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HomeMy WebLinkAbout01/14/81 AGENDA WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, JANUARY 14, 1981 4:00 P.M. Call meeting to order Roll Call - Board Members: Barton, Chairman; Payne, Ratty, Kelmar, Oberholzer 1. Approve minutes of regular meeting of November 19, 1980. 2. Scheduled Public Statements. 3. Correspondence Incoming: None 4. Letter to North Kern Water Storage District regarding proposed Cawelo Water District/North Kern Water Storage District exchange agreement dated December 9, 1980. - FOR BOARD CONSIDERATION. 5. Request for assignment of the following City water contracts now held by Tenneco to the James Pioneer Improvement District of the North Kern Water Storage District: a) Assignment of Tenneco portion (82.5%) of Kern Tulare Water District basic contract to James Pioneer Improvement District. b) Assignment of Tenneco water purchased from City (100,000 acre feet "in place") per agreement 80-24 W.B., to be assigned from Tenneco to James Pioneer Improvement District. - FOR BOARD ACTION. 6. Authorize Water Board Meetings to be changed from Wednesday at 4:00 P.M. to Thursday at 4:00 P.M. This would elminate possible conflicts with City Council meeting. - FOR BOARD CONSIDERATION. 7. Transfer of $90,000.00 from Agricultural Water Enterprise Budget to the City General Fund. These funds were budgeted for transfer to General Fund in current fiscal year. See attached memo from John Chafin to Phil Kelmar for details. - FOR BOARD ACTION. 8. Mainline Extension Agreements for various Tract and Parcel ~aps within the Ashe Water System. - ACCEPTANCE OF EXECUTED AGREEMENTS. 9. Staff Comments - (Stan Hatch and Tom Stetson) update on current negotiations. - FOR BOARD INFORMATION 10. Board Comments 11. Adjournment MINUTES WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, NOVEMBER 19, 1980 4:00 P.M. The meeting was called to order by Mr. Ratty, Acting Chairman i .~~ in the City Hall Caucus Room. The.secretary called the roll as follows: Present: Ratty, Kelmar (Acting City Manager), Oberholzer Absent: Barton, Payne, Bergen Staff Present: Bogart, Chafin, Core, Hansen, Hostmyer Others Present: Chris Garren, River West The minutes from the regular meeting of November 5, 1980, were approved as presented. Two letters dated November 10, 1980, from Melvin L. McColloch, President of Olcese Water District were presented to the board. Mr. Oberholzer made a motion that the letters be received and referred to the staff for review. The motion was passed. A letter addressed to Mr. James Robertson, Executive Officer State of California Regional Water Quality Control Board from James J. Barton Chairman of the City of Bakersfield Water Board, accepting up to $100,000.00 in 208 funds for use in monitoring and improving i ~ 2800 acre recharge basin. At this time Water Manager Chafin asked ~ "~ Water Superintendent Florn Core to give a brief summary of what was involved regarding the grant, for funds. Mr. Oberholzer made a motion that the Chairman be authorized to sign the letter and it be sent to the State of California Regional Water. Quality Control Board. The motion was passed. Staff Comments At this time Assistant Water Manager Gene Bogart informed the board that there was an item on the Council Agenda tonight for a Public Hearing to grant a Negative Declaration for construction of a river canal turnout structure. At this time Domestic Water Superintendent John Hansen presented for board information only fourteen (14) Mainline Extension Agreements with Tenneco Realty Development Corporation. Board Comments Mr. Oberholzer informed the board that the Contract with North Kern Water Storage District to participate in the 1980-81 Cloud Seeding Program has been approved by the attorneys office as to language and the required insurance coverage has been obtained from Atmospherics, Incorporated. There being no further, business to come before the board, Acting Chairman Ratty adjourned the meeting at 4:20 P.M. ~9~es J.6/Barton, Chairman ~ity of Bakersfield Water Board Lihda Hostmyer, Secret~ry City of Bakersfield Water Board ITEMS FOR AGENDA JAN? 1981 Agenda Section NEW BUSINESS ~EP~M~OFWATE~ Requesting Department PUBLIC WORKS DEPARTMENT Date for Water Board Action J~UARY 14, 1981 1. Description of Item: Mainline Extension Agreements for various Tract and Parcel Maps within the Ashe Water System. 2. Comments: The Public Works Department has reviewed the agree- ment andrecommends acceptance. 3. Suggested Action: Acceptance of executed agreements. , 4. Attachments: ~irector o ~, ic Works p p~~an age r A d ' " /~ NOTE: Items for Water Board Agenda are to be submitted prior to 10 a.m. Friday for the Wednesday meeting of the following week. ~' C A L I F 0 R N I A -~_~.~-~_~ ~?~_ ~ -~---- · . -~~-~ .