The URL can be used to link to this page

1973-0628_SERRA_Addendum 1 to Amd 2 ADDENDUM 1 TO AMENDMENT NO. 2 AGREEMENT FOR ACQUISITION, USE, OPERATION, MAINTENANCE AND EXPANSION OF SEWAGE TREATMENT PLANT OF CITY OF SAN JUAN CAPISTRANO BY SOUTH EAST REGIONAL RECLAMATION AUTHORITY FOR AND ON BEHALF OF PROJECT COMMITTEE NO. 2 (THE "PC 2 AGREEMENT") (Advanced Wastewater Treatment Project: Project Committee No. 2/AWT) This ADDENDUM 1 to Amendment No. 2 to the PC 2 Agreement (hereinafter the "PC 2/AWT Agreement') is made effective this _ day of August, 2006 (the "Effective Date"), by and among South Orange County Wastewater Authority ("SOCWA") (the successor in-interest to South East Regional Reclamation Authority (SERRA)), a joint power agency created by that certain joint powers agreement entitled "Joint Exercise of Powers Agreement Creating South Orange County Wastewater Authority, Orange County, California (SOCWA)" dated July 1, 2001 (the "Joint Powers Agreement'), and pursuant to Section 6500 and following of the Government Code of the State of California, for and on behalf of its Project Committee No. 2 ("PC 2"), and the following member agencies of SOCWA and members of PC 2: (a) City of San Juan Capistrano ("SJC"); (b) South Coast Water District ("SCWD"); (c) Moulton Niguel Water District ("MNWD"); and (d) Santa Margarita Water District ("SMWD"). RECITALS A. The PC 2 members entered into the PC2/AWT Agreement to provide for the design, construction and operation of advanced wastewater (tertiary) treatment facilities (the "AWT Project') at the Jay B. Latham Plant (formerly referred to as the "SERRA Plant', to be referred to as the "Plant' herein) site for the diversion of up to 11.0 mgd of S® secondary effluent produced at the Plant from discharge to the Pacific Ocean and treatment of such effluent for beneficial reuse as recycled water. The PC 2 Members who will fund, and thereafter have capacity interests in, the AWT Project are SJC, 0 0 SCWD and MNWD (the "PC 2/AWT Members"). The PC 2/AWT Members desire to have SOCWA resume completion of the preliminary design and environmental review of the AWT Project, to be based upon the revised project phasing and participation as set forth in this Addendum 1. B. The AWT Project will be designed and constructed in one phase with a design capacity of 9.0 mgd, in lieu of the three phases and a design capacity of 11.0 mgd originally contemplated in the PC2/AWT Agreement. SCWD and MNWD plan to own and use less capacity in the AWT Project then originally set forth in the PC2/AWT Agreement, and SJC plans to own and use more capacity in the AWT Project then originally set forth in the PC 2/AWT Agreement. PC 2/AWT Member's currently contemplated capacities in the AWT Project are as follows: SCWD- 0.5 mgd; MNWD- 1.5 mgd; and, SJC- 7.0 mgd, for a total of 9.0 mgd in the AWT Project. C. Based on the '[SERRA]Jay B. Latham Plant Wastewater Capacity Allocations' set forth in the PC 2 Agreement, SCWD and MNWD will have excess secondary treated effluent available even after their participation in the AWT Project at the revised AWT capacity interests set forth in this Addendum 1, which otherwise will be discharged to the Pacific Ocean. SMWD will not participate in the AWT Project and the secondary treated effluent related to SMWD's wastewater capacity allocation and wastewater flows actually sent to the Plant by SMWD are discharged to the Pacific Ocean. Pursuant to this Addendum 1, SJC desires to secure assurances from MNWD,SCWD and SMWD that SJC may use as long as it is available a quantity of secondary treated effluent generated at the Plant sufficient to support the projected recycled water production resulting from SJC's capacity interest(s) in the AWT Project, subject to the forty year term on such assurances provided for hereafter. D. The PC 2/AWT Members ( SJC, SCWD and MNWD) have reviewed alternative treatment processes for the AWT Project. In order to complete the Page -2- BA W&G/PG/kp/78600 17005 N 2.22-611-06 Draft 1 environmental review and the preliminary design for the AWT Project in a timely fashion so as to qualify for potential California State Proposition 50 grant funding in the magnitude of$5,000,000, the PC 2 Members desire to execute this Addendum 1 for the following purposes: (1) revise the project phasing and projected capacities of the PC 2/AWT Members previously set forth in PC 2/AWT Agreement; (2) provide for MNWD's ,and SCWD's consent to use of the available secondary treated effluent not otherwise needed by MNWD and SCWD to fully utilize their own respective capacities in the AWT Project, as well as SMWD's consent, to allow use of the available effluent by SJC in conjunction with its capacity in the AWT Project; and, (3) authorize the preliminary design and environmental review of the AWT Project in a timely manner so as to qualify for potential Proposition 50 grant funds, if and when such funds are available, and to otherwise authorize the funding of such design and environmental services. AGREEMENT The parties agree to revise the PC 2/AWT Agreement, including those certain sections of thereof as noted, as follows: 1. Revised Section 1 B "Project Phases". Section 1 B, Table 2, which sets forth the proposed capacities of each PC 2/AWT Member in the project facilities, is amended to be as follows: AWT PROJECT CAPACITIES (PROJECTED) Table 2 PC 2/AWT AWT Project Capacity Share Member Capacity m d SJC 7 77.78% MNWD 1.5 16.67% SCWD 0.5 5.56% Total 9.0 100.0% 2. Environmental Review Preliminary Design. The PC 2/AWT Members agree Page -3- BA W&G/PG/kp/78800 17005 N2.22-6-11-06 Drafll • • SOCWA may proceed with the environmental review and the preliminary design of the AWT Project as revised by the terms of this Addendum 1, subject to the members' approval of the environmental services and design services contract(s) for such work. The PC 2/AWT Members agree to deposit with SOCWA the budgeted amounts specified in Exhibit D (which Exhibit D will supercede the costs previously allocated to the members for preliminary design in Exhibit C to the PC 2/AWT Agreement) for the preliminary design and environmental review services, and to further deposit all other associated costs for SOCWA's legal review of such matters, including preparation of this Addendum 1, within sixty (60) calendar days after the Effective Date of this Addendum 1. 3. Revised Section 2B. Section 213, "Funding Opportunities; Withdrawal", is amended as follows: "Section 2B. Funding Opportunities; Withdrawal. Upon request by any PC 2/AWT Member, and at any such member's individual expense, SOCWA will pursue funding opportunities from available state or federal sources/programs for the AWT Project at the earliest possible date. It is agreed by the parties to this Amendment No. 2 that, subsequent to the completion of the preliminary design and environmental review, but prior to the award of the final design contract for the AWT Project, any PC 2/AWT Member may withdraw from participation in the AWT Project. In the case of a withdrawal, all further obligations of the withdrawing member shall cease as of the date of such withdrawal, except obligations of that member for expenses already incurred pursuant to this Amendment No. 2. Subject to the further approvals by the PC 2/AWT Members prior to Final Design and construction, the AWT Project shall be constructed and thereafter owned, operated, and maintained by SOCWA, through, on behalf of, and for the use and benefit of, the remaining PC 2/AWT Members." Page -4- BA W&G/PG/kP/78800 1700 N 2.22-6-11-06 Draft l 0 0 5. Effluent Surplus. SMWD, MNWD and SCWD each agree that SJC may use effluent that is a byproduct of wastewater flows from, respectively, SMWD, MNWD and SCWD to the Plant, but, in the case of MNWD and SCWD, only to the extent that such effluent exceeds the levels required for, respectively, MNWD's and SCWD's AWT Project capacities (collectively hereinafter," Surplus Effluent"). SMWD, MNWD, SCWD each will allow the use of its Surplus Effluent (hereinafter the "SMWD Effluent", the "MNWD Surplus Effluent" and the "SCWD Surplus Effluent by SJC for such specific purpose, subject to the following conditions: (a) SJC's use of the Surplus Effluent will be deemed used on a proportionate basis as to the SMWD Surplus Effluent, the MNWD Surplus Effluent and the SCWD Surplus Effluent. Notwithstanding any other term set forth herein, SJC agrees that SMWD, MNWD and SCWD make no promises, assurances or guarantees that they will individually or collectively send sufficient wastewater flows to the Plant so that the Surplus Effluent will continue to be available, or available in any specific quantity, for SJC's use in connection with the AWT Project as provided in Amendment No. 2, as supplemented by this Addendum 1. (b) SJC's use of the Surplus Effluent is restricted for use by SJC in connection with SJC's 7.0 mgd capacity in the AWT Project, and for no other purpose unless otherwise agreed to in writing by SMWD,MNWD, SCWD and SJC, and approved by Project Committee No. 2, if required. (c) In recognition of SJC's necessity for the Surplus Effluent to fully utilize its AWT Project capacity and therefore benefit from investment in its recycled water program, SMWD, MNWD and SCWD each agree to enter into timely discussions with SJC on a means of avoiding any permanent reduction in the available Surplus Effluent should SMWD, MNWD or SCWD decide in the future to develop any facilities which will Page -5- 6A W&G/PG/kP/78800 17005 N 2 22-6-11-06 Draft I 0 0 reduce the amount of wastewater conveyed to the Plant and therefore impact the available Surplus Effluent necessary for SJC to utilize its capacity in the AWT Project. (d) Notwithstanding any other term set forth in this Addendum 1, the consent given by SMWD, SCWD and MNWD to SJC's use of the Surplus Effluent, including the requirement set forth in subsection (d) of this Section 5, will terminate on a date forty (40) years from the Effective Date, unless otherwise agreed to in writing by the parties hereto. Upon expiration of such consent, SJC shall be limited to the quantity of effluent generated at the Plant resulting from wastewater flows conveyed to the Plant by SJC, unless or until otherwise agreed by the parties. 6. Substitution of SOCWA. All references to "SERRA" set forth in the PC 2/AWT Agreement are deemed to be references to SOCWA, as SERRA's successor- in-interest. 7. Delete CGvL Report The parties agree that the CGvL Report will not be incorporated as Attachment 1 in the PC 2/AWT Agreement. 8. Recitals/Exhibits. The parties each represent and agree the Recitals are true and correct. The Recitals are incorporated into this Addendum 1. Exhibit D is attached and incorporated into this Addendum 1. 9. Effect of Addendum 1 . Except as modified herein, all other terms and conditions of the PC 2 Agreement, including the PC 2/AWT Agreement, shall remain in full force and effect. In the event of any conflict or inconsistency between Amendment No.2 , the terms of this Addendum 1 shall control. The terms "PC 2 Agreement" and "PC 2/AWT Agreement" as used in such documents shall include this Addendum 1. 10. Counterparts. This Addendum 1 may be executed in counterparts, each of Page -6- BA W kG/PG/kp/78800 17005 N 2.22-6-11-06 Draft I • • which shall constitute an original and which collectively shall constitute one instrument. THIS ADDENDUM 1 is entered into by each of the parties as of the Effective Date above. SOUTH ORANGE COUNTY WASTEWATER AUTHORITY ON BEHALF OF PROJECT COMMITTEE NO. 2 By Chairman By Secretary APPROVED AS TO FORM: BOWIE, ARNESON, WILES & GIANNONE Legal Counsel - SOCWA By Patricia B. Giannone Page -7- BA W&G/PG/kP/78800 17005 N2.22-6-11-06 Draft PC2/AWT MEMBERS: CITY=OFN CAPI RANBy: r David M. Swerdlin, Mayor 6�NAreot�.,�46nah�an, Clerk APPROVED A TO FORM: John R. ha , City Attorney MOULTON NIGUEL WATER DISTRICT By President By Secretary SOUTH COAST WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary PC 2 MEMBER: SANTA MARGARITA WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary Page -8- BA W&G/PG/kp/78800 17005 N 2.22-6-11-06 Draft I EXHIBIT D PC 2/AWT Members Environmental and Preliminary Design Services Budget Allocations PC2/AWT Capacity Capacity Share of Share of Member (mgd) Share PDR Costs CEQA Costs Total Costs SCWD 0.5 5.56% $4,722 $3,611 $8,333.00 MNWD 1.5 16.67% $14,167 $10,833 $25,000.00 SJC 7.0 77.78% $66,111 $50,556 $116,667.00 Total 9.0 100.00% $85,000 $65,000 $150,000.00 Page -9- IBA W&G/PG/kp/78800 17005 N 222-6-11-06 Draft I AMENDMENT NO. 2 AGREEMENT FOR ACQUISITION, USE, OPERATION, MAINTENANCE AND EXPANSION OF SEWAGE TREATMENT PLANT OF CITY OF SAN JUAN CAPISTRANO BY SOUTH EAST REGIONAL RECLAMATION AUTHORITY FOR AND ON BEHALF OF PROJECT COMMITTEE NO. 2 (THE "PC 2 AGREEMENT") (Advanced Wastewater Treatment Project: Project Committee No. 2/AWT) This Amendment No. 2 to the PC 2 Agreement is made effective this 29th day of June 2000 (the "Execution Date"), by and between the SOUTHEAST REGIONAL RECLAMATION AUTHORITY ("SERRA"), a joint powers agency created by that certain joint powers agreement entitled "Joint Exercise of Powers Agreement Creating South East Regional Reclamation Authority, Orange County, California(SERRA)" dated March 9, 1970 (the "Joint Powers Agreement"), and pursuant to Section 6500 and following of the Government Code of the State of California for and on behalf of its Project Committee No. 2, and the following entities: (a) City of San Juan Capistrano ("SJC"); (b) South Coast Water District ("SCWD"); (c) Santa Margarita Water District ("SMWD"), and (d) Moulton Niguel Water District ("MNWD"). The foregoing entities are collectively in some instances referred to as the "PC 2 Members", which term is also defined to include all predecessors-in-interest to the individual PC 2 Members, as applicable, or individually as "party" and collectively or in combination as "parties". The parties are member agencies of SERRA, Project Committee No. 2 and signatories to the Joint Powers Agreement. The term"PC 2 Agreement" includes Amendment No. 1 thereto, executed on May 18, 2000. � ,^® RECITALS "•! A. SERRA is pursuing in the most beneficial economical and environmentally compatible manner a regional program for wastewater collection, treatment, reclamation, reuse, HAW&G/PBG,&e/65769.3 17005 N 2.22-07/26/00 Final:Execution disposal, and management, including but not limited to, those facilities known as the SERRA"Jay B. Latham Regional Treatment Plant (the "SERRA Plant")", which facilities are depicted in Exhibit A to this Amendment No. 2. Project Committee No. 2 was previously created for the purpose of constructing and operating the SERRA Plant, all in accordance with the PC 2 Agreement. B. SERRA and the PC 2 Members executed the PC 2 Agreement on June 28, 1973, to provide for SERRA's acquisition of the SERRA Plant from SJC and the Dana Point Sanitary District (DPSD), SCWD's predecessor-in-interest. The PC 2 Agreement additionally provided for the expansion of the liquids treatment capacity in the SERRA Plant from 6.0 million gallons per day (mgd) to 9.0 mgd. The PC 2 Agreement also set forth the PC 2 Members' operation and maintenance expense obligations for the SERRA Plant. C. SERRA, SMWD, DPSD and MNWD entered into the"Agreement For Construction and Capacity Ownership of Additional Water Reclamation Facilities For the South East Regional Reclamation Authority For and On Behalf of Project Committee No. 7" on July 13, 1978, and the contemporaneous"Addendum to Agreement For Construction and Capacity Ownership of Additional Water Reclamation Facilities For the South East Regional Reclamation Authority For and on Behalf of Project Committee No. 7," also dated July 13, 1978, to expand the liquids treatment capacity in the SERRA Plant to 13.0 mgd, and to add additional sludge thickening capacity for and on behalf of such PC 2 Members. D. SERRA and the PC 2 Members entered into the "Agreement for Design, Construction, Use, Operation and Maintenance of Solids Handling and Cogeneration Facilities at the J.B. Latham Regional Wastewater Treatment Plant for and on Behalf by South East Regional Reclamation Authority for and on Behalf of Project Committee No. 16", dated November 10, 1982, for the purpose of designing, constructing, operating and maintaining solids handling and cogeneration facilities of the SERRA Plant. E. SERRA and the PC 2 Members entered into an agreement entitled "Agreement Re Project Committee Nos. 2, 7 and 7-A of South East Regional Reclamation Authority Relative to BAV2&G/PBG/ke/65769.3 17005 N 2.22-07/26/00 Final:Execution -2- Verification of Liquid Treatment and Solids Handling Capacity at the Jay B. Latham Regional Wastewater Treatment Plant", dated November 8, 1984 (the "1984 Agreement"). The 1984 Agreement set forth the nominal liquids treatment capacity of 13.0 mgd and the nominal solids handling capacity of 18.5 mgd of the SERRA Plant, and the allocation of such capacities among the PC 2 Members for purposes of ownership and cost responsibility for operation, including capital repair and improvement projects. The 1984 Agreement also addressed the `perfection' of the solids handling capacity and the associated perfection costs and allocation. F. The PC 2 Members thereafter entered into several transactions for the assignment and transfer, or lease, of liquids and/or solids treatment capacity between various members. G. By execution of Amendment No. 1 to the PC 2 Agreement on May 18, 1998, and the completion of required conditions precedent set forth in such amendment, SCWD's predecessor-in-interest, Capistrano Beach Water District (CBWD) entered into agreements with certain other PC 2 Members for CBWD to take assignment of, in the aggregate, 1.5 mgd of liquids treatment capacity and 1.5 mgd of solids handling capacity in the SERRA Plant (the"1998 Capacity Transfers"). H. Amendment No. 1 also set forth the allocations of the liquids treatment capacity and solids handling capacity of the SERRA Plant among the parties to reflect the prior capacity transfers, including the 1998 Capacity Transfers, and by its terms verified, resolved, compromised and fully settled all issues pertaining to the liquids treatment and solids handling capacity of the SERRA Plant and all cost allocations of such capacities, and also established the current allocations of liquids and solids capacities among the PC 2 Members, which is set forth below in Table 1. BAW&GfPBG/ka/65769.3 17005 N 2.22-07/26/00 Final:Execution -3- SERRA PLANT WASTEWATER CAPACITY ALLOCATIONS [1kRL Member Liquid Capacity Percentage Solids Handling Percentage (mgd)* Capacity (mgd)* SJC 4.00 30.77 5.55 30.00 SMWD 2.25 17.31 5.25 28.38 MNWD 3.00 23.08 4.00 21.62 SCWD 3.75 28.84 3.70 20.00 TOTAL 13.0 100.00 18.5 100.00 * - Average dry weather flow rate, million gallons per day. I. The PC 2 Members, exclusive of SMWD, are proposing the design and construction of advanced wastewater(tertiary) treatment facilities (the"AWT Project") at the SERRA Plant site, currently anticipated to be accomplished in three phases. Subject to completion of a preliminary design report for the AWT Project entitled "Advanced Water Treatment Facilities for the SERRA Plant" ("PDR"), the PC 2/AWT Members desire to proceed with the final design and construction of proposed Phase 1 of the AWT Project. Upon completion and review by Project Committee No. 2, the PDR will be summarized in Attachment 1 to this Amendment No. 2 and incorporated herein. SERRA and the PC 2 Members desire to permit the final design and construction, as well as the operation and maintenance of, the AWT Project, subject to the terms and conditions of this Amendment No. 2. J. This Amendment No. 2 to the PC 2 Agreement is being entered into to provide for the design and construction of the AWT Project at the SERRA Plant. The PC 2 Members who will fund and thereafter have capacity interests in the AWT Project upon completion if as planned are SJC, SCWD and MNWD. SJC is participating in the AWT Project in order to assist its subsidiary water district, Capistrano Valley Water District (CVWD), with the supply of recycled water for CVWD's recycled water distribution facilities for provision to CVWD's customers. Pursuant to Orange County Local Agency Formation Commission (LAFCO)Reorganization BAW&G/PBG/ke/65769.3 17005 N 122-07/26/00 Final:Execution -4- R096-15, SJC will formally merge with CVWD upon the completion of certain terms and conditions under LAFCO Resolution No. R096-15. SERRA will own and operate the AWT Project upon completion, on behalf of such participating PC 2 Members. SMWD has elected not to participate in the AWT Project. The AWT Project participants will hereafter be referred to as "Project Committee No. 2/AWT" (or "PC 2/AWT"), or the "PC 2/AWT Members". NOW, THEREFORE, the parties, in consideration of the mutual covenants herein, agree as follows: AGREEMENT Section IA. Conceptual Project Approval. Subject to the terms and conditions of this Amendment No. 2, Project Committee No. 2 hereby conceptually approves the AWT Project as described herein. The PDR for the AWT Project is subject to the PC 2/AWT Members review in accordance with SERRA's procedures, prior to award of a contract for the final design of any phase of the AWT Project. Project Committee No. 2 further approves the terms for construction, and operation and maintenance of the AWT Project on the SERRA Plant site in the manner herein described. A schematic of the AWT Project depicting the planned facility components will be presented to Project Committee No. 2 upon completion thereof, to be set forth in Exhibit B to this Amendment No. 2 thereafter, by addendum. The PC 2/AWT Members acknowledge and agree that due to the preliminary stage of the AWT Project as of the date of this Amendment No. 2, the PC 2/AWT Members will be required to approve the construction of the phases of the AWT Project by way of addenda to this Amendment No. 2, such addenda to finalize cost sharing and capacity allocations among the PC 2/AWT Members. Section 113. Project Phases. In addition to the anticipated Phase 1 capacities set forth in Table 2 below, the PC 2/AWT Members also anticipate the possible future design and construction of Phase 2 and Phase 3 of the AWT Project. The capacities of each PC 2/AWT Member in the phase or facilities may be as set forth in Table 2 below: BAW&G/PBG/ke/65769.3 17003 N2.22-07/26/00 Final:Execution -5- AWT PROJECT CAPACITIES (PROJECTED) Member Phase 1, Phase 2, Phase 