BOARD00112 ‎(2)‎

• Board Meeting Date: 1/23/2007
• Description: Water Resources and Power Authority Director's Report
• Board Meetings - Doc Type: Memo

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Members, CWCB and Rod Kuharich
January 23, 2007
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In 2007, projects will be added and deleted from the DWRF Project Eligibility List by means of HJR07-1005. The
joint resolution will add 24 projects, modify the project descriptions of 44 projects and delete 8 projects. If the
resolution is passed, the resultant DWRF Project Eligibility List will contain 292 projects with an identified funding
need of over $880 million.

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The 2007 DWRF loan capacity is estimated at $50 million, and it is anticipated that $20 million of this capacity will
be utilized.

Small Water Resources Proiects and Water Revenue Bonds

In November, three of Parker Water and Sanitation District's Small Water loans were refunded through a $13.9
million bond issue. The refunding resulted in a $950,000 (6.9%) present value savings for Parker WSD.

Castle Pines North Metropolitan District was approved last December for a $33 million loan for water rights and
water storage facilities. The loan is expected to close within the next 5 months.

Animas - La Plata Proiect / La Plata River Future Proiects Escrow

Construction of the Animas-La Plata Project is approximately 45 percent complete. Funding for 2007 is critical to
maintaining the current construction schedule. Over the last nine months, much time has been spent on creating an
organization to operate the project, as well as on how the water will be allocated on an annual basis. Since the State
has an allocation of 10,000 acre-feel of water supply, I would encourage the State to actively participate in these
discussions and to examine ways whereby this water supply can be purchased when the project is finished in 2012.

Permilling-related activity, coordination with several agencies on streamflows and development of an operating
agreement with the State Engineer is continuing on the Long Hollow Reservoir Project. To date the Board has
authorized $89,000 from the LaPlata River Future Projects Escrow to finish this activity.

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Board Appointments

Steve Harris, representing the San Miguel-Dolores-San Juan drainage, and Steve Labonde, representing the Main
Colorado drainage, have been re-appointed by Governor Owens. Randall Palmgren, representing the Rio Grande
drainage, did not seek re-appointment. Mr. Palmgren will serve on the Board until a replacement has been
appointed andconfirmed.

Federal Lel!islation

Since early 2005, the Authority has been working with Colorado's Congressional delegation in seeking
authorization of a Section 595 (U.S. Army Corps of Engineers) program for Colorado. A Section 595 program
would offer assistance in the design and construction of water-related environmental infrastructure and resource
protection and development projects in Colorado, including projects for wastewater treatment and related facilities,
water supply, conservation and related facilities, stormwater retention and remediation, environmental restoration,
and surface water resource protection and development. Funding for publicly-owned projects under this program
would be 75 percent federal and 25 percent local. In 2005, Senator Allard sponsored S. 1202, the Rural Colorado
Water Infrastructure Act, in pursuit of this authorization. The Authority will again work with Colorado's delegation
in 2007 to seek authorization of this program. At the State level, a House joint resolution (HJR07-1004) from the
Water Resources Review Commillee in support of the federal legislation has been introduced and approved in the
House and the Senate.

Future Board Meetinl!s

March 2 - Denver (Authority Office)
April 20 - Denver (Authority Office)
June I - Durango (tentative)

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