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HomeMy WebLinkAboutVallecitos Water District; 1991-06-13;AGREEMENT FOR SALE OF RECLAIMED WATER TO THE CARLSBAD MUNICIPAL WATER DISTRICT BY THE VALLECITOS WATER DISTRICT This Agreement (“AGREEMENT’) is made by and between the VALLECITOS WATER DISTRICT (“VALLECITOS), organized and existing pursuant to the County Water District Law, California Water Code section 30000 et seq., and the CARLSBAD MUNICIPAL WATER DISTRICT (“CARLSBAD”), organized and existing pursuant to the Municipal Water District Act, California Water Code section 70000 et seq., and is effective upon execution of the parties. R-E-C-I-T-A-LS WHEREAS, CARLSBAD is responsible for the distribution of potable water within the City of Carlsbad and its boundary. WHEREAS, CARLSBAD and VALLECITOS recognize the use of reclaimed water (municipal wastewater) as a positive and achievable means of helping to meet the growing water demands of Southern California in the future. WHEREAS, VALLECITOS operates the Meadowlark Water Reclamation Plant (“MEADOWLARK”) for the treatment of domestic wastewater, which is capable of producing up to two (2.0) million gallons per day (“MGD’), or approximately 2,240 acre-feet per year, of reclaimed water. WHEREAS, CARLSBAD is interested in purchasing reclaimed water from VALLECITOS for purveyance to ultimate users for golf course irrigation and other appropriate uses within CARLSBAD’s boundary. -1- , .> WHEREAS, on May 25, 1983, the City of Carlsbad (hereinafter referred to as the "CITY") and the Carlsbad Municipal Water District signed an agreement titled WATER SERVICE AGREEMENT which, in addition to potable water issues, established the CITY as responsible for all phases of the reclaimed water system in its water service area, and for the supply and distribution of reclaimed water, and for the adoption of a reclaimed water master plan, plans and specifications, and regulations for the installation, construction, and operation of reclaimed water facilities. WHEREAS, the California Regional Water Quality Control Board, San Diego Region (hereinafter known as "REGIONAL BOARD) adopted on January 23, 1984, ORDER NO. 84-10, WATER RECLAMATION REOUIREMENTS FOR THE CITY OF CARLSBAD FOR THE PURVEYANCE OF RECLAIMED WATER IN SAN DIEGO COUNTY, which permits the CITY to distribute within its boundaries reclaimed water produced by MEADOWLARK. WHEREAS, the REGIONAL BOARD has adopted on January 23, 1984, ORDER NO. 84-1 1, WATER RECLAMATION REOUIREMENTS FOR THE LA COSTA HOTEL AND SPA SAN DIEGO COUNTY, which allows the use of reclaimed water treated at MEADOWLARK for irrigation of the La Costa Hotel and Spa's 36-hole golf course. Order No. 84-11 allows reclaimed water to be stored in existing golf course ponds only from April 1 through October 31 each year. WHEREAS, on March 20, 1984, the CITY adopted Resolution No. 7539, _A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA DESIGNATING A RECLAIMED WATER MASTER, which designated the CIWs Director of Utilities and Maintenance as WATER MASTER for the distribution of reclaimed water in the CITY, as previously referenced herein. The Manager of the Carlsbad Municipal for the CITY; and required by REGIONAL BOARD Order No. 84-10, City, on November 6, 1990, appointed the General Water District, a subsidiary district, the water master -2- . .I WHEREAS, in July 1984, the CITY completed a document titled, RULES AND REGULATIONS FOR RECLAIMED WATER SERVICE PROVIDED BY THE CITY OF CARLSBAD IN ITS CITY SERVICE AREA (herein referred to as "RULES AND REGULATIONS'), which was reviewed and approved by the REGIONAL BOARD staff, and staff of the California Department of Health Services and the San Diego County Department of Health Services. WHEREAS, on May 4, 1987, the REGIONAL BOARD adopted ORDER NO. 87- 81, WASTE DISCHARGE REOUIREMENTS FOR SAN MARCOS COUNTY WATER DISTRICT MEADOWLARK WASTEWATER RECLAMATION PROJECT, which established VALLECITOS as a wholesaler of reclaimed water to the CITY and permits the use of reclaimed water from MEADOWLARK to be used within the CITY. WHEREAS, it is the mutual desire of the parties hereto to establish herein an agreement for the delivery of up to 2240 acre-feet on an average annual basis of reclaimed water from the MEADOWLARK to CARLSBAD for the purposes and on the terms and conditions herein set forth. NOW, THEREFORE, in consideration of these recitals and mutual covenants contained herein, CARLSBAD and VALLECITOS agree as follows: C-0-V-E-N-A-N-T-S SECTION 1. DELIVERY AND ACCEPTANCE VALLECITOS agrees to deliver to CARLSBAD and CARLSBAD agrees to accept from VALLECITOS reclaimed water produced at MEADOWLARK in the quantities and on the terms and conditions specified in this