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HomeMy WebLinkAbout; ; CMWD Preliminary Engineering Report S Aqueduct Connection; 1975-01-15WOODSIDE/KUBOTA & ASSOCIATES, INC. • MOIMBBRm 2965 Roosevelt St. .p. O.Box 1095 •Carlsbad, California 92008 • (714)729-1194 January 15, 1975 Board of Directors Carlsbad Municipal Water District 6480 El Camino Real Carlsbad, Calif. 92008 Subject: Preliminary Engineering Report - South Aqueduct Connection - Carlsbad Municipal Water District. Gentlemen: We transmit herewith the report entitled "South Aqueduct Connection" prepared by this office under your authorization. This report has been completed at this time to accomodate the current District-wide program of developing comprehensive alternative plans to identify vitally needed public water system facilities. Briefly, the study represents a continuation of our joint planning, construction, and systems operations initiated with the San Marcos County Water District for the La Costa Meadows service area. We have identified alternate plans with San Marcos for pipeline con- struction, aqueduct connections, and storage reservoir construction. We also gained the interest of Olivenhain Municipal Water District for participation in pipeline construction and the aqueduct connec- tion. We recommend the Board and staff review this report and we welcome any comments, suggestions, or questions. In addition, the District should consider the potential of including this project in the current evaluation of the "Tri-Agencies Pipeline Project" and its attendant financing program. Very truly yours . Jack Y. Ki/bota, District Engineer Carlsbad Municipal Water District JYK/le In Orange County. Santa Ana 7251 J WOOD WOODSIDK/KUBOT* « ASSOCi ATBS. INC. SOUTH AQUEDUCT CONNECTION A PRELIMINARY ENGINEERING REPORT FOR MAJOR TRANSMISSION FACILITIES - CONNECTION TO SAN DIEGO AQUEDUCT - STORAGE JANUARY, 1975 CARLSBAD MUNICIPAL WATER DISTRICT 6480 El Camino Real Carlsbad, California 92008 PREPARED BY: WOODSIDE/KUBOTA & ASSOCIATES. INC P.O. Box 1095 Carlsbad, California 92008 IBH WOOD WOODSIDB/KUBOTA A ASSOCIATES. INC I. INTRODUCTION: In 1959 our District commenced public water service to the area known as Improvement District No. 2 comprising the southerly one half of our twenty-thousand acre service area. Immediately this vast area came under production of various agricultural products followed by the commencement of intensive urban development in the resort community of La Costa. Our District was fortunate to have this new development commence in the southeasterly corner of our District and as the development continued to expand, public water service was initiated by the Olivenhain Municipal Water District and the San Marcos County Water District. In the meantime the development became sufficiently extensive so that a comprehensive master plan for public water system development was initiated and in 1971 our Board of Directors adopted a master plan, which included as its main artery a major transmission main in Alga Road, which would ultimately tap the San Diego Aqueduct System in the southerly reaches beyond our District boundary. With the deve- lopment of the area known as the La Costa Meadows, our District entered into a joint powers agreement with the San Marcos County Water District to construct jointly owned pipeline facilities for service to the Meadows areas. This action was prompted by a coopera- tive spirit on the part of both agencies and the need to be efficient with our water service requirement. For initial purposes, interim water service has been provided by the San Marcos County Water District and this preliminary engineering evaluation is for the basic purpose of determining viable alternatives for the completion of this South Aqueduct Connection to our District. Although this study has been under way for some time our need to con- clude the evaluation is based upon the increasing demands for water service beyond the scope of the interim capacity now available, pro- viding elevated storage for emergencies and peak flow, and also to take advantage of the potential monetary savings by the construction of a joint agencies pipeline, which will bring benefits to our neighbors, as well as ourselves. As construction costs continue to skyrocket it is essential that public water service agencies take the lead in developing efficient water system through practical coopera- tive effort. We are fortunate to have the able assistance and cooperation of the participating agencies and we acknowledge their contributions for the preparation of this report: San Marcos County Water District Mr. J. McKay, General Manager Mr. John Tanner, Neste, Brudin & Stone, District Engineering Consultant _ 1 - BHB WOOD WOODSIDE/KUBOTA A ASSOCIATES. INC. Olivenhain Municipal Water District Mr. Wm. General Hoi 1ingsworth, Manager La Costa Land Company Mr. Gerald E. Campbel1 Boyle Engineering, District Engineering Consultant Mr. Robert Ladwig, Rick Engineering, Engineering Consultant II SCOPE AND DESCRIPTION OF ENGINEERING EVALUATION The San Marcos County Water District and our District entered into a joint powers agreement dated January 19, 1972, (a copy of the agreement is an attachment to this report) for the construction, operation, and maintenance of our jointly owned Alga Road trans- mission main facilities that were constructed with funds advanced by the development. The agreement provides for hydraulic capacity of 13.33 cubic feet per second for Carlsbad and 5.0 cubic feet per second for San Marcos; or a total flow of 18.33 cubic feet per second. A second agreement, dated March 1, 1972, provided for interim water service from San Marcos County Water District and the procedures by which San Marcos and our District would continue our planning studies with the goal of extending this jointly owned facility to the third barrel of the San Diego Aqueduct System. In addition, both Districts have independently conducted engineering studies identifying the potential need for elevated distribution and storage and also have established the specific operating pressure zones for the respective water systems. Accordingly, it becomes a straight forward project to evaluate the various alternatives for the construction of a major pipeline that would extend from the existing terminus of the joint pipeline at the intersection of Melrose Avenue (future) and Alga Road to the San Diego Aqueduct. In the meantime the Olivenhain Municipal Water District has also experienced an upsurge in their capacity re- quirements as well as having a need to develop a plan for the di- stribution of filtered water throughout their entire District so that it becomes apparent that there is a practical alternative to consider a pipeline route which can accommodate the needs of Olivenhain as well as San Marcos and Carlsbad. - 7 IHH WOOD WOODSIDE/KUBOTA A ASSOCIATES. INC. It is also necessary to consider the possibility that a routing must be chosen, which is possible in the event the Carlsbad District was forced to proceed alone on a timely basis. In this latter situation the District must then attempt to relate its own overall objectives to some local water service requirements in an attempt to develop a project that is most efficient from a cost standpoint. An integral part of a functional public water system is elevated distribution storage capacity to accomodate daily operational controls, peak demand conditions, and fire-fighting requirements. Accordingly, the original 1971 Master Plan Study identified spe- cific storage requirements for our main transmission main and the La Costa service area. Likewise, the San Marcos District has also developed this specific need so we have evaluated this segment of our prepared joint project, or Carlsbad's construction alone. III. EVALUATION OF ALTERNATIVE PLANS FOR AGENCIES REQUIREMENTS: On the basis of a review of the three agencies water system re- quirements our study focuses upon two viable alternatives for joint pipeline facilities based upon cooperative efforts with our neigh- bors. Exhibit A is our study map and identifies pictorally Plan C-SM (Carlsbad and San Marcos), wherein our joint pipeline facility would be extended easterly along Alga Road to Rancho Santa Fe Road and we would proceed northerly along Rancho Santa Fe Road to our exist- ing water service connection at the intersection with Palomar Air- port Road. Plan C-SM-0 (Carlsbad, San Marcos and Olivenhain) would involve a three-agency pipeline traversing the proposed alignment of Melrose Avenue to the south through the intersection point with Questhaven Road and the pipeline would proceed southerly and easterly within the existing right-of-way of Questhaven Road to the crossing point of the San Diego Aqueduct System. Both of these joint pipeline alignments utilize the existing road rights-of-way or the specific alignments of future public roads to minimize the substantial expense of right-of-way. The third alternative, which is our Plan C (Carlsbad), is a varia- tion of a pipeline alignment developed for our District in studying the "Rancho Carillo" planned community, wherein a major pipeline is to be located in the reach of Melrose Avenue between Alga Road and Palomar Airport Road. In addition, there would be a separate high pressure water line paralleling our existing 27" pipeline easterly along Palomar Airport Road to Rancho Santa Fe Road. WOOD cot—Uj-TINO^^M^^M IB WOODSIDE/KUBOTA A ASSOCIATES. INC. In every instance our specific engineering evaluation takes into account the pressure gradients and flow requirements of our respec- tive agencies. We are very fortunate that with the hydraulic gradient of Elevation 975 feet (above Sea Level) at the San Diego Aqueduct System there is flexibility to provide the needs of all three agencies. At the time the entire water system design was completed for the La Costa Meadows area and the Carlsbad and San Marcos Districts constructed the Alga Road transmission main, the pressure zones for water service were set to utilize the dominant hill immedia- tely east of the subdivision for the reservoir site. The summit is Elevation 738, so the geographical and topographical setting is convenient and economical for the two Districts. In fact, the Alga Road Pipeline was constructed with a take-off and valve to accomodate a connection to the future reservoir. This study does include alternatives for either reinforced concrete or welded steel reservoir construction and an additional choice of an underground or above ground reservoir in the concrete-type. IV. ALTERNATIVE PLANS FOR TRANSMISSION CAPACITY AND ELEVATED STORAGE REQUIREMENTS: With the basic selection made for the alternatives for pipeline facilities, it is now appropriate to describe in terms of preli- minary engineering data the various construction features and the estimate of construction cost based upon current construction cost factors. PLAN C-SM CMWD SMCWD TOTAL FACILITY CAPACITY COST CAPACITY COST CONSTRUCTION (CFS) (DOLLARS) (CFS) (DOLLARS) COST (DOLLARS) 1. Connection to existing CMWD No. 1 tap. Modification of Meter, Chlorination Equipment, and Structure. 13.33 91,000 5.00 34,000 125,000 ' 2.21" Pipeline from CMWD tn No. 1 tap to intersection , of Melrose Avenue and Alga Road in Rancho Santa Fe Road including all valves and appurtenances. Approx- imately 10,500 lineal feet of pipeline. 13.33 435,000 5.00 165,000 600,000 TOTALS --- 526,000 --- 199,000 725,000 PLAN C-SM-0 FACILITY CMWD CAPACITY COST (CFS) (DOLLARS) SMCWD CAPACITY COST (CFS) (DOLLARS) OMWD TOTAL CAPACITY COST CONSTRUCTION (CFS) (DOLLARS) COST (DOLLARS) 1. Connection to existing 20" turn out on SDCWA Aqueduct on Quest- haven Road, Meter, Chlorination, Equip- ment and Structure. 13.33 2. 36" pipeline in Quest- haven Road from SDCWA Aqueduct to OMWD out- let. Approximately 6,850 lineal feet of pipeline. 13.33 3. 27" pipeline from OMWD outlet in Quest- haven Road to inter- section of Melrose Avenue and Alga Road in Rancho Santa Fe Road and Melrose Avenue including valves, PRV, and appurtenances. Approximately 7,300 lineal feet of pipe- line. 13.33 TOTALS NOTE: 61,000 17.67 81,000 10.00 46,000 188,000 201,000 11.95 180,000 10.00 151,000 532,000 262,000 524,000 11.95 215,000 476,000 -0- -0- 477,000 197,000 1,197,000 Plate No. schemati c 1 shows the of this plan PLAN C FACILITY CMWD AREA WIDE WATER SERVICE CAPACITY COST (CFS) (DOLLARS) RANCHO CARRILLO LOCAL WATER SERVICE CAPACITY COST (CFS) (DOLLARS) TOTAL CONSTRUCTION COST (DOLLARS) 1. Connection to existing CMWD No. 1 Tap, Modification of Meter, Chlorination Equipment, and Structure. 13.33 72,000 10.50 53,000 125,000 24" Pipeline from CMWD No. 1 Tap in Palomar Air- port Road to Mel rose and Melrose to Poinsettia Drive including valve and appurtenances. Approxi- mately 12,000 lineal feet of pipeline. 13.33 346,000 10.50 260,000 606,000 20" Pipeline in Melrose from Poinsettia Drive to Alga Road including valve and appurtenances. Approximately 3,600 lineal feet of pipeline. 13.33 58,000 •0-58,000 TOTALS 476,000 313,000 789,000 NOTE: Estimate does not include right-of-way or grading of future streets. The cost of grading is a major item since cut and fills are up to seventy (70) feet and could easily exceed the cost of the pipeline shown on this table. PLAN C-SM 10.5 MILLION GALLON RESERVOIR I CO I ALTERNATE 1. Concrete Reservoir including grading and 27" pipeline and appurtenances to Alga Road. Approximately 2 ,000 1 i neal feet of pipeline CMWD CAPACITY COST (MILLIONS OF)(DOLLARS) (GALLONS) Underground reservoir 6.9 b. Above ground reservoi r Steel Reservoir including grading and 27" pipeline and appurtenances to Alga Road. Approximately 2,000 lineal feet of pipeline. 