M&I Only 

R. O. Draft 10/25-2004 

Contract No. 

6-07-20-W1373-LTR1

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

SAN JUAN WATER DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM THE AMERICAN RIVER DIVISION

Table of Contents

Article No. Title Page No.

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

Explanatory Recitals............................................................................................ 2-6 

1 Definitions ........................................................................................................... 6-9 

2 Term of Contract................................................................................................ 9-10 

3 Water to be Made Available and Delivered to the Contractor ........................ 11-14 

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

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

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

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

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

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

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

11 Temporary Reductions--Return Flows ............................................................ 25-26 

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

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

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

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

16 Quality of Water .............................................................................................. 27-28 
Contract No. 6-07-20-W1373-LTR1

Table of Contents - continued

Article No. Title Page No.

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

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

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

20 Charges for Delinquent Payments .........................................................................32 

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

22 General Obligation--Benefits Conditioned Upon Payment ............................. 33-34 

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

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

25 Contractor to Pay Certain Miscellaneous Costs .............................................. 34-35 

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

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

28 Omitted ..................................................................................................................36 

29 Contingent on Appropriation or Allotment of Funds ............................................36 

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

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

32 Severability ...................................................................................................... 37-38 

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

34 Officials Not to Benefit..........................................................................................38 

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

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

37 Notices ...................................................................................................................39

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

Signature Page .......................................................................................................40 

Exhibit A - Map of Contractor’s Service Area 

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

Contract No. 

6-07-20-W1373-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 SAN JUAN WATER DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

FROM THE AMERICAN RIVER DIVISION

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

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

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

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

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

14 November 3, 1990 (104 Stat. 2087), as amended, and Title XXXIV of the Act of October 30, 1992 

15 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law, between THE 

16 UNITED STATES OF AMERICA, hereinafter referred to as the United States, and SAN JUAN 

17 WATER DISTRICT, hereinafter referred to as the Contractor, a public agency of the State of 

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

19 WITNESSETH, That:
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20 EXPLANATORY RECITALS

 [1st 21 ] WHEREAS, the United States has constructed and is operating the Central Valley 

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

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

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

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

26 San Joaquin River and their tributaries; and 

 [2nd 27 ] WHEREAS, the United States constructed Folsom Dam and Reservoir, hereinafter 

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

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

 [3rd 30 ] WHEREAS, the rights to Project Water were acquired by the United States pursuant 

31 to California law for operation of the Project; and 

32 [3.1] WHEREAS, the Contractor succeeded to the rights of the North Fork Ditch Company 

33 as set forth in Contract No. DA-04-167-eng-610, dated April 12, 1954, between the United States and 

34 the Company, which contract is separate and apart from Contract 14-06-200-152A and remains in 

35 full force and effect by its own terms; and 

36 [3.2] WHEREAS, Contract No. DA-04-167-eng-610 provides, among other things for the 

37 delivery to the Contractor by the United States of not to exceed 33,000 acre-feet of water each 

38 Calendar Year, referred to as the Contractor’s Water Rights Water; and 

 [4th 39 ] WHEREAS, the Contractor and the United States entered into Contract 

40 No. 14-06-200-152A, dated June 19, 1962, as amended, which established terms for the delivery to 

41 the Contractor of Project Water from the American River Division from June 19, 1962, through 

42 February 28, 1995; and 

43 [4.1] WHEREAS, both Contract No. 14-06-200-152A and Contract 

44 No. DA-04-167-eng-610 provide that Project Water and the Contractor’s Water Rights Water, 

45 respectively, be delivered to Hinkle Reservoir; and 
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 [5th 46 ] WHEREAS, the Contractor and the United States have pursuant to subsection 

47 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

48 interim renewal contract(s) identified as Contract No(s).14-06-200-152A-IR1, 14-06-200-152A-IR2, 

49 14-06-200-152A-IR3, 14-06-200-152A-IR4,14-06-200-152A-IR5, 14-06-200-152A-IR6, 14-06-200-

50 152A-IR7, and 14-06-200-152A-IR8, the last of which is hereinafter referred to as the Existing 

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

52 through February 28, 2006; and 

53 [5.1] Omitted; and 

54 [5.2] WHEREAS, the Contractor and the United States entered into Contract 

55 No. 6-07-20-W1373, dated April 8, 1999, pursuant to Section 206(b) of Public Law 101-514 (104 

56 Stat. 2087), which provides for the delivery to the Contractor of up to 13,000 acre feet per year of 

57 Project Water from Folsom Reservoir, hereinafter referred to as the P.L. 101-514 CVP Contract. 

58 [5.3] WHEREAS, the P.L. 101-514 CVP Contract provides that, at the time of the 

59 long-term renewal of this Contract, the P.L. 101-514 CVP Contract would be amended to conform to 

60 the provisions of this Contract. The United States and the Contractor desire to facilitate contract 

61 administration by combining the quantity of Project Water provided for in the P.L. 101-514 CVP 

62 Contract with the quantity of Project Water in the Existing Contract, so that this Contract would be 

63 the sole long-term contract for Project Water service between the United States and the Contractor 

64 superseding and replacing the P.L. 101-514 CVP Contract. 

