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<br /> <br />FINDINGS AND RECOMMENDATIONS <br /> <br />BONNEVILLE UNIT REPAYMENT CONTRACT <br /> <br />The CUWCD contract for repayment of the BU reimbursable construction costs <br />explicitly limits CUWCD's obligation to $156.8 million, notwithstanding the Serv- <br />ice's current estimate that the CUWCD's obligation should be $354-.5 million, or <br />$197.7 million in excess of the ceiling stipulated in the current contract. <br /> <br />At the time the CUWCD and the Service agreed to contract terms in 1965, <br />CUWCD's repayment obligation, based on total reimbursable project costs of $302 <br />million, was established at $131 million. Recognizing the possibility of future price <br /> <br />increases and project changes, the Service agreed that contractually the $131 <br />million could be increased by not more than 20 percent, or to a maximum of $156.3 <br /> <br />million. Remaining reimbursable costs at that time were scheduled to be repaid <br /> <br />from BU and CRSP power revenues. <br /> <br />The language included in the contract relative to repayment is as follows: <br /> <br />"6.(a) The District agrees to pay the United States the project repayment <br />obligation of not to exceed $130,673,000 divided into (1) an irrigation repayment <br />obligation of $16,1100,000, (2) an ad valorem tax revenue obligation of not less than <br />$38,005,000 and (3) a municipal and industrial repayment obligation of $76,263,000, <br />plus interest on the unpaid municipal and industrial repayment obligation as herein- <br />aiter provided, and of said obligation of $76,268,QOO plus interest, the sum of not <br />less than $4-7,000,000 (for both principal and interest) shall be collected and paid <br />from ad valorem taxes. The District's repayment obligation and the aforesaid <br />divisions thereof are based on the Definite Plan Report dated August 1964-, and any <br />notice issued with respect thereto is subject to adjustments depending on the <br />facilities finally constructed and on the allocation of construction costs and allot- <br />ments of the project water to irrigation and municipal and industrial uses which <br />will be made by the Secretary In accordance with Reclamation Law. Provided, <br />however, the District's re a ment obli "adon of $130 673,QOO ma be increased not <br />to exceed twent 20 ercent for ossible increases resultin from any or all of the <br />fo owln: 1 rice increases for construction of ro' ect works, 2 enlar ement of <br />ro'ect works, and 3 increases in allotments of irri ation and municipal and <br />industrial water Includin1( adjustments pursuant to Article 9 d hereof..." Emphasis <br />added.) . <br /> <br />12 <br />