Contract No.

 4-07-20-W1134-IR7

UNITED STATES DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

Central Valley Project, California

INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

THE CITY OF SHASTA LAKE 

PROVIDING FOR PROJECT WATER SERVICE

Table of Contents

Article No. Title Page No.

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

Explanatory Recitals ............................................... 1

1 Definitions ....................................................... 5

2 Term of Contract - Right to Use of Water ............................... 7

3 Water to Be Made Available and Delivered to the Contractor .............. 12

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

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

6 Measurement of Water Within the City ................................ 16

7 Rates and Method of Payment for Water ............................... 17

8 Transfers or Exchanges of Water ..................................... 21

9 Application of Payments and Adjustments ............................. 21

10 Temporary Reductions--Return Flows ................................. 22

11 Water Shortage and Apportionment .................................. 23

12 Compliance with Federal Reclamation Law ............................ 26

13 Water and Air Pollution Control ..................................... 26

14 Hazardous Material ............................................... 26

15 Quality of Water .................................................. 27

16 Opinions and Determinations ....................................... 28

17 Charges for Delinquent Payments .................................... 29

18 Equal Opportunity ................................................ 29

19 General Obligation--Benefits Conditioned upon Payment ................. 31

20 Compliance with Civil Rights Laws and Regulations ..................... 31

21 Privacy Act Compliance ........................................... 32

22 Contractor to Pay Certain Miscellaneous Costs .......................... 32

23 Water Conservation ............................................... 33

24 Existing or Acquired Water or Water Rights ............................ 35

25 Contingent on Appropriation or Allotment of Funds ..................... 35

26 Books Records and Reports ......................................... 35

27 Assignment Limited--Successors and Assigns Obligated .................. 36
Article No. Title Page No.

28 Severability ..................................................... 36

29 Officials Not to Benefit ............................................ 37

30 Changes in Contractor's Boundaries .................................. 37

31 Notices ......................................................... 37

Signature Page ................................................... 38

Exhibit A

Exhibit B
1 Contract No.

2 4-07-20-W1134-IR7

3

4

5 UNITED STATES

6 DEPARTMENT OF THE INTERIOR

7 BUREAU OF RECLAMATION

8 Central Valley Project, California

9

10 INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

11 AND

12 THE CITY OF SHASTA LAKE

13 PROVIDING FOR PROJECT WATER SERVICE

14

THIS CONTRACT, made this 28th 15 day of February 2001, in pursuance

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

17 thereto, including, but not limited to, the acts of August 26, 1937 (50 Stat. 844), as amended and

18 supplemented, August 4, 1939 (53 Stat. 1187), as amended and supplemented, July 2, 1956 (70

19 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1262), as amended and Title

20 XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all collectively hereinafter referred to as

21 the Federal Reclamation law, between THE UNITED STATES OF AMERICA, hereinafter

22 referred to as the United States, and THE CITY OF SHASTA LAKE, hereinafter referred to as

23 the Contractor, a public agency of the State of California, duly organized, existing, and acting

24 pursuant to the laws thereof, with its principal place of business in Shasta Lake, California;

25 WITNESSETH, That:

26 EXPLANATORY RECITALS

27 WHEREAS, the United States has constructed and is operating the Central Valley

28 Project, California for diversion, storage, carriage, distribution and beneficial use, for flood

29 control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection and

30 restoration, generation and distribution of electric energy, salinity control, navigation and other
2

1 beneficial uses, of waters of the Sacramento River, the American River, the Trinity River, and

2 the San Joaquin River and their tributaries; and

3 WHEREAS, the United States constructed the Shasta Dam pumping facilities and

4 the Toyon Pipeline, which will be used in part for the furnishing of water to the Contractor

5 pursuant to the terms of this interim renewal contract; and 

6 WHEREAS, on August 12, 1948, the Shasta Dam Area Public Utility District

7 (Shasta Dam Area) and the United States entered into Contract No. I1r-1515, which contract, as

8 amended on September 15, 1955 and July 16, 1957, provided for the furnishing of municipal and

9 industrial water to the Shasta Dam Area from the Project through August 12, 1988; and

10 WHEREAS, the Summit City Public Utility District (Summit City) and the

11 United States entered into Contract No. I1r-1523, as amended on July 19, 1966, which contract,

12 as modified by letter dated December 9, 1975, provided for the furnishing of municipal and

13 industrial water to Summit City from the Project through October 22, 1988; and

14 WHEREAS, in 1978 the Shasta Dam Area assumed, by assignment, the

15 administration of Contract No. I1r-1523, as amended; and

16 WHEREAS, the Shasta Dam Area requested to renew both contracts and merge

17 its contractual entitlement to Project municipal and industrial water; and

18 WHEREAS, the Shasta Dam Area and the United States entered into temporary

19 Contract Nos. 8-07-20-W0715, dated August 22, 1988, which expired August 12, 1990; 0-07-20-

20 W0885 dated September 19, 1990, which expired August 12, 1992; and 2-07-20-W1024, dated

21 September 24, 1992, which expired February 28, 1994, to provide for continued deliveries of

22 Project Water to said District, pending completion of the appropriate environmental analysis; and 
3

1 WHEREAS, in July 1993, the Shasta Dam Area was dissolved, and Contract

2 No. 2-07-20-W1024 was assumed by the Contractor; and

3 WHEREAS, the Contractor and the United States entered into interim renewal

4 contract No. 4-07-20-W1134, dated March 3, 1994, which renewed Contract Nos. I1r-1515 and

5 I1r-523 and provided for continued Project Water service to the Contractor from the Shasta Lake

6 through Toyon Pipeline for the period March 1, 1994, through February 28, 1995; and

7 WHEREAS, the Contractor and the United States entered into interim renewal

8 contract(s) identified as Contract No(s). 4-07-20-W1134-IR2, 4-07-20-W1134-IR3, 4-07-20-

9 W1134-IR4, 4-07-20-W1134-IR5, and 4-07-20-W1134-IR6, the latter of which is hereinafter

10 referred to as the Existing Interim Renewal Contract, which provided for the continued water

11 service to the Contractor from December 1, 2000, through February 28, 2001; and

12 WHEREAS, the Contractor has requested a subsequent interim renewal contract

13 pursuant to the Existing Interim Renewal Contract, Federal Reclamation law, and the laws of the

14 State of California, for water service from the Central Valley Project; and

15 WHEREAS, the United States has determined that the Contractor has to date

16 fulfilled all of its obligations under the Existing Interim Renewal Contract; and

17 WHEREAS, The Contracting Officer has determined that the Contractor has the

18 capability to fully utilize for reasonable and beneficial use, or shown projected future reasonable

19 and beneficial use for, the quantity of Project Water to be made available to it pursuant to this

20 interim renewal contract; and
4

1 WHEREAS, rights of renewal of Contract No. 4-07-20-W1134 and to convert

2 said contract to a contract as provided by subsection (d), Section 9 of the Act of August 4, 1939

3 (53 Stat. 1187) are set forth in said contract; and

4 WHEREAS, Section 3404 of the CVPIA, precludes long-term renewal of water

5 service contracts until the completion of appropriate environmental documentation, including a

6 programmatic environmental impact statement ("PEIS") pursuant to the National Environmental

