04-0504_SOUTH COAST WATER DISTRICT_Agreement (2)•
AGREEMENT
(OCEAN OUTFALL LINE)
•
X41.-..
This Agreement is made this day of —2004, by and
between the City of San Juan Capistrano (hereinafter "City"), and the South
Coast Water District (hereinafter "SCWD").
RECITALS:
Whereas, City and SCWD are the co-owners of a waste water outfall line
which is located in Dana Point, California, known as the Dana-Point—San Juan
Capistrano Ocean Outfall (hereinafter "Outfall"), and
Whereas, the Outfall is owned by City and SCWD in the following
percentages: City --45.25%; SCWD--54.75%, and
Whereas, City, SCWD, and the Orange County Waterworks District No. 4
("District No. 4") entered into an agreement, dated August 13, 1981, providing for
District 4's acquisition of lease and option to purchase rights to the Outfall, and
Whereas, Waterworks District No. 4 reorganized as the Capistrano Valley
Water District ("CVWD") on or about 1965, and
Whereas, the Outfall has not been utilized for any purpose by any
governmental entity for many years, and
Whereas, City merged with the CVWD in 2003 such that CVWD no longer
exists, and
Whereas, City has assumed the assets and liabilities of the CVWD, and
Whereas, City and SCWD find and determine that it is appropriate to
terminate the lease and option to purchase provisions set forth in the August 13,
1981 agreement,
NOW, THEREFORE, City and SCWD hereby mutually resolve as follows:
Section 1. Reveal of Agreement.
The August 13, 1981 "Agreement for Sale and Lease of Ocean Outfall
Line" is hereby repealed in its entirety. All obligations of the former District No. 4,
as assumed by City through governmental merger, have been duly satisfied and
discharged.
SD
0
AGENDA REPORT
TO: Dave Adams, City Manager
FROM: Amy Amirani, Public Works Director
• 5/4/2004
D7
SUBJECT: Consideration of Approval of Two Agreements Relating to the Dana Point
Ocean Outfall (San Juan Basin Authority) (South Coast Water District)
RECOMMENDATION:
By motion,
1. Approve the Termination of the Brine Line and Ocean Outfall Agreement with the
San Juan Basin Authority, repealing an August 18, 1981 agreement between the
City of San Juan Capistrano and San Juan Basin Authority providing for terms and
conditions affecting the Dana Point Ocean Outfall; and,
2. Approve the Ocean Outfall Line Agreement with South Coast Water District,
repealing an August 13, 1981 agreement between the City of San Juan Capistrano
and South Coast Water District for the Dana Point Ocean Outfall, and direct the City
Clerk to process recording of the newly signed agreements.
SITUATION:
A. Summary and Recommendation
Staff is recommending the repeal of two agreements referring to the old Dana Point
Ocean Outfall. The outfall was never put into use per the agreements because the
outfall was found to have been previously damaged. The City Attorney has
recommended entering into two new agreements that dissolve the earlier ones; these
two new agreements will re-establish status and indemnity provisions for the facility.
Two separate agreements are required because the South Coast Water District was not
a signature to the August 18, 1981, subletting agreement. Both agreements must be
signed and accepted concurrently, and therefore, have been presented together. Staff is
recommending that City Council enter into new agreements for the Dana Point Ocean
Outfall.
B. Bgckctround:
The Dana Point Ocean Outfall (Attachment 1) was originally constructed for the Dana
Point Treatment Facility. It has not been utilized in years, but it has remained in place
FOR CITY COUNCIL AGENDA. %
Agenda Report •
Paae 2
• May 4, 2004
as an alternative for disposal of effluent from past and future treatment projects. The
City of San Juan Capistrano and the Dana Point Sanitation District (now a part of South
Coast Water District) jointly own the Dana Point Ocean Outfall. The breakdown of
ownership is as follows: the City owns 45.25% and the Sanitation District owns 54.75%.
An agreement was entered into on August 13, 1981, between the City of San Juan
Capistrano, the Dana Point Sanitary District, and the Orange County Water District No.
4 (later named the Capistrano Valley Water District (CVWD), whereby the CVWD
leases the Dana Point Ocean Outfall for $4,000 per year until the outfall is put into
operation. After initiating use, the lease increases to $8,000 (Attachment 2).
A subletting agreement was entered into between the Orange County Water District No.
4 and the San Juan Basin Authority (SBJA) on August 18, 1981, for the purpose of
allowing SJBA to connect brine lines from the barrier project and/or wells. This
agreement allows the SBJA to discharge brine water through the Dana Point Outfall for
a period of 55 years from the August 18, 1981, commencement date. The SJBA sublets
the outfall from the Water District at the same terms as the first agreement: $4,000 per
year until initiating use and $8,000 thereafter (Attachment 3).
