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<br />., <br /> <br />.. <br /> <br />It <br /> <br />Agenda Item 7 <br />,March 13.1989 <br /> <br />with respect to restructuring the city's debt to the <br />Board. we have not yet negotiated the details with the city. <br />However. the enclosed letter reiterates the city's intention <br />to resume annual payments in March 1990. and to attempt to <br />recover the three deferred payments in 2007-2009. prior to the <br />expiration of the original 40 year repayment period. Given <br />the progress which the city has made in correcting its <br />financial problems and working with the Board's staff in good <br />faith. I suggest that the Board delegate to the staff the <br />final decision as to the restructuring of the city's debt to <br />the Board subject to the limitations set forth below in my <br />recommendation. <br /> <br />Recommendation <br /> <br />I recommend that the Board authorize me to amend the <br />existing loan contract with the City of Fruita to: (1) <br />substitute a pledge of sales tax revenues for the Board's <br />partial interest in the water system. and (2) adjust the <br />city's repayment obligation in any manner that achieves <br />repayment over not more than a total of 43 years so long as <br />annual payments recommence in March. 1990. <br /> <br />DWW/bj <br />Attachments <br /> <br />-2- <br /> <br />/ <br />