M&I Only 

Contract No. 

14-06-200-3474A-IR1 

 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

THE CITY OF ROSEVILLE

PROVIDING FOR PROJECT WATER SERVICE

FROM THE AMERICAN RIVER DIVISION

Table of Contents

Article No. Title Page No.

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

Explanatory Recitals ................................................................................................1 

1 Definitions ...............................................................................................................5 

2 Term of Contract ......................................................................................................8 

3 Water to be Made Available and Delivered to the Contractor ..............................10 

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

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

6 Measurement of Water Within the Service Area ...................................................15 

7 Rates and Method of Payment for Water ...............................................................17 

8 Non-Interest Bearing Operation and Maintenance Deficits ..................................21 

9 Sales, Transfers, or Exchanges of Water ...............................................................21 

10 Application of Payments and Adjustments ............................................................22 

11 Temporary Reductions--Return Flows ..................................................................23 

12 Constraints on the Availability of Water ...............................................................24 

13 Unavoidable Groundwater Percolation ..................................................................25 

14 Rules, Regulations and Determinations .................................................................25 

15 Water and Air Pollution Control ............................................................................25 

16 Quality of Water ....................................................................................................25 

17 Water Acquired by the Contractor Other Than From the United States ...............26 
M&I Only 

Contract No. 

14-06-200-3474A-IR1 

 

Table of Contents - continued

Article No. Title Page No.

18 Opinions and Determinations ................................................................................28 

19 Coordination and Cooperation ...............................................................................28 

20 Charges for Delinquent Payments .........................................................................30 

21 Equal Opportunity ..................................................................................................30 

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

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

24 Privacy Act Compliance ........................................................................................32 

25 Contractor to Pay Certain Miscellaneous Costs ....................................................32 

26 Water Conservation ...............................................................................................33 

27 Existing or Acquired Water or Water Rights .........................................................34 

28 Operation and Maintenance by the Operating Non-Federal Entity .......................35 

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

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

31 Assignment Limited--Successors and Assigns Obligated .....................................35 

32 Severability ............................................................................................................36 

33 Resolution of Disputes ...........................................................................................36 

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

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

36 Federal Laws ..........................................................................................................37 

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

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

39 Contract Drafting Considerations ..........................................................................38 

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

Exhibit A - Map of Contractor’s Service Area 

Exhibit B – Rates and Charges 
Contract No. 

14-06-200-3474A-IR1 

1 

2 

3 

4 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

5 INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

6 AND

7 THE CITY OF ROSEVILLE

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM THE AMERICAN RIVER DIVISION

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

 THIS CONTRACT, made this _____ day of ____________________, 2010, in pursuance 

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

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

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

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

Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all collectively hereinafter referred to 

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

as the United States, and THE CITY OF ROSEVILLE, hereinafter referred to as the Contractor, a 

public agency of the State of California, duly organized, existing, and acting pursuant to the laws 

thereof, 

 WITNESSETH, That: 

21 EXPLANATORY RECITALS

22 

23 

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

Project (Project), California, for diversion, storage, carriage, distribution and beneficial use, for flood 
Contract No. 14-06-200-3474A-IR1 

2

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

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

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

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

San Joaquin River and their tributaries; and 

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

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

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

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

to California law for operation of the Project; and 

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

No. 14-06-200-3474A, dated September 9, 1967, which contract was amended on November 30, 

1976 and is hereinafter referred to as the Existing Contract, which established terms for the annual 

delivery of up to 32,000 af to the Contractor of Project Water from the American River Division 

from January 1, 1971, through December 31, 2010; and

 [5th] WHEREAS, the United States and the Contractor have, subsequently entered into a 

binding agreement, identified as Binding Agreement No. 14-06-200-3474A-BA, which sets out the 

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

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

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

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

 [6th] WHEREAS, Section 3404(c) of the Central Valley Project Improvement Act (CVPIA) 

provides for long-term renewal of the Existing Contract following completion of appropriate 

environmental documentation, including the PEIS, which was required by Section 3409 of the 

CVPIA, pursuant to the National Environmental Policy Act (NEPA) analyzing the direct and indirect 

impacts and benefits of implementing the CVPIA and the potential renewal of all existing contracts 
Contract No. 14-06-200-3474A-IR1 

3

49 

50 

51 

52 

53 

54 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65 

66 

67 

68 

69 

70 

71 

72 

73 

for Project Water; and 

 [6.1] Omitted; and 

 [7th] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

its obligations under the Existing Contract; and 

 [8th] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

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

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

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

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

 [9th] WHEREAS, water obtained from the Project has been relied upon by urban areas 

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

of its water supply; and 

 [10th] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

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

[10.1] WHEREAS, in the California Bay-Delta Authority (CALFED) Programmatic Record 

of Decision, dated August 28, 2000, the United States and the State of California adopted a general 

target of continuously improving Delta water quality for all uses. The CALFED Agencies’ target for 

providing safe, reliable, and affordable drinking water in a cost-effective way, is to achieve either: 

“(a) average concentrations at Clifton Court Forebay and other southern and central Delta drinking 

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

public health protection using a cost-effective combination of alternative source waters, source 

control and treatment technologies;” and 

[11th] WHEREAS, the Secretary of the Interior (Secretary) intends through coordination, 

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

reliability of the Project for all Project purposes; and 
Contract No. 14-06-200-3474A-IR1 

4

74 

75 

76 

77 

78 

79 

80 

81 

82 

83 

84 

85 

86 

87 

88 

89 

90 

91 

92 

93 

94 

95 

96 

97 

98 

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

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

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

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

Condition of Shortage; and 

[12th] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

relative to the Project; and 

[13th] WHEREAS, the parties intend by this Contract to develop a more cooperative 

relationship in order to achieve their mutual goals; and 

[13.1] WHEREAS, the Contractor is a signatory to the Water Forum Agreement, dated April 

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

Sacramento region’s economic health and planned development through the year 2030, and 

(2) preserve the fishery, wildlife, recreational and aesthetic values of the lower American River; and 

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

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

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

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

 [13.3] WHEREAS, in order to continue water service provided under Project water service 

contracts that expire prior to the completion of all appropriate environmental documentation, the 

United States intends to execute interim renewal contracts pursuant to Section 3404(c)(1) of the 

CVPIA , for a period not to exceed three (3) Years in length, and for successive interim periods of 
Contract No. 14-06-200-3474A-IR1 

5

99 

100 

101 

102 

103 

104 

105 

106 

107 

108 

not more than two (2) Years in length, until such appropriate environmental documentation, is finally 

completed, at which time the Secretary shall, pursuant to Federal Reclamation law, upon request of 

the Contractor, enter into a long-term renewal contract for a period of forty (40) Years; and may 

thereafter renew such long-term renewal contracts for successive periods not to exceed forty (40) 

Years each; and 

 [14th] WHEREAS, the United States and the Contractor are willing to enter into and execute 

this Interim Renewal (hereinafter “Contract”) consistent with the provisions of section 3404(c) of 

the CVPIA and pursuant to Federal Reclamation law on the terms and conditions set forth below. 

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

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

109 DEFINITIONS

110 

111 

112 

113 

114 

115 

116 

117 

118 

119 

120 

121 

122 

123 

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

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

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

dates inclusive; 

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

addition to the Rates as determined annually by the Contracting Officer pursuant to this Contract; 

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

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

Total; 

 (d) “Contracting Officer” shall mean the Secretary’s duly authorized 

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

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

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

 (f) “Contractor's Service Area" shall mean the area to which the Contractor is 
Contract No. 14-06-200-3474A-IR1 

6

124 

125 

126 

127 

128 

129 

130 

131 

132 

133 

134 

135 

136 

137 

138 

139 

140 

141 

142 

143 

144 

145 

146 

147 

148 

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

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

amendment of this Contract; 

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

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

 (h-i) Omitted; 

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

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

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

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

may be required under Federal Reclamation law or applicable contract provisions. Interest will 

accrue on both the construction expenditures and funded O&M deficits from October 12, 1982, on 

costs outstanding at that date, or from the date incurred in the case of costs arising subsequent to 

October 12, 1982, and shall be calculated in accordance with subsections 202(3)(B) and (3)(C) of the 

Reclamation Reform Act of 1982 (RRA). The Full-Cost Rate includes actual operation, 

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

the RRA; 

(k-l) Omitted; 

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

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

thereto, and watering of livestock; 

 (n) Omitted; 

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

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

for human use and purposes such as the watering of landscaping or pasture for animals (e.g., horses) 
Contract No. 14-06-200-3474A-IR1 

7

149 

150 

151 

152 

153 

154 

155 

156 

157 

158 

159 

160 

161 

162 

163 

164 

165 

166 

167 

168 

169 

170 

171 

172 

173 

which are kept for personal enjoyment or water delivered to land holdings operated in units of less 

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

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

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

delivery of M&I Water; 

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

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

Project facilities; 

 (r) Omitted; 

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

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

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

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

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

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

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

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

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

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

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

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

contract(s). 

