M&I Only 

SCC Draft 10/22-2004 

SCC Draft 09/30-2004 

SCC Draft 08/19-2004 

SCC Draft 01/05-2004 

R.O. Draft 09/23-2003 CVP M&I Form of Contract 

R.O. Draft 08/19-2004 San Luis Unit Form of Contract 

Contract No. 

 14-06-200-4619A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

CITY OF AVENAL 

PROVIDING FOR PROJECT WATER SERVICE

FROM SAN LUIS UNIT AND DELTA DIVISION 

Table of Contents

Article No. Title Page No.

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

 Explanatory Recitals ............................................................................................2-5 

 1 Definitions ...........................................................................................................5-9 

 2 Term of Contract..............................................................................................10-11 

 3 Water to be Made Available and Delivered to the Contractor ........................11-15 

 4 Time for Delivery of Water .............................................................................15-16 

 5 Point of Diversion and Responsibility for Distribution of Water....................16-18 

 6 Measurement of Water Within the Contractor’s Service Area........................18-20 

 7 Rates and Method of Payment for Water.........................................................20-26 

 8 Non-Interest Bearing Operation and Maintenance Deficits ................................. 26 

 9 Sales, Transfers, or Exchanges of Water .........................................................26-28 

 10 Application of Payments and Adjustments......................................................28-29 

 11 Temporary Reductions--Return Flows ............................................................29-30 

 12 Constraints on the Availability of Water .........................................................30-31 

 13 Unavoidable Groundwater Percolation................................................................. 31 

 14 Rules and Regulations .......................................................................................... 31 

 15 Water and Air Pollution Control........................................................................... 31 

 16 Quality of Water ................................................................................................... 32 

 17 Water Acquired by the Contractor Other Than From the United States .........32-34 

 18 Opinions and Determinations ..........................................................................34-35
Contract No. 14-06-200-4619A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 19 Coordination and Cooperation.........................................................................35-36 

 20 Charges for Delinquent Payments ........................................................................ 37 

 21 Equal Opportunity............................................................................................37-38 

 22 General Obligation--Benefits Conditioned Upon Payment .............................38-39 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 39 

 24 Privacy Act Compliance ....................................................................................... 39 

 25 Contractor to Pay Certain Miscellaneous Costs ..............................................39-40 

 26 Water Conservation .........................................................................................40-41 

 27 Existing or Acquired Water or Water Rights...................................................41-42 

 28 Operation and Maintenance by San Luis & Delta-Mendota Water Authority 42-44 

 28.1 Operation and Maintenance by California Department of Water Resources ..44-45 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 46 

 30 Books, Records, and Reports................................................................................ 46 

 31 Assignment Limited--Successors and Assigns Obligated ...............................46-47 

 32 Severability ........................................................................................................... 47 

 33 Resolution of Disputes.......................................................................................... 48 

 34 Officials Not to Benefit......................................................................................... 48 

 35 Changes in Contractor’s Service Area.............................................................48-49 

 36 Federal Laws......................................................................................................... 49 

 37 Notices .................................................................................................................. 49

 38 Confirmation of Contract...................................................................................... 49 

 Signature Page ...................................................................................................... 50 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
SCC Draft 10/22-2004 

SCC Draft 09/30-2004 

SCC Draft 08/19-2004 

SCC Draft 01/05-2004 

R.O. Draft 09/23-2003 CVP M&I Form of Contract 

R.O. Draft 08/19-2004 San Luis Unit Form of Contract 

Contract No. 

 14-06-200-4619A-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 CITY OF AVENAL

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM SAN LUIS UNIT AND DELTA DIVISION

10 THIS CONTRACT, made this _____ day of ____________________, 2005, in pursuance 

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

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

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

14 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 (100 Stat. 

15 3050), as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all collectively 

16 hereinafter referred to as Federal Reclamation law, between THE UNITED STATES OF AMERICA, 

17 hereinafter referred to as the United States, and CITY OF AVENAL, hereinafter referred to as the 

18 Contractor, a public agency of the State of California, duly organized, existing, and acting pursuant to 

19 the laws thereof, with its principal place of business in California; 

20 WITNESSETH, That: 
Contract No. 14-06-200-4619A-LTR1 

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21 EXPLANATORY RECITALS

[1st 22 ] WHEREAS, the United States has constructed and is operating the Central Valley 

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

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

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

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

27 San Joaquin River and their tributaries; and 

[2nd 28 ] WHEREAS, the United States constructed the Delta Division Facilities, including the 

29 San Luis Unit facilities (which include the San Luis Canal and Dos Amigos Pumping Plant), which 

30 will be used in part for the furnishing of water to the Contractor pursuant to the terms of this 

31 Contract; and 

[3rd 32 ] WHEREAS, the rights to Project Water were acquired by the United States pursuant 

33 to California law for operation of the Project; and 

34 (3.1) WHEREAS, on June 23, 1986, the Contractor assumed Contract 

35 No. 14-06-200-4619A between the United States of America and Avenal Community Services 

36 District; and 

[4th 37 ] WHEREAS, the Contractor and the United States entered into Contract 

38 No. 14-06-200-4619A, which established terms for the delivery to the Contractor of Project Water 

39 from November 29, 1969, through December 31, 2008, hereinafter referred to as the Existing 

40 Contract; and 
Contract No. 14-06-200-4619A-LTR1 

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 [5th 41 ] WHEREAS, the United States and the Contractor have pursuant to Subsection 

42 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into a 

43 binding agreement identified as Binding Agreement No. 14-06-200-4619A-BA, which sets out the 

44 terms pursuant to which the Contractor agreed to renew the Existing Contract before the expiration 

45 date after completion of the Programmatic Environmental Impact Statement (PEIS) and other 

46 appropriate environmental documentation and negotiation of a renewal contract; and which also sets 

47 out the consequences of a subsequent decision not to renew; and 

[6th 48 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal the 

49 Existing Contract following completion of appropriate environmental documentation, including a 

50 PEIS pursuant to the National Environmental Policy Act (NEPA) analyzing the direct and indirect 

51 impacts and benefits of implementing the CVPIA and the potential renewal of all existing contracts 

52 for Project Water; and 

[7th 53 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

[8th 55 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

[9th 58 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

59 its obligations under the Existing Contract; and 

[10th 60 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

61 Officer that the Contractor has utilized the Project Water supplies available to it for reasonable and 
Contract No. 14-06-200-4619A-LTR1 

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62 beneficial use and/or has demonstrated projected future demand for water use such that the 

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

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

[11th 65 ] WHEREAS, water obtained from the Central Valley Project has been relied upon by 

66 urban areas within California for more than 50 years, and is considered by the Contractor as an 

67 essential portion of its water supply; and 

68 [11.1] WHEREAS, at the time of execution of this Contract, the United States is the sole 

69 source of water supply to the Contractor; and 

[12th 70 ] WHEREAS, the economies of regions within the Central Valley Project, including the 

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

72 Central Valley Project; and 

[13th 73 ] WHEREAS, in the CALFED Programmatic Record of Decision, dated August 28, 

74 2000, the United States and the State of California adopted a general target of continuously 

75 improving Delta water quality for all uses. The CALFED Agencies’ target for providing safe, 

76 reliable, and affordable drinking water in a cost-effective way, is to achieve either: (a) average 

77 concentrations at Clinton Forebay and other southern and central Delta drinking water intakes of 50 

78 ug/L bromide and 3.0 mg/L total organic carbon, or (b) an equivalent level of public health protection 

79 using a 

80 cost-effective combination of alternative source waters, source control and treatment technologies; 

81 and

82 [14th] WHEREAS, the parties intend by this Contract to develop a more cooperative 
Contract No. 14-06-200-4619A-LTR1 

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83 relationship in order to achieve their mutual goals; and 

84 [14.1] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

86 of the Project as required by law; to guard reasonably against Project Water shortages; to achieve a 

87 reasonable balance among competing demands for use of Project Water; and to comply with all 

88 applicable environmental statutes, all consistent with the legal obligations of the United States 

89 relative to the Project; and 

[15th 90 ] WHEREAS, the Contractor has utilized or may utilize transfers, contract assignments, 

91 rescheduling and conveyance of Project Water and non-Project water under this Contract as tools to 

92 minimize the impacts of Conditions of Shortage and to maximize the beneficial use of water; and 

93 [15.1] WHEREAS, the parties desire and intend that this Contract not provide a disincentive 

94 to the Contractor in continuing to carry out the beneficial activities set out in the Explanatory Recital 

95 immediately above; and 

[16th 96 ] WHEREAS, the United States and the Contractor are willing to enter into this 

