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CITY COUNCIL AGENDA ITEM NO. 21

Meeting Date: August 12, 2003

Subject/Title: Authorize the City Manager to execute the amendment to the agreement with the Contra Costa Water District pertaining to treated water services.

Submitted by: Engineering: B. Grewal/P. Eldredge

Approved by: John Stevenson, City Manager

RECOMMENDATION
Approve a Resolution authorizing the City Manager to execute the amendment to the agreement with the Contra Costa Water District pertaining to treated water services.

PREVIOUS ACTION
On September 26, 1995, the City Council approved Resolution 95-215 authorizing the execution of an agreement with the Contra Costa Water District for water supply.

On March 10, 1998, the City Council approved Resolution 98-41 approving the principles of the agreement between East Contra Costa Irrigation District (ECCID), Contra Costa Water District (CCWD) and the City of Brentwood for Long-Term Water Supply and authorizing the City Engineer to continue negotiations with ECCID and CCWD to reach a mutually beneficial agreement for all parties.

On December 14, 1999, the City Council approved Resolution 99-254 approving the agreements between East Contra Costa Irrigation District (ECCID), Contra Costa Water District (CCWD) and the City of Brentwood for long-term water supply, conveyance and treatment.

BACKGROUND
The agreement between ECCID and Brentwood approved by the City Council in December of 1999 provided the City with the first right of refusal of 14,800 acre-feet of water annualy to be used for municipal purposes. Additionally, the City Council approved an agreement with CCWD in December of 1999 to resolve overlapping service boundaries, provide interim treatment of this new found water source at CCWD’s Randall-Bold Water Treatment Plant and required both agencies to continue discussions for long treatment possibilities.

Staff from CCWD and the City have been analyzing several options to provide the long term treatment of this water. The options ranged from the City constructing its own facility adjacent to the Randall-Bold Water Treatment Plant, jointly expand Randall-Bold with CCWD or construct its own facility elsewhere. During the analysis of these alternatives it was determined that a “hybrid” approach was the most optimal and cost effective solution for both the City and CCWD. This approach consists of the City purchasing 3,200 acre-feet/year of existing treatment capacity in the Randall-Bold Plant and then constructing a scaled down water treatment facility adjacent to Randall-Bold in the future. This approach provides substantial savings to the City as further detailed in the Fiscal Impact portion of this staff report.

This amendment outlines the details for the purchase of this capacity, sets the criteria for the cost of treating the water and requires both agencies to continue working out the details pertaining to the “hybrid” alternative referenced above.

FISCAL IMPACT
The cost associated with the purchase of the 3,200 acre-feet/year is 10 Million Dollars and shall be paid over two years interest free. This amount has been accounted for in the Development Fee Program and was budgeted for in CIP 562-5629 as a part of the construction of a new facility.

For purposes of comparison, the average construction cost for an equivalent water treatment facility would have been approximately $2.00/gallon or Twelve Million Dollars, which does not include design, management or administrative costs. The net capitol savings for this “hybrid” alternative is 2 Million Dollars.

Since Brentwood will own the capacity right, the debt service or “rental” portion of our current water treatment costs will no longer be applicable. Therefore, Brentwood’s cost to treat an acre-foot of water will be reduced from $450 to $274. The reduced treatment amount paid per acre-foot shall be variable and will be based upon the total treated water used and the maximum month. However, this is how the current rates are calculated and therefore the reduction shall be proportional. The estimated annual savings is calculated below using the projected water consumption numbers for this year:

3,000 acre-feet x $450/acre-foot = $1,350,000
3,000 acre-feet x $274/acre-foot = $ 822,000

Estimated Annual Savings = $528,000

It is anticipated that these savings will be used to establish a reserve fund for operations as well as to save for the new facility that is anticipated within the next several years. By saving these funds now the City is able to minimize the anticipated rate increases typically associated with the capital and operational cost of these facilities.

Attachments:
Resolution
Amended Agreement

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDMENTS TO THE AGREEMENT WITH THE CONTRA COSTA WATER DISTRICT PERTAINING TO TREATED WATER SERVICES.

WHEREAS, on September 26, 1995, the City Council Approved Resolution 95-215 authorizing the execution of an agreement with the Contra Costa Water District for water supply; and

WHEREAS, on March 10, 1998, the City Council Approved Resolution 98-41 approving the principles of the agreement between East Contra Costa Irrigation District (ECCID), Contra Costa Water District (CCWD) and the City of Brentwood for Long-Term Water Supply and authorizing the City Engineer to continue negotiations with ECCID and CCWD to reach a mutually beneficial agreement for all parties; and

WHEREAS, on December 14, 1999, the City Council Approved Resolution 99-254 approving the agreements between East Contra Costa Irrigation District (ECCID), Contra Costa Water District (CCWD) and the City of Brentwood for long-term water supply, conveyance and treatment; and

WHEREAS, the agreement between ECCID and Brentwood approved by the City Council in December of 1999 provided the City with the first right of refusal of 14,800 acre-feet of water annually to be used for municipal purposes; and

WHEREAS, the City Council approved an agreement with CCWD in December of 1999 to resolve overlapping service boundaries, provide interim treatment of this new found water source at CCWD’s Randall-Bold Water Treatment Plant and required both agencies to continue discussions for long treatment possibilities; and

WHEREAS, staff from CCWD and the City have been analyzing several options to provide the long term treatment of this water; and

WHEREAS, during the analysis of these alternatives it was determined that a “hybrid” approach was the most optimal and cost effective solution for both the City and CCWD; and

WHEREAS, this approach consists of the City purchasing 6 mgd (3,200 acre-feet /year) of existing treatment capacity in the Randall-Bold Plant and then constructing a scaled down water treatment facility adjacent to Randall-Bold in the future; and

WHEREAS, this approach provides substantial savings to the City in the amount of Two Million Dollars. This estimated savings will be used to establish a healthy reserve fund in the water enterprise account as well as to help offset future water rate increases.

NOW THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood hereby authorizes the City Manager to execute the amendments to the agreement with the Contra Costa Water District pertaining to treated water services.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 12th day of August 2003 by the following vote:

AMENDMENT TO THE AGREEMENT BETWEEN
THE CONTRA COSTA WATER DISTRICT AND THE CITY OF BRENTWOOD


This Agreement is entered into this _____ day of __________, 2000, between the Contra Costa Water District (herein referred to as “CCWD”), a county water district organized and existing under Division 12, commencing with Section 30000 of the California Water Code, and the City of Brentwood, a Municipal Corporation herein referred to as “Brentwood.”

1. RECITALS OF FACT

A. East Contra Costa Irrigation District (“ECCID”) and CCWD entered into an agreement, dated May 16, 1990, wherein ECCID irrevocably dedicated 21,000 acre-feet annually (afa) of its 50,000 acre-feet confirmed annual water right to Municipal and Industrial (M&I) use, and of said 21,000 afa, sold to CCWD a permanent entitlement to use 8,000 afa (Block A), along with options on 7,000 afa (Block B) to be exercised by December 31, 1999, and 6,000 afa (Block C) to be exercised by December 31, 2009.

B. ECCID, CCWD and the California Department of Water Resources (“DWR”) entered into an agreement dated April 11, 1991, and further amended that agreement on February 7, 2000, wherein it was agreed that CCWD could pump ECCID water for M&I use at its Rock Slough and Old River intakes, and could serve ECCID water within CCWD and within an area corresponding to ECCID’s water right place of use.

C. CCWD and the Diablo Water District entered into an agreement dated June 6, 1989, wherein CCWD and DWD agreed to build and operate the Randall-Bold Water Treatment Plant and agreed to cost sharing for the project.

D. Brentwood and CCWD entered into an agreement dated October 19, 1995, whereby CCWD sold to Brentwood a permanent entitlement to use 7,000 afa of said Block A water, and whereby CCWD further agreed to negotiate with Brentwood concerning the remaining said Blocks B and C under Section 2.i thereof, which has been fully complied with.

E. Brentwood has confirmed that it will use the 7,000 afa of Block A water, as specified in Section 2.c of the October 19, 1995 agreement.

F. ECCID and CCWD have entered into an Agreement effective January 1, 2000 which provides for the permanent entitlement of 8,200 afa to be served in CCWD and for an additional 4,000 afa to be available to CCWD in shortage periods and which provides for payments to ECCID by CCWD for the water used, and which supersedes the ECCID-CCWD agreement dated May 16, 1990.

G. Brentwood and ECCID have entered into an Agreement dated December 14, 1999 which provides for the permanent entitlement of 14,800 afa from ECCID to Brentwood and for payments to ECCID by Brentwood for the water used.

H. It is mutually understood and agreed that the 7,000 afa of Block A water referenced within the October 19, 1995 Agreement is included within the total amount of water covered in the agreement between Brentwood and ECCID dated December 14, 1999, and that the remainder of the 14,000 afa of Block A, B and C water is included within either said agreement between Brentwood and ECCID, dated December 14, 1999, or in the agreement between CCWD and ECCID, effective January 1, 2000, that supersedes and replaces the May 16, 1990 agreement.

I. Brentwood and CCWD have found it in their best interests to enter into this Agreement effective January 1, 2000, in order to provide for their long-term water supplies, to allocate costs of meeting those supplies, to provide the basis for a potential long-term agreement between CCWD and Brentwood for conveyance and treatment of Brentwood’s water, and to resolve potential conflicts regarding service in overlapping service boundaries by providing a means by which Brentwood can lawfully serve water to customers in CCWD’s territory.

2. APPROVALS AND TRANSITION

A. This Agreement shall become effective upon execution of all of the following agreements:

i. An agreement dated February 7, 2000 to amend the January 7, 1981 Agreement between the California Department of Water Resources (“DWR”) and ECCID: 1) to expand the recognized water rights Los Vaqueros Service Area of ECCID to include an agreed upon portion of ECCID’s 1912 place of use, 2) to expand ECCID’s points of diversion to include CCWD’s intakes at Rock Slough and Old River, and 3) to increase the maximum diversion rate for ECCID’s water to 250 cubic feet per second; and

ii. An agreement dated February 7, 2000 to amend the April 11, 1991 Agreement among DWR, ECCID, and CCWD: 1) to expand the area in which CCWD is approved to serve ECCID water to include an agreed upon portion of ECCID’s 1912 place of use, 2) to expand points of diversion at which CCWD may divert ECCID water to include CCWD’s intake at Old River, and 3) to increase the maximum diversion rate for ECCID’s water to 250 cubic feet per second; and

iii. The parties agree that the agreement among DWR, ECCID and CCWD dated February 7, 2000 (“the 2000 DWR-ECCID-CCWD Agreement”) amends the agreements described in subparagraphs i. and ii., above.

iv. The water supply agreement between ECCID and CCWD, effective January 1, 2000, that supersedes and replaces the May 16, 1990 Agreement between ECCID and CCWD; and

v. The water supply agreement between Brentwood and ECCID dated December 14, 1999.

B. At the time that this agreement becomes effective, it shall supersede the October 19, 1995 agreement, which shall no longer have any force or effect.

C. Until the May 16, 1990 Agreement between ECCID and CCWD is superseded (including the execution of the amendment described in Sections 2.A.i and ii above), Brentwood will make all its payments under the October 19, 1995 Agreement to CCWD and CCWD will continue to make all payments to ECCID as specified in CCWD’s agreement with ECCID. Specifically, Brentwood shall continue to reimburse CCWD for the portion of CCWD’s annual payments to ECCID attributable to 7,000 afa of the Block A water under the October 19, 1995 Agreement ($140,000 per year) and for the cost of payments to DWR of $1,540 per year for an annual total of $141,540 per year and Brentwood shall make the first payment to CCWD on December 1, 1995 and on December 1, of each year thereafter. However, this payment shall be terminated when the May 16, 1990 Agreement between CCWD and ECCID is superseded and replaced by the water supply agreement between ECCID and CCWD effective January 1, 2000. Subsequently, payments for use of water which Brentwood has agreed to purchase from ECCID shall be made as specified in the agreement between ECCID and Brentwood.

3. LONG TERM WATER SUPPLY FOR BRENTWOOD

A. Brentwood and CCWD shall equitably share the costs of CCWD’s past payments required to maintain its entitlement to the ECCID water subject to the May 16, 1990 ECCID-CCWD Agreement. The total amount Brentwood is obligated to reimburse is approximately $586,000 (64.4% of the total payments through December 31, 1999 to ECCID [$2,350,000] less annual payments by Brentwood under the October 19, 1995 Agreement for Block A less any quarterly payments on the reimbursement already made). These past entitlement payments represent a buy-down cost per acre-foot of water as stated in the ECCID-Brentwood Agreement dated December 14, 1999.

B. Brentwood may continue to finance this reimbursement, provided that the final payment shall be made on or before December 31, 2006. The District shall invoice Brentwood on an annual basis starting with January 1, 2000 following a request to finance. Invoices shall be due and payable upon receipt. The rate of interest paid to CCWD for financing the reimbursement shall be six percent (6%).

C. Nothing is this agreement shall be construed to change or alter any provisions of CCWD’s agreements with ECCID or ECCID and DWR.

D. City purchase of a 6 mgd capacity right at Randall-Bold to serve City customers in the CCWD service area (a.k.a. overlap area, refer to Section 5).

i. The City of Brentwood hereby purchases and CCWD hereby sells to the City the treatment capacity right to treat up to 3,200 acre-feet (AF) of water per year at Randall-Bold. The maximum daily usage of this treatment capacity right shall not exceed 6 mgd. The City will not own the treatment capacity in title, but will have a reserved capacity right at Randall-Bold for the life of the facilities.

ii. The capacity right will be made available to Brentwood using CCWD’s share of the plant capacity. It is the intent of the District to provide treated water to Brentwood in accordance with the terms of Article 7 of the Joint Powers Agreement (JPA) dated June 6, 1989 between CCWD and DWD. The District may also elect, from time to time, to deliver water to the City from its Bollman Water Treatment Plant. Should treated water be delivered from the Bollman Water Treatment Plant, for payment purposes, the water will be paid for as though it had been produced and delivered from the RBWTP.

iii. The cost for the 6 mgd capacity right shall not exceed $10,000,000 (Ten Million dollars). Within 30 days of executing this amendment, the City shall pay half the amount due ($5,000,000) to CCWD. The remainder of the payment ($5,000,000) shall be due one year later upon written notification from CCWD.

iv. CCWD shall be responsible for the quantity and quality of the treated water up to the discharge side of the pump station as further described in Section 4.D.ii. The City shall responsible for the water quality downstream of this location.

v. If and when capital improvements are made to the treatment processes at Randall-Bold specifically to meet state or federally mandated regulatory requirements, the City shall pay its proportionate share based on its capacity rights.

vi. In the event it becomes necessary to make capital improvements the City shall be consulted in advance of the work and agreement will be reached as to the scope of the project, the proportionate share of costs to be allocated to the City, and the timing for repayment. The key principle for reaching such an agreement is that the City’s share of repayment shall be proportionate to the benefits received from the improvement. The City shall not be responsible for paying any costs associated with CCWD or DWD expansions that do not benefit the City.

E. New Treated Water Pump Station and Pipeline at Randall-Bold Water Treatment Plant to Serve the City of Brentwood

i. The City shall build a pump station and pipeline at the Randall-Bold site to convey treated water produced by CCWD to the City’s distribution system. The new facilities will be used on an interim basis to convey water treated as described in Section 4. The facilities will remain in use after the interim period to pump water treated at Randall-Bold using the City’s capacity right as described in Section 3.D.

ii. The City shall pay all costs associated with the project and shall enter into an agreement with CCWD to specify the responsibilities of both parties during design, construction and operation of the project.

iii. As further defined in the separate design and construction agreement, final inspection and acceptance of the project shall be by the City and CCWD . After final acceptance, the City shall transfer ownership of the pump station to CCWD.

iv. Both CCWD and the City agree that the purpose of the pump station is to provide treated potable water to Brentwood. The City will be consulted by the CCWD if any future modifications to this use are contemplated. If future modifications involve use of the pump station to convey water to any party other than Brentwood, the parties shall negotiate the requirements for reimbursing a portion of Brentwood ’s capital cost to build the facility as well as any applicable replacement, maintenance and depreciation costs. This reimbursement shall be based upon the ratio of benefit to be provided or in other words total flow provided in gallons per minute measured at a mutually agreeable location.

v. CCWD will provide an easement to the City for maintenance of the portion of treated water pipeline built on CCWD-owned property. The cost of the easement shall be determined by a property appraiser mutually agreeable to both parties. The City shall prepare all documents and pay all costs associated with the property assessment, preparing and recording the easement.

vi. The City shall own and maintain the entire pipeline in perpetuity. The City shall, at its sole expense, remove the pipeline if for any reason in the future it is abandoned. If the pipeline breaks and causes collateral damage, the City is responsible unless said damage is due to the sole willful negligence of CCWD. The City will be permitted access to the pipeline as well as the pump station as needed for maintenance or inspections. For security reasons, access to the site shall be controlled by CCWD.

vii. In addition to the water delivery provisions of Section 8.D, the City and CCWD shall develop a procedure for scheduling water deliveries that meets the needs of the City and does not adversely impact the operations of the plant.

F. Commitments, Responsibilities and Schedule for Implementing A Long-term Treated Water Agreement

i. The City and CCWD shall collectively establish the “Principles of Agreement” for a long-term treated water supply agreement by December 31, 2003 and have construction of all new facilities substantially completed and ready for operation before expiration of the January 2000 Agreement (December 31, 2006).

ii. The long-term agreement shall address treatment of the City’s ECCID supply for customers outside the overlap area at a new treatment facility located on Randall-Bold property and separate from facilities that treat water for customers in the overlap area. The new facility will supplement the 6 mgd capacity right from Randall-Bold described in Section 3.D. The new treatment facility shall be initially sized for a firm10 mgd capacity and will be expandable to approximately 30 mgd. The facility will consist of new conventional treatment processes and will also utilize a number of existing Randall-Bold support facilities including but not limited to the operations building, laboratory, power supply, roads and other infrastructure, and some chemical storage and metering facilities.

iii. The long-term agreement shall also address conveyance of the City’s ECCID raw water supply through CCWD-owned facilities. The agreement shall provide for costs for use of the existing facilities and costs for construction of new conveyance facilities in the future to meet the City’s and CCWD’s conveyance needs.”

4. TREATED WATER SERVICE TO BRENTWOOD

A. Project Description

i. CCWD shall convey and treat water obtained by Brentwood under the Agreement described in Section 2.A.v of this Agreement, (hereafter “Brentwood’s ECCID water”) at the 40 million gallon per day (mgd) Randall-Bold Water Treatment Plant (Treatment Plant) using CCWD’s 25 mgd share (rather than DWD's 15 mgd share) of the capacity of that plant.

ii. Unless Brentwood is unable to meet its transmission needs through its existing agreement with Diablo Water District (DWD), water thus treated shall be delivered to Brentwood through the distribution system of DWD, under the existing agreement between DWD and Brentwood. In the event that Brentwood is unable to meet its transmission needs through its existing Agreement with DWD, Brentwood shall have the right to design, construct and install a transmission line directly into the Randall-Bold Water Treatment Plant. CCWD shall make all connections between this line and the Randall-Bold Water Treatment Plant facilities at Brentwood’s sole cost. CCWD shall cooperate fully with Brentwood in the design, siting, and the construction of such transmission line, should it become necessary; provided, however, that all costs associated with such transmission line, including CCWD’s costs of inspections, connections and other costs of the transmission line, shall be borne by Brentwood as described in the “Design and Construction of Water Facilities Agreement” between CCWD and the City.

iii. Use of Brentwood’s ECCID water diverted, conveyed and treated by CCWD under this Agreement shall be in accordance with all applicable terms and conditions of the December 14, 1999 Agreement between Brentwood and ECCID, and the agreement dated April 11, 1991 among DWR, ECCID and CCWD, as amended. If either agreement has been superseded and replaced by subsequent agreements among those parties, then Brentwood’s use of ECCID water shall be in accordance with the agreements then in effect.

iv. It is the intent of CCWD to provide treated water to Brentwood in accordance with the terms of Article 7 of the Joint Powers Agreement (JPA) dated June 6, 1989 between CCWD and DWD.

