Technical and Cost Proposal

Alternative Source of Water Supply Provider Submitted by:

United Water & Sanitation District 8301 East Prentice Avenue, Suite 100 Greenwood Village, CO 80111

What is United?

Why is United unique?

•

Principle #1

• Best to own, rather than lease •

Principle #2

• Diversified portfolio of water rights over a broad geographic area

What Type of Water Will United Provide to Castle Rock?

• • • Tributary Water Fully Consumable Fully Renewable

Diversification of Water Supply

COLORADO HISTORICAL AVERAGE ANNUAL STREAM FLOWS 308,200 107,200 383,500 407,700 1,122,000 403,100 261,400 97,640 817,600 1,509,000

YAMPA

574,800 526,300 4,440,000 437,000 25,200

COLORADO WHITE 5

1,839,000 220,300 171,100 96,980 309,800

7

36,880 McELMO 31,590

6

184,600 332,300 470,100 229,900 2,771,000 156,300 45,320 53,550 1,498,000 323,600 BLUE 412,300 EAGLE 79,800 49,200 32,930 396,200 193,300 293,700 871,100 ROARING FORK 86,830 86,340 128,800 63,130 278,000 330,000 540,200 922,400 525,100

GUNNISON 4

122,500 TOMICHI 396,500

3

24,810 648,900 152,500 72,240 24,390 HUERFANO 18,070

1

666,200 594,700 151,900 270,000 35,920 24,950 172,400 443,900 660,100 290,700 Prepared by the Hydrographic Branch (2011 Revision) [all values in acre feet (AF)] 66,820 CONEJOS 50,930 320,200 88,890 127,600 234,100

TOTAL LEAVING COLORADO 9,997,000 AF

2

NORTH FORK REPUBLICAN 84,120 46,180 30,580 26,080 At Benkelman, NE 154,800 OFFICE OF THE STATE ENGINEER COLORADO DIVISION OF WATER RESOURCES

Diversification in the South Platte River Basin

Geographic Distribution of Ditch Systems Used by United

Cost of Renewable Water and Delivery System

Peak (Firm) Capacity or Non-Peak (Variable) Capacity?

Peak (Firm) Capacity or Non-Peak (Variable) Capacity?

Three Interconnect Delivery Options from Smoky Hill to Chambers Road

Operations and Maintenance Costs

Financing the Acquisition of Castle Rock’s Water Rights and Infrastructure

The Roadmap to Water and Water Infrastructure Acquisition

Financing Assumptions for Castle Rock’s Water Rights

• • • • • • Castle Rock Economic Development projects population growth of 36,000 in the next 12 years.

The U.S. Census Bureau has an average household size in Colorado of 2.53 persons per household, or 14,229 households over the next 12 years.

For purposes of our financing analysis, we assumed approximately 9,200 households over the next 12 years: • • • • 450 taps in 2013 550 taps in 2014 700 taps in 2015 833 taps thereafter, per year Approximately 55% of tap fee revenues applied to water purchases (about the same as Castle Rock’s current Water Resource Fee).

Tap fees increase 4-5% annually to reflect inflation and cost increases 5.5% interest cost. May be refinanced at any time without penalty

Integration with WISE System

Summary