BOARD02039

• Board Meeting Date: 7/20/2004
• Description: CF Section - New Loans - Pinewood Springs Water District - New Reservoir and Raw Water Pipeline Construction and Water Rights Purchase
• Board Meetings - Doc Type: Memo

Pinewood Springs Water District
July 20-21.2004

Agenda Item 14e

President, Pam Ping, Treasurer and Dan DeKrey, Secretary. They are governed by the PSWD
Rules and Regulations, and employ a full time Water System Superintendent.

Water Riahts

PSWD currently owns 7 shares of Culver Irrigation Company stock that provides an average of 6.27
acre feet. The Culver water is used for PSWD's augmentation purposes.

In December 2002, PSWD filed for storage rights for five potential reservoir sites (including the
reservoir proposed for construction) However, an analysis done by McLaughlin Water Engineers in
October 2003, on flow records from 1993 to 2001, indicated that there would only have been water
available for diversion and storage in 4 of the 9 years studied. The decree for these storage rights
was recently signed on June 29, 2004.

The above storage will have a very junior right. In order to improve the reliability of water
availability for the new reservoir, the PSWD is also in the process of petitioning to join the Northern
Colorado Water Conservancy District (NCWCD), so that it may purchase Colorado-Big Thompson
(CBT) units to use for downstream exchanges. These units would be purchased on the open
market. PWSD is requesting $1,000,000 to purchase as many as 90 CBT shares. At a current
price of $11 ,500 per share, 87 shares could be purchased. Assuming an average allocation of 0.7
acre-feet per share, the 87 shares could yield about 60 acre-feet. At $15,000 per share, 67 units
could be purchased with an average yield of 47 acre-feet. In 2002 the City of Longmont required
that PSWD rent CBT units for credit to the City. At that time PSWD considered a scenario whereby
they might purchase as many as 90 CBT units in the future at $15,000 per unit, for a 6-month
supply of water. (According to NCWCD, CBT shares were selling for as high as $15,000 several
years ago.)

Proiect Description

The purpose of this project is to provide a means for PSWD to ensure an adequate and safe supply
of treated water to customers in the most cost effective manner. The following alternatives were
considered:

1. No-action alternative.
2. Modify an existing reservoir
3. Construct a new storage reservoir
4. Other solutions

Alternative No.1, No action alternative, was ruled out, as maintaining the status quo would
require continuing to haul treated water from off-site sources.

Alternative No.2, Modify an Existing Reservoir. One existing reservoir was looked at.
Expansion of Crescent Lake was evaluated but ruled out due to the cost per acre-foot of water.

Alternative No.3, Construct a New Reservoir - Four sites were looked at, Crow Lane Reservoir
#1 and #2 (a 20 foot and a 35 foot high dam), Maure Hollow, and the old Pinewood Reservoir site.

Alternative No.4, Other Solutions. A number of other solutions were looked at but ruled out due
to cost, reliability or availability. These included additional wells, consolidating water supply and
treatment with other communities, storage at City of Longmont's Buttonrock Reservoir, storage at
Lake Estes, and storage at Pinewood Lake.

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