PROJ01958 ‎(2)‎

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

Agenda Item 291
November 4, 1994

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NOTE: On October 28, 1994 the Town's consultant provided an updated loan request which
narrowed the project, and reduced the total project cost to $750,000. Their loan request was
thus revised to $600,000 (75% of the total project cost.) In addition, the Town's Median
Household Income (MHI) of $18,705 is less than 80% of the State MID of $30,140, and
therefore staff recommended an interest rate of 4 % and a term of 30 years for this loan. The
following revised staff recommendation was presented to the board on November 4, 1994:

STAFF RECOMMENDATION (at the November 4. 1994 Board meeting):

1. That a construction fund loan in an amount of $600.000 (not to exceed 75% of
the total project cost) be approved for the Town of Paonia, to rehabilitan~ existing
reservoirs, or to construct a new raw water reservoir, and

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

3. That the fmancing terms shall be at an annual percentage rate of 4% ~md for a
duration of 30 years, and

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

5. That the loan shall be contingent upon the Town being UNABLE leo obtain
fmancing through the Colorado Water and Power Development Authority.

ACTION TAKEN BY THE CWCB NOVEMBER 4. 1994:

The CWCB approved the revised Staff recommendation exactly as presented at the
November 4, 1994 Board meeting.

Attachments
C:\wp51\john\29I.nov