7 Policy Act analyzing the direct and indirect impacts and benefits of implementing the CVPIA

8 and the potential renewal of all existing contracts for Project Water; and

9 WHEREAS, in order to continue water service provided under Project Water

10 service contracts that expire prior to the completion of the PEIS, the United States intends to

11 execute interim renewal contracts for a period not to exceed three (3) Years in length, and for

12 successive interim periods of not more than two (2) Years in length, until appropriate

13 environmental documentation, including the PEIS, is finally completed, at which time the

14 Secretary shall, pursuant to Federal Reclamation law, upon request of the Contractor, enter into a

15 long-term renewal contract for a period of twenty-five (25) Years; and may thereafter renew such

16 long-term renewal contracts for successive periods not to exceed twenty-five (25) Years each;

17 and

18 WHEREAS, the Secretary intends to assure uninterrupted water service and

19 continuity of contract through the process set forth in Article 2 hereof; and

20 WHEREAS, the United States is willing to renew the Existing Interim Renewal

21 Contract pursuant to Section 3404(c)(1) of the CVPIA on the terms and conditions set forth

22 below; and
5

1 WHEREAS, the United States and the Contractor entered into Agreement

2 No. 6-FC-20-03740, for the purposes of allowing the Contractor to use certain federal lands,

3 storage tanks, and miscellaneous piping for the purposes of construction and operation of a water

4 treatment plant and related facilities; and

5 WHEREAS, the Contractor has assumed under Agreement No. 6-FC-20-03740,

6 the operation, maintenance, and normal repair of such facilities.

7 NOW, THEREFORE, in consideration of the mutual and dependent covenants

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

9 DEFINITIONS

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

11 incompatible with the intent hereof, the term:

12 (a) "Calendar Year" shall mean the period January 1 through December 31,

13 both dates inclusive;

14 (b) "Charges" shall mean the payments in addition to the Rates 

15 determined annually by the Contracting Officer, required by the Federal Reclamation law,

16 including Section 3407 of CVPIA;

17 (c) "Contractor's Service Area" shall mean the area to which the Contractor is

18 permitted to provide Project Water under this interim renewal contract, and shall include 

19 that area formerly served by the Shasta Dam Area Public Utility District, now served by 

20 the City of Shasta Lake, all as shown on Exhibit "A". This Service Area can be expanded

21 to include all areas within the boundaries of the City of Shasta Lake, upon completion of 

22 appropriate environmental documentation, and approval of the Contracting Officer;
6

1 (d) "CVPIA" shall mean the Central Valley Project Improvement Act, Title

2 XXXIV of the Act of October 30, 1992 (106 Stat. 4706);

3 (e) "Delivered Water" shall mean Project Water made available to the

4 Contractor and diverted at the point(s) of delivery approved by the Contracting

5 Officer;

6 (f) "Full Cost Rate" shall mean that water rate described in Sections 205(a)(3)

7 or 202(3) of the Reclamation Reform Act of October 12, 1982 (96 Stat. 1263), as

8 amended, hereinafter referred to as RRA, whichever is applicable;

9 (g) "Irrigation Water" shall mean Project Water which is used primarily in the

10 production of agricultural crops or livestock, including domestic use incidental thereto,

11 and watering of livestock;

12 (h) "M&I Water" shall mean water made available from the Project for 

13 purposes such as human consumption, the watering of landscaping or pasture for animals 

14 (e.g., horses) which are kept for personal enjoyment;

15 (i) "O&M" shall mean normal and reasonable care, control, operation,

16 repair, replacement and maintenance of Project facilities;

17 (j) "Project" shall mean the Central Valley Project owned by the United 

18 States and operated by the Department of the Interior, Bureau of Reclamation;

19 (k) "Project Water" shall mean all water that is developed, diverted, stored, or

20 delivered by the United States in accordance with the statutes authorizing the Project and

21 in accordance with the terms and conditions of applicable water rights permits and

22 licenses acquired by and/or issued to the United States pursuant to California law;
7

1 (l) "Rates" shall mean the payments determined annually by the Contracting

2 Officer in accordance with the then current applicable water ratesetting policies for the

3 Project;

4 (m) "Reclaimed Water" shall mean waste water which, as a result of 

5 treatment, is suitable for a direct beneficial use or a controlled use that would 

6 not otherwise occur;

7 (n) "Secretary" or "Contracting Officer" shall mean the Secretary of the

8 United States, Department of the Interior, or his duly authorized representative;

9 (o) "Year" shall mean the period from and including March 1 of each 

10 Calendar Year through the last day of February of the following Calendar Year;

11 TERM OF CONTRACT - RIGHT TO USE OF WATER

12 2. (a) This interim renewal contract shall be effective from March 1, 2001 and

13 shall remain in effect through February 28, 2002, and thereafter will be renewed as described in

14 this article. Except as provided in subdivision (b) of this Article, until completion of all

15 appropriate environmental review, and provided that the Contractor has complied with all the

16 terms and conditions of the interim renewal contract in effect for the period immediately

17 preceding the requested successive interim renewal contract, this interim renewal contract will be

18 renewed, upon request of the Contractor, for successive interim periods each of which shall be no

19 more than two (2) Years in length. Also, except as provided in subdivision (b) of this Article, in

20 order to promote orderly and cost effective contract administration, the terms and conditions in

21 subsequent interim renewal contracts shall be identical to the terms and conditions in the interim

22 renewal contract immediately preceding the subsequent interim renewal contract: Provided,

23 however, That each party preserves the right to propose modification(s) in any interim renewal
8

1 contract other than those described in subdivision (b) of this Article, in which case the parties

2 shall negotiate in good faith appropriate modification(s) to be included in any successive interim

3 renewal contracts. Said modification(s) of each successive interim renewal contract shall be

4 agreed upon within a reasonable time prior to the expiration of the then existing interim renewal

5 contract. Nothing in this Article shall in any way alter the obligation that, upon final completion

6 of the PEIS and any necessary supplemental environmental documentation, the Secretary shall,

7 pursuant to Federal Reclamation law, upon request of the Contractor, enter into a long-term

8 renewal contract for a period of twenty-five (25) Years and may thereafter renew such long-term

9 renewal contracts for successive periods not to exceed twenty-five (25) Years each. The

10 Contractor asserts that Contract No. 4-07-20-W1134 and existing law go beyond the preceding

11 sentence to give it enforceable rights to successive long-term renewal contracts. The Contracting

12 Officer disagrees with that assertion. The parties agree that this interim renewal contract

13 preserves the rights and positions of the parties and that the omission of language in this interim

14 renewal contract setting out the rights asserted by the Contractor to successive renewals is not

15 intended to be, nor shall it be interpreted as, a waiver of any such rights to the extent any such

16 rights are later determined to exist by a court of competent jurisdiction or by mutual agreement of

17 the parties. If a court of competent jurisdiction or the parties by mutual agreement determine that

18 incorporation of such language in this interim renewal contract is necessary to preserve such

19 rights, this interim renewal contract shall be construed as incorporating such language as though

20 fully set forth herein as of the effective date hereof.

