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Harry C. LaBonde, Jr., PE, Director 
6920 Yellowtail Rd, Cheyenne, WY 82002 
Phone: 307-777-7626 

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1996 LEGISLATIVE REPORT
Project Reports

    9. PROJECT:Buffalo Municipal Reservoir
LEVEL:III
SPONSOR:City of Buffalo
LOCATION:Johnson County
PROGRAM:New Development
  
EXISTING LEGISLATION:
Purpose Chapter Session Account Appropriation Due Date
Level III 28 1992 I $10,650,000* 1997
*67% grant, 33% loan (4%, 50 years, 5 year deferral)

PROJECT INFORMATION:
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.

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