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

The draft BBA feasibility study provides an estimate by the District of the value of the
assets-being-acquiIed.- The analysis- was cloneh.y conserva1ively_e;:tlm::ltine.the.::Irnmmtc;; of
water the EDWD would purchase in each year of the next 30 years and the price ofthe
water under the terms of the 1983 MOA between the District and Vidler. The present
value of the total annual payments for 30 years was calculated using a 5.00 percent
discount factor. The resulting present value was $3.40 million. The cost per acre-foot for
94 acre*feet of consumptive use plus the five acre-feet of storage water amounts to about
$34,000.

Using comparable sales information from 1998, BBA estimated the purchase price of
augmentation water in the Dillon area at about $39,000 per acre*foot. Escalated for
inflation at 3.00 percent in the last three years, the year 2001 cost would be about $42,000
per acre-foot. An evaluation by BBA of water available to lease in the Dillon area
indicates a present value of$55,OOO per acre-foot.

QVCB Instream Flows

In an MOA dated October 25, 1988 between Vid1er and the CWCB, Vidler agreed not to
oppose a number of the Board's instream flow filings in the Blue River Basin. In return,
the Board agreed to allow Vidler and its designees to utilize 19 acre-feet of storage in
Dillon Reservoir, directly or by exchange in the Blue, Swan and Snake Rivers. The
Board reserved the right to file a statement of opposition to any application involving the
Dillon water to ensure the terms and conditions of the MOA are met. The ED\VD is
aware of and will comply with the applicable terms of the C\VCB MOA.

Vidler has filed a plan for augmentation in Case No. 97C\V305 involving a portion of the
19 acre-feet mentioned above. This augmentation plan may include the 5 acre feet of
Dillon water conveyed to ED\VD in the December 2000 Purchase Agreement. The
CWCB has filed a statement of opposition to this augmentation plan, pursuant to the
1\.lOA, to ensure instream flow water rights are not injured.

As rrie-nfi6ned above, the December 2000 Purcnase Agreemenf befWeeh-ED\VD and
Vidler includes 5 acre-feet of the Dillon water and an interest in the plan for
augmentation as part of the conveyance to EDWD. The EDWD is not currently a party to
the pending augmentation plan application and does not intend to obtain water under that
augmentation plan. The EDWD understands that CV,lCB loan funds may not be used to
purchase an interest in the plan for augmentation.

I.oan Request

The ED\VD is requesting a 30-year loan for 52.55 million, which represents 75 percent of
the $3.40 million purchase price of the assets to be acquired. Since median household
income (MHI) figures are not available for the District, the unweighted average 1v1HI for
the two nearby communities of Dillon and Frisco \vas used to estimate the ,MIll for the

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