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<br />.~ <br /> <br />Lincoln Park Crooked Ditch Company <br />July 25-26, 2006 <br /> <br />Agenda Item 8a <br /> <br />The ratio of Cash Reserves to Current Expense is in the weak category, but it is fairly typical <br />practice for ditch companies, and other irrigation organizations, not to carry large cash reserves <br />from year to year. <br /> <br />As security for the loan, the LPCDC will pledge its annual assessment revenue backed by a rate <br />covenant, and the project itself, including the water rights associated with or decreed to LPCDC, <br />and their interest in the South Canon Ditch. This is in compliance with CWCS Loan Policy #5 <br />(Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a loan not to exceed $1,818,000 ($1,800,000 for project costs and $18,000 for the <br />1 % Loan Service Fee in accordance with CWCS Loan Policy #16), to the Lincoln Park Crooked Ditch <br />Company from the Construction Fund, to rehabilitate their existing piped irrigation ditch. The <br />recommended terms of the loan are 30 years at 3.25% per annum. Security for the loan will be a <br />pledge of assessment revenues backed by a rate covenant, and the project itself, including the water <br />rights associated with or decreed to Lincoln Park Crooked Ditch Company, and their interest in the <br />South Canon Ditch. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCS. <br /> <br />cc: AI Cole, President, Lincoln Park Crooked Ditch Company <br />Steve Ellis, P.E, Stillwater Engineering <br />Amy Stengel, AGO <br /> <br />Attachment <br /> <br />Action Taken bv the CWCBon Julv 25. 2006 <br />The CWCS approved the Staff Recommendation. <br /> <br />Page 5 of 5 <br />