HomeMy WebLinkAboutAgenda Report - October 1, 2014 C-13AGENDA ITEM c,lu
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AGENDA TITLE:
MEETING DATE:
PREPARED BY:
Adopt Resolution Authorizing City Manager to Execute Agreement with
North San Joaquin Water Conservation District for Water Purchase
October 1, 2014
Public Works Director
RECOMMENDED ACTION Adopt resolution authorizing City Manager to execute agreement
with North San Joaquin Water Conservation District for water
purchase.
BACKGROUND INFORMATION: North San Joaquin Water Conservation District (District) was
organized in 1948 under provisions of the Water Conservation
District Act of 1931 . The District's jurisdiction covers approximately
150,000 acres including the eastern half of the City of Lodi and portions of northeastern San Joaquin
County, as presented in Attachment 1.
The District has an appropriative right to divert water from the Mokelumne River under Permit No. 10477
for up to 20,000 acre feet annually that is water surplus to East Bay Municipal Utility District's needs for
December 1 to July I of the succeeding year. Permit No. 10477 limits total diversions to 80 cubic feet
per second and limits diversion from any one facility to 40 cubic feet per second.
The District has used up to 9,500 acre feet annually of water under Permit No. 10477 in the past.
However, due to the interim and unreliaþle nature of the Mokelumne River water supply and the
extensive use of more convenient private groundwater wells, the demand for Mokelumne River water
within the District is currently approximately 3,000 acre feet annually. The District needs to make
significant improvements to the south District conveyance facilities that would increase demand for
Mokelumne River water.
The District offers to sell the City 1 ,000 acre feet annually at a price of $100 per acre foot less any
delivery charges. The District's water would be made available to the City from October 15 to March 30,
based upon an availability determination made the prior May 1. The District's water would be delivered
to the City's Water ïreatment Plant via existing Woodbridge lrrigation District WID) facilities.
The City receives 1,000 acre feet annually of water under its Water Purchase Agreement with WID during
the period from October 15 to March 1. The District's water would supplement the City's supply during
this period, allowing the City to reduce groundwater pumping and, thereby, recharge the groundwater
basin. The City's demands during this period exceed 2,000 acre feet annually so that some groundwater
pumping would be required. The City's groundwater pumping and maintenance costs are approximately
$100 per acre foot pumped.
APPROVED:
K:\WP\PROJ ECTS\WATER\NSJCWCD\CWaterPurchase.doc
hen S , City Manager
911612014
Adopt Resolution Authorizing City Manager to Execute Agreement with North San Joaquin Water
Conservation District for Water Purchase
October 1,2014
Page 2
The proposed Agreement for Purchase of Water from the North San Joaquin Water Conservation District
by the City of Lodi (Agreement) is provided as Attachment2. The terms of the Agreement are outlined
below.
a. Up to 1 ,000 acre feet annually of water will first be available October 15 of each year, based
upon the District's determination of its availability on or about May 1.
b. The transfer period for the District's water to the City is October 15 to March 30 of the
following year.
c. East Bay Municipal Utility District must agree to facilitate the delivery of water from Permit
No. 10477 to the City during the transfer period.
d. The City will pay the District $100 per acre foot delivered with payment due on the
September 15 preceding the transfer period. lf the District delivery of water falls short of the
purchased amount, a credit will be applied without interest to the next transfer period
purchase.
e. The City will notify the District by July 1 of the purchase amount and delivery schedule for the
succeeding transfer period.
f. The City and District can mutually agree to purchaseisell additional water at the same price
should it become available.
g. The City shall use the water only for municipal, industrial and irrigation uses within the place of
use of Permit No. 10477.
FISCAL IMPACT The cost to purchase the additional surface water supply will largely be
offset by reduced costs to pump groundwater. A slight incremental cost
increase will occur attributable to increased power and chemical costs at
the Water Treatment Plant.
FUNDING AVAILABLE: Water Operating (180461)
.tN, t ^¿Jordan AyVS - -f -
Deputy City Manageil/lnternal Services Director
F. Wally lin
Public Works Director
FWS/pmf
Attachments
K:\WP\PROJ ECTS\WATER\NSJCWCD\CWaterPurchase.doc 911612014
Attachment 1
North San Joaquin Water Conservation District
RESOLUTION NO. 2014-184
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING A WATER PURCHASE AGREEMENT
WITH THE NORTH SAN JOAQUIN WATER
CONSERVATION DISTRICT
NOW, THEREFORE, BE ¡T RESOLVED that the Lodi City Council does hereby
approve the Water Purchase Agreement with the North San Joaquin Water
Conservation District, as shown on Exhibit A attached hereto; and
BE lT FURTHER RESOLVED that the City Council does hereby authorize the
City Manager to execute the agreement.
