WSP05471

• File Number: 8543.900
• Description: Closed Basin Division - Project Funding
• State: CO
• Basin: Rio Grande
• Water Division: 3
• Date: 5/3/1989
• Title: Agenda Item 8 - May 11-12 1989 - Board Meeting -- Closed Basin Project Cost-Sharing Agreement
• Water Supply Pro - Doc Type: Board Memo

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STATE OF COLORI\DO
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COLORADO WATER CONSERVATION BOARD
Department of Natural Resources
721 State Centennial Building
1313 Sherman Street
Denver, Colorado 80203
Phone: [phone]

Roy Romer
Governor
I. William McDonald
Director
Oavid W. Walker
Deputy Director

M E M 0 RAN DUM

TO: Members. CWCB

FROM: Bill McDonald

DATE: May 3. 1989

SUBJECT: Agenda Item 8. May 11-12, 1989, Board Meeting--
Closed Basin Project Cost-Sharing Agreement

Introduction

The bill providing authority for the Board to cost-share in
the Closed Basin Project (S.B. 85) has been signed into law by
the Governor. Therefore, the Board is now in. position to
execute the necessary agreement with the Bureau of
Reclamation.

Per your directions. I have been negotiating a contract
with Reclamation. I have now reached agreement on a contract,
a copy of which is enclosed.

Discussion

The major provisions of the proposed contract are as
follows:

Art. 3--This provision encumbers and reserves for the
purposes of this agreement the necessary $6 million. This
is standard state contracting procedure. The money will
remain in the Board's construction fund until it is
required to be paid to Reclamation. rather than being
placed in an escrow account.

Art. 4--Cost-sharing from the state is required only for
expenditures over $75 million. This article establishes
the process for determining when $75 million of
expenditures has been reached.

Art. 5--This provision details the means by which
expenditures in excess of $75 million will be accounted
for.

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