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HomeMy WebLinkAbout04/29/81 AGENDA WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, APRIL 29, 1981 4:00 P.M. Call meeting to order Roll Call - Board Members: Barton, Payne, Ratty, Kelmar, Oberholzer 1. Election of Officers. - FOR BOARD ACTION 2. Water Board adoption of procedural rules. 3. Scheduled Public Statements 4. Correspondence ~/a) Letter and draft agreement from North Kern Water Storage District (J.P.I.D.) regarding participation in City's 2800 acre spreading operations. 5. City water activities update by consulting attorney Stanley Hatch. - FOR BOARD INFORMATION: ~/a) Reorganization of Improvement District ~4. b) Update on Kern River riparian research above First Point of Measurement. 6. Agricultural Water Enterprise 1981-82 OPERATING BUDGET; proposed 1981 WATER PRICE AND ~SAND SALE SCHEDULE and establishment of a Water Enterprise GENERAL FINANCIAL RESERVE ACCOUNT. - FOR BOARD ACTION. 7. Update on KERN RIVER LAND USE STUDY by Dale Hawley, Director of Public Works. 8. Staff Comments 9. Board Comments 10. Adjournment , .~ -' NORTH KERN WATER STORAGE DISTRICT " 141.5 - 18th STREET, ROOM 705 '' i'~" i~'. i: ', ,'> " sox 1~95 BAKERSFIELD, CALIFORNIA 93302 April 22, t98t Mr. John Chafin, Manager City of Bakersfield Department of Water 1501Truxtun Avenue Bakersfield, California 93301 Re: North Kern Arrangements With The City of Bakersfield Dear John: The purpose of this letter is to follow-up on that letter and draft agreement which was transmitted to you on August 29, 1980 and to transmit to you a new draft which is a little more comprehensive in covering some of those areas which we have recently discussed. One area of our recent discussions is regarding that area of high ground located adjacent to the James-Pioneer Improvement District and the Stephens Branch of the railroad in Section 8, of 30/26 which cannot be effectively served from the Kern River Channel (and is thought to be a practical area for spreading operations when water is available from the Pioneer lateral ditch). This, as you know, would take a considerable amount of work and we are proposing at some point in time of coming up with an arrangement where North Kern would do that work under license from the City. If at some point, it is thought that Rosedale-Rio Bravo Water Storage District should choose to join with North Kern in such an arrangement with the City, we would be receptive to that. However, to expedite matters, we have prepared the draft as though we were the sole party. After you have had an opportunity to read through this material and would like to get together and discuss it further, please let me know. Very truly yours, C. H. Williams Engineer-Manager attachment cc (w/attachment): ~el Jans CHW:lm 4-23-81 cc: S. Hatch w/a T. Stetson This agreement made and entered into this day of 1981, by and between the City of Bakersfield, a municipal corporation, hereinafter referred to as "City", and North Kern Water Storage District and its Improvement Districts, hereinafter referred to as "North Kern". WITNESS, WHEREAS City owns approximately 2800 acres of spreading areas adjacent to Kern River west of the City of Bakersfield, and WHEREAS said 2800 acres of City land is within and near the center of the southerly portion of North Kern, and WHEREAS City has certain additional water supplies available to it, and WHEREAS North Kern is interested in purchasing additional surt~ace and underground water supplies as well as in utilizing City's spreading areas for its purposes. NOW THEREFORE in consideration of the mutual covenants contained herein, the parties hereby agree as follows: Section 1. This agreement shall have a term of 50 years commencing on the effective date hereof. Section 2. The City agrees to sell to North Kern when available additional surface and underground water supplies available to City. The price to be paid for such water by North Kern shall be based upon the annual sales by City for similar types and uses of water. It is contemplated that there shall be a different price for water used for urban, agricultural, gr6~ndwater replenishment and extraction purposes. North Kern shall have a right of first refusal to purchase all such water except for water committed to others by contracts existing prior to August 29, 1980. 4/22/81NK Section 3. NOrth Kern agrees that water supplied by City under this agreement shall be utilized within the boundaries of North Kern during the term of this agreement. Section 4. City shall make available to North Kern ,its 2800 acre spreading pond at times City is not using said facilities provided such use is not in conflict with any other use granted to others by a contract executed prior to the effective date of this agreement. Section 5. North Kern agrees to pay a pro rata share of the operation, maintenance, spreading and record keeping costs that City incurs ~" on behalf of North Kern's operation. Said pro rata share shall be determined .... -"~. in proportion to the amount of North Kern water spreading to the total water -' spread on C~ty's 2800 acres projected over the following five years. Adjust- .~ ment shall be made at the end of each three year period to establish a payment schedule as nearly as possible to the average use of the City facilities. Section 6. North Kern hereby agrees to make all payments to City within 60 days of receipt of statement from City. IN WITNESS hereof, the parties hereto have executed this contract on the date first above written. NORTH KERN WATER STORAGE DISTRICT CITY OF BAKERSFIELD By By. (2) .George W; Nickel, Sr. Star Route 4, Box 801 ' Rio Bravo Annex _,~ Telephone 8051366-5581 ~[¥ OF 8~KE~Si:IELD OF WATE.'-, ^pril 29, 1981 Water Board - City of Bakersfield 150) Truxtun-Avenue Bakersfield, CA 93301 Gentlemen: I am writing this note to you as the appointed representative of the Olcese Water District and also as a substantial land- owner within the City. I understand that with the re-creation of the Water Board, you will likely adopt new policies and procedures. If this is so, I would particularly like to recommend that you consider appointment of an advisory committee that can report regularly to you on matters that the individual advisory committee members are most familiar with. Water in Kern County and in the City of Bakersfield is a complicated subject that deserves a cross-section of attention. I would like to suggest that at least some members of the advisory board would be made up of representatives to be designated from time to time by California Water Company, the Olcese Water District and Improvement District #4 of the Kern County Water Agency. I note on your Agenda for today there will be consideration of a letter and draft of agreement from the James Pioneer Improvement District of the North Kern Water Storage District regarding participation in City's 2800 acres spreading operations. I, of course, do not yet know the contents of the letter and draft of agreement; however, I hope that it will be to present a program wherein the Principal, if not the sole, landowner in the James Pioneer Improvement District, namely .Tenneco, will bring in sufficient supplemental water, from outside sources to offset the underground water take of the approximate 90 Tenneco wells nearby or adjacent to the City's 2800 acre spreading area. At present, Tenneco constitutes a major threat to the City having a successful conjunctive use program and utilization of the City spreading area. I will fully endorse any program under which Tenneco will offset its underground water take by bringing in outside supplemental water. I would hope that a solution of the Tenneco underground water take problem will be a primary consideration of the new Ci~t.