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HomeMy WebLinkAbout01/16/02CITY OF ~~~~~~~~L~ CALl FORNIA WATER BOA Mark C. Salvaggio, Chair David Couch, Vice Chair Harold Hanson CITY OF BA~RSFIELD WATER BOA~ MEETING WEDNESDAY, JANUARY 16, 2002 - 4:30pm Water Resources Building Con[erence Room 1000 Buena Vista Road, Bakersfield, CA AGENDA 1). CALL MEETING TO ORDER 2). ROLL CALL 3). APPROVAL OF NOVEMBER 6, 2001 SPECIAL MEETING MINUTES 4). SCHEDULED PUBLIC STATEMENTS 5). KERN RIVER LEVEE DISTRICT OPERATIONS REPORT 6). KERN RIVER OPERATIONS REPORT 7). OLD BUSINESS A. ENERGY TASK FORCE UPDATE - For Board Review 8). NEW BUSINESS A. KERN RIVER FLOW RESTORATION PROGRAM UPDATE - For Board Information B. INDEPENDENT CONTRACTOR'S AGREEMENT WITH CALIFORNIA WATER SERVICE COMPANY FOR PROFESSIONAL ENGINEERING AND INSPECTION OF NORTHEAST BAKERSFIELD RIVER INTAKE PUMPING STATION - For Board Approval C. UPDATE ON REQUEST TO KERN COUNTY WATER AGENCY FOR TREATED DRINKING WATER TO NORTHWEST BAKERSFIELD - For Board Information D. SERVICES CONTRACT WITH DODD INVESTIGATIONS, INC. - For Board Approval. 9). WATER BOARD STATEMENTS Page I of 2 1000 BUENA VISTA ROAD · BAKERSFIELD, CALIFORNIA 93311 · (661) 326-3715 10). CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION, CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) NORTH KERN WATER STORAGE DISTRICT vs. KERN DELTA WATER DISTRICT, et al, TULARE COUNTY SUPERIOR COURT CASE No. 96-172919. 11). CLOSED SESSION ACTION 12). ADJOURNMENT ~vea~;rBl~ge~or~ r c e s Manager POSTED: January, 11, 2002 S:\2002WBMINXWBJAI6 Page 2 of 2 MINUTES OF THE SPECIAL MEETING OF THE WATER BOARD - CITY OF BAKERSFIELD Held Tuesday, November 6, 2001, Water Resources Conference Room, 1000 Buena Vista Road, Bakersfield, CA 93311. 1. The meeting was called to order by Board Chair Salvaggio at 4:31 p.m. 2. Present: Mark Salvaggio, Chair David Couch, Vice-Chair Harold Hanson 3. Boardmember Couch made a motion to approve the minutes of the Regular Water Board meeting held July 11, 2001. Motion carried. 4. Them were no public statements. 5. No report for the Kern River Levee District. 6. An update on the Kern River operations was given by Hydrographic Supervisor Steve Lafond. Current Lake Isabella storage is less than 100,000 acre-feet, with the river inflow under 200 cfs for most of this fall which is the leanest flows experienced in several years. The flow down the Kern River, in the vicinity of Manor Street will return water to the area that has been dry for months. The last three years of Kern River runoff were 54% of normal, 65% and 53%. For Board information, no action required. 7. Old Business. 7A. Assistant City Manager John Stinson gave an update and recommendation regarding the energy task force, the reasons for forming the task force and steps taken to review the electrical issue. Staff is continuing to look at the feasibility ofonsite generation at some City facilities and related costs. The Water Resources Department implemented a demand reduction program which reduces energy loads during peak periods of demand on the statewide system and reduces energy costs for the City. After some discussion, a motion was made by Councilmember Couch to receive and file the report and bring it back to the Boaid at the next meeting. Motion carried. 8. New Business. 8A. Mr. Core presented to the Board a supplement to Water Board Agreement No. 01-08, which is a dry year plan for the Northeast Bakersfield Water Supply Project with California Water Service Company. The City, in 1999, entered into an agreement with California Water Service Company to supply water for their new NE Bakersfield water treatment plant, agreeing to prepare a plan at a future date, to provide water during periods of critically dry years. This supplement is that plan. A motion to approve was made by Boardmember Salvaggio. Motion carried. 8B. The City's participation in the weather modification program with the Kern River Interests and Atmospherics Inc. is an annual program that is done to enhance the overall water supply and generate more snow in the water shed in areas above 7,000 feet. A motion for approval was made by Boardmember Couch. Motion carried. 8C. Mr. Core gave a brief background on the agreement to discharge water into the Calloway Canal. This agreement is between the City, Equilon Enterprises, and North Kern Water Storage District which would allow Equilon to discharge treated groundwater effluent to the Calloway Canal for irrigation purposes. Boardmember Couch made a motion to recommend approval by City Council. Motion carried. 8D. The draft agreement with Kern Delta Water District, owner of the Kern Island Canal, to allow modification to the Kern Island Canal for the Riverwalk Plaza project was brought to the Board by Mr. Bogart. The City desires to reconstruct a portion of the Kern Island Canal to create a natural stream-like amenity of the River Walk Plaza Project. The City would agree to pay all costs to construct, operate, maintain and repair this facility and ensure no interference with Kern Delta's use of the Kern Island Canal for water distribution. If the agreement is completed and finalized by Kern Delta, staffwill present it to the City Council for final approval. A motion was made by Boardmember Hanson to recommend approval by City Council. Motion carried. Boardmember Couch voted no and stated he would submit a minority report. SE. During the budget process Boardmember Couch had a question regarding the long term debt on the water bonds versus our long term water contracts. The 1976 Water Bonds will be paid off in the year 2007 and the water contracts run to 2012. An amendment was discussed at the last Water Board meeting wherein staff has prepared a draft policy to be added to the existing City Water Policy Statement. This additional policy states that all revenues received from the operation of the water enterprise would continue to be used within the water related functions and operations. Boardmember Couch made a motion to approve. Motion carried. 9. The Water Resources Department Capital Projects mid-year report was presented by Mr. Bogart to give the Board an update on the many construction projects and facility improvements budgeted by the Water Resources Department and as a result of Prop 12 and Prop 13. Boardmember Salvaggio asked for the status of the Kern River Flow Restoration Program negotiations with the Kern County Water Agency's and when it would be brought to the Water Board. Mr. Bogart said the draft agreement should be ready by the January, 2002 meeting. For Board information, no action required. 10. California Water Service Company has sent invitations for a groundbreaking ceremony at the Northeast Bakersfield Water Treatment Plant site to be held Friday, November 16,2001, starting at 11:00 a.m. There will be several speakers, ceremonial shovel digging followed with a light lunch sponsored by California Water Service Company. For Board information, no action required. 11. The proposed Water Board meeting schedule for the year 2002 was brought before the Board for review and approval. A motion to approve the meeting schedule was made by Boardmember Couch. Motion carried. 12. Water Board statements. Boardmember Salvaggio requested a memo to update the City Council on the latest ruling and effects to the City's Ashe Water system and California Water Service Company system regarding arsenic levels allowed in drinking water now that the arsenic standard has been adopted. Boardmember Salvaggio had information to share with staff due to his membership on the California Regional Water Quality Control Board. Boardmember Salvaggio requested a memo summarizing our position regarding wastewater treatment plant issues; he also requested a letter be sent to Art Baggett of the State Water Resources Control Board who is chairman of Basin Planning, regarding ag runoff issues in our region, redirection for waiver requirements and basin planning efforts, timber harvest plan review which staff, the Water Board and the City Council should find interesting. Boardmember Salvaggio also requested that Alan Daniel, Deputy City Attorney research the question of whether the California Air Resources Board members and the San Joaquin Valley Pollution Control District members are subject to ex-parte communications regulations. Boardmember Couch requested that staff contact the Southern California Water Committee to get on the mailing list for their agenda so they could review and discuss with Boardmember Couch before he attends the meetings. 13. Closed Session. Adjoumed to Closed Session at 5:44 p.m. Conference with legal counsel - existing litigation, closed session pursuant to Government Code Section 54956.9 (a) North Kern Water Storage District vs. Kern Delta Water District, et al, Tulare County Superior Court Case No. 96-172919. The meeting reconvened at 5:55 p.m. .... 14. No action taken, update by legal counsel. 15. The meeting adjourned at 5:55 p.m. Mark Salvaggio, Chair City of Bakersfield Water Board Sharon Robison, Secretary City of Bakersfield Water Board · '~ KERN RIVER LEVEE Pioneer Tm-Out Pipeline Stockdale Highway/Calloway Road River discharge side of pipeline View towards river, required concrete collar in foreground KERN RIVER BASIN SNOWPACK ACCUMULATION EIGHT SENSOR INDEX January 10, 2002 40.0 --I [ ; 1997-1998 242% A-J 35.0 30.0 .1996-1997 122% A-J ~ 25.0 c.. , o , ~ i100% of April 1 Average : ~ 20.0 0 (o 15.0 12001'20021 Average 53% A-J 10.0 ..... I 1999-2000 65% A-J 1998-1999 ' 54% A-J 5.0 · " '~ 1976-1977 I i 20% A-J November December January February March April Snowpack Accumulation Season CITY OF BAKERSFIELD WATER RESOURCES DEPARTMENT ISABELLA RESERVOIR DALLY OPERATIONS REPORT (All readings are for date of report (THURSDAY) as of 0001, except as noted.., cfs in italics) Date of Report; January 10, 2002 ISABELLA RESERVOIR 1 2548.45 Lake Elevation (ft.) 107840 Storage (AcFt) +44 Change (AcFt) 445 Inflowto Isabella (cfs) 2 568075 Storage Capacity 19% % of Capacity 156276 Normal Storage 69% % of Normal Storage For this Date 3 4421 Average LakeArea (Acres) 9989 Inflow(Month) 7922 Outflow(Month) 4 389 North Fork Mean 379 North Fork @ 0600 Hours 58130 Accumulative Inflow(01-02 WY) 5 412 Mean Outflow 397 Borel Canal 15 Main Dam Outlet 54793 Accum. Outflow(WY) 6 412 Outflow @ 0600 397 Borel Canal @ 0600 Hours 15 Main Dam Outlet @ 0600 Hours Hours 7 11 Lake Evap. (cfs) 0.07 Inches Evap. for 24 Hours 133 Lake Evap. (Month to Date) 8 0 Spillway Discharge for 24 Hours PRECIPITATION AND TEMPERATURF 9 0.00 Inches of Precipitation at Isabella for 24 Hours 0.09 Inches of Precipitation at Isabella for Month 10 6.14 Seasonal Precip. Isabella 3.94 Normal for 156% Isabella Precip. (Season: Oct 1 through Sap 30) this Date % of Normal 11 0.00 Inches of Precipitation at Pascoe for 24 Hours 0.90 Inches of Precipitation at Pascoe for Month 12 17.70 Seasonal Precip. Pascoe 13.12 Normal for 135% Pascoe Precip. this Date % of Normal 13 11.9 Upper Tyndall Creek 19.7 Pascoe 10.4 Wet Meadow 14 55 Isabella Maximum Temperature 15 37 Isabella Minimum Temperature 52 24 HourWind Movement (Miles) NATURAL RIVER FLOW 16 471 Natural Flow (cfs) 11023 Natural Flow (Month to Date) 11023 2002 Jan-Mar Runoff 17 458 Mean Flow 103% Natural Flow 379 Median Flow 124% Natural Flow For this Date in % of Mean For this Date in % of Median 18 2574 Max. on Record 151 Min. on Record 60575 Accum. Natural Flow(Water Year) For this Date For this Date 19 467 First Point Flow 8956 First Point (Month to Date) 56908 Accum. First Point (Water Year) KERN RIVER FACTS & FIGURES: ~ · For the month of January 1991, natural flow totaled 10,931 acre-feet, breaking the record minimum B A K E R S F I E L D for the month previously established in 1961 (11,466 acre-feet). On January 3, 1997, the 24-hour Produced by City of Bakersfield yield of the Kern River was reported at 39, 261 acre-feet, the third highest single-day yield of Kern Water Resources River during the twentieth century (12-06-66 @ 158, 735 AcFt; 1-25-69 @ 48,032 AcFt). (661) 326-3715 BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM November 1, 2001 TO: Alan Tandy, City Manager FROM: John W. Stinso~sistant City Manager SUBJECT: Energy Task Force Status and Recommendations During the past few months the City's Energy Task Force has been involved in a variety of activities as a result of the energy situation in California. The Energy Task Force has been concemed with several objectives related to the recent energy crisis including the following: a. Local control of the electrical system. b. Avoiding rolling outages. c. Maintaining electrical reliability for citizens and businesses. d. Availability of electricity for new businesses Ener_~_ Environment. While the energy situation has improved due to increased conservation, lower summer temperatures, and increased electricity supplies there remain numerous unresolved issues which affect the energy situation. These include the possibility of the State constructing power generation facilities / acquiring transmission lines; the State possibly taking over private generation facilities through eminent domain; the uncertainty of natural gas prices (only 16% of supply comes from within California); continued volatility of the power purchasing market (spot market v. long term contracts; PG&E bankruptcy; SCE bailout?); uncertainty about private investment in power generation facilities in California; the need for the State to recover stranded costs and re-payment of bond debt to purchase power; and the ability of the City to purchase fuel or power at a cost lower than the Department of Water Resources or others. Task Force Activities: The Energy Task Force has been studying these issues and has bccn involved in thc following activities: · Public Works Department has been collecting power usage information for city buildings and facilities and for City-wide electrical use from utility. The Cityhas accomplished significant reductions in energy usc in excess of 20% below last years usage through conservation efforts. S:~JO~It~ Crisis\Tnsk Force Rc~mmendntion. wpd · The City Manager's staff has been monitoring status of electrical issue in Sacramento and state-wide through news articles and League of California Cities information. Staffhas been in communication with the State's "Flex Your Power" coordinators to obtain energy conservation information. There are a large number of bills involving energy issues currently going through the Legislature. Staffin the City Manager's and City Attorney's Office are following them as they progress. Legislation regarding municipal utilities, electricity aggregation and other relevant topics have been identified for legislative tracking by staff. · Public Works has evaluated the possible use of distributed generation with on-site generators for city buildings and facilities. These smaller gas fired generators would serve individual buildings and facilities to remove them fi.om the grid for their base electrical load. They would still be connected to the grid for peaking power. The Task Force has met with vendors who provide this technology and conducted site visits to evaluate its feasibility for various city facilities. Based upon this evaluation, it is possible that this approach could be economical if used. We are evaluating the feasibility of this technology for buildings such as City Hall, the Police Building and Martin Luther King Center. · Public Works staff reviewed the cost and benefit of co-generation plants and bio-mass generation facilities and any feasible applications for the City. Based upon current information these do not appear feasible for the City at this time. · The Water Department implemented a demand reduction program which sheds electrical loads during stage II energy alerts. The city then operates its pumps during off-peak periods and receives payments from the state as part of the program. This program reduces energy loads during peak periods of demand on the statewide system and reduces energy costs for the City. · City Attorney has been in contact with private attorneys involved in electrical energy law and discussed regulatory aspects and considerations of forming municipal utilities. The attomey has been soliciting information regarding fees and expertise from law firms specializing in the energy area in the event they are needed. · The City Attorney and several of the Energy Task Force members have met at the request of Councilmember Maggard, with representatives of PG&E, various oil companies, and other energy industry experts to discuss energy alternatives available to the City. The issue of the city becoming a municipal utility was discussed with them. It was discussed that the city would have to remain connected to the State electrical grid and would be subject to rotating outages, unless we totally separated ourselves from that system. However, separating ourselves from the state system would require expensive additional redundant power generation capabilities for peak and emergency backup power. It was discussed that due to the large differential between the area's base loads (180 megawatts average) and peak loads (335 megawatts average) that there would be significant costs to provide for this peak capacity should we separate the City from the State electrical grid. PG&E indicated that they could continue to distribute electricity for the City at their costs, if we were to become S:'~OH]q~.uergy Crimim\Tamk Forc~ Rcomm~iafiou. wpd a municipal utility. If we were to take over their system it is likely the City would also have to pay the stranded costs of acquiring PG&E's distribution system; distribution, billing and collection costs; electricity production costs as well as costs associated with the bonds issued by the state to purchase power. The City Attorney determined it is possible for the City to form a municipal utility, however, the Charter requires a vote for its formation. Additionally any municipal utility would also be subject to regulation by the Public Utilities Commission, California Energy Commission, San Joaquin Valley Air Pollution Control District, Federal Energy Regulatory Commission, and other state and federal agencies. As a result of these meetings and due to the current environment of the energy industry noted above, it is apparent there is a need for further outside expert review should the city desire to pursue this alternative. · Staffhas also reviewed information obtained by Councilmembers from a recent league of California Cities seminar on electrical energy and reviewed alternatives discussed at that meeting including adoption of an ordinance to reserve the City's fight to aggregate electricity for distribution. The PUC conducted hearings related to the aggregation issue and recently approved a decision to suspend for those served by PG&E, SCE, and SDG&E the right to enter into direct access contracts or agreements after September 20, 2001. This decision is consistent with action taken February 1, 2001 by the legislature in its approval of AB 1X which suspended direct access until such time the Department of Water Resources no longer supplies power on behalf of the three major utilities. The decision also was based on the need to provide a stable customer base to sell bonds and ensure recovery of the Deparhnent of Water Resources costs of acquiring power the state has purchased since January 2001 and continues to purchase. This decision effectively eliminated the ability for Cities and others served by the three major utilities to implement electrical aggregation through direct access agreements. Even those Cities who may have enacted ordinances which reserved the right to aggregate can no longer enter into contracts after September 20, and the Commission specifically reserved the right to suspend any contracts entered into after July 1,2001. The Commission may also limit the renewal of direct access contracts entered into prior to July (this is to be determined in a subsequent decision by the Commission). Had our City passed a resolution in July reserving the fight to aggregate electricity as some cities did, it is unlikely we would have been able to execute any contracts prior to the September 20~ date since we would have had to identify and enter into agreements with electrical providers and identify potential aggregation customers based on mutually beneficial economical conditions (assuming they were possible). These arrangements are also made difficult due to current law which requires individuals to "opt in" to receive aggregated service. Determining how many and which customers would choose to "opt in" requires significant time and research prior to the purchase of the needed electricity. It is also likely that potential providers and customers would be hesitant to enter into agreements with the City for electricity with the knowledge that the PUC was likely to eliminate direct access to be consistent with the legislation passed in January and that contracts entered into could also be subject to suspension by the Commission as mentioned above. S:UOHN'~nergy Crisis\Tnsk Force Rcommendntio~.wpd It is possible that some time in the future the Commission could allow aggregation again, however it will most likely require legislative action and a return to a more stable electrical market where the Department of Water Resources is no longer purchasing power for the three major utilities. However, the City Council could still consider passing a resolution reserving the fight to aggregate electrical power should direct access be permitted again. Based upon these activities the Task Force is recommending the Water Board and the City Council consider the following steps: 1. Hire a specialist/consultant familiar with the formation of municipal utilities as a neutral party to further evaluate the feasibility of the City becoming involved in electrical generation/distribution as a municipal utility. This individual would need to address the legal, technical and engineering issues involved with this alternative. Funding for this would come from Council Contingency. Staff is currently reviewing possible consultants and the anticipated cost. 2. Consider adopting an ordinance which reserves the city's direct access fights to aggregate electrical power for distribution should it be allowed in the future by a change in state law. 3. Evaluate and implement a pilot program for distributed generation using gas fired generators to provide base electrical loads for certain city buildings depending on the operational and economic feasibility of each application. 4. Become actively involved in supporting legislation related to energy issues which provides for enhanced local municipal control, energy reliability and citizen safety. The Council may also want to pursue legislation which would provide a preference for our community to be exempt from rolling outages since our local energy generation exceeds the local demand, and thus makes our county a net exporter of energy. This would require legislative sponsorship and support. It may be difficult to gain sufficient support to pass such legislation, however. S:~O~ Crlsis\Tnsk Force Rcomm~dafiou. wlxl THE BAKERSFIELD cAUFORNIAN A3 *. Wednesday, January 9, 2002 ~ PG&E has cash to cover its debts, PUC says · unnecessarily complicated, pit- State power regulators bUton into sepa companies. protest utility's plan in U.S.We commission said it was prepar- oth~ in an attempt to deregulate ing an alternative reorganization plan itself.' Bankruptcy Court filing, thatitwillfile, ifU. S. Bankruptcy Judge Under PG&E'~plan, filec_l_ in~.Ptem- By JENNIFER COLEMAN Dennis Montali allows it. ber, the utility would split from its par- Re Asso~i~te~ Press PG&E has requested that its period ent company, PG&E Corp., and trans- SACRAME~ -- California's of exclusivity -- the tme in which the fer generating and elec~c and gas largest utility has amassed $4.9 billion debtoris the onlypar~y that can offer a transmission assets to form three new in czsh and should use that money to plan of reorganization -- be extended .companies. pay its debts and emerge from bank- from February until the end of June. Restructuring would allow the utili- mptcy, the state Public Utlites Com- Montali is scheduled to hear that issue ty and the new companies, alltooper- mission said Tuesday in a filing in U.S. next week in Ssn Fmncisco. ate under the parent PG&E Corp., to BankmptcyCourt The PUC filing aims to keep state pay its debts by rsising$13.2 billi0n in The PUC filed its objections to the oversight of the utility, while ~ let- cashandloans. reorganization pl~nproposedby Pacif- ting PG&E pay off bil~ons in debts, PG&E officials did not immediately ic Gas and Electric Co., in which the said Commission President Loret~a retum calis from The Associated Press utility wouid spin off its generaang Lynch. seeking comment. pi,ants, transmission lines and natural Lynch said Tuesday the PG&E plan Nettle Hoge, executive di~r of The Utility Reform Network, coun- said you can't do that," Hoge said. sion outlining how PG&E, Southern tered that the utility "is so awash in If the PUC pursues that plan, she California Edison and San Diego Gas money" it shouldn't be in bankruptcy said, the ratepayers should get some- & Electric Co., will share revenue court~ thing in return-- the utility's generat- with the Depart[n, ent of Water "They have $4.9 billion cash on hand ing assets. Resources. with the likelihood of getting more," Consumer advocate Doug Heller, of The draft adopts a proposal by she said. "Theyhave no business being the Foundation for Taxpayers and TURN, which is based on a per-cus- in bankruptcy court or stealing our Constunem Rights, called the PUC tomer basis. PG&E had objected to an most valusble assets and marking up plan "ludicrous" and said it echoed a earlier proposal, saying it shit~ed $500 the product and selling it back to us at deal the PUC cut with Southern Cali- n~llion to their customers and let the a higher profit.' fomia Edison to have mtepayers pick Southern California utilities off the The PUC plan uses "headroom" in up the tab for much of that utility's hook for those debts. the rates -- the difference between debt. PG&E spokesman Ron Low said what the utility currently charges cus- "The world view of PG&E and state utility officials were reviewing the new tomers and what it pays for wholesale officials seems to be limited to differ- dxaff decision, but that it appeared to energy -- to pay PG&E's debts, Hoge ent ways to make the public pay for use a"fair allocation method." said. their mistakes," he said. After a 30-day public comment peri- That's "using ratepayers' money to Also Tuesday, a PUC administra- od, the commission could vote on the pay off historic debt and the PUC has five law judge released a draft deci- plan in February. THE BAKERSFIELD CAUFORNIAN Wednesday, January 9, 2002 .State grid c,.hlefs propose daY ahe'ad market for energy By JENNIFER COLEMAN · powerit bought (/trough the exchange. The Associated Press SinCe then, the state has stepped in SACRAMENTO -- A blueprint by to buy power on behalf of Pacific Gas state grid officials for the s 'tate's elcc- ~uad Electric Co., San Diego Gas & tricity market includes reviving a day- Electric Co., and Southern California ahead market similar to one that col- Edison and has arranged long-teml lapsed during the height of the energy contracts for about 40 percent of the crisis last year. power those utilities need. Officials at the California Indepcn- That means ltle ISO would handle a dent System Operator planned to much smaller day-ahead market than release a draf~ of the new market Tues- the former exchange, Fishman said. day, then hold several days of meeth~,s Generators and marketers "believe withmarketparlicipantsabouttheplan, it is somethhig that's .needed in this Under the plan, the Independent slate," said Gary. Ackerman, execuUve System Operator would set up a day- director of lbo Western Power Trading ahead market for energy purchases Forum. "Thc tough part is, who should similartotheoneopemtedbythenow_ do it? We don't believe th(; ISO sliould' defunct Power Exchange. be ll~e parly developing this." "It's a niche not filled in California Ackcm~an, whose organization since the Power Exchange fried for comprises energy marketers, schedul- bankruptcy," said grid spokesm;m ingcoordinators, genemtors and other Gregg Fishman. market participants, said he'd like to ~i TheISOoperatesanhour-ahcadand see thc ISO 'allow businesses to bid for spot market for power necessary to the chance to operate the day-ahead · balance much of the state'a power grid. market. · Fishman'. said expanding',.the ISO's. The'ISO, a nonprofit entity, has no " operation to' include :.the day-ahead incentive to improve efficiency, he market would also let grid operators· said, butafor-profitcompanywouldbe relieve congestion on'some crowded encore'aged to h~crease performance. transmissionlines. DWR spokesman Oscar Hidalgo The Power Exchange, a clearing- said state power tradem had suggested house, for most energy purchases in ways to develop a day-ahead market. California, Was established when the "We want. to see anything that's state approved a deregulation plan in designedtakesintoaccountalotofthe 1996. It acted as amiddleman between historical problems we've had in the uliliUes~ and power, suppliers. It market and fLxes them, in terms of declared bankruptcy last spring after holding generatom accOtmtable and three utilities ~ the exchange's m~or preventing them from manipulating customers -- couldn't pay for the the market," he said. KERN RIVER FLOW RESTORATION PROGRAM "Turning Back the Clock on Kern River ..... " Long before Bakersfield became a town site, the Kern River flowed naturally from its origin in the southern Sierra Nevada mountains to its eventual destination, the Tulare Lake bed. The Kern River, southern-most of the great streams that flow westward from the crest of the mighty Sierra's, also has the most variable flow of all rivers in California. Even long ago, dry Sierra winters would leave the snow pack sparse, and Kern River flow that normally reached to the west side of the valley floor would dry up by early summer. As canals were dug in the 1860's and 70's, water was being appropriated from the Kern River and flow through what is now Bakersfield became less and less frequent. Farmers began to utilize the waters of the Kern River to South Fork Kern River near Onyx irrigate their lands both north and south of the river bed. After the completion of Lake Isabella in April 1954, water flowing through Bakersfield became almost non-existent due to the fact Kern River water could now be stored behind Lake Isabella Isabella Dam rather than left to flow down the river. Beginning in 1977, shortly after the City acquired water rights to the Kern River, this began to change. A strong desire and goal of the Bakersfield City Council was to see more flow in the Kern River more often. But turning back the clock - allowing the Kern River to flow as it did a hundred years ago - would not come easy. The existing Kern River water rights are over 130 years old. Districts that administer these historic water rights are extremely competitive. Water is sold, traded or bartered at some of the highest dollar costs that can be found anywhere in the arid West. River water is extremely scarce to our area, and on average, only one year in ten has a deep enough snow pack to allow for the Kern River to flow bank to bank throughout the year. Two-thirds of all years on the Kern are below normal, which doesn't leave much to flow downstream. Faced with these many obstacles, the City gradually began to change the course of Kem River. When the City assumed the obligation of Kern River operation in 1977, waters that flow in the river were governed by the Miller-Haggin Agreement of 1888, a century old document that spoke for all Kern River water. Under this agreement, water was typically present in the Kern River bed only in those years when water supply was above 70 percent of normal. Working within all existing contracts on Kern River, the City developed a unique arrangement with Improvement District Kern River near Bakersfield Heart Hospil:a! No.4 (ID4) of the Kern County Water Agency to provide for flows in the Kem River in those lean years between 50 and 70 percent of normal. (Note: ID4 was formed for metropolitan Bakersfield during the 1960's to bring state water to Bakersfield from the Califomia Aqueduct to help offset shrinking groundwater supplies). Ironing out this water supply agreement with ID4 was a long and arduous process for the City due to the complicated water contracts involved. The agreement, popularly referred to as "Kern River Parkway Agreement", was finalized in 1999 and became a major step towards meeting the City Council's goal by committing water to flow down the river during the May-September recreation Shoreline of Yokuts Park season of most years. But more was needed to insure water would flow in the river during the "dry" water years. Following the passage of the Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Act (Proposition 13) by California voters in March of 2000, the City teamed with the Kern County Water Agency, the local agency responsible for the administration of State Project water in Kem County, to secure grant funding for the Kern River Flow Restoration Program. The heart of the program was the construction of eight water wells that will be used primarily in years of 50 percent or lower water supply conditions to enhance recreation flows in the Kern River through Bakersfield. In reality, well water produced by the eight wells probably won't flow directly into the river bed. Rather, the well water will be delivered into canals and Kern River water flowing in these same canals will instead flow into the river bed. The Kern River Parkway Agreement, supplemented by the new Kern River Flow Restoration Program, will allow the highest quality Kern River water to percolate into our underground drinking water supply while at the same time providing much- anticipated recreation season flow for the entire community to enjoy. 1-11-02 Monday, January 7, 2002 ]'he Bake;$field Cabfomian ,, City editor: I]ob Christie · 395*7413 * fax: 395.7519 · e mail: Iocal@bakersheld,com 1.O0 AL Water project set to runneth over $23 million plan to stock With the wells ncarcomplefion, and snowpacks looking promising in Kern River with water will ~om.,~, c~fo.,i~ omeim a,o~e to begin in May, officials say. open the taps this smnmer i~tstead of waiting mtti12003, Clark s~(I. By GAlL DAVIS In l':uTt, the water supply is antple Californian staff wnter CUOIlgh this year for the Rem Coullty ·-mall: gda~bakemflold.com ' Water Agency to collect back on a A $23 n~llion project to keep water water loan it made three years ago to in the Rem River each smnmer is ou the North Rem Water District. schedule to start flowing in May, ofli- limt water, nmning liu:ough lite cials said Friday. riw.'rl)e(I now, is filterfl~g into lite That will mean a running river May aquifer, or natural undergrotmd reser- through September to take lite edge off voit. hot sunm~er days. Once the Rent River Flow Restore- lite flow will £eed an aquifer that lion lh'ogmm starts in May, water one serves Bakemfield, and provide a cen- to two feet deep will nm continually terpieee for parks, alJdetic riel(N, bike eaeh smnmer. paths and swimming areas. Ptmds for the project canto front the Butfirstaemcialsedesofwellshad slntewi(lei¥oposilion 13 Water Bond, to be in phwe to pump walvr in dry p~tssed by Califonda voters in March years, said Tom Clark, general manag- 2000. er of the Rem County Water Agency. For the past century, most Rem ii,use seven wells, which cost ,$3.5 River water was diverted upstreant to million, should be finished by April, irrigateeropsthroughawebofeanals. Clark said. Plea~ tam to RIVER / B2 RIVER: New water Kern River flow restoration program ~ill be 'luxury' during Water from the wells will be pumped into the Cross Valley Canal and can be used :ry years, official says to maintain aflowinthe Kern River, supply watertothe Kern CountyWaterAgency's ?'.~* water treatment plant or can be diverted into canals for delivery to various agricultural .Co.hued from B1 water districts that are a part of the Kern River Flow Restoration agreement. :::~ 'As l)opulalion and farming increased, water .. .... . ..... :~ ~t~e~tme too scarce to feed both the fiver and O Wells under ...... - :-"~'"R~'6~fi~' dn [ .... ' .......... .<:5 .But. lhe new wells and their aquifer wiU ! '-. i. , ~ rr : ' , ;iY~- .... %' ~5: t ~ can turn the wells on trod flood the fiver." ~ ' .. ! : na,~a_I -.'. ; i , i ............ C qt;~ ] :, o :~lrinkh~g water from the Rem River, which is rr rr :l tlr tuna I Rd : .">~-:='<. ................ ] ...... >~.' .,~ :oFmuch betler quality titan water from rite .... = ~ ........... ' ......... -5 : . '~).;' ~ ..... : ........... ~.--.~:~ ...... -..~ water project, said Flora Core, Bakers- ' · >~ ., m ", ~ ..... / f~ o, ~ ~,~ 7field water resources director. , .... ! /"1 ~.~ Stockda e HWV : D ~) '*~[ · iq{~. University Bakemfield ~kll be built in ~,-. := . ...... : .... ! 1 mile .55Plans include two parks: 30 acres on the source: Kern County WaterAgenc.v THE CALIFORNIAN '~OUth bank at Buena Vista Road and 40 acres '.lqbrliIoftheriver, nearAllenRoad, lite tmlined ponds, fed by the river, are, l)arks m~d a small danl should also be finished ?.:.The 30-acre park will contain picnic areas "designedtoleak,"sotheirwalcrcanseepinto soon, offieialssaid. · ired a five-acre pond. lite 4U-acre park will the aquifer, Core said. Officials plan a ribbon-culling ceremony in h{cludeah~l~'gerpondandatldeticfields. A pedeslriem bfidge (.otuwcUng the two March, Clark~xid. AGREEMENT NO. WATER BOARD AGREEMENT NO. INDEPENDENT CONTRACTOR'S AGREEMENT THIS AGREEMENT is made and entered into on , by and between the CITY OF BAKERSFIELD, a municipal corporation, ("CITY" herein) and CALIFORNIA WATER SERVICE COMPANY, a California public utility water corporation ("CONTRACTOR" herein). RECITALS WHEREAS, CITY and CONTRACTOR are cooperating in the final phases of construction of the Northeast Bakersfield Water Supply Project Intake Pumping Station and are desirous of continuing progress on the project and minimizing costs; and WHEREAS, CONTRACTOR represents CONTRACTOR is experienced and well qualified in the field of water engineering, treatment and distribution; and WHEREAS, the CITY does not have expertise currently available on staffto conduct engineering design, coordination of construction and inspection for the Intake Pumping Station portion of the facilities on the Northeast Bakersfield Water Supply Project; and WHEREAS, CITY desires to employ CONTRACTOR to provide professional engineering services and coordination of facilities construction and inspection as set forth herein; and WHEREAS, CONTRACTOR and CITY may outsource professional design and construction engineering services for certain portions of this project; and NOW, THEREFORE, incorporating the foregoing recitals herein, CITY and CONTRACTOR mutually agree as follows: 1. SCOPE OF WORK. The scope of work shall include all items and procedures necessary to properly complete the task CONTRACTOR has been hired to perform, whether specifically included in this scope of work or not. The scope of work for CONTRACTOR is to provide engineering design and construction plans for the following INDEPENDENT CONTRACTOR'S AGREEMENT S:2002CONTRACTS~CALWATERNEWSENG(2) lO January02 facilities of the NE Bakersfield Water Supply Project, the general location which is depicted on Exhibit "A": 1.1 A pumping station wet well structure which will receive gravity flow raw water from the CITY's in-place two 54" pipelines extending from the existing Kern River diversion works. 1.2 The Iow lift section of a pump station to nominally pump 13 mgd of water from the intake structure into a line discharging into raw water storage reservoirs (to be designed and built by CITY) and into a pipeline stub-out that is to provide water to the California Living Museum's (CALM) site. 1.3 ^ discharge pipeline fr°m the Iow lift pump station into the reservoir. 1.4 Pump and a stub-out from the pumping station structure for CALM tie-in. 1.5 A high lift pumping station to initially pump 20 mgd of water from the same pumping structure into a pipeline that will run along the outside of the berm of the raw water storage reservoir to a tie-in point with a 54" line (to be designed and constructed by CONTRACTOR) to convey water to the treatment plant. The pump station and pipeline are to be sized to accommodate an ultimate pumping capacity of 60 mgd for the plant. 1.6 A pipeline that will run along the outside of the berm of the raw water storage reservoir to a designated tie-in point with CONTRACTOR's 54" transmission pipeline. 1.7 An intake line from the raw water storage reservoir into the intake structure. 1.8 Valves and controls that permit emergency shut-off of inflow from the two 54" raw water intake pipelines and the opening the intake line from the raw water storage reservoir thereby allowing flow by gravity from the reservoir into the pumping structure. 1.9 An access road from the tie-in point with CONTRACTOR's transmission line, running along the high pressure pipeline to the pumping structure. 1.10 Security fencing around the pump stations and intake structure. 1.11 A tie-in point for the electrical power provider to connect planned underground power line to the pump station site. 1.12 A site for an emergency power generator at the pump stations. CONTRACTOR agrees that selection of an engineering firm for services to be outsourced shall be with the approval of the CITY. CITY shall be represented on the selection and approval committee for determining choice of firm to provide services. CITY shall approve of its portion of outsourced design and construction contract work prior to CONTRACTOR INDEPENDENT CONTRACTOR'S AGREEMENT S:2002CONTRACTS\CALWATERNEWSENG(2) Page 2 of 9 10Janua~02 authorizing work. CITY shall not be obligated to pay for services or products authorized by CONTRACTOR on CITY's behalf without prior approval by CITY. 2. COMPENSATION. The compensation set forth in this section shall be the total compensation under this Agreement including, but not limited to, all out-of-pocket costs and taxes. CITY shall pay only the compensation listed unless otherwise agreed to in writing by the parties. CITY shall be responsible for only its share of costs incurred by the CONTRACTOR for providing services as set forth in Section 1. A) Costs to be recovered by the CONTRACTOR from the CITY will be based on 100% of the costs for engineering services for design and construction of facilities provided solely for the CITY. Facilities included in this category are the Iow lift pump station, discharge line to the reservoir, and the pumps and stub-outs to CALM. B) Costs for engineering services for design and construction of facilities that will be jointly shared by CITY and CONTRACTOR will be split on a 50/50 basis. Facilities included in the joint category are the pumping station wet well structure, valves and controls for managing flow, fencing and roads. C) Costs for engineering services for design and construction of facilities provided solely for the CONTRACTOR will be 100% paid by the CONTRACTOR. Facilities included in this category are the high lift pump station section, pipeline to the tie-in with the 54" transmission line, the pipeline from the reservoir to the intake structure and the emergency power generation site. Total of payments from CITY to the CONTRACTOR shall not exceed Fifty Thousand dollars ($50,000.00). Any supplemental work or additional compensation above fifty thousand dollars ($50,000.00) will require approval of the City of Bakersfield Water Board. 3. PAYMENT PROCEDURE. CONTRACTOR shall be paid for services rendered after receipt of an itemized invoice that clearly establishes and documents the work performed or portions of work performed by or on behalf of the CONTRACTOR as approved by CITY and described under this Agreement. Payment by CITY to CONTRACTOR shall be made within thirty (30) days after receipt and approval by CITY of CONTRACTOR's itemized invoice. 4. STARTING WORK. CONTRACTOR shall not begin work until authorized to do so in writing by CITY. No work will be authorized until the contract has been fully executed by CONTRACTOR and CITY. 5. INCLUDED DOCUMENTS. Construction cost estimates, bid documents, including, without limitation, special provisions and standard specifications and any Request for Proposals, Request for Qualifications and responses thereto relating to this Agreement are incorporated by reference as though fully set forth. INDEPENDENT CONTRACTOR'S AGREEMENT S:2002CONTRACTS\CALWATERNEWSENG(2) Pa~e 3 of 9 lO January02 6. NO WAIVER OF DEFAULT. The failure of any party to enforce against another party any provision of this Agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time, and shall not serve to vary the terms of this Agreement. 7. LICENSES. CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits and approvals which are legally required for CONTRACTOR to practice its profession. 8. STANDARD OF PERFORMANCE. All work shall be performed in conformity with all legal requirements and industry standards observed by a competent practitioner of the profession in California. 9. MERGER AND MODIFICATION. This contract sets forth the entire Agreement between the parties and supersedes all other oral or written representations. This contract may be modified only in a writing approved by the City Council and signed by all the parties. 10. EXHIBITS. In the event of a conflict between the terms, conditions or specifications set forth in this Agreement and those in exhibits attached hereto, the terms, conditions, or specifications set forth in this Agreement shall prevail. All exhibits to which reference is made in this Agreement are deemed incorporated in this Agreement, whether or not actually attached. 11. TERMINATION FOR CAUSE. If at any time CITY becomes dissatisfied with the performance of CONTRACTOR under this Agreement, CITY may terminate this Agreement on ten (10) days written notice. Written notice shall be given pursuant to the notices paragraph of this Agreement. 12. COMPLIANCE WITH ALL LAWS. CONTRACTOR shall, at CONTRACTOR's sole cost, comply with all of the requirements of Municipal, State, and Federal authorities now in force, or which may hereafter be in force, pertaining to this Agreement, and shall faithfully observe in all activities relating to or growing out of this Agreement all Municipal ordinances and State and Federal statutes, rules or regulations, and permitting requirements now in force or which may hereafter be in force including, without limitation, obtaining a City of Bakersfield business tax certificate (Bakersfield Municipal Code Chapter 5.02) where required. 13. INDEPENDENT CONTRACTOR. This Agreement calls for the performance of the services of CONTRACTOR as an independent contractor. CONTRACTOR is not an agent or employee of the CITY for any purpose and is not entitled to any of the benefits provided by CITY to its employees. This Agreement shall not be construed as forming a partnership or any other association with CONTRACTOR other than that of an independent contractor. INDEPENDENT CONTRACTOR'S AGREEMENT S:2002CONTRACTS\CALWATERNEWSENG(2) Page 4 of 9 10Janua~02 14. DIRECTION. CONTRACTOR retains the right to control or direct the manner in which the services described herein are performed. 15. EQUIPMENT. CONTRACTOR will supply all equipment, tools, materials and supplies necessary to perform the services under this Agreement. 16. INSURANCE. In addition to any other insurance or bond required under this Agreement, the CONTRACTOR shall procure and maintain for the duration of this Agreement the following types and limits of insurance ("basic insurance requirements") herein: 16.1 Automobile liability insurance, providing coverage on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than One Million Dollars ($1,000,000) per occurrence; and the policy shall: 16.1.1 Provide coverage for owned, non-owned and hired autos. 16.1.2 Contain an additional insured endorsement in favor of the CITY, its mayor, council, officers, agents, employees and volunteers. 16.2 Broad form commercial general liability insurance, providing coverage on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than One Million Dollars ($1,000,000) per occurrence; and the policy shall: 16.2.1 Provide contractual liability coverage for the terms of this Agreement. 16.2.2 Contain an additional insured endorsement in favor of the CITY, its mayor, council, officers, agents, employees and volunteers. 16.3 Workers' compensation insurance with statutory limits and employer's liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence; and the policy shall contain a waiver of subrogation endorsement in favor of the CITY, its mayor, council, officers, agents, employees and volunteers. 16.4 All policies required of the CONTRACTOR shall be primary insurance as to the CITY, its mayor, council, officers, agents, employees, or volunteers and any insurance or self-insurance maintained by the CITY, its mayor, council, officers, agents, employees, and volunteers shall be excess of the CONTRACTOR's insurance and shall not contribute with it. INDEPENDENT CONTRACTOR'S AGREEMENT S:2002CONTRACTS\CALWATERN EWSENG(2) lO January02 Pa~e 5 of 9 16.5 Insurance is to be placed with insurers with a Bests' rating of no less than ^:VII. Any deductibles, self-insured retentions or insurance in lesser amounts, or lack of certain types of insurance otherwise required by this Agreement, or insurance rated below Bests' A:VII, must be declared prior to execution of this Agreement and approved by the CITY in writing. 16.6 All policies shall contain an endorsement providing the CITYwith thirty (30) days written notice of cancellation or material change in policy language or terms. All policies shall provide that there shall be continuing liability thereon, notwithstanding any recovery on any policy. 16.7 The insurance required hereunder shall be maintained until all work required to be performed by this Agreement is satisfactorily completed as evidenced by written acceptance by the CITY. 16.8 The CONTRACTOR shall furnish the City Risk Manager with a certificate of insurance and required endorsements evidencing the insurance required. The CITY may withdraw its offer of contract or cancel this contract if certificates of insurance and endorsements required have not been provided prior to the execution of this Agreement. 16.9 Full compensation for all premiums which the CONTRACTOR is required to pay on all the insurance described herein shall be considered as included in the prices paid for the various items of work to be performed under the Agreement, and no additional allowance will be made therefor or for additional premiums which may be required by extensions of the policies of insurance. 16.10 It is further understood and agreed by the CONTRACTOR that its liability to the CITY shall not in any way be limited to or affected by the amount of insurance obtained and carried by the CONTRACTOR in connection with this Agreement. 16.11 Unless otherwise approved by the CITY, if any part of the work under this Agreement is subcontracted, the "basic insurance requirements" set forth above shall be provided by, or on behalf of, all subcontractors even if the CITY has approved lesser insurance requirements for CONTRACTOR. 17. INDEMNITY. CONTRACTOR shall indemnify, defend, and hold harmless CITY, its officers, agents, and employees against any and all liability, claims, actions, causes of action or demands whatsoever against them, or any of them, before administrative or judicial tribunals of any kind whatsoever, arising out of, connected with or caused by negligence or willful misconduct of CONTRACTOR, CONTRACTOR's employees, agents, independent contractors, companies, or subcontractors in the performance of services under this Agreement except as limited by California Civil Code section 2782 or CITY's negligence or willful misconduct. INDEPENDENT CONTRACTOR'S AGREEMENT S:2OO2CONTRACTS\CALWATERN EWSENG(2) Pa~e 6 of 9 10January02 18. EXECUTION. This Agreement is effective upon execution. It is the product of negotiation and all parties are equally responsible for authorship of this Agreement. Section '1654 of the California Civil Code shall not apply to the interpretation of this Agreement. 19. NOTICES. All notices relative to this Agreement shall be given in writing and shall be personally served or sent by certified or registered mail and be effective upon actual personal service or depositing in the United States mail. The parties shall be addressed as follows, or at any other address designated by notice: CITY: CITY OF BAKERSFIELD CITY HALL 1501 Truxtun Avenue Bakersfield, California 93301 CONTRACTOR: CALIFORNIA WATER SERVICE CO. 1720 North First Street San Jose, CA 95112-4598 Attention: Michael Rossi, Chief Engineer 20. GOVERNING LAWS. The laws of the State of California will govern the validity of this Agreement, its interpretation and performance. Any litigation arising in any way from this Agreement shall be brought in Kern County, California. 21. FURTHER ASSURANCES. Each party shall execute and deliver such papers, documents, and instruments, and perform such acts as are necessary or appropriate, to implement the terms of this Agreement and the intent of the parties to this Agreement. 22. ASSIGNMENT. Neither this Agreement, nor any interest in it' may be assigned or transferred by any party without the prior written consent of all the parties. Any such assignment will be subject to such terms and conditions as CITY may choose to impose. 23. BINDING EFFECT. The rights and obligations of this Agreement shall inure to the benefit of, and be binding upon, the parties to the contract and their heirs, administrators, executors, personal representatives, successors and assigns, and whenever the context so requires, the masculine gender includes the feminine and neuter, and the singular number includes the plural. This Agreement may be executed in any number of counterparts, each of which shall be considered as an original and be effective as such. INDEPENDENT CONTRACTOR'S AGREEMENT S:2002CONTRACTS~CALWATERNEWSENG(2) lO January02 Page 7 of 9 24. TITLE TO DOCUMENTS. All documents, plans, drawings, maps, photographs and other papers or copies thereof prepared by the CONTRACTOR pertaining to those facilities as specified in Section 2 of this Agreement for which the CITY will pay the CONTRACTOR 100% of the costs of engineering and construction related services shall upon completion of the work become the property of the CITY. All documents, plans, drawings, maps, photographs and other papers or copies thereof prepared by the CONTRACTOR pertaining to those facilities as specified in Section 2 of this Agreement for which the CITY will pay the CONTRACTOR 50% or less of the costs of engineering and construction related services shall remain the property of the CONTRACTOR. CITY and CONTRACTOR shall have access to and shall be allowed to copy or obtain reproductions of all documents, plans, drawings, maps, photographs or other papers pertaining to this project, whether or not owned or controlled by CITY or CONTRACTOR, upon reasonable notice. 25. ACCOUNTING RECORDS. CONTRACTOR shall maintain accurate accounting records and other written documentation pertaining to all costs incurred in performance of this Agreement. Such records and documentation shall be kept at CONTRACTOR's office during the term of this Agreement, and for a period of three years from the date of the final payment hereunder, and said records shall be made available to CITY representatives upon request at any time during regular business hours. 26. CORPORATE AUTHORITY. Each individual signing this Agreement on behalf of entities represent and warrant that they are, respectively, duly authorized to sign on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Agreement. 27. TAX NUMBERS. CONTRACTOR's Federal Tax ID Number 94-0362795 CONTRACTOR is a corporation? Yes X No (Please check one.) 28. NON-INTEREST. No officer or employee of the CITY shall hold any interest in this Agreement (California Government Code section 1090). iNDEPENDENT CONTRACTOR'S AGREEMENT S:2002CONTRACTS\CALWATERNEWSENG(2) Page 8 of 9 10January02 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written. "CITY .... CONTRACTOR" CITY OF BAKERSFIELD CALIFORNIA WATER SERVICE CO. By:. By: HARVEY L. HALL Mayor Title: President and APPROVED AS TO FORM: BART J. THILTGEN By: City Attorney Title: Corporate Secretary By:. ALAN D. DANIEL Deputy City Attorney APPROVED AS TO CONTENT: WATER RESOURCES DEPARTMENT By: GENE BOGART Water Resources Manager COUNTERSIGNED: By: GREGORY J. KLIMKO Finance Director Attachment: Exhibit "A" INDEPENDENT CONTRACTOR'S AGREEMENT S:2002CONTRACTS\CALWATERN EWSENG(2) 10January02 [:)a. ge 9 o'1~ 9 WATER RESOURCES DEPARTMENT GENE BOGART, Manager FLORN CORE, Water Resources Director PATRICK E. HAUPTMAN, Superintendent 326-3006 STEVE LAFOND, Forecasting and Records 326-3007 MAURICE RANDALL, Business Manager 326-3704 KERN RIVER DISPATCHER 326-3716 May 1 O, 2001 sw. Kern County Water Agency P. O. Box 58 Bakersfield, CA 93301 Re: Proposed Northwest Bakersfield Treated Water Pipeline Dear Mr. Wulff: The City of Bakersfield Water Board has authorized the sending of this letter of request by action taken at its May 9, 2001 meeting. The City requests that discussions be opened on the feasibility of water supply and the construction a treated water pipeline from the Kern County Water Agency Improvement District No. 4 (ID#4) Treatment Plant to the Fairhaven and northwest area of the City of Bakersfield. As you are aware, northwest Bakersfield is rapidly developing into an urban setting and the single source of domestic water for the area is ground water that is plagued with quality problems. Both the City of Bakersfield and California Water Service Company continue to encounter declining quality from recently drilled wells, as well as from wells that have been in existence for many years. The northwest area was formerly a rural setting, consisting of sporadic oil and gas well operations, farming enterprises and large lot developments. It is felt that each of these land use situations have contributed to the degradation of groundwater. Generally speaking, the first few hundred feet of surface soils consist mainly of sands and silts, with a few clay layers that act as barriers to the downward flow of contaminated water, which may have contributed to much of the pesticide and nitrate contamination build-ups in the groundwater zone in this area. The City of Bakersfield, by letter to James Beck dated September 20, 1999, (copy attached) had previously requested consideration for a treated water connection from ID#4 to supply an off-peak, interruptible water supply for the City's Fairhaven and the northern portion of the Ashe systems. We have not received reply to this letter request. In order to address the groundwater quality issues in this area of ID#4 and the September 20, 1999 letter, the City requests ID#4 staff to initiate investigations to the feasibility of providing treated water, through ID#4 operations, to the northwest Bakersfield domestic water systems owned by the City of Bakersfield. This would include the aforementioned Fairhaven area, the northeastern Ashe system and the City's Riverlakes Ranch service areas. The City wishes to upgrade the September 20, 1999 letter to a year round supply request. All of these systems are within the boundaries of ID#4. 1000 BUENA VISTA ROAD · BAKERSFIELD, CALIFORNIA 93311 · (661) 326-3715 C. W. Wulff Page - 2 - May 10, 2001 The estimated water demand in the Fairhaven area will be approximately 1,500 acre feet per year. The Riverlakes Ranch area will need, at full build-out, approximately 4,800 acre feet per year. The northeastern Ashe system (which is at full development) could distribute 2,500 acre feet per year. This brings the total City of Bakersfield use and request for water for these areas to approximately 8,800 acre feet of treated water per year. The instantaneous flow rates during average daily demands and peak demands will be formulated as the feasibility investigation progresses. The source water for this treated water supply should be derived from allocated share of the State Water supplies available to ID#4. The investigation should also look into supplemental water supplies. The City owns fee land, easements and right-of-ways that could be available for transmission pipeline routes from the ID#4 Treatment Plant to the Fairhaven and northwest areas. These alignments include the shared interest of the Calloway Canal and the City's Kern River Canal & Irrigating Company "One Ditch" and "Two Ditch". These alignments are shown on the attached map. As part of this endeavor, the City requests that ID#4 investigate funding sources for the detailed feasibility studies, engineering and construction costs through grants and other financial arrangements obtained through ID#4. Such funding sources could be Proposition 13 (Water Bond 2000) or the ID#4 enterprise funds. The landowners and taxpayers within Fairhaven, Ashe and northwest area of ID#4 have been funding the improvement district since its inception. The time has arrived to benefit from that investment and request ID#4 help to improve the drinking water supply in these areas of the district. The City looks forward to moving ahead with this project. We will be available at your convenience to discuss this further. Sincerely, GENE BOGART Manager by ~ Director cc: City of Bakersfield Water Board Alan Tandy, City Manager Mel Byrd, California Water Service Mike Huhn, Vaughn Mutual Water Co. S:~.O01Letters~ID4Northwest Feeder CITY O F WATER ~SO~CES DEPARTMENT GE~ BOG~T, M~ager ~O~ CO~, Water Resources Director PA~CK E. ~T~, Su~fintcndent 326-3006 STE~ L~O~, Force.ting ~d Records 326-3007 ~CE ~L, Business M~ager 326-3704 ~ ~R DISPATC~R 326-3716 September 20, 1999 James Beck Kern County Water Agency P. O. Box 58 Bakersfield, CA 93301 RE: ID4 Tie-In to Ashe-Fairhaven System Dear Mr. Beck: The City has investigated the potential for a tie-in to the ID4 treated water supply with the goal of augmenting the ID4 program and to benefit the groundwater users of the district. It appears additional gains in treatment plant efficiencies could also be realized with such an off-peak, interruptible delivery to the City distribution system. The City is in the final design stages of its interconnection between its Ashe and Fairhaven divisions' water facilities. In general, the interconnection will allow a looping and back-up of the northeastern segment of the Ashe system with the entire industrial dominated Fairhaven division. An opportunity to connect to ID4 treated water could exist at two locations. At a point behind the Parkway Inn, near Freeway '99' and the Kern River ("Parkway" connection) a direct connection to the City's Ashe-Fairhaven line could effect a beneficial treated water delivery to the systems. An alternate point of connection near Buck Owens Blvd. and the Calloway Canal ("Buck Owens" connection) could also connect the systems, but has limitations. Assumptions that were used in the estimation of volumes and flow rates for the Parkway connection were: 1.)Treatment plant capacity becomes available mid-October through mid-April of each season, as the contractors are well off the peak season for deliveries; 2.)Line pressure of 80 psi at delivery point; & 3.)City's system demands are currently fully met with its groundwater production and distribution network in-place and available for immediate service in the event of plant delivery shortage. The City system demands to replace groundwater production during this off-peak period would be approximately 2,300 acre-feet total volume, peaking at 8.5 cubic feet per second or 3,850 gallons per minute, with an average demand or flow rate of 6.0 cfs or 2,700 gpm. A Buck Owens connection with the same assumptions would reduce the estimated demands and flow rates by approximately 50%, due to smaller water distribution mains and distance from the Ashe system. However, the City has a planned service area expansion immediately to the north 1000 BUENA VISTA ROAD · BAKERSFIELD, CALIFORNIA 93311 · (661) 326-3715 of the Fairhaven system whose demands have not been finalized. Based on proposed zoning for that area, the water requirements would be similar to the existing service area and create a factor to consider in furore water demands. Of course, these volumes and flow rates are estimates. We would be pleased to discuss in detail the contractual and operational criteria involved with moving ahead on this project. Sincerely, GENE BOGART Manager Flora Core Director WATER BOARD AGREEMENT NO. AGREEMENT NO. INDEPENDENT CONTRACTOR'S AGREEMENT THIS AGREEMENT is made and entered into on , by and between the CITY OF BAKERSFIELD, a municipal corporation, ("CITY" herein) and DODD INVESTIGATIONS, INC. ("CONTRACTOR" herein). RECITALS WHEREAS, CONTRACTOR represents CONTRACTOR is experienced and well qualified in the field of security; and WHEREAS, the CITY does not have expertise currently on staffto conduct security. NOW, THEREFORE, incorporating the foregoing recitals herein, CITY and CONTRACTOR mutually agree as follows: 1. SCOPE OF WORK. The scope of work is described as: CONTRACTOR agrees to provide or cause to be provided, during the term of this Agreement, the following guard services: a. CONTRACTOR shall provide guard services in accordance with the CITY's instructions provided by the Manager of the Water Resources Department of the City of Bakersfield with respect to the post or area to be covered by each guard employed, the number of guards to be employed and the days of the week, hours per day and hours of the day of guard service. CITY's representatives shall be entitled to make inspections, as necessary to assure performance. CONTRACTOR shall supply, at his expense, a motor vehicle equipped with a two way radio capable of transmitting and receiving calls with City Water Resources personnel. Compensation for any and all use of this patrol vehicle shall be deemed as part of the hourly rate charged by the contractor to the City. b. CONTRACTOR shall make every reasonable effort to take the appropriate action to protect life and property and enforce state statutes and CITY ordinances, but shall not carry or use firearms. CITY shall supply to CONTRACTOR a copy of all CITY ordinances, rules and regulations CONTRACTOR is expected to enforce as well as suggestions as to the method of enforcement with respect to each CITY ordinance, rule or regulation. CONTRACTOR is expected to have knowledge of state statutes and will follow state law and use reasonable enforcement methods when enforcing state law. INDEPENDENT CONTRACTOR'S AGREEMENT S:~2002 CONTRACTS\DoddAgmt.wpd - Updated - January 2, 2001 Pa~e 1 of 9 The scope of work shall include all items and procedures necessary to properly complete the task CONTRACTOR has been hired to perform, whether specifically included in the scope of work or not. 2. COMPENSATION. Compensation for all work, services or products called for under this Agreement shall consist of a total of payments not to exceed Fifty Thousand Dollars ($50,000.00) annually which shall be paid as follows: Services shall be provided at the rate of $26.43 per hour. CONTRACTOR will submit invoices on or before the fifty (5th) day of the month for all services rendered the previous month. CITY will make payments within thirty (30) days after receipt of said invoices. The compensation set forth in this section shall be the total compensation under this Agreement including, but not limited to, all out-of-pocket costs and taxes. CITY shall pay only the compensation listed unless otherwise agreed to in writing by the parties. Except as set forth in paragraph 5, "Alterations and Extras" the rate of compensation shall be adjusted yearly, at the anniversary date of this Agreement, upward or downward. The base for computing the adjustment is the Wholesale Price Index (WPI), now called Producer Price Index (PPI), for all commodities as published by the U. S. Department of Labor's Bureau of Labor Statistics. The base figure for the index date is 1982. The index for the adjustment date shall be computed as a percentage of the base figure. If the described index is no longer published, another generally recognized as authoritative shall be substituted by Agreement of the parties. The WPI used shall be the final index figure for the month of May, and no preliminary figures shall be used. In no event shall the minimum compensation be reduced below $26.43 per hour. The compensation set forth in this section shall be the total annual compensation under this Agreement including, but not limited to, all out-of pocket costs and taxes. CITY shall pay only the compensation listed unless otherwise agreed to in writing by the parties. Annual compensation shall not exceed Fifty Thousand Dollars ($50,000.00) without approval of City of Bakersfield Water Board. 3. PAYMENT PROCEDURE. CONTRACTOR shall be paid for services rendered after receipt of an itemized invoice for the work completed and approved by CITY in accordance with the terms of this Agreement. Payment by CITY to CONTRACTOR shall be made within thirty (30) days after receipt and approval by CITY of CONTRACTOR's itemized invoice. 4. KEY PERSONNEL. At request of CITY, CONTRACTOR shall name all key personnel to be assigned to the work set forth herein. CONTRACTOR shall provide background for each of the key personnel including, without limitation, resumes and work INDEPENDENT CONTRACTOR'S AGREEMENT S:~002 CONTRACTS\DoddAgmt.wpd - Updated - January 2, 2001 Page 2 of 9 experience in the type of work called for herein. CITY reserves the right to approve key personnel. Once the key personnel are approved CONTRACTOR shall not change such personnel without the written approval of CITY. 5. STARTING WORK. CONTRACTOR shall not begin work until authorized to do so in writing by CITY. No work will be authorized until the contract has been fully executed by CONTRACTOR and CITY. 6. INCLUDED DOCUMENTS. Any bid documents, including, without limitation, special provisions and standard specifications and any Request for Proposals, Request for Qualifications and responses thereto relating to this Agreement are incorporated by. reference as though fully set forth. 7. NO WAIVER OF DEFAULT. The failure of any party to enforce against another party any provision of this Agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time, and shall not serve to vary the terms of this Agreement. 8. LICENSES. CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits and approvals which are legally required for CONTRACTOR to practice its profession. 9. STANDARD OF PERFORMANCE. All work shall be performed in conformity with all legal requirements and industry standards observed by a competent practitioner of the profession in California. 10. MERGER AND MODIFICATION. This contract sets forth the entire Agreement between the parties and supersedes all other oral or written representations. This contract may be modified only in a writing approved by the City Council and signed by all the parties. 11. EXHIBITS. In the event of a conflict between the terms, conditions or specifications set forth in this Agreement and those in exhibits attached hereto, the terms, conditions, or specifications set forth in this Agreement shall prevail. All exhibits to which reference is made in this Agreement are deemed incorporated in this Agreement, whether or not actually attached. 12. TERMINATION FOR CAUSE. If at any time CITY becomes dissatisfied with the performance of CONTRACTOR under this Agreement, CITY may terminate this Agreement on ten (10) days written notice. Written notice shall be given pursuant to the notices paragraph of this Agreement. In the event of early termination, CONTRACTOR shall be compensated only for work satisfactorily completed up to the date of termination and delivered to and accepted by CITY. 13. COMPLIANCE WITH ALL LAWS. CONTRACTOR shall, at CONTRACTOR's sole cost, comply with all of the requirements of Municipal, State, and INDEPENDENT CONTRACTOR'S AGREEMENT S:~2002 CONTRACTS~DoddAgmt,wpd - Updated - January 2, 2001 Pa~e 3 of 9 Federal authorities now in force, or which may hereafter be in force, pertaining to this Agreement, and shall faithfully observe in all activities relating to or growing out of this Agreement all Municipal ordinances and State and Federal statutes, rules or regulations, and permitting requirements now in force or which may hereafter be in force including, without limitation, obtaining a City of Bakersfield business tax certificate (Bakersfield Municipal Code Chapter 5.02) where required. 14. INDEPENDENT CONTRACTOR. This Agreement calls for the performance of the services of CONTRACTOR as an independent contractor. CONTRACTOR is not an agent or employee of the CITY for any purpose and is not entitled to any of the benefits provided by CITY to its employees. This Agreement shall not be construed as forming a partnership or any other association with CONTRACTOR other than that of an independent contractor. 15. DIRECTION. CONTRACTOR retains the right to control or direct the manner in which the services described herein are performed. 16. EQUIPMENT. CONTRACTOR will supply all equipment, tools, materials and supplies necessary to perform the services under this Agreement. 17. INSURANCE. In addition to any other insurance or bond required under this Agreement, the CONTRACTOR shall procure and maintain for the duration of this Agreement the following types and limits of insurance ("basic insurance requirements") herein: 17.1 Automobile liability insurance, providing coverage on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than One Million Dollars ($1,000,000) per occurrence; and the policy shall: 17.1.1 Provide coverage for owned, non-owned and hired autos. 17.1.2 Contain an additional insured endorsement in favor of the City, its mayor, council, officers, agents, employees and volunteers. 17.2 Broad form commercial general liability insurance, ISO form CG00 01 11 85 or 88 providing coverage on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than One Million Dollars ($1,000,000) per occurrence; and the policy shall: INDEPENDENT CONTRACTOR'S AGREEMENT S:~002 CONTRACTS\DoddAgmt.wpd - Updated - Januar~ 2, 2001 Page 4 of 9 17.2.1 Provide contractual liability coverage for the terms of this Agreement. 17.2.2 Contain an additional insured endorsement in favor of the City, its mayor, council, officers, agents, employees and volunteers. 17.3 Workers' compensation insuranc, with statutory limits and employer's liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence; and the policy shall contain a waiver of subrogation and additional insured endorsement in favor of the City, its mayor, council, officers, agents, employees and volunteers. 17.4 All policies required of the CONTRACTOR shall be primary insurance as to the CITY, its mayor, council, officers, agents, employees, or designated volunteers and any insurance or self-insurance maintained by the CITY, its mayor, council, officers, agents, employees, and designated volunteers shall be excess of the CONTRACTOR's insurance and shall not contribute with it. Additional insured endorsement shall use ISO from CG20 10 11 85 (in no event with an edition date later than 1990). 17.5 Except for workers' compensation, insurance is to be placed with insurers with a Bests' rating of no less than A:VII. Any deductibles, self-insured retentions or insurance in lesser amounts, or lack of certain types of insurance otherwise required by this Agreement, or insurance rated below Bests' A:VII, must be declared prior to execution of this Agreement and approved by the CITY in writing. 17.6 All policies shall contain an endorsement providing the CITYwith thirty (30) days written notice of cancellation or material change in policy language or terms. All policies shall provide that there shall be continuing liability thereon, notwithstanding any recovery on any policy. Copies of policies shall be delivered to CITY on demand. 17.7 The insurance required hereunder shall be maintained until all work required to be performed by this Agreement is satisfactorily completed as evidenced by written acceptance by the CITY. 17.8 The CONTRACTOR shall furnish the City Risk Manager with a certificate of insurance and required endorsements evidencing the insurance required. The CITY may withdraw its offer of contract or cancel this contract if certificates of insurance and endorsements required have not been provided prior to the execution of this Agreement. 17.9 Full compensation for all premiums which the CONTRACTOR is required to pay on all the insurance described herein shall be considered as included in the prices paid for the various items of work to be performed under the Agreement, and no INDEPENDENT CONTRACTOR'S AGREEMENT S:~2002 CONTRACTS\DoddAgmt.wpd - Updated - January 2, 2001 Pa~e 5 of 9 additional allowance will be made therefor or for additional premiums which may be required by extensions of the policies of insurance. 17.10 It is further understood and agreed by the CONTRACTOR that its liability to the CITY shall not in any way be limited to or affected by the amount of insurance obtained and carried by the CONTRACTOR in connection with this Agreement. 17.11 Unless otherwise approved by the CITY, if any part of the work under this Agreement is subcontracted, the "basic insurance requirements" set forth above shall be provided by, or on behalf of, all subcontractors even if the CITY has approved lesser insurance requirements for CONTRACTOR. 17.12 CONTRACTOR shall provide, when required by CITY, performance, labor and material bonds in amounts and in a form suitable to CITY. CITY shall approve in writing all such security instruments prior to commencement of any work under this Agreement. 18. INDEMNITY. CONTRACTOR shall indemnify, defend, and hold harmless CITY, its officers, agents and employees against any and all liability, claims, actions, causes of action or demands whatsoever against them, or any of them, before administrative or judicial tribunals of any kind whatsoever, arising out of, connected with, or caused by CONTRACTOR, CONTRACTOR's employees, agents, independent contractors, companies, or subcontractors in the performance of, or in any way arising from, the terms and provisions of this Agreement whether or not caused in part by a party indemnified hereunder, except as limited by California Civil Code section 2782 or CITY's sole active negligence or willful misconduct. 19. EXECUTION. This Agreement is effective upon execution. It is the product of negotiation and all parties are equally responsible for authorship of this Agreement. Section 1654 of the California Civil Code shall not apply to the interpretation of this Agreement. 20. NOTICES. All notices relative to this Agreement shall be given in writing and shall be personally served or sent by certified or registered mail and be effective upon actual personal service or depositing in the United States mail. The parties shall be addressed as follows, or at any other address designated by notice: CITY: CITY OF BAKERSFIELD WATER RESOURCES DEPARTMENT 1000 Buena Vista Road Bakersfield, California 93311 CONTRACTOR: GERALD DODD DODD INVESTIGATIONS, INC. 2328 Quincy Drive Bakersfield, CA 93306 INDEPENDENT CONTRACTOR'S AGREEMENT S:~2002 CONTRACTS\DoddAgrnt wpd - Updated - Janua~/2, 2001 Pa~e 6 of 9 21. GOVERNING LAW. The laws of the State of California will govern the validity of this Agreement, its interpretation and performance. Any litigation arising in any way from this Agreement shall be brought in Kern County, California. 22. FURTHER ASSURANCES. Each party shall execute and deliver such papers, documents, and instruments, and perform such acts as are necessary or appropriate, to implement the terms of this Agreement and the intent of the parties to this Agreement. 23. ASSIGNMENT. Neither this Agreement, nor any interest in it may be assigned or transferred by any party without the prior written consent of all the parties. Any such assignment will be subject to such terms and conditions as CITY may choose to impose. 24. BINDING EFFECT. The rights and obligations of this Agreement shall inure to the benefit of, and be binding upon, the parties to the contract and their heirs, administrators, executors, personal representatives, successors and assigns, and whenever the context so reql~ires, the masculine gender includes the feminine and neuter, and the singular number includes the plural. This Agreement may be executed in any number of counterparts, each of which shall be considered as an original and be effective as such. 25. TITLE TO DOCUMENTS. All documents, plans, and drawings, maps, photographs, and other papers, or copies thereof prepared by CONTRACTOR pursuant to the terms of this Agreement, shall, upon preparation, become the property of the CITY. 26. ACCOUNTING RECORDS. CONTRACTOR shall maintain accurate accounting records and other written documentation pertaining to all costs incurred in performance of this Agreement. Such records and documentation shall be kept at CONTRACTOR's office during the term of this Agreement, and for a period of three years from the date of the final payment hereunder, and said records shall be made available to CITY representatives upon request at any time during regular business hours. 27. CORPORATE AUTHORITY. Each individual signing this Agreement on behalf of entities represent and warrant that they are, respectively, duly authorized to sign. on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Agreement. 28. TAX NUMBERS. CONTRACTOR's Federal Tax ID Number 95-3714195 CONTRACTOR is a corporation? Yes X No (Please check one.) 29. NON-INTEREST. No officer or employee of the CITY shall hold any interest in this Agreement (California Government Code section 1090). INDEPENDENT CONTRACTOR'S AGREEMENT S:~2002 CONTRACTS\DoddAgmt.wpd - Updated - January 2, 2001 Page 7 of 9 30. TERM: This Agreement shall commence upon the above effective date and " terminate one (1) year from then unless sooner terminated as herein provided. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written. "CITY" "CONTRACTOR" CITY OF BAKERSFIELD DODD INVESTIGATIONS, lNG. By: By: HARVEY L. HALL Mayor Title: APPROVED AS TO FORM: BART J. THILTGEN City Attorney By: ALAN D. DANIEL Deputy City Attorney Insurance: APPROVED AS TO CONTENT: WATER RESOURCES DEPARTMENT By: GENE BOGART Water Resources Manager MORE SIGNATURES ON FOLLOWING PAGE INDEPENDENT CONTRACTOR'S AGREEMENT S:~2.002 CONTRACTS\DoddAgmt.wpd - Updated - January 2, 2001 Pa~e 8 of 9 - COUNTERSIGNED: By: GREGORY J. KLIMKO Finance Director INDEPENDENT CONTRACTOR'S AGREEMENT S:~2002 CONTRACTS~DoddAgmt.wpd - Updated - January 2, 2001 Page 9 of 9 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION, CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) NORTH KERN WATER STORAGE DISTRICT vs KERN DELTA WATER DISTRICT, et al, TULARE COUNTY SUPERIOR COURT CASE N° 96-172919.