Exhibit A CWCB FLOOD RECOVERY GRANT PROGRAM Statement of Work

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1 Exhibit A CWCB FLOOD RECOVERY GRANT PROGRAM Statement of Work Emergency Flood Recovery Assessment, Design and Recovery Project Description: The purpose of this grant is to provide technical assistance to assess and facilitate the repair of damages to water supply infrastructure caused by the 2013 flooding. Funds may be used to pay for damage assessments, master planning, initial rebuilding design or engineering, permitting, and restoration construction to infrastructure owned by water providers and water users in those areas that have been impacted by the September 2013 floods in the South Platte River Basin. Northern Colorado Water Conservancy District (Northern Water) will act as the fiscal agent administering Colorado Water Conservation Board (CWCB) grant funds for expenditure by qualifying local entities in need of flood recovery assistance. The grants are not revenues or expenditures of Northern Water. The September 2013 flood caused remarkable damage in the South Platte River Basin. Reservoirs, diversions, and ditches have been damaged and, in some cases, destroyed in many areas. For others, the water infrastructure is intact, but the river or stream has moved so that it is no longer possible to divert water for the decreed beneficial use(s). Riparian areas have also been severely impacted and river re-channelization is severe in many areas. Water users have asked CWCB to take a leadership role in supporting impacted areas. Federal funds may not be at adequate funding levels, or dispersed in a timely manner to support needed repair of the water infrastructure of reservoir and ditch companies or water providers (water users). Further, flood insurance typically does not exist nor cover this infrastructure. In reaction to these requests the CWCB, on September 25, 2013, approved a $1.65 M grant to be used for flood recovery purposes with Northern Water acting as the fiscal agent to administer the grant funds in accordance with CWCB criteria and subject to review by CWCB. CWCB has directed that the funds made available under the grant are to be used as seed money to facilitate loan applications which may be required to fund the full cost of needed repairs, as well as to accomplish initial needed repairs. Many of the water users are already assessing damage and have begun recovery work. However, many do not have adequate financial and technical resources to initiate the rehabilitation process, yet have a need to act expeditiously in light of the pending storage 1

2 season and the 2014 irrigation season. Therefore, it is critical to provide initial emergency grants as soon as possible, recognizing that some of the details and criteria for the distribution of the funds will develop in the near future. Grants distributed to water users would act as seed money for restoration and rehabilitation projects by facilitating the preparation of documents required for CWCB Construction Fund loans, STTFPBA loans, or other loan applications that are necessary for large construction projects. Grants from these funds could also be used to fund initial construction that will assist companies in getting back online temporarily or permanently. Examples of allowable short term assistance may include, but not limited to, headgate and ditch repair and clean up, i.e. projects that are shovel ready. Neighboring water users are encouraged to work collaboratively and cooperatively to minimize costs and to address challenges associated with river re-channelization or relocation. Grant resources could be used to further determine the best course for restoring the river channel. At the applicants discretion, they may partner with Colorado Parks and Wildlife, CWCB, and NGOs to incorporate fish and paddler friendly designs where possible. The following limitations for funding of grant applications will be imposed. These may be changed at the direction of CWCB. Multiple water users (individuals or organizational entities) that own, operate, maintain, and/or benefit from a single diversion point on a stream shall be considered, for the purpose of this grant program, a single water user. TASKS: Task 1: Technical Services Seed Money Description: Up to $25,000 available per project/structure to be used for technical services needed to prepare the project for construction, and may include collaborative master planning for a stream or stream reach, engineering, permitting, or the preparation of documents required for loan or other grant applications. Technical Services Seed Money grants would be limited to 75%, up to $25,000 (whichever is less), of the total planning, engineering and permitting costs for each project or structure that will not be reimbursed from other non-water user financial sources. The remaining funding required must be matched from other sources or in-kind planning, engineering, or permitting services provided or paid by the water user. Grants for technical assistance involving multiple water users (each with a separate diversion point) working cooperatively and collaboratively, such as for re-channelization of a stream reach or combining diversion points or diversion structures, may be approved for up to $25,000 per diversion point involved in the collaborative project, not to exceed 75% of the total cost of the work not reimbursed from other funding sources (i.e. if three water users combine efforts, the maximum request should be $75,000, and to receive a maximum 2

3 grant of $75,000, the total qualifying costs for the project not reimbursed from other funding sources would equal or exceed $100,000). In these cases, a single application should be submitted with one of the water users identified as the project representative; however, each applicant will be a signatory Subgrantee. That portion of the grant allocated to each of the involved water user entities will count towards each water user s maximum award under this grant program (see Applicant Guidance section). Actual reimbursement of grant funds shall be based on required documentation showing final project costs and other grant funding from other sources used to pay project costs. Task 2: Assistance for Shovel Ready Projects Description: Up to $20,000 in grants would be made available for initial construction, which could be part of the cost sharing financing requirements of other non-cwcb financial assistance programs or in-kind services. This type of grant would be limited to 75%, up to $20,000 (whichever is less), of the total construction costs for each project or structure which has not been reimbursed or will not be provided from other sources of funding. The remaining funding required must be matched from funding or in-kind construction services by the water user. Examples may include, but are not limited to: Example 1: The total project cost is $110,000. Another grant program that pays 75% of the project and requires a 25% match is used to pay for $82,500 of the project cost. The CWCB grants may be used as a part or all of the required 25% match, not exceeding 75% of the remaining costs (which are $27,500; 75% of which is $20,625) limited by a maximum of $20,000. Example 2: The total project cost is $80,000. No other funds are available to pay for a portion of the project costs at the time the grant application is approved. The CWCB grants may be used to pay for project costs that are currently shovel ready (i.e. construction has begun or can begin immediately), not to exceed $20,000. The water user would pay for the remaining $60,000 of the project cost from its own funding source, or a funding source from which funds were later secured (which may include financing through the Construction Fund or the STTFPBA). Grants for shovel ready projects involving multiple water users (each with a separate diversion point) or multiple projects may be approved for up to $100,000 and may include up to five projects or structures. In the case of collaborative, cooperative projects, a single application should be submitted with one of the water users identified as the project representative; however, each applicant will be a signatory Subgrantee. The amount allocated to each entity involved in the cooperative project seeking the grant will count towards each water users maximum award under this grant program (see Applicant Guidance section). 3

4 APPLICANT GUIDANCE: Grant funding is meant for applicants who can utilize the funds in an expeditious manner. Grant approval expires within 60 days after a Notice to Proceed has been issued to Subgrantee(s) by Northern Water if applicant has not begun expending grant funds. An applicant may be awarded a maximum of $100,000 for any combination of up to 5 projects by a single water user (Task 1 and/or Task 2). If more than one application is submitted by the water user, the applicant must include the Priority Number based on applicant s project preferences for that project as only one project per applicant will be reviewed in each Grant Application Review Cycle. Grant applications that involve multiple water users will be considered as one project for each water user involved, with costs split between each water user as shown in the application. If no allocation of project costs to each entity is indicated in the cooperative application, costs will be split evenly between the involved water users. These grant allocations will be used for the purpose of calculating grant limitations for each entity involved in the cooperative application. Applications will be considered and awarded on a bi-weekly basis until grant money is exhausted. Grant Application Cycles will consist of two weeks for accepting applications. Review of the grants submitted during a Grant Application Cycle will begin immediately following the due date for applications in the Grant Application Cycle. The first Grant Application Cycle is anticipated to begin October 11, with applications due on October 25. The goal is to award grants from this Grant Application Cycle by November 4, or as soon thereafter as possible. The second Grant Application Cycle is anticipated to begin October 26, with applications due on November 8, and awards made by November 18, or as soon thereafter as possible. This process will continue until the grant budget under this program is exhausted. Grant money can cover costs that are reasonable and necessary to perform the work, including contracted services, use of rented equipment, and supplies directly related to the project. Grant money cannot be used to pay regular-time wages for budgeted permanent or seasonal employees, or to pay for use of equipment owned by the applicant. Grant money can be used to pay overtime wages for budgeted permanent or seasonal employees, or wages for temporary employees hired to perform work directly related to the grant. Regular-time wages for budgeted employees and use of equipment owned by the applicant used to perform work related to the project may count towards the applicant s match of in-kind services. There should be no duplication of benefits incurred from other revenue sources used to complete the work, including but not limited to revenue from other grant programs or other credits (such as insurance proceeds or salvage values). Grant submission or completion of Task 1 is not necessary for grant submission or approval of Task 2. If following the submittal of grant application(s) but prior to reimbursement of any funds award by and expended from the CWCB grant, the water user(s) receive additional grant funding from 4

