Castle Pines North Approval Letter

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Castle Pines North Metropolitan District Agenda Item 29c May 9,2014(Updated May 23,2014) Page 5 of 7 FEDERAL AND STATE REQUIRED MITIGATION. THESE COST TOTAL $145.5 MILLION($7,063/ACRE- FOOT).THE REALLOCATION PARTICIPANTS ARE RESPONSIBLE FOR A PRO-RATA SHARE BASED ON THEIR STORAGE ALLOTMENT. SEE TABLE 2 FOR A SUMMARY OF THE REALLOCATION COST. TABLE 2: REALLOCATION COST SUMMARY Task Cost Cost of Storage $16,300,000 Federal Required Mitigation $107,100,000 State Required Mitigation $8,900,000 Subtotal $132,000,000 Contingency (10%) $13,200,000 Total $145,500,000 Borrower's Participation: The District is participating in the Reallocation with a goal of increasing the permanence and reliability of its water supply. Currently,the District primarily relies on non- tributary groundwater, a non-renewable water source. There is a general concern in the south metro area about the life expectancy of these aquifers. The Chatfield water will be utilized by the District through an exchange on East Plum Creek authorized in water court Case No. 04CW308 and on the lower South Platte River as authorized in water court Case No. 09CW279. No additional water right acquisition or infrastructure improvements will be needed for the District to utilize storage in Chatfield. Of the 20,600 AF of storage to be reallocated, the District will directly receive 941.5 AF and, through the South Metro Water Supply Authority, indirectly receive 64.3 AF, for a total storage space of 1005.8 AF. This represents 4.88% of the total reallocation. Therefore the District's Project cost is approximately $7,100,000 ($145,500,000 x 4.88%). The Project is expected to develop an average yield of 415 AF per year for the District from junior water rights. Successful completion of the Project would result in the District securing renewable water rights that on average would supply 32%of its average annual water demand and 26% of its projected maximum annual water demand. SCHEDULE:THE CORPS' RECORD OF DECISION(ROD) IS EXPECTED IN 2014.UPON THE SIGNED ROD, THE CORPS WILL COMPLETE NEGOTIATIONS WITH DNR AND ENTER INTO A WATER STORAGE AGREEMENT. DNR WILL ENTER INTO THIRD PARTY SUB-AGREEMENTS WITH THE REALLOCATION PARTICIPANTS. PROJECT ACTIVITIES WILL BEGIN WHEN ALL NECESSARY AGREEMENTS HAVE BEEN EXECUTED(ESTIMATED FALL 2014). REALLOCATION PARTICIPANTS EXPECT TO PAY IN FULL THE COST OF STORAGE AS WELL AS BEGIN FINAL ENGINEERING UPON PROJECT START. THE RECREATIONAL FACILITY MODIFICATIONS AND ON-SITE MITIGATIONS ARE EXPECTED TO TAKE 5 YEARS. OFF-SITE MITIGATIONS AND MITIGATION MONITORING ARE EXPECTED TO LAST 13 YEARS OR MORE.