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HomeMy WebLinkAbout05/15/96· ~ CALIFORNIA WA R Mark Salva~io, Chair Randy Rowle~, Vice-Chair Patricia M. Smith CITY OF BAKERSFIELD WATER BOARD MEETING WEDNESDAY, MAY 15, 1996 - 4:30pm Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA AGENDA 1). CALL MEETING TO ORDER. 2). ROLL CALL - BOARD MEMBERS. 3). APPROVE MINUTES OF WATER BOARD MEETING HELD MARCH 13, 1996. 4). PUBLIC STATEMENTS. 5). CORRESPONDENCE. A. LE'ITER RECEIVED FROM WATER ASSOCIATION OF KERN COUNTY CONCERNING "FUN RUN\WALK FOR WATER" EVENT. 6). DEFERRED BUSINESS A. KERN RIVER OPERATIONS UPDATE. B. CALIFORNIAWATER SERVICE REQUEST FOR INCREASED COMPENSATION RATE UNDER EXISTING CONTRACT AGREEMENT. 7). NEW BUSINESS A. NORTH OF THE RIVER SANITARY DISTRICT LETTER AGREEMENT CONCERNING AGRICULTURAL WATER SERVICE TO DISTRICT PROPERTIES. B. PIONEER PROJECT AGREEMENT WITH KERN COUNTY WATER AGENCY ON OPERATIONS ADJOINING CITY "2800 ACRES". C. ESTABLISHMENT OF "REVENUE STABILIZATION" RESERVE FOR AGRICULTURAL WATER DIVISION AND "FACILITIES REPLACEMENT" RESERVE FOR DOMESTIC WATER DIVISION. 1000 BUENA VISTA ROAD · BAKERSFIELD, CALIFORNIA 93311 · (805) 326-3715 CITY OF BAKERSFIl~LD WATER BOARD MEETING MAY 15, 1996 PAGE - 2 - D. AGRICULTURAL WATER DMSION 1996 SEASON WATER PRICE AND SAND SALE SCHEDULE. E. DOMESTIC WATER DIVISION SERVICE AREA SCHEDULE OF RATES AND SERVICE CHARGES FOR 1996-1997. F. REVIEW OF INVITATION FOR PROPOSALS FOR DOMESTIC WATER SERVICE TO THE NORTHEAST BAKERSFIELD AREA. G. REQUEST FOR WATER SUPPLY FOR PROPOSED GENERAL PLAN AMENDMENT FOR FUTURE DEVELOPMENT NEAR 7~ STANDARD ROAD AND SNOW ROAD. 8). CLOSED SESSION A. GOVERNMENT CODE 54956.9(b)(1); CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION. SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO SUBDIVISION (b) OF SECTION 54956.9 (TWO CASES). 9.) ADJOURNMENT. POSTED: May 10~ 1996 $:WBMY1586 FC.'f= FH M~rf 10, 1996 MINUTES OF THE REGULAR MEETING OF THE WATER BOARD - CITY OF BAKERSFIELD Held Wednesday, May 15, 1996, Water Resources Conference Room, 1000 Buena Vista Road, Bakersfield, CA 93311. 1. The meeting was called to order by Boardmember Salvaggio at 4:30pm. 2. Present: Mark Salvaggio, Chair Patricia M. Smith Randy Rowles, Vice-Chair, seated at 4:50pm 3. Boardmember Smith made a motion to approve the minutes of the Regular Water Board Meeting held March 13, 1996. Motion carried. 4. There were no Public Statements. 5. Correspondence SA. A letter was received from the Water Association of Kern County (WAKC) requesting financial support for a local public water awareness program for 1996. This years' media [-E campaign will focus on major legislative and regulatory events, with special attention on !:. ~ developments in the Sacramento-San Joaquin River Delta story. For other events on water ~ ~. awareness, Mr. Core introduced Paula Allamprese, representing the Kern County Water Agency & WAKC to address the Board regarding the 3rd annual ~Fun Run/Walk for Water" event. Ms. Allamprese extended an invitation to the Board and the public to participate in this event. It will take place Saturday, May 18, 1996, from 9:00am to 12:00pm. A motion was made by Boardmember Smith recommending a donation of $750 to support the 1996 campaign. Motion carried. 6. Deferred Business 6A. For information, Mr. Bogart presented the Kern River operations update to the Board. There have been fluctuations in the water supply forecasts this year, that have ranged from 80% to 130% of normal and is currently predicted at 121%. This number should hold for the season. This month of May has become an exceptionally high month for runoff due to warmer than normal temperatures. This has forced Isabella Reservoir to the highest recorded levels for this time of year. Due to these extraordinary events, there will be water in the Kern River channel in Bakersfield throughout the summer and early fall. Staff expects heavy use of the City's "2800 Acres" by others this year. No action required or taken by the Board. 