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HomeMy WebLinkAboutSan Luis Water District Transfer and Exchange of Water for Water Yrs 20132015/L 5f23/2ù/3 :6,coPz.og)- LUo)(r .f¿LEtrOOø>l¿EoC)ı =() AGREEMENT FOR TRANSFEII AND EXC}IANGB OF WÀTER FOR WATER YEARS 2()I3 - 2015 Tlús Agreernent for Tlansfer and Exchalìge of Water for Water Yeat's 2013 -2015 ("Agreeruent") is rnade and effective as of Jurle 18, 2013 by and betrveen (i) the City of Flesno, a California ¡Ìlunicipal corpolation ("City") and (ii) the San Luis Watel District, a Califomia rvater district ("SLWD") rvitlr refelerrce to the follorving facts: A. Cit1, ¡ur the rìght to receive Class I rryater from the Friant Division of the Centlal Valley Project ("CVP") under Contract No. 14-06-200-8901D ("CVP Corttract Watet") with the United States Bureau of Reclamation ("Reclamation"). B. On or about Septembel 13, 2006,a Stipulation of Settlement $'as entered in the litigation entitled Natural Resoulces Defense Council, et al. r'. Kirk Rodgers, et al., United States District Court, Eastem District of California, No, CIV. S-88-1658-LKK/GGH ("SJ Rivel Setllenrent"). C, In Malch 2009, the San Joaquin River Restoration Settlenrent Act (Public Law l l l-l I (H.R. 146); "SJ River Restoration Act") u,as enacted as required by and as a meclranisrrr to irnplement certain portions of the S.T River Settlement. D. Together, the SJ River Settlement and the SJ River Restoration Act provide for certain environlnelltal restoration activities along the nrain stenr of the San Joaquirì River, refened to as the "San Joaquin River Restoration Prograur" or the "Restoratiou ProgLant". Put'suallt to the Restoration Prograrn, thc Urúted States Bureau of Reclamation ("Rcclaruation") periodically releases a portion of the Friant Division CVP u,ater supplies, including those associated rvith the City CVP Contract Water, 1o supplenrent San Joaquin River flow ("Restolatiort Flows"). E. Also pursuant to the SJ River Settlement and the SJ Rivel Restoration Act, a portion of the Restoration Florvs are rccaptured by Reclauration and made available to the Friaut Di'i,ision contractors, irrcluding the City, in the San Luis Reservoir (the "Recaptured Water"). F. Recaptured Water is most easily accessible at the San Luis Reseloir. SLWD is geographically best located to access and obtain deliverl,of Recaptured Water ftom San Luis Reseloir. G. The quantity of Recaptured Watel available highly variable and based ou annual rainfall, snow pack, anticipated runoff and the magnitude of the Restoratio¡¡ Florvs and monthly opelational adjustments. The City arrticipates that variable aurounts of Recaptured Water rvill be available tluough Water Years 2013 - 2015 (March l, 2013 - February 28, 2016). H. Tlrrough this Agreernent, the City and SLWD interrd to coordinate their use of a portion of the Recaptured Water l-or in'igation of penlanent crops rvithin SLWD sen,ice area ancl to o¡rtirnize the use and availability of t'egional u'ater supplies. THEREFORE, tlte parties agree as follou's: Water lixchalge Âgreenlent CITY- SL\\ID: W]' l3-l 5 037324\0024\10460927. l -l- L Water Transfers and Exchanges, The City shall make available to SLWD the elrtil'e ar¡ount of Recaptured Water available to the Ciq'duling the ternt of tlús Agreetnent, except for': a) u¡r to 1,500 AF iu Water Year 2013, and b) up to I,000 AF in each of Water Years 2014 and2015. The City and SLWD shall coordinate tlteir usc of the Recaptured Water to ¡raxinúze its use and undeltake all leasonable effofis nccessal'y to eflecfuate the lrausfers of Recaptured Water fi'om the City to SLWD as provided in this Agt'eeurent. 2. ater. a. For Water Year 2013, the City shall take all reasonabll'necessary steps to transfer to SLWD and SLWD shall take all reasouable steps to take delit,cly altd nake rcasonable and beneficial use all Recaptuled Watel urade available to City by Reclauration in the San Luis Resen'oiL, provided that City reserves up to 1,500 AF for other ¡rutposes. Reclamation's luost recent forecast allocates to the City up to 5,052 AF of Recaptured Watel in Water Year 2013 plus 130 AF fi'orn Water Year' 2012for a total of 5,182 AF available irr the San Luis Resen,oir. b. O¡ or before June I of Water Years 2014 and 2015, the City shall provide wl.itten notice to SLÌWD of the estimated quantity of Recaptuled Watel available for tt'ansfet' to SLV/D for the applicable'Water Year'. SLWD shall be obligated to pay for arrd accept delivery of the full amount of Recaptured Water wlúch Reclatuation lnakes available to City in San Luis Reservoir 3. Paytueut. a. For Water Year 2013, SLWD shall make payment to City of $1,067,780 (one million, sixty sevelt thousand, seven huudred eiglrty dollaLs; $290 per AF tinres 3,682 AF) within 30 days of the date of Reclamation authorizes the transfer and delivery of the Recaptured Water available to SLWD for'Water Year 2013. b. For Water Years 2014 and 2015, SLWD shall make paytnent to City for fift1, percent (50%) of the Recaptured Water made available to SLWD for that Watel Year, The balance of the arnount owed to the City for'Water Years 2014 and 2015 shall be paid on or before February 28,2015 and Februat'y 28,2016. c. The magnitude of each paynrent shall be calculated by multiplyiltg the applicable price times the applicable AF transfenecl to SLWD. The applicable price shall be based on Reclarnation's final determination of the percentage allocation of agricultural watel nade available to South of Delta CVP conlractors fol the applicable water year', with the associated price per AF as set forlh in the following table: Water Exchange Âgrccnìcnt CIT\'- SLWD: \\'\' l3- I 5 03 73 24\0024\ l 0,1 6092'l .t 2 South of Delta CVP Agricultural Contractor Allocation (Final Percentage Set by Applicable Price pel AF for Recaptured Water ($/ar¡ Reclamation 0 425 400 10 t5 20 25 30 35 375 325 290 260 235 215 40 190 45 165 50 145 55 and above 130 d. The City sliall rnake timely payrnent to Reclamation for any arrd all charges for the Recaptured rWater to the point of that water becoming available to SLWD in San Luis Reservoir. e. In addition to the payurents provided in sections 3.a tluough 3.c, above, SLWD shall be resporrsible for any and all costs associated u'ith tìre delivery and use of the Recaptured Water fi'om San Luis Resen,oir. f. On or about Aplil 15 of each year during the tenn of this Agreernent, the City and SLWD shall reconcile the amounts paid and owed, based on the actual quantity of Recaptured Water transferued to SLV/D each Water Year and the applicable price. Any amounts owed shall be dt¡e and payable within 30 days of each annual reconciliation. 4. Rescheduling. Upon request of SLWD and full payment having been made to tlre City b¡, SLWD, the City sltall request that Reclanation reschedule any Recaptured Vy'ater purchased by SLWD hereuncler rentaining in San Luis Reseloil at the end of the Water Year. SLWD shall be responsible for all Reclamatiort ol'other charges for rescheduling the Recaptuled Water and shall bear any and all rvater losses that might occur. 5. Transfer Instluctions. To accornplish the water transfers provicled in this Agreement, for each Water Year the City and SLWD shall anange to corrrplete a Notice of Tt'ansfer in a fotrn substantially siurilar to Attachnrent A. The transfer form for Watel Year 2013 is providecl as Attachnrent A. 6. Counterpaús, 'fhis Agreetnent rrtay be executed irt counterparts by thc palties. Iìacsimile signatures shall be binding. \\¡aler Exchange Âgrccnrcrtl CITY- Sl-\\rD: WY l3'15 037124\0024\t0460927. I I-J- 7. Elltile Aqreement. This Agreenrent constitutes the erttire agleernent betu'een thc palties u'ith tespect to the subject nlatter heleof, All prior agreelìtellts u'ith respect to that subject rnatter, u4rether verbal or rvlitten, ale hereby superseded in their entiret¡, by tlús Agreenrent and are of no furthel force or effect. Arnendments to this Agreettrent shall be effective only if irt u,riting, and then only vi4ren signed by the autholized replesentatives of tlte respective parties. 8. Tirne of the Essence. Time is of the essence and the peforurance by the parties of this Agreentertt. 9. Spesific Perfonnance, The parties acknoq'ledge that the rvater to be transferred and exchanged under this Agreement is u¡ìique, and that the failure of the City oL SLWD to perfolrn under this Agreemeut may uot be reaclill, contpensable in ¡nonetary datnages. Therefole, in addition to any other remedies available at lau' or in equity, in tlte eveut of a breach or tlrreatened breach of this Agleement, the City and SLWD shall each be entitled to specific performance of this Agreeruent. 10. Severability. If an¡, provision of tlús Agreement is detemrined by a court of conrpetent jurisdiction to be void or unenforceable, and that plovision cannot be leformed to be enfolceable consistent rvith the overall intent of this Agteentent, tlte entire Agleetueut shall be void and unenforceable. 11. Ambieuities. Tlús Agreenrent shall be interpreted as if it had been jointly drafted by both parties. Therefore, the normal rule of construction that arnbiguities are constnted agairtst the draÍìer is heleby rvaived. 12. Notices. All iiotices urrder this Agreenlent shall be effective (i) when pelsonall¡' deliveled, (ii) rvhen sent by facsimile on a business da1' bet'rveen the ltours of I a.m. and 5 p.m. (rvithlvritten confirnration of tlansmission), at the nuurbers set forth belorv, provided that a copy is tnailed as iltdicated below, or (iii) tluee bnsiness days after deposit in the United States urail, registered or ceÍified, postage ftllly prepaid and addressed to the respective patties as follows: To Cit1,; To FID: N4artin A. Querin, PE, Assistant Director of Public Utilities City of Fresno, Depar-tnent of Public Utilities 2600 Fresno Stleet Fresno, CA 93721 Facsirnilc No.: (559) 488-1024 Telephone No.: (559) 621-8600 Martin Mclnt¡'re, General Manager San Luis \\/ater District 1015 6tl' Streel Los Banos, CA 93635 Facsinrile No.: (209) Teleplrone No.: (209) 826-4043 ol' such other address ol facsimile nt¡nrbel as the parties nray ftonr tinre to tinrc designate in rvt'iting. As a nlatter of convenience, horlcver, cournunications betu'een the City and SL\\¡D -4- \\¡ater DxchangeAgreement CITY- SL\\ID; \\'Y l3-¡5 037324\0024\10460927 I shall, to lhe extent feasible, be conducted olalll, by telcphone or in persor), and/or tluough lhe patties' r'es¡rective counsel, lvilh sucll conlnrt¡nications to be confinned and rnade effective in r.vriting as set forth above plovideci no such oral notice or conrnrunication shall be effectivc unless so confinned in u,riting. 16. Further Action. The pailies agree to perfomr all furlher acts, and to execute, acknou4edge, and deliver any documelits that may be reasonabl¡,necessal'y, applopliate or desirable to can'y out the pulposcs of tlús Agreerrrent. 17. No Third Part.v Beneficiaries, This Agrcement does not create, and shall not be coustrued to create, au¡, t'ights enforceable by any person, partnelshþ, corpolation, joint venture, limited liability compalty ol other form of orgarrizalion or association of any kind that is rrot a party to this Agleement. 18. Envilomnental Compliarrce. The obligations of the parties under tlús Agreenrent ale ex¡rressll,couditioned upon: (i) compliance with the Califomia Enviromncntal Quality Act ("CEQA") and all other applicable envilorunental larvs rvith respect to the actions contemplated by this Agreement, and (ii) the receipt of all necessary goveuuuental and third parly corrsents and approvals for those actions. Each part5' shall pronrptly prepare all ap¡rLopriate envilolunental documents, if any ale required, for it to undetlake the actions contemplated in this Agreement, The parties shall coopelate to diligentll, conrplete all enviromnental revierv lequired in order to inrplement this Agreement, and shall use reasonable efforts to reduce any ovedap in analyzing, mitigating, or stud5'ing e¡x,ironnlental impacts assocìated rvith the actions proposed in this Agreenretrt. Notu,ithstanding any other provision of this Agreement, no action shall be taken to effect the actions contemplated by this