 [6th 65 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

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

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

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

70 [6.1] Omitted; and 
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 [7th 71 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 73 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 76 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

77 its obligations under the Existing Contract and under the P.L. 101-514 CVP Contract; and 

 [10th 78 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

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

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

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

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

 [11th 83 ] WHEREAS, water obtained from the Project has been relied upon by urban areas 

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

85 of its water supply; and 

 [12th 86 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

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

88 [12.1] WHEREAS, in the CALFED Programmatic Record of Decision, dated August 28, 

89 2000, the United States and the State of California adopted a general target of continuously 

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

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

92 concentrations at Clifton Forebay and other southern and central Delta drinking water intakes of 50 

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

94 using a cost-effective combination of alternative source waters, source control and treatment 

95 technologies;” and 
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[13th 96 ] WHEREAS, the Secretary intends through coordination, cooperation, and partnerships 

97 to pursue measures to improve water supply, water quality, and reliability of the Project for all 

98 Project purposes; and 

99 [13.1] WHEREAS, the Contractor and the water users in its Service Area have improved and 

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

101 other Best Management Practices; however, implementing these measures has reduced and will 

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

103 Condition of Shortage; and 

[14th 104 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

109 relative to the Project; and 

[15th 110 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

111 relationship in order to achieve their mutual goals; and 

112 [15.1] WHEREAS, the Contractor is a signatory to the Water Forum Agreement, dated 

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

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

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

116 [15.2] WHEREAS, the Contracting Officer is in support of the co-equal objectives of the 

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

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

119 would be the subject of a separate agreement between them; and 
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120 [15.3] WHEREAS, the Contractor now requires that the water provided pursuant to the 

121 above said contracts be delivered to a higher elevation at its Sidney N. Peterson Water Treatment 

122 Plant (hereinafter referred to as the Contractor’s Water Treatment Plant); and 

123 [15.4] WHEREAS, in San Juan Suburban Water District v. United States, Civ. 

124 No. S-83-1621-LKK (E.D. Cal.), the District Court ruled that the United States was not obligated to 

125 deliver Project Water or the Contractor’s Water Rights Water to the higher elevation at the 

126 Contractor’s Water Treatment Plant; and 

[16th 127 ] WHEREAS, the United States and the Contractor are willing to enter into this 

128 Contract pursuant to Federal Reclamation law with the delivery of both Project Water and the 

129 Contractor’s Water Rights Water to the Contractor’s Water Treatment Plant on the terms and 

130 conditions set forth below; 

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

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

133 DEFINITIONS

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

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

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

137 dates inclusive; 

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

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

140 by the Contracting Officer pursuant to this Contract; 

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

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

143 Total; 

144 (d) “Contracting Officer” shall mean the Secretary of the Interior’s duly 
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145 authorized representative acting pursuant to this Contract or applicable Federal Reclamation law or 

146 regulation; 

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

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

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

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

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

152 amendment of this Contract; 

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

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

155 (h-i) Omitted; 

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

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

158 irrigation or M&I functions, as appropriate, of facilities in service including all O&M deficits funded, 

159 less payments, over such periods as may be required under Federal Reclamation law, or applicable 

160 contract provisions. Interest will accrue on both the construction expenditures and funded O&M 

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

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

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

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

165 the RRA; 

166 (k–l) Omitted; 

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

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

169 thereto, and watering of livestock; 

170 (n) Omitted; 
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171 (o) “Municipal and Industrial (M&I) Water” shall mean Project Water, other than 

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

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

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

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

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

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

178 delivery of M&I Water; 

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

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

181 Project facilities; 

182 (r) Omitted; 

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

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

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

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

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

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

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

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

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

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

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

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

195 contract(s); 

196 (x) “Secretary” shall mean the Secretary of the Interior, a duly appointed 
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197 successor, or an authorized representative acting pursuant to any authority of the Secretary and 

198 through any agency of the Department of the Interior; 

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

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

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

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

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

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

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

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

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

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

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

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

211 TERM OF CONTRACT 

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

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

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

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

216 (b) Omitted. 

