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HomeMy WebLinkAboutContracts & Agreements_87-2023AMENDMENT TO SAN BERNARDINO BASIN GROUNDWATER COUNCIL FRAMEWORK AGREEMENT This AMENDMENT TO SAN BERNARDINO BASIN GROUNDWATER COUNCIL FRAMEWORK AGREEMENT ("Amendment") is entered into and effective this day of , 2023 by and among the City of Colton ("Colton"), the City of Redlands ("Redlands"), the City of Rialto ("Rialto"), the City of San Bernardino Municipal Water Department ("SBMWD"), City of Loma Linda ("Loma Linda"), East Valley Water District ("East Valley"), San Bernardino Valley Municipal Water District ("Valley District"), San Bernardino Valley Water Conservation District ("Conservation District"), Fontana Water Company ("FWC"), West Valley Water District ("WVWD"), Yucaipa Valley Water District ("Yucaipa"), Bear Valley Mutual Water Company ("BVMWC"), and Loma" Linda University ("LLU") each of which is referred to as a "Party," for the purpose of extending the original San Bernardino Basin Groundwater Council Framework Agreement until June 30, 2024, while participants continue their analysis and deliberations regarding its potential longer term renewal. This Amendment is entered into in consideration of all of the following: RECITALS WHEREAS, on or about February 27, 2018, the Parties to this Amendment entered into that certain "San Bernardino Basin Groundwater Council Framework Agreement" ("Original Agreement") for the purpose of coordinating basin management and cooperatively funding basin maintenance and groundwater recharge activities within the San Bernardino Basin Area; and WHEREAS, the Original Agreement had a term of five (5) years; and WHEREAS, the Groundwater Council formed under the Original Agreement has been functioning successfully since then, allowing a forum for cooperative management and input of basin maintenance, operation, and recharge activity, including cooperative funding for imported or other supplemental water supplies when available for replenishing local groundwater supplies; and WHEREAS, in light of the coming expiration of the five-year term of the Original Agreement, the Parties have undertaken deliberation and debate on modifications that might be made to the Groundwater Council's structure and procedures, including refinements to its Equitable Allocation Model; and WHEREAS, the Parties have reached agreement on modifications to the Equitable Allocation Model, but have not finalized consensus on other contemplated changes to the Groundwater Council processes, structures, and procedures; and WHEREAS, the Parties wish to implement the Equitable Allocation Model revisions on which they have reached agreement, but continue the Original Agreement in all other respects as originally adopted to allow for further investigations and potential improvements to the original Groundwater Council, its purposes, processes, and procedures. 159/015042-0001 10094328.32 a05/15/23 -1- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE NOW THEREFORE, in consideration of the matters recited and the mutual promises, covenants, and conditions set forth in this Agreement, the Parties hereby agree as follows: 1. EQUITABLE ALLOCATION MODEL The Equitable Allocation Model, attached to the Original Agreement as Exhibit B, is hereby replaced, and superseded in its entirety by the Equitable Allocation Model attached to this Amendment as Amended Exhibit B. 2. TERM Paragraph 2.2 of the Original Agreement is hereby amended to read as follows: This Agreement shall remain in effect until June 30, 2024, unless earlier terminated by the unanimous written consent of all then -active Parties, provided, however, that this Agreement shall remain in effect during the term of any contractual obligation or indebtedness of the GC that was previously approved by the GC. 3. REMAINDER OF ORIGINAL AGREEMENT UNAFFECTED. Except as specifically amended herein, the remainder of the Original Agreement is and shall be unaffected by this Amendment, with the intent that only the Term and the Equitable Allocation Model shall vary from the Original Agreement, and except as specifically so amended, the Original Agreement in all of its particulars shall remain in full force and effect throughout the extended term. 4. COUNTERPARTS. This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -2- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE DATED: , 2023 CITY OF COLTON, a California general law city and municipal corporation By: William R. Smith, City Manager 159/015042-0001 10094328.32 a05/15/23 -3- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE DATED: June 12, 2023 CITY OF REDLANDS, a California general law city and municipal corporation By: C.'1..t'z,i Charles M. Duggan, Jr., CityManager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -4- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE CITY OF RIALTO a California general law city and municipal corporation DATED: , 2023 By: Arron Brown, Acting City Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -5- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE DATED: , 2023 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT By: Miguel Guerrero, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -6- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE CITY OF LOMA LINDA a California charter city and municipal corporation ATED: , 2023 By: T. Jarb Thaipejr, City Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -7- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE EAST VALLEY WATER DISTRICT DATED: , 2023 By: Michael Moore, General Manager/CEO [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -8- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE DATED: , 2023 SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT By: Heather Dyer, CEO/General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -9- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE DATED: , 2023 SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT By: Betsy Miller, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -10- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE FONTANA WATER COMPANY DATED: , 2023 By: Josh Swift, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -11- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE WEST VALLEY WATER DISTRICT DATED: , 2023 By: Van Jew Acting General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -12- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE YUCAIPA VALLEY WATER DISTRICT DATED: , 2023 By: Joseph Zoba, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -13- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE DATED: , 2023 BEAR VALLEY MUTUAL WATER COMPANY, a California mutual water company By: George Hanson, General Manager [Signatures continued on next page] 159/015042-0001 10094328.32 a05/15/23 -14- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE LOMA LINDA UNIVERSITY DATED: , 2023 By: Richard H. Hart, MD, DrPH, President [End of Signatures Pages] 159/015042-0001 10094328.32 a05/15/23 -15- I:\cmo\Agreements\GC_First Amendment FY22-0168.docx - AE Exhibit B EQUITABLE ALLOCATION METHOD The Parties to this agreement are currently sharing costs and establishing the voting weight for each Party using the following method, which is performed annually after the annual submittal of the Western -San Bernardino Watermaster Report to the Court. The details for this method are included in a Microsoft Excel Spreadsheet titled REVISED_EAM_Budget_FY23- 24 V3.xlsx, as amended by the GC from time to time, which is incorporated here by reference. Copies of that file have been made available to all parties. I. Calculation of the Equitable Operations and Maintenance (O&M) Cost. The equitable distribution of the O&M Costs amongst the Parties shall be calculated from the approved budget, as follows: Equitable O&M Cost Plaintiffs = 0.2795 x O&M Costs Equitable O&M Cost Non Plaintiffs = Proportion of Total Pumping x 0.7205 x O&M Costs where, O&M Costs = annual budgeted or actual costs to operate and maintain the facilities needed to recharge supplemental water into the SBBA that have been reviewed and approved by the Council Proportion of Total Pumping (%) = Party's total SBBA pumping where, Non -Plaintiff Total SBBA Pumping Party's total SBBA pumping (acre-feet) = the Party's total amount pumped from the SBBA for the previous complete calendar year, as published by the Western -San Bernardino Watermaster, and adjusted for any water pumped by one Party and received by another Party, to coordinate with non-parties still paying the groundwater charge, Parties may be requested to report production to the SBVWCD, as needed. Non -Plaintiff Total SBBA Pumping (acre-feet) = total Non -Plaintiff pumping of the parties for the previous complete calendar year, as recorded by the Western -San Bernardino Watermaster. II. Calculation of the Equitable Supplemental Water Cost. The equitable distribution of the supplemental water cost will only be paid by the Non -Plaintiff parties and shall be calculated, as follows: Equitable Water Cost = Party Gap + Sustainability 159/015042-0001 10094328.32 a05/15/23 where, Party Gap ($) = GapLast 5 Years * Supplemental Water Cost where, GapLast 5 Years < 0, else Party Gap ($) = $0 Gap Last 5 Years (acre-feet) = Safe Yield Last 5 Years - Demand Previous Year + Net New Recycled Previous Year where, Demand Previous Year = total water demand calculated for the Party for the previous year using published data, as approved by the Council. The safe yield of the last 5 years for the SBBA will be proportioned amongst the Parties as described below. where, Net New Recycled Previous Year = The amount of recycled water from the previous year minus Recycled 1959-63 where Recycledi959-63 is the amount of recycled water used in the base period 50% Local SW Recharged = 50% of the 5-year average local surface water available to an agency that is controlled by that agency and intentionally delivered for groundwater recharge into the Basin Sustainability ($) = Water Use x (Total Equitable Water Cost — Total Gap ($)) where, Sustainability Water Use (%) — Party Water Use (acre—feet)-50% Local SW Recharged Total Water Use (acre—feet)-50% Total Local SW Recharged where, Party Water Use (acre-feet) = the Party's total average water use over the past, complete, 5 year period (surface water, groundwater, recycled water, imported water, 50% Local SW Recharged, etc.) Total Water Use (acre-feet) = Summation of each individual Party Water Use 50% Total Local SW Recharged = 50% of the sum of all Local SW Recharged Total Equitable Water Cost = Sustainable Amount x Supplemental Water Cost where, 159/015042-0001 10094328.32 a05/15/23 Sustainable Amount (acre-feet) = The amount of supplemental water, in acre-feet, needed to achieve long-term sustainability which shall be determined by the GC Supplemental Water cost ($/acre-foot) = The cost for recharged Supplemental Water. The cost for SWP water will be as published in the San Bernardino Valley Municipal Water District Resolution 888, as amended Total Gap ($) = Summation of each individual Party Gap ($) for all Parties Proportioning Safe Yield. The Western -San Bernardino Judgment does not apportion the safe yield by water agency. The Parties agree that, for purposes of this agreement, the Safe Yield will be apportioned, as follows: Safe Yield Last 5 Years_ The safe yield for the previous 5, complete, calendar years shall be proportioned based upon the total water use for each Party, as follows: Safe Yield Last 5 Years = Party Water Use x Safe Yield Non Plaintiffs Where, Water Use is a percentage (%) and is defined above Safe Yield Non Plaintiffs = defined by the Western -San Bernardino Watermaster from time to time, currently 172,745 acre-feet Credit for Water. A party can provide Net New Recycled Previous Year and 50% Local SW Recharged and receive monetary credit towards their Equitable water cost. Credit for Water ($) = (Net New Recycled Previous Year + 50% Local SW Recharged) x Supplemental Cost where. Net New Recycled Previous Year = defined above 50% Local SW Recharged = defined above Supplemental Water Cost = defined above III. Formula for Voting Weight. The voting weight for each Party will be calculated, as follows: Voting Weight = Total Party Cost Total Costs Where, Total Party Cost = Equitable O&M Cost Non Plaintiffs + Equitable Water Cost Total Costs = 0.7205 x O&M Costs + Total Sustainable Water Cost The total sum of all of the individual Voting Weight values shall be equal to 1.0. 159/015042-0001 10094328.32 a05/15/23