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HomeMy WebLinkAbout2009 CON City of San Diego - Sewer TransportationDUPLICATE nruk)0 - 'use-( ORIGINAL SEWAGE TRANSPORTATION AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND THE CITY OF SAN DIEGO DOCUMENT NO FILED `JUL 0.7 2009 OFFICE OF THE CITY CLERK SAN DIEGO. CALIFORNIA TABLE OF CONTENTS I. DEFINITIONS 2 II. OWNERSHIP AND OPERATION OF THE SAN DIEGO MUNICIPAL SEWERAGE SYSTEM 5 III. CONTRACT CAPACITY RIGHTS 9 IV. EXCEEDING CAPACITY 11 V. MONITORING 14 VI. TRANSPORTATION CHARGES 15 VII. OPERATION AND MAINTENANCE CHARGES FOR MUNICIPAL PUMP STATIONS 17 VIII. CAPITAL IMPROVEMENT PROJECTS 17 IX. CAPITAL IMPROVEMENT CHARGES 20 X. NON -ASSIGNMENT 22 XI. DISPUTE RESOLUTION 22 XII. INSURANCE 23 XIII. INTERRUPTION OF SERVICE 24 XIV. JURISDICTION 24 XV. NOTICES REQUIRED UNDER AGREEMENT 24 XVI. EFFECTIVE DATE AND TERMINATION 25 XVII. WAIVER OF BREACH 26 XVIII. GENERAL 26 EXHIBIT A CONTRACT CAPACITY EXHIBIT B FACILITIES USED BY NATIONAL CITY EXHIBIT C UNIT TRANSPORTATION RATE THIS SEWAGE TRANSPORTATION AGREEMENT is made and entered into by and between the City of San Diego, a municipal corporation ("San Diego"), and the City of National City ("National City"). RECITALS WHEREAS, San Diego owns, operates and maintains the Metropolitan Sewerage System for the purpose of treating and disposing of sewage for San Diego and certain other municipalities and districts including Participating Agencies within the San Diego region under the terms and conditions of the Regional Wastewater Disposal Agreement; and WHEREAS, San Diego also owns, operates and maintains the San Diego Municipal Sewerage System for the purpose of collecting and transporting sewage to the Metropolitan Sewerage System; and WHEREAS, due to the location of National City's sewerage system it is necessary that National City use a portion of the San Diego Municipal Sewerage System to transport its sewage to the Metropolitan Sewerage System; and WHEREAS, San Diego and National City had previously entered into an Agreement which expired on June 30, 1984 under which San Diego has authorized National City to discharge sewage into the San Diego Municipal Sewerage System for transportation to the Metropolitan Sewerage System and under which the parties had operated; and WHEREAS, the purposes of this Agreement are to: t) allow National City to discharge sewage into the San Diego Municipal Sewerage System for transportation to the Metropolitan Sewerage System; 2) establish a rate to be charged for sewage transportation services rendered by San Diego to National City; 3) establish National City's contract capacity in San Diego Municipal Sewerage System for the use of a portion of the San Diego Municipal Sewerage System; 4) reimburse San Diego for National City's share of capital costs for the Valencia Park Trunk Sewer; and 5) establish a method to allocate the capital improvement project costs of future improvements, repair, rehabilitation, or replacement to the San Diego Municipal Sewerage System as are deemed necessary by San Diego and in consultation with authorized agencies affected by the work on a fair and equitable basis. Sewage Transportation Agreement - 1 - National City City of San Diego NOW, THEREFORE, in consideration of the mutual obligations of the parties as herein expressed, San Diego and National City agree as follows: AGREEMENT I. DEFINITIONS The singular of each defined term includes the plural. For the purposes of this Agreement, the following definitions apply: Agency Sewerage System means National City's wastewater collection system, which consists of pipelines and pump stations, and collects wastewater within the agency and from other agencies. Authorized Agency means a municipality, district, or agency which has been authorized by San Diego to discharge sewage into the San Diego Municipal Sewerage System (SDMS) under sewage transportation agreement(s) with San Diego. Average Capacity means the average actual amount of discharge of sewage that the National City is allowed under this Agreement to discharge into the SDMS, averaged during a 24-hour period from midnight to midnight in the dry season and expressed as either an average rate of flow in cubic feet per second (cfs) or in million gallons per day (MGD) where 1 cfs = 0.646317 MGD. Average Daily Flow (sometimes referred to as ADF) means the flow from National City into those portions of SDMS used by National City expressed as an average rate of flow in million gallons per day (MGD) computed by dividing the total gallons discharged during the designated period (e.g., billing period, dry season, month, etc.,) by the number of days within that same period. Best Management Practices means an engineered structure, management activity, or a combination thereof, that eliminates or reduces an adverse environmental effect of a pollutant. Capital Improvement Project (sometimes referred to as CIP) means those items and activities required by sound engineering and management practices, including but not limited to acquisition, planning, design, financing, and construction, for any one or more of the following Sewage Transportation Agreement - 2 - National City City of San Diego purposes: 1) to alter, change or modify the hydraulic capacity of any part or whole of any existing SDMS facilities; 2) to improve the function and performance of any part or whole of any existing SDMS facilities; 3) to add new SDMS facilities for the purpose of altering, changing, or modifying the hydraulic capacity, or improving the function and performance of the SDMS; or 4) to perform a major repair on or replace any existing SDMS facilities. Capital Improvement Project Cost means costs associated with capital improvement projects. Contract Capacity means the amount of sewage National City is allowed under this Agreement to discharge into those portions of SDMS used by National City, up to the limits set forth in Exhibit A and expressed in terms of average capacity and peak capacity. Contract capacity as defined in this agreement shall refer to capacity only in the SDMS, and is separate and distinct from contract capacity in the Metro system as referenced in the Regional Wastewater Disposal Agreement. Design Capacity means the maximum flow which can be conveyed through a pipe segment when the ratio of depth of the flow to the diameter of the pipe segment (d/D) equals 75% for pipe segment 18 inches or greater, or 50 % for pipe segment 15 inches or smaller. The design capacity of a sewer line is determined based on the "length -weighted" average of design capacity of all pipe segments in the sewer line. In the case of a pump station, design capacity means the maximum flow that can be pumped using the main pumps, excluding the back up pumping capacity. Dry Season means the period from May 1 through September 30. Fiscal Year means the period from July 1 through June 30. Flow means the amount of wastewater, including inflow and infiltration, which is discharged into the SDMS by San Diego, National City, or any other authorized agency. Flow may be expressed in million gallons per day (MGD) or cubic feet per second (cfs). Infiltration means water other than wastewater that enters a sewerage system (including sewer service connections) from the ground through such means as defective pipes, pipe joints, connections or manholes. Infiltration does not include, and is distinguished from, inflow. Sewage Transportation Agreement - 3 - National City City of San Diego Inflow means water other than wastewater that enters a sewerage system (including sewer service connections) from sources such as roof leaders, cellar drains, yard drains, area drains, foundation drains, drains from springs and swampy areas, manhole covers, cross connections between storm sewers and sanitary sewers, catch basins, cooling towers, storm waters, surface runoff, street wash waters, or drainage. Inflow does not include, and is distinguished from, infiltration. LAFCO means the San Diego Local Agency Formation Commission Metropolitan Sewerage System (sometimes referred to as the Metro System) means those facilities and contract rights to facilities which are described in the Regional Wastewater Disposal Agreement, Document No. 00-185I7, filed May 18, 1998, or as amended. Operation and Maintenance (sometimes referred to as 0 & Ail means those items and activities required by sound engineering and management practices to maintain the hydraulic capacity, function, and performance of SDMS facilities. Operation and Maintenance Costs means the costs of operation and maintenance including, but not limited to, annual costs associated with administration, operation, maintenance, replacement (non-CIP), annual premiums, claims payments and claims administration, and overhead. Parties means San Diego and National City. Peak Contract Capacity means the highest amount of discharge of sewage that the National City is allowed under this Agreement to discharge