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Frequently Asked Questions

Frequently Asked Questions

General

Water Usage

Distribution System Specific

Cost Related

Frequently Asked Questions Answers

General Answers

1. What is the historical growth rate in southeast La Plata county?

Before 1977, there were about 10 structures (something with a roof on it) per year built in southeast La Plata County; from 1977 through 2000 the rate was about 90/year; the rate decreased to about 70/year for 2001-2008.

2. Is the water system dependent upon new growth?

No! The water system is needed for existing homes. The water systems is feasible even if no other home is constructed within LAPLAWD.

3. Will farmers benefit from the project? If yes, why?

Farmers will receive drinking water and revenue.

4. If my property is excluded now, can it be included in the future?

Yes, it can be included in the future. There will be a fee to apply for inclusion, possible filing fees and paying back taxes since the inception of LAPLAWD. Please see inclusion policy or exclusion policy for further detail.

5. If I don’t get hooked up for ten years, why should I vote yes?

The benefits of voting yes are ensuring safe, quality water for yourself and neighbors in the future. The Board has created a policy addressing the benefit of paying taxes for some many years and how these taxes will be credited towards your Capital Investment Fee. When you vote yes, you increase your property value that could benefit you in the event of selling your property.

6. How quickly will the first homes be brought online?

The period needed to acquire all necessary permits for development and construction is about two years, regardless of the water source. If a mill levy is passed in the near future, construction could commence as early as 2012. LAPLAWD is pursuing a joint treatment plant with the Town of Bayfield. Ideally, LAPLAWD would purchase any available capacity in the existing treatment plant, allowing pipeline construction to begin shortly after. If LAPLAWD cannot purchase the available capacity, then a treatment plant and storage tank need to be constructed before breaking ground for the pipeline.
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Water Usage Answers

7. Are LAPLAWD'S water rights adequate to supply the entire district without other sources?

Yes. The water rights are adequate, but other sources are also being investigated to ensure the most secure source of water for the optimum cost is selected. Please see the Master Plan Section III. Water Supply for further explanation.

8. What are "all" of the water quality problems? What research has been done to identify these problems? Are there simple solutions to the water quality problems (water filters, etc.)?

LAPLAWD has not conducted independent research, however, the United States Geological Survey has conducted studies concerning groundwater quantity and quality.

The USGS paper 1576-J found many groundwater wells that have elevated levels of arsenic, fluoride, selenium, sulfate, dissolved solids, nitrates, iron and manganese, and others. Under sink water filters, reverse osmosis for example, can be used to remove some of the contaminants. However, whole house filters installed on the supply line are recommended, in lieu of the drinking water system, as some of the contaminants can also be absorbed through the skin or inhaled in the shower. Please see the Master Plan III-I. Water Quality Information for further explanation.

9. Is LAPLAWD involved in any water court cases regarding its water supply?

No.

10. Will the water be supplied from a reservoir?

LAPLAWD water rights are direct diversions from the Animas, Pine, and/or Piedra Rivers. Though excellent sources, they do not include water from any reservoir. For this reason, obtaining water from Vallecito Reservoir and Lake Nighthorse (Animas-La Plata Project) is being recommended.

11. How many treatment plants will the system have?

Project planning has indicated that obtaining water from the Animas and Pine River Basins would provide the best long-term secure supply. So the system will eventually utilize two treatment plants. The distribution system will be integrated so that either source can serve the entire system if necessary. Although LAPLAWD holds water rights on both the Animas and the Pine, the best sources of water are Lake Nighthorse and Vallecito Reservoir. LAPLAWD would construct and operate a treatment plant at Ridges Basin Dam to treat water released through the dam, and the District would construct and operate a joint treatment plant with Bayfield to treat water released from Vallecito. Approximately half of the water supply for LAPLAWD would be provided from the Animas Basin and half from the Pine River Basin. The Piedra River source will be considered when the water system is extended into Archuleta County. For further explanation please see the Master Plan Section IV-L. Preferred Water Sources.
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12. If LAPLAWD purchases Animas La Plata Project water, how much will it cost?

The exact price of water cannot be known until final cost allocations for the Animas La Plata Project are complete, which is estimated to be in 2012; however, current purchase estimates are approximately $3,000 per acre-foot plus annual operation and maintenance. The board has expressed interest to the Colorado Water Conservation Board (CWCB) and has requested information regarding purchasing ALP water. The CWCB has responded and negotiations will ensue.

13. What impact does accelerated sprinkler installation have on the aquifer in our part of the county and what might this mean for my well long term?

Sprinkler irrigation puts about ¼ the amount of water into the ground as the traditional flood irrigation. For the past 10 years, farmers have converted about 500 acres per year because sprinklers are more efficient for producing crops. This affects the quantity of water returning to the aquifer that in turn supplies domestic water wells. The amount of water not being recharged to the aquifer is about 75% less than what has traditionally returned. Assuming 1 foot of water per 80 irrigated acres, the amount of water that does not return to the aquifer per day per 80 acres is about 691,200 gallons. From the past ten years, the aquifer has been depleted by about 4839 acre feet.

14. What is the cost to drill a residential well?

Drilling a well for an individual home will cost $5,000 to $10,000. Wells for subdivisions costs substantially more due to La Plata County’s water quantity testing requirements.

