CT2016-2004 Approval Letter

• Contract/PO #: CT2016-2004
• Contractor Name: Parkville Water District
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Approval Letter

Parkville Water District Agenda Item 23c
September 15-17, 2015 Board Meeting(Updated September 18, 2015)
Page 2 of 8
Background
The District is located at the headwaters of Arkansas River in Lake County and provides water service
to 5,000 people in the City of Leadville and surrounding area. The District's service area is
approximately four square miles and serves 1,964 residential and 372 commercial taps.
The Evans Reservoir Bypass Flume, constructed around 1904, is a wooden trough measuring 6' x 5' x
450', including inlet and outlet structures. The flume carries Evans Creek contaminated water around
Evans Reservoir. The primary problem with the water carried by the flume is high turbidity levels that
cannot be processed by the District's water treatment plant below; although heavy metal
contamination from upstream mines is also a concern at times. The flume passes over the abutment of
the dam.
Heavy runoff events in the last several years have caused the condition of the flume to become an
urgent concern, along with increasing maintenance and repair costs on the order of $10,000 annually.
8,000 acres of deep snow must be channeled through the flume during spring runoff each year. In the
spring of 2014, sudden runoff combined with spring rains, resulting in an unusually high snow melt. The
flume was nearly overwhelmed and the portion that passes over the abutment of the dam failed.
Serious erosion of the dam resulted, but emergency repairs prevented further damage and
contamination of the water supply. Runoff in 2015 was unusually high as well, due to the amount of
snowfall in April and unusually warm temperatures in June, necessitating emergency action again.
The two primary objectives of the project are to protect water quality for the City of Leadville, and to
prevent failure of the Evans Reservoir dam.
Loan Feasibility Study
Elise Bergsten of Balanced Management Services Co. prepared the Loan Feasibility Study, titled
"Feasibility Study - Evans Reservoir Bypass Flume Replacement" dated August 2015. Technical support
was provided by Steven Maly, P.E., of W.W. Wheeler Et Associates, Inc. The study includes an analysis
of alternatives and a construction cost estimate. The feasibility study was prepared in accordance with
the CWCB guidelines.
Borrower - Parkville Water District
In 1879 the City of Leadville granted a franchise to the Leadville Water Company, which acquired
direct flow and storage water rights, constructed raw water storage facilities, and constructed a
distribution system that served Leadville for approximately 85 years. The District, a Title 32 Colorado
Special District formed in 1964, subsequently took over the operations of the Leadville Water Company.
The District has a board of five Directors that have the power to set rates, incur debt and enforce
water service assessments. The District's revenues come from monthly metered service charges and
connection charges. The District held an election in 2010 to allow collection of revenue without being
limited by the TABOR amendment, and the authority to take on debt.