PROJ01958 ‎(2)‎

• Contract/PO #: C150131A
• Contractor Name: Paonia, Town of
• Contract Type: Loan
• Water District: 0
• Loan Projects - Doc Type: Approval Letter

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Colorado Water Conservation Board

Department of Natural Resources

721 State Centennial Building
1313 Sherman Street
Denver, Colorado 80203
Phone [phone]
FAX [phone]

STATE OF COLC)RADO

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MEMORANDUM

Roy Romer
Govemor

(upDATED November 18, 1994)

James s. Locbhead
Execllltive Director, DNR

TO:

Colorado Water Conservation Board Members

Daries c. Lile, P.E.
Director, CWCB

FROM: John Van Sciver

DATE: October 15, 1994

SUBJECT: Agenda Item 291., November 3-4, 1994, Board Meeting--
The Town of Paonia
Approval of a Construction Fund Loan in amount of $750,000 to rehabilitate
an existing reservoir, or to construct a new raw water storage reservoir.

BACKGROUND

The Town of Paonia (located in Delta County), has submitted an application for a loan to
rehabilitate an existing reservoir, or to construct a new raw water storage reservoir. They are
requesting a loan in the amount of $750,000 (90% of the estimated total project cost).

The project is needed to store excess water from the Town's springs, which comprise the
primary water supply. The stored water would be available for use in the late summer when
demand is increased and flow from the springs is reduced.

The Town has recently repaired the Todd Reservoir (which was evaluated as part of the Small
Dam Site Reconnaissance Study) to obtain approximately 110 acre feet of storage. However,
additional storage is necessary to meet the projected demands of the Town.

The Town has hired Consolidated Consulting Services (Joan Fagan, P.E.) to perform a
feasibility study. A scope of work for that study is currently being developed for approval by
CWCB staff. The feasibility study will be funded, in part, through a grant from the Small Dam
Site Reconnaissance Program.

The capacity of the proposed new reservoir is approximately 100 acre feet. At a unit cost of
$8,250 per acre-foot, this appears to be an expensive option. It is not presently known what
additional volu~e would be gained through expansion of the existing reservoir.