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Home My WebLink About07/17/02~'CITY OF WATER BOARD Mark C. Salvaggio, Chair David Couch, Vice Chair Harold Hanson CITY OF BAKERSFIELD WATER BOARD MEETING WEDNESDAY, JULY 17, 2002 - 4:30pm Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 AGENDA 1). CALL MEETING TO ORDER 2). ROLL CALL 3). APPROVAL OF MAY 15, 2002 MEETING MINUTES 4). PUBLIC STATEMENTS 5). KERN RIVER LEVEE DISTRICT OPERATIONS REPORT 6). KERN RIVER OPERATIONS REPORT 7). OLD BUSINESS A. NORTHEAST BAKERSFIELD WATER SUPPLY PROJECT - For Board Information B. KERN RIVER FLOW RESTORATION PROJECT UPDATE - For Board Discussion C. UPDATE ON REQUEST TO KERN COUNTY WATER AGENCY FOR TREATED WATER TO SERVE NORTHWEST BAKERSFIELD - For Board Information D. DOMESTIC WATER SERVICE MAINLINE EXTENSION AGREEMENT REFUND REASSIGNMENTS - For Board Approval 8). NEW BUSINESS A. ELECTRICAL DEMAND RELIEF PROGRAM PARTICIPATION - For Board Review and Approval 1000 BUENA VISTA ROAD · BAKERSFIELD, CALIFORNIA 93311 · (661) 326-3715 WATER BOARD ' - JULY 17, 2002 - PAGE 2 - B. KERN DELTA WATER DISTRICT BANKING PROJECT EIR - For Board Review and Action C. AGREEMENT BETWEEN DUANE MORRIS LLP AND CITY FOR LEGAL SERVICES ASSOCIATED WITH KERN DELTA WATER DISTRICT EIR - For Board Review and Recommendation to City Council 9). WATER BOARD STATEMENTS 10). ADJOURNMENT Gene Boga~t' ~ - ~ Water Reslurces Mafager POSTED: July 12~ 2002 S:X2002WBMIN~WBAGJL 17 MINUTES OF THE REGULAR MEETING OF THE WATER BOARD - CITY OF BAKERSFIELD Held Wednesday, May 15, 2002, Water Resources Conference Room, 1000 Buena Vista Road, Bakersfield, California 93311. 1. The meeting was called to order by Board Chair Salvaggio at 4:32 p.m. 2. Present: Mark Salvaggio, Chair David Couch, Vice-Chair Harold Hanson 3. Boardmember Couch made a motion to approve the minutes of the Regular Water Board meeting held January 16, 2002. Motion carded. 4. There were no public statements 5. Mr. Core gave a brief report on the Kern River Levee District. With the abandonment of the Pioneer Canal eminent, construction of a water stop in the levee was completed. In addition, an outlet pipe from the river to the future lakes in Rio Vista Parks is in the process of being constructed through the levee. A similar water stop will be installed. No action required, for Board information. 6. An update on Kern River operations was given by Hydrographic Supervisor Steve Lafond. The current forecast for the Kern River is 200,000 acre-feet of April/July flow or 43% of normal. This season, March was the only month for normal rain. Lake Isabella peak storage is nearing, which should be on June 5th, at approximately 170,000 acre-feet. The reservoir will decrease to 65,000 to 70,000 acre-feet this fall. Memorial Day Parkway water should be turning into the river on Friday morning, May 24th, for a five day run. For Board information, no action required. 7. Old Business. 7A. An update on the Kern River Governor's Project was brought to the Board by Mr. Bogart. This project is a joint endeavor by the Kern County Water Agency's I.D. #4 and the City of Bakersfield to enhance flows in the Kern River Parkway during the peak recreational season. The goal is to have water in the channel as much as possible through the urban area. There are eight recovery wells that will assist in making this program work, but there will be costs involved to pump the wells in the dry years. To prepare for this, funding reserve will be needed to meet these expenses. Three hundred thousand ($300,000) annually will be earmarked in the City budget for the reserve in order to pay for these future energy costs to pump the wells with one-half will be charged to Agricultural Water and the other half to 1 Domestic Water. Councilmember Couch asked for a memo regarding this program and Councilmember Salvaggio asked for a memo to go to City Council as information. For Board information, no action required. --- 7B. Three Mainline Extension Contracts were reassigned. This will not change the obligation the City has to pay these contracts nor increase the City's cost, it simply changes the recipient of the refund. A motion to approve was made by Boardmember Salvaggio. Motion carded. 8. New Business. 8A. A presentation was made by Loron Hodge of the Kern County Farm Bureau to request a contribution to oppose listing of the Buena Vista Lake Shrew as an endangered species by the U. S. Fish and Wildlife Service. A lawsuit has been filed by the Kern County Farm Bureau against the U. S. Fish and Wildlife Service in this cause. After Mr. Hodge's presentation, there was a lengthy discussion, staffrecommended that the City not be enjoined in the lawsuit, but make a $5,000 contribution to assist the Kern County Farm Bureau in their lawsuit against the U. S. Fish and Wildlife Service. A motion was made by Councilmember Couch to approve staff's recommendation for a $5,000 contribution to this cause. Motion carried. 8B. Mr. Core gave an update on request to the Kern County Water Agency for treated drinking water to northwest Bakersfield. The KCWA treatment plant delivers treated water to Oildale and in northeast Bakersfield. The Northeast Bakersfield Water Supply Project that the City and Cal Water are putting together will replace water in northeast Bakersfield and make KCWA treated water available elsewhere. Cal Water and the City both need water in the northwest due to groundwater quality problems. The City along with KCWA are working to get a pipeline to the west from the treatment plant. The KCWA is applying for grant money to assist in this project. In order to move ahead on this project the Request for Proposals for engineering services is out for bid at this time. The project completion date is targeted for the summer of 2003. For Board information, no action required. 8C. The participation with Kern River Interests in a pilot program to falloW'Kern River South Fork land for riparian habitat and increased water entitlement was brought before the Board by Mr. Core. The Southwest Willow Flycatcher has a habitat designation in the South Fork Valley, most of it is within the reservoir line of the Isabella Lake. There has been an injunction filed by the Southwest Center for Biological Diversity to limit the storage at Isabella Lake at 330,000 acre-feet. A Memorandum of Understanding between the Kern River Interests and South Fork Landowners to conduct a pilot program during the balance of calendar year 2002 will ensure that 240 acres of South Fork land will not be irrigated by either water diverted from the South Fork of the Kern River or with groundwater. This will enable the Kern River Interests to determine if such fallowing will generate additional water for use by Kern River Interests and benefit the riparian habitat of the Kern River/South Fork area. Motion to approve made by Boardmember Hanson. Motion carried. 8D. Mr. Bogart gave a brief background on the final lease payment from Gary Garone Farms for Wastewater Plant #2 Municipal Farm. Mr. Garone has experienced serious health problems recently and as a result has ceased farming operations. Staff has received a letter from Mr. Wren, CPA, on behalf of Mr. Garone, asking for an adjustment in the computation of the rent for the year 2001. The letter requested a reduction in annual rent based on long-term improvements made to the farm in 2001 and the removal of 393 acres from the lease by the City. After review by staff, it was recommended that no adjustment be allowed for removal of acreage; but recommended a favorable consideration to a one-time offset for permanent improvements in the final lease payment for 2001. A motion was made by Boardmember Salvaggio to recommend approval of the adjusted final rent payment to the City Council. Motion carried. 8E. A request from the Kern County Superintendent of Schools for Northeast Bakersfield Water Supply Project mitigation was brought to the Board by Mr. Core. A Letter Agreement between the Kern County Superintendent of Schools and the City of Bakersfield regarding the temporary use of C.A.L.M. properties during construction of the Water Pumping Plant and Northeast Water supply Reservoir was discussed. The Kern County Superintendent of Schools had some proposed additions to the Letter Agreement which would involve the use of Prop 12 funds, the amount is not known at this time. Staff will be bringing this item back to a future Water Board meeting. A motion to approve was made by Boardmember Hanson. Motion carried, operational by then. 9. There were no Water Board Statements. 10. Adjourned to Closed Session at 5:57 p.m. Conference with legal counsel - existing litigation, closed session pursuant to government Code Section 54956.9(a) North Kern Water Storage District vs Kern Delta Water District, et al, Tulare County Superior Court Case No. 96-172919. The meeting reconvened at 6:17 p.m. 11. No action taken, update by legal counsel. 12. Boardmembers and staff toured the Kern River water facilities construction projects. Tour concluded at 8:25 p.m. upon return to the Water Resources Department. 13. The meeting adjourned at 8:25 p.m. Mark Salvaggio, Chair City of Bakersfield Water Board Sharon Robison, Secretary City of Bakersfield Water Board Agenda Item 5.) KERN RIVER LEVEE DISTRICT North side of Levee into Kem River Channel. Excavated area for pipeline connecting 32 acre park water theme with river channel. Installation of 36" pipeline "Slurrying in" 36" pipeline. Notice levee/temporary bike path top/left REG~XTT~X 2002 JULY 6TM Ports of Call - Beach Park to Yokuts Park - on the Kern River Ready! Set! Go! There! I built that one... S Join us for thl rsfield Bring a model boatave ,r be at Beby 5:00pm for our first*come-firs "Boat Buffe'e you can build your own boat ~e boats will be down the Kern River. be given to the winners. Sorry, no remote or b r then 36". Ports of ch: Departure - Arrival- Park ~ Park Food .' and .s: 5:30I), 6:30pm For more ~n Yokuts call CHY OF BAKERSFIELD Recreation _._ gcParlcs~.~ Free KERN RIVER NATURAL FLOW, REGULATED FLOW, & ISABELLA RESERVOIR STORAGE 2001 - 2002 WATER YEAR Isabella Storage ~00 ............................................................................................................................................................................................... '* Natural Flow 250,000 2000 .... ;~~.~ . ~. -200,000 1500- ~ ': ! /i ~ . -- :~o,ooo ~ . , ~ / ~ I ~ 2ooa-2oo2 2 a oo,oo0 500 ............................ ~~ ................ ~ ........................................... 2 50 000 ISABELLA RESERVOIR DALLY OPERATIONS REPORT (All readings are for date of report (TH U RSDAY) as of 0001, except as noted.., cfs in italics) Date of Report: July 11,2002 ISABELLA RESERVOIR 1 2558.92 Lake Elevation (ft.) 161177 Storage (AcFt) -1449 Change (AcFt) 406 Inflowto Isabella (cfs) 2 568075 Storage Capacity 28% %of Capacity 295080 Normal Storage 55% %of Normal Storage For this Date 3 5798 Average Lake Area (Acres) 9834 Inflow(Month) 20390 Outflow(Month) 4 355 North Fork Mean 359 North Fork @ 0600 Hours 326689 Accumulative Inflow(01-02 WY) 5 1034 Mean Outflow 523 Borel Canal 511 Main Dam Outlet 254016 Accum. Outflow(WY) 6 1015 Outflow @ 0600 521 Borel Canal @ 0600 Hours 494 Main Dam Outlet @ 0600 Hours Hours 7 103 Lake Evap. (cfs) 0.55 Inches Evap. for 24 Hours 2001 Lake Evap. (Month to Date) 8 0 Spillway Discharge for 24 Hours PRECIPITATION AND TEMPERATURE 9 0.00 Inches of Precipitation at Isabella for 24 Hours 0.00 Inches of Precipitation at Isabella for Month 10 8.16 Seasonal Precip. Isabella 9.71 Normal for 84% Isabella Precip. (Season: Oct 1 through Sep 30) this Date % of Normal 1 0.00 Inches of Precipitation at Pascoe for 24 Hours 0.00 Inches of Precipitation at Pascoe for Month 2 30.70 Seasonal Precip. Pascoe 34.64 Normal for 89% Pascoe Precip. this Date % of Normal 3 0.0 Upper Tyndall Creek 0.0 Pascoe 0.0 Wet Meadow 4 108 Isabella Maximum Temperature 0.00 Isabella Maximum Precipitation on Record For this Date (inches) 15 71 Isabella Minimum Temperature 77 24 Hour Wind Movement (Miles) NATURAL RIVER FLOW 16 417 Natural FIow(cfs) 10023 Natural FIow (Month to Date) 202361 2002 April-July Runoff 17 1358 Mean Flow 31% Natural Flow 877 Median Flow 48% Natural Flow For this Date in % of Mean For this Date in % of Median 18 7176 Max. on Record 146 Min. on Record 331873 Accum. Natural Flow (Water Year) For this Date For this Date 19 1018 First Point Flow 15875 First Point (Month to Date) 253144 Accum. First Point (Water Year) KERN RIVER FACTS & FIGURES: ~ · Upper Tynda// Creek snow sensor, situated at 11,400feet in the Kern Basin, maintains water B ^ K E R S F ~ E ~ content readings well into the summer months. As a general rule of thumb, once the reading falls below 10.0" of water, further peak flows on the North Fork are unlikely. On this date in Produced by City of Bakersfield 1983, Upper Tyndall held 16. 7" of water, eventually zeroing out on July 28, 1983. By comparison, Water Resources zero readings were first reported on May 9, 1977 (20% April-July), May 23, 1990 (24% A-J), (661) 326-3715 June 24, 1986 (189% A-J), June 17, 1997 (125% A-J) and May 29, 2002 (46% A-J (estimate). MEMORANDUM (White paper due to photographs) ~ July 9, 2002 TO: Gene Bogart, Water Resources Manager FROM: Flora Core, Water Resources Director SUBJECT: Northeast Bakersfield Water Supply Project - Construction Progress The Northeast Bakersfield Water Supply Project is to bring high quality Kern River drinking water to the citizens of northeast and central Bakersfield, as well as provide the catalyst for orderly development of the dry foothills on the eastside. The project began with the City constructing a Kern River mm-out structure, located below the California Living Museum. The entire project, a public-private cooperation between California Water Service Co. and the City, will include a river pumping station, two adjoining reservoirs, the purification/filtration plant and distribution pipelines to and from the purification plant. The Cal Water/City Kern River pumping plant, the City reservoirs, the Cal Water Treatment Plant and the Cal Water pipelines are under construction at this time. t~- ~.~.:,~ · ~ Construction of the two reservoirs began ·~ ,~ ~..~ ~r in earnest on December 15, 2001. This construction is funded through City Water Resources. Over 80,000 cubic yards of compacted earth and rock embankment were excavated, sorted and placed to create two reservoirs with storage capacity of 50 acre-feet each. The next phase of the reservoirs construction is the .: ~ ~..._~_,....placement of 520,000 square feet of ~'=' .... geomembrane liner to seal the reservoirs from leakage. The liner is expected to be Completed earthwork phase of the reservoirs in by this November. CALM is to the right and the Kern Soccer Park to the left. The Kern River Pumping Plant is approximately 50% [ complete. Started inNovember 2001, with California Water Service as lead on the contract, the City portion of the plant is less than 20% of the cost. This phase of the pump plant is to have 3,000 horsepower of electric pumping capacity to pull water from the river and lift the water over 250 vertical feet to the filtration plant. Smaller pumps will be installed near the end of the construction for City pumping capacity to maintain water levels in the adjacent reservoirs as a stand-by supply for the filtration plant, and for water flows to Hart Park and the Kern Soccer Park. The plant is scheduled to be completed in October 2002, with a testing period to follow. Kern River Intake Pumping Plant located directly west of CALM. The underground piping has been installed. Next segment is constructing block house and installing pumps and motors Page - 2 - Northeast Bakersfield Water Supply Project The Cal Water Bakersfield Treatment Plant is approximately 20% complete. This $30 million component of the Northeast Bakersfield Water Supply Project is the centerpiece of the system to which the other parts of the project will connect. The plant is located approximately 1 ]/2 miles north of Mesa Marin Raceway, just west of Valley Lane. The state-of-the-art microfiltration.process being employed at theplant is one Bakersfield Treatment Plant "Finished Water" Storage Tank Treatment Plant earthwork and underground r)il~in~ l>hase of the highest levels of treatment available. The initial 20 Million Gallons per Day (MGD) of purified Kern River Rendering of Treatment Plant Buildings drinking water will flow from the plant to City residents beginning in May 2003, after a start-up and shake down period in April 2003. The plant is easily expandable and current plans call for increase to 40 MGD by the year 2012 and 60 MGD by 2017. Cai Water has started the installation of 34,500 feet of distribution water pipelines, that range in size from 12" to 54" in diameter. The pipes will be installed along routes that will distribute purified water from the treatment plant to the existing Cai Water service areas. The major transmission pipes will be placed in and along Alfred Harrell Highway, Paladino Drive, Morning Drive, Panorama Drive, Fairfax Road and Auburn Avenue over the next nine months. In addition, 4,500 feet of sanitary sewer pipe is going in to service the treatment plant into the City's wastewater system. I 18" diameter pipeline being installed along Alfred Harrell Highway BELLEVUE CEREMONY JULY 3. 2002 I Water Board Chairman Mark Salvaggio speaking Spectators gathered for the Bellevue Ceremony Ribbon Cutting Let's Roll! Right behind you Believe Weir MEMORANDUM June 20,2002 TO: Alan Tandy, City Manager ~ ~0 FROM: Gene Bogart, Water Resources Ma?ger SUBJECT: KERN RIVER FLOW RESTORATION PROJECT BACKGROUND: On May 15th the City Water Board began reviewing historical information relating to the Kern River Flow Restoration Project. Staffwas requested to summarize the data in memo form and forward to the full City Council for their information. To provide background, the attached "Turning Back the Clock on the Kern River... "gives a brief overview of how the Kern River has been operated historically through urban Bakersfield. As you can see from the summary, several major turning points occurred during the last 130 years of operation of the Kern River. It all began with the digging and construction of the irrigation canals in the 1860's and 1870's to allow water to be diverted from the Kern River. These canals were later enlarged and expanded in length to eventually serve over 300,000 acres of farmland surrounding the original Bakersfield townsite. Then, following the Federal Flood Control Act of 1944, construction began on Isabella Dam on May 29, 1948 and water was stored in the reservoir for the first time in April, 1953. Also attached is a summary of historical "Kern River Runoff 1894 through 2001" which has been arranged in the order of magnitude. This chart begins with the driest year (1961) at the top left column and ends with the wettest year of record (1969) located at the bottom right column. As you can see in the historical record, approximately one-half of the time the river supply is greater than 75% of normal - and the rest of the time the river will yield less than 75% of normal supply. This was very important in establishing the GOALS of the restoration program. June 20, 2002 Subject: Kem River Flow Restoration Project GOALS OF THE PROGRAM: Following almost three years of public hearings and community input, the Kern River General Plan Element (July 1985) and the Kern River Parkway Project (November 1988) were adopted to establish local priorities for the Kern River. A major goal resulting from both the Kern River Plan Element and the Kern River Parkway Project was to "establish a minimum annual flow of water within the Kern River between Manor Street and Stockdale Highway crossing..." This goal applies primarily to the late spring and summer recreation season when most people would be using and enjoying the benefits of the Kern River Parkway. In order to meet this priority, certain assumptions were used to match the available Kern River supply each year with local irrigation demands and canal capacities. From this, the following flow criteria was established: KERN RIVER SUPPLY PARKWAY FLOW MONTHS Above 150% of Normal February through November Above 75% of Normal May through September Below 75% of Normal June through August On November 17, 1999, the City of Bakersfield and Kem County Water Agency entered into the "Kern River Parkway Water Management Agreement." By exchanging water and changing the timing of water deliveries, high quality Kern River used for groundwater recharge was shifted from the winter to summer months to coincide with peak irrigation demands and recreation use in the Parkway. With this agreement in place, the Kern River Parkway can presently meet its goal to provide flow during the recreation season in all years when the Kern River and State water project yields 75% of normal or above. As you can see from the attached historical runoff chart, this will occur two out of four years, or one-half the time. In years below 75% of normal, pumping of the "Kern River Flow Restoration Project" wells constructed under Proposition 13 will be needed to supplement the flow program. How much and/or how often these wells will operate in years below 75% of normal is based on several variables: · It requires a minimum flow of 120 cfs to wet the river channel from Chester Avenue to Coffee Road weir. This will provide flow passing Beach Park, Highway 99, Yokuts Park and Truxtun Lake. · This minimum flow rate will also create a diversion pond at Coffee Road weir so that water can be diverted into the River Canal for delivery to irrigation canals during summer season. 2 June 20, 2002 Subject: Kern River Flow Restoration Project · By piggy-backing the irrigation water on top of base flow of 120 cfs, a major portion of the Carder Canal flow can then be put into the river channel near Chester Avenue bridge for delivery downstream to the Coffee Road pond and River Canal diversion point. · The restoration wells produce approximately 60 cfs, or one-half of the needed base flow to reach the Coffee Road pond, so the wells must run two days to supply each day of flow down the river. · Therefore, depending upon the available water supply each year, a three month flow restoration program (June, July, August) will require between three and six months pumping to provide the needed exchange water in dry years. REQUIRED PUMPING and COST: Using the above flow requirements, in years between 50% and 75% of normal, it will require a three month pumping program to supplement'available surface water. In years below 50% of normal, it will require a six month pumping program (March-August) to meet the summertime flow restoration goal. Based on current energy costs, it will cost approximately $3,400 per day to produce the required 60 cfs daily flow. Seasonally, this means approximately $102,000 per month of operation. FLOW RESTORATION ENERGY BUDGET: If it is decided to provide restoration flows in the Kern River Parkway during all years, the required energy cost could be blended with normal years and budgeted as follows: Water Required Annual Year Occurrence Pumpin~ Cost Above 75% 2 in 4 years No pumping $ 0 50% to 75% 1 in 4 years 3 months $306,000 20% to 50% 1 in 4 years 6 months $612,000 As you can see from the above table, it will require approximately nine months pumping ($918,000) over four years to provide funding for an ongoing program to cover wet, normal and dry years on the Kern River. June 20, 2002 Subject: Kem River Flow Restoration Project Should we move forward with the full "flow restoration" program, it could be funded over a three to six year period (allowing for dry years) at the rate of $300,000 annually to provide a maximum build- up for the flow restoration energy fund to $900,000. This electricity cost might be shared between the Agricultural and Domestic Water division budgets. Agricultural Water would benefit through greater exchange opportunities and making direct use of the river channel for water deliveries. Domestic Water would benefit from improved groundwater quality. Kern River water normally flowing in canals would be replaced in drier years with well water, thus allowing high quality Kern River water to be diverted and recharged into the Kern River Parkway during the peak recreation season. SUMMARY: This draft concept to provide an ongoing flow restoration program during the recreation season in the Kern River Parkway will be further evaluated and discussed at our next regularly scheduled Water Board meeting on July 17, 2002. GB:sr Attachment S:\2002ME MOS\KRFIowRest ProjCCln fo 4 KERN RIVER FLOW RESTORATION PROGRAM "Turning Back the Clock on Kern River ..... " Long before Bakersfield became a town site, the Kern River flowed naturally from its origin in the southern Sierra Nevada mountains to its eventual destination, the Tulare Lake bed. The Kern River, southern-most of the great streams that flow westward from the crest of the mighty Sierra's, also has the most variable flow of all rivers in California. Even long ago, dry Sierra winters would leave the snow pack sparse, and Kern River flow that normally reached to the west side of the valley floor would dry up by ....... 7 - ] early summer. As canals were dug in the 1860's I and 70's, water was being appropriated from the Kern River and flow through what is now Bakersfield became less and less frequent. Farmers began to utilize the waters of the Kern River to South Fork Kern River near Onyx irrigate their lands both north and south of the river bed. After the completion of Lake Isabella in April 1954, water flowing through Bakersfield became almost non-existent due to the fact Kern River water could now be stored behind Lake Isabella Isabella Dam rather than left to flow down the river. Beginning in 1977, shortly after the City acquired water rights to the Kern River, this began to change. A strong desire and goal of the Bakersfield City Council was to see more flow in the Kern River more often. But turning back the clock - allowing the Kern River to flow as it did a hundred years ago - would not come easy. The existing Kern River water rights are over 130 years old. Districts that administer these historic water rights are extremely competitive. Water is sold, traded or bartered at some of the highest dollar costs that can be found anywhere in the arid West. River water is extremely scarce to our area, and on average, only one year in ten has a deep enough snow pack to allow for the Kern River to flow bank to bank throughout the year. Two-thirds of all years on the Kern are below normal, which doesn't leave much to flow downstream. Faced with these many obstacles, the City gradually began to change the course of Kern River. When the City assumed the obligation of Kern River operation in 1977, waters that flow in the river were governed by the Miller-Haggin Agreement of 1888, a century old document that spoke for all Kern River water. Under this agreement, water was typically present in the Kern River bed only in those years when water supply was above 70 percent of normal. Working within all existing contracts on Kern River, the City developed a unique arrangement with Improvement District Kern River near Bakersfield Heart Hospital No.4 (ID4) of the Kern County Water Agency to provide for flows in the Kern River in those lean years between 50 and 70 percent of normal. (Note: ID4 was formed for metropolitan Bakersfield during the 1960's to bring state water to Bakersfield from the California Aqueduct to help offset shrinking groundwater supplies). Ironing out this water supply agreement with ID4 was a long and arduous process for the City due to the complicated water contracts involved. The agreement, popularly referred to as "Kern River Parkway Agreement", was finalized in 1999 and became a major step towards meeting the City Council's goal by committing water to flow down the river during the May-September recreation Shoreline of Yokuts Park season of most years. But more was needed to insure water would flow in the river during the "dry" water years. Following the passage of the Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Act (Proposition 13) by California voters in March of 2000, the City teamed with the Kern County Water Agency, the local agency responsible for the administration of State Project water in Kern County, to secure grant funding for the Kern River Flow Restoration Program. The heart of the program was the construction of eight water wells that will be used primarily in years of 50 percent or lower water supply conditions to enhance recreation flows in the Kern River through Bakersfield. In reality, well water produced by the eight wells probably won't flow directly into the river bed. Rather, the well water will be delivered into canals and Kern River water flowing in these same canals will instead flow into the river bed. The Kern River Parkway Agreement, supplemented by the new Kern River Flow Restoration Program, will allow the highest quality Kern River water to percolate into our underground drinking water supply while at the same time providing much- anticipated recreation season flow for the entire community to enjoy. 1-11-02 = FLoW ALL'(EA , -'- 3 moxrrn mWR -75 o =/ AY '2 om' oF KERN RIVER 10151'01= 1894 thru 2001 APRIL-JULY RUNOFF 108 YEARS of RECORD 1,000 AcFt ) (in Order of Magnitude) NUMBER % NUMBER % OF OF OF OF YEARS YEAR Q NORMAL YEARS YEAR Q NORMAL I 1961 87.4 19% 55 1954 354.1 75% 2 1924 92.6 20% 56 1905 366.4 78% 3 1977 95.6 20% 57 1896 372.9 79% 4 1931 98.1 21% 58 1975 386.2 82% 5 1976 108.8 23% 59 1902 389.6 83% 6 1990 113.3 24% 60 1946 390.7 83% 7 1934 116.1 25% 61 1903 399.0 85% 8 1972 127.7 27% 62 1944 405.4 86% 9 1959 130.6 28% 63 1979 419.9 89% 10 1898 135.3 29% 64 1984 423.1 90% 11 1988 162.0 34% 65 1985 424.3 90% 13 1992 179.2 38% 67 1915 455.2 97% 14 1964 182.9 39% 68 1965 456.7 97% 15 1994 191.0 41% 69 1963 476.6 101% 16 1928 193.7 41% 70 1940 510.6 109% 17 1900 196.9 42% 71 1962 515.5 110% 18 1949 209.9 45% 72 1927 521.7 111% 19 1987 211.4 45% 73 1942 522.9 111% 21 1899 213.7 45% 75 1932 526.4 22 1929 219.5 47% 76 1974 535.2 114% 23 1966 219.9 47% 77 1917 560.3 119% 24 . 1955 224.8 48% 78 1997 571.5 122% 25 1930 232.6 49% 79 1936 581.6 124% 26 1926 232.8 50% 80 1901 582.0 27 1989 234.4 50% 81 1993 584.7 124% 28 1946 240.0 51% 82 1945 597.4 127% 29 1971 244.5 52% 83 1996 599.3 127% 30 1968 248.3 53% 84 1922 617.7 131% 31 '1947 249.6 53% 85 '1897 654.3 '139% 32 2001 250.3 53% 86 1907 678.7 144% 33 1912 251.8 54% 87 1914 685.0 146% 34 1999 252.6 54% 88 1895 694.7 1 46% 35 1981 252.7 54% 89 1943 697.2 146% 36 1908 260.9 55% 90 1911 701.2 149% 37 1951 261.9 56% 91 1973 723.8 154% 38 1939 268.3 57% 92 1982 796.8 169% 39 1991 276.5 59% 93 t958 831.7 177% 40 1957 292.3 62% 94 1937 852.0 181% 41 1894 295.4 63% 95 1986 886.7 189% 42 1933 299.6 64% 96 1967 924.0 196% 43 1950 299.9 64% 97 1995 929.2 198% 44 2000 306.5 65% 98 1938 961.8 205% 45 1925 313.1 67% 99 1980 991.0 211% 46 1904 316.6 67% 100 1941 995.7 212% 47 1970 319.4 68% 101 1978 1,094.4 233% 48 1921 321.3 68 % t 02 1952 1 ,'119.8 238% 49 1953 329.0 70% 103 1998 1,137.4 242% 50 1923 332.5 71% 104 t909 1,219.0 259% 51 1918 334.8 71% 105 1906 t,391.6 296% 52 1919 343.0 73% 106 1983 1,545.8 329% 53 t935 350.6 75% 107 1916 t,571.6 334% 54 t9t0 352.1 75% t08 1969 t,747.9 372% 10/25~01 CITY OF BAKERSFIELD WATER BOARD REPORT NO. 2-01 DECEMBER 12, 2001 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: STATEMENT OF WATER RESOURCES POLICY During the 2001-02 budget hearings it was suggested by councilmember David Couch that the Water Board should review alternative uses of funding when the 1976 Water Bond debt is paid off in December 2006. The issue was brought before the Water Board on July 11,2001 and staffwas directed to prepare an additional statement to the Water Resources Policy to address this issue. Upon review of the original water resources policies adopted on November 4, 1992, the Water Board found the policies to be as relevant today as they were 10 years ago when originally adopted. Permanent water shortages are becoming more common place since no new projects are currently being completed on the State Water Project. Water consumers are paying higher costs while statewide water supplies are becoming less firm. With the continued climate of uncertainty surrounding the future of state and federal water supply projects, our #1 priority continues to be protection of our locally controlled Kern River water rights and facilities. The Kern River remains our most unique and reliable community water resource. Kern River water is of excellent quality, is available by gravity flow and is not interruptible by power outages. The City's Kern River water rights, the Kern River Parkway and floodplain properties, the "2800 WATER BOARD REPORT NO. 2 - 01 December 12, 2001 Page - 2 - Acre" groundwater project and the water storage rights in Lake Isabella all contribute to this tremendous local resource. With the addition of Policy Statement #14, the City will be able to provide the financial resources necessary to preserve and administer the adopted water policies. To help us ensure for the long-range protection of these water resources, the Water Board requests that the City Council accept this report and re-affirm the City's water policies by amending the attached "STATEMENT OF WATER RESOURCES POLICY." Respectively submitted, COUNCi~MBER MARK SALV~GIO, CHAIR COUN~ILMEMBER ~'~ROUE~ANSON 12/12/0t 2001ADM IN RPTS\W B2-0 I. RPT 11/04/92 amended 12/12/01 CITY OF BAKERSFIELD STATEMENT OF WATER RESOURCES POLICY The City of Bakersfield is located in a semi-arid desert region that relies on its water supply from the underlying groundwater basin, the Kern River, and imported sources. The underlying groundwater basin is, and for many years has been, in a state of severe overdraft. Therefore, the City of Bakersfield is vitally interested in preserving the quantity and quality of its Kern River water supplies and water rights as well as all of the water resources of the Kern County portion of the San Joaquin Valley. The City owns extensive pre-1914 appropriative water rights which have priority dates among the earliest on the Kern River. The Kern River was declared fully appropriated on a year round basis on October 29, 1964 in Decision D 1196 by the California State Water Resources Control Board, which decision was reaffirmed by the State Board in its Order WR 89-15 dated November 16, 1989, and reaffirmed again by State Board Order WR 91-07 dated August 22, 1991 .' The City has also acquired appropriative rights to percolating groundwater through extraction of such water and applying it to beneficial uses. The City owns substantial conservation storage rights in Lake Isabella through a contract with the United States of America. The City also owns most of the bed and flood plain of the Kern River through the City and downstream to Interstate Highway 5. It also owns land adjacent to the river comprising some 2800 acres where it has formally developed groundwater spreading and recovery facilities. With this in mind, the City of Bakersfield hereby enumerates its basic policy designed to preserve, protect and promote the efficient use of its water resources. Following is a summary of the City's stated policies: I. CitY owned Kern River water shall not be utilized outside the boundaries of the San Joaquin Valley Portion of Kern County. 2. City water which returns by deep percolation to the underlying groundwater basin through the delivery for, and beneficial uses by, the City and/or its customers or contractors shall remain the property of the City and subject to recapture by the City. 3. When irrigated lands now being served by Kern River water become urbanized, the water rights related to these lands shall be protected to insure that such water will continue to be available to satisfy the water requirements of said lands. 4. Consistent with existing City "User Pay" policies, costs for water service shall be paid by revenues derived from those who benefit from the water service. 5. The City is concerned with potential contamination of its water supplies and will continue monitoring activities to prevent degradation of its water supply sources. Water quality for domestic and agricultural uses shall be maintained to meet all federal, state and local standards. 2 6. The City will continue to preserve its water resources to provide for the future orderly growth of the City, and those benefits derived from the water rights and water properties acquired by the City from Tenneco-West, Inc. on December 22, 1976 shall remain dedicated to the residents and taxpayers within the incorporated boundaries of the City of Bakersfield. 7. The City shall continue to encourage conservation, recycling and reclamation of all water resources to make it available for beneficial uses in a safe and efficient manner. 8. The City of Bakersfield supports groundwater management including conjunctive use of surface water and groundwater under local programs that enhance and benefit the Kern County portion of the San Joaquin Valley Groundwater Basin. 9. The City shall continue its policy to acquire river flood plain properties deemed essential to carry out and implement the goals of the Kern River Plan; including the City's adopted Kern River Channel Maintenance Program and the Kern River Parkway Plan. I0. The City will participate with other Kern River interests in the protection, enhancement and efficient management of all Kern River water. 11. All records of Kern River water supplies, including Watermaster records and all spreading and extraction of water, shall continue to be maintained by the City's Water Resources Department. 12. Pursuant to the Kern River Plan, it is the policy of the City to establish a minimum annual flow of water in the Kern River channel between Manor Street and Stockdale Highway Bridge as soon as possible. 13. The City Manager, City Attorney, City Water Consultant and the Water Resources Manager shall be responsible for monitoring all water related activities concerning the City of Bakersfield and shall report any deviations from the above stated policies to the City Water Board for remedial action. 14. In order to preserve and provide the resources necessary to administer the above policies, all revenues received from the operation of the water enterprise, including water sales, water banking, miscellaneous sales and/or cost savings resulting from a reduction in debt service shall continue to be used only for the purposes outlined in the above-stated Water Resources Policies. 4 .-' I " / ./ / / / ,' / / .' / . '1 ,-' iz' .' ' I / : / ," I .i ,.' LEGEND ....... / i M p RI~ V~l~l~C~l~NO. 4 .... ~"° ~' I EXHIBIT A ~ ~ PROPOSED NW FEEDER PIPEUNE '~ EXlSTIN O N ONAGEN CY O~,'VNED WELJ.~ ~. VAUGHN WATER COMPANY TURNOIJT . ~,~= ~ m,~ ~..u.~..... ~ ~......~ ~ ~ ~ MAINLINE EXTENSION REFUND ASSIGNMENT CITY OF BAKERSFIELD WATER RESOURCES DEPARTMENT - DOMESTIC WATER The undersigned hereby assigns to Lloyd E.. Rigler Revocable Trust dated May 2, 2002 P. O. Box 828 Burbank, CA 91503-0828 all of its right, title and interest in and to the following described Water Extension Agreement: With: CITY OF BAKERSFIELD Dated: January 15, 1979 Completion date: For: Water facilities - Parcel Map No. 2162 - Contract No. 80-10 W.B. Amount of deposit: $14,672.83 Balance of deposit: $532.28 Number of services: Number of hydrants: Refund basis: The exclusive right to receive from the City of Bakersfield 22 percent of the revenues derived therefrom in compliance with Section B(2) of the Main Extension Rule, which is within the general provisions and definitions of said rules. · The undersigned warrants that it is the owner(s) of said agreement free and clear of all claims, liens or encumbrances, and agrees to defend and hold the assignee harmless of and from all costs or claims arising out of any violation of this provision. Accepted: LLOYD E. RIGLER City of Bakersfield Florn Core, Water Resources Director Dated: ~ '~ t c~(-~c~ Dated: MAINLINE EXTENSION REFUND ASSIGNMENT CITY OF BAKERSFIELD WATER RESOURCES DEPARTMENT - DOMESTIC WATER The undersigned hereby assigns to Lloyd E. Rigler Revocable Trust dated May 2, 2002 P. O. Box 828 Burbank, CA 91503-0828 all of its right, title and interest in and to the following described Water Extension Agreement: With: CITY OF BAKERSFIELD Dated: December 14, 1983 Completion date: For: Water facilities - Tract No. 4561 - Contract No. 83-46 W.B. Amount of deposit: $61,528.81 Balance of deposit:, $33,840.85 Number of services:. Number of hydrants: Refund basis: The exclusive right to receive from the City of Bakersfield, on an annual basis, 272 percent of the deposit to install facilities in compliance with Section C(2) of the Main Extension Rule, which is within the General provisions and definitions of said rules. The undersigned warrants that it is the owner(s) of said agreement free and clear of all claims, liens or encumbrances, and agrees to defend and hold the assignee harmless of and from all costk or claims arising out of any violation of this provision. Accepted: LLOYD E. RIGLER City of Bakersfield Flora Core, Water Resources Director Dated: [~ r. ta,~ '7~ ~145d) [~" Dated: ffi'~ 5~~'~ "Monthly Capacity Payment" means S/MW/Month July 1, 2002 through May 17, 2007 pursuant to Schedule 1. "Monthly Energy Payment" means $/MWh July 1, 2003 through May 17, 2007. "Non-Performance Payment Offset" means the capacity payment will be offset based on performance. (See Article 5.2) "Party" means either ASC or the Client and Parties means ASC and the Client. "Peak Hour" means an hour within Peak Hours. "Peak Hours" means each of the hours from 11:00 a.m. to 7:00 p.m. on any given Business Day during the Peak Period. "Peak Period" means the period from July 1 to September 30. "Project Initiation Period" means the period from July 1, 2002 through September 30, 2002. "Requested KW" means the KW of Committed Capacity ASC requests the Client to Deliver pursuant to a Dispatch Notice. "Requested Operation Period(s)" means the consecutive Peak Hours specified in a Dispatch Notice during which ASC requests Delivery of Committed Capacity from the Client. A Requested Operation Period(s) shall commence with the Peak Hour specified by ASC in the Dispatch Notice and shall have a duration as so specified. "Summer Month" means July, August and September. "Testing" ASC shall have the right to conduct random tests of this capacity no fewer than six (6) times per year. ARTICLE 2: TERM AND TERMINATION 2.1 Term. This Agreement shall become effective as of the date it is executed by the Parties and shall continue in full force and effect until terminated in accordance with the provisions of Section 2.2 of this Agreement or May 17, 2007, whichever is earlier. 2.2 Termination. This Agreement may be terminated: July 1st, 2002 Demand Relief Program Agreement.doc 3 (a) By ASC in the event of default by the Client. (b) By the Client in the event of default by ASC. (c) By ASC in the event of CPA cancellation. (d) The CPA has the right to terminate the agreement between the CPA and ASC if ASC fails to pay Client in accordance with the terms of the ASC agreement between ASC and the client. Further, client Agreement may be assigned to any other provider who has entered into a Demand Relief Partnership Agreement with the CPA. 2.3 Effect of Expiration or Termination. Expiration or termination of this Agreement shall not affect the accrued rights and obligations of either Party, including either Party's obligations to make all payments to the other Party pursuant to this Agreement. 2.4 Termination Process. If either Party shall fail to perform any material obligation imposed on it by this Agreement or an ASC audit of the Client confirms that Client would have been unable to Deliver the Committed Capacity in all Peak Hours in any Month that the ASC did not issue a Dispatch Instruction, at its option, the party not in default may terminate this Agreement by giving the Party in default notice setting out specifically the circumstances constituting the default and declaring its intention to terminate this Agreement. If the Party receiving the notice disputes the notice, it shall notify the other Party within seven (7) days after receipt of the notice setting out specifically the grounds of such dispute. Time is of the essence in remedying a default. If the Party receiving the notice does not respond, within ten (10) days after receiving the notice, the Party not in default shall be entitled by a further notice to terminate this Agreement. The Party not in default shall have a duty to mitigate damages. Termination of this Agreement shall be without prejudice to the right of the Client to collect any amounts due to it prior to the time of termination. ARTICLE 3: DISPATCH OF PROJECT 3.1 ASC's Right to Dispatch. Subject to the limitations set forth in this Agreement, ASC shall have the right to direct the dispatch of Committed Capacity from the Client up to twenty-four (24) July 1st, 2002 Demand Relief Program Agreement.doc 4 hours per Month by issuing Dispatch Notices to Client. Each Requested Operation Period(s) under a Dispatch Notice issued under this Section 3.1 shall-be of duration for two (2), four (4), six (6), or eight (8) consecutive hours. Duration shall be determined by the client and entered on Schedule 1. 3.2 Timing of Dispatch Notices. ASC may issue a Dispatch Notice at any time consistent with ASC's right to dispatch as set forth in section 3.1, and ASC will endeavor to issue Dispatch Notices for Demand Reduction only after declaration by ISO of a Warning/Stage Alert Hour in the ISO control. ASC will only issue Dispatch Notices for Demand Reduction at the top of a Peak Hour, unless system conditions on the ISO control grid and in the ISO control area require otherwise. Client agrees to be available to receive paged dispatch notices for Delivery of Contracted Load. It is the Clients responsibility to insure the operational status of the ASC's pager(s). ASC's cost of the pager'(s) rental'(s)~ and airtime'(s), shall be deducted from each recipients first compensation. ARTICLE 4: DELIVERY OF COMMITTED CAPACITY 4.1 Client's Delivery of Committed Capacity. (a) Subject to the limits in this Agreement the Client shall provide Committed Capacity in the amount of the Requested KVV and for the full Requested Operating Period(s) specified in each Dispatch Notice within ten (10) minutes for Non-Spin and sixty (60) minutes for Replacement of receipt of each Dispatch Notice. (b) The Client shall comply with the metering and related arrangements set forth in this Agreement. 4.2 Delivery Calculation. The amount of Committed Capacity delivered by the Client pursuant to any given Dispatch Notice shall be determined through "Attachment A" incorporated herein. July 1st, 2002 Demand Relief Program Agreement.doc 5 ARTICLE 5: BILLING AND SETTLEMENT 5.1 Payment. Commencing as of July 1, 2002 ASC shall pay the Client for each Month during the term of the Agreement a Monthly Capacity Payment equal to the Fixed Priced Amount less the Non-Performance Payment Offset for the corresponding Month calculated in accordance with Section 5.2. The Client shall not receive payment for Delivery of capacity in excess of Committed Capacity or Requested kW. 5.2 Non-Performance Payment Offset. Client shall be assessed a Non- Performance Payment Offset for any Month during the Project Initiation Period in which it fails to Deliver one hundred percent (100%) of the Requested kW for all Dispatch Notices issued for that month. The Non- Performance Payment Offset will be calculated as follows: (a) If the Client delivers on average equal to or greater than the Requested kW for all Dispatch Notices issued in any Month during the Peak Period, there will be no Non- Performance Payment Offset for that Month. (Participant paid 100% of capacity during the project initiation period. After the project initiation period, participant paid 100% capacity and 100% of energy. (b) If the Client delivers on average between eighty percent (80%) and less than one hundred percent (100%) of the requested kW for all Dispatch Notices issued in any Month during the peak period, the Non-Performance Payment Offset for that Month will be equal to the Committed Capacity not delivered for that Month. ISO imbalance charges will apply (after the project Initiation Period). No Compensation for capacity or energy will be made for any month where participation is 80% or less. ARTICLE 6: GUARANTEES OF PERFORMANCE Section 6.01 Non-performance Charqes. (a) Except as provided in (b), after the Project Initiation Period the Capacity Payment paid or payable in any month shall be reduced by the sum of the amounts determined for each hour in such month in accordance with the following formula: July 1st, 2002 Demand Relief Program Agreement.doc 6 (A - B) x C (b) Notwithstanding the provisions of (a), after the prOject Initiation Period, the Capacity Payment paid or payable in any month shall be reduced by the sum of the amounts determined for each Warning/Stage Alert Hour in such month in accordance with the following formula: (A - B) x (C x 4) Where, for the purpose of either (a) or (b): A = Contracted Energy Scheduled or dispatched by ASC for an hour B = Contracted Energy actually reduced during an hour C = Applicable Hourly Capacity Price (c) For those hours after the Project Initiation Period to which (a) or (b) would not apply because Contracted Energy has not been scheduled or dispatched by ASC, if in any such hour (i) the ASC conducts a test of Capacity and determines that such Capacity is less than the Monthly Nominated Capacity. (ii) The Capacity Payment paid or payable in any month shall be reduced by the sum of the amounts determined for each such hour in accordance with the following formula whereby the minimum reduction shall be zero (0): (A - B) x C Where, A = Monthly Nominated Capacity for an hour B = Capacity as tested by the ASC C = Applicable Hourly Capacity Price ... Nothing in this subsection (¢) shall affect ASC's rights under Section (c), (i) or (ii) hereof. (d) For the purposes of (a) or (b), to the extent a Permitted Period is less than an hour and Contracted Energy is Scheduled or dispatched during such Permitted Period and such Energy is not actually reduced, such Contracted Energy shall be treated as Scheduled or dispatched and as not July 1st, 2002 Demand Relief Program Agreement.doc 7 reduced for the entire hour unless ASC again Schedules or dispatches Contracted Energy for reduction for a Permitted Period during such hour and such Contracted Energy as Scheduled or dispatched is in fact reduced for such Permitted Period, in which case, for the purposes of (a) or (b) for such hour: A = Permitted Periods (in minutes) during an hour B = Contracted Energy actually reduced during each minute of the Permitted Periods (MWminutes) C = Applicable Hourly Capacity Price/60 ARTICLE 7: COSTS Operating and Maintenance Costs. The Client shall be responsible for all its costs incurred in meeting its obligations under this Agreement for the Committed Capacity identified in Schedule 1. ARTICLE 8: REPRESENTATIONS AND WARRANTIES 8.1 Representations and Warranties of the Parties. Each Party represents and warrants that the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary actions, to the extent authorized by law. 8.2 Additional Representations and Warranties of the Client. The Client additionally represents and warrants to ASC as follows: (a) The Client is not a participant in any of the uDc interruptible and/or curtailable load programs or any other demand responsiveness or curtailable program. (b) The Client is a UDC bundled customer and not a direct access customer or served by a California municipal utility. (c) The Client has a 15-minute interval meter approved by the Local Regulatory Authority. July 1st, 2002 Demand Relief Program Agreement.doc 8 (d) The client will sign a Third Party Authorization allowing ASC to request meter data, Meter Pulse Service, and provide password access to interval data as may be available on a web database provided by the UDC. (e) A generator used under this program complies with the California Air Resource Board's Guidelines or is operated with natural gas. (f) The Client has all necessary leases, approvals, permits, licenses, easements, rights of way or access to install, own and/or operate its Load or will obtain them prior to the effective date of this Agreement ARTICLE 9: MISCELLANEOUS 9.1 Notices: All notices relative to this Agreement shall be given in writing and shall be personally served or sent by certified or registered 'mail. The parties shall be addressed as follows, or at any address designated by notice: CITY: CITY OF BAKERSFIELD ASC: ANCILLARY SERVICES COALITION, LLC CITY HALL 17602 17th St. 102-254 1501 Truxtun Ave. Tustin, CA 92780 Bakersfield, CA 93301 714-734-3680 661-326-3767 9.2 Confidentiality. Each party shall hold this Agreement, all documents, data and information provided by the Parties to one another pursuant to this Agreement in strictest confidence, to the extent permitted by law. 9.3 Entire A.qreement. This Agreement represents the entire understanding between the parties, and all prior oral and written Agreements have been merged herein. 9.4 Beneficiary of A,qreement. This Agreement shall inure to the benefit of, and be binding upon, the heirs, successors, transferees, and assignees of both parties. 