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HomeMy WebLinkAboutAgenda Report - November 19, 2014 C-09AGENDA ITEM c4 Crrv or Lour CouNcIr CovIMUNICATIoN TM AGENDA TITLE: MEETING DATE: PREPARED BY: Adopt Resolution Authorizing City Manager to Execute Winery Wastewater Pipeline Agreement with Michael/David Winery November 19,2014 Public Works Director RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute winery wastewater pipeline agreement with Michael/David Winery. BACKGROUND INFORMATION: The City of Lodi is proposing to build an approximately 11,500-foot long industrial wastewater force main within San Joaquin County Michaer/David winery to the city of .-:ä"',ïil3,i:iî::lxi:Í#;ilIfr,['l:ffliiffi'J,?[':i::i" The City of Lodi approved a Memorandum of Understanding (MOU) with Michael/David Winery (Winery) and Jesse's Grove Winery on October 18, 2006, to truck industrial winery wastewater to the City's White Slough Water Pollution Control Facility (WSWPCF). The MOU granted to the Winery up to 700,000 galloñs per year of industrial treatment capacity. Subsequently, additional industrial treatment capacity ñas been granted to the Winery in increments of 300,000 and 500,000 gallons for a total capacity of 1.5 million gallons per year. Currently, Winery production requires that approximately one million gallons of winery wastewater be conveyed via tanker truck to WSWPCF, Since typical transport trucks can carry approximately 6,500 gallons, installation of the proposed facilities will eliminate the need for approximately 150 truck trips per year. Winery is proposing to build an industrial wastewater collection and booster pump facility on existing Winery property anã the City of Lodi is proposing to construct an approximately 11,500-foot long force main.-Winery will fund all costs associated with planning, design, permitting, and construction of the proposed facilities. The principal conditions of the Winery Wastewater Pipeline Agreement, provided in Attachment A, between the City of Lodi and the Winery are listed below. 1. The Winery will have the right, upon payment of the applicable treatment capacity charges, to discharge to the City industrial wastewater pipeline up to 10 million gallons of winery wastewater per calendar year. The additional discharge will have minimal impact to the industrial system treatment operations. 2. The Winery will pay all costs for planning, designing, environmental review (state, county, and city), LocalAgency Formation Commission approval, permitting, financing and constructing the proposed facilities. The City of Lodi will own the pipeline under a permit granted by San Joaquin County. The City of Lodi will contract for the construction of the pipeline. APPROVED K:\WP\PROJECTS\SEWER\Michael David Winery\CCMichaelDavidPipeline (2).doc r, City Manager 11t1212014 Adopt Resolution Authorizing City Manager to Execute Winery Wastewater Pipeline Agreement with Michael/David Winery November 19,2014 Page 2 3. The Winery will pay a surcharge of 150 percent for service outside the City limits per Lodi Municipal Code Section 13.12.150. 4. This Agreement acknowledges the Reimbursement Agreement dated January 7,2014 between the City of Lodi and the Winery to facilitate the permitting and environmental review of a possible winery wastewater pipeline. 5. The pipeline design and estimated construction costs are provided as Exhibits A and B to the agreement provided as Attachment A. 6. The Winery will reimburse the City for all costs within 30 days of invoice from City to Winery. 7. Winery wastewater is the industrial wastewater generated as part of the Winery's wine making and barrel facility operations and does not include any sanitary wastewater. 8. The Winery may cancel the Agreement at any time provided Winery reimburses all City costs incurred under the Agreement.L The Winery will continue to operate a tasting room in downtown Lodi for the entire term of this Agreement. 