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<br />..t <br /> <br />'. <br />,..: <br /> <br />MEMORANDUM <br /> <br />TO: The Town of Johnstown File <br /> <br />FROM: Bill Green <br /> <br />DATE: June 11, 1996 <br /> <br />SUBJECT: Johnstown Feasibility Study <br /> <br />INTRODUCTION <br /> <br />The Town of Johnstown is proposing to construct an approximately 10-mile long raw water <br />pipeline to replace an open ditch used as a source of municipal water supply. The Town is <br />holding a bid opening on Friday June 14, 1996. The engineer's estimate for the project is <br />$2,548,900. <br /> <br />BACKGROUND <br /> <br />John Van Sciver's memo to the Board of October 29, 1993 (updated November 12, 1993), <br />indicates that the Town of Johnstown applied to the Board for a $3.06 million Construction <br />Fund loan to construct the raw water pipeline. The Board gave conditional approval on <br />November 9, 1993 for a $2.5425 million loan at 4.0 percent for 30 years not to exceed 75 <br />percent of construction-related costs. <br /> <br />The conditions imposed by the Board are that: (1) loan approval may be revised by the Board <br />subject to review by the Water & Power Authority and, (2) the loan is "...contingent upon an <br />evaluation of the economic impact of the possible closing of the Golden Technologies plant <br />and the impact this closing would have upon the Town's ability to repay the loan....". <br /> <br />Mike Brod of the Water & Power Authority informed me today that Johnstown has a <br />$1,785,000 loan authorization for the pipeline project with the Authority. The loan was part <br />of a 20-year Authority bond issue sold in February of this year and represents the Town's <br />borrowing limit with the Authority. The Town has not yet drawn upon the loan. <br /> <br />FEASIBILITY <br /> <br />John Burgeson of PRC Environmental Management sent me a copy of the feasibility study <br />dated July 1993. We also have a credit report in the Johnstown file dated November 1993 <br /> <br />1 <br />