R. O. Draft 05/11-2004 

Contract No. 

0-07-20-W0190-R-1 

SUBCONTRACT BETWEEN THE COUNTY OF COLUSA

AND THE LA GRANDE WATER DISTRICT

PROVIDING FOR RESALE OF WATER UNDER CONTRACT BETWEEN 

THE UNITED STATES OF AMERICA AND THE COUNTY OF COLUSA

Table of Contents

Article No. Title Page No.

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

Explanatory Recitals ................................................................................ 1-3 

1 Incorporation of Terms of Master Contract.................................................3 

2 Resale of Water............................................................................................3 

3 Points of Delivery--Operation and Maintenance of 

 Pumping Plants by Member Units.............................................................3 

4 Assumption of Administrative Responsibilities by 

 Member Unit .............................................................................................4 

5 Term of Subcontract ....................................................................................4 

6 Contracts for Resale of Water......................................................................4 

7 General Obligation of the County................................................................5 

8 General Obligation of the Member Unit......................................................5 

9 County to be Held Harmless........................................................................5 

10 Notices ..................................................................................................... 5-6 

11 Assignment Limited--Successors and Assigns Obligated ...........................6 

12 Officials Not to Benefit................................................................................6 

13 Confirmation of Subcontract.................................................................... 6-7 

14 Amendments of Master Contract.................................................................7 

 Signature Page .............................................................................................8
1 R. O. Draft 05/11-2004 

2 Contract No. 

3 0-07-20-W0190-R-1 

4 SUBCONTRACT BETWEEN THE COUNTY OF COLUSA

5 AND THE LA GRANDE WATER DISTRICT

6 PROVIDING FOR RESALE OF WATER UNDER CONTRACT BETWEEN 

7 THE UNITED STATES OF AMERICA AND THE COUNTY OF COLUSA

8 This Subcontract is made this _____ day of _______________, 2004, by and between the 

9 COUNTY OF COLUSA, hereinafter referred to as the County, acting through the Chairman of 

10 the Board of Supervisors, with its principal place of business in Colusa, California, and the LA 

11 GRANDE WATER DISTRICT, hereinafter referred to as the Member Unit, acting through the 

12 President and Secretary of the Board of Directors, with its principal place of business in 

13 Williams, California. 

14 WITNESSETH, that: 

15 EXPLANATORY RECITALS

 [1st 16 ] WHEREAS, on _______________, ____, 2004, in pursuance generally of the Act 

17 of June 17, 1902 (32 Stat. 388), and Acts amendatory thereof or supplementary thereto, the 

18 United States of America and the County of Colusa entered into Contract 

19 No. 14-06-200-8310A-R-1 providing for water service, hereinafter referred to as Master 

20 Contract; and 

 [2nd 21 ] WHEREAS, pursuant to said Master Contract, the United States agreed to furnish 

22 up to 20,000 acre-feet of water annually from the Tehama-Colusa Canal to the County; and 

 [3rd 23 } WHEREAS, Article 39 of the Master Contract states: 
Contract No. 0-07-20-W0190-R-1 

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1 “The Contractor [the County] may enter into subcontracts with Member Units for the 

2 resale and distribution of water furnished pursuant to this Contract within the Contractor=s 

3 Service Area. Each such Member Unit subcontract shall be subject to the obligations and 

4 limitations imposed, and to the rights granted, by this Contract and shall so provide. The terms 

5 and conditions of each Member Unit=s subcontract shall be approved by the Contracting Officer 

6 prior to the execution of such Member Unit subcontract, which approval shall be limited to a 

7 determination that the subcontract is consistent with the provisions of this Contract. Nothing 

8 herein or therein contained shall be deemed in any way to release the Contractor from its primary 

9 liability to the United States hereunder with respect to each and all of the obligations undertaken 

10 by the Contractor in this Contract.”; and 

 [4th 11 ] WHEREAS, the Member Unit is a public agency within the County’s service area 

12 organized for the purpose of obtaining a water supply from the Tehama-Colusa Canal and is 

13 eligible to enter into a subcontract within the meaning of Article 39 of the Master Contract; and 

 [5th 14 ] WHEREAS, the Member Unit and the County have previously entered into and 

15 performed under subcontracts between them for the resale and delivery by the County to 