3, Total AWT Project AWT Project AWT Project Capacities Capacity (mgd) Capacity Capacity SJC 2.0 2.5 .75 5.25 MNWD* 0 2.5 2.5 5.0 SCWD .75 -0- -0- .75 TOTAL 2.75mgd 5.0 3.25 11.0 * -MNWD to fund a portion of Phase I in order to reserve capacity opportunity in future phases. This Amendment No. 2 does not obligate the parties for any costs or other conditions relative to the final design or construction of Phase 1, or the possible future Phases 2 or 3, and SERRA shall initiate no actions in connection with final design or construction of any phase of the AWT Project absent approvals by the PC 2/AWT Members and appropriate addenda to this Amendment No. 2 setting forth specific terms and conditions. Section 2A. Design and Construction of AWT Project - Phase 1. SERRA agrees, subject to the receipt of the funds required to be deposited by each PC 2/AWT Member, that upon the execution of this Amendment No. 2, it will proceed with(1) the preparation and completion of the PDR (2) environmental impact assessments, and (3) acquisition of permits and rights-of-way (if any) relative to the AWT Project. The PC 2/AWT Members agree to deposit with SERRA the budgeted amounts specified in Exhibit C for the PDR costs and other associated costs as set forth therein for CEQA compliance and legal review, including preparation of this Amendment No. 2, within thirty (30) calendar days after the execution of this Amendment No. 2. In addition to the amounts shown in Exhibit C, and subject to each PC 2/AWT Member's continued participation in Phase 1 of the AWT Project as discussed in Section 2B below, each BAW&G/PBG/ke/65769.3 17005 N 2.22-07/26/00 Final:Execution -6- PC 2/AWT Member agrees to deposit within ten (10) calendar days after SERRA's receipt of bids (or proposals, as applicable) its' proportionate share of the budgeted costs of the final design and construction of Phase 1 of the AWT Project, based on an allocation to be depicted in an addendum to this Amendment No. 2. Section 2A.1. Participation by MNWD. MNWD is participating in the PDR and anticipates limited participation in the final design and construction costs of the Phase 1 facilities in order to reserve future capacity opportunities in the Phase 2 and Phase 3 facilities. In exchange for its participation in the PDR costs, MNWD has the right to participate in future phases, with a credit for payment to the Phase 1 costs. MNWD will not acquire capacity in Phase 1 of the AWT Project. The parties recognize that MNWD is participating in the preliminary design (and if approved, final design and construction) of the AWT Project facilities in only a limited capacity in order to assure itself of future opportunities for capacity interests in Phase 2 and Phase 3 of the project, and will not, at the completion of Phase 1 construction, acquire any recycled water capacity. In the event that the use of the Phase 2 or Phase 3 AWT Project capacity requires the use of facilities for which MNWD did not participate in the initial design and construction, then MNWD shall further pay to SERRA its share of such facilities costs. Section 2B. Funding Opportunities; Withdrawal. Upon request by any PC 2/AWT Member, and at any such member's individual expense, SERRA will pursue funding opportunities from available state or federal sources/programs for the AWT Project at the earliest possible date. It is agreed by the parties to this Amendment No. 2 that, subsequent to the completion of the PDR, but prior to the award of a final design contract for Phase 1 of the AWT Project, any PC 2/AWT Member may withdraw from participation in the AWT Project. In the case of a withdrawal, all further obligations of the withdrawing member shall cease as of the date of such withdrawal, except obligations of that member for expenses already incurred pursuant to this Amendment No. 2. Subject to the further approvals by the PC 2/AWT Members prior to final design and construction, Phase 1 of the AWT Project shall be constructed and thereafter owned, operated, and maintained by SERRA, through, on behalf of, and for the use and benefit of, the PC 2/AWT Members. 1BAW&G/PBG/ke/65769.3 17003 N 2.22-07/26/00 Final:Execution -7- Section 2C. Preliminary Design Report. It is agreed that upon SERRA's receipt of funds as set forth in Exhibit C hereto, SERRA shall contract with an engineering firm satisfactory to the majority of the PC 2/AWT Members for the PDR forthe AWT Project, The PDR shall include recommendations with respect to Phase 1, Phase 2 and Phase 3 of the AWT Project, and shall include recommendations as to placing of project facilities on the SERRA Plant Site, the preliminary project cost estimates, and a proposed cost allocation of Phase I final design and construction costs among the PC 2/AWT Members. The PDR shall further investigate and report upon the proposed method and operation, whether integrated or not, of the existing wastewater treatment facilities of the SERRA Plant, and the AWT Project facilities. Section 2D. Assistance by Participating Members. Each PC 2/AWT Member agrees that it will cooperate with SERRA and each other PC 2/AWT Member in connection with design and construction of the AWT Project. Section 2E. Final Accounting. Subsequent to completion and acceptance of any phase of the project to be constructed, SERRA staff shall prepare a final accounting of that particular project phase costs, including the costs set forth in Exhibit C. The accounting shall reconcile the final costs of the completed project phases with the funds previously deposited with SERRA by the PC 2/AWT Members , such reconciliation to be based on the cost and/or capacity allocations set forth in this Amendment No. 2, inclusive of addenda hereto. The accounting of the project phases shall be reviewed by PC 2/AWT to determine consistency with the terms of this Amendment No. 2, inclusive of addenda hereto . The accounting shall be furnished to each PC 2 /AWT Member within ninety (90) consecutive calendar days following completion and acceptance of any phase of the project. As part of the final accounting, each PC 2/AWT Member shall receive its share of any unexpended funds, based upon the allocation methods to be established pursuant to this Amendment No. 2 and addenda hereto. II. GENERAL PROVISIONS FOR PROJECT CONSTRUCTION, O&M Section 3. Non-Interference. The PC 2/AWT Members agree that the work of contractors and any subcontractors during construction of the AWT Project, as well as the HAW&G/PB6/ke/657693 17005 N 2.22-07/26/00 Final:Bxewtion -8- operation, maintenance, repair and replacement of the AWT Project thereafter, will not interfere with any present or future construction, operation or maintenance of the SERRA Plant wastewater treatment operations. SERRA will maintain separate detailed records of account of the operation and maintenance costs for the AWT Project in accordance with standard project committee procedures. Section 4. Plant Warranties. The PC 2/AWT Members agree that in the event any warranty provided for in conjunction with the construction of facilities at the SERRA Plant are invalidated as a result of construction of the AWT Project, the PC 2/AWT Members shall be financially responsible in proportion to their capacity interests in the AWT Project as set out in Table 2 of Section 113 herein in the event SERRA and the PC 2 Members suffer any expense which otherwise would have been covered by any said warranty, and the PC 2/AWT Members will reimburse SERRA/Project Committee No. 2 for such costs. Section 5. Project Modification. If the PC 2/AWT Members, during the course of construction of any phase of the AWT Project, desire to modify the AWT Project in a "significant manner" from that which has been previously reviewed and approved by Project Committee No. 2, or how the project is to operate or interface with the SERRA Plant, prior approval of Project Committee No. 2 will be required. "Significant manner" shall be deemed to mean that such change could result in an adverse impact upon the SERRA Plant; provided, the parties do not intend by these terms to require Project Committee 2's approval of all contract change orders, or minor modifications in design or construction. Section 6. No Interference. In the event operation of the AWT Project impedes or interferes with meeting the required current effluent standards for ocean disposal or treated wastewater imposed on SERRA, the PC 2/AWT Members agree that SERRA will cease operating the AWT Project until modifications are made to correct such impediments or interference, which modifications shall be subject to the approval of Project Committee No. 2 in the same manner as modifications pursuant to Section 5 of this Amendment No. 2. BAW&G/PBG/ke/65769.3 17005 N 2.22-07/26/00 Find:Execution -9- Section 7. Effluent Quality. SERRA and Project Committee No. 2 make no representation as to the consistency of the quality of the existing or future effluent produced at the SERRA Plant, other than to discharge effluent to the extent possible within the limits established by SERRA's NPDES Permit. In the event such effluent is of a quality incompatible with the AWT Project requirements, the PC 2/AWT Members agree that SERRA/Project Committee No. 2 shall not be required to make any modification to the SERRA Plant or to the method of operation of said plant, nor shall SERRA/Project Committee No. 2 be liable for any damage to, or inability to operate, the AWT Project. The PC 2 Members agree to allow modifications to the SERRA Plant in order to improve effluent quality, to the extent such improvements are consistent with sound engineering and operation and maintenance practices for municipal sewage facilities of the type comprising the SERRA Plant. Such modifications shall be subject to approval by Project Committee No. 2 and shall be at the sole expense of the PC 2/AWT Members, including capital costs for construction, as well as operation and maintenance costs. Such modifications shall not affect the useful life of the SERRA Plant or any of the plant components. Project Committee No. 2 shall not unreasonably withhold approval of any proposed modifications to the AWT Project. Section 8. Exceeding Capacity. In the event the use by any PC 2/AWT Member of recycled water produced by the AWT Project exceeds either (i) the designated capacity interests set forth in Table 2 of Section IB or (ii) the amount of recycled water which can be produced from the effluent resulting from wastewater flows solely of that respective PC 2/AWT Member, then that PC 2/AWT Member agrees that it shall, upon request by any impacted PC 2 Member, enter into an agreement with such requesting member(s) to purchase or otherwise obtain additional AWT Project capacity rights, or the use of additional effluent, to meet the recycled water requirements of such PC 2/AWT Member. Section 9. No Effect On SERRA Plant Capacities. The PC 2/AWT Members' investment in the AWT Project shall not increase any such member's pro rata ownership of facilities or property previously or subsequently acquired by SERRA's Project Committee No. 2 for the benefit of all of the PC 2 Members. It is agreed that the PC 2/AWT Members shall not utilize any greater wastewater treatment capacity than provided for in the PC2 Agreement. If necessary, any BAW&G/PBG/ke/65769.3 17005 N 2.22-07/26/00 Final:Execution -10- PC 2/AWT Member will build additional treatment facilities or acquire additional treatment capacity at the SERRA Plant from the PC 2 Members if SERRA determines that such PC 2/AWT Member is exceeding its treatment capacity rights and has not acquired additional capacity rights. Section 10. Project Site Rental. The PC 2/AWT Members shall pay to SERRA/Project Committee No. 2 a one-time rental payment for the use of the SERRA Plant site area upon which the AWT Project is located. Said sum will be determined by multiplying the percentage of the total SERRA Plant site occupied by the AWT Project to the actual purchase price for the SERRA Plant site acquisition(local share only in the event of grant funding). The allocation of the rental payment credited to the PC 2 Members will be based on the members' current liquids capacity interest in the SERRA Plant. The rental payment may be paid in installments to coincide with the phased construction of the AWT Project in the event the earlier project phases utilize greater or less square footage than anticipated by the PDR. If such `phased' rental installments apply, funds are payable concurrently with award of the construction contract for the applicable phase. Section 11. Operating Costs. It is further agreed that each of the PC 2/AWT Members, in addition to obligations otherwise provided for in this Amendment No. 2, shall pay to SERRA its proportionate share of the operation, maintenance and capital repair and improvement costs of the AWT Project. For purposes of this Section 11, maintenance and operating costs shall mean the necessary costs of maintaining and operating the AWT Project based on sound accounting principles, including expenses necessary to maintain and preserve the AWT Project in good repair and working order, inclusive of the Capital Repairs/Improvements defined below in subsection (c), as well as insurance, taxes, and any costs attributable to maintenance and operation. It specifically does not include depreciation or any obsolescent charges or any reserves therefor, or amortization of intangibles or other bookkeeping entries of a similar nature. Capitalized terms set forth in this Section and not otherwise defined shall have the meaning set forth in the PC 2 Agreement. The following is agreed to by each of the PC 2/AWT Members in order to define the terms to govern the manner in which the operation, maintenance and repair costs for the AWT Project shall be allocated: BAW&G/PBG/kel65769.3 17005 N 2.22-07/26/00 Final:Execution —1 1- (a) SERRA shall bill each member, and each member agrees to pay, the proportionate share of all operating and maintenance expenses of the AWT Project in the amounts and at the times set forth in this Section 11. SERRA will establish an operations and maintenance budget for each fiscal year(July 1 to and including June 30) for all such expenses and each PC 2/AWT Member shall make quarterly deposits in advance to SERRA equal to twenty-five percent (25%) of the budgeted share of such party's expenses during the fiscal year. (b) Except as hereinafter provided for Capital Repairs/Improvements (as defined below in subsection(c)), or unless otherwise agreed, the operating and maintenance expenses shall be allocated among the PC 2/AWT Members and paid by each PC 2/AWT Member in accordance with the following terms: (i) "Variable Operation/Maintenance Costs" shall include all costs not otherwise defined below in (ii) as "Common Costs". All Variable Operation/Maintenance Costs shall be allocated based on each PC 2/AWT Member's average annual mgd of recycled water produced for such member's use; provided, for budget deposits necessary for the first fiscal year of project operation, all allocations for the PC 2/AWT Members will be based on projected recycled water production. (ii) "Common Costs" shall include all fixed operating and maintenance costs and expenses including but not limited to insurance, landscape maintenance, legal, audit, and permit fees that benefit facilities at the AWT Project, regardless of actual recycled water production. Common Costs shall be allocated among the PC 2/AWT Members on the basis of the AWT Project capacity ownership percentages for each phase set forth in Table 2 above; provided, prior to completion of Phase 2 of the project, the Common Costs shall be allocated among the PC 2/AWT Members on the basis of the total Phase 1 project cost allocation set forth in the PDR (iii) "Standby Costs" shall be that portion of the Variable Operating/ Maintenance Costs determined necessary to maintain the AWT Project, assuming no recycled water is produced at the project facilities. As such, only the PC 2/AWT Members with stated BAW&G/PBG/Ke/65769.3 17005 N 2.22-07/26/00 Final:Execution -12- capacities under Table 2 for any AWT Project phase shall have an annual liability for Standby Costs. Standby Costs shall be determined under the following formula: (A) multiplying a varying percentage (as determined through the annual budget process) by certain line items in the budgeted Variable Operation/Maintenance Costs; (B) adding the resulting products under step (A) and dividing the resulting number by the current mgd of the AWT Project (dependent on the phase) to arrive at a "standby charge" per mgd of unused recycled water capacity; and, (C) multiplying the resulting standby charge under step (B) by each PC 2/AWT Member's average unused recycled water capacity during the prior fiscal year: to yield each PC 2/AWT Member's total Standby Costs apportionment. (c) Unless otherwise agreed, the costs of(i) replacing, modifying or upgrading any portion of the AWT Project or equipment having a useful life of five years or longer, or (ii) any facilities or equipment costing in excess of TEN THOUSAND DOLLARS ($10,000.00) (hereinafter (i) or (ii) are"Capital Repairs/Improvements") shall be allocated on the basis of the recycled water capacity ownership percentages set forth in Table 2 above as opposed to the average annual use of recycled water produced by the AWT Project set forth as the allocation method under subsection(b)(i) above. The PC 2/AWT Members acknowledge that the budgeted costs for the Capital Repairs/Improvements are considered part of the annual operations and maintenance budget for PC 2/AWT, subject to the two-thirds budget approval established by Section 19 of the Joint Powers Agreement. The parties acknowledge that in accordance with Section 21 of the Joint Powers Agreement, for purposes of awarding contracts for the purchase of, or for the design, inspection, construction management or construction of, budgeted capital Repairs/Improvements, approval by only a majority of the PC 2/AWT Members is required. (d) The PC 2/AWT Members shall each (or in combination) furnish to SERRA in writing the meter readings documenting that member's recycled water use on a quarterly basis BAW&G/PBG/kd65769.3 17005 N 2.22-07/26/00 Final:)xe tion -13- pursuant to SERRA's practices for the purpose of determining the amount of recycled water being used by each member. (e) It is agreed that the actual costs of operation and maintenance during a fiscal year shall be reviewed at least quarterly, including a comparison to the approved operations and maintenance budget required by Section 19 of the Joint Powers Agreement. SERRA shall prepare a use audit at the end of for each fiscal year in order to reconcile the operation and maintenance costs budgeted and paid during such fiscal year by the PC 2/AWT Members with the actual costs incurred by each PC 2 Member. Section 12. Successors. The PC 2 Agreement and this Amendment No. 2 shall be binding on and shall inure to the benefit of the parties and their successors. Section 13. Effect of Amendment. Except as modified herein, all other terms and conditions of the PC 2 Agreement shall remain in full force and effect. In the event of any conflict or inconsistency between the PC 2 Agreement and this Amendment No. 2, the terms of this Amendment No. 2 shalt control. Section 14. Recitals/Exhibits. The parties each represent and agree the Recitals are true and correct. The Recitals are incorporated into this Amendment No. 2. Attachment 1, and Exhibits A , B and C are attached and incorporated (or, shall be upon completion and requisite approvals) into this Amendment No. 2. BAW&G/PBG/ke/65769.3 17005 N2.22-07/26/00 Final:Execution -14- THIS AMENDMENT NO. 2 is entered into by each of the parties as of the Execution Date defined above. SOUTH EAST REGIONAL RECLAMATION AUTHORITY ON BEHALF OF PROJECT COMMITTEE NO. 2 BY A./ Chaff an Wyatt Hart BY c��Cl � Secretary APPROVED AS TO FORM: BOWIE, ARNESON, WILES & GIANNONE Legal unsel - SERRA By g Patricia B. Giannone CITY OF SAN JUAN PISTRAN By M r Co ne Ca6pbell By city Cl SANTA MARGARITA WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary BA W&G/PBG/ke/65769.3 17005N2-19-07111100 Draft 3 THIS AMENDMENT NO. 2 is entered into by each of the parties as of the Execution Date defined above. SOUTH EAST REGIONAL RECLAMATION AUTHORITY ON BEHALF OF PROJECT COMMITTEE NO. 2 By Chairman By Secretary APPROVED AS TO FORM: BOWIE, ARNESON, WILES & GIANNONE Legal Counsel - SERRA By Patricia B. Giannone CITY OF SAN JUAN CAPISTRANO By Mayor By City Clerk SANT ARGA AT R DI T By President/Vice-?resident BY Cc i�vV9 e ret Assistant Secretary BAW&G/PBO/ke/65769.3 17005 N 2.22-07/26/00 Final:Execution -15- MOULTON NIGUEL WATER DISTRICT By Pr sident/Vice-President By 1 e r ry/Assistant Secreta SOUTH COAST WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary BA W&G/PBG/ke/65769.3 17005N 2.19-07111M Draft 3 MOULTON NIGUEL WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary SOUTH COAST WATER DISTRICT Byj President/Vice-President / Secretary/Assistant Secretary BAW&G/PBG/ke/65769.3 17005 N 2.19-07/11100 PraR 3 EXHIBITS/ATTACHMENTS EXHIBIT A - SCHEMATIC OF SERRA PLANT FACILITIES EXHIBIT B - SCHEMATIC OF PLANNED AWT PROJECT COMPONENTS [TO BE ATTACHED UPON COMPLETION OF PRELIMINARY DESIGN REPORT] EXHIBIT C - AWT PROJECT PARTICIPANT FUNDING PHASE I PRELIMINARY DESIGN BUDGET ATTACHMENT I [TO COME] - SUMMARY OF PRELIMINARY DESIGN REPORT BAW&GlPBO/ke/65769.3 17005 N 2.22-07/26/00 Final:Execution EXHIBIT C ALLOCATION OF PRELIMINARY DESIGN COST Preliminary Design Project Budget: $102,000 Allocation of Preliminary Design Budget: I. Sixty thousand ($60,000) dollars divided evenly between the three members. 2. The remaining portion($42,000) to be distributed between the members according to percentage of ownership after the completion of the first phase. Member Even Division Percentage of Allocation of Total of$60,000 AWT Capacity $42,000* After Phase 1 SJC $20,000 73% $30,660 $50,660 MNWD $20,000 0% $0 $20,000 SCWD $20,000 27% $11,340 $31,340 TOTAL $60,000 100% $42,000 5102,000 * $ = Percentage of AWT Capacity After Phase 1 x $42,000. HAW&G/PBG/ko/65769.3 17005 N 2.22-07/26/00 Final:Execution -18- E ■I�I�'�'® ®ill '® t°k „0' sE W, 11 0s�/\i�4iII+) ry�tIwv/yy— �i_wl�®/➢�nl7I+)�:A�o II itn11 . Oil 17; 1000) INN— '!AM Ifffir0) li g 30 vol wo Bloom NAN= ))VA v0 v ➢i1l1! ■� I 11 till.