HomeMy WebLinkAboutAgenda Report - April 2, 2008 E-13AGENDA ITEM EAS
is% CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing City Managerto Execute EBMUD Protest
Dismissal Agreement
MEETING DATE: April 2,2008
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute a protest
dismissal agreement with the East Bay Municipal Utilities District
(EBMUD).
BACKGROUND INFORMATION: In 2007, the City filed a protestwith the State Water Resources
Control Board over the proposed extension of one of East Bay
Municipal Utilities District's (EBMUD) Mokelumne Riverwater rights.
The protest process includes a time period in which the parties are
expected to attempt to negotiate a resolution of the protest. In 2007, Council directed staff to seek to
resolve Lodi's protest in a way that would allow Lodi to utilize its purchased water from the Woodbridge
Irrigation District (WID) year-round rather than during the March thru October season as presently
allowed.
Staff has worked with EBMUD and WID officials and has an offer from EBMUD to allow for up to 1,000
acre-feet of water to be delivered to Lodi during the winter season. The water would be counted toward
our total annual amount of 6,000 acre-feet. In effect, EBMUD is agreeing to store the water for Lodi for
subsequent release at no additional cost to Lodi. This agreement would be memorialized in an
agreement between EBMUD and WID (as part of an agreement addressing the WID/Stockton water sale,
similar to what was done in 2003 with the WID/Lodi sale) and a "protest dismissal" agreement between
Lodi and EBMUD. The draft protest dismissal agreement is attached.
FISCAL IMPACT: There are no direct impacts; however, obtaining the ability to use our
allocation year-round could mean substantial cost savings in sizing the
water treatment plant, as well as providing operational efficiencies. In
addition, resolvingthe protestwill save tens of thousands of dollars in
potential legal and engineering costs to pursue the protest through the State Water Board.
FUNDING AVAILABLE
Not applicable.
Richard C. Prima, Jr.
Public Works Director
RCPIPJF/pmf
Attachment
APPROVED
Blair Ki Manager
K:\WP1WaterICEBMf1DProtestDismissalAgmt.doc
3/27/2006
SETTLEMENT AGREEMENT
East Bay Municipal Utility District — City of Lodi
This Settlement Agreement is entered into by and between the East Bay Municipal Utility
District (EBMUD) and the City of Lodi (Lodi), hereinafter collectively referred to as the
"Parties," this day of 92008.
WHEREAS, EBMUD releases Regulated Base Supply water to Woodbridge Irrigation
District (WID) pursuant to a series of agreements between the two agencies, including the
Agreement entered into in 1965 and the Third Supplementary Agreement entered into in
2003; and
WHEREAS, on May 13, 2003, WID and Lodi entered into a Purchase Agreement (Lodi
Purchase Agreement) under which, among other things, WID will provide to Lodi from
March 1 through October 15, up to an annual average of 6,000 acre-feet of conserved
water per annum out of WID's pre -1914 water rights portion of its Regulated Base
Supply; and
WHEREAS, one reason for the Third Supplementary Agreement was to resolve
disagreement between EBMUD and WID over the provision of WID Regulated Base
Supply water to Lodi for municipal purposes, and the disagreement and its resolution are
referenced in the 13th and 14th Recitals to the Third Supplementary Agreement; and
WHEREAS, Provision 12 of the Third Supplementary Agreement between EBMUD and
WID provides that WID shall not divert any Regulated Base Supply water after October
31 st of any year; and
WHEREAS, Lodi has recently determined that the preferred alternative for enhancing its
water supply is to construct surface water treatment works and deliver treated water to
Lodi's customers; and
WHEREAS, to facilitate its plans, Lodi wishes to receive 1,000 acre-feet of water out of
WID's pre -1914 water rights portion of its Regulated Base Supply for purposes of
operating its proposed surface water treatment plant during the winter months from
October 15 of one year through the end of February of the following year; and
WHEREAS, on January 17, 2008, to facilitate Lodi's plans and allow an additional water
sale to the City of Stockton, WID entered into the "First Amendment to Agreement for
Purchase of Water from Woodbridge Irrigation District by City of Lodi" (First
Amendment) under which, among other things, WID allowed Lodi to bank up to 42,000
acre feet of unused water until October 15, 2010 for later usage and to extend the term of
the Lodi Purchase Agreement by four years, to October 15, 2047; and
Whereas, EBMUD and WID contemplate entering into a Fourth Supplementary
Agreement to address issues regarding WID's sale of water to the City of Stockton and
provision of water to the City of Lodi; and
WHEREAS, on February 9, 2007, Lodi filed with the State Water Resources Control
Board (SWRCB) a protest against EBMUD's petition to extend its Camanche Permit No.
