The Buffalo Municipal Reservoir Project involves development of a
municipal supply storage reservoir in the Clear Creek Basin west of
Buffalo. Buffalo's existing water supply is diverted from Clear Creek
about six miles west of the city. After project completion, releases
from the reservoir will supplement Clear Creek flow when the direct flow
cannot fulfill Buffalo's water supply requirements.
The Level II - Phase I report was completed in March, 1989. The report
concluded that the preferred development option included a dam and
reservoir at the Lower Tie Hack site on South Clear Creek, a tributary
of Clear Creek. The recommended reservoir size is 2425 acre feet and
the estimated cost of the dam and reservoir was $10,650,000. In
addition, the report indicated that installation of a $975,000
hydropower generation unit at the downstream end of the city's water
supply pipeline could be economically advantageous. The hydropower unit
is addressed as a separate project, but construction of both components
is required if the total project is to be economically feasible. The
report also noted that the feasibility of the project would depend on
the successful transfer of Buffalo's existing 1933 filing for 1640 acre
feet from Little Sourdough Creek to the dam site. This transfer was
accomplished in 1990.
In 1992, the WWDC and city completed the project agreement, note and
mortgage needed before the city could access project funds. The city
has negotiated the necessary agreements with the Big Horn National
Forest relative to the completion of the environmental impact statement.
The Final Environmental Impact Statement has been published and no
protests have been received. The final design has been completed and
construction bids will be opened and reviewed in late January, 1996.
The Forest Service special use permit and the U.S. Army Corps of
Engineers 404 permit are anticipated in late January or February, 1996.
Construction will commence in June, 1996, with completion in November,
1997. The project budget has been impacted due to delays in permitting
and required project mitigation.
RECOMMENDED LEGISLATIVE ACTION:
The WWDC recommends that the project appropriation be increased from
$10,650,000 to $13,700,00 or $3,050,000. The financing plan would
remain a 67% grant and a 33% loan with an interest rate of 4% and a term
of 50 years. In addition, loan payments would be deferred for a period
of 5 years. Please note, the appropriation may be amended to correspond
with the bids received.