M&I Only 

R. O. Final Draft 10/25-2004 

Contract No. 

14-06-200-3474A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

THE CITY OF ROSEVILLE

PROVIDING FOR PROJECT WATER SERVICE

FROM THE AMERICAN RIVER DIVISION

Table of Contents

Article No. Title Page No.

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

Explanatory Recitals............................................................................................ 1-4 

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

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

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

4 Time for Delivery of Water ...................................................................................13 

5 Point of Diversion and Responsibility for Distribution of Water.................... 14-15 

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 ......................................................... 22-23 

10 Application of Payments and Adjustments...................................................... 23-24 

11 Temporary Reductions--Return Flows ............................................................ 24-25 

12 Constraints on the Availability of Water ...............................................................25 

13 Omitted ..................................................................................................................26 

14 Rules and Regulations ...........................................................................................26 

15 Water and Air Pollution Control............................................................................26 

16 Quality of Water .............................................................................................. 26-27 

17 Water Acquired by the Contractor Other Than From the United States ......... 27-28 
Contract No. 14-06-200-3474A-LTR1 

Table of Contents - continued

Article No. Title Page No.

18 Opinions and Determinations .......................................................................... 28-29 

19 Coordination and Cooperation......................................................................... 29-30 

20 Charges for Delinquent Payments ................................................................... 30-31 

21 Equal Opportunity............................................................................................ 31-32 

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

23 Compliance With Civil Rights Laws and Regulations .................................... 32-33 

24 Omitted ..................................................................................................................33 

25 Contractor to Pay Certain Miscellaneous Costs ....................................................33 

26 Water Conservation ......................................................................................... 33-35 

27 Existing or Acquired Water or Water Rights.........................................................35 

28 Omitted ..................................................................................................................35 

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

30 Books, Records, and Reports........................................................................... 35-36 

31 Assignment Limited--Successors and Assigns Obligated .....................................36 

32 Severability ...................................................................................................... 36-37 

33 Resolution of Disputes...........................................................................................37 

34 Officials Not to Benefit..........................................................................................37 

35 Changes in Contractor's Service Area ............................................................. 37-38 

-36 Federal Laws..........................................................................................................38 

37 Notices ...................................................................................................................38

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

Signature Page .......................................................................................................39 

Exhibit A - Map of Contractor’s Service Area 

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

Contract No. 

14-06-200-3474A-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

6 AND

7 THE CITY OF ROSEVILLE

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM THE AMERICAN RIVER DIVISION

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

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

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

13 supplemented, August 4, 1939 (53 Stat. 1187), as amended and supplemented, June 21, 1963 (77 

14 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 (100 Stat. 3050), as amended 

15 November 5, 1990 (104 Stat. 2074) and Title XXXIV of the Act of October 30, 1992 (106 Stat. 

16 4706), all collectively hereinafter referred to as Federal Reclamation law, between THE UNITED 

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

18 ROSEVILLE, hereinafter referred to as the Contractor, a public agency of the State of California, 

19 duly organized, existing, and acting pursuant to the laws thereof,; 

20 WITNESSETH, That: 

21 EXPLANATORY RECITALS

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

23 Project (Project), California, for diversion, storage, carriage, distribution and beneficial use, for flood 
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24 control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection and 

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

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

27 San Joaquin River and their tributaries; and 

 [2nd 28 ] WHEREAS, the United States constructed Folsom Dam and Reservoir, hereinafter 

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

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

 [3rd 31 ] WHEREAS, the rights to Project Water were acquired by the United States pursuant 

32 to California law for operation of the Project; and 

 [4th 33 ] WHEREAS, the Contractor and the United States entered into Contract 

34 No. 14-06-200-3474A, dated September 9, 1967, hereinafter referred to as the Existing Contract, 

35 which established terms for the delivery to the Contractor of Project Water from the American River 

36 Division from January 1, 1971, through December 31, 2011; and 

 [5th 37 ] Omitted; and 

38 [5.1] Omitted; and 

 [6th 39 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

41 programmatic environmental impact statement (PEIS) pursuant to the National Environmental Policy 

42 Act (NEPA) analyzing the direct and indirect impacts and benefits of implementing the CVPIA and 

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

44 [6.1] WHEREAS, the Contracting Officer and the Contractor are entering into this Contract 

45 pursuant to Subsection 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA); and 

 [7th 46 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

47 environmental review necessary to provide for long-term renewal of the Existing Contract; and 
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 [8th 48 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 51 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

52 its obligations under the Existing Contract; and 

 [10th 53 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

54 Officer that the Contractor has utilized the Project Water supplies available to it for reasonable and 

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

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

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

 [11th 58 ] WHEREAS, water obtained from the Project has been relied upon by urban areas 

59 within California for more than 50 years, and is considered by the Contractor as an essential portion 

60 of its water supply; and 

 [12th 61 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

62 depend upon the continued availability of water, including water service from the Project; and 

