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<br />ewCB, Members <br />September 3, 1980 <br />Page four <br /> <br />can then be considered. In the meantime, proposed projects which <br />would fall within our available funds, and for which a funding package <br />can be arranged commensurate with the Board's adopted limitation of <br />state funds, the staff will recommend such projects to the Board for <br />approval. <br /> <br />(d) If adequate funds are available, all projects estimated to cost less <br />than $10,000,000 will automatically have a feasibility study performed. <br /> <br />(e) In the event that funds are limited, proposed projects will be evaluated <br />under present criteria with priorities established by the staff but subject <br />to Board approval. <br /> <br />2. Criteria for Determininq the Terms of Board Participation in Pro;ects. <br /> <br />A. Existing Policy. <br /> <br />1. Limitation on state funds for anyone project. Prior to the enactment <br />of Senate Bill 537 by the 1979 Legislature, available construction funds <br />were limited. Under these circumstances, it was the Board's policy that <br />the construction fund be utilized to supplement those funds which could be <br />made available to the project sponsor from other sources. In keeping with <br />this policy, priority was given to the concept of joint ventures and cost <br />sharing by the project sponsors, the Board, and other state and federal <br />agencies. Under this policy, the Board established a limit on the amount <br />of state funds to be made available for proposed projects approved for <br />construction. This limit amounted to one-half of the estimated project <br />construction cost up to but not exceeding one million dollars. <br /> <br />2. Service Charges. Section 37-60-119 (2), CRS 1973, provides that the <br />Board may enter into contracts for the use of said water and power facili- <br />ties by and with any agency or political subdivision of this state, with <br />corporations, with individuals or with organizations composed of citizens <br />of this state. Any such contracts may provide for such charges to the <br />using entity as, in the opinion of the Board, are necessary and reasonable <br />to recover the Board's capital costs, together with operational, maintenance <br />and service charqes over the term of years agreed upon by contract. <br /> <br />The Board's Guidelines for financial assistance from the construction <br />fund define "Reasonable Service Charges" as a service charge which will not <br />create an unreasonable unit price when added to water service charges and <br />will provide a reasonable hedge against actual or projected losses to the <br />construction fund from any source as the results of unreturned investigative <br />or other expended costs. <br /> <br />During the initial years of the program, service charges were varied <br />depending upon the financial and repayment capability of the project sponsor. <br />In the December, 1979 meeting, the Board adopted fixed service charges for <br />the various purposes served by the project. These are: <br /> <br />Flood Control and Recreation <br /> <br />2 percent <br /> <br />Irrigation <br /> <br />3 percent <br />