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Center of Colorado Water Conservancy District Agenda Item 26a November 10, 2008 (UPDATED NOVEMBER 20, 2008) Page 2 of 4 augmentation for the plan in Case No. OSCW 111. The case adjudicated 706AF of average annual consumptive use from the two ditches. The first 200AF of water is the District's with the remaining 506AF used by Centennial through two 50 year lease contracts with the District. The construction of the Reservoir is a joint effort between the District and Centennial in order to maintain historical return flows to Michigan Creek (in part to meet the CWCB's instream flow rights on Michigan and Tarryall Creeks). The design and construction of the Reservoir is funded by the District and Centennial through a cost share of 1/7th and 6/7th respectively. The 400AF Reservoir is located adjacent to Michigan Creek in Park County neaz the town of Jefferson. Of the 400AF Reservoir capacity, 195AF is allocated to the District and 205AF is allocated to Centennial. 165AF of the District's 195AF is allocated to the return flow obligation and 30AF is excess capacity for use by the District for storage and augmentation purposes in its service area. Loan Feasibility Study The Loan Feasibility Study, titled "Feasibility Study for James Tingle Reservoir, June 20, 2008", was prepazed by James W. Culichia of Felt, Monson, & Culichia, LLC. The study includes: an ownership/lease agreement between District and Centennial, SEO approved construction plans prepazed by Deere & Ault Engineering, permits, an executed construction contract with Cat Lake, Inc., and the water rights decree in Case No. OSCW 111. The study was prepazed in accordance with the CWCB guidelines and includes engineering design and cost estimates. Center of Colorado Water Conservancy District The District was created in 1997 by election, to preserve and develop the water resources of Park County. The District is a Title 37 Special District with its office located in Fairplay, Colorado. The District is funded by a 1.0 mil ad valorem tax on real property in Pazk County. The District was "De-Bruced" in 2000 and is authorized to retain all excess collected revenues. The District held a successful election on November 4, 2008, requesting permission from Park County taxpayers to incur amulti-year debt for the purpose of financing the Project as required by TABOR. Water Rights The District owns the Randall Ditch and the Sessions Ditch. These ditch water rights have been changed from agricultural irrigation to municipal, industrial and augmentation in Case No. OSCW111. The source of water for the ditches are senior rights historically diverted from Michigan Creek (Randall Ditch: 1878: 11.75cfs & 1881: 11.75cfs) and (Session Ditch: 1880: 1.15cfs). When in priority, the District will store Randall and Session Ditch water in the new Reservoir as allowed in the decree. The Ditches were adjudicated for an average annual consumptive use yield of 706AF, of which the District controls the first 200AF. The remaining water is controlled by Centennial through two 50 year lease agreements. Additional water rights owned by the District include the joint ownership of 37AF of augmentation water in the Parmalee No. 2 & No. 3 Ditches and Flume Ditch on Deer Creek adjudicated in Case No. 02CW231. The District also is sole owner of Smelter Pipeline Reservoir on Mosquito Creek. The District is also a participant in the Chatfield Reservoir Reallocation Project