20060413UWI response staff 1st requests.pdf

McDevitt & Miller LLP
Lawyers
[phone]
[phone] (Fax)
420 W. Bannock Street
, -
O. Box 2564';;83701 : -
-' ", ,: '
Boise, Idaho 83702 Chas. F. McDevitt
Dean 1. (Joe) Miller
April 13, 2006
Via Hand Delivery
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, Idaho 83720
Re: Case No. UWI-06-
Dear Ms. Jewell:
Enclosed for filing in the above matter please find three (3) copies of United Water
Idaho s Response to Staffs First Production Requests Nos. 2-18.
Very Truly Yours
! t ~r:kif~il~er
DJM/hh
UNITED WATER IDAHO INC.
CASE UWI-O6-02
- '
:::: i f;: r I
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
: . ,- -:: ;
:, ; i ; i ~-; s:
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.
Please provide an updated copy of all leases , purchase agreements or other
contracts for water as shown on Exhibit 10. Please summarize the current status
of each lease, purchase agreement or contract for water and clearly indicate
those that have already been executed for 2006 , those which are still pending,
and the expected execution date of those which are pending. When will all
leases , purchase agreements or other contracts for 2006 be completed?
RESPONSE NO.
All leases, agreements , contracts and canal assessments have been completed
for the 2006 season. Please find attached updated copies as requested to
support the annual costs associated with Exhibit 10 as referenced in direct
testimony provided by Mr. Scott Rhead. Natural flow surface water rights have
not been included due to the fact these rights have no annual cost.
THURMAN MILL DITCH CO., L
c/o 10611 W. Treeline Ct. Boise, Idaho 83713
[phone]
IRRIGATION SEASON 2005
INVOICE - United Water
Share Cost Lucky Peak Stock
# Shares ($14/share)Cont. Cost Assessment TOTAL
($1.06/share)$3.00 flat fee
46.$651.00 $49.$3.$703.
Make checks payable to: Thurman Mill Ditch Co., Ltd.
Mail to: Thurman Mill Ditch Co., Ltd.
c/o Bonnie DeChambeau, Sec.ffreas.
10611. Treeline Ct.
Boffie, Idaho 83713
3()'LfL
/P-/,2..1
y/J.r(O
Note: Delinquent after May 6, 2005
A penalty of2% will be added to the amount delinquent, and the total amount will bear interest ~12% per annum until
paid
Signamr4 f: t--
(Check one)
Retain current Board of Directors for lnigation Season 2005
Write-in candidate Cntrl A
00C'
5ec)CategOry
!;~~-
'=;- () f.-, 0 S-Sub Act
---- ---
ActivID (;,02-000
Bas tJDIt
Please return this invoice with payment Thank you Proj ID r.z &OP
Do \\i ~
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Res Type \ \~ rT -Res Cat1nC lV\\OCDept ID Location
APProv~-1/)~mount $ 70"3
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l)f\!fTED Vl/:"TER
THURMAN MILL DITCH CO., L Tn.
c/o 10611 W. Treeline Ct. Boise, Idaho 83713
[phone]
ANNUAL MEETING
In lieu of the Annual shareholder s meeting shareholder s will continue to be able to
communicate with the Board expressing their concerns or asking questions via telephone, in
writing, or if you would like to join us in one of our meetings, just let us know. This decision
was made due to the lack of attendance and interest at the annual meetings.
IRRIGATION SEASON 2005
The Thurman Mill water share rates are experiencing an increase this year due to the rising costs
of goods and services, operations, labor, etc. Additionally, we are nearing the end of our Lucky
Peak storage water contracting activities with the Bureau of Reclamation. As a result, we need to
prepare financially for the annual cost of our storage water repayment contract under reclamation
law. These Lucky Peak monies will be held in account and earmarked specifically for use only
for the Lucky Peak storage water contract. Your 2005 Irrigation Season invoice is enclosed.
The board is currently pursuing a variety of avenues to offset costs in the future. OUf goal is to
diligently search for ways to reduce the cost of doing business. Specific information related to
this wilJ follow. Please keep in mind that our water shares have been some of lowest cost shares
in the valley.
BE SURE TO INFORM US OF CHANGES
Please notify the ditch company in writing of any change in property ownership. It is helpful to
receive notification and accompanying paperwork i.e. original certificate of shares, copy of
transfer of ownership (deed, etc.) and other relevant documents well in advance of transaction.
Thank you!
BOARD OF DIRECfOR'
Your current Board of Director s are as follows:
Bart DeChambeau, President Bob Carrico, Board member
Rosalyn Cusack, Vice President Carol Kitch, Board member
Bonnie DeChambeau, SecretaryfTreasurer
All current Board member have expressed an interest in continuing on to serve another term
(irrigation season 2005). To vote your shares, please sign and return the attached invoice. If your
invoice is received without a vote and/or signature, it will be assumed that your shares will be for
retention of the current board.
LEASE AGREEMENT
for
Shares of Boise City Canal Company
THIS LEASE AGREEMENT ("Agreement") is entered into by and between BOISE CITY
CANAL COMPANY, an Idaho non-profit corporation ("BCCC"), whose mailing address is P. O.
Box 2157, Boise, Idaho 83701 , and UNITED WATER IDAHO INC., an Idaho corporation ("United
Water ) whose mailing address is 8248 W. Victory Road, Boise, Idaho 83707.
Recitals
BCCC is the owner of two (2) water rights decreed in the Stewart Decree to divert
water from the Boise River and beneficially use such water for irrigation purposes, which water
rights are listed in the records of the Idaho Department of Water Resources (IDWR) as decreed
Water Right Nos. 63-00165H and 63-00165K.
BCCC delivers water diverted under Water Right Nos. 63-00165H and 63-00165K
to the shareholdersofBCCC at the current rate of 0.75 miners inches (0.015 cfs) per share of stock
during the irrigation season (April 15 to October 15).
BCCC desires to fulfill its purpose, maintain its water rights and preserve the
financial integrity of the company by supplying water to new users.
United Water supplies municipal water and irrigation water to customers in and
around Boise, Idaho and has diversion facilities through which it is able to divert and place to
beneficial use water diverted from BCCC's system. The area served by BCCC lies wholly within
United Water s municipal service area.
LEASE AGREEMENT BETWEEN BOISE CITY CANAL COMPANY
AND UNITED WATER IDAHO, INC. - Page
~~-------o~~~~~~--~._.
United Water and BCCC desire to enter into an agreement whereby United Water will
lease shares held by BCCC in exchange for delivery of water under Water Right Nos. 63-00l65H
and 63-00l65K.
Terms of the Agreement
THEREFORE, in consideration of one dollar and other good and valuable consideration, the
receipt of which BCCC hereby acknowledges, and the covenants contained herein, the parties agree
as follows:
Lease of 100 Shares. BCCC hereby leases to United Water ONE HUNDRED (100)
shares ofBCCC capital stock, which shares are currently held as BCCC treasury stock and are listed
on Exhibit A attached hereto and made a part hereof (the "100 Base Shares ), for an initial term of
ten (10) irrigation seasons commencing with the year 2000 irrigation season. Upon the expiration
of the initial term, this Agreement may be extended from time to time for one or more irrigation
seasons as may be mutually agreed by the parties in writing.
Annual Adjustments to the Lease. Subject to availability and annual adjustments
additional shares over and above the 100 Base Shares may be leased by United Water under this
Agreement. Prior to April 15 of each year, the parties will communicate and agree as to the number
of additional shares that will be leased for each irrigation season during the term of this Agreement.
Payment of Annual Assessments . Each year during the term of this Agreement
United Water will pay the annual per share assessment made by BCCC on its issued and outstanding
shares for the total number of shares leased by United Water hereunder for the irrigation
season
falling within such year.
LEASE AGREEMENT BETWEEN BOISE CITY CANAL COMPANY
AND UNITED WATER IDAHO, INe. - Page 2
- ~C
- -. ---- - ~-~=. ~-' -------
Provision to Adjust or Terminate the Lease . If BCCC becomes unable to deliver
water to its shareholders at the rate of at least 0.75 inches per share (excepting reductions caused by
watermaster control of the Boise River), or is unable to deliver water to the 100 Base Shares as a
result of any governmental law, regulation, ruling, order, judgment or decree, this Agreement will
be subject to renegotiation under which either party may elect to terminate this Agreement.
Right of First Refusal.From the date of expiration of the initial term of this
Agreement (October 15, 2009) up to and including the last day of the tenth (10th) irrigation season
following such expiration (October 15 , 2019), should BCCC determine to lease the 100 Base Shares
as a unit and receive an acceptable bona fide offer ("Offer ) therefor from a third party, BCCC
before entering into a lease with said third party, shall give written notice to United Water stating
BCCC's desire to lease and all of the material terms ofthe Offer, including, without limitation, the
identity of the offeror, proposed term of the lease, lease price, and number of shares (if more than
the 100 Base Shares). United Water shall have the exclusive right for thirty (30) days after receiving
such notice to elect to lease the same number of shares for the term, at the lease price, and upon all
other material terms and conditions of the Offer by giving written notice to BCCC within said thirty
(30) day period. If United Water exercises its first right of refusal hereunder, BCCC and United
Water shall, within thirty (30) days thereafter, enter into a written lease reflecting the terms of the
Offer. This first right of refusal shall not, under any circumstances, apply to any offer to purchase
one or more shares ofBCCC (including any or all of the 100 Base Shares) or to lease any shares of
BCCC other than the 100 Base Shares.
LEASE AGREEMENT BETWEEN BOISE CITY CANAL COMPANY
AND UNITED WATER IDAHO, INC. - Page 3
""-~~~---"'--~~-~~
Notices. Any notice provided for or concerning this Agreement shall be in writing,
and may be delivered by hand delivery or fax, but in any event shall be confirmed by placing such
notice in the United States mail addressed to the respective address of United Water or BCCC as set
forth below:
BCCC:United Water:
Boise City Canal Company
P. O. Box 2157
Boise, Idaho 8370 I
United Water Idaho, Inc.
8248 West Victory Road
P. O. Box 7488
Boise, Idaho 83707
Binding Effect.This Agreement shall bind the parties hereto, their employees
agents, heirs, successors, and assigns.
Severability: IncOl.:poration of Recitals. If any of the provisions of this Agreement
are deemed invalid by any court or agency, the remaining provisions shall remain in effect. The
above recitals are hereby fully incorporated into this Agreement.
No Waiver.A party s election not to enforce any right under this Agreement shall
not constitute a waiver of the party s entitlement to enforce such right in the future.
10.Authority. The parties each represent and warrant that they have authority to enter
into this Agreement.
11.Modification. This Agreement may be modified only in writing and by mutual
agreement of the parties.
12.Conflicting Provisions . In the event of any conflict between the provisions of this
Agreement and the provisions of the Articles ofIncorporation and/or Bylaws of the Boise City Canal
Company, the provisions of the latter documents shall control.
LEASE AGREEMENT BETWEEN BOISE CITY CANAL COMPANY
AND UNITED WATER IDAHO, INe. - Page 4
--------_u_----
_-- --
. ' .
DATED this 7r:1L day of Jv/\/E 2000.
BOISE CITY CANAL COMPANY
UNITED WATER IDAHO, INC.
Greg . yatt sident
LEASE AGREEMENT BETWEEN BOISE CITY CANAL COMPANY
AND UNITED WATER IDAHO, INc. - Page 5
~OI$1.
...~
liJ ,Cafi~i.GG .
Box2157, Boise ldah68;3701
Office Phohe208/387-3526 Ditch Rider 208/861-4485
RECE I VED
APR- 2005
UNIT~D WATER
SGott Rhe
UNITED WATER IDAHO
O:~BQx 190420..
, ,,
Bois~,Ida'~8371'9-0420
Re:
scott:
, '1int16sed~ is ' X:JI1iti~q Wa;te.r' S 90Pyofthe $Xecut~d,agreernentlease.a,h add.::Lti6rial'1~3 sfiCitesofirrlga:j::ion wate.r,dqted,March 16
200 5, and 1I1voiG~, #6121 in: the .aIno~nt Qf$9,310.fOr tne leasing,the'133 slia:res'a:t ciTIassessment $70.per share.
. D
Citf-~ill,Cji
, RQ.Box 2157, Boise. Idahb83701
Office Phcine208/387-3526 DitchRider208l8614485
;:::)::;
El V E' D
.,
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Re:2005 Annual ArneIldII1.ent to Lease
300 Shares of Irrigation Water
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l"'~"-1\""r~ v .
...
iio!ooV'
Scott Rhead
UNTTEDWATER'IDAHO
O. Box 190420
Boise, Idah6 83719:"'O420
" Accoi:di.TJ.'~tb '60t reCent cbnversat:i.6ns,andln COITlpi:LE1!"lc:~"wlthbase ,lease,betw~en Boise 'c:it-yQanal' c::ornpan:yaridUnit~q'w.p-t:$F:J:dCl-llb, 'ex~9utedJllne 2009j the $oa1:'d'ofDirecb:)rs 6f; 'B()~~e c!;'-1yt;ygap-.:tl'Cornpany uI).d~r~tands th,.:tt Uriited Wat~r:Idah6 'desires:to"lEiase 300sha.re:s lrrigation wate:r:Jot'the year2005
~i~ ~~!~~1t~~:~;~:!~1j~~i;;~6~~~~i~.~it~fit~~ek~f~lsl~i~i~~~lette:i:',:j:p-th~/spac~pJ:6-v-idedbelow. 'Bois~c:l tyc;aI1al"Gompafly,w:ill:then
' "
rovidE!'Cl,list 'f:th e "assoc:iat'ed:,share s and.,aI1":invoie:e~ihthearnollnt:$i2Tj 9b6.00,beiFlg,$70~oo
~~-
dh'-i6ic" 3 ()o-i~is~d h~;t~~~-
-"- .-
, UIiited wCiteJ:'
Comp q.ny and .. . BOfu.Water,. 300 sharesse?son.
Idaho .cf9"tees ..leCise -fiomiaq.i.$e c-i:ty Qanal.c futy.canal..Compa.ny agrees., t9
. .
1eas Ei t'O'lJnitedirrigationwa1:er ,for the .2QO'5 ii'i'-i:ga'tion
BOISE CITY CANAL COMPANY
P. O. Box 2157
Boise, ill 83701
RECEIVED
NOV 1 5 2005
UNITED WATER DATE INVOICE NO.
11/9/20'05 6222
BILL TO
gO-tO
r,:?,
::;:'.~~~--=",-
jJ!~~?d,
H;f'-
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~.J:;4. TEL/J/fJ.,
ani ted Water Idaho
c/o Accounts Payable
P. O. Box 190420Boise, ID 83719-0420
CUSTOMER NO.DUE DATE TOTAL
1/2-/2006 $3,600.
ITEM CERTIFICATE! LATERAL! PARCEL ADDRESS
3545
4111
SHARES RATE AMOUNT
AssessmentAssessment / 500 S. Marden Lane
80.
80.
520.
80.
Bas Unit n~0 Category
CntrlAct 500
- _
S:,)Act
ProjlDj(E&oe.::~~
~- ,.
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Ct2
RCSType i~(;5 C.::t_.-
DeptID
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1 '
Approval
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Direct billing questions to Jo Ballard at 387-3526 Total $3,600.
MC\jt:IVt:U
BOISE CITY CANAL COMPANY
P. O. Box 2157
Boise, ill 83701
NOV 1 .. 2005
UNITED WATER
DATE
11 /9/20~"5
INVOICE NO.
6522
Bill TO
United Water Idaho (2)
c/o Accounts Payable
P. O. Box 190420Boise, ID 83719-0420
'if-o I::)
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CUSTOMER NO.DUE DATE TOTAL
828 1/2/2006 $8,000.
ITEM CERTIFICATE I LATERAL I PARCEL ADDRESS SHARES
100
RATE
80.
AMOUNT
000.Lease Income
Bus Unit DlDO Category
Cotel Act Sub Ac!
AC:iv D
Direct billing questions to Jo Ballard at 387-3526
ata
$8,000.
. .. .
BOISE CITY CANAL COMPANY
P. O. Box 21-57
Boise, ill 83701 DATE
11/9/2005
INVOICE NO.
6543
BILL TO U2,C;?-"
. -,~~-,,,-
Un1te ater a 0
c/o Accounts Payable
P. O. Box 190420Boise, ID 83719-0420
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'2,
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CUSTOMER NO.DUE DATE TOTAL
858 1/2/2006 $24,000.
ITEM CERTIFICATE LATERAL PARCEl ADDRESS SHARES RATE AMOUNT
ease Income
Lease Income 80.760.
Lease Income 1762 80.80.
Lease Income 2683 80.240.
Lease Income 2712 80.80.
Lease Income 2778 80.80.
Lease Income 2886 80.80.
Lease Income 2900 80.80.
Lease Income 2904 80.160.
Lease Income 2919 80.80.
Lease Income 2964 80.80.
Lease Income 2976 80.80.
Lease Income 3081 80.80.
Lease Income 3198 80.80.
Lease Income 3261 to c;;
.....
80.80.
3287 80.Lease Income 00(80.
Lease Income 3288 ,&J 80.80.
Lease Income 3295
g:;
80.80.
Lease Income 3307 80.80.
Lease Income 3317 80.80.
Lease Income 3339 80.80.
Lease Income 3426 80.80.
Lease Income 3435 80.80.
Lease Income 3436 80.80.
Lease Income 3450 80.80.
Lease Income 3471 80.80.
Lease Income 3490
...
80.80.
Lease Income 3494 80.80.'t:Lease Income 3498
..
80.160.
;;:..,
Lease Income 3523
g:;
00(80.160.
Lease Income 3537 80.80.
Lease Income 3543 80.80.
Lease Income 3545 80.200.
Direct billing questions to Jo Ballard at 387-3526 TotalPage 1
, -9 .
BOISE CITY CANAL COMPANY
P. O. Box 2157
Boise, ill 83701 DATE
11/9/200:5
INVOICE NO.
6543
BILL TO
CUSTOMER NO.DUE DATE TOTAL
858 1/212006 $24,000.
ITEM CERTIFICATE LATERAL PARCEL ADDRESS SHARES RATE AMOUNT
1..ease lncome ,j;)bl tiU.~u. uu
Lease Income 3563 80.80.
Lease Income 80.80.
Lease Income 3573 80. 00 80.
Lease Income 3585 80.80.
Lease Income 3624 80.80.
Lease Income 3659 80.80.
Lease Income 3718 80. 00 80.
Lease Income 3722 80.80.
Lease Income 3727 80.80.
Lease Income 3731 80.80.
Lease Income 3766 80.80.
Lease Income 3776 80.80.
Lease Income 3786 80.80.
Lease Income 3794 80.80.
Lease Income 3803 80.80.
Lease Income 3808 80.80.
Lease Income 3817 80.160.
Lease Income 3858 80.80.
Lease Income 3861 80.80.
Lease Income 3864 80.80.
Lease Income 3870 80.80.
Lease Income 3874 80.240.
Lease Income 3876 80.80.
Lease Income 3883 80. 00 80. 00
Lease Income 3889 80.80.
Lease Income 3900 80. 00 80. 00
Lease Income 3901 80.160.
Lease Income 3902 8 O. 00 80. 00
Lease Income 3907 80.240.
Lease Income 3908 80. 00 80 .
Lease Income 3909 3724 Tamarack Dr.80. 00 80 .
Lease Income 3913 80. 00 80. 00
Direct billing questions to Jo Ballard at 387-3526 TotalPage 2
. -
. II .
RECEIVED
NOV 1 ~ 2005
BOISE CITY CANAL COMPANY
P. O. Box 21-57
Boise, ill 83701
BILL TO
UNITED WATER
DATE
11/9/2005
INVOICE NO.
6543
CUSTOMER NO.DUE DATE TOTAL
858 1/2/2006 $24,000.
ITEM CERTIFICATE LATERAL PARCEL ADDRESS SHARES RATE AMOUNT
Lease ncome
Lease Income 3948 80.80.
Lease Income 3951 80.80.
Lease Income 3957 80.80.
Lease Income 3960 80.80.
Lease Income 3962 80.80.
Lease Income 3968 80.80.
Lease Income 3980 80.80.
Lease Income 4012 80.80.
Lease Income 4212 80.80.
Lease Income 4238 80.80.
Lease Income 4260 80.80.
Direct billing questions to Jo Ballard at 387-3526
Page 3 Total $24,000.
,. ..
T NO
for Calendar Year 2006
Notice to Stockholders of the Boise City Canal Company, principal
place of business, Boise, Idaho.
Notice is hereby given that at a meeting of the Board of Directors
of the above named company held on the 3rd day of November, 2005,
an assessment of $80.00 per share was levied upon the capital stock
of the above named company, payable before the 2nd day of January,
2006, to Boise City Canal Company, P. O. Box 2157, Boise, Idaho
83701. Any stock upon which said assessment remains unpaid on the
2nd day of January, 2006, will be delinquent, and available for re-sale.
Delinquent penalties will be charged on assessments that remain
unpaid on and after the 2nd day of January, 2006, in the following
amounts. If you own:
1 to 5 shares
6 to 10 shares
$ 10.
