BOARD01574 - Laserfiche WebLink

Home Browse Search

Memorandum CWCB Members March 11, 1981 Page three price of $36,000, the Federal participation towards the project would be reduced to about $200,000=. At the request of Trinidad, a contract was signed with Starkville on December 16, 1980. The contract provided amongst other things, the following: (a) the tapping fee for 80 household taps to be provided' for Starkville would be $36,000 and (b) all existing city ordinances would be in full effect. On Monday, March 9, 1981, the mayor of Starkville, Ms. Marie Corich, called our office and informed us that, according to a letter she received from Trinidad, unless the tapping fee of $36,000 was paid by Monday, March 16, 1981, the amount would be increased to $112,000, in compliance to existing city of Trinidad ordinances. This cost would render the project, according to the mayor, prohibitively expensive to the town. Subsequent to the telephone communication, the staff contacted the Trinidad city manager, Ted Ryan, who con- firmed the contents of the letter sent to Starkville. He also indicated that he thought that Starkville and the town attorney knew about the escalation clause, when the contract was signed in December, 1980. When the difficulties encountered by Starkville in putting a financial package together were explained to Mr. Ryan, he promised to take the matter up at the next city council meeting and try and get a deferment of about three months of the proposed escalation. Such deferment would have to be approved by the Trinidad city council. Farmers Horne Administration (FmHA) was then contact- ed by the staff. FmHA had already received an application for funding by Starkville but had not finalized the project, mainly in anticipation of additional information from Washington re- garding total funding available, and information forthcoming from the project engineer and the town of Starkville. It now appears that most of the information required is available to FmHA, who are expected to finalize a letter of conditions for funding which will be sent to the town for their approval. Preliminary figures available show that the 'proposed FmHA funding may be about $135,000 grant and $65,000 loan. However, no immediate money is available. The director of the state division of impact assist- ance Steve Schmitz, was also contacted by the staff. However, the application for impact assistance from Starkville is now being preliminarily considered by his office, and Mr. Schmitz did not expect any decision to be taken on the matter for about two months from now.