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<br /> <br />60 S. Cactus St. . P.O. Box 1150 · Cortez, CO 81321 <br />Phone: 970-565-7562 · Fax: 970-565-0870 · Email: arveschoug@frontier.net <br /> <br />March 21, 2003 <br /> <br />The Colorado Water Conservation Board <br />Attention: John W. Van Sciver <br />1580 Logan Street, Suite 750 <br />Denver, CO 80203 <br /> <br />Dear CWCB Board Members: <br /> <br />RE: Loan Request for Dove Creek Secondary Watlef Supply System <br /> <br />Attached for your consideration is an application fi~om the Dolores Water Conservancy <br />District (DWCD) to secure a loan to help finance a. project for the residents of Dove <br />Creek, Colorado. The project is the Dove Creek Secondary Water Supply System and it <br />will provide Dove Creek with an alternative supply and delivery system for outside <br />irrigation needs. <br /> <br />The DWCD has worked with residents of the Town of Dove Creek over the last 3 years <br />investigating options to provide a more cost effective raw water supply to meet their <br />outside irrigation needs. At the present time, like most Colorado communities, Dove <br />Creek residents use existing treated water supply fc)r outside irrigation. That has been <br />challenging in the face of water restrictions (voluntary) and the high cost of that water <br />supply. <br /> <br />The DWCD has offered to make available 200 to 300 acre-feet of its municipal and <br />industrial (M&n water supply to meet the needs of Dove Creek. And, under a franchise <br />agreement with the Town of Dove Creek, we have agreed to construct the delivery <br />system and offer residential taps to property owners within the Dove Creek service area. <br />The system will include pumping plants, a terminal storage facility, and up to 307 <br />residential taps with flow meters. Our preliminary cost estimates and project budget show <br />that we can cash flow the project through tap fees over the next ten years. <br /> <br />Our plan is to secure a minimum of200 tap agreements before the project begins. That <br />way we're assured ofhavillg at least 65% of the project costs covered by tap fees before <br />the project begins. These tap fees will be payable over 5 years. So, we need up-front <br />financing to begin the project. That's why we need. a loan from the CWCB. <br /> <br />This is a very important project for the community of Dove Creek; it provides a much- <br />needed alternative water supply. The project also helps the Dolores Water Conservancy <br />District make use of its M&I water supply for the benefit of the taxpayers that support the <br />Dolores Project. . <br />