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HomeMy WebLinkAbout06.10.2015 WB Agenda Packet Regular MtgCity of Bakersfield Water Board Regular Meeting of June 10, 2015 South Fork of the Kern River at Sierra Way Water Resources File Packet WATER BOARD Harold Hanson, Chair Bob Smith Terry Maxwell CITY OF BAKERSFIELD WATER BOARD REGULAR MEETING Wednesday, June 10, 2015 - 2:00 p.m. Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 AGENDA 1. CALL TO ORDER 2. ROLL CALL 3, MINUTES A. Minutes of the Special Meeting of May 19, 2015 for approval - For Board Review and Action 4, PUBLIC STATEMENTS 5. KERN RIVER LEVEE DISTRICT b, REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Information B. Update on Water Usage in the City's Domestic Water Service Area for May 2015 - For Board Information C. Response to Vice Mayor Hanson's Referral (ID; 588) regarding that staff notify the top water users of the need for them to reduce their water usage - For Board Review and Action D. Update on status of City water supplies from the Kern River. - For Board Information 7. HEARINGS 8. DEFERRED BUSINESS �Pr 0 B A K B R S F I E L D WATER BOARD Harold Hanson, Chair Bob Smith Terry Maxwell CITY OF BAKERSFIELD WATER BOARD REGULAR MEETING Wednesday, June 10, 2015 - 2:00 p.m. Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 AGENDA 1. CALL TO ORDER 2. ROLL CALL 3, MINUTES A. Minutes of the Special Meeting of May 19, 2015 for approval - For Board Review and Action 4, PUBLIC STATEMENTS 5. KERN RIVER LEVEE DISTRICT b, REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Information B. Update on Water Usage in the City's Domestic Water Service Area for May 2015 - For Board Information C. Response to Vice Mayor Hanson's Referral (ID; 588) regarding that staff notify the top water users of the need for them to reduce their water usage - For Board Review and Action D. Update on status of City water supplies from the Kern River. - For Board Information 7. HEARINGS 8. DEFERRED BUSINESS Water Board Agenda June 10, 2015 Page 2 9, NEW BUSINESS A. Presentation by David Beard, Kern County Water Agency, Improvement District 4, regarding Zone of Benefit No. 7 Tax - For Board Information 10, MISCELLANEOUS 11, WATER BOARD STATEMENTS 12, CLOSED SESSION 13. CLOSED SESSION ACTION 14. ADJOURNMENT v,. a"I ART CHIANELLO, P.E. Water Resources Manager POSTED; June 5, 2015 BAKE OF N DRPORATfI ADMINISTRATIVE REPORT IF WATER BOARD O �� MEETING DATE: June 10, 2015 AGENDA SECTION: Minutes ITEM: 3. A. TO: FROM: DATE: SUBJECT: Harold Hanson, Chairman Bob Smith, Member Terry Maxwell, Member Art Chianello, Water Resources Manager June 10, 2015 APPROVED DEPARTMENT HEAD Approval of the Minutes of the Special Water Board Meeting of May 19, 2015. RECOMMENDATION: Staff recommends approval of the Minutes. BACKGROUND: MINUTES OF THE SPECIAL MEETING OF THE WATER BOARD - CITY OF BAKERSFIELD Tuesday, May 19, 2015 - 2:00 p.m. Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 CALL TO ORDER Chairman Hanson called the meeting to order at 2:00 p.m. 2. ROLL CALL Present: Chairman Hanson, Members Maxwell, Smith Absent: None 3. MINUTES A. Minutes of the Regular meeting of February 18, 2015 and Special Meeting of April 8, 2015 for approval. Motion by Maxwell to approve the Water Board minutes of the February 18, 2015 and Special Meeting of April 8, 2015. APPROVED, ALL AYES 4. PUBLIC STATEMENTS A. Dennis Fox, spoke regarding Zone of Benefit # 7. Art Chianello, Water Resources Manager, stated staff will provide a report regarding Zone of Benefit # 7 in the near future regarding what it means to the City of Bakersfield in terms of water supply, costs and other related issues. No action taken 5. REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Information Ill0000,;PF B A iew.- K E R S F I E L D MINUTES OF THE SPECIAL MEETING OF THE WATER BOARD - CITY OF BAKERSFIELD Tuesday, May 19, 2015 - 2:00 p.m. Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 CALL TO ORDER Chairman Hanson called the meeting to order at 2:00 p.m. 2. ROLL CALL Present: Chairman Hanson, Members Maxwell, Smith Absent: None 3. MINUTES A. Minutes of the Regular meeting of February 18, 2015 and Special Meeting of April 8, 2015 for approval. Motion by Maxwell to approve the Water Board minutes of the February 18, 2015 and Special Meeting of April 8, 2015. APPROVED, ALL AYES 4. PUBLIC STATEMENTS A. Dennis Fox, spoke regarding Zone of Benefit # 7. Art Chianello, Water Resources Manager, stated staff will provide a report regarding Zone of Benefit # 7 in the near future regarding what it means to the City of Bakersfield in terms of water supply, costs and other related issues. No action taken 5. REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Information Bakersfield, California, May 19, 2015 - Page 2 5. REPORTS continued A. John Ryan, Hydrographic Supervisor, reviewed the graph activity of the Kern River Natural flow, Regulated Flow, & Isabella Reservoir Storage. The current Kern River storage is 44,000 acre feet of total group storage. The Kern River Basin Snow Pack Accumulation Index reveals a small amount of snow received on April 10th, which has already melted. The State Department of Water Resources Snows Surveys B -120 report states the Kern River April -July runoff level is 45,000 acre feet. Information only, no action taken. B. Update on Water Usage in the City's Domestic Water Service Area Jason Meadors, Water Resources Director, gave a brief update and stated water usage for the domestic water service area reported to the state includes January through April 2015. The total reduction for January is 4.8 %, with the reduction per capita at 8.5 %; total reduction for February is 11.6 %, with the reduction per capita at] 3.7%; total reduction for March is 14,3 %, with the reduction per capita atl8.6 %; April had a total water produced increase of 0.8 %, with the reduction per capita at 4.8 %. These are not the numbers we are hoping for. The City now has to meet a 36% water reduction per the state regulations. The City continues to encourage water conservation, Information only, no action taken 6. NEW BUSINESS A. Amendment No. 1 to Agreement No. 12 -074, Kern River Interests Cost Sharing Agreement relating to United States Army Corps of Engineers Restrictions on Use of Isabella Reservoir Storage Space Art Chianello, Water Resources Manager, gave a brief update and stated the City's shared cost will be approximately $7,000 per year for a five year period. Motion by Maxwell to approve Amendment No. 1 to Agreement No. 12 -074 and refer to the full City Council for approval. APPROVED, ALL AYES 7. WATER BOARD STATEMENTS None Bakersfield, California, May 19, 2015 - Page 3 8. CLOSED SESSION A. Conference with Legal Counsel - Potential Litigation Closed session pursuant to Government Code section 54956.9(d)(2),(e)(1) (Two matters) Recess to Closed Session at 2:22 p.m, Closed Session was adjourned at 4:11 p.m. 9. CLOSED SESSION ACTION Virginia Gennaro, City Attorney, stated staff was given direction on Closed Session Item 8.A.; and there was no reportable action on Closed Session Item 8. B. 10. ADJOURNMENT Chairman Hanson adjourned the meeting at 4:12 p.m. Harold Hanson, Chairman City of Bakersfield Water Board Bobbie Zaragoza, CMC Secretary, City of Bakersfield Water Board o�BAKE �cospoa,r� Rs� ADMINISTRATIVE REPORT �9IF WATER BOARD MEETING DATE: June 10, 2015 AGENDA SECTION: Reports ITEM: 6. A. 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Z I I 1 sac _o LL d rn m C O O O O O O O O O O co Il- T O O O O O O CO LO %t GN003S dad 1334 oisno O O O O O O O Ch N T LO T Q ll�^ vJ LO T Q LO T M; c ca 2 LO T i C. Q LO T L ca 2 _LO N LL LO T c al T U W 0 Z T U BA p'Cs1 ADMINISTRATIVE REPORT 1 F, IFR WATER BOARD MEETING DATE: June 10, 2015 AGENDA SECTION: Reports ITEM: 6.B. TO: Harold Hanson, Chairman Bob Smith, Member Terry Maxwell, Member FROM: Art Chianello, Water Resources Manager DATE: June 4, 2015 APPROVED DEPARTMENT HEAD CC SUBJECT: Update on Water Usage in the City's Domestic Water Service Area for May 2015. RECOMMENDATION: For Board information. BACKGROUND: The emergency drought regulations implemented by the Governor require the City to report water usage to the State by the 15th of each month. The City began reporting monthly water usage for its domestic water service area in June 2014. The table below shows information that was reported to the State for the month of May 2015. Note that one (1) CCF is one hundred cubic feet, or 748 gallons. "R -CPCD" is the residential gallons per person per day water usage. May 2013 May 2015 Increase/ Decrease( - Total Water Produced (CCF) 1,712,635 1,290,630 - 24.6% Population 135,653 142,387 6,734 Residential Use Percentage 71.7% 72.7 R -GPCD 219 159 - 27.2% Total Residential Connections 38,876 40,806 1,930 O�BAKE NCDRPDRA)g �S� ADMINISTRATIVE REPORT IF BOARD MEETING DATE: June 10, 2015 AGENDA SECTION: Reports ITEM: 6. C. TO: FROM: DATE: SUBJECT Harold Hanson, Chairman Bob Smith, Member Terry Maxwell, Member Art Chianello, Water Resources Manager DEPARTMENT HEAD June 10, 2015 APPROVED lam" Response to Vice Mayor Hanson's Referral (ID: 588) regarding that staff notify the top water users of the need for them to reduce their water usage. RECOMMENDATION: Authorize staff to send the letter to the top 50 water users in the City of Bakersfield domestic service area. BACKGROUND: On April 22, 2015, the Bakersfield City Council adopted Emergency Ordinance No. 4804 to support the State's recent Emergency Drought Regulations. The State regulations require the City to reduce consumption and use of water by 36 percent from 2013 levels. As a result, the City must find ways to reduce the consumption and delivery of water to its customers and contractors. Vice Mayor Hanson requested staff identifies the top water users in the City and notify them of the need to reduce their water usage. Staff recommends that Water Board approve letter for distribution to the top water users. WATER RESOURCES DEPARTMENT Art R. Chianello, P.E.. Water Resources Manager Dear City of Bakersfield Water Customer, The purpose of this letter is to update you on the severity of the drought locally and to inform you that as one of Bakersfield's largest water user, we are asking you to help the City achieve a 361/o reduction in water use. As you are certainly aware, the State of California is in the fourth year of one of the most severe droughts in history. In his most recent Executive Order, the Governor of the State of California observed that, as a result of the drought, California's water supplies continue to be severely depleted, with record low snowpack in the Sierra Nevada Mountains, decreased water levels in most of California's reservoirs, reduced flows in the State's rivers and shrinking supplies in groundwater basins. The Governor declared a drought State of Emergency in January 2014 and issued a series of Executive Orders in April and September 2014, and January 2015, to attempt to address and alleviate the effects of the drought. With the lowest snowpack on record and no end in sight for the drought, on April 1, 2015, the Governor issued an additional Executive Order which directed the State Water Board to implement mandatory water reductions in urban areas to reduce water use by 25 percent statewide to safeguard the state's remaining urban water supplies, The City has implemented drought - related restrictions and taken other actions to address the extreme drought conditions. On June 25, 2014, City Council passed Resolution 106 -14, which called on all citizens to conserve water and all City Departments to take proactive steps to reduce City water use. The City thereafter implemented Stage Three of its emergency water shortage contingency plan from its Urban Water Management Plan. On April 22, 2015, the Bakersfield City Council adopted Emergency Ordinance No. 4804 to support the State's recent Emergency Drought Regulations, The State regulations require the City to reduce consumption and use of water by 36 percent from 2013 levels, As a result, the City must find ways to reduce the consumption and delivery of water to its customers and contractors. Water Resources Department • 1000 Buena Vista Road • Bakersfield • California 93311 (661) 326 -3715 • Fax (661) 852 -2127 • E -Mail: water @bakersfieldcity.us B A K E R S F I E L D WATER RESOURCES DEPARTMENT Art R. Chianello, P.E.. Water Resources Manager Dear City of Bakersfield Water Customer, The purpose of this letter is to update you on the severity of the drought locally and to inform you that as one of Bakersfield's largest water user, we are asking you to help the City achieve a 361/o reduction in water use. As you are certainly aware, the State of California is in the fourth year of one of the most severe droughts in history. In his most recent Executive Order, the Governor of the State of California observed that, as a result of the drought, California's water supplies continue to be severely depleted, with record low snowpack in the Sierra Nevada Mountains, decreased water levels in most of California's reservoirs, reduced flows in the State's rivers and shrinking supplies in groundwater basins. The Governor declared a drought State of Emergency in January 2014 and issued a series of Executive Orders in April and September 2014, and January 2015, to attempt to address and alleviate the effects of the drought. With the lowest snowpack on record and no end in sight for the drought, on April 1, 2015, the Governor issued an additional Executive Order which directed the State Water Board to implement mandatory water reductions in urban areas to reduce water use by 25 percent statewide to safeguard the state's remaining urban water supplies, The City has implemented drought - related restrictions and taken other actions to address the extreme drought conditions. On June 25, 2014, City Council passed Resolution 106 -14, which called on all citizens to conserve water and all City Departments to take proactive steps to reduce City water use. The City thereafter implemented Stage Three of its emergency water shortage contingency plan from its Urban Water Management Plan. On April 22, 2015, the Bakersfield City Council adopted Emergency Ordinance No. 4804 to support the State's recent Emergency Drought Regulations, The State regulations require the City to reduce consumption and use of water by 36 percent from 2013 levels, As a result, the City must find ways to reduce the consumption and delivery of water to its customers and contractors. Water Resources Department • 1000 Buena Vista Road • Bakersfield • California 93311 (661) 326 -3715 • Fax (661) 852 -2127 • E -Mail: water @bakersfieldcity.us Based on your annual water usage in 2014, you have been identified as one of the top fifty (50) water users within the City of Bakersfield's water service area. As a result of this, the City of Bakersfield's Water Resources Department is reaching out to you to let you know that your water conservation efforts can play a vital role in helping us meet our water conservation goals. Starting June 1, 2015 new State regulations will be in effect for the City of Bakersfield water system. The new regulation requires the City to reduce its total water consumption by thirty -six percent (36 %) as compared to the same month in 2013. For example, the water that the City provides in June 2015 must be 36% less than what was delivered in June 2013. This some rule will apply for July, August, and through the rest of this year and into 2016. Please use