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<br />001960 <br /> <br />5. Standard Articles: The proposed contracts will be consistent with all applicable Federal law, <br />rules, and regulations, and will include all applicable standard articles. The District is <br />voluntarily preparing a water conservation plan, and Reclamation has offered to provide <br />assistance to them in this effort. However, section 1C(1) of Reclamation Manual Directives and <br />Standards (WTR 01-01) provides an exception from the requirement to prepare a water <br />conservation plan for districts with contracts that are not developed pursuant to Federal <br />Reclamation law, such as the WCUA. Therefore, the proposed contracts will not require a water <br />conservation plan. <br /> <br />6. Payment for Deliverv of Non-Project Water: Section1(3) of Public Law,J06-549 states: <br /> <br />In fixing the charges under a contract under paragraph (1), the Secretary shall take into <br />consideration - <br />(A) the cost of construction and maintenance of the projef;t, by which the non-project <br />water is to be diverted, impounded, stored, or carried;llnd <br />(B) the canal by which the water is to be earned. <br /> <br />Because Public Law 106-549 does not specify exactly how to determine the water charges, <br />Reclamation propose to charge rates similar to rates that aie'charged for Warren Act contracts on <br />other projects in our region. Contractors Will be required to pay a water rate computed using a <br />construction cost component computing carriage charges as specified inJhe Regional Director's <br />October 24,1983, memorandum (copy attached). The memorandumprovides for an incremental <br />fee to be charged for the use of project facilities that reasonably re:Q.ects an appropriate share of <br />the cost to the Federal government. The procedure uses the facility costs, the facility's capacity, <br />and the length of the irrig~tiohcseason to determine the carri'lge rate. <br /> <br />7, Responsibility for O&M: The District will continue to be responsible for O&M of project <br />facilities. Public Law 106-549 allpwsthe District to require contractors to pay for any increased <br />O&M costs inciclent to carriag!?pf nOll-project water under these contracts. Additionally, the <br />contractors.willberesponsibletopay for andperform O&M on their private facilities. <br /> <br />8. Disposition of Reventies:PublicLaw 106-549 does not specify the disposition of revenues <br />generated:fi'o~ the resulting,<;ontracts. Section 8 of the WCUA provides for the following <br />disposition'OIr~yenues : <br /> <br />All paymiHltsmade tothe United States under repayment contracts on account of <br />reimbursable cOnstruction costs, including penalties collected for delinquencies in such <br />payments, and all other receipts from project operations pursuant to section 4 and 9 shall <br />be covered into the Treasury to the credit of miscellaneous receipts. <br /> <br />Because Public Law 106-549 is an amendment to the WCUA, Reclamation intend to credit all <br />Federal revenues generated from carriage contracts under Public Law 106-549 according to the <br />above provision of the WCUA. <br /> <br />9 <br />