Resolution No. 4778
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RESOLUTION NO. 4778
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION OF AN "IN-
LIEU" REPLENISHMENT AGREEMENT AMONG THE CITY
OF VERNON, CENTRAL AND WEST BASIN WATER RE-
PLENISHMENT DISTRICT AND CENTRAL BASIN
MUNICIPAL WATER DISTRICT
7 WHEREAS, Central Basin Municipal Water District is a
8 member agency of the Metropolitan Water District; and
9 WHEREAS, the Central and West Basin Water Replenishment
10 District was formed to carry out replenishment functions; and
11 WHEREAS, the City of Vernon purchases water from the
12 Central Basin Municipal Water District; and
13 WHEREAS, the Metropolitan Water District has adopted
14 a program whereby "water producers" of member agencies may
15 purchase water on a restricted basis during specific months at
16 an "in lieu" replenishment rate and the Director of Water
17 and Power has recommended that the City Council approve said
18 agreement.
19 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
20 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of the City of Vernon
22 hereby finds and determines that the recitals contained herein-
23 above are true and correct.
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SECTION 2: That the City Council of the City of Vernon
hereby approves the execution of the In-Lieu Replenishment
Agreement attached hereto as Exhibit "An and incorporated herein
as though fully set forth at length and authorizes the Mayor to
execute said Agreement for and on behalf of the City Council of
1 the City of Vernon.
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SECTION 3: That the City Clerk of the City of Vernon
3 shall certify to the passage of this Resolution and thereupon
4 and thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this l7thday of 'March
, 1981.
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- LEONIS C.
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ATTEST:
Lt~~~
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
) SSe
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vern~n, do hereby certify that the foregoing Resolution, being
Resolution No. 4778
, was duly adopted by the City Council
of the City of Vernon, and was approved by the Mayor of said
City at a regular meeting of the City Council held on Tuesday,
March 17,
, 1981.
(SEAL)
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2/i~:l/81tITi - rev.
FINAL
FORM A
CENTRAL BASIN
IN-LIEU REPLENISH}ffiNT AGREE}lliNT
(THREE PARTY AGREEMENT)
(1981)
This Agreement is entered into as of the latest date
opposite the respective signatures of the parties hereto, by and
between said parties, CENTRAL AND '-VEST BASIN "vATER REPLENISHMENT
DISTRICT, a public entity ("Replenishment District" hereinafter),
CENTRAL BASIN MUNICIPAL WATER, a public entity ("Central Municipal"
or "Municipal" hereinafter) and
City of Vernon
("Producer" hereinafter).
A. DEFINITIONS.
As used hereinafter, including these definitions, the
following terms h~ve the following meanings:
"Allowed Pumping Allocation ('APA') for the current
administrative year ('CAY')" -- producers's APA for the
short administrative year, October 1, 1980 - June 30,
1981*, after all debits and credits to its APA resulting
from operation of the judgment as amended and subsequent
court order in the Central Basin Adjudication through
* 75% of the otherwise 12 months Allowed Pumping Allocation.
E X H I BIT "A"
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September 30, 1980, as increased and decreased by any subsequent
acquisitions, dispositions, leases or licenses of water rights in
Central Basin during and pertaining to said CAY (including but
not limited to Central Basin Exchange Pool operations) and
recognized by the lvatermaster in said adjudication for said
water year.
"Central Basin Adjudication" --the case of Central
and West Basin Water Replenishment District etc., Plaintiff
v. Charles E. Adams, et al., Defendants, Los Angeles Superior
Court No. 786656.
"Central Basin" -- the groundwater basin so defined~in
the Central Basin Adjudication.
"Central Basin Exchange Pool"
the Exchange Pool
under the Central Basin Adjudication.
"Imported l\Tater" -- M\~D water purchased by ProC:u,cer
from Municipal.
"In-Lieu Replenishment Rate" -- $86.00 per acre-fqot.
"In-Lieu Replenishment 'Water" -- Imported water sold
during said In-Lieu period as hereafter defined by Municipal
to Producer in lieu of groudwater Producer would have
extracted from Central Basin and qualifying for the in-
lieu replenishment rate and payments from the Replenishment
.
District under this Agreement.
"Groundwater, groundwater pumping, groundwater extractions"
and like terms shall mean such pumping or extractions only
from Central Basin.
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"MWD" -- The Metropolitan Water District of
'$
Southern California.
"In-Lieu Period" -- February'll, 1981. t}'lrough
June.l0, 1981.
"\.yater" and "Groundwater" -- mean only water which
has less than 1,000 parts of chlorides to 1,000,000 parts
of water.
B. RECITALS.
1. The Metropolitan Water District has instituted
an "in-lieu replenishment program", whereby it will sell
water to Municipal for resale to those producing ground~
water in Central Basin wi th M\vD connections during said
In-Lieu period at the In-Lieu Replenishment Rate (~.yD
replenishment water rates plus treatment cost). The
purposes of said program are: to use ~~D water during
said period in substitution of groundw~ter which would
otherwise be pumped during the period; and to accomplish
thereby replenishment of the groundwater basin. It is
not to substitute for ~vD surface water demands of
producers as they would otherwise exist.
2. Section 60230 (16) of the Water Code, applicable
to the Replenishment District, provides:
"(16)
Contracts for use of replenishment water.
To fix the terms and conditions of any contract under
which producers may agree voluntarily to use replen-
ishment water from a nontributary source in' lieu of
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groundwater, and to such end a district may become
a party to such contract and pay from district funds
such portion of the cost of such replenishment waters
as will encourage the purchase and use of such water
in lieu of pumping so long as the persons or property
within the district are direetly or indirectly
benefited by the resulting replenishment~.
3. Producer extracts groundwate.r from Central Basin
wells within the jurisdiction of Replenishment District,
and is bound by the Central Basin Adjudication. producer's
APA for the CAY as of the commencement thereof was
"
5.534.25 acre-feet.
4. Producer has a Central Municipal connection or
connections for the taking of imported water.
5. With respect to said CAY, Producer represents
that it has, after all offers of water to the Central
Basin Exchange Pool required of it in that case, sufficient
remaining pumping rights in Central Basin to comply with
this Agreement.
C. AGREEMENTS.
1. During s.aid: In-Lieu period, Producer'
agrees to use'.itsbest efforts' to 'increase its
purchases of imported water from Central Municipal above
what it would otherwise have purchased at municipal and
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.
(b) During said In-Lieti period,
Producer agrees to use its best efforts to increase its,
purchases of imported water from Central Municipal
above v.'hat it would otherwise have purchased at municipal
and domestic rates from that entity and reduce its
groundwater pumping to the same extent.
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(c) at the end of said In-Lieu period there shall be
totalled the number of acre feet by which Producer during said
In-Lieu period and for the entire CAY, has reduced its ground-
water extractions from Central Basin below its APA for the CAY.
To the extent during said In-Lieu period Producer has purchased
imported water from Central Municipal, but not in excess of said
total reduction in extractions, that quantity of imported water
shall then be deemed the quantity for which Producer is entitled
to be charged In-Lieu Replenishment Rates by Central Municipal.
Central Municipal shall cause appropriate adjustments and refunds
to Producer, subject to final adjustment as hereinafter provided.
Such adjustments shall be made and/or refunds shall be made by
Central Municipal at the billing time for the month next succeedin~
that in which Producer took In-Lieu Replenishment Water, based
on producer's good faith representations and subject to adjustment
at the end of the CAY as hereinafter provided.
(d) All calculations relative to purchase of imported
water under this Agreement are subject to adjustment under rules
of MWD and/or Central Municipal applicable to metered service.
All calculations relative to groundwater extractions are subject
to recalculation based on final figures as determined by the
.
Watermaster in the Central Basin adjudication for the CAY.
3. To be finally entitled to in-lieu replenishment
rates from Central Municipal and payments from Replenishment
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District under this Agreement ("said rates and payments"
hereinafter), Producer, as of the end of said CAY, must
have reduced its extractions from Central Basin during
the entirety of the said CAY (including for this purpose
those quantities sold, leased, or licensed to others, or
subscribed to the Exchange Pool, or otherwise produced
on behalf of Producer during, or on account of, said "', .
CAY) ,belo'j its APAfor said CAY. The maximum quantity
for which Producer shall be entitled to either and
both of said benefits shall be the lesser of the quantities
ultimately otherwise deemed water purchased at in-lieu
replenishment rates under paragraph 2 and the quantity
by which Producer shall have reduced extractions from
Central Basin in said CAY below its APA for said CAY.
Final adjustments shall be made after the end of said
CAY in accordance with subsequent provisions of this
Agreement.
4. Replenishment District agrees to pay to Producer
$34.00 per acre-foot with respect to any in-lieu replen-
ishment water purchased by Producer from Central 1-iunicipal
during said In-Lieu period as to the quantity that Producer
becomes finally entitled to such in-lieu replenishment
rates from Central Muncipal after final determinations
at the end of said CAY, and subject to the provisions of .:
paragraph 3 of this Part C and the remainder of this
Agreement. No later than thirty (3D) days after the
particular credit or repayment by Central Municipal to
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Producer under this Agreement, Replenishment District
shall remit to Producer 75% ($25.50) of said $34.00
per acre foot as to a like quantity, subject to final
adjustment.
5. If at" the end of said CAY, Producer shall have
reduced its groundwater extractions from Central Basin
by less than the quantity charged to it by Central
Municipal at in-lieu replenishment rates, Producer shall
remi~ to C~ntral Municipal for such difference in
quantity the amount which would have been charged to it
by Central l1unicipal apart from this Agreement, in
accordance with subsequent provisions of this Agreement.'
6. Within thirty (3D) days after the end of said
CAY,' Producer sl)al;t by YJ~itten'" notice certify and' .: -
transmit to Replenishment District and Central Municipal
the following:
(a) Separately, all inforrnatibn necessary
to compute the APA for said CAY of Producer in
Central Basin, together with copies of any and
all documents or papers related thereto, and not
previously transmitted;.