Dated: October 1,2014
= = == = = == = = = = = == == === = = === == == = = = == == = = = = = = == == = = = = = = = = = === = = = == == ==
I hereby certify that Resolution No. 2014-184 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held October 1,2014, by the
following vote:
AYES COUNCIL MEMBERS - Hansen, Johnson, Mounce, and
Nakanishi
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS - None
COUNCIL MEMBERS - Mayor Katzakian
COUNCIL MEMBERS - None
NIFER
Clerk
RO N
2014-184
Exhibit A
.:,
NoRTHSANJoÄQUINWATERcoNSERvÄItoNDISTRICT
RESOLUTION NO.2014.09
APPROVINC AGRDEMENT FOR PURCTIASE OF WATER FROM TH'E NORTH SAN
JOAQUIN WATER CONSERVATION DISTRICT BY TIIE CITY Otr' LODI
pHEREA5, the North San Joaquin water Conservation Þistrict ("Þistict") holds
appropriative water righiPermit 10477 toìppropriate water from the Mokelumne River;
WHEREAS, part of the authorized place of use.*{*t Permit 10477 includes the
City of Lodi and on, oiifn" authorized purpo*åt of use under Permit 10477 is domestic and
industrial use; and
WHEREAS, the ciry of Lodi has the ability to takg detivery of water-from the
Distr.ict,s p",-irtO+r? from the Woodbridge lrrigation Distriot intake noar Lodi Lake for use
in the City's water treatment plart; and
WHEREAS, the City and District both suppoÉ tho use of surfase water by the city
of Lodi, in tieu of groonã*ui"r, to h.lp redltce ou"tuti demand for groundwater in the City
and Díst¡ict and aiã in the recovery of groundwater levels' and
WHEREAS, the Ðistricf cuuently is not using all of the water available under
Permit 10477 and desires to çncourege the use of more iatcr urrder Pe¡rnit 1047? within its
Distri ct boundar:ies, and
WHFREAS, the rransfer of water frorn Pcrmit 10477 from thc District to the City
will be cost nsutral to t¡l-City,'*hioh witl s&ve an equivalent amount on roduced gtoundwater
pumping, and will U" nn"n"iåiy benefioial to the District to fund additional inftastructure to
i¡tiliie the other water available under Fermit 1A477; and
TVHEREAS, the District's Board of Drrcctors has rcvicwed the proposed
agreement with the City at the Board's regular meeting held on Soptember 29,2014' and
approves of its terms, and
TVHEREAS, the proposed traqsfer is Contingent on-obtaining the necessary change
approvals from the Stpie WateiResoufces Control Eoard fcir delivery of water through the
Úoodbridge lrrigation Distriot intake; and
WHBREAS, the Distriot completed California Ënvirorunental Quality Act review
of the potential transfer oiwater ro the iity of Lodi in its Initial_$tudy and Mitigated Negative
Declaiation cerrified on March 10, 2014, and filed the Notice of Detennin¿tion with the St¿te
ðt**ingLouse on March ll, z0 l1,Süate Clearinghouse Number 2014022009 .
" NOW, THEREFORE, BE IT HEREBY RESOLVED by the Board of Directors of the
North San Joaquin Water Conservation District as follows:
Page I of2
l. Ttre Board hereby approves thc form of tbe AGREEMENT FOR PURCHASE
oF wATER FRqM rHE NSR'ÍT{'S¿N ¡O*QUIN WATER CONSERVATION DISTRIçT
BY THE CITY OF LODI attached hereto as Exhibit A.
Z, The Board has determined that sntering into this agreement with City of l-odi is in the
best interests of the District.
3. The president of ttre Board is horeby authorized to sign and deliver, after consultation
with the District's General Counsel, the a.geement in the fonn presented to this mÊeting, with
such non-substantive changes, insertions ind deletions as may be recommended by the General
Counsel; the president's silning of the agreement being conolusive evidence of such approval'
4. The president and any other ofücers, employees and agentß of fhe District shall be,
and each of them hereby is, authôrized to give of tåke all approvals, conseûts, directions,
instructionÊ, notices, orä*, requests, indt¡nifications and other actions pennitted or required
by any of the docum"ots auihorìzed by this ResolutiorU and to take any such aotion that zuch
authorized representative, with the adviOç of Disffict's Gstlcral Counsel, may deem nocessary or
tlesirable to further the purposes of this Resolution'
5. All actjons heretofore taken by the officers, employees and agents of the District in
connecrion wirh fhe mattcrs authorizsd Uy ttris Resolution are hereby ratified, approved and
corrtrned.
6. This Resolution shall take effcct from and afrer its adoption'
Moved by Director
resolution be adopted.
Ptinn . scconded by Director{4nlqra, tlrat the foregoing
Upon roll call the following vote was had:
Ayes: * Dircctors;Noes: -A Directors:
Absenl , t Directors:
Abst¿in: O Directors:
The President declared the rçsolution adoptod.
I, Thomas Flinn, Secretary of thc Bosrd of Direc-'tors of fle NORTH SAN JOAQUIN
is a full, trueWATER CONSERVATION DISTRICT, do hereby
and correct copy of a resolution duly adopted at an
Directors held the 29th day of Sepæmbø 2014.
CERTMY that the
adjourned said Board of
Page2 ofZ
EXHIBIT A
AGREEMENT FOR PURCHASE OF WATER F'ROM THE NORTII SAN JOAQUIN
WATERcoNsERvATIoNDISTRICTBVTII'ECITYoFLoDI
This Agreement is made and entered into between North San Joaquin Water Conservation
District and the City of Lodi, a municipal corporation' entities located within the County of San
Joaquin, State of Cãlifornia, this
-
day of ' 2014'
Background Recitals
4. The ciry of Lodi (city) obtains its municipal water supply largely from wells located
,
within the city, extracting the water from the undergrourrd aq¡rifer, which is replenished
in part by flows of the Mókelumne River. Lodi desires to acquire a zupplemental surface
water supply to rcduce its dependence upon the wells and the possibla impacts of
eventual overdraft ofthe groundwater supply'
b. North San Joaquin Water Conservation Dishict (District) is a water conservation district
that is organized and exists under the ïVater Conservation Law of 1931' The District's
jurisdiction covers the eäst€rn half of the City of Loili
c, The Disrict has an appropriative right to divert water from the Mokelumne River under
Permit 10477,as amànded on Decemtet I l, t992. Permit 1047? a110ws the District to
directty divert water up to 80 cubic foet per second (cß) from December 1 to July I of the
succeeding year, and store up to 20¡000 acre-feet of w¿ter per yèar to be cotlected from
December I to Júly I of the su"ceeding year' The permit restricts direct diversion to no
rlore rhan 40 cfs * uny on. pufnping facility. The District's-Yater is stored in Carn¿nche
Rçservoir pursuant to un ugrrr*ånt bøwoen tha District an'd Bast Bay Municipal Utility
District (EBMUD).
d. The District can request that EBMUD reloaso thc Distfict's water from Cama¡rche
Rçservoir such that the rcleasecl watcr would flow down river to LodiLake where it
coutd be diverted by the City for delivery to the CiSs surfaoglvvater troatfnent plant via
rbe exisring worÃiag" inieation pisrrict (w.tD) diversion facilities (Point of Delivery)'
e. l¡r order to maxin-lize the use of surface watet, and rgduce the use of grOundwater in the
city, the city and the Þistrict desire to contract frr the city' s purchase of Mokelumne
River water from the Þistrict Bursuant to the terms and conditions set fonh in tbis
Agreement.
