HomeMy WebLinkAbout98-170BC}A[~C3 Off" ~UPER1lis0R5 ~'
COUNTY OF BUTfE, STATE OF CALIFORNIA
RESOLUTION NO. 98-170
RESOLUTION AUTHORIZING THE CHAIR OF THE BOARD
TO EXECUTE AND DELIVER AMENDMENT NUMBER 14
TO THE STATE WATER CONTRACT TO THE
CALIFORNIA DEPARTMENT OF WATER RESOURCES
WHEREAS, the County of Butte ("County"} is a party to a cantract dated
December 26, 1963 between the County and the State of California,
Department of Water Resources ("State"} (°~~~ater Supply Agreement"} ; and
WHEREAS, the Water Supply Agreement is substantially identical to
agreements between the State and 28 other public entities in California,
each of which is known as a State Gvater Contractor; and
WHEREAS, the Water Supply Agreement between the State and the County
has been amended on thirteen (13} separate occasions since its execution;
the last of such amendments being referred to as the Monterey Agreement;
and
WHEREAS, the State Water Contractars and the State wish to clarify
certain portions of the Monterey Agreement and solve problems created by
its implementation; and
WHEREAS, intensive negotiations among the above referenced interested
parties were conducted between August 1998 and November 1998 and those
negotiations culminated in an agreed upon set of contract amendments which
clarify certain portions of the Monterey Agreement and solve problems
created by its implementation; and
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LtiTHEREAS, a full Environmental Impact Report, including Findings and
Mitigation Measures for Implementation of the Monterey Agreement Principles
was completed and adopted and determined to be true by this Board at the
time i.t approved the Monterey Agreement; and
rti7HEREAS, the full Environmental Impact Report for the Monterey
Agreement included a Monterey Agreement Principles Implementation
Environmental Mitigation Monitoring Program which was adopted and approved
by this Board at the time it approved the Monterey Agreement; and
Gti'HEREAS, attached to this Resolution as Exhibit A is Amendment Number
14 to the t~7ater Supply Agreement which incorporates the set of contract
amendments agreed to by the State and the State Water Contractors between
August 1998 and November 1998 {"Amendment"} and
WHEREAS, the above referenced interested parties have taken steps to
ensure that all requirements of the California Environmental Quality Act
of 1970 (CEQA) are satisfied with regard to Amendment Number 14 to the
Water Supply Agreement;
NOG~1, THEREFORE, BE IT RESOLVED, that:
1. The following Findings pursuant to the California Environmental Quality
Act of 1970 are hereby adopted and determined to be true:
a. The activities described in Amendment Number 14 have no potential
for resulting in a reasonably foreseeable physical change in the
environment, direct or indirect, as defined in CEQA Guidelines
15061{b){3}, 15378 and 15382 and are therefor exempt from CEQA.
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b. `I'he activities described in Amendment Number 14 constitute the
establishment, modification, structuring, restructuring, and approval of
rates and charges pursuant to CEQA Guideline 15273, or
c. are ministerial.
2. Amendment Number 14 in the form of the attached Exhibit A,
with such changes as may be approved by the Chair and County
Counsel of the County, is hereby approved.
4. The Chair is authorized to execute and deliver Amendment
Number 14 to the State for execution.
5. The Clerk of the Board is hereby authorized and directed to
file and post the Notice of Exemption attached as Exhibit B
pursuant to CEQA and submit a copy of this notice to the Governor`s
Office of Planning and research for filing, upon notice that
Amendment Number 14 has been implemented by the State.
6. County Counsel is Hereby authorized to send a letter to the
Department of Ts~ater_ Resources stating that the County intends, at
this time, to request an entitlement reduction of about 24,500 acre
feet far the years 2001 through 2005.
7. This Resolution shall take effect immediately.
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PASSED AND ADOP`PED by the Board of Supervisors of the
County of Butte, State of California, on the 1st day of December
~~998 by the following votes:
AYES: Supervisors Beeler, Dolan, Houx, Josiassen and Chair Davis
NOES : None
ABSEN'T' : None
NO'T' VO`T'ING :None
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- ~,
ATTESTED:
Fred C. Davis, Chair..
