PROJ01898 ‎(2)‎

• Contract/PO #: C153700
• Contractor Name: Norwood, Town of and Norwood Water Commission
• Contract Type: Loan
• Water District: 60
• County: San Miguel
• Bill Number: HB 93-1273
• Loan Projects - Doc Type: Feasibility Study

~

Town of Norwood
Box 528 Norwood, CO. 81423
[phone]

-
-

October 29, 1992

Colorado Water Conservation Board
Department of Natural Resources
721 State Centennial Building
1313 Sherman Street
Denver, CO 80203

RE: Loan Request of Town of Norwood (the "Town") for Improvements
to Raw Water Delivery Facilities of Water System for the Town
and Wright's Mesa Rural Water System ("WMRWS")

Dear Members of the Board:

This let ter is to provide further information about the Town's
application to the Colorado Water Conservation Board ("CWCB") for
a loan to improve the raw water components of the water system
serving the Town and WMRWS. Engineers have outlined three-phases
of improvements t.o the wat.er system. Phase I of our proposed
three-phased project is the most cri tical for meeting existing
needs. The Town is pursuing funding for only Phase I improvement.s
at this time. Phase I, which in its entirety will cost $700,695,
consists of three steps.

STEP A) Upgrading the Town's Treat.ment Plant and changing
filters.

STEP B) Renovating an existing t.reat.ed wat.er storage tank.

STEP C) Laying 4.5 miles of pipeline from the Gurley
Reservoir to t.he Town's treatment plant.

The Town is requesting a loan from the CWCB only for Step C of
Phase I.

The Department of Local Affairs has confirmed that the Town is to
be awarded a $250,000 grantj$50,OOO loan package to be signed in
November, 1992. The $50,000 loan to be paid over 15 years at 5%
interest. In addition, the Town and WMRWS propose to use $80,000
of local funds for Phase I work. A $320,000 loan for 20 years at
o percent (0%) interest from CWCB would provide the funding needed
for Step C: the vi tal raw water component of t.he improvement
project.

By way of background, the raw water which supports the TownjWMRWS
domestic water system is irrigation water contained in the Gurley
Reservoi r, owned by the Farmers Water Development Company ("FWDC"),
a private irrigation company. The Town owns 60 shares of FWDC
water. Traditionally, the rural irrigators and the Town have