PROJ01902 ‎(2)‎

• Contract/PO #: C150162
• Contractor Name: Johnson and Edwards Ditch Company
• Contract Type: Loan
• Water District: 0
• Loan Projects - Doc Type: Approval Letter

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Johnson and Edwards Ditch Company
November 19-21, 2003

Agenda Item Be
(Updated November 21, 2003)

Table 2. Financial Ratios

Financial Ratio Without With
the project The oroject
Operating Ratio (revenue/expense) 119% 106%
weak: less than 100% (average) (average)
average: 100% - 120%
stronQ: Qreater than 120%
Debt Service Coverage Ratio No Debt 124%
(revenues-expenses)/debt service (strong) (average)
weak: less than 100%
average: 100% - 125%
strona: areater than 125%
Cash Reserves to Current Expense 40% 27%
weak: less than 50% (weak) (weak)
average: 50% - 100%
strona: areater than 100%
Annual Cost per Ac-Ft (8,900 ac-ft diverted) $1.18 $3.09
weak: greater than $20 (stron~n (strong)
average: $10 - $20
strong: less than $10

As security for the loan the JEDC will pledge assessment revenues backed by assessment
covenant and the ditch itself. This security is in compliance with CWCB Loan Policy #5
(Collateral).

Recommendation
Staff recommends a CWCB Small Project loan from the Construction fund in amount up to
$133,825 ($132,500 for project costs and $1,320 $1,325 for the 1% Loan Service Fee, in
accordance with CWCB Loan Policy #16) to the Johnson and Edwards Ditch Company. The
loan is for up to 90% of the cost to construct a well augmentation and groundwater recharge
project and purchase water rights. The recommended loan terms are 30 years at 2.5% (2.58%
Annual Percentage Rate), 20 years at 2.25% (2.36% Annual Percentage Rate), or 10 years at
2% (2.20% Annual Percentage Rate), at the borrower's option. Security for the loan will be a
pledge of assessment revenues backed by assessment covenant and other Company property
adequate to assure repayment of the loan, in accordance with CWCB Loan Policy #5.

Staff further recommends that final approval of the loan be conditioned upon standard
contracting provisions of the CWCs.

Action taken bv the CWC8 November 20. 2003
The CWCB approved the Staff Recommendation with the changes noted above in italics.

cc: Tom Gill, Johnson and Edwards Ditch Co.
Brent Nation, P.E.
Linda Bassi, AGO

Attachment

C:Proj-New\JEDC 1103 memo;

L:\boardmem\Nov03\8e - Johnson and Edwards Ditch

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