M&I Only 

R. O. Final Draft 10/25-2004 

Contract No. 

14-06-200-5082A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

PLACER COUNTY WATER AGENCY

PROVIDING FOR PROJECT WATER SERVICE

FROM THE AMERICAN RIVER DIVISION

Table of Contents

Article No. Title Page No.

Preamble ..................................................................................................................1 

Explanatory Recitals ............................................................................................ 1-5 

1 Definitions............................................................................................................ 5-8 

2 Term of Contract.................................................................................................. 8-9 

3 Water to be Made Available and Delivered to the Contractor......................... 10-14 

4 Time for Delivery of Water ............................................................................. 14-15 

5 Point of Diversion and Responsibility for Distribution of Water.................... 15-16 

6 Measurement of Water Within the Service Area............................................. 16-18 

7 Rates and Method of Payment for Water......................................................... 18-23 

8 Omitted ..................................................................................................................23 

9 Sales, Transfers, or Exchanges of Water ......................................................... 23-25 

10 Application of Payments and Adjustments............................................................25 

11 Temporary Reductions--Return Flows ..................................................................26 

12 Constraints on the Availability of Water ......................................................... 26-27 

13 Omitted ..................................................................................................................27 

14 Rules and Regulations............................................................................................27 

15 Water and Air Pollution Control............................................................................27 

16 Quality of Water ....................................................................................................28 

17 Water Acquired by the Contractor Other Than From the United States.......... 28-30 

18 Opinions and Determinations ................................................................................30 

19 Coordination and Cooperation......................................................................... 30-32 

20 Charges for Delinquent Payments .........................................................................32 
Contract No.14-06-200-5082A-LTR1 

Table of Contents - continued

Article No. Title Page No.

21 Equal Opportunity............................................................................................ 32-33 

22 General Obligation--Benefits Conditioned Upon Payment ...................................34 

23 Compliance With Civil Rights Laws and Regulations ..........................................34 

24 Omitted ..................................................................................................................34 

25 Contractor to Pay Certain Miscellaneous Costs.....................................................35 

26 Water Conservation ......................................................................................... 35-36 

27 Existing or Acquired Water or Water Rights.........................................................36 

28 Omitted ..................................................................................................................37 

29 Contingent on Appropriation or Allotment of Funds ............................................37 

30 Books, Records, and Reports.................................................................................37 

31 Assignment Limited--Successors and Assigns Obligated .....................................37 

32 Severability ............................................................................................................38 

33 Resolution of Disputes...........................................................................................38 

34 Officials Not to Benefit..........................................................................................39 

35 Changes in Contractor's Service Area ...................................................................39 

36 Federal Laws..........................................................................................................39 

37 Notices ...................................................................................................................40

38 Confirmation of Contract.......................................................................................40 

Signature Page .......................................................................................................41 

Exhibit A - Map of Contractor’s Service Area 

Exhibit B - Rates and Charges 
R. O. Final Draft 10/25-2004 

Contract No. 

14-06-200-5082A-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

6 AND

7 PLACER COUNTY WATER AGENCY

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM AMERICAN RIVER DIVISION

10 THIS CONTRACT, made this _____ day of ____________________, 20____, in 

11 pursuance generally of the Act of June 17, 1902 (32 Stat. 388), and acts amendatory or 

12 supplementary thereto, including, but not limited to, the Acts of August 26, 1937 (50 Stat. 844), 

13 as amended and supplemented, August 4, 1939 (53 Stat. 1187), as amended and supplemented, 

14 July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), 

15 October 27, 1986 (100 Stat. 3050), as amended, and Title XXXIV of the Act of October 30, 1992 

16 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law, between 

17 THE UNITED STATES OF AMERICA, hereinafter referred to as the United States, and 

18 PLACER COUNTY WATER AGENCY, hereinafter referred to as the Contractor, a public 

19 agency of the State of California, duly organized, existing, and acting pursuant to the laws 

20 thereof; 

21 WITNESSETH, That: 

22 EXPLANATORY RECITALS

 [1st 23 ] WHEREAS, the United States has constructed and is operating the Central Valley 

24 Project (Project), California, for diversion, storage, carriage, distribution and beneficial use, for 

25 flood control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection 
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26 and restoration, generation and distribution of electric energy, salinity control, navigation and 

27 other beneficial uses, of waters of the Sacramento River, the American River, the Trinity River, 

28 and the San Joaquin River and their tributaries; and 

 [2nd 29 ] WHEREAS, the United States constructed Folsom Dam and Reservoir, 

30 hereinafter collectively referred to as the American River facilities, which will be used in part for 

31 the furnishing of water to the Contractor pursuant to the terms of this Contract; and 

32 [2.1] WHEREAS, the Auburn Dam and Reservoir proposed to be constructed by the 

33 United States as a Unit of the Central Valley Project has to date, not been constructed; and 

 [3rd 34 ] WHEREAS, the rights to Project Water were acquired by the United States 

35 pursuant to California law for operation of the Project; and 

 [4th 36 ] WHEREAS, the Contractor and the United States entered into Contract 

37 No. 14-06-200-5082A, dated September 18, 1970, as amended July 8, 1992, which established 

38 terms for the delivery to the Contractor of Project Water from the Auburn Reservoir or other 

39 mutually agreeable locations and also recognized the Contractor’s right to certain flows of the 

40 American River authorized by permits issued by the California State Water Right Control Board 

41 which is now called the State Water Resources Control Board (SWRCB); and 

42 [4.1] WHEREAS, Contract No. 14-06-200-5082A, as amended, was superseded by 

43 Amendatory Contract No. 14-06-200-5082A on February 26, 2002, to, among other things, 

44 redesignate points of diversion and eliminate the minimum payment provisions currently 

45 included in the contract and reduce the annual amount of Project Water to be made available 

46 from 117,000 acre-feet to 35,000 acre-feet; and 

47 [4.2] WHEREAS, Amendatory Contract No. 14-06-200-5082A was further amended 

48 on August 27, 2002, to provide for a potential point of diversion on the Sacramento River, and to 

49 provide for a potential increase in the annual quantity provided under this contract to an amount 

50 in excess of 35,000 acre-feet; and 
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51 [4.3] WHEREAS, Amendatory Contract No. 14-06-200-5082A, dated February 26, 

52 2002, as amended on August 27, 2002, is hereinafter referred to as the Existing Contract; and 

 [5th 53 ] Omitted; and 

 [6th 54 ] WHEREAS, Section 3404(c) of the Central Valley Project Inprovement Act 

55 (CVPIA) provides for long-term renewal of Existing Contracts following completion of 

56 appropriate environmental documentation, including a programmatic environmental impact 

57 statement (PEIS) pursuant to the National Environmental Policy Act (NEPA) analyzing the 

58 direct and indirect impacts and benefits of implementing the CVPIA and the potential renewal of 

59 all existing contracts for Project Water; and 

 [7th 60 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

61 environmental review necessary to provide for long-term renewal of the Existing Contract; and 

 [8th 62 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

63 Contract, pursuant to the terms of the Existing Contract, Federal Reclamation law, and the laws 

64 of the State of California, for water service from the Project; and 

 [9th 65 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

66 of its obligations under the Existing Contract; and 

 [10th 67 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

68 Contracting Officer that the Contractor has projected future demand for water use such that the 

69 Contractor has the capability and expects to utilize fully for reasonable and beneficial use the 

70 quantity of Project Water to be made available to it pursuant to this Contract; and 

 [11th 71 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

72 agricultural areas within California for more than 50 years, and is considered by the Contractor 

73 as an essential portion of its water supply; and 

 [12th 74 ] WHEREAS, the economies of regions within the Project, including the 

75 Contractor’s, depend upon the continued availability of water, including water service from the 

76 Project; and 
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 [13th 77 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

78 partnerships to pursue measures to improve water supply, water quality, and reliability of the 

79 Project for all Project purposes; and 

 [14th 80 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

81 provide for reliable Project Water supplies; to control costs of those supplies; to achieve 

82 repayment of the Project as required by law; to guard reasonably against Project Water 

83 shortages; to achieve a reasonable balance among competing demands for use of Project Water; 

84 and to comply with all applicable environmental statutes, all consistent with the legal obligations 

85 of the United States relative to the Project; and 

 [15th 86 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

87 relationship in order to achieve their mutual goals; and 

88 [15.1] WHEREAS, the Contractor is a signatory to the Water Forum Agreement, dated 

89 April 2000, which has the co-equal objectives to (1) provide a reliable and safe water supply for 

90 the Sacramento region’s economic health and planned development through the year 2030, and 

91 (2) preserve the fishery, wildlife, recreational and aesthetic values of the lower American River; 

92 and 

93 [15.2] WHEREAS, the Contracting Officer is in support of the co-equal objectives of the 

94 Water Forum Agreement and intends to work cooperatively with the Contractor to investigate 

95 actions that they could take to implement the objectives of the Water Forum Agreement, which, 

96 if agreed to, would be the subject of a separate agreement between them; and 

 [16th 97 ] WHEREAS, the contract between the United States and the Contractor dated 

98 February 20, 1963, relating to the operation of the Contractor’s Middle Fork American River 

99 Project Reservoirs is still in full force and effect and is not affected by the terms and conditions 

100 of this Contract; and 

 [17th 101 ] WHEREAS, the United States and the Contractor are willing to enter into this 

102 Contract pursuant to Federal Reclamation law on the terms and conditions set forth below; 
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103 NOW, THEREFORE, in consideration of the mutual and dependent covenants herein 