~ Water Board. ~-?! .?,~ '/ . ~-:.-- . George W. ~ckel, dr. GWN: rjp REORGANIZATION OF KERN COUNTY WATER AGENCY TO PERMIT GOVERNMENT OF IMPROVEMENT DISTRICT BY INDEPENDENT BOARD OF TRUSTEES. I Formation A) Public hearing following 1) Petition to Kern County Water Agency by 15% of property owners within Improvement District; or Resolution of Board of Directors of Kern County Water Agency B). Special Election - Five Trustees 1) Four Divisions - One 'Trustee, property owner within division represented, elected by voters of each 2) One Trustee - elected at large C) Administrative Regulations governing Board of Directors of Kern County Water Agency applicable to Board of Trustees II Ongoing Operation/Powers A~ Scope -- all powers of Kern County Water Agency re Improvement District works withiD Improvement District and works paid for with~Impr0~ement~.~t District funds 1) Limitation -- Kern County Water'Agency retains ultimate control (if Improvement District fails to meet obligations) re contracts with United States and State of California B) Property 1) Existing facilities to be transferred by Kern County Water Agency and held by Improvement District 2) Acquisition of new Improvement District facilities in Improvement District's name C) Status re State Water Project - Member Unit/Kern County Water Agency D) Sources of Financing 1) Existing: Funds held by Kern County Water Agency for benefit of Improvement District to be transferred to Improvement~District control 2) After Reorganization a) Not requiring further voter approval i) Water sales, ii) Pump charges (if authorized by resolution forming Improvement District) iii) Zone 7 ad valorem tax (State Water Project repayments) iv) Treatment plant G.O. bond repayments b) Additional financing if~voter approved' i) Loans from Kern County Wa~er Agency ii) Ad Valorem property tax iii) Bonds iv) Contracts with United States and/or State - Zones of Benefit v) Proposed legislation - 1981 - re special benefit assessments MEMORANDUM Apr±l 22, 1981 FROM Attached for your information and review is the proposed 1~81-1982 Agricultural Water Enterprise Budget. This year the budget consists of 3 major components that will require three separate actions by the Water Board and confirmation by the City Council. These components are as follows: t. 1981-1982 "OPERATIONS and CAPITAL OUTLAY BUDGET." ~Attached to the operations budget is a schedule showing the source of estimated 1981-1982 revenues and a .s~mmnry explanation of the cost centers associated with the operating budget. As you can see from the attached budget, the 1981-1982 fiscal Year is estimated to be deficient ($86,790) due 'to the fore- casted low water supply yield. These low-income below-normal water.years were anticipated when the original water rights acquisition was made by the City. Since 1977, sufficient re- serve funds have been accumulated to meet the estimated 1981- 1982 deficiency. The formalization of this reserve account is explained in item #3 below. 2. "1981'~WATER PRICE & SAND SALE SCHEDULE" recommended for approval which!~would remain in effect until water supply conditions warrant adjustment of these prices. 3. Establishment of a "GENERAL FINANCIAL RESERVE ACCOUNT" within the Agricultural Water Enterprise function to provide funding during dry. year, low income periods; and to provide a contin- gency fund for emergencies and/or natural disasters. A sum- mary explanation of the General Financial Reserve and a recon- ciliation of the Agricultural Water Enterprise function 1977 through June 1982 is attached for review. GB: ss attachments xc: Phil Kelmar W. D. Higginbotham CITY OF BAKERSFIELD AGRICULTURAL WATER ENTERPRISE Estimated Revenues and Expenses ~-For the Period 07/01/81 to 06/30/82 Estimated *~ Actual Current Fiscal Year Fiscal Year OPERATING BUDGET 1980-1981 1981-1982 Revenues From Operations ................................... $2,384,330 $2,175,300 Operating Expenses Field Expenses: Wages and Employee Benefits ...... U. S. Corps of Engineers 0 &'i~l'"i~:g'~;~l~gliJ' :: : :. :: $ 472,990 $ 529,750 · · · 30,250 30,250 Maintenance Expense ...................................... 96,330 80,000 Weed Control ............................................. 24,480 25,000 Charges From Vehicle Pool ................................ 155,040 183,300 Charges From General Services Department ................. 3,230 3,500 Expenses Reimbursed-Clearing Accounts (Joint Facilities).. (92,500) (90,000) Total Field Expenses ................................. $ 689,820 $ 761,800 Administrative ExPenses: Consultants - Engineering and Attorney ................... $ 112,000 $ 115,000 Department of Water Resources - Snow Survey .............. 4,020 4,450 U S B R - Contract Administration 550 550 Self Insurance - Liability & Property Damage Reserve ..... 25,880 27,200 Charges From Administrative Departments .................. 7,200 7,800 Field Office - Rents & Related Expenses .................. 35,550 39,500 Property, In Lieu & Possessory Interest Taxes ............ 33,200 33,500 Cloud Seeding Participation .............................. 21,550 25,000 Kern River Investigations (Power Filings, .Entitlements, etc.) 10,200 12,000 Misc. General Expense (Assoc. Dues, Security, etc.) ...... 34,600 38,000 Total Administrative Expenses ........................ $ 284,750 $ 303,000 Net Operating Income Before Depreciation ................... $1,409,760 $1,110,500 Depreciation ............................................. (140,000) (148,000) Net Operating Income (Loss) ................................ $1,269,760 $ 962,500 Non-Operating Expenses 1976 Water Bonds - Interest .... i: .......................... $ 802,790 $ 788,240 1976 Water Bonds Principal ............................. 235,000 250,000 1965 NKWSD - Isabella Bonds - Interest & Fees ............ 29,600 28,150 1965 NKWSD - Isabella Bonds - Principal .................. 36,250 37,500 Less: Amortization of Bond Premium ...................... (1,100) (1,!O0) Less: Rental of Isabella Storage Space .................. (78,800) (53,500) Total Non-Operating Expenses ......................... $1,023,740 $1,049,290 Net Income (Loss) Before Capital Transfers ..... · ............ $ 246,020 $ (86,790) 1) Repayment of Organization Acquisition Cost ........... 90,000 ~ 1) Transfer to Capital Improvement Budget ............... 156,020 ~ NET INCOME (LO_iS_)_. ............................... $ ~ $ (86,790) 1) Repayment and transfer to capital improvement budget are predicated upon receipt of estimated revenues during fiscal year. Page Two CITY OF BAKERSFIELD AGRICULTURAL WATER ENTERPRISE Estimated Revenues For the Period 07/01/81 to 06/50/82 Estimated Actual Current Fiscal Year Fiscal Year 1980-1981 1981-1982 Sales to Five (5) Major Districts ........ $1,430,330 $1,416,000 Kern River Canal & Irrigating Co. Sales.. 104,775 110,500 Lake Ming Agreement (County of Kern) .... 4,700 4,700 Oilfield Discharge ...................... 11,800 12,600 Annual Pumping Agreements ............... 4,100 4,200 Temporary Pumping Agreements ............ 800 1,000 Borrow-Payback Exchange Fee ............. ¢' 158,100 Miscellaneous Irrigation Water Sales .... 