BOARD00063 ‎(2)‎

• Board Meeting Date: 11/13/2006
• Description: CF Section - Construction Fund and Severance Tax Trust Fund Perpetual Base Account New Loans - Penrose Water District - Water Rights Purchase and Raw Water Pipeline Project
• Board Meetings - Doc Type: Memo

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ST ATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

TO:

Colorado Water Conservation Board Members

Bruce Johnson, P.E. }O~!/ ~
Mike Serlet, P.E., Chief..... . J
Water Supply Planning and inance Section

Dan McAuliffe
Deputy Director

Russell George
Executive Director

FROM:

Rod Kuharich
CWCB Director

DATE: November 6,2006

SUBJECT: Agenda Item 10c, November 13-15, 2006 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Penrose Water District - Water Rights Purchase & Raw Water Pipeline

Introduction

The Penrose Water District ("District"), acting by and through the Penrose Water District Water Activity
Enterprise ("Enterprise"), is applying for a $8,757,000 loan from the Severance Tax Trust Fund
Perpetual Base Account to purchase water rights and construct a raw water pipeline from the Arkansas
River to the District's service area, located in and around the Town of Penrose (unincorporated), and to
enlarge Brush Hollow Reservoir. The estimated total cost of the project is $9,730,000. Please see the
attached Project Data Sheet.

Backaround

The District is located in Fremont County about 35 miles southwest of Colorado Springs and 20
miles west of Pueblo, and currently provides domestic water to approximately 4,000 people with
1,700 taps in and around the Town of Penrose. The existing demand is 489 acre-feet per year, and
future build-out demand (about 2040) is projected to be 1,200 acre-feet for about 8,000 residents
and 3,240 taps. The District's water supply is obtained by a lease with the Beaver Park Water, Inc.
(BPW), a Colorado non-profit mutual ditch and reservoir company, who owns and operates Brush
Hollow Reservoir. The 1990 lease has a 30-year term, and provides an increasing amount of water
each year, 751 AF in 2006, leveling out at 1,000 AF in 2020. The District does have the option to
renew the lease. Delivery to the District is by the Brush Hollow Reservoir Supply Canal owned by
BPW. The reservoir has a dual purpose: primarily to provide irrigation water to local agriculture,
and secondarily to serve as an alternate raw water supply for the District. The District gets most of
its raw water by direct diversion from the canal, with a limited amount taken from Brush Hollow
Reservoir. Raw water is passed through settling ponds and it is treated at the District's 2 MGD
water treatment plant.

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning