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BARR <br />October 22, 2007 <br />Barr Engineering Company <br />4700 West 77th Street • Minneapolis, MN 55435-4803 <br />Phone: 952-832-2600 • Fax: 952-832-2601 • www.barr.com An EEO Employer <br />Minneapolis, MN • Hibbing, MN • Duluth, MN • Ann Arbor, MI .Jefferson City, MO <br />Bryan Adams <br />General Manager <br />Elk River Municipal Utilities <br />12069 Orono Parkway <br />Elk River, MN 55330 <br />Re: Proposal to Evaluate Water Supply Alternatives <br />Dear Mr. Adams: <br />The following is a proposal to conduct an initial evaluation of water-supply alternatives for the City <br />of Elk River. As we discussed, the water supply for Elk River (obtained from wells completed in the <br />Mt Simon-Hinckley aquifer) is likely sufficient for the next few years, given current population <br />growth in the service area. But Elk River and the surrounding communities are beginning to <br />experience accelerated growth that will likely continue as development follows the proposed North <br />Star rail line. Communities, such as Otsego, are growing rapidly and are using groundwater as their <br />water supply. As groundwater use (both public and private) in the vicinity of Elk River increases, <br />water supply conditions may change. <br />We understand that the Minnesota DNR has queried your interest in participating with nearby <br />communities, such as Ramsey, in developing a shared surface-water supply. Some of these <br />communities do not have access to bedrock aquifer systems and are looking for alternative sources of <br />water to meet future demand. Surface water requires significant investment in treatment facilities <br />before it can be used as a water supply. <br />Also, as we discussed, we are currently working with the Metropolitan Council in conducting a <br />water-supply study for the seven-county metro area. The major task in this study is the development <br />of amulti-aquifer computer model of groundwater flow in the area. The Metropolitan Council has <br />asked that we expand the model study area out to the western and northwestern extents of the Mt. <br />Simon-Hinckley aquifer, including the Elk River area. This model is scheduled to be completed in <br />the first quarter of 2008. At that time, this model can be used, with modifications, to evaluate a wide <br />variety of groundwater supply alternatives and to forecast the adequacy of supplies. <br />The study were are proposing is a screening-level review of your water-supply alternatives - an <br />inventory of potential alternatives that includes positives, negatives, and identifies initial information <br />that would be necessary to further evaluate. Based on this study, you may elect to evaluate further <br />alternatives in greater detail. <br />The following are the task that we propose to perform: <br />1. A review of Elk River's current water supply (groundwater from the Mt. Simon-Hinckley <br />aquifer) <br />