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HomeMy WebLinkAboutAgenda Bill 3.A 10/04/2004CITY'OF PETALUMA, CALIFORNIA AGENDA ' BILL OCT 4 2004 A'enda Title:. Resolution Authorizing a, City Manager to Execute Meeting Date: A'First,Amended Funding Agreement With the Sonoma County October 4, 2004 Water Agency to Receive,Funding in the Amount of $2,197,913 in Support of the Phase 1 Recycled Water Pipeline Project Meeting Time: X 3:00 PM Q 7:00 PM Category (check one): ,X C.onsent Calendar ❑ Public Hearing ❑ New Business ❑ Unfinished Business ❑ Presentation Department: Director: Contact,Person: Phone Number: Water Resources & Michael -Ban, P':E., Michael Ban, P.E. :778-4487 Conservation 'Cost of Proposal: This proposal. would provide additional outside Account Number: funding to the project in the amount of $642,302, and would reduce 602-400-9995-7112 the City's direct costs for the project. Name of Fund: Amount Budgeted:.N/A Wastewater Enterprise Attachments to Agenda Packet Item: Agenda Report Resolution Summary Statement: The City completed the Phase 1 Recycled, Water Pipeline Project in August 2004. This project involved installation .of approximately 19,000 feet of 2.0'4nch diameter pipeline to convey secondary recycled water from'the City's oxidation ponds to Rooster Run .Golf Course for turf irrigation. In the future this pipeline will be the'backbone for distribution of tertiary recycled water. In 2003, the City received $1,555,611 in funding for this project through the Water. Advisory Committee's LRT2 Water Conservation Program. , In 2004, the Water Advisory, Committee approved an additional amount of $642,302 in FY 04-05, for a new total funding amount of $2,197,913. An. amendment to the funding agreement with the Sonoma •County'Water Agency is' necessary to procure these funds. This agreement will provide over 62% of the, funds for the project. Recommended City Council Action/Suggested ,Motion:. City ,Management recommends that the City Council adopt the resolution authorizing the City Manager. to execute a first amended funding agreement with the Sonoma County Water Agency to receive funding in support of the Phase 1 Recycled Water Pipeline Project. Ile 'e- ed, by Finance Director' Date: SEP 2 Todavljbate: r� xc:.File,-9995—11.0:5 Reviewed by City Attorney: 'Approved. by .Citv'Manaeer: o04 Date: Date: n, 1 Revision #1 and' Date • File Code: S:\water resources& Revised conservation\Wastewater\9995\city councihoctober 4 - # 1 9/22/04 2004\scwa agenda cover.doc AUTHORIZING THE CITY MANAGER TO.EXECUTE A FIRST AMENDED FUNDING AGREEMENT WITH THE SONOMA COUNTY WATER AGENCY TO RECEIVE FUNDING IN THE AMOUNT OF $2,197,193 IN SUPPORT OF THE PHASE 1 RECYCLED WATER PIPELINE PROJECT PROJECT NO. 9995 WHEREAS, the Phase 1 Recycled Water Pipeline Project, Project No. 9995 ("Project") was completed in August 2004; and WHEREAS, the project involved the construction of approximately 19,000 feet of 20-inch diameter pipeline to convey secondary recycled water from the City's oxidation ponds at 4400 Lakeville Highway to Rooster Run Golf Course; and WHEREAS, it is estimated that the annual amount of potable water saved by this project is equivalent to the annual amount of water used by over 900 households; and • WHEREAS, this pipeline -will convey, secondary recycled water to Rooster Run Golf Course in the near term, and serve as the backbone of the City's urban recycled water program in the long term; and WHEREAS, in FY 03-04 the City received $1,555,611 in funding from the LRT2 Water Conservation Program in support of this project through a funding agreement with the Sonoma County Water Agency, which was approved by the City Council in October 2003; and WHEREAS, in December 2003, the Water Advisory Committee approved an additional funding amount of $642,302 for FY 04-05, for a total project funding aniount of $2,197,913; and WHEREAS, a first amended funding agreement with the Sonoma County Water Agency is necessary to procure the additional $642,302 in funds; NOW'BE IT RESOLVED by the Petaluma City Council that: • 1. The above recitals are true and correct and hereby declared to be findings of the City Council of the City of Petaluma. 2. The City Manager is hereby authorized and directed to execute a funding agreement with the Sonoma County Water Agency subject to the review and approval of the City Attorney. 3. This resolution shall become effective immediately. 4. All portions of this resolution are severable.. Should any individual component of this resolution be adjudged to be invalid and unenforceable by a body of competent, jurisdiction, then the remaining resolution portions shall be and continue in full force and effect, except as to those resolution portions that have been adjudged invalid. The City Council of the City of Petaluma hereby declares that it would have adopted this resolution and each section, subsection, clause; sentence, phrase and other portion thereof, irrespective of the fact that one of more section subsection, clause sentence, phrase or other portion may be held invalid or unconstitutional. • W CITY OF PETALUMA, CALIFORNIA OCTOBER 4, 2004 AGENDA REPORT FOR RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE X FIRST AMENDED FUNDING ACREEMENT WITH THE 'SONOMA COUNTY WATER AGENCY TO RECEIVE FUNDING IN THE AMOUNT OF $2,197;913 IN SUPPORT OF THE PHASE I RECYCLED WATER PIPELINE PROJECT 1. EXECUTIVE SUMMARY: The City completed the Phase 1 Recycled Water Pipeline Project in August 2004. This project involved installation of .approximately 19,000 feet of 20-inch diameter pipeline to convey secondary recycled water from the City's oxidation ponds to Rooster Run Golf Course for turf irrigation. In the future this pipeline will be the backbone for distribution of tertiary recycled water. In 2003, the City received $1,555,611 in funding for this project through the Water Advisory Committee's LRT2 Water Conservation Program. In 2004, the Water Advisory Committee approved an additional amount of $642,302 for FY 04-05, for a new total funding amount of $2,197,913. An amendment to the funding agreement with the Sonoma County Water Agency is necessary to procure these funds. This agreement will provide over.62% of the funds for the project. • City Management recommendsthat the City Council adopt the resolution authorizing the City Manager to execute a first amended funding agreement with the Sonoma County Water Agency to receive funding in support of the Phase 1 Recycled Water Pipeline Project. 2. BACKGROUND: This project included construction of approximately 19,000 .feet of 20-inch diameter pipeline to convey secondary recycled water from the City's oxidation ponds at 4400 Lakeville Highway to Rooster Run Golf Course. It is estimated that the annual amount of potable water saved is equivalent to the annual amount of water used by over 900 households. This pipeline will convey secondary recycled water to Rooster Run Golf Course in the near term, and serve as the backbone of the City's urban recycled water program in the long term. The location of the pipeline is shown the attached figure. In accordance with the City Council direction provided on February 25, 2002, the Department of Water Resources and Conservation designed the Phase 1 Recycled Water Pipeline Project. The Notice Inviting Bids was issued on May 22, 2003. Bids were received and opened on July 3, 2003. On August 4, 2003, the City Council awarded the construction contract to TerraCon Pipelines, Inc., of Healdsburg, California. - On August 16, 2004, the Council accepted the completion of this project. Under the Water Agency Contractor's Local Supply/Recycled Water/Tier 2 Water Conservation Funding Program (LRT2 Program), the Water Agency Contractors are contributing $13 million 1 SAwater resources & conservation\Wastewater\9995\city councihoctober 4 - 2004\agenda report - firstamended scwa funding agreement.doc over a -10-year period to fund water conservation measures, develop recycled water projects that • offset potable water use, and develop standby local peak -month production capacity that reduces demand on the Agency's water transmission system. On October 11, 2002, the City submitted a request to the Water Advisory Committee (WAC) for $2,197,913 in funding for the Phase 1 project. On November 18, 2002, the WAC approved the City's request for funding,a portion of the Phase 1 Recycled Water Pipeline Project in the amount of $1,555,611 for FY 03-04. This funding -has been provided to the City. On December 1, 2003,_the WAC approved Petaluma's request for an additional' $642,302 in funding for FY 04-05. This additional funding is now available to the City. In. order to procure the funds for this project, the City must execute an amendment to its funding agreement (Agreement) with the Sonoma County Water Agency. A copy of the First Amended Agreement is provided in Attachment A. 3. ALTERNATIVES: 1. Adopt resolution authorizing the City Manager to execute the first amended agreement with the Sonoma. County Water Agency in support of the -Phase 1 Recycled Water Pipeline Project. 2. Take other action as directed by the City Council. 3. Take no action. 4. FINANCIAL_ IMPACTS: • As shown on August 16, 2004, when the City Council accepted completion of the project, the estimated total cost of the project is $3,535,000. This is illustrated in Table 1. Table 1 Estimated Total Project Cost Item Cost Construction $2,70.0,000 Engineering 360,000 Administration/Construction Management/Inspection/Testing 340,000 General Fund Overhead 135,000 Total Cost $3,535,000 Approving the resolution will qualify the City to receive an additional $642,302 in funding, for a total funding amount of $2,197,913,. which constitutes over 6211i0 of the total project cost. 0 2 SAwater resources & conservation\Wastewater\9995\city councihoctober 4 - 2004\agenda report - first amended scwa:funding agreement.doc • 5. CONCLUSION: .Approving the resolution will allow the City to procure additional funds in support of the Phase 1 Recycled Water Pipeline Project. ' Onte the City Council approves the resolution, the Agreement will be considered by. the Sonoma County Board of Supervisors (Board). Upon approval of the Board, the Agreement will be executed and the City can begin submitting invoices for project expenditures. 6. OUTCOMES OR .PERFORMANCE MEASUREMENTS THAT WILL .IDENTIFY SUCCESS OR COMPLETION: Additional funding for the project. 7. RECOMMENDATION: City Management recommends the City Council adopt the resolution authorizing the City Manager to execute an amended funding agreement with the Sonoma County Water Agency to receive funding in support of the_Phase 1 Recycled Water Pipeline Project. 3 S:\water resources & conservation\Wastewaief\9995\city.councihocto6er 4 - 2004\agenda report.- first amended scwa funding agreement.doc • 0 FIRST AMENDED FUNDING AGREEMENT Pj SAwater resources & conservation\Wastewater\9995\city council\october 4 - 2004\agenda report - first amended scwa funding agreement.doc V rik%\rs3scwaLpclrs31u1techwlagremnts\pubinf-wc-watedlwc fnd Ir12-petaluma first amended.doc version:'8/3112004 11:18 AM TW 03/04-02A FIRST AMENDED'AGREEMENT FOR FUN®ING OF CITYOF PETALUMA'S RECYCLED WATER. PROJECT (LRT2 PROGRAM) This Agreement 'is between the Sonoma County Watee Agency;. a body corporate and politic of the State of California (hereinafter "Agency" ); and City of Petaluma: (hereinafter''City"). -RECITALS, A. Agency and City first•entered:'into this,agreement on .Oct6ber30, 2003: B. Agency and City share the goal of promoting 'cost=effective,water conservation measures, recycled water projects that offset.potable water use; 'and °standby "'local peak -month production capacity projects that reduce peak demand on the Agency'svater transmission system. p. C. Pursuant to the -provisions of Section 2.5 of the Eleventh.. Amended Agreement for Water Supply and Section 5(a) of the Memorandum of Understanding ..Regarding Water ' Transmission System Capacity Allocation . During Temporary Inipairme_nt, the Agency may' ,undertake or fund any cost-effective water conservation measure `that will reduce water: demands on the Agency's transmission system and that has been approved by the Water Advisory Committee': �D. Under the Local Supply/,Recycled _WaterfTier 2'Water Conservation Funding Program ,(LRT2 Program), the Agency plans to appropriate and distribute,funds to the water•contractors for:'implementing water conservation measures, developing .recycled water projects that offsets potable water use, Land developing standby local peak -month production capacity thafreduces .demand; on the.Agencys watertransmission system. E: .City intends to construct. a pipeline to ,convey recycled water to Rooster Run Golf Course. (Project). Upon . completion of.the Project, the pipeline .will save 1.1,0, million gallons `of`potable `water annually. F' The Project will:reduce impacts on t_he Agency's'water transmission,system by delivering high -quality recycled water for irrigating the turf and landscape plants at the Rooster Run Go If Course and reducing peak demands on the Agency's water transmission system. G. The Agency previously agreed to fund the ,Project in the amount of $1,655 611, as approved by the Water Advisory Committee on November 18, 2002;. H. On December 1., 2003, the Water Advisory Committee'approved and City is requesting, additional funding for a portion of the construction ,of its Project under the LRT2 Program in the amount of $642,362. Funding is available rfrom allocation, in the category of "Recycled Water Use .Program," within the Agency's Water Transmission -System fund (Account No. 675108, 7277) of the 2003/2004 budget. I. City owns or will acquire, ,and is willing 16 retain ownership of, any property or easements wherein said Project will be constructed and is willing to operate and maintain said :Project,in�perpetuity. J. Agency and City do, mutually desire to. partially fund the construction V'said. Project. K. Agency and, Citywish Ito, expedite construction of said Project. L. This Amended Agreement supersedes -all previous agreements. • AGREEMENT City and Agency agree Las follows: First Amended Agreement for Funding of City of Petaluma's Recycled Water Project (LRT2 Program) RECITALS The above recitals are true and correct. • 2. * COORDINATION City shall coordinate the work with the Agency's Project, Manager, Lynn Hulme (pho I ne: 707-547-19'09; fax: 707-524-3782). ., City's contact shall "be, Mike Ban; - Project' Manager (address: 11 English Street, 136talumai CA ,94952;'phone: 707-778-448*7* fax- 707W76-3635). 3. CITY!S'RESP.ONSIBILITIES City,s - hall complete -the'followirig.at it.& cost and expense, except to the l extent of'Ageincy funding provided for- in Section 4 '661om, A. Envirohrrienta[Documentation: City shall be the, Lead Agency for the Project under ,the requirement s of the California Environmental Quality Act (CEQA) and shall prepare all a propriate'environ mental - V --p I , --- documents. City shall,pro' provide - a.copy ofcthe draft environmental ^ ronmental document to Agency during public review process, and a final,copy- within 30 calendar days of approval of the document. B. Permits: City shall obtain any, permits that may be necessary from Utilities, or regulatory" agencies for construction: of the Project. C. .Right-of-Wav: City shall. acquire and all additi6iial land or easements; w necessary for the construction, of -the'Pr6ject. D. - Design and Surveviho: City shall design the 0i P'rincluding all design surveying "and construction staking; E . Final Plans and'SDecifications: City shall prepare and, provide Agency With 0 final complete set of all Project,donstructiob documerits. F.. insurance 'and Indemnification: City shall 'require its, contractor ,to,insure" a ! rid)6detrihify the Agency us irig: the Janguag6 identified in Attachment A :as :the language : for.Agency insurance and i , hdemnification requirements in !the Bidding ,Documents and shall OroVidei,6Vid6nde, of such . irisufan"; c in 9 form satisfactory to Attachment and indemnification to Agency CY P A is an int6gral-part of this thi G.,I-Bidding: City shall let Prcject.Ltobid. H. -Award: City,',shall aWard,construct16h,' contract to the, lowest responsive and responsible bidder:unless - circurnstaric6s,exist,that would;,prevent:such award. I. Contradt.Adminisiration: Cityshall,,adminlster the contract for construction Prdikt. J., Insr)ection". City shall inspect the'Pnoject. K Notice of Conibl6tion and Record Draw'inds: City shall n file' the Notice' of Cornlpletlon,ia d provide a -_ copy to Agency Within 30, calendat;,dbY6 of-its'filinig." City shall prepare i rep roducible record ,drawinqt;showirig��ariy changes; deletions; or additions to the Project and p rovide-� prpducibi e! set - to - Agency within - a. 45.calendar.days,,of 'filing the NoticO,;of,tornpleition. L. Title-- Aktitle10 all Project facilities constructed, pursuantJo this Agreement shali',vest with" the City. w M. ODeration,and Majhtenancea' City shall accept, ownershlip,and shall operate and'. maintain- Project in perpetuity. , N. Records-' City shall maintain, complete * e-and accurate, records of.all transactions, 1n,dompliance with generally accepted accounting principles for 6nterprisaccp accounting, g u tin ,as promulgated by- American ''Institute of Certified Public, A I c6ountants, and the Governmental Accounting ;Sfandards'Bcard 8- uch records shall be avaiWble,,to, the .Agency at reasonable times for inspection and `analysis. O. Statement of'Costs: Within 610,days , of filing Notice of-Co*mpletion; City' shall, submit, to, A 6 complete accounting, of-City's P . roject-,cos s , gency a statement of corn. t for construction; including change,ordiBrs; P. Bummary RisDort: Within. 60 calendar days of completion of construction• of the Project, City shall prQ.vid&Agency with: a written,!repoftsummarizing how the completed Project�wlll .,reduce demands on the Agelncy'&'water transmission system. Q. Indemnification:, City agrees. to,d6fend, indemnify, hold"harml harmless, and release, Agency, - its officers# -agents:and, employees, from and against any, and all actions, claims,. damages'- liabilities,, or expenses thatmay be asserted by,any person, or entity, including City, arising out -of or in connection First Amended'Agreement f6r Funding of City' of Petaluma's Recycled Water Project (LRT2 Pmgram) 2 with the making,:of•this Agreement or with the performance of City hereunder, excluding liability due to the sole active. negligence or willful misconduct of Agency.. This indemnification obligation is not • limited in any way by.any limitation on: the -amount ortype of damages orcompensation payable. to, or for.City or its agents under workers' compensation acts, disability benefits acts, or other employee benefit acts, In addition, City shall be, liable to.Agency for any loss or damage to Agency property. arising from -or in connection with City's performance hereunder. R. Invoices: City shall invoice the Agency for construction expenses.'incurred. All invoices submitted to t . Agency by City shall include an itemization of expenditures identifying specific construction costs and a narrative describing the. progress made on the, Project during the. invoice period. All invoices shall be clearlymarked with "City of Petaluma, Funding of Recycled Water Project (LRT2 Program), Project./Task No. 3944-03 and Account No. 675108-7277." 4.. AGENCY'S RESPONSIBILITIES A. Reimbursement for Construction -Costs Upon execution of this.Agreement and receipt of an invoice, Agency will reimburse. City for construction'costs-incurred to date for the Project, as authorized herein and as approved'by Agency's Project Manager. Monthly thereafter, upon receipt of invoices thereof, and as approved by Agency's Project Manager, Agency will reimburse City for any additional construction costs, 'including change orders, incurred for. the Project up to a total amount of $2.197.913. B. Total: Total -amount paid to City by Agency for this Project shall. not exceed $2.197.913 & ADDITIONAL REQUIREMENTS A. Excess Costs: City shall'fund all Project costs in excess of $2,197.913. B. Authority to Amend Aareement:' The Agency's General Manager/Chief Engineer and the City's City Manager are authorized to execute amendments that do not increase 'the amount of funding and do not substantially change the scope of the Agreement. ' C. • Proiect Not Completed: If City does not complete -Project, then City shall return to Agency all funds received by City from Agency under this Agreement,'within 60 days of the date City abandons the Project. D._ No Waiver of Breach: The waiver by Agency or. City of'any breach of any term or promise contained in this Agreement shall not. be deemed to be a waiver of such. term or promise or any subsequent breach of the same or any other term or promise contained in. this -Agreement. E. Construction: To the. fullest extent allowed by law, the provisions..of. this Agreement shall be construed and given effect in a -manner that avoids any violation of statute, ordinance, regulation, or law. The parties covenant and agree that in the. event that any ,provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full .force and effect and shall in no.way be affected, impaired, or invalidated thereby. City and Agency acknowledge that they have each contributed to the making of this Agreement and . that, in the event of a dispute .over, the interpretation; of this Agreement,, the language of the Agreement will not be construed against one party in 'favor of the other. City and' Agency .acknowledge that they. have each had an adequate opportunity to consult with counsel in the negotiation and preparation of this' Agreement.. F. No Third -Party Beneficiaries: Nothing contained in this Agreement shall be construed to create.and the parties do not intend to create any rights in third parties. G. ADDlicable Law and Forum-, This Agreement; shall be construed and interpreted according to 'the substantive .law of California excluding the law of conflicts. Any action to enforce the terms of. this Agreement -or for the breach thereof shall be brought and tried in, the County of Sonoma. H. CaDtions: The captions in this,. Agreement are solely -for convenience of reference. They are not a part of this Agreement and shall have no effect on its construction or. interpretation.. I.; Merge r: This writing is intended both as the final expression of the agreement between the parties hereto -with respect to the included terms and as a complete -and exclusive statement of the terms of the Agreement, pursuant to Code of Civil Procedure Section 1856. No modification of this Agreement shall be effective unless and until such modification is evidenced by a writing signed by both parties. First Amended Agreement for Funding of City of Petaluma's Recycled Water Project (LRT2 Program) ' . 