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HomeMy WebLinkAbout1981-03-10; City Council; 6533; Service Area Boundary Agreement TerminationCITY OF CARLSBAD AGENDA BILL NO. 6 533 DATE : March 10, 1981 DEPARTMENT : City Manager Initial: Dept. Head City Atty. '*!F& City Mgr. P=- SERVICE AREA BOUNDARY AGREEMENT Subject : Notice of Termination Statement of the Matter On March 27, 1972 the City of Carlsbad and the Carlsbad Municipal Water District (CRMWD) entered into an agreement to designate which areas of the City are to be served retail water by each agency. In general, the agreement assigned the developed urban areas of Carlsbad to the City. The undeveloped agricultural areas and the developing La Costa areas were assigned to the Water District. Due to the passage of time and growth of the City, the circumstances have changed and the agreement no longer serves the purpose for which it was intended. There is a need to renegotiate the agreement for the purpose of expanding the territory to be served by the City. In particular the northeast area of the City (Lake Calavera Hills) should be reevaluated to determine if the City might better be the retail water distribution agency. In addition, the issue of distribution of reclaimed water needs to be addressed. The 1972 agreement did not designate responsibility for production and distribution of reclaimed water. Since 1977 the City of Carlsbad has made several studies of the reclaimed water issue. The City has had constructed a waste water reclamation plant in Calavera Hills and is now planning for construction of a second plant near Palomar Airport. Inherent in these studies is the assumption that the City will be the distributor of reclaimed water within the City's sphere of influ- ence. The City Council has on numerous occasions in the past four years made clear its intention to produce and distribute reclaimed water. On December 17, 1980 the Costa Real Municipal Water District adopted a motion, "that Costa Real Municipal Water recognizes its responsibilities under state law regarding the public health considerations of reclaimed water distribution and authorizes the staff to develop rules and regu- lations for control of reclaimed water distribution within the boundaries of the Costa Real Municipal Water District." Agenda Bill No. 6533 March 10, 1981 Page 2 Actions of the Water District since that time have made it clear that the District intends to compete with the City in distributing reclaimed water. The District has failed to coordinate any of its plans with the City. Additionally, they have installed a "reclaimed water line" in the bridge crossing Highway 78 ($80,000+) and installed 4 connections to the San Marcos effluent line ($6,000). It is my opinion that the City and the District are on a collision course relative to reclaimed water. The District's action is destructive to the City's plans for developing a viable and cost effective program to conserve and reuse water. Research we have done into this matter indicates that the District may not have the legal power to distribute reclaimed water. It appears that such power comes under the "latent" powers of the District and may have to be approved by LAFCO before it can be exercised. Since the District is proceeding to exercise this power without approval, it is incumbent upon the City to examine the effect such action may have upon the long range plans of the City. One way to bring this issue into the open is to terminate the existing service area agreement. This would enable the District and the City to renegotiate the agreement and to resolve the reclaimed water issue and other issues concerning service area boundaries. The 1972 agreement provides that either party may terminate the agreement by delivery of a written notice of termination one (1) year prior to the effective termination date. Exhibits Resolution No. 6456 , Notice of Termination Agreement, March 27, 1972 Minutes of Council Meeting, December 19, 1978 with memo Memo from Utilities/Maintenance Director, January 17, 1980 Recommendation It is recommended that the City Council consider the above described issues and the terms of Resolution No. 6456 Council Action: 3-10-81 Council adopted Resolution 6456. 