Southeastern Colorado Water Activity Enterprise Minutes May 20 2004

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SECWAE May 20, 2004 2 RECORD OF PROCEEDING Mr. Reynolds reported there appears to be some question about some of the numbers, assumptions, and conclusions regarding the financial feasibility analysis performed in the GEI study. The staff believes that a more thorough analysis needs to be performed on the financial viability of the conduit before authorization by Congress. Mr. Reynolds recommended the Enterprise authorize entering a Request for Bids process and a contract with a firm to further study the financial feasibility of the Arkansas Valley Conduit. Mr. Long moved, seconded by Mr. Bailey, to authorized Mr. Reynolds recommendation. Motion unanimously carried. PREFERRED STORAGE OPTIONS PLAN (PSOP) REPORT: Mr. Reynolds reported at the last pSOP meeting the legislation and IGA were reviewed. The next meeting is scheduled for May 25 at 10:00 am at the District office. Mr. Reynolds said the U.S. Geological Survey has submitted the additional water quality monitoring stations, and Pries dent Everett will sign the contract on behalf of the Enterprise. ALLOCATION COM ffME REPORT: Mr. Hamilton said the Allocation Committee met May 12 and May 20, and explained that municipal return flows generated by the Fountain Valley Authority (FVA) members and the Board of Water Works of Pueblo (BWWP) be allocated to those entities because they exercised their First Right of Refusal to purchase their own return flows. Last year the Enterprise had to use stored water to make up other municipal return flows allocated, there will be little, if any other municipal return flows available. W. Hamilton said the Allocation Committee recommends that the Enterprise Board allocate municipal return flows to the FVA and BWWP based upon their measured return flows and that no other municipal return flows be allocated, and allocate I,358 acre-feet of return flows from 2004 agricultural use to the ag entities (as shown on the chart provided to the Board) on a "time forward" basis. Mr. Hazard moved, seconded by Mr. Aschermann, to approve the recommendations of the Allocation Committee. Motion unanimously carried. Mr. Hamilton said Manitou Springs has submitted a request for Project water. Manitou Springs was included in the District at its origin but had not requested water until 2003. In 2003, the Board authorized the allocation of water to Manitou Springs from the Enterprise Project water account. The Allocation Committee recommends doing the same in 2004. The District will continue to work with Manitou Springs to address Fryingpan- Arkansas Project water supply. Mr. Hamilton recommended that the City of Manitou Springs be allocated 38 acre -feet of water from the Enterprise Project water account. Mr. Hazard moved, seconded by Mr. Aschermann, to approve the recommendation. Motion unanimously carried. LEGAL REPORT: Mr. Leonhardt reported in Southeastern,s return flow exchange case, Bob Hamilton and he have continued some discussions with Colorado Springs Utilities (CSU), the Board of Water Works of Pueblo (BWWP) and their attorney. They are still awaiting their comments on the proposed decree and stipulation that legal counsel provided to them early last month. Mr. Hamilton met with CSU and BWWP, as well as the Division Engineer's Office on May I0, to discuss how the return flow exchanges are to be administered and how the accounting will work. The proposed Pueblo Flow IGA provides that this is one of several cases in which the parties are to negotiate a settlement by October 1, 2004. Mr. Leonhardt said legal counsel also is still awaiting comments that the Catlin Canal's attorney had promised to provide on the proposed decree and stipulation. Mr. Miller said that Pueblo West's request to use unused capacity of the pueblo Reservoir municipal outlet works and pending water court cases involving Pueblo West and Fry-Ark return flow exchanges will be discussed in Executive Session.