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<br />LAWMA - Water Rights Purchase
<br />
<br />Agenda Item 11 c
<br />
<br />January :;12-23,2008 (UPDATED January 28,2008)
<br />
<br />(ARCA) agreeing to that use, under the resolution that established the permanent pool. Currently,
<br />it is not anticipated that ARCA will make a ruling on the issue in the next few months, which does not
<br />meet the required purchase deadline by the seller and LAWMA to purchase the remaining 1/2 of the
<br />Keesee water rights. If ARCA were to allow the use of the Keesee water rights for permanent pool
<br />water in John Martin Reservoir, DOW would at that time be interested in negotiating a separate
<br />agreement with LAWMA to purchase a portion of the Keesee water rights. This purchase would be
<br />contingent upon LAWMA willingness to sell and the terms and conditions of the purchase
<br />agreement.
<br />
<br />Financial Analvsis
<br />
<br />The total estimated cost of the Keesee Water Rights is $3,650,000. LAWMA is requesting a CWCS
<br />loan in the amount of $2,470,000. LAWMA qualifies for a blended interest rate of 2.30%. Staff
<br />recommends that the Board consider a maximum loan amount of $2,494,700 ($2,470,000 for water
<br />rights purchase and $24,700 for the 1 % loan service fee) for 30 years at an interest rate of 2.30%,
<br />Table 2 is a summary of the financial aspects of the project. A CWCS Loan of $2,494,700 would
<br />have an annual payment of $127,640 (including the 10% reserve requirement).
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<br />Table 2. Keesee Loan Financial Summary
<br />
<br />
<br />in 2009
<br />
<br />$3,650,000
<br />226
<br />1&,934
<br />$2,494,700
<br />$127,640
<br />$'22~30
<br />$27.30
<br />$72.52
<br />
<br />Table 3 shows the required annual payments on the existing loans, as well as the proposed Keesee
<br />water rights loan, as follows:
<br />
<br />Table 3, CWCB Loan Summary*
<br />
<br />Loan No. 2008 2009 2010- 2015 - 2035 -2037 2038 -
<br /> 2014 2034 2039
<br />C153715 $199,184 $199,184 $199,184 $199,184 $199,184
<br />C153756 $ 9,154 $ 9,154
<br />C153768 $ 67,200 $ 67,200 $ 67,200 $ 89,297 $ 89,297
<br />C150150 $108,575 $108,575 $108,575 $108,575
<br />New Loan $0 $116,035 $116,035 $116,035 $116,035 $116,035
<br />Totals $384,113 $500,148 $490,994 $513,091 $404,516 $116,035
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<br />* Does not Include 10% reserve requirement.
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