C153773 Approval Letter - Laserfiche WebLink

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'tJ ~ 'J ~ N J Q ...... N 'I ~ J. i '^ ...... \\ '-- '^' -- . . , ---') ." ~, Agenda Item 29h October 21, 1994 Page 2 0"'0)" .... .". 1::"':'- f;;;,;'V I I Segment 2: A new raw water transmission line (9,500 feet) from the existing reservoir to a new.. raw water reservoir at an existing gravel pit, lining of the new reservoir, a pump station at the reservoir site, and an aer~tion system. The total estimated cost for Segment 2 is $1,955,000. , I The proposed reservoir (Morrison Reservoir #2) would have a capacity of about 500 acre feet and be located at a quarry site currently:operated by Cooley Gravel Company. Cooley would deed the reservoir site to the Town and participat~ in 10 percent of the costs of reservoir lining and the infrastructure required to deliver water as part: of a proposed 585-acre annexation of Cooley property. Cooley would be allowed to store up to 50 acre-feet of its own water in the reservoir. , . : The report indicates that the current population of Morrison is about 400 residents. In order for the project to be fmancially feasible, the Town will UIldoubtedly need to fmd other financial partners or customers for sale of the water ftom the project. The Town has held discussioris with the Denver Water Board, Evergreen Metropolitan District, and the Co~Iidated Mutual Water Company, all of whom have expressed some interest in the project and/or Morrison's water rights. . . . WRC Engineering submitted a preliminary draft feasibility study on September 30, 1994 (supplemented by a fax transmittal on October 20,1994). The staff has reviewed the draft study and has a number of questions and concerns regarding the proposed project as discussed in the following paragraphs. !f?!:~'. \ . , DISCUSSION Our review of the draft feasibilitY study indicates a number of questions and issues which the. staff feels should be addressed before a recqmmendation can be made with regard to the entire project as propo:;ed. These questions and issues relate to; metering and water conservation, the magnitude of the costs and the financial impact on the community, the use of the water supplies to be developed by the new reservoir, and, most importantly, alternativ6s to the project and the costs of those alternatives relative to the costs of the proposed project. i I Metering and Water Conservation I In .1981, the Town obtaine~ a Construction Fund loan for the construction of Morrison Reservoir #1. The amount of the 10Jn was $350,000 (at 4% for 40 years). The loan contract required the I installation of water meters, on each individual service in the Town. It is the staffs understanding that the Town is not using tpe water meters as a basis for water charges and instead is using a fo rm of flat rate water pricing. ~ection 1.3.3 d., of the Construction Fund Guidelines states that: I "All proposed projects: should incorporate operational, management, conservation, and system maintenance measures which represent the most efficient use of water I supplies. The concept of payment for water on a measured basis should be included where applic~ble." I