15.
11 to 25 sharesOver 25 shares
20.
25.
A reinstatement fee of $10.00 per share will be charged on any
delinquent assessments to reinstate the stock in the name of theshareholder.
Please make checks or money orders payable to:
Boise City Canal Company
O. Box 2157Boise, Idaho 83701
NO RECEIPT WILL BE ISSUED - YOUR CANCELLED CHECK WILL SERVE AS YOURRECEIPT. Please write the certificate number on your check.
Questions concerning the canal operation should be directed to Carl
Sheets at 387-3526. Billing questions should be directed to Joan
Ballard at 387-3526.
Boise Valley Irrigation Ditch Co.
8750 N Bogart Ln.
Boise, ID 83714
Assessment 2006 Invoice
Date Invoice #
2/23/2D06 8427
Bill To
UNITED W A 1ER
% SCOTT RHEAD
8248 W VICTORY
BOISE ill 83709
RECEIVED
MAR ~ 1 2005
UNITED WATER
Due Date Shares Lateral
42.
Share Qty Rate Per Share Amount
10.430.
2/23/2006
Item Description
Notice is hereby given that on February 6, 2006 an
assessment has been levied by the Board of Directors
upon all Capital Stock of the Corporation for the year of
2006 of$IO.00 per share or fraction thereof and a service
charge of$25.00 per stockholder.
Water Share(s)
This assessment is due and payable on or before April
2006. Any stock which remains unpaid after April
15,2006, will be declared delinquent and subject to a
penalty of Twelve percent (12%) of the assessment. TIle
penalty will be added to the total assessment and no
water will be delivered until the assessment and penalty
are paid in full and delinquent water will be sold as per
Idaho Code.
Service Charge Per Shareholder 25.25.
We appreciate yo'ifJfffiffit payment.Total $455.
Payments/C red its $0.
Balance Due $455.
ntr Act
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Approv Amount
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DIV VEND-
006927206
UNITED STATES DEPARTMENT OF INTERIOR
BuKEAU OF RECLAMATION
PAGE: 3 OF
DOCUMENT-
BD060S10W0623
BILL FOR COLLECTION BILL DATE: 12/21/05
DUE DATE: 01/21/06
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
DESCRI PTION - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - -
BILL NO.SIGNATURE DATE
3. PAYMENT MAY BE ELECTRONICALLY TRANSFERRED TO BUREAU OF RECLAMATION.
THE ELECTRONIC TRANSFER MUST INCLUDE THE FOLLOWING INFORMATION AND
REFERENCE THE BILL NUMBER:
ACH (REMITTANCE EXPRESS)
ABA NO. (ROUTING NO.): 051036706ACCOUNT NO. : 312018ALC 14060905
EFT (FEDWIRE)
ABA NO. (ROUTING NO.) 021030004
ALC 14060905
o~ (2)
"SO 0
Proj ID ((!! c;.o" .51riJ
Res Type -..f~\-\-
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Category t Jo.:.k..-
50 ,"oS-
~O2.aoo
Bus Unit
Activ fD
Res C~t
Dept ID '. 0 ()Loc:uioJ -. ~..J 0 C
APProv Amount .2 S-, 7TC5
--,
RE.C()fiDE~' a~ OON
DENT!t:\L $N/\KEr;.'r' r~~
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FOI!!";Sll-7,-'t.L- i;) Ur r 10:'-use.. ,. lEGtEY. 5/8l::!='f"P\/r:
"'-,-~
W~DSrArlJ$PU\1~
n"'-!CP,'"UL k0U
United StatesDepartment of the Interior
BUREAU OF RECLAMATION
PACIFIC NORTHWEST REGIONAL OFFICE
Arrowrock Division
Boise Project, Idaho
.... ......... ....... ""'" """ .,.........,...,.. -'.. ...... ....... ....,... ..... ........... .
("""JI" o. o"'~ol
RECORD OF EXECUTION
OF CONTRACT
Contractor Boise Water Corporation
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Cont ract No. ,.....
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for legal approval.
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3. Contract executed and transmitted to the following:
Original contract ' RO 360 Duplicate-original to contractor
Copy to: Pro ect Su erintendent Boise, Idaho
" ' RO 440 (2), 704, 933 (V.), 30Field Solicitor , Boise~ IdahoCommissioner, Hashington, D.C., Attention: 400 (4 copies)Chief, Division of Water and land Technical
Services, E&R CenterChief, Div. of ~:lanagement Sup~ort, E&R Center, Attention: . D-9~5 Director, Idaho State Dept. of Water Resources, Statehouse
, Bolse,83.State Watennaster, ~~ater District No. 63, 214 Broadway, Bolse, IO 83/02
Arti cl e
No.
PN DRAFT 2/14/86
Revi sed 3/7/86
Revi sed 5/28/86
Revi sed 8118/86Contract No. 6-07
.,.
10-~J0623
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
MUNICIPAL WATER SERVICE CONTRACT
BETWEEN THE UNITED STATES AND THE BOISE WATER CORPORATION
Contents
Title
Preambl e .
. . . . .' . . . .. . . . . . . . . . . . . .
Expl anatory Recital s . .
' . . . . . . . . . . . . . . . . . .
Term of Contract
. . . . . . . . . . . . . . . . . . . . . .
Water to be Made Avai 1 abl e to the Contractor
. . . . . . . .
Rate and Method of Payment.
. . . . . ~ ,; . . . . . . . .
Measurement and Responsibility for Distribution
. . . . . .
Termination of Contract
. . . . . . . . .. . . . . . . .
Uni ted States not L i ab 1 e for Water Shortage
. . . . . . . .
Contract ~ Not a Water Ri ght
. . . . . . . . . . . . . . . .
Books, Rec.ords and Reports
. . . . . . . . . . . . . . . .
Standard Contract Articles
. . . . . . . . . . . . . . . .
Si gnatu res
. . . . . . . . . . . . . . . . . . . . . . . .
Acknowl edgments .
Exhi bit
Page
No.
PN uf\/"\FT 2/14/86
Revi sed.3/7 /86
Revi sed 5/28/86
Revi sed 8/18/86
Contract No. 6-07-10-WO623 -
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF ,RECLAMATION
MUNICIPAL WATER SERVICE CONTRACT
BETWEEN THE UNITED STATES AND THE BOISE WATER CORPORATION
THIS CONTRACT , made thi 8th day of October , 1 9 86
pursuant to the Act of Congress approved June 17
, 1902 (32 Stat. 388), and
acts amendatory thereof or suppl ementary thereto, and parti cul arly
section 9(c)(2) of the Reclamation Project Act of 1939 (53
Stat. 1187),
coll ecti vely known as the Federal Recl amati on aws, between THE UNITED
STATES OF AMERICA, herei nafter referred to as the United States, repre-
sented by the offi cer executi ng thi s contract, herei nafter referred to as
the Contracti ng Offi cer , and the BOISE WATER CORPORATION , an Idaho Corpor-
ation, with its principal place of business in Boise, Idaho, hereinafter
referred to as the Cont ractor,
WITNESSETH THAT:
EXPLANATORY RECITALS
2. WHEREAS , the United States has constructed and is operating the
Anderson Ranch Dam and Reservoi r on the Boi se River as part of the Boi se
Project in whi eh there i s water stored whi eh can be used for the i rri-
gation of land and for other beneficial uses, which stored water was
appropri ated by the United States pursuant to the 1 aws of Idaho for
benefi ci a 1 use under the Federal Reel amati on Laws; and
Recital 2
WHEREAS , the Contractor , under permit from. the Idaho Department of
Water Resources (IDWR), currently operates four Ranney collectors at sites
situated adjacent to the Boise River as part of their municipal water
supply; and
WHEREAS , as a result of a study required by the IDWR
~ it has been
determi ned that a porti on of the water col1 ected by the Ranney co11 ectors
is obtained from surface flows of the Boise River
, and the Contractor has,
therefore, requested long-term contractual arrangements for 1,000 acre-
feet of storage sp~ce in Anderson Ranch Reservoir to ~rovide
those surface
flows; and
5. WHEREAS, the United States is currently involved in the Boise
Project Power Modification Study (BPPMS) with the primary objective of
arriving at recommendations for hydropower development at Boise River dams
in concert with other functional needs of
the Boise River system including
those of the Contractor; and
6. WHEREAS, the BPPMS operati on studi es for the Boise Ri ver system
show that the United States can effectively change the use of the active
power space in Anderson Ranch Reservoir to joint municipal and industrial
(M&I) and power, thus making reservoir space available to the Contractor.
Such joint use of reservoir space will not impair the efficiency of the
Boise Project for irrigation nor interfere with the operation of the
project for flood control, hydroelectric power generation, or other
ex i st in g benefi ci a 1 uses; and
WHEREAS , the United States wi 11 secure from the IDWR appropri ate
water use authorizations applicable to the USe of 0ater under Idaho law;
Recitals 3, 4 , 5, 6,
WHEREAS , compliance with the National Environmental Policy Act of
1969 has been met through a Categori cal Excl usi on Checkl i st dated April 2
1985 , which evaluated the impacts of changing the use of
this part of the
water storage space in Anderson Ranch Reservoi r from power to joi nt-use
M&I and power.
NOW THEREFORE , in cons i derati on of the mutual and dependent
covenants herein contained, the parties hereto agree as follows:
TERM OF CONTRACT
9. This contract shall become effective on the date first-above
written and will conti nue in effect for a peri . 'Ye . s unless pre-~I I?i viously terminated under the provisions of Artici~~ ereof: Provided
That upon expi rati on of the 40-year term, thi s contract may be renewed
taking into consideration cdnditions then existing and under provisions
mutually acceptable to the parties.
WATER TO BE MADE. AVAILABLE TO THE CONTRACTOR
10.(a) During the term of this contract, the United States shall
make avai labl e to the Contractor and the C6ntractor shall pay for , as
provided in Article. 11 hereof , the water .from 1 000 acre-feet of storage
space in Anderson Ranch Reservoi All acti ve space in Anderson Ranch
Reservoi r wi 11 be treated 'with the same pri ority for determi ni ng the
amount of stored water available.Losses or shortages resulting from the
storage operati on wi 11 be prorated equally.
(b)Up to 1 000 acre-feet of water from storage space in Anderson
'::::.:,;.,
Ranch Reservoir will be released by the United States each year.
The
amount of water released from this space, the rate at which this water is
Recita 1 8Articl es 9,
re 1 eased, and the t i mi n9 of these releases wi 11 be done as di rected by the
State Watermaster.Unused water in thi s space may be hel d over in
Anderson Ranch Reservoi r from year to year.
RATE AND METHOD OF PAYMENT
11.( a)Each year the Contractor shall pay for 1,000 acre-feet of
storage space in AndersOn Ranch Reservoi r at the rate of $17.54 per acre-
foot, whether or not the water .in this space is utilized and regardless of
any held over water.
(b)From time to time, but not less often than once every
5 years , the rate per acre-foot (including operation, maintenance, and
replacement costs) will be reviewed by the Contracting Officer and
revised, if necessary, taking into account any changes in project costs,
allocation of costs, interest rates, or other related factors.
(c)The initial payment to the United States for the first year
water shall be due upon executi on of thi s contract
(d)Subsequent annual payments shall be due on January 1 of the
. year following the date of this contract and each year thereafter:
Provided , That the dates of payment may be changed if mutually agreeable
to the Contracting Officer and the Contractor.
(e) All payments from the Contractor to the United States under
this contract shall. be made by the medium requested by the United States
on the date payment is due.The requi red .method of payment may i ncl ude
checks, wi re transfers, or other types of payment speci fi ed by the Uni ted
States.
Article 11
MEASUREMENT AND RESPONSIB ILITY FOR DISTRIBUTION
12.(a) The water to be furni shed to the Contractor wi 11 be measured
by facilities operated by the United States and delivered into the Boise
Ri ver. At the opti on of the United States, the Anderson Ranch Reservoi r
stored water to which the Contractor is entitled may be measured and
del ivered to or for the Contractor at the outlet works of Anderson Ranch
Reservoi r , Arrowrock Reservoi r, or Lucky Peak Reservoi The Contractor
shall incur all transportation and administration losses from the point of
such deli very to the place of use.
(b)The Contractor agrees to provide measuring devices which are
acceptable to the State Watermaster in charge of the distribution of water
from the Boi se Ri ver at or near the Contractor I s poi nt of di versi on to
measure the quantit i es of surface and ground water collected by the Ranney
collectors.The Contractor is responsible for making any arrangements
with the State of Idaho for the call ecti on of such water.The Contractor
shall pay any charges required by the IDWR for the State Watermaster
handling qr administration of this water.
( c)The United States shall not be responsible for the control,
carriage, handling, use, disposal, or distribution of water taken by the
Contractor hereunder , and the Contractor shall ho1 d the United States
harm1 ess on account of damage or cl aim of damage of any nature whatsoever,
including property damage, pe~sona1 injury, or death arising out of or
connected with the control, carriage, handling, use, disposal, or
distribution of such water by the Contractor.
Art i c 1 e
TERMINATION OF CONTRACT
13.(a) Thi s contract sha 11 be termi nated and water servi ce hereunder
shall cease at the option of the United States at any time if the Contrac-
tor is delinquent in payments required under this contract or upon failure
of the Contractor to comply with other provisions .herein or to abide by
any lawful no~ice, order, rule, or regulation of the United States and the
State of Idaho, no~ or hereafter establ i shed affecti ng water servi
hereunder:Provided, That the United States notifies the Contractor of
any deli nquency or defi ci ency by wri tten not ice and the Cont ractor fail s
to comply with said notice within 60 days.
(b)The Contractor shall have the ri ght to termi nate thi s
contract for any reason:Provi ded , That not ice of the intent by the Con~
tractor to teminate this contract shall be in writing to the Contracting
Officer at least 60 days prior to the termination date proposed:Proyi ded
further , That termination under this provision shall become effective no
sooner than January 1 of the next calendar year following such written
noti ce.
( c)Termination of this contract for any cause shall not relieve
the Contractor of any obligations incurred by way of this contract prior
to termination.
UNITED STATES NOT LIABLE FOR WATER SHORTAGE
14.On account of drought, errors -in operation, or other causes, there
may occur at times a shortage duri ng any year in the quantity of water
available to the Contractor by the United States pursuant to this con-
tract, and in no event shall any liability accrue against the United
States or any of its officers, agents, or employees for any damage direct
Articles 13, 14
or indirect, arising therefrom.No proportionate adjustment in payments
requi red wi 11 be made to the extent water is not avai 1 abl e in Anderson
Ranch Reservoir for diversion under this contract.
CONTRACT - NOT A WATER RIGHT
15.No provi s ions of thi s contract, nor any renewal thereof , nor the
turni shi ng of water hereunder wi 11 be construed to either bi nd the United
States after the expi rati on of thi s contract or as the baSi s of a perma-
nent water ri ght.
BOOKS, RECORDS AND REPORTS
16.The Contractor shall estab ish and ma i nta in accounts and other
books and records pertaining to admini~tration of the terms and conditions
. of this contract, including: water supply data, water use data, and other
matters that the Contracting Officer may require. Reports thereon shall
be furnished as the Contracting Officer may require.Subject to appli-
cable Federal laws and regulations, each party to this contract shall have
the ri ght duri ng offi ce hours to exami ne and make copi es of the other
party I s books and records rel ati ng to matters covered by thi s contract.
STANDARD CONTRACT ARTICLES
17.This contract is subject to standard contract provisions listed
below.The full text of these arti cl es is attached as Exhi bit A and is
hereby made a part of thi s contract.
CHARGES FOR DELINQUEN1 PAYMENTS
. GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT
Non CES
CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS
OFF IC IALS NOT TO BENEF IT
Articles 15 , 16 , 17
F. ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED
G. RULES, REGULATIONS , AND DETERMINATIONS
H. QUALITY OF WATER
I. WATER AND AIR POLLUTION CONTROL
J. WATER CONSERVATION
K. . EQUAL OPPORTUNITY
. L. COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS
IN WITNESS WHEREOF , the parti es hereto have si gned thei r names the
day and year fi rst above written.
UNITED STATES OF AMERICA
rl!. w. 7 c::;: egional Director, PN egionBureau of Recl amati on
(SEAL)BOISE WATER CORPORATION
Attest:Title:
By t':
~~:-
Title:
Article 17 (Continued)
STATE OF IDAHO
County of Ada
On thi s , 1986 , personally
appeared before me 7lE to me known to be the
offi c.i a 1 of the United tates of Amer; that executed the withi n and.foregoi ng instrument and acknowl edged sai d instrument to be the free and
voluntary act and deed of said United States, for the uses and purposes
therei n menti oned, and on oath stated that he was authori zed to execute
said instrument.
IN WITNESS WHEREOF , I have hereunto set my hand and' affixed
official seal the day and year first above written.
(SEAL)
**********
STATE OF IDAHO
: ss
County of Ada
On this I'i't/J..day of 4Alz..-....h..---, 1986 , before me
'L'
~---- ~
"""A/~L Notary Public, personally appeared
~~
and ~ 7-known 0 me to be respectively the Preside and Secretary of t e Boise
Water Corporation, and the persons who executed the within instrument on
beha 1 f of said corporation, and acknowl edged to me that sa i d corporat ionexecuted the same. .
I N WITNESS WHEREOF, I have hereunto set my hand and a ffi xed off; ci a 1 seal the day and year fi rst above wri tten.
(SEAL)L~ .a/
.--
Notary ; n an or the
State of d-~Residing at ~~
My commi ss ion expi res: '9 -~71'- cf g'
EXH IB IT A
STANDARD CONTRACT ART ICLES
Contract No. 07 lO-vJO623 between the United States of Ameri ca and the
Boise Water Corporation, hereinafter called the Contractor
CHARGES FOR DEL INQUENT PAYMENTS
A. (1). The Contractor shall be subject to interest, administrative and penalty charges on delinquent
installments or payments, pursuant to section 11 of the Debt Col1ection Act of 1982 (Public Law 97-365). Whena payment is not recei ved wi thi n 30 days of the due date, the Contractor shall pay an interest charge for eachday the payment is de Ii nquent beyond the due date. When a payment becomes 60 days deli nquent, the Contractor
shall pay an administrative charge to cover additional costs of billing and processing the delinquent payment.
When a payment is delinquent 90 days or more, the Contracror shall pay an additional penalty charge of.
6 percent per year for each day the payment is deli nquent beyond the due date. Further, the Contractor sha
pay.any fees incurred for debt collection services associated. with . a delinquent payment.
(2) The interest charge rate shall be the greater of the rate prescribed quarterly in the FederalRegisterby the Department of the Treasury for application to overdue payments, or the interest rate of
5 percent per month prescribed by section 6 of the Recl amation Project Act. of 1939 (Pub1 ic Law 76-260).. interest charge rate shall be determined as of the due date and remain fixed for the duration of the
de 1 i nquent peri od.
The -
(3) When a partial payment on a delinquent account is received, the amount received shall be appliedfi rst to the penal ty and admi ni strati ve charges, second, to the accrued interest, and thi rd to the overduepayment.
GENERAL OBLIGATION--BEHEFITS CONDITIONED UPON PAYMENT
B. (1) The ob 1 i gati on of the Contractor to pay the United States as provi ded in thi s contract is ageneral obl igation of the Contractor notwithstanding the manner in which the obligation may be distributed
among the Contractor s water users and notwithstanding the default of individual water users in their
' '
obl igations to the Contractor.
(2) The payment of charges becoming due hereunder is a condition precedent to receiving benefits
under this contract. The United States shall not make water available to the Contractor through . project
faci 1 i ties duri ng any peri od in whi ch the Cont ractor may be in arrears in the advance payment of water rates
due the Uni ted . States. The Contractor shall not furni sh' water made avai 1 abl e pursuant to thi s contract for
lands or parties which are in arrears in the advance payment of water rates levied or established by theContractor.
NOTICES
C. Any not ice, demand, or request authori zed or requi red by thi scontract sha 11 be deemed to have been
given, on behalf of the Contractor
, .
when mailed, postage prepaid, or delivered to the Regional Director,
PN Region, Bureau 'of Reclamation, Box 043, 550 West Fort Street, Boise, Idaho 83724 , and on behalf of the
Uni ted States, when mai 1 ed, postage prepai d, or de 1 i vered to the Manager of the Contractor, Boi se Water
Corporati on, P.O. Box 7488, Boi se, Idaho 83707. The desi gnati on of the addressee or the , address may be
changed by notice given in the same manner as provided in this article for other notices.
CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS
D. The expenditure or advance of any money or the performance of any obligation of the United States
under thi s contract sha 11 be cont i ngent upon appropri at i on or allotment of funds.. Absence of appropri ati on 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.
OFFICIALS NOT TO BENEFIT
E. No Member of or Delegate to Congress, Resident Commissioner ~r official of the Contractor shall
benefi t from thi s contract other than as a water user or 1 andowner in the same manne~ as other water users or
andowners.
ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED
F. The provisions of this contract shall apply to and bind the successors and assigns of the partieshereto, but no assignment or transfer of this contract or any right or interest therein shall be val id unti iapproved in writing by the Contracting Officer.
