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<br />. <br /> <br />. <br /> <br />t <br /> <br />. provide that RMI will deliver to CWCB, funds for the purchase of water from PMRCA up <br />to the amount of the annual loan payment in each year, and <br /> <br />. describe the arrangements for the sale of treated water to local residents. <br /> <br />The loan contract with PMRCA will be amended to increase the amount of the loan, to change <br />(with the Board's approval) the term and lending rate for the loan and to fmalize the deed of <br />trust encumbering the project and PMRCA's water rights. <br /> <br />One agreement item, which must be settled by action of the Board, is the issue of the disbursement <br />of the additional CWCB funds only upon project completion. Since the contract amendment could <br />take two months to complete, it would be advantageous to all the parties involved for the CWCB to <br />release funds at least up to the original $206,000 contract amount. <br /> <br />Recommendation <br /> <br />Staff recommends that: <br /> <br />1. The contract with Pinon Mesa Ranches Community Association (PMRCA) be <br />amended for a loan term of ten years with an associated lending rate of 3.25 percent. <br /> <br />2. The Board approve disbursing the remaining funds under the existing contract for up <br />to $206,000 to PMRCA to allow staff te, pay 75 percent of all construction invoices <br />received prior to the time an amended contract is in place. <br /> <br />3. The certificate of deposit account requirement remains at $11,554 and will PMRCA <br />establish a ten-year debt service reserve fund. <br /> <br />4. All other conditions and contract amendments as approved during the Special Board <br />Meeting on June 16 will remain unchanged. <br /> <br />Cc: Charles and Irene Palmer, PMRCA <br />Brad Simmons, RMI <br /> <br />Attachments <br /> <br />5 <br />