PROJ01988 ‎(2)‎

• Contract/PO #: FS0006X
• Contractor Name: Pagosa Area Water and Sanitation District
• Contract Type: Loan
• Water District: 0
• County: Archuleta
• Loan Projects - Doc Type: Feasibility Study

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Mr. Jack DeLange
April 30, 1996
Page Three

Finally, it would be advisable to add somewhere in the supplemental report, possibly in the
introduction or in a separate chapter, a discussion of the alternative reservoir sites which the
District has considered in the last few years and the rationale for the selection of the Stevens
Lake enlargement.

Hopefully some of the items mentioned above are a part of the feasibility work for the
Martinez Creek project or the masterplan which we understand are currently in progress.
Much of this information would, in any case, be useful to us in evaluating any requests for
funding which might be submitted by the District in the future.

The following is a brief summary of the major points of discussion from our meeting last
Thursday:

1. The project sponsor and the entity proposing to contract with the CWCB for the
Stevens Lake enlargement will be the PA WSD (and any water enterprise of the
PA WSD). The San Juan Water Conservancy District will not be a party to the
contract for the CWCB loan.

2. It is the intent of the District to begin construction of the Stevens Lake
enlargement as described in the 1992 CDM report in the fall of 1997 or, in the event
of a low-runoff year in 1997, in the fall of 1998.

3. The District will provide the CWCB staff with a draft of a Stevens Lake
supplemental feasibility study in sufficient time to prepare an informational report to
our Board later this year or early next year.

4. The repayment period of the loan for the Stevens Lake enlargement will be for ten
years as authorized in the 1993 Construction Fund legislation ( HB 93-1273).

5. The board of directors of the District will be asked to approve a resolution to enter
into a contract with the CWCB and both the District and the water enterprise will be
parties to the contract. (A draft resolution will be sent to you by Jan Illian.)

6. As security for the $1,912,000 loan authorized in HB 93-1273, the District is
willing to pledge water system revenues and Stevens Lake Reservoir.

7. We will send you a revised contract in the latter part of this year.

We want to thank you again for meeting with us and informing us as to the plans of the
PA WSD for providing water service to the Pagosa Springs area. We look forward to the
opportunity of participating in these projects.

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