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Show V Hi - i j i M l i t r " " ^ " ^ •==«*•»*••*"«•«•"»« uliMili-, rffiiiiimiis » • 1 Summary and Recommendation The district prefers, for political and public relations reasons, to leave the present contract intact since it was negotiated in good faith and has been relied upon for project development to date. To require the reopening of the original contract would, in the eyes of the district, amount to a breach of faith with the people who overwhelmingly supported the project. The district also takes the position that a supplementary water service contract can be effected without an election, whereas an amended repayment contract will definitely require one. Although an election is both expensive and time consuming, it should be noted that recent polls show that the project is highly favored in the area and an election would most likely be successful. I Option A would be preferred by the district as that option would ^ 4 require the least changes and have the least impact on the district s j existing contractual obligations. However, from the standpoint of the ': United States, this option fails to take advantage of an opportunity \ to institute many current policies and to bring about the earliest ] recovery of costs. Option C has several significant advantages. However, the difficultly and the time necessary to effectuate this option may force a delay in construction of the unit at an associated significant cost. Potential opposition within and without the district could jeopardize the existing I investment already made by the United States. I recommend that Option B be adopted as the basis of increasing the I district's M&I repayment obligation and for the marketing of the j additional 20,000 acre-feet of yield. This option may entail the ] least public opposition.and, hence, the timeliest processing of the '' contract. In addition to the advantages previously listed, it is possible that a M&I water service contract could continue past the proposed 40-year repayment period to assist in the repayment of other Colorado River Storage projects (this requires further legal review). I feel that Option B will allow a timely negotiation, execution, and validation of a new water service contract and permit uninterrupted construction of the Bonneville Unit. Following your concurrence or alternative direction on this matter, | I will notify the Regional Director in Salt Lake City, Utah, of - the option he is to proceed under. The Regional Director will j then submit a detailed basis on which to negotiate the necessary contract for my review and approval. Concurrently with my approval i i . . . .. i i |
