HomeMy WebLinkAboutResolutions - No. 2008-08RESOLUTION NO. 2008-08
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING AMENDMENT OF WATER SALE
AGREEMENT BETWEEN WOODBRIDGE IRRIGATION
DISTRICTAND THE CITY OF LODI
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
find that California Environmental Quality Act review of the Amendment is not required
because there is no potential cf a significant effect on the environment and, therefore,
approves the amendment to the Water Sale Agreement between Woodbridge Irrigation
District and the City of Lodi, as shown on Exhibit attached hereto.
Dated: January 16,2008
hereby certify that Resolution No. 2008-08 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 16, 2008, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Katzakian, and Mayor Mounce
NOES: COUNCIL MEMBERS— Hitchcock and Johnson
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS — None
RANDI JOHL
City Clerk
EXHIBIT A
FIRST AMENDMENT TO AGREEMENT
FOR PURCHASE OF WATER FROM WOODBRIDGE
IRRIGATION DISTRICT BY CITY OF LODI
This First Amendment to the May 13, 2003 Agreement for Purchase of Water
4:rorn the Woodbridge Irrigation District by the City of Lodi is entered into by the parties
this day of --52007.
WHEREAS, the parties entered into an Agreement for Purchase of Water trout
the Woodbridge lrrigation District by the City of Lodi on May 13,2003 ("2003
Agreement") providing that Woodbridge Irrigation'District (District) would provide
6,000 acre feet of water per year to the City of Lodi (City), subject to dry year
curtailments and the City's ability to take the water, under the terms set forth in the 2003
Agreement, for a period of forty (40) years (until May 13,2043); and
WHEREAS, Section 8.a of the 2003 Agreement allowed the City to bank up to
18,000 acre feet of unused water during the initial three years under the 2003 Agreement.
to allow the City time to develop its plans for utilization of such water; and
WHEREAS, the City has taken more time than anticipated to study alteruativC
methods of using the water provided by the District, including groundwater -recharge or
by direct use after treatment, and consistent with the District's recommendation, the City
has determined that its preferred alternative is to construct treatment works and deliver
the treated water to the City's customers, but the City has not yet finalized its plans for
utilizing the 6,000 acre-feet of water per year made available under the 2003 Agreement;
and
WHEREAS, City expects to commence using the water purchased under the 2003
Agreement within the next four years. and the City has requested that the term of the
2003 Agreement for the purchase of the water from the District be extended for
approximately four years, to October 15, 2047, and that it also be allowed until October
15, 2047 to bank any unused water under the Agreement f= later usage; and
WHEREAS, tate District I S also currently negotiating and agreement with the City
of Stockton for the sale of surplus water of the District to Stockton, and it is necessary to
make some changes to the District's 2003 Agreement with Lodi so that the contract rights
to tlxe two Cities will not be in conflict with Each other;
NOW, THEREFORE, THE CITY OF LODJ AND THE WOODBRIDGE
IRRIGATION DISTRICT AGREE AS FOLLOWS:
1, The final sentence of Section 1 of the 2003 Agreement is amended to read as follows:
Any of such water which is not taken.by the City in that initial year shall be
included as a part of the 18,000 acre feet of carryover water which the City may
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take at a later date as provided for in paragraph 8 hereof
2. The first sentence of Section 3 is amended to read as follows:
The District agrees to deliver the water to the City at the location of the District's
new fish screen at the Main Canal Intake Headworks at __Lower
North Lower Sacranicnto Road, Woodbridge. and also at any mutually agreeable
location or locations on the District's Canal that may be determined at a later date.
3. Subsection b of Section 3 is amended to read as Follows:
b. At such times as it is possible for the District to deliver water during the
remaining months of the year, or to deliver water in excess of 6,000 acre feet
during the period from March 1 through October 15, then by mutual agreement 01
the parties, delivery of such water to the City niay be made by the District. The
City shall pay the District $100 per acre foot for any such additional water
delivered to the City. The determination of whether any such water is available
for delivery shall be made solely by the District. In the event that both t1le City of
Lodi and the City of Stockton request any such available water during the sante
period(s) that the water can be delivered, the water shall be apportioned between
them if necessary in the manner and tunes that they shall agree upon. In the event
they do not agree, such water shall he apportioned between them by the, District in
the mdo of 50/50, or one-half to each; provided that, if such apportionment would
result in either party losing any deficiency curtailment water banked to the credit
of that party because ofnon-use within the required eight-year period under
Section 8.b., that party shall have a first right to such portion of the available
water that will avoid such loss.
