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HomeMy WebLinkAbout07/20/06 City of Bakersfield Water Board Special ~eeting of ,July 20, 2006 "Kern River at 24~ Street" Water Resources File Packet B A K E R S F I E L D WATER BOARD David Couch, Chair Harold Hanson, Vice Chair Zack Scrivner NOTICE Notice is hereby given that the Regular Meeting of the City of Bakersfield Water Board scheduled for Wednesday, July 26, 2006, at 2:00 p.m. has been cancelled. Notice is further given that a Special Meeting of the City of Bakersfield Water Board will be held on Thursday, July 20, 2006. CITY OF BAKERSFIELD WATER BOARD SPECIAL MEETING Thursday, July 20, 2006 - 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 May 17, 2006 regular meeting for approval - For Board Review and Action 4. PUBLIC STATEMENTS 5. KERN RIVER LEVEE DISTRICT 6. REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Information 7.' MISCELLANEOUS 8. DEFERRED BUSINESS 9. NEW BUSINESS A. Cost Sharing Agreement with Kern River Interests for Expert Advice and Technical Information Regarding the Restriction on Use of Isabella Reservoir Storage Space - For Board Approval B. Annexation Agreement with Rosedale Rio-Bravo Water Storage District- For Board Approval and Recommendation to City Council C. Agreement between Chevron U.S.A., Kern Delta Water District and City for Use of Carrier Canal System - For Board Approval 10. WATER BOARD STATEMENTS 11. CLOSED SESSION A.' Conference with Legal Counsel -- Existing Litigation Closed session pursuant to subdivision (a) of Government Code section 54956.9. 1. North Kern Water Storage District vs. Kern Delta Water District,' et al; Tulare County Superior Court Case No. 96-172919 5th Appellate District Court Case No. F047706; 2. City of Bakersfield v. Kern Delta Water District Kern County Superior Court Case No. S-1500-CV-258097-RJO 11. 'ADJOURNMENT Florn Core Water Resources Manager POSTED: July 177 2006 S:\WB MINUTES 2006\WBAGENDAJuly'2006.doc Water Board Special Meeting July 20, 2006 3. MINUTES A. Minutes of the May 17, 2006 regular meeting for approval - For Board Review and Action B A K E R S F I E L D WATER BOARD David Couch, Chair Harold Hanson, Vice Chair Zack Scrivner MINUTES OF THE REGULAR MEETING OF THE WATER BOARD - CITY OF BAKERSFIELD Wednesday, May 17, 2006 - 2:00 p.m. Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 1. CALL TO ORDER The meeting was called to order by Chairman Couch at 2:00 ~3. m. 2. ROLL CALL Present: Chairman Couch, Hanson, Scrivner Absent: None 3. MINUTES A. Minutes of the March 15, 2006 regular meeting for approval. Motion by Hanson to approve the minutes. APPROVED ALL A YES 4. PUBLIC STATEMENTS None.. 5. KERN RIVER LEVEE DISTRICT A. AB 1899 (Wolk) concerning Land Use: Flood Protection. FIorn Core, Water Resources Manager, stated AB 1899 gives the State authority to approve developments within a 200 year flood plain area. The Kern River Levee system was designed to contain a 100 year flood event. The State has not analyzed, designed or studied what the 200 year flood line is on the Kern River. This could pose a serious restriction on development. City staff has reviewed the bill and suggests opposition to AB 1899 in the current form and recommend City Council opposition by resolution. Bakersfield, California, May 17, 2006- Page 2 5. KERN RIVER LEVEE DISTRICT continued A. Couch requested staff meet with James Beck, Kern County Water Agency, after it has been presented to the City Council to discuss recommended language to the State. City Attorney, Virginia Gennaro, stated her office will prepare the Resolution. Motion by Scrivner to recommend the City Council approve and forward to the State a resolution opposing, in current form, AB 1899 (Wolk). 6. REPORTS A. Kern River & Isabella Reservoir Operations Report. Steve Lafond, Hydrographic Supervisor, stated the forecasted runoff for the Kern River is currently 149% of normal. It was projected a filling of Isabella Reservoir to the 570,000 acre feet mark, however, on April 28th, due to seepage and groundwater elevation concerns at the Isabella Auxiliary Dam, the US Army Corps of Engineers took control of the lake outflow to begin an immediate reduction of lake storage with the goal of reaching 360,000 acre feet as soon as possible. A serious immediate impact of the Corps decision is that water will be lost to the City and other Kern River Interests as there is not room for use and underground storage of the high outflows from the dam. We are seeing up to 2,000 cfs of Kern River Water entering the California Aqueduct. The particulars of the California Aqueduct operation aren't fully known to us but it's considered lost to Kern River service area. The Corps is beginning to address carryover issues for Lake Isabella this fall. It will be a significant finding as to what we can maintain in the reservoir in terms of winter carryover and what will be reserved for flood control protection. Staff will continue to apprise the Water Board as the situation progresses through the season. NO ACTION TAKEN. 7. MISCELLANEOUS A. DISCUSSION WITH KERN COUNTY WATER AGENCY BOARD AD HOC COMMI'I-rEE AND STAFF Members of the Kern County Water Agency Board of Directors, Fred Starrh, Vice President, Michael Radon and Gene Lundquist were present for discussion of the following items: 1. Kern River Channel Recharge and Recreation Agreement (Kern River Parkway) Florn Core, Water Resources Manager, stated due to the situation with the Isabella Reservoir, he suggested deferring the Recharge and Recreation Agreement to a later date when it is known for certain what water supplies will be available and how carryover and releases are going to be affected. This year the river will have plenty of water through the middle of July. Bakersfield, California, May 17, 2006 - Page 3 7. MISCELLANEOUS continued A. 1. Mike Radon stated he agreed with Mr. Core and made further comments. He suggested City staff meet with their Ad Hoc Committee sometime at the end of summer to finalize the agreement and move forward. Chairman Couch stated he and City staff will meet with the Agency Ad Hoc Committee and requested staff schedule a date for the meeting prior to the Labor Day holiday. 2. 2005 Urban Water Management Plans Moved to discuss later on the agenda 3. Revision to Pioneer Project Joint Operating Agreement Florn Core, Water Resources Manager, stated that an amendment to this agreement is moving ahead to fall within requirements of the KCWA/Bolthouse/Castle & Cooke/City Land Exchange Agreement, which is slated for approval in the next couple of weeks. Jim Beck stated the Land Exchange agreement will be on the Agency's Board meeting agenda on May 24, 2006. 2. 2005 Urban Water Management Plans Florn Core, Water Resources. Manager, stated the state requires the Urban Water Management Plan (UWMP) be updated a minimum of once every five years. The UWMP was before the Water Board in December, 2005 as a public hearing. Comments were received and it was determined that City Domestic Water will file its UWMP with the State of California and allow another period of time to receive comments up until the March 15th Water Board meeting. Comments were received up to that date. Subsequent to that, responses to the comments have made and staff is reviewing whether to amend the UWMP. Mike Radon, KCWA Board Member, stated they were going to ask, that KCWA and City staff meet with the ground water mediation group and get the City more involved in the process. Terry Chicca, Vice President, Buena Vista Water Storage District, stated the ground water basin that we all share is one of the greatest assets that the county has. There have been questions as to the status of the City's water supply and its future intentions. He would encourage the process to continue with the agency and perhaps some of the other water experts in the county. Chairman Couch moved Item 7.A.6. forward on the agenda. Bakersfield, California, May 17, 2006 - Page 4 7. MISCELLANEOUS continued A. 6. Acquisition of Additional Water Supplies for Metropolitan Bakersfield Florn Core, Water Resources Manager, stated Improvement District 4 (ID#4) is not receiving 100 percent of its State contract. The State Water Project is not complete and on a long term basis, contractors, such as the I.D#4 have been informed to expect approximately 65. percent of its contractual entitlement on average. The citizens expected 77,000 acre-feet annually when they voted for an improvement project back in the 70's. ID#4 along with the City is looking at additional supplies to make up the deficiency that's going to occur in the contract. There is water available on the market, but it is extremely expensive. ID#4 and City staff will continue exploring this topic. 4. Kern River Program Agreement Florn Core, Water Resources Manager, stated this is part of the bundle package, negotiations and agreements that we're working on and this revolves around the 40 acre piece of property at Stockdale Highway & Jewetta Dr. The property was purchased by the KCWA with state grant money and the property was quitclaimed to the City to be dedicated to groundwater recharge and/or recreational purposes. Staff of KCWA and City are working on a final agreement, based in part on a set of principles that was set-up four years ago. 5. Extension of 2800 Acres Agreement No. 84-232. Florn Core, Water Resources Manager, stated this is what we call a master spreading agreement that the Agency has to use the City's 2800 acres for spreading, banking, extraction of state water. We signed it back in 1984 it has a termination date of 2011. We are looking at extending this contract allowing the Agency to continue to spread and use our property on a second priority basis. The City has first priority. We're looking at extending that to the year 2040, which is towards the end of their state water contract. We are discussing the revised possible terms and conditions of this arrangement. It's worked pretty well in the past. 8. OLD BUSINESS A. Domestic Water Mainline Extension Refund Contract Re-Assignments; Florn Core, Water Resources Manager, stated these assignments are on contracts for installation of facilities under the domestic water system. Only the contract owners have changed and it does not increase or decrease the amount of obligation for the payback for the facilities. NO ACTION TAKEN. Bakersfield, California, May 17, 2006 - Page 5 9. NEW BUSINESS A. Land Exchange and Water Development Agreement betWeen Castle & Cooke, Bolthouse Properties, Kern County Water Agency and City. Motion by Hanson to approve Agreement No. 06-09WB and recommend to City Council for approval APPROVED, ALL AYES B. Design Engineering and Construction Agreement with California Water Service Company. Motion by Scrivner to approve Agreement No. 06-10WB and recommend to City Council for approval APPROVED, ALL AYES C. Resolution Requesting the United States Army Corps of Engineers to Expedite Action Concerning Isabella Dam & Reservoir. Motion by Hanson to approve the resolution and recommend to City Council for approval APPROVED, ALL A YES D. Water Supply Assessment for Ashe #4 Annexation Development Project. Motion by Scrivner to approve. APPROVED, ALL AYES E. Ditch Eradication Agreemeni with LO Land Asset, LP. Motion by Hanson to approve Agreement No. 06-1IWB and recommend to City Council for approval APPROVED, ALL AYES F. License Agreement with Kern County Water Agency for Northwest Pipeline, Turnouts and Controls within One Ditch Canal and Coffee Road Motion by Scrivner to approve Agreement No. 06-?2WB and recommend to City Council for approval APPROVED, ALL AYES 10. WATER BOARD STATEMENTS None. 11. ADJOURNMENT Chairman Couch adjourned the meetingat 3:12 p.m. David Couch, Chairman City of Bakersfield Water Board Bobbie Zaragoza, Secretary City of Bakersfield Water Board Water Board Special Meeting July 20, 2006 6. REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Information KERN RIVER NATURAL FLOW, REGULATED FLOW, & ISABELLA RESERVOIR STORAGE 2005 - 2006 WATER YEAR 7500 600,000 12608.25 Ft.) 7000 550,000 Isabella Storage Natural Flow 2603.91 Ft,) 500,000 6000 2599,38 Ft.) 450,000 5500 ........ , · " *!l ~ 2594.62 Ft,) __~::~ C3 5000 ............................................ ~- -- ~ . 400,000 8 45oo --%- '" 350,000 o3 Regulated Flow 2584.27 ~ 4000 ~/ -~ ........... 300,000 3500 - - - ................... 2578.53 Ft.)~,~ u. ~'t 250,000 rO 3000 ..................... · ................. I .: 'J _~572.24 Ft.) O 2500 ................... 200,000 2565.18 Ft.),~: ~oo ~" ............ , ~ ...... -/'~i -1~7 ................... 15o,ooo 1500 -i~I~- ............. !! ......!'~' ....................... ! i II 100,000 1000 I: .... ,7 - - '~ Normal ,~ Isabella Storage .. 500 50,000 0 ' 0 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr'06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 7.13-06 ISABELLA RESERVOIR DALLY OPERATIONS REPORT (All readings are for date of report (THURSDAY) as of o001, except as noted.., cfs in italics) Date of Report: July 13, 2006 ISABELLA RESERVOIR 1 2584.81 Lake Elevation (ft.) 354927 Storage (AcFt) -1553 Change (AcFt) 1659 Inflow to Isabella (cfs) 2 568075 Storage Capacity 62% % of Capacity 290504 Normal Storage 122% % of Normal Storage For this Date 3 9130 Average Lake Area (Acres) 48958 Inflow (Month AcFt) 71165 Outflow (Month AcFt) 4 1536 North Fork Mean 1402 North Fork @ 0600 Hours 934255 Accumulative Inflow (2006 Water Year) 5 2277 Mean Outflow 550 Borel Canal 1727 Main Dam Outlet 851356 Accum. Outflow (WY) 6 2259 Outflow @ 0600 548 Borel Canal @ 0600 Hours 1711 Main Dam Outlet @ 0600 Hours Hours 7 165 Lake Evap. (cfs) 0.56 Inches Evap. for 24 Hours 3320 Lake Evap. (Month AcFt to Date) 8 0 Spillway Discharge for 24 Hours 72 South Fork near Onyx @ 0600 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 12.44 Seasonal Precip. Isabella 9.72 Normal for 128% Isabella Precip. (Season: Oct 1 through Sep 30) this Date % of Normal 0.00 Inches of Precipitation at Pascoe for 24 Hours 0.20 Inches of Precipitation at Pascoe for Month 12 41.10 Seasonal Precip. Pascoe 34.66 Normal for 119% Pascoe Precip. this Date % of Normal 13 0.0 Upper Tyndall Creek 0.0 Pascoe 0.0 Wet Meadow 14 93 Isabella Maximum Temperature 0.45 Isabella Max. Precip. on Record For this Date 1984 Year of Occurrence 15 70 Isabella Minimum Temperature 120 24 Hour Wind Movement (Miles) NATURAL RIVER FLOW 16 1776 Natural Flow (cfs) 51209 Natural Flow (Month to Date) 734212 2006 Apr-Jul Runoff 17 1231 Mean Flow 144% Natural Flow 819 Median Flow 217% Natural Flow For