HomeMy WebLinkAboutResolution 2007-014 subcontract with central arizona water conservation district
MARANA RESOLUTION NO. 2007-14
RELATING TO WATER; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A
SUBCONTRACT AMONG THE UNITED STATES, THE CENTRAL ARIZONA WATER CON-
SERVATION DISTRICT, AND THE TOWN OF MARANA PROVIDING FOR WATER SER-
VICE.
WHEREAS the Town of Maran a, the United States, and the Central Arizona Water Conser-
vation District desire to execute a subcontract providing for water service to the Town; and
WHEREAS the Mayor and Council of the Town of Marana feel it is in the best interests of
the public to enter into this subcontract.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, that the subcontract among the Town of Marana, the United States, and the
Central Arizona Water Conservation District attached to and incorporated by this reference in this
resolution as Exhibit A is hereby approved, and the Mayor is hereby authorized to execute it for and
on behalf of the Town of Marana.
IT IS FURTHER RESOLVED that the Town's Manager and staff are hereby directed and au-
thorized to undertake all other and further tasks required or beneficial to carry out the terms, obliga-
tions, and objectives of the subcontract.
ATTEST:
PASSED and ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this
6th day of February, 2007. ~UU'.
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Mayor Ed Honea
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FJC'cds 1/8/07
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UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
SUBCONTRACT AMONG THE UNITED STATES,
THE CENTRAL ARIZONA WATER CONSERVATION DISTRICT,
AND THE TOWN OF MARANA
PROVIDING FOR WATER SERVICE
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CENTRAL ARIZONA PROJECT
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1.
PREAMBLE:
THIS SUBCONTRACT, made this _ day of
,200_,
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13 in pursuance generally of the Act of June 17, 1902 (32 Stat. 388), and acts amendatory
14 thereof or supplementary thereto, including but not limited to the Boulder Canyon Project
15 Act of December 21, 1928 (45 Stat. 1057), as amended, the Reclamation Project Act of
16 August 4, 1939 (53 Stat. 1187), as amended, the Reclamation Reform Act of October
17 12, 1982 (96 Stat. 1263), and particularly the Colorado River Basin Project Act of
18 September 30, 1968 (82 Stat. 885), as amended, and the Arizona Water Settlements Act
19 (118 Stat. 3478), all collectively hereinafter referred to as the "Federal Reclamation
20 Laws," among the UNITED STATES OF AMERICA, hereinafter referred to as the
21 "United States" acting through the Secretary of the Interior, the CENTRAL ARIZONA
22 WATER CONSERVATION DISTRICT, hereinafter referred to as the "Contractor," a
23 water conservation district organized under the laws of Arizona, with its principal place of
24 business in Phoenix, Arizona, and the TOWN OF MARANA, hereinafter referred to as
25 the "Subcontractor," with its principal place of business in Marana, Arizona;
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2.
WITNESSETH, THAT:
EXPLANATORY RECITALS:
WHEREAS, the Colorado River Basin Project Act provides, among other
things, that for the purposes of furnishing irrigation and municipal and industrial water
supplies to water deficient areas of Arizona and western New Mexico through direct
diversion or exchange of water, control of floods, conservation and development of fish
and wildlife resources, enhancement of recreation opportunities, and for other purposes,
the Secretary of the Interior shall construct, operate, and maintain the Central Arizona
Project; and
WHEREAS, pursuant to the provisions of Arizona Revised Statutes 99 48-
3701, et seq., the Contractor has been organized with the power to enter into a contract
or contracts with the Secretary of the Interior to accomplish the purposes of Arizona
Revised Statutes, 9948-3701, et seq.; and
WHEREAS, pursuant to Section 304(b)(1) of the Colorado River Basin
Project Act, the Secretary of the Interior has determined that it is necessary to effect
repayment of the cost of constructing the Central Arizona Project pursuant to a master
contract and that the United States, together with the Contractor, shall be a party to
contracts that are in conformity with and subsidiary to the master contract; and
WHEREAS, the United States and the Contractor entered into Contract
No. 14-06-W-245, Amendment No.1, dated December 1, 1988, hereinafter referred to
as the "Repayment Contract," a copy of which is attached hereto as Exhibit "A" and by
this reference made a part hereof, whereby the Contractor agrees to repay to the United
States the reimbursable costs of the Central Arizona Project allocated to the Contractor;
and
WHEREAS, the Subcontractor is in need of a water supply and desires to
subcontract with the United States and the Contractor for water service from water
supplies available under the Central Arizona Project; and
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WHEREAS, upon completion of the Central Arizona Project, water shall be
available for delivery to the Subcontractor;
NOW THEREFORE, in consideration of the mutual and dependent
covenants herein contained, it is agreed as follows:
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3.
DEFINITIONS:
Definitions included in the Repayment Contract are applicable to this
subcontract; provided, however, that the terms "Agricultural Water" or "Irrigation Water"
shall mean water used for the purposes defined in the Repayment Contract on tracts of
land operated in units of more than 5 acres. The first letters of terms so defined are
capitalized herein. As heretofore indicated, a copy of the Repayment Contract is
attached as Exhibit "A." In addition, the following definitions shall apply to this
subcontract:
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(a) "Available CAP Supply" shall mean for any given Year all Fourth
Priority Water available for delivery through the Central Arizona Project, water available
from CAP dams and reservoirs other than Modified Roosevelt Dam, and return flows
captured by the Secretary for CAP use.
(b) "Fourth Priority Water" shall mean Colorado River water available
for delivery within the State of Arizona for satisfaction of entitlements: (1) pursuant to
contracts, Secretarial reservations, perfected rights, and other arrangements between
the United States and water users in the State entered into or established subsequent to
September 30, 1968, for use on Federal, State, or privately owned lands in the State (for
a total quantity not to exceed 164,652 acre-feet of diversions annually); and (2), after
first providing for the delivery of water under 43 U.S.C. S1524(e), pursuant to the
Repayment Contract for the delivery of Colorado River water for the CAP including use
of Colorado River water on Indian lands.
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4. DELIVERY OF WATER:
4.1 ObliQations of the United States. Subject to the terms, conditions,
and provisions set forth herein and in the Repayment Contract, during such periods as it
operates and maintains the Project Works, the United States shall deliver Project Water
for M&I use by the Subcontractor. The United States shall use all reasonable diligence
to make available to the Subcontractor the quantity of Project Water specified in the
schedule submitted by the Subcontractor in accordance with Article 4.4. After transfer of
OM&R to the Operating Agency, the United States shall make deliveries of Project Water
to the Operating Agency which shall make subsequent delivery to the Subcontractor as
provided herein.
4.2 Term of Subcontract. This subcontract shall become effective upon
the later of: (i) the date on which it is confirmed as provided for in Article 6.12; (ii) the
date on which the Secretary of the Interior publishes in the Federal Register the
statement of findings described in section 207(c)(1) of the Arizona Water Settlements
Act, 118 Stat. 3478; and (iii) the date on which the Subcontractor has paid or provided
for payment of past M&I water service capital charges as required by the Contractor.
This subcontract shall be for permanent service as that term is used in Section 5 of the
Boulder Canyon Project Act of 1928, 43 U.S.C. S617d. Project Water shall be delivered
under the terms of this subcontract for a period of 100 years beginning January 1 of the
Year following that in which the subcontract becomes effective; provided, that this
subcontract may be renewed upon written request by the Subcontractor upon terms and
conditions of renewal to be agreed upon not later than 1 year prior to the expiration of
this subcontract; and provided, further, that such terms and conditions shall be
consistent with Article 9.9 of the Repayment Contract.
* * * *
* * * *
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4.3 Conditions Relatinq to Deliverv and Use. Delivery and use of water
under this subcontract is conditioned on the following, and the Subcontractor hereby
agrees that:
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(a) All uses of Project Water and Return Flow shall be consistent
with Arizona water law unless such law is inconsistent with the Congressional directives
applicable to the Central Arizona Project.
(b) The system or systems through which water for Agricultural,
M&I (including underground storage), and Miscellaneous purposes is conveyed after
delivery to the Subcontractor shall consist of pipelines, canals, distribution systems, or
other conduits provided and maintained with linings adequate in the Contracting Officer's
judgment to prevent excessive conveyance losses.
(c) The Subcontractor shall not pump, or within its legal
authority, permit others to pump ground water from within the exterior boundaries of the
Subcontractor's service area, which has been delineated on a map filed with the Con-
tractor and approved by the Contractor and the Contracting Officer, for use outside of
said service area unless such pumping is permitted under Title 45, Chapter 2, Arizona
Revised Statutes, as it may be amended from time to time, and the Contracting Officer,
the Contractor, and the Subcontractor shall agree, or shall have previously agreed, that
a surplus of ground water exists and drainage is or was required; provided, however,
that such pumping may be approved by the Contracting Officer and the Contractor, and
approval shall not be unreasonably withheld, if such pumping is in accord with the Basin
Project Act and upon submittal by the Subcontractor of a written certification from the
Arizona Department of Water Resources or its successor agency that the pumping and
transportation of ground water is in accord with Title 45, Chapter 2, Arizona Revised
Statutes, as it may be amended from time to time.
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(d) The Subcontractor shall not sell, lease, exchange, forbear or
otherwise transfer Project Water; provided, however, that this does not prohibit
exchanges of Project Water within the State of Arizona covered by separate
agreements; and provided, further, that this does not prohibit effluent exchanges with
Indian tribes pursuant to Article 6.2; and provided. further, that this does not prohibit the
resale or exchange of Project Water within the State of Arizona pursuant to Subarticle
4.3(e).
(e) (i) Project Water scheduled for delivery in any Year under this
subcontract may be used by the Subcontractor or resold, or exchanged by the
Subcontractor pursuant to appropriate agreements approved by the Contracting Officer
and the Contractor. If said water is resold or exchanged by the Subcontractor for an
amount in excess of that which the Subcontractor is obligated to pay under this
subcontract, the excess amount shall be paid forthwith by the Subcontractor to the
Contractor for application against the Contractor's Repayment Obligation to the United
States; provided. however, that the Subcontractor shall be entitled to recover actual
costs of transportation, treatment, and distribution, including but not limited to capital
costs and OM&R costs.
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(ii) Project Water scheduled for delivery in any Year under
this subcontract that cannot be used, resold, or exchanged by the Subcontractor may be
made available by the Contracting Officer and Contractor to other users. If such Project
Water is sold to or exchanged with other users, the Subcontractor shall be relieved of its
payments hereunder only to the extent of the amount paid to the Contractor by such
other users, but not to exceed the amount the Subcontractor is obligated to pay under
this subcontract for said water.
(iii) In the event the Subcontractor or the Contracting
Officer and the Contractor are unable to sell any portion of the Subcontractor's Project
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Water scheduled for delivery and not required by the Subcontractor, the Subcontractor
shall be relieved of the pumping energy portion of the OM&R charges associated with
the undelivered water as determined by the Contractor.
(f) Notwithstanding any other provision of this subcontract,
Project Water shall not be delivered to the Subcontractor unless and until the
Subcontractor has obtained final environmental clearance from the United States for the
system or systems through which Project Water is to be conveyed after delivery to the
Subcontractor at the Subcontractor's Project turnout(s). Such system(s) shall include all
pipelines, canals, distribution systems, treatment, storage, and other facilities through or
in which Project Water is conveyed, stored, or treated after delivery to the Subcontractor
at the Subcontractor's Project turnout(s). In each instance, final environmental
clearance will be based upon a review by the United States of the Subcontractor's plans
for taking and using Project Water and will be given or withheld by the United States in
accordance with the Final Environmental Impact Statement -- Water Allocations and
Water Service Contractinq (FES 82-7, filed March 19, 1982) and the National
Environmental Policy Act of 1969 (83 Stat. 852). Any additional action(s) required on
behalf of the Subcontractor in order to obtain final environmental clearance from the
United States will be identified to the Subcontractor by the United States, and no Project
Water shall be delivered to the Subcontractor unless and until the Subcontractor has
completed all such action(s) to the satisfaction of the United States.
4.4 Procedure for Orderinq Water.
(a) At least 15 months prior to the date the Secretary expects to
issue the Notice of Completion of the Water Supply System, or as soon thereafter as is
practicable, the Contracting Officer shall announce by written notice to the Contractor the
amount of Project Water available for delivery during the Year in which said Notice of
Completion is issued (initial Year of water delivery) and during the following Year. Within
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30 days of receiving such notice, the Contractor shall issue a notice of availability of
Project Water to the Subcontractor. The Subcontractor shall, within a reasonable period
of time as determined by the Contractor, submit a written schedule to the Contractor and
the Contracting Officer showing the quantity of water desired by the Subcontractor
during each month of said initial Year and the following Year. The Contractor shall notify
the Subcontractor by written notice of the Contractor's action on the requested schedule
within 2 months of the date of receipt of such request.
(b) The amounts, times, and rates of delivery of Project Water to
the Subcontractor during each Year subsequent to the Year following said initial Year of
water delivery shall be in accordance with a water delivery schedule for that Year. Such
schedule shall be determined in the following manner:
(i) On or before June 1 of each Year beginning with the
Year following the initial Year of water delivery pursuant to this subcontract, the
Contracting Officer shall announce the amount of Project Water available for delivery
during the following Year in a written notice to the Contractor. In arriving at this
determination, the Contracting Officer, subject to the provisions of the Repayment
Contract, shall use his best efforts to maximize the availability and delivery of Arizona's
full entitlement of Colorado River water over the term of this subcontract. Within 30 days
of receiving said notice, the Contractor shall issue a notice of availability of Project Water
to the Subcontractor.
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(ii) On or before October 1 of each Year beginning with
the Year following said initial Year of water delivery, the Subcontractor shall submit in
writing to the Contractor and the Contracting Officer a water delivery schedule indicating
the amounts of Project Water desired by the Subcontractor during each month of the
following Year along with a preliminary estimate of Project Water desired for the
succeeding 2 years.
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(iii) Upon receipt of the schedule, the Contractor and the
Contracting Officer shall review it and, after consultation with the Subcontractor, shall
make only such modifications to the schedule as are necessary to ensure that the
amounts, times, and rates of delivery to the Subcontractor are consistent with the
delivery capability of the Project, considering, among other things, the availability of
water and the delivery schedules of all subcontractors; provided, that this provision shall
not be construed to reduce annual deliveries to the Subcontractor.
(iv) On or before November 15 of each Year beginning
with the Year following said initial Year of water delivery, the Contractor shall determine
and furnish to the Subcontractor and the Contracting Officer the water delivery schedule
for the following Year which shall show the amount of water to be delivered to the
Subcontractor during each month of that Year, contingent upon the Subcontractor
remaining eligible to receive water under all terms contained herein.
(c) The monthly water delivery schedules may be amended upon
the Subcontractor's written request to the Contractor. Proposed amendments shall be
submitted by the Subcontractor to the Contractor no later than 15 days before the
desired change is to become effective, and shall be subject to review and modification in
like manner as the schedule. The Contractor shall notify the Subcontractor and the
Contracting Officer of its action on the Subcontractor's requested schedule modification
within 10 days of the Contractor's receipt of such request.
(d) The Contractor and the Subcontractor shall hold the United
States, its officers, agents, and employees, harmless on account of damage or claim of
damage of any nature whatsoever arising out of or connected with the actions of the
Contractor regarding water delivery schedules furnished to the Subcontractor.
(e) In no event shall the Contracting Officer or the Contractor be
required to deliver to the Subcontractor from the Water Supply System in anyone month
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a total amount of Project Water greater than eleven percent (11 %) of the Subcontractor's
maximum entitlement; provided, however, that the Contracting Officer may deliver a
greater percentage in any month if such increased delivery is compatible with the overall
delivery of Project Water to other subcontractors as determined by the Contracting
Officer and the Contractor and if the Subcontractor agrees to accept such increased
deliveries.
4.5 Points of Deliverv--Measurement and Responsibilitv for Distribution
of Water.
