The URL can be used to link to this page

Home My WebLink About1987-06-09; City Council; Resolution 91141 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9114 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING A SEVENTH SUPPLEMENT TO THE WATER SERVICE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND COSTA REAL MUNICIPAL WATER DISTRICT PROVIDING FOR FUNDING OF WATER PROJECTS WHEREAS, the City of Carlsbad and Costa Real Municipal Water District have reached an agreement regarding Supplement No. 7 to the Water Service Agreement which provides for the construction and funding of replacement water facilities and transmission lines. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad 9s follows: 1. The Seventh Supplement to the Water Service Agreement between the Xty of Carlsbad and Costa Real Municipal Water District for the construction Df water facilities and transmission lines marked Exhibit A, attached hereto md made a part thereof is hereby approved. 2. That the Mayor of the City of Carlsbad is hereby authorized and directed to execute said agreement for and on behalf of the City of Carlsbad. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council held on the gth day of June , 1987, by the following vote, to wit: AYES: NOES: None Council Members Lewis, Kulchin, Mamaux, Pettine, Larson ABSENT: None CLAUDE A. LEWIS, Mayor ATTEST : SUPPLEMENT NO. SEVEN TO THE WATER SERVICE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE COSTA REAL MUNICIPAL WATER DISTRICT AUTHORIZING COSTA REAL TO DESIGN AND CONSTRUCT SPECIFIC WATER TRANSMISSION FACILITIES AND FOR CARLSBAD TO PARTIALLY FUND THESE PROJECTS This agreement made and entered into by and between CITY OF CARLSBAD ("CITY") and COSTA REAL MUNICIPAL WATER DISTRICT ("DISTRICT"). RECITALS: 1. CITY and DISTRICT have previously entered into a Water Service Agreement, executed on May 25, 1983, providing for the allocation of functional responsibilities for the provision of water service within the DISTRICT, said Agreement for convenience hereinafter referred to as "AGREEMENT". 2. Section 9 of the AGREEMENT provides, in part, that ''the DISTRICT will be responsible for the planning, financ'ing and construction of all major capital facilities necessary to provide potable water service within the DISTRICT." 3. DISTRICT, with the cooperation of CITY, has developed a Capital Improvement Plan of public water system facilities. 4. The DISTRICT has developed a Capital Improvement Project list which benefits the previous City Service Area of the DISTRICT. This area was served by the CITY, and the CITY was responsible for the construction, maintenance, repair, and replacement of water transmission facilities. This Project List is detailed in Exhibit A attached hereto and incorporated herein by reference. 5. In compliance with Section 9 of the Basic Agreement, DISTRICT has established a Capital Development Fund which contains $12,874,950 under the adopted 1986-87 budget of the DISTRICT. 6. Section 9 of the Basic Agreement also provides, in part "the CITY will contribute the proceeds from the sale or lease of Lake Calavera together with the undesignated reserves in the City's Water Utility Fund to the Capital Development Fund." NOW, THEREFORE, in consideration of these recitals and mutual covenants contained herein, CITY and DISTRICT agree as follows: 1. CITY will deliver to DISTRICT all of the files, plans, and specifications on any of the capital improvement projects in the possession of CITY within 30 days of execution of this Supplement. 2. DISTRICT is responsible for the design, construction, financing, and all other necessary steps for completion of the capital improvement projects contained in Exhibit A. 3. CITY shall establish a Water Capital Projects Fund, upon the effective date of this agreement, which will include funds in the category of Retaining Earnings of the June 30, 1986 Compre- hensive Annual Finance Report (page 99) as follows: -2- Reserved for Construction $ 445,851 Approved Capital Projects 65,609 Undesignated 3 , 288,293 $3,799,753 The Sixth Supplement Approved Expenditures of $230,664 for the construction of the Ellery Reservoir/Tri-Agency Pipeline and will reduce the fund to $3,569,089. Additionally, interest earn- ings for the above amount, based on the CITY'S average return on investments from July 1, 1986 to the date of final approval of this supplement, will be included. Interest earnings on the Water Capital Projects Fund will be allocated to the Fund when established. CITY retains $911,291, identified as "Retained for Debt Service" to satisfy the Water Works Revenue Bond issues of 1958, 1960, and 1970 and to fund any future capital requirements of the CITY's Water Department. This allocation complies with Paragraph 9 of the Basic