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0 i <br /> HL ERF ANO COI�'TV WATER COS SERV VN(,N DISTRICT <br /> PO Box 1213 La Veta,CO 81033 (719)742-3597 <br /> May 13, 2013 <br /> Kirk Russell, P.E. <br /> Chief,Finance and Administration Section <br /> Colorado Water Conservation Board <br /> 1580 Logan Street, Ste 600 <br /> Denver, CO 80203 <br /> Re: Application for Feasibility Study Small Grant—HCWCD Huerfano River Regional <br /> Augmentation Project <br /> Dear Mr. Russell, <br /> This letter constitutes the Huerfano County Water Conservancy District's application for a <br /> $5,000 grant from the Feasibility Study Small Grant Fund under CWCB Policy Number 17. <br /> The purpose of the grant is to provide less than 50%of the funding of an engineering and <br /> financial feasibility study for the District's Huerfano River Regional Augmentation <br /> Project. The project involves acquisition of senior water rights(and associated lands)to <br /> provide adequate consumptive use water for a regional augmentation plan serving the <br /> unincorporated communities of the Huerfano River basin in our county, adjudication of the <br /> necessary augmentation and exchange plan, obtaining all necessary permitting, construction <br /> of all facilities necessary for project operation—storage,diversion, withdrawal,and <br /> augmentation structures as well as measuring devices—and creation and adoption of an <br /> augmentation certificate program. Estimated cost of the entire project is approximately <br /> $2,000,000. <br /> Should the grant be awarded,the funds will be used for study preparation costs, engineering <br /> costs, and appraisal costs. The District will not use any grant funds for legal fees. <br /> Furthermore: <br /> • The feasibility study will be completed in the CWCB format as described in the <br /> Water Project Loan Program Guidelines. <br /> • The District plans to apply for a loan from the CWCB; Attachment A is Anna <br /> Mauss's letter of May 3, 2013, indicating that the District's augmentation project <br /> "fits the initial project criteria for the [CWCB's] Water Project Loan Program." <br /> • The District has selected an engineer to complete the study: TZA Water Engineers, <br /> Inc., 12596 W. Bayaud Ave., Ste 330, Lakewood, CO 80228, 303-971-0030. <br /> • Attachment B is a scope of work and cost estimate for the financial feasibility study <br /> from TZA Water Engineers, Inc. <br /> • A preliminary loan application is Attachment C. <br /> • Attachment D is a copy of the court decree establishing the District under the Water <br /> Conservancy Act,C.R.S. § 37-45-101 et seq. <br /> • Attachment E includes the District's financial statements for 2011 and 2012, <br /> including income/expense statements and balance sheets. Please note that in the <br />