HomeMy WebLinkAboutReso 94-314 - Authorize entering into a contract with the Bureau of Reclamation, to superside Contract No. 14-06-200-5272A dated 02-22-71 providing water service RESOLUTION NO. 94-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING ENTERING INTO A CONTRACT WITH THE BUREAU OF
RECLAMATION, TO SUPERSEDE CONTRACT NO. 14-06-200-5272A
DATED 2/22/71, PROVIDING FOR WATER SERVICE.
WHEREAS, the City of Redding entered into Water Service
Contract No. 14-06-200-5272A dated February 22 , 1971 , to provide
a municipal and industrial water supply from the Sacramento River
or the 6-inch pipeline originating from the Toyon Pipeline to
that portion of the City known as the Buckeye Area; and
WHEREAS, said Contract has been amended from time-to-time;
and
WHEREAS, the parties wish to enter into the attached amended
contract, to supersede the contract dated February 22, 1971, as
amended, to add an additional point of diversion on the Project
Spring Creek Power Conduit to facilitate delivery of water to the
proposed Buckeye Water Treatment Plant;
NOW, THEREFORE, IT IS HEREBY RESOLVED that the Council
hereby authorizes:
1. the City of Redding entering into the attached Contract
with the United States Department of the Interior,
Bureau of Reclamation, Central Valley Project;
2. the Mayor of the City of Redding to sign the necessary
documentation, upon form approval by the City Attorney,
on behalf of the City of Redding; and
3 . the City Clerk to attest the signature of the Mayor and
impress the official seal of the City of Redding
thereto.
I HEREBY CERTIFY that the foregoing Resolution pertaining to
the amended contract with the Bureau of Reclamation to provide
RESCINDED BY PESO 94-327
for water service was introduced, read, and adopted at a regular
meeting of the City Council on the 1st day of November, 1994, by
the following vote:
AYES: COUNCIL MEMBERS: P. Anderson, Kehoe, McGeorge, Murray and R. Anderson
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
OBERT C. ANDERSON, Mayor
City of Redding
ATTEST:
i
CONNIE STROHMAYER, Ci Clerk
FORM PPROVED:
RAN ALL A. HAYS, City Attorney
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S.O. Draft 06/25-1993
R.O. Draft 07/19-1993
Rev. R.O. 08/02-1993
Rev. R.O. 11/22-1993
Rev. R.O. 11/24-1993
Rev. R.O. 01/09-1994
Rev. N.C. 05/16-1994
Rev. N.C. 06/09-1994
Rev. N.C. 06/17-1994
Contract No.
14-06-200-5272A
Amendatory
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
Central Valley Project, California
AMENDATORY CONTRACT BETWEEN THE UNITED STATES OF AMERICA
AND CITY OF REDDING PROVIDING FOR WATER SERVICE
Table of Contents
Article No. Page No.
Preamble 1
Explanatory Recitals 1-3
1 Definitions 3-6
2 Term of Contract--Beneficial Use 6
3 Water to be Furnished to the Contractor--Resale 6-8
4 Water Schedules 8-9
5 Rates and Method of Payment for Water 9-12
6 Adjustments 12-13
7 Use of the 6-Inch Pipeline 13
8 O&M and Ownership of the 6-Inch Pipeline--United
States to be Held Harmless 13-16
9 Work Requested by Contractor
Relating to Project Works 16
10 Points of Delivery 17
11 Measurement and Responsibility for Distribution of Water 17-18
12 Measurement for the Conservation of Water 19
13 Temporary Reductions 19-20
14 Return Flow 20
15 United States not Liable for Water Shortage--
Apportionment 20-23
16 O&M and Ownership of Toyon Pipeline 23
17 Water Wheeling Through 6-Inch Pipeline 23-24
18 Place of Use--Transfers or Exchanges of Water 24
19 Quality of Water 24-25
20 Water and Air Pollution Control 25
21 Hazardous Material 25-26
22 General Obligation--Benefits Conditioned Upon Payment 26
23 Charges for Delinquent Payments 26-27
24 Books, Records and Reports 27
25 Contingent on Appropriation or Allotment of Funds 27
26 Officials not to Benefit 27
27 Changes in Contractor's Service Area 28
28 Assignment Limited--Successors and Assigns Obligated 28
29 Rules, Regulations, and Determinations 28
30 Equal Opportunity 28-30
31 Water Conservation 30-31
32 Compliance with Civil Rights Laws and Regulations 31-32
33 Notices 32
Signature Page 33
Exhibit A
Exhibit B
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S.O. Draft 06/25-1993
R.O. Draft 07/19-1993
Rev. R.O. 08/02-1993
Rev. R.O. 11/22-1993
Rev. R.O. 11/24-1993
Rev. R.O. 01/09-1994
Rev. N.C. 05/16-1994
Rev. N.C. 06/09-1994
Rev. N.C. 06/17-1994
Contract No.
14-06-200-5272A
Amendatory
1 UNITED STATES
2 DEPARTMENT OF THE INTERIOR
3 BUREAU OF RECLAMATION
4 Central Valley Project, California
5 AMENDATORY CONTRACT BETWEEN THE UNITED STATES OF AMERICA
6 AND CITY OF REDDING PROVIDING FOR WATER SERVICE
7 THIS AMENDATORY CONTRACT, made this day of ,
8 1994, in pursuance generally of the Act of June 17, 1902 (32 Stat. 388), and acts
9 amendatory thereof or supplementary thereto, including but not limited to the Acts of
10 August 26, 1937 (50 Stat. 844), as amended and supplemented, August 4, 1939 (53 Stat.
11 1187), as amended and supplemented, October 12, 1982 (96 Stat. 1263), as amended,
12 October 27, 1986 (100 Stat. 3050), as amended, and the Act of October 30, 1992 (106
13 Stat. 4706), all collectively hereinafter referred to as the Federal Reclamation laws,
14 between THE UNITED STATES OF AMERICA, hereinafter referred to as the United
15 States, and the CITY OF REDDING, hereinafter referred to as the Contractor, an
16 incorporated City of the State of California, duly organized, existing, and acting pursuant
17 to the laws thereof,
18 WITNESSETH, That:
Rev. N.C. 06/17-1994
1 EXPLANATORY RECITALS
2 WHEREAS, the United States has constructed and is operating the
3 Central Valley Project, California, hereinafter referred to as the Project, for the purpose,
4 among others, of furnishing water for irrigation, municipal, industrial, domestic, and
5 other beneficial uses; and
6 WHEREAS, on December 18, 1951, the United States and the Buckeye
7 County Water District entered into Contract No. 175r-3927, which was subsequently
8 amended on various occasions; and
9 WHEREAS, in 1967 the Buckeye County Water District was dissolved and
10 Contract No. 175r-3927, as amended, was assigned to the Contractor; and
11 WHEREAS, the Contractor and the United States have entered into a
12 Contract, No. 14-06-200-5272A, dated February 22, 1971, as amended on January 10,
13 1990, which provided a municipal and industrial water supply from the Sacramento River
14 or the 6-Inch Pipeline originating from the Toyon Pipeline to that portion of the
15 Contractor known as the Buckeye Service Area; and
16 WHEREAS, the Contractor has requested to add an additional point of
17 diversion on the Project Spring Creek Power Conduit to facilitate delivery of water to
18 the Contractor's proposed Buckeye water treatment plant, and the United States is
19 willing to add the additional point of diversion, and update the contract to comply with
20 Federal laws, regulations and policies; and
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1 WHEREAS, the water diverted from the Spring Creek Power Conduit by
2 the Contractor will not be available to pass through the Project's hydroelectric generators
3 at Spring Creek or Keswick Powerplants, which will result in losses of electricity
4 generated by the Project; and as such the Contractor is willing to compensate the United
5 States for such electricity losses through an agreement with the Western Area Power
6 Administration, Department of Energy, for any foregone generation based on the terms
7 of that agreement; and
8 WHEREAS, Title XXXIV of Public Law No. 102-575 (106 Stat. 4706)
9 requires changes in certain provisions included in this contract;
10 NOW, THEREFORE, in consideration of the mutual covenants herein
11 contained, it is agreed as follows:
12 DEFINITIONS
13 1. When used herein, unless otherwise distinctly expressed or manifestly
14 incompatible with the intent hereof, the terms:
15 (a) "Charges" shall mean the payments in addition to the Rates
16 determined annually by the Contracting Officer, including but not limited to, the
17 payments required by Section 3407 of Title XXXIV of Public Law 102-575; and
18 (b) "Delivered Water" shall mean Project water made available by the
19 Contracting Officer and diverted to the Contractor at approved point(s) of
20 delivery; and
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1 (c) "Meter Vault" shall mean the Project's concrete box containing
2 pipelines, meters, and valves located on the 6-Inch Pipeline about 3/4 mile south
3 of the intersection of Lake Boulevard and Shasta Dam Boulevard as shown on
4 Exhibit A, attached hereto and made a part hereof; and
5 (d) "Municipal, Industrial, and Domestic", hereinafter referred to as
6 "M&I", shall mean all uses of Project water for other than the commercial
7 production of agricultural crops or livestock, including domestic use incidental
8 thereto; and
9 (e) "M&I Full Cost Rate" shall mean the annual rate, which, as
10 determined by the Secretary, shall amortize the expenditures for construction
11 allocable to Project M&I facilities in service, including all operation and O&M
12 deficits funded, less payments, over such periods as may be required under
13 Federal Reclamation law or applicable contract provisions, with interest on both
14 accruing from the dates such costs were first incurred plus the applicable rate for
15 the O&M of such Project facilities; and
16 (f) "New Facilities" shall mean the Contractor's proposed Buckeye
17 Water Treatment Plant, to be constructed on land leased from the United States,
18 near the Spring Creek Power Conduit, connected to an existing water distribution
19 system in the Service Area (northwest sector of the City); and
20 (g) "O&M" shall mean normal and reasonable care, control, operation,
21 repair, replacement, and maintenance; and
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1 (h) 'Project Works" shall mean all those facilities defined in subsections
2 (c), (n), and (q) of this Article; and
3 (i) "Rates" shall mean the payments determined annually by the
4 Contracting Officer in accordance with the then current ratesetting policies of the
5 Project; and
6 0) "Reclamation" shall mean the United States, Bureau of
7 Reclamation; and
8 (k) "Secretary" or "Contracting Officer" shall mean the Secretary of the
9 Interior or his duly authorized representative; and
10 (1) "Service Area" shall mean the Contractor's Buckeye Water Service
11 Area, as shown on Exhibit A; and
12 (m) "Spring Creek Power Conduit" shall mean the Project's conveyance
13 conduit, running from Whiskeytown Lake to Spring Creek Powerplant on
14 Keswick Lake; and
15 (n) "Toyon Pipeline" shall mean the Project's 16-Inch Pipeline which
16 originates from the left abutment of Shasta Dam and runs to the section line
17 between Sections 23 and 26 of Township 33 North, Range 5 West, as shown on
18 Exhibit A of this contract; and
19 (o) "Western" shall mean the Western Area Power Administration,
20 United States, Department of Energy; and
21 (p) "Year" shall mean the period from and including March 1
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1 of each calendar year through the last day of February of the following calendar
2 year; and
3 (q) "6-Inch Pipeline" shall mean the Project's pipeline, or the
4 Contractor's parallel replacement pipeline in those areas where use of the
5 Project's pipeline has been discontinued, originating at the north boundary of
6 Section 26 through Section 35 in Township 33 North, Range 5 West, to a storage
7 tank, in Section 2 of Township 32 North, Range 5 West, as generally shown on
8 Exhibit A, and extending south to the north boundary of Section 11, Township 32
9 North, Range 5 West.
10 TERM OF CONTRACT--BENEFICIAL USE
11 2. (a) This amendatory contract shall be effective the 1st day of the month
12 after the date of its execution and shall remain in effect through December 31, 2009:
13 Provided, That under terms and conditions agreeable to the parties, this amendatory
14 contract may be renewed for successive periods of up to twenty-five (25) Years each.
15 The terms and conditions of each renewal contract shall be agreed upon within a
16 reasonable time prior to the expiration of the then existing contract.
17 (b) This amendatory contract, hereinafter referred to as the Contract,
18 shall supersede Contract No. 14-06-200-5272A, dated February 22, 1971.
19 WATER TO BE FURNISHED TO THE CONTRACTOR--RESALE
20 3. (a) From the effective date of this contract through February 28, 1995,
21 the United States shall make available to the Contractor, subject to Articles 13 and 15,
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1 up to 6,140 acre-feet of Project water, less the amount of Delivered Water already
2 furnished to the Contractor, from March 1, 1994, and the Contractor shall pay for the
3 quantities specified in its schedule submitted in accordance with Article 4(a).
4 (b) Commencing March 1, 1995, the United States shall make available
5 to the Contractor each Year, subject to Articles 13 and 15, up to 6,140 acre-feet of
6 Project water and the Contractor shall pay for the quantities specified in its schedule(s)
7 submitted in accordance with Article 4.
8 (c) The Contractor shall take delivery of Project water at point or
9 points of delivery agreed upon pursuant to Article 10 herein: Provided, That in no event
10 shall the United States be obligated to furnish Project water from Shasta Reservoir at
11 the Meter Vault on the 6-Inch Pipeline in excess of 40 acre-feet per Year: Provided
12 further, That the Contractor's entitlement to take Project water from Shasta Reservoir at
13 the Meter Vault on the 6-Inch Pipeline shall terminate 12 months after the Contracting
14 Officer provides written notice to the Contractor that the capacity of the upstream Toyon
15 Pipeline is needed by the United States for other Project purposes: Provided further,
16 That the Contractor shall continue to perform all duties required by Article 8 of this
17 contract through the effective date of the termination.
18 (d) Water furnished by the United States under this contract shall be.
19 used by the Contractor only for M&I purposes.
20 (e) In the event the Contractor in any Year requires a quantity of
21 Project water in addition to the maximum quantity which the United States is obligated
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1 to furnish to the Contractor, such additional water, if available, as determined by the
2 Contracting Officer, may be furnished upon receipt from the Contractor of a written
3 notice requesting such additional water together with a schedule indicating the desired
4 times and quantities and payment for such water at the appropriate Rates and Charges
5 described in Article 5 hereof: Provided, That the diversion by the Contractor of such
6 additional quantities of water shall neither entitle nor obligate the Contractor to divert
7 such quantities in subsequent Years.
8 (f) Water furnished to the Contractor pursuant to this contact shall not
9 be used by the Contractor for power production (hydro-electric generation) unless such is
10 incidental to water delivery to individual customers for consumptive use and is so used
11 with the concurrence of Reclamation.
12 (g) Water furnished to the Contractor pursuant to this contract shall be
13 considered and accounted for separate and apart from the water furnished to the
14 Contractor under Contract No. 14-06-200-2871A, dated May 31, 1966, between the
15 United States and the Contractor.
16 WATER SCHEDULES
17 4. (a) Upon execution of this contract, the Contractor shall submit a
18 written schedule to the Contracting Officer indicating the times, quantities and point(s)
19 of diversion of all Project water to be delivered to the Contractor pursuant to this
20 contract during the remaining months of the current Year.
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1 (b) Before March 1 of each Year, and at such other times as necessary,
2 the Contractor shall submit to the Contracting Officer, a written schedule, satisfactory to
3 the Contracting Officer, showing the times, quantities, and point(s) of diversion of
4 Project water to be furnished by the United States to the Contractor pursuant to this
5 contract, during the upcoming Year.
6 (c) Subject to the conditions set forth in Article 3(b), the United States
7 shall furnish Project water to the Contractor in accordance with the initial schedule
8 submitted by the Contractor pursuant to subdivision (b) above, or any revision(s) thereto
9 submitted within a reasonable time prior to the date(s) on which the requested change(s)
10 is/are to be implemented.
11 RATES AND METHOD OF PAYMENT FOR WATER
12 5. (a) The Contractor shall pay the United States in monthly payments as
13 provided in this Article for the quantities of Delivered Water furnished to the Contractor
14 pursuant to this contract. Such payments shall consist of the applicable Rates and
15 Charges determined annually in accordance with applicable Federal law and associated
16 regulations. The Rates and Charges applicable upon execution of this contract are set
17 forth in Exhibit B.
18 (b) The Contracting Officer shall notify the Contractor of the
19 preliminary and/or final Charges, as early as available, for the period October 1 of the
20 current calendar year through September 30, of the following calendar year, and such
21 final notification shall revise Exhibit "B".
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1 (c) The Contracting Officer shall provide the Contractor an estimate of
2 the Rates of payment, as early as available, for the following Year and the computations
3 and cost allocations upon which those Rates are based. The Contractor shall be allowed
4 not less than two months to review and comment on such computations and cost
5 allocations. The Contracting Officer shall notify the Contractor of the final Rates to be
6 in effect for the upcoming Year, and such notification shall revise Exhibit "B".
7 (d) The Contractor shall pay the United States, in monthly payments as
8 provided herein, for the quantities of Delivered Water furnished to the Contractor
9 during the Year, all at the Rate(s) and Charges established pursuant to subdivision (a) of
10 this Article and the following Rate structure:
11 (1) The quantity of Project water up to and including 80 percent of
12 Contractor's maximum contractual Project water entitlement specified in Article
13 3(a) shall be paid for by the Contractor at the applicable cost of service Rate
14 specified in Exhibit B;
15 (2) The quantity of Project water in excess of 80 percent and up to
16 and including 90 percent of the Contractor's maximum contractual Project water
17 entitlement specified in Article 3(a) shall be paid for by the Contractor at the
18 Rate equal to the average of the otherwise applicable cost of service Rate
19 specified in Exhibit B and the applicable M&I Full Cost Rate.
20 (3) The quantity of Project water in excess of 90 percent of the
21 Contractor's maximum contractual Project water entitlement specified in Article
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1 3(a) shall be paid for by the Contractor at the applicable M&I Full Cost Rate.
2 (e) At the time the Contractor submits the initial schedule to the
3 Contracting Officer pursuant to Article 4(a) of this contract, the Contractor shall pay the
4 United States the total amount payable for all water scheduled to be delivered and/or
5 diverted pursuant to this contract during the first two (2) calendar months of the
6 remainder of the current Year. Before the end of the first calendar month or part
7 thereof of that Year, and before the end of each month thereafter, the Contractor shall
8 pay for all water delivered and/or diverted in accordance with its latest schedule during
9 the second calendar month immediately following. Adjustments between the payments
10 for the scheduled amounts of water and the appropriate payments for quantities of water
11 actually delivered and/or diverted each month shall be made by the last day of the
12 following month: Provided, That any revised schedule submitted by the Contractor
13 pursuant to Article 4 which increases the Contractor's water deliveries shall be
14 accompanied by payment for such additional water to assure water is not delivered
15 and/or diverted in advance of payment. In any calendar month in which the quantity of
16 water delivered and/or diverted to the Contractor equals the quantity of water scheduled
17 and paid for by the Contractor, no additional water shall be delivered and/or diverted to
18 the Contractor unless and until payment is made for such additional water. Final
19 adjustment between the payments for the Project water scheduled and the quantities of
20 Delivered Water during each Year pursuant to this contract shall be made by March 31,
21 of the following Year.
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1 (f) The Contractor shall pay all Charges owing for Delivered Water
2 before the end of the month following the month of delivery. Such amounts shall be
3 consistent with the quantities of M&I water shown in the United States' water delivery
4 report for the subject month. The water delivery report shall be regarded by the
5 Contractor as a bill for payment of appropriate Charges. Any monthly adjustment for
6 overpayment or underpayment of Charges shall be accomplished through the adjustment
7 of Charges due to the United States in the next month. By March 31 of each calendar
8 year, the Contractor shall make any additional payment of Charges it is obligated to
9 make for Delivered Water furnished to the Contractor in the prior Year pursuant to this
10 contract. The amount to be paid for past due payment of Charges shall be computed
11 pursuant to Article 23 of this contract.
12 ADJUSTMENTS
13 6. If there is furnished by reason of a shortage, apportionment,
14 discontinuance, or reduction of service less than the quantity of water which the
15 Contractor otherwise would be entitled to receive, the amount of any overpayment by
16 the Contractor shall be applied first to any accrued indebtedness due and payable to the
17 United States arising out of this contract. The amount of any overpayment then
18 remaining shall, at the option of the Contractor, be refunded to the Contractor or
19 credited upon amounts to become due to the United States from the Contractor under
20 this contract in the ensuring Year. Such adjustment shall constitute the sole remedy of
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1 the Contractor or anyone having or claiming to have the right to the use of any of the
2 water supply provided for herein.
3 USE OF THE 6-INCH PIPELINE
4 7. The Contractor may take Project water from the 6-Inch Pipeline pursuant
5 to the terms and limitations of subdivision (c) of Article 3 of this contract; use the 6-Inch
6 Pipeline for approved water transfers in accordance with of Article 18 of this contract;
7 and provide for pressurized deliveries of Project water through the 6-Inch Pipeline to the
8 Service Area pursuant to this contract.
9 O&M AND OWNERSHIP OF THE
10 6-INCH PIPELINE--UNITED STATES TO BE HELD HARMLESS
11 8. (a) The Contractor at its own expense shall O&M the 6-Inch Pipeline
12 as identified on Exhibit A of this contract to the extent reasonably necessary to keep that
13 Project facility operating in a satisfactory manner. By letter agreement, including
14 provision for reimbursement by the Contractor of all costs incurred by the United States,
15 the Contractor may be relieved of its responsibilities to O&M one or more sections of
16 the 6-Inch Pipeline and Exhibit A shall be modified accordingly. Such relief, however,
17 does not relieve the Contractor from maintaining the United States ability to transport
18 water from the Meter Vault to the southernmost terminus of the 6-Inch Pipeline.
19 (b) Unless otherwise provided by the Congress of the United States,
20 ownership of the 6-Inch Pipeline shall remain in the name of the United States.
21 (c) No liability shall accrue against the United States, its officers, and
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1 employees because of damage caused by O&M of the 6-Inch Pipeline by the Contractor.
2 The Contractor hereby releases the United States and agrees to indemnify it from all
3 damage claims that may result from such O&M.
4 (d) From time to time the Contracting Officer, may make a review of
5 maintenance of the 6-Inch Pipeline in order to assist the Contractor in determining the
6 condition of those facilities and the adequacy of the maintenance program. The review
7 may include any or all of the 6-Inch Pipeline. A report of the review, including
8 recommendations, if any, shall be prepared and copies shall be furnished to the
9 Contractor. If deemed necessary by the Contracting Officer or when requested by the
10 Contractor, an inspection of all or part of the 6-Inch Pipeline and of the Contractor's
11 books and records relating thereto may be made to ascertain whether the requirements
12 of this contract are being satisfactorily performed by the Contractor or to assist the
13 Contractor in solving specific problems. Any such inspection shall, except in a case of
14 emergency, be made after written notice to the Contractor and the actual cost thereof
15 shall be paid by the Contractor to the United States in the manner provided in Article 9
16 hereof. Contractor representatives may participate in the review or inspection. In the
17 event such inspection reveals that the 6-Inch Pipeline is in need of repair reasonably
18 necessary to keep the line operating in a satisfactory manner, in the conclusive opinion
19 of the Contracting Officer, and the Contractor neglects or fails to make such repairs but
20 retains its desire to continue to take water from the Meter Vault, the United States may
21 cause the repairs to be made and charge the costs thereof to the Contractor. The
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1 Contractor shall pay the full amount of the costs of any such inspection and/or repairs to
2 the United States on or before March 1 following the calendar year during which the
3 costs of such inspection and/or repairs were incurred.
4 (e) If any time the Contracting Officer determines that the Contractor
5 has not cared for, operated, or maintained the 6-Inch Pipeline or Delivered Water
6 pursuant to the terms of this contract, the Contracting Officer may send notice to the
7 Contractor specifying the cause(s) thereof and requiring their remedy within 60 days. If
8 such cause(s) is (are) not remedied to the satisfaction of the Contracting Officer within
9 that 60 day period, the United States may take back and operate and maintain the 6-
10 Inch Pipeline. The cost of the care, operation, and maintenance of the 6-Inch Pipeline,
11 during the time of their O&M by the United States, shall be paid in advance by the
12 Contractor on the basis of estimates for a particular calendar year, or portion thereof,
13 furnished to it by the United States. The surplus of any amount advanced by the
14 Contractor in excess of the actual cost of O&M by the United States, as shown in the
15 statement of such actual cost furnished by the United States, shall be refunded to the
16 Contractor or at option of the Contractor credited upon estimated future costs of O&M
17 by the United States. Whenever in the opinion of the Contracting Officer the funds
18 available from payments made by the Contractor to pay the estimated O&M costs are
19 inadequate to properly maintain the 6-Inch Pipeline to the end of any calendar year, the
20 Contracting Officer may give to the Contractor notice of a supplemental O&M charge
21 stating the additional advance of funds required for such O&M and the Contractor shall
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1 pay the amount thereof on or before the date specified in such notice. The 6-Inch
2 Pipeline so taken back by the United States may be retransferred to the Contractor upon
3 the furnishing to the Contractor by the United States of a 90-day written notice of
4 intention to retransfer.
5 (f) In no event shall any substantial change be made by the Contractor
6 to the 6-Inch Pipeline without first obtaining the written consent of the Contracting
7 Officer. The Contracting Officer's opinion as to whether any change is substantial shall
8 be conclusive and binding on the Contractor.
9 WORK REQUESTED BY CONTRACTOR
10 RELATING TO PROJECT WORKS
11 9. In addition to all other payments to be made by the Contractor under this
12 contract, the Contractor shall repay to the United States, within sixty (60) days after
13 receipt of a bill and detailed statement submitted by the Contracting Officer to the
14 Contractor for such specific items of direct cost incurred by the United States for work
15 requested by the Contractor. The costs shall be those normally charged by the United
16 States plus a percentage of such direct costs for administrative and general overhead in
17 accordance with applicable Reclamation policy.and procedures. The conditions of such
18 items of work shall be mutually agreed upon prior to the United States incurring any
19 costs.
