PROJ01958 ‎(2)‎

• Contract/PO #: C150131A
• Contractor Name: Paonia, Town of
• Contract Type: Loan
• Water District: 0
• Loan Projects - Doc Type: Approval Letter

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Agenda Item 291
November 4, 1994

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DISCUSSION

The scope of work for the feasibility study is under development at this time. Approval of
additional funding should be contingent upon a review of the options and a finding that the
selected alternative is technically and financially feasible.

The Town is requesting that the $825,000 project receive 90% of its financing ($750,000) from
the CWCB. A loan for 75% of the project costs would be $619,000.

The Town is requesting an interest rate of 3 % for a duration of 20 years. Based on the current
for treasury bonds, CWCB "Standard terms" for a 20 year loan would be approximaltely 5%.

(Staff will be visiting the project area and meeting with Town representatives on October 19,
1994 to discuss the project and to get an update on feasibility study scope of work progress.)

STAFF RECOMMENDATION (as mailed to Board members)

The staff recommends:

1. That a construction fund loan in an amount of $750,000 (not to exceed 75% of
the total project cost) be approved for the Town of Paonia, to rehabilitate an
existing reservoir, or to construct a new raw water reservoir, and

2. That this loan shall be contingent upon completion of the feasibility stllldy, and
a rmding that the selected alternative is feasible, and

3. That the rmancing terms shall be at an annual percentage rate of 5% ~U1d for a
duration of 20 years, and

4. That loan approval shall be contingent upon staff evaluation of the Town's
financial condition and ability to pay, and upon all standard contracting provisions
of the CWCR, and

5. That the loan shall be contingent upon the Town being UNABLE to obtain
financing through the Colorado Water and Power Development Authorit),.