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SWEETWATER AUTHORITY
JOINT POWERS AGREEMENT & HISTORY OF AMENDMENTS
EFFECTIVE APRIL I, 2002
SWEETWATER AUTHORITY
JOINT POWERS AGREEMENT HISTORY OF AMENDMENTS
EFFECTIVE FEBRUARY 2002
Joint Powers Agreement of 1972 ....................... . 1
(As Adopted and Readopted in 1977)
First Amendment .........:.... .
(Resolution No. 408 Amending Section 2(D)(5)
Second Amendment .........................
(Resolution No. 484 Amending Section 11 & Adding Section 16
Resolution No. 2001-190 Amending Section 13..................................... 4
Joint Powers Agreement of 1972................................................ 5
Incorporating First and Second Amendment
JOINT POWERS AGREEMENT OF 1972,
AS AMENDED AND READOPTED IN 1977,
BETWEEN
THE SOUTH BAY IRRIGATION DISTRICT
AND
THE CITY OF NATIONAL CITY
CREATING
THE SWEETWATER AUTHORITY
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TABLE OF CONTENTS
PAGE
Recitals.............................................................1
Section 1.
Purposes of Agreement and Common Powers to be Exercised ....
1
Section 2.
Sweetwater Authority ..................................
2
Section 3.
Powers..............................................6
Section 4.
Fiscal Year ...........................................
7
Section 5.
Official Bond .........................................
7
Section 6.
Payments and Advances ................................
8
Section 7.
Issuance of Bonds .....:...............................
8
Section 8.
Litigation Expenses ....................................
9
Section 9.
Contributions ........................................
9
Section 10.
San Diego County Water Authority- Standby Charge .........
10
Section 11.
Term, Amendments, Termination ........................
11
Section 12.
No Franchise Charges ................................
13
Section 13.
Wells in National City ................................
13
Section 14.
Severability.........................................
13
Section 15.
Joint Powers Agreement of 1969 .........................
13
Execution.....................................................14
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Joint Powers Agreement of 1972, as Amended and Readopted
in 1977, Between the South Bay Irrigation District and the City
of National City Creating the Sweetwater Authority.
THIS AGREEMENT, dated July 22, 1977, is made and entered into by and between the
SOUTH BAY IRRIGATION DISTRICT (hereinafter sometimes referred to as "SOUTH BAY"),
an irrigation district organized and existing under the Irrigation District Law ofthe State of California
(Division 11 of the Water Code), and the CITY OF NATIONAL CITY (hereinafter sometimes
referred to as "NATIONAL CITY") , a municipal corporation organized and existing under the laws
of the State of California (Title 4 of the Government Code).
RECITALS
SOUTH BAY and NATIONAL CITY and the residents in each of them are served by the
14 water supply and distribution system owned by the California -American Water Company, which
system is known as the Sweetwater District of the San Diego Bay Division (hereinafter sometimes
referred to as "Sweetwater System"). SOUTH BAY and NATIONAL CITY are in the process of
acquiring the Sweetwater System by means of an eminent domain proceeding ( San Diego Superior
Court No.306441). SOUTH BAY and NATIONAL CITY find that it would be in the best interests
of each public agency and the residents of each of them to create the "SWEETWATER
j� AUTHORITY" to acquire, own, lease, operate, manage, maintain and improve the Sweetwater
System so that their residents will be supplied with water at the lowest possible cost consistent with
sound economy, prudent management and the security and payment of the principal and interest of
the revenue bonds to be issued by SOUTH BAY.
NOW, THEREFORE, SOUTH BAY AND NATIONAL CITY, FOR AND IN CONSIDERATION OF THEIR
MUTUAL PROMISES AND AGREEMENTS HEREIN CONTAINED, DO AGREE AS FOLLOWS:
SECTION 1. Purposes of Agreement and Common Powers to be Exercised
This Agreement is made pursuant to the provisions of Article 1, Chapter 5, Division 7,
Title 1 ofthe Government Code ofthe State of California (commencing with Section 6500 hereinafter
sometimes called "Act" relating to the joint exercise of powers common to public agencies, in this
case being SOUTH BAY and NATIONAL CITY, each in which is Authorized to contract with the
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other pursuant thereto. The purposes of this Agreement are to create the SWEETWATER
AUTHORITY, to provide for the acquisition, leasing, ownership, financing, operation, management,
maintenance. repair and improvement of the Sweetwater System, and the construction of additions
and improvements thereto, for the supplying of water for domestic irrigation, sanitation, industrial,
fire protection, recreation or any other public or private uses. Each public agency has in common the
powers to acquire, own, finance, lease, operate, manage, maintain, repair, improve and construct such
facilities for such purposes. The foregoing purposes Will be accomplished and common powers
exercised in the manner hereinafter set forth.
SECTION 2. Sweetwater Authority
(A) Creation of Authority
Pursuant to Sections 6506 and 6507 of the Act, there is hereby created a public entity to
be known as the "SWEETWATER AUTHORITY." The SWEETWATER AUTHORITY shall be
a public entity separate and apart from SOUTH BAY and NATIONAL CITY and a "local
government" within the meaning of Section 3(c) of Article XIII of the California Constitution. The
boundaries of the SWEETWATER AUTHORITY shall be coterminous with the boundaries of
SOUTH BAY and NATIONAL CITY as they exist from time to time. The debts, liabilities and
obligations ofthe SWEETWATER AUTHORITY shall not constitute debts, liabilities or obligations
of SOUTH BAY or NATIONAL CITY.
(B) Governing Board
The SWEETWATER AUTHORITY shall be administered by a Governing Board of seven
(7) members, each serving in his individual capacity as a member of the Governing Board. Such
Governing Board shall be called the "Governing Board ofthe SWEETWATER AUTHORITY." All
voting power shall reside in the Governing Board.
Five (5) members ofthe Governing Board ofthe SWEETWATER AUTHORITY shall be the
five persons who are from time to time the incumbent members ofthe Board of Directors of SOUTH
BAY.
Two ( 2) members of the Governing Board of the SWEETWATER AUTHORITY shall
be appointed by the Mayor, subject to confirmation by the City Council, of NATIONAL CITY,
They shall be electors of NATIONAL CITY at the time of assuming such offices and at all times
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during their terms of office. They shall serve four ( 4) year terms. Any vacancy that occurs among
the NATIONAL CITY members ofthe Governing Board shall be tilled by appointment by the Mayor,
subject to confirmation by the City Council, of NATIONAL CITY.
( C ) Meetings of the Governing Board
(1) Regular Meetings
The Governing Board of the SWEETWATER AUTHORITY shall provide for its regular
meetings. The date, hour and place of holding the regular meetings shall be fixed by Resolution of
the Governing Board. A copy of such Resolution shall be filed with SOUTH BAY and NATIONAL
CITY.
(2) Ralph M. Brown Act
All meetings of the Governing Board of the SWEETWATER AUTHORITY, including,
without limitation, regular, adjourned regular and special meetings, shall be called, noticed, held and
con- conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with
Section 54950 of the Government Code), as amended.
(3) Minutes
The Secretary of the SWEETWATER AUTHORITY shall cause to be kept minutes of the
meetings of the Governing Board and shall, after each meeting, cause a copy of the minutes to be
forwarded to each member of the Governing Board and to SOUTH BAY and NATIONAL CITY.
(4) Quorum
A majority of the Governing Board of the SWEETWATER AUTHORITY shall constitute
a quorum for the transaction of business, except that less than a quorum may adjourn from time to
time; provided that the affirmative vote of at least four members of the Governing Board shall be
required for any action of the Governing Board, other than adjournment.
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(D) Officers and Duties
(1) Chairman
The Governing Board of the SWEETWATER AUTHORITY shall elect one of its
members as Chairman. The Chairman's term of office shall be two years and until his successor takes
office, The Chairman of the Governing Board shall preside at its meetings and shall perform such
other duties as are specified by the Governing Board.
(2) Vice -Chairman
The Governing Board of the SWEETWATER AUTHORITY shall elect one of its
members Vice -Chairman, The Vice -Chairman's term of office shall be two years and until his
successor takes office. The Vice -Chairman shall perform all the duties of the Chairman in the absence
of the Chairman or in the event of the Chairman's inability to perform such duties.
(3) Secretary
The Secretary of the SWEETWATER AUTHORITY shall be appointed by the Governing
Board ofthe SWEETWATER AUTHORITY and shall serve at the pleasure ofthe Governing Board.
The Secretary may but need not be a member of the Governing Board. The Secretary shall be
responsible for the minutes and other records of the proceedings of the Governing Board and shall
perform such other duties as are specified by the Governing Board.
