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Resolution No. 76411 RESOLUTION NO. 7641 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 3 VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN IN -LIEU REPLENISHMENT AGREEMENT (CENTRAL BASIN AND 4 WEST COAST BASIN: JULY 1, 2000-JUNE 30, 2001) BY AND BETWEEN THE CITY OF VERNON AND THE WATER 5 REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA 6 7 WHEREAS, the Central Basin Municipal Water District is a 8 member agency of the Metropolitan Water District, and the City of 9 Vernon as a purchaser of water from the Central Basin Municipal Water 10 District is designated a `water producer;"and 11 WHEREAS, the Metropolitan Water District has adopted a 12 program whereby `Water producers" of member agencies may purchase 13 water on a restricted basis during specific months at an `an -Lieu" 14 replenishment rate; and 15 WHEREAS, the Water Replenishment District of Southern 16 California (`Replenishment District")was formed to carry out 17 replenishment functions in the Central Basin and West Coast Basin; and 18 WHEREAS, the City Council of the City of Vernon first entered 19 into an In -Lieu Replenishment Agreement in 1978 with the Replenishment 20 District and has entered into such agreements annually thereafter; and 21 WHEREAS, the purpose of these `zn-Lieu" programs is to use 22 imported water during said In -Lieu periods at a reduced rate in 23 substitution of groundwater which would otherwise be pumped during 24 that period, thereby allowing the groundwater basin to be replenished; 25 and 26 WHEREAS, by letter dated September 19, 2000, the City Clerk 27 has recommended the approval of the Replenishment District In -Lieu 28 Replenishment Agreement (Central Basin and West Coast Basin: July 1, 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 2000-June 30, 2001). 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 (Central Basin and West Coast Basin: July 1, 2000-June 30, 2001), a copy of which is attached hereto as Exhibit "A" and made a part hereof. 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. SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or his designee, to transmit two fully executed Agreements prior to November 30, 2000, to: Water Replenishment District of Southern California Attn: Melinda Sperry, Senior Engineer 12621 E. 166"' Street Cerritos, CA 90703 SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 3rd day of October, 2000. ATTEST� L BRUCE V. MALKENHORST, City Clerk LEONIS C. M]ALBURG,YMayor -2- 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 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 7641, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, October 3. 2000, and thereafter -was duly signed by the Mayor.of the City of Vernon. BRUCE V. MALKENHORST, City Clerk (SEAL) -3- EXHIBIT IN -LIEU REPLENISHMENT AGREEMENT (CENTRAL BASIN AND WEST COAST BASIN; July 1, 2000 - June 30, 2001) THIS AGREEMENT is entered into as of by and between WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA, a public entity hereinafter "WRD") and CITY of VERNON "Producer"). {hereinafter RECITALS Pursuant to the judgment in the case of Central and West Basin Water Replenishment District. et al vs Charles E. Adams et a! Los Angeles Superior Court No. 786656, ("Central Basin Adjudication") or the case of California Water Service Company et al. v City of Compton et al., Los Angeles Superior Court Case No. ,N06806, ("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. The Department of Water Resources of the State of California was appointed by the court to act as Watermaster for both the West and Central Basins. Watermaster is required to assist the court in the administration and enforcement of the judgment This In -lieu Replenishment Agreement is authorized by California Water Code §60230(p). In order to limit Producers extraction of groundwater from the Central Basin or the West Coast Basin, as the case may be, WRD wishes to retire all or a portion of Producer's unused CAPR and Producer is willing to retire such rights pursuant to the terms of this Agreement. Producer must participate in MWD's Seasonal Storage Program and must qualify for Seasonal Storage Service Water to be eligible to participate in the in -Lieu Replenishment Program. The amount of rights retired eligible for In -Lieu payment shall not exceed one hundred and twenty percent (120%) of the long-term credits certified under the MWD Seasonal Storage Program by Producer. AGREEMENTS The parties agree as follows: 1. Reduction in Pumping Producer agrees to use its best efforts to increase purchases of imported water above what it would otherwise purchase during the Seasonal Storage period a9 set by MWD and thereby decrease the amount of water it pumps from th� groundwater ba6ins. However, Producer shall. hot become liable for WRD for failing to increase Its imported water purchases and decrease its groundwater Page 2 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 be Retired An estimate of the amount of Producer's CAPR to be retired under this Agreement for each quarter during the current administrative year is contained in Attachment A. This estimate may be revised thereafter only with the written approval of WRD. WRD shalt rely on such statement in making payments hereunder during the current administrative year. 3. Entitlement to In -Lieu Payment To be finally entitled to pay ments