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Final PSOP I mplementation Committee Report Page 19 of 23 water sales 2r::a~furage contracts. In addition, the District realizes the need to begin a fund to help pay for major repair items on the Project that are looming on the horizon (O&M Reserve Fund), as well as to study taking over O&M on part of the Project. To this end, the Enterprise will combine all three of these expenses in one surcharge. . The Water Activities Fund surcharge will begin in 2002 and be charged on all water sales and storage contracts. Annual payments of $150,000 for the Safety of Dams repairs will be made from this fund. The remaining collections will be compiled to establish a sinking fund for the purpose of establishing the O&M Reserve Fund and funding the possible transfer of O&M responsibility to the District/Enterprise. Following is the proposed rate schedule for the Water Activities Fund. "---. -,-, . __. _..._u_..__._.. Proposed Rates 2002 In District Out of District Ag M&I I Project Water I $1.25 $ 2.00 Carryover Water $ 2.25 If & When $1.00 I $ 6.00 I IWinter Water II $ 0.25 I I Return Flows II $ 0.50 I . Section 10 - Legislation for Implementation of the PSOP Federal legislation is needed to begin the implementation process for the PSOP. The Implementation Committee and Enterprise staff have developed proposed legislation for introduction during the 2001 session of Congress. The legislation would grant Reclamation the authority to execute re-operations contracts consistent with the PSOP. The legislation would also direct Reclamation to do feasibility studies of the enlargement of Pueblo Reservoir and Turquoise Reservoir. These studies will be funded by the PSOP participants. through the Enterprise. The legislation requires that the District agree to the scope-of-work for these studies. Final authorization of the enlargement projects will take separate federal legislation. Efforts are underway to secure support from throughout the state for the proposed legislation. Interests on the west-slope and northern Colorado have indicated their support for the legislation. Click here for a copy of the proposed legislatLpo. Section 11 - Recommendations Regarding Aurora's Participation in the PSOP . The Implementation Committee discussed the possibility of allowing the City of Aurora to participate in the development of the proposed enlargement projects. The Committee felt that the PSOP process should stay focused on meeting the needs of water users within the Southeastern District. Until in-District water users have expressed their participation in the implementation of the PSOP via MOA's, the issue of Aurora's participation should be put on hold. 3/20/02