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<br />I <br /> <br />I <br /> <br />the recreational facilities, at approximately $500,000. They wanted <br />a commitment from the state before they proceeded with construction. <br />In order to provide that commitment, Senator Hatcher inserted it in this <br />bill. We would then have a firm. commitment to the federal government <br />that the state could provide its portion of the reimbursable costs, the <br />cost-sharing costs of the recreational facilities in the Closed Basin. <br /> <br />This would allow us then to write to the Bureau of Reclamation and send <br />them a copy of the bill and say, "The state of Col'orado is committed. <br />Move ahead with construction." So that is the reason that the Closed <br />Basin was added. We just got that information last Monday about both <br />the President's budget and, the State requirement on the Closed Basin. <br /> <br />We estimate the total construction will exceed $30 million. So the <br />State's portion of that project is very, very small. Obviously, we must <br />come up with that portion so we can move ahead with the construction <br />this coming fiscal year. ' <br /> <br />You are going to find from time to time that the Legislature will add <br />projects that have not been considered by this board, and that is the <br />prerogative of the Legislature, of course. <br /> <br />MR. STAPLETON: All right, we will then move on to the next agenda item. <br /> <br />MR. SPARKS: Mr. Sherman is now here, and I think he wanted to speak on <br />this cost-sharing. <br /> <br />MR. STAPLETON: All right. We passed a motion approving the Senate Bill, <br />but we would like to hear it from you, even though the motion has been <br />passed. <br /> <br />MR. SHERMAN: Thanks, Ben. Actually all I wanted to do was to bring the <br />Board up to date on what is happening in the cost-sharing area. ' It <br />relates in part to the Senate Bill. But I think it goes beyond that, <br />and it is important that this board appreciate the magnitude ana signifi- <br />cance of what the federal government is contemplating. <br /> <br />As you probably know and perhaps as you discussed this morning, under <br />the President's water policy, 10 percent of the vendable output of the <br />project, costs associated with those outputs, would be charged to the <br />states. The State's share would be 10 percent. The State would have <br />to come forward with 10 percent at the outset of the project. And as <br />to the nonvendable portion of the project, the State would be required <br />to advance 5 percent. In turn, 10 percent of the revenues that result <br />from the sale of vendable outputs would be returned to the State. So <br />if you have, for instance, an M&I project or a hydro project and the <br />users pay the entire cost of construction plus interest plus O&M, the <br />State would get back essentially what it had advanced. ' <br /> <br />The President instituted some 19 task forces, I understand approximately <br />175 federal employees, to implement his water policy, and that work is <br />continuing. One of those 19 task forces is in the area of cost-sharing. <br /> <br />Based on what we have seen thus far emanating out of that task force, <br /> <br />-7- <br />