South Platte - FarmersRes&IrrCo SP FRICO_Ltrs

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Preliminary Approach 4. An Intergovernmental Agreement among the water owners and intended water users and other stakeholders -This agreement will allow the parties to actually do a deal for transferring agricultural water to municipalities which will preserve sustainable agriculture. 5. A handbook for distribution which will provide guidance, based on the investigation, for the most practical transfer programs for a wide variety of engineering, legal and institutional situations. This handbook should also provide guidance for financial alternatives for funding implementation (including construction) of transfer programs. 6. A summary report to the CWCB -This report will provide specific information and guidance to other municipalities and ditch companies throughout Colorado on how to actually do practical and successful water transfer deals between municipalities and ditch companies, which will actually provide for sustainable agriculture. This report benefits the grant applicants in that it meets the goals of the CWCB and strengthens the grant application. 7. A final engineering report documenting the study and engineering issues associated with various alternatives for transferring water. This report is the backup documentation for the above deliverables. 8. A final report of legal issues associated with various alternatives for transferring water. This report is the backup documentation for the above deliverables. 5.0 ESTIMATED CASTS AND EXPENSES The total project cost, including expenses, is estimated to be between $250,000 and $500,000 depending on the applicants. The grant program will cover 90% of these costs. The grant applicants will be responsible for 10% of the costs. It is anticipated that these costs will be apportioned equally among the grant applicants. ~.0 C~NCLIJSI~NS AND BENEFITS This study will provide the participants with valuable information and guidance on how to transfer water for municipal and other uses while maintaining sustainable irrigated agriculture. This study will culminate in an IGA that will set the course for putting the components of the study into action. The results of the study and the IGA can be used by other water users in Colorado as a template or as guidance to accomplish the objective of effective sharing of water between agriculture and municipalities. This study will also provide valuable information regarding engineering, legal, and institutional hurdles that would need to overcome for various alternatives for transferring agricultural water to other uses. Other benefits associated with specific project deliverables and processes are described below: • By collaborating during the course of this study, the participants will have a voice and will help determine how future development should occur in the study area. + Conducting a ditchwide historic use analysis will provide a uniform basis for evaluating the consumptive use of water owner's shares. Both water owner and intended water user will have certainty in the volumes of water being transferred at the outset of the transaction. The water supply of shareholders who would like to remain in agriculture will be protected. • The bulk of the costs for evaluating historic consumptive use will be covered by the grant. • Guidance will be provided on how to implement water and land development in an economically sustainable way. • Project participants will be given specific guidance on how to implement alternatives to "buy and dry." There has been much talk of these alternatives, but little implementation has occurred in Colorado. ~ ~ ~ 4 M:\FY2008\CWCB\S Platte and Arkansas Alternative Agriculture Grant\Proposal\Generalized Approach for Letter of Intent 3-25-08.doc