104 contained, it is hereby mutually agreed by the parties hereto as follows: 

105 DEFINITIONS

106 1. When used herein unless otherwise distinctly expressed, or manifestly 

107 incompatible with the intent of the parties as expressed in this Contract, the term: 

108 (a) “Calendar Year” shall mean the period January 1 through December 31, 

109 both dates inclusive; 

110 (b) “Charges” shall mean the payments required by Federal Reclamation law 

111 in addition to the Rates and Tiered Pricing Component specified in this Contract as determined 

112 annually by the Contracting Officer pursuant to this Contract; 

113 (c) “Condition of Shortage” shall mean a condition respecting the Project 

114 during any Year such that the Contracting Officer is unable to deliver sufficient water to meet the 

115 Contract Total; 

116 (d) “Contracting Officer” shall mean the Secretary of the Interior’s duly 

117 authorized representative acting pursuant to this Contract or applicable Federal Reclamation law 

118 or regulation; 

119 (e) “Contract Total” shall mean the maximum amount of water to which the 

120 Contractor is entitled under subdivision (a) of Article 3 of this Contract; 

121 (f) “Contractor's Service Area" shall mean the area to which the Contractor is 

122 permitted to provide Project Water under this Contract as described in Exhibit “A” attached 

123 hereto, which may be modified from time to time in accordance with Article 35 of this Contract 

124 without amendment of this Contract; 

125 (g) “CVPIA” shall mean the Central Valley Project Improvement Act, Title 

126 XXXIV of the Act of October 30, 1992 (106 Stat. 4706); 
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127 (g.1) “Diversion Water” shall mean water to which the Contractor has acquired 

128 rights under Permit Nos. 13855, 13856, 13857, and 13858 issued by the California State Water 

129 Rights Board, now referred to as the State Water Resources Control Board; 

130 (h-i) Omitted; 

131 (j) “Full Cost Rate” shall mean an annual rate, as determined by the 

132 Contracting Officer that shall amortize the expenditures for construction properly allocable to the 

133 Project Irrigation or M&I functions, as appropriate, of facilities in service including all O&M 

134 deficits funded, less payments, over such periods as may be required under Federal Reclamation 

135 law, or applicable contract provisions. Interest will accrue on both the construction expenditures 

136 and funded O&M deficits from October 12, 1982, on costs outstanding at that date, or from the 

137 date incurred in the case of costs arising subsequent to October 12, 1982, and shall be calculated 

138 in accordance with subsections 202(3)(B) and (3)(C) of the Reclamation Reform Act of 

139 October 12, 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA. The Full-Cost 

140 Rate includes actual operation, maintenance, and replacement costs consistent with Section 426.2 

141 of the Rules and Regulations for the RRA; 

142 (k-l) Omitted; 

143 (m) “Irrigation Water” shall mean water made available from the Project that 

144 is used primarily in the production of agricultural crops or livestock, including domestic use 

145 incidental thereto, and watering of livestock; 

146 (n) Omitted; 

147 (o) “Municipal and Industrial (M&I) Water” shall mean Project Water, other 

148 than Irrigation Water, made available to the Contractor. M&I Water shall include water used for 

149 human use and purposes such as the watering of landscaping or pasture for animals (e.g., horses) 

150 which are kept for personal enjoyment or water delivered to land holdings operated in units of 

151 less than five acres unless the Contractor establishes to the satisfaction of the Contracting Officer 
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152 that the use of water delivered to any such landholding is a use described in subdivision (m) of 

153 this Article; 

154 (p) “M&I Full Cost Water Rate” shall mean the Full Cost Rate applicable to 

155 the delivery of M&I Water; 

156 (q) “Operation and Maintenance” or “O&M" shall mean normal and 

157 reasonable care, control, operation, repair, replacement (other than capital replacement), and 

158 maintenance of Project facilities; 

159 (r) Omitted; 

160 (s) “Project” shall mean the Central Valley Project owned by the United 

161 States and managed by the Department of the Interior, Bureau of Reclamation; 

162 (t) “Project Contractors” shall mean all parties who have water service 

163 contracts for Project Water from the Project with the United States pursuant to Federal 

164 Reclamation law; 

165 (u) “Project Water” shall mean all water that is developed, diverted, stored, or 

166 delivered by the Secretary in accordance with the statutes authorizing the Project and in 

167 accordance with the terms and conditions of water rights acquired pursuant to California law; 

168 (v) “Rates” shall mean the payments determined annually by the Contracting 

169 Officer in accordance with the then-current applicable water ratesetting policies for the Project, 

170 as described in subdivision (a) of Article 7 of this Contract; 

171 (w) “Recent Historic Average” shall mean the most recent five-year average of 

172 the final forecast of Water Made Available to the Contractor pursuant to this Contract or its 

173 preceding contract(s); 

174 (x) “Secretary” shall mean the Secretary of the Interior, a duly appointed 

175 successor, or an authorized representative acting pursuant to any authority of the Secretary and 

176 through any agency of the Department of the Interior; 
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177 (y) “Tiered Pricing Component” shall be the incremental amount to be paid 

178 for each acre-foot of Water Delivered as described in subdivision (j) of Article 7 of this Contract; 

179 (z) “Water Delivered” or “Delivered Water” shall mean Project Water 

180 diverted for use by the Contractor at the point(s) of delivery approved by the Contracting 

181 Officer; 

182 (aa) “Water Made Available” shall mean the estimated amount of Project 

183 Water that can be delivered to the Contractor for the upcoming Year as declared by the 

184 Contracting Officer, pursuant to subdivision (a) of Article 4 of this Contract; 

185 (bb) “Water Scheduled” shall mean Water Made Available to the Contractor 

186 for which times and quantities for delivery have been established by the Contractor and 

187 Contracting Officer, pursuant to subdivision (b) of Article 4 of this Contract; and 

188 (cc) "Year" shall mean the period from and including March 1 of each 

189 Calendar Year through the last day of February of the following Calendar Year. 

190 TERM OF CONTRACT

191 2. (a) This Contract shall be effective March 1, 2005, through February 28, 

192 2045, and supersedes the Existing Contract. In the event the Contractor wishes to renew this 

193 Contract beyond February 28, 2045, the Contractor shall submit a request for renewal in writing 

194 to the Contracting Officer no later than two years prior to the date this Contract expires. 

195 (b) Omitted. 

196 (c) This Contract shall be renewed for successive periods of up to 40 years 

197 each, which periods shall be consistent with the then-existing Reclamation-wide policy, under 

198 terms and conditions mutually agreeable to the parties and consistent with Federal and State law. 

199 The Contractor shall be afforded the opportunity to comment to the Contracting Officer on the 

200 proposed adoption and application of any revised policy applicable to the delivery of M&I Water 

201 that would limit the term of any subsequent renewal contract with the Contractor for the 

202 furnishing of M&I Water to less than 40 years. 

Deleted: 4
Contract No. 14-06-200-5082A-LTR1 

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203 (d) The Contracting Officer shall make a determination ten years after the 

204 date of execution of this Contract, and every five years thereafter during the term of this 

205 Contract, of whether a conversion of this Contract to a contract under subsection 9(c)(1) of the 

206 Reclamation Project Act of 1939 can be accomplished. The Contracting Officer anticipates that 

207 during the term of this Contract, all authorized Project construction expected to occur will have 

208 occurred, and on that basis the Contracting Officer agrees upon such completion to allocate all 

209 costs that are properly assignable to the Contractor, and agrees further that, at any time after such 

210 allocation is made, and subject to satisfaction of the conditions set out in this subdivision , this 

211 Contract shall, at the request of the Contractor, be converted to a contract under subsection 

212 9(c)(1) of Section 9, of the Reclamation Project Act of 1939, subject to applicable Federal law 

213 and under stated terms and conditions mutually agreeable to the Contractor and the Contracting 

214 Officer. A condition for such conversion to occur shall be a determination by the Contracting 

215 Officer that, account being taken of the amount credited to return by the Contractor as provided 

216 for under Federal Reclamation law, the remaining amount of construction costs assignable for 

217 ultimate return by the Contractor can probably be repaid to the United States within the term of a 

218 contract under subsection 9(c)(1). If the remaining amount of costs that are properly assignable 

219 to the Contractor cannot be determined during the term of this Contract, the Contracting Officer 

220 shall notify the Contractor, and provide the reason(s) why such a determination could not be 

221 made. Further, the Contracting Officer shall make such a determination as soon thereafter as 

222 possible so as to permit, upon request of the Contractor and satisfaction of the conditions set out 

223 above, conversion to a contract under said subsection 9(c)(1). In the event such determination of 

224 costs has not been made at a time which allows conversion of this Contract during the term of 

225 this Contract or the Contractor has not requested conversion of this Contract within such term, 

226 the parties shall incorporate in any subsequent renewal contract as described in subdivision (c) of 

227 this Article a provision that carries forth in substantially identical terms the provisions of this 

228 subdivision (d). 
Contract No. 14-06-200-5082A-LTR1 

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229 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

230 3. (a) During each Year, consistent with all applicable State water rights, 

231 permits, and licenses, Federal law, and subject to the provisions set forth in Articles 11 and 12 of 

232 this Contract, the Contracting Officer shall make available for delivery to the Contractor 35,000 

233 acre-feet of Project Water for M&I purposes. If agreed to by the Contracting Officer and the 

234 Contractor, the 35,000 acre-feet may be increased in any renewal or amendment of this Contract 

235 (i) if and when a point of diversion for Project Water is established on the Sacramento River as 

236 described in Article 5(a); and, (ii) if and when the proposed Auburn Dam is fully completed, the 

237 United States obtains the necessary water rights for the Auburn Project, and such action 

238 continues to be consistent with Federal and State law. The Contracting Officer agrees to 

239 recognize the relevant historic relationship with the Contractor relative to water supplies 

240 contemplated from Auburn Reservoir in determining such increased amount. Water Delivered to 

241 the Contractor in accordance with this subdivision shall be scheduled and paid for pursuant to the 

242 provisions of Articles 4 and 7 of this Contract. 

243 (1) The Contracting Officer recognizes that the Contractor has a right 

244 to Diversion Water from the American River in the amount of 120,000 acre-feet in any Year said 

245 water is available. Said Diversion Water is in addition to the Project Water made available 

246 pursuant to this Contract. The quantities of Diversion Water to which the Contractor is entitled 

247 and which are not taken or otherwise disposed of by the Contractor during that Year shall 

248 become the property of the United States. 

249 (2) The quantity of Diversion Water specified in Article 3(a)(1) above, 

250 is contingent upon the right of the Contractor to continue to take said quantity of water annually 

251 pursuant to California law. In the event that under such law the Contractor’s right to take 

252 Diversion Water is less than the amount specified in Article 3(a)(1) above, the amount of 

253 Diversion Water which the Contracting Officer will recognize under this Contract shall be 

254 reduced accordingly. 
Contract No. 14-06-200-5082A-LTR1 

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255 (b) Because the capacity of the Project to deliver Project Water has been 

256 constrained in recent years and may be constrained in the future due to many factors including 

257 hydrologic conditions and implementation of Federal and State laws, the likelihood of the 

258 Contractor actually receiving the amount of Project Water set out in subdivision (a) of this 

259 Article in any given Year is uncertain. The Contracting Officer’s modeling referenced in the 

260 PEIS projected that the Contract Total set forth in this Contract will not be available to the 

261 Contractor in many years. During the most recent five years, the Recent Historic Average of 

262 water made available to the Contractor was 32,000 acre-feet. Nothing in subdivision (b) of this 

263 Article shall affect the rights and obligations of the parties under any provision of this Contract. 

264 (c) The Contractor shall utilize the Project Water in accordance with all 

265 applicable legal requirements. 

266 (d) The Contractor shall make reasonable and beneficial use of all Project 

267 water furnished pursuant to this Contract. Groundwater recharge programs (direct, indirect, or in 

268 lieu), groundwater banking programs, surface water storage programs, and other similar 

269 programs utilizing Project Water or other water furnished pursuant to this Contract conducted 

270 within the Contractor’s Service Area which are consistent with applicable State law and result in 

271 use consistent with Federal Reclamation law will be allowed; Provided, That any direct recharge 

272 program(s) is (are) described in the Contractor’s water conservation plan submitted pursuant to 

273 Article 26 of this Contract; Provided, further, That such water conservation plan demonstrates 

274 sufficient lawful uses exist in the Contractor’s Service Area so that using a long-term average, 

275 the quantity of Delivered Water is demonstrated to be reasonable for such uses and in 

276 compliance with Federal Reclamation law. Groundwater recharge programs, groundwater 

277 banking programs, surface water storage programs, and other similar programs utilizing Project 

278 Water or other water furnished pursuant to this Contract conducted outside the Contractor’s 

279 Service Area may be permitted upon written approval of the Contracting Officer, which approval 

280 will be based upon environmental documentation, Project Water rights, and Project operational 
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281 concerns. The Contracting Officer will address such concerns in regulations, policies, or 

282 guidelines. 

283 (e) The Contractor shall comply with requirements applicable to the 

284 Contractor in biological opinion(s) prepared as a result of a consultation regarding the execution 

285 of this Contract undertaken pursuant to Section 7 of the Endangered Species Act of 1973 (ESA), 

286 as amended, that are within the Contractor’s legal authority to implement. Nothing herein shall 

287 be construed to prevent the Contractor from challenging or seeking judicial relief in a court of 

288 competent jurisdiction with respect to any biological opinion or other environmental 

289 documentation referred to in this Article. 

290 (f) Following the declaration of Water Made Available under Article 4 of this 

291 Contract, the Contracting Officer will make a determination whether Project Water, or other 

292 water available to the Project, can be made available to the Contractor in addition to the Contract 

293 Total under Article 3 of this Contract during the Year without adversely impacting other Project 

294 Contractors. At the request of the Contractor, the Contracting Officer will consult with the 

295 Contractor prior to making such a determination. If the Contracting Officer determines that 

296 Project Water, or other water available to the Project, can be made available to the Contractor, 

297 the Contracting Officer will announce the availability of such water and shall so notify the 

298 Contractor as soon as practical. The Contracting Officer will thereafter meet with the Contractor 

299 and other Project Contractors capable of taking such water to determine the most equitable and 

300 efficient allocation of such water. If the Contractor requests the delivery of any quantity of such 

301 water, the Contracting Officer shall make such water available to the Contractor in accordance 

302 with applicable statutes, regulations, guidelines, and policies. Subject to existing long-term 

303 contractual commitments, water rights and operational constraints, long-term Project Contractors 

304 shall have a first right to acquire such water, including Project Water made available pursuant to 

305 Section 215 of the RRA 
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306 (g) The Contractor may request permission to reschedule for use during the 

307 subsequent Year some or all of the Water Made Available to the Contractor during the current 

308 Year referred to as “carryover.” The Contractor may request permission to use during the 

309 current Year a quantity of Project Water which may be made available by the United States to 

310 the Contractor during the subsequent Year referred to as “preuse.” The Contracting Officer’s 

311 written approval may permit such uses in accordance with applicable statutes, regulations, 

312 guidelines, and policies. 

313 (h) The Contractor’s right pursuant to Federal Reclamation law and applicable 

314 State law to the reasonable and beneficial use of Water Delivered pursuant to this Contract 

315 during the term thereof and any subsequent renewal contracts, as described in Article 2 of this 

316 Contract, during the terms thereof shall not be disturbed so long as the Contractor shall fulfill all 

317 of its obligations under this Contract and any renewals thereof. Nothing in the preceding 

318 sentence shall affect the Contracting Officer’s ability to impose shortages under Article 11 or 

319 subdivision (b) of Article 12 of this Contract or applicable provisions of any subsequent renewal 

320 contracts. 

321 (i) Project Water furnished to the Contractor pursuant to this Contract may be 

322 delivered for purposes other than those described in subdivisions (m) and (o) of Article 1 of this 

323 Contract upon written approval by the Contracting Officer in accordance with the terms and 

324 conditions of such approval. 

325 (j) The Contracting Officer shall make reasonable efforts to protect the water 

326 rights necessary for the Project and to provide the water available under this Contract. The 

327 Contracting Officer shall not object to participation by the Contractor, in the capacity and to the 

328 extent permitted by law, in administrative proceedings related to the Project Water rights; 

329 Provided, That the Contracting Officer retains the right to object to the substance of the 

330 Contractor’s position in such a proceeding; Provided further, That in such proceedings the 
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331 Contracting Officer shall recognize the Contractor has a legal right under the terms of this 

332 Contract to use Project Water. 

333 TIME FOR DELIVERY OF WATER

334 (4) (a) On or about February 20 of each Calendar Year, the Contracting Officer 

335 shall announce the Contracting Officer’s expected declaration of the Water Made Available. 

336 Such declaration will be expressed in terms of both Water Made Available and the Recent 

337 Historic Average and will be updated monthly, and more frequently if necessary, based on 

338 then-current operational and hydrologic conditions and a new declaration with changes, if any, to 

339 the Water Made Available will be made. The Contracting Officer shall provide forecasts of 

340 Project operations and the basis of the estimate, with relevant supporting information, upon the 

341 written request of the Contractor. Concurrently with the declaration of the Water Made 

342 Available, the Contracting Officer shall provide the Contractor with the updated Recent Historic 

343 Average. 

344 (b) On or before each March 1 and at such other times as necessary, the 

345 Contractor shall submit to the Contracting Officer a written schedule, satisfactory to the 

346 Contracting Officer, showing the monthly quantities of Project Water to be delivered by the 

347 United States to the Contractor pursuant to this Contract for the Year commencing on such 

348 March 1. The Contracting Officer shall use all reasonable means to deliver Project Water 

349 according to the approved schedule for the Year commencing on such March 1. 

350 (c) The Contractor shall not schedule Project Water in excess of the quantity 

351 of Project Water the Contractor intends to put to reasonable and beneficial use within the 

352 Contractor's Service Area or to sell, transfer, or exchange pursuant to Article 9 of this Contract 

353 during any Year. 

354 (d) Subject to the conditions set forth in subdivision (a) of Article 3 of this 

355 Contract, the United States shall deliver Project Water to the Contractor in accordance with the 

356 initial schedule submitted by the Contractor pursuant to subdivision (b) of this Article, or any 
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357 written revision(s), satisfactory to the Contracting Officer, thereto submitted within a reasonable 

358 time prior to the date(s) on which the requested change(s) is/are to be implemented. 

