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HomeMy WebLinkAboutCC RESO 7525RESOLUTION NO. 7525 RESOLUTION APPROVING CONTRACT Be i'. resolved by the City Council of the City of National City as follows: That certain agreement entitled "Joint Powers Agreement of 1959 between The South Bay Irrigation District and The City of National City", a copy of which is hereto attached and made a part hereof by reference, is hereby approved and accepted, and the Mayor is authorized and directed to execute the same for and on behalf of City of National City. PASSED AND ADOPTED this % day of June, 1959. MAYOR ATTEST CITY CLERK JOINT POWERS AGREEMENT OF 1959 BETWEEN THE SOUTH BAY I1.RIGATION DISTRICT AND THE CITY OF NATIONAL CITY TABLE OF CONTENTS Section No. Title Recitals Section 1. Purpose of Agreement, Common Power Section Section Section Section Section 2. 3. 4. 5. 6. Section 7. Section 8. Section 9. Section 10. Section 11. Section 12. Section 13. Section 14. Section 15. Section 16. Section 17. Section 18. Execution to be Exercised, Termination. South Bay to Administer. The Joint Project. Capacity Rights - Water Rights. Determination of Values. Acquisition of Sweetwater Water System - Bond Elections. Administration, Maintenance and Operation. Repair and Replacement. New Construction. Records and Accounts. Insurance. Service Area - Future Annexations. Arbitration. Effect of Agreement, Nature of Obligations. Future Treatment Plant. Additional Vested Right Hereby Acquired. 24 Severability. 25 Effective Date. 25 26 Page 1 2 3 4 4 5 7 10 16 17 18 19 20 21 22 .24 JOINT POWERS AGREEMENT OF 1959 BETWEEN THE SOUTH BAY IRRIGATION DISTRICT AND THE CITY OF NATIONAL CITY WHEREAS, the following public agencies (herein- after sometimes referred to as "public agencies" or "agencies" and one of which is sometimes referred to as "public agency" or "agency"): the South Bay Irrigation District (hereinafter sometimes referred to as "SOUTH BAY"), an irrigation district organized and existing under and by virtue of the Irrigation District Law, Division 11 of the Water Code, and the City of National City (hereinafter some- times referred to as "NATIONAL CITY"), a municipal corpora- tion organized and existing in the State of California under and by virtue of the general laws of said State, and each -of said public agencies and the residents in each of them are being served by the water supply and distribution system owned by the California Water and Telephone Co., known as the Sweetwater District of the San Diego Bay Division of the California Water and Telephone Co. (herein- after sometimes referred to as "Sweetwater water system"); and WHEREAS, each of said public agencies has the power to acquire, construct, maintain, repair, manage, operate and control a water system; and WHEREAS said public agencies intend to proceed jointly to acquire said Sweetwater water system and all rights and other property owned by said company pertaining to said system, and to operate, maintain, manage, repair and control said system, and each intends to submit to its voters a proposition to authorize the issuance of water- works revenue bonds to payits share of the cost of acquir- ing said system and of constructing additions and improve- ments necessary thereto, and to sell and issue said bonds for said purpose; and WHEREAS, each of said public agencies is author- ized to contract with each other for the joint exercise of any common power under Article 1, Chapter 5, Division 7, Title 1 of the Government Code: NOW, THEREFORE, the following public agencies THE SOUTH BAY IRRIGATION DISTRICT and THE CITY OF NATIONAL CITY for and in consideration of the mutual promises and agree- ments hereinafter stated and the performance thereof, and for other valuable and adequate considerations, do promise and agree for and on behalf of themselves and their successors in interest as follows: Section 1. Purpose of Agreement, Common Power to be Exercised, Termination. This agreement, made under the provisions of Article 1, Chapter 5, Division 7, Title 1 of the Govern- ment Code, is for the purpose of providing for the 2. acquisition of the joint project hereinafter described in Section 3 hereof, the construction of additions and improve- ments necessary to said joint project and the operation, maintenance, management, repair and control of said joint project so that the residents of each public agency will be supplied with water. Each public agency has in common the power to acquire, construct, maintain, repair, manage, operate andcontrol said joint project. Said purpose will be accomplished and said common power exercised in the manner hereinafter set forth. This agreement may be amended and modified by said public agencies by mutual consent and shall continue until terminated pursuant to the provisions hereof, or untilterminated by said public agencies by mutual consent. Upon termination of this agreement, proportionate owner- ship shall continue as it was on the date of said termina- tion until changed by further agreement or pursuant to this. agreement. After completion of the purpose of this agreement, to wit: upon termination thereof, any surplus money on hand shall be returned in proportion to the contributions made. Section 2. South Bay to Administer. The South Bay Irrigation District shall, in the manner set forth in this agreement and subject to the restrictions in the laws of the State of California applicable to irrigation districts (including the Irri- gation District Law), administer the jointly owned facili- ties and execute this agreement and do all acts necessary for the exercise of said common power for said purpose. Section.3. The Joint Project. The joint project shall consist of the Sweetwater water system including, without limitation, all rights and property pertaining to said system. The various parts and items of said joint project are more particularly described in Exhibit 1, and the approximate location of said parts and items of the joint project are shown on Exhibit 2, both of which exhibits are incorporated herein and made a part hereof. Title to various parts and items of said joint project shall be held as shown in Exhibit 1, and each public agency shall be the sole owner or the owner as a tenant in common with the other public agency in each of said parts and items as shown in Exhibit 1. Jointly owned parts are herein- after sometimes referred to as "jointly owned facilities" (see Group A of Exhibit 1), and separately owned parts are hereinafter sometimes referred to as "separately owned facilities" (see Group B of Exhibit 1). Any part of the joint project not designated in this contract as a jointly owned or separately owned part may be so designated by amending this agreement. Section 4. Capacity Rights - Water Rights. Each public agency shall have capacity rights in the various parts of the jointly owned facilities which store, treat, transmit and distribute water in proportion to its ownership therein. 4. Water rights in the flow of the Sweetwater River and all water produced by either agency from local supplies including wells owned or developed by either agency and all other water rights pertaining to said Sweetwater water system shall be divided between the agencies in accordance with the percentage ownership of major water production facilities set forth in Group A, Part 1 of Exhibit 1 hereto attached. The production of local supplies and flow of Sweetwater River shall be measured in accordance with good engineering practice and SOUTH BAY shall keep good and accurate account thereof. Notwithstanding any other provi- sion of this agreement, to the extent that any new water production developed by either agency is used solely and exclusively in public parks owned and operated by the City of National City, the City -of Chula Vista or South Bay Irrigation District, such water so used shall not be subject to this agreement. Section 5. Determination of Values. The "Total Value" of the Sweetwater water system shall be the total amount paid to said Company for said system free and clear of all encumbrances. To determine the division of Total Value of the Sweetwater water system for the purposes of Section 6 hereof each item or group of items shown in Exhibit 1 (unless otherwise indicated therein) shall have an assigned "Percentage of Total Value" as shown in Exhibit 1, which percentages total 100%a Such percentages are based upon a dollar value for each item or group of items as estimated 5. and computed by the firm of Leeds, Hill and Jewett, engineers for the public agencies, and each percentage shown in Exhibit 1 is the percentage which such estimated dollar value for such item or group of items bears to the total of such estimated dollar values. The estimated dollar values leading to the per- centages shown in Exhibit 1 represent the best estimate which said engineers can make as of the date this agreement is entered into, but it is recognized that such estimates are based upon information obtained by said engineers as of an earlier date. Accordingly it is agreed that prior to the time payment is required to be made for acquisition of said water system as set forth in Section 6 hereof, and at such time as said engineers believe they have reason- ably accurate current information about said system, said engineers shall recompute such estimated dollar values and the percentages resulting therefrom, and the public agencies agree that they will adopt such revised percentages and set them forth in an appropriate document to be signed on behalf of each public agency and to be attached to this agreement. In recomputing. such estimated dollar values and the percentages resulting therefrom, said engineers shall make only such changes as are necessary to take into account the following: (a) Property constituting an item, or part of an item, shown on Exhibit 1 which was not acquired. 6. (b) Additions, improvements and re- pairs made to said Sweetwater water system by the California Water and Telephone Co. since September 30, 1958. (c) Property constituting an item, or part of an item, shown on Exhibit 1 which was retired from the Sweetwater water system since September 30, 1958. (d) Water in storage, non -utility property, severance (if any), intangibles, materials, supplies and similar items to the extent the same differ from the amounts thereof assumed by paid engineers in making said original computation. If for any reason said firm of Leeds, Hill and Jewett refuses or is unable to make such recomputation, said recomputation shall be made by arbitration as in this agreement provided. Section 6. Acquisition of Sweetwater Water System - Bond Elections. The public agencies shall proceed jointly to acquire said Sweetwater water system. If the Sweetwater water system is acquired free and clear of all encum- brances, the cash payment made by each agency shall be in an amount equal to the then composite percentage of ownership of Total Value as based on the percentages of Total Value revised as provided in the previous section. 7 If consumer advances for construction or other liabilities are assumed by the public agencies, the cash payment of each agency shall be reduced by the amount of liabilities it assumes. The cost of all proceedings in connection with acquisition, including attorneys' fees, expert witness fees, court costs and other costs shall be borne by each public agency in proportion to the then current composite percentage of ownership of Total Value. Prior to commencing acquisition proceedings, it is deemed appropriate to secure an expression from the voters of each agency. Said agencies agree, within a reasonable time, to take such steps as are legally necessary to call elections and submit to their voters, respectively, on the same date, propositions to authorize the issuance of revenue bonds to pay their respective shares of the cost of acquisition. It is understood that the exact cost of acquisi- tion is presently unknown. It is the intention of both agencies to acquire said Sweetwater water system at a reasonable price not to exceed the fair market value thereof. It is believed that total bonds in the amount of Twenty Million Dollars ($20,000,000) will be sufficient to pay the cost of acquisition and provide for sufficient operating capital and necessary and desired additions and improvements. NATIONAL CITY agrees to submit a revenue bond issue of at least Six Million Dollars ($6,000,000) to its voters. SOUTH BAY agrees to submit a revenue bond 8 issue of at least Fourteen Million Dollars ($14,000,000) to its voters. Each public agency may include in said bond issue such additional amounts as authorized by law and deemed appropriate by such agency. If the bonds of either public agency fail to receive the required approval, this agree- ment shall be terminated. If the bonds of both public agencies receive the required approval, the agencies shall as soon as practicable and in no event later than twenty (20) days thereafter, commence an action for the condem- nation of the Sweetwater water system. After the filing of said action and in the event that a purchase price can be negotiated agreeable to both public agencies, a contract of purchase shall be executed for the purchase of said system. As soon as the cost of acquisition is determined, either by a negotiated purchase price or pursuant to the entry of a judgment awarding damages in the condemnation proceedings, each public agency agrees to issue and sell enough bonds to pay its share of the cost of acquisition. The bonds shall be offered for sale on the same day and at the same hour, unless other- wise agreed by the public agencies. As soon as money is available therefor, the agencies shall pay said Company for the Sweetwater water system and shall take title as herein described. If the judgment awarding damages is in excess of the total revenue bonds available, then each public agency agrees to submit to their respective voters another proposition to authorize the issuance of addi- tional revenue bonds in order to enable each agency to 9.