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<br />~ <br /> <br />ER 1105-2-100 <br />28 Dee 90 <br /> <br />__ Assistant Secretary of the Army (Civil Works) or his duly authorized representa- <br />tive. A ten year interest free period for future use water supply shall be <br />available for authorized M&I storage in pr<;>jects completed or under construction <br />as of November 17, 1986. <br /> <br />d. Water Withdrawal Contracts. The Corps of Engineers is to refrain from <br />using Section 501 of the Independent Offices Appropriations Act of 1952 (31 U.S.C <br />9701) to obtain reimbursement for water supply withdrawals. Existing contracts <br />under this authority should be allowed to expire under the t,erms of the contract. <br />These contracts are not to be extended. <br /> <br />e. Annual Oneration and Maintenance Expense. The non-Federal sponsor is <br />responsible for all water supply costs alloeated to operation and maintenance <br />expenses. These costs must be paid yearly and should be paid in advance based <br />on an estimated expenditure. Appropriate adjustment will be made at the end of <br />the year. <br /> <br />f. Reuavment Period for Maior Reulacement and Maior Rehabilitation Costs. <br />Costs allocated to water supply which are associated with major replacement and <br />major rehabilitation are to be paid either during eonstruction or in lump sum <br />upon completion of construction. The non-Federal sponsor should be encouraged <br />to establish a sinking fund in order to cover these costs should ,they occur. <br /> <br />g. New Construction Starts. When water supply is included as a purpose <br />in a project being considered as ,a new construction start, or unstarted projects <br />previously funded' for construction, resumptions. and separable elements of <br />ongoing projects, cost sharing and financing will be based on construction new <br />start guidance as provided in the most current HQUSACE, (CECW-RN), engineer <br />circular on new construction starts. Authorized but not construeted single <br />purpose M&I projects will not be proposed for construction. <br /> <br />4-32. Suecial Considerations. <br /> <br />a. Interim Use of Water Suuuly for IrriEation. Section 931, WRDA '86 <br />provides that for any lake project constructed and operated by the Corps of <br />Engineers, the Secretary of. the Army is authorized to allocate water which was <br />allocated in the project for M&I water supply, and which is not under contract, <br />for the interim use for irrigation purposes.' In accordance with Section <br />103(c)(3), of the Water Resources. Development Act of 1986, the cost to the <br />non-Federal sponsor shall be 35 percent of the original project investment cost <br />allocated to M&I wa,ter_ supply. The period of analysis for computing.. the <br />annualized payments shall be 30 years. The non-Federal sponsor shall 'also be <br />responsible for 100 percent of the operation and maintenance expense, major. <br />replacement cost, and major rehabilitation cost allocated to the storage space <br />being placed under contract. <br /> <br />(1) Investment Cost Comtlutation. The investment cost for this interim use <br />irrigation storage/water is calculated by multiplying 0.35 (35 percent) by the <br />percentage of the interim use storage to the total M&I water supply storage (as <br /> <br />4-51 <br /> <br />f.<~:~!.~~~ <br />'\ <br />