I. RECOMMENDATION:
City Council is hereby recommended to adopt Resolution No. 4303 and approve an agreement to receive up to 700 AF of USBR project water from Westlands Water District on behalf of Gladstone California Water LP on Gladstone properties within Coalinga’s USBR place of use.
II. BACKGROUND:
Over the past years, the City has done many water transfers on behalf of farmers operating within the City’s service area. Typically, water transferred into Coalinga’s service area is from districts other than Westlands Water District. However, this requested transfer is from within Westlands. As a condition for Westlands board of directors to approve the transfer, the board requires a like amount of water to be transferred back into Westlands by the City of Coalinga. Westlands proposed transfer agreement with the City allows 10 years for the water to redelivered to Westlands. This requested transfer is different because other transfer agreements in the past have not required redelivery to the water district originating the water.
III. DISCUSSION:
The City’s service fee to Gladstone for this transfer is increased from the typical $25 per acre foot to $50 per acre foot due to the additional administrative burden of managing and tracking water to be redelivered to Westlands on Gladstone’s behalf into the foreseeable future. The source of the redelivery water will be either a) Future water purchased by Gladstone from the City, or b) Future water transferred in by Gladstone that is not Westlands water. Whichever, the first water in shall be deemed redelivery to Westlands. Language is included for Gladstone to indemnify the City for the City’s risk of redelivery to Westlands.
Minor changes that are non-substantive may be requested by Gladstone in the attached agreement. Any changes shall be reviewed and approved by the City Attorney.
IV. ALTERNATIVES:
The alternative is not to receive water from Westlands Water District on behalf of Gladstone.
V. FISCAL IMPACT:
If all 700 AF are conveyed in January and February, the net benefit to Coalinga’s water rate payers will be $35,000. |