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<br />. <br /> <br />COLORADO WATER CONSERVATION BOARD <br /> <br />Town of Norwood <br />Water Project <br />January, 1993 <br /> <br />Introduction <br /> <br />The Town of Norwood has made an application for a $320,000 loan for <br />improvements to its town and rural water system. Actually, the rural portion of this water <br />system is operated and maintained by the Wright's Mesa Rural Water Users Association, <br />but an agreement is pending to combine both of these entities into a single entity system. <br />The total number of people served by the Town rural system is currently about 1,500. <br /> <br />Problem <br /> <br />. <br /> <br />The Town of Norwood has experienced water shortages during the high demand <br />period in recent years which has caused it to restrict outside watering, increase water rates <br />to reduce usage and to put a moratorium on the sale of new water taps. In addition, the <br />Town also now needs to expand the capacity of its water treatment plant. <br /> <br />Proposed Project <br /> <br />Westwater Engineering, a consulting firm in Palisade, Colorado, has prepared a <br />feasibility study outlining the problems with the Town's existing water system. In short the <br />Town's existing system is deficient in raw water supply, treatment capability, treated water <br />storage capacity and suitable pressures in most of the distribution lines. The total estimated <br />cost to correct the system is $1,400,000 and the Town's consultant has prioritized the needs <br />and determined that the most critical of these are: (1) A raw water pipeline from Gurley <br />Reservoir to the treatment plant (2) improvements to the water treatment process and (3) <br />renovation of an existing water storage tank. These items would constitute the first phase <br />of a three phase program to up-grade the water system and the estimated cost of phase I <br />is $700,000. <br /> <br />Proposed Financing <br /> <br />The Town is requesting a $320,000 twenty year loan from Colorado Water <br />Conservation Board (CWCB) at zero percent (0%) interest as partial funding for the new <br />raw water pipeline and it has applied for a $300,000 grant from the Department of Local <br />Mfairs and will provide $80,000 of its own funds in order to construct phase I of this project. <br />. The justification offered for a 0% loan is as follows: <br />