Board Meeting 03/15/1984

• Board Meeting Date: 3/15/1984
• Description: Minutes, Agenda, Memorandums March 15, 1984
• Board Meetings - Doc Type: Meeting

interested in such negotiations . Due to the time which has
lapsed since the Board ' s initial decision in May, 1980, it seems
to me appropriate that the Board reconsider its initial
decision.
Discussion
When I originally recommended to the Board that it negotiate
for the regulatory capacity of Ruedi Reservoir, there were a
number of circumstances which influenced my recommendation.
First, the construction fund had ample cash on hand not committed
to other projects, which is no longer the case. Second, there
was some concern at the time that the State of Colorado might be
obligated to repay to the federal government the reimbursable
costs of Ruedi Reservoir allocated to the regulatory capacity if
the marketing of water did not provide sufficient revenues to
satisfy that repayment obligation. Third, there had been very
little interest up to that time in purchasing water from Ruedi
Reservoir, which suggested that the repayment obligation might
not be satisfied from sales of water in the foreseeable future.
Finally, there were substantial issues concerning the marketing
of water from the reservoir and the impacts which that might have
on the recreational uses of the reservoir. Since then, the
Bureau has done operations and water marketing studies which have
satisfied me that an appropriate balance between recreational
interests and the marketing of water will be attained.
The reasons which prompted the Board ' s original decision, as
I understand them, have changed substantially. In particular, it
is now evident that there is sufficient demand for water service
from Ruedi Reservoir to meet the federal government ' s repayment
requirements. Under the circumstances, and given the lack of
monies in the construction fund, it no longer seems necessary or
appropriate for the Board to engage in negotiations for the
acquisition of the regulatory capacity.
I do think, however, that the Board should be actively
involved in commenting on the provisions of any contract for the
sale of the regulatory capacity to the River District or other
entities. The Board should also continue to pursue discussions ,
as it previously decided to do, of the proposed legislation
concerning the future disposition of revenues from Ruedi
Reservoir after the repayment obligation is met .
Recommendation
I recommend that the Board advise the Bureau of Reclamation
that it no longer wishes to pursue formal negotiations to acquire
the regulatory capacity of Ruedi Reservoir.
JWM/gl
Attachment: as stated
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MEMORANDUM -2- March 9, 1984