PROJ00043

• Contract/PO #: C150100
• Contractor Name: East Dillon Water District
• Contract Type: Loan
• Water District: 5
• County: Summit
• Bill Number: Bill 02-1152
• Loan Projects - Doc Type: Feasibility Study

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supply system. The current purchase of the Vidler rights and wells enables the District to
independently operate and control the entire water supply system. including the physical structures
and system infrastructure. as \vell as the utilization of the supporting \\'ater rights. The following
sections provide the background information pertaining to the supply system. the need for the \vater
rights. and the sufficiency of the water rights.

Project Sponsor

The project sponsor forthe proposed watcrright purchase is the East Dillon Water District (District).
The District. which wa.s formed in 1969. operates as a special district in Colorado under Title 32
CRS. The District relies on user fees and property taxes to fund operations and maintain the water
supply system. As discussed in a later report Section. the District has provided detailed financial
analyses regarding the purchase and revenues (Appendices E and F). The District has undertaken
planning and development projects over the years to provide adequate services to its customers.
These projects have included analyses of water resources. facility construction. and master planning
for the water supply system.

The District currently services approximately I J 17 taps. will serve approximately 1370 by the
summer of 2002. and the build-out service capacity is estimated to be approximately 1.837 taps
(SBG. 1998). The water customers within the District are primarily residential units. including
single-family homes. duplexes. and condominiums. The District provides scrvice to an area of
Summit County referred to as "Summit Covc". which is approximately 1.8 square miles in size and
located about three miles south of the TO\\TI of Dillon and on the east bay of DilJon Reservoir. as
presented in the attached Figures 1 and 2. (SBG. 1998). The District contracts with a water
operations contractor to manage. operate. and maintain the water supply' system. The District utilizes
an integrated supply system. including ground water wells. pumps. distribution pipelines. treatment
and storagc facilities. which arc described in detail in the 1998 SBG report.

Loan Request

The District is requesting a 3D-year loan for S2.55 million. which represcnts 75 percent of the $3.40
million purchase price of the assets to be acquired. cwes Lending Policy No.8 states in part that
" the costs of waler rights acquisition are eligible for a ewcs loan if the purchase satistics an

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