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TC Res. No. 2005-22 APPROVING SUPPLEMENTAL WATER LEASE BETWEEN THETOWN OF AVON, COLORADO RESOLUTION NO. 05-22 Series of 2005 A RESOLUTION APPROVING SUPPLEMENTAL WATER LEASE BETWEEN THE TOWN OF AVON AND UPPER EAGLE REGIONAL WATER AUTHORITY FOR THE PROVISION OF WATER SERVICE FOR THE TOWN OF AVON, EAGLE COUNTY, COLORADO. WHEREAS, an Amended and Restated Water Lease was entered into between the Town of Avon (Town) and Upper Eagle Regional Water Authority (Authority); and WHEREAS, the Amended and Restated Water Lease provided for the Lease of 348.17 acre-feet of consumptive water rights; and WHEREAS, the Authority approval of the Amended and Restated Water Lease limited the development that would be served by the 348.17 acre-feet of consumptive water rights to 3975 single family equivalents (SFE's); and WHEREAS, the Town desires to supplement the consumptive water rights leased by the Amended and Restated Water Lease to provide for additional potential development; and WHEREAS, the Town has 448 acre-feet of consumptive water rights available to serve development within the area as defined in the Town's augmentation plan decreed on September 7, 1988 in Case No. 84-CW225; and WHEREAS, water consumption studies and analysis have shown that 448 acre-feet of consumptive water rights will serve a development level of at least 4,984 SFE's; and WHEREAS, the Supplemental Water Lease provides for the lease of 448 acre-feet of consumptive water rights to service development up to 4,984 SFE's within the area defined in the Town's augmentation plan. NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, that the Supplemental Water Lease as hereto attached, is hereby approved and authorized for execution by the Town of Avon upon corresponding and unconditional approval by the Upper Eagle Regional Water Authority. ADOPTED THIS ► 0 DAY OF OF Ay*4A A T: rarry ivic envy To k SE L , 2005. F AVON, COLORADO pAta, C., Ronald C. Wolfe, Mayor SUPPLEMENTAL WATER LEASE This Supplemental Water Lease (the "Supplemental Lease") is entered into to be effective as of the day of 2005, (the "Supplemental Effective Date"), by and between the Town of Avon (the "Town") as Lessor and the Upper Eagle Regional Water Authority (the "Authority") as Lessee. , WHEREAS, -an Amended and Restated Water Lease (the "Restated Lease") was entered into to be effective as of the 1" day of January, 1998, (the "Effective Date"), by and between the Town and the Authority; -and WHEREAS, under the Restated Lease, the Town leased to the Authority water and water rights, ditches and ditch rights, wells and groundwater rights, springs and spring rights and reservoirs and storage rights described as an undivided 77.7% interest in and to certain water rights more particularly described on Exhibit A attached to the Restated Lease (the "Water Rights"); and WHEREAS, the Restated Lease states that it includes 348.17 consumptive acre-feet (77.7%) of the 448 consumptive acre-feet quantified in the augmentation plan decreed on August 14, 1980 in Case No. W-3664, Water Division No. 5, as amended in the augmentation plan decreed on September 7, 1988 in Case No. 84CW225, Water Division No. 5; and . . WHEREAS, the Town now desires to supplement the water rights and other interests that are leased under the Restated Lease by leasing to the Authority the remaining undivided 22.3% interest in and to the water rights and the remaining 99.83 consumptive acre-feet (22.3%) of the 448 consumptive acre-feet that were described on Exhibit A to the Restated Lease (the "Supplemental Water Rights"); and WHEREAS, the Parties now desire to clarify the effect of the Restated Lease, as supplemented by this Supplemental Lease; NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. The Restated Lease remains in full force and effect as supplemented by this Supplemental Lease. 2. The Town hereby leases to the Authority the water and water rights, ditches and ditch rights, wells and groundwater rights, springs and spring rights, and reservoirs and storage rights described on the attached Exhibit A (the "Supplemental Water Rights"). The terms and conditions of the Restated Lease and the terms and conditions of this Supplemental Lease shall apply to the Water Rights and the Supplemental Water Rights. In addition, the Authority and the Town agree as follows: 3. The total 448 consumptive acre-feet leased to the Authority under the Restated Lease and this Supplemental Lease are adequate on an average annual basis to replace lake evaporation of 42.39 acre-feet, to provide a maximum of 19.58 acre-feet of consumptive use for non-potable irrigation within the Town and to provide water service to all development within the Town's Augmentation Plan area covered by Case Nos. W-3664 and 84CW225 up to 4,984 SFE's. References to "SFE's" herein are to an SFE as defined in Section 2.31 of the Rules and Regulations for Water and Sewer Service, Eagle Rivet Water Sanitation District/Upper Eagle Regional Water Authority; Revised 01/28/04 and include the definitions in Sections 2.1, 2.13, 2.25, and the fractional "SFE equivalents for residential units (1.0 plus pro-rated additions over 3,000 square feet), efficiency units (0.50 SFE), accommodation units (0.35 SFE), expansions or remodels, and commercial equivalents based on meter size that are contained in, the Schedule of Fees and Charges for the Town of Avon, Effective January 1, 2005, that are attached to the Rules and Regulations for Water and Sewer Service, as Appendix A. 4. In the event the water level in Benchmark Lake is drawn down in some future year or years for maintenance or repair of the structure or facility or for any other cause, the Town may use the Water Rights and the Supplemental Water Rights that are not-being used for the then current level of municipal service, lake evaporation and non-potable irrigation stated in Paragraph 3, above, to fill Benchmark Lake. IN WITNESS WHEREOF, the Parties hereto have caused this Lease to be executed in their corporate names, all by the proper officers duly authorized thereto, to be effective as of the Effective Date, but actual execution having been completed on the day of 2005. UPPER EAGLE REGIONAL WATER AUTHORITY ATTEST: By: Secretary ATTEST: By: By: Chairman TOWN OF AVON By: 2 Town Manager EXHIBIT A Water Rights Town of Avon An undivided 22.3% interest in the following water rights (the "Supplemental Water Rights"), as changed, quantified, exchanged, and/or augmented in Case' Nos. W-3664, 80CW64, 84CW225, 85CW612, 86CW200, 92CW291, 94CW22, 99CW172, OOCW083, and 01CW015, all in Water Division No. 5: 1. (a) Metcalf Ditch, priority no. 146, in the amount of 6.0 cfs, decreed on March 5, 1901, in Case No. CA 385, Water Division No. 5. (b) Metcalf Ditch I" enlargements, priority no. 415, in the amount of 4.07 cfs and 0.8 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. (c) Metcalf Ditch -2nd Enlargement, priority no. 528, in the. amount of 9.13 cfs, decreed on July 23, 1958, in Case No. CA 1193, Water Division No. 5. (d) Nottingham & Puder Ditch, priority no. 148, in the amount of 2.5 of the 10.00 cfs, decreed on March 5, 1901, in Case No. CA 385, Water Division No. 5. (e) Nottingham && Puder Ditch I" Enlargements, priority no. 377, in the amounts of 1.0 and 2.21 of the 4.42 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. (f) Nottingham & Puder Ditch (CAC No. 1), priority no. 377, in the amounts of 1.28 and 1.0 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. (g) Nottingham & Puder Ditch (CAC No. 2), priority no. 399, in the amount of 5.0 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. (h) Nottingham & Puder Ditch (Grace Park), priority no. 530, in the amount of 0.5 cfs, decreed on July 23, 1958, in Case No. CA 1193, Water Division No. 5. (i) Nottingham & Puder Ditch Pump & Pipeline, priority no. 527, in the amount of 4.235 of the 13.58 cfs, decreed on July 23, 1958, in Case No. CA 1193, Water Division No. 5. 0) Hurd Ditch, priority no. 147, in the amount of 2.0 cfs, decreed on March 5, 1901, in Case No. CA 385, Water Division No. 5. (k) Johnson & Howard Ditch L" Enlargement, priority no. 350, in the amount of 0.28 cfs, decreed on May 21, 1920, in Case No. CA 734, Water Division No. 5. (1) Johnson & Howard Ditch 2nd Enlargement, priority no. 424, in the amount'of 5.93 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. 0\ (m) Johnson & Howard Ditch 3d Enlargement, priority no. 535, in the amount of 2.8 cfs, decreed on July 23, 1958, in Case No. CA 1193, Water Division No. 5. 2. H.A. Nottingham and Sons, Inc. Water Treatment and Storage Project, in the amount of 3 cfs, decreed on December 31, 1971, in Case No. W-327, Water Division No. 5. 