Butte County Board of Supervisors
JOHN BLACKLOCK
Chief Administrative Officer
and thye~ Clerk of th_e Board
Bye- / 't';j` ~ -~~ -=~-~' -~ ` ~~=- %--
zvm: Monterey:
STATE OF CALIFORNIA
THE RESOURCES AGENCY
DEPARTMENT OF WATER RESOURCES
AMENDMENT NO. 14
TO WATER SUPPLY CONTRACT BETWEEN THE
STATE OF CALIFORNIA DEPARTMENT OF
WATER RESOURCES AND THE COUNTY OF BUTTE
THIS AMENDMENT to the Water Supply Contract is made this 1st day of
December, 1998, pursuant to the provisions of the California Water Resources
Development Bond Act, the Central Valley Project Act, and other applicable laws of the
State of California, between the State of California, acting by and through its
Department of Water Resources, herein referred to as the "State", and the County of
Butte ,herein referred to as the "County".
RECITALS:
WHEREAS, the State and the County have entered into and subsequently
amended a water supply contract providing that the State will supply certain quantities
of water to the County, and providing that the Gounty shall make certain payments to
the State, and setting forth the terms and conditions of such supply and such payment;
and
NOW THEREFORE, IT IS MUTUALLY AGREED that the fallowing changes
and additions are hereby made to the County's water supply contract with the State:
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1. Amend Article 7(a) to read:
(a} Change in Annual Entitlements
(1) The County may, at any time or times during the term of this contract, by
timely written notice furnished to the State, request that project water be made available
to it thereafter in annual amounts greater or less than the annual entitlements
designated in Table A of this contract. Subject to approval by the State of any such
request, the State's construction schedule shall be adjusted to the extent necessary to
satisfy the request, and the requested increases or decreases in said annual
entitlements shall be incorporated in said Table A by amendment thereof. Requests far
changes in annual entitlements for more than one year shall be approved by the State:
Provided, That no change shall be approved if in the judgment of the State it would
impair the financial feasibility of project facilities or the financial integrity of the project.
{2) Without further limiting the total amount of entitlement reductions that may be
made under subdivision ja)(1) of this article reductions in Table A annual entitlements
improved by the State and included in the Table A Reduction Charge authorized by
Article 22(~ shall be subject to the following additional limitations:
1 Total reductions of annual entitlements for all contractors shall not,_in
ank.aiven year exceed 120 000 acre-feet If the State receives timely requests for
reductions in excess of 120 000 acre-feet the pending reductions for each vear
requested shall be~rorated up to the amount of the request based upon the ratio of
the re~uestina contractor's maximum annual entitlement to the total maximum annual
entitlements of all requestinq contractors excludina from both numbers entitlements
purchased pursuant to Article 53 The State shall afford the County an opportunity to
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request a reduction in annual entitlements of at least 2 000 acre-feet prior to the time
that requests totaling_120 000 acre-feet are first approved.
Vii) The Count's request for reductions shall not exceed 50 000 acre-feet
for any one year.
(iii) The reduction in annual entitlement must be for a minimum of five
years and shall not vary in amount b~ more than 10 percent per year cumulatively
during the first five~ear period based on the initial year's reduction amount. After
approval the annual entitlement for the first five years of the schedule shall not be
changed.
Div) The State shall develop and disseminate to the contractors a sche~~,~
for makin~c and approving reauests pursuant to this subdivision.
2. Amend Article 12(f) to read:
12~f)• The priorities listed in this subsection shall not be applied to the extent
such application would reduce pro.~ect water supplies available for use in and above.
and for export from, the Delta.
To the extent
there are conflicts in contractors' deliveries through project transportation facilities,
deliveries shall be in accordance with the following priorities:
First, project water, including Pool purchases pursuant to Article 56(d). to meet
scheduled deliveries of contractors' annual entitlements for that year, delivered within
the maximum monthly delivery rates provided far in their contracts.
