53

TO:
THROUGH:
DATE:
SUBJECT:
CITY OF CARMEL-BY-THE-SEA
STAFF REPORT
MAYOR BURNETT AND COUNCIL MEMBERS
JASON STILWELL, CITY ADMINISTRATOR
2 APRIL 2013
AUTHORIZE THE CITY ADMINISTRATOR TO EXECUTE
AN AGREEMENT WITH THE MONTEREY PENINSULA
WATER MANAGEMENT DISTRICT FOR THE SALE OF
RECYCLED WATER FOR IRRIGATION OF THE 4TH
A VENUE PATHWAY
RECOMMENDED MOTION
Authorize the City Administrator to execute a recycled water agreement with the
Monterey Peninsula Water Management District to irrigate the 4th Avenue Pathway.
BACKGROUND
In 2009, the City completed the 4th A venue Riverine Habitat Restoration project, which
included a pedestrian path and native riparian landscaping. The Pathway provides a safe
and aesthetically pleasing pedestrian link to the north end of Carmel Beach, other
neighborhood pathways along San Antonio A venue, and into the residential
neighborhoods to the northeast of 4th Avenue. The Pathway is currently hand watered by
City staff with potable water. The proposed agreement would allow the City to use up to
0.5 acre-feet of surplus non-potable recycled water for irrigation of the Pathway.
The Monterey Peninsula Water Management District, the Carmel Area Wastewater
District, the Pebble Beach Community Services District, and the Pebble Beach Company
designed, financed, built and operate the wastewater reclamation project that supplies
recycled water to golf courses and other recreational open space areas of Del Monte
Forest. The City approved an encroachment permit for the pipeline in 1992 that required
the installation of a turn out capable of supplying five acre-feet/year of surplus recycled
water to Rio Park. The City would use up to 0.5 acre-feet of the allocation for the 4th
A venue Pathway as part of the proposed agreement. The City is working with the Pebble
Beach Community Services District on permitting requirements.
STAFF REVIEW
Staff recommends that Council authorize the execution of the agreement.
FISCAL IMP ACT
The City will pay the same price per unit of recycled water as the golf courses and other
recreational areas of the Del Monte Forest, which is currently $3,727 per acre-feet
($1,864 for 0.5 acre). In addition, the City will be required to install a water meter,
estimated to cost about $20,000, which is recommended for funding for fiscal year 2013-
14 within the 2013-2018 Capital Improvement Program.
ATTACHMENT
Agreement
54
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AN
AGREEMENT WITH MONTEREY PENINSULA WATER MANAGEMENT DISTRICT FOR THE
SALE OF RECYCLED WATER FOR THE IRRIGATION OF THE 4 AVENUE PATHWAY
WHEREAS, the Monterey Peninsula Water Management District, the Carmel Area Wastewater
District, the Pebble Beach Community Services District, and Pebble Beach Company (collectively, these
four entities are the "Project Proponents") designed, financed, built, and operate a wastewater reclamation
project (the "Project") that supplies high quality recycled water to irrigate the golf courses and other
recreational open space areas of the Del Monte Forest area ofMonterey County, California; and,
WHEREAS, as part of the approvals for the Project, the Project Proponents obtained an
encroachment permit from the City of Carmel-by-the-Sea for a portion of the recycled water pipeline that
passes through the City limits. One of the conditions of approval for the encroachment permit required the
Project to install a recycled water turn-out capable of supplying up to 5 acre feet/year of surplus recycled
water to irrigate property owned by the City commonly known as Rio Park; and,
WHEREAS, the City has requested that the Project Proponents allow the City to use a portion of its
future supply of up to 5 acre feet/year to irrigate landscaping next to a walking path installed by the City, and
the Project Proponents are willing to do so; and,
WHEREAS, the Monterey Peninsula Water Management District will sell the City up to a maximum
of 0.5 acre feet of recycled water to be used by the City to irrigate landscaping adjacent to a trail owned and
maintained by the City and commonly known as the 4th A venue Pathway, pursuant to an agreement for the
sale of recycled water.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA does hereby:
Authorize the City Administrator to execute an agreement for the sale of recycled water with the
Monterey Peninsula Water Management District.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
this 2"d day of April 2013 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ATTEST: SIGNED,
Heidi Burch, City Clerk JASON BURNETT, MAYOR















