PROJ00488 App Letter

• Contract/PO #: C153774
• Contractor Name: Pinon Mesa Ranches
• Contract Type: Loan
• Water District: 30
• County: La Plata
• Bill Number: SB 97-008
• Loan Projects - Doc Type: Approval Letter

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Mr. Charles Palmer, President
January 16, 1997
Page 4

WWE's areas of primary responsibility in the feasibility study will be the following:

1. study objective,

2. water demands,

3. hydrology and water rights,

4. discussion of water quality criteria and assumptions for intended uses,

5. site inspection at point of diversion (weather permitting),

6. formulation and evaluation of alternatives,

7. financial analysis, and

8. preparation of feasibility study report.

The level of detail in the feasibility study will be limited by the time and funds available, but is
intended to be sufficient to determine the technical and financial feasibility of the project.

At a minimum, the alternatives evaluated will include the do-nothing alternative, the proposed
project with a maximum diversion and delivery capacity of 0.5 cfs, and the alternative of waiting
until potable water service is provided to the Pinion Mesa Ranches service area by the Valleeito
Water Company project. Evaluation of the proposed project will include the possibility that
potable domestic water service would be extended to the service area during the lifetime of the
project and will address the question of whether dual raw water and treated water systems within
the service area would be economically viable.

ESTIMATED COST FOR FEASIBILITY STuJ>Y

WWE will perform the above-described scope of work at normal hourly rates in accordance with
the attached rate schedule, for an estimated total cost of $5,000. This estimate includes the
preparation of the draft feasibility study report alld submittal of one copy each to the project
sponsor and CWCB staff on January 24, 1997, revisions of the draft report as requested on
January 27, 1997, delivery of one copy of the draft report to CWCB staff on January 28, 1997
and attendance at the CWCB meeting on January 29, 1997 to answer questions of the Board
members regarding the feasibility study.

WWE will not bill for time or expenses in excess of a total of $5,000 for work performed prior to
January 30, 1997. WWE will be available to perform any additional work that may be
determined by the CWCB to be necessary to complete the feasibility study_ Such work would be
performed on an hourly basis.