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DOLORES WATER CONSERVANCY DISTRICT <br />RESOLUTION 00 -07 <br />A RESOLUTION TO REQUEST A LOAN <br />FROM THE <br />COLORADO WATER CONSERVATION BOARD <br />WHEREAS, the Water for Everyone Tomorrow Package ( WETPACK) is an initiative of the <br />Dolores Water Conservancy District (District) to develop additional water supplies and delivery <br />facilities to expand the benefits of the Dolores Project ( "Project'); <br />WHEREAS, the District has been evaluating WETPACK options for the past five years; <br />WHEREAS, the District has completed a feasibility study, funded 50% by a loan from the <br />Colorado Water Conservation Board and 50% by District funds; <br />WHEREAS, through the feasibility study process, the District determined that the first phase of <br />the implementation of WETPACK would consist of purchasing both 1,500 Class B shares and <br />Totten Reservoir from the Montezuma Valley Irrigation Company (MVIC) which, together, will <br />yield approximately 7,840 acre -feet of water per year to irrigate approximately 4,000 acres of <br />land adjacent to the Dove Creek System, a feature of the Dolores Project; <br />WHEREAS, the cost to purchase the MVIC shares and Totten Reservoir, and to construct the <br />delivery facilities needed to irrigate the 4,000 acres, is estimated to be $8,067,000, escalated to <br />the year of construction; <br />WHEREAS, to fund the first phase of WETPACK, the District: <br />(a) has available approximately $3,500,000; <br />(b) will collect $250 per acre from owners of the land to be newly irrigated; and, <br />(c) will have available approximately $93,000 per year for up to 30 years by spreading <br />Project operation and maintenance ( "O &M ") costs over more land, but not reducing the annual <br />O &M cost to current District full service irrigators. <br />NOW, THEREFORE, BE IT RESOLVED, that to fund the remainder of the first phase of <br />WETPACK, without exceeding the funds available to the District, the Board of Directors of the <br />Dolores Water Conservancy District requests a loan from the Colorado Water Conservation <br />Board of up to $7,260,300, which represents 90% of the costs of Phase I of WETPACK, at an <br />interest rate of three and one -half percent (3'/z %) per year for thirty (30) years. <br />