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Town of La Veta Agenda Item 26a <br />January 13, 2012 (Updated January 31, 2012) <br />Page 2 of 5 <br />toe of the dam, lack of access to the intake tower and inoperable intake valves controlling flow to <br />the outlet works. The restriction has reduced the storage capacity by an estimated 17 AF (from 86 <br />to 69 AF). <br />After recently performing an assessment of its raw water system, the Town identified three <br />additional projects that would improve its raw water storage system. Most notable is the <br />rehabilitation of South Lake Reservoir (South Lake), which is beginning to show signs of seepage <br />and outlet control issues. The Town wants to remove the restriction on North Lake as quickly as <br />possible, while being proactive in addressing the needs of South Lake in an attempt to prevent a <br />future restriction order. <br />The Town, which qualifies as a low- income municipal borrower, has formally requested a restricted <br />reservoir interest rate reduction of 1 %, in accordance with CWCB Financial Policy #7. Currently, <br />the average municipal water bill for the Town is 125% of the state average according to 2006 <br />Department of Local Affairs (DOLA) statistics. The rate reduction will reduce the Town's debt <br />obligation; thereby, strengthening its position to address future water storage improvement projects. <br />Loan Feasibility Study <br />The loan feasibility study titled "Storage Feasibility Report" and dated October 25, 2011, was <br />prepared by Chris Manera, P.E. from Colorado River Engineering, Inc. in Rifle, Colorado, with <br />assistance from the Town of La Veta. Legal assistance was provided by Hank Worley of <br />McDougall, Woldridge & Worley. The study was prepared in accordance with CWCB guidelines <br />and includes preliminary engineering and an engineer's estimate of probable cost which was used to <br />estimate total project cost. <br />Town of La Veta <br />The Town, situated near the western limits of the Arkansas River Basin (Colorado Water District <br />16), was established in 1886. It operates its water service through a Water Enterprise, established in <br />2008. Revenue is generated from water sales and development fees. The water service area is <br />limited to the Town boundaries, and includes a population of approximately 800, with 415 <br />households and a total of 580 equivalent residential units (EQRs). <br />The Town's water system includes a one million gallon - per -day water treatment plant (WTP), two <br />storage reservoirs (North Lake and South Lake), a pipe distribution network, and a 15 -inch steel <br />supply pipeline with a diversion headgate located along the River. The supply pipe delivers raw <br />water to the Town, where a network of valves is used to fill the lakes or convey raw water directly <br />to the WTP. When not under restriction, the Town has a combined storage capacity of 313 AF <br />between North Lake (86 AF) and South Lake (227 AF). The Town delivers an average of 209 AF <br />annually. <br />Water Rights <br />The Town has an interest in four direct flow water rights with appropriation dates dating as far back <br />as 1863. The Town utilizes these direct flow rights, in conjunction with its two storage rights, as <br />the supply source for treating and delivering municipal water to its customers. The Town's water <br />rights are decreed for irrigation, municipal, domestic, fire and augmentation. Table 1 provides a <br />summary of the Town's water rights. <br />