529,900 83,200 Non-Kern River Water Sales .............. 22,000 52,000 Groundwater Sales ....................... 100,000 118,000 Sand Sales .............................. 15,925 25,000 Interest Income ......................... 160,000 190,000 TOTAL Estimated Revenues .......... $2,384,330 $2,175,300 Page Three CITY OF BAKERSFIELD AGRICULTURAL WATER ENTERPRISE Capital Outlay Program For The Period 07-01-80 to 06-30-82 Fiscal Year 1981-1982 Source 'of Funds Water Revenues in excess of 1981-1982 Budget estimate ..... $690,000 Proposed Application of Funds 1) Replacement of Carrier Weir 18-0-507 (F.S.A.) .......... $190,000 2) Construction of River Canal Spillway @ P.T.O ........... 95,000 ~ - 35'~'-i~P~'~ts'~to Kern River Canal & Irrigating Company Laterals .................................. 25,000 4) New ~ Replacement Fencing on Carrier and River Canal ... 85,000 S) 2800 Acre Basin and River Bed Properties Improvements .. 175,000 6) Public Works storm drain construction projects ......... 120,000 TOTAL CAPITAL EXPENDITURES 1981-1982 .................. $690,000 Actual Construction is predicated upon receipt of revenues in excess of 1981-1982 budget. ? ; , . .. Page Four CITY OF BAKERSFIELD AGRICULTURAL WATER ENTERPRISE Explanation of Operating Expenses For Curreni Fiscal Year ~ages & Employee. Benefits Based on present staff size with allowance for increment step raises and temporary help when required. U.S. Corps of Engineers O & M - Lake Isabella This expense is based on the actual operations and maintenance charges reevaluated every five years. For the period 1979-1983 City's share of the annual charge will be $30,250. Maintenance Expense Those expenses included are for specialized equipment such as; gradalls, draglines, etc., also includes steel, weir boards and other contract expenses and materials incurred for maintenance. Weed. Cont-r.ol ......................... ~ Annual charges made for herbicides and other chemicals, contract labor and equipment used to control weed growth on ditch banks and canal right- of-ways. Charges From Vehicle Pool This figure represents the rental costs as charged by the equipment division of Public Works for fueling, maintenance and replacement of Agricultural Water vehicles and heavy equipment. Charges From General Services Department Charges incurred for metal fabrication, machine work and carpentry for various construction projects. Includes labor and materials. Expenses Reimbursed -.Clearing Accounts (Joint Facilities) Moneys collected from other water districts for their proportionate share of labor and equipment costs incurred for recordkeeping and the operation and maintenance of jointly owned facilities. Consultants - Engineering & Attorney Fees Expenses incurred for technical and professional assistance provided by water attorney and engineering firms. Department of Water Resources - Snow Survey This expense covers City's share of the California Cooperative Snow Surveys Program in cooperation with other Kern River interests to fore- cast water supplies. Page Five U.S.B.R. - Contract Administration ~nder existing agreements, the City is responsible for 34% of the annual charge of the Bureau for administrating the Isabella Reservoir contract. Self Insurance - Liability & Proper~ty Damage Reserve This covers Agricultural Water Enterprise premium share for self-insured costs as quoted by Finance Department. Charges From Adminis.trative Departments These are charges made by other departments, such as; Data Processing, Finance, Personnel, etc. Field Office - Rents & Related Expenses This includes expenses for rents of office space and equipment, maint- enance for communication equipment, office supplies, utilities, etc. Property, In Lieu and Possessory Interest Taxes Taxes for real property and facilities operated by the Agricultural Water Enterprise and those Possessory Interest Taxes associated with Storage Rights at Lake Isabella. Cloud Seeding Participation City'~s s~-~-e"~- ~nnuai~-~ostS~'associated with cloud seeding operations on Kern River Water Shed. Kern River Investigations (Power Filings, Entitlements, etc.) Those specific items in which City has pursued investigations to pre- serve and protect it's Kern River operations and entitlement structure.- Miscellaneous General Expenses Charges included are dues to organizations, literature, professional security agencies, travel expenses for out-of-town meetings, training programs, etc. Depreciation A schedule of depreciation was established on December 22, 1976 based upon the estimated life and replacement value of those physical assets acquired from Tenneco West, Inc. This depreciation schedule will change as new capital assets are added and others are deleted from asset inventory. 1976 Water Bonds General obligation bonds issued for purchase of Kern River Water Rights and physical assets. There are two payments due annually, a interest payment due on December 15 and a single interest payment due June 15. 1965 N.K.W.S.D. Bonds City's 50% share of the 1965 bonds issued for purchase of conservation storage space at Isabella R~servoir. There is a principal and interest p~yment due in January and an interest payment due in July. AGRICULTtIRAL WATER ENTERPRISE 1981 WATER 'RICE & SAND SALE SCHEDULE The following recommend,~d water prices reflect the current, below- normal water supply condztlo~Ls of the lower San Joaquin~ Valley. Of the seven (7) water price ca :agories shown below, items 3, 5 and 7 are established by existing .'.ontracts, with items 5 and 7 escalated by the "Ail Commodities" index annually. The water prices for items 1 and 2 are dependent upon time ofl year and water supPly conditions. The reco~ended water rates for Catagories 1, 2, 4 and 6 would take effect May 1, 1981 and would remain in effect until water supply conditions warranted changes or adjustments to these prices. For information and reference, the 1979 and 1980 schedule for surface water sales is shown for comparison: PRICE PER ACRE FOOT Prices Effective Actual 1979 Actual 1980 May 1, 1981 TYPE OF WATER (95% of Normal (225% of Normal (72% of Normal Water Year) Water Year) Water Year) 1) Miscellaneous Kern River Water ~.. $20.00 $12.18 $25.00 sold for surface irrigation March-September · 2) Miscellaneous Kern River Water '... $12.18 $12.18 $13.56 sold for surface irrigation ',: October-February ' 3) Basic Contract Water .............. $20.00 $20.00 $20.00 (price set by contract) 4) City non-Kern River Water Sales;fl .. $12.00 $12.00 $20.00 (Oilfield Discharge,. etc.) 5) City "Borrow/Payback" Water ...~.. $11.45 $14.21 $15.81 (price set by contract) 6) Kern River Canal and Irr. Co. .. $12.00 $12.00 $14.40 (includes 30% Sale to North Kern W.S.D.) 7) Miscellaneous Water that would .. $7.04 $8.12 $9.04 otherwise be used by City for groundwater replenishment. (price, set !by. '~;ontra ct) For temporary pumping al reements (from canal or. river facilities), Annual Pumping Agreements an, Sand Removal Sales from the Kern River primary flood channel (owned by the City), the following rates are recommended and would remain in effect until conditions warranted changes or adjustments. ITEM PRICE 1 ) Temporary Pumping Agreements .................... $40.00 per day (from canal and/or River facili' ig i 2) Annual Pumping Agreements: 0 - 2 loads per week .................... $200.00 (minimum charge) 3 - 5 loads per week .................... $300.00 6 - 8 loads per week ............ $400.00 greater than 8 loads ~er'~e~ :..:... : $500.00 (or greater, depend- ing upon volume) 3) Sand Removal Sale~ ............... ? ...................... $1,00 per cubic yard (plus sales tax ~ when applicable) "' [ ESTABLIS~ OF "~ FINANCIAL RESERVE ACCOUNT" Now that the City has had four years experience in the operations, maint- enance and financial obligations associated with the Agricultural Water Enter- prise function, it appears necessary at this time to establish a "General Financial Reserve" that would insure and protect the City from ever having to use general funds of the City to support the Water Enterprise operations. This was a promise that was made to the voters when they supported the General Obligation Bonds for the acquisition of Kern River water rights and properties in 1976. This financial Reserve could be established from Agricultural Water revenues accrued during above-normal water years and would be held in reserve for only the following purposes: 1. Provide an Agricultural Water fund that could be used to cover operating and maintenance expenses during dry years when water revenues are m'inimal. 2. Provide an emergency reserve for unscheduled major maintenance for such items as canal breaks, pipeline failures, _.weir failures, etc. 3. Provide a contingency to restore water coveyance facilities in the event of natural diaster, rainflood, earthquakes, etc. Because of the liability and loss in revenues that could occur due to a loss of facilities, it would be imperative to restore service and facilities as soon as possible. In researching local Water Districts with similar operating responsibil- ities, it was found that 25% to 30% of the annual operating budget has been set aside for this General Reserve fund. As it relates to the City's Agri- cultural Water Enterprise operations, this would mean an amount of approxi- mately $500,000 should be set aside to create this General Financial Reserve Account. With this information it is now recommended that this contingency acccunt be created, to be used only for the above mentioned purposes, with a current ceiling amount of this fund to be established at $500,000. This amount would be adjusted annually to reflect the effects of inflation. This will require action in addition to the acceptance of the 1981-1982 operating budget. Attached for your information is an updated reconciliation of the Agri- cultural Water Enterprise showing that $299,452 is estimated to be available on June 30, 1982 for the General Financial Reserve account explained above. AGRICULTURAL WATER ENTERPRISE FINANCIAL RECO~CI L IATI ON Cash & Accounts Receivable As of 06-30-80 ........ i ............................... $2,043,227 Estimated Net Income 1980-1981 ......... ~ .......................... 156,020 Estimated' Ag. Water Capital' Improvement Expend~itures 1980-'{~{ . ' . .. (393, 880) Estimated Cash & Receivables As of 06-30-81 ..................................... $1,805,367 Estimated Net Loss 1981'-1982 .~ .......................................... (86,790) Estimated Public Works Capital Projects-Outla' From Ag. Water Enterprise in 1981-1982 for construction of Interim Wast_~ Water Facilities at Treatment Plant No. 3 (By Council action Marc~ 25, 1981) .................... (200,000) Estimated Cash & Receivables As of 06-30-82 ...................................... $1,518,577 Ag Water Capital Budget Items Approved during Period 06-30-78 thru 06-30-81 But Not Yet Constructed (This amount is in addition to $393,880 shown above for 1'980-1981 expenditures.) .......................... (1,219,12S) Unencumbered Contingency Reserve For Emergencies, Unscheduled Major Maintenance and Operational Reserve For Dry-Year (Low Income) Operations Estimated To Be ~ On Hand 06'-30-82 ............................................................. $ 299,452 These unencumbered funds estimated to be hand of 06-30-82 currently are on as and would be available to begin the establishment of "General Financial Reserve" account explained on previous page. April 29, 1981 Kern River Land Use Study e been given a draft report which the staff is now reviewing prior to distribution. The report was0 due_on. MarLch ?~1. t981~ We are running a little beyond that dateqff~ut~'dn t 6~e~eve th,s will create a.,prob.~.. We have received several requests for copies ~ ~)soon as ~ is available for distribution. DOMESTIC WATER ENTERPRISE Income Statement For the Third Quarter Ended March 31, 1981 REVENUES Domestic Water Sales $983,432 Construction Sales (Temporary Service) 10,052 Total Sales $993,484 OPERATING EXPENSES Field Expenses: O & M Charges from Cai Water Service $231,900 Power for Pumping 195,359 Maintenance 2,284 Total Field Expenses $459,543 Administrative Expenses: Administrative Salaries and Fringe Benefits $ 43,779 Charges from Other Departments 8,711 Professional Consulting Charges 17,330 Insurance Expense (Est.) 5,518 Pumping and Property Taxes 101,092 Management Fee from Cal Water Service 22,575 Miscellaneous General and Uncollectible Accounts Expense 19,683 Total Administrative Expenses ~218,688 NET OPERATING INCOME BEFORE DEPRECIATION $345,253 Depreciation Expense (Est.) 93,752 NET OPERATING INCOME $251,501 NON-OPERATING ITEMS Revenue: Interest Revenue (Est.) $ 71,000 Expenses: (MLE Refunds) (19,889) NET NON-OPERATING ITEMS $ Sl,lll NET INCO~ OR (LOSS) $302,612 CURRENT NUMBER OF SERVICES M~INLINE EXTENSION REFUNDS Active 6,496 Refunded Amount $19,889 Inactive (Est.) 170 Undeveloped Lots (Est.) 1,139 TOTAL ............ 7,805 ., ,., Kern CountyWater Districts APR 2 81981 TO: AL[. PARTICIPANTS OF THE OPTIHIZATION PROC, RAH .~-PA.~AAENT OF WATE FROM: JERRY L. CAPPELLO DATE: APRIL 24, 1981 SUBJECT: REVISED AGREEMENT Reference is made to my letter of April 3, 1981, which advised you that the Agency Board had requested Roy Gargano to prepare a revised draft of a~reement for the Optimization and Enhancement Study. This has been completed and om April 23, the Kern County 17ater Agency approved it in principle and authorized its .execution subject to reasonable modification to be approved by the attorney. Enclosed is a copy of this revised draft for your review. You will note that the substative portions are substantially the sane as set forth in the previous agreement. It would be appreciated if you would let Arnold Rummelsburg or me know by ~ay I! of any changes you feel to be absolutely essential, l~e will then attempt to have a final copy for signature at the ~av lg meeting of the l~ate~ Districts Advisory Committee. JLC:wkc DRAFT This Agreement made and entered into this day of , 198], by and between the KERN COUNTY WATER AGENCY, the CITY OF BAKERSFIELD, the ARVIN-EDISON WATER STORAGE DISTRICT, the BELRIDGE WATER STORAGE DISTRICT, the BERRENDA HESA WATER DISTRICT, the BUENA VISTA WATER STORAGE DISTRICT, the CAWELO WATER DISTRICT, the DELANO-EARLI.qART IRRIGATION DISTRICT, the HE,~IRY MILLER WATER DISTRICT, the KERN DELTA WATER DISTRICT, the KERN-TULARE WATER DISTRICT, the LOST HILLS WATER DISTRICT, the NORTH KERN WATER STORAGE DISTRICT, the OLCESE WATER DISTRICT, the RAG GULCH WATER DISTRICT, the R(~SEDALE- RIO BRAVO WATER STORAGE DISTRICT, the SEMITROPIC WATER STORAGE DISTRICT, the SHAFTER-WASCO IRRIGATION DISTR~CT, the SOUTHER¢~ SAN JOAQUI~'~ HUNICIPAL UTILITY DISTRICT, the TEHACHAPI-CUMMINGS COU~ITY WATER DISTRICT, the TEJON-CASTAC WATER DISTRICT, the WEST KERN WATER DISTRICT, and the ~HEELER RIDG£-;qARICOPA ~ATER STORAGE DISTRICT , hereafter referred :o collectively as the "Public Entity'.' and the ASSOCIATED ENGINEERING CONSULTA~TS, a joint venture, comprised of BOOK.HAN- EDMONSTUN ~' . ~NGI~IEERING, INC BOYLE F~IGI~EEF, IiIG CORPORATIO;I, LEEDS, HILL AND .... c JEWETT, INC RICKS ~ TAYLOR AND ...