97 Contract pursuant to Federal Reclamation law on the terms and conditions set forth below; 

98 NOW, THEREFORE, in consideration of the mutual and dependent covenants herein 

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

100 DEFINITIONS

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

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

103 (a) “Calendar Year” shall mean the period January 1 through December 31, both 
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104 dates inclusive; 

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

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

107 by the Contracting Officer pursuant to this Contract; 

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

109 any Year such that the Contracting Officer is unable to deliver sufficient water to meet the Contract 

110 Total; 

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

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

113 regulation; 

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

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

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

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

118 which may be modified from time to time in accordance with Article 35 of this Contract without 

119 amendment of this Contract; 

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

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

122 (g.1) “Delta Division Facilities” shall mean those existing and future Project 

123 facilities in and south of the Sacramento-San Joaquin Rivers Delta, including, but not limited to, the 

124 Tracy Pumping Plant, the O’Neill Forebay, the O’Neill Pumping/Generating Plant, and the San Luis 
Contract No. 14-06-200-4619A-LTR1 

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125 Reservoir, used to divert, store, and convey water to those Project Contractors entitled to receive 

126 water conveyed through the Delta-Mendota Canal; 

127 (h-i) Omitted; 

128 (j) "Full Cost Rate" shall mean an annual rate, as determined by the Contracting 

129 Officer that shall amortize the expenditures for construction properly allocable to the Project 

130 Irrigation or M&I functions, as appropriate, of facilities in service including all operation and 

131 maintenance deficits funded, less payments, over such periods as may be required under Federal 

132 Reclamation law, or applicable contract provisions. Interest will accrue on both the construction 

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

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

135 calculated in accordance with subsections 202(3)(B) and (3)(C) of the RRA. The Full-Cost Rate 

136 includes actual operation, maintenance, and replacement costs consistent with Section 426.2 of the 

137 Rules and Regulations for the RRA; 

138 (k-l) Omitted; 

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

140 used primarily in the production of agricultural crops or livestock, including domestic use incidental 

141 thereto, and watering of livestock; 

142 (n) Omitted; 

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

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

145 use and purposes such as the watering of landscaping or pasture for animals (e.g., horses) which are 
Contract No. 14-06-200-4619A-LTR1 

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146 kept for personal enjoyment or water delivered to landholdings operated in units of less than 

147 five acres unless the Contractor establishes to the satisfaction of the Contracting Officer that the use 

148 of water delivered to any such landholding is a use described in subdivision (m) of this Article; 

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

150 delivery of M&I Water; 

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

152 care, control, operation, repair, replacement (other than Capital replacement), and maintenance of 

153 Project facilities; 

154 (r) “Operating Non-Federal Entity” shall mean the entity(ies), its (their) 

155 successors or assigns, which has (have) the obligation to operate and maintain all or a portion of the 

156 Delta Division Facilities pursuant to written agreement(s) with the United States. When this Contract 

157 was entered into, the Operating Non-Federal Entity(ies) was (were) the San Luis & Delta-Mendota 

158 Water Authority, and with respect to San Luis Unit facilities, the California Department of Water 

159 Resources; (s) “Project” shall mean the Central Valley Project owned by the United States and 

160 managed by the Department of the Interior, Bureau of Reclamation; 

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

162 for Project Water from the Project with the United States pursuant to Federal Reclamation law; 

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

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

165 with the terms and conditions of water rights acquired pursuant to California law; 
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166 (v) “Rates” shall mean the payments determined annually by the Contracting 

167 Officer in accordance with the then current applicable water ratesetting policies for the Project, as 

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

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

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

171 contract(s); 

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

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

174 through any agency of the Department of the Interior; 

175 (y) “Tiered Pricing Component” shall be the incremental amount to be paid for 

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

177 (z) “Water Delivered” or “Delivered Water” shall mean Project Water diverted for 

178 use by the Contractor at the point(s) of delivery approved by the Contracting Officer; 

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

180 that can be delivered to the Contractor for the upcoming Year as declared by the Contracting Officer, 

181 pursuant to subdivision (a) of Article 4 of this Contract; 

182 (bb) “Water Scheduled” shall mean Project Water made available to the Contractor 

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

184 Officer, pursuant to subdivision (b) of Article 4 of this Contract; and 
Contract No. 14-06-200-4619A-LTR1 

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

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

187 TERM OF CONTRACT

188 2. (a) This Contract shall be effective March 1, 2005, through February 28, 2045. 

189 This Contract, when effective, supersedes the Existing Contract. In the event the Contractor wishes 

190 to renew the Contract beyond February 28, 2045, the Contractor shall submit a request for renewal in 

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

192 (b) Omitted. 

193 (c) This Contract, insofar as it pertains to the furnishing of M&I Water to the 

194 Contractor, shall be renewed for successive periods of up to 40 years each, which periods shall be 

195 consistent with the then-existing Reclamation-wide policy, under terms and conditions mutually 

196 agreeable to the parties and consistent with Federal and State law. The Contractor shall be afforded 

197 the opportunity to comment to the Contracting Officer on the proposed adoption and application of 

198 any revised policy applicable to the delivery of M&I Water that would limit the term of any 

199 subsequent renewal contract with the Contractor for the furnishing of M&I Water to less than 40 

200 years. 

201 (d) The Contracting Officer shall make a determination ten years after the date of 

202 execution of this Contract, and every five years thereafter during the term of this Contract, of whether 

203 a conversion to a contract under subsection (c)(1) of Section 9 of the Reclamation Project Act of 

204 1939 can be accomplished. The Contracting Officer anticipates that during the term of this Contract, 

205 all authorized project construction expected to occur will have occurred, and on that basis the 
Contract No. 14-06-200-4619A-LTR1 

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206 Contracting Officer agrees upon such completion to allocate all costs that are properly assignable to 

207 the Contractor, and agrees further that, at any time after such allocation is made, and subject to 

208 satisfaction of the conditions set out in this subdivision of this Article, this Contract shall, at the 

209 request of the Contractor, be converted to a contract under said subsection (c)(1) of Section 9, subject 

210 to applicable Federal law and under stated terms and conditions mutually agreeable to the Contractor 

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

212 Contracting Officer that, account being taken of the amount credited to return by the Contractor as 

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

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

215 contract under said subsection (c)(1) of Section 9. If the remaining amount of costs that are properly 

216 assignable to the Contractor cannot be determined during the term of this Contract, the Contracting 

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

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

219 so as to permit, upon request of the Contractor and satisfaction of the conditions set out above, 

220 conversion to a contract under said subsection (c)(1) of Section 9. 

221 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

224 Contract, the Contracting Officer shall make available for delivery to the Contractor 3,500 acre-feet 

225 of water for M&I purposes. The Water Delivered to the Contractor in accordance with this 

226 subdivision shall be scheduled and paid for pursuant to the provisions of Articles 4 and 7 of this 
Contract No. 14-06-200-4619A-LTR1 

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227 Contract. 

228 (b) Because the capacity of the Central Valley Project to deliver Project Water has 

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

230 hydrologic conditions and implementation of Federal and State laws, the likelihood of the Contractor 

231 actually receiving the amount of water set out in subdivision (a) of this Article in any given Year is 

232 uncertain. The Contracting Officer’s most recent modeling referenced in the PEIS projected that 

233 Contract Total set forth in this Contract will not be available to the Contractor in many years. During 

234 the most recent five years, the Recent Historic Average of water made available to the Contractor 

235 was 3,199 acre-feet. Nothing in subdivision (b) of this Article shall affect the rights and obligations 

236 of the parties under any provision of this Contract. 

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

238 legal requirements. 

239 (d) The Contractor shall make reasonable and beneficial use of all water furnished 

240 pursuant to this Contract. Groundwater recharge programs (direct, indirect, or in lieu), groundwater 

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

242 Water or other water furnished pursuant to this Contract conducted within the Contractor’s Service 

243 Area which are consistent with applicable State law and result in use consistent with Federal 

244 Reclamation law will be allowed; Provided, That any direct recharge program(s) is (are) described in 

245 the Contractor’s Water Conservation Plan submitted pursuant to Article 26 of this Contract; 

246 Provided, further, That such Water Conservation Plan demonstrates sufficient lawful uses exist in the 
Contract No. 14-06-200-4619A-LTR1 

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247 Contractor’s Service Area so that using a long-term average, the quantity of Delivered Water is 

248 demonstrated to be reasonable for such uses and in compliance with Federal Reclamation law. 