into those portions of SDMS used by National City, measured in fifteen (15) minute intervals and expressed as either a rate of flow in cubic feet per second (cfs) or in million gallons per day (MGD) where 1 cfs = 0.646317 MGD. Peak Flow means the highest actual instantaneous flow as measured in fifteen (15) minute intervals at a metering device expressed as either a rate of flow in cubic feet per second (cfs) or in million gallons per day (MGD) (1 cfs = 0.646317 MGD). In the event of a dispute, cubic feet per second (cfs) will take precedence. Rezionat Wastewater Disposal Agreement means the "Regional Wastewater Disposal Agreement between San Diego and the Participating Agencies in the Metropolitan Sewerage System," Sewage Transportation Agreement - 4 - National City City of San Diego Document No. 00-18417, filed May 18, 1998, with the Clerk for the City of San Diego or as amended. San Diego Municipal Sewerage System (sometimes referred to as SDMS) means San Diego's wastewater collection system, which consists of pipelines and pump stations, that collects wastewater within San Diego and from the National City and other authorized agencies and conveys it to the Metropolitan Sewerage System for treatment and disposal. SDMS Facility means each element of the SDMS used or useful for the transportation of sewage, including but not limited to transmission lines, force mains, trunk sewers, interceptors, and pump stations. Sewage means wastewater and its commonly constituent substances. Sewage Transportation Service means the transportation of sewage from the point of discharge into the SDMS to the Metropolitan Sewerage System. Transportation Charge means the amount paid by National City to San Diego for the transportation of flow in the SDMS to the Metropolitan Sewerage System. This charge includes operation and maintenance costs but does not include capital improvement project costs. Unit Transportation Rate means the amount per unit distance (mile) of length of gravity sewer charged for sewage transportation service. II. OWNERSHIP AND OPERATION OF THE SAN DIEGO MUNICIPAL SEWERAGE SYSTEM A. Rights of the Parties 1. San Diego is the owner of the SDMS and of any additions to the SDMS or other facilities constructed pursuant to this Agreement. All decisions with respect to the planning, design, construction, operation and maintenance of the SDMS shall rest with San Diego. If National City's contractual right to use the SDMS is adversely impacted by the planning, design, construction, operation and maintenance of any part of SDMS, National City shall have the right to review and comment on these issues prior to any modifications to the Sewage Transportation Agreement - 5 - National City City of San Diego subject portions of the SDMS. However, National City shall only have a contractual right to use the SDMS as set forth in this Agreement. 2. Subject to the terms of this Agreement, and in conformance with all applicable laws, San Diego may transfer ownership of all or part of the SDMS at any time. San Diego shall not transfer or agree to transfer any part of the SDMS transporting sewage from National City without reserving National City's rights granted by this Agreement. In the event of a transfer, San Diego's successor in interest shall be bound by the terms of this Agreement. 3. Subject to the terms of this Agreement, National City may transfer or assign its rights and obligations under this Agreement. Any such transfer must first, however, be approved by San Diego by written agreement. National City may not transfer its rights if San Diego determines, after consultation with National City, that the proposed transfer will imbalance, or will otherwise adversely impact San Diego's ability to operate the SDMS or the Metro System. B. Duties of San Diego 1. Subject to the terms of this Agreement, San Diego agrees to provide sewage transportation services to National City for the contract capacity set forth in Exhibit A. 2. San Diego shall operate the SDMS in an efficient and economical manner, and maintain it in good repair and working order, all in accordance with recognized sound engineering and management practices. 3. San Diego shall comply with all applicable laws, rules and regulations. 4. San Diego shall collect and receive all money paid under this Agreement in connection with the SDMS and disburse all money spent in connection with the SDMS. C. Funding Obligations Nothing in this Section or in this Agreement shall obligate San Diego to make any payment for the acquisition, construction, maintenance or operation of the SDMS from monies derived from taxes or from any income and revenue of San Diego other than monies in, or sewer • Sewage Transportation Agreement _ 6 - National City City of San Diego revenues which go into, the Sewer Revenue fund for the SDMS, and from construction funds derived from the sale of sewer revenue bonds or other sources of sewer funding for the SDMS as are duly authorized. Nothing in this Agreement shall be construed to obligate San Diego to pay from its annual income and revenues any sum that would create an indebtedness, obligation or liability within the meaning of the provision of Section 18 of Article XVI of the Constitution of the State of California or Section 99 of the San Diego City Charter. Nothing in this Section, however, or in this Agreement shall prevent San Diego, in its discretion, from using tax revenues or any other available revenues or funds of San Diego for any purpose for which San Diego is empowered to expend monies under this Agreement. Nothing in this Agreement shall be construed as a limitation upon the powers of the City of San Diego as a Charter City of the State of California. D. Financial Statements 1. San Diego shall keep appropriate records and accounts of all costs and expenses relating to the collection and conveyance of sewage and the acquisition, planning, design, construction, administration, monitoring, and operation and maintenance of the SDMS. Upon written request, said books and records shall be subject to reasonable inspection by any duly authorized representative of the National City at its expense. 2. National City may audit these records for a three fiscal year period previous to its request, at its own expense. 3. San Diego shall make its Comprehensive Annual Financial Report as it relates to the SDMS available to National City. E. Limitations on Tyne and Condition of Sewage 1. National City shall not discharge or allow to be discharged, any sewage or wastes into the SDMS which do not meet the standards established by appropriate San Diego ordinances, resolutions, rules and regulations. National City shall also comply with all applicable statutes, rules and regulations of all agencies of the United States of America, including the Environmental Protection Agency, and all agencies of the State of California Sewage Transportation Agreement _ 7 - National City City of San Diego having jurisdiction over the collection, transmission, treatment and disposal of sewage and other wastes in the SDMS. 2. National City shall not allow, to the extent practicable, excessive inflow and infiltration to be discharged into the SDMS. For purposes of this Section, "excessive" means any amount that causes National City to exceed the limit of peak capacity set forth in Exhibit A. 3. National City shall not allow, to the extent practicable, the discharge of any waste, pollutant, inflow, or infiltration into the SDMS that is prohibited by ordinances, resolutions, rules, or regulations of the United States of America, including the Environmental Protection Agency, the State of California, and San Diego having jurisdiction over the collection, transportation, treatment and disposal of sewage and other wastes in the SDMS. 4. National City shall not discharge any sewage originating outside the boundaries of National City into the SDMS without the prior written consent of San Diego except for sewage from recreational vehicles, motor homes, trailers, or from businesses that pump sewage from private septic systems, that otherwise complies with the requirements of this Agreement. 