(a) The water to be furnished to the Subcontractor pursuant to
this subcontract shall be delivered at turnouts to be constructed by the United States at
such point(s) on the Water Supply System as may be agreed upon in writing by the
Contracting Officer and the Contractor, after consultation with the Subcontractor.
(b) Unless the United States and the Subcontractor agree by
contract to the contrary, the Subcontractor shall construct and install, at its sole cost and
expense, connection facilities required to take and convey the water from the turnouts to
the Subcontractor's service area. The Subcontractor shall furnish, for approval of the
Contracting Officer, drawings showing the construction to be performed by the
Subcontractor within the Water Supply System right-of-way 6 months before starting said
construction. The facilities may be installed, operated, and maintained on the Water
Supply System right-of-way subject to such reasonable restrictions and regulations as to
type, location, method of installation, operation, and maintenance as may be prescribed
by the Contracting Officer.
(c) All water delivered from the Water Supply System shall be
measured with equipment furnished and installed by the United States and operated and
maintained by the United States or the Operating Agency. Upon the request of the
Subcontractor or the Contractor, the accuracy of such measurements shall be
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investigated by the Contracting Officer or the Operating Agency, Contractor, and
Subcontractor, and any errors which may be mutually determined to have occurred
therein shall be adjusted; provided, that in the event the parties cannot agree on the
required adjustment, the Contracting Officer's determination shall be conclusive.
(d) Neither the United States, the Contractor, nor the Operating
Agency shall be responsible for the control, carriage, handling, use, disposal, or
distribution of Project Water beyond the delivery point(s) agreed to pursuant to Sub-
article 4.5(a). The Subcontractor shall hold the United States, the Contractor, and the
Operating Agency harmless on account of damage or claim of damage of any nature
whatsoever for which there is legal responsibility, including property damage, personal
injury, or death arising out of or connected with the Subcontractor's control, carriage,
handling, use, disposal, or distribution of such water beyond said delivery point(s).
4.6 Temporary Reductions. In addition to the right of the United States
under Subarticle 8.3(a)(iv) of the Repayment Contract temporarily to discontinue or
reduce the amount of water to be delivered, the United States or the Operating Agency
may, after consultation with the Contractor, temporarily discontinue or reduce the
quantity of water to be furnished to the Subcontractor as herein provided for the
purposes of investigation, inspection, maintenance, repair, or replacement of any of the
Project facilities or any part thereof necessary for the furnishing of water to the
Subcontractor, but so far as feasible the United States or the Operating Agency shall
coordinate any such discontinuance or reduction with the Subcontractor and shall give
the Subcontractor due notice in advance of such temporary discontinuance or reduction,
except in case of emergency, in which case no notice need be given. Neither the United
States, its officers, agents, and employees, nor the Operating Agency, its officers,
agents, and employees, shall be liable for damages when, for any reason whatsoever,
any such temporary discontinuance or reduction in delivery of water occurs. If any such
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discontinuance or temporary reduction results in deliveries to the Subcontractor of less
water than what has been paid for in advance, the Subcontractor shall be entitled to be
reimbursed for the appropriate proportion of such advance payments prior to the date of
the Subcontractor's next payment of water service charges or the Subcontractor may be
given credit toward the next payment of water charges if the Subcontractor should so
desire.
4.7 Priority in Case of ShortaQe. On or before June 1 of each Year,
the Secretary shall announce the Available CAP Supply for the following Year in a
written notice to the Contractor.
(a) Prior to January 1, 2044, a time of shortage shall exist in any
Year in which the Available CAP Supply for that Year is insufficient to satisfy all of the
entitlements set forth in subparagraphs (i) through (iii) below:
(i) Three hundred forty-three thousand seventy-nine
(343,079) acre-feet of CAP Indian Priority Water;
(ii) Six hundred thirty-eight thousand eight hundred
twenty-three (638,823) acre-feet of CAP M&I Priority
Water; and
(iii) Up to one hundred eighteen (118) acre-feet of CAP
M&I Priority Water converted from CAP NIA Priority
Water under the San Tan Irrigation District's CAP
Subcontract.
(b) On or after January 1, 2044, a time of shortage shall exist in
any Year in which the Available CAP Supply for that Year is insufficient to satisfy all of
the entitlements as set forth in subparagraphs (i) through (iv) below:
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(c)
(i) Three hundred forty-three thousand seventy-nine
(343,079) acre-feet of CAP Indian Priority Water;
(ii) Six hundred thirty-eight thousand eight hundred
twenty-three (638,823) acre-feet of CAP M&I Priority
Water;
(iii) Up to forty-seven thousand three hundred three
(47,303) acre-feet of CAP M&I Priority Water
converted from CAP NIA Priority Water pursuant to the
Hohokam Agreement; and
(iv) Up to one hundred eighteen (118) acre-feet of CAP
M&I Priority Water converted from CAP NIA Priority
Water under the San Tan Irrigation District's CAP
Subcontract.
Initial distribution of water in time of shortage.
(i) If the Available CAP Supply is equal to or less than
eight hundred fifty-three thousand seventy-nine
(853,079) acre-feet, then 36.37518% of the Available
CAP Supply shall be available for delivery as CAP
Indian Priority Water and the remainder shall be
available for delivery as CAP M&I Priority Water.
(ii) If the Available CAP Supply is greater than eight
hundred fifty-three thousand seventy-nine (853,079)
acre-feet, then the quantity of water available for
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delivery as CAP Indian Priority Water shall be
determined in accordance with the following equation
and the remainder shall be available for delivery as
CAP M&I Priority Water:
1= {[32,770 7 (E - 853,079)] x W} + (343,079 - {[32,770 7 (E - 853,079)] x E})
where
I = the quantity of water available for delivery as CAP Indian
Priority Water
E = the sum of the entitlements to CAP Indian Priority Water and
CAP M&I Priority Water as described in subparagraphs 4.7(a) or (b),
whichever is applicable; and
W = the Available CAP Supply
Example A. If, before January 1, 2044, the sum of the entitlements to CAP
Indian Priority Water and CAP M&I Priority Water as described in
subparagraph 4.7(a) is nine hundred eighty-one thousand nine hundred
two (343,079 + 638,823 + 0) acre-feet, then the quantity of water available
for delivery as CAP Indian Priority Water would be ninety-three thousand
three hundred three (93,303) acre-feet plus 25.43800% of the Available
CAP Supply.
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Example B. If, after January 1, 2044, the sum of the entitlements to CAP
Indian Priority Water and CAP M&I Priority Water as described in
subparagraph 4.7(b) is one million twenty-nine thousand three hundred
twenty-three (1,029,323) acre-feet (343,079 + 638,823 + 47,303 + 118),
then the quantity of water available for delivery as CAP Indian Priority
Water would be one hundred fifty-one thousand six hundred ninety-one
(151,691) acre-feet plus 18.59354% of the Available CAP Supply.
(d) In time of shortage unscheduled CAP Water shall be
redistributed as follows:
(i)
Any water available for delivery as CAP Indian Priority
Water that is not scheduled for delivery pursuant to
contracts, leases or exchange agreements for the
delivery of CAP Indian Priority Water shall become
available for delivery as CAP M&I Priority Water.
CAP M&I Priority Water shall be distributed among
those entities with contracts for the delivery of CAP
M&I Priority Water in a manner determined by the
Secretary and the CAP Operating Agency in
consultation with M&I water users to fulfill all delivery
requests to the greatest extent possible. Any water
available for delivery as CAP M&I Priority Water that is
not scheduled for delivery pursuant to contracts,
leases or exchange agreements for the delivery of
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(ii)
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CAP M&I Priority Water shall become available for
delivery as CAP Indian Priority Water.
(e) Any water remaining after all requests for delivery of CAP
Indian Priority Water and CAP M&I Priority Water have been satisfied shall become
available for delivery as CAP NIA Priority Water.
(f) Nothing in this paragraph 4.7 shall be construed to allow or
authorize any CAP Contractor or CAP Subcontractor to receive, pursuant to such
contracts, CAP water in amounts greater than such contractor's entitlement.
4.8 Secretarial Control of Return Flow.
(a) The Secretary reserves the right to capture all Return Flow
flowing from the exterior boundaries of the Contractor's Service Area as a source of
supply and for distribution to and use of the Central Arizona Project to the fullest extent
practicable. The Secretary also reserves the right to capture for Project use Return Flow
which originates or results from water contracted for from the Central Arizona Project
within the boundaries of the Contractor's Service Area if, in his judgment, such Return
Flow is not being put to a beneficial use. The Subcontractor may recapture and reuse or
sell its Return Flow; provided, however, that such Return Flow may not be sold for use
outside Maricopa, Pinal, and Pima Counties; and provided, further, that this does not
prohibit effluent exchanges with Indian tribes pursuant to Article 6.2. The Subcontractor
shall, at least 60 days in advance of any proposed sale of such water, furnish the
following information in writing to the Contracting Officer and the Contractor:
* * * *
* * * *
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(i) The name and address of the prospective buyer.
(ii) The location and proposed use of the Return Flow.
(iii) The price to be charged for the Return Flow.
(b) The price charged for the Return Flow may cover the cost
incurred by the Subcontractor for Project Water plus the cost required to make the
Return Flow usable. If the price received for the Return Flow is greater than the costs
incurred by the Subcontractor, as described above, the excess amount shall be forthwith
returned by the Subcontractor to the Contractor for application against the Contractor's
Repayment Obligation to the United States. Costs required to make Return Flow usable
shall include but not be limited to capital costs and OM&R costs including transportation,
treatment, and distribution, and the portion thereof that may be retained by the Subcon-
tractor shall be subject to the advance approval of the Contractor and the Contracting
Officer.
(c) Any Return Flow captured by the United States and
determined by the Contracting Officer and the Contractor to be suitable and available for
use by the Subcontractor may be delivered by the United States or Operating Agency to
the Subcontractor as a part of the water supply for which the Subcontractor subcontracts
hereunder and such water shall be accounted and paid for pursuant to the provisions
hereof.
(d) All capture, recapture, use, reuse, and sale of Return Flow
under this article shall be in accord with Arizona water law unless such law is
inconsistent with the Congressional directives applicable to the Central Arizona Project.
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4.9 Water and Air Pollution Control. The Subcontractor, in carrying out
this subcontract, shall comply with all applicable water and air pollution laws and
regulations of the United States and the State of Arizona and shall obtain all required
permits or licenses from the appropriate Federal, State, or local authorities.
4.10 Qualitv of Water. The operation and maintenance of Project
facilities shall be performed in such manner as is practicable to maintain the quality of
water made available through such facilities at the highest level reasonably attainable as
determined by the Contracting Officer. Neither the United States, the Contractor, nor the
Operating Agency warrants the quality of water and is under no obligation to construct or
furnish water treatment facilities to maintain or better the quality of water. The
Subcontractor waives its right to make a claim against the United States, the Operating
Agency, the Contractor, or another subcontractor because of changes in water quality
caused by the commingling of Project Water with other water.
4.11 Exchanqe Water.
(a) Where the Contracting Officer determines the Subcontractor
is physically able to receive Colorado River mainstream water in exchange for or in
replacement of existing supplies of water from surface sources other than the Colorado
River, the Contracting Officer may require that the Subcontractor accept said
mainstream water in exchange for or in replacement of said existing supplies pursuant to
the provisions of Section 304(d) of the Basin Project Act; provided, however, that a sub-
contractor on the Project aqueduct shall not be required to enter into exchanges in which
existing supplies of water from surface sources are diverted for use by other
subcontractors downstream on the Project aqueduct.
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(b) If, in the event of shortages, the Subcontractor has yielded
water from other surface water sources in exchange for Colorado River mainstream
water supplied by the Contractor or the Operating Agency, the Subcontractor shall have
first priority against other users supplied with Project Water that have not yielded water
from other surface water sources but only in quantities adequate to replace the water so
yielded.
4.12 Entitlement to Project M&I Water.
(a) The Subcontractor is entitled to take a maximum of 47
acre-feet of Project Water for M&I uses including but not limited to underground storage.
(b) If at any time during the term of this subcontract there is
available for allocation additional M&I Project Water, or Agricultural Water converted to
M&I use, it shall be delivered to the Subcontractor at the same water service charge per
acre-foot and with the same priority as other M&I Water, upon execution or amendment
of an appropriate subcontract among the United States, the Contractor, and the
Subcontractor and payment of an amount equal to the acre-foot charges previously paid
by other subcontractors pursuant to Article 5.2 hereof plus interest. In the case of
Agricultural Water conversions, the payment shall be reduced by all previous payments
of agricultural capital charges for each acre-foot of water converted. The interest due
shall be calculated for the period between issuance of the Notice of Completion of the
Water Supply System and execution or amendment of the subcontract using the
weighted interest rate received by the Contractor on all investments during that period.
4.13 Delivery of Project Water Prior to Completion of Project Works.
Prior to the date of issuance of the Notice of Completion of the Water Supply System by
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the Secretary, water may be made available for delivery by the Secretary on a "when
available" basis at a water rate and other terms to be determined by the Secretary after
consultation with the Contractor.
5. PAYMENTS:
5.1 Water Service CharQes for Payment of Operation. Maintenance. and
Replacement Costs. Subject to the provisions of Article 5.4 hereof, the Subcontractor
shall pay in advance for Project OM&R costs estimated to be incurred by the United
States or the Operating Agency. At least 15 months prior to first delivery of Project
Water, or as soon thereafter as is practicable, the Contractor shall furnish the
Subcontractor with an estimate of the Subcontractor's share of OM&R costs to the end
of the initial Year of water delivery and an estimate of such costs for the following Year.
Within a reasonable time of the receipt of said estimates, as determined by the
Contractor, but prior to the delivery of water, the Subcontractor shall advance to the Con-
tractor its share of such estimated costs to the end of the initial month of water delivery
and without further notice or demand shall on or before the first day of each succeeding
month of the initial Year of water delivery and the following Year advance to the
Contractor in equal monthly installments the Subcontractor's share of such estimated
costs. Advances of monthly payments for each subsequent Year shall be made by the
Subcontractor to the Contractor on the basis of annual estimates to be furnished by the
Contractor on or before June 1 preceding each said subsequent Year and the advances
of payments for said estimated costs shall be due and payable in equal monthly
payments on or before the first day of each month of the subsequent Year. Differences
between actual OM&R costs and estimated OM&R costs shall be determined by the
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Contractor and shall be adjusted in the next succeeding annual estimates; provided,
however, that if in the opinion of the Contractor the amount of any annual OM&R
estimate is likely to be insufficient to cover the above-mentioned costs during such
period, the Contractor may increase the annual estimate of the Subcontractor's OM&R
costs by written notice thereof to the Subcontractor, and the Subcontractor shall forthwith
increase its remaining monthly payments in such Year to the Contractor by the amount
necessary to cover the insufficiency. All estimates of OM&R costs shall be accompanied
by data and computations relied on by the Contractor in determining the amounts of the
estimated OM&R costs and shall be subject to joint review by the Subcontractor and the
Contractor.
5.2 M&I Water Service Charoes.
(a) Subject to the provisions of Article 5.4 hereof and in addition
to the OM&R payments required in Article 5.1 hereof, the Subcontractor shall, in advance
of the delivery of Project M&l Water by the United States or the Operating Agency, make
payment to the Contractor in equal semiannual installments of an M&l Water service
capital charge based on a maximum entitlement of 47 acre-feet per year multiplied by
the rate established by the Contractor for that year.