RULES, REGULATIONS, AND DETERMINATIONS
G. (1) 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 promulgatedby the Secretary of the Interior under Reclamation law.
(2) The Contracting Officer shall have the right to make determinations necessary to administer this
contract that are consistent with the expressed and implied provisions of this contract, the
laws of theUn i ted States and the State, and the ru1 es and regu 1 at ions promu1 gated by the Secretary of the Interi or. Suchdeterminations shall be made in consultation with the Contractor.
QUALITY OF WATER
H. - The op.eration and maintenance of project facilities shall be performed in such manner as ispracticable to maintain the quality of raw water made available through such facilities at the highest levelreasonably attainable, as determined by the Contracting Officer. The United States does not warrant thequality of water and is under no obligation to construct or furnish water treatment facilities to maintain or
better the qual ity of water.
WATER AND AIR POLLUTION CONTROL
I. The Contractor, in carrying out this contract , shall comply with all applicable water and air pollu-tion laws and regulations of the United States and the State of Idaho and shall obtain all required permits or1 icenses from ,the appropriate Federal, State , or local authorities.
WATER tONSERVATION
J. Prior to the delivery of water provided from or conveyed through federally constructed or federallyfi nanced faci 1 it i es pursuant to thi s contract, the Contractor sha 11 develop an effecti ve water conservati program acceptable to the Contract i ng Offi cer. The water conservat i on program sha 11 contai n defi nite waterconservation objectives, appropriate economically feasible water conservation measures, and time schedules formeet i ng those objectives. At subsequent 5-year i nterva 1 s, the Contractor sha 11 submit a report on the resul of the program to the Contracting Officer for review.. Based on the conclusions of the review , the ContractingOfficer and the Contractor shall consult and agree to continue or to revise the existing water conservation
program.
EQUAL OPPORTUNITY
Ouri ng the performance of thi scontract, the Contractor agrees as follows:
. (1) The Contractor will not discriminate against any employee or applicant for employment because ofrace, color, religion , sex, or national origin. The Contractor will take affirmative action to. ensure thatapplicants 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, incl uding apprenticeship. The Con-tractor agrees to post in conspicuous places, available to employees and applicants for employment, notices tobe provided by the Contracting Officer setting forth the provisions of this nondiscrimination clause.
(2) The Contractor will, in all solicitations or advertisements for employees placed by or o~ behalf
of the Contractor, state that all qualified applicants will receive consideration for employment . withoutdiscrimination because of race, color, religion, sex, or national origin.
(3) The Contractor will 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 Contrac-ting Officer, advising the said labor union or workers ' representative of the Contractor s commitments underSecti on 202 of Executi ve Order 11246 of September 24 , 1965, and shall post copi es of the not i ce j n conspi cuousplaces available to employees and applicants for employment.
(4) The Contractor will comply with all provisions of Executive Order No. 11246 of September 241965, as amended, and of the rules, regulations, and relevant orders of the Secretary of Labor.
~ 5) The Contractor wi 11 furni sh all i nformat i on and reports requi red by sa i d amended Execut i ve Orderand by the rules , ,regulations, and orders of the Secretary of Labor , or pursuant thereto, and will permitaccess to its books, records, and accounts by the ,Contract i ng Offi cer and the Secreta ry of Labor for purposesof investigation to ascertain compliance with such rules, regulations, and orders.
(6) In the event of the Contractor s noncompliance with the nondiscrimination clauses of this con-
tract or with any of the such rules , regulations, or "orders, this contract may be canceled, terminated, or
suspended, in whole or in part, and the Contractor may be declared ineligible for further Government contracts
in accordance with procedures authori zed in sai d amended Executi ve Order, and such other sanctions may beimposed and remedies invoked as provided in said Executive Order, or by rule , regulation , or order of theSecretary of Labor, or as otherwise provided by law.
(7) The Contractor will i nc 1 ude the provi s ions of paragraphs (1) through (7) in every subcontract orpurchase 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 will be binding upon each subcontrac-tor or vendor.- The Contractor will take such action with respect to any subcontract or purchase order as maybe directed by the Secretary of Labor as a means of enforcing such provisions, including sanctions for noncom-
pliance: Provided however , That in the event the Contractor becomes involved in , or is threatened with1 it i gat i on wi t a subcontractor or vendor as a resul t of such di rect i on , the ContractDr may request the Un i tedStates to enter into such litigation to protect the interests of the United States.
COMPLIANCE WITH CIVIL RIGHTS LAWS .AND REGULATIONS
L. (1) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 (42 U.C. 2000d),Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the Age Discrimination Act of 1975
(42 U.C. .6101, et seq.) and any other applicable civil rights laws, as well as with their respective imple-menting regulations and guidelines imposed by the U.S. Department of the Interior and/or Bureau ofReclamation.
(2) These statutes require that no person in the United States shall, on the grounds of race, color,
national origin, handicap, or age, be excluded from participation in~ be denied the benefits of , or be other-wise subjected to discrimination under any program or activity receiving financial assistance from the Bureauof Reclamation. By executing this contract, the Contractor agrees to immediately take any measures necessary
to implement this obligation, including permitting officials of the United States to inspect premises,programs, and documents.
(3) 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 afterthe date hereof to the Contractor by the Bureau of Reclamation, including fnstallment payments after such date~n account of arrangements for Federa 1 fi nanci al assistance whi ch were approved before .such date. The Can-t ractor recognizes and agrees that such Federal assi stance wi 11 be extended in rel i ance on the representat ionsand agreements made in this article, and that the United States reserves the right to seek judicialenforcement thereof.
I~ REPlY 440REFER TO:
Memorandum
To:
From:
Subj ect:
United States Department of the Interior
BUREAU OF RECLAMATION
PACIFIC NORTHWEST REGION
FEDERAL BUILDING &: U.S. COURTHOUSE
BOX 043 - 550 WEST FORT STREET
BOISE. IDAHO 83724
OCT (; 1986
Regional Director, Boise, Idaho
Regional Supervisor of Water, Power and Lands , Boise, Idaho
Proposed Municipal Water Service Contract (No. 6-07-10-W0623)Between the Uni ted States and Boi se Water Corporati on
1. Introduction Enclosed for your review and signature is a proposed
municipal water service contract between the United States and the Boise
Water Corporation (BWC). The proposed cont~act, . drafted pursuant to
secti on 9(c) (2) of the Recl amati on Project Act of 1939 (53 Stat. 1187)
provides that the United States will furnish the BWC 1,000 acre-feet of
Anderson Ranch Reservoi r storage space annually.
2. Contracting Entity, Legal and Policy Considerations BWC is a munic-
ipal corporation formed under Ida o statutes .and is an acceptable legal
entity for contracting with t~e United States. BWC is the primary
domestic water supplier to the oity of B6ise, serving a population of
approximately 100,000.
The proposed contract complies with Reclamation and State laws. Contractnegoti ati ons were conducted in accordance with Bureau procedures for
public participation in water service and repayment contract negotiations
and meet the requirements of section 226 of the Reclamation Reform Act of1982. Notice of intent to begin contract negotiations was included in
. our Federal Regi ster Quarterly Status Tabul ati on of Proposed . ContractualActions, 'published January 30, April 29, and July 25 , 1986. A legal
notice of the pending contract action was published in the IdahoStatesmanApri 1 14, Apri 1 15, and Apri 1 16, 1986. There has been no
pub 1 i c concern evi de need over the contract and no controversy exi sts that
should require additional consideration prior to your approval.
The Field Solicitor, Boise, Idaho, finds the contract to be legallysufficient. Compliance with the National Environmental Policy Act of
1969 has been met through a Categorical Exclusion Checklist dated
Apri 1 2, 1985, whi ch eval uated the impacts of changi ng the use of thi
part of the water storage space in Anderson Ranch Reservoi r from' power to
joint-use municipal and industrial (M&I) and power. Such joint-use of. reservoir space will not impair the efficiency of the Boise Project forrri gati on nor interfere wi th the aperati on of the project for floodcontrol, hydroelectric power generation, or other existing beneficialuses.
3. Backg~ound In additi on to ground water supply sources, the BWC
operates three Ranney Coll ector systems adjacent to the Boi se Ri ver underground w~ter permits issued by the State of Idaho, Department of WaterResources (IDWR). In anticipation of findings from a study required by
the IDWR , the BWC appl ied to the Bureau for storage water in 1983. Aninterim 2-year contract was sent to the BWC for 5, 000 acr~-feet of waterfrom Lucky Peak noncontracted space but was not executed whi 1 e the BWCwas involved in discussions with the IDWR over what percentage of the
water withdrawn from the Ranney Call ector systems is surface water and
what percentage is ground water. As a resul t of the study and a recentagre~nent between the BWC and the IDWR , it has been determi~ed that a
portion of the water pumped from the collectors is obtained from surface
flows of the Boise River. The BWC applied for 1 000 acre-feet of storagespace in Anderson Ranch Reservoir to provide those surface flows.
Water from the storage space contracted for in Anderson Ranch Reservoi rwould be delivered to BWC via the Boise River on a schedule which meets
the needs of the contractor. All space in Anderson Ranch Reservoi r istreated with 1 i ke pri ority regardi ng storage rights. In determi ni ng theamount of stored water available, losses resulting from the storage
operati on are prorated equally. These conditi ons , as well as the factthat stored water measured at, the outl et works and conveyance losses to
the point of diversion are borne" by the contractor, were considered inthe amount o~ storage space appll ed for.
4. Contract Negotiations, Terms and Conditions The contract providesthat the United States will furnish the BWC 1 000 acre-feet of storagespace annually for a period of 40 years unless previously terminated
under the provisions of Article 13.
Each year BWC wi 11 pay for the 1 000 acre-feet of storage space in
Anderson Ranch Reservoi r at the rate of $17.54 per acre-foot, whether ornot the water in this space is utilized and regardless of any held' overwater. The $17.54 price per acre-foot was computed by taking the origi-
nal construction costs for Anderson Ranch Dam indexed by 3 percent per
year, and amorti zed over a 40-year peri od at a February 1986 interest
rate for 3D-year Treasury ' bonds of 9 3/8 percent. The use of a currentinterest yi e 1 d on 3D-year Treasury bonds was requested' in the Commi sioner s January 16, 1986 , memorandum approving our November 15, 1~85request to i niti ate contract negoti ati ons. Contract provi sions~i ncl ude arequi rement that not 1 ass often than once every 5 years, the rate peracre-foot (including operation, ~aintenance, and replacement costs) will
be reviewed by the United States and revised
, if necessary, taking intoaccount any changes in project costs, allocation of costs, interestrates, or other rel ated factors.
The proposed contract i ncl udes current standard art i cl es appropri ate formunicipal water service contracts.
5. Fi ndings and Recommendati ons Contract provi si ons have been dpprovedand accepted by BWC officials. We believe the proposed contract is the best interests of the Un i ted States and the BWC. By the authorHygranted you to execute COrt tracts as set forth in the
ColTlYli ss i oner I smemorandum of October 17, 1984, we recommend your execution of theattached subject contract, ast des i gnated "Revi sed 8/18/86.
t: /:!ad.
At tachment
Concur:
~.
W,
/C;::;:
zcc
Regi ona 1 Di rector O~7. e5'. /9t!J
Date .
MAR 2008
8:::J
TAKE PRIDEs
IN AM ERICA
RECEIVED
MAR = 7 2006
UNITED WATER
United States Department of the Interior
PN-1828
WTR-
BUREAU OF RECLAMATION
Pacific Northwest Region
1150 North Curtis Road, Suite 100
Boise, Idaho 83706-1234
IN REPLY REFER TO:
Mr. Scott Rhead
United Water Idaho, Inc.
O. Box 190420
Boise, ID 83719-0420
Subject: Lucky Peak Reservoir Charge, Boise and Lucky Peak Projects, Idaho
Dear Mr. Rhead:
The following concerns the operation and maintenance (O&M) charge under Repayment Contract No.
05XX1O1468 (Contract). In accordance with the Contract, United Water Idaho, Inc.'s (United Water)
share, based upon its percentage of active capacity, of the estimated costs of O&M of Lucky Peak
Dam and Reservoir (Lucky Peak) for 2006 is $2 695.00. This charge is comprised of the O&M rate
per acre-foot (AF) of storage of $2.45 set forth in our December 28 2005 , notice multiplied by
United Water s percent of the active capacity, which is equivalent to 1 100 AF so long as the reservoir
has an active capacity of 278 200 AF.
Below is a statement of the amount due:
$2.695.for 2006 Estimated O&M Charge due on or before April 1 , 2006.
If you have any questions regarding this charge, please contact Ms. Kay Henson at 208-378-5073.
Sincerely,
. A "
Michele Zi erman
Regional Finance Officer
DIV VEND-ID
006927206
UNITED STATES DEPARTMENT OF INTERIOR
BUREAU OF RECLAMATION
PAGE: 1 OF
DOCUMENT- ID
BD060510M1468
BILL FOR COLLECTION BILL DATE: 03/02/06
DUE DATE: 04/01/06
MAIL TO: BUREAU OF RECLAMATION
PN REGION: PACIFIC NORTHWEST
O. BOX 894240
LOS ANGELES, CA 90189-4240
AMOUNT DUE 695.PAYER:UNITED WATER IDAHO, INC
PO BOX 190420
BOISE ID 83719-0420
FOLD HERE
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
DESCRIPTION- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
000 THIS BILL IS IN ACCORDANCE WITH CONTRACT NO. 059D101468.
LUCKY PEAK DAM AND RESERVOIR
2006 ESTIMATED O&M 695.
TOTAL AMOUNT DUE 695.
PLEASE CALL KAY HENSON ~208-378-5073 FOR ANY QUESTIONS.
PLEASE NOTE THE DUE DATE PRINTED ON THIS BILL. BILLS NOT PAID IN
FULL BY THE DUE DATE WILL BE ASSESSED 'THE FOLLOWING:
INTEREST PER ANNUM FROM THE DATE OF THE BILL THROUGH THE
TO ENSURE PROPER CREDIT PLEASE RETURN LOWER PORTION WITH YOUR PAYMENT
- - - ----- --- --- -- - - -- - --- -- - - - - -- - - - ------- - - - - ---- - -- ---- -- - - - -- - --- - ----- - - --
LN# TC TT FND PROGRAM JOB NO. ORGANIZ RSRC
001 BD AV U4N 00032532 4000000 1018200
- - -
DESCRIPTION - - -
- - - -
AMOUNT- - 2006 O&M $2 695.
DOCUMENT ID: BD060510M1468
VEND-ID: 006927206
VENDOR NAME: UNITED WATER IDAHO , INC
DOC TYPE: 0
INTEREST
ADMINISTRATIVE CHARGES
PENALTY
AMOUNT DUE THIS BILL $2,695.
IMPORTANT INFORMATION ON REVERSE SIDE
DIV VEND- ID
006927206
UNITED STATES DEPARTMENT OF INTERIOR
BUREAU OF RECLAMATION
PAGE: 3 OF
DOCUMENT-
BD060510M1468
BILL FOR COLLECTION BILL DATE: 03/02/06
DUE DATE: 04/01/06
- -- - - - - - - - - - - - --- - - - -- - - --- - - - - -- -
DESCRIPTION- -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - --
BILL NO. SIGNATURE DATE
3. PAYMENT MAY BE ELECTRONICALLY TRANSFERRED TO BUREAU OF RECLAMATION.
THE ELECTRONIC TRANSFER MUST INCLUDE THE FOLLOWING INFORMATION AND
REFERENCE THE BILL NUMBER:
ACH (REMITTANCE EXPRESS)
ABA NO. (ROUTING NO.): 051036706ACCOUNT NO. : 312018ALC 14060905
EFT (FEDWIRE)
ABA NO. (ROUTING NO.) 021030004
ALC 14060905
United States Department of the Interior
.I'
IN REPLY REFER TO,
BUREAU OF RECLAMATION
Pacific Northwest Region
1150 North Curtis Road, Suite 100
Boise, Idaho 83706-1234
TAKE PRIDE"fNM"tItERICA
PN-3323
WTR-JAN 1 1 2006
REceiVED
JAN f 8 2006
UNITED WATER
Mr. Scott Rhead
United Water Idaho, Inc,
O. Box 190420
Boise, ID 83719-0420
Subject: Contract No. 05XXlO1468 with United Water Idaho Inc. for Lucky Peak Reservoir Storage
Boise and Lucky Peak Projects, Idaho
Dear Mr. Rhead:
Enclosed is an original of the subject contract for reservoir storage in Lucky Peak Dam and Reservoir
(Lucky Peak) that has been executed between United Water Idaho Inc. and the United States. Also
enclosed is an original of the partial assignment of water service contract between the Boise City Canal
Company and United Water Idaho Inc. that has been approved by the United States.
As set forth in Article 9, the contract makes available to United Water Idaho Inc. stored water accruing to
39549 percent of the active capacity of Lucky Peak. This percent would , so long as Lucky Peak has anactive capacity of 278 200 acre-feet (AF), be treated as the equivalent of 1 100 AF of active capacity.
An end of the irrigation season accounting of actual water deliveries for 2005 will be made to detennine
the appropriate amount, if any, to credit towards the construction obligation identified in Article 11 of thecontract.
This letter also serves as written notice of my acceptance of the evidence provided pursuant to
Article 2'Z(h) Confinnation of Contract in the General Provisions that United Water Idaho Inc. is a legally
constituted entity and that the contract is lawful, valid, and binding on both parties.
I appreciate the many efforts of those involved for the successful negotiation and execution of the contract.
If you have any questions regarding the contract, please contact Mr. Ryan Patterson at 208-378-5340 orMr. Larry Parsons at 208-378-5346.
teereI , r. .
-k\vjJ
\!j.O. William McDonald
~~
Regional Director
.--
Enclosures
cc: See next page,
cc: Continued from previous page.
Mr. Lee Sisco
Boise River Watel1Tlaster
6616 Overland Road
Boise, ID 83709
Lieutenant Colonel Randy L. Glaeser
Commander and District Engineer
S. AI1TlY Corps of Engineers
201 N. Third Avenue
Walla Walla, WA 99362-1876
Mr. Karl Dreher
Director
Idaho Department of Water Resources
322 East Front Street
O. Box 83720
Boise, ID 83720-0098
(w/copy of encls to each)
Article
PN Draft 06/18/04
Revised 07/23/04
Revised 09/03/04
Revised 06/29105
Last Revised 10/18/05
Contract No. 05XX1O1468
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
Boise and Lucky Peak Projects, Idaho
REP A YMENT CONTRACT BETWEEN THE UNITED STATES OF AMERICA
AND UNITED WATER IDAHO INC.
PROVIDING FOR LUCKY PEAK RESERVOIR STORAGE
Contents
Title
Page
No.
Preamble ...........................................................................................................
Explanatory Recitals.........................................................................................
Definitions ...................................................................................
;....................
Term of Contract and Termination of the July 1966 Contract, September 1968
Contract, Assigned Portion of the March 1968 Contract, and 2003 Contracts
Water to be Available to the Contractor ...........................................................
Place of Delivery and Measurement and of Use of Water """"""""""""""'" 5-
Construction Charge Obligation .......................
......... .......... ........ ...,....... """""
6- 7
Operation and Maintenance Charge................................................................. 7-
Elements of Operation and Maintenance Charge .............................................
Charges for Delinquent Payments.................................................................... 8-
Medium for Transmitting Payments................................................................. 9
Rights to Beneficial Use of Water ...............
.................... .................................
Water Supply and Operation of the Reservoir........................................,......... 9-
No Liability for Water Shortages or Interruptions """"""""""""""""""""'" 12-
Remedies for Defaults by the Contractor .........................................................
Waiver of Default ....
........ .................................. ...... ..... ........ ............................
Title to Project Works ..................................................................................,...
General Obligation - Levies Therefor ..............................................................
Covenant Against Contingent Fees .
.......................................,.............,...........
Opinions and Determinations .........................................................................., 14-
Compliance with Laws, Rules and Regulations ...............................................
Notices............... ....... ......................... ,.........,.................,.,.,..............................
General Provisions................................... ..'.....
.......... ......,.. ..... """""""""'" ""
Signatures ................................................."..........,.......""""""""""""""""'
'"
Acknowledgments ..........,.................................."......,...,...""""""""""""""'" 18
Exhibit A
PN Draft 06/18/04
Revised 07/23/04
Revised 09/03/04
Revised 06/29/05
Last Revised 10/18/05
Contract No. 05XXI0l468
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
Boise and Lucky Peak Projects, Idaho
REPAYMENT CONTRACT BETWEEN THE UNITED STATES OF AMERICA
AND UNITED WATER IDAHO INC.