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

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

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

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

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

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

Deleted: ____

Deleted: (29)

Deleted: ____

Deleted: (29)

Deleted: ____
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223 Water to less than 40 years. 

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

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

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

227 1939 can be accomplished. The Contracting Officer anticipates that during the term of this Contract, 

228 all authorized Project construction expected to occur will have occurred, and on that basis the 

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

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

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

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

233 Project Act of 1939, subject to applicable Federal law and under stated terms and conditions mutually 

234 agreeable to the Contractor and the Contracting Officer. A condition for such conversion to occur 

235 shall be a determination by the Contracting Officer that, account being taken of the amount credited 

236 to return by the Contractor as provided for under Federal Reclamation law, the remaining amount of 

237 construction costs assignable for ultimate return by the Contractor can probably be repaid to the 

238 United States within the term of a contract under said subsection (c)(1) of Section 9. If the remaining 

239 amount of costs that are properly assignable to the Contractor cannot be determined during the term 

240 of this Contract, the Contracting Officer shall notify the Contractor, and provide the reason(s) why 

241 such a determination could not be made. Further, the Contracting Officer shall make such a 

242 determination as soon thereafter as possible so as to permit, upon request of the Contractor and 

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

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

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

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

247 contract as described in subdivision (c) of this Article a provision that carries forth in substantially 
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248 identical terms the provisions of this subdivision. 

249 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

251 and licenses, Federal law, and subject to the provisions set forth in Articles 3(b), 11 and 12 of this 

252 Contract, the Contracting Officer shall make available for delivery to the Contractor 24,200 acre-feet 

253 of Project Water for M&I purposes. Water Delivered to the Contractor in accordance with this 

254 subdivision shall be scheduled and paid for pursuant to the provisions of Articles 4 and 7 of this 

255 Contract. 

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

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

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

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

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

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

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

263 was 10,864 acre-feet (based on the non-P.L. 101-514 CVP Contract total of 11,200 acre feet). 

264 Nothing in subdivision (b) of this Article shall affect the rights and obligations of the parties under 

265 any provision of this Contract. 

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

267 legal requirements. 

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

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

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

271 Water, Contractor’s Water Rights Water, or other water furnished pursuant to this Contract 

272 conducted within the Contractor’s Service Area which are consistent with applicable State law and 

273 result in use consistent with Federal Reclamation law will be allowed; Provided, That any direct 

Formatted: Indent: First line: 0"
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274 recharge program(s) is (are) described in the Contractor’s water conservation plan submitted pursuant 

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

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

277 quantity of Delivered Water is demonstrated to be reasonable for such uses and in compliance with 

278 Federal Reclamation Law. Groundwater recharge programs, groundwater banking programs, surface 

279 water storage programs, and other similar programs utilizing Project Water, Contractor’s Water 

280 Rights Water, or other water furnished pursuant to this Contract conducted outside the Contractor’s 

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

282 be based upon environmental documentation, Project Water rights, and Project operational concerns. 

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

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

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

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

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

288 excess of 40 years of diversions for M&I purposes of the quantities of water provided in subdivision 

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

290 biological assessment(s) prepared pursuant to the ESA, and any other needed environmental review. 

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

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

293 environmental documentation referred to in this Article. 

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

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

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

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

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

299 Contractor prior to making such a determination. If the Contracting Officer determines that Project 
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300 Water, or other water available to the Project, can be made available to the Contractor, the 

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

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

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

304 such water. If the Contractor requests the delivery of any quantity of such water, the Contracting 

305 Officer shall make such water available to the Contractor in accordance with applicable statutes, 

306 regulations, guidelines, and policies. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

323 approval. 

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

325 rights necessary for the Project and to provide the water available under this Contract. The 
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326 Contracting Officer shall not object to participation by the Contractor, in the capacity and to the 

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

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

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

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

331 TIME FOR DELIVERY OF WATER

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

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

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

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

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

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

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

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

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

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

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

343 showing the monthly quantities of Project Water and Contractor’s Water Rights Water to be 

344 delivered by the United States to the Contractor pursuant to this Contract for the Year commencing 

345 on such March 1. The Contracting Officer shall use all reasonable means to deliver Project Water 

346 and Contractor’s Water Rights Water according to the approved schedule for the Year commencing 

347 on such March 1. 