NOW, THEREFORE, NORTH SAN IOAQUIN IVATBR CONSERVATION DISTRICT AND
THE CNY OF LOÐI AGREE AS FOLLOIWS:
l.ÏVaterta-beMafleAveilabJetothe-City'.BeginningOctoberls'2015'andcontinuing
rh-rough the term of this Agreement, ttóistiict shãfl sell to thc City up to l'000 acre-feet
of water per Trarrsfer periðd under the terms and conditions herein set forth' For
1
puposes of this Agreement, the term "Transfer Period" means the time period between
October l5't' and March 30ú of each calendar year The Þistrict's obligation to sellup to
1,000 acre-feet of water per Transfer Period to the City is conditioned on the following:
a. There are 20,000 acre.feet ofwater available to the District pursuant to Permit
10477 as determined by May I'r preceding the beginning of the Transfer Period.
For example, water avaitability for the Transfor Period beginning October 15,
201 5 shall be detennined as of May 1,2015.
b, EBMUD has agreed to facilitate the tlelivay of water from Permit 10477 to City
during the Transfer Period on the schedule tequested by the City. City
acknowledges that (l) l)istrict's Pçrmit 10477 provides for direct dive¡sion and
diversion to storage only between December I and July 1 and (2) diversion from
storage between November 5th and March 30'l'will require the agreement of
EBMUD.
c. The City and WID have an agreenrent to allow WID to deliver the purchased
water ûom the Point of Delivery to the City.
d. City has paid District for the water pursuant to Paragraph 2.
e. The State Water Resources Control Board has approved the use of the WID
diversion facility as an authorized point of diversion for Permit 10477 '
2, fayment. City will pay District ONE I.IUNDRED DOLLARS ($100i per acre'foot of
water made available pursuant to this Agreennent, loss any chargas levisd on City by
WÌD to convey said water ftom the Point of Deliveryto City. Payments for wat€r
estimated to be needed under Paragraph 3.a, are due and payable in advance on each
September l5'h preceding the requested rele¿se priod. [f District is unable to cause
water to be released from Camanche Reservoir for City p.wsuant to this Agreement after
City has made payment, City' s psynent shall remain æ a credit toward fftture purchases
pursuant to this Agreement.
3. Sched$ling. Rçleqse. Diver$jqn and Usc.
a, Availability D_ekn¡iqstipn. The Þistrict shall notiS the City of water availability
under Permit 10477 on or about May ldof each oalendar yoar during the term of
this Agreement.
b. Scheduling Rçques!. The City shall notiff the District, no later than July ls of
each calendar year during the term of this Agreement, of the amount of water
requested to bà purchar.ã Uy City during the upcoming October lsth - March
30ü Transfer Period along with a schedule of requested releases. The schedule
2
4,
shalt be subject to District approval, The City shall schedule water such that
requested florv rates are constant for each month ofrequosted release'
c. Release and Diversio-n. uþon receipt of the schedule from the city, the District
wllt request that EBMUD release from camanche Reservoir the water requested
by the City pursuant to the submitted schedule. The water is expected to flow
down rivcr to t odi Lake where it can be diverted by the city at the Point of
Delivery pursuant to an agreenrent between the City and'WID for use of WID's
facilities. The District shatl have no obligations with respect to the facilities used
for the diversion of water from the river by WID or the City'
d. Addiriopal Water. If it is possible for the Þistrict to sell additional water to the
City during the April l* through October l5th period following_the Transfer
Poriod, or to release water in or.r, of 1,000 agre feet dWing the October t5ù
;h.ug| March 30tl'Transfer Period, then by rnutual written agreemont of the
purties, the District may sell additional water to tlre city. The city shall pay the
District $ 100 per acre-ioot of any such additional water released for tho City less
any charges levied orr city by wID to convey said water from the'Psint of
Oetiverylo City. The detcrmination ofwhçther any such wâter i8 available for
release shall be made solely be District'
e, use. The water fi¡rnished by the District under this Agreement shsll be used by
,t. City only for mu¡icipal, i¡dustrial, and inigation uses within the place of use
of Permit 10477.
Tefm of Agreo{nent.
a. This Agreement shall be effeetive from the dato of exooutíon hereol and shallremain
in effeot for a term of five (5) years ftom said date'
b. Upon receipt by the District of written notice aûd foqu€$t for ronewal from the City
on* yu., ûradvance ofthe termination of this Agtoexnent, the Dis'trict egfees to rçnew
this Agreement for an additional five (5) ycar t€'Ír! on te'flns and conditions that afe
reason,¿ble and equitable, and which are mutually satisfactory to fhe District and the
City. This Agleemcnt is subject to up to seven (7) such renow¿ls, for atotal term not
to exceçd forty years.
