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Resolution 1986-37 . . RESOLUTION NO. 86...37 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY ESTABLISHING A COST SCHEDULE A1~ONG THE USERS OF THE AGRICULTURAL SEWER SYSTEM After a noticed public hearing this date. and based upon the June 1, 1986 Cost Sharing Agreement and Addendum to the Sewer Revenue Agreement of 1980, and good cause appearing therefore, The City Council finds that the various costs and charges in the operation of the Agricultural Sewage Treatment Facility should be shared as set forth and agreed to by the parties to said Agreement. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GILROY, CALIFORNIA, that pursuant to the provisions of Gilroy City Code section 19.28, the City Council does hereby establish as the schedule for sharing all costs and charges of the Agricultural Sewer System the June 1, 1986 agreement above referred to, a true copy of which is annexed hereto as "Exhibit A". PASSED AND ADOPTED this 16th day of June 1986 by the following vote: AYES: NOES: ABSENT: COUNCILMEMBERS: ALBERT, GAGE, KLOECKER, MUSSALLEM, PALMERLEE, VALDEZ and HUGHAN COUNCILMEMBERS : NONE COUNCILMEMBERS: NONE RESOLUTION NO. 86...37 . . COST SHAR.ING AGREEMENT AND ADDENDUM TO THE SEWEt REVENUE AGREEKEIrI' OF 1980 THIS AGREEMENT entered into as of June 1, 1986, by and between the CITY OF GILROY ("City") and the four "Other Parties" served by Agricultural Sewage Treatmen: Faciltiy, namely GILROY FOODS, INC., GENTRY FOODS CORP., as successor to Foremost-McKesson, Inc.. GILROY CANNING COMPANY, as successor to California Canners and Growers, and GARDEN VALLEY FOODS, is for the purpose of determining the rights and payment shares of the Other Parties in the various costs and charges in the operation of the Agricultural Sewage Treatment Faciltiy, "as set forth below. 1. The cost.of the 1985 Ag Pipeline Project and Bond Redemption for ~5-86 and all subsequent years shall be paid as follows: Gilroy Foods Centry Gilroy Canning Garden Valley 27.4% 20. 0% 33.0% 19.6% The above percentages shall also establish the distribution of capaciry~vai~~,bl,~ _t_~~t;he~O~1!er_~!r~ie.s ~____ 2. Commencing July 1, 1985, the annual sprinkler operation and maintenance costs from each 7/1 to 6/30 shall be paid as follows: Gilroy Foods) - and ) tGentry ) $10,000 per year each in equal monthly installments Gilroy Canning) - and ) Garden Valley ) Remaining balance pro-rated based on usage of each with a minimum of $10,000 annually. 3.a. All capital expenditures under $20,000 per project shall be paid as part of operation and maintenance under paragraph two (2) above. b. Governmentally imposed capital expenditures in excess of $20,000 per project shall be paid as in paragraph one (1) above. If either GILROY FOODS or GENTRY elect not to participate, that shall constitute a withdrawal from the system as set forth in paragraph four (4), and the remaining other parties will share the cost in proportion to their percentages in paragraph one (1) adjusted to 100%. ~. Any non-governmental imposed capital expenditure in excess of i20,GGO per project shall be paid only by those parties who approve of the project and in proportion to their percentages in paragraph one (1) adjusted ~o 100%. However, if only users pay for the capital project, they will pay en ~e basis of actual yearly usage. -1- Exhibit "A" . . 4. GILROY FOODS and GENTRY may withdraw from the system after June 1, 1988, and before June 1, 1991, by written notice to all other parties, and be reimbursed for their contributions to the 1985 Ag Pipeline Project by GILROY CANNING and GARDEN VALLEY FOODS in proportion to their paragraph one (1) contributions, one-half six months after notice, and the balance 18 months after notice. No notice may be given before June 1, 1988, and no reimbursement will pe paid on a notice given after June 1, 1991. 5. If a new user acceptable to all parties (consent shall not be , ~reasonably withheld) wishes to connect to the Ag Sewage System while GILROY FOODS or GENTRY are still inactive parties, then GILROY FOODS and GENTRY must elect to either: a. Become a permanent user and relinquish all rights under paragraph four (4), or ----....---- ------ - b-;--Wi-t-hd-raw-f~he-sys-t~m-as- se-t.-f-Orth in paragraph_.fouz--'4) ,,_ox c. Transfer all or part of their unused capacity, as needed, to the new user, in which case the new user (i) shall assume in writing its percentage of unpaid bond and 1985 Pipeline costs, and (ii) reimburse ~ILROY FOODS and GENTRY within 30 days for their contributions to the 1985 Pipeline project costs in proportion to the capacity transferred. .. Any revenue generated from agricultural or other use of the land will be credited to the Other Parties by crediting 60% thereof based on actual yearly usage of each and 40% under paragraph one (1) percentages. 7. Except as modified herein, the Sewer Revenue Agreement of 1980 between these parties and their predecessors in interest shall remain in full force and effect. IN WITNESS WHEREOF, ~he City being authorized by motion of its City Council duly adopted, has caused this agreement to be executed by the Mayor and attested by the City Clerk, and each of the Other Parties being euthorized by valid and subsisting action of its Board of Directors, duly .-opted. has caused this agreement to be executed in its behalf by its Exhibit "A" -2- 't ,! . . officers duly authorized, all as of June 1, 1986, with actual execution occurring on the date set out after the respective signatures appearing belo\.:. CTY OF GILROY By~a~ I Mayor Pro tempore Executed this 2nd June day of 1986 ATTEST: By: By 'Title: Executed this Z-/f - -~ ----~;;; -- - - day of -- -l:'9"8-~'~----- ATTEST: t2.~~/kA-- , /)~ ,!Secretary (Seal) GILROY CANNING COMPA1~ _.~~:t- ~ !itle: ~~J~ .29~ay of 1986 Executed this ~ b.TIEST: Secretary (Seal) Exhibit ItA"~ -3- . t ~,' . /2 S-Cb~ ~ ( Seal) ATTEST: ------.......~_. --.---.-- -- --~-'~----- Secretary (Seal) . GENTRY FOODS CORP. By Iv 11!1Q~""we-<- Title: f).fJ. &dI'~b Executed this 2-7 fr., day of H7 1986 GARDEN VALLEY FOODS Titl::~ !xecuted this ~~ __' ~u1I_ day of 1986.. Exhibit "A" -4- . . . . I, SUSANNE E. STEINMETZ; City Clerk of the City of Gilroy, do hereby, certify that the attached Resolution No. 86-37 is an original resolution, duly adopted by -the Council of the City of Gilroy at a regular meeting of said Council held on the 16th day of June 19 ~, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 19th day of June 19 ~. ad. '#mJ ~erk of