Through this Sugar Final Design and Implementation contract, MSRF will expand upon the work initiated/completed in previous BPA contracts # 88617 and #91008 to complete final designs for discreet habitat improvement actions at the Sugar Levee (Right) and Sugar Left project areas.

Under this contract, MSRF will advance the 60% design to final design and coordinate with local, state, regional, and federal authorities to secure permits and clearances with the goal of initiating Phase 1 construction in summer 2024.

Due to the size and scope of the overall project, project implementation will be phased. The current plan is to initiate all or part of the work in the Sugar Levee (Right) project area in Phase 1 and expand to include the work in the Sugar Left project area in Phase 2; however, this plan may need to be adjusted depending on floodplain permitting and other requirements. This contract anticipates construction beginning in 2024 (Phase 1) and continuing to final implementation (Phase 2) starting in 2025 subject to securing FEMA authorization. Work planned under this contract includes procuring materials for and constructing 23 engineered log jams with 10 associated pools and enhancing and connecting up to three high flow side channels.

Design:
MSRF will continue to work with the Wolf Water Resources, the previously selected design engineer, in coordination with BPA, BOR, and Washington State Recreation and Conservation Office -Salmon Recovery Funding Board (RCO-SRFB) to develop final designs for the Sugar project that address restoration priorities identified through the Upper Columbia Prioritization Framework. Final design will demonstrate direct benefits to floodplain connectivity, in-stream habitat complexity, and/or reconnect and enhance side-channels and wetland areas within the Sugar Right and Left project areas.

Cost Share:
MSRF has secured cost share funding award for design through RCO-SRFB, which is a cost-share for this contract. MSRF has secured implementation cost share from RCO-SRFB and WA Department of Ecology through Floodplains by Design. MSRF will work with the design contractor to ensure local, state, and federal stakeholder concurrence on permitting and design requirements and acceptance of final designs, including through the HIP review process.

Habitat Prioritization:
The Sugar project is located along the Methow River north of Twisp, WA, in Reach 1 of the Methow-River-Thompson Creek Assessment Unit (AU), which was included within the Middle Methow Reach Assessment (BOR 2010). This area is considered to be a major spawning area for steelhead, and critical rearing habitat for both steelhead and spring Chinook. The UCSRB/RTT Prioritization Framework identifies this as an important reach for restoration for Upper Columbia River (UCR) spring Chinook (#11/51), due to high intrinsic capacity, and low habitat quality. This reach is considered to be a priority for restoration (ranked #6/14) by the Revised Upper Columbia Biological Strategy (2017) and current prioritization framework, and is also highly ranked in the Methow EDT (restoration priority rank of #2/49 for UCR steelhead and #4/49 for UCR spring Chinook). Current flood and infrastructure protection measures have resulted in loss of side channel habitats, lateral habitat connectivity, in-stream habitat conditions, and riparian conditions. The UCSRB/RTT Prioritization Framework is very responsive to changes in habitat quality in this reach. The EDT indicates restoration in this reach has high potential to increase productivity, abundance and capacity and recommends projects that target riparian and floodplain conditions as well as cover and complexity. BPA support will allow MSRF to expedite design and implementation of priority actions to increase habitat capacity, particularly for juvenile rearing for the target species.

Completed habitat assessments for this segment of the Methow River identified opportunities to enhance floodplain connectivity on nearly 90 acres of currently isolated or partially isolated floodplain, wetland and side channel habitat areas where protections have previously been secured through land acquisitions using a combination of HCP Tributary Committees, PRCC, state, and federal funds. Implementing these actions would result in increased connectivity specifically during the periods beneficial to steelhead and Spring Chinook.

MSRF Contract Manager and staff will all cooperate, coordinate, collaborate, and maintain effective communication with BPA PM/COR, EC Lead, and Hydraulic Engineer during the entire length of this contract with regards to project design.  MSRF and its subcontractors will address BPA comments and concerns, and the two entities will arrive at a mutual beneficial consensus.

**CCR-50784**
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 reflect a NO COST time extension through October 2025. The project was initially planned for a two-year construction window. During pre-permit consultation with FEMA, the risk of significant increased permitting costs associated with a two-year project was identified, and the engineers recommended that we construct in a single year. This no-cost time extension will preserve funding initially allocated for 2024 construction and allow all project elements to be constructed in 2025, consistent with the guidance provided by FEMA and the project engineers.