(4) Treasurer
The Treasurer of the SWEETWATER AUTHORITY shall be the Treasurer of SOUTH
BAY serving ex-officio as Treasurer ofthe SWEETWATER AUTHORITY. The Treasurer shall have
custody ofall the money ofthe SWEETWATER AUTHORITY, from whatever source, and he shall:
(a) Receive and receipt for all money of the SWEETWATER AUTHORITY and place
it in the SOUTH BAY treasury to the credit ofthe SWEETWATER AUTHORITY;
(b) Be responsible upon his official bond for the safe- keeping and disbursement
of all SWEETWATER AUTHORITY money so held by him;
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(c) Pay any other sums due from the SWEETWATER AUTHORITY from
AUTHORITY money, or any portion thereof, only upon warrants of the
Controller of the SWEET WATER AUTHORITY;
(d) Verify and report in writing on the first day of July, October, January
and April of each year to the SWEETWATER AUTHORITY and to
SOUTH BAY and NATIONAL CITY the amount of money he holds
for the AUTHORITY, the amount of receipts since his last report,
and the amount paid out since his last report; and
(e) Perform such other duties as are specified by the Governing Board.
(5) Controller
The Controller of the SWEETWATER AUTHORITY shall be the duly appointed and
acting Controller of SOUTH BAY serving ex-officio as Controller of the SWEETWATER
AUTHORITY. The Controller shall establish and maintain such accounts, books and records as may
be required by good accounting practice or by any provision of lease agreements of the
SWEETWATER AUTHORITY and he shall perform such other duties as are specified by the
Governing Board. There shall be strict accountability of all funds and report of all receipts and
disbursements. The accounts, books and records of the AUTHORITY shall be open to inspection at
all reasonable times by representatives of SOUTH BAY or NATIONAL CITY. The Controller shall
draw warrants to pay demands against the AUTHORITY when the demands have been approved by
the Governing Board. The Controller shall, with the approval of the Governing Board, contract with
a certified public accountant to make an annual audit of the accounts and records of the
AUTHORITY. The minimum requirements of the audit shall be those prescribed by the State
Controller for Special Districts under Section 26909 of the Government Code and shall con- form
to generally accepted auditing standards. A report thereof shall be filed as public records with
SOUTH BAY and NATIONAL CITY and a 1 so with the County Auditor of San Diego County. Such
reports shall be filed within twelve months of the end of the fiscal year under examination.
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(6) Attorney
The Attorney for the SWEETWATER AUTHORITY shall be the duly appointed and acting
Attorney for SOUTH BAY (or his duly authorized deputy) , serving ex-officio as Attorney for the
SWEETWATER AUTHORITY. The Attorney for the AUTHORITY or his designated deputy shall
attend all meetings of the Governing Board, but his absence shall not affect the validity of any
meeting. The Attorney shall perform such other duties as are specified by the Governing Board.
(E) Rules
The Governing Board may adopt, from time to time, such rules and regulations for the
conduct of its meetings and affairs as may be required.
SECTION 3. Powers
The SWEETWATER AUTHORITY shall have the powers common to SOUTH BAY and
NATIONAL CITY set forth in Section 1, as limited by this Agreement. The SWEETWATER
AUTHORITY, by and through its Governing Board, is hereby authorized, in its own name, to do all
acts necessary, convenient or appropriate for the exercise of said common powers for the purposes
set forth in Section 1 and to do any or all of the following:
(a) To make and enter into contracts, including agreements necessary to comply with
procedural requirements in connection with any federal or state grants;
(b) To employ agents, officers and employees;
(c) To lease, acquire, construct, manage, maintain or operate any buildings, works or
improvements;
(d) To acquire, hold, lease or dispose of property;
(e) To incur debts, liabilities or obligations which do not constitute a debt, liability or
obligation of SOUTH BA Y or NATIONAL CITY;
(f) To sue and be sued in its own name;
(g) To receive gifts, contributions and donations of property, funds, services and other
forms of assistance from persons, firms, corporations and any governmental entity,
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provided that such gifts, contributions or donations are consented to by the
AUTHORITY in each instance;
(h) To lease, as lessee, from SOUTH BAY, as lessor, the Sweetwater System including
both real and personal property thereof, and operating capital and reserves therefor;
(i) To fix the compensation paid to the Governing Board, Secretary, Treasurer,
Controller and Attorney, provided, however, the compensation of the Board
members shall not exceed that authorized for Irrigation District Board members
( see Water Code Section 21166 ) from time to time;
(j) To prescribe the duties, compensation and other terms and conditions of
employment of other agents, officers and employees;
(k) To adopt reasonable rules and regulations for the conduct of the Sweetwater System
and to prescribe, revise and collect charges for services facilities and water furnished;
(1) To acquire, own. lease, operate. manage, maintain. repair and improve the
Sweetwater System, and to construct additions and improvements thereto.
Such powers shall be exercised in the manner provided in the Act. and. except as expressly
set forth herein. subject only to such restrictions upon the manner of exercising such powers as are
imposed upon SOUTH BAY in the exercise of similar powers.
SECTION 4. Fiscal Year
The fiscal year of the SWEETWATER AUTHORITY shall be July 1 to June 30.
SECTION 5. Official Bond
The Manager of the SWEETWATER AUTHORITY is hereby designated as the person
who shall have charge of, handle and have access to the property of the SWEETWATER
AUTHORITY. The Manager shall file an official bond in an amount fixed by SOUTH BAY and
NATIONAL CITY. The SWEETWATER AUTHORITY shall procure and maintain adequate
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fidelity insurance or bonds on all directors, officers, agents and employees or other persons handling
or responsible for any revenues or funds ofthe SWEETWATER AUTHORITY and the Sweetwater
System. All bond and insurance premiums shall be paid by the SWEETWATER AUTHORITY.
SECTION 6. Payments and Advances
SOUTH BAY and NATIONAL CITY may, in appropriate circum- stances or when
required by this Agreement: (a) make contributions from their treasuries for the purposes set forth
in this Agreement; (b) make payments of public funds to defray the cost of such purposes; (c) make
advances of public funds for such purposes, such advances to be repaid as provided in this
Agreement; or (d) contribute the use of personnel, equipment or property of one or more parties to
this Agreement in lieu of other contributions or advances.
SECTION 7. Issuance of Bonds
(A) SOUTH BAY shall sell $22,500,000 principal amount of revenue bonds pursuant to
the Revenue Bond law of 1941 to pay and provide for: the sum due the California -American Water
Company under the Agreement Re Final Order of Condemnation in the eminent domain proceeding,
which agreement was approved by Order of the Court on April 16, 1977; the cost of the sale and
issuance ofthe revenue bonds; bond serve funds and other reserve funds; working capital; and other
costs and expenses incidental to or connected with the acquisition and financing of the Sweetwater
System as authorized by the Revenue Bond Law of 1941, and as authorized at the May 31, 1977,
election. Upon the sale and issuance of the revenue bonds by SOUTH BAY, the unissued
$22,500,000 revenue bonds ofNATIONAL CITY authorized at the May 31, 1977, election shall be
cancelled.
(B) Concurrently with the issuance of SOUTH BA Y's revenue bonds: NATIONAL
CITY shall take such steps as are necessary to cause title to the Sweetwater System to vest. in
SOUTH BA Y pursuant to the Final Order of Condemnation in the eminent domain proceeding;
SOUTH BA Y shall lease the Sweetwater System to the SWEETWATER AUTHORITY; the
SWEETWATERAUTHORITY shall assume the obligations to California -American Water Company
set forth in para- graphs 4, 7 and 8 ofthe Agreement Re Final Order of Condemnation; SOUTH BA
Y and NATIONAL CITY shall assign to SWEETWATER AUTHORITY all of their interest in the
unexpended balances of contributions in aid of construction, advances for construction, accounts
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receivable and unbilled revenues from customers to be remitted by California - American Water
Company under paragraph 12 of the Agreement Re Final Order of Condemnation.
SECTION 8. Litigation Expenses
(A) SOUTH BAY and NATIONAL CITY shall each pay its own attorneys' fees in
connection with the eminent domain proceeding (San Diego Superior Court No.306441) .
(B) All other expenses of proceeding No.306441, including (without limitation) expert
witness fees and court costs, in the total amount of $453,025.68, have been advanced by SOUTH
BAY. SOUTH BAY's share of such expenses is $330,708.95 and NATIONAL CITY's share is
$122,316.93. NATIONAL CITY's share of such expenses advanced by SOUTH BAY shall bear
interest at the rate of 5.5% per annum from and after November 1, 1971. NATIONAL CITY shall
reimburse SOUTH BAY for NATIONAL CITY's $ 122.316.93 share of the expenses plus the
interest thereon. The total amount due from NATIONAL CITY as of November 1, 1977, is
$162.681.51. Such reimbursement shall be made from lawfully available funds in four (4 ) payments
(interest included), as follows: $44.150 on November 1, 1977, 1978 and 1979; $43,467 on November
1, 1980.
