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<br />'+.. <br /> <br />".1', r<. '"i n" <br />J'i."! :',. ' ,.;) <br />J "-" ~.> f 'I. ""' <br /> <br />RECOMMENDATIONS <br /> <br />District role <br /> <br />The initial decision to be made by the District's board is what role the District <br />should play in regard to the negotiation and form of interruptible supply contracts <br />involving C-BT water. There are three basic approaches available, each of which is <br />discussed below.6 Two of these would have the District taking a controlling part in <br />developing contract terms, while the third would allow parties interested in entering into <br />interruptible supply agreements to negotiate independently, with the District fixing only <br />minimum terms as needed to protect the interests of the District and Subdistrict. <br /> <br />The three approaches are as follows: <br /> <br />. The District could formulate appropriate contract terms in advance and develop <br />a form contract for use by all parties contracting for interruptible supply as back-up for <br />borrowing by Windy Gap participants. Only price would remain to be determined, and <br />the same price would ultimately apply to all contracts. <br />. The District may choose to assert control over the contracting process by acting <br />as an intermediary between buyers and sellers, with each side operating as a unified <br />group. While the parties would develop contract terms rather than having them imposed <br />by decision of the District, all contracts resulting from the negotiation process would <br />contain uniform terms, including price. . <br />. The District may allow potential buyers and sellers to act independently in <br />negotiating contracts. The District would determine what provisions are necessary to <br />ensure compliance with Project operating requirements and would retain the right to <br />approve or disapprove the resulting agreements based on compliance with those <br />requisites. In this scenario, contracts could vary as to any other terms; contracts would <br />not be uniform and prices could vary. <br /> <br />There are advantages and disadvantages to each option. <br /> <br />District developing standard contract terms in advance <br /> <br />This approach would entail the District board considering input from interested <br />commenters and staff, then applying its own expertise to arrive at standard contract <br />terms that would apply to all contracting parties. This would be followed by a <br />determination of price through a bidding or negotiation process. Ultimately, a uniform <br />price would be paid by all buyers to all sellers under the contracts. <br /> <br />6 There are, of course, possible variations and combinations of these three basic <br />approaches. <br /> <br />17 <br />