BOARD00606

• Board Meeting Date: 11/19/2001
• Description: CF Section - LPWCD - Water Storage Facility Feasibility Study and Project Design
• Board Meetings - Doc Type: Memo

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La Plata Water Conservancy District
November 19-20, 2001

Agenda Item 26a.

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The work proposed is a feasibility study that will support construction of a reservoir on Long
Hollow. A reservoir at this site was determined to be the best way to improve administration of the
La Plata River, in accordance with the requirements of the La Plata River Compact. Enlargement
of the Red Mesa Reservoir is also proposed, to provide added storage in the upper basin.

The area that will benefit includes the whole La Plata River basin in Colorado (popuiation
approximately 4,000), and some areas of New MeXico,; However, benefits would accrue to the
State of Colorado as a hole due to improved administration of the interstate compact that divides
the waters of the La Plata River between Colorado and New Mexico. Improved administration will
allow more of Colorado's water to be used within the state.

Staff Comments

The project envisioned by this study will result in imprQved water administration, This will allow
more of Colorado's water to be used within the state, will serve to protect the water interests of the
state, and can be expected to limit the potential for litigation between Colorado and New Mexico,

This funding request is in the category " Issues of statewide impact or imporlance", from Policy
#14 (Non-reimbursable Project Investments), since the purpose is to resolve issues associated
with one of Colorado's interstate compacts.

The CWCB Finance Committee reviewed this non-reimbursable funding request at its September
23, 2001 meeting aM recommended that the CWCS Bo~rd approve this request at the November
19-20,2001 Board meeting, with some modificatiort. The Finance Committee recommended that a
the Feasibility StuCly scope of work be expandEld to address the economic, financial, and _
institutional aspects of the project, and that half the funds be directed to actual project design.

The LPWCD is a quasi-governmental entity subject to TABOR. It will be necessary for the District
to hold an election to allow it to accept State funqs in'excess of TABOR limits. This election is
scheduled for November 2001. '

Staff Recommendation

Staff recommends that the Board request the General Assembly authorize up to $444,645 from
the Construction Fund to be appropriated to the Colorado Water Conservation Board for
allocation to the La Plata Water Conservancy District. One half of the funds will be used to
conduct a Feasibility Study to evaluate construction of'the Long Hollow Reservoir and to
evaluate enlargement of the Red Mesa Ward Reservoir. One half of the funds will be available
for design work on the Long Hollow and Red Mesa W$rd projects, if the District can not obtain
funds for design elsewhere, '

Staff recommends that approval be contingent upon a revised Scope of Work which includes
evaluation of the economic, financial and institutional :aspects of the project, and upon all other
standard contracting provisions of the CWCB.

C:\wp51\proj,new\LPWCO 1101 memo

L:\boardmem\NoV01\ ~4b Nov 01 LPWCD

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