3. Nottingham Domestic Pipeline, in the amount of 1 cfs of the 3.0 cfs decreed on December 31, 1973, in Case No. W-2130, Water Division No. 5. 4.. Avon Metropolitan Municipal Water System, in the amount of 5.0 cfs, decreed on December 31, 1977, in Case No. W-3666, Water Division No. 5. 5. Avon Metropolitan Municipal Water System .1st Enlargement, in the amount of 5.0 cfs, decreed on December 31; 1984, in Case No. 84CW225, Water Division No. 5. 6. The Augmentation Plan decreed on August 14; 1980, in-Case No. W-3664, Water Division No. 5, insofar as it relates to 99.83 consumptive acre-feet (22.3%) of the 448.0 consumptive acre-feet quantified therein that are associated with the water rights described in paragraphs 1(a) through (m) above, and including the other rights and, benef is of the augmentation plan decreed therein, as amended in the augmentation plan decreed on September 7, 1988, in Case No. 84CW225, Water Division No. 5. 2 ' N© Memo- To: Honorable Mayor and Town Council ` hiru: Lary Brooks, Town Manager From: Norman Wood, Town Engin Date: May 5, 2005 Re: Resolution No. 05-22, Series of 2005, A Resolution Approving Supplemental Water Lease Between the Town of Avon and Upper Eagle Regional Water Authority for the Provision of Water Service for the Town, of Avon, Eagle County, Colorado. Summary: A Draft of the Supplemental Water Lease as presented for approval in attached Resolution No. 05-22 was presented to the Board of Directors of the Upper Eagle Regional Water Authority and their April meeting.. While no official action was taken at that meeting the board did indicate that the terms of the Supplemental Water Lease will be acceptable to them., The terms of this Supplemental' Water Lease are also in general conformance with the terns presented the town council in January of this year and -as outlined in attached letter dated January 13, 2005, from Gary Greer to Glen Porzak. We believe the Supplemental Water Lease addresses the major issues and concerns of the Town with respect to current Amended and Restated Water Lease and recommend approval of Resolution No. 05-22 approving the Supplemental water Lease. Discussion: The Supplemental Water Lease was developed following extensive water consumption and potential development studies and analysis within the Town. The development of the Supplemental Water Lease also involved numerous and lengthy negotiation sessions with the Upper Eagle Regional Water Authority staff and consultants. We believe the Supplemental Water Lease developed in response to these studies, analysis and negotiations represents a'fair and equitable lease'agreement between the Town and the Authority. We believe it allows for development within the town consistent with the water rights leased to the Authority and provides the Authority with adequate water rights to serve anticipated development within the town. Recommendation: We recommend approval of Resolution No. 05-22, Series of 2005, A Resolution Approving Supplemental Water Lease Between the Town of Avon and Upper Eagle Regional Water Authority for the Provision of Water Service for' the Town of Avon, Eagle County, Colorado. V Proposed Motion: I move to approve Resolution No 05-22, Series of 2005, A Resolution Approving Supplemental Water Lease Between the Town of Avon and Upper Eagle Regional Water Authority for the Provision of Water Service for the Town of Avon, Eagle County, Colorado. Town Manager Comments: Attachments: Exhibit A - Resolution No. 05-22 Exhibit B - Letter dated January 13, 2005 from Gary Greer to Glen Porzak 1AEngfne=g\Water\WaW RightsNemo Res 05-22.Dm 2 r V OR TOWN OF AVON RESOLUTION NO. 05-22 Series of 2005 A RESOLUTION APPROVING SUPPLEMENTAL WATER LEASE BETWEEN THE TOWN OF AVON AND UPPER EAGLE REGIONAL WATER AUTHORITY FOR THE PROVISION OF,WATER'SERVICE FOR THE TOWN OF AVON, EAGLE COUNTY, COLORADO. WHEREAS, an Amended and Restated Water Lease was entered into between the Town of Avon (Town) and Upper Eagle Regional Water Authority (Authority); and WHEREAS, the Amended and Restated Water Lease provided for the Lease of 348.17 acre-feet of consumptive water rights; and WHEREAS, the Authority approval of the Amended and -Restated Water Lease limited the development that would be served by the 348.17 acre-feet of consumptive water rights to-3975 single family equivalents (SFE's); and WHEREAS, the Town desires to supplement the