249 Groundwater recharge programs, groundwater banking programs, surface water storage programs, 

250 and other similar programs utilizing Project Water or other water furnished pursuant to this Contract 

251 conducted outside the Contractor’s Service Area may be permitted upon written approval of the 

252 Contracting Officer, which approval will be based upon environmental documentation, Project Water 

253 rights, and Project operational concerns. The Contracting Officer will address such concerns in 

254 regulations, policies, or guidelines. 

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

256 biological opinion(s) prepared as a result of a consultation regarding the execution of this Contract 

257 undertaken pursuant to Section 7 of the Endangered Species Act (ESA) of 1973, as amended, that are 

258 within the Contractor’s legal authority to implement. The Existing Contract, which evidences in 

259 excess of 36 years of diversions for M&I purposes of the quantities of water provided in subdivision 

260 (a) of Article 3 of this Contract, will be considered in developing an appropriate baseline for the 

261 biological assessment prepared pursuant to the ESA and any other needed environmental review. 

262 Nothing herein shall be construed to prevent the Contractor from challenging or seeking judicial 

263 relief in a court of competent jurisdiction with respect to any biological opinion or other 

264 environmental documentation referred to in this Article. 

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

266 Contact, the Contracting Officer will make a determination whether Project Water, or other water 

267 available to the Project, can be made available to the Contractor in addition to the Contract Total 
Contract No. 14-06-200-4619A-LTR1 

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268 under Article 3 of this Article during the Year without adversely impacting other Project Contractors. 

269 At the request of the Contractor, the Contracting Officer will consult with the Contractor prior to 

270 making such a determination. If the Contracting Officer determines that Project Water, or other 

271 water available to the Project, can be made available to the Contractor, the Contracting Officer will 

272 announce the availability of such water and shall so notify the Contractor as soon as practical. The 

273 Contracting Officer will thereafter meet with the Contractor and other Project Contractors capable of 

274 taking such water to determine the most equitable and efficient allocation of such water. If the 

275 Contractor requests the delivery of any quantity of such water, the Contracting Officer shall make 

276 such water available to the Contractor in accordance with applicable statutes, regulations, guidelines, 

277 and policies. 

278 (g) The Contractor may request permission to reschedule for use during the 

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

280 referred to as “rescheduled water.” The Contractor may request permission to use during the current 

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

282 during the subsequent Year referred to as ”peruse.” The Contracting Officer’s written approval may 

283 permit such uses in accordance with applicable statutes, regulations, guidelines, and policies. 

284 Subject to existing long-term contractual commitments, water rights and operational constraints, 

285 long-term Project Contractors shall have a first right to acquire such water, including Project Water 

286 made available pursuant to Section 215 of the RRA. 

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

288 State law to the reasonable and beneficial use of Water Delivered pursuant to this Contract during the 
Contract No. 14-06-200-4619A-LTR1 

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

290 the terms thereof shall not be disturbed so long as the Contractor shall fulfill all of its obligations 

291 under this Contract and any renewals thereof. Nothing in the preceding sentence shall affect the 

292 Contracting Officer’s ability to impose shortages under Article 11 or subdivision (b) of Article 12 of 

293 this Contract or applicable provisions of any subsequent renewal contracts. 

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

295 delivered for purposes other than those described in subdivision (o) of Article 1 of this Contract upon 

296 written approval by the Contracting Officer in accordance with the terms and conditions of such 

297 approval. 

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

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

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

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

302 that the Contracting Officer retains the right to object to the substance of the Contractor’s position in 

303 such a proceeding; Provided further, That in such proceedings the Contracting Officer shall recognize 

304 the Contractor has a legal right under the terms of this Contract to use Project Water. 

305 TIME FOR DELIVERY OF WATER

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

307 announce the Contracting Officer’s expected declaration of the Water Made Available. Such 

308 declaration will be expressed in terms of both Water Made Available and the Recent Historic 

309 Average and will be updated monthly, and more frequently if necessary, based on then-current 
Contract No. 14-06-200-4619A-LTR1 

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310 operational and hydrologic conditions and a new declaration with changes, if any, to the Water Made 

311 Available will be made. The Contracting Officer shall provide forecasts of Project operations and the 

312 basis of the estimate, with relevant supporting information, upon the written request of the 

313 Contractor. Concurrently with the declaration of the Water Made Available, the Contracting Officer 

314 shall provide the Contractor with the updated Recent Historic Average. 

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

316 shall submit to the Contracting Officer a written schedule, satisfactory to the Contracting Officer, 

317 showing the monthly quantities of Project Water to be delivered by the United States to the 

318 Contractor pursuant to this Contract for the Year commencing on such March 1. The Contracting 

319 Officer shall use all reasonable means to deliver Project Water according to the approved schedule 

320 for the Year commencing on such March 1. 

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

322 Project Water the Contractor intends to put to reasonable and beneficial use within the Contractor's 

323 Service Area or to sell, transfer or exchange pursuant to Article 9 of this Contract during any Year. 

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

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

326 schedule submitted by the Contractor pursuant to subdivision (b) of this Article, or any written 

327 revision(s) thereto satisfactory to the Contracting Officer, submitted within a reasonable time prior to 

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

329 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

330 5. (a) Project Water scheduled pursuant to subdivision (b) of Article 4 of this 
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331 Contract shall be delivered to the Contractor at Project facilities and any additional point or points of 

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

333 the Contracting Officer and the Contractor. 

334 (b) The Contracting Officer, either directly or indirectly through its written 

335 agreements(s) with the Operating Non-Federal Entity(ies), shall make all reasonable efforts to 

336 maintain sufficient flows and levels of water in the Project facilities to deliver Project Water to the 

337 Contractor at the point or points of delivery established pursuant to subdivision (a) of this Article. 

338 (c) The Contractor shall not deliver Project Water to land outside the Contractor's 

339 Service Area unless approved in advance by the Contracting Officer. 

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

341 measured and recorded with equipment furnished, installed, operated, and maintained by the 

342 Contracting Officer either directly or indirectly through its written agreements(s) with the Operating 

343 Non-Federal Entity(ies), unless undertaken by the Contractor with the consent of the Contracting 

344 Officer at the point or points of delivery established pursuant to subdivision (a) of this Article. Upon 

345 the request of either party to this Contract, the Contracting Officer shall investigate, or cause to be 

346 investigated by the appropriate Operating Non-Federal Entity (ies) the accuracy of such 

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

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

349 consult with the Contractor and the appropriate Operating Non-Federal Entity(ies), if any, prior to 

350 making a final determination of the quantity delivered for that period of time. 
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351 (e) Absent a separate contrary written agreement with the Contractor, neither the 

352 Contracting Officer nor any Operating Non-Federal Entity(ies) shall be responsible for the control, 

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

354 Contract beyond the point or points of delivery established pursuant to subdivision (a) of this Article. 

355 The Contractor shall indemnify the United States, its officers, employees, agents, and assigns on 

356 account of damage or claim of damage of any nature whatsoever for which there is legal 

357 responsibility, including property damage, personal injury, or death arising out of or connected with 

358 the control, carriage, handling, use, disposal, or distribution of such Water Delivered beyond such 

359 point or points of delivery except for any damage or claim arising out of: (i) acts or omissions of the 

360 Contracting Officer or any of its officers, employees, agents, and assigns, including any responsible 

361 Operating Non-Federal Entity(ies), with the intent of creating the situation resulting in any damage or 

362 claim; (ii) willful misconduct of the Contracting Officer or any of its officers, employees, agents, and 

363 assigns, including any responsible Operating Non-Federal Entity; (iii) negligence of the Contracting 

364 Officer or any of its officers, employees, agents, and assigns including the Operating Non-Federal 

365 Entity(ies); or (iv) damage or claims resulting from a malfunction of facilities owned and/or operated 

366 by the United States or responsible Operating Non-Federal Entity(ies). 

367 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

368 6. (a) The Contractor has established a measuring program satisfactory to the 

369 Contracting Officer. The Contractor shall ensure that, unless the Contractor establishes an alternative 

370 measurement program satisfactory to the Contracting Officer, all surface water delivered for M&I 

371 purposes is measured at each M&I service connection. The water measuring devices or water 
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372 measuring methods of comparable effectiveness must be acceptable to the Contracting Officer. The 

373 Contractor shall be responsible for installing, operating, and maintaining and repairing all such 

374 measuring devices and implementing all such water measuring methods at no cost to the United 

375 States. The Contractor shall use the information obtained from such water measuring devices or 

376 water measuring methods to ensure its proper management of the water; to bill water users for water 

377 delivered by the Contractor; and, if applicable, to record water delivered for M&I purposes by 

378 customer class as defined in the Contractor’s water conservation plan provided for in Article 26 of 

379 this Contract. Nothing herein contained, however, shall preclude the Contractor from establishing 

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

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

382 described in subdivision (c) of Article 26. 

