C150314 Feasibility Study - Laserfiche WebLink

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Feasibilitc Shide Farmers' High Line Canal and Reservoir Company October 2010 nationwide permit. Other permits regulating the particulars of constn�ction activities (i.e., constn�ction, dewatering, erosion control, roadway access, etc.) will be the responsibility of the contractor to obtain. INSTITUTIONAL CONSIDERATIONS FHL assessments are normally set by its shareholders at an Aiulual Meeting in March of each year. A simple majority is necessary to set the assessments. Assessinents will need to be increased in order to service the CWCB loan in the future. FHL will have to coordinate with its engineers and contractors to implement and complete construction. FHL will need to coordinate with City of Aivada when scheduling the work near the West Woods Golf Course. The only contracts, agreen�ents, or court actions necessary for the construction of the project are a loan contract with the CWCB and a constn�ction contract with the contractor. FINANCIAL ANALYSIS AND CREDIT WORTHINESS The financial condition of the Canal Company is solid at the present time. The Company has no outstanding loans or financial obligations, except those listed in the Independent Auditor's Report (Appendix E) as damage deposits held pending completion of construction relating to easements over the Company's CanaL If no damage is done to the Company's property as a result of the construction activities, the deposits are returned to the payers. Currently, the damage deposits being held are in the amount of $41,708.02. The Company is not in fault, nor has it ever been in fault, of a financial obligation in its 125 year history. The Canal Company is applying for a loan of $1,551,218.89 from CWCB, based upon the amounts provided on the iteinized spreadsheet in the application (Appendix E) to be used on Capital linprovement Items 1 through 12 listed. A little over 10 percent of this amount has already been paid by the Canal Company to evaluate the Canal, obtain a Master Plan, and to replace an einergency failing pipe at Club Crest. The balance left for the Canal Company to borrow is approximately 1,396,097.00. The Coinpany requests a 30-year fixed loan with an interest rate of 4.65 percent. A loan amortization schedule can be found in Appendix F. The Company Shareholders have been notified that the Company plans to obtain a loan for the listed capital improvement projects. This is noted by Minutes of the Compasly Shareholder Meeting on March 11, 2010 (Appendix C). The Company has active shares in the amount of 1,ll0.8588 and a high percentage of those shareholders are comprised of municipalities. li12011, in addition to operating income and expenditures, the Company will budget for the Future CWCB Loan, by raising Canal Company assessments by the amount of one year's loan payment to the CWCB. This is evidenced by the attached amortization schedule for the proposed loan. The 2010 Balance Sheet and Profit/Loss Suinmary can be found in Appendix G. -14-