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• Board Meeting Date: 7/10/2009
• Description: IWMD Section - Water Supply Reserve Account Project Change - Goodman Point Phase 2 Project
• Board Meetings - Doc Type: Memo

STATE OF COLORADO

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1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: (303) 866 - 3441
Fax: (303) 866 - 4474
www.cwcb.state.co.us

TO: Colorado Water Conservation Board Members
Bill Ritter, Jr.

Governor

FROM: Greg Johnson
Harris D. Sherman
Intrastate Water Management & Development
DNR Executive Director

Jennifer L. Gimbel
DATE: July 10 , 2009
CWCB Director

Dan McAuliffe
Agenda Item 7 , July 21 - 22 , 2009 Board Meeting
SUBJECT :
CWCB Deputy Director
Water Supply Reserve Account Project Change
Goodman Point Water Project, Phase II

Staff Recommendation
Staff r ecommends granting the requested change of Water Supply Reserve Account project
applicant for the Goodman Point Water Project , Phase II .

Background
The Good man Point Water Association (GPWA) received approval for a WSRA grant of $7,700
from the Southwest Basin Account at the March 2007 CWCB Board Meeting . This initial
WSRA grant funded an environmental report and preliminary engineering report on the
extension of domestic water lines from the Montezuma Water Company into the Goodman Po int
area where residents currently haul water . The reports were necessary to negate damage to
environmental and cultural resources, develop preliminary engineering plans , and fulfill USDA
Rural Development requirements for grant/loan funding.

At the Se ptember 2007 CWCB Board Meeting the GPWA was approved for an additional
$260,000 of WSRA funds for project construction ($20,000 from the Southwest Basin Account
and $240,000 from the Statewide Account). This application estimated total project costs of
r oughly $2M and anticipated that almost 75% of the funding would come from a USDA Rural
Development Grant. Though USDA funding estimates were based on review and discussion
with local USDA staff, the national USDA office subsequently limited available gran t funding to
about 45% of project costs. Since the GPWA could not afford alternative financing they pursued
the formation of a water district to execute a mill levy and bond issue. On June 23, 2009, the
Goodman Point Water District (GPWD) was formed by t he attached Order and Decree of the
Montezuma County District Court. Though both entities represent the same people and purpose,
the GPWD will effectively replace the GPWA to execute the Goodman Point Water Project. As
such, the GPWA will ultimately be d issolved. In order to simplify the completion of the WSRA
grant, the applicant has requested CWCB approval of changing the project applicant from the
GPWA to the GPWD.
er Supply Planning & Finance
Water Conservati