BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Receive an Update on the Central Valley Project Contract Conversion Process Under the Water Infrastructure Improvements for the Nation Act; *Adopt a Resolution Approving Mercy Spring Repayment Contract and Authorizing the Chief Executive Officer or her Designee to Execute it; and Approve and Authorize the District Counsel to File a Validation Action for the Mercy Springs Repayment Contract.
End
RECOMMENDATION:
Recommendation
A. Receive an update on the Central Valley Project contract conversion process under the Water Infrastructure Improvements for the Nation Act;
B. *Adopt the resolution APPROVAL OF MERCY SPRINGS REPAYMENT CONTRACT and authorize the Chief Executive Officer or her designee to execute the Mercy Springs Repayment Contract; and
C. Approve and authorize District Counsel to file a validation action for the Mercy Springs Repayment Contract.
Body
SUMMARY:
On December 16, 2016, Congress passed the Water Infrastructure Improvements for the Nation Act (WIIN Act). Section 4011 of the WIIN Act allows for Central Valley Project (CVP) contractors to request conversion of their water service contracts into repayment contracts. Contract conversion requires contractors to accelerate payment of their share of CVP capital costs associated with CVP water received under the contract. Once the water service contract is converted, the WIIN Act provides that the repayment contract will continue so long as applicable contract charges are paid by the contractor. Therefore, the repayment contract will not require future renewals. In addition, the WIIN Act earmarks the accelerated payments of outstanding CVP capital costs from converted repayment contracts to an account that will be used by the United States Bureau of Reclamation (Reclamation) to partially fund development of additional water storage projects, some of which may benefit Santa Clara Valley Water District (Valley Water).
Valley Water currently has two CVP w...
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