348 (c) The Contractor shall not schedule Project Water and/or Contractor’s Water 

349 Rights Water in excess of the quantity of such waters the Contractor intends to put to reasonable and 

350 beneficial use within the Contractor's Service Area or to sell, transfer or exchange pursuant to 

351 Article 9 of this Contract during any Year. 

Formatted: Underline

Formatted: No underline
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352 (d) Subject to the conditions set forth in subdivision (a) of Article 3 of this 

353 Contract, the United States shall deliver Project Water and Contractor’s Water Rights Water to the 

354 Contractor in accordance with the initial schedule submitted by the Contractor pursuant to 

355 subdivision (b) of this Article, or any written revision(s), satisfactory to the Contracting Officer, 

356 thereto submitted within a reasonable time prior to the date(s) on which the requested change(s) 

357 is/are to be implemented. 

358 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

360 Contract and the Contractor’s Water Rights Water shall be delivered to the Contractor at the 

361 Contractor’s Water Treatment Plant and any additional point or points of delivery either on Project 

362 facilities or another location or locations mutually agreed to in writing by the Contracting Officer and 

363 the Contractor. 

364 (b) Omitted. 

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

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

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

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

369 States, or other appropriate entity as designated by the Contracting Officer at the point or points of 

370 delivery established pursuant to subdivision (a) of this Article. Upon the request of either party to 

371 this Contract, the Contracting Officer shall investigate, or cause to be investigated, the accuracy of 

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

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

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

375 period of time. 

376 (e) The Contracting Officer shall not be responsible for the control, carriage, 
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377 handling, use, disposal, or distribution of Water Delivered and/or Contractor’s Water Rights Water 

378 Delivered to the Contractor pursuant to this Contract beyond the delivery points specified in 

379 subdivision (a) of this Article. The Contractor shall indemnify the United States, its officers, 

380 employees, agents, and assigns on account of damage or claim of damage of any nature whatsoever 

381 for which there is legal responsibility, including property damage, personal injury, or death arising 

382 out of or connected with the control, carriage, handling, use, disposal, or distribution of such Water 

383 Delivered and/or Contractor’s Water Rights Water Delivered beyond such delivery points, except for 

384 any damage or claim arising out of: (i) acts or omissions of the Contracting Officer or any of its 

385 officers, employees, agents, or assigns with the intent of creating the situation resulting in any 

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

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

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

389 by the United States. 

390 (f) Solely for the purposes of accounting required by this Contract, if the total 

391 amount of water delivered to the Contractor in a given day is 149 acre-feet or less, all such water, not 

392 to exceed 33,000 acre-feet per Calendar Year, shall be considered to be the Contractor’s Water 

393 Rights Water and shall not be subject to the Rates and Charges defined in this Contract except those 

394 charges provided for in subdivision (n) of Article 7 of this Contract. All water delivered to the 

395 Contractor in a given day in excess of 149 acre-feet shall be considered to be Delivered Water and 

396 shall be subject to the Rates and Charges provided for in Article 7 hereof. 

397 MEASUREMENT OF WATER WITHIN THE SERVICE AREA

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

399 Contracting Officer, the Contractor shall ensure that all surface water delivered for M&I purposes is 

400 measured at each M&I service connection. The water measuring devices or water measuring 

401 methods of comparable effectiveness must be acceptable to the Contracting Officer. The Contractor 

402 shall be responsible for installing, operating, and maintaining and repairing all such measuring 
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403 devices and implementing all such water measuring methods at no cost to the United States. The 

404 Contractor shall use the information obtained from such water measuring devices or water measuring 

405 methods to ensure its proper management of the water, to bill water users for water delivered by the 

406 Contractor; and, if applicable, to record water delivered for M&I purposes by customer class as 

407 defined in the Contractor’s water conservation plan provided for in Article 26 of this Contract. 

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

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

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

411 subdivision (c) of Article 26. 

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

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

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

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

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

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

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

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

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

421 methods identified in the Contractor’s report and if the Contracting Officer does not respond in such 

422 time, they shall be deemed adequate. If the Contracting Officer notifies the Contractor that the 

423 measuring devices or methods are inadequate, the parties shall within 60 days following the 

424 Contracting Officer‘s response, commence to negotiate in good faith how, and the earliest practicable 

425 date by which, the Contractor shall modify said measuring devices and/or measuring methods as 

426 required by the Contracting Officer to ensure compliance with subdivision (a) of this Article. 

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

428 Service Area after the effective date of this Contract shall also comply with the measurement 
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429 provisions described in subdivision (a) of this Article. 

