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HomeMy WebLinkAbout03.17.2010 WB PACKETCity of Bakersfield Water Board Regular Meeting of March 17, 2010 Bellevue Weir Water Resources File Packet Dav6d Couch, Chaur Haro[d Hanson, V/ cce Chan r Z'Sc S Scfly ev MTV CF sAKERSMELDD CMATIE R BOARD REGULAR MEET G Wedn esdey, March 17, 201 C - 2.00 p.m. Water Resources Building Conference Room 1000 Buena V isia Read, Bakersfield, CA 93311 AGENDA 1, CALL TO ORDER 2. ROLL CALL 3. MOMUTZES A. Minutes of the January 20, 2010, regular meeting for approva: — For Board F eview and Action 4. PUBUC STATEMENTS 5. KERK RAVER LEVEE DOS7RIC7 A. Local Levee Assistance Program Status — For Board Information 6. REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Informatior 7. DEFE7C RED BUSII(I ESS 8. NEW BUSINESS A. Kern River Interests Cost Sharing Agreement for Costs Related ::o Restriction c n use of Isabella Lake Storage Space — For Board Review and Acton B. Agricultural Water Price and Sand Sale Schedule for 2010/11 — For Board Review and Action 0 /0 B A '' r r c T F L D Dav6d Couch, Chaur Haro[d Hanson, V/ cce Chan r Z'Sc S Scfly ev MTV CF sAKERSMELDD CMATIE R BOARD REGULAR MEET G Wedn esdey, March 17, 201 C - 2.00 p.m. Water Resources Building Conference Room 1000 Buena V isia Read, Bakersfield, CA 93311 AGENDA 1, CALL TO ORDER 2. ROLL CALL 3. MOMUTZES A. Minutes of the January 20, 2010, regular meeting for approva: — For Board F eview and Action 4. PUBUC STATEMENTS 5. KERK RAVER LEVEE DOS7RIC7 A. Local Levee Assistance Program Status — For Board Information 6. REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Informatior 7. DEFE7C RED BUSII(I ESS 8. NEW BUSINESS A. Kern River Interests Cost Sharing Agreement for Costs Related ::o Restriction c n use of Isabella Lake Storage Space — For Board Review and Acton B. Agricultural Water Price and Sand Sale Schedule for 2010/11 — For Board Review and Action Water Board Agenda March 17, 2010 Page 2 8. NEW BUSINESS continued C. Domestic Water Division Proposed 2010/11 Rate Schedule – For Board Review and Recommendation to City Council D. South Bakersfield Water Treatment Plant Water Use Agreement - For Board Review and Recommendation to City Council 9. MISCELLANEOUS 10. WATER BOARD STATEMENTS 11. CLOSED SESSION A. Conference with Legal Counsel — Existing Litigation; Closed session pursuant to subdivision (a) of Government Code section 54956.9. (Two Cases) • State Water Resources Control Board Reference No. KMG:A31674 • Kern Delta Water District v. North Kern Water Storage District, and City of Bakersfield (1952 CEQA action) KCSC Case No. S- 1500 -CV- 266459 KCT 12. CLOSED SESSION ACTION 13. ADJOURNMENT di2 W < k JOHN W. STINSON Assistant City Manager POSTED: March 12, 2010 Water Board Meeting MINUTES March 17, 2010 A. Minutes of the January 20, 2010, regular meeting for approval — For Board Review and Action OF THE WATER BOARD - ClITY OF BAKERSMELD Wednesday, January 20, 2010 - 2 :00 p.m. Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 '^,I ^JUTES Chairman Couch called the meeting to order at 2:05 p.m. 2. ROLL CALL Present: Chairman Couch, Vice -Chair Hanson, Member Scrivner Absent: None 3. MINUTES A. Minutes of the October 14, 2009 regular meeting. Motion by Scrivner to approve the minutes with a correction to the Roll Call to reflect members Manson and Scrivner were present at the meeting. APPROVED ALL AYES 4. PUBLIC STATEMENTS Dennis Fox spoke regarding weeds in canals; the reservoir at Hart Park; and the possibility of a water bank tour in July. KERN 5. RIVER LEVEE %E E- I TRICT1 A. FEMA Levee Accreditation Mark Lambert, Water Resources Superintendent, gave a brief update of the levee work. He stated the geological field work is completed and additional survey field work will be completed in February. A preliminary report will be provided in May; with final completion evaluation report provided in early September. A grant up to $225,000, in matching funds from the State will be received for the levee program. Information only, no action taken. 6. REPORTS A. Kern River & Isabella Reservoir Operations Report. John Stinson, Assistant City Manager, introduced John Ryan, Hydrographic Supervisor. John Ryan, Hydrographic Supervisor, gave a brief update, stating Isabella Dam is at 110,560 acre feet of storage ending 2009; with the recent storm activity, snow pack is 84% of average for April -July. Information only, no action taken. Bakersfield California, January 20, 2010 — Page 2 7. DEFERFCED I,! r) rte A. Independent Contractor's Agreement with Stetson Engineers, Inc. for Engineering Services related to Urban Water Planning and Water Needs Studies. h1lotion by Hanson to approve Agreement No. 10 -01 Ivith Stetron Engineers, h7v in the amount of $31,000, to update the Urban Water Mai7agetne"t Plat APPROVED, ALL AYES. 9. MISCELLANEOUS A. Tentative 2010 Water Board meeting schedule. Motion by Hanson to approve the proposed 2010 Water Board meeting dates: January 20; March 17; May 12; July 14; September 15; and November 10. APPROVED, ALL AYES. 10. WATER BOARD STATEMENTS None 11. CLOSED SESSION None 12. ADJOURNMENT Chairman Couch adjourned the meeting at 2:20 p.m. David Couch, chairman City of Bakersfield Water Board Bobbie Zaragoza, Secretary City of Bakersfield Water Board Water Board Meeting March 17, 2010 KERN RIVER LEVEE DISTRICT A. Local Levee Assistance Program Status — For Board Information Water Board Meeting March 17, 2010 REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Information W Q O I-- O cr. W Cl) w m Q J J W m Q Cl) as a W W O ?� W c J N W N O J LL. J Q Q Z m W Z m W Y ON � LO N O LC O N C\ N T dN003S d3d 1334 oiano LO O LO O I- LO N D CZ a� n r 7 r c al 2 WE c. Q 0 co 2 O_ .Q N LL. O c co rn 0 U N CA O O Z Cn O U 0 (S1SOLIIUGJed Ul uOIJBAG13) 333V Ul 3E)VUOlS o� 0OL oO L o C) L o o o: o O0 0 L a a p ON O � p 0 LO o OO p 0 a a O of O O w p O '0 Ln O co (o N Lo N Ln N "t N N Ch N M N N N N N T T =V Lo N O ON � LO N O LC O N C\ N T dN003S d3d 1334 oiano LO O LO O I- LO N D CZ a� n r 7 r c al 2 WE c. Q 0 co 2 O_ .Q N LL. O c co rn 0 U N CA O O Z Cn O U 0 B120 (03/09/10 1448) Department of Water Resources California Cooperative Snow Surveys Mar 1, 2010 FORECAST OF UNIMPAIRED RUNOFF (in thousands of acre -feet) April -July Forecast April Percent 80% thru of Probability July Average Range -------------------------------------------------------------------------------- NORTH COAST Trinity River at Lewiston Lake 740 113% 540 - 1060 Scott River near Fort Jones 130 65% SACRAMENTO RIVER Sacramento River above Shasta Lake 360 121% McCloud River above Shasta Lake 410 105% Pit River above Shasta Lake 840 79% Total inflow to Shasta Lake 1680 92% 1240 - 2580 Sacramento River above Bend Bridge 2170 87% 1540 - 3600 Feather River at Oroville 1400 79% 800 - 2590 Yuba River at Smartsville 870 87% 510 - 1440 American River below Folsom Lake 1010 81% 560 - 1840 SAN JOAQUIN RIVER Cosumnes River at Michigan Bar 85 68% 25 - 220 Mokelumne River inflow to Pardee 410 89% 290 - 650 Stanislaus River below Goodwin Res. 630 90% 460 - 1020 Tuolumne River below La Grange 1170 96% 910 - 1790 Merced River below Merced Falls 640 101% 500 - 990 San Joaquin River inflow to Millerton Lk 1330 106% 1050 - 1920 TULARE LAKE Kings River below Pine Flat Res. 1350 110% 1070 - 1940 Kaweah River below Terminus Res. 310 108% 240 - 480 Tule River below Lake Success 61 96% 42 - 134 Kern River inflow to Lake Isabella 470 102% 350 - 770 NORTH LAHONTAN Truckee River,Tahoe to Farad accretions 195 75% Lake Tahoe Rise, in feet 0.9 65% West Carson River at Woodfords 42 77% East Carson River near Gardnerville 150 80% West Walker River below Little Walker 135 88% East Walker River