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<br />~ <br /> <br />, <br /> <br />e <br /> <br />e <br /> <br />e <br /> <br />Lorna Ditch and Lateral Company <br />September 11-12, 2002 <br /> <br />Agenda Item 12e <br /> <br />will allow more efficient delivery of irrigation water to the shareholders as well as eliminate the open <br />ditch with its requisite problems, including leakage, seepage and flooding, as well as provide <br />needed salinity control, improved water quality and water conservation. Provision for future <br />installation of meters was also a consideration in selecting this alternative. <br /> <br />Total Project cost is estimated to be: <br /> <br />1. <br />2. <br /> <br />NRCS Planning and Design <br />Construction <br /> <br />$ 25,000 <br />253.041 <br />$ 278,041 <br /> <br />TOTAL <br /> <br />The implementation schedule calls for construction to begin in Fall 2002, when financing <br />arrangements are finalized, and when water is turned off in the ditch. NRCS planning and design <br />is completed. The project construction would be completed by the end of the year. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is $278,041. LDLC water is used exclusively for agricultural <br />purposes and staff is recommending a loan in the maximum amount of $250,235 during <br />construction (approximately 90% of estimated total cost), reducing to $178,000 once the project is <br />complete. The recommended loan terms are 30 years at an interest rate of 2.75% . <br /> <br />Funding sources for the project are shown in Table 1: <br /> <br /> Table 1: Proiect Fundina Sources <br /> Construction Phase <br /> Funding Source Grant Loan <br />NRCS Plannina and Desiqn $25,000 <br />CWCS Loan $250,235 <br />Loma Ditch and Lateral Companv $ 2,806 <br />Total ($278,0411 $27,806 $250,235 <br /> Permanent Financina Phase <br />NRCS Planninq and Desiqn $25,000 <br />NRCS Construction Cost share $75,041' <br />CWCS Loan $178,000 <br />Total ($278,0411 $100,041 $178,000 <br /> <br />'When construction is complete, the Company will receive $75,041 in NRCS cost sharing. These <br />funds will be used to pay construction costs, and to reduce the CWCS loan to $178,000. <br /> <br />Alternative financing sources: The Company actively sought alternative financing with the NRCS. <br />NRCS has provided a grant for $25,000 for planning and design, and $75,041 for construction cost <br />share. <br /> <br />Table 2 is a summary of the financial aspects of the project. A CWCS Small Project Loan of <br />$178,000 would have an annual payment of $9,669 (including the 10% reserve requirement) at the <br /> <br />Page 3 of 6 <br />