5. If a regulatory agency with appropriate jurisdiction imposes any penalty or takes other enforcement action related to the transportation of sewage or other matter in or from the SDMS, San Diego shall determine, in active consultation with impacted parties, whether San Diego, National City, or any other authorized agency caused or contributed to such penalty or enforcement action. Based on this determination, San Diego shall allocate the penalty or other relief, including the cost of defense, to the party or parties responsible. Each responsible party, whether San Diego, National City, or another authorized agency, shall pay its share of the penalty or other relief, and any costs of defense as reasonably determined by San Diego in active consultation with impacted parties. If San Diego cannot make an allocation based on responsibility, the cost of the penalty or other relief shall be shared by San Diego, National City, and any other authorized agency involved based proportionately on their respective average daily flow into the SDMS Sewage Transportation Agreement - 8 - National City City of San Diego 6. After consultation with San Diego, National City shall be required to install rock trap screens and odor control devices at sites connecting to the SDMS. San Diego shall request the installation of rock traps in writing and shall allow a minimum of 120 days for installation after the initial request is made. III. CONTRACT CAPACITY RIGHTS A. Amount of Contract Capacity In consideration of the terms and conditions of this Agreement, National City shall have a contractual right to discharge sewage into the SDMS up to the contract capacity described in Exhibit A, provided, however, this shall not confer on National City the right to discharge any substances otherwise prohibited by this Agreement into the SDMS. B. Projected Flow and Capacity Report On or before September 30th of each year during the term of this Agreement and upon the request of San Diego, National City shall provide San Diego with a ten-year projection (by fiscal year) of its average daily flow for dry season, peak flow and capacity requirements in those portions of the SDMS used by National City. The peak flow projection should be based on the ten-year return wet weather flow estimation. If at any time during the ten-year projection National City is projected to exceed its average and/or peak capacity allotted under its contract capacity, National City shall develop and submit a plan of action and an implementation schedule to San Diego for its approval and acceptance. At a minimum, the plan shall describe National City's future needs for contract capacity for the next ten (10) years and if necessary, propose mitigation measures which may be required of National City to facilitate its future needs for capacity including but not limited to increases in capacity through capital improvement projects or taking other measures such as the construction of peak flow retention structures or re- use facilities to reduce National City's flow into the SDMS. In the event that San Diego disagrees with the ten-year projection, the plan of action, or the implementation schedule provided by National City, the parties shall meet in good faith and attempt to reconcile their differences for a period not to exceed six months from the date National City submits its peak flow projection. If the parties fail to reach an agreement after Sewage Transportation Agreement - 9 - National City City of San Diego six months, San Diego may independently develop a notice of determination and proceed with the procedure set forth in Section VIII.B.3. C. Other Planning Information On or before September 30th of each year during the term of this Agreement and upon the request of San Diego, National City shall also provide San Diego with a 50-year projection (by fiscal year) of its average daily flows for dry season in those portions of SDMS used by National City. D. Requests for Additional Contract Capacity If National City desires to purchase additional contract capacity and San Diego is willing to sell additional capacity pursuant to Section IV.B.3, or to create additional contract capacity pursuant to Section VIII.B.3 of this Agreement, National City agrees to pay transportation charges for the additional flow, as well as National City's proportionate share of capital improvement project costs for existing or new SDMS facilities as may be necessary to provide the additional contract capacity. The decision of whether to sell or create additional contract capacity for National City, however, shall be at the sole discretion of San Diego. National City agrees to submit a written request to obtain and purchase the additional capacity needed in accordance with the procedures set forth in Section VIII of this Agreement. E. Transfers of Contract Capacity National City may buy, sell or exchange all or part of its contract capacity to or from San Diego or other authorized agencies on such terms as they may agree upon provided that San Diego shall be notified prior to any transfer. Any transfer shall be first approved in writing by San Diego. No contract capacity may be transferred if San Diego determines, after consultation with National City, that said transfer will unbalance, or will otherwise adversely impact San Diego's ability to operate any SDMS facility or the Metro System. As a ministerial matter, San Diego shall amend Exhibit A from time to time to reflect approved transfers of contract cspneity, and provide National City with an updated exhibit. Sewage Transportation Agreement - 10 - National City City of San Diego 3. In the event that sufficient capacity is available in existing infrastructure, such capacity may be made available to National City, at the discretion of San Diego, upon payment commensurate with the required additional capacity. In addition to the transportation charge for the additional flow, National City shall pay its proportionate share of capital improvement project costs for existing SDMS facilities used by National City under this Agreement, including but not limited to the types described in Section VIII. National City's additional share of capital improvement project costs shall be based upon the relative additional amount of National City's peak capacity as it relates to the design capacity of the respective SDMS facilities according to the following formula: National City's estimated share of capital improvement project costs = (A/B) x C Where: "A" is National City's additional peak capacity; "B" is the design capacity of the SDMS facilities; and "C" is the capital improvement project cost of the SDMS facilities, expressed as the original cost unless the facilities had been rehabilitated, in which case the cost of rehabilitation shall be added to the original cost. In the case of replacement, the replacement cost shall be used in lieu of the original cost for the portion of the facility that has been replaced. . C. No Limitation of Municipal Powers San Diego has sole discretion to determine how to operate the SDMS in a safe, efficient and environmentally sound manner to avoid any risk to the health, safety and welfare of the public. Therefore, nothing in this Agreement shall be construed as precluding or limiting San Diego from taking any action reasonably necessary to prevent flow from National City from endangering the health, safety, or welfare of the residents of the City of San Diego. D. Diversion of Flow 1. Nothing in this Agreement shall preclude National City from diverting all or part of its flow from the SDMS. However, prior to such diversion, National City shall notify Sewage Transportation Agreement - 12 - National City City of San Diego IV. EXCEEDING CAPACITY A. Limitations on Capacity, During the term of this Agreement, National City shall have the right to discharge sewage into the SDMS in an amount not to exceed its contract capacity set forth in Exhibit A. San Diego is not obligated to receive from National City, nor is National City privileged to discharge into the SDMS, any amounts in excess of National City's contract capacity permitted under this Agreement. B. Good -Faith Contract Capacity Discussions 1. The parties recognize that appropriate capacity and long term planning are essential for the proper provision of sewage transportation service. The parties further recognize that it is very difficult to forecast and measure the resulting damage to San Diego and the SDMS if National City exceeds its contract capacity. Therefore, if San Diego notifies National City that it has exceeded its contract capacity, either average capacity or peak capacity as set forth in Exhibit A, at any time during five or more days (from midnight to midnight) in any consecutive 90-day period, National City shall develop and submit a plan of action and an implementation schedule to San Diego for its approval and acceptance. At a minimum, the plan shall describe how National City proposes to stay within its contract capacity or how National City proposes to increase its contract capacity in the SDMS. National City's proposals may include, but are not limited to, increasing available capacity through participation in SDMS capital improvement projects, purchasing or transferring capacity from San Diego or an authorized agency, taking other measures such as the replacement of National City system components experiencing infiltration and inflow and/or construction of peak flow retention structures or re -use facilities to reduce National City's flow into the SDMS. 2. In the event that National City fails to submit the aforementioned plan of action and implementation schedule within six (6) months of the date National City is notified by San Diego, or if San Diego reasonably determines that the submitted plan and schedule are insufficient or untimely to adequately address the matter, San Diego shall independently develop a notice of determination pursuant to Section VIII.13.3. Sewage Transportation Agreement - 11 - National City City of San Diego San Diego in writing at least six (6) months in advance and enter into an agreement with San Diego that, at a minimum, will require National City to pay its proportionate share of outstanding capital improvement project costs, if payment of such outstanding costs upon diversion of flow is not already addressed by separate agreement pursuant to Sections VIILB.2.c or VIII.B.3.c. National City will also be responsible for all transportation charges owed by National City up to the time of diversion. 