1 1 2 3 4 5 6 7 8 9 10 .11 12 13 14 15 16 17 18 19 20 21 22 23 24 '2 5 26 27 28 RESOLUTION NO. 6456 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD OF THE INTENT TO TEFOIINATE THE RETAIL SERVICE AREA BOUNDARY AGREEMENT WITH THE COSTA REAL MUNICIPAL WATER DIS- TRICT, FORMERLY KNOWN AS THE CARLSBAD MUNICIPAL WATER DISTRICT WHEREAS, the City of Carlsbad and the Carlsbad Municipal Water District, now known as the Costa Real Municipal Water District, entered into .a service area boundary agreement on March 27, 1972; and WHEREAS, the City Council of the City of Carlsbad finds the agreement no longer serves the best interests of Carlsbad; and WHEREAS, said agreement requires a notification of one year prior to termination by either party; NOW, THEREFORE, BE IT RESOLVED by the City Council of.the City of Carlsbad as follows: 1. The above recitations are true and correct. 2. The Service Area Agreement between the City and the Carlsbad Municipal Water District, now known as the Costa Real Municipal Water District, of March 27, 1972 be terminated effective March 11, 1982. Such notification marked Exhibit "A", a copy of which is attached hereto and made a part hereof, is hereby approved. 3. That the Mayor of the City of Carlsbad is hereby authorized and directed to execute said notification for and on behalf of the City of Carlsbad. xx X xx xx x X 3 2 5 4 F c c E 5 1c 11 12 1: 14 LE 16 17 ia 19 20 21 22 23 24 25 26 * 27 20 adjourned PASSED, APPROVED AND ADOPTED at a/regular meeting of the Carlsbad City Council held on the 10th. day of March , 1981, by the following vote, to wit: AYES: Council Members Packard, Casler, Anear, Lewis and Kulchin - NOES: None ABSENT: None ATTEST: RONALD C. PACXARD, Mayor ALETHA L. RAUTENKRANZ, City Clerk (SEAL) -2- .- r 1200 ELM AVENUE .. . ' CARLSBAD, CALIFORNIA 92008 .. . . Office of the Mayor -qxhibit "A" to ksolution #6456 March 11, 1981 TELEPHONE: (714) 438.5561 President Costa Real Municipal Water District 5950 El Camino Real Carlsbad, CA 92008 Dear President MacLeod: The City Council of the City of Carlsbad'has directed" that I forward a notice of the City.!s intention to terminate the Service Area Boundary Agreement of March 27, 1972, effective March 11, 1982. A copy of this resolution is attached for your infor- mation. .. Sincerely, ./ RONALD C. PACKARD Mayor RCP : gb Enclosure .- .. AGREEMENT .. & .. .. . .. .. .. This 'agreement, made this 11th ... 1972, between. CITY' OF. CARLSBAD, hereinafter for convei- ience referred to as "CITY", and , DISTRICT, hereinafter for convenience referred to 'as *. - -1 "DISTRICT". .. ,. .. WIT'NE'SSETH: - - --.- - -- - - .. . WHEREAS, the-Board of Directors of the..DISTRICT :. -.. . adopted Ordinance No. 26 of -the 'DISTRICT on May. -158. 1968; .... .. ....... - .e .- ,e-- and -. <. . .. WHkREAS,, said Ordinance No. 26 provides in part ' .. .- that whole 's'ale connections, shall 'be granted' to- serve a .. .. municipal corporation, whi-ch .is prepared to serve- water .. ,* '. ... .. .. to all potential customers within a: primary. distribution-. - area as established. in the ma.ster water distribution 'sys- : .... ,_. . .. .. .. .. .. .. 2. -. ... ... .. J, .... .... .. *'i tem of the, DISTRICT; and. .. . .- .... .. .. .. .. -. .. - . '. . .: .. .. . ' WHEREAS,. investigation had revealed. that. the' ' '. ... ... .. .. . :.. 7. ... ... ... _. CITY as' suc.cessor to Carlsbad, Mutual. Water' Company. and Terra& Water- Company .had - never: :submitted- a primary . '' .. .. .. . .: : . .. - .. .. *. ., ... .. .. .