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<br />;. <br /> <br />e.. <br /> <br />Mr. John Horton <br /> <br />-3- <br /> <br />September 30, 1987 <br /> <br />Work under item No. 4 will include a general assessment of <br />the water requirements, available surface water supply, water <br />rights, and water utilization. We anticipate that work under <br />this item will be rather extensive in light of the fact that <br />reservoir operation and water availability records are scarce. <br />We anticipate completion of a water rights inventory, evaluation <br />of hydrology records of the Huerfano and Cucharas rivers for <br />input to a reservoir operation study, and an evaluation to <br />estimate water utilization from the reservoir. Consideration <br />will be given to including project benefits from water storage in <br />the reservoir related to wildlife benefits and recreation. <br />Estimated water losses from the reservoir due to evaporation and <br />losses from the point of release to the point of diversion will <br />also be evaluated. <br /> <br />Alternative modifications to the dam and appurtenant <br />structures will be evaluated and cost estimates will be prepared <br />for input to project evaluations (work item No.7) as part of the <br />Item 5 and 6 work. We will consider service and repair of the <br />existing outlet works gates and the existing spillway as part of <br />the overall plan for modifications to the dam. The alternative <br />feasibility level designs will be completed in accordance with <br />accepted methods including specified requirements of the Colorado <br />State Engineers Office (SEO). Estimated project costs will <br />include a description of the derivation of unit construction <br />costs and pertinent factors affecting the estimated construction <br />costs. The work for Items 5 and 6 will not include any <br />additional field explorations. We will utilize the available <br />exploration information along with our observations and <br />instrumentation data on the performance of the dam following <br />development of the problems on May 9, 1987 as the basis for <br />evaluating alternative feasibility designs. It should be noted <br />that our feasibility evaluations may indicate the need for future <br />additional explorations to support final design efforts and cost <br />estimates for the project will include this consideration. <br /> <br />The work under item No.7 will include appropriate <br />evaluations to estimate the Irrigation Company's "ability to <br />pay". An estimate of the companies annual payment capacity will <br />be established based upon such factors as increased reliability <br />of water supply, recreational benefits which may be negotiated <br />with a variety of interested state and federal agencies, flood <br />protection, and possible revenues from the sale of reservoir <br />waters. We will work with you and the appropriate state and <br />federal agencies which have been preliminarily identified as <br />potential alternate funding sources to identify the most feasible <br />alternatives for the project. Our work will also include a <br />general assessment of the schedule of the project considering the <br />requirements of the alternate funding sources. <br /> <br /><t> GEOTECHNICAL ENGINEERS "'"C. <br />