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Snowmass Water & Sanitation District Agenda Item 17f May 12, 2009 (UPDATED May 22, 2009) Page 2 of 5 currently has no raw water storage facility and an interruption in direct flows could significantly impair the District in meeting its municipal demands. The District currently serves approximately 3,500 full time residents and an additional 10,000 to 12,000 residents during ski season. The District provides potable water service for customers within the District boundaries, which includes the Town of Snowmass Village. The District diverts water for treatment from East Snowmass Creek, East Snowmass Creek Spring, Brush Creek and Snowmass Creek. The District purchased the Reservoir (aka Lake Deborah) in 2008 to improve system reliability and plans to expand the Reservoir from its cunent 57 AF to approximately 225 AF in the near future. The District's system to divert water and pump water to and from the Reservoir will help regulate flows and provide a supply during times of diminished stream flows. Loan Feasibility Study The Loan Feasibility Study, titled "Feasibility of Construction of the Ziegler Reservoir Water Management System", dated March 2009, was prepared by McLaughlin Water Engineers, Ltd with assistance from Kit Hamby, District Manager. The study includes a report by W. W. Wheeler and Associates titled "Dry Year Yield Analysis for Snowmass Creek Water Supplies and Evaluation of Raw Water Storage Requirements" dated October 20, 2006. The Feasibility Study includes an engineer's cost estimate and financial statements. The study was prepared in accordance with the CWCB guidelines. The Snowmass Water & Sanitation District The Snowmass Water and Sanitation District is a Colorado Special District, created in 1964. As a quasi municipal entity, the District primarily derives income from property taxes, service fees and system development fees. The District utilizes a tiered rate structure for water billings. The District services a population equivalent of approximately 3,500 full time residents. Due to the areas resort based economy, the demand for water varies significantly throughout the year as the District's population occasionally soars to over 16,000 during the ski season. District water facilities include three diversions, a 5.2 MGD water treatment plant, 12 potable water storage tanks and approximately 44 miles of distribution pipelines. The district serves 5,000 EQR (Equivalent Residential) units and delivers an average of approximately 1,800 AF to its service area.. The District is approximately 3,900 acres in size and includes the Town of Snowmass Village. The District provides potable water/sanitation service within its boundaries and potable water service outside its service area to Brush Creek Metropolitan District. Water Rights The Project does not require additional water rights or water supplies. As part of the 2008 Ziegler Reservoir purchase, the District acquired the 1969 Ziegler Reservoir fill and storage right decree. The supply for the reservoir is from East Snowmass Creek by means of the East Snowmass Creek and Brush Creek Ditch and the Ziegler Pipeline Extension. This is an absolute water right to divert 1 cfs of water and store 57 AF in the reservoir. The rights have an appropriation date of 7/11/1962 and an adjudication date of 11/5/1971. The storage rights in the Reservoir are decreed for