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Home My WebLink AboutB- 4 Adopt Resolution granting the Amendment to the permit to Calmat Company A division of Vulcan Materials • • � The of Azusa �► AZUSA !► 'GHT & WATER For Quality of Life TO: Honorable Mayor&Members of the City Council FROM: Joseph F. Hsu, Director of Utilities VIA: Rick Cole, City Manager1_ DATE: May 18, 1999 AGENDA ITEM RECOMMENDATION: City Council adopt the Resolution granting the amendment to the Permit to CALMAT Company, a Division of Vulcan Materials Company, for the purpose of continued use of City Well No. 1903119. SUMMARY: The City and CALMAT have enjoyed over two years of operating under the existing permit for City Well No. 1903119. Since the time of the adoption of the Resolution granting CALMAT use of the well, there have been changes in the operating characteristics of the hydrology of the Main Basin,and an increase in the water production needs of CALMAT. These changes have presented an opportunity for CALMAT and the City to amend the existing permit in order to provide both CALMAT, and the CITY, the ability to engage in a groundwater banking option-use program, insuring a managed water supply to both entities. Said modification to the permit will add the appropriate language to Section 4, wherein, CALMAT may carry a balance, positive or negative,for a period not to exceed five rolling years in their water storage account with the City of Azusa. At the end of any given storage year, CALMAT may provide the City water, bucket-for- bucket,or funds equal to the price of replacement water from the Main San Gabriel Basin Watermaster at the price designated by Watermaster for that year from the Upper San Gabriel Valley Municipal Water District, to make the account balance between the entities zero. By allowing CALMAT the five year rolling time period, CALMAT can better manage its resource needs and adapt to changes in the operating safe yield. The City benefits as it is able to expand its storage account, better manage its resources,and is kept whole with either water transfers or revenue. BACKGROUND: In December 1996,the City Council granted CALMAT Company a permit to operate City Well No. 1903119. The City had acquired the water production well located in the San Gabriel Canyon Spreading Grounds as part of a closure agreement with Owl Rock Products. Owl had developed the well and operated it for some thirty years as part of their operation. Upon completion of the quarry operation Owl Rock dedicated the well to the City of Azusa. Insomuch as the well was developed for industrial uses, it may not be used for water production for public consumption. CALMAT contacted the City, who purchased interest in the property from Robertson's Ready Mix, and expressed interest in continuing to use the well water for industrial rock and sand production operations. FISCAL IMPACT: There is no fiscal impact to the City to establish a groundwater banking program. PREPARED BY: Steve Seller Interim Water Utility Manager &a-CZ S 729 N. Azusa Avenue P.O. Box 9500 Azusa, California 91702 626/812-5208 (phone) 626/334-3163 (fax) utilities@azusa.ca.gov (e-mail) , RESOLUTION NO. 99-C75 CITY COUNCIL OF THE CITY OF AZUSA COUNTY OF LOS ANGELES AMENDING RESOLUTION 96-C194 A PERMIT TO TAKE CITY PROPERTY CALMAT CO., A DELAWARE CORPORATION 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), a Division of Vulcan Materials Company, 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-to-day 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 amend their 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 (35) years. 3. Permit Fee. CALMAT shall pay to CITY one dollar in consideration of this Permit to use said WELL during the term hereof. . . r 4. Additional Consideration. The CITY and CALMAT shall establish a water transfers and groundwater banking account between them. CALMAT has a prescriptive pumping right to 1,793.35 acre-feet of water. This entitles CALMAT to store water up to their annual production right for any given year. CALMAT may also overdraft this right upon payment for replacement water to the Main San Gabriel Basin Watermaster. CALMAT may either choose to buy replacement water from the Watermaster, or request a transfer from the CITY to fulfill their obligation. If the CITY transfers water to CALMAT, CALMAT may carry a balance owed for that water for up to five years. At the end of the five years, CALMAT must have settled their account with the CITY by either transferring the water back to the CITY, or providing the CITY a cash payment equal to the price of replacement water as outline below. at the price designated by the Watermaster for that year from the Upper San Gabriel Valley Municipal Water District. Should CALMAT determine that it has excess water rights available,exceeding amounts it desires to transfer to its ground water baking account, then CALMAT agrees to offer CITY, as additional consideration, a first right of refusal to lease any excess 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, however, CALMAT agrees that such fee shall be less than 90% of the then current replacement price per acre foot, as established by the Main San Gabriel Basin Watermaster 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 to 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 grants an amendment to CALMAT a permit for the use of CITY WELL for the purpose of beneficial water production. PASSE• •• ' ' • VEDAND ADO ' - i, by the City Council of the City of Azusa at the regu thereof held#o day of June, 1999. CRISTINA CRUZ MADRID MAYOR I 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 7th day ofJune 1999, by the following vote of the City Council: AYES: COUNCIL MEMBERS: HARDISON, STANFORD, ROCHA, BEEBE, MADRID NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS NONE" APPROVED AS TO FORM: Opit. e a/Mat-3— CITY ATTORNEY /me / J.1 / AD•"P S* 't7-- CITY t''CITY CLERK