- .. e.. >. . .- .' ,- .. .. .. .. .. : .' .. time ,and place for a public hearing for any interested .. .-. -' . . i i persons to present any evidence for the consideration of the DISTRICT in establishing a primary distribution area for the CITY for its whole sale service of water from the DISTRICT; and WHEREAS, due notice of said hearing was given by publication of notice of hearing and by mailing of said notice to the CITY; and WHEREAS, at the time and place fixed for the said hearing, testimony and evidence were presented for consideration of the Board of Directors of the DISTRICT; and WHEREAS, the Board of Directors of the DISTRICT carefully reviewed and studied all of the testimony and evidence; and WHEREAS, thereafter the DISTRICT adopted Reso- lution No. 256, entitled, "A RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL WATER DISTRICT ESTABLISH- ING A PRIMARY DISTRIBUTION AREA FOR THE CITY OF CARLS- BAD IN ACCORDANCE WITH ORDINANCE NO. 26, CARLSBAD MUNICI- PAL WATER DISTRICT"; and WHEREAS, said Resolution No. 256 in part * .. fixed, determined and set the primary distribution area fox the CITY for its service of water from the DISTRICT and determined that the CITY shall be entitled to re- . tail water sales within the said primary distribution area; and .- 1 3 .. WHEREAS, the primary 'distribution area for the CITY for its service of water from the DISTRICT is . set forth on the map'attached hereto as Exhibit "A" .. -. .- .. .. .. .. -2- .. .. .I I .i .' . . . .. I , .. and incorporated herein by reference; and 4 ... ... WHEREAS, .the DISTRICT has existing a pipeline ... .. ... ._ and primary distr.ibution system established in other. .. areas of the DISTRICT.. .. other. than .the designated primary distribution area for the CITY; and . . .,. ', ,, .. .. WHEREAS, the DISTRICT does provide retail water service to all other areas of the DISTRICT other ... . ,. . than the said designated primary distribukion area.for . * . the CITY; and . : . .. .. ..-. , r _.. .. .' WHEREAS, .the'. parties to this agreement desire . . .. . to settle any possible conflicts on retail water- ser-"' - - vice to areas located within the DISTRICT, . NOW, THEREFORE, IT IS AGREED AS FOLLOWS: . 1. The CITY shall serve retail water service - to the primary distribution area of the CITY a's desig- ' I ' nated on Exhibit "A" attached hereto and incorporated ... '. . -. 3. .. . .- herein by: , reference .. .. ,. 2. The DISTRICT shall serve retail water ser- .. .. .. .I .. vice to all of the areas within the DISTRICT other than the primary distribution area of the CITY as designated on Exhibit "A" attached hereto and incorporated herein . -. .. - . ;.. .. .. -. . .. 'by reference , 3. ... time by, either party, by the .del,ivery of a written no-. tice of terkination one .(l):. year' prior to the '.effective.; termination date. However,. the termination .of this.- ' .-. . - . ' ..... agreement shall not cons.titute a waiver..of .any of the This agreement may- be terminated at any: '. : , .. .. .. .. .. .... .. _. ,. .. .. -- .... ... .. ... .. .- .. ._ .. .. . . , .. .. rights and' 1iabilit.ies that either of, the .partie,s may ' . .... ........ ... .. .. - -. . , . . .. ..... have under'existing. applicable statutes, resolutions', 'j. .: ....... ordinances. or. .court decisions .... ... ... .. .. .. ... -. _. _. .... .... ...... .-.< ... .. ...... . ,. .-. ' f ._. . -. .) ,' .. .- .. .... - . _. : . ..... L . .I .- ., e. .. .. .. .- - .. . .I ,. .... ... . , *- . -. *. .......... ... . - .. . _,. . .. .... .... -. ..a . .... .. ... ,: ' ._ - ....... -_ . - ..' ..I , :. ' , .. .. .. .. ....... . .I. .. . ........... .. ..... -. , .... . :--(.' *.. ._ ,. - .I) - . -. .. : ... ..... .. .. ' __ ...... ... ...... ..... .. ... - .. -. ,. -. 5. .::- -. .*- ', , ...;-b. I* i ,. :. v.s.,>- ':'. -. .. ... - 5 -"- -..+ ' I. *. .