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Grand Mesa Water Conservancy District May 17-18, 2017 Board Meeting {Updated May 19, 2017) Page 2 of A Agenda Item 28b Background The District is located on the Grand Mesa in western Colorado. The District's boundary is approximately 5Q0 square miies upon which there are roughly 100 reservoirs. The District owns several of these reservoirs including Skinned Horse Reservoir, Arch Slough Reservoir, and Upper Eggleston Reservoir totaling 562 acre-feet (AF) of 5torage. These reservoirs are operated by a network of ditches that deliver water to District users, including agricultural users as well as approximately 6,400 municipal taps. The District funded severat studies over the past decade evaluating a targe storage project known as the Grand Mesa Project, only to conctude that a large storage project was economically unfeasibte. As a result, the District opted to rehabititate smaller, existing reservoirs. Inctuded in that effart are two breached reservoir5, Peak and Btanche Park. These reservoirs witl add 1S5 AF of storage ta the District'S water rights portfolio. These reservoirs are tocated in Delta County about 25 miles north of the Town of Cedaredge. Peak Reservoir is a 30 AF reservoir that was built between 1903 and 1905. The dam was 12 feet tall and 20Q feet long and was never permitted with the State. By 1950 the dam fell into disrepair and was abandoned. The District acquired the reservair in 2001. Blanche Park Reservoir is a 125 AF reservoir that wa5 construcced in 1845 by a group of total farmers. it also was not permitted and was breached in 1946. The District acquired this reservoir site in 2010. In 2009 when the District began work on the Project, it believed it could tash fund the construction on both dams based on its engineers opinion of p�obabte cost. However, as the Praject progressed the estimates were revised and the District applied for a WSRF Grant in z011 and a CWCB Loan in 2013 to fund the balance. P�oject Update The District was able ta comptete the work at Peak reservoir in 20i 5. Approximately 5124,000 in toan funds were used for the final permitting and construction. Blanche Park Reservoir constructian was delayed due to engineering and permitting issues. In December of 201b, the Office of the State Engineer (SEO) approved the construetion drawings for Blanche Park Reservoir. In Apnl 2Q17, the District received notice that the United States Fish and Wildlife Service approved the Environmental Assessment. The District anticipates having al( permits in place for construction in the summer of 2017.