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1990-0517_MOIULTON NIGUEL WATER DISTRICT_Agreement0 0 City Copy AGREEMENT BETWEEN MOULTON NIGUEL WATER DISTRICT AND CITY OF SAN JUAN CAPISTRANO FOR ASSIGNMENT OF TREATMENT CAPACITY IN THE SOUTH EAST REGIONAL RECLAMATION AUTHORITY TREATMENT PLANT THIS AGREEMENT is made and entered into this I L day of , 1990, by and between the MOULTON NIGUEL WATER DISTRICT, a California water district organized and existing under Division 13, Section 34000 et seq. of the Water Code of the State of California ("MNWD") and the CITY OF SAN JUAN CAPISTRANO, a municipal corporation of the State of California ("CITY"). R E C I T A L A. MNWD and CITY are members of the South East Regional Reclamation Authority ("SERRA") pursuant to the Joint Exercise of Powers Agreement dated March 9, 1970 (the "Joint Powers Agreement"). MNWD and CITY are both members of SERRA Project Committee No. 2 which was established for the acquisition, use, operation, maintenance and expansion of the SERRA Jay B. Latham Regional Treatment Plant (the "SERRA Plant"). The members of SERRA Project Committee No. 2 have entered into various agreements and executed various documents concerning the SERRA Plant and the wastewater and solids capacity rights therein, and such agreements and documents shall be hereinafter referred to as the "Project Committee No. 2 Agreements". Pursuant to the PBG/1301 5/16/90 - FINAL i 0 Project Committee No. 2 Agreements, members have capacity rights for the receipt, treatment and disposal of wastewater and solids in the SERRA Plant through use of capacity owned by SERRA. B. MNWD has a capacity right in the SERRA Plant for the receipt, treatment and disposal of 5.0 million gallons per day ("mgd") of wastewater and solids. Consolidated Improvement District No. 3 of MNWD ("I.D. No. 311) has the rights to 3.98 mgd of MNWD's total capacity right in the SERRA Plant. MNWD's remaining 1.02 mgd capacity right in the SERRA Plant is for the use of Improvement District Nos. 1, 7 and 8 of MNWD. C. CITY has a capacity right in the SERRA Plant for the receipt, treatment and disposal of 2.5 mgd of wastewater and solids and desires to acquire an additional capacity right of 2.0 mgd in the SERRA Plant from MNWD. D. MNWD is currently completing construction of the 3A Treatment Plant (the 113A Plant"), which will have a total capacity of 8 mgd. Of the total 8 mgd of capacity in the 3A Plant, MNWD shall own 6.5 mgd of capacity pursuant to a previous conveyance of 1.5 mgd of capacity in the 3A Plant to Santa Margarita Water District. The 2.0 mgd of MNWD's capacity right in the SERRA Plant proposed to be assigned to CITY hereunder shall be replaced by the 3A Plant capacity. E. MNWD, as part of SERRA, has planned for meeting its needs for sewage treatment and disposal through the SERRA Plant as well as other facilities owned by MNWD and jointly with other agencies. MNWD has also formulated a reclaimed water plan for -2- PBG/1301 5/16/90 - FINAL the conservation of potable water within the MNWD boundaries, which will utilize facilities at the new 3A Plant. MNWD has determined that the 2.0 mgd capacity right in the SERRA Plant assigned to CITY hereunder will be adequately replaced through the treatment and reclaimed water facilities at the 3A Plant, and that existing and planned development within MNWD will be adequately served through the use of capacity at the 3A Plant in lieu of using the 2.0 mgd capacity right in the SERRA Plant assigned to CITY pursuant to this Agreement. F. CITY is willing to acquire the right to 2.0 mgd of wastewater and solids treatment capacity in the SERRA Plant from MNWD at a cost equal to MNWD's cost of replacing such capacity through construction of replacement capacity for MNWD's use at the 3A Plant. G. The Joint Powers Agreement provides in part that capacity rights in the SERRA Plant may not be assigned by MNWD to CITY without the written consent of the participating members of Project Committee No. 2. H. For purposes of compliance with the California Environmental Quality Act ("CEQA"), the parties agree that MNWD shall be the lead agency with respect to the assignment of capacity to CITY provided in this Agreement. NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions contained herein, the parties to this Agreement hereby agree as follows: -3- PBG/1301 5/16/90 - FINAL • i Section 1. Assignment of Treatment Capacity. MNWD hereby agrees to irrevocably assign to CITY a capacity right of 2.0 mgd for wastewater and solids treatment in the SERRA Treatment Plant on behalf of I.D. No. 3 and CITY agrees to accept said assignment of such capacity. The assignment of capacity described herein is contingent upon the occurrence of the conditions set forth in Section 4 of this Agreement, and shall be effective only upon the occurrence of such conditions. Section 2. Capacity Right Cost. CITY agrees to pay an amount equal to MNWD's cost of constructing 2.0 mgd of wastewater and solids capacity at the 3A Plant, inclusive of the costs of all related facilities, for the 2.0 mgd of capacity in the SERRA Plant assigned to CITY herein. The total cost of CITY's acquisition of MNWD's capacity right of 2.0 mgd in the SERRA Plant is Eight Million One Hundred Thirty Thousand Five Hundred Ninety Two Dollars ($8,130,592) (the "Acquisition Price"), as further described and set forth in the letter from MNWD to CITY dated May 2, 1990, attached hereto as Exhibit "A" and incorporated herein by this reference. Section 3. Pent of Acquisition Price. Within sixty (60) days of receipt of the written notice from MNWD pursuant to Section 4 of this Agreement, CITY agrees to pay MNWD the Acquisition Price in the amount of $8,130,592 by cashier's check or money order. -4- PBG/1301 5/16/90 - FINAL Section 4. Conditions on Assignment. CITY and MNWD agree that the assignment of the treatment capacity right for 2.0 mgd of wastewater and solids to CITY is contingent upon the following two (2) conditions: (a) Completion of CEQA proceedings for the assignment of capacity by MNWD and the expiration of the statute of limitations for such proceedings; and (b) Written approval by all members of SERRA Project Committee No. 2. Upon the satisfaction of the two (2) conditions set forth above, MNWD shall notify CITY in writing. The assignment of the 2.0 mgd capacity right to CITY hereunder shall be effective on the date MNWD receives a cashier's check or money order for the Acquisition Price in the amount of $8,130,592 from CITY (the "Effective Date"). CITY may not utilize the 2.0 mgd capacity right assigned hereunder until the Effective Date. Section 5. Capacity Assurance. The parties agree that CITY is paying for and acquiring pursuant to the terms and conditions provided herein an assured 2.0 mgd of wastewater and solids treatment capacity in the SERRA Plant and MNWD agrees to provide CITY with 2.0 mgd assured liquids and solids capacity in the SERRA Plant in accordance with this Agreement. Section 6. Capital and Operation and Maintenance Costs. CITY, in conjunction with acceptance of the assignment of MNWD's 2.0 capacity right in the SERRA Plant and as of the Effective Date, shall have the corresponding obligation pay all capital -5- PBG/1301 5/16/90 - FINAL E i costs for repair and replacement and all operations and maintenance expenses of the SERRA Plant for such capacity right pursuant to the JPA, Project Agreements and any other documents setting forth terms and conditions with respect to the capacity right assigned hereunder, or to capacity rights for the receipt, treatment and disposal of wastewater and solids in the SERRA Plant in general, and pursuant to any future arrangements made by SERRA and/or the members of Project Committee No. 2 or other applicable Project Committees with respect to capacity rights in the SERRA Plant. Section 7. Assumption of Obligations. MNWD will assume fiscal responsibility for its proportionate share, as such share is set forth in previous agreements among the Project Committee No. 2 members, for Project Committee No. 2 engineering and construction projects related to the 2.0 mgd capacity right assigned hereunder and expenditures for such projects previously authorized by MNWD during the period up to the Effective Date. Upon the Effective Date, CITY shall assume all future fiscal responsibility and all future project expenditures not previously authorized by MNWD and all other obligations and liabilities with respect to the 2.0 mgd capacity right assigned to CITY by MNWD hereunder, and as MNWD's assignee and successor -in -interest, shall assume all rights, duties and obligations associated with such capacity right as set forth in the JPA, the Project -6- PBG/1301 5/16/90 - FINAL 0 0 Committee No. 2 Agreements, and any other documents related to such agreements or the terms provided therein, on the Effective Date. Section B. Term of Assignment. The capacity right assigned to CITY by MNWD as set forth in this Agreement shall be in perpetuity unless otherwise terminated by mutual written agreement between the parties, or unless otherwise required under the terms of any written contract or agreement to which SERRA or the Project Committee No. 2 members are a party; provided, MNWD and CITY agree that neither party shall initiate termination of this Agreement based on such contracts or agreements, and further agree that the parties' intent pursuant to termination based on such contracts or agreements is to include only termination initiated by a third party not a party hereto. Section 9. Indemnification. CITY shall indemnify and hold harmless MNWD and MNWD's directors, officers, representatives, consultants, agents and employees from and against all assessments, penalties, claims, damages, losses, expenses and other costs, including costs of attorney's fees, arising out of or resulting from or in connection with CITY's acquisition of the 2.0 mgd capacity right in the SERRA Plant assigned to CITY by MNWD pursuant to this Agreement or CITY's use of such capacity in the SERRA Plant, including but not limited to any claims, assessments and penalties made by the state of California or the United States government, including any state or federal agency or department. -7- PBG/1301 5/16/90 - FINAL Section 10 Covenant by City. CITY covenants that it shall not file any demands, claims, causes of action of any type or nature, or institute any administrative or judicial proceedings of any type or nature, challenging or in any way questioning CITY's acceptance of the assignment of the 2.0 mgd capacity right from MNWD hereunder, the determination of the Acquisition Price hereunder, CITY's obligation to pay the Acquisition Price or the actual payment thereof by CITY, or CITY's indemnification obligation set forth in Section 9 of this Agreement, and CITY expressly waives any and all such demands, claims, causes of action or challenges it might have. Section 11. Covenant by MNWD. MNWD covenants that it shall not file any demands, claims or causes of action of any type or nature, or institute any administrative or judicial proceedings of any type or nature, challenging or in any way questioning MNWD's obligation under Section 5 of this Agreement to provide CITY with an assured 2 mgd of wastewater and solids treatment capacity in the SERRA Plant and MNWD expressly waives any and all such demands, claim, causes of actions or challenges it might have. Section 12. General. (a) Notices. All notices required or permitted under this Agreement shall be mailed, delivered or transmitted by one Party to the other Party at the address specified herein, and each such notice shall be deemed effective and given (i) upon receipt if personally delivered, (ii) upon being transmitted if -8- PBG/1301 5/16/90 - FINAL n U 0 sent by telegram, FAX or telecopy, (iii) three (3) business days after deposit in the United States Mail, if sent by certified or registered mail with postage prepaid, return receipt requested or (iv) upon receipt if sent in any other way. Either Party hereto may from time to time, by written notice to the other, designate a different notice address which shall be substituted for the one specified herein: MOULTON NIGUEL WATER DISTRICT 27500 La Paz Road Laguna Niguel, CA 92656-3489 Attn: General Manager CITY OF SAN JUAN CAPISTRANO 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Director of Public Works (b) Attorneys Fees. In the event that an action is commenced by either party to this Agreement to enforce or construe its rights or obligations arising hereunder, the prevailing party in such action, in addition to any other relief or recovery ordered by the Court, shall be entitled to recover all statutory costs, plus a reasonable amount for attorney's fees. (c) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. -9- PBG/1301 5/16/90 - FINAL . 0 • (d) Entire Agreement. This Agreement constitutes the entire agreement between the parties and supercedes all prior agreements and understandings, both written and oral, between MNWD and CITY with respect to the subject matter of this Agreement. (e) Amendments. This Agreement may be amended or modified only in writing signed by both parties. Any amendment is subject to the approval of the members of the SERRA Project Committee No. 2. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth hereinabove. MOULTON NIGUEL WATER DISTRICT APPROVED AS TO FORM: Bowie, Arneson, Kadi & Dixon - Legal Counsel, Moulton Niguel Water District By V/ 4 (2 Patricia B. Giannone -10- PBG/1301 5/16/90 - FINAL ATTEST: LA CITY OF SAN JUAN CAPISTRANO By, Anthony L. and, Mayor pro tem CITY OF SAN JUAN CAPISTRANO BY &,�l � City C rk APPROVED AS TO FORM: City Attorney for City of San Juan Capistranq� By r�yJv�n -11- PBG/1301 5/16/90 - FINAL May 2, 1990 Moulton Niguel Water Mr. Bill Murphy Director of Public Works City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Subject: Purchase of Treatment Capacity at SERRA Dear Mr. Murphy: Reference is made to our letter of January 30, 1990 addressed to Mr. Stephen B. Julian in which the District offered to transfer 2.0 mgd of treatment capacity at the J.B. Latham Plant (SERRA) to the City of San Juan Capistrano (CSJC) for consideration as outlined therein. After further review and subsequent discussions with the City, the District is willing to modify its original offer. As requested, the District has studied the possibility of removing the conditions relating to the transfer which were enumerated in the January 30, 1990 letter. Based upon this study the District is willing to offer the City an unencumbered 'Acquisition Price'. The price is $4,065,296 per mgd or $8,130,592 for the 2.0 mgd requested by the City. "Attachment All to this letter outlines the cost and items contained within the 'Acquisition Price'. Should you have any questions relating to this matter, please feel free to contact me at your convenience. As stated previously, the District is proud to be a part of these types of solutions to regional concerns wherein all the citizens of the area benefit. Sincerely, MOULTON NIGUEL WATER DISTRICT Inv V.ley al Manager JVF/JNW:cros cc: Mr. Bill Knitz Mr. Bill Becker EXHIBIT "A" a public agency 27500 La Paz Road, Laguna Niguel California 92656-3489 714/831-2500 FAX 7141831.5651 Ei 0 0 ATTACHMENT "A" MAY 2, 1990 LETTER TO THE CITY OF SAN JUAN CAPISTRANO COST SUMMARY MNWD PLANT 3A Construction Cost per million gallons of treatment capacity. For reference, this item relates to Item No. 1, Construction, contained and explained in our January 30, 1990 letter, Attachment "A". 2. Engineering The District contracted for engineering services for Plant 3A from the engineering group of CWC -HDR, Inc./HYA Consulting Engineers/NBS/Lowry. The engineering effort was divided into three (3) Phases. Phase I was the feasibility study of the Plant site to determine the desired treatment process and layout. Phase II called for the preparation of Plans & Specifications, while Phase III provided construction management and inspection services. In addition to the main engineering effort, the District has entered into a number of smaller engineering -service contracts relating to Plant 3A. These efforts are outlined on the last two (2) pages of this attachment. $2,834,120 $ 469,176 The engineering cost for each Phase and the miscellaneous engineering -service efforts, less the AWT effort, is shown below: Cost AWT Plant 3A Phase I $ 192,400 $ 42,300 $ 150,100 Phase II 983,200 186,200 797,000 Phase III 1,650,000 108,000 1,542,000 Misc. Eng., etc. 1.264.309 Total Plant 3A $3,753,409 Cost per mgd: 1/8 = 12.5% 3,753,409 x .125 = $469,176 L-.14 Attachment "A" Page Two 3 Cost of Real Estate Cost of real estate is not included in discretion. $ -0- the summary at the District's 4. Legal Cost of legal services in preparation $ 5,000 of Agreement. 5. Costs of Solids Eguioment Estimated cost to outfill 3A with all $ 419,500 necessary solids handling equipment is set at $3,356,000. Cost per mgd = $419,500 6. Costs of 3A outfall (Lakefill Line) SJBA authorized NBS/Lowry to proceed $ 337,500 with repair of Lakefill Pipeline. Estimate cost for this work is set at $2,700,000. Cost per mgd = $337,500 7. Total Cost Per mgd $4,065,296 ! 0 Attachment "A" Page Three MISCELLANEOUS ENGINEERING, CONSTRUCTION, MATERIAL COSTS 1. Contract 3A-18 Pre -Construction_ Assistance Butier Engineering was contracted with to provide constructibility review during design phase. 2. Contract No. 3A-24, Plant 3A Demolition Greenleaf Construction demo "old" Plant 3A. 3. Contract No. 3A-27, SJBA Pipeline Study Mr. William Mills was contracted with to perform an analysis of the SJBA system to act as an outfall for Plant 3A. 4. Contract No. 3A-28, Plant 3A Cost Allocation Study HYA was contracted with to perform a unit by unit cost study of Plant 3A to assist in determining a fair selling price. 5. Contract No. 3A-29, SJBA Lakefill Line Study HYA was contracted with to do a hydraulic analysis and to determine probable repairs to the Lakefill Line. 6. Contract No. 3A-29-1, SJBA Lakefill Line Connection to Chiauita Outfall Colich & Sons was contracted with to connect the two (2) lines and NBS/Lowry provided construction inspection services. 7. Contract No. 3A-30, Plant 3A CPM Services Butier Engineering was contracted with to provide CPM scheduling for Plant 3A construction. $ 31,132 152,250 23,162 25,000 70,000 276,785 102,700 Attachment "A" Page Four MR HYA billed the District directly for the 28,280 printing of drawings and specifications used for bidding. Bid drawings were subsequently updated to include addenda material. 9. Contract No. 3A-32. AOMD Permits HYA supported by Montgomery Engineers 60,000 was contracted with to assist in obtaining necessary AQMD construction permits. 10. Contract No. 3A-27, Fire Protection Pipeline HYA assisted by MACCO Constructors provided 95,000 the necessary fire protection system for Plant 3A. 11. Capital Purchases Expenses necessary to purchase capital 400,000 equipment required to start-up the treatment facility which were not included in construction contract. DIRECTOR OF PUBLIC WORKS 1. STATUS REPORT - RECYCLING ISSUES/SOLID WASTE MANAGEMENT 810.60 2. Written Communications: Report dated June 5, 1990, from the Director of Public Works, setting forth the City's efforts to comply with Assembly Bill 939. The report notes that Phase I will begin when the City initiates a 3 -bin approach to recycling. The program will incorporate approximately 1,000 curbside participants in San Juan Capistrano, Dana Point and San Clemente and 2,000 residents in the County. Solag will provide bins and trucks for collection; each resident will receive 3 bins and instructions to place recyclables in the appropriate container. Collection of recyclables will occur on regular trash pick-up day by a special truck designed to accommodate recycling material. The material will then be transported to a buy-back center in Lake Forest. The Director of Public Works made an oral report. In response to Councilman Friess, Mr. Murphy advised that further study would be given to phasing of the cost. With the concurrence of Council, Mayor pro tem Bland ordered the report received and filed. Written Communications: Report dated June 5, 1990, from the Director of Public Works, forwarding an agreement with the County for construction of the Stonehill Drive Extension. Total project cost was estimated at $11,534,000, with the City's obligation estimated at $2.3 million. Approval of Agreement: It was moved by Councilman Friess, seconded by Councilman Buchheim and unanimously carried to approve the Cooperation Agreement No. D89-343, for the extension of Stonehill Drive from Seaside Drive to Camino Capistrano, including bridges across San Juan Creek Channel and the AT&SF railway. The Mayor and City Clerk were authorized to execute the agreements on behalf of the City. Written Communications: Report dated June 5, 1990, from the Director of Public Works forwarding an agreement with the Moulton Niguel Water District for the acquisition of two million gallons of sanitary capacity now available at the SERRA Treatment Plant due to Moulton Niguel's construction of a planted in the vicinity of I-5 and Oso Parkway. The agreement requires the City to pay its equivalent share of construction costs of Moulton Niguel Water District's 3A Plant estimated at $8,130,592. -10- 6/5/90 r Approval of Agreement: It was moved by Councilman Buchheim, seconded by Councilman Schwartze and unanimously carried to approve the Agreement between Moulton Niguel Water District and the City for Assignment of Treatment Capacity in the South East Regional Reclamation Authority Treatment Plant. The Mayor and City Clerk were authorized to execute the agreements on behalf of the City. ORDINANCES Written Communications: Report dated June 5, 1990, from the City Clerk, advising that the Ordinance was introduced at the meeting of May 15, 1990, and was scheduled for adoption. Adoption of Ordinance: The City Attorney read the title of the Ordinance next in order. Further reading of all Ordinances had been waived earlier in the meeting. It was moved by Councilman Schwartze, seconded by Councilman Buchheim that the following Ordinance be adopted: NT i cmrvmr%m i uaca An4y a i mu%- i umca - nN vRUnNH1Nl.0 yr THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AMENDING