BERRENDA MESA WATER DISTRICT

 

                                                     GENERAL INFORMATION

 

I.          History - Major Events

a.         Formation

September 3, 1963 - District formed as a California Water District.

 

b.         First Bond Authorization

June 1966 - Landowners authorized the sale of $38,150,000 of bonds for the construction of water distribution facilities that included the Station A pumping plant and the Berrenda Mesa Canal.

 

c.         Water Supply Contract

March 1967 – A water supply contract was executed with Kern County Water Agency for 105,000 acre feet of annual water entitlements from the State Water Project.  This contract is through the year 2035.

 

d.         First Bond Sale and Initial Construction - Zone 1

June 1967 - District sold the first $7,990,000 in bonds to build the first phase distribution system into Zone 1.  The initial service area was about 30,000 acres.

 

e.         First Water Delivery

February 1968 - First deliveries of State Project water to Berrenda Mesa Water District.

 

f.          Flood Disaster

January 1969 - Extensive flood damage occurred to the distribution facilities, requiring $350,000 in short term financing for repairs.

 

g.         Pumping Ability Increases

1969 - District and State pumping facilities were enlarged at a cost of about $4,000,000.  A portion of the cost was financed with short term financing.

 

h.         Water Supply Contract Amended

1971 - The water supply contract with Kern County Water Agency was amended due to the purchase of additional water from Semitropic Water Storage District.  This increased the maximum annual entitlement to 155,100 acre feet.

 

i.          Zone 2 Distribution System

1975 - Second phase of the distribution system was constructed for the Zone 2 service area with financing from State loans in the amount of $1,600,000.  The service area of Zone 2 was about 1,400 acres, with provisions for expansion to about 4,500 acres.  The total District service area increased to about 33,000 acres, and an additional 4,000 acres was served by landowners' facilities by 1976.

 

j.          Bond Authorization Increased

June 1976 - The landowners authorized an additional $17,500,000 bond issue for an amended Plan of Works.  The District has in excess of $30 million of unused bond authorization.

 

k.         Land Transfers, Mendiburu-Getty Project

1976 - Lands in Zone 5 and Zone 4 were exchanged for lower elevation lands.  The construction of a third phase distribution system (Mendiburu-Getty Project) to serve about 4,300 acres from the California Aqueduct was completed.  The cost of the third phase was about $2,700,000.  The total District service area increased to about 38,000 acres by 1977.

 

l.          Drought

1977 - The worst drought of record caused the District to idle 10,000 acres of land in the service area.  The District purchased Metropolitan Water District exchange water and along with a reduced State Water Project allocation, had about a 60% supply for the year (87,800 acre feet).  The District obtained financial relief during the 1977 drought from a $1,000,000 US Bureau of Reclamation loan; $1,567,000 Economic Development Administration loan; and $3,000,000 warrant sale.

 

m.        Zone 2 Final Phase Construction, System Purchase

1979 -The District purchased landowner constructed systems and constructed the final phase of the Zone 2 distribution system.  The cost of this expansion was about $3,600,000, bringing the total service area up to about 49,000 acres.  The balance of undeveloped lands in the District is about 6,000 acres.

 

n.         1983 Capacity Improvements

1983 - The District constructed improvements to the distribution system and canal to permit more flexibility in peak irrigation deliveries.  Improvements included a new pumping plant and pipeline system from the State’s Coastal Stub; raising of canal lining between Checks 5 and 6; and extension of the tie line pipeline and a connection to the Mendiburu-Getty system.  Total cost of improvements was about $4,150,000, including engineering, legal, and bond services.

 

o.         Major Delinquencies

The District began experiencing major delinquencies in water payments by landowners in December, 1984.  By 1994 about 14,000 acres of land in the service area were delinquent in payment of District water charges including about 12,000 acres actually deeded to the District for non-redemption.  Most delinquencies occurred on lands planted to cotton and other annual crops, although about 2,500 acres of permanent crops were also abandoned.

 

p.         1991 Water Emergency<

In 1991 the District received no water from its normal SWP contract supply.  Over $9 million in additional costs were incurred in the purchase of emergency supplies to serve permanent crops in the District.

 

May 1997 - Sale of Permanent Water Entitlement from delinquent lands.  Following twelve years of attempting to market a portion of the District’s SWP contract Water, a sale to Mojave Water Agency of 25,000 a.f. for $25 million was completed.  In 1999 another sale was completed to Alameda County – Zone 7 on 7,000 acre-feet for $7 million.  These two sales represented sales off of delinquent lands.  The on going water costs associated with these delinquencies were being paid for by the District landowners making it virtually uneconomic to farm in Berrenda Mesa because of high water costs.

 

Additional sales of permanent water entitlement have occurred resulting from a downturn in commodity pricing.  A sale to the Kern County Water Agency was completed in 2001 for 8,000 acre-feet for $8 million.  Additional sales were completed disposed of another 22,500 a.f. leaving a balance of 92,600 a.f. of SWP contractual right to water beginning in 2010.  Because of sale limitations in Monterey Amendment to the State Water Project Contract, it is unlikely that additional transfers will be made to entities outside of Kern County.

 

 

II.         LAND INFORMATION

 

a.         Area - 55,000 acres of which 49,000 acres are presently in the service area, although not all farmed.  About 6,000 acres has no water distribution system available.

 

b.         Topography - gently sloping plain, ranging in elevation from about 480 feet to 1,000 feet above sea level.

 

c.         Groundwater in the area is high in total dissolved solids (TDS > 1,500).

 

d.         Good, deep soils with no foreseeable drainage problem.

 

e.         District policy is to detach or exempt from water cost, non-farmable lands due to rocks and other physical features.

 

III.       WATER COSTS TO FARMERS

 

a.         Standby Charge

A standby charge per acre is levied to all lands in the service area.  Current (2011) charge is about $19.44 per acre.  Standby charges pay the debt service associated with the construction groundwater banking projects (i.e. Pioneer Project and the Berrenda Mesa Project) and the expansion of the Cross Valley Canal. 

 

b.         Water Tolls

1.         Base Water Toll - A base water toll rate is established for each acre foot of water under landowner contract or reserved for lands not under contract, regardless of location in the District.  Base water toll revenue pays for all District fixed costs other than power, and State water fixed costs.  The 2011 base water toll rate is $83.08 per acre foot.

 

2.         Incremental Water Tolls - An incremental water toll is charged for each acre foot of water ordered each year and includes District power costs for pumping and State water variable costs.  These costs vary depending on the pumping plants serving an area, and the turnout location from State facilities.  District power costs range from $25 per acre foot up to $35 per acre foot.  State water variable costs in 2011 are about $20 per acre foot at the California Aqueduct turnout and about $35 per acre foot at the Coastal Aqueduct turnouts. 

 

 

3.         Water Cost Summary - Water costs to farmers in 2011, including all increments            of cost, ranges from about $150 per acre foot to $190 per acre foot.  This cost

            includes water tolls.

 

 

 

VI.       WATER USE

 

a.         Water use has ranged from a low of about 52,094 acre feet in 1969 to a high of 139,640 acre feet in 1981.  Average per acre water use is about 3.5 acre feet per acre.  2008 water use was about 86,000 acre-feet.  Unused project water is usually put into groundwater storage or transferred to other water districts.

 

V.        CROP DATA

 

a.         The cropping pattern in the District has changed from row crops in 1968 to one of principally permanent crops at present.  High water costs have been one of the factors contributing to the present cropping pattern.

 

Listed below are the District crops grown in 2008:

 

            Almonds                                                8,585 acres

            Pistachios                                             13,446 acres

            Fallow                                                  15,177 acres

            Pomegranates                                        1,626 acres

            Misc Hay and Grains                              1,957 acres

            Grapes                                                  1,416 acres

            Carrots                                                   3,198 acres

            Pasture                                                   8,010 acres

            Citrus                                                          41 acres

            Melons                                                      243 acres

            Tomatoes                                                  146 acres

            Lettuce                                                      162 acres

            Total                                                    54,007 acres

 

 

 

VI.       IRRIGATION SYSTEM TYPES

 

a.         Drip Fan Jet Irrigation - 25,000 acres

b.         Sprinkler - 4,000 acres

 

VII.      DISTRICT ORGANIZATION

a.         Board of Directors (5)

            Joseph MacIlvaine, President - Paramount

            Leon Elwell, Vice President - Blackwell

            Larry Ritchie - Sandridge Partners

            Alan Scroggs – A&P Growers

            Rick Cole - Paramount

 

b.         Staff

            Chris Hickernell, Operations and Maintenance Superintendent

            Staff of 12 full time employees, 1 part-time employee, and 1 shared employee

            provide 24 hour per day service to District landowners.

 

c.         Consultants

            General Counsel - George Logan

            Engineers – Provost and Prichard and Meyers Civil Engineering

            Bond Counsel - Fritz Stradling

 

d.         Major Landowners

                        Paramount Farming Company

                        Blackwell Land Company

                        A&P Growers

                        Sunshine Agriculture

            Sandridge Farms