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<br />. <br /> <br />. <br /> <br />Agenda Item 19d <br />January 12, 1994 <br />Page 4 <br /> <br />" <br /> <br />For engineering cost indices, the staff has referred to and used the Engineering News <br />Record's Engineering Cost Indexes, they are listed below: <br /> <br />Cost Index <br />Construction Cost <br /> <br />January 1994 <br />Value Index <br />5336 <br /> <br />October 1993 <br />Value Index <br />5264 <br /> <br />January 1981 <br />Value Index <br />3372 <br /> <br />Using these values, an allowable adjustment factor to the 1981 authorized loan <br />amount is 0.59; therefore, an increase in an amount of One Hundred Eighty-Four Thousand <br />Nine Hundred Eighty-Two Dollars ($184,982) appears to be permissible under the 1981 <br />authorization. <br /> <br />Under the 1981 loan terms, the annual Town payment to the Board with the loan. <br />increase will be $18,223.48. The additional security which needs to be provided by the Town <br />to the Board will obtained by amendment of their Ordinance Number 429, which will provide <br />for an increase to the existing $2 tap fee. The increase will be 0.75 dollars on all existing and <br />new water taps which will bring the total fee to $2.75 commencing on February 1, 1984. <br />Upon approval of the Town's request to increase their existing loan, the new loan amount <br />and terms will be Four Hundred Ninety-Eight Thousand Five Hundred Twelve Dollars <br />($498,512) at 2 percent for 40 years with an annual payment of $18,223.48. This new loan <br />amount will result in a CWCB participation of 44 percent in the total project cost. <br /> <br />The December 1993 project design is in compliance with FEMA, U.S. Corps of <br />Engineers, and CWCB design standards. Upon completion the project will remove the Town <br />from the 10o-year floodplain. The Town's entire business district and a large portion of their <br />residential areas currently lie within the lOo-Year floodplain. This flood risk designation <br />poses a serious economic burden to the community. <br /> <br />RECOMMENDATION <br /> <br />Following a detailed review of the Town of Erie's request for an increase in their <br />construction loan as authorized by Senate Bill 439 in 1981, the staff recommends an increase <br />in an amount of One Hundred Eighty-Four Thousand Nine Hundred Eighty-Two Dollars <br />($184,982) making a total loan of Four Hundred Ninety-Eight Thousand Five Hundred <br />Twelve Dollars ($498,512) under the 1981 loan terms and conditions which are for a loan <br />term of 40 years at a 2 percent interest rate with annual payments of Eighteen Thousand <br />Two Hundred Twenty-Three Dollars and Forty-Eight Cents ($18,223.48). <br /> <br />Enclosure <br />LFL/bj <br /> <br />bjl265.19d <br />