PROVIDING FOR LUCKY PEAK RESERVOIR STORAGE
THIS CONTRACT, made this 11 th day of January 2006, between the UNITED
STATES OF AMERICA, hereinafter called the "United States " acting through the Contracting
Officer, pursuant generally to the Act of June 17, 1902 (32 Stat. 388), and acts amendatory thereof
or supplementary thereto , particularly, but not limited to, Section 9(c)(1) of the Act of August 4
1939 (53 Stat. 1187), as amended and supplemented, the Act of December 22, 1944 (58 Stat. 887),
and the Act of July 24, 1946 (60 Stat. 641), all collectively known as the Federal Reclamation
laws, and UNITED WATER IDAHO INC. in Idaho, an Idaho corporation organized and existing
pursuant to the laws of the State ofIdaho, with its principal place of business in Boise, Idaho
hereinafter called the "Contractor.
WITNESSETH, THAT:
The following statements are made in explanation:
EXPLANA TORY RECITALS
WHEREAS, the United States has constructed and operates the Lucky Peak Dam
and Reservoir on the Boise River in which there is water stored which can be used for the
inigation of land and for other beneficial uses, for which the United States holds License
No. 63-03618, issued on September 27 2002, by the State of Idaho to the United States; and
WHEREAS, the Contractor acquired all of South Boise Mutual Irrigation
Company, Ltd.' s right, title, and interest to receive stored water from Lucky Peak Reservoir on the
Boise River in Idaho under Contract No. 14-06-100-5590, dated July 26 , 1966 , as may have been
amended and supplemented, hereinafter called the "July 1966 contract " and entered into Contract
No. 03 XX 10 1369, dated March 4, 2003, a miscellaneous purposes water service contract with the
United States for the remaining period of the July 1966 contract.
WHEREAS, the Contractor acquired all of Capital View Irrigation District's right
title, and interest to receive stored water from Lucky Peak Reservoir on the Boise River in Idaho
under Contract No. 14-06-100-6342, dated September 10, 1968 , as may have been amended and
supplemented, hereinafter called the "September 1968 contract " and entered into Contract No.
03XXlO1370, dated March 4 2003 , a miscellaneous purposes water service contract with the
United States for the remaining period of the September 1968 contract.
WHEREAS, the Contractor acquired thirty percent of Boise City Canal Company
right, title, and interest to receive stored water from Lucky Peak Reservoir on the Boise River in
Idaho under Contract No. 14-06-100-6190, dated March 13, 1968, as may have been amended and
supplemented, hereinafter called the "assigned portion of the March 1968 contract."
WHEREAS , the Contractor desires to enter into a repayment contract for the use of
Lucky Peak stored water for inigation demands of municipal customers and the United States
Army Corps of Engineers has concurred with the United States Bureau of Reclamation entering
into contracts for stored water from Lucky Peak Reservoir to be used for miscellaneous inigation
purposes , including the irrigation of lawns, gardens , parks , and landscaping and delivered through
a municipal delivery system; and
NOW, THEREFORE, in consideration of the mutual and dependent covenants
herein contained, it is hereby mutually agreed as follows:
DEFINITIONS
Where used in this Contract, the terms:
(a)July 1966 contract" shall mean the specific contract South Boise Mutual
Irrigation Company, Ltd. and the United States entered into on July 26, 1966, which is numbered
Contract No. 14-06-100-5590 , as may have been amended and supplemented.
(b)September 1968 contract" shall mean the specific contract Capital View
Irrigation District and the United States entered into on September 10, 1968 , which is numbered
Contract No. 14-06-100-6342, as may have been amended and supplemented.
(c)Assigned portion of the March 1968 contract" shall mean the thirty percent
portion the Contractor acquired of the specific contract Boise City Canal Company and the United
States entered into on March 13 1968, which is numbered Contract No. 14-06-100-6190 , as may
have been amended and supplemented.
(d)2003 contracts" shall mean the specific contracts the Contractor and the
United States entered into on March 4 2003, which are numbered Contract Nos. 03 XX 10 1369 and
03XXlO1370, as may have been amended and supplemented.
(e)Active capacity" shall mean the amount of storage space available for
irrigation, flood control , and other authorized purposes between reservoir elevations 2905 Mean
Sea Level (MSL) and 3060 MSL, of which the storage space available between reservoir
elevations 3055 MSL and 3060 MSL is used for exclusive flood control purposes, as indicated in
Water Right License No. 63-03618.
(f)Contract" shall mean and include Articles 1 through 27 hereof.
(g)
Contracting Officer" shall mean the Commissioner of the Bureau of
Reclamation or his duly authorized representative.
(h)Contractor" shall mean United Water Idaho Inc.
(i)Federal Reclamation laws" shall mean the Act of June 17 , 1902
(32 Stat. 388) and all acts amendatory thereof and supplementary thereto.
October 31.
(k)
(1)
Irrigation season" shall mean the period within any year, April 1 through
Project" or "Reservoir" shall mean Lucky Peak Dam and Reservoir.
State Engineer" shall mean the Director of the Department of Water
Resources as identified in Idaho Code, Title 42, Chapter 18.
(m)Watermaster" shall mean the person appointed by the official of the
Department of Water Resources to administer the delivery of water from the Boise River within
Water District 63 in accordance with Idaho Code, Title 42, Chapter 6.
(n)
December 31.
Year" shall mean the period of January 1 through the following
TERM OF CONTRACT AND TERMINATION OF THE JULY 1966 CONTRACT,SEPTEMBER 1968 CONTRACT, ASSIGNED PORTION OF THE MARCH 1968
CONTRACT, AND 2003 CONTRACTS
This Contract shall remain in effect as long as the Contractor pays the full annual
charges and any and all other amounts owing under this Contract: Provided, That it may be
terminated at any time by mutual consent of the parties hereto. The July 1966 contract, September
1968 contract, assigned portion of the March 1968 contract, and 2003 contracts are replaced by
this Contract and are no longer of any force and effect.
WATER TO BE AVAILABLE TO THE CONTRACTOR
The Contracting Officer will make available to the Contractor stored water
accruing to thirty-nine thousand five hundred forty hundred thousandths of one percent (.39540%)
of the active capacity of the Reservoir within the limits and upon the terms provided in this
Contract. This percent shall, so long as the Reservoir has an active capacity of 278 200 acre-feet
be treated as the equivalent of 1 100 acre-feet of active capacity. The latter figure of active
capacity may be adjusted from time to time by the Contracting Officer whenever there are
determinations as a result of standard procedures that the active capacity is other than as stated
above.
PLACE OF DELIVERY AND MEASUREMENT AND OF USE OF WATER
10.(a)Water for the purposes hereof shall be made available at the outlet works of
the Project and shall be delivered to the Contractor and measured at that point, except as
hereinafter provided. The Contractor shall receive said water at the delivery point and shall be
wholly responsible for taking said water at that point and diverting, conveying, and utilizing it.
The water to be delivered hereunder is to be diverted at:
Marden or Columbia water treatment plant intakes
by means of a device satisfactory to the State officer in charge of the distribution of water from the
Boise River. Such device shall be furnished, installed, and maintained by and at the expense of
the Contractor, but it shall be and remain at all times under the control of the State-appointed
Watermaster who may at all times have access to it over any lands of the Contractor. The
Contractor shall bear its proportionate share of all losses incurred in running the stored water from
the place of measurement and delivery to the place of diversion, and losses of water from seepage
evaporation, or other causes , below said point of measurement, shall be borne by the Contractor.
(b)Water made available to the Contractor pursuant to this Contract shall be
used for the irrigation of lands described as follows:
The lands legally served by the Contractor as detennined through the Snake River
Basin Adjudication or as allowed under State and Reclamation law.
CONSTRUCTION CHARGE OBLIGATION
11.For the right to obtain stored water as herein provided, the Contractor shall pay to
the Contracting Officer the proportionate part of the construction cost of the Project properly
allocable to such right which is equal to a present value of $366.311 , and this amount is
established as the Contractor s construction charge obligation. Payments equal to a present value
of $1 0,220.collected under the July 1966 contract, September 1968 contract, and 2003
contracts are available for application towards the construction charge obligation, leaving a
remaining obligation of $356,090.. The Contractor shall pay to the Contracting Officer the
remaining construction charge obligation in 40 successive annual installments of $16,674.each
the first of which shall be due December 31 2006, and each December 31 thereafter, until the
remaining construction charge obligation shall have been fully paid; Provided, A lesser payment
of the actual amount needed to retire the construction charge obligation will be allowed in the final
year; Provided further, That in the event of a reduction to the Contractor s percentage of active
capacity set forth in Article 9 of this Contract, the Contracting Officer will adjust the annual
installments accordingly; Provided further, That if Reclamation policy changes such that the
Contractor s water use is classified as agricultural irrigation under this Contract, then the
Contractor s construction charge obligation and mIDual installments shall be adjusted to an
obligation and installments for agricultural irrigation beginning on the first date of the irrigation
season next succeeding the policy change; Provided however, That installment monies paid
toward the construction charge obligation under this Contract will not be returned to the
Contractor in the event of a policy change.
OPERATION AND MAINTENANCE CHARGE
12.(a)In addition to the construction charge established in Article 11 , the
Contractor shall pay to the Contracting Officer, so long as this Contract remains in effect and in
advance on or before April 1 of each year, beginning with April 1 , 2006, the Contractor s share
based upon its percentage of active capacity, of the estimated cost of operation and maintenance of
the Project as determined by the Contracting Officer for the upcoming year. Written notice of the
Contractor s share of the estimated costs of operation and maintenance of the Project shall be
delivered by the Contracting Officer to the Contractor no later than February 1 of each year.
(b)Whenever, in the opinion of the Contracting Officer, funds so advanced will
be inadequate to operate and maintain the Project, he may give a written supplemental operation
and maintenance charge notice stating therein the amount of the Contractor s share, based upon its
percentage of active capacity, of additional funds required as determined by the Contracting
Officer, and the Contractor shall advance that additional amount on or before the date specified in
the supplemental notice. Provided, however, except for an emergency situation as defined in the
Standard Operating Procedures for the Project, the payment date specified in the supplemental
notice shall be at least 90 days from the date of delivery of the notice to the Contractor. If funds
advanced by the Contractor under this article exceed the Contractor s share of the actual cost of
the operation and maintenance of the Project for the year for which advanced, the surplus shall be
credited on the operation and maintenance charges to become due for succeeding years. Upon
written request from the Contractor, the Contracting Officer shall provide a written accounting
each year to the Contractor of the costs to be paid by the Contractor pursuant to subarticles (a) and
(b) of this article.
(c)Additionally, the Contracting Officer shall inform the Contractor of the
estimate of the costs to be paid by the Contractor in accordance with this A11icle as far in advance
as practicable for the Contractor s use in its budgeting process.
ELEMENTS OF OPERATION AND MAINTENANCE CHARGE
13.The Contractor shall pay to the Contracting Officer its share
of all costs incurred in
operating and maintaining the Project for the purpose of storing and releasing water under the
terms of this contract including, without limitation by reason of this enumeration, the costs of
surveys and investigations , labor, property, material and equipment, engineering, legal work
superintendence, administration, indirect costs, general expenses , inspections , special services.
The Contractor shall not be responsible for the costs of operating and maintaining the Project for
purposes other than storing and releasing water as provided
in the contract.
CHARGES FOR DELINQUENT PAYMENTS
14. (a) The Contractor shall be subject to interest, administrative, and penaltycharges on delinquent payments. If a payment is not received by the due date, the Contractor shallpay an interest charge on the delinquent payment for each day the payment is delinquent beyond
the due date. If a payment becomes 60-days delinquent, in addition to the interest charge, theContractor shall pay an administrative charge to cover additional costs of billing and processing
the delinquent payment. If a payment is delinquent 90-days or more, in addition to the interest andadministrative charges, the Contractor shall pay a penalty charge for each day the payment is
delinquent beyond the due date, based on the remaining balance of the payment due at the rate of
6 percent per year. The Contractor shall also pay any fees incurred for debt collection services
associated with a delinquent payment.
(b) The interest charge rate shall be the greater of either the rate prescribed
quarterly in the Federal Register by the Department of the Treasury for application to overdue
payments or the interest rate of 0.5 percent per month. The interest charge rate will be determined
as of the due date and remain fixed for the duration of the delinquent period.
(c) When a partial payment on a delinquent account is received, the amountreceived shall be applied first to the penalty charges , second to the administrative charges, third tothe accrued interest, and finally to the overdue payment.
(d)For any outstanding amounts owed, the Contracting Officer will furnish to
the Contractor notices of such delinquency at 30-60-, and 90-days past the initial due date, with
an official notification letter at 180-days past due indicating the debt will be referred to the
Secretary of the Treasury for collection in accordance with the Debt Collection Improvement
Act of 1996.
MEDIUM FOR TRANSMITTING PAYMENTS
15.(a)All payments from the Contractor to the Contracting Officer under this
Contract shall be by the medium requested by the Contracting Officer on or before the date
payment is due. The required method of payment may include checks, wire transfers, or other
types of payment specified by the Contracting Officer.
(b)Upon execution of the Contract, the Contractor shall furnish the Contracting
Officer with the Contractor s taxpayer s identification number (TIN). The purpose for requiring
the Contractor s TIN is for collecting and reporting any delinquent amounts owing under this
Contract.
RIGHTS TO BENEFICIAL USE OF WATER
16.The beneficial use of the water under this contract shall be governed by the Federal
Reclamation laws and the laws of the State of Idaho, as they may at any time apply to this Contract.
WATER SUPPLY AND OPERATION OF THE RESERVOIR
17.(a)As of the date of this Contract, the United States holds License
No. 63-03618, issued on September 27 2002, by the State of Idaho to the United States for the
storage of 307 000 acre-feet per annum of the waters of Boise River in Lucky Peak Reservoir.
The primary purpose of the Reservoir is for flood control, for which it will be operated, in
accordance with the Memorandum of Agreement between the Department of the Army and the
Department of the Interior, dated November 20 1953 , and as it may be amended, the Act of
August 24, 1954 (ch. 909 68 Stat. 794), the 1954 Supplemental Arrowrock and Anderson Ranch
Reservoir contracts approving the Boise River operating plan, and the Water Control Manual for
Boise River Reservoirs , dated April 1985 , copies of which are available for inspection at the office
of the Contracting Officer. Subject to operations for flood control, the United States will operate
the Project so as to store under existing storage rights all available water, and during each
irrigation season, the Contracting Officer will make available to the Contractor for miscellaneous
irrigation purposes the Contractor s proportionate share of the stored water that accrues in each
year to the active capacity of the Reservoir, together with any stored water that may have been
carried over in the Contractor s share of such active capacity from prior water years.
(b)The Contractor may hold over in Lucky Peak Reservoir water
from prior water years, subject to these limitations:
(1)Water may be held only to the extent that the total
amount of Lucky Peak stored water held to the credit of the
Contractor for any irrigation season shall not exceed the amount
which can be stored in the Contractor s proportionate part of the total
active capacity of that Reservoir.
(2)Whatever water is held for the credit of the Contractor
in Lucky Peak Reservoir as holdover water shall no longer be
accounted for as holdover water as of any date of water being released
or passed in excess of the volume required to fill the Reservoir.
(3)The United States may discharge such water as
required for flood control purposes in accordance with sub article (a)
of this article, or under subarticle (h) of this article, and such
discharged water shall be deducted from any holdover water held to
the credit of the Contractor.
(c)All space in Lucky Peak Reservoir shall be operated with like priority as to
storage rights and all space will be treated proportionately; and the Contracting Officer reserves
the privilege of granting to others holdover rights and of itself exercising such holdover rights as
to any unsold space that are not inconsistent with the rights granted to the Contractor under this
Contract. While the Contractor s storage water rights are defined in terms of active capacity in
Lucky Peak Reservoir, the Contracting Officer shall have the right, without change in the
Contractor s obligations with respect to storage rights , to store water accrued to those rights in any
storage capacity available to it or to supply a like amount of water from other sources, by
exchange or otherwise, so long as delivery for the Contractor of all stored water to which it is
entitled under this Contract is not in anywise impaired. In determining the amount of stored water
available, losses incidental to storage will be prorated equally over all water in storage in a given
reservoir; and, in determining the amount of stored water delivered, the point of measurement
shall be the outlet works from which the delivery is made.
(d)While the Lucky Peak Reservoir is being operated and maintained by the
United States, it will operate the Reservoir to the end of delivering all the water to which the
Contractor is entitled under this Contract within the capacity limits of the Reservoir and having
regard for other existing rights which must be supplied therefrom. Deliveries of stored water shall
be limited at any time to the amount which can be delivered by means of the Contractor
proportionate share of the outlet capacity, taking into account the requirement of passing through
the Reservoir water belonging to prior rights and the physical limitation of the existing outlet
works. The Contractor shall conform its diversions to the control of the stream as established by
the Watermaster.
(e)The Contractor hereby releases the United States and agrees to hold the
United States free and harmless from all damage claims that might result from the diversion into
storage, storage, regulation and release of water by the United States for the account of the
Contractor, in accordance with the Contractor s instructions.
(f)The United States shall not be liable or responsible for the carriage
distribution, or diversion of water for irrigation purposes after its release from the delivery point
or for any loss or damage of any type or description arising therefrom.
(g)
The United States shall not be liable for any obligation or liability arising
out of the operation of the Project for authorized flood control purposes in accordance with
subarticle (a) of this article. The United States shall not be responsible for loss of water to which
the Contractor, or those claiming by, through or under the Contractor, is entitled and which has
been stored in the Reservoir of the Project and which has been released as a result of the operation
of the Project for authorized flood control purposes in accordance with subarticle (a) of this article.
(h)The United States temporarily may reduce water storage, as may be
necessary, for the purpose of investigation, inspection, maintenance, repair, or replacement of any
of the facilities of the Project. So far as it is feasible, however, the Contracting Officer will give
the Contractor reasonable notice in advance of such temporary reduction except in cases of
emergency when notice need not be given.
(i)The distribution of the water from the Project is the responsibility of the
Watermaster or other designated official of the State. The costs of distribution by the Watermaster
shall be the responsibility of the Contractor pursuant to State law.
NO LIABILITY FOR WATER SHORTAGES OR INTERRUPTIONS
18.If there is a shortage in the quantity of water available through the project irrigation
works or interruptions in water deliveries to lands in the Contractor s service area resulting from
drought, failure of the power supply, inaccuracy in distribution, hostile diversion, prior or superior
claims, accident to or failure of facilities of the project irrigation works, whether or not attributable
to negligence of officers , agents, or employees of the United States, or other causes beyond the
control of the Contracting Officer, then, except as provided in Article 24 of this Contract, no
liability shall accrue against the United States or any of its officers, agents, or employees for
damage, direct or indirect, arising therefrom.
REMEDIES FOR DEF AUL TS BY THE CONTRACTOR
19.(a)The Contracting Officer reserves the right to refuse to deliver water to the
Contractor pursuant to this Contract in the event that the Contractor is in default of any of its
obligations under Articles 1 through 18 and 20 through 25 of this Contract and fails , after ninety
(90) days written notice from the Contracting Officer, to remedy the said default. In this event, the
Contracting Officer may also exercise against the Contractor any and all of his other rights and
remedies for breach of contract by the Contractor.
(b)The payment of charges becoming due pursuant to this Contract is a
condition precedent to receiving benefits under this Contract. The Contracting Officer shall not
make water available to the Contractor through Project facilities during any period in which the
Contractor is in arrears in the advance payment of any operation and maintenance charges due the
United States or in arrears for more than 12 months in the payment of any construction charges
due the United States. The Contractor shall not deliver water under the terms and conditions of
this contract for lands or parties that are in arrears in the advance payment of operation and
maintenance charges or in arrears more than 12 months in the payment of construction charges as
levied or established by the Contractor.
WAIVER OF DEFAULT
20.The waiver by either party to this Contract as to any default shall not be construed
as a waiver of any other default or as authority of the other party to continue such default or to
make, do, or perform, or 110t to make, do, or perform, as the case may be, any act or thing which
would constitute a default.
TITLE TO PROJECT WORKS
21.Title to all of the Project and associated works shall be and remain inthe United
States until otherwise provided for by the Congress.
GENERAL OBLIGATION--LEVIES THEREFOR
22.(a)The obligation of the Contractor to pay the Contracting Officer as provided
in this Contract is a general obligation of the Contractor notwithstanding the manner in which the
obligation may be distributed among the Contractor s water users and notwithstanding the default
of individual water users in their obligation to the Contractor.
(b)The Contractor will cause to be levied and collected all necessary
assessments, tolls , and other charges and will use all of the authority and resources of the
Contractor to meet its obligations hereunder to make in full all payments to be made pursuant to
this Contract on or before the date such payments become due and to meet its other obligations
under this Contract.
COVENANT AGAINST CONTINGENT FEES
23.The Contractor waITants that no person or selling agency has been employed or
retained to solicit or secure this Contract upon an agreement or understanding for a commission
percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established
commercial or selling agencies maintained by the Contractor for the purpose of securing business.
For breach or violation of this waITanty the Contracting Officer shall have the right to annul this
Contract without liability or in its discretion to require the Contractor to pay to the Contracting
Officer the full amount of such commission, percentage, brokerage, or contingent fee.
