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Hope Ditch Company January 24-25, 2005 Agenda Item 18a Department of Public Health and Environment (CDPHE) drinking water requirements. Before the new well is placed in service, HDC will be required to provide information to the CDPHE Water Quality Control Division, verifying that the replacement well is drawing water from the same source as before, and providing water quality tests for nitrates and bacteria. Because of the water shortage, residents have been using an average of 5000 gallons per month (0.18 AF per yr.) or a total of about 4 AF annually. For budget purposes, HDC is projecting average use with the new well of 7500 gallons per month (0.28 AF per yr.) or a total of about 6.5 AF annually. This is less than a typical single-family home usage of about 0.5 AF per year (0.3 AF inside use plus outside irrigation.) At this typical rate, total annual usage for 23 users could be expected to be 11.5 AF per year. Future water demand from additional lots is uncertain, and will depend on the actual well yield. In the past, HDC has had to decline new tap requests due to lack of water availability. According to the Adams County parcel map there are an additional 27 vacant lots in Wiesner Subdivision. Feasibility Studies HDC, has completed the feasibility study in accordance with CWCB guidelines. The study includes an assessment of alternatives to address rehabilitation or replacement of the well. Hope Ditch Company The HDC is a Colorado Non-Profit Corporation in good standing, formed in 1993. HDC was organized as a mutual ditch company, with water to be taken from groundwater Well No. 1-13593-F and delivered to the residents of Wiesner Subdivision for domestic and irrigation purposes. The purpose of the corporation is the maintenance of the existing well and pipeline system in the subdivision. HDC has two classes of members: shareholder members who own water-tap lots and have bought into the system, and non-shareholder members who own water-tap lots, have not bought into the system, and consequently pay higher water rates. There are currently 21 shareholders and 2 non-shareholder members. The affairs of HDC are managed bya"7-member Board of Directors. Current officers are: Kimberly Duran, President; Anne McCann, Secretary; and David Force, Treasurer. HDC can incur debt provided it is authorized by resolution of the Board of Directors, which has been ratified by a two-thirds majority vote. Membership fees are $3500 to join and tap fees are an additional $5000. Sources of income for HDC (both shareholder and non-shareholder members) consist of monthly assessments (water rates), and a special assessment (capital assessment for the well fund.) Beginning in December 2005, residents are now assessed $40 per month per share for capital improvements and loan repayment, in addition to the monthly water use charge. HDC By-Laws have a number of remedies for non-payment of assessments, including payment of late/interest charges, suspension of voting rights, suspension of water delivery, and other actions available by law. In addition, no member is allowed to waive or escape assessment liability as HDC may file a lien with Adams County and foreclose on a lot for delinquent assessments. Water Riahts The source of water for HDC is a well in the Laramie & Fox Hills aquifer of the Denver Basin. The SEO issued a replacement well permit No. 13593-F-R, on November 18, 2005, that will allow a withdrawal of up to 48 acre-feet per year, at a rate not to exceed 30 GPM. Page 2 of 5