HomeMy WebLinkAboutResolutions - No. 2022-23RESOLUTION NO. 2022-23
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
PAYMENT OF SUPPLEMENTAL INVOICES TO SETTLE UNDERPAYMENTS
ASSOCIATED WITH WOODBRIDGE IRRIGATION DISTRICT WATER SALE
AGREEMENT CONSUMER PRICE INDEX INCREASES UTILIZING BANKED
WATER CREDITS IN LIEU OF CASH
WHEREAS, in May 2003, the City of Lodi (City) and Woodbridge Irrigation District (WID)
agreed to a Water Sale Agreement (Agreement) which allows the City of Lodi to purchase 6,000
Acre -Ft of surface water from the Mokelumne River each year that is treated for municipal use;
and
WHEREAS, there have been three amendments to the Agreement; and
WHEREAS, the Third Amendment of the Agreement executed in 2012, established that
WID could increase the water cost each year by the annual change in Consumer Price Index
(CPI -W, Unadjusted U.S. Average) published each December up to a maximum of 5%; and
WHEREAS, between the years of 2011 through 2020, WID had been adjusting the
annual cost by a maximum of 2% annually as allowed by the original Agreement and did not
consider the additional CPI increases allowed over this time period that fell between 2% and the
maximum of 5% as per the 2003 original water purchase agreement; and
WHEREAS, this billing oversight resulted in WID under billing the City by $227,162.09
between 2011 and 2020 and was brought to the City's attention in March 2021 by letter; and
WHEREAS, it was proposed the City consider repaying the entire overage amount by
using banked water credits in lieu of a cash payment as the City has amassed over 53,000
Acre -Ft of banked surface water; and
WHERAS, it is unlikely the City can utilize all 53,000 Acre -Ft of banked water by the end
of the Agreement. The current value of each Acre -Ft of banked water is $255. The amount of
banked water credits in Acre -Ft needed to satisfy the under payment of $227,162.09 is 891
Acre -Ft ($227,162.09 / $255 per Acre Ft = 891.83 Acre Ft) leaving a balance of banked water in
excess of 44,000 Acre -Ft; and
WHEREAS, staff recommends authorizing payment of supplemental invoices to settle
underpayments associated with Woodbridge Irrigation District Water Sale Agreement Consumer
Price Index increases utilizing banked water credits in lieu of cash.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize payment of supplemental invoices to settle underpayments associated with
Woodbridge Irrigation District Water Sale Agreement Consumer Price Index increases utilizing
banked water credits in lieu of cash; and
BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol
Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to
make minor revisions to the above -referenced document(s) that do not alter the compensation
or term, and to make clerical corrections as necessary.
Dated: January 19, 2022
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I hereby certify that Resolution No. 2022-23 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 19, 2022 by the following vote:
AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
PAMELA M. FARRIS
Assistant City Clerk
2022-23