Second, interruptible water to the extent contractors' annual entitlements for that
year, delivered within maximum monthly delivery rates provided for in their contacts. are
not met by the first priority.
Third, project water to fulfill delivery requirements pursuant to Article 14(b).
Fourth, project water previously stored pursuant to Articles 12(e) and 56,
delivered within the maximum monthly delivery rates provided far in their contracts.
Fifth, nonproject water to fulfill contractors' annual entitlements for that year,
delivered within the maximum monthly delivery rates provided for in their contracts. to
the extent such annual entitlements are not met by the first two priorities.
Sixth, project and nonproject water, for deliveries to those contractors who have
agreed to ~av both retroactively and prospectively the char eq s required by Article 53(kl
for entitlement purchases, up to the amount of purchased entitlement for that year and
within the maximum monthly delivery rates used in such pavment determinations.
Seventh,.pro,~ect and nor~roject water for deliveries to those contractors who
have agreed to pay both prospectively only the charges required by Article 53(k) for
entitlement purchases into the amount of purchased entitlement for that year and
within the maximum monthlX delivery rates used in such payment determinations.
Eiahth, additional i~r~er-r~tibfe project water deliveries to contractors in excess of
their annual entitlements for that year, or in excess of the maximum monthly rates
provided for in their contracts.
Ninth. additional nonproject water deliveries dt~li~ter~ to contractors in excess of
their annual entitlements far that year, or in excess of the maximum monthly delivery
rates~rovided far in their contracts.
If all deliveries requested within any of the priorities except priorities six and
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seven cannot be made deliveries to those contractors so affected shall be scheduled
in proportion to those contractors' then present maximum annual entitlements
excluding entitlements permanently transferred pursuant to Article 53 for which
charges are required pursuant to Article 53t'k).
If all deliveries requested within either priority six or seven cannot be made deliveries to
those contractors so affected shall be scheduled in proportion to their increases in the
maximum annual entitlements resulting from purchases by those contractors.
Deliveries for which a use of facilities fee is charged shall be made only if all deliveries
in the priorities listed in this subdivision (fl are not adversely impacted.
3. Amend Article 18{f) to read:
Neither the State nor any of its officers, agents, or employees shall be liable for
any damage, director indirect, arising from shortages in the amount of water to be
made available for delivery to the County under this contract caused by application of
the priorities in Article 12(f) or by drought, operation of area-of-origin statutes, or any
cause beyond its control.
4. Amend Article 21 (b) to read:
For any interruptible water delivered pursuant to this article, contractors shall pay
the State the same (including adjustments) for power resources (including on-aqueduct,
off aqueduct and any other power) incurred in the transportation of such water as if
such interruptible were entitlement water, as well as all incremental operation,
maintenance, and replacement costs, and any other incremental costs, as determined
by the State. The State shall not include any administrative or contract preparation
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charge. Incremental costs shall mean those nonpower costs which would not be
incurred if interruptible water were not scheduled for or delivered to the contractor.
ae~r: A use of facilities charge for a contractor's use of project facilities
for the delivery of interruptible water shall be imposed whenever such fee would be
charged for deliver}~of other ~roiect water.
5. Add a new subdivision (k) to Article 22 to read:
(k)(1) In an}~vear beginning with 2000 if the State, pursuant to the review
conducted under Article 51(x, determines that requests for reductions of Table. A
annual entitlements pursuant to Article 7(a)(2) cannot be approved without adversely
affecting other State obligations, including those in Article 51(c~, the State may add to
the Agency's annual statements of charges a charge denominated "Table A Reduction
Charge." The Table A Reduction Charge shall be the amount required to recover
revenue shortfalls resulting from reductions in Table A annual entitlements pursuant._t~
Article 7(x(2). The Table A Reduction Charge shall be allocated among those
contractors having this Article 22(k~, in their contracts in proportion to their Table A
annual entitlements for that year and shall be collected in the manner and on the sarn~
terms and conditions as other charges under this contract.
(2) In an~vear in which a Table A Reduction Charge has been added to an
Agricultural Contractor's statement of charges, such Table A Reduction Charge may,
upon the contractor's request be treated as reducing by up to but not exceeding an
equal amount the obligation of such contractor for that year to make payments into the
charge. Incremental costs shall mean those nonpower casts which would not be
incurred if interruptible water were not scheduled for or delivered to the contractor.
#~~eag A use of facilities charge for a contractor's use of project facilities
for the deliver~of interruptible water shall be imposed whenever such fee would be
charaed for delivery of other project water.
5. Add a new subdivision (k) to Article 22 to read:
~kl(1) In an~vear beginning with 2000 if the State, pursuant to the review
conducted under Article 51 ~) determines that requests for reductions of Table A
annual entitlements pursuant to Article 7(a)f2) cannot be approved without adversely
affectina other State obligations including those in Article 51(c). the State may a d to
the Agency's annual statements of charges a charge denominated "Table A Reduction
Charge " The Table A Reduction Gharae shall be the amaunt required to recover
revenue shortfalls resulting from reductions in Table A annual entitlements pursuara~ fi~
Article 7(a~(27 The Table A Reduction Gharae shall be allocated amona those
contractors having this Article 22(k) in their contracts in proportion to their Table A
annual entitlements for that year and shall be collected in the manner and on the same
terms and conditions as other charges under this contract.
(2) In any near in which a Table A Reduction Charge has been added to an
Agricultural Contractor's statement of charges such Table A Reduction Gharae may.
upon the contractor's request be treated as reducing by up to but not exceeding an
eaual amount the abligatian of such contractor for that year to make aavments into the
(,.
Agricultural Rate Management Trust Fund. To the extent that such contractor has
already made...payments to the trust fund in an amount in excess of such contractor's
reduced trust fund ~avment obligation such contractor may request the trustee to use
the excess from the trust fund to pa~the Table A Reduction Charge. This subdivision
220(2) shall be effective one if the Agricultural Rate Management Trust Fund
Agreement is amended to conform to this subdivision.
6. Add Article 30 to read:
A contractor shall be charged a use of facilities charge as determined by the
State only for use of those protect transportation facilities for which it is not participating
in repayment.
7. Amend Article 51(f}(2)(ii) to read as follows:
51(f)(2)(ii) The transportation capital cost component repayment obligations, for
purposes of this Article 51(f), shall be based in the year of recalculation on the then
most recent Department of Water Resources Bulletin 132, Table 8-15, "Capital Cost
Component of Transportation Charge for Each Contractor," or its equivalent, excluding
any costs of entitlement associated with transfers of entitlement from Agricultural
Contractors pursuant to Article 53, except that for purposes of this subdivision no
facilities involving the addition of new capital casts associated with any project not using
the project interest rate shall be added to the com._..putation other than the Coastal
Extensian and the East Branch Extension Phases 1 and 2.
8. Add Subdivision (h)(4)(iv) to Article 51 to read:
In addition to the~rovisions of subdivision (h)(4}iii} of this article, if on or before
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June 30 of an~vear in which Tulare has not previously made a request to the Trustee,
any of the irrigable land within Tulare has been flooded in that year or is flooded and
Tulare in writing requests the Trustee to do so. the Trustee shall, to the extent there are
funds in Tulare's account distribute to the State from such account for the benefit of
Tulare an amount equal to the percentage of the total of Tulare's statement of charq~s
for that year. as redetermined by the State on ar about May 15 of that year for (a} the
Delta Water Charge. (b} the capital cost and minimum components of the
Transportation Charge (including off-aqueduct power charges}, and (c} the Water
System Revenue Bond Surcharge that is equal to the percentage of the irrigable land
within Tulare that was flooded or not timely planted due to flooding prior to June 30 of
that year. This subdivision (h)(4}(iv} shall be effective only if the Agricultural Rate
Management Trust Fund Agreement is amended to permit the distributions provided for
herein.
9a Amend Article 53 by amending 53(f), 53(g), 53{h} and by adding 53(k)
53{f) Upon the effective date of any such transfer, the seller shall be relieved of
and the buyer shall become liable to the State for all prospective Delta Water Chargesfl
the related Transportation Charges and any other charges for the annual entitlements
and associated transportation rights transferred unless the seller and buyer provide
otherwise in the contract far the transfer and the State approves such other provisions.
However, the contractor making the sale shall remain obligated to the State to make the
payments if the buyer defaults on its payments to the State related to the water
transferred and is not a party to a long term water supply contract of the type contained
in Department of Water Resources Bulletin Number 141. If the contractor making the
sale is required to make any payments to the State as a result of the buyer's default,
the entitlement transferred to the defaulting buyer shall, if provided for in the Proposed
Contract, revert back to the contractor making the sale. The buyer may also be liable
for any charges imposed pursuant to subdivision {~} (k) of this article. All payments
received by the State from the seller relating to the annual entitlement sold shall be
deemed to have been received from the buyer contractor. Any charges attributable to
the purchase shall begin January 1 of the year following the effective date of the
transfer.
53(g) A contractor which is a buyer of annual entitlement pursuant to this article
may receive deliveries using any portion of the capacity previously provided by the
State in each reach of the project transportation facilities for such contractor that is
necessary for transporting the entitlement purchased by it on the same basis as any
other entitlement provided for in its Table A in effect prior to the date of the Monterey
Amendment. Such contractor may also use any transportation rights transferred to it by
a seller in the same manner as the seller was entitled to use them. Such contractor
may also use its excess capacity. andpurchased excess capacity, and any newly
constructed facilities paid for bkthe contractor necessary for the entitlement purchased
by it on the same basis as any other entitlement provided for in its Table A in effect
prior to the date of the Monterery Amendment. Purchased entitlement delivered in the
reaches specified in this paragraph shall be treated as annual entitlement for purposes
of delivery_.priorities in Article 12(f~.
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53(h) Individual contractors may transfer entitlements among themselves in
amounts in addition to those otherwise provided for in this article. The State shall
expeditiously execute any necessary documents and approve all contracts involving
permanent sales of entitlements among contractors, including permanent sales among
Urban Contractors. Such sales shall be subject to the provisions of subdivisions (b), (f)
and (g) and k of this article; ,
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53(j) [Reserved for future use]
53(kl(11 Subject to the conditions set forth in subdivisionl~of this article, a contractor
purchasing entitlement under subdivisions{a~ or{,h~ of this article needing transportation
capacity in excess of the capacity factors on which its charges are based in any reach
may take delivery of its purchased entitlement from those project transportation facilities
at the same maximum monthly delivery rates provided for in its contract prior to the
purchase The State shall not be responsible for any resulting adverse impacts upon its
ability to provide such contractor peaking capacity. On ,January 1 of the year fallowing
the effective date of the transfer, the buyer shall became liable to pay an amount
substantially equivalent to the prospective capital cost and minimum operation,
maintenance power and replacement components of the Transportation Charge for
each reach specified in this subdivision{k){~ through which the purchased entitlement
will be delivered In addition the buyer contractor shall pay to the State the
rooortionate share of the prost~ective Water Svstem Revenue Bond Surcharge
associated with the purchased entitlement. Except as provided in subdivision{k){2] of
this article a contractor shall also pay retroactively the capital cost component of the
Transportation charge and as determined by the State the proportionate share of the
retroactive Water System Revenue Bond Surcharge associated with the purchased
entitlement.
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(2) If transportation capacity in excess of the capacitX factors on which its char eq s are
based in any reach are required for a contractor purchasing a portion of the 130.000
acre feet of entitlement described in subdivision(a} of this article or a portion of the
approximate 33.000 acre feet of transfers proposed from contractors located in Santa
Barbara or San Luis Obispo Counties. prior to the purchase. or as soon thereafter as
possible if the purchase occurred prior to this amendment. the buyer contractor shall
make cone-time election whether or not to pay retroactively the applicable capital cost
component of the Transportation Charge and. as determined by the State. the
applicable Water System Revenue Bond Surcharge in addition to the prospective
charges described in subdivision(ku1 } of this article. For a contractor purchasing
entitlement other than (I} the 130,000 acre-feet provided for in subdivision(a) of this
article and (ii} the approximate 33.000 acre-feet of transfers proposed from contractors
located in Santa Barbara or San Luis Obispo counties, if transportation capacity in
excess of the capacity factors on which its charges are based in any reach are required.
reallocation of the Transportation capital cost component charges for transfers shall be
determined both prospectively and retroactively and the buying contractor may not elect
to.pakpros ectively onik.
(3) Contractors charged retroactively pursuant to subdivision(k}(21 of this article shall be
entitled to receive delivery of that water under a priority higher than a contractor paying
prospectively only, as provided in Article 12tf).
,(4~ The charges as determined by the State and imposed under subdivision (k) of
this article shall be collected in the same manner and on the same terms and conditions
as the Tran~ortation Charge and the Water System Revenue Band Surcharge.
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Notwithstanding the foregoing and notwithstanding Article 28(f) and Article 50(d~ the
retroactive Water System Revenue Bond Surcharge payments referred to in subdivision
(k} of this article may be paid on an amortized basis as described in Article 28~e~The
Transportation Gharges collected under subdivision shall be proportionately credited to
the other contractors participating in re,.payment of the reaches. The
retroactive Water System Revenue Bond Surcharges collected under subdivision(k) of
this article shall be proportionately credited to all contractors who paid those Water
System Revenue Bond Surcharge amounts.
~ A contractor which purchased entitlement between 1980 and 1994. and also
purchases entitlement after October 1 1998 and elects to pay the applicable charges
retroactively as provided in subdivision(k)(2) of this article for the purchase of a like
amount of purchased entitlement after October 1.1998, shall be entitled to receive
deliveries of that amount on the same priority as the newly purchased entitlement under
subdivision(k)(2) of this article.
10. Amend Article 55 to read:
55. (a) Subject to ~ Article 12(f), contractors shall have the
right to receive services from any of the project transportation facilities to transport
water procured by them from nonproject sources for delivery to their service areas and
to interim storage outside their service areas for later transport and delivery to their
service areas: Provided, that except to the extent such limitation in Section 12931 of the
Water Code be changed, a contractor shall not use the project transportation facilities
under this option to transport water the right to which was secured by the contractor
through eminent domain unless such use be approved by the Legislature by concurrent
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resolution with the majority of the members elected to each house voting in favor
thereof.
(b) For any nonproject water delivered pursuant to this article, contractors shall
pay the State the same (including adjustments) for power resources (including on-
aqueduct, off-aqueduct, and any other power) incurred in the conservation and
transportation of such water as if such nonproject water were entitlement water, as well
as all incremental operation, maintenance, and replacement costs, and any other
incremental costs, which may include an administrative or contract preparation charge,
all as determined by the State. Incremental costs shall mean those non power costs
which would not be incurred if nonproject water were not scheduled for or delivered to
contractors.
. A use of facilities charge for a contractor's use of project
facilities for the delivery of nonproject water shall be imposed whenever a fee would be
charged for delivery of project water. Gosts for transporting water placed into interim
storage shall be paid in the same manner provided for in Article 56 (c)(6).
11. Amend Article 56(c}{6) to read:
56(c)(6) For any project water stared outside its service area pursuant to this
subdivision {c), a contractor shall pay the State the same (including adjustments) for
power resources (including on-aqueduct, off-aqueduct, and any other power) incurred in
the transportation of such water as the contractor pays for the transportation of annual
entitlement to the reach of the project transportation facility from which the water is
l ~t
delivered to storage. If annual entitlement is stored, the Delta Water Charge shall be
charged only in the year of delivery to interim storage. For any stored water returned to
a project transportation facility for final delivery to its service area, the contractor shall
pay the State the same for power resources (including on-aqueduct, off-aqueduct,
and any other power) incurred in the transportation of such water calculated from the
paint of return to the aqueduct to the turn-out in the contractor's service area. In
addition, the contractor shall pay all incremental operatian, maintenance, and
replacement costs, and any other incremental costs, as determined by the State, which
shall not include any administrative or contract preparation charge. Incremental costs
shall mean those non power costs which would not be incurred if such water were
scheduled for or delivered to the contractor's service area instead of to interim storage
outside the service area.
