HomeMy WebLinkAboutReso 97-162 - Approving entering the Binding Agreement for Early Renewal No 14-06-200-5272A-BA Between the US Dept of Interior, Bureau of Reclamation (Central Valley Project, Calif) and The COR '� , � �
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RESOLUTION NO. 9�-/�v
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING APPROVING ENTERING INTO BINDING AGREEMENT
FOR EARLY RENEWAL NO. 14-06-200-5272A-BA BETWEEN THE
UNITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF
RECLAMATION (CENTRAL VALLEY PROJECT, CALIFORNIA), AND
THE CITY OF REDDING.
WHEREAS, on February 22, 1971, the United States Department of the Interior,
Bureau of Reclamation ("United States"), and the City of Redding ("Contractor") entered into
Contract No. 14-06-200-5272A ("Existing Central Valley Project [CVP] Contract") which
provides CVP water service to the Contractor through December 31, 2009; and
WHEREAS, Section 3404(c)(1) of the Central Valley Project Improvement Act
("CVPIA") provides that no long-term renewals of CVP water service contracts shall be
authorized until appropriate environmental review, including the preparation of the
environmental impact statement required in Section 3409 of the CVPIA, has been completed;
and
WHEREAS, Section 3404(c)(3) of the CVPIA requires the Secretary of the Interior
("Secretary") to impose on existing CVP long-term contractors whose contracts were in
existence on October 30, 1992, and had not been renewed between January 1, 1988, and
October 29, 1992, an additional mitigation and restoration payment of one and one-half times
the annual mitigation and restoration payment calculated under Section 3407(d) of the CVPIA
for every year starting October 1, 1997, or January 1 of the calendar year following the year
in which the programmatic environmental impact statement ("PEIS") required under section
3409 of the CVPIA is completed, whichever is sooner, and ending on the effective date of the
renewal contract; and
WHEREAS, Section 3404(c)(3) of the CVPIA provides further that in the event the
PEIS required by Section 3409 of the CVPIA is not completed by October 1, 1997, the \
additional mitigation and restoration payment shall not apply to any holder of a long-term CVP ��
contract in existence on the date of enactment of the CVPIA (i.e., October 30, 1992) who �
enters into a binding agreement with the Secretary prior to October 1, 1997, to renew its CVP �
contract immediately upon completion of the PEIS, if such contract has not expired prior to '
the completion of the PEIS; and �
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WHEREAS, it is in the best interests of the Contractar to enter into such a binding �
agreement;
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NOW, THEREFORE, BE IT RESOLVED by the City Council that the Mayor is
authorized to execute on behalf of the City of Redding Binding Agreement for Early Renewal
No. 14-06-200-5272A-BA between the United States Department of the Interior, Bureau of
Reclamation, and the City of Redding, a copy of which is attached and made a part hereof by
reference. This agreement states that the Existing CVP Contract shall remain in full force and
effect through its current expiration date during the term of the Binding Agreement for Early
Renewal unless and until the Existing CVP Contract is renewed early pursuant to Article 3 of
the Binding Agreement for Early Renewal.
BE IT FURTHER RESOLVED that the City Clerk is directed to attest the signature
of the Mayor and affix the corporate seal of the City of Redding to the Binding Agreement for
Early Renewal.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted
at a regular meeting of the City Council on the l6tn day of September , 1997, by the
following vote:
AYES: COLTNCIL MEMBERS: R. Anderson, Kehoe, McGeorge and Murray
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: P. Anderson
ABSTAIN: COUNCIL MEMBERS: None
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PATRICIA A. ANDERSON, Mayor
Attest: Fonn Approved:
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'����:�r/!.%G��:i,. y°��
Connie Stro mayer, City er W. Leonard Winga , 'ty Attorney
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1 Rev. R.O. Draft 09/20/96
2 Rev. R.O. Draft 10/20/96
3 Rev. R.O. Draft 10/30/96
4 • Rev. R.O. Draft 10/31/96
5 Rev. R.O. Draft 11/O1/96
6 Rev. R.O. Draft 11/21/96
7 Rev. R.O. Draft 12/09/96
g Rev. R.O. Draft 12/10/96
9 Rev. R.O. Draft 12/12/96
10 Rev. R.O. Draft 08/18/97
11 Rev. R.O. Draft 08/19/97
12 Rev. R.O. Draft 08/26/97
13 (Binding Agreement for
14 Early Contract Renewal)
15 Binding Agreement No.
16 14-06-200-5272A-BA
17 LTI�tITED STATES
18 DEPARTMENT OF THE INTERIOR
19 BUREAU OF RECLAMATION
20 Central Valley Project, California
21 BINDING AGREEMENT FOR EARLY RENEWAL
22 BETWEEN THE UNITED STATES
23 AND
24 CITY OF REDDING
25 Table of Contents
26 Article No. Title Pa�e No.
27 Preamble 1
28 Explanatory Recitals 1-3
29 1 Type of Agreement 3
30 2 Term of the Agreement 3
31 3 Agreement to Renew Contract 3-4
32 4 Additional Mitigation and Restoration Payments 4-6
33 5 Charges for Delinquent Payments 6-7
34 6 Compliance with Reclamation Laws 7
35 7 General Obligation -- Benefits Conditioned Upon Payment 7
36 8 Contingent on Appropriation or Allotment of Funds 7
37 9 Notices 8
38 Signature Page 8
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1 LJNITED STATES
2 DEPARTMENT OF THE INTERIOR
3 BUREAU OF RECLAMATION
4 Central Valley Project, California
5 BINDING AGREEMENT FOR EARLY RENEWAL
6 BETWEEN THE IJNITED STATES
7 AND
8 CITY OF REDDING
9 THIS AGREEMENT, made this day of � , 19_, pursuant to
10 Section 3404(c)(3) of the Central Valley Project Improvement Act (Title XX��IV of Public
11 Law 102-575, October 30, 1992; 106 Stat. 4600), between THE tTNITED STATES OF
12 AMERICA, hereinafter referred to as the�United States, represented by the officer executing
13 this Agreement, hereinafter referred to as the Contracting Officer, and CITY OF REDDING,
14 hereinafter referred to as the Contractor;
15 WITNESSETH, That:
16 EXPLANATORY RECITALS
17 WHEREAS, on February 22, 1971, the United States and the Contractor
18 entered into Contract No. 14-06-200-5272A, hereinafter referred to as the "Existing Central
19 Valley Project (CVP) Contract," which provides CVP water service to the Contractor through
20 December 31, 2009; and
21 WHEREAS, Section 3404(c)(1) of the Central Val.ley Project Improvement Act
22 (hereinafter referred to as CVPIA) provides that no long-term renewals of CVP water service
23 contracts shall be authorized until appropriate environmental review, including the preparation
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� � 1 of the environmental impact statement required in Section 3409 of the CVPIA, has been
2 completed; and
3 WHEREAS, Section 3404(c)(3) of the CVPIA requires the Secretary of the
4 Interior(Secretary) to impose on existing Central Valley Project long-term contractors whose .
5 contracts were in existence on October 30, 1992, and had not been renewed between
6 January 1, 1988, and October 29, 1992, an additional mitigation and restoration payment of
7 one and one-half times the annual mitigation and restoration payment calculated under
8 Section 3407(d) of the CVPIA for every year starting October 1, 1997, or January 1 of the
9 calendar year following the year in which the programmatic environmental impact statement
10 ("PEIS") required under Section 3409 of the CVPIA is completed, whichever is sooner, and
11 ending on the effective date of the renewal contract; and
12 WHEREAS, Section 3404(c)(3) of the CVPIA provides further that in the event
13 the PEIS required by Section 3409 of the CVPIA is not completed by October 1, 1997, the
14 additional mitigation and restoration payment shall not apply to any holder of a long-term CVP
15 contract in existence on the date of enactment of the CVPIA (i.e., October 30, 1992) who
16 enters into a binding agreement with the Secretary prior to October l, 1997, to renew its CVP
17 contract immediately upon completion of the PEIS, if such contract has not expired prior to
18 the completion of the PEIS; and
19 WHEREAS, the Contractor has requested to enter into such a binding
20 agreement;
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� 1 NOW, THEREFORE, in consideration of the mutual covenants herein
2 contained, the parties agree as follows:
3 TYPE OF AGREEMENT
4 l. This Agreement constitutes a binding agreement pursuant to Section 3404(c)(3) .
