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Home My WebLink About06/17/2003, C2 - WATER REUSE PROJECT - HAYASHI WELL AGREEMENT I council "°di'"°m 6/17/03 j acEnaa Repout '�Nuah� C/a CITY OF SAN LUIS 0BISP.O FROM: John Moss,Utilities Direct o SUBJECT: WATER REUSE PROJECT—HAYASHI WELL AGREEMENT CAO RECOMMENDATION Approve agreement, in the amount of$104,266.91, with John and Howard Hayashi to complete wells on their property and modify the irrigation system to use the water available from the wells rather than water diverted directly from San Luis Obispo Creek to irrigate property along South Higuera Street. DISCUSSION During the development of the Water Reuse Project, flow in San Luis Obispo Creek was the major environmental issue. Modeling of the flows indicated that replacing the direct diversion on the Hayashi property with wells on that property would significantly reduce the peak impact on the creek. Mr. Hayashi was agreeable to such an action. The requirement to accomplish this work is contained in the biological opinion issued by the National Marine Fisheries Service and is also incorporated into the Order issued by the State Water Resources Control Board to approve the City's request to change the use of treated wastewater. Under a separate contract,wells were drilled and tested to determine if the supply of groundwater was adequate to support this mitigation measure. The two wells produce two-thirds the flow that has been used from the creek. This is acceptable to the owners under the terms of the agreement which includes compensation to modify the irrigation system to use drip irrigation which will also reduce the peak and total demand on the basin. FISCAL E%IPACT Hayashi Well mitigation element of the Water Reuse Project Agreement $104,266.91 Well Construction $ 33.000.00 TOTAL $137,266.91 The Water Reuse Project CIP (FY 2001-2003 Financial Plan appendix B page 106) mitigation account currently has a balance of$557,476. Attachment: 1. Agreement 2. Detail cost estimate \\879—MORRO\SYS\GROUPS\UTIL\Council Agenda Reports\2003 Council Agenda Reports\WRP-Iayashi_Agreement_CAR.doc l.IACL ATTACHMENT 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO:. Utilities Department CITY OF SAN LUIS OBISPO 990 Palm Street San Luis Obispo, CA 93401 APN: 076-081-018 THIS SPACE RESERVED FOR RECORDER ONLY Gov.Code 27361.6 AGREEMENT TO USE WELLS IN LIEU OF CREEK DIVERSION This agreement is entered into this day of ,2003,by and between John H. Hayashi, and Howard H. Hayashi hereafter referred to as "Owner", and the City of San Luis Obispo, a chartered municipal corporation, hereafter referred to as "City", collectively referred to as "Parties". The property transferred from John Hayashi to John H. Hayashi and Howard, H. Hayashi on May 6, 1994 by Grant Deed recorded as document number 1994-029237 of the Official Records of San Luis Obispo County, CA, and identified by assessors parcel number 076-OR 1- DIE is hereinafter referred to as "Subject Parcel". On the Subject Parcel,the Owner has maintained a creek diversion that is estimated by owner to have pumped 700 acre feet per year for the purposes of agricultural irrigation. On the Subject Parcel,the City has drilled and cased two wells that,based on pump testing, are expected to produce a total of 650 gallons.per minute. The City is developing a Recycled Water Distribution Project which will reduce the current discharge of treated wastewater to San Luis Obispo Creek and as mitigation for this project seeks to reduce the amount of direct diversion from the creek. In consideration of the mutual and respective covenants and promises set forth herein and subject to all the terns and conditions hereof,the Parties hereby agree as follows: 1. The City quitclaims, to the Owner,the wells that have been drilled and cased on Subject Parcel. The City shall have no further responsibility for these wells. 2. This deed shall in no way be construed to limit the water rights,riparian, appropriative, or otherwise of the Owner. 