indoor and outdoor water efficiently. Being among the "top 50" water users you have a special opportunity to cut back your water usage and make a huge positive impact on the rest of our water system. Please don't hesitate to contact me if you would like to discuss any of this further. Sincerely, Art R. Chianello, P.E. Water Resources Manager City of Bakersfield W (661) 326 -3715 www. bakersfieldcity.us /cityservices /water Water Resources Department • 1000 Buena Vista Road • Bakersfield • California 93311 (661) 326 -3715 • Fax (661) 852 -2127 . E -Mail: water@ bakersfieldcity.us BA E tZj Ocouaart'QS ADMINISTRATIVE REPORT cAIFO WATER BOARD MEETING DATE; June 10, 2015 AGENDA SECTION; Reports ITEM; 6, D. TO; Harold Hanson, Chairman Bob Smith, Member Terry Maxwell, Member �A)PPROVED C1C FROM; Art Chianello, Water Resources Manager DEPARTMENT HEAD O- DATE; June 10, 2015 SUBJECT; Update on status of City water supplies from the Kern River RECOMMENDATION; For Board Information BACKGROUND: The City's entitlement of water on the Kern River will run out in approximately end of July when the City storage in Lake Isabella is exhausted. Notice has been given to parties who contract with the City for a portion of that water supply and efforts to identify alternative ways of supplying the properties in question will be cooperatively explored as a major priority. The Water Department is continuing to attempt to identify creative ways to minimize the impacts due to this condition. This report will give updates to the City's Kern River supply and efforts on alternative water supplies. Alan Tandy • City Manager June 4, 2015 Mr. David Couch, Chairman Kern County Board of Supervisors 1 1 15 Truxtun Avenue, 5th Floor Bakersfield, CA 93301 Re: Notice of Possible Interruption or Cessation of Delivery of Water to County of Kern Dear Chairman Couch: This letter is intended to give notice of a likely interruption or complete cessation of deliveries of water by the City of Bakersfield ( "City ") to the County of Kern ( "County ") pursuant to certain water supply agreements between the City and the County. The City has historically provided Kern River water to the County of Kern pursuant to various agreements, including the June 9, 1964 "Ming Lake Temporary Service Agreement," and the September 15, 1998 "Operational Agreement, Northeast Water Supply Project." Through those agreements the City has provided water to "replenish" water lost from Lake Ming by seepage, evaporation, and evapo- transpiration, for irrigation of Hart Park, and for use on County property under lease to the California Living Museum ( "CALM ") and the Kern County Soccer Foundation. As you are certainly aware, the State of California is in the fourth year of one of the most severe droughts in history. In his most recent Executive Order, the Governor of the State of California observed that, as a result of the drought, California's water supplies continue to be severely depleted, with record low snowpack in the Sierra Nevada Mountains, decreased water levels in most of California's reservoirs, reduced flows in the State's rivers, and shrinking supplies in groundwater basins. The Governor declared a drought State of Emergency in January 2014 and issued a series of Executive Orders in April and September 2014, and January 2015, to attempt to address and alleviate the effects of the drought. With the lowest snowpack on record and no end in sight for the drought, on April 1, 2015, the Governor issued an additional Executive Order which directed the State Water Board to implement mandatory water reductions in urban areas to reduce water use by 25 percent statewide to safeguard the state's remaining urban water supplies. The City has implemented drought - related restrictions and taken other actions to address the extreme drought conditions. On June 25, 2014, City Council passed Resolution 106 -14, which called on all citizens to conserve water and all City Departments to take proactive steps to reduce City water use. The City thereafter implemented Stage Three of its emergency water shortage contingency plan from its Urban Water Management Plan. City of Bakersfield • City Manager's Office • 1600 Truxtun Avenue Bakersfield • California • 93301 (661) 326 -3751 • Fax(661)324-1850 • B A K E R S F I E L D Alan Tandy • City Manager June 4, 2015 Mr. David Couch, Chairman Kern County Board of Supervisors 1 1 15 Truxtun Avenue, 5th Floor Bakersfield, CA 93301 Re: Notice of Possible Interruption or Cessation of Delivery of Water to County of Kern Dear Chairman Couch: This letter is intended to give notice of a likely interruption or complete cessation of deliveries of water by the City of Bakersfield ( "City ") to the County of Kern ( "County ") pursuant to certain water supply agreements between the City and the County. The City has historically provided Kern River water to the County of Kern pursuant to various agreements, including the June 9, 1964 "Ming Lake Temporary Service Agreement," and the September 15, 1998 "Operational Agreement, Northeast Water Supply Project." Through those agreements the City has provided water to "replenish" water lost from Lake Ming by seepage, evaporation, and evapo- transpiration, for irrigation of Hart Park, and for use on County property under lease to the California Living Museum ( "CALM ") and the Kern County Soccer Foundation. As you are certainly aware, the State of California is in the fourth year of one of the most severe droughts in history. In his most recent Executive Order, the Governor of the State of California observed that, as a result of the drought, California's water supplies continue to be severely depleted, with record low snowpack in the Sierra Nevada Mountains, decreased water levels in most of California's reservoirs, reduced flows in the State's rivers, and shrinking supplies in groundwater basins. The Governor declared a drought State of Emergency in January 2014 and issued a series of Executive Orders in April and September 2014, and January 2015, to attempt to address and alleviate the effects of the drought. With the lowest snowpack on record and no end in sight for the drought, on April 1, 2015, the Governor issued an additional Executive Order which directed the State Water Board to implement mandatory water reductions in urban areas to reduce water use by 25 percent statewide to safeguard the state's remaining urban water supplies. The City has implemented drought - related restrictions and taken other actions to address the extreme drought conditions. On June 25, 2014, City Council passed Resolution 106 -14, which called on all citizens to conserve water and all City Departments to take proactive steps to reduce City water use. The City thereafter implemented Stage Three of its emergency water shortage contingency plan from its Urban Water Management Plan. City of Bakersfield • City Manager's Office • 1600 Truxtun Avenue Bakersfield • California • 93301 (661) 326 -3751 • Fax(661)324-1850 Possible Interruption /Cessation of Water County of Kern June 4, 2015 Page 2 On April 22, 2015, the Bakersfield City Council adopted Emergency Ordinance No. 4804 to support the State's recent Emergency Drought Regulations. The State regulations require the City to reduce consumption and use of water by 36 percent from 2013 levels. As a result, the City must find ways to reduce the consumption and delivery of water to its customers and contractors. The droughi has also directly reduced the City's available Kern River water supply. The City depends on the Kern River for the vast majority of the water it provides residents and contractors. The City diverts water from the Kern River pursuant to a hierarchy of water rights in place since the issuance of the "Shaw Decree" in 1900. The City had a secondary priority on the Kern River, and when the flow of water in the River falls below 300 cubic feet per second (cfs), the City's rights do not yield or produce any water. Water has flowed in the Kern River in 2015 at only 10% of normal, expected flows. As a result, in recent weeks, daily Kern River flows have frequently fallen below 300 cfs. The City expects that those conditions, and the diminished flows, will continue throughout the summer months. The City therefore does not expect to have any available Kern River water to deliver to customers within the City, or to other entities pursuant to various water supply agreements. As a result of the drought, and the reduced flows of water in the Kern River, the City believes that it will not likely have any water to deliver to the County pursuant to the above described agreements for the remainder of 2015. The drought, and the impact of the drought on the City's water supply, will likely make it impossible, or impracticable, for the City to deliver any additional water to or on behalf of the County pursuant to the agreements. Through this letter the City puts the County on notice of the expected interruption or complete cessation of deliveries of water to the County pursuant to the referenced agreements. The County should take steps to prepare for the reduction, interruption or cessation of deliveries of water by the City. Among other things, the County should take steps to procure additional, alternate water supplies, and /or take action to reduce the demand for water in and in the vicinity of Hart Park. The City will provide an update on the City's ability to supply water pursuant to the referenced agreements in the near future. In the meantime, if the County has any questions with regard to these matters, or if the County wishes to further discuss these matters, please let us know. Sincerely J� Ra?