Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />ro <br />00 Agenda Item 8 <br />p- May 3. 1989 <br />\--1 <br />~< ,") <br />,~ Art. 6(a) and (b)--Reclamation has agreed that the state's <br />first payment will not be made until the award of a <br />contract for construction of the laterals in stage 5 of the <br />project. I sought such a provision to protect against the <br />termination of the project at the conclusion of stage 4. <br />When this provision is coupled with the affirmative <br />obligation in Art. 8 that "the United States shall request <br />and seek such appropriations...as will enable completion of <br />the entire project," I believe that the state's interests <br />are well protected. <br /> <br />Art. 6(c)--After making the one time payment for which Art. <br />6(b) calls. the state shall make quarterly payments <br />thereafter based on the estimated costs to be incurred in <br />the upcoming quarter. Subsequent quarterly payments will <br />be credited or debited to reflect over or under payment by <br />the state for a previous quarter relative to costs actually <br />incurred. <br /> <br />Art. 7--Reclamation has agreed to a 20 percent limitation <br />on administrative overhead expenses. This is, to my <br />knowledge. the smallest percentage overhead limitation to <br />which Reclamation has ever agreed. <br /> <br />Recommendation <br /> <br />I recommend that the Board authorize me to execute the <br />enclosed cost-sharing agreement. <br /> <br />JWM/gl <br />Enclosure: <br />cc: Ralph <br /> <br />as stated <br />Curtis (w/enc.) <br /> <br />-2- <br />