AGREEMENT FOR SALE OF RECYCLED WATER
between the
MONTEREY PENI NSULA WATER MANAGEMENT DI STRI CT
and the
CARMEL-BY-THE-SEA
Dated as of April 1, 2013











55

AGREEMENT FOR SALE OF
RECYCLED WATER


This Agreement for Sale of Recycled Water (Agreement) is entered into and effective as of
April 1, 2013, by and between the MONTEREY PENI NSULA WATER MANAGEMENT
DI STRI CT, a California public agency (MPWMD), and CARMEL-BY-THE-SEA, a
California City (City),

RECI TALS

A. MPWMD, Carmel Area Wastewater District (CAWD), Pebble Beach Community
Services District (PBCSD), and Pebble Beach Company (PBC) (collectively,
these four entities are the Project Proponents) designed, financed, built, and operate
a wastewater reclamation project (the Project) that supplies high quality recycled
water to irrigate the golf courses and other recreational open space areas of the Del
Monte Forest area of Monterey County, California.
B. As part of the approvals for the Project, the Project Proponents obtained an
encroachment permit from the City for a portion of the recycled water pipeline that
passes through the City limits. One of the conditions of approval for the
encroachment permit required the Project to install a recycled water turn-out capable
of supplying up to 5 acre feet/year of surplus recycled water to irrigate property
owned by the City commonly known as Rio Park.
C. The City has requested that the Project Proponents allow the City to use a portion of
its future supply of up to 5 acre feet/year to irrigate landscaping next to a walking
path installed by the City, and the Project Proponents are willing to do so.
D. This Agreement is intended to implement the terms of the Citys request.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing, the parties have agreed as follows:
1. SALE OF RECYCLED WATER.
1.1 Quantities of Recycled Water. MPWMD will sell the City up to a maximum of
0.5 acre feet of recycled water to be used by the City to irrigate landscaping adjacent to a trail
owned and maintained by the City and commonly known as the 4th Avenue Walkway. The trail
and adjacent landscaping that will be irrigated with recycled water pursuant to this Agreement
are shown on Exhibit A attached to this Agreement. In the event the Project cannot produce
enough recycled water to meet the demand of all purchasers of recycled water within the Del
Monte Forest, then the Citys right to up to 0.5 acre feet/year of recycled water may be reduced
to the amount of surplus recycled water available.
56

