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Town of Bennett Agenda Item 27a <br /> November 19-20,2014 Board Meeting(Updated November 21, 2014) <br /> Page 2 of 5 <br /> Background <br /> The Town, located 25 miles east of Denver, provides water to its residents from the 11 wells drilled <br /> into the Denver, Upper Arapahoe, Lower Arapahoe, and Laramie-Fox Hills aquifers. In 2013, Pure Cycle <br /> Corporation became the operator of the Town's water system and in 2014 completed a Water Priorities <br /> Report. The report identified operational reliability and efficiency issues within the Town's water <br /> system. If the Town's primary well were to fail, there would be an inadequate supply to meet <br /> summertime demands without severe water restrictions. The report concluded that both well #3 and #6 <br /> should be replaced. <br /> As a result of the report, the Town hired Jehn Water Consultants, Inc. to visit the well sites. Jehn <br /> Water Consultants verified the location of the wells and recommended locations for drilling. <br /> Well#3 is a Laramie-Fox Hills aquifer well and needs to be re-drilled as it failed due to age. Well #3 <br /> historically produced 23 acre-feet annually. It failed in 2005. <br /> Well#6 is a dually completed well drawing water from both the Denver and Upper Arapahoe aquifers. <br /> It #6 primarily supplies the commercial water demands in the Town. The well's production has dropped <br /> to approximately 40 acre-feet annually. It has not failed, but production has diminished to a point that <br /> replacement of the well is necessary. <br /> Loan Feasibility Study <br /> Trish Stiles, Town Administrator, prepared the Loan Feasibility Study, titled "Feasibility Study, Town of <br /> Bennett, Well #3 and Well#6 Replacement Project," dated October 2014. Technical support was <br /> prepared by Jehn Water Consultants and Pure Cycle Corporation. The study includes an alternative <br /> analysis and construction cost estimate. The feasibility study was prepared in accordance with the <br /> CWCB guidelines. <br /> Borrower-Town of Bennett <br /> The Town was incorporated in 1929 and currently has a population of 2,500 residents. It is governed by <br /> Mayor Sue Horn and six members of the Board of Trustees. It manages its water system through a <br /> Water Enterprise Fund. User fees fund the enterprise. <br /> The average monthly water bill is approximately $53. On average, the Town delivers 261 acre-feet <br /> annually; therefore it is not a Covered Entity as defined in §37-60-126(1)(b), C.R.S. (2014) and not in <br /> need of a water conservation plan in order to execute a loan contract with the CWCB. <br /> Water Rights <br /> The Town relies on Denver Basin aquifers to meet water demands. It has two water systems: the north <br /> and the south system. The permit number and annual appropriation amount for each well are provided <br /> in Table 1: <br /> TABLE 1: WATER RIGHTS <br /> Annual <br /> Well Permit No. Aquifer Appropriation <br /> (AF/yr) <br /> North System <br /> 3 48425-F Laramie - Fox Hills 207a <br /> 4 32481-F Arapahoe 30b <br /> 5 32480-F Denver/Arapahoe` 60b <br /> 6 17071-F Denver/Arapahoe` 100b <br /> 7 32482-F Arapahoe -b <br /> 8 48424-F Laramie - Fox Hills 207a <br />