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<br />. <br /> <br />Their were no representatives of the BRC at the January meeting, the Board <br />however offered to hear the BRC request from their representatives at any future Board e <br />meeting, The Beaver Reservoir Company is therefore now again requesting the project <br />Interest During Construction of $12,023,63 be rolled into the loan principal and <br />amortized over the loan's 40-year life, and company representatives will be present at the <br />May 12'hBoard meeting to make a presentation. By way ofan April 28, 1998 letter to the <br />Board (attached), the BRC is also requesting the terms of their $42,000 project feasibility <br />study loan be changed from a 0%-3Oyear loan to a 0%-40 year loan to match the 40 year <br />length of their project construction loan, The April 28, 1998 letter also refers to the <br />BRC's possible request for a deferment of an annual loan payment <br /> <br />DISCUSSION <br /> <br />No new information has been presented to staff since the January Board meeting <br />relative to the BRC's request to include the IDC with the loan principal and amortize it <br />over 40 years, Our original January recommendation therefore has not changed, <br /> <br />Regarding the BRC request to change the terms of their feasibility study loan, an <br />apparent miscommunication between CWCB staff and the BRC during their original loan <br />application resulted in the 30 year length of the loan rather than a 40 length to match their <br />project construction loan, Changing the term of the feasibility study loan to 40 years has <br />little effect, since the loan is at 0%, and also makes accounting of the two loans for the ... <br />same project more consistent ., <br /> <br />The request for the deferment of an annual payment has not been presented to the <br />Board in the past In response to this request however, staff has recommended to the <br />BRC on several occasions that they increase their annual assessments in order to meet <br />their financial obligations, Also, as part of the project feasibility study, the presidents of <br />each of the member ditch companies signed Corporate Resolutions in August 1995 <br />(attached) resolving that "the costs of financing this project will be passed through to the <br />shareholding ditch companies in the form of additional assessments!' To date, no recent <br />information has been received by the CWCB staff regarding the 1998 assessments of the <br />BRC or its' three member companies, Therefore, a deferral of an annual payment does <br />not seem appropriate, <br /> <br />STAFF RECOMMENDATION <br /> <br />We recommend: <br /> <br />1, The Board reaffirm its' action taken at the January 29, 1998 meeting, <br />2, Change the terms of the Beaver Reservoir Company's $42,000 feasibility <br />study loan from a 0%-30 year loan to a 0%-40 year loan, <br />3. The loan change shall be contingent upon all standard contracting provisions ... <br />of the CWCR ., <br />