21 (b) The parties anticipate that they will engage in good faith negotiations

22 intended to permit the execution of a twenty-five (25) Year long-term renewal contract

23 contemplated by Section 3404 (c) of the CVPIA, hereinafter referred to as a “long-term renewal
9

1 contract”, by the end of the term hereof. The parties recognize the possibility that this schedule

2 may not be met. Accordingly: 

3 (1) In the event (i) the Contractor and Contracting Officer have

4 reached agreement on the terms of the Contractor’s long-term renewal contract or (ii) the

5 Contractor and Contracting Officer have not completed the negotiations on the Contractor’s

6 long-term renewal contract, believe that further negotiations on that contract would be beneficial,

7 and mutually commit to continue to negotiate to seek to reach agreement, but (iii) all

8 environmental documentation required to allow execution of the Contractor’s long-term renewal

9 contract by both parties has not been completed in time to allow execution of the Contractor’s

10 long-term renewal contract by November 30, 2001, then (iv) the parties will expeditiously

11 complete the environmental documentation required of each of them in order to execute the

12 Contractor’s long-term renewal contract at the earliest practicable date. In addition, the

13 Contractor’s then current interim renewal contract will be renewed without change upon the

14 request of either party through the agreed-upon effective date of the Contractor’s long-term

15 renewal contract or, in the absence of agreement on the terms of the Contractor’s long-term

16 renewal contract, through the succeeding February 28.

17 (2) Provided that this interim renewal contract is not subject to

18 renewal under the terms described in subdivision (1) of this Article, if a party determines that the

19 parties have reached an impasse which they have been unable to resolve and which precludes

20 agreement on the long-term renewal contract, that party may notify the other that it has concluded

21 that there is no reasonable likelihood of reaching agreement on the terms of a long-term renewal

22 contract. In the event of such notice, the parties will immediately agree to a schedule and process
10

1 for negotiating the terms (other than any terms that would impair continuity of water supply or

2 continuity of contract) of and executing an interim renewal contract; provided that neither party

3 will propose for inclusion in the interim renewal contract any provision not previously included

4 in an existing interim renewal contract which it had previously proposed for inclusion in the

5 long-term renewal contract and which was the subject of an impasse in the long-term renewal

6 contract negotiations. The schedule will provide for completion of the negotiations of the terms

7 of that contract by February 1, 2002, and for execution of the contract on or about February 15,

8 2002. The parties each acknowledge the right of either party to seek judicial relief in connection

9 with any impasse reached in connection with negotiation of the long-term renewal contract

10 and/or an interim renewal contract that would become effective on or after February 28, 2002.

11 (c) The parties acknowledge that the Contractor asserts that it is entitled as a

12 matter of law to an interim renewal contract of longer duration than twelve (12) months, and that

13 the Contracting Officer asserts that it is under no obligation to provide the Contractor with an

14 interim renewal contract of any particular duration. Accordingly, the parties further acknowledge

15 that (i) the foregoing process represents a mutual accommodation to facilitate their joint desire to

16 proceed with the development of a long-term renewal contract in an expeditious and orderly

17 manner, (ii) they each preserve their respective rights and positions relative to the entitlement of

18 the Contractor to subsequent interim renewal contracts should they become necessary, and the

19 terms thereof, and (iii) their agreement to the process and interim renewal contract terms

20 described above is in no way intended to be, nor will it be interpreted as, a waiver of any such

21 rights or positions, all of which are and will be expressly preserved.
11

1 (d) The omission of language in this interim renewal contract providing for

2 conversion of this interim renewal contract or any subsequent renewals thereof to a repayment

3 contract, pursuant to the Act of July 2, 1956 (70 Stat. 483), shall not prejudice the Contractor's

4 right to assert a right to have such language included in subsequent renewals of this interim

5 renewal contract or to exercise such conversion, all as provided by law, or to negotiate the

6 language regarding such conversion to be included in subsequent renewal contracts.

7 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

8 3. (a) Subject to the provisions set forth in Articles 10 and 11 hereof, and

9 consistent with applicable State water rights, permits and licenses, the Contractor is entitled to,

10 and the Contracting Officer shall be obligated to make available to the Contractor up to 2,413

11 acre-feet of Project Water for municipal and industrial purposes during the term of this interim

12 renewal contract. The Contractor may request and the Contracting Officer shall be obligated to

13 make available to the Contractor an additional 337 acre-feet of Project Water for a total of 2,750

14 acre-feet of Project Water: Provided, That, the requirements of Federal law, if any, which apply

15 to the delivery and use of such additional quantities of Project Water have been met. The

16 quantity of Project Water delivered to the Contractor in accordance with this Article 3(a) in any

17 Year shall be scheduled and paid for pursuant to the provisions of Articles 4 and 7 hereof, and

18 shall not exceed the quantity of Project Water the Contractor intends to put to reasonable

19 beneficial use within the Contractor's Service Area or sold, transferred, or exchanged pursuant to

20 Article 8 during the term of this interim renewal contract.

21
12

1 (b) The Contractor shall utilize the Project Water made available to it pursuant

2 to this interim renewal contract in accordance with all applicable requirements of any Biological

3 Opinion addressing the execution of this interim renewal contract developed pursuant to Section

4 7 of the Endangered Species Act of 1973 as amended, and in accordance with environmental

5 documentation as may be required for specific activities. 

6 (c) The Contractor shall make reasonable and beneficial use of Project Water

7 or other water furnished pursuant to this interim renewal contract. 

8 (d) If the Contracting Officer determines that Project Water, or other water

9 available to the Project, can be made available to the Contractor in addition to the quantity of

10 Project Water made available to the Contractor pursuant to subdivision (a) of this Article, the

11 Contracting Officer shall so notify the Contractor. If the Contractor requests the delivery of any

12 quantity of such water, the Contracting Officer shall make such water available to the Contractor

13 in accordance with applicable statutes, regulations, guidelines and policies.

14 (e) If the Contractor requests permission to reschedule for use during the

15 subsequent Year some or all of the Project Water made available to the Contractor during the

16 current Year or to use, during the current Year, that quantity of Project Water the United States

17 has agreed to make available to the Contractor during the subsequent Year, the Contracting

18 Officer may permit such uses in accordance with applicable statutes, regulations, guidelines and

19 policies.

20 (f) The Contractor's right pursuant to Federal Reclamation law and applicable

21 State law to the beneficial use of water furnished pursuant to this interim renewal contract, any

22 subsequent interim renewal contract and, as described in Article 2(a), any long-term renewal
13

1 contract, shall not be disturbed so long as the Contractor shall fulfill all of its obligations under

2 this interim renewal contract and any such renewal thereof. Nothing in the preceding sentence

3 shall affect the Contracting Officer's ability to impose shortages under Article 11(b) of this

4 interim renewal contract and the applicable provisions of any such renewal thereof.

5 (g) Notwithstanding subdivision (h) of Article 1, Project Water furnished to

6 the Contractor pursuant to this interim renewal contract may be delivered for purposes other than

7 those described in subdivision (h) of Article 1 upon written approval by the Contracting Officer

8 in accordance with the terms and conditions of such approval.

9 TIME FOR DELIVERY OF WATER

10 4. (a) On or about February 15, of each Calendar Year, the Contracting Officer

11 shall declare the amount of Project Water estimated to be made available to the Contractor

12 pursuant to this interim renewal contract for the upcoming Year. The declaration will be updated

13 monthly, as necessary, based on current hydrologic conditions. The Contracting Officer shall

14 make available the forecast of Project operations, with relevant supporting information, upon the

15 written request of the Contractor or its representatives. Upon written request of the Contractor,

16 the Contracting Officer shall provide the basis of the estimate which shall include, but not be

17 limited to, a monthly pumping forecast for the O'Neill Pumping Plant, the projected carryover of

18 Project reservoirs, projected CVPIA impacts, projected Endangered Species Act and all other

19 regulatory impacts.

20 (b) On or before each March 1, the Contractor shall submit to the Contracting

21 Officer and at such other times as necessary, a written schedule, satisfactory to the Contracting

22 Officer, showing the times and quantities of Project Water to be delivered by the United States to
14

1 the Contractor during the upcoming Year pursuant to this interim renewal contract, and,

2 consistent with subdivision (a) of Article 3 herein.

3 (c) Subject to the conditions set forth in subdivision (a), Article 3, the United

4 States shall deliver Project Water to the Contractor in accordance with the initial schedule

5 submitted by the Contractor pursuant to subdivision (b) of this Article, or any revision(s) thereto

6 submitted within a reasonable time prior to the date(s) on which the requested change(s) is/are to

7 be implemented.

8 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

9 5. (a) The Project Water to be furnished to the Contractor pursuant to this

10 interim renewal contract shall be made available to the Contractor at the 16-inch water meter

11 located at the interconnection of the pumping plant discharge line at the water treatment facilities

12 which are located adjacent to the Shasta Dam visitor area, and any additional point or points of

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

14 by the Contracting Officer and the Contractor.

15 (b) The Contracting Officer shall make all reasonable efforts to maintain

16 sufficient flows to furnish Project Water to the Contractor at the design capacity of the pumping

17 station plant minus losses due to the Contractor's treatment facilities and delivery pipe sizes.

18 (c) All Project Water delivered to the Contractor pursuant to this interim

19 renewal contract shall be measured and recorded with equipment furnished, installed, operated

20 and maintained by the Contractor at the point or points of delivery established pursuant to

21 subdivision (a) of this Article. Upon the request of either party to this interim renewal contract,

22 the Contracting Officer shall investigate the accuracy of such measurements and shall take any
15

1 necessary steps to adjust any errors appearing therein. The Contractor shall advise the

2 Contracting Officer on or before the 10th calendar day of each month of the quantity of M&I

3 Water taken during the preceding month.

4 (d) The United States shall not be responsible for the control, carriage,

5 handling, use, disposal, or distribution of Project Water made available to the Contractor

6 pursuant to this interim renewal contract beyond the delivery points specified in subdivision (a)

7 of this Article. The Contractor shall indemnify the United States, its officers, employees, agents

8 and assigns, on account of damage or claim of damage of any nature whatsoever for which there

9 is legal responsibility, including property damage, personal injury or death arising out of or

10 connected with the control, carriage, handling, use, disposal, or distribution of such Project

11 Water beyond such delivery points, except for any damage or claim arising out of (i) acts

12 performed by the United States or any of its officers, employees, agents or assigns, with the

13 intent of creating the situation resulting in any damage or claim, (ii) willful misconduct of the

14 United States or any of its officers, employees, agents or assigns, or (iii) negligence of the

15 United States or any of its officers, employees, agents or assigns. 

16 MEASUREMENT OF WATER WITHIN THE CITY

17 6. (a) The Contractor has implemented a measurement program satisfactory to

18 the Contracting Officer, whereby all surface water delivered within the Contractor's Service Area

19 for municipal and industrial purposes is measured at each municipal and industrial service

20 connection, and all Reclaimed Water from the Contractor's waste treatment facilities, which is

21 applied outside the Contractor's Service Area, is also measured. All water measuring devices or

22 water measuring methods of comparable effectiveness must be acceptable to the Contracting
16

1 Officer. The Contractor shall be responsible for installing, operating, and maintaining and

2 repairing all such measuring devices and implementing all such water measuring methods at no

3 cost to the United States. The Contractor shall use the information obtained from such water

4 measuring devices or water measuring methods to ensure proper management of the water; to bill

5 water users for water delivered by the Contractor; and, if applicable, to record water delivered for

6 municipal and industrial purposes by customer class as defined in its water conservation plan. 

7 Nothing herein contained, however, shall preclude the Contractor from establishing and

8 collecting any charges, assessments or other revenues authorized by California law. The

9 Contractor shall include a summary of its annual surface water deliveries in the annual report

10 described in Article 23(d).

11 (b) All new surface water delivery systems installed within the Contractor's

12 boundaries after the effective date of this contract shall also comply with the measurement

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

14 (c) The Contractor shall inform the Contracting Officer and the State of

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

16 within its boundaries during the previous Year.

17 RATES AND METHOD OF PAYMENT FOR WATER

18 7. (a) The Contractor shall pay the United States in monthly payments as

19 provided in this Article for the quantities of Delivered Water furnished to the Contractor pursuant

20 to this interim renewal contract. Such payments shall consist of the applicable Rates and

21 Charges determined annually in accordance with applicable Federal law and associated
17

1 regulations. The Rates and Charges applicable upon execution of this interim renewal contract

2 are set forth in Exhibit "B".

3 (b) The Contracting Officer shall notify the Contractor of the Rates and

4 Charges as follows:

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

6 shall provide the Contractor the preliminary calculation of the Charges that will be

7 applied for the period October 1, of the current Calendar Year, through September 30, of

8 the following Calendar Year, and identify the statutes, regulations and guidelines used as

9 the basis for such calculations. On or before September 15, of each Calendar Year, the

10 Contracting Officer shall notify the Contractor in writing of the Charges to be in effect

11 during the period October 1, of the current Calendar Year, through September 30, of the

12 following Calendar Year, and such notification shall revise Exhibit "B".

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

14 shall make available to the Contractor an estimate of the Rates of payment for the following Year

15 and the computations and cost allocations upon which those Rates are based. The Contractor

16 shall be allowed not less than two months to review and comment on such computations and cost

17 allocations. By December 31 of each Calendar Year, the Contracting Officer shall provide the

18 Contractor with the final Rates to be in effect for the upcoming Year, and such notification shall

19 revise Exhibit "B". 

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

21 Project Water for each Year pursuant to Article 4(b) of this interim renewal contract, the

22 Contractor shall pay the United States the total amount payable pursuant to the applicable Rate(s)
18

1 for all Project Water scheduled to be delivered pursuant to this interim renewal contract during

2 the first two (2) calendar months of the Year. Before the end of the first month or part thereof of

3 the Year, and before the end of each calendar month thereafter, the Contractor shall pay pursuant

4 to the applicable Rate(s) for all Project Water scheduled to be delivered pursuant to this interim

5 renewal contract during the second month immediately following. Adjustments between the

6 payments for the scheduled amount of Project Water and the appropriate payments for quantities

7 of Delivered Water furnished pursuant to this interim renewal contract each month shall be made

8 before the end of the following month: Provided, That any revised schedule submitted by the

9 Contractor pursuant to Article 4 which increases the amount of Project Water to be delivered

10 pursuant to this interim renewal contract during any month shall be accompanied with

11 appropriate payment for Rates to assure that Project Water is not furnished to the Contractor in

12 advance of such payment. In any month in which the quantity of Delivered Water furnished to

13 the Contractor pursuant to this interim renewal contract equals the quantity of Project Water

14 scheduled and paid for by the Contractor, no additional Project Water shall be made available to

15 the Contractor unless and until payment of Rates for such additional Project Water is made. 

16 Final adjustment between the payments of Rates for the Project Water scheduled and the

17 quantities of Delivered Water furnished during each Year pursuant to its contract shall be made

18 as soon as possible but no later than

19 April 30th of the following Year.

20 (d) The Contractor shall pay all Charges owing for Delivered Water before the

21 end of the month following the month of delivery. Such amounts shall be consistent with the

22 quantities of M&I Water shown in the United States' water delivery report for the subject month. 
19

1 The water delivery report shall be regarded by the Contractor as a bill for the payment of

2 appropriate Charges. Any monthly adjustment for overpayment or underpayment of Charges

3 shall be accomplished through the adjustment of Charges due to the United States in the next

4 month. By March 31, of each Year, the Contractor shall make any additional payment of

5 Charges it is obligated to make for Delivered Water furnished to the Contractor pursuant to its

6 contract for the previous Year. The amount to be paid for past due payment of Charges shall be

7 computed pursuant to Article 17 of this interim renewal contract.

8 (e) The Contractor shall pay for any Project Water provided under Article 3(d)

9 or 3(e) as determined by the Contracting Officer pursuant to applicable statutes, regulations,

10 guidelines and policies.

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

12 interim renewal contract may be paid from any revenues available to the Contractor.

13 (g) Revenues received by the United States pursuant to this interim renewal

14 contract shall be allocated and applied in accordance with Federal Reclamation law, including

15 but not limited to, subsection 3 of Section 1 of the Act of July 2, 1956 (70 Stat. 483), and

16 subsection (f) of Section 3405, subsection (c)(1) of Section 3406 and subsection (d)(2)(A) of

17 Section 3407 of the CVPIA, and the associated regulations, including but not limited to the

18 Project M&I ratesetting policy promulgated pursuant to the Administrative Procedures Act.

19 (h) At the Contractor's request, the Contracting Officer shall provide to the

20 Contractor an accounting of all of the expenses allocated and the disposition of all revenues

21 received pursuant to this interim renewal contract in sufficient detail to allow the Contractor to

22 determine that the allocation of expenses and disposition of all revenues received was
20

1 accomplished in conformance with Federal Reclamation law and the associated regulations. The

2 Contracting Officer and the Contractor shall enter into good faith negotiations to resolve any

3 discrepancies or disputes arising out of said accounting of the Contractor's review thereof.

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

5 interim renewal contract is their mutual goal. Recognizing that experience has demonstrated that

6 mechanisms, policies and procedures used for establishing Rates and Charges, and/or for making

7 and allocating payments, other than those set forth in this Article would be in the mutual best

8 interest of the parties, it is expressly agreed that the parties may enter into agreements for

9 alternative mechanisms, policies and procedures for any of those purposes while this interim

10 renewal contract is in effect without amending this contract.

11 TRANSFERS OR EXCHANGES OF WATER

12 8. The right to Project Water provided for in this interim renewal contract may be

13 sold, transferred, or exchanged to others for beneficial uses within the State of California if such

14 sale, transfer or exchange is authorized by applicable Federal laws, State laws, and applicable

15 guidelines or regulations then in effect. The right to sell, transfer or exchange Project Water

16 shall include, and the Contracting Officer shall apply this Article in a manner that does not

17 impede or restrict, lawful short-term sales, transfers, or exchanges of the type the Contractor

18 historically carried out with approval of the Contracting Officer under Contract No. 4-07-20-

19 W1134. No sale, transfer or exchange of the right to Project Water under this interim renewal

20 contract may take place without the prior written approval of the Contracting Officer.

21

22
21

1 APPLICATION OF PAYMENTS AND ADJUSTMENTS

2 9. (a) The amount of any overpayment by the Contractor shall be applied first to

3 any accrued indebtedness arising out of this interim renewal contract then due and payable by the

4 Contractor. Any amount of such overpayment then remaining shall, at the option of the

5 Contractor, be refunded to the Contractor or credited upon amounts to become due to the United

6 States from the Contractor under the provisions hereof in the following months. With respect to

7 overpayment, such adjustment shall constitute the sole remedy of the Contractor or anyone

8 having or claiming to have the right to the use of any of the water supply provided for herein.

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

10 Contractor pursuant to Article 22 shall be adjusted to reflect the actual costs when the work has

11 been completed. If the advances exceed the actual costs incurred, the difference will be refunded

12 to the Contractor. If the actual costs exceed the Contractor's advances, the Contractor will be

13 billed for the additional costs pursuant to Article 22.

14 TEMPORARY REDUCTIONS--RETURN FLOWS

15 10. (a) Subject to: (i) the authorized purposes and priorities of the Project; and (ii)

16 the obligations of the United States under existing contracts, or renewals thereof, providing for

17 water deliveries from the Project, the Contracting Officer shall make all reasonable efforts to

18 optimize Project Water deliveries to the Contractor as provided in the contract.

19 (b) The United States may temporarily discontinue or reduce the quantity of

20 Project Water to be delivered to the Contractor as herein provided for the purposes of

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

22 any part thereof necessary for the delivery of Project Water to the Contractor, but so far as
22

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

2 discontinuance or reduction, except in case of emergency, in which case no notice need be given: 

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

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

5 if requested by the Contractor, the United States will, if possible, deliver the quantity of Project

6 Water which would have been delivered hereunder in the absence of such discontinuance or

7 reduction: Provided, further, That with respect to any quantity of Project Water not delivered

8 after a discontinuance or reduction the Contractor shall be relieved of its scheduling and payment

9 obligations for such quantity of Project Water.

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

11 derived from water delivered to the Contractor hereunder which escapes or is discharged beyond

12 the Contractor's Service Area: Provided, That this shall not be construed as claiming for the

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

14 pursuant to this interim renewal contract within the Contractor's Service Area by the Contractor

15 or those claiming by, through, or under the Contractor. If approved, in writing, by the

16 Contracting Officer, Reclaimed Water from the Contractor's waste treatment facilities shall not

17 be considered return flow for purposes of this contract: Provided, That such water is applied to

18 land(s) for beneficial use adjacent to the Contractor's boundaries, or to such other locations for

19 consumptive use, as may be agreed upon in writing between the Contractor and the Contracting

20 Officer, for consumptive use, and if such application is for the sole purpose of disposal of such

21 water in an economically and environmentally acceptable manner. Such water shall not be

22 considered as exported or transferred Project Water.
23

1 WATER SHORTAGE AND APPORTIONMENT 

2 11. (a) The United States shall use all reasonable means in its operation and

3 management of the Project to make full supplies of Project Water specified in this contract

4 available to the Contractor during each Year. If there is a reduction in the total water supply

5 available to the Contractor during any Year because of errors in physical operations of the

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

7 taken by the Contracting Officer to meet legal obligations, no liability shall accrue against the

8 United States or any of its officers, agents, or employees for any damages, direct or indirect,

9 arising therefrom, so long as actions based upon the opinions or determinations of the

10 Contracting Officer are consistent with the standards in Article 16.

11 (b) During any Year in which the Contracting Officer determines that the

12 United States will be unable to make the full supply of Project Water specified in this contract

13 available to the Contractor, the Contracting Officer shall, to the extent permitted by applicable

14 law and existing contracts, declare that a water shortage exists and the basis for the shortage, and

15 shall apportion the available Project Water among the water users of the Project by reducing the

16 quantities of Project Water made available to such users: Provided, That no reduction shall be

17 made to M&I water made available to the Contractor unless and until reductions have also been

18 imposed on irrigation users receiving water from the integrated Project Water supply,

19 irrespective of water allocations as determined by the Contracting Officer made to prevent undue

20 hardship: and Provided Further, That in no Year of shortage shall the Contracting Officer reduce

21 the quantity of M&I water made available to the Contractor by more than 25 percent of historical

22 use, as defined in subdivision (d) of this Article, unless the type of water shortage emergency
24

1 condition described in subdivision (e) of this Article exists. The quantity of Project Water made

2 available to the Contractor shall be determined in accordance with the following subdivisions of

3 this Article.

4 (c) Regulatory Restrictions. During any Year in which the Contracting

5 Officer determines that the United States will be unable to provide the full supply of Project

6 Water specified in this contract, and the basis of that determination is regulatory restrictions on

7 the delivery of Project Water to the Contractor, the minimum amount of water the Contracting

8 Officer will make available to the Contractor for M&I use shall be 85 percent of historical use, as

9 defined below.

10 (d) Water Shortages. During any Year in which the Contracting Officer

11 determines that the United States will be unable to provide the fully supply of Project Water

12 specified in this contract, and the basis of this determination is a shortage of water, the quantity

13 of water the Contracting Officer will make available to the Contractor for M&I use shall be a

14 percentage, of historical use, as defined below. The amount of water made available to the

15 Contractor for M&I use pursuant to this subdivision shall not be less that 75 percent of historical

16 use. Historical use shall be the average quantity of Project Water put to beneficial use within the

17 Service Area during the last three years of water deliveries not affected by water shortages

18 adjusted for growth.

19 (e) Minimum Public Health. During any Year in which the Contracting

20 Officer determines that the United States will be unable to provide the full supply of Project

21 Water specified in this contract to the Contractor, and the basis of that determination is that the

22 Project Water supply is so severe that shortages beyond those in subdivision (b) are deemed
25

1 necessary for Project M&I users, the Contracting Officer shall declare that a state of water

2 shortage emergency exists with respect to water available to M&I users. A state of water

3 shortage emergency shall not be declared for M&I users unless Project agricultural water users'

4 allocation is being established on a case-by-case basis for sustaining the life of trees and vines. 

5 During a water shortage emergency, M&I water service contractor allocations, including the

6 Contractor, shall be sufficient to satisfy public health and safety requirements, as calculated by

7 the Contractor, pursuant to its then current water shortage contingency plan.

8 (f) Upon filing of the Record of Decision associated with the environmental

9 documentation mandated by Section 3409 of P.L. 102-575, or upon negotiation of the next

10 successive interim renewal, whichever is earlier in time, the Contractor and the Contracting

11 Officer shall renegotiate the provisions of this Article. The renegotiation of this Article will be

12 for the purpose of modifying this Article consistent with the then existing Project shortage

13 policy.

14 COMPLIANCE WITH FEDERAL RECLAMATION LAW

15 12. This interim renewal contract shall be implemented in accordance with all

16 applicable provisions of Federal Reclamation law, as amended and supplemented.

17 WATER AND AIR POLLUTION CONTROL

18 13. The Contractor, in carrying out this contract, shall comply with all applicable

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

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

21 authorities.

22

23 HAZARDOUS MATERIAL

24

25 14. With respect both to this interim renewal contract and, anything therein to

26
26

1 the contrary not withstanding, Agreement No. 6-FC-20-03740;

2

3 (a) The Contractor shall comply with all applicable Federal, State, and local

4 laws and regulations, and Reclamation policies and instructions, existing or hereafter enacted or

5 promulgated, concerning any hazardous material that will be used, produced, transported, stored

6 or disposed of on or in lands, waters or facilities, owned by the United States or administered by

7 Reclamation.

8

9 (b) "Hazardous material" means any substance, pollutant or contaminant listed

10 as hazardous under the Comprehensive Environmental Response, Compensation, and Liability

11 Action of 1980, as amended, 42, U.S.C. 1901, et seq., and the regulations promulgated pursuant

12 to that Act.

13

14 (c) The Contractor may not allow contamination of lands, waters, or facilities

15 owned by the United States or administered by Reclamation by hazardous materials, thermal

16 pollution, refuse, garbage, sewage effluent, industrial waste, petroleum products, mine tailings,

17 mineral salts, pesticides (including, but not limited to, the misuse of pesticides, pesticide

18 containers or any other pollutants).

19

20 (d) The Contractor shall report to Reclamation, within 12 hours of its

21 occurrence, any event which may or does result in pollution or contamination adversely affecting

22 lands, water or facilities owned by the United States or administered by Reclamation.

23

24 (e) Violation of any of the provisions of this Article shall constitute grounds

25 for immediate termination of this contract. Furthermore, such violations shall make the

26 Contractor liable for the cost of full and complete remediation and/or restoration of any Federal,

27 governmental, or private resources or facilities that are adversely affected as a result of the

28 violation.

29

30 (f) The Contractor agrees to include the provision contained in paragraphs (a)

31 through (e) of this Article in any subcontract or third party contract it may enter into pursuant to

32 this contract.

33

34 (g) Reclamation agrees to provide information necessary for the Contractor,

35 using reasonable diligence, to comply with the provision of this Article.

36

37 QUALITY OF WATER

38

39 15. (a) Project facilities used to make available and deliver Project Water to the

40 Contractor pursuant to this interim renewal contract shall be operated and maintained to enable

41 the United States to make available and deliver Project Water to the Contractor in accordance
27

1 with the water quality standards specified in subsection 2(b) of the Act of August 26, 1937 (50

2 Stat. 865), as added by Section 101 of the Act of October 27, 1986 (100 Stat. 3050) or other

3 existing Federal laws. The United States is under no obligation to construct or furnish water

4 treatment facilities to maintain or to better the quality of Project Water furnished to the

5 Contractor pursuant to this contract. The United States does not warrant the quality of Project

6 Water made available and delivered to the Contractor pursuant to this contract.

7 (b) The operation and maintenance of Project facilities shall be performed in

8 such manner as is practicable to maintain the quality of raw water made available through such

9 facilities at the highest level reasonably attainable as determined by the Contracting Officer. The

10 Contractor shall be responsible for compliance with all State and Federal water quality standards

11 applicable to surface and subsurface agricultural drainage discharges generated through the use of

12 Federal or Contractor facilities or Project Water provided by the Contractor within the

13 Contractor's Service Area. This Article shall not affect or alter any legal obligations of the

14 Secretary to provide drainage services.

15 OPINIONS AND DETERMINATIONS

16

17 16. (a) Where the terms of this interim renewal contract provide for actions to be

18 based upon the opinion or determination of either party to this contract, said terms shall not be

19 construed as permitting such action to be predicated upon arbitrary, capricious, or unreasonable

20 opinions or determinations. Both parties, notwithstanding any other provisions of this contract,

21 expressly reserve the right to seek relief from and appropriate adjustment, including monetary

22 damages, for any such arbitrary, capricious or unreasonable opinion or determination. Each

23 opinion or determination by either party shall be provided in a timely manner.
28

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

2 necessary to administer this interim renewal contract that are consistent with the expressed and

3 implied provisions of this contract, the laws of the United States and the State of California, and

4 the rules and regulations promulgated by the Secretary of the Interior. Such determinations shall

5 be made in consultation with the Contractor to the extent reasonably practicable.

