M&IOnly

Contract No.

14-06-200-1357A-LTRI

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

Central Valley Project, California

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

EL DORADO IRRIGATION DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM THE AMERICAN RIVER DIVISION

Table of Contents

Article No. Page No.

Preamble 1

Explanatory Recitals 1-4

1 Definitions 4-7

2 Tenn of Contract : 8-9

3 Water to be Made Available and Delivered to the Contractor.. 9-12

4 Time for Delivery of Water 12-13

5 Point of Diversion and Responsibility for Distribution of Water 13-14

6 Measurement of Water Within the Service Area 15-16

7 Rates and Method of Payment for Water. 16-21

8 Omitted 21

9 Sales, Transfers, or Exchanges of Water 21-23

10 Application of Payments and Adjustments 23

11 Temporary Reductions--Return Flows 24

12 Constraints on the Availability of Water 24-25

13 Omitted 25

14 Rules and Regulations 25

15 Water and Air Pollution Control.. 26

16 Quality of Water : 26

17 Water Acquired by the Contractor Other Than From the United States 26-28

18 Opinions and Detenninations 28
Contract No. 14-06-200-1357A-LTRl

Table of Contents - continued

Article No. Page No.

19 Coordination and Cooperation 28-30

20 Charges for Delinquent Payments 30

21 Equal Opportunity 30-31

22 General Obligation--Benefits Conditioned Upon Payment 31-32

23 Compliance With Civil Rights Laws and Regulations 32

24 Omitted 32

25 Contractor to Pay Certain Miscellaneous Costs 32-33

26 Water Conservation 33-34

27 Existing or Acquired Water or Water Rights .34

28 Omitted 34

29 Contingent on Appropriation or Allotment of Funds 34-35

30 Books, Records, and Reports 35

31 Assignment Limited--Successors and Assigns Obligated 35

32 Severability 35-36

33 Resolution ofDisputes 36

34 Officials Not to Benefit 37

35 Changes in Contractor's Service Area 37

36 Federal Laws 37

37 Notices 38

38 Confirmation ofContract 38

Signature Page 39

Exhibit A - Map ofContractor's Service Area

Exhibit B - Rates and Charges
Contract No.

14-06-200-1357A-LTR1

1 UNITED STATES

2 DEPARTMENT OF THE INTERIOR

3 BUREAU OF RECLAMAnON

4 Central Valley Project, California

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

6 AND

7 EL DORADO IRRIGATION DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM AMERICAN RIVER DIVISION

10 THIS CONTRACT, made this ~I day of .1~ ,20.tJ1J, ,in

11 pursuance generally ofthe Act ofJune 17, 1902 (32 Stat. 388), and acts amendatory or

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

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

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

15 October 27,1986 (l00 Stat. 3050), as amended, and Title XXXIV ofthe Act of October 30,1992

16 (l06 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law, between

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

18 EL DORADO IRRIGAnON DISTRICT, hereinafter referred to as the Contractor, a public

19 agency ofthe State ofCalifornia, duly organized, existing, and acting pursuant to the laws

20 thereof;

21 WITNESSETH, That:

22 EXPLANATORY RECITALS

23 [1 51] WHEREAS, the United States has constructed and is operating the Central Valley

24 Project (Project), California, for diversion, storage, carriage, distribution and beneficial use, for
Contract No. 14-06-200-1357A-LTR1

25 flood control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection

26 and restoration, generation and distribution of electric energy, salinity control, navigation and

27 other beneficial uses, ofwaters ofthe Sacramento River, the American River, the Trinity River,

28 and the San Joaquin River and their tributaries; and

29 [2nd

] WHEREAS, the United States constructed Folsom Dam and Reservoir,

30 hereinafter collectively referred to as~the American River Division facilities, which will be used

31 in part for the furnishing of water to the Contractor pursuant to the tenus ofthis Contract; and

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

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

34 [4th] WHEREAS, the Contractor and the United States entered into Contract

35 No. 14-06-200-1357A, as amended, which established tenus for the delivery to the Contractor of

36 Project Water from the American River Division from January 1, 1965, through December 31,

37 2004, to the El Dorado Hills area (hereinafter referred to as the El Dorado Hills contract); and

38 [4.1] WHEREAS, the County ofEl Dorado and the United States entered into Contract

39 No. 14-06-200-7312A, dated July 25, 1958, which established tenus for the delivery to the

40 Contractor of Project Water from the American River Division through October 31, 1999, to the

41 Lake Hills Estate area (hereinafter referred to as the Lake Hills Estates contract); and

42 [4.2] WHEREAS, the County ofEl Dorado officially assigned the Lake Hills Estates

43 contract to the Contractor on December 18, 1973, with the approval ofthe United States; and

44 [5th

] WHEREAS, the Contractor and the United States have pursuant to subsection

45 3404(c)(l) ofthe Central Valley Project Improvement Act (CVPIA), subsequently entered into

46 interim renewal contracts identified as Contract Nos. 14-06-200-73l2A-IR1, 14-06-200-7312A47 IR2, 14-06-200-7312A-IR3, 14-06-200-7312A-IR4, 14-06-200-7312A-IR5, 14-06-200-7312A48 IR6, and 14-06-200-7312A-IR7, the current of which is hereinafter referred to as the Existing

49 Contract, which provided for the continued water service to the Contractor from March 1, 2004,

50 through February 29, 2006; and

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Contract No. 14-06-200-1357A-LTR1

[5.1] WHEREAS, Article 3(h) ofContract No. 14-06-200-7312A-IR2 states that the

52 El Dorado Hills and Lake Hills Estates contracts will be fully integrated into one long-tenn

53 renewal contract; and

54 [6th

] WHEREAS, Section 3404(c) ofthe CVPlA provides for long-tenn renewal of

55 Existing Contracts following completion of appropriate environmental documentation, including

56 a programmatic environmental impact statement (PElS) pursuant to the National EnviroDmental

57 Policy Act (NEPA), analyzing the direct and indirect impacts and benefits of implementing the

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

59 [6.1] WHEREAS, the Contracting Officer and the Contractor are entering into this

60 contract pursuant to Subsection 3404(c)(3) ofthe CVPlA; and

61 [7th] WHEREAS, the United States has completed the PElS and all other appropriate

62 environmental review necessary to provide for long-tenn renewal ofthe El Dorado Hills and

63 Lake Hills Estates contracts; and

64 [8 th] WHEREAS, the Contractor has requested the long-tenn renewal ofthe El Dorado

65 Hills and Lake Hills Estates contracts, pursuant to the tenns ofthese contracts, Federal

66 Reclamation law, and the laws ofthe State ofCalifomia, for water service from the Project; and

67 [9th] WHEREAS, the United States has detennined that the Contractor has fulfilled all

68 ofits obligations under the El Dorado Hills and Lake Hills Estates contracts; and

69 [10th] WHEREAS, the Contractor has demonstrated to the satisfaction ofthe

70 Contracting Officer that the Contractor has utilized the Project Water supplies available to it for

71 reasonable and beneficial use and/or has demonstrated projected future demand for water use

72 such that the Contractor has the capability and expects to utilize fully for reasonable and

73 beneficial use the quantity of Project Water to be made available to it pursuant to this Contract;

74 and

.,

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Contract No. 14-06-200-1357A-LTRI

75 [11 th] WHEREAS, water obtained from the Project has been relied upon by urban and

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

77 as an essential portion ofits water supply; and

78 [12th] WHEREAS, the economies ofregions within the Project, including the

79 Contractor's, depend upon the continued availability of water, including water service from the

80 Project; and

81 [13th] WHEREAS, the Secretary of the Interior (Interior) intends through coordination,

82 cooperation, and partnerships to pursue measures to improve water supply, water quality, and

83 reliability ofthe Project for all Project purposes; and

84 [14th] WHEREAS, the mutual goals of the United States and the Contractor include: to

85 provide for reliable Project Water supplies; to control costs ofthose supplies; to achieve

86 repayment ofthe Project as required by law; to guard reasonably against Project Water

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

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

89 ofthe United States relative to the Project; and

90 [15th] WHEREAS, the parties intend by this Contract to develop a more cooperative

91 relationship in order to achieve their mutual goals; and

92 [16th] WHEREAS, the United States and the Contractor are willing to enter into this

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

94 NOW, THEREFORE, in consideration ofthe mutual and dependent covenants herein

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

96 DEFINITIONS

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

98 incompatible with the intent ofthe parties as expressed in this Contract, the term:

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

100 both dates inclusive;

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III

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Contract No. 14-06-200-1357A-LTRI

(b) "Charges" shall mean the payments required by Federal Reclamation law

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

annually by the Contracting Officer pursuant to this Contract;

(c) "Condition of Shortage" shall mean a condition respecting the Project

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

Contract Total;

(d) "Contracting Officer" shall mean the Secretary's duly authorized

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

regulation;

(e) "Contract Total" shall mean the maximum amount of water to which the

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

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

permitted to provide Project Water under this Contract as described in Exhibit "A" attached

hereto, which may be modified from time to time in accordance with Article 35 ofthis Contract

without amendment ofthis Contract;

(g) "CVPIA" shall mean the Central Valley Project Improvement Act,

Title XXXIV ofthe Act of October 30,1992 (106 Stat. 4706);

(h-i) Omitted;

CD "Full Cost Rate" shall mean an annual rate as detennined by the

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

Project irrigation or municipal and industrial (M&I) functions, as appropriate, of facilities in

service including all operation and maintenance (O&M) deficits funded, less payments, over

such periods as may be required under Federal Reclamation law, or applicable contract

provisions. Interest will accrue on both the construction'expenditures and funded O&M deficits

from October 12, 1982, on costs outstanding at that date, or from the date incurred in the case of

costs arising subsequent to October 12, 1982, and shall be calculated in accordance with

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Contract No. 14-06-200-1357A-LTRI

127 subsections 202(3)(B) and (3)(C) of the Reclamation Reform Act of 1982 (RRA). The Full Cost

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

129 ofthe Rules and Regulations for the RRA;

130 (k-l) Omitted;

131 (m) "Irrigation Water" shall mean water made available from the Project that

132 is used primarily in the production otagricultural crops or livestock, including domestic use

133 incidental thereto, and watering of livestock;

134 (n) Omitted;

135 (0) "Municipal and Industrial Water" or "M&I Water" shall mean Project

136 Water, other than Irrigation Water, made available to the Contractor. M&I Water shall include

137 water used for human use and purposes such as the watering of landscaping or pasture for

138 animals (e.g., horses) which are kept for personal enjoyment or water delivered to land holdings

139 operated in units of less than five acres unless the Contractor establishes to the satisfaction of the

140 Contracting Officer that the use of water delivered to any such landholding is a use described in

141 subdivision (m) ofthis Article;

142 (P) "M&I Full Cost Water Rate" shall mean the Full Cost Rate applicable to

143 the delivery ofM&I Water;

144 (q) "Operation and Maintenance" or "O&M" shall mean normal and

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

146 maintenance of Project facilities;

147 (r) Omitted;

148 (s) "Project" shall mean the Central Valley Project owned by the United

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

150 (t) "Project Contractors" shall mean all parties who have water service

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

152 Reclamation law;

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Contract No. 14-06-200-1357A-LTRI

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

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

155 accordance with the terms and conditions ofwater rights acquired pursuant to California law;

156 (v) "Rates" shall mean the payments determined annually by the Contracting

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

158 as described in subdivision (a) of Article 7 ofthis Contract;

159 (w) "Recent Historic Average" shall mean the most recent five-year average of

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

161 preceding contract(s);

162 (x) "Secretary" shall mean the Secretary ofthe Interior, a duly appointed

163 successor, or an authorized representative acting pursuant to any authority ofthe Secretary and

164 through any agency ofthe Department ofthe Interior;

165 (y) "Tiered Pricing Component" shall be the incremental amount to be paid

166 for each acre-foot of Water Delivered as described in subdivision G) ofArticle 7 ofthis Contract;

167 (z) "Water Delivered" or "Delivered Water" shall mean Project Water

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

169 Officer;

170 (aa) "Water Made Available" shall mean the estimated amount of Project

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

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

173 (bb) "Water Scheduled" shall mean Project Water made available to the

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

175 and Contracting Officer, pursuant to subdivision (b) of Article 4 ofthis Contract; and

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

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

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Contract No. 14-06-200-1357A-LTR1

178 TERM OF CONTRACT

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

180 2045, and supersedes the Existing Contract. In the event the Contractor wishes to renew this

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

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

183 (b) Omitted.

