PROJ00043 ‎(2)‎

• Contract/PO #: C150100
• Contractor Name: East Dillon Water District
• Contract Type: Loan
• Water District: 5
• County: Summit
• Bill Number: Bill 02-1152
• Loan Projects - Doc Type: Approval Letter

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Water is physically obtained from ten shallow wells in the Soda Creek alluvium located
within the boundaries of the EDWD. The Soda Creek wells are oVv'Iled by Vidler but are
a part afthe pending water rights acquisition by the EDWD. The District owns and
operates the water treatment, distribution and treated water storage components of the
system,

The current annual water demand of the District is about 300 acre-feet \vith consumptive
use estimated at 30 acre-feet. Build-out water demand is estimated at 600 acre-feet per
year with about 56 acre-feet of consumptive use. BBA has evaluated the yield of the
water rights to be purchased as well as the expected yield of the Soda Creek alluvium and
is of the opinion that both are generally adequate for build-out water demands.

Proposed Purchase

Under the 1983 Memorandum of Agreement benveen EDWD and Vidler, Vidler is the
exclusive source of water to the District. In December of2000, the District entered into a
Purchase Agreement with Vidler to acquire the assets that provide water to the District
under the 1983 MOA.

The assets to be acquired in the proposed purchase include:

1. a portfolio of senior water rights with a total decreed consumptive use of 101 acre-
feet, of which seven acre-feet are exchanged for storage in Dillon reservoir,

2. the ten Soda Creek \Vells, and

3. the right to use five acre-feet of storage in Dillon Reservoir subject to conditions set
forth under a 1988 MOA between Vidler and the CWCB (discussed in the following
section of this memo).

The assets-are-sUhirtlanzed in Table 1, attached.

As mentioned above. the EDWD has relied exclusively upon these water rights since the
District was established. The District believes that no additional legal action is required
and no additional permitting actions are necessary to utilize the water rights or the wells.

The assets are being acquired through two agreements. In December of2000, the ED\VD.
Vidler and the City of Golden concluded an Assignment Agreement in v".hich the EDWD
agreed to pay Golden and Vidler a total of5300,000 for 20 acre-feet of consumptive use
of the Rice Ranch water rights listed in Table 1. That transaction has been completed. In a
Purchase Agreement also dated December 2000 betv..reen the ED\VD and VidIer, the
District agreed to pay Vidler S3.1 million for the remainder of the assets listed in Table 1.
The ED\VD is intending to close on this agreement in July of2002.

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