from WRD under this Agreement for unused CAPR in a particular basin, Producer must have Pumped, transferred to others, or otherwise retired less than all of its CAPR in that basin during the current administrative year. Prior to becoming eligible for. payments hereunder, producer must have received Seasonal Storage Service Cumulative Long - Term Credits in such basin from Metropolitan Water District for 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 that was certified for Seasonal Storage Service Long -Term credit. The maximum quantity of Producer's CAPR which will be paid for pursuant to this Agreement will be the lessor of the sum of the quarterly amounts set forth in Producers statement pursuant to Paragraph 2 above or one hundred twenty percent (120%) of the Seasonal Storage Service Cumulative Long -Term credits certified. 4. Rate of Payment. Payments to producers in the Central Basin under this contract shall be made by WRD at the rate of one hundred sixty-two dollars ($162) per acre-foot. Payments to producers in the West Coast Basin under this contract shall be made by WRD at the rate of two hundred nineteen dollars ($21 J) 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 property 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 promptly paid. Page 3 7. Quarterly. Estimated In -Lieu PavmQnts 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 cap provided in Paragraph 3), WRD shall make payment for any such rights within 90 days of receipt of Watermaster's final report of production for such year. 8. Retirement of Pumping Ricahts For all CAPR paid for by WRD pursuant to this Agreement, this Agreement shall constitute a retirement of rights, effective as of the state 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 acknowied es that any y 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. Termination. 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 10 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 90703 ATTN: MELINDA SPERRY TO: Producer: CITY of VERNON 4305 SAM FE AVENUE M.RNnN ALIFORNIA 90058 ATTN: SAMUEL KEVIN WILSON Page 4 Attorners Fees 1f any action at law or in the provisions of this A regimen the Prevailing equity is brought to enforce or interpret attorneys' fees. g t' P g Party shall be entitled to its reasonable 12• Iniunctive Relief The parties acknowledge and agree that mov would be inadequate to compensate WRD for loss of groundwag es ter recharge dams Of Producer's breach. Accordingly, it is agreed that injunctive relief shall be in 1 eeevent enforce the provisions of this Agreement, whether such action is broughtto courts continuing jurisdiction pursuant to the applicable basin judgment or in r Separate action brought for that purpose. a 13_ Authorifir to Execute Each person executing the Agreement below declares that he or she has appropriate authority to enter into this A ern nt on Of the party that person represents. 9 on behalf 14. Governing Law This Agreement shall be interpreted and enforced under the laws of the State of California. The following attachment is hereby made a part of this AGREEMENT. Attachment A Estimate of Rights to be Retired. WHEREFORE, the parties have executed this Agreement as of the date appearing opposite their signatures. HATED: DATED: (Tiles and capacities of Persons executing on behalf of Producer should be set forth.) By APPROVED AS TO FORM: By: Eduardo Olivo, City Attorney WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA Brian Brady, Interim General Manager Leonis C. Malburg, MAYOR Bruce V. Malkenhorst, CITY ADMINISTRATOR Estimate of Rights to be Retired 2000-2001 WRD In -Lieu Replenishment Program Agency City of Vernon Contact Samuel Kevin Wilson Phone # 023) 583-8811 Fax # 023) 585-4661 Estimate of Rights to be retired: re Central Basin West Basin Oct - Dec 2000 1164.04 Jan - March 2001 1119.87 April - June 2001 '149.96 Total Estimate 2633.87 AF AF Attachment A 1f --coo Date SUPPORTING DOCUMENTS CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 January 18, 2001 Ms. Melinda Sperry, Senior Engineer Water Replenishment District of Southern CA 12621 E. 166th Street Cerritos, CA 90703 Re: In -Lieu Replenishment Agreement Dear Ms. Sperry: EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 DAVE TELFORD Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 The aforementioned agreement was approved by the Vernon City Council on October 3, 2000 through Resolution No. 7641. However, please have Mr. Brian Brady sign the agreement and retain a fully executed copy and return the original to me. Your prompt attention to this matter would be greatly appreciated. Very truly yours, Cloria J. Oro o Chief Deputy ity Clerk GJO/mt cc: S. Kevin Wilson, Director of Community Services & Water ` CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem WM. "BILL" DAVIS Councilman H. "LARRY" - GONZALES Councilman W. MICHAEL MCCORMICK Councilman BRUCE V MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 Eduardo Olivo, City Attorney 8135 Florence Avenue Suite 202 Downey, CA 90240 EDUARDO OLIVO City Attorney FAX: (562) 927-8722 KEVIN WILSON Director of Community Services & Water, FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 DAVE TELFORD Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 October 10, 2000 Dear Mr . vo Re: In -Lieu Replenishment Agreement Central Basin and West Coast Basin July 1, 2000 - June 30, 2001 Enclosed you will find two originals of the aforementioned agreement. Please sign both as required and mail them back to us as soon as possible. aoriVvertrulyyours, a J. Orosco Chief Deputy City Clerk GJO/ng I IN -LIEU REPLENISHMENT AGREEMENT (CENTRAL BASIN AND WEST COAST BASIN: July 1, 2000 - June 30, 2001) THIS AGREEMENT is entered into as of /o by and between WATER REPLENISHMENT DISTRICT OF SOOT ER CALIFORNIA, a public entity hereinafter "WRD") and CITY of VERNON (hereinafter "Producer"). RECITALS Pursuant to the judgment in 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 al. v. City of Compton. et al., 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. The Department of Water Resources of the State of California was appointed by the court to act as Watermaster for both the West and Central Basins. Watermaster is required to assist the court in the administration and enforcement of the judgment. 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 all or a portion of Producer's unused CAPR and Producer is willing to retire such rights pursuant to the terms of this Agreement. Producer must participate in MWD's Seasonal Storage Program and must qualify. for Seasonal Storage Service Water to be eligible to participate in the In -Lieu Replenishment Program. The amount of rights retired eligible for In -Lieu payment shall not exceed one hundred and twenty percent (120%) of the long-term credits certified under the MWD Seasonal Storage Program by Producer. AGREEMENTS The parties agree as follows: 1. Reduction in Pumping. Producer agrees to use its best efforts to increase purchases of imported water above what it would otherwise purchase during the Seasonal Storege period at set by MWD and thereby decrease the amount of water it pumps from th� groundwater ba6ins. However, Producer shall hot become liable to, WRD for failing to increase Its imported water purchases and decrease its groundwater Page 2 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 be Retired. An estimate of the amount of Producer's CAPR to be retired under this Agreement for each quarter during the current administrative year is contained in Attachment A. This estimate 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. 3. Entitlement to In -Lieu Payment. To be finally entitled to payments from WRD under this Agreement for unused CAPR in a particular basin, Producer must have pumped, transferred to others, or otherwise retired less than all of its CAPR in that basin during the current administrative year. Prior to becoming eligible for payments hereunder, producer must have received Seasonal Storage Service Cumulative Long - Term Credits in such basin from Metropolitan Water District for 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 that was certified for Seasonal Storage Service Long -Term credit. The maximum quantity of Producer's CAPR which will be paid for pursuant to this Agreement will be the lessor of the sum of the quarterly amounts set forth in Producer's statement pursuant to Paragraph 2 above or one hundred twenty percent (120%) of the Seasonal Storage Service Cumulative Long -Term credits certified. 4. Rate of Payment. Payments to producers in the Central Basin under this contract shall be made by WRD at the rate of one hundred sixty-two dollars ($162) per acre-foot. Payments to producers in the West Coast Basin under this contract shall be made by WRD at the rate of two hundred nineteen dollars ($219) 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 promptly paid. Page 3 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 cap provided in Paragraph 3), WRD shall make payment for any such rights within 90 days of receipt of Watermaster's final report of production for such year. 8. Retirement of Pumping Rights. For all CAPR paid for by WRD pursuant to this Agreement, this Agreement shall constitute a retirement of rights, 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. Termination. 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 10 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 90703 ATTN: MELINDA SPERRY TO: Producer: CITY OF VERNON 4305 SANTA FE AVENUE ypgNON CALIFORNIA 90058 ATTN: SAMUEL KEVIN WILSON Page 4 11. Attornevs' 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.. Iniunctive Relief. The parties acknowledge and agree that monetary damages would be inadequate to compensate WRD for loss of groundwater recharge in the event of Producers 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. 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. The following attachment is hereby made a part of this AGREEMENT Attachment A - Estimate of Rights to be Retired. WHEREFORE, the parties have executed this Agreement as of the date appearing opposite their signatures. DATED: s WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA Brian Brady, Interim General Manager DATED: /mZ By: Leon°s C. Malburg, MAY (Titles and capacities of Persons executing on behalf of Producer should be set forth.) By Bruce V. Malkenhorst, CITY ADMINISTRATOR / APPROVED AS TO FORM: By: v Eduardo Olivo, City Attorney . Estimate of Rights to be Retired 2000-2001 WRD In -Lieu Replenishment Program Agency c; tv of Vernon Contact Samuel Kevin Wilson Phone # (323) 583-8811 Fax # (323) 588-2761 Estimate of Rights to be retired: Central Basin West Basin Oct - Dec 2000 1164.04 Jan - March 2001 1119.. 87 April - June 2001 3 4 9.9 6 Total Estimate 2633.87 AF ,�z5 Date Attachment A AF