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. . . Water developed by the six alternatives is expected to cost between $80 and $200 per acre-foot, which is well beyond the financial ability of Lower Basin agricultural water users, As previously mentioned, the specific uses of the water from a potential storage site have not yet been identified. It is possible that the project could be pUTely agricultural or it could also serve multiple purposes including environmental uses and/or to facilitate water rights administration. If one assumes that there is potential for a multi-purpose storage facility(s), and that a "partoering entity(s)" would derive benefits from the multi-purpose use of stored water, the following example is provided to help illustrate one option for project funding. It is assumed that Lower Basin users may be capable of paying approximately $50 per acre-foot for additional water supply. If one then calculates how much up-front funding would be required from a public or public/private partoership in order to produce water at $50 per acre-foot, the results are summarized below for Alternatives 3, 5, and 6: Alternative Construction Cost For $50/AF Water Annual Supply U -front Fundin % of Cost AF 3 $14,440,000 $10,252,000 71%) 10,600 5 $5,300,000 $2,915,000 (55%) 4,600 6 $9,100,000 $7,098,000 78%) 6,000 (1) The $50/af covers local water share of construction cost plus all recurring carriage, O&M, and energy costs. This example is provided to give the Board an idea of one possibility, which could be further evaluated in the feasibility study, and this example mayor may not be realistic. The feasibility study would look at the opportunities and challenges of developing both single and multi-purpose facilities, and various means of funding the projects. The funding options would also look at various interest rates and terms versus up-front capitalization. Staff Recommendations The reconnaissance level study indicates that there is available water under a junior water right, and that potentially suitable sites are available for developing additional water storage in the Lower South Platte, Staff recommends that the Board authorize up to $150,000.00 to implement a feasibility study of the alternatives outlined above. The feasibility study would be focused on completing the following tasks: I, Firmly establish the quantities of additional water that could be used in the Lower Basin to: provide alternate and lor new sources of augmentation water; provide environmental benefits for instate species of concern; and to facilitate Compact administration. 9 -