63 [12.1] WHEREAS, in the CALFED Programmatic Record of Decision, dated August 28, 

64 2000, the United States and the State of California adopted a general target of continuously 

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

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

67 concentrations at Clifton Court Forebay and other southern and central Delta drinking water intakes 

68 of 50 ug/L bromide and 3.0 mg/L total organic carbon, or (b) an equivalent level of public health 

69 protection using a cost-effective combination of alternative source waters, source control and 

70 treatment technologies;” and 

[13th 71 ] WHEREAS, the Secretary intends through coordination, cooperation, and partnerships 

72 to pursue measures to improve water supply, water quality, and reliability of the Project for all 
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73 Project purposes; and 

74 [13.1] WHEREAS, the Contractor and the water users in its Service Area have improved and 

75 will continue to improve water use efficiency through water conservation, water reclamation, and 

76 other Best Management Practices; however, implementing these measures have reduced and continue 

77 to reduce the ability of the Contractor and the water users in its Service Area to withstand a 

78 Condition of Shortage; and 

[14th 79 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

84 relative to the Project; and 

[15th 85 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

86 relationship in order to achieve their mutual goals; and 

87 [15.1] WHEREAS, the Contractor is a signatory to the Water Forum Agreement, dated 

88 April 14, 2000, which has the co-equal objectives to (1) provide a reliable and safe water supply for 

89 the Sacramento region’s economic health and planned development through the year 2030, and (2) 

90 preserve the fishery, wildlife, recreational and aesthetic values of the lower American River; and 

91 [15.2] WHEREAS, the Contracting Officer is in support of the co-equal objectives of the 

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

93 that they could take to implement the objectives of the Water Forum Agreement, which, if agreed to, 

94 would be the subject of a separate agreement between them; and 

[16th 95 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

97 NOW, THEREFORE, in consideration of the mutual and dependent covenants herein 
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98 contained, it is hereby mutually agreed by the parties hereto as follows: 

99 DEFINITIONS

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

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

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

103 dates inclusive; 

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

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

106 by the Contracting Officer pursuant to this Contract; 

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

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

109 Total; 

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

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

112 regulation; 

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

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

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

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

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

118 amendment of this Contract; 

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

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

121 (h-i) Omitted; 

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

Deleted: ¶
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123 Officer that shall amortize the expenditures for construction properly allocable to the Project 

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

125 funded, less payments, over such periods as may be required under Federal Reclamation law or 

126 applicable contract provisions. Interest will accrue on both the construction expenditures and funded 

127 O&M deficits from October 12, 1982, on costs outstanding at that date, or from the date incurred in 

128 the case of costs arising subsequent to October 12, 1982, and shall be calculated in accordance with 

129 subsections 202(3)(B) and (3)(C) of the RRA. The Full-Cost Rate includes actual operation, 

130 maintenance, and replacement costs consistent with Section 426.2 of the Rules and Regulations for 

131 the RRA; 

132 (k-l) Omitted; 

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

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

135 thereto, and watering of livestock; 

136 (n) Omitted; 

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

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

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

140 kept for personal enjoyment or water delivered to land holdings operated in units of less than five 

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

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

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

144 delivery of M&I Water; 

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

146 care, control, operation, repair, replacement (other than capital replacement), and maintenance of 

147 Project facilities; 
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148 (r) Omitted; 

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

150 and managed by the Department of the Interior, Bureau of Reclamation; 

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

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

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 accordance 

155 with the terms and conditions of water 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, as 

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

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

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

161 contract(s); 

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

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

164 through any agency of the Department of the Interior; 

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

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

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

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

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

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

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

Formatted: Suppress line numbers
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172 (bb) “Water Scheduled” shall mean Project Water made available to the Contractor 

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

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

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

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

177 TERM OF CONTRACT 

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

179 and supersedes the Existing Contract. In the event the Contractor wishes to renew this Contract 

180 beyond February 28, 2045, the Contractor shall submit a request for renewal in writing to the 

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

182 (b) Omitted. 

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

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

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

186 Contractor shall be afforded the opportunity to comment to the Contracting Officer on the proposed 

187 adoption and application of any revised policy applicable to the delivery of M&I Water that would 

188 limit the term of any subsequent renewal contract with the Contractor for the furnishing of M&I 

189 Water to less than 40 years. 

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

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

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

193 1939 can be accomplished. The Contracting Officer anticipates that during the term of this Contract, 

194 all authorized Project construction expected to occur will have occurred, and on that basis the 
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195 Contracting Officer upon such completion to allocate all costs that are properly assignable to the 

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

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

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

199 Reclamation Project Act of 1939, subject to applicable Federal law and under stated terms and 

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

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

202 the amount credited to return by the Contractor as provided for under Reclamation law, the remaining 

203 amount of construction costs assignable for ultimate return by the Contractor can probably be repaid 

204 to the United States within the term of a contract under subsection (c)(1) of Section 9. If the 

