HomeMy WebLinkAboutStaff Report 4.A 04/15/2013 Agenda'Itevw#4.A
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DATE: April 15,2013
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. John, F.ASCE—Director, Public Works &Utilities
Matt Pierce—Ellis Creek Water`Recycling Facility Operations Supervisor
SUBJECT: Resolution Authorizing the City:Manager to Execute Agreements for the Purchase
and Use of Recycled Water with Long-Term Agricultural Customers
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Authorizing the City
Manager to Approve a Model Agreement for the Purchase and Use of Recycled Water:
BACKGROUND
The purpose of the proposed action is to develop a standard agreement for the remaining long-
term agricultural users of recycled water that will transition these,users from a"payment to user"
system to a "user pays" system. Staff recommends,discounting the recycled water commodity
charge from $1.88 per unit (748 gallons).or $818 per acre-foot to $.184 per unit or $80 per acre-
foot for the recycled water purchase agreements with long-term agricultural users for the next 3
to 5 years. Staff believe this pricing structure is necessary to successfully dispose of 798 acre
feet of recycled water annually for the next few years to give the City time to transition all
recycled water use to current users of City potable water within the■City limits to meet the
objectives defined in the City's General Plan and Urban Water Management Plan for"potable
water offset". It is the goal to use all recycled water for irrigation of open spaces within the City
in the next 3 to 5 years and eliminate use by the agricultural community during that time frame.
The Regional Water'Quality Control Board prohibits the Ellis Creek Water Recycling Facility
from discharging treated effluent to the Petaluma River from May to October. To meet the
discharge prohibition and.dueto limited effluent storage capacity, the facility must produce and
distnbute;a roximatel'
pp" y'700 million gallons, or 2:100 acre-feet, of-recycled water per year
Recycled water is currently used to irrigate two'golf courses, two vineyards comprising 250
acres and 750 acres of pastures.
The City of Petaluma began.using treated wastewater to irrigate agricultural land in 1976 based
on the findings of a wastewater reuse study. AP-the time, the City was able to demonstrate that
effluent from-the oxidation:ponds;could successfully irrigate a range of crops under local soil and
climatic conditionsthat.laid the groundwork for-the partnership the City currently enjoys with
Agenda Reyi- :
City Attom- Finance Director City ManagC
the members of the agricultural community that have beemlong-term users of City recycled
water. The City pumps recycled water to private agricultural"properties, and from there, users
distribute the recycled water through their own irrigation systems.
At the City Council meeting on June 7, 2010, the City Council authorized the City Manager to
execute agreements for use of recycled water with agricultural clients (Resolution 2010-081
N.C.S.). These six agreements reset the reimbursement rate paid to users from $237.26 to $185
per acre-foot. At this meeting and the later meeting mentioned below on May 7, 2012, Council
members expressed an interest to transition from a program that pays agricultural users to accept
recycled water to a program that sells recycled water as a commodity.
On May 7, 2012, the City Council authorized the City Manager to execute an agreement for
purchase and use of recycled water with Jackson Family Investments (Resolution 2012-058), and
to execute substantially similar agreements with other recycled water customers as needed. This
agreement incorporated the commodity charge for recycled water set by resolution of the City
Council as part of the new water service rate schedule adopted on December 5, 2011 by
Resolution No. 2011-165 N.C.S. The current commodity'charge established by the City Council
for recycled water is $1.88 per unit (748 gallons), or $819 per acre-foot. It was staffs intent that
the Jackson agreement would become the new standard form for future recycled water
agreements with agricultural interests. However, changes in the City's recycled water operations
and price sensitivity of the long-term agricultural users suggest that some substantive agreement
changes are necessary to provide for disposal of the needed volume of recycled water on a user
pay basis while the City's recycled water distribution system evolves to focus as much as
possible on potable water offset through use of recycled water to irrigate open spaces within the
City.
DISCUSSION
In February 2013, six recycled water agreements executed in 2010 expired. In anticipation of
this, staff initiated a request.for proposal process last fall and solicited proposals to purchase City
recycled water from all interested agricultural users, both existing customers and a potential new
customer. The proposals ranged in value from $225 per acre-foot paid to the City to $170 per
acre-foot payment to the user. Based on analysis of the proposals, staff estimate that disposal of
the needed volume of recycled water to the long-term agricultural users on a user pay basis will
require discounting the recycled water commodity charge from $1.88 per unit (748 gallons) or
• $818 per acre foot to $.184 per unit or $80 per acre foot for the next 3 to 5 years. This is
substantially less than the $819 per acre foot price established in resolution 2011-165 N.C.S.
adopted in December 2011 which applies to the;Jackson Family recycled water purchase
agreement. However, as is further discussed below in this staff report, staff believe that the need
to dispose of a sufficient volume of recycled water, and the financial benefits to the water and
wastewater enterprises of converting to a user pay system for disposal of recycled water while
the transition to greater emphasis on potable water offset is under way,justify the considerable
discount to the recycled water commodity charge.
Concurrently, staff has evaluated the potential to increase use of recycled water within the City
limits on open space and determined that Prince.Park, Wiseman Park and Casa Grande High
School are prime customers. These.new customers cab easily be served off the existing "purple
pipe" that currently supplies the two golf courses and.onevineyard. However, at this time, there
are not enough additional open space.irrigators'that,are easily accessible to the existing "purple
pipe"recycle water transmission main to consume the entire City supply of recycled water, and
therefore continued reliance.on agricultural users is needed for disposal and beneficial use of the
City's supply of recycled water: The demand for recycle water on open spaces within easy reach
of the "purple pipe" and including the Jackson Family agreement is approximately 798 acre-feet
less than that required to comply with the discharge prohibition imposed-by the Regional Water
Quality Control Board. Therefore, agricultural users are needed to dispose the 798 acre-foot
"balance" of treated effluent as the City further develops its ability-to distribute recycled water to
open space in the City.
The proposed model agricultural reuse agreement transitions the recycled water program to "user
pays" agreements as directed by Council and inaaccordance..with•the General Plan. The General
Plan 2025 includes policies and programs to transition the recycled water program from the
agricultural setting to the urban setting which entails increasing the use of tertiary treated water
from the water reclamation processes at Ellis Creek to create:additional "potable water offsets"
that will allow the City to reduce its reliance on1Sonoma County Water Agency (SCWA) water
during the summer. This fits into the water agency's_current;goals to support `local"projects
that reduce summer demand on the SCWA transmission system and water supply.
Last fall, the City terminated use of the secondary treated recycle water system and began using
only tertiary treated effluent for recycled water.. This simplified the operation of what had been a
dual secondary and tertiary recycled water system and obviated the need to construct a second
parallel transmission main on Browns Lane, saying $2.2 million in the City's CIP for Recycled
Water projects. However due to the limiting capacity of the tertiary sand filters and UV
disinfection system, the City cannot meet recycled water`peak day" flow demands in excess of
4.7 million gallons per day (mgd). This will preclude the City from using the oxidation ponds
for "winter storage" as has occurred in past years because.the.plant cannot process the higher
flow rates needed to pull stored effluent from the ponds and process the plant's daily inflow at
the same time. The proposed,CfP will include a project to increase the tertiary flow capacity to
match the plant's overall dry weather flow capacity of 62 mgd, While this.does not hinder the
City's ability to meet its permit obligations, it will reduce peak day flows available to its
customers during the heavy irrigation months of Julyand August.
Staff is in discussions with five of the six long-term agricultural users of the City recycled water
who have.indicated their desire to execute an agreement to resume delivery of recycled water as
of May 1, 2013. The draft agreement,attached would cover'a three-year term with the ability,
upon mutual consent, to extend for up to a total of two additional years. It is staff's goal to
expand the "in-town"recycled water distribution system to permit enough additional users of
SCWA supplied water to switch to using recycled water so that the delivery to the long-term
agricultural users can be phased out during that time frame. The proposed agreement would
establish-the annual minimum demand, maximum flow rates,.,and:maximum weekly delivery
volumes for the agricultural customers and require all Customers to abide by detailed delivery
schedules established by plant operations staff. The new agreements would end the former
practice of paying the long-term agricultural users for their cost of operation and maintaining
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their private irrigation systems on their property. To recap, the proposed new form agreement
for recycled water use would:
1. Set delivery price at $80 per acre-foot for recycled water. Previously, the City paid
ranchers$170 per acre-foot to take the water.
2. Set term at 3-years with two,.one-year extensions based on mutual consent. Same terms
as previous agreements.
3. Eliminate payment to ranchers for their cost of operating and maintaining their private
irrigation systems.
4. Set minimum annual delivery volume, maximum delivery flow rate, and maximum
weekly delivery volume. Previously, only minimum annual delivery volume was
addressed.
5. Require rancher to participate in periodic water delivery scheduling meetings and adhere
to the delivery schedules prepared by City staff.
6. City staff has shared the contract points with the ranchers who have indicated a desire to
• continue participating under the "user pay" program. They have not wired any major
objections except that obviously no one wishes to pay for the commodity.
The proposed item meets City Council Goal: "Achieve fiscal stability and maintain financial
sustainability."
FINANCIAL IMPACTS
The projected revenue from the proposed recycled water agreements with the long-term
agricultural users will be approximately $63,000 per year. These "user pay" agreements will
replace "payment to user" agreements with maximum annual payments totaling $219,000 per
year. Therefore, the proposed action could result in reduction of expenditures and increased
revenue totaling approximately $282,000 annually for the wastewater fund.
After the July 2013, 4.95% SCWA water rate increase, the City will-pay $705.30 per acre-foot of
water delivered. The City will set the commodity charge for potable water delivered to parks
and open spaces at about $1,490 per acre-foot after the July 1, 2013 automatic rate increase. The
City Water fund "nets" the difference of about $785 per acre-foot when it uses SCWA water to
irrigate open space. By eliminating/the use of potable water for irrigation, the Water fund will
lose the $785 per acre in "net revenue" for any new "potable water offset" from increased
recycled water use by "in-town" users. However, while the Water fund net revenue declines, the
Wastewater fund will increase its revenue by $818.93,per acre-foot for additional recycled water
deliveries to parks and open space. Therefore, the utility taken as a whole actually earns about
$34 per acre-foot more by putting its recycled water to use in the City on open space parcels like
Prince and Wiseman Parks, or Casa Grande High School. These estimates do not take into
account minor changes in the cost of maintenance and power between the two scenarios.
This summer, the City expects to apply-an additional 120 acre-feet of recycled water to open
space within the City. This should increase wastewater revenues by about $98,300, while
decreasing net revenue to the water fund by about $94,200. The financial impact to the City
General fund that pays for irrigating parks is significant. Taking into account the July 2013
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water rate adjustment, parks! irrigationsgrates would drop'from+$1,490 per acre-foot for potable
water, to only$818.93 per,acre-foot fof recycled'water: That's a 45%decrease in irrigation costs
for the two City parks,scheduled to be,converted to recycled water this spring. This amounts to a
$45,000 per year savings to the General Fund-assuming,similar levels of irrigation use as past
years. The Petaluma School District would also see,siinilar savings by putting Casa Grande
High School on recycled water.
ATTACHMENTS
•
1. Resolution
2. Agreement for Purchase and Use of Recycled Water
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•
Attachment 1
Resolution Authorizing the City Manager to Execute Agreements for
Purchase and Use of.Recycled'Water With.LoOg Term Agricultural
Customers
WHEREAS, the Regional Water Quality Control Board prohibits the City from discharging
treated effluent into the Petaluma River from May 1 to October 20; and
WHEREAS, the application of recycled water and maintenance of the City's recycled water
system is included in the Depaitnient of Public,Works and Utilities Fiscal Year 2012-2013
Operations and Maintenance Budget; and
WHEREAS, agreementsthat the City has,historically maintained with long-term agricultural
users of City recycled water for irrigation purposes involve the application of approximately 260
million gallons_(798 acre-feet) of recycled water from the City's Ellis Creek Water Recycling
Facility; and
WHEREAS, it is estimated that the annual amount of water not discharged to the Petaluma
River but instead recycled is 36% of all wastewater generated from the-City; and
WHEREAS, the City Council has directed City staff to pursue agreements for the distribution of
recycled water to agricultural customers based on a "user pay" system with rates set to recover a
portion of the City's recycled water system operating costs.as currently reflected'.in the recycled
water commodity charge set by the City Council by resolution; and
WHEREAS, continued agricultural reuse of recycled water pursuant to new"user pay" recycled
water use agreements with the City s long-term agricultural customers will support compliance
with therequirements of the Regional Water Quality Control Board through disposal/beneficial
reuse of City recycled water; and
WHEREAS, discounting the recycled water commodity chargefor long-term agricultural users
will ensure disposal of sufficient'quantities of City recycled water in accordance with the
Regional Water=Quality:Control Board discharge restrictions and conversion of the City's
recycled water distribution program to a "user pay" program, resulting in financial benefits to the
City's recycled water program;and
WHEREAS, this.action involves only the approval of modified payment terms and contract
provisions for the City's existing program of contracting to distribute recycled water to end users
within the City's existing physical system. It is n of a project for purposes of the California
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Environmental Quality Act, pursuant to Public-Resources Code.,section 21065 and CEQA
Guidelines section 15378. An EIR for the Petaluma Water Recycling Expansion Program (SCH
#2007052146) was certified by the City Council Resolution No. 2008-206 on November 3, 2008.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Petaluma that the
City Manager is authorized and directed to execute on behalf of the City Agreements for Use and
Purchase of Recycled Water with agricultural users, in a form substantially similar to the form
agreement in Exhibit A attached hereto, subjectto the review and approval of the City Attorney.
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AGREEMENT FOR THE PURCHASE;AND`USE OF RECYCLED WATER
THIS AGREEMENT (`Agreement") is made thin day of
between the City of Petaluma, a California municipal corporation ("City,") and
("Purchaser"). City and Purchaser'are;also each referred to in the singular in this Agreement as a
Party and in the plural as the Parties.
RECITALS
A. Purchaser owns and/or leases approximately acres of real property in Sonoma County,
California, identified as Assessor's Parcel No(s). , ("Property"),as further described in
Exhibit A which is attached to and made a part of this Agreement.
B. City owns and operates a-wastewater treatnient and water recycling facility, ("City
Facilities"), and collects, treats, and disposes of wastewater produced within the City's
service area.
C. City Facilities produce tertiary treated recycled water(`recycled water") for irrigation
purposes. City produces such recycled water pursuant to Order No. 96-011 of the California
Regional Water Quality Control Board, San Francisco Bay Region("Order"), which is
attached to and made a part of this Agreement as Exhibit B.
D. City desires to sell and Purchaser desires to purchase and use recycled water from City for
irrigation of Purchaser's owned and/or leased Property, subject to the terms of this
Agreement. Purchaser intends to irrigate approximately acres of to be
developed on the Property with recycled water.
In consideration of the mutual agreements, terms and conditions contained in this Agreement, the
parties agree as follows.
1.0 DEFINITIONS
Board means the California Regional Water Quality Control Board,San Francisco
Bay Region.
Director.means•the City of Petaluma's Director of Public Works and Utilities or
designee.
Irrigation'Season means the period during which Recycled Water is provided to the
Purchaser by the City pursuant to this Agreement,typically from May 1 through October 20.
Irrigated Land means the area(s) of the Property that are designated by Purchaser to
be irrigated with Recycled Water in accordance'with this Agreement.
Permit or Permits means all of the following (a) the National Pollution Discharge
Elimination System (NPDES) permit, or successor permit, establishing requirements for the
•
discharge of City treated'wastewater into the,Petaluma'River; and (b) the General Water
Reuse Order No. 96-011, or successor permit,establishing requirements for reuse of City
Recycled Water,..as maybe issued,•modifiedor reissued by the'Board.or successor
governmental agency.
. 2.0 RECITALS. The recitals above are incorporated into and made a part of this Agreement.
3.0 TERM. This Agreement:.shall become effective on the date first above written and shall
expire three (3) years thereafter, or on ("Expiration Date"), unless terminated earlier in
accordance with section 18.0. Purchaser and City may amend this Agreement in accordance
•with section 17(D) to extend the Agreement term by,wh le years up to a maximum of two
(2) additional years from the:Expiration Date. Any such extension will be based in part on
City's determination,,in its;sole discretion, that a'suffici nt supply of recycled water will be
available to serve Purchaser and users under the'iCity's urbanywater recycling program, and
other agricultural users. City shall notify Purchaser in writing byDanuary 1, , of
potential extension of the Agreement. t"
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4.0 PURCHASE PRICE. For the.term of this greement,iPurchaser will pay the City at the rate
of S80 per acre-foot ofrecycledwaater delivered`to<hePurchaser. The City shall not pay
Purchaser or grant an offset agamstttte;ppuurchase pncerfor.recycled water for Purchaser's
costs of maintaining or operatine Purchasers water system.•
, 5.0 CONNECTION FEE urchaser shllpay a yy Wd all costs of=connecting to City's recycled
water system, including,burnot limited.to, the.c st o ihe.met r; tapping of tk e main, and all
other City expenses of connecting to the"City recycled water system based on the size of the
meter needed to prode adegte.recycled Ater flow to meet requested demand at the time
the connection is made Cityi;Water connectionand.capacity fees will not apply to
Purchaser's connection'fo the Cittytecy,�cled water system. Other development of Purchaser's
property shall besublect to,all apphcabineitydevelopment-related fees.
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6.0 METERING AND MEASUREM ENT OF FLOWS. Purchaser agrees that the City shall read
the meter`~and record recycled waterused at the location where recycled water is used.
7.0 PAYMENT FOR RECYCLED WATER. City shall invoice Purchaser for the cost of
recycled waterusedby preaseron a monthly basis based on meter readings. Said invoices
shall be due and paid within 30 days of the date of billing. Delinquent invoices for recycled
water-pursuant to thiseernent, in addition to being.subject'-,to;the provisions of this
Agreement, shall be subject-to penalties, enforcement and other requirements applicable to
water service contained in Title 15 of the Petaluma Municipal.Code, as amended from time
to time.
8.0 DELIVERY AND USE OF'RECYCLED WATER..
(A) City Delivery. City agrees to deliver recycled Water to Purchaser at the irrigation
meter installed by City in accordance with this Agreement.
Agreement for Purchase and Use of Recycled Water
(iManage#20(3834.I)April 2013
(B) Minimum Recydled'Water:Usage. Purchase-ragrees.t'o use and The City agrees to
deliver aminimum of acre-feet of recycled water during the Irrigation Season,
whichs_hall be referred':to herein as the frtCommitted Volume.!' Purchaser'.s failure to
use the Committed Volume will result in.the City billing.Purchaser for an amount of
recycled water equal the difference between`Purchaser's actual use and the
Committed Volume, as liquidated damages,which amount shall be due and payable,
soelong as;P;urchaser sNtoo1use theiCommitted Volume is not due to a lack of or
interruption in supply, failure of City delivery systems or other limitations on
availability as described ih'Section 90 hereof. f•
(1) Change in.Committed Volume. ShouldPur'chaser or City desire to change the
Committed'Volume for any year, Purchaser.and City may agree to amend the
Committed-Volume by February 'l'that yearyin accordance with section 17(D).
(C) Maximum Flow Rate. The maxininnisflow rate of recycleddater the Purchaser is
permitted to use shall be- gallons per minute: Purchaseriagrees to irrigate at or
below the maximum flow rate specified in this provision. $
'.?a x,0 :C •a
(D) Maximum Weekly-Allocation. The maximum weekly volume of recycled water the
Purchaser is permitted.to use during the Img nation Season shall-not exceed
acre-feet. A Week-is defined.as'Sunday througli Saturday.
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(E) Irrigation Ltne and.Irrigation`Equrpment'. Purchaser's use of recycled water must be
s .
in accordance with all�.applicabl'etKregwremts and with the following:
(I) Connection tot-ity Pmelmei Purchaser shall design, construct, purchase and
h•
installaPurchaser's pipeline downstream of the City's'meter (i.e. Purchaser's
'ns S E , a
:tom responsib, ih,yabegmsCt,t he faceo f the meter) including box, valves, pressure
4 r' . " regulator andFany other appurtenances necessary to receive recycled water
from:the City•s.pipeline. Location of connection to City's recycled water
'SS
pipeline shall'be asapproved`by City.
(2), Hose Bibs`'`sNo hose:bibs shall be connected to:the recycled water pipeline.
(3)' 4Runoff Purchaser's on-site irrigation system must be configured and
operated top vent runoff from leaving.Irrigated Land or the Property.
(4) Identification�6tioTags. All meters, valves, blowoffs, and controllers shall be
identified�using recycled water identification tags, T. Christy Enterprises
v
3150, or equal. Tags shall be weatherproof plastic, 3-inch by 4-inch, purple in
color with,the words "RECYCLED WATER—DO NOT DRINK," or similar
printed;on,oneside, and "AQUA IMPURA—NO TOMAR," orfthe other side,
or similar as approved by the Engineer.
(5) 'Plans. Purchaser shall prepare and submit plans•for connection to City's
recycled water pipeline for portions owned and installed by Purchaser up to
the point of connection to the City's irrigation system (the irrigation meter).
City shall review plans and establish;conditions of approval.
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Agreement.for Purchase and Use of Recycled Water
I iManage#2063834.1)April 21113
■(F) Water Pressure. The pressure of recycled water delivered by City will vary and can
be as high as,approximately 110 psi. .However; the City makes no:guarantee
concerningthe pressure of deliveredrecyeled water. The City expressly disclaims
any guarantee, warranty or,representation that tiles recycled water delivered.by the
City will conform-to any particular pressure requirements of Purchaser's facilities.
Purchaser understands and agrees that-Purchaser must install pressure regulators and
any and all other appurtenances or equipment necessary to protect Purchaser's
equipment from high pressures:or surges within,the City's System or to maintain a
desired recycled water pressure for Paurchaserts system.
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(G) Purchaser's.Maintenance Responsibility. Purchaserashall operate, maintain and repair
all recycled water pipeline and appurtenances,downstream.(on the Purchaser's side)
?f3r'N "o-'tz;.. . .
of the City's irrigation meter connectingytFi City.Facilities to the Purchaser's
irrigation system. . t r:
I
(H) City's Maintenance Responsibihty�Subjectjto the terms oCthis Agreement, City shall
operate, maintain and repair City s recycled;watebfacilities an°d pipelines up to and
? . .
including the irrigation meter installed`by ity connectmg'the City.Facilities to the
Purchaser's.irrigation system. v }
(I) On-Site Supervisor. Purchaser shallsdesignate inrwnting;an on-site supervisor who is
responsible for the site and'effictent op ation,of the Purchaser's recycled water
system I .ass.n sste supervisorj shall be41�ledgeable about all:facets of Purchaser's
4.`-:1 ,,va;'a a off.
irrigation system mcludmgregulatton�s layoutrof the system, and maintenance.
Purchaser and on site s pervisor`sh°allzbe trained and certification shall be provided
by the Purchaser to thCity:as to tlis qualifications and training of the on-site
sury
peisor, to theisati'sfactionuofthe City.
{I - Scheduling a"of Usage —The City mustodispose of ippio'umately its entire daily
recycled water,production through City use and distribution to City recycled water
> customers. Purchaser agrees<to participate in recycled water delivery scheduling
i . in `r3--
meetings as ay b 3convene&by the City from time to time to coordinate recycled
w ter±delivery schedules for all users. The purpose-of such meetings is^to establish
delis cr\ seheduless nd delivery flow rates that will dispose of City's recycled water-
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and that acihe sustained by the City Facilities, and that will meet most needs'of'
recycled water;customers rThe?City will use reasonable efforts to,accommodate
recycled water'custon erst; including purchaser sreasonable regarding recycled
water'delrvery schedules and flow,rates'The determination of City recycled water
delivery schedules and flow-rates for all recycled'water customers shall be in the
City's sole discretion.. City-determined recycled Water'delivery schedules and flow
rates will govern availability'to Purchase of:recycled water under this agreement. If
Purchaser failsto participate in recycled water delivery schedule meetings in
accordance with this section, the Committed Volume pursuant to this Agreement may
be amended, or this Agreement terminated, in accordance with its terms.
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• Agreement for Purchase and Use of Recycled Water
(iManage#2063834.1)April 201
9:0 LIMITATIONS ON DELIVERY'.OF'RECYCLEDWATER.
(A) Limitations; Notwithstanding any requirements in.this.,Agreement for either party to
deliver or accept recycled water, theCity and'Purchaser understand and agree that
delivery or acceptance of recycled.water may at times be precluded,'impracticable, or
otherwise prevented or infeasible,for reasons beyond the reasonable control of City or
Purchaser. City Will not be obligated to provideand Purchaser will not be obligated
to accept recycled water when delivery or acceptance is prevented by a cause beyond
either party's reasonable control, including, but not limited to: Acts of God, shortage
of recycled water, malfunction of either party's system, temporary imbalance of
recycled water in the various storage ponds comprising part of the City Facilities,
changesin-applicable discharge or monitonng;requirements, a determination by any
regulatory agency that recycled water is notssuttab Q'or the •intended use, crop failure
or other problem with:the=crop or agricultural impfo 'v"ements related thereto which
would reasonably preclude use of recy e'd water, or adetermination or allegation by
a body of competent jurisdictionhathe use of recycledwater pursuant to the
Agreement is unlawful. The parties agree tO,cooperate in good,faith in case of an
event that wholly orpartly excuses delivery or use of recycled water pursuant to this
provision to fulfilFthe purposes of this lAgreem ntand•to restore delivery and use of
recycled water as soomassreasonably practicable. City agrees to use reasonable
efforts to provide Purchaser,with 24 hours advance notice of anticipated interruptions
in service due to construction, repairs or other causes within the City's control.
(B) Allocation?oPLimited;Suppl oofSRecycled Water, Purchaser understands and agrees
pursuant torthis provision 9:0 that Ctty does no an d cannot guarantee to Purchaser
uninterrupted supply or)use of recYeled water. In a cordance With this Agreement,
City will u se;reasonable efforts to supply to Purchaser and Purchaser will use
reasonable efforts to use recycled water so that Purchaser can use at least the
zCommrtte�d\Volumepursuant tospro sign 8.0(B);of this Agreement. In the event of a
4Q` } recycled watershortage:for any reason; City:will use reasonable efforts to equitably
•,distribute available recycled water to users, including Purchaser, who have entered
'si into recycled wa er.purchas and use agreements with City. Purchaser understands
aiidlagrees that in+caseiof a'r ycled water shortage,City may, in City's sole
discretion, allocate available recycled water giving,preference to users based on the
seniority of the use s4agreement for purchase and use of recycled water with the
City, based on tht idlume of water required by-the user, or by any other method.
10.0 MONITORING: Purchaser'will be•solely responsible for managing:and monitoring the
storage:and.distributiomof recycled water under thecontrol of Purchaser (downstream or on
the.Purchaser's side,of the City irrigation meter). So long asthis'-Agreement remains in
effect and as-a condition of receiving recycled water pursuant to this Agreement, Purchaser
hereby grants City, actingthrough:its duly authorized:employees, agents and representatives,
reasonable access'to the Property for the purpose of sampling, meter reading, and observing
as reasonably required;.Purchaser's use of recycled water. City will use reasonable efforts to
provide Purchaser (or a representative) withreasonable prior notice of any such observation
on the Property and will allow Purchaser to be present during any such access pursuant•to
•
Agreement for Purchase and Use of Recycled Water
(iManage#2063834.11 April 2013
`this provision and will use.reasonable efforts-;to avoid interfering with Purchaser's operations
on the Property.
11.0 PURCHASER OBLIGATIONS CONCERNINGSUITABILITY OF RECYCLED WATER.
(A) Regulatory Agencies. City and Purchaser understand and agree-that all recycled
water-delivered to Purchaser pursuant to-thisagreement shall'be subject to the current
and future water recycling requirements established by the Permits and other
applicable requireients. City will make available to Purchaser upon request such test
reports as are periodically required of City by regulatory agencies to characterize the
recycled water. The results of these tests are ma retained at the City's Department of
Public Works and Utilities, Environmental Di9i ibh.
f
(B) Recycled Water. Purchaser and City understand andagree that recycled water
delivered by City is filtered; and mayy;eoptain algae:and�other constituents which, if
not removed, may adversely impaceurchaser's imgation equipment. It is
Purchaser's responsibility to install and operate equipmenras?necessary to remove
constituents in recycled water del vi eared pursuant,to,this Agreement that may impact
Purchasers' irrigation or other equipment It is3Pu chaser's responsibility to properly
manage and dispose ofmatenal removed'fron recycled water by Purchaser's
equipment. t'�X°�����,
(C) Suitability. Purchaser understands andsagrees that recycled water delivered by City is
produced through;t eatment stewater t is Purchaser's responsibility to
determrnerandconfirm that quality of re lc ed water delivered by City is consistent
with water,',quahty and<`other requirements that apply to Purchaser's use of recycled
water, including but-not limited to he requirements of crops Purchaser intends to
=s
irrigate with'recycled,water
12.0 RECYCLED WATER APBLICATIONRESTRICTIONS. Purchaser agrees as a material
term ° this Agreement to userecycled water in compliance with all applicable laws,
ordinances, or regulati2 is,now ihheffect or hereafter enacted-or-adopted.- Purchaser agrees to
notify City ofknown violations oflawsand/or regulations, or damage to City irrigation
facilities o other City Facilities or property within 24 hours of discovery of such violation or
damage. Purchaser shall be',�'�olely responsible for the costof repair for damage caused by
Purchaser or Purchasers employees, agents; or contractors;or others acting on behalf of or
,axis.
under Purchaser scontco ,arising from or related to use of recycled water pursuant to this
Agreement. If Purchaser does not comply with laws, ordinances, or regulations governing
the use of recycled Water,pursuant to this Agreement, in addition to and not in lieu of any
other remedies available tothe City pursuant to this.Agreement or applicable law, City may
immediately cease,recycled water delivery pursuant to this Agreement and terminatethis
Agreement and so notify;Purchaser. In City',s sole discretion, City may,but is not required to,
grant Purchasera reasonable-time-within which to cure and correct any non-compliance
concerning use of recycled water pursuant to this:Agreement. If City grants Purchaser time
within which to cure and correct any non-compliance concerning-use of recycled water, and
Purchaser fails to cure'such non-compliance within the specified time, the.City may in its
sole discretion terminate this Agreement and so notify purchaser.
6
Agreement for Purchase and Use of Recycled Water
(iManage#2063534.1 I April 2013
13:0 TRAINING. Purchaser isresponsible for;erisiiring thatPurchaser's recycled water system
maintenance„irrigation, management;and operations staff and any that may"come into
contact with recycled water on the,Property understand:the,presence of recycled water on the
Property, that recycled water is not for,human consumption, recycled water shall not be used
as an animal water supply, and the safe use of recycled water and operation of the recycled
water system. Purchaser's on site:supervisorshall be trained and certification shall be
provided by the`Purchaser to the City as to the qualifications'and.training of the on-site
supervisor, subject to acceptance=and'approval of the City.
ate:
14.0 AGREEMENT NOT TRANSFERABLE. Neither City„nor Purchaser shall assign,
subcontract or transfer any interest in the Agreementiwitliout the prior written consent of the
a s,,,
other, and any purported:assignment, subcontractor transfer without such:consent shall be
void. Any assignment, subcontractor transfer approved by Cityshall be subject to all terms
and conditions of this Agreement.
15.0 INDEMNIFICATION. To the maximum extent permitted by law P_rchaser agrees to, at its
own expense, protect; indemnify, defend with”counsel acceptable to:Cft,(which acceptance
will not be unreasonably withheld),andbold harmers the City and:its officers, officials,
�s
employees, agents, and volunteeeers$om-and saga nst anyand-all liability, loss, damage,7 Y4aY
claims, suits, actions, arbitration proceedmgs, admmrsfrative proceedings,regulatory
proceedings, civil penalties, fines judgments, awards,'osts and expenses (including, without
limitation, claims expenses,reasonable attoreyw'srfees andcosts of litigation) of every
nature, whether actual alleged or threatened, ansmg out of oo elating to the use of recycled
> an { fti emu;: •water pursuant )this Agreement or thebreachh.of any provision of this Agreement or the
Order or the Permits by Purchaser or its directors, officers, officials, agents,'employees,
volunteers or other`siacttng of Purchasers behalf or.under Purchaser's direction.
x� cam4ti
Notwithstanding the.foregoing, Purchasers obligation to protect, indemnify, defend and hold
harmless pursuant.Eto this;provision shall not apply to failure by the City to comply with the
requirements of t}ierOrder, the Permits; or•ottier applicable legal requirements. This
r
provision will survive the termination of this Agreement.
16.0 METHOD'AND PLACE1OF GIVING NOTICE. Except as otherwise specified in this
Agreement;;alhnotices sent}pursuant to,this,Agreement shall be made in writing, and sent to
the Parties at theirrespect vet`addresses.specified below or to such other address as a Party
may designate by,; ritteRaotice delivered to the other Party in accordance with this Section.
All such notices shall`beksent by:
O l P ersonal deliverY, in which case notice is effective upon delivery;
;
(2) certified:or registered-mail, return receipt requested, in which case notice shall
be deemed delivered on receipt if delivery is confirmed by a return receipt;
(3) :nationally-recognized overnight courier;,with charges prepaid or charged to
the sender's account, in which case notice is effective on delivery if delivery
is;confirmed by the delivery'Service;;or
(4) facsimile•transmission, in which case notice shall be deemed delivered upon
transmittal,prrovided that (a) a duplicate copy of the notice is promptly
delivered by first-class or certified mail or by overnight delivery, or (b) a
7f
Agreement for Purchase and Use of Recycled Water
(iManage#2063834.1 I April 2013
transmission+report isagenerated reflecting the accurate transmission thereof.
Any notice.given by facsimile shall be considered to have been received on
the next business day if it is-received after5:00 p.m. recipient's time or on a
non-business day.
City: City Clerk
City of Petaluma
Post Office Box 61
Petaluma, California 94953
Telephone: (707)7784360
Facsimile: (707)787,84 54
And: :
Directto f'Public Worksand Utilities
City of.Petaluma. '\
202/North McDowell Boulevard:,
PetalumaCalifornia:',, 94954 ` 4
nef Telepho7a)e8-4546
' . Facsimile: (707)7784508
Purchaser`•
crkt ter_
Telephone
p g?? '^ Facstmrle: _
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17.0 MISCELLANEOUStPROVISIONS '`4;
(A)t% No Waiver o Beach. Tlit waiver by eitherParty of any breach of any term or
prom m
g ise contaedlin this Agreement shall not be deemed``-fo be a waiver of such term
or provision for any subsequent breach of the sameor•any other term or promise
contamed'sin this AA Bement.
f •"
(B) Uncertainty 3s Agreement-is the productof negotiation and compromise on the
part of both Parties. The.City and Purchaser-agree, notwithstanding:.Civil`Code
Section 1654, that in the event of uncertainty, the language is not to be construed
against the Party causing,the uncertainty to exist.
(C) No Third,`Party Beneficiaries. Nothing contained-in this Agreement shall be
consttued'to create'and.the Parties do notintend to'create.any rights in third parties.
(D) Amendment. This Agreement may only be amended bya writing.signed by persons
authorized to bind the City and Purchaser. I
8
Agicernenl for.Purchase and Use of Recycled Water
(iManage 42063834.1 i April 2013
(E) Merger: This Agreement constitutes the;entire Agreement between the City and
Purchaser.
18.0 TERMINATION. Except as expressly set forth herein, should one Party breach any of the
terms or conditions of this Agreement, the non-breaching party may provide written notice of
such breach and the effective date of termination ofithis Agreement to the other Party. In
addition, and notwithstanding any term or provision of this Agreement, if(i) Purchaser at any
time determines that the reeycleed water is not suitable for irrigation or frost protection, or
otherwise damages, or has the potential to damage the Property or improvements thereon
(including, without limitation, any livestock operationsand/for crops), (ii) Purchaser is
restricted or prohibited from using'such recycled water irrigation and/or frost protection;
(iii) Purchaser has secured an alternative non-recycled}souforrce of water for the Property; or
(iv) Purchaser has transitioned to dry land agricultural practices; then in any such event,
Purchaser shall have the right-to=terminate this NA'greement, wit out fee, penalty or liability,
upon sixty(60) days written notice to the'City as,* I*
19.0 INSURANCE. Purchaser shall, prior to this'Agreement.taking effect aitdathroughout the term
of this Agreement, maintain and,provide.evidence of insurance as required?:pursuant to
Exhibit C, which is attached a d made a part of this Agreement.
IN WITNESS WHEREOF, the Parties hereto have executed thrsadocumentthe day, month and year
first above written.W
CITY OF PETALUMA r$ PURCHASER
S t, raA By
City Manaoer
ATTEST: . , {ti
%v. Title
crn. %r.S2
City Clerk rck"''.: Address
APPROVED AS TO.FORM.
City State Zip
City Attorney Taxpayer.I.D.Number
APPROVED:
PetalumaBusiness Tax Receipt Number
Director of Public Works&Utilities
9
Agreement for Purchase and Use of Recycled Water
iManage Y,2063834.I I Amil2013
APPROVED:
Risk Manager
APPROVED:
Y:.
Finance Director qq,,ts:t.titf-'
Attachments: " v ,
• Exhibit A—Irrigable Land Property Description � ty.
Exhibit B—California RW,QCB Order 96-011 '� 4"w .
Exhibit C—Insurance Requirements f t s:: .,
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Agreement for Purchase and Use of Recycled Water
(iManagc 42063834 1)April 2013
EXHIBIT A
IRRIGABLE,LAND'.PROPERTY`DESCRIPTION
(INSERT LEGALDESCRIPTION'OF LAND TO BE IRRIGATED WITH RECYCLED WATER)
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Agreement for Purchase and Use of Recycled Water
(Manage N2063834.I I April 2013
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