COUNCIL COMMUNICATION

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1 Lake Havasu City COUNCIL COMMUNICATION CCNO.: MEETING DATE: TYPE OF MEETING: 8 2/19/13 Regular TO: FROM: SUBJECT: COUNCIL GOAL: SUMMARY: Honorable Mayor and Council Gary Parsons, Operations Director Resolution Approving and Ratifying Execution of Revision 1 to Contract No W0039 Amendment No. 2 Mainstream Water Entitlement for Lake Havasu City's Contract Service Area between City and Bureau of Reclamation I #7 First Class Resort Development. VRE English Village, LLC (VRE), developer of the proposed English Village Landing project is in the last stages of purchasing 12.7 acre-feet of fourth priority Colorado River water from Arizona Recreational Facilities, LLC (ARF). This purchase is to compensate for increased evaporation loss of Lake Havasu resulting from the creation of a 1. 7 acre marina on the east side of the Bridgewater Channel. The Bureau of Reclamation and Arizona Department of Water Resources (ADWR) have tentatively approved the transfer, contingent on escrow closure under the water purchase agreement between VRE and ARF, on ratification from all parties of the execution of Contract No. 07-XX-30-W0517 Partial Assignment and Transfer No. 2 of Colorado River Water from ARF to Lake Havasu City, and on ratification of Revision 1 to Contract No W0039 Amendment No. 2 Mainstream Water Entitlement for Lake Havasu City's Contract Service Area between City and Bureau of Reclamation. This City Council action is requesting approval of Resolution to ratify the execution of Revision 1 to Contract No W0039 Amendment No. 2 Mainstream Water Entitlement for Lake Havasu City's Contract Service Area between City and Bureau of Reclamation. FISCAL IMPACT: ATTACHMENTS: None Resolution No Revision 1 to Contract No W0039 Amendment No. 2 Mainstream Water Entitlement for Lake Havasu City's Contract Service Area between City and Bureau of Reclamation. CC-1 Rev. 1/5/2010 J/ CITY MANAGER'S REVIEW

2 COUNCIL COMMUNICATION PAGE: 2 of 2 RECOMMENDATION: SUGGESTED MOTION: Staff recommends that City Council adopt Resolution No approving and ratifying the Mayor's execution of Revision 1 to Contract No W0039 Amendment No. 2 Mainstream Water Entitlement for Lake Havasu City's Contract Service Area between Lake Havasu City and Bureau of Reclamation. I move to adopt Resolution No approving and ratifying the Mayor's execution of Revision 1 to Contract No W0039 Amendment No. 2 Mainstream Water Entitlement for Lake Havasu City's Contract Service Area between Lake Havasu City and Bureau of Reclamation.

3 RESOLUTION NO A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF LAKE HAVASU CITY, MOHAVE COUNTY, ARIZONA, APPROVING AND RATIFYING THE MAYOR'S EXECUTION OF REVISION 1 TO CONTRACT NO W0039 AMENDMENT NO.2 MAINSTREAM WATER ENTITLEMENT FOR LAKE HAVASU CITY'S CONTRACT SERVICE AREA WITH THE BUREAU OF RECLAMATION WHEREAS, Lake Havasu City is authorized to enter into the agreement revision pursuant to Arizona Revised Statutes ; and WHEREAS, it is necessary for Lake Havasu City to revise its contract service area to facilitate the transfer of 12.7 acre-feet of Colorado River water from Arizona Recreational Facilities to the City for the proposed marina project in the Bridgewater Channel; and WHEREAS, the contract for the transfer of 12.7 acre-feet of Colorado River water is valid only upon the execution of this Revision 1 to Contract No W0039 Amendment No.2. NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Council of Lake Havasu City, Arizona, approve and ratify the Mayor's execution of the Revision 1 to Contract No W0039 Amendment No.2 Mainstream Water Entitlement for Lake Havasu City's Contract Service Area between City and Bureau of Reclamation. PASSED AND ADOPTED by the Mayor and City Council of Lake Havasu City, Arizona, this 19thday of February, APPROVED: ATTEST: Mark S. Nexsen, Mayor Kelly Williams, City Clerk APPROVED AS TO FORM: ~Q_QJL,~a~ ell Garry, CityAttOneY\

4 Exhibit B - Revision 1 Contract No W0039 Amendment No. 2 LHC MAINSTREAM WATER ENTITLEMENT FOR LAKE HAVASU CITY's (LHC) CONTRACTSERWCEAREA 1. This Exhibit B, made this day of, 2013, to be effective under and as a part of Contract No W0039, Amendment No. 2 (Contract) hereinafter called "Exhibit B," shall become effective on the date of the Exhibit B's execution, shall supersede and replace the initial Exhibit B dated October 4, 1995, and shall remain in effect until superseded by another Exhibit B executed by the Parties; Provided, That this Exhibit B or any superseding Exhibit B shall terminate with termination of the Contract. 2. Contract No. 07-XX-30-W0517, Partial Assignment and Transfer No. 2 (Partial Assignment and Transfer No.2) assigned and transferred 12.7 acre-feet per year of ARF's Arizona fourth priority Colorado River water entitlement under Contract No. 07-XX-30-W0517, as amended, to LHC under the Contract which was approved by the United States. 3. The initial Exhibit B of the Contract is being revised to increase LHC's entitlement by 12.7 acre-feet per year from 19,180 acre-feet per year to 19,192.7 acre-feet per year to conform to Partial Assignment and Transfer No LHC has the following Entitlement to the diversion of Mainstream Water for beneficial Domestic Use within the LHC Contract Service Area. The following table lists the type of water use, contract date, priority within the State of Arizona, and the annual Entitlement diversion amount in acre-feet. Exhibit B - Revision 1 - Page 1

5 November 14, 1968 Fourth Priority 14,500 Entitlement to Lake Havasu Irrigation and Drainage District January 31, 1983 Fourth Priority 12.7 Additional Entitlement for English Village Landing Development September 29, 1983 Fourth Priority 131 Additional Entitlement for Anasazi Pueblo, Inc. Domestic September 29, 1983 Fourth Priority 170 Additional Entitlement for Horizon Six Improvement District October 21, 1987 Fourth Priority 30 Additional Entitlement for Sunset Mobile Home Park October 4, 1995 Fourth Priority 4,349 Additional Entitlement recommended by ADWR in a letter dated February 28, 1990 October 4, 1995 Fifth Priority Unused Arizona Entitlement, when the Contracting Officer determines it is available October 4, 1995 Sixth Priority Surplus Apportionment Water, when the Contracting Officer determines it is available 5. The point of diversion as shown on the map titled Attachment 2 to the Partial Assignment and Transfer No. 2 as attached hereto is hereby approved by the Contracting Officer and in accordance with Exhibit C - Revision 1 to the Contract is attached to Exhibit C - Revision 1 and deemed part of Exhibit C - Revision 1. There is no point of return. Exhibit B - Revision 1 - Page 2

6 6. Except as expressly amended by this Exhibit B - Revision 1, all other provisions of the Contract remain the same. IN WITNESS WHEREOF, the Parties have executed this Exhibit B - Revision 1 to Contract No W0039, Amendment No. 2 the day and year first above written. Approved for Legal Sufficiency: THE UNITED STATES OF AMERICA By: Phoenix, Arizona By: Regional Director Lower Colorado Region Bureau of Reclamation ATTEST: CITY OF LAKE HAVASU CITY, ARIZONA By: Exhibit B - Revision 1 -Page 3

7 Attachment 2 Contract No W0039 Amendment 2 - Pari of Exhibit C. Revision I Lake Havasu City Partial Assignment and Transfer# 2

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