205 remaining amount of costs that are properly assignable to the Contractor cannot be determined during 

206 the term of this Contract, the Contracting Officer shall notify the Contractor, and provide the 

207 reason(s) why such a determination could not be made. Further, the Contracting Officer shall make 

208 such a determination as soon thereafter as possible so as to permit, upon request of the Contractor 

209 and satisfaction of the conditions set out above, conversion to a contract under subsection (c)(1) of 

210 Section 9. In the event such determination of costs has not been made at a time which allows 

211 conversion of this Contract during the term of this Contract or the Contractor has not requested 

212 conversion of this Contract within such term, the parties shall incorporate in any subsequent renewal 

213 contract as described in subdivision (b) of this Article, a provision that carries firth in substantially 

214 identical terms the provisions of this subdivision. 

215 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

218 Contract, the Contracting Officer shall make available for delivery to the Contractor 32,000 acre-feet 

219 of Project Water for M&I purposes. Water Delivered to the Contractor in accordance with this 
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220 subdivision shall be scheduled and paid for pursuant to the provisions of Articles 4 and 7 of this 

221 Contract. 

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

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

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

225 actually receiving the amount of Project Water set out in subdivision (a) of this Article in any given 

226 Year is uncertain. The Contracting Officer’s modeling referenced in the PEIS projected that the 

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

228 the most recent five years, the Recent Historic Average of Water Made Available to the Contractor 

229 was 31,040 acre-feet. Nothing in subdivision (b) of this Article shall affect the rights and obligations 

230 of the parties under any provision of this Contract. 

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

232 legal requirements. 

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

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

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

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

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

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

239 the Contractor’s water conservation plan submitted pursuant to Article 26 of this Contract; Provided, 

240 further, That such water conservation plan demonstrates sufficient lawful uses exist in the 

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

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

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

244 and other similar programs utilizing Project Water or other water furnished pursuant to this Contract 
Contract No. 14-06-200-3474A-LTR1 

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

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

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

248 regulations, policies, or guidelines. 

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

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

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

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

253 excess of 30 years of diversions for M&I purposes of the quantities of water provided in subdivision 

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

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

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

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

258 environmental documentation referred to in this Article. 

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

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

261 available to the Project, can be made available to the Contractor in addition to the Contract Total 

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

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

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

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

266 Contracting Officer will announce the availability of such water and shall so notify the Contractor as 

267 soon as practical. The Contracting Officer will thereafter meet with the Contractor and other Project 

268 Contractors capable of taking such water to determine the most equitable and efficient allocation of 

269 such water. If the Contractor requests the delivery of any quantity of such water, the Contracting 
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270 Officer shall make such water available to the Contractor in accordance with applicable statutes, 

271 regulations, guidelines, and policies. 

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

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

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

275 quantity of Project Water which may be made available by the United States to the Contractor during 

276 the subsequent Year referred to as “preuse.” The Contracting Officer’s written approval may permit 

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

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

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

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

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

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

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

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

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

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

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

288 approval. 

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

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

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

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

293 That the Contracting Officer retains the right to object to the substance of the Contractor’s position in 

294 such a proceeding; Provided further, That in such proceedings the Contracting Officer shall recognize 
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295 the Contractor has a legal right under the terms of this Contract to use Project Water. 

296 TIME FOR DELIVERY OF WATER

297 4 (a) On or about February 20 of each Calendar Year, the Contracting Officer shall 

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

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

300 Average and will be updated monthly, and more frequently if necessary, based on then-current 

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

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

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

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

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

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

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

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

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

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

311 for the Year commencing on such March 1. 

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

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

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

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

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

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

318 revision(s), satisfactory to the Contracting Officer, thereto submitted within a reasonable time prior 
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319 to the date(s) on which the requested change(s) is/are to be implemented. 

320 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

322 Contract shall be delivered to the Contractor at the outlet from the 84-inch pipeline leading from 

323 Folsom pumping plant to the Hinkle Wye and any additional point or points of delivery either on 

324 Project facilities or another location or locations mutually agreed to in writing by the Contracting 

325 Officer and the Contractor. 

326 (b) Omitted. 

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

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

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

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

331 States, or other appropriate entity as designated by the Contracting Officer (hereafter “other 

332 appropriate entity”) at the point or points of delivery established pursuant to subdivision (a) of this 

333 Article. Upon the request of either party to this Contract, the Contracting Officer shall investigate, or 

334 cause to be investigated, the accuracy of such measurements and shall take any necessary steps to 

335 adjust any errors appearing therein. For any period of time when accurate measurements have not 

336 been made, the Contracting Officer shall consult with the Contractor prior to making a final 

337 determination of the quantity delivered for that period of time. 

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

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

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

341 indemnify the United States, its officers, employees, agents, and assigns on account of damage or 

342 claim of damage of any nature whatsoever for which there is legal responsibility, including property 

343 damage, personal injury, or death arising out of or connected with the control, carriage, handling, use, 
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344 disposal, or distribution of such Water Delivered beyond such delivery points, except for any damage 

345 or claim arising out of: (i) acts or omissions of the Contracting Officer or any of its officers, 

346 employees, agents, or assigns with the intent of creating the situation resulting in any damage or 

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

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

349 assigns; or (iv) damage or claims resulting from a malfunction of facilities owned and/or operated by 

350 the United States. 

351 MEASUREMENT OF WATER WITHIN THE SERVICE AREA

352 6. (a) The Contractor shall ensure that, unless the Contractor establishes an 

353 alternative measurement program satisfactory to the Contracting Officer, all surface water delivered 

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

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

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

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

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

359 water measuring methods to ensure its proper management of the water, to bill water users for water 

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

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

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

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

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

365 described in subdivision (c) of Article 26. 

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

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

368 the measurement devices or water measuring methods being used or to be used to implement 
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369 subdivision (a) of this Article and identifying the M&I service connections or alternative 

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

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

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

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

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

375 identified in the Contractor’s report and if the Contracting Officer does not respond in such time, they 

376 shall be deemed adequate. If the Contracting Officer notifies the Contractor that the measuring 

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

378 Officer‘s response, commence to negotiate in good faith how, and the earliest practicable date by 

379 which, the Contractor shall modify said measuring devices and/or measuring methods as required by 

380 the Contracting Officer to ensure compliance with subdivision (a) of this Article. 

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

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

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

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

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

386 Contractor’s Service Area during the previous Year. 

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

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

389 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

393 shall be amended, modified, or superseded only through a public notice and comment procedure; (ii) 
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394 applicable Federal Reclamation law and associated rules and regulations, or policies; and (iii) other 

395 applicable provisions of this Contract. Payments shall be made by cash transaction, electronic funds 

396 transfer, or any other mechanism as may be agreed to in writing by the Contractor and the 

397 Contracting Officer. The Rates, Charges, and Tiered Pricing Component applicable to the Contractor 

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

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

400 Tiered Pricing Component as follows: 

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

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

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

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

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

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

407 1 of the current Calendar Year, through September 30, of the following Calendar Year, and such 

408 notification shall revise Exhibit “B.” 

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

410 make available to the Contractor an estimate of the Rates and Tiered Pricing Component for Project 

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

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

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

414 shall provide the Contractor with the final Rates and Tiered Pricing Component to be in effect for the 

415 upcoming Year, and such notification shall revise Exhibit “B.” 

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

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

418 shall make an advance payment to the United States equal to the total amount payable pursuant to the 
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419 applicable Rate(s) set under subdivision (a) of this Article, for the Project Water scheduled to be 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

435 but no later than April 30th of the following Year, or 60 days after the delivery of Project Water 

436 carried over under subdivision (g) of Article 3 of this Contract if such water is not delivered by the 

437 last day of February. 

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

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

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

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

442 shown in the water delivery report for the subject month prepared by the Contracting Officer. The 

443 water delivery report shall be deemed a bill for the payment of Charges and the applicable Tiered 
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444 Pricing Component for Water Delivered. Adjustment for overpayment or underpayment of Charges 

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

446 month. Any amount to be paid for past due payment of Charges and the Tiered Pricing Component 

447 shall be computed pursuant to Article 20 of this Contract. 

448 (e) The Contractor shall pay for any Water Delivered under subdivision (a), (f), or 

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

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

451 Provided, That the Rate for Water Delivered under subdivision (a) of Article 3 of this Contract shall 

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

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

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

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

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

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

458 regulations, and the then current Project ratesetting policy for M&I Water. 

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

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

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

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

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

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

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

466 reports, or information. 

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

468 Contract is their mutual goal. Recognizing that experience has demonstrated that mechanisms, 
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469 policies, and procedures used for establishing Rates, Charges, and Tiered Pricing Components, 

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

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

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

473 effect without amending this Contract. 

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

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

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

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

478 excess of 80 percent of the Contract Total, but less than or equal to 90 percent of the Contract Total, 

479 shall equal one-half of the difference between the Rate established under subdivision (a) of this 

480 Article and the M&I Full Cost Water Rate. The Tiered Pricing Component for the amount of Water 

481 Delivered which exceeds 90 percent of the Contract Total shall equal the difference between (i) the 

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

483 (2) Omitted. 

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

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

486 transfers to others but shall not include Project Water transferred to the Contractor, nor shall it 

487 include the additional water provided to the Contractor under the provisions of subdivision (f) of 

488 Article 3 of this Contract. 

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

490 will be established to recover only reimbursable O&M (including any deficits) and capital costs of 

491 the Project, as those terms are used in the then-current Project ratesetting policies, and interest, where 

492 appropriate, except in instances where a minimum Rate is applicable in accordance with the relevant 
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493 Project ratesetting policy. Changes of significance in practices which implement the Contracting 

494 Officer’s ratesetting policies will not be implemented until the Contracting Officer has provided the 

495 Contractor an opportunity to discuss the nature, need, and impact of the proposed change. 

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

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

498 upward or downward to reflect the changed costs, if any, incurred by the Contracting Officer in the 

499 delivery of the transferred Project Water to the transferee’s point of delivery in accordance with the 

500 then-applicable Project ratesetting policy. 

501 (m) Omitted. 

502 (n) With respect to the Rates for M&I Water, the Contractor asserts that it is not 

503 legally obligated to pay any Project deficits claimed by the United States to have accrued as of the 

504 date of this Contract or deficit related interest charges thereon. By entering into this Contract, the 

505 Contractor does not waive any legal rights or remedies that it may have with respect to such disputed 

506 issues. Notwithstanding the execution of this Contract, and payments made hereunder, the 

507 Contractor may challenge in the appropriate administrative or judicial forums: (1) the existence, 

508 computation, or imposition of any deficit charges accruing during the term of the Existing Contract 

509 and any preceding interim renewal contracts, if applicable; (2) interest accruing on any such deficits; 

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

511 States of payments made by the Contractor under its Existing Contract and any preceding interim 

512 renewal contracts, if applicable; and (5) the application of such payments in the Rates. The 

513 Contracting Officer agrees that the Contractor shall be entitled to the benefit of any administrative or 

514 judicial ruling in favor of any other Central Valley Project M&I contractor on any of these issues, 

515 and credits for payments heretofore made, provided that, the basis for such ruling is applicable to the 

516 Contractor. 
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517 8. Omitted. 

518 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

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

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

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

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

529 (b) In order to facilitate efficient water management, among Project Contractors 

530 located within the same geographical area, by means of water transfers and to allow the Contractor to 

531 participate in an accelerated water transfer program during the term of this Contract, the Contracting 

532 Officer shall prepare, as appropriate, all necessary environmental documentation including, but not 

533 limited to, documents prepared pursuant to NEPA and ESA analyzing annual transfers within such 

534 geographical areas and the Contracting Officer shall determine whether such transfers comply with 

535 applicable law. Following the completion of the environmental documentation, such transfers 

536 addressed in such documentation shall be conducted with advance notice to the Contracting Officer, 

537 but shall not require prior written approval by the Contracting Officer. Such environmental 

538 documentation and the Contracting Officer’s compliance determination shall be reviewed every five 

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

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

541 quantity of Project Water historically transferred within the same geographical area. 
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542 (c) For a water transfer to qualify under subdivision (b) of this Article, such water 

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

544 M&I use, groundwater recharge, water banking or fish and wildlife resources, not lead to land 

545 conversion; and be delivered to established cropland, wildlife refuges, groundwater basins or M&I 

546 use; (ii) occur within a single Year; (iii) occur between a willing seller and a willing buyer; (iv) 

547 convey water through existing Project facilities with no new construction or modifications to Project 

548 facilities and be between existing Project Contractors and/or the Contractor and the United States, 

549 Department of the Interior; and (v) comply with all applicable Federal, State, and local or tribal laws 

550 and requirements imposed for protection of the environment and Indian Trust Assets, as defined 

551 under Federal law. 

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

553 CVPIA applies to the Contractor as a transferor or transferee of Project Water, the Contracting 

554 Officer acknowledges that the Contractor is within a county, watershed or other area of origin, as 

555 those terms are utilized under California law, of water that constitutes the natural flow of the 

556 American River and its tributaries above the confluence of the American and Sacramento Rivers. 

557 APPLICATION OF PAYMENTS AND ADJUSTMENTS

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

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

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

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

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

563 the Contractor. With respect to overpayment, such refund or adjustment shall constitute the sole 

564 remedy of the Contractor or anyone having or claiming to have the right to the use of any of the 

565 Project Water supply provided for herein. All credits and refunds of overpayments shall be made 
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566 within 30 days of the Contracting Officer obtaining direction as to how to credit or refund such 

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

568 in which the overpayment was made. 

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

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

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

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

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

574 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

579 Contract. 

580 (b) The Contracting Officer may temporarily discontinue or reduce the quantity of 

581 Water Delivered to the Contractor as herein provided for the purposes of investigation, inspection, 

582 maintenance, repair, or replacement of any of the Project facilities or any part thereof necessary for 

583 the delivery of Project Water to the Contractor, but so far as feasible the Contracting Officer will give 

584 the Contractor due notice in advance of such temporary discontinuance or reduction, except in case 

585 of emergency, in which case no notice need be given; Provided, That the United States shall use its 

586 best efforts to avoid any discontinuance or reduction in such service. Upon resumption of service 

587 after such reduction or discontinuance, and if requested by the Contractor, the United States will, if 

588 possible, deliver the quantity of Project Water which would have been delivered hereunder in the 

589 absence of such discontinuance or reduction. 

