A G E N D A - Wheeler Ridge...2019/12/12 · À W H E E L E R R I D G E - M A R I C O P A W A T E R S T O R A G E D I S T R I C T Ž Agenda Item 3.1 MEMORANDUM TO: Board of Directors

Wheeler Ridge-Maricopa Water Storage DistrictA public agency providing irrigation water service to farms at the south end of the San Joaquin Valley

Meeting Location: District Office 12109 Highway 166, 6.5 miles west of Mettler, CA � 661-858-2281

Regular Board MeetingWednesday, December 11, 2019

8:00 A.M.Please note the public portion of the meeting will begin at or after 9:00 A.M.

Please note the closed session of the meeting will begin at 8:00 A.M.

A G E N D A8:00 1. Call to Order

2. Closed SessionConference with Legal Counsel Re: Existing Litigation (Govt. Code § 54956.9(a)):1. Central Delta Water Agency #1 et al v. DWR, et al Re: Monterey Plus EIR/Reverse Validation (DWR)2. Central Delta Water Agency #2 et al v. KCWA et al Re: KFE Transfer Reverse Validation KCWA)3. Center for Food Safety v. California Department of Water Resources Re: Kern Water Bank Revised EIR4. Golden Gate Salmon Association et al v. Ross (National Marine Fisheries Service) Re: California Water Fix

Salmon Biological Opinion5. Bay Institute et al v. Zinke (U.S. Fish and Wildlife Service) Re: California Water Fix Delta Smelt Biological

Opinion6. California Department of Water Resources v. All Persons Interested, etc. “Complaint for Validation” Re: SWP

Contract Extension Amendment (Case 34-2018-00246183)7. California Department of Water Resources v. All Persons Interested, etc. “Complaint for Validation: Re:

WaterFix Bond Validation Action (JCCP 4942)8. Buena Vista Water Storage District v. Kern Water Bank Authority, et al. Re: KWBA Kern River EIR (Case No.

BCV-19-100122)Conference with Real Property Negotiator (Govt. Code § 54956.8)9. District’s Designated Representative: Engineer-Manager

1) Property: State Water Project Suppliesa. Negotiation With: California Department of Water Resources, Kern County Water Agency

and its Member Units, And State Water Contractors10. District’s Designated Representative: Engineer-Manager

1) Property: Water Suppliesa. Negotiation With: Patterson Irrigation District

Conference with Legal Counsel Re: Potential Litigation (Govt. Code § 54956.9(d)(2) and/or (d)(4)):11. One Potential Suit

9:00 Open Session Pledge of Allegiance

3. Attorney’s Report* 1. Appointment of Division 9 Director - *Resolution Required*

4. Minutes* 1. Approval of Regular Board Meeting of November 13, 2019

5. Financial Reports* 1. Filing of Treasurer’s Report * 2. Approve Payment of Accounts Payable

2.1 Director Compensation and Expense * 3. Contractor Selection for Repavement of District Parking Lot

6. Controller’s Report

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1. Delinquent Accounts Report for November 20192. Budget Expenditures Report for October 2019

7. President’s Report

8. Engineer-Manager's Report1. Filing of the Monthly Report2. Water Supply - 2019 SWP Final Allocation of 75%

a. 2020 SWP Initial Allocation - 10%b. 2019 Water Supply/Demand Estimatec. 2020 Water Supply/Demand Estimated. Other Purchases /Exchange

3. Kern Water Bank Second Priority Banking* a. Approval of Form of Second Priority Sub-Account Program Agreement* b. Further Administrative Review of KWB Capacity Redistribution- February 2019* 4. Kern Groundwater Authority* a. Consider Approval of District’s Management Area Plan of KGA GSP - *Resolution Required* * b. Designate District Representative and Alternate to KGA Board of Directors* c. Consider Approval of Revised District/Landowner Non-District Lands Management Agreement

5. Delta Conveyance Project6. Release of Draft EIR for Operation of SWP

* 7. Consideration of Berrenda Mesa Banking Project - First Amendment to Joint Agreement* 8. Commendation for Dennis Mullins - *Resolution Required*

9. Designate District Representatives to Fill Various Vacancies10. Sites Reservoir

* a. First Amendment to the 2019 Reservoir Project Agreement

9. Reports1. Director’s Reports on Meetings Attended2. Kern County Water Agency3. Kern Water Bank4. Kern Groundwater Authority5. White Wolf Groundwater Sustainability Agency6. Kern River Watershed Coalition Authority7. Committee for Delta Reliability8. Cross Valley Canal9. Consultant’s Report

10. Unfinished and New Business1. Christmas Party - December 21, 2019

11. Public Comments

12. Adjournment

*These items may require Board action and may be moved to earlier in the meeting to ensure the maximum number of Directors are present.

Posted pursuant to Government Code § 54954.2(a) at least 72 hours prior to said meeting.By: Danyel Ruth December 6, 2019

Per Govt. Code § 54953.2 and § 54961, requests for a disability-related modification or accommodation, including auxiliary aids or services, in order to attend or participate inthis meeting should be made to the Administrative Assistant (phone 661-527-6068) in advance of the meeting to ensure availability of the requested service or accommodation.

**Per Govt. Code § 54954.3(a), A member of the public may comment on any matter on the agenda, before or during the Board's consideration of the matter (and in the case ofa closed session matter immediately before the Board goes into closed session) upon being recognized by the President and subject to any time constraints the President mayimpose from time to time.

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À W H E E L E R R I D G E - M A R I C O P A W A T E R S T O R A G E D I S T R I C T �

Agenda Item 3.1

MEMORANDUM

TO: Board of Directors

FROM: Sheridan Nicholas and Steve Torigiani

DATE: December 9, 2019

SUBJECT: Appointment of Division 9 Director

As per the Board direction from the November board meeting, District staff posted the attachedNotice of Vacancy throughout the District as required, as well as on the District website.

The District received one letter of interest, from Allen Lyda of Tejon Ranch Company (attached).

If the board were to appoint Mr. Lyda (or another individual) to the Board of Directors, therequired resolution is attached.

C:\Users\druth\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\DCCVCSZ2\WRM_Memo_2018_Appointment_of_Division_9_Director.wpd

BEFORE THE BOARD OF DIRECTORS WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT

RESOLUTION NO. 2019-XX IN THE MATTER OF:

APPOINTMENT TO FILL VACANCY IN THE OFFICE OF DIRECTOR OF DIVISION 9

WHEREAS, by the death of Dennis Mullins, a vacancy has been created in the office of Director of Division 9 of this District; and,

WHEREAS, the Board of Director desires to fill the vacancy by appointment, and to that end a Notice of Vacancy was duly posted as required by Government Code Section 1780 at three (3) conspicuous places within the District not less than fifteen (15) days prior to the adoption of this Resolution; and,

WHEREAS, the power and privilege of filing said vacancy by appointment now rests with the remaining members of the Board of Directors by virtue of said Section 1780(d)(1); and,

WHEREAS, ____________________ is a holder of title of land within the District or the designated representative of not a natural person that is a holder of title of land within the District, is knowledgeable about the affairs of the District, and is an appropriate person to fill said vacancy; and,

WHEREAS, Government Code Section 53051(b) requires that an amended Statement of Fact be filed with the Secretary of State and the Kern County Clerk within ten (10) days after any change such as that contemplated herein;

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors as follow:

1. That _____________ be and he hereby is appointed to the unexpired term of the office of Director of Division9 of this District, formerly held by Dennis Mullins, to hold said office until the next general District electionpursuant to Government Code section 1780(d)(2).

2. That the Secretary of the District prepare and transmit to the Secretary of State and the Kern County Clerk anamended Statement of Fact as required by Government Code section 53051(b) and notify the Kern Countyelections official of the appointment no later than 15 days after the appointment as required by Government Codesection 1780(d)(1).

3. That the District’s staff and attorneys are authorized to do all things necessary to carry out the appointment of____________________.

ALL OF THE FOREGOING being on motion of Director ______________, seconded by Director ___________, and adopted by the following vote, to wit:

AYES: NOES: ABSENT: ABSTAINING:

I HEREBY CERTIFY that the foregoing resolution is the resolution of said District as duly adopted by said Board of Directors on the 11th day of December, 2019WITNESS my hand and the seal of the Board of Directors this 11th day of December, 2019.

_____________________________ Jose Marin Secretary of the Board of Directors

Minutes of the Regular Board Meetingof the Board of Directors of the

Wheeler Ridge-Maricopa Water Storage DistrictConvened at 8:00 A.M., November 13, 2019

The regular meeting of the Board of Directors of the Wheeler Ridge-Maricopa Water Storage District was held atthe District Headquarters office, 12109 Highway 166 Bakersfield, CA 93313 on Wednesday November 13, 2019at the hour of 8:00 A.M. President Atkinson declared a quorum was present and called the meeting to order.

Directors Present. Atkinson, Blaine, Marin, Mettler, Reiter, Richardson, Valpredo.

Directors Absent. Fry & Division 9 Vacancy.

Others Present at 8:00 A.M. Engineer-Manager Sheridan Nicholas, District Consultant Bill Taube and Attorneyfor the District Steve Torigiani.

Others Present at 9:19 A.M. Lindsay Cederquist with Maricopa Orchards, George Cappello with GrimmwayFarms, Alex Shafer with Materra Farming Co., Angelica Martin with Tejon-Castac Water District, Kim Brownwith Wonderful, Cliff Woolley with Munger Farms, Allen Lyda with Tejon Ranch, Carlos Gonzalez with TerraBella Greenhouse, Water Resources Manager Wendy Jones, Staff Engineer Tom Suggs, Controller Jim Smith,Staff Accountant Kelly Mielke, Contract Administrator Eric McDaris and Administrative Assistant Danyel Ruth.

8:00 A.M. Closed Session. The Board convened in Closed Session to consider the following matters:

Conference with Legal Counsel Re: Existing Litigation (Govt. Code § 54956.9(a)):1. Central Delta Water Agency #1 et al v. DWR, et al Re: Monterey Plus EIR/Reverse Validation (DWR)2. Central Delta Water Agency #2 et al v. KCWA et al Re: KFE Transfer Reverse Validation KCWA)3. Center for Food Safety v. California Department of Water Resources Re: Kern Water Bank Revised EIR4. Golden Gate Salmon Association et al v. Ross (National Marine Fisheries Service) Re: California Water Fix Salmon

Biological Opinion5. Bay Institute et al v. Zinke (U.S. Fish and Wildlife Service) Re: California Water Fix Delta Smelt Biological Opinion6. California Department of Water Resources v. All Persons Interested, etc. “Complaint for Validation” Re: SWP

Contract Extension Amendment (Case 34-2018-00246183)7. California Department of Water Resources v. All Persons Interested, etc. “Complaint for Validation: Re: WaterFix

Bond Validation Action (JCCP 4942)8. Armenta v. WRMWSD (S. Dunn) (Case No. BCV-18-101089)9. Buena Vista Water Storage District v. Kern Water Bank Authority, et al. Re: KWBA Kern River EIR (Case No. BCV-

19-100122)Conference with Real Property Negotiator (Govt. Code § 54956.8):10. District’s Designated Representative: Engineer-Manager

1) Property: State Water Project Suppliesa. Negotiation With: California Department of Water Resources, Kern County Water Agency and its

Member Units, And State Water ContractorsConference with Legal Counsel Re: Potential Litigation (Govt. Code § 54956.9(d)(2) and/or (d)(4)):11. One Potential Suit

9:19 A.M. Open Session. The Board convened in open session with President Atkinson leading the Pledge ofAllegiance. Mr. Torigiani stated that no reportable action was taken in closed session.

Request to Add Item to Agenda. Mr. Nicholas requested the Board amend the regular Agenda by adding thefollowing item: 8.7 - Amendment/Change Order to EKI Task Order.

He further noted that the request from EKI was received after the Agenda had been posted. Upon motion fromDirector Marin, seconded by Director Valpredo and unanimously carried with no abstentions, the Board

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approved amending the Agenda to add item 8.7 - Amendment/Change Order to EKI Task Order.

Attorney’s Report. Mr. Torigiani discussed with the Board the Division 9 vacancy due to the recent passing ofDennis Mullins and the available options to fill the vacancy, including election or appointment pursuant toGovernment Code section 1780. Upon motion from Director Reiter and seconded by Director Valpredo andunanimously carried with no abstentions, the Board decided to fill the vacancy by appointment of a new Directorfor Division 9, and authorized staff to provide all notices of vacancy and perform all other tasks necessary andrequired per statute to appoint a new director at the December Board meeting.

Minutes. Upon motion from Director Reiter, seconded by Director Richardson and unanimously carried with noabstentions, The Minutes of the Regular Board Meeting of Directors... Convened October 9, 2019 were approvedand filed.

Filing of the Treasurer’s Report. Treasurer Mettler presented and reviewed the Treasurer’s Report for themonth of October 2019. Upon motion from Director Mettler, seconded by Director Blaine and unanimouslycarried with no abstentions, the Treasurer’s Report for the month of October 2019 was approved and filed.

Approve Payment of Accounts Payable. Treasurer Mettler presented and reviewed the Accounts Payable -October 2019, and the Reimbursements and Transfers - October 2019. Upon motion from Director Mettler,seconded by Director Valpredo and unanimously carried with no abstentions, the Accounts Payable - October2019 was approved and filed.

Budget, Water Rates, and Cash Forecast for 2020. Mr. Smith presented the 2020 Final Budget to the Board. Mr.Smith noted a few changes for the upcoming year’s budget, with the largest being inclusion of a generator for theoffice building. Mr. Nicholas reported on the October PG&E Public Safety Power Shutoff event that affected theDistrict, noting that if those events began to occur on a regular basis the District would need to pursue thegenerator, as the current generator only powers select areas of the District headquarters. Upon motion fromDirector Marin, seconded by Director Mettler and unanimously carried with no abstentions, the Budget, WaterRates, and Cash Forecast for 2020 was approved.

Delinquent Accounts Report for October 2019. Mr. Smith reported there were no delinquent accounts andDistrict had received all installment payments.

Budget Expenditures Report for September 2019. Ms. Mielke reviewed the Budget Expenditure Report andreported that overall we are within budget with the exception of a few things that should balance out by year-end.

2019 Audit Engagement Letter. Mr. Smith reviewed his November 13, 2019 memorandum to the Board entitled2019 Audit Engagement Letter & Governance Letter and the attached October 30, 2019 letter to the Board fromBHK. Upon motion from Director Mettler, seconded by Director Valpredo and unanimously carried with noabstentions, the Board approved engaging BHK to perform the District’s 2019 audit as per the terms described inthe October 30, 2019 letter from BHK.

Capital Replacement Study and Reserve Analysis. Mr. Nicholas gave a status update on the CapitalReplacement Study and Reserve Analysis, and recommended a Budget/Finance Committee meeting be held in thenear future to discuss in detail.

President’s Report. President Atkinson took a moment to share some thought regarding the unexpected passingof Director Mullins, and noted the contributions he made to the District and to the Kern Groundwater Authoritywhere he served as chairman. Other directors echoed the sentiments. Mr. Nicholas noted the November 8, 2019Bakersfield Californian article regarding Director Mullins is included in the Board Packet.

Engineer-Manager’s Report. Mr. Nicholas reviewed a number of items included within the Engineer-Manager’s

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portion of the Report. He additionally noted the following:- the District had received a President’s Special Recognition Award for achieving a low ratio of “Paid

Claims and Case Reserves” to “Deposit Premiums” in the Workers” Compensation Program for theperiod July 1, 2015 - June 30, 2018;

- the District had completed valve replacements on the 8G lateral on an accelerated schedule to assistWater Users, noting that comparative work performed by a contractor would have most likely exceeded acost of $250,000; and

- District Engineer Tom Suggs has provided a chart within his portion of the E-M report detailing the netcosts or saving related to the District’s solar project.

2019 Water Supply/Demand Estimate. Water Resource Manager Wendy Jones reviewed the 2019 WaterSupply/Demand Estimate with the Board.

Approval of Form of Second Priority Sub-Account Program Agreement. Mrs. Jones reviewed her November 6,2019 memorandum to the Board entitled Second Priority Sub-Account Program Agreement. Director Reiterasked that the Board have a chance to review the Agreement prior to approval, and the item was tabled until theregular December Board meeting.

Consider Request to Adjust Estimated Second Priority Banking Accounts - Activity Feb 2019. Prior todiscussion on this item, Mr. Torigiani reviewed briefly explained why, based on available information, he did notbelieve any of the directors has a disqualifying financial interest pursuant to tthe Political Reform Act thatprecluded their participation in this item.

Mrs. Jones reviewed her November 13, 2019 memorandum to the Board entitled Consider request to adjustestimated Second Priority Bank Accounts Activity February 2019 - Chronological Facts. A lengthy discussionensued between Board members with additional public comments from Kim Brown of Wonderful and AngelicaMartin of Tejon Ranch. Upon motion of Director Reiter, seconded by Director Marin, and carried by a 6-1 vote(Director Mettler voting nay), the Board directed staff to prepare and present an additional allocation optionregarding the second priority banking (as discussed in the memorandum) for review at the December Boardmeeting.

California Farm Water Coalition 25th Anniversary Banners. Mr. Nicholas reviewed his November 7, 2019memorandum to the Board entitled California Farm Water Coalition 25th Anniversary Banners. Upon motionfrom Director Mettler, seconded by Director Marin and unanimously carried with no abstentions the Boardauthorized the Engineer-Manager to update and replace the existing District banner, and install an additionalbanner in a suitable location.

Delta Conveyance Project. Mr. Nicholas gave an update to the Board and stated that Mr. Kunde had addedadditional information in his monthly report.

Release of New Biological Opinions. Mr. Nicholas reviewed his November 7, 2019 memorandum to the Boardentitled Release of New Biological Opinions, plus the additional attached handouts. He further reviewed some ofthe significant changes included within the new Biological Opinions.

10:58 A.M. Director Richardson temporarily left the meeting.

Amendment/Change Order. Mr. Nicholas reviewed his November 7, 2019 memorandum to the Board entitledAmendment/Change Order, as well as the and attachment from EKI. Upon motion from Director Mettler,seconded by Director Marin and unanimously carried with no abstentions, the Board authorized the Engineer-Manager to execute the attached Amendment/Change Order related to Task Order to Develop a GroundwaterSustainability Plan Chapter and Support Completion of the District’s Management Area Plan through February2020 at a total cost of $40,000.

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10:59 A.M. Director Richardson returned to the meeting.

Director’s Meeting Attended. President Atkinson reported on the Water Association of Kern County AnnualMeeting where former District counsel Ernest Conant received two awards.

Kern County Water Agency. Nothing to report.

Kern Water Bank. Mr. Taube reported he was meeting with the KCWA to discuss issues related to Basin 9.

Kern Groundwater Authority. Mr. Nicholas reported on a number of items related to KGA: - The 2020 budget was approved, with a total amount of nearly $2 million, the District share being

approximately $125,000.- Basin groundwater balance discussions have neared conclusion, with the District’s balance unchanged

from its initial Plan.- The Basin’s annual report is due April 1, 2020. A considerable amount of data gathering needs to occur

for this.- KGA Schedule - umbrella document comments due November 29; District Management Area Plan Board

Approval December 11; MAP submission to KGA December 13; KGA Board approval of individualManagement Plans December 18. KGA approval of GSP January 22; and DWR Submission end ofJanuary.

- with passing of Director Mullins, the District would need to select additional representation on the KGABoard. Director Blaine has been the alternate District representative.

White Wolf Groundwater Sustainability Agency. Nothing to report.

Kern River Watershed Coalition Authority. Michael Blaine reported that bills were due Friday and DennisJohnston from Arvin-Edison WSD was appointed the new Treasurer.

Committee for Delta Reliability. Mr. Nicholas noted there were several handouts in the packet for review.

Cross Valley Canal. Mr. Taube reported the meeting had been cancelled and there was nothing to report at thistime.

Consultant’s Report. Mr. Taube reported that after December he would no longer be consulting for the District,and he would be stepping down from a number of positions, including representing the District on the KWBBoard of Directors. He would be doing some work in relation to the Basin 9 issue. He further noted that GeneLundquist was voted in as the new WAKC President.

Unfinished and New Business. Administrative Assistant Danyel Ruth reported that the Christmas Party would beheld on December 21st and invitations were enclosed in their checks.

Public Comments. None.

Adjournment. With no further business the meeting was adjourned at 11:24 a.m.

Respectfully submitted:

[Seal] ______________________________Jose Marin, Secretary of the Board

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List of Abbreviations:

ACWA Association of California Water AgenciesADM SSC Administrative Service Charge, for basic administrative costs, non-project in nature, benefitting both SWSA and groundwater service

areaAECA Agricultural Energy Consumers AssociationAgency Kern County Water AgencyAWMP Agricultural Water Management PlanBDCP Bay Delta Conservation PlanBDS Bond Debt ServiceCAW Contract Amount of Water totaling 200,818 acre-feet between the District & Water UsersCEQA California Environmental Quality ActCFWC California Farm Water CoalitionCOBRA Consolidated Omnibus Budget Reconciliation ActCVC Cross Valley CanalCVP Central Valley Project (operated by the U.S. Bureau of Reclamation)CWF California WaterFix delta conveyance program (previously DHCCP)DFW California Department of Fish and WildlifeDHCCP Delta Habitat Conservation and Conveyance Program - the conveyance element of the BDCP - renamed the CaliforniaDistrict Wheeler Ridge-Maricopa Water Storage DistrictDOG California Division of Oil & GasDWR California Department of Water ResourcesDYTP Dry Year Transfer ProgramEIR Environmental Impact ReportFAA Final Accounting AdjustmentFO Fixed Obligation water rateFWS U.S. Fish and Wildlife ServiceGEN SSC General Service charge, for recovery of Bond Debt for general purposes in the DistrictGSA Groundwater Sustainability AgencyGSP Groundwater Sustainability PlanILRP Irrigated Lands Regulatory ProgramIRWMP Integrated Regional Water Management PlanJPIA Joint Powers Insurance AuthorityKCWA Kern County Water Agency or AgencyKFMC Kern Fan Monitoring CommitteeKGA Kern Groundwater AuthorityKRGSA Kern River Groundwater Sustainability AgencyKRWCA Kern River Watershed Coalition AuthorityKWB Kern Water BankKWBA Kern Water Bank AuthorityMOU Memorandum of UnderstandingMWD Metropolitan Water DistrictNoD North of the DeltaNonC Non-Contract ChargesOMR Operations, Maintenance and Repair, not to be confused with OMR of Old Middle RiversOMR Old and Middle Rivers in the Sacramento-San Joaquin DeltaOSHA Occupational Safety and Health AdministrationPEF Pastoria Energy FacilityPoE Probability of ExceedancePROJ SSC Project Service Charge, for project costs related to, but not specific to a particular systemRWQCB Regional Water Quality Control BoardSGMA Sustainable Groundwater Management ActSLR San Luis ReservoirSoD South of the DeltaSSC Special Service Charge, consists of ADM SSC, GEN SSC and PRO SSCSSJVWQC Southern San Joaquin Valley Water Quality CoalitionSVWRA South Valley Water Resources AuthoritySWC State Water ContractorsSWP State Water Project (operated by DWR)SWRCB State Water Resources Control BoardSWSA Surface Water Service Area or contracted acreagesWAC Water Availability Charge, consists of BDS, OMR & FOWater User A landowner holding a Water Service Contract with the DistrictWD Water DistrictWRMWSD Wheeler Ridge-Maricopa Water Storage DistrictWS5 Westside 5 Water Districts - Belridge, Berrenda Mesa, Dudley Ridge, Lost Hills & Wheeler RidgeWSC Water Service ContractWSD Water Storage DistrictWUC Water Use Charge, consists of State Pumping/Variable and District Pumping/Variable

WWGSA White Wolf Groundwater Sustainability Agency

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5.1

12/11/2019 Brd PktFUNDS ON DEPOSIT: GENERAL FUND

BALANCE AS OF: 10/31/2019 51,029,341.35 PLUS CASH RECEIVED (SEE BELOW) FOR: Nov-19 687,674.97 INTER FUND TRANSFERS DURING MONTH FOR: Nov-19 0.00 LESS CASH EXPENDED DURING MONTH FOR: Nov-19 (4,264,416.82) (oct pr ap, cdr, mnl, fees - nov pr burdens, ee net, taxes, inv)

LAIF INTEREST DURING MONTH FOR: Nov-19 0.00 INTEREST IN TRANSIT: Nov-19 0.00 DEPOSIT IN TRANSIT: ppe 11/02/2019 Oct-19 286,000.00

FUNDS ON DEPOSIT AT END OF MONTH: 47,738,599.50

THE ABOVE FUNDS ARE ON DEPOSIT AS FOLLOWS: WELLS FARGO BANK NA - CASH BALANCE 217,447.49 KCT-POOLED INVESTMENTS-CASH BALANCE 47,519,288.76 LAIF-POOLED INVESTMENTS-CASH BALANCE 1,863.25

47,738,599.50

INTEREST APPORTIONMENT PERCENTAGE (ANNUALIZED)QUARTER ENDING SEP 30, 2019 --------- 2.029%QUARTER ENDING JUN 30, 2019 --------- 2.030%QUARTER ENDING MAR 31, 2019 --------- 2.122%QUARTER ENDING DEC 31,2018 --------- 1.916% ALL FUNDS ARE PLACED IN ACCORDANCE WITH THE DISTRICT'S INVESTMENTPOLICY AND GUIDELINES. SUFFICIENT CASH FLOW EXISTS TO MEET BUDGETEDOBLIGATIONS FOR THE NEXT SIX MONTHS.

CASH RECEIVED (KERN COUNTY TREASURER/WELLS FARGO) DURING MONTH AS FOLLOWS:

Invoice 2019-75-76, 79, 92-93 - guest-wakc annual meting 14170 250,453.95Cobra Medical Insurance Premium - stephen dunn 14179 960.30Invoice CDR 2019 - kern tulare, semitropic, bv, id4, tej, wk 23307 349,324.00Special Service Charges Administrative-kc auditor/controller 43043 4,307.99Special Service Charges General-kc auditor/controller 43044 310.89Tower Lease - american tower 46200 772.99Interest 3rd Quarter 2nd Apportionment - kc auditor controller 47850 81,447.89Reimbursement for Invoice 01659 - county of kern 60947 96.96

Cash Receipts Summary 13150 687,674.97 OPERATING RESERVE FUND BALANCE: 15,480,231.00

WHEELER RIDGE - MARICOPA WATER STORAGE DISTRICTTREASURER'S REPORT FOR THE MONTH OF NOVEMBER 2019

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5.1

12/11/2019 Board Packet

Audited 2019 AdjustedINTERNALLY CONSTRAINED RESERVES 12/31/2018 Adjustments 12/31/2019

OPERATING RESERVE FUND 15,480,231 15,480,231

EQUIPMENT REPLACEMENT RESERVE FUND 2,342,804 (180,526) (4) 2,100,700(61,578) (5)

GROUND WATER REPLENISHMENT RESERVE FUND 9,301,008 9,301,008

CONTINGENCY RESERVE FUND 6,494,963 154,223 (1) 6,410,395(41,703) (2)

(197,088) (3)

WATER BANKING CAPITAL RESERVE FUND 2,562,813 2,562,813

KWBA EQUIPMENT REPLACEMENT RESERVE FUND 216,476 216,476

1998 PREPAID O&M RESERVE 0 0

TOTAL RESERVE FUNDS INTERNALLY CONSTRAINED 36,398,295 (326,672) 36,071,623

THIS AMOUNT IS SHOWN AS AN UNCONSTRAINED RESERVE. 33,036,949 326,672 33,363,621THIS IS MISLEADING AS THE BOARD HAS NOT DESIGNATED SUCH A RESERVE, AND IT IS NOT A CASH ASSET (COMPARE THE$69.4 MILLION OF TOTAL RESERVES TO THE $42.7 MILLION OFCASH EQUIVALENTS ON PAGE 9 OF THE 2018 AUDIT.

UNRESTRICTED NET ASSETS 69,435,244 0 69,435,244

(1) Refund of Sites Reservoir Funding for Phase 1(2) California Water Fix - Legal Expenses(3) Committee for Delta Reliability - Membership Assessment 2019(4) Peterbilt Dump Truck - purchased in 2019 and budgeted as a Capital Expenditure in 2020

Approved and authorized by the Board of Directors on 2/13/2019(5) Ford F-450 Utility Truck - purchased in 2019 and budgeted as a Capital Expenditure in 2020

Approved and authorized by the Board of Directors on 4/10/2019

WHEELER RIDGE - MARICOPA WATER STORAGE DISTRICT AUDITED RESERVE FUND BALANCES AS OF DECEMBER 31, 2018 PLUS ESTIMATED ADJUSTMENTS

WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICTACCOUNTS PAYABLE

NOVEMBER 2019

5.2ID NAME DATE INVOICE # AMOUNT DESCRIPTION 5,000+

A85 JONATHAN REITER 12/3/2019 12032019 600.00 REGISTRATION - 2019 ACWA CONF.B120 JOHN BOOKOUT 11/30/2019 11302019 25.00 MONITOR WATER - NOV. 2019B125 ROBERT CLAFFY 11/30/2019 11302019 25.00 NOV. WATER TREATMENTB175 DOUGLAS HARE 11/30/2019 11302019 156.60 TRANSPORTATIONB176 STEVEN LEWIS 11/30/2019 11302019 17.40 TRANSPORTATIONB180 WENDY JONES 11/20/2019 11202019 13.75 FOOD - WORKSHOP IN SACRAMENTOB180 WENDY JONES 12/5/2019 12052019 64.01 MEALS - 2019 ACWA CONFERENCEB211 ADRIAN MARTINEZ 11/30/2019 11302019 382.80 TRANSPORTATIONB214 KELLY MIELKE 11/30/2019 11302019 295.80 TRANSPORTATIONB214 KELLY MIELKE 11/20/2019 11202019 29.46 MILEAGE - SVWRA MEETINGB225 MICHAEL PILATTI 11/30/2019 11302019 25.00 SAFETY MEETING - NOV. 2019B259 JUAN RAMIREZ 11/30/2019 11302019 17.40 TRANSPORTATION

C0930 661 COMMUNICATIONS 11/22/2019 1465 898.58 RADIO/INSTALL FEE #382C0940 A-1 SPRING & SUPPLY 5/14/2019 57940 509.37 REPLACE SPRINGS/BOLT #377C1116 APEX INDUSTRIAL SUPPLY INC. 11/14/2019 3076 1,941.65 GASKETS/GRAPHITE PACKINGC1116 APEX INDUSTRIAL SUPPLY INC. 11/12/2019 3074 305.79 WHITE/PINK MARKING PAINTC1116 APEX INDUSTRIAL SUPPLY INC. 11/21/2019 3085 101.89 25 FT - HYPERTHERM CABLEC1116 APEX INDUSTRIAL SUPPLY INC. 11/6/2019 3064 445.67 FILTERS/RESPIRATORS/GASKETC1116 APEX INDUSTRIAL SUPPLY INC. 11/8/2019 3066 795.77 CUTTING TORCHES/CLAMP/GLOVESC1120 APPLIED INDUSTRIAL TECHNOLOGIE 11/13/2019 7017639750 28.29 2 - BEARINGS WRM 7C1192 AVADINE 12/1/2019 106732 1,000.00 LATIS MAINTENANCE/SUPPORTC1210 B.S.& E. CO., INC. 11/15/2019 11152019 384.55 TRAILER RENTAL/ROTOMIXXC1247 BAKERSFIELD ICE 11/30/2019 I191114175 268.79 RENTAL/ICEC1277 B & R SUPPLY, INC. 11/20/2019 1900939396 66.69 2 - COMBO WRENCHES #377C1295 THOMSON REUTERS - WEST 11/4/2019 841315908 319.50 SUBSCRIPTION - SAFETY ORDERSC1363 BONANDER BUICK-GMC 11/27/2019 46896 15,000.00 TRAILER W/ ROLL-OFF BIN #796 15,000.00 C1390 JIM BURKE FORD 11/25/2019 196139 47,278.41 2019 FORD F450 #384C1390 JIM BURKE FORD 12/3/2019 1360485 538.60 FLOOR MATS #381/382/384C1390 JIM BURKE FORD 11/6/2019 1356751 49.33 BOLTS 47,866.34 C1431 CAL LOWBED SERVICE 10/29/2019 20157128 312.50 MOVE #390 TO 8 LATERALC1446 CALIFORNIA FARM WATER COALITIO 11/8/2019 11082019 12,450.00 MEMBERSHIP RENEWAL 2020 12,450.00 C1451 CALIFORNIA INDUSTRIAL RUBBER 11/6/2019 B-015852 150.15 4 - BLACK UHMWC1501 CEMEX 11/12/2019 9440842922 470.12 CONCRETEC1520 CLEROU TIRE COMPANY 11/15/2019 T81626 225.37 1 TIRE/BALANCE #033C1540 COLES ENVIRONMENTAL 11/27/2019 24002 389.00 REMOVE USED OIL #389C1599 COVERALL NORTH AMERICA, INC. 11/1/2019 1545145462 572.00 WEEKLY CLEANING SERVICEC1599 COVERALL NORTH AMERICA, INC. 11/15/2019 1545145639 54.40 WEEKLY CLEANING SERVICEC1625 DANIELS TIRE SERVICE 11/8/2019 240123651 1,414.33 7 TIRES - STOCKC1625 DANIELS TIRE SERVICE 11/18/2019 240123840 659.24 3 TIRES - STOCKC1633 DAVID JANES COMPANY 11/5/2019 0351534-IN 1,446.07 SUPPLIES-8 G LAT. 36" VALVEC1689 E.M. THARP INC. 12/5/2019 B-667833 356,052.06 2 PETERBILT DUMP TRUCKSC1689 E.M. THARP INC. 12/4/2019 B-923497 29.23 4 - HUB CAPS #376 356,081.29 C1692 EKI ENVIRONMENT & WATER, INC. 11/14/2019 B70103-01-17 8,633.42 CONSULTING/SGMA 8,633.42 C1695 ELECTRIC MOTOR WORKS INC 11/8/2019 103030 2,356.78 LABOR/PARTS- PC 1 MOTORC1695 ELECTRIC MOTOR WORKS INC 11/11/2019 103038 880.92 MOTOR REPAIR - PC-1 SCREENC1695 ELECTRIC MOTOR WORKS INC 11/27/2019 103154 5,159.40 LABOR/PARTS - WRM 3 MOTOR 8,397.10 C1755 FASTENAL 10/31/2019 CABA229895 303.08 VARIOUS VENDING SUPPLIESC1755 FASTENAL 11/26/2019 CABA230210 769.70 BOLT KITS/MULTI-PURPOSE GREASEC1765 FAST UNDERCAR 11/21/2019 08EK7689 339.00 2 DEKA BATTERIES/NITRILE GLOVEC1765 FAST UNDERCAR 11/21/2019 08EK7698 (14.05) RETURN - NITRILE GLOVESC1775 FERGUSON ENTERPRISES, INC. 11/12/2019 1508047 814.58 2 - 10" HYMAX COUPLERSC1775 FERGUSON ENTERPRISES, INC. 11/13/2019 1506922 595.85 VARIOUS LIME RAIN COATSC1775 FERGUSON ENTERPRISES, INC. 11/1/2019 1503786 3,021.53 2 - 36" GASKETS - 8 LATERALC1775 FERGUSON ENTERPRISES, INC. 11/1/2019 1502490-1 194.37 22 - BLACK STEEL NIPPLESC1775 FERGUSON ENTERPRISES, INC. 11/27/2019 1507572 1,082.50 2 - BAKER COUPLINGSC1775 FERGUSON ENTERPRISES, INC. 11/19/2019 1510322 2,065.27 2 - 8" GATE VALVESC1775 FERGUSON ENTERPRISES, INC. 11/26/2019 1511284 981.17 4 - 8" COUPLERSC1775 FERGUSON ENTERPRISES, INC. 11/27/2019 1508042 2,472.35 COUPLERS/GASKETSC1775 FERGUSON ENTERPRISES, INC. 11/20/2019 1464016-01 5,528.48 1 - 12" CHECK VALVEC1775 FERGUSON ENTERPRISES, INC. 10/24/2019 1502490 1,443.60 VARIOUS STEEL BLACK NIPPLES 18,199.70 C1815 FLYERS ENERGY, LLC 11/27/2019 19-025539 21,409.92 FUEL 21,409.92 C1960 GRAINGER 11/13/2019 9354454705 634.84 BATTERIES/SMALL TOOLSC1960 GRAINGER 11/13/2019 8355228751 128.40 PIPE WRENCHES/SPLINTER REMOVERC1960 GRAINGER 12/3/2019 9373366971 702.01 HOSE REEL #384/BATTERIESC1960 GRAINGER 11/8/2019 9350917762 308.66 VARIOUS SMALL TOOLS #378C1969 GRAPEVINE MSP 11/15/2019 20766 3,168.50 IT SERVICE/BACKUP/SECURITYC1969 GRAPEVINE MSP 12/5/2019 20864 1,514.00 MITEL LICENSE-VOICEMAIL SERVERC1980 GRAYBAR ELECTRIC CO, INC 11/22/2019 9313382148 896.73 CONNECTORS/VINYL TAPEC1980 GRAYBAR ELECTRIC CO, INC 11/22/2019 9313382147 238.32 SPIRAL WRAPPING/CODING TAPEC2017 H & S BODY WORKS & TOWING 11/26/2019 101075 180.00 TOW #372 TO FORDC2049 HERC RENTALS INC. 11/21/2019 30984099-003 2,737.76 TRUCK RENTALC2049 HERC RENTALS INC. 11/27/2019 30984099-004 1,094.17 TRUCK RENTALC2106 IGS SOLAR 11/12/2019 193160003353011 26,939.77 SOLAR SUPPLY CHARGE 26,939.77 C2108 IMPERIAL SUPPLIES LLC 11/15/2019 I000XT1213 834.51 VARIOUS NUTS/BOLTS/WASHERSC2114 INSTRUMENT CONTROL SERVICES 11/12/2019 WRW10219R2 622.44 GATE LEVEL TRANSDUCERC2118 INNOVATIVE ENGINEERING SYSTEMS 11/21/2019 27574 3,503.09 ARC FLASH STUDY - WRM-4

Page 3 of 13

WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICTACCOUNTS PAYABLE

NOVEMBER 2019

ID NAME DATE INVOICE # AMOUNT DESCRIPTION 5,000+C2125 INTERNATIONAL WATER SCREENS 11/8/2019 G-1004 2,239.38 3 SUCTION BASKETS-WTR SCREENSC2150 JERRY & KEITH'S INC 11/22/2019 01 324280 96.12 HUB CAPS/MUD FLAPS/NUTS #376C2168 JORGENSEN & CO 11/26/2019 5846759 173.70 02 SENSOR/CALIBRATIONC2250 KERN COUNTY WATER AGENCY 12/3/2019 36027 35,591.84 CVC 1ST QTR 2020 35,591.84 C2268 KERN GROUNDWATER AUTHORITY 11/25/2019 2019-114 14,583.34 CASH CALL 2 GSP SUPPORT 14,583.34 C2330 KNIGHTS PUMPING SERVICE 11/8/2019 28347 85.79 PORTABLE TOILET SERVICEC2330 KNIGHTS PUMPING SERVICE 10/25/2019 26809 171.58 PORTABLE TOILET/WHEEL SERVICEC2330 KNIGHTS PUMPING SERVICE 11/22/2019 30109 171.58 PORTABLE TOILET/WHEEL SERVICEC2330 KNIGHTS PUMPING SERVICE 11/29/2019 30866 85.79 PORTABLE TOILET/SERVICEC2371 LAWSON PRODUCTS 11/8/2019 9307159440 298.71 DRILL BITS/SCREWS/FITTINGSC2511 MULTIPLIER 12/4/2019 12042019 250.00 MAVENS NOTEBOOKC2552 NAPA AUTO PARTS-GENUINE PARTS 11/20/2019 592163 18.98 WIPER BLADES #127C2552 NAPA AUTO PARTS-GENUINE PARTS 12/4/2019 592984 96.09 AIR FILTERS/DE-ICER/BUGWASHC2552 NAPA AUTO PARTS-GENUINE PARTS 12/4/2019 592993 42.69 20 WIPER BLADESC2635 OCCU-MED 10/31/2019 1119752OA 241.50 PRE-EMPLOYMENT PHYSICALC2678 P.A.S. ASSOCIATES 11/16/2019 40004 654.75 HR HOTLINE 12/18/19 - 3/17/20C2690 P G & E #1 11/30/2019 11302019 224,020.11 NOVEMBER POWERC2691 P G & E #2 11/30/2019 11302019 113,480.76 NOVEMBER POWERC2692 P G & E #3 11/30/2019 11302019 2,820.31 NOVEMBER POWERC2693 P G & E #4 11/30/2019 11302019 470.47 NOVEMBER POWERC2694 P G & E #5 11/30/2019 11302019 1,535.32 NOVEMBER POWER 342,326.97 C2707 PARKHOUSE TIRES, INC 12/4/2019 4030133423 92.39 MOUNT TIRES/BRASS VALVES #376C2707 PARKHOUSE TIRES, INC 11/27/2019 4030133250 1,588.75 4 TIRES #376C2790 POWERSTRIDE BATTERY 12/4/2019 B368413 921.52 BATTERIES/MICRO-STARTC2800 PRAXAIR 11/22/2019 93258851 876.58 DEMURRAGEC2808 PRICE DISPOSAL INC 11/11/2019 559412 780.57 40 YD ROLL OFFC2812 PROVOST & PRITCHARD 11/12/2019 75878 1,061.66 WS5 WATER SUPPLYC3020 SAN JOAQUIN SAFETY SHOES 11/18/2019 I100-1207063 143.97 BOOTS - JOSEPHC3082 SPARKLE UNIFORM & LINEN SERVIC 11/14/2019 0767450 551.05 UNIFORMSC3082 SPARKLE UNIFORM & LINEN SERVIC 11/7/2019 0766546 551.05 UNIFORMSC3082 SPARKLE UNIFORM & LINEN SERVIC 11/21/2019 0768347 551.05 UNIFORMSC3082 SPARKLE UNIFORM & LINEN SERVIC 11/28/2019 0769152 551.05 UNIFORMSC3082 SPARKLE UNIFORM & LINEN SERVIC 12/5/2019 0770132 551.05 UNIFORMSC3100 SMART & FINAL 11/13/2019 056354 34.35 SUPPLIESC3100 SMART & FINAL 12/4/2019 040187 19.94 SUPPLIESC3100 SMART & FINAL 11/20/2019 058412 100.53 SUPPLIESC3105 SMITH'S BAKERIES 11/13/2019 263081 70.32 BOARD MEETINGC3120 SNIDERS 11/5/2019 S 69123 801.05 4 - LOCK SETSC3189 SSD ALARM 11/15/2019 5468553 120.00 ALARM MONITORING SERVICESC3200 STINSON'S 11/19/2019 898904-0 661.68 SUPPLIESC3200 STINSON'S 11/26/2019 900401-0 299.43 SUPPLIESC3200 STINSON'S 12/5/2019 901832-0 447.36 SUPPLIESC3200 STINSON'S 11/21/2019 C 898904-0 (137.54) SUPPLIESC3267 THE HOME DEPOT PRO 5/20/2019 493237184 352.61 PAPER TOWELSC3267 THE HOME DEPOT PRO 11/13/2019 521985200 460.97 PAPER TOWELS/TRASH BAGSC3282 TIFCO INDUSTRIES, INC 11/13/2019 71507403 371.84 FIRST AID KIT/SPILL KITC3356 USA BLUEBOOK 11/12/2019 65066 110.56 VALVE - WTR TREATMENTC3375 UNIFORM & ACCESSORIES WAREHO 11/26/2019 749631 557.68 LIGHTBARS #384/#136C3417 UNWIRED BROADBAND, INC. 11/16/2019 INV00750873 899.99 WIRELESS SERVICEC3470 VULCAN MATERIALS 11/8/2019 72403775 451.79 23.46 TONS ROCK - 8G LATERALC3470 VULCAN MATERIALS 11/6/2019 72400670 450.86 23.41 TONS ROCK - 5P LATERALC3470 VULCAN MATERIALS 11/22/2019 72420202 427.36 22.16 TONS ROCK - 9G10 & 9G9C3470 VULCAN MATERIALS 11/18/2019 72414528 180.67 11.25 TONS - BASE ROCKC3520 WATER-WAYS IRRIGATION ENGINEE 11/11/2019 177458 143.50 10 - 1" AIR VENTSC3588 WESTERN EXTERMINATOR COMPAN 10/31/2019 7568591 165.00 PEST CONTROLC3630 WIENHOFF DRUG TESTING INC 11/15/2019 87062 675.00 MEMBERSHIP FEEC3670 YOUNG WOOLDRIDGE 11/30/2019 11302019 9,289.24 LEGAL SERVICES 9,289.24

D10261 STEVEN M. GODDARD, INC. 12/9/2019 12092019 8,380.99 REFUND 2019 CREDIT BALANCE 8,380.99

SUBTOTAL 978,035.32

11,523.51 MANUAL CHECKS ATTACHED280.51 WELLS FARGO ANALYSIS FEES

VOUCHER TOTAL 989,839.34

Page 4 of 13

WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICTMANUAL CHECKS NOVEMBER 2019

5.2ID NAME DATE INVOICE # AMOUNT DESCRIPTION 5,000+

B121 CHRIS BROOKS 11/11/2019 11112019 46.00 HAZMAT CERTB166 CHRIS GILKISON 11/25/2019 11252019 46.00 HAZMAT CERTB190 JON KELLEY 11/26/2019 11262019 175.00 BOOTS - KELLEY

C1187 AT&T 11/8/2019 11082019 297.18 ANALOG LINESC1187 AT&T 11/8/2019 11082019-1 172.30 FIRE ALARM LINESC1490 WEX BANK (CHEVRON) 11/6/2019 62208852 75.00 FUEL-LATE FEEC1607 KERN COUNTY CLERK 11/12/2019 11122019 50.00 NOE 2019-20 WTR XFER LRTID - WRMC1607 KERN COUNTY CLERK 11/12/2019 11122019-1 50.00 NOE 2019-20 WTR XFER PID - WRMC2412 LOWE'S BUSINESS ACCOUNT 11/2/2019 11022019 1,744.68 SUPPLIESC3283 TIAA COMMERCIAL FINANCE, INC 11/11/2019 6695235 539.45 LEASE OF 2 KYOCERA COPIERSC3307 TULARE COUNTY CLERK RECORD 11/12/2019 11122019 58.00 NOE 2019-20 WTR XFER LRTID - WRMC3307 TULARE COUNTY CLERK RECORD 11/12/2019 11122019-1 58.00 NOE 2019-20 WTR XFER PID - WRMC3461 VERIZON WIRELESS 11/9/2019 9841763243 198.67 CELL PHONEC3461 VERIZON WIRELESS 11/9/2019 9841763244 297.56 IPAD DATAC3549 WELLS FARGO - LOVELESS 11/3/2019 11032019 60.51 SELF PRIMING TRANSFER PUMPC3552 WELLS FARGO - OFFICE 11/3/2019 11032019 1,917.26 LODGING/MEALS-CALPERSC3555 WELLS FARGO - SUGGS 11/3/2019 11032019 343.90 LODGING-ACWA FALL CONFERENCEC3558 WELLS FARGO - OFFICE #2 11/3/2019 11032019 3,790.67 WOOD/STUDS & NUTS/FOODC3559 WELLS FARGO - NICHOLAS 11/3/2019 11032019 258.43 MEALS/LANTERNS/SUBSCRIPTIONC3562 WELLS FARGO - SMITH 11/3/2019 11032019 1,344.90 CALCPA WEBCAST/2 COMP. MONITORS 7,715.67

TOTAL 11,523.51

Page 5 of 13

5.2

NAME INVOICE NUMBER DESCRIPTION AMOUNT

TRANSFERS AUTHORIZED BY WRMWSD BOARD

NOVEMBER 13, 2019 BOARD MEETING NOVEMBER VOUCHER 48,060.66

VOUCHER TOTAL REQUESTED 48,060.66

EXPENDITURES AUTHORIZED BY COMMITTEE AND PAID BY WRMWSD MANUAL CHECK

Center for CA Water Resources 240 Murphy/Hamilton - July to Sept 2019 16,173.45Cramer Fish Sciences SIN004211 SAFE - Sept 2019 2,408.75Cramer Fish Sciences SIN004214 Science Program - Sept 2019 411.25Cramer Fish Sciences SIN004215 Silversides Predation - Sept 2019 2,427.00Nossaman 500872 ESA/Water Quality Counseling - Sept 2019 18,845.66Nossaman 500874 Reconsultation - Sept 2019 2,128.50West Coast Advisors 12576 Consulting - Nov 2019 5,000.00West Coast Advisors 12570 Expenses - Sept 2019 666.05

TOTAL PAID 48,060.66

INVOICES AWAITING COMMITTEE APPROVAL INVOICES APPROVED BY WRMWSD BOARD @ DECEMBER 11, 2019 BOARD MEETING (VOUCHER)

Center for CA Water Resources 241 Murphy/Hamilton - July to Oct 2019 28,866.80Cramer Fish Sciences SIN004290 Predation - Oct 2019 597.50Cramer Fish Sciences SIN004300 Science Program - Oct 2019 3,290.00Cramer Fish Sciences SIN004302 Silversides Predation - Oct 2019 4,678.00Cramer Fish Sciences SIN004366 Predation - Nov 2019 1,527.50Cramer Fish Sciences SIN004367 SAFE - Nov 2019 411.25Cramer Fish Sciences SIN004373 Science Program - Nov 2019 2,121.00Cramer Fish Sciences SIN004375 Silversides Predation - Nov 2019 2,260.00Nossaman 501804 ESA/Water Quality Counseling - Oct 2019 40,260.21Nossaman 501805 Reconsultation - Oct 2019 2,722.50West Coast Advisors 12600 Consulting - Dec 2019 5,000.00West Coast Advisors 12595 Expenses - Oct 2019 895.16

VOUCHER TOTAL REQUEST 92,629.92

WHEELER RIDGE-MARICOPA WSDFISCAL AGENT FOR COMMITTEE FOR DELTA RELIABILITY

CUSTODIAL FUNDS-REPORT OF EXPENDITURES AND TRANSFERSNOVEMBER 2019 FOR THE DECEMBER 11, 2019 BOARD MEETING

Page 6 of 13

5.2

Check Date Payee Amount DescriptionBALANCE AS OF 10/31/2019 7,000.00

REPLENISH 0.00

7,000.00

Total Checks Issued 0.00

Ending Balance 7,000.00Balance Limit 7,000.00

Replenish Amount 0.00

Wheeler Ridge-Maricopa Water Storage DistrictRevolving Account Check Listing

November 2019

WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT 5.2.1BOARD OF DIRECTORS/MANAGEMENT BENEFITS BREAKDOWNNovember 2019 FOR THE December 11, 2019 BOARD MEETING

ACWA BLUE CROSS OF CA HARTFORDNAME MED VISION LIFE/AD &D CLAIMS ADM DISABILITY TOTAL

ATKINSON 1,752.48 17.21 9.73 *** 16.50 0.00 ***BLAINE 2,262.51 17.21 3.93 *** 16.50 0.00 ***

FRY 2,262.51 17.21 3.13 *** 16.50 0.00 ***MARIN 2,262.51 17.21 3.93 *** 16.50 0.00 ***

METTLER 1,752.48 17.21 3.93 *** 16.50 0.00 ***MULLINS* 2,262.51 17.21 9.73 *** 16.50 0.00 ***REITER 859.93 17.21 3.13 *** 16.50 0.00 ***

RICHARDSON 2,262.51 17.21 2.13 *** 16.50 0.00 ***VALPREDO 2,262.51 17.21 3.13 *** 16.50 0.00 ***

JONES 1,752.48 17.21 59.83 *** 16.50 65.30 ***LOVELESS 2,262.51 17.21 22.33 *** 16.50 65.30 ***NICHOLAS 2,262.51 17.21 22.33 *** 16.50 65.30 ***

SMITH J 2,262.51 17.21 59.83 *** 16.50 65.30 ***SUGGS 2,262.51 17.21 59.83 *** 16.50 65.30 ***

30,479.38 258.15 326.75 1,034.83 247.50 391.18

TOTAL BENEFITS 32,737.79

*** INDIVIDUAL CLAIM AMOUNTS ARE CONFIDENTIAL PER THE HEALTH INSURANCE PORTABILITY ACCOUNTABILITY ACT (HIPAA)

* LAST MONTH OF BENEFITS

DENTAL-HEALTHEDGE

Page 8 of 13

5.2.1WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICTBOARD OF DIRECTORS/MANAGEMENT COMPENSATION & EXPENSE BREAKDOWNNOVEMBER 2019 for the DECEMBER 11, 2019 BOARD

NAME DATE TOTAL PAYEE MEMO

Atkinson 13-Nov-19 129.00 Atkinson Regular Board Meeting/mileage - wedAtkinson 5-Nov-19 125.00 Atkinson Conference Call KCWA meeting with the Congressman - tueAtkinson 12-Nov-19 125.00 Atkinson KCWA meeting - tueBlaine 13-Nov-19 128.00 Blaine Regular Board Meeting/mileage - wedBlaine 7-Nov-19 125.00 Blaine Kern River Watershed Coalition Board Meeting - thuBlaine 20-Nov-19 125.00 Blaine Kern Groundwater Authority Board Meeting - wedFryMarin 13-Nov-19 125.00 Marin Regular Board Meeting/mileage - wedMettler 13-Nov-19 128.00 Mettler Regular Board Meeting/mileage - wedReiter 13-Nov-19 139.00 Reiter Regular Board Meeting/mileage - wedRichardson 13-Nov-19 128.00 Richardson Regular Board Meeting/mileage - wedValpredo 13-Nov-19 129.00 Valpredo Regular Board Meeting/mileage - wed

DIRECTORS 1,406.00

Page 9 of 13

5.2.1WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICTBOARD OF DIRECTORS/MANAGEMENT COMPENSATION & EXPENSE BREAKDOWNNOVEMBER 2019 for the DECEMBER 11, 2019 BOARD

NAME DATE TOTAL PAYEE MEMO

JonesLovelessNicholas 9-Nov-19 108.96 Verizon Communication - cellSmithSuggs

MANAGEMENT 108.96

Kunde 09/18-10/30 2019 1,158.84 Kunde Sacramento Meetings (4), Conference Calls (3) - mileageKunde 09/18-10/30 2019 18.00 Kunde Sacramento Meetings (4), Conference Calls (3) - parking/tollsKunde 09/18-10/30 2019 48.13 Kunde Sacramento Meetings (4), Conference Calls (3) - mealsKunde 09/18-10/30 2019 70.97 Kunde Sacramento Meetings (4), Conference Calls (3) - lodging

RETIRED ANNUITANT 1,295.94

Board

TOTAL EXPENSE 2,810.90

*** note: retired annuitant costs are expense reimbursements not compensation

Page 10 of 13

5.2.1WHEELER RIDGE - MARICOPA WSD

PAYROLL FUNDNOVEMBER 2019

DECEMBER 11, 2019 BOARD MEETINGEMPLOYEES DIRECTORS RETIREES COBRA SUPPLEMENTAL TOTALS

SALARIES 80,376.18 1,737.46 82,113.64Pay Period Ended: (NOV 02, 2019/EE)-(OCT 31,2019/DIR)

SALARIES 0.00 0.00Pay Period Ended:

SALARIES 85,366.86 85,366.86Pay Period Ended: (NOV 16, 2019)

PAYROLL PEOPLE 56,880.92 291.04 57,171.96Federal, SSI, Medicare Taxes

PAYROLL PEOPLE 9,959.26 53.29 10,012.55State Tax / SDI / SUI

PERS (EMPLOYEE PORTION) 16,767.13 16,767.13RETIREMENT

PERS (EMPLOYER PORTION) 27,638.05 27,638.05RETIREMENT

PERS (UAL,GASB 68 reports, fees) 0.00 0.00RETIREMENT - classic & pepra

NATIONWIDE DEFERRED COMPENSATION 620.00 620.00Deferred Compensation #1 Deductions

LINCOLN LIFE 3,302.00 3,302.00Deferred Compensation #2 Deductions

WRM WSD EMPLOYEES' FUND 258.00 258.00Employees' Fund Deductions

ACWA-HEALTH BENEFITS 81,564.10 18,094.84 29,050.59 859.93 129,569.46Medical/Vision Insurance Premium (+cobra)

ACWA-LIFE/AD&D 1,356.42 43.24 69.22 1,468.88Life/supplemental Insurance Premium

HEALTH EDGE ADMINISTRATORS INC 742.50 148.50 445.50 16.50 1,353.00Dental Insurance Administrative Fees (+cobra)

HEALTH EDGE ADMINISTRATORS INC 1,660.88 992.73 1,679.40 66.66 4,399.67Dental Insurance Claims

THE HARTFORD GROUP 2,873.31 2,873.31Long Term Disability Insurance

CA STATE DISBURSEMENT - FRANCHISE TAX BOARD 184.60 184.60IWO (income withholding orders x 2 jm)

PAYROLL PEOPLE 360.76 94.96 455.72P/R Processing Fees

TOTAL PAYROLL FUND: 369,910.97 21,456.06 31,175.49 943.09 69.22 423,554.83

5.2.1WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT

REIMBURSEMENTS AND TRANSFERSDECEMBER 11, 2019 BOARD MEETING

NOVEMBER 2019

GENERAL/REVOLVING ACCOUNT:

FUND #

60710 WRM-WSD WELLS FARGO BANK GENERAL ACCOUNT #4121027197TRANSFER TO PROVIDE FUNDS FOR: NOVEMBER 2019 ACCOUNTS PAYABLE 1 $ 989,839.34

60710 WRM-WSD WELLS FARGO BANK GENERAL ACCOUNT #4121027197

TRANSFER TO PROVIDE FUNDS FOR: 1.1 $

60710 WRM-WSD WELLS FARGO BANK GENERAL ACCOUNT #4121027197TRANSFER TO PROVIDE FUNDS FOR: NOVEMBER 2019 ACCOUNTS PAYABLE 989,839.34 $

60710 WRM-WSD WELLS FARGO BANK GENERAL ACCOUNT #4121027197TRANSFER TO PROVIDE FUNDS FOR: Committee for Delta Reliability 2 $ 92,629.92

60710 WRM-WSD WELLS FARGO BANK REVOLVING ACCOUNT #4121027205TRANSFER TO REIMBURSE FUNDS FOR: NOVEMBER 2019 REVOLVING 3 $ 0.00

TOTAL GENERAL/REVOLVING ACCOUNT: $ 1,082,469.26

PAYROLL ACCOUNT:

FUND #

60710 WRM-WSD WELLS FARGO BANK PAYROLL ACCOUNT #4121027221TRANSFER TO PROVIDE FUNDS FOR PPE: DECEMBER 14, 2019 4 163,000.00

60710 WRM-WSD WELLS FARGO BANK PAYROLL ACCOUNT #4121027221TRANSFER TO PROVIDE FUNDS FOR PPE: DECEMBER 28, 2019 5 280,000.00

60710 WRM-WSD WELLS FARGO BANK PAYROLL ACCOUNT #4121027221

TRANSFER TO PROVIDE FUNDS FOR PPE: JANUARY 11, 2020 6 0.00

TOTAL PAYROLL ACCOUNT: $ 443,000.00 443,000.00

TOTAL REIMBURSEMENTS AND TRANSFERS: $ 1,525,469.26

Page 12 of 13

5.2.1WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT

TRANSFERSDecember 11, 2019 Board Meeting

November 2019

GENERAL ACCOUNT:

FUND #

FROM:60710 Wheeler Ridge - Maricopa Water Storage District - General Account

Transfer to Provide Funds for: $ 22,210,665.00Kern County Water Agency Invoice - Due 01/06/2020

TO:60220 Kern County Water Agency (KCWA) General Account

Transfer to Provide Funds for:Kern County Water Agency Invoice - Due 01/06/2020

TOTAL TRANSFERS: $ 22,210,665.00

NOVEMBER 2019 TREASURER'S REPORT12/9/2019 12:43 PM MONTESA

Page 1 of 1

W H E E L E R R I D G E-M A R I C O P A W A T E R S T O R A G E D I S T R I C T MEMORANDUM

Agenda Item 5.3 TO: Board of Directors

FROM: Sheridan Nicholas, Engineer-Manager, and Greg Loveless, O&M Superintendent


SUBJECT: Contractor Selection for Repaving of District Parking Lot

The 2019 O&M capital expenditures budget included $145,000 to repave the District parking lot. The project would involve the following:

• Complete demolition of the existing 45,000 square feet asphalt surface • Regrade and compaction • Place new asphalt and compact to 3” • Stripe for parking

Bids were obtained from three local companies, Bowman Asphalt Inc, Kern Asphalt, and Perez Asphalt Construction. The project was originally planned for early 2019, however due to a significant increase in material costs, was put on hold. In August 2019, project planning was revisited as material costs had reportedly decreased. The three companies that had previously provided bids were contacted, and the following updated quotes were received:

1. Bowman Asphalt Inc $148,530 2. Kern Asphalt $157,034 3. Perez Asphalt Const. $169,400

The lowest bid amount exceeds the 2019 budgeted amount by $3,530, however the total does not exceed the budgeted item by more than 20%, nor would this amount exceed the total O&M capital budget. We have recently reached out to our contact at Bowman Asphalt Inc and he has ensured the quote from August remains valid. Recommendation: It is recommended that the Board of Directors, under Rule1, Section F, Exception (3) of the District’s Purchasing Policy1, select Bowman Asphalt Inc. to repave the District parking lot; and authorize District staff to perform any and all necessary tasks related to this selection.

1 RULES AND REGULATIONS OF THE WHEELER RIDGE MARICOPA WATER STORAGE DISTRICT ESTABLISHING POLICIES AND PROCEDURES OF SAID DISTRICT FOR PURCHASES OF SUPPLIES, EQUIPMENT, MATERIALS AND SERVICES – RULE 1, SECTION F, Exception (3) Negotiated Purchase: Nothing herein contained shall limit the power of the Board of Directors to obtain or order the acquisition of necessary services or acquire and dispose of property of supplies in any lawful manner it deems appropriate for a particular transaction.

AGENDA ITEM 6.2 (page 1)

UNDER/(OVER)BUDGET TO % OF

ANNUAL ANTICIPATED TO ACTUAL SPENT ACTUAL ANTICIPATEDBUDGET CLASS BUDGET DATE TO DATE DIFFERENCE TO DATE

I PAYROLL SALARIES 3,187,666 2,697,256 2,628,926 68,330 97.47%PAYROLL TAX 246,461 208,544 208,501 43 99.98%PAYROLL PERS 392,952 332,498 302,339 30,158 90.93%PAYROLL HEALTH 1,106,596 922,163 876,618 (a) 45,546 95.06%TOTAL PAYROLL & BENEFITS 4,933,675 4,160,461 4,016,384 144,077 96.54%

FUEL & OIL 261,000 217,500 229,202 (11,702) 105.38%MATERIALS & SUPPLIES 799,315 666,096 603,460 62,636 90.60%SMALL TOOLS & INSTRUMENTS 41,155 34,296 15,226 19,070 44.40%WELL MAINT. STANDBY POWER 0 0 0 0.00%COMMUNICATIONS 56,750 47,292 24,606 22,686 52.03%DIRECTORS FEES & EXPENSES 42,000 35,000 27,161 7,839 77.60%DIRECTORS HEALTH 240,000 200,000 194,030 (a) 5,970 97.02%INSURANCE & BONDS 209,000 174,167 128,520 (1) 45,647 73.79%RETIREES-OPEB 355,000 295,833 287,096 (a) 8,737 97.05%MEMBERSHIPS 135,175 112,646 91,018 21,628 80.80%MISC SERVICES & SUPPLIES 69,050 64,925 64,925 0 100.00%OFFICE SERVICES & SUPPLIES 44,205 36,838 29,849 6,988 81.03%COMPUTER SUPPLIES 45,400 37,833 33,802 4,031 89.34%MAINT. & REPAIR BY OTHERS 302,970 252,475 120,685 131,790 47.80%PROFESSIONAL & SPECIALIZED-LEGAL 90,000 75,000 57,123 17,877 76.16%PROFESSIONAL & SPECIALIZED-ACCT: AUDIT 45,000 45,000 47,750 (2) (2,750) 106.11% WELLS FARGO FEES 4,000 3,333 2,944 389 88.32%PROFESSIONAL & SPECIALIZED-OTHER 225,620 188,017 155,782 32,235 82.86%SGMA - KERN GW AUTHORITY 350,000 291,667 283,314 8,353 97.14%SGMA - WHITE WOLF GSA 120,000 100,000 81,379 18,621 81.38%LEGAL NOTICES & PUBLICATIONS 14,820 12,350 5,152 7,198 41.72%

* RENTED EQUIPMENT 46,795 38,996 41,228 (2,232) 105.72%SPECIAL DEPARTMENT EXPENSE 12,000 12,000 19,275 (3) (7,275) 160.63%TRANSP & TRAVEL EXPENSE 46,370 38,642 28,624 10,018 74.08%UTILITIES 85,000 70,833 68,315 2,518 96.44%JUDGEMENTS & CLAIMS EXPENSE 6,600 5,500 0 5,500 0.00%CURRENTLY FUNDED ASSETS 1,190,000 429,794 429,794 0 100.00%RESERVE FUNDED ASSETS 635,000 227,774 227,774 0 100.00% SUBTOTAL 10,405,900 7,874,266 7,314,419 559,847 92.89%

II KCWA F.O. 28,160,929 28,160,929 28,160,929 0 100.00%KCWA VARIABLE 7,205,381 7,205,381 7,205,381 0 100.00%

DISTRICT POWER-PUMPS 10,283,629 10,283,629 10,283,629 0 100.00% SUBTOTAL 45,821,488 45,821,488 45,821,488 0 100.00%

TOTAL 56,227,388 53,695,754 53,135,907 559,847 98.96%

(a) Health Insurance combined 1,701,596 1,417,997 1,357,744 60,253 95.75%

(1) Received a $38,151 refund from the ACWA/JPIA RPA Stabilization Fund(2) Additional fees for GASB implementation and OPEB valuation(3) Three retirement parties

WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICTBUDGET EXPENDITURES REPORTPERIOD ENDING OCTOBER 2019

(UNAUDITED)

S:\Management\Shared_AA\Board Mailing DEC 11, 2019\2019 Budget Status Board

AGENDA ITEM 6.2 (page 2)

CAPITAL EXPENDITURES BUDGET - PERIOD ENDING OCTOBER 2019# of ITEMS

BGT COST TOTAL CURRENT RESERVE (net of CURRENT RESERVE % PURCH ofQTY DESCRIPTION PER ITEM BUDGET FUNDED FUNDED trade) FUNDED FUNDED OF BGT. BUDGET

ADMINISTRATION:1 SITES RESERVOIR 25,000 25,000 25,000 0%

SUBTOTAL 25,000 - 25,000 - - -

ENGINEERING:1 850 SYSTEM - POWER COST REDUCTION FACILITIES 500,000 500,000 500,000 3 RECTIFIERS 3,500 10,500 10,500 9,198 9,198 88% 3 of 30 SACRIFICIAL ANODES - - 0 REFERENCE CELLS - -

SUBTOTAL 510,500 10,500 500,000 9,198 9,198 -

OPERATIONS AND MAINTENANCE:2 FULL SIZE 1/2 TON STANDARD CAB PICKUP 25,000 50,000 50,000 36,240 36,240 72% 2 of 21 FULL SIZE 1/2 TON CREW CAB PICKUP 28,000 28,000 28,000 22,990 22,990 82% 1 of 11 FULL SIZE 1/2 TON CREW CAB 4x4 PICKUP 35,000 35,000 35,000 28,292 28,292 81% 1 of 11 FULL SIZE 3/4 TON STANDARD CAB 4x4 PICKUP 35,000 35,000 35,000 23,713 23,713 68% 1 of 11 FULL SIZE 3/4 TON EXT. CAB PICKUP w/ Scelzi SB98 Utility Bed 45,000 45,000 45,000 28,795 28,795 64% 1 of 12 FULL SIZE 1 TON EXT. CAB PICKUP w/ Scelzi SB98 Utility Bed 55,000 110,000 110,000 67,525 67,525 61% 2 of 21 1-1/2 TON UTILITY TRUCK 47,248 1 SUPER 10 DUMP TRUCK 200,000 200,000 200,000 180,526 180,526 90% 1 of 11 SUPER 10 DUMP TRUCK 180,526 1 ROLL-OFF TRAILER WITH BIN 15,000 15,000 15,000 15,000 15,000 100% 1 of 11 4" DIESEL PUMP 45,000 45,000 45,000 0%1 REPAVE DISTRICT PARKING LOT 145,000 145,000 145,000 0%1 REPLACE WELDING SHOP DOORS 18,500 18,500 18,500 0% SEE NOTE 11 COAT ROOF - MAINT BLDG, WAREHOUSE, WELD SHOP 17,000 17,000 17,000 17,515 17,515 103% 1 of 11 PAINT - MAINT BLDG, WAREHOUSE, WELD SHOP 58,000 58,000 58,000 0% SEE NOTE 11 (LOT) HIGH EFFICIENCY ELECTRIC MOTOR REPLACEMENT 100,000 100,000 100,000 0% SEE NOTE 11 WRM 9A TRAVELING WATER SCREEN (a) 110,000 110,000 110,000 0%1 ELECTRONIC DOCUMENT STORAGE HARDWARE 33,000 33,000 33,000 0%1 ELECTRONIC DOCUMENT STORAGE PROJECT 75,000 75,000 75,000 0% SEE NOTE 2

($225,000 over 3 years)1 SCADA UPGRADE - TESCO 170,000 170,000 170,000 0%

SUBTOTAL 1,289,500 1,179,500 110,000 420,596 420,596 227,774

TOTAL CAPITAL EXPENDITURES 1,825,000 1,190,000 635,000 429,794 429,794 227,774

NOTES:(1) These line items will not be purchased in 2019, and

instead are reflected in the 2020 Capital Expenditures Budget(2) This project will not be started in 2019, and instead

is budgeted in Administrative costs for 2020

BUDGET ACTUAL

(Budgeted in 2020)

(Budgeted in 2020)

S:\Management\Shared_AA\Board Mailing DEC 11, 2019\2019 Capital Budget

WHEELER RIDGE – MARICOPA WATER STORAGE DISTRICT 12109 Highway 166, Bakersfield, CA 93313-9630, 661-858-2281

MEMORANDUM TO: BOARD OF DIRECTORS FROM: SHERIDAN NICHOLAS DATE: DECEMBER 11, 2019 SUBJECT: ENGINEER-MANAGER’S MONTHLY REPORT FOR NOVEMBER 2019 During the month of November, the District delivered 6,300 acre-feet of water consisting of the four water types described below. This compares to projected deliveries of 6,100 acre-feet estimated in September 2018. Of the total quantity delivered, 91 acre-feet were delivered for industrial use, and the remaining were delivered for agricultural use. The total quantities of water delivered during the month as well as the year-to-date water supply by source and type of water delivery are summarized in the following tabulation:

(a) 2019 updated allocation of 147,816 acre-feet (75%) (b) At 1/1/19, an estimated 23,153 acre-feet of 2018 Carryover was available (7,306 acre-feet District, 15,847 acre-feet Water User) (c) District estimates 2,306 acre-feet of 2019 Article 21 Supplemental 2 water was delivered in-District, exact figures pending KCWA and DWR validation. (d) As per WRM / Pastoria and WRM / Granite / TCCWD Agreements

Source of Supply Jan-Oct Nov YTD2019 SWP Entitlement (a) 119,345 6,166 125,511 2018 Carryover (b) 7,712 0 7,7122019 Article 21 - Supp 2 Supply (c) 2,306 0 2,306Santa Clarita VWA 2,670 0 2,670Kern River & Lower River Water 13,005 0 13,005Kern Water Bank/Pastoria (d) 2,200 89 2,289TCCWD/Granite (d) 4 1 5Western Hills (WS5) 1,394 0 1,394User Input-District Wells 328 0 328User Input-Private 5,209 46 5,255Friant Recirc Supply 468 0 468Landowner Transfers 3,200 - 3,200

Total 157,840 6,300 164,140

Type of DeliveryIrrigation 155,619 6,209 161,829Industrial Contract 2,204 90 2,294Other Industrial 18 1 19

Total 157,840 6,300 164,140

Quantities (Acre- Feet)

MEETINGS ATTENDED DURING NOVEMBER

Engineer-Manager Sheridan Nicholas attended the following meetings.

November 05 California Water Briefing w/Kevin McCarthy November 08 Pioneer Budget Subcommittee November 12 Special Member Unit Managers Meeting November 12 Water Association of Kern County Annual Meeting November 14 SJV Water Launch Party November 19 Member Unit Policy Meeting November 20 KGA Board Meeting November 20 SVWRA Board Meeting November 20 KCWA Board Meeting November 21 Tejon Ranch November 26 South of Kern River Conference Call November 26 KGA Managers Meeting Retired Annuitant Rob Kunde attended the following meetings. November 04 Sites Project - Coordination Work Group Conference Call November 05 Delta Conveyance Project - Policy Update Conference Call November 05 Committee for Delta Reliability November 06 Sites Reservoir - Operations Work Group Conference Call November 07 Kern River Watershed Coalition Authority Board of Directors November 12 Delta Conveyance Project - Policy Briefing November 12 Water Association of Kern County Annual Meeting November 13 Delta Conveyance Project - Public Negotiation #9 - Rancho Cordova November 14 Delta Conveyance Project - Public Negotiation #9 - Rancho Cordova November 15 Delta Conveyance Project - Public Negotiation #9 - Rancho Cordova November 15 Sites Reservoir - Joint Authority/Reservoir Project Committee Workshop November 19 Member Unit Policy Committee November 19 Delta Conveyance Project - Policy Update Conference Call November 20 State Water Contractors - Committee Meetings - Sacramento November 21 Sites Reservoir - Reservoir Project Committee - Sacramento November 21 Sites Reservoir - Joint Authority/Reservoir Committee - Sacramento November 21 State Water Contractors - Board of Directors - Sacramento November 22 Delta Conveyance - Member Unit Managers Contract Amendment Consultant Bill Taube attended the following meetings. November 05 KWB Board November 12 WAKC Annual meeting November 13 WRM Bd November 18 CVC Advisory Committee November 19 ACWA Region 6&7 conference call November 20 KGA Board November 20 SVWRA Board November 22 ACWA Board

WATER RESOURCES MANAGER REPORT (W. JONES)

2019 State Water Project Allocation. The 2019 State Water Project allocation is 75% as announced by the Department of Water Resources on June 19, 2019.

2020 State Water Project Allocation. The California Department of Water Resources announced the initial 2020 State Water Project allocation of 10% on December 2, 2019. Per DWR’s Notice Number 19-12 dated December 2, 2019, this initial allocation is made consistent with the long-term water supply contracts and public policy. DWR’s approval considered several factors including existing storage in SWP conservation reservoirs, SWP operational constraints such as the conditions of the Biological Opinions for Delta Smelt and Salmonids, and the Longfin Smelt Incidental Take Permit, and the 2020 contractor demands. DWR may revise the initial and subsequent allocations if warranted by the year’s developing hydrologic and water supply conditions.

The 10% allocation is consistent with the 90% probability of exceedance study with least Old and Middle River (OMR) restrictions in DWR’s November 1, 2019 “Allocation Analysis for 2020” (Analysis). The Analysis includes different ranges of impacts from the Delta Smelt and Salmon Biological Opinions as well as the Longfin Incidental Take Permit (the Analysis uses existing Delta Smelt Biological Opinion standards). Key points of the Analysis include: 1. Under median conditions (50% probability of exceedance = median conditions) the allocation

would be 41%. Under a 41% allocation, there is no capacity to transfer non-Project wateracross the Delta (due to OMR restrictions) and no Article 21 would be available.

2. Without the Biological Opinions, the 50% POE forecast would be for an 77% allocation andover 980,000 acre-feet of Article 21 water would be available.

3. Water supply reductions under median conditions from the Biological Opinions could rangeup to 1.568 MAF depending on how restrictive the fishery agencies are with OMR flows.

4. Under no allocation scenarios will San Luis Reservoir near dead storage during 2019.

The November 2019 DWR Analysis results for 2020 are as follows (values in acre-feet). Source/Hydrology Dy Blw Nrml Nrml Wet

SWP Allocation 7% 24% 41%

44%

OMR Restriction [a] MModerate Moderate Moderate Moderate Prob. of Exceedance [b] 990% 75% 50% 25% District Supply 13,797

47,304

80,811

86,724 [a] Average Old and Middle River reverse flow restrictions (cfs) from December 2019 to June

2020. Least OMR Restrictions would add approximately 4% to the Allocation.[b] Example: a 90% Probability of Exceedance means there is a 9 in 10 chance conditions will

be wetter than assumed, and 1 in 10 chance conditions will be conditions will be drier thanassumed.

Water Conditions. The “Northern Sierra 8-Station Precipitation Tabulation” index of rain and snow water content for the Sacramento, Feather, Yuba and American River Basins in November was 2.9 inches of the monthly average of 6.6 inches. Accumulation for the season is as follows:

Current Amount – October 1, 2019 – September 30, 2020 3.00” Average (historic) to Date 9.50” Average (historic) for the entire Water Year (Oct. 1 through Sep. 30) 51.80” Percent of Average to Date through Nov. 30, 2019 32%

Note that precipitation is not runoff, and runoff is not Delta export pumping for the District. Under normal conditions, an average precipitation year equates to a 65% to 75% SWP allocation depending on timing and proportions of snow and rain.

The November 30, 2019 “San Joaquin 5-Station Precipitation Tabulation” index was 3.2 inches, which is 5% of historical average. note because significant San Joaquin River flows allow for greater pumping at the Delta by lowering reverse flows on the Old and Middle Rivers. Carryover and Spill Conditions. The District continually reviews current San Luis Reservoir (SLR) storage levels (Nov. 30th – 43% capacity, 72% of average) to determine optimum carryover amounts.

End of month San Luis Reservoir conditions were as follows:

Description Million Acre-feet (MAF)

SLR Capacity SWP Share 1.062 CVP Share 0.966 SWP + CVP subtotal 2.028

Actual December 31, 2011 storage 1.928 Actual December 31, 2012 storage 1.098 Actual December 31, 2013 storage 0.604 Actual December 31, 2014 storage 0.820 Actual December 31, 2015 storage 0.436 Actual December 31, 2016 storage 1.259 Actual December 31, 2017 storage 1.638 Actual December 31, 2018 storage 1.503 Actual November 30, 2019 storage

SWP Share 0.626 CVP Share 0.251 SWP + CVP subtotal .877

At the District’s regular Board Meeting held August 14, 2019, it was announced that WRM will be adhering to its standard Carryover Policy of 5% of the Contract Amount of Water (“CAW”) for 2019 carryover into 2020. Water User carryover of Landowner Transfer, SWP entitlement, and other Board authorized water supplies available to Water User, would be permitted with an upper limit of 5% of CAW for each Water User. All water held by Water Users at December 31, 2019, in excess of 5% of their CAW will be subject to loss without notice and the District shall not be responsible for losses or damages from the loss of Carryover water.

SWC Water Ops Fall Workshop and Tour. The State Water Contractors Water Operations Fall Workshop and SWP Inspection Tour was held in Sacramento and outlying areas on November 18-19, 2019. The workshop was well attended and included many speakers presenting various topics including a review of 2019 SWP Operations, the 2020 SWP Supply Outlook and the new BiOps. An excerpt of the 2020 Water Supply Analysis presented at the workshop is included in this Board packet. The inspection tour was informative and included Banks Pumping Plant, UC Davis Fish Lab, Skinner Fish Facility and Big Break Regional Shoreline.

Excess Supplies. Water User excess supplies can be returned to the District for immediate pumping credits. Fixed

Obligation (F.O.) credit is not available unless the District is able to secure a buyer for the water. Optionally, a Water User may seek out their own, in-District buyer for their excess supplies and upon successful completion of a District Water Transfer Agreement, receive both pumping and F.O. credits. If there are any unsubscribed supplies that are eligible for carryover into 2020, Water Users may receive F.O. credits during the 2019 Final Accounting Adjustment process in 2020. Though not likely, the District may suspend water returns as the year-end approaches. Meetings. The Water Resources Manager attended various meetings during the month.

ACCOUNTING ACTIVITIES (J. SMITH) Controller’s Report: 2019 Water Allocations, Deliveries and Billings. The November Water Reports were mailed December 3. The second revised SWP allocation is 75% of the Contract Amount of Water or 147,816 acre-feet. Supplemental 1 Water is 10% or 22,903 acre-feet. Other allocations were:

• User Carryover (2018) 11,745.38 acre-feet • User Input 5,254.09 acre-feet • Returns -10,162.00 acre-feet • Purchases 10,162.00 acre-feet • Sup6 $205 wtr 2,025.00 acre-feet • Article 21 2,308.16 acre-feet • Deliveries (Jan-Oct) 161,841.80 acre-feet

The Controller’s activities included:

• 2020 Annual Bills were mailed on November 21. • Updated water allocations in Latis • Attended ACWA JPIA finance committee meeting in San Diego. Discussions included

the policy for the newly formed Captive Insurance company in Utah. • Attended the ACWA JPIA Board meeting in San Diego. • Began update of the District’s purchasing policy.

The Staff Accountant’s activities included:

• Finalized the 2020 Budget and published to staff members • Continued to enter duplicate water accounting transactions, to run parallel with

Controller, for training purposes in 2019 • Posted month end transactions to water accounting and ran all month end reports • Sent out month end reports to water users • Provided answers and reports to water users and staff re: water billing • Provided training to Accountant for miscellaneous Accounts Receivable, journal entries,

and budgeting • Reviewed month end journal entries, prior to Accountant making entries into our

accounting software • Completed the Budget and Capital Expenditure Reports • Attended WRMWSD Board Meeting • Prepared bank reconciliations • Reviewed accounts payable coding prior to posting by Account Clerk • Recapped YTD work order expenses and compiled backup invoices • Responded to a public records request for Accounts Payable information • Prepared financial reports and Accounts Payable checks for Committee for Delta

Reliability, Kern River Watershed Coalition Authority, and South Valley Water Resource Authority

• Prepared cash call invoices for Committee for Delta Reliability • Attended SVWRA Board Meeting • Communicated with auditors to complete South Valley Water Resource Authority

audits for 2015 to 2018 • Prepared Industrial Water invoicing

• Prepared calculations re: 10 years of Industrial Water for Tejon-Castac WD • Responded to requests for Industrial Water purchases • Followed up on past due miscellaneous Accounts Receivable • Collected Employee Committee snack money weekly. Prepared EC monthly financial

statement and bank deposit. • Attended Employee Committee meeting • Continued planning Employee Committee Christmas Party • Made VISA card payments at Wells Fargo in town

The Contract Administrator’s activities included: Contract/ Water Allocation Work

- Contract work for water service contracts 160 & 62 o Received training on the post signature and pre recording process. o Submitted to recorders office.

- Contract work for 20E3, 74, 49, 127, 5, 20E o Received back signed agreements and prepared for Board signatures.

- Assigned new contract numbers for 5A & 20E5 o Received back signed agreements and prepared for Board signatures.

- Contract work for 2.01A o Completed assumption agreements and sent out for signature.

- Updated the 2019-2020 carryover analysis and emailed Users with carryover and use projections.

- Completed the Contract Amendments for the add/exclude approved by Board in Resolution 2019-11. Submitted these drafts for review by WRM.

Landowner Assistance

- Assisted 1 landowner regarding contract add exclude questions. - Assisted 1 landowners regarding District KWB Second Priority Banking program

o Sent acknowledgement email and introductory information - Assisted multiple Water Users with information regarding water ledger—2019 allocation,

YTD use, acre feet remaining, etc. o 1 included an extensive historical use survey from 2014-to present.

- Assisted 4 landowners regarding water sale/ transfer. Other Tasks

- Completed multiple title demands for title companies. - Reviewed the monthly Accounts Payable and distributed Board and Consultant payables. - Completed weekly water schedule updates, reconciling variances with Dispatch &

Controller. o Conducted a review of the Water Schedule and verified recent modifications to

various Water User accounts in order to ensure accuracy. - Managed and reconciled petty cash fund. Managed EC stamp cash fund. - Prepared November monthly report for Board Meeting packet. - Attended monthly safety meeting. - Updated forms for 2020 (Water Transfer, Water Return, etc). - Assisted and trained the Eng. Technician on the creation of maps for Water Users. - Posted (5) Notices of Vacancy for Director Division 9.

The Accountant’s activities included: • Assisted employees with Worker’s Compensation questions/filing as needed • Reviewed CalPERS correspondence. • Prepared Treasurer’s Report. • Prepared Payroll journal entries. • Reconcile miscellaneous and employee accounts receivables. • Provided notary services for staff, customers and District. • Continued employee-benefit summary tracking by employee. • Prepared and filed governmental compliance reports as required • Maintained Salary/CalPERS/Tax/Health worksheet for the budget expenditure report • Assisted employees with travel expense reports • Assisted employees with CalPERS policies. • Maintained District’s accounts payable “SafePay” • Reviewed Wells Fargo Client Analysis Statements for validity of charges • Assisted employees with disability claims as needed • Ongoing payroll training as needed to Account Clerk II • Ongoing training with Staff Accountant, primarily journal entry preparation and posting.

The Account Clerk II’s activities included:

• AP: code, obtain approvals and post all invoices to the District’s account program • Prepared payroll and related burden payments • Prepared Directors payroll • Added interest to account program • Daily desktop deposits of cash receipts • Deposits for KRWCA • Cash receipt summary report for November • Manual checks report for November • Performed accounts payable “Safepay” • Filed and made new vendor folders for accounts payable • Covered front desk during Board Meeting • Set up and clean up for Board Meeting

ENGINEERING ACTIVITIES (T. SUGGS)

November 2019 SGMA: Well access agreements were sent to owners of 14 select wells that comprise the WRMWSD GSA’s water level monitoring well network; one executed agreement was received by month’s end. The Engineering Assistant gained access to two network wells that had been inaccessible for about five years and successfully measured water levels. Fall 2019 Groundwater Level Survey: The Fall Water Level Survey was largely completed in October, but 12 wells were not sounded because they were pumping at the time. Those 12 wells were successfully sounded in November. WRM 9A Traveling Water Screen: A complete package of plans and specifications for this project was forwarded to the State Water Project Analysis Office (SWPAO) on September 24th. SWPAO responded on November 15th with a number of minor comments and requests for additional details. District staff began making revisions to the plans, but revisions were not complete as of this writing. Premium Efficiency Motors Project: About eight man-days were devoted to writing a specification for furnishing 40 new premium efficiency electric motors. The intention is to publish a bid solicitation in late December with a due date of late January. A mandatory job site tour for prospective bidders will be scheduled for early January. User Input Program: District wells were off during the month of November, but Landowner wells produced approximately 46 acre-feet for Water User accounts. All District-owned wells were checked for static water levels. Direct Landowner Services: The following engineering assistance was provided to landowners or members of the general public:

• A Water User was provided with a custom map showing his owned lands. Underground Facilities and Turnouts: Engineering Department staff responded to 377 underground services alerts (USAs) during November, although 258 alerts were easily categorized as presenting no potential conflicts, since they originated from one contractor that is engaged in hand digging around power poles. In November, two different Water Users contacted the Engineering Department directly (outside of the USA system) to request that the District mark its facilities, which was unusual. The Engineering Technician responded to these requests, marking four separate laterals, but also attempted to educate the Water Users on the need to use the USA system. A total of 1.75 miles of District pipelines were marked during the month. In addition, the following field activities and/or research was conducted related to underground facilities:

• The Engineering Assistant worked with the O&M Department to select materials needed for a pipe repair on the 5P-5 Lateral, and then later collected as-built notes.

• The Engineering Assistant also provided engineering support during the scheduled replacement of three large gate valves.

• The Engineering Assistant provided designs and project coordination for a new 10-inch diameter turnout located in the 8G Service Area and collected as-built notes.

• The Engineering Technician worked with a Water User to help ensure that new PVC irrigation pipelines planned for the 3P Service Area will remain at a safe distance from District Laterals.

Maps, Records, and Easements: Engineering Department staff accomplished the following related to maps and records:

• Various revisions were made to the District’s facilities and ownership maps to add missing turnouts, fix labels, and update ownership changes.

• 2019 parcels and tax roll records were obtained from the Kern County Assessor’s Office and brought into the District’s geographic information system (GIS).

• Plan and profile drawings of portions of the South Lake and Lake View systems were updated with redlines to show pipeline crossings and added turnouts.

Kern County Planning Documents Received and Reviewed: The Engineering Department routinely reviews all planning documents received from the Kern County Planning and Community Development Department and others to determine whether comments are needed to defend the interests of the District.

• During November, notice was received that a public hearing is scheduled (for December 10th) before the County Board of Supervisors on the Grapevine Specific and Community Plan by Tejon Ranchcorp. Water supplies for the community were reviewed by District staff several years ago when the first EIR was published, so no response is contemplated at this time, subject to further direction from the Engineer-Manager.

• Notice was received that four separate water districts (Kern Delta, Henry Miller, Rosedale Rio-Bravo, and Buena Vista) intend to adopt a Negative Declaration for their Kern Fan Authority Integration Project. No response was made.

Hydrology and Hydraulics: Pursuant to an ongoing program, daily and weekly data were collected on evaporation, wind, temperature, and rainfall at District weather stations. The new automated weather station located at the PA-2 Pumping Plant was found to be working well and logging data properly. Surface Water or Groundwater Quality: As part of an ongoing program, Aqueduct raw water samples were collected at the untreated water spigot located at the District’s maintenance shop building once per week for e. coli analysis. Results through October 2019 are posted on the District’s website. Corrosion Protection: The following work took place in support of cathodic protection:

• Potentials were measured at nine cathodic protection rectifier stations and minor adjustments were made to rectifier voltage as needed.

• A broken rectifier wire was repaired at the 4P-P2 Pumping Plant with the assistance of the O&M Department.

• Four new pump column anodes, which help protect the submerged portions of pump units, were installed in the WRM 8 Pumping Plant forebay with the assistance of the O&M Department.

• Warranty inspections were made inside the 5P-P3 and 5P-P4 pumping plant hydropneumatic (HP) tanks, which were coated in late 2018. Impressed current anodes and reference cells were placed in both tanks by the Pump & Electrical crew with the assistance of the Corrosion Technician. Anodes are typically first installed one year after coating.

Annual Maintenance Inspections: In addition to the warranty inspections mentioned above, the

HP tanks at the WRM7, 7P-P2, 7P-P3, WRM8 and 8P-P2 pumping plants were inspected as part of annual maintenance. The interior coatings, which were applied between 2014 and 2015, were found to be in excellent condition and the cathodic protection systems were found to be intact. Energy: Work focusing on energy consumption and electrical accounts included the following:

• PG&E bills were received and processed for payment in the November A/P. It appeared that 17 accounts affected by PSPS events in November received what PG&E called a $250 “customer satisfaction credit”.

• Total savings associated with the District’s solar projects over the preceding 12 months was found to be $47,015.

Meetings: Engineering Department staff attended the following meetings during the month:

November 5 KCWA Operations Conference Call November 12 KCWA Operations Conference Call November 12 WAKC Annual Meeting November 19 KCWA Operations Conference Call November 22 Mettler Water Bank Startup Operations Meeting

($100,000)($80,000)($60,000)($40,000)($20,000)

$0$20,000$40,000$60,000

8/1/

2018

9/1/

2018

10/1

/201

8

11/1

/201

8

12/1

/201

8

1/1/

2019

2/1/

2019

3/1/

2019

4/1/

2019

5/1/

2019

6/1/

2019

7/1/

2019

8/1/

2019

9/1/

2019

10/1

/201

9

11/1

/201

9

12/1

/201

9

WRMWSD NET SOLAR PROJECT COSTS (OR SAVINGS)ASSOCIATED WITH SPILL BASIN AND TRIANGLE PARCEL

PG&E Credits IGS Solar Charges Net of Charges and Credits

Parameter November 2019 Since 10/1/2019Days Occurred in

November

Maximum Temperature 84⁰ 92⁰ 6th, 12th, & 19th

Minimum Temperature 32⁰ 32⁰ 4th

No. Days at or over 100° F 0 0 0

No. Days at or under 32° F 0 0 0

Precipitation 0 0 0

Evaporation 3.783" 8.863" ----

Maximum Wind Gust (c) (c) NA

Wind Run 740.2 2,679 ----

2018 2019

Shasta 4,552,000 2,177,030 3,209,173

Oroville 3,538,000 1,029,870 1,922,067

San Luis (Total) 2,028,000 1,172,985 877,224

San Luis (State Share) 1,062,000(a)

738,504 626,404

Folsom 977,000 330,420 493,387

Isabella 361,250 (b)66,763 167,558

Millerton 520,000 293,778 232,867

TOTALS 11,976,250 5,070,846 6,902,276

(b) US Army Corps Of Engineers restricted pool = 361,250AF; normal authorized capacity = 568,000AF

(a) Included in the San Luis (Total); not included in the TOTALS for CAPACITY and STORAGE.

(c) Wind speed gage inoperable.

NR Not reported as of this publication

CLIMATALOGICAL DATA FOR GREENLEE'S PASTURE

Reservoir Capacity Storage at End of November

STORAGE IN MAJOR RESERVOIRS

(Acre-Feet)

OPERATIONS AND MAINTENANCE ACTIVITIES (G. LOVELESS)

Field/System Maintenance.

• Completed fabrication of stop log for WRM-8 inlet. • Fabricated 36” adapter ring for 8G mainline valve installation. • Installed 10” turnout 8G16A on 8G-2 lateral. • Repaired 8G lateral slide gate at WRM-8.

Pipeline Repair

• November 1, 0800 hours - Leak reported on 5P lateral north of turnout 5P47. Repair was completed and service resumed November 1, 1730 hours.

• November 3, 0600 hours - Began mainline valve replacement for 8G and 8G-C laterals. Work was completed and service resumed November 9, 0600 hours.

• November 11, 0700 hours - Began mainline valve replacement for 7P-C lateral. Work was completed and service resumed November 16, 0600 hours.

• November 21, 1000 hours - Isolation valve was replaced for turnout C-11. Service resumed 1530 hours. • November 24, 1600 hours - Repair began on a previously reported leak on the 5P-E lateral. Work was

completed and service resumed November 27, 0600 hours. Power Outage

• November 20, 0730 hours - Power outage WRM-13A, WRM-13B, WRM-14, WRM-15. Service restored 1050 hours.

• November 30, 2310 hours – Power outage WRM-13A, WRM-13B, WRM-14, WRM-15. Service restored 0500 hours.

Other Interruptions in Service

• November 10, 1100 hours – WRM-7 and 7P-P2 were drained for annual maintenance. Work was completed and service resumed November 16, 0600 hours.

• November 16, 1300 hours – WRM-3 and 3P-P2 were drained for annual maintenance. Work was completed and service resumed November 18, 1700 hours.

• November 24, 1600 hours – SCADA Comm fail WRM-8. • November 28, 0700 hours – SCADA Comm fail WRM-8 and 8P-P2. • November 28, 2300 hours – SCADA Comm fail PA-1. • November 29, 2300 hours – SCADA Comm fail WRM-7

Pump and Electrical • Lockout/Tagout was performed on all units at WRM-3 and 3P-P2. Fittings on HP tank at 3P-P2 were

replaced as needed. Low suction switch was checked at WRM-3 and the transducer was checked at 3P-P2 stand tank.

• WRM-3, unit #4 motor was replaced after burnt leads were found following a pump fail. • WRM-4, unit #6 pump fail due to damaged coil and contacts. Starter replaced with Toshiba Vacuum

breaker unit. • Lockout/Tagout was performed on all units at 5P-P2, 5P-P3 and 5P-P4. Three anodes and half-cell were

installed in HP tank at 5P-P3, one anode and half-cell were installed at 5P-P4. • Lockout/Tagout was performed on all units at WRM-7, 7P-P2, and 7P-P3. Check valve was repaired at 7P-

P2, transducer was replaced at 7P-P3. • Lockout/Tagout was performed at WRM-8 repairs to 8G system. WRM-8 and 8P-P2 radio programming

was checked, voltage tests performed, and all connections checked to mitigate nuisance comm fails. Switch in motor controls for the gravity gate was replaced and four sacrificial anodes in the pump forebay were replaced. A burnt lead was repaired in the weather head of unit #2. Unit #6 motor was replaced due to noise in top bearing.

• WRM 9 - Replaced 3” PVC pipe fitting on the travelling water screen.

• PB-2 #1 Pump fail. Replaced lockout relay. • PC-1 - Travelling water screen overloaded and was severely damaged. The screen was delivered to

International Water Screens for repair. • PC-1 – Unit #1 Pump was pulled due to internal damage and delivered to Electric Motor Works for repair. • WRM 15 - Size 1 starter was installed to allow for revers operation of travelling water screen. • 15GP-1 - Unit #1, repaired burnt lead in weather head.

Equipment Maintenance. • Unit #123 had front brakes and battery replaced. • Unit #686B Backhoe had 2500 hr. service. • Unit #370 had a tire replaced. • Installed new oiler hubs and replaced wood decking on trailer #376.

Current gasoline bulk purchase prices for the District are $3.63 per gallon for gasoline and $2.85 per gallon for diesel.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

ACR

E-FE

ET

WATER DELIVERIES SUMMARYThrough November 2019

ESTIMATE ACTUAL

6,300 ac-ft.in November;164,141 ac-ft.year to date

*Based on 75% SWP Allocation & Total Deliveries of 182,000 ac-ft.

Wheeler Ridge-Maricopa Water Storage District(Includes water from the State Water Project, banking projects, District wells, and User input.)

Monthly Deliveries in Acre-Feet

Month 20062007

20082009

20102011

20122013

20142015

20162017

*2018

2019

January 1,962 5,258 1,615 1,265 894 1,613 6,108 2,213 3,367 2,210 1,223 2,425 1,785 3,055February 7,588 7,269 6,933 2,952 3,440 5,333 8,128 6,387 6,380 4,666 3,077 1,454 7,704 1,667March 9,315 12,557 12,392 10,151 8,440 7,938 10,696 10,695 9,627 10,157 10,218 8,184 3,174 5,494April 10,572 15,665 17,770 17,717 12,966 13,935 10,521 16,999 13,994 17,102 13,133 14,731 13,500 14,824May 20,700 25,488 24,384 24,151 20,664 21,545 23,320 25,754 23,317 20,936 21,496 25,759 21,858 16,441June 26,542 29,940 27,348 26,379 29,411 27,534 29,261 29,894 25,128 24,540 29,390 32,629 28,802 27,146July 29,107 28,394 29,661 30,156 32,124 29,719 28,259 28,599 23,476 21,401 29,546 33,290 28,233 30,633August 25,078 21,817 22,680 22,153 23,873 24,461 25,027 24,554 17,490 18,220 26,948 26,639 26,029 27,793September 16,897 13,924 16,050 17,453 18,335 17,923 16,678 17,090 15,244 14,908 15,452 17,376 17,705 18,343October 9,033 9,385 10,797 11,953 8,156 12,343 13,075 13,440 13,394 10,715 11,135 14,974 13,896 12,444November 5,438 5,609 6,093 5,669 5,872 4,699 4,895 6,485 5,412 4,862 4,957 5,351 5,867 6,300December 4,788 7,424 3,245 2,739 2,515 6,315 3,354 6,615 4,231 3,055 2,520 4,449 4,626

Accumulated Monthly Deliveries in Acre-Feet

Month 20062007

20082009

20102011

20122013

20142015

20162017

20182019

January 1,962 5,258 1,615 1,265 894 1,613 6,108 2,213 3,367 2,210 1,223 2,534 1,785 3,055February 9,550 12,527 8,548 4,217 4,334 6,946 14,236 8,600 9,747 6,876 4,300 3,879 9,489 4,722March 18,865 25,084 20,940 14,368 12,774 14,884 24,932 19,295 19,373 18,191 14,518 12,063 12,663 10,216April 29,437 40,749 38,710 32,085 25,740 28,819 35,453 36,294 33,367 35,293 27,651 26,794 26,163 25,040May 50,137 66,237 63,094 56,236 46,404 50,364 58,773 62,048 56,684 55,071 49,147 52,553 48,021 41,481June 76,679 96,177 90,442 82,615 75,815 63,014 88,034 91,942 81,812 79,611 78,537 85,182 76,823 68,627July 105,786 124,571 120,103 112,771 107,939 107,617 116,293 120,541 105,288 101,012 108,082 118,472 105,056 99,260August 130,864 146,388 142,783 134,924 131,812 132,078 141,320 145,096 122,778 119,232 135,030 145,111 131,085 127,053September 147,761 160,312 158,833 152,377 150,147 150,001 157,998 162,186 138,022 134,140 150,482 162,487 148,790 145,396October 156,794 169,697 169,630 164,330 158,303 162,344 171,073 175,626 151,416 144,855 161,617 177,461 162,686 164,140November 162,232 175,306 175,723 169,999 164,175 167,043 175,968 182,111 156,828 149,717 166,574 182,812 168,553

December 167,020 182,730 178,968 172,738 166,690 173,358 179,322 188,726 161,059 152,772 169,094 187,261 173,179SWP Allocation% 100% 60% 35% 40% 50% 80% 65% 35% 5% 20% 60% 85% 35% 75%SWP Allocation (AF) 197,088 118,253 68,981 78,835 98,544 157,670 128,107 68,981 9,854 39,418 118,253 167,525 68,981 147,816

California Snow Water Content, July 17, 2019, Percent of April 1 Average

Statewide Percent of April 1: 0% Statewide Percent of Average for Date: 0%

Dec Jan Feb Mar Apr May Jun Jul

0

5 0

1 0 0

1 5 0

2 0 0

2 5 0

Average1 9 7 6 - 1 9 7 7

1982-1983 (max)

2014-2015 (min)

2 0 1 6 - 2 0 1 7

2 0 1 7 - 2 0 1 8

2 0 1 8 - 2 0 1 9

North

0

5 0

1 0 0

1 5 0

2 0 0

2 5 0

Average1 9 7 6 - 1 9 7 7

1982-1983 (max)

2014-2015 (min)

2 0 1 6 - 2 0 1 7

2 0 1 7 - 2 0 1 8

2 0 1 8 - 2 0 1 9

Central

0

5 0

1 0 0

1 5 0

2 0 0

2 5 0

Average

1 9 7 6 - 1 9 7 7

1982-1983 (max)

2014-2015 (min)

2 0 1 6 - 2 0 1 7

2 0 1 7 - 2 0 1 8

2 0 1 8 - 2 0 1 9

South

Northern Sierra Precipitation: 8-Station Index, November 30, 2019

To

tal

Wa

ter

Ye

ar

Pre

cip

ita

tio

n

Oct 1 Nov 1 Dec 1 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sep 1 Oct 1Water Year (October 1 - September 30)

0

5

1 0

1 5

2 0

2 5

3 0

3 5

4 0

4 5

5 0

5 5

6 0

6 5

7 0

7 5

8 0

8 5

9 0

9 5

1 0 0C

um

ula

tiv

e D

ail

y/M

on

thly

Pre

cip

ita

tio

n (

inc

he

s)

51.8Average (1966-2015)

19.01976-1977(2nd driest & driest thru Aug)

88.51982-1983 (2nd wettest)

82.41 9 9 7 - 1 9 9 8

37.22014-2015 Daily Precip

94.72016-2017 Daily Precip (wettest)



Current: 2.2

Percent of Average for this Date: 23%Mount Shasta CityShasta DamMineral

QuincyBrush Creek

Sierraville RSBlue Canyon

Pacific House

contains hidden rows

as of Nov. 30, 2019 based on June 19, 2019 75% SWP allocation

Values in acre-feet 06/19/19 DWR

ALLOCATION

Capacity Supply Shortage

Sacramento Valley Water Year Index (40-30-30)

Probability of Exceedance (a) 90% POE

SWP Allocation (a) 75% Alloc

Assumptions

Estimated Demand

-- WRMWSD in-District deliveries (b) 182,000

-- less demands over the CAW 0

– less Pastoria Energy Facility demands from KWB -3,500

Total Estimated Demand 178,500

Surface Supplies

SWP Table A Entitlement 197,088 147,816 30,684

Article 21 In-District deliveries **(estimate)** 2,306 2,306 28,378

KR and Lower River Water estimate (d) 13,005 13,005 15,373

SWP Supply 163,127 81.2%

Western Hills Water District 1,429 1,429 13,944

Supplemental 1 Supplies - District

Browns Valley ID 0 0 13,944

Butte County 3,508 3,508 10,435

San Luis Water District (WS5) 674 674 9,761

Santa Clarita VWA Table A Supply (WS5) 2,670 2,670 7,091

Estimated 2018 District Carryover In-District Deliveries 1,164 1,164 5,927

District & BRID Wells - actual (c) 328 328 5,598

5,598

Supplemental 1 Water Available 8,345

DISTRICT ALLOCATION 172,902 86.1%

2.40 AF/AC

Supplemental 2 Supplies

San Luis Water District (WS5) 2,023 2,023 3,575

3,575


Supplemental Supplies - Water User *

Estimated 2018 Water UserCarryover In-District Deliveries 6,548 6,548 -2,973

User Input - actual 5,254 5,254 -8,227

User Input - (modified) estimate through EOY 746 746 -8,973

Landowner Transfer 3,154 3,154 -12,127

0 -12,127

Available Supply 239,899 190,627

Estimated Demand 178,500

Shortage (Excess) (12,127)

(a) Per 6/19/19 SWP 75% allocation

(b) Based upon estimated Deliveries for a 75% SWP Allocation. Lyndal Water not yet calculated, nor included.

(c) This quantity not included on 2019 Melded Cost of SWP and Supp Water

(d) Estimated supplies delivered May-Sept

* Water User's Kern Water Bank Second Priority accounts estimated total 2017 to date:

2017 1,568 8 PARTICIPANTS

2018 (125) 1 2017 PARTICIPANT RECOVERED 2017 BANKED SUPPLY

2018 1,000 1 2017 PARTICIPANT SUPPLEMENTED THEIR ACCOUNT

2019 4,364 3 NEW PARTICIPANTS AND 1 2017 PARTICIPANT RECHARGED PORTIONS OF 2018 CARRYOVER

2019 7,420 4 NEW PARTICIPANTS RECHARGED PORTIONS OF SUPPLEMENTAL ACQUISTIIONS

2019 4,400 2 PRIOR PARTICIPANTS RECHARGED 2019 'AT RISK' EXCESS SUPPLIES

18,627 AF - ESTIMATED TOTAL 2017 TO DATE

Item 8.2.b.

WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT

2019 WATER SUPPLY/DEMAND ESTIMATE

Wet

or (Excess)

LOCATION AF

Kern WB 193,203

KCWA 54,656

North Kern 0

SemiTropic 7,500

TOTAL 255,359

SUBJECT TO REVISION

WATER IN STORAGE @ 8/31/19

PRELIMINARY

12/5/2019 - W. Jones

contains hidden rows

as of Jan. 01, 2020 based on Dec. 2, 2019 10% SWP allocation

Values in acre-feet 12/02/2019 DWR 25% SWP 40% SWP

ALLOCATION ALLOCATION ALLOCATION

Capacity Supply Shortage Supply Shortage Supply Shortage

or (Excess) or (Excess) or (Excess)

Sacramento Valley Water Year Index (40-30-30)

Probability of Exceedance (a) 90% POE

SWP Allocation (a) 10% Alloc 25% Alloc 40% Alloc

Assumptions

Estimated Demand

-- WRMWSD in-District deliveries (b) 182,000 182,000 182,000

-- less demands over the CAW 0 0 0

– less Pastoria Energy Facility demands from KWB -3,500 -3,500 -3,500

Total Estimated Demand 178,500 178,500 178,500

Surface Supplies

SWP Table A Entitlement 197,088 19,709 158,791 49,272 129,228 78,835 99,665

SWP Supply 19,709 9.8% 49,272 24.5% 78,835 39.3%

Western Hills Water District 8,000 0 158,291 54 128,674 378 98,787

158,291 128,674 98,787

Supplemental 1 Supplies - District

District Carryover from 2019 1,000 1,000 157,291 1,000 127,674 1,000 97,787

Butte County 3,200 86 157,205 216 127,458 345 97,442

San Luis Water District (WS5) 2,700 2,700 154,505 2,700 124,758 2,700 94,742

Kern Water Bank - actual 0 0 154,505 0 124,758 0 94,742

Kern Water Bank - estimated through end of year 25,000 25,000 129,505 25,000 99,758 25,000 69,742

Pioneer Project - actual 0 0 129,505 0 99,758 0 69,742

Pioneer Project - estimated through end of year 5,000 5,000 124,505 5,000 94,758 5,000 64,742

District & BRID Wells - actual 0 0 124,505 0 94,083 0 63,662

District & BRID Wells - estimated through EOY 10,000 10,000 114,505 10,000 84,083 10,000 53,662


DISTRICT ALLOCATION 63,995 31.9% 94,417 47.0% 124,838 62.2%

0.90 AF/Alloc Ac 1.33 AF/Alloc Ac 1.76 AF/Alloc Ac

Supplemental 2 Supplies ( these discussions have not begun )

Dry Year Transfer Program-figures to include estimated carriage loss 0 0 114,505 0 84,083 0 53,662

Yuba C4 0 0 114,505 0 84,083 0 53,662

Browns Valley ID 0 0 114,505 0 84,083 0 53,662

Supplemental Supplies - Water User

Water User - Carryover from 2019 7,500 7,500 107,005 7,500 76,583 7,500 46,162

User Input - actual 0 0 107,005 0 76,583 0 46,162

User Input - estimated through EOY 20,000 20,000 87,005 15,000 61,583 10,000 36,162

Landowner Transfer 0 0 87,005 0 61,583 0 36,162

Available Supply 287,488 91,496 116,918 142,340

Estimated Demand 178,500 178,500 178,500

Shortage (Excess) 87,004 61,582 36,160

(a) Per 12/02/2019 SWP 10% allocation

(b) Based upon estimated Deliveries based on 30% SWP Allocation. Lyndal Water not yet calculated.

Estimates for Banking Project recovery and District Well productions follow 2017 Rationing policy. WATER IN STORAGE @ 8/31/19

LOCATION AF

Kern WB 193,203

KCWA 54,656

North Kern 0

SemiTropic 7,500

TOTAL 255,359

PRELIMINARY

SUBJECT TO REVISION

Item 8.2.b.

WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT

2020 WATER SUPPLY/DEMAND ESTIMATE

Below Normal

12/11/2019 W.Jones

State of California DEPARTMENT OF WATER RESOURCES California Natural Resources Agency CALIFORNIA STATE WATER PROJECT

NOTICE TO STATE WATER PROJECT CONTRACTORS

DWR 9625 (Rev. 3/12) Page 1 of 1

Date: DEC 2 2019

Number: 19-12

Subject: 2020 State Water Project Initial Allocation – 10 Percent

From: Original signed by Ted Craddock Acting Deputy Director, State Water Project Department of Water Resources

The Department of Water Resources (DWR) is initially approving 427,167 acre-feet (AF) of Table A water for the long-term State Water Project (SWP) contractors in 2020. SWP supplies are projected to meet 10 percent of most SWP contractors’ requests for Table A water, which total 4,172,786 AF. Attached is the initial 2020 SWP allocation table.

This initial allocation is made consistent with the long-term water supply contracts and public policy. DWR’s approval considered several factors including existing storage in SWP conservation reservoirs, SWP operational constraints such as the conditions of the Biological Opinions for Delta Smelt and Salmonids, and the Longfin Smelt Incidental Take Permit, and the 2020 contractor demands. DWR may revise the initial and subsequent allocations if warranted by the year’s developing hydrologic and water supply conditions.

DWR will use the current long-term SWP contractors’ 10 percent schedules that they submitted in October 2019 as part of their initial request, unless contractors submit updated schedules. DWR will send the approved monthly water delivery schedules to the long-term SWP contractors.

If you have any questions or need additional information, please contact Pedro Villalobos, Chief, State Water Project Analysis Office, at (916) 653-4313.

Attachment

2020 STATE WATER PROJECT INITIAL ALLOCATION (ACRE-FEET)

SWP CONTRACTORS TABLE A

(1)

INITIAL REQUEST

(2)

APPROVED ALLOCATION

(3)

PERCENT INITIAL

REQUEST APPROVED

(3)/(2) (4)

FEATHER RIVER County of Butte 27,500 27,500 4,000 15% Plumas County FC&WCD 2,700 2,700 270 10% City of Yuba City 9,600 9,600 1,920 20%

Subtotal 39,800 39,800 6,190 NORTH BAY

Napa County FC&WCD 29,025 29,025 5,805 20% Solano County WA 47,756 47,756 9,551 20%

Subtotal 76,781 76,781 15,356 SOUTH BAY

Alameda County FC&WCD, Zone 7 80,619 80,619 8,062 10% Alameda County WD 42,000 42,000 4,200 10% Santa Clara Valley WD 100,000 100,000 10,000 10%

Subtotal 222,619 222,619 22,262 SAN JOAQUIN VALLEY

Oak Flat WD 5,700 5,700 570 10% County of Kings 9,305 9,305 931 10% Dudley Ridge WD 41,350 41,350 4,135 10% Empire West Side ID 3,000 3,000 300 10% Kern County WA 982,730 982,730 98,273 10% Tulare Lake Basin WSD 87,471 87,471 8,747 10%

Subtotal 1,129,556 1,129,556 112,956 CENTRAL COASTAL

San Luis Obispo County FC&WCD 25,000 25,000 2,500 10% Santa Barbara County FC&WCD 45,486 45,486 4,549 10%

Subtotal 70,486 70,486 7,049 SOUTHERN CALIFORNIA

Antelope Valley-East Kern WA 144,844 144,844 14,484 10% Santa Clarita Valley WA 95,200 95,200 9,520 10% Coachella Valley WD 138,350 138,350 13,835 10% Crestline-Lake Arrowhead WA 5,800 5,800 580 10% Desert WA 55,750 55,750 5,575 10% Littlerock Creek ID 2,300 2,300 230 10% Metropolitan WDSC 1,911,500 1,911,500 191,150 10% Mojave WA 89,800 89,800 8,980 10% Palmdale WD 21,300 21,300 2,130 10% San Bernardino Valley MWD 102,600 102,600 10,260 10% San Gabriel Valley MWD 28,800 28,800 2,880 10% San Gorgonio Pass WA 17,300 17,300 1,730 10% Ventura County WPD 20,000 20,000 2,000 10%

Subtotal 2,633,544 2,633,544 263,354

TOTAL 4,172,786 4,172,786 427,167

SWPAO 12/2/2019

W H E E L E R R I D G E - M A R I C O P A W A T E R S T O R A G E D I S T R I C T Agenda Item 8.3.a.

MEMORANDUM TO: Board of Directors FROM: Wendy Jones DATE: December 11, 2019 SUBJECT: Second Priority Sub-Account Program Agreement As requested during our November 13, 2019 regular board meeting, all Board members were provided a word version copy of the Second Priority Sub-Account Program Agreement draft by email on November 22, 2019 for review and comment. Director Reiter provided suggestions, some of which were incorporated into the Agreement. No changes were made to Exhibit A. The revised final draft of the Second Priority Sub-Account Program Agreement is attached along with the November 13, 2019 Board Memorandum. Recommendation. Absent other direction from the Board, the Engineer-Manager would authorize Staff to implement use of the Second Priority Sub-Account Program Agreement for all participating Water Users, including securing an Agreement from all previous and current participants.

W H E E L E R R I D G E - M A R I C O P A W A T E R S T O R A G E D I S T R I C T

Agenda Item 8.3.a.

MEMORANDUM


FROM: Wendy Jones

DATE: November 6, 2019

SUBJECT: Second Priority Sub-Account Program Agreement

At its December 13, 2017 regular board meeting, the Board adopted Resolution 2017-16

codifying Rule 12 which was subsequently ratified and included as Attachment A to the

Resolution now known as Rule 12 of the District’s recorded Rules and Regulations.

Since that ratification, District Staff and Counsel have collaborated to construct a Kern Water

Bank Second Priority Sub-Account Program Agreement (“Agreement”) taking into consideration

grower concerns, memoranda and discussion notes. Per the Board’s direction, for purposes of

this Agreement only, the text of Rule 12 has been supplemented with italic text and made a part

of this Agreement to provide discussion and explanation of certain provisions of Rule 12; the

supplemented italic text is not part of the ratified and recorded Rule 12 and in any conflict of

interpretation, this Agreement or the Rules and Regulations, as applicable, shall control.

2017 was the maiden year for our KWB Second Priority Banking program; activity was heavy at

the end of that year with multiple Water Users initiating banking requests. Without an

Agreement available to sign prior to banking in the program, Counsel and Staff developed the

following language for all Water Users to provide to the District in the interim:

Please confirm and acknowledge:

In the event a Water User begins recharging with the Kern Water Bank for Second

Priority Use in advance of the availability of the necessary Agreement with the District

for same, Water User hereby agrees to be bound by all terms of the impending

Agreement. Said Agreement will include, but may not be limited to, the additions to the

Rules and Regulations per that certain Attachment A attached to Board Resolution 2017-

16 unanimously passed by Wheeler Ridge-Maricopa Water Storage District's Board of

Directors at its regularly held Board Meeting December 13, 2017.”

Every Water User who has banked their supplies in the KWB Second Priority Banking program

has provided the District this acknowledgement. Currently we have 14 Water Users participating

with more than 14,000 acre-feet in the program.

Recommendation. Absent other direction from the Board, the Engineer-Manager would

authorize Staff to implement use of the Second Priority Sub-Account Program Agreement for all

participating Water Users, including securing an Agreement from all previous and current

participants.

Page 1 of 10

SECOND PRIORITY SUB-ACCOUNT PROGRAM AGREEMENT

This agreement (“Agreement”) concerning the Kern Water Bank Second Priority Sub-Account

Program is dated _______________________ and is between__________________________________,

a ________________________ ("Water User") and Wheeler Ridge-Maricopa Water Storage District, a

California water storage district ("WRMWSD" or “District”). Water User and District may be jointly

referred to herein as the “Parties” and referred to in the singular as a “Party.”

RECITALS

WHEREAS, a primary water management objective of the Kern Water Bank (“KWB”), which is

owned and operated by the Kern Water Bank Authority (“KWBA”), is to enhance water supplies of its

Member Entities (“Members”). The District is a Member of the KWBA, and KWBA Members have rights

to use the KWB for recharge and recovery on a first priority basis. In general, the KWB is used to store

water in the aquifer underlying the KWB during times of surplus and recover therefrom previously stored

water during times of shortage. Water from numerous sources are recharged in the KWB in cooperation

with water rights holders and the approval of necessary authorities. Such sources include, but may not be

limited to, the Kern River, the State Water Project, the Central Valley Project including the Friant-Kern

Canal, flood water and other sources that may be available from time to time.

WHEREAS, it is the policy of the District to manage the KWB for the benefit of all Water Users

on a first priority basis. As provided in Resolution No. 2017-16 adopted by the District’s Board of

Directors (“Board”) on December 13, 2017, including Exhibit “A” thereto as revised and ratified by the

Board at meeting on January 10, 2018, and the District’s Rules and Regulations for Distribution of Water

(as amended) (“Rules and Regulations”), to the extent the District is not using available KWB capacity

for recharge or recovery, the District's rights and access to the KWB may be used by District Water Users

as defined in Water Service Contracts executed by the District and its landowners (“Water Users”), on an

interruptible and non-dependable second priority basis, to recharge and recover supplies for use upon land

within the District for agricultural purposes, provided that each such Water User enters into an agreement

in a form acceptable to the District (“Second Priority Sub-Account Program” or “Program”). This

Agreement represents such agreement for the Program.

WHEREAS, the Program is addressed in Rule 12 of the current Rules. While the Rules are subject

to change and modification from time to time, Exhibit “A” to Attachment A hereto is intended to set forth

both the current language of Rule 12 plus italic text that, although not part of said rule, for convenience

further discusses and explains portions of Rule 12’s language based on circumstances existing when that

language was adopted by the Board as provided above. In the event of a conflict between the italic text,

and anything in this Agreement or the Rules, then the provisions of this Agreement or the Rules, as

applicable, shall control.

WHEREAS, the District’s Board approved the Second Priority Sub-Account Program in order to

immediately optimize opportunity for Water Users participation therein.

WHEREAS, it is the intent of the Second Priority Sub-Account Program to make available banking

capacity via Second Priority Bank Accounts to conserve for beneficial uses other water supplies Water

Users may have available and to help mitigate shortages.

WHEREAS, on or about December 27, 2017, in light of then-prevailing surplus water condition

in lieu of an impending agreement as referenced above which was being developed at the time, a written

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interim acknowledgement and acceptance of terms including Exhibit A to Attachment A thereto

(“Acknowledgement and Acceptance”) was provided to all interested Second Priority Sub-Account

Program participants, and Water User executed or otherwise agreed to be bound by the same. This

Agreement is to formalize and supersedes each such Acknowledgement and Acceptance.

Now, Therefore, District and Water User agree as follows:

1. USE AND SCHEDULING OF SECOND PRIORITY

Water User’s priority to use of the KWB is at all times subject and secondary to the District’s rights to use

the KWB on a first priority basis, including, but not limited to, the District’s first priority rights as they

are defined in the First Amended and Restated Joint Powers Agreement for the Kern Water Bank Authority

(as amended) (“JPA”) and the KWBA’s Operating Rules and Regulations. Use of the KWB by Water

User may be superseded by the District at any time in its discretion.

Water User may request to recharge and recover supplies, at District’s discretion, within the KWB for

subsequent delivery to and use in-District only. It is Water User’s sole responsibility to determine whether

and when to request use of the KWB, and that Water User is not entitled to receive from the District, and

may not rely upon, any notice or advice that the District may in its discretion chose to provide regarding

possible use of the KWB on a second priority basis. District is not obligated to deliver notice of spill risk,

Water Users’ opportunity to recharge, recover or convey water to the KWB or District’s own banking

plans. All Water User requests to recharge, recover or convey water shall be in writing in a form

acceptable to the District and shall be directed to the Water Resources Manager ("WRM"), or his/her

Designee, at least five (5) days in advance, unless the WRM can in its discretion accommodate the request

with less notice without increasing costs or adversely impacting water schedules for other Water Users.

District’s consideration of requests includes its discretion to take into account what is feasible and

practical. In certain circumstances, the District may in its discretion deny requests due to reasons beyond

the District’s control, including but not limited to, reasons of maintenance of the KWB, or due to scale,

e.g. the Water User order is too small for recharge or recovery, or there is not enough time to implement

the request. In some cases, in the District’s discretion, it may be possible or desirable to accomplish said

request by exchange rather than direct recharge or recovery. Furthermore, requests even though initially

accommodated by the District may not be fulfilled in whole or part due to factors beyond the District’s

control, including but not limited to, subsequent reduction in capacity in facilities, requests of others,

change in circumstances, inaccurate or insufficient information, and inadvertent errors. The District shall

bear no responsibility for and reserves the right to make at its discretion reasonable adjustments to account

for any such factors,

Water User’s right to use the KWB on a second priority basis is at all times subject to all the same existing

and future restrictions, requirements and obligations to which the District and the KWBA, as applicable,

are subject, including but not limited to, those in the KWBA JPA, KWB Memorandum Of Understanding,

KWBA Operating Rules and Regulations, mitigation requirements applicable to the KWB, and the

policies of the KWBA, including without limitation water banking losses and allocation of available

capacity.

2. ELIGIBLE SECOND PRIORITY RECHARGE WATER TYPES

Water User may recharge specific water types as established by the Board. However, User Input supplies

Page 3 of 10

may not be banked in the Program, and Water User also may not use the KWB in any given year to

recharge supplies that the District recovered from the KWB or other water banking project during that

same year. The Board shall from time to time establish which water types and quantities are eligible for

second priority recharge to mitigate local groundwater impacts or for other purposes. It is the District’s

intent to manage second priority use to avoid increasing local groundwater overdraft consistent with the

District’s Project purposes and the Sustainable Groundwater Management Act, Water Code § 10720 et

seq. (“SGMA”).

3. TRANSFER OF SECOND PRIORITY BANK ACCOUNT OR CAPACITY

A Second Priority Bank Account participant may request permission to lease or otherwise contract for

use of Water Users’ capacity provided that the District has no contractual duty or obligation towards

such lessees or contracting parties, and Water User may also request transfer of all or part of its Second

Priority Bank Account (as defined below) to other Water Users (“Transferred Account”), provided

further that the District shall not involve itself with any disputes regarding any such arrangement,

including but not limited to the rights of a landowner, Water User or others thereunder, nor any disputes

regarding continuation of service thereunder, nor any dispute regarding payment of accounts conveyed

or for capacity leased or contracted. Water User and any and all transferees, lessees or contracting

parties of Water User desiring to utilize the District’s facilities for any such purposes shall defend,

indemnify and protect and hold the District, and its officers, directors, employees and agents, harmless

from any such dispute including any and all claims, causes of action, debts, demands, obligations,

liabilities, losses, costs and expenses arising from or related to any such dispute and as further provided

in paragraph 9.5. Said water transfer, lease or contract request must have prior District approval pursuant

to a form approved by the District, which may include prior entry into an assumption or other agreement

between District, Water User and/or the transferee, lessee or contracting parties, as applicable, regarding

the arrangement if requested by District. Water User’s transferees, lessees and contracting parties shall

be subject to and bound by the terms of this Agreement regardless of whether they have entered into a

separate assumption or other agreement with the District. Notwithstanding the terms and conditions of

any transfer, lease or contract between Water User and such parties, absent a written release from the

District, Water User shall remain jointly and severally responsible along with such parties for full

compliance with this Agreement including, but not limited to, the making of payments due District for

use of second priority rights hereunder. Second priority rights of transferees, lessees and contracting

parties of Water User as provided in this paragraph 3 hereof are subject to, derivative of and no greater

than Water User’s rights under this Agreement. Thus, for example, water banked in a Transferred

Account, or banked in capacity leased or otherwise contracted for, must be still be delivered to and used

in-District only.

4. CAPACITY RIGHTS

With respect to the Program, second priority use of recharge and recovery capacity as well as storage

capacity (should there be a limitation) of the KWB by Water Users shall be allocated in proportion to

Water Users' Contract Amounts of Water (“CAW”).

Water User Second Priority Bank Accounts may be limited as established by the Board from time to

time. Such Accounts are subject to partial or complete loss in favor of the District due to KWBA policy

or restrictions, requirements and obligations applicable to KWBA or the KWB, or because of the

District’s loss of recharge capability due to Water User(s) second priority recharge. Water User’s loss

of Second Priority Bank Accounts to the District may receive some compensation at rates established by

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the Board which rates may be less than Water User’s costs; provided, however, in the absence of the

Board establishing such rates Water User shall not be entitled to any compensation or other remedy in

the event of such loss. The District shall from time to time notify Water Users of the quantities of water

stored in the KWB so Water Users can periodically assess their risk of loss of said Accounts.

5. ACCOUNTING

District shall record all Water User Second Priority use by maintaining an itemized accounting of

activities thereof including, but not limited to, adjustments for losses due to conveyance, recharge,

recovery, mitigation, overdraft correction, and such other losses as may occur. District will provide such

an accounting to Water User from time to time, the results of which are subject to KWB or KCWA

reconciliations that may result in more or less water banked than originally requested , estimated, planned

or conveyed due to actual conditions during recharge and recovery operations. Such accounting shall

identify the quantity of water available to Water User for second priority recovery (the "Second Priority

Bank Account" or "SPBA"). Water User understands and agrees that accounting estimates are subject to

change pending the final accounting of the District and necessary third parties including the KWBA and

KCWA, as applicable. Recovery of supplies in excess of Water User’s Second Priority Bank Account

balance is not allowed.

6. COSTS

Water User shall pay all costs including, but not limited to, conveyance, recharge, recovery and any

mitigation costs, as well as costs incurred for transfers, adjustments and administrative fees, all as they

relate to Water User's Second Priority Bank Account (including Transferred Accounts). These costs

may include District, KWBA and/or other third-party charges. In addition, the Board may establish and

modify from time to time an administrative fee to recover additional costs and staff time the District

expends to administer the Program, to be charged at the time water is recharged or recovered.

7. PAYMENT

All costs billed by the District to Water User under this Agreement shall be timely paid. The District may

require advance payment of recovery charges.

In the event that any charge hereunder or any obligation of Water User arising from this Agreement

remains unpaid for a period of the thirty (30) days after it becomes due and payable, it shall thereupon

become delinquent and a penalty of 10% shall be added thereto, and it shall thereafter bear interest at the

rate of 12% per annum. The District shall have the same remedies in event of default as provided for

under the Water Service Contract(s) affecting the lands that are served with such water under said

contract(s) and/or held by Water User within the Surface Water Service Area (“SWSA”), including, but

not limited to, initiating suit for collection or sale of the lands. As an additional remedy, upon providing

at least 30 days’ notice and opportunity to cure, the District may terminate this Agreement and in such

event the Water User shall be deemed to have forfeited its SPBA (including Transferred Accounts as

provided in paragraph 3 hereof) to the District to cure the delinquency, without compensation of any kind.

Water User’s right to use the KWB on a second priority basis, as provided herein, including the rights of

others as provided in paragraph 3 hereof, is contingent upon Water User being in compliance with the

terms and conditions of this Agreement and any Water Service Contract, including not limited to being

current and not delinquent in the payment of charges or assessments due under this Agreement and any

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Water Service Contract.

In addition to and not as a limitation on the other remedies specified herein, the District shall have the

right to suspend Water User’s right (and the rights of others as provided in paragraph 3 hereof) to recharge

and/or recover water from the KWB on a second priority basis until Water User cures or causes the cure

any non-compliance. However, termination of this Agreement or suspension of said rights pursuant to

this Agreement shall not relieve Water User of any obligations incurred under the terms of this Agreement.

The remedies available to the District under this Agreement are in addition to and not a limitation upon

any other remedies that may be available to the District including pursuant to contract, law and equity.

8. TERM

The Initial Term of this Agreement shall be until December 31, 2020, with five-year renewals thereafter

upon request of the Water User and concurrence by the District in its discretion. The District reserves

the right to modify this Agreement for any renewal period. If a Water User finds the modified

Agreement unacceptable, the Water User has a five-year period to either recover their entire SPBA

(including Transferred Account) balance or transfer said account to another Water User. Until such

time as that account has been recovered or transferred, the Water User would be subject to the terms of

the current Agreement. If the Account has not been transferred or recovered, the account will forfeit to

the District, without compensation of any kind, upon the expiration of said five-year period.

9. MISCELLANEOUS

9.1. RULES AND REGULATIONS

This Agreement shall also be subject to all provisions of the District's Rules and Regulations and the

District's applicable policies, as they may be amended or modified from time to time.

9.2. NOTICES

Any notice and communication required or permitted to be given pursuant to this Agreement by the Parties

shall be given in writing and shall be delivered during working hours by personal delivery, by electronic

mail to the parties at the email address specified in this Agreement, by facsimile to the parties’ attention

specified in this Agreement, by certified mail return receipt requested and/or by commercial overnight

courier that provides a receipt, and such notices shall be addressed as follows:

WHEELER RIDGE-MARICOPA WSD WATER USER

ATTN: Water Resources Manager _____________________________

12109 Highway 166 _____________________________

Bakersfield, CA 93313-9630 _____________________________

Facsimile: 661.858-2643 _____________________________

Email [email protected] _____________________________

or to such other address as either party may from time to time specify in writing to the other party under

this Notice provision. Notices shall be effective upon delivery as can be evidenced in all methods

hereunder.

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9.3. MULTIPLE ORIGINALS

This Agreement may be executed in counterparts, each of which shall be deemed an original.

9.4. TITLES

Section titles are for convenience of reference only and do not form a part of this Agreement.

9.5. INDEMNIFICATION

Water User shall indemnify, defend, protect and hold harmless the District and the Kern Water Bank

Authority and it Members, collectively, and their respective directors, officers, agents, employees, and

agents, and each of them, from and against any and all claims, causes of action, debts, demands,

obligations, liabilities, losses, costs and expenses (collectively a "Claim") and shall assume responsibility

for payment of any settlements, judgments, costs and attorney fees, arising out of or resulting from the

following:

a) any matter related to the source of the water which Water User acquired to recharge under this

Agreement or the manner or place for which any water recovered under this Agreement is used; and

b) any of the activities under the control of the Water User and related to this Agreement, the

District, the KWB and/or the Kern Water Bank Authority, including but not limited to the arrangements,

disputes and other matters referred to in paragraph 3 hereof.

9.6. SUCCESSORS.

The provisions of this Agreement shall apply to and bind the successors and assigns of the Parties hereto,

provided that Water User many not transfer or assign the rights and duties hereunder, except as provided

in paragraph 3 hereof. Water User shall provide a copy of this agreement to any and all parties that Water

User enters into a transfer, lease, or contract arrangement with as provided in paragraph 3 hereof.

9.7. NO WARRANTY/ASSUMPTION OF RISK

Water User understands and acknowledges that there is the following pending litigation concerning the

KWB and other related matters: (1) Central Delta Water Agency et al. v. California Department of Water

Resources et al. (Sacramento County Superior Court, Case No. 34-2010-80000561; Fifth Appellate

District, Case No. C078249); (2) Central Delta Water Agency et al. v. Kern County Water Agency et al.

(Sacramento County Superior Court, Case No. 34-2010-80000719); (3) Center for Food Safety et al. v.

California Department of Water Resources et al. (Sacramento County Superior Court, Case No. 34-2016-

80002469; Fifth Appellate District, Case No. C086215); (4) Buena Vista Water Storage Dist. v. Kern

Water Bank Authority, et al. (Kern County Superior Court, Case No. BCV-19-100122; and (4)

proceedings before the State Water Resources Control Board with regard to KWBA’s and others’

applications to appropriate Kern River water and related matters including complaints. The KWBA and

in some cases its Members are parties to the above matters, and one or more of such matters, among things,

seeks to invalidate KWBA’s title to the KWB lands and the transfer thereof in 1996 from the California

Department of Water Resources to Kern County Water Agency and then to KWBA.

The District makes no express or implied predictions, representations or warranties as to the outcome of

said litigation or proceedings, or otherwise. Water User and its transferees (i.e., those with a Transferred

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Account or which have the ability to use the KWB by lease, contract or other arrangement with Water

User as provided in paragraph 3 hereof) expressly assume the risk that the outcome of said litigation and

proceedings or other actions or circumstances beyond the control of the District may adversely affect or

even terminate Water User’s and/or said transferees’ ability to recharge and/or recover water banked in

the KWB and SPBA (including any Transferred Account). In such event, however unlikely, Water User

for and on behalf of itself and any such transferee covenants that they will not assert any Claim or

otherwise seek any recourse or remedy whatsoever as against or from the District or the KWBA or its

Members.

9.8. MODIFICATION AND WAIVER

This Agreement may not be modified or amended, nor may any right or obligation set forth herein be

waived, except in a writing by the Parties. A waiver as to any particular term shall not operate as a waiver

as to any other term.

9.9. AUTHORSHIP

This Agreement shall be deemed to have been mutually preapproved by the Parties with the advice of

counsel and shall not be construed for or against any of them solely by the reason of authorship.

9.10. GOVERNING LAW AND VENUE

This Agreement shall be governed, enforced and construed under the laws of the State of California, and

venue for any disputes or disagreements under this Agreement shall be the County of Kern, State of

California.

9.11. SIGNATORIES

Each undersigned representative of the Parties to this Agreement represents and warrants that he/she is

fully authorized to enter in this Agreement and to execute and legally bind such Party to it.

DATE ____________________________ DATE ___________________________

WHEELER RIDGE-MARICOPA WATER USER

WATER STORAGE DISTRICT, a

California Water Storage District _________________________________

__________________________________ _________________________________

BY: Sheridan Nicholas BY: ______________________________

ITS: Engineer-Manager ITS: ______________________________

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EXHIBIT A

ATTACHMENT "A"

12. SECOND PRIORITY USE OF KERN WATER BANK

It is the policy of the District to manage the Kern Water Bank (KWB) for the benefit of all Water

Users on a first priority basis. To the extent the District is not using KWB recharge or recovery

capacity for said benefit, the District’s rights and access to the KWB may be used by Water Users, on

a second priority basis, to recharge and recover supplies for use upon land within the District for

agricultural purposes, provided that Water User(s) enter into an agreement in a form provided by the

District which shall include but not be limited to the following provisions:

a. Water User priority to use of the KWB is secondary to the District. Use of the KWB by

Water User may be superseded by the District at any time.

