Southeastern Colorado Water Activity Enterprise Minutes June 16 2005

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SECWAE June 16, 2005 2 RECORD OF PROCEEDING FINANCIAL REPORT: Treasurer Simpson reported that the financial report for the month of May for the Enterprise was mailed to the Board and moved for the approval of the financial report for May and payment of the June bills, seconded by Mr. Bailey. Motion unanimously carried. LEGISLATIVE REPORT: Arkansas Valley Conduit Mrs. Arbogast reported there is significant activity continuing on the effort to authorize the construction of the Arkansas Valley Conduit, with a mark -up schedule for Thursday, June 16 in the House Subcommittee on Water Resources and Environment (Transportation and Infrastructure Committee). The Subcommittee's mark -up of the Water Resources Development Act (WRDA) marks the first official action on WRDA this Congress. While WRDA is generally reauthorized every two years, no bill has been enacted since 2000. In some circles there is pessimism that a bill will be enacted this year because of the high cost of the projects being requested and controversies surrounding the Corps of Engineers' transfer of funds between projects. Mrs. Arbogast said both Congressman Salazar and Congresswoman Musgrave have made requests to the committee for conduit authorization, which Congressman Salazar is a member of the subcommittee. In addition, Congresswoman Musgrave is the House sponsor of the stand -alone bill introduced last month by Senators Allard and Salazar. It is possible that the WRDA mark -up will include a $34 million earmark for the conduit in Musgrave's district and a $34 million earmark in Salazar's district. These earmarks would be under the water supply and infrastructure section of the bill and not be explicitly stated to be for the conduit, because of its existing authorization under the Bureau of Reclamation. They are not included in the mark -up, but are said to be part of the manager's amendment when the bill goes to the House floor. To date no dates have been set for any hearings on the stand -alone measure. In addition, the same subcommittee has held two hearings on the issue of financing water infrastructure need. Congressman Salazar has voiced his strong support for a legislative initiative to address the issue. If Congress were to pass such a bill to fund water infrastructure needs, it is possible the conduit parts of it could be included. Mrs. Arbogast reported a group of conduit participants, District staff members, and herself toured parts of the Southern Water Supply Project (SWSP) in the Northern Colorado Water Conservancy District, and visited at length with Northern District officials regarding the project. This activity was suggested by Senator Salazar so that the financing of the two projects could be compared and potential cost savings identified. Mr. Broderick said the Board members would be provided the packets that the participants of the tour were given. In short, the Northern District staff told the group that if the SWSP were to be built today instead of a decade ago, its cost ($70 million) would likely have been doubled and perhaps tripled because of the cost of steel at this time and inflation.