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08-0820_MUNICIPAL WATER DISTRICT OF OC_Agency Participation AgreementFINAL v.8 6-10-08
Agency Participation Agreement for
Phase 3 -- Extended Pumping and Pilot Plant Testing
Dana Point Ocean Water Desalination Project
This agreement (Agreement) between the Municipal Water District of Orange County
(MWDOC), South Coast Water District (SCWD), Laguna Beach County Water District, Moulton
Niguel Water District, the City of San Clemente (CSC) and the City of San Juan Capistrano
(CSJC) (Parties, or individually, Party), establishes a framework for cooperation with regard to
the next stage, referred to herein as "Phase 3," in the Dana Point Ocean Water Desalination
Project (Project), which consists primarily of work related to extended pumping and pilot plant
testing.
RECITALS:
A. The Parties are water agencies operating within Orange County, California, and all share
a responsibility for ensuring a reliable water supply for the area they serve. Each Party,
through its forming legislation, has the authority to develop water supply sources and
work for the development of such sources (see, for example, Water Code Section 31020
et seq.). Under Government Code Section 6502, the Parties may work cooperatively for
the development of a project benefiting a common purpose.
B. Each Party has independently identified ocean water desalination as part of its plan to
ensure water supply reliability.
C. A site owned by SCWD adjacent to San Juan Creep in the City of Dana Point, California
(Site) has been identified by MWDOC as an appropriate location for the Project due to
its proximity to the Pacific Ocean, and MWDOC and SCWD have entered.. into a
Memorandum of Understanding dated April 27, 2006, attached hereto as Attachment A
and incorporated herein by this reference, establishing access and other rights to the
Site for purposes of continuing a feasibility study.
D. MWDOC has pursued development of the Project for several years as a participant in
Metropolitan Water District of Southern California's (Metropolitan) Seawater Desalination
Program to preserve the option to receive incentive funding of up to $250 per acre foot
once the ocean desalination plant begins to produce water. MWDOC has also entered
into an agreement with the California Department of Water Resources (DWR) to receive
$1.5 million toward the cost of developing a pilot plant as part of the Phase 3 work
activities. MWDOC is working to obtain additional state, federal and Metropolitan
funding for Phase 3 work activities as well as for construction of the full-scale plant.
E: Preliminary feasibility studies for the Project at the Site have been completed, and the
Parties now wish to move on to Phase 3 of the investigation, which will involve extended
pumping of the slant well previously constructed (Test Slant Well) and development of a
Pilot Plant to test treatment processes, as described in Section 1.2 of this Agreement. If
the Phase 3 feasibility work is successful in demonstrating that the Project can be
implemented in a cost-effective manner, the Parties intend to move forward with
implementation of the Project via a formal Joint Powers Agreement in which each
implementing party will have a specific agreed-upon Project capacity. The Parties intend
that under a Joint Powers Agreement, each agency will pay its proportionate share of
FINAL v.8 6-10-08
project capital, operations and maintenance costs, and that contributions for such costs
will be based on project capacity ownership, irrespective of whether water was received
from the plant or another source.
THEREFORE, the Parties agree as follows:
1. Introduction
The Parties' purpose in entering into this Agency Participation Agreement for Phase 3 —
Extended Pumping and Pilot Plant Testing ("Agreement") is to establish procedures and a
framework that will facilitate collective decisions involving cost sharing and other issues related
to the activities required for the next stage of the Project, which will consist mainly of extended
pumping of the Test Slant Well and pilot plant testing. Extended pumping of the Test Slant Well
is necessary to (1) pull in ocean water to test water quality and conduct pilot plant process
treatment evaluation studies, (2) determine the effectiveness of the slant well to provide
pretreatment, (3) validate the groundwater model for full scale feedwater capacity, (4) determine
the impacts on operation of existing groundwater facilities and the lower San Juan Basin as a
whole, and (5) update and refine the engineering cost estimate for the Project. MWDOC will
provide staff support to facilitate execution of the work, and all Parties will share the cost of the
work as provided herein.
1.1 Estimated Phase 3 Costs to be Shared
Total cost for this Phase 3 work is estimated at $4,800,000. To date, $1,500,000 in
Proposition 50 grant funds have been secured by MWDOC from DWR (DWR Grant). The net
cost to the Parties is thus estimated to be approximately $3,300,000, which will be divided
among the Parties as provided herein. Efforts to secure funds from other sources will continue
by MWDOC with support of the other parties, and additional funding available for the Project
could reduce the share of costs owed.
1.2 Phase 3 Work
Phase 3 work activities for the Project are anticipated to include, in general terms, the
following:
• Preparation of the engineering services request for proposals for the Project
• Development of a Pilot Plant test plan
• Completion of CEQA and NEPA environmental documentation for the test plan
• Permitting for the test plan
• Negotiation of mitigation fees with State Parks for use of the Doheny State Beach
• Design and procurement as needed for the pumping and pilot plant facilities
• Installation of the test facilities
• Conduct extended pumping test and water duality sampling
• Installation and pilot plant process testing
• Completion of hydrogeology and groundwater modeling update
• Assessment of Project impacts on the lower San Juan Basin
• Preparation of draft and final reports
• Periodic service and download data from the two monitoring wells
4
FINAL v.8 6-10-08
Begin work on determining the terms and conditions for the following items: (1) obtaining
capacity in the San Juan Creek Ocean Outfall and (2) securing a land lease for the
Project site from SCWD. This work will include, at a minimum, development of rough.
cost estimates for each item and development of a cost proposal and schedule for
completing the work on both items. More advanced work on these items will not be
initiated until a budget is approved by the governing boards or councils or the PPC, as
required.
2 Proiect Participation Committee
2.1 Direction needed on an ongoing basis and related to the progress of the work
shall be provided by a "Project Participation Committee" (PPC). The PPC will be
comprised of one staff member and one governing board member or city council
member from each of the Parties, including MWDOC, as designated by their
respective. governing boards or city councils. For purposes of voting on an item
within the limited powers of the PPC, as established herein, each Party shall
have one vote except MWDOC, which shall be a non-voting member of the PPC.
MWDOC may otherwise fully participate in all PPC meetings.
2.2 Decisions related to initial participation in the Agreement and any amendment to
the Agreement, including but not limited to amendments to add Parties to the
Agreement and amendments related to funding or cost sharing, shall be made by
the Parties' governing boards or city councils. In the interest of efficiency and
economy, other decisions related to the ongoing implementation of Phase 3 that
will not amend the terms of the Agreement shall be subject only to PPC approval
by at least a 213 vote of all Parties,
2.3 All Parties except MWDOC shall share in the cost of each item of work approved
by the Parties up to the actual total amount expended and shared between the
Parties to a total of $3.3 million (the "Agreement Estimated Cost"). Expenditures
that would bring the total shared expenditures above the Agreement Estimated
Cost shall be subject to review and approval of the governing body of each Party
and must be approved as an amendment to this Agreement prior to expenditure.
3 SCWD's Obligations
SCWD's obligations include, without limitation, the following:
3.1 SCWD owns the Site and shall in that capacity interface with the State Park at
Doheny and other local interests or agencies that have questions or concerns
about the Project.
3.2 SCWD will provide funds to pay for its portion of shared costs consistent with this
Agreement, as directed by the PPC.
3.3 SCWD is hereby designated as the local agency primarily responsible for the
Project. In this capacity, SCWD's PPC Committee member shall preside over
meetings of the PPC.
3.4 SCWD shall work closely with MWDOC as needed and will be responsible for
providing information about the PPC to the other local agencies.
3.5 SCWD shall cooperate with MWDOC in seeking outside funding for the work
activities.
3
FINAL v.8 6-10-08
3.6 In entering contracts on behalf of the PPC, SCWD shall require contractors and
consultants to name the individual agency members of the PPG as additional
insureds for coverage related to the Project.
4 MWDOC's Obligations
MWDOC's obligations include, without limitation, the following:
4.1 Provide staff time to outline and manage the work activities. This includes
working with the various consultants authorized by the PPC to complete the
Project tasks.
4.2 Serve as the lead agency for CEQA compliance
4.3 Coordinate with appropriate federal agencies, as needed, for NEPA compliance
4.4 Acquire all necessary permits, in its name
4.5 Evaluate alternatives and make recommendations to the PPC
4.6 Facilitate formation of a technical advisory panel for the Project, if and when PPC
deems one necessary
4.7 Work with the various Parties to ensure they have all available information
4.8 Work with Metropolitan to bring its resources and expertise into the Project
4.9 Work to secure outside funding from State and Federal agencies, Metropolitan
and other sources as appropriate and use these funds to reduce the costs to the
Parties
4.10 MWOOC shall be responsible for providing accountings for the costs of all work
completed and shall be responsible for invoicing and collecting deposits from
each participating agency to cover the estimated costs on a periodic basis.
4.11 Administer grants, including the DWR Grant.
4.12 Utilize grant and other funding, if the same becomes available and applicable, to
reimburse the Parties or reduce future participation costs.
4.13 In entering contracts on behalf of the PPC, MWDOC shall require contractors
and consultants to name the individual agency members of the PPC as additional
insureds for coverage related to the Project.
5 Other Local Agency Obligations
Obligations of the other Parties shall include, without limitation, the following:
5.1 Provide funds to pay for its portion of shared costs consistent with this
Agreement, as directed by the PPC.
5.2 Attend and participate in PPC meetings.
5.3 Provide assistance and support to MWDOC in seeking outside funding for the
work activities.