near Bridgeport 54 85% Water -Year (WY) Forecast and Monthly Distribution Oct Water 80% WY thru Feb Mar Apr May Jun Jul Aug Sep Year Probability % Jan Range Avg -------------------------------------------------------------------------------- Trinity, Lewiston 223 154 170 245 290 155 50 12 8 1310 1055 - 1710 94 Inflow to Shasta 1695 835 880 650 480 310 240 215 210 5515 4735 - 7120 90 Sacramento, Bend 2585 1350 1240 855 615 400 300 260 260 7865 6720 - 10460 88 Feather, Oroville 630 315 520 580 485 220 115 90 75 3030 2135 - 4805 66 Yuba, Smartville 225 135 250 330 370 135 35 20 15 1515 1035 - 2275 64 American, Folsom 215 155 290 385 420 170 35 10 5 1685 1100 - 2775 62 Cosumnes, Mich.Bar 32 30 56 45 29 9 2 1 0 204 100 - 430 52 Mokelumne, Pardee 50 30 60 120 180 95 15 3 2 555 410 - 840 74 Stanislaus, Gdw. 105 65 100 195 260 140 35 10 0 910 690 - 1410 78 Tuolumne, LaGrange 195 105 160 280 465 360 65 15 5 1650 1360 - 2370 85 Merced, McClure 115 70 85 155 265 175 45 10 5 925 750 - 1330 92 San Joaquin, Mil. 190 100 135 255 505 430 140 40 15 1810 1440 - 2490 99 Kings, Pine Flat 190 85 115 235 505 440 170 35 15 1790 1470 - 2460 104 Kaweah, Terminus 66 34 40 75 120 90 25 6 3 459 370 - 660 101 Tule, Success 17 20 20 28 20 10 3 1 0 119 90 - 220 80 Kern, Isabella 85 35 50 100 170 135 65 20 10 670 520 - 1030 92 Notes: 50 year averages are based on years 1956 to 2005. Unimpaired runoff represents the natural water production of a river basin, unaltered by upsteam diversions, storage, or by export or import of water to or from other watersheds. Forecasted runoff assumes median conditions subsequent to the date of forecast. Runoff probability ranges are statistically derived from historical data. The 80% probability range is comprised of the 90% exceedance level value and the 10% exceedance level value. The actual runoff should fall within the stated limits eight times out of ten. Forecast point names are based on USGS gage names. x w 0 z 0 Cl) Z w U) W O q q q q q q C:) LO 0 LO 0 LO 0 It co co C\j C\j T — (say 4oul) ;ua4uoo J048M 9 q LO C ro C .0 -80 (D r– LL 0 E c CL 0 r_ cn a) -0 E a) L) E O 0 Z OD < (+ N C\j 0 C, C\j - -- - - - - - - - - - --- - - - - - - - - - - - - - - - - - - - - O 7 N < N 6 e 0) LO I I - - - - - - - - - -- - -- - - - - - - -- r- 0 0 C� O 0 C\j cli 00 ------- --- ----- . . . . -- --- - -- -- ------- Qi < ,7 LO 0 O N C\j do OC) 0 O -- – – – – – - – – 0) IM < Cb 150 0 It -------- ----- ------ - --- -------------- - -- ----- III ---- O q q q q q q C:) LO 0 LO 0 LO 0 It co co C\j C\j T — (say 4oul) ;ua4uoo J048M 9 q LO C ro C .0 -80 (D r– LL 0 E c CL 0 r_ cn a) -0 E a) L) E O 0 Z x w 0 z 0 0 ® N O s U U r 0 w O O O O O O O O O 0 LLj 0 O N 0 LO O LO O T T (sayOUI) IUa;UO3 aaI8AA Q Q s U C� L�d p� �04® LL E p� Ril C� (Z r_ cn i O E N U N n N E N O Z Water Board Meeting 8. NEW BUSINESS March 17, 2010 A. Kern River Interests Cost Sharing Agreement for Costs Related to Restriction on use of Isabella Lake Storage Space -- For Board Review and Action KEEN GIVER Il 91E'RESTS COST ""HARING AGPEEMEi``-rT FOR COSTS RELATING TO UNITED STATES ARMY CORPS OF ENGINEERS RESTRICTION'S CAN U'E OF I ABLU-A RESc OIR S`I%3" Paz SPACE THIS AGREEMENT is made and entered into on , by and between those California public agencies holding all right, title and interest in and to the conservation storage space at Isabella Dam and Reservoir, namely BUENA VISTA WATER STORAGE DISTRICT, CITY OF BAKERSFIELD, KERN COUNTY WATER AGENCY, KERN DELTA WATER DISTRICT, and NORTH KERN WATER STORAGE DISTRICT. These public agencies are sometimes referred herein collectively as "Parties" RECITALS WHEREAS, The Parties are signatory, successor in interest, or otherwise interested parties to the certain contract and agreement dated October 23, 1964, entitled "Contract Among the United States of America and the North Kern Water Storage District, Buena Vista Water Storage District, Tulare Lake Basin Water Storage District, and Hacienda Water District," and are vitally interested in maintaining all right, title and interest to the conservation storage in Isabella Reservoir; and WHEREAS, on April 20, 2006 the United States Army Corps of Engineers ( "Corps ") convened a Seepage Advisory Panel for the purpose of evaluating information regarding a seepage condition at Isabella Auxiliary dam, and to make recommendations for short term measures to address the seepage situation; and WHEREAS, on April 27, 2006 the Corps, acting upon technical advice of the Corps Dam Safety Committee, declared an emergency deviation and by letter dated April 28, 2006 took over from the Kern River Watermaster the process of operating the storage and release of water at Isabella Dam and Reservoir, including ordering the restriction of storage; and WHEREAS, on June 26, 2006 control of operating storage and release of water at Isabella Dam and Reservoir was returned to the Kern River Watermaster; and WHEREAS, as a result of the ordered restriction on storage at Isabella Dam and Reservoir a substantial quantity of Kern, San Joaquin, Kaweah, Tule and other water, utilized for irrigation and replenishing the groundwater basin in the San Joaquin Valley portion of Kern County for future beneficial uses, was diverted into Kern River Interests Cost Sharing Agreement for Isabella Reservoir and Dam -- Page 1 of 6 Pages -- i- er-ile. and nia /- ',queduct and forever !c ,t to tiie region; ci ;nd VVH FA , ire Corps tics indicate; that i-! , intands to ccnd'Uct invesiigation, rnoriitoring, study ai�d pic�nning -io dev_,!op both sh<.�ri-anc ionC�- icrrii plans concerning seep -age a.t Auxiliary dim and MlCt d ei.Sl T'iiC ar iC s; %I!i� %,�CZ'y� associated v /ithl Isabella Darn and Reservoir ( "Stn.ictural Investigations "); and VVHILEVEAS, the Corps has indicated that until the structural Investigations are complete it anticipates that the, restrictions on full storage at Isabella Dam and Reservoir will continue; and WHEREAS, EAS, the Parties have determined it necessary Ihai-the Corps commit all necessary resources (financial, manpower, time etc,) and take all necessary action to minimize to the fullest extent possible, consistent with the public safety, the exteni and duration of any operation restriction at Isabella Dam and Reservoir; and WHEREAS, the Parties have determined that it is imperative that certain expert consultants be retained to advise the Parties on issues regarding Isabella Darn and Reservoir and to ensure the Corps complete the necessary Structural Investigations expeditiously and with the least impact on Isabella Dam and Reservoir; and WHEREAS, the Parties previously entered into a cost sharing agreement on August 1, 2006 for these purposes and that agreement expired in August 2007. NOW, THEREFORE, it is agreed by and between the Parties as follows: ay Scope: This agreement provides the terms for the sharing of specified costs relating to obtaining necessary expert advice and technical information from certain consultants qualified to assist the Parties in expediting the completion of the Structural Investigations initiated by the Corps. The objective of the agreement is to facilitate the Parties goal to minimize the restriction in the operation of Isabella Dam and Reservoir during the pendency of the Structural Investigations, 2) Consultants: a) Engineering: An expert engineer qualified to advise the parties with regard to technical issues relating to seismology, hydrology, seepage, dam safety, Corps rules, regulations and procedures, and other matters as determined by the Committee will be selected and retained by legal counsel for the Watermaster on behalf of the Parties, Kern River Interests Cost Sharing Agreement for Isabella Reservoir and Dam -- Page 2 of 6 Pages -- b) Governmental Relations: An expert in government relations qualified to advise the parties with regard to Corps rules and regulations, legislation, and Congressional Funding and appropriations, and other maiters as determined by the Committee will be selected and retained by legal counsel for the Watermaster on behalf of tho parties. c) Legal: An attorney to advise the Parties with regard to various legal master, concerning Isabella Dam and Reservoir, including but not limited to the Corps restrictions on use of the conservation storage space, and additional issues. d) Other: Other such experts qualified to advise the Parties on additional matters as determined by the Committee necessary to achieving the purpose of this agreement will be addressed as necessary by the Parties. e) Procedure: Any proposal to retain or terminate a specific expert advisor ( "Consultant ") shall be decided by the Parties following recommendation by the Committee. 3) Managers Committee: a) Ad Hoc Committee: The Parties agree to form an ad hoc committee composed of the Kern River Watermaster, and one representative from Buena Vista Water Storage District, City of Bakersfield, Kern County Water Agency, Kern Delta Water District, and North Kern Water Storage District. In addition, each member shall designate an alternate to serve in the event its representative is unable to participate in the work of the Committee. The Watermaster shall serve as the chairman of the Committee and provide prior written notice to members of the Committee of the meetings. b) Committee Responsibilities: The Committee shall have the following responsibilities: 1) Recommend to the Parties that certain Consultants be retained; 2) Prepare and recommend to the Parties appropriate written consultation agreements; 3) Determine the appropriate scope of work and budget of any consultant; 4) Supervise all work of the Consultants; Review and approve payment of Consultant invoices; and 6) Make other reports and recommendations to the Parties as appropriate. The Committee shall endeavor to reach a consensus on all decisions, but in the event a unanimous decision is not possible, a majority vote of the Committee (exclusive of the Watermaster who is a non - voting member of the Committee) is sufficient, c) Trust Account: The Watermaster shall establish a designated trust account ( "Account ") for the purpose of paying the shared costs authorized by this Agreement. The Watermaster shall direct payment, in the manner and Kern River Interests Cost Sharing Agreement for Isabella Reservoir and Dam -- Page 3 of 6 Pages -- oi- nour,,t doter -nined and opproved by the Committee, fron-) the Account in or(Jer fo r lake timely payment of the shared fees, cos'- and exi�enses of f�l� I Cons1_1i1onts. d) Frocelcli,Ure,: 1 h , �CVafC?I'maS':�3r shCiil ( "�rorY1l:�lly IJrtJ \ /Idr a r,Op)� Of Ctil C;r >! "`7SlAltCjfii in�,oic:es covered try tl�is Agreementto eaci� mernbc -;r ofii�e Cor��mit c; ar�t� ,,c hedule a telephone conference, in order for each CoFr f tee member fe promptly review the invoices and notify the Watermaster of his/tler cipproval, disapproval or recommended adjustment to a Consultant invoice, In a fli -rely manner, the Committee shall review and approve, as H- deems appropriate, and direct payment of the Consultant invoices. e) Funding.; The Parties will allocate and transfer to the Account, in the percentages specified in subparagraph 3(f)(1) of the Agreement, monies necessary and approved by the Committee to fund the work of the Consultants. The Watermaster shall notify the Parties, as the Committee determines appropriate, when it is necessary that the Parties allocate and transfer to the Account additional monies, up to the authorized funding limit stated in paragraph 3(f)(2), in order to maintain a balance in the account sufficient to pay the necessary and proper fees, costs and expenses of the consultants. f) Cost Sharing: 1. Funding Contributions: The initial funding of the Account, periodic replenishment of funds to the Account, and payment of all fees, costs and expenses of the consultants approved by the Committee, shall be allocated as between the Parties as follows: Buena Vista Water Storage District -- 32% City of Bakersfield -- 14% Kern County Water Agency -- 12% Kern Delta Water District -- 14% North Kern Water Storage District -- 28% 2. Funding Limit: The total cost sharing authorized by the Parties to this Agreement shall not exceed one - hundred fifty thousand dollars ($150,000.00) absent the prior written consent of all the Parties. Any funds remaining in the Account at the expiration of this agreement shall be promptly refunded to the Parties in proportion to the contributions made pursuant to Paragraph 3(f)(1). Kern River Interests Cost Sharing Agreement for Isabella Reservoir and Dam -- Page 4 of 6 Pages -- 4) Term: This Agreement shall become effective on the first day of April, 2010 provided (it Parties have executed tPiis agreement on or before -That date, Once effeJive this afire :ment shall continue in full force and effect for -i-wo (2) years following the effective date of ii l� Agreemeni, unless renewed in writing by all of the Parties. 5) Miscellaneous: a) Notices: Written Notices to Parties hereunder shall be sufficient if delivered to the principle office of the respective Party. b) Amendments: This Agreement may be amended, or renewed, in writing at any time and from time to time by unanimous consent of all the Parties. c) Complete Agreement: The foregoing constitutes the full and complete Agreement of the Parties. There are no oral understandings or agreements concerning the subject matter of this Agreement not set forth in writing herein. d) Severability: Should any part, term or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any applicable Federal law or any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions hereof shall not be affected thereby. e) Multiple Originals: This Agreement may be executed in counterparts, each of which shall be deemed an original. f) Water and Contractual Rights Not Affected: No right of any of the Parties in or to any of the waters of Kern River is intended to be, or shall be, by the terms hereof, transferred, granted or conveyed to any other party to this agreement. This Agreement does not and shall not vary, modify, limit, waive or abandon any right or rights, whether arising by law or contract, of any of the Parties hereto in or to Isabella Reservoir storage or the flow or flows of the waters of Kern River, or any part thereof. This Agreement shall not be construed as granting or conferring any right or rights in or to the waters of Kern River. g) Precedent: The terms and conditions of this Agreement do not constitute and shall not be construed to be any form of precedent with regard to any future agreement among the Parties with regard to a Kern River Association or any other subject. All Parties expressly reserve all claims, rights and interests with regard to any such subjects and future agreements. Kern River Interests Cost Sharing Agreement for Isabella Reservoir and Dam -- Page 5 of 6 Pages -- P i t C 3 b I a J GJ rt }r E : i� t.'r, tl�le parries he;reio have ca�sea i�,�iiSA���r�. r��l rlt exe>cu ed, 1-he c_,Rov and year first -above vvriiten. By: "CITY" HARVEY HALL Mayor APPROVED AS TO FORM: Oily Afforney By: VIRGINIA GENKRARO APPROVED AS TO CONTENT: Water Resources Department r c, F By Title: Kern Do4ta Water DW —rict By:_ Title: By: By:— JOHN W. STINSON Assistant City Manager Title: COUNTERSIGNED: :. NELSON SMITH Finance Director ME North Kern Water Storage District By:— Title: Kern River Interests Cost Sharing Agreement for Isabella Reservoir and Dam -- Page 6 of 6 Pages -- Water Board Meeting 8. NEW BUSINESS continued March 17, 2010 B. Agricultural Water Price and Sand Sale Schedule for 2010/11 — For Board Review and Action CITE' OF BAKERSIFRE1LD WATER RESOURCES DEPARTMENT AGRICULTURAL WATER ENTERPRISE 2010 WATER PRICE AND SAND SALE SCHEDULE The following recommended water prices reflect the current normal water supply conditions occurring throughout the San Joaquin Valley. Of the seven (7) water price categories shown below, items l through 4 are established by existing contracts. The water rate for item 5 is dependent upon local water supply. The rate for Kern River Canal & Irrigating Co. irrigation water (item 6) is established substantially in accordance with Public Utility Commission guidelines. These water rates would remain in effect until conditions warranted changes or adjustments to these prices. For information and reference, the 2008 and 2009 schedule for surface water rates are shown for comparison (price per acre - foot). *7) Third Party use of Olcese Water Wells .......................... $29.00 $32.00 $32.00 *Plus power costs associated with operation of 2800 Acre water wells when applicable. Note: To encourage maximum use within the Kern River groundwater basin, water prices in categories number 4 and 5 may be reduced 50% during periods of mandatory flood control release and /or encroachment into the flood control storage space at Isabella Reservoir. For sand sales from City -owned river channel properties, the following rate would remain in effect until conditions warranted changes: ITEM PRICE 1) Sand Removal Sales ...................... ............................... $ 0.50 per cubic yard (plus sales tax when applicable) Actual 2008 Actual 2009 Effective May 1, 2010 (71 % of Normal (65% of Normal (102% of Normal Type of Water Water Year) Water Year) Water Year est.) 1) Basic Contract Water ................... $20.00 $20.00 $20.00 2) City "Borrow /Payback" $30.18 $28.55 $30.38 Contract Water .......................... *3) City Kern River and /or Banked Water sold for domestic, recreational or other uses.......... $80.74 $76.34 $81.24 4) Miscellaneous Kern River Water that would otherwise be used for groundwater banking . ............................... $17.27 $16.34 $17.39 5) Miscellaneous Kern River Water sold for crop $32.00 $35.00 $35.00 irrigation .......................... 6) Kern River Canal & $21.66 $25.91 $25.91 Irrigating Company .......................... *7) Third Party use of Olcese Water Wells .......................... $29.00 $32.00 $32.00 *Plus power costs associated with operation of 2800 Acre water wells when applicable. Note: To encourage maximum use within the Kern River groundwater basin, water prices in categories number 4 and 5 may be reduced 50% during periods of mandatory flood control release and /or encroachment into the flood control storage space at Isabella Reservoir. For sand sales from City -owned river channel properties, the following rate would remain in effect until conditions warranted changes: ITEM PRICE 1) Sand Removal Sales ...................... ............................... $ 0.50 per cubic yard (plus sales tax when applicable) Water Board Meeting 8. NEW BUSINESS continued March 17, 2010 C. Domestic Water Division Proposed 2010/11 Rate Schedule — For Board Review and Recommendation to City Council MEMORANDUM March 12, 2010 TO: Alan Tandy, City Manager FROM: John Stinson, Interim Water Resources Manager SUBJECT: PROPOSITION 218 DOMESTIC WATER FEE HEARING NOTICE Customer and /or property owners receiving domestic water service from the City of Bakersfield Water system will be mailed a notice of a public hearing to be held on June 9, 2010, to consider a proposed increase in the quantity unit charge. The quantity rate is currently $0.88 per hundred cubic feet unit. The proposed rate will increase by $0.03 to $0.91 per unit on October 1, 2010. The quantity rate change will increase the typical single family residential monthly water bill by 2.5% on October 1, 2010. The notices will be mailed as inserts in each customer's monthly bill, meeting the requirements of the law, beginning March 20, 2010 and completed by April 20, 2010. As of January 31, 2010, there were 39,358 metered service connections on the system. In addition there were 480 non - metered "fire service" connections. This totals 39,838 notices that will be sent on the hearing. Of course, the system is adding new customers on a regular basis, with between 50 to 70 new customers per month; therefore the actual number of sent notices will be higher. Only the customers and /or property owners of record, as identified by the billing registers for customers of the City of Bakersfield Water System, will receive a notice, since they are the only ones the City is required to provide a notice. In addition, the hearing will be posted in the local general circulation newspaper, which is also required by law. The City of Bakersfield Water Board will be apprised of this proposed rate increase at the March 17, 2010 meeting. Attached is a copy of the notice that will be inserted in customer's bill beginning the latter part of March 2010. B A K E R S F I E L D MEMORANDUM March 12, 2010 TO: Alan Tandy, City Manager FROM: John Stinson, Interim Water Resources Manager SUBJECT: PROPOSITION 218 DOMESTIC WATER FEE HEARING NOTICE Customer and /or property owners receiving domestic water service from the City of Bakersfield Water system will be mailed a notice of a public hearing to be held on June 9, 2010, to consider a proposed increase in the quantity unit charge. The quantity rate is currently $0.88 per hundred cubic feet unit. The proposed rate will increase by $0.03 to $0.91 per unit on October 1, 2010. The quantity rate change will increase the typical single family residential monthly water bill by 2.5% on October 1, 2010. The notices will be mailed as inserts in each customer's monthly bill, meeting the requirements of the law, beginning March 20, 2010 and completed by April 20, 2010. As of January 31, 2010, there were 39,358 metered service connections on the system. In addition there were 480 non - metered "fire service" connections. This totals 39,838 notices that will be sent on the hearing. Of course, the system is adding new customers on a regular basis, with between 50 to 70 new customers per month; therefore the actual number of sent notices will be higher. Only the customers and /or property owners of record, as identified by the billing registers for customers of the City of Bakersfield Water System, will receive a notice, since they are the only ones the City is required to provide a notice. In addition, the hearing will be posted in the local general circulation newspaper, which is also required by law. The City of Bakersfield Water Board will be apprised of this proposed rate increase at the March 17, 2010 meeting. Attached is a copy of the notice that will be inserted in customer's bill beginning the latter part of March 2010. NOTICE OF PUBLIC HEARING BEFORE THE COUNCIL OF THE CITY OF BAKERSFIELD NOTICE IS HEREBY GIVEN that a protest hearing accepting testimony will be held before the Council of the City of Bakersfield on Wednesday, June 9, 2010, 5:15 p.m., or as soon thereafter as the matter may be heard, in the Council Chamber of City Hall, 1501 Truxtun Ave., Bakersfield, CA 93301. The purpose of the hearing is to receive and consider input regarding an increase in the quantity rate for domestic water service from the City of Bakersfield. Pursuant to Chapters 14.04, 14.06 and 14.08 of Title 14 of the Bakersfield Municipal Code, the City of Bakersfield Domestic Water System provides residents and customers a pure, clean and wholesome water supply in quantities and under sufficient pressure for all ordinary and proper uses. Charges for water service are paid directly by property owners and /or occupants through bills rendered monthly. In compliance with Proposition 218, property owners and /or customers of the City of Bakersfield Domestic Water System are hereby informed of a proposed increase in the quantity rate on the monthly bill. Your water service is included in this action, and is identified in the accompanying bill enclosed in this mailing. The quantity rate is currently $0.88 per hundred cubic feet unit. The proposed rate will increase by $0.03 to $0.91 per unit on October 1, 2010. No adjustment to the readiness -to -serve charge is proposed. A typical residential customer will see a total increase of $0.84 per month. Due to new water supply programs, the cost of meeting water quality standards and the general inflation rate, expenditures have increased 2.5 %. This increase is proposed to be effective October 1, 2010. If you need additional information on the water services provided by the City or on the proposed quantity charge increase, please contact the Water Resources Department at (661)326 -3715. WRITTEN PROTESTS may be filed with the City Clerk at any time prior to the conclusion of the hearing. If you challenge the action taken on this proposal in court, you may be limited to addressing only those issues raised at the public hearing, or in written correspondence delivered to the City Clerk of the City of Bakersfield, 1600 Truxtun Avenue, Bakersfield, CA 93301, prior to the close of the hearing. Dated: March 18, 2010 Please Conserve Water! ROBERTA GAFFORD, CMC City Clerk and Ex Officio Clerk of the Council of the City of Bakersfield c O > Q � U c6 U � � U � C O Cc to -00 � Y C � a5 E > Y CC Co Q� o p cn c CU > co O E _Fz K� U- LL i N df3 O 0 0 ca co 0 U) cc N Qi M tf3 C L > '- 0 0 0 O ca V co U C C) r c C � N O N E 25 LL 3 O O c r pp O U O «? _ O y 00_ > N T LL N uJ () c Y U TNMa%)OrCM df3 O N N O O O M O afl B� N M; T T N M fe O O N d0' 0 a�M w 0 N .' 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NEW BUSINESS continued March 17, 2010 D. South Bakersfield Water Treatment Plant Water Use Agreement - For Board Review and Recommendation to City Council AGREEMENT AGREE MEMF ON USE OF SOUTH BAKERG iELD WATER °F BEA`I-MENT PLANT THIS AGREEMENT is made and encored into on by and between the CITY OF BAKERSFIELD, a charter city and municipal corporation, ( "CITY" herein) and, CALIFORNIA WATER SERVICE COMPANY, a California public utility water corporation, ( "CAL WATER" herein). E I T A L S WHEREAS, CAL WATER and CITY intend to provide an additional treated drinking water supply to their respective service areas in South Bakersfield by the construction of a new water treatment plant (South Bakersfield Water Treatment Plant or "SBWTP" herein) to be located on CAL WATER's property known as Station 146, located southeast of the intersection of Pacheco and Stine Roads in Bakersfield; and WHEREAS, CITY intends to use Kern River water accruing to its rights for water supply to the SBWTP; and WHEREAS, the SBWTP is to be supplied with Kern River water via the CITY's Carrier Canal and through a raw water pipeline; and WHEREAS, CAL WATER and CITY desire to share on in the use of finished drinking water supply from the SBWTP and in the costs and expenses associated with its planning, design, construction, start -up, operation and maintenance; NOW, THEREFORE, incorporating the foregoing recitals herein, CITY and CAL WATER mutually agree as follows: 1. Exhibit "A" is attached hereto showing the location of the SBWTP at Station 146, near the intersection of Pacheco and Stine Roads in the City of Bakersfield. 2. Exhibit "B" is attached hereto showing the raw water conveyance system that will transport water to the SBWTP and the areas generally to be served the treated drinking water within CAL WATER's and CITY's respective water service areas. 3. Exhibit "C" is attached hereto showing CITY's projected schedule for supplying water to meet the demands of the SBWTP. 4. USE OF STATION 146 SITE. CAL WATER shall, in addition to the use of Station 146 as the site for its five drinking water wells, use the property for constructing and operating the SBWTP, which will be owned and operated by CAL WATER. Page I of 9 4.1 SOUTH BAKERSFIELD WATER TREATMENT FLAN". CAL WATER shall be solely responsible for the financing, design, construction, operation and maintenance of the SBWTP facilities at Station 146. The SBWTP will be operated to provide a treated drinking water supply to CAL WATER and CITY domestic water systems, respectively. Initial nominal design capacity will be 20.0 million gallons per day (mgd). The plant will be designed so that at a later date to be agreed upon by the parties, its capacity can be expanded to approximately 40.0 mgd. It is anticipated that CITY and CAL WATER shall share equally (50/50) in the water produced by the plant in accordance with provisions of this agreement, however, since growth in future demand may occur differently in each party's service area, both parties agree to reassess the percentage of treated plant water to be allocated to each party at the time planning for expansion of the SBWTP occurs. CAL WATER shall not purvey, convey, trade, exchange or sell in any manner the water produced from the SBWTP to any persons, entity or agencies outside the incorporated boundaries of the City of Bakersfield without the express written consent of CITY. 4.2 ADDITIONAL FACILITIES. CAL WATER shall be responsible for the financing, design, construction, operation and maintenance of any additional facilities required for the SBWTP. Such facilities needed for the SBWTP may include a raw water intake structure and appurtenances, canal bypass structure, sanitary sewer connections, pumping plants and pipelines. The inclusion of any of such facilities shall be approved by CITY before being made part of the SBWTP. 5. UNTREATED WATER SUPPLY. CITY shall make available to CAL WATER a surface water supply to meet the requirements of the SBWTP. CITY shall provide up to Twenty Two Thousand Four Hundred Fifty (22,450) acre feet of supply for the coming year in accordance with a schedule to be provided by CAL WATER each January. It is intended that the SBWTP be expanded to treat up to Forty Four Thousand Nine Hundred (44,900) acre feet per year. CAL WATER and the CITY will mutually agree on the timing of the expansion, and for the CITY or others to provide an additional raw water supply of up to Twenty Two Thousand Four Hundred Fifty (22,450) acre feet per year. 6. UNTREATED WATER QUALITY. The City believes the raw Kern River water supplied for the SBWTP is suitable as a raw water source. CAL WATER understands the water specified for delivery under this agreement is untreated and requires treatment that complies with Federal, State, and local requirements in order to make the water suitable for public drinking water purposes. CAL WATER shall be solely responsible for testing said water and for any and all treatment which may be necessary to bring the water into conformity with any and all present and future Federal, State, and local domestic water quality and health requirements prior to its delivery to its customers and the CITY. CAL WATER recognizes that Kern River water delivered to the SBWTP will first be conveyed through the CITY's Carrier Canal and diverted into pipeline. CAL WATER agrees that it shall be responsible for the quality of water through the SBWTP, and for testing and properly treating the water. By execution of this Agreement, CAL WATER expressly waives any and all legal remedies against CITY, Page 2 of 9 arising from CITY's delivery of non - potable water to the SBWTP. CAL WATER shall indemnify, defend, and hold CITY harmless from and against any and all claims for failure to deliver potable water that conforms to Federal, State, and local domestic water quality standards or requirements to its and the CITY users. CITY agrees that when it has Knowledge of conditions or events that r -1ay have adversely affected the quality of water to be or in fact delivered to the SBWTP, it shall make every effort to promptly inform CAL WATER of said conditions or events so that CAL WATER may take appropriate actions. 7e COMPENSATp ®N TO C117Y. To compensate CITY for CITY Kern River water delivered hereunder, CAL WATER shall pay CITY Fifty -five Dollars ($55.00) for each acre foot of water that is determined to be processed and delivered to the SBWTP for use in CAL WATER's service territory. The price is subject to annual adjustment on the basis of the January 1999 Producer Price Index for "All Commodities" published by the Bureau of Labor Statistics of the U. S. Department of Labor and first adjustment shall occur in January of the year following execution of this Agreement. The price as stated shall include all costs CITY may incur in pumping, exchange and storage fees in delivering Kern River water through the Carrier Canal system. Payment in full shall be made to CITY within thirty (30) days after mailing of an itemized invoice to CAL WATER. The due date on the invoice shall be clearly set forth and shall be thirty (30) days beyond the billing date. CITY shall bill CAL WATER for quantities delivered to the SBWTP. CAL WATER shall not assess or levy any charge of any kind or type to CITY for delivery of said water for CITY use in CITY service territory after processing at CAL WATER's SBWTP. Failure to pay CITY in full within thirty (30) days of the due date shall subject CAL WATER to late fees. Reasonable late fee amounts (not to exceed 6% on unpaid balance) may be assessed by CITY and shall be paid by CAL WATER upon demand. In the event of failure by CAL WATER to pay the charges provided in this Section 4.2, CITY shall be entitled to exercise all remedies for default provided in this Agreement. 6. SALE OF TREATED WATER AND PAYMENT TO CAL WATER. CITY will purchase from CAL WATER a supply of treated finished water from the SBWTP. The treated water shall meet or exceed any and all applicable present and future Federal, State or local standards and regulations for drinking water. CITY agrees to purchase at least 11,225 acre -feet per year of finished water from CAL WATER, commencing on June 1, 2013 and continuing through, May 31, 2014 and annually thereafter. City shall pay the rate per acre -foot provided for by this paragraph multiplied by the amount of water actually delivered. CAL WATER will invoice the CITY on a monthly basis for all water sold and delivered to CITY in the preceding calendar month. CITY shall pay all amounts properly invoiced no later than thirty (30) days after receipt of the invoice. In the event of default by the CITY, CAL WATER will be entitled to exercise all remedies for default provided in this Agreement. CAL WATER will make every reasonable effort to deliver the quantities described herein to the CITY subject to requirement that the raw water quantities provided in this Agreement have been delivered to the SBWTP. The amount of treated water provided to the CITY by CAL WATER shall be determined through metering records of the finished water pumps Page 3 of 9 located at the SBWTP site. The first year price the CITY pays to CAL WATER for delivered troated water from the SBWTP is estimated to be Six: Hundred Sevent Dollars 67LOO) per acre -foot, with the final price to be determined after CAL WATER has determined total actual project costs for preliminary engineering, pilot plant testing, design, construction, construction engineering services and management, project management, legal, administration and financing slid estimates of annual operations and maintenance costs. CAL WATER shall submit documentation for its costs incurred or estimated for review and approval by the CITY, which approval shall not be unreasonably withheld or delayed. Components of the CITY's price for treated water from the SBWTP are comprised of: i) Actual operations and maintenance costs for the SBWTP, including power, labor, benefits, chemicals, waste disposal, parts, supplies, outside services, and reasonable supervision expenses not to exceed 10% of preceding totals; ii) Debt service for the total Project cost; iii) California Public Utilities Commission authorized reasonable rate of return on investment, currently estimated at 8.58 %; iv) The franchise fee payable to CITY on account of such sale of water and all real and personal property taxes payable on account of the SBWTP; v) Raw water and transportation and conveyance costs. CAL WATER shall submit documentation for its costs incurred or estimated for review and approval by the CITY, which approval shall not be unreasonably withheld or delayed. The price shall be adjusted annually for the operations and maintenance component, based on the adjustment percentage allowed in CAL WATER's agreement with the CITY designated as No. 92 -250, paragraph 9 and for the franchise fee and real and personal property taxes based on actual costs. The charge for Rate of Return on investment shall be adjusted concurrently with adjustment by the California Public Utilities Commission for the period approved for such adjustment. 9. ADDITIONAL CAPITAL IMPROVEMENTS. In the event CAL WATER determines that it must install additional capital improvements to the SBWTP in order to meet new or changed Federal, State, or local water quality standards, or comply with any other legal requirements, CAL WATER will determine the total project costs for the said improvements and present them to the CITY for review and approval. CITY shall provide CAL WATER with its written acceptance of said additional capital improvements and their total project costs. The capital facilities costs shall be adjusted for all finished water delivered to CITY using the agreed upon actual costs of the additional capital improvements in accordance with the provisions in Section 8. Page 4 of 9 10. REVIEW BY CALIFORNIA PUSUC UTIILIT ES COMMNSS0N. The rights and obligations of CAL WATER under this Agreement may be subject to the review by the California public Utilities Commission (CPLJC) in the Course of rate review, or other proceedings. In the event CPLJC fails to approve rates established for the C.-al Water Bakersfield District, or finds such charges imprudent, as a result of this Agreement, then CITY and CAL WATER shall immediately begin negotiations to amend the Agreement in a commonly satisfactory manner in an attempt to resolve issues resulting in such CPUC action, provided that none of the parties shall be excused from performance of the Agreement. 11. ACCOUNTING RECORDS. CITY and CAL WATER shall maintain accurate records and other written documentation pertaining to all costs incurred in performance of this Agreement. Such records and documentation shall be kept at each party's office during the term of this Agreement and said records shall be made available to CITY or CAL WATER representatives upon proper request. 12. ASSIGNMENT. This Agreement shall not be assigned by any party, or any party substituted, without prior written consent of all parties. 13. BNDING EFFECT. The rights and obligations of this Agreement shall inure to the benefit of, and binding upon, the parties to the Agreement and their heirs, administrators, executors, personal representatives, successors and assigns. 