AGREEMENT. -3- SECI'ION 2. TREATMENT STANDARDS VALLECITOS shall treat the wastewater to be delivered to CARLSBAD in conformance with the standards of the REGIONAL BOARD for discharges of treated wastewater to land, as documented in the previously referenced REGIONAL BOARD Waste Discharge Requirements issued to VALLECITOS and any addenda thereto, or replacement thereof, according to latest requirements of the California Department of Health Services for the production and use of reclaimed water for the irrigation of golf courses, school years, parks, and other landscaped areas where the public has unrestricted access as documented in its "WASTEWATER RECLAMATION CRITERIA, AN EXCERPT FROM THE CALIFORNIA ADMINISTRATIVE CODE, TITLE 22, DIVISION 4, ENVIRONMENTAL HEALTH," commonly referred to as "TITLE 22 REQUIREMENTS." SECI'ION3. OU A"Y TO BE DELIVERED CARLSBAD and VALLECITOS shall meet at mutually convenient times during the year to establish a schedule for minimum delivery of reclaimed water to CARLSBAD based on CARLSBAD's contract users of reclaimed water at that time. VALLECITOS and CARLSBAD shall make every reasonable effort to comply with such delivery schedules once mutually accepted. CARLSBAD shall be responsible for payment of minimum delivery schedules regardless of whether CARLSBAD uses all of the reclaimed water which is delivered. The minimum volume of reclaimed water to be delivered to CARLSBAD will be at least 2.0 MGD during the peak summer use period and will average about 2240 acre- feet per year, but the actual volume per year may vary according to seasonal needs. The parties understand and accept the fact with no liability to VALLECITOS that there may be day-to-day interruptions in service due to plant emergencies requiring occasional plant shut- down and repairs associated with acts of God, orders by regulatory bodies and judicial courts, and/or equipment breakdowns. -4- SECTION 4. METERS CARLSBAD shall be responsible for all costs associated with installing a Master Reclaimed Water Flow Meter at a location mutually agreed upon that measures the quantity of reclaimed water supplied to CARLSBAD from MEADOWLARK. VALLECITOS shall be responsible for operating, maintaining, calibrating, and reading this flow meter on a regular basis. VALLECITOS shall read and report to CARLSBAD meter results no less than once per month. VALLECITOS shall deliver reclaimed water to CARLSBAD to the location of the Master Water Meter. VALLECITOS shall have no responsibility or obligation to deliver reclaimed water beyond the Master Meter location. Results of the calibration shall be copied to CARLSBAD on a regular basis. SECTION 5. OWNERSHIP. OPERATION. AND MAINTENANCE CARLSBAD shall own, operate, and maintain the reclaimed water storage and distribution system downstream of VALLECITOS’ reclaimed water meter, excepting those reclaimed water facilities that will be owned by the ultimate reclaimed water user and which is provided for in separate agreements between CARLSBAD and that user. VALLECITOS shall own, operate, and maintain all the reclaimed water treatment, storage, and conveyance facilities upstream of and including VALLECITOS’ reclaimed water meter. Both parties to this AGREEMENT shall grant each other necessary easements and rights-of-way to operate and maintain the reclamation facilities described herein on lands they control, and assist each other to obtain easements or rights-of-way on lands controlled by other entities not subject to this AGREEMENT. SECTION 6. RECLAIMED WATER OUALITY VALLECITOS does not guarantee or warrant the quality of the reclaimed water provided CARLSBAD or subsequent USERS, except that VALLECITOS shall use its best good faith efforts to insure that said reclaimed water shall have a quality meeting the -5- standards and approvals of the REGIONAL BOARD as required by the Waste Discharge Requirements most recently issued by the REGIONAL BOARD for producing reclaimed water used for landscape irrigation where the public will have access. Both parties to this AGREEMENT understand that the presence of dissolved minerals in the reclaimed water as measured as total dissolved solids (“TDS”) and other substances in higher concentrations can be deleterious to the plants irrigated with such water. VALLECITOS agrees to exercise reasonable effort toward insuring that the quality of the reclaimed water it purveys will not be harmful to irrigated areas by specifically requiring the ban of self-regenerating water softening equipment within VALLECITOS’ sewer service area. VALLECITOS does not agree, however, to provide any type of demineralization equipment or mineral removal processes for the reclaimed water supplied to CARLSBAD. Both parties further agree that failure to supply reclaimed water with a TDS concentration of less than 1,OOO mg/l as determined in conformance with the methodology specified in VALLECITOS’ waste discharge permit may be sufficient grounds for CARLSBAD to suspend its obligations to accept and pay for reclaimed water until quality is restored to less than 1,000 mg/l TDS. The parties recognize during periods of drought VALLECITOS may experience lower flows as a result of conservation efforts, However, the amount of solids received would not decrease and could cause the TDS levels to rise. During such drought periods as designated by CARLSBAD, the parties agree reclaimed water with a TDS concentration of no more than 1,200 mg/l will be an acceptable quality under the terms of this agreement. SECTION 7. USE OF RECLAIMED WATER CARLSBAD agrees that the use of reclaimed water pursuant to this AGREEMENT shall be confined to the boundaries of the City of Carlsbad. -6- . .. SECTION 8. RECLAIMED WATER DELJVERY PRESSURE Reclaimed water delivery by VALLECITOS to CARLSBAD’s distribution system shall not be at a guaranteed minimum pressure. SECTION 9. COMPLIANCE WITH REGULATORY REOUIREMENTS CARLSBAD agrees to comply with all applicable reclaimed water distribution regulations issued and/or mandated by the California and County of San Diego Departments of Health Services and the REGIONAL BOARD. CARLSBAD shall be responsible for insuring that all users of reclaimed water within CARLSBAD’s jurisdiction shall first apply for and receive California Water Reclamation Requirements issued by the REGIONAL BOARD, and that all users shall be made to comply with CARLSBAD’s most up-to-date reclaimed water RULES AND REGULATIONS. SECTION 10. PRICE OF RECLAIMED WATER CARLSBAD shall initially pay VALLECITOS a reclaimed water price of Two Hundred Forty-One Dollars ($241.00) per acre-foot used which is based on the current wholesale cost of potable water from the San Diego County Water Authority and the volume recorded by VALLECITOS’ reclaimed water meter. This rate may be adjusted by VALLECITOS on July 1 of each year. SECTION 11. TERMS OF PAYMENT CARLSBAD shall be invoiced by VALLECITOS on a quarterly basis for the minimum delivery schedule amounts plus any amounts which exceed minimum amounts. CARLSBAD agrees to pay VALLECITOS for such purchases within 30 days. In the event payment is more than 30 days in arrears, VALLECITOS reserves the right to stop delivery -7- of reclaimed water until payment is made and charge interest of one percent (1%) per month on delinquent amounts. SECTION 12. COST OF CERTAIN FACILITIES VALLECITOS and CARLSBAD agree to coordinate the costs associated with construction, inspection, and administration of the facilities identified in the Encina Basin Water Reclamation Project Plain. These facilities include a new screening facility located at the Mahr Reservoir, additional effluent pumps at MEADOWLARK and a new six (6) inch force main from the Mahr Reservoir to MEADOWLARK. CARLSBAD agrees to provide all funding for these facilities. SECTION 13. ACCESS TO RECORDS VALLECITOS and CARLSBAD shall keep proper books and records, in which complete and correct entries shall be made of all reclaimed water delivered and used throughout the duration of this AGREEMENT. Said books and records shall, upon written request, be subject to inspection by any duly authorized representative of VALLECITOS, CARLSBAD and the REGIONAL BOARD. SECTION 14. NOTICE Notices required or permitted under this AGREEMENT shall be sufficiently given if in writing and if either served personally upon the party to whom it is directed or by deposit in the United States mail, postage prepaid, certified, return receipt requested, addressed to the parties at the following addresses: A. CARLSBAD General Manager Carlsbad Municipal Water District 5950 El Camino Real Carlsbad, CA 92008 -8- B. VALLECITOS General Manager Vallecitos Water District 788 San Marcos Boulevard San Marcos, CA 92069 It shall be the sole responsibility of each party to this AGREEMENT to promptly notify the other of any change of title and/or address as long as this AGREEMENT remains in effect. SECTION 15. ASSIGNMENT This AGREEMENT or any interest therein or any monies due or to become due thereunder shall not be assigned, hypothecated, or otherwise disposed of without the prior written consent of both parties to this AGREEMENT, which consent shall not be unreasonably withheld. SECTION 16. EFFECTIVE DATE This AGREEMENT shall become effective upon the date at which it is executed by both parties to this AGREEMENT. SECTION 17. TERMINATION OF AGREEMENT The term of this AGREEMENT shall be twenty (20) years from the effective date, subject to the rights of the parties to an earlier termination as provided in SECTION 18. This AGREEMENT shall continue in force from year to year after the initial twenty-year (20) term until either party gives one (1) year written notice to the other of its intention to terminate or renegotiate the AGREEMENT. The AGREEMENT shall terminate one (1) year from the date upon which such written notice is received unless the parties agree otherwise, in writing. -9- SECTION 18. EARLY TERMINATION If at any time during the term of this AGREEMENT reclaimed water in compliance with the standards referenced in this AGREEMENT cannot lawfully be used by CARLSBAD for the purposes intended by this AGREEMENT, because of government regulations now in effect or hereinafter imposed, or, if CARLSBAD should for any reason breach its obligations under this AGREEMENT in any material respect, including, but not limited to, failure to pay for reclaimed water as required, failure to accept reclaimed water as required, failure to maintain necessary facilities, or other substantial failure, VALLECITOS may terminate this AGREEMENT with no further obligation by giving sixty (60) days’ written notice thereof to CARLSBAD. Also, if VALLECITOS should refuse upon demand to deliver reclaimed water to CARLSBAD in conformance with this AGREEMENT for any reason, CARLSBAD may terminate this AGREEMENT with no further obligation upon sixty (60) days’ written notice thereof to VALLECITOS. SECTION 19. ENTIRE AGREEMENT This AGREEMENT constitutes the entire understanding between the parties hereto with respect to the subject matter hereof superseding all negotiations; prior discussions; and preliminary agreements and understandings, written or oral. This AGREEMENT shall not be amended, except by written consent of the parties hereto, and no waiver or any rights under this AGREEMENT shall be binding unless it is in writing signed by the party waiving such rights. In the event any provision of this AGREEMENT shall be held to be invalid and unenforceable, the other provisions of this AGREEMENT shall be held to be valid and binding on the parties hereto. -10- SECTION 20. BINDING EFFECT This AGREEMENT shall be binding upon the parties hereto and their respective successors in interest, permitted assigns, executors, administrators, and personal representatives. SECTION 21. INDEMNIFICATION CARLSBAD expressly agrees to indemnify, defend, and hold VALLECITOS, its Directors, officers, and employees free and harmless from and against any and all loss, liability, expense, claims, costs, suits, and damages including attorney fees arising from CARLSBAD’s operation and maintenance of reclamation facilities within CARLSBAD’s boundaries, excepting any such loss, liability, expense, claims, suits, and damages caused by VALLECITOS’ neghgence or intentional failure to perform, errors and/or omissions associated with VALLECITOS’ obligations to this AGREEMENT. VALLECITOS assumes all liability for damage to persons or property caused by the reclaimed water prior to the time that it reaches the Master Reclaimed Water Flow Meter. VALLECITOS agrees to indemnify, defend, and hold harmless CARLSBAD, its officers, agents, and employees from any and all claims, demands, actions, liability, or loss which may arise from VALLECITOS’ storage, use, treatment, or delivery of the treated effluent prior to the time it reaches the Master Reclaimed Water Flow Meter. CARLSBAD assumes all liability except as defined in the preceding paragraph for damage to persons or property caused in any manner by the reclaimed water once it passes the Master Reclaimed Water Flow Meter. CARLSBAD agrees to indemnify, defend, and hold harmless VALLECITOS, its officers, agents, and employees from any and all claims, demands, actions, liability, or loss which may arise from CARLSBAD’s storage, use, or delivery of reclaimed water after it passes the Master Reclaimed Water Flow Meter. -11- SECTION 22. ATTORNEYS’ FEES If any arbitration proceeding or action at law is brought to enforce or interpret the provisions of this AGREEMENT, the prevailing party shall be entitled to a reasonable attorney’s fee and expert witnesses’ fees, which may be set by the court in the same action brought for that purpose, in addition to any other relief to which he may be entitled. SECTION 23. VENUE In the event of any legal or equitable proceeding to enforce or interpret the terms or conditions of this AGREEMENT, the parties agree that venue shall lie only in the courts in or nearest to the North County Judicial District, County of San Diego, State of California. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed and be effective on the date first above mentioned. VALLECITOS: CARLSBAD: President,! I u-fium General Manager Date: June 3, 1991 x Date: - 12-