BOARD00711

• Board Meeting Date: 1/22/2003
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

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It is unclear to us whether any Proposed Program will be acceptable to the federal government.

South Platte Rules and Regulations: In December, thejudge in Division 1 Water Court ruled that
the State Engineer did not have authority to approve out of priority diversions pursuant to the South
Platte Rules and Regulations, which were developed last spring. The Attorney General will file an
appeal to the State Supreme Court.

This decision is puzzling given the promulgation of similar rules and regulations for the Arkansas and
approved by the judge in Division 2, and the Supreme Court's decision in the Empire Lodge case.

In addition, Judge Hays' decision deserves careful consideration in light of the apparent statutory
authority provided to the State Engineer to promulgate rules and regulation for ground water
diversions.

It is too early to speculate on the potential implications of the activities too date. However, it is clear
that a significant impact to South Platte water users and South Platte communities could occur if a
solution is not-reached in the next couple months. The possible solutions range from simply
extending the provisions of House Bill 1414 to more sweeping legislation. The parties involved in
the rule making will be meeting over the next several weeks to evaluate options.

North Platte River Water Use: We received Wyoming's report on the use of water from the North
Platte River above Guernsey Reservoir and the North Platte River and tributaries above Pathfinder
for 2001. Copies can be provided upon request.

Cherry Creek PMP Study: A draft final report from Applied Weather Associates was submitted to
for review. After we comment, the report will go to the technical review panel and to the National
Weather Service for review. There will be a final project meeting after all the reviews have been
completed.

Water Surcharge: Denver Water has adopted a 20 percent water developmentldrought surcharge.
For new development, the rate for a V. inch single family residential taps within the City and County
of Denver and Denver Water Service Areas the basic rate is $1,200 inside Denver and $1,675 outside
Denver. There is also a charge per square foot of gross lot size ($.29 inside Denver and $.40 outside).
There are also charges for multifamily residential taps, and for taps of varying sizes up to a surcharge
of nearly $500,000 for a 12-inch tap. For more information visit Denver Water's web site. Every
major municipal water provider on the Front Range is taking similar steps.

Denver Water Rebates: Denver water customers who replace toilets and clothes washers with
water-efficient models will get cash back. The incentive program, which began Nov. 1, will offer a
$100 rebate for each older model toilet replaced with one certified ultra-low-volume (UL V). Older
model toilets use anywhere from 3 to 5 gallons per flush; UL V s use 1.6 gallons per flush. The rebate
is limited to two toilets per household. Additionally, a $125 rebate is available to customers who
replace traditional top loading clothes washers with horizontal axislfront loading washers. While a
typical clothes washer uses 45 gallons per load, horizontal axis/front loading models use only 20
gallons. The rebate is limited to one washer per household.

The program is open to all single and multi-family residential customers in Denver Water's service
area.

The $1.2 million program is being funded by money collected from recently imposed surcharges on
new water taps. In September, the board directed water department staff to develop specific incentive
programs that would reduce winter water use among customers.

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