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

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

through any agency of the Department of the Interior; 
Contract No. 14-06-200-3474A-IR1 

8

174 

175 

176 

177 

178 

179 

180 

181 

182 

183 

184 

 (y) Omitted 

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

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

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

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

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

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

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

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

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

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

185 TERM OF CONTRACT 

186 

187 

188 

189 

190 

191 

192 

193 

194 

195 

2. (a) This Contract shall be effective from January 1, 2011 and shall remain in 

effect through February 28, 2013, and thereafter will be renewed as described in this Article. Except 

as provided in subdivision (b) of this Article, until completion of all appropriate environmental 

review, and provided that the Contractor has complied with all the terms and conditions of the 

interim renewal contract in effect for the period immediately preceding the requested successive 

interim renewal contract, this Contract will be renewed, upon request of the Contractor, for 

successive interim periods each of which shall be no more than two (2) Years in length. Also, except 

as provided in subdivision (b) of this Article, in order to promote orderly and cost effective contract 

administration, the terms and conditions in subsequent interim renewal contracts shall be identical to 

the terms and conditions in the interim renewal contract immediately preceding the subsequent 

interim renewal contract: Provided, however, That each party preserves the right to propose 

modification(s) in any interim renewal contract other than those described in subdivision (b) of this 

Article, in which case the parties shall negotiate in good faith appropriate modification(s) to be 

196 

197 

198 
Contract No. 14-06-200-3474A-IR1 

9

199 

200 

201 

202 

203 

204 

205 

206 

207 

208 

209 

210 

211 

212 

213 

214 

215 

216 

217 

218 

219 

220 

221 

222 

included in any successive interim renewal contracts. Said modification(s) of each successive 

interim renewal contract shall be agreed upon within a reasonable time prior to the expiration of the 

then existing interim renewal contract. Nothing in this Article shall in any way alter the obligation 

that, upon final completion of any necessary supplemental environmental documentation, the 

Secretary shall, pursuant to Federal Reclamation law, upon request of the Contractor, enter into a 

long-term renewal contract for a period of forty (40) Years and may thereafter renew such long-term 

renewal contracts for successive periods not to exceed forty (40) Years each. 

 (b) The parties have engaged and if necessary will continue to engage in good 

faith negotiations intended to permit the execution of a forty (40) Year long-term renewal contract 

contemplated by Section 3404 (c) of the CVPIA, hereinafter referred to as a “long-term renewal 

contract”. The parties recognize the possibility that this schedule may not be met without further 

negotiations. Accordingly: In the event (i) the Contractor and Contracting Officer have reached 

agreement on the terms of the Contractor’s long-term renewal contract or (ii) the Contractor and 

Contracting Officer have not completed the negotiations on the Contractor’s long-term renewal 

contract, believe that further negotiations on that contract would be beneficial, and mutually commit 

to continue to negotiate to seek to reach agreement, but (iii) all environmental documentation 

required to allow execution of the Contractor’s long-term renewal contract by both parties has not 

been completed in time to allow execution of the Contractor’s long-term renewal contract by 

February 28, 2013, then (iv), the parties will expeditiously complete the environmental 

documentation required of each of them in order to execute the Contractor’s long-term renewal 

contract at the earliest practicable date. In addition, the Contractor’s then-current interim renewal 

contract will be renewed without change upon the request of either party through the agreed-upon 

effective date of the Contractor’s long-term renewal contract or, in the absence of agreement on the 

terms of the Contractor’s long-term renewal contract, through the succeeding February 28. 
Contract No. 14-06-200-3474A-IR1 

10

223 

224 

225 

226 

227 

228 

 (c) The omission of language in this Contract providing for conversion of this 

interim renewal contract or any subsequent renewals thereof to a repayment contract pursuant to 

subsection (c)(1) of Section 9 of the Reclamation Projects Act of 1939 (53 Stat. 1187), shall not 

prejudice the Contractor's right to assert a right to have such language included in subsequent 

renewals of this Contract or to exercise such conversion, all as provided by law, or to negotiate the 

language regarding such conversion to be included in subsequent renewal contracts. 

229 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

230 

231 

232 

233 

234 

235 

236 

237 

238 

239 

240 

241 

242 

243 

244 

245 

246 

247 

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

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

Contract, the Contracting Officer shall make available for delivery to the Contractor up to 32,000 

acre-feet of Project Water for M&I purposes. Provided, however, during the two (2) month period of 

January and February of 2011, the Contracting Officer shall make available for delivery to the 

Contractor that portion of the 2010 allocation of Project Water unused by the Contractor under the 

Existing Contract. Water Delivered to the Contractor in accordance with this subdivision shall be 

scheduled and paid for pursuant to the provisions of Articles 4 and 7 of this Contract. 

