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M M FINANCING - S.R. 60 WATERLINE Utilities Director Terry Pinto noted that the Commission had authorized the awarding of bids on the SR -60 waterline as soon as we had concurrence with the Farmers Home Administration. It is necessary to get all of our information to Farmers Home Administration within the next week in order to obtain a Guide 1-A Commitment Letter for Financing, which is a triggering mechanism for our existing $2.7 million financing. If we don't get all this material to FHA and do not receive Guide 1-A before July 1st, it triggers a call on those notes and we would have to reissue them. Administrator Wright explained that $2 -million of this project will go with the $2.7 million being put in by the developers. The developers really won't have the ability to get their money until they go through a legal process that will not culminate for approximately 60 days. Attorney Brandenburg explained that the rub in this whole matter is that FHA wants the County to let the contracts out for the entire job and the County does not have enough money to to that. All we have is $871,000 of the $2.4 million necessary for the contract. So, in fact, the County is signing a contract for $2.4 million when there is only $871,000 in the bank. The County Attorney continued that when this was discussed last week, consideration was given to inserting some language in the FHA contracts with these individual developers that would allow those contracts to lapse in the event that the SR -60 assessment issue was not approved. Director Pinto has been talking with the people from FHA, and he does not feel they will go along with that approach because in the event the contracts collapse, a certain amount of the' $81=1-000 would have been wasted on improvements put into the ground that could not be used. In order to avoid refinancing the notes that we have outstanding, we 47 BOOK 57 Ft;up510 JUN 20 1984