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1 POINTS OF DELIVERY
2 10. The water to be furnished to the Contractor pursuant to this contract shall
3 be diverted at the Meter Vault on the 6-Inch Pipeline, from the Spring Creek Power
4 Conduit at the New Facilities, the existing point or points of delivery from the
5 Sacramento River below Keswick Dam and/or any points as may be mutually agreed
6 upon in writing.
7 MEASUREMENT AND RESPONSIBILITY FOR DISTRIBUTION OF WATER
8 11. (a) All water delivered to the Contractor pursuant to this contract at
9 any point or points of delivery, including backwash water used for cleaning the filters of
10 the New Facilities, shall be measured by the Contractor with measuring equipment or
11 devices satisfactory to the Contracting Officer installed and maintained by the Contractor
12 at its own expense. Such measuring equipment or devices shall be installed at the point
13 of diversion or at points where such water enters the Service Area as delineated in
14 Exhibit A. At least once each year or upon the request of the Contracting Officer, the
15 Contractor shall investigate the accuracy of all measuring equipment or devices at the
16 point(s) of delivery identified in Article 10 of this contract. The United States shall be
17 afforded reasonable opportunity to have its representatives present during the inspection
18 and testing procedure by the Contractor and shall have full and free access at all
19 reasonable times to inspect said measuring equipment or devices for the purpose of
20 determining the accuracy and condition thereof. If said measurement equipment or
21 devices are found to be defective or inaccurate they shall be repaired, or replaced by the
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1 Contractor. In the event the Contractor neglects or fails to make such repairs or
2 replacements within a reasonable time as may be necessary to satisfy the operating
3 requirements of the Contracting Officer, the United States may cause the repairs or
4 replacements to be made and the costs thereof charged to the Contractor, which charge
5 the Contractor shall pay to the United States on or before March 1 of the calendar year
6 following that in which the cost was incurred and a billing was thereof furnished by the
7 United States. Adjustments in billing may, at the discretion of the Contracting Officer,
8 be made to compensate for meter inaccuracies.
9 (b) A computation of the total quantity of water delivered each month
10 by the Contractor shall be furnished to the Contracting Officer on or before the seventh
11 day of the following month or at other times upon request of the Contracting Officer.
12 (c) The United States shall not be responsible for the control, carriage,
13 handling, use, disposal, or distribution of water which may be furnished to the Contractor
14 pursuant to this contract beyond the delivery points established in Article 10 of this
15 contract, nor for claim of damage of any nature whatsoever including, but not limited to,
16 property damage, personal injury, or death arising out of or connected with the control,
17 carriage, handling, use, disposal, or distribution of such water beyond the point or points
18 of delivery.
19 (d) The Contractor shall inform, in writing, the Contracting Officer and
20 the State of California annually as to the monthly volume of surface water delivered for
21 use within its Service Area.
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1 MEASUREMENT FOR THE CONSERVATION OF WATER
2 12. (a) Upon execution of this contract, the Contractor shall ensure that all
3 water delivered shall be measured at each M&I service connection with water measuring
4 devices or water measuring methods of comparable effectiveness acceptable to the
5 Contracting Officer. The Contractor shall be responsible for installing, operating,
6 maintaining, and repairing all measurement devices or water measuring methods at no
7 cost to the United States. The Contractor shall use the information obtained from these
8 measuring devices or water measuring methods to record water deliveries by customer
9 class as defined in their water conservation plan. The Contractor shall submit a
10 summary of water delivered according to customer class to the Contracting Officer with
11 the annual report as described in Article 31.
12 (b) All new surface water delivery systems installed within the Contractor's
13 Service Area after the effective date of this contract shall also comply with the
14 measurement provisions described in subdivision (a) of this Article.
15 (c) If the water measuring devices or water measuring methods of
16 comparable effectiveness as identified in subdivisions (a) and (b) of this Article are not
17 implemented as determined by the Contracting Officer, no further interim or long-term
18 renewal contracts will be executed.
19 TEMPORARY REDUCTIONS
20 13. The United States may temporarily discontinue or reduce the quantity of
21 water to be furnished to the Contractor pursuant to this contract, as herein provided, for
19
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1 the purpose of investigation, inspection, maintenance, modification repair, or
2 replacement of any of the Project facilities or any part thereof necessary for the
3 furnishing of water to the Contractor, so far as feasible the Contracting Officer will give
4 the Contractor due notice in advance of such temporary discontinuance or reduction,
5 except in case of emergency, in which case no notice need be given.
6 RETURN FLOW
7 14. The United States reserves the right to all water derived from water
8 delivered to the Contractor pursuant to this contract which escapes or is discharged
9 beyond the Service Area.
10 UNITED STATES NOT LIABLE FOR WATER SHORTAGE--APPORTIONMENT
11 15. (a) The United States shall use all reasonable means in its operation
12 and management of the Project to make full supplies of Project water specified in this
13 contract available to the Contractor during each Year. If, nevertheless, the United
14 States is unable to make such full supplies available to the Contractor in any Year on
15 account of drought, errors in operation, or other causes which the Contracting Officer
16 has determined are beyond the control of the United States, the Contractor shall hold
17 the United States, its officers, agents and employees harmless from any and all liability
18 and/or damages arising therefrom.
19 (b) During any Year in which the Contracting Officer determines that
20 the United States will be unable to make the full supply of Project water specified in this
21 contract available to the Contractor, the Contracting Officer shall, to the extent
20
Rev. N.C. 06/17-1994
1 permitted by applicable law and existing contracts, declare that a water shortage exists
2 and the basis for the shortage, and shall apportion the available Project water among the
3 water users of the Project by reducing the quantities of Project water made available to
4 such users: Provided, That no reduction shall be made to M&I water made available to
5 the Contractor unless and until reductions have also been imposed on irrigation users
6 receiving water from the integrated Project water supply, irrespective of water allocations
7 as determined by the Contracting Officer made to prevent undue hardship: and
8 Provided Further, That in no Year of shortage shall the Contracting Officer reduce the
9 quantity of M&I water made available to the Contractor by more than 25 percent of
10 historical use, as defined in subdivision (d) of this Article, unless the type of water
11 shortage emergency condition described in subdivision (e) of this Article exists. The,
12 quantity of Project water made available to the Contractor shall be determined in
13 accordance with the following subdivisions of this Article.
14 (c) Regulatory Restrictions. During any Year in which the Contracting
15 Officer determines that the United States will be unable to provide the full supply of
16 Project water specified in this contract, and the basis of that determination is regulatory
17 restrictions on the delivery of Project water to the Contractor, the minimum amount of
18 water the Contracting Officer will make available to the Contractor for M&I use shall be
19 the gfeatef ef 75 pefeent of eafitfaet entitlefnent, of 85 percent of historical use, as
20 defined below.
21
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1 (d) Water Shortages. During any Year in which the Contracting Officer
2 determines that the United States will be unable to provide the fully supply of Project
3 water specified in this contract, and the basis of this determination is a shortage of water,
4 the quantity of water the Contracting Officer will make available to the Contractor for
5 M&I use shall be a percentage, of historical use, as defined below. The amount of water
6 made available to the Contractor for M&I use pursuant to this subdivision shall not be
7 less that 75 percent of historical use. Historical use shall be the average quantity of
8 Project water put to beneficial use within the Service Area during the last three years of
9 water deliveries not affected by water shortages adjusted for growth.
10 (e) Minimum Public Health. During any Year in which the Contracting
11 Officer determines that the United States will be unable to provide the full supply of
12 Project water specified in this contract to the Contractor, and the basis of that
13 determination is that the Project water supply is so severe that shortages beyond those in
14 subdivision (b) are deemed necessary for Project M&I users, the Contracting Officer
15 shall declare that a state of water shortage emergency exists with respect to water
16 available to M&I users. A state of water shortage emergency shall not be declared for
17 M&I users unless Project agricultural water users' allocation is being established on a
18 case-by-case basis for sustaining the life of trees and vines. During a water shortage
19 emergency, M&I water service contractor allocations, including the Contractor, shall be
20 sufficient to satisfy public health and safety requirements, as calculated by the
21 Contractor, pursuant to its then current water shortage contingency plan.
22
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1 (f) Upon filing of the Record of Decision associated with the
2 environmental documentation mandated by Section 3409 of P.L. 102-575, or upon the
3 passage of five years from the execution of this contract, whichever is earlier in time, the
4 Contractor and the Contracting Officer shall renegotiate the provisions of this Article.
5 The renegotiation of this Article will be for the purpose of modifying this Article
6 consistent with the then existing Project shortage policy.
7 O&M AND OWNERSHIP OF TOYON PIPELINE
8 16. (a) In the event the United States transfers O&M, or O&M and
9 ownership of the Toyon Pipeline or portions thereof, to a non-Federal entity, including
10 the Contractor, this contract shall be revised as needed by a letter agreement to conform
11 with the terms and conditions of such transfer: Provided, That the United States shall
12 consult with the Contractor prior to entering into any such O&M, or O&M and
13 ownership agreement with the non-Federal entity.
14 (b) Unless otherwise provided by the Congress of the United States,
15 ownership of the Toyon Pipeline shall remain in the name of the United States.
16 WATER WHEELING THROUGH 6-INCH PIPELINE
17 17. If capacity is available in the 6-Inch Pipeline, in excess of that required to
18 wheel water from Shasta Reservoir to the Contractor, and upon request of the United
19 States, the Contractor shall wheel Project water allocated to. and paid for by other
20 Federal contractors through the 6-Inch Pipeline for use in areas adjacent to the 6-Inch
21 Pipeline but outside the Service Area. Prior to the conveyance of any such water, the
23
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1 Federal contractors benefiting from such wheeling shall be required to have an approved
2 executed agreement with the Contractor which provides for reimbursement of all
3 reasonable O&M costs incurred by the Contractor arising from such wheeling and an
4 approved method of independent measurement of water wheeled by the Contractor.
5 When applicable, the total water conveyed by the Contractor will be reduced by this
6 amount. Any and all such agreements shall be approved by the Contracting Officer.
7 PLACE OF USE - TRANSFERS OR EXCHANGES OF WATER
8 18. The Contractor may sell, transfer or exchange the right to receive the
9 Project water provided for in this contract for beneficial uses within the State of
10 California if, as determined by the Contracting Officer, such sale, transfer or exchange
11 would be consistent with applicable Federal and State laws and regulations then in
12 effect. No sale, transfer or exchange of the right to receive water under this contract
13 may take place without the prior written approval of the Contracting Officer.
14 QUALITY OF WATER
15 19. The operation and maintenance of Project facilities shall be performed in
16 such manner as is practicable to maintain the quality of raw water made available
17 through such facilities at the highest level reasonably attainable as determined by the
18 Contracting Officer. The United States does not warrant the quality of water and is
19 under no obligation to construct or furnish water treatment facilities to maintain or
20 better the quality of water. The Contractor shall be responsible for compliance with all
21 applicable State and Federal water quality standards applicable to surface and subsurface
24
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1 agricultural drainage discharges generated through the use of Federal or Contractor
2 facilities or Project water provided by the Contractor within its boundaries. Nothing in
3 this section shall affect or alter any legal obligation of the Secretary to provide drainage
4 services.
5 WATER AND AIR POLLUTION CONTROL
6 20. The Contractor, in carrying out this contract, shall comply with all
7 applicable water and air pollution laws and regulations of the United States and the
8 State of California, and shall obtain all required permits or licenses from the appropriate
9 Federal, State, or local authorities.
10 HAZARDOUS MATERIAL
11 21. (a) The Contractor shall comply with all applicable Federal, State, and
12 local laws and regulations, and Reclamation polices and instructions, existing or hereafter
13 enacted or promulgated, concerning any hazardous material that will be used, produced,
14 transported, stored or disposed of on or in lands, waters or facilities, owned by the
15 United States or administered by Reclamation.
16 (b) "Hazardous material" means any substance, pollutant or contaminant
17 listed as hazardous under the Comprehensive Environmental Response, Compensation,
18 and Liability Action of 1980, as amended, 42, U.S.C. 1901, et sea., and the regulations
19 promulgated pursuant to that Act.
20 (c) The Contractor may not allow contamination of lands, waters, or
21 facilities owned by the United States or administered by Reclamation by hazardous
22 materials, thermal pollution, refuse, garbage, sewage effluent, industrial waste, petroleum
23 products, mine tailings, mineral salts, pesticides (including, but not limited to, the misuse
24 of pesticides, pesticide containers or any other pollutants).
25 (d) The Contractor shall report to Reclamation, within 12 hours of its
26 occurrence, any event which may or does result in pollution or contamination adversely
27 affecting lands, water or facilities owned by the United States or administered by
28 Reclamation.
25
Rev. N.C. 06/17-1994
1 (e) Violation of any of the provisions of this Article shall constitute
2 grounds for immediate termination of this contract. Furthermore, such violations shall
3 make the Contractor liable for the cost of full and complete remediation and/or
4 restoration of any Federal, governmental, or private resources or facilities that are
5 adversely affected as a result of the violation.
6 (f) The Contractor agrees to include the provision contained in
7 paragraphs (a) through (e) of this Article in any subcontract or third party contract it
8 may enter into pursuant to this contract.
9 (g) Reclamation agrees to provide information necessary for the
10 Contractor, using reasonable diligence, to comply with the provision of this Article.
11 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT
12 22. (a) The obligation of the Contractor to pay the United States as
13 provided in this contract is a general obligation of the Contractor notwithstanding the
14 manner in which the obligation may be distributed among the Contractor's water users
15 and notwithstanding the default of individual water users in their obligations to the
16 Contractor.
17 (b) The payment of charges becoming due hereunder is a condition
18 precedent to receiving benefits under this contract. The United States shall not make
19 water available to the Contractor through Project facilities during any period in which
20 the Contractor may be in arrears in the advance payment of water rates or any operation
21 and maintenance charges due the United States. The Contractor shall not furnish water
22 made available pursuant to this contract for lands or parties which are in arrears in the
23 advance payment of water rates, or operation and maintenance charges levied or
24 established by the Contractor.
25 CHARGES FOR DELINQUENT PAYMENTS
26 23. (a) The Contractor shall be subject to interest, administrative and
27 penalty charges on delinquent installments or payments. When a payment is not
28 received by the due date, the Contractor shall pay an interest charge for each day the
29 payment is delinquent beyond the due date. When a payment becomes 60 days
30 delinquent, the Contractor shall pay an administrative charge to cover additional costs of
31 billing and processing the delinquent payment. When a payment is delinquent 90 days or
32 more, the Contractor shall pay an additional penalty charge of 6 percent per year for
33 each day the payment is delinquent beyond the due date. Further, the Contractor shall
34 pay any fees incurred for debt collection services associated with a delinquent payment.
26
Rev. N.C. 06/17-1994
1 (b) The interest charge rate shall be the greater of the rate prescribed
2 quarterly in the Federal Re ,'ster by the Department of the Treasury for application to
3 overdue payments, or the interest rate of 0.5 percent per month prescribed by Section 6
4 of the Reclamation Project Act of 1939 (Public Law 76-260). The interest charge rate
5 shall be determined as of the due date and remain fixed for the duration of the
6 delinquent period.
7 (c) When a partial payment on a delinquent account is received, the
8 amount received shall be applied, first to the penalty, second to the administrative
9 charges, third to the accrued interest, and finally to the overdue payment.
10 BOOKS, RECORDS AND REPORTS
11 24. The Contractor shall establish and maintain accounts and other books and
12 records pertaining to administration of the terms and conditions of this contract,
13 including: the Contractor's financial transactions, water supply data, Project operation,
14 maintenance and replacement logs, and Project land and right-of-way use agreements;
15 and water-use data; and other matters that the Contracting Officer may require. Reports
16 thereon shall be furnished to the Contracting Officer in such form and on such date or
17 dates as the Contracting Officer may require. Subject to applicable Federal laws and
18 regulations, each party to this contract shall have the right during office hours to
19 examine and make copies of the other party's books and records relating to matters
20 covered by this contract.
21 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS
22 25. The expenditure or advance of any money or the performance of any
23 obligation of the United States under this contract shall be contingent upon
24 appropriation or allotment of funds. Absence of appropriation or allotment of funds
25 shall not relieve the Contractor from any obligations under this contract. No liability
26 shall accrue to the United States in case funds are not appropriated or allotted.
27 OFFICIALS NOT TO BENEFIT
28 26. No Member of, or Delegate to Congress, Resident Commissioner, or
29 official of the Contractor shall benefit from this contract other than as a water user or
30 landowner in the same manner as other water users or landowners.
27
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1 CHANGES IN CONTRACTOR'S SERVICE AREA
2 27. While this contract is in effect, no change may be made in the Contractor's
3 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger or
4 otherwise, except upon the Contracting Officer's written consent.
5 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED
6 28. The provisions of this contract shall apply to and bind the successors and
7 assigns of the parties hereto, but no assignment or transfer of this contract or any right
8 or interest therein shall be valid until approved in writing by the Contracting Officer.
9 RULES REGULATIONS. AND DETERMINATIONS
10 29. (a) The parties agree that the delivery of water or the use of Federal
11 facilities pursuant to this contract is subject to Reclamation law, as amended and
12 supplemented, and the rules and regulations promulgated by the Secretary of the Interior
13 under Reclamation law.
14 (b) The Contracting Officer shall have the right to make determinations
15 necessary to administer this contract that are consistent with the expressed and implied
16 provisions of this contract, the laws of the United States and the State, and the rules and
17 regulations promulgated by the Secretary of the Interior. Such determinations shall be
18 made in consultation with the Contractor.
19 EQUAL OPPORTUNITY
20 30. During the performance of this contract, the Contractor agrees as follows:
21 (1) The Contractor will not discriminate against any employee or
22 applicant for employment because of race, color, religion, sex, or national
23 origin. The Contractor will take affirmative action to ensure that
24 applicants are employed, and that employees are treated during
25 employment, without regard to their race, color, religion, sex, or national
26 origin. Such action shall include, but not be limited to, the following:
27 Employment, upgrading, demotion, or transfer; recruitment or recruitment
28 advertising; layoff or termination; rates of pay or other forms of
29 compensation; and selection for training, including apprenticeship. The
30 Contractor agrees to post in conspicuous places, available to employees
31 and applicants for employment, notices to be provided by the Contracting
32 Officer setting forth the provisions of this nondiscrimination clause.
28
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1 (2) The Contractor will, in all solicitations or advertisements for
2 employees placed by or on behalf of the Contractor, state that all qualified
3 applicants will receive consideration for employment without discrimination
4 because of race, color, religion, sex, or national origin.
5 (3) The Contractor will send to each labor union or representative of
6 workers with which it has a collective bargaining agreement or other
7 contract or understanding, a notice, to be provided by the Contracting
8 Officer, advising the said labor union or workers' representative of the
9 Contractor's commitments under Section 202 of Executive Order 11246 of
10 September 24, 1965, and shall post copies of the notice in conspicuous
11 places available to employees and applicants for employment.
12 (4) The Contractor will comply with all provisions of Executive Order
13 No. 11246 of September 24, 1965, as amended, and of the rules,
14 regulations, and relevant orders of the Secretary of Labor.
15 (5) The Contractor will furnish all information and reports required by
16 said amended Executive Order and by the rules, regulations, and orders of
17 the Secretary of Labor, or pursuant thereto, and will permit access to its
18 books, records, and accounts by the Contracting Officer and the Secretary
19 of Labor for purposes of investigation to ascertain compliance with such
20 rules, regulations, and orders.
21 (6) In the event of the Contractor's noncompliance with the
22 nondiscrimination clauses of this contract or with any of the said rules,
23 regulations, or orders, this contract may be canceled, terminated, or
24 suspended, in whole or in part, and the Contractor may be declared
25 ineligible for further Government contracts in accordance with procedures
26 authorized in said amended Executive Order, and such other sanctions may
27 be imposed and remedies invoked as provided in said Executive Order, or
28 by rule, regulation, or order of the Secretary of Labor, or as otherwise
29 provided by law.
30 (7) The Contractor will include the provisions of paragraphs (1) through
31 (7) in every subcontract or purchase order unless exempted by the rules,
32 regulations, or orders of the Secretary of Labor issued pursuant to Section
33 204 of said amended Executive Order, so that such provisions will be
34 binding upon each subcontractor or vendor. The Contractor will take such
35 action with respect to any subcontract or purchase order as may be
36 directed by the Secretary of Labor as a means of enforcing such provisions,
29
Rev. N.C. 06/17-1994
1 including sanctions for noncompliance: Provided, however, That in the
2 event the Contractor becomes involved in, or is threatened with, litigation
3 with a subcontractor or vendor as a result of such direction, the Contractor
4 may request the United States to enter into such litigation to protect the
5 interests of the United States.
6 WATER CONSERVATION
7 31. (a) The Contractor shall develop and implement an effective water
8 conservation program based on the Contractor's water conservation plan that has been
9 reviewed by the Contracting officer and determined to meet the conservation and
10 efficiency criteria established under Federal law. The water conservation program shall
11 contain definite water conservation objectives, appropriate economically feasible water
12 conservation measures, and time schedules for meeting those objectives.
13 (b) The Contractor shall submit to the Contracting Officer by December
14 31, of each calendar year a report on the status of the Contractor's implementation of its
15 water conservation program.
16 (c) At 3-year intervals, subsequent to the Contracting Officer's
17 determination that the Contractor's water conservation program meets the conservation
18 and efficiency criteria established under Federal law, the Contractor shall submit to the
19 Contracting Officer for review and evaluation updated water conservation programs.
20 The Contracting Office shall review and evaluate the updated water conservation
21 program and determine if they meet the conservation and efficiency criteria established
22 under Federal law.
30
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1 (d) Continued Project water delivery pursuant to this contract shall be
2 contingent upon the Contractor's continued implementation of a water conservation
3 program that meets the conservation and efficiency criteria established under Federal
4 law.
5 (e) The Contracting Officer shall review and approve Best Management
6 Practices identified subsequent to the execution of this contract by the California Urban
7 Water Conservation Council. Upon written notification by the Contracting Officer, the
8 Contractor shall implement such Best Management Practices within the time frames
9 issued by the Contracting Officer.
10 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS
11 32. (a) The Contractor shall comply with Title VI of the Civil Rights Act of
12 1964 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1973 (P.L. 93-112, as
13 amended), the Age Discrimination Act of 1975 (42 U.S.C. 6101, et sea.) and any other
14 applicable civil rights laws, as well as their respective implementing regulations and
15 guidelines imposed by the U.S. Department of the Interior and/or Bureau of
16 Reclamation.
17 (b) These statutes require that no person in the United States shall, on
18 the grounds of race, color, national origin, handicap, or age, be excluded from
19 participation in, be denied the benefits of, or be otherwise subjected to discrimination
20 under any program or activity receiving financial assistance from the Bureau of
21 Reclamation. By executing this contract, the Contractor agrees to immediately take any
22 measures necessary to implement this obligation, including permitting officials of the
23 United States to inspect premises, programs, and documents.
24 (c) The Contractor makes this agreement in consideration of and for
25 the purpose of obtaining any and all Federal grants, loans, contracts, property discounts
26 or other Federal financial assistance extended after the date hereof to the Contractor by
27 the Bureau of Reclamation, including installment payments after such date on account of
28 arrangements for Federal financial assistance which were approved before such date.
29 The Contractor recognizes and agrees that such Federal assistance will be extended in
31
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1 reliance on the representations and agreements made in this Article, and that the United
2 States reserves the right to seek judicial enforcement thereof.
3 NOTICES
4 33. Any notice, demand, or request authorized or required by this contract
5 shall be deemed to have been given, on behalf of the Contractor, when mailed, postage
6 prepaid, or delivered to the Area Manager, Bureau of Reclamation, Northern California
7 Area Office, 16349 Shasta Dam Boulevard, Shasta Lake, California 96019-8400, and on
8 behalf of the United States, when mailed, postage prepaid, or delivered to the City
9 Mayor, City of Redding, 760 Parkview Avenue, Redding CA 96001. The designation of
10 the addressee or the address may be changed by notice given in the same manner as
11 provided in this Article for other notices.
32
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1 IN WITNESS WHEREOF, the parties hereto have executed this contract
2 as of the day and year first above written.
3 THE UNITED STATES OF AMERICA
4 By
5 Regional Director, Mid-Pacific Region
6 Bureau of Reclamation
7
8 CITY OF REDDING
9 (SEAL)
10 By
11 Mayor
12 Attest:
13
14 City Clerk
15
33
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1 EXHIBIT B
2 1994 M&I Water Rates for Amendatory Contract No. 14-06-200-5272A
3 City of Redding
4
5 Spring
6 Sacramento Creek Toyon
7 River Conduit Pipeline
8
9 COST OF SERVICE RATE PER AF
10 Capital Rate $5.90 $6.82 1/
11
12 O&M Rates
13 Water Marketing 1.31 1.31 1.31
14 Storage 3.31 3.31 3.31
15 Conveyance -- -- 7.70
16
17 Deficit Rate .11 .54
18 TOTAL COST OF SERVICE RATE JLQ.63 11.44 12.86
19
20 M&I FULL COST RATES PER AF ILL73 12.86
21 SURCHARGES (PER AF) UNDER P.L. 102-575 TO RESTORATION FUND
22 Restoration Payments (3407(d)(2)(A)) $12.40 $12.40 $12.40
23
24 1/ Application of the City's revenues for Project water delivered through the Toyon
25 Pipeline has resulted in an accumulated net surplus balance which exceeds their
26 allocation of total Project capital costs. Consequently, the City's annually calculated
27 M&I cost-of-service water rate is less than the Project's minimum rate. Therefore, the
28 minimum rate, which is the higher of: (1) a rate of $9.00 per acre-foot, or (2) a rate
29 equal to the-O&M costs (including recovery of historic O&M deficits) for delivering
30 Project M&I water to the contractors's designated point of diversion, will be the
31 applicable rate to be paid for this water.
34