Page 131 - Yucaipa Valley Water District
P. 131
Director Memorandum No. 16-040 Page 11 of 24
counsel, Bruce Varner, immediately submitted a claim for payment of these fees
which were never paid and have continued to accrue annually per Valley District’s
agreement with EnerTech.
In August 2013, EnerTech approached Valley District about the possibility of selling
its Brine Line pipeline capacity and treatment and disposal capacity (Brine Line
capacity). While Valley District itself does not have a direct use for Brine Line
capacity, Valley District was aware that YVWD was interested purchasing additional
Brine Line capacity. Valley District staff saw this possible transaction as an
opportunity to recover the fees owed Valley District by EnerTech.
YVWD currently owns 1.108 MGD of pipeline capacity and .295 MGD of treatment
and disposal capacity and would like to own 1.6 MGD of both. YVWD would like to
purchase the Enertech Capacities, excepting the amount EnerTech paid for extra
“strength” (70 mg/l each BOD and TSS), along with an additional 0.20 MGD of
pipeline capacity from Valley District. This transaction would increase YVWD’s
ownership to 1.608 MGD of pipeline capacity and .595 MGD of treatment and disposal
capacity.
Assuming this transaction is approved, the amount of remaining pipeline capacity
owned by Valley District would be 0.148 MGD. Valley District no longer owns
treatment and disposal capacity.
Staff Recommendation: Authorize staff to enter into (1) an agreement with the
Assignee representing EnerTech to purchase the EnerTech Capacities for an amount
of $2,185,577.65 and (2) an agreement to sell the EnerTech Capacities, along with
0.20 MGD of Valley District’s pipeline capacity, to YVWD for a total amount of
$3,212,643.00, for a net gain of $1,027,065.35. Valley District’s execution of these
agreements is conditioned upon YVWD first executing its agreement with Valley
District.
Yucaipa Valley Water District - April 20, 2016 - Page 129 of 158
counsel, Bruce Varner, immediately submitted a claim for payment of these fees
which were never paid and have continued to accrue annually per Valley District’s
agreement with EnerTech.
In August 2013, EnerTech approached Valley District about the possibility of selling
its Brine Line pipeline capacity and treatment and disposal capacity (Brine Line
capacity). While Valley District itself does not have a direct use for Brine Line
capacity, Valley District was aware that YVWD was interested purchasing additional
Brine Line capacity. Valley District staff saw this possible transaction as an
opportunity to recover the fees owed Valley District by EnerTech.
YVWD currently owns 1.108 MGD of pipeline capacity and .295 MGD of treatment
and disposal capacity and would like to own 1.6 MGD of both. YVWD would like to
purchase the Enertech Capacities, excepting the amount EnerTech paid for extra
“strength” (70 mg/l each BOD and TSS), along with an additional 0.20 MGD of
pipeline capacity from Valley District. This transaction would increase YVWD’s
ownership to 1.608 MGD of pipeline capacity and .595 MGD of treatment and disposal
capacity.
Assuming this transaction is approved, the amount of remaining pipeline capacity
owned by Valley District would be 0.148 MGD. Valley District no longer owns
treatment and disposal capacity.
Staff Recommendation: Authorize staff to enter into (1) an agreement with the
Assignee representing EnerTech to purchase the EnerTech Capacities for an amount
of $2,185,577.65 and (2) an agreement to sell the EnerTech Capacities, along with
0.20 MGD of Valley District’s pipeline capacity, to YVWD for a total amount of
$3,212,643.00, for a net gain of $1,027,065.35. Valley District’s execution of these
agreements is conditioned upon YVWD first executing its agreement with Valley
District.
Yucaipa Valley Water District - April 20, 2016 - Page 129 of 158
