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HomeMy WebLinkAboutRES NO 67-75 RESOLUTION NO. 67-75 ARESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD APPROVING PRINCIPLES OF SETTLE- MENT OF PENDING LITIGATION WHEREAS, the Kern Delta Water District, a California Water District, filed an action in eminent domain entitled "KERN DELTA WATER DISTRICT vs. KERN ISLAND WATER COMPANY, et al.," Ventura County Superior Court Case No. 58140, seeking to condemn portions of properties acquired by the City in settlement of other City litigation; and WHEREAS, the City was served in said action as a Doe Defendant; and WHEREAS, the City's Water and Growth Committee, staff and water consultants have met with the District's committee, staff and consultants; and WHEREAS, the City's Water and Growth Committee, staff and water consultants recommended that further negotiations be authorized for final settlement of said action in accordance with the principles hereinafter set forth. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield as follows: 1. That the said committee, staff and consultants are hereby authorized to enter into negotiations for final settlement of the above-referenced Kern Delta litigation, to take effect upon "closing" of the settlement agreement with Tenneco West, Inc. and its subsidiaries in accordance with the following principles: a. Kern Delta Water District to make payment of three and a half million dollars ($3,500,000) to City or its designee. b. City to transfer all of the City's right, title and interest of any nature or description in and to the following: (1) Facilities and physical properties of the Kern Island Water Company, including the utility facilities, and properties of the Kern Island Canal, Buena Vista Canal, Eastside Canal, Farmers Canal, and forty-nine percent (49%) of the Carrier Canal; but excluding the utility facilities and properties of the Ashe Water Service Area of said Kern Island Water Company; (2) Any and all water rights of Kern Island Water Company, whatever they may be; but excluding any water rights of the Ashe Water Service Area; (3) Any and all rights, privileges, licenses, .easements, and the like arising by reason of contractual arrange- ments made by, for or on behalf of Kern Island Water Company, whatever they may be; but excluding any said interests of the said Ashe Water Service Area; (4) A specified right, which may be stated by formula or otherwise, to continue Kern Island's historical use of Isabella Storage upon the same terms and conditions as have historically prevailed. Both parties should use their best efforts to achieve a formula which does not impair either the Kern Island historical use or the y s intended future use of the Cit ' available storage space. c. Said payment by said District to the City should constitute full and complete settlement of all claims of the defendants served in the above-referenced lawsuit, except the County of Kern, including any claims for costs, attorneys' fees, expert witness fees, and the like. _ d~_ The manner of settlement is open to negotiation and may be made in any mutually agreeable form. Both parties should use their best efforts to reach said settlement at the earliest possible time and, in so doing, should use their best efforts to remove any impediments thereto, legal or otherwise, which may presently exist. e. In addition to the City's retention of all utilities facilities and properties of the said Ashe Water Service Area (which is not to be considered a part of the property and rights to be acquired by Kern Delta), the City will acquire the privilege of renting conveyance capacity in Kern Island Facilities acquired by Kern Delta, from time to time, and upon such terms and conditions, and subject to such charges, restrictions and limita- tions, as may be mutually agreed upon at the time a request there- for is made. f. Kern Delta will agree to assist the City in whatever way it can toward completion of the City's acquisition of Tenneco West, Inc. properties and assets and the "closing" of said settlement. Kern Delta should further agree that it will not institute any action designed to obstruct or hinder such acquisi- tion except and unless such action is deemed necessary for the protection, preservation or defense of Kern Delta property, facilities and/or water rights acquired by virtue of the subject settlement. Both Kern Delta and the City of Bakersfield should mutually agree that neither party will institute any action against the other party except and unless such action is deemed necessary for the protection, preservation or defense of the water rights claimed by the instigating party. 2. That a copy of this Resolution shall be certified by the City Clerk and transmitted to Kern Delta Water District. o0o I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on the 27th day of October, 1975, by the following vote: AYES: COUNCILMZN BA~(I'ON, BLEECKER, CHRiSTZN,.SF.N, Mf. DD~RS, ROG~RS, 80~E3, STRONG NOES: COU~CILMEN: ABSENT COUf~CtLM~N: ~STAINING COUNCILMEN: .... CITY.'~~E~and E fficio Clerk of the CounCil of ~~~ Bakersfield AP~??,~..^~'-'~h~s':'27t day of October, 1975 'h c t f f ~',"~,;~ Bakers ield APPROVED- as- to form: CITY ATTORNEY o/~~ akersfield