SECTION 9. Contributions
SOUTH BAY and NATIONAL CITY shall contribute to SWEETWATER AUTHORITY,
at no expense to SWEETWATER AUTHORITY and with no obligation of repayment on the part
of SWEETWATER AUTHORITY, the following:
(1) All attorney's fees incurred by them in connection with the eminent domain
proceeding;
(2) All other expenses of the eminent domain proceeding, including (without limitation)
expert witness fees and court costs;
(3) All costs of conducting the revenue bond elections held May 31, 1977
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it SECTION 10. San Diego County Water Authority -Standby Charge
(A) SOUTH BAY and NATIONAL CITY hereby empower the SWEETWATER
AUTHORITY (upon its acquisition by lease of the Sweetwater System and during the term of the
lease or of this Agreement, whichever is longer) to order, receive, sell and distribute through the
Sweetwater System ( as it is constituted from time to time) for use within SOUTH BAY and
NATIONAL CITY, respectively, all water that SOUTH BAY and NATIONAL CITY, respectively,
shall become entitled to purchase from the San Diego County Water Authority to the extent that the
SWEETWATER AUTHORITY shall require the same. The SWEETWATER AUTHORITY does
not by this Agreement acquire any interest in the San Diego County Water Authority water rights of
SOUTH BAY or NATIONAL CITY other than the right to order, receive, sell and distribute said
water in accordance with, and during the terms of, this Agreement and the Sweetwater System lease.
The SWEET WATER AUTHORITY shall order such water directly from the San Diego County
Water Authority and shall pay the Water Authority for such water. The SWEETWATER
AUTHORITY may order from the San Diego County Water Authority amounts of water up to the
aggregate amounts available to SOUTH BAY and NATIONAL CITY. If the SOUTH BA Y or
NATIONAL CITY component of an order exceeds the amount of water available to either agency
from the San Diego County Water Authority, then to the extent the other agency shall have
unordered County Water Authority water entitlement available it shall be used and a like amount of
local water available to the entitlement -short agency shall be released to the other agency in exchange
therefor, at its request. If no request is made within one year of a use, the right to the release of
exchange water therefor shall terminate as to that individual use.
(B) Upon three (3) months' written notice to the SWEETWATER AUTHORITY, SOUTH
BAY and/or NATIONAL CITY may, at their/its option, elect to charge the SWEETWATER
AUTHORITY standby charges to the extent hereinafter provided for the right to receive water from
the San Diego County Water Authority. Upon the exercise of the option to make a standby charge
by either SOUTH BAY or NATIONAL CITY (or both) , then an equivalent standby charge shall
be made by both SOUTH BAY and NATIONAL CITY. (For example, if SOUTH BAY charged a
standby charge equal to 50% of the Metropolitan Water District of Southern California taxes levied
in SOUTH BAY, then it would be mandatory for NATIONAL CITY to charge a standby charge
equal to 50% of the MWD taxes levied in National City.) The option to charge a standby charge shall
not be exercised unless at the time ofthe exercise of the option there is sufficient money in the surplus
account under the lease of the Sweetwater System to pay in full one year's standby charges for both
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SOUTH BAY and NATIONAL CITY. The surplus account under the lease contains money
remaining on hand after paying: ( I) maintenance and operation costs of the Sweetwater System; (2)
rental as provided in the lease of the Sweetwater System; and (3) repair and replacement reserve
account deposits as provided in the lease of the Sweetwater System, The SWEETWATER
AUTHORITY shall only be obligated to pay, and shall only pay, such charges from moneys, if any,
in said surplus account until the SOUTH BAY revenue bonds and the interest thereon shall have been
paid in full or adequate provision for such payment shall have been made, Until the SOUTH BAY
revenue bonds, and the interest thereon, shall have been paid in full or adequate provision for such
payment shall have been made, the amounts of such standby charges shall not exceed fifty percent
(50%) of any Metropolitan Water District of Southern California and San Diego County Water
Authority taxes for each fiscal year (July 1 to June 30) applicable to taxable property situated within
the public agency (SOUTH BAY or NATIONAL CITY) making such standby charge. If a standby
charge is made and to the extent moneys are available in said surplus account, sixty percent (60%)
thereof shall be payable by the SWEETWATER AUTHORITY by December 1 and forty percent
(401/6) by May 1 of the fiscal year for which the charge is made or at such other times and in such
installments as are necessary to correspond to the requirements of the Metropolitan Water District
and the County Water Authority as to cash payments in lieu of taxes, as such requirements may be
changed from time to time. Nothing herein shall prevent SOUTH BAY or NATIONAL CITY from
using the proceeds from its respective standby charge for any lawful purpose.
(C) SOUTH BAY and NATIONAL CITY agree to: remain members of the San Diego
County Water Authority at all times during the term of this Agreement; take any action necessary to
protect their water rights and other rights as members of the Water Authority; perform such acts and
execute such documents as may be necessary to accomplish the purposes of this Section.
SECTION 11. Term, Amendments, Termination
(A) This Agreement shall be effective when signed by SOUTH BAY and NATIONAL
CITY, may be amended by mutual consent, and shall continue until terminated by mutual consent or
by either SOUTH BAY or NATIONAL CITY upon one year's written notice; provided, however,
this Agreement cannot be terminated until all of SOUTH BAY's revenue bonds and the interest
thereon, shall have been paid in full or adequate provision for such payment shall have been made.
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(B) If this Agreement is terminated as provided above, the Sweetwater System and any
other Property acquired as a result of the joint exercise of powers shall be divided or distributed in
accordance with the mutual agreement of SOUTH BAY and NATIONAL CITY. After completion
of the purpose of the Agreement, to -wit, upon termination thereof, any surplus money on hand shall
be returned to SOUTH BAY and NATIONAL CITY in proportion to the contributions made in
accordance with the mutual agreement of the parties. If SOUTH BAY and NATIONAL CITY
cannot reach a mutual agreement in regard to such division and distribution of properties or money,
then such division and distribution shall be settled by arbitration as hereinafter set forth. The matter
shall be submitted to a board ofthree (3) arbitrators which shall be appointed, one by SOUTH BAY,
one by NATIONAL CITY, and the third by the first two. The public agency desiring arbitration
shall notify the other public agency by a written notice stating that it desires arbitration, that it has
appointed its nominee, and that it requests the other public agency appoint its nominee. The other
public agency shall, within thirty (30) days from the receipt of said notice, appoint its nominee.
Within fifteen (15) days after the last public agency has appointed its nominee, the two nominees shall
appoint the third. None of the arbitrators shall be a resident of or taxpayer in, or own property in,
or have a place of business in, or be an officer or employee of, either public agency. The arbitration
board shall hold at least one hearing and at least ten (10) days before said hearing shall give each
public agency written notice thereof. In making such a division of the Sweetwater System, the
arbitrators shall: (1) distribute to SOUTH BAY that portion of the water distribution system within
SOUTH BAY; (2) distribute to NATIONAL CITY that portion of the water distribution system
within NATIONAL CITY; (3) distribute jointly to SOUTH BAY and NATIONAL CITY undivided
interests in water production facilities, major transmission facilities, and the remaining portions of the
Sweetwater System in reasonable proportion to their respective distribution requirements and
systems; (4) provide for the administration of the jointly owned facilities by SOUTH BAY; (5) give
consideration to good utility operating practice in making the division so that water service may be
continued by SOUTH BAY and NATIONAL CITY in an efficient and economical manner. Each
public agency shall be given and opportunity to be heard and to present evidence. Upon conclusion
of the hearing or hearings the arbitration board shall reduce their findings of fact, conclusions of law
and the decision to writing, and shall sign the same and deliver one signed copy thereof to each public
agency. Such decision shall be final and binding upon both public agencies. A majority finding shall
govern if the arbitrator's determination is not unanimous. Each public agency shall pay its own
expenses including the expenses of the arbitrator which it nominates. The expenses of the third
arbitrator, and the administrative costs of the arbitration shall be shared equally. In all respects not
i_
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inconsistent with the forgoing, the proceedings shall be in accordance with Title 9 of Part 3 of the
California Code of Civil Procedure (as amended from time to time).