359 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

360 5. (a) Project Water scheduled pursuant to subdivision (b) of Article 4 of this 

361 Contract shall be delivered to the Contractor at Folsom Dam and any additional point or points of 

362 delivery either on Project facilities or another location or locations mutually agreed to in writing 

363 by the Contracting Officer and the Contractor, including a potential point of delivery on the 

364 Sacramento River north of the American River. The parties acknowledge that the potential 

365 Sacramento River point of delivery may be at a point that, as of the date of this Contract, is not 

366 included as an authorized point of delivery under the water right permits of the Project. Project 

367 Water will not be delivered to this point of delivery unless and until such point is added to the 

368 water right permits of the Project. Upon request of the Contractor, the Contracting Officer shall 

369 petition the California State Water Resources Control Board to include the necessary point of 

370 delivery to the water rights for the Project, and the Contractor shall cooperate with and assist the 

371 Contracting Officer in prosecuting such petition in a timely manner. The Contracting Officer 

372 shall bear neither responsibility nor liability for existing and/or future-constructed non-Federal 

373 diversion or delivery facilities or the use thereof. 

374 (1) The parties hereby acknowledge execution of the Stipulated 

375 Agreement dated September 8, 1998, recognizing the agreement by the United States, Bureau of 

376 Reclamation, subject to certain conditions, to dismiss protests to the Contractor’s petition to 

377 expand the place of use under the Contractor’s water right permits. 

378 (b) Omitted. 

379 (c) The Contractor shall not deliver Project Water to land outside the 

380 Contractor's Service Area unless approved in advance by the Contracting Officer. 

381 (d) All Water Delivered to the Contractor pursuant to this Contract shall be 

382 measured and recorded with equipment furnished, installed, operated, and maintained by the 
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383 United States or other appropriate entity as designated by the Contracting Officer at the point or 

384 points of delivery established pursuant to subdivision (a) of this Article. Upon the request of 

385 either party to this Contract, the Contracting Officer shall investigate the accuracy of such 

386 measurements and shall take any necessary steps to adjust any errors appearing therein. For any 

387 period of time when accurate measurements have not been made, the Contracting Officer shall 

388 consult with the Contractor prior to making a final determination of the quantity delivered for 

389 that period of time. 

390 (e) The Contracting Officer shall not be responsible for the control, carriage, 

391 handling, use, disposal, or distribution of Water Delivered to the Contractor pursuant to this 

392 Contract beyond the delivery points specified in subdivision (a) of this Article. The Contractor 

393 shall indemnify the United States, its officers, employees, agents, and assigns on account of 

394 damage or claim of damage of any nature whatsoever for which there is legal responsibility, 

395 including property damage, personal injury, or death arising out of or connected with the control, 

396 carriage, handling, use, disposal, or distribution of such Water Delivered beyond such delivery 

397 points, except for any damage or claim arising out of: (i) acts or omissions of the Contracting 

398 Officer or any of its officers, employees, agents, or assigns with the intent of creating the 

399 situation resulting in any damage or claim; (ii) willful misconduct of the Contracting Officer or 

400 any of its officers, employees, agents, or assigns; (iii) negligence of the Contracting Officer or 

401 any of its officers, employees, agents, or assigns; or (iv) damage or claims resulting from a 

402 malfunction of facilities owned and/or operated by the United States. 

403 MEASUREMENT OF WATER WITHIN THE SERVICE AREA

404 6. (a) The Contractor shall ensure that, unless the Contractor has established a 

405 measuring program satisfactory to the Contracting Officer, the Contractor shall ensure that all 

406 surface water delivered for M&I purposes is measured at each M&I service connection. The 

407 water measuring devices or water measuring methods of comparable effectiveness must be 

408 acceptable to the Contracting Officer. The Contractor shall be responsible for installing, 
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409 operating, and maintaining and repairing all such measuring devices and implementing all such 

410 water measuring methods at no cost to the United States. The Contractor shall use the 

411 information obtained from such water measuring devices or water measuring methods to ensure 

412 its proper management of the water, to bill water users for water delivered by the Contractor; 

413 and, if applicable, to record water delivered for M&I purposes by customer class as defined in 

414 the Contractor’s water conservation plan provided for in Article 26 of this Contract. Nothing 

415 herein contained, however, shall preclude the Contractor from establishing and collecting any 

416 charges, assessments, or other revenues authorized by California law. The Contractor shall 

417 include a summary of all its annual surface water deliveries in the annual report described in 

418 subdivision (c) of Article 26. 

419 (b) To the extent the information has not otherwise been provided, upon 

420 execution of this Contract, the Contractor shall provide to the Contracting Officer a written 

421 report describing the measurement devices or water measuring methods being used or to be used 

422 to implement subdivision (a) of this Article and identifying the M&I service connections or 

423 alternative measurement programs approved by the Contracting Officer, at which such 

424 measurement devices or water measuring methods are being used, and, if applicable, identifying 

425 the locations at which such devices and/or methods are not yet being used including a time 

426 schedule for implementation at such locations. The Contracting Officer shall advise the 

427 Contractor in writing within 60 days as to the adequacy of, and necessary modifications, if any, 

428 of the measuring devices or water measuring methods identified in the Contractor’s report and if 

429 the Contracting Officer does not respond in such time, they shall be deemed adequate. If the 

430 Contracting Officer notifies the Contractor that the measuring devices or methods are 

431 inadequate, the parties shall within 60 days following the Contracting Officer‘s response, 

432 negotiate in good faith the earliest practicable date by which the Contractor shall modify said 

433 measuring devices and/or measuring methods as required by the Contracting Officer to ensure 

434 compliance with subdivision (a) of this Article. 
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435 (c) All new surface water delivery systems installed within the Contractor's 

436 Service Area after the effective date of this Contract shall also comply with the measurement 

437 provisions described in subdivision (a) of this Article. 

438 (d) The Contractor shall inform the Contracting Officer and the State of 

439 California in writing by April 30 of each Year of the monthly volume of surface water delivered 

440 within the Contractor’s Service Area during the previous Year. 

 (e) The Contractor shall inform the Contracting Officer on or before the 20th 441 

442 calendar day of each month of the quantity of M&I Water taken during the preceding month. 

443 RATES AND METHOD OF PAYMENT FOR WATER

444 7. (a) The Contractor shall pay the United States as provided in this Article for 

445 all Delivered Water at Rates, Charges, and the Tiered Pricing Component established in 

446 accordance with (i) the Secretary’s then-existing ratesetting policy for M&I Water, which 

447 ratesetting policies shall be amended, modified, or superseded only through a public notice and 

448 comment procedure; (ii) applicable Federal Reclamation law and associated rules and 

449 regulations, or policies; and (iii) other applicable provisions of this Contract. Payments shall be 

450 made by cash transaction, electronic funds transfer, or any other mechanism as may be agreed to 

451 in writing by the Contractor and the Contracting Officer. The Rates, Charges, and Tiered Pricing 

452 Component applicable to the Contractor upon execution of this Contract are set forth in Exhibit 

453 “B,” as may be revised annually. 

454 (b) The Contracting Officer shall notify the Contractor of the Rates, Charges, 

455 and Tiered Pricing Component as follows: 

456 (1) Prior to July 1 of each Calendar Year, the Contracting Officer shall 

457 provide the Contractor an estimate of the Charges for Project Water that will be applied to the 

458 period October 1, of the current Calendar Year, through September 30, of the following Calendar 

459 Year, and the basis for such estimate. The Contractor shall be allowed not less than two months 

460 to review and comment on such estimates. On or before September 15 of each Calendar Year, 
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461 the Contracting Officer shall notify the Contractor in writing of the Charges to be in effect during 

462 the period October 1 of the current Calendar Year, through September 30, of the following 

463 Calendar Year, and such notification shall revise Exhibit “B.” 

464 (2) Prior to October 1 of each Calendar Year, the Contracting Officer 

465 shall make available to the Contractor an estimate of the Rates and Tiered Pricing Component 

466 for Project Water for the following Year and the computations and cost allocations upon which 

467 those Rates are based. The Contractor shall be allowed not less than two months to review and 

468 comment on such computations and cost allocations. By December 31 of each Calendar Year, 

469 the Contracting Officer shall provide the Contractor with the final Rates and Tiered Pricing 

470 Component to be in effect for the upcoming Year, and such notification shall revise Exhibit “B.” 

471 (c) At the time the Contractor submits the initial schedule for the delivery of 

472 Project Water for each Year pursuant to subdivision (b) of Article 4 of this Contract, the 

473 Contractor shall make an advance payment to the United States equal to the total amount payable 

474 pursuant to the applicable Rate(s) set under subdivision (a) of this Article, for the Project Water 

475 scheduled to be delivered pursuant to this Contract during the first two calendar months of the 

476 Year. Before the end of the first month and before the end of each calendar month thereafter, the 

477 Contractor shall make an advance payment to the United States, at the Rate(s) set under 

478 subdivision (a) of this Article, for the Water Scheduled to be delivered pursuant to this Contract 

479 during the second month immediately following. Adjustments between advance payments for 

480 Water Scheduled and payments at Rates due for Water Delivered shall be made before the end of 

481 the following month; Provided, That any revised schedule submitted by the Contractor pursuant 

482 to Article 4 of this Contract which increases the amount of Water Delivered pursuant to this 

483 Contract during any month shall be accompanied with appropriate advance payment, at the Rates 

484 then in effect, to assure that Project Water is not delivered to the Contractor in advance of such 

485 payment. In any month in which the quantity of Water Delivered to the Contractor pursuant to 

486 this Contract equals the quantity of Water Scheduled and paid for by the Contractor, no 
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487 additional Project Water shall be delivered to the Contractor unless and until an advance 

488 payment at the Rates then in effect for such additional Project Water is made. Final adjustment 

489 between the advance payments for the Water Scheduled and payments for the quantities of Water 

490 Delivered during each Year pursuant to this Contract shall be made as soon as practicable but no 

491 later than April 30th of the following Year, or 60 days after the delivery of Project Water carried 

492 over under subdivision (f) of Article 3 of this Contract if such water is not delivered by the last 

493 day of February. 

