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. . . driven" discussions in each ofthe principal watersheds to identify and evaluate current and future water needs and the alternatives for meeting those needs. These regional assessments would presumably include stakeholder-identified needs to improve water supplies, flood protection, recreation opportunities, environmental quality, etc. In consultation with the stakeholders, the CWCB and Division of Water Resources would then identify and evaluate the potential "inter-relationships, conflicts and compatibilities" among the various watershed plans and report the results to the General Assembly. The Farm Bureau workgroup proposes, in addition, the establishment and funding of an "investment fund" to provide direct financial assistance to develop projects identified through this process, which the workgroup proposes will take two years. This alternative to the regional meetings we have been preparing to convene will involve more time and expense, but I believe it could produce a solid turn-of-the-century assessment of our water resource accomplishments as well as the regional stakeholder perspective you seek as the basis to improve our Long Term financial Projection for the Construction Fund (and to revise the CWCB Long Range Plan), Ifwe begin our quicker, more narrowly focused effort soon and the General Assembly directs us to undertake the more comprehensive effort later in this legislative session, there is a good chance that our stakeholders will be less enthusiastic in their participation. At this point, we are still waiting to see how Representatives Smith, George, Reeser and Miller react to the process-oriented alternative proposed by the Farm Bureau workgroup. However, whether that process is endorsed by the General Assembly in the form of a bill or not, the Board clearly has authority to undertake this more extensive investigation of Colorado's future water resource needs and alternatives. Recommendation. It is my recommendation that we suspend our efforts to implement a 4-8 week series of regional meetings related to the Long Term Financial Projection for the Construction Fund, and that we watch closely the legislative response to the Farm Bureau study and workgroup proposal. Since we are anticipating that this two year process may be the subject of legislation, we are working with the Division of Water Resources to prepare a proposed budget that could just as easily be used as the basis for a Board recommendation in March to add an additional recommendation to the 1998 Construction Fund Bill for the implementation of this more comprehensive process. I don't believe that formal action is required at this meeting to implement this recommendation, although we will be looking for your guidance on this issue. Attachment L:\boardmem\jan98\IS.doc