00-1121_SOUTH COAST WATER DISTRICT_Water Service AgreementV
WATER SERVICE AGREEMENT AND LEASE
OF CAPACITY RIGHTS RE. DEL OBISPO CONNECTION
This Water Service Agreement and Lease of Capacity Rights Re. Del Obispo
Connection ("Agreement") is entered into is to be effective the a 1 401. day of
November , 2000 by and between the South Coast Water District ("SCWD"), a
water district organized and existing under the County Water District Law, Water Code
§§ 30000 et seg., in its capacity as operator of the Joint Transmission Main, and the
Capistrano Valley Water District ("CVWD"). SCWD and CVWD are sometimes
collectively referred to in this Agreement as the "Parties."
RECITALS
A. SCWD is the designated operator of a certain "Joint Transmission Main,"
a domestic water pipeline that conveys water imported from the Metropolitan Water
District of Southern California. The parties that hold capacity or property rights in the
Joint Transmission Main designated SCWD as operator pursuant to a "Joint Exercise of
Powers Agreement to Operate and Maintain the Joint Transmission Main" dated
/YIO�C`CN Aee, 2000. The Joint Transmission Main extends from the Coastal Junction
at the terminus of the East Orange County Feeder No. 2 to the Brandt Reservoir located
in the City of San Clemente. SCWD replaced the Tri -Cities Municipal Water District
("TCMWD") as operator of the Joint Transmission Main, effective March 31, 2000.
B. Since 1996, CVWD has been drawing water into CVWD's water system
from a service connection on Del Obispo ("Del Obispo Connection") installed on the
Joint Transmission Main. CVWD paid TCMWD a water service charge for use of the
Del Obispo Connection, but to date has never purchased or leased capacity in the Joint
Transmission Main. The parties that hold capacity or property rights in the Joint
Transmission Main have invested capital for the design and construction of the
Pipeline's facilities. CVWD wishes to make a lease payment while drawing water from
the Del Obispo Connection in lieu of making a capital investment in the Pipeline
facilities. CVWD also is willing to reimburse SCWD for the value of leased capacity
during CVWD's past use of the Del Obispo Connection.
C. In its capacity as the designated operator, SCWD wishes to (1) provide
water service to CVWD through the Del Obispo Connection at a rate up to 1.5 cubic feet
per second ("cfs"); (2) obtain a water delivery charge for all water delivered to CVWD;
(3) lease to CVWD 1.5 cfs of capacity in the Joint Transmission Main at a rate of Sixty
Thousand Dollars ($60,000) per year in lieu of requiring a capital investment to
purchase capacity in the Pipeline facilities; and (4) obtain reimbursement for the value
of leased capacity during CVWD's past use of the Del Obispo Connection in the amount
of Two Hundred Forty Thousand Dollars ($240,000), which reflects a rate of $60,000
per year of past usage.
NOW, THEREFORE in consideration of the mutual covenants and conditions
contained in this Agreement, the parties hereby agree as follows:
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AGREEMENT
1. Entitlement to Receive Water at the Del Obispo Connection and Delivery
of Water. CVWD shall be entitled to receive up to 1.5 cfs of water from the Del Obispo
Connection under the terms and conditions set forth in this Agreement. SCWD shall
transport and deliver up to 1.5 cfs of water to CVWD through the Joint Transmission
Main and the Del Obispo Connection.
2. Water Delivery Charge. CVWD shall pay SCWD the Metropolitan Water
District wholesale water delivery charge for water delivered through the Del Obispo
Connection in accordance with the rates, fees and charges established from time to
time by authority of the Metropolitan Water District.
3. Lease of Capacity. SCWD hereby leases to CVWD, and CVWD leases
from SCWD, capacity rights in the Joint Transmission Main in the amount of 1.5 cfs, for
the sole purpose of drawing water from the Del Obispo Connection into CVWD's
system. CVWD acquires no capacity or property ownership rights in the Joint
Transmission Main under this Agreement other than the right to draw 1.5 cfs from the
Del Obispo Connection for as long as this Agreement shall remain in effect.
4. Rent. As rent under the lease, CVWD shall pay SCWD sixty thousand
dollars ($60,000) per year for all or any portion of each fiscal year that this Agreement is
in effect. Each fiscal year runs from July 1 to June 30. Each fiscal year's rent shall be
due and payable in advance at SCWD offices on the first day of July.
5. Reimbursement for Past Capacity Use. As compensation for CVWD's use
of capacity rights in the Del Obispo Connection prior to commencement of the term of
this Agreement, CVWD shall pay to SCWD the amount of Two Hundred Forty Thousand
Dollars ($240,000), which reflects a rate Sixty Thousand Dollars ($60,000) per fiscal
year or any portion thereof for each of the four years that CVWD has drawn and will
draw water from the Del Obispo Connection, up to and including June 30, 2000. The
payment shall be due and payable upon execution of this Agreement.
6. Term. The term of this Agreement shall be for a year-to-year period,
commencing July 1, 2000, Either Party may terminate the lease by giving the other
party one year's written notice to terminate.
7. Indemnification. SCWD agrees to hold harmless, indemnify, and defend
CVWD, its officers, employees, agents, representatives, and successors -in -interest (the
"CVWD Indemnitees"), against any loss, damage, cost, or expenses which CVWD
Indemnitees may incur or be required to pay by reason of any injury or property damage
caused by the negligence of SCWD, its employees, subcontractors, or agents in
performing this Agreement.
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CVWD agrees to hold harmless, indemnify, and defend SCWD, its officers,
employees, agents, representatives, and successors -in -interest (the "SCWD
Indemnitees") against any and all loss, damage, cost, or expenses which the SCWD
Indemnitees may incur or be required to pay by reason of any injury or property damage
caused by the negligence of CVWD, its employees, subcontractors, or agents in
performing this Agreement.
8. Successors and Assigns. This Agreement shall inure to the benefit of,
and be binding upon the parties hereto and their respective successors, and assigns.
9. Notices. Formal notices, demands, and communications between CVWD
and SCWD shall be given either by (i) personal service, (ii) delivery by a reputable
document delivery service that provides a receipt showing date and time of delivery, (iii)
electronic telecommunication, verified by printed receipt showing date and time of
transmission and delivery, or (iv) mailing in the United States mail, certified mail,
postage prepaid, return receipt requested, addressed to:
CVWD: Capistrano Valley Water District
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: General Manager
SCWD: South Coast Water District
31592 West Street
Laguna Beach, CA 92677
Attn: General Manager
Notices shall be deemed effective upon receipt if notice is given pursuant to
clause (i), (ii) or (iii) of the preceding sentence; notices shall be deemed effective three
(3) business days after deposit in the mail if given pursuant to clause (iv) of the
preceding sentence. Such written notice, demands, and communications shall be sent
in the same manner to such other addresses as either party may from time to time
designate by mail.
10. No Third -Party Beneficiaries. Nothing in this Agreement is intended to
create any third -party beneficiaries to the Agreement, and no person or entity other than
CVWD and SCWD, and the permitted successors and assigns of either of them, shall
be authorized to enforce the provisions of this Agreement.
11. Assignment. Neither party shall have the right to assign this Agreement,
by operation of law or by written instrument, without the consent of the other party,
which consent shall not be unreasonably withheld.
12. Entire Agreement, Waivers, and Amendments. This Agreement
integrates all of the terms and conditions mentioned herein, or incidental hereto, and
supersedes all negotiations and previous agreements between the parties with respect
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to all or any part of the subject matter hereof. All waivers of the provisions of this
Agreement must be in writing and signed by the appropriate authorities of the party to
be charged. A waiver of the breach of the covenants, conditions or obligations under
this Agreement by either party shall not be construed as a waiver of any succeeding
breach of the same or other covenants, conditions or obligations of this Agreement. All
amendments and modifications hereto must be in writing and signed by the appropriate
authorities of CVWD and SCWD.
13, Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
14. Severability. If any provision of this Agreement is held by a court of
competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will
nevertheless continue in full force without being impaired or invalidated in any way.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed.
VALLEY WATER DISTRICT
Dated: November 7, 2000 B
ATTEST: ,, Its: G orge S arborough, General Manager
Clerk of, e oard
Dated: YL'd- `� 'z // X �
ATTEST:
Board Secretary
SOUTH COAST WATER DISTRICT
By:%C 1ST
Its: Richard D. Runge, President
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