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Town of Dillon May 12, 2009 (UPDATED May 22, 2009) Page 3 of 6 Agenda Item 17b The Town currently has 1,695 EQRs on line or 81 % of build-out capacity. The 2008 water usage was approximately 300 AF. The Town operates its water system using a Water Enterprise Fund. Revenues are generated from customers through the monthly volume charge and monthly capital fee. The 2009 rates are as follows: Monthly Capital Fee $17.00 per Single Family Home (EQR) Monthly Volume Charge $3.00 per 1,000 gallons for usage 15,000 gallons and less $4.50 per 1,000 gallons for usage over 16,000 gallons Water Tap Fee $7,000 per EQR Water Rights Summit County and the Town of Dillon acquired a water right for the Old Dillon Reservoir Enlargement in Case No. 93CW288 and an additional amount in 07CW223. An IGA gives the County the right to enlarge the Reservoir and gives the Town the option to participate. Water rights and agreements associated with Old Dillon Reservoir are: Decree Description Amount CA1803 Original Decree for Old Dillon Reservoir and the Dillon Ditch 46AF & l Ocfs 93CW288 Old Dillon Reservoir First Enlargement from Salt lick Gulch lOcfs & 150AF 07CW223 Old Dillon Reservoir Second Enlargement 60AF enlarge. 86CW329 Town of Dillon Blue River Intake Scfs 86CW330 Exchange from Salt Lick Gulch to the Town's Blue River Intake 3.Scfs to 250AF 07CW226 Exchange Summit County's water from other reservoirs to Old Dillon Res. 8cfs Project Description The purpose of this Project is to utilize Old Dillon Reservoir and maacimize its regional potential based on a cost-benefit assessment of the following four alternatives: Alternative No. 1- No-action was considered unacceptable since the Reservoir is currently under a zero gage restriction by the SEO and will require repair. This alternative does not provide the Town with a desperately needed alternative water source. Alternative No. 2(SELECTED) - Enlarge Old Dillon Reservoir to serve Summit County, the Town of Dillon and possibly the Town of Silverthorne. Alternative No. 3- Provide water supply needs without enlarging Old Dillon Reservoir for Summit County, the Town of Dillon and the Town of Silverthorne. This alternative would use the existing Dillon Ditch and a newly constructed outlet from Old Dillon Reservoir to Dillon Reservoir to route Dillon Ditch water to the Town of Dillon and to put water into storage in a pool in Dillon Reservoir, possibly affecting the water supply contemplated by Old Dillon Reservoir First Enlargement without constructing the enlargement. This requires significant assistance from Denver Water. This was ruled out since Denver Water has not indicated that useful space in Dillon