BOARD00830

• Board Meeting Date: 1/12/1998
• Description: WSP Section - Colorado River Issues - Grand Valley Water Management Status Report
• Board Meetings - Doc Type: Memo

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involve Reclamation, the Grand Valley Water Users Association, Orchard Mesa .
Irrigation District and the Public Service Company of Colorado. Pursuant to paragraph
5.a of the Stipulation and Agreement in the Orchard Mesa Check Case, an agreement to
deliver surplus water in the historic users pool of Green Mountain Reservoir to the Grand
Valley Power Plant is required. A draft agreement was presented and discussed
paragraph by paragraph during the negotiation session and while there were a number of
suggested changes, only one potential deal breaker was noted and it related to the term of
the agreement.

Reclamation has proposed a 5-year agreement based on their understanding of the
Stipulation and Agreement in the Orchard Mesa Check Case. This was totally
unacceptable to the water users who wanted a much longer term. The water users would
like an agreement that lasts as long as the decree in the Check Case, which hopefully is
permanent.

Assuming a compromise on the term of the agreement is possible, I would expect a final
agreement in two or three more negotiation sessions as all parties appeared quite willing
to look for compromises that would complete this agreement. The next negotiating
session is scheduled for February 17th in Grand Junction,

BOARD'S $1.25 MILLION COST SHARE CONTRACT

The Board was authorized by Senate Bill 97-008, Section II(a) to make a
nonreimbursable grant in the amount of $1,250,000 from the Fish and Wildlife Resources .
Account of the CWCB Construction Fund to the U.S. Fish and Wildlife Service. These
funds provided the non-federal cost share of approximately 15% to plan, design, do
NEP A compliance, construct, operate and maintain improvements to the Grand Valley
Project. The improvements consist of the installation, operation and maintenance of
"check structures," automated gates and controls to operate the canal and check
structures, a new bypass turnout, and a new pump station for Highline Lake, These
features will reduce diversion requirements during July, August and September by
approximately 28,400 AF and contribute to improved flow conditions in the 15-Mile
Reach. .

Staff has drafted a contracted and provided that contract to the Service and other project
participants for review, The Service and Reclamation have decided that they would like
to use these funds for the long-term operation, maintenance and replacement costs
associated with the project improvements, Staff has been waiting for those agencies to
identify a fund management entity and develop a fund management agreement. We
received the first draft of the fund management agreement December 19, 1997 . We have
reviewed that agreement and revised our draft contract accordingly as well as suggested
some modifications to the fund management agreement. We are now waiting for final
word on who the fund manager will be. The fund manager choices have been narrowed
to either the Colorado River Water Conservation District or possibly a local bank in
Grand Junction. As soon as a final decision on the fundmanager is made, we will
proceed with these contracts and anticipate finalizing them within the next few months. .

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