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<br />\\ \\ 14 In <br /> <br />handle under current conditions. I seek the Board's guidance in how best to <br />participate in these discussions. As a note, I have also raised these issues with <br />the Action 22 group. <br /> <br />Update-Canon City Annexatio~ The City of Canon City recently approved a <br />municipal annexation of lands that were not previously in the District. Based <br />upon input from the developer they decided not to include the new lands in the <br />Southeastern Colorado Water ConselVancy District boundaries. lNhen the <br />original notice of request for annexation was filed, the District staff contacted the <br />City to brief them on the Bureau of Reclamation's requirements for inclusion of <br />new lands in the District boundaries. Canon City would have been required to <br />pay for and initiate an assessment of cultural resources in the new lands. The <br />City asked the developer what he wanted to do and the developer decided not to <br />include lands within the District. We have sent Canon City a letter explaining the <br />impacts of their decision (see attached June 16th letter from Tom Simpson). We <br />will follow-up with the City and the Bureau in an effort to avoid this from <br />happening in the future. If our municipal entities decide to exclude newly <br />annexed lands from the District boundaries that will impact our ability to meet <br />repayment in the future. In addition. if they make such a decision because of the <br />burden of complying with Bureau requirements, we will continue to lose the <br />benefits of growth, which impacts Project repayment, because of these <br />regulations. I will investigate the cause of the Canon City decision and report <br />back to the Board as soon as possible. <br /> <br />PendinglOngoing ltems- <br />1. Upper Basin Channel Restoration Study-Fry-Ark Project Operations <br />2. US Corps of Engineers Pueblo River Channel/Fishery Study <br />3. USBR Policy on the Use of Excess Capacity <br />4. "Agency Needs Assessment" <br />5. Upper Arkansas Headwaters Recreation Area River Management Plan <br /> <br />Legislative Matters <br /> <br />State Legislative Issues- There will not be a water policy interim committee <br />during the legislature's summer break. The special "water committee" on Denver <br />Basin and South Platte ESA issues will continue to study their specific issues. <br />There will be an interim committee on "Growth and Development." I'm hopeful <br />water issues will be discussed in that forum. <br /> <br />Federal Legislative Issues- <br /> <br />Warren Act Amendments- Attached for your review is a "talking points" <br />paper on the purpose and meaning of the proposed Warren Act amendments. <br />As I noted last month there are some issues internal to Colorado that need to be <br />addressed as we work on Warren Act legislation. I will be coordinating a meeting <br />5 <br />