Page 129 - Yucaipa Valley Water District
P. 129
Director Memorandum No. 16-040 Page 9 of 24
DATE: April 19, 2016
TO: Board of Directors
FROM: Bob Tincher, Manager of Water Resources
SUBJECT: Proposed Purchase and Sale of Inland Empire Brine Line
Capacities
This item was considered at a Board workshop held on April 11, 2016. Those Board
members in attendance requested that it be forwarded to the Board for consideration
including the condition that Yucaipa Valley Water District sign the proposed
agreement with Valley District before Valley District executes the agreements.
Yucaipa Valley Water District would like to purchase additional Inland Empire Brine
Line (Brine Line) pipeline capacity and treatment and disposal capacity. EnerTech,
a company that essentially filed for bankruptcy protection, would like to sell their
pipeline capacity and treatment and disposal capacity (EnerTech Capacities).
EnerTech also owes Valley District $277,065.35 in accumulated fees associated with
its EnerTech Capacities. To recover these fees, Valley District would like to purchase
the EnerTech Capacities, less the amount of the fees owed to Valley District, and then
sell the EnerTech Capacities to YVWD. YV WD would also like to purchase 0.20 MGD
of Valley District’s pipeline capacity. The net result of the transaction would be that
Valley District would recover the fees that are owed by EnerTech and would receive
Yucaipa Valley Water District - April 20, 2016 - Page 127 of 158
DATE: April 19, 2016
TO: Board of Directors
FROM: Bob Tincher, Manager of Water Resources
SUBJECT: Proposed Purchase and Sale of Inland Empire Brine Line
Capacities
This item was considered at a Board workshop held on April 11, 2016. Those Board
members in attendance requested that it be forwarded to the Board for consideration
including the condition that Yucaipa Valley Water District sign the proposed
agreement with Valley District before Valley District executes the agreements.
Yucaipa Valley Water District would like to purchase additional Inland Empire Brine
Line (Brine Line) pipeline capacity and treatment and disposal capacity. EnerTech,
a company that essentially filed for bankruptcy protection, would like to sell their
pipeline capacity and treatment and disposal capacity (EnerTech Capacities).
EnerTech also owes Valley District $277,065.35 in accumulated fees associated with
its EnerTech Capacities. To recover these fees, Valley District would like to purchase
the EnerTech Capacities, less the amount of the fees owed to Valley District, and then
sell the EnerTech Capacities to YVWD. YV WD would also like to purchase 0.20 MGD
of Valley District’s pipeline capacity. The net result of the transaction would be that
Valley District would recover the fees that are owed by EnerTech and would receive
Yucaipa Valley Water District - April 20, 2016 - Page 127 of 158