~- DEPARTMENT OF WATER December 9, 1980 Board of Directors North Kern Water Storage District P. O. Box 1195 Bakersfield, California 93302 Re: Proposed Cawelo Water District/North Kern Exchange Agreement Gentlemen: We are in receipt of a letter from C.H. Williams, your Engineer- Manager, dated December 2, 1980, which transmits what purports to be an "executed letter-agreement" concerning an exchange of water with the Cawelo Water District. This transaction is in conflict with the provisions of the July 9, 1952 agreement between the Kern County Land Company, et al., and your District which allows you to use certain water rights now owned by the City of Bakersfield subject to specified limitations and conditions. That contract provid, es among other things: "7. Place of Use by District. Any and all water diverted by the District from the Kern River hereunder may be used within the present boundaries of the District, but not elsewhere." We note that the apparent effect of the exchange agreement is to deliver water from the Kern River to the ~Beardsley or Calloway Canals for use by Cawelo outside the boundaries .of your District. As noted, this is explici%ly prohibited by the contract. As a consequence, it will be necessary to formally request and obtain consent of the City of Bakersfield as the successor-in- interest to the Kern County Land Company and its subsidiaries under the 1952 agreement to waive its rights thereunder. Page Two Board or,Directors North Kern Water Storage District December 9, 1980 It must be kept in mind that while the 1952 agreement allows your District to use Kern-River water, the underlying rights associated with that water remain with the City of Bakersfield. Under Paragraph 3 of the agreement any water not diverted by .your District reverts to the City of Bakersfield. Under ,Paragraph 5 the City of Bakersfield specifically retains the rights to all waters which the District fails to divert or fails to use at any given time. Consequently, if your District does not use .the · Kern River water for the purposes and at the places specifically provided for in the contract, that water reverts to the City of Bakersfield. A non-instantaneous exchange which results in the utilization of Kern River water by another entity at a time when your District would not otherwise be using water could directly infringe upon the rights of the City under the agreement. We would need additonal information to determine the extent or serious- ness of such an infringement. We would also draw your attention to Paragraph 7 of the Agreement transferring the Beardsley Canal to your District (Quitclaim of Canal Easem~.~nt Including Certain Appurtenances Thereto and Interest' in Real Property dated February 28, 1978). In that contract it provides that the Beardsley and Calloway Canals cannot be used by your District for purposes "other than transportation of Kern River water for irrigation use within District boundaries . . . or to carry out an exchange which provides for uses of irrigation water for such purposes ." unless certain conditions are complied with. The conditi~n~ involve joint consideration of any such pro- posed utilization, written notice of all meetings and negotiations and the inclusion of the City as a necessary party tO any ~agreement to utilize the canal for such .other purposes. It would also appear that, if you intend to use the Beardsley or Calloway Canal for the delivery of State Project Water under an arrangement, this would also require you to follow the procedures set forth in Section 7 of the 1978 agreement. In the absence of a formal consent to any such arrangement by the City, any deliveries by your District to Cawelo under the proposed November 20, 1980 agreement, would have to be treated as excess diversions by your District under Paragraph 4 of the 1952 agree- ment,__~which provides in pertinent part: "If the District shall ever divert from the Kern River more water than it shall be so entitled to divert at such time, then the amount of excess so diverted shall be deducted and withheld from the first water which the District· otherwise would be entitled under this agreement to divert thereafter." Page Three Board of~ Directors North Kern Water Storage District December 9, 1980 We would remind your Board that we previously sent you a letter dated August 28, 1978 spelling out these principles in connection with an exchange you were contemplating with the Kern County Water Agency. Given your subsequent termination of consideration of that proposal, we assumed that you were fully aware of and under- stood the limitations on your right to use water from the Kern River under the 1952 agreement. If upon review of this letter you conclude you wish to proceed with the Cawelo exchange, we would ask that you file with the City a written request for approval of the exchange, the reasons therefor, and any mitigating factors about which we may be unaware, and we will promptly consider your request and give you a response. Very truly yours, ~e~~~s j. B~ar~, C~~ha~rman City of Bakersfield Water Board JJB:lh cc: Milo E. Hall Rolf A. Jacobsen William E. Moore, Jr. John A. ~Bidart Mel Jans ii!.~-~RTH KERN WATER STORAGE DiS T 1416 . 18th STREET, ROOM 705 BOX 1195 , BAKERSFIELD, CALIFORNIA 93302 (805) 325-3116 December 2, 1980 I Mr. John Chafin City of Bakersfield Department of Water 1501 Truxtun Avenue Bakersfield, California 93301 Re: Cawelo Water District/North Kern Exchange Agreement Dear John: Attached for your records is a copy of the executed letter agreement concerning North Kern taking water during December 1980 from Cawelo Water District to be returned to Cawelo at Pump Station "B" at mutually agreeable times and amounts in the future. We contemplate coordinating this with ID#4 Spreading in the Calloway so as to deliver the full amount of Cawelo supply from-the Cross Valley Canal to North Kern at Seventh Standard Road. Very truly yours, '~.. ! ! ~ ., · - . C. H. Williams Engineer-Manager attachment cc: John Jones H. E. Steinmetz CHW:lm ~RTH KERN WATER STORAGE DI~ICT 1418 · 18th STREET, ROOM 