PROJ00159

• Contract/PO #: C153305
• Contractor Name: Dolores Water Conservancy District
• Water District: 0
• County: Dolores
• Bill Number: XB 99-999
• Loan Projects - Doc Type: Feasibility Study

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water to Towaoc will be made through the Cortez - Towaoc pipeline. As the town

is not considering construction or operation of its own treatment plant, this

service is assumed to be provided at the district's central facility. An average

annual supply of 1,000 acre-feet is reserved for the Ute Mountain Indian Tribe at

Towaoc, which is required to pay its proportionate share of costs for project

works. Repayment of the construction costs allocated to Towaoc's share of the

Cortez - Towaoc pipeline will be handled separately from the DWCD agreement.

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In present day dollars, the total capital cost for the project is $15.3 million

while annual operation and maintenance is expected to cost about $662,000 per

year when the facilities are operating at ultimate capacity. A repayment schedule

has been prepared assuming an initial service charge of $0.52 per 1,000 gallons

of water sold (see Table 7-1). This rate is comparable to the fees being charged

by other service entities within the district. The $0.52 service~harge covers

treatment of water and primary transmission to supply the distribution systems of

the individual entities. The federal government's participation in the district

project has been estimated at $12,000,000 with $10,000,000 of this amount derived

from loan proceeds and $2,000,000 from grants. It is hoped that a larger percentage

of the federal participation will be obtainable in the form of grants. Obviously,

the feasibility of the project is enhanced as the grant portion of the funding is

increased. The State of Colorado is anticipated to contribute $1 million to the

project in the form of a low-interest loan.

Federal grants and loans are available to areas and communities burdened with

high unemployment, low family incomes, or high user rates necessary because of

the financial indebtedness of service entities. The DWCD is part of the Four

Corners Economic Development Region and as such, is eligible for public assistance

under the "Public Works and Development Act" of 1956. Median family incomes in

the two-county area for 1970 and 1975 were:

County Median Family Income'" 11)
1970 1975
Dolores $7,760 $10,248
Montezuma $7,317 $ 9,734

"'Chapter III, pages 62, 80 & 85.

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