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

384 of this Contract, the Contractor shall provide to the Contracting Officer a written report describing 

385 the measurement devices or water measuring methods being used or to be used to implement 

386 subdivision (a) of this Article and identifying the M&I service connections or alternative 

387 measurement programs approved by the Contracting Officer, at which such measurement devices or 

388 water measuring methods are being used, and, if applicable, identifying the locations at which such 

389 devices and/or methods are not yet being used including a time schedule for implementation at such 

390 locations. The Contracting Officer shall advise the Contractor in writing within 60 days as to the 

391 adequacy and necessary modifications, if any, of the measuring devices or water measuring methods 

392 identified in the Contractor’s report and if the Contracting Officer does not respond in such time, they 
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393 shall be deemed adequate. If the Contracting Officer notifies the Contractor that the measuring 

394 devices or methods are inadequate, the parties shall within 60 days following the Contracting 

395 Officer’s response, negotiate in good faith the earliest practicable date by which the Contractor shall 

396 modify said measuring devices and/or measuring methods as required by the Contracting Officer to 

397 ensure compliance with subdivision (a) of this Article. 

398 (c) All new surface water delivery systems installed within the Contractor's 

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

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

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

402 in writing by April 30 of each Year of the monthly volume of surface water delivered within the 

403 Contractor’s Service Area during the previous Year. 

404 (e) The Contractor shall inform the Contracting Officer and the Operating 

405 Non-Federal Entity on or before the 20th calendar day of each month of the quantity of M&I Water 

406 taken during the preceding month. 

407 RATES AND METHOD OF PAYMENT FOR WATER

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

409 Delivered Water at Rates, Charges, and the Tiered Pricing Component established in accordance 

410 with: (i) the Secretary’s then-existing ratesetting policy for M&I Water. Such ratesetting policies 

411 shall be amended, modified, or superseded only through a public notice and comment procedure; (ii) 

412 applicable Federal Reclamation law and associated rules and regulations, or policies; and (iii) other 

413 applicable provisions of this Contract. Payments shall be made by cash transaction, electronic funds 
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414 transfer, or any other mechanism as may be agreed to in writing by the Contractor and the 

415 Contracting 

416 Officer. The Rates, Charges, and Tiered Pricing Component applicable to the Contractor upon 

417 execution of this Contract are set forth in Exhibit “B,” as may be revised annually. 

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

419 Tiered Pricing Components as follows: 

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

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

422 October 1, of the current Calendar Year, through September 30, of the following Calendar Year, and 

423 the basis for such estimate. The Contractor shall be allowed not less than two months to review and 

424 comment on such estimates. On or before September 15 of each Calendar Year, the Contracting 

425 Officer shall notify the Contractor in writing of the Charges to be in effect during the period 

426 October 1 of the current Calendar Year, through September 30, of the following Calendar Year, and 

427 such notification shall revise Exhibit “B.” 

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

429 make available to the Contractor an estimate of the Rates and Tiered Pricing Components for Project 

430 Water for the following Year and the computations and cost allocations upon which those Rates are 

431 based. The Contractor shall be allowed not less than two months to review and comment on such 

432 computations and cost allocations. By December 31 of each Calendar Year, the Contracting Officer 

433 shall provide the Contractor with the final Rates and Tiered Pricing Components to be in effect for 
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434 the upcoming Year, and such notification shall revise Exhibit “B.” 

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

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

437 shall make an advance payment to the United States equal to the total amount payable pursuant to the 

438 applicable Rate(s) set under subdivision (a) of this Article, for the Project Water scheduled to be 

439 delivered pursuant to this Contract during the first two calendar months of the Year. Before the end 

440 of the first month and before the end of each calendar month thereafter, the Contractor shall make an 

441 advance payment to the United States, at the Rate(s) set under subdivision (a) of this Article, for the 

442 Water Scheduled to be delivered pursuant to this Contract during the second month immediately 

443 following. Adjustments between advance payments for Water Scheduled and payments at Rates due 

444 for Water Delivered shall be made before the end of the following month; Provided, That any revised 

445 schedule submitted by the Contractor pursuant to Article 4 of this Contract which increases the 

446 amount of Water Delivered pursuant to this Contract during any month shall be accompanied with 

447 appropriate advance payment, at the Rates then in effect, to assure that Project Water is not delivered 

448 to the Contractor in advance of such payment. In any month in which the quantity of Water 

449 Delivered to the Contractor pursuant to this Contract equals the quantity of Water Scheduled and paid 

450 for by the Contractor, no additional Project Water shall be delivered to the Contractor unless and 

451 until an advance payment at the Rates then in effect for such additional Project Water is made. Final 

452 adjustment between the advance payments for the Water Scheduled and payments for the quantities 

453 of Water Delivered during each Year pursuant to this Contract shall be made as soon as practicable 

454 but no later than April 30th of the following Year, or 60 days after the delivery of Project Water 
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455 “rescheduled” under subdivision (g) of Article 3 of this Contract if such water is not delivered by the 

456 last day of February. 

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

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

459 appropriate Tiered Pricing Component then in effect, before the end of the month of delivery. The 

460 payments shall be consistent with the quantities of M&I Water Delivered as shown in the water 

461 delivery report for the subject month prepared by the Operating Non-Federal Entity(ies) or, if there is 

462 no Operating Non-Federal Entity, by the Contracting Officer. The water delivery report shall be 

463 deemed a bill for the payment of Charges and the applicable Tiered Pricing Component for Water 

464 Delivered. Adjustment for overpayment or underpayment of Charges shall be made through the 

465 adjustment of payments due to the United States for Charges for the next month. Any amount to be 

466 paid for past due payment of Charges and the Tiered Pricing Component shall be computed pursuant 

467 to Article 20 of this Contract. 

468 (e) The Contractor shall pay for any Water Delivered under subdivision (d), (f), 

469 or (g) of Article 3 of this Contract as determined by the Contracting Officer pursuant to applicable 

470 statutes, associated regulations, any applicable provisions of guidelines or ratesetting policies; 

471 Provided, That the Rate for Water Delivered under subdivision (d) or (f) of Article 3 of this Contract 

472 shall be no more than the otherwise applicable Rate for M&I Water under subdivision (a) of this 

473 Article. 

474 (f) Payments to be made by the Contractor to the United States under this 
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475 Contract may be paid from any revenues available to the Contractor. 

476 (g) All revenues received by the United States from the Contractor relating to the 

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

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

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

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

481 of the financial terms and conditions of its long-term contracts, in accordance with applicable Federal 

482 standards, so as to reflect the application of Project costs and revenues. The Contracting Officer 

483 shall, each Year upon request of the Contractor, provide to the Contractor a detailed accounting of all 

484 Project and Contractor expense allocations, the disposition of all Project and Contractor revenues, 

485 and a summary of all water delivery information. The Contracting Officer and the Contractor shall 

486 enter into good faith negotiations to resolve any discrepancies or disputes relating to accountings, 

487 reports, or information. 

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

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

490 policies, and procedures used for establishing Rates, Charges, and the Tiered Pricing Component, 

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

492 mutual best interest of the parties, it is expressly agreed that the parties may enter into agreements to 

493 modify the mechanisms, policies, and procedures for any of those purposes while this Contract is in 

494 effect without amending this Contract. 

495 (j) (1) Beginning at such time as deliveries of Project Water in a Year exceed 
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496 80 percent of the Contract Total, then before the end of the month following the month of delivery 

497 the Contractor shall make an additional payment to the United States equal to the applicable Tiered 

498 Pricing Component. The Tiered Pricing Component for the amount of Water Delivered in excess of 

499 80 percent of the Contract Total, but less than or equal to 90 percent of the Contract Total, shall equal 

500 the one-half of the difference between the Rate established under subdivision (a) of this Article and 

501 the M&I Full Cost Water Rate. The Tiered Pricing Component for the amount of Water Delivered 

502 which exceeds 90 percent of the Contract Total shall equal the difference between (i) the Rate 

503 established under subdivision (a) of this Article and (ii) the M&I Full Cost Water Rate. 

504 (2) Omitted. 

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

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

507 transfers to others but shall not include Project Water transferred and delivered to the Contractor, nor 

508 shall it include the additional water provided to the Contractor under the provisions of subdivision (f) 

509 of Article 3 of this Contract. 

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

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

512 costs of the Project, as those terms are used in the then-current Project ratesetting policies, and 

513 interest, where appropriate, except in instances where a minimum Rate is applicable in accordance 

514 with the relevant Project ratesetting policy. Changes of significance in practices which implement 

515 the Contracting Officer’s ratesetting policies will not be implemented until the Contracting Officer 

516 has provided the Contractor an opportunity to discuss the nature, need, and impact of the proposed 
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517 change. 