*'Tandy City Manager City of Bakersfield Alan Tandy - City Manager June 4, 2015 John Yu, General Manager Rio Bravo Country Club 15200 Casa Club Drive Bakersfield, CA 93306 Re: Notice of Possible Interruption or Cessation of Delivery of Water to Rio Bravo Country Club Dear Mr. Yu: This letter is intended to give notice of a likely interruption or complete cessation of deliveries of water by the City of Bakersfield ( "City ") to the Rio Bravo Country Club ( "Rio Bravo "). The City has provided Kern River water to Rio Bravo pursuant to a June 30, 1999 "Detachment and Water Sale Agreement" between the City and the California Water Service Company and the Olcese Water District, Agreement No. 99 -150 ( "Agreement "). As you are certainly aware, the State of California is in the fourth year of one of the most severe droughts in history. In his most recent Executive Order, the Governor of the State of California observed that, as a result of the drought, California's water supplies continue to be severely depleted, with record low snowpack in the Sierra Nevada Mountains, decreased water levels in most of California's reservoirs, reduced flows in the State's rivers, and shrinking supplies in groundwater basins. The Governor declared a drought State of Emergency in January 2014 and issued a series of Executive Orders in April and September 2014, and January 2015, to attempt to address and alleviate the effects of the drought. With the lowest snowpack on record and no end in sight for the drought, on April 1, 2015, the Governor issued an additional Executive Order which directed the State Water Board to implement mandatory water reductions in urban areas to reduce water use by 25 percent statewide to safeguard the state's remaining urban water supplies. The City has implemented drought - related restrictions and taken other actions to address the extreme drought conditions. On June 25, 2014, City Council passed Resolution 106 -14, which called on all citizens to conserve water and all City Departments to take proactive steps to reduce City water use. The City thereafter implemented Stage Three of its emergency water shortage contingency plan from its Urban Water Management Plan. City of Bakersfield - City Manager's Office - 1600 Truxtun Avenue Bakersfield - California - 93301 (661) 326 -3751 - Fax (661) 324 -1850 • B A K E R S F I ""n-aft-ft E L D Alan Tandy - City Manager June 4, 2015 John Yu, General Manager Rio Bravo Country Club 15200 Casa Club Drive Bakersfield, CA 93306 Re: Notice of Possible Interruption or Cessation of Delivery of Water to Rio Bravo Country Club Dear Mr. Yu: This letter is intended to give notice of a likely interruption or complete cessation of deliveries of water by the City of Bakersfield ( "City ") to the Rio Bravo Country Club ( "Rio Bravo "). The City has provided Kern River water to Rio Bravo pursuant to a June 30, 1999 "Detachment and Water Sale Agreement" between the City and the California Water Service Company and the Olcese Water District, Agreement No. 99 -150 ( "Agreement "). As you are certainly aware, the State of California is in the fourth year of one of the most severe droughts in history. In his most recent Executive Order, the Governor of the State of California observed that, as a result of the drought, California's water supplies continue to be severely depleted, with record low snowpack in the Sierra Nevada Mountains, decreased water levels in most of California's reservoirs, reduced flows in the State's rivers, and shrinking supplies in groundwater basins. The Governor declared a drought State of Emergency in January 2014 and issued a series of Executive Orders in April and September 2014, and January 2015, to attempt to address and alleviate the effects of the drought. With the lowest snowpack on record and no end in sight for the drought, on April 1, 2015, the Governor issued an additional Executive Order which directed the State Water Board to implement mandatory water reductions in urban areas to reduce water use by 25 percent statewide to safeguard the state's remaining urban water supplies. The City has implemented drought - related restrictions and taken other actions to address the extreme drought conditions. On June 25, 2014, City Council passed Resolution 106 -14, which called on all citizens to conserve water and all City Departments to take proactive steps to reduce City water use. The City thereafter implemented Stage Three of its emergency water shortage contingency plan from its Urban Water Management Plan. City of Bakersfield - City Manager's Office - 1600 Truxtun Avenue Bakersfield - California - 93301 (661) 326 -3751 - Fax (661) 324 -1850 Possible Interruption /Cessation of Water Rio Bravo Country Club June 4, 2015 Page 2 On April 22, 2015, the Bakersfield City Council adopted Emergency Ordinance No. 4804 to support the State's recent Emergency Drought Regulations. The State regulations require the City to reduce consumption and use of water by 36 percent from 2013 levels. As a result, the City must find ways to reduce the consumption and delivery of water to its customers and contractors. The drought has also directly reduced the City's available Kern River water supply. The City depends on the Kern River for the vast majority of the water it provides residents and contractors. The City diverts water from the Kern River pursuant to a hierarchy of water rights in place since the issuance of the "Shaw Decree" in 1900. The City had a secondary priority on the Kern River, and when the flow of water in the River falls below 300 cubic feet per second (cfs), the City's rights do not yield or produce any water. Water has flowed in the Kern River in 2015 at only 10% of normal, expected flows. As a result, in recent weeks, daily Kern River flows have frequently fallen below 300 cfs. The City expects that those conditions, and the diminished flows, will continue throughout the summer months. The City therefore does not expect to have any available Kern River water to deliver to customers within the City, or to other entities pursuant to various water supply agreements. As a result of the drought, and the reduced flows of water in the Kern River, the City believes that it will not likely have any water to deliver to Rio Bravo pursuant to the Agreement for the remainder of 2015. The drought, and the impact of the drought on the City's water supply, will likely make it impossible, or impracticable, for the City to deliver any additional water to or on behalf of Rio Bravo pursuant to the Agreement. Through this letter the City puts Rio Bravo on notice of the expected interruption or complete cessation of deliveries of water to Rio Bravo pursuant to the Agreement. Rio Bravo should take steps to prepare for the reduction, interruption or cessation of deliveries of water by the City. Among other things, Rio Bravo should take steps to procure additional, alternate water supplies, and /or take action to reduce its demand for water. The City will provide an update on the City's ability to supply water pursuant to the referenced agreements in the near future. In the meantime, if Rio Bravo has any questions with regard to these matters, or if Rio Bravo wishes to further discuss these matters, please let us know. Sincer I y , Ian Tan y City Manager City of Bakersfield Enclosure BAKER ADMINISTRATIVE REPORT J rU WATER BOARD C' IF lyl MEETING DATE: June 10, 2015 AGENDA SECTION: New Business ITEM: 9.A. TO: FROM: DATE: SUBJECT: Harold Hanson, Chairman Bob Smith, Member Terry Maxwell, Member Art Chianello, Water Resources Manager June 4, 2015 APPROVED DEPARTMENT HEAD (� Presentation by David Beard, Kern County Water Agency, Improvement District 4, regarding Zone of Benefit No. 7 Tax RECOMMENDATION: For Board information. BACKGROUND: At previous Water Board meetings there has been some discussion about Kern County Water Agency (Agency) Improvement District No. 4's (ID4) Zone of Benefit No. 7 (ZOB7). ID4 Manager, Dave Beard will be at the Water Board meeting to give an overview of ZOB7 and to answer questions. ID4 was formed by a Resolution adopted by the Agency Board on December 21, 1971, to provide a supplemental water supply for portions of the metropolitan Bakersfield area through the importation of water from the State Water Project (SWP). In order to have a means for transporting this supplemental water to ID4 from the California Aqueduct, the ID4 Project included ID4's participation in the 21- mile -long Cross Valley Canal (CVC). Upon reaching ID4, the supplemental supply was to be delivered directly to recharge areas for direct replenishment of the underlying groundwater aquifer or to ID4's Henry C. Garnett water purification plant for eventual use by the water purveyors served by the ID4's plant. In order to pay for the capital and ongoing operational costs of ID4, a number of financing and funding mechanisms were established to provide for the collection of money associated with debt service and other financial obligations. One of the largest funding mechanisms for ID4 is ZOB7. The Agency is authorized to set zones of benefit as a means of collecting assessments from areas within Kern County that benefit from water supply contracts with either the United States or the State of California. Z0137 was created by the Agency to provide revenues for all costs associated with the importation of SWP Table A water dedicated to the ID4 area through the collection of an ad valorem assessment. Currently, the SWP is supposed to provide approximately 83,000 acre -feet (af) on an annual basis. However, as a result of the State's failure to complete the SWP and increasing regulatory limitations on the operations of the SWP, it is anticipated that the SWP will experience significant shortages and that the SWP will only be able to deliver approximately 60 percent of Table A water on an average annual basis. 0�BAKE Ncoxeax�r,�Rs .�, ADMINISTRATIVE REPORT IF BOARD For Fiscal Year 2014 -2015, the ad valorem tax assessment for Z0137 is $24.78 per $100,000 of assessed value. Assuming the median house value in Bakersfield is approximately $237,000, the typical assessment is $58.74. It should be noted that 75% of the assessed valuation within the Z0137 boundary is within the City limits, while 24% is within the County of Kern. Water Board, City of Bakersfield 1501 Truxtun Avenue Bakersfield, Ca 93301 Subject: Zone of Benefit Number Seven Mister Chairman, Board Members and Staff: Received at the Water Board Meeting � e- J: Ff 9. Zone of Benefit Number Seven is a property tax placed on the residents of urban Bakersfield in lieu of a contract with the Kern County Water Agency. Arguably, it pays more than its fair share of the County water costs and can be seen as an equity issue. I would skirt that issue as I see it as an impediment to water acquisition. It does aid those who do see water as a tool for other agendas, and I do not wish to go there at this time and see any attempt to justify the Zone as equitable as counterproductive to the main issue of a focus on water