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STATE OF COLORADO <br />� <br />• <br />� <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (3(13) 866-4474 <br />www.cwcb.state.co.us <br />MEMORANDUM <br />(Updated November 28, 2006) <br />TO: Colorado Water Conservation Board Members <br />FROM: Bruce Johnson, P.E. <br />Mike Serlet, P.E., Chief <br />Water Supply Planning and Finance Section <br />DATE: November 6, 2006 <br />s�u oW� <br />Governor <br />Russell George <br />Executive Director <br />Rod Kuharich <br />cwcs ��tor <br />Dan McAuliffe <br />Deputy Director <br />SUBJECT: Agenda Item 10c, November 13-15, 2006 Board Meeting <br />Water Supply Planning and Finance Section — New Project Loans <br />Penrose Water District — Water Rights Purchase & Raw Water Pipeline <br />Introduction <br />The Penrose Water District ("DistricY'), acting by and through the Penrose Water District Water Activity <br />Enterprise (°Enterprise"), is applying for a$8,757,000 loan from the Severance Tax Trust Fund <br />Perpetual Base Account to purchase water rights and construct a raw water pipeline from the Arkansas <br />River to the DistricYs service area, located in and around the Town of Penrose (unincorporated), and to <br />enlarge Brush Hollow Reservoir. The estimated total cost of the project is $9,730,000. Please see the <br />attached Project Data Sheet. <br />Backaround <br />The District is located in Fremont County about 35 miles southwest of Colorado Springs and 20 <br />miles west of Pueblo, and currently provides domestic water to approximately 4,000 people with <br />1,700 taps in and around the Town of Penrose. The existing demand is 489 acre-feet per year, and <br />future build-out demand (about 2040) is projected to be 1,200 acre-feet for about 8,000 residents <br />and 3,240 taps. The District's water supply is obtained by a lease with the Beaver Park Water, Inc. <br />(BPW), a Colorado non-profit mutual ditch and reservoir company, who owns and operates Brush <br />Hollow Reservoir. The 1990 lease has a 30-year term, and provides an increasing amount of water <br />each year, 751 AF in 2006, leveling out at 1,000 AF in 2020. The District does have the option to <br />renew the lease. Delivery to the District is by the Brush Hollow Reservoir Supply Canal owned by <br />BPW. The reservoir has a dual purpose: primarily to provide irrigation water to local agriculture, <br />and secondarily to serve as an alternate raw water supply for the District. The District gets most of <br />its raw water by direct diversion from the canal, with a limited amount taken from Brush Hollow <br />Reservoir. Raw water is passed through settling ponds and it is treated at the District's 2 MGD <br />water treatment plant. <br />Flc�d Protection . Water Supply Planning and Finance • Stream and C,ake Protection <br />Water Supply ProtecHon • Conservation and Drought Planning <br />