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<br /> ~ -- --, -, <br /> I 15 <br /> I BACKGROUND <br /> I The District <br /> I The Ute Water Conservancy District was organized under the Water Conservancy Act <br /> (37-45-101 et seq., C.R.S.) to provide domestic water service to the rural areas outside <br /> the cities and towns of the Grand Valley in Mesa County. The District service area <br /> I encompasses about 240 square miles in the Grand Junction metropolitan area with the <br /> exception of about seven square miles served by the City of Grand Junction and several <br /> smaller communities. <br /> I In September 1994, the District established the Ute Water Activity Enterprise in <br /> accordance with the Water Activity Enterprise Act. As required by Amendment One, the <br /> I Enterprise currently receives less than 10 percent of its'annual revenue in taxes and has <br /> the power to issue its own revenue bonds and incur multi-year indebtedness. <br /> I The District's current average annual water demand is about 8,600 acre-feet. As of 1997, <br /> the customer base consisted of 17,437 taps (a service area population of about 60,000 <br /> people) in the following categories with revenues as shown in Table 1: <br /> I <br /> Table 1 . Ute WCD Taps and Water Service Revenues by Customer Class, 1997 <br />I I Customer Class No. of Tans Revenue <br />I <br />I Residential 16,263 $3,300,159 <br />I <br />, I Multiple Residential (1) 470 516,378 <br /> Commercial or Industrial 700 1,158,936 <br /> Bulk Meters (2) 4 311,101 <br /> I Totals 17,437 $5,316,574 <br /> (1) Multiple Residential includes 3,096 customers <br /> I (2) Bulk Meters includes 2,193 customers <br /> Plateau Creek Pioeline <br /> I The District's primary source of water supply is from Plateau Creek, a tributary of the <br /> Colorado River originating in Plateau Creek Canyon between Grand Mesa and <br /> I Battlement Mesa east of Grand Junction. Water is collected from the tailrace of the <br /> Lower Molina Power Plant of the Bureau of Reclamation's Collbran Project and is <br /> transmitted 4.5 miles to storage in Jerry Creek Reservoirs. From the reservoirs, water is <br /> I transmitted by gravity to the District's water treatment plant in the existing 24-inch <br /> diameter Plateau Creek Pipeline, a distance of about 15 miles, in an alignment generally <br /> following Plateau Creek as shown on Figure 1 (reproduced here with the permission of <br /> I Camp Dresser & McKee). <br /> The pipeline has inadequate hydraulic capacity for existing demands, shows signs of <br /> I deterioration, and is located in an alignment subject to landslides and frequent stream <br /> I 2 <br /> I <br />