BOARD00203

• Board Meeting Date: 11/19/2001
• Description: CF Section - Construction Fund New Loans - East Dillon Water District - Purchase of Water Rights
• Board Meetings - Doc Type: Memo

1. a portfolio of senior water rights with a total decreed consumptive use of 101 acre-
feet, of which seven acre-feet are exchanged for storage in Dillon reservoir,

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Water is physically obtained from ten shallow wellsilLthe Soda Creekalluviumlocated
within the boundaries of the EDWD. The Soda Creek wells are owned byVidler but are
a part of the pending water rights acquisition by the EDWD. The District owns and
operates the water treatment, distribution and treated water storage components of the
system.

The current annual water demand ofthe District is lIbout 300 acre-feet with consumptive
use estimated at 30 acre-feet. Build-out water demand is estimated at 600 acre-feet per
year with about 56 acre-feet of consumptive use. BBA has evaluated the yield of the
water rights to be purchased as well as the expected yield of the Soda Creek alluvium and
is of the opinion that both are generally adequate for build-out water demands.

Pronosed Purchase

Under the 1983 Memorandum of Agreement between EDWD and Vidler, Vidler is the
exclusive source of water to the District. In December of 2000, the District entered into a
Purchase Agreement with Vidler to acquire the assets that provide water to the District
under the 1983 MOA.

The assets to be acquired in the proposed purchas~ include:

2. the ten Soda Creek Wells, and

3. the right to use five acre-feet of storage in Dillon Reservoir subject to conditions set
forth under a 1988 MOA between Vidler and the CWCB (discussed in the following
section ofthis memo).

The assets are summarized in Table 1, attached.

As mentioned above, the EDWD has relied exclusively upon these water rights since the
District was established. The District believes that no additional legal action is required
and no additional permitting actions are necessary to utilize the water rights or the wells.

The assets are being acquired through two agreetP-ents. In December of 2000, the EDWD,
Vidler and the City of Golden concluded an Assi:gnment Agreement in which the EDWD
agreed to pay Golden and Vidler a total of$300,000 for 20 acre-feet of consumptive use
of the Rice Ranch water rights listed in Table 1. That transaCtion has been completed. In a
Purchase Agreement also dated December 2000 between the EDWD and Vidler, the
District agreed to pay Vidler $3.1 million for the remainder ofthe assets listed in Table 1. .
The EDWD is intending to close on this agreement in July of2002.

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