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~- . STATE OF COLORADO 721 Stale Centennial Building 1313 Sherman Streel Denver. Colorado 80203 Phone (303) 866-3441 FAX (303) 866-4474 MEMORANDUM . COLORADO WATER CONSERVATION BOARD Department of Natural Resources Roy Romer Govemor TO: Members, CWCB John Van Sciver --:jWVJ t2p,Jr~/ <?:/; I G... Danes C. Lite, p,e:, Diredor. ewes FROM: € 3iD 4d...4 (/ DATE: July 9, 1993 SUBJECT: Agenda Item 5c, July 22-23, 1993, Board Meeting-- Military Park Reservoir Co., Emergency Loan Request BACKGROUND The Military Park Dam was inspected in the fall of 1992 by Mr. Jim Norfleet of the State Engineer's Office, Montrose. Jim found evidence of leakage into the outlet pipe which was later discovered to be the result of several holes in the pipe adjacent to the gate valve. While temporary repairs were being made it was discovered that the rest of the corrugated metal outlet pipe was also in very bad condition. Because the pipe in such poor condition, and because failure of the pipe could easily lead to total failure of the dam, the company decided to replace the entire pipe in 1993. The company submitted a loan application in February 1993, and had plans and specifications for the replacement of the outlet prepared by Mr. Ed Currier, P.E. The plans and specifications have been reviewed by the State Engineer's Office, and given tentative approval. The repair cost estimate is $30,000. The loan package has been reviewed by the CWCB staff, and the company has been sent a table of payment options indicating annual payments in the range of $2000 to $2500. A copy of the table is attached. DISCUSSION The company has been asked to hold a formal vote to confirm their interest in, and obligation for the proposed Emergency Loan of $30,000. Although the outlet pipe has not completely failed, the chances of its total failure are very great within the next year. If total failure does occur, the dam would probably