1.2 Charges for Recycled Water Use. The City shall pay the same price per unit of
recycled water used that is paid by the golf courses and other recreational areas in the Del Monte
Forest that purchase recycled water for irrigation.
1.3 Payment for Recycled Water. MPWMD will bill the City twice per year for its
recycled water use. The City shall pay each such invoice within 60 days of receipt. All
revenues from the sale of recycled water shall be applied by MPWMD in the same manner as
revenues received from the golf courses and other recreational areas in the Del Monte Forest.
1.4 Measurement of Use of Recycled Water. The actual use of recycled water by
the City shall be measured by a water meter installed by the City pursuant to specifications
provided by MPWMD for the purpose of measuring such use. The measurement of such use
determined by MPWMD (or its agent for purposes of billing and collection) by reading such
water meter shall be deemed to be conclusive and binding on the parties, absent manifest error.
2. TERM.
2.1 Term. This Agreement shall commence and be effective and binding on the
parties on the date stated in the opening paragraph herein. The initial term shall continue and
remain in effect until December 31, 2020. Thereafter, this Agreement may be extended by the
City for additional terms of ten (10) years each, by providing written notice to MPWMD at least
thirty (30) days prior to the end of each such term.
2.2 Termination by City. The City has the right to terminate this Agreement at any
time for any reason on thirty (30) days written notice to MPWMD. MPWMD has the right to
terminate this Agreement only for cause.
3. I RRI GATI ON SYSTEM.
3.1 Recycled Water I rrigation Area Ownership and Operation. The City is the
owner of the irrigation system, the trail, and the adjacent landscaping. The City shall be
responsible for the operation, including, without limitation, maintenance and repair, of the
irrigation system and for all related costs and expenses.
3.2 Permits. If determined to be necessary by MPWMD, CAWD, or PBCSD, the
City shall (a) timely execute and file applications for any permits necessary to use the recycled
water on the Citys property, and (b) timely satisfy and comply with all terms and conditions of
all such permits. The City shall at all times maintain the Permits in full force and effect at its own
expense.
4. MI SCELLANEOUS.
4.1 Standard of Reasonableness for Approvals. Whenever in this Agreement any
party has the right to approve or consent to any matter, such approval or consent shall not be
unreasonably withheld or delayed.
4.2 Further Assurances. Each of the parties agrees to execute, and deliver to the
other parties, such documents and instruments, and take such actions, as may reasonably be
required to effectuate the terms and conditions of this Agreement; provided, however, such
covenant shall not have the effect of increasing the obligations of any party pursuant to this
Agreement or require any representations and warranties by any party in addition to those of
57
such party set forth herein.
4.3 Relationship of the Parties. Nothing in this Agreement shall create a joint
venture, partnership or principal-agent relationship between or among any of the parties.
4.4 Notices. Whenever any matter herein provides for notice or other communication
to be given to any of the parties, such notice shall be in writing and given to the persons, and at
the addresses, designated below for such party, or to such other person or other address as such
party shall provide, in writing, to the other party. All notices may be given by being personally
delivered or placed in the United States mail, postage prepaid, certified or registered mail, sent
by facsimile transmission, or sent by overnight delivery service, addressed to the party to whom
notice is to be given. Each such notice shall be deemed to be effective upon receipt, if personally
delivered, sent by facsimile transmission or sent by airfreight, or five (5) days after being so
mailed.
If to MPWMD: If to Buyer:
Monterey Peninsula Water Carmel-By-The-Sea
Management District PO Box CC
5 Harris Court, Bldg. B Carmel-By-The-Sea, CA 93921
Monterey, CA 93940 Attn.: City Manager
P.O. Box 85
Monterey, CA 93942-0085
Attn.: General Manager

4.5 Exhibits. All exhibits referenced in and attached to this Agreement are hereby
incorporated herein and made a part of this Agreement, for all purposes, by this reference.
4.6 Assignment. This Agreement shall be binding upon, and inure to the benefit of,
the successors and permitted assigns of the parties.
4.7 Severability. If any provision of this Agreement is declared invalid or
unenforceable in any jurisdiction by a court of competent jurisdiction, then such portion or
provision shall be deemed to be severable, to the extent invalid or unenforceable, from this
Agreement as to such jurisdiction (but, to the extent permitted by law, not elsewhere) and shall
not affect the remainder hereof.
4.8 Waiver. No waiver of any right or obligation of any of the parties shall be
effective unless in a writing, specifying such waiver, executed by the party against whom such
waiver is sought to be enforced. A waiver by any of the parties of any of its rights under this
Agreement on any occasion shall not be a bar to the exercise of the same right on any subsequent
occasion or of any other right at any time.

4.9 Headings and Titles. The designation of a title, or a caption or a heading, for
each section of this Agreement is for the purpose of convenience only and shall not be used to
limit or construe the contents of this Agreement.
4.10 Amendment or Modification. This Agreement may be amended, altered, or
modified only by a writing, specifying such amendment, alteration or modification, executed by
58
all of the parties hereto.
4.11 Counterparts. This Agreement may be executed in two (2) or more counterparts,
each of which shall be deemed an original, but all of which shall constitute one (1) and the same
instrument.
4.12 Entire Agreement. This Agreement constitutes the entire agreement between the
parties regarding the subject matter hereof and thereof, and supersedes all prior or
contemporaneous negotiations, understandings or agreements of the parties, whether written or
oral, with respect to such subject matter.

IN WITNESS OF THE FOREGOING, this Agreement has been executed by the officers
of each of the parties effective the date first shown above.


Monterey Peninsula Water Carmel-By-The-Sea, a
Management District, a California City
California public agency


By: _____________________ By: __________________________

Name: David Stoldt Name: J ason Stilwell
Its: General Manager Its: City Manager
59
Exhibit A
City of Carmel-by-the-Sea 4th Avenue Walkway Project
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