From: Waugh, Doug

Sent: Wed Jul 29 09:14:47 2009

To: SRFrule

Subject: ARRA funding and SRF Loans

Importance: Normal

I would like to thank the DEQ SRF Program staff for their hard work in allocating the ARRA funding recently received from the federal government. The SRF loan received by CCSD No.1 and initially funded from the ARRA will help provide much needed sanitary sewer service to a portion of Clackamas County that has long wanted this service. In addition, the principal and interest forgiveness will significantly reduce the assessment payments to be made by benefiting property owners, keeping more money in the local economy.

My only concern at this time is that this project is currently projected to cost $12.8 million in total. Clearly, CCSD No.1 will need additional allocations to this first loan to assure successful financing of the entire project. So here is my question: Does the source of funds for the initial allocation under this SRF loan agreement have any impact on the ability of CCSD No. 1 to receive additional allocations to this agreement from other funds available to the SRF program? Is this initial allocation, funded by the ARRA, a “one-time” thing and once spent, requires that either the funded project be completed or, if not, be resubmitted to the SRF program for another review and ranking in order to obtain the remaining funding necessary?

I firmly believe that after this project was properly submitted, considered, and ranked according the rules of the SRF Program that it is like any other project funded by the SRF program, regardless of the source of funding for the initial allocation to the project, and is able to continue receiving additional allocations from the SRF program as allowed by those rules.

Is this correct? Thank you in advance for your consideration.

Doug Waugh

Finance Manager

Water Environment Services, a Department of Clackamas County

503-742-4564