Reso 1364-10/2010RESOLUTION NO. 1364
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VALLECITOS WATER DISTRICT AGREEING TO TERMINATE
ALL EXISTING AGREEMENTS RELATING TO THE
CARLSBAD DESALINATION PROJECT
WHEREAS, the Vallecitos Water District ("District") has reviewed the Term Sheet
dated July 22, 2010 ("Term Sheet") between the San Diego County Water Authority
("Water Authority") and Poseidon Resources (Channelside) LP ("Poseidon") for a
proposed water purchase contract for the Carlsbad Desalination Project; and
WHEREAS, the District represents and warrants that there are no agreements
between the District and any other party that would impair or impede the Water
Authority from executing a water purchase contract as contemplated by the Term Sheet;
and
WHEREAS, the District waives and agrees to not assert any claim or cause of
action for money damages or other legal or equitable remedy against the Water
Authority, or Poseidon, or both the Water Authority and Poseidon arising from the
negotiation or execution of a water purchase contract as contemplated by the Term
Sheet; and
WHEREAS, the District intends to terminate any existing agreement it may have
for purchase or delivery of water from the project described in the Term Sheet on or
prior to the date of any water purchase contract between the Water Authority and
Poseidon as contemplated by the Term Sheet; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Vallecitos Water District as follows:
SECTION 1: The District requests that the Water Authority enter into
negotiations with Poseidon for a water purchase contract pursuant to the Term Sheet.
SECTION 2: Nothing in this Resolution constitutes a commitment, direction, or
other limitation on the discretion of the District or the District's representative to the
Water Authority with respect to consideration by the Water Authority Board of Directors
of a water purchase agreement as contemplated by the Term Sheet.
SECTION 3: This Resolution shall be effective immediately upon passage.
Resolution No 1364 Page 2
PASSED, APPROVED AND ADOPTED by the Board of Directors of the
Vallecitos Water District at a regular meeting held on the October 6, 2010, by the
following roll call vote:
AYES: GENTRY, HANNAN, POLTL, SHELL, FERGUSON
NOES:
ABSTAIN:
ABSENT: / / i>
Marga~t E. FergusorVf
Board of Directors
Vallecitos Water District
ATTEST:~ /~~~-
// .~i ~/ 'G%''' /
Dennis O. Lamb, Secretary
Board of Directors
Vallecitos Water District