PROJ00283

• Contract/PO #: FS0009X
• Contractor Name: Swink, Town of
• Contract Type: Loan
• Water District: 0
• County: Otero
• Loan Projects - Doc Type: Feasibility Study

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All types of public works projects are eligible; however, it is an accelerated
program requiring that if an application for funds is approved, the project must
be under contract for construction within 3 months. Grant application forms
are still being formalized for the program at this date. It will probably be
between October 1976 and January 1977 before applications will be accepted for
review by the Economic Development Administration. It is recommended that appli-
cation forms be prepared and submitted as soon as possible to the Economic
Development Administration.

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(1) Since the program is an accelerated program requiring "on site" labor
within 90 days of application approval, (2) Since the Town of Swink does not
currently have complete construction plans and specifications prepared and ready
to receive bids, and (3) Since the R.O. treatment plant and related treatment
facilities will require a substantial amount of time for design and approval,
it is recommended that the Stage I construction be separated into two separate
projects. Project I would include all distribution mains and storage facilities
along with related "other cost" expenditures. Project II would include all water
treatment facilities and well houses along with related "other cost" expenditures.
An application can then be made to the Economic Development Administration for
100% Grant Funding for Project I.

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Considering the 1970 census median income as shown previously in this report,
the Town of Swink would qualify for grant funds from the Farmers Home Admini-
stration and t~ Four Corners Regional Commission. It is recommended that pre-
application forms be prepared and submitted to Farmers Home Administration and
the Four Corners Regional Commission as soon as possible. Usually the Four
Corners Regional Commission will not make a commitment until after the basic
Federal grant has been formalized. A preliminary review and approval or dis-
approval should be received within 30 to 90 days of submittal. The FHA can also
insure low interest (5 percent) long-term, 40-year loans provided the local
share of a project cannot be financed through commercial bond companies.

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Concurrent with the applications for grant funds, an application for a low-
interest loan for fifty percent of the project should be submitted to the State
of Colorado, Department of Natural Resources, Colorado Water Conservation Board.
After submittal, all applications can and should be modified as necessary to
reflect the current status and costs of the project. Changes in the application
may be made up until the time of approval and acceptance of a grant and/or
loan or until disapproval of the application.

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