HomeMy WebLinkAboutAgenda Report - March 7, 2012 C-09C mpg
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Execute Amendment No. 1 to
the Industrial Waste Connection Memorandum of Understanding with Jessie's
Grove Winery
MEETING DATE:
PREPARED BY:
March 7, 2012
City Manager
RECOMMENDED ACTION: Adopt Resolution Authorizing the City Managerto execute
Amendment No. 1 to the Industrial Waste Connection
Memorandum of Understanding with Jessie's Grove Winery.
BACKGROUND INFORMATION: In 2006, the City Council approved a Memorandum of
Understanding (MOU) with Jessie's Grove Winery to deliver
trucked effluent to White Slough as if it were connected to
the City's industrial wastewater system in exchange for opening a downtown wine tasting room.
The winery began trucking effluent shortly after execution of the MOU in March, 2006. On April 12, 2007,
the cellardoor opened at 21 School Street, fulfilling a requirement of the MOU for a downtown tasting
room.
The agreement has achieved the desired results. An attractive downtown tasting room has opened. The
cellardoor is achieving a reputation as an outlet for four well-known local wineries and a location for pre -
and post -dinner events.
Jessie's Grove Winery is now requesting that the MOU be amended to allow them to relocate their
tasting room facility from the cellardoorto the new "Olde Ice House Cellars" which is being established at
11 E. Locust Street. The amendment is necessaryas the previous agreement limited the location of a
Downtowntasting room to the area west of the Union Pacific Railroad, south of Lockeford Street, east of
Church Street and north of LodiAvenue. The proposed location is just east of the railroad. All otherterms
and conditions would continue to apply.
Staff believesthe new location will provide an expanded benefitto the original concept. We would
recommend that the eastern location be set at properties that have frontage on Main Street. Attached is
the written requestfrom Jessie's Grove Winery and previous MOU.
Attachments
e
Kon adt Bartlam, City ana er
APPROVED:
n dt Bartlam, City Manager
AMENDMENT NO. 1
Jessie's Grove Winery
Industrial Waste Connection Memorandum of Understanding
THIS AMENDMENT NO. 1 to INDUSTRIAL WASTE CONNECTION
MEMORANDUM OF UNDERSTANDING, is made and entered this 7t" day of March,
2012, by and between the CITY OF LODI, a municipal corporation (hereinafter"CITY),
and JESSIE'S GROVE WINERY, LLC (hereinafter "Winery").
on
WITNESSETH:
1. WHEREAS, Winery and City entered into a Industrial Waste Connection
Memorandum of Understanding ("MOU") on March 15, 2006 as set forth in
ExhibitA (attached).
2. WHEREAS, Winery submitted a written request to amend said MOU as set
forth in Exhibit B (attached).
3. WHEREAS, both parties desire to amend the definition of "Downtown Lodi" in
said MOU as follows:
"Downtown Lodi means the area west of the Union Pacific Railroad, south of
Lockeford Street, east to the properties having frontage on Main Street and
north of Lodi Avenue."
IN WITNESS WHEREOF, City and Winery have executed this Amendment No. 1
, 2012.
CITY OF LODI, a municipal corporation
Hereinabove called "CITY"
KONRADT BARTLAM
City Manager
Attest:
RANDI JOHL, City Clerk
Approved as to Form:
D. STEPHEN SCHWABAUER�"
City Attorney
JESSIE'S GROVE WINERY, LLC
hereinabove called "WINERY
NAME:
TITLE:
1EXH1' BiT Al
Jessie's Grove Winery
Industrial Waste Connection Memorandum of Understanding
THIS AGREEMENT is entered into this day of 1 2006, (the
"Effective Date"). between JESSIE'S GROVE 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 1973 West
Turner Road, San Joaquin County, California which is outside the corporate limits of the
City of Lodi. Winery intends to submit an application to truck in their Industrial effluent
to the City's Industrial Wastewater Treatment Plant. ("Project").
B. As more fully detailed in Ordinance No. 1764, the City, through its general
plan is committed to encouraging agricultural uses in the area surrounding the City and
discouraging urban uses. Providing industrial sewer service to wineries encourages
agricultural uses by making them more economical.
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. Terms of Connection. Any delivery of trucked effluent permitted pursuant to the
Agreement shall be subject to 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. Winery will only be allowed
to dispose of Industrial Waste water. No sanitary waste will be delivered
to the City's IndustrialWaste Water Treatment Plant.
b. Volume: The volume of trucked effluent shall not exceed 240,000 gallons
between September 1 and May 31.
C. Rate/Surcharge: Winery's charge for trucked effluent will be as
established by the City for industrial Waste system customers plus a 50%
surcharge at the current rates. Current annual charge based on 300,000
gallons with a BOD of 8,170 mg/L is $1,290.00 including the surcharge.
d. Capacity Charge: Winery shall pay a one-time capacity charge of
$9,925.00 upon delivery of first load of trucked effluent. Additional one
time capacity charges at the current City rates will apply for each
increment of effluent over 300,000 gallons.
e. Downtown Tasting Room: Winery shall open and operate a tasting room
in Downtown Lodi during the entire term of its trucked effluent disposal
agreement with the City. The tasting room shall be operated within the
following minimum requirements:
i) The wine tasting room must be established and open for business
before delivery of trucked effluent.
;) 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.
iii) If Downtown Tasting Room closes, this Agreement will terminate
and the City will not consider a new agreement to treat winery's
effluent for 12 months from the ctosure date.
f. The agreement cannot be assigned and is only for the use of the Winery.
