CWCB Repayment Contract ALP

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be r rbuacted froin the .�43 mullion reimbursement cap before the remainder is distributed
amo sg the sponsors paying the joint reimbursable costs.
3. Quarterly Billing Method: Reclamation has developed it "Cap Conversion
bract r" to be applied to post -1999 actual joint cost expenditures to adjust escrow draws
ill ac'ordance Mill the reinnbw-sernent cup. The current Cop Conversion factor and its
app! i - ation to post-'99 joint cost expenditures are set forth oat Attachment 1 and 4 hereto.
7'he iethodology discussed in this paler, all(] the computed Cap Conversion factor, sire
appli able until the actual joint cost expenditures exceed $346,399,000, (the Loud joint
costs included in the $500,000,000 Project Cost estimate from rule, 2003). Once could
joint ,ost expenditures exceed $316,399,000, an ndjusted Crap Conversion Factor will be
devel ped as discussed in Section C.3.
4. Quarterly billings through December 2004 renceted the allocable percentages
for ea h sponsor as applied to the reimbursable Jostion of the $500 million cost cslinlr►te;.
Asa msult of the passage of the Section 207 language in December 2004, subsequent
quartc rly billings have been ndjusted to reflect the $43 million reimburse.araent ct:p and all
previ 4 payments, Previous p ay,raents in excess of tlic required amount as recalculated
purse. it to Section 207 were applied its credits to future quru-Ierly billings for allocable
rcimb rsable costs, joint and specific, until tlu allocable reirnbarrsable costs, joint and
spceif requir(A additional payments by the sponsors.
C
1. listimate of Inflated Reimbursement Cap. The hiiguagc of Section 2.07 in
effect rrwides that repayment will not be required for $163 inn lionn in cost increases (nand
on the ftcc(s of inflation thereon) included in the $500 million total Project Cost
estima A by Reclamntion in July 2003 based on Jnnunry 2003 price levels. It is
Reclan ation's position that, since the original project costs were subject to inflation, the
$43 rrii lion reimbursement crap is also subject to inflation. A simple ratio and proportion
tnuahod will be used to estimate tine effect of inflation on the reimbursement cap, as set
Forth in Attachment 2.
AttaC
rxpcndi
$500,00
adjusted
the rent
calculate
est i malto
Cap Con
project Cost Projection for Escrow Planning. In order to assist contractors its
overall project costs for escrow planning, a process was presented to the
during pan Augtast 29, 2005 meeting. A synopsis of that process is described in
:nt 3.
Adjustment of Cap Conversion Factor. At such time tas the actual joint cost
arcs exceed $346,399,000, (the estimatul total joint costs included in the
,000 Project Cost estirntate from July 2003), Reclamation will develop an
�ap Conversion Factor to reflect the Inflated Reitnburscrnent Cap. At that time,
ring reimbursable costs to he recovered, due to the effects of inflation, will be
I. Adjustments to the remaining reimbursable costs duc to utflation on the
City ofDaran6o specific costs will be considered in this calculation. A revised
ersinn Factor will be developed as t1 ratio of the calcirlatccl remsrfning