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Water Supply Reserve Account -Grant Application Form <br />Form Revised May 2007 <br />project does promote the protection, conservation and use of water in multiple river basins including the <br />Dolores and San Juan river basins. This will also promote the socio-economic stability of the region <br />through better management of scarce water resources and the abilrry to promote better agriculture practices. <br />It will promote collaboration and cooperation among local water users by virtue of allowing rehabilitation <br />of existing water infrastructure and potentially introducing more flexible points of delivery and enhanced <br />storage. It has the potential of introducing increased water efficiency to end users by improving the delivery <br />and storage of project wateNS. MVIC is consideNing the expendituNe of capital to restore storage capacity to <br />the system and improve delivery canals. There nzay also be opportunities to bring more land under <br />irrigation depending on the water rights decree and the service areas envisioned in incorporation. There <br />may also be institutional stNUCtures that Neduce risk, reduce O&M costs, and increase certainty to the water <br />users and beneficiaries of the systems. <br />4. Please provide an overview of the water project or activity to be funded including -type of activity, <br />statement of what the activity is intended to accomplish, the need for the activity, the problems and <br />opportunities to be addressed, expectations of the participants, why the activity is important, the service area <br />or geographic location, and any relevant issues etc. Please include any relevant TABOR issues that may <br />affect the Contracting Entity. Please refer to Part 2 of Criteria and Guidance document for additional detail <br />on information to include. <br />The pNOposed project will be a technical and legal review of the potential foN combining the operations of the <br />two irrigation districts. It would be done in phases, first doing a water rights and planning review as <br />outlined in Task I, which is solely what this finding request is for. This portion of the study would analyze <br />and outline the benfits and dNawbacks associated with the two irrigation districts meNging soley based on a <br />perspective of eater rights and eater planning. It ??ould provide a platform for shareholders in both <br />irrigation companies to evaluate if the concept of meNger waNrants additional study and effoNt or it should be <br />abandoned. <br />The next step if warranted, would be a condition assessment of the inf?astNUCtz?re associated with the Summit <br />Irrigation District. This would be done through a field assessment and office review. Geotechnical <br />information would be gathered through exploratory drilling of the dam at Summit Reservoir. Lab testing of <br />the existing dam mateNial would be done to categorize the engineering pNOperties and determine how the <br />dam compares to current safety regulations. A bathymetric survey of the reservoir area would also be done <br />to recalculate the area-capacity data for the reservoir. This would be compared to the hisoric data for <br />estimating the volume of silt that has accumz?lated in the reservoir bottom. The survey data would also cover <br />the dam and saddle dike areas. This data would be used foN puNposes of doing quantity estiamates on <br />rehabilitation alternates and construction cost estimates. <br />The results would determine the capital expenditures that could be expected for acquring and rehabilitating <br />the project, the benefits of improved delivery, a verification of the service area that is currently served and <br />the potential for expansion of the service area. The results of this first phase would be used to make a Go- <br />NO GO decision on the pNOject. If the costs and capital expendituNes are in alignment with the risk being <br />assumed, then the legal rainifrcations would next be explored. <br />The third task would be a legal review of the districts. The current articles of incorporation and bylaws <br />woz?ld be examined. A Nisk assessment would be done to deteNtnine what known potential liabilities need to <br />be considered. This would also include some broad brush strategic planning that ??ould postiion the <br />5