705 BOX 1195 BAKEnSFIELD, CALIFORNIA 93302 (805) 3~5-3116 November 20, 1980 Cawelo Water District 1415 - 18th Street, Room 305 ' Bakersfield, California 93301 Re: 10/80 Exchange Gentlemen: The staff of Cawelo Water District, (Cawelo, herein) has informed North Kern Water Storage District, (North Kern, l]erein) that Cawelo has approximately 15,000 acre feet of State Contract Water available to it between the date hereof and December 31, 1980 which Cawelo wishes to make available to North Kern ~n exchange for future return of the water under the following terms and conditions: 1. Cawelo will make water available at requested rates of flow to North Kern in the Beardsley or Calloway Canals for which Cawelo will re- ceive from North Kern as an exchange fee $ 5.50 per acre foot. 2. North Kern will return to Cawelo an equal amount of water in the Lerdo Canal at mutually agreeable times and flow rates and all amounts returned to Cawelo shall bear an exchange fee to North Kern of $5.50 per acre foot escalated using the Implicit Price Deflator by taking the most current quarter of the Implicit Price Deflator divided by the index for the fourth quarter of 1980. 3. Water taken by North Kern and returned to Cawelo shall be designated as "10/80 Exchange Water"° If you find the terms of this agreement acceptable, would you note by signing the original and one copy and returning the copy to North Kern. Very truly yours, NORTH KERN WATER STOPAGE DISTRICT ACCEPTED AND AGREED CAWEI~ ~ ~TRICT ' Central Records LAW OFFICES ItATCIt .~ P.~RENT STANLEY C. HATCH A PROFESSIONAL CORPORATION AREA CODE 805 GERALD B. PARENT 21 EAST CARRILLO STREET TELEPHONE 963- 1971 S TIMOTHY BUYNAI~/JR POST OFFICE DRAWER 720 SUSAN F. PETF~OVICH SANTA BARBARA, CALIFORNIA 93102 PETER N. BROWN STEVEN L. EMMONB December 9, 1980 Mr. John Chafin City of Bakersfield '~ Water Department 1501 Truxtun Avenue Bakersfield, CA 93301 Dear John: As you requested I am enclosing a draft of a letter relating to the proposed Cawelo Water District/North Kern Exchange Agreement. I have not yet seen the Beardsly-Calloway ' Quitclaim Deed, but I have discussed it in some detail with Tom Stetson. After you have reviewed this we should talk about it further. Ver~ruly yours, STANLEY C. HATCH For HATCH AND PARENT SCH/lma Enclosure cc: Thomas Stetson Richard Oberholzer~,Esq. ~ ~ '.. DRAFT LETTER December 9, 1980 Board of Directors North Kern Water Storage District P.O. Box 1195 Bakersfield, California 93302 Re: Proposed Cawelo Water District/North Kern Exchange Agreement Gentlemen: We are in receipt of a letter from C.H. Williams, your Engineer-Manager, dated December 2, 1980, which transmits what purports to be an "executed letter-agreement" concerning an exchange of water with the Cawelo Water District. This transaction is in conflict with the provisions of the July 9, 1952 agreement between the Kern County Land Company, et al., and your District which allows you to use certain water rights now owned by the City of Bakersfield subject to specified limitations and conditions. That contract provides among other things: "7. Place of Use by District. Any and all water diverted by the District from the Kern River hereunder may be used within the present boundaries of the District, but not elsewhere." We note that the apparent effect of the exchange agreement is to deliver water from the Kern River to the Beardsley or Calloway Canals for use by Cawelo outside the boundaries of your District. As noted, this is explicitly prohibited by the contract. As a consequence, it will be necessary to formally request and obtain consent of the City of Bakersfield as the successor- in-interest to the Kern County Land Company and its subsidiaries under the 1952 agreement to waive its rights thereunder. It must be kept in mind that while the 1952 agreement allows your District to use Kern River water, the underlying rights associated with that water remain with the City of Bakersfield. ~age {wo 'Board of Directors ~'~Nort~.Kern~Water Storage District December 9, 1980 Under Paragraph 3 of the agreement any water not diverted by your District reverts to the City of Bakersfield. Under Para- graph 5 the City of Bakersfield specifically retains the rights to all waters which the District fails to divert or fails to use at any given time. Consequently, if your District does not use the Kern River water for the purposes and at the places specifically provided for in the contract, that water reverts to the City of Bakersfield. A non-instantaneous exchange which results in the utilization of Kern River water by another entity at a time when your District would not otherwise be using water could directly infringe upon the rights of the City under the agreement. We would need additional information to determine the extent or seriousness of such an infringement. We would also draw your attention to Paragraph 7 of the Agreement transferring the Beardsley Canal to your District (Quitclaim of Canal Easement Including Certain Appurtenances Thereto and Interest in Real Property dated re~F~!