this Date in % of Mean For this Date in % of Median 18 7072 Max. on Record 134 Min. on Record 969623 Accum. Natural Flow (Water Year) 19 1906 Year of Occurrence 1931 Year of Occurrence 20 2444 First Point Flow 73416 First Point (Month to Date) 886821 Accum. First Point (Water Year) KERN RIVER FACTS & FIGURES: ~ this date in 1984, thunderstorms rolled into the Isabella Lake area, leaving .45" of precipitation at headquarters. The unusual storm activity culminated on July 16, 1984 when .88" of rain was Produced by City of Bakersfield measured at Isabella, California, the maximum 24-hour precipitation amount ever recorded during the Water Resources Department month of July. For the month of July 1984, a record 2.01" of rain was reported at the Isabella project. (661) 326-3715 Water Board Special Meeting July 20, 2006 9. NEW BUSINESS A. Cost Sharing Agreement with Kern River Interests for Expert Advice and Technical Information Regarding the Restriction on Use of Isabella Reservoir Storage Space - For Board Approval KERN RIVER INTERESTS COST SHARING AGREEMENT FOR, COSTS RELATING TO UNITED STATES ARMY CORPS OF ENGINEERS RESTRICTIONS ON USE OF ISABELLA RESERVOIR CONSERVATION STORAGE SPACE THIS AGREEMENT, made on August 1, 2006, is entered into by and between those California public agencies holding all right, title and interest in and to the conservation storage space at Isabella Dam and Reservoir, namely: BUENA VISTA WATER STORAGE DISTRICT, CITY OF BAKERSFIELD, KERN COUNTY WATER AGENCY, KERN DELTA WATER DISTRICT, and NORTH KERN WATER STORAGE DISTRICT. These public agencies are sometimes referred to herein collectively as "Parties" RECITALS WHEREAS, the Parties are signatory, successor in interest, or otherwise interested parties to that certain contract and agreement dated October 23, 1964, entitled "Contract Among the United States of America and North Kern Water Storage District, Buena Vista Water Storage District, Tulare Lake Basin Water Storage District, and Hacienda Water District," and are vitally interested in maintaining all right, title and interest to the conservation storage in Isabella Reservoir; and WHEREAS, on April 20, 2006 the United States Army Corps of Engineers ("Corps") convened a Seepage Advisory Panel for the purpose of evaluating information regarding a seepage condition at the Isabella Auxiliary dam, and to make recommendations for short-term measures to address the seepage situation; and WHEREAS, on April 27, 2006 the Corps, acting upon technical advice of the Corps Dam -1- Safety Committee, declared an emergency deviation and by letter dated April 28, 2006 took over from the Kern River Watermaster the process of operating the storage and release of water at Isabella Dam and Reservoir, including ordering the restriction of storage; and WHEREAS, on June 26, 2006 control of operating storage and release of water at Isabella Dam and Reservoir was returned to the Kern River Watermaster; and WHEREAS, as a result of the ordered restriction on storage at Isabella Dam and Reservoir a substantial quantity of Kern, San Joaquin, Kaweah, Tule and other water, utilized for irrigation and replenishing the groundwater basin in the San Joaquin Valley portion of Kern County for future beneficial uses, was diverted into the Intertie and California Aqueduct and forever lost to the region; and WHEREAS, the Corps has indicated that it intends to conduct further investigation, monitoring, study and planning to develop both short and long-term plans concerning seepage at Auxiliary dam and related seismic and spillway issues associated with Isabella Dam and Reservoir ("Structural Investigations"); and WHEREAS, the Corps has indicated that until the Structural Investigations are complete it anticipates that the restriction on full storage at Isabella Dmn and Reservoir will continue; and WHEREAS, the Parties have determined it necessary that the Corps commit all necessary resources (financial, manpower, time, etc.) and take all necessary action to minimize to the fullest extent possible, consistent with the public safety, the extent and duration of any operation restriction at Isabella Dam and Reservoir; and WHEREAS, the Parties have determined that it is imperative that certain expert consultants -2- be retained to advise the Parties on issues regarding Isabella Dam and Reservoir and to ensure that the Corps complete the necessary Structural Investigations expeditiously and with the least impact on Isabella Dam and Reservoir operations. AGREEMENT NOW, THEREFORE, it is agreed by and between the Parties as follows: 1. Purpose: a. Scope: This Agreement provides the terms for the sharing of specified costs relating to obtaining necessary expert advice and technical information from certain consultants qualified to assist the Parties in expediting the completion of the Structural Investigations initiated by the Corps. The objective of this Agreement is to facilitate the Parties goal to minimize the restriction in the operation of Isabella Dam and Reservoir during the pendency of the Structural Investigations. 2. Consultants: a. Engineering: An expert engineer qualified to advise the Parties with regard to technical issues relating to seismology, hydrology, seepage, dam safety, Corps rules, regulations and procedures, and other matters as determined by the Committee will be selected and retained by legal counsel for the Watermaster on behalf of the Parties. b. Governmental Relations: An expert in government relations qualified to advise the Parties with regard to Corps rules and regulations, legislation, and Congressional funding and -3- appropriations, and other matters as determined by the Committee will be selected and retained by legal counsel for the Watermaster on behalf of the Parties. c. Legal: An attorney to advise the Parties with regard to various legal matters concerning Isabella Dam and Reservoir, including but not limited to the Corps restrictions on use of the conservation storage space, and additional issues. d. Other: Such other experts qualified to advise the Parties on additional matters as determined by the Committee necessary to achieving the purpose of this Agreement will be addressed as necessary by the Parties. e. Procedure: Any proposal to retain or terminate a specific expert advisor ("Consultant") shall be decided by the Parties following recommendation by the Committee. 3. Managers Committee: a. Ad Hoc Committee: The Parties agree to form an ad hoc committee composed of the Kern River Watermaster, and one representative from Buena Vista Water Storage District, City of Bakersfield, Kern County Water Agency, Kern Delta Water District and North Kern Water Storage District. In addition, each member shall designate an alternate to serve in the event its representative is unable to participate in the work of the Committee. The Watermaster shall serve as the chairman of the Committee and provide prior written notice to the members of the Committee of the meetings. b. Committee Responsibilities: The Committee shall have the following responsibilities: 1) recommend to the Parties that certain Consultants be retained; 2) Prepare and -4- recommend to the Parties appropriate written consultation agreements; 3) determine the appropriate scope of work and budget of any Consultant; 4) supervise all work of the Consultants; 5) review and approve payment of Consultant invoices; and 6) make other reports and recommendations to the Parties as appropriate. The Committee shall endeavor to reach a consensus on all decisions, but in the event a unanimous decision is not possible, a majority vote of the Committee (exclusive of the Watermaster who is a non-voting member of the Committee) is sufficient.' c. Trust Account: The Watermaster shall establish a designated trust account ("Account") for the purpose of paying the shared costs authorized by this Agreement. The Watermaster shall direct payment, in the manner and amount determined and approved by the Committee, from the Account in order to make timely payment of the shared fees, costs and expenses of the Consultants. d. Procedures: The Watermaster shall promptly provide a copy of all Consultant invoices covered by this Agreement to each member of the Committee and schedule a telephone conference in order for each Committee member to promptly review the invoices and notify the Watermaster of his/her approval, disapproval or recommended adjustment to a Consultant invoice. In a timely manner, the Committee shall review and approve, as it deems appropriate, and direct payment of the Consultant invoices. e. Funding: The Parties will allocate and transfer to the Account on or before August 1, 2006, in the percentages specified in subparagraph 3(0(1) of the Agreement, seventy-five thousand dollars ($75,000.00) to fund the initial work of the Consultants. The Watermaster shall -5- notify the Parties, as the Committee determines appropriate, when it is necessary that the Parties allocate and transfer to the Account additional monies, up to the authorized funding limit stated in Paragraph 3(f)(2), in order to maintain a balance in the Account sufficient to pay the necessary and proper fees, costs and expenses of the Consultants. f. Cost Sharing: 1. Funding Contributions: The initial funding of the Account, periodic replenishment of funds to the Account, and payment of all fees, costs and expenses of the Consultants approved by the Committee, shall be allocated as between the Parties as follows: Buena Vista Water Storage District -- 32% City of Bakersfield -- 14% Kern County Water Agency -- 12% Kern Delta Water District -- 14% North Kern Water Storage District -- 28% 2. Funding Limit: The total cost sharing authorized by the Parties pursuant to this Agreement shall not exceed two-hundred thousand dollars ($200,000.00) absent the prior written consent of all the Parties. Any funds remaining in the Account at the expiration of this Agreement shall be promptly refunded to the Parties in proportion to the contributions made pursuant to Paragraph 3(0(1). 4. Term: -6- a. Term: This Agreement shall become effective on the first day of August, 2006 provided all Parties have executed this Agreement on or before that date. Once effective this Agreement shall continue in full force and effect for one (1) year following the effective date of the Agreement, unless renewed in writing by all of the Parties. 5. Miscellaneous: a. Notices: Written notices to Parties hereunder shall be sufficient if delivered to the principal office of the respective Party. b. Amendments: This Agreement may be amended, or renewed, in writing at any time and from time to time by unanimous consent of all of the Parties. c. Complete Agreement: The foregoing constitutes the full and complete Agreement of the Parties. There are no oral understandings or agreements concerning the subject matter of this Agreement not set forth in writing herein. d. Severability: Should any part, term or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any applicable Federal law or any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions hereof shall not be affected thereby. e. Multiple Originals: This Agreement may be executed in counterparts, each of which shall be deemed an original. f. Water And Contractual Rights Not Affected: No right of any of the Parties in or to any of the waters of Kern River is intended to be, or shall be, or is, by the terms hereof, -7- transferred, granted or conveyed to any other party to this Agreement. This Agreement does not and shall not vary, modify, limit, waive or abandon any right or rights, whether arising by law or contract, of any of the Parties hereto in or to Isabella Reservoir storage or the flow or flows of the waters of Kern River, or any part thereof. This Agreement shall not be construed as granting or conferring any right or rights in or to the waters of Kern River. g. Precedent: The terms and conditions of this Agreement do not constitute and shall not be construed to be any form of precedent with regard to any future agreement among the Parties with regard to a Kern River Association or any other subject. All Parties expressly reserve all claims, rights and interests with regard to any such subjects and future agreements. IN WITNESS WHEREOF, the Parties have executed this Agreement the day and year first above written. Buena Vista Water Storage District Kern Delta Water District By By City of Bakersfield North Kern Water Storage District By By Kern County Water Agency By -8- Water Board Special Meeting July 20, 2006 9. NEW BUSINESS continued B. Annexation Agreement with Rosedale Rio-Bravo Water Storage District- For Board Approval and Recommendation to City Council ANNEXATION AGREEMENT This Agreement is made and entered into this __ day of ., 2006 by and between ROSEDALE-RIO BRAVO WATER STORAGE DISTRICT, a public Agency ("District" herein), and CITY OF BAKERSFIELD, a municipal corporation ("City" herein, each agreeing as follows: 1. District is the owner of that certain real property situated in the County of Kern, State of California described as follows: Assessor Parcel No.s 409-010-01,409- 010-04,409-020-16, and 409-020-35 ("District Property" herein). District Property is shown on the map attached hereto as Exhibit A and incorporated herein by this reference. District Property is improved with earthworks, facilities and structures to allow the same to be used for District purposes including, without limitation, surface water spreading for groundwater recharge. 2. The area surrounding District Property lies within the "sphere of influence" of City and is rapidly urbanizing. As urbanization occurs it is appropriate that these lands annex to the City since expansion of the boundaries of the City can best accommodate and provide necessary governmental services and housing for persons and families of all incomes in the most efficient manner feasible. Annexation of District Property into the boundaries of the City will facilitate annexation of the adjacent urbanizing property and, in so doing, will insure orderly development, discourage urban sprawl, preserve open-space lands, and more efficiently extend government services. 3. City has requested that District consent to the annexation of District Property into the boundaries of City. District consents to such annexation subject to the terms and provisions of this Agreement. 4. The annexation of District Property to the City ("Change of Organization" herein) will be initiated, conducted and completed in accordance with the procedures specified in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 [Division 3 (commencing with Section 56000) of Title 5 of the California Government Code]. The City shall be the "Proponent" of the Change of Organization as that term is defined in Government Code Section 56068. The City shall be solely and exclusively responsible for all fees, costs, charges, levies, and assessments arising out of or connected with the Change of Organization and shall defend and hold harmless the District of and from any and all liability with respect thereto. 5. The Change of Organization is intended to result in the annexation of District Property to the City but shall not result in a detachment of said District Property from the District, nor in any other change in boundaries or sphere of influence of the District. Neither shall the Change of Organization result in a merger of the City and District, in whole or in part, nor in the establishment of a subsidiary district. If and to the extent necessary, the City and District will execute a mutual .service agreement pursuant to Government Code Section 56117 providing that the city shall not, at any time during the continued existence of the District, initiate a proposal to establish the District as a subsidiary district of the city. 6. The Change of Organization shall be made expressly subject to the following: a. The Change of Organization shall not result in a change of land use zoning for District Property. b. The District Property shall not be or become subject to any taxes or assessments levied by the City, or by any governmental entity acting by, for or on behalf of the City. c. The City ordinance prohibiting exportation of groundwater from properties lying within the boundaries of the City, and any law, rule or regulation supportive thereof or substituted therefor, shall not apply to District Property and/or any property within the boundaries of the District. d. The City currently sells to the District so-called "Miscellaneous Quantity Water" as and when available pursuant to that certain agreement dated August 31, 1961 and entitled "Kern River Water Service Agreement", as amended by that certain agreement dated June 6, 1976, and entitled "Agreement No. 76-80 - Agreement Amending The Kern River Water Service Agreement Dated August 31, 1961 To Provide For The Long- Term Sale And Delivery Of Kern River Water". In order to maintain the long-term water supply of urbanized lands situated within the boundaries of the District, as well as improve and enhance the operational flexibility of the District, the agreement shall be amended as necessary to insure the following: (1) continued and undiminished availability of Miscellaneous Quantity Water to District beyond 2012 [see section 2.1(i)(2)] -City will agree to continue deliveries to District in order to meet the water service demands of those lands that are within the City limits, current or future annexed. Service demand would be the amount of water needed to balance the water supply of such incorporated lands. District would allocate a pro rata share (based on acreage) of its SWP, federal and City "Basic Contract" allocations first, then apply the City Miscellaneous water requirement. CitY and District would jointly determine annual water supply needs using generally acceptable practices in determining water supply demands. Any water removed from the District by the City will be replaced by the City. (2) fixing the cost of all Miscellaneous Quantity Water per terms of the current contract [see section 2.1(i)(9)] -the present pricing structure will be continued. (3) amendment of the provisions restricting delivery and use of Miscellaneous Quantity Water to and within the boundaries of District [see section 2.1(i)(3) and section 2.1(i)(8)(aa)] to allow the same to be recharged or banked by District in other projects such as the Pioneer Project - City water delivered to other banking or spreading projects, such as the Pioneer Project, to be used solely for spreading, percolating or groundwater recharge to accomplish the following, in priority: (a) meeting water supply balance of lands within the City limits in District; (b) groundwater overdraft correction of District; (c) general groundwater overdraft correction of the Kern County portion of the San Joaquin Valley basin. District shall not use any City Miscellaneous Quantity water spread or recharged for any other purpose than those set forth above. District shall not directly, indirectly, by transfer or exchange or through any agent or assignee use City Miscellaneous Quantity water for any other purpose. or use. (4) creating in favor of the District a priority right to recharge or bank Miscellaneous Quantity Water in the City's 2800 acre spreading facilities if District facilities are full and space is available in the City's facilities after meeting all City requirements for itself and third parties with contractual rights preceding the date of this agreement. e. During any year in which "high flow" Kern River water is available (e.g., any year in which all of the demands of all of the Kern River Interests, including the City, have been met and, in addition thereto, the United States Army Corps of Engineers declares a mandatory release of water from Isabella Reservoir, or the Kern River Watermaster offers Kern River water to the Kern River/California Aqueduct Intertie, or agricultural lands are subject to flooding in Buena Vista Lake, or the Kern River Flood Channel is operating and Kern River water is flowing past Highway 46), the City will deliver such Kern River Watermaster "high flow" water to District at agreed rates of flow for District's diversion and use. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written. "CITY" "DISTRICT" CITY OF BAKERSFIELD ROSEDALE-RIO BRAVO WATER STORAGE DISTRICT HARVEY L. HALL P~,NTNAME: Mayor Title: President APPROVED AS TO FORM: VIRGINIA GENNARO By: Janice Scanlan Title: Secretary Assistant City Attorney APPROVED AS TO CONTENT: WATER RESOURCES DEPARTMENT By: FLORN CORE Water Resources Manager COUNTERSIGNED: By: NELSON SMITH Finance Director NW COP. SEC 35 /---NE COP. SEC 35 T29S/R26E-~ __ ~ BRIMHALL RD---,,~__ ~]~// T29S/R26E I 400-020-35 --~ m 409-020-16 ENTER ~ SEC. 35 i i SW COP. SEC ~ STOCKDALE H~ SE COP. SEC 35 T29S/R26E T29S/R26E ~ ~ NTS ~ ROSEDALE - RIO B~VO WSD PROJECT NO. ~ ~ [ ~ ~' ~ ~ 15802.05 A ~' ~ ~ ""~'~ DISTRICT PROPER~ Water Board Special Meeting July 20, 2006 9. NEW BUSINESS continued C. Agreement between Chevron U.S.A., Kern Delta Water District and City for Use of Carrier Canal System - For Board Approval AMENDED AGREEMENT NO. 05-16WB AGREEMENT FOR DISCHARGE OF OIILFIELD WASTEWATER INTO THE CARRIER CANAL SYSTEM THIS AGREEMENT is made and entered on, between and among THE CITY OF BAKERSFIELD, a California charter CITY and municipal corporation ("CITY"), KERN DELTA WATER DISTRICT, a California water district ("KERN DELTA") and CHEVRON U.S.A., INC., a Pennsylvania corporation authorized to conduct business in California ("CHEVRON") for the discharge of reclaimed petroleum industry produced water ("oilfield reclaimed water") in the CARRIER CANAL ("Carrier"). RECITALS WHEREAS, CITY, pursuant to Paragraph 17 of the January 12, 2005 Agreement No. 05-006 "AGREEMENT FOR DISCHARGE OF OILFIELD WASTEWATER INTO THE BEARDSLEY-LERDO CANAL SYSTEM", will provide written notice to CHEVRON of its intent to terminate said agreement at such time as the Water Treatment Plant, further described herein, is within thirty days of start-up. Such termination is necessitated by the City's desire to convey its Kern River water through the Beardsley Canal and No. 4 Lateral to a new domestic Water Treatment Plant located westerly of the Beardsley Canal near the intersection of Norris Road and Coffee Road; and WHEREAS, CHEVRON owns and operates water processing facilities in the Kern River oilfield of Kern County, California, in Section 5, Township 29 South, Range 28 East, M.D.B. & M.,.wherein water produced from oil recovery operations located in said oilfield are processed and reclaimed; and WHEREAS, Oilfield operations use less than all of the water processed and reclaimed at said water processing facilities and a surplus of said reclaimed water exists; and WHEREAS, CHEVRON plans to construct a new pipeline to convey processed and reclaimed water out of the area by April 1, 2007; and WHEREAS, The Carrier Canal is owned by CITY and KERN DELTA. CITY operates Carrier on behalf of itself and KERN DELTA for the transport of CITY, KERN DELTA and other waters; and, WHEREAS, during the planning and construction of said pipeline, CITY and KERN DELTA are willing to permit CHEVRON to discharge said oilfield reclaimed waters on a daily basis into the Carrier up to April 1, 2007 during periods when CHEVRON cannot discharge to the Beardsley-Lerdo Canal System; and WHEREAS, subsequent to April 1, 2007, CITY and KERN DELTA are willing to permit CHEVRON to temporarily discharge during periods of emergency said oilfield reclaimed waters surplus to CHEVRON's needs into Carrier subject to cedain conditions; and WHEREAS, CHEVRON as successor-in-interest to Texaco and Getty Oil Co.., and CITY have an existing agreement (CITY Contract No. 77-3 between Getty Oil Company and CITY of Bakersfield) under which CHEVRON can temporarily discharge oilfield reclaimed water into the Carrier Canal. A copy of said contract is on file at CITY place of business and CHEVRON place of business; and WHEREAS, CHEVRON has a National Pollution Discharge Elimination System (NPDES) Permits No. CA0078352 and No. CA0080853, (California Regional Water Quality Control Board (CRWQCB) Order Nos. R5-2002-0053 and R5-2002-0052 respectively ("NPDES Permits")) which requires sampling of the discharge and receiving water, limits the amount of discharge, and limits the downstream concentration of certain constituents in the discharge and the mix of the receiving water of Carrier. A copy of said NPDES Permits are on file at CITY place of business at KERN DELTA place of business and CHEVRON place of business; and WHEREAS, Including by reason of prohibitions in CHEVRON's NPDES Permit, discharges shall not raise the ambient temperature of the receiving water to increase more than 5 °F (as measured at NPDES monitoring Point R4) or to be altered to a degree that adversely affects beneficial uses; and WHEREAS, By reason of prohibitions in CHEVRON's NPDES Permits, certain structural and operational modifications of Carrier are necessary in order to insure compliance with said NPDES Permits; and WHEREAS, CITY has made certain structural, modifications to Carrier and developed a discharge management plan for administering operations during emergency periods of oilfield reclaimed water discharge to Carrier; and WHEREAS, CHEVRON desires to discharge reclaimed water into the Carrier Canal on an emergency limited time basis for up to three years; and NOW, THEREFORE, incorporating all the above recitals, CITY, KERN DELTA and CHEVRON mutually agree as follows: 1. CHEVRON shall construct and maintain, at its sole expense, all facilities necessary to transport and discharge its reclaimed water into the Carrier Canal system, which discharge point is mutually agreeable to all parties. 2. When reclaimed water is not allowed to be discharged by CHEVRON into the Beardsley-Lerdo Canal System and prior to April 1, 2007, The CITY and Kern Delta shall permit CHEVRON to discharge reclaimed water from its Kern River Field into the Carrier Canal System on a daily basis subject only to the restrictions contained herein or in CHEVRON's NPDES permits. Such discharge Page 2 of 9 shall be scheduled through CITY dispatch 24 hours in advance and at constant rates of flow. 3. From April 1, 2007 through March 31, 2009, CHEVRON may temporarily discharge into Carrier during such times as Chevron is performing maintenance on its new pipeline transporting its Kern River Water and during emergency periods (hereinafter "Maintenance Periods"), its reclaimed water for no more than a total of 480 hours per year, the year being the 12 month period from April 1 through March 31. For the period beginning April 1, 2009 and concluding on June 30 of that year, Chevron may discharge its reclaimed water for no more than a total of 60 hours. CHEVRON may temporarily discharge into Carrier during Maintenance Periods only. Discharge to be maintained at flows not to exceed those provided in CHEVRON's NPDES permits. If, at any time during the term of this Agreement, CHEVRON desires to discharge oilfield reclaimed waters to Carrier, then CHEVRON shall promptly notify CITY and KERN DELTA of such emergency by telephone, and note of the emergency shall be logged by the CITY Dispatcher, telephone 326-3716 and KERN DELTA Dispatcher, telephone 834- 4653. CHEVRON shall also be responsible to notify the CITY's Water Resources Superintendent (or designee) of the nature of the emergency prior to any such temporary discharge to Carrier. CHEVRON shall not discharge into Carrier System until acknowledged by CITY. 4. The flow of oilfield reclaimed water into Carrier during this Agreement period shall be coordinated with and verified through CITY Dispatcher, CITY Water Resources Superintendent (or designee) and CHEVRON. 5. The parties recognize that maintenance activities and emergencies may occur beyond the control of CITY, which may require the closing of the Carrier and the discontinuance of CHEVRON's ability to discharge to Carrier. CITY agrees also that it shall give CHEVRON as much notice as possible before closing Carrier for emergencies. In the case of emergencies arising from matters beyond the control of the CITY, CITY agrees to use its best reasonable effort to put Carder back in operation as soon as practical. CHEVRON shall be responsible for its surplus oilfield reclaimed waters during such periods as Carrier may be closed for emergencies. 6. If, in any period during discharge in Carrier, those flows in Carrier of Kern River water do not supply the required dilution to meet receiving water quality or temperature standards established by the NPDES Permits, then KERN DELTA agrees to provide Kern River water, if available to KERN DELTA, to enable CHEVRON to dilute and discharge its surplus oilfield reclaimed waters in Carrier, provided however that if KERN DELTA does not have adequate water supply available, CITY may, to the extent it desires, participate in providing water for dilution purposes. KERN DELTA shall have the first option to provide dilution water to CHEVRON the price being the same whether provided by CITY or KERN DELTA. This water supply is for dilution purposes only. The price to CHEVRON for such dilution water shall be $55.00 per acre-foot, or fraction thereof, subject to annual adjustment on the basis of the January 1999 Producer Page 3 of 9 Price Index for "All Commodities" published by the Bureau of Labor Statistics of the U.S. Department of Labor, which price index stood at 123.2. The adjusted price for 2006 is established at $73.48 per acre-foot. 7. The CITY shall coordinate maintenance period oilfield reclaimed water discharge operations and make such arrangements to Carrier flows as are necessary to prevent CHEVRON's discharged water from commingling with water being used as a raw water supply source for municipal use drinking water use. 8. It is expressly understood between the parties that CHEVRON has not dedicated, does not intend to dedicate and shall not be construed to have dedicated its water processing facilities, pipeline facility or any portion of water processed at said water processing facilities to public use, and that CHEVRON is not a public utility or common carrier. 9. If the oilfield reclaimed waters discharged to Carrier by CHEVRON do not meet the discharge requirements set forth in the NPDES Permits, CHEVRON will cease having the ability to discharge said oilfield waters to Carrier. If the oilfield waters .delivered hereunder by CHEVRON to Carrier cannot reasonably be economically processed to meet the NPDES water quality standards, CHEVRON shall cease delivering said oilfield waters to Carrier. CHEVRON shall at all times throughout the term of this Agreement have a qualified and competent Emergency Spill Response Team of staff or contractor available for immediate response to any oil spill, oil leakage or presence of oil of any kind in Carder and any canal system receiving water from the Carrier Canal resulting from or attributable to CHEVRON oilfield reclaimed water discharged to Carrier. 10. Except as provided for in the NPDES permits, CHEVRON agrees that it will immediately cease its discharge into the Carrier upon being presented evidence by CITY, KERN DELTA, the California Regional Water Quality Control Board, or any other federal, state or local agency with jurisdiction over the discharge water, that CHEVRON's oilfield reclaimed water contains any substance which is contained within any of the following definitions or lists, whether as currently drafted or as amended in the future: a. the definition of "extremely hazardous waste," as defined in section 25115 of the California Health and Safety Code; or b. the definition of "hazardous waste," as defined in section 25117 of the California Health and Safety Code; or c. the definition of "hazardous substance," as defined in section 25316 of the California Health and Safety Code; or d. any substance listed in the California Administrative Code, Title 22, Chapter 30, Article 9, Hazardous Wastes and Hazardous Materials, Page 4 of 9 section 66680 and Adicle II, Criteria For Identification of Hazardous and Extremely Hazardous Wastes, sections 66693-66746; or e. any other definition or list pursuant to any federal, state or local law, regulation or ordinance; and which substances or wastes in the receiving waters are in concentrations that are directly or indirectly deleterious to either plant, animal or human health. 11. CHEVRON shall at all times operate its facilities so that CHEVRON's reclaimed water: a. Does not cause the receiving water in the Carrier to exceed 0.5 mg/L of boron (as measured at NPDES monitoring point R4). CHEVRON agrees that when there is insufficient water in the Carrier to dilute CHEVRON's oilfield reclaimed water to 0.5 mg/L of boron, CHEVRON shall without hesitation, regardless of time or day, reduce the quantity of flow of its reclaimed water to a point at which the receiving water in the Carrier does not exceed 0.5 mg/L of boron. CHEVRON's reduction shall be according to the proportional reduction requirements specified in the Management Plan promulgated pursuant to NPDES permits CA0078352, Order No. R5 2002-0053 and CA0080853, Order No. R5 2002-0052 or as otherwise agreed to in writing by CITY and KERN DELTA; and b. Does not cause the receiving water in the Carrier to exceed 7.0 mg/L of free oil and grease (as measured at NPDES monitoring point R4). CITY agrees to cooperate with CHEVRON if CHEVRON desires to acquire other water supplies to facilitate the above blending provided that CHEVRON shall pay all cost associated with the acquisition of said water supplies and CHEVRON shall not purchase water supplies to accomplish such blending which may adversely affect CITY's, KERN DELTA's or others water supply in Carrier, costs, operation, or water management programs. 12. CHEVRON shall comply with each and every other federal, state or local water quality standard or provision pertaining to discharging oilfield reclaimed water into Carrier, whether in existence on the date this Agreement is executed or promulgated at any subsequent time, once such standard or provision becomes final and enforceable by the appropriate governmental agency. 13. CHEVRON shall pay to CITY $12,000 per year for costs incurred by CITY to administer its discharge management plan. Such discharge management ~lan shall include but not limited to, monitoring of the constituent level of CHEVRON's oilfield reclaimed water discharged in the Carrier, preparation of monthly and periodic hydrographic records of discharge and dilution waters and long-range forecasting and scheduling of Kern River Basin yield and Carrier operations. Page 5 of 9 14. CHEVRON agrees to pay CITY a service charge of $200.00 (two hundred dollars) per calendar day for each day CHEVRON discharges its oilfield reclaimed water to Carrier. 15. CHEVRON agrees to pay $35.56 (thirty-five dollars and fifty-six cents) per acre-foot of oilfield reclaimed water so discharged to Carrier with such fee directed to KERN DELTA through CITY. 16. For charges specified above, Paragraph's 14, 15 and 16, CHEVRON shall pay CITY within thirty (30) days of receiving invoice from CITY. 17. Nothing contained in this Agreement shall affect or change the rights or obligations regarding charges specified in Paragraph 6 of the January 3, 1977 Agreement between CHEVRON and CITY. 18. .'Nothing contained in this Agreement, nor any performance under this Agreement, shall affect or change the existing Kern River water rights held by CITY or KERN DELTA. Nothing shall effect or change CITY's and KERN DELTA's ability to store water either by surface reservoir or underground. 19. CHEVRON hereby surrenders all right to discharge any oilfield reclaimed water into the Carrier except as provided in this Agreement. 20. This Agreement shall terminate on June 30, 2009. This Agreement may be terminated by CITY after June 30, 2009 upon sixty (60) days written notice to the other parties so that water may be conveyed to a water treatment facility. Unless otherwise mutual!y agreed between the parties, upon termination of this Agreement, CHEVRON shall cease all discharges and within twelve (12) months thereafter remove all its discharge facilities from the Carrier Canal system and right-of-way and restore the premises without damaging existing canal facilities. CHEVRON shall assume all costs associated with the removal of its facilities and restoration of the premises. 21. Any notices, correspondence or requests to view documents on file shall be made at the following respective place of businesses: CITY: CITY of Bakersfield Water Resources Department 1000 Buena Vista Road Bakersfield, CA 93311 Telephone (661) 326-3715 CHEVRON: CHEVRON U.S.A. Inc. Station 36 Manager 1546 China Grade Loop Bakersfield, CA 93308 Telephone (661) 392-2221 Page 6 of 9 KERN DELTA: KERN DELTA Water District 501 Taft Highway Bakersfield, CA 93307 Telephone: (661) 834,4653 CITY, KERN DELTA and CHEVRON have developed a Notification List, which is more fully shown on Exhibit "A," attached hereto and incorporated herein by reference, to provide for 24-hour contact between the parties in case of initiation of oilfield discharge or emergency spill response for the performance of duties and obligations of the parties under this Agreement. 22. None of the rights or obligations of the parties under this Agreement shall be assigned or delegated by any party without the prior written consent of the other party. 23. In the event of any litigation between CITY, KERN DELTA and CHEVRON, in connection with the interpretation, performance or enforcement of this Agreement, the prevailing party in such litigation shall be entitled to be reimbursed by the other party thereto for all costs of litigation, including, but not limited to, court costs, time and expense of personnel, attorneys' fees, costs of experts and other costs of litigation. Provided, however, that the attorneys' and experts' fees to be reimbursed shall not exceed such amount as the court determines to be reasonable. 24. All parties are equally responsible for authorship of this Agreement and section 1654 of the Civil Code has no application to the interpretation of this Agreement. 25. The failure of any party to enforce against the other a provision of this Agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time. 26. This Agreement shall be binding on the parties and their successors and assigns; PROVIDED, HOWEVER, that CHEVRON shall not assign or otherwise transfer this Agreement or any of CHEVRON's rights hereunder, either voluntarily, involuntarily, or by operation of law, without the prior written consent of CITY, which consent shall not be unreasonably withheld, and any assignment or other transfer or attempted assignment or transfer contrary to the provisions of this Agreement shall be absolutely null and void and of no effect whatever. 27. This Agreement constitutes the entire agreement between the parties pertaining to the temporary discharge of CHEVRON's oilfield reclaimed water into Carrier and supersedes all prior and contemporaneous agreements and understandings, whether written or oral, not specifically referred to herein. 28. CHEVRON warrants that the reclaimed water discharged into the Carrier Canal system shall at all times comply with the water quality standards set forth in the NPDES Permits. CHEVRON agrees to defend, indemnify and hold Page 7 of 9 harmless KERN DELTA, CITY, their respective officers, agents and employees, and each of them, for any injury, damage, loss, liability, claim or causes of action, including, but not limited to, inverse condemnation, property damage, personal injury, death directly and proximately caused by CHEVRON discharging its reclaimed water into the Carrier Canal system and any canal system receiving water from the Carrier Canal. Provided, however, CHEVRON shall not be responsible for any injury, damage, loss or liability directly and proximately caused by the negligent or willful misconduct of either KERN DELTA, CITY or the water users of the Carrier Canal system, including but not limited to, any and all injury, damage, loss or liability directly and proximately caused by a water user of the Carder Canal system failing to add a salt correction material to their soil and/or water to counterbalance the higher salt load contained within CHEVRON's reclaimed water. KERN DELTA and/or CITY shall tender to CHEVRON the defense of any claims against them, or either of them, which come within the scope of this paragraph. Should CHEVRON accept the tender of defense, CHEVRON shall keep KERN DELTA and/or CITY apprised of all developments of any claim and shall confer with KERN DELTA and/or CITY prior to settling any claim. The attorneys' and experts' fees to be paid shall not exceed such amount as the coud in which the litigation occurs determines to be reasonable. CHEVRON assumes any duty or obligation which may result from another governmental agency imposing upon CITY or KERN DELTA a tax or assessment due to the degradation of the groundwater resulting from CHEVRON's reclaimed water, but CHEVRON reserves the right to litigate both the issue of failure to meet any such standards and the issue o legal justification for any such tax or assessment. 29. Ownership of discharged water and all water purchased or acquired by or on behalf of CHEVRON for discharge and/or blending purposes are relinquished and transferred to CITY and KERN DELTA (based on ratio of respective flows in Carrier), but only to the extent such water meets or exceeds the water quality standards as set forth in the NPDES Permits. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, the day and year first-above written. "CITY" "KERN DELTA" CITY OF BAKERSFIELD KERN DELTA WATER DISTRICT By:. By: HARVEY L. HALL Mayor Print Name: Title: MORE SIGNATURES ON FOLLOWING PAGE Page 8 of 9 "CITY" "KERN DELTA" CITY OF BAKERSFIELD KERN DELTA WATER DISTRICT (Continued) (Continued) APPROVED AS TO FORM: APPROVED AS TO FORM: VIRGINIA GENNARO By: CITY Attorney Print Name: By:~ Senior Counsel JANICE SCANLAN Assistant CITY Attorney "CHEVRON" CHEVRON U.S.A. INC. APPROVED AS TO CONTENT: By: WATER RESOURCES DEPARTMENT Print Name: By: Title: FLORN CORE Water Resources Manager APPROVED AS TO FORM: COUNTERSIGNED: By: JAMES S. TALBOT By: Senior Counsel NELSON SMITH Finance Director Page 9 of 9 Water Board Special Meeting July 20, 2006 11. CLOSED SESSION A. Conference with Legal Counsel -- Existing Litigation Closed session pursuant to subdivision (a) of Government Code section 54956.9. 1. North Kern Water Storage District vs. Kern Delta Water District, et al; Tulare County Superior Court Case No. 96-172919 5th Appellate District Court Case No. F047706; 2. City of Bakersfield v. Kern Delta Water District Kern County Superior Court Case No. S-1500-CV-258097-RJO ADMINISTRATIVE REPORT Water Resources MEETING DATE July 20, 2006 I AGENDA SECTION: Closed Session I ITEM: A. TO: Chairman Couch and Members of the Water Board APPROVED FROM: Florn Core, Water Resources Manager DEPARTMENT HEAD ~ DATE: July 17, 2006 CITY ATTORNEY SUBJECT: Conference with Legal Counsel -- Existing Litigation Closed session pursuant to subdivision (a) of Government Code section 54956.9. 1. North Kern Water Storage District vs. Kern Delta Water District, et al; Tulare County Superior Court Case No. 96-172919 5th Appellate District Court Case No. F047706; 2. City of Bakersfield v. Kern Delta Water District Kern County Superior Court Case No. S-1500-CV-258097-RJO RECOMMENDATION: Staff recommends a motion to adjourn to Closed Session to consider the above topic. BACKGROUND: bz July 17, 2006, 11:25AM S:~006 ADMIN REPORTS\WBJuly20.CS.doc