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HomeMy WebLinkAbout06/01/89 COMMUNITY SERVICES DEPARTMENT PAUL DOW, Manager GENE BOGART, Director of Water Resources FLORN CORE, Assistant Director of Water Resources FRANK FABBRI, Parks Superintendent, 320-3117 JIM LEDOUX, Recreation Superintendent, 320-3701 MIKE SIDES, Sanitation Sul~rintendent, 320-3114 MEETING NOTICE A Special Meeting of the City of Bakersfield Water Board will be held on Thursday, June 1, 1989, at 5:15p.m., in the CIT~ MANAGER'S CONFEP. ENCE ROOM, 1501 Truxtun Avenue, Bakersfield. Call meeting to order. Roll Call - Board Members: Salvaggio, Chairman; Peterson, Ratty The following will be discussed items : 1. Truxtun Lake safety issues. (REFERRED BY CITY COUNCIL). 2. Olcese Water District 13-year water requirements. (FOR BOARD ACTION). 3. Water sale and repayment proposal with Olcese Water District. (FOR BOARD DISCUSSION). 4.· California Water Service Contract update. (FOR BOARD DISCUSSION). 5. Mainline extension agreements - various locations. (FOR BOARD INFORMATION). 6. Mainline extension refund assignments. (FOR BOARD INFORMATION). 7. Adjournment. Gene f Water Resources POSTED: May 31, 1989' 4!01 TRUXTUN AVENUE · BAKERSFIELD, CALIFORNIA 93309 - (805) 326-3715 ~ SPECIAL MEETING t WATER BOARD'- CITY OF BAKERSFIELD JUNE 1, 1989 5:15 P.M. The meeting was called to order at 5:20 pm,. by Councilman Salvaggio in the City Manager's Conference Room. The roll was called as follows: Present: Salvaggio /Chairman); Ratty Absent: Peterson Minutes of the Water Board meeting held on August 3, 1988 were omitted from the agenda and will be approved at the next Water Board meeting. Several Truxtun Lake safety issues were brought before the Board. After some discussion Councilman Ratty made a motion recommending this item be tabled until the next meeting. Motion passed. Mr. Bogart (City), Mr. Daniel (City Attorney's Office) and Mr. Stetson (Consulting Engineer) presented the Olcese Water District 13-year water requirements before the Board. As explained by staff, when the Olcese area was originally proposed for annexation to the City, one of the conditions for annexation was that it would provide its own water supply to the annexed area. Certain assurances were made by Mr. George Nickel that this would be done. Agreements with the City were then entered into assuring that sufficient water supplies were being assigned by the Nickel Interests to the Olcese Water District. Due to the nature of the high-flow water rights being transferred, it was required that Olcese maintain a 13-year water supply in the City's 2800 acres to insure water would be available 'to ~Olcese Water District during dry cycles on the Kern 'River. The primary source for the 13-year water requirement is provided from the Lower River {La Hacienda) water entitlement on the Kern River. Since the Olcese Water supply stored in City's 2800 acres is presently greater than the 13-year requirement for Olcese Water District, Mr. Nickel would like to sell that portion in excess of the Olcese requirement to the State Department of Water Resources. In order to allow Olcese to declare a portion of this stored water as "option" water, Olcese Water District recently passed a resolution that would allow Olcese to have a first priority to use other Nickel water supplies in addition to the water stored in City's 2800 acres. To provide this additional water supply, Mr. Nickel is willing to dedicate his riparian water rights, two water wells located near the mouth of Kern Canyon and up to 300 acre feet annually of his Carmel water right to Olcese Water District to supplement the Olcese water stored in City's 2800 acres. Conceptually, the plan is sound in that provides additional sources of water to Olcese but staff indicated that there are some problems with the way the documentation is written. The City will need a firm commitment to transfer these rights before it can modify the contract with Olcese to include these other sources of water to meet the 13-year requirement. Staff is asking the Board for authorization to continue to get that firm commitment and required documentation. A motion was made by Councilman Ratty for staff to continue negotiations on this. Motion passed. The water sale and repayment proposal with Olcese Water District was brought before the Board by Mr. Bogart. In agreement 77-07 between the ................ City and Olcese Water'Dist-rictT Olcese had the right' to construct water ~' - wells on the City's 2800 acre property for the purpose of extracting water supplies previously spread and banked by Olcese. This water is then exchang,ed for Kern River water upstream of the 2800 acre site and used for agricultural and domestic purposes within the boundaries 'of Olcese. The 1977 agreement requires that the City allow Olcese Water District to receive a credit against extraction fees payable to City until the total cost of the wells (plus interest) is credited back to Olcese Water District. To eliminate these accumulated well credits (the well cre- dits now total approximately $837,870), City staff proposes to sell to '~Ol~e~e Water District, in-place, approximately 20,947 acre-feet of City water currently banked underground in the 2800 Acres at a value of $40.00 per acre-foot. This would be in-lieu of a cash payment by Olcese to the City. The Board indicated that staff continue discussion with Olcese and bring a proposed agreement back to the Board for consideration. The California Water Service contract was presented to the Board, for information and discussion, by Mr. Core. The present contract was entered into in 1980 and is automatically renewable on an annual basis. The growth of the City's system has been rapid and the present contract has certain terms and conditions that are outdated. California Water has sent the City a new contract proposal for consideration. Staff requested and received Board direction to investigate this proposal for comparison to the present contract. For Board information Mr. Core presented Mainline extension Agreements the City has with Oceanic Communities, Inc. and DeWalt-Porter Civil Engineerqng. The Mainline Extensions are for various locations. Also, for Board information Mr. Core presented Mainline Extension assignments with Oceanic Communities, Inc. which have been reassigned to new owners. The meeting adjourned at at 6:00 pm.. Mark Salvaggi o City of Bakersfield Water Board Sharon Robisoh-, Secretary City of Bakersfield Water Board