B. Temporary Disruption of Service

i. The parties recognize that CCWD may be required by operational constraints from regulatory requirements, emergency conditions, court order or otherwise to curtail some or all of its diversions of Brentwood’s ECCID water. In such circumstances, CCWD shall provide Brentwood with as much advance written notice of any curtailments of ECCID water diversions as is practical. The notice will be directed to the City Engineer at the City of Brentwood, 150 City Park Way, Brentwood, California 94513, via U.S. mail and via telecopier. In the notice, CCWD shall inform Brentwood of the reason for curtailing the diversion, the portion of the diversion to be curtailed and the anticipated duration. In the event of an emergency threatening imminent harm to human life or property, CCWD shall notify Brentwood that the ECCID water diversions will be curtailed at the earliest possible time, and shall keep Brentwood informed of the status and extent of the diversions, and the expected time the diversions will be curtailed, until the emergency situation is resolved and regular diversion service is restored.

ii. Provision of Water during Disruption of Services based on Connections within CCWD’s Los Vaqueros Service Area (see Exhibit 4 for CCWD/Brentwood Service Areas):

In such circumstances as described in Subsection 4.B.i wherein CCWD is unable to divert some or all of Brentwood’s ECCID water, CCWD shall furnish other water to Brentwood for use by Brentwood’s customers in an amount equivalent to 0.67 afa per purchased equivalent 5/8 inch connection (a typical residential connection) within CCWD’s Los Vaqueros Service Area and for which Brentwood has paid applicable rates and charges as described in Section 4.C.iii. The water thus furnished shall be in a quantity consistent with CCWD’s Code of Regulations and policies with reductions proportionate to the reductions, if any, in the quantities then being furnished to CCWD’s wholesale municipal customers, and shall be consistent with the terms as described in Section 5.E.

iii. Provision for Additional Water during Disruption of Services for Connections outside CCWD’s Los Vaqueros Service Area:

a. Further in such circumstances as described in Section 4.B.i wherein CCWD is unable to divert some or all of Brentwood’s ECCID water, CCWD may, but is not required to, agree to furnish other water to Brentwood in addition to the water described in Subsection 4.B.ii and 5.E.i and ii up to the same total quantity that would have otherwise been diverted under this Agreement, for use by Brentwood outside of CCWD’s Los Vaqueros Service Area. CCWD’s right to terminate this agreement under Section 9 shall not be affected by the preceding sentence or by CCWD’s agreement hereunder to furnish and treat water other than Brentwood’s ECCID water.

b. If pursuant to the preceding subparagraph CCWD agrees to furnish and treat other water for Brentwood for use outside of CCWD’s Los Vaqueros Service Area, Brentwood shall at its cost make available to CCWD the same quantity of water for use by CCWD. The water shall be provided at such a time and in such a location that CCWD can divert (or redivert) and convey such water directly to storage in a reservoir owned by CCWD or, at CCWD’s sole discretion, directly to CCWD’s customers.

iv. CCWD may temporarily reduce the quantities of water delivered, or may discontinue the delivery of water, to Brentwood to enable CCWD to perform necessary inspection, repair, or replacement of any portion of the facilities that are then used to divert, convey and treat the water confirmed for use by Brentwood. CCWD shall provide Brentwood with as much advance notice as is practicable of any such discontinuance of, or reduction in the delivery of water to Brentwood. CCWD shall not be liable for failure to deliver water to Brentwood if such failure is caused by any reason beyond the reasonable control of CCWD.

C. Reimbursements

i. General Principles

a. Rates for conveyance and treated water service shall reimburse CCWD for the actual operating, maintenance, and administrative costs of conveying the water to and of treating the water at the Randall-Bold Water Treatment Plant, and a prorated value for wear and tear of the conveyance and Treatment Plant facilities.

b. Such rates for conveyance and treated water service shall include a charge for the use of debt funded facilities (for treatment of above and beyond the 6 mgd daily maximum described in Section 3.D at the Randall-Bold Water Treatment Plant, conveyance facilities and the occasional use of Los Vaqueros Project conveyance facilities) which shall provide compensation for interest costs, but not principal. By purchasing the capacity right, the City will not be required to pay interest or principal for treatment of up to 6 mgd daily maximum or 3,200 acre-feet annually at Randall-Bold.

c. Inasmuch as this Agreement is for an interim period, by paying such rates Brentwood will not be purchasing capacity rights in District facilities, except as described in Section 3.D. and 5.D herein.

d. CCWD shall invoice and Brentwood shall pay for the delivery and treatment of water on a monthly basis unless other financial arrangements are made.

ii. For raw water service for Brentwood’s customers outside the Los Vaqueros Service Area of CCWD, Brentwood shall pay on a monthly basis unless other financial arrangements are made, for the following:

a. The operating, maintenance and administrative costs of diverting and delivering the water to the Randall-Bold Water Treatment Plant and a prorated value for wear and tear of facilities. These charges are exclusive of the charges set forth in Section 3 and Subsection 4.C.iii through v, and are calculated as set forth in Exhibit 1, and are subject to adjustment from time-to-time based on actual costs.

b. The occasional use of Los Vaqueros Project pumping and conveyance facilities if CCWD is unable to divert ECCID water at its Rock Slough intake and these facilities are used to divert and convey the ECCID supply to the Randall-Bold Water Treatment Plant. CCWD shall attempt to minimize use of Los Vaqueros Project facilities for conveying Brentwood’s ECCID water, to the extent it is consistent with CCWD’s water quality goals, operational and regulatory constraints. The costs to be reimbursed for the use of Los Vaqueros Project pumping and conveyance facilities to serve water outside of the Los Vaqueros Service Area of CCWD are the prorated share of the sum of fixed operation and maintenance costs, variable operation and maintenance costs, and Los Vaqueros debt service costs for interest only, as set forth in Exhibit 1 and are subject to adjustment from time to time by CCWD’s Board of Directors. Such rates shall be based upon those adopted from time-to-time and published in CCWD’s Code of Regulations.

iii. For water service for all Brentwood’s customers within the Los Vaqueros Service Area of CCWD, Brentwood shall pay to CCWD on a monthly basis:

a. The full cost of service (including principal and interest costs for the use of Los Vaqueros facilities) for wholesale raw water as set forth in the wholesale municipal rate in CCWD’s Code of Regulations Section 5.20.010, as amended from time to time by CCWD’s Board of Directors, less the portion thereof associated with the cost of water obtained from the United States Bureau of Reclamation from the Central Valley Project (CVP) not used, plus the costs associated with delivery of ECCID water, as set forth in Exhibit 2. For the purposes of establishing a meter size and a water use capacity for Brentwood for such service to customers in CCWD’s Los Vaqueros Service Area, the Brentwood meter size and water use capacity shall be 0.67 afa and 1,200 gpd maximum day for each actual equivalent 5/8 inch meter connection in CCWD’s Los Vaqueros Service Area.

b. For each added or enlarged meter within CCWD’s Los Vaqueros Service Area, a facilities component of the wholesale municipal rate in the amount specified in the applicable table in Section 5.20.010F of CCWD’s Code of Regulations, as amended from time to time by CCWD’s Board of Directors, less the portion of said component associated with the cost of future water supply, as set forth in Exhibit 2, “Connection Fee”. This amount has been included in the City of Brentwood Development Fee Program which spreads this cost equitably among the various types of new development and will be tendered to CCWD as specified below.

c. Brentwood shall pay annually to CCWD the facilities component of the wholesale municipal rate as described in the preceding paragraph for its actual and anticipated future connections, in an amount for a minimum of 239 equivalent 5/8 inch connections per year, for twenty years, to a total of 4,780 equivalent 5/8 inch meter connections. For each connection over 4,780 equivalent 5/8 inch meter connections, Brentwood shall pay the applicable charge at the time the meter is issued. In the event this agreement is terminated, Brentwood shall pay CCWD for all actual connections not yet paid. The initial payment shall be made January 3, 2000 and shall be due on January 1 of each year thereafter with the last payment due January 1, 2019. Brentwood shall receive the benefits described in Section 5.D and 5.E for each connection, entirely within CCWD’s Los Vaqueros Service Area, for which the applicable rates and charges have been paid and continue to be paid. In addition, at any time during the term of this Agreement, Brentwood may notify CCWD that Brentwood does not intend to annex or serve water to all or any portion of the area within CCWD’s Los Vaqueros Service Area not currently within the City limits. If Brentwood presents sufficient information to CCWD either that development of such area will not take place or that water service to such area will be provided by another entity, the parties may agree to reduce the number of equivalent residential connections for which Brentwood is obligated to pay under this Agreement by those connections that had been projected to occur within such area. Such agreement shall not be unreasonably withheld.

iv. In addition to the foregoing charges, for water treatment services under this Agreement, Brentwood shall pay to CCWD on a monthly basis, unless other financial arrangements are made, the operating, maintenance and administrative costs of treating the water at the Randall-Bold Water Treatment Plant, and a prorated value for wear and tear of facilities. Such rates for conveyance and treated water service shall include a charge for the use of debt funded facilities (for treatment of above and beyond the 6 mgd daily maximum described in Section 3.D at the Randall-Bold Water Treatment Plant, conveyance facilities and the occasional use of Los Vaqueros Project conveyance facilities) which shall provide compensation for interest costs, but not principal. By purchasing the capacity right, the City will not be required to pay interest or principal for treatment of up to 6 mgd daily maximum or 3,200 acre-feet annually at Randall-Bold. These charges are exclusive of the charges set forth in Section 3 and Section 4.C.ii and 4.C.iii of this Agreement, and are calculated as set forth in Exhibit 3, and shall be based on actual costs.


D. Measurement of Quantities of Water

i. The quantity of raw water conveyed under this Agreement shall be the quantity measured at the point of diversion from either CCWD’s intakes at Old River or Rock Slough or ECCID’s intake at Indian Slough or a combination thereof.

ii. The quantity of water treated at the Randall Bold Water Treatment Plant for purposes of this Agreement shall be the quantity measured at the flow meter at the intertie with DWD and/or at the flow meter at the discharge side of the treated water pump station described in Section 3.E, plus plant losses as calculated in subparagraph iii. After the pump station is operational and upon written notification from the City, the City’s water quantities will be measured solely at the pump station discharge.

iii. Any water losses due to the treatment process will be apportioned annually based on Brentwood's proportion of total flow through the Randall-Bold Water Treatment Plant. Loss in the Treatment Plant is defined as the difference between water measured at the intake meter and water measured at the effluent meter. Brentwood's portion of this loss is the ratio of the quantity measured at the intertie meter and adjusted for distribution system losses to the quantity measured at the effluent meter. Loss will be determined within sixty (60) days of the close of the fiscal year and included in the payment reconciliation called for in Section 8D.

iv. The estimated quantity of losses and payment for losses occurring between the Randall-Bold Water Treatment Plant and the intertie have been accounted for in the Agreement between DWD and Brentwood dated September 9, 1996 and amended May 12, 1998.

E. Water Quality

i. CCWD is solely responsible for ensuring the quality of water, and for all aspects of compliance with applicable water quality regulations and standards, up to the discharge flange of the treated water pumps described in Section 3.E. Subject to the preceding provisions of this paragraph, Brentwood shall be responsible to receive and respond to communications from customers within the City of Brentwood relating to water quality concerns.

ii. Brentwood acknowledges that chloramine is used in the Randall-Bold Water Treatment Plant as the residual disinfectant, rather than chlorine as used by Brentwood. Brentwood shall be fully responsible for all issues related to the mixing of treated CCWD water with chlorinated Brentwood water, including but not limited to dealing with all regulatory agency issues related to disinfection and disinfection by-products.

5. OVERLAPPING SERVICE BOUNDARY RESOLUTION

A. In order to avoid overlapping service boundary conflicts and comply with restrictions on service to lands burdened by liens for indebtedness under general obligation bonds and/or subject to contracts with the United States, Brentwood covenants and agrees that at no time hereafter will Brentwood distribute or permit the use of any water under its control within the territory of CCWD, as it exists on the effective date of this Agreement except as provided for in Sections 5.B, 5.C, 5.D, and 5.E of the Agreement.

B. It is mutually understood and agreed upon that all past and future annexations of territory into Brentwood approved by LAFCO shall serve as notification to CCWD of Brentwood’s intent to distribute or serve water within the newly annexed territory. Brentwood shall not distribute or serve water to customers of CCWD, outside of the City of Brentwood City limits, without CCWD’s express written permission, and the express written permission of the wholesale municipal customer of CCWD, if any, into whose territory or sphere of influence such water would be served. In addition, Brentwood shall not distribute or serve water to any of CCWD’s existing wholesale or retail customers without CCWD’s express written permission, and shall not distribute or serve water to any retail customers of CCWD’s existing wholesale customers without the express written permission of the affected wholesale municipal customer.

C. Brentwood understands and agrees, on its own behalf and on behalf of its customers, that CCWD is not, and shall not, become obligated to provide water from the facilities comprising the Los Vaqueros Project for use by Brentwood outside the Los Vaqueros Service Area of CCWD.

D. Brentwood shall receive the benefits, rights, privileges and obligations of all other CCWD municipal raw water customers, for each and every connection, and only those connections, providing water service entirely within CCWD’s Los Vaqueros Service Area for which the applicable rates and charges have been paid and continue to be paid, as set forth in Section 4.C, including 4.C.iii. The benefits shall not accrue to any connection outside of CCWD’s Los Vaqueros Service Area.

E. Emergency use. In such circumstances as described in subsection 4.B.i, CCWD shall provide to Brentwood water of the following quantities and rates.

i. Pursuant to Subsection 4.B.ii, CCWD shall make available to Brentwood an amount of water not to exceed 0.67 afa for each and every purchased equivalent 5/8 inch meter connection, and only those connections, for which Brentwood has paid the applicable charges pursuant to Subsection 4.C.iii. CCWD may reduce the amount available to Brentwood in a manner proportionate to the reductions, if any, in CCWD’s Code of Regulations and policies, and consistent with the quantities being furnished to CCWD’s wholesale municipal customers. The amount of water furnished under such circumstances shall not exceed the amount that would have been normally delivered during the same period in the absence of such circumstance, or 3,202 acre-feet, (4,760 equivalent connections, times 0.67 afa/connection) whichever is less.

ii. For water delivered pursuant to Subsection 5.E.i and 4.B.ii, Brentwood shall pay the treatment costs as set forth in Subsection 4.C.iv and the then current wholesale municipal raw water rate as set forth in CCWD’s Code of Regulations, Section 5.020.010.

iii. Water deliveries under the circumstances described in Subsection 4.B.i that would exceed the amount set forth in Subsection 5.E.i shall be governed by Subsection 4.B.iii.

6. ENVIRONMENTAL COMPLIANCE, PERMITS AND APPROVALS

A. Brentwood shall be the lead agency and shall be fully responsible for all environmental compliance including permits and CEQA approvals associated with its purchase and use of the ECCID water supply, interim treatment at the Randall-Bold Water Treatment Plant, the purchase of a capacity right at the Randall-Bold Water Treatment Plant described in Section 3.D, construction and use of the pump station described in Section 3.E, construction and use of long-term treatment facilities described in Section 3.F, and distribution to its customers. Environmental compliance shall be at Brentwood’s sole cost. CCWD will provide assistance to the City as needed to develop the required environmental documentation.

B. CCWD’s performance under this Agreement shall not conflict with its permits or other service agreements, including the Joint Powers Agreement with DWD, the CCWD/ECCID/DWR Agreement dated April 11, 1991, as amended, bond documents or state water rights permits. If any agreement has been superseded or replaced by subsequent agreement, bond documents or state water rights permits, then CCWD’s performance shall not conflict with the agreements, bond documents and water rights permits in effect.

C. Specific interim water service arrangements under this Agreement shall be consistent with conditions placed on CCWD and the Contra Costa Water Authority concerning the operation of the Randall-Bold Water Treatment Plant owned jointly by CCWD and DWD.

D. Nothing in this Agreement shall prevent Brentwood from acquiring additional sources of water, exclusive of waters that are subject to the agreement between CCWD and ECCID.

7. AUDITS

A. Each party may at its expense conduct a financial audit of the other party in matters pertinent to this Agreement upon written request.

B. An audit shall not be conducted more frequently than annually and the right to audit shall not exceed the four fiscal years preceding and including the notice of audit. Each party will maintain true and complete records and will retain such records for at least four years. Any claim arising from the audit will not be barred by the statute of limitations so long as the claim is filed within one year of commencing the audit.

C. The agency being audited shall provide such assistance as may be reasonably required in the course of such audit. Any such audit shall be conducted in accordance with generally accepted auditing principles for audits of State and local governmental units. The accounting shall be maintained substantially in accordance with the Governmental Generally Accepted Accounting Principles (GAAP) for State and Local Governments.

D. In the event the audit determines that Brentwood has either been overcharged or undercharged for the services provided by CCWD under this Agreement, Brentwood shall either be credited against future charges for the amount it overpaid or pay CCWD the additional amount owed.

8. SCHEDULE FOR TREATED WATER SERVICE


A. Brentwood shall notify CCWD of any amendments or changes in the executed agreement with DWD for the conveyance of the water treated by the Randall-Bold Water Treatment Plant to Brentwood through the DWD conveyance system and the distribution plans.

B. Nothing in this Agreement shall obligate CCWD to provide long-term conveyance nor treatment of more than 3,200 acre-feet per year for Brentwood of water obtained from any source of supply after December 31, 2006, except that, should Brentwood and CCWD have reached an agreement for long-term conveyance and/or treatment of water prior to December 1, 2003, and implementation of such an agreement extends beyond December 31, 2006, CCWD may extend treated water service beyond the 3,200 acre-feet per year under this Agreement until these facilities are operational.

C. On or before December 1 of each year, Brentwood shall submit in writing a proposed monthly delivery schedule for the ensuing year beginning January 1 of the following year. The proposed delivery schedule shall be in the form provided by CCWD and shall indicate the approximate amounts of treated water desired by Brentwood during each month of the ensuing year. Brentwood's anticipated monthly delivery schedule shall not constitute a commitment by Brentwood to receive the amount of water set forth therein but shall establish the monthly scheduled amounts of treated water to be delivered to Brentwood for planning and budgetary purposes. Rates and charges which are based on delivery amounts will be set for the ensuing fiscal year based on this schedule. Brentwood may submit to CCWD a revised delivery schedule from time to time as it is required by factors or events beyond the reasonable control of Brentwood. Within sixty (60) days of the close of each fiscal year, Brentwood shall pay, or receive a refund for, any costs which varied from the estimated amounts.

9. TERMINATION

A. No part of this agreement or amendment may be modified or terminated without written concurrence of each agency’s governing body. It is further understood by the City and CCWD that the 6 mgd capacity right purchased shall be for the life of the facility as further described herein.

B. In the event this agreement is terminated, Brentwood shall pay to CCWD for all actual connections not yet paid in the amounts described in Subsection 4.C.iii. Such payment shall be made prior to ninety (90) days after the effective date of termination.

C. The provisions of this section shall prevail notwithstanding other provisions of this agreement.

10. DISPUTE RESOLUTION

A. Mediation. The parties agree to first submit any dispute arising out of or in connection with this Agreement to a mutually acceptable professional mediator and to negotiate in good faith toward reaching an agreement with respect to the dispute. In such event, neither party shall proceed with arbitration until the completion of the mediation, the mediation being an express condition precedent to further remedies. The parties may, however, agree in writing to proceed directly to arbitration.

B. Binding Arbitration. Should the parties be unable or unwilling to resolve their dispute through the mediation process provided in Section 10.A above, either party may give written notice to the other party and elect to have the matter resolved by final and binding arbitration in accordance with the rules and procedures of the arbitrator selected in accordance with this Section 10.B (the “Arbitrator”). The party seeking arbitration shall set forth in its notice the particulars of its claims and shall state with specificity the issue(s) to be submitted to arbitration and the relief sought. Within thirty (30) days of the date of the election to arbitrate, the parties shall select a single, mutually agreeable arbitrator. If the parties are unable to agree, they shall request that the Judicial Arbitration and Mediation Service, Inc. (“JAMS”) if such entity is then in existence, appoint an Arbitrator in accordance with then-current procedures. The arbitrator shall be a retired judge of the Superior Court of California, or the Court of Appeal of California, or a retired judge of the United States District Court sitting in California. If JAMS is not in existence, the Presiding Judge of the Contra Costa Consolidated Court of Unlimited Jurisdiction shall appoint an Arbitrator in accordance with its then-current procedures.

The rules and procedures for arbitration shall be as follows:

i. The Arbitrator shall be selected and arbitration shall be conducted within a reasonable time, but in no event later than ninety (90) days after the date upon which the demand for arbitration is filed.

ii. The arbitration proceedings shall be conducted in Contra Costa County, California, at a time and location as agreed to in writing by the parties, or in absence of an agreement, as designated by the Arbitrator.

iii. Subject to the same rules pertaining to privileged communications and attorney work product that would apply if the proceeding was filed in the courts of the State of California, the Arbitrator shall have the authority to make all decisions regarding the relevance, materiality, and admissibility of all evidence offered at the arbitration.

iv. The Arbitrator may issue any remedy or relief, whether provisional or permanent, including but not limited to a default judgment, which the parties could have obtained under the law applicable in courts of the State of California under the same factual circumstances, and the Arbitrator shall follow and otherwise employ the standards for issuing such relief as defined by California law; provided, however, that the Arbitrator shall have no authority or jurisdiction to enter an award for consequential, special, exemplary or punitive damages. The Arbitrator may also grant such ancillary relief as is necessary to make effective the award.

v. Both parties may conduct discovery as if the matter were pending before a Superior Court of the State of California and the Arbitrator shall have the full power of the State of California to issue and enforce subpoenas and to award sanctions. Either party shall have the right to demand in writing that the other party provide a list of witnesses it intends to call at the hearing, designating which witnesses will be called as expert witnesses, and a list of documents it intends to introduce at hearing. The responding party’s list(s) shall be served personally or by registered or certified mail on the requesting party, with a copy to the Arbitrator, at least thirty (30) days before the hearing.

vi. Each party shall have the right to be represented by counsel.

vii. No later than sixty (60) days following closing of the arbitration hearing, the Arbitrator shall make an award and issue a written opinion consisting of findings of fact and conclusions of law and setting forth the bases of the award. The Arbitrator may include in his or her award pre-award interest and post-award interest at the legal rate where authorized by law. The party against whom the award is made or remedy or relief ordered shall have thirty (30) days after receipt of the award or order to commence and thereafter diligently pursue to completion any action or proceeding in any court of the State of California of appropriate jurisdiction located in the County of Contra Costa to obtain judicial review of the award or order. If the award of order is mailed, it shall be deemed to be received within five days after deposit in the mail.

viii. If no such action or proceeding is timely commenced, the award or order shall thereupon immediately become final. The party against whom the award is made or remedy or relief ordered shall within thirty (30) days after the award or order becomes final make full payment and/or commence and thereafter diligently pursue to completion any other action required by the award or order. The party in whose favor the award is made may request and obtain from any court of the State of California of appropriate jurisdiction located in the County of Contra Costa a Judgment upon the award rendered by the Arbitrator, which may thereafter be entered in the records of said court.

ix. If an action or proceeding is timely filed in any court of the State of California of appropriate jurisdiction located in the County of Contra Costa to obtain judicial review of the award or order, the parties shall have the right to seek vacation or modification of any portion of the award that is based in whole, or in part, on an incorrect or erroneous ruling of law, in addition to the limited statutory right to seek vacation or modification of an award pursuant to the law applicable to non-judicial arbitration. The findings of fact of the Arbitrator shall be binding on all parties and shall not be subject to further review except as otherwise allowed by the law applicable to non-judicial arbitration.

x. The Arbitrator shall be paid a per diem or hourly charge as established at the time of appointment. Each party shall bear its own attorneys’ fees and costs in presenting its case. All other actual costs of conducting the arbitration, including without limitation the administrative fee and the Arbitrator’s compensation, shall be shared equally.

xi. This arbitration clause shall be interpreted under the arbitration laws of the State of California and not the Federal Arbitration Act, 9 U.S.C.§ 1. Except as otherwise provided in this Agreement, any motion, application, complaint or proceeding arising out of or relating to this arbitration clause shall be determined in accordance with the law of the State of California.

xii. Unless otherwise provided in this Agreement or otherwise agreed in writing, the parties shall continue to perform their respective obligations under this Agreement during the pendency of arbitration proceedings.

xiii. Except as modified or stated to the contrary in this Section 10, the rules and procedures of the Arbitrator in effect at the time of the arbitration shall apply to the arbitration procedure.

11. INDEMNIFICATION

A. Each party shall defend, indemnify and hold harmless the other party, its officers, directors, employees and agents, from and against any loss, cost or expense, including reasonable attorneys' fees, where such loss, cost or expense is caused, or claimed or alleged to be caused, by the sole negligence or willful misconduct of the indemnifying party, or its officers, directors, employees or agents, or by a breach of any obligation of this Agreement by the indemnifying party.

B. Where such loss, cost or expense is caused, or claimed or alleged to be caused, by the negligence or willful misconduct of both parties, or their officers, directors, employees or agents, or by a breach of any obligation of this Agreement by both parties, each party shall defend, indemnify, and hold harmless the other party in proportion to their proportionate fault as determined by mutual agreement or by arbitration or judicial decree.

IN WITNESS THEREOF, the parties hereto have made and execute this Amendment as of the date and year first written above.

CITY OF BRENTWOOD CONTRA COSTA WATER DISTRICT


By:______________________________
John Stevenson, City Manager

By:______________________________
Joseph L. Campbell, President

ATTEST:
ATTEST:


_________________________________
City Clerk

__________________________________
Lynne Holland, District Secretary

Approved as to Form:

_________________________________
City Attorney
Approved as to Form:

_________________________________
District Legal Counsel


GG/rlr
12-10-99

EXHIBIT 1 – Costs for Water Service to Brentwood Customers Outside CCWD

The principle is reimbursement of actual O&M costs for pumping and conveying ECCID water, plus wear and tear and rental of facilities. Wear and tear is based upon the current depreciated booked value of the raw water system (exclusive of Los Vaqueros Project [“LVP”]facilities) and rental on the interest only portion of any debt service for raw water facilities (exclusive of LVP facilities). Costs per acre-foot are based on actual costs divided by total sales of water delivered (actual rates will vary based upon the total annual usage in acre-feet and the maximum month in acre-feet; typically the per acre-foot cost for treatment will decrease as more water is used). Annual rates are set based on estimated costs with an annual adjustment per Section 8.D.

The example costs assumes rates in effect as of June 2002, and assumes total Brentwood consumption of 2,555 af/yr as measured at the Randall-Bold Treatment Plant and an average of the three maximum months of usage of 483 af/month (5.3 mgd). For raw water pumping and conveyance charges, losses (which run between 5% and 7%) are added to the amount of water leaving the Treatment Plant to determine the total amount of water pumped from the Delta. Charges for raw water pumping and conveyance are based on the total water pumped from the Delta. Treatment charges are based on the total water treated (water leaving the plant plus treatment plant losses).

