Through this Lower Methow Implementation contract, MSRF will complete preliminary actions in the floodplain at Site 1 to allow for future implementation of the habitat project designed under previous contracts (88463, 90824).  The Lower Methow Project was selected based on landowner willingness and habitat uplift potential from the prioritized list in the Lower Methow Reach Assessment (LMRA) funded by BPA. The project area includes two adjacent action areas (Site 1 and Site 2) where MSRF has engaged landowners to allow access for design and implementation of a single restoration action intended to restore natural processes interrupted by past levee placement and historic development. The objective of this contract is to relocate multiple irrigation/domestic wells out of the floodplain to allow for future construction of the floodplain connection project at Site 1 under a future BPA contract.

The Lower Methow project is located in the lowest segment of the Methow River evaluated in the LMRA between RM 1.4 and 2.5.  This area provides steelhead spawning habitat and is the migratory corridor for every adult spring Chinook and steelhead returning to the sub-basin. The Lower Methow is also the last area in the Methow used by rearing Chinook and steelhead juveniles prior to out-migration into the Columbia River. The project is located in Reach 2 of the Methow-Alta Assessment Unit. The Upper Columbia RTT/UCSRB Assessment Unit Prioritization Framework gives a combined restoration rank of #9/51 to the Methow-Alta Assessment Unit.  The Methow EDT model indicates that restoration in the lower reaches of the Methow River has the potential to provide some of the highest biological benefit of any reaches in the Methow, with all three reaches in the AU ranked in the top 5 in the subbasin. Both the UCSRB/RTT prioritization framework and the Methow EDT identify water temperature, riparian and floodplain function, and perennial side channels as the highest priority actions. Moving the wells in this contract allows for implementation of the Site 1 design, which maximizes the benefit by addressing all of these priority actions.

Project designs were completed under the previous contract 90824, and addressing the wells will ensure timely implementation of the completed design in a subsequent contract. The Project Area creates a unique need for active and ongoing stakeholder coordination given tribal, tribal allotment, state, and private ownership in the project area. Successful collaboration among these stakeholders for this project will be essential to ensuring access to other prioritized restoration sites within the LMRA to address instream conditions and improve the growth and survival of ESA listed fish species.

MSRF staff will coordinate, collaborate, and maintain effective communication with BPA PM/COR, EC Lead, HIP Review Lead, and Hydraulic Engineer during the entire length of this contract with regards to advancement of the project design. MSRF and its subcontractors will address BPA comments and concerns, and the two entities will arrive at a mutual beneficial consensus to ensure that actions developed will meet BPA needs for recovery credit.

**CCR-50431**
This CCR includes three updates to the contract:

**The contract is being amended to update Methow Salmon Recovery Foundation's indirect rate to the 2024 negotiated rate. This is a no-cost update to the contract budget.

**Mileage rates are updated to reflect the 2024 rate. This is a no-cost update to the contract budget.

**The contract has been updated to add scope and budget to fund the production of a stewardship report for the Upper Beaver Creek Ranch (Campbell property) and reimburse MSRF for interim stewardship costs, holding costs associated with the delays in resale, and staff expenses related to performance of stewardship obligations and ongoing coordination with BPA and YN to meet BPA's requirements for resale.

MSRF has been coordinating with BPA and the Yakama Nation (YN) to resell the Upper Beaver Creek Ranch (Campbell) property initially purchased with funds from YN Project 2009-003-00 and held by MSRF with a Conservation Easement to BPA while habitat restoration occurred on the property. From the outset, the property was intended for resale after YN completed restoration actions on the property, and interim stewardship funding was provided through a series of property management contracts to MSRF under 2009-003-00 through September of 2018.  Although the resale was initially anticipated to take place prior to the expiration of these interim property management contracts, approval of the sale has been delayed by BPA due to internal review constraints. This CCR adds scope and budget to provide funding for MSRF to complete the stewardship report and reimburse MSRF for interim stewardship costs, holding costs associated with the delays in resale, staff expenses for interim stewardship obligations, and staff expenses required for the ongoing coordination with BPA and YN needed to finalize the resale of the property.