OPINIONS AND DETERMINATIONS
24.(a)Where the terms of this Contract provide for actions to be based upon the
opinion or determination of either party to this Contract, said terms shall not be construed as
pelmitting such action to be predicated upon arbitrary, capricious, or umeasonable opinions or
determinations. Both parties , notwithstanding any other provisions of this Contract, expressly
reserve the right to seek relief from and appropriate adjustment for any such arbitrary, capricious
or umeasonable opinion or determination. Each opinion or determination by either party shall be
provided in a timely manner. Nothing in this subarticle is intended to or shall affect or alter the
standard of judicial review applicable under Federal law to any opinion or determination
implementing a specific provision of Federal law embodied in statute or regulation.
(b)The Contracting Officer shall have the right to make determinations
necessary to administer this Contract that are consistent with the provisions of this Contract, the
laws of the United States and of the State of Idaho, and the rules and regulations promulgated by
the Secretary of the Interior. Such determinations shall be made in consultation with the
Contractor to the extent reasonably practicable.
COMPLIANCE WITH LAWS. RULES AND REGULATIONS
25.(a)The parties agree that water storage, delivery or use pursuant to this
Contract is subject to the laws of the State of Idaho, Federal law, and Federal Reclamation law, as
amended and supplemented, and the rules and regulations promulgated by the Secretary of the
Interior under Federal Reclamation law, subject to any limitations resulting from the nature of the
Project as a U.S. Army Corps of Engineers facility.
(b)By entering into this Contract, the Contractor does not waive its rights to
contest the validity or application of any Federal law or regulation in connection with the
performance of the terms and conditions of this Contract; Provided, That the Contractor agrees to
comply with the terms and conditions of this Contract unless and until relief from application of
such Federal law or regulation to the implementing provision of the Contract is granted by a court
of competent jurisdiction.
NOTICES
26. Any notice, demand, or request required or authorized by this Contract shall be
deemed properly given, except where otherwise herein specifically provided, if mailed, postageprepaid, to the Regional Director, PN Region, Bureau of Reclamation, 1150 N. Curtis Road, Suite100, Boise, Idaho 83706-1234, on behalf of the United States, and to United Water Idaho Inc.O. Box 190420, Boise, Idaho 83719-0420, on behalf of the Contractor. The designation of the
person to be notified or the address of such person may be changed at any time by similar notice.
GENERAL PROVISIONS
27.The General Provisions applicable to this Contract are listed below. The full text of
these articles is attached as Exhibit A and is hereby made a part of this Contract.
a. CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS
b. OFFICIALS NOT TO BENEFIT
c. ASSIGNMENT LIMITED - SUCCESSORS AND ASSIGNS OBLIGATED
d. BOOKS, RECORDS , AND REPORTS
e. PROTECTION OF WATER AND AIR QUALITY
f. EQUAL EMPLOYMENT OPPORTUNITY
g.
COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS
h. CONFIRMA nON OF CONTRACT
i. CHANGES IN CONTRACTOR'S ORGANIZATION
J. CONTRACT DRAFTING CONSIDERA nONS
IN WITNESS WHEREOF, the parties hereto have signed their names the day and
year first above written.
UNITED WATER IDAHO INc.:
ATTEST:
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THE UNITED STATES OF AMERICA:
By
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Bureau of Reclamation
1150 N. Curtis Road, Suite 100
Boise, ill 83706-1234
STATEOFIDAHO )
County of
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On this -' 6 ay of /U)t//t~2005 , personally appeared before me
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the V ice President
.:ml! f ~ t-=':)l of tile UNITED WATER IDAHO INC., and the perso~ who executed the withininstrument and acknowledged to me that the UNITED WATER IDAHO INc. executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal as of the day and year first above written.
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STATE OF IDAHO
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County of Ada
On this day of &.11 Gt-oJrV 200$, personally appeared before me
k.d..1' / .E. LO/'r ku'I", to m~ known to be the official of the United States of
America that executed the within and foregoing instrument and acknowledged said instrument to
be the free and voluntary act and deed of said United States, for the uses and purposes thereinmentioned, and on oath stated that he was authorized to execute said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal as of the day and year first above written.
(SEAL)
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EXHIBIT A
GENERAL PROVISIONS - BOISE AND LUCKY PEAK PROJECTS
The Contractor, as referred to in the following Standard Contract Articles, shall be the United Water Idaho Inc.
CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS
(a) The expenditure or advance of any money or the performance of any obligation of the United Statesunder 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.
OFFICIALS NOT TO BENEFIT
(b) No Member of or Delegate to the Congress, Resident Commissioner, or Official of the Contractor shallbenefit from this contract other than as a water user or landowner in the same manner as other water users or landowners.
ASSIGNMENT LIMITED - SUCCESSORS AND ASSIGNS OBLIGATED
(c) The provisions of this contract shall apply to and bind the successors and assigns of the parties hereto butno assignment or transfer of this contract or any right or interest therein by either party shall be valid until approved in
writing by the other party.
BOOKS. RECORDS. AND REPORTS
(d) The Contractor shall establish and maintain accounts and other books and records pertaining to the
administration of the terms and conditions of this contract, including the Contractor s financial transactions; water supplydata; the water users' land-use (e,g. crop census), and water-use data; and other matters that the Contracting Officer may
require, Reports 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 rightduring office hours to examine and make copies of the other party s books and records relating to matters covered by thiscontract.
PROTECTION OF WATER AND AIR OUALITY
(e) (1) Project facilities used to make available and deliver water to the Contractor shall be operated
and maintained in the most practical manner to maintain the quality of the water at the highest level possible as determined
by the Contracting Officer: Provided.That the United States does not warrant the quality of the water delivered to the
Contractor and is under no obligation to furnish or construct water treatment facilities to maintain or improve the quality of
water delivered to the Contractor.
(2) The Contractor shall comply with all applicable water and air pollution laws and regulations of
the United States and the State of Idaho; and shall obtain all required pennits or licenses from the appropriate Federal, Stateor local authorities necessary for the delivery of water by the Contractor; and shall be responsible for compliance with all
Federal, State, and local water quality standards applicable to surface and subsurface drainage and/or discharges generated
through the use of Federal or Contractor facilities or project water provided by the Contractor within the Contractor
Project Water Service Area.
(3)
other discharge services.
This article shall not affect or alter any legal obligations of the Secretary to provide drainage or
EOUAL EMPLOYMENT OPPORTUNITY
(f)During the performance of this contract, the Contractor agrees as follows:
(1) The Contractor will not discriminate against any employee or applicant for employment because
of race, color, religion, sex, disability, or national origin, The Contractor will take affinnative action to ensure that
applicants are employed, and that employees are treated during employment, without regard to their race, color, religionsex, disability, 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 tennination; rates of payor other fonns ofcompensation; 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 theprovisions of this nondiscrimination clause.
(2) The Contractor will, in all solicitations or advertisements for employees placed by or on behalfof the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, colorreligion, sex, disability, or national origin.
(3) The Contractor will 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 Officeradvising the labor union or workers' representative of the Contractor s commitments under Section 202 of ExecutiveOrder 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and
applicants for employment.
(4) The Contractor will comply with all provisions of Executive Order No. 11246 of September 24
1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
(5) The Contractor will furnish all infonnation and reports required by Executive Order 11246 of
September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permitaccess to his books, records, and accounts by the Contracting Agency and the Secretary of Labor for purposes of
investigation to ascertain compliance with such rules, regulations, and orders,
(6) In the event of the Contractor s noncompliance with the nondiscrimination clauses of thiscontract or with any of such rules, regulations, or orders, this contract may be canceled, tenninated or suspended in whole orin part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures
authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies
invoked as provided in Executive Order 11246 of September 24, 1965 or by rule, regulation, or order of the Secretary ofLabor, or as otherwise provided by law.
(7) The Contractor will include the provisions of paragraphs (1) through (7) in every subcontract or
purchase order unless exempted by the rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or
vendor. The Contractor will 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.howeverthat in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as aresult of such direction, the Contractor may request the United States to enter into such litigation to protect the interests of
the United States.
COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS
(g)
(1) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 (42 U.C. 2000d),Section 504 of the Rehabilitation Act of 1973 (p.L. 93-112, as amended), the Age Discrimination Act of 1975 (42 U.
6101 et seq ), Title II of the Americans with Disabilities Act of 1990 if the entity is a State or local government entity
(Title III if the entity is a non-government entity), and any other applicable civil rights laws, as well as with their respectiveimplementing regulations and guidelines imposed by the U.S. Department of the Interior and/or Bureau of Reclamation.
(2) These statutes require that no person in the United States shall be excluded from participation
, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity receiving financial
assistance from the Bureau of Reclamation on the grounds of race, color, national origin, disability, or age. By executing
this contract, the Contractor agrees to immediately take any measures necessary to implement this obligation, including
permitting officials of the United States to inspect premises, programs, and documents,
(3) 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, including installment payments after such date on account of
A - 2
anangements for Federal financial assistance which were approved before such date. The Contractor recognizes and agrees
that such Federal assistance 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.
(4) Complaints of discrimination against the Contractor shall be investigated by the Contracting
Officer s Office of Civil Rights.
CONFIRMATION OF CONTRACT
(h)The Contractor shall furnish to the Contracting Officer evidence that pursuant to the laws of the State of
Idaho, the Contractor is a legally constituted entity and the contract is lawful, valid, and binding on the Contractor. This
contract shall not be binding on the United States until such evidence has been provided to the Contracting Officer
satisfaction. The Contracting Officer shall provide the Contractor written notice of the Contracting Officer s acceptance of
such evidence. The Contracting Officer represents that he is authorized to execute this contract and perlonn all obligations
of the Contracting Officer hereunder.
CHANGES IN CONTRACTOR'S ORGANIZATION(i) While this contract is in effect, no change may be made in the Contractor s organization, by inclusion orexclusion of lands or by any other changes which may affect the respective rights, obligations, privileges, and duties ofeither the United States or the Contractor under this contract including, but not limited to, dissolution, consolidation, ormerger, except upon the Contracting Officer=s written consent.
CONTRACT DRAFTING CONSIDERATIONS
U) Articles 1 through 27 of this Contract have been drafted, negotiated, and reviewed by the parties heretoeach of whom is sophisticated in the matters to which this Contract pertains, and no one party shall be considered to havedrafted the stated articles.
A - 3
BOISE RIVER WATER LEASE AND RENTAL AGREEMENT
This Boise River Water Lease and Rental Agreement ("Agreement") is entered into
effective the date last signed below by and between United Water Idaho Inc., an Idaho
Corporation ("United Water ), and the South Boise Water Company an Idaho corporation
South Boise Water ). United Water and South Boise Water together are refelTed to
collectively as the "Parties.
Recitals
1. South Boise Water is the holder of water right 63-148c, which authorizes diversion of a
maximum of9.13 cubic feet per second ("cfs ) of water from the Boise River into Loggers
Creek and Ridenbaugh-Rossi Mill Ditch for distribution to its shareholders for irrigation.2. United Water supplies municipal and irrigation water to customers in the Treasure Valley
and has diversion facilities on the Boise River through which it is able to place to beneficial use
any waters it might divert from the river.3. The Parties desire to enter into an agreement under which United Water will be entitled
to divert up to a maximum of 4.00 cfs from the Boise River under water right 63-148c through
rentals from the Idaho State Water Bank ("Water Bank") operated by the Idaho Water Resource
Board ("Board"
Terms of A2reement
Now, therefore, for valuable consideration, including the mutual conditions and
covenants contained herein, the receipt of which is hereby acknowledged, the Parties hereto
agree as follows:
l.r 1"4A
4. Lease of up to 4.0 cfs through the Water Bank.On or before January ~ 2005, South
Boise Water shall submit plications to Sell or Lease a Water Right to the Water Bank (the
Applications ) to the Board~ promptly notify United Water that the Applications have been
submitted. Each Application the Board accepts is defined herein as a "Lease(s)." The portion of
water right 63-148c included in the Leases is defined herein as the Leased Water Right. The
initial term for each Lease shall be as follows:
Lease #Term of Lease Quantity Lease Expires
4 years 1.0 cfs Dec 31 , 2008
3 years 1.0 cfs Dec 31 , 2007
2 years 1.0 cfs Dec 31 , 2006
1 year 1.0 cfs Dec 31 , 2005
As described in paragraph 7, the Parties may mutually agree to renew or extend the term
of any Lease.
5. United Water s rental of the Leased Water Right.Within fifteen days after receiving
notice that South Boise Water has submitted the Applications to the Board, United Water shall
submit an Application to Rent Water from the Water StlpP1J~ank to the Board to rent the
Leased Water Right from the Water Bank. The Parties unde~tand that the Leased Water Right
rented by United Water is subj ect to regulation by the Boise River Watermaster and that any
reduction by the Boise River Watermaster in the diversion rate available under water right 63-
148c also will apply to the Leased Water Right. The Parties also understand that if any
Application is not approved, the corresponding water will not be available for rental by United
Water.
6. Annual payments for rental of the Leased Water Right.United Water shall make annual
payments to the Board for the amount of the Leased Water Right United Water rents in the given
year, it being understood that the Board will forward such payments to South Boise Water, less
the established Water Bank administrative fee. The Parties agree thaf'tental price paid by United
Water to the Board will be t ~r!aa foot rental rate for renf~from the Water Bank
calculated based on an annual divertf volume of 361.30 acre-feet ("AF") for each 1.00 cfs of
water right 63-148c rented. For example, in the firs~ year of this Agreement, where United
Water will rent 4.00 cfs of water right 63-l48c, and~er8 the CYIT€H1+mtal rate is $11.00 per
, ynited W~ter w.ill pay $15 897.20 ($11.00 x 361.30 AF x 4.00 cfs) to the Boa!d.
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In addition to making such paymen(s to the Board, United Water shall make payments
directly to South Boise Water on or before May 15 of each such year in the amount of 50% of '
the then-established rate for rentals from the Water Bank for the amount of the Leased Water
Right the Board has agreed to rent to United Water for the year. The Parties agree that the rental
price paid by United Water to South Boise Water will be calculated based on an annual diversion
volume of361.30 acre-feet ("AF") for each 1.00 cfs of water right 63-148c rented. For example
if the established rate for renting a natural flow water right from the Water Bank in 2005 is
$11.00 per AF, in addition to the $11.00 per AF rental fee paid to the Board, United Water also
will pay an additional $5.50 per AF directly to South Boise Water. Accordingly, using the year
2005 as an example, where United Water will rent 4.00 cfs from the Water Bank, United Water
will pay directly to South Boise Water an additional $7 948.60 ($5.50 x 361.30 AF x 4.00 cfs)
beyond the $15 897.20 amount owed to the Board.
7. Term of Agreement and renewal of Leases.On or before December 20 of each year
during the term ofthis Agreement, the Parties shall meet to determine whether any lease expiring
that year will be renewed for the following year. For example, Lease # 1 under paragraph 4 will
expire on December 31 2005. Accordingly, on or before December 20, 2005 , the Parties will
meet to determine whether South Boise Water will renew Lease # 1 for 2006. This Agreement
will terminate when all of the Leases have expired and either party has determined not to renew
any of them.
8. Adjustment to the Leases.The Parties agree that the terms ofthe Leases may be adjusted
in the event South Boise Water involuntarily loses its entitlement to a portion of the 13.60 cfs
that South Boise Water currently is authorized to divert under water rights 63-l48b, 63-l48c, 63-
148d, 63-150, 63-185a, 63-185b and 63-2392. In the event South Boise Water involuntarily
loses a portion of anyone of these water rights, the Parties agree to negotiate in good faith and
cooperate in adjusting the term and/or water volumes of then outstanding Leases, and the
payment obligations under the Leases, if necessary to meet the water needs of South Boise
Water s shareholders. The Parties also agree that the terms of the Leases may be adjusted in the
event auy g8'lOmH1Cflta~ entity Jdt:Jl ~ual volume yield available to ynited Water for
each 1.00 cfs of water nght 63-148c Is ess an 330 AF. In that event, the PartIes agree to
negotiate in good faith and cooperate in ~sting the payment obligations under the Leases in
proportion to the amount ofthe reduction in annual yield.
9. Right to terminate. If any governmental entity places any costs, fees, charges, or
assessments of any kind upon either Party directly, or indirectly through the other party,
regarding the use or delivery of any of water right 63-148c other than those fees specified in
paragraph 6 of this Agreement (other than normal increases in Water Bank charges that may be
imposed on all renters from time to time), the Party subject to such costs at its sole option
and discretion, may terminate this Agreement upon written notice to the o&er Party. This
Agreement shall terminate thirty days after the receipt of such notice, provided United Water still
shall remain liable to South Boise Water for all payments required under this Agreement for
water used during such year prior to the date termination is effective.
10. Additional documentation: cooperation during term. The Parties acknowledge that
implementing this Agreement may require submission of additional documentation to each other
or to government agencies. South Boise Water and United Water shall cooperate in efforts to
implement this Agreement, and also shall cooperate with regard to producing any such additional
documentation.
11. Notices. Any notice provided for or concerning this Agreement shall be in writing, and
may be delivered by hand delivery or fax, but in any event shall be confirmed by sending such
notice by registered or certified mail, first class postage prepaid, return receipt requested
addressed to the respective address of United Water or South Boise Water as set forth below:
South Boise Water Company:United Water:
Barry Eschen, President
South Boise Water Company
O. Box 6005
Boise, Idaho 83707
Gregory P. Wyatt
Vice President
United Water Idaho Inc.
8248 West Victory Road
P. O. Box 190420
Boise, Idaho 83719-0420
12. Confidentiality. The Parties agree, that unless agreed otherwise in writing, the terms and
content of this Agreement shall remain confidential between the Parties. The parties may
disclose the contents ofthis Agreement if required to do so by law.
13. Binding effect.This Agreement shall bind the Parties hereto, their employees, agents
heirs, successors, and assigns.
14. Severability. If any of the provisions ofthis Agreement are deemed invalid by any court
or agency, the remaining provisions shall remain in effect.
15. No Waiver.A Party s election not to enforce any right under this Agreement shall not
constitute a waiver of the Party s entitlement to enforce such right in the future.
16. Authority. The Parties each represent and warrant that they have authority to enter into
this Agreement.
17. Interpretation. The Parties hereto acknowledge that this Agreement has been prepared
after extensive discussions between the Parties and the opportunity for each Party to review the
Agreement with and obtain advice from their respective legal counsel. In construing this
Agreement, the fact that one Party or the other may have drafted its various provisions shall not
affect the interpretation of such provisions.
18. Relationship of Parties. Nothing set forth herein shall be deemed to create the
relationship of partners, principal and agent, master and servant, employer and employee, or joint
venturers between the Parties hereto. None of the Parties shall have the authority to bind another
Party. Nothing contained in this Agreement shall create a contractual relationship with, or a
cause of action in favor of, a third party against a Party or the Parties to this Agreement.
19. Separate counterparts. This Agreement may be executed in one or more counterparts
each of which, when so executed, shall be deemed to be an original. Such counterparts shall
together constitute and be one and the same instrument.
20. Attorney fees. In any action or proceeding brought by any Party hereto against the other
in any way arising out of this Agreement, the prevailing Party shall be entitled to its reasonable
costs and expenses of such action, including reasonable attorneys' fees, from the other Party.
21. Entire Agreement.This Agreement constitutes the entire understanding and agreement
between the Parties. There are no side agreements, understandings or promises.
The Parties hereby enter this Agreement as of the dates specified below.
UNITED WATER IDAHO INC.
..JA/W~ e;JCO.5
Date Signed
SOUTH BOISE WATER COMPA1\TY, INe.
Barry Esc en, P;~sident
2..-~ 1-00
ate Signed
Page 1 of 3
STATE OF IDAHO
DEPARTMENT OF WATER RESOURCES
WATER SUPPLY BANK RENTAL AGREEMENT
This is to certify that:UNITED WATER
PO BOX 190420
BOISE ID 83719-0420
filed an application to rent water from the Water Supply Bank ("bank"), The Idaho Water Resource
Board ("Board") being authorized to operate a bank and to contract by and through the Director of the Idaho
Department of Water Resources ("Director, department") for rental of water from the bank agrees to rent
water as follows:
Summarv of Water RiQhts or Portions Rented from the Bank
Riaht
63-148C
Rented
Rate
0cfs
Rented
Volume
360,0 af
Total Rented
Acres
50.0 ac
COMBINED
RENTAL TOTALS:0 cfs 360.0 af 50.0 ac
TERM OF RENTAL:03/01/06 to 11/15/06 and 03/01/07 to 11/15/07 and
03/01/08 to 11/15/08
TOTAL RENTAL FEE:$3.960.00 per year
The fee for rental of the above-described water is $ 3 960.00 per year. Payment for the 2006 irrigation
season should be submitted with the signed rental agreement. In subsequent years, annual payments shall
be received by the Department of Water Resources prior to March 1 , the start of the irrigation season , each
year for the duration of the rental period. The agreement will be void if the payment is not received in a given
year.
