Laserfiche WebLink
<br />. <br />, <br /> <br />" <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Lama Ditch and Lateral Company <br />September 11-12, 2002 <br /> <br />Agenda Item 12e <br /> <br />The LDLC operating policy is to maintain a cash reserve of about $3000. While this places the ratio <br />of Cash Reserves to Current Expense in the weak category, it is fairly typical practice for ditch - <br />companies not to carry large cash reserves from year to year. <br /> <br />As security for the loan the LWIC will pledge assessment revenues backed by an assessment rate <br />covenant and the project itself. This security is in compliance with CWCS Loan Policy #5 <br />(Collateral). <br /> <br />Recommendation <br /> <br />Staff recommends a CWCS Small Project Loan, not to exceed $250,235, to the Loma Ditch and <br />Lateral Company from the Construction Fund for rehabilitation of the Loma Ditch and Lateral. The <br />recommended term of the loan is 30 years and the recommended lending rate is 2.75%. Security for <br />the loan will be a pledge of assessment revenues backed by assessment covenant and the project <br />itself. <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 />Terry Retherford, President, Lorna Ditch and Lateral Company <br />Jack Williams, Secretary-Treasurer, Lorna Ditch and Lateral Company <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />Page 5 of 6 <br />