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<br />o State will need legislative authorization for contacting and <br />spending purposes <br />o PDT RECOMMENDATION - Corps is in agreement <br />with this approach. The Corps will contract with CWCB <br />who will subcontract with the water users. There would be <br />no need for Corps to be party to the sub-agreements <br />between CWCB and the individual Water Users. No further <br />Fed authorizations and no Fed implementation <br />appropriations will be needed. Legislative authorization <br />cited will be at the state level. <br /> <br />. Type and structure of the storage space contract <br />o Main contract with multiple attachments? <br />o Mitigation requirements and costs spelled out in the <br />attachment( s)? <br />o When will funding be needed? <br />o How will cost of storage be calculated (legislation pending <br />that could reduce cost to $0; or charge for average yield <br />rather than the fu1l20,600?) <br />o Who is on the vertical team to assist with storage costs and <br />contracting (John Micik, Steve Cone, others from Omaha?) <br />o PDT RECOMMENDATION - Two options - 1) Prior to <br />the Water Storage Agreement (WSA)PCA, the sponsor <br />would sign a Design Agreement to fund the development of <br />very specific mitigation plans and then a WSA/PCA can be <br />signed to proceed with construction of those plans; 2) a <br />combined design agreement/WSA/PCA could be signed <br />that would spell out responsibilities prior to and after <br />reallocation. With either option, the Sponsor's Cost of <br />Storage would be paid, and/or financed over a period up to <br />30-years, beginning 30 days after water storage is available <br />for impoundment. The sponsor would also pay a share of <br />OMRR&R costs of the project based on the allocation of <br />storage space for WS. Sponsors costs for mitigation would <br />be incurred during the period of construction. The <br />legislation that might reduce the sponsor's updated cost of <br />storage to $0 has been dropped from the current WRDA. <br />However, the Corps expects to recommend to ASA(CW) <br />that updated cost of storage costs be adjusted based on the <br />percent of time the reservoir can provide water, and would <br />be willing to consider other options that may be proposed <br />by the sponsor. A formal Vertical Team would be set up <br />to work through specific issues related to the water supply <br />contract, including where to include specific operational <br />requirements. <br /> <br />3 <br />