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HomeMy WebLinkAboutAgenda Statement 1982/01/26 Item 7COUNCIL AGENDA STATEMENT Item 7 Meeting Date 1-26-82 I EM TITLE: Resolution ~O ~.f~~Approving agreement to sell Metro capacity //rights to Spring Valley Sanitation District , S MITTED BY: City Engineer (4/5ths Vote: Yes No x ) The City Council in August 1981 authorized sale of up to 4 million gallons per day (mgd) of Metropolitan Sewerage System capacity rights held by the City. The Spring Valley Sanitation Di trict subsequently submitted a written request to purchase 1.7 mgd of that available capacity. An agreement formalizing that of er to purchase has been prepared through joint action of City an County staff personnel. RECOMMENDATION: That Council approve the agreement and authorize th Mayor to execute in behalf of the City. /COMMISSION RECOMMENDATION: Not applicable. DII.SCUSSION: In January 1979, Council considered an Engineering Department report on "Projected Capacity Needs on Metropolitan Sewerage System" which recommended sale of 5 mgd from the City's total capacity reservation of 22.1 mgd. A survey disclosed that se eral agencies were interested in purchase of such capacity ri hts. In August 1981, the City Engineer reaffirmed the practicality of selling up to 5 mgd. He also recommended that Council authorize the sale of capacity rights to interested ag ncies on the basis of the minimum alternative prices detailed in his report and further that Council reiterate its intent to sell up to an additional 4 mgd in capacity rights (one mgd having be n sold previously). Council accepted the report and the staff recommendation. Th San Diego County Department of Public Works acting in behalf of the Spring Valley Sanitation District in September 1981 su mitted a written request to purchase 1.7 mgd. Consequently, a formal agreement was drafted and is now submitted for Council aA royal. r Page 2, Item ~ Meeting Date 1--25-82 Tel 1.1 2.1 3.1 4.1 5.1 rms of the agreement are summarized as follows: The sale is conditioned upon annexation of an area known as Rancho San Diego to the District. Until the annexation is completed to reserve the capacity, the District will pay for an option to purchase in the amount of 1-1/4~ per month on the total cash amount due. The option payments will be made quarterly commencing upon approval of the agreement by both the City and the District. Interest payments will cease upon transfer of the total cash payment or upon completion or denial of the Rancho San Diego annexation to the District. The unit price is $363,472.00 per mgd which is the stipulated minimum cash price per the August 1981 report by the City Engineer. Total sale price for 1.7 mgd is therefore $617,902.40. The sale is further dependent upon approval of the transfer by the City of San Diego. We expect no problems in obtaining their approval. Payment of the total cash amount ($617,902.40) is to be made within 30 days after the Rancho San Diego annexation to the District is approved by the District Board. WE~I:fpw ~~ l~ _ w 4 ~. , THE CITY OF SAN DI AGO M. 5.401 CITY OPERATIONS BUILDING 1222 1st AVENUE. SAN DIEGO, CALF. 92101 WATER U~ILITIES er 24, 1982 R J. Massman, Director D partment of Public Works C unty of San Diego B ilding 2 5 55 Overland Drive S n Diego, CA 92123 Mr. Massman: Agreement to Purchase 1.7 Million Gallons per Day of Metropolitan Sewerage System Capacity from the City of Chula Vista by the Spring Valley Sanitation District. E closed are two copies of the fully executed subject agreement. e San Diego City Council had consented to this transfer of c pacity contingent on the approval of the Cities of Lemon Grove a d La Mesa. The City Councils of these Cities have taken the r quested action and copies of their approvals are also enclosed. e City of San Diego is currently in tl-~e process of preparing a endments to the Sewage Disposal Agreements of 1960. These w 11 be submitted to the County and the City of Chula Vista i the near future. S~.ncerely, W 11 Snif n W ter Utilities D puty Director W :CY:gp c John Lippitt City of Chula Vista E closures -/D~~ y ,' ~ ~y~ "~ t tJ MEL, ~~I • O ~ bQ I'~ . '~~~ n nt °`~` September 17, 1982 . Charles W. Yackly ministrative Analyst .. e City of San Diego ty Operations Building 22 1st Avenue a Diego, CA 92101 Transfer of San Diego Metropolitan Sewerage System Capacity Rights from the City of Chula Vista to the Spring Valley Sanitation District. ar Mr. Yackly: . The City Council at its regular meeting held September 14, 1982 proved the transfer of capacity rights as outlined above. I am enclosing r your information a certified copy of that Minute Action. Very truly yours, diu~-~ ~, /iJlc~s Marie G. Mangan, City C rk r1: yc closure City Engineer -/D737 ADMINISTRATION BUILDING, 8130 ALLISON AVENUE, LA MESA, CALIFORNIA 92041 / p14) 463-6611 ` ~f ~ a CERTIFICATE OF CITY CLERK I, MARIE G. MANGAN, City Clerk of the City of La Mesa, rnia, do hereby certify that the following is a true and exact t from the Minutes of a regular meeting of the La Mesa City 1 held September 14, 1982. ' •G~uC/ MARIE G. MANGAN, City C rk ~`,MESE f~lib os I 9 ,' r ~ ~~ ®~ 1~.~ ~~~~ CONSENT ITEMS ................................ . ................................. i) Approval of transfer of 1.7 million gallons of capacity rights _ __ -_in the Metropolitan Sewerage System from.the City of Chula Vista to the Spring Valley Sanitation District ................................................................... ~TION: It was moved by Councilman Hill that Council approve Consent Items 6(a) through 6(k). The motion was seconded by Councilman Lopez and adopted, all present voting aye." -/d 7.57 ADMINISTRATION BUILDING, 8130 ALLISON AVENUE, LA MESA, CALIFORNIA 92041 / (714) 463-6611 ~~ ~.~ t ~ . r~ .` RESOLUTION NO . SCR ~~ } ,~ ,~ '.1982 .. •_t u;: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LEMON GROVE CONCURRING IN ~ U S2f1~;91 TRANSFER OF SAN DIEGO METROPOLITAN SEWERAGE SYSTEM CAPACITY RIGHTS WHEREAS ,• the Spring Valley Sanitation District has entered an agreement with the City of Chula Vista for the purchase and transfer of the rights to 1.7 million gallons per day of metropolitan sewer system capacity; and WHEREAS, San Diego City Council Policy 400-8 establishes procedures for the transfer of capacity rights among member agencies of the San Diego Metropolitan Sewerage System provided that the expansion of a Sanitation District receives the concurrence of the city or pities within whose sphere of influence the District lies; and WHEREAS, the City of Lemon Grove has reviewed the proposed transfer and sale of capacity rights from the City of Chula Vista to the Spring Valley Sanitation District and finds that such transfer will not adversely affect the City of Lemon Grove. NOW, THEREFORE, BE IT FcESOLVED,~that the City Council of the City of Lemon Grove approves the sale and transfer of --Metropolitan Sewerage System capacity rights from the City of Chula Vista to the Spring Valley Sanitat~.on District as set forth in the agreement dated April 27th, 1982 and identified as document no. RR-256921 by the office of the City Clerk of the City of San Diego. ~-io ~~ J '~~ ~4~, ~ r I'~ M , ` Passed and adopted by the California on City Council of the City of Lemon Grove, . sPn Eamhiar n ~gR~ by the following vote: Councilmembers Ayes Noes Abstain Absent James V. Dorman - I~1 ~ L J ('- j- ~ Robert F. Burns ~ ~f -___ _ ~ ~ .~-.~ Willis J. Bowersox ~~ !~ ~ I I Lois Heiserman ~ (~ (--j _ (~ _ Dell Lake r ~ . ~ j j~------- ~~ ,• j L__J f I ~ I /s f Jamea V. Dorman Mayor of the City of Lemon Grove ATTEST: ~s~ Karen Thonaon City Clerk of the City of Lemon Grove CERTIFICATION OF CITY CLERK I, Karen Thomson, City Clerk of the City of Lemon Grove, California do hereby certify the foregoing to be a true and exact copy of Resolution No. 578 duly passed and adopted by the City Council of said City On September 20, 1982 Q1/`L~Z v---~ d~~,~ City Clerk ~~`~ 7~ 7 %~ INTERIM AGREEMENT FOR PAYMENT TO THE SPRING VALLEY SANITATION DISTRICT BY RANCHO DIEGO DEVELOPENT COMPANY FOR CAPACITY PURCHASE AND SERVICES RENDERED. Th~s agreement is hereby dated and effective this 20th day of April 1982, and is by and between the Spring Valley Sanitation District (h reinafter referred to as SVSD) and the Rancho San Diego Development Company, a C lifornia partnership, (hereinafter referred to as RSD). RECITALS A. RSD has requested annexation to the SVSD for the purpose of obtaining sanitary sewerage disposal through SVSD and the Metropolitan Sewage System (Metro). B A condition of annexation requires that Metro capacity be obtained by the SVSD to serve future RSD Development. C The Board of Directors of the SVSD directed staff to negotiate with the City of Chula Vista to purchase 1.7 million gallons per day (MGD) of capacity in Metro for use by RSD D. RSD. has agreed to pay the District the negotiated cash price of the 1.7 MGD when the annexation is approved. E. The District has negotiated an Option to Purchase Agreement with the City of Chula Vista for a cash price of $617,902.40 for 1.7 MGD of Metro capacity. F. The terms of the Option to Purchase Agreement includes the payment to the City of Chula Vista of interest on the cash price until the annexation is either approved or disapproved or abandonment by RSD. the interest rate is 1-1/4 percent per month. Interest will be paid quarterly by SVSD to the City of Chula Vista. County Contract Noa 18469-R ~~ ~J -z- G.I H.I I. J.I KJ L1 RSD has agreed to pay the SVSD, quarterly payments equal to the interest due the city of Chula Vista. Terms contained in the Option to Purchase Agreement includes the assumption by SVSD of the annual capacity payment ($20,533.00 per year for 1.7 MGD) to Metro now being paid by Chula Vista. SVSD will assume the payment concurrent with the change of capacity ownership. RSD has agreed to pay to the SVSD the annual capacity payment for the 1.7 MGD until RSD obtains wastewater discharge permits and pays annual sewer service fees sufficient to pay the annual capacity fee and actual operation and maintenance cost for the proposed annexation. Actual operation and maintenance costs includes, but not limited to, pumping cost, line maintenance and stoppage cleaning. It is agreed that SWSD staff effort is required to support the RSD annexation project and is to be funded by RSD. It is agreed by both parties that upon successful completion of the annexa- tion, this Interim Agreement will be modified to include terms and conditions pertinent to the specific RSD Project, including, but not limited to, payment of fees, schedule of the project and construction of the offsite facilities. In the event the proposed annexation is disapproved or abandoned by RSD, this agreement will become null, void and of no effect. N~w, therefore, incorporating the recitals of facts set forth above, and in consideration of mutual covenants contained herein, it-is agreed by and between the parties as follows: tion 1. The above recitals are all true and correct. is ~.~~ action 2. Purpose The purpose of this Agreement is to specify monies due SVSD from RSD and the schedule of payment to purchase on RSD behalf, 1.7 MGD of Metro capacity from the City of Chula Vista. action 3. Method of Payment All cash payments defined in this Agreement will be made payable to the SVSD and delivered to: James E. Frandsen, Deputy Director, Department of Public Works, 5555 Overland Avenue, San Diego CA 92123. action 4. Cash Payment A cash payment of $617,902.40 for the purchase 1.7 MGD of Metro capacity is due Chula Vista within 30 days after the proposed RSD annexation is approved by the SVSD Board of Directors. RSD will deliver to the SVSD the total amount ($617,902.40) two weeks prior to SVSD Board of Directors hearing date for final approval. In the event the annexation is disapproved, the deposit of $617,902.40 will be returned to RSD. action 5. Interest Payment SVSD agrees to pay interest payments to Chula Vista 15 days after the end of each quarter at a rate of 1-1/4 percent per month. Interest charges begin on the day the Board of Directors, SVSO executes Agreement entitled; "Agreement to purchase 1.7 million gallons per day of Metropolitan Sewer System (Metro) Capacity from the City of Chula Vista by the Spring Valley Sanitation Dis- trict." RSD will deliver to SVSD quarterly interest payments of $23,171.34 within 5 days after the close of each quarter as follows: ~'-ic~~~ -4- Prior to April 5, 1982; July 5, 1982; October 5, 1982; January 5, 1983. (Partial quarters will be prorated.) If required, the same schedule will be followed for 1983. Se~tion 6. Annual Capacity Payment Annual capacity payments are due the City of San Diego on or before February 1, of each year, payment in advance for capacity. These costs are normally paid using annual Sewer Service Charges (SSC) collected by the District. Since RSD will not be paying SSC until wastewater discharge permits are is- sued, RSD will be responsible to reimburse SVSD the annual capacity costs. When SSC are paid by the RSD properties, the annual capacity payment will be reduced by the amount of SSC paid annually to the SVSD, less any actual opera- tion and maintenance costs used to support RSD properties. Adjustments will be made annually on December 1. Therefore, prior to December 1 of each year, beginning in December 1982, RSD will deliver to the SVSD annual capacity payments of $20,433.00 or as adjus- ted as defined above. Payments will be made annually until RSD annual SSC payments equal the annual capacity charge. Partial yearly payments will be prorated to the nearest month based on capacity ownership. SVSD'S ownership will occur concurrently with the payment of the cash payment to the City of Chula Vista (Section 4) at which time capacity payments to the City of San Diego by SVSD will begin. Chula Vista has made payment in advance for February 1, 1982. If capacity ownership changes prior to February 1, 1983, RSD will be required to pay to SVSD a prorated share of February 1982 payment based on the nearest month of SVSD ownership. ~~-~a~s~ tion 7. SVSD Staff Services From time to time RSD will deposit in advance, sufficient monies in SVSD trust account Number URR122 to fund staff time required to support the proposed RSD Annexation Project. RSD will be invoiced giving actual usage of trust fund rnonies by the SVSU. ~Sf action 8. RSD Obligation ` Failure of RSO to meet the terms of Sections 4,5 and 7 will result in dissap- proval of the annexation. Failure to meet the terms of Section 6 may result in denial of future connection commitments. action 9. Mutual Cooperation RSD and SVSD mutually agree to cooperate and assist in obtaining any and all approvals, or other documents which may be necessary to accomplish the above transfer of funds and services. action 10. Time of the Essence Both parties understand that time is of the essence in the completion of all matters contemplated by this Agreement. Both parties agree to use all due diligence to complete all phases of the work contemplated by this Agreement at the earliest possible and convenient time. ion 11. Modification The Agreement may not be altered in whole or in part except by modification in writing, executed by both parties to this Agreement. ~tion 12. Partial Invalidity If any term, covenant, condition or provision of this Agreement is held by a court of competant jurisdiction or by an arbitration proceeding as provided herein to be invalid, void or unenforceable, the remainder of the provisions -%01~~ -6- Sed Se+ hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. tion 13. Successors in Interest Unless otherwise provided in this Agreement, the terms, covenants and conditions contained herein shall apply to the benefit of, and bind the heirs, successors, executors, administrators and assigns of the parties hereto. Any assignment entered into by RSD shall be submitted to the Director of Public Works for approval. Upon such approval the rights and obligations of the parties shall be transferred from RSD to the assignee as provided in the instrument of assignment. Approval of the Director of Public Works shall not be unreasonably witheld. ;t ion 14. Arbitration of Disputes Any controversy or claim between the parties of this Agreement, including, but not limited to, any claims, disputes, demands, differences, controversies, or misunderstandings arising-under, out of, or in relation to this Agreement, shall be submitted to and determined by arbitration in accordance with the California Arbitration provisions contained in Code of Civil Procedure Section 1280, et. seq., as amended from time to time. The arbitrator or arbitrators shall determine the rights of the parties in accordance with the law and the award shall be subject to review as to the arbitrator application of the law by any court having jurisdiction of the matter whether or not any mistake of the law shall appear on the face of the award. As to all questions, however, the determi~lation of the arbitrator or arbitrators shall be binding upon all parties and shall be deemed final and conclusive. Each party shall be entitled to written findings of fact and //fn /D ~~7 -7- conclusions of law as to all issues determined by the award. Subject to the above limitations, the award granted by the arbitrator shall be binding upon all parties to the arbitration and judgement upon the award rendered by the arbitrator or arbitrators may be entered in any court having jurisdiction over the matter. ction 15. Term of Agreement This agreement shall expire: Se 1. When replaced or cancelled by mutual agreement of both parties. 2. Abandonment or denial of the Annexation. Ir~ WITNESS WHEREOF, the undersigned have executed this agreement as of the day and ar first above written: gppROVED BY 7HE p15tRlCT iOARD Qf D112KTORS A~'R 2 E 1982 ~ ~ v ~E~( Cf THE DISTRICT BOARD GF DIRf c, i, "' i~ ~~~~ Spring Valley Sanitation District Asst. Clerk of :f:c Qourd of Ciractors By ho/9an Dfie . Sharpe i General Manager Development Co. (~~.i~~ilt' v..,.,..~ [~.i ~1~ ~~~~ ~~ The Cat of C~uia Vista Engineering Departr~nt 575-5021 January 28, 1982 File No: KY 073 CERTIFIED N0. 369664 C unty Department of Public Works B ilding 2 5 55 Overland Avenue S n Diego, CA 92123 A~tention: James Frandsen, Deputy Director REEMENT FOR SALE OF METRO CAPACITY 0 January 26, 1982, the Chula Vista City Council approved the sale of 1.7 fiGD of Chula Vista's Metro System capacity rights to the Spring Valley S natation District. Three signed copies of the necessary agreement a e enclosed. I is our understanding that following action by the Spring Valley Sani- t tion District's Board of Directors, your organization will forward the e ecuted copies to the City of San Diego for their execution. Ifs you have any questions, I can be reached at 575-5119. .~I ~~-,~ W LL AM E. HARSHMAN S NIOR CIVIL ENGINEER W9H:av ~-~ ~ E closures (3) ~ ~"~' ~' h CJ' ~.~- . ~~7 ~ V ~~ , : y~~nqgr /y~ Y" T~..~ ~ n. ~f±~ V ~~ ~ y:-~uew~ ).f~ I~1 _~U~S 276 Fourth Avenue Chula Vista , Cafiforma 92010