BOARD01885

• Board Meeting Date: 7/28/2003
• Description: CF Section - New Loans - Dolores Water Conservancy District - Dove Creek Dual Water System
• Board Meetings - Doc Type: Memo

"

.

.

.

STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

TO:

Greg E. Walcher
Executive Director

Colorado Water Conservation Board Members

Bruce Johnson, P.E. ~. r .
Mike Serlet, P.E., Chie
Water Supply Planning nd Finance Section

FROM:

Rod Kuharich
eWeB Director

Dan McAuliffe
Deputy Director

DATE:

July 16, 2003

SUBJECT: Agenda Item 21 i, July 28-29, 2003 Board Meeting
Water Supply Planning and Finance Section - New Loans
Dolores Water Conservancy District - Dove Creek Dual Water System

Introduction

The Dolores Water Conservancy District (DWCD), acting by and through the Dolores Water
Conservancy District Water Activity Enterprise, is applying for a $883,304 Small Project Loan from the
Construction Fund to finance construction of a dual (secondary) water supply system for the Town of
Dove Creek (Town). The project would provide an alternative to treated water for outside irrigation,
and would be constructed, owned and operated by DWCD through an existing franchise agreement
with the town. The estimated total cost of the project is $981,450. Please see the attached project
summary and map.

Backaround

The Town of Dove Creek is located 30 miles NW of Cortez and 8 miles from the Utah state line in
Dolores County in southwest Colorado. The current population is 698 residents, and the Town
currently serves about 500 residential.and commercial water taps. The DWCD has been working
with the Town, and the Town's Secondary Water Supply Committee, over the last 3 years to
investigate options to provide a more cost effective raw water supply to meet outside irrigation
needs. Currently the Town uses existing treated water supply for outside irrigation. The Town has
been challenged with voluntary water restrictions for the past 3 summers, as well as the high cost of
water supply. A Franchise Agreement was adopted by the Town on July 11, 2002, granting DWCD
the non-exclusive right to sell and distribute untreated lawn and garden irrigation water through an
underground, piped secondary water system, both within the Town and in future annexation areas.
The term of the Franchise Agreement is 25 years, with an initial Franchise Fee of 5% of the annual
revenue.

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning