Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />. <br /> <br />Agenda Item 16c. <br />July 13-14, 1998 <br />Leroux Creek Water Users Association <br /> <br />The interest rate for a 30-year loan for agricultural purposes is 4 percent, as adopted by <br />the Board at the November 1997 meeting. The interest rate adopted for a 30-year <br />municipal loan in the low-income range was also 4 percent. The Town of Hotchkiss had <br />a 1990 median household income of $15,917, or 53-percent of the 1990 statewide income <br />($30,140) and falls in the low-income range. <br /> <br />Collateral for a loan would include a security interest in assessment income and land or <br />water rights owned by the LCWUA. <br /> <br />If the State Engineer requires that the dam be breached this fall, the LCWU A will need <br />funds from a CWCB loan, Release of other loan funds would be contingent upon <br />completion of the feasibility study. When the feasibility study is complete, the LCWUA <br />could apply for a construction loan that would be authorized through the regular <br />legislative process. <br /> <br />Recommendation <br /> <br />We recommend that the Board adopt a motion specifying that: <br /> <br />I. The sudden failure of the Carl Smith Reservoir Dam qualifies the Leroux Creek <br />Water Users Association (LCWUA) for a loan from the Emergency Infrastructure <br />Account because the loan "is necessary to avoid unreasonable risk of injury or <br />damage to human health or well being or to property or crops, and the emergency <br />condition is not the result of negligence in the operation or maintenance of the <br />infrastructure." <br /> <br />2. An Emergency Loan for up to $300,000, or 90 percent of qualifying design and <br />construction costs, whichever is less, shall be approved to the LCWUA. <br /> <br />3, The costs for geo-technical investigations shall be credited towards the LCWUA cost <br />share. <br /> <br />4. The interest rate shall be 4.00 percent and the term shall be 30 years. <br /> <br />5. Collateral for the Emergency Loan shall include a security interest in assessment <br />income and land or water rights owned by the LCWUA. <br /> <br />6. As a condition of the loan, the LCWUA must obtain liability insurance for all of its <br />reservolfS. <br /> <br />7. A grant from the Severance Tax Operational Account, in a maximum amount of <br />$5000, not to exceed 50% of the total study costs, is approved for the LCWUA, to <br />help pay for the cost of the reconnaissance and feasibility studies. <br /> <br />5 <br />