PROJC01289

• Contract/PO #: C153700
• Contractor Name: Norwood, Town of and Norwood Water Commission
• Contract Type: Loan
• Water District: 60
• County: San Miguel
• Bill Number: HB 93-1273
• Loan Projects - Doc Type: Contract Documents

.J

i.

(;. ;
~ :;,"
1...:..~~-

.

.

colorado Water Conservation Board
Od.ober 29, 1992
Page 3

The Town is reqnesting a loan from the CWCB at no interest. The
Town's cnrrent water rates are higher than those of surronnding
towns. The following is a simplified comparative rate study:

15000 GALLONS OF TREATED WATER

Norwood

$35.00
$61.00

Town:
Rnral:

Naturita.

$23.50

Nncla

$29.00
$30.00

$11.00

Town:
Rural:

Ouray

Ridgway

$~2.50

To pay back the $50;000 D~partment of Local Affairs loan, the rates
of Town Cl1stomers will increase by roughly $0.75 per existing tap
per mont.h. A cwCB loa.n ,)f $320..000 '''it.hout. interest '''01.11d fnrt.her
increase our user-' 5 rates by 8.pproximat.ely $2,70 per month. As we
previonsly st.ated in ou;: let.t.er to the CWCB dated September 29,
1992, t.he Town's :Ja.~_er r;:;.t.es increased by 1509" last year. The
water syst.em.- which oper0_tes sol2.1y from user !A-I-?S; was finally
able to operated in the black. The Town Degan saving towards the
$80..000 needed for the phase I project. The additional $2.70 per
month t.o payoff a CWCB loan wi.t.hout int.erest and $0.75 per mont.h
to payoff the Department. of Local Affairs loan will fnrt.her
increase the disparit.y between Norwood rates and those in
s\lrrounding communities.

The Town wO\lld be rel:Jctant to absorh the new loan at our present
water rates because of the condition of the ~own's present
distribution system, water line hreaks are be~oming more frequent
because the 17 year old system was improperly bedded, Our most
recent break left a major portion of our users withollt water for
t.hr~e days. Tools, equipment.. supplies.. contra.~t.ed lo.bor and
overtime are increasingly expensive. It costs a minimum of $1,000
every time our Town siren signals a break. The most re~ent break
cost more t.han that. There are over 30 miles or line in our
syst~m. Th~ ~own i~ c~placj_ng our liDes.. one 3 foot spction at a
tim8. Wherp 4-inch :PrJlJ.cers sh()l1.ld have oeen pIacpd; we haue 2-
inch reducers. Tho1.1sands of dollars need t.o be spent on our
v;::I.lves. As soon as -,.Jf?' renovate our treated t.1at.er tank, now in
d.isuse.. our ",~ist.ing soo,OOO gallon ra.nk n",,,,cls dr",ining and work.
We also ha'Te anothe~ tank in nur system which req\lires work. In
addit'.ion,_new EFA regl.~_~-3_riGns arA ~Qnt.inl1.ally adding t.o t.he cost of