By Mary Alice Murphy

Grant County Water Commission Chairman Alex Brown, who is also the town of Silver City's manager, led off the meeting and said: "The Interstate Stream Commission staff recommended that the Regional Water Project be tabled as part of the Arizona Water Settlements Act process. The staff also recommended putting stipulations on some funding."

He said staff made the recommendation for Silver City to give its water rights from near the airport to Hurley.

"It doesn't seem like the staff understood what the project was about," Brown said. "We were told someone would notify us, but no one has. We decided to wait on the minutes."

Peter Russell, Silver City Community Development director, said the minutes of the meetings of Nov. 10 and 14 had been posted, but not the minutes of the Nov. 24 meeting. "I called, but just left a message. It's conceivable the minutes won't be approved until the January meeting."

Gary Berg of Engineers Inc. gave an update on the preliminary engineering report.

"We discussion this commission and local water entities," Berg said. "We went through a number of different alternatives for construction. We have Silver City's water rights at the airport—193.2 acre-feet of water rights."

Brown said the town also submitted an application to receive water recharge credits. "It was approved, and we have an additional 747 acre-feet," Brown said. "So, at those two wells at the airport, we will be able to pump 921 acre-feet of water."

Berg said Engineers Inc. developed a PER for two wells at the airport, a pump booster station to take water to Hurley, another pumping station to Bayard and another at Santa Clara. "We clarified that at first, we would pump 250 gallons a minute to Hurley. In year five, we will go to bigger pumps to produce the full amount allowed by the Office of the State Engineer."

"Since all agencies are supporting renewable energy, we added photo-voltaic solar to send water to Hurley and save energy," Berg said. "We made sure the reflection would not infringe on air traffic."

He said the group discussed the pipeline corridor with Freeport McMoRan Inc. "They have no heartburn with taking the long way to the airport to the railroad track and to E Street in Hurley."

Brown pointed out that Hurley would continue to operate its own water system to its own residents. Bayard will have its own water system to provide water to its residents and to Hanover. Santa Clara would also maintain its own water system, as would Silver City.

Gabriel Ramos, District 1 commissioner representing Grant County, asked if the water would be metered.

Berg confirmed it would be metered at the booster stations and all other connections.

After Hurley, he said the pipeline would travel south of Bayard to the booster station and then west to Santa Clara. "We plan a stub at Santa Clara to take water to Arenas Valley."

Brown said Arenas Valley now gets water from near the highway, but this pipeline would allow the area to get water from the other side of the community, too.

Berg noted that the ISC had hired William J. Miller, an Albuquerque engineer, to do basically the same work as Engineers Inc. "We understood better the property limitations, but we were pleased that his work was quite similar to ours in concept and costs."

"We plan to go after every funding source possible for this project," Brown said. "The Arizona Water Settlements Act funding is only one source. What's important is to go after other sources. We want to use the AWSA funding as a match. Hurley has already received funding of about $519,000 for design of transmission lines."

"Prior to that funding, Hurley has expended since 2006 about a quarter million on developing water for the town," Berg said.

Brown asked what the deadline was for Hurley to stop receiving water from Freeport. Hurley Mayor Edward Encinas replied: "2018."

Santa Clara Mayor Richard Bauch said his village received Colonias Infrastructure Fund money to tie the Arenas Valley system into Santa Clara's.

Priscilla Lucero, Southwest New Mexico Council of Governments executive director, said it was a "huge grant from the Colonias Fund of about $750,000, plus capital outlay funding."

Ramos asked if any other funding were coming in for the regional project.

Lucero said funding received by Arenas Valley, Tyrone, North Hurley and Hanover could all go toward a match.

"The state has a new initiative, called Fund It," Lucero said. "It's like the former USDA REAP (Rural Energy for America Program). Maybe we're ready to bring an application forward."

"I think the next step is to put all the matches together, plus the value of the water rights," Brown said. "We're very much on our way."

Lucero pointed out that due to the decrease in oil and gas revenues funding for the Colonias Infrastructure Fund was likely to decrease in coming years, although the current funding is at $17 million. "If we need to apply for USDA funding, each entity can apply for its own portion." She said the Promise Zone designation is also pending and will likely be announced in the spring. "We came in second last year, and already opportunities are coming as a result. We call them ladders of opportunity, which allows us to tap into other funding."

Brown said the commission had focused on the AWSA funding, because it was imminent. "I recommend we focus on getting the recommended amount, which I think was $2.1 million from AWSA right now. We have to clarify the questions they have. How would we convey water rights to the users? We want to maintain control over the water rights."

He said if an industrial park were to be developed at the airport, "we wouldn't have a problem providing water with the 747 acre-feet of water rights. The obstacle seems to be the 193 acre-feet we own."

Russell noted the place of use of the 193 acre-feet is Silver City. To change that would require a proposal, with public comment, protests and appeals. "The 747 recharge credit water is pre-approved for use throughout the area. If we gave it to this commission, we would all share it."

Ramos said he wanted to make sure water gets to Hurley. "They have needs now, and we must make sure no one in the future can take it away from them. We must set it up, so a future dominant entity can't change it."

Brown said once other funding sources are acquired, such as federal funds, it would not be possible to take the water away, because of secondary requirements and agreements.

Russell said two issues at the ISC meeting were apparently tabled, because legal counsel didn't know whether the ISC could require conditions as part of the AWSA award. Second, the water commission is the owner of the recharge credit water rights. Each entity sits on this commission, which is set up so every entity, as part of the commission, gives strength to water delivery to the entire area.

Brown said the joint powers agreement is set up so it protects everyone.

Encinas said he wanted to make sure that decisions made by the water commission could not be changed by outside interference.

Lucero pointed out that federal requirements might supersede what the commission does. "Sometimes they help."

James Marshall, Silver City assistant town manager, said some legislation that has been pre-filed for the upcoming session would allow development of regional water projects. "Our JPA has strong protections, such as requiring a unanimous vote on any decision. If this commission went away, the rights would revert back to Silver City. We cannot, however, turn off the water. I think we need to explain to the ISC the protections we have in place."

Lucero said the Lower Rio Grant Authority, made up of five colonias, has faced all kinds of obstacles and barriers. "I think the legislation is because of that."

Marshall confirmed that the issue is coming out of Doña Ana County.

"We're all on the same page now," Brown said. "When I retire in 10 years, it will still take a unanimous vote to change the JPA or to dissolve the commission. We meet monthly and have no staff. I hope it's OK that I continue as chair and try to clear up things with the ISC, and then move us forward."

Gerald Schultz, representing New Mexico Resource Conservation and Development districts, said an article in the Albuquerque paper said New Mexico would be getting millions of dollars for water projects. "Remember, money and politics can erode plans, if they are not protected. It's important to keep water rights locked in."

During public input, Berg said he had handed each commissioner two bundles of paper, which laid out other funding sources, from the New Mexico Finance Authority and USDA funds for economic development.

Lucero said the portfolio for economic development funds was low in New Mexico, so the agency is looking at funding for New Mexico in the next federal fiscal year.

Berg said another EPA Colonias funding source is available for entities within 100 kilometers of the border with Mexico. Although Hurley is 101.5 kilometers away from the border, the well field is 95 kilometers from the border.

Lucero said most federal funds would fund up to $500,000. She said they include Water Smart, which will fund water conservation and electronic water meters, among other items.

"We tend to think about the same funding sources," Berg said. "This may help us to diversify. Silver City is thrown out of many because of the more than 10,000 population." Brown said he thought there would be ways to do it.

Lucero suggested putting in a preliminary application for the Fund It program. "We are meeting every quarter."

Encinas asked about the timeline if the group went out for funding and it was awarded.

Brown said until the design is completed, "we identify all funding sources, and once the design is completed, we hit it hard."

Berg said Engineers Inc. planned to have the design complete by the end of 2015.

"We still have things to do," Brown said. After discussion, it was decided by the group to have the next meeting after the legislative session unless something needed to be addressed before then.