BOARD00543

• Board Meeting Date: 7/28/2003
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

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Bear Creek Lake: Following the floods of 1965, Congress authorized the Corps of Engineers to
construct the Bear Creek Lake project in the Flood Control Act of 1968. Congressional authorization
provided for a permanent pool upon the condition that the State of Colorado furnish the necessary
water for that pool.

Subsequently, the CWCB acquired junior water storage rights for a 2000 AF permanent pool in Bear
Creek Lake. However, these rights being fairly junior in priority are not sufficient to replace
evaporation in all years.

In 1988, staff reached agreement with the Department ofInstitutions to utilize their surplus Simonton
Ditch water right (number 2 priority) for evaporation replacement via a substitute supply plan, which
the State Engineer's Office subsequently approved. The plan was renewed each year through 1993 and
worked effectively to meet the CWCB's obligation to replace evaporative losses. The status quo has
been maintained since 1993, at no cost to the CWCB.

In April, the Colorado Department of Human Services (CDHS), successor agency to Institutions,
advised us that it has begun investigating alternative uses for its Simonton Ditch right including
irrigation at Fort Logan, selling the rights to pay for infrastructure improvements, or leasing the rights.

The CDHS has also suggested that the CWCB lease the rights for $250 per acre-foot, or $68,750 for
the 275 acre-foot annual yield ofthe right.

We met with Mr. Bill DeOreo, the water consultant hired by the CDHS to help the agency evaluate its
options, and with Mr. Bradford Membel and Mr. David Piatek ofthe CDHS to further discuss the
matter. CDHS has made it clear that they want to obtain the maximum benefit for its water rights. We
made it clear that the State of Colorado, through the CWCB, must meet its obligation to replace
evaporation losses in Bear Creek Lake at a reasonable cost. We are awaiting further correspondence
from CDHS, but we are concerned that absent the Simonton Right to use for evaporation replacement,
Bear Creek Lake would have to be operated for evaporation replacement to the detriment of Bear
Creek Lake Park and potentially downstream water users if evaporation replacements are short or do
not occur in timely fashion.

South Platte Forum: The 14th Annual South Platte Forum will be held on Oct 22-23 at the Raintree
Plaza in Longmont. The theme of this year's forum is "Planning For Uncertainty." I have been invited
to speak at this year's forum. For more information visit htto://southolatte.iibrown.com.

Denver Water Drought Update: At a special meeting on July 14 the Denver Water Board heard that
its reservoirs have filled to 86% of their capacity. The Board voted to add a third watering day (for
areas that need additional water) to the summer watering schedule.

Denver Water Issues New Irrigation and Landscape Rebate Regulations: Denver Water will pay
its customers a rebate for purchasing and installing certain types of irrigation equipment, purchasing
and planting approved species of trees and shrubs, and purchasing and incorporating approved types of
soil amendment. Rebates start July I, 2003. Denver Water will randomly inspect properties for which
rebates have been submitted, to ensure that the rebate item has been installed, planted or applied
correctly.

Republican River Compact: Kansas, Nebraska and Colorado have agreed on a computer ground
water model, the last component in the Republican River Settlement, meeting a July I deadline.

In 1998, Kansas sued in the U.S. Supreme Court in order to regulate ground water use in Nebraska and
Colorado, to the extent that it depleted Republican River flows. The model will be used to ensure
compliance, with a 1943 compact, under a final settlement stipulation negotiated over some 14 months

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