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<br />Mr. Mike Sedet <br />August 25, 1999 <br />Page Two <br /> <br />been submitted to RMI together with an extensive proposal. A copy of that proposal is attached <br />to my letter to Mr. Val Jolly. <br /> <br />In Attachment 2, entitled "Irrigation Project Costs," PMRCA sets out its computation of the total <br />project cost, amounting now to $336,345.37. Since the inception of the project, the costs have <br />changed somewhat while others had not been anticipated. One unanticipated cost is the expense <br />of an engineer to oversee the conclusion of the project and certify its completion. This <br />attachment also sets out those costs which have not been paid, a total of $83,139.84. <br /> <br />In Attachment 3, the present loan status is illustrated, showing a balance of $32,837.34 to be <br />extended on the original loan. Utilizing the project cost of $336,345.37, were the CWCB to <br />agree to increase the loan commitment from $206,000 to $252,258, an additional $79,095.34 <br />would be applied as shown. The careful observer will notice that the balance due RMI <br />(Attachment 1) is $70,222.01 but that the CWCB 75% loan amount of $62,354.88 is applied to <br />the remaining project costs. This is explained by examining the amounts already paid by <br />PMRCA and for which the CWCBloan proceeds have not been used and noticing that the <br />Association has paid more than its 25 % under this scenario and would receive some of the loan <br />proceeds from CWCB to reimburse itself for that payment. Those funds, as shown in Section <br />"C" of Attachment 3, would be wholly applied to the project costs. In order to complete the <br />project as stated and satisfy all costs, PMRCA would have to raise a further $4,044.50. <br /> <br />In advancing this proposal to RMI, as you can see from my letter to Mr. Jolley, it is proposed <br />that RMI would agree to waive any lien rights it may have as well as to complete the project for <br />the amount stated and in a workmanlike manner. PMRCA would commit itself to assuring that <br />funds for payment would be on hand prior to for completion. With this procedure, there would <br />remain little to prevent RMl's completion of the project. <br /> <br />I will appreciate your review of this summary of the proposal and responding to me with the <br />results of your review. <br /> <br />Yours truly, <br /> <br />?jJJ,T.HH ~ & ~YFF~R <br />~~ <br /> <br />John C. Booth <br /> <br />JCB/mar <br /> <br />cc: Linda Bassi, Esq. <br />Client <br />