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. Durango West Metropolitan District #2 p.o, Box 1092 Durango, Cola, B1302 November 24, 1987 /; ,-;" ~ / I' NOV' I ~(l 1.981 William McDonald, Director Colorado Water Conservation Board 1313 Sherman Street Denver, CO 80203 , -, "'...':""r ~, Re: Durango West Water Supply project Dear Mr. McDonald: Durango West Metropolitan District No.2, in partnership with Durango West Metropolitan District No. l, would like to thank you for the assistance that the CWCB provided in completing the feasibility study on the Durango West Water Supply Project. The draft of the feasibility study was provided to your office on November 16, 1987. We understand that the project will be considered at the CWCB meeting on December lOth; we will have representatives and our engineer at that meeting. The purpose of this letter is to request that the CWCB fund 100 percent of the project, which is estimated to cost about $800.000.00, plus about $200,000.00 for a treatment plant. The reason for the request is that the two Metropolitan Districts cannot bond half of the $800,000.00 plus the $200,000.00 for the treatment plant. The Metropolitan Districts are being forced to construct a new sewage plant by the Health Department, which will require most of the bonding capability. The bond counsel, George K. Baum & Company, estimates that there will be about $200,000.00 in unused bonding capability after financing the sewer plant. The Metropolitan Districts propose to use that capability to fund a water treatment plant. The water supply and sewage facilities constructed by the original developers, and for which the Districts are still paying, are not adequate. The original developers are twice removed and litiga- tion would be futile. District No. 1 has only enough water for in-house use, which results in once a week watering restrictions in the summer. District No. 2 has enough water for about 170 homes, but has 175 presently, and is growing by lO to lS homes per year; this water supply was installed after the original develop- ers and cannot be increased. The result is that Durango West cannot bond 50 percent of the $800,000.00 and cannot construct the project, unless the CWCB would provide 100 percent. There are simply no other sources of financing.