16 Member Unit of up to 2,200 acre-feet annually of Central Valley Project Water that the County 

17 had rights to receive under it prior Master Contract with the United States (Contract 

18 No. 14-06-200-8310A), dated November 18, 1975, and the interim renewal contracts related 

19 thereto; and 

 [6th 20 ] WHEREAS, there is a present and potential need for water in the amount of 2,200 

21 acre-feet annually for irrigation and/or municipal and industrial purposes with the boundaries of 

22 the Member Unit, and that such a water supply to meet these present and potential needs can be 

23 made available by and through the works constructed by the United States; and 
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 [7th 1 ] WHEREAS, upon motion duly made and seconded, the Board of Supervisors of 

2 the County voted unanimously, at a regular meeting thereof on January 18, 1980, to approve the 

3 resale to the Member Unit by subcontract of 2,200 acre-feet of the County’s annual entitlement 

4 of 20,000 acre-feet of water pursuant to the Master Contract, subject to the prior approval of the 

5 Contracting Officer as defined in the Master Contract; and 

 [8th 6 ] WHEREAS, said Contracting Officer has given advance consent to and approval 

7 of the form, terms, and conditions of the Subcontract between the County and the Member Unit. 

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

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

10 INCORPORATION OF TERMS OF MASTER CONTRACT

11 1. This Subcontract is entered into pursuant to Article 39 of the Master Contract and 

12 subject to the terms, conditions, obligations, and limitations imposed by the Master Contract 

13 unless specifically provided to the contrary herein. 

14 RESALE OF WATER

15 2. The County hereby resells to the Member Unit a quantity of water up to 2,200 

16 acre-feet of the 20,000 acre-feet of water to which the County is annually entitled pursuant to 

17 Article 3 of the Master Contract. The Member Unit will not be liable to the County for 

18 administrative or other charges in connection with said resale of water. 

19 POINTS OF DELIVERY--OPERATION AND MAINTENANCE 

20 OF PUMPING PLANTS BY MEMBER UNITS

21 3. The water to be furnished to the Member Unit pursuant to this Subcontract shall 

22 be delivered at approved turnouts on the Tehama-Colusa Canal and any additional point or points 

23 of delivery either on the Tehama-Colusa Canal or another location or locations mutually agreed 

24 to in writing by the Contracting Officer and the Contractor.
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1 ASSUMPTION OF ADMINISTRATIVE RESPONSIBILITIES BY MEMBER UNIT

2 4. The Member Unit, rather than the County, shall perform the following 

3 administrative responsibilities with respect to the resale of water pursuant to this Subcontract: 

4 (a) The Member Unit shall submit water use schedules to the United States in 

5 the manner provided for in Article 4 of the Master Contract; 

6 (b) The Member Unit shall make payment, on behalf of the County, to the 

7 United States for water furnished pursuant to the Subcontract and in the manner and at the rates 

8 provided for in Article 7 of the Master Contract. The County shall return to the Member Unit 

9 any refund resulting from adjustments pursuant to Article 7 of the Master Contract. 

10 (c) The Member Unit, on behalf of the County, shall pay interest on 

11 delinquent payment for water furnished pursuant to this Subcontract in the manner provided for 

12 in Article 20 of the Master Contract. 

13 (d) The Member Unit, on behalf of the County, shall establish and maintain 

14 the books, records, and reports pertaining to the Member Unit’s financial transactions, land use 

15 and crop census, water use, and other matters in the manner provided in Article 30 of the Master 

16 Contract. 

17 TERM OF SUBCONTRACT

18 5. The term of this Subcontract shall be the same as the term of the Master Contract. 

19 CONTRACTS FOR RESALE OF WATER

20 6. The Member Unit may enter into contracts, transfers, or exchanges of water 

21 furnished pursuant to this Subcontract in the manner provided for in Article 9 of the Master 

22 Contract. 
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1 GENERAL OBLIGATION OF THE COUNTY

2 7. Nothing herein contained shall be deemed in any way to release the County from 

3 its primary liability to the United States pursuant to the Master Contract with respect to each and 

4 all of the obligations undertaken by the County in said Master Contract. 