590 (c) The United States reserves the right to all seepage and return flow water 
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591 derived from Water Delivered to the Contractor hereunder which escapes or is discharged beyond the 

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

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

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

595 under the Contractor. 

596 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

601 determination as soon as practicable. 

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

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

604 taken by the Contracting Officer to meet legal obligations then, except as provided in subdivision (a) 

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

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

607 (c) Omitted. 

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

609 with the then-existing Project M&I Water Shortage Policy. Such policy shall be amended, modified, 

610 or superseded only through a public notice and comment procedure. 

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

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

613 (i) the sufficiency of the manner in which any Project M&I Water Shortage Policy adopted after the 

614 effective date of this Contract was promulgated; (ii) the substance of such a policy; or (iii) the 

615 applicability of such a policy. By agreeing to the foregoing, the Contracting Officer does not waive 
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616 any legal defenses or remedies that it may then have to assert in such a proceeding. 

617 13. Omitted. 

618 RULES AND REGULATIONS

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

620 to this Contract is subject to the applicable provisions of Federal Reclamation law and any applicable 

621 rules and regulations promulgated by the Secretary of the Interior under such law. 

622 WATER AND AIR POLLUTION CONTROL

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

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

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

626 QUALITY OF WATER

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

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

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

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

631 3050) or other existing Federal laws. The United States is under no obligation to construct or furnish 

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

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

634 Contractor pursuant to this Contract. 

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

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

637 level reasonably attainable as determined by the Contracting Officer. The Contractor shall be 

638 responsible for compliance with all State and Federal water quality standards applicable to surface 

639 and subsurface agricultural drainage discharges, if any, generated through the use of Federal or 

640 Contractor facilities or Project Water provided by the Contractor within the Contractor's Service 

Formatted: Indent: First line: 0"
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641 Area. 

642 (c) The Contracting Officer and the Contractor shall communicate, coordinate and 

643 cooperate with each other with respect to the operation and management of the Project by the United 

644 States in accordance with Articles 11 and 19 of this Contract. 

645 WATER ACQUIRED BY THE CONTRACTOR

646 OTHER THAN FROM THE UNITED STATES

647 17. (a) Omitted. 

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

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

650 subject to the completion of appropriate environmental documentation, with the approval of the 

651 Contracting Officer and the execution of any contract determined by the Contracting Officer to be 

652 necessary, consistent with the following provisions: 

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

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

655 States of an appropriate rate as determined by the applicable Project ratesetting policy and the Project 

656 use power policy, if such Project use power policy is applicable, each as amended, modified, or 

657 superseded from time to time. 

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

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

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

661 Project Contractors; (iii) interfere with the delivery of contractual water entitlements to any other 

662 Project Contractors; or (iv) interfere with the physical maintenance of the Project facilities; Provided, 

663 that nothing in this Article is intended to preclude the United States from passing the Contractor’s 

664 water rights water through Project storage facilities to the extent required to satisfy the Contractor’s 

665 water rights that are senior to those of the Project under the applicable provisions of California water 

666 law. Provided further, that the United States has determined that the delivery of non-Project water in 
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667 and through Project facilities pursuant to Warren Act Contract No. 02-WC-20-2217 between the 

668 United States and the Contractor, as it now exists and may be amended, extended, or renewed in the 

669 future, satisfies the requirements of this Article. 

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

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

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

673 States and their respective officers, agents, and employees, from any claim for damage to persons or 

674 property, direct or indirect, resulting from the acts of the Contractor, or its officers’, employees’, 

675 agents’ or assigns’, in (i) extracting or diverting non-Project water from any source, or (ii) diverting 

676 such non-Project water into Project facilities. 

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

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

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

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

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

682 the facilities declared to be available by the Contracting Officer for conveyance and transportation of 

683 non-Project water prior to any such remaining capacity being made available to non-Project 

684 Contractors.

685 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

Deleted: _____________
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692 provided in a timely manner. Nothing in subdivision (a) of Article 18 of this Contract is intended to 

693 or shall affect or alter the standard of judicial review applicable under federal law to any opinion or 

694 determination implementing a specific provision of federal law embodied in statute or regulation. 

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

696 to administer this Contract that are consistent with the provisions of this Contract, the laws of the 

697 United States and of the State of California, and the rules and regulations promulgated by the 

698 Secretary of the Interior. Such determinations shall be made in consultation with the Contractor to 

699 the extent reasonably practicable. 

700 COORDINATION AND COOPERATION

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

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

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

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

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

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

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

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

709 authority for all actions, opinion, and determinations to be made by the respective party. 

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

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

712 Project Contractors to develop a mutually agreeable, written Project-wide process, which may be 

713 amended as necessary separate and apart from this Contract. The goal of this process shall be to 

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

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

716 (c) In light of the factors referred to in subdivision (b) of Article 3 of this 
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717 Contract, it is the intent of the Secretary to improve water supply reliability. To carry out this intent: 

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

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

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

721 improve water supply, water quality, and reliability. 