5 other sources for the project(s), or the total cost of the project(s) is determined to be less than shown on the grant application, the water user(s) is required to immediately notify Northern Water and CWCB of the additional funding or the lesser project costs. The amount of CWCB grant funding will be adjusted in accordance with the funding criteria to account for the additional funding. Threshold Criteria This grant helps implement projects and processes to assist water users recover from flooding in order that they might realize the decreed beneficial uses of existing water rights for agricultural, domestic, municipal, and/or industrial water uses. Thus, the following minimum threshold criteria apply: All applicants must be in flood impacted areas within the South Platte Basin and working to recover water infrastructure impacted by the September 2013 floods. All applicants must be holders of decreed perfected water rights for agricultural, domestic, municipal, and/or industrial uses associated with the infrastructure for which grant funding is requested. Evaluation Criteria To become eligible to receive these grant monies, water users must submit applications which demonstrate that the monies would be used for flood restoration and rehabilitation projects and that the projects comply with the criteria (listed below) developed by CWCB and provided to Northern Water, as described in the following paragraphs. Applications will be received and reviewed by Northern Water. Northern Water will evaluate the merits of the water activity proposed for funding utilizing the criteria provided and approved by CWCB. Based upon this review and evaluation, Northern Water will make recommendations to CWCB for award under the grant program. CWCB reserves the ability to review the applications and the Northern Water evaluation of those applications and approve the award and payment of grants. Additional detail and criteria for the distribution of the funds may need to be developed by CWCB in conjunction with Northern Water prior to initial public grant advertisement. For grant cycles in which the total requested amount of all grants is less than the budget remaining under the grant program, grant applications will be evaluated on a pass/fail basis. In order to receive a pass evaluation, grant applications must meet the threshold criteria, and meet one or more of the tiered criteria listed below. Any grant application evaluated as fail will have the opportunity to resubmit the grant application in subsequent Grant Application Review Cycles to address the deficiencies. For Grant Application Review Cycles in which the total requested amount of all grants exceeds the budget remaining under the grant program, preference will be given to projects that meet one or more criteria from each of the three tiers or categories. Each 5

6 tier is grouped in level of importance. For instance, projects that meet Tier 1 criteria will outweigh projects that only meet Tier 3 criteria. Tier 1: Promoting Collaboration/Cooperation and Meeting Water Management Goals and Identified Water Needs a. The water activity addresses multiple needs or issues, including consumptive and/or non-consumptive needs. b. The number and types of entities represented in the application and the degree to which the activity will promote cooperation and collaboration among traditional consumptive water interests and/or non-consumptive interests. CWCB has directed that preference will be given to multiple parties addressing stream reach rechannelization. Tier 2: Facilitating Water Activity Implementation c. Funding from this Account will reduce the uncertainty that the water activity will be implemented. For this criterion the applicant should discuss how receiving funding from the Account will make a significant difference in the implementation of the water activity (i.e., how will receiving funding enable the water activity to move forward or the inability to obtain funding elsewhere). d. The amount of matching funds provided by the applicant via direct contributions, demonstrable in-kind contributions, and/or other sources demonstrates a significant and appropriate commitment to the project. Matching contributions should, at a minimum, conform to the specifications laid out for each task. Tier 3: The Water Activity Addresses Other Issues of Statewide Value and Maximizes Benefits e. The water activity helps sustain agriculture, and/or meets existing domestic, municipal, and industrial water needs pursuant to existing water rights f. The water activity provides a high level of benefit to Colorado in relationship to the amount of funds requested. g. The water activity is complimentary to or assists in the implementation of other CWCB programs, for example CWCB s loan programs. Reporting, Reimbursements, and Final Deliverable: The applicant must provide adequate documentation of qualified incurred expenses to Northern Water in order to receive reimbursement of those qualified expenditures from the approved grant funds. Once acceptable documentation has been compiled by the applicant and submitted to Northern Water, the documents will be submitted to CWCB for payment. Applicants can submit requests for reimbursement monthly, based on a schedule developed by Northern Water. Work performed by the Subgrantee after September 9, 2013, will qualify as in-kind services or contributions. Only those expenses incurred by the Subgrantee after a Notice to Proceed 6

7 has been issued to Northern Water by CWCB shall be considered as qualifying for reimbursement. It is anticipated that a minimum of 45 to 60 days will be required from the date of submittal of adequate, acceptable documentation to CWCB until payment is made to the applicant by Northern Water. The applicant shall provide the CWCB, through Northern Water, a progress report with each reimbursement request. The progress report shall describe the completion or partial completion of the project, identifying the estimated percentage of project completion. At completion of the project for which grant funds were used, the applicant shall provide a final report that summarizes the project and documents how the project was completed. This report may contain photographs, summaries of meetings and engineering reports/designs. Northern Water and CWCB has the option to inspect the project. If the water user(s) receive additional grant funding from other sources for the project(s), or if the total cost of the project(s) is determined to be less than shown on the grant application following reimbursement of expenditures using awarded CWCB grant funds, the water user(s) is required to immediately notify Northern Water and CWCB of the additional funding and/or the lesser project costs. The amount of the CWCB grant funding will be adjusted in accordance with the funding criteria. Should the reimbursements to date exceed the reimbursements that would be allowed under the funding criteria, the water user(s) will be required to repay the CWCB grant fund for the difference between the funds reimbursed and the maximum amount of reimbursement allowed under the funding criteria. Northern Water shall submit a progress report to CWCB every 6 months, beginning from the date of the issuance of grant monies for the specific project. The progress report shall summarize the projects for which grant funds were used, and contain by reference each of the final reports prepared by the applicants. CWCB reserves the right for CWCB or Northern Water to perform on-site observations of any project funded by this grant throughout the duration of the grant to ensure that the actual progress is consistent with reported progress, and that the work is otherwise consistent with the grant application. Engineering: All engineering work (as defined in the Engineers Practice Act ( (10) C.R.S.)) performed under this grant shall be performed by or under the responsible charge of professional engineer licensed by the State of Colorado to practice Engineering. Northern Water and CWCB will not provide engineering services under this grant, neither expressly or implied, nor does approval of a grant application imply that Northern Water or CWCB have any oversight/responsibility for project engineering or construction. Permitting: Applicants will be responsible for obtaining all necessary licenses, certifications, approvals, insurance, permits, and other authorizations required by law to perform the proposed work. Northern Water and CWCB will not provide licenses, certifications, approvals, insurance, permits, and other authorizations under this grant, neither expressly or implied. Approval of a grant application does not imply that Northern 7

8 Water or CWCB have verified that the Applicant has obtained all necessary licenses, certifications, approvals, insurance, permits, and other authorizations required by law to perform the proposed work, rather it is the sole responsibility of the applicant to obtain and maintain these necessary items.. PROJECT BUDGET: WSRA Statewide** Total Costs WSRA Basin** Matching Funds** Total Project Costs** Task 1: Technical Services Seed $1,000,000 $100,000 $366,667 $1,466,667 Money Task 2: Assistance for Shovel Ready $500,000 $50,000 $183,333 $733,333 Projects Total $1,500,000 $150,000 $550,000 $2,200,000 * Allocation of funds among Task1 and Task 2 are estimates only. Allocations may be revised by Northern Water based on the application requests. ** Represents a minimum level of funding by Project applicants reflecting the allocation of funds among Task 1 and Task 2 as indicated above. No money or matching funds will be provided by Northern Water. Northern Water will be acting as a fiscal agent only to administer the grants. SCHEDULE: Task Start Date Finish Date 1 Notice to Proceed to Northern Notice to Proceed days Water by CWCB 2 Notice to Proceed to Northern Water by CWCB Notice to Proceed days 8