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Feasibility Study for the Plaza Project — Phase 2: McDonald Ditch Implementation Project Executive Summary The Plaza Project - Phase 2: McDonald Ditch Implementation Project (Phase 2) is the first phase of implementation of the Plaza Plan. The Plaza Plan, finalized in August 2011, was completed through the Plaza Project — Phase 1: Plaza Planning Project (Phase 1). Phase i was funded with a $40,000 grant from the Rio Grande Basin WSRA Account. Phase i was a 5 -month collaborative scoping and feasibility study of potential biological and structural approaches to rehabilitate the streambanks, diversion and headgate structures, and a wetland within the approximately 2.8 mile reach of the Rio Grande near the Sevenmile Plaza. Alternatives for rehabilitation of project elements included different diversion types, incorporation of micro - hydropower generation and automated headgates, and multiple streambank stabilization, riparian rehabilitation, and wetland reclamation techniques. The "Plaza Stakeholders" a diverse group of thirty -four (34) individuals, analyzed the costs and benefits of each alternative to select the desired alternative for each project element. The top three priorities for implementation, Priority 1 — McDonald Ditch Diversion and Headgate Replacement, Priority 2 — Rio Grande County Wetland Reclamation, and Priority 3 — Streambank Stabilization near the McDonald Ditch, are included in Phase 2. Phase 2 integrates the rehabilitation of the McDonald Ditch (McDD) diversion with the multiple objectives of the 2001 Study, the anticipated future rehabilitation of the neighboring Silva, Atencio 2, and Prairie diversions, and the stabilization and restoration of the surrounding riparian areas. Preliminary designs for the McDD headgate and diversion, streambanks, and wetland were developed by the NRCS in Phase 1. In Phase 2, Project engineers will finalize the design for each of the project elements, the McDD diversion and headgate will be replaced, channel and streambank stabilization will be implemented, the wetland will be reclaimed, and outreach and education will be conducted. The objectives of Phase 2 are to: • Improve diversion efficiency and reduce maintenance by replacing the aging McDD headgate, installing a solar- powered automated water gate, and replacing the McDD diversion structure with the alternative chosen by the Plaza Stakeholders during Phase 1; • Enhance water quality by reducing erosion and sediment input; • Improve riparian and wetland condition by reclaiming a 2 -acre wetland and stabilizing up to 2,000 linear feet of streambanks in the project area; • Increase the capacity of the Rio Grande to transport sediment; • Improve aquatic and wildlife habitat; • Encourage local recreation by including fish and boat passage in the new diversion structure; • Promote public involvement in water improvement activities through public outreach and education. The estimated cost of Phase 2 is $9o8,000. The McDD partnered with the Colorado Rio Grande Restoration Foundation (Foundation), the fiscal agent for the Rio Grande Headwaters Restoration Project ( RGHRP), to organize and raise funds for Phase 2. The McDD secured $150,000 through the NRCS Environmental Quality Incentives Program (EQIP). The RGHRP secured $295,000.00 from the Colorado Water Conservation Board (CWCB) Water Supply Reserve Account (WSRA), $50,000 from the Colorado Partnership Program (CPP), and $200,000 from the Cooperative Conservation Partnership Initiative (CCPI) Program. Additional commitments include $1o,000 from Rio Grande County and $133,000 from in -kind services. The McDD will provide $7o,000, which they hope to obtain through the CWCB loan program.