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

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

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

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

726 California to seek improved water resource management. 

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

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

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

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

731 activities, and other issues as appropriate. 

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

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

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

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

736 the physical integrity of structures or facilities. 

737 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

741 When a payment becomes sixty days delinquent, the Contractor shall pay an administrative charge to 

742 cover additional costs of billing and processing the delinquent payment. When a payment is 

743 delinquent ninety days or more, the Contractor shall pay an additional penalty charge of six (6%) 

744 percent per year for each day the payment is delinquent beyond the due date. Further, the Contractor 
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745 shall pay any fees incurred for debt collection services associated with a delinquent payment. 

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

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

748 interest rate of one-half of one percent per month prescribed by Section 6 of the Reclamation Project 

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

750 remain fixed for the duration of the delinquent period. 

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

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

753 accrued interest, and finally to the overdue payment. 

754 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

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

764 the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

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

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

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

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

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

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

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

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

773 employment. 

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

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

776 of Labor. 

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

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

779 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting Officer 
Contract No. 14-06-200-3474A-LTR1 

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

781 regulations, and orders. 

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

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

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

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

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

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

788 by law. 

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

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

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

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

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

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

795 in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor 

796 or vendor as a result of such direction, the Contractor may request the United States to enter into such 

797 litigation to protect the interests of the United States. 

798 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

802 water users in their obligations to the Contractor. 

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

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

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

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

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

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

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

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

811 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

813 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the Age 
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814 Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights laws, as 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

830 24. Omitted. 

831 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

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

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

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

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

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

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

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

839 administration. 

840 WATER CONSERVATION

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

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

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

844 conservation plan that has been determined by the Contracting Officer to meet the conservation and 
Contract No. 14-06-200-3474A-LTR1 

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

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

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

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

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

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

851 Article 26 of this Contract have not yet been determined by the Contracting Officer to meet such 

852 criteria, due to circumstances which the Contracting Officer determines are beyond the control of the 

853 Contractor, water deliveries shall be made under this Contract so long as the Contractor diligently 

854 works with the Contracting Officer to obtain such determination at the earliest practicable date, and 

855 thereafter the Contractor immediately begins implementing its water conservation and efficiency 

856 program in accordance with the time schedules therein. 

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

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

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

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

861 Officer to be inappropriate for the Contractor. 

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

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

864 conservation and efficiency criteria established under Federal law. 

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

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

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

868 Officer for review and evaluation. The Contracting Officer will then determine if the water 
Contract No. 14-06-200-3474A-LTR1 

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

870 evaluating water conservation plans established under Federal law. 

871 (e) If the Contractor is engaged in direct groundwater recharge, such activity shall 

872 be described in the Contractor’s water conservation plan. Such water conservation plan shall 

873 demonstrate sufficient lawful uses exist in the Contractor’s Service Area so that using a long-term 

874 average, the quantity of Delivered Water is demonstrated to be reasonable for such uses and in 

875 compliance with Federal Reclamation Law. 

876 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

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

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

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

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

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

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

883 Reclamation law. 

884 28. Omitted. 

885 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

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

887 United States under this Contract shall be contingent upon appropriation or allotment of funds. 

888 Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

889 under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

890 or allotted. 

891 BOOKS, RECORDS, AND REPORTS

892 30. (a) The Contractor shall establish and maintain accounts and other books and 

893 records pertaining to administration of the terms and conditions of this Contract, including: the 

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

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

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

897 may require. Subject to applicable Federal laws and regulations, each party to this Contract shall 
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898 have the right during office hours to examine and make copies of the other party's books and records 

899 relating to matters covered by this Contract. 

900 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

901 records, or other information shall be requested from the Contractor by the Contracting Officer unless 

902 such books, records, or information are reasonably related to the administration or performance of 

903 this Contract. Any such request shall allow the Contractor a reasonable period of time within which 

904 to provide the requested books, records, or information. 

905 (c) Omitted. 

906 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

907 31. (a) The provisions of this Contract shall apply to and bind the successors and 

908 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

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

910 (b) The assignment of any right or interest in this Contract by either party shall not 

911 interfere with the rights or obligations of the other party to this Contract absent the written 

912 concurrence of said other party. 

913 (c) The Contracting Officer shall not unreasonably condition or withhold approval 

914 of any proposed assignment. 

915 SEVERABILITY

916 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

917 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

918 association or other form of organization whose primary function is to represent parties to Project 

919 contracts, brings an action in a court of competent jurisdiction challenging the legality or 

920 enforceability of a provision included in this Contract and said person, entity, association, or 

921 organization obtains a final court decision holding that such provision is legally invalid or 

922 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

923 parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

924 decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 
Contract No. 14-06-200-3474A-LTR1 

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925 within three months thereafter promptly agree on the appropriate revision(s). The time periods 

926 specified above may be extended by mutual agreement of the parties. Pending the completion of the 

927 actions designated above, to the extent it can do so without violating any applicable provisions of 

928 law, the United States shall continue to make the quantities of Project Water specified in this 

929 Contract 

930 available to the Contractor pursuant to the provisions of this Contract which were not found to be 

931 legally invalid or unenforceable in the final court decision. 

