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02-0219_CVWD_Minutes_Adjourned Regular MeetingMINUTES February 19, 2002 ADJOURNED REGULAR MEETING CAPISTRANO VALLEY WATER DISTRICT BOARD OF DIRECTORS CLOSED SESSION 610.85 - 5:30 P.M. Pursuant to Government Code Section 54956.8 the Board of Directors conferred with its real property negotiator (Executive Director) concerning the potential lease of land, described as APN 668-101-03, from the City of San Juan Capistrano. Its negotiator is the City Manager. Chairman Bathgate called the Adjourned Regular Meeting of the Board of Directors of the Capistrano Valley Water District to order at 8:06 p.m. in the City Council Chamber. ROLL CALL BOARD MEMBERS PRESENT: Wyatt Hart, Collene Campbell, David M. Swerdlin, Vice Chairman John S. Gelff and Chairman Diane Bathgate BOARD MEMBERS ABSENT: None STAFF PRESENT: George Scarborough, General Manager; Julia Silva, Assistant City Manager; John Shaw, Legal Counsel; Meg Monahan, Clerk of the Board; Cynthia L. Russell, Administrative Services Director; Thomas Tomlinson, Planning Director; William M. Huber, Engineering and Building Director; Amy Amirani, Public Works Director; Al King, Jr., Community Services Director; and, Dawn Schanderl, Deputy City Clerk. CONSENT CALENDAR Board Action: Moved by Director Hart, seconded by Vice Chairman Gelff and carried unanimously, 5-0, to approve item 1 as recommended by Staff. MINUTES FROM THE ADJOURNED REGULAR MEETING OF JANUARY 15, 2002, APPROVED AS SUBMITTED. CVWD Minutes 2-19-02 BOARD ACTIONS: C1. GROUNDWATER RECOVERY PROJECT - PHASE I: NEGOTIATION TERMS FOR SERVICE CONTRACT WITH ECO RESOURCES AND TAX -EXEMPTED LEASE FINANCING CONCEPT WITH PFG ENERGY CAPITAL, INC. APPROVED AND RELATED AGREEMENTS WITH OTHER LOCAL AGENCIES TO FACILITATE PROJECT APPROVED IN-CONCEPT(600.70) Project Description: City staff and specialized outside contractors have negotiated terms for a design, build and operate Service Contract with ECO Resources, Inc., and long-term tax-exempt take-out financing through a third party financial group, PFG Energy Capital, Inc. Staff is also in the process of completing negotiations on agreements with adjoining jurisdictions to facilitate the Project. Negotiated terms for the specialized contractors' agreements and agreements in -concept with adjoining jurisdictions are before the Board of Directors for review and approval. Written Communications: Report dated February 19, 2002, prepared by Amy Amirani, Public Works Director. Oral Presentation: Amy Amirani, Public Works Director, reviewed the staff recommendation. Board Member Swerdlin was opposed to the project, expressing concerns about increased costs and existence of numerous unknown factors. He felt that past success with conservation efforts reduced the need for storage capacity. Board Member Campbell and Chairman Bathgate felt that the District should continue to pursue additional storage capacity. Board Member Hart felt that the District should proceed cautiously, anticipating that costs would increase whether or not the District proceeded with the project. Board Action: Moved by Director Hart, seconded by Director Campbell and carried, 4-1, to approve negotiated deal points of the Service Contract between ECO Resources, Inc., and the Water District for design, construction and long-term operation of the project; tax -exempted lease financing concept between PFG Energy Capital, Inc., and the Water District for long-term financing of project approved; Agreements with other local agencies to facilitate the project approved in concept; and staff directed to return with final documents for all transactions at the March 5, 2002, Board of Directors' meeting. CVWD Minutes 2 2-19-02 1 1 ROLL CALL AYES: NOES: DIRECTORS: DIRECTORS: ABSTAIN: DIRECTORS: Hart, Campbell, Vice Chairman Gelff and Chairman Bathgate Swerdlin None ADJOURNMENT There being no further business, Chairman Bathgate adjourned the meeting at 8:24 p.m. to Tuesday, March 5, 2002, in the City Council Chamber. Respectfully submitted, R. MONAHAN, CLERK OF THE BOARD Adopted: March 19, 2002 ATTEST: ---U) CHAIRMAN BA CVWD Minutes 3 2-19-02