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HomeMy WebLinkAboutS4- Water CITY OF SAN BERNAhJINO - REQUEST FOk COUNCIL ACTION From: Mayor and Common Council Subject: Agreement between the City of San Bernardino, the Board of Dept: Bernard C. Kersey Water Commissioners and San Water Department Bernardino Valley Water Date: Conservation District relating June 9 , 1993 to a preannexation agreement Synopsis of Previous Council action: None Recommended motion: Adopt Resolution Signature Contact person: Bernard C. Kersey Phone: 384-5091 Supporting data attached: Yes Ward: 1, 2 , 4 & 7 FUNDING REQUIREMENTS: Amount: Source: (Acct. No.) Acct. Description) Finance: Council Notes: CITY OF SAN BERNARL _NO - REQUEST FOR ;OUNCIL ACTION STAFF REPORT The San Bernardino Valley Water Conservation District (SBVWCD) has filed an application with the Local Agency Formation Commission (LAFCO) to annex two parcels (Parcel A and Parcel B/C which consists of approximately 5, 000 acres - see attached map) into their district boundaries. The area of Parcel A is generally bounded on the west by "E" Street in the City of San Bernardino, on the north by Norton Air Force Base, on the east by Orange Street, and on the south by their existing boundaries. Parcel B/C is generally bounded on the west by Waterman Avenue; on the north by a combination of 40th Street, David Way, and the San Bernardino National Forest; on the east by a combination of Sterling Avenue, Eureka Street, Highland Avenue, Gilbert Street and various sections and half-section lines; and on the south by a combination of Baseline and 6th Streets. The SBVWCD is a water conservation district formed and operating under the Water Conservation District Law of 1931. For 80 years, SBVWCD has undertaken groundwater replenishment activities for the purpose of increasing the availability of groundwater to the land and water users overlying the Bunker Hill basin. SBVWCD owns 1, 300 acres of land in the Santa Ana River bed and adjacent lands in the vicinity of the cities of Highland and Redlands. SBVWCD plans to increase its water replenishment activities through the development of enhanced facilities within and adjacent to the Santa Ana River near Redlands and Highland. The facilities are anticipated to be developed incrementally over a 15-year period. SBVWCD proposes to expand their district boundaries to generally represent those areas within their current sphere of influence (lands which can receive benefit from their native water recharge operations) . SBVWCD is proposing to levy and collect a groundwater replenishment assessment charge (GRAC) on the groundwater produced from facilities located within their boundaries. The GRAC will be based upon acre-feet of water produced. The City currently has 6 wells within the SBVWCD boundary. The proposed annexation may increase this number to 13 . We currently produce an average of 2,800± acre-feet per year from wells located within SBVWCD's boundaries. The proposed annexation could increase the acre-foot per year subject to GRAC to 8, 200± acre-feet, depending upon our operational mode, (i.e, which wells we decide to produce) . As a condition of our not opposing the proposed SBVWCD annexation of additional lands, some of which lies within the City of San Bernardino, the SBVWCD has offered us (the City) a preannexation agreement which, in essence, would limit the GRAC to a maximum of $10. 00 per acre-foot for water produced by us from wells within their district boundaries. -1- CITY OF SAN BERNARL _NO - REQUEST FOR ;OUNCIL ACTION STAFF REPORT At their regular adjourned meeting held on May 6, 1993 , the Board of Water Commissioners unanimously voted to approve the preannexation agreement and authorized staff to submit it to the Mayor and Common Council for approval. Subsequent to the May 6, 1993 Board meeting, additional items have been negotiated into the preannexation agreement which are favorable to the City. The SBVWCD has exempted from their GRAC all groundwater produced for local domestic purposes through groundwater contamination remediation projects. This exemption will provide some incentive to local agencies within SBVWCD's boundaries to cleanup contaminated groundwater areas, thus reducing the temptation to dodge and drill. Without this exemption, depending upon the movement of groundwater contaminants, it may also become difficult to attract agency end users for the distribution of wellhead treated groundwater. JUSTIFICATION FOR SUPPLEMENTAL AGENDA: Staff has been working with representatives of the San Bernardino Valley Water Conservation District to obtain the most favorable terms. Final negotiations were agreed to on June 9, 1993 . 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ST I' Ne 9TH tw ST n>r 9TH sT < r ✓j 1 ¢ z ST au _w r. _ S■V= Y . t • .C.D. _ < ■ r .61 w PROPOSED ANNEXATION - Iw m s Y.T...c a J t •e AaY nab < Y m La+.l....R C KKT N T ;7 y 1 A fL41.Ei[R___-�__ _y Ll ♦� `=-� 1 PARCEL 8ICT"T� ■ 3RD naa■■ ..,=:��iBi� >„m � --5�---, s • L-'"� e IlOGS f 0 kY.�'v, I AV ;i 0 1 RESOLUTION NO. 2 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 3 SAN BERNARDINO, APPROVING A PREANNEXATION AGREEMENT WITH THE SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT RELATING TO PARCELS 4 B&C OF THE LOCAL AGENCY FORMATION COMMISSION ANNEXATION NO. 2751. 5 WHEREAS, the San Bernardino Valley Water Conservation District 6 Board of Directors has voted to establish a Groundwater 7 Replenishment Assessment Charge applied to all groundwater produced 8 within their District boundaries; and 9 WHEREAS, the San Bernardino Valley Water Conservation District 10 has submitted a proposal to annex territory within its existing 11 sphere of influence to their District, a portion of which is 12 territory located within the boundaries of the City of San 13 Bernardino; and 14 WHEREAS, the Board of Water Commissioners have met with 15 representatives of the San Bernardino Valley Water Conservation 16 District to discuss the Groundwater Replenishment Assessment Charge 17 and the proposed annexations, and support the programs proposed by 18 the District to improve groundwater quality and other programs that 19 provide benefit to the City of San Bernardino; and 20 Whereas, a preannexation agreement has been proposed which 21 would limit the Groundwater Replenishment Assessment Charge and 22 exclude groundwater that is produced for local domestic purposes 23 through groundwater contamination remediation projects. 24 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL 25 OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 26 That the agreement regarding the annexation of City of San 27 Bernardino territory to the San Bernardino Valley Water 28 Conservation District be approved, and that the Mayor of the City June 14 , 1993 -1- RESOLUTION APPROVTMG A PREANNEXATION AGREEMENT WITH SAN BERNARDINO VALLEY WATER CONS. JATION DISTRICT RELATING T, 'ARCELS B&C OF LAFCO ANNEXATION NO. 2751. 1 of San Bernardino is hereby authorized and directed to execute said 2 agreement, a copy of which is attached hereto as Exhibit 1, and 3 incorporated herein by reference as though fully set forth at 4 length herein. 5 I HEREBY CERTIFY that the foregoing resolution was duly 6 adopted by the Mayor and Common Council of the City of San 7 Bernardino at a meeting thereof, held 8 on the day of 1993 , by the 9 following vote to wit: 10 COUNCILMEMBERS: AYES NAYS ABSTAIN ABSENT 11 NEGRETE 12 CURLIN 13 HERNANDEZ 14 OBERHELMAN 15 OFFICE VACANT 16 POPE-LUDLAM 17 MILLER 18 19 Rachel Clark, CITY CLERK 20 The foregoing resolution is hereby approved this day 21 of 1993 . 22 23 TOM MINOR, MAYOR City of San Bernardino 24 APPROVED AS TO FORM 25 AND LEGAL CONTENT: 26 JAMES F. PENMAN City Attorney 27 28 � By: � J n 17, 1993 -2- AGREEMENT REGARDING ANNEXATION OF CITY OF SAN BERNARDINO TERRITORY TO THE SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT THIS AGREEMENT is entered into as of , 1993 , by and between the SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT, a special governmental district formed and operating under the Water Conservation District Law of 1931, as amended, California Water Code Section 74000, et se g. (hereinafter, the "District") and the CITY OF SAN BERNARDINO, a municipal corporation (hereinafter, the "City") , and the BOARD OF WATER COMMISSIONERS OF THE CITY OF SAN BERNARDINO (hereinafter "Board") . RECITALS A. For over eighty years, the District and its predecessor- in-interest have conducted groundwater replenishment activities for the purpose of conserving local water supplies and increasing the supply of groundwater for the lands and residents within the boundaries of the District. B. The City boundaries include approximately 2 , 166 acres of real property situated adjacent to but outside of the boundaries of the District, but within the "sphere of influence" of the District as designated by the Local Agency Formation Commission of the County of San Bernardino (hereinafter, "LAFCO") pursuant to Government Code Section 56425, et se g. , which lands are more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference (such lands are hereinafter referred to as the "Subject Territory") . C. The City and Board operate seven (7) water producing facilities within the Subject Territory, which water producing facilities produce groundwater from the groundwater basin which underlies the District and other lands. D. In accordance with Water Code Section 75500, et seq. , the District has levied a groundwater charge on groundwater produced from facilities located within the boundaries of the District (hereinafter, the "Groundwater Charge") . E. In accordance with Government Code Section 56650, et sea. , the District has adopted its Resolution No. 314, making application to LAFCO for the annexation of approximately 4 , 908 .8 acres of land to its boundaries, all of which are within the District's sphere of influence, and including the Subject Territory (the proposed annexation of the Subject Territory to the District's boundaries is hereinafter referred to as the "Subject Annexation") . I FS2\131\015042-0003\2039806.3 06/10/93 r..vnrnTm Al A F. The District, the City, and the Board mutually desire to enter into this Agreement to set forth the conditions governing the Subject Annexation. EXECUTORY AGREEMENTS NOW, THEREFORE, in consideration of the facts recited above, and the covenants, conditions and promises contained herein, the parties hereto agree as follows: SECTION ONE: ANNEXATION OF THE SUBJECT TERRITORY TO THE DISTRICT 1. 1 The District shall take all reasonable actions to pursue and complete the annexation of the Subject Territory to the District. 1. 1. 1 The District shall submit the terms and conditions of this Agreement as part of the proposed terms and conditions of the Subject Annexation. 1. 1. 2 The District shall request that LAFCO incorporate this Agreement into its resolution making determinations with respect to the Subject Annexation. 1. 2 Neither City nor Board shall oppose, file any protest to, initiate any legal or administrative proceeding to challenge, or otherwise take any action to hinder or interfere with the annexation of the Subject Territory to the District in accordance with this Agreement. SECTION TWO: LEVY AND COLLECTION OF GROUNDWATER CHARGES FROM GROUNDWATER PRODUCTION FROM WITHIN THE SUBJECT TERRITORY 2 . 1 The Subject Territory shall be subject to the levy and collection of the Groundwater Charge from and after the effective date of the Subject Annexation. From and after the date on which the Subject Territory is subject to a Groundwater Charge, the City and the Board shall file all groundwater production reports, and make all payments for groundwater production, in accordance with Water Code Section 75610, et sea. 2 . 2 In the event that the District determines at any time during the term of this Agreement to levy and collect a Groundwater Charge in an amount in excess of Ten Dollars ($10. 00) per acre-foot of groundwater produced by the City or the Board from within the Subject Territory (as adjusted in accordance with Paragraph 2 . 2 . 2 FS2\131\015042-0003\2039806.3 06/10/93 2 below) , and the City or the Board does not consent in writing to such Groundwater Charge, the District shall, within thirty (30) days following the receipt by the District of the City's or the Board's payment of such Groundwater Charge, reimburse to the City or the Board an amount equal to the Annexation Reimbursement. 2 . 2 . 1 For purposes of this Paragraph 2 . 2 , the term "Annexation Reimbursement" shall be calculated for a six-month period set forth in Water Code Section 75611 (i.e. , January 1 through June 30; July 1 through December 31) in accordance with the following formula: AR = (GW - B) x AF Where: AR = the Annexation Reimbursement amount. GW = the Groundwater Charge levied by the District upon groundwater production by the City or the Board from groundwater producing facilities located within the Subject Territory. B = the Base Groundwater Charge, in the amount of $10. 00 per acre-foot of groundwater produced by the City or the Board from groundwater producing facilities located within the Subject Territory, adjusted in accordance with Paragraph 2 . 2 . 2 below. AF = the quantity (in acre-feet) of groundwater produced by the City or the Board from groundwater producing facilities located within the Subject Territory. 2 . 2 . 2 The Base Groundwater Charge described in Paragraph 2 . 1. 1 above shall be adjusted annually in accordance with the "Consumer Price Index for Urban Wage Earners and Clerical Workers Los Angeles-Anaheim-Riverside Area (All Items) " (hereinafter, the "CPI") , compiled by the United States Department of Labor, Bureau of Labor Statistics (1982-1984 = 100) , or such successor index as may be published by the United States Department of Labor in lieu of the CPI; provided, however, that the Base Groundwater Charge shall not increase by an amount in excess of two percent (2 . 0%) annually, notwithstanding any higher increase in the CPI. In the absence of the CPI or any successor index, the parties shall jointly select an alternative index, subject to the same maximum annual increase. 2 . 3 In the event that the City and the District, or the Board and District as the case may be, mutually determine in writing that groundwater production by City or the Board within the Subject FS2\131\015042-0003\2039806.3 06/10193 3 Territory is for the purpose of removing non-naturally occurring contamination, non-naturally occurring pollution, or other non- naturally occurring substances impairing the use of groundwater, that the groundwater production is for domestic, potable uses, and that the well head treatment facilities used for such activities are funded entirely with public monies, District shall reimburse to the City or the Board an amount equal to the Groundwater Charge assessed against such publicly funded groundwater production. 2 . 4 In the event that the District enters into an annexation agreement with the City of Riverside, a municipal corporation, which establishes the condition of capping the Groundwater Replenishment Charge on all of the City of Riverside's water production within the District's current boundaries, then the parties shall amend this agreement to provide that the same i provision shall apply to the City and the Board. SECTION THREE: MISCELLANEOUS 3 . 1 Notices: Except as otherwise set forth hereinabove, all notices, payments, transmittals of documentation and other writings required or permitted to be delivered or transmitted to any of the parties under this Agreement shall be personally served or deposited in a United States mail depository, first class postage prepaid, and addressed as follows: If to District: San Bernardino Valley Water Conservation District 101 E. Redlands Blvd. , Suite 247 P.O. Box 1839 Redlands, California 92373-0581 Attn: General Manager If to City: City of San Bernardino 300 North "D" Street San Bernardino{ CA 92418 Attn: City Administrator If to Board: Board of Water Commissioners 300 North "D" Street 5th Floor San Bernardino, CA 92418 Attn: General Manager or such other address as either party may direct to the other in writing. Service of any instrument or writing shall be deemed completed forty-eight (48) hours after deposit in a United States mail depository. FS2\131\015042-0003\2039806.3 06/10/93 4 3 .2 Condition Subsequent and Term: This Agreement shall be subject to the condition subsequent that the Subject Annexation is completed. Thereafter, this Agreement shall continue for so long as the Subject Territory is within the boundaries of the District. 3 . 3 Warranty of Authority: Each officer of the District, the Board, and the City affixing his or her signature to this Agreement warrants and represents by such signature that he or she has the full legal authority to bind his or her respective party to all of the terms, conditions and provisions therein, that his or her respective party has the full legal right, power, capacity and authority to enter into this Agreement and perform all of its provisions and obligations, and that no other approvals or consents are necessary in connection therewith. 3 . 4 Headings: The titles and headings of Sections and Paragraphs of this Agreement, as herein set forth, have been inserted for the sake of convenience only, and are not to be taken, deemed or construed to be any part of the terms, covenants or conditions of this Lease, or to control, limit or modify any of the terms, covenants or conditions hereof. 3 . 5 Integration, Construction and Amendment: This Agreement constitutes the entire understanding of the District, the Board, and the City as to those matters contained herein, and no prior oral or written understanding shall be of any force or effect as to those matters covered by this Agreement. This Agreement shall be governed by the laws of the State of California, and shall be construed as if drafted by all parties hereto. Except as provided herein, this Agreement may not be modified, altered or amended except in writing signed by the District, the Board, and the City. 3 . 6 Successors: This Agreement, and all of the terms, conditions and provisions herein, shall inure to the benefit of, and be binding upon, the District, the Board, and the City, and their respective successors and assigns. IN WITNESS WHEREOF, the parties have executed this Agreement FS2\131\015042-0003\2039806.3 06/10/9355 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, APPROVING PREANNEXATION AGREEMENT W i THE SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT RELATING TO PAk�ELS B&C OF THE LOCAL AGENCY FORMATION COMMISSION ANNEXATION NO. 2751 . as of the date first written above. SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT APPROVED AS TO FORM: RUTAN & TUCKER By President David Cosgrove General Counsel, San Bernardino Valley Water Conservation District Secretary CITY OF SAN BERNARDINO APPROVED AS TO FORM: AND LEGAL CONTENT: Mayor JAMES F . PENMAN Tom Minor City Attorney, City Attest: of San Bernardino Bye ewv� y.c�� City Clerk 1 Rachel Clark BOARD OF WATER COMMISSIONERS OF THE CITY OF SAN BERNARDINO Margaret H. Chandler President APPROVED AS TO FORM AND LEGAL CCNTENT: JAMES F. PENMAN, City Attorney General Counsel, Board of Cheryl A. Flowers Water Commissioners Deputy City Clerk and Ex-Officio Secretary By `J FS2\131\015012-0003\2039806.3 06/10/93 6