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<br /> <br />.. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Lartmer and Weld Irrigation Co. <br />July 23-24, 2002 <br /> <br />Agenda Item 198 <br /> <br />The LWIC operating policy is to maintain a cash reserve of about $40,000, approximately equal to <br />10% of its normal 0 & M expenses. While this places the ratio of Cash Reserves to Current <br />Expense in the weak category, it is fairly typical practice for ditch companies not to carry large cash <br />reserves from year to year. <br /> <br />As security for the loan the LWIC will pledge assessment revenues backed by an assessment <br />covenant and the project itself. This is in compliance with CWCB Loan Policy #5 (Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a CWCB Small Project Loan not to exceed $1,000,000 to the Larimer and Weld <br />Irrigation Company from the Construction Fund to rehabilitate and replace 10 check structures and <br />install one new check structure in the Larimer & Weld Ditch (Eaton Ditch). The recommended term of <br />the loan is 30 years and the recommended lending rate is 2.75%. Security for the loan will be a <br />pledge of assessment revenues backed by assessment covenant and the project itself. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon all other standard <br />contracting provisions of the CWCB, and prior to entering into a contract LWIC will obtain other <br />financing necessary to complete the project as described in this memorandum. <br /> <br />cc: Barry Anderson, President, Larimer and Weld Irrigation Company. <br />Duane Smith, Smith Geotechnical Engineering Consultants <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />Page 5 of6 <br />