HomeMy WebLinkAbout2012-03-13; Municipal Water District; Resolution 14391 RESOLUTION NO. 1439
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
CARLSBAD MUNICIPAL WATER DISTRICT (CMWD),
APPROVING A REIMBURSEMENT AGREEMENT
BETWEEN THE CARLSBAD MUNICIPAL WATER
DISTRICT, CITY OF CARLSBAD AND POSEIDON
5 RESOURCES (CHANNELSIDE), LP
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WHEREAS, more than ten years ago city officials took a leadership position in
working with Poseidon Resources to develop a desalination project in Carlsbad; and
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^ WHEREAS, the Carlsbad Municipal Water District, a subsidiary district of the City
10 of Carlsbad, was the first water agency in San Diego County to negotiate a contract with
11 Poseidon Resources to purchase water from the project; and
12 WHEREAS, due to financial considerations and the regional nature of this
1^ important local water supply, Poseidon Resources in now in discussions with the San
Diego County Water Authority (SDCWA) on a possible new water purchase agreement;
and
WHEREAS, since June 2002, CMWD contracted with several third party
consultants with expertise in various disciplines relating to desalinated water. The
Consultants' fees paid for by CMWD in connection with the Carlsbad Water Purchase
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20 Agreement equaled $560,000; and
21 WHEREAS, Poseidon has agreed to reimburse CMWD for such third party
22 consultants' costs within one year after the Project commences commercial operations
23 which shall be the date upon which Poseidon first sells any water to the Water Authority
or other person or entity; and
WHEREAS, by entering into this Agreement, Poseidon and the District agree that
the Carlsbad Water Purchase Agreement shall terminate and no longer have any force
1 and effect upon approval of the SDCWA Water Purchase Agreement by the SDCWA
2 Board of Directors.
^ NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water
District Board ofthe City of Carlsbad, California, as follows that:
1. The above recitations are true and correct.
2. The Carlsbad Municipal Water District Board of Directors approve the
Reimbursement Agreement between the Municipal Water District, the City of
9 Carlsbad and Poseidon Resources (Channelside), LP.
10 3. That the Executive Director is authorized to execute the Reimbursement
11 agreement.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad Municipal Water District Board of Directors and the Carlsbad City Council,
held on the 13*^ day of March, 2012, by the following vote:
AYES: Council Members Hall, Kulchin, Blackburn, Douglas and Packard.
NOES: None.
ABSENT: None.
MATT HALL, President
ATTEST:
(SEAL)
INE M. WOOD, Secretary
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