Southwest - La Plata West Rural Domestic Water Supply_Statewide Application

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Nighthorse. Engineering, permitting and project development are underway; the design and permits will be finalized as new information is available. No new studies are required. A preliminary design has been completed and will be available in mid-March. The BOR is worl(ing with LPWW A on drafting and Environmental Assessment, and the LPWW A Board is meeting with potentially interested parties to discuss financial commitments. Grant funding would be used for the completion of this worl(. 4. How does the proposal envision and anticipate support from its beneficiaries or from other sources in addition to the funding requested here? Would a loan reasonably address the needs of the applicant or., with a grant., should a recommendation be added to assess the future proiect status for ability to repay a portion of the grant? The entities participating in the project, potentially with federal assistance, will share the responsibility for the costs of the bacl(bone infrastructure, and system operation and maintenance. Tap fees will be used for the cover capital costs for the distribution system in La Plata County and monthly user charges will finance ongoing operational and maintenance costs. The Ute Mountain Ute Tribe and the Southern Ute Indian Tribe have federal funding allocated for use in developing their ALP water resources, which may be used for this project. Further grant funding is being sought to supplement the funds that have currently been awarded to LPWW A. The collaboration of La Plata County, Tribal councils, ALPWCD, LPWCD, the BOR and other entities is a significant in-l(ind contribution to the advancement of the project. The LPWW A is a quasi-governmental agency with no ability to levy taxes, and therefore cannot repay a loan. 5. What is the ability of the sponsor to pay for the proiect? What actions have been tal(en to secure local funding? Are there supporting factors which overcome the sponsor's inability to pay? (These could be related to basin water needs and compact considerations ). The LPWW A (and its predecessor, the nonprofit La Plata West Water Company) has worl(ed to involve several parties in the intal(e structure project. The cost of the project is significant, as are the benefits to the invested entities and to the services in La Plata County. As discussed above, the domestic water supply system, including the intal(e structure, will require several sources of funding in addition to the grants applied for by the LPWW A. Current grant applications from the LPWW A include: $100,000: Water Supply Reserve Account Southwestern Basin Roundtable for intal(e structure design $1 million: Statewide Water Supply Reserve Account for water supply structure development and engineering design $400,000 from the Colorado Department of Local Affairs (DOLA) for the engineering, planning and permitting of the water supply structure. La Plata West Water Authority La Plata West Rural DOlnestic Water Supply Systeln 2/26/2008 Page 3