SECTION 12. No Franchise Charges
Upon acquisition by lease agreement of the Sweetwater System, the SWEETWATER
AUTHORITY shall have the exclusive right to supply water within SOUTH BAY and NATIONAL
CITY and to operate, maintain, repair, construct and extend its water facilities therein for such
purpose. Neither SOUTH BAY nor NATIONAL CITY shall levy a franchise charge against the
SWEETWATER AUTHORITY.
SECTION 13. Wells in National City
The SWEETWATER AUTHORITY shall not drill additional wells in NATIONAL CITY for
the purpose of increasing production from the under -ground beyond the 1967 level of production
without the Consent of NATIONAL CITY.
SECTION 14. Severability
If any section, sub -section, sentence, clause or phrase of this Agreement, or the
application thereof to either public agency or to any other person or circumstance, is for any reason
held invalid, it shall be deemed severable and the validity of the remainder of the Agreement, or the
application of such provision to the other public agency or to any other person or circumstance, shall
not be affected thereby. Each public agency hereby declares that it would have entered into this
Agreement, and each section, sub -section, sentence, clause and phrase thereofirrespective ofthe fact
that one or more sections, sub -sections, clauses or phrases, or the application thereof to either public
agency or to any other person or circumstance, might be held invalid.
SECTION 15. Joint Powers Agreement of 1969
The Joint Powers Agreement of 1969, dated January 28,1969, between SOUTH BAY and
NATIONAL CITY is superseded by this Agreement; provided, however, the provision of the 1969
Agreement to proceed jointly to acquire the Sweetwater System by eminent domain shall remain in
full force and effect, as modified by this Agreement.
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In WITNESS WHEREOF. the parties have caused this Joint Powers Agreement of 1972, As
Amended in 1977 between SOUTH BAY IRRIGATION DISTRICT and the CITY OF NATIONAL
CITY creating the SWEETWATER AUTHORITY to be signed by their respective officials
heretofore duly authorized by the legislative bodies thereof.
DATED: July 22, 1977
ATTEST:
CHARLOTTE A. ELEY
Secretary
(SEAL)
DATED: J u 1 y 22, 1977
ATTEST:
DONE CAMPBELL
City Clerk
( SEAL )
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SOUTH BAY IRRIGATION
DISTRICT
By DAVID C. BURNS
President
CITY OF NATIONAL CITY
By KILE MORGAN
Mayor
RESOLUTION NO. 408
RESOLUTION OF THE BOARD OF DIRECTORS OF SOUTH BAY IRRIGATION
DISTRICT APPROVING AMENDMENT A TO JOINT POWERS AGREEMENT OF 1972
IT IS HEREBY RESOLVED by the Board of Directors of South Bay
Irrigation District that Amendment A to Joint Powers Agreement of 19729
as amended and readopted in 1977, between the South Bay Irrigation
District and the City of National City creating the Sweetwater Authority
be and it is hereby approved in the form attached hereto as Exhibit A.
and the President and Secretary are authorized to sign Amendment A for
and on behalf of the District.
PASSED AND ADOPTED at a meeting of the Board of Directors of
South Bay Irrigation District held February 13, 1980 by the following
vote:
AYES: Directors Zogob, Wright, Lee and Burns
NOES: Director Steele
ABSENT: None
i
ell
President ./
ATTEST:
Fetary
AMENDMENT A
TO
JOINT POWERS AGREEMENT OF 1972 BETWEEN
THE SOUTH BAY IRRIGATION DISTRICT AND
THE CITY OF NATIONAL CITY CREATING THE
SWEETWATER AUTHORITY
THIS AMENDMENT A TO JOINT POWERS AGREEMENT OF 1972, AS
AMENDED AND READOPTED IN 1977, is made and entered into by
and between the SOUTH BAY IRRIGATION DISTRICT (hereinafter
sometimes referred to as "SOUTH BAY"), an irrigation district
organized and existing under the Irrigation District Law of
the State of California (Division 11 of the Water Code), and
the CITY OF NATIONAL CITY (hereinafter sometimes referred to
as "NATICNAL CITY"), a municipal corporation organized and
existing under the laws of the State of California (Title 4
of the Government Code).
SOUTH BAY AND NATIONAL CITY, FOR AND IN CONSIDERATION
OF THEIR MUTUAL PROMISES AND AGREEY2NT.HEREIN CONTAINED, DO
AGREE AS FOLLOWS:
Section 2(D)(5) of the Joint Powers Agreement of 1972,
as amended and readopted in 1977, between the SOUTH BAY
IRRIGATION DISTRICT and the CITY OF NATIONAL CITY creating
the SWEETWATER AUTHORITY is hereby amended to read as follows:
"(5) Controller
"The Controller of the SWEET14ATER AUTHORITY shall be
the duly appointed and acting Controller of SOUTH BAY
serving ex-officio as Controller of the SWEETWATER AUTHORITY.
The Controller shall establish and maintain such accounts,
books and records as may be required by good accounting
practice or by any provision of lease agreements of the
SWEETWATER AUTHORITY and he shall perform such other duties
as are specified by the Governing Board. There shall be
strict accountability of all funds and report of all re-
ceipts and disbursements. The accounts, books and records
of,the AUTHORITY shall be open to inspection at all reason-
able times by representatives of SOUTH BAY or NATIONAL CITY.
The Controller shall draw warrants to pay demands against
the AUTHORITY when the demands have been approved by the
General Manager, or in his absence the Operations Hanacer.
Governing Board. The Controller shall, with the approval of
the Governing Board, contract with a certified public ac-
countant to make an annual audit of the accounts and records
of the AUTHORITY. The minimum requirements of the audit
EXHIBIT "A"
shall be those prescribed by the State Controller for Special
Districts under Section 26909 of the Government Code and
shall conform'to generally accepted auditing standards. A
report thereof shall be filed as public records with SOUTH
BAY and NATIONAL CITY and also with the County Auditor of
San Diego County. Such reports shall be filed within twelve
months of the end of the fiscal year under examination."
IN WITNESS WHEREbF, SOUTH BAY and NATIONAL CITY have
caused this Amendment A to Joint Powers Agreement of
1972 to be signed by their respective officials heretofore
duly authorized by the legislative bodies thereof.
Dated: l 1
-0
ATTEST:
S �retary
(SEAL)
SOUTH BAY IRP?GATION DISTRICT
By
President ✓ '
Dated: _� CITY OF NATIONAL CITY
By till
Mayor
ATTEST:
City Clerk
(SEAL)
.2-
RESOLUTION NO. 484
RESOLUTION OF THE BOARD OF DIRECTORS
OF SOUTH BAY IRRIGATION DISTRICT
APPROVING AMENDMENT TO JOINT POWERS AGREEMENT
OF 1972
IT IS HEREBY RESOLVED by the Board of Directors of South Bay
Irrigation District that Amendment B to the Joint Powers
Agreement of 1972, as amended and readopted in 1977, between the
South Bay Irrigation District and the City of National City
creating the Sweetwater Authority be and it is hereby approved in
the form attached hereto as Exhibit A, and the President and
Secretary are authorized to sign Amendment B for and on behalf of
the District.
PASSED AND ADOPTED at a meeting of the Board of Directors of
the South Bay Irrigation District held April 10, 19900 by the
following vote, to wit:
AYES: Directors Steele, Wright, Smith, Pocklington and Welsh
NOES: None
ABSENT: None
ID
President
ATTEST:
cretary
jcme\sbWra.&mbj
RESOLUTION NO. 13,305
RESOLUTION AUTHORIZING EXECUTION OF AMENDMENT A
TO JOINT POWERS AGREEMENT OF 1972
BE IT RESOLVED by the City Council of the City
of National City that Amendment A to Joint Powers Agreement
of 1972, as amended and readopted in 1977 between the South
Bay Irrigation District and the City of National City creating
the Sweetwater Authority, be and it is hereby approved in the
form attached hereto as Exhibit A.
BE IT FURTHER RESOLVED that the Mayor is authorized
and directed to execute and the City Clerk is authorized and
directed to attest, said Amendment A for and on behalf of said
City.
PASSED AND ADOPTED this 1st day of April, 1980.
MA
ATTEST:
7 CITY CLE ����
AMENDMENT B
TO
JOINT POWERS AGREEMENT OF 1972 BETWEEN
THE SOUTH BAY IRRIGATION DISTRICT AND
THE CITY OF NATIONAL CITY CREATING THE
SWEETWATER AUTHORITY
THIS AMENDMENT B TO JOINT POWERS AGREEMENT OF 1972, AS AMENDED AND
READOPTED IN 1977, is made and entered into by and between the SOUTH
BAY IRRIGATION DISTRICT (hereinafter sometimes referred to as "SOUTH
BAY"), an irrigation district organized and existing under the
Irrigation District Law of the State of California (Division 11 of
the Water Code), and the CITY OF NATIONAL CITY (hereinafter sometimes
referred to as "NATIONAL CITY"), a municipal corporation organized
and existing under the laws of the State of California (Title 4 of
the Government Code).