4. Sections 4(a) and 4(b) of the 2003 Agreement ("Tears of A.greentent") are
amended to read as follows:
4,(a) This Agreement shall be effective from the date o f execution hereof, and
shall remain in effect until October 15,2047, unless extended. Payment by the
City for the water made available by the District during the four-year extension
under this Amendment, i.e., until October 15, 2047, will continue to be on the
same terms as proyidrJ itt 90b6rt 1 of the 2003 Agreement, to wit, thv bairn
payment of $1,200,000 per year as escalated annually commencing on January 1,
2010, as provided in Section 3.e of the 2003 Agreement.
4.(b) Upon receipt by the District of a written notice and request for renewal
from the City at least two years in advance of the tormination of the Agreement,
the District agrees to renew -this Agreement for an additional forty (40) year term,
on terms and conditions that are reasonable and equitable, provided that the price
for the water upon renewal will he at the then fair market value of the water, but
not less than the price being paid by Lodi under the 2003 Agreement (solid new
price to also be adjusted thereafter in accordance with the CPI formula i the
existing Agreement).
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5. A new Section 4.1 is added to the 2003 Agreement as follows:
4.1. Right to Purchase Additional Water. The City shall have the further right during
the initial term of this Agreement to huy up to an additional 6,000 acre-feet of water
from the District based upon the annexation of additional lands within the District to
the City of Lodi after the completion and commencement ofoperation of the City's
new Water Treatment Plant, and which as a result of such annexation will he taken
out of agricultural production, as follows. For each acre of land so annexed after such
date which is now zoned agricultural and which has been irrigated with District
water:
• and for which a tentative subdivision map is approved for such acreage for use
other than agriculture,
• anti which is to be sen ed a water supply by the City of Lodi's utility water
system,
the City will be entitled to purchase an additional 3.0 acre- feet of wales- per SLIc , aca-e
from the District, on the same terms and subject to the same conditions herein
applicable to the 6, 000 acre-feet under this Agreement.
6. Section 7.a. of the 2003 Agreement is amended to react as follows:
a. The District agrees that it will deliver up to 6,000 acre feet per annu n to the
City under this Agreement except to the extent that the District's Regulated Base
Supply of 60,000 acre feet under its Agreements with East Bay Municipal Utility
District is reduced in dry years by thirty-five(35) percent. In the event of such a
reduction, the District may reduce the amount of water to be provided under this
Agreement by up to fiftypercent (50%). District shall on or about May i of each
year make a preliminary estimate ofwhether the City's deliveries may he
curtailed that year, and will provide a final estimate of any curtalIment on or
about July 1. in such event, the City shall only be obligated to take 35% of its
estimated delivery before July 1 in that year. There shall be no reduction in the
amount of the City's annual payment to the District in such years under paragraph
I -
7. A new Section 7.1 is added to the 2003 Agreement, as follows:
Section 7.1. Lodi acknowledges that District is negotiating with the City of
Stockton to sell a base supply of 6,500 of water to the City of Stockton, at a price
per acre-foot which is approximately the same price as provided in the District's
May 13, 2003 Agreement with Lodi. The delivery of the 6,500 acre-feet of water
to Stockton shall be subordinate to Lodi's right to receive its 6,000 acre-feet of
water, provided that:
a. Lodi waives and will not exercise, under the last sentence of paragraph
4(c) of the 2003 Agreement. its right of first refusal to purchase the 6.500
acre-feet of water being sold to Stockton; that
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h. The deliveryof the 6,500 acre-feet of water to Stockton, and Stockton's
right to purchase additional water based upon the future annexation of
agricultural lands within the District to Stockton, shall take precedence
over Lodi's rights to purchase additional water under paragraph 3.b; and
Loch's right to receive banked water under. paragraph 8 of the 2003
Agreement will he on a parity with the right of Stockton to receive banked
water under its Stockton's agreement with Woodbridge, i.e_, in the event
both Cities want to withdraw more banked water than is available that
year, such water N ill be allocated one-half to each unless they agree on
another allocation, as provided in the new subsection c added to paragraph
8.
8. Section S is amended as follows:
8. .Carry -oven of Entitlements. Unused water may not be carried over by ft City
frons year to year except that the right to receive waler may be "bunke:d" as
follows:
a. If during the period from May 13,2003 to October 15, 2010 _the
City does riot take the water which is available to the City under this
Agreement or rakes less than the amounts which are available, then the
City may carry over and have credit for such water not taken during that
period. not to exceed a total of, 6.000 acre feet per year or a total of 42,000
acre feet, for later delivery during the remaining term of this Agreement,
i.e., until October 15, 2047, at such times as the City requests delivery of
the water and the District has extra water available as determined solely by
the District. There will he no additional charge for the delivery of such
hanked hater.
b. If after October 15,2010, delivery of water to the City is curtailed under
paragraph 7.a. by reason of a dry year condition or by District's maintenance or
other District activities, then the City may carry over and have credit for the
amount of such curtailment for later delivery at such time(s) as the City requests
delivery ofthe water and the District has extra water available as determined
solely -by the District. Any City credits for curtailedsega-tentsof carryover water
shalt expire at the end of a*t (8) yem fim the Cl'ld of the period in which the
curtailment for that segment of curtailed water occurred. Such credits for delivery
of curtailed carryover water within said eight-year period may extend beyond the
ten -al -nation of this Agreement on October 15, 2047. There will be no additional
charge for delivery of such hanked water.
c. The determination of whether any such banked water or curtailment Water is
available for delivery shall be made solely by the District. In the event that both
the City and the City of Stockton request such water during the same period(s)
that water is available for delivery, the water shall he apportioned between them i f
necessary in the manner and times that they shall agree upon. In the event they do
not agree, such water shall be apportioned between them by the District in the
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ratio of 50/50 or one-half to Lodi and one.-halfto Stockton.; provided that, if such
apportionment would result in either party losing any deficiency curtailment water
banked to the credit of that party because of non-use within the required eight-
year period under Section it.b., that party shall have a first right to such portion of
the available water that will avoid such loss.
d. Except as provided in subparagraph a, no credits shall accrue for water that. is
available to but is unused by the city.,
9Section 14 o f the 2003 Agreement is arrended to read as follows:
14. City Use of District Rights of Way. The District agrees to cooperate with City
and to agree to the City's use of any District right of way along the District's
Main Canal needed by the City for the conveyance or distribution of water it
obtains from the District, proVidcd that such use does not interfere with District's
use of its right of way and that District's right of way permits such use by City.
`The District agrees that City may continue any such use of th, e right of way
established during the terra of this Agreement after the tenn of this .Agreement
expires.
10. Section 14.a, is added to the 2003 Agreement as 1'oll.ow5:
14.a. District Installation of Quality Control Structures on City's Storm Water
Discharge Locations. Under the City's October 20, 1993 Storm Drainage
Discharge Agreement with the District, City has the right to discharge into
District canals, waters collected by the City's storm drainage system (excluding
industrial waste and sewage effluent), under the temps and conditions set forth in
said Agreement. District shall he entitled at its option to cotastruct or install i.eom
ti -me to time at convenient locations on the City's property at or near any of the
City's stormwater discharge points into the District's canal system, and to operate
and maintain, at the District's cost, filtration/sedimentation structures or other
water quality control or improvement devices at said point(s), subject to the City's
prior approval the plans and specifications for such installations, which approval
shall not be unreasonably withheld. Nothing herein shall alter City's obligations
under said Agreement with respect to the quality of the storm waters and storm
drainage into the District's Canals, and all provisions thereof shall continue in full
force and effect.
l I . All terns and provisions of the 2003 Agreement remain in ftdI force and effect,
except as they are expressly amended or modified by this First Amendment to
Agreement.
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Attest:
Attest:
IN WITNESS WHEREOF, the parties. hereto have executed this instrument on the
day of_ 72007
WOODBRIDGE IRRIGATION DISTRICT
CITY OF LODI, A MUNICIPAL
CORPORATION
By
, City Clerk
APPROVED AS TO FORM:
. City Attorney
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. Mayor