6B. California Water Service Company (CWS) has requested an increase in the rate of compensation under City Agreement #92-250 (92-10 W.B.). The requested increase is to i offset CWS costs for implementing full disinfection of the City's Ashe Water system. These ?:'i costs were not envisioned in the current agreement and since the contract was signed, regulatory concerns have required the City to chlorinate its water supply. CWS has provided City staff with documentation on the increased costs. The increased CWS costs revolve around the labor and materials used to chlorinate the total water supply. Staffhas analyzed ~ the documented costs and recommends that additional compensation is justified and allowed i ~ under the existing agreement. The staff recommendation is to allow an additional ~ : compensation of 1.3%, or 9¢ per month per service connection. This increase will equate to approximately $30,000 over the existing contract amount. Boardmember Salvaggio made a motion to grant this additional compensation. Motion carried. 7. New Business 7A. The City has a letter agreement with North of the River Sanitary District (NORSD) regarding agricultural water service to NORSD properties within the Kern River Canal & Irrigation Company (KRC&I), a subsidiary of the City of Bakersfield. NORSD is landowner and responsible for payment for agricultural water service within this subsidiary. Irrigation water was delivered to a previous tenant farmer, De La Rosa Farms, who had paid a deposit, in accordance with established City policy for water service. De La Rosa Farms had kept its account, in prior years, paid in full and remained without outstanding debt to the City. During the middle of the irrigation season, De La Rosa Farms filed bankruptcy. NORSD has not been paid land rent and the City is owed for water deliveries. In order to continue to receive water service for the 1996 season, NORSD has chosen to pay in full the amounts owed to the City for the 1995 balance of $17,824.73. Per terms of a letter agreement between NORSD and City, the City Attorney's office will endeavor to recover funds from De La Rosa Farms, Inc. for water service and if successful, refund this amount to NORSD. NORSD has a new tenant farmer who has agreed to pay a $4,000 deposit towards the 1996 irrigation deliveries and maintain a positive cash balance with the City throughout the year. lTM Staff requests Board authorization to re-pay NORSD if and when the delinquent monies are I :' received from De La Rosa Farms. Motion by Boardmember Smith to authorize City refund ~ ' to North of the River Sanitary District upon receipt of delinquent funds from De La Rosa Farms, Inc. Motion carried. 7B. Mr. Bogart presented to the Board the proposed Pioneer Project agreement with Kern County Water Agency (KCWA) on recharge and banking operations adjoining City's 2800 Acres. A brief background of the project was given. The State of California originally planned to develop a nearby area of 20,000 acres, called the Kern Water Bank (KWB) into a groundwater banking project, but due to environmental problems, the project stalled. KCWA has investigated operating both the KWB and a local water banking program on nearby properties known as the Pioneer Project. Due to litigation against the State, the KWB transaction has been put on hold. KCWA has proceeded to develop the Pioneer Project and has started the CEQA process using a Negative Declaration, but this has not addressed the concerns the City has pertaining to this banking project. City is concerned with the ultimate use of this water stored, who are the beneficiaries of this project and what impacts on the City's "2800 Acres" will result from the proposed Pioneer Project. City staff has been meeting with KCWA and the Pioneer Project participants to negotiate an agreement. At this time, the Pioneer Project participants have indicated the willingness to protect the "2800 Acres" and City will allow City facilities to be used to convey their water to the Pioneer Project. The agreement should be finalized for recommendation by the July 1996 Water Board meeting. No action required or taken by the Board. ~· ..~ 7C. Mr. Bogart introduced Maurice Randall, the Water Resources Department Business ~ Manager, to present a plan to establish cash reserve accounts for the Agricultural Water Fund and the Domestic Water Funds. The reserves would be set aside for each of the water funds to be available in order to deal with any contingencies/emergencies that may arise. Staff recommends the "Agricultural Water Revenue Stabilization & Contingency Reserve" be established and set at $500,000. The Agricultural Water reserve would be funded from revenues derived from irrigation water sales and banking fees collected from the "2800 Acres~. The reserve would be funded over two fiscal years. The Domestic Water Fund "Facilities Replacement Reserves" is recommended to be set at $1,200,000, with revenues from domestic water sales used. Projected funding of the Domestic Water reserves will occur over a five year period. Boardmember Salvaggio made a motion to approve the establishment of reserve accounts for the Agricultural and Domestic Water Funds and recommend incorporating into the fiscal year 1996-1997 budgets. Motion carried. 