5 of the CVPIA.
6 TERNI OF THE AGREEMENT
7 2. This Agreement shall become effective upon the date hereinabove written and
8 shall remain in effect until it is fully performed by both parties. The Existing CVP Contract
9 between the United States and the Contractor shall remain in full force and effect through its
10 current expiration date during the term of this Agreement unless and until the Existing CVP
11 Contract is renewed early pursuant to Article 3 of this Agreement.
12 AGREEMENT TO RENEW CONTRACT
13 3. (a) The Contracting Officer shall notify the Contractor, in writing, of the
14 date on which the PEIS described in Section 3409 of the CVPIA has been completed, as
15 determined by the Contracting Officer. At the same time, the Contracting Officer shall notify
16 the Contractor, in writing, of the date on which the United States and the Contractor shall
17 commence negotiations of the long-term renewal contract to replace the Existing CVP
18 Contract. The Contractor and the United States shall commence negotiations on said date or
19 such later date as mutually agreed by the parties.
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�� 1 (b) The negotiation of the long-term renewal contract shall be completed as
2 promptly as possible.
3 (c) The Contractor shall execute such long-term renewal contract
4 immediately following the date on which the Contracting Officer notifies the Contractor, in .
5 writing, that all appropriate environmental documentation for such renewal contract has been
6 completed.
7 ADDITIONAL MITIGATION AND RESTORATION PAYMENTS
8 4. (a) Subject to the exception described in Article 4 (b) below, the
9 Contractor shall not be required to pay the additional mitigation and restoration payment
10 described in Section 3404(c}(3) of the CVPIA.
11 (b) If the Contractor and the Contracting Officer have not executed a
12 long-term renewal contract to replace the Existing CVP Contract immediately following the
13 date on which the Contracting Officer notifies the Contractor, in writing, of the completion of
14 all appropriate environmental documentation, the Contracting Officer shall notify the
15 Contractor in writing that the Contractor shall be:
16 (1) Deemed relieved of its commitment to renew its Existing CVP Contract
17 pursuant to Article 3 of this Agreement.
18 (2) Deemed subject to and required to make the additional mitigation and
19 restoration payments described in Section 3404(c)(3) of the CVPIA
20 commencing October 1, 1997, through the date on which the Contracting
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1 Officer notifies the Contractor, in writing, that the Contractor is deemed
2 relieved of its commitment to renew its Existing CVP Contract pursuant to
3 Article 4(b)(1) ofthis Agreement.
4 (3) Deemed subject to and required to make the additional mitigation and
5 restoration payments described in Section 3404(c)(3) of the CVPIA
6 commencing on the date on which the Contracting Officer notifies the
7 Contractor, in writing, that the Contractor is deemed relieved of its commitment
8 to renew its Existing CVP Contract pursuant to Article 4(b)(1) of this
9 Agreement through the date on which the Contractor and the United States
10 enter into a long-term renewal contract, or the date on which the Existing CVP
11 Contract expires, whichever is earlier; Provided, That such payments shall be
12 made to the United States at the same time the mitigation and restoration
13 payments required by Section 3407(d)(2)(A) of the CVPIA are remitted to the
14 United States.
15 (4) Required to pay the United States interest on all such additional
16 mitigation and restoration payments due between the date on which the
17 Contracting Officer notifies the Contractor, in writing, as required in Article
18 3(c) of this Agreement that all appropriate environmental documentation has
19 been completed, and the date on which the Contracting Officer notifies the
20 Contractor, in writing, that the contractor is deemed relieved of its commitment
21 to renew its Existing CVP Contract early in accordance with Article 4(b)(1) of
22 this Agreement. Such interest shall be calculated in accordance with Article 5
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' 1 of this Agreement, and the "due date" referred to in Article 5 shall be the earlier
2 of the two dates described in the preceding sentence.
3 (5) Required to reimburse the United States for the administrative costs
4 incurred by the United States to negotiate and prepare the documentation .