3 J. Time of -Essence: Time is and shall be of the essence of this Agreement and everyprovision hereof. First Amended Agreement for Funding of City of Petaluma's Recycled Water Project (LRT2 Program) • IN WITNESS WHEREOF, the .parties, hereto have executed this.Agreement as set forth below. Reviewed as to substance by Agency: Department Head Reviewed as to funds by Agency:. Division Manager - Administrative Services Reviewed as to form by County Counsel: County Counsel CITY OF PETALUMA By: Michael'Bierman, City Manager SONOMA COUNTY WATER AGENCY By: Chair, Board of Directors Date: Attest: County Clerk. and.ex-officio Clerk of the Board of'Di rectors First Amended Agreement for Funding of City of Petaluma's Recycled Water Project (LRT2 Program) 5 ATTACHMENT A WORDING FOR CONSTRUCTION CONTRACT INDEMNIFICATION Contractor. agrees to accept all responsibility for loss or damage to.any person or entity, and to defend, indemnify, hold harmless and release Sonoma County Water Agency, its ..officers, agents, and employees, from and against any and all actions, claims,_ damages; liabilities, or expenses that may be asserted by 'any, person or entity, -including Contractor-, arising out of or. in connection with the performance. of Contractor hereunder, whether .or not there is concurrent negligence. on the part of Sonoma County Water Agency, but excluding liability due to the, sole active negligence or sole, willful misconduct of Sonoma County WaterAgency. This indemnification obligation is not limited in any way by. any limitation on the amount or type of. damages or compensation, payable to nor for Contractor or its agents under Workers'. Compensation acts, disability benefit acts, or other employee benefit acts. . INSURANCE The Contractor. shall obtain insurance acceptable to City .of Petaluma from a company or'companies acceptable to the City. The required documentation of such -insurance shall be furnished to the City at the time Contractor returns the executed contract. The proper insurance shall be provided within ten (10) calendar days.after..the bidder has. -received the notice that the;contract has-been awarded and prior to the City executing the contract and issuinga notice to proceed. The Contractor shall not commence work nor shall he allow his employees or subcontractors or anyone to commence work until all.,insurance required hereunder has been submitted and .approved and 'a notice to proceed has been issued.: • With respect. to performance'of work under. this contract, Contractor shall maintain and shall require .all of its subcontractors to maintain insurance as described below: A. Workers' Compensation Insurance with statutory limits as required by the Labor Code of the State of California. Said policy, shall be endorsed with the following specific language: . This policy shall not be canceled or materially changed without first.giving thirty.(30) .days prior written notice to the Sonoma County Water Agency. B. Commercial General Liability Insurance.covering bodily injury and property damage utilizing an occurrence policy form, in .an amount no less than $1,000,000 combined single limit for each occurrence. Said commercial general liability insurance policy shall, either be endorsed with the following specific.language or contain equivalent language in the policy: 9. The Sonoma County Water Agency, its officers, agents, and employees, are named as additional insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this contract. 2. The inclusion of more than one insured shall not operate to impair the rights of one . insured against another insured, and the coverage afforded shall apply as though separate policies. had been issued to each insured, but the inclusion of more than one insured shall not operate to increase the -limits of the company's liability. 3. The insurance provided herein is primary coverage to the Sonoma County Water Agency i with respect to any insurance or self-insurance programs .maintained by the Sonoma County Water Agency. 4. This policy, shall not be canceled or -materially changed without first giving thirty (30) days prior written'notice to the Sonoma County WaterAgency. First Amended Agreement for Funding of City of Petaluma's Recycled Water Project (LRT2 Program) A-1 C. Automobile Liability 'Insurance covering bodily injury and property damage in an amount no less than $1;000,000 combined single limit for each occurrence. Said insurance shall include coverage for .owned, hired, and non -owned vehicles. Said policy shall be endorsed with the • following language: This policy shall not be canceled or materially changed without first giving thirty..(30) days prior written notice to the Sonoma County Water Agency. 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