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Resolution No. 6287 .. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 , RESOLUTION NO. 6287 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN IN-LIEU REPLENISHMENT AGREEMENT, JULY 1, 1993-JUNE 30, 1994, BY AND BETWEEN THE CITY OF VERNON AND THE WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA WHEREAS, the Central Basin Municipal Water District is a member agency of the Metropolitan Water District; and WHEREAS, the City of Vernon purchases water from the Central Basin Municipal Water District; and WHEREAS, the Metropolitan Water District has adopted a program whereby "water producers" of member agencies may purchase water on a restricted basis during specific months at an "In-Lieu" replenishment rate; and WHEREAS, the purpose of these "In-Lieu" programs is to use imported water during said In-Lieu periods at a reduced rate in substitution of groundwater which would otherwise be pumped during that period, thereby replenishing the groundwater basin; and WHEREAS, the Central and West Basin Water Replenishment District ("Replenishment District") was formed to carry out replenishment functions; and 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 District, and on October 20, 1992 by Resolution No. 6173 approved and authorized the execution of the In-Lieu Replenishment Agreement, July 1, 1992-June 30, 1993; and WHEREAS, on April 27, 1993 by Resolution 6240, the City Council approved and authorized the execution of an addendum to said .. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 " . . In-Lieu Replenishment Agreement, which permitted the City to purchase additional In-Lieu water at substantial savings; and WHEREAS, the Central and West Basin Water Replenishment District now is known as the Water Replenishment District of Southern California; and WHEREAS, the City Administrator has recommended the approval of the In-Lieu Replenishment Agreement, July 1, 1993-June 30, 1994. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the city of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the In-Lieu Replenishment Agreement, July 1, 1993-June 30, 1994, a copy of which has been presented to the City Council concurrently with this resolution, and the City Council hereby orders said Agreement to be received and filed by the City Clerk. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor and the City Clerk to execute said Agreement for, and on behalf of, the City of Vernon. III III III III III III -2- " .. 20 21 22 23 24 25 26 27 28 " I 1 SECTION 4: The City Clerk of the City of Vernon shall 2 certify to the passage of this resolution, and thereupon and 3 thereafter the same shall be in full force and effect. 4 5 APPROVED AND ADOPTED this 6th day of July 6, 1993. --~. EONIS C. MALBURG, Mayor 6 7 8 ATTEST: 9 A -- /4~ 10 11 BRUCE V. MALKENHORST, City Clerk 12 13 14 15 16 17 18 19 -3- .. , ~ . 1 STATE OF CALIFORNIA ) )ss COUNTY OF LOS ANGELES ) 2 3 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution 4 5 No. 6287, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council was duly held on Tuesday, 6 7 July 6, 1993, and thereafter was duly signed by the Mayor of the City of Vernon. 8 9 10 11 12 ( SEAL) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -4- ..." .~ ~ ~dt?7 ,.~ IN-LIEU REPLENISHMENT AGREEMENT (CENTRAL BASIN AND WEST COAST BASIN: July 1, 1993 - June 30, 1994) THIS AGREEMENT is entered into as of AUGu~) r !5; 199:4 by and between WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA, a public entity hereinafter "WRD") and Cr T'1 Ol=- \;{S7ft0or--.J (hereinafter "Producer"). RECIT AL$ Pursuant to the case of Central and West Basin Water Replenishment District. et al.. vs. Charles E. Adams. et al.. Los Angeles Superior Court No. 786656, ("Central Basin Adjudication") or the case of California Water Service Company et at. v. City of Compton; et .aJ...., Los Angeles Superior Court Case No. 506806, ("West Coast Basin Adjudication"), Producer is entitled to pump a certain amount of groundwater from the Central Basin or the West Coast Basin. The amount which Producer is entitled to pump varies from year to year and is referred to as "Current Allocated Pumping Rights" ("CAPR") for the purposes of this Agreement. This In-lieu Replenishment Agreement is authorized by California Water Code ~60230(p). In order to limit Producer's extraction of groundwater from the Central Basin or the West Coast Basin, as the case may be, WRD wishes to retire Producer's unused CAPR, and Producer is willing to retire such rights pursuant to the terms of this Agreement. AGREEMENTS The parties agree as follows: 1. Reduction in Pumping. Producer agrees to use its best efforts to decrease the amount of water it pumps from the groundwater basins. However, Producer shall not become liable to WRD for failing to decrease its groundwater extractions from the groundwater basins, except to the extent of payments made to Producer by WRD pursuant to this Agreement. 2. Producer's Statement of Rights to b~ Retired. Within thirty (30) days after the date of this Agreement, Producer shall furnish in writing to WRD a statement of the amount of Producer's CAPR to be retired under this Agreement for each quarter during the current administrative year. Such statement may be revised thereafter only with the written approval of WRD. WRD shall rely on such statement in making payments hereunder during the current administrative year. June 9, 1993 1 ~' ^ . 