2. In no event shall National City's diversion of all or part of its flow from the SDMS entitle National City to any refund of previously remitted payments for capital improvement project costs, or forgiveness of amounts owed, if any, to San Diego for existing or increased contract capacity. National City shall, however, retain such contract capacity and may transfer such capacity rights to another authorized agency, subject to San Diego's approval. National City's contract capacity may be reduced or eliminated by future capital improvement projects: a. If a capital improvement project replaces a facility in which National City has contract capacity, National City's contract capacity is extinguished. b. If a capital improvement project rehabilitates a facility in which National City has contract capacity, National City's contract capacity is reduced in proportion to the amount that the capital improvement project cost, when added to the original cost of the facility, reduces National City's proportionate share of the total cost of the facility. E. Fines and Penalties National City shall be responsible for the violation of any applicable Iaws, rules, or regulations associated with its discharge of flow into the SDMS. In the event a regulatory agency imposes any penalty or takes other enforcement action relating to the conveyance of flow through a SDMS facility listed in Exhibit B, San Diego shall determine whether itself or an authorized agency or agencies caused or contributed to such penalty or enforcement actions. San Diego shall allocate the penalty or other relied including the costs of defense, to the authorized agency or agencies responsible. Each responsible party, whether an authorized agency or San Diego, shall be obligated to pay its share of such penalty or other relief, and any costs of defense. Sewage Transportation Agreement - 13 - National City City of San Diego In the event that San Diego cannot make such an allocation, the cost of such penalty or other relief shall be shared by all authorized agencies, including San Diego, using the SDMS facility proportionately based on the amount of flow. V. MONITORING A. Flow Monitoring Devices 1. In most cases, flow monitoring devices are already installed and paid for through the Regional Wastewater Disposal Agreement. 2. If San Diego and/or National City determine that additional flow monitoring devices are needed beyond any Metro System flow monitoring devices, San Diego shall own and operate the flow monitoring devices as part of the Metro System monitoring devices and allocate costs as identified in the Regional Wastewater Disposal Agreement.. B. Equipment Maintenance San Diego shall operate, maintain, manage and controlthe flow monitoring device(s) in an efficient and economical manner and preserve them in good repair and working order, all in accordance with recognized and sound engineering practices. San Diego shall provide flow reports to National City on a regular basis but not less frequently than quarterly. Upon written request, San Diego shall provide National City with the record of the field calibration for any meters in question. National City shall have access to the electronic files. C. Unmonitored Flows Where the transported sewage is not monitored, San Diego and National City shall mutually agree upon the estimated amount of flow generated from such service areas. If such an agreement cannot be made, the dispute shall be resolved pursuant to the dispute resolution procedure set forth in Section XI of this Agreement. National City shall keep current and accurate records of the number and types of structures for evaluation of gallons per day for flow into the SDMS lines. Such records shall be made available for San Diego upon written request. Sewage Transportation Agreement - 14 - National City City of San Diego VI. TRANSPORTATION CHARGES A. Transportation Charge 1. San Diego shall charge and National City shall pay a transportation charge at the unit transportation rate, set forth in Exhibit C, per million gallons of flow for each mile such flow is transported in the SDMS. As a ministerial matter, this rate shall be adjusted annually for inflation in accordance with the State of California Economic Forecast Index for the most recent year ending December 31. Revised rates shall take effect July 1 of the following year. In no event will the rate be adjusted more frequently than once each fiscal year. 2. The unit transportation rate will be reviewed by San Diego every five (5) years, commencing from the date of its finalization, to ensure that it does not deviate substantially from actual costs incurred by the Metropolitan Wastewater Department for operation and maintenance of the SDMS utilized by National City. San Diego will adjust the unit transportation rate in accordance with either of the following methods: a. San Diego will determine the average of the actual costs for the previous three (3) years, based on the formula and calculations used to devise the current transportation rate. If the average actual costs for the three-year period would have resulted in a transportation rate that is more than five percent (5%) less than or greater than the transportation rate being applied at the time of the analysis, the rate will be adjusted to an amount equal to the three-year average of actual expenses on the next scheduled increase date. b. San Diego may conduct or procure, at its sole cost and expense, a cost of service study to determine the appropriate unit transportation rate. The unit transportation rate shall be adjusted in accordance with the results of the study on the next scheduled increase date. If National City objects to the adjustment recommended by the study, the matter shall be resolved pursuant to the dispute resolution procedure set forth in Section XI of this Agreement. Sewage Transportation Agreement - 15 - National City City of San Diego 3. Notwithstanding the above, San Diego may adjust the unit transportation rate at any time if a change in federal, state, or local laws or regulations, a court order, or an order from a regulatory agency materially affects the cost of providing sewage transportation service. In consultation with National City, San Diego will adjust the unit transportation rate to reflect the actual cost to San Diego, effective the beginning of the next billing period. If National City objects to the adjustment determined by San Diego, the matter shall be resolved pursuant to the dispute resolution procedure set forth in Section XI of this Agreement. 4. As a ministerial matter, and provided it has followed the procedures set forth herein, including any dispute resolution procedure, San Diego shall amend Exhibit C from time to time to reflect adjustments to the unit transportation rate, and provide National City with an updated exhibit. B. Billing San Diego shall bill National City on a quarterly basis for transportation charges no later than ninety (90) days after the end of the quarter to which the billing applies. Payment shall be made by National City to San Diego within thirty (30) days of receipt of the billing and shall be considered delinquent fifteen (15) days thereafter. Late payments shall accrue interest at a rate of ten (10) percent per annum. C. Payment Disputes No payment shall be withheld by National City because of a dispute as to its amount. Disputed payment shall be made with a notation as to the portion in dispute. Payment disputes shall be resolved pursuant to the dispute resolution procedure set forth in Section XI of this Agreement. Any amount determined to have been improperly allocated to National City resulting in an overpayment shall be adjusted by San Diego as a credit to the next invoice following such determination, and shall accrue interest at a rate of ten (10) percent per annum, calculated from the date paid by the National City. In the event that the improper allocation to National City resulted in an underpayment, such amount shall be adjusted by San Diego as a debit to the next invoice following such determination. Sewage Transportation Agreement - 16 - National City City of San Diego VII. OPERATION AND MAINTENANCE CHARGES FOR MUNICIPAL PUMP STATIONS This section does not apply to National City. VIII. CAPITAL IMPROVEMENT PROJECTS A. Planning 1. In accordance with Section III Paragraph B and C of this Agreement, National City shall provide San Diego with the projections (by fiscal year) of its flows and contract capacity requirements in those portions of the SDMS used by National City. National City shall also advise San Diego of any plans to acquire capacity outside the SDMS. This "Projected Flow Capacity Report" shall be updated annually. National City shall also provide San Diego with such additional information requested by San Diego as necessary for SDMS planning purposes. 2. San Diego shall prepare a Ten Year Municipal Capital Improvement Plan for the SDMS that describes facilities necessary to convey all flows in compliance with applicable rules, laws and regulations. These Plans shall be updated annually. San Diego shall solicit and consider, in good faith, comments from National City on the Capital Improvement Plan for those portions of the SDMS in which National City has contract capacity or National City is negotiating additional contract capacity. B. Capital Improvement Projects 1. National City and San Diego are obligated to pay for capital improvement projects for the SDMS that are needed to maintain existing contract capacity or to provide new contract capacity under the terms below, provided, however, that the decision whether or not to construct a capital improvement project shall be at the sole discretion of San Diego. As a ministerial matter, and provided San Diego has proceeded in the manner set forth in this Section VIII, and the dispute resolution process found in Section XI, herein, San Diego shall amend Exhibit B from time to time to reflect future capital improvement projects in the list of SDMS facilities used by National City, and provide National City with an updated exhibit. Sewage Transportation Agreement - 17 - National City City of San Diego 2. Maintenance of Existing Contract Capacity a. As part of its planning efforts and the needs of the SDMS, and considering the planning information provided to San Diego by National City, San Diego shall determine when capital improvement projects will be necessary to maintain National City's existing contract capacity and the efficiency of the SDMS. San Diego's determination shall be made following active and meaningful consultation between San Diego and National City. This determination shall be based on: (1) the type and location of any capital improvement projects necessary; (2) the projected costs of any necessary capital improvement projects; and (3) the allocation of the cost of any such capital improvement projects to National City and San Diego calculated pursuant to Section IX.B. San Diego shall then prepare a notice of determination setting forth its conclusions and send said notice of determination to National City. b. National City shall have six (6) months from the date of the notice of determination within which to either: (1) comment on or challenge all or part of San Diego's determination; (2) agree to the determination; or (3) commit, in writing, to obtain new sewage transportation services outside of the SDMS as described below. If National City objects to San Diego's determination, National City shall have the burden to commence and diligently pursue the formal dispute resolution procedures of Section XI of this Agreement. If National City fails to initiate dispute resolution within ninety (90) days after the expiration of the time to respond to the notice of determination set forth herein, San Diego's determination shall become final and binding on National City, and National City agrees to pay the capital improvement project costs and transportation charge set forth therein. c. If San Diego and National City agree on the capital improvement projects necessary to maintain existing contract capacity, San Diego and National City shall enter into an agreement specifying the terms and conditions pursuant to which the capital improvement projects shall be undertaken. The Agreement shall provide that National City shall reimburse San Diego for its proportionate share of any capital improvement project costs accruing to National City to maintain existing contract capacity. Sewage Transportation Agreement 18 - National City City of San Diego 3. Capital Improvement Projects to Provide Additional Contract Capacity a. San Diego shall also, as part of its planning efforts, and considering planning information provided to San Diego by National City, determine the adequacy of National City's contract capacity or consider requests for additional contract capacity by National City. San Diego's determination shall be made following active and meaningful consultation with National City. If San Diego determines that National City requires additional contract capacity or agrees that it is able to provide additional contract capacity as requested by National City, San Diego shall conduct a study to determine the following: (1) the amount of additional contract capacity needed or which may be provided; (2) the type and location of any capital improvement projects necessary to provide additional contract capacity; (3) the projected costs of any necessary capital improvement projects; and (4) the allocation of the cost of any such capital improvement projects calculated pursuant to Section IX.B. San Diego shall then prepare a notice of determination setting forth its conclusions and send said notice of determination to National City. b. National City shall have six (6) months from the dare of a notice of determination within which to either: (1) comment on or challenge all or part of San Diego's determination, (2) agree to the determination or (3) to commit, in writing, to obtain new sewage transportation services outside of the SDMS as described below; however, if San Diego's notice of detennination was issued in response to National City's plan of action and implementation schedule set forth in Section IV.B., National City shall respond within sixty (60) days of the date of the notice of determination. If National City objects to San Diego's determination, National City shall have the burden to commence and diligently pursue the dispute resolution procedures of Section XI of this Agreement. If National City fails to initiate dispute resolution within ninety (90) days after the expiration of the time to respond to the notice of determination set forth herein, San Diego's determination shall become final and binding on National City, and National City agrees to pay the capital improvement project costs and transportation charge set forth therein. c. If San Diego and National City agree on the capital improvement projects necessary to increase contract capacity, San Diego and National City shall enter into an Sewage Transportation Agreement - 19 - National City City of San Diego agreement specifying the terms and conditions pursuant to which the capital improvement projects shall be undertaken. The Agreement shall provide that National City shall reimburse San Diego for its proportionate share of any capital improvement project costs accruing to National City to increase contract capacity. C. Option to Divert Flow Notwithstanding the foregoing, upon notice of San Diego's determination regarding additional capacity National City may choose, at its sole discretion, to divert all or part of its flow from the SDMS pursuant to Section IV.D. IX. CAPITAL IMPROVEMENT CHARGES A Charges for Existing Facilities 1. The Parties agree that National City's equitable share of the capital improvement project costs of the Valencia Park Trunk Sewer which is used by National City for the transportation of its sewage in the SDMS and which have not been paid to San Diego is $467,150. 2. A lump sum payment by National City shall be made to San Diego within thirty (30) days of receipt of the billing and shall be considered delinquent fifteen (15) days, thereafter. B. Calculation of Capital Improvement Project Costs for Future Facilities In addition to the transportation charge, National City shall pay its proportionate share of capital improvement project costs for SDMS facilities constructed in the future for, or used by, National City under this Agreement including but not limited to the types described in Section VIII. Capital improvement projects, their estimated costs, and the proportionate share of expenses for National City shall be included as addendum to this Agreement as they are initiated. Final, actual costs shall be. used for billing National City. National City's share of future capital improvement project costs shall be based upon the relative amount of National Sewage Transportation Agreement - 20 - National City City of San Diego City's peak capacity as described in Exhibit A and as it relates to the design capacity of the respective SDMS facilities according to the following formulas: Where: "A" is National City's peak capacity; "B" is the design capacity of the SDMS facility; "C" is the estimated capital improvement project cost of the SDMS facility constructed for or used by National City; "D" is the remaining useful life of the existing SDMS facility; and "E" is the estimated useful life of the new SDMS facility. 