consumptive water rights, leased by the Amended and Restated Water Lease to provide for additional potential development; and WHEREAS, the Town has 448 acre-feet of consumptive water rights available to serve development within the area as defined in the Town's augmentation plan decreed on September 7, 1988 in Case No. 84-CW225; and WHEREAS, water consumption studies and analysis have shown that 448 acre-feet of consumptive water rights will serve a development level of at least 4,984 SFE's; and WHEREAS, the Supplemental Water Lease provides for the lease of 448 acre-feet of consumptive water rights to service development up to 4,984 SFE's within the area defined in the Town's augmentation plan. NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, that the Supplemental Water Lease as hereto attached, is hereby approved and authorized for execution by the Town of Avon upon corresponding and unconditional approval by the Upper Eagle Regional Water Authority. IAEngineering\Water\UERWA\Res 05-22.doc 3 r ADOPTED THIS DAY OF , 2005. TOWN COUNCIL TOWN OF AVON, COLORADO Ronald C. Wolfe, Mayor ATTEST: Patty McKenny Town Clerk IAEngineering\Water\UERWA\Res 05-22.doc j TOWN OF AVON RESOLUTION NO. 05-22 Series' of 2005 A RESOLUTION APPROVING SUPPLEMENTAL WATER LEASE BETWEEN THE TOWN OF AVON AND UPPER EAGLE REGIONAL WATER AUTHORITY FOR THE PROVISION OF WATER SERVICE FOR THE TOWN OF AVON, EAGLE COUNTY, COLORADO. WHEREAS, an Amended and Restated Water Lease was entered into between the Town of Avon (Town) and Upper Eagle Regional Water Authority (Authority); and WHEREAS, the Amended and Restated Water Lease provided for the Lease of 348.17 acre-feet of consumptive water rights; and WHEREAS, the Authority approval of the Amended and Restated Water Lease limited the development that would be served by the 348.17 acre-feet of consumptive water rights to 3975 single family equivalents (SFE's); and WHEREAS, the Town desires to supplement the consumptive water rights leased by the Amended and Restated Water Lease to provide for additional potential development; and WHEREAS, the Town has 448 acre-feet of consumptive water rights available to serve development within the area as defined in the Town's augmentation plan decreed on September 7, 1988 in Case No. 84-CW225; and WHEREAS, water consumption studies and analysis have shown that 448 acre-feet of consumptive water rights will serve a development level of at least 4,984 SFE's; and WHEREAS, the Supplemental Water Lease provides for the lease of 448 acre-feet of consumptive water rights to service development up to 4,984 SFE's within the area defined in the Town's augmentation plan. NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, that the Supplemental Water Lease as hereto attached, is hereby approved and authorized for execution by the Town of Avon upon corresponding and unconditional approval by the Upper Eagle Regional Water Authority. I:\Engineering\Water\Water Rights\Res 05-22.doc 6 ~i 'ADOPTED THIS DAY OF , 2005. TOWN COUNCIL TOWN .OF AVON, COLORADO Ronald C. Wolfe, Mayor ATTEST: Patty McKenny Town Clerk IAEngineering\Water\Water Rights\Res 05-22.doc •1 SUPPLEMENTAL WATER LEASE This Supplemental Water Lease (the "Supplemental Lease") is entered into to be effective as of the day of 2005, (the "Supplemental Effective Date"), by and between the Town of Avon (the "Town") as Lessor and the Upper Eagle Regional Water Authority (the "Authority") as Lessee. WHEREAS, an Amended and Restated Water Lease (the "Restated Lease") was entered. into to be effective as of the I" day of January, 1998, (the "Effective Date"), by and between the Town and the Authority; and WHEREAS, under the Restated Lease, the Town leased to the Authority water and water rights, ditches and ditch rights, wells and groundwater rights, springs and spring rights and reservoirs and storage rights described as an undivided 77.7% interest in and to certain water rights more particularly described on Exhibit A attached to the Restated Lease (the "Water Rights"); and WHEREAS, the Restated Lease states that it includes 348.17 consumptive acre-feet (77.7%) of the 448 consumptive acre-feet quantified in the augmentation plan decreed on August 14, 1980 in Case No. W-3664, Water Division No. 5, as amended in the augmentation plan decreed on September 7, 1988 in Case No. 84CW225, Water Division No. 5;- and WHEREAS, the