11a

• Board Meeting Date: 1/22/2008
• Description: CF Section – Construction Fund and Severance Tax Trust Fund Perpetual Base Account – New Loans - Pagosa Area Water & Sanitation District - Dry Gulch Reservoir Project Land Purchase
• Board Meetings - Doc Type: Memo

STATE OF COLORADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax: [phone]
wuu-. c~vcb. state. co. us
TO: Colorado Water Conservation Board Members
FROM: Kirk Russell, PE
Mike Serlet, PE, Chief
Water Supply Planning & Finance Section
DATE: January 14, 2008
Bill Ritter, Jr
Governor
Harris D. Sherman
DNR Executive Director
Jennifer L. Gimbel
cwcB Direct°r
Dan McAuliffe
CWCB Deputy Director
SUBJECT: Agenda Item lla, January 22-23, 2008 Board Aleeting
Water Supply Planning and Finance Section - Ne~v Project Loans
Pagosa Area Water & Sanitation District -Dry Gulch Land Acquisition
Introduction
The Pagosa Area Water & Sanitation District (District), acting by and through its Water Activity Enterprise,
is requesting a loan from the CWCB in the amount of $11,106,000 to finance the purchase of land for the
future construction of the Dry Gulch Reservoir (Reservoir). The loan represents 90% of the estimated cost for
the acquisition of two parcels of land (Project) for the Reser~~oir-. The Pagosa Springs area has experienced
significant growth in recent years and the purchase of land is the first step in developing a water supply
storage facility. The Reservoir is projected to cost $80 million. Preliminary engineering is expected to start in
the next couple years with construction to start around 2020. See attached Project Data Sheet for a location
map and a project summary.
Background
An extensive inventory and review of more than 13 potential reservoir sites within the County revealed two
cost effective sites with the fewest environmental concerns. The Hidden Valley Reservoir site was purchased
for residential home development; therefore, action is necessary to secure the land at the Dty Gulch site. The
proposed Reservoir is approximately one mile north of Pagosa Springs along US 160. It will be an off=
channel facility within one half mile of the San Juan River.
The Reservoir will provide water needed for the District's future which includes Archuleta County -the third
fastest growing county in Colorado. The 2005 population of the service area was approximately 9,500 full-
time residents, which is up from about 7,500 in 2000. The annual growth rate was over 7% prior to 2002 and
approximately 5% after 2002. Since the lead-time to construct a new reservoir is typically 20 years or more,
securing the land and starting design/permitting soon to meet the District's projected demands is necessary.
This loan will be used for the purchase of private land necessary to construct the reservoir and San Juan River
diversion facilities. Additional funds may be necessary in the future to acquire the use of land currently
owned by the U. S. Forest Service by fee acquisition or permit.
Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance
Water Conservation & Drought Planning • Intrastate Water Dlanagement & Development