Agreement relating to the amount of the CITY's contribution to the DISTRICT Capital Development Fund from the "undesignated reserves in the CITY's Water Utility Fund" and is acceptable to DISTRICT. The parties agree that it is unnecessary for CITY to deliver such undesginated reserves to the DISTRICT'S Capital Development Fund, provided that payments are made in accordance with the terms and conditions of this Supplement. Payments from the CITY to the DISTRICT will be in accordance with the following procedures: a. Project is to be included in the project list (Exhibit A). The project list is not in priority, and costs shown are approximate only. The total cost of the project list is in excess of the funds available from the Water -3- 'I Capital Projects Fund, and additional funds from DISTRICT resources will be required to complete the project list. b. For any fiscal year in which DISTRICT is to receive reimbursement from the Water Capital Projects Fund, DISTRICT will submit to the CITY no later than June 1 commencing that fiscal year, a capital projects budget of the projects or portion of projects from the project list (Exhibit A) to be funded hereunder. This submission shall include a specific project description, estimated funding for the project (showing allocation of benefit to the original CITY service area (in percentage) in accordance with Exhibit A), source of project funds (CITY and DISTRICT), and the fiscal quarter that CITY funds will be required. c. No later than July 15, or 40 days after submission of the capital projects budget to the CITY, whichever is earlier, the CITY Planning Commission shall report publicly the consistency of such budget with the CITY General Plan. In the event the Planning Commission fails to make such a report, such budget shall be deemed consistent with the General Plan. The CITY Council will thereafter review the capital projects budget and authorize the funds to be trans- ferred from the Capital Projects Fund, as provided below, except as to any project in the budget which is: (1) not shown on Exhibit A, or showing an allocation of benefit which conflicts with Exhibit A; or (2) found to be inconsis- tent with the General Plan. -4- d. DISTRICT shall remain responsible to complete plans and studies, including environmental review and engineering, and approve plans and specifications. DISTRICT shall be the lead agency for environmental review of all capital projects under this supplement. e. DISTRICT bills CITY for appropriate pro rata project costs, including engineering and the contract price of the project. CITY will make progress payments to DISTRICT as required. f. DISTRICT submits a final billing at the end of the project and the project is removed from the project list. g. Based on these actions, the Finance Director is authorized to make payments to DISTRICT for projects meeting the criteria set forth in 3a through 3d above. The CITY'S obligation for the planning, construction, and completing the water capital projects is limited to funding the projects in accordance with the procedure outlined above. DISTRICT will hold CITY harmless from any liability resulting from the construction or operation of the approved projects. 4. CITY shall have the right to review the financial records in connection with the individual water project at any time. DISTRICT may review and will be kept advised of the Capital Project Fund status at all times. 5. This Agreement may be amended at any time by the mutual agreement of the parties, and such amendment shall become effective only when reduced to writing and signed by the parties. -5- day of This Agreement is executed on the 9 1987. ATTEST: ALETHA &dQ-J L. RAUTENKRANZ City Clerk / COSTA REAL MUNICIPAL WATER DISTRICT By: SUSAN M. HAASL, President ATTEST: JOHN P. HENLEY Secretary APPROVED AS TO FORM: Legal Counsel -6- Exhibit A- Costa Real Xunicipal Water District .Citym Benefit fran Enhancement Portion of Projects Listed in the Capital Improvement Plan District- Wide city Project Benefit Benefit Telemetry/Control ri,ooo 36,000 Squires Reservoir $660,000 $3,740,000 Evans Point Res. P 500,000 Village Rehabilitaion (1) 1,350,000 Village Rehabilitation(2) 2,000,000 San Luis Rey Well Field 1,500,000 Replc/Enfrg PAR Line 293,800 158,200 Pt. "D" Cogeneration 600,000 Squires Cogeneration 600,000 Telemetry/Control 363,000 Replc/Enlrg ECR Line 211,650 1,199,350 Replc/Enlrg PAR Line 1,012,700 545,300 Rep/Eng Squires Line 93,150 527,850 Village Rehabilitation(3) 500,000 Telemetry/Control 220,000 Total Enhancement cost $4,400,000 500,000 77,000 1,350,000 2,000,000 1,500,000 452,000 600,000 600,000 363,000 1,411,000 ' 1, S58,OOO 621,000 500,000 220,000 Sub-Total $4,095,300 $12,056,700 $16,152,000 Current or Completed Projects $ 355,000 $355,000 Total Cost