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Resolution No. 10118RESOLUTION NO. 10,118 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN INDEMNITY AGREEMENT WITH KERN COUNTY IN CONNECTION WITH THE RED ROCK WIND PROJECT AND A CONSISTENCY ZONE CHANGE WHEREAS, the City of Vernon ("City") is a chartered municipal corporation of the State of California that owns and operates a system for the generation, purchase, transmission, distribution and sale of electric capacity and energy; and WHEREAS, the City owns or has rights to property in the Tehachapi Wind Resource Area of Tehachapi, California in Kern County with the potential for development of a large amount of renewable energy resources; and WHEREAS, the City has requested that Kern County ("County") approve a zone change and conditional use permit for the wind energy project known as the "Red Rock Wind Project" and undertake necessary actions under the California Environmental Quality Act; and WHEREAS, unrelated to the Red Rock Wind Project, the City has requested a consistency zone change for part of the City's property in Kern County to make the zoning consistent with the County's general plan, as required by state law; and WHEREAS, the City desires to indemnify the County from liability or loss connected with the Red Rock Wind Project approvals and the Consistency Zone Change; and WHEREAS, by memo dated December 9, 2009, the Director of Light & Power recommends the City enter into an agreement setting forth the terms and conditions under which the City will indemnify the County from liability or loss connected with the Red Rock Wind Project and the Consistency Zone Change (collectively, the "Projects"). 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 does hereby find and determine that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Agreement with the County, in substantially the form attached hereto as Exhibit A and incorporated by reference and authorizes the City Administrator, or his designee, to negotiate with the County modifications to the Agreement which in the opinion of the City Attorney will better protect the City. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for, and on behalf of, the City of Vernon as attached in Exhibit A, or alternatively, to execute a modified Agreement -if- the changes negotiated with the County are approved by the City Attorney, and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto SECTION 4: The City Council of the City of Vernon hereby authorizes the City Administrator, or his designee, to take whatever action is deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized. - 2 - SECTION 5: The City Council of the City of Vernon hereby directs the City Clerk, or her designee, to send the fully executed Agreement to the County. SECTION 6: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 14th day of December, 2009. AT EST: .CR1r� MANUELA GIRON, C'ty Clerk ��r�►6�- Name: Hilario Gonzales Title: Mayor / - 3 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 10,118, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, December 14, 2009, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of December, 2009, at Vernon, California. (SEAL) MANUELA GIRON,-City Clerk - 4 - EXHIBIT A AGREEMENT THIS AGREEMENT, made and entered into this day of , 200_, by and between COUNTY OF KERN, a political subdivision of the State of California (hereinafter referred to as "COUNTY"), and the CITY OF VERNON, a California charter city and municipal corporation (hereinafter referred to as "OWNER"); WITNESSETH: WHEREAS, in consideration of the COUNTY's approval of a zone change and conditional use permit to allow the wind energy project known as the Red Rock Wind Project and the related CEQA approvals granted by COUNTY thereunder, the OWNER desires to indemnify the COUNTY from liability or loss connected with the Red Rock Wind Project approvals herein; and WHEREAS, unrelated to the Red Rock Wind Project, but also benefiting the OWNER, the COUNTY has approved a consistency zone change cases ( ZCC# 8, Map # 109, ZCC # 9, Map 109, ZCC # 6, Map # 131, ZCC # 7, Map #131, ZCC # 3, Map 132-132, 1/2, ZCC # 4, Map # 132-132 1/2 ) ("Consistency Zone Change", and, together with the Red Rock Wind Project, the "Projects"), over part of the OWNER'S property to bring the zoning into consistency with the general plan, as is required by state law, and the OWNER desires to indemnify the COUNTY from liability or loss connected with the Consistency Zone Change herein; NOW, THEREFORE, IT IS MUTUALLY AGREED between COUNTY and OWNER as follows: 1. The OWNER shall defend, indemnify, and hold harmless the COUNTY and its agents, officers, and employees from any claim, action, or proceeding against the COUNTY or its agents, officers, or employees to attack, set aside, void, or annul the Projects or any prior or subsequent related development approvals or to attack the adequacy of Project conditions imposed by the COUNTY or any Revision Date (CITY OF VERNON) —1— (12/09/09) of its agencies, departments, commissions, agents, officers, or employees concerning the said Projects, or to impose personal liability against such agents, officers, or employees resulting from their involvement in the Projects, which claim, action, or proceeding is brought within the time period provided by law, including any claim for private attorney general fees claimed by or awarded to any party from COUNTY. To the extent that COUNTY uses any of its resources responding to such claim, action, or proceeding, OWNER will reimburse COUNTY upon demand. Such resources include, but are not limited to, staff time, court costs, County Counsel's time at their regular rate for external or non -County agencies, or any other direct or indirect cost associated with responding to the claim, action, or proceedings. The OWNER'S obligations under this agreement shall apply regardless of whether any other permits or entitlements are issued. These obligations shall be binding on successors and assigns of the real property benefitted by approval of the Projects, and OWNER shall so obligate all transferees and assigns. 