5 GENERAL OBLIGATION OF THE MEMBER UNIT

6 8. (a) The Member Unit as a whole is obligated to pay the charges becoming due 

7 as provided in this Subcontract notwithstanding the individual default in the payment to the 

8 Member Unit by individual water users of assessments, tolls, or other charges levied by the 

9 Member Unit. The lands which may be charged with any taxes or assessments under this 

10 Subcontract are hereby designated as all the lands within the service area of the Member Unit. 

11 (b) The Member Unit will cause to be levied and collected all necessary 

12 assessments, standby charges, or water tolls, and will use all of the authority and resources of the 

13 Member Unit to meet its obligations hereunder to make in full all payments to be made pursuant 

14 to this Subcontract on or before the dates such payments become due and to meet its other 

15 obligations under this Subcontract. The Member Unit may, either or both, require the payment 

16 of service or standby charges or levy assessments for such water or service. 

17 COUNTY TO BE HELD HARMLESS

18 9. The Member Unit shall hold the County harmless from every claim for damage to 

19 persons or property, and from each and every obligation, arising out of, or connected with, the 

20 performance by the Member Unit of this Subcontract. 

21 NOTICES

22 10. Any notice, demand, or request authorized or required by this Subcontract shall be 

23 deemed to have been given when mailed, postage prepaid, or delivered to the Area Manager, 
Contract No. 0-07-20-W0190-R-1 

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1 Northern California Area Office, Bureau of Reclamation, 16349 Shasta Dam Boulevard, Shasta 

2 Lake, California 96019, on behalf of the United States; to the Board of Supervisors, County of 

3 Colusa, 546 Jay Street, Colusa, California 95932, on behalf of the County; and to the Board of 

4 Directors, P.O. Box 756, Williams, California 95987, on behalf of the Member Unit. The 

5 designation of the addressee or the address may be changed by notice given in the same manner 

6 as provided in this Article for other notices. 

7 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

8 11. (a) The provisions of this Subcontract shall apply to and bind the successors 

9 and assigns of the parties hereto, but no assignment or transfer of this Subcontract or any right or 

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

11 (b) The assignment of any right or interest in this Subcontract by either party 

12 shall not interfere with the rights or obligations of the other party to this Subcontract absent the 

13 written concurrence of said other party. 

14 (c) The Contracting Officer shall not unreasonably condition or withhold his 

15 approval of any proposed assignment. 

16 OFFICIALS NOT TO BENEFIT

17 12. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

18 Member Unit shall benefit from this Subcontract other than as a water user or landowner in the 

19 same manner as other water users or landowners. 

20 CONFIRMATION OF SUBCONTRACT

21 13. The Member Unit, upon execution of this Subcontract, shall promptly secure a 

22 final decree of the proper court of the State of California, if appropriate, approving and 

23 confirming this Subcontract and decreeing and adjudging it and the apportionment of the benefits 
Contract No. 0-07-20-W0190-R-1 

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1 made thereunder to be lawful, valid, and binding on the Member Unit. The Member Unit shall 

2 furnish to the County and the United States a certified copy of such decree and pertinent 

3 supporting records or a document describing why securing such a decree was unnecessary. 

4 AMENDMENTS OF MASTER CONTRACT

5 14. The County and the Member Unit agree that neither party will take any action, 

6 without the prior written consent of the other party, which would result in an amendment to the 

7 Master Contract or this Subcontract which would increase the rates of payment for or the amount 

8 of water furnished pursuant thereto. 
Contract No. 0-07-20-W0190-R-1 

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1 IN WITNESS WHEREOF, the parties hereto have executed this Subcontract the day and 

2 year here and above written. 

3 COUNTY OF COLUSA 

4 By: ________________________________ 

5 Chairman, Board of Supervisors 

6 Attest: 

7 _________________________________ 

8 County Clerk and Ex-Officio Clerk of the 

9 Board of Supervisors of the County of Colusa 

10 LA GRANDE WATER DISTRICT 

11 By: ________________________________ 

12 President, Board of Directors 

 

13 By: ________________________________ 

14 Secretary, Board of Directors 

15 Approved: 

16 THE UNITED STATES OF AMERICA 

17 By: _________________________________ 

18 Regional Director, Mid-Pacific Region 

19 Bureau of Reclamation 

20 (I:\LTRC\Draft LTRC\05-11-04/ LaGrande WD Final Draft Subcontract form.doc)-