15d_Directors Report

• Board Meeting Date: 7/21/2009
• Description: Directors' Report - CWCB Director
• Board Meetings - Doc Type: Memo

project is currently 90 % complete. The project has changed from its original scope to include
addition al piping and recharge sites. Additionally, the Company has purchased several Riverside
Ditch shares that will improve augmentation efforts. The Company was approved for an in crease of
$ 200,000 at the November 2006 Board Meeting to complete the additio nal recharge sites and for the
purchase of the Riverside Ditch shares. The se funds have not been distributed. The Company
elected to decline p resenting it case in court last year, given strong objectors and the lack of senior
water in its augmentation plan. Based on that decision the Company will not be able to operate and
are currently in the process of dissolving the Company. CWCB is currently working with a few
interested parties in purchasing the Company assets, which would be used to pay off or pay down the
Company’s existing debt with CWCB. A meeting with the Company’s Board of Directors has been
scheduled in August to determine a plan of action in the selling of these assets.
4 . Central Colorado Water Conservancy District - Water Rights Pu rchase and Gravel Pit Const.
Authorization: Construction Fund County: Adams, Weld, Morgan
Water Source: South Platte Project Yield: 12,300 acre - feet
Terms of Loan: $20,000,000 @2.75% for 30 - years Project Type: Water
Supply/Augmentation
The CCWCD , located in Adams, Weld, and Morgan Counties has a service area of 300 square
miles. The Sub district has 650 members with 966 junior wells and has operated an augmentation
plan for these member s since 1973. On December 17, 2001, the Colorado Supreme Co urt issued
a judgment that changed the manner of operation for substitute supply plans in Colorado. The
ruling stated that the State Engineer did not have the legal authority to approve substitute supply
plans. The Court also stated that substitute suppl y plans, such as the one operated by CCWCD
would either have to file for a decree in Water Court or follow new Rules and Regulations to be
issued by the State Engineer. This ruling has required CCWCD to acquire more senior water
rights as well as build a dditional storage to augment out - of - priority diversions. CCWCD is in
the process of acquiring additional senior water rights. To - date the District has been approved
for 3 - separate loans, $15,000,000, $5,000,000, and $20,000,000. The $20,000,000 loan was
recently approved at the November 2004 Board Meeting , for a total project loan authorization of
$40,000,000. The $15,000,000 and $5,000,000 were substantially completed in June of 2005.
Central has completed efforts for the GMS Sub - district and are currently working on
improvements to the WAS Sub - district. The WAS project is approximately 90 % complete. The
District has received a final ruling and were issued a decre The District’s decree is available for
review for anyone interested in the fina l ruling. From the ruling the WAS Sub - district will not
operate i n 2008, but are hoping to operate at approximately 10% in 2009, contingent upon
additional water being secured for post depletions in future years. The District is currently
investigating existing wells in the A rapahoe Groundwater Basin to meet their future water needs
as required by their decree, which stipulates a 7 - year banked or available water source in future
years. Furthermore, the District is working towards the completion of the Shores Project (Pond
D and E) and is pursuing the issuance of Bonds to cover current and future water and
infrastructures purchases that will improve their overal l decree. CWCB staff has indicated that it
will not grant parity if the District elects to pursue the issuance of a bond.
5 . Dolores Water Conservancy District - WETPACK
Authorization: SB 01 - 157 County: Montezuma
Water Source: Dolores River Project Yield: 6,000 acre - feet