(b) The M&l Water service capital charge may be adjusted
periodically by the Contractor as a result of repayment determinations provided for in the
Repayment Contract and to reflect all sources of revenue, but said charge per acre-foot
shall not be greater than the amount required to amortize Project capital costs allocated
to the M&I function and determined by the Contracting Officer to be a part of the
Contractor's Repayment Obligation. Such amortization shall include interest at 3.342
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percent per annum. If any adjustment is made in the M&I Water service capital charge,
notice thereof shall be given by the Contractor to the United States and to the
Subcontractor on or before June 1 of the Year preceding the Year the adjusted charge
becomes effective. The M&I Water service capital charge payment for the initial Year
shall be advanced to the Contractor in equal semiannual installments on or before
December 1 preceding the initial Year and June 1 of said initial Year; provided, however,
that the payment of the initial M&I Water service capital charge shall not be due until the
Year in which Project Water is available to the Subcontractor after Notice of Completion
of the Water Supply System is issued. Thereafter, for each subsequent Year, payments
by the Subcontractor in accordance with the foregoing provisions shall be made in equal
semiannual installments on or before the December 1 preceding said subsequent Year
and the June 1 of said subsequent Year as may be specified by the Contractor in written
notices to the Subcontractor.
(c) Payment of all M&I Water service capital and corresponding
OM&R charges becoming due hereunder prior to or on the dates stipulated in Articles
5.1 and 5.2 is a condition precedent to receiving M&I Water under this subcontract.
(d) All payments to be made to the Contractor or the United
States under Articles 5.1 and 5.2 hereof shall be made by the Subcontractor as such
payments fall due from revenues legally available to the Subcontractor for such payment
from the sale of water to its water users and from any and all other sources which might
be legally available; Provided, That no portion of the general taxing authority of the
Subcontractor, nor its general funds, nor funds from ad valorem taxes are obligated by
the provisions of this subcontract, nor shall such sources be liable for the payments,
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contributions, and other costs pursuant to this subcontract, or to satisfy any obligation
hereunder unless duly and lawfully allocated and budgeted for such purpose by the
Subcontractor for the applicable budget year; and Provided, further, That no portion of
this agreement shall ever be construed to create an obligation superior in lien to or on a
parity with the Subcontractor's revenue bonds now or hereafter issued. The
Subcontractor shall levy and impose such necessary water service charges and rates
and use all the authority and resources available to it to collect all such necessary water
service charges and rates in order that the Subcontractor may meet its obligations
hereunder and make in full all payments required under this subcontract on or before the
date such payments become due.
5.3 Loss of Entitlement. The Subcontractor shall have no right to
delivery of water from Project facilities during any period in which the Subcontractor may
be in arrears in the payment of any charges due the Contractor. The Contractor may sell
to another entity any water determined to be available under the Subcontractor's
entitlement for which payment is in arrears; provided, however, that the Subcontractor
may regain the right to use any unsold portion of the water determined to be available
under the original entitlement upon payment of all delinquent charges plus any
difference between the subcontractual obligation and the price received in the sale of the
water by the Contractor and payment of charges for the current period.
5.4 Refusal to Accept Deliverv. In the event the Subcontractor fails or
refuses in any Year to accept delivery of the quantity of water available for delivery to
and required to be accepted by it pursuant to this subcontract, or in the event the
Subcontractor in any Year fails to submit a schedule for delivery as provided in Article
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4.4 hereof, said failure or refusal shall not relieve the Subcontractor of its obligation to
make the payments required in this subcontract.
5.5 CharQe for Late Payments. The Subcontractor shall pay a late
payment charge on installments or charges that are received after the due date. The
late payment charge percentage rate calculated by the Department of the Treasury and
published quarterly in the Federal ReQister shall be used; provided, that the late
payment charge percentage rate shall not be less than 0.5 percent per month. The late
payment charge percentage rate applied on an overdue payment shall remain in effect
until payment is received. The late payment rate for a 3D-day period shall be determined
on the day immediately following the due date and shall be applied to the overdue
payment for any portion of the 3D-day period of delinquency. In the case of partial late
payments, the amount received shall first be applied to the late charge on the overdue
payment and then to the overdue payment.
6. GENERAL PROVISIONS:
6.1 Repavment Contract ControllinQ. Pursuant to the Repayment
Contract, the United States has agreed to construct and, in the absence of an approved
Operating Agency, to operate and maintain the works of the Central Arizona Project and
to deliver Project Water to the various subcontractors within the Project Service Area;
and the Contractor has obligated itself for the payment of various costs, expenses, and
other amounts allocated to the Contractor pursuant to Article 9 of the Repayment
Contract. The Subcontractor expressly approves and agrees to all the terms presently
set out in the Repayment Contract including Subarticle 8.8(b)(viii) thereof, or as such
terms may be hereafter amended, and agrees to be bound by the actions to be taken
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and the determinations to be made under that Repayment Contract, except as otherwise
provided herein.
6.2 Effluent Exchanqes. The Subcontractor may enter into direct
effluent exchanges with Indian entities that have received an allocation of Project Water
and receive all benefits from the exchange.
6.3 Notices. Any notice, demand or request authorized or required by
this subcontract shall be deemed to have been given when mailed, postage prepaid, or
delivered to the Regional Director, Lower Colorado Region, Bureau of Reclamation, P.O.
Box 61470, Boulder City, Nevada 89006-1470, on behalf of the Contractor or
Subcontractor; to the Central Arizona Water Conservation District, P. O. Box 43020,
Phoenix, Arizona 85080, on behalf of the United States or Subcontractor; and to the
Town of Marana, 5100 W. Ina Road, Tucson, Arizona 85743, on behalf of the United
States or Contractor. The designation of the addressee or the address may be changed
by notice given in the same manner as provided in this Article for other notices.
6.4 Water Conservation Proqram.
(a) While the contents and standards of a given water
conservation program are primarily matters of State and local determination, there is a
strong Federal interest in developing an effective water conservation program because
of this subcontract. The Subcontractor shall develop and implement an effective water
conservation program for all uses of water that is provided from or conveyed through
Federally constructed or Federally financed facilities. That water conservation program
shall contain definite goals, appropriate water conservation measures, and time
schedules for meeting the water conservation objectives.
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(b) A water conservation program, acceptable to the Contractor
and the Contracting Officer, shall be in existence prior to one or all of the following: (1)
service of Federally stored/conveyed water; (2) transfer of operation and maintenance of
the Project facilities to the Contractor or Operating Agency; or (3) transfer of the Project
to an operation and maintenance status. The distribution and use of Federally
stored/conveyed water and/or the operation of Project facilities transferred to the
Contractor shall be consistent with the adopted water conservation program. Following
execution of this subcontract, and at subsequent 5-year intervals, the Subcontractor
shall resubmit the water conservation plan to the Contractor and the Contracting Officer
for review and approval. After review of the results of the previous 5 years and after
consultation with the Contractor, the Subcontractor, and the Arizona Department of
Water Resources or its successor, the Contracting Officer may require modifications in
the water conservation program to better achieve program goals.
6.5 Rules. Requlations, and Determinations.
(a) The Contracting Officer shall have the right to make, after an
opportunity has been offered to the Contractor and Subcontractor for consultation, rules
and regulations consistent with the provisions of this subcontract, the laws of the United
States and the State of Arizona, to add to or to modify them as may be deemed proper
and necessary to carry out this subcontract, and to supply necessary details of its
administration which are not covered by express provisions of this subcontract. The
Contractor and Subcontractor shall observe such rules and regulations.
(b) Where the terms of this subcontract provide for action to be
based upon the opinion or determination of any party to this subcontract, whether or not
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stated to be conclusive, said terms shall not be construed as permitting such action to be
predicated upon arbitrary, capricious, or unreasonable opinions or determinations. In
the event that the Contractor or Subcontractor questions any factual determination made
by the Contracting Officer, the findings as to the facts shall be made by the Secretary
only after consultation with the Contractor or Subcontractor and shall be conclusive upon
the parties.
6.6 Officials Not to Benefit.
(a) No Member of or Delegate to Congress or Resident
Commissioner shall be admitted to any share or part of this subcontract or to any benefit
that may arise herefrom. This restriction shall not be construed to extend to this
subcontract if made with a corporation or company for its general benefit.
(b) No official of the Subcontractor shall receive any benefit that
may arise by reason of this subcontract other than as a water user within the Project and
in the same manner as other water users within the Project.
6.7 Assiqnment Limited--Successors and Assiqns Obliqated. The
provisions of this subcontract shall apply to and bind the successors and assigns of the
parties hereto, but no assignment or transfer of this subcontract or any part or interest
therein shall be valid until approved by the Contracting Officer.
6.8 Judicial Remedies Not Foreclosed. Nothing herein shall be
construed (a) as depriving any party from pursuing and prosecuting any remedy in any
appropriate court of the United States or the State of Arizona which would otherwise be
available to such parties even though provisions herein may declare that determinations
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or decisions of the Secretary or other persons are conclusive or (b) as depriving any
party of any defense thereto which would otherwise be available.
6.9 Books. Records. and Reports. The Subcontractor shall establish
and maintain accounts and other books and records pertaining to its financial
transactions, land use and crop census, water supply, water use, changes of Project
works, and to other matters as the Contracting Officer may require. Reports thereon
shall be furnished to the Contracting Officer in such form and on such date or dates as
he may require. Subject to applicable Federal laws and regulations, each party shall
have the right during office hours to examine and make copies of each other's books and
records relating to matters covered by this subcontract.
6.10 Equal Opportunity. During the performance of this subcontract, the
Subcontractor agrees as follows:
(a) The Subcontractor shall not discriminate against any
employee or applicant for employment because of race, color, religion, sex, or national
origin. The Subcontractor shall take affirmative action to ensure that applicants are
employed, and that employees are treated during employment without regard to their
race, color, religion, sex, or national origin. Such action shall include, but not be limited
to the following: Employment, upgrading, demotion, or transfer; recruitment or
recruitment advertising; layoff or termination; rates of payor other forms of
compensation; and selection for training, including apprenticeship. The Subcontractor
agrees to post in conspicuous places, available to employees and applicants for
employment, notices to be provided setting forth the provisions of this nondiscrimination
clause.
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(b) The Subcontractor shall, in all solicitations or advertisements
for employees placed by or on behalf of the Subcontractor, state that all qualified
applicants shall receive consideration for employment without discrimination because of
race, color, religion, sex, or national origin.
(c) The Subcontractor shall send to each labor union or
representative of workers with which it has a collective bargaining agreement or other
contract or understanding, a notice, to be provided by the Contracting Officer, advising
said labor union or workers' representative of the Subcontractor's commitments under
Section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of
the notice in conspicuous places available to employees and applicants for employment.
(d) The Subcontractor shall comply with all provisions of
Executive Order No. 11246 of September 24, 1965, as amended, and of the rules,
regulations, and relevant orders of the Secretary of Labor.
(e) The Subcontractor shall furnish all information and reports
required by said amended Executive Order and by the rules, regulations, and orders of
the Secretary of Labor, or pursuant thereto, and shall permit access to its books,
records, and accounts by the Contracting Officer and the Secretary of Labor for
purposes of investigation to ascertain compliance with such rules, regulations, and
orders.
(f) In the event of the Subcontractor's noncompliance with the
nondiscrimination clauses of this subcontract or with any of such rules, regulations, or
orders, this subcontract may be canceled, terminated, or suspended, in whole or in part,
and the Subcontractor may be declared ineligible for further Government contracts in
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accordance with procedures authorized in said amended Executive Order and such
other sanctions may be imposed and remedies invoked as provided in said amended
Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as
otherwise provided by law.
(g) The Subcontractor shall include the provisions of paragraphs
(a) through (g) in every subcontract or purchase order unless exempted by the rules,
regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of said
amended Executive Order, so that such provisions shall be binding upon each
subcontractor or vendor. The Subcontractor shall take such action with respect to any
subcontract or purchase order as may be directed by the Secretary of Labor as a means
of enforcing such provisions, including sanctions for noncompliance; provided, however,
that in the event a Subcontractor becomes involved in, or is threatened with, litigation
with a subcontractor or vendor as a result of such direction, the Subcontractor may
request the United States to enter into such litigation to protect the interest of the United
States.
6.11 Title VI. Civil Riqhts Act of 1964.
(a) The Subcontractor agrees that it shall comply with Title VI of
the Civil Rights Act of July 2, 1964 (78 Stat. 241), and all requirements imposed by or
pursuant to the Department of the Interior Regulation (43 CFR 17) issued pursuant to
that title to the end that, in accordance with Title VI of that Act and the Regulation, no
person in the United States shall, on the grounds of race, color, or national origin be
excluded from participation in, be denied the benefits of, or be otherwise subjected to
discrimination under any program or activity for which the Subcontractor receives
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financial assistance from the United States and hereby gives assurance that it shall
immediately take any measures to effectuate this agreement.
(b) If any real property or structure thereon is provided or
improved with the aid of Federal financial assistance extended to the Subcontractor by
the United States, this assurance obligates the Subcontractor, or in the case of any
transfer of such property, any transferee for the period during which the real property or
structure is used for a purpose involving the provision of similar services or benefits. If
any personal property is so provided, this assurance obligates the Subcontractor for the
period during which it retains ownership or possession of the property. In all other
cases, this assurance obligates the Subcontractor for the period during which the
Federal financial assistance is extended to it by the United States.
(c) This assurance is given in consideration of and for the
purpose of obtaining any and all Federal grants, loans, contracts, property, discounts, or
other Federal financial assistance extended after the date hereof to the Subcontractor by
the United States, including installment payments after such date on account of
arrangements for Federal financial assistance which were approved before such date.
The Subcontractor recognizes and agrees that such Federal financial assistance shall
be extended in reliance on the representations and agreements made in this assurance,
and that the United States shall reserve the right to seek judicial enforcement of this
assurance. This assurance is binding on the Subcontractor, its successors, transferees,
and assignees.
6.12 Confirmation of Subcontract. The Subcontractor shall promptly seek
a final decree of the proper court of the State of Arizona approving and confirming the
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subcontract and decreeing and adjudging it to be lawful, valid, and binding on the
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Subcontractor. The Subcontractor shall furnish to the United States a certified copy of
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such decree and of all pertinent supporting records. This subcontract shall not be
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binding on the United States, the Contractor, or the Subcontractor until such final decree
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has been entered.
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6.13 ContinQent on Appropriation or Allotment of Funds. The expenditure
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or advance of any money or the performance of any work by the United States
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hereunder which may require appropriation of money by the Congress or the allotment of
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funds shall be contingent upon such appropriation or allotment being made. The failure
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of the Congress to appropriate funds or the absence of any allotment of funds shall not
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relieve the Subcontractor from any obligation under this subcontract. No liability shall
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accrue to the United States in case such funds are not appropriated or allotted.
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IN WITNESS WHEREOF, the parties hereto have executed this
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subcontract No.
the day and year first above-written.
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THE UNITED STATES OF AMERICA
Legal Review and Approval
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By:
Field Solicitor
Phoenix, Arizona
By:
Regional Director
Lower Colorado Region
Bureau of Reclamation
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Attest:
Secretary
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Atte~~~
Title: 7i~ t~r/c
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CENTRAL ARIZONA WATER
CONSERVATION DISTRICT
By:
President
TOWN OF MARANA
!:i ,:hill < /
I l'
. ,-,
;//11'1 ( 1"'/
By:
Title:
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EXHIBIT A
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Article No.
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DUPUCATE-OR1GINAL
Contract No. 14-06-W-245
Amendment No. 1
B.C. Draft 11/28/88
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
CONTRACT BETYIEEH THE UNITED STATES
AND THE CENTRAL ARIZONA WATER CONSERVATION DISTRICT
FOR DELIVERY OF WATER AND REPAYMENT OF COSTS OF THE
CENTRAL ARIZONA PROJECT
INDEX
Tit 1 e
PARTI ES
AUTHORITI ES
RECITALS
ARTICLES OF AGREEMENT .
DEFINITIONS . . . . .
PROJECT CONSTRUCTION
Agreement of the United States
Costs of Project - . . . . . .
Principal Works of the Project
Changes in Project Works . . . .
Construction Conditions. . . . .
Annual Work Program. . . . . .
Inability of the United States to Complete
Project on Basis of Cost Estimates
PROJECT OPERATION, MAINTENANCE, AND
REPLACEMENT . . . . . . . . . . . .
.1
Operation aRd Maintenance and Water Deliveries
by the United States Prior to Completion
of Construction . . . . . . . . . . . . . . . .
Operation and Maintenance and Water Deliveries
after Completion of Construction . . . . . .
.2
Paqe No.
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Article No.
Title
8. DELIVERY OF WATER
.1 Obligation of United States
.2 Term of Contract . .
.3 Conditions Relating to Delivery
.4 Delivery Points. .... .
.5 Measurement . .
.6 Responsibility for Distribution of Water
after Leaving Water Supply System
.7 Quantity of Water to be Delivered. . . .
.8 Subcontracts.. .,.
.9 Shortages .., .
.10 Rate of Diversions of Colorado River Water
.11 Pri ority inCase of Shortage. .,
.12 No Guarantee of Availability of Water
.13 Secretarial Control of Return Flow
.14 Water and Air Pollution Control
.15 Quality of Water .,
.16 Exchange Water .. .. .
.17 Rights Reserved to the United States to Have
Water Carried by Project Facilities.
.18 Wheeling Non-Project Water .
.19 Use of Project Power to Wheel Non-Project
Water .. ..,
9. PAYMENT OF PROJECT COSTS ALLOCATED TO
CONTRACTOR . .
.1 Allocation of Construction Costs
.2 Repayment Concepts
.3 Contractor's Construction Cost Repayment
Ob 1 i ga t ion. . ..
.4 Payment of Contractor's Construction Cost
Repayment Obligation .
.5 Commercial Power Rates .
.6 Other Costs Borne by the Contractor.
.7 Repayment of Costs of Excess Capacity in
Granite Reef Aqueduct.
.8 Ad Valorem Taxes, Assessments, Tolls, and
Other Charges .
.9 Continuation of Payments after Project
Payout
.10 Defaults
10. GENERAL PROVISIONS
.1 Other Contracts
.2 Title to Project Works
.3 Reserve Funds
Paae No.
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Article No.
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5 .11
6 .12
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7 .14
8 .15
9 II.
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Title
Recreational Use of Water Facilities
Confirmation of Contract. . . . . .
Rules, Regulations, and Determinations
BOOKS, Records, and Reports . . . . .
Noti ces ..............
Contingent on Appropriation or Allotment
of Funds . . . . . . . . . . . . . . .
Changes in Contractor's Organization. . .
Assignment Limited--Successors and Assigns
Ob 1 i gated . . . . . . . . . . . . . .
Judicial Remedies Not Foreclosed. . .
Equal Opportunity . . . . . . . . . .
Compliance with Civil Rights Laws and
Regulations . . . . . . . . . . .
Officials Not to Benefit. . . . . .
STATUS OF DECEMBER 15, 1972 CONTRACT
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Contract No. 14-06-W-245
Amendment No. 1
B.C. Draft 11/28/88
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECL^MATION
CONTRACT BE"l"WEEN THE UNITED STATES
AND THE CENTRL ARIZONA WATER CONSERVATION DISTRICT
FOR DELIVI;:RY OF WATER AND REPAYMENT OF COSTS OF THE
CENTRAL ARIZONA PROJECT
1.
P ARTI ES
8 The parties to this contract, executed as of this first day of
9 December, 1988, are the United States of America, acting through the
10 Department of the Interior, and the Central Arizona Water Conservation
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District, a multi-county water conservation district organized under
the laws of Arizona, with its principal place of business in Phoenix,
Arizona.
2. AUTHORITIES
This contract is made pursuant to the:
2.1 Act of June 17, 1902, 32 Stat. 388, and acts amendatory
thereof and supplementary thereto.
2.2 Boulder Canyon Project Act, approved December 21, 1928,
45 Stat. 1057, a supplement to the Federal Reclamation Laws.
2.3 Reclamation Project Act of 1939, approved August 4, 1939,
53 Stat. 1187, as amended.
2.4 Colorado River Basin Project Act, approved
September 30, 1968, 82 Stat. 885, as amended, a supplement to the Federal
Reclamation Laws.
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Contractor's repayment obligation will exceed $1.2 billion, the
Contract i ng Ofn cer shall consul t wi th the Contractor and conti nuati on of
construction will be contingent upon the execution of an amendatory contract
to cover the increased repayment obligation.
3.6 Both parties acknowledge that the Contractor's repayment
obligation will exceed $1.2 billion, and have agreed to increase the
Contractor's repayment ceiling to a level sufficient to facilitate
completion of the project.
4. ARTICLES OF AGREEMENT
NOW, THEREFORE, in consideration of the mutual and dependent
stipulations and covenants herein contained, it is agreed by and between the
parties hereto as follows:
5. DEFINITIONS
>' When used herein, unless otherwise distinctly expressed, or
manifestly incompatible with the intent hereof, the terms:
5.1 "Federal Reclamation Laws" or "Reclamation Laws" shall
mean the Act of June 17, 1902, 32 Stat. 388, and all acts amendatory
thereof or supplementary thereto.
5.2 "Basin Project Act" shall mean the Colorado River Basin
Project Act, 82 Stat. 885, dated September 3D, 1968, as amended, which is a
supplement to the Federal Reclamation laws.
5.3 "Secretary" shall mean the Secretary of the Interior of the
United States or his duly authorized representative.
5.4 "Contracting Officer" shall mean the Secretary or his
authorized designee acting in his behalf.
5.5 "Contractor" shall mean the Central Arizona Water
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Conservat ion Di stri ct, organi zed pursuant to Ari zona Revi sed Statutes,
Section 48-3701 et ~.
5.6 "Service area" shall mean the area now included within
the Central Arizona Water Conservation District, consisting of Maricopa,
Pinal, and Pima Counties of Arizona and such other counties as may
hereafter become part of the District, exclusive of any Indian reservation
land lying wholly or partly within said Counties.
5.7 "Subcontractorll shall mean any irrigation district,
municipality, individual, or any entity which enters into a water service
subcontract with the United "States and the Contractor in furtherance of the
provisions of the Basin Project Act.
5.8 . "Central Arizona Project" or "project" shall mean the
project and works authorized by Section 301(a) of the Basin Project
Act and constructed by the United States pursuant to the provisions
of said Act and this contract.
5.9 "Project works" shall mean the principal works described
in Section 301(a) of the Basin Project Act, and appurtenances thereto,
or as modified pursuant to Article 6.4 hereof, together with lands,
interests in lands, and rights-of-way for such works and appurtenances.
5.10 "Water supply system" shall mean the Navajo Project, Havasu
Pumping Plant, the Granite Reef, Salt Gila and Tucson aqueducts and
associated pumping plants and appurtenant works, but not including Tucson
Terminal Storage or any distribution works.
5.11 IIDistribution worksll shall mean those facilities
constructed or financed by the United States under the authorization in
Section 309(b) of the Basin Project Act for the primary purpose of
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distributing the project water supply within the service area after said
project water supply has been transported or del ivered through the water
supply system.
5.12 "Agricultural water" or "irrigation waterll shall mean
project water used primarily in the commercial production of agricultural
crops or livestock, including domestic use incidental thereto, on tracts of
land operated in units of more than 5 acres.
5.13 "Mi sce 11 aneous water" shall mean water deli vered from the
project, or by exchange for project water, for recreational and fish and
wildlife purposes at other than project facilities and shall have a lesser
priority of use than agricultural water.
5.14 "Municipal and industrial water," herein referred
to as "M&I water," shall mean project water other than agricultural or
miscellaneous water delivered by means of the project works.
5.15 "lands not having a recent irrigation history" shall
mean, except where otherwi se determi ned by the Secretary for effi ci ency of
subcontractor's operation, lands which the Secretary determines were not
irrigated during the period September 30, 1958, to September 30, 1968.
5.16 "OM&R" shall mean the care, operation, maintenance, and
replacement of project works.
5 .17 "Exchange water" sha 11 mean Co 1 orado Ri ver water made
available in exchange for or in replacement of existing supplies from
surface sources other than the mainstream of the Colorado River.
5.18 "Transferred works" shall mean such facilities of the water
supply system or of other construction stages as to which OM&R
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responsibil ity is transferred from the United States to the Operating
Agency.
5.19 1I0perating Agencyll shall mean the entity or entities
authorized to assume OM&R responsibility of transferred works and approved
for that purpose by the Contracting Officer.
5.20 "Transfer noticell shall mean a written notice or notices,
numbered consecutive ly, whi ch the Contracting Offi cer transmits to the
Operating Agency and which shall designate:
(a) the transferred works;
(b) items of equipment and suppl ies transferred to the
Operating Agency; and
(c) the date upon which such transfer will be effected.
5.21 IIGi 1 a Ri ver system watersll sha 11 mean waters of the
Gila River and tributaries thereof east of the Yuma-Maricopa County line.
5.22 IINotice of comple-tionll shall mean the notice which the
Contracting Officer issues to Contractor to announce the substantial
completion,f a construction stage. Each such notice of completion shall
include the estimated amount of the repayment obligation for the
construction stage to which the notice pertains, the date of initiation of
repayment for the construction stage and indicate the amount and due date
for the first payment for the construction stage.
5.23 "Oevelopment FundI! shall mean the separate fund, known
as the Lower Colorado River Basin Development Fund, established in
the Treasury of the United States pursuant to Section 403(a) of the
Basin Project Act.
5.24 "Yearll shall mean the period January 1 through the next
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succeeding December 31.
5.25 "Contractor I s Con s truct i on Cost Repayment Ob 1 i gat ion;1I
hereinafter referred to as IIrepayment obligation,lI shall mean the total
amount of all construction costs including related construction claims and
interest thereon, OM&R costs during construction, and interest on costs
allocated to the M&I water and power functions during construction, of the
Central Arizona Project, incurred therefor and as determined by the
United States and further described in Article 6.2 hereof, excluding
reimbursable costs allocated to fish and wildlife and recreation, and costs
associated with the delivery of water to entities other than the Contractor
or subcontractors, and which is determined by the Secretary, after
consultation with the Contractor, to be allocable to and repayable by the
Contractor in accordance with the provisions of the Basin Project Act and
this contract.
5.26 "Return flowll shall mean all agricultural, M&I, and
mi sce 11 aneous waste water, seepage, and ground water whi-ch ori gi nates or
results from water contracted for from the Central Arizona Project, but
shall not include any water delivered through the project works for ground
water recharge purposes.
5.27 IIProject water" shall mean (a) all water allocated by the
Secretary for project purposes by Federal Reqister notice dated
March 24, 1983, and any subsequent reallocation by the Secretary as
contemplated in paragraph 6 of said Federal Reqister notice, which water is
available pursuant to contracts with the Secretary from: (1) the
Colorado River; (2) Central Arizona Project dams and reservoirs; and (3)
return flows captured by the Secretary for project use; (b) any water
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delivered to entities in Arizona, through the project works, as a
replacement supply for Cliff Dam; (c) water delivered to water users in
Arizona, through the project works, in exchange for water delivered to users
in New Mexico from or by means of the project works; and (d) any additional
wa ter not i nc 1 uded in (a) above, that is requi red to be de 1 i vered by the
Secretary through the project, pursuant to the Ak-Chin Water Rights
Settlement Act of 1978 (Publ ic Law 95-328), as amended on October 19, 1984
(Public Law 98-530); the Southern AriLOna Water Rights Settlement Act of
October 12, 1982 (Title III of Public Law 97-293); and, subject to the
execut 1 on of a settlement agreement by the Contractor providi ng for the
settlement of the water rights claims of the Salt River Pima-Maricopa Indian
Community and to the Salt River Pima-Maricopa Indian Community Water Rights
Settlement Act of 1988 (Public Law 100-512), up to 22,000 acre-feet annually
of Colorado River water to be del ivered through the project works in
accordance with said settlement agreement and legislation.
5.-28 IIIndian lands" shall mean the lands within any Indian
reservation for which an allocation of project water has or will be made by
the Secretary for delivery through project works.
5.29 "Navajo Project" shall mean the interests of the United
States in the Navajo Generating Station and the Transmission System, or any
replacement thereof, as authorized by Section 303 of the Basin Project Act
and as described in contracts entered into pursuant to that Act.
5.30 "Construction stage" shall mean anyone of the following:
( 1) the water supply system; (2) New Wadde 11 and Modi fi ed Roosevelt Dams;
(3) replacement features or programs for Cliff Dam; (4) Tucson terminal
storage; (5) Hooker Dam or suitable alternative; and (6) Buttes Dam.
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5.31 "Plan 6" shall mean Plan 6 for the Regulatory Storage
Division of the Central Arizona Project as approved by Record of Decision
of the Secretary dated April 3, 1984 as amended and supplemented by Records
of Decision of the Secretary dated May 20, 1986 (Supplement One) and
June 17, 1988 (Supplement Two).
5.32 "Allocable cost" shall mean (a) with respect to the project,
the total project cost less (1) the cost of non-Indian distribution works,
(2) the cost of the safety of dams component of Plan 6, (3) the cost of
Indian distribution systems, (4) the cost of the Colorado River Division and
the New Mexico fish hatchery, (5) the cost of cultural resources studies,
(6) the contributions provided by the States of Arizona and New Mexico prior
to execution of the Plan 6 Funding Agreement, (7) the costs of Charleston
Dam and San Pedro Aqueduct, (8) the cost of 500 cubic feet per second of
incremental capacity in the Granite Reef Aqueduct and related costs in the
Navajo Project, and (9) such other costs as determined appropriate by the
Contracting Officer; and (b) with respect to each construction stage, the
total cost of such stage less that portion of the following costs associated
with such stage: (1) the cost of the safety of dams component of Plan 6,
(2) the cost of cultural resources studies, (3) the contributions provided
by the States of Arizona and New Mexico prior to execution of the Plan 6
Funding Agreement, (4) the cost of 500 cubic feet per second of incremental
capacity in the Granite Reef Aqueduct and related costs in the Navajo
Project, and (5) such other costs as determined appropriate by the
Contracting Officer.
5.33 1I0M&R Transfer Contract" shall mean the August 5, 1987,
contract entitled IIContract Between the United States of America and the
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Central Arizona Water Conservation District for the Transfer of Operation
and Ma i ntenance of Faci 1 it i esll (Contract No. 7-07-30-W0167), and any
amendment or revision thereof.
5.34 "Overall repayment peri ad" shall mean the peri od of time
beginning with initiation of repayment of the first construction stage and
ending with final payment of the last construction stage.
5.35 IlPlan 6 Funding Agreementll shall mean the April 15,1986,
agreement entitled IlAgreement Among the United States, the Central Arizona
Water Conservation District, the Flood Control District of Maricopa County,
the Salt River Agricultural Improvement and Power District and Salt River
Valley Water Users' Association, the Arizona Cities of Chandler, Glendale,
Mesa, Phoenix, Scottsdale, and Tempe, the State of Arizona, and the City of
Tucson for Fundi ng of Pl an Six Facil it i es of the Centra 1 Ari zona Project,
Arizona, and for other Purposes," as it may be supplemented or amended.
5.36 "Permanent service" shall mean that water supply service
commencing in the year following substantial completion of the water supply
system and continuing in perpetuity.
5.37 "Ground water recharge" shall mean the recharge of water
pursuant to title 45, chapter 2, article 13, Arizona Revised Statutes, or
the underground storage and recovery of water pursuant to title 45,
chapter 3, Arizona Revised Statutes, or as said statutes may hereafter be
amended or revised.
5.38 IIProject power" shall mean the United States' entitlement
to capacity and energy from the Navajo Project.
6.
PROJECT CONSTRUCTION
6.1 Aqreement of the United State s.
Subject to the terms and
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conditions of this contract and within the limits of the funds made
available therefor by Congress, the United States will expend toward the
3 construction of the project, exclusive of interest costs during
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construction, $832,180,000 based on 1967 cost estimates, plus or minus such
amounts, if any, as may be justified by reason of ordinary fluctuations in
construction costs as indicated by engineering cost indices applicable to
the types of construction involved therein, or so much of such amount, as in
the opi nion of the Secretary, is necessary to construct said project,
whichever amount is the lesser. The aforementioned amount includes the
United States' costs of participation in the Navajo Project.