COMPONENT Example Cost for 2002
($ per af) BASIS FOR ACTUAL CHARGES
Conveyance
Raw Water O&M $69.44/af Raw water operations and maintenance of raw water facilities exclusive of Los Vaqueros Project O&M and CVP water and power costs. Included are:
Raw water pumping plant facilities operations and maintenance exclusive of power for pumping CVP and LVP water. Basis is total annual District cost divided by total annual District raw water sales.
(Year 2002 example: $9.69/af)
Canal operations and maintenance, raw water transmission and distribution maintenance (excluding LVP costs but including non-LVP raw water storage). Basis is total annual District cost divided by total annual District raw water sales.
(Example: $39.63/af)
General Administration. Basis is total cost of general administration pro-rated based on the ratio of Brentwood’s raw water to total annual District raw water O&M costs (exclusive of water purchases and power costs) divided by total annual raw water sales.
(Example: $20.16/af)
Raw Water Facilities Wear and Tear and Rental $16.89/af Wear and Tear and rental of conveyance facilities:
Wear and Tear: depreciated book value of the non-LVP raw water facilities depreciated over the remaining life, per acre-foot of total annual District raw water sales.
Current basis is $28.7 million with estimated average 50 year life and 100,000 af of sales. Basis for 2006 (based on current CIP) is $50 million.
(2002 example: $10.74)
Rental based annual interest on raw water facilities exclusive of LVP facilities, divided by total annual District raw water sales.
Current interest is on a debt of $13.5 million @ 3.25%, with current annual use of 100,000 af/year.
Basis in 2006 based on current CIP is $23 million @ 5.7%
(2002 example: $6.15)


SUB-TOTAL $86.33/af Estimated FY2002 O&M, wear and tear and rental for ECCID water conveyance to Randall-Bold Treatment Plant

ECCID water pumping $6.81 This is the estimated cost to pump ECCID water using alternate District power sources (e.g. MID power, 2002). $6.81 is 2002 average estimated rate based on MID contract and current power market. Actual charge will be estimated and corrected each year.
CVP charge for wheeling $5.93 2002 pass-through charge from the USBR for using CVP facilities for non-CVP water (FY2002 charge is $5.93)
SUB-TOTAL $99.07/af Estimated FY2002 total charge for pumping and conveying ECCID water to Randall-Bold Treatment Plant per acre-foot of water pumped from the Delta
Treatment $174.87 See Exhibit 3.
Administrative costs $1 Agreement administration
GRAND TOTAL $273.94/ af Sum of raw water conveyance, treatment and administrative costs.


Charges in addition for the use of Los Vaqueros Facilities, should the use be necessary when ECCID water cannot be pumped and more water is needed than is available based on connections in the CCWD service area. Wear and Tear and Rental are based on depreciated value and the interest only portion of the debt service, respectively.”

Optional Charges As specified in section 4.c.ii.B
Interest on LV debt $200.24/af Debt service interest allocated to wholesale municipal customers applied to the quantity for Brentwood measured at the point of diversion into the LVP system. Basis is total annual interest portion of debt service for LVP divided by total annual District raw water sales.
(Example: $200.24)
LV O&M $10.05/af Estimated O&M for pump plants, conveyance and storage. Basis is total annual O&M cost for LVP divided by total annual District raw water sales.
SUB-TOTAL $210.29/af Additional charge for use of Los Vaqueros Facilities.

EXHIBIT 2 – Costs for Water Service to Brentwood Customers Within CCWD

The principle is the District charges for wholesale raw water for municipal customers with a non-recording meter, with adjustments for purchased water and power. Rates shall be based assuming a meter necessary to supply 0.67 afa or 1200 gpd maximum day per actual connection (typical 5/8” service connection) and total water use capacity is based on the number of actual equivalent connections times 0.67 afa or 1200 gpd maximum day. Rates are as established in the CCWD code of regulations and are subject to change from time-to-time by the CCWD Board of Directors.

This example assumes rates in effect as of June 30, 2002 . The principle is full cost of service based on CCWD’s municipal wholesale, non-recording metered service, less the direct purchase costs of CVP water, plus the added costs of delivering ECCID water.”

COMPONENT Example cost for 2002 ($ per af) BASIS FOR ACTUAL CHARGES
Conveyance Shall be based on raw water municipal rates for non-recording metered service. Ref 4.iii.a
Raw Water Quantity $433.55/af 5.20.010 C, $1.3306/1000 gallons
Raw Water Demand, non recording meter $22/af 5.20.010 E, $1.464/gpm/month (based on typical max day per connection)
Raw Water Service Charge $10/af 5.20.010 B, $121.77/month
Less CVP water ($48.90/af) Current approximate CVP cost of water. Subtracted unless CVP water is used because ECCID water is not available.
Less CVP power ($3.68/af) Current approximate CVP power cost. Subtracted unless CVP water is used because ECCID water is not available.
Plus pumping $6.81/af This is the estimated cost to pump ECCID water using alternate District power sources (e.g. MID power)
Plus wheeling $5.93/af 1999 pass-through charge from Reclamation for using CVP facilities for non-CVP water (FY2002 is $5.93)
SUB-TOTAL $425.71/af
Treatment $174.87/af See Exhibit 3
Contract Administration costs $1/af
GRAND TOTAL $601.58/af

Connection Fee
Example per 5/8” connection
Facilities Component As specified in section 4.iii.b and c
5/8” meter charge $4,213 Per applicable table in section 5.20.010F of CCWD Code of regulations for Los Vaqueros Service Area (Service Area A).
Less Future Water Supply ($1,331) Brentwood supplies future water
TOTAL per connection $2,882


EXHIBIT 3 – Costs for Water Treatment Service to Brentwood Customers

The principle is cost of service (O&M and fixed costs) for treatment of water at the Randall-Bold treatment plant, wear and tear and rental for treatment above 6 mgd. Per acre-foot charges are based on delivered water adjusted for transmission and plant losses. Fixed charges and rental are based on the average of the three largest months of use to date (in million gallons per day [mgd]) divided by CCWD’s capacity (25 mgd).

This example assumes costs as of June 30, 2002 , and assumes total Brentwood consumption of 2,555 af/yr as measured at the Treatment Plant (i.e., including losses through the DWD system) and maximum month of 483 af. Treatment plant losses are added to the water leaving the plant. Charges will be based on Brentwood’s share of actual costs.”

COMPONENT Example cost for 2002
($ per af) BASIS FOR ACTUAL CHARGES
Treatment
Fixed $97.44/af Ratio of Brentwood’s 6 mgd capacity right to CCWD’s 25 mgd (i.e. 6/25ths), multiplied by CCWD’s share of the fixed costs per the JPA with DWD. If the average of the three largest months of use is greater than 6 mgd, then the actual average of the three largest months will be used to calculate the ratio.. This is adjusted annually.
Variable $50.66/af Ratio of Brentwood’s volume to total volume treated at the plant multiplied by CCWD’s variable costs for treatment. This is adjusted annually.
Interest on RBWTP debt $0/af Rental fee for use of the plant for treatment in excess of 6 mgd. Based on the ratio of three largest months use (service to date) to 25mgd, multiplied by CCWD’s share of interest on the debt for the plant. If the average of the three largest months is less than 6 mgd then the rental fee will be waived. If greater than 6 mgd, then the rental fee will be based on the ratio of three largest months use (less 6 mgd) to 25 mgd, multiplied by CCWD’s share of interest on the debt for the plant. For example if the three month average is 7 mgd, Brentwood would pay 1/25ths of CCWD’s debt service payment.,
Wear and Tear $26.77/af Ratio of Brentwood’s annual average day use to 25mgd, multiplied by book value of RBWTP depreciated over 30 years
TOTAL TREATMENT $174.87/af Subject to annual revision based on actual costs

 

City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov