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Agenda Item 20, Ju1v 21-22, 2009 Board Meeting <br />Animas-La Plata Project <br />Page 4 of 4 <br />financing could be through a CWCB Construction Fund Loan or perhaps the Water Supply <br />Reserve Account. <br />Staff recognizes that the water supply needs identified in SW SI in the San Juan Basin <br />should be addressed. The Water Supply Reserve Account request by the La Plata West Water <br />Authority for the developinent of a rural water systein, the request by the La Plata Archuleta <br />Water District for water to serve parts of the Florida Mesa and the Southwestern Water <br />Conservation District's strong support for Colorado to purchase its ALP water allocation are a <br />clear indication that the State should purchase at least a portion of its allocation. However, the <br />willingness and ability of any of the entities to subcontract for a portion of the State's allocation <br />is unknown. Staff still believes a water market analysis of the amounts, viability and interests on <br />the part of water users and providers in southwestern Colorado would be useful in helping to <br />arrive at a decision on how much of the State's allocation of ALP water to purchase. The drafting <br />of the "Scope of Work" (SOW) for the Market Analysis has benefited from comments by local <br />water interests both at the Board ineeting and at the recent Basin Roundtable ineetings and is <br />nearly complete. <br />Recommendation <br />Staff should continue to seek funding for the inarket analysis and work with the Tribes <br />and those seeking a portion of the State's allocation to develop a funding proposal for <br />consideration by the Board and potential inclusion in next year's Projects Bill. Finally, staff <br />should continue working with the Association, Reclaination, the Southwestern Water <br />Conservation District and the State Engineer as appropriate to address the water right <br />adininistration issues. <br />Attachinents <br />