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HomeMy WebLinkAbout04/05/78 -AG'-ENDA WATER BOARD .- CITY OF BAKERSFIELD WEDNESDAY~ APRIL 5, 1978 4: 00 P .M. Call meeting to order Roll Call - Board Members: Rogers, Chairman; Barton, Bergen, Hoagland, Ratty 1. 'Approve minutes of regular board meeting 'of March 1, .1978. 2. Agricultural water rates for Kern River Water in 1978. - BOARD TO APPROVE 3. Letter Agreement between City.of Bakersfield and Tenneco West, Inc. for the sale of water to Tenneco West, Inc. - BOARD TO'APPROVE AND AUTHORIZE CHAIRMAN TO SIGN. 4. Kern-Tulare Water District five (5) year assignment of basic contract to Tenneco West, Inc. - BOARD TO APPROVE. 5. Staff Comments 6. Board Comments 7. Adjournment A D,.DE N D U M WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY~ APRIL 5, 1978 4:00 P.M. Letter Agreement from Bidart Bros, setting forth the understanding regarding the purchase of irrigation water by Bidart Bros. from the City of Bakersfield, ~ BOARD TO APPROVE AND AUTHORIZE CHAIRMAN TO SIGN. Agreement between Chevron U.S.A., City of Bakersfield and North Kern Water Storage District, for.the disposal of Chevron water to the Beardsley Canal.'- BOARD TO APPROVE AND AUTHORIZE CHAI~4AN TO SIGN. MINUTES WATER BOARD~ - CITY OF BAKERSFIELD WEDNESDAY, MARCH 1, 1978 4:00 P.M. The meeting was called to order by Chairman Rogers in the City Hall Caucus Room. '~ The secretary called the roll as follows: Present: Rogers, Bergen, Hoagland, Ratty Absent: Barton Paul'Leland, Water Superintendent for Kern Delta Water District, also, attended the meeting. The minutes from the regular meeting of February 22, 1978, were approved as presented. The meeting went into Executive 'Session at 4:05 P.M. to discuss possible litigation. The regular meeting was reconvened at 4:15 P.M. For the record pursuant to the Brown Act the action taken by the · Water Board was to authorize that the following action be taken upon motion by City Attorney, Kenneth Hoagland. That a lawsuit is authorized against Kern Delta Water District on their proposed sale of water they now have in storage in Isabella Reservoir which we consider to be a violation of the City's wa%er rights and to inform the Kern~County Water Agency of our concern over the matter. Also, ko authorize employment of Mr. Ham Enersen to represent the City of Bakersfield in this matter if he is available, and that North Kern Water Storage District and Kern Delta Water District be informed of the action taken by the board in regard to this matter. The motion was passed. Mr. Paul Leland, Water Superintendent for Kern Delta Water District at this time addressed the board relative to the. matter 'of the Truxtun Avenue crossing being installed in the Carrier Canal. In Kern Delta's opinion this is being done at a very poor time as far as the irrigation season is concerned and %he only thing that is taking some of the pressure off in their district of not being able to receive water are the rains and floods that we have had recently. Mr. Leland stated that the City Department of Water had been very cooperative about trying to get water in from the river, however, he feels the Department of Public Works did not make Kern Delta aware of this culvert closing until essentially the last minute. Staff~ Comments [~r. Bergen stated that he had discussed the matter of the Carrier Canal briefly with John Chafin. The City's ownership is 51%, but inasmuch as it is used by other entities the canal should not be closed without prior notice to %he Water Board. The Water Board could make other using departments aware of the intention to close the Carrier Canal. o- ~ ~ Afker .~ brief discussion by'the board Mr. Hoagland made a motion . ~ 'that the Public Works D~partment get the contractor to put a bypass in immediately. After further discussion Mr. Hoagland withdrew his motion. Mr. Bergen made a motion that the board request John Chafin contact the Public Works Department and the property owners that are affected and work the matter out and report back to the board at the neXt meeting. The mo~i6n was carried. There being, no further business ~%o Come before the board, Chair- man Rogers adjourned the meeting at 4:28 P.M. Lih~a~ HO~3n~er~,' S~c~e~ary City of Bakersfield Water Board MEMORANDUM ............ Z.8. ................ TO ..................... .~..q~.~.....~..,... ~..~...~... ~ .......................................................................................................................... FROM...: ............ .G. ~..N.. ~....B..O...G..~...~.~ .... .~ ......... j ....................................................... ' ................................................ SU BJ ECT ........... ~.~.~...~.~..~.~..~.~g.~...~...~Z~ ................................................................................... It now appears that the 1978 Kern River water supply will yield approximately 175% to 200% of normal runoff. With this magnitude of supply available on the Kern, plus surplus supplies forcasted for both the C.V.P. and State aqueduct projects, the most logical pricing would generate and promote the greatest use of water. With this in mind, the following rates could be suggested: Per Ac. Ft. 1) Beardsley Lateral consumers $ 12.00 2) Miscellaneous Water Sales 12.00 3) Rosedale-Rio Bravo (per contract) 6.00 4) K,R.C. & Irr. Co. 30% ent'l, sale 6.00 5) .City water sold for groundwater .replenishment 1.50 These rates should be competitive with other valley water supplies' and should encourage full use of the City's 1978 Kern River water supply. GB:lh cc: T. Stetson cc: 3-10-78 H. Bergen K. Hoagland Tenneco,West Ro. Box 9380 °'"' A Tenneco ComDany Bakersfield. Cahfornia 93309 (805) 832-9010 March 13, 1978 Mr. John E. Chafin Water Manager City of Bakersfield 1501Truxtun Avenue Bakersfield, CA 93301 Dear Mr. Chafin: This letter is to set forth the basis upon which the City'of Bakersfield will sell and Tenneco West, Inc., (TWI) will purchase water. This agree- ment shall be effective immediately and run through October 31, 1978. Subject only to those specific provisions of Agreement No. 77-71 per- taining to the water distribution priorities of the "Four Agricultural Contractors" as described therein, and the Rosedale Rio Bravo Water Storage District, the City will make available for purchase by TWI twenty- five thousand (25,000) acre feet or more at a price of Twelve Dollars ($12.00) per acre foot. Water will be delivered on demand as required and ordered by individual lessees within the service areas of the Pioneer and James Canal Systems. The amount of water charged to TWI will be as measured by the City at the appropriate farm delivery gate. Delivery operations of the canals shall be conducted by the City, including the measurement and recording of the amount of deliveries as set forth under Agreement No. 78-03 W. B. The City will provide a summary sheet at the end of each calendar month showing the amount of delivery, by delivery point, along with the billing to TWI, for payment of the total amount delivered during each month. In addition to the water to be sold to TWI by the City within the Pioneer and James .service areas for direct irrigation purposes as set forth above, the City, at TWI's request, will sell water to TWI for ground water replenishment of its land at One Dollar Fifty Cents ($1.50) per acre foot. Mr. John E. Chafin Page 2 March 13, 1978 The City will not be liable in the event it is impossible to deliver water due to lack of capacity or failure of any of the Pioneer or James Canal Systems. Very truly yours, Melvin Jans Vice President MJ:cs ACCEPTED: CITY OF BAKERSFIELD By Da te KERN-TULARE WATER DISTRIIgT Great Western Savings Building 1415 Eighteenth Street, Room 314 Bakersfield, California 93301 Telephone (805) 325-9031 1805) 327-3132 BOARD OF DIRECTORS THOMAS E. ASHLOCK, HUGH T. WILLIAMS, President Manager DONALD C. WEST, Vice-President STEPHEN E. WALL, J. NORMAN DAWE, Secretary Counsel, Treasurer VINCENT J. ZANINOVICH .lAMES R. UNDERHILL April 5, 1978 City of Bakersfield Department of Water 1 501 Truxtun Avenue Bakersfield, CA 93301 Attention: John Chafin Gentlemen: In accordance with the contract between the City of Bakersfield and Kern-Tulare Water District the transfer of any of the water purchased by Kern-Tulare Water District is subject to the written approval of the City. Kern-Tulare W~ter District hereby requests to assign to Tenneco West, Inc. 16,500 acre feet (82.5%) of its Basic Quantity entitlement and other such contractual ~ights that Tenneco should elect to receive for a period of 5 years starting January 1, 1978 and ending on January 1, 1983. Attached is a copy of the proposed agreement between Kern-Tulare Water District and Tenneco West, Inc. Very truly yours, Thomas E. Ashlock Manager TEA: cl Enclosures AGREEMENT OF ASSIGNMENT This assignment is to be effective as of the first of January~ 1978, and is between KERN-TULARE WATER DISTRICT, ("Assignor"), a Public Corporation in the State of California, and TENNECO WEST, INCo, ("Assignee"), a Delaware corporation. Assignor has contracted to purchase a certain quantity of Kern River water from the City of Bakersfield, said contract being entitled "Agreement for the Sale of Kern River Water," referred to as Agreement 76-61. Assignor desires~ to assign to Assignee with one exception its rights and obligations under said contract for the period January 1, 1978, through and including December 31, 1982, and the payment due the City of Bakersfield on January 1, 1983. A copy of said contract is attached hereto as Exhibit A. Under the terms of the agreement between Assignor and the City of Bakersfield, the City agrees to deliver to Assignor a Basic Quantity of water averaging 20,000 acre feet per year. Assignor hereby reserves and excepts from said assignemnt on a noncumulative basis its right and corresponding proportionate obligations under said contract to a maximum of 3500 acre feet per year (17.5%) of its Basic Quantity of water emtitlement under said contract. The remaining 16,500 acre feet (82.5%) Basic Quantity entitlement plus all other contractual water entitlements that Assignee on a timely basis elects to receive shall be the subject of this assignment and the exclusive property of Assignee. The water supply entitlements paid for and/or elected by Assignee prior to December 31, 1982, shall, if not previously delivered to Assignee, accumulate and survive said assignment expiration date and shall be delivered to Assignee in accord with said contract provisions relating to make-up water and with the full cooperation of Assignor. Assignor and Assignee, during the life of this assignment, shall cooperate to compute the respective proportionate costs. Assignee shall pay its share of each respective payment to Assignor at least 5 days before such payment is due to .the City of Bakersfield. Assignor shall timely pay to the City of Bakersfield all payments required to be paid to the City of Bakersfield pursuant to said contract. It is understood by Assignor and Assignee that this assignment of the Kern Tulare-Bakersfield contract is subject to the written approval of the City of Bakersfield. City approval shall be evidenced by a written memorandum co-signed by itself and the Assignor, setting forth the City's acknowledgment and approval of the fact that Assignee will be using said water exclusively on its own property, all being located outside Assignor's boundaries but within the County of Kern. Dated: , 1978. TENNECO WEST, INC. KERN-TULARE WATER DISTRICT By. By Melvin Jans, Vice President - - - - "Assignee" "Assignor" , · ALFALFA ROUTE I, BOX 860 PHONE 399-91ZI GRAPEB ALMONDB CAI'~.E March 29, 1978 City of Bakersfield 1531 Truxtun Ave. Bakersfield, CA. 93301 John Chafin, Manager Department of Water Dear Mr. Chafin: This letter is for the purpose of setting ~f0rth our understanding regarding the purchase of irrigation water by Bidart Bros. from the City of Bakersfield. Bidart Bros. and The City of Bakersfield agree as follows: (1) The amount of water to be~made available in 1978 will not be less than 2,000 acre feet. (2) The water sold underagreement shall be delivered to Bidart Bros. lands within the Kern River Canal and ~Irrigating Co. service area. Water will be measured at the established public utility delivery gates. (3) The price for the water shall be $12.00 per acre foot. Payment shall be made by Bidart Bros. in the amount of $24,000.00, (2,000 A/F X $12.00= $24,000.00), not later than April 10, 1978. (4) The delivery period shall commence March l, 1978, and continue through December,1978. (5) Any part of the 2,000 acre feet of water not delivered during the above stated period shall be delivered at a time mutually agreed to by the parties of this agreement. (6) Bidart Bros. hereby agrees that this agreement and sale hereunder is a temporary accomodation for the above mentioned period only; that neither the agreement nor any sale thereunder will be or constitute a water right or public service right; and that no claim will ever be made that Bidart Bros. or the lands receiving the water may be entitled to continue to receive such water as a public utility customer, as a private water right, or otherwise. I£ this correctly sets forth our agreement, please sign the original copy and return to US. Very Trul~ours Date .. Accepted By: :.~. ~idart, President t/ ' CITY O~ B~K~RS~IEBD By Cha±rman~ ~ator Board Date Chevron .... Chevron U.S.^. Inc. P.O. Box 5355, Bakersfield, CA 93308 J. L. Rowland Operations Superintendent Northern California Division Producing Department April 3, 1978 North Kern Water Storage District~.. .... City of Bakersfield P. O. Box 1195 ~ "1501 Truxtun Avenue Bakersfield, CA. 93302 Bakersfield, CA. 93301 Gentlemen: We are submitting our proposed agreement, herein, for the disposal of Chevron water to the Beardsley Canal. Please note that the sentence comprising the second paragraph of Item 8 has been deleted. Our legal staff objected to this sentence for it was in direct contradiction to the first paragraph. We believe there should be no trouble in accepting this proposed change, for the same general thoug~is expressed in Item 2, page l, and further expressed or implied throughout the agreement. With the exception of the above minor change, it is our understanding all portions of the attached agreement are acceptable to all parties. We are attaching three copies for signatures. When these have been signed, please return_~h~e·signed agreements and Chevron will sign all copies and return one to each of you-. Very truly yours,. . t.~ao~ · Attachments THIS AGREEMENT dated , 197__, is between CHEVRON U.S.A. INC., a California corporation, hereinafter called "Chevron," First Party, THE CITY OF BAKERSFIELD, a Political Subdivision of the Sta~te of California, some- times hereinafter called "City" and NORTH KERN WATER STORAGE DISTRICT, a Political Subdivision of the State of California, sometimes hereinafter called "District," with City and District sometimes hereinafter collectively called Second Party. W I TNES S E TH: WHEREAS, Chevron owns and operates a water reclamation plant in the Kern River Oilfield of.Kern County, California, in Section 9, Township 29 South, Range 28 East, M.D.B.&M., wherein oilfield water produced in said oilfield by Chevron and others, and wherein refinery waste water from refineries located in and near said oilfield are processed and reclaimed for use in oilfield operations. WHEREAS, oilfield operations use less than all of the water processed and reclaimed at said reclamation plant and a surplus of said reclaimed water exists. WHEREAS, Second Party operates the Beardsley Canal which traverses said Section 9 and owns water carried by said canal and is willing to permit Chevron to dispose of said petroleum industry process water (hereinafter called "oilfield waters") surplus to Chevron's needs into said canal subject to certain conditions. WHEREAS, City and District have entered into a joint agreement dated August 15, 1977, pursuant to' which City amd District have agreed to negotiate this agreement with Chevron. NOW, THEREFORE, for and in consideration of the premises and of the cove- nants hereinafter contained, the parties hereto do hereby agree as follows: 1. Chevron shall, at its sole risk and expense, construct such pipelines and facilities as may be required to discharge such surplus oilfield waters into said Beardsley Canal, which discharge point shall be mutually agreea'ble to all parties. Design and installations of all such pipelines or facilities shall be approved by Second Party when ~th.ey encroach on Beardsley Canal right of way. 2. Chevron agrees to discharge into said canal all surplus oilfield waters produced at said reclamation plant which are not used in oilfield operations, with such discharge to be maintained in reasonably constant flows, except in emergencies. In case of an emergency, City shall be immediately notified by telephone, and note of the emergency shall be logged by the City Dispatcher. 3. Second Party agrees to permit the discharge, into said canal of all surplus oilfield waters del£vered by Chevron provided Chevron shall maintain the required NPDES Permit for the discharge of such water and provided further such water meets t~e discharge requirements set forth in California Regional Water Quality Control Board Order No. 77-100 (NPDES No. CA 0080853) as it may be modi- fied from time to time and also meets the water quality specifications set forth' in Paragraph 4 hereof. Any increase in the total discharge or modification in the water quality standards under Order No. 77-100 shall be subject to the prior approval of Second Party. 4. Chevron agrees that the quality of water discharged into said canal shall meet the following limits. The 30 day average of the hereinafter referred to quality measurements will not exceed 120% of the 30 day average over the previ- ous 24 months for such measurements. The daily maximum of such measurements will not exceed 150% of the 30 day average thereof. The initial limits are to be as follows: Quality 30-Day Avera-ge Daily Maximum .Electrical Conductivity 1300 micromhos 1600 micromhos Chloride 160 mg/1 200 mg/1 Boro~ 2.0 mg/1 2.0 mg/1 Oil and Grease 35 mg/1 45 mg/l 5. The parties recognize that said canal requires periodic maintenance and that emergencies may occur beyond the control of Second Party, all of which may require the closing of the canal and the discontinuance of Chevron's discharge. Second Party agrees that prior to closing said canal for scheduled maintenance, it shall notify'Chevron by O~tober 1 each year of the best estimate of a date for closing the canal. Second Party further agrees not to close said canal for more than ten (10) consecutive days unless by mutual agreement. Second P~rty agrees also that it shall give Chevron as much notice as practical before closing said canal for emergencies. In the case of emergencies arising from matters beyond the control of the Second Party or any of them, Second Party agrees to use its best effort to put the canal back in operation as soon as practical. Chevron shall be - 2 - responsible for the disposal of its surplus oilfield waters during such periods as said c~nal may be closed. Second Party will ~ake their best effort to schedule any shutdown of the canal at a time and in a manner where.by the Chevron surplus oilfield waters may be mixed or blended to an effluent which shall be within the standards of acceptance as established by the Central Valley Region of the California Water Quality Control Board. When Chevron deems it to be impractical or uneconomic to otherwise dispose of surplus water during periods of canal shut- down, Second Party agrees to jointly or severally sell Kern River water to Chevron at a reasonable rate for irrigation water at the then existing market con,ditions from Kern River to enable Chevron to dilute and dispose of its surplus water by percolation without violation of the water quality standards established by the Central Regional Water Quality Control Board. 