6.2 Costs of Project.
(a) The estimated construction cost of $832,180,000 for the
project, based upon 1967 prices, has been determined as follows:
Main System
Granite Reef Division
Orme Division
Salt-Gila Division
Tucson Aqueduct (Colorado River source)
Buttes Dam
Navajo Project
Subtotal
Other Separate Features
Hooker Dam or suitable alternative
Charleston Dam and San Pedro Aqueduct
(San Pedro River source)
Subtotal
Miscellaneous Features
*Gila River Division
Indian Distribution System
Colorado River Division
Drainage System
Subtotal
Total Project
$ l,OOO's
407,740
42,340
47,170
46,300
35,240
106,000
684,790
31,730
36,420
68,150
5,250
19,970
42,450
11,570
79,240
$832, 180
*Note:
Fish hatchery costs, some of which may be located on the
Colorado--River.
Provided, however, That (i) the adjustment provisions of Article 6.1 apply
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to the total construction costs of the project and not to the costs of the
individual line items set out in this Subarticle 6.2(a), and (ii) in
accordance with provisions of Article 6.4 herein, the references to the
individual line items set out in this Subarticle 6.2(a) are not to be deemed
a determination that each of the features referred to in the individual line
items will be constructed or that costs will be incurred for each of said
1ndividual line items based upon a percentage which the estimated costs for
each individual line item bears to the project's total estimated
construction costs.
(b) The Central Arizona Project costs incurred by the
United States which are to be repaid by Contractor shall include the share
allocated to the Contractor of (i) construction costs of the project, (ii)
all expenses of whatsoever kind or nature heretofore or hereafter incurred
by the United States in connection with, growing out of, or resulting from
the construction, and (ii1) the OM&R during construction of project works.
The aforementioned share of allocated costs shall also include, but shall
not be limited to, interest during construction on costs allocated to the
M&I water and power functions, the cost of labor, materials, equipment,
engineering, legal services, surveys, investigations, property,
superintendence, administration, overhead, general expenses, special
services, damages of all kinds and character, inspection, repair, and
protection of project works and water supply, and the costs of all lands,
interests in lands, and rights-of-way acquired by the United States for the
project, all as determined by the Secretary.
6.3 Principal Works of the Project. The works and facilities to
be construct~.untier this contract shall consist of the following principal
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works:
(a) A system of main conduits and canals, including the
Havasu Pumping Plant and a main canal and pumping plants (Granite Reef
Aqueduct and pumping plants), for diverting and carrying water from
Lake Havasu to the confluence of the Salt and Verde Rivers, which system
will have a capacity of 3,000 cubic feet per second;
(b) Salt-Gila Aqueduct and pumping plant;
(c) Tucson Aqueduct and pumping plants;
(d) New Waddell and Modified Roosevelt Dams;
(e) replacement features or programs for Cliff Dam;
(f) Tucson Terminal Storage (if approved by the Secretary);
(g) Buttes Dam and Reservoir;
(h) Hooker Dam and Reservoir or suitable alternative which
shall be constructed in such manner as to give effect to the provisions of
Section 304(f) of the Basin Project Act;
(i) Charleston Dam and Reservoir and the San Pedro Aqueduct;
(j) related canals, regulating facilities, and electric
transmission facilities required for the operation of said principal works;
(k) related water distribution and drainage works; and
(1) appurtenant works.
No works or facilities for the treatment of water are included in the
project works to be constructed by the United States. Nothing contained
herein shall be construed to indicate the order in which the aforedescribed
works will be constructed.
6.4 Chanqes in Project Works. Should the Secretary. either
before or during construction, determine it to be in the best interests of
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the project, he may, upon the completion of the studies currently being made
er to be made, including land classifications, hydrological, engineering,
geological, sedimentation, water supply, and repayment ability, and after
consultation with the Contractor, change the location, size, or capacity of
any of the project works, or may e 1 imi nate works, or add works to those
described above, and the Secretary's decision on such changes,
eliminations, and additions shall be conclusive.
6.5 Construction Conditions. The United States sha 11 be under
no obligation to commence or, having commenced, to continue construction of
project works until transfer from the State of Arizona of such State-owned
lands or interests therein, in a form acceptable to the Attorney General of
the United States, as the Secretary determines is necessary in the
construction, operation, or maintenance of the project.
6.6 Annual Work Proqram. During construction of the project
worKS the Contracting Officer will consult with the Contractor and/or with
any subcontractor through or within whose service area project works are to
be constructed to achieve maximum coordination between such construction
program and the annua 1 programs of any affected subcontractor. Wi thi n
30 days following the enactment by Congress and Presidential approval of
annual or supplementary appropriation acts and the allotment of funds
thereunder for continued construction of the project, the United States will
furnish the Contractor with a notice and statement showing the proposed
construction ~rogram for the balance of the current fiscal year and for the
following fiscal year or years. If so requested in writing by the
Contractor within 30 days of its receipt of such notice, the Secretary will
consult with the Contractor and/or the affected subcontractor with respect
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to the proposed program. The action of the Contracting Offi cer concern i ng
the program after such consultation shall be final.
6.7 Inability of the United States to Complete Project on Basis
of Cost Estimates. If construction of the project works shall have been
commenced but, prior to completion, the Secretary determines that the cost
of constructing the project will exceed the maximum amount to be expended
therefor by the United States as provided for in Article 6.1 hereof, the
Secretary may after consultation with the Contractor terminate construction
and declare the obligations of the United States hereunder with regard to
completion of construction of the project to have been fulfilled. If
appropriations for the continuance and/or completion of construction in
amounts sufficient in the opinion of the Secretary to complete said
construction are authorized by Congress and are available. the Secretary
shall consult with the Contractor and shall make continuation of
construct i on conti ngent upon the execution of an amendatory contract wi th
the Contractor wherei n the Contractor's maximum repayment ob 1 i gat ion is
increased so as to cover the increased reimbursable costs as determined by
the Secretary; Provided, however, That the Contractor shall not utilize any
part of the completed or unfinished project facilities in the absence of
written agreement with the Secretary for reimbursement therefor.
7. PROJECT OPERATION, MAINTENANCE, AND REPLACEMENT
7.1 Operation and Maintenance and Water Deliveries by the
United States Prior to Completion of Construction. Except as provided in
the OM&R Transfer Contract. prior to completion of project works by the
United States, as determined and announced to the Contractor in writing by
the Secretary, the United States will operate and maintain said project
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facilities. The cost of said OM&R allocated to the Contractor shall be
included in the Contractor's repayment obligation; Provided, however, That
said OM&R cost shall not be included with the project cost ceiling s~t out
in Article 6.1 hereof. During the aforesaid period, project water, if
available, may be disposed of by the Secretary at charges which the
Secretary determi nes to be appropri ate; Provided, however, That to the
extent deemed feasible by the Secretary, preference will be given to
subcontractors and Indian lands. Payment for water shall be made in advance
by the water user. The places of measurement and delivery of said water
shall be established by the Secretary after consultation with the
Contractor. Except as provided in the OM&R Transfer Contract, the proceeds
accrui ng from the di spo sa 1 of such water sha 11 be credited to the
Development Fund and applied toward the costs of the project as determined
by the Secretary.
7.2 Operation and Maintenance and Water Deliveries after
Completion of Construction. Except as provided in the OM&R Transfer
Contract and any future agreements for the transfer of OM&R of the project
works or portions thereof, upon completion of construction of a
construction stage or upon completion of construction of the project, the
United States shall operate and maintain such construction stage or the
project and shall make project water available to project water users.
8. DELIVERY OF WATER
8.1 Obliqation of United States. Subject to the terms,
conditions, and provisions set forth herein, the United States will deliver
project water to Contractor and, during such periods as it operates and
maintains the water supply system, the United States will also transport and
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del iver said water to the subcontractors. After transfer of OM&R the
United States will make deliveries of Colorado River water to' the Operating
Agency; deliveries of other project waters will be made pursuant to
determinations made by the Secretary.
8.2 Term of Contract. Subject to the terms, conditions, and
provisions set forth herein, this contract is for permanent service.
8.3 Conditions Relatinq to Delivery.
(a) The obligation of the United States to deliver water
under this contract is subject to:
(1) The ava 11 abll ity of such water for use in Ari zona
under the provisions of the Colorado River Compact,
executed November 24, 1922; the Boulder Canyon
Project Act, 45 Stat. 1057, dated December 21,
1928; the Colorado River Basin Project Act, dated
September 30, 1968, 82 Stat. 885; the contract
between the United States and the State of Arizona,
dated February 9, 1944; the Opinion of the
Supreme Court of the United States in the case of
Arizona v. California et a-l., 373 U.S. 546,
rendered June 3, 1963; and the March 9, 1964,
Decree of that Court in said case, 376 U.S. 340, as
amended on February 28, 1966, at 383 U.S. 268, and
supplemented on January 9, 1979, at 439 U.S. 419,
as now issued or hereafter modified.
(ii) Executive A, Seventy-eighth Congress, Second
Session, a treaty between the United States of
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America and the United Mexican States, signed at
Washington on February 3, 1944, relating to the
utilization of the water of the Colorado River and
Tijuana River and of the Rio Grande from
Fort Quitman, Texas, to the Gulf of Mexico, and
Executive H, Seventy-eighth Congress,
Second Session, a protocol signed at Washington on
November 14, 1944, supplementary to the Treaty.
(ii1) The express understanding and agreement by the
Contractor that thi s contract is subject to
the condition that Hoover Dam and lake Mead shall
be used: first, for river regulation, improvement
of navigation, and flood control; second, for
irrigation and domestic uses and satisfaction of
present perfected rights in pursuance of
Article VIII of the Colorado River Compact approved
by Section 13(a) of the Boulder Canyon Project Act;
and third, for power; and furthermore, that
this contract is made upon the express condition
and wi th the express covenant that a 11 ri ghts
hereunder shall be subject to and controlled by the
Colorado River Compact and that the United States
and the Contractor shall observe and be subject to
and controlled by sa id Co 1 orado Ri ver Compact and
Boulder Canyon Project Act in the construction,
management, and operation of Hoover Dam,
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lake Mead, canals and other works, and the
s tor age, d i v e r s ion, del i very, and use 0 f wa t e r
to be delivered to Contractor hereunder.
(iv) The right of the United States temporarily to
discontinue or reduce the amount of water to be
delivered hereunder whenever such discontinuance or
reduction is made necessary for purposes of
investigations, inspections, replacements,
maintenance, or repairs to any works whatsoever
affecting, utilized or, in the opinion of the
Secretary, necessary for del ivery of water
hereunder, it being understood that so far as
feasible the United States will (1) do so during
periods of low water demands and (2) give
reasonable notice in advance of such temporary
discontinuance or reduction.
(b) Delivery of Colorado River water by the United States
under this contract shall be charged to the State of Arizona's apportionment
under the aforementioned Supreme Court Decree of March 9, 1964, in
Arizona v. California and will discharge to that extent the obligation of
the United States to deliver water under the aforementioned contract between
the United States and the State of Arizona, dated February 9, 1944.
8.4 Delivery Points. Colorado River water to be furnished
to the Contractor pursuant to this contract will be delivered by the
United States in the Colorado River at the point of diversion from
lake Havasu where the intake structures of the Havasu Pumping Plant are
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constructed. Agua Fda and Upper Gila River system waters will be
delivered to the Contractor at New Waddell and Buttes Dams, respectively.
Delivery points for other project water supplies and for return flows will
be determined by the Contracting Officer after consultation with the
Contractor and/or the affected subcontractor therefor.
8.5 Measurement.
(a) The quantity of Colorado River water pumped from
Lake Havasu for the project shall be measured by means of measuring devices
to be installed as part of the project works. If, for any reason, in the
opinion of the Secretary, said measuring devices shall fail to operate
sat i sfactorily, the Secretary will, from the best i nformat ion ava 11 abl e,
estimate the amount of water delivered to the Contractor.
(b) Deliveries of project water to the various
subcontractors shall be measured by means of measuring devices to be
installed as part of the project works at the points along the various
aqueducts at which such water may be diverted for each of said
subcontractors, and/or at the points in the various reservoirs formed by the
dams constructed as part of the project works at which such water may be
diverted for subcontractors and/or at the points where return flow may be
delivered. These points of measurement will be established by the Secretary
after consultation with Contractor and the affected subcontractor. If, for
any reason, in the opinion of the Secretary, said measuring devices shall
fail to operate satisfactorily, the Secretary will, from the best
information available and after consultation with the Contractor and the
affected subcontractor, estimate the amount of water delivered to each such
subcontractor. The Secretary shall at all times have access over any lands
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and rights-of-way of a subcontractor for the purpose of inspecting and
checking said measuring devices.
8.6 Responsibility for Distribution of Water after leavinQ
Water Supply System. Whether or not the United States operates and
maintains the project facilities, the United States shall not be responsible
for the control, carriage, handling, use, disposal, or distribution of water
after said water has been diverted from the water supply system. At such
time as the Operating Agency assumes responsibility for the OM&R of project
works, the responsibil i ty for diversi on, carri age, and transportation of
the water through the water supply system shall be the sole responsibility
of the Operating Agency. Responsibility for distribution of water beyond
the water supply system shall be that of the subcontractors to whom said
water is delivered from the water supply system. The United States, its
officers, agents, and employees, shall not be liable for damage or claim of
damage of any nature whatsoever for which there is legal responsibility
arising out of or connected with the control, carriage, handling, use,
dispos<1l, or distribution of such water, and each subcontractor shall hold
the United States, its officers, agents, and employees, harmless from any
and all such claims.
8.7 Quantity of Water to be Delivered.
(a) The Secretary reserves the right to determine that
quantity of Colorado River water to be released each year from lake Mead for
use by the Central Arizona Project pursuant to applicable law, which shall
include the quantity of water which may be allocated by the Secretary for
use on Indian lands.
{b) The quantity of Colorado River water available under
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thi s contract for project purposes sha 11 not exceed the quantity of water
available to Arizona under the aforementioned Supreme Court Decree in
Arizona v. California and in Arizona's water delivery contract with the
United States after first providing for satisfaction of:
(1) pre sent perfected ri ght s and perfected ri ghts
described in Article lI(D) of the Decree and the
rights of other Federal reservations established
prior to September 3D, 1968; Provided, however,
That the quantities of Colorado River water
reserved to satisfy the aforesaid rights shall not,
except as provided in said Decree, be reduced
under any ci rcumstances or for any reason what-
soever including, without limitation, a temporary
use permitted by the Secretary by other water users
in Arizona, California, or Nevada, of water
reserved pursuant to the foregoi n9 but not
needed during any calendar year; And provided
further, That no rights to the recurrent use of
such water shall accrue by reason of said temporary
use; and
(i1) the quantities of water provided for in all
water del ivery contracts between the United States
and water users in Arizona as of September 30,
1968.
(c) The quantity of Colorado River water available under
this contract for project purposes, including water for use on Indian lands
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shall have the same priority as to delivery as the quantities of
Colorado River water delivered pursuant to water delivery contracts,
"Federal reservations of water, and other arrangements between the
United States and water users in Arizona entered into subsequent to
September 30, 1968, for use of Colorado River water on Federal, State or
privately owned lands in Arizona in total quantities not to exceed
164,652 acre-feet of diversions per year; Provided, however, That the
Contractor shall hold the United States, its officers, agents, employees,
and successors or assigns, harmless as to any and all claims for damages to
persons or to property direct or indirect and of whatever nature, arising
out of or whi ch may in any manner be connected with the operation and/or
eff~ct of this Subarticle.
