BOARD00062 ‎(2)‎

• Board Meeting Date: 11/13/2006
• Description: CF Section - Construction Fund and Severance Tax Trust Fund Perpetual Base Account New Loans - Lazy O Ranch Homeowners Assoc - Secondary Water System
• Board Meetings - Doc Type: Memo

pumped and distributed to the 21 home sites, separate from the existing potable water system.
The 500 acres of agricultural land on the ranch will continue to utilize a separate irrigation
system.

Feasibility Studies
Yancy Nichol. P.E., with Sopris Engineering, Carbondale, CO, has completed the feasibility
study for the project. The report includes an evaluation of alternatives to construct the secondary
water system.

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The LORHOA
The LORHOA is a non-profit homeowners association registered in the State of Colorado.
There are 22 shareholders, consisting 21 homeowners and the Lazy 0 Cattle Company. The
LORHOA Board of Directors has the power to set annual assessments and to suspend voting
rights and to curtail water services for members that are in default of any assessment levied by
the association.

Water Rh!hts
The LORHOA has a 1902 absolute water right decree for 15 cfs from Capitol Creek, with an
appropriation date of 1881. The LORHOA also has an alternate point of diversion for the
Williams No.2 Ditch, to divert up to 5 cfs to fill the Lazy 0 Reservoir No.2, which was decreed
in 1991.

In 2004 the LORHOA received approval from District Court, Water Division No.5, for a change
in place of use, to allow the LORHOA to pump water directly out of Lazy 0 Reservoir No.2 for
their secondary non-potable water system. The maximum amount of lawn served by the system
could not exceed 10,000 square foot per lot, or a total of 4.82 acres. The approval was based on .
a maximum rate of delivery into Lazy 0 Reservoir of 0.30 cfs during any call period
downstream, and no expansion of use beyond their decreed amount of 15 cfs.

Proiect Description
Two alternatives were analyzed in the feasibility report:

1. Don't build the project. Continue to use the potable system for landscaping needs.

2. Construct a secondary non-potable water system to eliminate the usage of potable
water for irrigation.

Alternative No.1 - Don 't Build the Proiect. This alternative was deemed unacceptable since it
did not address the prolonged use of potable water for irrigation and the future increase of
irrigation use once the area becomes fully built out. -

Alternative No.2 - Construction of Secondary Water System. This alternative was selected since
it met the long term water needs ofthe HOA cost effectively, while also eliminating the use of
potable water for irrigation purposes.

Selected Alernative No.2, involves the installation of the 7,500- feet of 2-inch to 6-inch Class
200 PVC main line pipe, 21 - 2-inch SDR-9, 200 psi service lines with curb stop valves, 100-
feet of 12-inch SDR-21 PVC pipe to go from the pond to the pump station, 2 -10 horsepower
variable speed pumps, and a 6- foot by 6- foot covered pump station..

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