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<br />~ <br />Ii <br />I" <br />" <br /> <br />Agenda Item 12b <br />July 7, 1994 <br />Page Two <br /> <br />the owner and operator of the reservoir, is reluctant to release water in the winter months due to <br />possible freezing problems with the outlet valve from the reservoir. <br /> <br />The Town is therefore proposing a new raw water reservoir instead of the pipeline. Releases <br />from Gurley Reservoir would be transmitted via the existing ditch system and stored in the new <br />reservoir prior to treatment in the filtration plant. Sufficient water would be stored in the new <br />reservoir to meet municipal needs through the winter months. <br /> <br />Status of Current Activities <br /> <br />Since the new reservoir represents a significant change in the scope of the proposed project, <br />the CWCB staffis working with the Town of Norwood, the Norwood Water Commission, and the <br />engineering consultant to document the revisions. The staff is requesting an addendum to the <br />. November 1991 feasibility study to describe the raw water reservoir project in accordance with the <br />Construction Fund Guidelines. We are asking that the addendum also address two questions which <br />have arisen previously, i.e., the adequacy of existing municipal water rights and the financial <br />feasibility of the project. <br /> <br />It is anticipated that the Town may request a loan from the Construction Fund for 50 percent <br />of the additional feasibility work. We are awaiting a scope of work and a cost estimate from the <br />engineering consultant. <br /> <br />Recommendation <br /> <br />It is expected that the CWCB portion of the additional feasibility study costs will be less than <br />$10,000, the amount at which specific Board approval is required. It is the intention of the staff then <br />to proceed with a loan, at such time as we receive a request from the Town of Norwood, for no <br />more than $10,000 to finance 50 percent or less of the costs of an addendum to the existing <br />feasibility study. Proposed repayment terms would be ten years at two percent interest. <br /> <br />cc: June Estep, Mayor of Norwood <br />Ralph Weaver, Norwood Water Commission <br />Ken Charles, DOLA <br />Bill Hamann, WestWater Engineering <br /> <br />12bJul <br /> <br /> <br />WEG/vt <br />