14. CEQA. This agreement is not subject to CEQA as CEQA has already been completed for the Project. 15. WATER RIGHTS. This Agreement does not create any water rights for CAL WATER, and does not waive, transfer or relinquish any water rights on behalf of the CITY. 16. CITY INSURANCE. CITY represents it is self-insured and will, throughout the term of this Agreement, maintain its insurance program. CITY warrants that, at all times during the term of this Agreement, it shall have and maintain workers' compensation insurance in compliance with the Labor Code of the State of California. 17. COMPLIANCE WITH ALL LAWS. CAL WATER shall, at CAL WATER's sole cost, comply with all of the requirements of Municipal, State and Federal authorities now in force or which may hereafter be in force, pertaining to this Agreement, and shall faithfully observe in all activities relating to or growing out of this Agreement all Municipal ordinances and State and Federal statutes, rules or regulations, and permitting requirements now in force or which may hereafter be in force including, without limitation, obtaining a City of Bakersfield business tax certificate (Bakersfield Municipal Code Chapter 5.02) where required. Page 5 of 9 18. CONFIDENTIALITY. During the term of this Agreement, CAL WATER will be dealing with information of a legal and confidential nature, and Such information could severely damage CITY if disclosed to outside parties. CAL WATER will not disclose to any person, directly or indirectiy, either during the term of this Agreement or at any time thereafter, any such information or use such information other than as necessary in the course of this Agreement. All documents CAL WATER prepares and confidential information given to CAL WATER under this Agreement are the exclusive property of CITY. Under no circumstances shall any such information or documents be removed from the CITY without the CITY's prior written consent. CITY is subject to the Public Records Act and cannot maintain confidential records unless allowed by said Act. CITY understands CAL WATER may, through the Public Utilities Commission, be required to release documents. It shall not be a violation of this Agreement to release documents or information which are required by law to be public. 19. CORPORATE AUTHORITY. Each individual signing this Agreement on behalf of entities represents and warrants that they are, respectively, duly authorized to sign on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Agreement. 20. DEFAULT INTEREST. In the event of a default by any party to this Agreement, the non-defaulting party shall be allowed to recover interest on all damages at the legal rate from the date of the breach. 21. EXECUTION. This Agreement is effective upon execution. It is the product of negotiation and all parties are equally responsible for authorship of this Agreement. Section 1654 of the California Civil Code shall not apply to the interpretation of this Agreement. 22. EXHIBITS. In the event of a conflict between the terms, conditions or specifications set forth in this Agreement and those in exhibits attached hereto, the terms, conditions or specifications set forth in this Agreement shall prevail. All exhibits to which reference is made in this Agreement are deemed incorporated in this Agreement, whether or not actually attached. 23. FURTHER ASSURANCES. Each party shall execute and deliver such papers, documents and instruments, and perform such acts as are necessary or appropriate, to implement the terms of this Agreement and the intent of the parties to this Agreement. 24. GOVERNING LAW. The laws of the State of California will govern the validity of this Agreement, its interpretation and performance. Any litigation arising in any way from this Agreement shall be brought in Kern County, California. Page 6 of 9 25. JOINT LIMITATION ON LIABILITIES AND INDEMNIFICATION. 25.1.1 Neither party shall be liable to the other party for any loss, damage, liability, claim or cause of action for damage to or destrtiction of property or for injury to or death of persons arising solely from any act or omission of the other party's officers, agents or employees. 25.1.2 CITY and CAL WATER agree to indemnify and hold each other harmless from any and all claims, demands, liabilities, losses or causes of action which arise by virtue of its own acts or omissions (either directly or through or by its agents, officers or employees) to such extent and in such part as the respective parties are found by reason of law to have proximately caused the injury or damage. 25.1.3 The party against whom any claim arising from any subject matter of this Agreement is filed shall give prompt notice of the filing of the claim to the other party. 26. MERGER AND MODIFICATION. This Agreement sets forth the entire Agreement between the parties and supersedes all other oral or written representations. This Agreement may be modified only in a writing approved by the City Council and signed by all the parties. This agreement is independent of other agreements between CITY and CAL WATER, and does not modify any prior, separate agreements. 27. NEGATION OF PARTNERSHIP. CITY shall not become or be deemed a partner or joint venturer with CAL WATER or associate in any such relationship with CAL WATER by reason of the provisions of this Agreement. CAL WATER shall not for any purpose be considered an agent, officer or employee of CITY. 28. NEWS RELEASES/INTERVIEWS. All news releases, media interviews, testimony at hearings and public comments relating to this Agreement by CAL WATER shall be prohibited unless authorized by CITY. 29. NO THIRD PARTY RIGHTS. Except as provided in Section 3 hereof, nothing in this Agreement, whether express or implied, either is intended or shall be construed or otherwise interpreted as conferring any rights or remedies on any third parties. 30. NO WAIVER OF DEFAULT. The failure of any party to enforce against another party any provision of this Agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time, and shall not serve to vary the terms of this Agreement. 31. NON-INTEREST. No officer or employee of CITY shall hold any interest in this Agreement (California Government Code section 1090). Page 7 of 9 32. NOTICES. All notices relative to this Agreement shall be given in writing and shall be personally served or sent by certified or registered mail and be effective upon actual personal service or depositing in the United States mail. The parties shall be addressed as follows or at any other address designated by notice: CITY: CITY OF BAKERSFIELD City Hall 1600 Truxtun Avenue Bakersfield, CA 93301 CAL WATER: CALIFORNIA WATER SERVICE COMPANY 1720 North First Street San Jose, CA 95 33. FORCE MAJEURE. All obligations of the CITY other than monetary or payment obligations shall be suspended for so long as and to the extent performance thereof is prevented, directly or indirectly, by earthquakes, fires, tornadoes, acts of war, facility failures, floods, strikes, other casualties, other acts of nature, orders of court or governmental agencies having competent jurisdiction, or other events or causes beyond the control of the CITY. 34. POSSESSORY INTEREST TAXES. CAL WATER's interest hereunder may be subject to property taxation and CAL WATER, as a party in whom a possessing interest is vested, may be subject to the payment of property taxes levied on such interest, and shall pay all such possessory interest taxes. 35. RESOURCE ALLOCATION. All obligations of CITY under the terms of this Agreement are subject to the appropriation and allocation of resources by the City Council. 