3. The Owner acknowledges receipt of the sum of$104,266.91 as compensation for development of the wells, and related piping and electrical services, and for future costs of maintenance, upkeep and replacement of the water supply system. ca -a ,J ATTACHMENT 1 4. In consideration for the City's quitclaim of the wells and the specified cash payment, the Owner agrees to discontinue use of the creek diversion and develop an irrigation program that utilizes water conserving irrigation practices and will function with the 650 gallons per minute being produced by the wells. The maintenance, upkeep or replacement of the wells and irrigation system will be the responsibility of the Owner. This agreement does not restrict the owner's options relative to the diversion, should the wells fail to produce at least 650 gallons per minute of water suitable for the owner's agricultural operations. In the event of failure of the wells to produce the desired 650 gallons per minute, owner agrees to work with the City in the development of alternative diversions, such that the intent and purpose of this agreement is protected, and City agrees to cooperate with the owner in a good faith effort to develop such alternative diversions in an expeditious manner so as to minimize disruption and consequential damage to owners agricultural operations. 5. All notices, statements,requests or other communications that are required either expressly or by implication to be given by either party to the other under this agreement shall be in writing. 6. Any waiver at any time by either party hereto of its rights with respect to a breach or default, or any other matter arising in connection with this agreement, shall not be deemed to be a waiver with respect to any other breach, default or matter. 7. This agreement shall be binding on the heirs, executors, administrators, successors, agents, lessees and assigns of the respective parties. 8. This agreement is freely and voluntarily entered into by the parties after having had the opportunity to consult with their respective attorneys. The parties,in entering into this agreement, do not rely on any inducements,promises, or representations made by each other, their representatives, or any other person, other than those inducements,promises, and representations contained.in this agreement. This agreement represents the entire agreement of the parties. 9. The City shall record this agreement and shall be responsible for any recording costs. IN WITNESS WHEREOF,the parties have hereunto set their hands the day and year first entered above, at San Luis Obispo, California. Mayor David F. Romero 2 -- ATTACHMENT 1 STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) ss. On before me, City Clerk Lee Price,personally appeared Mayor David F. Romero,known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand.and official seal. LEE PRICE, CMC, CITY CLERK APPROVED AS TO FORM: ionaffiafflowell, City Attorney OWNERS: John Hayashi Howard Hayashi 3 Ca - `- ATTACHMENT $ STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO )SS. On before me, , personally appeared personally known to me or proved to me on the basis of satisfactory evidence, to be the person(s) whose name is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature on the instrument the person or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature of Notary Public (Notary Seal) STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) ss. On before me, _ ,personally appeared personally known to me or proved to me on the basis of satisfactory evidence,to be the person(s)whose name is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature on the instrument the person or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature,of Notary Public (Notary Seal) 4 C� '� I Attachment 2 HAYASHI WELLS IMPLEMENTATION COSTS Qty Description UOM Unit Price Extended CONNECT BOTH WELLS 3200 PVC PIPE 8"CLS125 GASKETED FEET 3.05 9,760.00 1 2 CHECK VALVES & FLANGES EACH 700.00 700.00 14 PVC TEE 8X4"-SLIP EACH 101.42 1,419.88 14 PVC ADPT 40-SLIPXMIPTH EACH 4.74 66.36 14 RISER VALVE 4"FELTON FIPTH EACH 35.82 501.48 3 VENT-4"AG VENT 400B EACH 122.02 366.06 3200 LABOR TO INSTALL PIPE FEET 2.00 6,400.00 WELL PUMPS 1 HAYASHI #1 EACH 12,735.15 12,735.15 1 HAYASHI #2 EACH 9,952.00 9,952.00 PIPELINE TO NORTH FIELD 3200 PVC PIPE 8"CLS125 GASKETED FEET 3.05 9,760.00 5 PVC TEE 8X4"-SLIP EACH 101.42 507.10 5 PVC ADPT 40-SLIPXMIPTH EACH 4.74 23.70 5 RISER VALVE 4"FELTON FIPTH EACH 35.82 179.10 3 PVC TEE 8"-SLIP EACH 101.42 304.26 1 PVC ADPT 6"-SLIPXMIPTH EACH 12.37 12.37 1 RISER VALVE 6" PIERCE EACH 123.35 123.35 1 MISC SCH PVC FITTINGS EACH 300.00 300.00 3200 LABOR TO INSTALL PIPE FEET 2.00 6,400.00 1 50 ACRES DRIP EACH 10,618.52 10,618.52 1 FILTER-TEKLEEN 8"WITH 2"FLUSH EACH 7,866.47 7,866.47 1 TELEMETRY SYSTEM EACH 3,300.00 3,300.00 1 10%CONTINGENCY EACH 8,129.58 8,129.58 ELECTRICAL POWER TO WELLS BY PG&E 1 ELECTRICAL SERVICE EACH 13,000.00 13,000.00 Net Order: 102,425.38 Sales Tax 1,841.53 $104,266.91 ' t - ' RECEIVED Il�l�u�lllllllllllllllj" IIIIID JUN 1 " 200: COUNCIL MEMORANDUM $L0 CITY CLERK RED FILE - ITEM C2 — June 17, 2002 June 10,2003 To: Mayor Romero and City Council Via: Ken Hampian,City Administrative Office je��' From: John E. Moss,Utilities Direct Subject: June 17,2003 Agenda Item C2 Supplemental Information Attached for your information is a response to a June 3' correspondence received from a'Mr. E. Stewart Johnston (previously distributed to Council),representing a Mr. Angelo Moribito and Mr. David Periera, and raising questions regarding the process and possible impacts of the agreement proposed with Mr. John Hayashi (Agenda item C2) on his clients. Staff's response essentially identifies that the proposed agreement does not impact his clients' property or rights and provides responses to the process questions raised. If you have any questions regarding this correspondence,please contact me at x205. RED FILE MEETING AGENDA DATE" ITEM # COUNCI 'CDD DIR . CAO 2'FIN DIR ACAO .1;?FIRE CHIEF ZAT 0RNEY 0 FW DIR CLERK/ORIG . 2POLICE CHF 0 WT HEADS .2-REC DIR TIL DIR Dr �'1�,� [�cYYHR DIR IIh s oBis C4 of sAn luipo 879 Morro Street• San Luis Obispo, CA 93401 June 9, 2003 Mr. E. Stewart Johnston 1363 West Main Street Santa Maria, CA 93456 Subject: Response to June 3, 2003 Correspondence re: Moribito Property; San Luis Obispo, CA and Agreement with Mr. John Hayashi Dear Mr. Johnston: I am in receipt of your June 3, 2003 correspondence to Mr. (Ms.) Lee Price, City Clerk, inquiring about a pending agreement between the City and Mr. John Hayashi regarding conversion of his direct stream diversion to wells in order to partially mitigate the impacts of the City's Water Reuse project. I am hopeful that this correspondence will lay to rest your clients' concerns with this agreement. Let me begin by saying that the agreement with Mr. Hayashi is tied to only Mr. Hayashi's parcel and use of water. The agreement in no way references or affects Mr. Moribito's parcel or water rights. The fact that Mr. Hayashi leases adjacent land from Mr. Moribito for agricultural use is irrelevant to the agreement between the City and Mr.. Hayashi. Mr. Hayashi has proposed to use the water from the wells for agricultural purposes on both parcels, however the use of the well water on Mr. Moribito's parcel is a matter to be resolved between Mr. Moribito and Mr. Hayashi. The City's primary interest at this time is with Mr. Hayashi's use of stream water. The City is not at this time questioning the rights of your clients to draw water from San Luis Obispo Creek for use on their land. The City is aware of the easement granting them access to the pump. It should be noted that your clients' right to use that pump and water from the creek is by easement agreement with the riparian property owner and may or may not represent a legally recognized water right. That said, again, the City is not questioning your clients right or access to San Luis Obispo creek water for use on their land. In direct response to your questions I offer the following: • The Hayashi/City negotiations have been finalized pending approval by the City Council. The agreement has been negotiated by staff and will be presented to the City Council for approval on June 17, 2003. The agreement does not provide a cash compensation for Mr. Hayashi's agreement to use well water, rather it reflects the costs required to complete the installation of well pumps, electrical service and water distribution system piping required to accomplish the conversion. • CEQA review and approval of this agreement as a project mitigation was completed in the Water Reuse Project EIR and certified by the Council in March of 1997. The conversion of Mr. Hayashi's agricultural pumping from a stream diversion to well use �� The City of San Luis Obispo is committed to include the disabled in all of its-services,programs and activities. Telecommunications Device for the Deaf(805)781-7410 is also required as a reasonable and prudent measure under the City's Biological Opinion for the project issued by the National Marine Fisheries Service. • I am not aware of any approvals required by the Regional Water Quality Control Board relative to the agreement in question. Permits regulating construction activities in the drilling and construction of the wells were obtained from the Regional Board prior to construction., • Instream wildlife and fisheries effects have been reviewed by both the State and Federal government agencies and are actually driving this agreement as a component of a larger mitigation program. As I have explained to Mr. Periera, the agreement between the City and Mr. Hayashi does not affect Mr. Moribito and Mr Periera and/or their historic use of water from the Creek. If at such time as the City determines that additional mitigation or other factors dictate a need to request Mr. Moribito's discontinuance of his stream diversion, we will certainly be pleased to work with Mr. Moribito, as we have with Mr. Hayashi, to seek a mutually acceptable alternative. If you have any further questions regarding the agreement between the City and Mr. Hayashi, please direct your correspondence to me for prompt and proper processing. Sincerel , ohn E. Moss Utilities Director c: Mr. Jonathan Lowell, City Attorney Mr. Scott Slater, Hatch and Parent Mr. David Periera Mr. Angelo Moribito ► RECEIVED JUN = 21003 E. Stewart Johnston SLO CITY CLERK State Bar Number 158651 1363 West Main Street Santa Maria, California 93456 (805) 680-9777 Voice (805) 925-5826 FAX (805) 688-2962 FAX johnstonna silcom.com June 3, 2003 Retain this documentfor fu//tu--re Council meeting Lee Price, San Luis Obispo City Clerk — crate,if agendiizeedd 990 Palm Street San Luis Obispo, CA 93401 Dear Ma Price: ,Utfi'` ,, have been retained by Mr. DavidPereira and Mr. Ang Morabito concerning use of a pump which draws on the flow of San Luis Cree . Mr. Morabito is the fee owner of a parcel which is approximately 55 acres in area. . Mr. Pereira, by contract with Mr. Morabito, retains an interest in the land. My clients have the right to draw on the flow of San Luis Creek for use on their land. My clients have rights to use a pump which they own but which is located on another parcel of land which they do not own. Right of access to the pump is by easement. The servient parcel is owned by John and Howard Hayashi. The Hayashi parcel is approximately 57 acres in area. My clients have learned that you are negotiating with Mr. John Hayashi concerning Mr. Hayashi's water use from San Luis Creek. We have obtained a copy of a draft "Agreement To Use Wells In Lieu Of Creek Diversion" which we understand has not been finalized. In its dealings with Mr. Hayashi, it is important that the City understand that Mr. John Hayashi's status on the Morabito parcel is that of a month to month tenant. He has no power to affect the rights to use water from San Luis Creek on that parcel. ��jj I am interested in learning from the City the current status of the Hay6shi-City negotiations. I would like to understand the entire approval process. Are the negotiations complete? Has the agreement been approved by the City Council? What level of CEQA review will be undertaken? Will the City be the lead agency for CEQA purposes? What approvals will be required from the Regional Water Quality Control Board? Are the in-stream wildlife and fisheries effects subject to review at the state or federal level? 6/2/2003 If the City wishes to reduce the use of water from San Luis Creek on the Morabito parcel, Mr. Pereira and Mr. Morabito would be favorably disposed to an agreement for their 55 acres. But absent an agreement, the historic use of the waters from San Luis Creek will continue on the Morabito parcel. My clients and I look forward to further discussions with the City on the matter. Sincerely, E. Stewart Johns n CC: Jonathan Lowell, City Attorney John Moss, Utilities Director 6/2/2003