(d) The limitation on contracting in Subarticle a.7(c) above
sha 11 not apply to contracts with holders of present perfected rights to
Colorado River water in Arizona or to the Secretary's order of
November 24, 1982, reserving Colorado River water for the Cibola National
Wildlife Refuge. Nothing in Subarticle 8.7(c) shall restrict the right of
the Secretary under water service contracts referred to in said Subarticle
to terminate and/or reduce any entity's entitlement to Colorado River water
and to make that entitlement available to other water users in Arizona.
(e) During any year when the subcontractors cannot use any
portion of their entitlement to project water, and such water cannot be
resold Qr exchanged in accordance with the terms and conditions of the water
service subcontracts, the Contractor shall have the right in its discretion
to rese 11 any or a 11 of such water or to use any or a 11 of such water for
ground water recharge purposes, including the subsequent recovery and resale
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of such water, subject to Federal law, including but not limited to the
Reclamation Reform Act of 1982, State of Arizona law, and such rules and
regulations as the Secretary may deem appropriate. Subject to the terms and
conditions of water service subcontracts, the water orders of all
subcontractors shall be met before any project water is made available to
the Contractor under this provision.
8.8 Subcontracts.
(a) The United States shall be a party to subcontracts.
(b) The Secretary and the Contractor shall require in each
subcontract that:
(i) unless and until otherwise provided by Congress,
water from the Central Ari zona Project shall not
be made available directly or indirectly for the
irrigation of lands not having a recent irrigation
history, as determined by the Secretary, except in
the case of Indian lands, national wildlife
refuges, and, with the approval of the Secretary,
State-administered wildlife management areas;
(if) there be in effect measures, adequate in the
judgment of the Secretary and the Contractor,
to control expansion of irrigation. from aquifers
affected by irrigation in the Contractor1s service
area and to reduce pumping of ground water in the
agricultural subcontractors! service areas by the
amount of project water received by said
agricultural subcontractors;
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(iif) the canals and distribution systems through which
water is conveyed after its del ivery to the sub-
contractors shall be provided and maintained with
linings adequate in the Secretary's judgment to
prevent excessive conveyance losses;
(iv) neither the Secretary, the Contractor nor any
subcontractor shall pump or permit others to pump
ground water from within the exterior boundaries of
the service area of a subcontractor receiving
water from the Central Arizona Project for any use
outside of said subcontractor's service area
unless the Secretary, the Contractor, and such
subcontractor shall agree, or shall have previously
agreed, that a surplus of ground water exists and
that drainage is or was required;
(v) except as otherwise agreed by the Contracting
Officer, neither the Contractor nor any
subcontractor shall sell or otherwise dispose of or
permit the sale or other disposition of any project
water, including return flows, for use outside the
Contractor's service area;
(vi) i rr i ga t ion wa ter made a va i 1 ab 1 e thereunder may
be made available by the Secretary for M&I purposes
if and to the extent that such water is no longer
required by the subcontractor for irrigation
purposes and shall be made available in all cases
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where lands receiving project water have been
converted to municipal and industrial use;
Provided, however, That subcontracts effectuating
such transfers are subject to the approval of the
Secretary and the Contractor, which approval shall
not be wtthheld unreasonably; And provided further,
That it shall be deemed unreasonable for the
Secretary or the Contractor to withhold such
approval on the basis that the right to convert
fro m i r rig at f 0 n to M& Ius e for asp e c i f i c
development could better be exercised in some other
subcontractor's ~rvice area. The water so
converted from irrigation to M&I purposes will be
delivered with the same priority and at the same
rate per acre-foot as other M&I water. L i kewi se,
subcontracts for furni shing water for M&I
purposes, including, but not limited to, ground
water recharge to the extent ground water recharge
is consistent with Arizona law, shall provide that.
if water to be delivered thereunder is not
presently required for such purposes, such water
may be made ava i 1 ab 1 e by the Secretary to other
users; Provided, further, That the subcontractor
shall be relieved of its payment obligation under
its subcontract only to the extent of the amount
paid by such other users;
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(vii) the acreage limitation provisions of Reclamation
Laws shall apply solely to agricultural water
servi ce;
(viii) except as specifically provided therein, it shall
be the provisions of this contract which shall be
controlling in the event of any inconsistency
between this contract and any subcontract;
(ix) the subcontractor shall levy all necessary asSBSS-
ments, toll s, and other charges and shall use all
of the authority and resources available to the
subcontractor to collect the same in order that the
subcontractor may meet its ob ligat ions thereunder
to make in full all payments required under said
subcont ract on or before the date such payments
become due and to meet other obligations under the
subcontracts;
(x) the subcontractor establish, maintain, and provide
the United States and the Contractor with land,
water use, and crop census records.
8.9 Shortaqes. As provided in Section 301(b) of the Basin
Project Act, Article 11(8)(3) of the Decree of the Supreme Court of the
United States in Arizona v. California, 376 U.S. 340, dated March 9, 1964,
shall be so administered that in any year in which, as determined by the
Secretary, there is insufficient mainstream Colorado River water available
for release to satisfy the annual consumptive use of 7,500,000 acre-feet in
Arizona, California, and Nevada, diversions from the mainstream of the
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Colorado River for the Central Arizona Project and for other uses in Arizona
under contracts or other agreements with the United States executed
subsequent to September 30. 1968, shall be so limited as to assure
the availability of water in quantities sufficient to provide for
the aggregate annual consumpt he use by holders of present perfected
rights. by other users in the State of Ca1 Hornia served under contracts
existing as of September 30, 1968. with the United States by diversion works
heretofore constructed. and by other Federal reservations in California of
4,400,000 acre-feet of Colorado River water, and by users of the same
character in Arizona and Nevada. Water user~ in the State of Nevada shall
not be required to bear shortages in any proportion greater than would have
been imposed in the absence of said Section 301(b). nor shall said Section
affect the relative priorities. among themselves, of water users in Arizona,
California. and Nevada which are senior to diversions for the Central
Arizona Project. or amend any provisions of said Decree. The aforesaid
limitation stated in Section 301(b) shall not apply so long as the
Secretary shall determine and proclaim that means are available and
in operation which augment the water supply of the Colorado River system in
such quantity as to make sufficient Colorado River mainstream
water available for release to satisfy annual consumptive use of
7,500,000 acre-feet in Arizona, California. and Nevada.
8.10 Rate of Diversions of Colorado River Water. Subject to
(a) the first proviso in Section 301(a) of the Basin Project Act, (b) the
provisions of Subartic1e lO.6(b) hereof, and (c) the provisions of
Subarticle 8.l(a) hereof. any capacity in the Granite Reef Aqueduct in
excess of 2,500 cubic feet per second may be utilized in the operations of
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the project so as to maximize project benefits; Provided, however, That the
use of such capacity shall not result in the annual diversion of a quantity
of water in excess of the project's legal entitlement under the Basin
Project Act.
8.11 Priority in Case of Shortaqe.
(a) Subject to the provisions of Section 304(e) of the Bas;n
Project Act and the Secretary's allocation decisions published in the
Federal Reqister on December 10, 1980, and March 24, 1983, any project water
as defined in Subarticle 5.27(a) hereof, furnished through project
facilities shall, in the event of shortages thereof, be reduced pro rata
until exhausted, first for miscellaneous uses and next for agricultural
uses, before such project water furnished for M&I uses is reduced.
Thereafter, such project water for M&I uses will be reduced pro rata among
all M&I water users. Each subcontract or other water delivery arrangement
entered into pursuant to this contract shall so provide. This article shall
not apply to Indian uses; Provided, however, That the relative priorities
.. between Indian and non-Indian uses shall be as determined by the Secretary.
Notwithstandi ng the provi s ions of thi s Subart i cl e, project water made
available as a result of construction and operation of modifications to
Roosevelt Dam as part of Plan 6 shall be distributed as provided in the
Plan 6 Funding Agreement, and shall not be subject to reduction in the event
of shortages of other project water supplies.
(b) Any project water, as defined in Subarticles 5.27(b),
(c) and (d) hereof, shall retain its priority relative to project water as
defined fn Subarticle 5.27(a) hereof.
8.12 No Guarantee of Availability of Water. The United States
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assumes no responsibility with respect to the quantity of water available
for delivery pursuant to this contract. In no event shall the
United States, its officers, agents, or employees, be liable for any
damages, direct or indirect, of whatsoever nature, arising out of or in any
way connected with any suspension or reduction in the delivery of water
pursuant to thf s contract or wi th any shortage f n the quantity of water
ava i 1 ab 1 e for delivery hereunder or to any subcontractor for any cause
whatsoever including, but not limited to, drought, delay in the construction
of the Navajo Project, the failure of the Navajo Project to be completed, or
the lack of power for pumping.
8.13 Secretarial Control of Return Flow.
(a) The Secretary reserves the right to capture all return
flow flowing from the exteriOf.~oundaries of the Contractor as a source of
supply and for distribution to and use of the Central Arizona Project to the
fullest extent practicable. The Secretary also reserves the right to
capture for project use return flows within the boundaries of Contractor if
in his judgment such return flow is not being put to a beneficial use. Any
subcontractor may sell its return flow; Provided, however, That except as
otherwi se agreed by the Contracting Officer, such return flow may not be
sold for use outside the Contractor's exterior boundaries; And provided
further, That if the price received for such return flow is higher than the
price paid for such project water, the amount of the excess price shall be
paid by such subcontractor to the Contractor for appl ication against the
Contractor's repayment obligation to the United States.
(b) Any return flow captured by the Un; ted States and
determi ned by the Secretary to be suitable and ava il ab 1 e for use on 1 ands
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within the service area and/or by any subcontractor therein may be delivered
by the United States to a subcontractor as a part of the water supply for
whi ch the subcontractor contracts hereunder and such water shall be
accounted and paid for pursuant to the provisions hereof.
8.14 Water and Air Pollution Control. The Contractor, in
carrying out this contract, shall comply with all applicable water and air
pollution laws and regulations of the United States and the State of
Arizona, and shall obtain all required permits or licenses from the
appropriate Federal, State, or local authorities.
8.15 Quality of Water. The operation and maintenance of
project facilities shall be performed in such manner as is practicable to
maintain the quality of project water made available through such
facilities at the highest level reasonably attainable as determined by the
Contracting Officer or the Operating Agency. Neither the United States nor
the Operating Agency warrants the quality of water and are under no
obligation to construct or furnish water treatment facilities to maintain
or better the quality of water.
8.16 Exchanqe Water. Where the Secretary determines that a
subcontractor is physically able to receive Colorado River mainstream water
in exchange for or in replacement of existing supplies of surface water from
sources other than the Colorado River to provide water supplies for users
upstream from New Waddell, Modified Roosevelt and Buttes Dams, the
Secretary may require that said subcontractor agree to accept said
mainstream water in exchange for or in replacement of said existing supplies
pursuant to the provisions of Section 304(d) of the Basin Project Act.
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8.17 Riqhts Reserved to the United States to Have Water Carried
by Project Facilities. As a condition to the construction of project
facilities and the delivery of water hereunder, the Contractor agrees that
all project facilities will be available for the diversion, transportation,
and carri age of water for lndi an and non-lndi an uses pursuant to
arrangements or contracts therefor entered into on thei r beha 1f with the
Secretary. In the event the responsibility for the OM&R of project
facilities is transferred to and assumed by the Operating Agency, such
transfer shall be subject to the condition that the Operatlng.~gency shall
di vert, transport, and carry such water for such uses pursuant to the
provi sions of the aforesaid arrangements or contracts; Provided, however,
That the aforesaid arrangements or contracts will include provisions for the
payment of applicable construction costs and OM&R costs in accordance with
Articles 9.3 and 9.6 of this contract.
8.18 Wheelinq Non-Project Water. After taking into
consideration the water delivery requirements of contracts for project water
servi ce and subject to ava 11 abil ity of project capacity, non-project water
may be wheeled through project facilities pursuant to wheeling agreements
between the Contractor and the entity desiring to use project facilities for
wheeling purposes. All such agreements shall be subject to the approval of
the Contracting Officer who shall consider, among other things, the impact
that the wheeling of such non-project water will have on the quality of
project water. The Contractor and the Contracting Officer shall jointly
develop a standard form of wheeling agreement including the rate structure
for wheeling non-project water. All wheeling charges shall be paid to the
Contractor by the entity contracting for the wheeling of non-project water.
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The Contractor shall be entitled to retain revenues from wheeling charges
sufficient to cover all OM&R costs associated with wheeling such non-project
water, plus an administrative charge to be jointly determined by the
Contractor and the Contracting Officer. All revenues from wheeling charges
in excess of the OM&R costs and administrative charges shall be remitted by
the Contractor to the Contracting Officer and deposited into the
Development Fund.
8.19 Use of Project Power to Wheel Non-Project Water. If the
energy requirements necessary for the pumping of project water are met and
subject to the requirements of the Navajo Power Marketing Plan published in
the Federal Reqi ster on December 21, 1987, project power may be used to
wheel non-project water through project facilities under such conditions of
use, including amounts, times of use, losses, costs, and other conditions as
are established by the Contractor and approved by the Contracting Officer.
9. PAYMENT OF PROJECT COSTS ALLOCATED TO CONTRACTOR
9.1 Allocation of Construction Costs.
(a) Upon completion of each construction stage, the
Contracting Officer will allocate costs to the various project purposes
using the separable costs-remaining benefits procedure.
(b) For repayment purposes the reimbursable cost allocated
to irrigation and M&I water by the separable costs-remaining benefits
procedure will be combined and will hereinafter be termed the "water supply
allocation." Upon completion of each construction stage, and at the
periodic intervals specified in Subarticle 9.3(d), suballocation of the
water supply allocation will be made to the irrigation and M&I water
functions proportional to the water estimated to be used for each purpose
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during the repayment period of each construction stage.
The cost thus
2 suballocated to the irrigation function will hereinafter be termed the
3 "interest-free allocation." The cost thus suballocated to the M&I water
4 function shall be added to the cost allocated to the commercial power
5 function, plus interest during construction for both, and the sum wl1l
6 hereinafter be termed the Uinterest-bearing allocation."
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( c)
During construction, simple interest at the rate of
3.342 percent per annum shall be charged on costs allocated to the interest-
bearing function as adjusted by the Secretary (i.e., net disbursements
reduced by contract holdbacks, revenues applied to construction cost, and
nonreimbursable expenses financed from construction funds).
The tot a 1
amount of all interest thus accumul ated through the construction peri od
. .
prior to the date of completion of each construction stage shall be added to
and become part of the actual construction cost of each construction stage.
Interest during construction shall not accrue during any period in
which construction is deferred or postponed by the United States as a result
of a national emergency, as determined by the -Secretary, if authority to
forego such interest exists or is made available to the Secretary.
9.2 Repayment Concepts.
(a) Costs suballocated to non-Indiafl irrigation water will
be paid by the subcontractors to the Contractor on the basis of their
ability to pay as determined by the Secretary.
(b)
Costs allocated to commercial power and costs
suballocated to M&I water use shall be combined and repaid with interest at
a rate of 3.342 percent per annum on the unpaid balance.
(c)
Reimbursable costs allocated to recreation and fish
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and wildlife are anticipated to be covered by a separate contract and repaid
by the beneficiaries thereof.
(d) Repayment of costs allocated to irrigation of Indian
lands shall be governed by the provisions of Section 402 of the
Basin Project Act.
(e) Repayment of the project will occur by construction
stages, with each stage having a separate 50-year repayment schedule. Upon
completion of each cost allocation study referred to in
Subarticle 9.1(a), subsequent to the initial study associated with the
first construction stage, the Contractor's repayment obligation and the
obligation allocated to each construction stage will be adjusted based on
the latest cost allocation study, and the Contractor will be provided with a
revised repayment schedule for the project and each construction stage. The
Contracting Officer will adjust previous principal and interest payments
made by the Contractor to refl ect the new repayment schedul e. For each
year where an adjustment in payments is necessary, there will be an over or
underpayment which will accrue with interest at the rate of 3.342 percent
per annum (compounded annually) to the adjustment date. If the adjustment
indicates that the Contractor overpaid principal and interest, the
Contractor sha 11 be ent it 1 ed to a credit aga i nst its next payments to the
United States. Conversely, if the Contractor owes additional principal and
interest to the United States, such amount shall be paid to the United
States by the Contractor within 12 months of receipt of a statement therefor
from the Contracting Officer. The Contractor may use the repayment reserve
fund under Subarticle 10.3(b) hereof for any payment to the United States
required as a result of the above adjustment.
