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002602 . . . EXECUTIVE DIRECTOR'S MONTHLY REPORT TO THE COLORADO RIVER BOARD OF CALIFORNIA June 8. 2004 AGENCY MANAGERS MEETING The Agency Managers met on May 25, 2004, at the offices of the San Diego County Water Authority in San Diego, California. The topics discussed during the meeting were: I) the status of the Lower Colorado River Multi-Species Conservation Program (LCR MSCP) and the recommended approach for completing the program, 2) the formula for funding the Colorado River Board and how it could be revised, 3) the upcoming briefing for the Resources Agency, and 4) the drought management discussions among representatives from the Colorado River Basin states and the U.S. Bureau of Reclamation (Reclamation). During the meeting, the Letter of Clarification regarding the non-federal parties submittal of their application to the U.S. Fish and Wildlife Service (USFWS) for incidental take authorization was discussed. Based on initial comments received from representatives from the Department of the Interior, it has been determined that it would be desirable to send a letter clarifying the non-federal parties commitment to fund and implement the 50-year program. Along with this commitment is a recognition that currently there are a number of outstanding issues that must be resolved. Based upon those discussions and discussions with the other non-federal parties to the application to the USFWS, a letter was prepared and sent to the USFWS clarifying the non-federal parties commitment to implement the LCR MSCP. The desire to revise the existing funding formula for the six agencies funding support of the Colorado River Board's budget was again discussed. Although progress on obtaining an acceptable funding formula was made, agreement on a recommended formula was not reached. There will need to be further discussions among the agency managers before a recommended formula can be taken to the Six Agency Committee for its consideration. ADMINISTRATION Approval of Fiscal Year 2004-2005 Budget Both the Senate Subcommittee No. 2 on Resources, Environmental Protection, and Judiciary and the Assembly Resources Subcommittee No.3 on Resources approved the Board's budget for fiscal year 2004-2005, as proposed in the Governor's Budget. For FY 2004-05 the Board will not receive any State funds; the budget of $1,170,000 is1 totally funded by reimbursements from the agencies on the Colorado River Board. -!