Town now desires to supplement the water rights and other interests that are leased under the Restated Lease by leasing to the Authority the remaining undivided 22.3% interest in and to the water rights and the remaining 99.83 consumptive acre-feet (22.3%) of the 448 consumptive acre-feet that were described on Exhibit A to the Restated Lease (the "Supplemental Water Rights"); and WHEREAS, the Parties now desire to clarify the effect of the Restated Lease, as supplemented by this Supplemental Lease; NOW, THEREFORE, in consideration of the premises - and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. The Restated Lease remains in full force and effect as supplemented by this Supplemental Lease. 2. The Town hereby leases to the Authority the water and water rights, ditches and ditch rights, wells and groundwater rights, springs and spring rights, and reservoirs and storage rights described on the attached Exhibit A (the "Supplemental Water Rights"). The terms and conditions of the Restated Lease and the terms and conditions of this Supplemental Lease shall apply to the Water Rights and the Supplemental Water Rights. In addition, the Authority and the Town agree as follows: 3. The total 448 consumptive acre-feet leased to the Authority under the Restated Lease and this Supplemental Lease are adequate on an average annual basis to replace lake evaporation of 42.39 acre-feet, to provide a maximum of 19.58 acre-feet of consumptive use for non-potable irrigation within the Town and to provide water service to all development within the Town's Augmentation Plan area covered by Case Nos. W-3664 and 84CW225 up to 4,984 SFE's. ' References to "SFE's" herein are to an SFE as defined in Section 2.31 of the Rules and Regulations for Water and Sewer Service, Eagle River Water Sanitation District/Upper Eagle Regional Water Authority, Revised 01/28/04, and include the definitions in Sections 2.1, 2.13, 2.25, and the fractional SFE equivalents for residential units (1.0 plus pro-rated additions over 3,000 square feet), efficiency units (0.50 SFE), accommodation units (0.35 SFE); expansions or remodels, and commercial equivalents based on meter size that are contained in the Schedule of Fees and Charges for the Town of Avon,, Effective January 1, 2005, that, are attached. to the Rules and Regulations for Water and Sewer Service, as Appendix A. - 4. In the event the water level in Benchmark Lake is drawn down in some future year or years for maintenance or repair of the structure or facility or for any other cause, the Town may use the Water Rights and the Supplemental Water Rights that are not being used for the then current level of municipal service, lake evaporation and non-potable irrigation stated in Paragraph 3, above, to fill Benchmark Lake. IN WITNESS WHEREOF, the Parties hereto have caused this Lease to be executed in their corporate names, all by the proper officers duly authorized thereto, to be effective as of the Effective Date, but actual execution having been completed on the day of 2005. UPPER EAGLE REGIONAL WATER AUTHORITY By: ATTEST: By: Secretary TOWN OF AVON By: ATTEST: By: 2 Chairman Town Manager EXHIBIT A Water Rights Town of Avon An undivided- 22.3% interest in the following water rights (the "Supplemental Water Rights"); as changed, quantified, exchanged, and/or augmented in Case Nos. W-3664, 80CW64, 84CW225, 85CW612, 86CW200, 92CW291, 94CW22, 99CW172, OOCW083, and 01CW015, all in Water Division No. 5: 1. (a) Metcalf Ditch, priority no. 146, in the amount of 6.0 cfs, decreed on March 5,- 1901, in Case No. CA 385, Water Division No. 5. (b) Metcalf Ditch 1st enlargements, priority no. 415, in the amount of 4.07 cfs and 0.8 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. (c) Metcalf Ditch 2nd Enlargement, priority no. 528, in the amount of 9.13 cfs, decreed on July 23, 1958, in Case No. CA 1193, Water Division No. 5. (d) Nottingham & Puder Ditch, priority no. 148, in the amount of 2.5 of the 10.00 cfs, decreed on March 5, 1901, in Case No. CA 385, Water Division No. 5. (e) Nottingham & Puder Ditch 1st Enlargements, priority no. 377; in the amounts of 1.0 and 2.21 of the 4.42 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. (f) Nottingham & Puder Ditch (CAC No. 1), priority no. 377, in the amounts of 1.28 and 1.0 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. (g) Nottingham & Puder