Laserfiche WebLink
<br />I' <br /> <br />" <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Larimer and Weld Irrigation Co. <br />September 14-15, 2004 <br /> <br />Agenda Item 4e <br /> <br />In the past the LWIC operating policy has been to maintain a cash reserve of about $40,000, equal <br />to approximately 10% of its normal 0 & M expenses. The proposed rate structure will allow the <br />company to maintain about a $70,000 reserve. While this still places the ratio of Cash Reserves to <br />Current Expense in the weak category, it is fairly typical practice for ditch companies not to carry <br />large cash 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, including the Lake Lee Dam equalizer check structure, the Sig <br />Windsor Reservoir check and inlet structure, and the Finley check structure, This is in compliance <br />with CWCS Loan Policy #5 (Collateral), <br /> <br />Recommendation <br /> <br />Staff recommends a loan not to exceed $1,515,000 ($1,500,000 for project costs and $15,000 for the <br />1% Loan Service Fee in accordance with CWCS Loan Policy #16), to the Larimer and Weld Irrigation <br />Company from the Severance Tax Trust Fund Perpetual Base Account, to rehabilitate several <br />structures on the Larimer & Weld Ditch, including replacement of the Lake Lee Dam equalizer check <br />structure, the Sig Windsor Reservoir check and inlet structure, and construction of a new Finley check <br />structure. The recommended term of the loan is 30 years and the recommended lending rate is <br />2.50%, Security for the loan will be collateral in compliance with CWCB Loan Policy #5 (Collateral). <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: <br /> <br />Barry Anderson, President, Larimer and Weld Irrigation Company. <br />Duane Smith, Smith Geotechnical Engineering Consultants <br />Amy Stengel, AGO <br /> <br />Attachment <br /> <br />Page 5 of 5 <br />