Laserfiche WebLink
<br />" <br /> <br />Agenda Item 14 <br />March 12-13,2007 Board Meeting <br />Page 3 of3 <br /> <br />. <br /> <br />ALP cost issue <br /> <br />Also, attached hereto is a letter to Governor Ritter from the Southwestern Water <br />Conservation District and the Animas-La Plata Water Conservancy District encouraging <br />the State to promptly engage in negotiations with the United States to acquire its <br />allocation of project water. The motive for this request, as described in their letter, <br />relates to a funding short fall that will occur this coming construction season, which <br />construction season is considered critical to minimizing the final construction costs and <br />therefore the cost of the water, as a result of the continuing resolution that the federal <br />government is presently operating under. <br /> <br />. <br /> <br />To date, the State has been reluctant to enter into such a contract for several <br />reasons. First, the State, if it enters into a contract, would be in competition with the <br />Tribes and Durango to market water in the region. Second, the capital cost of the water <br />to the State at this time would be approximately $24,380,068 for its estimated 10,460 AF <br />of project water supply or about $2,330 per AF. If the cost were calculated on an acre- <br />foot of consumptive use basis, that cost would be approximately $4,660 per AF. Third, <br />the State would assume a proportionate share of the O&M costs without any entity <br />currently identified to use the water in the near future. Finally, even ifthe State entered <br />into negotiations with the Bureau of Reclamation at this time such negotiations would not <br />be completed in time to alleviate the funding short fall during the upcoming construction <br />season. <br /> <br />If the State elects not to contract with the Bureau of Reclamation for its <br />allocation, or any portion thereof, the allocation would revert to Tribal ownership and the <br />associated costs assigned to Reclamation. The State has been aware of this situation for <br />some time and is considering different possibilities. In any case, the State does not have <br />to make a final decision on acquiring its project allocation until project construction is <br />completed and the costs of the allocation known. <br /> <br />Recommendation <br /> <br />This is an informational item and no actions are required. Staff intends to make <br />the Governor aware of this information. <br /> <br />Attachments <br /> <br />. <br />