�ido� �t t� o7 �1 til ( lllllt 11 N 1 Ell 1{ ■ ipIi� ii gy g ii 1 • MEN e➢t'O�l o1i O e P01pli O om`- �t 91 .,1 It US L\�) llt (1111=05i PF ►\\00 GUM ,�> li i�9e�HC�> It t1i�D�C�> It �We— <OP) tt t61�N(�� It 1 ��u��F'�r� � w� r t��rr ��I �Ir t�� %+\ f'J\\ �At'rAy d"�� .41��V • IIl� �'!!��l;¢!!I I!!I!Illiilil9ll III!!!lIII!lIII! � � ,✓ II✓/�c " � RIVEc RHA IIIIIIIIIIIIIIII lull/f/lliiiii��. .. ,, ., ,.._. .- lffllf/ff%llfff%%Ilffffl, . . • - CATH'A41 - - - - - - - - - - ---- - - RAW NE�� PNBI , �Pw MPTANN ' � 11 SCALE:1-a00'-0" ODOR REOUOTIOR CPGENER1lION p CN3E$TER / BIUOtiE L)EWAI@BNO BLOO, BLW ROTATIM ROTATCN M77 gas 0 BSbNACE PMNIVO O , W O I i r FsSTkE',R ,OBER t Q n��- Wsxer LABORATORY 1f 8Nr f BINwINti .(w� ovo"nwe L/�l___J stain / 'rxons� 9COWFRa ` aWryNp T�� ) • RINRb(ATpN to MAUI fYWdfAllgl f � ti LL '.. 1 t L7. I - i1RllCR) 4= / ❑ 9Eco h ' 1 BOUTHCOA9T WAER pS1RICT I - f1 � I� "AINTENACEYARO Q 'Yf(: inaw 1 G4LRWE Tu p� 1fF1AER PUY�I�INia mm OENERATIXt Bw d {rt` II •u�cmw :: � I p� I� PA16 � 8Ml.IWNGREIX o� P07ER4W 8mmRAWrlWWEXTPINAPMGTA7fM O I( y.FSM aG61E PLANT ENTRANCE TRAILER PARK i SITE AVAILABLE FOR AWf FACILITY a — PAVED AREAS EXHIBIT "A" o _ — COMMON FACILITIES m 9:08:05am P:\127-26\8-21—figs\figl—1—a.dwg ! DEL OBISPp ST b i REST � I I I m b ilk Asa d ,E m 49 D \J A t 3 S y � J y c r � i-'k�4 o-4 :. ��' g ..�,�4�� ♦ �)��3t 1'` �� 1 meg{ mM4 P Y �5 .fid 7. hs f�' ❑ Z � I � ,Y1L t -'�/°KV � � re(�3r^k�SY� r vYrr�:�ft•.�-r, � >�'1�a ,� FF v 4 }"i4 �fi° `9r'ro�: 4 �sn, ih xp5n k 17, Syy 1tA.p y n A J r 4 h 1 ❑ � rI I €0 ��, s � - - —__ �'r Y Y � .wown��YII iltl®mr\Y/��SI 11'®sa\ti./ 811 I.g.eo�`�, �IC 9k®ms�/1�'Bt(9 . • , v--- <�' pmr d..4'^�r1 ��15 _ k11 >4C S IB'.O 1 O 1010 .3 r0) 1D'r0 " iu i !0 illii��i_ 11 1�� , �i U �a ll 11 , if `� r )'at�� a rlIr �r a61i$�, @i►. .4i�� :Eib� 'br �� \ �N 1 �,®® 6111 u lti's ala' r E98�o� �i T ) ®i®1 i�l°p 77 E . oii iN2"Pip4 -ha . 7 �i b3i�klrt R �jiYN � �' // I1 Ro 1 s 4 sy dr ' s ys gypsA ��ygpgj +!,��p .�1.) 1 I .10909 NCi � e? • Nly t � �p i � 1 /'�i�� ®dl�\ PON! v R 111 . IN � � I PQ6[I �� ➢iE ir3P4�fi� i1Dtv �Pi �, �® � � � �Y ��gt� `M jy$Fe' 4 a �) cur" o ili lg�l; 0>` 91f 11IM((o li I11ZPW ' � rt • • lig 'a lx I1!9s�� s111��;€ sir, IN i EXHIBIT C ALLOCATION OF PRELB41NARY DESIGN COST Preliminary Design Project Budget: $102,000 Allocation of Preliminary Design Budget: 1. Sixty thousand ($60,000) dollars divided evenly between the three members. 2. The remaining portion($42,000) to be distributed between the members according to percentage of ownership after the completion of the first phase. Member Even Division Percentage of Allocation of Total of$60,000 AWT Capacity $42,000* After Phase 1 SJC $20,000 73% $30,660 $50,660 MNWD $20,000 0% $0 $20,000 SCWD $20,000 27% $11,340 $31,340 TOTAL $60,000 100% $42,000 $102,000 * $ = Percentage of AWT Capacity After Phase 1 x $42,000. BA W&G/PBG/ke/65769.3 17005 N 2.22-07/26/00 Final:Execution -18- t AMENDMENT NO. 1 AGREEMENT FOR ACQUISITION, USE, OPERATION, MAINTENANCE AND EXPANSION OF SEWAGE TREATMENT PLANT OF CITY OF SAN JUAN CAPISTRANO BY SOUTH EAST REGIONAL RECLAMATION AUTHORITY FOR AND ON BEHALF OF PROJECT COMMITTEE NO.2 (THE "PC 2 AGREEMENT") This Amendment No. 1 to the PC 2 Agreement, except as otherwise provided Section 1.1 herein, is made effective this 18 th day of May 1998 (the "Execution Date"), by and between the SOUTH EAST REGIONAL RECLAMATION AUTHORITY("SERRA"), a joint powers agency created by that certain joint powers agreement entitled"Joint Exercise of Powers Agreement Creating South East Regional Reclamation Authority, Orange County, California (SERRA)" dated March 9, 1970 (the"Joint Powers Agreement"), and pursuant to Section 6500 and following of the Government Code of the State of California for and on behalf of its Project Committee No. 2, and the following entities: (a) The City of San Juan Capistrano ("SJC"); (b) Dana Point Sanitary District("DPSD"); (c) Santa Margarita Water District("SMWD"); (d) Moulton Niguel Water District("MNWD"); SJC, DPSD, SMWD and MNWD are sometimes collectively referred to in this Amendment No. 1 as the "Original PC 2 Members"; and (e) Capistrano Beach Water District("CBWD"). The foregoing entities are collectively in some instances referred to as the"PC 2 Members", or individually as "party" and collectively or in combination as the"parties". All parties are member agencies of SERRA and parses to the Joint Powers Agreement. BAW&G/PBG/56/42500.08 17005 N 2.27-5/20199-Finai 0 RECITALS A. This Amendment No. 1 to the PC 2 Agreement is being entered into (a) to provide for CB WD's membership in Project Committee No. 2 of SERRA. Project Committee No. 2, was formed to own and operate a regional sewage treatment plant known as the "Jay B. Latham Regional Treatment Plant" (the "SERRA Plant"); (b)to provide for approval of transfers of capacity in the SERRA Plant to CBWD by SJC, DPSD and SMWD; (c)to verify liquids handling and solids handling capacity of all PC 2 Members; and (d)to clarify terms for allocating operations, repair and maintenance costs and approving operation, repair and maintenance projects. B. SERRA and the Original PC 2 Members executed the PC 2 Agreement on June 28, 1973, to provide for SERRA's acquisition of the SERRA Plant from SJC and DPSD. The PC 2 Agreement additionally provided for the expansion of the liquids treatment capacity in the SERRA Plant from 6.0 million gallons per day (mgd)to 9.0 mgd. The PC 2 Agreement also set forth the Original PC 2 Members' operation and maintenance expense obligations for the SERRA Plant. Upon completion of the 3.0 mgd expansion,the digester capacity of the Plant was also expanded to 16.0 mgd. C. SERRA, SMWD, DPSD and MNWD entered into the "Agreement For Construction and Capacity Ownership of Additional Water Reclamation Facilities For the South East Regional Reclamation Authority For and On Behalf of Project Committee No. 7" on July 13, 1978, and the contemporaneous"Addendum to Agreement For Construction and Capacity Ownership of Additional Water Reclamation Facilities For the South East Regional Reclamation Authority For and on Behalf of Project Committee No. 7," also dated July 13, 1978,to expand the liquids treatment capacity in the SERRA Plant to 13.0 mgd, and to add additional sludge thickening capacity for and on behalf of such Original PC 2 Members. D. SERRA and the Original PC 2 Members entered into the"Agreement for Design, Construction, Use, Operation and Maintenance of Solids Handling and Cogeneration Facilities at BAW&G/PBG/sb/42500.08 17005 N 2.27-5/20198-Final -2- the J.B. Latham Regional Wastewater Treatment Plant for and on Behalf by South East Regional Reclamation Authority for and on Behalf of Project Committee No. 16", dated November 10, 1982, to bring the dewatering capacity in the SERRA Plant up to 16.0 mgd. E. SERRA and the Original PC 2 Members entered into an agreement entitled "Agreement Re Project Committee Nos. 2, 7 and 7-A of South East Regional Reclamation Authority Relative to Verification of Liquid Treatment and Solids Handling Capacity at the Jay B. Latham Regional Wastewater Treatment Plant", dated November 8, 1984 (the "1984 Agreement"). The 1984 Agreement set forth the nominal liquids treatment capacity of 13.0 mgd and the nominal solids handling capacity of 18.5 mgd of the SERRA Plant, and the allocation of such capacities among the Original PC 2 Members for purposes of ownership and cost responsibility for operation, including capital repair and improvement projects. The 1984 Agreement also addressed the `perfection' of the solids handling capacity and the perfection costs to be paid by SMWD and MNWD. Since 1984, SERRA on behalf of PC 2, has completed the construction of, or is currently planning for the remaining construction of, all capital improvements necessary to perfect the solids handling capacity of the SERRA Plant to 18.5 mgd. The parties acknowledge that each has received a copy of the draft SERRA/Project Committee No. 2 Capital Improvement Plan, dated January, 1998, which sets forth(among other things) the anticipated capital projects for the SERRA Plant. The parties represent they have reviewed the Capital Improvement Plan and are familiar with the contents of such plan. F. DPSD and SMWD entered into a joint exercise of powers agreement dated August 25, 1987,to provide for the financing and acquisition of permanent wastewater treatment capacity in the Plant for DPSD, through the creation of the "Santa Margarita/Dana Point Authority". The Santa Margarita/Dana Point Authority and SMWD entered into a purchase agreement entitled"Purchase Agreement Relating to Capacity in the SERRA Wastewater Treatment Plant" dated April 1, 1989, in which SMWD sold 1.0 mgd of liquids capacity to the Santa Margarita/Dana Point Authority; the Authority and DPSD, in turn, entered into the "Installment Purchase Agreement Relating to Capacity in the SERRA Treatment Plant", dated as of April 1, 1989, in which the Authority sold the 1.0 mgd liquids capacity to DPSD on an BAW&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -3- installment purchase basis, financed by the Authority's issuance of revenue bonds (collectively, the "SMWD/DPSD Transfer"). The SMWD/DPSD Transfer was approved by the Original PC 2 Members. G. MNWD and SJC previously entered into an agreement entitled, "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", effective November 1, 1990, in which MNWD assigned 2.0 mgd of liquids capacity and 2.0 mgd of solids capacity to SJC (the "MNWD/SJC Transfer"). The MNWD/SJC Transfer was approved by the Original PC 2 Members. H. CBWD's predecessor-in-interest, Capistrano Beach Sanitary District(CBSD) and SJC previously provided for SJC's interim lease of a portion of the solids handling capacity SJC owned in the SERRA Plant to CBSD. The interim lease arrangement was consented to by the Original PC 2 Members in 1993, and is still operative. I. CBWD has entered into separate agreements with,respectively, SMWD, DPSD and SJC for CB WD to take assignment of, in the aggregate, 1.5 mgd of liquids treatment capacity and 1.5 mgd of solids handling capacity in the SERRA Plant(the "CBWD Capacity Transfers"), contingent upon the execution of this Amendment No. 1 and CBWD's compliance with the terms and conditions set forth herein. CBWD anticipates full funding for the CBWD Capacity Transfers will be available to CBWD on approximately November 1, 1998. The Original PC 2 Members desire to set forth their approval of the CBWD Capacity Transfers (as required by the Joint Powers Agreement) in accordance with all the terms and conditions set forth in this Agreement. J. The parties desire at this time to also set forth the allocations of the liquids treatment capacity and solids handling capacity of the SERRA Plant among the parties to reflect the prior SMWD/DPSD Transfer and MNWD/SJC Transfer, as well as the CBWD Capacity Transfers. The parties intend to verify, resolve, compromise and fully settle all issues pertaining BAW&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -4- to the liquids treatment and solids handling capacity of the SERRA Plant and all cost allocations of such capacities and to set forth the current allocations of liquids and solids capacities among the PC 2 Members. This Agreement is intended to supersede the 1984 Agreement, and to constitute an Amendment No. 1 to the PC 2 Agreement. NOW, THEREFORE, the parties, in consideration of the mutual covenants herein, agree as follows: AGREEMENT I. CBWD PC 2 MEMBERSHIP Section 1.1 CBWD Membership. The Original PC 2 Members approve CBWD's membership within Project Committee No. 2 subject to the terms and conditions set forth in this Amendment No. 1. Upon the Original PC 2 Members' and CB WD's execution of this Amendment No. 1 and the satisfaction of the conditions set forth herein, CBWD shall be a member of Project Committee No. 2, subject to all the rights, duties and obligations applicable to all the PC 2 Members. As of the Effective Date (defined hereafter), and except as set forth in Section 1.4 below, CBWD acknowledges and assumes the rights, duties and obligations set forth in all Project Committee No. 2 and the Project Committee Nos. 7, 7A and 16 agreements and contracts, and all amendments to those documents, and all other obligations whether written or otherwise of Project Committee No. 2 or of SERRA's, which are expressly or impliedly on behalf of Project Committee No. 2. CBWD's membership in Project Committee No. 2, and the Original PC 2 Members' approval of the CBWD Capacity Transfers shall be deemed effective (the"Effective Date") only upon the satisfaction of the following conditions: (a) Execution of separate capacity assignment agreements between CBWD and, respectively, SJC, SMWD and DPSD, and satisfaction of all contingent conditions BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -5- - required for the effectiveness and enforceability of each such agreement. The individual agreements shall have been reviewed and approved by SERRA's General Manager and Legal Counsel in advance of execution. This review is intended to ensure the terms of such individual transfer agreements are not in conflict with the Joint Powers Agreement, PC 2 Agreement, or any other terms and conditions applicable to SERRA or Project Committee No. 2 with respect to the CBWD Capacity Transfers. CBWD will provide executed copies of all such agreements to SERRA as soon as possible. CBWD shall provide written notice to SERRA and to the individual Original PC 2 Members confirming the Effective Date. (b) As further described in Section 1.2 of this Agreement, CBWD's reimbursement of the buy-in costs to SERRA. (c) CBWD's deposit of the amount of$98,230 for emergency reserves for Project Committee No. 2, in compliance with SERRA's emergency reserve policy set forth in Resolution No. 96-04. (d) CBWD's deposit with SERRA, the amounts listed in Exhibits A-1 and A- 2 to this Amendment No. I for the quarterly deposit amounts(or portion thereof) depicted as CBWD's allocated budgetary shares. The Original PC 2 Members previously approved the fiscal year 1998-99 budget for Project Committee No. 2. Exhibit A-1 hereto is the 1998-99 "Operations and Maintenance Budget- PC 2 Cost Allocation", revised to reflect CBWD's membership and the CBWD Capacity Transfers. Exhibit A-2 hereto is the 1998-99 "Project Committee No. 2 - Capital Projects Budget and Cost Allocation", revised to reflect CBWD's membership and the CBWD Capacity Transfers. Exhibits A-1 and A-2 assume the Effective Date is November 1, 1998, and incorporate that November 1 st date to determine CBWD's PC 2 budget allocation. The parties acknowledge the November 1, 1998 date is subject to change if the Effective Date is a different date. BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -6- (e) CBWD's installation of a metering device at its export pumping station to adequately measure CBWD's flows to the SERRA Plant. The type, size, nature and location of the metering device shall be acceptable to SERRA's Director of Engineering. (f) The filing of a Negative Declaration for the CBWD Capacity Transfers under the California Environmental Quality Act by SERRA, and the expiration of the statute of limitations period of thirty (30) days from such filing. Section 1.2 CBWD `Bu_v-In' Costs. CBWD agrees to pay the legal costs and expenses incurred by SERRA for the preparation of this Amendment No. 1, and all proceedings, meetings and other work related to the CBWD Capacity Transfers, whether or not CBWD becomes a member of Project Committee No. 2 under this Amendment No. 1 and whether or not the CBWD Capacity Transfers become effective. Upon CBWD's execution of this Amendment No. 1, CBWD will pay SERRA for all legal bills previously invoiced to and/or paid by SERRA for the CBWD Capacity Transfers matter. SERRA shall provide CBWD with copies of the legal services invoices to be paid by CBWD at least fifteen(15) calendar days prior to the payment deadline. After the Effective Date, CBWD shall pay any further such amounts within thirty (30) calendar days of receipt of SERRA's written request, which request shall include copies of the legal services invoices. All other costs, if any,related to the CBWD Capacity Transfers matter shall be apportioned among the PC 2 Members (which by definition includes CB)WD) in accordance with the cost methodology set forth in Section 3.1 hereafter. All engineering, legal, environmental, regulatory or other fees, costs, or expenses incurred by any PC 2 Members for that member's own review and approval of this Amendment No. 1 or any other matter associated with the CBWD Capacity Transfers are not considered an obligation or cost of SERRA or Project Committee No. 2 and shall be paid for by such PC 2 Member from its own funds and not from any funds on deposit with SERRA for Project Committee No. 2. BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -7- Notwithstanding any other term in this Amendment No. 1, CBWD's payment obligation under this Section 1.2 is unconditional and is effective as of the Execution Date, and is not subject to any contingent condition, including but not limited to CBWD's membership in Project Committee No. 2 and the effectiveness and enforceability of the capacity assignment agreements. Section 1.3 Victoria Plant. CBWD shall provide SERRA with a schedule for decommissioning and demolishing CBWD's Victoria Treatment Plant no later than the Effective Date. CBWD shall thereafter provide SERRA with periodic updates to the decommissioning and demolishment schedule upon SERRA's request. As of the Effective Date, CBWD will provide a written certification to SERRA that the Victoria Treatment Plant is no longer operational and that CBWD will neither receive nor treat any further wastewater at Victoria Treatment Plant for disposal to the SERRA Ocean Outfall, or any other land or outfall facility. Section 1.4 Administrative Buildine. Pursuant to that certain SERRA Resolution No. 92-07 entitled"Resolution of the Board of Directors of the South East Regional Reclamation Authority Acting on Behalf of Project Committee No. 2(R)" dated June 11, 1992 (the "Administrative Building Resolution") and implementing actions taken by SERRA, the Original PC 2 Members collectively funded the purchase of SERRA's administrative building located at 30290 Rancho Viejo Road, San Juan Capistrano, CA 92675. SERRA holds legal title to the building, on behalf of the Original PC 2 Members, in accordance with the terms of the Administrative Building Resolution and budgetary approvals. Notwithstanding CBWD's membership in Project Committee No. 2, and CBWD's assumption of the rights, duties and obligations set forth above in Section 1.1, CBWD will have no right, title or interest in the Administrative Building, and no duties, obligations, or benefits as an owner under the Administrative Building Resolution and implementing budgets. The purpose of this Section 1.4 is to preserve the status quo of the Original PC 2 Members with respect to the matters discussed in this Section 1.4. Notwithstanding any other terms set forth in this Section 1.4, CBWD's obligation to fund rental payments for use of the Administrative Building upon CBWD's membership in SERRA's BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -8- , Project Committee No. 2, or CBWD's current obligation to fund rental payments through its membership in Project Committee No. 5 (Ocean Outfall), or in any other capacity as a member agency of SERRA, shall remain in full force and effect. II. CBWD CAPACITY TRANSFERSNERIFICATION OF CAPACITY OWNERSHIPS Section 2.1 Capacity Ownership - Original PC 2 Members. As of the Execution Date, the liquids and solids capacities shall be allocated among the Original PC 2 Members as set forth in Table 1 below: Member Liquid Capacity Percentage Solids Handling Percentage (mgd)* Capacity (mgd)* SJC 4.50 34.61 6.30 34.05 DPSD 2.50 19.23 2.20 11.90 SMWD 3.00 23.08 6.00 32.43 MNWD 3.00 23.08 4.00 21.62 TOTAL 13.0 100.00 18.5 100.00 * - Average dry weather flow rate, million gallons per day. In the event the CBWD Capacity Transfers do not become effective,the liquids and solids capacities of the Original PC 2 Members set forth in Table 1 will be used to determine all cost allocations, budget matters and any other Project Committee No. 2 matters based on capacity ownership, unless otherwise unanimously agreed in writing by the Original PC 2 Members. Section 2.2 CBWD Capacity Transfers. As required by Section 30 entitled Project Facilities of the Joint Powers Agreement, the Original PC 2 Members approve the CBWD Capacity Transfers as set forth below in Table 2. The CBWD Capacity Transfers shall be effective as of the Effective Date (defined in Section 1.1). CBWD assumes all rights, duties and BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -9- obligations attendant to the exercise of the capacity rights CBWD has in the SERRA Plant, pursuant to the CBWD Capacity Transfers. .......... PC 2 Transferor Liquids Capacity Solids Handling Capacity (mgd)* (mgd)* sic 0.50 0.75 DPSD 0.25 0.00 SMWD 0.75 0.75 TOTAL 1.50 1.50 Average dry weather flow rate, million gallons per day. Section 2.3 Upon the Effective Date, the liquids and solids capacities shall be allocated among the PC 2 Members as set forth in Table 3 below: xx Member Liquid Capacity Percentage Solids Handling Percentage (mgd)* Capacity (mgd)* sic 4.00 3037 5.55 3000 DPSD 2.25 17.31 2.20 11.89 SMWD 2.25 17.31 5.25 28.38 MNWD 3.00 23.08 4.00 21.62 CBWD 1.50 11.53 1.50 8.11 TOTAL 1 13.0 1 100.00 1 18.5 100.00 Average dry weather flow rate, million gallons per day. Section 2.4 Capacity Ownership. The PC 2 Members agree that for all purposes the present capacities of the SERRA Plant are 13.0 mgd liquids treatment capacity and 18.5 mgd solids handling capacity. BAW&GfPBG/sb/42500.08 17005 N 2.27-5/20/99-Final -10- Section 2.5 Capacity Adjustment. Unless otherwise unanimously agreed in writing by the PC 2 Members having capacity rights in the SERRA Plant at the time of any reallocation, (a) in the event that the total SERRA Plant liquids treatment capacity is less than or exceeds 13.0 mgd, the actual liquid treatment capacity shall be allocated to each PC 2 Member using the liquids capacity ownership percentages set forth in Table 3 (or, if applicable, Table 1) above; and (b) in the event that the total SERRA Plant solids handling capacity is less than or exceeds 18.5 mgd, the actual solids handling capacity shall be allocated to each PC 2 Member using the solids capacity ownership percentages set forth in Table 3 (or, if applicable, Table 1) above. It should be noted that certain prior SERRA Plant capacity transfer arrangements between the PC 2 Members (as referenced to in the Recitals above)may include terms providing for `assured capacity' (or equivalent language), and the language set forth in this Section 2.3 is not intended by the parties to supersede such terms, as these terms may be enforceable between the respective PC 2 Members in connection with the individual transfer arrangements. The parties agree that the capacity adjustment mechanism set forth in subsections (a) and(b) of this Section 2.5 will, if applicable, determine all budget deposits and funding requirements for SERRA and Project Committee No. 2 proceedings. III. CLARIFICATION OF OPERATING COST COMPONENT Section 3.1 Amended Section 8 of PC 2 Agreement. Section 8, Operating Costs, of the PC 2 Agreement is amended to read as follows: "8. Operating Costs. It is further agreed that each of the parties to this Agreement, in addition to obligations otherwise provided for herein, will pay to SERRA its proportionate share of the operation, maintenance and capital repair and improvement BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -11- costs of the SERRA Plant. For the purpose of this Section 8, maintenance and operating costs shall mean the necessary costs of maintaining and operating the SERRA Plant based on sound accounting principles, including expenses necessary to maintain and preserve the SERRA Plant in good repair and working order, inclusive of the Capital Repairs/Improvements defined below in subsection(b), as well as insurance, taxes, and any costs attributable to maintenance and operation. It specifically does not include depreciation or any obsolescent charges or any reserves therefor, or amortization of intangibles or other bookkeeping entries of a similar nature. Capitalized terms set forth in this Section and not otherwise defined shall have the meaning set forth in Amendment No. 1 to this Agreement. The following is agreed to by each of the parties to this Agreement in order to define the terms to govern the manner in which the operation, maintenance and repair costs shall be allocated: (a) SERRA shall bill each party, and each of the parties to this Agreement agrees to pay, the proportionate share of all operating and maintenance expenses of the SERRA Plant in the amounts and at the times set forth in this Section 8. SERRA will establish an operations and maintenance budget for each fiscal year(July 1 to and including June 30) for all such expenses and each PC 2 Member shall make quarterly deposits in advance to SERRA equal to twenty-five percent(25%)of the budgeted share of such party's expenses during the fiscal year. (b) Except as hereinafter provided for Capital Repairs/Improvements (as defined below in subsection(c)), or unless otherwise agreed, the operating and maintenance expenses shall be allocated among the PC 2 Members and paid by each PC 2 Member in accordance with the following terms: (i) "Variable Operation/Maintenance Costs" shall include all costs not otherwise defined below in (ii) as"Common Costs"and (iii) as"Standby Costs". All BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -12- (B) adding the resulting products under step (A),and apportioning the resulting sum fifty-fifty (50150) between liquids treatment capacity and solids handling capacity; (C) dividing the liquids capacity 50%apportionment amount arrived at under step (B) by 13 mgd to arrive at a"standby charge"per mgd of unused liquids treatment capacity, and dividing the solids handling capacity 50%apportionment amount arrived at under step (B) by 18.5 mgd to arrive at a standby charge per mgd of unused solids handling capacity; (D) multiplying the liquids standby charge under step(C) by each PC 2 Member's average unused liquids treatment capacity during the prior fiscal year, and multiplying the solids standby charge under step (C) by each PC 2 Member's average unused solids handling capacity during the prior fiscal period, will yield each PC 2 Member's total Standby Costs apportionment. (c) Unless otherwise agreed, the costs of(i) replacing,modifying or upgrading any portion of the SERRA Plant or equipment having a life of five years or longer, or(ii) any facilities or equipment costing in excess of ONE THOUSAND DOLLARS ($1,000.00) (hereinafter(i) or(ii) are "Capital Repairs/Improvements") shall be allocated on the basis of the liquids treatment capacity ownership percentages or the solids handling capacity ownership percentages (as applicable) set forth in Table 2 or Table 3 (as applicable) of Section 2.2 of Amendment No. 1 to this Agreement, as opposed to the average annual use of the SERRA Plant set forth as the allocation method under subsection (b)(i) above. The parties acknowledge that the budgeted costs for the Capital Repairs/Improvements are considered part of the annual operations and maintenance budget for PC 2, subject to the two-thirds budget approval established by Section 19 of the Joint Powers Agreement. The parties acknowledge that in accordance with Section 21 of the Joint Powers Agreement, for purposes of awarding contracts for the purchase of, BAW&GlPBG/sb/42500.08 17005 N 2.27-5/20198-Final 44- or for the design, inspection, construction management or construction of, budgeted capital Repairs/Improvements, approval by a majority of the PC 2 Members is required. (d) SERRA shall install and maintain metering devices at the individual expense of the PC 2 Members whose flows will be measured by the metering devices for the purpose of determining the amount of liquid flows and solids being transmitted to the SERRA Plant for treatment. (e) It is agreed that the actual costs of operation and maintenance during a fiscal year shall be reviewed at least quarterly, including a comparison to the approved operations and maintenance budget required by Section 19 of the Joint Powers Agreement. SERRA shall prepare a use audit at the end of for each fiscal year in order to reconcile the operation and maintenance costs budgeted and paid during such fiscal year by the PC 2 Members with the actual costs incurred by each PC 2 Member." IV. GENERAL Section 4.1 Indemnification. CBWD shall indemnify, hold harmless and defend SERRA and its member agencies (except CBWD), and each of their directors, officers, representatives, consultants, agents and employees from and against all assessments, penalties, fines,judgements, claims, damages, losses, injuries, expenses and other costs, including attorney's fees, arising out of or resulting from or in connection with, or alleged to arise out of or result from or in connection with CBWD's actions in connection with or related to the decommissioning and demolishing of the Victoria Plant. This indemnification includes without limitation any claims, assessments, fines and penalties imposed by the state of California or the United States government, including any state or federal agency or department. Section 4.2 1984 Agreement. This Amendment No. 1 by its terms supersedes the 1984 Agreement, which is deemed by the Original PC 2 Members to be null and void as of the Execution Date. BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -15- - Section 4.3 Successors. The PC 2 Agreement and this Amendment No. 1 shall be binding on and shall inure to the benefit of the parties and their successors. Section 4.4 PC 2 Agreement. Except as modified herein, all other terms and conditions of the PC 2 Agreement shall remain in full force and effect. The Original PC 2 Members agree that in the event CBWD does not become a member of Project Committee No. 2 and the CBWD Capacity Transfers do not occur, all terms and conditions of this Amendment No. 1 not relating to CBWD shall remain in full force and effect as among the Original PC 2 Members. Section 4.5 Recitals/Exhibits. The parties each represent and agree the Recitals are true and correct. The Recitals are incorporated into this Amendment No. 1. Exhibit A is attached and incorporated into this Amendment No. 1. Section 4.6 Waiver. No waiver of any default by a party or parties shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. This Amendment No. 1 is entered into by each of the parties as of the execution date defined above. SOUTH EAST REGIONAL RECLAMATION AUTHORITY ON BEHALF OF PROJECT COMMITTEE NO. 2 B hairman By !L! CC Secretary BAW&G/PBGlsb/42500.08 17005 N 2.27-5120198-Final -16- APPROVED AS TO FORM: BOWIE, ARNESON, WILES & GIANNONE Legal Co7sel - SERRA By l,' Cl//Y Patricia B. Giannone CITY OF U ISTRANO By .0 May By City Cler DANA POINT SANITARY DISTRICT By President/Vice-President By Secretary/Assistant Secretary SANTA MARGARITA WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -17- APPROVED AS TO FORM: BOWIE, ARNESON, WILES & GIANNONE Legal C9 nsel - SERRA By i , Patricia B. Giannone CITY OF SAN JUAN CAPISTRANO By Mayor By City Clerk DANA POINT SA IITARY DISTRICT By President/Vice siden By — Secretary/ ssistant Secretary SANTA MARGARITA WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -17- APPROVED AS TO FORM: BOWIE, ARNESON, WILES & GIANNONE Legal Counsel - SERRA BY � / « �- Patricia B. Giannone CITY OF SAN JUAN CAPISTRANO By Mayor By City Clerk DANA POINT SANITARY DISTRICT By President/Vice-President By Secretary/Assistant Secretary SANTA MARGARITA WATER DISTRICT President/Vice- res ent BY (*cretuilAssistant Secretary BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -17- i MOUL'TON NIGUE W TER 4WTWCT ' By President/Vice-Presi nt By r ecretary/Assistant retary CAPISTRANO BEACH WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -1 g- MOULTON NIGUEL WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary CAPISTRANO BEACH WATER DISTRICT President/Vice-Presi e B Secretary/Assist t Secretary BA W&G/PBG/sb/42500.08 17005 N 2.27-5/20/98-Final -18- SOUTH EAST REGIONAL RECLAMATION AUTHORITY PC 2 COST ALLOCATION F.Y.1995/99 BUDGET TASK LIQUIDS SOLIDS COMMON NO. ITEM-DESCRIPTION % 0/. % E COSTS 1-9 eraownel 8 Bene is --4l--2-5W—V4-6-4,893 36. 5 09,60 22.40 o I 5252,3991 Z51,1Ztj,UUU 10 (Electricity 65.00%1 247,000 25.00% 95,000 I 10.00% '. 38,000 380,000 11 ��NaturalGas 65.00% 5,850 25.00%I 2,250 10.00%; 900! 9,000 12 ,Water i 10.00% I. 1,600 80.00% 12,800 10.00%1 1,600' 16,000 13 Telephone 41.25%1 1,155 36.35% 1,0181 22.40%1 6271 2,800 15 ,,Chlorine 100.00% 12,0001 0.00% 01 0.00%1 01 12,000 16 'Polymer 0.00% 0 100.00% 75,000 0.00% 0 75,000 17 .Ferrous Chloride 0.00% 01 100.00% 40,0001 0.00% 0 40,000 18 ,Odor Control 15.00% 2,775:: 85.00% 15,725 0.00% 01 18,500 19 Other Chemicals 50.00% 1,600 50.00% 1,600 0.00% 0 3,200 20 !Lab Services 50.00% 6,000 50.00% 6,000 0.00% 0 12,000 21-A I��Grit Dumping 1 0.00%1 0 100.00% 25,000 0.00%1 01 25,000 21-8 ',Sludge Hauling&Dumping 0.00% 0 100.00% 356,500 0-00%' 0 356,500 22 Landscape Maintenance 0.00% 0 0.00% 0 100.00% 01 17,000 23 Engineering-Routine Services 18.75% 7,500, 17,00 18.75% 7,500 62.50% 25,0001 40,000 25 !Audit-CPA 0.00% 01 0.00% 01 100.00% 7,0001 7,DOO 26 Secretarial 0.00% 0 0.00%1 0 100.00% 3,2001 3,200 27 Legal 0.00%1 0 0.00% 0 100.00% 15,000 15,000 29-A IIContrect Serv.-Generetors/SWPS 67.00% 3,350 0.00%, 0 33.00% 1,650, 5.000 29-8 Contract Serv.-Instrumentation 50.00% 5,800 50.00% 5,800 0.00% 0 11,600 29-C ,Contract Serv.-Phone System 0.00% 0 0.00% 0 100.00% 2,700 2,700 29-D 'Contract Serv.-Janitorial 0.00% 0 0.00% 0 100.00%1 6,500 6,500 29-E :Contract Serv.-Digester Cleaning 50.00% 15,0001 50.00% 15,000 0.00%I 0 30,000 31-A 'Vehicle Serv.-Small Vehicles 41.25% 2,4711 36.35% 2,181 22.40% 1,344 I 6,000 31-B Vehicle Serv.-Diesel Tractors 0.00% 0 100.00% 7,000 0.00% 0 7,000 32 Miscellaneous Expense 41.25% 1,238 36.35% 1,090 22.40%1 6721 3,000 33-A lOffice Supplies-Paper 41.25% 1,815 36.35% 1,599 22.40% 986 I 4,400 33-B Office Supplies-Personnel 41.25% 1,856 36.35% 1,636 22.40% 1,008 4,500 33-0 :Office Supplies-Janitorial 41.25% 660 36.35% 582 22.40% 358 1,600 34Ofice Equip.-Lease 8 Maintenance 0.00% 0 1 0.00% 0 100.0091 2,000 2,000 35 Petroleum Products 80.00% 9,2801 20.00% 2,320, 0.00% OI 11,600 36 ''Uniforms 41.25% 4,9501 36.35% 4,3621 2240%1 2,6881 12,000 37-A 11 Fuel-Vehicles&Small Engines 41.25% 1,6501 36.35% 1,4541 22.40%1 8961 4,000 37-8 ',Fuel-Diesel Sludge Trucks 0.00% 0 100.00% 1,2001 0.00% 01 1,200 39 'Iinsurance 0.00% 0 0.00% O 100.00% 70,0001 70,000 40 !Small Tools&Supplies 41.25% 6,600 36.35% 5,816 22.40% 3,5841 16,000 41-A Maintenance-Equipment&Facilities 0.00% 0 100.00% 101,000 0.00% 0 i 101,000 41-B Maintenance-Equipment&Facilities 100.00%1 90,000 0.00% 0 0.00% 01 90,000 41-C Maintenance-Equipment&Facilities 0.00% 0 0.00% 0 100.00% 8,700 8,700 42 ,TrashPickup 41.25% 330 36.35% 291 22.40% 179 800 43 Safety Supplies 41.25% 5,3631 36.35% 4,725 22.40% 2.9121 13,000 44 Equipment Rental 46.00% 1,6101 44.00% 1,540 10.00% 350 3,500 45 ',Advertising 50.00% 5001 50.00% 500 0.00%1 01 1,000 46 ITravel&Meetings 41.25% 1,4441 36.35% 1,272 22.40%I 7841 3,500 47 '''Training 41.25% 2,0621 36.35% 1,818 22.40% 1,1201 5,000 48 Laboratory Supplies 50.00% 7,0001 50.00% 7,0001 0.00%I O 14,000 50 IOfficeFurniture 0.00% 01 0.00% 01 100.00%i 7,500 7,500 51 'iPermits 0.00% 0 0.00% O 100.00% 10,1001, 10,100 52-A Admin.8 Ops. Bldg. Revenue Program 100.00% 88,200 0.00% 0 0.00% 0 88,200 53 '.Membership Dues&Fees 1 0.00% 0 0.00% 0 100.00% 5,700 5,700 54 (Press Belts 0.00% o 100.00% 18,000 0.00% 01 18,000 69 ,Administration j 41.25% 63,856 36.35%I 56,2691 22.40% 34,675' 154,800 75 .Data Processing 1 41.25% 2,888 36.35% 2,544 22.40% 1,568 i 7,000 76 Loan Repayment-PC 1611 0.00% 0 100.00% 34,500 0.00% 01 34,500 97 Replacement/Rehabilitation ! 21.18% 18,000 68.23% 58,000 10.59% 9,000 85,000 99 Capital Equipment j 37.11%1 18,000 34.02%, 16,500 28.87% 14,000 48,500 Z Contin an 50.00%1 100,000 50.00%I 100,0001 0.00%1 0 200,000 GRAND TOTALS E1 204 300 Et 502 000 5551 700 E3 258 000 Exhibit A-1 0 SOUTH EAST REGIONAL RECLAMATION AUTHORITY PC 2 COST ALLOCATION F.Y.1998199 BUDGET TASK, LIQUIDS SOLIDS COMMON NO. ITEM-DESCRIPTION % % % COSTS 1-9 Personnel&Benefits 41.25%, $464,8931 35.35%, 09,6 22.40 252,399 1,126,900 10 Electricity 65.00% 247,0001 25.00%1 95,0001 10.00%, 38,000 380,000 11 Natural Gas 65.00% 5,8501 25.00% 2,250 j 10.00%, 900, 9,000 12 'Water I 10.00%1 1,6001 80.00% 12,8001 10.00%1 1,6001 16,000 13 Telephone 41.25%I 1,155 36.35°h 1,018 22.40% 6271 2,800 15 Chlorine 100.00%1 12,000 0.00% 0 0.00% 0• 12,000 16 Polymer 0.00% 01 100.00%1 75,000 0.00% 01 75,000 17 Ferrous Chloride 0.00% 0 100.00% 40,0001 0.00%1 01 40,000 18 Odor Control 15.00%! 2,775 85.00% 15,7251 0.00%1 01 18,500 19 Other Chemicals 50.00% 1,600 50.00% 1,6001 0.00%1 01 3,200 20 iLab Services 50.00% 6,000 50.00°h 6,000 0.00% 01 12,000 21-A �IGritDumping 0.00% 0 100.00% 25,000 0 o%i 01 25,000 21-B 'Sludge Hauling&Dumping 0.00% 0 100.00% 356,500 0.00%1 01 356,500 22 Landscape Maintenance 0.00% 0 0.00% 0 100.00%l 17,000 1 17,000 23 Engineering-Routine Services 1 18.75% 7,500 18.75% 7,5001 62.50%1 25,0001 40,000 25 IAudd-CPA 0.00% 0! 0.00% 0! 100.00%1 7,0001 7,000 26 'Secretarial 0.00% 01 0.00% 01 100.00% 3,200; 3,200 27 ',Legal 0.00% 0I 0.00% 01 100.00% 15,0001 15,000 29-A '1Contract Serv.-Generators/SWPS 67.00% 3,3501 0.00% 0 33.00% 1,650 I 5,000 29-8 Contract Serv.-Instrumentation 50.00% 5,8001 50.00% 5,800 i 0.00% 01 11,600 29-C (Contract Serv. -Phone System 0.00% 0 0.00% 0 100.00% 2,7001 2,700 29-D Contract Serv.-Janitorial 0.00% 0 0.00% 0 100.00% 6,500 6,500 29-E Contract Serv.-Digester Cleaning 1 50.00% 15,000 50.00% 15,000 0.00% 01 30,000 31-A Vehicle Serv.-Small Vehicles 41.25% 2,475 36.35% 2,181 22.40% 1,3441 6,000 31-B Vehicle Serv.-Diesel Tractors 0.00% 0 100.00% 7,000 0.00% 0 I 7,000 32 Miscellaneous Expense 41.25% 1,238 36.35% 1,090 22.40% 6721 3,000 33-A Office Supplies-Paper 41.25% 1,815 36.35% 1,599 22.40% 9861 4,400 33-B Office Supplies-Personnel 41.25% 1,856 36.35% 1,636 22.40% 1,0081 4,500 33-C Office Supplies-Janitorial 41.25% 660 36.35% 582 22.40% 3581 1,600 34 'Office Equip.-Lease&Maintenance 0.00°- 0 0.00% Q' 100.00% 2,000 j 2,000 35 !,Petroleum Products 80.00% 9,280 20.00% 2,320 0.00% 0'1 11,600 36 !Uniforms 41.25% 4,950 36.35% 4,362 22.40% 2,6881 12,000 37-A !Fuel -Vehicles&Small Engines 41.25% 1,650 36.35% 1,454 22.40% 8961 4,000 37-B !Fuel-Diesel Sludge Trucks 0.00% 01 100.00% 1,200 0.00% 01 1,200 39 Insurance 0.00% 01 0.00% 0 100.00%' 70,000 70,000 40 Small Tools&Supplies 41.25% 6,6001 36.35% 5,816 22.40% 3,5841 16,000 41-A Maintenance-Equipment&Facilities 0.00% 01 100.00% 101,000 0.00% 01 101,000 41-B Maintenance-Equipment&Facilities 100.00% 90,000 0.00% 0 0.00% 0 90,000 41-C Maintenance-Equipment&Facilities 0.00% 0 0.00% 0 100.00% 8,700 8,700 42 'Trash Pickup 41.25% 330 36.35% 291 22.40% 179 800 43 -Safety Supplies 41.25% 5,363 36.35% 4,725 22.40% 2,912 1 13,000 44 :Equipment Rental 46.00% 1,610 44.00% 1,540 10.00% 3501 3,500 45 11Advertising 50.00% 5001 50.00% 500 0.00% 01 1,000 46 (Travel&Meefings 41.25% 1,4441 36.35% 1,272' 22.40% 7841 3.500 47 Training 41.25% 2,0621 36.35% 1,8181 22.40% 1,1201 5,000 48 Laboratory Supplies 50.00% 7,0001, 50.00% 7,000 0.00%1 01, 14,000 50 Office Fumiture 0.00% 0 0.00%. 0 100.00% 7,500 7,500 51 Permits 0.00% 01 0.00% 0 100.00% 10,1001 10,100 52-A '1Admin.&Ops. Bldg.Revenue Program 100.00% 88,200 11 0.00% 0 0.00% 01 88,200 53 (Membership Dues&Fees 0.00% 01 0.00% 0 100.00% 5,7001 5,700 54 Press Belts 0.00% 0 100.00% 18,000 0.00% 01 18,000 69 'Administration 41.25% 63,8561 36.35% 56,269 22.40% 34,6751 154,800 75 Data Processing 1 41.25% 2,888 36.35% 2,544 22.40% 1,568 7,000 76 ;Loan Repayment-PC 1611 0.00% 0 100.00% 34,500 0.00% 0,I 34,500 97 ReplaoemenURehabilitatlon 21.18% 18,000 68.23% 58,000 10.59% 9,000 85,000 99 'Capital Equipment 37.11% 18,0001 34.02% 16,500 28.87% 14,0001 48,500 Z Contin en 50.00% 100,0001 50.00% 100,000 0.00% 0' 200,000 GRAND TOTALS $1,204,300 $1,502,000 5561 700 1 $3 258 000 SOUTH EAST REGIONAL RECLAMATION AUTHORITY P.C.NO.2•LIQUIDS COST ALLOCATION F.Y. 1998/99 BUDGET ALLOCATION OF LIQUIDS COSTA Ownership Ownership Current Current Unused Unused Capacity District MGD Percent Flow MGD Flow% Capacity MGD Percent C13WD1.501 11.54%1 0.81 8.23% 0.191, 6.03% CSJC 11 4.001 30.77%1 3.36 34.11%1 0.811 25.71% DPSD 2.251 17.31%1 1.60 16.24% 0.731 23.18% MNWD 3.00 23.07%1 1.60 16.24% 1.40; 44.45% SMWD 2.25 17.31%' 2.48 25.18% 0.021 0.63% 13.00 100.00% 9.85 100.00% 3.151 100.00% Unused Standby Charge Current Remaining Total Capacity ! Based on Flow Amount Based Liquids Resulting District Percent Unused Capacity Percent on Current Flow Costs Percent CBWD 6.03% $2,894 8.23%1 $89,916 $92,810 7.71% CSJC 25.71% 12,3361 34.11% 394,314 406,650 33.77% DPSD 23.18% 11,118 16.24% 190,352 201,470 16.73% MNWD 44.45% 21,3221 16.24% 195,968 217,2901 18.04% SMWD 0.63% 305 25.18% 285,775 286,080 23.75% 100.00X $47 975 100.00% $1 158 325 $1 204 300 100.00°h [1]NOTE: Unused Capacity Calculation as Follows: (3.15 mgd X$15,230 standby charge/mgd $47,975) Current Now equals the avenge flow to the SERRA Plant spread out over twelve months. SOUTH EAST REGIONAL RECLAMATION AUTHORITY P.C.NO.2-SOLIDS COST ALLOCATION F.Y.1998199 BUDGET ALLOCATION OF SOLIDS COSTS Current Current Unused Unused Ownership Ownership j Loadings Loadings Capacity Capacity District MGD Percent MGD' Percent MGD Percent CBWD 1.501 8.11W 0.85 7.52%, 0.65 9.03%i CSJC 5.5530.00%1 3.36 29.66%i 2.19 30.54%1 DPSD 2.2011 11.89%1 1.60 14.12%1 0.60 8.37%1 MNWD 4.001 21.62%1 2.161 19.10% 1.84 25.61%1 SMWD 1 5.251 28.38% 3.351 29.60% 1.90 26.45% 18.50 100.00% 11.33 100.00% 7.17 100.00%. 1 Unused Standby Charge Current Remaining Amt PC 18 Loan Pmt Total Capacity Based on Loading Based on Based on Solids Resulting District Percent Unused Capacity Percent Cur.Leading Ownership Costs Percent CBWD 9.03% $6,930 7.52% $104,612 $0 $111,542 7.43% CSJC 30.54%� 23,432 29.66% 412,501 8,015 443,9481 29.56% DPSD 8.37% 6,420 14.12%1 196,431 4,105 206,9561 13.78% MNWD 25.61°h 19,652 19.10°h 265,581 11,190 296,423 19.74% SMWD 26.45% 20,296 29.60%1 411,645 11,190 443,131- __29.50% 100.00% $76,730, 100.00% $1.390.770 $34 500 1 502 000 100.00% [t]NOTE: Unused Capacity Calculation as Follows: (7.17 mgd X$10,700 standby charge/mgd $76,730) Calculation of Solids Loading as Follows: CURRENT1 FLOW BODISS AVG.LBS. LOADINGS MGD BOD SS TOTAL PER MGD MGD CBWD 0.81 1,635 1,919 3,554 4,387 0.85 CSJC 3.36 6,781 7,958 14,739 4,170 3.36 DPSD 1.60 3,389 3,283 6,672 4,170 1.60 MNWD 1.60 3,870 5,151 9,021 5,638 2.16 SMWD 2.48 5,998 7,984 13,982 5,638 3.35 9.85 21,673 25 295 47,9681 11.33 AVG.LBS.PERM D 4170 SOUTH EAST REGIONAL RECLAMATION AUTHORITY COST ALLOCATION F.Y. 1998/99 ALLOCATION OF COMMON COSTS LIQUIDS 50.00% SOLIDS 50.00% 100.00% Total Ownership Amount Based ! OwnershipAmount Based Total Common District % Liquids Ownership % Solids Ownershl Common Costs I °/Wa CBWD 11.54%1 $21,2271 6.11% $14,92111 $36,148 6.55% CSJC 30.77% 88,430 30.00% 86,5021 174,9321 31.71% DPSD 17.31% 49,509 11.89% 32,795 82,3041 14.92% MNWD 23.07% 63,636 21.62% 59,621 123,257 22.34% SMWD 17.31% 53,048 28.38% 82,011 135,059 24.48% 100.00%i $275,850 100.00% $273,8501 $551,7001 100.00% SOUTH EAST REGIONAL RECLAMATION AUTHORITY PC 2 COST ALLOCATION F.Y. 1998/99 BUDGET Total Total Total Projected Total District Li uids Costs li Solids Costs Common Costs Bldg. Revenue ! Allocation CBWD $92,810 $111,542 $36,148 $01 $240,500 CSJC 406,650 443,948 174,932 (49,730 975,800 DPSD 201,470 206,956 82,304 (27,630 463,100 MNWD l 217,290 296,423 123,257 (33,170 603,800 SMWD 286,080 443,131 135,059 33,170 831,100 $1,204,3001 $1,502,000 $551,7001 ($143,7001 $3,114,300 Building Total Liquids I Solids Common i Revenue Allocation District Percentages Percentages Percentages Percentages Percentages CBWD 7.71%1 7.43% 6.55% 0.00% 7.72% CSJC 33.77% 29.56% 31.71% 34.61% 31.33% DPSD 16.73% 13.78% 14.92% 19.23% 14.87% MNWD 18.04°r6 19.74% 22.34% 23.08% 19.39% SMWD 23.75%I 29.50% 24.48% 23.08% 26.69% 100.00%1 100.00% 100.00% 100.00% 100.00% QUARTERLY INSTALLMENT SCHEDULE Due Due Due Due 07/01/98 10/01/98 01/01/99 04101199 Member 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter A ency i Total Billing Billing Billing Billing CBWD 1 $240,5001 $0 $60,120 $90,190 $90,190 CSJC 975,800 259,050 239,050 238,850 238,850 DPSD 463,100 118,825 109,645117,3151 117,315 MNWD 603,800 152,000 140,260 155,770 155,770 SMWD 831,100 248,700 229,500 176,450 176,450 Bldg. Rev. 143,700 0 0 143,700 0 $3,258,0001 $778 575 $7785751 $922,275 $778 575 SOUTH EAST REGIONAL RECLAMATION AUTHORITY PROJECT COMMITTEE NO. 2-TREATMENT PLANT CAPITAL PROJECTS BUDGET REVISION JULY 01, 1999 TASK' Budget F/Y98/99 Revised NO. ITEM -DESCRIPTION Through 06/30/98 Additions Budget AL IMPROVEMENT PROJECT(LIQUIDSI 27-L Legal $1,00011 $1,00011 $2,000 70-A Administration- (F/Y 1996/98) 25,000 0 25,000 70-A Administration-(F/Y 1998/99) 0 36,6001 36,600 96-C Odor Control Fac. Upgrade (Phase II) 1,286,0001, 0 1,286,000 96-D Odor Control Fac. Upgrade(Phase 11) Design/CM 196,000 0 196,000 96-C WAS System Upgrade-Construction 127,000 0 127,000 96-M WAS System Upgrade- Design/CM 31,000 0 31,000 97-C RAS System Upgrade-Construction 0 278,000 278,000 99-C Influent Flow Monitoring Stations-Construction 0 60,000 60,000 Z Contingency 0 61,400 61,400 TOTAL C.I.P. (LIQUIDS) 57.666.000 $437.000 $2,103,00 CAPITAL IMPROVEMENT PROJECT(SOLIDS) 27-S Legal-Solids $1,0001 $1,0001 $2,000 71-A Administration-(F/Y 1996/98) 16,500 0 16,500 71-A Administration-(F/Y 1998/99) 0 16,000 16,000 93-C Digester Dome Repairs(Digester No. 1) 147,000 0 147,000 93-D Digester Dome Repairs- Design (Digester No. 1) 8,000 0 8,000 93-M Digester Dome Repairs(CM) 10,00010'000 94-C Dewatering System Phase ll-Design/CM 0 200,000 200,000 96-C Electrical System Rehabilitation-Construction 0 140,000 140,000 98-C Dewatering System Phase I-Construction 450,000 0 450,000 98-M Dewatering System Phase I- Design/CM 75,0001 01 75,000 Z Contingency 300 1 "000 15,300 TOTAL C.I.P. (SOLIDS) $707,8001 $372,000 S1,079,80 GRAND TOTALS 1 52 373 800 $809,0001 $-3-,182,800 P.C.2 Budget Budget Total Member Liquids Solids Allocation Revision Revised Agency Percent Percent 07/01/98 Allocation Budget CBWD 11.54% 8.11% $0 $18,8001 $18,800 CSJC 30.77% 30.00% 817,770 277,780 1,095,550 DPSD 17.31% 11.89% 404,595 116,735 521,330 MNWD 23.07% 21.62% 537,475 182,435 719,910 SMWD 17.31% 28.38% 613,960 213,250 827,210 TOTAL 100.00% 100.00% $2,Y73,800 $809.0001 3182 800 Note:Only CSJC, MNWD, and SMWD are paying for task number 99-C. Exhibit A-2 AB :ct 4/3/73 • Draft 1973-2 AGREEMENT FOR ACQUISITION, USE, OPERATION, MAINTENANCE AND EXPANSION OF SEWAGE TREAT- MENT PLANT OF CITY OF SAN JUAN CAPISTRANO BY SOUTH EAST REGIONAL RECLAMATION AUTHORITY FOR AND ON BEHALF OF PROJECT COMMITTEE NO. 2 THIS AGREEMENT is made and entered into this .7- day of 1973 , by and between the SOUTH EAST REGIONAL REC&&TION AUTHORITY , an entity created by the Joint Powers Agree- ment , entitled "Joint Exercise of Powers Agreement Creating South East Regional Reclamation Authority - Orange County, California (SERRA) " dated March 9 , 1970 , entered into by the parties to that Agreement under the provisions of the Joint Exercise of Powers Act, Section 6500 and following of the Government Code , hereinafter in some instances referred to as "Authority" and the following parties : o� (`TWV nF CANT TTTTR nAnTCTnAT'n naft= in some instances referred to individually as "SJC" ; (b) DANA POINT SANITARY DISTRICT, hereinafter in some instances referred to individually as "DPSD" ; (c) MOULTON-NIGUEL WATER DISTRICT, hereinafter in some instances referred to individually as "MNWD" ; and (d) SANTA MARGARITA WATER DISTRICT, hereinafter rQ� in some instances referred to individually as "SMWD" ; �J W I T N E S S E T H WHEREAS , each of the above named entities is a party to the Joint Powers Agreement entitled "Joint Exercise of Powers Agreement Creating South East Regional Reclamation Authority -- Orange County , California (SERRA) " dated March 9 , 1970 , whereby -1- 4/3/73 the South East Regional Reclamation Authority was created, and formed for the purpose of providing waste water treatment, recla- mation, and to the extent necessary , disposal facilities , and WHEREAS , a Project Committee designated "Project Commit- tee No. 2 " (Acquisition and Expansion of San Juan Capistrano Treat- ment Plant) has been formed for the purpose of acquiring, operat- ing, maintaining and expanding the waste water treatment and recla- mation facilities of SJC, and WHEREAS , Authority proposed, concurrent with the execu- tion hereof , to enter into a lease agreement with DPSD relative to the existing outfall facilities of DPSD as well as an agreement for the acquisition of an additional on-shore portion of such facilities from SJC, which agreement also spells out the rights , c f the particz `aC:....i✓ i.Giui.1 VC Lo Lhl acquisition, operation, use , maintenance and expansion of such outfall facilities , which together with the acquisition of the treatment facilities provided for in this agreement will establish Authority as an operating entity for the purposes hereinabove set forth in the San Juan Basin, all as provided for in the Joint Powers Agreement hereinabove referred to, and WHEREAS , it is the desire of the California Regional Water Quality Control Board - San Diego Region, that Authority enter into an agreement at this time providing for the acquisition of the facilities of SJC prior to completion of expansion of such facilities to a total estimated capacity of 9 MGD hereinafter re- ferred to as "9 MGD" and become the operating entity therefor which it is determined can be done in. the manner herein set forth -2- thereby permitting Authority to complete expansion thereof to 9 MGD and to pursue , obtain and apportion in the manner herein provided, financial assistance from the State of California, the United States of America, or both; NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties hereto agree as follows : 1. Authority agrees to purchase , and SJC and DPSD agree to sell the sewage treatment facility and the property upon which it is situated, to the extent each has an interest therein, which property is more particularly described in Exhibit "A" hereto and by this reference is made a part hereof. It is acknowledged that SJC, pursuant to agreements with MNWD and SMD, has expanded its treatment facility to an estimated total capacity of 6 MGD and has substantially completed plans and specifications for further expan- sion thereof to 9 MGA. SJC agrees to pay all expenses in regard to the 6 MGD expansion. Upon receipt of the total amount to be paid to SJC for acquisition of the 6 MGD herein described treatment plant , site and equipment, SJC shall convey all such property to Authority. This amount shall be paid by Authority to SJC within ten (10) consecutive calendar days after completion of expansion of the facilities by Authority in the manner hereinafter provided to 9 MGD. The amount to be paid by Authority to SJC shall be $650 ,000 for the initial facilities constructed plus the actual cost of expanding that facility to a capacity of 6 MGD. The total estimated cost of the project to Authority, inclusive of the initial facility constructed is estimated to be $3 ,810 ,000 as reflected for purposes of explanation in Exhibit "B" hereto, which document -3- is by this reference made a part hereof. Each of the parties hereto agrees , to pay its share of such costs as determined on the basis of the percentages shown on page 3 of Exhibit "B" to this agreement. 2. Each party to this agreement to the extent that it has an interest therein, agrees to convey the real property described in Exhibit "A" hereto to Authority for the benefit of Project Committee No. 2 and its members , subject only to the items set forth on Exhibit "C" hereto, which document is by this refer- ence made a part hereof. 3 . In addition to the purchase price of the initial facility of SJC in the amount of $650 ,000 referred to as the exist- ing Plant, Authority shall pay to SJC as the purchase price of the -00 . 00 . 1J1Q114- J1LC I..11C JUl{{ V1 Yl.! / ,JVj131J LLlll{.J 411E J.1U11 $71,269 . 00 to SJC, and $86 ,231.00 to DPSD. In the event the site and facilities described herein are used for future expansion , the parties who pay the purchase price herein provided for shall be equitably reimbursed for their investment at that time . Also , Authority shall purchase from SJC for the sum of $6 ,000 . 00 , the miscellaneous supplies and equipment described in Exhibit "D" part or are to be repaid on a basis agreed to by SJC, MNWD and SMWD. It is acknowledged that grant funds from the state and federal government relative to the 6 MGD expansion of the facili- ties will be received by SJC and paid out in full subsequent to completion of such construction. Such funds shall be allocated on the basis specified in such grants or as agreed to by SJC, MNWD and SMWD. 5 . Expansion of Facilities to 9 MGD. Authority agrees that upon the execution of this agreement it will initiate and dili- gently pursue to completion the expansion of the facilities to a total estimated design capacity of 9 MGD in accordance with the preliminary plans and specifications prepared for such purposes by Lowry & Associates , a copy of which is on file in the office of Lowry & Associates , 121 East Washington , Santa Ana, California, and by this reterence incorporated herein . MNWD, SMWD, SJC, and DPSD agree to deposit for such purposes the amounts specified on page 2 of Exhibit "B" as Phase "A" within thirty (30) consecutive calendar days after the execution of this agreement. These funds shall be used to reimburse SJC and others for costs incurred to date relative to such expansion and to pursue completion of such construction and commitments for any available grant funds at the earliest possible date . In addition to the amount hereinabove specified for Phase "A" Planning and Design of the proposed expan- sion to 9 MGD, each party agrees to deposit within ten (10) con- secutive calendar days after receipt of bids therefor their pro- portionate share of the costs of constructing the additional 3 MGD capacity based on the percentages shown on page 4 of Exhibit "B" -5- to this Agreement. A condition precedent to this obligation shall be the receipt by SJC of not less than fifty percent (50%) of the grant funds relative to the treatment plant expan- sion to 6 MGD by SJC for the benefit of SJC, MNWD and SMWD. Upon completion of the acquisition and expansion of the facilities to 9 MGD the total cost to Authority of such acquisition and expan- sion of the facilities to 9 MGD shall be borne by the parties to this Agreement on the basis specified on page 4 of Exhibit "B" to this Agreement. The following percentages shall determine the capacity of each of the designated parties in the facilities upon completion of expansion of the facilities to 9 MGD: Percentage Estimated of Capacity MGD of of 9 MGD Capacity MNWD 50 .00% 4 . 5 MGD SMWD 11 . 11% 1. 0 MGD SJC 97 7R% ? . 5 norm DPSD 11 . 11% 1.0 MGD T O T A L 100 .00% 9 .0 MGD It is agreed that Authority will seek to obtain grant funds relative to the 3 MGD expansion which shall be allocated among the above designated parties on the basis that they are eligible for such funds or in the absence of such determination by the state or federal government on the following percentages : 3 MGD Percentage for Estimated Allocating 3 Capacity MGD Grant Funds MNWD .5 MGD 16 . 67% SJC 1. 0 MGD 33 . 33% SMWD .5 MGD 16 . 67% DPSD 1.0 MGD 33 . 33% T O T A L 3.0 MGD 100 . 00% SCJ agrees to convey to Authority all plans , specifications and working drawings for such 3 MGD expansion, and Authority -6- agrees to pay to SJC the costs incurred in regard thereto which is estimated to be the sum of $ Such costs shall be determined as of the date the amount herein specified is tendered by Authority to SJC. SJC and DPSD to the extent necessary, authorize Authority at the earliest possible date to take all actions necessary to cause the facilities to be expanded to 9 MGD. 6 . Final Accounting. Within ninety (90) consecutive calendar days following acquisition of the hereinabove described facilities, and completion of construction expanding the herein- above described facilities to a capacity of 9 MGD, costs incurred and the allocation thereof to the parties to this agreement in the manner provided for herein shall be verified by an independent audit performed by a certified public accountant. The audit thus per- formed shall be approved by the Authority and the parties to this agreement. Any remaining funds shall be distributed to the parties to this agreement which deposited those funds. In the event that it is necessary that any party to this agreement deposit additional funds by reason of their proportionate share of the costs of acquir- ing the facility described herein or expanding such facilities to a capacity of 9 MGD, such amount shall be deposited within thirty (30) consecutive calendar days after approval of the audit herein provided for. 7. Sale of Effluent. Each of the parties hereto acknow- ledges and agrees that one of the primary objectives of Authority is reclamation and the subsequent reuse for beneficial purposes of the sewage and wastewater transmitted to Authority for treatment , reclamation, and disposal . Authority agrees to pursue such objec- tive to the maximum degree possible , and to credit the expense of -7- operating and maintaining the treatment facilities with the net profit from any such operations . Net profit as the term is used herein shall not include any expense for capital improvements un- less agreed to by the parties to this agreement. Any such possi- bilities and profits shall be apportioned among the parties hereto in a given year on the same basis as operating and maintenance expenses were borne . 8. Operating Costs . It is further agreed that each of the parties hereto, in addition to obligations otherwise pro- vided for herein will pay to Authority its proportionate share of the operation and maintenance costs of the treatment plant after the completion of acquisition and expansion. Authority shall bill , and each of the parties to this agreement shall pay, its propor- tionate share of all expenses , including operating and maintaining the treatment plant. Except as hereinafter provided, such costs shall be allocated based on the average flow through the treatment plant, determined on the basis of a six (6) month period. These periods shall run from January 1 and July 1 of each calendar year. Any periods of less than six (6) months shall be prorated on the basis of a total period of one hundred eighty (180) days . It is agreed that Authority may establish an operating budget for such payments and request a deposit in advance equal to the estimated share of such expenses of each party hereto for such period of six (6) months . In regard to such costs of operation, maintenance and repairs , the following is set forth and agreed to by each of the parties to this agreement in order to define some of the terms to govern the manner in which such costs shall be borne and to establish at this time procedures therefor. Unless otherwise agreed, the costs of replacing any portion of the treatment plant or equipment having a life of five (5) years or longer, and any -8- additional facilities or equipment costing in excess of ONE THOUS- AND ($1 , 000 .00) DOLLARS ,shall be allocated on the basis of the percentages hereinabove set forth for the allocation of the acqui- sition costs as opposed to the average semi-annual use of the treatment plant . For the purpose of this section, maintenance and operating costs shall mean the necessary costs of maintaining and operating the treatment plant based on sound accounting prin- ciples , including expenses necessary to maintain and preserve the treatment plant in good repair and working order, as well as insur- ance , taxes , and any costs attributable to its maintenance and opera- tion. It specifically does not include depreciation or any obsoles- cent charges or any reserves therefor, or amortization of intan- gibles or other bookkeeping entries of a similar nature . Authority shall install metering devices at the expense of the respective parties for the purpose of determining the amount of sewage being transmitted to Authority for treatment. It is agreed that the actual costs of operation and maintenance shall be reviewed at least quarterly , including a comparison to the project budget required by Section 19 of the Joint Powers Agreement pursuant to which Authority was created and exists . 9 . Miscellaneous . (i) Notice . Any notice or instrument required to be given or delivered by depositing the same in any United States Post Office , registered or certified, postage prepaid, addressed to: SOUTH EAST REGIONAL RECLAMATION AUTHORITY 2415 South Birch Santa Ana, California 92707 CITY OF SAN JUAN CPPISTR NO 32400 Paseo Adelanto San Juan Capistrano, California -9- DANA POINT SANITARY DISTRICT P .O. Box 571 Dana Point , California 92629 MOULTON-NIGUEL WATER DISTRICT 27281 Aliso Creek Road Laguna Niguel , California 92677 SANTA MARGARITA WATER DISTRICT 401 Civic Center Drive West Santa Ana, California 92702 , shall be deemed to have been received by the party to whom the same is addressed at the expiration of forty-eight (48) hours after deposit of the same in the United Stdtes Post Office for transmission by registered or certified mail as aforesaid. (ii) Attorney' s Fees . In the event that it is necessary to enforce any of the terms of this agreement, the pre- vailing party shall , in addition to any other relief and recovery , be entitled to recover all costs , including a reasonable amount for attorney' s fees . (iii) Arbitration. Any controversy or claim be- tween the parties to this agreement including, but not by way of limitation, any claims , disputes , demands , differences , controver- sies , or misunderstandings arising under, out of, or in relation to this contract, or any alleged breach thereof, shall be submitted to and determined by arbitration. To the extent not inconsistent herewith , the rules of the American Arbitration Association shall apply. The party desiring to initiate arbitration shall give notice of its intention to arbitrate to the other party to this agreement. ' Such notice shall designate such other parties , if any , as the initiating party intends to have bound by any award made therein. Within twenty (20) days of the service of the ini- tial demand for arbitration, the American Arbitration Association, -10- hereinafter referred to as "AAA" shall submit simultaneously to the initiating party and to all parties , if any, named as respond- ents or filing a response therein, an identical list of names of persons chosen from the AAA National Panel of Arbitrators , which persons shall be , to the extent possible , men first in the field of waste water disposal and reclamation as well as public law. Each party to the dispute shall have seven (7) days from the mailing date in which to cross off any names to which he objects , number the remaining names indicating the order of his preference , and return the list to the AAA. If a party does not return the list within the time specified, all persons named therein shall be deemed acceptable . From among the persons who have been ap- proved on both lists , in accordance with the designated order of mutual preference , the AAA shall invite the acceptance of an arbi- tration panel consisting of three persons to serve. If the parties fail to agree upon a panel of three persons from those designated or, if for any reason an acceptable panel of three arbitrators is unable to act, or if for any other reason the appointment can- not be made from the submitted list, the AAA shall have the power to make the appointment of the panel of three arbitrators from other members of the list originally submitted, without the submis- sion of an additional list . The panel of arbitrators shall determine the rights of the parties in accordance with the law, and the award shall be subject to review as to the panel ' s application of the law by any court having jurisdiction thereof, whether or not any mistake of the law shall appear upon the face of the award. As to all ques- -11- tions of facts, however, the determination of the arbitrators shall be binding upon all parties and shall be final. Any party shall be entitled to written findings of fact and conclusions of law as to all issues determined by the award. Subject to the above limitations , the award shall be binding upon all parties to the arbitration and judgment upon the award rendered by the arbitra- tors may be entered in any court having jurisdiction thereof . The arbitrators may, in their discretion , as part of the arbitration award, impose upon any one party or allocate among two or more of the parties the liability for the arbitration fees and expenses . Such allocable fees may- include the initial administration fees , fees for second and subsequent hearings , post- ponement fees , and overtime fees . Allocable expenses may include the expenses of producing witnesses , the cost of stenographic rec- v riiv , %]'i.:; :'f ail' �.i uia.�.:t it.�:a , ""V'l vi Lilo trators and Tribunal Administrator, the expenses of any witnesses, the costs of any proofs produced at the direct request of the arbi- trators , and any other expenses relating directly to the arbitra- tion. In the event of the failure of the arbitrators to provide for the allocation of such fees and expenses , the arbitration fees shall be divided equally between the parties and the expenses shall be borne by the party incurring them. 10 . Termination. The term hereof shall be for a period of fifty (50) years and may be extended for a like period or res- cinded or modified by the unanimous consent of all parties to this agreement. 11 . Restrictions on _Discharge . Each of the parties hereto agrees that it shall not deliver to the treatment plant . -12-- any material or substance which directly or indirectly, or in combination with any, other material or substance delivered to the treatment plant of Authority by others to this agreement, will prevent Authority from complying with the discharge requirements established from time to time by the California Regional Water Quality Control Board - San Diego Region, the Environmental Protec- tion Agency, or any other entity or body having jurisdiction as to any such discharge . Authority may establish reasonable Rules and Regulations relative thereto from time to time which each party hereto agrees shall be applicable to the discharge of sewage to the facilities for treatment or reclamation. Additionally , it is agreed that neither the execution of this agreement nor the delivery to Authority of sewage or waste water for treatment and reclamation in the absence of an express agreement is a dedication for any pur- poses of such sewage and waste water. A party may deliver sewage to the extent of its entitlement to capacity in the facilities or provide other means for its waste water treatment and reclamation needs . Any sewage or waste water delivered to the facilities des- cribed herein shall originate from within the boundaries of a party to this agreement, or their successor, as such may be estab- lished from time to time . 12 . Employees of Authority. In the event it is decided to have Authority operate the facilities herein described, Authority shall , as a first priority, employ operating personnel of SJC and DPSD to the extent that such employees make application for any such position. It is intended to the extent acquisition and demoli- -13- tion of the SJC and DPSD facilities deletes the necessity for their present employment that such persons will be provided with similar employment by Authority. The terms , conditions and compen- sation in any such instances shall be determined by Authority. 13. Interim Use of Surplus Capacity . It is agreed by the parties to this Agreement that if at the point in time when MNWD, SMWD, SJC or DPSD request that Authority construct additional treatment facilities there is unused capacity in existing facilities which might be used on an interim basis thereby deferring such con- struction, any surplus capacity may be used for this purpose on a fair and equitable basis . This determination shall be made by the Board of Authority by vote of the members of the Board repre- senting MNWD, SMWD, SJC and DPSD. Such determination shall be sub- ject to the approval of the governing body of each of the above _1 ..h �.il t L.., ..rte ^t.:1 . : thh..l d. .. .� :v .�._. ,.... ..........- .�l ..- _ Any such decision as to the availability of unused capacity shall take into consideration presently existing sewage flow, construction in progress , approved tentative tract maps , established general and precise land use plans and the estimated period of time needed to construct , complete , and place in operation additional treatment and other facilities to provide for the treatment, reclamation and disposal of additional sewage and waste water from such entities . Such decision shall include but not be limited to costs of repair, replacement, depreciation, and a reasonable return on money actually invested , as well as adequate provisions to insure that such con- struction will be permitted to occur and funds will be available to construct additional facilities at a later date , thereby termin- ating the need for interim use of such surplus capacity. Funds re- ceived by Authority for such interim use shall be prorated among the parties whose unused capacity is being so used. -14- 1 14 . Approval by State Treasurer. This Agreement shall become effective upon the date that it and any related agreements are approved by the Treasurer of the State of California. It is agreed that upon execution hereof, both MNWD and SMWD will request such approval. IN WITNESS WHEREOF, the parties to this agreement have executed it the day and year first hereinabove written. SOUT EAST REGIO RE TION AUTHORITY Chairm n �J Secretary CIT SAN JUAN CAPISTRANO a r ity Clerk DANA POINT SANI RY D STRICT f President Secretary MOULTON-NIGUEL WATER DISTRICT esi t Sec ary SANTA)IARGARITA WATER DISTRICT Pr ' dent 1 Se retar -15- OMI 14YA� 4-3300 " RLU.I GYvnv 6-9594 LICENSED LAND SURVEYOR 352 THIRD STREET O , . . . . ... ,LACUNA BEACH ". 0 •!� ' " : CALIFORNIA April 21, 1972 LEGAL DESCRIPTIONS OY PORTIONS OF THE DANA POINT SANITARY DIGTRICT PnOi al'S. Oil DEL OBISFO ..'tr2...t , That portion of the Rancho Boca De La Playa, in the Count;; of Orange State of Californla, as per map recorded June 29, ISM in 15001-. 4, 7agco 118 and 119 of Patents in the Office of the County Recorder of Loc Angeles County, described au follovst BeCinning at the Intersection of the Southeasterly Line of Al Obispo Strut, being 80,00 feet vide, formerly known as 2: Kinley •Avenue, an Quoribed in a deed to the County of Orange recorded on April 14M, 7926 , in Boot, 63(, Page 363 of. 10cdr,, Vith c line parallel with and :3ou ywesterly 550,00,feet Mnsurcd At r1zht angler to the centerline of Victoria Avenue ao duap-ibcd in the deed to the County of Oranre . reoordo(l on . 't- 1v;. 2n }3D01'. ',,jA1.� pS�.-„ 42, of �)!>L;C�F, ; i�"CnCD .`'pit.il 60 V t 35" st parallel to sale, centerline 905.06 feet ; thence North 170 55' 53" Oat 252.66 feet)• thence ''forth 100 43 ' 50" East; 21.25 feet , thence North 100 ),11 12" 'Fant 173.11 feet ; thence North .680 54' 35" Went 619 .96 feet ; thence south 210 51 25" Test 3.35. 00 feel. ; thence North 680 541 35" West 215 .81 feet ; thence South 350 521 01" hest 67. 22 feet to the point of Beginning.. t-?K_.f a -1653 Il n i;, 01,4,rh L. S. K23064 March 26, 1973 Page 1 EXHIBIT 'T' REVISED 6U7GET PROJECT COMMITTH NO. 2 • REGIO14AL TREATME;AT PLANT 6.0 mad �. 3.0 mgd. Expansion . Phase A Phase B Project Costs Planning and Design Construction Total (1) Construction $ 2,700,000 1 ,230,000 1 ,230,000 (2) Technical Services 260,000 100,000 20,000 120,000 7 , (3) Legal 7,000 17,000 17,600 (4) Administrative 5,000 2,000 3,000 5,000 (5) Contingency 25,000 10,000 40,000 50,000 (6) Plant Site 157,500 (7) Equipment Inventory 6,000 (8) Existing Plant 650,000 Totals 3,810,500 129,000 1 ,293,000 1 ,422,000 Existing Grant (11 2,087,200 Potential Grant (2) 2,397,600 1 ,235,000 (3) -r, Potential Net Cost 1 ,412,900 187,000 (1) . Based on Approved Eligible Amount per letter of State Water Resources Control Board dated Aug. 24, 1972. (2) Based on application for increase in Project Eligible Amount from $ 2,609,000 to $ 2,997,000. (3) Grant assumed to be 87.5% of Eligible Amount March 26, 1973 Page 2 EXHIBIT "B" ICont 'd) STEP 1 FUNDS TO BE MU OS MD WITH SERRA FOR 3 .0 MGD EXPANSION PROJECT (mgd) Agency Capacity Percentage Phase A Phase B Total • Sic 1 .0 33.33 43,000 431 ,000 474,000 DPSD 1 .0 33.33 43,000 431 ,000 474,000 MNWD 0.5 16.67 21 ,500 215,500 237,000 l SMWD 0.5 16.67 21 ,500 215,500 237,000 N TOTALS 3.0 100.00 129,000 1 ,293,000 1 ,422,000 11nrch z6, 1973 page 3 EXIIIo1T "R" (Cont'd) 'STEP 2 FINALIZATION OF 6.0 iIGD 'PROJECT Funds on Total Grant Net Deposit Surplus or Agency Capacity Percentage Cost Funds Cost With SJC Deficit SJC 1 .5 25.00 . g47,125 595,000 352,.125 228,500 (123 ,625) DPSD 0 0 22,000 17,600 4,40o. . 48,200 43,800 11Nt,�D tl.b 66.67 ' 2,525,793 1 ,586,746 - 939,047 2,074,908 1 ,135,861 SMWD 0.5 8.33' 315,582 19.8,254 i 117,328 253,412 136,084 TOTALS 6.0 100.00 . 3,810,500. 2,397,600 1 ,412,900 2,605,020 1 ,1920120 March 26, 1973 Paae 4 'EXHIBIT "D" (Ccht'd) - :STEP 3 "FINAL "COST ALLOCATION AFTER 'COMPLETION OF 9:0 MGD 'PLANT (mgd) Total Agency "Capacity 'Percentage ' " 'Cos t• ' 'Grants Net Cost sic 2.5 27.78 1 ,453,590 1 ,009,136 444,454 DPSD 1.0 . 11 .11 581 ,330 4030582 . 177,748 MNWD 4.5 " 50.00. 2,616;25o 1,816,300 799,950 SM14D 1.0 11 .11 581 ,330 403,582 177,748 TOTALS" 9.0 100.W 5,232,500 3,632,600. : 1 ,599,900 Pacrc 4 , . s rC, A N1 ftAC9 First American Title Insurance Company 421 NORi'N MAIN STRE2T • SANTA ANA. CALIFORNIA • 547-6092 ' 550 ?:F!"I'O1:T Ct`.iT1iR )). TTE )%I]'.:I'ORT ))EAU', CALIFOM.", A ATTr: ALT}::c:i])?i; 1301:ID Your 1\10. PROJP.CT CO`"gTT1'.1 1M. 2 DAI;A POINT SANITARY DISTRICT Our Order No. OP-11].2641. Form of policy Corerogc Requested: CALTI'ORNIA L T.D TITLIi ASSOCIATION STANDARD COVERAGE POLICY In response to the el,ovc referenced al;plicotion for o policy of title insurance, this Company hereby reports that it Is ➢rents:! in issue r.r mate in l,a itv rrS rc of it,, dnir herrnf, n Pnii,v of 'i itln In<vrnnrr in thr- {..rm • rif7e�l GJa�'e, (cc 1:ku luno and ibe cstuta or interest d.c,ein kercincficr set forih, insuring against loss wliich may be sustained by rec.sonof any defect, lien or encumbrance not shown or referred to as on Exception below or not excluded from covcrc2,e pursuant to the printed Schedules, Conditions and Stipulations of said policy form. This report (and any supplements or amendments thcrcto)is issuedsolely for tbepurpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be, assun,eJ prior to the issuance of a policy of title insurance, a Binder or Commitment sf;,'uf,;l be'iequested. Dated as of January 29, 1972 at 7:30 a.m. L• J. P.arms TITLE OFFICER Title to said estate or interest at the date hereof is vested in: IWIZA POINT ""'.'IT!':RY DIM7,10ICT, a yubl is corporation of Ole Str.tc of Cr_1i;ornia. The estate or inierasi in the land be,cinafter 8esaibcd or refereed to covered by Ibis Report is: A Fee. A! th dole lu• c:of axcrptions to eucera,l:. in odditiol, to the printed exceptions and exclusions contained in said policy form mould Lr a:. folloics: 1 . 'rho ^i;.'.:, of O:Iv 1701' l,in, li .r }+url+a^.r•:, nnc! r'il•ht;: n;+inn'Ccnnttt iLctoto, n.^. ('01OV!,.1 f o D.111a ),oL1tt 'Srt'anl. Cntr= Conn;uty by dccu rc•con:,•d .1u7.y 29 , 1524 in (couf i r.ut ,1) 1.,"'+I A' M Y 'i I' �! •`; o:l-zzx2641 tool_ 531, page 393 of Dcedr,. (This lf.fects said Parcel 1.) 2. The Itirht to cnt:er upon, T,lace.. rid raintaiu anchorage over a portion of said Parcel 1 .ns conveyr,d to the San Diego Cnr.roli.deted Gas and lilectr4ic Corlpsny by deed re_corcleeli Au ust 12, 1926 In Book 666, nage 313 of Dc-cls. 3, The Ri;;hts of Way :and casements for undcrFround water and Fae conduits and/or Pine li'nr_s amid fuicidcnral purposes upon, alor,s, under, across and throu-b s..^_id Parcel 1, as convo ed by the Firnt 1:31:ional Lc::1k of Santa Ana to San .Irian water Cor:pany, by deed recorded Atwust 30, 3.92; in L'oo; 197, pa c 20 of Offici,^_I T:ccor(ls. Said ri;,hi(; t*e.re daly conveyed to Capistrano IzLacll County V ter. District, a bo(ly p(Aftic, hr i.natrla,-ic:2t recorded April 1, 19CO in Bcoh 5174 , pap•e 77 of 0fficia"t 4. il:e Reversion of the title to Fill. of the ]--ml Ilerei.nri'ter dcscrib.xd in Parcel. 'I_ if .... d 1z.,:(1if3tc;crl fo: pc..l;e:: ._ oth,,r tl.'rn providcrd in ti:c (iced f1-on 'i11c First 1lNV,10D211 611';11. U) u.11LU lath LO oF.iS ..U—ll .2' Pool: 197, prtf:c 20, of Of-Li-r.inl Recordr., refecrrcc hercl:y hai.rlg r'laule to t:he rCCOrd thereof for the particulors of Otte covditicas 01c,r(lin coutninel. The 1'evcrsionar}' righu.'., if an,', are presently vested in rii•st western rank and 'Drust Co^pa 5. An Agrecrlc.nt dated Atioust 10, 1933, Vilerehv PetY0ICn41 SCCUritiCS Cor:pany Ftat'C 1:0 Snkltll-rn Count;.C:> 6:13 colnt. ally ti1C pri.Vi.1cF;C to raiatain at-, ul.ectric ground and ccrt:ain cl_ectric mire. in the San Juan C:eck at a location therein described, sr, recited in t:hc D:?crce of Distribution in the natter of t110 Potato of E. L. Doheny, deceane(l , a ccr.tifie%i copy of which decree sari recorded April 2", 1939 in tcok 996, pane I of Official nccor(ls. (";) is affects: said Parcel 1.) 6. A Pr•rpett:nl K;,rorcrt and right of way for street, 10^1 :7nv and incicontal purpoFr,r, ovr'r thc- toot 10 feet of said l';1rcc1 1 ar. cosivcycd to tl:c County of Orrn1^.,e iry tic d rccorer:d July 25, 1953 in I:oo1. 43612, pege 438, of Offfic:ial Records. 7. All I'ar.r; cnC ever s::,id Parcel 1 for pole 1111-8 a11(1 1`inci('Cntal f•LlrjmpgC-s ac convovc•d to S,rm 1>10C,o G a: : lacctric ce,q,anv by decd recorded January 15 , 1959. in l:o0i' 4550, pac(> :192 of O%i-ici(,1 Rc!cordn. Said (?ec:l provi('.c, that 1:11v 1311c of poles nnrl cures across nnid lz,ud shsll lie taitl!.in t:h(• Scat'a'.arstcrJv 1:).O') feet of ;:,Ad lend. E. A Slo,,c La;;cr.ent. alrl r:f ;llt of va;: for rlcod ccnitrol and !ncidcnt'I I`urpo.^•::r: nn to tl.... 0;tjl;:, Cou(:ty Ylc,.:.l Co:,t.ro , PI[ '' /� .y i( , ,ril 1'. °a:7 er l ,. at reC( C'r. '1rCi! 26, V'W' in l:ool; 1,:149, pr!1',c '/l:1 o: 0i41ci(:l l:rcord(:. ('1'h':: uf;cci: : t:aid Parcel 1.) for C10h('v ov 111:11 T,i!Ic Linc 't, C(`ai i!f.tS .:1111 :Inciocilu 1. tin r.rt i.•;fl: i;'. cu l• .rro., r-1a r(•.:'rr('r.i in . . �!: 7:;';tt p:--o C. 114 oSi1; ;fci:�l 1:, cnr,Si: , ovrr n s:tril, of lrnu! 1:1.00 fent ill t i, tl:, b(•;•, 6XO f( vt , 1:oasurc•d at s-fteht: nrrt/ ( " on (•nch ..iJr of 1''.1r lol'frn:lur, d(n,crilnl rrut('� )mitt : foi :icur,.ilt^ ,(t t.li/ Fne.t;:,.::�,1 col lif l' of I.nt: 61. :111 TI ., .t ^o. (,';:`, on r.l(ovn ou 11 11op " or(-11126/il recorded it) Poole 29, pages 19 nntl 20 of `ti.scellaneous Man>, recordo of staid �rnnse cotlnir; thence Srluth 17` 56' 00" Vest, aloe— the. 5nutlierly prol.ongition Of ti:'! Line Of -:Ad Lot 61, a diofance of 40.00 iS>et to a point on the center line Of const 11ig1way {l).S. 107. a7-ternat'e) , 80.00 feet- in width .ntd slimna on i_l:r. Tnap o acid Tr;-:ct a. 932 nn "Call for<tis: Sante lliflr<;ay"; thence South 72° 04 ' 00' Bast alor.- the center line of said iii;.'.;: .5 , 1303.^_3 feet; thence 1caving said centor l.i_ttc, l;ortl: 7`• 5 ' 00" l<, , co ll G •>L- �10.h0 feat; tl:"tcc SOuth 72" 04 ` 0 " 13sst' 18.011 feet; thence '.'forth 17° 56' 00" 1'<st", 274.92 fec`t1 thence l:orth 68' 59' 30'• S!rat, 274.18 .c•zt thence : (w,:th 25` 30' 30" I.cst, 231.49 feet to the T;IIi? P07':5' OF h'i:GT!:;ililG o sa_ci ceaa r like of ri'ltt of T7rv: tllcrce ftr0sl id TRi;E 1'i11.PPT 07r ;lTCT i;Z r", Small 25` 30, 30" Vc.str, to the Scr.Cl;.aestcrly line of tl:e r: -mvc. dcscw11:2d property, tcin„ 260 feet: sore or less. (';:his affects .said Parcel 1.) 10. A. non-exclimive EnscTwmi : for pipe I l..ncr ,{;td inc-ItIontal, purposes ars set forth, in ::n r-ecrrded in L'oa?;. 8729, paq,.e. 456 of Offi.ci.al Records, over tha followin.n cee:cribcd portions of . aid 1 rd : nFnr,T r. A casetacnt' fifteen F;ect: to cridth, for pipeline. rurpofi.is , cieperihecl rs follows: Yo "inning nt a poil;t in 010 Northcal ,terly line of that ce:r.trtin parcel of lend granted to lir,.nr: roma fcr.iY.s;;y District by l'nicn Oil Coml-.%ny of California by deed record?. d snnc 16, 195`; in Roel: 4317, pastes IA r.:rl 145 , official ltecords Of Or:;Ttae County, California, distant thereon ??ol:th 68° 54 ' 35" Vent 354.00 feet from t'.te: `.briltea:;t:er • corner of said land; thence South 21" (15' 25" Ve.st :i0'7.00 feet; tlionce I1rlirLh J8' 54 ' 35" he:;t, 15.00 feet; 11w..nce No;r0i 21° 05' 25" ]::.:8t, 347.00 foci: to a noir.t in s,mN Horth:+nsterly lite of tite 1ancl conveyed to DzIna 1'oirit F(lni.".ar n].:;tLlf7t', tllet5ce Snnttli 6��' 54' J5" rsst 1.5 fc-.ct. aloil- said V"ortheae•tcrly Jill-, to tile: point of PAITM, 13 A Holt-c::c7u iye. casae:('nt twenty feet in 1:ldth, for plpelitic purposes , described as f`vllo'.a: 1'c^i,•r.{a: ,,^.c r. ?roint it the Novthca tnrly lire of thr.t certr::?n parcel Of land fr,:nic:i to .,,n'_ 'i'oi:a S::ratrn:y D:1r.trict by 1:I1i011 011 Cor.+a:tri Of C:lli.`'ortli;t by (SD.`:i rr CO?rd!'a .l i::?i. 1C+, L�.<,it 111 il.^•^ic 41 � , p::�(,II 1vt: falai ib�� , (lifl.0:l:f 1. 1'.i'CO?rd:; ? of. Cr.^nc;e Chu,:n("?, C 7J.torr:i::, dit:i::q`.0 t:11c.relrn ';Cwl:h GSo i." ' 3)" I:;:FC 2.09 foot from the ;;orCl:os tcri.y core;.:, t;lcreel , :id t,o:ira: beL::,a, nl::o in the 1'rr•icrJp li.tic of th;a rcrt :ilt } :.rcca. of I:.;1:1 corycv( d to tiro Or;:::c,;: Coanty i'lno Colit.rol lU::::tart b•, rrrrl rrcorc`rJ ..'::rel: >f • 1'?i•7 '.n 1'.:,01: 6049, 1••;:;tc.. 715 , 716 f+n•.l 717, Of'i ;ci^I llr, , ;,lx of .:a :d (lr+;u c' C'nulli;; Cl,f ,lc: citaitn:il:}; uloa;: .:crict 1:cn'l:hcr.t:- GO" 54 ' :35" ll..,t, _i51,0I f(•rt Yo Y? c .:orf.hc:."'t(:rly corr,or. of 1';a•c i•l, h lir':ril ;a ;,r:: tli^:c_1�i L.J ; tl•c-lace dot:l.h ;'1" OS ' 2'i" l'; :a 20.('0 fri:t: f,long li.a S,•Ui.11v'rctivll•i 3.'i.l:,` of 1,..1'CC "t rt, :: 1`.]ilt : (a.:'i!r;` :iGllt:�: •.,, ;i!: ' ;y:." 1'a.ct . 3Y).VO -i:ret to n 1'r-•tc•.rly lire (it: w; 1A to the �. o :. f .e ;: 4 . • n Lry OR-1112641 Orange cont:ty Flood ("nntrol District; thence 1?Orth 10° 04' 12" East, 20.33 feet, n1ong said F?estarly line. to the point o;: Lep,iuniog. 1t is ur.Lcrrtood and agreed 1.7 tilt, parties 1!ercto that the ripht of e:a7 herein collwyc:) si+sll be 15.00 feet: in 1'idth as to Parcel A, and 20,00 fact in width as to Parcc-1 P.•. 11. An l:a^ca!ent over Enid Parcel 1 for either. or both role lines, conduits ane) i.nc catol. purposes ns ret forth in an instru:=.ent recorded in, look 9827, page 292, of Official Records. Said Med provir.o.s tl;nt said easement in the aforesaid land shall he 12.00 feet in u1Jt1l, h:•!ng 6.0:1 fec-t. measured pt right: Lnol.ee on C'ecit side of the follow:wt c`cscribod center lines: Corinr-nc rlf; nt ta:e SUut't,cnst cower of l.ot 61 :(n Tr ct 1+U 932, as t317b.4n on a }Isp record n 5n Yon,; 2.0, pt;r,rr 19 and 20 of `:'iscollrnc;oun fi;'pn, zecorca of said 017nrlg;e CO:n;ty; t)'c.'ncC: Sotltit 17' 56' 00', 17Qat alonp, til, solltl;r_ir.,'.)' proi.Utl('IIt7iUa of Lite Iia='icrly Finn of a.`!Y hilt 61, a distance of �.�). O foot; thence Icevini; 6Rid .souill— r•r7r nrn',rr•^at-ion. scath 72° 0:: ' 00" i:r.st'.. 7 "i3.9'; four: trance North 17° 56' G',Y-: Hsi-, 310.50 recti thtlten South 72" 04' 00" wt, M %Cat tnr-,acu W^0th 17* --56' 00` Myt, =.84 fent; thence icor..., !0" pal res: Ue , 1 3 t to 1` ) .; st 2_.:1 fee t the 7. 1i,., 1" 'OF MJ.'.MB of tho contr_r line h£i•ein denc_ri ,Rd ; thruice froli oaicl TRUE POD' 0 Bi,^T:^1310, )forth 19" 05 ' 00" East, 109.72 feet to a point betel-urfter kroi.,n and derignnt-cd Voi_nt "A". RUM UeRinn'ing at said `1;UI: POINT OF BEGINNING; thence ;'orth 70© 38' 45" Vest , 205.33 feet. ALF.Ot Tho^a, ccrtai.n strips of lard 4.00 foot itt width, being 2.00 fact on each side ot t:., fol:iotzil,g clescri.bed center linen. 1. ii^ tinnlpg at: „id TMUE 1'0'1?;T OF ;;I:CF.[^l'I1:G: thence South 19` 05' 00" Vast, 1.0.0 feet. 2. 11c<:irain^ at Raid TRUE POIET OP ;>PC:T?;:2I1:G; thence South G4° 56' 07" falai, 10.09 Ret. 3. buyinning at nLid Point: "M thence: forth 1.9° 05' 00" 1,a,t , 25.00 feet . 12. An L'c!r.cu:ant for either or. Loth underground linen, conduits and incidental purposes LE sct i:ort.h :in wt Instvaent rocotrdal in tool, `:927, pal;c: 4:12, of Oft'ic:ial ltccordl-., over talc• folloving dcscrlbu+d portion of said larlet : Ca n'feveing at the Soatbc};;t corder of Lot fel. in Tract to. 932, as chnni an a M!, recol-01 in Sook 29, ipajxs 19 nui 20 of .l cc„lirneoun ?' n,, rccoru!: of` said 0... ^.c Comurv: t:1 onne south 11' 56' t}7" Vest +ng s , 1 ^ f l t 1 of the a1c tl�c cla,lezip n•olo:r„r.C.cr FamVerly line of said Lot 61, a di:Mnee of 40.00 Rot•e thence lc:cv:in, rr,:id cr? y Iwolar: nvion, So.cth i:” ('i ' 0`;" . , ;r , 1103.93 fart: t1icncc i..^.rti1 17' 'l„r ' ("�t• 1•nst, .',ill= Row t:) yre `ouch 72° Do ' no Mc, 12.03 (,pc=.t' , till;c:: 1°orth l%° 00" 1'11:: ,.sG. ' 4 frct.I ihaucc Norl.h 70' 33' 45" t' x , 21 .31 fact ; Mnce '.:ortll 19' 05' rnnt , W.72 fact to rhe iTu '.'C'1?;5' OF F?''.'. . ,'I1:C of tl,c. co tc r .11,'r. hc•rrin 11< .:,"llr•ci ; Wave Cron ..old TAP . MINT 1 Oi' iFG7';;,1?il, North 1,::° 0;' 30" lb 1.10111 i'. rc• it r.1 .... ro ,:;'id r:c..•r'ent: Ill r :ild Inn rlur ^uI:. (Thi(; nffrct). r.rlld • . OR-117261,1 DIS MPTTON: Parcel. 1: 611 that cerKnIn land r.itaated in the State of California, County of Orange, R;u)cl�o lacca ue Ia Piny_, City of " ii Su:n Capis.trttno, described ns follows: Vegfnniier at: the intersection of Clic. Southeasterly line of Dol ohi;po Street, SO, 00 fMet 060, fon:lor)y *'ci:inlry tw.'rule, as described In n aced to the County of Ortrign. meow .ed on April 14, 1026 in tool: 63u, page 363 of Decd^, with a parallel 1th and distant n+Rnti)\7"`a:erly 500.00 feet:, 11'aasinced at rj,ht• - an,rl.C:a, Non the center line of Vic%OrQ Heave, as descriil(Q in the dci cd to the Cour.ty c.'.' crci.)ge. rezorded on ,. ;y 15, 1912 _.n fool: 324 pncu 14 s nicl center line being the Southerly Line of Go Pryor i oneIitead as Ococribcd in tl:e peered recorded in rook 7, pare 31. of i+;:r_ :a:c:a•?s in the office, of the Col::;iy i'.eccr(lxr of Los :,1)r•,: J.C. C:oLRtwY thaT)ce Ota(:h 6i' 5V 35" East 762.05 feet .:'!ont; ...'d rara3lcl IN== tKen cQ South 10" 43' 50" vest 1-57.1.0 f_ect- to a line p arsllc7 with and ("in ant 'South% st:erly 9:0.01 feet, r,:,....,areri at right ar 3es from the center i. ne of ^air, Victoria t'i'me; the"Oc'c` i(orth 63' S4' 35' vent 93706 feet , <'t.nng said ra:..ilel line to the oiiC):':n.^.t:Cx1v HTi-a of snix' Pryl- fibi:: o Wrvoti tI:E:tie }lout 350 52' 01" Nct 261 .82 fCCt --long said i Sontheanterly Wn to an app3-cpoint therein; t`)c:rce i?orL'e 39, _r . - P:ar;t: r7 r t.har vIron that ecrtcin yell and pumping plant cite descri.to(I in parccl .D of n dred to San 3aa.n Voter Co;,n ny. recorded on August 30, 1920 in hook 197, Parc 20 of Offi.ciol. Records of Oron.^c County, Col _forn5a. AM excepting therefrom the parcel of land conveed to the Oransr,c Count.* Flood Control by deed recorded larch 26, 1962 in. took 6049, pyre 715 of Official Records. -Also excepting therefrom the foll.o(/3-era Ail va:tor oil thr: cu'i::aco of and/or (Enderlyinn tt" above dos.cr.i.Ued land and subject to the perpr.ival right rul privilege to extract , rumove and/'or viti1(lin: the sa17z from the .�nnos, „_.A:'.1s ...('C` Ch:_i...,!I T. thereof, 1)y vioanG " of 6"a11:; and h:' 1 ......iln4 plcr.itur:ted upon those evrtain 1ee31 sites, Which water l endthe riga:_ and priviNzc nre described in the durdfrn : Cc First `:nficnl Bank Of Santa Ana to San Juno linter MUM, recordW August 30, 1925 in took 197, ge 20 of Official hecords. 197, p age excepting from tkat portion thcroof KIM undnijilec a p3 ne PnraYi.ca. to nild M fcot .'EJi:>7 th. nurface Uborcot , Mich portion is bevoiaalter 'iQf:'1"!'Cd to vs .soil land"; all oil , gns, l:etr'olcuri and other hydrocartna :wbstnv.cc:: , ninrrnlr: i:n'1 i:aLcr :in, .,."(der or r: cr,v:rai']c from . nig! 40; the ri;1s. to ir: joct or it.)tr(,Ow l f:roct Linn to t1w, r,tore tilt•rein arl s E:bt:egnc^.( iv removx_• f)'ola said 7nnd any o13 , y=. l,r(:rr,lcu;t i:a:i ether hyd ocarLon ::u'. .;, r..uorn3c . tl a'i u:E';., L(l i'.,'.('Cr, te�,'< :C;. :.'].th all: of toy. vnntwors rn: svivillNes i.l) Und Shroud, . ..id Its fc,r the t:urp:':c of e�:ei•- cir;in; the ril 'an hare!" )'gamed , iliri.Y•:jop con not l' ..; r'1 to ( nC ii )t from 15- 1- to ' roto f.01 to itr%l t, "011 � i121C: to cr n" thee !Mill- Whorvin to co:: p/tall' '.1'Kl ll;`.t_1,'".1t 111 i—lls into and throoph a^idInn! i'ro:e ;:urfsco �ioemiv"s (vtoidn the Way horoin Cn;�\'c)•r`a� w—'vit!ok4 , lout'. J'-r, WL th- 1"/. i'1. .. in. . .• ln )1 • nl:v, 0 ur) 1, )2 v.'. �'.I tool(.' (lr. rj' ` t: to r :..•'r upon i l n .'nr; vier vv.v1j tu,' . .,d 'i,iQ , as r' ^(•r'vo') Ali GO Arad frup �; t;;e yG.I .. i .r � •'r• OR-1112641 VIAOn Oil conpan— of Ul.iforri.a, a corporation, recorded Sone 16, 1.955 in book 4317, 1-, ;;o. 1!:4 of Official 11ccords. P.nrcel 2: fiitc "P"! Ce,:, a::ci.ns at the point. of 1r,tersect:inn of Ll:e r<o:aarly ling of the 300 foot rif }a of hry of fhe f.tchi r;on, Tepel:n _nd Santa ie Railroad [ri.th tha i?OrtL[:r1.i' 117ne of \'i(.t( riCl 1SOl11eVI7Td as shown on the '''rnp of 5n-n .Tuan Py— The" --Ba )"CCC:i :iCC1 in P.00k 1.9, 17., ;C$ 27 end 2S of '.'iocr-11 nneouc'. }:ecordo. of 1.0:: All"-;e3co fount}, Calirornir., and rennin; thcnce i':orth 6(;° 55 ' 00" rc!!,t a1e::i; tha Pe.^,ter1.} prolers:at:ion of thrn >;orthcrly l.i.ne of ai-d Victoria rL d:i(at:ar,cc' of .1Ci.40 feat to the intersection telt1l the kostisly rij-,ht oi' :ar fine of tile / CMF,ou, To.pfl,", and Srtr.ta Pe. MA.lroc,d ; and running f�,Cnth 17° j8' 30" 1 cst along said Westerly Tight. of VRj line n &i.s— tanc_e of 502.25 Mt to the northeasterly corner of the 111A 01070 by the Cap0trano Roach Company no per dCd'K recorded in Wok, 661., page 148 of Deeds, rcc(TdS of (11'::5`;;<; County, CrOAtionnin; rennin; thonec woth 600 54 ' 00" i:'C6t Worn An No 'ilyar y bo.tnj,Ary of the And onned [-' said CnpiSLr, ,no he ch ce:+;;, ';+ V. ci ;:a:s:e^ of 99-5.22 feat to t.1ir: true, po ;.nt: of hr_fci.t;,i.nr of the l::nd hcrc:i.n dencr:ibud; thence continuing Moth 61' .54 ' 00" vest a;.r:nc, said 1;orth— arlv l,,c:n;:d^'.": n di r•.f:,ne" of in fear r., .. .. ;.,c {-},., c ..r,}7 1' nr_. ' nn„ 1'}eW ars nt. Lu a pcilnL; Lhu7nce South 63° 54 ' tib:' j,p7„,t: 3l% fl:^t tb a point:; tlicncC forth 21` 06' 00" AM 50 feet to the true point of L•et:iu.nint. L.T1ica ed Plata enWosed. . FOR. :iEC 22 a 23, T.8 S, R.8 Y/. [Erna ilcro.,fa §cac% ;? i 25 s LIN - - zz i_;O rs ,. �cr...•>,d 30 � 1 �{ • • •\��`'`��` "i /�<ar�� t2J ,,� ss_..LC .'i{ ,�c: l�� _iI �l � , � i 32 �� U/ !33 /� 12.:. e wrz • cv 5;t�1 122-15Lor I •� '.�`.- 3/6:C IGJ ' '�.��°V R:. Bs JJ6i d: ��.. � s�aRcxlssf .�L_ : . 137f 7,.. NO. 9•;2 a /d 29•/:3./9 r,OU nsSF<soxs ecou a ,z:c;:c%s •.•.v _ First An, 1pib N%,P In For lnlormction Or.I .:iJ ;s t..,.., EXHIBIT "C" January 12, 1972 CITY OF SAN JUAN CAPISTRANO Treatment Plant Inventory 1 Double Balance Scale (Voland) $ 375.00 1 Drying Oven (Thelco) 350 . 00 1 Metal Desi: (McDowall & Craig) 135. 00 I I'ood Desk, ketal top 100 . 00 1 Swivel Arm Chair (McDowell & Craig) 50 .00 2 Straight Arm Chairs (McDowell & Cram) 70 .00 1 Swivel. Arm Chair 35.00 1 4-Drawer File Cabinet (McDowell & Craig) 135. 00 3 Metal Plall Lockers 100 .00 1 Posture Chair 50 .00 1 Diaphram Pump (Homelite) 450 ,00 1 C01110-Al Ong 150 , 09 1 ; -ton Pickup Truck/dump bed (1970 Ford) 3 ,600 .00 . 1 Gas Mask 35. 00 2 Fire Extinguishers 40 ,00 1 Refrigerator 150 .00 3 Pair Boots & Rain Suits 85.00 1 Power Mixer 25. 00 Miscellaneous IIand Tools 250 .00 Miscellaneous Lab Equipment 200 .00 1 Triple Beam Balance Scale 75 ,00 1 Hudson Spray Gun 20. 00 1 Wheel Barrow 35 .00 6 , 515 . 00 S/A $ 6 , 000 . 00 � 1 915/2006 AGENDA REPORT D 18 TO: Dave Adams, City Manager FROM: John W. Elwell, Interim Public Works Director SUBJECT: Consideration of Addendum No. 1 to Amendment No. 2 of the Project Committee No. 2 Agreement (South Orange County Wastewater Authority, formerly the South East Regional Reclamation Authority) (CIP No. 787) RECOMMENDATION: By motion, 1. Authorize the Mayor to execute Addendum No. 1 to Amendment No. 2 of the Project Committee No. 2 Agreement, to Authorize South Orange County Wastewater Authority (SOCWA) to proceed with the Environmental Review and Complete of the Preliminary Design Report; 2. Authorize the transfer of $200,000 from CIP No. 788 (The Recycled Water Reservoirs) to CIP No. 787 (The Recycled Water Advanced Water Treatment Plant); and, 3. Authorize the deposit of$120,000 with SOCWA for the work. SITUATION: On June 29, 2000, the City entered into Amendment No. 2 to the PC 2 agreement forming the PC2-AWT. The purpose of which is to design, construct, operate, and fund the J. B. Latham advanced water treatment plant (AWT) to produce recycled water (RW). The South Orange County Wastewater Authority (SOCWA), the Moulton Niguel Water District (MNWD), the South Coast Water District (SCWD), and the City of San Juan Capistrano have been working on funding a large portion of the cost of the AWT by making an application for a Proposition 50 grant in the amount of $5,000,000 for the AWT. In order to be eligible for the proposition 50 grant two items need to be completed by May 2007. The first is completion of the CEQA documentation; the second is the completion of an agreement to design, build, construct, and operate the AWT. Addendum 1 to Amendment 2 will provide for MNWD's and SCWD's consent to use the available secondary treated effluent not otherwise needed by MNWD and SCWD to fully utilize their own respective capacities in the AWT Project. In addition, it will provide for SMWD's consent, to allow use of the available effluent by the City in conjunction with its Agenda Report September 5, 2006 Page 2 capacity in the AWT Project. The Addendum will also authorize the preliminary design and environmental review of the AWT Project in a timely manner so as to qualify for potential Proposition 50 grant funds, if and when such funds are available, and to otherwise authorize the funding of such design and environmental services. This Addendum will allow completion of development work needed to maintain eligibility for the proposition 50 grant, and it will provide a refinement of the knowledge about the cost, and operational characteristics of the planned AWT to allow for completion of the DBOF Agreement. It also makes a tangible first step in allowing the City to secure the use of up to 3.0 mgd of excess effluent from MNWD and SCWD for use in meeting the City's projected recycled water needs of up to 7.0 mgd, which is higher than the City's current supply of 4.0 mgd. MNWD will take this agreement to its Board in late August 2006, SCWD in early September 2006. FINANCIAL CONSIDERATIONS: The Recycled Water Master Plan includes funding of $1,200,000 in CIP No. 787 in FY 2008/09 for design and development work. To pay for this work at this time, staff proposes to take $200,000 from CIP No. 788, which has $600,000 budgeted for reservoir development work. Staff feels that it can complete its planned reservoir development work with the remaining funds in CIP No. 788. The projected amount to be spent by SOCWA for the CEQA and PDR work is $150,000; the City's share of that is $120,000. The additional funds are needed for, staff time, contingencies, and legal fees related to this Amendment and the DBOF agreement. The opportunity for Proposition 50 funding moves the time table for design and construction forward by about one year. The City's portion of the Proposition 50 grant will be about 7/9ths of $5,000,000 or about $3,900,000. This will be a significant fraction, 23%, of the $16,700,000 budgeted for the AWT. NOTIFICATION: SOCWA MNWD SCWD Agenda Report September 5, 2006 Page 3 RECOMMENDATION: By motion, 1. Authorize the Mayor to execute Addendum No. 1 to Amendment No. 2 of the Project Committee No. 2 Agreement, to Authorize South Orange County Wastewater Authority (SOCWA) to proceed with the Environmental Review and Complete of the Preliminary Design Report; 2. Authorize the transfer of $200,000 from CIP No. 788 (The Recycled Water Reservoirs) to CIP No. 787 (The Recycled Water Advanced Water Treatment Plant); and, 3. Authorize the deposit of$120,000 with SOCWA for the work. Respe ully submitted, Premed by JInwell, Eric P. Bauman, Public Works Director Water Engineering Manager Attachments: 1. Addendum 1 to Amendment 2 to the PC 2 Agreement ADDENDUM 1 TO AMENDMENT NO. 2 AGREEMENT FOR ACQUISITION, USE, OPERATION, MAINTENANCE AND EXPANSION OF SEWAGE TREATMENT PLANT OF CITY OF SAN JUAN CAPISTRANO BY SOUTH EAST REGIONAL RECLAMATION AUTHORITY FOR AND ON BEHALF OF PROJECT COMMITTEE NO. 2 (THE "PC 2 AGREEMENT") (Advanced Wastewater Treatment Project: Project Committee No. 2/AWT) This ADDENDUM 1 to Amendment No. 2 to the PC 2 Agreement (hereinafter the "PC 2/AWT Agreement") is made effective this_ day of August, 2006 (the "Effective Date"), by and among South Orange County Wastewater Authority ("SOCWA") (the successor in-interest to South East Regional Reclamation Authority (SERRA)), a joint power agency created by that certain joint powers agreement entitled "Joint Exercise of Powers Agreement Creating South Orange County Wastewater Authority, Orange County, California (SOCWA)" dated July 1, 2001 (the "Joint Powers Agreement"), and pursuant to Section 6500 and following of the Government Code of the State of California, for and on behalf of its Project Committee No. 2 ("PC 2"), and the following member agencies of SOCWA and members of PC 2: (a) City of San Juan Capistrano ("SJC"); (b) South Coast Water District ("SCWD"); (c) Moulton Niguel Water District ("MNWD"); and (d) Santa Margarita Water District ("SMWD"). RECITALS A. The PC 2 members entered into the PC2/AWT Agreement to provide for the design, construction and operation of advanced wastewater (tertiary) treatment facilities (the "AWT Project") at the Jay B. Latham Plant (formerly referred to as the "SERRA Plant", to be referred to as the "Plant" herein) site for the diversion of up to 11.0 mgd of secondary effluent produced at the Plant from discharge to the Pacific Ocean and treatment of such effluent for beneficial reuse as recycled water. The PC 2 Members ATTACHMENT 1 who will fund, and thereafter have capacity interests in, the AWT Project are SJC, SCWD and MNWD (the "PC 2/AWT Members"). The PC 2/AWT Members desire to have SOCWA resume completion of the preliminary design and environmental review of the AWT Project, to be based upon the revised project phasing and participation as set forth in this Addendum 1. B. The AWT Project will be designed and constructed in one phase with a design capacity of 9.0 mgd, in lieu of the three phases and a design capacity of 11.0 mgd originally contemplated in the PC2/AWT Agreement. SCWD and MNWD plan to own and use less capacity in the AWT Project then originally set forth in the PC2/AWT Agreement, and SJC plans to own and use more capacity in the AWT Project then originally set forth in the PC 2/AWT Agreement. PC 2/AWT Member's currently contemplated capacities in the AWT Project are as follows: SCWD- 0.5 mgd; MNWD- 1.5 mgd; and, SJC- 7.0 mgd, for a total of 9.0 mgd in the AWT Project, C. Based on the `[SERRA]Jay B. Latham Plant Wastewater Capacity Allocations' set forth in the PC 2 Agreement, SCWD and MNWD will have excess secondary treated effluent available even after their participation in the AWT Project at the revised AWT capacity interests set forth in this Addendum 1, which otherwise will be discharged to the Pacific Ocean. SMWD will not participate in the AWT Project and the secondary treated effluent related to SMWD's wastewater capacity allocation and wastewater flows actually sent to the Plant by SMWD are discharged to the Pacific Ocean. Pursuant to this Addendum 1, SJC desires to secure assurances from MNWD,SCWD and SMWD that SJC may use as long as it is available a quantity of secondary treated effluent generated at the Plant sufficient to support the projected recycled water production resulting from SJC's capacity interest(s) in the AWT Project, subject to the forty year term on such assurances provided for hereafter. Page -2- BAW&G/PG/kp/78800 17005 N 2.22-6-11-06 Draft 1 D. The PC 2/AWT Members ( SJC, SCWD and MNWD) have reviewed alternative treatment processes for the AWT Project. In order to complete the environmental review and the preliminary design for the AWT Project in a timely fashion so as to qualify for potential California State Proposition 50 grant funding in the magnitude of$5,000,000, the PC 2 Members desire to execute this Addendum 1 for the following purposes: (1) revise the project phasing and projected capacities of the PC 2/AWT Members previously set forth in PC 2/AWT Agreement; (2) provide for MNWD's ,and SCWD's consent to use of the available secondary treated effluent not otherwise needed by MNWD and SCWD to fully utilize their own respective capacities in the AWT Project, as well as SMWD's consent, to allow use of the available effluent by SJC in conjunction with its capacity in the AWT Project; and, (3) authorize the preliminary design and environmental review of the AWT Project in a timely manner so as to qualify for potential Proposition 50 grant funds, if and when such funds are available, and to otherwise authorize the funding of such design and environmental services. AGREEMENT The parties agree to revise the PC 2/AWT Agreement, including those certain sections of thereof as noted, as follows: 1. Revised Section 1 B "Project Phases". Section 1 B, Table 2, which sets forth the proposed capacities of each PC 2/AWT Member in the project facilities, is amended to be as follows: AWT PROJECT CAPACITIES (PROJECTED) Page-3- BAW&G/PG/kW78800 17005 N 2.22-6-11-06 ]haft 1 Table 2 PC 2/AWT AWT Project Capacity Share Member Capacity m d sic 7 77.78% MNWD 1.5 16.67% 0 Total 9.0 100.0% 2. Environmental Review: Preliminary Design. The PC 2/AWT Members agree SOCWA may proceed with the environmental review and the preliminary design of the AWT Project as revised by the terms of this Addendum 1, subject to the members' approval of the environmental services and design services contract(s) for such work. The PC 2/AWT Members agree to deposit with SOCWA the budgeted amounts specified in Exhibit D (which Exhibit D will supercede the costs previously allocated to the members for preliminary design in Exhibit C to the PC 2/AWT Agreement) for the preliminary design and environmental review services, and to further deposit all other associated costs for SOCWA's legal review of such matters, including preparation of this Addendum 1, within sixty (60) calendar days after the Effective Date of this Addendum 1. 3. Revised Section 2B. Section 2B, "Funding Opportunities: Withdrawal", is amended as follows: "Section 2B. Funding Opportunities: Withdrawal. Upon request by any PC 2/AWT Member, and at any such member's individual expense, SOCWA will pursue funding opportunities from available state or federal sources/programs for the AWT Project at the earliest possible date. It is agreed by the parties to this Amendment No. 2 that, subsequent to the completion of the preliminary design and environmental review, but prior to the award Page -4- BAW&G/PG/kP/78800 17005 N 2.22-6-11-06 Draft 1 of the final design contract for the AWT Project, any PC 2/AWT Member may withdraw from participation in the AWT Project. In the case of a withdrawal, all further obligations of the withdrawing member shall cease as of the date of such withdrawal, except obligations of that member for expenses already incurred pursuant to this Amendment No. 2. Subject to the further approvals by the PC 2/AWT Members prior to Final Design and construction, the AWT Project shall be constructed and thereafter owned, operated, and maintained by SOCWA, through, on behalf of, and for the use and benefit of, the remaining PC 2/AWT Members." 5. Effluent Surplus. SMWD, MNWD and SCWD each agree that SJC may use effluent that is a byproduct of wastewater flows from, respectively, SMWD, MNWD and SCWD to the Plant, but, in the case of MNWD and SCWD, only to the extent that such effluent exceeds the levels required for, respectively, MNWD's and SCWD's AWT Project capacities (collectively hereinafter," Surplus Effluent"). SMWD, MNWD, SCWD each will allow the use of its Surplus Effluent (hereinafter the "SMWD Effluent", the "MNWD Surplus Effluent' and the "SCWD Surplus Effluent by SJC for such specific purpose, subject to the following conditions: (a) SJC's use of the Surplus Effluent will be deemed used on a proportionate basis as to the SMWD Surplus Effluent, the MNWD Surplus Effluent and the SCWD Surplus Effluent. Notwithstanding any other term set forth herein, SJC agrees that SMWD, MNWD and SCWD make no promises, assurances or guarantees that they will individually or collectively send sufficient wastewater flows to the Plant so that the Surplus Effluent will continue to be available, or available in any specific quantity, for SJC's use in connection with the AWT Project as provided in Amendment No. 2, as supplemented by this Addendum 1. (b) SJC's use of the Surplus Effluent is restricted for use by SJC in connection Page-5- BAW&G/PG/kp/78800 17005 N 2.22-6-11-06 Draft I 0 with SJC's 7.0 mgd capacity in the AWT Project, and for no other purpose unless otherwise agreed to in writing by SMWD,MNWD, SCWD and SJC, and approved by Project Committee No. 2, if required. (c) In recognition of SJC's necessity for the Surplus Effluent to fully utilize its AWT Project capacity and therefore benefit from investment in its recycled water program, SMWD, MNWD and SCWD each agree to enter into timely discussions with SJC on a means of avoiding any permanent reduction in the available Surplus Effluent should SMWD, MNWD or SCWD decide in the future to develop any facilities which will reduce the amount of wastewater conveyed to the Plant and therefore impact the available Surplus Effluent necessary for SJC to utilize its capacity in the AWT Project. (d) Notwithstanding any other term set forth in this Addendum 1, the consent given by SMWD, SCWD and MNWD to SJC's use of the Surplus Effluent, including the requirement set forth in subsection (d) of this Section 5, will terminate on a date forty (40) years from the Effective Date, unless otherwise agreed to in writing by the parties hereto. Upon expiration of such consent, SJC shall be limited to the quantity of effluent generated at the Plant resulting from wastewater flows conveyed to the Plant by SJC, unless or until otherwise agreed by the parties. 6. Substitution of SOCWA. All references to "SERRA" set forth in the PC 2/AWT Agreement are deemed to be references to SOCWA, as SERRA's successor-in- interest. 7. Delete CGvL Report The parties agree that the CGvL Report will not be incorporated as Attachment 1 in the PC 2/AWT Agreement. S. Recitals/Exhibits. The parties each represent and agree the Recitals are Page -6- BAW&G/PG/kp/78800 17005 N 2.22-6-11-06 Draft 1 true and correct. The Recitals are incorporated into this Addendum 1. Exhibit D is attached and incorporated into this Addendum 1. 9. Effect of Addendum 1. Except as modified herein, all other terms and conditions of the PC 2 Agreement, including the PC 2/AWT Agreement, shall remain in full force and effect. In the event of any conflict or inconsistency between Amendment No.2 , the terms of this Addendum 1 shall control. The terms "PC 2 Agreement" and "PC 2/AWT Agreement" as used in such documents shall include this Addendum 1. 10. Counterparts. This Addendum 1 may be executed in counterparts, each of which shall constitute an original and which collectively shall constitute one instrument. THIS ADDENDUM 1 is entered into by each of the parties as of the Effective Date above. SOUTH ORANGE COUNTY WASTEWATER AUTHORITY ON BEHALF OF PROJECT COMMITTEE NO. 2 By Chairman By Secretary APPROVED AS TO FORM: BOWIE, ARNESON, WILES & GIANNONE Legal Counsel - SOCWA By Patricia B. Giannone Page -7- BAW&G/PG/kp/78800 17005 N 2.22-6-11-06 Drall 1 PC2/AWT MEMBERS: CITY OF SAN JUAN CAPISTRANO By: David M. Swerdlin, Mayor ATTEST: Margaret R. Monahan, City Clerk APPROVED AS TO FORM: John R. Shaw, City Attorney MOULTON NIGUEL WATER DISTRICT By President By Secretary SOUTH COAST WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary PC 2 MEMBER: SANTA MARGARITA WATER DISTRICT By President/Vice-President By Secretary/Assistant Secretary Page -8- BAW&G/PG/kP/78800 17005 N 2.22-6-11-06 Draft 1 EXHIBIT D PC 2/AWT Members Environmental and Preliminary Desion Services Budget Allocations 7PC2/A7WTCapacity Capacity Share of Share of (mgd) Share PDR Costs CEQA Costs Total Costs SCWD 0.5 5.56% $4,722 $3,611 $8,333.00 MNWD 1 1.5 1 16.67% $14,167 $10,833 $25,000.00 SJC 7.0 77.780% $66,111 $50,556 $116,667.00 Total 9.0 100.00°0 $85,000 $65,000 $150,000.00 Page -9- SAW&G/PG/kp/78800 17005 N 2.22-6-11-06 (hail 1 32400 PASEO ADELANTO � � MEMBERS OF THE CITY COUNCIL SAN JUAN CAPISTRANO,CA 92675 SAM ALLEVATO (949)493-1171 (949)493-1053 FAX • m[OAIURARO DIANE BATHGATE [SIAIUSXEu 1961 WYATT HART www.sanjuancapistrano.org 1776 JOESOTO • • DAVID M.SWERDLIN NOTIFICATION OF MEET POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of San Juan Capistrano will meet at 7:00 p.m. on September 5, 2006 in the City Council Chamber in City Hall, to consider: "Consideration of Addendum No. 1 to Amendment No. 2 of the Project Committee No. 2 Agreement (South Orange County Wastewater Authority, formerly the South East Regional Reclamation Authority (CIP No. 787)" — Item No. D18. If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at the City Clerk's office by 12:00 p.m. on Tuesday, September 5, 2006 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a yellow "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Eric P. Bauman, Water Engineering Manager. You may contact that staff member at (949) 487-4312 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanouancai)istrano.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-agendas(cDsanivancaaistrano.org. Meg Monahan, CMC City Clerk cc: SOCWA; MNWD; SCWD; John Elwell, Interim Public Works Director; Eric P. Bauman, Water Engineering Manager * Received staff report San Juan Capistrano: Preserving the Past to Enhance the Future 4�./PII-Wd on 100%R.cYO.d Pap•, 32400 PASEO ADELANTO MEMBERS OF THE CITY COUNCIL SAN JUAN CAPISTRANO,CA 92675 % SAM ALLEVATO (949)493-1171 },/yam IA[cA1nAAIEB DIANE BATHGATE (949)493-1053 FAX fS1A1uSXFe I )A6) WYATT HART www.sanjuancapistrano.org 1776 JOE SOTO 0 DAVID M.SWERDLIN September 6, 2006 NOTIFICATION OF ACTION BY THE CITY COUNCIL OF SAN JUAN CAPISTRANO On September 5, 2006 the City Council of San Juan Capistrano met regarding: "Consideration of Addendum No. 1 to Amendment No. 2 of the Project Committee No. 2 Agreement (South Orange County Wastewater Authority, formerly the South East Regional Reclamation Authority (CIP No. 787)" Item No. D18. The following action was taken at the meeting: Mayor authorized to execute Addendum No. 1 to Amendment No. 2 of the Project Committee No. 2 Agreement, authorizing the South Orange County Wastewater Authority (SOCWA) to proceed with the Environmental Review and complete the Preliminary Design Report; transfer of $200,000 from CIP No. 788 (the Recycled Water Reservoirs) to CIP No. 787 (Recycled Water Advanced Water Treatment Plant) authorized; and deposit of $120,000 with SOCWA for the work, authorized. The following documents are in the process of being executed: n/a If you have any questions regarding this action, please contact Eric P. Bauman, Water Engineering Manager at 487-4312 for more detailed information. Thank you, Meg Monahan, CMC City Clerk Cc: SOCWA; MNWD; SCWD; John Elwell, Interim Public Works Director; Eric P. Bauman, Water Engineering Manager San Juan Capistrano: Preserving the Past to Enhance the Future 0 Printed on 100%Recycled Paver Jww, 32400 PASEO ADEI AN70 MEMBERS OF THE CITY COUNCIL SAN JUAN CAPISTRANO,CA 92675 /j (949)4931171 ('J� DIANE B THG (949)4931053 FAX • ✓✓j/ mfoV4111U DIANE BATHOATE ftlAluSMm 1 (96I WYATf HART www.sanjuancapistrano.org 1776 JOESOTO DAVID M.S WERDLIN TRANSMITTAL TO: Brien Peck SOCWA 34156 Del Obispo Street Dana Point, CA 92629 DATE: September 12, 2006 FROM: Maria Guevara, Deputy City Clerk (949) 443-6309 RE: Addendum No. 1 to Amendment No. 2 (Advanced Wastewater Treatment Project: Project Committee Mo. 2/AWT) Enclosed is an original Addendum No. 1 to Amendment No. 2 to the above referenced project. Please send our office a conformed set. If you have questions concerning the agreement, please contact Eric Bauman, Water Engineer Manager (949) 487-4312. Cc; Eric Bauman, Water Engineering Manager John Elwell, Interim Public Works Director sSan Juan Capistrano: Preserving the Past to Enhance the Future y j P,I.t.a--100%Recycled Fader • see • 32400 PASEO ADELANTO �,q� MEMBERS OF THE CITU COUNCIL SAN JUAN CAPISTRANO, CA 92675 jy iotMlnrtll DIANE L.BATHGATE IftlRtlXfl 1961 COUENE CAMPBELL (949)493-1 171 JOHN GREINER 1776 (949)493-1053 (FAX) WVATT HART DAVID M.SWERDLIN CIN MANAGER GEORGE SCARBOROUGH September 6, 2000 Thomas R. Rosales Assistant to the General Manager/ Director of Environmental & Technical Services SERRA 30290 Rancho Viejo Road San Juan Capistrano, California 92675 Re: Amendment No. 2 Dear Mr. Rosales: At their meeting of September 5, 2000, the City Council of the City of San Juan Capistrano adopted Resolution No. 00-9-5-3, which approved the Agreement to Jointly Construct and Operate Reclaimed Water Treatment Facilities at the J. B. Latham Waste Water Treatment Plant in Dana Point. A copy of Resolution No. 00-9-5-3, and eight signature pages, signed by the City, are enclosed for your information. The fully-signed copy of the Agreement should be returned to the City Clerk's office for the City's official records. Please feel free to contact Amy Amirani, Public Works, Director, if you have any questions. Very truly yours, 321_ U �� Cheryl Johnson City Clerk Enclosure onuo use is San Juan Capistrano: Preserving the Past to Enhance the Future RESOLUTION NO. 00-9-5-1, APPROVAL OF APPEAL OF PLANNING DIRECTOR'S LAND USE DETERMINATION ON NARROW GAUGE TRAIN RIDE -JONES FAMILY MINI FARM -A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING AN APPEAL OF THE PLANNING DIRECTOR'S LAND USE DETERMINATION REGARDING A MECHANICAL AMUSEMENT RIDE (TRAIN) IN THE "HISTORIC COMMERCIAL" DISTRICT OF THE LOS RIOS SPECIFIC PLAN FOR PROPERTY LOCATED AT 31791 LOS RIOS STREET(JONES FAMILY MINI FARM) 11. ADOPTION OF RESOLUTION RATIFYING THE APPROVAL OF INTERIM MODIFICATIONS TO THE CONDITIONS OF APPROVAL FOR SADDLEBACK VALLEY CHRISTIAN SCHOOL (460.20/410.60/550.10) As set forth in the Report dated September 5, 2000, from the Engineering and Building Director, the following Resolution ratifying the City Council's August 15, 2000, approval of interim modifications to the conditions of approval for the Saddleback Valley Christian School, located at 26333 Oso Road, was adopted: RESOLUTION NO. 00-9-5-2, APPROVING INTERIM MODIFIED CONDITIONS OF APPROVAL - SADDLEBACK VALLEY CHRISTIAN SCHOOL-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, RATIFYING THE APPROVAL OF INTERIM MODIFICATIONS TO CONDITIONS OF APPROVAL (SADDLEBACK VALLEY CHRISTIAN SCHOOL) 12. ADOPTION OF RESOLUTION APPROVING AMENDMENT NO. 2 TO THE AGREEMENT FOR ACQUISITION USE, OPERATION, MAINTENANCE AND EXPANSION OF SEWAGE TREATMENT PLANT (SERRA/PROJECT COMMITTEE NUMBER 2) (600.50) 1 As set forth in the Report dated September 5, 2000, from the Public Works Director, the following Resolution was adopted approving an Agreement to Jointly Construct and Operate Reclaimed Water Treatment Facilities at the J. B. Latham Waste Water Treatment Plan in Dana Point: RESOLUTION NO. 00-9-5-3 APPROVING AGREEMENT- PROJECT COMMITTEE NO. 2 (SOUTHEAST REGIONAL RECLAMATION AUTHORITY)-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING AN AGREEMENT TO JOINTLY CONSTRUCT AND OPERATE RECLAIMED WATER TREATMENT FACILITIES AT THE J. B. LATHAM WASTE WATER TREATMENT PLANT IN DANA POINT (SOUTHEAST REGIONAL RECLAMATION AUTHORITY/PROJECT COMMITTEE NO. 2) City Council Minutes -5- 915100 AGENDA ITEM September 5, 2000 TO: George Scarborough, City Manager FROM: Amy Amirani, Public Works Director SUBJECT: Consideration of Approval of Amendment No. 2 to the Agreement for Acquisition, Use, Operation, Maintenance and Expansion of Sewage Treatment Plant. (SERRA/ Project Committee Number 2.) RECOMMENDATION By motion, approve the resolution entering into an Agreement to Jointly Construct and Operate Reclaimed Water Treatment Facilities at the J. B. Latham Waste Water Treatment Plant in Dana Point. Authorize the Mayor to execute the Amendment No. 2 to the Agreement. SITUATION Drought conditions occur periodically in California. In the drought period of 1987 — 1992 urban water agencies were unable to meet the existing consumption patterns of their customers. The Agencies developed policies for resolving the imbalance between supply and demand that included: • Quantity restrictions, limiting the amount of water a household could buy in a given period, often accompanied by price surcharges for use above the limit. • Type-of-use restrictions, such as prohibitions on washing off driveways and sidewalks or irrigating residential lots during the day. • Public education programs, including bill inserts; television, radio, and newspaper announcements; school programs; and public displays. • Device distribution programs, involving low-flow showerheads, toilet dams, and toilet leak detectors, or rebates for installing ultra-low-flush toilets. • Price increases, tiered rate structures involving higher prices for all levels of water use, or increasing block rate structures. • Supply augmentation strategies, including increased groundwater pumping, and greater use of reclaimed water. The Capistrano Valley Water District was also affected by the drought and implemented some of these solutions. In planning for the next drought, District Staff has sought to develop alternative sources of water that will not run out in another long-term drought, and would reduce demand on the potable system. Reclaimed water meets both criteria. FOR CIN COUNCIL AGENT 012, AGENDA ITEM • • September 5, 2000 Reclaimed Water. At its meeting of September 21, 1999 the Board approved a contract with Black and Veatch to obtain a low interest loan from the California State Revolving Funds Program. At its meeting of January 18, 2000, the Board approved Non- Domestic Water Master Plan (NDWMP) which projected an annual demand of 4,690 acre feet per year (AF/yr), and an available groundwater supply of only 1,825 AF/yr. On February 1, 2000 the Board accepted the Local Resources Program (LRP) Grant from the Metropolitan Water District, which offered the District a payment of $150 per AF of delivered low quality ground water, and/or reclaimed water. And at its meeting of May 2, 2000 the Board approved NDW Funding Plan in Concept. At their meeting of June 29, 2000 the SERRA PC2 Board approved this agreement. In order to complete its application for the low interest loan, to expand the NDW system, and to take full credit of the LRP grant, the District must secure a method of producing reclaimed water. The agreement to jointly construct and operate reclaimed water treatment facilities at the regional plant in Dana Point will secure a means of reclaimed water production. The agreement provides a framework for future development and is not binding upon any party to construct any facilities. At each point in which the costs for a particular phase have been determined and the funding has been secured, that phase will be presented to the Boards of all the parties for binding adoption. If at any point any or all of the Boards decide they no longer have any interest in the project, they can withdraw, loosing only the money spent or committed to spend. The responsibility for cost for construction, operation and maintenance of the facilities are divided based upon whether the costs are variable or fixed costs. The variable costs are apportioned based on the amount of recycled water used. The fixed costs are apportioned based on the owned capacity. This agreement is one of three that must be entered into before design and construction of a reclaimed production and distribution facility can begin. The other two related agreements are: 1) The Board's consideration of an agreement to the rights to secondary effluent from the J. B. Latham Plant, scheduled for October 3, 2000. 2) The Board's consideration of an agreement to jointly construct, own, and operate transmission facilities for the reclaimed water to be produced at J. B. Latham. On this evening's agenda as a separate item, the Board will consider the adoption of developers fees for the Non-Domestic Water System. The other two financing solutions will be presented to the Board later this year. Page 2 AGENDA ITEM • • September 5, 2000 Reclaimed Water. COMMISSION RECOMMENDATIONS Not applicable. FINANCIAL CONSIDERATIONS There are no cost impacts at this time. NOTIFICATION Not applicable. ALTERNATE ACTION 1. By motion, approve the resolution entering into an Agreement to Jointly Construct and Operate Reclaimed Water Treatment Facilities at the J. B. Latham Waste Water Treatment Plant in Dana Point. Authorize the Mayor to execute the Amendment No. 2 to the Agreement. 2. Request additional information from staff. RECOMMENDATION By motion, approve the resolution entering into an Agreement to Jointly Construct and Operate Reclaimed Water Treatment Facilities at the J. B. Latham Waste Water Treatment Plant in Dana Point. Authorize the Mayor to execute the Amendment No. 2 to the Agreement. Respectfully submitted, Prepared by, , Amy Amirani Eric P. Bauman Public Works Director Associate Engineer Attachments: Amendment No. 2 to the Agreement for Acquisition, Use, Operation, Maintenance and Expansion of Sewage Treatment Plant of the City of San Juan Capistrano By South East Regional Reclamation Authority for and on Behalf of Project Committee No. 2 (The Advanced Waste Water Treatment Project Committee No. 2/AWT) Page 3 RESOLUTION NO. 00-9-5-3 APPROVING AGREEMENT - PROJECT COMMITTEE NO. 2 (SOUTHEAST REGIONAL RECLAMATION AUTHORITY) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING AN AGREEMENT TO JOINTLY CONSTRUCT AND OPERATE RECLAIMED WATER TREATMENT FACILITIES AT THE J. B. LATHAM WASTE WATER TREATMENT PLANT IN DANA POINT (SOUTHEAST REGIONAL RECLAMATION AUTHORITY/PROJECT COMMITTEE NO. 2) WHEREAS, at its meeting of January 18, 2000, the Board of Directors of the Capistrano Valley Water district approved a Non-Domestic Water Master Plan which projected the need for 2,865 acre-feet per year of reclaimed water. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby make the following findings: 1. The agreement will allow the City to produce the reclaimed water it needs to meet the projected non-domestic water demands. 2. The City Council of the City of San Juan Capistrano hereby approves the "Agreement for the Acquisition, Use, Operation, Maintenance and Expansion of Sewage Treatment Plan of the City of Sa Juan Capistrano By South East Regional Reclamation Authority for and on Behalf of Project Committee No. 2." PASSED, APPROVED, AND ADOPTED this 5`" day of September, 2000. OLLE CAM ELL, MAYOR ATTEST: CITY CLERK -1- pST RF • o C'0 Cl) ERRA SOUTH EAST REGIONAL RECLAMATION AUTHORITY 9 30290 RANCHO VIEJO ROAD • SAN JUAN CAPISTRANO, CA 92675 • (949)489-7735• FAX (949) 489-7724 n � � OQ �gTION Pk July 13, 2000 Ms. Amy Amirani Director of Public Works CITY OF SAN JUAN CAPISTRANO 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: AMENDMENT NO. 2 TO THE SERRA PC 2 AGREEMENT ADVANCED WASTEWATER TREATMENT PROJECT— PC 2/AWT Dear Amy: Enclosed herewith for approval and execution by the City of San Juan Capistrano is the above-referenced Amendment. At their meeting of June 29, 2000 the SERRA PC 2 Board approved this Amendment subject to non-substantive changes by Legal Counsel and resolution of the cost allocation. Legal Counsel has now reviewed this Amendment and the cost allocation formula was resolved by the three PC 2/AWT Members participating the preliminary design report. A redline copy of the Amendment is also attached for use by your staff. Please retur nal signature pages to this office. As indicated, this Amendment execu ed in counterparts, each of which shall be deemed an original, but all together constitute one and the same Amendment. A fully executed Amendment will be returned to the City for your files. Thank you. Very truly yours, SOUTH EAST REGIONAL RECLAMATION AUTHORITY Thomas R. Rosales Assistant to the General Manager/Director of Environmental and Technical Services rtl Enclosures cc: Pat Giannone, BAW&G Dan Ferons, SMWD George Scarborough, CSJC Eric Bauman, CSJC A public agency created by: CITY OF SAN CLEMENTE • CITY OF SAN JUAN CAPISTRANO MOULTON NIGUEL WATER DISTRICT • SANTA MARGARITA WATER DISTRICT • SOUTH COAST WATER DISTRICT 0 _ 9. RENEWAL OF CROSSING GUARD CONTRACT WITH ALL CITY MANAGEMENT SERVICES (600.30) s set forth in the Report dated June 16, 1998 from the Chief of Police Services, the ndment to the Agreement with All City Management Services for the services of three cros ' g guards was approved for the school year beginning July 1, 1998 through June 30, 1998 i the amount of$25,834. 10. RENEW OF CONTRACT WITH TRAUMA INTERVENTION PROGRAMS INC. (600.30 As set forth in Report dated June 16, 1998 from the Chief of Police Services, the Agreement with uma Intervention Programs, Inc. to provide volunteer trauma intervention response critical incidents in the amount of$3,396.72 was approved. 11. DENIAL OF CLAIM OF NITA PARKS FOR DAMAGES 170.10) As set forth in the Report dated a 16, 1998 from the City Attorney, the claim of Bonita Parks for damages was denied in it entirety. 12. APPROVAL OF LAND USE AGREE T WITH ORTEGA PROPERTIES FOR THE STOCKPILE AT SAN JUAN CRE ORTEGA PROPERTIES 600.30) As set forth in the Report dated June 16, 1998 fr the Engineering and Building Director, the Land Use Agreement with Ortega Properties the use of private property adjacent to San Juan Creek to stockpile dirt needed for restL tif the Creek banks,and the stockpile removal and return of the property to its oition by October 31, 1998, was approved. Council Member Campbell requestt thanking Ortega Properties be sent. 13. RECEIVE AND FILE WARRANTS OF JU (300.30) The list of Demands dated June 4, 1998 in the amount of$666,722.86 was dered received and filed. 4. APPROVAL OF AMENDMENT NO. 1 TO THE SOUTH EAST RECLAMATION AUTHORITY PROJECT COMMITTEE 2 AGREEMENT (600.50) T As set forth in the Report dated June 16, 1998 from the Engineering and Building Director, Amendment No. 1 to the South East Reclamation Authority Project Committee 2 Agreement was approved. The Amendment provided for the Capistrano Beach Water District's membership;for transfers of capacity to Capistrano Beach Water District;for verification of liquids and solids handling capacity; and, for clarification of terms for allocating costs. City Council Minutes -5- 6/16/98 AGENDA ITEM June 16, 1998 TO: George Scarborough, City Manager FROM: William M. Huber, Director of Engineering& Building SUBJECT: Consideration of Amendment No. 1 to the South East Reclamation Authority (SERRA) Project Committee 2 (PC2)Agreement RECOMMENDATION It is recommended that the City Council approve the Proposed Amendment No. 1 to the South East Reclamation Authority(SERRA) Project Committee 2 (PC2)Agreement. SITUATION A. Summary and Recommendation Precedent to the sale of sewer capacity to Capistrano Beach Water District, it is necessary to modify the Member Agency Agreement with SERRA that spells out the various ownership capacities. Concurrently with the Amendment, SERRA is proposing to incorporate previous agreements into one document for ease in identifying all the issues. Staff concurs with the agreement and recommends its approval. B. Background For some time now the SERRA Board of Directors has been working to bring Capistrano Beach Water District (CBWD) into the SERRA Plant. CBWD has agreed to purchase additional capacity from the various member agencies,contingent upon a State Funded Grant. To affect this change,two things must occur: 1) An Agreement with CBWD to sell capacity must be executed by each member having the capacity to sell. This Agreement is being worked on and will be presented to City Council when complete;2) The SERRA Agreement, with its member agencies that defines the ownership rights must be modified. This second item is the subject of this report. CBWD needs a total capacity of 1.5 million gallons per day(MGD) of both liquids & solids in the SERRA Plant.This is accomplished through a combination of available excess capacity from Santa Margarita Water District(SMWD),Dana Point Sanitary District(DPSD),and the City of San Juan Capistrano. In the case of San Juan Capistrano,Staff will be recommending City Council sell 0.5 MGD of liquids & 0.75 MGD of solids at a price of approximately $2,500,000. The capacity being proposed for sale by the City has been determined by both the City and SERRA to be in excess of our future needs based upon ultimate City build-out. Fc3 CC:Y COtbtiC&Z ACe� 14 In addition to the capacity revisions SERRA staff has taken the opportunity to incorporate into the Amendment previous transfer agreements and rights to provide a document that provides a complete ownership record and rights with reference to the source documents. Should CBWD fail to become a SERRA Member, the Agreement provides that the Amendment will still be effective among this Member Agencies. Staff concurs with the Proposed Amendment and recommends its approval. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS FINANCIAL CONSIDERATIONS If the sale is consumated, the City Sewer Fund will receive $2,500,000 in revenues to help offset Operation and Capital costs. Additionally, due to the lesser amount of ownership,the City's Annual Plant Treatment costs will be reduced by about$101,000 out of a$1,150,000 Budget for the Treatment Plant, which is a 9%+/- reduction. PUBLIC NOTIFICATION David Caretto, SERRA COMMISSION BOARD REVIEW The SERRA Project Committee 2 Board approved the Proposed Amendment No. 1 at its May 18, 1998 meeting. ALTERNATE ACTIONS 1. Approve the Amendment as presented 2. Do not approve Amendment 3. Refer to staff for additional information RECOMMENDATION It is recommended that the City Council approve the Proposed Amendment No. 1 to the South East Reclamation Authority (SERRA) Project Committee 2 (PC2) Agreement. Resp ful submi ed, illiam M. Huber Director of Engineering& Building WMH:cc *4je,"cL-,e 3 - 3 - 7.6 RECEIVED MEMORANDUM MAR Z T TO: Honorable Mayor, James K. Weathers FROM: James S. Okazaki, City Attorney DATE: February 27 , 1976 SUBJECT: SERRA (Southeast Regional Reclamation Authority) The following constitutes our review of the agreement dated June 28 , 1973 , and relating to the transfer of the sewage treat- ment plant from the City to SERRA: As a matter of background information, SERRA came into being when the California Regional Water Quality Control Board , San Diego Region, urged certain affected agencies to combine their efforts to tackle the waste water treatment and reclama- tion problems of the San Juan Basin. The City already had an 1 mgd sewage treatment facility located on land owned by Dana Point Sanitary District. SERRA therefore entered into a written agreement with San Juan Capistrano and the Dana Point Sanitary District to purchase the sewage treatment facility and property upon which it is situated upon the completion of expansion of the facilities by SERRA to 9 mgd. At the time of the transfer the City will receive $650,000.00 for its 1 mgd facility, $71,269 .00 for its interest in the real property and $6 ,000.00 for miscellaneous supplies and equipment . The expansion of the treatment facility from 1 to 6 mgd was shared by the City of San Juan Capistrano, the Moulton-Niguel Water District and the Santa Marguerita Water District on a 10/80/10 basis . Most of the costs for that expansion was , however, funded by state and federal government funds . The further expansion of the sewage treatment facilities to 9 mgd is to be accomplished by SERRA, and the costs are to be allocated between four of the participating agencies in the following ratio: City of San Juan Capistrano 33 .33% Dana Point Sanitary District 33 .33% Moulton-Niguel Water District 16 .67% Santa Marguerita Water District 16 .67/ It would appear to us that the terms and conditions of the agree- ment will have been met upon the completion of the expansion to 9 mgd . It is our opinion, therefore, that such transfer must be ii made upon the tender by SERRA of the stuns of money referred tiro^�J\ J , i 1 1, Honorable Mayor, James K. Weathers February 27 , 1976 Page 2 above , and a verification that the facility has indeed been expanded to the aforesaid 9 mgd. As far as the operation and maintenance are concerned, Section 12 of the agreement provides that if the Authority is to operate the facilities , first pri- ority for employment shall be given to the operating personnel of the City of San Juan Capistrano and Dana Point Sanitary District to the extent that such employees make application for the positions . On the other hand, as the new owner of the facility, SERRA can contract for such operation and maintenance. Respectfully submitted, James S. OkazWki City Attorney JSO/j i MEMORANDUM TO: Memo to File FROM: Maria Guevara, Secretary DATE: August 2, 2002 SUBJECT: South Orange County Wastewater Authority (SOCWA) On March 20, 2001, SOCWA was created, eliminating Aliso Water Management Agency (AWMA), South East Regional Reclamation Authority(SERRA)and South Orange County Reclamation Authority (SOCRA). Agreements prior to March 20, 2002, may be found under SERRA. Agreements after March 20„ 2002, may be found under SOCWA.