1. For new SDMS facilities, or for repair, rehabilitation, or replacement of SDMS facilities that have reached the end of their useful life, or if replacement of SDMS facilities is needed to increase the design capacity because of an increase in flow from both National City and San Diego, National City's estimated share of capital improvement project costs = (A/B) x C. 2. For replacement of SDMS facilities that have not reached the end of their useful life, to increase the design capacity, due solely to an increase in flow from San Diego and/or other involved agencies, National City's estimated share of capital improvement project costs = (A/B) x C x ((E D)/E). 3. For replacement of SDMS facilities that have not reached the end of their useful life, to increase the design capacity, due solely to an increase in flow from National City, National City's estimated share of capital improvement project costs = C - [((B — A)/B) x C x ((E-D)/E)]. C. Billing San Diego shall bill National City for its share of capital improvement costs as described above. Billings for design and subsequent project costs shall be issued immediately following the City's remittance for payment of same. The billings shall be in an amount equal to Sewage Transportation Agreement - 21 - National City City of San Diego National City's share of the amount expended on the capital improvement project during the relevant invoice period based on the formula described above. Payment shall be made within thirty (30) days of receipt of the billing and shall be considered delinquent fifteen (15) days thereafter. Late payments shall accrue interest at ten (10) percent per annum. No payment shall be withheld by National City because of a dispute as to its amount. Disputed payments shall be made with a notation as to the portion in dispute. Payment disputes shall be resolved pursuant to the dispute resolution procedure set forth in Section XI of this Agreement. Any amount determined to have been improperly allocated to National City shall be issued to the National City as a refund plus ten (10) percent interest calculated per annum from the date the disputed payment was made by National City within thirty days following such determination. X. NON -ASSIGNMENT National City shall not assign this Agreement, or any part of it, nor any monies due, or to become due hereunder, without the prior written consent of San Diego. Any assignment by National City without the express written approval of San Diego shall be cause for termination of this Agreement at the sole option of San Diego. Inino event shall any contractual relationship be created by any third party and San Diego. XL DISPUTE RESOLUTION This Section shall govern all disputes arising out of this Agreement. A. Voluntary Mediation 1. Upon delivery of a written request for mediation to the other party involved, any dispute concerning this Agreement may be submitted to a mutually acceptable mediator. The decision of the mediator shall not be final or binding unless otherwise agreed to in wrking _by the parties. Mediationshall lzc muirediltiomeither party_may Proceed to litigation or any other method of dispute resolution. If a mediation session has not been held within ninety (90) days after written request for mediation has been received by either party, the party requesting mediation may proceed to litigation unless the period for mediation has been extended by mutual written agreement between the parties. Costs for mediation shall be shared equally between parties. Sewage Transportation Agreement - 22 - National City City of San Diego 2. All mediation proceedings, results and documentation, shall be non- binding and inadmissible for any purpose in any legal proceeding (pursuant to California Evidence Code Sections 1115 through 1128), unless such admission is otherwise agreed upon in writing by both parties. Mediators shall not be subject to any subpoena or liability, and their actions shall not be subject to discovery. B. Performance Required During Dispute Nothing in this Section shall relieve either San Diego or National City from, its obligation to perform all of their obligations under this Agreement. San Diego and National City shall be required to comply with this Agreement, including the performance of all disputed activity and disputed payments, pending the resolution of any dispute under this Agreement. XII. INSURANCE A. San Diego Shall Maintain All Required Insurance 1. San Diego shall maintain all insurance required by law, including workers' compensation insurance associated with the operation of the SDMS. San Diego is currently self -insured for Workers Compensation for all. San Diego employees. 2. San Diego is currently self -insured for its public liability insurance, which includes general liability and automobile liability coverage for property damage and bodily injury claims. San Diego budgets annually for its self-administeredclaims program handled. through the Risk Management Department. Claims are processed and administered in accordance with the California Government Code Sections 900 et seq. B. Substantially Equivalent Coverage If the SDMS'is transferred to another en -'Ty pint to Sectimullomverage substantially equivalent to all the above provisions shall be maintained by any successor in interest. Sewage Transportation Agreement 23 - National City City of San Diego XIII. INTERRUPTION OF SERVICE If the. sewage transportation services provided to National City under this Agreement are interrupted as a result of a major disaster, operation of federal or state law, or other causes beyond the control of San Diego, National City shall continue all payments required under this Agreement during the period of interruption. Following the resumption of sewage transportation services, San Diego and National City shall determine whether National City is entitled to any refund of transportation charges paid during the period of interruption. If the parties are unable to reach an agreement following good faith negotiations, National City may seek a refund through the dispute resolution process set forth in Section XI, above. XIV. JURISDICTION This Agreement is intended to be construed pursuant to thelaws of the State of California: In addition, parties agree that this Agreement has been entered into in San Diego County and concerns subject matter located in San Diego County. XV. NOTICES REQUIRED UNDER AGREEMENT All notices required to be given under this Agreement must be in writing and either served personally or mailed by certified mail, return receipt requested to: City of National City Joe Smith, Public Works Director 1243 National City Boulevard National City, CA 91950 City of San Diego Jim Barrett, Director of Public Utilities San Diego Metropolitan Wastewater Department 9192 Topaz Way San Diego, CA 92123 Sewage Transportation Agreement -. 24 - National City City of San Diego XVI. EttECTIVE DATE AND TERMINATION A. Effective Date This Agreement shall become effective thirty days after execution by San Diego and National City. B. Term of Agreement Subject to the rights and obligations set forth in Sections XVI.C, XVI.D and XVI.E below, this Agreement shall expire on December 31, 2050 or upon the expiration or termination of the Regional Wastewater Disposal Agreement, whichever occurs first. Any outstanding obligation of National City to pay its proportionate share of capital improvement project costs shall survive termination of this Agreement prior to December 31, 2050. C. Extension of Agreement This Agreement is subject to extension by agreement of the parties. The parties shall commence discussions on an agreement to provide sewage transportation services beyond the year 2050 on or before December 31, 2040. D. Contract Termination If in the future, National City is able to obtain alternate sewage transportation services, National City may divert all of its flow from the SDMS pursuant to Section IV.D. E. Abandonment San Diego may abandon the SDMS upon delivery of notice to National City ten (10) years in advance of said abandonment. Upon notice by San Diego to abandon the SDMS, it ie parties shall meet and -confer over the nature and conditions of such abandonment In -the event the parties cannot reachagreement, the matter shall be resolved pursuant to the dispute resolution procedure set forth in Section XI of this Agreement. In the event of abandonment, San Diego shall retain ownership of all SDMS assets free from any claim of National City. Sewage Transportation Agreement 25 - National City City of San Diego XVII. WAIVER OF BREACH No failure of either San Diego or National City to insist upon strict performance by the other of any covenant, agreement, term