10. The initial term of this agreement is 20 years with two automatic 2}-year term renewals, unless the Winery provides written notice of intent not to renew. Staff recommends adopting a resolution authorizing the City Manager to execute the Agreement. FISCAL IMPACT: All project-related City costs will be paid by the Winery. Revenues are dependent on the amount of capacity requested by the Winery. The one time capacity fee is approximately $18,400 for each million gallons of capacity per year. The annual service charge varies slightly with annual flow. The annual service charge is expected to be approximately $6,000 per year for every million gallons of discharge, including the surcharge for service outside the City limits. FUNDING AVAILABLE: Not applicable ,{ w F. Wally Sand Public Works Director FWS/smh Attachments cc: Michael Rego K:\WP\PROJECTS\SEWER\Michael David Winery\CCMichaelDavidPipeline (2).doc 1111212014 RESOLUTION NO. 201 4-205 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A WINERYWASTEWATERPIPELINEAGREEMENTWITH PHILLIPSFARMS,LLC,dbaMICHAELDAVIDWINERY ====================================================================== WHEREAS, the City of Lodi is proposing to build an approximately 11,500-foot long industriar wastewater force main line 'withiñ san Joaquin countv's existing public iiınt-ot-*"V from thã southeast portion of the Michael David Winery (Winery) to the City of Lıdi's industrial wastewater pipeline crossing in Devries Road; and WHEREAS, current Winery production requires approximately one million gallons of winery wastewater be conveyed via tanker truck to the City's White Slough Water Pollution Contól Facility, resulting in approximately 150 truck trips per year; and WHEREAS, Winery is proposing to build an industrial wastewater collection and booster pump facility on "iirting w¡nery-property.- winery will fund all costs associated with planning, delign, pármitting, añd consiruction ót ttre proposed facilities and the industrial wastewater force main line. NOW, THEREFORE, BE lT RESOLVED that the Lodi city council does hereby authorize the city Manager to execute a winery wastewater Pipeline Agreement with Phillips Farms, LLC, dba Michael David Winery. Dated: November 19,2014 ==========Ê=========================================================== I hereby certify that Resolution No. 2014-205 was passeO 9n!-3!oqted by the City Council of theb¡ty oíLodi in a regular meeting held November 19, 2014, by the following vote: AYES NOES: ABSENT: ABSTAIN couNclL MEMBERS - Hansen, Johnson, Mounce, Nakanishi, and Mayor Katzakian COUNCIL MEMBERS - COUNCIL MEMBERS - COUNCIL MEMBERS - None None None P"ûw,-ì- F 2014-205 Clerk e-q ATTACHMENT 3 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Lodi 221 W. Pine Street Lodi, CA 95240 Attn.: City Clerk MEMORANDUM OF AGREEMENT Assessor's Parcel Numbers 055-160-29 055- 1 60-4 l 055-160-50 This Memorandum of Agreement is entered into on this day of 2014, by and between the City of Lodi, a California municipal corporation, with an office at 221 V/. Pine Street, Lodi, CA 95240 (hereinafter referred to as "City"), and Phillips Farms, LLC dba Michael David V/inery located at 4580 W. Highway 72, Lodi, CA 95242 (hereinafter referred to as "Winery"). l. City and V/inery entered into a 'Winery Waste Vy'ater Pipeline Agreement ("Agreement") on 2014, for the pulpose of providing financing, permitting and construction of a pipeline to transport waste water from Winery to City's White Slough V/ater Quality Control Facility ("Treatment Plant") and, to enable V/inery to deliver up to 10 million gallons per year of V/inery waste water to Treatment Plant through the pipeline. All of the foregoing is set forth in the Agreement. 2. The term of the Agreement is for twenty (20) years commencing on the date the City certifies that the pipeline is operational ("Commencement Date") and terminating on the twentieth anniversary of the Commencement Date, with two (2) additional successive twenty (20) year terms unless Winery provides written notice to City of its intent not to renew not less than six (6) months before the end of a given term. 3. The Land which is the subject of the Agreement is owned by Michael J. Phillips and T(ricfr¡ À Phillinc co-trustees of the '[\li¡haal o-.1 T{ri"f.' Þ.lrilli . 100Á E^*;l*, 't*,,.+ dated November 8. 1996 and David J.lins and Corene D. Phillins. trustees of the David and Corene Phillips Familv Trust..Iune 2. 2005. The named trustees are siqnatures to this Memorandum of Agreement and by their sienature consent to the recordation of this Memorandum. 4. The Land which is the subject of the Agreement is described in Exhibit A ûegal descriptionsl and Exhibit B (Assessor's Parcel Map) attached hereto and made apart hereof. ATTACHMENT 3 IN V/ITNESS WHEREOF, the parties have executed this Memorandum of Agreement as of the day and year first above written. CITY:WINERY: CITY OF LODI, a municipal corporation By By: STEPHEN SCHV/ABAUER City Manager ATTEST:By: By: JENNIFER M. ROBISON City Clerk APPROVED AS TO FORM: By: JANICE D. MAGDICH City Auorney KRISTY A. THE MICHAEL PHILLPS 1996 FAMILY TRUST" dated N 8- 1996 Rv: MICHAEL J.,I,TPS TnrsteeCo- Rv: KRISTY A..T.TPS Co-Tnrstee PHILLPS FARMS, LLC dbA MICHAEL DAVID WINERY MICHAEL PHILLPS CEO DAVID PHILLPS President 2 [Signøtures continue on the next page.J ATTACHMENT 3 DAYID J-,PHILLIPS AND CORENED. PHILLPS. TRUSTEES OF THE DAVID AND CORENE PHILLIPS FAMILY TRUST. dated June 2" 2005 By DAVID J. PHILLPS. Trustee By: CORENE D. PHILLPS. Trustee J ATTACHMENT 3 STATE OF CALIFORNIA COLINTY OF SAN JOAQUIN On before me, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/heritheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal (sEAL) Notary Public STATE OF CALIFORNIA coLrNTY OF SAN JOAQUIN On before me, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (sEAL) Notary Public 4 ATTACHMENT 3 STATE OF CALIFORNIA COUNTY OF SAN JOAQUIN On before fle, , Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (sEAL) Notary Public STATE OF CALIFORNIA COUNTY OF SAN JOAQUIN On Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument' V/ITNESS my hand and official seal. (sEAL) Notary Public before fra, , 5 ATTACHMENT 3 STATE OF CALIFORNIA COLINTY OF SAN JOAQUIN On Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subsøibed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal (sEAL) Notary Public STATE OF CALIFORNIA COLTNTY OF SAN JOAQUIN _, before me, -, before me,On Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/heritheir signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (sEAL) Notary Public 6 ATTACHMENT 3 EXHIBIT A LEGAL DESCRIPTION ATTACHED 1 LEGAL DESCRIPTION I . That certain real property located in the City of lodi, State of California, County of San Joaquin more particularly described æ follows: PARCEL ONE: A portion of the Northeast Quarter (NE %) of Section Thirteen (13), Township Threr (3) North, Range Five (5) East, Mount Diablo Basc and Meridian, described as follows: COMMENCING at the Northeast comer of said Section 13; thence along the North line of said Section 13, North 89' 52' rtrest 739.5 feet; thence South 0o l3' rù[est i859 feet to a point in the North line of that certain tract of land conveycd to G. Ghigüeri, by Deed dated January 22,1907, recordedJanuary25,1907,inBook".A,"ofDeeds,Vol. l6?,Page I71,SanJoaquinCounty Records; thence along the North line of said tact of land, North 89o54' East, 746.5 feet to apoint in thc East line of said Section 13; thence along the East line of said Section 13, North 1956 feot to the point of beginning. EXCEPT an undivided /z interest in and to all oil, gas, and other hydrocarbon substances and minøals in and under said lands æ conveyed to COLE CffRUS COMPANY, INC. byDesd rccorded March 25, 1968, in Book 3197, Page 239, San Joaquin CountyRecords, which Dced provides for all easemsots and rights of way necessary or convenient for the production, storage and tansportation and testing of said oil, gas and other minerals. ALSO RESERVING an undivided % intercst in and to all oil, gas, minerals ar¡d other hydrocarbon substances as reserved in the Þeed executed by LAWRENCE BALERI, a widower, et al. reærded January 30, 1976, Instrument No, 4937. ALSO RESERVING an u¡dividedt/tinterest in and to all oil, gas, minerals and otber hydrocarbon substances as rserved in the Deed executed by SAL COLE, et ux, et al, recorded January 30; 1976, hsturnent No. 4938. EXCEPTING THEREFROM that certain rcal property referred to as Parcel One in that csrtain Parcel Map filed for record in the Office of the San Joaquin County Rccorder on July 26, 1990, in Book 17 of Pa¡cel Maps Page 39. PARCEL TWO: A portion of the Northeast Quart€r (NE 7ì of Section Thirtee¡r (13), Township Tluee (3) North Range Five (5) East Mount Diablo Base and Meridian, dsscribed as follows: COMMENCING at a point on the North line of said Section 13, bearing Nortlr 8y52' Wæt 739.5 feet from the Northeæt corner of said Section 13; thence continuing along the Norttr line of said Section 13, North 89o 52' East702.4 feet; thence South 0o13' V/est 1861.9 feet to apoint in the North line of that certain træt of land conveyed to a point in the North line of that certai¡ hact of land conveycd to G, GHIGLIERI by Deed dated January 22, 1907, recorded January 25, 1907, in Book A of Ðeeds, Vol. 621, Pagc l7l, San Joaquin County Records; thence along the North linc I of said Eact of land, North 89o54'East 702,4 feet to a point bearing South ggoj4' lyest 746.5 fqetfrom the Eæt line of said Section 13; thence North CPl3' East t85ı feet ro the point of beginning. SAVE Al'fD ExcEPT Êom the above-described parcels of land those certain tracts of landconveyed to BETTY E. SARGENT and MATIE SARGENT VAJL, byDeed dated February2g, 1923, recorded March 5,19?3, in Book A of Deeds, Vol, 541, Page 201, described as follows; Asrip of land 48 feet wide and 1826 fcet along lþg r#est of ar¡d.a¡acrnt to the East line ofsaidSection 13, aud extending from the South line of tf,. Terminus Roa4 which road is atong theNorth line of said Section 13, to the South linc of the 31.68 acre ùact of land convcyed to FRA¡ÍKD. R.A'LLS and MARY S. RAILS, byDeed dated November2g,lg?,?.,rccorded January 3,lg11,,in Book A of Deeds, vol. 534, page 347, san Joaquin county Records. A stip of land 31 feet wide and 1400.9 feet long lyíng North of and ad,jacent to the Southline of property of FRANK Ð. RALLS and l¿fARY S. nÀfrÉ, in the North"*t qurrtr, (NE %) ofsaid Scction 13, and extending ûom the Southwest corner of that certain 30 acre tract described in Deed from J.P. SARGENT to FRAIIK D. RALLS and MARy S. RALLS, his wife, byDeed dared september 12,1920, recorded october 9, 1920, in vol. 306 of Book A ofÐeeds, pige3s7, Eæterly to a point 48 feet west of the East line of said section 13. ' ! EXCEPT Al'l UNDIVDED Y, intcrest in and to all oil, gæ and other hydrocarbon substancæ and minerals in and under^said larrd as conveyed by COLE ÓnnUS COrr,rÞ.+ry, INC., byDeed recorded Much 25, 1968, in Book 3197, Page 239, San Joaquin County Rocords, which Deedprovides for all easement and rights of way necessary or convenient foi ttre production, storagc andransportation and testing of said oil, gas and other minerals. .AISO RESERVING an u¡ldivid"Å,Y, intcrest in and to all oil, gæ, minerals and other hydrocarbon substanccs as reserved in the Deed executed by LAWRENCE BALER! a widower, et ù., rccorded January 30, LgTí,Instrument No. 4937. ALSO RESERVING an rxrdivided% interest in urd to all oil, gas, minerals and otherhydrocarbon substânces æ reserved in the Deed cxecuted by SAL COLE, ei*, .t al., recorded Jaouary 30, 1976, Instrument No. 4938. PARCEL TEREE: A parccl of land situatcd in ths Couuty of Sur Joaquin in the Nortt¡east euarter (NE %) of -Sïti:n Thirtem (13), Township Three (3) North, Range Five (s) East, Mount Dìablo Bæe aud Meridian, described æ follows: COMMENCING at the Northwest corncr of that csrtain 30 acre Fact of land described in Dced from J.P. SARGENT to FRA}{K D. R.q,[s and ]vfARy s. RALLS, his wife, by Deed dxed scptember 24,1920, recorded october g,lgza,in Book A of Decds, vot. loe, Þagc 357, sao lgqoin County Records, which point of comms¡rccmcnt bcars V/esierly 1a4.9 feãt fron trre Northeæt comer of thc said Scctiou 13¡thencc along thc V/est line of túe abovc mc,ntioned 30 ærc tr¿ct of land of FRAIIK D' RATLS and MARY S. RALLS, Sourh Ol0' East 1830.9 feer to a point3l fæt Nortb of the Southwest comsr of the above mentioned 30 acre tact of land ofFRnNK D.RATLS and IvfARY S. RALIJ, thence Soutb 89o31' West parallcl to thc Soutt¡ line of prope¡ry ofthe J.P. SARGENT ESTATE 66.4 feet; theacc North 0o56''East 1831.6 feet to apoint in ttreNorth- line of said Section l3; thence along the North line of said Section 13, Nortlr By¿S, East 3t feet to the point of beginning. 9 ' SAVE AND EXCEPT from the above described parcels of land that portion couveyed to tbe WESTERN PACIFIC RAILROAD COMPAI'fY, by Doed recordcd July 7, 1927, inVol., 203 of Official Records, Page75, San Joaquin County Records. EXCEPT an undivíded !/z interest in and to all oil, gas, and other hydrocarbon substances and minerals in and under said lurds as conveyed to COLE CITRUS COMPAI.IY, SIC. by Deed recorded March 25, 1968, in Book 3197, Page 239, San Joaquin Corurty Records, which Deed provided for all easements and rights of way necessary or conveníEnt for the pmduction, storsgc and transportation and testing of said.oil, gas and other minsrals. ALSO RESERVING an rmdivided V, interest in and to all oil, gas, minerals and other hydrocarbon substances as reserved in the Deed exccuted by LAWRENCE BALERI, a widower, et al., recorded January 30,1976, hstn¡ment No. 4937. ALSO RESERVING an rurdivided,Yt interest in and to all oil, gas, rninerals and othcrhydrocarbon substances as resen¡ed in the Deed executed by SAL COLE, et us, et al., recorded January 30, 1976, Instrument No. 4938, Containing 55.3 acres more or less PARCEL FOUR: All those certain parcels of land as described in Deeds recorded July 7, 1927,nVoh¡me 203, Page 75, and August 22,1937, in Volume 201 Page 155, both in the Official Records of San Joaquin County. Containing 2.75 acres more or less APN: 055-160-29 055.16041 055-r60-50 L0 ATTACHMENT 3 EXHIBIT B ASSESSOR'S PARCEL MAP ATTACHED tt =o6UJv)o0-sa.=u¡Euvlf\) 1nUIanthqee0.sanË055-16øTYflD /S MIFOR ßElÍIflIOFæMtG ÆGUUTJO{SflryffiItÆàFüBJY3@Ftrr=-L-reEND:@ *.***o,*..t::1y::lt]j]wPqeMNntu8-PM.8k.i4Pg 147C - R.S. A!.. tP Pg. 175Ð-FM.tsk.1/Pg.a39Ë -?ilì.8k.20 Pg.091^-Wll¡âmson Act Pa@¡8K055re.16Cwlyof San.baquin,CAAl R¡ghE RêsryedCopright County of San J€einAsessr Mappins/Gls 2013rcR. SEC. 13 & 14T3N. F-5,E., M.D.B.WI.sEc.7sÉc.16tr¡¡þqÈl-sEc.1asEc.12àsEc.12sEc.13HWY@,p*@a@Nfr7Lü acs,@2ô60Áæ.acs.3A.O1Aæ. Ng30.sÁcs..ô9¿NTØ@@3.57Äcs-271Ács_@t3.35 ACS.10.5f aæ.fl9.ø11.91 ACS. NgNT5.69 46.I@7.03Ács_20'\20'60'x 60'@@@¡1442 46.16-6ACS-@¡17Æ acs.g-32 ACS. Ng@nt0 00 acs-Nú@s€c.1313sËc.24fla:sÉc. ÍSTATEsEc.14i:r:îst6àn51.57 ACS-NT;)14Á6_Nfra-o(tsEc_ 14 CITY COUNCIL PHIL KATZAKIAN, Mayor LARRY D. HANSEN, Mayor Pro Tempore BOB JOHNSON JOANNE L. MOUNCE ALAN NAKANISHI CITY OF LODI STEPHEN SCHWABAUER City Manager JENNIFER M. ROBISON City Clerk JANICE D. MAGDICH City Attorney F. WALLY SANDELIN Public Works Director PUBLIC WORKS DEPARTMENT CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODt, CALt FORNIA 95241 -191 0 (209) 333-6706 FAX (209) 333-6710 EMAIL pwdept@lodi.gov http:\\www.lod i. g ov November 12,2014 Michael Rego SUBJECT: Adopt Resolution Authorizing City Manager to Execute Winery Wastewater Pipeline Agreement with Michael/David Winery Enclosed is a copy of background informat¡on on an item on the City Council agenda of Wednesday, November 19, 2014. 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 consent calendar and is usually not discussed unless a Council Member requests discussion. The public is given an opportunity to address items on the consent calendar at the appropriate time. lf 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. lf 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. lf you have any questions about communicating with the Council, please contact Randi Johl, City Clerk, at (209) 333-6702. lf you have any questions about the item itself, please call F. Wally Sandelin at (209) 333-6706. nJ/ þflnv e F. Wally Sandelin Public Works Director FWS/smh Enclosure cc: City Clerk NCCMICHEALDAVIDPIPELINE.DOC