7D. Mr. Bogart presented the Agricultural Water Enterprise 1996 Water Price and Sand Sale Schedule for Board review and action. Staff proposes no rate increases this year due to the quantity of available water and a favorable demand for irrigation and banking water. Boardmember Salvaggio made a motion to recommend City Manager sign the Executive Order setting the Agricultural Water rates for 1996. Motion carried. 7E. Mr. Pat Hauptman, Water Resources Superintendent presented the Domestic Water service area (Ashe Water) schedule of rates and service charges for 1996-1997 fiscal year to the Board for review and recommendation. Staff is recommending a modest rate increase of 4.5%, or about 86¢ to 90¢ per month on the average residential water service connection. This increase is necessary in order to cover the raise allowed by contract to the operations and maintenance contractor, California Water Service Company and also to finance the l'."i "Facilities Replacement Reserve." The proposed rate increase would become effective i October 1, 1996. After some discussion a motion was made by Boardmember Salvaggio to recommend City Manager sign the Executive Order setting the Domestic Water schedule of rates and service charges for 1996-1997. Motion carried. 7F. Mr. Core updated the Board on the Invitation for Proposals sent to three qualified retail domestic water purveyors to provide water service to a proposed development in the northeast Bakersfield area. Two proposals were received, one from California Water Service Company and the other from Olcese Water District. Staff has been evaluating these two proposals to make a financial comparison and determine which one could provide the most reliable system and service for the best price to the developer and future homeowners. The water purveyor must also have the ability to integrate this water supply system into the overall Northeast Bakersfield Water Supply Project plan. This item was discussed at some length with comments from Mr. George Nickel, a director of Olcese Water District. Staff indicated a recommendation would be made to the Board by the next meeting. No action required or taken by the Board. 7G. A letter was received from Porter-Rob'ertson Engineering & Surveying requesting a water supply to property near Seventh Standard Road and Snow Road for a proposed future development project. The property is owned by Etcheverry Farms in an unincorporated area, and receives agricultural water for the present farming operations via the Kern River Canal & Irrigating Company, which is owned and operated by the City of Bakersfield. The landowners will be applying for a general plan amendment to the County under the "2010 Plan" and need a balanced water supply for the project. If the landowners wish to proceed i with the plan amendment, and request the City provide a water supply, they must file a covenant against the property that requires annexation to the City of Bakersfield. The i ~ covenant requires annexation of the land as soon as it becomes contiguous to the City limits i in order to receive the City water supply. The landowners have said they are not opposed ~ ~' to annexation and will initiate the annexation proceedings. At this time, staff is asking the Board's permission to allow the covenant to be filed. After some discussion a motion was made by Boardmember Smith to proceed with the recommendation to file a covenant for annexation. Motion carried. 8. Closed Session Boardmember Salvaggio adjourned the meeting to Closed Session at 5:25pm. Boardmember Rowles attended the dosed session for discussion of the first case and was absent, due to a conflict of interest, during the dosed session for the second case. Closed session reconvened at 5:45pm. Boardmember Rowles returned to the meeting. Closed session action. Update from staff on two items, no action taken. 9. A motion to adjourn was made by Boardmember Rowles at 5:45pm. Motion carried. Mark Salvaggio, Chair ~ ' City of Bakersfield Water Board Sharon Robison, Secretary City of Bakersfield Water Board