-¢~RS I and STETSO~i E,';GINEERS, hereafter referred to collectively as "Consultant," W I Tmcb S E TH: WHEREAS, the Public Entity is composed of political subdivisions and Uody politic's which all qualify as "P,Jblic Agencies" within the arnbit of the Joint Exercise of Power Act as set forth in Chapter 5 of Division 7, co~nmencing with Section 6500 of the Government Code; and WHEREAS, each of said political subdivisions and bcd% politic} is located within or in proximity oF the San Joaquin Portion of Kern County and, among other things~ is empowered to acquire, develop, preserve and utilize water supplies for the benefit of the taxpayers and prmperty owners within its respec- tive jurisdiction; and WHEREAS, said "Public Agencies" ' have deemed it essential and in the public interest to join to§ether pursuant to the Joint Exercise of Powers Act' for the purpose of engaging Consultant to r~ake a comprehensive investiqation and t6 prepare a detailed report with the objective of developing a program to determine the feasibility of enhancing and optimizing the use of water supplies available to the San doaquin Portion of Kern County. NOW, THEREFORE, IT IS MUTUALLY AGREED by the parties as follows: ARTICLE 1 - CONSULTANT - SERVICES - TIME SCHEDULES - COPIPENSATION 1. Services The Public Entity does hereby enc~age Consultant to make the investiga- tion and to prepare the report referred to in the .Recitals. Said investigation and report shall embody all of the specific items of work delineated in Para- graphs 1 to 15, both inclusive, of that certain document attached hereto, marked Exhibit "A", and made a part hereof as though fully set forth at length. 2. Time Schedules Consultant shall have a period of ten (10) months commencing from tile date of the execution of this Aqreement in which to complete the investigation referred to in Paragraph 1 of this Article. At the end of said ten (10) .'nonth period Consultant shall subr~it to the Steering Committee referred to in Article II the twenty-five copies of the report mentioned in Paragraph 16 of Exhibit "A". The Steering Coramittee shall ti~en have forty-five (45) days in which to prepare ar~furnish Consultant with its written c~,,,~nts~.~ and suggestions regard- ing said draft report. Within forty-five (45) days after receiving the written comments and suggestions from the Steering Committee, Consultant shall prepare and present to the Committee the final report and all other ~naterial referred to in Paragraph 17 of Exhibit "A". 3. Compensation Consultant shall be .paid a total of T'~O HU?~DRED TWE~TY-FIVE THOUS,~.,D DOLLARS ($225,000) for all services performed by it pursuant to Paraoraph 1 of this Article. Said sum shall be payble in ten (10) monthly inst~nents of TWE;tTYRF'~-Vq~ THOUSAND DOLLARS ($2~,000) per month upon the presentati,}n of the \ proper claim to the Steering Committee accompanied by a progress rep~'t as req~ired$ by this Agreement. 'The balance of said sum of TWO HU~I~)REO AND T~.IE:ITY- FIVE THOUSAND DOLLARS ($225,000) or the sum of TWENTY FIVE THOUSA,qD DOLLARS ($25,000) shall be payable to Consultant upon the completion, presentation and approval of the final report referred to in Paragraph 2 hereof. 2 ARTICLE ii ] STEERING COMMITTEE - EXECUTIVE COMMITTEE l. Steering Committee - Establishment - Function A Steering Committee is hereby established to act as the Public Entity's authorized representative in connection with all matters pertaining to this Agreement. Specifically, it shall be the function of the Committee to make all policy decisions relating to the services to be performed by Consultant pursuant to Paragraph 1 of Article II, to review progress reports and to approve or disapprove Consultant's monthly claims for compensation. In addition, the Committee, subject to Consultant's written consent, shall be empowered to modify or alter the scope of the investigation to be made by Contractor under this Agreement. 2. Composition - Me~tings The Steering Committee shall consist of one representative selected by each Public Agency which has executed this Agreement. The members of the Committee shall meet .as soon as it is practical to do so and they shall e.lect a Chairman and a Vice-Chairman. The Chairman shall then appoint a Secretary who need not be a member. Thereafter, the Committee shall meet at least once a month in order to perform its function. 3. ~uorum - Vo~e Each member of the Steering Committee shall have one (1) vote and a majority of such members shall constitute a quorum for the purpose of conducting the Committee's business. Provided, however, that the Committee shall not modify or alser the investigation to be made by Consultant pursuant to Paragraph 1 of Article I of this Agreement except upon the vote of two-thirds of all of its members. 4. Executive Committee To expedite the business of the Steering Committee, the Committee shall elect five (5) of its members to serve as an ExecutiYe Commfttee. The Executive Committee shall deal with any matter or problem arising between meetings of the Steering Committee and shall meet with the Consulant's Project . . ~x,_cutive Director, as ~nd when it is necessary or advisable to do~ so The ~ o Committee may also make such recommendations as it deems appropriate in connec- tion with the Steeri-ng Committee'.s functions. 3 ART'iCLE III - CONTRIBUTIONS - DEPOSITORY OF FUNDS - DISBURSEMENTS 1. Contributions Each Public Agency which executes this Agreement shall, and it does hereby aDree, to contribute toward the compensation payable to Consultant for services performed by it pursuant to Paragraph 3 of Article II, the amount spec,~fi~d after such Public Agency's nmne in the "Contribution Schedule" attach- ed hereto marked Exhibit "B" and made a part hereof as though fully set forth at length. Said contributions shall be payable as follows: not less than twenty (20) percent thereof shall be payable immediately upon the execution of this Agreement or within a reasonable time thereafter; the balance thereof may be paid in ten (10) equal monthly instaJlments. 2. Depository The .Kern County Water Agency is hereby designated as the depository of all funds payable pursuant to Paragraph 1 of this ,'Article. Said Kern County Water Agency shall deposit said funds in a special trust fund established for that purpose and all disbursements to the Consultant shall be made from said special fund upon the receipt of claims approved by the Steering Committee. 3. Accountability - Return of Funds The Acjency shall be accountabl~ for all funds deposited in the trt~st fund referred to in Paragraph 2. If, after the Consultant has been paid in full, there are any funds remaining in the special trust fund (including inter- est earned) such remaining funds shall be distributed a~nong the contributing Public-Agencies ]n proportion to their initial contributions. ARTICLE IV ~ MISCELLANEOUS PROVISIO?