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<br />-t' rI <br /> <br />.. i <br /> <br />Agenda Item 17a. <br />July 13-14, 1998 <br /> <br />Page 3 <br /> <br />The District delivers water to agricultural and municipal users in southwestern Colorado. All the <br />towns and cities within the service area had a median household income of less than 80 % of the <br />1990 statewide average. The loan term: for feasibility studies is typically 10 years, with the <br />provision that the study loan may be incorporated into the construction loan for repayment. For <br />these reasons, staff is recommending a 3.5% per annum loan, for a duration of 10 years. (This is <br />equivalent to the "low Income" municipal rate, and to the "Agricultural" rate for a lO-year loan, <br />as approved by the CWCB in November 1997.) <br /> <br />Recommendation <br />The staff recommends: <br /> <br />1. That the Board revise The Guidelines for Financial Assistance through the Colorado Water <br />Conservation Board Construction Fund, paragraph 1.3.2. b., fIrst sentence, as follows: <br />Delete "Tfle C'NCB :mtij' 10aFl a max$l:lIH of 50 pereent of the cost of a feasibility smdy for a <br />water projeet." Replace with: "The' amount of a CWCB loan for a feasibility study for a <br />water project is generally limited to 75 % of the total cost of the study." <br /> <br />2. That a feasibility study loan from the Cons,truction Fund, in a maximum amount of $112,500, <br />not to exceed 75% of the total cost of:the f~asibility study, be approved for the Dolores Water <br />Conservancy District to investigate develoPrment of additional water supplies, and <br /> <br />3. That the fmancing terms for this feasibility study loan shall be an annual percentage rate of <br />. , I <br />3.5 % for a duratIon of 10 years, and : <br /> <br />4. That the feasibility study loan may be incqrporated into the construction loan for repayment, <br />and <br /> <br />5. That the loan be contingent on staff review and acceptance of the fInal Scope of Work for the <br />feasibility study, and <br /> <br />I <br />6. That loan approval shall be contingent upon all standard contracting provisions of the CWCB, <br />, I <br />and <br /> <br />7. That collateral for the loan shall be ~ sec~rity interest in the stream of income derived by <br />the Dolores Water Conservancy District. and other collateral as approved by the CWCB <br />Director. I <br /> <br />Attachments: (Map, Resolution, Letter Requesting Grant, Scope of Work) <br />D:\mswordlDWCDFS798memo . <br />