6. Chevron agrees to pay District Five Dollars ($5.00) per acre foot, which charge represents costs to modify and enhance the water quality for irriga- tion use, and an additional Five Dollars ($5.00) per acre foot, which charge~ represents costs to monitor, sample, control, mix, blend the water, for each acre foot of water discharged by Chevron into said canal pursuant to this agreement. Chevron shall make all payments to District within thirty (30) days of receiving a bill therefor. The two aforementioned Five Dollar. ($5.00) charges shall be subject to adjustment upward or downward~in proportion to the fluctuation, if any, in the ~Implicit Price Deflator Index as published by the U. S. Department of Commerce, which used the year 1972 as a base year = 100, or whatever other index shall re- place said index in the event~of its discontinuance. The adjusted rate for any calendar year shall be determined by multiplying the Five Dollar ($5.00) per acre foot figures by the Price Index of the third quarter of the~year immediately pre- ceding and then dividing the result by the price index for the third quarter,1977. 7. Chevron warrants that the water discharged into the Beardsley Canal shall at all times' comply with the water quality standards set forth in Paragraph 3 hereof. Chevron agrees to hold Second Party harmless for any failure of said discharged water to meet said standards and to indemnify Second Party, or either of then~ for any damages rendered against Second Party because such water fails to meet such standards, including ~ttorney'$ fees and costs of any actions brought against Second Party, or either of them, because of said discharge of such water - 3 - which fails to meet such standards; provided, Chevron assumes any duty or obliga- tion which may result from another governmental agency i~.posing upon Second Party a tax or assessment due to the degradation of the groundwater resulting from Chevron's said water. In the event Chevron considers any such duty, obligation, · tax or assessment to be too excessive, this agreement may be terminated by Chevron. 8. It is expressly understood between the parties that Chevron has not dedicated and does not-intend to dedicate and does not in any dedicate its Water Reclamation Plant, pipeline facility or any portion of the water'processed at said reclamation facility to public use, and that Chevron is not a public utility or common carrier. 9. If the oilfield waters delivered hereunder by Chevron to Second Party cannot reasonably be economically processed to meet the discharge require- ments set forth in said California Regional Water Quality Control Board Order No. 77-100 as it may then be applicable, Chevron may cease delivering said oilfield waters to Second Party. If the oilfield waters delivered hereunder by Chevron to Second Party cannot reasonably be economically processed to meet the water quality standard§ s~t 'forth i~ P~ragraph 4 he~ebf, Chev~on~shall, upon the request of Second Party, cease delivering said oilfield waters to Second Party. In the event said delivery stops for a consecutive 60 day period, under the provisions of this paragraph, either party may, Upon ten (10) days notice to the other party, termi- nate this agreement. 10. This agreement shall become effective as of the day hereof and shall continue until January 1, 2000; provided, however, that either First Party or Second Party may terminate this'agreement sooner upon one (l) year's written notice to the other. 11. Paragraphs 7, 9 and 10, notwithstanding, Chevron shall not terminate this agreement and dispose of the water dedicated to Second Party hereunder by delivery to any Third Party. 12. Notices hereunder shall be given in writing and shall be effective upon posting in the U. $. Mail, postage fully prepaid, certified or registered, -4- addressed to the parties as follows: CHEVRON U.S.A. INC. NORTH KERN WATER STORAGE DIST. CITY OF BAKERSFIELD P. O. Box 5545 P.O. Box 1195 1501 Truxtun Avenue Oildale, CA 93308 Bakersfield, CA 93302 Bakersfield, CA 93301 This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF BAKERSFIELD CHEVRON U.S.A. INC. By Its Attorney-in-Fact BM NORTH KERN WATER STORAGE DISTRICT BM By -5 -