6.9 1 ,464,000 1 ,279,000 6.9 953,000 SMCWD CAPACITY COST (MILLIONS OF) (DOLLARS) (GALLONS) TOTAL CONSTRUCTION COST (DOLLARS) 3.6 3.6 789,000 689,000 2,253,000 1 ,968,000 3.6 513,000 1 ,466,000 PLAN C 6.0 MILLION GALLON RESERVOIR ALTERNATE I ALTERNATE II ALTERNATE III Underground Concrete Reservoir including grading and 24" pipe- line and appurtenances to Alga Road. Approximately 2,000 lineal feet of pipeline. Above ground Concrete Reservoir including grading and 24" pipe- line and appurtenances to Alga Road. Approximately 2,000 lineal feet of pipeline. Steel Reservoir including grading and 24" pipeline and appurtenances to Alga Road. Approximately 2,000 lineal feet of pipeline. I UJ $1 ,415,000 $1,299,000 $1,174,000 SAH MARCOS COUNTY WATER DISTRICT CARLSBAD MUNICIPAL WATER DISTRICT OLIVENHAIN MUNICIPAL WATER DISTRICT S.M.C.W.D. PROJECT SUMMARY AGENCY PIPELINE CAPACITY CcF.s;) SHARE OF PROJECTED COST CD0LLARS3 CARLSBAD M.W.D. 13.33 524.000 SAN MARCOS C.V^.D. 17.67 476.000 OLIVENHAIN M.W.D 10.00 197,000 TOTALS 41.00 1,197,000 ^. FOR JOINT RESERVOIR COSTS AND CAPACITIES SEE TABLE TITLED: PLAN C-SM 10.5 M.G. RESERVOIR PLATE NO. I PLAN C-SM-0 1 n WOOD mm WOODSIDE/KUBOTA A ASSOCIATES. INC V. ENVIRONMENTAL IMPACT CONSIDERATIONS: The detail assessment of the environmental impact of the various alternative projects that we have described in this report is in itself a monumental task and the California Environmental Quality Act proceedings will require a complete evaluation. For the pur- poses of this report, however, we must comment that from our present vantage point there is no visible factors that would represent serious obstacles to the project. In the case of the joint projects, we are confined to existing rights-of-way or we are in rights-of-way where specific engineering planning studies have already been per- formed so that there should be a minimum of conflict from that standpoint. In the case of our Plan C, the master planned community of Rancho Carrillo has already been subjected to a detailed environ- mental impact assessment so that the street alignments have been approved. There are the important issues of growth inducement factors, increased urbanization, and other such social and econo- mical considerations. In the case of our San Marcos and Carlsbad joint powers agreement, we already have the development well under way and public service water requirements are alreay upon us at this time. In the case of the Olivenhain District, this matter would be considered in their detailed environmental impact studies. VI. FINANCING PROGRAM: Upon the thorough evaluation of this report and the continuation of cooperative study with our neighboring agencies, it is approp- riate to make a final determination as to the practical route to select. In the event a joint project is agreed upon, the Districts must then move forward with individual financing programs to fund their respective share of the project. It should be borne in mind that as we make a final determination on the scope of the project and its overall time schedule, funding requirements will have to take into account continuing increases in construction costs and the financial conditions of our nation and economy in order to make a prediction of our ultimate financial needs. In case of the Carlsbad District, we are currently considering a funding program for another major capital improvement project, namely the "Tri-Agencies Pipeline", so that our District will have to study our overall capital improvement needs and a long term funding program. Among the sources of income that the District should consider includes overall general obligation bond issues, revenue bond issues, connection fees from new developments, and special area-wide contributions where the major pipelines provide a benefit to the local abutting properties. 11 BHH WOOD cotwm-TtNojMBI BBB HB WOODSIDE/KUBOTA A ASSOCIATES, INC. VII. SUMMARY AND FINDINGS: A. The study identifies three defined choices for our District to pursue to complete the "South Aqueduct Connection" program initiated in 1971. Continuation of our joint program with San Marcos is a practical plan and participation with Oliven- hain would be appropriate considering all of the alternatives. The total estimated cost based on current construction cost in- dexes would be in the order of 1.2 Million Dollars. Carlsbad's share would amount to approximately One-half Million Dollars. B. To accomodate the storage requirements for Carlsbad and San Marcos, one 10.5 M.G. reservoir, estimated to cost 1.5 Million Dollars, would adequately serve the service area. C. All phases of proposed construction will require detailed environmental impact