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

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

432 Contractor’s Service Area during the previous Year. 

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

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

435 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

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

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

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

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

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

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

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

446 Tiered Pricing Component as follows: 

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

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

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

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

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

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

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

454 such notification shall revise Exhibit “B.” 
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455 (2) Prior to October 1 of each Calendar Year, the Contracting Officer shall 

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

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

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

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

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

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

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

463 Project Water and /or Contractor’s Water Rights Water for each Year pursuant to subdivision (b) of 

464 Article 4 of this Contract, the Contractor shall make an advance payment to the United States equal 

465 to the total amount payable pursuant to the applicable Rate(s) set under subdivision (a) of this 

466 Article, for the Project Water and/or Contractor’s Water Rights Water scheduled to be delivered 

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

468 month and before the end of each calendar month thereafter, the Contractor shall make an advance 

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

470 Scheduled to be delivered pursuant to this Contract during the second month immediately following. 

471 Adjustments between advance payments for Water Scheduled and payments at Rates due for Water 

472 Delivered shall be made before the end of the following month; Provided, That any revised schedule 

473 submitted by the Contractor pursuant to Article 4 of this Contract which increases the amount of 

474 Water Delivered pursuant to this Contract during any month shall be accompanied with appropriate 

475 advance payment, at the Rates then in effect, to assure that Project Water and/or Contractor’s Water 

476 Rights Water is not delivered to the Contractor in advance of such payment. In any month in which 

477 the quantity of Water Delivered to the Contractor pursuant to this Contract equals the quantity of 

478 Water Scheduled and paid for by the Contractor, no additional Project Water and/or Contractor’s 

479 Water Rights Water shall be delivered to the Contractor unless and until an advance payment at the 
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480 Rates then in effect for such additional Project Water and/or Contractor’s Water Rights Water is 

481 made. Final adjustment between the advance payments for the Water Scheduled and payments for 

482 the quantities of Water Delivered during each Year pursuant to this Contract shall be made as soon as 

483 practicable but no later than 

484 April 30th of the following Year, or 60 days after the delivery of Project Water carried over under 

485 subdivision (f) of Article 3 of this Contract if such water is not delivered by the last day of February. 

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

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

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

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

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

491 water delivery report shall be deemed a bill for the payment of Charges and the applicable Tiered 

492 Pricing Component for Water Delivered. Adjustment for overpayment or underpayment of Charges 

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

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

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

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

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

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

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

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

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

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

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

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

505 allocated and applied in accordance with Federal Reclamation law and the associated rules or 
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506 regulations, and the then-current Project ratesetting policy for M&I Water. 

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

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

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

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

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

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

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

514 reports, or information. 

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

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

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

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

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

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

521 effect without amending this Contract. 

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

523 80 percent of the Contract Total, then before the end of the month following the month of delivery 

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

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

526 80 percent of the Contract Total, but less than or equal to 90 percent of the Contract Total, shall equal 

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

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

529 exceeds 90 percent of the Contract Total shall equal the difference between (i) the Rate established 

530 under subdivision (a) of this Article and (ii) the M&I Full Cost Water Rate. 
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531 (2) Omitted. 

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

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

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

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

536 Article 3 of this Contract. 

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

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

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

540 appropriate, except in instances where a minimum Rate is applicable in accordance with the relevant 

541 Project ratesetting policy. Changes of significance in practices which implement the Contracting 

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

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

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

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

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

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

548 then-applicable Project ratesetting policy. 

549 (m) Omitted. 

550 (n) The Contractor shall be responsible for the payment for all incremental power 

551 required to pump Project Water and the Contractor’s Water Rights Water to the Contractor’s Water 

552 Treatment Plant in lieu of Hinkle Reservoir. Each month, the Contracting Officer will determine the 

553 quantity of said incremental power used during the preceding month and provide the number of 

554 kilowatt-hours so used to the supplier of the incremental power and the Contractor. 

555 (o) With respect to the Rates for M&I water, the Contractor asserts that it is not 
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556 legally obligated to pay any Project deficits claimed by the United States to have accrued as of the 

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

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

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

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

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

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

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

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

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

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

567 judicial ruling in favor of any other Project M&I contractor on any of these issues, and credits for 

568 payments heretofore made, Provided, That the basis for such ruling is applicable to the Contractor. 

569 (p) The Contractor and the Contracting Officer concur that, as of the effective date 

570 of this Contract, there is no O&M deficit under the P.L. 101-514 CVP Contract. 

571 8. Omitted. 

