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HomeMy WebLinkAboutA5142 - DESERT WATER AGENCY SEWER SERVICE OUTSIDE CITY LIMITS DREAM HOMES AND PALM OASIS AREAS Desert Water Agency Sewer service outside City limits A5142 SEWER SERVICE AGREEMENT MO 7720, 07-20-05 FOR AREAS OUTSIDE CITY LIMITS (DREAM HOMES AND PALM OASIS AREAS) This Agreement is effective as of the 2nd clay of August, 2005, between the Desert Water Agency(hereinafter called"Desert")and the City of Palm Springs(hereinafter called "City"). RECITALS A. Desert provides retail water service to customers located within Desert's boundaries, including all of the citizens and businesses located within the City. Desert also provides reclaimed water service to a number of customers located within the City,including (among others)privately owned golf courses, Palm Springs High School, and the City itself for irrigation of Demuth Park and the City's municipal golf course. B. The City provides wastewater service to all of the citizens and businesses located within the boundaries of the City, and also to some customers located outside of the City. The City's wastewater treatment plant produces secondary effluent which is delivered to Desert's reclamation plant located adjacent to the City's wastewater treatment plant, for tertiary treatment, reclamation and use in lieu of potable water to irrigate turf and landscaping. The use of reclaimed water in lieu of potable water to irrigate golf courses, parks, turf and landscaping farthers the water conservation objectives of both the City and Desert, and benefits the citizens, customers and property owners of both the City and Desert. C. Desert is legally authorized to provide sewer service within its boundaries,and currently provides sewer collection services to a portion of the City of Cathedral City. Pursuant to agreement between Desert and the Coachella Valley Water District("CVWD"), the waste collected by Desert in Cathedral City is delivered to CVWD for treatment in CVWD's wastewater treatment plant, and is then reclaimed by CVWD for re-use as reclaimed water within CVWD's service area. D. The City of Cathedral City has asked Desert to also provide sewer services for development proposed within the area identified on Exhibit "A" attached hereto and incorporated herein (the "Dream Homes Area"), which is also located within Desert's boundaries. In addition, Desert has been asked to provide sewer services for development proposed in the area identified on Exhibit"B" attached hereto and incorporated herein (the "Palm Oasis Area"). Although Desert's agreement with CVWD would allow Desert to collect waste within the Dream Homes Area and the Palm Oasis Area and then deliver the waste to CVWD for treatment, reclamation and re-use within CVWD's service area,Desert and City would prefer to deliver the collected waste to the City for treatment, with the secondary effluent then available for reclamation by Desert at its reclamation plant located within the City's boundaries. Thus, the reclaimed water would be retained for re-use within the City and Desert, and would not be lost to CVWD for its use within its service area. E The use of reclaimed water in lieu of potable water to irrigate golf courses, parks, turf, and landscaping in the City is extremely important and furthers the water conservation objectives of both the City and DWA. This Agreement is in furtherance of such policy goals and is in the public's best interest in it provides an opportunity for the City to U11 /UWAAGNLS/FinalS—,1,n.A••mrt PS -2- receive additional reclaimed water resources for the benefit of property owners and customers of both the City and DWA. F. Desert has conducted feasibility studies which demonstrate that the waste to be generated by the proposed development in the Dream Homes Area and the Palm Oasis Area will produce average flows of less than 600,000 gallons per day and combined peak flows of less than 1,000,000 gallons per day. The City has capacity currently available in its wastewater treatment plant and related facilities to accommodate the delivery and treatment of these additional flows. G. Desert proposes to assume responsibility for ownership,operation,maintenance and repair of the sewage collection facilities necessary to provide sewer service within the Dream Homes Area and the Palm Oasis Area; to deliver the waste thus collected into the City's existing trunk line facilities for transportation to and treatment at the City's wastewater treatment plant;to pay the City's wastewater treatment sewer fund the same amounts that the City would receive in the form of capacity charges and service charges for the provision of such service to sewer service customers within its own boundaries; and to share the value of the reclaimed water retained for the general benefit of Desert and the City by paying to the City the lump sum of$200,000 for the general benefit of the City's citizens, residents, and property owners. The City has agreed to Desert's proposal, upon the terms hereinafter set forth. [ /DWAAGNITS,F FJi-, A,,1,cra -3- AGREEMENT Based upon the foregoing facts, and in consideration of the mutual covenants of the parties, it is hereby agreed as follows: 1. Construction of In-Tract and Off-Site Facilities. The City agrees to accept into its wastewater system and treat waste collected by Desert within the Dream Homes Area and the Palm Oasis Area, at a maximum rate of flow not to exceed 1,000,000 gallons per day. Desert shall adopt,maintain and enforce standard specifications for the construction of sewer facilities, and rules and regulations for the control of waste,which shall be as comprehensive and stringent as those established by the City and in effect within the City's boundaries. Desert will require each developer of property within the Dream Homes Area and the Palm Oasis Area to construct in-tract sewage collection facilities required to serve such property, and also whatever off-site facilities may be necessary to transport the waste therefrom to the City's trunk sewer at locations mutually acceptable to the City and Desert. The cost of all connections and any additional work or improvements reasonably determined by City to be necessary to accommodate the delivery and treatment of flows from the Dream Homes and Palm Oasis Areas shall be borne by Desert. All in-tract and off-site facilities outside the corporate limits of the City shall be designed and constructed in accordance with Desert's specifications, and its ordinances, rules and regulations. Plans and specifications for such work shall be subject to approval by Desert and City,and construction of all facilities shall be subject to inspection by Desert and City.. Desert shall require the developer of any such property to pay the prevailing charges to Desert and the City,respectively, for any such plan checking and inspection services.Desert's rules and regulations shall require the developer to UJI IA)N',AGNIrS/rinnl Servci,ery W,o(IS 4- notify and obtain the City's approval before any connection into the City's trunk line sewer is made. 2. Bond Requirements. The developer of any property shall provide such bonds or other security as Desert or the City may require in order to assure construction of required sewer facilities.Until such security has been provided, or the facilities have been accepted by Desert and the City, neither party shall be required to give assurances to any governmental agencies that sewer service will be provided to the property. 3. Transfer of Title to Facilities. Upon satisfactory completion of the construction work required under Paragraph 7, as determined by the parties hereto, the developer shall convey to Desert the title to all in-tract and off-site facilities constructed by the developer outside the City's corporate limits and to the City all facilities constructed by the developer within the corporate limits of the City.. Title shall be free and clear of all mechanic's liens,or other liens or encumbrances of any kind, and the developer shall provide such evidence of clear title as may be required by the parties. The developer shall also obtain and/or convey appropriate rights of way for such facilities. All instruments of conveyance shall be in the form approved by Desert or the City as the case may be.. 4. Capacity Charge. Desert shall collect from each developer whose property is provided with sewer service under the terns of this Agreement the standard sewer capacity charge established by the City in the City's Fee Resolution, as may be amended from time to time, for connections within the City and in effect at the time application for service is made, and shall transmit such funds to the City. 5. Sewer Service. Upon acceptance of the required sewer facilities, and subject to payment of rates and charges and compliance with all conditions of this Agreement,Desert and the City shall provide sewer service to those developments which have been connected to the City's wastewater system. Desert shall operate and maintain all sewer facilities outside the City's corporate limits constructed under this Agreement. Once sewage has been delivered into the City's trunk sewer system, the City shall provide for the transportation, treatment and disposal of such sewage. Upon 90 days written notice to the City,Desert shall have the right to take over the full responsibility of providing sewer service, including treatment and disposal of the sewage,to any development served under this Agreement, and thereafter the City shall have no further obligations under this Agreement. Desert shall be responsible for all costs associated with Desert's assumption of such responsibility,including any costs for modifications to any portion of the Desert's or the City's sewer facilities. 6. Customer Charges. Desert shall be responsible for billing and collecting all rates and charges for sewer service furnished to any developments served under this Agreement, and for transmitting to the City its share of such funds as provided herein. A monthly charge for services provided by Desert and the City under this Agreement shall be made for each dwelling unit or equivalent dwelling unit connected to the sewer system. The City's portion of such charge shall consist of its standard charge for sewer service provided within the City's boundaries as established by the City in its Fee Resolution as it may be amended from time to time.. The City shall give Desert 60 days advance notice of any change in its service charges. In addition to such charges for City services,the total monthly charge to customers served under this Agreement shall include whatever sum may be determined by M F'IMA aUMN/I iiial Sc„crpery Acml CPS -6- Desert to be necessary to cover its costs for operating and maintaining the facilities, and for billing, collecting and administering the terns of this Agreement. Desert shall take all reasonable measures to collect any delinquent accounts, and shall have the right to discontinue service pursuant to its rules and regulations, and all provisions of law, in case of any delinquency. However,Desert shall be required to pay to the City its charges for service, irrespective of whether such amounts are collected from the customers. This obligation shall be subject to any court determination affecting the validity of the City's charges. The term "dwelling unit" as used in this Agreement shall mean a single family residence as such term is defined and/or understood pursuant to the City's Fee Resolution as amended from time to time 7. Sharing of Value of Reclaimed Water. Desert shall share the value of reclaimed water resources preserved for the general benefit of the citizens, residents, and property owners of both the City and Desert, as a result of this Agreement,by making a one- time payment of $200,000 to the City within 30 days after execution of this Agreement. Desert acknowledges that the City may execute this Agreement only after its City Council has adopted a resolution or minute order authorizing such execution. It is understood that City Council approval of such resolution or minute order shall be deemed approval of the provision of service upon the terms, rates and charges set forth herein, pursuant to Section 15.24.030 of the City's Municipal Code. EXECUTED by the duly authorized officers of the parties hereto, and effective upon the date entered. ATTEST: DESERT WATER A E CY By: �JSecretary President of the Board of Directors ATTEST: CITY OF PALM SPRINGS �/j� Clerk Mayor " APPROVED BY CITY COUNCIL AS1i -Z . ,JI I/DN4 n Ghi IS'J I Ild I S6001 Sen Aynu CPS —O— 1 a II III IIT _� II I HIM • = G = Q - L o h \ wmm t�luRm EXHIBIT "A° DWG.sY DATE: SCALE CATHEDRAL CITY sEs osros N.T.S. DREAM HOME AREA DESERT WATER SHEET DESERT WATER AGENCY 416 1 OF 1 PALM SPRINGS, CALIFORNIA c�wa�o�x� sr �r F N� cN w� r Np A 4 1 EXHIBIT "B" DWG' BY DATE: SCALE SES ow N.T.S. PALM OASIS AREA DESERT WATER SHEET ]DESERT WATER AGENCY ON 1 OF 1 PALM SPRINGS, CALIFORNIA c:\ero\edmoo.��v. �� PAEM Sp �V MEMORANDUM W R i Y graprsco°1T TO: Troy Butzlaff Assistant City Manager FROM: Cindy Berardi Deputy City Clerk DATE: August 11, 2005 SUBJECT: Desert Water Agency A5142 Attached are two copies of the above referenced agreement, fully executed. We have retained the original in our files. Please call me at ext. 8355 if you have any questions. (cab ,Attach. DESERT WATER AGENCY LETTER or u R a WMAL 1200 GENE AUTRY TRAIL SOUTH P.O. BOX 1710 PALM SPRINGS,CA 92263-1710 DATE: 08/02/05 W.O.# (760)323-4971 FAX(760)325-6505 TO: City of Palm Springs ATTENTION: Troy Butzlaff RE: Sewer Service Agreement COURIER TO WHOM IT MAY CONCERN, WE ARE SENDING YOU: COPIES DATE NO. DESCRIPTION Original-Sewer Service Agreement for Areas Outside City Limits (Dream Homes and Palm Oasis Areas) dated August 2, 2005 THESE ARE TRANSMITTED AS CHECKED BELOW: ❑ For approval ❑ Approved as submitted ❑ Resubmit copies for approval M For your use ❑ Approved as noted ❑ Submit copies for distribution ❑ As requested ❑ Returned for correcfions ❑ Return corrected prints ❑ For review and comment ❑ For Recordation ❑ ❑ For bids due 20 ❑ Prints returned after loan to us REMARKS: DESERT WATER AGENCY COPY TO: GamcORRESPiwKER SIGNED: Dave Luker General Manager-Chief Engineer