ITEM: 5

SUBJECT: PROPOSED RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A FIVE YEAR WATER RIGHT SERVICES CONTRACT BETWEEN THE STATE WATER RESOURCES CONTROL BOARD AND THE U.S. BUREAU OF RECLAMATION

DISCUSSION: Water Code Section 1560 exempts the United States from fees on applications to appropriate water to be used in furtherance of projects under supervision of the United States Bureau of Reclamation (Bureau). However, Section 1560 authorizes the Board to enter contractual arrangements for reimbursement, in whole or inpart, for services provided directly or indirectly in connection with or for protection of rights under applications, permits, or licenses of the Bureau.

The existing contract for water right services between the Bureau and the Board will expire September 30, 1998. The Board staff has negotiated a new contract for reimbursement for services for federal fiscal years 1998/99 through 2002/03 (October 1, 1998 to September 30, 2003). The total reimbursement collected under the proposed contract will be up to $1,150,000 depending on the hours charged by the staff to SWRCB Program Cost Account 60601. Because the general delegation to the Executive Director to execute contracts is limited to $200,000 and three years duration, specific authorization is required for the Board to accept these funds.

POLICY ISSUES: Should the Board enter into a new water right services contract with the Bureau for federal fiscal years 1998/99 through 2002/03 in the amount of $1,150,000.

FISCAL IMPACT: The proposed $1,150,000 contract with the U. S. Bureau of Reclamation will provide anticipated income in reimbursement for water right services provided by the Board.

STAFF RECOMMENDATION: Staff recommends adoption of the proposed resolution.

DRAFT

WHEREAS:

1. The existing Cooperative Agreement (Contract/Document Number 3-FC-20-11310) providing for reimbursement to the Board by the U. S. Bureau of Reclamation for water right services will expire September 30, 1998.

2. The Bureau has proposed a new Cooperative Agreement (five year contract) continuing the existing accounting arrangements.

3. The Board desires to continue to provide water right services to the U. S. Bureau of Reclamation by contractual reimbursement.

4. The proposed Cooperative Agreement (contract) will cover federal fiscal years 1998/99 through 2002/03 (5 years) and provide a cumulative contract amount of up to $1,150,000.

THEREFORE BE IT RESOLVED:

The Board authorize the Executive Director to execute the U.S. Bureau of Reclamation Application for Federal Assistance (SF 424) forms to initiate the contract to provide reimbursement to the Board for water right services to the U. S. Bureau of Reclamation in the amount of $1,150,000 for federal fiscal years of 1998/99 through 2002/03.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on

Maureen Marche

Administrative Assistant to the Board