Laserfiche WebLink
The payment rate for municipal water will be reviewed and adjusted annually in accordance with <br />the Debt Servicing Methodology used for the Colorado River Storage Project. An adjustable <br />charge for operation and maintenance (O &M) expenses, currently at a rate of $1 per acre -foot, <br />will be added annually to the municipal rate. The 2007 Colorado River Storage Project municipal <br />water rate has been set at $74.72 per acre -foot plus $1.00 per acre -foot for O &M expenses. <br />(b) The first annual payment in the amount of $378.60 for 5.0 acre -feet of water shall be <br />made by the Contractor upon execution of the contract. <br />(c) For each annual payment thereafter, the United States will bill the Contractor and the <br />Contractor agrees to pay for 5.0 acre -feet at the current rate charged for such water. Payments <br />shall be made annually by February 1. <br />(d) All payments from the Contractor to the United States under this contract shall be by <br />the medium requested by the United States on or before the date payment is due. The required <br />method of payment may include checks, wire transfers, or other types of payment specified by <br />the United States. <br />(e) Payment received by the United States for the sale of water under this contract shall be <br />credited pursuant to Section 5 of the Colorado River Storage Project Act. <br />4. CHARGES FOR DELINQUENT PAYMENTS <br />(a) The Contractor shall be subject to interest, administrative, and penalty charges on <br />delinquent payments. If a payment is not received by the due date, the Contractor shall pay an <br />interest charge on the delinquent payment for each day the payment is delinquent beyond the due <br />date. If a payment becomes 60 days delinquent, in addition to the interest charge, the Contractor <br />shall pay an administrative charge to cover additional costs of billing and processing the <br />delinquent payment. If a payment is delinquent 90 days or more, in addition to the interest and <br />administrative charges, the Contractor shall pay a penalty charge for each day the payment is <br />delinquent beyond the due date, based on the remaining balance of the payment due at the rate of <br />6 percent per year. The Contractor shall also pay any fees incurred for debt collection services <br />associated with a delinquent payment. <br />(b) The interest charge rate shall be the greater of either the rate prescribed quarterly in <br />the Federal Register by the Department of the Treasury for application to overdue payments or <br />the interest rate of 0.5 percent per month. The interest charge rate will be determined as of the <br />due date and remain fixed for the duration of the delinquent period. <br />(c) When a partial payment on a delinquent account is received, the amount received shall <br />be applied first to the penalty charges, second to the administrative charges, third to the accrued <br />interest, and finally to the overdue payment. <br />3 <br />