. Notwithstanding Article 30. A use of facilities charge
for a contractor's use of project facilities for the delivery of water to or return of water
from interim storage shall be imposed only if neither the contractor for wham the water
is stored nor the contractor storing_the water has participated in the repayment of such
protect facilities.
12. Amend Article 56(d)(7) to read:
56(d)(7) For any water delivered from the Pool to contractors, the buyer shall pay
the State the same for power resources (including on-aqueduct, off-aqueduct, and any
other power) incurred in the transportation of such water as if such water were
entitlement water, as well as all incremental operation, maintenance, and replacement
15
costs, and any other incremental costs, as determined by the State, which shall not
include any administrative or contract preparation charge. Incremental costs shall mean
those non power costs which would not be incurred if such water were not scheduled
for or delivered to the buyer.
. A use of facilities charge for a
contractor's use of protect facilities for the delivery of Pool water shall be imposed
whenever such fee would be charged for delivery of other project water Adjustments
from estimated to actual costs shall be computed by the State pursuant to these
provisions and shall be paid by the buyer or credited to the buyer at the times and
interest rates described in Article 28{c).
13. Amend Article 56(f) to read:
Nothing in this article shall be deemed to prevent the County from entering into
bonafide exchanges of project water for use outside the County's service area with
other parties for project water or nonproject water if the State consents to the use of the
project water outside the County's service area. Also, nothing in this article shall be
deemed to prevent the County from continuing those exchange or sale arrangements
entered into prior to September 1, 1995, which had previously received any required
State approvals. A "bona fide exchange" shall mean an exchange of water involving a
contractor and another party where the primary consideration for one party furnishing
16
water to another is the return of a substantially similar amount of water, after giving due
consideration to the timing or other nonfinancial conditions of the return. Reasonable
payment for costs incurred in effectuating the exchange and reasonable deductions
from water delivered, based on expected storage or transportation losses may be
made. A "bonafide exchange" shall not include a transfer of water from one contractor
to another party involving a significant payment unrelated to costs incurred in
effectuating the exchange. The State, in consultation with the contractors, shall have
authority to determine whether transfers of water constitute "bona fide exchanges"
within the meaning of this paragraph and not disguised sales. Notwithstanding article
30. A use of facilities charge for a contractor's use of~ro~ect facilities for delivery or
return of exchange water shall be imposed only if neither contractor r~articipatina in the
exchange has participated in repayment of such project facilities
14. Any use of facilities fee charged prior to this amendment for interim storage
under 56(c)(6) shall be credited back to the contractor which paid such fee if the storing
contractor participated in repayment of the reaches used.
15. (a} This amendment and similar amendments to other contractors' water supply
contracts shall not take effect unless on or before December 31, 1999, such
amendments have been executed by the State and by contractors collectively holding a
minimum of 3,755,500 acre-feet in present and future maximum annual entitlements.
Such amendments shall become effective on the date they are executed by the State.
(b) The State shall administer the water supply contracts of any contractors that
do not execute this amendment so that such contractors are not affected adversely or
to the extent feasible beneficially by these amendments of other contractors' water
supply contracts.
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(c) If a court of competent jurisdiction issues a final judgment or order
determining that any part of this amendment or the Monterey Amendment to any
contractor's water supply contract is invalid or unenforceable, all provisions of that
amendment shall be of no force or effect as to such contractor, except as provided in
subdivision (e) of this paragraph.
(d) If any part of this amendment or the Monterey Amendment of the Kern
County Water Agency's or The Metropolitan Water District of Southern California's
contracts is determined by a court of competent jurisdiction in a final judgment or order
to be invalid or unenforceable, this and similar amendments to other contractors' water
supply contracts shall be of na force and effect.
