C150152 Feasibility Study

• Contract/PO #: C150152
• Contractor Name: New Castle, Town of
• Contract Type: Loan
• Water District: 39
• County: Garfield
• Loan Projects - Doc Type: Feasibility Study

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Social and Physical Impacts

This project will resolve the potential of severe water rationing of potable water to
the municipal water customers, and will assure the continued practical operation of
the currently existing municipal water system. The project will have minor
physical impacts, once construction is complete. The construction of the system
may allow for new recreational facilities in the form of trails to be offered to the
citizens of New Castle and the surrounding community.

Conclusions

1. The Town of New Castle is an incorporated entity in the State of Colorado with
the ability to enter into a contract with the CWCB for the purpose of obtaining a
Construction Fund loan.

2. Rights-of Way easements are adequate for the construction of this project.

3. The project would provide for the continued delivery of potable water to
citizens of the Town of New Castle even in the case of severe drought.

4. The total estimated cost of the project is just over $1 million and this will be
financed, in part, by in- house financing, in-kind services, a grant from the
Colorado Department of Health, a engineering grant from the CWCB and a
potential grant from the Colorado Department of Local Affairs Energy Impact
program. The Town of New Castle is applying for a $700,000 loan from the
CWCB Construction Fund for the amount not covered by the other secured
funding.

5. The Town of New Castle is eligible for a loan from the CWCB because the
project is necessary to avoid unreasonable loss of raw water resources in a
drought situation and to provide for the human health and well-being of our
citizens. This current emergency condition is not the result of negligence in the
operation or maintenance of the New Castle Water System infrastructure.

6. The project is technically and financially feasible.

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CFLA902