Memorandum Construction Fund Workshop item c

• Board Meeting Date: 1/19/1999
• Description: Construction Fund Worshop item c January 27-28, 1999 Board Meeting Water Project Construction Loan Program
• Board Meetings - Doc Type: Meeting

• STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources .
721 Centennial Building � �\\ 4!.
1313 Sherman Street .�� �'
Denver,Colorado 80203
i Phone: [phone]
FAX: [phone] Bill Owens
Governor
Greg E.Walcher
Executive Director,DNR
Peter H.Evans
Acting Director,CWCB
MEMORANDUM
TO: Colorado Water Conservation Board Members
FROM: William P. Stanton, P.E., Chief, Project Planning and Construction Section",-
Michael G. Serlet, P.E., Manager, Design and Construction /1/7
DATE: January 19, 1999 .
SUBJECT: Construction Fund Workshop Item c. January 27-28, 1999, Board Meeting -
Water Project Construction Loan Program
Time Limits for Project Initiation and Completion
• Introduction
This memo provides the basis for the start of a discussion of the audit recommendation to establish
reasonable time limits for borrowers to complete projects financed through loans from the
Construction Fund.
Background
Recommendation#5 of the 1998 Construction Fund Performance Audit was that the Board "should
establish reasonable time limits for project sponsors to use monies authorized from the Construction
Fund. The time limits should be based on the average time needed to start a project. Upon
expiration of the time limit, the project should be automatically deauthorized unless the Board
specifically authorized an extension. Also, the Board should establish a process that ensures any
residual funding is immediately deauthorized upon project completion.
CWCB Response: AGREE. The duration of funding assistance has been reviewed annually by the
Board and the General Assembly. The Board has not considered rigid time limits for the
Construction Fund loan approvals and, given the political nature of some projects, it seems
appropriate to at least present and evaluate options to the Board before proposing an amendment to
the statute or to the Board's Guidelines. The Board will present its assessment of this issue, along
• with any recommended action, to the Governor and the General Assembly by February 1, 1999.