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

519 the Rates for Project Water transferred by the Contractor shall be the Contractor’s Rates adjusted 

520 upward or downward to reflect the changed costs of delivery (if any) of the transferred Project Water 

521 to the transferee’s point of delivery in accordance with the then applicable CVP Ratesetting Policy. 

522 (m) Omitted. 

523 (n) The Contractor asserts that it is not legally obligated to pay any Project deficits 

524 claimed by the United States to have accrued as of the date of this Contract or deficit-related interest

525 charges thereon. By entering into this Contract, the Contractor does not waive any legal rights or 

526 remedies it may have with respect to such disputed issues. Notwithstanding the execution of this 

527 Contract and payments made hereunder, the Contractor may challenge in the appropriate 

528 administrative or judicial forums: (1) the existence, computation, or imposition of any deficit 

529 charges accruing during the term of the Existing Contract; (2) interest accruing on any such deficits; 

530 (3) the inclusion of any such deficit charges or interest in the Rates; (4) the application by the United 

531 States of payments made by the Contractor under its Existing Contract; and (5) the application of 

532 such payments in the Rates. The Contracting Officer agrees that the Contractor shall be entitled to 

533 the benefit of any administrative or judicial ruling in favor of any Project M&I contractor on any of 

534 these issues, and credits for payments heretofore made, provided that the basis for such ruling is 

535 applicable to the Contractor. 

536 8. Omitted. 
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537 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

539 transferred, or exchanged to others for reasonable and beneficial uses within the State of California if 

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

541 guidelines or regulations then in effect. No sale, transfer, or exchange of Project Water under this 

542 Contract may take place without the prior written approval of the Contracting Officer, except as 

543 provided for in subdivision (b) of this Article, and no such sales, transfers, or exchanges shall be 

544 approved absent all appropriate environmental documentation, including but not limited to 

545 documents prepared pursuant to the NEPA and the ESA. Such environmental documentation should 

546 include, as appropriate, an analysis of groundwater impacts and economic and social effects, 

547 including environmental justice, of the proposed water transfers on both the transferor and transferee. 

548 (b) In order to facilitate efficient water management by means of water transfers of 

549 the type historically carried out among Project Contractors located within the same geographical area 

550 and to allow the Contractor to participate in an accelerated water transfer program during the term of 

551 this Contract, the Contracting Officer shall prepare, as appropriate, all necessary environmental 

552 documentation including, but not limited to documents prepared pursuant to the NEPA and the ESA 

553 analyzing annual transfers within such geographical areas and the Contracting Officer shall 

554 determine whether such transfers comply with applicable law. Following the completion of the 

555 environmental documentation, such transfers addressed in such documentation shall be conducted 

556 with advance notice to the Contracting Officer, but shall not require prior written approval by the 

557 Contracting Officer. Such environmental documentation and the Contracting Officer’s compliance 
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558 determination shall be reviewed every five years and updated, as necessary, prior to the expiration of 

559 the then existing five-year period. All subsequent environmental documentation shall include an 

560 alternative to evaluate not less than the quantity of Project Water historically transferred within the 

561 same geographical area. 

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

563 transfer must: (i) be for irrigation purposes for lands irrigated within the previous three years, for 

564 M&I use, groundwater recharge, groundwater banking, or similar groundwater activities, surface 

565 water storage, or fish and wildlife resources; not lead to land conversion; and be delivered to 

566 established cropland, wildlife refuges, groundwater basins, or M&I use; (ii) occur within a single 

567 Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water through existing 

568 facilities with no new construction or modifications to facilities and be between existing Project 

569 Contractors and/or the Contractor and the United States, Department of the Interior; and (v) comply 

570 with all applicable Federal, State, and local or tribal laws and requirements imposed for protection of 

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

572 APPLICATION OF PAYMENTS AND ADJUSTMENTS

573 10. (a) The amount of any overpayment by the Contractor of the Contractor’s O&M, 

574 capital, and deficit (if any) obligations for the Year shall be applied first to any current liabilities of 

575 the Contractor arising out of this Contract then due and payable. Overpayments of more than $1,000 

576 shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such overpayment at 

577 the option of the Contractor, may be credited against amounts to become due to the United States by 

578 the Contractor. With respect to overpayment, such refund or adjustment shall constitute the sole 
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579 remedy of the Contractor or anyone having or claiming to have the right to the use of any of the 

580 Project Water supply provided for herein. All credits and refunds of overpayments shall be made 

581 within 30 days of the Contracting Officer obtaining direction as to how to credit or refund such 

582 overpayment in response to the notice to the Contractor that it has finalized the accounts for the Year 

583 in which the overpayment was made. 

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

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

586 the work has been completed. If the advances exceed the actual costs incurred, the difference will be 

587 refunded to the Contractor. If the actual costs exceed the Contractor's advances, the Contractor will 

588 be billed for the additional costs pursuant to Article 25. 

589 TEMPORARY REDUCTIONS--RETURN FLOWS

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

591 requirements of Federal law and (ii) the obligations of the United States under existing contracts, or 

592 renewals thereof, providing for water deliveries from the Project, the Contracting Officer shall make 

593 all reasonable efforts to optimize Project Water deliveries to the Contractor as provided in this 

594 Contract. 

595 (b) The Contracting Officer or Operating Non-Federal Entity(ies) may temporarily 

596 discontinue or reduce the quantity of Water Delivered to the Contractor as herein provided for the 

597 purposes of investigation, inspection, maintenance, repair, or replacement of any of the Project 

598 facilities or any part thereof necessary for the delivery of Project Water to the Contractor, but so far 
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599 as feasible the Contracting Officer or Operating Non-Federal Entity(ies) will give the Contractor due 

600 notice in advance of such temporary discontinuance or reduction, except in case of emergency, in 

601 which case no notice need be given; Provided, That the United States shall use its best efforts to 

602 avoid any discontinuance or reduction in such service. Upon resumption of service after such 

603 reduction or discontinuance, and if requested by the Contractor, the United States will, if possible, 

604 deliver the quantity of Project Water which would have been delivered hereunder in the absence of 

605 such discontinuance or reduction. 

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

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

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

609 States any right as seepage or return flow being put to reasonable and beneficial use pursuant to this 

610 Contract within the Contractor’s Service Area by the Contractor or those claiming by, through, or 

611 under the Contractor. 

612 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

614 means to guard against a Condition of Shortage in the quantity of water to be made available to the 

615 Contractor pursuant to this Contract. In the event the Contracting Officer determines that a 

616 Condition of Shortage appears probable, the Contracting Officer will notify the Contractor of said 

617 determination as soon as practicable. 

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

619 the Project, drought, other physical causes beyond the control of the Contracting Officer or actions 
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620 taken by the Contracting Officer to meet legal obligations then, except as provided in subdivision (a) 

621 of Article 18 of this Contract, no liability shall accrue against the United States or any of its officers, 

622 agents, or employees for any damage, direct or indirect, arising therefrom. 

623 (c) Omitted. 

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

625 with the then-existing Central Valley Project M&I Water Shortage Policy. Such policy shall be 

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

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

628 or remedies it may have to file or participate in any administrative or judicial proceeding contesting; 

629 (i) the sufficiency of the Central Valley Project M&I Water Shortage Policy; (ii) the substance of 

630 such a policy; (iii) the applicability of such a policy; or (iv) the manner in which such policy is 

631 implemented in order to allocate Project Water between municipal and industrial and irrigation 

632 purposes; Provided, That the Contractor has commenced any such judicial challenge or any 

633 administrative procedures necessary to institute any judicial challenge within 6 months of the policy 

634 becoming final. By agreeing to the foregoing, the Contracting Officer does not waive any legal 

635 defenses or remedies that it may have to assert in such a proceeding. Nothing contained herein shall 

636 be interpreted to validate or invalidate the Central Valley Project M&I Water Shortage Policy. 

637 13. Omitted 

638 RULES AND REGULATIONS

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

640 to this Contract is subject to the applicable provisions of Federal Reclamation law and any applicable 
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641 rules and regulations promulgated by the Secretary of the Interior under such law. 

642 WATER AND AIR POLLUTION CONTROL

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

644 and air pollution laws and regulations of the United States and the State of California, and shall 

645 obtain all required permits or licenses from the appropriate Federal, State, or local authorities. 

646 

647 QUALITY OF WATER 

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

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

650 the Contractor in accordance with the water quality standards specified in subsection 2(b) of the Act 

651 of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of October 27, 1986 (100 Stat. 

