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<br />001156 <br /> <br />. <br /> <br />1. The Bureau must continue to chanae the wav it is manaaina the <br />Animas La Plata Proiect. <br /> <br />First and foremost, the Bureau must staff the Project with people who <br />have the construction experience and project management judgment necessary <br />to complete the Project. The Bureau has made these modifications for the <br />. construction phase of the project, and it is a welcome change. <br /> <br />Second, the Project Construction Coordination Committee meetings must <br />comply with contractual obligations. This is a very challenging but necessary <br />task, and we appreciate the Bureau's efforts to change the structure and content <br />of the meetings. Although the consultation function of the committee is difficult, it <br />is necessary because it is mandated in Article 4(a) of our contract with the <br />Bureau. Incorporating consultation with us into their process has been difficult <br />for Bureau officials, and we appreciate the structural changes that have been <br />made. However, a full, satisfactory consultation process has not yet been put <br />into place. <br /> <br />2. Issues reaardina the cost of the Proiect and the SJWC's' <br />reimbursement obliaations must be resolved. <br /> <br />. <br /> <br />Bureau officials have told us about their internal efforts to allocate costs in <br />a way that is equitable. However, although we appreciate what the Bureau has <br />told . us, we need to review the Bureau's final cost allocations in order to <br />determine whether they are equitable to the San Juan Water Commission. In <br />addition, we believe some of the measures listed below must be implemented to <br />ensure that the increased construction costs are fairly allocated. It is simply too <br />early to tell whether the Bureau will incorporate these measures, but we do not <br />doubt the sincerity of the people we have worked with most closely -- John Keys, <br />Bill Rinne and Rick Gold. <br /> <br />First, the Bureau must develop a cost-tracking procedure to prevent the <br />underestimates and mistakes that have occurred from happening again. Such a <br />process is under development, and time will tell whether it is successful. <br /> <br />Second, Bureau staff (and staff costs) must be reviewed and reduced. As <br />part of this evaluation, Bureau and tribal staffing must be visible to the project <br />sponsors and to the public. In fact, the UMUT's contract with the Bureau <br />addresses the need to examine Bureau staffing directly, but we understand that <br />this information has not been provided to the Tribe. The Master Contract for <br />General Provisions for Self-Determination Construction Contracts for the ALP <br />, <br />October 22, 2002, states: <br /> <br />. <br /> <br />"M. Design <br />Expenditures. <br /> <br />and Construction Management <br />In order to reduce project costs <br /> <br />SJWC Testimony <br /> <br />Page 3 of 5 <br />