HomeMy WebLinkAboutReso 1952-1299REOLUTION NO. 1299
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!reSOLUTION tlO 0 -1299-.
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H,S~30LTjTI(,_)l'T CiF' TEt~ CITY c(}UrrCIL ()F' THE CI'1IY
OF CHULI'~ VI,SrI'/\. APPF{OVIl\fG AGR-~~El'<.:TENT \,'JITI-I THE
CAtIF\J !~I,~,'IA :.';,_ArrER {>. rrL'~tEPHONE CCiI'\'TFl\.NY
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'1'1-18 (;1TY COIJl\)CIL ()'~i-' Tl-ITI'; CITY OF CEUtA VI~;T/\, iJOri~S ET~~(;~2Y
R~SOLVE AS FOLLO~JS:
to'
That cert:~~in agreement, C"l co_py of v,rhich is attached here-
to and by this referenqe incorporatpd herein, between the CITY
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OF' CHt'IJi\ VI,(jTA and th(~ CITt OF' l'.J/~'CIC
C T T'/', the (:,~OTJ T1-1 IJt~ Y
I?RIGATIr1N DI3rrHICT J and the Cj\LIFU8}JI.i~' T'~R &: TELEPHONE
COM'~NY, is hereby anproved, and the Mayor of the City of
Chula.. Vista is }h:'('eby aU.thorized Cl_n_d directed to execute the
same for a nd on behalf of the City of Chula Vista upon said
agreements having boerl approved by tIle City of NationaJ_ City
and tho 'south Bay Irrigcl tion Distri ct, pr ovided thil t if the
CITY OF NATIOT.1j\L CITY fails to join in said agreement the CITY
51" CHULA VI,STA i-J.p~:H'oved an agreement on the same terms betv,reen
the CITY OF CHUUl VI.:~TA, the 5\1UTE BAY IIJFIGA'l'L;I) TJISl'flIOT, and
the CALIFO :~(j\rlii" .,I'~ Ti~H t:: TEI.EPl-IOl-JE C()l"I_?AN Y if to such agrc:cnl8nt
there is added a clause to the effect that the Ci~y of Chula
Vista will be Gr.~nted the option to enter into an agreement on
the Seune terms as lTlay be contained in any such Cl E;re ern ent betv,,reen
,
the CITY OF I\IA'_CIOhUd_J CITY and the CI~LIl'i_'l-?l'. TA I//AT'~H &: TELEPI-ION'E
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COIV)PANY as may be hereafter entered into between them, such
t~rms to aoply to the City of Chula Vista as of the date the
same ~pplies as to the City of National City.
ADOP'fED i~NO APPROVi~l) by tIle City Council of tlle City of
.
Chula Vista, California this 20.thuay of F(,,)ru~ry, 1952, by the
followin;~. vote, to-wit:
J.YE,S:
COUNCUI,;r;;IJ 11ill!2l<;ljLd.,~n... Hobel_____
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COlJNCILiI.!\N Ilm1e___._~_~__
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COllNC ILMEN DcliolifL~__.__ _._~._
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Vista
THIS AGREEMENT, made and entered into this '-.0 r:!i day
of r.:fi1JRr.lAIt y , 1952, by and between the City of Chula
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Vista, a municipal corporation organized and existing under and
by virtue of the laws of the State of California, hereinafter
referred to as the '~Cityll, the South Bay Irrigation District,
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an irrigation district organized and existing under and by virtue
of the laws of the State of California, hereinafter referred to
as "South Bayll, and California Water & Telephone Company, a
corporation o~ganized and eXisting under the laws of the state
of California, hereinafter referred to as IICompanyll,
,
WIT N E S SET H: That
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WHEREAS, the City is a public agency incorporated
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in and constituting a part, and hereinafter referred to as a
"memberll, of the San Diego County Water Authority, a separate
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and independent political corporate entity organized and acting
i by virtue of an act of the legislature of the State of California,
known as the County Water Authority Act; and
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WHEREAS, by reaSon thereof, said City is entitled to
receive Colorado River water from the said Water Authority for
use within said City; and
~EREAS, South Bay Irrigation District is a public
agency comprising the City of Chula Vista and certain unin-
corporated area outside of said City, which said South Bay
intends to become a member of the San Diego County Water Authority,
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whereupon the City of Chula Vista will cease to be a member
thereof; and
~ERElS, Company is a public utility whose Sweetwater
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District includes the City of Chula Vista, the City of National
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City and certain contiguous unincorporated territory, in Which
Sweetwater District the Company serves water for domestic,
muniCipal and other beneficial uses; and
~EAS, the parties hereto believe that it is in the
public interest that, during the term of this agreement, all
colorado River water to which the City becomes entitled should
be made available for distribution to users and consumers in
said City by the Company, as agent for the City, and that all
Colorado River water to which South Bay will become entitled
when and if it becomes a member of said San Diego County Water
Authority should likewise be made available for distribution
to users and consumers within South Bay, and have entered into
this agreement for the purpose of fully and definitely expressing
the agreement existing between them;
NOW, THEREFORE, the parties hereto do each mutually,
in consideration of the promises and agreements of the others
herein contained, promise and agree as follows:
1. The City does hereby empower COmpany, during the
life of this agreement, to distribute through the facilities of
Company as they now or may hereafter exist, for domestic,
municipal and other beneficial uses within said City, all such
water as sa~d c~ty shall become entitled to purchase from said
Water Authority, either through entitlement or otherwise, and
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to the extent that company shall require the same for the
purposes aforesaid. It is understood that such distribution
of said water shall be made by the Company solely as agent for
said City, and that the Company does not by this contract acquire
any right to said water other than the right to receive and
distribute said water, during the life of this agreement, solely
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as such agent, or any right to receive such water, or any part
thereof, in any capacity whatsoever after the termination of
this agreement.
2. The City promises and agrees that, so long as its
corporate area remains a part of said Water Authority, it
will protect its rights in and to all such water as is or may
become physically available to it as a member of said Water
Authority, and that it will make such requests, enter into such
agreements, and do any and all things and meet any and all re-
quirements that may be reasonably necessary to protect and maintain
its full rights in and to all such water, to the end that such
water shall be available for delivery as and when provided for
herein; provided, however, that the obligations expressed in the
foregoing portion of this section 2 shall not include the
obligation to pay the charges of said Water Authority for water
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so delivered, which obligation is assumed by the Company as
hereinafter more particularly provided. It is mutually under.
stood and agreed that nothing herein contained is intended or
to be construed to obligate the City to remain a member of said
Vater Authority, and that said City shall be free at any time
to withdraw from said Water Authority and cease to be a member
thereof.
3. The City promises and agrees to cooperate with the
Company to the full extent of its rights as a member of said
Water Authority and its obligations hereunder to the end that
this agreement be fully carried out.
~. The City agrees that the water to be distributed
by Company pursuant to this agreement shall be made available
to Company through that certain pipe line commonly known as the
"La Mesa :Sweetwater Extension" (hereinafter referred to as the
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"branch line"). Company shall be under no obligation or liability
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for maintaining the branch line or the keeping of it in good
condition or repair. It is recognized by the parties that the
obligation to maintain the branch line and keep it in good condition
and repair rests upon the said Water Authority. The City promises
and agrees to use its best efforts to see that said obligation of
said Water Authority is faithfully kept and performed.
5. Subject to the conditions hereinafter set forth,
Company agrees to pay to or for the account of the City, as compensa-
tion for the right to receive and distribute such water, and to
collect charges therefor from its users and consumers thereof,
aggregate charges consisting of two components, at times and upon
conditions as follows, to-wit:
Component A: A charge equal in amount to the charge
made by said San Diego County Water Authority at its established
rates for members, for all water delivered to the Company by said
Water Authority for the account of the City, which charge shall be
billed by said Water Authority direct to the Company and paid by
the Company to said Water Authority for the account of the City,
such payments to be made at such times as shall be in accordance
with the rules and regulations of said Water Authority.
Component B: A standby charge for each fiscal year
during the term or extended term of this contract in a sum
equivalent to sixty .percent (60%) of the aggregate of any
Metropolitan Water District and San Diego County Water Authority
taxes for such fiscal year applicable to property situated in
said City, less a sum equivalent to one percent (1%) or a
fractional percent of said taxes for each one thousand (1,000)
acre feet or fractional part thereof of water delivered to
Company by said Water Authority during such fiscal year, provided,
however, that the standby charge payable in any such fiscal year
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shall in no event be less than an amount equivalent to fifty
percent (50%) of the aforementioned aggregate taxes. As soon as
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the amounts of said taxes are finally fixed and determined by
the respective taxing authorities, the city shall promptly notify
the Company as to the said amount and the Company agrees to pay
to the City an amount equivalent to thirty percent (30%) of said
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taxes on or before December 1st of said fiscal year and twenty
percent (20%) on or before April 1st of said fiscal year, and the
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remainder, if any, of the standby charge payable for such fiscal
year on or before July 31st of the next succeeding fiscal yearo
For the period from February 24, 1952 to and including June 30,
1952, the Company agrees to pay to the City as standby charge
for said period an amount equivalent to one~third (1/3) of what
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the standby charge would have been for the full fiscal year from
July 1, 1951 to June 30, 1952 had this contract been in force and
effect during said full fiscal year, which said sum shall be
payable on or before July 31, 1952.
It is mutually intended by the parties hereto that the
City and/or South Bay, as the case may be, during the term of this
agreement or any extension thereof, will utilize the standby
payments received from the Company for the purpose of paying not
less than fifty percent (50%) of the aggregate of said Metropolitan
and Water Authority taxes applicable to property situated within
said'City 8.nd/or South Bay.
6. The water to be delivered to Company fcrdistribution
pursuant to this contract shall be measured by standard Venturi
type meter or meters at the point known as Lakeside Control Station.
The City promises and undertakes that said meter or meters will be
maintained either by the City or said Water Authority.
In the event of the failure of said meter or meters to
register, the amount of water delivered shall be determined on the
basis of past deliveries, with due regard to seasonal variations
and other pertinent facts.
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The City agrees that said meters shall be tested at
intervals of not less than one year upon request by the Company
and at no expense to the Company. Company may have the said
meters tested at more frequent intervals at its own expense,
prOVided, however, that if any such test discloses an error
exceeding two percent (2%), then the expense of such test shall
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be borne by the City or said Water Authority. Such tests shall
be made by said Water Authority, prOVided, however, that both the
City and Company shall'have the right to be represented by
observers respectively selected by them at and during any such
tests. In the event that any such tests Shall disclose an error
exceeding two percent (2%), an adjustment shall be made in charges
against the Company covering the known or estimated period of
duration of such error, but in no event exceeding six (6) months.
The City guarantees that its proportionate part of the
quantity of water measured by said meter or meters actually
will be delivered at the end of said branch line into Sweetwater
Lake, and in the event that it is shown by flow-tests conducted
either by Company or said Water Authority that there is a
deficiency exceeding two percent" (2%) in the water so delivered
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int~ Sweetwater Lake, then an adjustment shall be made in the
charges made against Company covering the known or estimated
period of duration of such defiCiency, but in no event exceeding
six (6) months.
7. SUbject to the terms and conditions herein expressly
provided, Company, in pursuance of its obligations as a public
utility, agrees to distribute such water in said City, as such
agent, in connection with its own supplies, with due regard to
the protection of its consumers and so as to prudently determine
its needs and to exercise its judgment in order to protect its
supply and so as to protect its consumers from interruption or
diminution of service below their reasonable needs by reason
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of lack of water; and to this end Company will, so far as in
its judgment is practicable and advisable in view of current
conditions, reserve the water in the wells of the Sweetwater
Valley below the Sweetwater Dam as a tertiary supply.
8. It is understood that there will be an unavoidable
commingling of water owned by the Company, and the water owned
and delivered to it, as agent, by the City, and, therefore,
it is hereby expressly agreed that the amount of water to be
delive~ed to Company from the said Water Authority sources for
the account of the City shall never exceed the amount of water
distributed by the Compamy within the City, with due allowance
for evaporation, transmission and other unavoidable losses,
between the aforesaid point of metering and the points of
metering of deliveries of water to users and consumers in the
said Water Authority District.
9. It is understood that in any rate, condemnation, or
other proceedings, no value shall be attributed to this contract,
provided, however, that nothing herein contained shall be construed
as in any manner limiting the Company from receiving full credit
in any such proceeding for any capital investment and/or expendi-
ture made to fulfill the terms of this contract or otherwise.
10. This agreement shall continue in effect for a period
commencing on February 24, 1952 and terminating on June 30, 1962,
but such term shall be extended and said agreement shall continue
in effect for successive two-year periods thereafter unless
terminated as provided in Section 11 hereunder. The term "fiscal
year" as used hereinafter shall mean the period from and including
July 1st to and including the succeeding June 30th.
11. Anything herein to the contrary notwithstanding,
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this agreement may be terminated in accordance with the
following provisions.
(a) In the event that the City shall cease to be a
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member of said Water Authority, then upon that event this
agreement shall 'terminate ipso facto as to the City;
(b) The City by notice in writing given to the Company
at least ninety (90) days prior to the expiration of the term
of this agreement, ~r at least ninety (90) days prior to the
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expiration of any two..year extended term thereof, may terminate
this agreement as of the expiration of said term or extended term;
(c) The Company by notice in writing given to the City
at least ninety (90) days prior to the expiration of the term
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of this agreement, or at least ninety (90) days prior to the
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expiration of any two.year extended term thereof, may terminate
this agreement as of the expiration of said term or extended
term.
Neither the expiration, nor the termination for any
cause, of this agreement shall relieve the Company of the
obligation to pay all charges which, under the terms hereof,
may have accrued to the date of such expiration or termination,
whether such charges are based on water delivered to that date,
or as provided in paragraph 5 hereof, even though by the terms
of this agreement payment of such charges may not be due until
a date after such termination; provided, however, that except
in the event of termination of this contract as to the City
in the event and upon the conditions referred to in division
12 hereunder, should this contract be terminated for any cause
at any time other than the date of expiration of a fiscal
year, the standby charge payable by the Company for the
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fiscal year in which such termination occurs shall be that
proportion of the aggregate standby charge for the entire fiscal
year which the period from the preceding July 1st to the date of
termination bears to the entire fiscal year, and concurrently with
such termination said standby charge shall be adjusted between
the then contracting parties by payment or refund, as the case
may be.
12. It is contemplated that at sometime in the near
future South Bay Irrigation District will become a member of
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said fSan Diego County Water Authority, and that concurrently
therewith the City of Chula Vista will cease to be a member of
said Water Authority. It is mutually agreed that in such event
this contract shall terminate as to said City in accordance with
the provisions of Subdivision (a) of Section 11 hereof, and that
concurrently therewith South Bay shall become the "member"
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contracting party to this agreement in the place and stead of
said City, having all the rights and being SUbject to and
undertaking to perform all of the obligations of said City
hereunder, to all intents and purposes as if in the preceding
divisions of this agreement the name of South Bay were substituted
for the name of the City of Chula Vista wherever the latter occurs,
provided, however, that nothing herein contained shall be
understood or construed to obligate Company at any time to serve
water in any portion of the area embraced by South Bay in which
Company would not otherwise be obligated to render service,
prOVided, however, the Company agrees that if water service is
at any time applied for on any premises in South Bay which are
outside the Company's established service area, the Company will
make available to such premises the amount of water that said
premises are entitled to by reason of being within the corporate
area of South Bay. Such water shall be made available at the
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Company's main closest to the premises but all costs of connec-
ting to the Company's main and of transporting the water therefrom
to the said premises, including the cost of labor, pipe or
other materials or facilities incident thereto, shall be borne
entirely either by the owner or occupant of said premises or by
South Bay and the Company shall be under no obligation therefor.
It is further mutually agreed that in such event,. during the
balance of the fiscal year in which such event occurs, all further
standby charges, if any, payable by the. Company pursuant to the
provisions of this agreement shall be paid to an escrow holder
to be jointly designated in writing by the City and South Bay,
to the joint account of the City and South Bay, and that the
ultimate disposition or pro-ration, if any, thereof shall be
determined exclusively by and between the City and South Bay,
and that such payment of standby charge by Company in the
manner aforesaid shall fully discharge Company from any further
liability or obligation therefor. It is the general purpose
and intent of the City and South Bay that in the event of the
substitution of the latter for the former as the "member"
contracting party to this agreement, the standby charges payable
by the Company under the terms of this agreement for the fiscal
year in which such event occurs shall be adjusted between them
toward the end that the same shall be received by the City
and/or South Bay as they are equitably entitled.
13. This agreement shall bind and inure to the
benefit of the parties hereto and their respective successors
and assigns.
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14. In the event thc.t the, Comp2.ny at ",.ny time hereafter
enters into an agreement either voluntarily or under compulsion
of any final order of the Public Utilities Commiseion in case
No. 5356 ',ii th the City of Natione,l City 9roviding for the di8-
tribution by the COJ~any, as the agent of seid City of National
City, of said latter city's entitlement of Colorado River water,
then the City of Chula Vista or South Bay, as the case may be,
shall have and hereby is granted the option to terminate this
agreement am1 c'ilter into 2. nm,! c(srAsment '",i th the Company ef-
fective as of the effective d2te of such contract with the
City of Netional City and for the remaining term of cfiid con-
tract upon the same terms and conditions contained in said
agreement with the City of NatiOnal City, accommodated, however,
to provlde for the ui8tributi~n by the Comp8.ny of the enti.tle-
rnent to Color8do River water of the City of Chule. Vista or
South Bay, as the case may be.
IN \HT!Ie;SS ':lHER:DF, on the day ",nd year firf't herein-
above ~ritten, the Company and South Bay have ca~sed these
oreeents to be executed by their respective officers thereunto
duly authorized, and their corporate seals to be hereunto affixed;
and the City has caused these presents to be executed by its
Hayor and attested by its City Clerk pursuant to a resolution
legally and duly adopted by the Council of said City.
CITY OF CRULl'. VISTA
By ~ ,,-./-MJ--
7 Mayor
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Atts;!i:l ..' l ~// //;J
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SOIJJ'J:l~..~ 'Y""I',m1, ",Gi,l.T ,J;ON DISTHICT
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Att"~~L
Secret8x'y /
CALI
HATi,R & 'l':CUQHONE CONP,.'\.NY
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President F..
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Secretv,hr
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By
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I, the undersigned, do hereby approve the form and
legality of the foregoing agreement this ~ay of rJol3J?VA.ft,Y
,
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1952.
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