6 CHARGES FOR DELINQUENT PAYMENTS

7 17. (a) The Contractor shall be subject to interest, administrative and penalty

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

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

10 the due date. When a payment becomes 60 days delinquent, the Contractor shall pay an

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

12 When a payment is delinquent 90 days or more, the Contractor shall pay an additional penalty

13 charge of 6 percent per year for each day the payment is delinquent beyond the due date. Further,

14 the Contractor shall pay any fees incurred for debt collection services associated with a

15 delinquent payment.

16

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

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

19 the interest rate of 0.5 percent per month prescribed by Section 6 of the Reclamation Project Act

20 of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due date and

21 remain fixed for the duration of the delinquent period.

22

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

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

25 accrued interest, and finally to the overdue payment.

26

27 EQUAL OPPORTUNITY

28

29 18. During the performance of this contract, the Contractor agrees as follows:

30

31 (1) The Contractor will not discriminate against any employee or applicant for

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

33 take affirmative action to ensure that applicants are employed, and that employees are

34 treated during employment, without regard to their race, color, religion, sex, or national

35 origin. Such action shall include, but not be limited to, the following: Employment,

36 upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or

37 termination, rates of payment or other forms of compensation; and selection for training,
29

1 including apprenticeship. The Contractor agrees to post in conspicuous places, available

2 to employees and applicants for employment, notices to be provided by the Contracting

3 Officer setting forth the provisions of this nondiscrimination clause.

4

5 (2) The Contractor will, in all solicitations or advertisements for employees

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

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

8 or national origin.

9

10 (3) The Contractor will send to each labor union or representative of workers

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

12 notice, to be provided by the Contracting Officer, advising the said labor union or

13 workers' representative of the Contractor's commitments under Section 202 of Executive

14 Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous

15 places available to employees and applicants for employment.

16

17 (4) The Contractor will comply with all provisions of Executive Order 

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

19 orders of the Secretary of Labor.

20

21 (5) The Contractor will furnish all information and reports required by said

22 amended Executive Order and by the rules, regulations, and orders of the Secretary of

23 Labor, or pursuant thereto, and will permit access to its books, records, and accounts by

24 the Contracting Officer and the Secretary of Labor for purposes of investigation to

25 ascertain compliance with such rules, regulations, and orders.

26

27 (6) In the event of the Contractor's noncompliance with the nondiscrimination

28 clauses of this contract or with any of the said rules, regulations, or orders, this contract

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

30 be declared ineligible for further Government contracts in accordance with procedures

31 authorized in said amended Executive Order, and such other sanctions may be imposed

32 and remedies invoked as provided in said Executive Order, or by rule, regulation, or order

33 of the Secretary of Labor, or as otherwise provided by law.

34

35 (7) The Contractor will include the provisions of paragraphs (1) 

36 through (7) in every subcontract or purchase order unless exempted by the rules,

37 regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of said

38 amended Executive Order, so that such provisions will be binding upon each

39 subcontractor or vendor. The Contractor will take such action with respect to any

40 subcontract or purchase order as may be directed by the Secretary of Labor as a means of

41 enforcing such provisions, including sanctions for noncompliance: Provided, however,

42 That in the event the Contractor becomes involved in, or is threatened with, litigation
30

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

2 the United States to enter into such litigation to protect the interests of the United States.

3

4 GENERAL OBLIGATION--BENEFITS

5 CONDITIONED UPON PAYMENT

6

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

8 this contract is a general obligation of the Contractor notwithstanding the manner in which the

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

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

11

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

13 to receiving benefits under this contract. The United States shall not make water available to the

14 Contractor through project facilities during any period in which the Contractor may be in arrears

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

16 water made available pursuant to this contract for lands or parties which are in arrears in the

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

18

19 COMPLIANCE WITH CIVIL RIGHTS LAWS

20 AND REGULATIONS

21

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

23 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the

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

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

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

27

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

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

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

31 receiving financial assistance from the Bureau of Reclamation. By executing this contract, the

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

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

34

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

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

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

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

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

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

41 agreements made in this Article, and that the United States reserves the right to seek judicial

42 enforcement thereof.

43
31

1 PRIVACY ACT COMPLIANCE

2

3 21. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a)

4 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et

5 seq.) in maintaining landholder acreage certification and reporting records, required to be

6 submitted to the Contractor for compliance with sections 206 and 228 of the Reclamation

7 Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.10.

8

9 (b) With respect to the application and administration of the criminal penalty

10 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees

11 responsible for maintaining the certification and reporting records referenced in (a) above are

12 considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m).

13

14 (c) The Contracting Officer or a designated representative shall provide the

15 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau

16 of Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--

17 Interior, Reclamation-31) which govern the maintenance, safeguarding, and disclosure of

18 information contained in the landholder's certification and reporting records.

19

20 (d) The Contracting Officer shall designate a full-time employee of the Bureau

21 of Reclamation to be the System Manager who shall be responsible for making decisions on

22 denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The

23 Contractor is authorized to grant requests by individuals for access to their own records.

24

25 (e) The Contractor shall forward promptly to the System Manager each

26 proposed denial of access under 43 CFR 2.64; and each request for amendment of records filed

27 under 43 CFR 2.71; notify the requester accordingly of such referral; and provide the System

28 Manager with information and records necessary to prepare an appropriate response to the

29 requester. These requirements do not apply to individuals seeking access to their own

30 certification and reporting forms filed with the Contractor pursuant to 43 CFR 426.10, unless the

31 requester elects to cite the Privacy Act as a basis for the request.

32

33 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

34

35 22. In addition to all other payments to be made by the Contractor pursuant to this

36 contract, the Contractor shall pay to the United States, within sixty (60) days after receipt of a bill

37 and detailed statement submitted by the Contracting Officer to the Contractor for such specific

38 items of direct cost incurred by the United States for work requested by the Contractor associated

39 with this interim renewal contract plus a percentage of such direct costs for administrative and
32

1 general overhead in accordance with applicable Bureau of Reclamation policy and procedures. 

2 All such amounts referred to in this Article shall not exceed the amount agreed to in writing in

3 advance by the Contractor. This Article shall not apply to costs for routine contract

4 administration.

