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. . Agenda Item CFc January 19, 1994 Page two LA WMA and Helton & Williamsen, P.c., have submitted a detailed plan of study which is being reviewed by staff. LA WMA'S financial condition and <1bility to pay have not been reviewed by staff. STAFF RECOMMENDATION The staff recommends: 1. That a Construction Fund Loan in amount of $65,000 ( 4.4% interest) be approved for the Lower Arkansas Water Management Association, to conduct a feasibility study to evaluate alternatives for a substitute supply plan, and 2. That Interest on the loan will accrue from the date the funds are drawn by LAWMA. Repayment of the loan principal and accrued interest can be included as part of a subsequent loan for the actual construction of the project. If the project is not built, and/or there is no subsequent Construction Fund loan, then this feasibility study loan will be repaid over a 10 year period, amortizing all principal and accrued interest, and 3. That loan approval be contingent upon staff review and acceptance of the Plan of Study submitted by Helton & Williamsen, P.c., and 4. That loan approval be contingent upon review of LAWMA'S financial condition and ability to repay the subject loan. ACTION TAKEN BY THE CWCB BOARD (The CWCB approved the above staff recommendation, with the exception of the interest rate, which was lowered to 4.25%, reflecting the 30 year T-bond rate, less 2%.) The Board: 1. Approved a Construction Fund Loan in amount of $65,000 (4.25% interest) for the Lower Arkansas Water Management Association, to conduct a feasibility study to evaluate alternatives for a substitute supply plan, and