572 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

576 guidelines or regulations then in effect; Provided, That the portion of the Contract Total originally 

577 attributable to the P.L. 101-514 CVP Contract (13,000 acre-feet) may only be sold, transferred or 

578 exchanged to others for reasonable and beneficial uses within the Counties of Sacramento and El 

579 Dorado, State of California. No sale, transfer, or exchange of Project Water under this Contract may 

580 take place without the prior written approval of the Contracting Officer, except as provided for in 

581 subdivision (b) of this Article, and no such sales, transfers, or exchanges shall be approved absent all 
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582 appropriate environmental documentation, including but not limited to documents prepared pursuant 

583 to NEPA and ESA . Such environmental documentation should include, as appropriate, an analysis 

584 of groundwater impacts and economic and social effects, including environmental justice, of the 

585 proposed water transfers on both the transferor and transferee. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

601 be delivered to established cropland, wildlife refuges, groundwater basins or M&I use; (ii) occur 

602 within a single Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water 

603 through existing Project facilities with no new construction or modifications to Project facilities and 

604 be between existing Project Contractors and/or the Contractor and the United States, Department of 

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

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

607 Federal law. Such water transfers must not lead to land conversion. 
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608 (d) Solely for the purpose of determining whether Section 3405(a)(1)(M) of the 

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

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

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

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

613 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

615 capital, interest and deficit (if any) obligations for the Year shall be applied first to any current 

616 liabilities of the Contractor arising out of this Contract then due and payable. Overpayments of more 

617 than $1,000 shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such 

618 overpayment, at the option of the Contractor, may be credited against amounts to become due to the 

619 United States by the Contractor. With respect to overpayment, such refund or adjustment shall 

620 constitute the sole remedy of the Contractor or anyone having or claiming to have the right to the use 

621 of any of the Project Water supply provided for herein. All credits and refunds of overpayments shall 

622 be made within 30 days of the Contracting Officer obtaining direction as to how to credit or refund 

623 such overpayment in response to the notice to the Contractor that it has finalized the accounts for the 

624 Year in which the overpayment was made. 

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

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

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

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

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

630 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

633 renewals thereof, providing for water deliveries from the Project, the Contracting Officer shall make 
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634 all reasonable efforts to optimize Project Water deliveries to the Contractor as provided in this 

635 Contract. 

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

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

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

639 the delivery of Project Water and/or Contractor’s water Rights Water to the Contractor, but so far as 

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

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

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

643 such service. Upon resumption of service after such reduction or discontinuance, and if requested by 

644 the Contractor, the United States will, if possible, deliver the quantity of Project Water and/or 

645 Contractor’s Water Rights Water which would have been delivered hereunder in the absence of such 

646 discontinuance or reduction. 

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

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

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

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

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

652 under the Contractor. 

653 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

656 Contractor pursuant to this long-term renewal Contract. In the event the Contracting Officer 

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

658 Contractor of said determination as soon as practicable. 

659 (b) If there is a Condition of Shortage because of errors in physical operations of 
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660 the Project, drought, other physical causes beyond the control of the Contracting Officer or actions 

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

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

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

664 (c) Omitted. 

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

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

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

668 13. Omitted. 

669 RULES AND REGULATIONS

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

671 to this Contract is subject to Federal Reclamation law, as amended and supplemented, and the rules 

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

673 WATER AND AIR POLLUTION CONTROL

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

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

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

677 QUALITY OF WATER

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

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

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

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

682 3050), or other existing Federal laws. The United States is under no obligation to construct or 

683 furnish water treatment facilities to maintain or to improve the quality of Water Delivered to the 

684 Contractor pursuant to this Contract. The United States does not warrant the quality of Water 

685 Delivered to the Contractor pursuant to this Contract. 
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686 (b) The O&M of Project facilities shall be performed in such manner as is 

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

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

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

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

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

692 Area. 

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

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

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

696 WATER ACQUIRED BY THE CONTRACTOR

697 OTHER THAN FROM THE UNITED STATES

698 17. (a) Omitted. 

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

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

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

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

703 necessary, consistent with the following provisions: 

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

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

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

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

708 superseded from time to time. In addition, if electrical power is required to pump non-Project water 

709 through the facilities, the Contractor shall be responsible for obtaining the necessary power and 

710 paying the necessary charges therefor. 
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711 (2) Delivery of such non-Project water in and through Project facilities 

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

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

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

715 Project contractors; or (iv) interfere with the physical maintenance of the Project facilities; Provided,

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

717 Water Rights Water through Project storage facilities to the extent required to satisfy the Contractor’s 

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

719 law. Provided further, That the United States has determined that the delivery of non-Project water 

720 in and through Project facilities pursuant to Warren Act Contract No. 6-07-20-W1315 between the 

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

722 the future, satisfies the requirements of this Article. 

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

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

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

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

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

728 or assigns, act in (i) extracting or diverting non-Project water from any source, or (ii) diverting such 

729 non-Project water into Project facilities. 

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

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

732 groundwater management plan applicable to the Contractor for the area from which it was extracted. 

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

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

735 the facilities declared to be available by the Contracting Officer for conveyance and transportation of 
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736 non-Project water prior to any such remaining capacity being made available to non-Project 

737 Contractors.

738 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

752 the extent reasonably practicable. 

753 COORDINATION AND COOPERATION

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

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

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

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

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

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

760 limited to, budget issues. The communication, coordination, and cooperation provided for hereunder 
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761 shall extend to all provisions of this Contract. Each party shall retain exclusive decision making 

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

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

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

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

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

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

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

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

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

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

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

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

774 improve water supply, water quality, and reliability. 

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

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

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

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

779 California to seek improved water resource management. 

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

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

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

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

784 activities, and other issues as appropriate. 

785 (d) Without limiting the contractual obligations of the Contracting Officer under 
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786 the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 

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

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

789 the physical integrity of structures or facilities. 

790 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

797 percent per year for each day the payment is delinquent beyond the due date. Further, the Contractor 

798 shall pay any fees incurred for debt collection services associated with a delinquent payment. 

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

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

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

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

803 remain fixed for the duration of the delinquent period. 

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

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

806 accrued interest, and finally to the overdue payment. 

807 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

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

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

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

819 by or on behalf of the Contractor, state that all qualified applicants will receive consideration for 
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820 employment without discrimination because of race, color, religion, sex, or national origin. 

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

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

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

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

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

826 employment. 

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

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

829 of Labor. 

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

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

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

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

834 regulations, and orders. 

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

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

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

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

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

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

841 by law. 

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

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

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

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

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

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

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

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

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

851 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

855 water users in their obligations to the Contractor. 

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

857 receiving benefits under this Contract. The United States shall not make water available to the 
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858 Contractor through Project facilities during any period in which the Contractor may be in arrears in 

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

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

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

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

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

864 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

883 24. Omitted. 

884 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

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

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

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

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

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

890 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 
Contract No. 6-07-20-W1373-LTR1

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

892 administration. 

893 WATER CONSERVATION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

909 program in accordance with the time schedules therein. 

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

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

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

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

914 Officer to be inappropriate for the Contractor. 

915 (c) The Contractor shall submit to the Contracting Officer a report on the status of 
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916 its implementation of the water conservation plan on the reporting dates specified in the then existing 

917 conservation and efficiency criteria established under Federal law. 

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

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

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

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

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

923 evaluating water conservation plans established under Federal law. 

924 (e) If the Contractor is engaged indirect groundwater recharge, such activity shall 

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

926 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

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

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

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

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

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

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

933 Reclamation law. 

934 28. Omitted. 

935 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

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

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

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

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

940 or allotted. 

941 BOOKS, RECORDS, AND REPORTS

942 30. (a) The Contractor shall establish and maintain accounts and other books and 
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943 records pertaining to administration of the terms and conditions of this Contract, including: the 

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

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

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

947 may require. Subject to applicable Federal laws and regulations, each party to this Contract shall 

948 have the right during office hours to examine and make copies of the other party's books and records 

949 relating to matters covered by this Contract. 

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

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

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

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

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

955 (c) Omitted. 

956 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

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

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

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

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

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

962 concurrence of said other party. 

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

964 of any proposed assignment. 

965 SEVERABILITY

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

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

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

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

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

971 organization obtains a final court decision holding that such provision is legally invalid or 
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972 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

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

974 decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

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

976 specified above may be extended by mutual agreement of the parties. Pending the completion of the 

977 actions designated above, to the extent it can do so without violating any applicable provisions of 

978 law, the United States shall continue to make the quantities of Project Water and/or Contractor’s 

979 Water Rights Water specified in this Contract available to the Contractor pursuant to the provisions 

980 of this Contract which were not found to be legally invalid or unenforceable in the final court 

981 decision. 

982 RESOLUTION OF DISPUTES

983 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

984 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

985 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

986 any matter to Department of Justice, the party shall provide to the other party 30 days’ written notice 

987 of the intent to take such action; Provided, That such notice shall not be required where a delay in 

988 commencing an action would prejudice the interests of the party that intends to file suit. During the 

989 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in an attempt 

990 to resolve the dispute. Except as specifically provided, nothing herein is intended to waive or abridge 

991 any right or remedy that the Contractor or the United States may have. 

