BOARD01934

• Board Meeting Date: 11/25/2002
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

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Arkansas Valley Conduit Study Update: The feasibility study for the Arkansas Valley Conduit is
nearing completion and a draft final report is being prepared, The draft Feasibility Study conclusions
and recommendations were recently presented at a series of three public meetings in Pueblo (Oct.
23), La Junta (Oct. 29) and Lamar (Oct. 30).

The reconnaissance-level evaluations performed in Phase 1 did not identify any apparent technical or
environmental fatal flaws that would prohibit the implementation of the pipeline,

Key conclusions of the Phase 2 feasibility-level study are:

1) The pipeline should transport "raw" water, as opposed to treated water, to local water users
for treatment;

2) A gravity aligmnent (no pumping required) is preferred, following the Bessemer Ditch
through Pueblo, paralleling the south side of Hwy, 50 to Fowler, crossing to the north side of
Hwy. 50 and the Arkansas River, and following an easterly aligmnent to the City of Lamar
($175 million construction cost);

3) The estimated net present value of the pipeline project, induding construction, and 0 & M
costs is $235 million. The net present value ofthe no-action alternative is $187 million. The
no-action costs are likely to escalate because of new drinking water regulations and
considering the overall health and standard ofliving benefits from a reliable high quality
surface water supply;

4) The financing capability of the counties, cities, and water agencies in the project area is
approximately 25% of the project cost. (It is possible that CWCB could be approached for as
much as a $25 million loan over a several year period); and,

5) The two likely institutional frameworks to construct, operate and maintain the pipe line are
either a Water Authority or a Water Conservancy District.

Senator Allard and Representative Schaeffer have both introduced bills to arnend the original
1962 Fry-Ark legislation to authorize federal funding for 75 percent of the pipeline cost.

Colorado River Basin Issues

Eagle River NRD funding: We have been working with the Town of Minturn on a funding request
from the Eagle Mine Natural Resource Damage Fund. Minturn's proposal seeks to place a deed
restriction on 500 acre-feet of Eagle Park Reservoir water so that the water would have to be used in
the Eagle River watershed downstream of Dowds Junction, The proposal contemplates donating this
interest in water to the Board for protection as an instream flow between the outlet ofthe Eagle Park
Reservoir and Dowds Junction,

Griles Announces Water Source for San Luis Rey Tribes: On Oct. 15 Deputy Secretary of the
Interior Steven Griles joined representatives of the Metropolitan Water District of Southern
California, the San Luis Rey Indian Water Authority, the City ofEscondido and the Vista Irrigation
District in signing Principles of Agreement for the San Luis Rey Indian Water Settlement Act.

Under the California 4.4 plan, the Secretary of the Interior is working with the Tribes, the State of
California and local water districts to execute a number of required agreements. The agreement to
implement the San Luis Rey Water Settlement Act, and the securing of water for these Tribes, is one
of those important agreements.

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