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9.3 Contractor1s Construction Cost Repayment Obliqation.
(a) The Contractor1s repayment obligation shall consist of
the total cost allocated to the water supply and power functions plus OM&R
during construction and interest during construction on costs allocated to
the M&I water and power functions, but shall not include costs allocated to
fish and wildlife and recreation, and costs associated with the delivery of
water to entities other than the Contractor or subcontractors. Such
entities shall include but not be limited to Indian tribes and councils in
central Arizona receiving project water and the New Mexico recipients of
water service from Hooker Dam or suitable alternative. The costs to be
excluded shall be calculated as follows:
(i) Costs excl uded from the Contractort s repayment
obligation for New Mexico water service shall be
determined by multiplying the project costs
allocated to the water supply function by the ratio
developed by dividing the quantity of project water
proj ected to be de 1 i vered throughout the overa 11
repayment period to water users in Arizona
in exchange for water del ivered to users
in New Mexico from or by means of project
works, by the total quantity of Colorado River
water projected to be delivered by the project
throughout the overall repayment period.
(ii) The amount of other project costs which shall
be excluded from the Contractor I s repayment
obl igation shall be determined by multiplying the
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project costs allocated to the water supply
function by a ratio developed by dividing the
quantity of project water projected to be delivered
throughout the overall repayment period to entities
other than the Contractor, the subcontractors, and
those users in New Mex i co to whom water has been
made available through the construction of
Hooker Dam or suitable alternative by the
tota 1 quantity of project water projected to be
de 1 i vered throughout the overa 11 repayment peri ad;
Provided, That project water projected to be
delivered to such users will be computed based on
an assumption of full development not later than
the year 2005.
(b) The costs determined under Subarticles 9.3(a)(i) and
(ii) above shall be subtracted from the water supply costs obtained from the
separab 1 e costs-rema i ni ng benefi ts procedure to determi ne the Contractor's
water supply costs. The Contracting Officer shall suballocate the
Contractor's water supply costs to each of the construction stages based on
the ratios obtained by dividing the allocable cost of the construction stage
by the allocable cost of the project (see Operation 1, Exhibit lIAn). The
water supply costs assigned to each construction stage are then further
suballocated between irrigation and M&I water use in proportion to projected
total water deliveries to each function over the 50-year repayment period of
each construction stage (Operation 2, Exhibit "All). The summarization of
the suballocations to each construction stage determines the total water
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supply cost to be assigned to irrigation and M&I water use (Operation 3,
Exhibit "A"). To determine the Contractor's repayment obligation, the
Contractor's water supply suballocation to irrigation and M&I water uses,
and the power allocation from the separable costs-remaining benefits
procedure, sha 11 each be adjusted for any revenues received by the
United States prior to the notice(s) of completion and for any contributions
received by the United States under the Plan 6 Funding Agreement for the
features constructed in that stage) and for the 500 cubic feet per second of
incrementa 1 capacity in the Granite Reef Aqueduct and pumpi ng plants (see
Article 9.7) to determine the net amount of each function assigned to the
Contractor (Operation 4, Exhibit "AII). The Contractor's repayment
obligation shall be the summation of the net amount for each function.
(c) Once the Contractor's estimated or final repayment
obligation has been determined by the Contracting Officer, the obligation
shall be allocated to each construction stage based on the ratio obtained by
dividing the allocable cost of each construction stage by the allocable cost
of the project. Each construction stage will have a separate 50-year
repayment period. The repayment obl igation for each stage will be divided
into i nteres t-bea ri ng and interest-free components. The interest-free
component shall be the amount allocable to irrigation purposes for the
stage. The interest-bearing component will be the amount obtained by
subtracting the irrigation allocation for the stage from the obligation for
the stage. The principal payments for each stage shall be determined by
applying the percentages in Subarticle 9.3(f) to the repayment obligation
for each stage. The total payment for each stage for any year shall be
equal to the principal payment plus interest at the rate of 3.342 percent
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per annum on the unpaid interest-bearing component of the repayment
obligation for each stage. For the water supply system, the portion of each
principal payment which is made by the Contractor from irrigation revenues
received by the Contractor each year will be used by the United States to
reduce the interest-free obligation. The remaining portion of the principal
payments made by the Contractor each year for the water supply system will
be used by the United States to reduce the interest-bearing obligation, and
once the interest-bearing obligation has been retired, the entire principal
payment made by the Contractor will be applied by the United States toward
the interest-free obligation. For the other construction stages, the entire
principal payment made by the Contractor each year for such stages will be
applied by the United States to reduce the interest-bearing obligation
first, and once such obligation has been retired, to reduce the interest-
free obligation.
(d) At 7-year intervals following the determination of the
Contractor's repayment obligation for the water supply system, or at more
frequent intervals if it becomes apparent to the Contracting Officer that a
s i gnifi cant change in water use has or wi 11 occur, unt i1 such time as the
interest-bearing obligation for each construction stage has been repaid, the
Contracting Officer will re-estimate the proportions of total water
deliveries to irrigation and M&I water use over the 50-year repayment period
for each stage. At such intervals, the Contracting Officer will adjust the
original interest-bearing and interest-free allocation for each stage based
on the new estimates and recalculate all preceding interest payments.
Differences between amounts owed and amounts paid by the Contractor shall be
adjusted by the Contracting Officer, who shall apply a credit against the
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Contractor's next payment due or notify the Contractor of the additional
amount due, as the case may be. All such adjustments shall include interest
at the rate of 3.342 percent per annum (compounded annually). Any
additional payments required from the Contractor shall be made within
12 months of the Contractor's receipt of a statement from the Contracting
Offi cer therefor. The Contractor may use the repayment reserve fund under
Subarticle 10.3(b) hereof for any payment to the United States required as a
result of the above adjustment.
(e) The Contracting Officer will notffy the Contractor of
(i) its estimated repayment obligation when construction of the first
construction stage is substantially complete and upon completion of each
subsequent construction stage, and (ii) the actual repayment obligation when
the final construction stage has been completed, as determined by the
Contracting Officer. In the event that the project ultimately consists only
of the water supply system, New Waddell Dam, and Modified Roosevelt Dam, the
Contractor's actual repayment obligation shall be limited to $2.0 billion.
If pri or to comp 1 eti on of construction of such features the Contracting
Officer determines that the Contractor's repayment obl igation for such
features will exceed $2.0 billion, the Contracting Officer shall consult
with the Contractor and continuation of construction will be contingent upon
the execution of an amendatory contract to cover the increased repayment
obligation. If construction of any other constru~tion stage will result in
an increase in the Contractor's repayment obligation by an amOlJnt equal to
or less than the respective amount identified in Exhibit "B," which is
attached hereto and made part of this contract, the Contractor's repayment
ceiling may, after consultation with the Contractor, be increased by the
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1 Contracting Officer by an amount equal to or less than the respective amount
2 identified in Exhibit "8" by written notice thereof from the Contracting
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Offi cer to the Contractor.
If construction of such other construction
stage will result in an increase in the Contractor's repayment obligation
by an amount greater than the respective amount identified in Exhibit ~B,"
the Contracting Officer shall consult with the Contractor and the
Contractor and the Contracting Officer shall agree upon one of the
following courses of action prior to initiation of construction of such
construction stage: (1) that additional repayment ceiling be made available
from other construction stages, in which event the Contractor's repayment
ceiling will be increased to the agreed-to amount by written notice from
the Contracting Offi cer to the Contractor; or (2) that thi s contract be
renegotiated to increase the Contractor's repayment ceiling; Provided, That
these courses of action shall also apply in the event that, prior to
completion of construction of such stage, the Contracting Officer determines
that the construction of such stage will result in an increase in the
Contractor's repayment obligation by an amount greater than the respective
amount identified in Exhibit "B."
(f) Annual percentages of the repayment obligation for each
construction stage shall be those set out in the following schedule or any
revision thereof mutually agreed upon:
Repayment Year
1-7
8-14
15-21
22-28
29-35
36-42
43-49
50
Percent of Repayment
Obliqation (Annual)
1.0
1.3
1.6
2.0
2.6
2.7
2.7
2.7
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(g) In the event that the Secretary contracts for del ivery
of non-project water under the provisions of Article 10.1, capital charges
associated with such delivery shall be calculated, charged, and utilized in
the same manner as capital charges deposited in the Development Fund
pursuant to Article 8.18.
9.4 Payment of Contractor's Construction Cost Repayment
Obliqation.
(a) The Contractor shall make annua 1 payments to the
United States, to be credited to the Development Fund, which shall be
sufficient, when combined with accruals from the other sources described in
Section 403(f) of the Basin Project Act, the Hoover Power Plant Act of 1984,
and other miscellaneous revenues, including but not limited to net wheeling
charges, to effect repayment of the repayment obl igation for each
construction stage within a period of not more than 50 years beginning with
the year following substantial completion of each construction stage. The
Contractor's first payment shall be due on or before January 15 of the year
following the year in which the Secretary announces the substantial
camp 1 et i on of each construct ion stage. Annual payments there a fter shall
be due on or before January 15 of each following year.
(b) The Contractor agrees to make annual payments
calculated by the Secretary as follows:
(i) Calculate the annual principal payments required by
the 'Schedule in Subarticle 9.3(f) or any revision
thereof for each construction stage.
(ii) Add to (i) the annual interest, at 3.342 percent,
on the unpaid balance of the interest-bearing
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allocation for each construction stage.
(ii1) Determine the total amount of all interest and
principal payments due for all construction
stages.
(iv) Subtract therefrom the revenues estimated to be
available from the Development Fund anticipating
a zero ba 1 ance a t the end of each year in the
Development Fund.
(v) Make adjustments for differences between estimated
and actual revenues for the preceding year.
(c) On or before each December 15, beginning with
December 15 of the year in which the Secretary notifies the Contractor of
the substantial completion of the first construction stage, the Secretary
will notify the Contractor of the amount of the annual payment due on the
following January 15, which has been determined by the Secretary on the
basis of the aforesaid calculation.
(d) The Contractor may make additional payments on the
repayment obligation at any time subject to such terms and conditions as may
be agreed upon by the Contractor and the Contract i ng Offi cer; Provi ded.
however, That all interest due is paid at the same time, whereupon
appropriate adjustments in the schedule of future payments will be made by
the Secretary, who shall as promptly as possible give the Contractor
written notice of the adjusted repayment schedule.
(e) It is understood and agreed that the Contractor shall
be obligated for the payments set forth in Subarticle 9.4(a) hereof and
that regardless of the delinquency or default in payment of any charges
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due to the Contractor from any subcontractor, or a diminution in the water
supply-available to the Contractor, or regardless of any other reason, the
Contractor shall compl ete repayment of each construction stage with; n a
50-year period beginning in the year following the announcement by the
Secretary of substantial completion of such construction stage.
9.5 Commercial Power Rates. The Secretary will, consistent
with applicable law, periodically review and provide for appropriate
adjustments in the rates estab li shed for the sales of power and energy,
revenues from which contribute to the Development Fund.
9.6 Other Costs Borne by the tontractor.
(a) In addition to the payments provided for in Article 9.4
hereof, and subject to the provisions of Subarticle 9.6(d) hereof) during
such periods as the United States operates and maintains completed
cons truct ion stage s) the Contractor shall make advance payments for
OM&R costs incurred by the United States. The United States will furnish
the Contractor with an estimate in writing at least 6 months
prior to substantial completion of construction of the water supply system,
of the OM&R cost due from the Contractor to the end of the then current
year, together w1th an estimate of such cost for the calendar year
immediately following. Within a reasonable time of the receipt of said
estimates, as determined by the Contracting Officer, the Contractor shall
advance to the United States the payments for the estimated OM&R cost to the
end of the then current year and without further notice or demand shall on
December 15 of the then current year and on June 15 of the following year
advance to the United States in equal semiannual installments the
Contractor's share of the estimated cost, including supervision and
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admini strative expense for the OM&R of the water supply system. Advance
payments shall be made in subsequent years by the Contractor to the
United States on the basis of estimates to be furnished by the United States
on or before November 15 preceding said subsequent year and the advances of
said payments shall be due and payable in equal semiannual payments on the
following December 15 and June 15. Said OM&R costs are the total annual
OM&R costs of completed construction stages which are allocated to the
irrigation and M&I water supply functions less (1) the costs described in
Subarticle 9.6(c) hereof, and (ii) an amount determined by multiplying the
total of said annual costs by the ratio obtained by dividing the estimated
amount of project water projected to be delivered in the subsequent year to
ent it i es other than the Contractor, the subcontractors, and those enti ti es
in New Mexico to which project water will be made available from Hooker Dam
or suitable alternative, by the total amount of project water estimated to
be delivered for use in that year.
(b) Differences between actual OM&R costs and the estimated
costs shall be determined by the Contracting Officer and shall be adjusted
in next succeeding estimates; Provided, however, That if in the opinion of
the Contracting Officer the amounts advanced by the Contractor for any year
are likely to be insufficient to pay the above-mentioned OM&R costs during
such year, additional and sufficient sums of money shall be paid forthwith
by the Contractor to the United States upon not ice thereof and demand
therefor by the Contracting Officer; Provided, further, That the
United States will give Contractor reasonable notice in advance of any such
deficiency.
(c) The Contractor's obligation to pay said OM&R costs
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of completed construction stages will be reduced to the extent that project
water is made available for use in New Mexico following completion of
Hooker Dam or suitable alternative. Said reduction will be in the
proportion which the quantity of project water projected to be delivered to
water users in Arizona, in exchange for Gila River system waters delivered
to water users in New Mexico from or by means of project works, bears to the
total quantity of Colorado River water projected to be delivered to the
project that year.
(d) In the event that responsibil ity for OM&R of project
facilities is transferred to and assumed by the Contractor, the Contractor
shall be relieved of the obligation to make OM&R payments associated with
such facilities under Subarticle 9.6(a) of this contract. In that event,
the United States shall payor provide for payment of OM&R costs associated
with deli very of wa te r to ent it i e s other than the Contractor and the
subcontractors. Such costs shall be computed in accordance with
Subarticle 9.6(a) of this contract. If the Contractor does not receive
payment in advance for such costs, the Contractor shall have no obligation
to deliver such water.
(e) Duri ng the Hoover Dam cost-repayment period, the
Contractor shall pay to the United States the sum of $0.25 for each acre-
foot of water pumped from lake Havasu for miscellaneous and M&I water
purposes as determined by the Contracting Officer. The quantity of water
pumped for such purposes will be determined by the Contracting Officer at
the end of each calendar year and the Contractor notified of the amount due
by March 1 of each subsequent year. Payment shall be due on May 1 following
notification. Said payment shall be credited to the Colorado River Dam Fund
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established by Section 2 of the Boulder Canyon Project Act.
9.7 Repayment of Costs of Excess Capacity in Granite Reef
Aqueduct. The costs of providing any capacity in the Granite Reef Aqueduc~
and pumping plants in excess of 2,500 cubic feet per second shall be repaid
by Contractor from funds available to Arizona pursuant to the provisions of
Section 403(f) of the Basin Project Act, or by funds from sources other than
the Development Fund.
9.8 Ad Valorem Taxes, Assessments, Tolls, and Other Charqes.
Within the legal limits available to it, the Contractor shall levy
ad valorem taxes upon the taxable property within the service area of the
Contractor at rates determi ned necessary by the Contractor to ra i se funds
which, together with the revenues from the sale of water and such financial
assi stance from the Development Fund as the Secretary determines is
available therefor, are sufficient to meet the obligations of the Contractor
to make in full all payments to the United States on or before the date such
payments become due and to meet its other obligations under this contract.