SECTION 9-2.312, 9-3.608, AND 9-3.623 OF THE MUNICIPAL CODE WITH REGARD TO PROVISIONS REGULATING TEMPORARY USES AND STRUCTURES The motion carried by the following vote: AYES: Councilmen Schwartze, Friess, Buchheim, and Mayor pro tem Bland NOES: None ABSENT: Mayor Hausdorfer COUNCILMANIC ITEMS 1. ORAL REPORTS OF OUTSIDE AGENCIES Capistrano Valley Wastewater Authority (1040.60): Councilman Buchheim noted that the Authority had met this date and will be requested retention of the Capistrano Valley Wastewater. -ll- 6/5/90 June 8, 1990 Mr. John V. Foley General Manager Moulton Niguel Water District 27500 La Paz Road Laguna Niguel, California 92656-3489 Attention John Wiper Re: Agreement for Purchase of Treatment Capacity at SERRA Dear Mr. Foley: At their regular meeting held June 5, 1990, the City Council of the City of San Juan Capistrano approved the agreement with the Moulton Niguel Water District for acquisition of two million gallons of sanitary capacity at the SERRA Treatment Plant in Dana Point. Three fully -executed copies of the agreement are enclosed for your use. We have retained one fully -executed copy for our files. Thank you for your cooperation in this matter. Very truly yours, Cheryl Johnson Deputy City Clerk Enclosures cc: Director of Public Works 32400 PASEO ADELANTO. SAN JUAN CAPISTRANO. CALIFORNIA 92675 • (714) 493.1171 • JMa► MEMBERS THE f OF CITY COUNCIL ANTHONY L. BLAND LAWRENCE F. BUCHHEIM KENNETH E. FRIESS VAINNAm4 GARY L. HAUSDORFER IfIAlllfxl0 I86I 1776 PHILLIP R. SCHWARTZE 0 • CITY MANAGER STEPHEN B JULIAN June 8, 1990 Mr. John V. Foley General Manager Moulton Niguel Water District 27500 La Paz Road Laguna Niguel, California 92656-3489 Attention John Wiper Re: Agreement for Purchase of Treatment Capacity at SERRA Dear Mr. Foley: At their regular meeting held June 5, 1990, the City Council of the City of San Juan Capistrano approved the agreement with the Moulton Niguel Water District for acquisition of two million gallons of sanitary capacity at the SERRA Treatment Plant in Dana Point. Three fully -executed copies of the agreement are enclosed for your use. We have retained one fully -executed copy for our files. Thank you for your cooperation in this matter. Very truly yours, Cheryl Johnson Deputy City Clerk Enclosures cc: Director of Public Works 32400 PASEO ADELANTO. SAN JUAN CAPISTRANO. CALIFORNIA 92675 • (714) 493.1171 AGENDA ITEM June 5, 1990 TO: Stephen B. Julian, City Manager FROM: W. D. Murphy, Director of Public Works SUBJECT: Agreement with Moulton Niguel Water District for Acquisition of Sanitary Capacity SITUATION Over the past ten months, the City staff has been negotiating with members of the Moulton Niguel Water District (MNWD) for the acquisition of two million gallons of sanitary capacity. This capacity has become available at the J.B. Latham (SERRA) Treatment Plant in the Dana Point area as a result of Moulton Niguel's construction of a plant located in the vicinity of I-5 and Oso Parkway. Under the provisions of the agreement, the City would procure capacity from Moulton Niguel at the Serra facility for the construction costs of the new facility adjacent to I-5. By this acquisition, the City will achieve capacity for the General Plan build -out. The SERRA Board has reviewed this proposal and has no opposition to the capacity transfer. NOTIFICATION John Wiper, Moulton Niguel Water District William Becker, SERRA COMMISSION/BOARD REVIEW, RECOMMENDATIONS N/A FINANCIAL CONSIDERATIONS The agreement requires San Juan Capistrano to pay its equivalent share of the construction costs of MNWD's 3A Plant. The construction costs were finalized in May 1990 and San Juan Capistrano's share will be due 60 days following the written request of MNWD. The cost for the two million gallon capacity right is $8,130,592. Payment for this capacity is available in the Sewer Enterprise Fund which has been developed from the collection fees assessed to new development. ALTERNATE ACTIONS 1. Approve the agreement with Moulton Niguel Water District for the acquisition of two million gallons of sanitary treatment capacity. 2. Modify and approve the agreement. 3. Request further information from Staff. FOR CITY COUNCIL AGENDN /7/ C, Agenda Item • June 5, 1990 Page 2 RECOMMENDATION By motion, approve the agreement with Moulton Niguel Water District for the acquisition of two million gallons of sanitary treatment capacity. Respectfully submitted, W. D. Murphy WDM:nb