PROJ00540

• Contract/PO #: C153697
• Contractor Name: Norwood, Town of and Norwood Water Commission
• Contract Type: Loan
• Water District: 60
• County: San Miguel
• Bill Number: FSL
• Loan Projects - Doc Type: Feasibility Study

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to include the rural areas, the Town of Norwood and
the San Miguel Water Conservancy District signed an
Agreement to jointly own and administer the newly
expanded water system. According to the agreement,
dated May 20, 1977, the new water system was to be
operated and maintained jointly by the Town and
District through an entity known as the Norwood-San
Miguel Joint Water commission. The Commission was
to consist of three members of the Board of Trustees
of the Town of Norwood and three water users
appointed by the San Miguel Water conservancy
District (the District). The Town and the District
each provided a specified amount of assets for the
combined water system.

The Joint commission was to have no treasury. The
Town was to act as billing agent and was to bill the
District for costs of Joint Venture Facilities.

To handle administration of the rural pipeline, the
District established a committee know as Wrights
Mesa Rural Water System Board. The Board
represented the District on the various water
matters which are its responsibility, but was not a
legal entity. However, the term Wrights Mesa Board
was frequently used in conjunction with activities
that are the legal responsibility of the District.

There were several problems with the Joint Venture
agreement including:

1. Exact ownership of facilities was not well
defined.

2. Official status of the Wrights Mesa Rural
Water System Board (which represents the
District) was uncertain.

3. The Town Board and Wrights Mesa Board
frequently worked separately.

4. Cost share of new facilities was not well
defined.

2. Town of Norwood Water Commission.

To eliminate the administrative problems caused by
the Joint venture, it was decided to have one entity
own and operate the system. On December 23, 1993,
the Town of Norwood Water Commission was created.
The Town absorbed Town ownership (from SMWCD) of all
the water system infrastructure. It is responsible
for all assets, debts, finances, and operations. It

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