C150094 Contract

• Contract/PO #: C150094
• Contractor Name: La Plata Water Conservancy District
• Contract Type: Grant
• Water District: 0
• County: La Plata
• Bill Number: HB02-1152
• Loan Projects - Doc Type: Contract Documents

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Exhibit A
Grant for Proposed Feasibility Study of Long RoIlow Reservoir and Red Mesa Reservoir Enlargement

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B. Local Consultations

I. The study will identify other entities, organizations, and individuals likely to
have an interest in the outcome of the study and initiate a process whereby
other entities, organizations and individuals identified above can be informed
ofthe study activities and allowed an opportunity to participate in the study
process.

2. Study personnel will work with area Fire Districts and Authorities to
determine whether water needs to be available for fire protection from the new
Reservoir and, if so, how to make it available.

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3. Study personnel will also consult with the La Plata County Commissioners
and/or staff to inform them ofthe study process and keep them abreast of
Study findings in order to ensure that the Commissioners have no major
objection to irrigation plan and to any plans for a domestic water system.
Study personnel will also confer with the Commissioners on issues of growth,
open space, and the maintenance of an agricultural economy.

4. Study personnel will consult with members of the City of Durango City
Council and/or staff to make sure that Reservoir construction would not raise
any issues with the City regarding rural domestic water service.

5. The Project will help grow irrigated Open Space instead of subdivisions.
Study personnel will consult with envirorunental organizations to determine
their issues. Study personnel will need to determine who can speak for local
envirorunentalists.

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C. Rights-of-Way

The study will determine the easements needed for Lower Long Hollow
Reservoir, and its filling and delivery systems. The one major owner ofland
under Long Hollow Dam and ReserVOir, has expressed great interest in assisting
with the Project. Two owners of smaller tracts which could be affected will be
contacted.

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D. Permitting

Envirorunental documentation and permitting applications will be prepared during
the study, so that the permit applications can be readily finalized and provided to
the appropriate agencies at the completion of the feasibility study.

E. Financing

A Financial Plan will be developed that describes the financing and repayment of
the development costs. The package will identify and evaluate the funding
sources such as a loan for construction from the CWCB; a grant from the
Colorado Water Resources and Power Development Authority which was
authorized by their board, on November 30,2001, which included set aside $15
Million for grants and loans to fund projects to improve irrigation and domestic

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