6 Amendment to Add Parties
After execution of this Agreement, other public water entities may be added as Parties to
the Agreement and participate in the PPC only upon a written amendment to the Agreement
approved unanimously by all Parties. The PPC shall propose for each such amendment the
terms and conditions for adding a particular agency to the Agreement and the written
amendment shall be prepared accordingly by MWDOC. These terms and conditions will include
4
FINAL v.3 0-10-08
a determination: by the PPC, pursuant to the provisions of Section-. 8 of this Agreement, of an
appropriate payment amount for a share of past costs.
7 Time Is of the essence
Time is of the essence in the performance of all obligations under this
Agreement. The schedule presented by MWDOC requires that the Califbrni'a Coastal)
Commission (CCC) CoastalDevelopment Permit (CDP) be approved on or before the
December 2008 meeting of the CCC to allow the work to proceed on'the beach in, 2009. Before
the CDP application can. be deemed complete and eligible for consideratibn by the CCC, other
permits must first be acquired. These include permits from State Parks, Regionat Water Quality
Control Board:,, State Lands Commission Lease and jurisdiction determinations ar-d
consultations with US Corps of Engineers, Fish & Wildlife Service, National Marine Fisheries,
and California Department of Fish & Game, The Parties shall make every effort to avoid any
and all: delay in the submittal or processing of the applications for these permits. The
anticipated Major Activities Schedule is provided in the table below:
All Parties except: MWDOC (MWDOC is not a local funding partner) shall share equally
in the cost of the Phase 3 work moving forward, irrespective of bow they, voted when the matter
came before the PPC for approval. MWDOC shall administer the DWR Grant funding of
$1,500,000.00', for the Project in accordance with the grant terms_ A proportionate divisian of
costs shall be calculated by the PPC and invoiced to the Parties, by MWDOC. Payment of costs
for Phase 3 work shall result in a dollar "entitlement" for each contributing Party or an "adjusted
entitlement" (if changes are made as outlined below). The "entitlement"' or "adjusted
entitlement" amount shall be used at certain times as outlined below to reimburse, Parties who
may be ceasing their participation or if the project proceeds to the construction phase:
5
FINAL v.8 6-10-08
a. if a Party decides to stop funding the Project as provided herein, and if
another public water entity expresses an interest in joining the
Agreement, all of the existing Parties shall have a first right of refusal
to take over a portion of the entitlement (in accordance with their
proportion of all entitlements interested in receiving a portion of the
entitlement being given up) of the Party that stopped its funding, upon
the reimbursement of the departing Party for the portion of the
entitlement taken over by the existing Parties. If the full entitlement of
the Party stopping its funding is acquired by the other Parties under
this right of first refusal, no excess entitlement will be available to
support the addition of new Parties to the Agreement. If only a portion
of the entitlement made available in this manner is acquired by the
existing Parties, a new Party may be added to the Agreement to hold
the remaining entitlement portion. Any new Party to the Agreement
taking over a portion of the entitlement made available in this manner
shall reimburse the Party that decided to stop funding the Project for
the dollar entitlement received. The new Party shall be expected to
join the PPC as provided in Section 6.
b. If a Party decides to stop funding the Project and some amount of its
entitlement remains after the other Parties are given their first right of
refusal, and no outside parties are interested or approved to join the
Agreement and take over that Party's position, the Party stopping its
funding participation shall not be entitled to any reimbursement of its
remaining entitlement until a new party is added to the Agreement at a
later date or the Project proceeds to the construction phase.
1. If a new party is added to the Agreement at a later date, the
Party stopping its funding participation shall be entitled to
reimbursement for its entitlement or adjusted entitlement,
without interest thereon, by the new party being added.
2. If the Project proceeds to the construction phase, any Party
that stopped its funding participation during an earlier phase
shall be entitled to reimbursement of its entitlement or adjusted
entitlement, without interest thereon, by the Parties
participating in the construction phase.
C. After transfer of any portion of an entitlement to any existing or new
Parties, the remaining costs of the Project moving forward shall be
shared by the Parties based on the adjusted entitlement amount held
by each Party after the transfer has been accounted for.
d. If the Project proceeds to the construction phase, all entitlements or
adjusted entitlements towards the Phase 3 work shall be reflected in
an accounting which will provide the basis to reimburse entities (if they
have ceased participation and have not been reimbursed previously in
full) or credit entities (if they remain in the project) so that the cost of
the Phase 3 work is ultimately charged to those agencies proceeding
with construction in proportion to their construction ownership. For
illustrative purposes only, a description of three possible
reimbursement scenarios is attached hereto as Attachment B.
0
FINAL_ v.8 6-10-08
9 "(off Ramps" from Funding Obligations
"Off Ramps," for purposes of this Agreement, are defined as logical stopping places
where Parties or a Party can elect to stop funding a proportionate share of the Project. At any
particular Off -Ramp, each Party shall be responsible for its equal share of the work up to and
including to that point. in the event a Party elects to stop its funding and ceases to participate
as a member of the PPC, that Party will be responsible for its share of costs up to the point of
withdrawal as a member of the PPC.
9.1 Pre -defined Off -Ramps (1) and (2) and anticipated activities and expenditures in
each fiscal year are shown in the Figure below and discussed more specifically
as:
9.1.1 For FY 08-09, if for any reason the Project is unable to secure the Coastal
Commission Permit, the Project will be halted and discussions will be held
with the Parties on how to proceed. The estimated cost to all Parties
through June 30, 2009, is $945,000.
9.1.2 At about the same time, if the bids or the estimated costs for the next
phase of the work become excessive, as determined by any Party, then
PPC discussions will be held with the Parties on bow to proceed.
9.1.3 For FY 09-10, if the pumping test fails to deliver appropriate quality water
for the pilot program and there is no expectation that additional pumping
will help, or if costs exceed the estimates, discussions will be held with
the Parties on how to proceed. ,The estimated cost to all Parties through
June 30, 2010, is $1,835,000.
7
FINAL v.8 6-10-08
9.2 Withdrawal from the Agreement
. At any of the pre -defined Off -Ramps, any Party may elect to withdraw from the
Project. Upon electing to withdraw, the withdrawing Party will be responsible for funding
its share of the costs incurred before the date of election to withdraw, as determined by
the PPC, plus a reasonable share of costs that become known to the PPC after the date
of e[ection to withdraw but are determined by the PPC to relate to the period before the
date of election to withdraw. In particular, the DVVR Grant requires completion of certain
tasks. and reports at the end of the Project that may result in costs that should be spread
over the entire period of the Project. Similarly, the Project permits will also have a
variety of compliance issues that may result in costs. Upon completion of each aspect of
the work, the PPC will work with DWR and possibly other grantors and regulatory
agencies to determine the terms and conditions, and related costs, for wrapping up the
rema.i�ni'ng work activities. A reasonable share of such costs will be estimated by the
PPC at the time of withdrawal and added to the funding requirements for any Party
withdrawing from the Agreement. A reconciliation of any underpayment or overpayment
may be made by the PPC once actual costs are known.
In addition to the pre -defined off -ramps, any Party can elect to withdraw from the
Agreement at any other time upon the same terms and conditions as described above.
FINAL v.8 6-10-08
At the time any Party withdraws from the Agreement, the remaining costs to
complete the necessary work shall be divided among the remaining Parties by the PPC,
taking into account any transfers of entitlements that have occurred. MWDOC shall
prepare information that details the financial impacts on the Parties remaining. If enough
Parties withdraw from the Agreement to make the financial impacts unacceptable, as
determined by any Party, the PPC shall meet to consider halting the Project. In this
event, the costs to shut down the Project shall be estimated and allocated among all
PPC agencies at the time the decision is made to stop the Project.
10 HOLD HARMLESS AND LIABILITY
Each Party agrees to indemnify, defend at its own expense, including attomeys' fees,
and hold each other Party harmless from and against all claims, costs, penalties, causes of
action, demands, losses and liability of any nature whatsoever, including but not limited to
liability for bodily injury, sickness, disease or death, property damage (including loss of use) or
violation of law, caused by or arising out of or related to any negligent act, error or omission, or
willful misconduct of that indemnifying Party, its officers or employees, or any other agent acting
pursuant to its control in the performance of this Agreement.
11 TERM
The term of this Agreement shall be from the date last signed below to July 31, 2011, or
until completion and payment of all costs of Phase 3 of the Project, whichever occurs later,
unless the Agreement is terminated earlier by the Parties. This Agreement may be modified by
written agreement of the Parties, including modification to extend the term.
12 NOTICE
Any notice, invoice, payment made pursuant to this Agreement shall be sent to the
Parties at their respective addresses shown below.
If to MWDOC: Municipal Water District of Orange County
18700 Ward St.
P.O. Box 20895
Fountain Valley, CA 92728
ATTN: General Manager
If to SCWD: South Coast Water District
31592 West Street
Laguna Beach, CA 92651
ATTN: General Manager
If to MNWD: Moulton Niguel Water District
27500 La Paz Road
P.O. Box 30203
Laguna Niguel, CA 92607-0203
ATTN: General Manager
F
FINAL v,8 6-10-08
If to LBCWD: Laguna Beach County Water District
306 Third Street
P.O. Box 987
Laguna Beach, CA 92652
ATTN: General Manager
If to CSC: City of San Clemente Utilities .Division
100 Avenida Presidio
San Clemente, CA 92672
ATTN: City Manager
If to CSJC: City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
ATTN: City Manager
Parties may change their address for this purpose by giving written notice to the other
Parties as provided herein.
13 AMENDMENTS
The Agreement may be amended by a written amendment as provided herein and
executed by all Parties.
14 ASSIGNMENT
No Party may assign or otherwise transfer any rights, interests or obligations under this
Agreement without the written consent of all Parties.
iN� ►1:x;;3_1 »3IIII I VA
The partial or total invalidity of one or more provisions of this Agreement will not
invalidate the remaining provisions.
16 GOVERNING LAW
This Agreement is a contract governed by the laws of the State of California. The
parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of
California. Venue for any action filed by any Party or Parties related to this Agreement shall be
Orange County, California.
17 TERMINATION OF AGREEMENT
This Agreement may be terminated by a majority of Parties by action of their respective
governing boards or councils. Any individual Party can withdraw from the Agreement at one of
the pre -defined "Off -ramps" or at any other time as previously described herein.
10
FI'N'AL v.8 6-10-08
This Agreemecit and any amendment hereto may be executed in two or more
counterparts, and by each Party on a separate counterpart, each of which, when executed and
delivered, shat be an original and all of which together shall constitute one instrument, with the
same force and effect as though all signatures appeared on a single document.
The individuals executing this Agreement represent and warrant that they have the legal
capacity and authority to do so on behalf of their respective agencies.
IN WITNESS WHEREOF, the PARTIES have executed this Agreement as of the date below.
Date
By
Michael P. Dunbar
General Manager
SCWD
Approved as to Forrn-..-
Date
By:
Betty Burnett
General Counsell
Date
By
Kevin t
General Manager
MWDOC
Approved as to Form:
Date � -- ?'e> -
By:
Daniel J. Payne
General Counsel
11
FINAL v.8 6-10-08
This Agreement and any amendment hereto may be executed in two or more
counterparts, and by each Party on a separate counterpart, each of which, when executed and
delivered, shall be an original and all of which together shall constitute one instrument, with the
same force and effect as though all signatures appeared on a single document.
19 SIGNATURES
The individuals executing this Agreement represent and warrant.that they have the legal
capacity and authority to do so on behalf of their respective agencies.
IN WITNESS WHEREOF, the PARTIES have executed this Agreement as of the date below.
Gate .8Z28 08 � Date
By
Michael P. Dunbar Kevin P. Hunt
General Manager General Manager
SCWD MWDOC
Approved as to Form: Approved as to Form:
Date •fir' '' �' �F>
Date
gy: a By:
Betty Burnett
General Counsel
11
Daniel J. Payne
General Counsel
FINAL v.8 6-10-08
Date
.@ 11 (9�
Date
B�'�"
By
s �� /
By _
Bob Gumerman Renae M. Ninchey
General Manager General Manager
MNWD LBCWD
Approved as to Form, Approved as to Form:
Date .` Date
Y" By:
General Counsel General Counsel
Date Date
By By
Dave Adams George Scarborough
City Manager City Manager
City of San ,duan Capistrano City of San Clemente
Approved as to Form. Approved as to Form:
Date
Date
By: By:
General Counsel General Counsel
12
Date Date
By By
Bot, Gumerman Renae M. Hinchey
General Manager General Manager
MNWD LBCWD
Approved as to Form: Approved as to Form:
Orate Date
By: By:
General Counsel General Counsel
Date '4l Date
By _ e�.;,. _.M, C4� By
Dave Adams George Scarborough
City Manager City Manager
City of San Juan Capistrano City of San Clemente
Approved as to Form:
Date �} C
By )){
' � 6'
General Counsel
Approved as to Form:
Date
By:
General Counsel
12
FINAL. v.8 6-10-08
FINAL v,8 6-10-08
Date Date
B B
Y Y
John F. Foley Renae M. Hinchey
General Manager General Manager 47
MNWD LBCWD
Approved as to Form: Approved as to Form -
Date Date,
By: By: J�
General Counsel General Counsel
Date Date
By By
Dave Adams George Scarborough
City Manager City Manager
City of San Juan Capistrano City of San Clemente
Approved as to Form:
Date
By:
Approved as to Form:
Date
By: _
General Counsel General Counsel
12
Date
By
Bob Gumerrnan
General Manager
MNWD
Approved as to Form:
Date
By:
General Counsel
Date
By
Dave Adams
City Manager
City of San Juan Capistrano
Approved as to Form:
Date
By:
.General Counsel
FINAL v.8 6-10-08
Ew
By
Renae M. Hinchey
General Manager
LBCWD
Approved as to Form:
Date
By: _
General Counsel
Date
By
George 8carborbugh
City Manager
City of Sail Clemente
Approved as to Form:
12
Attachment A
Memorandum of Understanding
Between'Municipal dater District of grange County and
South Coast Water District Regarding the Potential Use of a
Portion of the San Juan Creek Property for Location of an Ocean
Desalination Plant
This Memorandum of Understanding ("MOU") is entered into by and
between the South Coast Water SCWD ("SCWD") and the Municipal Water
District of Orange County ("MWDOC") (collectively "Parties") and is effective the
27th day of April, 20016 ("Effective Date"), as follows:
Whereas, due to projected long-range water supply concerns throughout
the Western United States, which will affect MWDOC and its member agencies,
and due to improvements in local reliability that accrue from development of local
resources, MWDOC has undertaken, in cooperation with Metropolitan Water
District of Southern California ("MET") and others, the study of an ocean
desalination plant ("Project");
Whereas, MWDOC plans to study various potential locations for the
Project, including that portion of SCWD's San Juan Creek Property located to the
south of the existing wastewater lift station, which is approximately 10 acres in
size ("Site");
Whereas, the current concept for the Project envisions that the breadth of
the design would allow desalinated water to be supplied to a number of MWDOC
member agencies in the South Orange County area, including SCWD;
Whereas, the Site is adjacent to San Juan Creek in the City of Dana
Point, California and may be an appropriate location for the Project due to its
proximity to the Pacific Ocean;
Whereas, a portion of the Site is currently the subject of feasibility study
by MWDOC for the Project;
Whereas, SCWD, along with other MWDOC member agencies, would
benefit from the reliability and availability of water from an ocean desalination
source, if the same is developed in Orange County;
Now, therefore, SCWD and MWDOC agree as follows:
Section 1: SCWD is willing for the Site to be considered as a location for
the Project. SCWD has participated in discussions with MWDOC and agrees to
continue its support of MWDOC's study of the Site for feasibility analysis. In its
support of MWDOC's study of the Site, SCWD has incurred and will continue to
incur certain costs and expenses that have resulted in a benefit to MWDOC and
its other member agencies. SCWD has requested, and MWDOC has agreed to
fund, costs incurred by SCWD attendant to MWDOC's feasibility studies of the
Site in the amount of five thousand dollars ($5,000) per year for a period of five
(5) years ("Reserved Period") from the Effective Date hereinabove stated.
Payments shall be due annually on the anniversary of the Effective Date.
Section 2: In consideration of MWDOC's efforts in conducting and funding
a feasibility study of the Site, SCWD agrees to continue its planning efforts for
the San Juan Creek Property and will make available to MWDOC during the
Reserved Period five (5) acres within the Site ("Reserved Area°') fbr location of a
water treatment plant for the Project. The exact location and dimensions of the
Reserved Area to be used for the Project, if any, shall be approved by SCWD
based on other potential uses for the Site.
Section 3: The Parties understand and agree that MWDOC`s interest in
leasing the Reserved Area for the Project is dependent on a number of factors,
including the results of the feasibility study of the Site currently underway. Based
on its goals for the Project and information currently available to MWDOC,
MWDOC represents that it anticipates meeting the following key milestones in
the study and implementation of the Project during the Reserved Period:
Section 4: During the Reserved Period, SCWD and MWDOC shall
meet quarterly and each party shall brief the other on the. planning and
development work each is undertaking for the Project and the remainder of the
Site, as well as any new or proposed development or change in use of areas
around the Site. During the quarterly meetings, MWDOC shall keep SCWD
apprised of the status of the Project, including with respect to -the milestones
listed above. The listed milestones represent estimated dates rather than
obligations, and failure to meet one or more milestones does not result in the
termination of this MOU.
Section 5: MWDOC may terminate this MOU at any time upon 120 -
days written notice to SCWD. Funds due under Section 1, above, shall be paid
on or before the end of the 124 -day notice period and the amount of the payment
small be prorated for the time period covered. In the event SCWD determines, in
2
Key Task
Milestone
1.
Completion of Feasibility Studies and
Publication of Project Report Document
January 2007
2.
Formation of a JPA and Governance Structure
to Move the Project forward
dune 2007
3,
Start Reserved Area Lease Negotiations
July 2007
4.
Completion of Project EIRfEIS
July 2009
5.
Award of DBO Contract
August 2009
6.
Start --up
July 2013
Section 4: During the Reserved Period, SCWD and MWDOC shall
meet quarterly and each party shall brief the other on the. planning and
development work each is undertaking for the Project and the remainder of the
Site, as well as any new or proposed development or change in use of areas
around the Site. During the quarterly meetings, MWDOC shall keep SCWD
apprised of the status of the Project, including with respect to -the milestones
listed above. The listed milestones represent estimated dates rather than
obligations, and failure to meet one or more milestones does not result in the
termination of this MOU.
Section 5: MWDOC may terminate this MOU at any time upon 120 -
days written notice to SCWD. Funds due under Section 1, above, shall be paid
on or before the end of the 124 -day notice period and the amount of the payment
small be prorated for the time period covered. In the event SCWD determines, in
2
its sole discretion, that the Project is not progressing at a rate or in a manner that
indicates adequate progress toward the Milestones referenced above, SCWD
may give MWDOC written notice of its intent to terminate this MOU. Following
such notice, MWDOC may present to SCWD within 96 days (1) a statement of its
continued intent to proceed with development of the Project at the Reserved
Area, (2) a report of the status of the Project and (3) if necessary, revised
Milestones for the Project. SCWD shall consider these materials in good faith,
and both Parties shall meet to discuss termination of the MOU. Following a
deliberation period of at least 30 days following such meeting, SCWD may
terminate this MOU.
Section 6: If MWDOC determines that the Site is feasible and the
Project moves forward, the terms of a lease for the Reserved Area, including the
lease rate, shall be negotiated at a time mutually agreeable to the Parties and
shall form the basis of a separate lease agreement. The Parties acknowledge
that the lease rate will reflect fair market rent as determined at the time of the
lease negotiations. Except as stated, this MOU is not intended to limit or
otherwise restrict either of the Parties with respect to future lease rate
negotiations.
Section 7: During the Reserved Period, SCWD agrees to consider in good
faith MWDOC's determinations as to the feasibility of constructing the Project on
the Site. MWDOC will share with SCWD upon request all results of feasibility
studies, environmental documentation and other information related to the
suitability of the Site for the Project. SCWD further agrees to participate in
meetings and discussions regarding the use of the Site, and to allow for further
studies of the Site that do not interfere with SCWD`s continuing ownership, lease
and/or use of the Site.
Section S: During the Reserved Period and prior to any lease of the
Reserved Area by MWDOC, SCWD may continue to consider all other uses of
the Reserved Area, may continue the current use of the Reserved Area for
leases on a month to month basis, or via leases otherwise consistent with this
MDU, and may make decisions and undertake actions consistent with its rights
and obligations as owner of the Reserved Area and party to this MOU.
Section 9: SCWD shall retain the right to comment on the EIR for the
Project and may participate in the permit process. MWDOC shall allow review of
the screen check EIR by SCWD prior to circulation for public comment, and
MWDOC shall consider in good faith all project mitigation options proposed by
SCWD during the permit process. MWDOC shall consult with SCWD regarding
the exterior design elements and general appearance of the Project, and
MWDOC shall make reasonable efforts to coordinate the exterior design
elements of the Project with other uses and proposed uses of the Site. This
obligation is independent of any aesthetic review conducted during
environmental review or the permitting process for the Project.
3
Section 10: SCWD represents and MWDOC acknowledges that access
to the Site from Pacific Coast Highway and Stonehill Drive, as currently
configured, may not be available for the Project. Additional access to the Site
from Stonehill Drive is currently under construction. Access is dependent on
rights shared with the County of Orange/Orange County Flood Control District,
and SCWD makes no representations or warranties about the continued
availability of particular access routes to MWDOC or any other party. As
SCWD's lessee, MWDOC's access to the Site will be derivative of SCWD's
access rights over the levee road connected to Stonehill Drive through the City of
San Juan. MWDOC understands that obligations attendant to the use of the
levee access road through the City of San ,Tuan may apply to the Project and are
the responsibility of MWDOC.
Section 11: During the Reserved Period, if SCWD considers any
commitment to lease the Reserved Area to any third party for a time period one
(1) year or greater, SCWD will give written notice to MWDOC of the proposed
lease and all material terms at least thirty (30) days before presentation of such
lease to SCWD's Board for final approval. Except as stated in Section- 12,
SCWD agrees not to lease the Reserved Area for uses that would permanently
impair the ability of MWDOC to use the Reserved Area for the Project.
Section 12: if SCWD considers any offer of purchase for the Site or the
Reserved Area made by any third party, or any commitment to lease the
Reserved Area to any third party for a term of 4 years or greater, SCWD will give
written notice to MWDOC of the proposed offer and all material terms at least
one hundred twenty (120) days before presentation of such purchase/sale
agreement or lease to SCWD's Board for final approval.
Section 13: The referenced time periods for advance notice to MWDOC
are provided to allow MWDOC time to consider making a competing offer to
SCWD. SCWD,shall consider any competing offer by MWDOC in good faith.
Section 14: During the Reserved Period, MWDOC shall have the right to
enter the Site to conduct tours, surveys, geotechnical investigations, and
environmental work necessary for the study of the feasibility, permitting and
environmental compliance attendant to the Project. MWDOC agrees to provide
SCWD with verbal or written notice at least 48 hours before access is required.
Such access shall not be unreasonably withheld.
Section 15: MWDOC represents, and SCWD acknowledges, that the
likely method for further development and construction of the Project will be the
creation of a Joint Powers Authority ("JPA") comprised of agencies with interests
in and commitments to the Project. MWDOC may freely assign its rights and
obligations under this MOU to such a .TPA.
W.
Section 16: The terms and conditions of this MOU may be modified by
mutual written agreement of the parties.
Section 17: This MOU shall remain in effect during the 5 -year Reserved
Period terminating on April 27 2011, unless otherwise terminated at an earlier
date as provided herein.
As agreed to by the undersigned, duly authorized to execute this MOU:
Date .lune 1, 2006•.
By
Michael P. Dunbar
General Manager
SCWD
Date June 1, 2006
By:-�.-
Betty Burnett
District Counsel
5
Date )L/"�L�Z
�G f
j
By
Kevin Hunt
General Manager
MWDOC
Date
By: --
Daniel J. Payn
General Counsel
Attachment B
Examples of Cost Sharing in the Project Under Various Scenarios
ALL COSTS IN $1,000'S
Example 1: Five Agencies Participate Through 2011
2007 & 2008
2009
2010
2011 Total
Total Cost $225
$720
$890
$1,465 $3,300
No, of Agencies 5
5
5
5
Cost Per Agency $45
$144
$178
$293 $660
Conclusion: All agencies contribute the same $660k.
Example 2: Five Agencies Participate Through 2009, With Four Thereafter
2007 & 2008
2009
2010
2011 Total
Total Cost $225
$720
$890
$1,4615 $3,300
No. of Agencies 5
5
4
4
Cost Per Agency $45
$144
$223
$366 $778
Entitlements
Total
Conclusion: One agency contributed:
$189
$189
Four agencies contributed:
$778
$3,111
Total =
$3,300
In 2010, the four agencies remaining in the project would have to get a budget increase From $660k
to $778k to continue.
If the project goes to construction, each agency would be credited the entitlement amounts shown
above.
The $3.3 million would be charged to the agencies proceeding with construction
based on their capacity in the project.
If the project does not go to construction, no money changes hands.
Example 3: Five Agencies Start the Project, But One Agency Crops after 2009
2007 & 2008
2009
2010
2011
Total Cost $225
$720
$200
$0
No. of Agencies 5
5
5
5
Cost Per Agency $45
$144
$40
$0
Conclusion: One agency wants to stop at the end of 2009.
Other agencies consider the increase in costs and decide to stop the project as well.
The project stops at the end of 2009, but requires,costs in 2010 to wind things up.
The cost to wind things up in 2010 is $20010.
Each agency pays the same amount of $229k and the project does not go into construction.
1
Total
$1,145
$229
TO: Dave Adams, City Manager 1�'Iw
FROM: John G. O'Donnell, Utility Director
815/2008
SUBJECT: Consideration of the Final Conformed Agency Participation Agreement to
Explore the Feasibility of an Ocean Desalinization Plant - Municipal Water
District of Orange County (MWDOC); South Coast Water District (SCWD);
Laguna Beach County Water District (LBCWD), Moulton Niguel Water
District (MNWD); and the City of San Clemente (CSC), and Appropriation
of Funds
RECOMMENDATION:
By motion,
Approve the Final Conformed Agency Participation Agreement with MWDOC,
SCWD, LBCWD, MNWD, and CSC in the exploration of the feasibility, cost,
benefits, and need for the development of domestic water supply from an ocean
water desalinization plant;
2. Return $40,000 of the $236,000 allocated from the Capital Reserve Fund for this
project on May 6, 2008 to the Capital Reserve Fund; and,
3. Authorize the City Manager to execute the final version of the agreement
substantially in conformance with the attached version.
SITUATION:
The City Council approved the Agency Participation Agreement (version 4) with
MWDOC, SCWD, LBCWD, and MNWD in the exploration of the feasibility, cost,
benefits, and need for the development of domestic water supply from an ocean water
desalinization plant at its meeting of May 6, 2008. Since version 4 was approved by the
Council it has undergone several changes and is now finalized as version 8. Notable
changes are: 1) The addition of the City of San Clemente, which will lower the phase III
participations costs from $236,000 by $46,000 to $190,000; 2) The removal of
language allowing the sale of a party's interest to a private party. Although the
language remaining does not explicitly exclude it, the ability of the remaining
participants to block such a sale may remove this as an option. This change occurred
primarily because of concerns by the legal counsel for the project that the abilities to sell
bonds and to form joint powers authority may be negatively impacted; and 3) A change
in the sharing of the project operational cost from combined. capital plus operations cost
D15
SUBJECT: Consideration of the Final Conformed Agency Participation Agreement to
Explore the Feasibility of an Ocean Desalinization Plant - Municipal Water
District of Orange County (MWDOC); South Coast Water District (SCWD);
Laguna Beach County Water District (LBCWD), Moulton Niguel Water
District (MNWD); and the City of San Clemente (CSC), and Appropriation
of Funds
RECOMMENDATION:
By motion,
Approve the Final Conformed Agency Participation Agreement with MWDOC,
SCWD, LBCWD, MNWD, and CSC in the exploration of the feasibility, cost,
benefits, and need for the development of domestic water supply from an ocean
water desalinization plant;
2. Return $40,000 of the $236,000 allocated from the Capital Reserve Fund for this
project on May 6, 2008 to the Capital Reserve Fund; and,
3. Authorize the City Manager to execute the final version of the agreement
substantially in conformance with the attached version.
SITUATION:
The City Council approved the Agency Participation Agreement (version 4) with
MWDOC, SCWD, LBCWD, and MNWD in the exploration of the feasibility, cost,
benefits, and need for the development of domestic water supply from an ocean water
desalinization plant at its meeting of May 6, 2008. Since version 4 was approved by the
Council it has undergone several changes and is now finalized as version 8. Notable
changes are: 1) The addition of the City of San Clemente, which will lower the phase III
participations costs from $236,000 by $46,000 to $190,000; 2) The removal of
language allowing the sale of a party's interest to a private party. Although the
language remaining does not explicitly exclude it, the ability of the remaining
participants to block such a sale may remove this as an option. This change occurred
primarily because of concerns by the legal counsel for the project that the abilities to sell
bonds and to form joint powers authority may be negatively impacted; and 3) A change
in the sharing of the project operational cost from combined. capital plus operations cost
Agenda Report August 5, 2008
Paqe 2
to a straight take -and -pay agreement. The most economical way to run the plant is as a
baseline plant in a take -and -pay arrangement. This will serve to lower the per acre-foot
cost of water and conform the operation of the plant to a logical method. Version 8 is
included as Attachment 1.
BACKGROUND:
Recent events have brought into question the guarantee of water from Metropolitan
Water District of Southern California (MET.) These events include the recent 4.4
Colorado River Compact, State Water Project delivery cutbacks due to issues with the
Bay Delta Smelt, and predictions of a long term drought for the South West as a whole.
San Juan Capistrano's Domestic Water Master Plan (DWMP) depends on the pipeline
capacity it has from MET's Diemer Filtration Plant as if it were a guarantee of
uninterrupted water supply. MET has and will continue to make every effort to meet the
water demands of its customers. If MET cannot obtain water it will have to fairly
allocate to its customer base what it can obtain, treat, and deliver. If MET reduces its
allocation, the City would need to develop other sources or do without. The City has not
identified ocean water desalination in its Domestic Water Master Plan (DWMP) as part
of a plan to ensure water supply reliability, but should now, given the conditions and
some of the predictions, consider alternative sources of water to make up for the
shortfalls of MET water.
MWDOC has carried the development of the Ocean Desalination Project (ODP) for
several years as a participant in MET's Seawater Desalination Program. To this end
MWDOC has completed and funded a considerable portion of the pre -development
work and has identified the ODP as a viable project. The work completed thus far
includes: 1) An initial Feasibility study; 2) Full scale testing of a key technology, the
slant well drilling process; 3) Garnering the support of key environmental groups, the
State Parks, the State Lands Commission, the Coastal Commission, etc.; 4) Securing a
MET grant of $250 per acre foot of developed water over 25 -year period on a sliding
scale; 5) Laying the ground work for the pursuit of additional Federal, State, and MET
Grants to bring the projected cost of ODP water in line with MET import water; and, 6)
Entering into an Agreement with the California Department of Water Resources (DWR)
to receive $1.5 million toward the cost of the next phase in developing the ODP. (This
is in addition to the previously received grants from the USEPA, USBR, and DWR
totaling $1.5 million.)
To further explore the technical feasibility, determine the performance, and define the
costs of the ODP, interested agencies are entering into an Agency Participation
Agreement (APA) (Attachment 1.) The fundamental purpose of the APA is to establish
the rights and responsibilities of the participants and conduct the consultation,
evaluation, negotiation, and technical investigation to provide sufficient information for
the development and definition of a project that will lead to a Joint Participation
Agreement (JPA). The JPA will be different in that it will assign capacity rights in the
ODP and divide the costs, voting rights, and allocations according to that capacity of the
project — the take -and -pay arrangement. Both the APA and the JPA achieve economies
of scale not available were each agency to pursue its capacity interest on its own. The
Agenda Report August 5, 2008
Page 3
APA is also a low cost, lower risk means of project participation to advance the project
investigation and development.
The APA currently allows each participant an equal share in voting rights and requires
each participant to pay an equal share of the project costs to date. It also sets a frame
work for the: 1) Disengagement (the off ramp) should one or all APA participants
determine that the costs exceed the benefits; 2) Work and goals of the current phase; 3)
Governance; 4) Rules of Amendment; 5) Rights and Obligations. Undefined, and
intentionally left out are Capacity Rights in the ODP.
Participation in the APA requires that each agency send one member of its governing
board (in the Case of San Juan Capistrano, a City Council Member) and one staff
member to provide direction as needed on an ongoing basis to the "Project Participation
Committee" (PPC.) Decisions related to continued participation in the Agreement and
approval of any amendments to the Agreement shall be made by the Parties' governing
boards. All Parties shall share equality in the cost of each item of work. For purposes
of voting on an item under consideration by the PPC, each Party shall have one vote.
Items presented to the PPC for consideration that are related to the ongoing
implementation of the APA and its approved goals and objectives, shall be decided
during meetings of the PPC by a super majority vote (two thirds) of the Parties.
Also included in the APA are off ramps — points at which more reliable information,
permits, or funding will have been developed to allow each agency to consider
continued participation or disengagement.
FINANCIAL CONSIDERATIONS:
The total future cost of the ODP is currently projected at $136 million for 15 million
gallons per day of domestic water capacity. The projected cost of the product water is
$1,287 per acre foot (AF.) Even with the currently secured MET subsidy of $250 per AF
ODP water still costs more than the imported water at $528.50 per AF; and 603.50 per
AF starting January 1, 2009. Currently MWDOC is in discussions with MET to'get in
addition to the $250 per AF subsidy, full participation by MET, with MET agreeing to sell
product water to the project participants at the MET rate. This would improve the
economics of this project.
Currently costs are limited to the costs of exploration and evaluation. The total cost of
this work is $4.8 million, minus a grant of $1.5 million, for a shared cost of $3.3 million to
be divided equally amongst the project participants. Cost of participation in the ODP is
best defined according to the participant matrix and off ramp consideration shown
below. Currently there are 4 project participants, so the City would be the fifth
participant. At this point, no other potential participants have come forward with an
expression of interest. With the closing of the open entry at this point no other
participants will be allowed with out the unanimous approval of the parties involved.
The City's participation costs would be $190,000 for participation up to off ramp 1, an
additional $178,000 for continued participation up to off ramp 2, and an additional cost
of $292,000 for participation up to off ramp 3. At this point, the City is effectively being
Agenda Report August 5, 2008
Page 4
asked to commit to participation up to off ramp 1; which will cost $190,000 rather than
the $236,000 allocated on May 5, 2008. This will lower the project cost by $46,000.
$6,000 has been retained cover the cost of staff time and other expenses incurred by
San Juan for the project. It should be noted that if the City chooses to disengage before
the achievement of the goals established for off ramp 1 that it may incur costs for work
already committed; but not more that the off ramp 1 level.
There is no guarantee that the City can recover its sunk costs should it disengage and
another agency effectively take its place. The APA has language to allow the City to
sell its interest to another public water agency, if the existing participants do not
exercise a first right of refusal to buy out the City.
WATER ADVISORY COMMISSION COMMENTS:
Version 4 of this agreement was presented to the Water Advisory Commission at its
meeting of March 25, 2008 and version 8 brought back for further consideration on its
meeting of April 22, 2008. At its March meeting the Commission had several comments
regarding the structure of the draft agreement as presented. These comments were
that: 1) The City should maintain the right to sell its position in the event it disengages at
one of the off ramps, and can find a willing and acceptable buyer; 2) That clarifying
language be added to the off ramp provisions to allow departure prior to the pre -defined
off ramps; 3) Clarify in the APA, the type of management and governing arrangement
that will own and operate the ODP; and 4) Have conducted an evaluation of the
relevance of this project to the City's overall water needs, to further consider the value
of participation in light of the impacts of recycled water occurring or not occurring,
expanding the GWRP, potential import restrictions, and enhanced conservation efforts.
At a meeting held with the project participants on April 17, 2008, to discuss the changes
to the APA proposed by the Commission, the requested modifications were agreed
upon to: 1) Allow exiting participants to sell their interest to another public water
agency, after the existing participants are allowed to exercise a first right of refusal; 2)
Allow exit at any point after meeting previous obligations; and, 3) Reflect the intent of
Agenda Report
Paae 5
August 5, 2008
the project's participants to form a joint powers authority (JPA) or at least structure the
organization in the manner of a JPA.
These changes were presented to the Commission at its meeting of April 22, 2008, at
which the Commission reiterated its desire that the APA allow a departing participant to
sell its interest to any buyer, public or private. At this point in time, the. project
participants have rejected the concept of sale of interest to a private party. The
Commission recommended the APA to the City Council by a vote of 4-0; with
reservation regarding the ability to sell the City's interest to a private party.
NOTIFICATION:
South Coast Water District
Moulton Niguel Water District
Laguna Beach County Water District
Municipal Water District of Orange County
City of San Clemente
RECOMMENDATION:
By motion,
1. Approve the Final Conformed Agency Participation Agreement with MWDOC,
SCWD, LBCWD, MNWD, and CSC in the exploration of the feasibility, cost,
benefits, and need for the development of domestic water supply from an ocean
water desalinization plant;
2. Return $40,000 of the $236,000 allocated from the Capital Reserve Fund for this
project on May 6, 2008 to the Capital Reserve Fund; and,
3. Authorize the City Manager to execute the final version of the agreement
substantially in conformance with the attached version.
Respectfully submitted,
i2n G. O'Donnell,
Utility Director
Prepared by,
Eric Bauman, PE,
Water Engineering Manager
Attachments: 1. Draft Agency Participation Agreement, version 8.
v.816-10-08
Agency Participation Agreement for
Phase 3 -- Extended Pumping and Pilot Plant Testing
Dana Point Ocean Water Desalination Project
This agreement (Agreement) between the Municipal Water District of Orange County
(MWDOC), South Coast Water District (SCWD), Laguna Beach County Water District, Moulton
Niguel Water District, the City of San Clemente (CSC) and the City of San Juan Capistrano
(CSJC) (Parties, or individually, Party), establishes a framework for cooperation with regard to
the next stage, referred to herein as "Phase 3," in the Dana Point Ocean Water Desalination
Project (Project), which consists primarily of work related to extended pumping and pilot plant
testing.
