Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />t~ <br />~, <br />(~ expenditures to an amount in excess of $1,134,500. The issue to <br />~ be decided is whether the authorizing legislation would permit <br />'_J the Board to do this (part grant and part loan in the proportions <br />c~ originally authorized), and if so, does the Board want to make <br />such funding available. If this cannot be done, then the Board <br />could proceed only if, and when, the authorizing legislation is <br />amended. <br /> <br />Fourth, if the Board concludes that it cannot or does not <br />want to make more money available to the District pursuant to the <br />authorizing legislation for expenditures which it will have to <br />incur this winter, the Board could still assist the District in <br />that: <br /> <br />The Board may extend the authorized <br />repayment period for any project and defer <br />one or more annual payments if, in.the <br />Board's opinion, the entity requesting such <br />extension and deferment demonstrates that it <br />has encountered significant and unexpected <br />financial difficulties and that it has been <br />duly diligent in its efforts to comply with <br />the repayment provisions of its contract with <br />the Board. Section 37-60-122(3), eRS. <br /> <br />The issue to be decided is whether the Board wants to grant such <br />an extension or deferment. In this regard, I have asked the <br />District to provide information which will substantiate its <br />financial circumstances in the event the Board wants to consider <br />this possibility. <br /> <br />Finally, there is the issue of what steps need to be taken <br />by the Board to protect its investment in the project and any <br />avenues of legal recourse which it may have in association <br />therewith. <br /> <br />Recommendations <br /> <br />I have asked the Attorney General's Office to be prepared to <br />advise the Board on the legal aspects of the above issues. The <br />recommendations made below are, therefore, sUbject to change <br />depending upon the final conclusions to which the Attorney <br />General's Office comes. <br /> <br />Subject to that contingency, I recommend that the Board: <br /> <br />(1) authorize such additional funding for the District as <br />is needed to complete the necessary engineering work and <br />investigation that will be conducted by Harza, such funding to be <br />a combination grant and loan in the same proportions and subject <br />to the same terms as provided for in the authorizing legislation, <br />but not to exceed the amount that would bring total expenditures <br />on the project to the originally authorized $1,134,500, <br /> <br />MEMORANDUM <br /> <br />-4- <br /> <br />November 5, 1985 <br />