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<br />Smart Bros. Inc. <br />July 20-21, 2004 <br /> <br />Agenda Item 14a <br /> <br />Alternative 1, No-build alternative, continue to rely on L WU and existing recharge area for <br />augmentation - If a project were not pursued, SBI would continue to rely solely upon LWU and the <br />existing recharge system for augmentation, As the current drought continues, LWU is in the <br />process of developing a curtailment policy based partly on an individual's ability to provide their own <br />augmentation coverage, Under the current situation SBI could still be more vulnerable to <br />curtailment. SBI does not find this to be an acceptable alternative, <br /> <br />Alternative 2, Purchase a senior water right for augmentation. This alternative is currently <br />used by many front range municipalities. SBI could purchase senior water rights out of Prewitt <br />Reservoir for augmentation purposes. If enough water was available for purchase out of Prewitt, <br />the cost of this alternative would be approximately $1,000,000. This alternative would not be <br />financially acceptable to SBI. <br /> <br />Alternative 3, Construct a recharge well and pipeline and pump to existing and new recharge <br />ponds. - This alternative would consist of drilling one well used to pump water into a series of <br />recharge ponds. The existing ponds on the farm are filled from the South Platte Ditch. This project <br />would allow flexibility in filling the existing ponds with a pipeline and would allow for the creation of <br />new recharge ponds along the pipeline route. SBI would also tie 4 existing wells into the pipeline <br />for supplying augmentation water directly back to the river. This is a drought management tool <br />currently being approved by the State Engineer to help provide augmentation water during the most <br />severe drought situations. The cost of this alternative is $266,500. <br /> <br />Selected Alternative 3, Construct a recharge well and pipeline and pump to existing and new <br />recharge ponds. - The SBI plan is to pursue Alternative #3, with the intent of generating <br />approximately 1000 -1500 acre-feet of depletion credits. Features of this alternative are as follows: <br /> <br />1. Drill one new well to pump water into the existing and proposed recharge ponds. The <br />well would pump up to a combined maximum rate of 7 cfs. This would produce up to <br />1000 acre feet annually, based on 60 days of available pumping, or 1500 acre feet <br />annually if 90 days of pumping are available. The well would be located within 100 feet <br />of the South Platte River. <br />2. Construct a 13,000 feet of 18" PVC pipeline to convey water to the existing and <br />proposed recharge ponds. <br />3. Construct 3 new recharge ponds along the pipeline route. <br />4. Tie 4 existing augmentation wells to pipeiine to pump water to the river in times of senior <br />call. Two of the existing wells belong to SBI, and two belong to neighbors who will <br />connect to the pipe in return for granting easements. <br /> <br />The Total Project cost is estimated to be: <br /> <br />1. <br />2. <br /> <br />Planning and Design <br />Construction & Contingency <br />TOTAL <br /> <br />$ 1,500 <br />265.000 <br />$266,500 <br /> <br />The project will begin construction in August 2004 and be completed in September 2004. All <br />easements and rights of way are being obtained. Easements with 2 neighbors have been <br />verbally agreed to and negotiations are in process. SBI expects to be exempt from 404 permitting. <br />This will be confirmed with the Denver District, Army Corps of Engineers. <br /> <br />Page 3 of 6 <br />