Loading...
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 The August 13, 1981 "Agreement for Sale and Lease of Ocean Outfall Line" is hereby repealed in its entirety.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. -2- 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 g_ 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: -2- 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 -3- 1 m 0 0 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.- -4- MISSION VI JO i"`�� �`__'J - ,j'.. «. •.�;•,-''•%,. �' :-;�� 'fit, �' =` _ • �' "_�= PLANNED C0,74rIUNITY BOUNDARY } t _�f, � (-Jr '"'`' �I. S�_ f(r.�i �V�` _:1� �` y:it• _ '�I.•. ".•�� 'yL) !� �i•�f, 2• }' ;� I `� tia •^' r� 4[� .:. ��J�-:4i �'_ � �':.ip•n�` ~C _ '� j'=� LAKE MISSION VIEJO ,ter':."�:•�� r.'1' 6 ,' ''i i.''•�- -ttl--i �..i :.s"'` •� "r1l , i �l�(•r:/ - :.a .,t : _ ry v.•rlr, ti_iT I��}-• .i .+. 7 �t'�. �-':.%_T•'� ��.. \.--,y'^e• ��.' �.. �.�,i JJl''4 (1/�i �r`�`��� i�i: y �, .` :. �Z,�7•'✓>(` . .i.f�� �% `•, ��1'_J� `'�' F' - � , r i� � ) —6th%A��i1<�� .l i:`J -.: � 'kJ , (.!'.t'/:-nom allty/, ■� �: :�[� _ Tit .I .�- `i.} JC`�"�i :' ;r t_.. •'� � � � I.• .� .-'1,/,% ..�:. v. la.V._.. .fir. J .n � .. k `Y �'1'Y SANTA tvit RGARITA WATER DISTRICT } :.; �F ; . , «•• _ ice. _ J. '= / ;•!'.:-r; �i Y.• :^- .. C 1'/i ''�1 ,e, RESPONSIBILITY �• !r :,.. �i r=' „1; - ? -• •j•i •' 1.:._ ...: it � { 'L- ,' � a'Y ` :%iiri'^ rf.�`ii•v d �''^i;••. .•1 V.' •,'Ji`-:?;: j1 ..•f • w:•..�: - 1 - /•�%L`iL'.'L7 •?f_./a a n a a Li-N, PAZ ROAD PUtt? S fAT10+a Ck '`�. ��i' jP �.�-' --.-•'�„"'.• -"_• GALIYAN PWAP STATION 'l•- / '\..1. J_ 1. if l �y ... , 'jr, • -',I/ NEW WELLS I' T YP I. �r f) � ,. fl�k_ .�•, :i'1� /.'. II, �/.'..' 1_. Ck� T• •%`.fes el T.f iiFjji'1., 12- i`7. Mi '3v �_J✓. _''�._� _— �. '�N��^—"•ti'•/i. n.-.._i-.,I O+n. 1/I •6,,•_.- i'�y - •i':, -!•f•.i t` . - BbY `W,11 J 1� ✓.iii 1 'SAN JUAN- l : :'v�R.ni�ULEN S'.tLL r !'t $llSlta I�UTi-10.-^iITYI :i.•r: 1..>�':. —. --'-� ;_e,.,,,,�, .,. � - 0 .:�" �^ 10 1:7N: �.,j -�:,. IC1i:OjiilTA WELL: 1FOOTii[LL tPUA9P STATIOM �''I l_',ICEOUT�`i: .,.� �• 1;�,r:;�,`.-� CONNECTIO f :.�- 1 .< � ', tib)., f.�. ...5 - • _ .•:.: �:. ' r a'.=f i � ( . PUi:1? STATIOi,1�' ti -SAM JUA : F.:, :/•J I t\`3`•.A i-��- -'� �., �,I �1 +moi ;CREEK BASIN � ;��� o feet _ 7500 �: -.�`1 . •:. ice••. - ' ;r _ :�'"'.-- •., r,�•- f- �'-• scalrA i ocCAN OUTFALL 2 f1 0 r i AL IVA(l I 1 - t I J ps-PnIN1' "c" t I / ��S—r3rziuE L(N8 s a»s?oIn(r "r3" r Fn(NT "/gym L6XN11317` itS" PUMP STATIOtl 4 FEET (Too SCAl6 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 • 0 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