proceedings; however, it appears thatno substantial situations exist, which would jeopardize the projects. D. The District will have to consider a substantial financing program for this important project and coordination with other high priority capital improvement projects is imperative. VIII. RECOMMENDATIONS: A. The Board of Directors and staff should review this report and subject to modifications deemed appropriate adopt same. B. The District staff should be authorized to commence informal discussions with San Marcos and Olivenhain to determine the ex- tent to which joint planning can continue. C. Collectively, a time schedule for the overall project should be developed. D. Concurrently with the on-going activities of the proposed "Tri-Agencies Pipeline Project", the financial aspects of this project should be considered so that funding can be con- sidered on a timely basis. 12 AGREEMI'^NT (JOINT USE PIPEL'.irJ) THIS AGREEMENT, made this l?th day of January , 1972, betv;een CARLSBAD MUNICIPAL WATER DISTRICT, a municipal water district, hereinafter for convenience referred to as "CARLSBAD", and SAN MARCOS COUNTY V7ATER DISTRICT, a county water district, herein- after for convenience referred to as "SAN I-IARCOS". 1. Recitals. This agreement is made in light of the follow- ing facts and circumstances: A. Portions of real property owned by La Costa Land Company, here- inafter for convenience referred to as "LA COSTA", are located within the boundaries of CARLS- BAD and SAN MARCOS. • B. CARLSBAD and SAN MARCOS both provide water service to a por- tion of the real property of LA COSTA being developed as "LA COSTA MEADOWS" subdivisions. C. Under the requirements of CARLS- BAD and SAN MARCOS, LA COSTA is required to construct certain water system facilities for de- livery of v.'ater . to the LA COSTA MEAD0V;s subdivisions, v;hich • have been approved prior to this agreement. D. As part of the water system facilr ities to be constructed by LA COSTA, it is necessary for LA COSTA to construct a transmission main, with appurtenant facilities, in Alga Road for both CARLSBAD and SAN MARCOS, with the v/ater system plans indicating a "18" inch transmission main for CARLSBAD and a "12" inch water main for SAN MARCOS. E. It is agreed that it is in the interest of CARLSBAD, S2^N MARCOS and LA COSTA, that a joint powers agreement between CARLSBAD and SAN MARCOS be prepared for the construction and operation of one major transmission facility that will serve the needs of all trans- mission facilities for LA COSTA MEADOV;s subdivisions, approved prior to this agreement, v/ithin CARLSBAD and SAN MJVRCOS, and provide the necessary trans- mission lines for CARLSBAD and SAN MARCOS to serve v/ater to the said LA COSTA MEADOWS subdivisions. F. The project shall be known as -2- "TRANSMISSION MAIN FOR ALGA ROAD PROJECT", hereinafter for conven- ience referred to as "the pipe- line". G. The route of the pipeline to be . constructed is generally set ' forth on Exhibit "A" attached hereto, and incorporated herein. 2. Ownership of Pipeline. The ownership of the pipeline shall be jointly by CARLSBAD and SAN MARCOS in the following percentage: UNIT A UNIT B CARLSBAD 72.7% 84.2% SAN MARCOS 27.3% ^•5»8% TOTAL 100% 100% 3. Capacity Rights in Pipeline. The capacity rights of the parties in the pipeline, based on cubic feet per second (CFS) shall be as follows: , • UNIT A UNIT B CARLSBAD 13.33CFS 26.66 CFS SAN MARCOS 5.0 CFS 5.0 CFS TOTAL 18.33CFS 31.66 CFS 4. Temporary Line. CARLSBAD shall have the obligation of providing a temporary line and appurtenances thereto from end of the pipeline (Melrose) in an Easterly direction to the existing v/ater service of SAH MARCOS on Rancho Santa Fe Road. SAN >y^RCOS agrees to use diligent effort in se- curing a permanent pipeline in this area to be installed -3- by LA COSTA as now required by the agreement for water service improvements for La Costa Meadows Unit #2 between LA COSTA and SAN MARCOS, to reduce temporary facilities to be installed by CARLSBAD. • 5. Plans- and Specifications for Pipeline. A. CARLSBAD has sponsored the pipe- . line project by authorizing draw- ings, construction plans and spe- cifications, advertising for bids, and opening said bids, for the construction of the pipeline of sufficient size and design to enable the parties to use the full capacity rights of each of the parties in the pipeline. B. The final plans and specifications shall be furnished to SAN MARCOS for its approval and CARLSBAD will not proceed v;ith the con- struction project until such time as SAN MARCOS has approved the final plans and specifica- • tions. C. Upon '•vritten notification of approval of the final plans and specifications by SAN MARCOS, CARLSBAD shall proceed to av;ard 'a contract for immediate con- struction to the lowest respon- sible bidder complying with the -4- contract documents, after such time as LA COSTA has posted the necessary security for funding of said contract. D. No changes in, or amendments to, the approved plans and specifica- .V tions or extra items will be authorized unless approved by both parties in writing. 