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. I~ " WATER VALLEY SOUTH RAW WATER STORAGE AND DISTRIBUTION SYSTEM Feasibility Study Project Description, Goals and Need Water Valley is a mixed-use designed community which includes residential, commercial, open space / recreation and golf. It is located within the Town of Windsor, straddling the Cache La Poudre River, in Weld County. The Service Agreement with the Town of Windsor is included in Appendix A. From its inception Water Valley has been designed with a dual-water system, utilizing untreated water for all irrigation, both open space and private residential lots. This system greatly reduces the demand for treatment facilities, thereby resulting in a reduction of potable water tap fees of approximately 27% and of monthly water charges of about 35%. The first 35% of the development, comprised of910 residences, 24 acres of commercial space and about 60 acres of open space, is operating very successfully in this mode. The next major phase of the development will follow the same dual-water model, with water from irrigation rights stored in two lakes and pumped into the pipelines which serve as the distribution system. This infrastructure is needed in order to utilize the water rights associated with the land and to deliver the water to the points-of-use. A further need is to be able to store out-of-priority water as it becomes available, although the success of the project does not depend on this supply. Hydrology and Water Rights The source of water for the portion of the project in consideration and under construction at the present time is the B H Eaton Ditch, with direct flow rights out of the Cache La Poudre RiYer. Those rights include an 1864 appropriation of 29.1 cfs, 1865 appropriation of3.33 cfs, and 1882 of 9.27 cfs. Average annual diversions are 5,354 acre feet for the years 1950 through 1996. The deyeloper of Water Valley owns 51 % of the B HEaton Ditch. A copy of the stock certificate in the B H Eaton is included as Appendix B, and the State Engineer's diversion records as Appendix C. Project Owner The borrower will be Poudre Tech Metropolitan District. Poudre Tech Metropolitan District is the owner and operator of all infrastructure related to the Water Valley raw water storage and distribution system.