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<br />Water Supply Reserve Account - Grant Application Form <br />Fonn Revised May 2007 <br /> <br />4. Please provide an overview of the water project or activity to be funded including - type of activity, statement of <br />what the activity is intended to accomplish, the need for the activity, the problems and opportunities to be addressed, <br />expectations of the participants, why the activity is important, the service area or geographic location, and any relevant <br />issues etc. Please include any relevant TABOR issues that may affect the Contracting Entity. Please refer to Part 2 of <br />Criteria and Guidance document for additional detail on information to include. <br /> <br />By integrating the interests of several entities in the region, the LPWWA is designing a <br />practical and economically viable rural water supply system that will provide reliable domestic <br />supply utilizing allocated ALP water. Funding from this grant will be used for engineering, <br />permitting and planning fees for the water supply structure for the project. <br /> <br />The La Plata West Rural Domestic Water Supply System will serve southwest La Plata <br />County, Colorado, and potentially northern San Juan County, New Mexico and the Ute Indian <br />Tribes. Residential development in this area is limited by the lack of a reliable water supply, <br />the poor quality of groundwater, and the lack of water delivery systems. Currently, many area <br />residents rely on water hauling from a non-certified source. Some residents use groundwater <br />wells, many of which are unreliable. Currently, there is not an effective system of providing <br />safe reliable drinking water to this portion of La Plata County. The growth and development of <br />the southwestern portion of La Plata County is limited by the lack of water service. As detailed <br />in the La Plata County Comprehensive Plan Land Use section, the project area includes <br />proposed 'growth hubs' that have the potential to serve as centers for residential and <br />commercial development. In order to facilitate this planned growth and accommodate the <br />increasing population, a water supply system must be developed. <br /> <br />The need for a rural domestic water supply system in southwest La Plata County has long <br />been recognized. A task force was formed in 2000 to conduct research on the feasibility of <br />building a water supply system. In 2004, the La Plata West Water Company was formed. <br />Several studies have been commissioned by interested parties, government agencies and the <br />Company. Approximately $50,000 has been spent to date by the Company on preliminary <br />studies, engineering and consultant fees. The research, studies, and collaboration with <br />several government and non-government parties in the area has been a significant <br />contribution to the project. <br /> <br />In November 2007, the LPWWA was formed in order to oversee the management of the water <br />supply system. The LPWWA is not considered a "district" as that term is used in TABOR. In a <br />relevant Colorado Court of Appeals case, Olson v. City of Golden, the court of ruled that an <br />entity that lacked the capacity to levy taxes or hold elections could not be considered a local <br />government within the TABOR definition of "district" and was not subject to the provisions of <br />TABOR. Since the LPWWA lacks these capacities, it is not subject to TABOR regulations and <br />can receive grants directly from the state of Colorado and other local governments. The <br />LPWWA, with assistance from hired professionals, will be responsible for technical, financial <br />and operational issues. Ultimately, the water supply system will be financially self-sustaining, <br />using monthly user charges to cover operational and maintenance costs. <br /> <br />For a more detailed description and maps of the project, please see the attached Project <br />Overview. <br /> <br />6 <br />