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<br />- <br /> <br />. <br />STATE OF COLORADO <br /> <br />C I :JJUf f":J <br /> <br />721 State Centennial Building <br />1313 Shennan Street <br />Denver, Colorado 80203 <br />Phone (303) 866-3441 <br />FAX (303) 866-4474 <br /> <br />MEMORANDUM <br />(UP.04/CL) <br /> <br />o <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br /> <br />) <br /> <br />Roy Romer <br />Governor <br /> <br />TO: <br /> <br />Members, CWCB <br /> <br />Ken Salazar <br />Executive Director, DNR <br /> <br />FROM: <br /> <br />John Van Sciver <br /> <br />Daties C, lile. P.E. <br />Director, CWCB <br /> <br />DATE: January 6, 1994 <br /> <br />SUBJECf: Agenda Item CFc (7a(2)), January 19, 1994, Board Meeting-- <br />Lower Arkansas Water Management Association (LAWMA) <br />Approval of a Construction Fund Loan in amount of $65,000 to Conduct <br />Feasibility Study. <br /> <br />BACKGROUND <br /> <br />LA WMA, headquartered in Lamar Colorado, has submitted an application for a loan <br />to fund a feasibility study. The purpose of the study would be to evaluate alternatives for <br />a substitute supply plan that would allow the Association's members to continue to use their <br />wells which draw from aquifers tributary to the Arkansas River. They have requested <br />$65,000 (4.4% interest rate), which is 100% of the estimated cost of the study. <br />LA WMA has been proactive in their work concerning a substitute supply and <br />augmentation water for their wells. They have already spent approximately $30,000 of their <br />own funds for engineering and legal evaluation of their system, and will be spending an <br />additional $30,000 in 1994 to complete initial testing of their wells. These activities are an <br />important part of the proposed feasibility work, funded directly by the entity. <br /> <br />DISCUSSION <br /> <br />Since LA WMA has already spent $30,000 on feasibility work to date and will invest <br />another $30,000 in 1994, a $65,000 loan from the CWCB for the proposed study would <br />amount to a 52% cost share, (The CWCB normally loans up to 50% of the cost of feasibility <br />studies. ) <br /> <br />LA WMA understands that it will be required to repay the cost of the feasibility study, <br />regardless of whether a viable alternative is found. If a construction project ultimately results <br />which is funded by a CWCB loan, the cost of this feasibility study can be rolled into that <br />loan. <br />