Ditch (CAC No. 2), priority no. 399, in the amount of 5.0 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. (h) Nottingham & Puder Ditch (Grace Park), priority no. 530, in the amount of 0.5 cfs, decreed on July 23, 1958, in Case No. CA 1193, Water Division No. 5. (i) Nottingham & Puder Ditch Pump & Pipeline, priority no. 527, in the amount of 4.235 of the 13.58 cfs, decreed on July 23, 1958, in Case No. CA 1193, Water Division No. 5. (j) Hurd Ditch, priority no. 147, in the amount of 2.0 cfs, decreed on March 5, 1901, in Case No. CA 385, Water Division No. 5. (k) Johnson & Howard Ditch 1st Enlargement, priority no. 350, in the amount of 0.28 cfs, decreed on May 21, 1920, in Case No. CA 734, Water Division No. 5. (1) Johnson & Howard Ditch 2"d Enlargement, priority no. 424, in the amount of 5.93 cfs, decreed on October 3, 1936, in Case No. CA 963, Water Division No. 5. 1 0\ rf (m) Johnson & Howard Ditch .P Enlargement, priority no. 535, in the amount of 2.8 cfs, decreed on July 23, 1958, in Case No. CA 1193, Water Division No. 5. 2. H.A. Nottingham and Sons, Inc. Water Treatment and Storage Project, in the amount of 3 cfs, decreed on December 31, 1971, in Case No. W-327, Water Division No.-5. 3. Nottingham Domestic Pipeline, in the 'amount of 1 cfs of the 3'.0 cfs decreed on December 31, 1973, in Case No. W-2130, Water Division No. 5. 4.. Avon Metropolitan Municipal Water System, in the amount of 5.0 cfs, decreed on December 31, 1977, in Case No.. W73666, Water Division No. 5. 5. Avon Metropolitan Municipal Water System 1' Enlargement, in the amount of 5.0 cfs, decreed on December 31, 1984, in Case No. 84CW225, Water Division No. 5. 6. The Augmentation Plan decreed on August 14, 1980, in Case No. W-3664, Water Division No. 5, insofar as' it relates to 99.83 consumptive acre-feet (21A)' of the 448.0 consumptive. acre-feet. quantified therein that are associated with the water rights described in paragraphs 1(a) through (m) above, and including the other rights and benefits of the augmentation plan decreed therein, as amended in the augmentation plan decreed on September 7, 1988, in Case No. 84CW225, Water Division No. 5. . 2 NO 4irlll'011- ~ ,p GARY L. GREER Direct Dial No.: (303) 299-8322 E-mail: Ggreer@sah.com' January 13, 2005 Glenn E. Porzak, Esq. Porzak, Browning & Bushong LLP 929 Pearl Street, Suite 300 Boulder, Colorado 80302 Re: Town of Avon: Proposal for Revised Amended and Restated Water Lease Dear Mr. Porzak: On August 16th, we met in Vail with Dennis Gelvin of the Upper Eagle Regional Water Authority, Norman Wood, Town Engineer of the Town of Avon, and Les Botham of Leonard Rice Engineers. The purpose of the meeting was to attempt to come to a common understanding of the terms and effect of the Amended and Restated Water Lease between Avon and the Authority that was tendered and accepted at the January 2004 meeting of the Authority's board. At that January meeting the Authority had accepted a lease of 348.17 acre-feet of the total of 448 acre-feet of consumptive use credits decreed for Avon in Case No. 84CW225. The lease was accepted subject to the Authority's understanding (based on the Williamsen report) that the 348.17 acre-feet in the lease was sufficient water to serve 3,975 single-family equivalents (SFE's), absent a further dedication of water by Avon! Avon was afforded the opportunity to study the likely number of SFE's at build-out and come back with a proposal for the amount of water that it was willing to dedicate to the Amended and Restated Water Lease to provide water to meet the demand at build-out. Avon has been conducting that study. . References to "SFE" herein are to an SFE as defined in Section 2.30 of the Rules and Regulations for Water and Sewer Service, Eagle River Water Sanitation District/Upper Eagle Regional Water Authority, Revised 01/28/04 and include the definitions in Sections 2.1, 2.13, 2.24, and the fractional SFE equivalents for residential units (1.0 plus pro-rated additions over 3,000 square feet), efficiency units (0.50 SFE), accommodation units (0.35 SFE), expansions or remodels, and commercial equivalents based on meter size that are contained in the Schedule of Fees and Charges for the Town of Avon, Effective January 1, 2002, that are attached to the Rules and Regulations for Water and Sewer Service, as Appendix A. Glenn E. Porzak, Esq. January, 13, 2005 