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and outside the basin. With this legislation, we can avoid new reservoir construction and water <br /> transfers from other basins or from agricultural to municipal use. <br /> Colorado Springs possesses a very diverse water supply and delivery system, with over <br /> 75% of its water coming from the Colorado River Basin through transbasin diversion projects. <br /> The remainder is obtained from the Pikes Peak watershed or from the Arkansas River itself via <br /> the Fountain Valley Pipeline. The latter delivers - our Frryingpaan= Arkansas Project water: <br /> In 1990, we began a water planning process to determine our needs through the year 2040 <br /> based upon realistic growth projections. We found that though our existing water supply decrees <br /> may be adequate, there was a need for additional storage and delivery infrastructure. In 1996, <br /> the City adopted a plan of action which identified a number of approaches for meeting our future <br /> water demands, including water conservation, existing system improvements, and a new <br /> southern delivery system from Pueblo Reservoir. <br /> As part of this action plan, Colorado Springs Utilities approached the Southeastern <br /> Colorado Water Conservancy District and indicated our need for additional storage. The <br /> Southeastern Colorado Water Conservancy District then conducted a water and storage needs <br /> assessment on behalf of all District members, including Colorado Springs. Colorado Springs <br /> Utilities fully supported this district -wide effort. That study confirmed the need for additional <br /> storage capacity in order to provide firm yield to municipal entities and it analyzed a wide range <br /> of alternatives to meet that demand, including project re- operations and reservoir enlargements. <br /> 3 <br />