FOR IMMEDIATE RELEASE:
Monday, June 27, 1983
FROt\1
Bill
Armstrong
US.
SENATOR FOR
COIDRAIX)
CONTACT:
Lee J. Stillwell
Barbara Pardue
Julie Chavarrie
202/224-0022
ARMSTRONG MOVES OLATHE WATER BILL
Washington, D.C. -- Aiming to "preserve and protect the Town of Olathe's water supply," U.S. Sen. Bill Armstrong (R-Colo.) today introduced a bill to
ea legal technicality that is keeping the Town from modernizing its
municipal water system.
The system was built on land acquired from the federal government in 1919, but the agreement provided that Olathe could not re-sell the land. According to Armstrong, this provision also acts as an unintended prohibition against u~ing the land as collateral for a loan to repair the system.
"It's a paradox. The original agreement was designed to make sure the land was used only for water development, and now Olathe can't mortgage it to make that purpose possible. The land is the only asset the Town can mortgage to raise enough funds for the improvements," Armstrong said.
This legislation will resolve the problem by allowing Olathe to mortgage
1~ - - - - the land for the specific puf-Pese--e-f--ma4-R-t€nance and mederniz-a-t.ien of the system. Then, in 1994, all restrictions will be lifted and the Town will own the property outright," he continued.
According to Armstrong, the bill will also allow Olathe to develop the reservoirs for recreational use. The Town expects to receive up to $10,000
annually for this purpose from Colorado's new lottery for recreational development. Armstrong noted that the Town needs to keep the water system operating
or risk losing its water rights to store spring runoff. "Also, if Olathe's reservoirs are not storing water, then the Town will have to break its 'exchange
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--contract' by which it gets water from the Uncompahgre Valley Water Users
Association. What it boils down to is this: unless the problem is quickly
resolved, the Town of Olathe faces the very serious prospect of losing its municipal water supply altogether," Armstrong said.
"I don't forsee this proposal generating a lot of controversy and I'm
optimistic it will be passed soon. It's a straight-forward approach to
solving an unintendeq problem and letting the Town of Olathe get on with the business of providing water and recreational opportunities for its citizens,"
Armstrong said. U.S. Sen. Gary Hart CD-Colo.) has cosponsored the bill and
U.S. Rep. Ray Kogovsek CD-Colo.) has introduced a similar measure, which has been approved by the House Interior and Insular Affairs Committee.