Page 2 Since January of 2004, in discussions between Avon and the Authority it has been pointed out that the assumptions about the area of surface water contributing to evaporative loss from Benchmark Lake and the contingent surface acreage from other ponds -in Avon's water decrees and in the reports entitled "Analysis of Water Rights, Future Water Use, and Related Water Rights Issues", principally done by. Tom Williamsen, are too high. Instead of 19.4 acres, the area is 15.7 acres and instead of 52.38 acre-feet of annual evaporative loss there will be only 42.39 acre-feet of evaporative loss. Avon has stated and agreed that it will construct no more lakes or ponds that would contribute to evaporative loss unless it provides additional water rights for that purpose. In addition, Avon has agreed to cap the amount of water that will be consumed from Benchmark Lake for irrigation at 19.58 acre-feet, which is also somewhat less than the assumptions that had been used in the Williamsen report. At the August 16th meeting we discussed other factors, such as the percentage of system loss that goes into calculations of water use and consumption and the Authority's desire for a cushion or buffer'of dedicated water over and above amounts currently calculated to be required for water service to any of its service areas. We also discussed Avon's need to provide for the maintenance of Benchmark Lake as a community amenity from available water rights. Following that discussion you suggested that Avon once again study its projected water usage at build-out and come back with 'a proposal to add water to the Lease that would provide for domestic and municipal water use, lake maintenance, irrigation of open space with non- potable water from the lake, and a cushion or buffer. On December 16th we met again to discuss Avon's progress in developing a proposal. Avon has now'completed additional studies and done further analysis of its expected water use at various stages of likely build-out. Its conclusions are shown in the following Table 1. Table 1 shows the adequacy of the Avon's water rights to serve various numbers of SFE's starting with the number existing on July 31, 2004. It also shows the surplus or cushion at each of the various levels. The following assumptions were used to develop Table 1: 1) Nottingham Lake Operation & Maintenance (Refilling): Les Botham, the Town's Water Engineer has recommended that at least 40 AF annually be available for refilling the lake in the event it is drawn down for maintenance or some other purpose. The 40 AF would allow the lake to be refilled completely over a- three- year period under normal water right related conditions. Water Rights not required for domestic and municipal service, non-potable irrigation or lake evaporation at any given time would be available to the Town of Avon for refilling Nottingham Lake on an emergency basis. 2) System Loss: Avon has used a 7% system loss rate in the calculations. We, believe this is slightly high based on the percentages of the Avon system in the Glenn E. Porzak, Esq. January, 13, 2005 Page 3 High and Low Pressure Zones in the overall system. At the 7% rate, consumption is 0.069435 AF per SFE. 3) Town of Avon available water rights in an average year is based on: Total Water Rights 448.00 AF Lake Evaporation 42.39 AF Non-Potable Irrigation 19.58 AF Available for Domestic and Municipal Service 386.03 AF 4) Potential development range - 3,114 SFE's to 5,167 SFE's (a) Existing development - July 31, 2004 3,114 SFE's (b) Maximum development under current zoning without redevelopment 4,139 SFE's (c) Maximum allowable development under current zonings with redevelopment up to current zone levels 4,793 SFE's (d) Maximum development assuming a 40 AF minimum reserve for lake refilling after drainage for maintenance 4,984 SFE's (e) Maximum development including full redevelopment and potential rezoning opportunities 5,167 SFE's TABLE 1 Demand Analysis for Various Projected Development Scenarios 1 2 3 4 5 Supply per Projected Water Water Demand Contingency Development Required Available (3/2) (3-2) SFE's Ac-Ft Ac-Ft % Ac-Ft 3114 216.22 386.03 179% 169.81 4139 287.39 386.03 134% 98.64 4793 332.80 386.03 116% 53.23 4984 346.03 386.03 112% 40.00 5167 358.77 386.03 108% 27.26 t Includes Avon Station to extent stated in the Augmentation Plan. Additional development at Avon Station would require additional water from the developer. Glenn E. Porzak, Esq. January, 13, 2005 Page 4 Column 1 of Table 1 shows a progression of increasing numbers of SFE's from the current 3,114 to a maximum at build-out of 5,167. Column 2 shows the amount of consumptive use required at each level of build-out. Column 3 shows the amount of consumptive use available to meet the demand after backing out water for annual lake evaporation and non- potable irrigation.,, Column 4 indicates that the supply (Column 3) is greater than the demand (Column 2) and expresses the excess as a percentage of the requirement. Thus at 3,114 SFE's, the water available (386.03 AF) is 179% of the water required (216.22 AF) so there is a 79% cushion or buffer. At 4,984 SFE's the percentage is 112% and the cushion is 12%; at 5,167 SFE's the percentage is 108% -and the cushion is, 8%: Column 5 is labeled "contingency". It is simply the amount of. Column 3 less Column 2, that is, the cushion of water available over and above,the amount required at the various levels of build-out. Thus at 3,114 SFE's the amount of the cushion is 169.81 AF,' at 4,984 SFE's the cushion is 40 AF and at 5,167 SFE's; it is 27.26 AF. We have had considerable discussion with you about the Authority's desire for a substantial "cushion" of surplus supply over projected demand to cover various contingencies. You have indicated that the Authority-believes it should require its constituent districts to commit 20% more water than their expected demand'as:a cushion. Table 1 shows that at the two highest levels (4,984 SFE's and 5,167 SFE's) there would be cushions of 12% and 8%, respectively. We believe the smaller cushions are justified in Avon's case. Avon's water rights are markedly superior in seniority to the water rights packages leased to the Authority by most of the other districts and water users. This is illustrated by the November 16, 2004 study done for the Authority on the projected possible effects of a Colorado River Compact call. That study notes that the Shoshone power plant call in Glenwood Canyon is the controlling call on the upper Colorado River and Eagle River. The November 16 study groups and evaluates water rights above Shoshone according to, whether they are senior or junior to the priority date for the Shoshone call, January 7,'1902. The study shows that of the water rights leased by Avon to the Authority, 268 AF, or 77%, are senior to the Shoshone call and 80 AF, or 23%, are junior to the Shoshone call. In contrast, only 33% of the water rights leased by the other districts to the Authority are senior to the Shoshone call and 67% are junior. Eagle Vail, for example, has leased no rights that are senior to the Shoshone call and only 14 % of Edwards' leased water is senior to Shoshone. Avon's rights are more reliable in time of short supply. For this reason Avon proposes that the Authority ask Avon for a smaller "cushion" than other districts. Avon proposes to increase the amount leased (348.17 AF) to include the entire 448 AF of consumptive use credits decreed in Case 84CW225 under the following conditions. A. Avon proposes to lease the entire currently decreed 448 AF of consumptive use water rights to the Authority; Glenn E. Porzak, Esq. January; 13, 2005 Page 5 B. The-Authority will agree that the 448 AF of consumptive use water rights is adequate to provide water service to all development within the Town's Augmentation Plan Area up to 5,167 SFE's. (It is understood and agreed that the Town retains exclusive authority to approve and allocate water use within the Town's augmentation area up to the stated number of SFE's.); C. The Authority will allow the Town to use any of the water rights not required for the then current level of municipal service and lake evaporation and non-potable irrigation (as noted in Column 5 in Table 1) for filling or refilling Benchmark Lake from time to time, as needed; D. Avon must continue to control the operation of Benchmark Lake and manage the non-potable irrigation (within the indicated cap of 19.58 AF). This proposal was approved by the Avon Town Council on January 11`h We would request that it be"presented to the Authority board of directors at its meeting on January 27 h or thereafter as board's agenda may permit. Sincerely, Gary L. Greer GLG/dmc Enclosure cc: Mr. Norman Wood Mr. Les Botham t)