ALP 13

1697 Cole Boulevard
Suite 200
Golden, Colorado 80401 1i Q tr S 3
Tel: [phone] S � ,� � J T i ^ i � � �`►
Fax: [phone]
www.brownandcaldwell.com
September 17, 2009
Mr. Tim Feehan
Colorado Water Conservation Board
Water Supply Planning and Finance Section
1580 Logan Street, Room 600
Denver, CO 80203
Subject: Scope of Work for Phase 1 Animas — La Plata Project Water Supply and
Demand Study, Durango, Colorado
Dear Mr. Feehan:
In accordance with Brown and Caldwell's Colorado As- Needed Architect /Engineer /Consultant
Professional Services Contract, we are pleased to present the Colorado Water Conservation
Board (CWCB) with this letter proposal for the Animas — La Plata (ALP) Project Water Supply
and Demand Study.
BACKGROUND
The State of Colorado (State) currently has an allocation of 10,460 acre -feet (AF) of ALP
Project water in southwest Colorado. The State would like to investigate options for marketing
this water to local water providers in the area. This includes identifying the quantity of water
that water providers in the vicinity would be interested in purchasing, how much these
providers would be willing to purchase this water for, and when these parties would anticipate
needing this water. This information can also be used to assist the State in deciding how much
water from the State's ALP allocation could be used for Colorado River Compact compliance
purposes.
PROPOSED SCOPE OF WORK
To assist the State with this water supply and demand study, Brown and Caldwell proposes to
complete the following tasks for the first phase of work described below.
Cost Analysis
Brown and Caldwell will conduct a cost analysis and investigation to determine the price, or
price range, at which the State can successfully market water to local water providers. This task
will include:
• Updating and verifying the capital costs, including sunk costs and interest during
construction (IDC), which must be repaid;
• Determining the operations, maintenance, and replacement (O, M, & R) costs which must
be assumed. An analysis will be made of the costs to the State and to the various entities for
assuming these costs through the ALP Operation and Maintenance Association
(Association). Analysis will be completed on how best to work with the Association; and
E it v i r o it m e n t a l E n A i it e e r s & C o n s u l' r a n t s
M: \FY2009\ALP Water Marketing Study\Phase 1 ALP letter proposal 09_17- 09.doc