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PreliminaryApproach <br />4. An Intergovernmental Agreement among the water owners and intended water users and other <br />stakeholders - This agreement will allow the parties to actually do a deal for transferring agricultural water <br />to municipalities which will preserve sustainable agriculture. <br />5. A handbook for distribution which will provide guidance, based on the investigation, for the most <br />practical transfer programs for a wide variety of engineering, legal and institutional situations. This <br />handbook should also provide guidance for financial alternatives for funding implementation (including <br />construction) of transfer programs. <br />6. A summary report to the C~X1CB - This report will provide specific information and guidance to other <br />municipalities and ditch companies throughout Colorado on how to actually do practical and successful <br />water transfer deals between municipalities and ditch companies, which will actually provide for <br />sustainable agriculture. This report benefits the grant applicants in that it meets the goals of the C~1CB <br />and strengthens the grant application. <br />7. A final engineering report documenting the study and engineering issues associated with various <br />alternatives for transferring water. This report is the backup documentation for the above deliverables. <br />8. A final report of legal issues associated with various alternatives for transferring water. This report is the <br />backup documentation for the above deliverables. <br />5.0 ESTIMATED COSTS AND EXPENSES <br />The total project cost, including expenses, is estimated to be between $250,000 and ~500,000 depending on <br />the applicants. The grant program will cover 90% of these costs. The grant applicants will be responsible for <br />10% of the costs. It is anticipated that these costs will be apportioned equally among the grant applicants. <br />6.0 CONCLUSIQN~ AND BENEFITS <br />This study will provide the participants with valuable information and guidance on how to transfer water for <br />municipal and other uses while maintaining sustainable irrigated agriculture. This study will culminate in an <br />IGA that will set the course for putting the components of the study into action. The results of the study <br />and the IGA can be used by other water users in Colorado as a template or as guidance to accomplish the <br />objective of effective sharing of water between agriculture and municipalities. This study will also provide <br />valuable information regarding engineering, legal, and institutional hurdles that would need to overcome for <br />various alternatives for transferring agricultural water to other uses. <br />Other benefits associated with specific project deliverables and processes are described below: <br />• By collaborating during the course of this study, the participants will have a voice and will help <br />determine how future development should occur in the study area. <br />~ Conducting a ditchwide historic use analysis will provide a uniform basis for evaluating the <br />consumptive use of water owner's shares. Both water owner and intended water user will have <br />certainty in the volumes of water being transferred at the outset of the transaction. The water supply <br />of shareholders who would like to remain in agriculture will be protected. <br />• The bulk of the costs for evaluating historic consumptive use will be covered by the grant. <br />~ Guidance will be provided on how to implement water and land development in an economically <br />sustainable way. <br />• Project participants will be given specific guidance on how to implement alternatives to "buy and dry." <br />There has been much talk of these alternatives, but little implementation has occurred in Colorado. <br />~'~1 ~ ~t ' <br />4 <br />M;1FY20081CWC~1S Platte and Arkansas Alternative Agricuiture ~ranflProposallGeneralized Approach fior Letter of Intent 3-25-O~.doc <br />