Southwest - Dry Gulch Reservoir_BRT Approval Letter

• Basin Roundtable: Southwest
• Applicant: San Juan Water Conservancy District
• Description: Dry Gulch AKA San Juan Reservoir
• Account Source: Statewide
• Board Meeting Date: 3/13/2007
• Contract/PO #: 150408
• WSRA - Doc Type: Roundtable Approval Documents

San Juan Water Conservancy Dlstrlct

PO Drawer 4632
Pagosa Springs, CO 81157
[phone]
[phone] [fax]

December 28, 2006

Colorado Water Conservation Board (CWCB)
Intrastate Water Management and Development
1580 Logan Street, Suite 600
Denver, CO 80203

Dear CWCB Members:

Attached, for your review and consideration, is the San Juan Water Conservancy District
(SJWCD or District) Grant Application for the CWCB 2006-2007 Water Supply Reserve
Account. Specifically, the SJWCD is requesting $1 million of a total $9,1 million (representing
11 percent) to purchase property for development of the critically needed San Juan (aka Dry
Gulch) Reservoir,

Reservoir development is necessary for the health and welfare of the Districts' constituents due
to unprecedented growth (7.1 percent per year based on equivalent unit usage; see attached
Economic Development Region Nine Healthy Communities Survey) within the District
boundaries, These growth figures, which exceed the census growth figures, do not reflect the
large number of seasonal residents in the area, A local study on second homes indicates that 60
percent of properties are owned by people that live outside of the County, As an example of
growth, historic water connections within the District average about 200 per year. There were,
however, 309 connections in 2006 and already a request for 359 connections in 2007. The
current water storage capacity in the District is a mere 2,900 acre-feet (AF), Studies indicate that
an additional 12,000 AF of storage capacity will be necessary by the year 2040 to meet the water
needs of area residents,

The District has been working on this Reservoir storage project since the mid-1980's. Therefore,
all of the necessary studies have already been conducted (see attached), including an extensive
inventory and review of more than 13 potential sites within the SJWCD and county (Archuleta)
boundaries. This analysis revealed that there were only two geotechnical, topographical, and
economically feasible sites to choose from that have the least environmental concerns associated
with them, One site has been purchased by a developer. Thus, time is of the essence to secure the
last remaining potential Reservoir site in the District before it is either lost to development and/or
a financial impossibility due to extreme land escalation costs in the County.

Of positive note related to Phase I of the Reservoir site land acquisition is that it is totally
enclosed on private property, thereby alleviating the necessity to negotiate with multiple parties,
In addition, the land is currently under contract with an anticipated first closing scheduled for
July-August 2007. It should be noted, too, that the vitally important water rights for the
Reservoir have already been secured (see attached Court Orders), In addition, the District