c. lf the parties agree to renew this Agreement pufsuant to Paragfaph 3'b', the âmounts
payabie to the District under Paragraph 2, shall be increassd by two porcent per year
above the amounts payable during the preceding calcndar year. In the event the
annual change in the ðonsumer Price Index (CPI-W, unadjusted U'S. average)
published in December of e¿ch year by the United States Bureau of Labor Statistics'
ıomrnencing in December in the year preceding such frfth year, has increased more
3
than two (2) percent above the December Index of the príor year, the increases in the
amounts puyáUt. in the next calendar year shall be in the percantage of that increase'
proui¿"¿ìf,ut any sueh annual increase shatl not exceed five percent (5%)'
5. C.ity Pay.ments lp bç Madc from City',$ Water $yFtem Rpve4ueç' The City shall make
paymenrs *4., ttããffiãnt solely Íìom the Revenues (as defined below) of and as
an operating expense J{, ttre Lodi Municipal TVater System (as.dcfined below)' The City
hereby pledges the Revenues to the paynrents required hereunder' Nothing herein shalÌ
be construed as pr:ohibiting the city fi'om using any other fi¡nds and revenues for
purposes of satisfying an/provisio's of this A'treement' So long as the City is in
òompliance with all its obligations hereunder, such pledge shall not prevent its
application of R.evenues to ottrer operating expenses of the Lodi Municipal Water System
or, subject to the payment of such operatiilg expenses, to other lawfrrlpurposes' or impair
the rigirts of any recipient of Revenues lawfully so applied'
,.Revenues" mealts "ail gloss income a¡rd revenue received or receivable by the city from
t{re ownership andopera:tion of tlre Lodi Municipal Wator Syster'4 rhe ¡iross income and
revçnue of which slrall be oalculated in accordance with generally acceptod aCcouutfurg
ffi;ipì.;, i"olo¿i.g all rates, fees, and charges received by the City for watef servico and
connection and hooi-up fees and all other inconre and revenue howsoever derived by the
city frorn the ownership and operation of or arising from the Lodi Municipal water
system, but excluding in all cascs any proceeds or taxes and any refundablc deposits
made to establish "r.ãit,
federal or state glants' or advances or contrihrtion in:aid of
construction."
,,Lsdi Municipal water system" means "the lnunicipal wate¡ systom ofthe cìty existing
on the effective date of this Agreement and all additions, bottor-ments, extensione' and
irnprovements thereto hcre¿fter acquired or consfiucted'"
6. No,Permanent Wgter Rieht..a$d lvqter Availabilify. The parties agree that no pefmÊnent
right ro th, *ut", ffi!ãÇ th* District shall acclïe üo the City except pursuant to and
as limited by the terms of this Agreoment. The City ehall have no clâ¡m for damnges ot
breach arising from the unavailability of water from the District for any caute or
oondition.
7. Banking. The city may ubankn any water that it has paid for that either: a) The city has
not beon able to take dålivery of for any reason; or b) the District has not been able to
deliver. The City shatl have the right to take dolivery of any banked water in any
Transfer period that it is available ,rluring the te¡m of this Agreønent or any extension
thereof and continuing through the tenth year after the expiration of this Agreement or
any extension thereot provided that:
4
a. Delivery of banked water occu¡s in years in rvhich the Disffict has water available
under Permit 10477 (City understands that District does not have a carry-over
storage right in Canranche Reservoir that enables it to store water from year to
year);
b. Detivery of banked water is on a constant release schedule acceptable to EBMUD
and WtD for oPeratignal PurPoses;
c. The city may not rake delivery of banked water such that total deliveries to the
City would exceed 1,000 acre-feet of water under Permit L0477 between
DeÁember ts and November 30'¡' of a given calendar yeaf, unless the Disçict
datermines that it does not have other demands for the water availa.ble from
Pennit 10417.
7.lVaferQu.ality.TernporaryIntem$!ip[ç.q.4dßespofl]iþilityfortbeWaterBeyon{Point
oLReJeagq.
&. The water being supptied to the City is l?w wâter released frorn the Mokelumne
River, and the charaãter or quality of the water ftirnished hereunder may vary from
time to time. The District does not guarântee in any resp€ct the character or quality
of the water furnished pursuant to this Agreement'
b. It is agreed there may be, in addition to shortages of water, tempora¡y discOntinuanc-e
or rçd;c{ion of watei ro be ûrnishçd for the City as her:ein provided, for purposos of
investigation, inspection, maintenance, repair, or replacetnent â$ måy be nocessaryof
auy ofîhe facilities used by tho District for fi,u'nishing water to the City. The District
ugu.t to provide the City notice of suoh temporary discontinu¿nco of reduction of
water as soon as such information is available to the District.
c. The City shall hotd the Disrict harmless from and defend the District fromall claime
Or oxpenses on account of damages or claim of damage of any nature whatsoever that
arise from or relatc to the City's actions in performing this Agreement, inoluding
property damage, personal injury, or death, arising out of or connected Tvith the
ielease, delivery control, caffiâge, handling, use, disposal, or distribution of water
furnished hereunder ar or after the Point of Delivery. The District shall hold the City
harmless fiom and defend the City from all claims or expens€s on account of
damages or claim of damage of any nature whatsoever that arise from or relate to the
District's actions in performing this Agreement, including property damagq personal
urjury, or death, arisLg out of or connected with the release, delivery, control,
caoiàge, handling, ur., dirpotul, or distribution of water furnished hereunder to the
Point of Delivery.
5
I
9
Anearagq in teyments. No water shall be fr¡rnished to the City during any'period itt
*t i.ttìñr ð¡rV *uV be in arrearg in payment of charges accruing hereunder after the
determination on the amount tbereof as above provided. Interest on arrearage in payment
shall be charged at a rate ofone and a half(1.5) percent per rnonth and cornpounded
monthly, commencing 45 days afrer the due date of the payment'
A$signmenr. The provisions of this Agreement shall apply to and bind the successors and
asstg* of the respective parties hereto; but no assignments or transfer of this Agreement
o, uiry part thcreof or interest therein by the City shall be valid unless and until approved
in writing by the District; and no assignment of the obligation to provide or doliver the
water shall be assignable by the Dispict wíthout the written consent of the City'
10. Calif.ornia E¡rvironmental Quality Act and gther Applicable Lawgand Regulations' The
parties underst¿nd *J."gt.u that this Agleement is subject to compliance with the
balifornia Environmental Quatity Act (CEQA) and all other applicable laws and
regutarions. The partios futtber agree the District preparcd and certified an lnitial Study
arù Mitigated Negative Þeclaration on Marc[ 10, 2014 which. covers this Agrcement'
11. Etrtire Agroement. This Agrecment contãins the full and entire Agreement of the parties
and there are no other conditions, either explicit or irnplicit, nor any warranties or
promises other than those contained within the written terrns of this Agreoment'
12. Time of the Essepce. Time is of the essonce in the performance of this Agreement'
13. N-onWaiver. Thc failure of oíther party to enforce or abide by a term or condition of this
Àgreement shall not constitute awsiyër of that te'l:n or condition unfess a written
Agreement is prepared specifTcally providing for the waiver or forgiveness of that term
and such Agreement is executed by eaoh parry hereto.
