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<br />we have planned a ground breaking ceremony in Cortez on the 17th day of <br />September. During that period of time we will also survey some of the <br />drought stricken areas of southeastern Colorado. That area has been <br />harder hit than any other area, although they have also received some <br />of the welcome rains that have been falling generally throughout the <br />state the past week. But it was not enough to increase the flow of <br />the Dolores River. <br /> <br />That is all I have for. the director's report, Mr. Chairman. <br /> <br />MR. FETCHER: I would like to ask Larry if he could give us an update <br />on the projects authorized under Senate Bill 35. I think this is <br />important that the board be brought up to date on that. <br /> <br />MR. SPARKS: This is the board I s own construction fund. We are moving <br />rapidly to initiate construction, utilizing funds that the legislature <br />made available during this session. Those funds will be coming in at <br />the rate of about $700,000 every six months. We received our-first <br />allocation of $700,000 about the 30th of June. We already had $400,000 <br />on hand. So we have a little over a million dollars on hand at the <br />present time to initiate construction. <br /> <br />We will initiate construction on all the projects as rapidly as we can <br />get the federal matching money or other funds that are required for . <br />project construction. We will not be able to adhere to-the priority <br />schedule strictly because we can't start on a project until we get the <br />federal money. If we are ready to go and we' don't have federal money <br />for a particular project, we will have to skip that project and go to <br />the next project until the federal money becomes available. <br /> <br />For Hayden,- we have sufficient state funds to initiate construction on <br />that project as soon as we can get the,bids out, which will be before <br />the end of the summer. <br /> <br />Dove Creek, we also should have sufficient state funds to initiate at <br />least construction on part of this project. <br /> <br />Hotchkiss, we will be able to move quite rapidly, since Hotchkiss has <br />already received most of its federal funds. <br /> <br />Others will fall in line as soon as the remaining financing can be <br />obtained. The legislature has appointed a Joint Interim Committee to <br />study water problems. I met with that committee a couple of weeks <br />ago. I informed the committee that I thought the state would have to <br />do a great deal more in the way of small water resource development <br />throughout the state. Further extensive federal help is extremely <br />doubtful, except through some of the small programs that" the federal <br /> <br />-30- <br /> <br />I <br /> <br />I <br />