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Ridgway Reservoir Micro-Hydro Project Loan Feasibility <br />Page 15 of 42 <br />BUDGET NARRATIVE <br />The costs estimated above are based on a similar project for which HDR recently completed the <br />design. No land or right-of-way acquisition costs are anticipated. The payment to Reclamation <br />for the Lease of Power Privilege will be $0.003 per kilowatt-hour. The total estimate includes a <br />contingency, plus engineering and construction management. The following is some additional <br />narrative regarding various cost items. <br />Salar,y and Wages <br />The key program manager will be Tri-County Water General Manager Mike Berry, who has <br />been the District's General Manager for the last 16 years. Tri-County Water's management team <br />has over 88 years of combined experience working for the District. Mike Berry has his B.S. in <br />civil engineering and is a registered Professional Engineer in the State of Colorado. Prior to <br />working for Tri-County Water, he had 12 years of experience with the Bureau planning, <br />designing, and constructing large scale irrigation systems. Assistant Managers for the District <br />have over 72 years of combined experience in all aspects of administrative, financial, and <br />construction management. Tri-County Water continues to get excellent reports from <br />Reclamation for efforts to operate and maintain the Project. <br />Tri-County Water is well-suited to develop the hydroelectric resources at Ridgway Dam. In <br />addition to operating and maintaining the Dallas Creek Project, Tri-County Water has extensive <br />experience financing, constructing, and managing complex projects. Tri-County Water recently <br />finished the $3.6 million LaSalle Road Pipeline Replacement Project to construct 7.5 miles of 20 <br />inch PVC transmission water line. Tri-County Water also staffs a construction crew that builds <br />and replaces water line in the distribution system on a daily basis. <br />In completing the LaSalle Road Project, Tri-County Water collaborated and coordinated with <br />several agencies including: the U.S. Bureau of Reclamation, Colorado Department of Public <br />Health and Environment, Army Corps of Engineers, Colorado Department of Transportation, <br />Union Pacific Railroad, Montrose County, Project 7 Water Authority, Uncompahgre Valley <br />Water Users Association, and private landowners (for easements). Management and execution <br />of the LaSalle Road Project demonstrates that Tri-County Water has the organizational, <br />technical, financial, and collaborative ability to develop and manage hydropower at Ridgway <br />Dam. <br />ui ment <br />The single largest equipment cost item will be for the turbine and generator, items that will have <br />the longest lead time required for ordering. The project will also require a conventional outdoor <br />single radial feed substation with a high voltage circuit breaker, generator step-up transformer, <br />grounding, and fencing. <br />Additional Contractual Costs <br />It has been assumed that Tri-County Water will engage consultants to assist in development of <br />the project, and many costs will be contractual as opposed to requiring salary expenditures for <br />Tri-County Water employees. <br />