HomeMy WebLinkAboutAgenda Report - June 15, 2005 K-03AGENDA ITEM K" 03
Ah CITY OF LODI
COUNCIL COMMUNICATION
7M
AGENDA TITLE: Authorize City Managerto Execute Industrial Waste Connection Memorandum of
Understanding with Van Ruiten Family Winery as Downtown Revitalization
Business Attraction Incentive
MEETING DATE: June 15,2005
PREPARED BY: Public Works Director
RECOMMENDED ACTION: That, as an ongoing Downtown Revitalization measure, the City Council
authorize the City Manager to execute the Memorandum of Understanding
with the Van Ruiten FamilyWinery.
BACKGROUND INFORMATION: The City has been approached by the Van Ruiten Family Winery to allow a
wastewater connection to the City's industrial wastewater system. The City
has previously included wastewater -related incentives in the Central City
Revitalization Program to encourage business reinvestment in
Downtown. Recognizing the positive economic impact and tourism potential of the winery business in our area,
and in an attempt to enhance the Downtown Revitalization Program, City staff worked with the Van Ruitensto
develop the attached Memorandum of Understanding to continue with implementation of the Revitalization
Program. The basics points of the proposed MOU are:
1. The Winery will open a tasting room (or equivalent) in the Lodi Downtown. An option to pay an annual
$40,000 in -lieu fee for up to six years is also provided.
2. The City will consider amending the Municipal Code to allow industrial waste connections outside the
City limits under limited circumstances.
3. The Winery will obtain a discharge permitfrom the City with various discharge limitations and conditions
and will pay 150 percent of the standard rate for industrial discharge (approximately $4,100 annually
based on estimated flow and strength). One-time capacity charges would also apply (approximately
$15,000). Note, per previous Council policy direction, the 50% surcharge will go to the General Fund.
4. The Winery may not assign nor accept waste from others without the City's permission.
The connection would be for winery processing water only, not domestic waste. The winery is located at
340 West Highway 12, immediately adjacent to the western General Plan boundary, and the City's pipeline
traverses Van Ruiten property. The City and its consultants, West Yost & Associates, have reviewed
preliminary information on the volume and strength of the winery wastewater and have concluded the City can
accommodate this request with our existing facilities, noting that the plans for future improvement at White
Slough do include aeration improvementsto the storage ponds. If approved, the City will proceed with
environmental review and consideration of an ordinance revision. The Winery will bear all the costs of
connection and other permits.
FISCAL IMPACT: The City will receive direct and indirect benefits from new business investment in
Downtown and capitalizing on the wine industrywhich will attracttourists Downtown.
FUNDING AVAILABLE: Not applicable.
Richard C. Prima, Jr. ��
PubllcWorks Director \`
RCPIpmf
Attachment
cc Van Ruiten Family Winery
APPROVED:
Blair King, Manager
J ICOUNCIL1051VanRuitenMOU doc 6/812005
Van Ruiten Winery
Industrial Waste Connection Memorandum of Understanding
THIS AGREEMENT is entered into this 7th day of June, 2005, (the "Effective
Date"), between Van Ruiten Family Winery, LLC (" Winery") and the CITY OF LODI, a
municipal corporation organized and existing under the laws of the State of California
("City").
RECITALS
This Agreement is predicated upon the following findings:
A. Winery is the owner of a Wine Production Facility located at 340 W.
Highway 12, San Joaquin County, California which is outside the corporate limits of the
City of Lodi. Winery intends to submit an application to connect and discharge their
Industrial Waste to the City's Industrial Waste line. ("Project")
B. Lodi's current municipal code prohibits wastewater service to facilities or
properties outside the city limits. (LMC 13.12.150) The City is willing to consider
amending its Code to permit acceptance of Winery's Industrial Wastewater based on the
terms and conditions of this agreement.
C. The Parties acknowledge that the California Environmental Quality Act
may require Environmental Review of this project and that this agreement is not a
connection agreement, and does not commit them to enter a connection agreement at
some later date, absent compliance with the California Environmental Quality Act.
D. The Parties further acknowledge that a municipality cannot contractually
bind itself to amend its municipal code and that this agreement does not bind the City to
do so.
E. The Parties finally acknowledge that the connection may be subject to
review, condition and approval of the California Regional Water Quality Control Board.