652 3050) or other existing Federal laws. The United States is under no obligation to construct or furnish 

653 water treatment facilities to maintain or to improve the quality of Water Delivered to the Contractor 

654 pursuant to this Contract. The United States does not warrant the quality of Water Delivered to the 

655 Contractor pursuant to this Contract. 

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

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

658 level reasonably attainable as determined by the Contracting Officer. 

659 WATER ACQUIRED BY THE CONTRACTOR

660 OTHER THAN FROM THE UNITED STATES

661 17. (a) Omitted. 

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

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

664 subject to the completion of appropriate environmental documentation, with the approval of the 
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665 Contracting Officer and the execution of any contract determined by the Contracting Officer to be 

666 necessary, consistent with the following provisions: 

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

668 and deliver said water to lands within the Contractor’s Service Area, subject to payment to the United 

669 States and/or to any applicable Operating Non-Federal Entity of an appropriate rate as determined by 

670 the CVP Ratesetting Policy and the RRA, each as amended, modified, or superseded from time to 

671 time. In addition, if electrical power is required to pump non-Project water through the facilities, the 

672 Contractor shall be responsible for obtaining the necessary power and paying the necessary charges 

673 therefore. 

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

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

676 determined by the Contracting Officer; (ii) reduce the quantity or quality of water available to other 

677 Project water service contractors; (iii) interfere with the delivery of contractual water entitlements to 

678 any other Project water service contractors; or (iv) interfere with the physical maintenance of the 

679 Project facilities. 

680 (3) Neither the United States nor the Operating Non-Federal Entity(ies) 

681 shall be responsible for control, care or distribution of the non-Project water before it is introduced 

682 into or after it is delivered from the Project facilities. The Contractor hereby releases and agrees to 

683 defend and indemnify the United States and the Operating Non-Federal Entity(ies), and their 

684 respective officers, agents, and employees, from any claim for damage to persons or property, direct 
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685 or indirect, resulting from the acts(s) the Contractor or its officers, employees, agents, or assigns, in 

686 (i) extracting or diverting non-Project water from any source, or (ii) diverting such non-Project water 

687 into Project facilities. 

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

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

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

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

692 Officer, the United States and the Project Contractors entitled to Project Water from Delta Division 

693 Facilities shall share priority to utilize the remaining capacity of the facilities declared to be available 

694 by the Contracting Officer for conveyance and transportation of non-Project water prior to any such 

695 remaining capacity being made available to non-Project contractors. Other Project Contractors shall 

696 have a second priority to any remaining capacity of facilities declared to be available by the 

697 Contracting Officer for conveyance and transportation of non-Project water prior to any such 

698 remaining capacity being made available to non-Project contractors. 

699 OPINIONS AND DETERMINATIONS

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

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

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

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

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

705 unreasonable opinion or determination. Each opinion or determination by either party shall be 
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706 provided in a timely manner. Nothing in this subdivision (a) of this Article is intended to or shall 

707 affect or alter the standard of judicial review applicable under Federal law to any opinion or 

708 determination implementing a specific provision of Federal law embodied in statute or regulation. 

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

710 to administer this Contract that are consistent with the expressed and implied provisions of this 

711 Contract, the laws of the United States and of the State of California, and the rules and regulations 

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

713 the Contractor to the extent reasonably practicable. 

714 COORDINATION AND COOPERATION

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

716 and the Contractor shall communicate, coordinate, and cooperate with each other, and with other 

717 affected Project Contractors, in order to improve the operation and management of the Project. The 

718 communication, coordination, and cooperation regarding operations and management shall include, 

719 but not be limited to, any action which will or may materially affect the quantity or quality of Project 

720 Water supply, the allocation of Project Water supply, and Project financial matters including, but not 

721 limited to, budget issues. The communication, coordination, and cooperation provided for hereunder 

722 shall extend to all provisions of this Contract. Each party shall retain exclusive decision making 

723 authority for all actions, opinions, and determinations to be made by the respective party. 

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

725 other affected Project Contractors, and the Contracting Officer shall arrange to meet with interested 

726 Project Contractors to develop a mutually agreeable, written Project-wide process, which may be 
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727 amended as necessary separate and apart from this Contract. The goal of this process shall be to 

728 provide, to the extent practicable, the means of mutual communication and interaction regarding 

729 significant decisions concerning Project operation and management on a real-time basis. 

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

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

732 (1) The Contracting Officer will, at the request of the Contractor, assist in 

733 the development of integrated resource management plans for the Contractor. Further, the 

734 Contracting Officer will, as appropriate, seek authorizations for implementation of partnerships to 

735 improve water supply, water quality, and reliability. 

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

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

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

739 (3) The Secretary will coordinate with Project Contractors and the State of 

740 California to seek improved water resource management. 

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

742 Department of the Interior that may impact the availability of water for Project purposes. 

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

744 hold division level meetings to discuss Project operations, division level water management 

745 activities, and other issues as appropriate. 

746 (d) Without limiting the contractual obligations of the Contracting Officer under 

747 the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 
Contract No. 14-06-200-4619A-LTR1 

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748 Contracting Officer’s ability to communicate, coordinate, and cooperate with the Contractor or other 

749 interested stakeholders or to make decisions in a timely fashion as needed to protect health, safety, or

750 physical integrity of structures or facilities. 

751 CHARGES FOR DELINQUENT PAYMENTS

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

753 on delinquent installments or payments. When a payment is not received by the due date, the 

754 Contractor shall pay an interest charge for each day the payment is delinquent beyond the due date. 

755 When a payment becomes sixty (60) days delinquent, the Contractor shall pay an administrative 

756 charge to cover additional costs of billing and processing the delinquent payment. When a payment 

757 is delinquent ninety (90) days or more, the Contractor shall pay an additional penalty charge of 

758 six (6%) percent per year for each day the payment is delinquent beyond the due date. Further, the 

759 Contractor shall pay any fees incurred for debt collection services associated with a delinquent 

760 payment. 

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

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

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

764 Project Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due 

765 date and remain fixed for the duration of the delinquent period. 

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

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

768 accrued interest, and finally to the overdue payment. 

769 EQUAL OPPORTUNITY

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

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

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

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

774 employment, without regard to their race, color, religion, sex, or national origin. Such action shall 

775 include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

776 recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

777 compensation; and selection for training, including apprenticeship. The Contractor agrees to post in 

778 conspicuous places, available to employees and applicants for employment, notices to be provided by 

779 the Contracting Officer setting forth the provisions of this nondiscrimination clause. 
Contract No. 14-06-200-4619A-LTR1 

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

781 by or on behalf of the Contractor, state that all qualified applicants will receive consideration for 

782 employment without discrimination because of race, color, religion, sex, or national origin. 

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

784 which it has a collective bargaining agreement or other contract or understanding, a notice, to be 

785 provided by the Contracting Officer, advising the said labor union or workers' representative of the 

786 Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and 

787 shall post copies of the notice in conspicuous places available to employees and applicants for 

788 employment. 

789 (d) The Contractor will comply with all provisions of Executive Order No. 11246 

790 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders of the Secretary 

791 of Labor. 

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

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

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

795 and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, 

796 regulations, and orders. 

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

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

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

800 for further Government contracts in accordance with procedures authorized in said amended 

801 Executive Order, and such other sanctions may be imposed and remedies invoked as provided in said 

802 Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided 

803 by law. 

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

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

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

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

808 with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a 

809 means of enforcing such provisions, including sanctions for noncompliance: Provided, however, 

810 That in the event the Contractor becomes involved in, or is threatened with, litigation with a 

811 subcontractor or vendor as a result of such direction, the Contractor may request the United States to 

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

813 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

814 22. (a) The obligation of the Contractor to pay the United States as provided in this 
Contract No. 14-06-200-4619A-LTR1 

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

816 may be distributed among the Contractor's water users and notwithstanding the default of individual 

817 water users in their obligations to the Contractor. 

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

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

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

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

822 made available pursuant to this Contract for lands or parties which are in arrears in the advance 

823 payment of water rates levied or established by the Contractor. 

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

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

826 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

827 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 (42 

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

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

830 well as with their respective implementing regulations and guidelines imposed by the U.S. 

831 Department of the Interior and/or Bureau of Reclamation. 

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

833 of race, color, national origin, handicap, or age, be excluded from participation in, be denied the 

834 benefits of, or be otherwise subjected to discrimination under any program or activity receiving 

835 financial assistance from the Bureau of Reclamation. By executing this Contract, the Contractor 

836 agrees to immediately take any measures necessary to implement this obligation, including 

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

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

839 of obtaining any and all Federal grants, loans, contracts, property discounts, or other Federal financial 

840 assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, including 

841 installment payments after such date on account of arrangements for Federal financial assistance 

842 which were approved before such date. The Contractor recognizes and agrees that such Federal 

843 assistance will be extended in reliance on the representations and agreements made in this Article, 

844 and that the United States reserves the right to seek judicial enforcement thereof. 

