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Show CHAPTER II 51 Pursuant to a contract dated August 1, 1971, with Nevada's Colorado River Commission, the Las Vegas Valley Water District assumed responsibility for the operation and maintenance of the project. This contract was approved by Nevada's Governor on September 21, 1971. D.5.2. Second Stage A contract for the construction of the second and final stage of the project, No. 7-07-30-W0004, was executed August 4, 1977, and superseded the First Stage contract of August 25, 1967. Deliveries of water under it at a maximum rate of diversion of 638 ftVs for both stages of the project with the exception of present perfected rights and miscellaneous contracts for delivery of water from Lake Mead and along the river will utilize all of Nevada's entitlement of 300,000 acre-feet per year of consumptive use; i.e., diversions less measured return flows. The Second Stage will modify and expand the present system. It will add five new pumping plants, a second barrel to the main aqueduct and approximately 30 miles of additional pipeline and laterals. The costs are estimated at $109,864,000, and the State of Nevada has agreed to pay the construction costs in excess of available Federal funding of $88,377,000 in order to expedite construction and to avoid delay in obtaining authorization to increase the appropriation ceiling. Revenue for repayment of the project's costs will be derived from the sale of project water under the subsidiary contracts. The First Stage reimbursable costs were allocated based on the water entitlement of each entity in proportion to the total First Stage water entitlement under contract. Under the Second Stage only Nellis Air Force Base uses that allocation procedure, while the remaining water users will each pay a share of the total annual reimbursable capital costs (with the capital costs allocated to Nellis excluded) based on its proportion of annual water use to the total annual water use (again excluding Nellis). All users will pay OM&R costs in proportion to water user. If water use follows projections, the water rate for amortization of capital costs will approximate $45 per acre-foot over the 50-year repayment period. Amortization of facilities financed by State funding are projected at $40 per acre-foot. OM&R costs presently amount to $36 per acre-foot. Each stage is allowed a 50-year repayment period with the First Stage repayment beginning in 1973 and the Second Stage expected to begin in 1983. In addition to amortization of the Federal obligation, the State will pay 50 cents per acre-foot of water diverted as provided in its contract of March 30, 1942. Following the Hoover Dam cost repayment period, the 50 cent charge will be adjusted as prescribed by Congress. Upon completion of construction, it is anticipated that OM&R will be transferred to the Las Vegas Valley Water District as the agent of the State. D.5.3 Second Stage Subcontracts The aforesaid First Stage subcontracts were amended and superseded by the following Second Stage subcontracts: Actual Contract Acre-Feet of Diversions Subcontractor Executed 1975 1976 1977 Boulder City 8/4/77 1,847 2,053 2,545 Henderson 8/4/77 1,558 1,901 2,195 No. Las Vegas 8/4/77 6,370 6,546 6,498 Las Vegas Valley 8/4/77 55,135 59,912 61,573 Water District Nellis Air Force Base Execution 1,907 2,190 2,714 pending as of 2/15/78 |