09-0616_SOUTH COAST WATER DISTRICT_D12_Agenda Report6/16/2009
AGENDA ITEM D12
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TO: Dave Adams, City Manager 0'
FROM: Joe Tait, Acting Utilities Director
SUBJECT: Consideration of the Termination of the Water Service Agreement and
Lease of Capacity Rights at Del Obispo connection and the Establishment
of an Emergency Interconnection at Dei Obispo connection with South
Coast Water District (SCWD).
RECOMMENDATION: F
By motion,
1 Authorize the Mayor to Execute The Termination of the Water Service
Agreement and Lease of Capacity Rights at Del Obispo connection and the
Establishment of an Emergency Interconnection at Del Obispo with South Coast
Water District (SCWD); and,
2. Direct the City Clerk to process the recording of the documents.
SITUATION:
Since .1996, the City had been drawing water into its water system from an emergency
service connection at Del Obispo ("Del Obispo connection") installed on the Joint
Regional Water Supply System (JRWSS) main that extends from the Coastal Junction
at the terminus of the East Orange County Feeder No. 2 to the Brandt Reservoir
located in the City of San Clemente. This water was used for operational purposes to
stabilize water pressure in homes and businesses in the south portion of San Juan
Capistrano during high demand periods. The parties that held capacity rights in the
JRWSS Main designated SCWD as operator pursuant to a "Joint Exercise of Powers
Agreement to Operate and Maintain Joint JWRSS Main dated March 31, 2000. On
November 21, 2000 the City entered into a formal agreement with SCWD to lease 1.5
cubic feet per second of capacity for a lease payment of $60,000 per year. The City's
construction of capital facilities including the Nigh West Side pipeline, the Cooks
Reservoir, and the Ground Water Recovery Plant have sufficiently strengthened the
distribution system so as to eliminate the need for high demand capacity from the Del
Obispo connection.
The Del Obispo connection was originally intended for emergency use, and is now
being restored to that function. City staff will continue to operate and use this
emergency interconnection as it does for other emergency connections. Operations
require a manual turn -on and turn-off of the valve feeding water from the JWRSS main
to the City system. An emergency is defined as an unusual disruption in service
AGENDA ITEM
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June 16, 2009
caused by a line break or construction activity that disrupts the normal means of
providing service. The interconnection is interruptible if the JWRSS operators
determine it is unable to provide water to the City. No additional facilities will be
constructed as park of this conversion. Staff recommends entering into the agreement.
COMMISSION REVIEW AND RECOMMENDATIONS:
This Agreement was reviewed by the Utilities Commission at its meeting of March 24,
2009. The Commission recommends the Council approve the Agreement.
FINANCIAL CONSIDERATIONS:
Entering into this agreement will terminate the payment of an annual fee to $60,000 to
JWRSS for the leased capacity of 1.5 cubic feet per second. The cost of operations
and maintenance of this facility are included in the operations budget. There are no
additional costs associated with the execution of this agreement.
NOTIFICATION:
South Coast Water District
RECOMMENDATION:
By motion,
1. Authorize the Mayor to Execute The Termination of the Water Service
Agreement and Lease of Capacity Rights at Del Obispo connection and the
Establishment of an Emergency Interconnection at Del. Obispo with South Coast
Water District (SCWD); and,
2. Direct the City Clerk to process the recording of the documents.
Respectfully submitted,
jv;:�
Joe Tait
Acting Utilities Director
Prepared by,
Eric P. Bauman
Utilities Engineer
Attachment. 1. Lease Termination Agreement
AGREEMENT FOR THE TERMINATION OF THE WATER SERVICE AND LEASE OF
CAPACTIY RIGHTS AT DEL OBISPO AND THE ESTABLISHMNET OF AN
EMERGENCY INTERCONNECTION BETWEEN CITY OF SAN JUAN CAPISTRANO
AND SOUTH COAST WATER DISTRICT AT DEL OBISPO
This Termination of the Water Service Agreement and Lease of Capacity Rights at Del
Obispo connection and the Establishment of an Emergency Interconnection at Del Obispo
("Agreement") is entered into is to be effective the day of , 2009 by
and between the South Coast Water District ("SCWD"), a water district organized and
existing under the County Water District Law, Water Code §§30000 et seg., in its capacity
as operator of the Joint Regional Water Supply System (formerly known as the Joint
Transmission Main) and the City of San Juan Capistrano, a municipal corporation ("City").
SCWD and City are sometimes collectively referred to in this Agreement as the "Parties".
RECITALS
A. SCWD is the designated operator of a certain "Joint Regional Water Supply
System," (JRWSS) a domestic water pipeline that conveys water imported from the
Metropolitan Water District of Southern California. The JRWSS main extends from the
Coastal Junction at the terminus of the East Orange County Feeder No. 2 to the Brandt
Reservoir located in the City of San Clemente. The parties that hold capacity or property
rights in the JRWSS Main have designated SCWD as operator pursuant to a "Joint
Exercise of Powers Agreement to Operate and Maintain the JWRSS Main dated March 31,
2000. SCWD replaced the Tri -Cities Municipal Water District ("TCMWD") as operator of
the Joint Transmission Main, effective March 31, 2000.
B. City wishes to end its Lease of Capacity and obtain an Emergency source of
water supply to certain areas within its boundaries via the existing Del Obispo Connection
effective June 30, 2009.
C. The. water purchased by City from SCWD shall be measured and controlled
through a Water Meter Station owned and operated by City.
NOW THEREFORE in consideration of the mutual covenants and conditions herein
contained, the parties hereby agree as follows:
AGREEMENT
Water Supply. Subject to the terms and conditions of this Agreement, during an
Emergency, and if SCWD in its own discretion has the capacity in the JRWSS main;
SCWD agrees to provide water to City; using the Del Obispo connection.
2 Emergency. For the purpose of this Agreement an "Emergency" will be defined as
an unusual service disruption including, but not limited to a line break or construction that
ATTACHMENT 1
disrupts the normal means of providing service.
3) Location of Del Obispo Connection. The Dei Obispo connection is located within the
public right of way of Del Obispo Street , approximately 600 feet north of its intersection
with Stonehill Drive.
4) Construction of Facilities. The Del Obispo connection is an existing connection,
requiring no modifications at this point.
5) Ownership and Maintenance of the Facilitates. The water meter vault, water meter,
the Pressure Reducing Valve (PRV), collectively "the Del Obispo connection," and the
pipeline from the Del Obispo connection into the CITY system will be owned, maintained,
and operated by CITY. SCWD in its capacity as the operator of the JRWSS main will
operate and maintain the JWRSS main that supplies the Del Obispo connection.
5) Fees and Payments. The Parties hereby agree to terminate the Water Service
Agreement and Lease of Capacity Rights at Del Obispo connection. The fiscal year ending
June 30, 2009 will be the last year for which the annual lease payments are due. Starting
July 1, 2009, and subject to the terms and conditions of this Agreement, SCWD will sell
water to City at the prevailing MWDOC water rates and charges, including cost for peaking
charges should the utilization of the Dei Obispo connection impact the assessment of the
peaking charges assessed to JRWSS.
7) Interruptible Water Supply. The parties acknowledge and agree that SCWD's sale
of water to City for its emergency water supply needs is subject to interruption at any time,
and for any length of time, in the event SCWD determines in its sole discretion that the
participants in JRWSS require the water for their own needs.
,8) Waiver. Each party waives and releases all claims and recourse against the other
party, including the right of contribution for loss or damage of persons or property, arising
out of or in any way connected with the interruption of the water supply under this
Agreement and with the matters each party is obligated to indemnify the other party from
and/or against as set forth in Section 9 below.
9) Indemnity. Each party hereby agrees to mutually indemnify and hold the other party
harmless from any and all claims, demands, causes of action, damages, costs and
expenses, including attorneys fees, property damage, bodily injuries, personal injury,
losses or liabilities, in law or in equity, of every kind and nature to the extent that the same
are the result of an error, omission or negligent act of the indemnifying party, its officers or
employees, or any other person acting pursuant to its control in performing under this
Agreement.
10) Insurance. Each party will maintain their own insurance as required by law.
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11 Attorney's Fees. If either party hereto commences any action to enforce any
provision of this Agreement, the prevailing party shall be entitled to receive from the other
party, in addition to damages, equitable or other relief, all costs and expenses incurred,
including reasonable attorney's fees.
12 Successors. This Agreement will be binding upon and inure to the benefit of the
parties' successors hereto.
13 Waiver. The failure of either party to insist on compliance with any of the terms,
covenants, or conditions of this Agreement by the other party shall not be deemed a waiver
of such terms, covenants, or conditions of this Agreement by the other party, nor shall any
waiver or relinquishment of any right or power conferred by this Agreement at any other
time, or times, by a party be deemed a waiver or relinquishment of that right or power for all
or any other times.
14) Severability. If any part of this Agreement is held to be illegal or unenforceable or
void for any reason by a court of competent jurisdiction, the validity of enforceability of this
Agreement as a whole shall not be affected and the remainder. and all other provisions of
this Agreement shall be given affect to the maximum extent permissible by law.
151 Entire Agreement. This Agreement supersedes any and all agreements between
the parties with respect to the subject matter herein, and contains the entire agreement
between the parties with respect to those matters.
6 Amendment. No addition to or modification of any provision contained in this
Agreement shall be effective unless fully set forth in a writing signed by both parties.
17) Notice. Any notice required or permitted to be given hereunder shall be deemed to
have been validly or given or made only if in writing and when received by the party to
whom it is directed by personal service, hand delivery, or United States Mail as follows:
If to SCWD: Mr. Mike Dunbar, General Manager
South Coast Water District
P.O. Box 30205
Laguna Niguel, CA 92607-0205
If to City: Eric Bauman, Utilities Engineer
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Either party may change its address above at any time by written notice to the other.
18) Recitals/Exhibits: Counterparts. The parties acknowledge and agree the Recitals
are true and correct and are incorporated in this Agreement. The Exhibits referenced in
this Agreement and attached to this Agreement are incorporated herein. This Agreement
may be executed in counterparts, each of which shall be deemed an original.
19.) Termination. Except for the termination of the Water Service`Agreement and Lease
of Capacity Rights at Del Obispo Connection, which shall be final, either party may
terminate this Agreement at any time upon five days notice to the other.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed.
Date: , 2009
ATTEST:
City Clerk
Date: , 2009
ATTEST:
By:
Secretary
APPROVED AS TO FORM:
By:
General Counsel
CITY OF SAN JUAN CAPISTRANO
By:
Mark Nielsen, Mayor
APPROVED AS TO FORM:
City Attorney
SOUTH COAST WATER DISTRICT
M
1,
Mike Dunbar, General Manager