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HomeMy WebLinkAboutReso 1952-1299REOLUTION NO. 1299 ,,',', !reSOLUTION tlO 0 -1299-. ,J,! 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 .'1 ,Yt '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 "I.'i.' I. ~ 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 , .'" '. 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_____ Ni\Y3 : COlJNCILiI.!\N Ilm1e___._~_~__ A135El',JT: COllNC ILMEN DcliolifL~__.__ _._~._ ~'Yr fJ.;....4L ()-r-:t '" e---rr-'--- '--;--0 :P-~r-'G"l~;' J.. I, -__ ..1_ L,J J- Vi. ~J__,,_,_ 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 ~ " , ,_ -> r .. .' ,,/ ._ , , , _r _ " . 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, .......... ~ 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 . " ~ " ._ " ~ 0- , , , _' _ .' . , or .r _ - ,-. . WHEREAS, the City is a public agency incorporated .~ .. - in and constituting a part, and hereinafter referred to as a "memberll, of the San Diego County Water Authority, a separate ..... .'"\ 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 ", 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, . ' whereupon the City of Chula Vista will cease to be a member thereof; and ~ERElS, Company is a public utility whose Sweetwater -l~ '} . \ ( 'i ','J .\ ,'I District includes the City of Chula Vista, the City of National . 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 . . 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 -~ 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 . , 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 ~- ~ "branch line"). Company shall be under no obligation or liability ~ ~^ -3- 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 -4- shall in no event be less than an amount equivalent to fifty percent (50%) of the aforementioned aggregate taxes. As soon as '^ 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 '.'r' 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 " 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 ^ 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. -5.. 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 ,.- '", 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 ^ 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 -6- 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, -7- this agreement may be terminated in accordance with the following provisions. (a) In the event that the City shall cease to be a ^ 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 ^ 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 ~ ^ of this agreement, or at least ninety (90) days prior to the ^ 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 -8- 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 , 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" ~ -, 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 -9.. 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. -10- 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 "-J Atts;!i:l ..' l ~// //;J ~~~~7~9f- SOIJJ'J:l~..~ 'Y""I',m1, ",Gi,l.T ,J;ON DISTHICT ~,--- )- /', // ] //"'- ".Y../ B i/;( '," /(ldfi Y i ,,/' {II' ,;// (3):';1\L) Att"~~L Secret8x'y / CALI HATi,R & 'l':CUQHONE CONP,.'\.NY "!11p-...-IA:d' t President F.. ~ ' bY... 1/lce / 11 .-__..5L{: ,'.~" i t//_l, ( r -i t c' r ~ ';-:"wW' S d lL " ,:,-.X:~/:;'j )",'l.-} Secretv,hr Lj' ... '" ( " c,' ^ I ) ,')W.l." J By "I 1 I, the undersigned, do hereby approve the form and legality of the foregoing agreement this ~ay of rJol3J?VA.ft,Y , ~ - - . ,. - .' .' - , . . .' , , 1952. ""af{~~~~a,vista. h j:! 'I il , >: , ' I'.; i !:l 1 r~ -12-