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

Dolores Water Conservancy District - Dove Creek Secondary Water Supply System
July 28-29, 2003

AgendaItem 21 i

. Water Riahts

DWCD is under contract with the Bureau of Reclamation to receive 5,120 acre-feet of annual
Dolores project yield for M & I purposes. At the present time the District has leased or contracted
only a small portion of this water supply. DWCD will supply up to 300 acre-feet of itsM & I water to
the Dove Creek Secondary Water Supply System project.

Proiect DescriDtion

Working with the Town's Secondary Water Supply Committee, DWCD focused its evaluation on the
feasibility of a "secondary water supply system," The only available water supply for such a system
is the DWCD M&I water supply, and therefore this led to the natural conclusion of a DWCD
sponsored project. The citizens of Dove Creek could continue to use their treated water supply for
outside irrigation purposes, but this would not address the desire of the Town to spur economic
vitality. The residents of Dove Creek cannot afford $2.40 to $3.00 per 1000 gallons for an irrigation
water supply. The secondary system gives them an affordable alternative and will add significant
value to the residential property in Dove Creek, The Town of Dove Creek does not have the
manpower and the financial means to develop and operate the secondary water supply system.
The DWCD will be able to use its own manpower to construct and operate the system. This makes
the project affordable and the best alternative.

.

DWCD would construct the water delivery system. This would include a new pumping plant to
deliver up to 2 cfs, a5 to 10 acre-foot terminal storage reservoir located on the north edge of town,
32,000 feet of delivery pipeline (10"-8660 feet, 8"-7480 feet, 6"- 16,480 feet) and 307 individual taps
with water meters (% to 1-inch capacity), for supplying up to 10 gallons per minute per household.
Aerial mapping has been acquired and existing utility easements have been identified and
preliminary pipeline routes mapped. The system would be constructed using existing streets,
alleys and easements, at a depth of 3 feet. The Town plans to donate 10 acres for the reservoir
site.

The Total Project cost, based on the engineer's opinion of cost, is estimated to be:

1.
2.

Construction
Engineering

TOTAL

$ 892,227
89.223
$ 981,450

Schedule - It is anticipated that the required 200 tap commitments would be obtained in June-July
2003. If this occurs, the project would be constructed in 2003. If tap commitments cannot be
obtained during this time frame, project construction would likely occur in 2004. No permitting
issues have been identified.

Status of Tap Sign-ups - The process of signing-up residential tap commitments has begun. A
public information meeting for the project was held for residents of Dove Creek on June 17, 2002.
Also, the DWCD staff spent 6.5 hours in Dove Creek on June 30, 2002 to execute the first 75 tap
agreements. As of July 14, 2003 there have been 75 tap commitments obtained. A second sign-
up periOd is set for July 17, 12:00 p.m. to 6:00 p.m. in Dove Creek.

Financial Analvsis

.

The total estimated cost of the project is $981,450. The DWCD, on behalf of the Town, qualifies
for the Municipal Low Income interest rate. Staff is recommending a loan for a maximum amount
of $883,304 (approximately 90% of estimated project cost) for 10 years at an interest rate of 3.00%

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