Assignment and transfer of the 1963 State Water Supply Contract between DWR and District, as amended, from District to Central Coast Water Authority (CCWA)

In 1963, the Santa Barbara County Flood Control and Water Conservation District (District) entered into the State Water Supply Contract (SWP Contract) with State of California's Department of Water Resources (DWR) for the delivery of SWP water to the County. In exchange for such service, the District agreed to repay all associated SWP capital and operating costs. Between 1985 and 1988, the District entered into 19 separate agreements (Water Supply Retention Agreements or WSRAs) with local contractors wherein the District assigned its retained rights under the SWP Contract to the local contractors. In return, each local contractor agreed to pay the District for the local contractor's pro rata share of all costs and expenses associated with delivery of portion of the supply made available by the SWP Contract. The purpose of the WSRAs was to shift responsibility for payment under the SWP Contract from the County taxpayers to the individual local contractors and their customers-the ratepayers. On August 31, 1991, CCWA's Members entered into the Joint Exercise of Powers Agreement, creating CCWA. Thereafter, CCWA entered into a Water Supply Agreement (WSA) with each Member and other retail agencies and end users (each a Participant) providing for CCWA's delivery of SWP water to each Participant in return for each Participant's payment of its pro rata share of all DWR and CCWA costs. On November 12, 1991, the District and CCWA entered into a Transfer of Financial Responsibility Agreement (TFRA) under which the District assigned its financial obligations under the SWP Contract to CCWA, but the District remained the contracting party with DWR to the SWP Contract. For the past 34 years, CCWA has assumed full responsibility for the SWP Contract, including but not limited to the administration, implementation, and performance of the SWP Contract. CCWA and the District now wish to effectuate a full, final, and complete assignment and transfer of the District's rights, interests, and obligations under the SWP Contract to CCWA. The proposed assignment requires the approval of DWR. In order to accomplish this, by approving the proposed "Agreement Regarding Assignment, Assumption, and Release of the State Water Supply Contract for Santa Barbara County" the District will agree to assign and transfer all of its rights, interests, and obligations under the SWP Contract, CCWA will agree to assume all such rights, interests, and obligations, and DWR will release the District from its obligations and approve the assignment.