1990-0417_KINOSHITA FARMS INC_Agreement� City Cggy
AGREEMENT FOR REIMBURSEMENT OF EXPENSES
INCURRED IN CONNECTION WITH USE OF SAN
JUAN BASIN AUTHORITY WATER FACILITIES AND
CAPISTRANO VALLEY WATER DISTRICT FACILITIES
THIS AGREEMENT is made this 17th day of April 1990 by and
between THE CITY OF SAN JUAN CAPISTRANO, hereinafter referred to as "City" and
KINOSHITA FARMS, INC., hereinafter referred to as "Farmer".
Whereas, Farmer requires a dependable and adequate source of water for the
irrigation of 58 (more or less) acres of land in the City of San Juan Capistrano; and
Whereas, Farmer's existing pump and well are inoperable and a substitute source
of water must be secured so as to continue agricultural uses of Farmer's land; and
Whereas, Farmer has entered into an Emergency Agricultural Water Agreement
with the San Juan Basin Authority dated November 15, 1983; and
Whereas, Farmer cannot afford to pay for major costs, expenses or damage, and
desires that City, as a part of its agricultural preservation program, reimburse Farmer
for expenses payable pursuant to certain paragraphs of said agreement; and
Whereas, Farmer also incurs substantial water costs from water supplied by the
Capistrano Valley Water District; and
Whereas, Farmer and City agree that reimbursement for water supplies from the
Capistrano Valley Water District will aid and support the City's agricultural program; and
Whereas, City finds and determines that the availability of a source of adequate
irrigation water is essential to the continued preservation of agriculture in the City of
San Juan Capistrano,
NOW, THEREFORE, City and Farmer mutually agree as follows:
1. Reimbursement Program.
City hereby agrees to reimburse Farmer for those expenses which have
been assessed to Farmer by the San Juan Basin Authority under Sections 3, 5 and 8 of
said Emergency Agricultural Water Agreement. In addition, City shall reimburse Farmer
for electrical costs incurred in the pumping of water relating to Paragraph 7 of said
agreement in that amount of money in excess of $700.00 which Farmer incurs in
electrical costs.
City shall also reimburse Farmer one-half (1/2) of the costs Farmer incurs
in Farmer's usage of water from the Capistrano Valley Water District.
Farmer shall submit to City, on a monthly basis, proof of its expenses
prior to City's payment of reimbursements according to this section.
Page 1 - Agreement for Reimbursement
i
2. Term of Agreement.
The term of this Agreement shall be for one year. City will consider
renewing this Agreement following a one year review.
3. Prior Agreement Rescinded.
That certain Reimbursement Agreement between City and Farmer dated
November 15, 1983 is hereby rescinded. j
ATTEST:
� .►_1� awl � .l _ �
APPROVED AS TO FORM:
Page 2 - Agreement for Reimbursement
Kinoshita Farms, Inc.
By ir" - ll f '
Shigeru Cinoshi , President
CITY MANAGER
1. REQUEST FOR LICENSE AGREEMENT - 31351 AGUACATE ROAD (PAUL
BURKE) (600.30)
Written Communications:
(1) Report dated April 17, 1990, from the City Manager,
regarding a request from Paul and Rene Burke to
construct a chain link fence on the edge of a 60 -foot
wide portion of the City's equestrian and vehicle
easement which traverses the southwest boundary of
their property. Staff's recommendation is to deny the
request.
(2) Letter dated April 16, 1990, from Paul Burke requesting
continuation of the item.
Continuation of Item:
As requested by the applicant, the item was continued to an
undetermined date.
REVISION OF AGREEMENT FOR REIMBURSEMENT OF COST FOR AGRICUL-
TURE IRRIGATION WATER (KINOSHITA FARMS) (6A6r30i'(�(��,&C)
Written Communication:
Report dated April 17, 1990, from the Assistant City Manager,
regarding a request from Kinoshita Farms for the City to use
Agriculture Preservation Program fees to assist the farm in
its cost for purchasing Capistrano Valley Water District
water due to increasing financial hardship.
There was a consensus of Council that the agreement be
amended to provide for annual review.
Annroval of Agreement:
It was moved by Councilman Schwartze, seconded by Councilman
Friess, and unanimously carried that the Agreement for
Reimbursement of Expenses Incurred in Connection with Use of
San Juan Basin Authority Water Facilities and Capistrano
Valley Water District Facilities between the City and
Kinoshita Farms be approved, providing for reimbursement to
Kinoshita Farms of 50% of the monthly cost of the farm's
purchase of Capistrano Valley Water District water for
irrigation. The Agreement was modified to establish a one-
year term for the Agreement, with annual review.
-15-
4/17/90
AGENDA ITEM April 17, 1990
TO: Stephen B. Julian, City Manager
FROM: George Scarborough, Assistant City Manager
SUBJECT: Revision of Agreement for Reimbursement of Cost
for Agriculture Irrigation Water (Kinoshita Farms)
SITUATION
In 1983, the agriculture well operated by Kinoshita Farms became
inoperable and Kinoshita Farms was forced to begin purchasing water
for the irrigation of their Del Obispo farm property from the San
Juan Basin Authority at significantly greater cost than that of
operating the well. In order to assist in the preservation of the
Kinoshita agriculture operation, the City entered into an agreement
with Kinoshita Farms to use funds from the City's Agriculture
Preservation Program to help pay the cost of irrigation. In part,
the City agreed to reimburse Kinoshita Farms for a portion of the
cost of purchasing Basin Authority water which exceeded $700 in any
month. The yearly cost of the City's reimbursement from
Agriculture Preservation Program fees has varied as the annual
rainfall has varied, however, the 1989 reimbursement was $5,734.
Over the years, in addition to the Basin Authority water, Kinoshita
Farms has used Capistrano Valley Water District water. Because
District water is purer and distributed with more pressure than
Basin Authority water, the Kinoshita Farm has used District water
in the Farm's drip irrigation and sprinkler systems. As with Basin
Authority Water usage, Kinoshita Farms's yearly usage of District
water varies as the annual rainfall varies. However, a normal year
appears to have cost around $6000.
As the Council is aware, recent years have brought increasing
financial hardship to farming operations in South Orange County.
Kinoshita Farms has not been immune from these hardships. To
assist Kinoshita Farms in continuing their farming operations in
the future, Kinoshita Farms request the City use Agriculture
Preservation Program fees to assist in the cost of the purchase of
District water.
Having reviewed the matter with Kinoshita Farms, staff suggest that
50% of the cost of Kinoshita Farms purchase of District water be
reimbursed monthly.
FOR CITY COUNCIL AGENDOJ 4/46
Agenda Item -2-
COMMISSION /BOARD REVIEW. RECOMMENDATION
Not applicable.
April 17,1990
The cost of the reimbursement of 50% of Kinoshita Farms monthly
purchase of District water will be approximately $3,000 annually.
The cost of reimbursement will be fully funded from development
contributions of fees to the City's Agricultural Preservation
Program.
1. Authorize execution of the attached agreement between Kinoshita
Farms and the City providing for reimbursement to Kinoshita Farms
of 50% of the monthly cost of Kinoshita Farm's purchase of
Capistrano Valley Water District water for irrigation.
2. Request additional information.
3. Take no action.
RECOMMENDATION
Authorize execution of the attached agreement between Kinoshita
Farms and the City providing for reimbursement to Kinoshita Farms
of 50% of the monthly cost of Kinoshita Farm's purchase of
Capistrano Valley Water District water for irrigation.
Respectfully submitted,
L -G r S ar orough,
Assista City Manager
Attachments
V 6 600.60
CITY CLERK'S DEPARTMENT - ACTION REMINDER
TO: City Manager's Office
FROM: Records Coordinator DATE: March 17, 1991
SITUATION:
On April 17, 1990, the City of San Juan Capistrano entered into an Agreement for
Reimbursement of Expenses with Kinoshita Farms, Inc., to provide water for the
irrigation of 58 acres of land.
ACTION REQUESTED:
Will this agreement be completed by April 17, 1991. Please inform this department of
the status of this agreement.
ACTION TO BE TAKEN:
DATE WHEN NEXT ACTION (S) SHOULD BE TAKEN:
SIGNATURE OF OFFICIAL TAKING ACTION:
DATE SIGNED:
***FOR CITY CLERK'S DEPARTMENT USE ONLY***
Tickler Date: 03117/91
Deadline Date: 04/17/91
cc: City Attorney
Assistant City Manager
(600.60/kinoshital)
0
April 23, 1990
JMw,
1
inllrrel1111
uuuuw 1961
1776
• B
Mr. Shigeru Kinoshita
Kinoshita Farms
P. O. Box 201
San Juan Capistrano, California 92693
Re: Reimbursement of Agriculture Water Costs
Dear Mr. Kinoshita:
MEMBERS OF THE CITY COUNCIL
ANTHONY L. SLANG
LAWRENCE F. BUCHHEIM
KENNETH E. FRIESS
GARY L. HAUSDORFER
PHILLIP R. SCHWARTZE
CITY MANAGER
STEPHEN B JULIAN
At their regular meeting held April 17, 1990, the City Council of the City of San
Juan Capistrano approved the agreement which provides for a 50% reimbursement
of the monthly cost to purchase Capistrano Valley Water District water for
irrigation purposes. Council amended the agreement originally presented by staff
to provide for yearly review.
Two copies of the agreement signed by the City are enclosed. Please sign both
copies and return the "City Copy" to the City Clerk's Department.
Thank you for your cooperation. If we can be of further assistance, please let us
know.
Very truly yours,
Cheryl Johnson
Deputy City Clerk
Enclosure
32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 • (714) 493.1171
0
ROW CROP VEGETABLES
0
KINOSHITA FARMS, INC.
P.O. Boz 201
SAN JUAN CA/ISTRANO. CALIFORNIA 92693
April 4, 1990
Gary L. Hausdorfer, Mayor
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Dear Gary;
TRUCK FARMING
As per our meeting, I am formally requesting the City of San Juan
Capistrano to use the Agricultural Preservation Fund to assist Kinoshita
Farms. As you know we suffered a great loss on the night of February 14th
when the temperature fell to 22°. We lost all the strawberries that were
in various stages of growth. In addition we lost the bell pepper plants
which were planted under hot caps (minature greenhouses). These two crops
represent the majority of our income for the year.
We are now facing a disaster. By that, I mean we do not know if the
strawberries and bell peppers will recover to produce a crop. If in fact
the strawberries and peppers do recover, their quality and price will sure-
ly be affected.
Kinoshita Farms would like the City of San Juan Capistrano to assist
in the following areas;
1. Pay all irrigation costs for the balance of the year
2. Pay cost of plants
3. Other related expenses
Your careful consideration in this matter will be greatly appreciated.
Sincerely,
y9
X s�o%s✓ ��
C /Y2Shigeru Kinoshita
C /Y) • President