Resolution No. 2013-052RESOLUTION NO. 2013-52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE ISSUANCE OF A NOTICE
INVITING SEALED, COMPETITIVE BIDS FOR THE LEASE OF
450 ACRE FEET OF THE CITY OF VERNON'S ALLOWED
PUMPING ALLOCATION FOR THE 2012-2013 FISCAL YEAR
WHEREAS, the City of Vernon is interested in obtaining bids
for the lease of 450 acre feet of the City of Vernon's allowed pumping
allocation for the 2012-2013 fiscal year; and
WHEREAS, by Memorandum dated May 21, 2013, the Director of
Community Services & Water has requested that the City Council of the
City of Vernon approve the issuance of a notice inviting sealed,
competitive bids for the lease of 450 acre feet of the City of
Vernon's allowed pumping allocation for the 2012-2013 fiscal year; and
WHEREAS, the City Council of the City of Vernon has
determined that it is in the best interest of the City of Vernon that
such notice be issued in the form approved by this Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council finds that the notice of
inviting sealed bids for the lease of 450 acre feet of the City of
Vernon's allowed pumping allocation for the 2012-2013 fiscal year, is
exempt under the California Environmental Quality Act (CEQA) in
accordance with Title 14, Chapter 3, Class 1, Section 15061(b)(3),the
general rule that CEQA only applies to projects that may have an effect
on the environment.
051513230
SECTION 3: The City Council of the City of Vernon hereby
directs the City Administrator, or his designee, to issue a written
notice inviting sealed, competitive bids, the specifications, form of
contract and all additional certifications and assurances for the lease
of 450 acre feet of the City of Vernon's allowed pumping allocation for
the 2012-2013 fiscal year, in essentially the form attached hereto.
SECTION 4: The City Council of the City of Vernon hereby
directs City staff to comply with all applicable law in the
solicitation, receipt, opening, and rejection of bids.
SECTION 5: The Interim City Clerk, or Deputy City Clerk, of
the City of Vernon shall certify to the passage, approval and adoption
of this resolution, and the Interim City Clerk, or Deputy City Clerk,
of the City of Vernon shall cause this resolution and the Interim City
Clerk's, or Deputy City Clerk's, certification to be entered in the
File of Resolutions of the Council of this City.
APPROVED AND ADOPTED this 21't day of May, 2013.
Title: Mayor / Mayor Pro-Tem
0
VV Dana Reed
Interim City Clerk y
APPROVED AS TO FORM:
rl�rh1
George Rodriguez, City Attorney
- 2 051513230
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
I Dana Reed
ss
, Interim City Clerk / Deputy City C1e�f
the City of Vernon, do hereby certify that the foregoing Resolution,
being Resolution No. 2013-52, was duly passed, approved and adopted by
the City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, May 21, 2013, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of May, 2013, at Vernon, California.
A
(SEAL)
Interim City Clerk / Peput-1 r't
3 - 051513230
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: May 22, 2013
TO: S. Kevin Wilson, Director of Community Services & Water
FROM: Deborah Juarez, Records Management Assistant !�
RE: Resolution No. 2013-52 — A Resolution of the City Council of the City of Vernon
Authorizing the Issuance of a Notice Inviting Sealed, Competitive Bids for the Lease of 450
Acre Feet of the City of Vernon's Allowed Pumping Allocation for the 2012-2013 Fiscal
Year
Transmitted herewith is a copy of Resolution No. 2013-52 referenced above, which was approved by City
Council on May 21, 2013.
Thank you.
Attachment
c: Scott Rigg
Resolution No. 2013-52
RECEIVE®
MAY 15 Z013
CITY CLERK'S OFFICE
STAFF REPORT
REDEIIfED
MAY 15 2013
CITY ADMlluleTi;.,T,,,.
DEPARTMENT OF COMMUNITY SERVICES & WATER
DATE: May 21, 2013
TO: Honorable Mayor and City Council V
FROM: Samuel Kevin Wilson, Director of Community Services and Water
RE: Approval to issue Notice Inviting Sealed Bids for the Lease of 450 Acre Feet
of the City of Vernon's Allowed Pumping Allocation for the 2012-2013 Fiscal
Year
Recommendation
It is recommended that the City Council:
1. Find the proposed Notice of Sealed Bids for the Lease of 450 Acre Feet of the City of Vemon's
Allowed Pumping Allocation (APA), with flex, for the 2012-2013 Fiscal Year is exempt under the
California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an effect on the environment; and
2. Approve the Notice of Sealed Bids for the Lease of 450 Acre Feet of the City of Vernon's APA, with
flex, for the 2012-2013 Fiscal Year. The proposed lease will be for a period of one-year and be effective
July 1, 2013 through June 30, 2014.
Backeround
The Department of Community Services and Water (Department) performed an operational
analysis to determine its water resource strategy for fiscal year 2012-2013. The City of Vernon (City)
currently has an annual APA of 7,539 acre-feet of water from groundwater aquifers in the Central Water
Basin., In addition, the City has a contract with the Central Basin Municipal Water District (CBMWD) to
purchase surface water in order to augment the City's water demand requirements. It is estimated that the
City will use approximately 8,121 acre-feet of water for 2012-2013 fiscal year. Of this, approximately
7,200 acre-feet will be extracted utilizing the above -mentioned APA. The remaining 921 acre-feet will be
purchased from the CBMWD. Furthermore, there has been a continued reduction in water sales over the
last five years due to conservation measures enacted by the City in 2009, and a slow economic growth in
the City. The City has seen an approximate 23-percent reduction in water use over a four year period.
Moreover, with continued low water demand requirements the City has been hard-pressed to
pump its APA of 7,539 acre -feet -year. As a result, the City may lose 450 acre-feet of carryover water if
the water is not leased. California Water Law provisions do allow water purveyors to carryover 20
percent of their APA. However, the City's water account is full with fiscal year 2011-2012 carryover
water occupying the entire account. The Department can off -set a portion of the lost water costs by
COMMUNITY SERVICES & WATER DEPARTMENT
OFFICE MEMORANDUM
TO: Mark Whitworth, City Administrator
FROM: Samuel Kevin Wilson, Director of Community Services and Water 04
Kl/
DATE: May 15, 2013
SUBJECT: Approval to issue Notice Inviting Sealed Bids for the Lease of 450 Acre Feet of
the City of Vernon's Allowed Pumping Allocation for the 2012-2013 Fiscal Year
The Department of Community Services and Water (Department) performed an operational analysis to
determine its water resource strategy for fiscal year 2012-2013. The City of Vernon (City) currently has an
annual APA of 7,539 acre-feet of water from groundwater aquifers in the Central Water Basin. In addition, the
City has a contract with the Central Basin Municipal Water District (CBMWD) to purchase surface water in
order to augment the City's water demand requirements. It is estimated that the City will use approximately
8,121 acre-feet of water for 2012-2013 fiscal year. Of this, approximately 7,200 acre-feet will be extracted
utilizing the above -mentioned APA. The remaining 921 acre-feet will be purchased from the CBMWD.
Furthermore, there has been a continued reduction in water sales over the last five years due to conservation
measures enacted by the City in 2009, and a slow economic growth in the City. The City has seen an
approximate 23-percent reduction in water use over a four year period.
Moreover, with continued low water demand requirements the City has been hard-pressed to pump its
APA of 7,539 acre -feet -year. As a result, the City may lose 450 acre-feet of carryover water if the water is not
leased. California Water Law provisions do allow water purveyors to carryover 20 percent of their APA.
However, the City's water account is full with fiscal year 2011-2012 carryover water occupying the entire
account. The Department can off -set a portion of the lost water costs by leasing the unused APA to an agency
that needs the water to augment their water demand requirements. A market analysis found that available water
is currently being leased at approximately $140/acre-foot.
A Staff Report is herein attached recommending the City Council authorized the Department of
Community Services and Water to issue Notice's Inviting Sealed Bids for the Lease of 450 Acre Feet of the
City of Vernon's Allowed Pumping Allocation for the 2012-2013 Fiscal Year at the May 21, 2013 meeting.
Thank you.
SKW/sr
Enclosures
FAS=\S Wy DawmemAr.awr.e.-2012.20 iMy AMJnigemor lie We Rom 2012-2013. o
Notice Inviting Sealed Bids For The
Lease of 450 Acre Feet of Allowed Pumping
Allocation In The Central Water Basin For
The 2012-2013 Fiscal Year
Bid submittal Information
Place: Community Services and Water Department
4305 Santa Fe Avenue
Vernon, CA 90058
Deadline: 2:00 pm
Date: Tuesday, June 4, 2013
City of Vernon
Community Services Department
4305 Santa Fe Ave. Vernon CA 90058
Phone: (323) 583-8811
May 2013
Notice Inviting Sealed Bids for the
Lease of 450 Acre Feet of Allowed Pumping Allocation in the Central Water Basin, with flex, for
the 2012 - 2013 Fiscal Year
The City of Vernon (City) has an Allowed Pumping Allocation of 7,539 acre feet per year. For Fiscal
Year 2012-2013, it is anticipated that 450 acre feet of the Allowed Pumping Allocation will be available
for lease, with flex. The City of Vernon is offering 450 acre feet of its Allowed Pumping Allocation, with
flex, for Fiscal Year 2012-2013.
Bids will be accepted for increments of 100 acre feet up to 450 acre feet. The City of Vernon reserves the
right to refuse any or all bids. The City of Vernon reserves the option to award the lease to one or more
water agencies. Please include a complete copy of the attached form in your bid.
BID FOR THE CITY OF VERNON ALLOWED PUMPING ALLOCATION IN THE
CENTRAL WATER BASIN
NAME OF PURVEYOR/WATER AGENCY:
REQUESTED QUANTITY OF ALLOWED PUMPING ALLOCATION
IN ACRE FEET:
BID PRICE (PER ACRE-FOOT):
TOTAL BID FOR ACRE FEET:
APPLICANT NAME:
ADDRESS:
CONTACT NUMBER:
EMAIL ADDRESS:
DATE:
SIGNED BY:
City or Water Agency Authorized Representative
COMMUNITY SERVICES & WATER DEPARTMENT
Samuel Kevin Wilson, Director of Community Services & Water
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811 Fax (323)826-1435
May 15, 2013
To All Interested Parties:
Subject: Notice Inviting Sealed Bids for the Lease of 450 Acre Feet of Allowed Pumping
Allocation in the Central Water Basin for the 2012-2013 Fiscal Year
The City of Vernon (City) is requesting bids to lease, with flex, 450 acre-feet of the City's Allowed
Pumping Allocation.
For questions regarding the this bid, please contact Scott B. Rigg, Public Works and Water
Superintendent, by phone at (323) 583-8811, or by email at siieg(a),ci.vernon.ca.us.
In order for your bid to be considered, submit three (3) copies of the bid in a sealed envelope marked
"Water Lease of 450 Acre Feet of Allowed Pumping Allocation for 2012-2013 Fiscal Year."
Department of Community Services and Water
Attention: Samuel Kevin Wilson, P.E.
Director of Community Services and Water
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
SUBMISSION DEADLINE: June 4, 2013, at 2:00 p.m. All bids for consideration must be in
possession of the City by the submission deadline. Postmark date from the U.S. Postal Service, or faxed
copies, will not be considered. The bid shall be signed by a duly authorized official of the City or Water
Agency. The City reserves the right to reject any and all proposals submitted and no representation is
hereby made that any contract will be awarded pursuant to this RFP.
SKW/sr
Sincerely,
Samuel Kevin Wilson, P.E.
Director of Community Services and Water
E)Cchtsively Industriaf
WATER RIGHTS LICENSE AND AGREEMENT
For valuable consideration, the City of Vernon ("Licensor") hereby grants to
("Licensee") a license to extract L__) acre-
feet of Licensor's Allowed Pumping Allocation allocated to Licensor (or its predecessors in
interest) under and pursuant to Judgment dated October 11, 1965, and entered in Los Angeles
County Superior Court Case No. 786656 entitled "Central and West Basin Water Replenishment
District v. Charles E. Adams, et al." during the period commencing July 1, 2012 and continuing
to and including June 30, 2013.
Said License is granted subject to the following conditions:
1. Licensee shall exercise said right and extract the same on behalf of Licensor
during the period above specified and put the same to beneficial use and Licensee shall not by
the exercise hereunder of said right acquire any right to extract water independent of the rights of
Licensor.
2. Licensee shall pay assessments levied on the pumping of said ground waters by
the Water Replenishment District of Southern California.
3. Licensee shall notify the Water Replenishment District of Southern California and
the Watermaster that said pumping was done pursuant to this license and provide the
Watermaster with a copy of this document.
4. Licensee shall note, in any recording of water production for the period of this
agreement, that said pumping was done pursuant to this license.
5. Licensee's Allowed Pumping Allocation shall be increased by the amount hereby
leased when computing carryover or allowable over extraction as provided by Part III, Subpart A
and B in said Judgment.
Licensor warrants that it has ( ) acre-feet of Allowed
Pumping Allocation and that it has not pumped and will not pump or permit or license any other
person to pump any part of said acre-feet during the period
of July 1, 2012 through June 30, 2013.
Dated: June , 2013
CITY OF VERNON
"Licensor"
By
Its
ATTEST:
Dana Reed, Interim City Clerk
"Licensee"
Its
APPROVED AS TO FORM:
William F. Kruse, Esq.
Lagerlof, Senecal, Gosney, and Kruse, LLP,
Special Counsel to the City of Vernon