SOUTH BAY AND NATIONAL CITY, FOR AND IN CONSIDERATION OF THEIR
MUTUAL PROMISES AND AGREEMENT HEREIN CONTAINED, DO AGREE AS FOLLOWS:
1. Section 11 of the Joint Powers Agreement of 1972, as amended
and readopted in 1977, between the SOUTH BAY IRRIGATION DISTRICT and
the CITY OF NATIONAL CITY creating the SWEETWATER AUTHORITY is hereby
amended to read as follows:
"Section 11. Term. Amendments. Termination
(A) This Agreement shall be effective when signed by SOUTH
BAY and NATIONAL CITY, may be amended by mutual consent,
and shall continue until terminated by mutual consent or
by either SOUTH BAY or NATIONAL CITY upon one year's
written notice; provided, however, this Agreement cannot
be terminated until all of SWEETWATER AUTHORITY'S revenue
bonds and the interest, shall have been paid in full or
adequate provision for such payment shall have been
made."
2. Section 16 shall be added to the Joint Powers Agreement of
1972, as amended and readopted in 1977, between the SOUTH BAY
IRRIGATION DISTRICT and the CITY OF NATIONAL CITY creating the
SWEETWATER AUTHORITY to read as follows:
"Section 16. Disposition of Property
The Authority shall sell or otherwise dispose of property only
upon a five/seventh's vote of the Governing Board and only if:
(A) The property so sold or exchanged is non -operative, is
not needed for the efficient and proper operation of the
Water System, or, if such property be material or equip-
ment, is worn out; and
- 1 -
EXHi13I"I A
(B) The consideration to be received for the property is the
market value thereof; and
(C) If the market value of any such property shall, in the
opinion of the Authority, exceed the amount of $425.0000
times the ratio of the value of the Engineering News
Record Construction Cost Index as of the next previous
August 1 to the value of said index as of August 1, 1989,
the Authority shall have been furnished an Engineer's
Certificate certifying the market value of the property
and further certifying that such property is non -
operative, and is not needed for the efficient and proper
operation of the Water System, or is worn out. To the
extent required by the Resolution, the Authority may
require such opinions, certificates and other documents
as it may deem necessary before permitting any sale or
exchange of properties which are a part of the Water
System."
IN WITNESS WHEREOF, SOUTH BAY and NATIONAL CITY have caused
this Amendment B to the Joint Powers Agreement of 1972 to be signed
by their respective officials heretofore duly authorized by the
legislative bodies thereof.
Dated: 04L4,1 /0 lr%n SOUTH BAY IRRIGATION DISTRICT
ATTEST:
4ZkL
etary
Dated: - - / 9- 90
ATTEST:
City Clerk
(SEAL)
CMC\SWAJPA.AB
By 1 a J : : _ J .G
Presiders
CITY OF NATIONAL CITY
- 2 -
DEC 1 0
RESOLUTION NO. 2001 _ �,gQ
wee ater Authwity
RESOLUTION OF THE CITY COUNCIL Encineoring
OF THE CITY OF NATIONAL CITY
CONSENTING TO INCREASED PRODUCTION 5-:S
OF NATIONAL CITY WELLS
WHEREAS. National City is a member of the Sweetwater Authority, a joint
powers authority ("Sweetwater"). consisting of the South Bay Irrigation District and the City
of National City; and
WHEREAS, Sweetwater obtains water for sale to customers from wells located
in the City of National City (-the National City Wells"); and
WEMREAS, Scction 13 of the Joint Powers Agreement establishing Sweetwater
_r provides! that Sweetwater shall not drill additional wells in National City for the purpose of
increasing production from the underground beyond the 1967 level of production without the
consent of National City; and
WRMMAS, Sweetwater has maintaincd and operated The National City Wells
since 1M and has developed hydrologic information and operating methods which could
enable it to produce additional water from the underground beyond the 1967 level of
production; and
WHEREAS, it is in the interest of all customers of Sweetwater including those
customers residing is National City that the production of the National City Wells be increased
so as to increase the percentage of local groundwater being supplied to Sweetwater customera.
NOW. THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby consents to the construction and operation of projects by Sweetwater to
drill and operate additional welts is National City to increase the Production of local
groundwater to A -level of 10.000 acre feet per year.
PASSED and ADOPTED this a day of December, 2001.
I
APPROVED AS TO FORM:
Dootge H. , III
City Attorney
Passed and adopted by the Council of the City of National City, California, on December 4,
2001, by the following vote, to -wit:
Ayes: Councilmembers Beauchamp, Inzunza, Morrison, Zarate, Waters,
Nays: None.
Absent: None.
Abstain: None.
I,
AUTHENTICATED BY: GEORGF fr. WATERS
Mayor of the City ofNatbnat Ctw. Callforaia
City Clerk of the City of National City, California
By
Deputy
I HEREBY CERTIFY that the above and foregoing Iva a A" true and coact copy of
RESOLUTION NO. 2001-190 of the City of National dry.' California. passed and adopted by
the Council of amid City on December 4, 2001.
o
City qla& of dw ClIfN84und City, California
By:
Dgxay
JOINT POWERS AGREEMENT OF 19727
AS AMENDED AND READOPTED IN 1977,
BETWEEN
THE SOUTH BAY IRRIGATION DISTRICT
AND
THE CITY OF NATIONAL CITY
CREATING
THE SWEETWATER AUTHORITY
[EFFECTIVE APRIL 1, 2002 INCLUDING THEIST AND 2ND AMENDMENT]
0 SDPUB\CMC\259167
TABLE OF CONTENTS
PAGE
Recitals
I
Section I
Purposes of Agreement and Common Powers to be Exercised ....
I
Section 2.
Sweetwater Authority ..................................
2
Section 3.
Powers
6
Section 4.
Fiscal Year
Section 5.
Official Bond
7
Section 6.
Payments and Advances ................................
8
Section 7.
Issuance of Bonds
Section S.
Litigation Expenses ....................................
9
Section 9.
Contributions
Section 10.
San Diego County Water Authority- Standby Charge .........
10
Section 11.
Term, Amendments, Termination ........................
11
Section 12.
No Franchise Charges ................................
13
Section 13.
Wells in National City ................................
13
Section 14.
Severability .........................................
13
Section 15.
Joint Powers Agreement of 1969 .........................
13
Section 16.
Disposition of Property
Execution.....................................................14
SDPUBkCMC\259197
Joint Powers Agreement of 1972, as Amended and Readopted
in 1977, Between the South Bay Irrigation District and the City
of National City Creating the Sweetwater Authority.
THIS AGREEMENT, dated July 22, 1977, is made and entered into by and between the
SOUTH BAY IRRIGAT ION DISTRICT (hereinafter sometimes referred to as "SOUTH BAY"),
an irrigation district organized and existing under the Irrigation District Law ofthe State of California
(Division 11 of the Water Code), and the CITY OF NATIONAL CITY (hereinafter sometimes
referred to as "NATIONAL CITY") , a municipal corporation organized and existing under the laws
of the State of California (Title 4 of the Government Code).
RECITALS
SOUTH BAY and NATIONAL CITY and the residents in each of them are served by the
water supply and distribution system owned by the California -American Water Company, which
system is known as the Sweetwater District of the San Diego Bay Division (hereinafter sometimes
referred to as "Sweetwater System"). SOUTH BAY and NATIONAL CITY are in the process of
acquiring the Sweetwater System by means of an eminent domain proceeding ( San Diego Superior
Court No.306441). SOUTH BAY and NATIONAL CITY find that it would be in the best interests
of each public agency and the residents of each of them to create the "SWEETWATER
AUTHORITY" to acquire, own, lease, operate, manage, maintain and improve the Sweetwater
System so that their residents will be supplied with water at the lowest possible cost consistent with
sound economy, prudent management and the security and payment of the principal and interest of
the revenue bonds to be issued by SOUTH BAY.
NOW, THEREFORE, SOUTH BAY AND NATIONAL CITY, FOR AND IN CONSIDERATION OF THEIR
MUTUAL PROMISES AND AGREEMENTS HEREIN CONTAINED, DO AGREE AS FOLLOWS:
SECTION 1. Purposes of Agreement and Common Powers to be Exercised
This Agreement is made pursuant to the provisions of Article 1, Chapter 5, Division 7,
Title 1 ofthe Government Code ofthe State of California (commencing with Section 6500 hereinafter
sometimes called "Act" relating to the joint exercise of powers common to public agencies, in this
case being SOUTH BAY and NATIONAL CITY, each in which is Authorized to contract with the
SDPUB\CMC\259187 I
other pursuant thereto. The purposes of this Agreement are to create the SWEETWATER
AUTHORITY, to provide for the acquisition, leasing, ownership, financing, operation, management,
maintenance. repair and improvement of the Sweetwater System, and the construction of additions
and improvements thereto, for the supplying of water for domestic irrigation, sanitation, industrial,
fire protection, recreation or any other public or private uses. Each public agency has in common the
powers to acquire, own, finance, lease, operate, manage, maintain, repair, improve and construct such
facilities for such purposes. The foregoing purposes Will be accomplished and common powers
exercised in the manner hereinafter set forth.
SECTION 2. Sweetwater Authority
(A) Creation of Authority
Pursuant to Sections 6506 and 6507 of the Act, there is hereby created a public entity to
be known as the "SWEETWATER AUTHORITY." The SWEETWATER AUTHORITY shall be
a public entity separate and apart from SOUTH BAY and NATIONAL CITY and a "local
government" within the meaning of Section 3(c) of Article 3QII of the California Constitution. The
boundaries of the SWEETWATER AUTHORITY shall be coterminous with the boundaries of
SOUTH BAY and NATIONAL CITY as they exist from time to time. The debts, liabilities and
obligations ofthe SWEETWATER AUTHORITY shall not constitute debts, liabilities or obligations
of SOUTH BAY or NATIONAL CITY.
(13) Governing Board
The SWEETWATER AUTHORITY shall be administered by a Governing Board of seven
(7) members, each serving in his individual capacity as a member of the Governing Board. Such
Governing Board shall be called the "Governing Board ofthe SWEETWATER AUTHORITY." All
voting power shall reside in the Governing Board.
Five (5) members ofthe Governing Board ofthe SWEETWATER AUTHORITY shall be the
five persons who are from time to time the incumbent members ofthe Board of Directors of SOUTH
BAY.
Two ( 2) members of the Governing Board of the SWEETWATER AUTHORITY shall
be appointed by the Mayor, subject to confirmation by the City Council, of NATIONAL CITY,
They shall be electors of NATIONAL CITY at the time of assuming such offices and at all times
SDPUB\CMC\259187 2
during their terms of office. They shall serve four ( 4) year terms. Any vacancy that occurs among
the NATIONAL CITY members ofthe Governing Board shall be tilled by appointment by the Mayor,
subject to confirmation by the City Council, of NATIONAL CITY.
( C ) Meetings of the Governing Board
(1) Regular Meetings
The Governing Board of the SWEETWATER AUTHORITY shall provide for its regular
meetings. The date, hour and place of holding the regular meetings shall be fixed by Resolution of
the Governing Board. A copy of such Resolution shall be filed with SOUTH BAY and NATIONAL
CITY.
(2) Ralph M. Brown Act
All meetings of the Governing Board of the SWEETWATER AUTHORITY, including,
without limitation, regular, adjourned regular and special meetings, shall be called, noticed, held and
con- conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with
Section 54950 of the Government Code), as amended
(3) Minutes
The Secretary of the SWEETWATER AUTHORITY shall cause to be kept minutes of the
meetings of the Governing Board and shall, after each meeting, cause a copy of the minutes to be
forwarded to each member of the Governing Board and to SOUTH BAY and NATIONAL CITY.
(4) Quorum
A majority of the Governing Board of the SWEETWATER AUTHORITY shall constitute
a quorum for the transaction of business, except that less than a quorum may adjourn from time to
time; provided that the affirmative vote of at least four members of the Governing Board shall be
required for any action of the Governing Board, other than adjournment.
SDPUB\CMC\259197 3
(D) Officers and Duties
(1) Chairman
The Governing Board of the SWEETWATER AUTHORITY shall elect one of its
members as Chairman. The Chairman's term ofoffice shall be two years and until his successor takes
office, The Chairman of the Governing Board shall preside at its meetings and shall perform such
other duties as are specified by the Governing Board.
(2) Tice -Chairman
The Governing Board of the SWEETWATER AUTHORITY shall elect one of its
members Vice -Chairman, The Vice -Chairman's term of office shall be two years and until his
successor takes office. The Vice -Chairman shall perform all the duties ofthe Chairman in the absence
of the Chairman or in the event of the Chairman's inability to perform such duties.
(3) Secretary
The Secretary of the SWEETWATER AUTHORITY shall be appointed by the Governing
Board ofthe SWEETWATER AUTHORITY and shall serve at the pleasure ofthe Governing Board.
The Secretary may but need not be a member of the Governing Board. The Secretary shall be
responsible for the minutes and other records of the proceedings of the Governing Board and shall
perform such other duties as are specified by the Governing Board.
(4) Treasurer
The Treasurer of the SWEETWATER AUTHORITY shall be the Treasurer of SOUTH
BAY serving ex-officio as Treasurer ofthe SWEETWATER AUTHORITY. The Treasurer shall have
custody ofall the money ofthe SWEETWATER AUTHORITY, from whatever source, and he shall:
(a) Receive and receipt for all money of the SWEETWATER AUTHORITY and place
it in the SOUTH BAY treasury to the credit ofthe SWEETWATER AUTHORITY;
(b) Be responsible upon his official bond for the safe- keeping and disbursement
of all SWEETWATER AUTHORITY money so held by him;
SDPUB\CMC\259157 4
(c) Pay any other sums due from the SWEETWATER AUTHORITY from
AUTHORITY money, or any portion thereof, only upon warrants of the
Controller of the SWEET WATER AUTHORITY;
(d) Verify and report in writing on the first day of July, October, January
and April of each year to the SWEETWATER AUTHORITY and to
SOUTH BAY and NATIONAL CITY the amount of money he holds
for the AUTHORITY, the amount of receipts since his last report,
and the amount paid out since his last report; and
(e) Perform such other duties as are specified by the Governing Board.
(5) Controller
The Controller ofthe SWEETWATER AUTHORITY shall be the duly appointed and acting
Controller of SOUTH BAY serving ex-officio as Controller of the SWEETWATER AUTHORITY.
The Controller shall establish and maintain such accounts, books and records as may be required by
good accounting practice or by any provision of lease agreements of the SWEETWATER
AUTHORITY and he shall perform such other duties as are specified by the Governing Board. There
shall be strict accountability of all funds and report of all receipts and disbursements. The accounts,
books and records of the AUTHORITY shall be open to inspection at all reasonable times by
representatives of SOUTH BAY or NATIONAL CITY. The Controller shall draw warrants to pay
demands against the AUTHORITY when the demands have been approved by the General -Manager,
or in his absence the Operations Manager, of the AUTHORITY, subject to limitations imposed by
the Governing Board. The Controller shall, with the approval of the Governing Board, contract with
a certified public accountant to make an annual audit of the accounts and records of the
AUTHORITY. The minimum requirements of the audit shall be those prescribed by the State
Controller for Special Districts under Section 26909 of the Government Code and shall conform to
generally accepted auditing standards. A report thereof shall be filed as public records with SOUTH
BAY and, NATIONAL CITY and also with the County Auditor of San Diego County. Such reports
shall be filed within twelve months of the end of the fiscal year under examination."
(As Amended 1980.)
SDPUB\CMC\259187 5
(6) Attorney
The Attorney for the SWEETWATER AUTHORITY shall be the duly appointed and acting
Attorney for SOUTH BAY (or his duly authorized deputy) , serving ex-officio as Attorney for the
SWEETWATER AUTHORITY. The Attorney for the AUTHORITY or his designated deputy shall
attend all meetings of the Governing Board, but his absence shall not affect the validity of any
meeting. The Attorney shall perform such other duties as are specified by the Governing Board.
(E) Rules
The Governing Board may adopt, from time to time, such rules and regulations for the
conduct of its meetings and affairs as may be required.
SECTION 3. Powers
The SWEETWATER AUTHORITY shall have the powers common to SOUTH BAY and
NATIONAL CITY set forth in Section 1, as limited by this Agreement. The SWEETWATER
AUTHORITY, by and through its Governing Board, is hereby authorized, in its own name, to do all
acts necessary, convenient or appropriate for the exercise of said common powers for the purposes
set forth in Section 1 and to do any or all of the following:
(a) To make and enter into contracts, including agreements necessary to comply with
procedural requirements in connection with any federal or state grants;
(b) To employ agents, officers and employees;
(c) To lease, acquire, construct, manage, maintain or operate any buildings, works or
improvements;
(d) To acquire, hold, lease or dispose of property;
(e) To incur debts, liabilities or obligations which do not constitute a debt, liability or
obligation of SOUTH BA Y or NATIONAL CITY;
(f) To sue and be sued in its own name;
(g) To receive gifts, contributions and donations of property, funds, services and other
forms of assistance from persons, firms, corporations and any governmental entity,
SDPUB\CM0259187 6
provided that such gifts, contributions or donations are consented to by the
AUTHORITY in each instance;
(h) To lease, as lessee, from SOUTH BAY, as lessor, the Sweetwater System including
both real and personal property thereof, and operating capital and reserves therefor;
(i) To fix the compensation paid to the Governing Board, Secretary, Treasurer,
Controller and Attorney, provided, however, the compensation of the Board
members shall not exceed that authorized for Irrigation District Board members
( see Water Code Section 21166 ) from time to time,
(j) To prescribe the duties, compensation and other terms and conditions of
employment of other agents, officers and employees;
(k) To adopt reasonable rules and regulations for the conduct of the Sweetwater System
and to prescribe, revise and collect charges for services facilities and water furnished;
(1) To acquire, own. lease, operate. manage, maintain. repair and improve the
Sweetwater System, and to construct additions and improvements thereto.
Such powers shall be exercised in the manner provided in the Act. and. except as expressly
set forth herein. subject only to such restrictions upon the manner of exercising such powers as are
imposed upon SOUTH BAY in the exercise of similar powers.
SECTION 4. Fiscal Year
The fiscal year of the SWEETWATER AUTHORITY shall be July 1 to June 30.
SECTION 5. Official Bond
The Manager of the SWEETWATER AUTHORITY is hereby designated as the person
who shall have charge of, handle and have access to the property of the SWEETWATER
AUTHORITY. The Manager shall file an official bond in an amount fixed by SOUTH BAY and
NATIONAL CITY. The SWEETWATER AUTHORITY shall procure and maintain adequate
snrus+cMc\259197 7
fidelity insurance or bonds on all directors, officers, agents and employees or other persons handling
or responsible for any revenues or funds ofthe SWEETWATER AUTHORITY and the Sweetwater
System. All bond and insurance premiums shall be paid by the SWEETWATER AUTHORITY.
SECTION 6. Payments and Advances
SOUTH BAY and NATIONAL CITY may, in appropriate circum- stances or when
required by this Agreement: (a) make contributions from their treasuries for the purposes set forth
in this Agreement; (b) make payments of public funds to defray the cost of such purposes; (c) make
advances of public funds for such purposes, such advances to be repaid as provided in this
Agreement; or (d) contribute the use of personnel, equipment or property of one or more parties to
this Agreement in lieu of other contributions or advances.
SECTION 7. Issuance of Bonds
(A) SOUTH BAY shall sell $22,500,000 principal amount of revenue bonds pursuant to
the Revenue Bond law of 1941 to pay and provide for: the sum due the California -American Water
Company under the Agreement Re Final Order of Condemnation in the eminent domain proceeding,
which agreement was approved by Order of the Court on April 16, 1977; the cost of the sale and
issuance of the revenue bonds; bond serve funds and other reserve funds; working capital; and other
costs and expenses incidental to or connected with the acquisition and financing of the Sweetwater
System as authorized by the Revenue Bond Law of 1941, and as authorized at the May 31, 1977,
election. Upon the sale and issuance of the revenue bonds by SOUTH BAY, the unissued
$22,500,000 revenue bonds of NATIONAL CITY authorized at the May 31, 1977, election shall be
cancelled.
(B) Concurrently with the issuance of SOUTH BA Y's revenue bonds: NATIONAL
CITY shall take such steps as are necessary to cause title to the Sweetwater System to vest in
SOUTH BA Y pursuant to the Final Order of Condemnation in the eminent domain proceeding;
SOUTH BA Y shall lease the Sweetwater System to the SWEETWATER AUTHORITY; the
SWEETWATER AUTHORITY shall assume the obligations to California -American Water Company
set forth in para- graphs 4, 7 and 8 of the Agreement Re Final Order of Condemnation; SOUTH BA
Y and NATIONAL CITY shall assign to SWEETWATER AUTHORITY all of their interest in the
unexpended balances of contributions in aid of construction, advances for construction, accounts
SDPUB\CMC\259187 8
receivable and unbilled revenues from customers to be remitted by California - American Water
Company under paragraph 12 of the Agreement Re Final Order of Condemnation.
SECTION 8. Litigation Expenses
(A) SOUTH BAY and NATIONAL CITY shall each pay its own attorneys' fees in
connection with the eminent domain proceeding (San Diego Superior Court No. 306441) .
(B) All other expenses of proceeding No.306441, including (without limitation) expert
witness fees and court costs, in the total amount of $453,025.68, have been advanced by SOUTH
BAY. SOUTH BAY's share of such expenses is $330,708.95 and NATIONAL CITY's share is
$122,316.93. NATIONAL CITY's share of such expenses advanced by SOUTH BAY shall bear
interest at the rate of 5.5% per annum from and after November 1, 1971. NATIONAL CITY shall
reimburse SOUTH BAY for NATIONAL CITY's $ 122.316.93 share of the expenses plus the
interest thereon. The total amount due from NATIONAL CITY as of November 1, 1977, is
$162.681.51. Such reimbursement shall be made from lawfully available funds in four (4) payments
(interest included), as follows: $44.150 on November 1, 1977,1978 and 1979; $43,467 on November
1, 1980.
SECTION 9. Contributions
SOUTH BAY and NATIONAL CITY shall contribute to SWEETWATER AUTHORITY,
at no expense to SWEETWATER AUTHORITY and with no obligation of repayment on the part
of SWEETWATER AUTHORITY, the following:
(1) All attorney's fees incurred by them in connection with the eminent domain
proceeding;
(2) All other expenses of the eminent domain proceeding, including (without limitation)
expert witness fees and court costs;
(3) All costs of conducting the revenue bond elections held May 31, 1977
SDPUB\CMC\259187 9
ISECTION 10. San Diego County Water Authority -Standby Charge
(A) SOUTH BAY and NATIONAL CITY hereby empower the SWEETWATER
AUTHORITY (upon its acquisition by lease of the Sweetwater System and during the term of the
lease or of this Agreement, whichever is longer) to order, receive, sell and distribute through the
Sweetwater System ( as it is constituted from time to time) for use within SOUTH BAY and
NATIONAL CITY, respectively, all water that SOUTH BAY and NATIONAL CITY, respectively,
shall become entitled to purchase from the San Diego County Water Authority to the extent that the
SWEETWATER AUTHORITY shall require the same. The SWEETWATER AUTHORITY does
not by this Agreement acquire any interest in the San Diego County Water Authority water rights of
SOUTH BAY or NATIONAL CITY other than the right to order, receive, sell and distribute said
water in accordance with, and during the terms of, this Agreement and the Sweetwater System lease.
The SWEET WATER AUTHORITY shall order such water directly from the San Diego County
Water Authority and shall pay the Water Authority for such water. The SWEETWATER
AUTHORITY may order from the San Diego County Water Authority amounts of water up to the
aggregate amounts available to SOUTH BAY and NATIONAL CITY. If the SOUTH BA Y or
NATIONAL CITY component of an order exceeds the amount of water available to either agency
from the San Diego County Water Authority, then to the extent the other agency shall have
unordered County Water Authority water entitlement available it shall be used and a like amount of
local water available to the entitlement -short agency shall be released to the other agency in exchange
therefor, at its request. If no request is made within one year of a use, the right to the release of
exchange water therefor shall terminate as to that individual use.
