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<br />A construction headquarters has been established in Fort Morgan and <br />several parcels of land at the damsite have already been purchased. <br />The staff believes that this project should be given the first priority <br />for construction funds. <br /> <br /> <br />The Closed Basin project does not involve any major <br />construction features compared to other projects and does not require a <br />repayment contract. Its construction will alleviate the critical situ- <br />ation now being imposed upon the water users in the San Luis Valley <br />because of the pending case of Texas and New Mexico vs. Colorado. It <br />will be ready for construction during FY 1979. It is the staff recom- <br />mendation that it be given priority number two for construction funds. <br /> <br />While some work remains to be done to complete the definite <br />plan report on the Animas-La Plata project and the repayment contract <br />still must be executed, the project should be in a construction status <br />during FY 1979. The Central Arizona project is moving full speed ahead, <br />despite the language in the Colorado River Basin Project Act which <br />requires that the Animas-La Plata project be completed prior to the <br />first delivery of water from the Central Arizona project. The staff <br />believes that at least a modest construction start on the Animas-La Plata <br />project should be undertaken during the next fiscal year, and therefore <br />recommends construction funds for the project as priority number three. <br /> <br />Both the Fruitland Mesa and Savery-Pot Hook projects are ready <br />for construction and repayment contracts have been executed. However, <br />both projects are handicapped by unfavorable benefit-cost ratios. <br />Unless these ratios can be improved, there appears to be little chance <br />of securing construction funds. There are some possible ways of <br />improving the benefit-cost ratios by revising the definite plan reports. <br />The staff therefore recommends that an attempt be made to secure addi- <br />tional advance planning funds in the amount of $75,000 for each of the <br />two projects as the fourth priority. <br /> <br />In summary, the staff recommendations for additional funds in <br />order of priority are as follows: <br /> <br /> <br />1. Narrows (construction) <br />2. Closed Basin (construction) <br />3. Animas-La Plata (Construction) <br />4. Fruitland Mesa (advance planning) <br />Savery-Pot Hook (advance planning) <br /> <br />TOTAL <br /> <br />$3,500,000 <br />100,000 <br />500,000 <br />75,000 <br />75,000 <br /> <br />$4,250,000 <br /> <br />Memorandum <br /> <br />-3- <br /> <br />March 7, 1978 <br />