(b) The quantity of Producer's production of
groundwater from Central Basin during said CAY;
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(c) Whether the \vatermaster administering the
JUDgment in the Central Basin case, or any party
thereto, has maDe any contention which, if established,
woulD affect any of the quantities or computations
upon which is depenDent ProDucer's right to payment
from Replenishment District unDer this agreement,
and, if so, all information which it has in this
regard;
(d) The quantity of water purchased by PrODucer
from Central Municipal during said In-Lieu period
and billed to PrODucer or, adjusteD with PrODucer at
the in-lieu replenishment rate; and
(e) The quantity in acre feet for which it
claims the right to payment from the Replenishment
District under this agreement.
7. Within thirty (30) Days,after receipt of the written
notice provided for in paragraph 6 of this Part C above, the
Replenishment District, through its General Manager or other
authorized official, may determine that further Data or in-
vestigation is needed to support the claim of PrODucer for
payment, or for some part thereof. In such event, the Replen-
ish~ent District shall so notify Producer in writing, by
communication sent by first class mail and deposited in the
mails within said thirty (30) day period. PrODucer shall
cooperate fully by furnishing any and all business records
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and other information so requested. If no such investigation
is so commenced, payment of the balance from Replenishment
District pursuant to paragraph 4 shall be made to Producer by
Replenishment District within thirty (30) days from receipt
of said written notice required pursuant to paragraph 6 of this
Part C above. If investigation is commenced, payment shall ba
made when the Replenishment District is satisfied of Producer's
right thereto under this Agreement. Nothing herein contained
other than for the provisions of paragraph 9 of this Part C,
shall, however, prevent Producer, in the event of any disagreement
with the Replenishment District, from pursuing any amounts to
which it claims to be entitled under this Agreement in any court
of appropriate jurisdiction. Nothing herein contained or contained
elsewhere in this Agreement, except for the provisions of
. paragraph 8 of this Part C, shall prevent the Replenishment
District from recovering, through action in any court of
appropriate jurisdiction, any amounts paid under this Agreement
to Producer which it contends were not properly due and owing
to Producer, whether so paid by reason of mistake, or for any
other reason which would other wise entitle it to recover any
such sums.
8. Producer's entitlement to payment hereunder from
Replenishment District shall be finally determined based on the
relevant figures finally determined by Watermaster in its annual
report under the Central Basin adjudication for said CAY, in
conjunction with the quantity of imported ~ater sales by Central
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Municipal to Producer during said In-Lieu period at in-lieu
replenishment rates, and within the quantity determined pursuant
to paragraph 2 (c) of this Part C. Any amounts owing from
Replenishment District or Producer to the other shall be
promptly remitted. The provisions hereof are subject to the
provisions of paragraph 3 of this Part C.
9. To the extent Replenishment District has paid to Pro-
ducer on account of a quantity which 1S less than the quantity
of imported water billed or adjusted to Producer by Central
Municipal at in-lieu replenishment rates on account of purchases
during said In-Lieu period, and to the extent Producer has agreed
with the quantity upon which Replenishment Diestrict's payment
under said paragraph is so made, then Producer shall forthwith
remit to Central Municipal the difference between the in-lieu
replenishment rate and the rate which Central Municipal would
have otherwise charged per acre-foot as to said quantity
dif;ferential. Upon final determination by the Watermaster
pursuant to paragraph 8 of this Part C, any further adjustment
between Central Municipal and Producer or Replenishment District
and Producer shall be made, and the one owing money to the
other shall promptly remit the same.
10. P:foCIttcer agrees~
(a) The obligations of the other parties hereto
and rights of Producer are subject to interruption of
M\'i'D deliveries by reason of operational dif;ficulties of
HWD other than water avairability;
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(b) This Agreement may be terminated upon
twenty-one (21) days advance written notice to Pro-
ducer from Central MunicipaJ or Replenishment Distriet if either' har
received written notice of such termination from
~~ of MWD's in-lieu replenishment program. In such
event, this Agreement shall be applied to the
abbreviated period.
(e) For the total aere-feet for which Producer
is entitled to receive payment from Replenishment
District, as finally determined, Producer agrees that
such quantity of its APA for the CAY shall not be extracted
in that CAY or carried over into any subsequent administrative
year, or other period, under the Central Basin Adjudication:
This Agreement shall constitute a quitclaim of the right
to use such quantity, and the Watermaster under the
Central Basin Adjuducation lS expressly authorized to
deduct such quantity as if it had been'purnped or extracted
from Central Basin by Producer during said CAY.
11. All notices which are required or may be sent
under this Agreement may be sent by first class mail, properly
addres~ed, with postage prepaid, and depos~ted in the united
States mails, addressed to the addressee as follows:
TO:
Central Municipal and/or
7439 East Florence
Downey, California
(to the attention of its
Replenishment District: at
Avenue
90240
General Manager)
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Da t'e
To the Producer:
, 1981
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By
President
By
Secretary
).,' 4/ H i ttffi . ..
Date
, 1981
(Titles and capacities
of persons executing on
behalf of Producer should
be set forth)
Date
, 1981
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CENTRAL AND WEST BASIN WATER
REPLENISHMENT DISTRICT
.
By
President
By
.
Secretary
B~~)
By
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