3. Binding Effect of Agreement. Winery's obligations under paragraph two of this
Agreement will only be triggered if all approvals necessary to secure that the
trucked effluent disposal agreement is secured.
4. Reimbursement. Winery shall reimbursethe City for all costs incurred by the City
in connection with the Project. The City will provide Winery with an estimate of
these costs in advance of delivery of trucked effluent. 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.
5. Delivery. Winery shall be solely responsible for delivering the trucked effluent to
Lodi's Industrial Waste Water Treatment Plant.
6. Relationship of Parties.
a. It is understood that the contractual relationship between the City
and Winery is such that Winery :b 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.
pq
C. 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.
7. No Entitlements Granted. Nothing in this Agreement shall provide Winery with
any right to secure approval of any connection of 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,
recommendationsor approvals of the Consultant.
S. 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 Lodi
City Manager
221 W. Pine Street
Lodi, CA 95240
Notice to Winery: Jessie's Grove Winery, LLC
1973WestTurner Road
Lodi, CA 95242
9. 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 cf
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)
3
damages, costs and fees, and to provide a defense for the City in any
such action.
X WITNESS WHEREOF this Agreement has been executed by the parties on
the day and year first above written.
CITY OF LODI, a municipal corporation JESSIE'S GROVE WIN
BLAIR KING7/ By:
City Manag-6f Its:
ATTEST:
4.SAN J. OLACKSTON
Clerk
V
APPROVED AS TO FORM:
D. STEPHEN SCHWABA
City Attorney
n
I
VINEYARDS • WINERY
To Rad Bartlam:
City Manager of Lodi
�ecev
l?^^2
.� 4FFjCle
[[X HIB1T 8
Jessie's Grove Winery would like to put a petition before the Lodi City
Council. We propose to move our Downtown Tasting Room from its
current location "The Cellar Door" at 21 N. School Street, to the "Olde
Ice House Cellars" located at 11 E. Locust Street.
This will affect our current contract for our Industrial Waste Water
Connection MOU permit. This permit currently defines the Cellar
Door, at 21 N. School St., as our established location to entitle us to link
our Winery's Industrial Waste Water Connection with the City of Lodi.
In our MOI agreement, there would need to be an amendment to
include Main Street as part of "Downtown Lodi." The MOI is currently
defined as being bordered by Church St; Lodi Ave; Union Pacific
Railroad and Lockford St. Our new location would be immediately east
of the Union Pacific Railroad tracks on the corner of Locust and Main
St. Notably, our site on Locust and Main, is one block North of Toasted
Toad Cellars — also on Main Street. To bring additional value to the
eastern edge of the Downtown corridor, I would petition the Lodi City
Council to consider moving the downtown line boundary - east — past
Main St. and over to Stockton Street.
All other terms and conditions would be concurrent to that of our
MOU.
We would like to express that the Olde Ice House Cellars is soon to
become the new winery production facility of Dancing Fox Winery and
will house common cased wine storage and barrels for both Dancing
Fox and Jessie's Grove Wineries. There will be over 14,000 sq. ft. of
floor space of which 45 Yowill be for barrel storage and 31 Yo for case
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goods storage. There will be common use spaces dedicated and most
importantly to this letter — there will be 850 sq. ft. constructed for a
beautiful retail Tasting Room. Jessie's Grove will be contracting the
lease on this space and will soon be announcing the intent of other small
wineries which wish to also be represented there.
The entire Olde Ice House Cellars project is projected for completion in
April of this year.
Jessie's Grove intends to continue its partnership with the Downtown
Business Group and Chamber of Commerce and to participate in all
downtown winery tasting events. The revitalization of the historic
Union Ice House into the "Olde Ice House Cellars" is in tune with the
expansion of downtown synergy and draw of community focus.
Sin
Greg Burns
Owner/Winemaker
Jessie's Grove Winery
1973 W. Turner Rd.
Lodi, Ca 95242
RESOLUTION NO. 2012-16
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING CITY MANAGER TO EXECUTE
AMENDMENT NO. 1 TO MEMORANDUM OF
UNDERSTANDING WITH JESSIE'S GROVE WINERY
WHEREAS, in 2006, the City Council approved a Memorandum of
Understanding (MOU) between the City of Lodi and Jessie's Grove Winery to deliver
trucked effluent to White Slough as if it were connected to the City's industrial
wastewater system in exchange for opening a downtown wine tasting room; and
WHEREAS, Jessie's Grove Winery has requested that the MOU be amended to
allow it to relocate its tasting room facility from the Cellardoor to the new "Olde Ice
House Cellars," which is being established at 11 E. Locust Street; and
WHEREAS, an amendment redefining the area where the tasting room can be
located is required, as the previous agreement limited the location of a Downtown tasting
room to the area west of the Union Pacific Railroad, south of Lockeford Street, east of
Church Street and north of Lodi Avenue; and
WHEREAS, staff recommendsthat the eastern boundary be amended to include
properties that front on Main Street.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute Amendment No. 1 to the Memorandum of
Understanding with Jessie's Grove Winery.
Dated: March 7, 2012
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hereby certify that Resolution No. 2012-16 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held March 7, 2012, by the following vote:
AYES: COUNCIL MEMBERS - Hansen, Johnson, Katzakian, Nakanishi,
and Mayor Mounce
NOES: COUNCIL MEMBERS -None
ABSENT: COUNCIL MEMBERS -None
ABSTAIN: COUNCIL MEMBERS -None /-'7 None,
JOHL
City Clerk
2012-16