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San Luis Valley Water Conservancy District Agenda Item 16c <br />July 15, 2008 <br />Page 2 of 6 <br />Background <br />The District operates a Water Augmentation Program within a portion of the San Luis <br />Valley and the upper Rio Grande River Basin in Colorado. The Program has provided augmentation <br />water primarily to resi dential and commercial water users si nce 1984. Since its first Water Court <br />Decree’s approval, augmentation water has been a dded to the Program through subsequent cases. <br />The District’s service area incl udes portions of Rio Grande, Al amosa, Saguache, Mineral and <br />Hinsdale Counties. The actual augmentation service area is lim ited to the geographic area where <br />depletions from augmented wells and ponds can be replaced by the District augmentation plans, <br />either directly or by exchange. <br />The District’s Augmentation Program was devel oped to replace stream and river depletions <br />resulting from withdrawal of groundwater through out-of-prio rity wells serving primarily <br />residential and commercial uses. Rio Grande an d transmountain surface water rights have been <br />acquired by the District to replace these depletions. To replace deple tions at the time and place that <br />they occur, upstream water storage rights have been obtained through agreements with Rio Grande, <br />Santa Maria and Continental Reservoirs. Through the use of reservoir releases and surface <br />diversions, the District replace s depletions resulting from we lls included in its Augmentation <br />Program. <br />Loan Feasibility Study <br />The Loan Feasibility Study titled “ Feasibility Study – Pine River Weminuche Pass Ditch Water <br />Rights Acquisition, May 2008 ” was prepared for the District by Allen Davey, P.E. with Davis <br />Engineering Service, Inc., Alamosa with assistan ce from Mike Gibson, Manage r of the District. The <br />study was prepared in accordan ce with the CWCB guidelines. <br />San Luis Valley Water Conservancy District <br />In 1949, the District was organize d pursuant to the Water Conser vancy Act by District Court in <br />Alamosa, Colorado. Originally the District included the cities of Alamosa, Monte Vista, Del Norte, <br />Center and Hooper and a patchwork of farm an d ranch land that had petitioned into the new <br />District. In 1984, the District Board of Directors decided to expand the boundaries and focus on <br />establishing a central Augmentation Program. Revenue to the District consists of a current ad <br />valorem tax of 0.483 mils and income from augmentation water sales and maintenance fees. The <br />District facilitates its Au gmentation Program through a Wa ter Activities Enterprise. <br />Water Rights <br />The District intends to acquire additional water rights to add to its Augmentation Program. The new <br />water rights are part of the Pine River Weminuche Pass Ditch (Ditch), which has the following <br />decrees: <br />