Page 130 - Yucaipa Valley Water District
P. 130
Director Memorandum No. 16-040 Page 10 of 24
the proceeds from the sale of 0.20 MGD of its pipeline ca pacity, as summarized in the
below table:
Purchase
Description from Sale to
EnerTech YVWD
EnerTech Pipeline Capacity, 0.30 MGD (1,125,000.00) 1,125,000.00
EnerTech Treatment and Disposal Capacity, (1,337,643.00) 1,337,643.00
0.30 MGD
Valley District Pipeline Capacity, 0.20 MGD 750,000
Less fees owed (to date) $277,065.35
TOTAL ($2,185,577.65) $3,212,643.00
The amount of fees owed by EnerTech will be reconciled the day the transaction is
completed, as described in the attached agreement which was prepared by House
Counsel. Staff recommends approval of this transaction subject to YVWD signing the
agreement with Valley District before Valley District executes the agreements to
complete this transaction.
Background
The below diagram illustrates payment relationships for Brine Line pipeline
capacity, treatment and disposal service, and the contractual relationship between
each participant:
EnerTech SBVMWD SAWPA OCSD
(Discharger) (Permitting) (Brine Line Owner) (Treatment/Disposa
In June of 2013, Valley District received no tice that one of the Brine Line dischargers
in its service area, EnerTech Environmental California, LLC (EnerTech), executed a
general assignment for the benefit of credito rs (Assignment). An Assignment is a less
expensive alternative to bankruptcy. At the time Valley District learned of the
Assignment, EnerTech owed Valley District over $100,000 in fees. House legal
Yucaipa Valley Water District - April 20, 2016 - Page 128 of 158
the proceeds from the sale of 0.20 MGD of its pipeline ca pacity, as summarized in the
below table:
Purchase
Description from Sale to
EnerTech YVWD
EnerTech Pipeline Capacity, 0.30 MGD (1,125,000.00) 1,125,000.00
EnerTech Treatment and Disposal Capacity, (1,337,643.00) 1,337,643.00
0.30 MGD
Valley District Pipeline Capacity, 0.20 MGD 750,000
Less fees owed (to date) $277,065.35
TOTAL ($2,185,577.65) $3,212,643.00
The amount of fees owed by EnerTech will be reconciled the day the transaction is
completed, as described in the attached agreement which was prepared by House
Counsel. Staff recommends approval of this transaction subject to YVWD signing the
agreement with Valley District before Valley District executes the agreements to
complete this transaction.
Background
The below diagram illustrates payment relationships for Brine Line pipeline
capacity, treatment and disposal service, and the contractual relationship between
each participant:
EnerTech SBVMWD SAWPA OCSD
(Discharger) (Permitting) (Brine Line Owner) (Treatment/Disposa
In June of 2013, Valley District received no tice that one of the Brine Line dischargers
in its service area, EnerTech Environmental California, LLC (EnerTech), executed a
general assignment for the benefit of credito rs (Assignment). An Assignment is a less
expensive alternative to bankruptcy. At the time Valley District learned of the
Assignment, EnerTech owed Valley District over $100,000 in fees. House legal
Yucaipa Valley Water District - April 20, 2016 - Page 128 of 158