9.5 Amendment of A,qreement. This Agreement may not be altered or amepded except by an instrument in writing signed by both Parties. July 1st, 2002 Demand Relief Program Agreement.doc 9 9.6 Resolution of Controversy or Claim. The laws of the State of California shall govern this Agreement. These parties hereby agree that the only appropriate court for the resolution of any controversy that may arise over the interpretation or enforcement of this Agreement is the Superior Court of the State of California. 9.7 Attorney Fees if any action is brought by either Party to enforce or seek damages for breach of any provision of this Agreement, the prevailing Party in such action, shall be entitled to recover, reasonable attorneys' costs and expenses incurred by the prevailing Party. 9.8 Authorized to Execute A,qreement. The individual executing this Agreement hereby represents that he or she is duly authorized to execute and deliver this Agreement on behalf of the Party for whom he or she executes it and that this Agreement is binding upon that party in accordance with its terms. IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written. City of Bakersfield Name: Florn Core Title: Water Resources Director Ancillary Services Coalition, LLC. By: Name: Title: July 1st, 2002 Demand Relief Program Agreement.doc 10 SCHEDULE 1 COMMITTED CAPACITY AND FIXED PRICE AMOUNT DISPATCH DURATION: 4 hour increments/24 hours per month NON SPIN/RESERVATION: N/A FIXED PRICE AMOUNT: $8,250.00 per MW/month Accounts submitted under this Agreement: Committed Capacity (MW) Account # Meter # Description July Aug Sept JTC 35 39231 9270R3 Olcese #1 JTC 35 06632 9270R5 Olcese #2 JTC 35 37601 9337R6 Olcese #3 JTC 35 35971 9337R5 Olcese fi4 JTC 35 34341 X89951 Olcese #5 JTC 35 32711 9303R8 Olcese fl6 JTC 35 31081 9303R7 Olcese #7 JTC 35 29451 9228R8 Olcese #8 Total Committed 1.62 1.62 1.62 Capacity (MW) July 1st, 2002 Demand Relief Program Agreement.doc 11 SCHEDULE 2 NOTICES Name of Primary City of Bakersfield Water Resources Department Representative: Florn Core or Mark Lambert Address: 1000 Buena Vista Road City/State/Zip Code: Bakersfield, CA 93311 Email Address: fcore~,,ci, bakersfi eld .ca. us mlambert~,,ci.bakersfield.ca.us Phone Number: 661-326-3715 Fax Number: 661-326-3098 July 1st, 2002 Demand Relief Program Agreement.doc 12 Attachment A Protocol for Measuring Capacity and Energy Section 4.2 of the Agreement references this protocol that establishes the standards for measuring delivered capacity when dispatched. When capacity is not dispatched in a particular month, the capacity shall be the capacity tested form time to time in accordance with this Agreement. The qualified end user's baseline for measuring delivered capacity will be calibrated to the load shape to account for the normal change in customer's load during the course of the day. The normalized load shape will be calculated hourly based on the average for the past ten workdays, excluding Saturdays and Sundays and curtailment days excluding both the highest and lowest value for each hour. Excess Delivered Capacity Example: Assume contracted energy is scheduled in the CAISO hour ahead market. Assume for the following period that a contracted energy schedule was issued in hour 12 for hours 15 through 16: Hour 9 10 11 12 13 14 15 16 17 18 1 O-Day Average 10 10 10 11 11 11 12 13 12 11 Metered Amount 11 11 11 12 12 9 1 1 9 11 Baseline N/A N/A N/A N/A N/A N/A 13.2'* 14.3'* N/A N/A Negawatts N/A N/A N/A N/A N/A 12.2 13.3 N/A N/A All values in MWs The following procedure would compute the contracted energy reduced: First, Historical 1 O-day average excluding invalid dates is calculated. Second, Historical meter data for three Calibration Hours (which are the three hours before the notification) is calculated. Since the notification occurred in hour 12, the calibration hours would be the three hours before - hours 9, 10 and 1 I. Third, the ratio of the average of the three calibration hours (11MW) to the 10-day average of the same three hours (10MW) is computed (11 MW/10MW=I. 1). Fourth, that ratio (1.1) is multiplied by the 1 O-Day Average for each curtailment hour to compute the Baseline Quantity (12 X 1.1 = 13.2 MW for hour 15). Fifth, the metered amount for such hour is subtracted from the baseline quantity to yield the demand reduction for the hour ( 12.2 MW = 13.2MW - 1 MW for hour 15). A similar approach is used when the energy reduction is scheduled on a day ahead basis. In this case, the three calibration hours will be on the previous day. July 1st, 2002 Demand Relief Program Agreement.doc 13 Shortfall of Delivered Capacity Example: Assume contracted energy is scheduled in the CAISO hour ahead market. Assume for the following period that a contracted energy schedule was issued in hour 12 for hours 15 through 16: Hour 9 10 11 12 13 14 15 16 17 18 10-DayAverage 10 10 10 I1 11 11 12 13 12 11 Metered Amount 5 5 5 7 8 9 1 1 9 11 Baseline N/AN/AN/A N/A N/A N/A 6.0** 6.5** N/A N/A Negawatts N/A N/A N/A N/A N/A 5.0 5.5 N/A N/A All values in MWs The same procedure would compute the contracted energy reduced: First, Historical 1 O-day average excluding invalid dates is calculated. Second, Historical meter data for three Calibration Hours (which are the three hours before the notification) is calculated. Since the notification occurred in hour 12, the calibration hours would be the three hours before - hours 9, 10 and 11. Third, the ratio of the average of the three calibration hours (5MW) to the 1 O-day average of the same three hours (10MW) is computed (SMW/10MW=0.5). Fourth, that ratio (0.5) is multiplied by the 10-Day Average for each curtailment hour to compute the Baseline Quantity (12 X .05 -- 6.0 MW for hour 15). Fifth, the metered amount for such hour is subtracted fi.om the baseline quantity to yield the demand reduction for the hour (5.0 MW = 6.0MW - 1 MW for hour 15). For the Scheduling of Energy reduction on a Day Ahead basis on Monday, a typical This example demonstrates the impact of having a reduced load on the morning of the curtailment call even though the 10-day average is sufficient to justify the contracted committed capacity. Sunday/Monday Procedure: Sunday-Monday 48-hour load profile would be computed for the previous 5 weekends. Then the average 48-hour load profile would be calibrated to the three reference hours on Sunday (HE 1100, 1200, and 1300). July 1st, 2002 Demand Relief Program Agreement.doc 14 Draft Environmental Impact Report Kern Delta Water District Water Banking and In-Lieu Water Supply Project June2002 Prepared by Kern Delta Water District 501 Taft Highway Bakersfield, CA 93307 State Clearing House Number 2001011103 JUN CITY OF BAKEi:iSFiELD WATER RESOURCES Kern Delta Water District Water Banking and In-Lieu Water Supply Project Environmental Impact Report EXECUTIVE SUMMARY Project Summary Kern Delta Water District (Kern Delta; Figure ES-i) proposes to develop a Water Banking and In-Lieu Water Supply Project (hereafter "proposed project") on lands within and adjacent to Kern Delta. This proposed project will provide for the import of supplies from the California Aqueduct and/or other sources when such supplies are available and (a) storage of these supplies in the Kern Delta groundwater basin via direct groundwater recharge and/or (b) delivery of these supplies to growers for use in lieu of their extraction of groundwater. Kern Delta also proposes to utilize the groundwater storage capacity of the proposed project to provide "water banking" storage for supplies delivered to Kern Delta from The Metropolitan Water District of Southern California (Metropolitan). Metropolitan's banked supplies would be returned to Metropolitan when needed. The proposed project will require new facilities and connections with existing facilities, including: · Conveyance facilities, consisting of canals, pipelines,, and pumping stations and connections to existing Kern Delta and potential partner facilities; · Spreading basins distributed throughout Kern Delta; · A pipeline delivery system to serve growers in Kem Delta's Eastside Area as part of the in-lieu element; and · Groundwater extraction wells. The proposed project may involve'partnerships with neighboring agencies providing for (a) linkage and cooperative operation of new and existing conveyance facilities and/or (b) construction of facilities on partner lands. The nature of these partnerships and the location and operation of linked facilities will depend on the alternative selected for the proposed project by the Kern Delta Board. ES-1 2002 FRIDAY, JULY 12, www. bakersfleld.com Final edition 50 cents City, ag water district square off Banking plan could siphon c [~-s,,] for our area and hinder our ability to maintain In dry years, Kern Delt, awould return water to high-quality drinking water for our citizens," he Metropolitan by using Kern Delta's state project precious Kern River water to ^ map of the Kern Delta Water District. A2 said. "We thinkthe EIR is inadequate. Kern River supplies or local surface water. ...................................................................................................................... water shouldn't leave the basin." It's the phrase "local surface water" that has Southern California, officials say. heys voiced their opposition Thursday morning The water banking project is a partnemhip the city wome(L * A $40 ByMARYLEESHRID£R at Panama Elementary School, where Kern between Kern Delta and Metropolitan Water "When they say that, they're talking about the '~Plannedf°~MeadowsReldts Californian staff w~te~ Delta Water Dis~ict officials presented the envi- Disl~ct of Southern Califomi~ Kern River,' said Flora Core, Bakemfield Water ~: m~k~e~m~d.~om . ronmental impact report on their groundwater The plan calls for Met~opolit,'m to spend $33.5 Resources director. "If they removed that por- invested City offici,~ls are livid over a water exchange banking project, million to build infrastructure -- spreading tion from the repo~, that would be greaL But plantheysaywouldpayoffbigforoneagwater City Councilman and Bakemfield W~ter basins, water wells and canals -- within the they can't take Kern River water --we can't district but shaft local residents by sending high Board Chairman M,xrk Salvaggio said the plan is Kern Delta district, afford it.' quality Kern Riverwater to the LosAngeles area. unacceptable as it stands. Metropolitan would then use those facilities Officials also fear State Water Project w~er, ' ':.'**; ~:. ~ -- ~ A9 City wa~cer board members and their attor- ~Suchaprogramwillsetatembleprecedent to store suxplus Sta~ Wa~er Project water. Please turn to WATER / A2 .' ....................... WATER:Proponents of exchange plan Kern Delta Water District claim Kern water will not be degraded Lerdo Hwy.S ~a(~r~ ~ "q which is very salty, will degrade pris- eamed about $45 million for the proj- tine Kern River water -- the city's ect, according to Dirk Reed, Metropol- drinldng water source, itan project manager. I - Kern Delta District Manager Mark City officials said the EIR for thc ' Mulkay said such fears are unfounded, proposed Kern Delta deal does not go "We have supplies from many differ- far enough in addressing the potential ent sources," he said. "We can get sup- impact to the fiver. plies from the State Water Project, the City attorney Colin L. Pearcc ~xid ..... ~.. Friant system and we have well water, the EIR was so deficien! it. would have too. The city reads it one way, but we [o be ~withdraam, resch~ded and mean it ~o say we'll use whatever rewritten." t'~' sources we can get ahold of.' The city plans to put its concerns in ( ...." ~"'-"~ Mulkay said there's a chance Kern writing. ' River water could flow from the valley The comment period on the project since several sources are nfingled, ends July26. But any fiver water tirol did escape Mulkay said fl~e district ~fill take ~ would be nfinimal, rote consideration all conunents and (r~ (' I - Buena Vista Canal "I'm not saying Kern River mole- questions and then its board of direc- ~ .................... i 2- Stine Canal cules won't leave the valley," he said. tom will decide whefl~er to go forward. Mar!copa ~. / 3- Farmers Canal "If we can work deals and exchanges If approved by the board, construc- / ~ ~ 4 - Kern Island Canal Ix) keep water in the county we'll do lion could begin in December or the 5-Central Branch Canal that" first part of next year, Mulkay Smd. ./F,...,.? O. ~ ~n Canal Kem Delta owns rights to a portion There is no other agency that has to ~., o~, of the Kern River and feels the city has sign offon the plan. '"~°~ ~t2_~.q.,.~ 5 miles ~ no say in how it uses that water, Salvaggio said if Kem Delta ignores according to Mulkay. the city's concerns, or the response is ~ ' This isn't the first water deal with unsatisfactory, the issue could land in ;ource: Kern County Water Agency THE CALIFORNIAN Metropolitan to attract controversy, court. The Arvin-Edison Water Storage drew a firestorm of criticism when it first proposed selling San Joaquin River water to Metropolitan in the mid- 1990s. Ultimately, the deal was modified, and Arvin-Edison now stores about 200,000 acm feet of State Water Project water for Me~'opolitan, which is used indryyeam It received about $25 million in exchange. The Semitropic Water Storage Dis- trict also struck a deal with Me~'opoli- tan in 1995 and, to dale, has slored a March 13, 2001 Page 1 of 2 OF SOUTHERN CALIFORNIA I .,~o¢,,,s , .~,'Ev,'s , ,~',~'E'ss ~s,'E.4's.a.s iSite index DEALS TEED UP FOR TRANSFER, STORAGE AGREEMENTS AFTER METROPOLITAN'S FIRST MARKET SEARCH MWD portfolio includes stable water rates for fifth straight year March 13, 2001 LJ Expanding Southern California's portfolio of water resources while promoting an orderly statewide water market, Metropolitan Water District's board of directors today initiated the first in a series of water transfers that will help ensure the region's imported supplies during dry years. Culminating a competitive process that began 15 months ago, Metropolitan's board conceptually approved separate agreements with the Kern Delta Water District in the state's Central Valley and San Bernardino Valley Municipal Water District that together would transfer enough water to meet the needs of up to 200,000 Southland families during a water-short year. "Under our new management team, we are putting aside old rivalries so that Southern California could benefit with greater water reliability durin9 dry years," said MWD board Chairman Phillip J. Pace. According to MWD General Manager Ronald R. Gastelum, limits on water supplies imported from the Colorado River and Northern California and the state's unexpected power situation demonstrated the need for the Southland to invest in a diversified portfolio of water resource investments. "In a land of natural scarcity, Metropolitan and its member public agencies cannot take anything for granted in meeting the public trust for reliable, clean and affordable water supplies," Gastelum said. in addition to the water transfers, Metropolitan's board moved ahead with studies and tests on groundwater storage programs along the Colorado River and voted to keep the district's base water rates and charges at current levels for the fifth straight year. "In coming months, our board will consider other essential components in our portfolio of diverse resources that represent the region's collective creativity in planning and investing for the future," Gastelum said. The Kern Delta and San Bernardino Valley programs are among five multi-year proposals Metropolitan is pursuing after the district embarked on a process in December 1999 to purchase transfer options on up to 100,000 acre-feet of water a year. "Both transfers offer Southern California cost-effective, competitive options to augment the region's supply reliability during hydrologic and regulatory droughts," Gastelum said. "The Kern Delta groundwater banking and exchange program also presents the added benefit of potentially improving the quality of water delivered through the California Aqueduct." Und, er principles of a,qreement authorized today for a 25-year proflram,, Metropolitan would store up to 250,000 acre-feet of its available State Water Project supplies in the groundwater basin underlying Kern Delta and the Arvin-Edison Water Storage District in the Bakersfield area. (An acre-foot of water is nearly 326,000 gallons, about the amount used by two typical Southern California families in and around their homes per year.) During dry years, Metropolitan can call for as much as 50,000 acre-feet of water through an http ://www.mwdh2o.corn/mwdh2o/pages/news/press_releases/2001-03/portfolio.htm 7/12/2002 March 13,2001 Page 2 of 2 , exchange of the stored water for Kern Delta's state project supplies or local surface water that would be placed in the SWP's California Aqueduct for delivery to the Southland_The stored water also can be recovered and placed back in the state aqueduct by using existing or new Kern Delta facilities. Approved in concept by the MWD board today, a 10-year agreement with San Bernardino Valley calls for Metropolitan to purchase a minimum of 20,000 acre-feet of SBVMWD's annual state project allocation, with an MWD option to acquire additional available state supplies from San Bernardino Valley. The transferred water would be delivered to Metropolitan through the coordinated use of the respective districts' facilities and interconnections. The available SWP supplies would include direct deliveries through the California Aqueduct to MWD's service area as well as transfers of recaptured state supplies previously stored by San Bemardino Valley in its groundwater basin. Metropolitan retains the option of carrying forward any portion of the purchase water up to a total of 50,000 acre-feet for later delivery. In moving ahead with the transfer, Metropolitan and San Bernardino Valley also agreed to settle long-standing differences by dismissing outstanding lawsuits between the agencies related to the delivery of imported water by SBVMWD to other agencies within MWD's service area. Through cooperation, both agencies have moved past old issues by reaching a mutually beneficial agreement to bring additional dependable water supplies to Metropolitan, while helping San Bemardino Valley resolve its long-standing groundwater issues," Gastelum said. As part of its continuing efforts to reduce Southern California's use of Colorado River water, the board also authorized agreements to conduct additional studies and tests of groundwater -storage basins along the district's Colorado River Aqueduct. Metropolitan proposes to store a total of up to 800,000 acre-feet of available Colorado River water in the Upper Chuckwalla and Hayfield groundwater basins. The Upper Chuckwalla basin is adjacent to MWD's Eagle Mountain Pumping Plant, about 15 miles north of Desert Center in Riverside County. The Hayfield basin adjoins the district's Julian Hinds Pumping Plant near Chiraco Summit, east of Palm Springs. When supplies are needed, water stored in the Hayfield and Chuckwalla programs, along with similar programs proposed with Santa Monica-based Cadiz Inc. and Coachella Valley Water District, would be pumped and delivered to urban Southern California. The four groundwater storage proposals have been recognized by the state of California in its plan to live within the state's annual Colorado River allotment. Under its action on rates, drinking water treated at one of Metropolitan's five filtration plants remains at $431 per acre-foot and untreated water at $349 per acre-foot for fiscal year 2001-02. http://www.mwdh2o.com/mwdh2o/pages/news/press_releases/2001-03/port£olio.htm 7/12/2002 "-,:, AGREEMENT NO. ~,~ ATTORNEY RETAINER AGREEMENT THIS AGREEMENT is made and entered into on , by and between the CITY OF BAKERSFIELD, a chartered municipal corporation, (referred to herein as "CITY") and DUANE MORRIS LLP (referred to herein as "ATTORNEY"). RECITALS WHEREAS, it is necessary and appropriate that legal services be performed for CITY to represent CITY, its officers and employees with respect to matters for which the Office of the City Attorney either has a conflict or lacks the necessary staff or expertise to properly handle; and WHEREAS, CITY desires to retain ATTORNEY to perform legal services on behalf of CITY with respect to the matter described below. NOW, THEREFORE, incorporating the foregoing recitals herein, the parties agree as follows: 1. SERVICES TO BE RENDERED: ATTORNEY will, as co-counsel with the Office of the City Attorney, or its designee, represent CITY in the following matter: Kern Delta Water District EIR and associated litigation. 2. C, OMPENSATION TO ATI'ORNEY. CITY, for and in consideration of the terms and conditions set forth herein, hires ATTORNEY to perform legal services with respect to the matter(s) described above. CITY shall compensate ATTORNEY for all services performed by A'I-rORNEY on an hourly basis in an amount according to the Fee Schedule attached as Exhibit 'A," except for travel time which shall be paid at a maximum of one-half (1/2) ATTORNEY's normal hourly rate, and reimburse ATTORNEY for all proper costs ATTORNEY incurs on behalf of CITY as set forth herein. Prior to payment all bills shall be reviewed and approved by the City Attorney or his designee. CITY shall pay ATTORNEY thirty (30) days after receipt and approval of billing. CITY shall pay no finance charge to ATTORNEY. S.-~Attome~Agrs~DuaneMo~ns.Attyfltn r.wpd J~y 9. ~,o02 -- Page 1 of 7 Pages -- 3. REIMBURSEMENT POLICY AND BILUNG REQUIREMENTR,. 3.1 CITY shall reimburse ATTORNEY for all out of pocket and necessary costs for the following items: 3.1.1 Deposition and transcription fees 3.1.2 Filing fees 3.1.3 Travel 3.1.4 Consultant and expert witnesses fees, when approved in advance. 3.1.5 Database Entry Costs when approved in advance. 3.1.6 Faxes and mailings at actual cost. 3.1.7 Other expenses when approved in advance. 3.1.8 Meals and lodging not to exceed CITY per diem, unless approved in advance. 3.2 CITY will not reimburse ATI'ORNEY for staff time or overtime for secretarial, clerical or word processing costs, time spent to provide information for a fee audit or for any type of work not authorized by CITY. Data entry (database work) shall be pre-approved and separately billed. 3.3 Travel will be reimbursed as follows: Transportation at actual fare for economy or coach class, meals and lodging not to exceed CITY per diem unless authorized in advance. 3.4 All invoices for payment shall contain an itemization of all costs and fees and must be broken down monthly and shall clearly state the total fees accumulated. The following information shall be set forth accurately in, or attached to, the billing invoice: 3.4.1 The following P.O. Number . Said number must be listed on all billing statements. 3.4.2 Case name, court number. 3.4.3 Staffing level, hourly rate and detailed time and activity descriptions for each A'I-I'ORNEY and/or paralegal, including time spent with respect to conferences, correspondence, · depositions, document filing, hearings, meetings, research, case review, travel, tdals and telephone calls. Data entry to be separately billed. 3.4.4 Invoices supporting all outside costs. 3.4.5 Total fees accumulated to the date of the invoice. 4. TERM. This Agreement shall take effect as of the date first above written and remain in effect until final disposition of the case assigned, unless earlier terminated as provided herein. Attor neyRetaJnerAg~'eernent S:~S. tto ~gr s~DuaneMorrts. At¥=~nr.wlx~ .~yg.~x~2 -- Page 2 of 7 Pages -- 5.* ACCEPTANCE OF ASSIGNMENTS AND- REPRESENTATIONS. AT'T*ORNEY, with respect to the case hereby assigned, represents as follows: 5.1 ATTORNEY has the expertise, support staff and facilities necessary to fully represent CITY's interest in the litigation described herein; and 5.2 ATTORNEY does not have an actual or potential interest adverse to CITY nor does ATTORNEY presently represent a person or firm with an interest adverse to CITY with respect to the matter accepted; and 5.3 ATTORNEY shall diligently provide such legal services as are necessary in a professional, timely manner upon the terms and conditions as set forth herein. 6. REPORTING REQUIREMENTS. ATTORNEY shall provide to the City Attorney, or designee, appropriate reports as requested by CITY. 7. ASSIGNMENT. The Agreement shall not be assigned by any party, or any party substituted, without prior written consent of all the parties. 8. NEGATION OF PARTNERSHIP. CITY shall not become or be deemed a partner or joint venturer with ATTORNEY or associate in any such relationship with ATTORNEY by reason of the provisions of this Agreement. ATTORNEY shall not for any purpose be considered an agent, officer or employee of CITY. 9. INSURANCE. In addition to any other insurance or bond required under by this Agreement, ATTORNEY shall procure and maintain for the duration of this Agreement the following types and limits of insurance ("basic insurance requirements' herein): 9.1 Prcfessional liability_ Insurance providing coverage on claims made basis for errors and omissions with limits of not less than one million dollars ($1,000,000) aggregate; and 9.2 Automobile liabilitvinsurance providing coverage on an occurrence basis for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than one million dollars ($1,000,000) per occurrence; and the policy shall: 9.2.1 Provide coverage for owned, non-owned and hired autos. 9.3 Workers' comDensation insurance with statutory limits and employer's lability insurance with limits of not less than one million dollars ($1,000,000) per accident; and the policy shall contain a waiver of subrogation and additional insured endorsement in favor of CITY, its mayor, council, officers, agents, employees and volunteers. Atto~r~rA~'~t J,~y 9. 20o~ -- Page 3 of 7 Pages - 9.4 Except for workers' compensation, insurance is to be placed with insurers with a Bests' rating of no less than A:V. Any deductibles, self-insured retentions or insurance in lesser amounts, or lack of certain types of insurance otherwise required by this Agreement, or insurance rated below BeSts' A:V, must be declared pdor to execution of this Agreement and approved by CITY in wdting. 9.5 All policies shall contain an endorsement providing CITY with thirty (30) days written notice of cancellation or material change in policy language or terms. All policies shall provide there shall be continuing liability thereon, notwithstanding any recovery on any policy. Copies of policies shall be delivered to CITY on demand. 9.6 The insurance required hereunder shall be maintained until all work required to be performed by this Agreement is satisfactorily completed as evidenced by written acceptance by CITY. 9.7 The ATTORNEY shall furnish the City Risk Manager with a certificate of insurance and required endorsements evidencing the insurance required. The CITY may withdraw its offer of contract or cancel this contract if certificates of insurance and endorsements required have not been provided prior to the execution of this Agreement. 9.8 Unless otherwise approved by CITY, if any part of the work under this Agreement is subcontracted, the "basic insurance requirements" set forth above shall be provided by, or on behalf of, all subcontractors even if CITY has approved lesser insurance requirements for ATTORNEY. 10. TERMINATION. Either party may terminate this Agreement upon five (5) days written notice. ATTORNEY shall, upon termination, forthwith deliver to new counsel as directed by the City Attomey a Substitution of Attorney form signed by ATTORNEY. CITY may terminate this Agreement immediately without notice upon determining that such action is necessary to protect the interests of CITY. 11. OWNERSHIP ,AND INSPECTION OF FILES. All files, pleadings, reports, documents and other items remitted to ATTORNEY pursuant to this Agreement are and shall remain the property of CITY and shall be returned to CITY upon full completion of each matter after the time for appeal has run. During the pendency of the case remitted, all billing, invoice, time and other non-privileged portions of the file shall be made available for inspection by the Finance Director and Intemal Auditor of CITY or other person designated by the City Attorney at all reasonable times. It is understood and agreed dudng the pendency of any conflict representation case, physical possession of the file shall remain with A'I-rORNEY who shall hold inviolate the confidences of client as required by law. Should this Agreement be terminated, the files shall be returned to CITY wflh all privileged materials appropriately sealed for transmittal to successor attorney of record for client. AttorneyFletainerAgreement ~:~/~ttorneCAgts',.Ouar. eMo~is.Attyl:ltnr.wlxt · ~,y 9. 2oo2 -- Page 4 of 7 Pages - 12. 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: OFFICE OF THE CITY ATTORNEY CITY OF BAKERSFIELD 1501 Truxtun Avenue Bakersfield, CA 93301 Telephone: (661) 326-3721 Facsimile: (661) 325-9162 ATTORNEY: COLIN L. PEARCE, ESQ. DUANE MORRIS LLP 100 Spear Street, Suite 1500 San Francisco, CA 94105 Telephone: (415) 371-2200 Facsimile: (415) 371-2201 13. 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 dght to enforce such a provision at a later lime and shall not serve to vary the terms of this Agreement. 14. MERGER AND MODIFI~.ATION. 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. 15. BINDING EFFECT. The dghts and obligations of this Agreement shall inure to the benefit of, and be binding upon, the parties to this Agreement and their heirs, administrators, executors, personal representatives, successors and assigns. 16. GOVERNING LAW. The laws of the State of California will govern the validity of this Agreement, its interpretation and performance. Any litigation adsing in any way from this Agreement shall be brought in Kern County, California. 17. TIME. Time is of the essence of this Agreement. 18. ACCOUNTING RECORDS. ATTORNEY shall maintain accurate accounting records and other written documentation pertaining to the costs incurred in performance of this Agreement. Such records and documentation shall be kept at A'I-I'ORNEY's office during the period of this Agreement, and for a pedod of three years from the date of the final payment hereunder, and said records shall be made available to CITY representatives upon request at any time during regular business hours. AttorneyRetalne~Agreement S:~Attomey~s~Du ahem on-is.A,'tyfltn r.wi=d Ju~ 9. ~oo~ -- Page 5 of 7 Pages -- 19. 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. 20. CORPORATE AUTHORITY. Each individual executing this Agreement represents and warrants they are duly authorized to execute and deliver this Agreement on behalf of the corporation or organization, if any, named herein, and this Agreement is binding upon said corporation or organization in accordance with its terms. 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. TAX NUMBER~. ATTORNEY's Federal Tax Identification No. ATTORNEY is a corporation? Yes No (Please check one.) 23. COMPLIANCE WITH A~.I~ LAW~. CONTRACTOR shall, at CONTRACTOR'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. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands the day and year first above wdtten. CITY OF BAKERSFIELD ("CITY") DUANE MORRIS LLP ("ATTORNEY") By: By: HARVEY L HALL COLIN L. PEARCE Mayor More Signatures on Following Page Atto rne~:{etafnerA~Feemertt S:'~Mto rneyV~gr s'd3 ua neMorris. AUyRtnr.wpd Ju~yg. 2oo2 -- Page 6 of 7 Pages - APPROVED AS TO FORM: BART J. THILTGEN City ATTORNEY By:. ALAN D. DANIEL Deputy City Attomey Insurance: COUNTERSIGNED: By: GREGORY J. KLIMKO Finance Director Attachment: Exhibit "A" ADD:Isc AttomeyFletainerAgreement S:~Atmrn~DuanelVlo~s.Att3~ltnr.wpd Ju~y 9, ~ -- Page 7 of 7 Pages -- PROFESSIONAL FEE SCHEDULE STAFF MEMBER RATE Attorneys Thomas M. Berliner $250 per hour Colin L. Pearce $225 per hour Associates $175 per hour Jeffrey I. Piade $125 per hour Belinda Morales $125per hour COSTS AND EXPENSES In-office, photocopying .;' $ .25/page Mileage ~.~ At cost Faxes (long distance) $ 2~00/page Faxes (local) $ .50/page Telephone (long distance) At cost EXHiBiT'