PROJ01945 ‎(3)‎

• Contract/PO #: C150193
• Contractor Name: Dolores Water Conservancy District
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

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CHAPTER II - DESCRIPTION OF SPONSORING ENTITY
(Summary from October 2000 Feasibility Report)

The sponsoring entity for WETPACK is the Dolores Water Conservancy DISTRICT
(DISTRICT) in Cortez, Colorado. The DISTRICT's organization and financial status is
described in this chapter and the 2003 audit is attached as an appendix.

The Dolores Water Conservancy District was formed in 1961 pursuant to C.R.S. Title 37, Article
45. Its purpose is to be the local sponsoring entity for the Dolores River Project, a Federal
Bureau of Reclamation Project. Construction of the Project began on September 20, 1989 and
concluded on October 10, 1999 a span of 20 years. The total cost of the Project totaled $650
million.

There are 446 square miles within the boundary of the DISTRICT, including 10 sq mi of non-
contiguous tracts of land upstream of McPhee Reservoir. The DISTRICT extends from Dove
Creek south to the Ute Indian Reservation a distance of 45 miles and from the Utah/Colorado
stateline on the west to the Town of Dolores on the east, a distance of 28 miles. The purpose for
the 10 sq mi of non-contiguous tracts upstream of McPhee is to protect historic water usage for
42 agricultural water rights that are Junior to Montezuma Valley Irrigation Company.

The population of the DISTRICT is about 22,000 of which approximately 50% live in the three
towns of Cortez, Dove Creek and Dolores.

The majority of the DISTRICT's revenues and expenses are accounted for through the
DISTRICT OM&R (Operation, Maintenance, and Replacement) Water Operation
Enterprise Fund created by DISTRICT Resolution 93-02 included in Appendix C of the
2000 Feasibility Report. The requested loan from the CWCB will be with the OM&R
Fund.

The powers of the DISTRICT are granted by the State of Colorado pursuant to C.R.S. 37-45-118
and 134. The bylaws of the DISTRICT are in Appendix C of the 2000 Feasibility Study.

The DISTRICT provides a variety of water uses including: municipal and industrial water;
Supplemental water to Montezuma Valley Irrigation Company; Ute Mountain Ute Tribe
irrigation; Full Service Irrigation; Fishery downstream of McPhee Reservoir; and recreation.

The DISTRICT's only current debt is the repayment contract with the Federal Government to
repay the local portion of the Dolores Project. The payments from irrigation, M&I users and
property taxes are collected to repay the debt service. The DISTRICT has no debt payments that
are in default.

Please refer to the 2000 Feasibility Study for detailed information.

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