BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Adopt the Resolution Approving the Central Valley Project Repayment Contract, and Authorize District Counsel to File a Validation Action for the Central Valley Project Repayment Contract.
End
RECOMMENDATION:
Recommendation
A. Receive information and discuss the proposed Central Valley Project Repayment Contract;
B. Approve the Central Valley Project Repayment Contract by adopting the Resolution APPROVAL OF CENTRAL VALLEY PROJECT REPAYMENT CONTRACT; and
C. Authorize District Counsel to file a validation action for the Central Valley Project 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 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's primary CVP water service contract provides Valley Water with a contractual right of up to 152,500 acre-feet of CVP water annually. During critically dry years, a large portion, if not a majority, of Santa Clara County's surface water supplies is derived from this contract. The contract was first executed in 1977 and is s...
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