Resolution No. 76411 RESOLUTION NO. 7641
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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,
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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
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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