3. Entitlement to In-Lieu Payment. To be finally entitled to payments from WRD under this Agreement, Producer must have pumped, transferred to others, or otherwise retired less than all of its CAPR during the current administrative year. WRD will pay Producer the rate of payment defined below for each acre-foot of CAPR not pumped, transferred to others (whether by lease or otherwise), or otherwise retired. The maximum quantity of Producer's CAPR which will be paid for pursuant to this Agreement will be one hundred ten percent (110%) of the sum of the quarterly amounts set forth in Producer's statement pursuant to Paragraph 2 above. 4. Rate of Payment. All payments under this contract shall be made by WRD at the rate of one hundred ten dollars ($110) per acre~foot. 5. Additional. Documentation. At any time during the term of this Agreement, WRD may determine that further data or investigation is needed to support the claim of Producer for payment under this Agreement, and may request that Producer provide such further data or allow such further investigation. WRD shall have the right to withhold payment until any such additional data is provided or any necessary investigation is completed, and until WRD is satisfied that Producer is entitled to payment hereunder. Nothing herein shall prevent WRD from recovering any amounts paid under this Agreement from Producer which WRD contends. were not properly due and owing to Producer, whether such payments were made by reason of mistake or otherwise. 6. Watermaster Data Conclusive. Payments hereunder are contingent upon Producer's providing all required reports of production to Watermaster and upon Producer's full compliance with the applicable basin adjudication order. Any payments made hereunder by WRD shall be finally determined based on the data determined by Watermaster in its annual report under the relevant basin adjudication for the current administrative year. Any discrepancies shall be immediately rectified and any amounts owing between WRD and Producer shall be prqmptly paid. 7. Quarterly Estimated In-Lieu Payments. Estimated payments under this Agreement shall, unless otherwise agreed, be made to Producer. by WRD on a quarterly basis. Each quarterly payment shall be calculated by multiplying the Producer's rights to be retired for that quarter pursuant to Producer's statement of CAPR (given pursuant to Paragraph 2) by the in-lieu payment amount pursuant to Paragraph 4) . Payment shall be due within ninety (90) days following the end of a quarter, unless otherwise agreed. To the extent that quarterly payments made pursuant to this Agreement fail to compensate for all unused CAPR for the current administrative year (subject to the 110% cap provided in Paragraph 3), WRD shall make payment for any such rights within 60 days of receipt of Watermaster's final report of production for such year. June 9, 1993 2 :lI," 8. Quitclaim of Pumping Rights. For all CAPR paid for by WRD pursuant to this Agreement, this Agreement shall constitute a quitclaim, effective as of the date of such payment, of such water rights, and Watermaster is expressly authorized to deduct such quantity as if it had been pumped or extracted from the applicable groundwater basin by Producer during the current administrative year. Each quarterly payment, when made, shall be deemed to be in lieu of all of the estimated production for that quarter given pursuant to Paragraph 2, above, and shall immediately cause the retirement of such rights. Producer expressly acknowledges that any payments made hereunder are received in lieu of the exercise of such rights, and that such rights are irrevocably retired for such year upon receipt of payment. 9. Terminqtion. This Agreement is subject to termination with or without cause by WRD or Producer upon five (5) days written notice, such notice to be deemed effective upon personal delivery or two days after mailing to the appropriate address as listed in Paragraph 1 0 below. This Agreement is effective for the current' administrative year only and shall automatically terminate at the end of such year. 10. Notices. All notices under this Agreement may be sent by first class U.s. Mail, with postage prepaid, addressed to the appropriate addressee as follows: TO: WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA 12621 East 166th Street Cerritos, CA 90701 Attention: General Manager TO: Producer: CITY OF VERNON 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Victor.H. Vaits 11. Attorneys' Fees. If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to its reasonable attorneys' fees. 12. Injunctive Relief. The parties acknowledge and agree that monetary damages would be inadequate to compensate WRD for loss of groundwater recharge in the event of Producer's breach. Accordingly, it is agreed that injunctive relief shall be available to enforce the provisions of this Agreement, whether such action is brought under the court's continuing jurisdiction pursuant to the applicable basin judgment, or in a separate action brought for that purpose. June 9, 1993 3 " ..~ 13. Authority to Execute. Each person executing the Agreement below hereby declares that he or she has appropriate authority to enter into this Agreement on behalf of the party that person represents. 14. Governing Law. This Agreement shall be interpreted and enforced under the laws of the State of California. WHEREFORE, the parties have executed this Agreement as of the date appearing opposite their signatures. DATED: AUG()ST.5 I 1 993 WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA By: DATED: ~~7 I' , 1 993 CITY OF VERNON (Name of Producer) (Titles and capacities of persons executing on behalf of Producer should be set forth.) ATTEST By: ~- City Clerk Approved as to Form: ltd~B~\'':?e~ 7/1l/J} City Attorney June 9, 1993 4