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HomeMy WebLinkAbout05/07/80 AGENDA WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, MAY 7, 1980 4:00 P.M. Call meeting to order Roll Call - Board Members: Barton, Chairman; Payne, Ratty, Bergen, Hoagland 1. Approve minutes from regular meeting of April 16, 1980. 2. Scheduled public statements. 3. Adjourn regular meeting to Thursday, May 8, 1980, at 8:30 A.M. in the City Hall Caucus Room. AGENDA WATER BOARD - CITY OF BAKERSFIELD ADJOURNED REGULAR MEETING THURSDAY, MAY 8, 1980 8:30 A.M. Call'meeting to order Roll Call - Board Members: Barton, Chairman; Payne, Ratty, Bergen, Hoagland 1. Approve minutes from regular meeting of Wednesday, May 7, 1980. 2. Scheduled public statements. 3. Letter from Water Board to all City contractors Boards requesting advance notice of all meetings and agendas therefor, also, copies of minutes of all meetings. - FOR BOARD APPROVAL AND AUTHORIZE CHAIRMAN TO SIGN. 4. City of Bakersfield participation in proposed study for enhancement and optimization of Kern County Water Supplies. - FOR BOARD ACTION. 5. Letter from Thomas M. Stetson dated April 28, 1980, regarding possible water exchanges by City of Bakersfield's Kern River Contractors. - BOARD TO RECEIVE AND FILE. 6. Letter from Stanley C. Hatch regarding use of City of Bakersfield water spreading properties by other public entities. - FOR BOARD CONSIDERATION. 7. Letter from Rosedale-Rio Bravo Water Storage District dated April 21, 1980, regarding conjunctive use within City's 2800 acre spreading basin. - BOARD TO RECEIVE AND File. 8. Letter from Henry C. Garnett dated April 10, 1980, regarding Kern County Water Agency construction of percolation ponds on City of Bakersfield properties. - BOARD TO RECEIVE AND FILE. 9. Staff Comments 10. Board Comments 11. Adjournment MINUTES WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, APRIL 16, 1980 4:00 P.M. The meeting was called to order by Vice-Chairman Payne in the City Hall Caucus Room. The secretary called the roll as follows: Present: Payne, Ratty, Bergen, Hoagland Absent: Barton Staff Present: Bo~art, Chafin, Hansen, Hostmyer The minutes from the regular meeting of Wednesday, April 2, 1980, and the minutes from the regular adjourned meeting of April 3, 1980, were approved as presented. At this time Agricultural Water Superintendent Gene Bogart pre- sented the Agricultural Water Enterprise Operating Budget and Proposed Capital Outlay Program for 1980-1981 to the board for consideration. After a brief discussion by board and staff Mr. Ratty made a motion that the board approve the budget and refer it to the City Council for final approval. The motion was passed. Board Comments At this time Mr. Bergen suggested that copies of the minutes for the Water Board meetings of April 2, 1980 and April 3, 1980, be sent to individuals Directors of the Board of Olcese Water District and, also, to Mr. George Nickel. There being no further business to come before the board, Vice- Chairman Payne adjourned the meeting at 4:06 P.M. James J. Barton,Chairman City of Bakersfield Water Board Linda Hostmyer, Secretary City of Bakersfield Water Board , ROSEDALE RIO BRAVO i WATER STORAGE DISTRICT ~ %~jj~ ~~r~/~/ 2623"F"St.,SuiteL P.O. aox867 ·Bakersfield, Cali fo rnia93302 · 325-4797 April 21, 1980 City of Bakersfield Water Board City Hall Bakersfield, CA 93301 Gentlemen: As you will recall, a meeting in regard generally to the subject of tke Kern River was held by most of the interested parties on August 2, 1979. As a~ result of that meeting, it was ~eciced that the parties would submit in writing proposals and cor~.ents in regard to the proposed Kern River Conjunctive Lse Program. Eosedale submitted its comment under date of August 30, 1979. It was our understanding that a second meeting would be scheduled around the end of Septeniber, 1979. However, to date that meeting has not been held. ,Recently the local newspaper quoted city officials as insist- ing that ~r. George ~[ickel move forward with any agreement between the City and Mr. Nickel which would call for ~[r. Nickel to ariil certain water wells on the City's 2800 acre spreading ground, presumably to be used for the exporta- tion of water to what has con-~only been known as the Rio- Bravo Annexation to the City. Rosedale considers that the program reported in the ne%~spaper woulG violate the spirit expressed at the August 2, 1979 meeting. We would ask and suggest t?~at the meeting proposed for last Septe~nber be rescheduled with the hope that a Conjunctive Use Program for the River, satisfactory to all parties can be agreed upon prior to any physical implemen- tation of the agreement ketween ~i'~e City and Mr. Nickel. Very truly yours, District Manager MC:ck ~ -~ TETSON ENGINEERS [NC, CIVIL AND CONSULTING ENGINEERS 3104 East Garvey Avenue 550 Kearny Street - Suite ~:~JE)S 5 0 West Covina, California 91791 Ap r il 2 8 ~ "] 9 8 0 San Francisco, California 94108 (213) 967-6202 (415) 781-4297 REPLYTO: San Francisco Mr. John Chafin, Hanager Water Department City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Re: Proposed Study for Enhancement and Optimization of Kern County Water Supplies. Dear John: As you know, the Kern County Water Districts Advisory Committee has sought and received a proposal for the conduct of an engineering study to determine the feasibility of enhancement and optimization of the use of water supplies available to the San Joaquin Valley portion of Kern County. It is now contem- plated that a consortium of four firms, known as Associated En- gineering Consultants, will perform that study and render a draft report and final report thereon within 13 months of the.date of receipt of written notice to procee~ at a total cost of $225,000. The four firms comprising Associated Engineering Consultants are: Bookman-Edomonston Engineering, Inc., Boyle Engineering Corporation, Stetson Engineers Inc., and Walter G. Schulz, Consulting Engineer. In my opinion it is very important that the City of Bakersfield participate in this study. The City has an on-going water spreading and recovery program in the Kern River Fan area with local water districts now participating and with the objec- tive of including other water districts in the program in the future. The City's water spreading properties are the largest in the County and will undoubtedly be important to any program for enhancement of water supplies in Kern County. Some of the objectives of the proposed study are the same as, or similar to, those which the City has set out to achieve--namely, the enhancement of water supplies through greater use of the groundwater basin to store supplemental water when ~TETSON'ENGINEERS I~C, Mr. Cha fin April 28, 1980 Page Two availabe. In my view, this makes it important that the City participate and furnish its input to the Kern County Water Dis- tricts Advisory Committee. That Committee will meet monthly to receive and discuss progress reports on the study. It is proposed to finance the study as follows: 1. The Kern County Water Agency will finance 2S percent of the cost--$56,250.00. 2. The remaining 75 percent will be financed by the participating water districts at a rate of $Q.35 per irrigated acre, or an equivalent for H&I parti- cipants. There is almost 4,000 acres of City-owned land in the Kern Delta Water District, but Kern Delta is listed as a parti- cipant in the study so it is not necessary for the City to con- sider that area. Host of the City is within Improvement District No. 4. Since Improvement District No. 4 of the Kern County Water Agency is listed as a participant, and since Olcese Water Dis- trict should participate to cover its portion of the Rio Bravo Annexation Area, the City should finance $1,000.00 based on its water spreading areas outside of Improvement District No. 4. Such areas comprise something less than 3,000. acres and at $0.35 per acre this would approximate $1,000.00. I recommend that the City of Bakersfield Water Board take favorable action on this program. Sincerely, ThOmas M. Stetson TMS'bw cc' Stanley C. Hatch Kern County Water Districts ADVISORY COMMITTEE April 25, 1980 Mr. James J. Barton City of Bakersfield 1501Truxtun Avenue Bakersfield, CA 93301 Dear Curly, "OPTIMIZATION AND ENHANCEMENT STUDY" Enclosed is.a copy of the proposed contract between the financial participants and the engineering consortium on the "Optimization Study". We would appreciate your early review and comments as soon as possible. Very truly yours, KERN COUNTY WATER DISTRICTS ADVISORY COMMITTEE Secretary Enclosure cc - Mr. John Chafin 4-29-80 cc: T. Payne D. Ratty H. Bergen K. Hoagland DRAFT 4/18/80 CONTRACT BETWEEN THE WATER DISTRICTS ADVISORY COMMITTEE OF KERN COUNTY AND THE ASSOCIATED ENGINEERING CONSULTANTS This contract made this day of , 1980, by and between the Water Districts Advisory Committee of Kern County, hereinafter referred to as "COMMITTEE" and the Associated Engineering Consultants (Bookman- Edmonstron Engineering, Inc., Boyle Engineering Corporation, Stetson Engineers, Inc. and Walter G. Schulz, Consulting Engineer), hereinafter referred to collectively as "CONSULTANT." WI TNESSETH: WHEREAS, the firms of Bookman-Edmonston Engineering, Inc., Boyle Engineering Corporation, Stetson Engineers, Inc. and Walter G. Schulz, Consulting Engineer, have associated themselves as CONSULTANTS to perform the services specified in this Contract; WHEREAS, there has been prepared a scope of an engineering investi- gation entitled "A PROGRAM TO DETERMINE THE FEASIBILITY OF ENHANCEMENT AND OPTIMIZATION OF THE USE OF WATER SUPPLIES AVAILABLE TO THE SAN JOAQUIN VALLEY PORTION OF KERN COUNTY," dated February 25, 1980, hereinafter referred to as "INVESTIGATION"; WHEREAS, COMMITTEE, consisting of representatives acting on behalf of their respective districts in the San Joaquin Valley portion of Kern County has reviewed the INVESTIGATION and desire to employ CONSULTANT to perform the required services for said INVESTIGATION; NOW, THEREFORE, IT IS MUTUALLY AGREED by the parties as follows: I. EMPLOYMENT COMMITTEE hereby employs CONSULTANT as an independent contractor to furnish the services covered by this Contract upon the terms and conditions specified herein, and CONSULTANT accepts such employment. II. SCOPE OF WORK The Scope of Work to be performed by CONSULTANT is set forth in Appendix A. The Scope of Work may be modified to cover additional phases of investigation through the mutual consent of the parties hereto. To perform the Scope of Work specified herein, CONSULTANT will require the cooperation of Districts within the San Joaquin Valley portion of Kern County to provide existing data relative to each District. Representatives of Distr~cts on COMMITTEE will assist CONSULTANT in securing such cooperation from their respective Districts. III. TIME SCHEDULE CONSULTANT agrees to deliver for review and comment the draft report specified in Item 16 of Appendix A within 300 days from the date of receipt of written notice to proceed with the services specified herein by COMMITTEE. Comments on the draft report will be submitted to CONSULTANT within 45 days after submission of draft report and the final report specified in Item 17 of Appendix A will be delivered by CONSULTANT within 45 days after receipt of Comments. IV. COMPENSATION CONSULTANT agrees to perform the services specified in the Scope of Work for the Lump Sum of $225,000, payable in monthly progress payments of $20,000 per month on presentation of invoices by the CONSULTANT; tb~ balance of $25,000 will be payable upon presentation of the final report specified in -2- · bhe Scope of Work. CONSULTANT will submit to COMMITTEE monthly invoices which will be accompanied by a written progress report setting forth work accomplished to date, and work planned for the ensuring months. CONSULTANT's compensation may be modified by mutual agreement of the parties in the event the Scope of Work is modified as provided in Paragraph II of this Contract. V. ASSIGNMENT CONSULTANT will not make assignment of this Contract to a third party. VI. TERMINATION COMMITTEE may terminate this Contract at any time upon 30 days written notice to CONSULTANT. In the event of termination, the CONSULTNAT shall be compensated for all work performed to the date of termination. VII. MISCELLANEOUS A. CONSULTANT shall designate a Project Director who at all times shall represent CONSULTANT before the COMMITTEE on all matters relating to this Contract. Burt A. Babcock shall be the Project Director unless he is removed or replaced at the discretion of CONSULTANT or at the request of COMMITTEE. B. CONSULTANT shall operate as an independent contractor and not as an agent or employee of COMMITTEE or any of the respective water districts participating in this Contract and nothing in this Contract shall be con- strued to be inconsistent with this relationship or status. C. Notices provided for in this Contract shall be mailed or de- livered to the parties at the following addresses: 1. COMMITTEE c/o Kern County Water Agency P. O. Box 58 4114 Arrow Street Bakersfield, CA 93302 -3- 2. CONSULTANT c/o Associated Engineering Consultants Bert A. Babcock, Project Director P. O. Box 1961 345 Chester Avenue Bakersfield, CA 93301 IN WITNESS WHEREOF, th~ parties hereto have executed this Contract as of the date first hereinabove written. COMMITTEE: Arvin-Edison Water Storage District Belridge Water Storage District Berrenda Mesa Water District Buena Vista Water Storage District Cawelo Water District Delano-Earlimart Irrigation District Henry Miller Water District Kern Delta Water District Kern-Tulare Water District Lost Hills Water District North Kern Water Storage District Rag Gulch Water District Rosedale-Rio Bravo Water Storage Dist. Semi-Tropic Water Storage District Shafter-Wasco Irrigation District So. San Joaquin Municipal Utility Dist. Wheeler Ridge-Maricopa Water Storage Dt. Kern County Water Agency City of Bakersfield Tehanchapi-Cummings County Water Dist. Tejon-Castac Water District Improvement District No.' 4 of Kern County Water Agency West Kern County Water District -4- CONSULTANT: Bookman-Edmonston Engineering, Inc. Boyle Engineering Corporation Stetson Engineers, Inc. Walter G. Schulz, Consulting Engineer -5- TABLE 1 IRRIGATED ACREAGE (And Equivalents) IRRIGATED ACRES DISTRICT (1,,000,) Arvin-Edison Water Storage District 110 Belridge Water Storage District 46 Berrenda Mesa Water District 44 Buena Vista Water Storage District 41 Cawelo Water District 38 Delano-Earlimart Irrigation District 8 Henry Miller Water District 22 ~Kern Delta Water District 108 Kern-Tulare Water District 15 Lost Hills Water District 54 North Kern Water Storage District 90 Rag Gulch Water District 3 Rosedale-Rio Bravo Water Storage District 35 Semi-Tropic Water Storage District 123 Shafter-Wasco Irrigation District 33 So. San Joaquin Municipal Utility District 48 Wheeler Ridge-Maricopa Water Storage District 109 Tehachapi-Cun~nings County Water District 30 Tejon-Castac Water District 2 Improvement District No. 4 65 West Kern County Water District 57 City of Bakersfield -- TOTAL 1,081 APPENDIX A SCOPE OF WORK FOR PROGRAM TO DETERMINE THE FEASIBILITY OF ENHANCEMENT AND OPTIMIZATION OF THE USE OF WATER SUPPLIES AVAIEABLE TO THE SAN JOAQUIN VALLEY PORTION OF KERN COUNTY It is agreed that this initial evaluation and development of a program would be done without regard to any institutional or political con- straints. During the course of the investigation, input from the water community will be solicited. Nothing is to be proposed that would impair an existing water supply or that would raise costs of existing water supplies without commensurate benefits. If the program, as developed or parts thereof, were to exhibit sufficient merit, then a second phase may be undertaken. This second phase may be conducted by affected districts either individually or collectively and would address itself to developing necessary solutions to institutional problems and matters of financial equity required for implementation of the program. Specific items of work to be accomplished would include the following: 1. Determination of present and future requirements for water. 2. Determination of the water supplies available to the County under present conditions from state, federal and local sources. 3. Preparation of estimates of the present and probable future deficiencies in water supply, both for lands outside of the ground water basin and those overlying the basin, which deficiency in the latter instance would be manifested in overdraft and lowering of ground water levels. 4. Evaluation of the possibility of diverting additional supplies of water from the Delta through the California Aqueduct. 5. Evaluation of the possibility of increasing the supply of federal water delivered to the County. 6. Evaluation of the feasibility of retaining additional Kern River water which escapes from the County in wet years. 7. The identification of existing facilities required for utilization of the increased supply and their adequacy for this purpose. 8. The identification of any new facilities that would be required. 9. Determination of the location and amount of dewatered storage capacity available for storage of additional waters. 10. Identification of the location and area of absorptive lands suitable for ground water recharge and rates of percolation that might be expected. ll. Consideration of the problems of integrating additional water into the present "Kern County Water Supply System", and evaluation of the possibility of energy savings through a redistribution of available supplies through exchange. 12. Identification of drainage and waste water problems and possibilities for utilization thereof. 13. Identification of present institutional constraints. -2- 14. Development of possible criteria for distribution of program costs in accordance with benefits. 15. Estimates of capital and annual costs of the program. 16. Preparation and delivery of 25 copies of a draft report summarizing investigations and proposed programs for review and comment by the COMMITTEE. 17. Preparation of a final report and delivery of 25 copies thereof along with duplicate originals of manuscript and maps. 18. CONSULTANT will attend and make program reports at monthly meetings of COMMITTEE. ; ~ ETSON ENGINEERS INC, CIVIL AND CONSULTING ENGINEERS 3104 East Garvey Avenue 550 Kearny Street - Suite ~ 5 5 0 West Covina, California 91791 Apr i i 2 8, 1 9 8 0 San Francisco, California 94108 (213) 967-6202 (415) 781-4297 REPLYTO: San Francisco Mr. John Chafin, Manager Water Department ~ City of Bakersfield 1501 Truxtun Avenue Bakersfield, CA 93301 Re: Possible Water Exchanges by City of Bakersfield's Kern River Contractors Dear John: I had previously furnished you with a copy of a mem- orandum to files, dated March 31, 1980, regarding subject. You have re~estedthat I put that memorandum~in letter form and I do so herein. In each of the City's Kern River water delivery con- tracts, entered into in 1976, there are provisions relating to the place of use of such Kern River water and in some of the contracts there are provisions for possible exchanges of water. The exchange provisions were put into the contracts solely for the purpose of enabling those contractors who did not have faci- lities for actual physical delivery of the Kern River water to their service areas to enter into exchanges to facilitate such deliveries. Contract 76-89 with the North Kern Water Storage Dis- trict provides, in Section 8.1 thereof, that: "Excepting for short-term transactions as the District determines are benefi- cial for its-adopted Project purposes, District shall utilize the water delivered hereunder subject to the following condi- tions: "a. The water shall be used only for irrigation, spreading, stock-water and incidental agricultural purposes within the boundaries of the district; and "b. District shall not sell said water for use other'than within the existing boundaries of District without prior written notice to and approval of City, which approval shall not be unreasonably withheld." STETS~)N EN(SINEERS~INC, Mr. Chafin April 28, 1980 Page Two In agreement number 76-62 with the Cawelo ITater Dis- trict, Section 7.1, Use of Water, provides in part as follows: "District shall utilize the water delivered here- under subject to the following conditions: "a. The water shall be used only for irrigation, spreading, stock-water and incidental agricultural purposes within the boundaries of District. "b. District shall not sell said water for use other than within the existing Kern County portions of the boundaries of District without prior written notice to and approval of City, which approval shall not be unreasonably withheld. "c. Water sold by City and purchased by District hereunder may be freely exchanged with other such long-term firm water contractors of City or with Friant- Kern Canal contractors within Kern County, with Arvin- Edison Water Storage District, with Shaftor-Wasco Irri- gation District or with the Kern County Water Agency or any Improvement District thereof. District shall not sell such water to or exchange the same with any other person or entity without prior written approval of City. All said water or that exchanged therefore shall be used only on lands within Kern County and within the boundaries of District." Agreement Number 76-61 with Kern Tulare Water District contains exactly the same language in Section 7.1, Use of Water, as set forth above for the Cawelo Water District. Agreement Number 76-63 with Rag Gulch Water District, in Section 7.1, Use of Water, contains exactly the same language as set forth above for Cawelo Water District. Agreement Number 76-89 with Rosedale Rio-Bravo Water Storage District states in article II, Section 2.1(i)(8), Use of Water, as follows: "District shall utilize the Hiscellaneous Water delivered hereunder subject to the following conditions: "(aa) The water shall be used only for ground water replenishment within the boundaries of District. STETSO~ ENGINEERS I~C. Hr. Chafin April 28, 1980 Page Three "(bb) District shall not sell such water to or exchange the same with any other person or entity with- out prior written approval of City." In addition to the specific language in those agree- ments, it should be pointed out that ~e only purpose of provid- ing conditions for an exchange of the City's Kern River water was to accomodate those districts which did not have their own facilities or access to the Kern River to make direct diversions to their districts of such Kern River water. The exchange pro- visions were included in order that such districts could exchange Kern River wmter, primarily for Friant-Kern Canal water, with such districts as the Arvin-Edison Water Storage District so that District and the City's contracting districts could take a like amount of water from the Friant-Kern Canal for direct delivery into those district's service areas. There is no question in my mind that throughout the negotiations leading to the execution of these agreements the sole intent of the exchange provisions was to accomodate the City's contractors in being able to use the contracted for Kern River water, directly or indirectly, within their districts. There was certainly no intent that those districts would be able, through exchanges, to supply the City's Kern River water in- directly for use in far distant parts of the County and make a profit on such exchanges. As I understand the situation now, certain of the City's contractors have been discussing with the Kern County Water Agency 'possibilities of exchanging the City's Kern River contractural water with the Kern County Water Agency, probably Improvement District No. 4, and thus enabling State Project Water to be di- verted from the Calfiornia Aqueduct for use by the oil industry in the west side of the valley. This is not really an exchange of Kern River water supplied by the City for a water supply for use within the City's contracting district. It would be a sale of the City's Kern River water whereby such districts could make a profit and the districts would not supply the water they con- tracted for to the users within their districts. Sincerely, Thomas M. Stetson TMS: bw cc: Stanley C. Hatch, Esq. RIO BRAVO 2623 F St., Suite P.O. Box 867 · Bakersfield, California 93302 * 325-4797 April 21, 1980 City of Bakersfield Water Board City Hall Bakersfield, CA 93301 Gentlemen: As you will recall, a meeting in regard generally to the subject of the Kern River was held by most of the interested parties on August 2, 1979. As a result of that meeting, it was aeciced that the parties would submit in writing proposals and cor~ents in regard to the proposed Kern River Conjunctive Use Program. Eosedale submitted its comment under date of August 30, 1979. It was our understanding that a second meeting woulc be scheduled around the end of September, 1979. However, to date that meeting has not been held. Recently the local newspaper quoted city officials as insist- ing that Mr. George Nickel move forward with any agreement between the City and Mr. Nickel which would call for Mr. Nickel to ariil certain water wells on the City's 2~00 acre spreading ground, presumably to be used for the exporta- tion of water to what has con-~only been known as the Rio- Bravo Annexation to the City. Rosedale considers that the program reported zn the newspaper woul~ violate the spirit expressed at the August 2, 1979 meeting. We would ask and suggest that the meeting proposed for last September be rescheduled with the hope that a Conjunctive Use Program for the River, satisfactory to all parties can be agreed upon prior to any physical implemen- tation of the agreement between ti%e City and Mr. Nickel. Very truly yours, Mary O611up District ~ianager MC:ck KERN COUNTY WATER AGENCY ' ,, 4114 Arrow Street, P O, Box 58 Bakersfield, California 93302 Dwectors' ;~ Telephone: 393-6200 ;~- ~ Stuart r. Pyle J. Elhott Fox D~vision 2 Jack G. Thomson Division 3 :~; Engineer-Manager Floyd S Cooley Diwsion 4 · ~,, .~ George E. R~bble Robert E McCarthy Divis~on 5 "' ' '.i ASSistant Engineer-Manager Henry C, Ga'herr Division 6 President %~ [~/ Linde Kildebeck Gene A. Lundquist Division 7 :'~"-~'~';:'"''~.~¥~' Secretary April 10, 1980 Mr. James Barton, Chairman City of Bakersfield Water Board 1501 Truxtun Avenue Bakersfield, CA 93301 Dear Mr. Barton: We have duly noted your letter of April 8, expressing concern and objections regarding Agency construction of percolation ponds on City of Bakersfield properties. The Agency entered into the program to spread and percolate Kern .River water to the maximum extent possible following a meeting with water district and water user representatives on March 6. Our objective was to assist in these efforts using the Cross Valley Canal and other facilities available to the Agency to prevent any more water than necessary from leaving the area via the Kern River-California Aqueduct Intertie or from becoming a flood hazard in agricultural areas. In our opinion the potential for emergency conditions required direct actionl From the management point of view, we believed that adequate communication and coordination was being achieved at the departmental level. Obviously, the construc- tion efforts moved more rapidly than the coordination effort. In retrospect, we can see that an explanation of the activity and a request for Water Board approval of the actions should have been scheduled. We regret that this was not done. We agree that the City has full jurisdiction over use of its properties and that our March 21, 1980 letter to advise of these actions, to indemnify the City and to offer to restore the property to its original condition if so desired was somewhat after-the-fact. Funds for these activities are from the Agency's supplemental water fund derived from sales of surplus State Project water and from joint funding supplied by cooperating water districts. Mr. James Barton Page Two April 10, 1980 As there are otherropportunities to expand spreading areas along the Cross Valley Canal and the Kern River, we plan to prepare and present information on these to the Water Board. Hopefully, this will serve to clarify the current situation and establish procedures for coordination of this type of work. You can be sure that such clearances will receive top priority in the future. Very truly yours, · ' '~-~enry ~. Garnett President xc: Mr. Tom Stetson Mr. Stan Hutch Mr. Roy Gargano Mr. Bill Balch Mr. Robert K. Bellue North Kern Water Storage District Kern Delta Water District Buena Vista Water Storage District Rosedale-Rio Bravo Water Storage District Urban Bakersfield Advisory Committee OLCESE WATER DISTRICT · 1415- 18th Street, Room 302 Bakersfield, California 93301 ['~'~/ g1980 805/325-9031 C~TY ~,',~:INAGEE'S May 1, 1980 City of Bakersfield Water Board 1501 Truxtun Avenue Bakersfield, California 93301 Gentlemen: At your April 3, ].980, Board Meeting, you requested that Olcese Water District provide, pursuant to Agreement No. 77- 07 W.B., a schedule of development and plan of improvement for City approval within thirty (30) days. This letter is in response to that request. Under Agreement No. 77-07 W.B., as amended, provision is made for improvements for both spreading and recovery of water. Spreading and recovery of water are distinctly separate oper- ations and are therefore treated as such in the following summaries of existing and proposed improvements to your 2,800 acre spreading area. Spreading Improvements During calendar year 1978, improvements were made and actions taken to percolate 24,328af at the 2,800 acre spreading area. These activities included: 1) Construction and maintenance of diversion works by Olcese to spread and percolate water. 2) Joint City-Olcese measurement of Kern River flows into the 2,800 acre spreading area. 3) Taking of aerial photos during the spreading oper- ation to evaluate the program and determine need for possible modification of diversion works for future spreading operations. City of Bakersfield Water Board Page 2 May !, 1980 4) Records of water spread were maintained by the City's staff. We feel the cooperative effort of the City and Olcese to spread water during 1978 was very successful and recommend that future.spreading operations follow a similar procedure. For calendar year 1980, we anticipate having some 30,000af to 60,000af of Kern River water available to us for percolation in the 2,800 acre spreading area. Similar to our operation in 1978, we propose in 1980 that immediately following closure of the Intertie and after the City's spreading requirements have been met, the 2,800 acre spreading area be dried up so that we may improve upon the existing diversion works. At the earliest date possible we would like an indication from the City as to its ~equirements for use of the spreading area so'that we may coordinate our 1980 operations. Recovery ..Improvements As you are aware, the water supply program for Olcese Water District provides for regulation of Kern River flows through percolation of water in the 2,800 acre spreading area during years of high flow and recovery in subsequent years. Transportation of water recovered to Olcese is most efficiently accomplished through water exchanges rather than direct delivery by pipeline. At the request of the City we have been negotiating fo~ some time with the Buena Vista Water Storage District for the exchange of Olcese water recovered from the spreading area and delivered to Buena Vista via the Kern River Canal for Kern River water to be made available by Buena Vista to Olcese in the Kern River channel. The proposed exchange will require that recovery facilities at the 2,800 acre spreading area be constructed by Olcese to meet the irrigation requirements of Buena Vista. Buena Vista has indicated that as a condition of the exchange, Olcese con- struct sufficient well capacity to deliver 2,000af per month, up to 10,000af per year from the 2,800 acre spreading area. Therefore, meeting the indicated requirements of Buena Vista will require some 33cfs of installed well capacity, which, based on existing well production in the area, will require install- ation of approximately six wells. Enclosed for your reference is a map depicting the 2,800 acre spreading area, spring 1979 depths to groundwater and Cit~ of Bakersfield Water Board Page 3 May 1, 1980 locations of water wells on lands adjacent to the spreading area. Shaded in blue is the general area in which we propose to con- struct wells, and appurtenant facilities for connection to the Kern River Canal assuming the Buena Vista exchange is success- fully negotiated. At your April 3, 1978, meeting, your consulting water attorney, Stanley C. Hatch, stated that further transfer of water rights is a prerequisite to any future exchange agreement with the Buena Vista Water Storage District. Recognizing that design and construction of recovery facilities will ultimately depend upon the method of transporting water to Olcese, we propose that actual construction of facilities be delayed until the method of transportation has been established. ,Your Board has indicated a desire that all aspects of the water supply program for the Rio Bravo Annexation be concluded at the earliest date possible. With this objective in mind, we request that you now consider participating in all further nego- tiations with Buena Vista Water Storage District. It is our understanding that Buena Vista is now in a position to meet with the City and ourselves to discuss the exchange and Buena Vista's participation in the spreading and recovery program. This letter was considered and approved by minute order by the Olcese Water District Board of Directors at its April 28, 1980, adjourned regular meeting. Should you have any questions or comments, the Board has authorized me to respond. ~ Owen F. Goodman v Secretary Olcese Water District OFG/pr .. OLCESE WATER DISTRICT '- 1415-: 18{h Street, Room 302 · Bakersfield, California 93301 t~./'~.¥ ~ ~980 805/325-9031 C.~TY ~:~ANAGEE'$ O~F,~CE May l, 1980 City of Bakersfield Water Board .... 1501 Truxtun Avenue Bakersfield, California 93301 Gentlemen: This letter is in response to your request of April 3, 1980, that Olcese Water District (Olcese) respond in detail to Mr. Hatch's letter to Mr. Nickel dated October31, 1979, within 30 days from April 3, 1980. We understand that you request response from Olcese to item 2 of said letter which reads as follows: "In our July 17, 1979, letter we requested you to consider having the Olcese district modify Agreement No. 77-07-WB as follows: 'a. To limit its effect to water used within the boundaries of~the City of Bakersfield. We would propose to provide for Olcese water spread for use outside the City boundaries in a separate arrange- ment, which would also involve other entities similarly situated; 'b. To amend to provide for a spreading fee of $3.00 per acre foot rather than the extraction charge and 'c. To delete the City's first priority use of any well which you construct and to permit the City to use only unused capacity in that well, in which event it would pay its proportionate share of oper- ation, maintenance and power costs.'" 'City'of Bakersfield Water Board Page 2 May 1, 1980 Response to..~tem a Agreement No. 77-07 W.B. relates only to the sPreading of Kern River water. The Kern River water right which Olcese will acquire is a lower river water right which generates water only in years of high flow, approximately one year out of four. Such a water right can be used as a source for a dependable domestic supply from Olcese only through-use of storage facilities. The other entities which Mr. Hatch proposes be permitted to use the City's spreading ' area have first and second point rights which generate water .each year regardless of the total flow of the river. When Olcese spreads water, such water will be spread only for use within Olcese. It is only after water has been,spread and has been found to be surplus to the .present and future requirements of Olcese that such water will be- come available for USe outside district boundaries. Olcese cann°t Surrender its-priority .position for a parity position with respect to the other districts and · agencies listed in Mr. Hatch's "Spreading and Extraction Program Conceptual Outline" inasmuch as O!cese's spreading operations must necessarily be more infrequent than the operations which can be taken by such other entities and Olcese's right to spread is essential to its provision of an~adequate ~water supply for Olcese as it now exists and for the area proposed for annexation. ~es~ons'e tp Item b Even prior to the adoption of ArtiCle XIII A of the State Constitution, Olcese by reason of the provisions of Chapter 3 of Part 4 of Division 1 of the Revenue and Taxation Code (commencing with Section 2201) had no effective power to levy ad valorem taxes for general district purposes. The only sources of revenue available to Olcese are tolls and charges which may be levied for water service. While certain standby charges may be levied, whether or'not water is actually used, the principal source of revenue to Olcese is and will in the future be a toll or charge for water delivered. A spreading fee must be paid in advance. An extraction charge is paid when water is removed from storage for actual use at which time Olcese would have revenue available to pay the extraction charge. Additionally, the proposal to substitute a spreading fee for the presently provided for extraction charge with, we presume, elimination of the credit feature of Article IV of ~ .'City' of Bakersfield Water Board · Page 3 May 1, 1980 Agreement 77-07 W.B. will impair the ability of Olcese to finance its obligations under said agreement. It is contem- plated that Olcese will convert the credits provided in said Article IV to cash for repayment of funds advanced by La Hacienda to enable Olcese to meet its obligations under said agreement. This financing procedure is set forth in Section 11 of the contract proposal discussed April 21. In.the absence of Olcese's ability to generate a cash flow which could accomodate payment of a spreading fee and financing of its obligations under Agreement 77-07 W.B. it must take the position that it cannot agree to the substitution of a spreading fee for the presently contemplated ext'raction charge. Response to Item c 'Olcese Water District cannot at this time respond'fully to item c. Following the April 3, 1980, meeting of the Water Board, an all day meeting was held in San Francisco on April 21 in the offices of Tom Stetson at which representatives of La Hacienda, Inc., representatives of the City and a representative of Olcese Water District were present. The principal item of discussion at said meeting was a proposed contract to implement~ further and more complete transfer of Kern River water rights to Olcese. We believe considerable progress was made. La Hacienda, Inc., has expressed and demonstrated willingness to cooperate. Transfer of such rights to Olcese without continued pro- vision for use by Olcese of the existing storage rights in the City's spreading area under the provisions of Agreement 77-07 W.B. will not provide a firm supply of water to the district.. The district's only feasible means of utilizing storage in the spreading area is through an exchange agree- ment with Buena Vista Water Storage District or some other entity to which water may be physically transported from the spreading area. An exchange agreement is presently being negotiated with Buena Vista Water Storage District. Until the terms of such an agreement are settled and until the obliga- tions and rights of Olcese to 'and from La Hacienda, Inc., are definately determined, it is difficult , if not impossible, for Olcese to make any commitment which would change the nature of the existing rights of Olcese to the use of facilities in the spreading area. .The foregoing is as complete a response as can be given to your letter of October 31, 1979, until.the full rights of 'Cit~ of Bakersfield Water Board Page 4 May 1, 1980 Olcese with respect %o river water and to exchanges of stored river water for river water to. be delivered directly to the district have been fully determined. The City'will, of course, exercise a voice in determining the final nature of those rights. This letter was considered and approved by minute order at an adjourned regular Olcese Water District board meeting of April 28, 1980. It is our understanding that further negoti- ations for transf'er of the lower river rights to Olcese Water District will take place May 1, 1980. Considering the progress' made 'at the April 21, 1980, meeting, we are hopeful that the necessary agreements for further and more complete transfer of water rights will be negotiated within the 60 days set forth by your board. ,The Olcese Water District Board of Directors has instructed me to be available should you have any questions or comments concerning the contents of this letter. Very truly yours, and Attorney for Olcese Water District ? OFG/pr MAY 30, 1980 SU BJ ECT ...... --A-~R..E-L~!.E.~.~{-T---°~`-Z~-~c-:~.-!`--L-~-~--R--.N.~---A---jd~-.~.E--R..-~-~[t~-!~-~---~.~-~.~ j~__.~_~.~._.~.___~___JJ___~.~. ...... ASHE WATER The Ashe Water System has been operated a~d maintained by the California Water Service [:ompany for the City of Bakersfield since the system was acquired from 'Tenneco in December of ]976. This agreement will renew this contract for another ~hree (3) years, The only major change in the original agreement occured in the Management Fee .(paragraph 3, page 3). The fee will be based on 2.25% of the gross revenues generated by the domestic water sales, rather than ]/2 of !% of the gross capital plant. This Change will simplify the accounting p.rocedure§' and provide a more equitable base for the fee, Staff has negotiated this agreement with CalifOrnia Wbter Service Company and the City Water Board has approved this ag,ree- ment and recommends it to the Counc i for the Mayor's execution. JHH:ag ~ .A G R E E M E N T THIS AGREEmeNT, dated , 1980, by and between the CITY OF BAKERSFIELD, a California municipal corporation ("City"), and CALIFO~I~ ~;ATER SERVICE CO~ANY, a California public utility water corporation ("Company"), W I T N E S S E T H: ~{EREAS, Company furnishes public utility water service throughout the State of California, including service to customers in the City of Bakersfield and surrounding unincorporated areas; and WHEREAS, City owns a domestic water enterprise whose facilities furnish service to approximately 6,300 customers in an area in the County of Kern contiguous to the west to Company's Bakersfield district as more particularly shown on ~ the service area map attached hereto as Exhibit A; and WHEREAS, City desires that Company, on City's behalf and as agent for City, continue to operate the facilities now so operated by Company within the Bakersfield Municipal Water System, Ashe Division (said facilities being hereinafter referred to as the "System"), and Company is willing to continue such operation not as a public utility service but as agent~ for City and under the supervision of City, all in accordance with the provisions of this Agreement hereinafter set forth: NOW, 'THEREFORE, the parties hereto hereby agree as follows:, 1. Term. The term of this Agreement shall be for three years commencing Jan. uary 1, 1980, providedt however, that such term shall be renewed for successive periods of one year each unless either party hereto shall notify the other on or before JulY 1, 1982, or on any July 1 thereafter, of its election to terminate this Agreement on the next succeeding December 31. In the event of such notice, this Agreement shall terminate on such next succeeding December 31. 2. Operation of System. During the term hereof Company agrees, on City's behalf and as agent for and under the supervision of City, to operate the ~System and to do all acts reasonably necessary to furnish domestic water service to cus- tomers within the area 'shown on Exhibit A hereto. Without limiting the generality of the foregoing and subject to the provisions of this Agreement, Company agrees to continue the daily operation of the System, to perform maintenance and repairs thereon as needed from time to time, to render monthly bills on behalf of City to all customers receiving water from the System, to use reasonable efforts to collect all such bills on behalf of City, to pay all "O & M Expenses", hereinafter defined, to compute the amounts of refunds on behalf of City where City is obligated to make refunds under extension agree- ments heretofore or hereafter entered into by City relating to the System, and in general to do such acts and perform such services as would City if'it were operating the System. In this connection, Company agrees to operate and maintain the System in a manner similar to that in which it operates its Bakersfield district, subject, however, in all respects to the provisions of this Agreement. 3. Management Fee. In consideration of the services to be performed by Company as City's agent in operating the System~ and as Company's sole fee for perforraing such services, City agrees to pay to Company each year during the term of this Agreement an amount equal to 2 1/4% of the gross revenues billed by company for service rendered and water delivered during such year. City agrees that it will pay such amount to Company by paying to Company on or before the fifteenth day of each month during the term of this Agreement an amount equal to 1/12 of 2 1/4% of the estimated gross revenues to be billed by Company for service to-be rendered and water to be delivered to customers served by.the System during the then current calerdar year. Company estimates such gross revenues for the calendar year 1980 to be $1,306,667. On or before December 15 of each year during the term of this Agreement, Company shall notify city in writing of its estimate, subject to City's approval, of such gross revenues for the calendar year next following. Within 90 days after the end of each such calendar year, Company shall account to City for the actual 3. revenues so billed by Company during the preceding calendar year. If the aggregate of such management fees paid by City to Company applicable to any such ca'lendar year shall exceed or be less than'the aggregate of such management fees owing by City to Company based on such accounting by Company, Company shall remit the excess to City with such accounting or City within 30 days after receipt of such accounting shall pay the difference to Company, as the case may be. 4. Transmitting Revenues. Company shall'transmit on each business day to such depositary as City may designate all monies collected by or otherwise paid 'to Company for service 'rendered and water delivered under and during the term of this Agreement. Clty shall promptly inform Company of the amounts and sources of all monies collected by or paid to City on account of service rendered to customers of the System during the term of this Agreement. 5. Payment of Expenses. (a) Company shall upon receipt send to City all bills for (i) real property taxes and assessments, if any, levied or assessed against the system or any part thereof, .............. (ii.) franchise and business taxes, if any, imposed upon or measured by revenues from the System, (iii) electric power charges incurred in operating the System, (iv) pump taxes levied upon extraction of water from wells serving the System, and (v) water purchased for delivery to the System. (b) Company, in accordance with the following provisions of this subparagraph 5(b), shall be entitled to reimbursement for all expenses, other than those set forth in the preceding subparagraph 5(a), incurred by Company in operating and maintaining the System ("O & M Expenses"). Within 30 days after the commencement of each calendar year during the term hereof, Company shall furnish City with an estimate of the operation and maintenance expenses for that year on a per metered customer basis in Company's Bakersfield district, including in such estimate for such purposes the estimate of operation and maintenance expenses of the Sysfem, the estimated average number of metered customers to be served by the System during such year, and a proration of Company's San Jose General Office expenses in accordance with Company's accounting procedures authorized by the Public Utilities Commission. In order to aid Company ~n estimating such O & M Expenses, City shall furnish Company on or before December 15 of each year during the term hereof, the dollar amount as of the'preceding June 30 of the gross utility plant of the System, including all ~lant installed under extension agreements. City shall reimburse Company for O & M Expenses on or before the fifteenth day of each month during the term hereof in an amount equal to one-twelfth of the aggregate amount of such estimate (the number of System metered customers used in such estimate multiplied by the estimated operat%on and maintenance expenses per metered customer) until Company shall furnish City with a new estimate for 0 & M Expenses pursuant to the provisions of the second sentence of this subparagraph 5(b), at which time City's monthly payment shall equal one-twelfth of the aggregate amount of such new estimate. Within 90 days after the end of each such calendar year, Company shall, account to City for the actual 0 & M Expenses based on the average number of customers served by the System during such year. There shall be excluded from the estimate of or accounting for such O & M Expenses: all expenses set forth ih subparagraph 5(a) hereof, as well as any allowance for depreciation on the System and any income tax payable by the Company. (c) If the aggregate of such O & M Expenses shall exceed the total of such monthly reimbursements from City to Company, City within 30 days after receipt of such accounting shall pay such excess to Company; if the aggregate of such expenses shall be less than such mon'thly reimbursements, Company shall remit the difference to.City with such accounting. (d) Notwithstanding the foregoing provisions of this paragraph 5, if Company shall determine that the estimated cost of any required work of repair or maintenance will be $2,000 or more in the case of main leaks or $1,000 or more in the case of any other such work ("Extraordinary Maintenance"), it shall notify City thereof in writing. Company shall not accomplish such Extraordinary Maintenance unless it shall be directed to do so.by City by written purchase order or other appropriate written instrument. Upon receipt of such purchase order or other instrument, Company will cause such work to be accomplished in accordance with plans and specifications theretofore furnished to City by Company and, upon completion, will bill City for the actual total installed cost of such work. Nothing herein contained shall, however, be deemed to limit ~ity's right to cause such Extraordinary Maintenance to be accomplished by a person other than Company, in which event Company shall bill City for Company's direct charges (including inspection and connection charges) and construction overhead charges at the rate of 8% of the amount billed to City as the total cost of such Extraordinary Maintenance item. City agrees to pay Company'any amount so billed to City pursuant to the provisions of this paragraph 5(d) within 30 days after receipt of such bill. Upon completion of such work, the Company shall have the sole responsibility for making any required connection to the System. The provisions of this paragraph 5(d) shall in no way be deemed to limit Company's right to accomplish any Extraordinary Maintenance of an emergency nature in accordance with the provisions of paragraph 7(g) hereof. 6. Rates. During the term hereof City shall establish and maintain such rate schedules applicable to the area shown on Exhibit A hereto as City shall deem appropriate from time to time. Except for private fire protection rate schedules, City agrees that all rate schedules applicable to service rendered by the System shall be metered. 7. Additions and Improvements. (a) During the term hereof Company will make available to City the services of its Chief Engineer ("Engineer"). City, in consultation with Engineer, has caused to be prepared a master plan of the Bakersfield Water System - Ashe Division, by Stetson Engineers, Inc. The parties agree that said document shall provide th~ basic plan of construction for the System. Engineer, in consultation and cooperation with City's staff, will review operating records and statistics of the System and submit tO City prior to January 31 of each year during the term hereof an itemized schedule of capital additions and improve- ments to the System proposed for construction during the following fiscal year. In preparing such proposed budget, Engineer and City's staff shall attempt to determine (i) where growth in customers to be served by the System may be expected and (ii) such other factors as m~y affect the nature, location and amount of such additions and improvements. Whenever practicable, such budget shall specify the .approximate location and contain a preliminary estimate of the cost of each item therein. If, in the judgment of Engineer and City's staff, it is more important to the operation of the System that certain'items on the budget be installed prior to certain other items, Engineer shall so indicate such relative priorities. In preparing such budget, Engineer and City's staff shall bear in mind the goal of providing adequate service to all customers of the System. (b) The budget so submitted.shall, after final review and approval by City's staff be presented to City's ~ater Board which may recommend such amendments thereto or revisions thereo~ as it deems appropriate in the exercise of its judgment. After approval by the Water Board, the budget shall then be submitted to the City Council of City in the manner required by law for adoption and notification. The budget finally approved by the ~ouncil shall be the Approved Budget for the particular year in question. City shall notify Company of'the Approved Budget. Company will then proceed with the construction of capital items on the Approved Budget in accordance with the procedures hereinafter set f~rth in this paragraph 7. (c) Company will proceed promptly to arrange for installation of all items estimated to cost less than $2,500 contained in the Approved Budget. Upon request by City, Company will prepare a work order for acceptance by City covering each item and, following acceptance, proceed with the %;ork of installation, including the preparation of plans.and specifications as required. Upon completion of'installation, which' need not require competitive bid procedures, Company shall bill City for the actual total installed cost of such work~ includJ, ng Company's construction overhead charges (computed at the'rate of 8% ~of the total installed cost of such work), and City agrees to pay Company the amount so billed within 30 days thereafter. (d) All items on the Approved Budget whose estimated reasonable total installed cost shall exceed $2,500 shall be designated "Major Items". Major Items shall be _ constructed in accordance with plans and specifications prepared in the manner specified~in this paragraph 7; construction shall be completed by contractors selected by City pursuant to City's applicable competitive bidding procedures. To the extent feasible~ all construction work on Major Items shall be completed within a reasonable time following delivery of such plans and specifications to City unless City by appropriate action shall instruct its Water Board to reject such plans and specifications° Engineer shall prepare plans and specifications for all Major Items consisting of main installations'in easements.or dedicated streets and highways. Company shall bill City for Company's overhead charges computed at the rate of 8% of the total estimated cost of said main installation within 30 days~of the awarding of 10. a contract for such main installation and City agrees to pay Company the amount so billed within 30 days thereafter. (e) All Major Items other than main installations in easements or dedicated streets and highways shall be constructed as follows: City or Company and City shall retain the services of an independent consulting engineer to prepare plans and specifications to meet City's bid procedure requirements for such Major Items. Engineer, with the consultation of City's staff including representatives from its legal, fire and public works departments, will supervise the preparation of and approve such plans.and specifications. Company, within 30 days of the awarding of a contract for each such Major-Item, shall bill City 3% of the estimated total installed cost of each such Major Item for the work of supervising preparation of such plans and specifications; City agrees to pay Company the amount so billed within 30 days thereafter'. Expenses of outside consulting engineers so retained by City or Company and City shall be paid directly by City without other addition. (f) Company shall furnish qualified inspectors at the site of all construction work on Major Items. Such inspectors may be Company employees, consulting engineer employees or such other qualified inspectors as may be required. City'agrees to pay the expenses of such qualified inspectors directly as a separate item, including all wages and overhead benefits, transportation and out-of-pocket expenses. 11. (g) Notwithstanding the foregoing provisions of paragraph 5(d) hereof or of this paragraph 7, in the event of an emergency involving any part of the System which in Company's judgment threatens the public health or safety, and if in the Company's judgment immediate action is required, Company shall have the right to perform, or cause to be performed, any work on the-System (whether repairs, maintenance or capital additions) regardless of the estimated cost thereof, free from any provision of said paragraph 5(d) or from any requirement that the contract therefor be let by competitive bid. Company shall notify City as-soon as possible as to the work done and proposed to be done as a result of such emergency threatening the public health and safety and of Company's estimate of the cost thereof. Company shall bill City for the actual total installed cost of such work, including Company's construction overhead charges computed aG the rate of 8% of the total cost of such work. City agrees to pay Company the amount so billed within 30 days after billing. (h) City shall have access to Company's books and records applicable to the System during normal business hours throughout the term of this Agreement and, in this connection, may require the production from Company's records of such state- ments, invoices and other documents as may be reasonably necessary to support any charge or bill submitted by Company pursuant to the provisions of,this Agreement. 12. 8. Extension Contracts. '(a) Ail extensions of the System to furnish service to individuals or subdivisions shall be made pursuant to contract between City and the individual customer or developer, as the case may be. The form of such contract shall be as approved by City from time to time. City shall provide in each such contract for the payment to Company of Company's direct charges and overhead charges in consideration for the work to be performed by Company in connection with such contract. Company shall not be obligated to install any such extension, but shall prepare and furnish to the individual customer or developer, as the case may be, and to City the plans and specifications therefor, and the estimated total installed cost thereof. In consideration therefor City agrees to pay Company at the time of delivery by Company of such plans and ~ specifications to such individual customer or developer, an amount for Company's overhead charges computed at the rate of 8% of such estimated total installed cost of such extension. (b) In the event Company and City shall agree in writing to permit a developer to prepare plans for a main extension in accordance with City's specifications and to prepare cost estimates of such extension,~ Engineer shall (i) review and supervise the preparation of such plans and the application thereto of City's specifications, and, when appropriate, approve such plans, (ii) review and, when appropriate, approve the estimate ~13. of the cost of ~uch main extension prepared by such developer in order to determine the fairness of said estimate in evaluating the maximum refund liability of City for such main extension, and (iii) supervise the installation thereof. In consideration therefor City agrees to pay Company, upon approval by Engineer of such plans and such cost estimate, an amount for Company's overhead charges at the rate of 4% of the cost estimate for such extension so approved by Engineer. (c) In addition to the responsibilities set forth' in the preceding subparagraphs 8(a) and (b), Company shall also be'responsible for the inspection of all work performed under each such contract 'and for connecting the facilities installed thereunder to the System. In consideration therefor City agrees to pay Company within 30 days after billing by Company therefqr all. Company's actual costs in connection therewith, including overhead benefits, transportation and out-of-pocket expenses. (d) Upon completion of construction, Company shall furnish City a statement of ~he actual total installed cost of each such extension. (e) City shall furnish Company with a copy of each extension contract relating to the System executed by City subsequent to t~e date hereof. Company shall compute the refunds due thereunder from time to time and notify City thereof. City shall be responsible for payment of such refunds to the persons entitled thereto. 14. 9. Insurance. DUring the term of this Agreement, Company shall cause City to be included as a named insured in Company's policy of comprehensive liability insurance maintained by Company from time to time covering the System and CompanY's operation thereof. Company shall deliver to City a certificate or duplicate copy of each such policy. In the event any claim is made which is covered by such policy, Company shall be respon- sible for payment or satisfaction of such claim up to, but not exceeding, the so-called deductible portion of such policy. 10. Disputed Bills. If City shall dispute or queStion any portion of any bill or statement submitted to it by Company or any amount purportedly, owing by it to Company hereunder, it shall promptly notify Company of the amount thereof so disputed or questioned, which amount City shall not be obligated to pay ~ until such dispute or question shall be finally resolved. ~ However, City agrees in each such instance to pay Company, when due, the portion of such bill, statement or amount not so disputed or questioned. 11. Payment of Bills. City agrees to take all necessary steps procedurally so that payments due from it to Company pursuant to the provisions of this Agreement will be made on or before the applicable day specified herein. 12. Agreement Conforms to Charter. City represents and warrants to company that this Agreement and the provisions 15. hereof conform to City's Charter as currently in effect. If any subsequent amendment to or revision of said Charter shall in any way affect this Agreement or ~e validity of any provision hereof, City agrees to give prompt notice thereof to Company. In such event the parties hereto agree to make such amendments to or .revisions of this Agreement as they may deem necessary or appropriate under the circumstances. 13. Title. Company shall have no title to, or owner- ship interest in, the System or any part thereof. 14. Notices. Any notice which it is herein pro'vided may or shall be given by either party to the other shall be deemed to have been duly given when deposited in the United States mail, registered or certified, postage prepaid, and addressed to the party to whom such notice is given at the~ following respective address: To City: City Hall~ 1501 Truxtun Avenue Bakersfield, Ca 93301 To Company: P.O. Box 1150 San Jose, Ca 95108 15. Paragraph Headings. Paragraph headings in this Agreement are for convenience only and are not a part of this Agreement and do not in any way limit or amplify the terms and provisions of this Agreement. 16. Nature of Service. It is specifically recognized and intended by the parties hereto that in performing its obligations under this Agreement company shall not offer or perforTM any public utility service but shall act solely as agent for City. Company specifically does not dedicate itself to render a public utility water service to customers within the area shown on Exhibit A hereto, but rather agrees to furnish a nonutility service therein in accordance with the provisions of this Agreement. IN ~;ITNESS WHEREOF, the parties thereto have executed this Agreement dated as aforesaid. APPROVED AS TO CONTENT: CITY OF BAKERSFIELD By Director-Fire and Development Mayor ~ Services APPROVED AS TO FO~4: By City Clerk City At~Urney J CALIFORNIA WATER SERVICE CO~.~ANY COUNTERSIGNED: ~y ~~~ ~~ ...................... ~~sident . Assistant City Manager-Finance ' "'- '" ~" ASiIE DIVISIO"',,; " 12 - 1,1.- 79 GER. SERVICE AREA ~."t A P I I 23 24 ' 19 2°- ' . ' 21 '22' 23 4, 26 ~0! 25 ~ ' 30 I 29 28 / ::'? I 26 I I II 12 II '~:~' FRASER .... [ ,- .!  Z b...i ,4 ~ ,3 .... .~ ~c.~. 24 19 20 21 23 ............ 'PANAMA LANE __ 25 ~ :50 ~: 29 28 27 26 Mc CUTCHEN RO,b,D ] 33 ' 34 35 ISSUED BY ................................. ' WATER BOARD DATE · · '~ OF THE CITY OF EFFECTIVE I - 30 - 80 ' EX=rIf EiT ' S & " , RESOLUTION NO. 80-I WR_ BAKERSFIELD