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<br />Agenda Item 8 <br />March 21-22, 2006 Board Meeting <br />Page 2 0[2 <br /> <br />thereon for the ALP and specifically limits the reimbursable costs of the non-Indian sponsors to <br />W~ . <br /> <br />The Colorado Water Resources and Power Development Authority (CWR&PDA), on behalf of <br />the City of Durango and the ALP Water Conservancy District, has entered into an up front <br />repayment contract with Reclamation, as has the San Juan Water Commission. Colorado and the <br />La Plata Conservancy District in New Mexico have not entered into any repayment contracts at <br />present. <br /> <br />Implementation of the 207 language is important to all project sponsors, but more so to those <br />with repayment contracts in place. Over the last three months Reclamation representatives have <br />been evaluating various methodologies to implement Section 207. Reclamation's preferred <br />methodology is presented in the attached draft memorandum. The attached draft, containing <br />comments from me CWR&PD:A-Ie-gal-c-ouncil-Ms-:-Hammond;were-forwarded-to-Reclamation <br />by the CWR&PDA on February 16 and Reclamation has not yet indicated whether or not the <br />comments are acceptable. <br /> <br />Reclamation would like the four non-Indian parties to acknowledge the preferred methodology <br />by signing the 207 memorandum. The 207 memorandum is not a contract and does not change <br />any existing contracts in connection with the ALP. <br /> <br />The CWR&PDA approved the 207 implementation language, with their proposed modifications, <br />at its January 2006 meeting and authorized their Director to sign a memorandum that is in <br />substantial agreement with the draft and the modifications they suggested. . <br /> <br />Staff Recommendation: <br /> <br />Staff recommends that the Board authorize staff to sign a 207 memorandum, substantially in the <br />same form as that presented herein and with the concurrence of both the Attorney General's <br />Office and the CWR&PDA. <br /> <br />Attachment: Draft Section 207 Memorandum dated January 25,2006 <br /> <br />e) <br /> <br />Flood Protection. Water Project Planning and Finance. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />