C150172 Feasibility Study

• Contract/PO #: C150172
• Contractor Name: Union Ditch Company, The
• Contract Type: Loan
• Water District: 2
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

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Union has already solicited work with a construction firm for purposes of developing a cost
estimate for excavation and grading of the Mercure #1 recharge site. These costs are reflected
in Table 2 and are used to estimate expected excavation costs for the additional recharge sites.
The ultimate storage capacity of each recharge site will depend on the specific conditions and
overall effectiveness of the site. Initially, Union will most likely develop recharge structures with
a smaller capacity than the capacity noted in Table 2. However, in order to develop the probable
cost of the recharge project, the excavation costs were estimated based on knowledge of the
site and the amount of surface area that can be dedicated to a recharge pond. Capacity values
reflected in the probable cost estimate have not specifically been determined at each recharge
site.

Union Ditch Company has estimated between $245,100 and $325,725 for near term (calendar
year 2004 and 2005) excavation, flow measurement structures (flumes or meters), new
headgate structures, and monitoring and reporting measurement equipment (SCADA) 1. As with
other recharge structure excavations, much is learned about the benefits and operational
characteristics of a particular structure through the actual real-time use of that structure.
Operational data, to be evaluated by the Company and Aqua Engineering, will be used to
determine costs and benefits associated with potential enlargement of a site or potential
excavation of a new site or sites. Four sites are identified within this feasibility study as priority
sites based on computer model runs and stream depletion factors. A project of this type, quite
different many construction projects, requires some flexibility to respond to experience gained
through initial operations. It is anticipated that funds will be drawn on an as needed basis and
based on data to be collected and reported before monies are expended.

Implementation Schedule

Union and the probable construction firm have developed the rough dimensions of the Mercure
#1 site. In addition, Union has begun a more detailed exploration of the soil conditions at the
site. Union plans to begin and complete the construction on this site during the spring of 2004.
Throughout the remainder of 2004, Union will operate, monitor, and evaluate the Mercure #1 for
purposes of deciding which site to develop next (or possibly enlarge the Mercure #1 site). In
order to allow time for monitoring and evaluation, Union does not expect to begin construction of
addition recharge sites until the fall of 2004 and spring of 2005.

Implementation Considerations

Entities that are, or may be, involved in the design, construction, and financing of the project
include:

Union Ditch Company: financing and project management
Aqua Engineering, Inc: design and construction observation
Rocky Mountain Construction: excavation and construction
Colorado Water Conservation Board (CWCB): financing

The Union Ditch Company will be the lead for the financing, design, and construction of the
project and will be the entity entering into contracts and agreements with the various entities for
the services provided by each.

1 SCADA - Supervisory Control and Data Acquisition

Union Ditch Company
Recharge Project Feasibility Study
March 2004

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