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<br />, <br /> <br />Meetings <br /> <br />. <br /> <br />Since the June 16 Special Board Meeting, CWCB staff has met with a representative of RMI on <br />June 22 in Denver and with representatives from both RMI and the PMRCA on July I in Aztec, <br />New Mexico. These meetings have been helpful in better defIning the assumptions for the loan, the <br />positions of the three parties, and the fInancial limitations we are confronting. <br /> <br />Planning Assumptions <br /> <br />Since PMRCA has little in the way of funds to contribute to the completion of the project, the <br />current proposal is that RMI will finance about $70,000 and PMRCA will contribute about $16,000 <br />to the project cost. The CWCB Construction Fund loan would increase from $206,000 to about <br />$258,000, or 75 percent of $344,000. <br /> <br />In addition, RMI is proposing to construct a reverse osmosis (RIO) treatment facility at a cost of <br />about $150,000 to provide very high quality process water to the Red Cedar Gas Company whose <br />plant is located about four miles from the Pinon Mesa development. RMI would purchase raw <br />water from PMRCA, treat it and deliver it to Red Cedar. The revenues from the sales to Red Cedar <br />would be used to recoup RMI's total investment including the $70,000 of construction costs for the <br />raw water system. <br /> <br />The sales of raw water from the PMRCA reservoir to RMI would be an important part of <br />PMRCA's revenue stream. In addition, a part of the treated water from the RIO plant may be used <br />to provide domestic water to PMRCA and other area residents by filling containers and hauling the <br />water from the plant to residences for storage in cisterns. The distribution system that is part of the <br />project would !lQt be used for in-house water supply. After RMI has recovered its investment in the <br />raw water project and the RIO plant, ownership of the plant may be transferred to PMRCA. <br /> <br />. <br /> <br />One of the major questions is the actual rate of development that may take place at Pinon Mesa and <br />the number of new taps that may be sold over the next few years. There are 52 platted lots in the <br />development but the La Plata County Land Use Department will not allow subdividing until an <br />approved potable water supply system is in place. The county would, however, allow property <br />owners to haul drinking water and use individual cisterns for storage. Charles Palmer, the president <br />of the PMRCA has indicated that as many as 10 or 12 property owners could build and become <br />members of the Association under this type of arrangement. <br /> <br />Staff has reviewed the water rights analysis done by Wright Water Engineers in the January 1997 <br />feasibility study and discussed the analysis with Eric Boos of Wright Water. The feasibility study <br />did not include a detailed operation study for the 1996 water right but instead relied upon the daily <br />flow record of the Florida River at the Bondad gage for the years 1968 to 1983. The record <br />indicates that sufficient water would be available at the Bondad gage (about 4 miles below Pinon <br />Mesa) in each of those years. If adequate flows were not available for any length of time, PMRCA <br />and RMI would be dependent upon the 7.7 acre-foot reservoir, which may be adequate for a few <br /> <br />2 <br /> <br />, <br />