5 WATER CONSERVATION

6 23. (a) Prior to the delivery of water provided from or conveyed through Federally

7 constructed or Federally financed facilities pursuant to this contract, the Contractor shall be

8 implementing an effective water conservation program based on the Contractor's water

9 conservation plan that has been determined by the Contracting Officer to meet the conservation

10 and efficiency criteria established under Federal law. The water conservation program shall

11 contain definite water conservation objectives, appropriate economically feasible water

12 conservation measures, and time schedules for meeting those objectives.

13 (b) Should the combined amount of M&I Water delivered pursuant to

14 subdivision (a) of Article 3 during the term of this interim renewal contract equal or exceed

15 2,000 acre-feet, the Contractor shall implement the Best Management Practices identified by and

16 the time frames issued by the California Urban Water Conservation Council unless any such

17 practice is determined by the Contracting Officer to be inappropriate for the Contractor.

18 ( c) As part of the water conservation program, the Contractor shall develop

19 and be implementing a tiered block water pricing program that promotes conservation and the

20 efficient management of Project Water during the term of this contract. Such pricing program for

21 Project Water shall take into account all relevant circumstances, including without limitation,

22 water shortages imposed under this interim renewal contract and the availability and cost of the
33

1 Contractor's and individual water user's non-Project alternative sources of supply, including

2 ground water and other non-Project water supplies, so that the Contractor's pricing structure

3 provides incentives for conservation and the efficient management of overall water supply

4 available to water users served by the Contractor. Provided, That no such tiered block water

5 pricing program need be implemented by the Contractor if the Contracting Officer determines,

6 based on information provided by the Contractor, that (i) such a pricing structure will not result

7 in significant conservation of water available for use within the Contractor's service area,

8 including ground water or (ii) other pricing program, conservation or management measures are

9 more appropriate and/or will result in comparable or better conservation of the water supplies

10 available within the Contractor's boundaries. Provided further, If the Contractor fails to, or elects

11 not to, comply with this subdivision of Article 23, then any subsequent interim renewal contract

12 shall contain a tiered pricing contractual provision pursuant to subsection (d) of Section 3405 of

13 the CVPIA.

14 (d) The Contractor shall submit to the Contracting Officer by 

15 December 31, of each Calendar Year, an annual report on the status of its implementation of the

16 water conservation program.

17 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

18 24. The provisions of this interim renewal contract shall not be applicable to or affect

19 water or water rights now owned or hereafter acquired by the Contractor or any user of such

20 water within the Contractor's Service Area from other than the United States by the Contractor. 

21 Any such water shall not be considered Project Water under this contract. In addition, this

22 interim renewal contract shall not be construed as limiting or curtailing any rights which the
34

1 Contractor or any water user within the Contractor's Service Area acquires or has available under

2 any other contract pursuant to the Federal Reclamation law.

3 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

4 25. The expenditure or advance of any money or the performance of any obligation of

5 the United States under this contract shall be contingent upon appropriation or allotment of

6 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any

7 obligations under this contract. No liability shall accrue to the United States in case funds are not

8 appropriated or allotted.

9

10 BOOKS RECORDS AND REPORTS

11

12 26. The Contractor shall establish and maintain accounts and other books and records

13 pertaining to administration of the terms and conditions of this contract, including: the

14 Contractor's financial transactions, water supply data, and Project land and right-of-way

15 agreements; the water users' land-use (crop census), landownership, land-leasing and water use

16 data; and other matters that the Contracting Officer may require. Reports thereon shall be

17 furnished to the Contracting Officer in such form and on such date or dates as the Contracting

18 Officer may require. Subject to applicable Federal laws and regulations, each party to this

19 contract shall have the right during office hours to examine and make copies of the other party's

20 books and records relating to matters covered by this contract.

21

22 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

23

24 27. (a) The provisions of this contract shall apply to and bind the successors and

25 assigns of the parties hereto, but no assignment or transfer of this contract or any right or interest

26 therein shall be valid until approved in writing by the Contracting Officer.

27

28 (b) The assignment of any right or interest in this interim renewal contract by

29 either party shall not interfere with the rights or obligations of the other party to this interim

30 renewal contract absent the written concurrence of said other party.

31 SEVERABILITY

32 28. In the event that a person or entity who is neither (i) a party to a Project interim

33 renewal contract, nor (ii) a person or entity that receives Project Water from a party to a Project

34 interim renewal contract, nor (iii) an association or other form of organization whose primary
35

1 function is to represent parties to Project interim renewal contracts, brings an action in a court of

2 competent jurisdiction challenging the legality or enforceability of a provision included in this

3 interim renewal contract and said person, entity, association, or organization obtains a final court

4 decision holding that such provision is legally invalid or unenforceable and the Contractor has

5 not intervened in that lawsuit in support of the plaintiff(s), the parties to this interim renewal

6 contract shall use their best efforts to (i) within thirty (30) days of the date of such final court

7 decision identify by mutual agreement the provisions in this interim renewal contract which must

8 be revised, and (ii) within three (3) months thereafter promptly agree on the appropriate

9 revision(s). The time periods specified above may be extended by mutual agreement of the

10 parties. Pending the completion of the actions designated above, to the extent it can do so

11 without violating any applicable provisions of law, the United States shall continue to make the

12 quantities of Project Water specified in this interim renewal contract available to the Contractor

13 pursuant to the provisions of this interim renewal contract which were not found to be legally

14 invalid or unenforceable in the final court decision.

15 OFFICIALS NOT TO BENEFIT

16 29. No Member of or Delegate to Congress, Resident Commissioner or official of the

17 Contractor shall benefit from this contract other than as a water user or landowner in the same

18 manner as other water users or landowners.

19

20 CHANGES IN CONTRACTOR'S BOUNDARIES

21

22 30. While this contract is in effect, no change may be made in the Contractor's

23 boundaries, by inclusion or exclusion of lands, dissolution, consolidation, merger or otherwise,

24 except upon the Contracting Officer's written consent.

25

26 NOTICES

27

28 31. Any notice, demand, or request authorized or required by this contract shall be

29 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or

30 delivered to the Area Manager, Bureau of Reclamation, Northern California Area Office, 16349

31 Shasta Dam Boulevard, Shasta Lake, California 96019-8400, and on behalf of the United States,
36

1 when mailed, postage prepaid, or delivered to the City Mayor of the City of Shasta Lake, PO Box

2 777, 1650 Stanton Drive, Shasta Lake, California 96019. The designation of the addresseeor the

3 address may be changed by notice given in the same manner as provided in this Article for other

4 notices.
1 IN WITNESS WHEREOF, the parties hereto have executed this interim renewal

2 contract as of the day and year first above written.

3

4 THE UNITED STATES OF AMERICA

5

6

7

8 By: /s/ Lowell F. Ploss 

9 Acting Regional Director, Mid-Pacific Region

10 Bureau of Reclamation

11

12

13

14 (SEAL) CITY OF SHASTA LAKE

15

16

17

18 By: /s/ Jim Cain 

19 Mayor City Manager

20

21

22 Attest:

23

24

25

26 /s/ Rae Morrow 

27 City Clerk

APPROVED AS TO LEGAL

FORM AND SUFFICIENCY

/s/ James E. Turner

OFFICE OF REGIONAL SOLICITOR

DEPARTMENT OF THE INTERIOR