RESOLUTION NO. 2002-17

 

A RESOLUTION ESTABLISHING ZONE NO. 103 AND

UNDERTAKING A PROJECT THEREIN

 

WHEREAS, the SAN BENITO COUNTY WATER DISTRICT (“District”) is vested with the power to do any and every lawful act necessary so that sufficient water may be available for any present or future beneficial use or uses on the lands or for the inhabitants within the District including the storage and distribution of water for domestic, fire protection and municipal uses; and

 

          WHEREAS, the District is further vested with the power to acquire by grant or otherwise, and to hold, use and enjoy real and personal property of every kind including land, structures, and buildings, and to alter and operate any and all works or improvements necessary to carry out the purposes of the District; and

 

          WHEREAS, CANYON VIEW OAKS, INC., AND PHIL PEARCE (“Owner”) are the owners of land, water rights and water facilities which are operated and maintained by Owner as required by the County of San Benito; and

 

          WHEREAS, more than 50% of the landowners in the Harmony Hills Subdivision petitioned the District requesting that the District take over the water rights, water system and facilities and that the District own, operate and maintain said system and rehabilitate same for the benefit and at the expense of said landowners and water users; and

 

          WHEREAS, the project covered by this resolution is for the transfer of water rights, land rights and water facilities to the District and continued operation and maintenance of same; and

 

          WHEREAS, on June 26, 2002, the Board of Directors of the District adopted a Resolution of Intention to Create a Zone of Benefit and Undertake Said Project; and

 

          WHEREAS, on October 29, 2002, the District Board of Directors held a continued public hearing, published and posted in compliance with Water Code Appendix §70-15; and

 

          WHEREAS, at said public hearing the Board considered all written and oral evidence pertaining to the creation of a zone of benefit and institution of the project described herein within said zone; and

 

          WHEREAS, a majority of the electors within said proposed zone did not file written protests against the proposed project prior to the conclusion of the hearing.


NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

 

          1.       The Board of Directors of the District hereby establishes a zone of benefit for the Harmony Hills Subdivision, which zone shall be known as “Zone No. 103.”  Zone No. 103 is established for the purpose of owning, operating and maintaining water production and service facilities previously owned and operated by the Owner (the “PROJECT”), and for the restoration and rehabilitation of these facilities to meet current standards of public health and safety under the California Safe Drinking Water Act. 

 

          2.       A map describing the zone boundaries, is attached to this Resolution as Exhibit “A.”

 

          3.       Rates and charges to be assessed within said zone for the purpose of operating, maintaining, extending, repairing, or otherwise improving the system, for service of water within said zone and for repayment of debt, shall be established by ordinance of this District subsequent to the adoption of this resolution.  Further, the District, Owner, and Harmony Hills Landowners shall enter into an Agreement transferring a fee interest and other interests sufficient to accomplish the purposes of the PROJECT in land, all springs and well sites, tank sites, pipeline and facility rights of way, water rights and water production, storage and service facilities to District.  This resolution shall not become effective unless and until the public hearing pursuant to the California Constitution, Articles XIII C and D, has been conducted without a majority protest, an ordinance establishing rates and charges has been adopted and a Transfer Agreement has been signed.  If a majority of electors protest the adoption of the rates and charges, or the parties fail to enter into a transfer agreement within 60 days from adoption of this resolution, all proceedings to create a zone of benefit and a project therein shall terminate.

          In addition to other terms for the transfer of land and facilities, the Transfer Agreement shall provide that Owner and Harmony Hills Landowners shall indemnify, defend and save harmless the District and it officers, employees and agents from all claims, liabilities, causes of action, and damages, including reasonable attorney’s fees, arising from the condition of the facilities, quality and quantity of water (including the system’s failure to meet California Safe Drinking Water standards), and operation and maintenance of the water facilities prior to the District’s assumption of ownership of the land and water facilities.  The hold harmless set forth in this paragraph shall continue after the District assumes ownership as to claims relating to Owner’s operation and maintenance of the facilities prior to such assumption by the District and which claims are made after the District assumes ownership.

 

          4.       Pursuant to Water Code Appendix Section 70-16 and 70-17, Zone 103 shall be included in the Administrative Assessment Zone.  This Resolution shall not become effective unless and until the District has successfully negotiated an agreement with the County of San Benito to apply the current Administrative Assessment Zone share in the 1% maximum tax on real property under Article 13A of the California Constitution to the lands of Zone 103.   

 

          5.       After the effective date of this Resolution, a majority of electors, as defined in Resolution No. 2002-11, may petition the Board of Directors in writing to terminate the project.  Should such a petition be filed with the Board, the Board shall, subsequent to a hearing thereon, terminate the project and order the transfer of all property and facilities, previously conveyed to District, together with all assets and loan obligations of the Zone to the appropriate entity for service to all lands within Zone 103.  The transfer shall not be effective unless and until the entity and transfer are approved by the State of California, Department of Health Services.  Concurrently with the termination of the project, the District Board shall dissolve Zone No. 103 in accordance with the procedures set forth in Water Code Appendix Section 70-12.2.  Thereafter, the District shall be relieved of any further liabilities or responsibilities with regard to said water system.

 

          6.       The District shall conduct a public hearing at least annually and report to the Board and Zone 103 constituents as to the physical and financial condition of the system.  The Ordinance establishing rates and charges shall also be reviewed and modified, as necessary, at said annual meeting.  The District shall meet with the landowners and customers of Zone 103 or their representative at least 15 calendar days before the public hearing.

 

          7.       It is hereby determined that the PROJECT described in this Resolution, to wit, the transfer of ownership of water facilities and the continued operation and maintenance of these facilities, is categorically exempt pursuant to Section 15301(d) of the CEQA Guidelines.

 

          The foregoing Resolution was passed and adopted at a Regular Meeting of the Board of Directors of the San Benito County Water District held on October 29,  2002, by the following vote:

 

AYES:                   DIRECTORS:   Keck, Tobias, DeLaCruz

NOES:                  DIRECTORS:   None

ABSENT:     DIRECTORS:      Swanson, Perry

 

 

 

_____/s/Douglas Keck__________________

Douglas Keck

President

 

 

ATTEST:      __/s/Janet L. Miller___________

                   Janet L. Miller

                   Administrative Services Officer