Detailed water right specific limitations and conditions attached,
------------------------------------------------------------------------------------------------------------------------------------------
The undersigned renter agrees to use the water rented under this agreement in accordance with the Water
Supply Bank rules and in compliance with the limitations and conditions of use described in this agreement:
Dated this day of H14R..cf../
riJL
u,.-...,fEo At-~
(Signature)
by
~~.,,-
12 ff€A-z:,
(Print Name)
~~/4,..(t1-/f1..crC1 t:/\./0~
(Title if on behalf of company or organization)
-----------------------------------------------------------------------------------------------------------------------------------------
Having determined that this agreement satisfies the provisions of Section 42-1763, Idaho Code , and, IDAPA
37.02,03030 (Water Supply Bank Rule 30), for the rental and use of water under the terms and conditions
herein provided, and none other, I hereby execute this Rental Agreement on behalf of the Idaho Water
Resource Board this day of , 20
KARL J. DREHER, Director
Department of Water Resources
Page 2 of 3
WATER RIGHT NO(S). 63-148C
WATER SUPPLY BANK RENTAL AGREEMENT
The renter agrees to use the water rented under this agreement in accordance with the Water Supply Bank
rules and in compliance with the limitations and conditions of use described below:
Renter: UNITED WATER
PO BOX 190420
BOISE 10 83719-0420
Priority Date: 06/01/1865
Source: BOISE RIVER
BENEFICIAL USE
IRRIGATION
From
03/1 to 11/15
Diversion Rate
0 CFS
Total: 1,0 CFS
Volume
360,0 AF
360,0 AF
LOCATION OF RENTER'S POINT'S) OF DIVERSION:
BOISE RIVER Lot 6 NENE Sec. 4 Twp 02N Rge 03E ADA County
RENTER'S PLACE OF USE:Municipal
Within service area of United Water Idaho as provided under Idaho law. The place of use is generally
described as within the City Limits of Boise and the surrounding service area.
CONDITIONS OF WATER USE
1, Consumptive use of water under this agreement is limited to the consumptive irrigation requirement
recognized by the department of 3.5 acre-feet per acre per year.
2, Water right 63-148C is designated as number 16 in the Boise River water master s records and the
Stewart Decree. Rental of water under this right is subject to reductions under the Stewart Decree.
3. The rate of diversion when combined with all other water rights for the same land shall not exceed
02 cfs for each acre of land,
4, The use of water under this agreement shall be subject to the provisions of Section 42-1766, Idaho
Code.
5, Rental of the specified right from the bank does not, in itself, confirm the validity of the right or any
elements of the water right, or improve the status of the right including the notion of resumption of
use. It does not preclude the opportunity for review of the validity of this water right in the ongoing
Snake River Basin Adjudication or any other department application process,
6, The authorized diversion volume under this agreement is based on volume reported by the lessor
and may be subject to change based on historical diversion of water under the right.
7. In the event that continued water use is not authorized , the renter agrees to hold the Board , the
Director and the state of Idaho harmless from any claim for reimbursement or expenses associated
with rental of water, or the development of new and supplemental water uses,
Page 3 of
WATER RIGHT NO(S). 63-148C
WATER SUPPLY BANK RENTAL AGREEMENT
CONDITIONS OF WATER USE
8, Use of water under this agreement shall not prejudice any action of the Department in its
consideration of a permanent application for transfer filed by the applicant for this same use,
9, Use of water under this agreement does not constitute a dedication of the water to renter s place of
use and upon expiration of this agreement, the points of diversion and place of use of the water shall
revert to those authorized under the water right and/or again be available to rent from the bank,
10, Renter agrees to comply with all applicable state and federal laws while using water under this
agreement.
11. Renter agrees to hold the Board, the Director and the state of Idaho harmless from all liability on
account of negligent acts of the renter while using water.
12, Renter acknowledges and agrees that the Director may terminate diversion of water if the Director
determines there is not a sufficient water supply for the priority of the right or portion thereof being
rented,
13, This rental agreement does not grant any right-of-way or easement to use the diversion works or
conveyance works of another party.
14. Failure of the renter to comply with the conditions of this agreement is cause for the Director to
rescind rental agreement.
, ,
G~::fVEDState of Idaho MAR a 2006
DEPARTMENT OF WATER RESOUItJ~# WATER
322 East Front Street, P.O. Box 83720, Boise, ID 83720-0098
Phone: [phone] Fax: [phone] Web Site: www.idwr.idaho.gov.
March 7 , 2006 DIRK KEMPTHORNE
Governor
KARL J. DREHER
Director
UNITED WATER IDAHO INC
C/O SCOTT RHEAD
PO BOX 190420
BOISE 10 83719-0420
RE:APPLICA TION TO RENT WATER FROM THE WATER SUPPLY BANK.
"\lATER R!GHT NO(.S). 53-.148C
Dear Mr. Rhead:
The Department of Water Resources (department) acknowledges receipt of your
application to rent water from the Water Supply Bank. Please find enclosed a Water
Supply Bank Rental Agreement for your review and signature. Upon signature and
return of the agreement, together with the rental fee described below, the department
also will sign the agreement and will return an executed copy to you. Execution of the
agreement and compliance with the conditions of approval authorize diversion and use
of water as provided in the agreement.
Please note your application identified a water use of Irrigation and a point of
diversion in section 14 , Twp 3N , Rge 2E , B.M. In accordance with the rental agreement
approved in 2005 for the same use, these were changed to Municipal use with a point
of diversion in section 4, Twp 2N, Rge 3E , B.M. Additionally, the season of use
authorized under the rental agreement was changed to begin on March 1 in accordance
with the preliminary recommendation prepared for the Snake River Basin Adjudication.
This agreement provides for rental of water during the authorized irrigation
season from 2006 through 2008. it authorizes diversion of up to 360 acre-feet in
accordance with the conditions. A rental fee of $3,960.00 per year was calculated
based on the current rental rate of $11.00 per acre-foot times 360 acre-feet. Please
send a check made payable to the Idaho Department of Water Resources together with
the signed rental agreement.
Annual payments for rental of water during all subsequent irrigation seasons
shall be received by the Department prior to March 1 , the start of the authorized
irrigation season , each year for the duration of the rental period. The agreement will be
void if the payment is not received in a given year.
If you have questions , please feel free to contact me.
Ii d ;1
If
' \
Sincere1w //'i
i '/-....\11
;,
' I"0'
~' /, '
//j/1\1 IJ/i
, Jf".y,'1.4:.I~,~/.il' .JV'u- /v/
. ,, /,,/
Cy~t~ia!B~.nse ClarkI '
. ,
Wat~r AII9'9ation Bureau
Ene!: 1
John Westra - IDWR Western Regional Office
John Marshall- Givens Pursley, LLP
Lee Sisco - Boise River Watermaster
Page 1 of 3
STATE OF IDAHO
DEPARTMENT OF WATER RESOURCES
WATER SUPPLY BANK RENTAL AGREEMENT
This is to certify that:UNITED WATER
PO BOX 190420
BOISE 10 83719-0420
filed an application to rent water from the Water Supply Bank ("bank") The Idaho Water Resource
Board ("Board") being authorized to operate a bank and to contract by and through the Director of the Idaho
Department of Water Resources ("Director, department") for rental of water from the bank agrees to rent
water as follows:
Summary of Water RiQhts or Portions Rented from the Bank
RiQht
63-148C
Rented
Rate
10cfs
Rented
Volume
3600 af
Total Rented
Acres
50,0 acCOMBINED
RENTAL TOTALS:0 cfs 360.,0 at 50.0 ac
TERM OF RENTAL:03/01/06 to 11/15/06 and 03/01/07 to 11/15/07 and
03/01/08 to 11/15/08
TOTAL RENTAL FEE:$3.960.00 per vear
The fee for rental of the above-described water is $ 3 960 00 per year Payment for the 2006 irrigation
season should be submitted with the signed rental agreement In subsequent years. annual payments shallbe received by the Department of Water Resources prior to March 1 , the start of the irrigation season eachyear for the duration of the rental period The agreement will be void if the payment is not received in a givenyear
Detailed water right specific limitations and conditions attached.
-------------------------------------------------------------------------------------------------
The undersigned renter agrees to use the water rented under this agreement in accordance with the Water
Supply Bank rules and in compliance with the limitations and conditions of use described in this agreement:
Dated this day of
(Print Name)(Signature)
(Title if on behalf of company or organization)
-------------------------------------------------------------------------------------------------------------
Having determined that this agreement satisfies the provisions of Section 42-1763, Idaho Code, and, IDAPA
37.02 03030 (Water Supply Bank Rule 30), for the rental and use of water under the terms and conditions
herein provided, and none other, I hereby execute this Rental Agreement on behalf of the Idaho Water
Resource Board this day of , 20
KARL J DREHER, Director
Department of Water Resources
Page 2 of 3
WATER RIGHT NO(S). 63-148C
WATER SUPPLY BANK RENTAL AGREEMENT
The renter agrees to use the water rented under this agreement in accordance with the Water Supply Bank
rules and in compliance with the limitations and conditions of use described below:
Renter: UNITED WATER
PO BOX 190420
BOISE ID 83719-0420
Priority Date: 06/01/1865
Source: BOISE RIVER
BENEFICIAL USE
IRRIGATION
From
03/1 to 11/15
Diversion Rate
1 0 CFS
Total: 1 0 CFS
Volume
360..0 AF
360 0 AF
LOCATION OF RENTER'S POINT'S) OF DIVERSION:
BOISE RIVER Lot 6 NENE Sec. 4 Twp 02N Rge 03E ADA County
RENTER'S PLACE OF USE:Municipal
Within service area of United Water Idaho as provided under Idaho law The place of use is generally
described as within the City Limits of Boise and the surrounding service area
CONDITIONS OF WATER USE
Consumptive use of water under this agreement is limited to the consumptive irrigation requirement
recognized by the department of 3 5 acre-feet per acre per year.
Water right 63-148C is designated as number 16 in the Boise River water master s records and the
Stewart Decree. Rental of water under this right is subject to reductions under the Stewart Decree,
3. The rate of diversion when combined with all other water rights for the same land shall not exceed
0 02 cfs for each acre of land
The use of water under this agreement shall be subject to the provisions of Section 42-1766, Idaho
Code
Rental of the specified right from the bank does not, in itself, confirm the validity of the right or any
elements of the water right, or improve the status of the right including the notion of resumption of
use It does not preclude the opportunity for review of the validity of this water right in the ongoing
Snake River Basin Adjudication or any other department application process.
The authorized diversion volume under this agreement is based on volume reported by the lessor
and may be subject to change based on historical diversion of water under the right.
In the event that continued water use is not authorized , the renter agrees to hold the Board, the
Director and the state of Idaho harmless from any claim for reimbursement or expenses associated
with rental of water, or the development of new and supplemental water uses
~~-
Page 3 of 3
WATER RIGHT NO(S). 63.148C
WATER SUPPLY BANK RENTAL AGREEMENT
CONDITIONS OF WATER USE
8. Use of water under this agreement shall not prejudice any action of the Department in its
consideration of a permanent application for transfer filed by the applicant for this same use.
Use of water under this agreement does not constitute a dedication of the water to renter s place of
use and upon expiration of this agreement, the points of diversion and place of use of the water shall
revert to those authorized under the water right and/or again be available to rent from the bank
10. Renter agrees to comply with all applicable state and federal laws while using water under this
agreement
11. Renter agrees to hold the Board, the Director and the state of Idaho harmless from all liability on
account of negligent acts of the renter while using water.
12. Renter acknowledges and agrees that the Director may terminate diversion of water if the Director
determines there is not a sufficient water supply for the priority of the right or portion thereof being
rented.
13. This rental agreement does not grant any right-at-way or easement to use the diversion works or
conveyance works of another party
14 Failure of the renter to comply with the conditions of this agreement is cause for the Director to
rescind rental agreement.
Before the Idaho Water Resource Board
RECEIVED
MA Y 3 ~ '1f'('( U"
Department of Water Resource!
WATER SUPPLY BANK RENTAL AGREEMENT
The Idaho Water Resource Board ("Board") being authorized to operate a Water
Supply Bank ("bank") and to contract by and through the Director of the Idaho
Department of Water Resources ("Director ) for rental of waterfrom the bank agrees to
rent water as follows:
1, Renter:United Water Idaho Inc.J t1ICf~'/i).o 837/'f-Ol!.;!1:J )J. ,fA/.
PO Box +48&0 Boise 10 83707 14882, Address:
3. Source of water:Boise River
4.. Use of water:Municipal
5. The right from which water will be rented is 63-148C under four separate leases to the
bank,
6,. a) Renter s point of diversion:
Legal description:Lot 60 NWNE Section 4 . T2N. R3E, B.M.. Ada County
b) Renter s place of use:
Legal description: Within service area of United Water Idaho as provided under
Idaho law. The place of use is qenerally described as within
the City Limits of Boise and the surroundinq service area.
7. Quantity of water rented:
Irrigation Diversion Diversion MaxImum Diversion Irrigated Annual
Season Period Rate (efs)Volume (acre-feet)"Acres Rental Fee
2005 April 1 to Nay 15 4 efs 440 at 200 ae $15 84000
2006 April 1 to Nov. 15 3 efs 080 at 150 ae $11,88000
2007 April 1 to Nov. 15 2 cfs 640 af 100 ac 04000
2008 April 1 to Nov. 15 1 ets 320 af 50ac 520.
" Diversions are subject to reductions under the Stewart Decree
RENTAL AGREEMENT - Pg 1
The fee for rental of the water underwater right 63-148C is described above.
The annual payment for diversion of water during the 2005 irrigation season shall be
received by the Department of Water Resources ("department") prior to execution of
this agreement. Annual payments for the diversion of water during all subsequent
irrigation seasons shall be received by the Department prior to April 1 , the start of the
irrigation season , each year for the duration of the rental period.. The agreement will be
void if the payment is not received in a given year. The renter agrees to use the water
in accordance with the Water Supply Bank rules and in compliance with the conditions
of water use shown below,
Conditions of water use under this aQreement
1. Consumptive use of water under this agreement is limited to the consumptive
irrigation requirement recognized by the department of 3,,5 acre-feet per acre per
year
2. Water right 63-148C is designated as number 16 in the Boise River water
master's records and the Stewart Decree. Rental of water under this right is
subject to reductions under the Stewart Decree..
3, The rate of diversion when combined with all other water rights for the same land
shall not exceed 0.02 cfs for each acre of land
4. The use of water under this agreement shall be subject to the provisions of
Section 42-1766, Idaho Code
5. Rental of the specified right from the bank does not, in itself, confirm the validity
of the right or any elements of the water right, or improve the status of the right
including the notion of resumption of use" It does not preclude the opportunity
for review of the validity of this water right in the ongoing Snake River Basin
Adjudication or any other department application process.
6. The authorized diversion volume under this agreement is based on volume
reported by the lessor and may be subject to change based on historical
diversion of water under the right..
7. In the event that continued water use is not authorized, the renter agrees to hold
the Board, the Director and the state of Idaho harmless from any claim for
reimbursement or expenses associated with rental of water, or the development
of new and supplemental water uses.
8, Use of water under this agreement shall not prejudice any action of the
Department in its consideration of a permanent application for transfer filed by
the applicant for this same use.
RENTAL AGREEMENT - Pg 2
g. Use of water under this agreement does not constitute a dedication .of the water
to renter s place of use and upon expiration of this agreement, the points of
diversion and place of use of the water shall revert to those authorized under the
water right and/or again be available to rent from the bank..
10. Renter agrees to comply with all applicable state and federal laws while using
water under this agreement.
11 Renter agrees to hold the Board , the Director and the state of Idaho harmless
from all liability on account of negligent acts of the renter while using water.
12. Renter acknowledges and agrees that the Director may terminate diversion
water if the Director determines there is not a sufficient water supply for the
priority of the right or portion thereof being rented..
13, This rental agreement does not grant any right-of-way or easement to use the
diversion works or conveyance works of another party.
14.. Failure of the renter to comply with the conditions of this agreement is cause for
the Director to rescind rental agreement.
Dated this V:C-
dayof /11~Y 2005..
by
:z' V/VII' ~~~ffC/
-------------------------------------------------------------------------------------------
Having determined that this agreement satisfies the provisions of Section 42-
1763, Idaho Code, and , IDAPA 37.02.03030 (Water Supply Bank Rule 30), for the
rental and use of water under the terms and conditions herein provided , and none
other, I hereby execute this Rental Agreement on behalf of the Idaho Water Resource
Board this day of , 2005.
KARL J.. HE , Director
Department of Water Resources
RENTAL AGREEMENT - Pg 3
.. '"
Check Requistion
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UNITED WATER IDAHO
Date 12/19/05 For Office Use
Vendor#
Requis. #
Processed by Date
Amount 56 000.
Bus. Unit 060
Payable tc
Address
Water District #63
6616 Overland Road
Boise, 10 83706
i~jtc~~t~h~t--I~~~~~a~~~~*1."~\);:::,
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500 REGOP PCHWT WATER PURCHASE 50605 602000 WATER $56 000.
Explanation of Check
Water Bank Water Lease Agreement for 2006. 100AF X $14.00 = $56 000.
Mail Check to Vendor Route Check to
Requested By
Approved By
; ,
"yATER BANK WATER LEASE AGREEMENT
FOR
~()
(ft
The committee of Water District 63 being authorized pursuant to Idaho Code Section 42-
1765 to I"ase stored water which has been provided to the Water Supply Bank
1 ~f1':cl t1~reservoir space and have excess supplies for the current year, does agree to seU f 'entity),A.F. of water requested for
IrnOt
. I ,(use). This agreement is subject to the adopted Rules and Regulations of the
WaterSupply Bank and execution of same by the party herein named.
Upon receipt of$ C;'(JlSt)... ()f)and the infonnation r~uested below, the Boise
River Watennaster will release to u am storage, at the rate you specify
4; fJuo A.F. of stored
water between 'II, and ~ 30 ofle~
Description of point of diversion:
Located in
~ -
, Sec. T. ~-r R.
~~~~'
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Pump H.P. LiftHeadgate (canal) name if appropriate
DeSCriP
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Total number of acres irrigate: f(t.0\aus..l O"h 4 i
Dated this day of Ii, " 1P~
(name)
~L/-g 0, V/~+Jtn'~. R"~(address) q37Dq
State of Idah9/1 I
County of
On this jq-!l.day ~OS.befn
~7:the undersigned Nntary Public iuand for said county and state, personally appeared ..5-(1 b +1-(Jd know to me tobe the person whose name is subscribed to within instrument and acknowledged to me that he executed
the same. ~.."""""""
"m ~~~REOF, I have hereunto set my hand and affixed my official seal, theday and yef1t.~ce~~s(r~ written -. 0
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I have accepted the request of
To purchase water from the Water Supply Bank this day of
Watennaster, Water District No. 63
Agent for the Committee of Water District 63
K:\ScornWATERBANK WATERLEASEAGREEMENT.rtf
STORAGE RIGHT LEASE AND RENTAL AGREEMENT
This Agreement is by and between United Water Idaho Inc., an Idaho Corporation
United Water ), and Farmers ' Cooperative Irrigation Ditch Company, Inc., an Idaho non-profit
corporation ("Farmers' Cooperative " or the "Ditch Company
Recitals
Farmers' Cooperative is the holder of a contract right , pursuant to Contract No. ILR-411
(the "Contract"), to all waters stored within a 1 207 acre-foot portion of the water storage
space in Arrowrock Reservoir on the Boise River in Idaho. Pursuant to the Contract
Farmers' Cooperative has the right to secure the storage of water in such space , and to
demand any or all of it to be released annually for irrigation uses upon the lands of
Farmers' Cooperative s shareholders (the "Storage Right"
United Water supplies municipal and irrigation water to customers in the Treasure
Valley, and has diversion facilities on the Boise River through which it is able to place to
beneficial use any waters it might divert from the river. United Water desires to rent
some or all water available under the Storage Right through the Boise River Rental Pool
in Water District 63 ("Rental Pool") on an exclusive basis for beneficial use for irrigation
within United Water s water delivery system.
Farmers ' Cooperative desires to enter into a multi-year rental agreement under which
United Water would be entitled to use 1 100 acre-feet ("af') of the Storage Right but
which also preserves the Ditch Company s ability to use waters under the Storage Right
in times of water shortage.
Terms of A2reement
Now, therefore, for valuable consideration, including the mutual conditions and
covenants contained herein, the parties hereto agree as follows:
Lease of 1,100 af of storage for United Water s use through rental pool.During the term
of this Agreement, and subject to the conditions stated herein, Farmers ' Cooperative
annually shall lease or otherwise commit to the Rental Pool a 1 100 af portion of the
Storage Right (the "Leased Storage ) for United Water s exclusive use (to the extent the
Rental Pool rules allow such exclusivity) during the term of this Agreement.
United Water s exclusive rental right and right of first refusal.During the term of this
Agreement, United Water shall have the exclusive right to rent the Leased Storage from
the Rental Pool, subject to the dry year exception discussed below. At United Water
option, the rentals shall occur either as a single three-year rental (presuming that Rental
Pool rules are changed to accommodate multi-year rentals) or as three sequential one-
year rentals. Farmers ' Cooperative shall cooperate with United Water to implement
either option during the term of this Agreement.
Storage Lease Agreement (Farmers Cooperative)--
Term. This Agreement shall expire December 31 2008.