992 OFFICIALS NOT TO BENEFIT

993 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

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

995 manner as other water users or landowners. 

996 CHANGES IN CONTRACTOR’S SERVICE AREA

997 35. (a) While this Contract is in effect, no change may be made in the Contractor's 
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998 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

999 except upon the Contracting Officer's written consent. 

1000 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1001 Officer will notify the Contractor of any additional information required by the Contracting Officer 

1002 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

1003 timely completion of the process. Such process will analyze whether the proposed change is likely 

1004 to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability of 

1005 the Contractor to pay for Project Water furnished under this Contract or to pay for any Federally1006 constructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

1007 Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply with 

1008 the NEPA and ESA. The Contractor will be responsible for all costs incurred by the Contracting 

1009 Officer in this process, and such costs will be paid in accordance with Article 25 of this Contract. 

1010 FEDERAL LAWS

1011 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

1012 validity or application in connection with the performance of the terms and conditions of this 

1013 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

1014 terms and conditions of this Contract unless and until relief from application of such Federal law or 

1015 regulation to the implementing provision of the Contract is granted by a court of competent 

1016 jurisdiction. 

1017 NOTICES

1018 37. Any notice, demand, or request authorized or required by this Contract shall be 

1019 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 

1020 to the Area Manager, Bureau of Reclamation, 7794 Folsom Dam Road, Folsom, California 95630-

1021 1799, and on behalf of the United States, when mailed, postage prepaid, or delivered to the Board of 

1022 Directors of the San Juan Water District, 9935 Auburn Folsom Road, Granite Bay, California 95746. 

1023 The designation of the addressee or the address may be changed by notice given in the same manner 

1024 as provided in this Article for other notices. 

1025 CONFIRMATION OF CONTRACT

1026 38. The Contractor, after the execution of this Contract, shall furnish to the Contracting 

1027 Officer evidence that pursuant to the laws of the State of California, the Contractor is a legally 
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1028 constituted entity and the Contract is lawful, valid, and binding on the Contractor. This Contract 

1029 shall not be binding on the United States until such evidence has been provided to the Contracting 

1030 Officer=s satisfaction. 

1031 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

1032 year first above written. 

1033 THE UNITED STATES OF AMERICA 

1034 By: _________________________________________ 

1035 Regional Director, Mid-Pacific Region 

1036 Bureau of Reclamation 

1037 (SEAL) 

1038 SAN JUAN WATER DISTRICT 

1039 By: _________________________________________ 

1040 President of the Board of Directors 

1041 Attest: 

1042 By: _______________________________ 

1043 Secretary of the Board of Directors 

1044 (H:\pub 440\LTRC\Folsom Final Draft LTRC’s\10-25-04 San Juan Final Draft Contract with 

1045 exhibits.doc) 
Contract No. 6-07-20-W1373-LTR1

EXHIBIT A

[Map or Description of Service Area] 
Contract No. 6-07-20-W1373-LTR1

EXHIBIT B

SAN JUAN WATER DISTRICT – FOLSOM LAKE

 2004 Water Rates Per

 Acre-Foot

 

COST-OF-SERVICE RATES: M&I Water

 

Capital Rates: $6.01 

 

O&M Rates: 

 Water Marketing $5.01 

 Storage $6.38 

 Conveyance $0.00 

 Direct Pumping $0.00 

 

Deficit Rates: 

 Non-Interest Bearing $0.00 

 Interest Bearing $0.00 

 

CFO/PFR Adj. Rate: * $5.24 

 

 CONTRACT RATE: $22.64 

 

Tiered Pricing Component>80%<=90% of Contract 

Total (Full Cost Rate – COS Rate)/2) $1.87 

Tiered Pricing Component>90% of Contract 

Total (Full Cost Rate – COS Rate) $3.74 

 

SURCHARGES UNDER P.L. 102-575 

TO RESTORATION FUND** 

 

M&I Surcharge $32.58 

Restoration Payments [3407(d)(2)(A)] $15.64 

 

* Rate represents the Chief Financial Officer (CFO) adjustment and Provision 

for Replacement (PFR) credit for option 2 cost deferment to be distributed over a 

5-year period beginning with 2003 water rates. 

 

** The surcharges are payments in addition to the water rates and were determined 

pursuant to Title XXXIV of Public Law 102-575. Restoration fund surcharges 

under P.L. 102-575 are on a fiscal year basis (10/1-9/30).