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HomeMy WebLinkAboutResolution No. 96-C194RESOLUTION NO. 96-c194 CITY COUNCIL OF THE CITY OF AZUSA COUNTY OF LOS ANGELES RESOLUTION GRANTING CALMAT CO. A DELAWARE CORPORATION A PERMIT TO TAKE CITY PROPERTY WHEREAS, the City of Azusa (CITY), a municipal corporation, Water Division, owns a certain water well No. 1903119 (WELL) situated in the City of Azusa, located on a parcel of land described as shown in Exhibit "A" attached hereto; and WHEREAS, Calmat Co. (CALMAT) is the owner of a hard rock quarry at 3901 Fish Canyon Road in the City of Azusa, more commonly known as Azusa Rock, Inc. (AZUSA ROCK); and WHEREAS, AZUSA ROCK has requirements for water in its day -today operations for dust control and product enhancement; and WHEREAS, the CITY has granted CALMAT a Conditional Use Permit with respect to CALMAT'S mining activities at AZUSA ROCK (Resolution No. 3546, et seq.), including a land conveyor from CALMAT's AZUSA ROCK quarry to its processing plant in Irwindale; and WHEREAS, CALMAT has been adjudicated certain water right (WATER RIGHTS) pursuant to judgement of the Superior Court of California, County of Los Angeles, legal action entitled, Upper San Gabriel Valley Municipal Water District v. City of Alhambra, et al. (Case No. 924128); and WHEREAS, CALMAT desires to secure a permit from the CITY to use said WELL upon the following terms and conditions and in consideration of their mutual covenants and conditions, the parties agree as follows: 1. Description of Property. The CITY grants a Permit to CALMAT and CALMAT takes from the CITY the WELL together with all equipment, piping and appurtenances as shown in Exhibit "A", which document is hereto and by this reference made a part hereof as though fully set forth. 2. Term. This Permit shall commence on the date of its adoption and will continue unabated until one of the following occurs: a. AZUSA ROCK's quarry reserves are fully depleted; or b. CALMAT gives written notice to CITY of its desire to terminate; or C. CALMAT no longer has WATER RIGHTS for pumping within the basin. The forgoing notwithstanding, in no event shall the term of this Permit exceed thirty (34) years. 3. Permit Fee. CALMAT shall pay to CITY one dollar in consideration of this Permit to use said WELL during the term hereof. 4. Additional Consideration. CALMAT shall temporarily transfer one -acre foot of Main San Gabriel Basin production right, bucket for bucket, equally for one -acre foot of water produced at said WELL to CITY at the end of each production year. Should CALMAT determine that it has excess water rights available after any said production year, then CALMAT agrees to offer CITY, as additional consideration, a first right of refusal to lease any excess stored water in the Main San Gabriel Basin, as determined and regulated by the Main San Gabriel Basin Watermaster. The fee for said leased water shall be negotiated on a year-to- year basis, however, CALMAT agrees that such fee shall be less than 90% of the then current replacement price per acre foot, as established by the Metropolitan Water District of Southern California for untreated replacement water. Further, CALMAT currently purchases electrical power from CITY for that portion of the conveyor system which lies within the City of Azusa, and will continue to do so until such time CITY allows its customers direct access within Azusa. CITY understands that CALMAT is a large industry user of electrical power, and the deregulation of the electric industry in California may present opportunities for the CITY to provide additional competitive energy services to CALMAT in the future. CALMAT and CITY agree to conduct further discussions regarding CALMAT's electrical service needs in the future to the extent such discussions are of mutual benefit to the parties. 5. Maintenance. CALMAT, at its sole cost and expense, shall be responsible for any and all maintenance of the WELL and related appurtenances including pipes, pump, internal components, etc. excluding metering and backflow devices, for the duration of the term of this Permit. 6. Utilities. CALMAT, at its sole expense, shall establish, secure and maintain electrical service to the WELL. CALMAT shall pay, prior to delinquency, all charges for electricity ( and any similar charges that may accrue with respect to the WELL) during the term of this Permit. 7. Indemnity. To the extent that it may legally do so, CALMAT agrees that it shall indemnify and hold harmless the CITY, its employees , agents, successors and assigns, from and against all claims liens, encumbrances, actions, loss, damage, expense and liability arising from or growing out of loss of or damage to property, including CITY's own property or injury to or death of persons, resulting in any manner whatsoever, directly or indirectly, by reason of the exercise of the Permit hereby granted; provided however, that this covenant shall not apply to those claims, liens, encumbrances, actions, loss, damage, expense and liability that are proximately caused, in whole or in part, by any active negligence, or willful misconduct, of CITY, or its employees or agents provided however, that this exception shall extend only to that portion of negligence or wilful misconduct, attributable toothe City. 8. Successors. This Permit shall bind and inure to the benefit of the successors and assign of the Parties hereto, subject to the provisions 9. Assignment. This permit shall not be assigned by CALMAT without the prior written consent of CITY, which will not be unreasonably withheld. 10. Entry by CITY. CALMAT shall permit CITY's officers or agents to enter upon the premises at all reasonable times to make reasonable inspection thereof or for any lawful purpose. NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Azusa hereby grant CALMAT a permit for the use of CITY WELL for the purpose of beneficial water production. PASSED, APPROVED AND ADOPTED by the City Council of the City of Azusa at the regular meeting thereof held on the 21st day of October 1996. J,�L6o STEPHA . ALEXANDER MAYOR OF THE CITY OF AZUSA 0 HEREBY CERTIFY, that the foregoing resolution was duly adopted by the City Council of the City of Azusa, at a regular meeting thereof, held on the . 16, day of necember1996, by the following vote of the City Council: AYES: COUNCILMEMBERS: Hardison, Madrid, Naranjo, Beebe, Alexander NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS None rruULri CITY CL ILIJ OF THE CITY OF AZUSA APPROVED AS TO FORM: CITY ATTORNEY