NOW THEREFORE, the parties agree as follows:
Definitions. Unless otherwise defined in this agreement, all capitalized terms will
have the definitions ascribed to them in Lodi Municipal Code Section 13.12.020.
a. "Downtown Lodi" means the area bordered by Church Street, Lodi
Avenue, Union Pacific Railroad and Lockeford Street.
2. Consideration of Connection. Lodi will consider amending its Municipal Code to
permit Winery to connect to the City's Industrial Waste line on the terms and
conditions set forth in this agreement.
3. Terms of Connection. Any connection permitted pursuant to the Agreement shall
contain the following minimum terms:
a. Permit: Winery shall comply with the terms of the Industrial System
Discharge Permit to be issued by the City which will include but not be
limited to limitations on maximum flow, BOD, ph, TDS and suspended
solid concentrations and prohibitions on discharge of hazardous waste in
conformance with the City's NPDES Permit.
b. Average Daily Flow: Average Daily Flow shall not exceed 1.1 million
Gallons per Year at 9,000 mg/L BOD (11,000 mg/L maximum).
C. Rate/Surcharge: Winery's rate for discharge shall be set at 150 percent
of the City's standard published rate for Industrial Waste.
d. Capacity Charge: Winery shall pay a one-time capacity charge based on
annual flow and BOD loading prior to connection. Current rates are
$6,260.67 per Million Gallons capacity and $131.80 per 1,000 lbs of BOD.
These rates are subject to change and will be set at the time Winery
submits its application to connect to the Industrial Waste line. In addition,
applications by Winery for increases in permitted capacity will, if granted,
be charged at then current rates.
e. Non -Assignment: Winery may not sell capacity or accept wastewater
from other locations without the express written consent of the City. City
shall have sole and absolute discretion in making this determination.
Downtown Tasting Room: Winery shall open and operate a tasting room
in Downtown Lodi during the entire term of its connection to the City's
sewer system. The tasting room shall be operated within the following
minimum requirements:
The tasting room shall be at least 500 square feet and have wine
available for tasting and sale, wine related merchandise for sale
and be open a minimum of 40 hours per week, including Saturday
and Sunday.
As an alternative to opening a tasting room, winery may, at its
option, open a Wine Related Establishment in Downtown Lodi. As
used herein Wine Related Establishment shall include restaurants,
wine bars, and retail establishments selling wine or wine products.
iii) If this condition cannot be met within eighteen months of
connection, Winery shall pay an annual downtown development
and promotional in—lieu fee in the amount of $40,000.00. The fee
shall be retroactive for one year and shall be assessed annually
(until such time as the requirements of subsections i or ii of this
paragraph have been satisfied) as annually adjusted according to
the Bay Area -All Items Consumer Price Index. If condition i or ii
above cannot be met within six years of connection, this
2
Agreement will terminate and Winery will be required to make
alternate arrangements for its wastewater.
4. Binding Effect of Agreement. Winery's obligations under paragraph three of this
Agreement will only be triggered if 1) the Lodi Municipal Code Section is
amended to permit Winery to connect to the Industrial Sewer Line; and 2) All
other approvals necessary to secure the connection are secured. All other
obligations.
5. Reimbursement. Winery shall reimburse the City for all costs incurred by the City
in connection with the Project including but not limited to costs associated with
securing environmental review of the project, securing California Regional Water
Quality Control Board approval of the project, implementing mitigation measures
required by the California Environmental Quality Act, and complying with
requirements of the Regional Water Quality Control Board in excess of current
standards. The City will provide Winery with an estimate of these costs in
advance of connection. Winery shall deposit the estimate with the City within 30
days of receiving the estimate. City will bill all costs against the deposit. In the
event the deposit is exceeded, Winery shall pay the difference to the City within
30 days of notice. Any excess will be refunded to Winery within 30 days of
connection.
6. Construction. Winery shall be solely responsible for acquiring the right of way,
permits and constructing the lateral line to connect to Lodi's Industrial Waste line.
Once constructed, Winery shall remain solely responsible for the maintenance
and repair of its lateral.
7. Relationship of Parties.
a. It is understood that the contractual relationship between the City
and Winery is such that Winery is an independent contractor and
not the agent of the City; and nothing herein shall be construed to
the contrary.
b. City and Winery agree that nothing contained herein or in any
document executed in connection herewith shall be construed as
making Winery and City joint venturers or partners.
This Agreement is made and entered into for the sole protection
and benefit of the parties and their successors and assigns. No
other person shall have any right of action based upon any
provision in this Agreement.
8. No Entitlements Granted. Nothing in this Agreement shall provide Winery with
any right to secure approval of any connection or other entitlement. In addition,
Winery agrees that it will have no rights to: select the Environmental Review
Consultant, if one is required; or direct the work, response times,
recommendations or approvals of the Consultant.
9. Notices. All notices required or provided for under this Agreement shall be in
writing and delivered in person or sent by certified mail, postage prepaid, return
receipt requested, to the principal offices of the City and Winery and its
representative and Winery's successors and assigns. Notice shall be effective
on the date it is delivered in person, or the date when the postal authorities
indicate the mailing was delivered to the address of the receiving party indicated
below:
Notice to City: City of West Lodi
City Manager
221 W. Pine St
Lodi. CA 95240
Notice to Winery: Van Ruiten Family Winery, LLC
340 West Highway 12
Lodi, CA 95242
10. Indemnification, Defense and Hold Harmless.
a. Winery agrees to and shall indemnify, defend and hold the City, its
council members, officers, agents, employees and representatives
harmless from liability for damage or claims of damage, for personal
injury, including death, and claims for property damage which may arise
from this agreement.
b. Winery's obligation under this section to indemnify, defend and hold
harmless the City, its council members, officers, agents employees, and
representatives shall not extend to liability for damage or claims for
damage arising out of the sole negligence or willful act of the City, its
council members, officers, agents, employees or representatives. In
addition, Winery's obligation shall not extend to any award of punitive
damages against the City resulting from the conduct of the City, its
council members, officers, agents, employees or representatives.
C. With respect to any action challenging the validity of this Agreement or
any environmental, financial or other documentation related to approval of
this Agreement, Winery further agrees to defend, indemnify, hold
harmless, pay all damages, costs and fees, if any incurred to either the
City or plaintiff (s) filing such an action should a court award plaintiff(s)
damages, costs and fees, and to provide a defense for the City in any
such action.
0
IN WITNESS WHEREOF this Agreement has been executed by the parties on
the day and year first above written.
CITY OF LODI, a municipal corporation VAN RUITEN FAMILY WINERY, LLC
BLAIR KING
City Manager
ATTEST:
SUSAN J. BLACKSTON
City Clerk
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER
City Attorney
B�:'-John Van Rditen '
Its: Owner
Van Ruiten Winery Industrial Wastewater Connection Points
1. Community will receive additional tasting room Downtown
2. City will receive additional revenue from out -of -city rate surcharge
3. Winery will receive wastewater service, subject to permit terms
(wastewater volume, strength & constituents)
4. Winery property owner agrees to future annexation at City's discretion
S. Winery will bear all costs of connection
6. No entitlements granted by MOU; environmental review required
AW3
Van Ruiten Winery
Industrial Waste Connection Memorandum of Understanding
THIS AGREEMENT is entered into this 7th day of June, 2005, (the "Effective
Date"), between Van Ruiten Family Winery, LLC (" Winery") and the CITY OF LODI, a
municipal corporation organized and existing under the laws of the State of California
("City„).
RECITALS
This Agreement is predicated upon the following findings:
A. Winery is the owner of a Wine Production Facility located at 340 W.
Highway 12, San Joaquin County, California which is outside the corporate limits of the
City of Lodi. Winery intends to submit an application to connect and discharge their
Industrial Waste to the City's Industrial Waste line. ("Project")
B. Lodi's current municipal code prohibits wastewater service to facilities or
properties outside the city limits. (LMC 13.12.150) The City is willing to consider
amending its Code to permit acceptance of Winery's Industrial Wastewater based on the
terms and conditions of this agreement.
C. The Parties acknowledge that the California Environmental Quality Act
may require Environmental Review of this project and that this agreement is not a
connection agreement, and does not commit them to enter a connection agreement at
some later date, absent compliance with the California Environmental Quality Act.
D. The Parties further acknowledge that a municipality cannot contractually
bind itself to amend its municipal code and that this agreement does not bind the City to
do so.
E. The Parties finally acknowledge that the connection may be subject to
review, condition and approval of the California Regional Water Quality Control Board.
NOW THEREFORE, the parties agree as follows:
Definitions. Unless otherwise defined in this agreement, all capitalized terms will
have the definitions ascribed to them in Lodi Municipal Code Section 13.12.020.
a. "Downtown Lodi" means the area bordered by Church Street, Lodi
Avenue, Union Pacific Railroad and Lockeford Street.
2. Consideration of Connection. Lodi will consider amending its Municipal Code to
permit Winery to connect to the City's Industrial Waste line on the terms and
conditions set forth in this agreement.
3• Terms of Conni—donn. Any connection permitted pursuant to the Agreement shall
contain the following minimum terms:
a. Permit: Winery shall comply with the terms of the Industrial System
Discharge Permit to be issued by the City which will include but not be
limited to limitations on maximum flow, BOD, ph, TDS and suspended
solid concentrations and prohibitions on discharge of hazardous waste in
conformancewith the City's NPDES Permit.
b. Average Daily Flow: Average Daily Flow shall not exceed 1.1 million
Gallons per Year at 9,000 m91L BOD (11,000 mg/L maximum).
C Rate/Surcharge: Winery's rate for discharge shall be set at 150 percent
of the City's standard published rate for Industrial Waste.
d. Capacity Charge: Winery shall pay a one-time capacity charge based on
annual flow and BOD loading prior to connection. Current rates are
$6,260.67 per Million Gallons capacity and $131.80 per 1,000 lbs of BOD.
These rates are subject to change and will be set at the time Winery
submits its application to connect to the Industrial Waste line. In addition,
applications by Winery for increases in permitted capacity will, if granted,
be charged at then current rates.
e. Non -Assignment: Winery may not sell capacity or accept wastewater
from other locations without the express written consent of the City. City
shall have sole and absolute discretion in making this determination.
Downtown Tasting Room: Winery shall open and operate a tasting room
in Downtown Lodi during the entire term of its connection to the City's
sewer system. The tasting room shall be operated within the following
minimum requirements:
i} The tasting room shall be at least 500 square feet and have wine
available for tasting and sale, wine related merchandise for sale
and be open a minimum of 40 hours per week, including Saturday
and Sunday.
As an alternative to opening a tasting room, winery may, at its
option, open a Wine Related Establishment in Downtown Lodi. As
used herein Wine Related Establishmentshall include restaurants,
wine bars, and retail establishments selling wine or wine products.
iii) If this condition cannot be met within eighteen months of
connection, Winery shall pay an annual downtown development
and promotional in–lieu fee in the amount of $40,000.00. The fee
shall be retroactive for one year and shall be assessed annually
(until such time as the requirements of subsections i or ii of this
paragraph have been satisfied) as annually adjusted according to
the Bay Area -All Items Consumer Price Index. If condition i or ii
above cannot be met within six years of connection, this
2
Agreement will terminate and Winery will be required to make
g_ Annexation. Winery, in consideration for receiving City sewer service, will
consent to the annexation to the City of Lodi of the subject property,
waives any right to protest the annexation and assigns to the CITY any
right to vote on the annexation. Annexation shall occur when and if the
CITY deems the annexation of the subject property feasible and
advisable. In the event the annexation is sought by Winery, Winery
agrees to pay CITY an amount to cover the subject property's
proportionate share d the costs to conduct the annexation. In the event
that the Winery does ultimately connect to City service, Winery agrees to
enter into a short form memorandum of agreement expressing the
obligations of this paragraph in recordade form.
4. Binding Effect of Agreement. Winery's obligations under paragraph three of this
Agreement will only be triggered if 1) the Lodi Municipal Code Section is
amended to permit Winery to connect to the Industrial Sewer Line; and 2) All
other approvals necessary to secure the connection are secured. All other
obligations.
5. Reimbursement. Winery shall reimburse the City for all costs incurred by the City
in connection with the Project including but not limited to costs associated with
securing environmental review of the project, securing California Regional Water
Quality Control Board approval of the project, implementing mitigation measures
required by the California Environmental Quality Act, and complying with
requirements of the Regional Water Quality Control Board in excess of current
standards. The City will provide Winery with an estimate of these costs in
advance of connection. Winery shall deposit the estimate with the City within 30
days of receiving the estimate. City will bill all costs against the deposit. In the
event the deposit is exceeded, Winery shall pay the difference to the City within
30 days of notice. Any excess will be refunded to Winery within 30 days of
connection.
6. Construction. Winery shall be solely responsible for acquiring the right of way,
permits and constructing the lateral line to connect to Lodi's Industrial Waste line.
Once constructed, Winery shall remain solely responsible for the maintenance
and repair of its lateral.
7. Relationshipof Parties.
a. It is understood that the contractual relationship between the City
and Winery is such that Winery is an independent contractor and
not the agent of the City; and nothing herein shall be construed to
the contrary.
b. City and Winery agree that nothing contained herein or in any
document executed in connection herewith shall be construed as
making Winery and City joint venturers or partners.
C. This Agreement is made and entered into for me -,oar- p ojer:fi(►r)
and benefit of the parties and their successors and assigns. No
other person shall have any right of action based upon any
provision in this Agreement.
a. No Entitlements Granted. Nothing in this Agreement shall provide Winery with
any right to secure approval of any connection or other entitlement. In addition,
Winery agrees that it will have no rights to: select the Environmental Review
Consultant, if one is required; or direct the work, response times,
recommendations or approvals of the Consultant.
9. Notices. All notices required or provided for under this Agreement shall be in
writing and delivered in person or sent by certified mail, postage prepaid, return
receipt requested, to the principal offices of the City and Winery and its
representative and Winery's successors and assigns. Notice shall be effective
on the date it is delivered in person, or the date when the postal authorities
indicate the mailing was delivered to the address of the receiving party indicated
below:
Notice to City: City of West Lodi
City Manager
221 W. Pine St
Lodi. CA 95240
Notice to Winery: Van Ruiten Family Winery, LLC
340 West Highway 12
Lodi, CA 95242
10 Indemnification. Defense and Hold Harmless.
a. Winery agrees to and shall indemnify, defend and hold the City, its
council members, officers, agents, employees and representatives
harmless from liability for damage or claims of damage, for personal
injury, including death, and claims for property damage which may arise
from this agreement.
b. Winery's obligation under this section to indemnify, defend and hold
harmless the City, its council members, officers, agents employees, and
representatives shall not extend to liability for damage or claims for
damage arising out of the sole negligence or willful act of the City, its
council members, officers, agents, employees or representatives. In
addition, Winery's obligation shall not extend to any award of punitive
damages against the City resulting from the conduct of the City, its
council members, officers, agents, employees or representatives.
C. With respect to any action challenging the validity of this Agreement or
any environmental, financial or other documentation related to approval of
this Agreement, Winery further agrees to defend, indemnify, hold
harmless, pay all damages, costs and fees, if any incurred to either the
4
City or plaintiff (s) filing such an action should a court award plaintiff(s)
damages, costs and fees, and to provide a defense for the City in any
such action.
IN WITNESS WHEREOF this Agreement has been executed by the parties on
the day and year first above written.
CITY OF LODI, a municipal corporation VAN RUITPN FAMILY WINERY, LLC
BLAIR KING ` ;k John Van
City Manager �/ Its: Owner
ATTEST:
SUSAN J. BLACKSTON
City Clerk
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER
City Attorney
5
CITY COUNCIL
JOHN BECKMAN, Mayor
SUSAN HITCHCOCK
Mayor Pro Tempore
LARRY D. HANSEN
BOBJOHNSON
JOANNE L. MOUNCE
CITY OF LODI
PUBLIC WORKS DEPARTMENT
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LOOT. CALIFORNIA 95241-1910
(209)333-6706
FAX (209) 333-6710
EMAIL pwdept@lodi.gov
http:\\www.lodi.gov
June 9,2005
Van Ruiten Family Winery, LLC
340 W. Highway 12
Lodi. CA 95242
BLAIR KING
City Manager
SUSAN J. BLACKSTON
City Clerk
0. STEVEN SCHWABAUER
City Attorney
RICHARD C. PRIMA, JR.
Public Works Director
SUBJECT: Authorize City Manager to Execute Industrial Waste Connection
Memorandum of Understanding with Van Ruiten FamilyWinery as
Downtown Revitalization Business Attraction Incentive
Enclosed is a copy of background information on an item on the City Council agenda of
Wednesday, June 15, 2005. The meeting will be held at 7 p.m. in the
City Council Chamber, Carnegie Forum, 305 West Pine Street.
This item is on the regular calendar for Council discussion. You are welcome to attend.
If you wish to write to the City Council, please address your letter to City Council,
City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the
mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street.
If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's
card (available at the Carnegie Forum immediately prior to the start of the meeting) and
give it to the City Clerk. If you have any questions about communicating with the
Council, please contact Susan Blackston, City Clerk, at 333-6702.
If you have any questions about the item itself, please call me at 333-6759.
Richard C. Prima, Jr.
r • Public Works Director
RCP/pmt
Enclosure
cc: City Clerk
NVANRUITENMOU.DOC