The Tehachapi City Council took the next step toward finalizing a water settlement agreement with Tehachapi-Cummings County Water District Monday night. With all five members present, the council unanimously approved a contract setting out how the water district will sell the city imported State Water Project water. Development Services Director Don Marsh told the council that the contract — officially known as a “Term M&I (municipal and industrial) Agreement — is for 10 years with an automatic renewal clause every year unless either party objects to the extension by giving at least 90 days’ notice. In a staff report, Marsh said the city purchases imported water to augment its native groundwater supplies. The city uses imported water to irrigate some parks and school grounds and as recharge water.