184 (c) This Contract shall be renewed for successive periods of 40 years each

185 which periods shall be consistent with then-existing Reclamation-wide policy, under terms and

186 conditions mutually agreeable to the parties and consistent with Federal and State law. The

187 Contractor shall be afforded the opportunity to comment to the Contracting Officer on the

188 proposed adoption and application of any revised policy applicable to the delivery of Project

189 M&I Water that would limit the term of any subsequent renewal contract with the Contractor for

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

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

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

193 Contract, of whether a conversion to a contract under subsection 9(c)(1) of Section 9 ofthe

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

195 during the term ofthis Contract, all authorized Project construction expected to occur will have

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

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

198 allocation is made, and subject to satisfaction ofthe condition set out in this subdivision, this

199 Contract shall, at the request ofthe Contractor, be converted to a contract under said subsection

200 (c)(1) of Section 9, subject to applicable Federal law and under stated terms and conditions

201 mutually agreeable to the Contractor and the Contracting Officer. A condition for such

202 conversion to occur shall be a determination by the Contracting Officer that, account being taken

203 ofthe amount credited to return by the Contractor as provided for under Federal Reclamation

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Contract No. 14-06-200-1357A-LTRI

204 law, the remaining amount of construction costs assignable for ultimate return by the Contractor

205 can probably be repaid to the United States within the tenn of a contract under said subsection

206 (c)(1) of Section 9. Ifthe remaining amount of costs that are properly assignable to the

207 Contractor cannot be detennined during the tenn ofthis Contract, the Contracting Officer shall

208 notify the Contractor, and provide the reason(s) why such a detennination could not be made.

209 Further, the Contracting Officer shalf make such a detennination as soon thereafter as possible so

210 as to pennit, upon request ofthe Contractor and satisfaction ofthe condition set out above,

211 conversion to a contract under said subsection (c)(1) of Section 9. In the event such

212 detennination of costs has not been made at a time which allows conversion ofthis Contract

213 during the tenn ofthis Contract or the Contractor has not requested conversion ofthis Contract

214 within such tenn, the parties shall incorporate in any subsequent renewal contract as described in

215 subdivision (c) ofthis Article a provision that carries forth in substantially identical tenns the

216 provisions ofthis subdivision.

217 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

218 ..,.J. (a) During each Year, consistent with all applicable State water rights,

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

220 this Contract, the Contracting Officer shall make available for delivery to the Contractor

221 7,550 acre-feet of Project Water for M&I purposes. Water Delivered to the Contractor in

222 accordance with this subdivision shall be scheduled and paid for pursuant to the provisions of

223 Articles 4 and 7 of this Contract.

224 (b) Because the capacity ofthe Project to deliver Project Water has been

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

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

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

228 Article in any given Year is uncertain. The Contracting Officer's modeling referenced in the

229 PElS projected that the Contract Total set forth in this Contract will not be available to the

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

231 water made available to the Contractor's Service Area was 6,716 acre-feet. Nothing in

232 subdivision (b) ofthis Article shall affect the rights and obligations ofthe parties under any

233 provision of this Contract.

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

235 applicable legal requirements.

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

237 furnished pursuant to this Contract. Ground-water recharge programs (direct, indirect, or in

238 lieu), ground-water banking programs, surface water storage programs, and other similar

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

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

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

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

243 Article 26 ofthis Contract; Provided, further, That such water conservation plan demonstrates

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

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

246 compliance with Federal Reclamation Law. Groundwater recharge programs, ground-water

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

248 Water or other water furnished pursuant to this Contract conducted outside the Contractor's

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

250 will be based upon environmental documentation, Project Water rights, and Project operational

251 concerns. The Contracting Officer will address such concerns in regulations, policies, or

252 guidelines.

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

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

255 ofthis Contract undertaken pursuant to Section 7 ofthe Endangered Species Act of 1973 (ESA),

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Contract No. 14-06-200-1357A-LTR1

256 as amended, that are within the Contractor's legal authority to implement. The Existing

257 Contracts, which evidence in excess of 40 years of diversions for M&I purposes ofthe quantities

258 of water provided in subdivision (a) ofArticle 3 ofthis Contract, will be considered in

259 developing an appropriate baseline for biological assessment prepared pursuant to the ESA, and

260 any other needed environmental review. Nothing herein shall be construed to prevent the

261 Contractor from challenging or seeking judicial relief in a court of competent jurisdiction with

262 respect to any biological opinion or other environmental documentation referred to in this

263 Article.

264 (f) Following the declaration of Water Made Available under Article 4 ofthis

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

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

267 Total under Article 3 ofthis Contract during the Year without adversely impacting other Project

268 Contractors. At the request ofthe Contractor, the Contracting Officer will consult with the

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

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

271 the Contracting Officer will announce the availability ofsuch water and shall so notify the

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

273 and other Project Contractors capable oftaking such water to determine the most equitable and

274 efficient allocation ofsuch water. Ifthe Contractor requests the delivery of any quantity ofsuch

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

276 with applicable statutes, regulations, guidelines, and policies.

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

278 subsequent Year some or all ofthe Water Made Available to the Contractor during the current

279 Year referred to as "carryover." The Contractor may request permission to use during the

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

281 the Contractor during the subsequent Year referred to as "preuse." The Contracting Officer's

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

283 guidelines, and policies.

284 (h) The Contractor's right pursuant to Federal Reclamation law and applicable

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

286 during the term thereof and any subsequent renewal contracts, as described in Article 2 ofthis

287 Contract, during the tenns thereofshall not be disturbed so long as the Contractor shall fulfill all

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

289 sentence shall affect the Contracting Officer's ability to impose shortages under Article 11 or

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

291 contracts.

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

293 delivered for purposes other than those described in subdivisions (m) and (0) of Article 1 ofthis

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

295 conditions ofsuch approval.

296 U) The Contracting Officer shall make reasonable efforts to protect the water

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

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

299 extent pennitted by law, in administrative proceedings related to the Project Water rights;

300 Provided" That the Contracting Officer retains the right to object to the substance of the

301 Contractor's position in such a proceeding; Provided further, That in such proceedings the

302 Contracting Officer shall recognize the Contractor has a legal right under the terms ofthis

303 Contract to use Project Water.

304 TIME FOR DELIVERY OF WATER

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

306 shall announce the Contracting Officer's expected declaration ofthe Water Made Available.

307 Such declaration will be expressed in tenns of both Water Made Available and the Recent

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308 Historic Average and will be updated monthly, and more frequently if necessary, based on then309 current operational and hydrologic conditions and a new declaration with changes, if any, to the

310 Water Made Available will be made. The Contracting Officer shall provide forecasts of Project

311 operations and the basis ofthe estimate, with relevant supporting information, upon the written

312 request ofthe Contractor. Concurrently with the declaration ofthe Water Made Available, the

313 Contracting Officer shall provide the"Contractor with the updated Recent Historic Average.

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

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

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

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

318 March 1. The Contracting Officer shall use all reasonable means to deliver Proj ect Water

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

320 (c) The Contractor shall not schedule Project Water in excess ofthe quantity

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

322 Contractor's Service Area or to sell, transfer, or exchange pursuant to Article 9 ofthis Contract

323 during any Year.

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

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

326 initial schedule submitted by the Contractor pursuant to subdivision (b) ofthis Article, or any

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

328 time prior to 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 ofthis

. 331 Contract shall be delivered to the Contractor at the Contractor's point of diversion in Folsom

332 Lake and any additional point or points of delivery either on Project facilities or another location

333 or locations mutually agreed to in writing by the Contracting Officer and the Contractor.

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334 (b) Omitted.

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

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

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

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

339 United States, or other appropriate entity as designated by the Contracting Officer at the point or

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

341 either party to this Contract, the Contracting Officer shall investigate, or cause to be investigated,

342 the accuracy ofsuch measurements and shall take any necessary steps to adjust any errors

343 appearing therein. For any period oftime when accurate measurements have not been made, the

344 Contracting Officer shall consult with the Contractor prior to making a final determination ofthe

345 quantity delivered for that period oftime.

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

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

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

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

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

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

352 carriage, handling, use, disposal, or distribution ofsuch Water Delivered beyond such delivery

353 points, except for any damage or claim arising out of (i) acts or omissions ofthe Contracting

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

355 situation resulting in any damage or claim; (ii) willful misconduct ofthe Contracting Officer or

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

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

358 malfunction offacilities owned and/or operated by the United States.

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359 MEASUREMENT OF WATER WITHIN THE SERVICE AREA

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

361 Contracting Officer. The Contractor shall ensure that all surface water delivered for M&I

362 purposes is measured at each M&I service connection. The water measuring devices or water

363 measuring methods of comparable effectiveness must be acceptable to the Contracting Officer.

364 The Contractor shall be responsible tor installing, operating, and maintaining and repairing all

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

366 United States. The Contractor shall use the information obtained from such water measuring

367 devices or water measuring methods to ensure its proper management ofthe water, to bill water

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

369 purposes by customer class as defined in the Contractor's water conservation plan provided for

370 in Article 26 ofthis Contract. Nothing herein contained, however, shall preclude the Contractor

371 from establishing and collecting any charges, assessments, or other revenues authorized by

372 California law. The Contractor shall include a summary of all its annual surface water deliveries

373 in the annual report described in subdivision (c) of Article 26.

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

375 execution ofthis Contract, the Contractor shall provide to the Contracting Officer a written

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

377 to implement subdivision (a) ofthis Article and identifying the M&I service connections or

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

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

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

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

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

383 ofthe measuring devices or water measuring methods identified in the Contractor's report and if

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

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Contract No. 14-06-200-1357A-LTRI

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

386 inadequate, the parties shall within 60 days following the Contracting Officer's response,

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

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

389 compliance with subdivision (a) ofthis Article.

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

391 Service Area after the effective date ofthis Contract shall also comply with the measurement

392 provisions described in subdivision (a) ofthis Article.

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

394 California in writing by April 30 of each Year ofthe monthly volume ofsurface water delivered

395 within the Contractor's Service Area during the previous Year.

396 (e) The Contractor shall inform the Contracting Officer on or before the

397 20thcalendar day of each month ofthe quantity ofM&I Water taken during the preceding month.

398 RATES AND METHOD OF PAYMENT FOR WATER

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

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

401 accordance with (i) the Secretary's then-existing ratesetting policy for M&I Water. Such

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

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

404 regulations, or policies; and (iii) other applicable provisions ofthis Contract. Payments shall be

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

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

407 Component applicable to the Contractor upon execution ofthis Contract are set forth in Exhibit

408 "8," as may be revised annually.

409 (b) The Contracting Officer shall notify the Contractor ofthe Rates, Charges,

4] 0 and Tiered Pricing Component as follows:

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Contract No. 14-06-200-1357A-LTRI

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

412 provide the Contractor an estimate ofthe Charges for Project Water that will be applied to the

413 period October 1, ofthe current Calendar Year, through September 30, ofthe following Calendar

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

415 to review and comment on such estimates. On or before September 15 of each Calendar Year,

416 the Contracting Officer shall notify the Contractor in writing ofthe Charges to be in effect during

417 the period October 1 ofthe current Calendar Year, through September 30, ofthe following

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

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

420 shall make available to the Contractor an estimate ofthe Rates and Tiered Pricing Component

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

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

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

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

425 Component to be in effect for the upcoming Year, and such notification shall revise Exhibit "B."

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

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

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

429 pursuant to the applicable Rate(s) set under subdivision (a) ofthis Article, for the Project Water

430 scheduled to be delivered pursuant to this Contract during the first two calendar months ofthe

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

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

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

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

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

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

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Contract No. 14-06-200-1357A-LTRI

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

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

439 then in effect, to assure that Project Water is not delivered to the Contractor in advance ofsuch

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

441 this Contract equals the quantity of Water Scheduled and paid for by the Contractor, no

442 additional Project Water shall be delivered to the Contractor unless and until an advance

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

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

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

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

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

448 day of February.

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

450 subdivision (c) ofthis Article to the United States for Water Delivered, at the Charges and the

451 appropriate Tiered Pricing Component then in effect, before the end ofthe month following the

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

453 as shown in the water delivery report for the subject month prepared by the Operating Non454 Federal Entity or, ifthere is no Operating Non-Federal Entity, by the Contracting Officer. The

455 water delivery report shall be deemed a bill for the payment ofCharges and the applicable Tiered

456 Pricing Component for Water Delivered. Adjustment for overpayment or underpayment of

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

458 for the next month. Any amount to be paid for past due payment ofCharges and the Tiered

459 Pricing Component shall be computed pursuant to Article 20 ofthis Contract.

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

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

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

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Contract No. 14-06-200-1357A-LTRI

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

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

465 (a) ofthis Article.

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

467 Contract may be paid from any revenues available to the Contractor.

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

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

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

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

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

473 administration ofthe financial terms and conditions ofits long-term contracts, in accordance

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

475 The Contracting Officer shall, each Year upon request ofthe Contractor, provide to the

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

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

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

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

480 (i) The parties acknowledge and agree that the efficient administration ofthis

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

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

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

484 the mutual best interest ofthe parties, it is expressly agreed that the parties may enter into

485 agreements to modify the mechanisms, policies, and procedures for any ofthose purposes while

486 this Contract is in effect without amending this Contract.

487 CD (l) Beginning at such time as deliveries of Project Water in a Year

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

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Contract No. 14-06-200-1357A-LTR1

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

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

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

492 Contract Total, shall equal one-half ofthe difference between the Rate established under

493 subdivision (a) ofthis Article and the Irrigation Full Cost Water Rate or M&I Full Cost Water

494 Rate, whichever is applicable. The Tiered Pricing Component for the amount of Water

495 Delivered which exceeds 90 percent ofthe Contract Total shall equal the difference between

496 (i) the Rate established under subdivision (a) ofthis Article and (ii) the M&I Full Cost Water

497 Rate.

498 (2) Omitted.

499 (3) For purposes of determining the applicability ofthe Tiered Pricing

500 Components pursuant to this Article, Water Delivered shall include Project Water that the

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

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

503 subdivision (f) of Article 3 ofthis Contract.

504 (k) For the term ofthis Contract, Rates under the respective ratesetting

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

506 capital costs ofthe Project, as those terms are used in the then-current Project ratesetting

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

508 in accordance with the relevant Project ratesetting policy. Changes ofsignificance in practices

509 which implement the Contracting Officer's ratesetting policies will not be implemented until the

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

511 impact ofthe proposed change.

512 (1) Except as provided in subsections 3405(a)(1)(B) and 3405(f) ofthe

513 CVPIA, the Rates for Project Water transferred by the Contractor shall be the Contractor's Rates

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

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Contract No. 14-06-200-1357A-LTRI

515 Officer in the delivery ofthe transferred Project Water to the transferee's point of delivery in

516 accordance with the then-applicable Project ratesetting policy. Ifthe Contractor is receiving

517 lower Rates and Charges because of inability to pay and is transferring Project Water to another

518 entity whose Rates and Charges are not adjusted due to inability to pay, the Rates and Charges

519 for transferred Project Water shall be the Contractor's Rates and Charges and will not be

520 adjusted to reflect the Contractor's inability to pay.

521 (m) Omitted.

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

523 not legally obligated to pay any Project deficits claimed by the United States to have accrued as

524 ofthe date ofthis Contract or deficit-related interest charges thereon. By entering into this

525 Contract, the Contractor does not waive any legal rights or remedies that it may have with

526 respect to such disputed issues. Notwithstanding the execution ofthis Contract, and payments

527 made hereunder, the Contractor may challenge in the appropriate administrative or judicial

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

529 term ofthe Existing Contracts and any preceding interim renewal contracts, if applicable;

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

531 in the Rates; (4) the application by the United States of payments made by the Contractor under

532 its Existing Contracts and any preceding interim renewal contract, if applicable; and (5) the

533 application ofsuch payments in the Rates. The Contracting Officer agrees that the Contractor

534 shall be entitled to the benefit of any administrative or judicial ruling in favor of any other

535 Project M&I contractor on any ofthese issues, and credits for payments heretofore made,

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

537 8. Omitted.

538 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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Contract No. 14-06-200-1357A-LTR1

541 California ifsuch sale, transfer, or exchange is authorized by applicable Federal and State laws,

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

543 Water under this Contract may take place without the prior written approval ofthe Contracting

544 Officer, except as provided for in subdivision (b) ofthis Article, and no such sales, transfers, or

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

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

547 documentation should include, as appropriate, an analysis of ground-water impacts and

548 economic and social effects, including environmental justice, ofthe proposed water transfers on

549 both the transferor and transferee.

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

551 transfers ofthe type historically carried out among Project Contractors located within the same

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

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

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

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

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

557 Following the completion ofthe environmental documentation, such transfers addressed in such

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

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

560 and the Contracting Officer's compliance determination shall be reviewed every five years and

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

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

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

564 (c) For a water transfer to qualify under subdivision (b) ofthis Article, such

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

566 years, for M&I use, ground-water recharge, water banking, or fish and wildlife resources; not

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Contract No. 14-06-200-1357A-LTRI

567 lead to land conversion; and be delivered to established cropland, wildlife refuges, ground-water

568 basins or M&I use; (ii) occur within a single Year; (iii) occur between a willing seller and a

569 willing buyer; (iv) convey water through existing facilities with no new construction or

570 modifications to facilities and be between existing Project Contractors and/or the Contractor and

571 the United States, Department ofthe Interior; and (v) comply with all applicable Federal, State,

572 and local or tribal laws and requirements imposed for protection ofthe environment and Indian

573 Trust Assets, as defined under Federal law.

574 APPLICADON OF FAYMENTS AND ADJUSTMENTS

575 10. (a) The amount of any overpayment by the Contractor of the Contractor's

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

577 current liabilities ofthe Contractor arising out ofthis Contract then due and payable.

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

579 refund, any amount ofsuch overpayment, at the option ofthe Contractor, may be credited against

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

581 such refund or adjustment shall constitute the sole remedy ofthe Contractor or anyone having or

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

583 credits and refunds of overpayments shall be made within 30 days ofthe Contracting Officer

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

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

586 made.

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

588 Contractor pursuant to Article 25 ofthis Contract shall be adjusted to reflect the actual costs

589 when the work has been completed. Ifthe advances exceed the actual costs incurred, the

590 difference will be refunded to the Contractor. Ifthe actual costs exceed the Contractor's

591 advances, the Contractor will be billed for the additional costs pursuant to Article 25.
Contract No. 14-06-200-1357A-LTRI

592 TEMPORARY REDUCTIONS--RETURN FLOWS

593 11. (a) Subject to: (i) the authorized purposes and priorities ofthe Project and the

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

595 contracts, or renewals thereof, providing for water deliveries from the Project, the Contracting

596 Officer shall make all reasonable efforts to optimize Project Water deliveries to the Contractor as

597 provided in this Contract.

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

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

600 investigation, inspection, maintenance, repair, or replacement of any ofthe Project facilities or

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

602 feasible the Contracting Officer will give the Contractor due notice in advance ofsuch temporary

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

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

605 reduction in such service. Upon resumption ofservice after such reduction or discontinuance,

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

607 Project Water which would have been delivered hereunder in the absence ofsuch discontinuance

608 or reduction.

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

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

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

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

613 pursuant to this Contract within the Contractor's Service Area by the Contractor or those

614 claiming by, through, or under the Contractor.