6. Supervision. CARLSBAD will supervise the construction of the said pipeline to insure compliance by the Contractor with the approved plans and specifications, or approved changes or amendments thereto. 7. Rights of Way. CARLSBAD will take any and all necessary steps to acquire necessary easements and rights of way for the pipeline, with said easements and rights of way to exist in favor of both parties. In the event any eminent do- main proceedings are necessary, CARLSBAD will take any necessary legal proceedings. Both parties agree to adopt any necessary resolutions connected v/ith said legal proceedings. . 8. . Payment of Costs of Construction Project. CARLSBAD will take the responsibility of se- curing necessary funds for payment of all construction costs of the pipeline, including, but not limited to engineering foes and costs, legal expense, the cost of the acquisition of any necessary easements and rights of way and all other expenses from LA COSTA. -5- 9. Books and Records on Construction Project. CARLSBAD shall keep and maintain proper books of account and records in which complete and current entries shall be made of all transactions relating to the construction of the pipeline and other costs con- nected therewith. SAN MARCOS shall have the right, at reasonable times, from time to time, during regular business hours, to inspect all such books and records. 10. Maintenance and Operation of the Pipeline, A. Upon completion of the pipeline, CARLSBAD v/ill maintain and oper- ate the pipeline for the mutual benefit of CARLSBAD and SAN MARCOS. B. All costs of such operation and maintenance, including account- ing, administrative costs and repairs, will be borne by and paid by each of the parties in the proportion that the water transported through said pipeline for each of the parties bears to the total amount of water trans- ported for both parties for the preceding calendar year. Until such time as a preceding calen- dar year is available, the period of time shall be the cumulative preceding months of operation. C. CARLSBAD will bill SAN MARCOS -6- I monthly for its proportionate share of such costs and main- tenance. SAN MARCOS will pay such statements within twenty (20) days after the receipt thereof. D. CARLSBAD shall keep and main- tain proper books of account and records in which complete and current entries shall be made of all transactions, in- cluding all receipts and dis- bursements, relating to the administration, maintenance, operation and repair of said pipeline. SAN MARCOS shall have the right at reasonable times, from time td time, dur- ing regular business hours, to inspect all such books and records to verify any state- ment rendered by CARLSBAD to SAN MARCOS for charges payable by SAN MARCOS. CARLSBAD shall Utilize the "Uniform Accounting Program" of the State Control- ler's Office. E. .prif?.?: to making any repairs, except in case of emergency repairs, which are estimated -7- to cost in excess of $1,000.00, CARLSBAD shall obtain the prior approval of SAN MARCOS for any such expenditure. No emergency repairs are to be made without prior notification to SAN MARCOS. F. Any connections to the pipeline by either party shall be subject to written approval of the other party. G. CARLSBAD agrees to hold SAN MARCOS free and harmless from any damage or injury to any person or property, arising frora the maintenance and operation of the pipeline by• CARLSBAD. . 11. Delivery of Water. CARLSBAD will receive all water into said line and will install the necessary meters and appurtenances that are required to account for the water delivered to each of the parties hereunder. i Any discrepency between the amount of water re- ceived by CARLSBAD into the line and that delivered to each of the parties hereunder will be adjusted and the cost thereof handled as a cost of operation and mainten- ance and borne by each of the parties hereto in the same manner as other costs of operation and maintenance as hereinbefore set forth (paragraph 10[B], page 6). 12. Water Meters and Appurtenances. Each of the parties will bear the full cost of any water meter and appurtenance installed for the -8- sole use of such party. Any costs connected with the in- stallation of any water meter and appurtenances installed for the joint use of the parties will be shared in the ratio of capacity rights of each party in. said meters and/or appurtenances. 13. Notices. m Any notice which either party is required to give or desires to give hereunder may be served upon the other party by personally delivering a copy thereof or by mailing any such notice by regular or certified mail, return receipt requested, postage prepaid, and addressed as follows: CARLSBAD: Carlsbad Municipal Water District 5780 El Camino Real Carlsbad, California 92008 'SAN MARCOS: San Marcos County Water District 788 West Encinitas Road San Marcos, California 92069 Either party may from time to time designate a different address for notices by notifying the other party. Any notice mailed by regular mail shall be deemed received by the party to whom such notice is addressed forty-eight (48) hours after the mailing thereof. Any notice mailed by certified mail, return receipt re- quested, shall be deemed received by the party to whom such notice is addressed on the receipt date of the return receipt. 14. Arbitration. In the event any controversy or claim arising out of this agreement cannot be settled by the parties. -9- all controversies arising out of the interpretation or application of this agreement or the refusal of either party to perform the whole or any part thereof shall be settled by arbitration in accordance with the provisions of this section and where not provided by this section in accordance with the statutory provisions of the State "of California then in force. The controversy shall be submitted to a board of three (3) arbitrators which shall be appointed, one by CARLSBAD, one by SAN MARCOS, and the third by the first two. The party desiring arbi- tration shall notify the other party by a written notice stating the following: (1) that it desires arbitration, (2) the controversy to be arbitrated, (3) that it has appointed its nominee, and (4) that it requests the other party to appoint its nominee. Within thirty (30) days frora the receipt of said notice the other party shall appoint its nominee. Within fifteen (15) days after the last party has appointed its nominee the two nominees shall appoint the third. None of the arbitra- tors shall be a resident of, or taxpayer in, or own property in, or have a place of business in, or be em- ployed in or by, or have any contract with, or be an officer of or an employee of, either party. The arbi- tration board shall hold at least one hearing and at least ten (10) days before said hearing shall give each party written notice thereof. The arbitration shall be restricted to matters relative to that stated in the notice requesting arbitration. The arbitration board shall have no authority to add to or subtract from this agreement. Each party shall be given an -10- opportunity to be heard and to present evidence. Upon conclusion of the hearing or hearings the arbitration board shall reduce their findings of fact, conclusions of law and the award to writing, and shall sign the same and deliver one signed copy thereof to each pub- lic agency. Such award shall be final and binding upon both parties. A majority finding shall govern if the arbitrators' determination is not unanimous. Each party shall pay its own expenses, including the expenses of the arbitrator which it nominates. The expenses of the third arbitrator and the administrative costs of the arbitration proceedings shall be shared equally. Any controversy which can be determined by an engineer's findings and which under this section could be submitted to arbitration may, if the parties thereto agree in writing to do so, be submitted to a named engineer who shall be the sole arbitrator. Such engineer shall be a Registered Civil Engineer of the State of California and shall be disinterested as hereinbefore in this section required of arbitrators on an arbitration board. He shall proceed in the same manner and shall make findings, conclusions and an award in the manner provided herein for an arbitration board. IN WITNESS WHEREOF, each of the parties here- to has caused this instrument to be executed by its officers duly authorized as of the day and year first -11- above written. CARLSBAD MUNICIPAL WATER DISTRICT, a Municipal Water District President ^j Secretary SAN MARCOS COUNTY WATER DISTRICT, a County Water District By_ President r 'ecretary 2 7^ -12- I • ^ ^^^^ •"•^'f I • I • I Exhibit "A"