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C150153 Approval Letter
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C150153 Approval Letter
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Last modified
11/19/2009 11:30:02 AM
Creation date
2/21/2008 3:08:51 PM
Metadata
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Template:
Loan Projects
Contract/PO #
C150153
Contractor Name
Dolores Water Conservancy District
Contract Type
Loan
Water District
71
County
Dolores
Loan Projects - Doc Type
Approval Letter
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<br />. . <br /> <br />i # 01 <br /> <br />Dolores Water Conservancy District - Dove Creek Secondary Water Supply System <br />July 28-29, 2003 <br /> <br />Agenda. Item 211 <br /> <br />Water Riahts <br /> <br />DWCD is under contract with the Bureau of Reclamation to receive 5,120 acre-feet of annual <br />Dolores project yield for M& I purposes. At thepresent time the District has leased or contracted <br />only a small portion of this water supply. DWCD Will supply up to 300 acre-feet of its M & I water to <br />the Dove Creek Secondary Water Supply System project. <br /> <br />Proiect Description <br /> <br />Working with the Town's Secondary Water Supply Committee, DWCD focused its evaluation on the <br />feasibility of a "secondary water supply system.". The only available water supply for such a system <br />is the DWCD M&I water supply, and therefore this led to the natural conclusion of a DWCD <br />sponsored project. The citizens of Dove Creek could continue to Use their treated water supply for <br />outside irrigation purposes, but this would not address the desire of th~ Town to spur economic <br />vitality. The residents of Dove Creek cannot afford $2.40 to $3.00 per 1000 gallons for an irrigation <br />water supply. The secondary system gives them an affordable alternative and will add significant <br />value to the residential property in Dove Creek. The Town of Dove Creek does not have the <br />manpower and the financial means to develop and operate the secondary water supply system. <br />The DWCD will be able to use its own manpower to construct and operate the system. This makes <br />the project affordable clOd the best alternative. <br /> <br />DWCD would construct the water delivery system. This would include a new pumping plant to <br />deliver up to .2 cfs, a 5 to 10 acre-foot terminal storage reservoir located on the north edge of town, <br />32,000 feet of delivery pipeline (10"-8660 feet, 8"-7480, feet, 6"- 16,480 feet) and 307 individual taps <br />with water meters (% to 1,;,inch capacity), for supplying up to 10 gallons per minute per household. <br />Aerial mapping has been acquired and existing utility easements have been identified and <br />preliminary pipeline routes mapped. The system would be constructed using existing streets, <br />alleys and easements, at a depth of 3 feet. The Town plans to donate 10 acres for the reservoir <br />site. . <br /> <br />The Total Project cost, based on the engineer's opinion of cost, is estimated to be: <br /> <br />1. <br />2. <br /> <br />Construction <br />Engineering <br /> <br />TOTAL. <br /> <br />$ 892,227 <br />89.223 <br />$. 981,450 <br /> <br />Schedule - It is anticipated that the required 200 tap commitments would be obtained in June-July <br />2003. If this occurs, the project would be constructed in 2003. If tap commitments cannot be <br />obtained during this time frame, project construction would likely occur in 2004. No permitting <br />issues have been identified. <br /> <br />Status of Tap Sign-ups - The process of signing-up residential tap commitments has begun. A <br />public information meeting for the project was held for residents of Dove Creek on June 17,2002. <br />Also, the DWCD staff spent 6.5 hours in Dove Creek on June 30, 2002 to execute the first 75 tap <br />agreements. As of July 14, 2003 there have been 75 tap commitments obtained. A second sign- <br />Lip period is set for July 17, 12:00 p.m. to 6:00p.m. in Dove Creek. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the projecfis $981,450. The DWCD, on behalf of the Town, qualifies <br />for the Municipal Low Income interest rate. Staff is recommending a loan for a maximum amount <br />of $883,304 (approximately 90% of estimated project cost) for 10 years at an interest rate of 3.00% <br /> <br />Page 3 of 6 <br />
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