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

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

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

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

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

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

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

was 30,400 acre feet. Nothing in subdivision (b) of this Article shall affect the rights and obligations 

of the parties under any provision of this Contract. 

 (c) The Contractor shall utilize the Project Water in accordance with all applicable 
Contract No. 14-06-200-3474A-IR1 

11

248 

249 

250 

251 

252 

253 

legal requirements. 

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

pursuant to this Contract. Groundwater recharge programs (direct, indirect, or in lieu), ground-water 

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

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

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

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

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

254 

, 

further

255 

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

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

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

Ground-water recharge programs, groundwater banking programs, surface water storage programs, 

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

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

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

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

regulations, policies, or guidelines. 

256 

257 

258 

259 

260 

261 

262 

263 

264 

265 

266 

267 

268 

269 

270 

271 

272 

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

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

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

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

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

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

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

Nothing herein shall be construed to prevent the Contractor from challenging or seeking judicial 
Contract No. 14-06-200-3474A-IR1 

12

273 

274 

275 

276 

277 

278 

279 

280 

281 

282 

283 

284 

285 

286 

287 

288 

289 

290 

291 

292 

293 

294 

295 

296 

297 

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

environmental documentation referred to in this Article. 

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

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

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

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

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

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

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

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

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

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

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

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

regulations, guidelines, and policies. 

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

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

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

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

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

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

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

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

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

the terms thereof shall not be disturbed so long as the Contractor shall fulfill all of its obligations 
Contract No. 14-06-200-3474A-IR1 

13

298 

299 

300 

301 

302 

303 

304 

305 

306 

307 

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

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

this Contract or applicable provisions of any subsequent renewal contracts. 

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

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

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

approval. 

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

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

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

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

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

such a proceeding; Provided further

308 

309 

, That in such proceedings the Contracting Officer shall recognize 

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

310 

311 

312 TIME FOR DELIVERY OF WATER

313 

314 

315 

316 

317 

318 

319 

320 

321 

322 

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

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

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

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

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

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

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

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

shall provide the Contractor with the updated Recent Historic Average. 

 (b) On or before each March 1 and at such other times as necessary, the Contractor 
Contract No. 14-06-200-3474A-IR1 

14

323 

324 

325 

326 

327 

328 

329 

330 

331 

332 

333 

334 

335 

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

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

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

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

for the Year commencing on such March 1. 

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

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

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

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

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

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

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

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

336 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

337 

338 

339 

340 

341 

342 

343 

344 

345 

346 

347 

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

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

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

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

Officer and the Contractor. 

 (b) Omitted. 

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

Service Area unless approved in advance by the Contracting Officer. 

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

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

States, or other appropriate entity as designated by the Contracting Officer (hereafter “other 
Contract No. 14-06-200-3474A-IR1 

15

348 

349 

350 

351 

352 

353 

354 

355 

356 

357 

358 

359 

360 

361 

362 

363 

364 

365 

366 

367 

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

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

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

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

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

determination of the quantity delivered for that period of time. 

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

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

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

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

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

damage, personal injury, or death arising out of or connected with the control, carriage, handling, use, 

disposal, or distribution of such Water Delivered beyond such delivery points, except for any damage 

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

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

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

assigns; 

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

(iv) damage or claims resulting from a malfunction of facilities owned and/or operated by the United 

States. 

368 MEASUREMENT OF WATER WITHIN THE SERVICE AREA

369 

370 

371 

372 

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

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

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

water measuring methods of comparable effectiveness must be acceptable to the Contracting Officer. 
Contract No. 14-06-200-3474A-IR1 

16

373 

374 

375 

376 

377 

378 

379 

380 

381 

382 

383 

384 

385 

386 

387 

388 

389 

390 

391 

392 

393 

394 

395 

396 

397 

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

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

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

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

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

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

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

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

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

described in subdivision (c) of Article 26. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the Contracting Officer to ensure compliance with subdivision (a) of this Article. 
Contract No. 14-06-200-3474A-IR1 

17

398 

399 

400 

401 

402 

403 

404 

405 

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

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

provisions described in subdivision (a) of this Article. 

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

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

Contractor’s Service Area during the previous Year. 

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

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

406 RATES AND METHOD OF PAYMENT FOR WATER

407 

408 

409 

410 

411 

412 

413 

414 

415 

416 

417 

418 

419 

420 

421 

422 

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

Delivered Water at Rates and Charges established in accordance with: (i) the Secretary’s thenexisting ratesetting policy for M&I Water, which ratesetting policy shall be amended, modified, or 

superseded only through a public notice and comment procedure; (ii) applicable Federal Reclamation 

law and associated rules and regulations, or policies; and (iii) other applicable provisions of this 

Contract. Payments shall be made by cash transaction, electronic funds transfer, or any other 

mechanism as may be agreed to in writing by the Contractor and the Contracting Officer. The Rates 

and Charges applicable to the Contractor upon execution of this Contract are set forth in Exhibit “B,” 

as may be revised annually. 

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

as follows: 

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

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

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

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

comment on such estimates. On or before September 15 of each Calendar Year, the Contracting 
Contract No. 14-06-200-3474A-IR1 

18

423 

424 

425 

426 

427 

428 

429 

430 

431 

432 

433 

434 

435 

436 

437 

438 

439 

440 

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

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

such notification shall revise Exhibit “B.” 

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

make available to the Contractor an estimate of the Rates for Project Water for the following Year 

and the computations and cost allocations upon which those Rates are based. The Contractor shall be 

allowed not less than two months to review and comment on such computations and cost allocations. 

By December 31 of each Calendar Year, the Contracting Officer shall provide the Contractor with 

the final Rates to be in effect for the upcoming Year, and such notification shall revise Exhibit “B.” 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

441 

442 

443 

444 

445 

446 

447 
Contract No. 14-06-200-3474A-IR1 

19

448 

449 

450 

451 

452 

453 

454 

455 

456 

457 

458 

459 

460 

461 

462 

463 

464 

465 

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

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

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

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

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

last day of February. 

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

subdivision (c) of this Article to the United States for Water Delivered, at the Charges then in effect, 

before the end of the month following the month of delivery. The payments shall be consistent with 

the quantities of M&I Water Delivered as shown in the water delivery report for the subject month 

prepared by the Contracting Officer. The water delivery report shall be deemed a bill for the 

payment of Charges for Water Delivered. Adjustment for overpayment or underpayment of Charges 

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

month. Any amount to be paid for past due payment of Charges shall be computed pursuant to 

Article 20 of this Contract. 

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

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

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

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

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

466 

467 

468 

469 

470 

471 

472 

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

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

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

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

allocated and applied in accordance with Federal Reclamation law and the associated rules or 
Contract No. 14-06-200-3474A-IR1 

20

473 

474 

475 

476 

477 

478 

479 

480 

481 

482 

483 

484 

485 

486 

487 

488 

489 

490 

491 

492 

493 

494 

495 

496 

497 

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

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

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

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

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

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

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

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

reports, or information. 

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

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

policies, and procedures used for establishing Rates and Charges, and/or for making and allocating 

payments, other than those set forth in this Article may be in the mutual best interest of the parties, it 

is expressly agreed that the parties may enter into agreements to modify the mechanisms, policies, 

and procedures for any of those purposes while this Contract is in effect without amending this 

Contract. 

 (j) (1-3) Omitted 

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

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

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

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

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

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

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

 (l) Except as provided in subsections 3405(a)(1)(B) and 3405(f) of the CVPIA, 
Contract No. 14-06-200-3474A-IR1 

21

498 

499 

500 

501 

502 

503 

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

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

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

then-applicable Project ratesetting policy. 

 (m) Omitted. 

 (n) Omitted. 

504 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

505 8. Omitted. 

506 SALES, TRANSFERS, OR EXCHANGES OF WATER

507 

508 

509 

510 

511 

512 

513 

514 

515 

516 

517 

518 

519 

520 

521 

522 

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

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

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

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

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

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

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

documents prepared pursuant to the National Environmental Policy Act (NEPA) and ESA. Such 

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

and economic and social effects, including environmental justice, of the proposed water transfers on 

both the transferor and transferee. 

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

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

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

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

limited to, documents prepared pursuant to NEPA and ESA analyzing annual transfers within such 
Contract No. 14-06-200-3474A-IR1 

22

523 

524 

525 

526 

527 

528 

529 

530 

531 

532 

533 

534 

535 

536 

537 

538 

539 

540 

541 

542 

543 

544 

545 

546 

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

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

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

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

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

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

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

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

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

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

M&I use, ground-water recharge, water banking or similar groundwater activities, surface water 

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

cropland, wildlife refuges, ground-water basins or M&I use, or for fish and wildlife purposes,; (ii) 

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

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

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

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

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

Federal law. 