~ ~ , 1978). In tha~ contract it provides that the Beardsley and Calloway Canals cannot be used by your District for purposes "other than transportation of Kern River water for irrigation use within District boundaries . . . or to .carry out an exchange which provides for uses of irrigation water for such pur- poses . . ." unless certain conditions are complied with. The con- ditions involve joint consideration of any such proposed utilization, written notice of all meetings and negotiations and the inclusion of the City as a necessary party to any agreement to utilize the canal for such other purposes. It would also appear that, if you intend to use the Beardsley or Calloway Canal for the delivery of State Project Water under an arrangement, this would also require you to follow the procedures set forth in Section 7 of the 1978 agreement. In the absence of a formal consent to any such arrangement by the City, any deliveries by your District to Cawelo under the ~age £hree ~'Board of Directors ~.Nort~.Kern'Water Storage District December 9, 1980 proposed November 20, 1980 agreement, would have to be treated as excess diversions by Your District under Paragraph 4 of the 1952 agreement, which provides in pertinent part: "If the District shall ever divert from the Kern River more water than it shall be so entitled to divert at such time, then the amount of excess so diverted shall be deducted and withheld from the first water which the District otherwise would be entitled under this agreement to divert thereafter." We would remind your Board that we previously sent you a letter dated August 28, 1978 spelling out these principles in connection with an exchange you were contemplating with the Kern County Water Agency. Given your subsequent termination of consideration of that proposal, we assumed that you were fully aware of and understood the limitations on your right to use water from the Kern River under the 1952 agreement. If upon review of this letter you conclude you wish to proceed with the Cawelo exchange, we would ask that you file with the City a written request for approval of the exchange, the reasons therefor, and any mitigating factors about which we may be unaware, and we will promptly consider your request and give you a response. Very truly yours, JAMES J. BARTON ROSEDALE. RIO BRAVO _- ._. ,~ i1~A /~, ..... WATER STORAGE DISTRICT ..... 2623 "F" St., Suite L · P.O. Box 867 · Bakersfield, California 93302 · 325-4797 Water Board City of Bakersfield · City Hall .JAN 1981 1415 Truxtun Avenue Bakersfield, CA 93301 Gentlemen: Since receiving copies of Tenneco West, Inc.'s letter of August 20, 1980 to the City of Bakersfield, setting forth an agreement by the City to sell 100,000 acre feet of stored ground water, our Board has continued to discuss problems relative to use of the ground water basin in that area for storage. As you will remember, after the meeting of August 2, 1979, we sent a letter to the City which set t~forth our concerns about your program. (A copy of that letter is enclosed for your reference.) Those concerns remain. We recognize the City's efforts to work out a program for use of the ground water basin; none the less, to date no program has been agreed upon by all interested entities. The proposed sale of ground water points to the necessity for action in the near future. It is the position of Rosedale that the City's Kern River rights do not entitle the City to store Kern River water underground, hold title to that water, and then later sell it. While there may be merit in working out a management plan which would include the storage of natural flows, we think Such a plan must be accomplished with the agreement of all affected parties. It is our desire to continue to discuss these matters with you, as we strongly think it is essential that a management plan be established to deal with the many problems which we face in regard to use of the Kern River.and the ground water basin. We suggest that staffs of the interested entities be directed to forthwith meet and formulate a plan to present to our various governing bodies. We will look forward to hearing from you. Very truly yours, ROSEDALE-RIO B~AVO WATER ' ~a~~.~~~ s id e n t Enclosure  WATER STORAGE DISTRICT · 2623 "F St., Suite L P.O. Box 867 · Bakersfield. California 93302 · 325-4797 August 30, 1979 JAN !;5 1981 -~'¥ OF t~k~EI~FIEiJ~ ~EP~TMa,~r O~ WA~. Mr. ,]ohn Chafin City of Bakersfield Department of Water 1501 Truxtun Avenue Bakersfield, CA 93301 Dear John, These comments are in response to the meeting of August 2, 1979 in regard to the City's proposed program for the City's 2800 acres. We believe that these matters should be considered and a resolution of the problems reached before the program is implemented. The initial area of concern is identifying t~he water which would be available for the program. The July 18, 1979 outline, implies that the City may consider that water available on a short-term basis would be the water which could be percolated and recovered under the proposed program. This position would not seem to be consistent with what has historically taken place in replenishing the groundwater basin. However, as we understand the clarifications made by- Mr. Stetson and Mr. Hatch at the August 2, 1979 meeting, the City intends only that water which is truly surplus to Kern County, or "new water" would be considered as available for the proposed program. Therefore, it would seem that there would seldom, if ever, be Kern River water available, except that water which historically flowed out of the County. Thus, the only water normally · available for the program would be Friant Kern or other federal water, or state water. Th~ Kern River water which has historically left Kern County, and could properly be considered as water available for the proposed