BOARD00035

• Board Meeting Date: 6/3/1982
• Description: CWCB Meeting
• Board Meetings - Doc Type: Meeting

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first stage of construction were completed. In turn, the
invitation for bids on the first stage was not issued until
August, 1979. Further delay was encountered when the Bureau
obtained an ex tent ion of time for the awarding of the contract
from the bidders. As a consequence, a construction contract was
not awarded to the successful bidder until December, 1979, nearly
three years after the repayment contract was negotiated and
executed. .

Once initiated, construction on the first stage proceeded on
schedule. However, the Bureau has lost the better part of
another year in initiating construction on stage two due to
delays incurred in 1981 in the preparation of final designs and
specifications for the balance of the project.

During all of these delays, none of which were caused by the
Tri-County Water Conservancy District, design changes and
inflation have increased the cost of construction beyond that
which could have been reasonably foreseen at the time the
repayment contract was approved in late 1976. Tb make matters
worse, the contractor on stage one has submitted claims totalling
nearly $17 million against a contract which in the first place
was for only $15 million. While negotiations between the Bureau
and the contractor will undoubtedly lead to a substantial
reduction in the $17 million of Claims, one cannot help but
observe that Tri-County is a victim of problems created by others
which are entirely beyond its control.

The repayment contract executed by Tri-County provides, in
Article 6. c., that:

The Contractor hereby agrees to pay all
project costs allocated to M&I use, including
interest during construction, but not more
than $38 million. Said obligation limit is
the current estimated project cost allocated
to.M&I use, based on January 1, 1976, price
levels and fiscal year 1976 interest rates
increased to cover possible changes in the
cost of construction, increases in the
applicable rate of interest, changes in
project works, or changes in the allocation
of project water. The estimated cost based
on January 1976 price levels and fiscal year
1976 interest rates is $27,966,000. The
allocated M&I repayment obligation is based
on furnishing 28,100 acre-feet annually of
pro; ect M&I water and is to be paid wi th
revenues received from project M&I water
users and in accordance with sub-article d.
hereof. . . .

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