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<br />Agenda Item 29p,
<br />November 4, 1994
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<br />DISCUSSION
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<br />The District has been proactive and has a plan to assure their water supplies. This plan
<br />involves three phases, of which Phase 1 is the rehabilitation of the 3 existing Arapahoe wells,
<br />as discussed above, The recent drop of the water table below the pump for A-3 has forced the
<br />District's plan into the emergency category, at least for that well, If all Phase 1 work is delayed
<br />until July 1995 (the earliest date the CWCB could contract under the standard time table), severe
<br />water rationing and loss of fire protection is expected.
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<br />Phase 1 will assure water service for the 479 existing homes, and is not directed to provide
<br />water for additional growth, (Phases 2 and 3, not part of this application, will provide water
<br />for approximately 2000 additional homes,)
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<br />The District has about 6 months of slack time during the winter months, during which time
<br />,water demands will be manageable, This presents an opportunity to implement part of Phase
<br />1 (the rehabilitation of well A-3), and avoid a serious water shortage in the summer of 1995,
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<br />The District emerged from bankruptcy in June 1994, at a legal cost of $2.7 million,
<br />Bankruptcy activities have consumed the majority of the Districts time and financial resources,
<br />and although not an excuse, partly explains why Phase 1 of the plan was not implemented
<br />earlier.
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<br />The financial condition of the District is founded on the Bankruptcy ruling, which calls for
<br />repayment of debt service on $45 million in existing outstanding bonds by a mill levy of
<br />approximately 40 mills and by mandatory tap fees assessed to two builders, Repayment of the
<br />CWCB loan would be by water user fees only (the District is a water enterprise), and would
<br />amount to approximately $29,000 per year ($300,000 at 5% for 15 years,) This equates to $60
<br />per year per existing home ($5 per month per existing home,)
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<br />The District's consultant, Jim Jehn, has evaluated several alternatives, one of which is to
<br />make repairs to well A-3 at a cost of $65,000, This repair would be a short term solution, and
<br />would not qualify for emergency funding, Rehabilitation of all three wells has a total expected
<br />life of 15 years, with the pumps being rebuilt once during this term, and lowered at nominal
<br />cost.
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<br />The District's consultant, Jim Jehu, in cooperation with the USGS, has conducted investigations
<br />of the Arapahoe aquifer underlying the District. A core hole was drilled to a depth of 3000 feet,
<br />and all core retrieved for evaluation, Their studies show an available water supply of over
<br />100 years, assuming Phases 2 and 3 of the water plan are completed, and there is full build-out
<br />within the district boundaries, There is over 800 vertical feet of water in well A-3, which has
<br />a total depth of 2300 feet. Therefore, the alternative of simply repositioning a larger pump at
<br />a greater depth was selected,
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