program, should be identified specifically so that there is ko question as to what water is in fact being referred to. To summarize, we believe that it is imperative that prior to the commencement of the program, and the percolal~ion of any water, that the water be iJentified as to source and quantity so that there is no question in that regard. Of course, waters which historically would have gone into the basin in any event, should still be percolated in one or more of the historical percolation areas; however, we do not believe it appropriate for any entity to make claim to that water for recovery purposes. Mr. John Chafin CiOty tof Bak~rsfield August 30, 1979 Page Two A second general area of concern, which we do not believe has adequately been addressed, is the problem of underground movement of water. Although it is . possible that in the broad sense, the water which in fact does reach the under-' '" ground _water tables does remain captured until extracted, it is clear that the underground water basin for the Kern River fan extends far beyond the proposed area of inclusion for the City program.. Further, we believe that all studies confirm that the underground flow gradient for the fan area carries water, over a period of time, outside of the geographic limits of the area proposed in the City's program. As a result, water that is put into the ground in one year simply will not be there at some time in the future. Simply stated, the bank . ,'. that you are proposing to use has a hole in the..vault which allows the water to - flow out over a period of time. There are several other, points which should be consi.dered in dealing with the extraction portion of the program. First, we believe it clear that there are presently adequate wells available ~overlying the fan area to provide all necessary extraction, and that it is totally unnecessary to drill additional wells simply for extraction purposes under this program. The impact of new wells on the environment general~ly and on the groundwater table in the specific area of the 2800 acres is not k.~own, however, it would seem quite clear that a large pumping effort in a small confined area would cause a fairly substantial adverse effect on the surrounding area. We also concur, as was pointed out at the August 2, 1979 meeting, that no single entity has a right to control use of the water extracted from the program, We also agree that the water should not be exported from Kern County. In regard to the proposed $3,00 per acre-foot fee or spreading charge that the City is proposing, based on Rosedale's experience in percolating water over the last 15 years or more, we feel that a more realistic capital cost figure for owning a percolating facility on a 50-year life basis would be $.21 per acre foot. We of course will be more than happy to provide background material used in arriving at this figure. We are hopeful that the above questions and comments can be clarified in short order ,,so ,that we can move forward with a desired comprehensive groundwater manage- ment program. We are presently attemptin, g to formulate our ideas in this area. AS we understand it, upon your receipt of 'con~nents from all of the interested entities, you will then disseminate the same, and then arrange for another meeting to discuss the various items of concern. We will look forward to hearing from you in that~ regard. Very truly yours, ROSEDALE-RIO BRAVO WATER STORAGE DISTRICT Mary E./Col 1 uP Manager . . DEPARTMENT OF WATER AUgust 28· 1978 Board of Directors North Kern Water Storage District P. O. Box.l195 Bakersfield, California 93302 Re: Possible Delivery of Kern River Water to Kern County Water Agency Gentlemen: It has come to our attention that your District may be considering a possible sale or exchange of Kern River water to or with the Kern County Water Agency. We would like to take this opportunity to remind you of two very important provisions of the July 9, 1952 Agreement for Use of Water Rights under which your District exercises its rights to divert and use Kern River water. "6. Purpose of Use by District. Any and all waters which shall be diverted by the District from the Kern River pursuant to this agreement may be used for the purpose of irrigation, stock watering and underground water replenishment and for no other purpose or pur- poses whatsoever." "7. Place of Use by District. Any and all waters diverted by the District from the Kern River here- under may be used within the present boundaries 'of the District, but'not elsewhere." Since the companies that entered the agreement to allow your District to use Kern River water retained and reserved to themselves'and their successors in interest the right to use the Kern River water not B~ard of Directors. North Kern Water Storage District August 28, 1978 Page Two diverted by your District in accordance with the provisions of the 1952 Agreement and~since the City of Bakersfield is the successor in interest of those retained and reserved rights, the City will not look with favor upon any attempts of your District to allow such Kern River water to be used, directly or indirectly, outside of the 1952 boundaries of your District~or to allow such Kern River water to be used for any purpose within the 1952 boundaries of your District other than those specified in the 1952 Agreement. By this letter you are put on notice that any use of Kern River water under the said 1952 Agreement which deviates from the express terms of that agreement will be considered as an infringement on the rights and property of the City of Bakersfield. Sincerely, ' Don~ald~A ~~'~-~- ~.