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Town of Keenesburg Agenda Item '7c
<br />March 21-22, 2006
<br />water for use in the irrigation of landscaping. A ratio of less than 10 is suitable for irrigation. The
<br />Laramie-Fox Hills water in the Town has been recorded at a level of 26.9. As a result, special soil
<br />management is necessary for successful irrigation of landscaping. The second water quality issue
<br />has to do with proper disinfection contact time. Currently, well water is pumped directly into the
<br />Town's water distribution system, which results in some consumers not receiving the proper 30
<br />minutes of disinfection contact time. The Town has undertaken a Phase 1 improvement project that
<br />will allow well water to be pumped to the water storage tank prior to being delivered to the
<br />distribution system. This will involve connecting the existing wells to a common header, connection
<br />to a blending station at the tank, and construction a new 12" supply line from the tank back to the
<br />distribution system. This $415,000 project, being accomplished by $240,000 from the Town's water
<br />reserves and a $175,000 Department of Local Affairs (DOLA) grant, will be completed in April 2006.
<br />The proposed Phase 2 project, which is the subject of the CWCB loan request, includes purchase
<br />of 139.6 AF of well water rights in the Lost Creek Groundwater Basin, and construction of 5.5 miles
<br />of pipeline to the Town. The purpose of the project is to improve the water quality by blending the
<br />new water with the existing Laramie-Fox Hills water. Blending the water from the Laramie Fox Hills
<br />Aquifer with that of the Lost Creek Aquifer has been evaluated, and providing a 50%-50% blend of
<br />the two waters shows that the SAR ratio drops below 10, and the fluoride level drops to
<br />approximately 1.5 mg/I, below the MCL of 2 mg/I. Concurrent with the CWCB request, the Town is
<br />applying for an additional DOLA grant of $500,000, which would be used to reduce the loan amount
<br />to $1,008,000, if approved.
<br />From 1990 to 2000, the Town experienced a 5% growth rate, and for long-term growth and financial
<br />projections, the Town is using a 4% growth rate. In 2005 the Town used 171 AF of the total 221 AF
<br />available from the Town's 5 wells. Based on its Water Supply Evaluation Report (2002), the Town
<br />projects that it will need a total of 483 AF by 2030. The proposed Lost Creek well water purchase
<br />of 139.6 AF, with a 50%-50% blend with existing water, will meet the Town's needs to the year
<br />2015. At that time new development will be required to bring additional water for blending.
<br />Feasibility Studies
<br />The Town, through its engineer JB Wright & Associates, Inc., has completed the feasibility study in
<br />accordance with CWCB guidelines. The study includes an assessment of alternatives to address
<br />the Town's water quality issues.
<br />Town of Keenesburg
<br />Keenesburg is a Colorado statutory town, incorporated in 1919. It manages its water utility through
<br />an enterprise fund, the Waterworks Operating Fund, and the Town relies on water sales, tap fees,
<br />and some property taxes to fund operations, maintenance and expansion of its system. The Town
<br />is governed by the Mayor Mark Gray, the Mayor Pro-Tem Tim Smith, a 5-member Board of
<br />Trustees, and a Town Clerk. The Town's 2006 budget projects that water sales will generate
<br />approximately $195,000 per year, property and specific ownership taxes $24,200 and tap sales an
<br />additional $140,000. Tap sales for 2006 and beyond are expected to increase from previous years
<br />due to development of a new multi-family project containing 60 units and a new residential
<br />neighborhood with 23 lots. Currently, the Town has $1,044,000 in water fund reserves.
<br />Water Rights
<br />The water rights being purchased are those associated with Well Permit No. 31652 - FP, and
<br />constitute a portion of the water rights that have been changed from irrigation to municipal and
<br />other uses, and have been authorized for exportation from the Lost Creek Designated Basin,
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