932 RESOLUTION OF DISPUTES

933 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

934 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

935 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

936 any matter to Department of Justice, the party shall provide to the other party 30 days’ written notice 

937 of the intent to take such action; Provided, That such notice shall not be required where a delay in 

938 commencing an action would prejudice the interests of the party that intends to file suit. During the 

939 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in an attempt 

940 to resolve the dispute. Except as specifically provided, nothing herein is intended to waive or abridge 

941 any right or remedy that the Contractor or the United States may have. 

942 OFFICIALS NOT TO BENEFIT

943 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

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

945 manner as other water users or landowners. 

946 CHANGES IN CONTRACTOR’S SERVICE AREA

947 35. (a) While this Contract is in effect, no change may be made in the Contractor's 

948 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

949 except upon the Contracting Officer's written consent. 

950 (b) Within 30 days of receipt of a request for such a change, the Contracting 

951 Officer will notify the Contractor of any additional information required by the Contracting Officer 

Deleted: ¶
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952 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

953 timely completion of the process. Such process will analyze whether the proposed change is likely 

954 to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability of 

955 the Contractor to pay for Project Water furnished under this Contract or to pay for any Federally956 constructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

957 Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply with 

958 NEPA and ESA. The Contractor will be responsible for all costs incurred by the Contracting Officer 

959 in this process, and such costs will be paid in accordance with Article 25 of this Contract. 

960 FEDERAL LAWS

961 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

962 validity or application in connection with the performance of the terms and conditions of this 

963 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

964 terms and conditions of this Contract unless and until relief from application of such Federal law or 

965 regulation to the implementing provision of the Contract is granted by a court of competent 

966 jurisdiction. 

967 NOTICES

968 37. Any notice, demand, or request authorized or required by this Contract shall be 

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

970 to the Area Manager, Bureau of Reclamation, 7794 Folsom Dam Road, Folsom, California 95630-

971 1799, and on behalf of the United States, when mailed, postage prepaid, or delivered to the City 

972 Council of the City of Roseville, 2005 Hilltop Circle, Roseville, California 95747. The designation 

973 of the addressee or the address may be changed by notice given in the same manner as provided in 

974 this Article for other notices. 

975 CONFIRMATION OF CONTRACT

976 38. The Contractor, after the execution of this Contract, shall furnish to the Contracting 

977 Officer evidence that pursuant to the laws of the State of California, the Contractor is a legally 

978 constituted entity and the Contract is lawful, valid, and binding on the Contractor. This Contract 

979 shall not be binding on the United States until such evidence has been provided to the Contracting 

980 Officer’s satisfaction. 
Contract No. 14-06-200-3474A-LTR1 

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981 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day 

982 and year first above written. 

983 Approved as to legal sufficiency. THE UNITED STATES OF AMERICA 

984 By: ____________________________ By: ___________________________________ 

985 Regional Director, Mid-Pacific Region 

986 Bureau of Reclamation 

987 Approved as to form. THE CITY OF ROSEVILLE 

988 By: _____________________________ By: ___________________________________ 

989 City Attorney City Manager 

990 Attest: 

991 By: _______________________________ 

992 City Clerk 

993 (H:\pub 440\LTRC\Folsom Final Draft LTRC’s\10-25-04 City of Roseville Final Draft Contract with 

994 exhibits.doc) 
Contract No. 14-06-200-3474A-LTR1 

EXHIBIT A

[Map or Description of Service Area] 
Contract No. 14-06-200-3474A-LTR1 

EXHIBIT B

2004 Water Rates and Charges

CITY OF ROSEVILLE

 2004 Rates Per Acre-Foot 

 M&I

COST-OF-SERVICE (COS) RATE $20.09 

(1st Tier - <80% of Contract Total) 

2ND TIER [>80% <90% of Contract Total] $23.96 

(M&I Full Cost Rate + COS rate/ 2) 

3RD TIER [> 90% of Contract Total] $27.82 

(M&I Full Cost Rate) 

M&I FULL COST RATE: 

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: $27.82 

SURCHARGES UNDER P.L. 102-575 TO 

RESTORATION FUND* 

Restoration Payments [3407(d)(2)(A)] $15.64 

* The surcharges are payments in addition to the water rates and are determined pursuant to Title 

XXXIV of P.L. 102-575. Restoration Fund surcharges under P.L. 102-575 are on a fiscal year basis 

(10/1 -9/30). 

Note: Additional detail of rate components is available on the Internet at http:/www.mp.usbr.gov/ 

cvpwaterrates/.