BOARD00681

• Board Meeting Date: 1/26/2000
• Description: CF Section - Changes in Existing Loans - Consolidated Mutual Water Company - Fortune Reservoir Project
• Board Meetings - Doc Type: Memo

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The information in the following paragraphs was. for the rnost part. presented in the staffs
memo to the Board in Januarv 1999. The Financial Summary and Collateral sections have been -
updated based on information recentlv obtained. The Discussion and Recommendation sections -
have been revised to address the new funding reQuest.

Proiect Sponsor and Facilities

The Consolidated Mutual Water Company is a mutually owned, non-profit corporation. The
Company's service area includes unincorporated areas of Jefferson County as well as portions of
the cities of Lake wood and Wheat Ridge. Some of the major characteristics of the Company are
summarized in Table 1.

Table 1. Consolidated Mutual, Selected Characteristics

Service Area Population 85,000
Number of Taps 20,000
Total Avg. Annual Demand (Ac-Ft) 12,600
Avg. Monthly Residential Water Bill $32.00
Est.1990 Median Household Income $34,000

The Company has two service areas: (I) a Denver Contract Service Area utilizing treated water
purchased from the Denver Water Department and (2) the Maple Grove Service Area utilizing
diversions from Clear Creek and raw water purchased from Denver.

The Maple Grove system includes two existing raw water reservoirs with a combined capacity of
2,000 acre-feet and a water treatment plant, and provides service to an estimated population of
27,000. Three thousand six hundred acre-feet were supplied to the area in 1997. The proposed
Fortune Reservoir is intended to provide raw water storage for the Maple Grove Service Area.

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Water Ril?:hts

The Company owns shares in several Clear Creek ditches, which provide the bulk of the water
supply for the Maple Grove system. The estimated average yield of the Clear Creek shares along
with other water rights owned by the Company amounts to about 5,000 acre-feet per year. In
addition, the Company has a contract with the Denver Water Department for 443 acre-feet per
year of raw water for the Maple Grove service area.

Need for the Proiect

Under dry-year conditions, current Maple Grove area demands would be slightly in excess of the
safe annual yield of the system; by the year 2020 the supply/demand deficit is expected to be
about 1,700 acre-feet. The new reservoir would provide additional operational and seasonal
storage as well as carry-over storage to significantly increase the firm annual yield of the
Company's existing water rights. The additional storage capacity is expected to result in
adequate water supplies through build-out of the Maple Grove service area.

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