(B) Upon three (3) months' written notice to the SWEETWATER AUTHORITY, SOUTH
BAY and/or NATIONAL CITY may, at their/its option, elect to charge the SWEETWATER
AUTHORITY standby charges to the extent hereinafter provided for the right to receive water from
the San Diego County Water Authority. Upon the exercise of the option to make a standby charge
by either SOUTH BAY or NATIONAL CITY (or both) , then an equivalent standby charge shall
be made by both SOUTH BAY and NATIONAL CITY. (For example, if SOUTH BAY charged a
standby charge equal to 50% of the Metropolitan Water District of Southern California taxes levied
in SOUTH BAY, then it would be mandatory for NATIONAL CITY to charge a standby charge
equal to 50% of the MWD taxes levied in National City.) The option to charge a standby charge shall
not be exercised unless at the time ofthe exercise of the option there is sufficient money in the surplus
account under the lease of the Sweetwater System to pay in full one year's standby charges for both
SDPUB\CMC\259187 10
SOUTH BAY and NATIONAL CITY. The surplus account under the lease contains money
remaining on hand after paying: ( I) maintenance and operation costs of the Sweetwater System; (2)
rental as provided in the lease of the Sweetwater System; and (3) repair and replacement reserve
account deposits as provided in the lease of the Sweetwater System, The SWEETWATER
AUTHORITY shall only be obligated to pay, and shall only pay, such charges from moneys, if any,
in said surplus account until the SOUTH BAY revenue bonds and the interest thereon shall have been
paid in full or adequate provision for such payment shall have been made, Until the SOUTH BAY
revenue bonds, and the interest thereon, shall have been paid in full or adequate provision for such
payment shall have been made, the amounts of such standby charges shall not exceed fifty percent
(50%) of any Metropolitan Water District of Southern California and San Diego County Water
Authority taxes for each fiscal year (July 1 to June 30) applicable to taxable property situated within
the public agency (SOUTH BAY or NATIONAL CITY) making sutth standby charge. If a standby
charge is made and to the extent moneys are available in said surplus account, sixty percent (60%)
thereof shall be payable by the SWEETWATER AUTHORITY by December 1 and forty percent
(401%) by May 1 of the fiscal year for which the charge is made or at such other times and in such
installments as are necessary to correspond to the requirements of the Metropolitan Water District
and the County Water Authority as to cash payments in lieu of taxes, as such requirements may be
changed from time to time. Nothing herein shall prevent SOUTH BAY or NATIONAL CITY from
using the proceeds from its respective standby charge for any lawful purpose.
(C) SOUTH BAY and NATIONAL CITY agree to: remain members of the San Diego
County Water Authority at all times during the term of this Agreement; take any action necessary to
protect their water rights and other rights as members of the Water Authority; perform such acts and
execute such documents as may be necessary to accomplish the purposes of this Section.
SECTION 11. Term, Amendments, Termination
(A) This Agreement shall be effective when signed by SOUTH BAY and NATIONAL
CITY, may be amended by mutual consent, and shall continue until terminated by mutual consent or
by either SOUTH BAY or NATIONAL CITY upon one year's written notice; provided, however,
this Agreement cannot be terminated until all of SWEETWATER AUTHORITY'S revenue bonds
and the interest, shall have ben paid in full or adequate provision for such payment shall have been
made.
(As Amended 1990.)
SDPUB\CMC\259187 11
(B) If this Agreement is terminated as provided above, the Sweetwater System and any
other Property acquired as a result of the joint exercise of powers shall be divided or distributed in
accordance with the mutual agreement of SOUTH BAY and NATIONAL CITY. After completion
of the purpose ofthe Agreement, to -wit, upon termination thereof, any surplus money on hand shall
be returned to SOUTH BAY and NATIONAL CITY in proportion to the contributions made in
accordance with the mutual agreement of the parties. If SOUTH BAY and NATIONAL CITY
cannot reach a mutual agreement in regard to such division and distribution of properties or money,
then such division and distribution shall be settled by arbitration as hereinafter set forth. The matter
shall be submitted to a board of three (3) arbitrators which shall be appointed, one by SOUTH BAY,
one by NATIONAL CITY, and the third by the first two. The public agency desiring arbitration
shall notify the other public agency by a written notice stating that it desires arbitration, that it has
appointed its nominee, and that it requests the other public agency appoint its nominee. The other
public agency shall, within thirty (30) days from the receipt of said notice, appoint its nominee.
Within fifteen (15) days after the last public agency has appointed its nominee, the two nominees shall
appoint the third. None of the arbitrators shall be a resident of or taxpayer in, or own property in,
or have a place of business in, or be an officer or employee of, either public agency. The arbitration
board shall hold at least one hearing and at least ten (10) days before said hearing shall give each
public agency written notice thereof. In making such a division of the Sweetwater System, the
arbitrators shall: (1) distribute to SOUTH BAY that portion of the water distribution system within
SOUTH BAY; (2) distribute to NATIONAL CITY that portion of the water distribution system
within NATIONAL CITY; (3) distribute jointly to SOUTH BAY and NATIONAL CITY undivided
interests in water production facilities, major transmission facilities, and the remaining portions ofthe
Sweetwater System in reasonable proportion to their respective distribution requirements and
systems; (4) provide for the administration ofthe jointly owned facilities by SOUTH BAY; (5) give
consideration to good utility operating practice in making the division so that water service may be
continued by SOUTH BAY and NATIONAL CITY in an efficient and economical manner. Each
public agency shall be given and opportunity to be heard and to present evidence. Upon conclusion
of the hearing or hearings the arbitration board shall reduce their findings of fact, conclusions of law
and the decision to writing, and shall sign the same and deliver one signed copy thereof to each public
agency. Such decision shall be final and binding upon both public agencies. A majority finding shall
govern if the arbitrator's determination is not unanimous. Each public agency shall pay its own
expenses including the expenses of the arbitrator which it nominates. The expenses of the third
arbitrator, and the administrative costs of the arbitration shall be shared equally. In all respects not
SDPUBICMC\259187 12
inconsistent with the forgoing, the proceedings shall be in accordance with Title 9 of Part 3 of the
California Code of Civil Procedure (as amended from time to time).
SECTION 12. No Franchise Charges
Upon acquisition by lease agreement of the Sweetwater System, the SWEETWATER
AUTHORITY shall have the exclusive right to supply water within SOUTH BAY and NATIONAL
CITY and to operate, maintain, repair, construct and extend its water facilities therein for such
purpose. Neither SOUTH BAY nor NATIONAL CITY shall levy a franchise charge against the
SWEETWATER AUTHORITY.
SECTION 13. Wells in National City
The SWEETWATER AUTHORITY may drill and operate wells in National City to produce
local groundwater in an amount not to exceed 10,000 acre feet per year.
(As Amended 2001.)
SECTION 14. Severability
If any section, sub -section, sentence, clause or phrase of this Agreement, or the
application thereof to either public agency or to any other person or circumstance, is for any reason
held invalid, it shall be deemed severable and the validity of the remainder of the Agreement, or the
application of such provision to the other public agency or to any other person or circumstance, shall
not be affected thereby. Each public agency hereby declares that it would have entered into this
Agreement, and each section, sub -section, sentence, clause and phrase thereof irrespective of the fact
that one or more sections, sub -sections, clauses or phrases, or the application thereof to either public
agency or to any other person or circumstance, might be held invalid.
SECTION 15. Joint Powers Agreement of 1969
The Joint Powers Agreement of 1969, dated January 28,1969, between SOUTH BAY and
NATIONAL CITY is superseded by this Agreement; provided, however, the provision of the 1969
Agreement to proceed jointly to acquire the Sweetwater System by eminent domain shall remain in
full force and effect, as modified by this Agreement.
SECTION 16. Disposition of Property
The Authority shall sell or otherwise dispose of property only upon a five/seventh's vote of
the Governing Board and only if:
(A) The property so sold or exchanged is non -operative, is not needed for the efficient and
proper operation ofthe Water System, or, if such property be material or equipment, is worn out; and
SDPUB\CMC\25919 7 13
(B) The consideration to be received for the property is the market value thereof, and
(C) If the market value of any such property shall, in the opinion of the Authority, exceed
the amount of $425,000 times the ratio of the value of the Engineering News Record Construction
Cost Index as of the next previous August 1 to the value of said index as of August 1, 1989, the
Authority shall have been famished an Engineer's Certificate certifying the market value of the
property and further certifying that such property is non -operative, and is not needed for the efficient
and proper operation of the Water System, or is worn out. To the extent required by the Resolution,
the Authority may require such opinions, certificates and other documents as it may deem necessary
before permitting any sale or exchange of properties which are a part of the Water System.
(Amended 1990).
SDPUB\CMC\259197 14
In WITNESS WHEREOF. the parties have caused this Joint Powers Agreement of 1972, As
Amended in 1977 between SOUTH BAY IRRIGATION DISTRICT and the CITY OF NATIONAL
CITY creating the SWEETWATER AUTHORITY to be signed by their respective officials
heretofore duly authorized by the legislative bodies thereof.
DATED: July 22, 1977
ATTEST:
CHARLOTTE A. ELEY
Secretary
(SEAL)
DATED: J my 22, 1977
ATTEST:
JONE CAMPBELL
City Clerk
( SEAL )
MPUMCM0259197 15
SOUTH BAY IRRIGATION
DISTRICT
By DAVID C. BURNS
President
CITY OF NATIONAL CITY
By KILE MORGAN
Mayor