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

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

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

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

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

547 APPLICATION OF PAYMENTS AND ADJUSTMENTS
Contract No. 14-06-200-3474A-IR1 

23

548 

549 

550 

551 

552 

553 

554 

555 

556 

557 

558 

559 

560 

561 

562 

563 

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

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

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

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

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

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

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

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

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

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

in which the overpayment was made. 

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

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

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

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

be billed for the additional costs pursuant to Article 25. 

564 TEMPORARY REDUCTIONS--RETURN FLOWS

565 

566 

567 

568 

569 

570 

571 

572 

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

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

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

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

Contract. 

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

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

maintenance, repair, or replacement of any of the Project facilities or any part thereof necessary for 
Contract No. 14-06-200-3474A-IR1 

24

573 

574 

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

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

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

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

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

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

absence of such discontinuance or reduction. 

575 

576 

577 

578 

579 

580 

581 

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

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

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

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

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

under the Contractor. 

582 

583 

584 

585 

586 CONSTRAINTS ON THE AVAILABILITY OF WATER

587 

588 

589 

590 

591 

592 

593 

594 

595 

596 

597 

598 

599 

600 

601 

602 

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

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

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

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

determination as soon as practicable. 

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

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

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

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

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

 (c) Omitted. 

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

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

or superseded only through a public notice and comment procedure. 
Contract No. 14-06-200-3474A-IR1 

25

603 

604 

605 

606 

607 

608 

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

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

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

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

applicability of such a policy. By agreeing to the foregoing, the Contracting Officer does not waive 

any legal defenses or remedies that it may then have to assert in such a proceeding. 

609 UNAVOIDABLE GROUNDWATER PERCOLATION

610 13. Omitted. 

611 RULES, REGULATIONS AND DETERMINATIONS

612 

613 

614 

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

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

rules and regulations promulgated by the Secretary under such law.

615 WATER AND AIR POLLUTION CONTROL

616 

617 

618 

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

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

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

619 QUALITY OF WATER

620 

621 

622 

623 

624 

625 

626 

627 

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

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

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

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

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

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

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

Delivered to the Contractor pursuant to this Contract. 
Contract No. 14-06-200-3474A-IR1 

26

628 

629 

630 

631 

632 

633 

634 

635 

636 

637 

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

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

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

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

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

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

Area. 

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

and cooperate with each other with respect to the O&M of the Project by the United States in 

accordance with Articles 11 and 19 of this Contract. 

638 WATER ACQUIRED BY THE CONTRACTOR

639 OTHER THAN FROM THE UNITED STATES

640 

641 

642 

643 

644 

645 

646 

647 

648 

649 

650 

651 

652 

653 

17. (a) Omitted. 

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

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

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

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

necessary, consistent with the following provisions: 

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

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

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

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

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

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

paying the necessary charges therefore. 

 (2) Delivery of such non-Project water in and through Project facilities 
Contract No. 14-06-200-3474A-IR1 

27

654 

655 

656 

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

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

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

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

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

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

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

law. Provided further

657 

658 

659 

660 

, that the United States has determined that the delivery of non-Project water in 

and through Project facilities pursuant to Warren Act Contract No. 02-WC-20-2217 between the 

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

future, satisfies the requirements of this Article. 

661 

662 

663 

664 

665 

666 

667 

668 

669 

670 

671 

672 

673 

674 

675 

676 

677 

678 

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

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

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

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

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

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

such non-Project water into Project facilities. 

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

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

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

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

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

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

non-Project water prior to any such remaining capacity being made available to non-Project 
Contract No. 14-06-200-3474A-IR1 

28

679 

680 

Contractors. 
Contract No. 14-06-200-3474A-IR1 

29

681 

682 OPINIONS AND DETERMINATIONS

683 

684 

685 

686 

687 

688 

689 

690 

691 

692 

693 

694 

695 

696 

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

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

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

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

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

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

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

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

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

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

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

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

Secretary. Such determinations shall be made in consultation with the Contractor to the extent 

reasonably practicable. 

697 COORDINATION AND COOPERATION

698 

699 

700 

701 

702 

703 

704 

705 

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

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

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

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

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

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

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

shall extend to all provisions of this Contract. Each party shall retain exclusive decision making 
Contract No. 14-06-200-3474A-IR1 

30

706 

707 

708 

709 

710 

711 

712 

713 

714 

715 

716 

717 

718 

719 

720 

721 

722 

723 

724 

725 

726 

727 

728 

729 

730 

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

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

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

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

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

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

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

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

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

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

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

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

improve water supply, water quality, and reliability. 

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

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

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

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

California to seek improved water resource management. 

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

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

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

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

activities, and other issues as appropriate. 