845 24. Omitted. 
Contract No. 14-06-200-4619A-LTR1 

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846 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

847 25. In addition to all other payments to be made by the Contractor pursuant to this 

848 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

849 detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 

850 direct cost incurred by the United States for work requested by the Contractor associated with this 

851 Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

852 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 

853 writing in advance by the Contractor. This Article shall not apply to costs for routine contract 

854 administration. 

855 WATER CONSERVATION

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

857 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be 

858 implementing an effective water conservation and efficiency program based on the Contractor's water 

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

860 efficiency criteria for evaluating water conservation plans established under Federal law. The water 

861 conservation and efficiency program shall contain definite water conservation objectives, appropriate 

862 economically feasible water conservation measures, and time schedules for meeting those objectives. 

863 Continued Project Water delivery pursuant to this Contract shall be contingent upon the Contractor’s 

864 continued implementation of such water conservation program. In the event the Contractor's water 

865 conservation plan or any revised water conservation plan completed pursuant to subdivision (d) of 

866 this Article 26 have not yet been determined by the Contracting Officer to meet such criteria, due to 
Contract No. 14-06-200-4619A-LTR1 

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867 circumstances which the Contracting Officer determines are beyond the control of the Contractor, 

868 water deliveries shall be made under this Contract so long as the Contractor diligently works with the 

869 Contracting Officer to obtain such determination at the earliest practicable date, and thereafter the 

870 Contractor immediately begins implementing its water conservation and efficiency program in 

871 accordance with the time schedules therein. 

872 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

873 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 

874 the Best Management Practices identified by the time frames issued by the California Urban Water 

875 Conservation Council for such M&I Water unless any such practice is determined by the Contracting 

876 Officer to be inappropriate for the Contractor. 

877 (c) The Contractor shall submit to the Contracting Officer a report on the status of 

878 its implementation of the water conservation plan on the reporting dates specified in the then existing 

879 conservation and efficiency criteria established under Federal law. 

880 (d) At five-year intervals, the Contractor shall revise its water conservation plan to 

881 reflect the then current conservation and efficiency criteria for evaluating water conservation plans 

882 established under Federal law and submit such revised water management plan to the Contracting 

883 Officer for review and evaluation. The Contracting Officer will then determine if the water 

884 conservation plan meets Reclamation’s then current conservation and efficiency criteria for 

885 evaluating water conservation plans established under Federal law. 

886 (e) If the Contractor is engaged in direct groundwater recharge, such activity shall 
Contract No. 14-06-200-4619A-LTR1 

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887 be described in the Contractor’s water conservation plan. 

888 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

889 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

890 Contract shall not be applicable to or affect non-Project water or water rights now owned or hereafter 

891 acquired by the Contractor or any user of such water within the Contractor's Service Area. Any such 

892 water shall not be considered Project Water under this Contract. In addition, this Contract shall not 

893 be construed as limiting or curtailing any rights which the Contractor or any water user within the 

894 Contractor's Service Area acquires or has available under any other contract pursuant to Federal 

895 Reclamation law. 

896 OPERATION AND MAINTENANCE BY SAN LUIS & DELTA-MENDOTA WATER 

897 AUTHORITY

898 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

899 responsibility for funding a portion of the costs of such O&M, have been transferred to the San Luis 

900 & Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement (8-07-

901 20-X0354) between the United States and the Operating Non-Federal Entity San Luis & Delta902 Mendota Water Authority. That separate agreement shall not interfere with or affect the rights or 

903 obligations of the Contractor or the United States hereunder. 

904 (b) The Contracting Officer has previously notified the Contractor in writing that 

905 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to the 

906 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, and therefore, the 

907 Contractor shall pay directly to the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

908 Authority, or to any successor approved by the Contracting Officer under the terms and conditions of 
Contract No. 14-06-200-4619A-LTR1 

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909 the separate agreement between the United States and the Operating Non-Federal Entity San Luis & 

910 Delta-Mendota Water Authority, described in subdivision (a) of this Article, all rates, charges, or 

911 assessments of any kind, including any assessment for reserve funds, which the Operating 

912 Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor determines, sets, 

913 or establishes for the O&M of the portion of the Project facilities operated and maintained by the 

914 Operating Non-Federal Entity or such successor. Such direct payments to the Operating Non-Federal 

915 Entity San Luis & Delta-Mendota Water Authority, or such successor shall not relieve the Contractor 

916 of its obligation to pay directly to the United States the Contractor’s share of the Project Rates, 

917 Charges, and Tiered Pricing Component(s) except to the extent the Operating Non-Federal Entity 

918 collects payments on behalf of the United States in accordance with the separate agreement identified 

919 in subdivision (a) of this Article. 

920 (c) For so long as the O&M of any portion of the Project facilities serving the 

921 Contractor is performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

922 Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 

923 Rates for Water Delivered under this Contract representing the cost associated with the activity being 

924 performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or its 

925 successor. 

926 (d) In the event the O&M of the Project facilities operated and maintained by the 

927 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

928 United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 

929 in writing, and present to the Contractor a revised Exhibit ”B” which shall include the portion of the 
Contract No. 14-06-200-4619A-LTR1 

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930 Rates to be paid by the Contractor for Project Water under this Contract representing the O&M costs 

931 of the portion of such Project facilities which have been re-assumed. The Contractor shall, thereafter, 

932 in the absence of written notification from the Contracting Officer to the contrary, pay the Rates, 

933 Charges, and the Tiered Pricing Component specified in the revised Exhibit “B” directly to the 

934 United States in compliance with Article 7 of this Contract. 

935 OPERATION AND MAINTENANCE BY CALIFORNIA DEPARTMENT OF WATER 

936 RESOURCES

937 28.1 (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

938 responsibility for funding a portion of the costs of such O&M, have been transferred to the California 

939 Department of Water Resources, an Operating Non-Federal Entity by a separate agreement (14-06-

940 200-9755) between the United States and Operating Non-Federal Entity California Department of 

941 Water Resources. This separate agreement shall not interfere with or affect the rights or obligations 

942 of the Contractor or the United States hereunder. 

943 (b) The Contracting Officer has previously notified the Contractor in writing that 

944 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 

945 Operating Non-Federal Entity California Department of Water Resources, and the Contractor shall 

946 pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or to any 

947 successor approved by the Contracting Officer under the terms and conditions of the separate 

948 agreement between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

949 Water Authority, described in subdivision (a) of Article 28 of this Contract, all rates, charges, or 

950 assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

951 Entity California Department of Water Resources, or such successor determines, sets, or establishes 
Contract No. 14-06-200-4619A-LTR1 

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952 for the O&M of the portion of the Project facilities operated and maintained by Operating Non953 Federal Entity California Department of Water Resources, or such successor. Such direct payments 

954 to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor shall 

955 not relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

956 of the Project Rates, Charges, and Tiered Pricing Components except to the extent the Operating 

957 Non-Federal Entity collects payments on behalf of the United States in accordance with the separate 

958 agreement identified in subdivision (a) of Article 28 of this Contract. 

959 (c) For so long as the O&M of any portion of the Project facilities serving the 

960 Contractor is performed by Operating Non-Federal Entity California Department of Water Resources, 

961 or any successor thereto, the Contracting Officer shall adjust those components of the Rates for 

962 Water Delivered under this Contract representing the cost associated with the activity being 

963 performed by Operating Non-Federal Entity California Department of Water Resources, or its 

964 successor. 

965 (d) In the event the O&M of the Project facilities operated and maintained by 

966 Operating Non-Federal Entity California Department of Water Resources is re-assumed by the 

967 United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 

968 in writing, and present to the Contractor a revised Exhibit “B” which shall include the portion of the 

969 Rates, Charges, and the Tiered Pricing Component to be paid by the Contractor for Project Water 

970 under this Contract representing the O&M costs of the portion of such Project facilities which have 

971 been re-assumed. The Contractor shall, thereafter, in the absence of written notification from the 

972 Contracting Officer to the contrary, pay the Rates, Charges, and Tiered Pricing Component(s) 
Contract No. 14-06-200-4619A-LTR1 

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973 specified in the revised Exhibit “B” directly to the United States in compliance with Article 7 of this 

974 Contract. 

975 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

976 29. The expenditure or advance of any money or the performance of any obligation of the 

977 United States under this Contract shall be contingent upon appropriation or allotment of funds. 

978 Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

979 under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

980 or allotted. 