When the San Juan Basin Authority introduced brine flow to the Dana Point Outfall in
the early 1980's, a serious leak was discovered in the surf zone immediately offshore.
The brine flow was directly transferred to the South Orange County Wastewater
Authority (SOCWA) ocean outfall, and has remained thusly connected. No further use
of the Dana Point Outfall has been attempted since that time, as repairs to the outfall
have not been performed. It is, therefore, unlikely that the Dana Point Outfall will be
used for these purposes in the future. The agreements, however, have remained in
place.
The SJBA Board of Director's, at their regular meeting of October 1, 2003, requested
that the Brine Line lease agreement be terminated in light of the fact that the brine line
has not been used in many years (Attachment 4). Staff has reviewed the situation and
believes the request to be reasonable. As a part of this consideration, it is also
appropriate to modify the existing lease provisions between South Coast Water District
and the City. More specifically, it is appropriate to terminate the out of date provisions
providing that the former Capistrano Valley Water District lease, from South Coast
Water District and the City, the subject Dana Point Outfall. Accordingly, the City
Attorney has prepared a revised outfall agreement that deletes the lease provisions and
further updates the maintenance responsibilities for the outfall line.
In conclusion, the attached agreements have been prepared by both the City's and
SJBA's legal counsel to repeal the old agreements and provide status and indemnity
provisions for the Dana Point Ocean Outfall. The "Termination of the Brine Line and
Ocean Outfall Agreement" (Attachment 5) terminates the August 18, 1981, agreement
between the Orange County Water District No. 4 (now City of San Juan Capistrano) and
the San Juan Basin Authority. The "Agreement - Ocean Outfall Line" (Attachment 6)
repeals the August 13, 1981, agreement between the Orange County Water District No.
Agenda Report •
Paqe 3
• May 4, 2004
4 (now City of San Juan Capistrano) and the South Coast Water District, and City of
San Juan Capistrano, as joint owners of the Dana Point Outfall. Entering into these two
new agreements will result in all rights and liabilities for the Dana Point Outfall returning
to that as before the signing of the 1981 agreements. Two separate agreements are
required because the South Coast Water District was not a signature to the August 18,
1981, subletting agreement. Both agreements must be signed and accepted
concurrently, and therefore, have been presented together. Staff is recommending that
City Council enter into new agreements for the Dana Point Ocean Outfall.
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS:
The Water Advisory Commission, at their March 23, 2004, meeting considered
repealing the old Dana Point Outfall agreements and recommends approval of the new
agreements. The South Coast Water District and San Juan Basin Authority Board of
Directors have approved and signed the agreements.
FINANCIAL CONSIDERATIONS:
Per the old Dana Point Outfall Agreements the City of San Juan Capistrano overall pays
$2,000, and benefits $3,620, for a net yearly income of $1,620. The new agreements
would eliminate this lease income.
South Coast Water District
San Juan Basin Authority
Agenda Report
Page 4
RECOMMENDATION:
By motion,
• May 4, 2004
Approve the Termination of the Brine Line and Ocean Outfall Agreement with the
San Juan Basin Authority, repealing an August 18, 1981 agreement between the
City of San Juan Capistrano and San Juan Basin Authority, providing for terms and
conditions affecting the Dana Point Ocean Outfall; and,
Approve the Ocean Outfall Line Agreement with South Coast Water District,
repealing an August 13, 1981 agreement between the City of San Juan Capistrano
and South Coast Water District for the Dana Point Ocean Outfall, and direct the City
Clerk to process recording of the newly signed agreements.
Respectfully submitted,
Amy Amirani
Public Works Director
AA/JM:mp
Prepared by,
Joe Mankawich
Associate Engineer
Attachments: 1. Location Map
2. Agreement dated August 13, 1981
3. Agreement dated August 18, 1981
4. San Juan Basin Authority October 1, 2003,
5. New agreement between SJBA and CSJC
6. New agreement between SCWD and CSJC
meeting minutes
OT MNE)=
DISTRICT
S)IT OLD
E
. V%'DAINA POINT OCEAN OUTFALL
Y,
ATTACHMENT 1
AGREEMENT FOR SALE AND LEASE
OP OCEAN OUTFALL LINE
THIS AGREEMENT is made and entered into this 13th day
of August, 1981, by and between the CITY of SAN JUAN,
CAPISTRANO (hereinafter "CITY"), the DANA POINT SANITARY
pISTRICT (hereinafter "SANITARY DISTRICT"),.and . ORANGE COUNTY
WATERWORKS DISTRICT NO. 4 (hereinafter "WATERWORKS DISTRICT").
