Loading...
HomeMy WebLinkAbout05/28/80 AGENDA WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, MAY 28, 1980 4:00 P.M. Call meeting to order Roll Call - Board Members: Barton, Chairman; Payne, Ratty, Bergen, Hoagland 1. Approve minutes of regular board meeting of May 14, 1980. 2. Scheduled Public Statements. a) C.H. Williams update on Weather Modification. - FOR BOARD INFORMATION. 3. Correspondence a) Proposed Spreading and Recovery Agreement between Olcese Water District and Buena Vista Water Storage District. - BOARD TO RECEIVE AND FILE FOR STAFF REVIEW. 4. Agreement. between the City of Bakersfield and California Water S~rvice Company for the operation and maintenance of the Ashe Water System. - REVIEW AND CONSIDERATION FOR SUBMITTAL TO CITY COUNCIL FOR MAYOR'S EXECUTION OF AGREEMENT. 5. Staff Comments 6. Board Comments 7. Adjournment MINUTES WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, MAY 14, 1980 4:00 P.M. The meeting was called to order by Chairman Barton in the City Hall Caucus Room. The secretary called the roll as follows: Present: Barton, Payne, Ratty, Hoagland Absent: Bergen Staff Present: Bogart, Chafin, Hansen, Hostmyer, Kelmar, Silvius Others Present: Gordon Ricks, Ricks, Taylor & Associates, Inc. Gayle Schontzler, The Bakersfield Californian The minutes from the meeting of Wednesday, May 7, 1980, were approved as corrected and the minutes from the recessed meeting of Thursday, May 8, 1980, were approved as presented. At this time Domestic Water Superintendent John Hansen presented to the board and recommended the adoption of the 1980-81 Domestic Water Enterprise Operating and Capital Outlay Program. After a brief outline of the budget by Mr. Hansen, Mr. Payne made a motion that the budget be approved and submitted to the City Council. The motion was passed. At this time Gordon Ricks of Ricks, Taylor & Associates, Inc. addressed the board. He spoke on the incorporation of Low-Head Power Generation on the river weir structures. Mr. Ricks stated that because of recent Public Utility Commission rulings requiring utilities to buy generated power and since the pricing structure for power had increased dramatically since the first of the year, the incorporation of power into the Beardsley and Carrier structures now appears feasible. At this time a lengthy discussion followed between board and staff regarding Mr. Rick's report. Staff Comments At this time a letter addressed to the Water Board from William T. Balch, Executive Vice President of Tenneco West, Inc. dated May 12, 1980, was read to the board. The letter was in regard to Tenneco's plan for a canal system which would divert surplus State waters into the James and Pioneer Canal systems. Mr. Chafin recommended that the letter be reviewed and the reply brought back to the next Water Board meeting. Mr. Hoagland made a motion that the letter be received and placed on file. The motion was passed. Mr. Hoagland at this time made a motion that the staff get together with Consultants Stanley C. Hatch and Thomas M. Stetson and review the engineering concepts of the Low-Head Power Generation reports that were presented here today by Gordon Ricks of Ricks, Taylor and Associates, Inc., and report back when the results are available. Also, sound out the attitudes of other First Point agencies as to Water Manager Chafin stated tkat at the meeting of May 8, 1980~, Mr. Bergen made a motion that the board send a letter to the Kern County Water Agency to obtain information regarding the $100,000.00 that had been expended for percolation areas and where the funds had been obtained. At this time the letter to the Kern County Water Agency was made avialable for Chairman Barton's signature and it will be sent'.to the Ker~ County Water Agency. Mr. hanson informed the board that the 2 million gallon tank study that is being done in the Ashe System is being reviewed by the board, staff, consultants and other interested parties. Mr. Hansen feels that they are in the process of finalizing their recommendations to be brought back to the board. On~ comment that seems to be universal is the question of whet~er using natural gas engines as a prime source of pumping water to the storage site is acceptable in a residential area du~ to the noise levels. Mr. Hansen invited board members to attend a tour next week of existing facilities in the Los ~.geles area to examine the noise levels. Mr. Payne and Mr. Rattylin- 'dicated that ~they' would be interested in going to Los Angeles for the tour. Board Comments --~ Chairman Barton stated that he had invited C.H. Williams, Engineer- Manager of North Kern Water Storage District who Ks the le~d organ- ization in the Cloud Seeding Program to attend our next Water Board meeting to bring the board up to date on the Cloud S~eding ~Program and on the recent seminar that was held in Santa B~rbara, California. There be'~g no further business to come'before the board, Chair- man Barton adjourned the meeting at 5:05 P.M. James J. Barton, Chairman ! City of Bakersfield Water Bo rd Linda H0stmyer, Secretary City of Bakersfield Water Board ~ ~ BUENA VISTA WATER STORAGE DIS~ICT ''~' 5~5 ~. MAIN STRE~ -:- PHONE (805) 764-5~I0 '~ P.O. Box 756 BU~ONWI~OW, CALIFORNIA 93206 w~LAC~.OUC.,..~ ........ May 13, 1980 GARY GAMB~. Vic= P,=SlD~NT H. J~N FISH~ GINO TORIGIANI, SECRETARY ~bS. ~ ~, MCY, ROY BELLUOMINI T~D BLOEMHOF City of Bakersfield Water Board 1501 Truxtun Bakersfield, CA 93301 Re: Proposed Spreading and Recovery Agreement BV Draft 5-15-80 Gentlemen: Enclosed please find an outline of terms for proposed spreading and recovery agreement between the City of Bakersfield, Olcese Water District, and Buena Vista Water Storage District. As suggested by City representatives in July, 1979, Buena Vista, Olcese and Hacienda representatives have been meeting since that date to arrive at points of discussion as to which they are in conceptual accord. The enclosed is our best effort in this regard and we are ready to meet with City representatives at their earliest convenience to discuss and consid~ the same. Very truly ~s,// / Wallace-~ouch~. P~esident OLCESE WATER DISTRICT Mel McColloch, President Enclosure CC: George W. Nickel, Jr. Tom Clark Gene R. McMurtrey 5-23-80 cc: S. Hatch T. Stetson Water Board (Each Member) BV DRAFT 5/15/8o OUTLINE TERMS FOR PROPOSED SPREADING AND RECOVERY OF WATER AGREEMENT BETWEEN CITY OF BAKERSFIELD, OLCESE WATER DISTRICT AND BUENA VISTA WATER STORAGE DISTRICT W~EREAS: (A) City owns approximately 2,800 acres of land along the Kern River between Renfro Road and Interstate Highway 5, referred to herein as the "spreading area." (B) Olcese has entered into certain agreements with City dated November 9, 1977 and June 27, 1978, which agreements are known as Agreement No. 77-07 W.B. and Agreement No. 78-12 W.B., respectively, to utilize the spreading area for the percolation and recovery of water which Olcese has acquired or will acquire. (C) Olcese is willing to assign to Buena Vista certain of its rights under Agreement No. 77-07 W.B. and Agreement No. 78-12 W.B. and City is willing to consent to such assignment. (D) Olcese and Buena Vista have reached agreement on a water exchange program whereby water spread by Olcese pursuant to (B) above can be exchanged with Buena Vista for like amounts of Buena Vista's Kern River water. NOW THEREFORE: (1) This agreement supplements said Agreement No. 77-07 W.B. and Agreement No. 78-12 W.B. and, except as modified herein, each such Agreement shall remain in full force and effect. (2) Olcese and City hereby assign to Buena Vista a right in common with Olcese to spread water in and recover water from the spreading area. The spreading right of BUena Vista is agreed to be a right of first refusal with respect to any unused portion of the SECOND PRIORITY spreading right of Olcese: Notwithstanding the foregoing, each year Buena Vista shall be entitled to claim, at any time and from time to time, a minimum of 25% of said second priority spreading right unless and until Buena Vista has delivered for spreading in such year sufficient wa~er to increase its groundwater bank account by 10,000 acre feet. (3) Spreading priorities shall run to claimant's own water and may not be exercised by such claimants for the spreading of water owned by others. (4) For use by Buena Vista for recovery of its water Olcese shall construct and install within the spreading area, at its sole cost and expense, prior to July 1, 1981, sufficient wells and water conveyance facilities to produce and deliver a minimum recovery capability for Buena Vista Water of 2,000 acre feet per month and 10,000 acre feet per year. Olcese may, at its optiOn, defer construction of all or any portion of the water recovery and conveyance facilities described above for a period not to exceed three (3) years. In the event construction is deferred, Olcese agrees that it will guarantee delivery of Buena Vista's groundwater at times and in a manner as if said water recovery and conveyance facilities had been constructed. Olcese shall provide such delivery from waters of equal quality otherwise available to Olcese and the groundwater bank account of Olcese shall be increased and that of Buena Vista shall be reduced by the amount of water delivered to Buena Vista by Olcese. (5) The first priority for utilization of recovery and conveyance facilities constructed under (4) shall belong to Buena Vista each year until it has recovered 10,000 acre feet and, there- after, said first priority shall belong to Olcese. Olcese is granted the first right of refusal with respect to any capacity not utilized by Buena Vista and Buena Vista is hereby granted the first right of refusal as~ to any capacity not utlized by Olcese. No limitation is imposed by this paragraph upon either B~na Vista or Olcese as to the total water recoverable each year. (6) Buena Vista agrees that Olcese water spread and recovered by pumps pursuant to Agreement No. 77-07 W.B. and Agreement No. 78-12 W.B. can be exchanged with Buena Vista for like amounts of Buena Vista's Kern River water. Terms and conditions of said exchange are as set forth in the "Water Substitution Agreement" dated . (7) There shall be established a groundwater bank account for each party utilizing the spreading area. Said accounts shall be adjusted from time to time as necessary to reflect the actual quantities of water which reach the groundwater storage unit under- lying the spreading area. (8) There shall not be credited to a groundwater bank account hereunder any water delivered for spreading outside the spreading area. It is agreed that each party shall have credit under this agreement only for percolation of water in the spreading area which - 3 - percolation would not have occurred under pre-existing conditions and is, therefore, supplemental groundwater recharge. All parties agree to develop a formula which, among other things, insures that no entity receives credit for normal, natural and/or unavoidable losses. (9) Any party may withdraw water from its groundwater bank account or transfer, exchange, and convey the same in place at any time and from time to time provided it then has a positive balance in said account. It is understood and agreed that the account balance of Buena Vista and Olcese as of the date of this agreement is: Buena Vista - ; Olcese - . (10) It is the intent and purpose of the parties that the waters spread and recovered shall be beneficially used directly, or indirectly by exchange, in a manner, time and place that will not have any significant long-term adverse effect on the groundwater basin historically recharged by the Kern River. To that end, it is agreed that water spread in and recovered from the spreading area and/or other water acquired in exchange therefor shall have limitations as to its place of use except Lower River Water Rights not heretofore used in Kern County. All parties reserve the right to object upon whatever legal grounds may exist when any one party proposes to sell or transfer water spread by it under terms and conditions whereby the ultimate place of use of such water will be adverse to the intent set forth above. (11) City will do or cause to be done the physical work required to spread and recover Buena Vista water and will operate all spreading facilities as provided in Agreement No. 77-07 W.B. City shall be responsible for the continuous measurement of water spread for and recovered by Buena Vista using such devices as are mutually agreed upon, and City shall keep complete and accurate records thereof. (12) Water recovered for Buena Vista pursuant to paragraph (4) shall be delivered by pipeline to a mutually agreeable point or points along the "River Canal." No charges shall be imposed by City for the use of its River Canal for the delivery of reCovered water hereunder. (13) City shall be entitled to charge and collect from Buena Vista an extraction fee of $3.00 per acre foot of water extracted or disposed of in place by Buena Vista. Said extraction fee shall be subject to increase or decrease based upon movement of the price index. (14) Each party hereto shall indemnify and hold harmless the others, their respective officers, agents and employees, of and from any and all liability for injury to or death of any person, or damage to property, caused by a negligent or wrongful act or omission occurring in such party's performance or nonperformance. In no event shall City be liable for any damage that may result from City's non-negligent compliance with an order or direction issued by Buena Vista or Olcese. (15) If operations under the agreement result in litigation all parties hereby agree to share equitably the cost of defense of such litigation. (16) The agreement shall be for a term of thirty-four years commencing July 1, 1978 and each party agrees to negotiate in good faith for an extension. D~VELOPMENT SERVICES DEPARTMENT " CITY of . .,~' _~ B A K E R S Fi E L D D[~IS ~[[D~D, ~ir~tor 1501 TRUXTUN AVENUE (805) 86~-2777 BAKE RSFIE LD, CALl FO RN IA 93301 B~IL~INO (861-2727) PLANNINO (861-2733) COMBUNITY DEVELOPBENT (861-27771 "~a" 22 ~ J ~80 REDEVELOPMENT (861-2777) DOB[STIC WATER (861-2777) Mr. Jeptha A. Wade Jr. Vice President & Chief Engineer California Water Service Company P.O. Box 1150 San Jose, CA 95108 Dear Mr. Wade: The Agreement with California Water Service Company and the City of Bakersfield covering the operation of the Ashe Water System requires some clarification, as per our conversation on May 14th 1980. It is agreed that paragraph 5(d) on pages 6 & 7, shall not limit the City's ability to perform any work independent of the Company; nor is the City subject to any direct charges (includi.ng inspection and connection charges) and construction overhead.charges for-any work performed solely by the City. In addition, the construction overhead charges of 8 percent for para- graph 7(c) & (d) pages 9 to 11 shall include preparation of plans and specifi- cations, plus construction supervision and inspection. Whereas, the 3 percent charge in paragraph 7(e) page 11 will provide among other things, some con- struction supervision and inspection, plus signing off the completed project. This shall not limit the terms of paragraph 7(f) page 11 which provides com- pensation for extra ordinary inspection or inspection provided by a consultant. Also, the typographical error on page 14 has been corrected to refer to paragraphs 8(a) & (b). If there are any questions as to these clarifications please contact me at (805) 861-2724. Very truly yours, Domestic Water Superintendent JHH:a9 CC: Water Board Tom Stetson, Stetson Engineers Bob D. Lewis, California Water Service Dennis Needham Dale Hawley Ed Schulz -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 CALIFORNI-A WATER SERViCE-CO~PANy-, a california public utility water- corporation ("Company") , W I T N E S S E T H: ~W/EREAS, Company furnishes public utility water service throughout the State .of-Cali-fornia, including service- to customers in the City of Bakersfield and surrounding unincorporated areas; and ~'~iEREAS, 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 January 1, 1980, provided, 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 Decel~ber 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 ~sh°Wn 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 "0 & ~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 performing 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. City 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, inciuding in such estimate for such purposes the estimate of operation and maintenance expenses of the System, the estimated average number of metered customers t~ be served by the System during such yearl 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 in 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 plant 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 operation and maintenance expenses per metered customer) until Company shall furnish City with a new estimate for O & 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 O & 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 i~ 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 acco6nting. (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 amo6nt 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 the 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 SysteTM may be expected and (ii) such other factors as may 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. I~f, 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 the~eo~ 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 Council 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, including 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 s'ite 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. ll. (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 a~tion 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 t~erefor 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 a~ 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 of the cost of such 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,~includ~ng overhead benefits, transportation and out-of-pocket expenses. (d) Upon completion of construction, Company shall furnish City a statement of the 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 the 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 ~le 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 ~mpany 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 the 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 provided 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 towhom 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 perform 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 WITNESS 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 FOPS4: By City Clerk C-~ty At£~rney CALIFORNIA-WATER SERVICE CO~.~ANY ~~sident Assistant City Manager-Finance , 1"7 BAKIZ'"'" "' ~.,,:.,, .;':.r'~ ... ::::, ,..4 r',o Ft ?..: L g MU"' '.?:' ~'~ ! C 1 F':;:',. L ':'" '~'" .... ~'"" ' ASttE. DIVISIOr! 12 - 14 - 79 GER. SERVICE AREA MAP ROSEDALE L~ HIGHWAY ; . o: 26o."~i 25 8] 30 29 28 - / 26 I × ,.STOCK x HIGRWAY__ I I! 12 II I '~' 't FRASER/r ,..,/ ..... ,. -"c o' / '- ~. ~1,~ ~ ~o ~, ~' ........ ~ LANE -. ~ ~~/ z M ROA 33 ' 34 35 ISSUED BY WATER BOAR~ ' ' DATE ' · ~%ffZ~i7 "'" OF THE CITY OF EFFECTIVE I 30 80 2u~ . RESOLUTION NO. 80-1WB BAKERSFIELD May 28, 1980 Mary E. Collup, Secretary Water Districts Advisory Committee P. O. Box 867 Bakersfield, CA 93302 Dear Mary: This letter is in reference to participation by the City of Bakers- field along with other local Water Districts in the proposed "Opti- mization and Enhancement Study" as proposed by the Kern County Water Districts Advisory Committee. By Water Board action taken on May 8, 1980, the City (subject to Council approval) i~ willing to authorize a contribution of $1,000 as City share for those lands lying outside the Improvement District No. 4, Olcese Water District and Kern Delta Water District boundaries. Pursuant to the proposed contract with the engineering consortium on the Optimization Study, we would recommend participation subject to the following comments: 1) The study must remain as objective as possible; since one landowning entity is represented by three participating member Districts, special care must be taken not to bie~ the findings and/or recommendations ¢.~ the report. 2) As already pointed out by one member District, the question of increased overdraft by' the recent and rapid development of farmlands in the southwest m~st be addressed. '3) For once and for all, as a result of this study the City of Bakersfield wants to see the ground- water basin in Kern County clearly defined; and moreover, to pinpoint th~se specific areas of overdraft. Ma.fy E. Collup, Secretary Water Districts Advisory Committee ~{~ay 28, 1980. 