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.. . '. Agenda Item 28c October 2 I, 1994 Page 2 The owner and operator of the Gurley Reservoir, the Fanners Water Development Company, has indicated, however, that they are reluctant to release water in the winter months because of concerns that the outlet works might be damaged by freezing. There is, in addition, a disagreemerit between the Town and the Company over the amount of storage actually available to the Town. The critical problem is to find a way of assuring an adequate supply of water to the Town during the winter months, I f winter releases from Gurley Reservoir are not technically feasible, then the best alternative appears to be sufficient raw water storage at another location. As reported at the September Board meeting, the Town's consultant, WestWater Engineering of Palisade, is preparing a feasibility study of raw water supply options. The study is expected to be completed by October 31, 1994. The feasibility study will evaluate several alternatives for winter water supply for the Town including the pipeline from the Gurley Reservoir and several alternative reservoir sites in addition to the Town's existing IO million gallon raw water reservoir. At the present time, it appears as if the most feasible alternative is a new raw water reservoir near the Town's existing water treatment plant. The current proposed capacity is 30 million gallons (about 90 acre-feet) and the estimated cost is $952,400. The previous authorization of $320,000 and the current request for an additional $630,000 would pay for essentially 100 percent of the project costs. While the staff has not yet had the opportunity to review the WestWater Engineering feasibility study, it is apparent that the Town is in immediate need of an adequate supply of water during the winter. There was genuine concern that water supplies would not be adequate in the next few months to meet the Town's requirements. Norwood would therefore propose to undertake construction of a project during the 1995 construction season upon authorization of supplemental financing. STAFF RECOMMENDA nON In addition to the immediate raw water supply problem, the Town is in the process of upgrading its entire water supply system. Several million dollars worth of improvements may be necessary over the next few years due to inadequate planning and inferior construction in previous years. While some of these improvements may be paid through tap fees on future development, much of the cost burden will fall on the current population of approximately 500 persons. The median household income in Norwood is $ 21,731 according to information provided by the Department of Local Affairs. For ,these reasons, the staff recommends the following: