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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"