WITNESSETH:
WHEREAS, CITY and SANITARY DISTRICT are the owners of
a waste water outfall line which is located in Dana Point,
Callfornia, known as the DANA POINT --SAN JUAN CAPISTRANO
OCEAN OUTFALL (hereinafter "OUTFALL"1; .and
WHEREAS, said OUTFALL is no longer needed for the
transmission of waste water because of construction of a new
outfall line by the Southeast Regional Reclamation Authority;
and
WHEREAS, WATERWORKS DISTRICT is desirous of acquiring
OUTFALL; and
WHEREAS, OUTFALL is owned by CITY and SANITARY DISTRICT
in the following percentages:
CITY 45.258
SANITARY DISTRICT 54.75%
NOW, THEREFORE, the parties hereby agree as follows:
ATTACHMENT 2
1. CITY and SANITARY DISTRICT hereby, by the execution
of this Agreement, effective the date of this Agreement,
lease OUTFALL to WATERWORKS DISTRICT for 55 years. The
lease payments shall be $4,000 per year, paid annually, in
advance, prior to January 1 of each year, until such time as
WATERWORKS DISTRICT uses said line. .Thereafter, the lease
payments shall be at the rate of $9,000 per year. VIATERWORKS
DISTRICT shall make pro rata payments for the, remainder of
calendar year 1901. The payments due pursuant to this
Agreement shall be paid directly to CITY and SANITARY DISTRICT
with CITY to receive 45.25% of each payment, and SANITARY
DISTRICT to receive 54,75% of each payment due. No adminis-
trative costs shall be deducted from any Payment,
2. CITY and SANITARY DISTRICT further grant to WATERWORKS
DISTRICT an option•to purchase said OUTFALL for the sum of
$612,'019.23. WATERWORKS DISTRICT may exercise the option to
purchase said OUTFALL at any time during the lease upon
giving written notice to CITY and SANITARY DISTRICT of its
desire to exercise; said option and' by tendering the purchase
payment to CITY AND SANITARY DISTRICT. This option shall
be exercised by WATERWORKS DISTRICT at such time as it has
received sufficient funds, by grant or otherwise, to purchase
said OUTFALL. All; sums heretofore paid by WATERWORKS
DISTRICT for lease of said OUTFALL shall be credited against
I
the purchase price.
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3. WATERWORKS DISTRXCT shall hereinafter be responsible
for maintenance of OUTFALL and shall hold CITY and SANITARY
DISTRICT free and harmless from any loss, damage, liability,
cost or expense that may arise or be caused -in any way by
use, operation or failure of OUTFALL, and shall further
indemnify CITY and SANITARY DISTRICT for any, such loss,
damage, liability, cost or expense that may arise or be
caused in any Way by use, operation or failure of OUTFALL.
4. •Notice
Any notice provided for herein shall be given in writing
and transmitted by personal delivery -by prepaid first class
nail, addressed as follows:'
CITY OF SAN JUAN CAPISTRANO
32400 Paseo Adelanto
San Juan Capistrano, California
DANA POINT SANITARY DISTRICT
34152 Del Obispo
Dana Point, California
ORANGE COUNTY WATERWORKS DISTRICT NO. 4
31301 Andres Pico Road
San Juan Capistrano, California
IN WITNESS WHEREOF, the partie6 have executed this
Agreement on the date first hereinabove written.
CITY OF SAN JUAN CAPISTRANO
Mayor v%
BY , _L
City Cler
m
a
11
DANA POINT SANITARY DISTRICT
ORANGE'COUNTY wATERWORKS DISTRICT
NO. 4
Ey
Phillip Schwiftie, Chairman'
H1 CQ � (/u+�«�/�
Cecelia Vasque Clrk of the Board
—4-
0 M GV'CouNTY
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BRINE LINE7 AND OCEAN OUTFALL AGRrEM_NT
THIS AGREETIENT is made and entered into as of this lath
day
of. AUGUST 198.1, by and between the SAN JUAN BASIN
AUTHORITY, a joint exercise of powers authority organized and
existing pursuant to Chapter 5, Division 7 (commencing at
Section 6300) of the Government Code of the State of California
" (hereinafter referred to as "Authority"), and ORANGE COUNTY
WATERWORKS DISTRICT NO. 4, a county waterworks district organized
and existing under Division 16 of the't•:ater Code of the State
of, California (hereinafter referred to as- "Waterworks District").
R E C I T A L S:
1. Authority, Santa Margarita Water District, and
Mission Viejo Company entered into an agreement entitled "Lake
Mission Viejo Facilities and Operation Agreement", dated as
of the 24th day of June, 1977, which provided for the construction
and operation of a Basin BvDess Brine Line. The original brine
line 1s shown on Zxniblt "A", attached hereto and by this
reference made a part hereof,
2. Authority is the owner of that portion of the original
brine .line south o: tale Galivan Pump Station shown on Exhibit
"A", '(Authority's portion of the original brine line is
hereinafter referred to as "Brine Line".)
9. Authority is Presently negotiating with the State of
California to obtain a Clr_an F::ter Grant tp ertend tie Brine
Line from its Present terminus in the San Juan Basin to a
point to connect to the Dana Point -San Juan Capistrano Outfall
ATTACHMENT 3
• 0
(herein "Outfall") in the vicinity of Point A, as shown on
Exhibit "B", attached hereto and by this reference made a
part hereof. When the Brine Line is extended and connected
to the Outfall, Authority will be able to collect approximately
2 MGD of brine water from Oso Creek at a barrier (herein
"Ba_rier") to be constructed by Authority at Point C, as
shown on said Exhibit "B", and approximately 1 MGD of brine
water from the San Juan Basin through Authority's wells
(herein "Wells") located at Point B, as shown on said Exhibit
"B", and to discharge the brine water into the ocean.
4. In order to comply with the regulations of the San
Dieco Regional Board of the State Eater Resources Quality
Control Board, Authority must discharge the brine water at a
point directly offshore.
11, >. Waterworks District owns a 55 -year lease of the
Outfall, with an option to purchase said Outfall_ Waterworks
District has an unused capacity in the outfall exceeding 3
MGD.
G. Authority has a valid NPDES Permit to discharge 3
MGD of brine water through the Outfall into the ocean directly
offshore.
7. Authority desires to connect the Brine Line to the
Outfall for the purpose of discharging the brine water
collected at the Barrier and/or the cells into the ocean.
NOW, THZREFORE, in consideration of the mutual terms,
covenants and conditions herein contained, the parties do
hereby'agree as follows:
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SECTION 1. Upon completion of the Brine Line extension
and connection to the Outfall, Waterworks District hereby
agrees to allow Authority to place up to'2 MGD of brine
water collected at Authority's Barrier at Point C and un to
1 MGD of brine water from Authority's Wells at Point B, as
shown on Exhibit "B", into the Outfall, to be discharged
into the ocean through the Outfall.
It is recognized that is
now, and in the suture may be,.reauired to divert brine
water, as a condition imposed by local, state, or federal
agencies or as a crant condition. Authority is not -allowed
by. this Agreement to place such brine water into the Outfall.
SECTION 2. Authority agrees to pay all costs of connecting
Brine Line to tae Outfall, and shall pay all maintenance and
operation costs of the Brine Line, Barrier, and Wells. For
the purpose of this Agreement, maintenance and operation
costs shall include the repair, replacement or reconstruction
of the Brine Line, Barrier, and pumps, and necessary energy
charges'. It is understood that there is not additional cost
to pump the brine water after it is placed within the Brine
Line, because it will flow by gravity to the Outfall and
into the ocean.
SECTION 3. Authority shall hereinafter be responsible
for maintenance of outfall from the n0 in of connection to
the Brine Line to the mean low tide line and shall hold
Waterworks Dist=ict free and harmless from any loss, damage,
liability, cost or expense that may arise or be caused in
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1
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any way by use, operation or failure of Brine Line, or
Outfall within the said portion of outfall, and shall further
indemnify waterworks District for any such loss, damage,
liability, cost or expense that may arise or be caused in
any way by use, operation or failure of outfall within the
said portion of Outfall.
SECTION 4. Waterworks District hereby, by .the execution
of this Agreement, agrees to allow Authority's brine water
in the amounts and from the locations hereinbefore stipulated,
to be discharged through the Outfall into the ocean for a
period of fifty-five (55) years. The payments by the Authority
to Waterworks District shall be $4,000 per year, paid. annually,
in advance, prior to January 1 of each year, until such time
as Authority uses said outfall. Thereafter, the payments
shall be at the rate of $8,000 per year. Authority shall
make a pro rata payment for the remainder of calendar year
1961. No administrative costs shall be deducted from any
payment.
SECTION 5. The provisions of this Agreennent shall
inure to the benefit of and be binding upon the parties and
their successors and assigns.
11 SECTION 6. All notices, demands and requests which may
be or are required to be given or made by any party to the—
other party shall be in writing, sent by United States
registered mail,
,postage prepaid, addressed as follows.-
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MINUTES OF THE REGULAR MEETING
OF THE BOARD OF DIRECTORS
OF THE
SAN JUAN BASIN, AUTHORITY
October 1, 2003
The Adjourned Meeting of the Board of Directors of the San Juan Basin Authority
was held at 11:00 a.m., Wednesday, October 1, 2003, at its Administrative Offices,
located at 27500 La Paz Road, Laguna Niguel, California. The following Directors or
Alternate Directors were present:
JOHN SCHATZ, Santa Margarita Water District President
DIANE BATHGATE, Capistrano Valley Water District Director
RICHARD DIETMEIER, South Coast Water District Director
Also Present:
DON MARTINSON
FRITZ STRADLING
JOHN THORNTON
AMY AMIRANI
ERIC BAUMAN
MIC14AEL DUNBAR
BOB MOORS
RICK HALE
LESLIE GRAY
rTEMS I AND 11
Administrator
Stradling, Yocca, Carlson & Rauth
Psomas & Associates
Capistrano Valley Water District
Capistrano Valley Water District
South Coast Water District
South Coast Water District
Hale & Company, CPA
Recording Secretary
President John Schatz called the meeting to order at 11 700 a.m. and RICHARD
DIETMEIER led the Pledge of Allegiance to the Flag.
ITEM III ORAL COMMUNICATIONS
President Schatz stated the procedure for members of the public to address the
Board_ Hearing no public comments, President Schatz proceeded to the Consent
Cale)idar.
ITEM IV CONSENT CALENDAR
ITEM IV -A REGULAR MEETING OF JUNE 17, 2003
ATTACHMENT 4
0
ITEM IV -B RATIFICATION OF EXPENDITURES
DISCUSSION
President Schatz directed the Board's attention to the minutes of the Regular
Meeting of lune 17, 2003 and the items listed under Ratification of Expenditures on the
Consent Calendar. Mr. Martinson stated that there is no list of expenditures to review
due to the financial statements being finalized for the year-end- Once they are completed,
they will be forwarded to the Board of Directors for their review and approval. There was
no discussion regarding these items.
ACTION TAKEN:
Thereafter, upon a motion duly made by Director Dietmeier, seconded by Director
Bathgate, the Board of Directors of the San Juan Basin Authority approved the
items under the Consent Calendar.
ITEM V GENERAL MANAGERtS REPORT
ITEM V-A STATUS REPORT ON STATE DEPARTMENT
OF 'WATER RESOURCES GRANT FOR
GROUNDWATER MONITORING PLAN
DISCUSSION:
Mr. Martinson reported on his meeting with officials of the Department of Water
Resources. The progress of the grants for the Groundwater Monitoring and the
Conjunctive Use Study was discussed. These grants are funded by two different sources.
The Groundwater Monitoring grant is 'funded by the General Fund and must be completed
by May 14, 2004. The Conjunctive Use Study is funded by Prop. 13 funds and will be
subject to a longer scheduled time frame that will be determined in cooperation with the
DWR staff. Mr. John rhornton is in receipt of bids for the drilling of the monitoring
wells and distributed a tabulation of the bids to the Board of Directors. Three viable bids
were received from BC' Environmental, Cascade Drilling, and West Hazmat Drilling.
The low bid was received by Cascade Drilling in the amount of $49,200. A discussion
ensued relative to an allowance for a contingency making the total amount $70,000 for
potential extra work, but not to exceed the amount approved by the state for the
individual task, items.
October 1, 2003 Page 2
0
ACTION TAKEN:
Thereafter, upon a motion duly made by Director Dietmeier, and seconded by
Director Bathgate, the allowance for a contingency up to the final amount of
$70,000 was added to the agenda.
Following this motion, another motion was made by Director Dietmeier, seconded
by Director Bathgate, to award the drilling contract to Cascade Drilling. The
motion was unanimously passed.
ITEM V -R STATUS REPORT ON SWRCB GROUNDWATER
STORAGE FEASIBILITY GRANT
DISCUSSION:
Mr. Martinson stated that this project is somewhat linked to the Watershed
Study by the Corps of Engineers. When the grant application was originally made, it was
contemplated that the Authority would work hand-in-hand with the County of Orange and
the Corps and that a federal flood control project with major retention basins located at
the upper portion of the watershed would be proposed. However, the Corps study has
slowed and has not received continued federal funds. Mr. Martinson will keep the Board
of Directors apprised of this project as more detailed concepts are developed.
ACTION 'I AKEN:
No action was required.
ITEM V -C STATUS REPORT ON U.S. ARMY CORPS OF
ENGINEERS SAN JUAN CREEK WATERSHED
MANAGEMENT STUDY
DISCUSSION:
Mr. Martinson referred to Attachment No. 4 of the Agenda, which is a status
report by the Corps dated September 2, 2003.
ACTION TAKEN:
Information only, no action required.
October I, 2003 Page 3
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ITEM V -D PROGRESS REPORT ON THE PHASE I
DESALTER-PRO,TFCT
DISCUSSION:
Ms. Amarini reported that the project is moving forward and distributed photos on
the progress of the project for the Board of Directors' review. Eco Resources. Inc.. is
making satisfactory progress on the project. The project should be ready to operate by
July 2004. Ms. Amarini offered to rake anyone interested on a tour of the project.
Mr. John Thornton stated that Psomas & Associates acting as the Independent
Engineer continues to monitor and review the progress payments.
Mr. Kick Hale of Hale & Company was present and presented his revised
Proposal for a Special Audit due to the bond funds to be paid by PC 4 - Desalter Project.
It will be necessary to include more detailed information in the Audit because of the bond
sale by the Authority. Mr. Hale asked to amend the contract to add $2,500 for additional
time requirements regarding the bond issuance to the original cost proposed of $5,900
making the total estimated cost to be $8,400..
ACTION TAKEN:
Thereafter, upon motion duly made by Director Bathgate, seconded by Director
Dietmeier, the Board of Directors of the San Juan Basin Authority approved the amended
contract for the Special Audit from Hale & Company in the amount of $8,400.
I'T'EM V -E LEASE PAYMENT - DANA POINT OUTFALL
DISCUSSION:
A discussion ensued relative to the annual rent payments made by the
Authority for the old Dana Point Outfall pursuant to the agreements with the City
of San Juan Capistrano. It was decided that these payments are no longer
appropriate and that these agreements shottld be dissolved and the matter should
be referred to the City of San Juan Capistrano and the South Coast Water District
for appropriate action.
Oclu6er 1, 2003 Page 4
• i
ACTION 'TAKEN -
Thereafter, upon motion duty made by Director Dietmeier, seconded by Director Bathgate,
the Board of Directors of the San Juan Basin Authority approved the dissolution of the Dana
Poiot Outfall Lease Agreement and referred further action to the City of San Juan Capistrano
and South Coast Water District.
ITEM VI OTHER MATTERS
DISCUSSION:
No other matters were discussed.
ITEM V11 ADJOURNMENT
There being no further business to come before the Board, with motion duly made and
seconded the meeting was adjourned at 11:55 a.m., to the next Regular Meeting of Tuesday,
: January 13, 2004.
Respectfully submitted,
/ Leslty
ie C. Gray
1,
Recording Secretary
1 DO HEREBY CERTIFY that the foregoing Minutes are
a true and correct copy of the Minutes adopted by the
Board of Directors of the SAN JUAN BASIN AUTHORITY.
13onald J. artinson, Administrator
SAN JUAN BASIN AUTHORTIY
October 1, 2003 Page 5
0
TERMINATION OF THE BRINE LINE AND
OCEAN OUTFALL AGREEMENT
This Agreement is made and entered into as of this 13th day of January, 2004 by and among
the SAN JUAN BASIN AUTHORITY, a joint exercise of powers authority organized and existing to
Chapter 5, Division 7 (commencing at Section 6500) of the Government Code of the State of
California (herein after referred to as "Authority"), the CITY OF SAN JUAN CAPISTRANO, a
municipal corporation (hereinafter referred to as "City").
RECITALS:
1. On the 13"' day of August, 1981, the City, the Dana Point Sanitary District
(hereinafter referred to as "Dana Point") and the Orange County Waterworks District No. 4
(hereinafter referred to as,"Waterworks District") entered into an agreement which provided that the
Dana Point/San Juan Capistrano Ocean Outfall (hereinafter referred to as the "Outfall"), which was
owned by the City and the Dana Point, in the following percentages: City 45.25%, Dana Point
54.75%, would be leased to the Waterworks District for fifty-five (55) years with the City receiving
45.25% of each lease payment and Dana Point receiveing 54.75% of each payment. Subsequent to
that agreement, Dana Point was merged into the South Coast Water District (hereinafter referred to
as "South Coast") and all assets of Dana Point became property of South Coast, thus, South Coast
owns 54.75% of the Outfall.
2. On August 18, 1981, the Authority and the Waterworks District entered into the
Brine Line and Ocean Outfall Agreement (the "Outfall Agreement"). The Waterworks District
became the Capistrano Valley Water District, a subsidiary district of the City and subsequently
merged into and became a part of the City.
DOCSOCU 0178700\22027.0000
ATTACHMENT
0
3. Pursuant to the Outfall Agreement, the Authority entered into the lease of the Outfall
for the purpose of connecting its Brine Line to the Outfall to discharge brine water collected at the
Authority's Barrier project and/or the wells as defined in the Outfall Agreement into the ocean.
4. The Outfall Agreement provides that the Authority pay to the Waterworks District
(now the City) annual payments of $4,000 per year until such time as the Authority uses the Outfall
and thereafter said payments shall be made at the rate of $8,000 per year for a period of fifty-five
years.
5. For a brief period, the Authority attempted to use the Outfall and commenced paying
$8,000 per year pursuant to the Outfall Agreement, however, the Outfall was in such poor condition
that the San Diego Regional Water Quality Control Board prohibited the use of the Outfall to
discharge brine water. Furthermore, the Authority has not been operating the Barrier project to
collect brine to discharge into the Outfall.
6. On October 1, 2003, the members of the Authority which includes the Santa
Margarita Water District, the Moulton Niguel Water District, the City and South Coast determined
that the Authority is not receiving any value from the lease of the Outfall and they unanimously
agreed that the Outfall Agreement should be terminated.
NOW, THEREFORE, in consideration of mutual terms, covenants and conditions herein
contained the parties do hereby agree as follows:
SECTION 1. The Outfall Agreement is terminated as of January 1, 2004. The Authority
shall not be required to make any future lease payments or expenses relating to the Outfall and any
unpaid expenses and any unpaid lease payments are hereby cancelled.
2
DOCSOCV 017870v3\22027.0000
0
SECTION 2. The Authority shall not be responsible for the future or past maintenance of
the Outfall and the City agrees that the Authority has not incurred any cost or expenses that has or
may arise or be caused in any way by the use, operation or failure of the Outfall.
SECTION 3. The provisions of this Agreement shall inure to the benefit and be binding
upon the parties and their successors and assigns.
3
DOCSOC\ 1017870v3\22027.0000
IN WITNESS HEREOF, the parties hereto execute this Agreement as of the date hereby
written above.
SAN JUAN BASIN AUTHORITY
Z& By: , Z z
Presi ent
ATTEST:
Secretary
CITY OF SAN JUAN CAPISTRANO
IM
ATTEST:
Margaret R. Monahan, City Clerk
4
DOCS0010178700MG27.0000
Joe Soto, Mayor
9 0
AGREEMENT
(OCEAN OUTFALL LINE)
This Agreement is made this day of 2004, by and
between the City of San Juan Capistrano (hereinafter "City"), and the South
Coast Water District (hereinafter "SCWD").
RECITALS:
Whereas, City and SCWD are the co-owners of a waste water outfall line
which is located in Dana Point, California, known as the Dana-Point—San Juan
Capistrano Ocean Outfall (hereinafter "Outfall"), and
Whereas, the Outfall is owned by City and SCWD in the following
percentages: City ---45.25%; SCWD---54.75%, and
Whereas, City, SCWD, and the Orange County Waterworks District No. 4
("District No. 4") entered into an agreement, dated August 13, 1981, providing for
District 4's acquisition of lease and option to purchase rights to the Outfall, and
Whereas, Waterworks District No. 4 reorganized as the Capistrano Valley
Water District ("CVWD") on or about 1965, and
Whereas, the Outfall has not been utilized for any purpose by any
governmental entity for many years, and
Whereas, City merged with the CVWD in 2003 such that CVWD no longer
exists, and
Whereas, City has assumed the assets and liabilities of the CVWD, and
Whereas, City and SCWD find and determine that it is appropriate to
terminate the lease and option to purchase provisions set forth in the August 13,
1981 agreement,
NOW, THEREFORE, City and SCWD hereby mutually resolve as follows:
Section 1. Reveal of Agreement.
The August 13, 1981 "Agreement for Sale and Lease of Ocean Outfall
Line" is hereby repealed in its entirety. All obligations of the former District No. 4,
as assumed by City through governmental merger, have been duly satisfied and
discharged.
ATTACHMENT 6
0 0
Section 2. Status of Outfall Line.
City and SCWD acknowledge that the Dana Point --San Juan Capistrano
Ocean Outfall has been and continues to be in a state of disuse. To the extent
that future maintenance obligations may arise with respect to the Outfall, City and
SCWD shall be responsible for such obligations on a pro -rata basis equal to each
respective ownership interest; that is, City 45.25% and SCWD 54.75%.
Section 3. Indemnity.
(a) City shall indemnify, save, and defend SCWD its elected and
appointed officials, and employees harmless from and against any and
all claims, suits, actions or proceedings of any kind or nature, for
damages to property or injuries to or death of any persons arising out
City's ownership interests in the subject Outfall facility described
herein.
(b) SCWD shall indemnify, save, and defend City, its elected and
appointed officials, and employees harmless from and against any and
all claims, suits, actions or proceedings of an kind or nature, for
damages to property or injuries to or death of any persons arising out
of SCWD's ownership interests in the subject Outfall facility described
herein.
Section 4. Notices.
Any notice given under this Agreement may be provided by first
class mail, postage prepaid, as follows:
To City:
Public Works Director
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, Ca. 92675
To SCWD:
Michael Dunbar, District Manager
South Coast Water District
31592 West Street
Laguna Beach, CA 92651
0 0
Section 6. Entire Agreement.
