04-0113_SAN JUAN BASIN AUTHORITY_Term of the Brine Line and Ocean Outfall AgrTERMINATION OF THE BRINE LINE AND
OCEAN OUTFALL AGREEMENT
This Agreement is made and entered into as of this 13th day of January, 2004 by and among
the SAN JUAN BASIN AUTHORITY, a joint exercise of powers authority organized and existing to
Chapter 5, Division 7 (commencing at Section 6500) of the Government Code of the State of
California (herein after referred to as "Authority"), the CITY OF SAN JUAN CAPISTRANO, a
municipal corporation (hereinafter referred to as "City").
RECITALS:
1. On the 13`h day of August, 1981, the City, the Dana Point Sanitary District
(hereinafter referred to as "Dana Point') and the Orange County Waterworks District No. 4
(hereinafter referred to as. "Waterworks District') entered into an agreement which provided that the
Dana Point/San Juan Capistrano Ocean Outfall (hereinafter referred to as the "Outfall'), which was
owned by the City and the Dana Point, in the following percentages: City 45.25%, Dana Point
54.75%, would be leased to the Waterworks District for fifty-five (55) years with the City receiving
45.25% of each lease payment and Dana Point receiveing 54.75% of each payment. Subsequent to
that agreement, Dana Point was merged into the South Coast Water District (hereinafter referred to
as "South Coast') and all assets of Dana Point became property of South Coast, thus, South Coast
owns 54.75% of the Outfall.
2. On August 18, 1981, the Authority and the Waterworks District entered into the
Brine Line and Ocean Outfall Agreement (the "Outfall Agreement'). The Waterworks District
became the Capistrano Valley Water District, a subsidiary district of the City and subsequently
merged into and became a part of the City.
DOCS001017870v3\22027.0000
3. Pursuant to the Outfall Agreement, the Authority entered into the lease of the Outfall
for the purpose of connecting its Brine Line to the Outfall to discharge brine water collected at the
Authority's Barrier project and/or the wells as defined in the Outfall Agreement into the ocean.
4. The Outfall Agreement provides that the Authority pay to the Waterworks District
(now the City) annual payments of $4,000 per year until such time as the Authority uses the Outfall
and thereafter said payments shall be made at the rate of $8,000 per year for a period of fifty-five
years.
5. For a brief period, the Authority attempted to use the Outfall and commenced paying
$8,000 per year pursuant to the Outfall Agreement, however, the Outfall was in such poor condition
that the San Diego Regional Water Quality Control Board prohibited the use of the Outfall to
discharge brine water. Furthermore, the Authority has not been operating the Barrier project to
collect brine to discharge into the Outfall.
6. On October 1, 2003, the members of the Authority which includes the Santa
Margarita Water District, the Moulton Niguel Water District, the City and South Coast determined
that the Authority is not receiving any value from the lease of the Outfall and they unanimously
agreed that the Outfall Agreement should be terminated.
NOW, THEREFORE, in consideration of mutual terms, covenants and conditions herein
contained the parties do hereby agree as follows:
SECTION 1. The Outfall Agreement is terminated as of January 1, 2004. The Authority
shall not be required to make any future lease payments or expenses relating to the Outfall and any
unpaid expenses and any unpaid lease payments are hereby cancelled.
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SECTION 2. The Authority shall not be responsible for the future or past maintenance of
the Outfall and the City agrees that the Authority has not incurred any cost or expenses that has or
may arise or be caused in any way by the use, operation or failure of the Outfall.
SECTION 3. The provisions of this Agreement shall inure to the benefit and be binding
upon the parties and their successors and assigns.
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IN WITNESS HEREOF, the parties hereto execute this Agreement as of the date hereby
written above.
SAN JUAN BASIN AUTHORITY
i
By: n c �
Presi ent
ATTEST:
Secretary
CITY
In
ATTEST:
R. Monahan, City Clerk
Approved as to form:
John S aw, City Attorney
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Soto, Mayor