Agreement, and no otlrer action shall be taken that corunits auy ntaterial resot¡rces of anl'part)', until all requiled environnental revierv is conipleted and all parties have independently nrade all findings required by CEQA and other applicable e¡rviromrental larvs. If, upon cornpletion of such envirorunental review, a party finds olre ol'more significatrt, unrnitigated envirorunental inrpacts resulting flom the actions contertrplated by tlús Agreement and cannot nlake a furding that the benefits of the proposed projcct outrveigh the irnpact ol inrpacts, or that the impacts can be mitigated to a level belorv significance, then this Agreement shall termìrrate rvithout further obligation or liability of any party. Neither the execution of this Agreernent, nor auy prelinrinaly steps taken to impleutent this Agreemeut, sltall be takeu into acconnt in deternrining whether mitigating or avoiding any significant inrpact is feasible. [co n f i nued on Jbl I ow in g pu ge/ \\/aler lìscharrge Âgreenrent CITY- SLWD: NY I 3- l5 037324\0024\10460927. I -5- 19. Attomeys' Fees. In the event of any action between the parties seeking enforcement or interpretation of any of the tenns and conditions of this Agreeureut, the pret'ailing parfy in sucb action shall be arvarded its reasonable costs aud expenses, including, but not limited to, taxable costs and reasonable attorne¡'s' fees. IN V/ITNESS WIIEREOF, tlie parties have executed this Agreement as of the date first above q'ritten. CITY OF FRESNO, a Califouria municipal corporation SAN LUIS WATER DISTRICT a California rvater distlict B)': By: Patrick N, 'Wiemiller Dilectol of Public Utilities ATTEST: WONNE SPENCE, CMC City Clelk, Citl' s¡Pt'.ttto APPROVED AS TO FORM: DOUGLAS City A By: PrintNdrfie: Robert J. Sapersteiu Title: Special Counsel to the City Attorney \\tater Exchange Agreerne nl CITY- Sl-\\rl-): NY l3-l 5 037324\0024\r 04ó0927. I Martin Mclntyre General Manager -6- ATTACHMENT A NOTICE OF WATER TRANSFER 2OI3 WATER YEAR TIIIS NOTICE OF Ì/ATER 1'RANSFER 2013 'WA'IER YEAR ("Notice") is provided as of June 18, 2013, by the CITY OF FRESNO, hereinafter refetred to as "City", and SAN LUIS V/ATER DISTRICT, hereinafter referred to as "SLWD" with leference to the follou'ing facts: A. The United States Bureau of Reclamation "(Reclamation") has most recently forecast the Citl' u'¡11 be allocated up to 5,052 AF Recaptured Water in Water Year'2013 plus 130 AF from Watel Year 2012 for a total of 5,182 AI available in the San Luis Reservoir as a result of the implernentation of the San Joaquin River restoration activities. B. The City and SLWD intend to opliurize the effrcient use of available watel l'esoulces. TFIEREFORE, subject to Reclamation's approval, the Parties irttend to effectuate the tbllorving transfer of Centlal Valley Project Recaphrred Water: l. To Sau Luis 'Water District: a. The City does hereb¡' transfer to SLWD all of the Recaptured Watel made available to the City by Reclanration, less up to 1,500 AF, for use by SLWD pursuant to the tentative schedule attached hereto as Exltibit 1. b. The City shall pay all Reclamation rates and charges associated rvith Recaptured Vy'ater reaching the San Luis Reservoir'. c. SLWD shall be responsible for all rates and charges for storage, reschedulitrg ancl delivery of the Recaptured Water fi'om San Luis Reseryoir. 2. SLWD shall enst¡re that the transferred Recaptured Water is put to reasonable and beneficial nse in accordance rvith State and Federal law, including Reclamation law. IN WITNESS THEREOF, the parties, tluough their duly authorized representatives, lìavc executed this Notice as of the day and year first above rvritten. CITY OF'FRESNO a California n'runicipal corporation SAN LUIS \ryATDR DISTRICT a California inigation district By: Patrick N. Wienriller Dircctor of Public Utilities \\/a{er lìxchangc Agrccnìcnl CIT\'- S f ,\\¡t): NY Il- l .5 037324\0024\r 0460927. I Martin Mclntyre General Manager -7- EXIIIBIT 1 Schedule to SLWD Water Exchan gc ÂBreer¡ent C l'l'Y- SL\VD: \\tY I 3- I 5 037324\0024\ I 0460927. I -8-