Resolution Number 21-10-19-02' RESOLUTION NO. 21-10-19-02
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO
EXECUTE CERTAIN WATER RIGHTS TRANSFER AGREEMENTS
BETWEEN THE CITY AND THE SANTA MARGARITA WATER DISTRICT
("SMWD") IN CONNECTION WITH THE TRANSFER OF THE CITY'S
WATER AND WASTEWATER UTILITIES ("UTILITIES SYSTEMS") TO
SMWD, AND AUTHORIZING THE CITY MANAGER TO TAKE CERTAIN
ACTIONS TO EFFECTUATE THE TRANSFER OF THE UTILITIES
SYSTEMS
WHEREAS, the City of San Juan Capistrano ("City") and Santa Margarita Water
District ("SMWD") entered into an Annexation Agreement, dated as of January 21, 2020,
to: (i) set forth certain key terms to be incorporated into the Orange County Local Agency
Formation Commission ("LAFCO") Application for annexation by, and transfer to SMWD
of the City's Utilities Systems (as defined in the Annexation Agreement), and (ii) address
how other matters pertaining to the annexation and transfer of the City's Utilities Systems
to SMWD will be carried out by the City and SMWD. The Annexation Agreement
contemplates that the City and SMWD will enter into various Collateral Agreements and
Documents (as defined in the Annexation Agreement) and need to take other actions to
' effectuate the annexation and transfer of the City's Utilities Systems;
WHEREAS, pursuant to Section 6.4 of the Annexation Agreement, the City and
SMWD negotiated certain water rights transfer agreements ("Water Rights Transfer
Agreements") pursuant to which the City will transfer to SMWD the City Water Rights (as
defined in the Annexation Agreement). At the April 20, 2021 City Council meeting, the
City Council: (i) approved the Water Rights Transfer Agreements; (ii) authorized staff, in
consultation with legal counsel, to make non -substantial modifications to the Water Rights
Transfer Agreements as may be agreed to by the parties and as may be necessary to
conform the Water Rights Transfer Agreements to the LAFCO decision; and (iii)
authorized the Mayor to execute the Water Rights Transfer Agreements following
LAFCO's issuance of the certificate of completion for the annexation ("Certificate of
Completion");
WHEREAS, on August 19, 2021, LAFCO adopted its Resolution No. DA 20-01
approving the annexation. Section 3(e) of LAFCO Resolution No. DA 20-01 requires that
the City and SMWD execute and deliver to LAFCO the Water Rights Transfer Agreements
following LAFCO's approval of the annexation and prior to LAFCO recording the
Certificate of Completion;
WHEREAS, the City Council now desires to authorize the City Manager to execute
and deliver the Water Rights Transfer Agreements, at his earliest convenience, in order
' to deliver the Water Rights Transfer Agreements to LAFCO prior to LAFCO recording the
Certificate of Completion; and
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WHEREAS, the City Council, also desires to delegate to the City Manager the ,
authority to do all things which he may deem necessary, proper, or both, to effectuate the
purposes of the Annexation Agreement or any Collateral Agreements and Documents,
and to comply with the requirements of LAFCO Resolution No. DA 20-01.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San
Juan Capistrano that:
1. The above recitals are true and correct and are a substantive part of this
Resolution.
2. The City Manager is hereby authorized to execute and deliver, for and in
the name of the City, the Water Rights Transfer Agreements, in substantially such form
as approved by the City Council on April 20, 2021, with such non -substantial modifications
to the Water Rights Transfer Agreements as may be agreed to by the City Manager in
consultation with the City's legal counsel. Approval of any non -substantial modifications
shall be conclusively evidenced by the City Manager's execution and delivery of the Water
Rights Transfer Agreements.
3. The City Manager and his designees are hereby authorized, in consultation
with the City's legal counsel, to do all things which they may deem necessary, proper, or
both, to effectuate the purposes of the Annexation Agreement and the Collateral
Agreements and Documents, or to otherwise comply with the requirements of LAFCO '
Resolution No. DA 20-01, including, but not limited to, the preparation, approval,
execution, recordation, and delivery of Collateral Agreements and Documents, including
without limitation the amendment, assignment or termination of agreements with vendors
in connection with the Utilities Systems. Notwithstanding the forgoing provisions, the
Assignment Agreement (as defined in the Annexation Agreement) and any amendments
thereto, and any amendments to the Annexation Agreement, shall be approved by the
City Council, unless such amendment(s) is consistent with Council's approval of the
underlying agreement and is necessary, proper, or both, to effectuate the Annexation in
a timely manner.
4. This Resolution shall be effective upon adoption.
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PASSED, APPROVED AND ADOPTED this 19th day of October 2021.
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF SAN JUAN CAPISTRANO
JOHN TAYLOR, MAYOR
ss.
' I, Maria Morris, appointed City Clerk of the City of San Juan Capistrano, do hereby certify
that the foregoing Resolution No. 21-10-19-02 was duly adopted by the
City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the
19th day of October 2021, by the following vote:
AYES: COU IL MEMBERS:
NOES: U CIL MEMBERS:
ABSEN lV CIL MEMBERS
CITY
Reeve, Hart, Bourne, Farias and Mayor Taylor
None
None
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