Laserfiche WebLink
Implementation Plan <br /> We have outlined the following tasks as part of our implementation strategy to "assess and report <br /> by 2/99:" <br /> • Review all authorized loans not constructed and determine how long they have been <br /> authorized. <br /> • Identify funding authorizations for completed projects with residual balances on the books <br /> and recommend any residual funds be returned to the cash balance of the Construction Fund. <br /> • Develop and evaluate options in consultation with the Colorado Water Congress for the <br /> Board to consider concerning the feasibility of rigid time limits for the Construction Fund <br /> loan approvals. <br /> • Propose amendments to CWCB statutes or to the Board's Guidelines as necessary. <br /> • Present CWCB assessment of this issue, along with any recommended action, to the <br /> Governor and the General Assembly by February 1, 1999. <br /> Discussion <br /> The Auditor's recommendation is that the CWCB needs a system to annually review candidate <br /> projects for de-authorization. They feel there should not be any "hidden" unreserved cash <br /> • resulting from projects that are not moving forward. This raises several policy questions: <br /> What is a reasonable time limit for a borrower to use a Construction Fund loan? <br /> The board has already established reasonable time limits. The Guidelines provide that,in September <br /> of each year, the Board will review the status of all previously authorized projects which are as yet <br /> not started or are unfinished. The Board will review for reasonable progress on all projects which <br /> have (1) not started 24 months after authorization, and (2)projects still in process 36 months after <br /> authorization [Guidelines,paragraph 1.3.4.d]. <br /> Each project is different.however, most projects, regardless of their size, can complete the <br /> design/permitting/bidding process within 3 years. Also to be considered in this question is what is <br /> meant by the"average time to start a project?" There are several possibilities, including: 1. Date of <br /> Construction Contract Award, 2. Date of Design Contract Award, 3. Date of Initial request for loan <br /> funds, 4. Date of Loan Contract. Typically the Award of a Construction Contract is the "point of <br /> no return" in a project. Legal commitments are made to the Contractor at that time and the project <br /> generally proceeds to completion. The key phrase in the Guidelines statement is "reasonable <br /> progress"which should be determined in the judgement of the Board. <br /> Should the time limit be different for different types of projects? <br /> If Project specific time limits were considered by the Board it would be cause for time-consuming <br /> discussion and negotiations by the borrower and the CWCB at the time of Board approval. A <br /> • <br /> blanket time limit for all projects eliminates the need for time negotiations during the Board <br /> 2 <br />