PROJ01995

• Contract/PO #: FS0006X
• Contractor Name: Pagosa Area Water and Sanitation District
• Contract Type: Loan
• Water District: 0
• County: Archuleta
• Loan Projects - Doc Type: Approval Letter

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Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLORADO

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August 6, 1999

Bill Owens
Governor

Greg E. Walcher
Executive Director, DNR

Peter H. Evans
Director, CWeB

Ms. Carrie S. Campbell, Manager
Pagosa Area Water and Sanitation District
P.O. Drawer 4610
Pagosa Springs, CO 81157

Re: Pagosa Area Water and Sanitation District Loan Authorization and Feasibility
Studies

Dear Carrie:

Thank you for your letter of July 27 regarding the Pagosa District's Stevens Lake project
and other water project planning activities. The Colorado Water Conservation Board staff
will recommend to our Board that the Stevens Lake project not be deauthorized this year
since the District is in the process of updating and completing the feasibility study. It is
not necessary to submit the feasibility study this fall if the District is not intending to
apply to the Board for additional funding until the year 2000.

We would, however, encourage you to submit the report well in advance of the
Noyember2000 Board meeting (assuming funding'is required in 2001) or prior to the
time you intend to draw funds from the existing authorization. If no additional funding is
requested, the District may draw on the existing authorization at any time following
acceptance by CWCB staff of the feasibility study update and the execution of a loan
contract.

Regarding the $5,000 feasibility study grant, you are correct in noting that it was intended
for the Martinez Creek study. From your letter, however, it appears that the Martinez
Creek project may be postponed for the next five to ten years. If that is the case, the
District may want to consider delaying the detailed feasibility work for Martinez Creek
until such time as you actually request CWCB financing. While this would entail
cancellation of the $5,000 Small Dam Site grant, it would reduce the immediate cost of
the feasibility work.

If you choose to postpone the Martinez Creek study, I would suggest that we close out
the purchase order for this grant. We could then request a Small Dam Site grant of $5,000
(or 50 percent of the cost of the study, whichever is less) for the Stevens Lake feasibility
study. The request could be presented at the September1999 Board meeting if this

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