36. REMEDIES. The remedies provided in this Agreement are cumulative and are in addition to any other remedies in law or equity which may be available to CITY. The election of one or more remedies shall not bar the use of other remedies unless the circumstances made the remedies incompatible. 37. TAX EFFECT. None of the parties (nor such parties' counsel or accountants) has made or is making in this Agreement any representation to any other party (or such party's counsel or accountants) concerning any of the tax effects or consequences on the other party of the transactions provided for in this Agreement. Each party represents that it has obtained, or may obtain, independent tax advice with respect thereto and upon which it, if so obtained, has solely relied. 38. TAX NUMBERS. "CAL WATER's" Federal Tax Identification No. 94- 0362795 . "CAL WATER" is a corporation? Yes X No (Please check one.) Page 8 of 9 39. TERM. This Agreement shall commence upon date of execution and continue for a term of thirty five (35) years, after which the Agreement shall automatically renew for successive ten (10) year periods unless terminated by either party in writing 180 days prior to the termination date of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first above written. "CITY" "CAL WATER" CITY OF BAKERSFIELD CALIFORNIA WATER SERVICE COMPANY As HARVEY L. HALL Mayor APPROVED AS TO FORM: la VIRGINIA GENNARO City Attorney APPROVED AS TO CONTENT: WATER RESOURCES DEPARTMENT 13 JOHN W. STINSON Interim Water Resources Manager COUNTERSIGNED: am NELSON SMITH Finance Director Attachments: EXHIBIT "A" EXHIBIT "B" EXHIBIT "C" S:\201000NTRACTS\\CWSCOBAgreement 3/12/2010 0 Title: CALIFORNIA WATER SERVICE COMPANY 0 Title: Page 9 of 9 EXHORT "C" Proposed Plan of Delivery of City of Bakersfield's Kern River Water to California Water Service Company for BK218 Water Filtration Plant Introduction CITY Kern River water supplies vary in quantity from year to year. The CITY's first and highest priority use of its water supplies is to provide drinking water to its customers whether served directly by CITY or CAL WATER. Water supplies available to CITY for diversion to the CAL WATER SBWTP may fluctuate on an annual basis, during normal hydrologic conditions, CITY will make every effort to meet daily treatment plant flow requirements as indicated in the herein table entitled "DELIVERY SCHEDULE ". The parties recognize the term "critically" dry year is based on a number of factors and conditions and therefore agree to confer and mutually agree as to when a "critically" dry year is occurring or is about to occur and to what extent reductions and restrictions in the quantity of water delivered to the filtration plant will be made. An analysis, by CITY, of the annual water supplies that will be made available to CAL WATER was performed utilizing historical data and review of CITY water right yields. RESPONSIBIITIES: CffTY shall: 1.) Honor all presently existing agreements, contracts or documents referring to provisions to supply Kern River water; 2.) Make best use of its acquired surface storage reservoir space to maximize conservation of water for SBWTP deliveries; 3.) Operate its "2800 Acres" banking and extraction facility to supplement Kern River flows during critically "dry" conditions to provide minimum base flows to filtration plant; 4.) Formulate exchanges or trades of water supplies in anticipation of any annual shortages of CITY water; 5.) Exercise the provisions of certain contracts for priority use of Kern River water within CITY boundaries and on CITY properties. CAL WATER shall: 1.) Project annual delivery schedule required to meet filtration plant requirements including demands for maximum and minimum month & maximum and minimum day; 2.) Optimize use of alternative water supply sources, both treated surface and groundwater resources, in years of critically dry or low flows on the Kern River; 3.) Use best efforts to regulate receiving Kern River waters into the SBWTP to minimize peaks and dips in flows. 4.) Place orders for water delivery to the SBWTP through the Dispatch section of CITY agricultural water division. Orders are to be placed and confirmed on a daily basis. Annual Delivery ScheduRe The annual delivery schedule is developed to quantify projected water deliveries for the SBWTP under various hydrologic conditions on the Kern River. CITY will deliver water in conformance with the Delivery Schedule shown below when the CITY has the capability to do so. However, CITY may deliver water consistent with "critically" dry provisions as described below if hydrologic conditions warrant. The City's diversion and use of Kern River water is entirely dependent on a number of variable conditions, including the flow of water in the river. If, as a result of such variable conditions, it is necessary for the City to change the delivery schedule, it shall promptly inform Cal Water and negotiate a mutually agreeable alternative schedule. DELIVERY SCHEDULE Note: (MGD) is million gallons per day (AF) is acre -feet (CFS) is cubic feet per second Revised Deliveries If CAL WATER desires to vary its delivery schedule, it may do so by submitting a revised schedule to CITY no later than February 1 of the year for which CAL WATER desires to vary schedule. CITY shall review and advise CAL WATER of its approval of the revised schedule for that remaining year by March 1 of that year. CITY will make reasonable efforts to deliver the water according to the approved revised schedules. The inability of CAL WATER to accept water when tendered by CITY in accordance with an agreed upon schedule shall be deemed to be water delivered under terms of this Agreement. PLANT MAXIMUM PEAK MINIMUM LOW ANNUAL YEAR CAPACITY MONTH FLOW MONTH FLOW TOTAL (MCD) (AF) (CFS) (AF) (CFS) (AF) [2013 20 22,450 Note: (MGD) is million gallons per day (AF) is acre -feet (CFS) is cubic feet per second Revised Deliveries If CAL WATER desires to vary its delivery schedule, it may do so by submitting a revised schedule to CITY no later than February 1 of the year for which CAL WATER desires to vary schedule. CITY shall review and advise CAL WATER of its approval of the revised schedule for that remaining year by March 1 of that year. CITY will make reasonable efforts to deliver the water according to the approved revised schedules. The inability of CAL WATER to accept water when tendered by CITY in accordance with an agreed upon schedule shall be deemed to be water delivered under terms of this Agreement. Water Board Meeting 11. CLOSED SESSION March 17, 2010 A. Conference with Legal Counsel — Existing Litigation; Closed session pursuant to subdivision (a) of Government Code section 54956.9. (Two Cases) State Water Resources Control Board Reference No. KMG:A31674 Kern Delta Water District v. North Kern Water Storage District, and City of Bakersfield (1952 CEQA action) KCSC Case No. S- 1500 -CV- 266459 KCT A ADMINISTRATIVE REPORT LIFOI WATER BOARD MEETING DATE: March 17, 2010 AGENDA SECTION: Closed Session ITEM: 11. A. TO: David Couch, Chairman Harold Hanson, Commissioner Zack Scrivner, Commissioner FROM: Virginia Gennaro, City Attorney DATE: February 23, 2010 DEPARTMENT HEAD APPROVED W CITY ATTORNEY V(S-' SUBJECT: Conference with Legal Counsel — Existing Litigation Closed session pursuant to subdivision (a) of Government Code section 54956.9 (Two cases). • State Water Resources Control Board Reference No. KMG:A31674 • Kern Delta Water District v. North Kern Water Storage District, and City of Bakersfield (1952 CEQA action) Kern County Superior Court Case No. S- 1500 -CV- 266459 -KCT VG:dll SAWATER\Waterboard \09 -10 Clsessadmin \03- 17- 10existlit.Doe 2/23/2010