RECITALS:
A. The Parties are water agencies operating within Orange County, California, and all share
a responsibility for ensuring a reliable water supply for the area they serve. Each Party,
through its forming legislation, has the authority to develop water supply sources and
work for the development of such sources (see, for example, Water Code Section 31020
et seq.). Under Government Code Section 6502, the Parties may work cooperatively for
the development of a project benefiting a common purpose.
B. Each Party has independently identified ocean water desalination as part of its plan to
ensure water supply reliability.
C. A site owned by SCWD adjacent to San Juan Creek in the City of Dana Point, California
(Site) has been identified by MWDOC as an appropriate location for the Project due to
its proximity to the Pacific Ocean, and MWDOC and SCWD have entered into a
Memorandum of Understanding dated April 27, 2006, attached hereto as Attachment A
and incorporated herein by this reference, establishing access and other rights to the
Site for purposes of continuing a feasibility study.
D. MWDOC has pursued development of the Project for several years as a participant in
Metropolitan Water District of Southern California's (Metropolitan) Seawater Desalination
Program to preserve the option to receive incentive funding of up to $250 per acre foot
once the ocean desalination plant begins to produce water. MWDOC has also entered
into an agreement with the California Department of Water Resources (DWR) to receive
$1.5 million toward the cost of developing a pilot plant as part of the Phase 3 work
activities. MWDOC is working to obtain additional state, federal and Metropolitan
funding for Phase 3 work activities as well as for construction of the full-scale plant.
E. Preliminary feasibility studies for the Project at the Site have been completed, and the
Parties now wish to move on to Phase 3 of the investigation, which will involve extended
pumping of the slant well previously constructed (Test Slant Well) and development of a
Pilot Plant to test treatment processes, as described in Section 1.2 of this Agreement. If
the Phase 3 feasibility work is successful in demonstrating that the Project can be
implemented in a cost-effective manner, the Parties intend to move forward with
implementation of the Project via a formal Joint Powers Agreement in which each
implementing party will have a specific agreed-upon Project capacity. The Parties intend
that under a Joint Powers Agreement, each agency will pay its proportionate share of
ATTACHMENT 1
v.8 16-10-08
project capital, operations and maintenance costs, and that contributions for such costs
will be based on project capacity ownership, irrespective of whether water was received
from the plant or another source.
THEREFORE, the Parties agree as follows:
1. Introduction
The Parties' purpose in entering into this Agency Participation Agreement for Phase 3 —
Extended Pumping and Pilot Plant Testing ("Agreement") is to establish procedures and a
framework that will facilitate collective decisions involving cost sharing and other issues related
to the activities required for the next stage of the Project, which will consist mainly of extended
pumping of the Test Slant Well and pilot plant testing. Extended pumping of the Test Slant Well
is necessary to (1) pull in ocean water to test water quality and conduct pilot plant process
treatment evaluation studies, (2) determine the effectiveness of the slant well to provide
pretreatment, (3) validate the groundwater model for full scale feedwater capacity, (4) determine
the impacts on operation of existing groundwater facilities and the lower San Juan Basin as a
whole, and (5) update and refine the engineering cost estimate for the Project. MWDOC will
provide staff support to facilitate execution of the work, and all Parties will share the cost of the
work as provided herein.
1.1 Estimated Phase 3 Costs to be Shared
Total cost for this Phase 3 work is estimated at $4,800,000. To date, $1,500,000 in
Proposition 50 grant funds have been secured by MWDOC from DWR (DWR Grant). The net
cost to the Parties is thus estimated to be approximately $3,300,000, which will be divided
among the Parties as provided herein. Efforts to secure funds from other sources will continue
by MWDOC with support of the other parties, and additional funding available for the Project
could reduce the share of costs owed.
1.2 Phase 3 Work
Phase 3 work activities for the Project are anticipated to include, in general terms, the
following:
• Preparation of the engineering services request for proposals for the Project
• Development of a Pilot Plant test plan
• Completion of CEQA and NEPA environmental documentation for the test plan
• Permitting for the test plan
• Negotiation of mitigation fees with State Parks for use of the Doheny State Beach
• Design and procurement as needed for the pumping and pilot plant facilities
• Installation of the test facilities
• Conduct extended pumping test and water quality sampling
• Installation and pilot plant process testing
• Completion of hydrogeology and groundwater modeling update
• Assessment of Project impacts on the lower San Juan Basin
• Preparation of draft and final reports
• Periodic service and download data from the two monitoring wells
Begin work on determining the terms and conditions for the following items. (1) obtaining
capacity in the San Juan Creek Ocean Outfall and (2) securing a land lease for the
Project site from SCWD. This work will include, at a minimum, development of rough
cost estimates for each item and development of a cost proposal and schedule for
completing the work on both items. More advanced work on these items will not be
initiated until a budget is approved by the governing boards or councils or the PPC, as
required.
2 Project Participation Committee
2.1 Direction needed on an ongoing basis and related to the progress of the work
shall be provided by a "Project Participation Committee" (PPC). The PPC will be
comprised of one staff member and one governing board member or city council
member from each of the Parties, including MWDOC, as designated by their
respective governing boards or city councils. For purposes of voting on an item
within the limited powers of the PPC, as established herein, each Party shall
have one vote except MWDOC, which shall be a non-voting member of the PPC.
MWDOC may otherwise fully participate in all PPC meetings.
2.2 Decisions related to initial participation in the Agreement and any amendment to
the Agreement, including but not limited to amendments to add Parties to the
Agreement and amendments related to funding or cost sharing, shall be made by
the Parties' governing boards or city councils. In the interest of efficiency and
economy, other decisions related to the ongoing implementation of Phase 3 that
will not amend the terms of the Agreement shall be subject only to PPC approval
by at least a 213 vote of all Parties.
2.3 All Parties except MWDOC shall share in the cost of each item of work approved
by the Parties up to the actual total amount expended and shared between the
Parties to a total of $3.3 million (the "Agreement Estimated Cost"). Expenditures
that would bring the total shared expenditures above the Agreement Estimated
Cost shall be subject to review and approval of the governing body of each Party
and must be approved as an amendment to this Agreement prior to expenditure.
3 SCWD's Obligations
SCWD's obligations include, without limitation, the following:
3.1 SCWD owns the Site and shall in that capacity interface with the State Park at
Doheny and other local interests or agencies that have questions or concerns
about the Project.
3.2 SCWD will provide funds to pay for its portion of shared costs consistent with this
Agreement, as directed by the PPC.
3.3 SCWD is hereby designated as the local agency primarily responsible for the
Project. In this capacity, SCWD's PPC Committee member shall preside over
meetings of the PPC.
3.4 SCWD shall work closely with MWDOC as needed and will be responsible for
providing information about the PPC to the other local agencies.
3.5 SCWD shall cooperate with MWDOC in seeking outside funding for the work
activities.
3
v.816-1 0-08
3.6 In entering contracts on behalf of the PPC, SCWD shall require contractors and
consultants to name the individual agency members of the PPC as additional
insureds for coverage related to the Project.
4 MWDOC's Obligations
MWDOC's obligations include, without limitation, the following:
4.1 Provide staff time to outline and manage the work activities. This includes
working with the various consultants authorized by the PPC to complete the
Project tasks.
4.2 Serve as the lead agency for CEQA compliance
4.3 Coordinate with appropriate federal agencies, as needed, for NEPA compliance
4.4 Acquire all necessary permits, in its name
4.5 Evaluate alternatives and make recommendations to the PPC
4.6 Facilitate formation of a technical advisory panel for the Project, if and when PPC
deems one necessary
4.7 Work with the various Parties to ensure they have all available information
4.8 Work with Metropolitan to bring its resources and expertise into the Project
4.9 Work to secure outside funding from State and Federal agencies, Metropolitan
and other sources as appropriate and use these funds to reduce the costs to the
Parties
4.10 MWDOC shall be responsible for providing accountings for the costs of all work
completed and shall be responsible for invoicing and collecting deposits from
each participating agency to cover the estimated costs on a periodic basis.
4.11 Administer grants, including the DWR Grant.
4.12 Utilize grant and other funding, if the same becomes available and applicable, to
reimburse the Parries or reduce future participation costs.
4.13 In entering contracts on behalf of the PPC, MWDOC shall require contractors
and consultants to name the individual agency members of the PPC as additional
insureds for coverage related to the Project.
5 Other Local Agency Obligations
Obligations of the other Parties shall include, without limitation, the following:
5.1 Provide funds to pay for its portion of shared costs consistent with this
Agreement, as directed by the PPC.
5.2 Attend and participate in PPC meetings.
5.3 Provide assistance and support to MWDOC in seeking outside funding for the
work activities.
6 Amendment to Add Parties
After execution of this Agreement, other public water entities may be added as Parties to
the Agreement and participate in the PPC only upon a written amendment to the Agreement
approved unanimously by all Parties. The PPC shall propose for each such amendment the
terms and conditions for adding a particular agency to the Agreement and the written
amendment shall be prepared accordingly by MWDOC. These terms and conditions will include
151
v.8/6-10-08
a determination by the PPC, pursuant to the provisions of Section 8 of this Agreement, of an
appropriate payment amount for a share of past costs.
7 Time Is of the Essence
Time is of the essence in the performance of all obligations under this
Agreement. The schedule presented by MWDOC requires that the California Coastal
Commission (CCC) Coastal Development Permit (CDP) be approved on or before the
December 2008 meeting of the CCC to allow the work to proceed on the beach in 2009. Before
the CDP application can be deemed complete and eligible for consideration by the CCC, other
permits must first be acquired. These include permits from State Parks, Regional Water Quality
Control Board, State Lands Commission Lease and jurisdiction determinations and
consultations with US Corps of Engineers, Fish & Wildlife Service, National Marine Fisheries,
and California Department of Fish & Game. The Parties shall make every effort to avoid any
and all delay in the submittal or processing of the applications for these permits. The
anticipated Major Activities Schedule is provided in the table below:
ASM
2007-08' '
2006-09.:: `
200910
2010•11
'JAI A4
Js ora J -PA : AJ
3-8 04.3 JW A4
dS 04 I -M . AJ
Major Activity .
Project Committee Organization
Environmental Documentation
Permits and Approvals
Design/Procurement of Test Facilities
Installation of Test Faciliites
Extended Pulping & Water Quality
Plant Process Testing
Hydrogeology & Groundwater Modeling
■
■
Draft and Final Reports
ftev Fab 34, 2WB
8 Cost Sharinq
All Parties except MWDOC (MWDOC is not a local funding partner) shall share equally
in the cost of the Phase 3 work moving forward, irrespective of how they voted when the matter
came before the PPC for approval. MWDOC shall administer the DWR Grant funding of
$1,500,000.00 for the Project in accordance with the grant terms. A proportionate division of
costs shall be calculated by the PPC and invoiced to the Parties by MWDOC. Payment of costs
for Phase 3 work shall result in a dollar "entitlement" for each contributing Party or an "adjusted
entitlement" (if changes are made as outlined below). The "entitlement" or "adjusted
entitlement" amount shall be used at certain times as outlined below to reimburse Parties who
may be ceasing their participation or if the project proceeds to the construction phase:
1*1
v.8 16-10-08
a. If a Party decides to stop funding the Project as provided herein, and if
another public water entity expresses an interest in joining the
Agreement, all of the existing Parties shall have a first right of refusal
to take over a portion of the entitlement (in accordance with their
proportion of all entitlements interested in receiving a portion of the
entitlement being given up) of the Party that stopped its funding, upon
the reimbursement of the departing Party for the portion of the
entitlement taken over by the existing Parties. If the full entitlement of
the Party stopping its funding is acquired by the other Parties under
this right of first refusal, no excess entitlement will be available to
support the addition of new Parties to the Agreement. If only a portion
of the entitlement made available in this manner is acquired by the
existing Parties, a new Party may be added to the Agreement to hold
the remaining entitlement portion. Any new Party to the Agreement
taking over a portion of the entitlement made available in this manner
shall reimburse the Party that decided to stop funding the Project for
the dollar entitlement received. The new Party shall be expected to
join the PPC as provided in Section 6.
b. If a Party decides to stop funding the Project and some amount of its
entitlement remains after the other Parties are given their first right of
refusal, and no outside parties are interested or approved to join the
Agreement and take over that Party's position, the Party stopping its
funding participation shall not be entitled to any reimbursement of its
remaining entitlement until a new party is added to the Agreement at a
later date or the Project proceeds to the construction phase.
I . If a new party is added to the Agreement at a later date, the
Party stopping its funding participation shall be entitled to
reimbursement for its entitlement or adjusted entitlement,
without interest thereon, by the new party being added.
2. If the Project proceeds to the construction phase, any Party
that stopped its funding participation during an earlier phase
shall be entitled to reimbursement of its entitlement or adjusted
entitlement, without interest thereon, by the Parties
participating in the construction phase.
C. After transfer of any portion of an entitlement to any existing or new
Parties, the remaining costs of the Project moving forward shall be
shared by the Parties based on the adjusted entitlement amount held
by each Party after the transfer has been accounted for.
d. if the Project proceeds to the construction phase, all entitlements or
adjusted entitlements towards the Phase 3 work shall be reflected in
an accounting which will provide the basis to reimburse entities (if they
have ceased participation and have not been reimbursed previously in
full) or credit entities (if they remain in the project) so that the cost of
the Phase 3 work is ultimately charged to those agencies proceeding
with construction in proportion to their construction ownership. For
illustrative purposes only, a description of three possible
reimbursement scenarios is attached hereto as Attachment B.
9
v.8 / 6-10-08
9 "Off Ramps" from Funding Obligations
"Off Ramps," for purposes of this Agreement, are defined as logical stopping places
where Parties or a Party can elect to stop funding a proportionate share of the Project. At any
particular Off -Ramp, each Party shall be responsible for its equal share of the work up to and
including to that point. In the event a Party elects to stop its funding and ceases to participate
as a member of the PPC, that Party will be responsible for its share of costs up to the point of
withdrawal as a member of the PPC.
9.1 Pre -defined Off -Ramps (1) and (2) and anticipated activities and expenditures in
each fiscal year are shown in the Figure below and discussed more specifically
as:
9.1.1 For FY 08-09, if for any reason the Project is unable to secure the Coastal
Commission Permit, the Project will be halted and discussions will be held
with the Parties on how to proceed. The estimated cost to all Parties
through June 30, 2009, is $945,000.
9.1.2 At about the same time, if the bids or the estimated costs for the next
phase of the work become excessive, as determined by any Party, then
PPC discussions will be held with the Parties on how to proceed.
9.1.3 For FY 09-10, if the pumping test fails to deliver appropriate quality water
for the pilot program and there is no expectation that additional pumping
will help, or if costs exceed the estimates, discussions will be held with
the Parties on how to proceed. The estimated cost to all Parties through
June 30, 2010, is $1,835,000.
7
v.S / 6-10-08
9.2 Withdrawal from the Agreement
At any of the pre -defined Off -Ramps, any Party may elect to withdraw from the
Project. Upon electing to withdraw, the withdrawing Party will be responsible for funding
its share of the costs incurred before the date of election to withdraw, as determined by
the PPC, plus a reasonable share of costs that become known to the PPC after the date
of election to withdraw but are determined by the PPC to relate to the period before the
date of election to withdraw. In particular, the DWR Grant requires completion of certain
tasks and reports at the end of the Project that may result in costs that should be spread
over the entire period of the Project. Similarly, the Project permits will also have a
variety of compliance issues that may result in costs. Upon completion of each aspect of
the work, the PPC will work with DWR and possibly other grantors and regulatory
agencies to determine the terms and conditions, and related costs, for wrapping up the
remaining work activities. A reasonable share of such costs will be estimated by the
PPC at the time of withdrawal and added to the funding requirements for any Party
withdrawing from the Agreement. A reconciliation of any underpayment or overpayment
may be made by the PPC once actual costs are known.
In addition to the pre -defined off -ramps, any Party can elect to withdraw from the
Agreement at any other time upon the same terms and conditions as described above.
M
v.8/6-10-08
At the time any Party withdraws from the Agreement, the remaining costs to
complete the necessary work shall be divided among the remaining Parties by the PPC,
taking into account any transfers of entitlements that have occurred. MWDOC shall
prepare information that details the financial impacts on the Parties remaining. If enough
Parties withdraw from the Agreement to make the financial impacts unacceptable, as
determined by any Party, the PPC shall meet to consider halting the Project. In this
event, the costs to shut down the Project shall be estimated and allocated among all
PPC agencies at the time the decision is made to stop the Project.
10. HOLD HARMLESS AND LIABILITY
Each Party agrees to indemnify, defend at its own expense, including attorneys' fees,
and hold each other Party harmless from and against all claims, costs, penalties, causes of
action, demands, losses and liability of any nature whatsoever, including but not limited to
liability for bodily injury, sickness, disease or death, property damage (including loss of use) or
violation of law, caused by or arising out of or related to any negligent act, error or omission, or
willful misconduct of that indemnifying Party, its officers or employees, or any other agent acting
pursuant to its control in the performance of this Agreement.
illiiii�7►�
The term of this Agreement shall be from the date last signed below to July 31, 2011, or
until completion and payment of all costs of Phase 3 of the Project, whichever occurs later,
unless the Agreement is terminated earlier by the Parties. This Agreement may be modified by
written agreement of the Parties, including modification to extend the term.
E
v.816-10-08
12 NOTICE
Any notice, invoice, payment made pursuant to this Agreement shall be sent to the
Parties at their respective addresses shown below.
If to MWDOC: Municipal Water District of Orange County
18700 Ward St.
P.O. Box 20895
Fountain Valley, CA 92728
ATTN: General Manager
If to SCWD: South Coast Water District
31592 West Street
Laguna Beach, CA 92651
ATTN: General Manager
If to MNWD: Moulton Niguel Water District
27500 La Paz Road
P.O. Box .30203
Laguna Niguel, CA 92607-0203
ATTN: General Manager
If to LBCWD: Laguna Beach County Water District
306 Third Street
P.O. Box 987
Laguna Beach, CA 92652
ATTN: General Manager
If to CSC: City of San Clemente Utilities Division
100 Avenida Presidio
San Clemente, CA 92672
ATTN: City Manager
If to CSJC: City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
ATTN: City Manager
Parties may change their address for this purpose by giving written notice to the other
Parties as provided herein.
13 AMENDMENTS
The Agreement may be amended by a written amendment as provided herein and
executed by all Parties.
10
v.8 / 6-10-08
14 ASSIGNMENT
No Party may assign or otherwise transfer any rights, interests or obligations under this
Agreement without the written consent of all Parties.
16 SEVERABILITY
The partial or total invalidity of one or more provisions of this Agreement will not
invalidate the remaining provisions.
16 GOVERNING LAW
This Agreement is a contract governed by the laws of the State of California. The
parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of
California. Venue for any action filed by any Party or Parties related to this Agreement shall be
Orange County, California.
17 TERMINATION OF AGREEMENT
This Agreement may be terminated by a majority of Parties by action of their respective
governing boards or councils. Any individual Party can withdraw from the Agreement at one of
the pre -defined "Off -ramps" or at any other time as previously described herein.
18 - COUNTERPARTS
This Agreement and any amendment hereto may be executed in two or more
counterparts, and by each Party on a separate counterpart, each of which, when executed and
delivered, shall be an original and all of which together shall constitute one instrument, with the
same force and effect as though all signatures appeared on a single document.
19 SIGNATURES
The individuals executing this Agreement represent and warrant that they have the legal
capacity and authority to do so on behalf of their respective agencies.
IN WITNESS WHEREOF, the PARTIES have executed this Agreement as of the date below.
Date Date
By
Michael P. Dunbar
General Manager
SCW D
By
Kevin P. Hunt
General Manager
MWDOC
11
Approved as to Form:
Date
By:
Betty Burnett
General Counsel
Date
By
John F, Foley
General Manager
MNWD
Approved as to Form:
Date
By:
General Counsel
Date
By
Dave Adams
City Manager
City of San Juan Capistrano
's • 1i
Approved as to Form:
Date
By:
Daniel J. Payne
General Counsel
Date
By
Renae M. Hinchey
General Manager
LBCWD
Approved as to Form:
Date
By:
General Counsel
Date
By
George Scarborough
City Manager
City of San Clemente
Approved as to Form: Approved as to Form:
12
Date
By:
City Attorney
Date
1-2
13
City Attorney
v.816-10-08
Attachment A. ---- San Juan Creek Property MOU
14
v.8 16-10-08
Attachment B
Examples of Cost Sharing in the Project Under Various Scenarios
ALL COSTS IN $1,000'S
Example 1: Five Ageneses Participate Through 2011
2007 & 2008
2009
2010
2011 Total
Total Cost $225
$720
$890
$1,465 $3,300
No. of Agencies 5
5
5
5
Cost Per Agency $45
$144
$178
$293 $660
Conclusion: All agencies contribute the same $660k
Example 2: Five Agencies Participate Through 2009, With Four Thereafter
2007 & 2008
2009
2010
2011 Total
Total Cost $225
$720
$890
$1,465 $3,300
No. of Agencies 5
5
4
4
Cost Per Agency $45
$144
$223
$366 $778
Entitlements
Total
Conclusion: One agency contributed:
$189
$189
Four agencies contributed:
$778
$3,111
Total =
$3,300
In 2010, the four agencies remaining in the project would have to get a budget increase from $660k
to $778k to continue.
If the project goes to construction, each agency would be credited the entitlement amounts shown
above.
The $3.3 million would be charged to the agencies proceeding with construction
based on their capacity in the project.
If the project does not go to construction, no money changes hands.
Example 3: Five Agencies Start the Project, But One Agency Drops after 2009
2007 & 2008
2009
2010
2011
Total Cost $225
$720
$200
$0
No, of Agencies 5
5
5
5
Cost Per Agency $45
$144
$40
$0
Conclusion: One .agency wants to stop at the end of 2009.
Other agencies consider the increase in costs and decide to stop the project as well.
The project stops at the end of 2009, but requires costs in 2010 to wind things up.
The cost to wind things up in 2010 is $200k.
Each agency pays the same amount of $229k and the project does not go into construction.
15
Total
$1,145
$229
32400 PASEO A®EL.ANTC
SAN .JUAN CAPIS"i RANO, CA 92675
(949) 493-1171
(949) 493-1053 FAX
www.sanjitaneapistrano.org
NOTIFICATION OF MEETING OF POTENTIAL INTEREST
OF THE SAN JUAN CAPISTRANO CITY COUNCIL
The City Council of San Juan Capistrano will meet at 6:00 p.m. on Tuesday, August 5,
2008 in the City Council Chamber in City Hall, to consider: "Consideration of the
Final Conformed Agency Participation Agreement to Explore the Feasibility of an
Ocean Desalinization Plant - Municipal Water District of Orange County
(MWDOC); South Coast Water District (SCWD); Laguna Beach County Water
District (LBCWD), Moulton Niguel Water District (MNWD); and the City of San
Clemente (CSC), and Appropriation of Funds" — Item No. D15.
If you have specific thoughts or concerns regarding this item, you are encouraged to
participate in this decision making process. You can communicate with the City Council
through correspondence addressed to the Council and/or by attending the meeting and
speaking to the Council during the public meeting.
Correspondence related to this item must be received at the City Clerk's office by 5:00
p.m. on Monday, August 4, 2008 to allow time for the Council to consider its content.
If you would like to speak at the meeting, please complete a yellow "Request to Speak"
form found inside the entrance to the Council Chamber. This form is turned in at the
staff table, just in front of the Council dais. You will be called to speak by the Mayor
when the item is considered.
You have received this notice at the request of the City staff member Eric P. Bauman,
Water Engineering Manager. You may contact that staff member at (949) 487-4312
with any questions.
The agenda, including agenda reports, is available to you on our web site:
www.san'uancapistrano.org. If you would like to subscribe to receive a notice when
agendas are posted to the web site, please make that request by sending an e-mail to:
cit clerk san'uanca istrano.or .
Meg Monahan, MMC
City Clerk
cc: South Coast Water District; Moulton Niguel Water District; Laguna Beach County
Water District; Laguna Beach County Water District, Municipal Water District of
Orange County; City of San Clemente; John G. O'Donnell, Utility Director, Eric P.
the Past to Enhance the Future
Printed on 100% recycled paper
MEMBERS OF THE CITY COUNCIL
Ir[uaaaxeTE@
SAM ALLL VATO
THOMAS W. HRIBAR
ESTABIIS�EO
�' �gs0
MARK NIELSEN
1 76
JOE SOTO
DR. LONDRES U80
NOTIFICATION OF MEETING OF POTENTIAL INTEREST
OF THE SAN JUAN CAPISTRANO CITY COUNCIL
The City Council of San Juan Capistrano will meet at 6:00 p.m. on Tuesday, August 5,
2008 in the City Council Chamber in City Hall, to consider: "Consideration of the
Final Conformed Agency Participation Agreement to Explore the Feasibility of an
Ocean Desalinization Plant - Municipal Water District of Orange County
(MWDOC); South Coast Water District (SCWD); Laguna Beach County Water
District (LBCWD), Moulton Niguel Water District (MNWD); and the City of San
Clemente (CSC), and Appropriation of Funds" — Item No. D15.
If you have specific thoughts or concerns regarding this item, you are encouraged to
participate in this decision making process. You can communicate with the City Council
through correspondence addressed to the Council and/or by attending the meeting and
speaking to the Council during the public meeting.
Correspondence related to this item must be received at the City Clerk's office by 5:00
p.m. on Monday, August 4, 2008 to allow time for the Council to consider its content.
If you would like to speak at the meeting, please complete a yellow "Request to Speak"
form found inside the entrance to the Council Chamber. This form is turned in at the
staff table, just in front of the Council dais. You will be called to speak by the Mayor
when the item is considered.
You have received this notice at the request of the City staff member Eric P. Bauman,
Water Engineering Manager. You may contact that staff member at (949) 487-4312
with any questions.
The agenda, including agenda reports, is available to you on our web site:
www.san'uancapistrano.org. If you would like to subscribe to receive a notice when
agendas are posted to the web site, please make that request by sending an e-mail to:
cit clerk san'uanca istrano.or .
Meg Monahan, MMC
City Clerk
cc: South Coast Water District; Moulton Niguel Water District; Laguna Beach County
Water District; Laguna Beach County Water District, Municipal Water District of
Orange County; City of San Clemente; John G. O'Donnell, Utility Director, Eric P.
the Past to Enhance the Future
Printed on 100% recycled paper
32400 PASEO AOELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171 `-
(949) 493-1053 FAx
WWW.sanjuaiicapistrano.org 1776
August 12, 2008
NOTIFICATION OF ACTION BY THE
CITY COUNCIL OF SAN JUAN CAPISTRANO
MEMBERS OF THE CITY COUNCIL
SAM ALLEVATO
THOMAS W. HRISAR
MARK NIELSEN
JOE $OTO
DR. LONDRES USO
On August 5, 2008, the City Council of San Juan Capistrano met regarding:
"Consideration of the Final Conformed Agency Participation Agreement to
Explore the Feasibility of an Ocean Desalinization Plant - Municipal Water District
of Orange County (MWDOC); South Coast Water District (SCWD); Laguna Beach
County Water District (LBCWD), Moulton Niguel Water District (MNWD); and the
City of San Clemente (CSC), and Appropriation of Funds" Item No. D15.
The following action was taken at the meeting: Final Conformed Agency
Participation Agreement to Explore the Feasibility of an Ocean Desalinazation
Plant with Municipal Water District of Orange County, South Coast Water District,
Laguna Beach County Water District, Moulton Niguel Water District, and the City
of San Clemente Approved; $40,000 of the $236,000 Project Allocation to be
Returned. to the Capital Reserve Fund; and the City Manager, Authorized to
Execute the Final Version of the Agreement Substantially in Conformance with
the Draft Agreement.
If you have any questions regarding this action, please contact Eric P. Bauman, Water
Engineering Manager at (949) 487-4312 for more detailed information.
Thank you,
M9g Monah n, MMC
CAv Clerk
Cc: South Coast Water District; Moulton Niguel Water District; Laguna Beach County
Water District; Laguna Beach County Water District; Municipal Water District of
Orange County; City of San Clemente; John G. O'Donnell, Utility Director; Eric P.
Bauman, Water Engineering Manager
San ,Juan Capistrano: Preserving the Past to Enhance the Future
Printed on 100% recycled paper