15. If I recently drilled a well why would I want to vote yes?

To receive a more reliable, higher quality (treated) water supply. If the well permit allows, the well water could still be used for landscaping purposes. You are not required to purchase a tap but can merely pay taxes to have the opportunity to connect to the system if needed in the future. By voting yes, you are supporting your neighbors who need the secure, safe water supply because they have poor water quality and quantity wells.

16. My well is working fine right now. Can I be in the district and not take water when the pipeline is constructed? Will I be able to keep my existing well and use LAPLAWD water in conjunction?

Yes. When the pipeline is available in your neighborhood it is your option whether to receive water or not. The best way to be sure you have the opportunity to receive water from LAPLAWD is to be in the district. Also, depending on your well permit, you may be able to use your well for outside water needs and use the water system for in home usage. Please see Division of Water Resources Well Statement for further clarification.
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17. How much water will I be allowed to use at my home?

There will not be limit on usage but rather a rate structure will be developed to promote water conservation. The purpose of the LAPLAWD water system is to provide an adequate supply of good quality water for your domestic needs. The purpose is not to promote lawns. The rate structure will make in house and a small amount of outside use affordable, large outside use will be expensive.

18. Will water conservation be incorporated?

Water conservation will be a major component in the water system through the water rate structure as described above and a conservation plan. Since most of the homes served are existing homes, the Board will likely develop some type of program to assist customers in replacing old fixtures with newer water efficient fixtures.

19. What will the Capital Investment Fee (CIF) be? How will the CIF be determined?

CIFs will be determined by the Board. Many factors such as water source and treatment plant location will influence this decision. The board passed a resolution crediting the amount paid in taxes to the CIF at the time water is available to your property. The Board has not established a tap fee at this time but amounts in the range of $3,000 to $5,000 have been discussed, based on nearby water systems’ rates.

Distribution System Specific Answers

20. Who will construct the service pipeline from the main pipeline to my house?

The individual property owner will be responsible for construction of the supply pipeline from the main distribution pipeline to the home.

21. Who pays to operate and maintain the project once constructed?

The operation and maintenance costs will primarily be paid through water sales.

22. Will LAPLAWD provide fire protection?

The pipelines will be sized to provide approximately 1,000 gallons per minute for fire flow at most locations. Depending upon the location of your home within the system the flow could be significantly greater. The cost estimate for the system includes an average of one fire hydrant every mile with the locations determined in consultation with the Fire Districts. Homeowners are encouraged to consult with their home insurance agent to determine potential savings by having a fire hydrant within a certain distance from their home.
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23. Has the Master Plan been prepared?

Yes. Please click here to be directed to the Master Plan and attachments.

Cost Related Answers


24. What would the average homeowner pay in taxes if the proposal mill levy passes at 5 mills?

A residential property appraised at a “market value” of $250,000 by La Plata County Assessor’s office would pay about $100 per year. Easiest way to find what you would be paying annually in taxes begin by determining your total assessed value which is the sum of land assessed value plus improvement assessed value. These values are located on your real estate property tax notice from the assessor or by visiting La Plata County’s Assessor Property Database.The assessed valuation, $19,900 in this example, is then multiplied by 0.005 to determine amount paid, $99.50 per year in this example. The formula is summarized as: (Land assessed value + Improvement assessed value) x 0.005

25. Who pays for construction of the Project?

Construction of the project will primary be funded by property taxes with a small amount from capital investment fees (CIF or tap fee).
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26. Is this a new tax to the oil and gas producers?

Only a small portion, 12.5%, of the tax on oil and gas producers is new. It is primarily a change in where the tax is spent. Oil and gas production pays a severance tax to the State of Colorado. For every dollar of property tax paid locally for schools, fire districts, water systems, etc., oil and gas is allowed to deduct 87.5 cents from their severance tax.

27. How does private property value compare with gas market value, and how does this affect me?

Of the 2009 assessed value of $1,026,364,010 - 80% is from oil and gas production, 1% is from oil and gas personal property, and 19% is private land and improvements (e.g. your home and land). Of the $5,131,820 raised each year, gas market value would generate $4,105,456 in taxes, or 80% and private property would generate $1,026,364 in taxes or 20%.

28. If oil and gas valuations are significantly reduced, what could happen in terms of the tax impact?

Although natural gas production has historically trended upwards with time, the price at which the natural gas produced is sold can vary significantly from year to year. For this reason, the Board expects that LAPLAWD’s property tax revenue may vary significantly from year to year and that this will require that the construction of new facilities be conservatively financed to anticipate these variables.

29. What is the total valuation of the district and how much would this bring to the district every year?

The total assessed value is $1,026,364,010. The 5 mill levy on property tax would raise $5,131,820 per year. These values are updated annually by the County Assessor’s office.

30. What should a resident be asking about fees or other costs other than taxes?

The CIF is estimated to be close to $4,500 at this time. The meter pit is about $500 to $700 but this estimate does not include installation. The service line from the distribution line to the property line to the home has a cost dependent upon the distance and pipe diameter, to date this would cost about $2 to $3 per foot to install. The monthly water bill is estimated to be $30 to $40 per month for about 6,000 gallons.

31. How can the LAPLAWD reduce concerns regarding over-development within the district?

LAPLAWD has historically tried to ease these concerns by stating that they are not in the planning business and that they are bound by the Service Plan to only sell one tap to each legally formed lot. La Plata County has jurisdiction over land use. This does not always ease the concerns because some residents do not appreciate the way La Plata County has treated land use planning in the past.
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