02-0903_CVWD_Minutes_Regular MeetingMINUTES
September 3, 2002
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 (General Manager) regarding sale/lease of that
certain real property described as APN 668-101-03.
Chairman Bathgate called the Regular Meeting of the Board of Directors of the Capistrano
Valley Water District to order at 9:24 p.m. in the City Council Chamber.
ROLL CALL
BOARD MEMBERS PRESENT: Wyatt Hart, David M. Swerdlin, Vice Chairman John S.
Gelff and Chairman Diane Bathgate
BOARD MEMBERS ABSENT: Director Collene Campbell
STAFF PRESENT: George Scarborough, General 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; AmyAmirani, Public Works Director; Lt. J. B. Davis, Chief of Police Services; and,
Dawn Schanderl, Deputy City Clerk.
CONSENT CALENDAR
Board Action: Moved by Director Hart, seconded by Director Swerdlin and carried
unanimously, 4-0, to approve items 1 and 2 as recommended by Staff.
1. MINUTES FROM THE REGULAR MEETING OF AUGUST 6, 2002, APPROVED
AS SUBMITTED
2. AMENDMENT TO AGREEMENT WITH CAMP DRESSER & MCKEE, INC.,
APPROVED FOR TERMINAL RESERVOIR NO. 2 STRUCTURAL AND
GEOTECHNICAL INVESTIGATION AND REPAIR PROJECT IN THE AMOUNT OF
$126,636 APPROPRIATED FROM THE WATER CAPITAL IMPROVEMENT FUND
TO CiP # 753 (600.70)
BOARD ACTIONS:
CVWD Minutes 1 9-3-02
C1. RESOLUTION NO. CVWD 02-09-03-01 ADOPTED AWARDING AGREEMENT
WITH ECO RESOURCES, INC., FOR DESIGN, CONSTRUCTION, FINANCING
AND OPERATION AND EXECUTION GUARANTY AGREEMENT WITH
SOUTHWEST WATER COMPANY; CHAIRMAN AUTHORIZED TO EXECUTE
AGREEMENTS, TAX EXEMPT PUBLIC FINANCING CONCEPT APPROVED
THROUGH SAN JUAN BASIN AUTHORITY AND STAFF TO PROCEED WITH
BOND ISSUANCE; SITE PREPARATION FOR RELOCATION OF ORANGE
COUNTY HEADSTART FACILITY APPROVED, $650,000 APPROPRIATED TO
PAY FOR CONTRACT SERVICES AND FINANCIAL NEGOTIATION WORK,
COSTS TO BE REIMBURSED BY ECO (600.70)
Project Description: On September 18, 2001, the Capistrano Valley Water District
Board of Directors authorized the General Manager to enter into negotiations with
ECO Resources, Inc. to design, construct, finance and provide long-term operations
of the San Juan Basin Phase I Groundwater Recovery Plant. In the Agreement,
ECO will agree to build and operate a 5.14 mgd plant that will produce 4,800 afly
of drinking water for a fixed guaranteed maximum purchase price of $24,090,607
and a fixed annual service fee of $1,094,900. The project will provide the District
with approximately 50% of its annual production requirements through local ground
water and provide emergency storage capacity. Staff recommends approval of the
Service Contract with ECO Resources Inc.; the Service Contract Guaranty
Agreement, a long-term financing concept with San Juan Basin Authority; and,
authorize staff to proceed with the issuance of debt. The execution of the Service
Contract will require the relocation of the Orange County Headstart operation to the
vicinity of the San Juan Capistrano Regional Library and Serra Continuation School.
Staff also recommends the Board to authorize the commencement of the site
preparation in anticipation of this relocation.
Written Communications: Report and Supplement Reportdated September 3,2002,
prepared by Amy Amirani, Public Works Director.
Presentation: Amy Amirani, Public Works Director, reviewed the staff
recommendation.
Council Comment::
Council Member Swerdlin stated he was not comfortable with the level of risk
involved and did not support the project.
Board Action: Moved by Director Hart, seconded by Vice Chairman Gelff and
carried 3-1 to adopt Resolution CVWD No. 02-09-03-01 entitled "A RESOLUTION
OF THE BOARD OF DIRECTORS OF THE CAPISTRANO VALLEY WATER
DISTRICT, CALIFORNIA, AUTHORIZING AWARD AND EXECUTION OF A
SERVICE CONTRACT WITH ECO RESOURCES, INC. FOR THE DESIGN,
CONSTRUCTION, FINANCING AND OPERATION OF THE SAN JUAN BASIN
CVWD Minutes 2 9-3-02
DESALTER PROJECT AND THE FORM AND EXECUTION OF A GUARANTY
AGREEMENT WITH SOUTHWEST WATER COMPANY AS GUARANTOR OF
THE PERFORMANCE OF THE OBLIGATIONS OF ECO RESOURCES, INC,
UNDER THE SERVICE CONTRACT;" Chairman authorized to execute the
appropriate Service Contract and Service Guaranty Agreement; Tax-exempt Public
Financing Concept approved through the San Juan Basin Authority and Staff
authorized to proceed with issuance of bonds to provide funding for the project;
commencement of site preparation for relocation of the Orange County Headstart
Facility approved, and the City Manager authorized to execute any necessary
agreement; $650,000 appropriated from Water Enterprise Fund to the Project CIP
#758 to pay for services of Hawkins, Delafield & Wood and Malcolm Pirnie for
additional contract services and financial negotiation work, costs to be reimbursed
by Eco.
ROLL CALL
AYES: BOARD MEMBERS: Hart, Gelff and Chairman Bathgate
NOES: BOARD MEMBERS: Vice Chairman Gelff
ADJOURNMENT
There being no further business, Chairman Bathgate adjourned the meeting at 9:47 p.m.
to Tuesday, October 1, 2002, at 5:30 p.m. for Closed Session and 7:00 p.m. for the Public
Business Session, in the City Council Chamber.
Respectfully submitted,
JJ,
M ARET R. MONAHAN, CLERK OF THE BOARD
Approved: October 1, 2002
ATTEST:
CHAIRMAN BATHGA
CVWD Minutes
9-3-02
NOTICE OF ADJOURNMENT OF MEETING OF
CAPISTRANO VALLEY WATER DISTRICT
CALIFORNIA
NOTICE IS HEREBY GIVEN, that the Capistrano Valley Water District at its Regular
meeting of October 1, 2002, adjourned said meeting to Tuesday, October 15, 2002 at
5:30 p.m., for Closed Session and 7:00 p.m. for the public Business Session, in the City
Council Chamber, 32400 Paseo Adelanto, San Juan Capistrano.
DATED: October 2, 2002
Mardar6t R. Monahan, Clerk of the Board
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF SAN JUAN CAPISTRANO
SS AFFIDAVIT OF POSTING
I, MARGARET R. MONAHAN, City Clerk of the City of San Juan Capistrano, do hereby
declare that the above Notice was posted at or near the door of the City Council
chamber on October 2, 2002 within 24 hours of adjournment of the above-named
meeting.
I declare under penalty of perjury that the foregoing is true and correct.
L"
ret R. Monahan, City Clerk
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