By Mary Alice Murphy

The purpose of the Jan. 7 Grant County Water Commission meeting was to update the members on the regional water plan and to talk about additional funding sources.

Gary Berg of Engineers Inc. reported when the quotes came in for the west test well, "they were significantly higher than the estimate. We asked more drillers to put in bids, but then fell back to our original bidders, and went ahead with Kuester Drilling. He brought in a supplies list and it's $100,000. He is in process with a well to drill in Tyrone. By the third week of the month, he should be able to do this test well, when it dries up. It will take a little over a month to drill the well."

"When we get the report from the hydrologist, we will go into preliminary design of the well to see what we can get done with the money left," Berg said.

Alex Brown, Silver City manager and chairman of the water commission, asked Priscilla Lucero, Southwest Council of Governments executive director, if she had any other ideas for funding for design.

"We will be talking about Colonias funding," Lucero said. "Because a lot of the fundings expired, there may be reversion of funds. The next meeting of the Colonias Infrastructure Fund board is in mid-February."

Berg noted that in the Colonias request, "we did roll some of this into it. We could roll in the formal right-of-way acquisition, too. As part of the request, I turned in a scope of work that we could construct with Colonias funding and the AWSA (Arizona Water Settlements Act) funds, everything except the hose (the pipeline)."

Lucero said she had a follow-up conversation with Michaelene Kyrala of the New Mexico Environment Department, who was on her way to the meeting. "She is very supportive and positive about this project."

"One of the contingencies of the Interstate Stream Commission AWSA funding is that we have other funding sources," Lucero said. "We may be able to look at the Drinking Water Revolving Loan Fund. Under rural infrastructure, we can get grant or loan funds. I will advocate for getting some of the reversion of Colonias funding."

Brown said, for expediency, the town of Silver City would do a direct lease with Hurley for 270 acre-feet of water from the town's well field water rights near the airport. "Hurley's 40-year water plan shows a need for 270 acre-feet of water rights. It will be in the contract that we can only lease for 40 years at a time, but we put in automatic renewals. The use of the 900 acre-feet of water rights will be at no cost to any of the municipalities along the pipeline. We're doing a direct lease, so the municipalities can sell the water to their constituents. The intent is to have the contract in place before you go to Colonias, so you can say Hurley has the water rights secure."

Lucero said presentations to Colonias would be March 7, 8 and 9. "Feb. 16 is Colonias Day at the Legislature. We will make this the priority project for this region if we have a chance to present to the governor, who has been supportive of the project."

"It would be nice to show our progress since the last time we presented to her three years ago," Brown said.

"It's not only important for Colonias Day, but also for Grant County Day (on Feb. 3)," Lucero said. "It is important that Hurley be represented both times to continue the momentum."

Esther Gil, Hurley councilwoman, said the council has new members, who have lots of questions. "They need to catch up with the project and understand where we are."

Brown said he would be happy to go with Berg to present on the project to the council.

Gil said the council would meet Monday. "Some of the questions are whether Freeport can be involved and whether we can connect to the existing pipeline."

"I'm planning to start with a production well," Berg said. "We should be able to supply enough to fill Hurley's needs with the one well. It will cost $2 million plus for a 12-inch pipe, which we scaled back from a 16-inch pipe. It's cheaper to use a 12-inch pipe and spend more on power over the years."

Kyrala arrived and introduced herself as NMED strategic initiatives director.

Lucero gave her a quick overview of what had already been discussed. Kyrala had handouts on funding sources the group could look at.

"The first phase of $8 million will be difficult to come up with in one funding source," Kyrala said.

Lucero said the $2.1 million from the ISC could be the match for $2 million from Colonias.

Kyrala mentioned the possibility of funding in loan and grants from the North American Development Bank or the Border Initiative. Lucero noted that the farthest north border to be eligible for the Border Initiative is just south of Hurley.

The Clean Water State Revolving Loan Fund might be another option. "It has new critieria, but it might be possible if you can take on a little bit more debt."

Lucero said Hurley was close to its debt capacity, because it already has two loans it's paying off.

Kyrala said another possibility is the Rural Infrastructure Program. "I hope there will be changes, but there will be a small loan component. There are a lot of options. It's important to reconnect after the session on what capital outlay you get."

She said her department has a community outreach group, which can help with outreach and funding sources.

Brown said the commission realizes the Regional Water Project will have to be phased. "It will be complicated to manage the funding sources. I know because we did a street project with six different funding sources, with each having its own rules."

Lucero said the each of the municipalitiesG