981 BOOKS, RECORDS, AND REPORTS

982 30. (a) The Contractor shall establish and maintain accounts and other books and 

983 records pertaining to administration of the terms and conditions of this Contract, including: the 

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

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

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

987 may require. Subject to applicable Federal laws and regulations, each party to this Contract shall 

988 have the right during office hours to examine and make copies of the other party's books and records 

989 relating to matters covered by this Contract. 

990 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

991 records, or other information shall be requested from the Contractor by the Contracting Officer unless 

992 such books, records, or information are reasonably related to the administration or performance of 

993 this Contract. Any such request shall allow the Contractor a reasonable period of time within which 

994 to provide the requested books, records, or information. 

995 (c) At such time as the Contractor provides information to the Contracting Officer 

996 pursuant to subdivision (a) of this Article, a copy of such information shall be provided to the 

997 Operating Non-Federal Entity(ies). 

998 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED
Contract No. 14-06-200-4619A-LTR1 

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999 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1000 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1001 therein shall be valid until approved in writing by the Contracting Officer. 

1002 (b) The assignment of any right or interest in this Contract by either party shall not 

1003 interfere with the rights or obligations of the other party to this Contract absent the written 

1004 concurrence of said other party. 

1005 (c) The Contracting Officer shall not unreasonably condition or withhold approval 

1006 of any proposed assignment. 

1007 SEVERABILITY

1008 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

1009 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

1010 association or other form of organization whose primary function is to represent parties to Project 

1011 contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1012 enforceability of a provision included in this Contract and said person, entity, association, or 

1013 organization obtains a final court decision holding that such provision is legally invalid or 

1014 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

1015 parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

1016 decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

1017 within three months thereafter promptly agree on the appropriate revision(s). The time periods 

1018 specified above may be extended by mutual agreement of the parties. Pending the completion of the 

1019 actions designated above, to the extent it can do so without violating any applicable provisions of 

1020 law, the United States shall continue to make the quantities of Project Water specified in this 
Contract No. 14-06-200-4619A-LTR1 

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1021 Contract available to the Contractor pursuant to the provisions of this Contract which were not found 

1022 to be legally invalid or unenforceable in the final court decision. 

1023 RESOLUTION OF DISPUTES

1024 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

1025 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

1026 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

1027 any matter to Department of Justice, the party shall provide to the other party 30 days’ written notice 

1028 of the intent to take such action; Provided, That such notice shall not be required where a delay in 

1029 commencing an action would prejudice the interests of the party that intends to file suit. During the 

1030 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in an attempt 

1031 to resolve the dispute. Except as specifically provided, nothing herein is intended to waive or abridge 

1032 any right or remedy that the Contractor or the United States may have. 

1033 OFFICIALS NOT TO BENEFIT

1034 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1035 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1036 manner as other water users or landowners. 

1037 CHANGES IN CONTRACTOR’S SERVICE AREA

1038 35. (a) While this Contract is in effect, no change may be made in the Contractor's 

1039 Service Area by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

1040 except upon the Contracting Officer's written consent. 

1041 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1042 Officer will notify the Contractor of any additional information required by the Contracting Officer 

1043 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 
Contract No. 14-06-200-4619A-LTR1 

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1044 timely completion of the process. Such process will analyze whether the proposed change is likely 

1045 to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability of 

1046 the Contractor to pay for Project Water furnished under this Contract or to pay for any 

1047 Federally-constructed facilities for which the Contractor is responsible; and (iii) have an impact on 

1048 any Project Water rights applications, permits, or licenses. In addition, the Contracting Officer shall 

1049 comply with the NEPA and the ESA. The Contractor will be responsible for all costs incurred by the 

1050 Contracting Officer in this process, and such costs will be paid in accordance with Article 25 of this 

1051 Contract. 

1052 FEDERAL LAWS

1053 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

1054 validity or application in connection with the performance of the terms and conditions of this 

1055 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

1056 terms and conditions of this Contract unless and until relief from application of such Federal law or 

1057 regulation to the implementing provision of the Contract is granted by a court of competent 

1058 jurisdiction. 

1059 NOTICES

1060 37. Any notice, demand, or request authorized or required by this Contract shall be 

1061 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 

1062 to the Area Manager, South-Central California Area Office, 1243 “N” Street, Fresno, California 

1063 97321, and on behalf of the United States, when mailed, postage prepaid, or delivered to the City of 

1064 Avenal, 919 Skyline Boulevard, Avenal, California 93204. The designation of the addressee or the 

1065 address may be changed by notice given in the same manner as provided in this Article for other 

1066 notices. 

1067 CONFIRMATION OF CONTRACT

1068 38. The Contractor, after the execution of this Contract, shall furnish to the Contracting 

1069 Officer evidence that pursuant to the law of the State of California, the Contractor is a legally 

1070 constituted entity and the Contract is lawful, valid, and binding on the Contractor. This Contract 

1071 shall not be binding on the United States until such evidence has been provided to the Contracting 

1072 Officers satisfaction. 
Contract No. 14-06-200-4619A-LTR1 

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1073 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

year first above written. 

1074 THE UNITED STATES OF AMERICA 

1075 By: __________________________________________ 

1076 Regional Director, Mid-Pacific Region 

1077 Bureau of Reclamation 

1078 (SEAL) 

1079 Approved as to form: 

1080 _________________________________ 

1081 City Attorney 

1082 CITY OF AVENAL 

 

1083 By: __________________________________________ 

1084 Mayor 

1085 Attest: 

1086 By: _______________________________ 

1087 City Clerk 

1088 (H:\pub 440\LTRC\Final Draft LTRC’s – Fresno, Tracy\10-22-04 City of Avenal Final Draft 

1089 LTRC’s with exhibits. 
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23

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14

25

15

16

22

22 24

22

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19

21

23

30

15

31

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14 18

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25

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15

28

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3

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16

18 17 16

23

10

19

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24 20 21

22

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2

10

15

11

22

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T23S R18E

T21S R17E

T22S R18E

T21S R18E

T22S R17E

T23S R17E

T20S R17E

T23S R16E

T22S R16E

T20S R18E

T21S R16E

T21S R19E

T22S R19E

T23S R19E

T20S R16E

T20S R19E

L O S GATOS C REEK

·|}þ33

·|}þ41

BLAKELEY CANAL

CALIFORNIA AQUEDUCT

COALINGA CANAL

AVENAL

9

3

14

35

26

4

22

23

26

35

27

10 11

5

34

12 7

6 2

32

8

1 T24S R18E T24S R19E

City of Avenal

" Contract No. 14-06-200-4619A-LTR1

Exhibit A

Note: The Public Land Survey depicted here

was digitized from USGS topographic maps.

805-202-4

District Boundary

Contractor's Service Area

0 1 2 4

Miles

Date: October 15, 2004

File Name: N:\districts\contracts\city_of_avenal\city_of_avenal.mxd
Contract No. 14-06-200-4619A-LTR1 

EXHIBIT B

CITY OF AVENAL

Water Rates and Charges

Note: Rates and Charges are 2004 rates. This exhibit will be updated prior to execution 

 of the contract to reflect the current Rates and Charges. 

 2004 Rates Per Acre-Foot

 

 M&I Water

COST-OF-SERVICE (COS) RATE: 

 

Capital Rate: $26.32 

O&M Rates: 

 Water Marketing $5.01 

 Storage $6.38 

 Conveyance * 

 Direct Pumping (Project Use Energy) 

 Tracy Pumping * 

 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing $54.73 

 

CFO/PFR Adj Rate: ** $1.95 

TOTAL COS RATE: $94.39 

 

CONTRACT RATE: *** $16.45 

M&I FULL-COST RATE: $110.84 

Tiered Pricing Component >80% <=90% of Contract 

 Total [Full Cost Rate - COS Rate /2]: 

 

Tiered Pricing Component >90% of Contract 

 Total [Full Cost Rate - COS Rate]: 

 

SURCHARGES UNDER P.L. 102-575 

TO RESTORATION FUND**** $15.64 

 

* Conveyance and Conveyance Pumping Operation and maintenance costs were removed for ratesetting 

purposes and are to be billed directly to the water authorities. 

** Rate represents the Chief Financial Officer (CFO) adjustment and Provision for Replacement (PFR) 

credit for option 2 cost deferment to be distributed over a 5-year period beginning with 2003 water rates. 
Contract No. 14-06-200-4619A-LTR1 

 

*** Water deliveries are to be paid at the contract rate. Contract rate consists of the total O&M rate plus 

the 

CFO/PFR adjusted rate component. 

**** 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).