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<br />Elkhead Reservoir <br /> <br />. <br /> <br />An authorization of $750,000 for Elkhead Reservoir was included in SB 86-27. The <br />authorization does not identify a project or a project sponsor. <br /> <br />In 1987, Morrison Knudsen Engineers submitted a feasibility study for a project that <br />included a spillway enlargement and an increase in reservoir capacity of2,400 acre-feet <br />at an estimated cost of$I,338,845. The report indicates that this is the project that was <br />intended by the 1986 authorization. The study identified several project participants <br />including the City of Craig. <br /> <br />For the past several years, the City of Craig and others have been conducting analyses <br />and studies ofElkhead Dam and Reservoir by Ayres Associates with the intent of <br />eventually acquiring the reservoir from the current owner, the Division of Wildlife. <br />Ownership would be obtained through an "Exchange Agreement" in which the City <br />would exchange land for the dam and reservoir. <br /> <br />A recent hydrology study by Ayres Associates has demonstrated that a spillway <br />enlargement for the existing reservoir is unnecessary. The study has reportedly been <br />accepted by the State Engineer's Office. The City is not intending to enlarge reservoir <br />storage capacity at the present time. Studies are currently being conducted to determine <br />the cost of relatively minor rehabilitation work needed on the spillway, stilling basin and <br />outlet gates. <br /> <br />The City of Craig is requesting that the authorization not be closed out in order that funds <br />may be available, if needed, for the rehabilitation work. Please see the attached letter <br />from Jim Ferree the City Manager. Mr. Ferree has indicated that the City is unlikely to <br />request any further extensions of the authorization. <br /> <br />. <br /> <br />Staff recommends that Elkhead Reservoir, as authorized in SB 86-27, not be <br />deauthorized. It is understood that 2000 would likely be the final year of authorization <br />and that the City would submit an updated feasibility study within the next few months to <br />provide, as a minimum, a description and evaluation of the proposed project as well as a <br />financial plan. Staff would request Board approval of the revised project before entering <br />into a loan contract. <br /> <br />Please see Agenda Item No. II f. for a recommended change in the authorization to <br />identify the City of Craig as the project sponsor for a reservoir rehabilitation project. <br /> <br />. <br />