[agreement confinued on next pageJ
6
14. Date o.f Exeouiioir. The date of executiort of this Agreemettt is the date of execution by
the party last signing the Agreement
IN WITNESS WHEREOF, tho parties hereto have executed this Agreement on the
-day of- 20t 4'
NORTH SAN JOAQUIN WATER
coN ATI
Dated:
Attest:
Dated
Attest:
so{ zq By20t4
2At4
Board Secretary
oc Valente, Board President
APPROVED AS TO FORM:
tr7q"'(Aâ/J.q 4-r*-
Roger Masuda, General Counsel
CITY OF LOÞt, a municipal corporation
By
Stephen Schwabauer, CitY Manager
APPROVED AS TO FORM
Janice D. Magdich, CitY AttorneY
7
O
NûRTH SAN.IüAQUIN W,{TER CONSBRVÅTION DISTRICT
RESOLUTTON NO.2O14-09
APFROVTNG AGREEMENT TOR PURCHASE OF WATER FRÛM T}TB NORTH SAN
JOAQUTI\ WATER CONSERVATION IITSTAICT By THE CrTy OF rODI
WIIEREAS, the North San Joaquin Water Conservation District ("Distlict") holds
appropriative watcr right Permit 1Q477 to nppr:opriate wåter fì'orn the Mokelumne River;
WI"IEREAS, part of the authorized place of use uild$r P*rmit lû477 includes the
City of Lodi and one of tho authorieed purpose$ of use under Fermit 1t477 is donrestic and
i¡lduslrial use; an<l
WI{ERIIAS, tfre City of Lodi has the abitity t* takc delivery of watcr l}om the
Distt'ict's Pernrit 1'0417 fì'om the Woodbridge lrrigation Ðistrict intalce near Lodi L¿ke fior usc
in the Ciiy's water treatrnent plant; ând
WþIEREAS, the City and District both suppCIrt the use of surface water by the City
o1'LotJi, in lieu of grourte{water, [o help reduce overall demand for groundwðter in the City
and District antl aid in the recûvery of groundwater levelso and
WHEIì.EAS, the Districf currently is not using all of the rv¡rter available under
Pernrif ltt477 and desircs to onoourâgç the r¡se ol'more watcr undcr Fcnnit 10477 'ovithin its
Disfrict trountf aries, and
WþIËRËAS, the transtbr of water frorn Permil l{3477 from the üistrii}t to the City
will be cost neutral to th$ City, which will save an equivalent amount on rcduccd glounelwater
pun:ping, and will be finaneially beneficial to the Di*trict to fi¡*d additional infrasruclure to
utilize the other water available under Perynit 1tJ477; and
l¡/HERËAS, the Þistrict's Board of Directorç has reviçwed the propeised
agreemert wilh the City at the Board's regular meeting helci. an Septenrber ?9, 2û14, and
appruves of ifs terms, and
VIHEREÀS, the praposed ttansfcr is contingent *n $btaining the necessâry change
approvals from the State Wqter Reçc¡urces eontrcl Board fbr delivery of water through the
Wooelbridge lrrigation Distric.t intake; and
WHEREA,S, the District completed California Environmental Quality Act review
of the polential transfþr of water to the City of Lceli in its Initial Study and Mítigated Negative
Declaration certi{ied on March 10, 2014, and filed the Notice of Determinetion with the State
clearinghouse on March I I , 201 4, srate clearinghouse Number 20l412ztü9.
NOW, THEREFORË, BË IT HERABY RESOLVED by the Board erf Directots of the
North San Joaquin Water Conservation Disfrict as faliows:
C l3
Page I of'2
l. The Board hereby approvos rhe f'orm of the ÅüREEMENT FOR PURCHASË
OI" WATBR IìROM THE NORTH SAN JOAQUIN WATER CÛNSERVATION DISTRICT
BY THË CITY OF LODI attachetl herero as Exhibit A.
2. The Boarcl has dstermined that entering into this agreement with City of Locti is in thc
bcst intercsts of thc District.
3. The Presidcnt of the Beard is hereby authurized to rign and deliver. afrer consult¡tion
with the l)istrict's Ceneral Cor¡nsel, the agreeme¡it in the forn presented to this meeting, with
such non-subsf¿rntive change$, inscrtians ancl deletions aå may be rscommended by rhe Ceneral
Counsel; the Presielent's signing ol'the agreenrent bsing conclusive evidence of sueh approval,
1. The I'resiclent ¡rnclany olher o{Ticers, employees and agents of the District shall [re,
ancl cach of thenl hercby is, authorized to give or take all approvals, consents, directiorrs,
illstructions, nr:tices, order$, rec¡uests, indemnifications and other actions pennitted or required
[:y any of the tlocumer:ts authorieüd by this Resolution, and to take any such action that such
authorized representative, with the advice of Ðistric.t's tsneral Counsel, n:ay tieem nçressÍu'y or
desirsble tr: further the purposes of this Resoluticn.
5, All actitxs lreretofore taken [:y the offîcers, employees anil agents of the District in
conttcct,ictt with the nìaltcrs authorizcd by this Rcsolution are hereby ratifîccl, approved ancl
coniìrmed.
(>. I'his ltesolutian shall take efTect ftom and after its adoption.
Flf
'rol seoond-ecl by Direeror{Cn[}En, drar rhe fbregcing
Upon roll call the following vote was had:
Moved by l)irector
resolution be adoptee{.
A,yes:
Noes:
Absent:
Abstain:
_+o
-lt
Direc{ors;
Ilirectors:
Direrfrrs:
Dirsctors:
The President declared [he resoluticn adopted,
I, Thornas Flinn, Secretary of ihe Board qril Directors of the N
WATER CONSEITVATION DISTRICT, do hereby CgRTtFy rhar rhe
and corroct copy of a resalution duly atlopted at an adjourned
Directors helcl the 29th ciay of Septenrber 2A14.
ORTFI SA N J0,A,QUIN
is a full. true
said Board r:f
PageZ of2
EXHIBIT A
,A,GRËEMENT FÛR PURCHASE OF \ryATER FRÛM THN, NÛRTH SAN JÕAQUIN
\ryÂTER CONSßRVATION ÐISTRICT BY THE CITY OF LODT
This Agreement is made and entered inta between North San Joaquin Water Conservation
District and the City of Lodi, a rnunicipal corporation, entities located within the County of San
Jorquin, Ståte of Câliftirnia, rhis ** ctay of t4
. Ba{¡kgtq$nd-Rçqitals
ä. 1"he City of Lodi (Cily) obtains its municipal watcr supply largely from wells located
within tlte City, extracting the rv¿ter fi'om the undergrcund aquifer, which is replenished
in part by {lows of the Mokelumne River. Lodi clesires la acquire a supplemental surfbce
v/åter supply to reeiuce its tlependence upon the wells ¿nd the possible irnpacts of
cventual overdraft of thc grounefwatcr supply.
b. Ncrth San Joaquin rffater Conservation ilistrirt (District) is a water couservation district
that is organized and exists under the Water Conservation Law of 193 1. The Ðistrict's
jurisdiction covors tlrc eastern half of the City of Lodi.
The Dislrict has an appropriative riglrt to divert water Êom the M*kelumne River wrder
Pe rmit 1A477 , aç anre ¡rcled cn Decelnber I I, 1992. Fernrit 10477 allows the District to
dir:ectly diver't water up to 80 cubic feet per seeond (cfb) &om Þecembor I to July I of the
succeediug year, and store up to 2û,000 ac¡e-fcef t:rf water per yeaî to be collected Íïom
Decemlrer t to .luly I of the succeeding year. The permit restricts dþecl diversion to no
¡r:ore than 40 cß at any one purnping facility. 'fhe District'$ water is stored in Camanchc
Iìeservair pufsuant to arr agreernent t¡etwcen The District and Eaçt Bay Municipal Utility
District (EBMUD).
d, The District can ¡'equest thât HBMUD relsase ths Ðistrict's water from Camanche
Reservoir sueh that the released water would flow down river fo Lodi Lake where it
could be divcrted by the City fbr delivery tc the City's surf¿ce weter treetment plent viû
rhe existing Woodbridge Ïrig*tion District (TVID) diversion fueiliries (Point of Delivery),
Õ. In order to maximize lhe use af sr¡rface water, and reduce the use of groundwater in the
City. the Çity and the District desirc to eontract f'or the City's purchase of Mokelumne
River water frorn the District pursuant to the terms ånd eonditions sct forth in this
Âgreement.
NOW, TI"TEREFORË, NCIRTI't SAN JOAQUIN WATER CONSERVATTON DISTRICT AND
îHE CITY OF LOÐT AGREE ÂS FOLLOWS:
L lV¿Lqr_lq*bc"l!Íadc-.4-v.¿¡_l_able_ßLr"hç_"Çi¿y*Beginning October 15,2û15, and continuing
through the term of this Agreeme nt, the District shall sell to the City up to 1,00() acre-lbet
of water per Transf,cr Period undcr the terrns anct conditions herein set forth. For
c
t
ptlrposes of this Agreement, the term "Transfer Period" meâü$ the ti¡ne period between
October l5(l' a¡rd March 30rl' of each calendar year The District's obligation to sell up to
1.000 ame-fèet of u'ater per Transfer Period to the City is conditicned on the following:
a. There are 20,00Û acre-fèet of water available to the District pursuant to Permit
1t477 as <Jetermined by May l'r preceding the beginning of the Transfbr Feriod
For example, wåtÕr availability for the Transfer Period beginning ûctober 15,
2û15 shall be determined as of May 1,2015.
b, EBMUD has agreetl to {àcilitate the clelivery of warer li'om Fennit n477 to City
during the Transfbr Period on the schedule requested by the City. City
acknerwledgcs tl'rat (l) District's Permit l$477 provides fur direct diversion and
diversion to stor¿Ige only between December 1 and .luly t and (2) diversion from
stor"âge betwcen N<lve¡irber 5'r'ancl March 3û'1'will require rhe agreement of
EBMIJD.
The City and TVID lt¿¡ve an ågreement to allow WID til deliver the ¡:urchased
v,¡arer {iom the Point of Delivery to fhe Cíy.
d. City has paitl District for the v¿árer pursuant to Paragraph 2"
e, The State Wilter ïì.esources CCIntrÕl Board has approveel the use o1'the tfflD
diversisn {?rcilily as an &uthorized point of diversion ft¡r Permit lç4'17.
z. Pay.menf. city willpay Dietrict oNË HUNDRED ÞoLLARs {$1û0} per acre-tuor of
water made available pursuant to this ,{greemont. Iess any charges levied on City by
WIt ta convey said water í?om the Poir¡t c1'Delivery tCI City. Payments fur water
estimated to be needed under Paragraph 3.a, are due and payable in advance on cach
September l5rh preeeding the requested release period. Iipistriet is unable to cêu¡¡e
rvater to he released fi"om Camanche Reservoir fur City pursuant tc this Agreement after
f ity has made payment, City' s paynent shall remain ns s eredit towartl future purchases
pursuant to this Âgreement.