This Agreement contains the entire Agreement of the parties hereto
with respect to the matters covered hereby, and no other previous
agreement, statement or promise made by any party hereto which is not
contained herein shall be binding or valid.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the day and year first above written.
City of San Juan Capistrano
Joe Soto, Mayor
South Coast Water District
Approved as to Form:
By�
District Counsel /
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
(949) 493.1053 FAX
wwwsanjuancapistrano. org
May 11, 2004
Michael Dunbar, District Manager
South Coast Water District
31592 West Street
Laguna Beach, CA 92651
Dear Mr. Dunbar:
Jwau
ii� IP[B1AIVBRA66
FSIAILISXFG I IBBI
1776 "
MEMBERS OF THE CITY COUNCIL
SAM ALLEVATO
DIANE L. SATHGATE
WYATT HART
JOE SOTO
DAVID M. SWEROUN
On May 4, 2004, the City Council of San Juan Capistrano approved the Ocean Outfall
Line Agreement between the City and the South Coast Water District. An original,
executed agreement is enclosed for your records.
If you have any question concerning the agreement, please contract the Project
Manager, Joe Mankawich, Associate Engineer (949) 487-4313.
Yours truly,
Me on an, CMC
Cit Clerk
enclosed: Agreement
cc: Joe Mankawich, Associate Engineer
Amy Amirani, Public Works Director
San Juan Capistrano: Preserving the Past to Enhance the Future
32400 PASEO AOELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
(949) 493.1053 PAX
www.sanjuancapistrano.org
May 6, 2004
0
mg
I AEOA IOIAIEP
EST IWAR 11 1161
1776
NOTIFICATION OF ACTION BY THE
CITY COUNCIL OF SAN JUAN CAPISTRANO
MEMBERS OF THE CITY COUNCIL
SAM ALLEVATO
DIANE L. BATHGATE
WYATT HART
JOE SOTO
DAVID M. SWERDLIN
On May 4, 2004 the City Council of San Juan Capistrano met regarding:
"Consideration of Approval of Two Agreements Relating to the Dana Point Ocean
Outfall (San Juan Authority) (South Coast Water District)" Item No. D7
The following action was taken at the meeting: Termination of the Brine Line and
Ocean Outfall agreement, with the San Juan Basin Authority approved, repealing
an August 18, 1981 agreement between the City of San Juan Capistrano and San
Juan Basin Authority providing for terms and conditions affecting the Dana Point
Ocean outfall; and the Ocean Outfall Line Agreement with South Coast Water
District approved, repealing an August 13, 1981 agreement between the City of
San Juan Capistrano and South Coast Water District concerning the Dana Point
Ocean Outfall.
If you have any questions regarding this action, please contact Joe Mankawich,
Associate Engineer at 487-4313 for more detailed information.
Thank you,
Mitzi O
Deputy City Clerk
Cc: South Coast Water District; San Juan Basin Authority; Amy Amirani, Public
Works Director; Joe Mankawich, Associate Engineer
San Juan (Capistrano: Preserving the Past to Enhance the Future
FA
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
(949) 493.1053 FAX
www.sanjuancapistrano.org
9
MEMBERS OF THE CITY COUNCIL
NOTIFICATION OF MEETIN -UF POTENTIAL INTEREST
OF THE SAN JUAN CAPISTRANO CITY COUNCIL
SAM ALLEVATO
DIANE L. BATHGATE
WYATT HART
JOE SOTO
DAVID M. SWERDUN
The City Council of San Juan Capistrano will meet at 7:00 p.m. on May 4, 2004, in the
City Council Chamber in City Hall, to consider: "Consideration of Approval of Two
Agreements Relating to the Dana Point Ocean Outfall (San Juan Authority) (South
Coast Water District)" - Item No. D7
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 Board and/or by attending the meeting and
speaking to the Council during the public meeting.
Correspondence related to this item must be received at City Hall by 5:00 p.m. on
Monday, May 3, 2004 to allow time for the Council to consider its content.
If you would like to speak at the meeting, please complete a blue `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 Joe Mankawich,
Associate Engineer. You may contact that staff member at (949) 487-4313 with any
questions.
The Agenda, including agenda reports, is available to you on our web site:
www.sanivancapistrano.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:
council-aaendase-sanivancapistrano.org.
Thank you for your interest,
Meg Monahan, CMC
City Clerk
cc: South Coast Water District; San Juan Basin Authority; Amy Amirani, Public
Works Director; Joe Mankawich, Associate Engineer
Received staff report
San Juan Capistrano: Preserving the Past to Enhance the Future