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<br />Town of Paonia - New Reservoir <br /> <br />In November 1994, the Board approved a Construction Fund loan to the Town ofPaonia <br />for $600,000 at 4.0 percent for 30 years for a new reservoir. The loan was subsequently <br />authorized in HB 95-1155. One of the conditions of Board approval was the completion <br />of a feasibility study. <br /> <br />A reconnaissance study of a broad range of water supply alternatives was conducted in <br />1995. A draft report was submitted in July 1995 but was not accepted as meeting the <br />requirements of the CWCB Construction Fund Guidelines. <br /> <br />Early this year, the Town selected GEl Consultants of Englewood, along with two other <br />firms, to conduct a comprehensive feasibility study of alternatives fot the expansion and <br />improvement ofthe Town's raw water supply system. That study is now in progress and <br />is expected to be completed in January of next year. The Board awarded the Town a <br />$10,000 Small Dam Site planning grant for the study. <br /> <br />Paonia obtains its entire water supply from 26 springs on the mesa to the south and east <br />of the Town. The dry-year yield of these springs is unknown and only 200 acre-feet of <br />raw water storage are available. Staff believes that the current feasibility study is <br />extremely important since little previous planning work has been done and since the <br />Town may be vulnerable to water supply shortages in an extended drought. <br /> <br />The Town is requesting that the project not be deauthorized in view ofthe ongoing <br />feasibility work. Please see the attached letter from Mayor Richard Gentzler. Staff <br />recommends that the Town ofPaonia New Reservoir Project, as authorized in HB 95- <br />1155, not be deauthorized and that the Board and the staff review the status of the project <br />agam m one year. <br />