(e) The total invalidity or unenforceability of one contractor's amendment as
provided for in subdivision (c) of this paragraph or of all contractors' amendments as
provided far in subdivision (d) of this paragraph may be avoided only if such invalidity or
unenforceability is explicitly waived in writing signed by the State, Kern County Water
Agency and The Metropolitan Water District of Southern California, and such waiver
shall not be unreasonably withheld. In cases arising under subdivision (c) or {d), the
affected contractor whose amendment has been determined to be partially invalid or
unenforceable must first request the waiver.
[signature block)
tn~.e n
1$
NQTICE OF EXEMPTION
To: Office of Planning & Research
1400 Tenth Street
Sacramento, CA 95$14
From: Clerk of the Board of Supervisors
County of Butte
25 County Center Drive
Oroville, CA 95965
To: County Clerk, County of Butte
25 County Center Drive
Oroville, CA 95965
Activity Title:
Execution of Amendment No. 14 to Water Supply Contract for delivery of State Water Project
water, between the California Department of Water Resources and The County of Butte.
Location -- Specific:
The State Water Project includes facilities located throughout the State of California. The
California Department of Water Resources is headquartered in Sacramento, California. The
local agency executing this Amendment No. 14 (The County of Butte) has its offices at 25
County Center Drive, Oroville, CA 95965. The County of Butte's action is to approve this
Amendment No. 14 and to authorize transmittal of this Amendment No. 14 to the County
Clerk, County of Butte for filing and posting and submittal to the Governor's Office of
Planning and Research .
Location -- County:
Butte County
Description of Activity: The California Department of Water Resources (DWR) and Butte
County (Contractor) will execute a certain amendment to the Water Supply Contract between
DWR and Contractor. The Board of Supervisors of The County of Butte is approving the
execution of this Amendment. DWR is extending to each of the contractors to the State Water
Project the opportunity to execute parallel amendments to their Water Supply Contracts. The
purpose of the amendment is to clarify practices of DWR and the various water contractors
regarding operation and interpretation of the State Water Project (SWP} contracts. The
amendment addresses: (1) annual entitlement changes and provisions to recover revenue
shortfalls resulting from requests for entitlement reductions; (2) how potential conflicts in
water delivery priorities will be resolved; (3) fees chargeable to a contractor making a
permanent entitlement purchase and transporting the additional water through DWP
facilities; (4) Tulare Lake Basin Water Storage District's use of its trust fund account to pay
a portion of its annual State Water Project fixed costs; (5) clarification of computation of
transportation capital cast component repayment obligations and (6) facilities use fees
chargeable to contractors transporting water stared outside their service areas or exchanging
water pursuant to existing contract provisions.
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Name of Public Agency Approving or Carrying Out Activity:
Board of Supervisors of The County of Butte and California Department of Water Resources
Exempt Status:
Ministerial
Categorical Exemption. State type and section number: CEQA Guideleines:
15061(b)(3),15261,15273, 15378, 15382.
Statutory Exemption. Fublic Resources Code Sections: 21065, 21080, 21169.
Reasons why activity is exempt:
The Board of Supervisors of The County of Butte finds that the above-described activities have
no potential for resulting in a reasonably foreseeable physical change in the environment,
direct or indirect, as defined in CEQA Guidelines 15061{b}(3), 15378 and 15382. The County
of Butte further finds that the proposals do not constitute a new project subject to CEQA
because they comprise on-going operations and policies of a project and of contracts that pre-
date adoption of CEQA, or constitute the establishment, modification, structuring,
restructuring, and approval of rates and charges pursuant to CEQA Guidelines 15261 and
15273. The proposals do not expand or substantively change the Water Supply Contract being
amended or State Water Project operations, and involve no physical changes in the State
Water Project facilities. Certain of these modifications are ministerial.
Lead Agency Contact Person:
Robert W. MacKenzie
Butte County Counsel's Office
25 County Center Drive
Oroville, CA 95965 Telephone:(530) 538-7621
Signature:
Date:
John S. Blacklick
Clerk of the Board of Supervisors of the County of Butte
Date received for filing at OPR:
Date received for filing and posting by County Clerk:
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