Water User would only be able to utilize the KWB if/when the District is not utilizing its

capacity. Water User operations would cease if/when the District wishes to utilize its

capacity for any reason.

b. Water User may request to recharge and recover supplies, at District’s discretion, within the

KWB for in-District use only. District’s consideration of requests shall take into account what

is feasible and practical. Such requests shall be in writing in a form acceptable to the District.

Recovery of supplies in excess of Water User’s Second Priority Bank Account balance are not

allowed.

Water User shall submit request for recharge/recovery to District, which has the discretion to

refuse such request provided such request shall not be unreasonably refused. In certain

circumstances, the District may deny requests due to reasons beyond the District’s control,

including but not limited to reasons of maintenance of the KWB, or due to scale, e.g. the

Water User order is too small for recharge/recovery, or there is not enough time to perform the

request. In some cases, it may possible or desirable to accomplish said request by exchange

rather than direct recharge or recovery.

c. Water User may recharge specific water types as established by the Board. User Input supplies

may not be banked. The Board shall from time to time establish which water types and

quantities are eligible for second priority recharge to mitigate local groundwater impacts or for

other purposes. It is the District’s intent to manage second priority use to avoid increasing

local groundwater overdraft consistent with the District Project purposes and the Sustainable

Groundwater Management Act.

The provision is to preclude Water User from pumping groundwater in-District, and then

recharging supplies in the KWB in the same year. This action could increase groundwater

overdraft in-District. In addition, the District would not want the same to occur with its own

recovery operations; for instance, Water User banking Supplemental supplies that were

procured through District pumping. As a general matter, subject to Board modification, only

imported water supplies are expected to be eligible for second priority recharge.

Page 9 of 10

d. District shall record all second priority use by Water User, maintain an accounting thereof,

make adjustments thereto for losses due to conveyance, recharge, recovery, mitigation,

overdraft correction, and such other losses as may occur, and provide an accounting to

Water User from time to time. Such accounting shall identify the quantity of water available

to Water User for second priority recovery (the Second Priority Bank Account).

e. Water User may transfer all or part of its Second Priority Bank Account to other Water Users;

provided such transfer shall not be made until Water User provides written notice thereof to

the District on a form provided therefor, and further provided the District shall not involve

itself with any disputes regarding the right of a landowner/Water User or others, nor any

disputes regarding continuation of such service, nor any dispute regarding payment of

accounts conveyed, and any landowner/Water User desiring to utilize the District’s facilities

for such purposes shall defend, indemnify and hold the District harmless from any such claim.

Transferred Accounts must still be delivered in-District.

f. Water User payment for second priority use of the Kern Water Bank shall include any and all

conveyance, mitigation, delivery, recharge and/or recovery costs, plus any additional fees as

established by the Board. Payment of all fees and charges due under the agreement, including

delinquencies under the agreement, would be on the same terms and conditions, as the Water

User Water Service Contract. The Board may establish a procedure for forfeiture of the

Second Priority Bank Account to cure delinquency in payments not timely made and due

under the agreement.

At its December 2017 meeting, the Board considered ‘additional fees established by the

Board’. It decided said fees will include an administrative fee established by the Board to

recover the District’s administrative costs of the Second Priority Bank Account program to be

billed and paid when supplies are recharged and/or recovered. It decided said fees will not

include a storage charge or a capital charge. It did not decide on (a) specific procedures for

billing of costs and fees to Water Users, (b) whether such costs and fees would be subject to a

final accounting adjustment, or (c) whether a replacement cost should be charged upon

recovery.

g. Water User is subject to all the same restrictions and obligations to which the District is

subject in the KWB Joint Powers Agreement, KWB Memorandum Of Understanding, and

the policies of the Kern Water Bank Authority, including but not limited to water banking

losses.

h. Water User Second Priority Bank Accounts may be limited as established by the Board. Such

Accounts are subject to partial or complete loss in favor of the District due to Kern Water

Bank Authority policy, or because of the District’s loss of recharge capability due to Water

User(s) second priority recharge. Water User loss of Second Priority Bank Accounts to the

District may receive some compensation at rates established by the Board which rates may be

less than Water User’s costs. The District shall periodically notify Water Users of the

quantities of water stored in the KWB so Water Users can periodically assess their risk of loss

of said Accounts.

Second priority sub-accounts would ‘spill’ under a prorated basis of CAW of those Water

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Users who recharge.

Example 1 – recharge capacity: This would occur, for instance, if/when Water User(s) utilize

full capacity of the KWB, and then large amounts of supplies become available to the District

and/or KWB participants. Under KWB policy, those that recharged just prior to full

utilization by KWB Participants could lose some of their banked supplies because their

recharge activities impacted the ability of KWB Participants to recharge when supplies

became available.

Example 2 – storage capacity: This would occur if Water User second priority use causes the

District share of storage to exceed the District’s 24.03% share of KWB storage, and this

impacts other KWB participants. The KWB policies would result in a consequent reduction in

the District’s recharged quantity and said reduction would be first applied to Water User

Second Priority Bank Accounts before any reduction is applied to the District’s first priority

account maintained for the benefit of all Water Users.

At its December 2017 meeting, the Board retained the option to limit the volumes of Second

Priority Bank Accounts but decided there was no reason at that time to set an upper limit.

i. Second priority use of recharge and recovery capacity of the Kern Water Bank by Water

Users shall be allocated in proportion to Water Users’ Contract Amounts of Water.

j. The initial term of the agreement shall be until December 31, 2020, with 5-year renewals

thereafter. The District reserves the right to modify the agreement during the renewal period.

If a Water User finds the modified contract unacceptable, the Water User has a five-year

period to either recover their Second Priority Bank Account or transfer said Account to

another Water User. Until such time as that Account has been recovered or transferred, the

Water User would be subject to the terms of the current agreement. If the Account has not

been transferred or recovered, the Account will forfeit to the District.

For instance, Water User “A” recharges 900 acre-feet in 2019 under the terms of the 2017

Agreement. The District decides to modify some of the terms of the Agreement for the period

2021-2025. “A” has the option to either sign the new agreement, or transfer or recover the

900 acre-feet account by December 31, 2025. “A” decides that the terms of the new

agreement are not acceptable, but between 2021 and 2025 “A” is still subject to the terms of

the new 2021 agreement. If “A” has not recovered/transferred the 900 acre-foot account by

December 31, 2025, the 900 acre-feet forfeits to the District with no recompense to “A”.


Agenda Item 8.3.b.

MEMORANDUM


FROM: Wendy Jones


SUBJECT: November Board Meeting Agenda Item 8.3.b.

Further Administrative Review of Kern Water Bank Capacity Redistribution – February

2019

At its regular Board meeting held November 14, 2019, the February 2019 KWB Capacity Redistribution

was discussed at length. That Agenda Item 8.3.b. was brought to the Board at the request of Maricopa

Orchards and Sun Pacific Farming after adjustments were made to the September 2019 water ledgers of the

four affected participants; Sun Pacific Farming, Maricopa Orchards, Wonderful Citrus and Tejon Ranch

Co.

A motion was made by Director Reiter and seconded by Director Marin directing Staff to revisit the capacity

distribution and provide the Board with one or more alternate allocation options that might be considered

equitable. The motion also included Counsel direction to review and if deemed necessary insert/revise

language in our KWB Second Priority Banking Agreement draft (November Board Meeting Agenda Item

8.3.a.) that may avoid similar disputes in the future. The motion passed with Directors Reiter, Marin,

Richardson, Valpredo, Atkinson and Blaine voting in the affirmative and Director Mettler voting no.

Director Fry was absent.

Initial estimates were the Second Priority participants had banked 5,429 acre-feet over the six-day period

from February 7 through February 12. The KWB Canal capacity issues caused a 1,066 acre-feet reduction

for the SPBA’s resulting in an estimate of 4,363 acre-feet banked during that period.

Staff has reviewed the current allocation of 4,363 acre-feet and is presenting three (3) options on page 2 of

this memorandum, for consideration by the Board, along with the following Staff recommendation.

Recommendation. Staff recommends that the Board support Staff’s previous review, analysis,

determinations and adjustments, without revision (herein Option #2), as Staff has determined this approach

to be reasonable and the most fair and equitable to all parties, including the District and its Water Users

overall.

OPTIONS

1. Only KWB Canal Adjustments. No adjustments to capacity re-distribution regarding the IT issue

for emails not received.

2. No Change. Current adjusted and unrevised Staff determination as presented by email to the four

participants on September 10, 2019. This variance column reference is comparing what had been

banked with KWB Canal adjustments (Option #1 Total AF).

3. Director Reiter’s suggestion for 50% reduction to the accounts (as stated in Option #2/Staff

determination) for those not receiving the initial emails. Modification to capacity distribution for

a 50% capacity removal from each of Wonderful Citrus and Tejon Ranch Co. and re-distribute

that capacity, pro-rata using CAW, to Sun Pacific Farming and Maricopa Orchards.

REVISED DELIVERY SUMMARY WITH KWB CANAL ADJUSTMENTS

SP MOC

SP SP MOC SP MOC SP MOC SP MOC WNDFL

DATE OF TARGET TOTAL

WATER USER REQUEST AF 7-Feb 8-Feb 9-Feb 10-Feb 11-Feb 12-Feb AF

Sun Pacific 6-Feb 4,500 703 344 345 328 414 228 2,361

MOC 7-Feb 2,000 384 385 366 462 254 1,851

Wonderful 11-Feb 1,592 151 151

8,092 703 728 729 694 876 633 4,363

TRC NOT INCLUDED BECAUSE THEIR REQUEST DATE, 2/12, CONFLICTED WITH WRM'S RECHARGE START DATE, 2/13.

REVISED ESTIMATED DELIVERY SUMMARY - KWB SECOND PRIORITY RECHARGE, EMAIL ISSUES

SP MOC SP MOC SP MOC SP MOC SP MOC VARIANCE

DATE OF TARGET SP WNDFL TRC WNDFL TRC WNDFL TRC WNDFL TRC WNDFL TOTAL TO ORIGINAL

WATER USER REQUEST AF 7-Feb 8-Feb 9-Feb 10-Feb 11-Feb 12-Feb AF ESTIMATE

Sun Pacific 2/6 4,500 703 262 222 211 267 193 1,857 (504)

MOC 2/7 2,000 292 248 236 298 215 1,289 (562)

Wonderful 2/11 1,592 174 148 140 177 128 768 616

Tejon Ranch Co 2/12 500 112 106 134 97 450 450

8,592 703 728 729 694 876 633 4,363 -

REVISED CAPACITY ADJUSTMENT SP MOC SP MOC SP MOC SP MOC SP MOC

as per NOV 13 2019 BOARD MTNG SP WNDFL TRC WNDFL TRC WNDFL TRC WNDFL TRC WNDFL VARIANCE

TARGET TOTAL TO ORIGINAL

AF 7-Feb 8-Feb 9-Feb 10-Feb 11-Feb 12-Feb AF ESTIMATE

Sun Pacific 2/6 4,500 703 303 283 270 340 246 2,145 (216)

MOC 2/7 2,000 338 316 301 380 275 1,610 (241)

Wonderful 2/11 1,592 87 74 70 89 64 384 232

Tejon Ranch Co 2/12 500 56 53 67 49 225 225

8,592 703 728 729 694 876 633 4,363 -


Agenda Item 8.4a

MEMORANDUM


FROM: Sheridan Nicholas


SUBJECT: Consider Approval of District’s Management Area Plan of KGA GSP

On September 16th, 2014, the Sustainable Groundwater Management Act (SGMA) was enactedwhose primary purpose is to achieve and/or maintain sustainability within the state’s high andmedium priority groundwater basins. As such, SGMA empowers certain local agencies to formGroundwater Sustainability Agencies (GSAs) whose purpose is to manage basins sustainablythrough the development and implementation of Groundwater Sustainability Plans (GSPs).

The Kern County Subbasin of the San Joaquin Valley Groundwater Basin is one of 21 basins andsubbasins identified by the DWR as being critically overdrafted, a designation that triggers anaccelerated timetable for GSP development by 2020 and achievement of sustainability by 2040.

The Kern Groundwater Authority (KGA) GSA, of which the District is a member, is the largestof the 11 GSAs that have been formed within the Kern Subbasin. The KGA GSA was formed in2017 upon adoption of a Joint Powers Agreement by all members and is governed by a 16-member Board of Directors. The KGA GSA is preparing an “Umbrella GSP” that, in addition toproviding content for the entire KGA GSA area, includes individual Management Area Plans thatcontain more detailed information for each member agency’s service area. Areas of the KernSubbasin that are outside of the KGA GSA GSP are covered under five separate, coordinatedGSPs that have been developed by other GSAs.

The District prepared a Management Area Plan for those portions of the District within the KernSubbasin excluding the area (approximately 2,809 acres) also overlain by the West Kern WaterDistrict. This Draft Plan has been available to the Board and District landowners via the Districtwebsite.

Each of the member agencies of the KGA submitted their respective Management Area Plan tothe KGA Board for inclusion in the KGA GSP on August 28. After which a 90 due commentperiod ensued. The KGA received comment letters from the following groups/organizations:Leadership Council for Justice & Accountability, The Nature Conservancy, CaliforniaDepartment of Fish and Wildlife, Chevron, plus a number of letters from various landownerswhich were very similar in nature.

The District received specific comments from Chevron, Farmland Reserve and WonderfulCitrus/Orchards. Each of these comments/letters are attached. Chevron’s comments were

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technical in nature, while the Farmland and Wonderful comments mirrored the landownercomments sent to the KGA. Responses to said comments are addressed in the Plan update.

Each of the member agencies of the KGA, after approval by their governing body, must submittheir updated Management Area Plan to the KGA Board for inclusion in the KGA GSP. Each ofthese Management Area Plans will be either accepted or rejected individually by the KGA Boardat its regular meeting on December 18.

Once the Management Area Plans have been submitted and accepted by the KGA Board, theentire GSP will be prepared and submitted to the KGA Board for approval at its January 15, 2019Board meeting. It will then be submitted to the Department of Water Resources, where the planwill be available for public comment for at least 60 days.

Recommendation: It is recommended the Board approve the attached Resolution No. 19-XXApproving Management Area Plan for Wheeler Ridge-Maricopa Water Storage DistrictManagement Area for submission to the Kern Groundwater Authority GroundwaterSustainability Plan.

S:\Management\Shared_AA\Board Mailing DEC 11, 2019\WRM_Memo_2019_Approval_District_KGA_MAP.wpd

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From: Moehnke, Janie <[email protected]> Sent: Tuesday, November 19, 2019, 7:15 AM To: [email protected]; Patricia Poire Subject: WHEELER RIDGE MARICOPA WATER STORAGE DISTRICT - SGMA GSP

Good morning. Chevron is providing the following comments in regards to Wheeler Ridge Maricopa Water Storage District’s GSP. These comments are directed at better defining the bottom of the basin in its GSP.

• An aquifer may not be suitable for beneficial use if: a) is not currently serving as a source of drinking water, b) it has commercially producible minerals or hydrocarbons, or c) it is not expected to supply a public water system and d) is either economically or technologically infeasible for treatment or recovery

now or in the future for domestic, agricultural, or industrial use.

• The purpose of this plan is not to exempt aquifers, nor is it to define the maximum depth or water quality concentration at which groundwater is economically recoverable or treatable now or in the future. However, by applying the criteria of 40 CFR §144.3 and 40 CFR §146.4, active oil and gas aquifers and exempted aquifers are not a part of the groundwater basin for beneficial use. As described above, the following, whichever is shallowest, are the lateral and vertical boundaries of the groundwater Subbasin: a) depth to producible minerals or hydrocarbons or primacy productive limits, b) depth to exempted aquifers, c) depth that makes recovery of water for domestic, commercial, or industrial

purposes no longer economically or technologically feasible, or d) the depth at which groundwater cannot now or in the future serve as a source

of drinking water.

• For example, water bearing zones below the depth to producible hydrocarbons are not within the groundwater basin; likewise, water bearing zones below an exempted aquifer are not within the groundwater basin.

Please let me know if you have any questions or need further explanation. Respectfully, Janie Moehnke Agriculture, Surface Land & Water Representative San Joaquin Valley Land Division Chevron North America Exploration and Production Company 9525 Camino Media (P.O. Box 6) Bakersfield, CA 93311 (93302) Tel 661 654-7071 Fax 661 654-7392 E-mail: [email protected] This message and any documents attached are intended only for the use of the addressee(s) and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, or the person responsible for delivering it to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of it, or the taking of any action in reliance on it, is strictly prohibited. If you have received this communication in error, please call me immediately at (661) 654-7071 to arrange for its return. Thank you!

mailto:[email protected]



6801 East Lerdo Highway, Shafter, California 93263 · 661.399.4456 · 661.399.1735 1701 South Lexington Street, Delano, California 93215 · 661.720.2400 · Fax 661.720.2402

November 27, 2019 Sheridan Nicholas Wheeler Ridge-Maricopa Water Storage District 12109 Highway 166 Bakersfield, CA 93313 VIA EMAIL: [email protected] Re: Comments on Draft Kern Groundwater Authority Umbrella Groundwater

Sustainability Plan and Wheeler Ridge-Maricopa Management Area Plan Dear Mr. Nicholas and Board of Directors, Wonderful Orchards LLC and Wonderful Citrus LLC (collectively, “Wonderful”) appreciate all the hard work that has gone into preparing the draft Groundwater Sustainability Plan (“Umbrella GSP”) and Management Area Plans (“MAPs”) by the Kern Groundwater Authority (“KGA”) and its member agencies (“Members”) including Wheeler Ridge-Maricopa Water Storage District. Wonderful, and our related entities, farm and process almonds, pistachios, various citrus varietals, pomegranates and nursery stock in Central California, including Kern County. As a major agricultural entity in the Central Valley, we understand just how important it is to formulate a GSP that meets the sustainability needs of the groundwater basin well into the future. In order to best execute the GSP’s goal to achieve sustainability by 2040, we encourage all GSAs and Members in the subbasin to initiate stakeholder-driven processes and to work together cooperatively to develop coordinated, subbasin-wide management actions and implementation strategies. To that end, we request that the following comments be considered prior to the Umbrella GSP and MAPs being finalized and implemented. Quantification of Native Yield1 It is imperative that the final GSP properly address the quantification of native yield. The GSPs, management areas, and other planning units in the subbasin should utilize coordinated methods of determining supply sources for native yield, quantifying the native yield, and accounting for it in individual MAPs’ water budgets. Unless there are specific hydrogeologic conditions that differentiate certain portions of the basin from the basin at-large (such as a fault line or barrier to groundwater flow), native yield should be considered a basin-wide resource. For example, a district or pumper located adjacent to the foothills does not necessarily have a superior claim to native yield over someone located in the center of the basin just because they 1 Native yield as defined in Section 4.2.1 of Appendix J to the GSP.

2

are geographically closer to the source of mountain front recharge. Similarly, a district or pumper located in a cone of depression does not necessarily have a superior claim to native yield just because groundwater is flowing toward them. Surface water entering the groundwater via seepage in natural channels, including the Kern River and small streams, may be attributable to the native yield depending upon the circumstances of that seepage. A thorough technical and legal analysis is necessary to determine appropriate sources contributing to the native yield and to quantify these supplies. Allocation of Native Yield In addition to a clear definition of native yield, the final GSP must also include a thorough description of how to calculate the allocation of native yield. Currently, the GSP references native yield in terms of acre-feet per gross acre for water budget purposes. Appendix J of the GSP indicates the subbasin native yield is approximately 0.144 acre-feet per acre. It is our understanding that subsequent to the release of the draft GSP, all MAPs and other GSPs in the basin agreed to utilize the same number for their water budgets. If referencing native yield this way is necessary, the GSP should clarify that it is for initial water budget purposes ONLY, is non-precedent setting, and is not a determination of individual landowner allocations or groundwater rights. Alternatively, in the 2020 plans subbasin native yield could be described as a total volume of water and not associated with a given gross or net area. In addition, GSAs should initiate a stakeholder-driven process to develop a methodology for establishing landowner-level allocations of native yield that are coordinated across the subbasin. The allocation methodology should be consistent with various legal considerations drawn from applicable case law and be generally consistent with groundwater rights, recognizing that GSAs do not have statutory authority to make a final determination of water rights. An equal-per-gross acre approach to allocations is not likely to be consistent with established water rights doctrine, which must recognize many equitable considerations in addition to acreage owned, to determine a legally defensible allocation. Further information regarding allocation methodology can be found in Groundwater Pumping Allocations Under California’s Sustainable Groundwater Management Act – Environmental Defense Fund and New Current Water & Land, July 2018. Groundwater Markets Markets are essential in facilitating the highest and best use of a limited resource and in giving landowners the most flexibility to minimize the economic impacts of pumping restrictions. To enable a market that works for all landowners in the subbasin, it is imperative that all pumpers know exactly how much marketable water they have available for use or transfer. Unless it is deemed necessary to prevent undesirable results, markets should not place geographic or jurisdictional limitations on transfers within a subbasin and should allow for carry-over of allocations from one year to the next. Pumping Restrictions Wonderful understands that there are instances where it may be necessary to restrict pumping in order to achieve basin-wide sustainability. If this becomes a necessity, the GSAs or MAs should implement pumping restrictions when supported by the best available data and appropriate analytical tools. Furthermore, if possible, pumping should be ramped down gradually over the implementation period to avoid a sudden disruption in economic activity.

As with native yield allocations, initial pumping allowances and ramp down schedules should be coordinated across the entire basin so that similarly situated pumpers in the basin are treated equitably regardless of their respective MA (some MAPs include a ramp down schedule for groundwater-only lands and others do not; this is a significant difference and should be reconciled).

Groundwater Recharge and Banking GSAs must develop clear policies and conditions that protect existing investment in groundwater banking and banked inventory, and without interference with existing rules and regulations. GSAs must also find a way to incentivize additional investment, such as on-farm recharge, and allow flexibility for recharged or banked water to be freely transferrable (subject to the rights and conditions of use associated with the source water and the avoidance of undesirable results). \\'here possible, GSPs should also identify management areas that may benefit from additional recharge and banking. We also recommend that GSAs work to develop incentives for public or private investment to expand recharge and banking capacity, as these facilities help to achieve multiple benefits (e.g., habitat, water quality, drinking water, etc.).

Measurement and Data l\ilanagement Finally, GSAs should develop a coordinated basin-wide data management system ("DMS") that is capable of tracking groundwater and surface water use at the landowner, field, or parcel level, and a coordinated methodology for measuring landowner-level use of groundwater. The DMS should also include, or be capable of interfacing with, a groundwater market platform that allows for individual users to conduct transactions.

Markets will be most effective if there is confidence in the accuracy of the measurements taken, consistency in the data sources relied upon, and flexibility to allow for transactions across the basin. For instance, GSAs using remote sensing to calculate crop evapotranspiration ("ET") as a measurement of consumptive use of groundwater should develop methodologies and quality assurance elements to allow for grower provided information to be included into the ET calculation and calibration. Additionally, GSAs should establish criteria and procedures to address any apparent inaccuracies in the ET calculations (e.g., if calculated ET is greater than applied water and precipitation).

***

Wonderful appreciates the oppmiunity to provide feedback on the GSP and MAPs. We would be happy to discuss these comments at your convenience. Thank you for your considei·ation.

Sincerely,

Rob C. raceburu President Wonderful Orchards LLC

3

L-Dav d W. Krause President Wonderful Citrus LLC

1

BEFORE THE BOARD OF DIRECTORS OF WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT

IN THE MATTER OF: RESOLUTION NO. 2019-XX

RESOLUTION APPROVING MANAGEMENT AREA PLAN FOR WHEELER RIDGE-

MARICOPA WATER STORAGE DISTRICT MANAGEMENT AREA

WHEREAS, the Kern Groundwater Authority (the “Authority”) is duly formed and existing under and pursuant to that certain Second Amended and Restated Agreement Joint Powers Agreement (the “JPA”), for the purposes of carrying out the Sustainable Groundwater Management Act (Water Code § 10720 et seq.) (SGMA), including the development, adoption and implementation of a Groundwater Sustainability Plan (GSP) for lands within the boundaries of the Authority’s members and elsewhere within the Tulare Lake Groundwater Basin;

WHEREAS, the District is a member of the Authority;

WHEREAS, pursuant to Section 7.01 of the JPA, the District has exercised its option under the JPA to develop a chapter governing SGMA implementation within the boundaries of the District for inclusion in the Authority’s GSP, which is titled Groundwater Sustainability Plan- Wheeler Ridge-Maricopa Water Storage District Management Area (the “WRMWSD Chapter”); and,

WHEREAS, the District has conducted public outreach, solicited public input on, and, as appropriate, has responded and/or will respond to public comments on, the WRMWSD Chapter as required under SGMA; and

WHEREAS, following such outreach, solicitation and response, the District’s Board of Directors reviewed and evaluated the WRMWSD Chapter.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT does hereby resolve, declare and order as follows: 1) Each of the matters set forth above is true and correct and the Board so finds and determines.

2) The Board finds that the WRMWSD Chapter is consistent with the requirements of SGMA, and pursuant to

Section 2.03(b) of the JPA approves the Chapter for inclusion in the Authority’s GSP.

3) The Board hereby authorizes District staff to undertake such actions as are necessary and appropriate to transmit the WRMWSD Chapter to the Authority and to present the WRMWSD Chapter to the Authority’s Board of Directors for consideration of inclusion in the Authority’s GSP.

ALL THE FOREGOING being on motion of Director_______________, seconded by Director______________, and authorized by the following vote, to wit: AYES: NOES: ABSTAIN: ABSENT:

2

I HEREBY CERTIFY that the foregoing resolution is the resolution of said District as duly passed and adopted by said Board of Directors on the 11th day of December 2019.

WITNESS my hand and seal of said Board of Directors this 11th day of December 2019.

(District Seal) __________________________________

Jose Marin Secretary-Treasurer of the Board of Directors


Agenda Item 8.4b

MEMORANDUM




SUBJECT: Designate District Representative and Alternate to KGA Board of Directors

As per the Section 3.01(b) of the Kern Groundwater Authority Joint Powers Agreement:

(b) Each General Member’s governing board shall select a representative fromits governing body ... to serve as their Board member. A General Membermay designate from its governing body ... to serve as its alternativeDirector. The role of each alternate Director shall be to assume the dutiesof the Director appointed by his/her Member entity in the case of theabsence or unavailability of such Director, including without limitationsuch Director’s duties as a member of any Committee established pursuantto Section 3.03. The Directors and alternates so named shall continue toserve until their respective successors are appointed.

The District’s representative on the KGA Board of Directors was Directors Mullins, withDirector Blaine currently serving as the District alternate. With the passing of Director Mullins,the District could either choose to designate a new District Representative and AlternateDirector, or continue to have Director Blaine serve as an Alternate Director in Director Mullinsstead.

Recommendation: It is recommended the Board designate a District Representative andAlternate Director to the KGA Board of Directors.

S:\Management\Shared_AA\Board Mailing DEC 11, 2019\8.4.b WRM_Memo_2019_Designate_District_Representatives.wpd


Agenda Item 8.4c

MEMORANDUM




SUBJECT: Consider Approval of Revised District/Landowner Non-District LandsManagement Agreement

In June, the District approved three agreements related to the coverage of non-district, or“white”, lands within the Kern Groundwater Authority (KGA). Those agreements were:

1) “Sustainable Groundwater Management Act Management Agreement” (ManagementAgreement) between the District and owners of white lands;

2) “Sustainable Groundwater Management Act Jurisdiction Agreement” (JurisdictionAgreement) between the KGA and the District; and

3) “Second Amended and Restated KGA Joint Powers Agreement” (JPA) between allmembers of the KGA.

With that, the District entered into separate Management Agreements with 3 landowners regarding 4 parcels outside the District boundary, entered into the Jurisdiction Agreement with the KGA, and executed the JPA.

Since that time, some landowners within the county approached various districts (including WRM) and the KGA requesting changes to the Management Agreement, which would necessitate changes to the Jurisdiction Agreement. Accordingly, the KGA approved modified Management Agreement templates and a modified Jurisdiction Agreement (attached) at its regular September Board meeting. These changes revised the covenant not to sue and indemnity language in the Management Agreement, and made corresponding changes to the Jurisdiction Agreement. The Board authorized the execution of the Jurisdiction Agreement in October.

At the November Board meeting, District staff was directed to work with landowners modifying the Management Agreement. The modified Management Agreement1 is attached for approval.

Recommendation: It is recommended the Board authorize the Engineer-Manager to execute the attached First Amended and Restated Sustainable Groundwater Management Act Management Agreement with Wheeler-Ridge Maricopa Water Storage Agreement, subject to final approval of the Engineer-Manager and District Counsel.

1 First Amended and Restated Sustainable Groundwater Management Act ManagementAgreement with Wheeler Ridge-Maricopa Water Storage District

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RECORDING REQUESTED BY AND WHEN RECORDED, MAIL TO: WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT 12109 Highway 166 Bakersfield, CA 93313-9630

SPACE ABOVE THIS LINE FOR RECORDER’S USE RECORDING FOR THE BENEFIT OF A GOVERNMENT AGENCY NO FEE PURSUANT TO CA. GOV’T CODE SECTION 6103 Kern County APN’s: _____________________________________

First Amended and Restated Sustainable Groundwater Management Act Management Agreement

with Wheeler Ridge-Maricopa Water Storage District

This Sustainable Groundwater Management Act Management Agreement with Wheeler Ridge-Maricopa Water Storage District (“Agreement”) is made and entered into this ___ day of ________, 2019, by and between the Wheeler Ridge-Maricopa Water Storage District, (“District”) and ____________________ (“Landowner”). District and Landowner are sometimes each individually referred to herein as a “Party” and collectively as the “Parties.”

RECITALS

WHEREAS, Landowner is an individual, or authorized agent of an entity, owning real property in Kern County, California (“Landowner Land”) located outside of the District’s boundaries, which is described on Exhibit A and generally shown on Exhibit B, attached hereto and incorporated by reference.

WHEREAS, District is a California water storage district comprising approximately 147,000 acres situated in Kern County.

WHEREAS, the Sustainable Groundwater Management Act (“SGMA”) provides that all basins designated as critically overdrafted high-priority basins shall be managed under a Groundwater Sustainability Plan (“GSP”) or a coordinated GSP by January 31, 2020.

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WHEREAS, the Landowner Land is overlying the Kern County Sub-basin (Basin Number 5-022.14, DWR Bulletin 118) within the San Joaquin Valley Groundwater Basin (“Basin”), a DWR designated high-priority and critically overdrafted basin and, therefore, the Basin, and all portions thereof, must be managed by a local agency under a GSP by January 31, 2020.

WHEREAS, SGMA allows local agencies to become a groundwater sustainability agency (“GSA”) to engage in the sustainable management of groundwater pursuant to the provisions of SGMA. Private landowners, either individually or collectively, are not local agencies under SGMA, and therefore cannot be members of a GSA.

WHEREAS, District is currently a member of the Kern Groundwater Authority GSA (“KGA”), under which the District will work collaboratively with other interested local agencies to develop and implement a GSP to manage a portion of the Basin.

WHEREAS, notwithstanding its membership in the KGA, the District has decided to become an exclusive GSA under SGMA for those lands within the District’s boundaries that also overlie a portion of the Basin, except for certain lands that overlap with the boundaries of the adjacent Arvin-Edison Water Storage District and West Kern Water District, and on or about November 7, 2019, the District informed DWR of such decision and its intent to undertake sustainable groundwater management pursuant to Water Code section 10723.8.

WHEREAS, with respect to SGMA jurisdictional considerations, the Landowner Land is currently within the jurisdictional boundaries of the KGA.

WHEREAS, the KGA is organizing its GSP in chapters that generally align with district boundaries and that prescribe the management actions to be taken by said districts to comport with the requirements of SGMA. Each chapter will be developed by one or more local agencies that are members of the KGA. In order to comply with SGMA, the KGA will facilitate the District’s GSP coverage for lands located in close proximity to their jurisdictional boundaries.

WHEREAS, Landowner desires to be included in the chapter to be developed by the District (the “District’s GSP Chapter”) to afford GSP coverage to the Landowner Land. In this respect, Landowner is willing to provide local information and assistance to the development of the GSP that is ultimately adopted by the KGA that will manage the Landowner Land under SGMA. Landowner is also willing to contribute financially to obtain such GSP coverage. Thus, the Landowner enters into this Agreement for the purpose of enabling Landowner SGMA coverage for its land through the District’s GSP Chapter.

WHEREAS, the Landowner will provide information for its respective real property and funding determined by the District in its sole and absolute discretion (subject to applicable law) for the process for the District to include the Landowner Land within the District’s GSP Chapter. The approval of any GSP governing the Landowner Land will

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ultimately lie with the District, the KGA and the State of California, which will consider the completeness and effectiveness of the GSP to be developed under SGMA. Due to the mandated deadlines of SGMA and its associated regulations, the District will initiate proceedings to amend the area to be covered by District’s GSP Chapter to include Landowner Land, but must also concurrently continue preparation of the District’s GSP Chapter, and thus, the Landowner consents to be included in the District’s GSP Chapter as herein provided. To the extent the District incurs any additional cost to include Landowner Land in its GSP Chapter, such fees or costs shall be borne solely by the Landowner and paid promptly upon being invoiced by either the District or by such consultants directly. The GSP, after being approved and agreed to by the KGA and ultimately the State of California, shall be managed by the District and/or KGA.

WHEREAS, the Landowner shall be independently responsible to provide information and funding at the request of the District to maintain and support the efforts to include the Landowner Land within the District’s GSP Chapter.

WHEREAS, the Parties do not intend that the inclusion of the Landowner Land within the District’s GSP Chapter, or that this Agreement in any way provides Landowner Land with a right to any portion of the water supplies of the District.

WHEREAS, the Parties enter into this agreement based on the understanding that Landowner Land is mostly non-irrigated land with little or no past or current groundwater use, and that the District or others through the District’s GSP Chapter or by other means may, among other things, provide for and authorize levy of additional or increased Charges (as defined below) in the event of future new or increased pumping on or associated with ownership of Landowner Land.

WHEREAS, the KGA has entered or will enter into Agreements to indemnify its members against liability from or related to the provision of KGA jurisdiction over Landowner Land. KGA and the District also have entered or will enter into agreements in which the District will indemnify the KGA for provision of jurisdiction to manage Landowner Land. This Agreement and the indemnity provided by the Landowner to the District is intended to include, either through direct indemnification, or otherwise by passing through the indemnification provided herein, the KGA and its members.

WHEREAS, District and Landowner previously entered into a Sustainable Groundwater Management Act Management Agreement dated ___________________, 2019, with respect to Landowner Land, and this Agreement amends and restates, in its entirety, and replaces, said prior management agreement.

NOW, THEREFORE, in consideration of the foregoing Recitals and the following terms and conditions, it is agreed by and between the Parties as follows:

I. PURPOSE OF AGREEMENT

The Parties enter into this Agreement solely for the purpose of providing the Landowner with a process to attempt to comply with SGMA through the inclusion of the

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Landowner Land within the District’s GSP Chapter. Neither the District nor any landowners within the District’s current boundaries are committing anything to the Landowner Land except for the inclusion of the Landowner Land within the District’s GSP Chapter, provided that Landowner complies with the terms of this Agreement. Furthermore, District is voluntarily electing to perform this GSP coverage function for the benefit of Landowner despite have no obligation to perform this function. This Agreement is intended to form the basis of the Parties’ understanding regarding the terms and conditions of including the Landowner Land within the District’s GSP Chapter, and their individual rights and responsibilities subsequent to such inclusion.

II. TERMS AND CONDITIONS OF INCLUDING LANDOWNER LAND WITHIN THE DISTRICT’S GSP CHAPTER

1. Commitment to Include Landowner Land in District’s GSP Chapter. The District hereby agrees to make reasonable efforts to include the Landowner Land within the District’s GSP Chapter, and the Landowner hereby agrees for the Landowner Land to be included within the District’s GSP Chapter, and Landowner consents to jurisdiction of the District and the KGA to adopt and implement a GSP including the Landowner Land, provided that such inclusion is approved by all necessary governmental bodies and the Parties have complied with all provisions of this Agreement. In that regard, a condition precedent to this Agreement becoming and remaining effective is that KGA maintain SGMA jurisdiction over the Landowner Land. Landowner acknowledges that there might be additional reporting requirements, monetary charges, or compliance measures imposed upon Landowner in connection with SGMA by the California Department of Water Resources (“DWR”), the State Water Resources Control Board, the courts, or other agencies or bodies with the authority to enforce terms and conditions of SGMA separate from the District under this Agreement. Landowner acknowledges and agrees that the District has no duty under this Agreement to prevent such compliance measures from being imposed on Landowner. Landowner further acknowledges that it will timely provide District and its consultants with all information necessary to include Landowner Land within District’s GSP Chapter such that inclusion of Landowner Land does not delay preparation of the chapter, and the District may decide in its sole and absolute discretion how to include Landowner Land in its chapter, including possibly in a separate portion thereof, given the relatively recent request for coverage of Landowner Land.

2. Regulation Contingent on Funding. The District and the Landowner

acknowledge that funding for the District’s efforts hereunder shall be provided on a long-term basis, if possible, through the development and subsequent payment by the Landowner of a land-based assessment and/or water charge as authorized by SGMA or other legally authorized fee or funding mechanism (“Charges”). Prior to the establishment of said Charges, the Landowner acknowledges and agrees that the District’s inclusion of the Landowner Land within the District’s GSP Chapter, and the District’s efforts to include the Landowner Land within the District’s GSP Chapter pursuant to this Agreement, are contingent upon Landowner’s regular and timely payment of (1) the general administrative expenses of the District that are attributable to the District’s efforts hereunder, (2) the Landowner’s pro-rata share of costs for consultants retained by the District for the purposes

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of developing or implementing the District’s GSP Chapter, and (3) any administrative or other costs the District incurs in implementing SGMA and coordinating with the KGA (or other GSA’s) for SGMA purposes concerning the Landowner Land.

Upon final execution of this Agreement, District shall bill and Landowner shall pay

the District $10 per acre of Landowner Land an initial payment to fund the District’s and its consultants’ efforts made pursuant to this Agreement, and any other activities related to the GSP processes. For costs in excess of the initial payment, District may invoice Landowner and in such event Landowner shall promptly pay District (not later than 30 days of the invoice) for the costs of District’s and its consultants’ efforts made pursuant to this Agreement and any other activities related to the GSP process, including those costs described above. In the event the District’s costs related to the GSP process for the Landowner’s property are less than the initial payment, the District shall reimburse the Landowner appropriately.

3. Determination of Funding Obligation. The amount of any additional payments required for Charges and/or services rendered by the District or others for the purposes of fulfilling the obligations set forth herein, or the formula for the calculation of such payments, and the method of such payments, shall be determined by the District, in consultation with the Landowner if required by law. Notwithstanding any provision of law, the Landowner consents to a fee, charge and/or assessment being levied on Landowner Land for such Charges. Without limiting the scope of the foregoing, such consent includes but is not limited to Landowner’s consent to Charges by the District or others for future new or increased pumping on or associated ownership of Landowner Land, whether due to exercise of groundwater pumping rights, allocations, credits or otherwise, which lands are principally range lands with little or no current groundwater production. Landowner further understands and agrees that such Charges may be greater than, in addition to or otherwise different from any fee, charge or assessment imposed on lands or water users within the District, in recognition that over the course of several decades District landowners and water users have previously developed their irrigated lands in reliance on production of groundwater and have paid substantial fees, charges and/or assessments for the purpose of funding a public project to import significant surface supplies and augment, conserve and otherwise improve groundwater conditions within the Basin underlying the District and the Landowner Land.

4. Failure to Satisfy Funding Obligation & GSP Requirements. Landowner

acknowledges and agrees that if, for any reason, the Landowner refuses or otherwise fails to remit any payment required hereunder, in the amount and using the method determined and requested by the District, or fails to comply with the requirements of the GSP and its management and regulation, or fails to comply with this Agreement or causes District to be noncompliant with SGMA (“Defaulted Landowner”), the District:

(a) shall be relieved of any and all obligation to proceed with

including the Defaulted Landowner’s Land within the District’s GSP Chapter; and

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(b) shall be relieved of any and all obligation to provide the services and obligations enumerated in this Agreement to a Defaulted Landowner; and

(c) may, in its sole and absolute discretion, seek to remove and shall have the right to have the Defaulted Landowner’s Land removed from the District’s GSP Chapter, at Defaulted Landowner’s expense, and in such event the Defaulted Landowner agrees to obtain regulation under SGMA by some other method separate and apart from the District pursuant to the terms for a withdrawing Landowner set forth in Paragraph 8 of this Agreement; and

(d) may, in its sole and absolute discretion, place a lien upon the Landowner Land for amounts due but not paid; and

(e) may, in its sole and absolute discretion, seek specific performance or obtain any other remedy or relief available at law or in equity; and

(f) may, in its sole and absolute discretion, terminate water service to Landowner Lands; and

(g) shall have no obligation to reimburse Landowner for any Charges paid to date.

5. No Protest in Case of Removal of Defaulted Landowner Land; Duty to Cooperate. Landowner hereby agrees that, if the Landowner breaches the terms of this Agreement, including but not limited to, by refusing or failing to remit any payment required herein, following thirty (30) days written notice of alleged breach and Defaulted Landowner’s failure to timely cure such breach, the District, may in its sole and absolute discretion, seek to remove and shall have the right to remove the Defaulted Landowner’s Land, at the Defaulted Landowner’s expense, from the District’s GSP Chapter, and if the District does so, the Landowners shall not lodge any protest, participate in any protest hearing, or act in any way to influence the outcome of the District’s decision, and District shall have no further obligation to Landowner to provide any services hereunder.

6. Disclaim Water Rights. Landowner expressly disclaims any right to any

District water supplies (surface or groundwater) other than through any future negotiated purchase, transfer, or exchange any Landowner has obtained or may obtain wholly outside of this Agreement and not related to this Agreement. Landowner understands and agrees that as a result of the foregoing disclaimer, among other things, inclusion of the Landowner Land within the District’s GSP Chapter will not entitle the Landowner to receive any portion of the District’s water supply (including, without limitation, imported State Water Project supplies, groundwater and banked water) or other District assets. Landowner further understands and agrees the sole purpose of this Agreement is to provide the Landowner a process to obtain coverage by the KGA GSP, and thus, SGMA compliance for the Landowner by affording Landowner the benefit of inclusion within the District’s GSP Chapter. Any GSP must ultimately be approved and agreed to by the District and thereafter by the KGA and such GSP shall be solely managed and regulated by the KGA

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and/or the District, supported in part by information and funds provided by the Landowner. The Landowner further understands and agrees that any other benefits accruing to the Landowner Land and/or to Landowner as a result of this Agreement are purely incidental and shall not give rise to any expectation, entitlement, or right to District water supplies or assets of any kind, including, but not limited to, Kern River water, State Water Project water, Central Valley Project water, carryover supplies, supplies from any lake, river, stream, creek, manmade conveyance, or aquifer that the District purchases, acquires, transfers, exchanges, takes receipt of or otherwise controls, including groundwater supplies or any return flows that may enter the underground aquifer as a result of delivery within District of any of the foregoing water supplies, or any District banked supplies including banking losses of water management programs, or any other designation or classification of District water whatsoever, whether in existence at the time this Agreement is executed or created at some future time. Other than the reservations noted above, nothing in this Agreement is intended to limit current or future groundwater rights of the Landowner beyond that imposed by operation of law; provided, however, the Landowner recognizes that with no imported supplemental surface water supply presently available to Landowner Land, either provided directly by the District or other sources, or indirectly through the District’s project (supported in part by charges paid by all or substantially all landowners and/or water users within the District), and through the approved GSP, the Landowner’s ability to pump groundwater for use upon Landowner Land in the future may be limited. Landowner agrees that any future groundwater projects (including, without limitation, sale or transfer of any groundwater allocation or credit, drilling of wells or groundwater storage projects) will require the prior written approval of the District.

7. No Voluntary Consent. Once the Landowner Land is included within the

District’s GSP Chapter and the GSP is adopted by the KGA and approved by DWR, the Landowner hereby agrees not to consent to the inclusion of any portion of the Landowner Land within another chapter of the KGA GSP developed by any entity other than the District without the District’s express prior written consent. It is noted that District has the option as a KGA member district to form its own GSA and/or withdraw from KGA and develop its own GSP. Landowner acknowledges that in the event that the District were to ever withdraw from the KGA or develop its own GSP as a GSA, there is a risk which Landowner hereby expressly assumes that neither KGA nor the District will be able to maintain jurisdiction over Landowner Land and Landowner may have to seek compliance with SGMA through some alternative means or arrangement at its sole cost and expense.

8. Withdrawal of Landowner. Until the GSP is adopted by the KGA and

approved by DWR, the Landowner may elect to withdraw all of the Landowner Land from this Agreement and be excluded from the District’s GSP Chapter, and instead be included within another chapter of the KGA GSP developed by another member of the KGA or otherwise seek alternative lawful SGMA compliance, by providing written notice to the District. If Landowner elects to withdraw, then the Landowner shall be responsible for advance payment of all costs and obligations associated with the withdrawal, including but not limited to, any amendments or revisions of the District’s GSP Chapter or the KGA GSP required to maintain compliance with SGMA in the event of their withdrawal. The District may impose additional requirements upon any withdrawing Landowner, to ensure

Page 8 of 15

compliance with SGMA, the GSP Chapter or the KGA GSP, and to satisfy any financial obligations resulting from the withdrawal of such Landowner. Upon withdrawal, the Landowner shall arrange for the withdrawn lands to be covered by another chapter of the KGA GSP developed by another member of the KGA or otherwise seek alternative lawful SGMA compliance, so that such lands of the withdrawing Landowner would continue to be compliant with SGMA. Any withdrawal from the District’s GSP Chapter shall not be effective unless and until the withdrawing landowner has made such arrangements and the alternative means of SGMA compliance is effective for such lands of the withdrawing Landowner.

9. Covenant Not to Sue or Contest. In consideration of the District’s inclusion

of Landowner Land into the District’s GSP Chapter and Landowner’s right to withdraw as provided in Section 8, the Landowner shall not sue or otherwise challenge in any manner or in any forum the District, the KGA, the KCWA and/or KGA members, including any of their legal successors and assigns, on the development, adoption, or implementation of the KGA GSP or District’s GSP Chapter (including any amendment thereto), so long as such GSP, chapter or amendment was adopted in the manner provided by law. The Landowner acknowledges and agrees that any such challenge, or the initiation of a lawsuit, judicial, or administrative action against the District, KCWA, or the KGA GSA for claims related to inclusion of the Landowner’s Land in the District’s GSP Chapter, will render the Landowner initiating the action a Defaulted Landowner (as defined by Section 4 of this Agreement). Landowner’s covenant under this Paragraph 9, is solely limited to any challenge or action relating to or regarding its Landowner Land covered by this Agreement and does not in any way apply to any challenge or action relating to or regarding any other land in Kern County that Landowner owns now, or in the future. Moreover, nothing in this Paragraph 9 shall prevent or preclude Landowner from actively participating in the development and implementation of the District’s GSP Chapter, any other KGA member GSP Chapter or the KGA GSP, or any subsequent review by the State of California of the KGA GSP or any GSP Chapter. Landowner’s covenant under this Paragraph 9 will not bar Landowner from initiating or participating in a comprehensive groundwater basin adjudication concerning the Basin pursuant to California Code of Civil Procedure, sections 830 et seq.

10. Termination in the Event of Adjudication. In the event that a comprehensive

groundwater basin adjudication is brought concerning the Basin pursuant to California Code of Civil Procedure, sections 830 et seq., whether by Landowner as a plaintiff, the District as a plaintiff, or by a third-party(s), either Party may elect to terminate this Agreement by written notice to the other Party. Notwithstanding any other provision of this Agreement, upon termination by a Party following the commencement of said comprehensive adjudication, neither Party will have any remaining obligation or liability to the other Party, except for those provisions which expressly survive termination of this Agreement and any payment obligations of Landowner as described in this Agreement.

11. Notice of Agreement. The Landowner agrees to provide a copy of this

Agreement to each and every person who receives any interest in any portion of the Landowner Land.

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12. Runs with the Land. The benefits and burdens of this Agreement are

intended to attach to and run with the land particularly described in Exhibit A to this Agreement, are related to the direct benefit, use, maintenance and improvement of the Landowner Land, and shall be binding on and inure to the benefit of the Parties and their respective legal representatives, successors, heirs and assigns. It is the intent of the Landowner from the date of this Agreement, that the equitable servitudes, covenants, conditions, restrictions, assessments and other duties and obligations herein or in the District’s GSP Chapter (so long as such lands have not been withdrawn pursuant to Section 8 hereof) run with the land and shall be binding on any successors or assigns. All persons or entities claiming under the Parties, or who accept deeds, leases, easements or other grants of conveyances to any portion of the Landowner Land, agree that they shall be personally bound by all of the provisions of this Agreement, and shall conform to and observe the provisions of this Agreement and the District’s GSP Chapter and the KGA GSP. The Parties agree that a covenant evidencing this Agreement and its nature as attaching to and running with the land, shall be executed by the Landowner and recorded with the Clerk/Recorder of the County of Kern as a condition to the inclusion of the Landowner Land within the District’s GSP Chapter and the KGA GSP.

13. Entire Agreement; Amendments or Modifications. The Parties agree that

this Agreement contains the entire Agreement and understanding concerning the subject matter among the Parties and supersedes and replaces all prior negotiations of proposed agreements, written or oral, if any. This Agreement shall not be amended or modified except in writing, executed and agreed to by all of the Parties to this Agreement.

14. Effective Illegality. If any paragraph, sentence, clause, or phrase becomes

illegal, null, or void for any reason or is held by any court of competent jurisdiction to be illegal, null, void, or against public policy, the remaining paragraphs, sentences, clauses, or phrases are not affected, and the Parties must negotiate an equitable adjustment of the affected provision with a view toward effecting the purpose of this Agreement.

15. Construction. Headings are used for convenience only and have no force or effect in the construction or interpretation of this Agreement. As used in this Agreement, the singular includes the plural and the masculine includes the feminine and neuter. This Agreement is a joint product of all Parties and is to be interpreted as such. This Agreement: (1) shall not be construed against the Party preparing it; (2) shall be construed as if the Parties had jointly prepared this Agreement; and (3) shall be deemed their joint work product. Each and every provision of this Agreement shall be construed as through the Parties participated equally in the drafting hereof, and, therefore, any uncertainty or ambiguity shall not be interpreted against any one Party. As a result of the foregoing, any rule of construction that a document is to be construed against the drafter shall not be applicable.

16. No Third-Party Rights. Nothing in this Agreement, whether expressed or implied, either is intended, or is to be construed, or otherwise interpreted as, conferring any

Page 10 of 15

rights or remedies on any third parties. Also, nothing in this Agreement gives any third parties any rights of subrogation against any Party.

17. Governing Law and Venue. This Agreement is entered into and performed

in the State of California and is to be interpreted pursuant to the internal substantive law, and not the law of conflicts, of the State of California. Venue in any action brought under this Agreement shall be in the Superior Court of the County of Kern, State of California.

18. Indemnification. The Landowner (“Indemnifying Party”) shall protect, defend, indemnify and hold harmless the District, the KGA, and the KGA members along with their respective directors, officials, officers, managers, employees, contractors and agents (“Indemnified Party”) from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without limitation, attorneys’ fees and expenses) imposed upon, incurred by, or asserted against an Indemnified Party arising out of, resulting from, or in connection with (a) any indemnification obligation undertaken by the District under the KGA Indemnity or otherwise with respect to the Landowner or the Landowner Land, or (b) any action taken or omitted to be taken by the Indemnifying Party under this Agreement, including but not limited to the following: (i) the actions or omissions by Landowner or Landowner’s affiliates, members, managers, employees, contractors and agents related to this Agreement, the KGA GSP, or SGMA; (ii) the Landowner or Landowner’s affiliates, members, managers, employees, contractors and agents’ violation of any applicable laws or regulations; (iii) the failure on the part of Landowner or Landowner’s affiliates to perform or comply with any of the terms of this Agreement, or (iv) the inclusion of the Landowner Land in the District’s GSP Chapter, provided, however, that such indemnity shall not extend to any such suit, claim, or damage to the extent caused solely by the negligent or wrongful acts or omissions of any Indemnified Party. For purposes of clarity, the Indemnifying Party’s indemnification obligation provided under this Paragraph 18 shall be limited to its Landowner Land included under this Agreement. The indemnification provisions in this paragraph shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the District or its directors, officials, officers, managers, employees, contractors and agents.

19. Effective Date and Term of Agreement. The effective date of this

Agreement shall be the date last signed below. This Agreement shall remain in effect with respect to each particular Landowner, subject to the conditions precedent mentioned above, unless and until such Landowner fails to perform according to the terms of this Agreement or such Landowner withdraws from the Agreement pursuant to Section 8 hereof.

20. This Agreement shall have no force or effect upon a determination that the

performance of any provision of this Agreement will result or has resulted in the violation of state or federal law.

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LANDOWNER

_____________________________ APN(s):

Signature Signature By: By:

Printed Name Printed Name Title: Title:

Dated: Date: WHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT: Signature By: Sheridan Nicholas, P.E., Engineer-Manager Dated:

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EXHIBIT A

[Property Descriptions]

Property 1:

Property 2:

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EXHIBIT B

[District Boundary Map]

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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF KERN ) On _________________, before me, __________________________, Notary Public, personally appeared ______________________________, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal. Notary Public A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF KERN ) On _________________, before me, __________________________, Notary Public, personally appeared ______________________________, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal. Notary Public

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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF KERN ) On _________________, before me, __________________________, Notary Public, personally appeared ______________________________, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal. Notary Public


Agenda Item 8.6

MEMORANDUM




SUBJECT: Release of Draft EIR for Operation of SWP

On October 22, the US Fish and Wildlife Service (FWS), the National Marine Fisheries Service(NMFS), and the US Bureau of Reclamation released biological opinions that set the rules foroperations of the State Water Project and Central Valley Project.

On November 21, the California Department of Water Resources issued a draft EnvironmentalImpact Report for Long Term Operation of the State Water Project. The November 21 DWRpress release is attached, as well as a CalMatters article from Wade Crowfoot, CaliforniaSecretary for Natural Resources, and Jared Blumenfeld, California Secretary for EnvironmentalProtection.