2. The COUNTY will promptly notify OWNER of any such claim, action, or proceeding and, if the COUNTY should fail to cooperate fully in the defense, the OWNER shall not thereafter be responsible to defend, indemnify, and hold harmless the COUNTY or its agents, officers, and employees pursuant to this condition. 3. The COUNTY may, within its unlimited discretion, participate in the defense of any such claim, action, or proceeding if the COUNTY defends the claim, action, or proceeding in good faith. 4. The OWNER shall not be required to pay or perform any settlement of such claim, action, or proceeding unless the settlement is approved in writing by OWNER. 5. All notices to OWNER under this Agreement shall be deemed valid and effective five (5) calendar days following deposit in the United States mail, postage prepaid, by certified and/or registered mail, addressed to the City Administrator, City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058. All notices to COUNTY under this Agreement shall be deemed valid and effective when Revision Date (CITY OF VERNON) —2— (12/09/09) personally served upon the Planning Department Director or upon deposit in the United States mail, postage prepaid, by certified and/or registered mail, addressed to the Director, Kern County Planning Department, 2700 "M" Street, Suite 100, Bakersfield, California 93301. 6. This Agreement represents the complete understanding between the parties with respect to matters set forth herein. IN WITNESS WHEREOF, the parties hereto have duly caused this Agreement to be executed on the date hereinabove first written. OWNER COUNTY OF KERN City of Vernon Mayor / Mayor Pro-Tem ATTEST: Manuela Giron, City Cleric APPROVED AS TO FORM: Laurence S. Wiener, City Attorney Director, Planning Department APPROVED AS TO FORM: Office of County Counsel Deputy Revision Date (CITY OF VERNON) —3— (12/09/09) CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: January 19, 2010 TO: Donal O'Callaghan, Director of Light & Power FROM: Nelly Giron, City Clerk RE: Resolution No. 10,118 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the Execution of an Indemnity Agreement with Kern County in Connection with the Red Rock Wind Project and a Consistency Zone Change Transmitted herewith is a copy of the fully executed agreement and Resolution No. 10,118 referenced above, which was approved by City Council on December 14, 2009. Thank you. NG : dj c: Resolution No. 10,118 Agreement File No. 09-147 KERN COUNTY PLANNING DEPARTMENT TED JAMES,AICP, Director Resource Management Agency 2700 "M" Street, Suite 100, Bakersfield, CA 93301 Ted James Interim, RMA Director (661)862-8600 FAX: (661) 862-8601 MEMORANDUM TRANSMITTAL SENT BY: Lorelei H.Oviatt, A.I.C.P Special Projects Division Chief Phone: (661) 862-8866 Fax: (661) 862-8601 e-mail Loreleio@co.kern.ca.us ............................................... ■ .............. 0 0 E 0 0 E. 0 0 0 0 0 0 .. ■ 1 DATE: January 15, 2010 TO: City of Vernon Office of the City Clerk 4305 Santa Fe Avenue Vernon, California 90058 Attn: Nelly Giron RE: Red Rock Wind Project — Executed Original Indemnification Agreement COMMENT: As requested. Thank you. Lorelei AGREEMENT THIS AGREEMENT, made and entered into this l day of 00 by and between COUNTY OF KERN, a political subdivision of the State of California (hereinafter referred to as "COUNTY"), and the CITY OF VERNON, a California charter city and municipal corporation (hereinafter referred to as "OWNER"); WITNESSETH: WHEREAS,: in consideration of the COUNTY's approval of a zone change and conditional use permit to allow the wind energy project known as the Red Rock Wind Project and the related CEQA approvals granted by COUNTY thereunder, the OWNER desires to indemnify the COUNTY from liability or loss connected with the Red Rock Wind Project approvals herein; and WHEREAS, unrelated to the Red Rock Wind Project, but also benefiting the OWNER, the COUNTY has approved a consistency zone change cases ( ZCC# 8, Map #109, ZCC # 9, Map 109, ZCC # 6, Map #131, ZCC # 7, Map #131, ZCC # 3, Map 132-132, '/z, ZCC # 4, Map # 132-132 '/2 ) ("Consistency Zone Change", and, together with the Red Rock Wind Project, the "Projects"), over part of the OWNER'S property to bring the zoning into consistency with the general plan, as is required by state law, and the OWNER desires to indemnify the COUNTY from liability or loss connected with the Consistency Zone Change herein; NOW, THEREFORE, IT IS MUTUALLY AGREED between COUNTY and OWNER as follows: 1. The OWNER shall defend, indemnify, and hold harmless the COUNTY and its agents, officers, and employees from any claim, action, or proceeding against the COUNTY or its agents, officers, or employees to attack, set aside, void, or annul the Projects or any prior or subsequent related development approvals or to attack the adequacy of Project conditions imposed by the COUNTY or any Revision Date (CITY OF VERNON) —1— (12/09/09) of its agencies, departments, commissions, agents, officers, or employees concerning the said Projects, or to impose personal liability against such agents, officers, or employees resulting from their involvement in the Projects, which claim, action, or proceeding is brought within the time period provided by law, including any claim for private attorney general fees claimed by or awarded to any party from COUNTY. To the extent that COUNTY uses any of its resources responding to such claim, action, or proceeding, OWNER will reimburse COUNTY upon demand. Such resources include, but are not limited to, staff time, court costs, County Counsel's time at their regular rate for external or non -County agencies, or any other direct or indirect cost associated with responding to the claim, action, or proceedings. The OWNER'S obligations under this agreement shall apply regardless of whether any other permits or entitlements are issued. These obligations shall be binding on successors and assigns of the real property benefitted by approval of the Projects, and OWNER shall so obligate all transferees and assigns. 2. The COUNTY will promptly notify OWNER of any such claim, action, or proceeding and, if the COUNTY should fail to cooperate fully in the defense, the OWNER shall not thereafter be responsible to defend, indemnify, and hold harmless the COUNTY or its agents, officers, and employees pursuant to this condition. 3. The COUNTY may, within its unlimited discretion, participate in the defense of any such claim, action, or proceeding if the COUNTY defends the claim, action, or proceeding in good faith. 4. The OWNER shall not be required to pay or perform any settlement of such claim, action, or proceeding unless the settlement is approved in writing by OWNER. 5. All notices to OWNER under this Agreement shall be deemed valid and effective five (5) calendar days following deposit in the United States mail, postage prepaid, by certified and/or registered mail, addressed to the City Administrator, City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058. All notices to COUNTY under this Agreement shall be deemed valid and effective when Revision Date (CITY OF VERNON) —2— (12/09/09) personally served upon the Planning Department Director or upon deposit in the United States mail, postage prepaid, by certified and/or registered mail, addressed to the Director, Kern County Planning Department, 2700 "M" Street, Suite 100, Bakersfield, California 93301. 6. This Agreement represents the complete understanding between the parties with respect to matters set forth herein. IN WITNESS WHEREOF, the parties hereto have duly caused this Agreement to be executed on the date hereinabove first written. OWNER City of Vernon ATT ST: Manuela Giron, City Cl k APP YED S TO FORM . f Laurence S. Wiener, City Attorney COUNTY OF KERN Director, P nni g Department APPROVED AS TO FORM: Office of County Counsel Deputy Revision Date (CITY OF VERNON) —3— (12/09/09) .A — •- OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 December 15, 2009 Lorelei H. Oviatt, AICP Division Chief Kern County Planning Department 2700 "M" Street Bakersfield, CA 93301 Re: County of Kern - Red Rock Wind Project Dear Ms. Oviatt: For signature by the appropriate party, transmitted herewith are two partially executed agreements approved by City Council on December 14, 2009, through Resolution No. 10,118. Please ensure that a fully executed original agreement is returned to the attention of the undersigned. If you have any questions regarding this matter, please call Mr. Donal O'Callaghan, at (323) 583-8811 ext. 834. Very truly yours, NNe 11 y qGir n City Clerk NG : dj c: Donal O'Callaghan Purchasing Department Resolution No. 10,118 Agreement File No. 09-147 Excfusivefy Industrial RECEIVED DEC 0 9 2009 CITY CLERK'S OFFICE STAFF REPORT LIGHT & POWERS DATE: December 9, 2009 TO: Honorable Mayor and City Council FROM: Donal O'Callaghan, Director of Light & Power RE: Indemnity Agreement with Kern County — Red Rock Wind Project and Consistency Zone Change In order to accomplish the Red Rock Wind Project, the City has requested a number of approvals from Kern County, including a conditional use permit. The County is also processing a zone change for certain parcels of land within Kern County, including some of the City's parcels, in order to make those parcels consistent with the County's general plan. While the consistency re -zone is not necessary for the Red Rock Wind Project, having general plan consistency will facilitate the approval of the City's conditional use permit. Kern County has requested that the City execute an indemnity agreement with respect to any claims that result from the approval of the zone change and any County approvals related to the Red Rock Wind Project. Under the agreement, the City would defend and indemnify the County for any such claims. Recommendation: I recommend the City Council approve an indemnification agreement with Kern County on the next agenda council meeting which is Monday, December 14, 2009. DO: JV Attachment