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<br />DEC 26 '96 10:29AM AQUASAN NETWORK INC <br /> <br />P.3 <br /> <br />BACKGROUND <br /> <br />Water System History <br /> <br />Prior to 1952, Englewood was served water by the Denver Water Board. In 1948, however, the <br />citizens of Englewood voted to issue bonds to develop an independent water system. During this <br />period the City acquired water rights and developed the physical plant to treat and distribute the <br />water. <br /> <br />The first water right purchased were the Atchinson Ranch rights, located on the present site of the <br />Locheed-Martin complex near Ken-Caryl in the southwest Denver metropolitan area. Later in <br />the mid-1950's, partly in response to drought conditions, additional water rights were purchased' <br />on Bear Creek and the South Platte. Also during the 1950's the City of Englewood purchased <br />transmountain diversion water from the Blue River basin and Ranch CreeklMeadow Creek rights <br />near Fraser where water was delivered through the Moffat Tunnel. <br /> <br />With.the water rights secured the necessary physical plant was constructed. The intake structure, <br />located at the headgate of the Petersburg Ditch near Union Avenue and the South Platte River <br />was one of the first structures built. The water was pumped from there to the treatment plant, <br />located at South Windemere Street and West Layton Avenue, The plant had a capacity of25 <br />MGD when it began operation in Apri~ 1952. <br /> <br />In 1952, when the City began operation ofits water system, there were 6,185 taps on the system. <br />By 1961 the number of taps had grown to 13,500. During the 1960's, as the water system grew <br />at a rather rapid rate, the City began experiencing operational problems. To address these <br />problems the City constructed its second water treatment plant, the 7 MGD capacity Bear Creek <br />Treatment Plant. In 1965, the City also constructed the 6,000 acre-foot McLellan Reservoir near <br />County Line Road and Santa Fe Drive, <br /> <br />Also in 1965 the Southeast Englewood Water District terminated its contract with Englewood <br />and agreed to a supply contract witl:t the Denver Water Beard. This constitutedTlo~s of 4, 700 " <br />taps from the system or about 35.% of the total water taps at the time. This was a major financial <br />challenge for Englewood during this time of system. expansion. To help pay for many of the <br />system's recent upgrades, the City entered into agreements with AMAX, Thornton and Mission <br />Viejo. <br /> <br />The Allen Filter Plant was upgraded in 1977, and then again in 1980 to 34 MGD. With the <br />upgrade of the Allen Plant the Bear Creek Plant's operation has been suspended. The City has also <br />undertaken a program to upgrade its water system to replace older pipe and facilities with new <br />equipment, pipe and plant. <br /> <br />Englewood Conservation Plan <br /> <br />Page 2 <br />