~Cairma City of Bakersfie~dhwaternBoard ......................... DAR: lh .~ ~.~ ~ .,~ ',~. -.-',. APPROVED AS TO FO~: /,-'? ..... --'.-.--./. City Attorney' NORTH KERN WATER STORAGE DISTRICT 1415 . IBth STREET. ROOM 705 BOX 1195 BAKERSFIELD, CALIFORNIA 93302 (805) 32~-3116 December 9, 1980 Mr. John Chafin, Manager City of Bakersfield Water Department 1501 Truxtun Avenue Bakersfield, CA 93301 Dear John: Enclosed are three copies of Assignment with reference to a Letter Agreement for the sale of Kern River Water, No. 76-61, and three copies of Assignment with reference to a Letter Agreement dated August 20, 1980, No. 80 24 W.B. Please have the six Assignments signed and return two of each executed Assignment to our office. We will mail one to Tenneco West, Inc. Very truly yours, C. H. Williams Engineer -Manager ch enclosures ~'" ASSIGNMENT ThiS Assignment is dated as of and effective September 1, 1980,'by and between TENNECO WEST,INC., a Delaware corporation, herein called "Assignor" and The JAS~S-PIONEER IMPROVEME~:~ DISTRICT OF THE NORTH KERN WATER STORAGE DISTRICT, a California Water Storage District, hereinafter called "Assignee". Reference is made to a Letter Agreement for the Sale of Kern River Water, No. 76-61, between the City of Bakersfield and the Kern-Tulare Water District ("the District"), wherein the City agreed to sell and the District agreed to purchase quantities of water. Reference is also made to an Agreement of Assignment dated as of and effective January 1, 1978, wherein the District assigned to Assignor certain rights to purchase quantities of water under the said Agreement with the City of Bakersfield. Copies of said Agreement and Agreement of Assignment are attached hereto and made a part hereof as Exhibits A and B. WHEREAS, Assignee desires to acquire all of Assignor's right, title and interest under'said Agreement and Assignor is agreeable to such an assignment, upon the following terms and conditions. NOW THEREFORE, the parties agree as follows:. .1. Assignor' does hereby assign, sell-and' transfer to Assignee, all of_ Assignor'-s right~ title and interest in and to said Agreement as acquired under and by virtue of said Agreement of Assi'gnment and the corresponding rights to purchase water thereunder. 2. Assignee agrees to accept such assignment and to be bound thereby as fully as though said Assignment had been made directly to it. 3. This ..' assignment shall in no manner be effective unless and until ratification thereof has been obtained from the City of Bakersfield' iN WITNESS WHEREOF, each of the parties through its duly authorized Officers, have executed this Assignment and acceptance of assignment as of the date first hereina~tten. NNECO WEST,INC. !//~<) Vi~ President 'AssistaSt Secretary "Assignor" JAMES-PIONEER IMPROVEMENT DISTRICT of the NORTH KERN WATE~STORAGE DISTRICT and by "Assignee" APPROVED AS.TO FORM: CITY OF BAKERSFIELD WATER BOARD '? City Attorney Chairman [~/a" ///-r?/C /t . .:. ? AGREEMENT NO. 76-61' " 8 AG~E~T FOR 9 THE S~E OF KE~ RI~R WA~R 10 BY ~D BE~N 11 CITY OF B~RSF~LD 13 KE~-TULA~ WATER DISTRICT " !5 16 18 19 20 21 22 2~ 24 25 26 27 EXHIBIT AS S I GNMENT This Assignment i's dated as of and effective September 1, 1980, by and between TENNECO WEST, INC., a Delaware corporation, herein called "Assignor" and The JA~S-PIONEER IMPROVEMENT DISTRICT OF THE NORTH KERN WATER STORAGE DISTRICT, a California Water Storage District, hereinafter called "Assignee". Reference is made to a Letter Agreement dated August 20, 1980, No.80-24 W.B., between the City of Bakersfield and Assignor, wherein the City agreed to sell and Assignor agreed to purchase, 100,000 acre feet of water in place, in the.underground water basin located in the City's spreading grounds between Renfro Road and Interstate Highway 5 in and adjacent to the Kern River, upstream from Second Point of Measurement. A copy of said Letter'Agreement is attached hereto and made a part hereof as Exhibit A. WHEREAS,° ~'sOign~' desires to acquire all of Assignor's right, title and interest in and under said Agreement and Assignor is agreeable to such assignment, upon the following terms and conditions. NOW THEREFORE, the parties agree as follows: 1. Assignor does hereby assign, sell and t~ansfer to Assignee, all of Assignor's right, title and interest in and to said Letter Agreement and the.corresponding rights to purchase water thereunder. 2. Assignee agrees to and does hereby accept such assignment and to be bound thereby as fully as though having been named ~.. in said Letter Agreement' originally as the purchaser of said ..;~' Water rights. /. 3. This assignment shall in no manner be effective unless and .~. . until ratification thereof has-been obtained from the City IN WITNESS WHEREOF, each'of the parties through its duly authorized OfficerS, have executed this Assignment and acceptance of assignment as of the date first ten. WEST,INC. SEAL Lnd~ ' ' "Assignor" ?' -.'