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Home My WebLink About07/13/05 City of Bakersfield Water Board Meeting ~ July 13, 2¢05 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 CITY OF BAKERSFIELD WATER BOARD SPECIAL MEETING Wednesday, July 13, 2005 - 12:00 p.m. (Noon) Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 AGENDA and NOTICE NOTICE is hereby given that the Regular meeting of the City of Bakersfield Water Board scheduled for July 13, 2005 at 2:00 p.m. has been changed to July 13, 2005 at 12:00 p.m. (Noon). 1. CALL MEETING TO ORDER 2. ROLL CALL 3. MINUTES A. Minutes of the May 18, 2005 meeting for approval - For Board Review and Action 4. PUBLIC STATEMENTS 5. KERN RIVER LEVEE DISTRICT A. Proposed Kern River Levee Extension for West Ming Specific Plan Project - For Board Information 6. REPORTS A. Kern River Operations Report - For Board Information 7. OLD BUSINESS A. Northwest Feeder Pipeline Project with Kern County Water Agency - For Board Information B. Kern Fan Power Project and PG& E Settlement Distribution - For Board Information WATER BOARD AGENDA PAGE 2 July 13, 2005 8. NEW BUSINESS A. Kern County Water Agency Banking Property Sphere of Influence - For Board Information B. Water Board Report No. 01-05 Regarding the Adequacy of City Water Supplies and Strategic Plan to Meet Future Water Needs - Staff Recommends Acceptance of Report and Forwarding to City Council C. Principles for Letter of Intent between Castle & Cooke, Bolthouse Properties, Kern County Water Agency and City - For Board Information 9. MISCELLANEOUS 10. WATER BOARD STATEMENTS 11. CLOSED SESSION A. Conference with Legal Counsel - Existing Litigation Closed Session pursuant subdivision (a) of Government Code section 54956.9 North Kern Water Storage District v. Kern Delta Water District - Tulare County Superior Court Case No. 96-172919 12. ADJOURNMENT Florn Core Water Resources Manager POSTED: July8~ 2005 S:\WB MINUTES 2005\WBAGENDAJuly1305.doc Water Board Meeting July 13, 2005 3. MINUTES A. Minutes of the May 18, 2005 meeting for approval - For Board Review and Action MINUTES OF THE REGULAR MEETING OF THE WATER BOARD - CITY OF BAKERSFIELD Wednesday, May 18, 2005 - 2:00 p.m. Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 1. CALL MEETING TO ORDER The meeting was called to order by Chairman Couch at 2:05 p.m. 2. ROLL CALL Present: Chairman Couch, Members Hanson(seated at 2:06 p.m.), Scrivner Absent: None 3. MINUTES A. Minutes of the regular meeting of March 16, 2005 for approval. Motion by Scrivner to approve the minutes. APPROVED, HANSON ABSENT 4. PUBLIC STATEMENTS None. 5. KERN RIVER LEVEE DISTRICT A. Tree Planting Project along Bike Path between Coffee Road and Don Hart West Drive. Mark Lambert, Water Resources Superintendent, gave a brief update. No action taken. Member Hanson was seated at 2:06 p.m. 6. REPORTS A. Kern River Operations Report Steve Lafond, Hydrographic Supervisor, gave a brief update and stated the City of Bakersfield has an adequate water supply from the Kern River. This will be the first time in seven years we will be able to meet the full maximum delivery schedules to basic contractors. No action taken. B. 2005 Kern River Parkway Recreational Season Flow Program. Steve Lafond, Hydrographic Supervisor, gave a brief update and stated the Kern River should be flowing from bank to bank at Beach Park through September and cautioned that the public should be aware of the higher flows. Chairperson Couch asked if "Keep Out" signs will be posted along the river. Bakersfield, California, May 18, 2005 - Page 2 6. REPORTS continued B. City Attorney, Virginia Gennaro, responded stating the legal advice given before has been to leave it as it is because it's a natural resource. City Attorney Gennaro will review the legal aspect regarding posting signs. 7. OLD BUSINESS ~ A. Domestic Water Mainline Extension Refund contract re-assignments. Florn Core, Water Resources Manager, gave a brief update. No action taken. B. Northwest Feeder Pipeline Project with Kern County Water Agency. FIorn Core, Water Resources Manager, gave a brief update. No action taken. 8. NEW BUSINESS A. Amendment No. 1 to Agreement No. 03-203 with California Water Service Company for construction and operation of Water Filtration Plant at Norris and Coffee Roads. Motion by Hanson to approve Amendment No. I to Agreement No. 03-203 with California Water Service Company and recommend to the City Council for approval APPROVE, ALL A YES B. Temporary Service Agreement with ChevronTexaco Exploration and Production for use of Carrier Canal. Motion by Couch to authorize staff to sign a Temporary Service Agreement No. 05-16WB with ChevronTexaco Exploration. APPROVED, ALL A YES C. Authorization for City Participation with Kern River Watermaster to Intervene in Southern California Edison Co.'s Borel Powerplant Relicensing. Motion by Hanson to authorize staff to participate in the Kern River Watermaster intervention action and authorized funds not to exceed $4,000 as the City's contribution for such action. APPROVED, ALL A YES D. City of Bakersfield Domestic Water Division Proposed 2005-06 Rate Schedule. Maurice Randall, Water Resources Business Manager, gave a brief update and answered questions. A public hearing is scheduled before the City Council on June 22, 2005. Motion by Hanson to approve the Proposed 2005-06 Rate Increase and recommend to the City Council for approval APPROVED, ALL A YES ~, Bakersfield, California, May 18, 2005 - Page 3 10. WATER BOARD STATEMENTS None. 11. CLOSED SESSION Motion by Couch to recess to Closed Session at 2:33 p,m. A. Conference with Legal Counsel - Potential Initiation of Litigation Closed Session pursuant to subdivision c. of Government Code section 54956.9 - One Case B. Conference with Legal Counsel - Existing Litigation Closed Session pursuant to Government Code section 54956.9 North Kern Water Storage District v. Kern Delta Water District - Tulare County Superior Court Case No. 96-172919 Motion by Couch to adjourn from Closed Session at 3:30 p,m, Chairperson Couch stated there was no reportable action in Closed Session. 12. ADJOURNMENT Motion by Couch to adjourn the meeting at 3:31p. m. David Couch, Chairman Bobbie Zaragoza, Secretary City of Bakersfield Water Board City of Bakersfield Water Board Water Board Meeting July 13, 2005 5. KERN RIVER LEVEE DISTRICT A. Proposed Kern River Levee Extension for West Ming Specific Plan Project - For Board Information Kern River Levee Extension West Ming Specific Plan Project C~oss Valley Canal ' ; fl ~. :, .' *~ ~ Future Ming Ave. 5~-', - . ,-. , ";>, ., ~: · Water Board Meeting July 13, 2005 6. REPORTS A. Kern River Operations Report - For Board Information KERN RIVER NATURAL FLOW, REGULATED FLOW, & ISABELLA RESERVOIR STORAGE 2004 - 2005 WATER YEAR 7500 .~ . ,~ .,.. ~ 600,000 .~ 2608,25 Ft.) 7000 - 550,000 .... " .~' ~-: ' ~'~ r" ' ~': 2603.9t Ft.) 6500 ....... 6000 '~ ~ '~ ' - .... ~ Natural Flow' ~1 , '. .~___~.. ' " · ~ .' 500,000 .. 5500 5000 ....... : _ · ' ~ . ' ¢,: ~ ~ ., 2004-2005 ~.~ Ft.)~ 4500 4000 . . .--~ ...... 2000 1500 '? ' '~ " ~ ~' '"' ' ~' ' // .... ...... * ' ~______100,000 Oct-04 Nov-04 D~-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sop-05 7-7-~ ISABELLA RESERVOIR DALLY OPERATIONS REPORT (All readings are for date of report (WEDNESDAY) as of oo01, except as noted.., cfs in italics) Date of Report: July 6, 2005 ISABELLA RESERVOIR 1 2601.90 Lake Elevation (ft.) 527558 Storage (AcFt) - 1215 Change (AcFt) 2820 Inflow to Isabella (cfs) 2 568075 Storage Capacity 93% % of Capacity 295067 Normal Storage 179% % of Normal Storage For this Date 3 11062 Average Lake Area (Acres) 31184 Inflow (Month AcFt) 30678 Outflow (Month AcFt) 4 2762 North Fork Mean 2701 North Fork @ 0600 Hours 926247 Accumulative Inflow (2005 WaterYear) 5 3244 Mean Outflow 567 Borel Canal 2677 Main Dam Outlet 473485 Accum. Outflow (WY) 6 3284 Outflow @ 0600 565 Borel Canal @ 0600 Hours 2719 Main Dam Outlet @ 0600 Hours Hours 7 189 Lake Evap. (cfs) 0.53 Inches Evap. for 24 Hours 1833 Lake Evap. (Month AcFt to Date) 8 0 Spillway Discharge for 24 Hours 128 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 15.56 Seasonal Precip. Isabella 9.70 Normal for 160% Isabella Precip. ~' (Season: Oct 1 through Sep 30) this Date % of Normal 11 0.00 Inches of Precipitation at Pascoe for 24 Hours 0.00 Inches of Precipitation at Pascoe for Month 12 51.40 Seasonal Precip. Pascoe 34.60 Normal for 149% Pascoe Precip. this Date % of Normal 13 0.0 Upper Tyndall Creek 0.0 Pascoe 0.0 Wet Meadow 14 92 Isabella Maximum Temperature 0.21 Isabella Max. Precip. on Record For this Date 2001 Year of Occurrence 15 69 Isabella Minimum Temperature 97 24 HourWind Movement (Miles) NATURAL RIVER FLOW 16 2926 Natural Flow (cfs) 32247 Natural Flow (Month to Date) 689775 2005 Apr-Jul Runoff 17 1507 Mean Flow 194% Natural Flow 1020 Median Flow 287% Natural Flow For this Date in % of Mean For this Date in % of Median 18 8129 Max. on Record 160 Min. on Record 916771 Accum. Natural Flow (Water Year) 19 1906 Year of Occurrence 1924 Year of Occurrence 20 3406 First Point Flow 31741 First Point (Month to Date) 496351 Accum. First Point (Water Year) ' IRN RIVER FACTS & FIGURES: B A K ~ , s ~ ~ ~ ~'"D On this date in 1983, Isabella Reservoir surface elevation topped out at 2610.84 feet. Reservoir Produced by Cib/ of Bakersfield storage increased by 120 acre-feet from the previous day, pushing total storage to 630,825 Water Resources AcFt, maximum level in the history of Lake Isabella. Isabella spillway discharge was 5, 721 cfs. (661) 326-3715 KERN RIVER 2005 HIGHLIGHTS Kern River April-July Runoff [approx.)