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<br />Agenda Item 7b <br />May 14, 1996 <br /> <br />2 <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />To assist the City, Staff is recommending that the CWCB Emergency loan be structured for <br />interest payments only, for a period of 3 years. At that point, the Emergency loan can be rolled <br />into a new CWCB Construction Fund Standard Loan. Staff is also recommending that the City <br />be allowed to refinance qualifying expenses directly related to these emergencies. <br /> <br />COLLATERAL <br /> <br />On December 23, 1995 the City formally created a separate water activity enterprise. The <br />CWCB can take a collateral interest in this stream of revenues. <br /> <br />STAFF RECOMMENDATION <br /> <br />The staff recommends that the November 7, 1995 CWCB <br />recommendation be revised to the following: <br /> <br />1. That the Board finds that flood damage to the City of Idaho Springs' raw water <br />intake, and the sudden failure of the valve and existence of a large sinkhole at the <br />City's Chicago Creek Reservoir qualify the City for a loan from the Emergency <br />Infrastructure Account, and <br /> <br />2. That a construction fund Emergency Loan in an amount of $130,000, be <br />approved for the City of Idaho Springs (and/or the City of Idaho Springs Water <br />Activity Enterprise) to make emergency repairs (or to refinance the cost of <br />qualifying emergency repairs already completed) to the City's raw water intake <br />structure, and to the City's Chicago Creek Reservoir, and <br /> <br />3. That the financing terms for the Emergency Loan shall be at an annual <br />percentage rate of 4.75%, interest payments only, with total loan due at the <br />conclusion of 3 years, and <br /> <br />4. That loan approval shall be contingent upon completion of the feasibility study, <br />and upon all standard contracting provisions of the CWCB, as determined by the <br />CWCB Executive Director, and <br /> <br />5. That security for the loan shall be a collateral interest in the stream of income <br />derived by the City's water activity enterprise. <br /> <br />(Note: The CWCB approved the above provisions, but specified that, in reference to Item 3., <br />this approval does not obligate the CWCB to make further loans to the City of Idaho Springs.) <br /> <br />Attachments <br />C:\wp51 \PROl-NEW\7b.May <br />