HomeMy WebLinkAboutReso 26-1978, , WOM~ :KAO: S~W A/D/ !~
RESOLUTION NO. 26-78
A RESOLUTION AUTHORIZING EXECUTION OF
AGREEMENT WITH CALIFORNIA WATER SERVICE COMPANY
CABOT, CABOT AND FORBES UNIT NO. 3
WATER COMPLETION PROJECT
RESOLVED, by the City Council of the City of South San Fran-
cisco, California, that the Mayor of this City be, and he is
hereby, authorized and directed to execute in duplicate, on
behalf of the City of South San Francisco, that certain Agreement
between the City of South San Francisco and California Water Ser-
vice Company, a copy of which is attached hereto as Exhibit "A",
and the City Clerk is directed to attest his signature and affix
thereto the official seal of the City.
I hereby certify that the foregoing resolution was regularly
introduced and adopted by the City Council of the City of South
San Francisco at a regular meeting held this 1st day of
March , 1978, by the following vote:
AYES,
COUNCILMEMBERS Richard A. Battaglia, William A. Borba,
Emanuele N. Damonte, Terry J. Mirri and
Leo Padreddii
NOES, COUNCILMEMBERS None
ABSENT, COUNCILMEMBERS None
ATTEST:
'0341A-24a WJML:KIJ:ar 01/05/78
AGREEMENT
THI~ AGREEMeNt, made and enkered into 5h{s day of
· 19 , by and between the person or Persons listed
in Paragraph 1 hereof~"hereinafter collectively referred to as
"Applicant" and CALIFORNIA WATER SERVICE COMPANY, a California
corporation· hereinafter referred to as "Utility"·
W I T N E S S E T H:
WHEREAS, Applicant has Conducted special assessment
proceedings pursuant to the Municipal Improvement Act of 1913'and
Resolution of Intention No. 5648, adopted by the City Council of
Applicant on September 7, 1971, for the acquisition and construction
of improvements, including water facilities which, are to be under
the ownership, management and-control of Utility;
WHEREAS, the lands within the boundaries of the special
assessment district formed pursuant to said proceedings lie within
the service boundary of Utility, situated in the City. of South San
Francisco, County of'San Mateo, State of California, are shown on
the map attached hereto and marked Exhibit "A", and are hereinafter
--- referred to as the "Subdivision";
WHEREAS, a map.of the Subdivision was filed in the Office of
the County Recorder of San Mateo County on the day of
~!~ , 19 , in Volume of Maps at Page
and
WHEREAS, Applicant desires to have water service available
through and by means of water facilities to be installed
substantially as shown on Exhibit "A"; and
WHEREAS, said water facilities consist of mains and
appurtenances, hereinafter referred to as "Mains and Appurtenances",'
and certain special.facilities, hereinafter referred to as "Special
Facilities", required to furnish water to the Subdivision or parts
thereof as follows:
EXHIBIT "A"
'-- The Mains and Appurtenances and the Special Facilities being
hereinafter collectively referred to as the "Facilities"; and
WHEREAS, the installation of the Facilities and the furnishing
of water service through and by means thereof are necessary and
valuable adjuncts to the sale of lots in the Subdivision, and will
materially increase the value of said lots; and
WHEREAS, upon the terms and conditions herein set forth
Utility is willing to install the Facilities and to furnish water
service in the Subdivision through and by means thereof at the rates
and in accordance with the rules of Utility now in-force in its
South San Francisco District, or that may from time to time
hereafter be lawfully established in said district;
NOW, THEREFORE, for and in consideration of the premises and
of the mutual covenants, agreements, terms and provisions herein
contained, it is agreed as follows, to wit:
1. ApDlicant. The names, addresses and descriptions of the
person or persons herein collectively referred to as "Applicant" are
as follows:
Name Address Description
City of South
San Francisco
City Hall
400 Grand Avenue
P. O. Box 711
South San Francisco,
California 94080
A municipal corpo-
ration of the State
of California
2. Applicable Rule and Law. This agreement is entered into
pursuant to the requirements and in accordance with the form of
agreement and the various ~applicable provisions of Utility's Main
Extension Rule, hereinafter referred to as the "Rule", in effect and
on file with the California Public Utilities Commission and pursuant
to the provisions of Sections 10109 to 10110.1, inclusive, of the
Streets and Highways Code of the State of California; a copy of the
Rule is attached hereto, marked Exhibit "B" and by this reference
made a part hereof. This agreement does not, therefore, require a
specific authorization of said Commission to carry out its terms and
conditions.
3. Applicant's Deposit.
(a) The estimated total installed cost of the Facilities,
hereinafter referred to as the "Estimated Cost" is $101 432 00
consisting of $36,432.00 representing Utility's estimated cost of
.__ installing the Mains and Appurtenances and connecting the Mains and
i Appurtenance~ to Utility's existing mains, and $65,000.00
t representing Utility's estimated cost of constructing the Special
Facilities. Applicant has advanced to Utility an amount equal to
the Estimated Cost, receipt of which amount is hereby acknowledged.
by Utility.
(b) Applicant agrees that when the areas which are
undivided on Exhibit "A" hereto shall become divided for individual
occupancy and it becomes possible to determine the size and location
of the services required for such occupancy, Applicant shall advance
to Utility to be added to and held as part of the Estimated Cost
subject to the terms of this agreement, the estimated total
installed cost of such services.
4. Installation of Facilities. Utility agrees that it will,
as soon as necessary materials and labor are available, and
necessary permits, franchises, licenses or other governmental
authorizations have been obtained, commence and prosecute to
completion with all reasonable diligence the work of installing the
Facilities. Utility reserves the right to make such changes in
design or materials as it may deem necessary. Within sixty (60)
days after Utility has ascertained its actual costs in installing
the Facilities, it will provide Applicant with a statement of the
same showing in reasonable detail the costs incurred for material,
labor and other direct and indirect costs, overheads and total
costs, or units.costs or contract costs, whichever are appropriate.
If such actual construction costs shall not have been determined
within one hundred twenty (120) days after completion of
construction work, a preliminary determination of actual costs shall
be submitted, based upon the best available information at that
time. If such actual costs as finally determined shall be greater
or less than the Estimated Cost, the difference shall be advanced by
Applicant to Utility or repaid by Utility to Applicant, as the case
may be, and the Estimated Cost adjusted accordingly. The Estimated
Cost as so adjusted shall be Applicant's Advance Subject to Refund.
5. Engineering and Street Grades. Applicant agrees to set
stakes on the street and lot boundaries of the Subdivision and
provide Utility with finished street grades and typical cross
sections to enable Utility to determine a location for the mains and
the depth to which they are to be laid. Utility will determine the
locations and depths of the mains in relation to the data furnished
by Applicant. Installation of the mains will not be commenced by
Utility until street grades have been brought to those established
by public authority. In the event Utility incurs any cost or
expense in relocating, raising or lowering the Facilities by reason
of inaccuracy of Applicant in performance of its obligations under
this paragraph, Utility shall give written notice to APplicant of
such actual cost or expense within ten (10) days after Utility has
ascertained the same, and Applicant agrees to pay Utility promptly
the amount thereof, which shall not be subject to refund by Utility
hereunder.
6. Refund. Provided that Applicant is not in default
hereunder, Utility agrees to make refunds hereunder to Applicant or
such other party as may be entitled thereto in cash, without
interest, for a period not to exceed twenty (20) years from the date
hereof in annual payments made within .forty-five (45) days of the
anniversary of the date hereof. Refunds for the Mains and
Appurtenances shall be determined as follows: Utility shall~
determine the revenue received by it from customers, .including fire
protection agencies, supplied by service pipes connected directly to
the water mains to be installed hereunder; the refund shall be 22%
of the revenue so received. The total amount so refunded.shall not
exceed the advance subject to refund for Mains and Appurtenances.
Refunds for the Special Facilities shall be determined as follows:
the advance subject to refund for the Special Facilities shall be
divided by the number of services, namely four (4) in the tract to
be served by the Special Facilities, said advance'per service shall
be refunded for each service on which one or more bona fide
customers are served by Utility. The total amount so .refunded shall
not exceed the advance subject to refund for the Special
Facilities. As used herein, the words "bona fide customer" shall
mean a customer (excluding any customer formerly served at the same
location) who has given evidence satisfactory to Utility that
service will be reasonably permanent to the property which has been
improved with a building of a permanent nature and to which service
has commenced. The provision of service to a real estate developer
or builder (which terms shall include any individual, association of
individuals, partnership or corporation that divides a parcel of
land into two or more portions) during the construction or
development period shall not establish him as a bona fide customer.
Ail amounts paid by Utility as a refund payment for such
Facilities under this Section shall be deposited into a special fund
to be established and administered by the City Treasurer and applied
as a credit upon the assessment and supplemental assessment, if any,
in the same manner as provided in Section 10427.1. Such credits
shall be applied only to the assessments levied for the particular
improvements for which such refund is made. Any such amounts shall
be transferred to the general fund of the City if such amounts have
been paid later than four years after the due date of the last
installment upon such bonds. No main extension refund agreement
shall be entered into with the owner or developer of the Subdivision.
7. Service from Facilities. The Mains and Appurtenances were
designed to serve four (4) customers as shown on Exhibit "B"
hereto. If at any time within twenty (20) years from the date
hereof three (3) bona fide customers (defined in Section 1.3.a. of
the Rule) are being served from the Mains and Appurtenances, Utility
will so notify Applicant, and at that time will become obligated to
pay Applicant, in cash any balance of Applicant's Advance Subject to
Refund for Mains and Appurtenances only which will remain unrefunded
at the end of said twenty (20) year period. Any such balance shall
be refunded in five (5) equal annual installments, payable beginning
twenty-one (21) years from the date hereof.
8. Utilit¥'s Right to Offset. In the event Applicant shall
become entitled to a repayment or refund under the provisions of
Paragraphs 4, 6 or 7 of this agreement, Utility shall have the right
at such time to offset against the amount then due Applicant
hereunder the total amount of any indebtedness then due or owing by
Applicant to Utility.
9. Ownership. The Facilities to be installed hereunder and
all construction work in connection therewith shall be and remain at
all times the property of Utility, and Applicant shall have no
right, title or interest whatsoever in or to the same.
10. Construction Delay. Utility shall not be responsible for
any delay in construction resulting from any cause beyond its
control, including, without limiting the generality of the
foregoing, any delay resulting from inability to obtain sufficient
proper materials and supplies, labor disturbances or shortages, or
weather conditions, or inability to obtain necessary permits,
licenses, franchises or other governmental authorizations. In the
event Utility is unable to obtain sufficient materials to meet all
construction requirements necessary to provide adequate service to
all its customers, it shall be entitled to allocate materials
obtained by it to such construction projects as in its sole
discretion it deems most important to service needs of its
customers, and any delay in construction of the Facilities resulting
from any such allocation of materials by Utility shall be deemed to
be a cause beyond its control and it shall not be responsible for
such delay.
11. Notices. Any notice which it is herein provided may or
shall be given by either party to the other shall be deemed to have
been duly given when deposited in the United States mail, registered
or certified, postage prepaid and addressed to the party to whom
such notice is given at the following respective addresses:
To Applicant: City Hall
400 Grand Avenue
P. O. Box 711
South San Francisco, California 94080
To Utility:
1720 North First Street
Post Office Box 1150
San Jose, California 95108
Either party, by notice given as hereinbefore provided, may
change the address to which notice shall thereafter be addressed.
12. Nature of Obligations; Assignment. Until Applicant shall
notify Utility in writing to the contrary, all refunds hereUnder
shall be paid by Utility to the City of South San Francisco.
Applicant may assign this agreement upon written notice to Utility
at any time following determination of the amount of Applicant's
Advance Subject to Refund. Any such assignment shall apply only to
those refunds hereunder which become due more than thirty (30) days
.after the date of receipt by Utility of such notice of assignment.
Utility will not make any single refund payment hereunder to more
than one person.
13. Successors and Assigns. Subject to the provisions of the
preceding Paragraph 12, this agreement shall inure to the benefit of
and shall bind the .respective heirs, executors, administrators,
successors and assigns of the parties hereto.
14. JurisdiCtiOn of Public Utilities Commission. This
agreement shall at all times be subject to such changes or
modifications by the California Public Utilities Commission as said
Commission may from time 'to time direct in the exercise of its
jurisdiction.
IN WITNESS WHEREOF, the Parties hereto have executed this
agreement in duplicate the day and year first above written.
CITY OF SOUTH SAN FRANCISCO
CALIFORNIA WATER SERVICE COMPANY
By By
Mayor
Vice President
Attest By
C'ity Clerk
Secretary
"Appl icant"
"Ut i 1 i ty"