From the DWR press release:

DWR’s draft proposal differs from the federal Biological Opinions in several key ways:

- It improves species protection by vesting authority in CDFW to stop operational changesif it determines they will violate CESA standards.

- It includes multiple alternatives that provide a block of environmental water that can beused to offset pumping impacts in the Delta, with adjustments made over time as newinformation is learned.

- It provides clear direction on when Delta pumping can be increased during storm eventsand caps the amount that exports can be increased in those events.

- It includes updated modeling and quantitative analyses to support habitat actions insummer and fall to benefit Delta smelt.

- It includes specific protections for longfin smelt, a protected species under CESA, and acommitment to implementing a longfin smelt science plan.

- It does not seek to increase SWP exports

KCWA staff is working with other State Water Contractors to develop comments on the DraftEIR; the comment period closes on January 6, 2020.

In some more good news, and separate from the State’s announcement regarding the Draft EIR, ithas also announced that it intends to sue the federal government over the new biologicalopinions.

California rejects federal water proposal, lays out its vision for protecting endangered species and meeting state water needs By Wade Crowfoot and Jared Blumenfeld, Special to CalMatters California’s water policy can be complex, and—let’s be honest—often polarizing.

Water decisions frequently get distilled into unhelpful narratives of fish versus farms, north versus south, or urban versus rural. Climate change-driven droughts and flooding threats, as well as our divided political climate, compound these challenges.

We must rise above these historic conflicts by finding ways to protect our environment and build water security for communities and agriculture. We need to embrace decisions that benefit our entire state. Simply put, we have to become much more innovative, collaborative and adaptive.

For this reason, Gov. Gavin Newsom directed us earlier this year to turn the page on old binaries and develop a broad, inclusive water agenda.

Our agencies and the California Department of Food and Agriculture will take a big step in this direction in December when we release a draft Water Resilience Portfolio for public feedback. It will serve as a roadmap for the Newsom administration with a broad set of recommendations to improve water systems across our diverse state.

Much of what we are attempting has never been tried. Difficult trade-offs have to be made unless we can find creative solutions that balance all water needs. And even then, sometimes tough decisions will have to be made.

The protection of endangered fish in the Sacramento-San Joaquin Delta requires our immediate attention. We have crucial pumping infrastructure that delivers water to two-thirds of our state’s population, but also impacts imperiled fish in the Delta.

In 2018, federal authorities embarked on an accelerated process to update the federal biological opinions, which set rules to operate the Delta pumps to protect endangered fish.

To ensure appropriate protection surrounding that process, those of us who are responsible for water management decided we could no longer rely on the federal process. Instead we are taking a careful, science-based approach to operating the State Water Project.

We are drawing on a decade of science to strengthen safeguards for fish and improve real-time management of the project that delivers water to 27 million Californians in the Bay Area, Central California and Southern California. It was a departure from past practice, but a necessary one.

After careful review of the federal biological opinions released late last month, our best experts concluded they are insufficient to protect endangered fish. As a result, the state needs to protect California’s interests and values.

We remain committed to finding common solutions with the federal government and all those interested in ending the patterns of the past.

Top of our list is working together to develop a set of voluntary agreements that can implement the State Water Board’s update to the Water Quality Control Plan for the Sacramento and San Joaquin River systems and Delta.

These agreements aim to provide additional water, habitat and science to improve environmental conditions in the two river systems and the Delta while providing water for other beneficial uses such as agriculture. Importantly, successful voluntary agreements will bring these benefits online quickly while avoiding a decade or more of litigation.

Today, policy decisions are routinely portrayed as a win for one interest at the expense of another. Especially so in the environmental arena, where headlines focus on conflict while context and thoughtful nuance are often lost.

When it comes to water in California, and all of its complexities, there are no magic fixes. What we do have is a strong commitment to move forward and not only adapt to the present, but prepare for the future.

We believe there is an urgency to address various challenges, including environmental protection and climate change. It is critical we set forth strategies and tactics that are pragmatic and feasible, and that we forge synergies and linkages between the different people, stakeholders and areas of our state so that we can rise above rhetoric, and truly work hand-in-hand toward one common goal on this issue. When it comes to water, California demands and deserves no less than our best effort.

https://calmatters.org/commentary/delta-water/

https://calmatters.org/commentary/delta-water/


Agenda Item 8.7

MEMORANDUM


FROM: Wendy Jones


SUBJECT: Berrenda Mesa Banking Project – First Amendment to Joint Water Banking Project Agreement At its regularly held Board Meeting November 20, 2019, the KCWA presented and adopted, by Resolution 46-19, the First Amendment To Joint Water Banking Project Agreement On The Berrenda Mesa Property. Lost Hills WD (‘LHWD’), Belridge WSD (‘BWSD’) and Berrenda Mesa WD (‘BMWD’) together with Wheeler Ridge-Maricopa (‘WRM’) comprise the Participants of the Banking Project with BMWD and KCWA being the Operators of the Project. In summary, the Amendment modifies the original 1999 Agreement and two subsequent extensions in December

2017 and November 2018, as follows:

1. Regardless of availability of the Kern River Channel, WRM has a third priority right to unused recharge

capacity if neither BMWD, LHWD or BWSD are using their reserved first and second priority rights. If none of

the four Districts are recharging, then KCWA shall have a fourth priority right of unused recharge capacity to

recharge for overdraft correction, if all Participants approve.

Participant Recharge Capacity Priority

Percent Share

Berrenda Mesa Water District First 100

Belridge Water Service District Second 50

Lost Hills Water District Second 50

Wheeler Ridge-Maricopa Water Service District

Third 100

2. Fixed and Capital Costs related to Recovery Charges will be allocated in proportion to the Project recovery

capacity, which, for WRM remains unchanged from the 1999 Agreement @ 17.78%. As presented at the 11/20/19

KCWA Board Meeting, the 2020 Recovery O&M Budget is set at $178,000; WRM’s share is calculated at $31,650.

3. The Amendment extends the Term of the Agreement 20 years to 2039.

4. The Insurance and Indemnification clause is updated to current language standards.

5. The Participants and Operators contacts are updated under the Notice provisions clause of the Agreement.

Recommendation.

Subject to final approval as to form by the Engineer-Manager and Counsel, it is recommended that the Board

authorize the Engineer-Manager to execute the attached First Amendment to the Joint Water Banking Project

Agreement on the Berrenda Mesa Property, which revises the recharge priorities of the project and extends the

Agreement term to 2039.

3N31376 1

BERRENDA MESA WATER DISTRICT

FIRST AMENDMENT TO JOINT WATER BANKING PROJECT AGREEMENT

ON THE BERRENDA MESA PROPERTY

THIS FIRST AMENDMENT TO JOINT WATER BANKING PROJECT AGREEMENT

is made and executed this _____ day of _________________, 2019 by and between the

BERRENDA MESA WATER DISTRICT (“District”) and KERN COUNTY WATER AGENCY,

(“Agency”), collectively the “Operators”, and the following named districts which are collectively

referred to as “Participants”:

Berrenda Mesa Water District

Belridge Water Storage Water District (“Belridge WSD”)

Lost Hills Water District (“Lost Hills WD”)

Wheeler Ridge-Maricopa Water Storage District (“Wheeler Ridge-Maricopa WSD”)

RECITALS

A. The Operators and the Participants entered into a Joint Water Banking Project

Agreement dated October 28, 1999 (hereinafter the “Agreement”); and

B. The Operators and the Participants extended the Agreement in December of 2017

and November of 2018: and

C. The Operators and the Participants desire to amend Article D(5)(a) of the Agreement

to modify the recharge priorities; and

D. The Operators and the Participants desire to amend Article D(10)(a) of the

Agreement to modify allocation of certain costs; and

E. The Operators and the Participants desire to amend Article D(19) of the Agreement

to modify the term of the Agreement; and

F. The Operators and the Participants desire to amend Exhibit E of the Agreement to

modify the Allocation of the Annual Recharge Capacity; and

G. The Operators and the Participants desire to amend Article H of the Agreement to

include each Participant’s current General Manager;

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NOW, THEREFORE, IT IS AGREED as follows:

1. Amendment to Article D(5)(a).

Article D(5)(a) of the Agreement is hereby amended in its entirety to read as follows:

a. The operation of the Project Facilities for recharge shall be as follows:

(1) District shall have first priority of the available recharge capacity of the Project,

whether the Kern River Channel is available for recharge or not, up to 100% of

such available recharge capacity.

(2) During periods where the District is not fully using its share of the recharge

capacity of the Project, the Lost Hills WD and Belridge WSD shall each have

second priority up to 50% of the remaining recharge capacity of the Project.

(3) During periods where none of the District, Lost Hills WD and/or Belridge WSD

are fully using their shares of the recharge capacity of the Project, Wheeler

Ridge-Maricopa WSD shall have third priority up to the amount of unused

recharge capacity of the Project.

(4) During periods where none of the District, Lost Hills WD, Belridge WSD, and/or

Wheeler Ridge-Maricopa WSD are fully using their shares of the recharge

capacity of the Project, the Agency shall have fourth priority up to the amount

of unused recharge capacity of the Project. The Agency may also use such

available capacity to recharge water for overdraft correction, if all Participants

approve.

2. Amendment of Article D(10)(a).

Article D 10(a) of the Agreement is hereby amended in its entirety to read as follows:

10. Project Payments.

a. Fixed, Project Development, and Capital Costs:

The estimated Fixed, Project Development, and Capital Costs shall be

collected from the Participants and the District by billing sixty percent (60%)

of said costs in January of each year and forty percent (40%) in July of each

year. Payments shall be due 30 days after billing. At the end of each year,

actual costs shall be compared with revenues received from the Participants

and the District. In the event of a shortfall of revenues, the Participants and the

District shall be assessed an amount to make up the shortfall. In the event of an

excess of revenues, the Participants and the District shall be credited in

proportion to their contribution of such revenues. Such assessments or credits

shall be applied to the July billing for the subsequent year. Annual Charges for

Fixed Costs for Recovery (as defined in Article D(9)(a)(3)) and Capital Costs

3N31376 3

related to such Recovery shall be allocated in proportion to Project recovery

capacity as shown in Article D. Annual charges for Fixed Costs for

Administration (as defined in Article D(9)(a)(1)), Recharge (as defined in

Article D(9)(a)(2)), and Capital Costs related to such Recharge shall be

allocated to the District.

3. Amendment of Article D(19).

The first sentence of Article D(19) of the Agreement is hereby amended in its

entirety to read as follows:

19. Term.

The Term of this Agreement shall be for twenty (20) years beginning ____,

2019, and ending _____________, 2039, unless mutually extended, except

as provided in Article D 19 d.

4. Amendment of Article E.

Article E is hereby amended in its entirety to read as follows:

E. Insurance and Indemnification.

Each party shall indemnify each other party from any and all claims resulting from

its own negligence, provided that any liability, including attorney's fees, for effects on

groundwater quantities or effects on adjacent pumping or quality shall be a Project

expense to be borne by the Participants and the District. The parties shall maintain

insurance and proper Worker's Compensation insurance under the laws of the State of

California.

Notwithstanding, and as an exception to, the foregoing, in the event of a claim of

liability against the Agency for any environmental violations, including but not limited to

the California Environmental Quality Act, arising directly from the Participants’ exercise

of rights under the Agreement, the Participants shall defend (including expert costs),

indemnify and hold the Agency harmless from any such claim.

5. Amendment of Exhibit E.

Exhibit E to this Agreement is amended to replace the table entitled “Allocation of

Annual Recharge Capacity Berrenda Mesa Project” as follows:

Allocation of Annual Recharge Capacity

Berrenda Mesa Project

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Participant Priority Percent Share

Berrenda Mesa Water District First 100

Belridge Water Service District Second 50

Lost Hills Water District Second 50

Wheeler Ridge-Maricopa Water

Service District

Third 100

The table on Exhibit E entitled “Allocation of Annual Recovery Capacity Berrenda Mesa Project”

is not changed in any way by this amendment.

6. Amendment of Article H.

Article H of the Agreement is hereby amended in its entirety to read as follows.

H. Notices.

Any notice or instrument delivered under this Agreement may be delivered by

personal delivery or by depositing the same in a United State Post Office, registered or

certified, postage prepaid, addressed to:

Agency: Kern County Water Agency

P. O. Box 58

Bakersfield, CA 93302-0058

Attn: Curtis Creel, General Manager

District: Berrenda Mesa Water District

1405 Commercial Way, Suite 125

Bakersfield, CA 93309

Attn: Phillip D. Nixon, General Manager

Belridge

WSD:

Belridge Water Storage District

P. O. Box 1087


Attn: Phillip D. Nixon, General Manager

Lost

Hills

WD:

Lost Hills Water District

1405 Commercial Way, Suite 125


Attn: Phillip D. Nixon, Manager

Wheeler

Ridge-

Maricopa

WSD

Wheeler Ridge-Maricopa Water Storage District

12109 Highway 166


Attn: Sheridan Nicholas, Engineer-Manager

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7. Scope of Amendment.

Except as expressly modified by this First Amendment, the Agreement will remain in full

force and effect.

IN WITNESS WHEREOF, the Operators and the Participants have executed this

Agreement, as of the date and year first above written.

DISTRICT AGENCY

BERRENDA MESA WATER DISTRICT KERN COUNTY WATER AGENCY

By: _________________________________ By:

Name: _______________________________ Name:

Title: ________________________________ Title:

PARTICIPANTS

LOST HILLS WATER DISTRICT BELRIDGE WATER STORAGE DISTRICT

By: By:

Name: Name:

Title: Title:

3N31376 6

BERRENDA MESA WATER DISTRICT WHEELER RIDGE-MARICOPA WATER

STORAGE DISTRICT

By: _________________________________ By:

Name: _______________________________ Name:

Title: ________________________________ Title:

BEFORE THE BOARD OF DIRECTORSWHEELER RIDGE-MARICOPA WATER STORAGE DISTRICT

RESOLUTION NO. 2019-xxIN THE MATTER OF:

COMMENDATION AND EXPRESSION OF APPRECIATIONTO DENNIS MULLINS

WHEREAS, Wheeler Ridge-Maricopa Water Storage District was formed in 1959, and has delivered 8,058,010 acre-feet ofirrigation water (through November 30, 2019) to its farming customers since 1970 via its 16 California Aqueduct turnouts, 137booster pumps, 297 miles of pipelines, 7 miles of canal, 18 groundwater wells and over 700 water meters that serve about 90,000acres of farmland;

WHEREAS, Dennis Mullins was born in 1952 to Donald Mullins and Myrtle Sunquist, graduated magna cum laude fromthe University of Michigan Law School, was admitted to the California State Bar in 1978, served in the Reagan and GeorgeH.W. Bush administrations, became General Counsel for Tejon Ranch in 1993, and was a landowner in District Division 9;

WHEREAS, Mr. Mullins began his service on the Wheeler Ridge-Maricopa Water Storage District Board of Directors asDivision 9 Director on December 10, 1997, and served continuously as Division 9 Director until his unexpected passing onNovember 6, 2019 (22 years); he was only the second Division 9 Director since the District’s formation in 1959, andsucceeded Director Dennis McCarthy who served as Division 9 Director for 38 years;

WHEREAS, during his service on the Board, Mr. Mullins held Officer positions of Assistant Secretary and Secretary from timeto time, and served on the Executive Committee, the Budget and Finance Committee*, the Grounds and Buildings Committee*,the Personnel Committee, the Litigation Committee*, the Water Marketing Committee*, the Ad Hoc Building RemodelCommittee and the Ad Hoc Delta Conveyance Project Committee of the Board; he served one or more terms as Chair of thoseCommittees designated with an *;

WHEREAS, 41 percent (nearly 3.3 million acre-feet) of the District’s water deliveries to its customers were made duringMr. Mullins’s service to the District;

WHEREAS, Mr. Mullins’s expertise, advice, policy guidance, ability to comprehend and communicate complex issues, andBoard leadership contributed to substantial benefits to the District’s customers during a period of significant changes in theDistrict’s water supply costs, availability, reliability, and sources; among these benefits are:1. correction of groundwater overdraft within the District compared to the pre-SWP condition;2. increase in land values and production of food and fiber within the District;3. diversification of the District’s water supply from a sole reliance on the State Water Project (SWP) as further described

below;4. changes in the District’s SWP water supply contract per the Monterey Agreement to improve reliability and reduce

water supply shortages;5. completion of the 41,000 acre-feet water transfer to Castaic Lake Water Agency under the Monterey Agreement thereby

relieving customers of high costs for often unusable water supplies;6. acquisition and implementation of three groundwater banking projects, including a 24% share of the Kern Water Bank;

serving as the District’s alternate representative to the Kern Water Bank Authority and attending most meetings thereof;7. execution of long term water supply purchase agreements with Yuba County Water Agency and the County of Butte

to supplement the District’s water supply portfolio;8. two refinancings of District bonds to lower bond debt service obligations to customers; and complete payoff of the

District bonds in 2015;9. efforts to create options for landowners for participation or non-participation in the Delta Conveyance Project (successor

to the California Water Fix and Bay-Delta Conservation Plan) due to its uncertainty and high cost for agriculture;10. completion of District capital projects to (a) replace all District booster pumps after 45 years of service, and (b) remodel

and expand the District Headquarters Office to bring the Office to current building codes, correct various deficienciesand provide for a modern and efficient office and staff for the future;

11. changes to the District’s groundwater banking policies to (a) ration recovery of such supplies and lengthen the period

Agenda Item 8.8

of positive balance banking project accounts, and (b) allow Water User use of Kern Water Bank recharge and recoverycapacity on a second priority basis;

12. funding for the Committee for Delta Reliabilty to improve the state of science for the Sacramento-San Joaquin in anattempt to mitigate unwarranted reductions in the District’s SWP supply;

13. maintaining a healthy level of Reserve Funds for various purposes to insulate customers from some costs which wouldotherwise require placement on customer bills;

14. through the Budget and Finance Committee, maintaining an unbroken succession of “clean” opinions from the District’sAuditors whose annual financial statements presented “fairly, in all material respects, the financial position of theDistrict”, which position remained strong through the present;

15. development of a highly regarded customer service oriented staff to construct, maintain, operate and administer theDistrict’s water distribution and water supply systems to a high standard of performance, reliability, and cost -effectiveness.

WHEREAS, Mr. Mullins was, as the District’s representative, the Chair of the Kern Groundwater Authority which wasestablished to develop Groundwater Management Plans and coordinate these Plans under the Sustainable GroundwaterManagement Act within Kern County in order to avoid State administration of the local groundwater basin; given the variedgroundwater conditions, multiple jurisdictions and personalities and tremendous impacts of SGMA implementation, finding apath to success was among the most challenging Kern water matters in recent history; Mr. Mullins brought and used a uniqueskill set to this challenge which skills included legal expertise, keen intellect, broad knowledge of local jurisdictions andconditions, intensity, ability to comprehend and communicate complex issues, deep care for the impacts on the local community,and fearless leadership on difficult issues; there was widespread respect and appreciation for Mr. Mullins exercise of these skillsto push the sometimes contentious parties toward success; his untimely passing from this role was mourned;

WHEREAS, Mr. Mullins’ legal and business acumen and experience, strategic vision and understanding, ability to define theessence of complex issues, and direct speech and assertiveness regarding matters before the Board and the District’s interestsin public forums also benefitted the District’s customers and provided useful guidance to staff; Mr. Mullins did not mince wordswhen the occasion called for it; many staff and Directors regarded him as the voice of reason in discussions of policy matters;

WHEREAS, Mr. Mullins attended at least six (6) courses in AB-1234 Ethics Training as a Director, so he was pretty good atit;

WHEREAS, Mr. Mullins was a valued part of the District’s employee “family” as he attended employee functions such asChristmas parties, Employee Recognition Dinners, and retirement events;

WHEREAS, Mr. Mullins successfully discharged his responsibilities with honesty, integrity, fairness, a focus on policies forthe overall benefit of all District customers, and a no-nonsense approach while demonstrating a commitment to improve the watersupplies of the District and Kern County for the benefit of the farming and general communities;

WHEREAS, the delivery of water to farmers to grow food and fiber for the citizens of the state, nation, and world is noble andpraiseworthy work, and Mr. Mullins has cared deeply about this work and has enabled it with loyalty, dedication, and excellenceto the benefit of the District, its employees, and its customers; and

WHEREAS, Mr. Mullins completed his last term as Director on November 6, 2019, after having served the District and itsfarming customers for 22 years.

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors, on behalf of itself, the employees, customers, andlandowners of the District, does hereby express to Dennis Mullins and his family its thanks and appreciation for his many yearsof outstanding service which will be greatly missed; and

BE IT FURTHER RESOLVED that the Board of Directors extends its sincere condolences to the family of DennisMullins.

ALL OF THE FOREGOING being on motion of Director _____________, seconded by Director __________, andadopted by the following vote, to wit:

AYES:NOES:ABSENT:ABSTAINING:

I HEREBY CERTIFY that the foregoing resolution is the resolution of said District as duly adopted by said Board ofDirectors on the 11th day of December, 2019.

WITNESS my hand and the seal of the Board of Directors this 11th day of December, 2019.

_____________________________ Jose MarinSecretary of the Board of Directors

(filename S:\Management\Shared_AA\Board Mailing DEC 11, 2019\8.8 Commendation_Mullins.wpd)


Agenda Item 8.9

MEMORANDUM




SUBJECT: Designate District Representatives to Fill Various Vacancies

Mr. Bill Taube has been serving the District in a number of roles since his retirement in 2010. He has notified the District that he will be stepping down from most of those positions in December, and the remaining the first part of 2020. As Mr. Taube serves at the behest of the Engineer-Manager, Mr. Taube will be replaced on these roles as follows:

ENTITY REPLACEMENT-------------------------------------------- -----------------------------------------------------ACWA Board No replacementCross Valley Canal Member Unit Representative (filled by the

Agency, I am the current alternate)Ag Energy Consumers Assoc. SuggsKGA KWB representative (filled by KWB Board)South Valley Water Resources Auth. NicholasWater Association of Kern County Nicholas

In addition, Mr. Taube has served as the District Representative on the Kern Water Bank Boardof Directors since its inception. Currently President Atkinson is the first Alternate, and I havebeen serving as the second Alternate for a number of years. Absent any objections, Mr. SheridanNicholas shall be appointed as the District’s designee to serve on the Kern Water Bank Board ofDirectors.


Agenda Item 8.10a

MEMORANDUM


FROM: Robert Kunde


SUBJECT: First Amendment to the “2019 Reservoir Project Agreement”

In February 2019, the Board of Directors authorized execution of that certain “2019 ReservoirProject Agreement”. It authorized participation in Phase 2A of the Sites Reservoir Project by theDistrict on behalf of four District Waters Users who agreed to fund said Phase per the “2019Sites Reservoir Project, Phase 2A Grower Participation Agreement” entered into between theDistrict and those Water Users. Phase 2A was to be effective from April 1 to December 31,2019. The goal of Phase 2A was to narrow the range of uncertainty in the Project cost, yield andassurances in order to make decisions for the next Phase of funding beginning January 1, 2020.

Many of the 21 Phase 2A Project Agreement Members feel that current range of uncertainty isnot sufficiently narrow to make a funding decision of the 2020 Phase. Some MemberRepresentatives, including myself, do not think significant additional certainty will be gained inthe next six months. Nonetheless, at the November 21, 2019, meeting of the Sites ReservoirProject Committee, the Committee approved distribution of the attached First Amendment toProject Agreement Members.

The First Amendment would extend the current 2019 Reservoir Project Agreement through June30, 2020. No new or additional obligations or additional funding from Members (the District) orthe four funding Water Users is required under the First Amendment.

The Grower Participation Agreement caps District administrative costs to be paid by the fourWater Users at $16.00 per acre-foot of participation i.e. the anticipated costs through December2019. This sum will not be sufficient to cover the costs of the typical level of Districtparticipation in Sites matters (the administrative costs) through June 2020. Discussions will beheld with the Water Users on this matter with the options being (a) amend the GrowerParticipation Agreement to increase the cap, or (b) substantially reduce District staffparticipation for the January to June 2020 period to remain within the cap.

Recommendation. It is recommended the Board authorize the Board President to execute theFirst Amendment.

Attachment(filename S:\Management\Shared_AA\Board Mailing DEC 11, 2019\8.10 Sites Memo B_D_Dec2016.wpd)

Page 1 of 1

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FIRST AMENDMENT TO 2019 RESERVOIR PROJECT AGREEMENT

BY AND AMONG

SITES PROJECT AUTHORITY

and

THE PROJECT AGREEMENT MEMBERS LISTED HEREIN

Dated as of January 1, 2020

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THIS FIRST AMENDMENT TO RESERVOIR PROJECT AGREEMENT (this “First Amendment”), dated as of January 1, 2020, by and among SITES PROJECT AUTHORITY, a joint powers authority duly organized and existing under the laws of the State of California (the “Authority”), and the project agreement members listed in the Original Agreement referenced below (the “Project Agreement Members”) and amends that certain 2019 Reservoir Project Agreement dated as of April 1, 2019 (the “Original Agreement”), by and among the Authority and the Project Agreement Members;

WITNESSETH:

WHEREAS, Authority and the Project Agreement Members have determined to extend the term of the Original Agreement to June 30, 2020; and

WHEREAS, under Section 11 of the Original Agreement, the Original Agreement may be amended by a writing executed by the Authority and at least 75% of the total weighted vote as provided in Subsection 3(g) of the then-current Committee members; and

WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and the entering into of this First Amendment do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this First Amendment;

NOW, THEREFORE, THIS FIRST AMENDMENT WITNESSETH, the Authority and the Project Agreement Members agree, as follows:

ARTICLE I

DEFINITIONS

Section 1.01. Definitions. All capitalized terms not otherwise defined herein shall have the meaning set forth in the Original Agreement.

ARTICLE II

AMENDMENTS TO 2019 ORIGINAL AGREEMENT

Section 2.01. Amendments to Section 8(b) of the Original Agreement.

(a) The reference in Section 8(b) of the Original Agreement to December 31, 2019 shall be changed to June 30, 2020. In the event that this First Amendment is not approved by Project Agreement Members with the requisite percentage of the total weighted vote as set forth in the Original Agreement by December 31, 2019, the Original Agreement shall be revived immediately upon approval by such requisite percentage, without any additional approval of the Project Agreement Members, and this First Amendment shall become effective.

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ARTICLE III

MISCELLANEOUS

Section 3.01. Effectiveness of Original Agreement. Except as expressly amended by this First Amendment, the Original Agreement is hereby ratified and confirmed and shall continue in full force and effect in accordance with the terms and provisions thereof. The amendments set forth in this First Amendment shall be incorporated as part of the Original Agreement upon their effectiveness in accordance with Section 11 of the Original Agreement.

Section 3.02. Execution in Several Counterparts. This First Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts, or as many of them as the Authority and the Project Agreement Members shall preserve undestroyed, shall together constitute but one and the same instrument.

Section 3.03. Laws Governing First Amendment. The effect and meaning of this First Amendment and the rights of all parties hereunder shall be governed by, and construed according to, the laws of the State.

S-1

IN WITNESS WHEREOF, the Authority and Project Agreement Members hereto, pursuant to resolutions duly and regularly adopted by their respective governing bodies, have caused their names to be affixed by their proper and respective officers on the date shown below:

Dated: _______________ SITES PROJECT AUTHORITY

By: _______________________________ Name: Title: [PROJECT AGREEMENT MEMBER]

Dated: _______________

(Authority & Project Agreement Member)

By: _______________________________ Name: Title: