07-10-2015 BPU RPT 13 - Laserfiche WebLink

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sY A I R E N E R L Y I I F F T 69k PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES Board Memorandum DATE: July 10, 2015 ITEM NO: 13 File ID — 15 -2161 — D SUBJECT: PROPOSED WATER PRODUCTION, CONVEYANCE AND RECIPROCAL SALES AGREEMENT WITH THE REGENTS OF THE UNIVERSITY OF CALIFORNIA (UC RIVERSIDE) ISSUES: The issue for Board of Public Utilities consideration is approval of the 2015 Water Production, Conveyance and Reciprocal Sales Agreement between the City of Riverside and the Regents of the University of California for water service at the UC Riverside campus. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the 10 -year Water Production, Conveyance and Reciprocal Sales Agreement between the City of Riverside and the Regents of the University of California for water service at the UC Riverside campus; 2. Authorize the City Manager or his designee to execute the Agreement; 3. Authorize the City Manager or his designee to execute any documents necessary to administer the Agreement; and 4. Authorize the City Manager or his designee to terminate the Agreement for circumstances provided in the Agreement. BACKGROUND: For the past 18 months, staff has been negotiating a successor agreement to the 1993 Water Sales Agreement between the City of Riverside (City) and the Regents of the University of California (Regents) for water service at the UC Riverside campus. The proposed 2015 Water Production, Conveyance and Reciprocal Sales Agreement between the City of Riverside and the Regents of the University of California (Agreement) recognizes the Regents' unique position as: 1) a co- plaintiff to the 1969 Western Judgment which adjudicated the water rights in the Bunker Hill, Rialto - Colton and Riverside Groundwater Basins; 2) a shareholder in the former East Riverside Water Company, including perpetual rights to use certain City owned water facilities; and 3) a current shareholder in the Gage Canal Company. Regents Water Rights Under the terms of the judgment in Western Municipal Water District v. East San Bernardino County Water District (Riverside County Superior Court No. 78426) (the "1969 Judgment "), the Regents hold