~S 1. Work Standard All work to be performed by Consultant under this Contract shall be done in accordance with the highest professional standards, and Consultant represents to the Public Entity that it and its employees are fully experienced and properly qualified to perform the work and services called for herein, and that it is properly licensed, equipped, organized and financed to perform such work and operations. ~ 2. independent Contractor Consultant shal! finance its own operations hereunder, shall operate as an independent contractor and not as the aqent or employee of the Public Entity, and !lothing in this Contract shall be construed to be inconsistent with this relationship or status. 3. .Project Director Consultant shall designate a Project Director who at all times shall represent Consultant befo're the Steering Committee or the Executive Committee on all matters relating to this Contractor. 'Surt A. ~abcock is hereby designated as ?roject Director and he shall so serve unless he is re~oYed or replaced at the discretion of Consulant or at the request of the Steering Committee. 4. Progress Reports Consultant shall submit to the Steering Con~mittee monthly progress reports regarding the work to be. performed by Consultant pursuaat to this Agreement. Said progress reports shall accompany the Consultant's monthly claims for instalment payments. 5. h!odification of Contractor's Services If the services 'to be performed by the Contractor are modified or altered by the ~Steering Committee as provided in Article II hereof, then the Consultant's compensation may also be modified by mutual agreement between Consultant and the Steering Committee. Provided, however, that no such modifi- cation in Consultant's compensation will increase the contribution of any Public Agency which has executed this Agreement without the prior consent of that Public Agency. 6. Termination The Public Entity may ter~inate this Contract at any time upon thirby (30) days written notice to Consultant. However, it is the intent of the parties that in the event of any such termination, the Consultant is to be fairly compensated for all work performe~ to the date of termination. Accord- ingly, it is agreed that Consultant shall be compensated as provided in ?ara- qraph 7 of th.is Article. 5 ~., ~o~ all services performed by Consultant up to the termination of the Contract, Consultant shall be compensated as follows:.. (a) times hourly salaries paid by Consultant for each hour an employee performed such services. In this connection the hourly salary for each employee shall be the employee's annual salary before payroll deductions divided by 2,080 hours. (b) Consultant's non-direct salary costs incurred in connection with the performance of such services. Such non-direct salary cost shall include living and traveling expenses of employees, account- ing expenses, computer rental and programming costs, printing and similar costs and any other cost that is not applicable t~ general overhead. 8. Insurance - Indemnification (a) Workman's Compensation - Consultant shall maintain for the entire duration of this Contract such insurance as will protect it from claims under Workman's Compensation and employeers liability acts, such insurance to be maintained, as to type and amount, in strict compliance with State and Federcl statutes. (b) Public liability, property oama~e and personal injury Consultant shall indemnify and hold the Public Entity'harmless from any and all damages resulting from injuries to third persons and property damage caused by any act or omission of Consultant or any of its agents or employees. Consultant shall maintain for the entire duration of this Contract such public liability insur- ance as shall protect the Public Entity, and Consultant from any claims whici~ may arise from Consultant's performance of the s-ervices required by this Contract, Such liability insurance shall include, but shall not be limited to prot'ectien aQainst claims arising from bodily or personal injury, or damage to property resulting from or attributable to the performance of the services required by this Contract by Consultant, its employees or any directly or indirectly employed by Consultant in connection therewith. The mnount of coveraqe shall not be less than dollars single li~it coverage applying to bodily and personal injury and property d~nage or a c,]mbin- ation or both. 6 ,~(C~ Certificates - Consultant shall deliver to the Kern County Water A~ency~bn behalf of the Public Entities certificates of insurance to which shall be attached certified copies of the policies required by Subparagraphs (al and {b) of this Paragraph. 9. As.signment It is recognized that this Contract is for personal services and shall not be assigned by the Consultant in whole or in p2rt. 10. Reduction of Contributions In the event the commitment for contributions as designated on the "Contribution Schedule" exceeds the total sum of TWO HUNDRED T~ENTY FIVE THOU- SAND DOLLARS ($225,000), then and in that event the contribution of each Public Agency which has executed this Agreement shall be reduced proportionately. 11. ~'~otices All notices that are required to be given by one party to the other under this Contract shall have been deemed to have been given if delivered personally or enclosed in a properly addressed envelope and deposited in a United States Post Office for delivery by registered or certified mail, address- ed to the parties at the following addresses, unless such aJdresses are changed by notice of the other party: The Public Entity c/o Kern County Water Agency P 0 Box 58 Bakersfield, CA 93302 Consultant C/O ' ~ - '-:' · . ,. -., . :_ -:, , -, , ._ , ,,, ,:.: .... .~',. IN WITNESS WHEREOF, the parties i~ave hereunto subscribed their names the day and year first above written. RIO -- ?lATER STORAGE DtSTR~CT P.O. ~ox ~07 · ~ker~f~ld, ~lifornia ~2 · 32~797 NUT,CE .. THE KER;i RIVER FAN GROUP WILl. Ma~_T ON TUESDAY APr,~ 21 ?.. 19gl, AT 9:00 A.M. IN THE KERN COUNTY ~ATER AGENCY BOARD ~..'~} The above notice sent to the following: John Chafin - City of Bakersfield George Nickel - Nickel Enterprises Bill ~lch - Tenneco Cil Castle, Jr. - Kern Delta ;~ater District Chuck ~lilliams - North Kern Water Storage District Harold Russell - Buena Vista Water Storage District Jori Sansing - West Kern Water District S~u Pyle - Kern County Water Agency Gene Lundquist - ,Kern County Water Agenc~ Hank Garnett,- Kern County Water Agency Tom Hurlbutt ~ Henry Miller Water District William E. Moore, Jr. 4-20-81 cc: S. Hatch w/a T. Stetson " M I N U T E S KERN RIVER FAN GROUP April 8', 1981 A ~neetinq of the Kern River Fan Group was held at; the headqc;arter's of the Kern County Water Agency, 4114 Arrow, Street in Bakersfield, on April 8, 1981, at the.. hour of 9:00 A.M. -~ ' '":"" '~" Representatives and their affiliations present were: Paul Enns, Rosedale--.'" -:' Rio Bravo Water Storage District; Harold Russell, Buena Vista Water Storage Dis-.:,.~:'ii?L:'~ trict; blary Collup, Rosedale-Rio Bravo Water Storaqe District; Gil Castle,' Delta !,later District; Gene 'Lundquist, Kern County Water Agency; Bob B~11,~ County '~ater Aeency; Tom Hurlbutt, Henry Mil'ler Water District; GeorgeR~bble,' Kern"~'~"';:,%~:.,-;:. ...... County ~.later Agency; Dave Harden, Rosedale-Rio Bravo Water Storage O~str~ct: George Nickel,j~ Nickel Enterprises, Inc. :~? "~":'~";' '~'~ Chairman Pro Tem Enns called the meeting to order and noted that tatives from the City of Bakersfield, Tenneco Oil Co., North Kern Water Sto~'age.:'¢;~].. District and West Kern ~4ater District had also been invited to attend this meetlng:..~:..].ii?~..i.· ChaPman Enns stated that this meeting was Calle~.