HomeMy WebLinkAboutReso 2021-023 - Authorize Mayor to execute the agreement for partial assignment of water to the City of Shasta Lake RESOLUTION NO. 2021-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT FOR
PARTIAL ASSIGNMENT OF WATER TO THE CITY OF SHASTA LAKE
WHEREAS, the City of Redding and the City of Shasta Lake signed a Water Delivery
Agreement in 2004 to amend their service areas so that the City of Shasta Lake will provide
water service within its incorporated boundaries; and
WHEREAS, the two cities transferred ownership of all water facilities and
appurtenances in said area from the City of Redding to the City of Shasta Lake; and
WHEREAS, the City of Redding, the City of Shasta Lake, and the United States Bureau
of Reclamation (USBR) agree to assign thirty (30) acre-feet of Central Valley Project Water
from the City of Redding to the City of Shasta Lake; and
WHEREAS, the City is required to assign a signatory to execute the Agreement for
Partial Assignment of the City's contract with the USBR;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Redding authorizes and designates the Mayor as signatory for the Agreement for Partial
Assignment of the City's water service contract. (Contract No. 14-06-200-5272A-P).
I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting
of the City Council of the City of Redding on the 16th day of February, 2021, and was duly
adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Dacquisto,Mezzano, Schreder,Winter,and Resner
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
N . RESN , Mayor
ATTEST: APPROVED AS TO FORM:
Cn
PAMELA MIZE, City' lerk BARM-E. 1)vJ*`AtY, City Xttorney
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M&I
Contract No. 14-06-200-5272X-P
(Partial Assignment)
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
Sacramento River. Shasta. and Trinity River Divisions,
Central Valley Proiect, California
AGREEMENT FOR PARTIAL ASSIGNMENT
OF
THE EXISTING CONTRACT BETWEEN THE UNITED STATES
AND CITY OF REDDING
PROVIDING FOR
PROJECT WATER SERVICE AND FACILITIES REPAYMENT TO
THE CITY OF SHASTA LAKE
Table of Contents
Article No. Title Page No.
Preamble..................................................................................................................1
Explanatory Recitals................................................................................................1
1 Incorporation of Recitals.........................................................................................3
2 Terms and Conditions................................................
3 Payment of Existing Operation and Maintenance Deficit.......................................4
4 Contractor Service Area and Points of Diversion.........................
5 Reservation of Interest...................:.........................................................................5
6 Water Rates and Charges.........................................................................................6
7 Termination Clause..........................
8 United States Approval............................................................................................7
9 Agreement Drafting Consideration..........................................................................7
10 Assignment Limited—Successors and Assigns Obligated......................................7
11 Notices.....................................................................................................................7
12 Effective Date..........................................................................................................7
SignaturePage.........................................................................................................8
Exhibit A—Shasta Lake's Service Area Boundary
Exhibit B —Rates and Charges
M&I
Contract No. 14-06-200-5272X-P
(Partial Assignment)
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
Sacramento River, Shasta,and Trinity River Divisions, E
Central Valley Project, California
AGREEMENT FOR PARTIAL ASSIGNMENT
OF
CITY OF REDDING
LONG-TERM RENEWAL WATER SERVICE CONTRACT
PROVIDING FOR PROJECT WATER SERVICE TO
TO
THE CITY OF SHASTA LAKE
1 THIS AGREEMENT, made this day of ,2021, is entered
2 into by and among THE UNITED STATES OF AMERICA("United States")through the
3 Bureau of Reclamation, hereinafter referred to as "Reclamation", CITY OF BEDDING, i
4 hereinafter referred to as"Redding",and the CITY OF SHASTA LAKE, hereinafter referred to r
5 as"Shasta Lake", both public agencies of the State of California,duly organized,existing,and
6 acting pursuant to the laws thereof,with its principal place of business in California. Redding,
7 Shasta Lake,and Reclamation may sometimes be collectively referred to herein as the"Parties"
s and individually as a"Party".
9 WITNESSETH,That:
10 EXPLANATORY RECITALS
11 WHEREAS, On February 22, 1977,Redding and the United States entered into Contract
12 No. 14-06-200-5272A as amended,providing for the annual delivery of up to six thousand one
13 hundred and forty(6,140)acre-feet of water from the Central Valley Project(CVP);and
14 WHEREAS, On April 14, 2005,Redding and the United States entered into Contract No.
15 14-06-200-5272A-LTR1: and
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M&I
Contract No. 14-06-200-5272X-P
(Partial Assignment)
16 WHEREAS, On August 11, 2020, Redding and the United States entered into Contract
17 No. 14-06-200-5272A-P, hereinafter referred to as the"Existing Contract", which provided for
18 the continued water service to Redding and facilities repayment; and
19 WHEREAS, Redding has permanently satisfied the Existing Capital Obligation under the
20 Existing Contract: and
21 WHEREAS, 40 acre-feet under the Existing Contract was intended to provide water
22 service to the "Summit City Pressure Zone"area; and
23 WHEREAS, a portion of the Summit City Pressure Zone area is within the Shasta Lake's
24 contract service area boundary; and
25 WHEREAS, Shasta Lake's and Redding's contract service area boundaries overlap in the
26 Summit City Pressure Zone area; and
27 WHEREAS, Redding and Shasta Lake have entered into a separate assignment
28 agreement entitled"Water Delivery Agreement Between The City of Redding and The City of
29 Shasta Lake"dated July 14, 2004, hereinafter referred to as the Redding-Shasta Lake Agreement.
30 The Redding-Shasta Lake Agreement provides that Redding desires to amend their Service Area
31 boundaries and will assign to Shasta Lake 30 acre-feet of Central Valley Project Water; and
32 WHEREAS, Redding desires to assign a portion of their Project Water(30 acre-feet)
33 under the Existing Contract to Shasta Lake for water service to the Summit City Pressure Zone
34 area and amend their Service Area boundaries to remove the overlap in the Summit City Pressure
35 Zone area; and
36 WHEREAS, the United States is willing to approve the assignment of 30 acre-feet to
37 Shasta Lake subject to the terms and conditions presented below; and
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Contract No. 14-06-200-5272X-P
(Partial Assignment)
38 WHEREAS, Shasta Lake is willing and able to accept the assignment of 30 acre-feet of
39 Project Water under the Existing Contract subject to the terms and conditions presented below.
40 WHEREAS, Redding has requested that Reclamation approve a partial assignment of the
41 Existing Contract to Shasta Lake to provide an additional source of Project Water to Shasta Lake
42 and to remove the overlap in the Summit City Pressure Zone area from their Service Area
43 boundaries; and
44 WHEREAS, Article 30 of the Existing Contract provides for assignment of the Existing
45 Contract upon written approval of the Contracting Officer on behalf of the United States;and
46 WHEREAS, upon the effective date of this Agreement, Redding will assign to Shasta i
47 Lake, Redding's rights, duties, and obligations in that portion of the Existing Contract as it
0
48 relates to, and is for the benefit of thirty (30)acre-feet of Project Water, hereinafter referred to as
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49 the"Assigned Project Water" and the overlap in the Summit City Pressure Zone area will be
50 removed from Redding's Service Area boundaries; and
51 WHEREAS, Redding and Shasta Lake will comply with all applicable federal, state and
52 local laws, rules and ordinances that apply to this Agreement and the Parties will comply with
53 environmental and other laws applicable to this Agreement, including but not limited to,the
54 National Environmental Policy Act and the California Environmental Quality Act.
55 IT IS THEREFORE AGREED AMONG THE PARTIES:
56 1. Incorporation of Recitals. Each of the above Explanatory Recitals is hereby
57 incorporated as a part of this Agreement.
58 2. Terms and Conditions.
59 a. Upon full execution of this Agreement, Shasta Lake acquires all rights,
60 duties, and obligations in the Assigned Project Water for municipal and industrial uses. Shasta
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Contract No. 14-06-200-5272X-P
(Partial Assignment)
61 Lake accepts all terms and conditions included in the Existing Contract, as may be modified or
62 supplemented herein, and as may be modified in accordance with this Agreement and applicable
63 law. Shasta Lake acknowledges and accepts any Additional Capital Obligation(as defined in the
64 Existing Contract) due or that may come due for the Assigned Project Water under the Existing
65 Contract in the manner provided for in the Existing Contract.
66 b. Reclamation's approval of this Agreement shall not constitute a release by
67 Reclamation of Redding from any of its duties and obligations under the Existing Contract as to
68 the full quantity specified in Article 3 thereof. Reclamation will however, consider Shasta Lake
69 separately from Redding as a'Contractor, as that term is used under the Existing Contract,and as
70 to those quantities assigned hereby will hold Shasta Lake responsible for compliance with the
71 terms and conditions of the Existing Contract in connection with the Assigned Project Water.
72 3. Payment of Existing Operation and Maintenance Deficit.
73 a. Redding shall have paid in full to Reclamation any operation and
74 maintenance deficit that may be due to the United States as a result of the previous delivery of
75 the Assigned Project Water to Redding, prior to the effective date of this Agreement,pursuant to
76 the Existing Contract.
77 b. Reclamation acknowledges and agrees that, upon the satisfaction of
78 subdivision(a) above, no operation and maintenance deficit is owed by Redding to the United
79 States as a result of the delivery of the Project Water as of the effective date of this Agreement.
80 However, if.Reclamation determines there is any additional amount owed or at any time needs to
81 make an adjustment to its past water contractor accountings, resulting in an amount that is
82 outstanding or overpaid as a result of delivery of Project Water to Redding, including Charges,
83 such amount or adjustment shall be owed by Redding if outstanding, or credited or refunded to
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Contract No. 14-06-200-5272X-P
(Partial Assignment)
84 Redding if overpaid to Reclamation as a result of the delivery of Project Water to Redding, prior
85 to the effective date of this Agreement, pursuant to the Existing Contract.
86 4. Contractor Service Area and Points of Diversion. On or after the effective date of
87 this Agreement, the Assigned Project Water will be delivered to Shasta Lake's contract service
88 area as shown on Exhibit A attached to this Agreement. Shasta Lake will divert the Assigned
89 Project Water from existing point(s)of delivery located at the 16-inch water meter located at the
90 interconnection of the pumping plant discharge line at the water treatment facilities which are
91 located adjacent to the Shasta Dam visitor area, and/or other point(s) approved in writing by
92 Reclamation.
93 5. Reservation of Interest.
94 (a) Upon full execution of this Agreement, Shasta Lake shall be the
95 Contractor under the Existing Contract as to the Assigned Project Water, and Redding shall
96 continue to be the Contractor under the Existing Contract for all Project Water other than the
97 Assigned Project Water.
98 (b) Any breach or default by Shasta Lake of any obligation with respect to the
99 Assigned Project Water shall not affect the rights, duties, obligations, and interests of Redding ,
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100 with respect to the Existing Contract, and shall not constitute a breach or default of Redding with 'I
101 respect to the balance of Project Water under the Existing Contract.
102 (c) In the event of termination of this Agreement, Redding hereby retains a
103 right of reverter, as described in this subdivision, to all of Shasta Lake's rights and obligations
104 under the Existing Contract to the full contractual quantities set forth in Article 3 of the Existing
105 Contract. The Parties agree that in the event that this Agreement is terminated and provided that
106 any curable breaches of Shasta Lake, as determined by the Contracting Officer, existing at the
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Contract No. 14-06-200-5272X-P
(Partial Assignment)
107 time of termination of this Agreement are cured within a reasonable time by Redding,then
108 Redding's rights and obligations related to all contract quantities specified in Article 3 of the
109 Existing Contract shall fully revert to Redding. Shasta Lake's rights and obligations related to
110 the Assigned Project Water as established by this Agreement shall terminate, as of the date of
111 such reversion.
112 6. Water Rates and Charges. The Assigned Project Water shall be subject to the
113 applicable Rates and Charges as shown in Exhibit B attached to this Agreement, and crediting
114 determined annually in accordance with Federal law, associated regulations and the then-current
115 CVP ratesetting policies. To enable Reclamation to compute appropriate Rates and Charges,
116 Shasta Lake shall submit to Reclamation water delivery schedules as required by the Existing
117 Contract,as may be amended. Upon the effective date of this Agreement, all historic, present,
118 and future costs and credits accrued under the Existing Contract, as may be amended,
119 supplemented, or renewed that relates to the Assigned Project Water, will be recognized and
120 established under separate financial accountings for Shasta Lake.
121 7. Termination Clause. This Agreement shall become effective on the date
122 established in Article 12 and shall continue so long as Shasta Lake is making the payments
123 required and paying any other amounts owing under the Existing Contract, this Agreement and
124 applicable law, as they apply to the Assigned Project Water, unless it is terminated by the
125 Contracting Officer by reason of a material uncured breach by Shasta Lake; Provided, That the
126 Contracting Officer shall not seek to terminate this Agreement by reason of an asserted material
127 uncured breach by Shasta Lake unless it has first provided at least sixty (60) days written notice
128 of the asserted breach to Shasta Lake and Shasta Lake has failed to cure such breach within the
129 sixty (60) day notice period or to diligently commence curative actions satisfactory to the
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Contract No. 14-06-200-5272X-P
(Partial Assignment)
130 Contracting Officer for a breach that cannot be fully cured within sixty(60)days;Provided
131 further,That this Agreement may be terminated at any time by mutual consent of the Parties
132 hereto. If this Agreement is terminated pursuant to this Article 7,the provisions of subdivision
133 (c)of Article 5 shall apply.
134 8. United States Approval. The United States hereby approves this Agreement,
135 accepts the assignment contemplated hereby and accepts Shasta Lake as a Contractor,as that
136 term is used in the Existing Contract,and finds that no further action by the United States is
137 necessary to put this Agreement into effect.
138 9. Agreement Drafting Consideration. Articles 1 through 12 of this Agreement have
139 been drafted,negotiated,and reviewed by the Parties hereto,each of whom is sophisticated in the
140 matters to which this Agreement pertains,and no one Party shall be considered to have drafted
141 the stated Articles.
142
143 10. Assignment Limited—Successors and Assigns Obligated. The provisions of this
144 Agreement shall apply to and bind the successors and assigns of the Parties hereto,but no
145 assignment or transfer of this Agreement or any right or interest therein by either Party shall be
146 valid until approved in writing by the other Party.
147
148 11. Notices. Any notice,demand,or request authorized or required by this
149 Agreement shall be deemed to have been given,on behalf of Redding and/or Shasta Lake,when
150 mailed,postage prepaid,or delivered to the Area Manager,Bureau of Reclamation,Northern
151 California Area Office, 16349 Shasta Dam Boulevard, Shasta Lake,California 96019,and on
152 behalf of the United States,when mailed,postage prepaid,or delivered to the City Mayor,City
153 of Redding, 777 Cypress Avenue,Redding, California 96001,or the City of Shasta Lake,P.O.
154 Box 777, 1650 Stanton Drive, Shasta Lake,California 96019. The designation of the addressees
155 or the addresses may be changed by notice given in the same manner as provided in this Article
156 for other notices.
157
158 12. Effective Date. The effective date of this Agreement shall be ,2021,
159 Provided, That it is fully executed by all Parties.
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Contract No. 14-06-200-5272X-P
(Partial Assignment)
160 IN WITNESS.WHEREOF, the Parties have executed this Agreement as of the day and
161 year first above written.
162 CITY OF REDDING
163 By
164 Mayor
165 (Seal) By
166 City Clerk
167 CITY OF SHASTA LAKE
168 By
169 City Manager
170 (Seal) By
171 City Clerk
172 The foregoing Agreement for Partial Assignment of the Existing Contract and the terms
173 detailed above are hereby approved and accepted by the United States of America.
174 Dated: THE UNITED STATES OF AMERICA
175 By
176
177 'Regional Director
178 Interior Region 10: California-Great Basin
179 Bureau of Reclamation
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District Boundary City of Shasta Lake RECLAMATION
® Contractor's Service Area Uunaging Witei-in the West
Contract No. 14-06-200-5272X-P
Exhibit A
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Dare:1011412020 Miles
File Name:N:lDistrictslContractslshosta lakelshasta lake 20200228.mxd 0 1 2 A 602-202-126
District Form-M&I
Contract No. 14-06-200-5272X-P
Exhibit B
CITY OF SHASTA LAKE
2020 Rates and Charges
(Per Acre-Foot)
............. M&I Water
COST-OF-SERVICE(COS)RATES
!Capital Component $0.00
O&M_Component
g $6.12
Water Marketin
..........
.
Storage
Conveyance ( $0.00
Direct Pumping _ $1.24
;Deficit Cost Component
Interest Bearing 1 $34.79 1
TARRA_Compone_nt $0.00
OTAL COS RATE(Tier I Rate) $57.14
JIM&I FULL COST RATE Mom $57.14 omi
;TIERED PRICING COMPONENTS (In Addition to Total COS Rate Above)
M&I
Tier 2 Rate: >80%<-90%of Contract Total
j [M&I Full Cost Rate M&I COS Rate]/2
(Amount to be Added to Tier 1 Rate) $0.00
Tier 3 Rate: >90%of Contract Total
I
[M&I Full Cost Rate- M&1 COS Rate]
(Amount to be Added to Tier I Rate) �� �� $0.00
V1P.lu4F ell� ;lu�ii@IIl � ':kl° 4r .'
!CHARGES AND ASSESSMENTS(Payments in Addition to Rates) 3
P.L. 102-575 Surcharges(Restoration Fund Payments)������ �
[Section 3407(d)(2)(A)] _ _ _ $22.23 z
P.L. 106-377 Assessment(Trinity Public Utilities District)-
[Appendix
istrict)[Appendix B, Section 203] $0.12
,
EXPLANATORY NOTES
I The surcharges were determined pursuant to Title XXXIV of P.L. 102-575. Restoration Fund
surcharges under P.L. 102-575 are determined on a fiscal year basis(10/1-9/30).
The Trinity Public Utilities District Assessment is applicable to each acre-foot of water
delivered from 3/1 -2/28 and is adjusted annually.
Additional details of the rate components are available on the Internet at
www.usbr.gov/mn/cvpwaterrates/ratebooks.