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<br />, - <br /> <br />. <br /> <br />. <br /> <br />Agenda Item 29m <br />November 4, 1994 <br /> <br />2 <br /> <br />The project will allow the Town to better utilize its water rights, and could provide additional <br />income to the Town for water sold to other water providers outside the Town's boundaries. <br /> <br />The Town is requesting terms of 5% for 30 years. The standard CWCB rate is 5.5%. <br /> <br />(Staff will be visiting the project area and meeting with Town representatives on October <br />20,1994 to discuss the project and to get an update on feasibility study progress.) <br /> <br />STAFF RECOMMENDATION (as mailed to Board members) <br /> <br />The staff recommends:' <br /> <br />1. That a construction fund loan in an amount of $750,000 (not to exceed 75% of <br />the total project cost) be approved for the Town of Palisade to replace the Town's <br />Cottonwood Creek pipeline, and <br /> <br />2. That this loan shall be contingent upon completion of the feasibility study, and <br />a rmding that the selected project is feasible, and <br /> <br />3. That the financing terms shall be at an annual percentage rate of 5.5% and for <br />a duration of 30 years, and <br /> <br />4. That loan approval shall be contingent upon staff evaluation of the Town's <br />,rmancial condition and ability to pay, and upon all standard contracting provisions <br />of the CWCB, and <br /> <br />4. That the loan shall be contingent upon the Town being UNABLE to obtain <br />financing through the Colorado Water Resources and Power Development Authority. <br /> <br />,NOTE: On October 31, 1994 the Town's consultant (Westwater Engineering) provided updated <br />cost estimates and discussion of 4 alternatives for the replacement of the Cottonwood pipeline. <br />Estimated costs ranged from $871,000 to $1,407,000. This new information did not change the <br />requested loan amount of $750,000. In addition, the Town's Median Household Income (MHI) <br />of $18,507 is less than 80% of the State MHI of $30,140, and therefore staff recommended an <br />interest rate of 4 % for this loan. The following revised staff recommendation was presented to <br />the board on November 4, 1994: . <br />