Annual payments. During the term of this Agreement, United Water shall make annual
rental pool payments to the Boise River Watermaster by January 31, or at such other time
as may be provided by applicable Rental Pool Rules, for each acre-foot of the Leased
Storage United Water will rent in that year, it being understood thatthe Watermaster will
forward such payments to Farmers' Cooperative , less the established Rental Pool
administrative fee. In addition to making such payments to the Watermaster, United
Water shall make payments directly to Farmers' Cooperative on or before May 1 of each
such year. In the first year of this Agreement, the payment to the Watermaster and the
payment directly to Farmers' Cooperative together shall produce a combined payment to
Farmers' Cooperative equal to three dollars and seventy-three cents ($3.73) more than the
then-prevailing Rental Pool rate (including the established Rental Pool administrative fee
which is retained by the Watermaster) for each acre-foot United Water diverted under the
Storage Right during such year. In each succeeding year of this Agreement, the payment
shall be increased at a rate equal to the increase in the Consumer Price Index - All Urban
Customers over the previous twelve months. In addition to the above payments, United
Water shall pay the operation and maintenance fees the Bureau of Reclamation places
upon the storage subject to this Agreement, provided that United Water shall not be
obligated to pay more than $0.65 per acre-foot for such fees.
..
S. 7.3 .f-r;!). IG. s:- -;:: -I.
Dry year exception. If, on March 1 of any year, snowpack and streamflow conditions in
the Boise River drainage are at or below levels that are expected by federal and state
officials to produce an annual inflow into the Boise River reservoirs of less than 1.
million acre-feet during that water year, and Farmers' Cooperative reasonably concludes
by duly-adopted resolution of its board of directors, that, due to such condition there will
be insufficient natural flow water in that year s irrigation season to supply the irrigation
needs of its shareholders and that the shareholders will need some or all of the water
available under the Storage Right to provide adequate irrigation to their lands during such
season, Farmers ' Cooperative may provide United Water with written notification of the
decision, and the portion of the Storage Right subject to it, on or before May 1 of such
year. Such notice shall specify the amount of the Storage Right, in acre-feet, that
Farmers ' Cooperative has decided to exempt from this Agreement for such season (the
Exempted Amount"). Upon such notice:
a. this Agreement shall be suspended, in whole or in such part necessary to supply
the Exempted Amount to Farmers ' Cooperative , until October 15 of such year;
b. the parties jointly shall notify the Watermaster of the suspension and request that
the Exempted Amount be removed from United Water s Rental Pool account and
instead be credited to Farmers ' Cooperative s account for delivery to its point of
diversion through October 14 of such year;
c. beginning October 15 of such year, if any of the Exempted Amount remains
unused, such amount shall be restored to United Water s Rental Pool account and
shall be available for delivery to and use by United Water; and
Storage Lease Agreement (Farmers Cooperative)--
12.
13.
d. for the following year, this Agreement once again shall be fully in force for the
entire amount of the Storage Right, subject to Farmers ' Cooperative s right once
again to invoke the dry year exception specified in this paragraph.
United Water s right to terminate. If any governmental entity places any costs, fees
charges, or assessments of any kind upon United Water directly, or indirectly through
Farmers ' Cooperative , regarding the use or delivery of any of the Storage Right beyond
those specified in paragraph 7 of this Agreement (other than normal increases in Rental
Pool charges that may be imposed on all renters from time to time), United Water shall
at its sole option and discretion, be entitled to terminate this Agreement and any long-
term lease entered pursuant to it upon written notice to Farmers' Cooperative. This
Agreement shall terminate thirty days after the receipt of such notice, provided that
United Water still shall remain liable to Farmers' Cooperative for all payments required
under this Agreement for water used during such year prior to the date termination is
effective.
10.Additional documentation; cooperation during term. The parties acknowledge that
implementing this Agreement may require amending the rules governing the Rental Pool
and also may entail the entry of additional rental agreements or other documentation.
Farmers ' Cooperative and United Water shall cooperate in efforts to advocate the
adoption of any such rule amendments as are necessary to implement this Agreement
and also shall cooperate with regard to producing any such additional documentation
provided, that United Water shall be responsible for, and shall bear the entire expense of
drafting any such amendments, agreements or other documentation.
11.Notices. Any notice provided for or concerning this Agreement shall be in writing, and
may be delivered by hand delivery or fax, but in any event shall be confirmed by placing
such notice in the United States mail to the respective address of United Water or the
Ditch Company as set forth below:
Farmers' Cooperative Ditch Company:United Water:
Mr. Rod Neilson, President
Farmers ' Cooperative Ditch Company
O. Box 430
Parma, Idaho 83660
United Water Idaho Inc.
8248 West Victory Road
P. O. Box 7488
Boise, Idaho 83707
Subject to federal approval.This contract shall be dated effective January 1 2005 upon
its execution by the parties , subject to any necessary approval from the United States.
The priority and the availability of water to be leased under this agreement is subject to
the terms, procedures , statutes, rules , and regulations of the Advisory Board of Water
District 63 (Rental Pool for District 63), the Idaho Department of Water Resources, Idaho
Water Resource Board, and any other controlling agency or board.
Binding effect.This Agreement shall bind the parties hereto, their employees, agents
heirs, successors, and assigns.
Storage Lease Agreement (Farmers Cooperative)--
14.Severability. If any of the provisions of this Agreement are deemed invalid by any court
or agency, the remaining provisions shall remain in effect.
15.No Waiver. A party s election not to enforce any right under this Agreement shall not
constitute a waiver of the party s entitlement to enforce such right in the future.
16.Authority. The parties each represent and warrant that they have authority to enter intothis agreement.
The parties hereby enter this Agreement as of the dates specified below.
UNITED WATER IDAHO INe.
3- /S-05
Date Signed
FARMERS' COOPERATIVE DITCH COMPANY , INC.
7LJRod Neilson
, .
residen
L~~SecreGry
I'-~A7"":2#,i7~
Date Sign a
Storage Lease Agreement (Farmers Cooperative)-
STORAGE RIGHT LEASE AND RENTAL AGREEMENT
This Agreement is entered effective the date last signed below by and between United
Water Idaho Inc., an Idaho Corporation ("United Water ), and Boise Valley Irrigation Ditch
Company, Inc., an Idaho non-profit corporation ("Boise Valley" or the "Ditch Company
Recitals
Boise Valley is the holder of a contract right to all waters stored within a 2 500 acre-foot
portion of the water storage space in Lucky Peak Reservoir on the Boise River in Idaho.
Pursuant to the Contract, Boise Valley has the right to secure the storage of water in such
space, and to demand any or all of it to be released annually for irrigation uses upon the
lands of Boise Valley s shareholders (the "Storage Right"
United Water supplies municipal and irrigation water to customers in the Treasure
Valley, and has diversion facilities on the Boise River through which it is able to place to
beneficial use any waters it might divert from the river. United Water desires to rent
some or all water available under the Storage Right through the Boise River Rental Pool
in Water District 63 ("Rental Pool") on an exclusive basis for beneficial use for irrigation
within United Water s water delivery system.
Boise Valley desires to enter into a multi-year rental agreement under which United
Water would be entitled to use 1 000 acre-feet ("ar') of the Storage Right but which also
preserves the Ditch Company s ability to use waters under the Storage Right in times of
water shortage.
Terms of Agreement
Now, therefore, for valuable consideration, including the mutual conditions and
covenants contained herein, the parties hereto agree as follows:
Lease of 1 ,000 af of storage for United Water s use through rental pool.During the term
of this Agreement, and subject to the conditions stated herein, Boise Valley annually
shall lease or otherwise commit to the Rental Pool a 1 000 afportion ofthe Storage Right
(the "Leased Storage
United Water s exclusive rental right and right of first refusal.During the term of this
Agreement, United Water shall have the exclusive right to rent the Leased Storage from
the Rental Pool (to the extent the Rental Pool rules allow or are amended to allow such
exclusivity), subject to the dry year exception discussed below. At United Water
option, the rentals shall occur either as a single five-year rental (presuming that Rental
Pool rules are changed to accommodate multi-year rentals) or as five sequential one-year
rentals. Boise Valley shall cooperate with United Water to implement either option
during the telID of this Agreement. If, in any year, Boise Valley commits to the Rental
Pool more water than the 1 000 af already subject to this Agreement, Boise Valley shall
provide United Water with advance notice of such decision and provide United Water
RENTAL POOL AGREEMENT (UNITED W A TERIBOISE VALLEY) - PAGE 1 OF 4
C:\DOCUMENTS AND SEITINGSISRHEADILoc.'IL SEITINGsITEMPORARY INTIR1\'ET FILESIOLKEE\2006 BVIDCO RENT.'IL POOL LEASE.DOC
with the right to make first application to rent such water from the Rental Pool, provided
that the price for such additional storage shall be subject to negotiation.
Term: Extension.This Agreement shall expire December 31 , 2010, provided that United
Water and Boise Valley may, by mutual agreement reached before the end of such term
extend the term of this Agreement.
Annual payments. During the term of this Agreement, United Water shall make annual
rental pool payments in an amount equal to the then prevailing rental pool rate (currently
$14 per at) to the Boise River Watermaster by January 31 , or at such other time as may
be provided by applicable Rental Pool Rules, for the Leased Storage made available for
rental to United Water, it being understood that the Watermaster will forward such
payments to Boise Valley, less the established Rental Pool administrative fee. In additionto making such payments to the Watermaster, United Water shall make payments directly
to Boise Valley on or before May 1 of each such year in an amount equal to 50 percent of
the then-prevailing Rental Pool rate (for example, an additional $7.00 per afbased on the
current rental pool price of $14 per at) for the Leased Storage made available for rental to
United Water during such year.
Dry year exception. If, prior May 1 of any year, snowpack and streamflow conditions in
the Boise River drainage are at or below levels that are expected by the Watermaster to
produce an annual inflow into the Boise River reservoirs by June 1 of less than 1.
million acre-feet, and Boise Valley reasonably concludes, by duly-adopted resolution of
its board of directors, that, due to such condition there will be insufficient natural flow
water in that year s irrigation season to supply the irrigation needs of its shareholders and
that the shareholders will need some or all of the water available under the Storage Right
to provide adequate irrigation to their lands during such season, Boise Valley may
provide United Water with written notification of the decision, and the portion of the
Storage Right subject to it, on or before May 1 of such year. Such notice shall specify the
amount of the Storage Right, in acre-feet, that Boise Valley has decided to exempt from
this Agreement for such season (the "Exempted Amount"). Upon such notice:
this Agreement shall be suspended, in whole or in such part necessary to supply
the Exempted Amount to Boise Valley, until October 15 of such year;
the parties jointly shall notify the Watermaster of the suspension and request that
the Exempted Amount be removed from United Water s Rental Pool account and
instead be credited to Boise Valley s account for delivery to its point of diversion
through October 14 of such year;
beginning October 15 of such year, if any of the Exempted Amount remains
unused, such amount shall be restored to United Water s Rental Pool account and
shall be available for delivery to and use by United Water;
for the following year, this Agreement once again shall be fully in force for the
entire amount of the Leased Storage, subject to Boise Valley s right once again to
RENTAL POOL AGREEMENT (UNITED WATERIBOISE VALLEY) - PAGE 2 OF 4
C:\DOClIMEI'-TS ',"D SmINGS\SRHEADILOCAL SE1TINGs\TEMPOIl".RY INTERNET FILES\OLKEE\2006 BVIDCO RENTAL POOL LEASE.DOC
12.
13.
invoke the dry year exception specified in this paragraph; and
by January 31 following the year in which the dry year exception is exercised
Boise Valley shall repay to United Water, or credit to United Water against
amounts owing to Boise Valley for the succeeding year s lease, if a lease is
entered, those sums paid to Boise Valley as additional payments attributable to
water that then was not delivered to United Water due to the exercise of the dry
year exception.
United Water s right to terminate. If any governmental entity places any costs, fees
charges, or assessments of any kind upon United Water directly, or indirectly through
Boise Valley, regarding the use or delivery of any of the Storage Right beyond those
specified in paragraph 7 of this Agreement (other than reasonable increases in Rental
Pool charges that may be imposed on all renters from time to time), United Water shall
at its sole option and discretion, be entitled to terminate this Agreement and any long-
term lease entered pursuant to it upon written notice to Boise Valley. This Agreement
shall terminate thirty days after the receipt of such notice, provided that United Water
still shall remain liable to Boise Valley for all payments required under this Agreement
for water used during such year prior to the date termination is effective.
10.Additional documentation; cooperation during term. The parties acknowledge that
implementing this Agreement may require amending the rules governing the Rental Pool
and also may entail the entry of additional rental agreements or other documentation.
Boise Valley and United Water shall cooperate in efforts to advocate the adoption of any
such rule amendments as are necessary to implement this Agreement, and also shall
cooperate with regard to producing any such additional documentation, provided, that
United Water shall be responsible for, and shall bear the entire expense of, drafting any
such amendments, agreements or other documentation.
11.Notices. Any notice provided for or concerning this Agreement shall be in writing, and
may be delivered by hand delivery or fax, but in any event shall be confirmed by placing
such notice in the United States mail to the respective address of United Water or the
Ditch Company as set forth below:
Boise Valley:United Water:
Boise Valley Irrigation Ditch Company
8750 N. Bogart Lane
Boise, Idaho 83714
United Water Idaho Inc.
8248 West Victory Road
P. O. Box 190420
Boise, Idaho 83719-0420
Binding effect.This Agreement shall bind the parties hereto, their employees, agents
heirs, successors , and assigns.
Severability. If any of the provisions of this Agreement are deemed invalid by any court
or agency, the remaining provisions shall remain in effect.
RENTAL POOL AGREEMENT (UNITED W A TERIBOISE VALLEY) - PAGE 3 OF 4
S:\ENGRISTORAGE RIGHT LEASE AND REI-.'TAL AGREEMEI-.'T\2006 BvIDCO REI-.'TAL POOL LEASE,DOC
14.No Waiver.A party s election not to enforce any right under this Agreement shall not
constitute a waiver of the party s entitlement to enforce such right in the future.
15.Authority. The parties each represent and warrant that they have authority to enter intothis agreement.
UNITED WATER IDAHO INC.
o9~o6
Date Signed
BOISE VALLEY IRRIGATION DITCH COMPANY
~.
7~c~
Date Signed
~-
7-Op
Date Signed
~f', cllllQ(tJ~
RENTAL POOL AGREEMENT (UNITED W A TERIBOISE VALLEY) - PAGE 4 OF 4
C:\DOCUMENTS AND SmINGslsRHEADILOCAL SETTINGSITEMPORARY INTERNET FILEsIOLKEE\2006 BVIDCO RENTAL POOL LEASE,DOC
. .,. . ..
STORAGE RIGHT LEASE AND RENTAL AGREEMENT
This Agreement is entered effective the date last signed below by and between United
Water Idaho Inc., an Idaho Corporation ("United Water ), and Eureka Ditch Company, an Idaho
corporation ("Eureka" or the "Ditch Company
Recitals
Eureka is the holder of a contract right (the "Contract") to all waters stored within a 2 800
acre-foot portion of the water storage space in Lucky Peak Reservoir on the Boise River
in Idaho. Pursuant to the Contract, Eureka has the right to secure the storage of water in
such space, and to demand any or all of it to be released annually for irrigation uses upon
the lands of Eureka s shareholders (the "Storage Right"
United Water supplies municipal and irrigation water to customers in the Treasure
Valley, and has diversion facilities on the Boise River through which it is able to place to
beneficial use any waters it might divert from the river. United Water desires to rent
some or all water available under the Storage Right through the Boise River Rental Pool
in Water District 63 ("Rental Pool") on an exclusive basis for beneficial use for irrigation
within United Water s water delivery system.
Eureka desires to enter into a one-year rental agreement under which United Water would
be entitled to use 1 000 acre-feet ("ar') of the Storage Right.
Terms of Agreement
Now, therefore, for valuable consideration, including the mutual conditions and
covenants contained herein, the parties hereto agree as follows:
Lease of 1,000 af of storage for United Water s use through rental pool.During 2006
and subject to the conditions stated herein, Eureka shall lease or otherwise commit to the
Rental Pool a 1 000 afportion of the Storage Right (the "Leased Storage ) for United
Water s exclusive use.
United Water s exclusive rental right and right of first refusal.United Water shall have
the exclusive right to rent the Leased Storage from the Rental Pool in 2006. If Eureka
commits to the Rental Pool more water than the 1 000 af already subject to this
Agreement, Eureka shall provide United Water with advance notice of such decision and
provide United Water with the right to make first application to rent such water from the
Rental Pool, provided, that the price for such additional storage shall be subject to
negotiation.
Term; Extension. This Agreement shall expire December 31 , 2006, provided that United
Water and Eureka may, by mutual agreement reached before the end of such term, extend
the term of this Agreement.
RENTAL POOL AGREEMENT (UNITED W ATERIEUREKA) - PAGE 1 OF 3
S:IENGRISTORAGE RIGHT LEASE AND RENTAL AGREEMENTIEUREAKA 2006 WATERBANK LEASE,DOC
. ..
12.
13.
ayment.United Water shall make payment of$14.00 per acre foot to the Boise River
Watermaster by January 31 , 2006, or at such other time as may be provided by applicable
Rental Pool Rules, for the Leased Storage made available for rental to United Water, it
being understood that the Watermaster will forward such payments to Eureka, less the
established Rental Pool administrative fee. In addition to making such payment to the
Watermaster, United Water shall make an additional payment directly to Eureka on or
before May 1 , 2006 in amount $7.00 per acre foot for the Leased Storage made available
for rental to United Water.
United Water s right to terminate. If any governmental entity places any costs , fees
charges, or assessments of any kind upon United Water directly, or indirectly through
Eureka, regarding the use or delivery of any of the Storage Right beyond those specified
in paragraph 7 of this Agreement (other than normal increases in Rental Pool charges that
may be imposed on all renters from time to time), United Water shall, at its sole option
and discretion, be entitled to terminate this Agreement upon written notice to Eureka.
This Agreement shall terminate thirty days after the receipt of such notice, provided that
United Water still shall remain liable to Eureka for all payments required under this
Agreement for water used during such year prior to the date termination is effective.
10.Additional documentation: cooperation during term. The parties acknowledge that
implementing this Agreement may require amending the rules governing the Rental Pool
and also may entail the entry of additional rental agreements or other documentation.
Eureka and United Water shall cooperate in efforts to advocate the adoption of any such
rule amendments as are necessary to implement this Agreement, and also shall cooperate
with regard to producing any such additional documentation, provided, that United Water
shall be responsible for, and shall bear the entire expense of, drafting any such
amendments, agreements or other documentation.
11.Notices. Any notice provided for or concerning this Agreement shall be in writing, and
may be delivered by hand delivery or fax, but in any event shall be confirmed by placing
such notice in the United States mail to the respective address of United Water or the
Ditch Company as set forth below:
Eureka:United Water:
Eureka Ditch Company
c/o Terry Wickstrom
6820 W. Joplin Road
Meridian, Idaho 83642-5018
United Water Idaho Inc.
8248 West Victory Road
P. O. Box 190420
Boise, Idaho 83719-0420
Binding effect.This Agreement shall bind the parties hereto, their employees, agents
heirs, successors, and assigns.
Severability. If any of the provisions of this Agreement are deemed invalid by any court
or agency, the remaining provisions shall remain in effect.
RENTAL POOL AGREEMENT (UNITED WATERIEUREKA) - PAGE 2 oF3S:IENGR\STORAGE RIGHT LEASE AND RENTAL AGREEMENTIEUREAKA 2006 WATERBANK LEASE. DOC
'of
~ .
14.No Waiver.A party s election not to enforce any right under this Agreement shall not
constitute a waiver ofthe party s entitlement to enforce such right in the future.
15.Authority. The parties each represent and warrant that they have authority to enter into
this agreement.
UNITED WATER IDAHO INC.
J--OC;-~O6
Date Signed
EUREKA DITCH COMPANY
fiAk C j L
President
~A
ecr
t'/boG
Date Signed
"""'----/- /~-
CJ f..r.
Date Signed
RENTAL POOL AGREEMENT (UNITED W ATERIEUREKA) - PAGE 3 OF 3
S:IENGR\STORAGE RIGHT LEASE AND RENrAL AGREEMENTIEUREAKA 2006 WATERBANK LEASE. DOC
STORAGE RIGHT LEASE AND RENTAL AGREEMENT
This Agreement is entered effective the date last signed below by and between United
Water Idaho Inc., an Idaho Corporation ("United Water ), and Canyon County Water Company,
Ltd, an Idaho corporation ("CCWC" or the "Ditch Company
Recitals
CCWC is the holder of a contract right (the "Contract") to all waters stored within a
000 acre-foot portion of the water storage space in Lucky Peak Reservoir on the Boise
River in Idaho. Pursuant to the Contract, CCWC has the right to secure the storage of
water in such space, and to demand any or all of it to be released annually for irrigation
uses upon the lands ofCCWC's shareholders (the "Storage Right"
United Water supplies municipal and irrigation water to customers in the Treasure
Valley, and has diversion facilities on the Boise River through which it is able to place to
beneficial use any waters it might divert from the river. United Water desires to rent
some or all water available under the Storage Right through the Boise River Rental Pool
in Water District 63 ("Rental Pool") on an exclusive basis for beneficial use for irrigation
within United Water s water delivery system.
CCWC desires to enter into a one-year rental agreement under which United Water
would be entitled to use 900 acre-feet ("ar') of the Storage Right.
Terms of Agreement
Now, therefore, for valuable consideration, including the mutual conditions and
covenants contained herein, the parties hereto agree as follows:
Lease of900 af of storage for United Water s use through Rental Pool.During 2006, and
subject to the conditions stated herein, CCWC shall lease or otherwise commit to the
Rental Pool a 900 afportion ofthe Storage Right (the "Leased Storage ) for United
Water s exclusive use.
United Water s exclusive rental right and right of first refusal.United Water shall have
the exclusive right to rent the Leased Storage from the Rental Pool in 2006. If CCWC
commits to the Rental Pool more water than the 900 af already subject to this Agreement
CCWC shall provide United Water with advance notice of such decision and provide
United Water with the right to make first application to rent such water from the Rental
Pool, provided, that the price for such additional storage shall be subject to negotiation.
Term; Extension. This Agreement shall expire December 31 , 2006, provided that United
Water and CCWC may, by mutual agreement reached before the end of such term, extend
the term of this Agreement.
ayment.United Water shall make payment of$14.00 per acre foot to the Boise River
RENTAL POOL AGREEMENT (UNITED W ATERICANYON COUNTY) - PAGE 1 OF 3
S:\ENGRISTORAGE RIGHT LEASE AND RENTAL AGREEMENTICANYON COUNTY 2006 WATER BANK LEASE,DOC
12.
13.
14.
Watermaster by January 31 , 2006, or at such other time as may be provided by applicable
Rental Pool Rules, for the Leased Storage made available for rental to United Water, it
being understood that the Watermaster will forward such payments to CCWC, less the
established Rental Pool administrative fee. In addition to making such payment to the
Watermaster, United Water shall make an additional payment directly to CCWC on or
before May 1 2006 in amount $7.00 per acre foot for the Leased Storage made available
for rental to United Water.
United Water s right to terminate. If any governmental entity places any costs, fees
charges, or assessments of any kind upon United Water directly, or indirectly through
CCWC, regarding the use or delivery of any ofthe Storage Right beyond those specified
in paragraph 7 of this Agreement (other than normal increases in Rental Pool charges that
may be imposed on all renters from time to time), United Water shall, at its sole option
and discretion, be entitled to terminate this Agreement upon written notice to CCWc.
This Agreement shall terminate thirty days after the receipt of such notice, provided that
United Water still shall remain liable to CCWC for all payments required under this
Agreement for water used during such year prior to the date termination is effective.
10.Additional documentation; cooperation during term. The parties acknowledge that
implementing this Agreement may require amending the rules governing the Rental Pool
and also may entail the entry of additional rental agreements or other documentation.
CCWC and United Water shall cooperate in efforts to advocate the adoption of any such
rule amendments as are necessary to implement this Agreement, and also shall cooperate
with regard to producing any such additional documentation, provided, that United Water
shall be responsible for, and shall bear the entire expense of, drafting any such
amendments, agreements or other documentation.
11.Notices. Any notice provided for or concerning this Agreement shall be in writing, and
may be delivered by hand delivery or fax, but in any event shall be confirmed by placing
such notice in the United States mail to the respective address of United Water or the
Ditch Company as set forth below:
CCWC:United Water:
CCWC Water Company
7650 N Star Rd
Meridian, Idaho 83642
United Water Idaho Inc.
8248 West Victory Road
P. O. Box 190420
Boise, Idaho 83719-0420
Binding effect.This Agreement shall bind the parties hereto, their employees, agents
heirs, successors, and assigns.
Severability. If any of the provisions of this Agreement are deemed invalid by any court
or agency, the remaining provisions shall remain in effect.
No Waiver.A party s election not to enforce any right under this Agreement shall not
RENTAL POOL AGREEMENT (UNITED W A TERICANYON COUNTY) - PAGE 2 OF 3
S:\ENGRISTORAGE RlGHT LEASE AND REtfTAL AGREEMENTICANYON COUNTY 2006 WATER BANK LEASE.DOC
a '
constitute a waiver of the party s entitlement to enforce such right in the future.
15.Authority. The parties each represent and waITant that they have authority to eriter into
this agreement.
UNITED WATER IDAHO INC.
-1 CJ -0-6
Date Signed
CCWC WATER COMPANY
?&J
President
p/o-b
ate Sigrfe
A(izt
Secretary
:5 - Z--
Date Signed
RENTAL POOL AGREEMENT (UNITED W ATERICANYON COUNTY) - PAGE 3 OF 3
S:\ENGRISTORAGE RlGHT LEASE AND RENTAL AGREEMENTICA.'lYON COUNTY 2006 WATER BANK LEASE.DOC
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.
Please provide records showing the quantities of water treated daily by the
Columbia Water Treatment Plant from the date the plant went online until the
present.
RESPONSE NO.
Please find the requested information in the attached production summary report
for the Columbia Water Treatment Plant from initial startup 03/11/2005 through
03/30/2006.
'.-' -.-,' -
::c;,P~;'
2583.
1305.
1456.
2649.
3402.
3500.
3756.
3766.
3892.4
3910.4
3846.
3696.
3200.0
3881.9
3823.
3752.
3705.3
4429.
3653.
3424.
3254.
3646.
3629.
3788.
3800.
3681.0
3895.
3451.4
4763.
3819.4
3798.
3868.
3866.
3910.
3705.
3366.
.-'
3896.
3935.
3909.
3800.
3153.
3257.
3666.
3194.
3385.24.
3414.24.
3347.24.
3264.24.
3486.24.
3326.24.
3458.24.
3677.24.
3659.24.
3472.0 24.
2687.24.
2051.0 24.
1929.24.
2066.24.
2027.24.
2024.24.
..,.
1931.0 24.
2000.24.
2319.24.
3177.24.
3181.0 24.
4090.24.
3169.24.
3625.24.
3278.24.
2965.24.
2965.24.
3888.24.
3865.24.
3306.24.
3236.24.
2438.24.
3743.24.
3729.24.
3722.24.
3978.24.
3854.24.
3813.24.
3222.24.
3221.0 24.
3230.24.
3799.24.
3764.24.
3854.24.
3785.24.
3700.24.
3653.24.
3937.24.
3938.24.
4055.24.
4165.24.
3350.24.
3360.24.
3402.24.
4051.0 24.
4055.24.
4099.24.
4121.5 24.
4000.24.
3925.24.
4016.24.
4089.24.
4085.24.
4085.21.9
3999.24.
3222.24.
3944.24.
4170.24.
4170.24.
4165.24.
4168.24.
4177.24.
4031.0 23.
4183.24.
4159.24.
4160.24.
4160.24.
4150.24.
4144.24.
4176.24.
4175.24.
4160.24.
4144.24.
4162.24.
4144.24.
4180.24.
4190.24.
4199.24.
4217.24.
4206.24.
4201.0 24.
4044.24.
4324.23.
4099.24.
4269.24.
4269.24.
4260.24.
4323.24.
4315.24.
4167.24.
4167.24.
4168,24.
4166.24.
4166.24.
4166.24.
4167.24.
4167.24.
4167.24.
4167.24.
4167.24.
4167.24.
4167.24.
4167.24.
4167.24.
4167.24.
4143.24.
4166.24.
4166.24.
4167.24.
4167.24.
4167.24.
4167.24.
4167.24.
4167.24.
4168.24.
4216.24.
4209.24.
4121.0 24.
4167.24.
4167.24.
4060.24.
4049.24.
4350.24.
4510.24.
4333.24.
4208.24.
4188.24.
4431.0 24.
4007.24.
4410.24.
4674.24.
4104.24.
4140.24.
4360.24.
4350.24.
4240.24.
3600.24.
3820.24.
4090.24.
4130.24.
4100.24.
4153.24.
3580.0 24.
3710.24.
4210.24.
3333.24.
3510.24.
4097.24.
4035.24.
3688.24.
4014.24.
4271.0 24.
4000.24.
4243.24.
2875.24.
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UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.
Please list and describe specific actions taken by CDM to achieve early
completion of the CWTP.
RESPONSE NO.
From the time CDM was given notice to proceed they went forward with an
efficient management approach to meeting the Companies expectations. The
actions include:
Aggressive early procurement of major equipment and material packages
to protect against delays and material cost increases, especially steel and
concrete.
. CDM assumption of risk (without adding cost) to expedite the project
schedule: mobilization and construction start in parallel with permit
processing; consolidation of factory tests into field-tests where appropriate
to expedite equipment delivery.
Focused follow through of design team especially with DEQ to obtain
phased permits and approvals to keep construction moving.
Increased attention to coordination of the construction team and
subcontractors to anticipate and avoid delays especially in shop drawing
approval turnaround.
Schedule management to reduce float time between subcontractors
utilizing a structured meeting and action log process.
Detailed attention of transition from construction to operation , including
detailed breakdown of startup prerequisites, rigorous planning and
management of responsibilities, timing, and activity completion.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.
If UWI desired to have the Columbia Water Treatment Plant (CWTP) construction
and testing complete by early April 2005, please explain why UWI did not require
an April 2005 completion date in the original contract, with no provisions for an
early completion bonus.
RESPONSE NO.
Requirement of an April 2005 completion date would likely have resulted in the
contractor being unwilling to contract or would have required a higher price to
complete early. The best balance of cosUrisk was an aggressive 16 months
schedule with contact provisions for both early completion and late completion built
into the contract. The contractor was not willing to execute the contract without a
fair and reasonable completion schedule including an early completion incentive
because of the associated liquidated damage provision. This type of provision is
an industry standard within the Design-Build Institute forms of agreement.
Customers certainly benefited by having the project completed before peak water
demands that occur in the late spring and early summer. With the project being
substantially complete and placed in service in March, there was sufficient time to
test and operate the pump station and new technologies associated with the plant
equipment. The Company was thus able to confirm plant reliability prior to peak
water demand season. This was all able to occur during the March to June 2005
time frame so as to ensure reliable and uninterrupted service to customers during
higher summer demands.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.
On what date does UWI estimate that COM would have completed construction
and testing of the CWTP had no early completion incentive been offered?
RESPONSE NO.
It is impossible to predict an exact outcome for a complex project such as
Columbia Water Treatment Plant had no early incentive or liquidated damages
provision been included in the contract. At the time of contract execution, June
, 2005 was the best prediction for plant start up and commencement of the 30
day facility test period.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.
What was the amount of the bonus paid to COM for early completion? Did COMearn the maximum bonus possible under the early completion incentive
provisions of the contract for the CWTP?
RESPONSE NO.
The actual amount paid was 82 days at $3 500/day for a total of $287.000. The
contract did not have provisions for a "maximum" or "minimum" bonus. The
incentive was a per day award of $3 500 for each day the facility test was
commenced prior to June 1 , 2005. The facility test was commenced on March
, 2005.
UNITED WATER IDAHO INC.
CASE UWI-O6-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.
What criteria or standards were used to determine the official completion date of
the CWTP for purposes of determining eligibility and computing the early
completion bonus paid to CDM?
RESPONSE NO.
The standard to commence the 30-day facility test is established by the Idaho
Department of Environmental Quality (DEQ). DEQ wrote a letter March 2 , 2005
and an associated e-mail March 3 , 2005, which outlined the requirements. Water
was tested for compliance with drinking water standards for acute contaminants
March 4 , 2005. The final step was to confirm that on-line monitoring equipment
was functioning property. DEQ confirmed that water could be delivered to
customers March 10 , 2005, which allowed the commencement of the full 30-day
facility test on March 11 , 2005.
UNITED WATER IDAHO INC.
CASE UWI-O6-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.
Please list and describe all work on the CWTP completed after the official
completion date for purposes of determining eligibility and computing the early
completion bonus paid to COM. Was COM or any of its subcontractors paid forany work completed after the official completion date?
RESPONSE NO.
It is important to understand and clarify completion terms in the contract
according to Amendment No.1. The only specific dates related to completion
are:
Substantial Completion
. 30-day facility test start
July 1 , 2005
June 1 , 2005
The actual 30-day facility test start date was March 11 , 2005. The work
completed by COM and subcontractors after March 11 , 2005 consisted of
landscaping, punch list work, demobilization, training, as-built drawing
preparation , warranty execution and final cleanup. Yes, COM and
subcontractors were paid for the above-described work.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO.1 0:
Were progress payments made to COM based on the actual costs incurred by
COM during a period , or were the payments made for predetermined amounts
regardless of COM's actual costs?
RESPONSE NO. 10:
All progress payments were based on actual incurred costs plus a portion of the
predetermined fixed fee.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 11:
Why would COM agree to complete the project early and receive a bonus of
500 per day if the alternative was to complete the project according to the
original schedule and be paid $5 191 per day? Wouldn t COM have received
691 more per day if it completed the project according to the original
schedule?
RESPONSE NO. 11:
It is important to understand the nature of the contract and basis of payment.
COM's only "profit" was in the predetermined fixed fee and any potential early
completion bonus. All other direct costs, including the estimated $5 191 dailyburn rate were billed to and paid by United Water, without any mark-up or profit.
If COM had only been able to meet the original schedule it is true they would
have accumulated more cost and been paid , but there is no incentive to do that
because it is only a direct pass through. There is no financial advantage for them
to stay on the job longer than required. The contract was specifically developed
to keep this from happening if not necessary.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 12:
Besides the $3 500 per day early completion incentive, what other incentives did
COM have to complete the project early?
RESPONSE NO. 12:
There are no other direct financial incentives. United Water is unaware of any
other incentives COM might have had for early completion other than the
contractual financial incentive for early completion.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 13:
On page 5, line 22 through page 6, line 3 of your direct testimony, you state "Yes.
Included in the COM contract was an allowance for project management costs
computed on a per diem basis. These costs are shown on Exhibit 8, page 1 of 1
and total $5 191 per day. These costs are charged to the project each day up to
the date of substantial completion , so long as the guaranteed maximum price is
not exceeded." The document shown in Exhibit 8 does not appear in the COMcontract provided to Staff in Case No. UWI-04-, nor in COM's proposal to
UWI. Please provide a copy of the document from which Exhibit 8 was
extracted. In addition , please provide any supporting documentation to back up
the statements in your testimony reference above.
RESPONSE NO. 13:
The reference to an "allowance" in the COM contract is perhaps confusing. The
statement about a per diem basis is meant to clarify that the contract allows COM
to pass through m! costs to United Water including project management costs.
These costs were averaged on a per day basis for comparison purposes related
to the early completion incentive. The Exhibit 8 document was identical to the
Exhibit attached as Schedule 1 referenced on page 4 , lines 11-22 of rebuttal
testimony provided by Mr. Scott Rhead in Case No. UWI-04-4. There is not
supporting documentation other than the detailed monthly invoices that confirm
salaries, general construction costs etc. These monthly invoices and supporting
documents were thoroughly reviewed by P.C. audit staff as a part of Case No.
UWI-04-
Exhibit 8 of this current case was developed during rebuttal testimony of Case
No. UWI-04-4 to explain what could be expected for average costs per day
based on actual job history. These costs of $5 191/day would have been passed
through to United Water for each day up to the guaranteed maximum price. By
ending the job early and paying the lesser amount of $3 500/day the overall job
saved $1 ,691/day of avoided costs.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 14:
Assuming project management costs of $5 191 per day had been charged and
that construction of the CWTP had not been completed early, on what date would
the Guaranteed Maximum Price have been equaled?
RESPONSE NO. 14:
An actual specific date is unknown. Without the early completion incentive it is
very possible that the project construction and associated costs would have
occurred later than what actually occurred. Without the early completion
incentive , it is impossible to predict when the GMP would have been reached.
The best assumption is June 1 , 2005.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 15:
On page 8, lines 5-, you state "The Snake and Boise River runoff forecast is
expected to be sufficient to allow the exchange of surface water between the
river basins as established by the Company s Initial Butte and Wilson Farm
Water right purchases." Please state the amount of water the Company expects
to be able to exchange in 2006 for both the Initial Butte and Wilson Farm water
rights.
RESPONSE NO. 15:
This amount "of actual" is shown on Exhibit 10 under the general category of
Natural Flow column #6(Limit) opposite Wilson Snake River (1300 at) and Initial
Butte (4 200 af). In total the company expects to be able to exchange 5,500 af in
2006 if the Bureau of Reclamation keeps the Salmon flow augmentation timing the
same as in previous "good" water years.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 16:
Exhibit 8 includes 1 300 acre-feet of a total of 2 745 acre-feet of the Wilson
rights, and 4 200 acre-feet of a total of 9,247 acre-feet of the Initial Butte water
rights. Are these the amounts the Company expects it will be able to exchange
in a normal water year?
RESPONSE NO. 16:
Yes these are the expected exchange amounts in a normal year based on
previous Bureau of Reclamation Salmon flow augmentation targets. It is critical
to point out that to be able to exchange those amounts the Company is required
to own the full water rights and associated amounts.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 17:
The total volume of water available for use by UWI in a normal year appears to
be 16 854 acre-feet (Rhead Exhibit 10). The information provided on rebuttal in
Case No. UWI-04-4 (Rhead Exhibit No. 16, Schedule 7) shows a total normal
volume of water available to be 13,454 acre-feet. Both exhibits include a note
stating that the Marden Water Treatment Plant and the Columbia Water
Treatment Plant need approximately 12 000 to 13,000 acre-feet to operate at
summer peak capacity. Please identify and describe additional water purchases
or leases since the UWI-04-4 case and explain why the additional amounts are
needed. For example, given that 2006 is likely to be a much better water year
explain why UWI has acquired 3,400 more acre-feet of water in 2006 than were
acquired in 2004 when it expects to be able to exchange Snake River water in
2006 that could not be exchanged in 2004.
RESPONSE NO. 17:
The Company has acquired no "new surface water since Case No. UWI-04-
When preparing the Exhibit 10 for this current case omissions were identified on
the Exhibit No. 16 Schedule 7 used for rebuttal. Volumes should have been
provided in column 6 under the Limit column for Wilson Snake River-1 ,300 acre-
feet (af), Anderson Ranch Bureau of Reclamation (BOR)-1 ,000 af, South Boise
Mutual Irrigation Company (SBMIC) Lucky Peak BOR-500 af, and Capital View
Lucky Peak BOR-300 af. Please note the annual costs were not omitted for
these lines and were included in the expected "normal" at that time. Completely
omitted from the Exhibit No. 16 Schedule 7 was Boise City Canal Company
Lucky Peak BOR-300 af. These omissions total out to the 3,400 af in question.
The total of 16 854 af is a reasonable amount of portfolio "control" for the
combined plant capacities under the current operating scenario. Drought
protection storage space needs to be maintained in Anderson Ranch and Lucky
Peak on good water years and totals 2 100 af. Reducing the 16,854 af by this
amount leaves 14 754 af compared to the 13 000 af needed which is well within
reasonable expectations given the unknown conditions and annual fluctuations in
surface water supply availability that could affect production and the ability to do
off peak aquifer storage and recovery.
Prudent management of the annual portfolio of water rights is important. This
nominal capacity is not necessarily always reliable capacity and the limiting
conditions are explained in the Exhibit. The Company needs flexibility to operate
at different production rates based on other well source emergencies or water
quality changes elsewhere in the system.
To avoid confusion it is important to note that the above discussion relates to
surface water acquisitions and compares the Exhibits in question. Please note
that as a part of the Response for Audit Request No.2 question No. 59, there is
approximately 675 af more on the accumulated total (17 528.4 af). This addition
was for qround water rented from the State Water Bank needed for Fisk and
Maple Hills #1 wells due to delays in a pending transfer being reviewed by Idaho
Department of Water Resources.
UNITED WATER IDAHO INC.
CASE UWI-06-
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: Scott Rhead
Telephone: [phone]
Title: Managing Engineer
REQUEST NO. 18:
Does UWI expect to need to acquire water from the Basin 63 Rental Pool in
years when it will be able to exchange Wilson Farm and Initial Butte Snake River
water? Does UWI believe it needs to acquire Basin 63 Rental Pool water in a
normal Year? If so, how much?
RESPONSE NO. 18:
Yes , water is needed from the Basin 63 Rental Pool. It is necessary to acquire
the 4 000 af shown on Exhibit 10 from the Basin 63 Rental Pool even though the
exchange is available this year. The exchange is only available during Salmon
augmentation typically June 20th through August 20th . Surface water is needed in
a normal year outside this period in spring, fall and winter to meet demand. One
of the most beneficial "rules" of the Basin 63 Rental Pool is the flexibility to
change nature , timing and place of use administered by the Boise River Water
Master. This flexibility is given to the Basin 63 Rental Pool by the Idaho
Department of Water Resources in order to meet short-term needs and keep
water beneficially used where necessary through a market of willing parties.