Resolution No. 6173
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RESOLUTION NO. 6173
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN IN-LIEU REPLENISHMENT AGREEMENT, JULY 1,
1992-JUNE 30, 1993, BY AND BETWEEN THE CITY OF
VERNON AND THE WATER REPLENISHMENT DISTRICT OF
SOUTHERN CALIFORNIA
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WHEREAS, the Central Basin Municipal Water District is a
member agency of the Metropolitan Water District; and
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WHEREAS, the ci ty of Vernon purchases water from the
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Central Basin Municipal Water District; and
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WHEREAS, the Metropolitan Water District has adopted a
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program whereby "water producers" of member agencies may purchase
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water on a restricted basis during specific months at an "In-Lieu"
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replenishment rate; and
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WHEREAS, the purpose of these "In-Lieu" programs is to use
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imported water during said In-Lieu periods at a reduced rate in
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substitution of groundwater which would otherwise be pumped during
that period, thereby replenishing the groundwater basin; and
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WHEREAS, the Central and West Basin Water Replenishment
District ("Replenishment District") was formed to carry out
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replenishment functions; and
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WHEREAS, the City Council of the city of Vernon first
entered into an In-Lieu Replenishment Agreement in 1978 between the
City of Vernon and the Central and West Basin Replenishment
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District, and on November 5, 1991 by Resolution No. 6011 approved
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and authorized the execution of the In-Lieu Replenishment Agreement,
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July 1, 1991-June 30, 1992; and
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WHEREAS, the Central and West Basin Water Replenishment
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District now is known as the Water Replenishment District of
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Southern California; and
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WHEREAS, the City Administrator has recommended the
2 approval of the In-Lieu Replenishment Agreement, July 1, 1992-June
3 30, 1993.
4 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
5 CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon hereby
7 finds and determines that the recitals contained hereinabove are
8 true and correct.
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SECTION 2: The City Council of the city of Vernon hereby
10 approves the In-Lieu Replenishment Agreement, July 1, 1992-June 30,
11 1993, a copy of which has been presented to the City Council
12 concurrently with this resolution, and the City Council hereby
13 orders said Agreement to be received and filed by the city Clerk.
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SECTION 3: The City Council of the City of Vernon hereby
15 authorizes the Mayor and the city Clerk to execute said Agreement
16 for, and on behalf of, the City of Vernon.
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SECTION 4:
The City Clerk of the City of Vernon shall
18 certify to the passage of this resolution, and thereupon and
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thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 20th day of October, 1992.
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BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA )
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2 COUNTY OF LOS ANGELES )
3 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon,
4 do hereby certify that the foregoing Resolution, being Resolution
5 No. 6173, was duly adopted by the City Council of the City of Vernon
6 at a regular meeting of the City Council was duly held on Tuesday,
7 October 20, 1992, and thereafter was duly signed by the Mayor of the
8 City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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Central Basin
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September 18, 1992
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IN-LIEU REPLENISHMENT AGREEMENT
July1, 1992-June30, 1993
THIS AGREEMENT is entered into as of the latest date opposite the respective
signatures of the parties hereto, by and between WATER REPLENISHMENT
DISTRICT OF SOUTHERN CALIFORNIA, a public entity ("Replenishment District"
hereinafter), and City of Vernon ("Producer"
hereinafter) .
A. DEFINITIONS.
As used hereinafter, including these definitions, the following terms have the
following meanings:
"Allowed Pumping Allocation" ('APA') for the current administrative year ('CAY')"
-- Producer's APA for the administrative year, July 1, 1992 - June 30, 1993, 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 June 30, 1992, 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
Watermaster in said Adjudication for said water year, or otherwise finally determined
under that judgment.
"Central Basin Adjudication" -- the case of Central and West Basin Water
Replenishment District. etc.. Plaintiff vs. Charles E. Adams. et at. Defendants.
Los Angeles Superior Court No. 786656.
"Central Basin" -- the groundwater basin so defined in the Central Basin
/"\djudication.
"Central Basin Exchange Pool" -- the Exchange Pool under the Central Basin
Adjudication.
"Central Municipal" -- Central Basin Municipal Water District.
"Imported Water" -- MWD water purchased by Producer from MWD, or from
Central Municipal.
"Reclaimed Water" -- Water purchased from any water Reclamation Facility
which meets all quality standards applicable to the use proposed by Producer.
"Reclamation Facility" -- A facility producing reclaimed water for resale pursuant
to all applicable permits.
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. ,Central Basin
September 18, 1992
"In-Lieu Replenishment Water" -- Imported water sold by MWD and reclaimed
water sold during said In-Lieu period as hereafter defined to Producer for water
service in the area overlying Central Basin and contiguous areas, in lieu of
groundwater Producer would have extracted from Central Basin and qualifying
for 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.
"MWD" -~ The Metropolitan Water District of Southern California.
"In-Lieu Period" -- the CAY.
"Water" and "Groundwater" -- nean only water which has less than 1,000 parts
of chlorides to 1,000,000 parts of water.
B. RECITALS.
1. Replenishment District has established an In-Lieu Replenishment Program
under the authority of Water Code Section 60230 (16). The purposes of said In-Lieu
program are to use imported and/or reclaimed water during said In-Lieu period in
substitution of groundwaterwhich would otherwise be pumped during the period, and to
accomplish thereby replenishment of the groundwater basin.
2. Producer extracts groundwater 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 is presently not known. As soon as
known, the parties shall execute a letter supplement hereto with the appropriate figure.
3. Producer has a connection or connections for the taking of imported and/or
reclaimed water, serving customers served by its groundwater production from Central
Basin. All references hereinafter to Producer's purchases or Producer's purchases of
imported and/or reclaimed water, shall be deemed to include only purchases of
imported and/or reclaimed water through said Connections.
4. 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.
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. Central Basin
September 18, 1992
C. AGREEMENTS. The parties agree as follows:
1. Within thirty days after this agreement has been executed by both parties and
received by Producer, Producer shall furnish in writing to District Producer's estimate of
the quantity of water which will come under this agreement. Such estimate may be
increased from time to time upon written request and with written approval of District's
General Manager. Within said estimate, Producer in said in-lieu period agrees: (a) to
use its best efforts to increase its purchases of imported water and/or purchase
reclaimed water by surface delivery for resale to customers or Producer's own use
("use by Producer" hereinafter) above what it would otherwise have purchased from
MWD and Central Municipal during said In-lieu period, and (b) during the entirety of
said CAY to reduce its groundwater extractions from Central Basin in accordance with
subsequent provisions of this Agreement. The converse of "best efforts" shall include
existing restrictions, practical or otherwise, or those which may develop, on Producer's
ability to take reclaimed water and/or increased quantities of imported water, and the
economics of this Agreement as they may develop in connection with Producer.
However, except for refunds of overcredits and overpayments under this Agreement,
Producer shall not become liable to Replenishment District for failing to increase its
purchases of imported and/or reclaimed water or to reduce its groundwater extractions
from Central Basin.
2. All calculations relative to purchase of imported and reclaimed water under
this Agreement are subject to adjustment under rules of MWD, and Central Municipal,
applicable to metered service to Producer. 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 payments from Replenishment District under this
Agreement ("said 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 Excnange Pool or otherwise produced on behalf of Producer during
or on account of said CAY) below its APA for said CAY. The maximum quantity for
which Producer shall be entitled to said payments shall be the lesser of the quantities
of: imported MWD water and/or reclaimed water purchased by Producer through
surface delivery for the purposes and uses set forth in Paragraph 1 of this Part C during
the In-Lieu period; 110% of the written estimate, as revised, given under paragraph 1;
and, subject to the next succeeding two sentences, 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. See Paragraph 12 of this Part C for
modification in event of earlier termination.
4. Replenishment District agrees to pay to Producer the total amount determined
as follows with r~spect to any In-lieu Replenishment Water purchased by Producer
during said In-lieu period for which Producer becomes entitled to said payments from
Replenishment District, 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.
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. Central Basin
September 18, 1992
(a) There shall be determined the quantity of imported water purchased
during the CAY by Producer at the Seasonal Storage Rate from either MWD or Central
Municipal. The resulting quantity, to the extent Producer is otherwise entitled to
payment under Paragraph C3 and the remainder of this Agreement, shall be paid for at
the rate of $ 65 per acre foot.
(b) The quantities determined under Paragraph C3 shall be reduced by
the quantity resulting from application of Paragraph C4(a). Any remaining quantity of
In-Lieu Replenishment Water for which Producer is otherwise entitled to payment under
Paragraph C3 as so applied under this subparagraph (b) and the remainder of this
agreement .shall be paid for at the rate of $ 75 per acre foot.
5. Within thirty (30) days after the end of said CAY, or at the earliest practicable
date, whichever is later, Producer shall by written notice certify and transmit to
Replenishment Districtthe following:
(a) Separately, all information 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;
(c) Whether the Watermaster 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 computation 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 quantities of imported water purchased by Producer from MWD
and/or Central Municipal during said In-Lieu period at said Seasonal
Storage Rate and claimed as "In-Lieu Replenishment Water",
(e) The quantities of reclaimed water purchased by Producer from
Reclamation Facilities during said in-Lieu period and claimed as "In-Lieu
Replenishment Water"; and
(f) The respective quantities in acre-feet for which Producer claims the
right to payment under this agreement at the Seasonal Storage Rate of
$ 65 per acre foot and the Reclaimed Water Rate of $ 75 per acre
foot.
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'. . Central Basin
September 18, 1992
6. Within thirty (30) days after receipt of the written notice provided for in
Paragraph 5 above, the Replenishment District, through its General Manager or other
authorized official, may determine that further data or investigation is needed to support
the claim of Producer for payment, or for some part thereof. In such event, the
Replenishment 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 and other information
so requested. If no such investigation is so commenced, payment from Replenishment
District pursuant to Paragraph 4 shall be made to Producer by Replenishment District
within thirty (30) days ;~om receipt of said written notice required pursuant to Paragraph
5 of this Part C above. :f investigation is commenced, payment shall be made when the
Replenishment District is satisfied of Producer's right thereto u,nder this Agreement.
Nothing herein contained, other than for the provisions of Paragraph 7 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 7 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 otherwise entitle it to
recover any sums.
7. 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 and reclaimed water sales to Producer during
said In-Lieu period, and within the quantities determined pursuant to Paragraph 2 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
Paragraphs 3 and 4 of this Part C.
8. Upon final determination by the Watermaster pursuant to Paragraph 7 of this
Part C, any further adjustment between Producer and Replenishment District shall be
made, and the one owing money to the other shall promptly remit the same.
9. Replenishment District may make interim payments on account to Producer
at the lowest rate payable to Producer under this agreement, but in the event of any
overpayment, Producer shall remit promptly the overpayment to District plus interest at
twelve percent (12%) per annum from the date of overpayment. Interim payments shall
be based on Watermaster summary sheets, and, if requested, upon written
representations of Producer as to its intentions.
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, . Central Basin
September 18, 1992
10. For the total acre-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 Adjudication is expressly authorized to deduct
such quantity as if it had been pumped or extracted from Central Basin by Producer
during said CAY.
11. It is Producer's responsibility to determine the availability of, and arrange for
delivery of, imported and reclaimed water of a category and at a price satisfactory to
Producer. Producer shall indemnify Replenishment District and hold it harmless from
and against any and all claims and causes of action, howsoever arising, related to the
use of any recl~imed water pursuant to this Agreement.
12. This Agreement is subject to termination without cause by Replenishment
District upon thirty (30) days written notice to Producer. In the event of such
termination, this Agreement shall be applied in accordance with its terms except that
the "maximum quantity for which Producer shall be entitled to said payments..:' (see
Part C, Paragraph 3, second sentence) shall be further limited to the quantity of
imported and/or reclaimed water purchased by Producer through surface delivery for
the purposes and uses set forth in Paragraph 1 of this Part C during that part of the
In-Lieu period ending with the date of termination. Other provisions of this Agreement
shall be deemed modified accordingly in the event of such termination.
13. All notices which are required or may be sent under this Agreement may be sent
by First Class. mail, properly addressed, with postage prepaid, and deposited in the
United States Mail, addressed to the addressee as follows:
TO: WATER REPLENISHMENT DISTRICT
OF SOUTHERN CALIFORNIA
12621 166th Street
Cerritos, Ca 90701
ATTN: John Norman
General Manager
TO: (Producer) Please fill in:
Victor H. Vaits
City of Vernon
4305 Santa Fe Avenue
Vernon, CA. 90058
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.Central Basin
Septem ber 18, 1992
The above addresses may be changed by written notice actually received by the
addressee. Except with regard to the written notices which the Replenishment District
may furnish to the Producer pursuant to Paragraphs 6 and 12 of this Part C, no notice
under or pursuant to this Agreement shall be effective as such unless actually received
by the party entitled thereto within any time period provided in this Agreement. Any
such notice from Replenishment District to Producer pursuant to Paragraph 6 or
Paragraph 12 of this Part C shall be effective upon deposit in the United States Mail.
This Agreement shall be effective as of July 1, 1992.
WHEREFORE, the parties have executed this Agreement as of the date
appearing opposite tlfeir signatures.
DA TED:! 1 - 0). I 1992
By:
NISHMENT DISTRICT
ER ALlFORNIA
DATED: 1~J;..ii ,1992
,
City of Vernon
(Name of Producer)
(Titles and capacities
of persons executing
on behalf of Producer
should be set forth.)
~y;
ATTEST By:
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Leon. is ? Malb rg, M.ay~r .
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Bruce V. Halkenhorst, City Clerk
APPROVED AS TO FORH:
p~ ""'~A~
David B. Brearley, Cit Attorney
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