HomeMy WebLinkAbout2012-05-22; Municipal Water District; Resolution 144114
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EXHIBIT 1
1 RESOLUTION NO. 1441
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD MUNICIPAL WATER DISTRICT AUTHORIZING THE
3 EXECUTIVE DIRECTOR TO PROVIDE TERMINATION NOTICE
TO THE LEUCADIA WASTEWATER DISTRICT FOR THE
4 RECYCLED WATER PURCHASE AGREEMENT ENTITLED
"AGREEMENT FOR SALE OF RECYCLED WATER TO THE
5 CITY OF CARLSBAD BY THE LEUCADIA COUNTY WATER
DISTRICT"
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7 II
WHEREAS, the Carlsbad Municipal Water District (CMWD or District) provides
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potable and recycled water to the customers within its defined service area; and
10 WHEREAS, the use of recycled water is recommended whenever appropriate,
11 consistent with existing health and safety codes, to minimize the demand on limited
12 potable water supplies; and
WHEREAS, CMWD had access to limited supplies of recycled water in the early
years of the development of the recycled water program; and
WHEREAS, on March 25, 1991, CMWD entered into an agreement (Agreement)
with the Leucadia County Water District to purchase recycled water. Leucadia County
Water District subsequently was renamed the Leucadia Wastewater District; and
WHEREAS, the term of the Agreement was for twenty years, expiring on March
20 25, 2011. Section 17 of the Agreement provided for the terms to continue on a year to
21 year basis beyond the expiration date until either party gives one-year written notice of
22 its intention to terminate or renegotiate the agreement; and
23 WHEREAS, the costs of the recycled water purchased under the Agreement has
risen sharply in recent years, primarily due to rapidly increasing imported water rates, to
which the recycled water price is tied, and the reduced consumption of the purchased
water's only customer; and
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1 WHEREAS, CMWD has invested significant sums of money to procure and
2 develop alternative recycled water supplies which are now far less costly than those
supplies obtained under the Agreement; and
WHEREAS, CMWD has sufficient supplies to meet the recycled water demands
without the supplies obtained under the Agreement; and
WHEREAS, the Agreement does not specificaliy authorize staff to provide proper
written notice of termination for the Agreement.
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g NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water
10 District Board of Directors of the City of Carlsbad, California, as follows:
11 1. That the above recitations are true and correct.
2. That the Board of Directors finds that it is in the best interests of the
District to terminate the existing Agreement, entitled "Agreement for Sale of Recycled
Water to the City of Carlsbad by the Leucadia County Water District," with the Leucadia
Wastewater District.
3. That the Board hereby authorizes the District's Executive Director to
13 provide proper written one-year notice of termination to Leucadia Wastewater District
19 consistent with the terms of the Agreement.
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1 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of
2 Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 22"^
day of May, 2012, by the following vote to wit:
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AYES: Board Members Hall, Kulchin, Blackburn, Douglas and Packard.
NOES: None.
ABSENT: None.
MATT HALL, President
ATTEST:
16 LORRAINE M. WOOD, Secretary
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