5 necessary to enable the United States to renew the Contractor's Existing CVP
6 Contract early pursuant to Article 3 of this Agreement. Said administrative
7 costs shall include, but not be limited to, all costs of negotiation, preparation,
8 and development of an appropriate renewal contract for execution by the
9 Contractor and all costs of preparation of the associated site-specific
10 environmental documentation for such a contract, less the amount(s) of such
11 costs which have been advanced or previously paid, if any, by the Contractor.
12 (6) Required to pay all costs incurred by the United States to determine the
13 amount(s) described in subdivisions (2), (4), and (5) of this Article.
14 The Contracting Officer shall bill the Contractor for the payment of the amount(s) described in
I S subdivisions (2), (4), (5), and (6) of this Article. Said amount(s) shall be paid by the Contractor
16 to the United States within thirty (30) days of receipt of such bill(s).
17 CHARGES FOR DELINOUENT PAYMENTS
18 5. (a) The Contractor shall be subject to interest, administrative, and penalty
19 charges on delinquent installments or payments. When a payment is not received by the due
20 date, the Contracfor shall pay an interest charge for each day the payment is delinquent beyond
21 the due date. When a payment becomes 60 days delinquent, the Contractor shall pay an
22 administrative charge to cover additional costs of billing and processing the delinquent
23 payment. When a payment is delinquent 90 days or more, the Contractor shall pay an
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' 1 additional penalty charge of 6 percent per year for each day the payment is delinquent beyond
2 the due date. Further, the Contractor shall pay any fees incurred for debt collection services
3 associated with a delinquent payment.
4 (b) The interest charge rate shall be the greater of the rate�p�����nlb��l
5 quarterly in the Federal Register by the Department of the Treasury for application to overdue
6 payments, or the interest rate of 0.5 percent per month prescribed by Section 6 of the .
7 Reclamation Project Act of 1939 (Public Law 76-260). The interest charge rate shall be
8 determined as of the due date and remain fixed for the duration of the delinquent period.
9 (c) When a partial payment on a delinquent account amount received shall
10 be applied, first to the penalty, second to the administrative charges, third to the accrued
11 interest, and finally to the overdue payment.
12 COMPLIANCE WITH RECLAMATION LAWS
13 6. This Agreement shall be implemented in accordance with all applicable
14 provisions of Reclamation Law, as amended and supplemented.
15 GENERAI, OBLIGATION--BENEFITS
16 CONDITIONED UPON PAYMENT
17 7. (a) The obligation of the'Contractor to pay the United States as provided in
18 this Agreement is a general obligation of the Contractor notwithstanding the manner in which
19 the obligation may be distributed among the Contractor's water users and notwithstanding the
20 default of individual water users in their obligations to the Contractor.
21 (b) The payment of charges becoming due hereunder is a condition
22 precedent to receiving benefits under this Agreement.
23 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS
24 8. The expenditure or advance of any money or the performance of any o6ligation
25 of the United States under this Agreement shall be contingent upon appropriation or allotment
26 of funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from
27 any obligations under this Agreement. No liability shall accrue to the United States in case
28 funds are not appropriated or allotted.
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1 NOTICES
2 9. Any notice, demand, declaration, or request authorized or required by this ,
3 Agreement shall be deemed to have been given, on behalf of the Contractor, when mailed,
4 postage prepaid, or delivered to the Area Manager, Northern California Area Office, 16349
5 Shasta Dam Boulevard, Shasta Lake CA 96019-8400, and on behalf of the United States when
6 mailed, postage prepaid, or delivered to the City Council of the City of Redding, 760 Parkview �
7 Avenue, Redding CA 96001. The designation of the addressee or the address may be changed
8 by notice given in the same manner as provided in this article for other notices.
9 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
10 of the day and year first above written.
11 THE LTNITED STATES OF AMERICA
12 DEPARTMENT OF THE 1NTERIOR
13 By
14 Regional Director, Mid-Pacific Region
15 Bureau of Reclamation
16 (SEAL)
17 CITY OF REDDING
18 By
19 Title
20 ATTEST:
21
22 Secretary
23 (Bindagt.fin)
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