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SUPPLEMENTAL AGREEMENT FOR CONSTRUCTION AND OPERA N� 9�96'
OF THE WHALE ROCK PROJECT S
SAN LUIS ODISFO COUN j
g 12thday d
This agreement entered into this
December 1960 , between the State of California
acting by and through the Director of Finance, hereinafter re-
ferred to as "STATE" and the City of San Luis Obispo, herein-
after referred to as "CITY".
W I T N E S S E T H:
WHEREAS, the State and the City entered into an agree-
ment on the 7th day of November, 1957, for the construction
and operation of a dam and reservoir in San Luis Obispo County,
hereinafter referred to as the Whale Rock Project, and
WHEREAS, the agreement provides that after completion
of the project the City shall operate and maintain it in a
manner that is mutually satisfactory to the parties and as set
forth in amendments and supplements to be entered into between
the parties, and
WHEREAS, the agreement provides that it is the intent
of the parties to execute amendments and supplements to said
agreement which will include specific and detailed items re-
lated to the construction and operation of the project,
NOW, THEREFORE, in consideration of the mutually de-
pendent promises of the parties hereto it is agreed as follows:
I. The Whale Rock Commission is hereby established.
Its membership, internal organization, powers and duties are
as follows:
_y
A. Membership:
I. Voting Members:
(a) Director or Finance, State of Calif-
ornia.
(k)) Director of Education, state of Calif-
ornia
(c) Director of Corrections, State of
California
(d) Mayor, City of San Luis Obispo
(e) Administrative Officer, City of San
Luis Obispo
(f) Director of Finance, City of San
Luis Obispo
2. Non --Voting Members:
(a) Director of Water'Resources, state
of California
(b) stater Superintendent, City of San
Luis Obispo
B. Internal Organization:
1. Any member may be represented at any
meeting of the Commission by a duly authorized representative.
2. A quorum shall consist of a majority
of voting members. The concurrence of two representatives of
the State and two representatives of the City shall be required
before any action can be taken by the Commission.
3. The Commission shall select one of its
members as Chairman and one as Secretary, to serve at the
pleasure of the Commission.
4. The Commission shall hold regular annual
meetings to consider and approve the budget for the next fiscal
year and special meetings when called by the chairman, or by
any three voting members, on five (5) days' notice,
5. All meetings shall be held in the City
Hall of the City of San Luis Obispo unless otherwise specified
in the notice of meeting,
C. Powers and Duties of the Commission:
1. Establish the policies with regard to
the operation and maintenance of the project.
2. Contract for the sale or excess water
from the project or rental of excess capacity of any project
Iicilities, provided any such contract shall be subject to the
approval of the City and the State. Any such sales or rental
shall be made only on a year to year basis and the State and
the city shall each annually declare in advance whether any
excess is available for sale. In case of dPfiripnry nn t-hP
part of any project owner or owners, said project oVmer or
owners shall have first call on the purchase of excess water,
before such excess water is sold to outside agencies. The
not income derived from such sales shall be credited to each
agency in proportion to its percentage of the total excess
available for sale, provided, however, that if the State or the
City declares any water excess for less than a full year, or
otherwise conditions its availability then the net income
credited to said party shall be reduced to the extent that the
saleability of
imposed. the e-ccss eater is affected by the condition
for the project and 3. Consider and approve the annual budget
any proposed amendments and allocate the
annual cost in accordance with the proportionate use of facilities
allocated to each participating agency as set forth in Table 3
on page 51 of the report issued by the State of California,
Department of Prater Resources, dated February, 1957, entitled
"Report on £stlmated Cost of M-iale Rock Project", a copy of
which is on file at the office of the Department of Water
Resources in Sacramento, California.
4. Do all things otherwise necessary to
corduct the business and affairs of the Whale Rock Project.
ll. Operation of the Whale Rock Project.
�1 A. City of San Luis Obispo, in accordance with
the policies established by the commission and the provisions
Of the agreement dated November 7, 1957, between the State of
California, acting by and through the Director of Finance, and
the City of San Luis Obispo, and pursuant to the approved
budget, shall operate and maintain the project, perform re-
pairs and replacements thereon, and construct additions and
improvements thereto, under the charter of the City of San
Luis Obispo. Provided, however, this subsection shall not
become effective until July 1, 19351 or sooner if the Commission
determines the project is ready for operation.
B. Water within the entitlement of the parties
as set forth in the agreement dated November 7, 1957, between
the State and the City, shall be deliverer} to the City, Calif-
ornia State Polytechnic college and California Men's Colony
(herein referred to as the participating agencies) at the times
and in the quantities requested by each; provided, that if the
total of the quantities requested will exceed the capacity of
any project .facility, the requests shall be adjusted so that
the percentage of capacity of the facility to be utilized ny
each participating agency will not e)cceed the percentage of
the capacity allocated to each in Table 3 of the Report re-
ferred to above.
C. Written advance notice shall be given the
City of the dates and quantities of water requested, provided
that oral requests may be made when necessary and confirmed
�n writing.
III. Fiscal Matters and Procedures
A. The City shall prepare the proposed annual
budget in the form adopted by the Commission and distribute
copies thereof to the members at least one month prior to
annual meeting.
B. Allocation of Cost
1. Cost of electrical energy for pumping
and any other costs that vary directly with the quantity of
crater delivered as determined by the Commission shall be
allocated to the participating agencies on the basis of. quan-
tities of water delivered to each.
2. All other operation and maintenance
costs and costs of major repairs and replacements shall be
allocated on the basis of percentages of capacity allocated
to each participating agency in 'fable 3 oL the Report referred
to above.
3. '1110 coat of providing water .for downstream
users shall be allocated on the some basis that the original
cost of the dam was allocated.
4. Cost of additions and improvements
,hall be allocated as mutually agread upon oy the City and
the State.
S. Moneys derived from the sale or lease
Of any project properties or facilities or other revenues
shall be deposited in the city treasury in a separate account
--to the credit of the Whale Rock Project Fund and together
with any interest thereon shall he applied first to pay direct
costs incurred in producing the revenue, and second to the
other operation and maintenance costs and costs of major
repairs and replacements referred to in subparagraph 2 above
of those facilities used to produce the revenue.
�3. Any money in excess of project needs
may be distributed to the agencies in proportion to their
respective interests in such excess,
C. Payment and Expenditure of Project Funds
1. The participating agencies shall con-
tribute quarterly in advance their allocated share of the
costs_ This contribution shall be deposited on or before the
first day of each quarter in a separate account to the credit
j
of the Whale Rock Project Fund in the city treasury.
2. The City may withdraw and expend any
monies in the Whale Rock Project Funds to pay the actual cost
of project operation and maintenance, major repairs and re-
placements thereon, in accordance with the items set forth in
the approved annual budget. costs incurred by the participating
parties and the Commission in connection with the project
shall be part of the cost of project operation, it in accor-
ice with the approved annual budget.
APPkWAL RECOMME ZDs
Department of Correcttons
By
Chief, ___;_r,.:-; cL•-;ices ➢ivision
STATE OF CALIFORNIA
John E. Car hector
Departmen inanca
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By
D[ rY DIR&CTom or �'ixwnc�
CITY OF SAN LU IS OBISPO
APPROVAL RECOMMENDEDs
Dep f uc tion
By CH I ;
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APPROVAL RECOMMMMEDs
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Depar nt of Water Resources
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APPROVED --