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<br />. <br /> <br />. <br /> <br />. <br /> <br />Tunnel Water Co. <br />September 25-27,2000. Agenda Item 11. <br /> <br />Recommendation <br />Staff recommends that the CWCS find that the Tunnel Water Company is eligible for a loan <br />from the Emergency Infrastructure Repair Account because: "the project is necessary to avoid <br />unreasonable risk of injury or damage to human health or well-being or to property or crops, <br />and because the emergency condition is not the result of negligence in the operation or <br />maintenance of the infrastructure." <br /> <br />Staff recommends an Emergency Loan not to exceed $1,600,000 to the Tunnel Water <br />Company for up to 90% of the costs to rehabilitate the Laramie-Poudre Tunnel. The <br />recommended term of the loan is 30 years and the recommended blended lending rate is 4.5%. <br />Security for the loan will be a pledge of assessment revenues backed by assessment covenant <br />and Company property at least equal in value to the loan amount. <br /> <br />Staff further recommends that final approval of the loan be conditioned upon acceptance of the <br />project and the associated financial obligations by a vote of the shareholders of the Company <br />and the boards of the two major shareholders, completion of the feasibility study by November <br />30, 2000, and all standard contracting provisions of the CWCB. <br /> <br />cc: <br /> <br />Fred Walker. President, Tunnel Water Co. <br />Don Deere, P.E., RMC <br />Linda Bassi, AGO <br /> <br />Attachment <br /> <br />C:\WP51 \Proj-New\TunneIW aterC0900memo <br />L:\boardmem\sepOO\ 11 <br /> <br />5 <br />