615 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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Contract No. 14-06-200-1357A-LTR1

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

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

620 Contractor ofsaid determination as soon as practicable.

621 (b) Ifthere is a Condition of Shortage because of errors in physical operations

622 ofthe Project, drought, other physical causes beyond the control ofthe Contracting Officer or

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

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

625 any ofits officers, agents, or employees for any damage, direct or indirect, arising therefrom.

626 (c) Omitted.

627 (d) ProjectWater furnished under this Contract will be allocated in

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

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

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

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

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

633 adopted after the effective date ofthis Contract was promulgated; (ii) the substance ofsuch a

634 policy; or (iii) the applicability ofsuch a policy. By agreeing to the foregoing, the Contracting

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

636 proceeding.

637 13. Omitted.

638 RULES AND REGULATIONS

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

640 pursuant to this Contract is subject to the applicable provisions of Federal Reclamation law and

641 the applicable rules and regulations promulgated by the Secretary ofthe Interior under such law.

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Contract No. 14-06-200-1357A-LTRI

642 WATER AND AIR POLLUTION CONTROL

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

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

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

646 authorities.

647 QUALITY OF WATER

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

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

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

651 2(b) ofthe Act of August 26,1937 (50 Stat. 865), as added by Section 101 ofthe Act of

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

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

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

655 warrant the quality of Water Delivered to the 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

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

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

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

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

662 Service Area.

663 WATER ACQUIRED BY THE CONTRACTOR

664 OTHER THAN FROM THE UNITED STATES

665

666

17. (a)

(b)

Omitted.

Water or water rights now owned or hereafter acquired by the Contractor,

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

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

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Contract No. 14-06-200-1357A-LTR1

669 approval ofthe Contracting Officer and the execution of any contract determined by the

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

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

672 facilities and deliver said water to lands within the Contractor's Service Area, including

673 Ineligible Lands subject to payment to the United States of an appropriate rate as determined by

.. 674 the applicable Project ratesetting policy and the Project use power policy, ifsuch Project use

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

676 (2) Delivery ofsuch non-Project water in and through Project facilities

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

678 purposes as determined by the Contracting Officer; (ii) reduce the quantity or quality ofwater

679 available to other Project Contractors; (iii) interfere with the delivery of contractual water

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

681 maintenance ofthe Project facilities.

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

683 distribution ofthe non-Project water before it is introduced into or after it is delivered from the

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

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

686 persons or property, direct or indirect, resulting from the acts ofthe Contractor, its officers',

687 employees', agents' or assigns', act(s) in (i) extracting or diverting non-Project water from any

688 source, or (ii) diverting such non-Project water into Project facilities.

689 (4) Diversion ofsuch non-Project water into Project facilities shall be

690 consistent with all applicable laws, and ifinvolving groundwater, consistent with any applicable

691 ground-water management plan for the area from which it was extracted.

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

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

694 ofthe facilities declared to be available by the Contracting Officer for conveyance and

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Contract No. 14-06-200-1357A-LTR1

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

696 non-Project contractors.

697 OPINIONS AND DETERMINATIONS

698 18. (a) Where the terms ofthis Contract provide for actions to be based upon the

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

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

701 determinations. Both parties, notwithstanding any other provisions ofthis Contract, expressly

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

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

704 provided in a timely manner. Nothing in subdivision (a) of Article 18 ofthis Contract is

705 intended to or shall affect or alter the standard ofjudicial review applicable under Federal law to

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

707 statute or regulation.

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

709 necessary to administer this Contract that are consistent with the provisions ofthis Contract, the

710 laws ofthe United States and ofthe State ofCalifornia, and the rules and regulations

711 promulgated by the Secretary ofthe Interior. Such determinations shall be made in consultation

712 with the Contractor to the extent reasonably practicable.

713 COORDINATION AND COOPERATION

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

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

716 with other affected Project Contractors, in order to improve the operation and management ofthe

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

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

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

720 Project financial matters including, but not limited to, budget issues. The communication,

28
Contract No. 14-06-200-1357A-LTR1

721 coordination, and cooperation provided for hereunder shall extend to all provisions ofthis

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

723 and detenninations to be made by the respective party.

724 (b) Within 120 days following the effective date ofthis Contract, the

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

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

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

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

729 and interaction regarding significant decisions concerning Project O&M on a real-time basis.

730 (c) In light ofthe factors referred to in subdivision (b) of Article 3 ofthis

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

732 intent:

733 (1) The Contracting Officer will, at the request ofthe Contractor,

734 assist in the development ofintegrated resource management plans for the Contractor. Further,

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

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

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

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

739 supply, water quality, and reliability ofthe Project for all Project purposes.

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

741 State of California to seek improved water resource management.

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

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

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

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

746 management activities. and other issues as appropriate.

29
747 (d)

Contract No. 14-06-200-1357A-LTR1

Without limiting the contractual obligations ofthe Contracting Officer

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

749 constrain the Contracting Officer's ability to communicate, coordinate, and cooperate with the

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

751 protect health, safety, or the physical integrity ofstructures or facilities.

752 CHARGES ~FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

759 charge ofsix percent per year for each day the payment is delinquent beyond the due date.

760 Further, the Contractor shall pay any fees incurred for debt collection services associated with a

761 delinquent payment.

762 (b) The interest charge rate shall be the greater ofthe rate prescribed quarterly

763 in the Federal Register by the Department ofthe Treasury for application to overdue payments,

764 or the interest rate of one-half of one percent per month prescribed by Section 6 ofthe

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

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

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

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

769 accrued interest, and finally to the overdue payment.

770 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

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

780 notices to be provided by the Contracting Officer setting forth the provisions ofthis

781 nondiscrimination clause.

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Contract No. 14-06-200-1357A-LTRI

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

783 placed by or on behalf ofthe Contractor, state that all qualified applicants will receive

784 consideration for employment without discrimination because ofrace, color, religion, sex, or

785 national origin. .

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

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

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

789 representative ofthe Contractor's commitments under Section 202 ofExecutive Order 11246 of

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

791 employees and applicants for employment.

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

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

794 ofthe Secretary ofLabor.

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

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

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

798 Officer and the Secretary ofLabor for purposes of investigation to ascertain compliance with

799 such rules, regulations, and orders.

800 (f) In the event ofthe Contractor's noncompliance with the nondiscrimination

801 clauses ofthis Contract or with any ofthe said rules, regulations, or orders, this Contract may be

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

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

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

805 provided in said Executive Order, or by rule, regulation, or order ofthe Secretary of Labor, or as

806 otherwise provided by law.

807 (g) The Contractor will include the provisions ofparagraphs (a) through (g) in

808 every subcontract or purchase order unless exempted by the rules, regulations, or orders ofthe

809 Secretary of Labor issued pursuant to Section 204 ofsaid amended Executive Order, so that such

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

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

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

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

814 litigation with a subcontractor or vendor as a result ofsuch direction, the Contractor may request

815 the United States to enter into such litigation to protect the interests ofthe United States.

816 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

818 this Contract is a general obligation ofthe Contractor notwithstanding the manner in which the

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Contract No. 14-06-200-1357A-LTRI

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

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

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

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

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

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

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

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

827 (c) With respect to subdivision (b) ofthis Article, the Contractor shall have no

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

829 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULAnONS

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

831 (42 U.S.C. 2000d), Section 504 ofthe Rehabilitation Act of 1975 (P.1. 93-112, as amended), the

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

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

834 U.S. Department ofthe Interior and/or Bureau of Reclamation.

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

836 grounds ofrace, color, national origin, handicap, or age, be excluded from participation in, be

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

838 receiving financial assistance from the Bureau ofReclamation. By executing this Contract, the

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

840 including permitting officials ofthe United States to inspect premises, programs, and documents.

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

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

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

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

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

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

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

848 enforcement thereof.

849

850

851

24.

25.

Omitted.

CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

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

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

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

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Contract No. 14-06-200-1357A-LTR1

854 of direct cost incurred by the United States for work requested by the Contractor associated with

855 this Contract plus indirect costs in accordance with applicable Bureau ofReclamation policies

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

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

858 contract administration.

859 WATER CONSERVATION

860 26. (a) Priorto the delivery of water provided from or conveyed through

861 Federally constructed or Federally financed facilities pursuant to this Contract, the Contractor

862 shall be implementing an effective water conservation and efficiency program based on the

863 Contractor's water conservation plan that has been determined by the Contracting Officer to meet

864 the conservation and efficiency criteria for evaluating water conservation plans established under

865 Federal law. The water conservation and efficiency program shall contain definite water

866 conservation objectives, appropriate economically feasible water conservation measures, and

867 time schedules for meeting those objectives. Continued Project Water delivery pursuant to this

868 Contract shall be contingent upon the Contractor's continued implementation of such water

869 conservation program. In the event the Contractor's water conservation plan or any revised water

870 conservation plan completed pursuant to subdivision (d) of Article 26 ofthis Contract have not

871 yet been determined by the Contracting Officer to meet such criteria, due to circumstances which

872 the Contracting Officer determines are beyond the control ofthe Contractor, water deliveries

873 shall be made under this Contract so long as the Contractor diligently works with the Contracting

874 Officer to obtain such determination at the earliest practicable date, and thereafter the Contractor

875 immediately begins implementing its water conservation and efficiency program in accordance

876 with the time schedules therein.

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

878 Article 3 ofthis Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall

879 implement the Best Management Practices identified by the time frames issued by the California

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Contract No. 14-06-200-1357A-LTR1

880 Urban Water Conservation Council for such M&I Water unless any such practice is determined

881 by the Contracting Officer to be inappropriate for the Contractor.

882 (c) The Contractor shall submit to the Contracting Officer a report on the

883 status ofits implementation ofthe water conservation plan on the reporting dates specified in the

884 then existing conservation and efficiency criteria established under Federal law.

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

886 plan to reflect the then-current conservation and efficiency criteria for evaluating water

887 conservation plans established under Federal law and submit such revised water management

888 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then

889 determine ifthe water conservation plan meets Bureau ofReclamation's then-current

890 conservation and efficiency criteria for evaluating water conservation plans established under

891 Federal law.

892 (e) Ifthe Contractor is engaged in direct ground-water recharge, such activity

893 shall be described in the Contractor's water conservation plan.

894 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

895 27. Except as specifically provided in Article 17 ofthis Contract, the provisions of

896 this Contract shall not be applicable to or affect non-Project water or water rights now owned or

·897 hereafter acquired by the Contractor or any user ofsuch water within the Contractor's Service

898 Area. Any such water shall not be considered Project Water under this Contract. In addition,

899 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or

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

901 contract pursuant to Federal Reclamation law.

902 28. Omitted.

903 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

904 29. The expenditure or advance of any money or the performance of any obligation of

905 the United States under this Contract shall be contingent upon appropriation or allotment of

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Contract No. 14-06-200-1357A-LTR1

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

907 obligations under this Contract. No liability shall accrue to the United States in case funds are

908 not appropriated or allotted.

909 BOOKS, RECORDS, AND REPORTS

910 30. (a) The Contractor shall establish and maintain accounts and other books and

911 records pertaining to administration ofthe terms and conditions ofthis Contract, including: the

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

913 agreements; the water users' land-us~ (crop census), land ownership, land-leasing and water use

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

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

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

917 Contract shall have the right during office hours to examine and make copies ofthe other party's

918 books and records relating to matters covered by this Contract.

919 (b) Notwithstanding the provisions ofsubdivision (a) ofthis Article, no

920 books, records, or other information shall be requested from the Contractor by the Contracting

921 Officer unless such books, records, or information are reasonably related to the administration or

922 performance ofthis Contract. Any such request shall allow the Contractor a reasonable period of

923 time within which to provide the requested books, records, or information.

924 (c) Omitted.

925 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

926 31. (a) The provisions ofthis Contract shall apply to and bind the successors and

927 assigns of the parties hereto, but no assignment or transfer ofthis Contract or any right or interest

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

929 (b) The assignment of any right or interest in this Contract by either party

930 shall not interfere with the rights or obligations of the other party to this Contract absent the

931 written concurrence ofsaid other party.

932 (c) The Contracting Officer shall not unreasonably condition or withhold his

933 approval of any proposed assignment.

934 SEVERABILITY

935 32. In the event that a person or entity who is neither (i) a party to a Project contract,

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

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Contract No. 14-06-200-1357A-LTR1

937 (iii) an association or other form of organization whose primary function is to represent parties to

938 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or

939 enforceability of a provision included in this Contract and said person, entity, association, or

940 organization obtains a final court decision holding that such provision is legally invalid or

941 unenforceable and the Contractor has not intervened in that lawsuit in support ofthe plaintiff(s),

942 the parties to this Contract shall use their best efforts to (i) within 30 days ofthe date ofsuch

943 final court decision identify by mutual agreement the provisions in this Contract which must be

944 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s).

945 The time periods specified above may be extended by mutual agreement ofthe parties. Pending

946 the completion ofthe actions designated above, to the extent it can do so without violating any

947 applicable provisions oflaw, the United States shall continue to make the quantities ofProject

948 Water specified in this Contract available to the Contractor pursuant to the provisions ofthis

949 Contract which were not found to be legally invalid or unenforceable in the final court decision.

950 RESOLUTION OF DISPUTES

951 33. Should any dispute arise concerning any provisions ofthis Contract, or the

952 parties' rights and obligations thereunder, the parties shall meet and confer in an attempt to

953 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting

954 Officer referring any matter to Department ofJustice, the party shall provide to the other party

955 30 days' written notice ofthe intent to take such action; Provided, That such notice shall not be

956 required where a delay in commencing an action would prejudice the interests ofthe party that

957 intends to file suit. During the 3D-day notice period, the Contractor and the Contracting Officer

958 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided,

959 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the

960 United States may have.

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Contract No. 14-06-200-1357A-LTR1

961 OFFICIALS NOT TO BENEFIT

962 34. No Member of or Delegate to Congress, Resident Commissioner, or official ofthe

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

964 manner as other water users or landowners.

965 CHANGES IN CONTRACTOR'S SERVICE AREA

966 35. (a) While this Contract is in effect, no change may be made in the

967 Contractor's Service Area by inclusion or exclusion oflands, dissolution, consolidation, merger,

968 or otherwise, except upon the Contracting Officer's written consent.

969 (b) Within 30 days of receipt of a request for such a change, the Contracting

970 Officer will notify the Contractor of any additional infonnation required by the Contracting

971 Officer for processing said request, and both parties will meet to establish a mutually agreeable

972 schedule for timely completion ofthe process. Such process will analyze whether the proposed

973 change is likely to: (i) result in the use of Project Water contrary to the tenns ofthis Contract;

974 (ii) impair the ability ofthe Contractor to pay for Project Water furnished under this Contract or

975 to pay for any Federally-constructed facilities for which the Contractor is responsible; and

976 (iii) have an impact on any Project Water rights applications, pennits, or licenses. In addition,

977 the Contracting Officer shall comply with the NEPA and ESA. The Contractor will be

978 responsible for all costs incurred by the Contracting Officer in this process, and such costs will

979 be paid in accordance with Article 25 ofthis Contract.

980 FEDERAL LAWS

981 36. By entering into this Contract, the Contractor does not waive its rights to contest

982 the validity or application in connection with the perfonnance ofthe tenns and conditions ofthis

983 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with

984 the tenns and conditions of this Contract unless and until relief from application ofsuch Federal

985 law or regulation to the implementing provision ofthe Contract is granted by a court of

986 competent jurisdiction.

37
Contract No. 14-06-200-1357A-LTRl

987 NOTICES

988 37. Any notice, demand, or request authorized or required by this Contract shall be

989 deemed to have been given, on behalf ofthe Contractor, when mailed, postage prepaid, or

990 delivered to the Area Manager, Bureau ofReclamation, 7794 Folsom Dam Road, Folsom,

991 California 95630-1799, and on behalf ofthe United States, when mailed, postage prepaid, or

992 delivered to the Board of Directors ofthe El Dorado Irrigation District, 2890 Mosquito Road,

993 Placerville, California 95667. The designation ofthe addressee or the address may be changed

994 by notice given in the same manner as provided in this Article for other notices.

995 CONFIRMATION OF CONTRACT

996 38. The Contractor, after the execution ofthis Contract, shall furnish to the

997 Contracting Officer evidence that pursuant to the laws ofthe State of California, the Contractor

998 is a legally constituted entity and the Contract is lawful, valid, and binding on the'Contractor.

999 This Contract shall not be binding on the United States until such evidence has been provided to

1000 the Contracting Officer's satisfaction.

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Contract No. 14-06-200-1357A-LTRI

1001 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of

1002 the day and year first above written.

1003 THE UNITED STATES OF AMERICA

1004

1005

1006

1007

1008

1009

1010 Attest:

APPROVE.O AS TO LEG~\.'~·~, I

FORM ANO SUFFIC~' :,.j

[ ~/LlIt~, /j}1/f? ."=

OfFICE OF REGIONAL SOLlCITQROR

OEPP,RTMENT OF THE INTER\ egional Director, Mid-Pacific Region

Bureau ofReclamation

EL DORADO IRRIGAnON DISTRICT

By: ~4/~~6t~d¢~~~z-~. __ General Manager

El Dorado Irrigation District

1012

1011 By:

Secretary

d.~ 1013 El Dorado Irrigation District

39
28

·12

13

i:J

20

29

21

/..

..

Dale: Odober 27. 2004. Revised 6113105. 2/3106,• c::========>,, -=========~ ....a

c ., _ ·\A ',.;.-4..\--...I \ _ 1.-..1 c,. ....

I222l Contractor's CVP Service Area

District Boundary

EI Dorado I.D. - Folsom Service Area

Contract No. 14-06-200-1357A-LTR-1

Exhibit A

r::;.";;~"'"

~.

353-202-1
Contract No. 14-06-200-1357A-LTRI

EXHIBIT B

2006 Water Rates and Charges

EL DORADO IRRIGATION DISTRICT

2006 Rates Per Acre-Foot

M&I

Cost-Of-Service (COS) Rate $15.00

(1 5t Tier - S 80% ofContract Total)

2nd Tier $15.00

[>80% <90% of Contract Total]

(M&I Full Cost Rate + COS Rate/2)

3rd Tier $15.00

[>90% of Contract Total]

(M&I Full Cost Rate)

M&I Full Cost Rate! $15.00

Surcharges Under P.L. 102-575 to Restoration Fundl $16.49

Restoration Payments [3407(d)(2)(A)]

Note: Additional detail of rate components is available on the Internet at

www.mp.llsbr.gov/cvpwaterrates/

I Interest rates used in the calculation of the M&I Full Cost Rate shall comply with the Interest

Rate methodology contained in Section 202(3)(B) and (C) of the Reclamation Reform Act of

October 12, 1982 (96 Stat. 1263), as amended.

2 The surcharges are payments in addition to the water rates and are determined pursuant to Title

XXXIV of P.L. 102-575. Restoration Fund surcharged under P.L. 102-575 are on a fiscal year

basis (l % 1-9/30).