Article 2. General Powers And Duties of California Water Code >> Division 6. >> Part 3. >> Chapter 3. >> Article 2.

The provisions of this article are subject to the provisions of Chapter 4 of this part.

The department shall have full charge and control of the construction, operation, and maintenance of the project and the collection of all rates, charges, and revenues from it.

The department shall proceed with the construction of the project immediately upon funds being available therefor and shall carry such work to completion as rapidly as possible.

The collection of rates, charges, and revenues shall be continued as provided in this part until all bonds issued are fully redeemed and paid.

Under such regulations and upon such terms, limitations, and conditions as it prescribes, the department may do any of the following:
  (a) Fix and establish the prices, rates, and charges at which the resources and facilities made available by the project shall be sold and disposed of.
  (b) (1) Enter into contracts and agreements and do any and all things which in its judgment are necessary, convenient, or expedient for the accomplishment of the purposes and objects of this part.
  (2) The contracts and agreements may include provisions for the indemnification of parties with whom the department contracts as necessary to accomplish the purposes and objects of this part, except that the contracts and agreements may not include provisions for the indemnification, including indemnification for any costs of defense, of any party to those contracts or agreements for that party's acts or omissions involving negligence, gross negligence, recklessness, or willful misconduct or for acts or omissions involving negligence, gross negligence, recklessness, or willful misconduct on the part of that party's employees, agents, or contractors.
  (3) The Legislature finds and declares that the amendments made to this subdivision during the 1997 portion of the 1997-98 Regular Session are declaratory of existing law.

The department shall enter into such contracts and fix and establish such prices, rates, and charges so as at all times to provide revenue which will afford sufficient funds to pay all costs of operation and maintenance of the works authorized by this part, together with necessary repairs and replacements thereto, and which will provide at all times sufficient funds for redemption of all bonds and payment of interest thereon, as and when such costs and charges become due and payable.