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

the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 
Contract No. 14-06-200-3474A-IR1 

31

731 

732 

733 

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

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

the physical integrity of structures or facilities. 

734 CHARGES FOR DELINQUENT PAYMENTS

735 

736 

737 

738 

739 

740 

741 

742 

743 

744 

745 

746 

747 

748 

749 

750 

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

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

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

When a payment becomes 60 days delinquent, the Contractor shall pay an administrative charge to 

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

delinquent 90 days or more, the Contractor shall pay an additional penalty charge of six percent per 

year for each day the payment is delinquent beyond the due date. Further, the Contractor shall pay 

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

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

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

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

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

remain fixed for the duration of the delinquent period. 

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

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

accrued interest, and finally to the overdue payment. 

751 EQUAL OPPORTUNITY

752 

753 

754 

755 

756 

757 

758 

759 

760 

761 

762 

763 

764 

765 

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

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

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

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

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

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

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

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

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

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

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

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

employment without discrimination because of race, color, religion, sex, or national origin. 
Contract No. 14-06-200-3474A-IR1 

32

766 

767 

768 

769 

770 

771 

772 

773 

774 

775 

776 

777 

778 

779 

780 

781 

782 

783 

784 

785 

786 

787 

788 

789 

790 

791 

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

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

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

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

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

employment. 

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

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

of Labor. 

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

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

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

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

regulations, and orders. 

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

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

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

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

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

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

by law. 

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

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

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

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

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

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

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

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

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

792 

793 

794 

795 

796 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

797 

798 

799 

800 

801 

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

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

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

water users in their obligations to the Contractor. 

 (b) The payment of charges becoming due hereunder is a condition precedent to 
Contract No. 14-06-200-3474A-IR1 

33

802 

803 

804 

805 

806 

807 

808 

809 

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

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

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

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

payment of water rates levied or established by the Contractor. 

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

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

810 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

811 

812 

813 

814 

815 

816 

817 

818 

819 

820 

821 

822 

823 

824 

825 

826 

827 

828 

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

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

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

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

Department of the Interior and/or Bureau of Reclamation. 

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

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

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

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

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

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

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

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

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

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

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

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

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

829 PRIVACY ACT COMPLIANCE

830 24. Omitted. 

831 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

832 

833 

834 

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

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

detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 
Contract No. 14-06-200-3474A-IR1 

34

835 

836 

837 

838 

839 

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

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

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

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

administration. 

840 WATER CONSERVATION

841 

842 

843 

844 

845 

846 

847 

848 

849 

850 

851 

852 

853 

854 

855 

856 

857 

858 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

thereafter the Contractor immediately begins implementing its water conservation and efficiency 

program in accordance with the time schedules therein.

 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 
Contract No. 14-06-200-3474A-IR1 

35

859 

860 

861 

862 

863 

864 

865 

866 

867 

868 

869 

870 

871 

872 

873 

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

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

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

Officer to be inappropriate for the Contractor. 

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

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

conservation and efficiency criteria established under Federal law. 

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

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

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

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

conservation plan meets the Bureau of Reclamation’s then-current conservation and efficiency 

criteria for evaluating water conservation plans established under Federal law. 

 (e) If the Contractor is engaged in direct ground-water recharge, such activity 

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

874 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

875 

876 

877 

878 

879 

880 

881 

882 

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

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

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

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

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

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

Reclamation law. 
Contract No. 14-06-200-3474A-IR1 

36

883 

884 OPERATION AND MAINTENANCE BY THE OPERATING NON-FEDERAL ENTITY

885 28. Omitted. 

886 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

887 

888 

889 

890 

891 

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

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

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

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

or allotted. 

892 BOOKS, RECORDS, AND REPORTS

893 

894 

895 

896 

897 

898 

899 

900 

901 

902 

903 

904 

905 

906 

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

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

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

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

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

may require. Subject to applicable Federal laws and regulations, each party to this Contract shall 

have the right during office hours to examine and make copies of the other party's books and records 

relating to matters covered by this Contract. 

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

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

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

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

to provide the requested books, records, or information. 

 (c) Omitted. 

907 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

908 

909 

910 

911 

912 

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

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

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

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

interfere with the rights or obligations of the other party to this Contract absent the written 
Contract No. 14-06-200-3474A-IR1 

37

913 

914 

915 

concurrence of said other party. 

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

of any proposed assignment. 

