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<br />-!" , <br />, ~. <br /> <br />.:", <br /> <br />STArrE OF COLORADO <br /> <br />...:. ~':.~;: <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman S~t, Room 721 <br />Deriver, Colorado 80203 <br />F11one:(303)866~1 <br />FAX: (303) 866-4474 <br />www.cwcb.state.co.us <br /> <br /> <br />MEMORANDUM <br /> <br />Bill Owens <br />Governor <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />Bruce Johnson, P.E. ~..., . <br />Mike Seriet, P.E., Chie <br />Water Supply Planning nd Finance Section <br /> <br />Greg E. Walcher <br />Executive Director <br /> <br />FROM: <br /> <br />Rod Kuharich <br />CWCB Director <br /> <br />DanMcAuIiffe <br />Deputy Director <br /> <br />DATE: <br /> <br />July 1-6" 2003 <br /> <br />trr:::~ <br /> <br />SUBJECT: Agendu Item 21 i, July 28-29, 2003 Board Meeting <br />. Water Supply Planning and Finance Section - New Loans <br />Dolores Water Conservancy District - Dove Creek Dual Water System <br /> <br />Introduction <br /> <br />The Dolores Water Oonservancy District (DWCD)" acting. by and through the Dolores Water <br />' Conservancy District Watet Activity Enterprise, is applying for a $883,304 Small Project Loan from the <br />Construction Fund to finance construction of a dual (secondary) water supply system for the Town of <br />Dove Creek (Town). The project would provide an alternative to treated w~ter for outside irrigation, <br />and would be constructed; owned and operated by'DWCD through an existing franchise agreement <br />with the town. The estimated total cost of. the project is $981,450; Please see the attached project <br />summary and map. . <br /> <br />;'Backaround <br /> <br />The Town 'of Dove Creek is located 30 miles NW of Cortez and 8 miles from the Utah state line in <br />. Dolores County in southwest Colorado. The correntpopulation is 698 residents, and the T~wn <br />currently serves about 500 residential and commercial water taps. The DWCD has .been working <br />with the Town, and the Town's Secondary Water Supply Committee, over the last 3 years to <br />investigate options to provide a more cost effective raw water supply to meet outside irrigation <br />needs'. Currently. the Town uses existing treated water supply for outside irrigation. The Town has <br />been challenged with voluntary water restrictions for the past 3 summers, as well as the high cost of <br />water supply. A Franchise Agreement was adopted by the Town on July 11, 2002, granting DWCD <br />.the non-exclusive right to sell and distribute untreated lawn and garden irrigation water through an <br />underground, piped secondary water' system, both within the Town and in future annexation areas. <br />The termofthe'Franchise Agreement is 25 years, with an initial Franchise Fee of 5% of the annual <br />revenue: <br /> <br />Flood Protection · Water Supply Planning and Finance. Stream and Lake Protection <br />Water Supply Protection · Conservation and Drought Planning <br />