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Home My WebLink AboutResolutions - No. 2009-32RESOLUTION NO. 2009-32 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING SECOND AMENDMENT OF 2003 WATER SALEAGREEMENT BETWEEN WOODBRIDGE IRRIGATION DISTRICTAND THE CITY OF LODI NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the Second Amendment to the 2003 Water Sale Agreement between Woodbridge Irrigation District and the City of Lodi permitting the City of Lodi to sell a portion of its banked water, as shown on Exhibit attached hereto; and BE IT FURTHER RESOLVED that the City Council does hereby authorize the City Manager to execute the amendment. Dated: March 18, 2009 ------------------------------------------------------------------- ------------------------------------------------------------------- I hereby certify that Resolution No. 2009-32 was passed and adopted by the City Council of the City of Lodi in a regular meeting held March 18, 2009, by the following vote: AYES: COUNCIL MEMBERS —Johnson, Katzakian, and Mayor Hansen NOES: COUNCIL MEMBERS— Hitchcock and Mounce ABSENT: COUNCIL MEMBERS— None ABSTAIN: COUNCIL MEMBERS— None PFD J1' OHL City Clerk 2009-32 SECOND AMENDMENT TO 2003 AGREEMENT FOR PURCHASE OF WATER FROM WOODBRIDGE IRRIGATION DISTRICT BY CITY OF LODI, TO PERMIT LORI TO SELL PORTION OF ITS BANKED WATER This agreement is entered into between the City of Lodi (City) and the Woodbridge Irrigation District (District) this day of , 2009. Recitals A. On May 13, 2003, City entered into a 40 -year Agreement with District for the ,Cay'.s purcha w of water ir= District enhiled "Agreement. forWurcliase of Water from the Woodbridge Irrigation District by the City of Lodi" (and..h&inafter referred to as the 2003 Agreement). The Agreement provided for the City's'urclape of a base supply of 6,000 acre-feetper annum (plus additional amounts on specified `copditions), for a payment commencing at $200 per acre-foot or $1,200.OQ0 annually for -.the base supply, subject to later annual price adjustments, the watex16 be delivered to City from March 1 through October 15. Under the Agreement, the'urater must be used within =City's service area, and City can not assign or transfer the right to,tlie water: without the consent of the District. B. The 2003 Agreement provides for appal water is used by City. Payments of $3DO 00:1 Agreement commenced on October 1, 266- treatment and use o fthe water from the Dfstri enter a contract with the,:f of HDR, Inc. ii complete design, to -c-;level reaeiyfor bidding works, which would `treat the water delivered No District water has been takezox:used to d yments to'D strt of whether or not the uarterly by Citytobistrict under the 'levater mustbe treated. Plans for liawe`leei:delayed. City is preparing to n amount-`bf $2.9 million dollars for the construction, of new treatment plant .:District for use by the City customers. `:by the City under the 2003 Agreement. C.-..'Paragraph8of the "2003 Agreement provides that City can carry over and have credit: for unused waterduring thi"sritial three years, of up to 18,000 acre-feet, referred to as "bank., water" in the'AgreemerW-for later delivery to City in subsequent years in which District.has water available'for such deliveries. D. On January 17, 2008, the parties entered into a First Amendment to the 2003 Agreement, which;'. -':a` oong other things, extended the 40 -year term of the 2003 Agreement, an additional four years and five months, and which also extended City's right to carry over and bank an additional 24,000 acre-feet of water that was unused by the City up to October 15, 2010, thus giving City a right to bank a combined total of 42,000 acre-feet. E. This Second Amendment to the 2003 Agreement is intended to provide District's consent to City, working with the District's Manager, to pursue agreements to sell up to 18,000 acre-feet of its first three years of banked water to others. NOW, THEREFORE, WOODBRIDGE IRRIGATION DISTRICT AND THE CITY OF LODI AGREE AS FOLLOWS: 1. City may pursue, working tnh the District's Manager, a sale agreement or agreements with others for their purchase during the years 2009,2010 and 2011, of up to 6,000 acre-feet of water per year banked by the City, for a total of 18,000 acre-feet of banked water if 1) in the year of sale District's Regulated Base Supply entitlement under District's Agreement with EBMUD is a full 60,000 acre-feet, and if 2) the District is able to make the water to be transferred available from its Regulated Base Supply for delivery in the year of sale, as solely determined by District.. Any resulting. agreement shall be subject to the District's approval and the District shall be a party.`1f District's Regulated Base Supply is less than 60,000 acre-feet in any such year, City: may pursue the sale of not more than one-half of 6,000 acre-feet in such year subject to the same terms and conditions of availability. District will be unable to finally, determirie..whether District's Regulated Base Supply is less than 60,000 acre-feet;uritil- July 1 of each- year. District shall have no responsibility or obligation to City if District cannot or does:not make such water available for transfer, or if any such transfer;.fails forany reason beyoid;the control of District. However, City will retain its banked wrigh;tsif the transfer does fail. ater 2. The sale price payable to Lodi shall be not less -than $200 per acre-foot, plus in year 2011 the inflator factor which coltrenes in that yeaiiriahe 2003 Agreement. City shall pay to District (in advance if requested'1?y,District), all c`sts'and expenses (legal, engineering or otherwise), incurred or estimated-`ly District be. incurred, in assisting and/or implementing the sale by City. 3. District sha11 not be`6bligated to approve any sales that impose or potentially impose any conditions%upon District's water rights: or requirements upon District that are unsatisfactory to District 4 .City agiees that the City's proceeds of any such sale shall be used solely for the planning, design an 6r construction of its planned treatment plant facilities or to reimburse :other City funds used for such purposes. 5. City:acknowledges the value and benefit to it of the District approving such sales of water by the City pursuant to this Agreement, in that District itself could undertake for its own bzhri -ht to sell directly any surplus water it may have available during the next three' ;years. Nothing herein shall prevent or preclude District also selling any surplus water that it has available in any such year above the amount sold by City, or from selling any surplus District water if City fails to sell such water, or if City sells less than 6,000 acre-feet, from selling any surplus water above the amount of water sold by City. 6. This Agreement does not authorize or establish a precedent for District's approval of any future sale by City of any banked water it may have under its 2003 Agreement with District, either beyond year 2011 or beyond 18,000 acre-feet, and 2 nothing herein shall be construed to indicate that District will authorize or consent to any future sale of such water. 7. The recitals herein are general background descriptions, but each and every provision in the prior 2003 Agreement and the 2008 First Amendment to Agreement between the parties, remains in full force and effect according to their terms, except as herein expressly modified. IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective on the day and year above set forth. WOODBRIDGE IRRIGATION DISTRICT Attest: By W 1!axn_!Stokes. President Anders Attest: CITY OF LODI CORPORATIOT k MUNICIPAL , Mayor 2.13.09 3