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<br />. <br /> <br />. <br /> <br />o <br /> <br />~.J <br /> <br />.... <br /> <br />Agenda Item 18 <br />September 20, 1989 <br /> <br />c <br /> <br />to proceed with condemnation. This will throw the issue of the <br />nature and value of TNC's reverter interest into the jUdicial <br />arena. Under these circumstances, the approach to contracting <br />with Reclamation which was contemplated at the May Board <br />meeting is no longer useful. <br /> <br />A second change of circumstances since May pertains to the <br />fact that Reclamation has indicated that it may require the <br />execution of a cost-sharing agreement for the $5.6 million as a <br />"construction prerequisite" to letting the first contract for <br />construction on the Ridges Basin Dam. Should Reclamation <br />adhere to this position, it has the potential to slow the <br />construction schedule for the project. <br /> <br />Under the circumstances. I now propose that I be authorized <br />to enter into negotiations with Reclamation to consummate a <br />single contract for the entire $5.6 million. The major issue <br />which needs to be addressed in such negotiations pertains to <br />when this $5.6 million is to be made available. Ival Goslin <br />and I believe that the language in the June, 1986. Binding <br />Cost-Sharing Agreement was not intended to require money until <br />physical construction activities on Ridges Basin Dam were <br />commenced. However. at least some people in Reclamation <br />believe that "construction" on Ridges Basin Dam has already <br />started with the collection of design data and the initiation <br />of drawings and specifications. <br /> <br />In an effort to reach an accomodation on this issue, I <br />suggest that the Board authorize me to commence negotiations <br />based on the following: <br /> <br />(1) A contract would be entered into during federal FY <br />1990 which would encumber the entire $5.6 million, <br />thereby insuring Reclamation that the money would be <br />available. <br /> <br />(2) Modest payments would be made by the State to <br />Reclamation commencing in FY 1991 in order to provide <br />cost-sharing on the activities which precede the start <br />of actual physical construction on the Ridges Basin <br />Dam. <br /> <br />(3) When physical construction activities commenced, <br />payments toward each year's construction costs would <br />be made by the Board in the same ratio as the Board's <br />total contribution bears to the projected total <br />construction cost of the Ridges Basin Dam. The <br />scheduling of Board payments over more than one year <br /> <br />-2- <br />