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(. ~ Town of Eagle August 4, 1977 Page 2 " the Town of Eagle's facilities can be economically developed in a complimentary manner to the benefit of the Town and the Brush Creek Valley. A major effort of study will address the various water supply alternatives (wells and surface supplies), transmission line requirements, and storage requirements with alternatives. Our July, 1976, work will be utilized in the development of the modified plan. A phasing plan will be developed to utilize existing facilities to the maximum practical extent. The McDermith and Schuster reports have previo:>usly addressed the distribution improvements. In addition, we are anticipati.1g that the first phase reports (see the July 25, 1977, Proposal) will address the distribution system im- provements on the west side of Eagle. The Master Plan report will address the distribution system only as these facilities ,3re affected by major supply facilities and as to modifications to meet Insurance Services Office standards. Water Rights The situation in 1977 has shown the water rights situation for the Town to be less than satisfactory and water rights have been the subject of much study and negotiation. Based on the resulting facilities plan, it is intended that a summary of the current water rights situation will be provided, and that a general approach to solutions be articulated. Due to the number of unknowns, it is not possible to develop a definitive analysis on water rights within the time frame necessary for 1977 CWCB appropriations. It is anticiapted that subsequent work will be performed within the next 6 months to clarify the water rights situation. Fi nanci ng Utilizing the Town's fiscal agent, we will provide a general financing strategy which combines CWCB, Farmers Home Administration, Four Corners Administration, Economic Development Agency, and private financing (if needed) to allow for a s-ystematic approach to facilities development..