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<br />Hope Ditch Company <br />January 24-25, 2005 <br /> <br />Agenda Item 18a <br /> <br />As security for the loan, the HOC will pledge its monthly and special capital water assessment <br />revenue backed by a rate covenant, and the replacement well, along with the land parcel where the <br />well is located and all related appurtenances. The well, pump house and storage tanks are <br />located on a parcel of land (60 ft. x 145 ft.) deeded to HOC in 1993. This is in compliance with <br />CWCB Loan Policy #5 (Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a loan not to exceed $154,530 ($153,0000 for project costs and $1,530 for the 1 % <br />Loan Service Fee in accordance with CWCB Loan Policy #16), to the Hope Ditch Company from the <br />Construction Fund, to replace an existing well for domestic water supply. The recommended terms of <br />the loan are 30 years at 3.75% per annum. Security for the loan will be a pledge of monthly and capital <br />water assessment revenue, backed by a rate covenant, and the replacement well, along with the land <br />parcel where the well is located and all related appurtenances. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB, with the following additional condition: <br /> <br />In the event that the Hope Ditch Company should amend Article VIII, Section 7.7 of its By- <br />Laws, removing the Company's ability to file liens and foreclose on lots for delinquent <br />assessments, the CWCB loan shall become due and payable in full. <br /> <br />cc: Dave Force, Treasurer, Hope Ditch Company <br />Amy Stengel, AGO <br /> <br />Attachment <br /> <br />Action Taken bv the CWCB on January 25. 2006 <br />The CWCB approved the Staff Recommendation. <br /> <br />Page 5 of 5 <br />