4) Due to the current negotiations among the First Point Parties on the Kern River, the City reserves the right to withdraw it's participation in the. study if it is found to be in conflict or detrimenta% to those negotiations. We appreciate your request for co-~.nts and ask that you submit this letter of record to the Water Districts Advisory Committee. Sincerely, Barton, Chairman City of Bakersfield Water Board JJB:klm /_./ . . . . ~Y 0 F ' " ~' -~''I-~×/ ' -'~ CALl FO R N IA ' '~~ ~ DEPARTMENT OF WATER ~ / ~= ~ May 28, 1980 ~~~ ~ - - _~._ Board of Directors Kern-Tulare Water District 1415-18th Street, Room 314 Bakersfield, CA 93301 Board of Directors Rag Gulch Water District 1415-18th Street, Room 314 Bakersfield, CA 93301 Re: Water Exchanges Gentlemen: The City has been asked to respond to requests by the Kern-Tulare and Rag Gulch Water Districts regarding the City's willingness to consent to water exchanges involving your two Districts and Improve- ment District No. 4 of the Kern County Water Agency, the purpose of which would be to sell M&I water for oil company use on the west side of the valley. As you know, Section 7.1 of the Agreements between the City and the Kern-Tulare Water District (76-~1) and the Rag Gulch Water District (76-63), precludes the sale of water outside the boundaries of each District without prior written notice to and approval of the City. Water exchanges also require the exchange water received to be used on lands within Kern County and within the boundaries of the District. It is the City's position that it cannot approve or consent on a blanket basis to any exchanges or sales of water by its water con- tractors. The City Water Board will consider any proposal submitted on its merits and will review it to determine whether or not it is consistent with the City's original objectives in entering into the various agricultural water supply contracts with neighboring Districts. May 28, 1980 Kern-Tulare Water District ~Rag Gulch'W~te~ District ke:~ Water Exchanges P~ge Two Limitations were placed in the water supply contract to prohibit the brokering of the City's water by others. The anticipated sales or exchanges which would be approved were those that would facilitate deliveries of water to the Districts contracting with the City. This does not appear to be the motivating factor at this time. It would be the City Water Board's general position that it would be in the public interest to facilitate the availability of water to the west side area to permit Oil development. At the same time we must all be careful to avoid any net export of water from a basin already in overdraft. All parties on the Kern River who are interested in providing water supplies to the west side should agree amongst themselves as to the procedUre and the method for accomplishing this objective. It is our view that if this were to be done unilaterally, and Were done in such a way that it would result in a financial windfall to isolate persons or entities, it would not receive the necessary approvals of the various interested parties and would, consequently, be an exercise in futility. For that reason, we would urg~e that joint meetings be arranged with all interested parties to discuss such water sales. Our representatives will participate. very truly yours, ~~es .~Ba~~ rton, Chairman City of Bakersfield Water Board JJB:lh cc: Kern County Water Agency Mr. George Nickel Kern-Tulare Water District Rag Gulch Water District 1415 - 18th Street, Room 314 Bakersfield, California 93301 Re: Water Exchanges Gentlemen: The City has been asked to respond to requests by the Kern-Tulare and Rag Gulch Water Districts regarding the City's willingness to consent to water exchanges involving your two Districts and Improvement District No. 4 of the Kern County Water Agency, the purpose of which would be to sell M&I water for oil company use on the west side of the valley. As you know, Section 7.1 of the Agreements between the City and the Kern-Tulare Water District (76-61) and the Rag Gulch Water District (76-63), precludes the sale of water out- side the boundaries of each District without prior written notice to and approval of the City. Water exchanges also require the exchange water received to be used on lands within Kern County and within the boundaries of the District. It is the City's position that it cannot approve or consent on a blanket basis to any exchanges or sales of water by its water contractors. The City Water Board will consider any proposal submitted on its merits and will review it to determine whether or not it.is consistent with the City's original objectives in'entering into the various agricultural water supply contracts with neighboring Districts. Limitations were placed in the water supply contract to prohibit the brokering of the City's water by others. The anticipated sales or exchanges which would be approved were those that would facilitate deliveries of water to the Dis- tricts contracting with the City. This does not appear to be the motivating factor at this time. Kern-Tulare Water District Rag Gulch Water District Page 2'~o Ail parties on the Kern River who are interested in providing water supplies to the west side should agree amongst themselves as to the procedure and the method for accomplishing this objective. It is our view that if this were to be done unilaterally, and were done in such a way that it would result in a financial windfall to isolated persons or entities, it would not receive the necessary approvals of the various interested parties and would, consequently, be an exercise in futility. For that reason, we would urge that joint meetings be arranged with all interested parties to discuss such water sales. Our representatives will participate. Very truly yours, JAMES J. BARTON JJB/mmg cc: Kern County Water Agency Mr. George Nickel