WATER SUPPLY PLANNING COMMITTEE
ITEM:		ACTION ITEM
2.	DEVELOP RECOMMENDATION TO THE BOARD ON AUTHORIZATION OF A CONTRACT FOR BOND COUNSEL SERVICES RELATED TO GROUNDWATER REPLENISHMENT PROJECT WATER PURCHASE AGREEMENT
Meeting Date:			September 16, 2013	Budgeted:	Yes
From:			David J. Stoldt General Manager	Program/	Groundwater Replenishment Project
				Line Item No.:	1-5-1
Prepared By:			David J. Stoldt	Cost Estimate:	Not to exceed $90,000
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed this item on September 9, 2013 and recommended approval.
CEQA Compliance: N/A

SUMMARY: The successful permanent financing of the Groundwater Replenishment (GWR) project will depend on a secure contract for the purchase of potable product water by Cal-Am. That contract will be known as a Water Purchase Agreement (WPA).

In the July 31, 2013 ”Large” Settlement Agreement the Parties agreed to proceed expeditiously with development of a WPA. There are many layers of complexity and specialized Bond Counsel services are required. The section of the Settlement Agreement relating to GWR is attached as Exhibit 2-A. Issues relating to the WPA appear throughout. The General Manager is proposing extending the District’s existing Bond Counsel, Sidley Austin, represented by Eric Tashman, to serve in this capacity. Costs will be recovered from the issuance of the debt, however if the GWR project does not go forward and debt is not issued, then the District will have incurred the costs out-of-pocket.

RECOMMENDATION: The Committee should recommend that the Board of Directors approve extending the services of Sidley Austin to provide Bond Counsel services for a GWR WPA and the expenditure of up to $90,000. The Administrative Committee in a 3-0 vote recommended approval of the contract at its meeting of September 9, 2013.

EXHIBITS

2-A Overview of Settlement Agreement as it Relates to GWR

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