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RECEIVED H.B 112.002 coloradowa~~~Oc 2002-General Manager's Report December 12, 2001 through January 17, 2002--Update -----.------.-------------------------------------------------------.-.--------------------- Water Activitv Enterprise ReQQI! Preferred Storage Options Plan Implementation Progress Report Enlargement MOA- The City of La Junta will likely join the group of water users that have committed to participate in the implementation phase of the development of the PSOP. They've indicated that they will sign a MOA for 1,000 acre-feet in the enlargement project, as well as 1,000 acre-feet in re- operations storage. They are obviously late with their request to sign a MOA, but I don't see a problem in accepting their participation (given the other delays). Update: Signed MOAs are on the way from the City of La Junta. I recommend that the Board authorize the execution of these MOAs. PSOP Implementation Legislation- We are still planning to start the legislative process on H.R. 1714 the first part of February, I'm planning to go back to Washington, D.C. the first or second week of February to work out the final details before the actual hearing. Then I'll return to D.C. for the hearing later in the month. I have a meeting scheduled with Senator Allard for January 18 in Pueblo. At that meeting I'll update him on our progress in working through local issues related to the PSOP and then ask him to be the Senate sponsor. PSOP Water Rights Filings- We are very near settling our differences with the Board of Water Works and Colorado Springs Utilities on the Turquoise Reservoir enlargement water right. We're putting the finishing touches on a stipulation and agreement (see attached) that would place reasonable limits on our exchange operations and storage of Project water return flows, accruing from deliveries above Pueblo, into Turquoise Reservoir-Project space and/or enlarged capacity. We will discuss the details of the agreement with the Board at our January 17 Board meeting, Update: Attached for your consideration is a stipulation and agreement concerning the exchange and storage of return flows from above Pueblo Reservoir. The issues with the City of Pueblo (the City) get more complicated all the time. We have had three negotiation sessions with attorneys representing the City of Pueblo, and we're getting closer to an agreement. However, the City continues to push for flow limits at Moffat Street that would force water users to forgo water storage opportunities. The PSOP participants have offered to make the 100 cfs target flow below Pueblo Dam a guaranteed limit (see attached Counter Proposal w/ notes), whereby they would agree to curtail exchanges at times when flows on the river were at or below the 100 cfs limit. The City may still want a 95 cfs limit at Moffat. 1