__!n~.._a__n~_.e_ffor_t_._to bring, the. l(e.rt.T.:.:? :'- . _ River Fan Group together with the Agency playing: a part in' decisions affecting, the~" .... group. It was felt that attendance by all invited was imperative in order to, · accomplish the Group's objectives. : '. The Agenda for todays meeting was distributed, herein designated as. Exhibit "A" and attached hereto. With the absence Off'several parties' invited, the "second item on the Agenda, Selection of 'a, Chairman., was postpone(i unti. l'.~ later'...: :'".' et ing'~ ~ -- · .: the Study is proceeding with districts pledging their-support and engineering ........ "- studie-,.bequn, it is imperative that we try to· get all the Water we can into this "' 'County prior to 1983 when the power costs on. the state Water Project will go up .- .,i .. seven fold on at least entitlement water. It is important to discuss possible funding procedures needed to. go ahead and purchase, extra surplus water for percola~- -. ' '-' .. ~i~)'n or .supplied in-lieu when it. becomes available. Unless the funds are alr.eady. Z..,.V..i' .il avai'lable, and areas designated for its use right when the extra surplus water becomes available, then we are liable to lose it. At this time, there is a week to, two ;~eek incremental notice when it is available, We have to be in the position to be able to purchase this water'and bring it into the County upon the first notice that it is available, The availability of extra surplus is indefinite as..long all Delta quality requirements are met there are flows in excess, of' that President Pro Tam Enns suggested that since extra surplus.:wate~! for 1-1/2 months after it is ordered, if the Agency had assurances tricts that this money would be available on call, this procedure could] function'S;,':7~i}''i'~'''ir:~]''' Two items that would be involved are (1) there was some type of assur~c~ parties that they would put-up the money when requested, and. (2)' this:; could be done on some type of acreape basis. Discussion therein ensued regarding pricing of extra. transportation charges. Mr. Nickel stated he had some ideas that are perhaps a. little'different~. than had been examined previously. Mr.;Nickel /~istrib'uted a Memorandum addressed to t,,~ Kern River Fan Group, designated as Exhibit "B" and attached hereto. He went on to say that a better use of Isabella Reservoir may very possibly be: a way t° get more water into the County. We have an asset there that we are'not fully The most desirable thing you can do on an irregular river like the Kern~River have maximum carryover storage. If we have maximum carryover, storage_,~_ Reservoir and we have a wet year, we have get,to have a place to Put~t'~at~ efficiently. In recent times, we have put water into the City spreadin¢:~rea'}:~ut~ the time is not too far off when we wi)) find we do not have aS. efficient'a~.spre~'~ ' d~'-~ Mr.. N~ckel continued sta:~ng that we have. to able progrm.. There are people ~.~-the~T_nneco organization.that w~.l): does not make sense that Tenneco should purchase water cheaper, than-th~ m~bem' his M~orandum, If'there ~ere spreading water available and in its spreading areas, physically there should be no disadvantage` spreading .area to put that water into Rosedale first.. It 'would, pumpers the-' elevated'"' water,' to the' extent that it is ' ~ '-,. £ha, irman Pro Tem Enns noted that Rosedale had met with the City the previous day and had suggested the possibility ot: having a better supply of water available for the Rosedale district from the RiYar, so Rosedale can encourage more people in their district to utilize the water on the surface, Nr.. Nickel continued in regard to Isabella Reservoir,' noting that the carryover stora.qe program was designed by the Army' Corps ot~ Engineers to fit a .circumstance~ that they could see' was feasible to handle water When. it had-to be released. This was all done pre-Intertie. Now that the Intertie.~Savaila~le it.i.$ increasingly-apparent that we~ should be permitted to have more carryover'storage.' The A~y has given us' quite a bit more, but this could be accelerated:,further~ It is very possible that we should reopen discussions with the State on tradeoff water, . ...... Mr. Ribble stated that one of the problems the Corp~.of. Eng. ineers has is. use of the Intertie as a conservation facility. If you repay' ~j~ter back after it is put ~n the Intert~e, you are creating conservat}on beneflts~ '~i~There }s the chance that they would reallocate the cost of the Intert~e. Isabel.)!a~ O~' ~s bas~cal.ly a flood control d~, but it~has a conservation function. If th~''Intertie pemits it to have a greater conservation benefit, then they say they may. hav. e to reallocate the costs and'charge more for conservation at Is~ella as wel]~,~?,..,.· : Continuing with another Agenda item, Chaiman Proofs'brought.the group'S-. in the proposed banking progr~ between the Agency and the. City, the propoSal h~' been there ,~ould be a S3/AF' charge to percolate in the City ,spKeading works. Mr... · Nickel stated that he felt whatever charges the City received i'n the way of'profits~ on water sales,, etc. they ought to be encouraged to put that .back,' into making the ..TenneE6.:'rto'-'accept some]' type,' of.: progr~ where they. pay'. a~ ~'definite? Price-for' .'' Discussion fol"¥OWed by~ m~bers.'of the group. Another'.problem,'.area~._-i.nL..regard Tenneco that' would have'to be. addressed is consumptive use~ TeAneco~s. Water take' very substantial', b~cause some of their land is'very sand~ and the cons~ptive."use might be 2-1/2 AF/Acre or it could be 5 AF/Acre, .:. .~ ' ' ' Mr. Russell· noted tha~ Mr. ,Nickel's idea regarding: Isabella Dmn should '~a~. of,:the OptimiZation,, Study~ It was designated that Walter. i'SchulZ,,C°ns'ul~.~ng..,.:'... Engineer. w)th'Leed~Hi).)., who a~e addressing the Optimization St'udy; w.il)~ , ~Mr. Lundquist noted that under Item 7(b), KCWA Proposed Policy,.the Ag'ency's proposed qround;,ta~.er banking progrom was being sent to the Water Districts Advisory Committee for their comments. The proposed program at this point is to establish goals and contains the indication that the Agency desires this program. It encoura~les districts to work with the Agency to develop this kind of program. In reference I;o the Semitropic Groundwater Banking program, in which involved the State, Mr. Hurlbutt noted that there was concern of how this would'.._.-' affect- the availability of surplus water to the other districLs.' lhe 'Agency's .., )olicy should 'in some way indicate that it was the intention to leave the State out" of the Progr~'n and take whatever water.is available within the County. Mr. Lundquist noted that there was nothing moving' at this time w~th the Semitropic Banking Program. The State has lost interest in it, and the Agency is interested in, pursuing their own program. It w~$ noted that the member units did not look favorably on the Semitropic program and.'~ld not support it. ....~.,t~. Chairman call another meeting w~th Tenneco for further discussion. ..... -; " Hr. Russell noted that the suoqestien of per a acre charge was one possi- ble method of providing funding for.purchase of extra s~rplus water. Mr Lundquist stated that he was going.-to propose-to the staff and other Directors~that' the Agency come up with some type'of-program in which, perhaps, the · Agency mig~at contribute a certain number of dollars, provided a. certain percentage~.i~. 'of districts will contribute whatever amount per acre.' ' '.~ ~ .~. Chairman Pro Tem Enns adjourned this meeting of the Kern River Fan Group2.. .... ~ '- :~- The next meeting, of the Kern River Fan Group .will be held at the head._--~.' :: quarters, of Agency on Tue~sday', April 21', 1981 aL the hour of 9:00 A.hi.' "' ;" Respectful iy Submi trod, _. KERN RIVER FAN GROUP April 8, 198) ~ t;. ~.;..?::. I Opening remarks - Paul Enns, · . 2, Selection of Chairm~..,' ..': .... , 3. Appointment of Secre~ary - ~.:' .' '-' -.'- - -,. 4. Consideration of Agenda subjects. ?, ]:.?';': 6. Short term water replenishment (keep in mind' 1983 -:-, ....... .:.,-.;. . power costs on State· Water Project) . ~'i:"[' ! :. ' (al Discuss procedures for fundinq '.. Exhibi l: "B" MEMORANDUM TO: KERN RIVER FAN GROUP FROM George W. Nickel, Jr. DATE: April 8, 1981 ~ .. ' The meeting ceil'ed"today by. Paul Enns of Rosedale is a follow ~.yi...~u-p.to'the meeting..'held at'the Agency on March 16th that was "~'attended by representatives of the Agency, the City of Bakers- .-. ·. field, Rosedale, Buena Vista and Olcese, In addition to those entities, Paul has .invited today representatives of Tenneco, .Kern Delta, North Kern,· and-.~West Kern. I acted as temporary recording secretary at the. March 16th meeting and distributed' a memorandum of such meet.lng to all those entities~.in attar'dance. "'~.:'To establish some continu~[~Y in these meetings, I:have available F~·copies of the memorandum'~,! the March !6th meeting·for the '..~ ' representatives here of T~.neco, Kern Delta, North Kern and West Kern. I suggest that a. r~il.iew of this memorandum ~ight be a point Of beginning of the~eeting today, i also note that it was indicated at the March.~..16th meeting that the Agency. is the logical entity to head uP?~fforts to bring more California Aqueduct water in the Kenn River Fan area and to head up this type of meeting for the go.od of all entities concerned,~ I have -~ no. personal desire to be t'he recording secretary at these meetings; '~·~'-~ although, I will do so-if~requested. ! suggest that it would be ~.i~'.~-~referable to have a·secretary of the Agen~ p~esent to record What'transpires a~th6s~e~ings. '~·· Aside from reference to the March 16th meeting, I have one or ..... two additional items that~I·would like to set forth for ' ~discussion and evaluAtion.at today's meeting. .' '-' ~-,. I..- On the assumption that under proper priorities and other requirements~that the City will make its 2800 acre spreading ~.'~i!'?~'i'!~i-lground~ available, for· maximum beneficial use. I suggest that /T'~"~ we·s_hould stud~ how best to. make such a spreading area fully ~?'~]~.i~~ efficient I like "·" a spreading area for discussion purposes -~,i:~~ tO. initiall'y be an empty bucket. As water is available for -~:~:~_...~s'preading.,. water-is-put.into the bucket, then unless the bu'cket ]]~i.~.. is' drawn upon it will eventually fill and not be available for furthe~ spreaJing. As a practical matter, it appea~rs that the ~I bucket should not only be drawn upon for use of the water contained ..~.~-~,~ therein 'in other areas, but should also be drawn upon to provide space for~ other water when it becomes available for underground ~.~.'".' storage. It is this.second program that I would like to call ~?!.·' attention to and. suggest some ideas for discussion and evaluation .~L.~F.~:~.purPo§es. I suggest that we~ have in !~abella Reservoir an asset --.'<,~'~.that-~.we are not fuily~utilizing. To make better use of the '.~'~'~. -c'onservatioo stoKage~in~.'Is'abella Reservoir, it would be highly ~"..~i~[~['i[desi~able to uti~.lize avail'able conservation storage space to its its maximum. This progran~ could be greatly assisted if tied in with the underground water storage program in the City's spreading area. As an example, Buena Vista could take water pumped from the City's spreading area and .leave that amount of water in Isabella Reservoir to the extent that conservation storage space is available in that same amount. It is factual that there would be some loss of water in Isabella Reservoir through evaporation; however, this evaporation loss can be calculated and could in this example be an extra quantity of water that would be credited to Buena Vista. I go on to note that there are other Kern River entitlement holders that could also participate in this same type program through use of the Cross Valley Canal and other means. In my opinion, this is a subject that has been overlooked up to this time. i think that it does deserve discussion and evaluation. 2. As noted above, I contend that~ to have a successful spreading and recovery operation, the referred to'bucket in my example does need to be drawn upon so that storage capacity is available when th.ere ar~e surplus waters available~for spreading. I am also aware that if this particular bucket is drawn upon to create more storage capacity, Rosedale could find that an area of depression in the City's spreading area might constitute some draw upon the groundwater elevation in the Rosedale District. This of course is a factual matter that should be regularly evaluated. In any event, for discussion purposeS, I will make the assumption that at least some form of problem has been created for Rosedale. I suggest that this can be overcome by at times actually spreading water not owned by Rosedale in the Rosedale spreading pond. This should have direct benefit for adjacent Rosedale pumpers. Properly regulated, I do not think that this would have disadvantage in the City's spreading area where the same amount of water would otherwise be spread. I suggest that this program should be discussed and evaluated. 3. The biggest single threat to the Kern River Fan under- ground continues to be entitie~ that will take from the under- 'ground without bringing into the underground water replacement water on a bank account basis. Both Rosedale and West Kern have Deen making constructive efforts to bring in water on a bank account basis to offset underground withdrawal. Tenneco has made a 100,000 acre foot purchase of underground water from the City and has also purchased some other waters; however, as practical matter with the number of wells that Tenneco has in the Kern River Fan area, Tenneco's withdrawal of underground water may be very substantially more than its importation of water. As we discussed at the Narch 16th meeting, all entities want to cooperate with Tenneco, provided only that Tenneco will make a full commitment to also cooperate. To assist Tenneco, I have some ideas for discussion purposes. If we can find agreement with Tenneco to .pay the ).l&I price for California Aqueduct water FOB th~ Jquedu~ct, plus other costs in delivering water to Tenneco, I ,, believe that it may be possible to make substantial quantities of water available ~to Tenneco. I suggest that the City, to the extent that it has spread water in excess of City requirements, can sell such water advantageously to Tenneco at that price structure. I also suggest that the City might consider putting such income into additional purchases of surplus Aqueduct water when available to make further water available to Tenneco. I sugges~ that the Agency could also embark on a similar type program. With all entities cooperating, I think we have a chance to solve our overall problem. It certainly is worth discussing and evaluating. GWN:rjp