acquisition. This payment by Zone has lost the focus on acquisition and begot a dependency on seeking such external payments. It can even be argued that the same water is now being bought twice as it is purchased from an entity in the north of the State who puts it into the river where it goes to the State Project and is bought again, or it can be seen as being bought once and the State Project is paid for delivering it which amounts to the same thing. These infrastructure payments, even if for no current water supply, arises secondarily from this Zone dependency. The passing of costs to another entity reduces the need for oversight of the State's bureaucracy and process, as one interminable organization replaces another with the end goals appearing to be careers, not outcome or transfers. Never focused on are cost benefit ratios; this would include benefit to the State Project recipients in general let alone benefit to this specific Zone. Most importantly, any subsidy begets a false price with results that could be classically predicted. As the attached article from THE ECONOMIST, hardly known as a hotbed of radical thought, other strategies for water procurement are seen as economically not viable due to the false price. Note the contrast with the non - subsidized area of San Diego, which is proceeding apace to acquire an adequate supply. Sincerely, Dennis Fox 918 Blossom St. Bakersfield, CA 93306 (661) 366 4093 The Economist April 11th 2015 Drotaghtin California The price is wrong LOS ANGELES Why is the Golden State so bad at managing water? ALIFORNIA is no longer taking a laid- back approach to drought. On April ist, for the first time, the Golden State im- posed mandatory curbs on water use. Go- vernor Jerry Brown ordered 400 local wa- ter- supply agencies, which serve go% of residents, to deliver 25% less over the com- ing year. Communities that have already reduced water usage in recent years —such as Los Angeles County —will be less affect- ed than their splash -happy neighbours. Mr Brown put his foot on urban hose - pipes while letting farmers carry on merri- ly wasting water, for which they pay far less than urbanites. Agriculture sucks up about 80% of the state's water (excluding the half that is reserved for environmental uses). Farmers have guzzled ever more wa- ter as they have planted thirsty crops such as almonds, walnuts, and grapes. Mean- while, urban water use has held relatively steady over the past two decades, despite massive population growth, thanks to smart pricing and low-flow toilets. Per -cap- ita water use in California has declined from 232 gallons a day in 1990 to 178 gallons a day in 2010. Last year the governor called for all Cal- ifornians to cut their water use by another 20 %; residents fell short of that marls in ev- ery month except December. Mr Brown's plan imposes restrictions on golf courses and cemeteries. It also calls for the state to replace 5orn square feet (465 hectares) of lawns with drought- friendly planting. On April 5th Mr Brown defended his decision to go easy on farmers, saying that many of them are "really suffering ". Last year they let roughly lo'/. of the state's irrigated land go fallow because of the water shortage. Farmers who have already planted their crops cannot instantly switch, but resi- dents can take fewer showers. Critics are unmollifed. California can- not solve its water crisis without pricing the stuff properly and dealing with those +rho consume the most. For years, it was i he only state in the West that did not man- age how much groundwater landowners could extract from their private wells. Last year, finally, the governor signed a bill to re,nlate groundwater extraction. It will take decades to implement the hw,,, however. Communities are required to complete plans for sustainable water m;magement by 2020, but not to manage their water sustainably until 2040. Also, al- thou,h the water piped into urban bath - tuh!, is carefully metered, the state cannot April 1st 2014 I 0 A fli�0 4 Sacra enter San Francis Las Vegas ORNIA� Meo" ., `I Heoverdom 0 os.Angaes V r ARIZONA 00 km San Diego Drought intensity r�� �J Dry ',--I Moderate [] Severe :,] Extreme Exceptional Francisco t: J jae� 4 ..y Las Vegas Lake NIA ' iMead ?: Hooverdam Ahgeles ' All ARIZONA (� Source: OS ` O, Drought Monitor San Diego' yet monitor groundwater consumption in California. "You can't cut back what you can't measure —it's as simple as that," grumbles Andrew Fahlund of the Califor- nia Water Foundation, a green group. Other places have dealt with drought better than California. Israel, for example, has built large desalination plants that helped the country, which is 60% desert, cope with a seven -year drought between 2004 and 2010 and the driest winter on re- cord in 2013 -14. In California, desalination is harder because electricity is costly, thanks to a renewable-energy programme. And green rules make building anything slow. A company called Poseidon will this year complete a $1 billion desalination fa- cility to increase San Diego's water supply by 7 %, but only after six years of permitting and litigation. 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