or condition of this Agreement, or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such covenant, agreement, term or condition. No waiver of any breach shall affect or alter this Agreement, but each and every covenant, condition, agreement and term of the Agreement shall continue in full force and effect without respect to any other then existing or subsequent breach. XVIII. GENERAL A. Exhibits This Agreement references certain exhibits. Each exhibit is attached to this Agreement,and is also incorporated herein by reference. The exhibits are as follows: Exhibit A Contract Capacity Exhibit B Facilities Used by National City Exhibit C Unit Transportation Rate B. Amendment of Agreement Except as provided in this Agreement, and recognizing that this Agreement establishes certain changes as ministerial, including but not necessarily limited to the provisions. of Sections lit E (Transfers of Contract Capacity), VI A (Transportation Charge), and VIII.B 1 (Capital Improvement Projects, Exhibit B), this Agreement may be amended or supplemented only by a mutual agreement in writing between San Diego and National City stating the parties' intent_ to_amend or supplement the_Agreenient C. Construction of Agreement 1. Drafting of Agreement Sewage Transportation Agreement _ 26 - National City City of San Diego • It is acknowledged that San Diego and National City, with the assistance of competent counsel, have participated in the negotiation of this Agreement and that any ambiguity should not be construed for or against either San Diego or National City. 2. Entire Agreement; No Third Party Beneficiaries San Diego and National City represent, warrant and agree that no promise or agreement not expressed herein has been made to them, that this Agreement contains the entire agreement between the parties, that this Agreement supersedes any and all prior agreements or understandings between the parties unless otherwise provided herein including but not limited to the provisions of Section XVIII B of this Agreement, and that the terms of this Agreement are contractual and not a mere recital; thatin executing this Agreement, neither party is relying on any statement or representation made by the other party, or the other parry's representatives concerning the subject matter, basis or effect of this Agreement other than as set forth herein; and that each party is relying solely on its own judgment and knowledge. This Agreement does not confer any rights on any person who is not a party to this Agreement, and any third party beneficiaries are hereby expressly disclaimed. 3. Agreement Binding on All This Agreement shall be binding upon and shall inure to the benefit of both San Diego and National City, and each of its respective successors, assigns, trustees or receivers. 4. Severability Should any provision of this Agreement be held invalid or illegal, such invalidity or illegality shall not invalidate the whole of this Agreement, but, rather, the Agreement shall be construed as ifit didnotcontain-theinvaiid or illegal provision, and the rights and obligations of the parties shall be construed and enforced accordingly. Sewage Transportation Agreement - 27 - National City: City of San Diego 5. Headings All Section headings are for convenience only and shall not affect the interpretation of this Agreement. D. Declarations 1. Understanding of Intent and Effect of Agreement The parties expressly declare and represent that they have read the Agreement and that they have consulted with their respective counsel regarding the meaning of the terms and conditions contained herein. The parties further expressly declare and represent that they fully understand the content and effect of this Agreement and they approve and accept the terms and conditions contained herein, and that this Agreement is executed freely and voluntarily. 2 Warranty Regarding Obligation and Authority to Enter Into This Agreement Each party represents and warrants that its respective obligations herein are legal and binding obligations of such party, that, each party is fully authorized to enter into this Agreement, and that the person signing this Agreement hereinafter for each party has been duly authorized to sign this Agreement on behalf of said party. Restrictions on Veto of Transfers and Acquisitions of Capacity National City understands and specifically recognizes that with respect to transfer and acquisition of capacity in the SDMS or the creation of additional capacity in the SDMS. for any other authorized agency, National City does not have the right to veto or prevent the transfer of capacity by and among other agencies or with San Diego, or to veto or prevent the creation or acquisition of capacity for another authorized agency or agencies. National City recognizes that by signing this Agreement National City has expressly pre -approved such actions. The sole right of National City to object to any of the foregoing shall be through expression of its opinion to San Diego and, where applicable, through exercise of its rights under the dispute resolution provisions of this Agreement. Sewage Transportation Agreement - 28- National City City of San Diego • 4 Other Agreements a. Nothing in this Agreement limits or restricts the right of San Diego or National City to make separate agreements with other agencies without the need to amend this Agreement, provided that such agreements are consistent with this Agreement. b. This Agreement is not intended to nor shall it in any way supersede or modify the terms and conditions of the Regional Wastewater Disposal Agreement or any amendments thereto. 5. Counterparts This Agreement may be executed in counterparts. This Agreement shall become effective as specified in Section XVI. The counterparts so executed shall constitute one Agreement notwithstanding that the signatures of all parties do not appear on the same page. 6. Annexation of Agency Area to the City of San Diego a. In the event that all or part of the area served. by National City is annexed into San Diego, this Agreement shall be null and void with respect to the annexed territory. National City's obligations to pay transportation charges or capital improvement project costs associated with that annexed area shall cease after the date of annexation. b. For purposes of determining the date of cessation of these costs, the date of annexation shall be the effective date as determined by LAFCO. c. Notwithstanding the effect of the above provisions, nothing in this Section shall be construed as relieving National City of any obligations concerning bond indebtedness that was incurred by National City prior to the annexation, except to the extent that tire obligation involves San Diego and National -City prior to annexation,-in-whichcase TSan Diego shall become responsible for that portion of National City's obligation to the extent that the obligation was incurred for the annexed area, if obligations for bond indebtedness are calculated based on geographical size, acreage, or connections. Sewage Transportation Agreement _ 29 - National City City of San Diego DUPLICATE °RIG NAL IN WITNESS WHEREOF, this Agreement is executed b yr the City of San Diego, acting by and through its Mayor or his/her designee, pursuant taetutian No. authorizing such execution, and by National City ; CITY OF TIONAL CITY By: .yor Name: Ron Morrison Date: April 7, 2009 APPROVED AS'PO FORM: By: City Aftorney Name: George H. Eiser, III Date: April 7, 2009 CITY OF SAN DIEGO By: C 1� W. Downs Prior Principal Contract Specialist Purchasing & Contracting Date: ek/6 I HEREBY APPROVE the form and 1 ty of the forego' A ent this y of L , 2009. Jan I. Goldsmit , City Attorney Sewage Transportation Agreement -30- National City City of San Diego 98'79 EXHIBIT A CONTRACT CAPACITY CHULA VISTA SDMS Facility II Municipal Facility tl app Average Capacity (mpjl) Peak Contract Capacity (mph) (TS 92) OTAY VALLEY TRUNK SEWER 79% 0.06 0.91 Overall: N/A 0.91 CORONADOI SDMS Facility Municipal Facility Usage Average Capacity (mgd) Peak Contract Capacity (mgd) (TS 118) SOUTH PACIFIC HIGHWAY TRUNK SEWER 100% 2.38 9.07 Overall : 2.38 9.07 ' Coronado used (TS 80) Kenner Boulevard Trunk Sewer 100% to transport their flow prior to 2004. From 2004 to present, Coronado uses TS 118. Based on the model simulation, Coronado's flow will split between TS 80 & TS 118 once it increases above 9.8 mgd. DEL MAR2 j SDMS Facility Municipal Facility Usage Average Capacity (mgd) Peak Contract Capacity (mgd) I gal (TS 44) DEL MAR HEIGHTS TRUNK SEWER 10% 0.64 1.84 (TS 47) CARMEL VALLEY TRUNK SEWER 9% 0.64 1.84 (PS65) PUMP STATION 65 100% 0.64 1.84 (PS64) PUMP STATION 64 100% 0.64 1.84 (TS 2B) ROSE CANYON TRUNK SEWER (NEW) 100% 0.51 1.47 (TS 50) ROSE CANYON PARALLEL TRUNK SEWER 82% 0.13 0.37 (TS 114) MORENA BLVD INTERCEPTOR 100% 0.64 1.84 Overall : 0.64 1.84 2 Del Mar used (TS 2A) Rose Canyon Trunk Sewer (Old) & (TS 4) East 'scission Bay Trunk Sewer to transport their flow prior to 1993. Prom 1993 to present, Del Mar uses TS 2B, TS 50 & TS 114. EAST OTAY_MERA3_ 3 The contract for East Otay Mesa Sewer Sanitation District will be negotiated separately. 1of4 -SDMS Facility Municipal Facility Usage Average Capacity (mgd) Peak Contract Capacity (mgd) (TS 23) SOUTH CHOLLAS VALLEY TRUNK SEWER 100% 0.41 1.06 (TS 27) JAMACHA ROAD TRUNK SEWER 100% 1.73 8.75 (TS 22) ENCANTO TRUNK SEWER 100% 2.14 9.81 [TS 13) HARBOR DRIVE TRUNK SEWER 120/ 2.14 9.81 Overall : 2.14 9.81 NATIONAL CITY i SDMS Facility Municipal Facility Usage Average Capacity (mgd) Peak Contract Capacity (mgd) (TS 24) VALENCIA PARK TRUNK SEWER 77% 0.85 .1.82 (TS 13) HARBOR DRIVE TRUNK SEWER 6% 0.85 1.82 (TS 77) SOUTH BAY TERRACES 18% 0.49 . 1.14 (TS 76) PARADISE HILLS TRUNK SEWER 86% 0.03 0.11 Overall : 137 3.07 PADRE D SDMS Facility Municipal Facility Usage Average Capacity (mgd) Peak Contract Capacity (mgd) EAST MISSION GORGE INTERCEPTOR 100% 3.45 13.67 (EMGPS)EAST MISSION GORGE PUMP STATION 100% 3.45 13.67 (TS 33) MISSION GORGE TRUNK SEWER 100% 3.45 13.67 (TS 5) NORTH MISSION VALLEY TRUNK SEWER 100% 3.45 13.67 Overall : 3.45 13.67 SDMS Facility Municipal Facility Usage Average Capacity (mgd) Peak Contract Capacity (mgd) (TS 38) EAST BERNARDO TRUNK SEWER _ 42% 0.05 0.14 (TS 48) PENASQUITOS TRUNK SEWER 16% 3.93 9.03 PENASQUITOS RELIEF 100% 3.93 9.03 (PAPS) PENASQUITOS PUMP STATION 100% 3.93 9.03 (TS 2B) ROSE CANYON TRUNK SEWER (NEW) 100% 3.14 7.22 (TS 50) ROSE CANYON PARALLEL TRUNK SEWER 82% 0 79 1.81 (TS 114) MORENA BLVD INTERCEPTOR 100% 3.93 9.03 Overall : 3.98 9.16 4 Poway used (TS 2A). Rose Canyon Trunk Sewer (Old) & (TS 4) East Mission Trunk. Sewer to transport their flow prior to 1993. From 1993 to present, Poway uses TS 2B, TS 50 & TS 114. 3 of4 SDMS Facility Municipal Facility Usage Average Capacity (mgd) Peak Contract Capacity (mgd) EAST MISSION GORGE INTERCEPTOR 100% 0.97 2.18 (EMGPS) EAST MISSION GORGE PUMP STATION 100% 0.97 2.18 (TS 33) MISSION GORGE TRUNK SEWER 100% 0.97 2.18 (TS 5) NORTH MISSION VALLEY TRUNK SEWER 100% 0.97 2.18 Overall : 0.97 2.18 NOTE: Metro facilities, non -city sewer lines, and agencies (Otay Water District and Spring Valley) that do not use SDMS facilities are excluded from this exhibit. 4 of4 011 Pi SOUTH METRO INTERCEPTOR HARBOR DRIVE TRUNK SEWER (SDMS Facility) SOUTH METRO INTERCEPTOR SPRING VALLEY SANITATION DISTRICT TRUNK SEWER Date Printed : 10•24-00 J Richards J:113RCUPS%AD$\Transportation Agreement MepelNetionel City t INFRASTRUCTURES SHOWN IN BLACK ARE THE PORTIONS OF THE SDMS FACILITIES CITY OF SAN.`IEGO USED BY NATIONAL CITY PUMP STATION 1 FORCE MAIN PUMP STATION 1 NATIONAL CITY PARADISE HILLS TRUNK SEWER (SDMS Facility) CHULA VISTA EXHIBIT B FACILITIES USED BY NATIONAL CITY SEWAGE TRANSPORTATION AGREEMENT VALENCIA PARK TRUNK SEWER (SDMS Facility) SOUTH BAY TERRACES TRUNK SEWER (SDMS Facility) A P . OMW* en Ono F. v. w. City of Sen Dirge {Valor Iloparinlrvlt EXHIBIT C UNIT TRANSPORTATION RATE I. Computation Methodology: The Transportation Rate is based on 0 & M costs associated with the use of the conveyance systems and billing units in terms of Million Gallons -Miles (MG -Mile). O&M Costs are apportioned between small diameter pipes (SDP) defined as less than eighteen inches and large diameter pipes (LDP) defined as equal to or greater than eighteen inches based on the costs to service large diameter pipes. This method provides information on the amount of flow, the individual lines utilized for transport, and the total mileage usedin the municipal system. H. Base Transportation Rate: IPipe Diameter Unit cost Agency Billing Units MG -miles Length. miles O&M Cost Slmg -mile Billing Units, Cost MG - miles es <18" 329,722 2,538 . $52,790,764 $160.11 2,255 $361,041 >18" 1,407,607 281 $4,612,328 $3.28 469,428 $1,538,182 Total 1,737,329 2,819 $57,403,092 471,683 $1,899,223 Rate $/mg -mile S0.77 $3.26 $4.03 III. Transportation Rate effective July I, 2008 through June 30, 2009 is $4.161 ' The base transportation rate adjusted by the average inflation rate for California in 2007 of 3.2% per the State of California Economic Forecast Index. RESOLUTION NO. 2009 — 65 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SEWER TRANSPORTATION AGREEMENT BETWEEN THE CITY OF SAN DIEGO AND THE CITY OF NATIONAL CITY AS ONE OF THE PARTICIPATING AGENCIES IN THE SAN DIEGO METROPOLITAN WASTEWATER SYSTEM WHEREAS, the City of San Diego owns and operates the Metropolitan Sewer System ("Sewage System") for the purpose of treating and disposing of sewage for San Diego and other municipalities within the San Diego region, including National City as a participating agency; and WHEREAS, the proposed Agreement allows National City to discharge sewage into the Sewage System for transportation to the Point Loma treatment plant for treatment and disposal, and establishes the rate to be charged for said sewer transportation, National City's contract capacity in the Sewage System, and the method to allocate capital improvement project costs for future improvements, repairs, rehabilitation, or replacements to the Sewage System. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute a Sewer Transportation Agreement between the City of San Diego and the City of National City as one of the participating agencies in the San Diego Metropolitan Wastewater System. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 7th day of April, 2009. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Passed and adopted by the Council of the City of National City, California, on April 7, 2009 by the following vote, to -wit: Ayes: Councilmembers Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California 'Q2j City erk of the City of ational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2009-65 of the City of National City, California, passed and adopted by the Council of said City on April 7, 2009. City Clerk of the City of National City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE April 07, 2009 AGENDA ITEM NO. 8 IITEM TITLE Resolution of the City Council authorizing the Mayor to execute an updated Sewer Transportation / Agreement between the City of San Diego and National City as one of the Participating Agencies in the Metropolitan Wastewater System. This updated agreement is for the transportation of National City's sewage to San Diego's Point Loma treatment plant for treatment and disposal. (This agreement has no financial impact at this time and any future cost will be funded by Sewer Service Fees) PREPARED BY Joe Smith, Director DEPARTMENT Public Works (Ext. 4587) EXPLANATION The City of San Diego owns and operates the Metropolitan Sewer System for the purpose of treating and disposing of sewage for San Diego and other municipalities within the San Diego region, including National City as a Participating Agency. National City and San Diego's previous Agreement expired on June 30, 1984. The purpose of this new Agreement allows National City to discharge sewage into the San Diego Municipal Sewerage System for transportation to the Point Loma treatment plant for treatment and disposal. This Agreement will also establish the rate to be charged for sewer transportation service, National City's contract capacity in the San Diego Municipal Sewerage System, and the method to allocate capital improvement project costs for future improvements, repairs, rehabilitation, or replacements to the San Diego Municipal Sewerage System. The City of San Diego and the Participating Agencies using the San Diego Municipal Sewerage System have been in negotiations for many months to develop a new Agreement for future sewer -related issues. The attached document, the "Sewer Transportation Agreement", which will supersede the 1984 agreement, is presented for your consideration and annroval. Environmental Review J N/A Financial Statement Approved By: Finance Director Any future costs that may be associated with this agreement will be funded by sewer service fees and first brought to Council for approval. Account No. N/A STAFF RECOMMENDATION Approve the Resolution authorizing the Mayor to execute the Sewer Transportation Agreement. BOARD I COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. - Resolution Sewer Transportation Agreement A-200 (9/99) City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 April 13, 2009 Mr. Jim Barrett Director of Public Utilities City of San Diego San Diego Metropolitan Wastewater Department 9192 Topaz Way San Diego, CA 92123 Dear Mr. Barrett, On April 7th, 2009, Resolution No. 2009-65 was passed and adopted by the City Council of the City of National City, authorizing execution of a Sewer Transportation Agreement with the City of San Diego. We are enclosing for your records a certified copy of the above Resolution and four partially executed original agreements. Please return one fully executed original agreement to us for our files. Michael R. Dalla, CMC City Clerk Enclosures cc: Public Works Dept. 0 6: Recycled Paper