HomeMy WebLinkAboutCC RESO 12,300RESOLUTION NO. 12,300
RESOLUTION OF THE CITY OF NATIONAL CITY APPROVING
AND AUTHORIZING THE EXECUTION OF AN "AGREEMENT
RE FINAL ORDER OF CONDEMNATION."
WHEREAS, the City of National City, in order to
acquire public control of water distribution facilities, is
a party in the case of South Bay Irrigation District vs.
California -American Water Company; and
WHEREAS, the courts have affirmed the trial court
judgment regarding the value of the water distribution
facility sought to be acquired; and
WHEREAS, the California -American Water Company has
agreed to convey the properties of its Sweetwater District to
the City of National City and South Bay Irrigation District for
a fair price; and
WHEREAS, said agreement will alleviate the necessity
for a continuation of litigation and otherwise enable the public
to acquire control of its water distribution facilities in an
expeditious manner;
NOW, THEREFORE, BE IT RESOLVED that:
The Mayor is authorized to execute that certain
agreement entitled "Agreement Re Final Order of Condemnation"
a copy of which is attached hereto as Exhibit "A" and made a
part hereof.
PASSED AND ADOPTED this 22nd day of March, 1977.
ATTEST:
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"EXHIBIT A"
SUPERIOR COURT OF THE STATE OF CALIFORNIA
q IN AND FOR THE COUNTY OF SAN DIEGO
10
1:1 SOUTH BAY IRRIGATION DISTRICT, )
)
Plaintiff, ) NO. 306441
12 )
AGREEMENT RE FINAL
13 v. ) ORDER OF CONDEMNATION
14 CALIFORNIA-AMERICAN WATER COMPANY, )
1.5 Defendant. )
16 CITY OF NATIONAL CITY, )
17 Intervenor. )
)
:1.8
]'_9 The parties hereto agree as follows:
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1. The South Bay Irrigation District (District) and the
21 City of National City (City) shall cause bond elections to be
22 held by them and/or by their joint powers agency, the Sweetwater
23 Authority (Authority), on or before May 31, 1977, authorizing
24 the issuance and sale of their bonds in an amount at least equal.
25 to, and in order to pay, the sum due California -American Water
26 Company (Company) for its Sweetwater District;
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Z. The sum due the Company is $19,000,000, plus costs
28 due under Code of Civil Procedure section 1255 and California
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Rules of Court, Rule 26, and accounts receivable and unbilled
revenues from customers as noted in paragraph 4; .
3. The sum due the Company shall be paid on or before
September 1, 1977, except as to the customer accounts receivable
and unbilled revenues which shall be payable as noted in para-
graph 4;
4. The District, the City and/or the Authority shall
remit to the Company the amount of the Sweetwater District's
customer accounts receivable and unbilled revenues existing on
the date of the taking of possession, or the entry of the final
order of condemnation, whichever date comes first, less $60,000.
Remittance is due in three equal installments on the 30th, 60th
and 90th days from the date of the taking of possession, or the
entry of the order, whichever date comes first. The amount of
customer unbilled revenues shall be deteiiuined by an application
of the Company's presently employed computer program;
5. If the District, the City and the Authority fail
on or before September 1, 1977 to pay the sum due the Company as
set forth in paragraphs 2 and 3 above, the sum due the Company
shall increase by $1,000,000. The District, the City and/or the
Authority may then cause a bond election or elections to be held
on November 8, 1977, authorizing the issuance and sale of their
bonds in an amount at least equal to, and in order to pay, the
sum due the Company, plus the additional $1,000,000, which payment
shall be made on or before December 27, 1977, except as to the
customer accounts receivable and unbilled revenues which are to be
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paid as noted in paragraph 4;
6. Failure on the part of the City, the District and/or
the Authority to pay into Court on or before September 1, 1977,
the sum due as set forth in paragraph 2, followed by their failure
to pay or cause to be paid the said sum due plus the additional
$1,000,000 on or before December 27, 1977, as set forth in para-
graph 5, shall constitute an abandonment of these proceedings by
the City and the District under Code of Civil Procedure section
1255(a).
7. From the date of the taking of possession, or the
entry of the final order of condemnation, whichever date comes
first, the District, the City and/or the Authority shall assume
all of the Company's obligations, contractual or otherwise, to
provide water utility service to the inhabitants of the Sweetwater
District's service area, and shall also assume all liability for
the Sweetwater District's:
a. leases and month to month tenancies of land,
improvements and equipment;
b. refunds due under contracts for advances for
construction;
c. unfinished construction, operation and main-
tenance contracts.
No other liabilities or contracts of the Company shall
be assumed by, or be the responsibility of, the District, City
and/or Sweetwater Authority. As to claims arising from the
obligations, liabilities, or contracts assumed herein by any party
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hereto, that party shall indemnify, hold harmless, and defend,
all other parties therefrom;
8. The District, the
City and/or the Authority will
retain for ten years all past records of the Sweetwater District's
operations for copying by the Company for corporate, Coronado
District, regulatory and tax purposes.'
9. Until the date of the taking of possession, or the
entry of the final order of condemnation, whichever date comes
first, the Company will, as to its Sweetwater District:
a. continue to protect, operate and maintain all
properties in accordance with its past policies and practice;
b. make all necessary additions, renewals and
replacements of property within the limits of its current capital
investment budget;
c.
property;
not sell or otherwise dispose of any of its
d. release no water from Loveland Reservoir, nor
reduce the water stored in Sweetwater Reservoir below 2,000
acre-feet, except in case of emergency or inadequate supply from
the San Diego Aqueduct;
e.
enter into no contracts, other than with
customers, that cannot be terminated on thirty days notice,
or cannot be paid for within the limits of the Company's current
operating and capital investment budgets;
10. The District, the City and/or the Authority may
confer with the Company's Sweetwater District employees during
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working hours in two groups, supervisory and nonsupervisory,
with a union official being present during the latter meeting,
and a designated representative of the Company being present
during both meetings. The Company reserves the right to offer
its employees work elsewhere.
11. To be effective this agreement must be executed
by all parties, and approved and entered by the Superior Court
in its minutes
as its order for
April 12, 1977. If it becomes
compliance by all parties,
effective,
then upon payment
provided in paragraphs 2 and 3, and
paragraph 5, the City, the District and/or the
Authority may take possession
Court
of the
applicable,
SUIT!
due as
by
into
if
condemnation, the
27 Company shall withdraw its petition for writ of certiorari which
28 it:, has filed with the United States Supreme Court. In the
of the Company's Sweetwater District
15 and the City and the District may have entered herein the final
16 order of condemnation provided for in Code of Civil Procedure
17 section 1253;
18 12. Upon the takingof
possession, or the entry of the
19 final order of condemnation, whichever date comes first, the
20 Company shall remit to the District, the City and/or the
21 Authority all unexpended balances of contributions in aid of
22 construction and advances for construction relating to the
23 contracts referred to in paragraph 7 c, above, and shall assign all
24 accounts receivable and unbilled revenues from customers referred
25 to in paragraphs 2, 3 and 4 above;
13. Upon entry of the final
order of
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meantime, the Company shall cooperate in suspending consideration
of the petition and extending deadlines for filing briefs;
14. Upon deposit in Court of the sum due the Company,
the "Agency" Agreements between the Company and the District
and the Company and City shall be terminated, and the standby
charge payable by the Company for the fiscal year in which such
termination occurs shall be that proportion of the aggregate stand
by charge for the entire fiscal year which the period from the
preceding July 1st to the date of termination bears to the entire
fiscal year. If the Metropolitan Water District of Southern
California and the San Diego County Water Authority taxes for the
tax year 1977-1978 are not then known, the taxes for the tax year
1976-1977 shall be used for pro -ration;
15. If either of the elections by the District or the
City planned for May 31, 1977 receive a majority vote, the
Company will fully cooperate in making available information to
assist in preparing the final order of condemnation so that the
properties sought to be condemned can be fairly and accurately
described;
16. The provisions of this agreement constitute the
full understanding between the parties hereto as to the matters
specifically discussed herein. There is no waiver of any right
by any of the parties not expressly waived herein.
/ / /
/ / /
/ / /
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SOUTH BAY IRRIGATION DISTRICT
By
David C. Burns, President
CITY OF NATIONAL CITY
By
Kile Morgan ,lMayor
CALIFORNIA-AMERICAN WATER COMPANY
By
APPROVED:
PAUL D. ENGSTRAND
JOHN H. WHITNEY
JENNINGS, ENGSTRAND & HENRIKSON
0. L. Banz, President
By
Paul D. Engstrand, Attorneys for
South Bay Irrigation District
DONALD F. McLEAN, JR., City Attorney
CITY OF NATIONAL CITY
By'
Donald F. McLean, Attorney for
Intervenor, City of National City
GRAY, CARY, AMES & FRYE
By
Eugene L. Freeland, Attorneys for
Defendant, California -American Water
Company
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STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
ss.
On , 1977, before me, the undersigned,
a Notary Public in and for said State, personally appeared DAVID
C. BURNS, known to me to be the President of SOUTH BAY IRRIGATION
DISTRICT, and known to me to be the person who executed the
within instrument on behalf of said public corporation, agency or
political subdivision, and acknowledged to me that such SOUTH
BAY IRRIGATION DISTRICT executed the same.
WITNESS my hand and official seal.
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
ss.
On , 1977
a Notary Public in and for said State
MORGAN, known to me to be the Mayor o
and known to me to be the person who
on behalf of said public corporation,
division, and acknowledged to me that
executed the same.
WITNESS my hand and official seal.
, before me, the undersigned,
, personally appeared KILE
f the CITY OF NATIONAL CITY,
executed the within instrumen
agency or political sub -
such CITY OF NATIONAL CITY
STATE OF CALIFORNIA )
ss.
COUNTY OF LOS ANGELES )
On , 1977, before me, the undersigned,
a Notary Public in and for said State, personally appeared 0. L.
BANZ, known to me to be the President of the corporation that
executed the within instrument, known to me to be the person who
executed the within instrument on behalf of the corporation there-
in named, and acknowledged to me that such CALIFORNIA-AMERICAN
WATER COMPANY executed the within instrument pursuant to its
by-laws or a resolution of its board of directors.
WITNESS my hand and official seal.
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