= 750,000 AcFt [161% of Normal) .18th largest snow melt yield over the last 112 years of Kern River flow records *Greatest spring runoff since 1998 Maximum ~sabella Reservoir storage= 538,557 AcFt (95% of capacity) *Highest storage level reached since July of 1998 '10th occasion in 52-year history of Isabella Reservoir storage topped the 500,000 AcFt level Kern River Annual Flow at Bakersfield (approx.)= 900,000 AcFt *Maximum outflow from Lake Isabella (through July 6) of 3,569 cubic feet per second *Flow at Beach Park reaches peak of 1,750 cubic feet per second on June 20th Kern River Parkway Recharge Program (approx.)= 50,000 AcFt *Maximum amount of combined City of Bakersfield/Kern County Water Agency (ID4) recharge since inception of the Kern River Parkway Water Management Agreement 2800 Acre Water Bank - Recharge Operations (approx.)= ] 25,000 AcFt *Ongoing recharge operations since January 20th *City to bank over 20,000 AcFt of its Kem River supply this year 5O TEMPIrRFITUR£ OU'[LOOK ~ 5,5 HO LL SERSONRL VRLTD: DJF 2005 MRDE: 16 JUN 2005 _ z0 ~ NATIONAL OCEANIC and ATMOSPHERIC ADMINISTRATION CLIMATE PREDICTION CENTER TEMPERATURE OUTLOOK - WINTER 2805-06 Water Board Meeting July 13, 2005 7. OLD BUSINESS A. Northwest Feeder Pipeline Project with Kern County Water Agency - For Board Information Water Board Meeting July 13, 2005 7. OLD BUSINESS continued B. Kern Fan Power Project and PG& E Settlement Distribution - For Board Information ' KERNWATERBANKAUTHORITY June 1, 2005 Mr. Flom Core Water Resources Manager City of Bakersfield 1000 Buena Vista Road Bakersfield, CA 93311 Subject: PG&E Settlement Distribution Dear Mr. Core: The Kern Water Bank Authority and Kern County Water Agency have negotiated a settlement with PG&E regarding the Kern Fan Power Project. The project was underway, with both engineering and some construction tasks completed, when the California energy crisis, PG&E's bankruptcy, and changes in electric rate structures made the project untenable. The attached settlement refunds 100% of the funds either invested by you or invested on your behalf by the Pioneer Project and/or the Berrenda Mesa Project in the Kern Fan Power project. These funds include all construction costs on both projects and Kern Fan Power Project engineering (see attached table). Please let me know if you have any questions. Sincerely, '-'Jonathan D. Parker,/ex_/ General Manager cc: Rick Iger, KCWA Attachments (Settlement check) Post Office Box 80607 I Bakersfield, California 93380-0607 I Phone 661-399-8735 Fax 661-399-9751 i Power Pro ;ettlement Distribution ~ i nse$ Pioneer Construction $ 397,597 ,i: Berrenda Mesa Construction $ 122,729 Subtotal $ 520,326 KFPP Engineering $ 189,779 Total y Entity Belridge WD Kern Fan Power Project Engineering Share Berrenda Mesa Project 0.1145 $ 1,337.20 Pioneer 0.1700 $ 4,125.94 Pioneer Project Construction 0.1700 $ 67,591 Berrenda Mesa Project Construction 0.1145 $ 14,052.47 Total $ 87,107.09 Berrenda Mesa WD Kern Fan Power Project Engineering Share Berrenda Mesa Project 0.6090 $ 7,112.25 Pioneer 0.1700 $ 4,125.94 Pioneer Project Construction 0.1700 $ 67,591.49 Berrenda Mesa Project Construction 0.6090 $ 74,741.96 Total $ 153,571.64 Buena Vista WSD Kern Fan Power Project Engineering $ 1,470.00 City of Bakersfield Kern Fan Power Project Engineering $ 10,793.76 Cross Valley Canal Kern Fan Power Project Engineering $ 60,228.98 I'. KCWA Kern Fan Power Project Engineering Share .~.. ID-4 $ 4,640.37 .,~ Pioneer 0.1000 $ 2,427.02 :. Pioneer Project Construction 0.1000 $ 39,759.70 Total $ 46,827.09 ,..: Kern Water Bank Kern Fan Power Project Engineering $ 74,004.28 ' Lost Hills WD Kern Fan Power Project Engineering Share .'.; Berrenda Mesa Project 0.0987 $ 1,152.67 Pioneer 0.1500 $ 3,640.53 Pioneer Project Construction 0.1500 $ 59,639.55 i:;' Berrenda Mesa Project Construction 0.0987Total $$ 76,546.1112,113.35 '. Semitropic Kern Fan Power Project Engineering Share Pioneer 0.1400 $ 3,397.83 ? ' Pioneer Project Construction 0.1400 $ 55,663.58 Total $ 59,061.41 Teion-Castac Kern Fan Power Project Engineering Share · i. Pioneer 0.0100 $ 242.70 Pioneer Project Construction 0.0100 $ 3,975.97 " Total $ 4,218.67 West Kern WD ~ Kern Fan Power Project Engineering $ 2,692.68 · Wheeler-Ridge WSD ::. Kern Fan Power Project Engineering Share Berrenda Mesa Project 0.1778 $ 2,076.45 Pioneer 0.2600 $ 6,310.25 ~·i: Pioneer Project Construction 0.2600 $ 103,375.22 ::: Berrenda Mesa Project Construction 0.1778 $ 21,821.22 Total $ 133,583.14 Water Board Meeting July 13, 2005 8. NEW BUSINESS A. Kern County Water Agency Banking Property Sphere of influence - For Board Information Water Board Meeting July 13, 2005 8. NEW BUSINESS continued B. Water Board Report No. 01-05 Regarding the Adequacy of City Water Supplies and Strategic Plan to Meet Future Water Needs. - Staff Recommends Acceptance of Report and Forwarding to City Council CITY OF BAKERSFIELD WATER BOARD REPORT NO. 1-05 JULY 13, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBJECT: WATER SUPPLIES FOR CITY OF BAKERSFIELD During the 2005-06 budget presentations Councilmember Maggard requested staff to present through the Water Board, a report regarding the adequacy of future City water supplies and the plan to meet those needs. With the continued rapid growth of the City it is imperative to ensure an adequate water supply is available to meet the City's growing needs. Staff reviewed the water supplies available to the entire City of Bakersfield Sphere of Influence area, including the proposed amended boundary, to determine if there is an adequate water supply to support development at build-out. The attached Statement of Water Supply describes the water supplies available to support this continued growth. The City's Kern River water, taxpayer supported State Project Water, stormwater capture, water reclamation programs and adjacent local water district supplies combine to provide the water available for growth. The City is working with local adjacent water districts that overlap boundaries for additional water to support development. The Water Board requests that the City Council accept this report on the "STATEMENT OF WATER SUPPLY" Respectively submitted, COUNCILMEMBER DAVID COUCH, CHAIR COUNCILMEMBER HAROLD HANSEN, VICE-CHAIR COUNCILMEMBER ZACK SCRIVNER CITY OF BAKERSFIELD STATEMENT OF WATER SUPPLY The City of Bakersfield is located in a semi-arid desert that relies on its water supply from the Kern River, use of the underlying groundwater basin, and imported sources. Some surface water supplies are purified and delivered for drinking water and much is recharged into groundwater aquifers to replenish pumped water. This evaluation of available water supply and calculated maximum water demand will use the lands within the entire City Sphere of Influence (SOI) boundary area, including the recently proposed amended boundary, as the total consumption area. The total SOI of 209,000 acres excludes the most obvious areas that are not planned for development, such as banking projects and the Kern River channel. The net water demand for Bakersfield has been calculated to be 1.25 acre-feet per acre. Net demand is the gross demand less return flows from sanitary sewerage. Table 1 NET ANNUAL WATER DEMAND Dwelling Units/Acre Acre-feet/Unit % Reclaimed Net Demand Acre-feet/Acre 2.5 1.0 50% 1.25 Reclaimed data from engineering study for the Wastewater Treatment Plant #3 - 2007 expansion plan and other recent local water assessment studies. An acre-foot is 325,850 gallons. SOURCES OF SUPPLY The City owns pre-1914 appropriative water rights to the Kern River that yields an average annual supply of 163,000 acre-feet. The average annual precipitation in Bakersfield is 6.49 inches, which yields a usable supply of 3,500 acre-feet. Improvement District #4 (ID4) of the Kern County Water Agency (KCWA) is a district containing 65,848 acres of which 42,362 acres are within City limits and 58,078 acres are within the City SOI. ID4 was formed to bring a supplemental water supply to the Bakersfield area and has a State Water Project (SWP) contract supply of 82,594 acre-feet annually. The average annual amount supplied to ID4 has been calculated to be 61,120 acre-feet of which approximately 52,600 acre-feet is available to the SOI area within that portion of ID4. The Rosedale Rio-Bravo Water Storage District (RRBWSD) is located on the northwest side of Bakersfield and encompasses 46,000 acres of which approximately 16,930 acres are within the proposed SOI. RRBWSD has an annual SWP supply of 29,900 acre-feet per year. The current estimated amount of supply that could be made available to RRBWSD lands within the SOI is about 8,200 acre-feet. Kern Delta Water District (KDWD) is located on the south side of the City and overlaps portions of the current City limits. KDWD owns Kern River water rights and has a contract with the KCWA receive SWP water. Over 30,000 acres of the SOI will be within KDWD boundaries. KDWD experiences about 35,000 acre-feet of recharge losses through its unlined canal system within both City and District boundaries. The City and KDWD are in discussions concerning additional water supplies diverted by KDWD for lands within their district, City limits and the SOI. The following table summarizes the available water supply for the expanded SOI. Table 2 SUMMARY OF AVAILABLE WATER SUPPLY Supplier Amount Proposed SOI Supply (acre-feet) (gross acres) acre-fi/acre City of Bakersfield 163,000 ~ Precipitation 3,500 : ~ :: ~ ID4 52,600 ::~o ~ :. KDWD 35,000 ;:;: : .:z : ~'~'::' ,~; RRBWSD 8,200 : ~,,) ;,: Total 262,300 209,000 1.26 Precipitation calculation may be affected by current and future storm water collection projects. The available water supply within the SOl divided over the entire SOl area will produce an acre-foot per acre supply. A comparison of the total available water supply of 1.26 acre-feet per acre (from Table 2) and the net demand of 1.25 acre-feet per acre (from Table 1), shows that there is an adequate water supply for the expanded SOI boundary area. The actual allocations and dedication of water to urban developed lands from the adjacent and overlapping boundary districts will be addressed in specific development project proposals. This analysis was calculated in a conservative fashion using gross acreage of the SOI and using the lower range of annual supplies from the various sources. 3 Water Board Meeting July 13, 2005 8. NEW BUSINESS continued C. Principles for Letter of Intent between Castle & Cooke, Bolthouse Properties, Kern County Water Agency and City - For Board Information May 26, 2005 Kern County Water Agency Bolthouse Properties, LLC Attn: Mr. James Beck Attn: Mr. Anthony L. Leggio 3200 Rio Mirada Dr. 7200 East Brundage Lane Bakersfield, CA 93308 Bakersfield, CA 93307 City of Bakersfield Water Resources Department Attn: Mr. Florn Core 1501 Truxtun Avenue Bakersfield, CA 93301 Re: Agreed Principles for Land Exchange/Development Agreement Gentlemen: This letter states the principles we have agreed to for preparation of a formal agreement between Kern County Water Agency, the City of Bakersfield, Bolthouse Properties, LLC and Castle & Cooke California, Inc. for the exchange of properties and the determination of various development rights among the parties. The following is an outline of the principal terms which would form the basis of a definitive written agreement between us when we reach agreement on all of the detailed provisions. 1. Bolthouse would grant to KCWA the real property owned by Bolthouse in the south half of Section 4, T30S, R26E consisting of approximately 235.9 acres, as depicted on the area map attached hereto as Exhibit "A". 2. KCWA would grant to Bolthouse that portion of the real property owned by KCWA in Sections 10 and 15, T30S, R26E which lies east of the west boundary of the proposed "West Beltway" alignment, consisting of approximately 275.9 acres, approximately.253.8 acres in Section 10 and approximately 22.1 acres in Section 15 as depicted on the map attached hereto as Exhibit "A". Castle & Cooke/Bolthouse shall support KCWA in insisting that the alignment for the West Beltway and other related impacts not be on KCWA property, but on this property transferred to Castle & Cooke/Bolthouse. If and when a portion of the property transferred to Castle & Cooke/Bolthouse is acquired by the City, State or other transportation entity for the West Beltway, then Castle & Cooke/Bolthouse, or their successors, shall pay to KCWA 50% of the consideration received for such acquisition. 3. Bolthouse/Castle & Cooke/City would grant to KCWA non-exclusive~ easements for ten 30' x 50' well sites for agricultural water wells, at mutually agreed upon locations2 within Sections 3, 4, 11 and 14, generally west of the extension of Allen Road. The sites in Sections 3 and 4 would be north of the Cross valley Canal, and west of the West Beltway Alignment. KCWA ~ The full use of all non-exclusive easements referenced herein shall be evidenced by recorded instruments and shall run with the land binding all successors and assigns. No other water wells, except for City wells or Castle & Cooke/ Bolthouse wells pumping water for use on the property, will be allowed. 2 It is anticipated that about half of these will be agreed upon soon and the remainder will be decided later. Three of these sites are to be within the right-of-way of the River Canal. would drill, complete, equip and maintain all water wells at its cost. As three of the ten well sites are anticipated to be within the City's Kern River Canal right of way, the City would grant to KCWA, by joint use agreement, consent to drill and operate these three wells. KCWA shall retain easements for continued use of the wells and pipelines on property transferred from KCWA, and the equipment associated with such wells shall remain the property of KCWA. KCWA or its successors shall be the only entity allowed to pump and take such water for use off the Bolthouse/Castle & Cooke properties within Sections 3, 4, 11, 12, 13 and 14 under City Ordinance, Title 16, Chapter 16.40, Section 16.40.010B, incorporated herein by reference. The provisions of the preceding sentence shall not prohibit Bolthouse/Castle & Cooke from pumping or taking water under any portion of the Bolthouse/Castle & Cooke Properties within Sections 3, 4, 11, 12, 13 or 14, and using such water for development purposes or for its amenities (such as lakes, water features or the like) on any other portion of said properties, nor shall the same prohibit Bolthouse/Castle & Cooke from using any of the existing agricultural wells or drilling new water wells on the properties for such purposes. City agrees to amend Exhibit "C" of the Pioneer Project Joint Operating Agreement to reflect potential use of these lands for recovery of banked water. City, Bolthouse, and Castle & Cooke shall cooperate and support KCWA in amending environmental documents to include these lands as Pioneer Project recovery areas. 4. Bolthouse/Castle & Cooke would grant to KCWA non-exclusive easements for underground pipelines to be used to transport water produced from the ten wells to the Kern River Canal, Cross Valley Canal or other point of delivery along mutually agreed upon routes. KCWA would construct and maintain the pipelines at its cost. Bolthouse/Castle & Cooke would reserve the right to cross the pipeline easements with roadways and other infrastructure and to grant other non- exclusive easements within these areas pursuant to common use agreements, so long as KCWA's use of the pipeline is not significantly adversely affected. Where possible, pipeline easements would be placed within existing or planned road rights of way or other public and/or utility easements. The City would grant to KCWA, by joint use agreement, consent to construct and utilize underground pipelines over the City's Kern River Canal right of way for the well sites that will be connected to the Kern River Canal. Bolthouse and Castle & Cooke would reserve the right to relocate KCWA's existing and future pipelines, facilities and easement areas at Bolthouse's/Castle & Cooke's cost. 5. In determining the locations of wells, pipelines and other KCWA facilities the parties would take into account Castle & Cooke's/Bolthouse's planned development, and would aesthetically integrate those facilities as a part of the development. KCWA and Castle & Cooke/Bolthouse would agree'upon a mutually acceptable design for KCWA's well housings and surface equipment so as to mitigate noise and visual impacts on surrounding development, and provide appropriate access for maintenance or rehabilitation. KCWA would be responsible for the costs of functional improvements such as pipelines and wells to agricultural standards with surrounding plain concrete block walls3 and standard gates, with the City to be responsible for incremental costs to bring any wells used jointly by City and KCWA to municipal standards, and with Castle & Cooke/Bolthouse to be responsible for the incremental costs of decorative block walls (beyond the cost of plain concrete block), gates (beyond the cost of KCWA's standard gates), and landscaping provided that such features would not unduly impair access to the wells for well maintenance. 6. The City will develop, consistent with City Municipal Code requirements, including, without limitation, the collection of all fees and the adherence to development standards therefor, 3 Except that KCWA shall only be required to pay for block walls surrounding wells within City right-of-way where necessary to reduce noise level to acceptable real estate industry standards, and Castle & Cooke shall pay for such block walls where such noise abatement is not necessary. water wells, pipelines and facilities in order to serve the domestic water needs for Bolthouse's/Castle & Cooke's projects within Sections 3, 4, 11, 14, 13 and within the lands to be acquired from KCWA in Sections 10 and 15. Development of wells in Section 13 for banking shall be subject to the agreement of the City and KCWA. 7. The City and KCWA will develop a water production management plan to co-manage water resources and facilities within the North half of Sections 3 & 4, and Sections 11, 13, and 14, and lands to be acquired from KCWA in Sections 10 and 15. KCWA and City wells located on Bolthouse/Castle & Cooke lands shall be no closer than 1,700 feet apart and, absent mutual agreement, each well shall be limited to a flow rate of 3,000 gallons per minute with an annual production not to exceed 4,000 acre-feet. KCWA's intent is to complete wells above 500 feet in depth unless it determines such depth is impractical after reasonable investigation, and City's intent is to complete wells below 500 feet unless it determines such depth is impractical after reasonable investigation. City and KCWA will each cooperate with the other to ensure that the design and use of their respective wells and facilities do not interfere with the design and use of the wells and facilities of the other. 8. (a) Except as otherwise set forth in paragraph 8(d) herein, the land exchange and other rights and obligations of the parties under the contemplated agreement would be contingent upon Bolthouse's/Castle & Cooke's obtaining all entitlements required in order to permit Bolthouse's/Castle & Cooke's development of Sections 11, 14 and 13, those portions of Section 4 lying north of the Cross Valley Canal, Parcel B of Parcel Map Wiaver No. 22-92 (within Section 3), and the lands to be acquired from KCWA within Sections 10 and 15, including annexation approvals, zone changes, general plan amendments, specific plan approvals, development agreements, mapping and the like, provided that if the exchange has not taken place within 5 years the agreement will be voidable by KCWA, City, Castle & Cooke or Bolthouse, and the parties will enter into new negotiations. KCWA would execute any applications and other documents required in order to permit Bolthouse/Castle & Cooke to process applications for entitlements on the properties to be acquired from KCWA within Sections 10 and 15. KCWA would cooperate with and support Bolthouse/Castle & Cooke in obtaining entitlements for these properties (such as sphere of influence amendments, annexation approvals, general plan amendments, zoning and mapping approvals), for example by providing its consent to conditions of approval. (b) All parties agree to support~ the alignment of the West Beltway illustrated on attached Exhibit "A". KCWA will support the alignment of the West Beltway, but KCWA reserves the right to review, comment, and challenge, if necessary, the design (not the alignment)of the West Beltway adjacent to KCWA property to reasonably protect KCWA's use of its property. (c) KCWA also reserves the right to challenge any planned uses of commercial/industrial property which would unreasonably interfere with KCWA's use of its property or potentially impair water quality. (d) City staff shall support2 the granting of an irrevocable License Agreement permitting KCWA to construct and operate pipelines and inlets into the Kern River Canal within the City's right-of-way, upon execution of this document. The pipelines and inlets shall be subject to ~ In cases where the governmental entities are subjected to public process requirements prior to governing body decisions, this agreement contemplates that the staff recommendations of the entities will be for support recognizing that ultimate decisions by the governing body in certain processes cannot be pre-ordained. 2 In cases where the governmental entities are subjected to public process requirements prior to governing body decisions, this agreement contemplates that the staffrecommendations of the entities will be for support recognizing that ultimate decisions by the governing body in certain processes cannot be pre-ordained. relocation only if the Kern River Canal is relocated and the City pays the cost of relocation. Bolthouse/Castle & Cooke shall grant an easement permitting KCWA to utilize a portion of Castle & Cooke's/Bolthouse's immediately adjacent lands provided that such portions shall not be more than 50' in length and 20' in width. 9. KCWA would assist Bolthouse and Castle & Cooke, if necessary, in obtaining surface waivers from fee owners and lessees of oil, gas and mineral rights within the properties to be acquired from KCWA in Sections 10 and 15. 10. Where practicable Bolthouse/Castle & Cooke and KCWA would coordinate efforts and cooperate in constructing pipelines and facilities in such a manner as to reduce costs (e.g. utilizing common trenching and utility lines where practicable). Bolthouse/Castle & Cooke and KCWA would each be responsible for its share of the cost of any shared work or facilities. 11. City would identify available or prospective public water system(s) and would provide any water supply analysis and other statements or documentation required in order to comply with Water Code Section 10910 and Public Resources Code Section 21151.9. 12. City would provide a commitment for domestic water service to Bolthouse's/Castle & Cooke's developments within Sections 3, 4, 11, 14, 13, and 10 and 15 confirming an intention to approve "will serve" letters subject to appropriate zoning, service areas, and procedural and all other State of California and City Municipal Code requirements. 13. Bolthouse/Castle & Cooke would design and subdivide its projects so as to provide non-exclusive access to KCWA's well sites via public or private roadways. 14. The exchange would take place and the easements would be delivered within 180 days after Bolthouse/Castle & Cooke has obtained entitlements for its developments, as referenced in Paragraph 8 above and all time pedods for legal challenges have expired; provided that the easements referenced in Section 8(d) above shall be delivered prior to the execution of the agreement contemplated in this document. Castle & Cooke/Bolthouse would, however, have the option of advancing the exchange date. 15. Bolthouse would continue to farm its lands in the south half of Section 4 until the exchange date. After the exchange date, if KCWA elects to lease these lands for farming purposes, Bolthouse would have a first right of refusal on any such lease(s). 16. On the exchange date, Bolthouse/Castle & Cooke would record a memorandum in the Official Records of Kern County in order to give public notice of the agreement. 17. City will eliminate its three future well sites along the east boundary of its 2800 Acres facility, and add one well site in Section 9 south of the Kern River. City will provide to KCWA three future well sites and one existing well (CBK 40) within the City 2800 Acres, two in Section 10 and one in Section 17. KCWA at its option may construct the two wells in Section 10 inside the 2800 Acres or inside the KCWA retained property or the KCWA/Bolthouse/Castle & Cooke exchanged lands. The existing CBK 40 well site will be sold to KCWA at a discounted price, basis to be agreed upon. City may remove equipment not needed by KCWA and not included in determination of the cost, such as automated control units. 18. KCWA, City, Castle & Cooke and Bolthouse will use good faith efforts to prepare and enter into a binding written agreement incorporating the terms and conditions outlined in this letter, within sixty (60) days following the execution thereof by all parties hereto. 19. KCWA and City shall meet and confer in a good faith effort to discuss the terms and conditions under which KCWA would support City's application to LAFCO for an expansion of City's sphere of influence. 20. As a part of KCWA's expansion of its facilities on the Cross Valley Canal, KCWA will construct a turn-out from the after bay of KCWA's pumping plant no. 5, and a pipeline from said turn-out to the existing recharge ponds located adjacent to Stockdale Highway and Jewetta Avenue. Such construction shall be in accordance with the specifications referenced on the cost estimate attached hereto as Exhibit "B". KCWA with funding from its Improvement District No. 4 (ID4), City and Castle & Cooke/Bolthouse shall each bear one-third (1/3) of the actual costs of constructing the turn-out and pipeline, provided that in the case of Castle & Cooke/Bolthouse, said actual costs shall not exceed one-third (1/3) of the total estimated costs as set forth on the cost estimate attached hereto as Exhibit "B". The turnout and pipeline shall be owned and operated by ID4 and there shall be no obligation on the part of the Agency and/or ID4 to supply water to these ponds. ID4's use of the pipeline and recharge ponds shall be unrestricted. This letter is not intended to be the final binding agreement of the parties, but rather is intended to state agreed principles which will form the basis of a mutually acceptable written agreement after good faith negotiations on detailed implementation provisions. If the above correctly states your understanding of the principal terms we have discussed, please so indicate by signing below and returning a copy of this letter to me. I will then have our legal counsel prepare a first draft of a definitive agreement for your review, development of more detailed implementation provisions, and execution. I look forward to working with you toward finalizing our agreement. Very truly yours, Castle & Cooke California, Inc. By: Bruce Freeman Kern County Water Agency Bolthouse Properties, LLC By:. By: James Beck Anthony L. Leggio City of Bakersfield Water Resources Department By: Flom Core i ~ CASTLE & COOKE/I L i : T,O~~ ~ ~ ~ o BOLTHOUSE FARMS I ,.,~__..,,~ i ..~'~ / ~. ,-~----'- ~ . II o DEVELOPED KERN WATER %, ~ BANK j%.. , ~ PIONEER PROPER~ ~ ~ ~ ~m~ ~ T0 *~ ~Nm~ ~ REVISED RECOVERY AREA e~ ~o ~ ~ e~, ........ P~ONEER PROJECT KERN COUN~ WATER AGENCY ~ ~ ~ KCW~CASTLE & COOKE/BOLTHOUSE ~ND EXCHANGE ~ ~: DECEMBER 1, 2003 Water Board Meeting July 13, 2005 11. CLOSED SESSION A. Conference with Legal Counsel - Existing Litigation Closed Session pursuant subdivision (a) of Government Code section 54956.9 North Kern Water Storage District v. Kern Delta Water District - Tulare County Superior Court Case No. 96-172919 ADMINISTRATIVE REPORT WATER BOARD MEETING DATE: July 13' 2005 IAGENDA sEcTION: cl°sed Sessi°nITEM: 11. A o TO: David Couch, Chairman Harold Hanson, Councilmember Zack Scrivner, Councilmember APPROVED FROM: Virginia Gennaro, City Attorney DEPARTM£NT HEAD ~ DATE: July 1, 2005 CITY ATTORNEY ~ SUBJECT: 1. Conference with Legal Counsel - Existing Litigation Pursuant to subdivision (a) of Government Code section 54956.9: North Kem Water Storage District v. Kern Delta Water District- Tulare County Superior Court Case No. 96-172919 VG:AMS/Isc S:\WATER\ClSessAdmin.07-13-05doc.doc 711/2005