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<br />A funding mechanism for the reimbursement of the Grand Valley Water User's Association <br />worK to operate and maintain the GI/WM improvements has been negotiated, <br /> <br />Since we were anticipating a construction start in FY 1998 design of the different project <br />improvements is being staged, Design of the check structures is essentially complete. <br />Design of the administrative spill pipeline is 100% complete and only conceptual design <br />has been done on the pumping plant. The construction of the checks will take about two <br />years to complete. Consequently, design completion of the pipeline and pumping plant is <br />not crucial to maintaining the construction schedule, <br /> <br />The GVWUA has required that Endangered Species Act Section 7 consultation be <br />completed for the Grand Valley Project before they will permit construction to begin on the <br />system improvements, Section 7 for the Grand Valley Project is included in the is-Mile <br />Intra-Service consultation that the FWS is worKing on. This consultation was scheduled to <br />be complete by the end of CY97, Reclamation will continue completing preconstruction <br />activities but will not be able to proceed with construction, ' <br /> <br />A cooperative agreement for the construction of the GVWM improvements does not <br />appear to be possible under current Federal contracting law, An attempt to provide <br />authorization for Reclamation to enter into a cooperative agreement by some of the <br />program participants was not successful, The proposed long-tenn funding legislation <br />would resolve this problem, but it is uncertain when this will be passed. An alternative <br />funding mechanism has been identified using the National Fish and Wildlife Foundation, A <br />draft contract has been prepared and will be finalized upon the completion of Section 7 <br />consultation on the is-Mile Reach, <br /> <br />VII, Recommendations: Continue all preconstruction activities. Once Section 7 consultation is <br />complete, begin construction. <br /> <br />VIII, Project Status: <br /> <br />See above. <br /> <br />lX, FY 98 Budget <br /> <br />A. Funds Provided: $410,000 <br />B. Funds Expended: $270,052 <br />C, Difference: $139,948 (balance carried over 10 complete FY99 RIP Capital Project <br />program activities) <br />D. Recovery Program funds spent for publication charges: None, <br /> <br />X, Status of Data Submission (Where applicable): NlA <br /> <br />XI. Signed: Bob Nonnan <br />Principal Investigator <br /> <br />i2n/98 <br />Date <br /> <br />Page No, CAP-ii-2 <br />