916 SEVERABILITY

917 

918 

919 

920 

921 

922 

923 

924 

925 

926 

927 

928 

929 

930 

931 

932 

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

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

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

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

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

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

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

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

decision identify by mutual agreement the provisions in this Contract which must be revised and 

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

specified above may be extended by mutual agreement of the parties. Pending the completion of the 

actions designated above, to the extent it can do so without violating any applicable provisions of 

law, the United States shall continue to make the quantities of Project Water specified in this 

Contract 

available to the Contractor pursuant to the provisions of this Contract which were not found to be 

legally invalid or unenforceable in the final court decision. 

933 RESOLUTION OF DISPUTES

934 

935 

936 

937 

33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

any matter to Department of Justice, the party shall provide to the other party 30-days’ written notice 
Contract No. 14-06-200-3474A-IR1 

38

of the intent to take such action; Provided, That such notice shall not be required where a delay in 

commencing an action would prejudice the interests of the party that intends to file suit. During the 

30-day notice period, the Contractor and the Contracting Officer shall meet and confer in an attempt 

938 

939 

940 

941 

942 

to resolve the dispute. Except as specifically provided, nothing herein is intended to waive or abridge 

any right or remedy that the Contractor or the United States may have. 

943 OFFICIALS NOT TO BENEFIT

944 

945 

946 

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

Contractor shall benefit from this Contract other than as a water user or landowner in the same 

manner as other water users or landowners. 

947 CHANGES IN CONTRACTOR’S SERVICE AREA

948 

949 

950 

951 

952 

953 

954 

955 

956 

957 

958 

959 

960 

35. (a) While this Contract is in effect, no change may be made in the Contractor's 

Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

except upon the Contracting Officer's written consent. 

 (b) Within 30 days of receipt of a request for such a change, the Contracting 

Officer will notify the Contractor of any additional information required by the Contracting Officer 

for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

timely completion of the process. Such process will analyze whether the proposed change is likely 

to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability of 

the Contractor to pay for Project Water furnished under this Contract or to pay for any Federallyconstructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply with 

NEPA and ESA. The Contractor will be responsible for all costs incurred by the Contracting Officer 

in this process, and such costs will be paid in accordance with Article 25 of this Contract. 

961 FEDERAL LAWS

962 

963 

36. By entering into this Contract, the Contractor does not waive its rights to contest the 

validity or application in connection with the performance of the terms and conditions of this 

964 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 
Contract No. 14-06-200-3474A-IR1 

39

965 

966 

967 

terms and conditions of this Contract unless and until relief from application of such Federal law or 

regulation to the implementing provision of the Contract is granted by a court of competent 

jurisdiction. 

968 NOTICES

969 

970 

971 

972 

973 

974 

975 

37. Any notice, demand, or request authorized or required by this Contract shall be 

deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 

to the Area Manager, Bureau of Reclamation, 7794 Folsom Dam Road, Folsom, California 95630-

1799, and on behalf of the United States, when mailed, postage prepaid, or delivered to the City 

Council of the City of Roseville, 2005 Hilltop Circle, Roseville, California 95747. The designation 

of the addressee or the address may be changed by notice given in the same manner as provided in 

this Article for other notices. 

976 CONFIRMATION OF CONTRACT

977 

978 

979 

980 

981 

38. The Contractor, after the execution of this Contract, shall furnish to the Contracting 

Officer evidence that pursuant to the laws of the State of California, the Contractor is a legally 

constituted entity and the Contract is lawful, valid, and binding on the Contractor. This Contract 

shall not be binding on the United States until such evidence has been provided to the Contracting 

Officer’s satisfaction. 

982 CONTRACT DRAFTING CONSIDERATIONS

983 

984 

985 

986 

39 This Contract has been, negotiated and reviewed by the parties hereto, each of whom 

is sophisticated in the matters to which this Contract pertains. Articles 1 through 39 of the contract 

have been drafted, negotiated, and reviewed by the parties, and no one party shall be considered to 

have drafted the stated articles. 

 
Contract No. 14-06-200-3474A-IR1 

40

987 

988 

989 

990 

991 

992 

993 

994 

995 

996 

997 

998 

999 

 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day 

and year first above written. 

Approved as to legal sufficiency. THE UNITED STATES OF AMERICA 

By: ____________________________ By: ___________________________________ 

 Regional Director, Mid-Pacific Region 

 Bureau of Reclamation 

(SEAL) 

Approved as to form. THE CITY OF ROSEVILLE 

By: _____________________________ By: ___________________________________ 

City Attorney City Manager 

Attest: 

By: _______________________________ 

 City Clerk 
EXHIBIT A

[Map or Description of Service Area] 
EXHIBIT B

2011 Rates and Charges

(Placeholder)