BOARD00106 ‎(2)‎

• Board Meeting Date: 1/23/2007
• Description: CF Section - New Loans - Wood Lake Mutual Water and Irrigation Co. - Angel Lake Outlet Repair
• Board Meetings - Doc Type: Memo

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City of Aurora
January 23-24, 2007
Page 2 of 7

Agenda Item Sf

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The PWP is a key part of Aurora Water's comprehensive water resource plan. The goal of the PWP .
is to supply 10,000 acre-feet of water per year by 2010 and 15,000 ac-ft/yr by 2017. Aurora Water
will accomplish these goals using reusable effluent from its existing portfolio of decreed reusable
water rights.

Aurora Water has implemented highly productive and comprehensive water conservation programs
that will allow it to meet its customers' demands in the near term. However, a long-term water
supply strategy is needed to ensure reliability. Through a series of water resource planning efforts,
water conservation actions, responsible water right acquisitions, and water leasing agreements, the
City identified a strategy to improve the reliability of its water supply system and continue to provide
high-quality water to its customers. After screening the possible solutions to the water supply
reliability problem. the City chose the Prairie Waters Project. The PWP will allow Aurora Water to
use its full share of existing water rights as well as take advantage of future resources. In 2003,
Aurora Water began preliminary design of the PWP.

Loan Feasibility Study

The Loan Feasibility Study was prepared by several members of the Prairie Waters Project team.
This includes Thomas Sather, Financing Administrator, City of Aurora; Rod Brauer, PWP Program
Manager; Tiffany McEachen, PWP Program Delivery Engineer (CH2M Hill). The study was
prepared in accordance with the CWCB guidelines and includes preliminary engineering design and
cost estimates.

Aurora. Colorado

Aurora falls within three counties, Adams, Arapahoe and Douglas. The Aurora City Council is
composed of a mayor and 10 council members. The City serves a population of 300,000 (68,600
customers) and expects to grow to 600,000 by 2050 (based on a growth rate of 1.7 percent). As
with many communities in the Front Range, the City re-evaluated the community's per capita
demand of water conservation measures put in place due to the 2002 drought. The City is using the
following gallons per capita per day water usage in their water supply planning:

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175 gal/cap/day Average water usage rate during a normal or average year.
(0.2 a-f/cap/yr)
160 gal/cap/day Reduced average water usage rate reflecting a 1 a-percent decrease in water usage
(0.18 a-f/cap/yr) due to conservation measures implemented during dry years.
140 gal/cap/day Further reduction in average water usage rate reflecting reductions in water demand
that may be achieved through mandatory water use restrictions beyond normal dry
(0.16 a-f/cap/yr) year conservation measures, such as significant limitations on outside watering.

The City will use its Water Enterprise Fund to finance and construct the Prairie Waters Project. The
City projects the need for $3.7 billion in Capital Improvements over the next 25 years.

Water RiQhts

The PWP will re-divert legally reusable water from the South Platte near Brighton, Colorado. This
re-usable water is from trans-basin sources: Aurora's Colorado River and Arkansas River water .
rights; deep wells (Aurora's Denver Basin wells); or previously court-changed water rights (Aurora's
South Park water rights). To maximize the natural purification processes that occur in the river's
alluvium, Aurora Water plans to divert its legally reusable water through tributary wells constructed
close to the South Platte River. The tributary wells in the over-appropriated South Platte River basin