3. $chçd$li$g. Release, Ðivers,ion And Usc,
a, AvailabiJity Deten¡ination" Thc District shall notify the City of water availability
under Permit 1047'lon or about May lsof each calend¿r yÊer during the term of
this Agreement.
b. $cheduling Rçquçs.t. The City shall notifli the District, no later than July l" of
each calendar yeer during the term of this Agreement, of the amount of wafer
requestecl to be purchased by city during the upcoming october l sth * March
30e Transfer Period along with a schedule of requested releases. The scherir¡le
2
shali be subject to District approval. The City shall schedule water suclr thar
requested florv rates âre constant for each ¡nonth ofrequested release.
c' Rglçôså-atdjDlyqtsia!. LJpon receipt of the schedule from the City, the District
will request that EBMUD release from Camanche Reservoir the wåter rêquested
by the City pursuant to thc subrnitted suhedule. îhe water is expecteel to f'low
down river to L<¡di Lake where it can be diverted by rhe city at the Foint of
Delivery pursuânt tô a,n agreenrent between the Çity and wID fur use af wrD's
facilities. The District shall hår,e no obligations wi{h respect fo the lbcilities used
for thc diversion ol'water fiorn ti¡e river by WIÞ or the City.
d' Àd¿litional-Water, If it is possible for thc District to sell additional watar ro rhe
city during the April I*t through ocmber is'h period lollowing the Transfer
Feriod, or to rçlease water in exçess ol' 1,000 acre lbet rluring the October !Stl'
through March 30ilt Transfer Pcriod, thcn by mutualwritten agrËcmü¡"rt ofthe
parfies, ths District may sell additieinal water to the City. 'l"he City shall p*y the
üistrict S lÛ0 per acre-lt¡ot of any such a<fditional wate¡ released for the City less
any charges leviecl on City hy tülD tÕ convey saiel water from the Point of
Þelivery to Clity. The detenrinatiolr of whether any such water is available for
release shall be made sole ly be District.
e. !se. The water fitr¡rished by the f)istr:ict un<Jer this ,Àgreement shall be used by
the City only fi:r nrunicipal, intlustrial, and irrigatioil uses within the piace of use
of Pcrmit l}{n.
4. Tenn of"Ågrpement.
a. This Agreement shall be effective froln the date of executian hereoi and shall remain
in efïêct fur a term of fïve (5) years liom sajd date.
b. Upon receipt by fhe Ðisfict of written notice arrd request lbr renewal from the City
one ysâr in advance of the termination cf this A,greementu the District agrees to renev/
this .Agrecment for an additional five (5) yeal term, on terms and ccnditions thä¿ âîe
reasonable and equitable, and which are mutually såtis&ctorytû the District and the
City. This Agreenrent is subject to up tû seven (7) such renÕwâls, for a total term nor
to excccd forty years.
c' If the partie$ agree fo renew thir ,4.greement pursuant to Faragraph 3.b., thç amounts
payable tÕ the Ðistrict under Paragraph 2, shall bo increased by üwr perceûr pêr year
above the amounts payable during the preccding ealendar year. In the evenf the
annual change ín the Consumer Price index {CPI-W unadjusted u,s. average)
pttblished in Decsmher of ea{:h year hy the United States Bureau af Labttr Statistics,
çom¡nencing in Decemlrer in the year preceding such fifth year, has increased more
3
than two {2) percent above the Ðecember Index of the prior year, the increases in the
amounts payable in the next calendar year shall be i¡r the percentâgç of that increase,
provided tltat any such annual increase shall not exceed five percent (5%).
5. Cit]¡. Payments to be Mqdg-fron City'.s.Water System Beyenuçs, The City shall rnake
päynents under this Agreement solely äom the Revenuos (as defined below) o{ and as
an operating sxpense o{ the Lçdi Municipal Water System {as defined below). The City
hereby pleelges the Revenue$ to the palmrents roquired hereunder. Nothfurg herein shall
be eonstrued as prohibiling the Clity {rom using any othcr funds anrl rsvenues fbr
puryo$es of satisþing any provisiorts of this Agreemerrt. So long as the City is in
compliance with all its obligafians ltereunder, $uch pleclge shall not prevent its
application of Revenues to olher operating expenses of'the Lodi Municipal Water System
or, subject to the paynent of such aperating expenses. to other lawfr.rl purpûses! or inrpair
the rights of any recipicnt of Rcvcnues lawftrlly so applicd.
"Revenue{i" me¡¡trs "åll gruss income and revenue receivecl or receivable by the City fiom
the ownerslrip ancl operation of the Lo¿liMunicip*l Water Syslem, the $ross inconre and
revcnus of which shall Lrc calculateiJ in accordance with generally acoepted acçou¡{it}g
principles, including all rates, fees, ancl charges reeeived by the City ft>r water ssrvico and
connection *nd hook-up fees and all r,rther inçolrre and revenuc howsoever derived by the
City fiorn the ownershi¡r and o¡:eration of or arising from the Lodi Municipal Water
System. but cxcluding in all case$ any proceeds ¡:r taxesi and any relunclable depos:its
made to establish credit, fbderal CIT ståte grants, or advances or contribution in aid of
ctlnstructi<1n."
"Lodi Municipal Water System" rì*ans "the nrunicipâl ',¡râter $ystçrn of the City existing
on the effbcfive dâte ûf this Agreement and all additions, bette¡ments, extensions, and
imprclvements therctô herer*er acquired or constructecl. "
6, No Fen¡anent Ws[çr Right, and Wale_r_AVailability, The parlies agree that nc perrrunent
right to thc water supplied by the District shall accrue to thÕ City except pursuant ta and
ss lirnited by the tenns erf this Âgreement. The City shall have no clsjrn for damages or
breach arising ftonr the unavailability of water ßcnr the District for any çäu$e or
condition.
7. Ðanking. The City may "bank" any water that it has paid for that either: a) The City has
not beeri able to take deli.very of for any reäson; or b) the Disfriet has not been able to
dcliver. The City shall have the right to take delivery of any banked water in any
Transfer Period that it is available during the term of this Agroement or any extensicn
tlrereof and continuing through fhe tenth year after the expiration of fhis Agreement or
äny extension thereo{ provided that:
4
a. Delivery of banked water occurs in years ilr rvhich the Þistrict has water available
under Perrnit rc477 (City understa¡lds that District does not have a carry-over
storage right in Camanche Rese¡voir that enables it to store rvater {iom vear tc
year);
b. Ðelivery of banked u/årt$r is on a constant relcase schedule acceptable to EBMUI)
and WID firr operational purposes;
c. The City tuay nert take delivery of banked þ'âter such that totaldelive¡'ies to the
city woulcl exceecl 1,000 acre-lìiet of warer undcr Penrrit rc477 between
I)ecember I$ ancl November 30'l'of a given calendar year, unless the District
determines that it eloes not have <lfher <lemands for the water available from
Per¡tit l$47.1,
?. Waler Ouality-Tpnrp<¡rar-v*btcrrypti<l*s. and Rcripo¡qibilíty t¡r;tlrq Water ßEypnd Point
of Relçase.
¿1. J'he water being sup¡:rlicd to the Cily is mw wâter rcleaserj fior¡ the Mokelumne
Ilive¡', and ths clraracler or qualilv af'the rvater fi¡rnished hereuntler ur¿ly väry from
time to time. The District cloes not guarantec in any respect tlre ch¿¡racter or quality
oIthe watcr furnishcd pursuant tr: this Agrecment,
b. It is agreed there may be, in addition to shortages ol'water, tenlporâry eliseontinnance
sr reduction of 'water to be fi.¡rnished fur the City as hcrein provided, for purposes of
investigntion, inspection, r:ain{enance, repaìr, or replacement a.e may be necessary of
any of the fhcilities used by the District fbr furnishing water to the City" The Distriet
¿¡grees to provide the City notico of such temporâ{y discontinu¿nce of rcduction of
wâter a$ soon ES such infcrmation is av¿ilable to ihe District.
The City shall hr:ld the Pistrict hnrmless from ¿ncl delè¡rtf the District flom all claims
Õr expense$ on âccount of damages or claim of damage of any nåhlr* whetsoever thnt
arise frorn or relate to thc City's actions irr performing fhis Agreement, including
property damage, persçnal injury, or death, arising out of or connectsd with the
release, delivery, ceintrol, cariage, irandling, use, dispasal, or distribufion of wate¡:
furnishcd hereunder at or after the Poi¡t of Delivery. ?he Disrrict shall lnld the City
hannless frorn and defenel the City frsrn all claÍms or $xpen$s$ on account of
damages or claim of darnage of any nature what¡aever that arise Êom or relate to the
District's actions in performing this Agreement, including property darnøge, personal
ínjuly, or death, arising ont af or con¡ected with the releåse, delivery, cçntrol,
cariåge, handling, use, disposal, or distribution of wafer ftrrnishecl hereunder to the
Point of Delivery.
C,
5
8. Añ"çårage in Payrncnts. No water shall be turnished to the City during any period i¡
which the City may be in arears in payment of charges accming hereunder affer the
detennillation on the anrount thereof as above prclvieled, Interest on &rrearage in payment
shall be charged at a râte of one and a hall'(l.5) percent per month and compound.ed
rnonthly, commencing 45 clays after thc due date of the payment.
9, Assign¡nent. The provisions of this Agreement shætl apply to and bind the successors aÍd
assigns of the respective parfies heretc; but no assignments or trans{br of'this Agreement
or åfiypart thereof or interest therein by the City shaü b* valid unless and unril approvej
in writing by the District; and no assignmenr of the obligation to provide or deliver the
water shall be assignable by the Distlict without the written cÇnsenr of the City.
It)' Çaji&ru:a -Laxs-a-rd RÊssletiers. The
psrties underst¿nd and agree lliat this Agreemerrt is subject to com¡rlianoe with the
Cali{br:nia E¡rvironmentnl Qualiiy Act (CEQA) and all other applicable laws and
regulations. The ¡rarties li¡rther agree the District ¡:repareel ¿urel certilìecl arr Initial Srudy
anel Mitigated Negative Declaration o¡r March 10, 2014 which çover¡i this Agreernent.
I l. Entire ,A.green¡ent. This Agreement eontains the full and entire Agreement of thc parties
and there are no other conclitions, either explicit or irrrplicit. nor åny warranties or
promises othet than those contained within the written termc of this .,\.greement.
I2. Time ofjhe-Essence, Tinie is of the es$eüce in the perfbrmanre of this Agreement.
13. Nonwaiver. The ftilure of either party to enfbrce or abide by a term or condition of this
Agreement shall not constitute a waiver r:f that lenn or cond.ition anless a written
Â'greement is prepared specilically providing {i:r the waiver or forgiveness of thar term
and such Agreement is executed by each party hereto"
fagreernent ccntinued on next page]
6
14. Ðate-of ExecuiiOn. The clate of cxecution of this Agreement is rhe date of execution by
the party last signing the Agreement.
IN WITNESS WHEREOF, the pârties hereto have executed this.Âgreemenr on the
day of- 201 4.
NORTH SAN JOAQUIN WATER
CÕN ATT
Ðated:
Attest:
D¿rted:
Attest:
€'?'t êq *,2ût4 By
Valente, Boarel President
APPRCIVËD ,4S TO FORM:
{4oq*-?"Yá,,*"u 4*--
Roger Masuda, General Counsel
CITY OF LODi, a municipal corporation
Stephen Schwabauer, City Manager
APPROVNÞ Á,S îO FÛRM
Janice D. Magclich, City Attarney
Board Secretary
2At4 By
1