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HomeMy WebLinkAboutCC RESO 94-75RESOLUTION NO. 94-75 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO SIGN A LETTER OF INTENT TO EXECUTE THE MEMORANDUM OF UNDERSTANDING, AND UPON SATISFACTION OF CERTAIN CONDITIONS, TO EXECUTE THE MEMORANDUM OF UNDERSTANDING SETTING FORTH AND RESOLVING FUNDAMENTAL POLICY ISSUES INVOLVED IN THE TRANSFER OF THE METROPOLITAN SEWERAGE SYSTEM TO THE SAN DIEGO AREA WASTEWATER MANAGEMENT DISTRICT WHEREAS, the statute creating the San Diego Area Wastewater Management District (the "SDAWMD") became effective January 1, 1993, (Chapter 803 of the 1992 statutes, California Water Code Appendix, Section 113-101, et seq.) (the "Act") and the SDAWMD has been duly formed, organized and is doing business; and WHEREAS, the SDAWMD is comprised of the City of National City, the City of Chula Vista, the City of Coronado, the City of El Cajon, the City of Imperial Beach, the City of La Mesa, the Lemon Grove Sanitation District, the Spring Valley Sanitation District (the "Participating Agencies"); the City of Del Mar, the Lakeside/Alpine Sanitation Districts, the Otay Water District, the Padre Dam Municipal Water District, the City of Poway, the County of San Diego on behalf of the Winter - gardens Sewer Maintenance District, (the "Later Participating Agencies"); and the City of San Diego; and WHEREAS, Section 401 of the Act authorizes the SDAWMD to acquire rights and assets, or assume obligations incurred, for the development and operation of sewage treatment and related facilities; and WHEREAS, the City of San Diego has legal title to operate a regional sewage collection, treatment and disposal system serving the Greater San Diego Metropolitan Area (the "Metro System") and has contracted with the Participating Agencies and Later Participating Agencies, to provide for sewage collection, treatment and disposal of their sewage pursuant to contract ("Sewage Disposal Agreements"); and WHEREAS, with the exception of the City of El Cajon, the boundaries of the SDAWMD include all or portions of the corporate areas of the City of San Diego and the Participating Agencies and Later Participating Agencies; and WHEREAS, the City of El Cajon intends to join the SDAWMD, and legislation to effect a conforming change to the Act to allow the City of El Cajon to become a member is being considered by the California State Legislature; and Continued on Page Two Resolution No. 94-75 Page 2 of 3 WHEREAS, the City of San Diego, the SDAWMD, and the Participating Agencies and Later Participating Agencies are, subject to the resolution of certain issues, prepared to agree to certain terms and conditions set forth in a Memorandum of Understanding ("MOU") for the acquisition of the Metro System and bonded indebtedness and transfer thereof from the City of San Diego to the SDAWMD (the "Transfer"), and for the extinguishment of the City of San Diego's obligations pursuant to the Sewage Disposal Agreements after the Transfer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to sign a letter of intent to execute the Memorandum of Understanding Setting Forth and Resolving Fundamental Policy Issues Involved in the Transfer of the Metropolitan Sewerage System to the San Diego Area Wastewater Management District, with final execution of the MOU to occur upon satisfaction of the following conditions: A. That there be resolution of the following issues, to the satisfaction of National City's representative on the Board of the San Diego Area Wastewater Management District: 1. That the weighted vote structure as proposed by the Oversight Committee be approved with the added provision that the City of San Diego has the right to exercise a veto under the weighted vote structure. 2. That the MOU terminate if the City of San Diego withdraws from the District prior to the Transfer; the Participating Agencies obligations thereafter, are based solely on their Sewage Disposal Agree- ments. 3. That the financial audit of any Metro System financing including Exhibits A and B to the MOU will be subject to the terms and conditions of existing Sewage Disposal Agreements for arbitration. 4. That any payment obligations of the SanDistrict for Mexican Sewage treatment and disposal be subordinate to current and long term obligations for capital improvements, operations and maintenance. Continued on Page Three Resolution 94-75 Page 3 of 3 B. That Subsections 3 and 4 of Section III.D. of the MOU be deleted, and the following language substituted in their place: Nothing stated herein creates any affirmative duty or obliga- tion on behalf of any signatory hereto to treat or transmit Mexican sewage flows crossing the international border into San Diego County. Any sewage crossing the international border which is transmitted, treated, or disposed in the Metro System shall be considered a SDAWMD flow payable by the Federal Government rather than allocable to the City of San Diego, or any Participating Agency or Later Participating Agency. BE IT FURTHER RESOLVED that the aforementioned letter of intent shall be delivered to the City of San Diego before 5:00 p.m. on June 20, 1994. BE IT FURTHER RESOLVED that the MOU shall be executed, after satisfaction of the above -described conditions, before 5:00 p.m. on June 30, 1994. PASSED and ADOPTED this 20th day of June, 1994. George H. aters Ma yor g ATTEST: Lori Anne Peoples City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney