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HomeMy WebLinkAbout09 - East Orange County Feeder #2September 12, 2000 CITY COUNCIL AGENDA ITEM NO. 9 TO: Mayor and Members of the City Council FROM: Public Works Department SUBJECT: APPROVAL OF TRANSFER OF CAPACITY AGREEMENT FOR THE EAST ORANGE COUNTY FEEDER NO. 2 RECOMMENDATION: Approve transfer of capacity agreement and authorize Mayor and City Clerk to execute agreement. DISCUSSION: In January 2001, the Coastal Municipal Water District (CMWD) will be consolidated with the Municipal Water District of Orange County (MWDOC). As part of the CMWD consolidation with the MWDOC, the CMWD is assigning its 10 cubic feet per second :(CFS) capacity rights in the East Orange County Feeder No. 2 (EOCF #2) to its member agencies. Of the 10 CFS capacity rights that the CMWD owns, the City of Newport Beach's proportionate share is 4.5 CFS for Reaches 1 through 3, and 6.6 CFS for Reach 4 (approximately one billion gallons per year). EOCF #2 is a 25 -mile long pipeline that runs from Yorba Linda to San Joaquin Hills Reservoir (see attached location map) and has a capacity of 310 CFS. This feeder provides MWD imported water to the various capacity right owners. There is only one other feeder that provides MWD water to the Newport area and that is the Orange County Feeder. The City has no capacity rights in this feeder. The EOCF #2 was constructed jointly by the Metropolitan Water District (MWD), the CMWD, and the cities of Anaheim and Santa Ana. The CMWD contracted for 10 CFS on behalf of its member agencies. Over the past several years the CMWD has been paying its proportionate share of the operation and maintenance costs based on the 10 CFS capacity rights it holds. Over the past ten years CMWD's proportionate cost share averaged $5,500 of which approximately $2,500 would be the City's average proportionate cost each year based on the 4.5 CFS and 6.6 CFS capacity rights. The obligation for each owner to pay its proportionate share of costs for operation, maintenance, and replacement/capital additions is covered in the Joint Powers Agreement signed in 1961. SUBJECT: Approval of Ownership Agreement of East Orange County Feeder No. 2 September 12, 2000 Page 2 Due to the consolidation, the CMWD will be assigning its capacity rights and financial obligations to its member agencies: The City of Newport Beach's financial obligation would not change because the CMWD currently passes its EOCF #2 costs to the member agencies based on their respective share of the 10 CFS rights. The formula selected to equitably distribute the 10 CFS rights was based upon the assessed valuation during the years 1961 to 1964. The EOCF #2 was designed and constructed during this time period and property taxes were collected to pay each agency's share of the construction costs based on their valuation. Using this method, the City of Newport Beach has 4.5 CFS and 6.6 CFS, depending on the reach of the pipeline. The CMWD has drafted an agreement that stipulates the assignment of the 4.5 CFS and 6.6 CFS of the EOCF #2 to the City of Newport Beach. The CMWD and MWDOC Boards have approved the attached agreement. Staff worked with the CMWD to develop the agreement and recommends that the City Council authorize the Mayor and City Clerk to execute the Agreement. Respectfully submi d PUBLIC WORKS DEPARTMENT Don Webb, Director Eldon Davidson Utilities Services Manager Attachments: Agreement Location Map � N / u - 4 z° W ci lu af A ? E� > - ao W a' o w 4 1 o U i ° U o• �5. W co �P z' Y z ro ui O J�O V a (PPS M w I Qa Q� F- U. W ZW X 0 C=,1 W S� W F O m W 4 LL Z Q �.•� Y Q > O Q U E"{ LO w Q3 • z z F�� V xj O m S O • .. I�.ryii P O v a EO�� Qi W CO P F`` IQ CIO 00 rr`r�p �`� •,�l � •'� �yF � A Z H p-pp el`NO 140a JO sou 0 OP V ��NOPF �O, w thN10 d� QF� z w a O�� �E�� OZ F+1 e w �� [•y U O� w 00 O OZ �O < Q u U F- AGREEMENT REGARDING CAPACITY RIGHTS IN THE EAST ORANGE COUNTY FEEDER No. 2 This AGREEMENT is made and entered into this 1st day of July, 2000 by and between COASTAL MUNICIPAL WATER DISTRICT ( "Coastal "), MUNICIPAL WATER DISTRICT OF ORANGE COUNTY ( "MWDOC') and CITY OF NEWPORT BEACH ( "CITY "). RECITALS A. Coastal and MWDOC are member agencies of the Metropolitan Water District of Southern California ( "Metropolitan"). B. Coastal and MWDOC heretofore entered into a contract dated July 11, 1961, with Metropolitan and the cities of Anaheim and Santa Ana for the construction and operation of a pipeline for the delivery of water from Metropolitan's lower feeder to the San Joaquin Reservoir in the vicinity of Corona del Mar. The contract was amended on July 25, 1962 and on April 26, 1965 (hereinafter, the "1961 Contract and Amendments'). The pipeline that is the subject of the 1961 Contract and Amendments is known as the East Orange County Feeder No. 2 and hereinafter shall be referred to as the "Feeder". C. In accordance with action taken by the Orange County Local Agency Formation Commission ( "LAFCO ") in 1998, the territory served by Coastal and MWDOC will be combined into one service area and the two districts will be consolidated effective January 17, 2001. D. CITY is currently served by Coastal and will continue to be served by the consolidated Coastal/MWDOC, and is entitled to receive water from Metropolitan when available. E. Pursuant to the 1961 Contract and Amendments, Coastal holds the right to 10 c.f.s. capacity in the Feeder ( "Coastal's capacity rights ") and has certain obligations with respect to the operation and maintenance of the Feeder. MWDOC also holds certain capacity rights in the Feeder and has certain obligations with respect to the operation and maintenance of the Feeder. However, MWDOC has entered agreements with certain of its member agencies assigning all of its capacity rights and obligations under the 1961 Contract and Amendments. F. CITY desires capacity rights in the Feeder and agrees to an assignment of a portion of Coastal's capacity rights and to assume a proportionate portion of Coastal's obligations under the 1961 Contract and Amendments, all as set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows: Coastal hereby assigns to CITY 4.5 c.f.s.of. capacity rights in reaches 1 through 3 of the Feeder and 6.6 c.f.s.of capacity rights in reach 4 of the Feeder. MWDOC consents and agrees to said assignment. 2. CITY agrees that it will accept the capacity rights in the Feeder subject to the burden of CITY's paying a proportionate part of all costs of operation and maintenance of the water transmission facilities in each reach of the Feeder in the ratio that such assigned capacity rights (4.5 c.f.s. in reaches 1 through 3 and 6.6 c.f.s. in reach 4) bear to the total capacity of the applicable reach of the Feeder. CITY agrees in acquiring the capacity rights in the Feeder, the subject of this Agreement, that it is acquiring a portion of capacity rights in the Feeder which may be subject to the terms and provisions of the 1961 Contract and Amendments, or as the same may hereafter be modified; provided, however, that the capacity rights hereinabove assigned to CITY shall not be decreased. 4. The parties hereto agree that any and all notices to be given in connection with the carrying out of the terms of this Agreement shall be deemed to have been given to a party hereto by the deposit in the U. S. mail, postage prepaid, addressed to said party at the address hereinbelow indicated: (a) insofar as Coastal or MWDOC is concerned: 10500 Ellis Avenue, Fountain Valley, CA 92728 (b) insofar as CITY is concerned: 3300 Newport Blvd., Newport Beach, CA 92663 Any party may change its address by five (5) day's written notice to the other parties. CITY warrants and represents to Coastal and MWDOC that it has the authority to enter into this Agreement and that any and all acts and activities by its governing board required by law to be made in connection with the entering into of this Agreement have in fact been made. 6. Coastal and MWDOC, as part of the consideration for the entering into of this Agreement, represent that all of Coastal's capacity rights (the 10 c.f.s. as stated in Recital F above and not including any additional capacity rights in the Feeder held by Metropolitan on Coastal's behalf) have been assigned to each of Coastal's member agencies in accordance with the same contribution formula. 7. It is understood and agreed that this Agreement in no way provides for the sale or delivery of water, and CITY agrees that as and when it may desire water through the Feeder, it will comply with the rules and regulations of Metropolitan, Coastal and MWDOC in that respect provided and then in force. It is further agreed that this Agreement does not provide for turnout points or so- called service connection points. IN WITNESS WHEREOF the parties hereto have executed this Agreement on the day and year written above. APPROVED AS TO FORM: By Robin Clauson Assistant City Attorney ATTEST: By: LaVonne Harkless City Clerk MUNICIPAL WATER DISTRICT OF ORANGE COUNTY By: 4ez zlgo u� President By: Secretary COAS 0 CITY OF NEWPORT BEACH A Municipal Corporation Mayor City of Newport Beach 3 T