10478 (Lodi Protest); and
WHEREAS, EBMUD wishes Lodi to dismiss the Lodi Protest; and
WHEREAS, in return for Lodi dismissing its protest against EBMUD's Camanche
extension, EBMUD is willing to amend its agreements with WID to allow and provide up
to 1,000 acre-feet of water out of WID's Regulated Base Supply from October 15 to the
end of February, thereby allowing WID to in turn provide said water to Lodi during the
winter period (October 15 to the end of February) pursuant to the Lodi Purchase
Agreement as amended.
NOW, THEREFORE, THE PARTIES DO AGREE AS FOLLOWS:
1. As provided below in Section 2, EBMUD agrees that upon receiving a written
request from WID, EBMUD will provide up to 1,000 acre-feet from the pre -1914
water rights portion of WID's Regulated Base Supply over the period from
October 15 of one year through the end of February of the following year for
purposes of providing winter water to the City of Lodi pursuant to the agreements
between WID and Lodi. This commitment will not commence until EBMUD and
WID enter into a Fourth Supplementary Agreement.
2. Such winter flows when requested by WID -shall be deducted from the quantity of
Regulated Base Supply water which WID is entitled..to receive and divert under
its agreements with EBMUD for the following March 1 through October 15
period. These deductions will be made whether or not Lodi takes delivery of the
water and will be triggered by WID's request. Once started, such winter flow
shall be at a uniform rate. WID and EBMUD shall meet and confer in a timely
manner to determine an actual winter flow schedule if EBMUD or WID wishes to
modify the uniform flow schedule. Requests to modify the uniform schedule
shall not exceed one per month during this winter period.
3. Within ten (10) business days from execution of this Agreement, or execution of
the 4h Supplemental Agreement between EBMUD and WID, whichever is later,
Lodi shall dismiss its protest of EBMUD's Camanche permit (Application 10478)
time extension petition and submit a letter to the SWRCB requesting the dismissal
of the Lodi Protest. Lodi will not take any action to oppose EBMUD's petition to
extend its Camanche Permit.
4. In the event that Lodi is not able to use the full extent of its contract water under
the Lodi Purchase Agreement and its amendments, and Lodi elects not to bank
said unused water under the terms of the Purchase Agreement and amendments,
Lodi agrees to pursue with WID any necessary agreements to allow the sale to
EBMUD of any unused water provided by the Lodi Purchase Agreement and
amendments. The purpose of such agreements would be to allow EBMUD the
2
right to purchase Lodi's unused water at a price and terms to be determined
between Lodi and EBMUD.
IN WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement
as of the day and year first above written by their respective officers thereunto first duly
authorized.
EAST BAY MUNICIPAL UTILITY DISTRICT
am
CITY OF LODI
Rv
President
Secretary
Blair King
City Manager
Kancli Joni
City Clerk
APPROVED AS TO FORM:
VA
3
D. Stephen Schwabauer
City Attorney
RESOLUTION NO. 2008-53
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO EXECUTE
PROTEST DISMISSALAGREEMENT WITH THE EAST
BAY MUNICIPAL UTILITIES DISTRICT
WHEREAS, in 2007, the City of Lodi filed a protest with the State Water
Resources Control Board over the proposed extension of one of the East Bay Municipal
Utilities District's Mokelumne River rights; and
WHEREAS, the protest process includes a time period in which the parties are
expected to attempt to negotiate a resolution of the protest; and
WHEREAS, City Council directed staff to seek to resolve the protest in a way that
would allow the City of Lodi to utilize its purchased water from Woodbridge Irrigation
District year-round rather than during the currently allowed March through October
season; and
WHEREAS, the East Bay Municipal Utilities District has offered to allow up to
1,000 acre-feet of water to be delivered to the City of Lodi during the winter season; and
WHEREAS, this agreement would be memorialized in an agreement between the
East Bay Municipal Utilities District and the Woodbridge Irrigation District and a protest
dismissal agreement between the City of Lodi and the East Bay Municipal Utilities
District.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a Protest Dismissal Agreement with the East Bay
Municipal Utilities District that includes provisions for winter season water for the City of
Lodi.
Dated: April 2, 2008
...................................................................
hereby certify that Resolution No. 2008-53 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 2, 2008, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Katzakian,
and Mayor Mounce
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
f Ihl Q1A Ai— ---
NNIFE M. PERRIN
Deputy City Clerk
2008-53