9.9 Continuation of Payments After Project Payout. Following
payment to the United States of the Contractor's final payment for the last
construction stage, the Contractor shall continue- to make annual payments to
the United States to be credited to the Development Fund in amounts ~qual to
the average annual principal payment for the project during the overall
repayment period. In the event that no augmentation project, as
contemplated in the Basin Project Act, has been authorized or is under
active consideration by the Congress at the time project construction costs
have been repaid in full, payments under this formula will be not required;
Provided, however, That payments will commence after repayment of the
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project costs pursuant to the formula, or any adjustment thereof agreed to
by the parties, at such time as an augmentation project is authorized by
Congress and the costs thereof allocated to the Contractor are determined by
the Secretary.
9. 10 De fa u 1 t s .
(a) The Contractor shall pay a penalty on payments,
installments or charges which become delinquent, computed at the rate of
1 percent per month on the amount of such delinquent payments, installments,
or charges from and after the date when the same become due until paid.
(b) No water shall be furnished to the Contractor during
any period in which the Contractor may be in arrears more than 12 months in
the payments to the United States required by Article 9.4 hereof.
(c) All rights of action for breach of this contract are
reserved to the United States as provided by Federal law.
10. GENERAL PROVISIONS
10.1 Other Contracts. The Secretary reserves the right to
contract d.i.rectly with other water using entities concerning water supply
through project facilities. In the event this occurs, the provisions of
Article 8.17 hereof shaJl be applicable.
10.2 Title to Project Works. Title to all water supply system
works and all project facilities constructed pursuant to the Basin Project
Act and this contract shall be and remain in the United States until
otherwise provided by Congress.
10.3 Reserve Funds.
(a) (i) Commencing with notice of transfer of OM&R for the
Granite Reef Aqueduct, including the Havasu Pumping Plant, the Contractor
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shall accumulate and maintain an emergency OM&R reserve fund, which the
Contractor shall keep available to meet costs incurred during periods of
interruption of water service.
(i i) The Contractor shall accumul ate the reserve fund
with annual deposits, including interest and dividends accruing to fund
balances or holdings, of not less than $400,000 in any year in which the
fund balance is less than $4,000,000. The fund shall be invested in a
Federa lly insured i nterest- or di vidend-beari ng account, or in securiti es
guaranteed by the Federal Government; Provided, That money in the reserve
fund shall be available within a reasonable time to meet expenses for such
purposes as those identified in Subarticle 10.3(a)(iv) hereof. Such annual
deposits and the accumulation of interest and dividends to the reserve fund
shall continue until $4,000,000 is accumulated. Interest and dividends
accruing to fu~ balances shall be added to the fund in any year when the
fund balance is greater than $4,000,000; Provided, That in no event shall
the fund be increased to an amount greater than the actual amount of fixed
OM&R costs for the preceding year as mutually determined by the Contractor
and the Contracting Officer. Any balance in the fund in excess of the
amount of fixed OM&R costs for the previous year shall be considered to be
the general funds of the Contractor and available for use as such.
(i i i) Upon mutua 1 agreement between the Contractor and
the Contracting Officer, the amount to be accumulated and maintained in the
reserve fund provided for in this Subarticle may be adjusted in
consideration of the risk and uncertainty stemming from the size and
complexity of the project, the size of the annual OM&R budget, additions
to, deletions from, or changes in project works, or OM&R costs not
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contemplated when this contract was executed.
(iv) The Contractor may make expenditures from such
reserve fund only for meeting unforeseen and extraordi nary operation and
maintenance costs, unusual or extraordinary repair or replacement costs, and
betterment costs (i n s i tuat ions where recurrence of severe operati on and
ma i ntenance problems can be avoi ded or e 1 imi nated). Proposed expenditures
from the fund shall be ~ubmitted to the Contracting Officer in writing for
review and written approval prior to disbursement.
(v) During any period in which any of the project works
are operated and maintained by the United States, the reserve fund shall be
available for like use by the United States.
(vi) On or before February 1 of each year, the
Contractor sha 11 provi de to the Contracting Offi cer an annua 1 statement
indicating the principal and accumulated interest in the emergency OM&R
reserve fund as of December 31 of the preceding year.
(b) (1) No later than 1 year following the Contractor's
last construction advance und~ the Plan 6 Funding Agreement, the Contractor
shall accumulate and maintain a repayment reserve fund to help assure
payments to the United States under this contract.
(i i) The Contractor sha 11 accumul ate such reserve fund
with .nnual deposits, including interest and dividends accruing to fund
balances or holdings, of not less than $4,000,000 in any year in which the
fund balance is less than $40,000,000. The fund shall be invested in a
Federally insured interest- or dividend-bearing account, or in securities
guaranteed by the Federal Government; Provided, That money in the reserve
fund shall be avai lable within a reasonable time to meet expenses for the
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purpose for which it was establ i shed. Such annual deposits and the
accumulation of interest to the reserve fund shall continue until
$40,000,000 is accumulated. Any balance in the fund in excess of
$40,000,000 shall be considered to be the general funds of the Contractor
and available for use as such.
(iii) Upon mutua 1 agreement between the Contractor and
the Contracting Officer, the amount to be accumulated and maintained in the
reserve fund provided for in this Subarticle may be adjusted.
(iv) Proposed expenditures from the fund shall be
submitted to the Contracting Officer in writing for review and written
approval prior to disbursement.
(v) On or before February 1 of each year, the
Contractor shall provide to the Contracting Officer an annual statement of
the principal and accumulated interest in the repayment reserve fund as of
December 31 of the preceding year.
10.4 Recreational Use of Water Facilities.
(a) The enhancement of recreational opportunities in
connection with the project works authorized pursuant to Title III of the
Basin Project Act shall be in accordance with the provisions of the Federal
Water Project Recreation Act, 79 Stat. 213, dated July 9, 1965, except as
provided in Subarticle 10.4(b) hereof.
(b) Recreational development at Orme Dam and Reservoir
shall be governed by the provisions of Section 302(d) of the Basin Project
Act.
10.5 Confirmation of Contract.
(a) The Contractor, a fter the execut; on of thi s contract,
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shall promptly seek to secure a decree of a court of competent jurisdiction
of the State of Arizona confirming the execution of this contract. The
Contractor shall furnish the United States a certified copy of the final
decree, the validation proceedings, and all pertinent supporting records of
the court approvi ng and confi rmi ng thi s contract, and decreei ng and
adjudging it to be lawful, valid, and binding on the Contractor. This
contract shall not be binding on the United States or the Contractor until
such final decree has been entered.
(b) This contract shall be indivisible for purposes of
validation and shall not be binding on the United States or the Contractor
unless validated pursuant to the provisions of Subarticle lO.S(a) hereof in
each and all of its terms and conditions.
10.6 Rules, Requlations, and Determinations.
(a) The parties agree that the delivery of water or the use
of Federal facilities pursuant to this contract is subject to Reclamation
law, as amended and supplemented, and the rules and regulations promulgated
by the Secretary of the Interior under Reclamation Law.
(b) The Contracting Officer, after an opportunity has
been offered to the Contractor for consultation, shall have the right to
make rules, regulations, and determinations consistent with the provisions
of thi s contract, the laws of the United States and the State of Arizona,
including, without limitation, rules, regulations, and determinations
relative to maximizing project benefits from pumping from lake Havasu, the
rate and schedule of pumping therefrom and the rate and schedule of pumping
at the Granite Reef pumping plan"t"S, to add to or modify said rules,
regulations, and determinations as may be deemed proper and necessary to
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carry out this contract, and to supply necessary details of its
administration which are not covered by express provisions of this contract.
The Contractor and each subcontractor shall observe such rules, regulations,
and determinations and each subcontract shall so provide.
(c) Where the terms of this contract provide for action
to be based upon the opinion or determination of either party to this
contract, whether or not stated to be conclusive, said terms shall not be
construed as permitting such action to be predicated upon arbitrary,
capricious, or unreasonable opinions or determinations. In the event that
the Contractor questions any factual determination made by the
Contracting Officer, the findings as to the facts shall be made by the
Secretary only after consultation with the Contractor and shall be
conclusive upon the parties.
10.7 Books, Records, and Reports. The Contractor shall establish
and maintain accounts and other books and records pertaining to
administration of the terms and conditions of this contract, including: the
Contractor's financial transactions, water supply data, project operation,
maintenance and replacement logs, project land and right-of-way use
agreements, and other matters specifically relating to this contract that
the Contracting Officer may require. Reports thereon shall be furnished to
the Contracting Officer in such form and on such date or dates as the
Contracting Officer may require. Subject to applicable Federal laws and
regulations, each party to this contract shall have the right during office
hours to examine and make copies of the other party's books and records
relating to matters covered by this contract.
10.8 Notices. Any notice, demand, or request authorized or
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required by this contract shall be deemed to have been given, on behalf of
the Contractor, when mailed, postage prepaid, or delivered to the Regional
Director, lower Colorado Region, Bureau of Reclamation, P.O. Box 61470,
Boulder City, Nevada 89006, and on behalf of the United States, when mailed,
postage prepaid. or del ivered to the General Manager of the Contractor,
23636 North 7th Street, Phoenix, Arizona 85024. The designation of the
addressee or the address may be changed by notice given in the same manner
as provided in this article for other notices.
10.9 Continqent on Appropriation or Allotment of Funds. The
expenditure or advance of any money or the performance of any obligation by
the United States under this contract shall be contingent upon
appropriation or allotment of funds. Absence of appropriation or allotment
of funds shall not relieve the Contractor from any obligations under this
contract. No liability shall accrue to the United States in case funds are
not appropriated or allotted.
10.10 Chanqes in Contractor's Orqanization. While this contract
is in effect, no change shall be made in the Contractor's organization,
by exclusion of lands, by dissolution, consolidation, merger or otherwise,
except upon the Contracting Officer's written consent; Provided, however,
That approval is hereby given to the inclusion of other counties as part of
Contractorls ,service area, except, however, that the United States shall not
be required,under this contract, to construct project facilities to serve
lands within said additional counties.
10.11 Assiqnment limited--Successors and Assiqns Obliqated.
The provisions of this contract shall apply to and bind the successors and
assigns of the parties hereto, but no assignment or transfer of this
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contract or any part or interest therein shall be val id until approved in
writing by the Contracting Officer.
10.12 Judicial Remedies Not Foreclosed. Nothing herein shall
be construed (a) as depriving either party from pursuing and prosecuting any
remedy in any appropriate court of the United States or the State of Arizona
which would otherwise be available to such parties even though provisions
herein may declare that determinations or decisions of the Secretary or
other persons are conclusive or (b) as depriving either party of any defense
thereto which would otherwise be available.
10.13 Equal Opportunity. During the performance of this
contract, the Contractor agrees as follows:
(a) The Cont ractor wi 11 not di scri mi nate aga in st any
employee or applicant for employment because of race, color, religion, sex,
or national origin. The Contractor will take affirmative action to ensure
that applicants are employed, and that employees are treate-d during
employment, without regard to their race, color, religion, sex, or national
origin. Such action shall include, but not be limited to, the following:
Employment, upgrading, demotion, or transfer; recruitment or recruitment
advertising; layoff or termination; rates of payor other forms of
compensation; and selection for training, including apprenticeship. The
Contractor agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided by the Contracting Officer
setting forth the provisions of this Equal Opportunity clause.
(b) The Contractor will, in all solicitations or
advertisements for employees placed by or on behalf of the Contractor, state
that all qualified applicants will receive consideration for employment
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without regard to race, color, religion, sex, or national origin.
(c) The Contractor will send to each labor union or
representative of workers with which it has a collective bargaining
agreement or other contract or understandi ng, a notice, to be provided by
the Contracting Officer, advising the labor union or workers' representative
of the Contractor's commitments under this Equal Opportunity clause, and
shall post copies of the notice in conspicuous places available to employees
and applicants for employment.
(d) The Contractor will comply with all provisions of
Executive Order No. 11246 of September 24, 1965, as amended, and of the
rules, regulations, and relevant orders of the Secretary of Labor.
(e) The Contractor shall furnish all information and
reports required by said amended Executive Order and by the rules,
regulations, and orders of the Secretary of labor, or pursuant thereto, and
wi 11 permit access to its. books, records, and accounts by the
Contracting Officer and the Secretary of labor for purposes of investigation
to ascertain compliance with such rules, regulations, and orders.
(f) In the event of the Contractor's noncompliance with the
Equal Opportunity clause of this contract or with any of the said rules,
regulations, or orders, this contract may be canceled, terminated, or
suspended, in whole or in part, and the Contractor may be declared
i ne 1 i 9 i b 1 e for further Government contracts in accordance wi th procedures
authorized in said amended Executive Order, and such other sanctions may be
imposed and remedies invoked as provided in said amended Executive Order, or
by rule, re~~ation, or order of the Secretary of Labor, or as otherwise
provided by law.
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(g) The Contractor will include the provisions of paragraphs
(a) through (g) in every subcontract or purchase order unless exempted by
rules, regulations, or orders of the Secretary of Labor issued pursuant to
Section 204 of said amended Executive Order, so that such provisions will be
bi ndi n9 upon each subcontractor or vendor. The Contractor wi 11 take such
action with respect to any subcontract or purchase order as the
Contracting Officer may direct as a means of enforcing such provisions,
including sanctions for noncompliance; Provided, however, That in the event
the Contractor becomes involved in, or is threatened with, litigation with a
subcontractor or vendor as a result of such direction by the
Contracting Officer, the Contractor may request the United States to enter
into such litigation to protect the interests of the United States.
10.14 Compliance With Civil Riqhts Laws and Requlations.
(a) The Contractor shall comply with Title VI of the
Civil Rights Act of 1964 (42 V.S.C. 2000d), Section 504 of the
Rehabilitation Act of 1975 (Public Law 93-112, as amended), the
Age Discrimination Act of 1975 (42 U.S.C. 6101, et ~.) and any other
applicable civil rights laws, as well as with their respective implementing
regulations and guidelines imposed by the U.S. Department of the Interior
and/or Bureau of Reclamation.
(b) These statutes require that no person in the United
States sha 11, on the grounds of race, co lor, nat.; ona 1 ori gi n, handicap, or
age, be excluded from participation in, be denied the benefits of, or be
otherwise subjected to discrimination under any program or activity
receiving financial assistance from the Bureau of Reclamation. By executing
thi s contract, the Contractor agrees to immediately take any measures
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necessary to implement this obligation, including permitting officials of
the United States to inspect premises, programs, and documents.
(c) The Contractor makes this agreement in consideration of
and for the purpose of obtaining any and all Federal grants, loans,
contracts, property discounts or other Federal financial assistance extended
after the date hereof to the Contractor by the Bureau of Reclamation,
i ncl udi ng i nsta llment payments after such date on account of arrangements
for Federal financial assistance which were approved before such date. The
Contractor recognizes and agrees that such Federal assi stance will be
extended in reliance on the representations and agreements made in this
article, and that the United States reserves the right to seek judicial
enforcement thereof.
10.15 Officials Not to Benefit. No Member of or Delegate to
Congress, Resident Commissioner or official of the Contractor shall benefit
from this contract other than as a water user or landowner in the same
manner as other water user~ or landowners.
11. STATUS OF DECEMBER 15, 1972 CONTRACT
Upon judicial confirmation of this contract, the December 15, 1972
contract entitled "Contract Between the Ynited States and the Central
Arizona Water Conservation District For Delivery of Water and Repayment of
Costs of the Central Arizona Projett" (Contract No. 14-06-1;1-245), shall be
superseded and replaced by this contract.
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to be executed the day and year first above written.
IN WITNESS WHEREOF, the parties hereto have caused thi s contract
ATTEST:
THE UNITED STATES OF AMERICA
By
Sci ence
CENTRAL ARIZONA WATER CONSERVATION DISTRICT
1lz.~~;f~ BY~~
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