~ .,. JAMES-PIONEER IMPROVEMENT DISTRICT '~ ~_ of the NORTH KERN WAT STORAGE ...... '. _ _ A/ss.ignee'' APPROVED AS TO FORM: CITY OF B~KERSFIELD WATER BOARD City Attorney Chairman Tenneco E~ecu~,ve Wee President 8 0 - 2 4 ~a~. B. August 20, 1980 Attention': Mr. John E. Chafin,.Water ~4anager. ' Gentlemen: This l~tter is for t~e-purpose of setting forth the Agreement 6etween the City of Bakersfield ("City") and Tenneco West, Inc. ("Tt~I") to purchase additional water from the City this year. It is understood that prior to November 1980 the City will have stored in excess of 100,000 acre feet by delivery and per- colation into the groundwater basin in the City's spreading grounds between Renfro Road and Interstate Highway 5, in and adjacent to the Kern River, upstream from Second Point of Measurement. - · City hereby agrees to sell and TWI hereby agrees to purchase from City 100,000 acre feet of said water in place. The price for said water shall be $3.00 per acre foot, payable '~.- by TWI to the City in the amount of $300,000.00 on January 10, 1981; or in the alternative, at TWI's option, in the amount of $100,000.00 on January 10, 1981, with the balance payable'in two equal installments on January 10, 1982 and January 10, 1983, with interest on the unpaid principal at nine percent (9%) per annum, payable with each installment This Agreement shall not be construed as establishing a prece- dent for the sale of future water stored by City in said spread- ing grounds to TWI. If this letter adequately sets forth our joint understanding of this matter, we would appreciate an appropriate representative of the City signing on the approval line below. Very truly yours, APPROVED: APPROVED AS TO FORM: Ke neon W. Hoagland~. City Attorney In the 1980-81 Agricultural Water Enterprise operation $90,000 was budgeted to be transferred to the City's General Fund if revenues exceeded operations, maintenance, administrative and debt service requirements. Since 1980 yielded an above-average water supply, revenues were also above the normal water year income. Because of these conditions, it is requested that $90,000 Of the unin- cumbered current fiscal year Agricultural Water revenues be transferred to the City's General Fund. It is our understanding that this transfer would begin repayment to the General Fund for original acquisition costs incurred for the legal, engineering and financial requirements necessary to purchase and secure the Kern River water rights and Ashe Water facilities from Tenneco West, Inc. If approved by Water Board action on January 14, 1981, we would recom- mend the transfer of the budgeted amount from the 1980-81 Agricultural Water Enterprise budget to the City General Fund. If you have any questions re§arding this matter, please call me. .Mr. Gilbert H. Castle General Manager Kern Delta Water District P. ~. Box 155 -/ Del Kern Station Bakersfield, CA 93307 .Re: ~-Kern Delta 1981 Extra Surplus State Water .~Program Exchange Dear Mr. Castle: You were kind enough to send the City a copy of..your letter to the North Kern and Buena Vista Water Storage Districts, the Kern County Water Agency and J. G. Boswell Company dated January 5, 1981. Given the close relationship between first point water rights and use, the City of Bakersfield is an important party to any such arrangement. Despite this fact, the City's staff was not aware of the discussions which led to this proposal until your January 5, 1981 letter was received. The City does not oppose the arrangement as such. The proposal does, however, raise a number of difficult problems which will have to be resolved before it can be implemented. One difficult problem has to do with the establishment of a Kern Delta "bank account" with North Kern and the subsequent withdrawl by Kern Delta of that water by means of an exchange using North Kern's Kern River entitlement. Given existing "release-back" arrange- ments, any Kern River entitlement not actually used by North Kern is reserved to the City of Bakersfield. Further, North Kern's entitlement water cannot be used outside the boundaries of North Kern without the consent of the City of Bakersfield. There may be other problems. We mention these matters not with the intent of being obstructions ists but to point out what appears to be a pervasive and ongoing problem: each of the "first point" entities have been coming up with plans and proposals which of necessity, involve the water rights of the others. Each_time these proposals are raised the Mr.. Gilbert~H. Castle '~.January 14, 1981 Page Two problems are dealt with on a piecemeal basis requiring either temporary resolution or no'resolution at all. It seems self evident that the "first point" interests must sit down and hammer out a harmonious working relationship so that each entity will have a full and complete understanding of the effect of the actions of the others on its own water supply.' . ~- 'At a recent meeting'between myself and the chairman of the Board of Directors of the North Kern and Kern Delta Districts, I under- stood the consensus to be that we should reinitiate new meetings among representatives of the three "first Point" water using entities. It was suggested that Mr. Chafin coordinate this effort. Your recent proposal':once~' again underlines the importance of our proceeding with such meetings without delay. Consequently, I am asking Mr. Chafin to contact the managers, attorneys and engineers of the three entities to attend a meeting at the earliest date to begin the process of identifying and resolving the outstanding issues among us. Until all three entities have had an opportunity to review their relationship it is premature to take further action on specific proposals. Consequently, we would suggest that the Kern Delta program be held in abeyance until it can be discussed further at the meeting. Very truly yours, ~ames' J. Barton, Chairman City of Bakersfield Water Board JJB:lh cc: Mr. Milo Hall Mr. Chuck Williams North Kern Water Storage District P. O. Box 1195 Bakersfield, CA 93382 Mr. Wallace Houchin Mr. Harold Russell Buena Vista Water Storage District P. O..