494 (d) The Contractor shall also make a payment in addition to the Rate(s) in 

495 subdivision (c) of this Article to the United States for Water Delivered, at the Charges and the 

496 appropriate Tiered Pricing Component then in effect, before the end of the month following the 

497 month of delivery. The payments shall be consistent with the quantities of M&I Water Delivered 

498 as shown in the water delivery report for the subject month prepared by the Contracting Officer. 

499 The water delivery report shall be deemed a bill for the payment of Charges and the applicable 

500 Tiered Pricing Component for Water Delivered. Adjustment for overpayment or underpayment 

501 of Charges shall be made through the adjustment of payments due to the United States for 

502 Charges for the next month. Any amount to be paid for past due payment of Charges and the 

503 Tiered Pricing Component shall be computed pursuant to Article 20 of this Contract. 

504 (e) The Contractor shall pay for any Water Delivered under subdivision (a), 

505 (f), or (g) of Article 3 of this Contract as determined by the Contracting Officer pursuant to 

506 applicable statutes, associated regulations, any applicable provisions of guidelines or ratesetting 

507 policies; Provided, That the Rate for Water Delivered under subdivision (f) of Article 3 of this 

508 Contract shall be no more than the otherwise applicable Rate for M&I Water under subdivision 

509 (a) of this Article. 

510 (f) Payments to be made by the Contractor to the United States under this 

511 Contract may be paid from any revenues available to the Contractor. 
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512 (g) All revenues received by the United States from the Contractor relating to 

513 the delivery of Project Water or the delivery of non-Project water through Project facilities shall 

514 be allocated and applied in accordance with Federal Reclamation law and the associated rules or 

515 regulations, and the then-current Project ratesetting policies for M&I Water. 

516 (h) The Contracting Officer shall keep its accounts pertaining to the 

517 administration of the financial terms and conditions of its long-term contracts, in accordance 

518 with applicable Federal standards, so as to reflect the application of Project costs and revenues. 

519 The Contracting Officer shall, each Year upon request of the Contractor, provide to the 

520 Contractor a detailed accounting of all Project and Contractor expense allocations, the 

521 disposition of all Project and Contractor revenues, and a summary of all water delivery 

522 information. The Contracting Officer and the Contractor shall enter into good faith negotiations 

523 to resolve any discrepancies or disputes relating to accountings, reports, or information. 

524 (i) The parties acknowledge and agree that the efficient administration of this 

525 Contract is their mutual goal. Recognizing that experience has demonstrated that mechanisms, 

526 policies, and procedures used for establishing Rates, Charges, and Tiered Pricing Components, 

527 and/or for making and allocating payments, other than those set forth in this Article may be in 

528 the mutual best interest of the parties, it is expressly agreed that the parties may enter into 

529 agreements to modify the mechanisms, policies, and procedures for any of those purposes while 

530 this Contract is in effect without amending this Contract. 

531 (j) (1) Beginning at such time as deliveries of Project Water in a Year 

532 exceed 80 percent of the Contract Total, then before the end of the month following the month of 

533 delivery the Contractor shall make an additional payment to the United States equal to the 

534 applicable Tiered Pricing Component. The Tiered Pricing Component for the amount of Water 

535 Delivered in excess of 80 percent of the Contract Total, but less than or equal to 90 percent of the 

536 Contract Total, shall equal one-half of the difference between the Rate established under 

537 subdivision (a) of this Article and the M&I Full Cost Water Rate. The Tiered Pricing 
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538 Component for the amount of Water Delivered which exceeds 90 percent of the Contract Total 

539 shall equal the difference between (i) the Rate established under subdivision (a) of this Article 

540 and (ii) the M&I Full Cost Water Rate. 

541 (2) Omitted. 

542 (3) For purposes of determining the applicability of the Tiered Pricing 

543 Component pursuant to this Article, Water Delivered shall include Project Water that the 

544 Contractor transfers to others but shall not include Project Water transferred to the Contractor, 

545 nor shall it include the additional water provided to the Contractor under the provisions of 

546 subdivision (f) of Article 3 of this Contract. 

547 (k) For the term of this Contract, Rates under the respective ratesetting 

548 policies will be established to recover only reimbursable O&M (including any deficits) and 

549 capital costs of the Project, as those terms are used in the then-current Project ratesetting 

550 policies, and interest, where appropriate, except in instances where a minimum Rate is applicable 

551 in accordance with the relevant Project ratesetting policy. Changes of significance in practices 

552 which implement the Contracting Officer’s ratesetting policies will not be implemented until the 

553 Contracting Officer has provided the Contractor an opportunity to discuss the nature, need, and 

554 impact of the proposed change. 

555 (l) Except as provided in subsections 3405(a)(1)(B) and 3405(f) of the 

556 CVPIA, the Rates for Project Water transferred by the Contractor shall be the Contractor’s Rates, 

557 adjusted upward or downward to reflect the changed costs, if any, incurred by the Contracting 

558 Officer in the delivery of the transferred Project Water to the transferee’s point of delivery in 

559 accordance with the then-applicable Project ratesetting policy. 

560 (m) Omitted. 

561 (n) With respect to the Rates for M&I Water, the Contractor asserts that it is 

562 not legally obligated to pay any Central Valley Project deficits claimed by the United States to 

563 have accrued as of the date of this Contract or deficit-related interest charges thereon. By 
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564 entering into this Contract, the Contractor does not waive any legal rights or remedies that it may 

565 have with respect to such disputed issues. Notwithstanding the execution of this Contract, and 

566 payments made hereunder, the Contractor may challenge in the appropriate administrative or 

567 judicial forums: (1) the existence, computation, or imposition of any deficit charges accruing 

568 during the term of the Existing Contract and any preceding interim renewal contracts, if 

569 applicable; (2) interest accruing on any such deficits; (3) the inclusion of any such deficit charges 

570 or interest in the Rates; (4) the application by the United States of payments made by the 

571 Contractor under its Existing Contract and any preceding interim renewal contract, if applicable; 

572 and (5) the application of such payments in the Rates. The Contracting Officer agrees that the 

573 Contractor shall be entitled to the benefit of any administrative or judicial ruling in favor of any 

574 other Project M&I contractor on any of these issues, and credits for payments heretofore made,

575 Provided, That the basis for such ruling is applicable to the Contractor. 

576 8. Omitted. 

577 SALES, TRANSFERS, OR EXCHANGES OF WATER

578 9. (a) The right to receive Project Water provided for in this Contract may be 

579 sold, transferred, or exchanged to others for reasonable and beneficial uses within the State of 

580 California if such sale, transfer, or exchange is authorized by applicable Federal and State laws, 

581 and applicable guidelines or regulations then in effect. No sale, transfer, or exchange of Project 

582 Water under this Contract may take place without the prior written approval of the Contracting 

583 Officer, except as provided for in subdivision (b) of this Article, and no such sales, transfers, or 

584 exchanges shall be approved absent all appropriate environmental documentation, including but 

585 not limited to documents prepared pursuant to the NEPA and ESA. Such environmental 

586 documentation should include, as appropriate, an analysis of groundwater impacts and economic 

587 and social effects, including environmental justice, of the proposed water transfers on both the 

588 transferor and transferee. 
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589 (b) In order to facilitate efficient water management by means of water 

590 transfers of the type historically carried out among Project Contractors located within the same 

591 geographical area and to allow the Contractor to participate in an accelerated water transfer 

592 program during the term of this Contract, the Contracting Officer shall prepare, as appropriate, 

593 all necessary environmental documentation including, but not limited to, documents prepared 

594 pursuant to the NEPA and ESA analyzing annual transfers within such geographical areas, and 

595 the Contracting Officer shall determine whether such transfers comply with applicable law. 

596 Following the completion of the environmental documentation, such transfers addressed in such 

597 documentation shall be conducted with advance notice to the Contracting Officer, but shall not 

598 require prior written approval by the Contracting Officer. Such environmental documentation 

599 and the Contracting Officer’s compliance determination shall be reviewed every five years and 

600 updated, as necessary, prior to the expiration of the then-existing five-year period. All 

601 subsequent environmental documentation shall include an alternative to evaluate not less than the 

602 quantity of Project Water historically transferred within the same geographical area. 

603 (c) For a water transfer to qualify under subdivision (b) of this Article, such 

604 water transfer must: (i) be for irrigation purposes for lands irrigated within the previous three 

605 years, for M&I use, groundwater recharge, water banking, or fish and wildlife resources; not lead 

606 to land conversion; and be delivered to established cropland, wildlife refuges, groundwater 

607 basins or M&I use, or for fish and wildlife purposes; (ii) occur within a single Year; (iii) occur 

608 between a willing seller and a willing buyer; (iv) convey water through existing facilities with no 

609 new construction or modifications to facilities and be between existing Project Contractors 

610 and/or the Contractor and the United States, Department of the Interior; and (v) comply with all 

611 applicable Federal, State, and local or tribal laws and requirements imposed for protection of the 

612 environment and Indian Trust Assets, as defined under Federal law. 

613 (d) Solely for the purpose of determining whether Section 3405(a)(1)(M) of 

614 the CVPIA applies to the Contractor as a transferor or transferee of Project Water, the 
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615 Contracting Officer acknowledges that the Contractor is within a county, watershed or other area 

616 of origin, as those terms are utilized under California law, of water that constitutes the natural 

617 flow of the American River and its tributaries above the confluence of the American and 

618 Sacramento Rivers. 

619 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

620 10. (a) The amount of any overpayment by the Contractor of the Contractor’s 

621 O&M, capital, interest and deficit (if any) obligations for the Year shall be applied first to any 

622 current liabilities of the Contractor arising out of this Contract then due and payable. 

