PROJ02071

• Contract/PO #: C153686
• Contractor Name: Red Mesa Ward Reservoir and Ditch Company
• Contract Type: Grant
• Water District: 0
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

Discussion
As of November of this year, there are ten authorizations for funding that are three years
or more past the date of authorization and are not yet under contract. Staff has evaluated each of
the authorizations and discussed the status of the projects with the project sponsors and their
consultants. The results of these evaluations along with the staffiecommendations relative to de-
authorization of project loans and their inclusion in the Project Loan De-Authorization
recommendation to the Legislature are summarized in the following:

1. Animas~La Plata Project - Ridges Basin Dam - The State Legislature authorized $5,600,000
in 1989 from the Construction Fund to be used for the construction of the Ridges Basin dam
as part of the Animas-La Plata project. Recently, the cost sharing agreement between the
project participants was terminated. The Bureau of Reclamation will continue to pursue
construction of the project without the need for financial participation by the State of
Colorado.

2. Northern Colorado Water Association - Water Rights Purchase - The CWCB approved a
Construction Fund project loan of $900,000 to the Association in 1998 for the purchase of
water rights, wells and land. Staff has spoken with Ms. Joann Jordan, Secretary-Manager of
the Association (October 10, 2001 - John Van Sciver) who has stated the Association has
been unsuccessful in land acquisition and does not foresee negotiated agreements completed
in the near future. She stated that the project loan should. be de-authorized and the
Association will re-apply if necessary.

3. Pagosa Area Water and Sanitation District - Stevens Lake Reservoir Enlargement - The
CWCB approved a Construction Fund project loan of $1,912,000 to the District in 1993 for
the enlargement of the Stevens Lake Reservoir. The District has decided not to seek
continued authorization of this proj ect. (letter attached)

4. Powderhorn Metropolitan District'- Robbins Reservoir Diversion Structure Rehabilitation -
The CWCB approved a Construction Fund project loan of $525,000 to the District in 1997
for therehabiiitation of thtl Robbins. Reservoir diversion Structure. Staff has spokehwith Mr.
Steve Bailey, President of the District (October 10,2001 - John Van Sciver) who has stated
the District has not proceeded with the project and the loan authorization should be de-
authorized and the District win re-apply if necessary.

5. Redmesa Ward Reservoir and Ditch Company - Redmesa Ward Reservoir Rehabilitation and
Enlargement - The CWCB approved a Construction Fund project loan of $2,250,000 to the
Company in 1995 for the rehabilitation and enlargement of RedmesaWard Reservoir. The
Company has found the project to not be feasible because of water rights issues and has
requested de-authorization ofthe project loan. (letter attached)

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