=Box 756 Buttonwillow, CA 93206 Mr. Stan Willis Kern Delta Water District P. O. Box 155 Del Kern Station Bakersfield, CA 93307 ~'~ Gilbert H. Castle January 14, 1981 Page Three cc: Mr. Tom Hurlbutt J. G. Boswell Company P. O. Box 9759 Bakersfield, CA 93309 Mr Stuart Pyle Kern County Water Agency P.' O. Box 58 Bakersfield, CA 93382 January 14, 1981 Mr. Gilbert H. Castle General Manager Kern Delta Water District P. O. Box 155 Del Kern Station Bakersfield, CA 93307 Re: Kern Delta 1981.EXtra Surplus State Water Program Exchange Dear Mr. Castle: ,~ , You~'were kind enough to send~,~ a copy of Your letter to the North Kern and Buena Vista Water Storage Districts, the Kern County Water Agency and_~ .... ~._.Boswell.Company dated re±ationsnip between ~irst poin{ ~ter rights ana use, a~ the City's staff was ngt aware of the disc%ssions /which led to this proposal until yo~r January 5, 1981 letter was received. The City does not oppose the arrangement as such. The proposal does, however, raise a number of difficult problems w~i~w~ll have to be resolved before it can be implemented. ~~ difficult problem has to do with the establishment of a Kern Delta "bank account" with North Kern and the subse- quent withdrawal by Kern Delta of that water by means of an exchange using North Kern's Kern River entitlement. Given existing "release-back" arrangements, any Kern River entitle- ment not actually used'by North Kern is reserved to the City of Bakersfield. Further, North Kern's entitlement water cannot 5e used outside the boundaries of North Kern without~ the consent of the City of Bakersfield. We-mention these matters not with the intent of being obstructionists but to point out what appears to be a pervasive Mr. Gilbert H. Castle January 14, 1981 page 2 and ongoing problem: each of the "first point" entities have been coming up with plans and proposals which of necessity, involve the water rights ~of the others. Each time these pro- posals are raised the ~roblems are dealt with on a piecemeal basis requiring either temporary resolution or no resolution at all.' It seems self evident that the "first point" interests must sit down and hammer out a harmonious working relationship so that each entity will have a full and complete understanding of the effect of the actions of the others on its own water supply. At a recent meeting between myself and the Chairman of the Board of Directors of the North Kern and Kern Delta Districts, I understood the consensus to be that we should reinitiate new meetings among representatives of the three "first point" water using entities. It was suggested that Mr. Chafin coordinate this effort.~. Your recent proposal once again underlines the importance of our proceeding with such meetings without delay. Consequently, I am asking Mr. Chafin to contact the managers, attorneys and engineers of the three entities to attend a meeting at the earliest date to begin the process of identifying and resolving the out- standing issues among us. Until all three entities have had an 0ppgrtunity to review their relationship it is premature to take further action on specific proposals. Consequentl~ we would suggest that the Kern Delta program be held in abeyance until,it can be,discussed further at the meeting. ~ Very truly yours, James J. Barton, Chairman, Bakersfield Water Board cc: Mr. Chuck Williams North Kern Water Storage District P. O. Box 1195 Bakersfield, Mr. Harold Russell Buena Vista Water Storage District P.O. Box 756 Buttonwillow, CA 93206 Mr. Gilbert H. Castle .January 14, 1981 page 3 cc: Mr. Tom Hurlbutt J.G. Boswell Company.? P. 'O. Box 9759 Bakersfield, CA 93309 Mr. Stuart Pyle Kern County Water Agency P.O. Box 58 Bakersfield, CA 93382 ITEMS FOR AGENDA JAN? 1981 Agenda Sect ion NE)V- BUSINESS ~A~ENT OF WAl~ Requesting 0apartment PUBLIC WORKS DEPARTMENT Date for Water Board Action JANUARY 1.4, 1981 1. Description of Item: Hainline Extension Agreements for various Tract and Parcel Haps within the Ashe Water System. 2. Comments: The .Public Works Department has reviewed the agree- ment and recommends acceptance. Suggested Action: Acceptance of executed agreements. · 4. Attachments: ~irector of/,PubJi~ Works NOTE: Items for Water Board Agenda are to be submitted prior to 10 a.m. Friday for the Wednesday meeting of the following week. MAINLINE EXTENSION AGREEbIENTS TENNECO REALTY BEVELOPSIE~rr CORPORATION WATER TENNECO TRACT OR AGREL~IENT NUMBER BOARD' CONTKACT PARCEL 5h%P REFUND OF NLg'IBER NLgIBER NUMBER AMOUNT SERVICES 80-06 79-01 TR4080 $97,452.15 87- 80-08 79-03 TR4082 84,861.73 93 80-14 80-01 TR4141 1.6,106.07 37 80-15 80~02 PM5197 16,616.87 2 80-35 80-09 TR4220 82,719.58 101 ~l.o%w~ 80-12 TR4277 Unit 6 Est. 36,897.06 46 80-38 80-20 TR4223' 63,141.22 56 ~l_o¥~B 80-22 TR4221 40,417.24 45 ~oS~ 80-23 PM5701 24,S82.34 4 ~/,~J~ 80-28 TR4277 Unit 5 Est. 51,204,84 64 8/'oTt'~ 80-30 TR4277 Unit 1 Est. 50,988.01 13 80-44 80-13 PM5797 8,940.04 1 80-47 80-16 PMS714 48,429.16 176 ~/-~/~ 80-17 TR4277 Unit 4 Est. 47,529.47 Est. 48 TOTAL - $669,975.78 773 ERROR IN CALCULATION - ESTIMATED COST SHOULD BE $68,632.00 1/ 2/8 ag