Old Dillon Reservoir price tag reaches $7.5 million

SUMMIT COUNTY - Anticipating U.S. Forest Service approval of a proposal to enlarge Old Dillon Reservoir, the Board of County Commissioners discussed paying for the multi-million dollar project.

The county is partnering with Dillon and Silverthorne to create a valuable new water supply at a cost now estimated to be about $30,000 per acre foot. At that price, the enlargement would cost about $7.5 million, according to county manager Gary Martinez.

Commissioner Tom Long said the expense to secure future water supplies is crucial and the best investment the county can make for its future.

"It's a tough choice. You may have to eat peanut butter and macaroni and cheese for a while," Long said, touting the long-term benefits of the new water supplies.

The price tag is likely to change based on inflation of construction costs and the reservoir size that is permitted by the Forest Service, Martinez said.

"This is real storage with bulletproof water rights. It's platinum," Martinez said, touting the reservoir's location above Denver Water's Dillon Reservoir. The Old Dillon Reservoir was built in the 1930s between I-70 and Dillon Dam Road.

The intergovernmental agreement discussed during this week's work session outlines how the county, Silverthorne and Dillon will divide up preliminary costs based on each government's share in the water.

According to the agreement, the county will pay $73,826 (69.32 percent). Dillon will pay $21,300 (20 percent). Silverthorne will pay $11,374 (10.68 percent). The money will go toward design and permitting costs.

The agreement also stipulates the parties will allocate additional funds totaling $500,000 to fund the completion of phase 2 of the project during 2008. based on the same percentages:

• The county's share would be $346,600;

• Dillon's share would be $100,000; and

• Silverthorne's share would be $53,400,

The county isn't exactly sure where the money will come from.

"We need to get more clear how we can afford it and finance it," Martinez said.

Long said the government can find the funds for the important project.

"We have dedicated revenue streams, as long as we don't piss it away on a bike path," Long said. "This is a lot more valuable to your kids. We can always get a bike path."

The Foreset Service is currently in doing an environmental assessment for the enlargement. Acting District Ranger Scott Ludwig said the agency is on schedule, with a decision due in June.

"Then we'll know how big we can go," Martinez said. After that, the three governments will take another look at the costs and get into the nitty-gritty of the financing.



Bob Berwyn can be reached at (970) 331-5996, or at bberwyn@summitdaily.com.