Southwest - La Plata West Rural Domestic Water Supply_Statewide Application

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