ALP 13

Mr. Tim Feehan
September 4, 2009
Page 3
Upon completion of this phase, Brown and Caldwell will deliver a technical memorandum
summarizing the results of the demand analysis. Comments on the technical memorandum will
be incorporated into the final draft of the report.
Financing Options Analysis
Financing is usually a crucial factor in acquisition of a new water supply for a municipality or
similar water supplier. After identification of potential buyers, Brown and Caldwell proposes to
work with the State to develop possible sources of financing to reduce this potential obstacle.
n l Brown and Caldwell will work with the State to identify the available options for financing water
ft" , projects in this area and putting purchased water to use quickly. This will be accomplished by
working with CWCB through its loan program and other possible funding sources to expedite
water sales.
Upon completion of this phase, Brown and Caldwell will deliver a technical memorandum
summarizing the results of the financial options analysis. Comments to the technical
memorandum will be incorporated into the final draft of the report.
Marketing Analysis
Brown and Caldwell will develop alternatives and determine how to assemble the findings from
the cost analysis, demand survey and financing options analysis to best meet the State's
objectives. Initially this process will focus on the La Plata - Archuleta Water District and La Plata
West Water Authority who have previously expressed interest in purchasing the State's ALP
project water.
Brown and Caldwell will then extend this effort to determine how the State could expand its
market share in the reasonably near future and sell all or a large component of its allocation
while preserving whatever component it wishes to preserve for Compact compliance. This
marketing study will also focus on the best strategies for complying with the State's objectives
with respect to the Association, e.g., giving up its seat completely or some other stated
objective.
The marketing analysis will determine how the State can increase its market share and overcome
some of the problems created by the State not entering into a repayment contract prior to the
initiation of construction of ALP and now having to pay IDC costs.
During this phase, a trip to the Durango area is planned to interview some of the best "sales
prospects" in order to order to better determine the final potential for selling the State's
allocation.
Upon completion of this phase, Brown and Caldwell will deliver a technical memorandum
summarizing results of marketing analysis. Comments to the technical memorandum will be
incorporated into the final draft of the report.
Final Report
The final report will be a compendium of the technical memos generated for each of the
previous phases. Comments provided to Brown and Caldwell by the State will be incorporated
into the final report. Ten (10) copies of the final report will be provided to the State along with
a CD of all report documents and data used to complete the project.
M: \FY2009\ALP Water Marketing Study\ALP letter proposal 09- 04- 09.doc