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Pagosa Area Water & Sanitation Dishict Agenda Item l la 7anuaiy 14, 2007 Page 2 of 6 The District's water storage capacity will be 4,000 AF when the Stevens dam enlargement is complete. To meet the District's water needs, studies indicate that about 12,000 AF of storage will be necessary by 2040. The Reservoir site has a potential storage capacity of 35,000 AF; therefore, the Reservoir could be constructed in two phases, depending on the economic conditions and water demands. This loan request is for the purchase of the Weber parcel and the Laverty parcel, which are needed for the constfuction of any size resefvoir at the Dry Gulch site. The Dry Gulch Reservoir project was identified in the Statewide Water Supply Initiative as a ``Major Identified Project" to meet the future municipal demands in Archuleta County within the Dolores/San Juan/San Miguel Basin. In addition, the CWCB approved a $1 million Water Supply Reserve fund grant to the San Juan Water Conservancy District (SJWCD) in March of 2007. The grant will be used as the 10% local contribution as required by the CWCB loan for the purchase of the two parcels of land. Loan Feasibility Study The Loan Feasibility Study was prepared by Steve Harris of Harris Water Engineering, Durango, Colorado with several members of District staff including Carrie Weiss, District Manager and Sheltie Tressler, Assistant Financial Manager, and Fred Schmidt, San Juan Water Conservancy District, President. The study was prepared in accordance with the CWCB guidelines and includes preliminary engineering design and cost estimates. Additional studies referenced in the Loan Feasibility Study include: • Alternative Reservoir Site Evaluation Appraisal Level Study. Harris Water Engineering, Inc. 1989. • Appraisal Report to Evaluate Future Raw Water Demands and Water Supply Alternative Plans. Harris Water Engineering, Inc. 2003. • Expert Opinion in Support of Water Court Case No. 04CW85, Water Division 7. Steven C. Harris. 2005. Pagosa Area Water & Sanitation District (District) The Pagosa Water and Sanitation District was originally formed in 1971 and reorganized as the Pagosa Area Water and Sanitation District in 1977. The District is aquasi-municipal corporation and a political subdivision of the State. Its mission is to provide safe drinking water and wastewater services in an economical and environmentally responsible manner and to educate the community with regard to water conservation. The District serves about 75 percent of the population of Archuleta County with M&I water. In addition, it provides water-based recreational benefits, as well as irrigation water for parks, athletic fields and golf courses. The current annual treated water demand is about 2,000 AF, plus about 900 AF of raw water irrigation and related demand. Nearly all the District is located within the SJWCD boundary. The SJWCD was formed in 1987 as a political subdivision of the State with all the powers of a public or municipal corporation as authorized by statutes. The SJWCD encompasses approximately 100 square-miles of the 1,365 square- miles of Archuleta County. SJWCD service area includes approximately 95% of the current municipal and industrial water demand within the County. The purpose of the SJWCD is to conserve, maximize and utilize the water resources of the San Juan Rivet- and its tributaries. In addition, a primary function of the SJWCD is to address future water supply needs.