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the need to set up ajoint meeting in January to coincide with the annual Colorado Water Congress Convention. I intend to seek your guidance about this at our meeting. Financial Audit Complete: The State Auditor has issued his final report of the Construction Fund Loan Program Performance Audit. The final report identifies progress made by the CWCB in completing the original recommendations made by the Auditor in September 1998, namely the hiring of new accounting and contract compliance personnel and the adoption of several new financial policies, The report states that of the original 18 reconunendations, all have either been satisfactorily completed or are in progress of being completed by the CWCB. The report was presented to the Legislative Audit Committee in June and was accepted by the Committee as complete. Fire Impacts: On June 12 two fires started along the Front Range. The Bobcat fire, caused by a campfire, began one mile north of the town of Drake in Larimer County, and the Hi Meadows fire, with an unknown cause, began in southern Jefferson County, north of the 1996 Buffalo Creek burn. Both fires burned about 10,500 acres and multiple homes and other structures. Impacts from the fire include not only fire damage to property and structures, but also an increased occurrence of flood and geologic hazards as a result of the loss of ground cover. CWCB and CGS staff have visited both sites and done preliminary hazard assessments. Both areas are at an increased risk of flood and debris flow damage as a result of the fires, especially during severe storms. The National Weather Service is aware of this increased risk, and will issue warnings accordingly. The CGS and USGS are currently doing an additional, more in- depth study to pin-point specific areas that are under increased risk. Field reports will be published via the web and distributed to interested parties in the near future. MEGA Board: On June 12 the MEGA met and approved our revised Severance Tax requests for FY 2001-2002. A sununary of our requests is attached. HB 00-1419 Signed: On June 14 Governor Owens signed the 2000 Projects Bill into law, Special Water Committee: The General Assembly's Special Water Conunittee is scheduled to meet in Denver on Aug. 10, Agenda topics include an update on implementing the reconunendations from the SB 74 study, an SPDSS Feasibility Study update, an update on the Three-State Agreement process, on update on the CWCB South Platte Sustainability Study, a report on the impacts from the recent fires, current water availability and flow issues, and possible legislation and public testimony. Arkansas River Basin Issnes Water Needs Assessment: Phase 2 of the Water and Storage Needs Assessment being conducted under the leadership ofthe Southeast Water Conservancy District (SEWCD) is nearing completion. The Phase 2 completion report entitled "Preferred Storage Options Plan" [PSOP] was released as a draft in mid-June. The initial option for obtaining additional stored water for municipal suppliers involves authorizing space for storage of non-project water at Pueblo Reservoir, additional storage needs would then be met by enlargements of Pueblo and Turquoise Reservoirs. You received the summary portion of the draft and are invited to submit comments to staff, the SECWCD, or at the upcoming combined assessmentlbasin-planning meeting in Pueblo on August 3. A full presentation on the PSOP is planned for the Board's September meeting in Canon City. . 4 . .