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EXHIBIT 2 <br />FIRST AMENDMENT TO AGREEMENT <br />THIS FIRST AMENDMENT TO AGREEMENT is entered into on March 5, 2012, by <br />and between Bakersfield Well and Pump Company, a California corporation ("Contractor") and <br />the City of Santa Ana, a charter city and municipal corporation organized and existing under the <br />Constitution and laws of the State of California ("City"). <br />RECITALS: <br />A. The parties entered into Agreement A-2011-032, dated February 7, 2011, (hereinafter "said <br />Agreement") by which Contractor has provided water well and booster pump maintenance and <br />repair services. <br />B. In accordance with the terms and conditions of said Agreement, the City hereby exercises its <br />first option to renew, and the parties agree to add compensation to pay for services during the <br />extended term of said Agreement. <br />WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all <br />the terms and conditions of said Agreement, except those amended in this First Amendment to <br />Agreement, the parties agree as follows: <br />1. Section 2.a., COMPENSATION, shall be deleted in its entirety and replaced with the <br />following: <br />"a. City agrees to pay, and Contractor agrees to accept as total payment for its services, the <br />rates and charges identified in Exhibit B-1, attached hereto and incorporated by this <br />reference. The total sum to be expended among all contractors providing these services shall <br />not exceed $300,000.00, annually, during the term of this Agreement." <br />2. Pursuant to Section 3, TERM, the City hereby exercises its option to renew the term for an <br />additional one-year period, through December 31, 2012. All services provided since January <br />1, 2012 shall be included within this renewal term. The City shall have the option to renew <br />this Agreement, on the same terms and conditions, for up to two additional one-year periods. <br />3. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in <br />full force and effect. <br />/// <br />25B-7