623 Overpayments of more than $1,000 shall be refunded at the Contractor’s request. In lieu of a 

624 refund, any amount of such overpayment, at the option of the Contractor, may be credited against 

625 amounts to become due to the United States by the Contractor. With respect to overpayment, 

626 such refund or adjustment shall constitute the sole remedy of the Contractor or anyone having or 

627 claiming to have the right to the use of any of the Project Water supply provided for herein. All 

628 credits and refunds of overpayments shall be made within 30 days of the Contracting Officer 

629 obtaining direction as to how to credit or refund such overpayment in response to the notice to 

630 the Contractor that it has finalized the accounts for the Year in which the overpayment was 

631 made. 

632 (b) All advances for miscellaneous costs incurred for work requested by the 

633 Contractor pursuant to Article 25 of this Contract shall be adjusted to reflect the actual costs 

634 when the work has been completed. If the advances exceed the actual costs incurred, the 

635 difference will be refunded to the Contractor. If the actual costs exceed the Contractor's 

636 advances, the Contractor will be billed for the additional costs pursuant to Article 25. 

637 TEMPORARY REDUCTIONS--RETURN FLOWS

638 11. (a) Subject to: (i) the authorized purposes and priorities of the Project and the 

639 requirements of Federal law; and (ii) the obligations of the United States under existing 

640 contracts, or renewals thereof, providing for water deliveries from the Project, the Contracting 
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641 Officer shall make all reasonable efforts to optimize Project Water deliveries to the Contractor as 

642 provided in this Contract. 

643 (b) The Contracting Officer may temporarily discontinue or reduce the 

644 quantity of Water Delivered to the Contractor as herein provided for the purposes of 

645 investigation, inspection, maintenance, repair, or replacement of any of the Project facilities or 

646 any part thereof necessary for the delivery of Project Water to the Contractor, but so far as 

647 feasible the Contracting Officer will give the Contractor due notice in advance of such temporary 

648 discontinuance or reduction, except in case of emergency, in which case no notice need be given; 

649 Provided, That the United States shall use its best efforts to avoid any discontinuance or 

650 reduction in such service. Upon resumption of service after such reduction or discontinuance, 

651 and if requested by the Contractor, the United States will, if possible, deliver the quantity of 

652 Project Water which would have been delivered hereunder in the absence of such discontinuance 

653 or reduction. 

654 (c) The United States reserves the right to all seepage and return flow water 

655 derived from Water Delivered to the Contractor hereunder which escapes or is discharged 

656 beyond the Contractor's Service Area; Provided, That this shall not be construed as claiming for 

657 the United States any right to seepage or return flow being put to reasonable and beneficial use 

658 pursuant to this Contract within the Contractor’s Service Area by the Contractor or those 

659 claiming by, through, or under the Contractor. 

660 CONSTRAINTS ON THE AVAILABILITY OF WATER

661 12. (a) In its operation of the Project, the Contracting Officer will use all 

662 reasonable means to guard against a Condition of Shortage in the quantity of water to be made 

663 available to the Contractor pursuant to this Contract. In the event the Contracting Officer 

664 determines that a Condition of Shortage appears probable, the Contracting Officer will notify the 

665 Contractor of said determination as soon as practicable. 
Contract No. 14-06-200-5082A-LTR1 

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666 (b) If there is a Condition of Shortage because of errors in physical operations 

667 of the Project, drought, other physical causes beyond the control of the Contracting Officer or 

668 actions taken by the Contracting Officer to meet legal obligations then, except as provided in 

669 subdivision (a) of Article 18 of this Contract, no liability shall accrue against the United States or 

670 any of its officers, agents, or employees for any damage, direct or indirect, arising therefrom. 

671 (c) Omitted. 

672 (d) Project Water furnished under this Contract will be allocated in 

673 accordance with the then-existing Project M&I Water Shortage Policy. Such policy shall be 

674 amended, modified, or superseded only through a public notice and comment procedure. 

675 (e) By entering into this Contract, the Contractor does not waive any legal 

676 rights or remedies it may have to file or participate in any administrative or judicial proceeding 

677 contesting (i) the sufficiency of the manner in which any Project M&I Water Shortage Policy 

678 adopted after the effective date of this Contract was promulgated; (ii) the substance of such a 

679 policy; or (iii) the applicability of such a policy. By agreeing to the foregoing, the Contracting 

680 Officer does not waive any legal defenses or remedies that it may then have to assert in such a 

681 proceeding. 

682 13. Omitted. 

683 RULES AND REGULATIONS

684 14. The parties agree that the delivery of M&I Water or use of Federal facilities 

685 pursuant to this Contract is subject to Federal Reclamation law and the applicable rules and 

686 regulations promulgated by the Secretary of the Interior under Federal Reclamation law. 

687 WATER AND AIR POLLUTION CONTROL

688 15. The Contractor, in carrying out this Contract, shall comply with all applicable 

689 water and air pollution laws and regulations of the United States and the State of California, and 

690 shall obtain all required permits or licenses from the appropriate Federal, State, or local 

691 authorities. 
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692 QUALITY OF WATER

693 16. (a) Project facilities used to deliver Project Water to the Contractor pursuant 

694 to this Contract shall be operated and maintained to enable the United States to deliver Project 

695 Water to the Contractor in accordance with the water quality standards specified in subsection 

696 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

697 October 27, 1986 (100 Stat. 3050), or other existing Federal laws. The United States is under no 

698 obligation to construct or furnish water treatment facilities to maintain or to improve the quality 

699 of Water Delivered to the Contractor pursuant to this Contract. The United States does not 

700 warrant the quality of Water Delivered to the Contractor pursuant to this Contract. 

701 (b) The O&M of Project facilities shall be performed in such manner as is 

702 practicable to maintain the quality of raw water made available through such facilities at the 

703 highest level reasonably attainable as determined by the Contracting Officer. The Contractor 

704 shall be responsible for compliance with all State and Federal water quality standards applicable 

705 to surface and subsurface agricultural drainage discharges generated through the use of Federal 

706 or Contractor facilities or Project Water provided by the Contractor within the Contractor's 

707 Service Area. 

708 WATER ACQUIRED BY THE CONTRACTOR

709 OTHER THAN FROM THE UNITED STATES

710 17. (a) Omitted. 

711 (b) Water or water rights now owned or hereafter acquired by the Contractor, 

712 other than from the United States, may be stored, conveyed, and/or diverted through Project 

713 facilities, subject to the completion of appropriate environmental documentation, with the 

714 approval of the Contracting Officer and the execution of any contract determined by the 

715 Contracting Officer to be necessary, consistent with the following provisions: 

716 (1) The Contractor may introduce non-Project water into Project 

717 facilities and deliver said water to lands within the Contractor’s Service Area, including 

718 Ineligible Lands, subject to payment to the United States of an appropriate rate as determined by 
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719 the applicable Project ratesetting policy and the Project use power policy, if such Project use 

720 power policy is applicable, each as amended, modified, or superseded from time to time. In 

721 addition, if electrical power is required to pump non-Project water through the facilities, the 

722 Contractor shall be responsible for obtaining the necessary power and paying the necessary 

723 charges therefor. 

724 (2) Delivery of such non-Project water in and through Project facilities 

725 shall only be allowed to the extent such deliveries do not: (i) interfere with other Project 

726 purposes as determined by the Contracting Officer; (ii) reduce the quantity or quality of water 

727 available to other Project contractors; (iii) interfere with the delivery of contractual water 

728 entitlements to any other Project water service contractors; or (iv) interfere with the physical 

729 maintenance of the Project facilities; Provided, that nothing in this Article is intended to limit the 

730 United States’ obligation to pass the Contractor’s Diversion Water through Project storage 

731 facilities to the extent required under the applicable provisions of California law. 

732 (3) The United States shall not be responsible for control, care, or 

733 distribution of the non-Project water before it is introduced into or after it is delivered from the 

734 Project facilities. The Contractor hereby releases and agrees to defend and indemnify the United 

735 States and their respective officers, agents, and employees, from any claim for damage to 

736 persons or property, direct or indirect, resulting from the acts of the Contractor or its officers, 

737 employees, agents or assigns, in (i) extracting or diverting non-Project water from any source, or 

738 (ii) diverting such non-Project water into Project facilities. 

739 (4) Diversion of such non-Project water into Project facilities shall be 

740 consistent with all applicable laws, and if involving groundwater, consistent with any applicable 

741 groundwater management plan for the area from which it was extracted. 

742 (5) After Project purposes are met, as determined by the Contracting 

743 Officer, the United States and the Contractor shall share priority to utilize the remaining capacity 

744 of the facilities declared to be available by the Contracting Officer for conveyance and 
Contract No. 14-06-200-5082A-LTR1 

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745 transportation of non-Project water prior to any such remaining capacity being made available to 

746 non-Project contractors. 

747 OPINIONS AND DETERMINATIONS

748 18. (a) Where the terms of this Contract provide for actions to be based upon the 

749 opinion or determination of either party to this Contract, said terms shall not be construed as 

750 permitting such action to be predicated upon arbitrary, capricious, or unreasonable opinions or 

751 determinations. Both parties, notwithstanding any other provisions of this Contract, expressly 

752 reserve the right to seek relief from and appropriate adjustment for any such arbitrary, capricious, 

753 or unreasonable opinion or determination. Each opinion or determination by either party shall be 

754 provided in a timely manner. Nothing in subdivision (a) of Article 18 of this Contract is 

755 intended to or shall affect or alter the standard of judicial review applicable under Federal law to 

756 any opinion or determination implementing a specific provision of Federal law embodied in 

757 statute or regulation. 

758 (b) The Contracting Officer shall have the right to make determinations 

759 necessary to administer this Contract that are consistent with the provisions of this Contract, the 

760 laws of the United States and of the State of California, and the rules and regulations 

761 promulgated by the Secretary of the Interior. Such determinations shall be made in consultation 

762 with the Contractor to the extent reasonably practicable. 

763 COORDINATION AND COOPERATION

764 19. (a) In order to further their mutual goals and objectives, the Contracting 

765 Officer and the Contractor shall communicate, coordinate, and cooperate with each other, and 

766 with other affected Project Contractors, in order to improve the operation and management of the 

767 Project. The communication, coordination, and cooperation regarding operations and 

768 management shall include, but not be limited to, any action which will or may materially affect 

769 the quantity or quality of Project Water supply, the allocation of Project Water supply, and 

770 Project financial matters including, but not limited to, budget issues. The communication, 
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771 coordination, and cooperation provided for hereunder shall extend to all provisions of this 

772 Contract. Each party shall retain exclusive decision making authority for all actions, opinions, 

773 and determinations to be made by the respective party. 

774 (b) Within 120 days following the effective date of this Contract, the 

775 Contractor, other affected Project Contractors, and the Contracting Officer shall arrange to meet 

776 with interested Project Contractors to develop a mutually agreeable, written Project-wide 

777 process, which may be amended as necessary separate and apart from this Contract. The goal of 

778 this process shall be to provide, to the extent practicable, the means of mutual communication 

779 and interaction regarding significant decisions concerning Project operation and management on 

780 a real-time basis. 

781 (c) In light of the factors referred to in subdivision (b) of Article 3 of this 

782 Contract, it is the intent of the Secretary to improve water supply reliability. To carry out this 

783 intent: 

784 (1) The Contracting Officer will, at the request of the Contractor, 

785 assist in the development of integrated resource management plans for the Contractor. Further, 

786 the Contracting Officer will, as appropriate, seek authorizations for implementation of 

787 partnerships to improve water supply, water quality, and reliability. 

788 (2) The Secretary will, as appropriate, pursue program and project 

789 implementation and authorization in coordination with Project Contractors to improve the water 

790 supply, water quality, and reliability of the Project for all Project purposes. 

791 (3) The Secretary will coordinate with Project Contractors and the 

792 State of California to seek improved water resource management. 

793 (4) The Secretary will coordinate actions of agencies within the 

794 Department of the Interior that may impact the availability of water for Project purposes. 
Contract No. 14-06-200-5082A-LTR1 

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795 (5) The Contracting Officer shall periodically, but not less than 

796 annually, hold division level meetings to discuss Project operations, division level water 

797 management activities, and other issues as appropriate. 

798 (d) Without limiting the contractual obligations of the Contracting Officer 

799 under the other Articles of this Contract, nothing in this Article shall be construed to limit or 

800 constrain the Contracting Officer’s ability to communicate, coordinate, and cooperate with the 

801 Contractor or other interested stakeholders or to make decisions in a timely fashion as needed to 

802 protect health, safety, or the physical integrity of structures or facilities. 

803 CHARGES FOR DELINQUENT PAYMENTS

804 20. (a) The Contractor shall be subject to interest, administrative and penalty 

805 charges on delinquent installments or payments. When a payment is not received by the due 

806 date, the Contractor shall pay an interest charge for each day the payment is delinquent beyond 

807 the due date. When a payment becomes sixty (60) days delinquent, the Contractor shall pay an 

808 administrative charge to cover additional costs of billing and processing the delinquent payment. 

809 When a payment is delinquent ninety (90) days or more, the Contractor shall pay an additional 

810 penalty charge of six (6%) percent per year for each day the payment is delinquent beyond the 

811 due date. Further, the Contractor shall pay any fees incurred for debt collection services 

812 associated with a delinquent payment. 

813 (b) The interest charge rate shall be the greater of the rate prescribed quarterly 

814 in the Federal Register by the Department of the Treasury for application to overdue payments, 

815 or the interest rate of one-half of one (0.5%) percent per month prescribed by Section 6 of the 

816 Reclamation Project Act of 1939 (Public Law 76-260). The interest charge rate shall be 

817 determined as of the due date and remain fixed for the duration of the delinquent period. 

818 (c) When a partial payment on a delinquent account is received, the amount 

819 received shall be applied, first to the penalty, second to the administrative charges, third to the 

820 accrued interest, and finally to the overdue payment. 

821 EQUAL OPPORTUNITY

822 21. During the performance of this Contract, the Contractor agrees as follows: 

823 (a) The Contractor will not discriminate against any employee or applicant for 

824 employment because of race, color, religion, sex, or national origin. The Contractor will take 

825 affirmative action to ensure that applicants are employed, and that employees are treated during 

826 employment, without regard to their race, color, religion, sex, or national origin. Such action 
Contract No. 14-06-200-5082A-LTR1 

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827 shall include, but not be limited to, the following: Employment, upgrading, demotion, or 

828 transfer; recruitment or recruitment advertising; layoff or termination, rates of payment or other 

829 forms of compensation; and selection for training, including apprenticeship. The Contractor 

830 agrees to post in conspicuous places, available to employees and applicants for employment, 

831 notices to be provided by the Contracting Officer setting forth the provisions of this 

832 nondiscrimination clause. 

833 (b) The Contractor will, in all solicitations or advertisements for employees 

834 placed by or on behalf of the Contractor, state that all qualified applicants will receive 

835 consideration for employment without discrimination because of race, color, religion, sex, or 

836 national origin. 

837 (c) The Contractor will send to each labor union or representative of workers 

838 with which it has a collective bargaining agreement or other contract or understanding, a notice, 

839 to be provided by the Contracting Officer, advising the said labor union or workers' 

840 representative of the Contractor's commitments under Section 202 of Executive Order 11246 of 

841 September 24, 1965, and shall post copies of the notice in conspicuous places available to 

842 employees and applicants for employment. 

843 

844 (d) The Contractor will comply with all provisions of Executive Order 

845 No. 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders 

846 of the Secretary of Labor. 

847 (e) The Contractor will furnish all information and reports required by said 

848 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

849 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting 

850 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with 

851 such rules, regulations, and orders. 

852 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

853 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

854 canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared 

855 ineligible for further Government contracts in accordance with procedures authorized in said 

856 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

857 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

858 otherwise provided by law. 

859 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

860 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

861 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

862 provisions will be binding upon each subcontractor or vendor. The Contractor will take such 

863 action with respect to any subcontract or purchase order as may be directed by the Secretary of 

864 Labor as a means of enforcing such provisions, including sanctions for noncompliance: 

865 Provided, however, That in the event the Contractor becomes involved in, or is threatened with, 

866 litigation with a subcontractor or vendor as a result of such direction, the Contractor may request 

867 the United States to enter into such litigation to protect the interests of the United States. 
Contract No. 14-06-200-5082A-LTR1 

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868 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

869 22. (a) The obligation of the Contractor to pay the United States as provided in 

870 this Contract is a general obligation of the Contractor notwithstanding the manner in which the 

871 obligation may be distributed among the Contractor's water users and notwithstanding the default 

872 of individual water users in their obligations to the Contractor. 

873 (b) The payment of charges becoming due hereunder is a condition precedent 

874 to receiving benefits under this Contract. The United States shall not make water available to the 

875 Contractor through Project facilities during any period in which the Contractor may be in arrears 

876 in the advance payment of water rates due the United States. The Contractor shall not furnish 

877 water made available pursuant to this Contract for lands or parties which are in arrears in the 

878 advance payment of water rates levied or established by the Contractor. 

879 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

880 obligation to require advance payment for water rates which it levies. 

881 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

882 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 

883 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

884 Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights 

885 laws, as well as with their respective implementing regulations and guidelines imposed by the 

886 U.S. Department of the Interior and/or Bureau of Reclamation. 

887 (b) These statutes require that no person in the United States shall, on the 

888 grounds of race, color, national origin, handicap, or age, be excluded from participation in, be 

889 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

890 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

891 Contractor agrees to immediately take any measures necessary to implement this obligation, 

892 including permitting officials of the United States to inspect premises, programs, and documents. 

893 (c) The Contractor makes this agreement in consideration of and for the 

894 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or other 

895 Federal financial assistance extended after the date hereof to the Contractor by the Bureau of 

896 Reclamation, including installment payments after such date on account of arrangements for 

897 Federal financial assistance which were approved before such date. The Contractor recognizes 

898 and agrees that such Federal assistance will be extended in reliance on the representations and 

899 agreements made in this Article, and that the United States reserves the right to seek judicial 

900 enforcement thereof. 

901 24. Omitted. 
Contract No. 14-06-200-5082A-LTR1 

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902 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

903 25. In addition to all other payments to be made by the Contractor pursuant to this 

904 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

905 detailed statement submitted by the Contracting Officer to the Contractor for such specific items 

906 of direct cost incurred by the United States for work requested by the Contractor associated with 

907 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

908 and procedures. All such amounts referred to in this Article shall not exceed the amount agreed 

909 to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

910 contract administration. 

911 WATER CONSERVATION

912 26. (a) Prior to the delivery of water provided from or conveyed through 

913 Federally constructed or Federally financed facilities pursuant to this Contract, the Contractor 

914 shall be implementing an effective water conservation and efficiency program based on the 

915 Contractor's water conservation plan that has been determined by the Contracting Officer to meet 

916 the conservation and efficiency criteria for evaluating water conservation plans established under 

917 Federal law. The water conservation and efficiency program shall contain definite water 

918 conservation objectives, appropriate economically feasible water conservation measures, and 

919 time schedules for meeting those objectives. Continued Project Water delivery pursuant to this 

920 Contract shall be contingent upon the Contractor’s continued implementation of such water 

921 conservation program. In the event the Contractor's water conservation plan or any revised water 

922 conservation plan completed pursuant to subdivision (d) of Article 26 of this Contract have not 

923 yet been determined by the Contracting Officer to meet such criteria, due to circumstances which 

924 the Contracting Officer determines are beyond the control of the Contractor, water deliveries 

925 shall be made under this Contract so long as the Contractor diligently works with the Contracting 

926 Officer to obtain such determination at the earliest practicable date, and thereafter the Contractor 
Contract No. 14-06-200-5082A-LTR1 

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927 immediately begins implementing its water conservation and efficiency program in accordance 

928 with the time schedules therein. 

929 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

930 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall 

931 implement the Best Management Practices identified by the time frames issued by the California 

932 Urban Water Conservation Council for such M&I Water unless any such practice is determined 

933 by the Contracting Officer to be inappropriate for the Contractor. 

934 (c) The Contractor shall submit to the Contracting Officer a report on the 

935 status of its implementation of the water conservation plan on the reporting dates specified in the 

936 then existing conservation and efficiency criteria established under Federal law. 

937 (d) At five-year intervals, the Contractor shall revise its water conservation 

938 plan to reflect the then-current conservation and efficiency criteria for evaluating water 

939 conservation plans established under Federal law and submit such revised water management 

940 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then 

941 determine if the water conservation plan meets Reclamation’s then-current conservation and 

942 efficiency criteria for evaluating water conservation plans established under Federal law. 

943 (e) If the Contractor is engaged in direct ground-water recharge, such activity 

944 shall be described in the Contractor’s water conservation plan. 

945 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

946 27. Except as specifically provided in Article 17 of this Contract, the provisions of 

947 this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

948 hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

949 Area. Any such water shall not be considered Project Water under this Contract. In addition, 

950 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or 

951 any water user within the Contractor's Service Area acquires or has available under any other 

952 contract pursuant to Federal Reclamation law. 
Contract No. 14-06-200-5082A-LTR1 

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953 28. Omitted. 

954 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

955 29. The expenditure or advance of any money or the performance of any obligation of 

956 the United States under this Contract shall be contingent upon appropriation or allotment of 

957 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

958 obligations under this Contract. No liability shall accrue to the United States in case funds are 

959 not appropriated or allotted. 

960 BOOKS, RECORDS, AND REPORTS

961 30. (a) The Contractor shall establish and maintain accounts and other books and 

962 records pertaining to administration of the terms and conditions of this Contract, including: the 

963 Contractor's financial transactions, water supply data, and Project land and right-of-way 

964 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

965 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

966 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

967 Officer may require. Subject to applicable Federal laws and regulations, each party to this 

968 Contract shall have the right during office hours to examine and make copies of the other party's 

969 books and records relating to matters covered by this Contract. 

970 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

971 books, records, or other information shall be requested from the Contractor by the Contracting 

972 Officer unless such books, records, or information are reasonably related to the administration or 

973 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

974 time within which to provide the requested books, records, or information. 

975 (c) Omitted. 

976 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

977 31. (a) The provisions of this Contract shall apply to and bind the successors and 

978 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

979 therein shall be valid until approved in writing by the Contracting Officer. 

980 (b) The assignment of any right or interest in this Contract by either party 

981 shall not interfere with the rights or obligations of the other party to this Contract absent the 

982 written concurrence of said other party. 

983 (c) The Contracting Officer shall not unreasonably condition or withhold his 

984 approval of any proposed assignment. 
Contract No. 14-06-200-5082A-LTR1 

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985 SEVERABILITY

986 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

987 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

988 an association or other form of organization whose primary function is to represent parties to 

989 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

990 enforceability of a provision included in this Contract and said person, entity, association, or 

991 organization obtains a final court decision holding that such provision is legally invalid or 

992 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

993 the parties to this Contract shall use their best efforts to (i) within 30days of the date of such final 

994 court decision identify by mutual agreement the provisions in this Contract which must be 

995 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

996 The time periods specified above may be extended by mutual agreement of the parties. Pending 

997 the completion of the actions designated above, to the extent it can do so without violating any 

998 applicable provisions of law, the United States shall continue to make the quantities of Project 

999 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

1000 Contract which were not found to be legally invalid or unenforceable in the final court decision. 

1001 RESOLUTION OF DISPUTES

1002 33. Should any dispute arise concerning any provisions of this Contract, or the 

1003 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

1004 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

1005 Officer referring any matter to Department of Justice, the party shall provide to the other party 

1006 30 days’ written notice of the intent to take such action; Provided, That such notice shall not be 

1007 required where a delay in commencing an action would prejudice the interests of the party that 

1008 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

1009 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

1010 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

1011 United States may have. 
Contract No. 14-06-200-5082A-LTR1 

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1012 OFFICIALS NOT TO BENEFIT

1013 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1014 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1015 manner as other water users or landowners. 

1016 CHANGES IN CONTRACTOR’S SERVICE AREA

1017 35. (a) While this Contract is in effect, no change may be made in the 

1018 Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

1019 or otherwise, except upon the Contracting Officer's written consent. 

1020 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1021 Officer will notify the Contractor of any additional information required by the Contracting 

1022 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

1023 schedule for timely completion of the process. Such process will analyze whether the proposed 

1024 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

1025 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

1026 to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 

1027 have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

1028 Contracting Officer shall comply with the NEPA and ESA. The Contractor will be responsible 

1029 for all costs incurred by the Contracting Officer in this process, and such costs will be paid in 

1030 accordance with Article 25 of this Contract. 

1031 FEDERAL LAWS

1032 36. By entering into this Contract, the Contractor does not waive its rights to contest 

1033 the validity or application in connection with the performance of the terms and conditions of this 

1034 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1035 the terms and conditions of this Contract unless and until relief from application of such Federal 

1036 law or regulation to the implementing provision of the Contract is granted by a court of 

1037 competent jurisdiction. 
Contract No. 14-06-200-5082A-LTR1 

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1038 NOTICES

1039 37. Any notice, demand, or request authorized or required by this Contract shall be 

1040 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

1041 delivered to the Area Manager, Bureau of Reclamation, 7794 Folsom Dam Road, Folsom, 

1042 California 95630-1777, and on behalf of the United States, when mailed, postage prepaid, or 

1043 delivered to the Board of Directors of the Placer County Water Agency, P. O. Box 6570, 

1044 Auburn, California 95604. The designation of the addressee or the address may be changed by 

1045 notice given in the same manner as provided in this Article for other notices. 

1046 CONFIRMATION OF CONTRACT

1047 38. The Contractor, after the execution of this Contract, shall furnish to the 

1048 Contracting Officer evidence that pursuant to the laws of the State of California, the Contractor 

1049 is a legally constituted entity and the Contract is lawful, valid, and binding on the Contractor. 

1050 This Contract shall not be binding on the United States until such evidence has been provided to 

1051 the Contracting Officer’s satisfaction. 
Contract No. 14-06-200-5082A-LTR1 

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1052 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of 

1053 the day and year first above written. 

1054 THE UNITED STATES OF AMERICA 

1055 By: ______________________________________ 

1056 Regional Director, Mid-Pacific Region 

1057 Bureau of Reclamation 

1058 (SEAL) 

1059 PLACER COUNTY WATER AGENCY 

1060 By: ______________________________________ 

1061 Chair of the Board of Directors 

1062 Attest: 

1063 By: ______________________________ 

1064 Secretary of the Board of Directors 

1065 (H:\pub 440\LTRC\Folsom Final Draft LTRC’s\10-25-04 PCWA Final Draft Contract with 

1066 exhibits.doc) 
Contract No. 14-06-200-5082A-LTR1 

EXHIBIT A

Placer County Water Agency 

[Map or Description of Service Area] 
Contract No. 14-06-200-5082A-LTR1 

EXHIBIT B

PLACER COUNTY WATER AGENCY

 

 2004 Rates Per Acre-Foot

 

 M&I Water 

Capital Rate: $17.33 

O&M Rates: 

Water Marketing $ 5.01 

 Storage $ 6.38 

Conveyance $ 0.00 

CFO/PFR Adjustment Rate $ 0.00 

Deficit Rate: $ 0.00 

TOTAL COST-OF-SERVICE (COS) RATE $28.82 

TIERED PRICING COMPONENT>80%<=90% OF As needed 

CONTRACT TOTAL (Full Cost Rate – COS Rate)/2) 

TIERED PRICING COMPONENT>90% OF As needed 

CONTRACT TOTAL (Full Cost Rate – COS Rate) 

SURCHARGES UNDER P. L.102-575 

TO RESTORATION FUND ** 

 

M&I Surcharge $32.58 

Restoration Payments $15.64 

 [Section 3407(d)(2)(A)] 

** The surcharges are payments in addition to the water rates and were determined 

 pursuant to Title XXXIV of Public Law 102-575. Restoration fund surcharges 

 Under P. L. 102-575 are on a fiscal year basis (10/1-9/30).