- . ... ....... . .... ..... ,. . .. ./ ... .......... .-- .. -.. -. .. * . ._- . :' a: ... .'. .. ....... - '. . .. ..... ......... ......... .. ... ....... ... .- . . t.& . . ._.. >.A-.*. . - . ' .... ...... -. .... .. .- . ,. -. .-3- :;;;...: ..... .. _- . .. -. . ..... .... %.- .. ... .- -- .. . .* . . ..... ....... .............. ... ,_.: ... .. .-* ._ ; .% h - . , ,I .... .. I . .. -, t . ? '.. .- .. .. ....... '. ,- . ~ . .- ... ,. .I .. , . ... .... .. .. I .. .:. -. - .: . . t .. .I.- 1. .. ......... : .. .... . .. .. - ... .. .. . -_. .. ....... ,- ... .. ' - .- .. -. .... . e.. ..... .. ... ....... .. .. .. .< . , . *. .. ... ...... .' . . .-. ... ..! . - a. .:_ ...-.. .... .. .:' ,-.,. .. ... .- . ,. -. . I. . -.. ... .. .i I , .. .... .... '.--------.. . -..I__ -.-. - . ' .. .. .. . . -'. . ~ ,._ .. .. : .. .. ... ._ . . .. ... ... .. .. .- f., .. .. .. .- . ._ : -- 4. * Each'party to this agreement shall take 4 any other necessary action to carry out the terms of -this agreement . \ .IN WITNESS WHEREOF, each of the parties here- ? to has caused this agreement to be executed by its re- spective officers theretofore duly authorized. CITY OF CARLSBAD CARLSBAD MUNICIPAL WATER . DISTRICT ,. Date of Execution:. ., Date of Execution:. .. ' .. c .. .. .. I. ... ':. ... :_ ' . ... COUNCILMEN * CITY c' OF CARLSBADg" .. .. December 19, 19.78 ' n . - ADDITIONAL CITY COUNCIL BUSINESS: ,/ ,Informational Item'A - Memorandum to City. * Manager from Director of Utilities/Maintenance regarding CMWD application. to LAFCO regarding permit to sell non-potable water. . Council discussion reflected their concern' that such application would result in major di fficul ties. . Council directed staff to advise LAFCO of their strong 'opposition to any. application by CMWD for permission to sell non-potable . water. - Report of CPO Meeting: -Vice-Mayor Skotnicki - reported to Council regarding the December 18, 1978 meeting of the Comprehensive Planning Organization and conveyed their position on the CallahanTask Force; the cities' report on the Comprehensive General Plan and how well the various elements of CPO had been implemented and the airport element of the Regional Transporta- tion Plan. ADDITIONAL CITY MANAGER BUSINESS: * Mr. Bussey advised the Council that Assemblyman Bob Frazee, newly e'lec-ted, had been assigned Vice-chairman of the Local Government Committee. EXECUTIVE SESSION: Mayor Packard called an Executive Session at 10:15 P.M. for the purpose of discussing litigation. Council reconvened a't 19:58 - and the Mayor announced that liti'gation had been discussed. ADJOURNMENT: .. By proper motion, the meeting was adjourned at 11:59 P.M. to Thursday, December 28, 1978 at 4:45 P.M. in the Counci'l Chambers. Respectfully submitted, ALETHA L. RAUTENKRANZ, City Cark Anita Dack Murphy, ' Recording Secretary . ... I. .. . .. . L 6 Motion Ayes ,. December 7, 1978 MEMORANDUM TO: City Manager FROM: Director of Utilities & Maintenance SUBJECT : CMWD Application to LAFCO; i.e. Exercise of Latent Powers for Distribution of Non-Potable Water The CMWD Board took action in the form of a resolution to LAFCO on December 6, 1978 to exercise their latent power for the distribution of non-potable water. authorization to exercise a latent power if they had not exercised that power prior to 1971 . The general category under which this application was made is "Water Reclamation". Law requires that a Special District must receive - Skip Schmidt briefed the Board on the process required for this application. It appears that LAFCO itself can approve this exercise of power after appropriate public hearings. other government body (i.e. City Council) is - not required. I am of the opinion that this is a maneuver by the CMWD to become directly involved in the distribution of treated effluent from proposed satellite treatment plants. It should be pointed out that this will tend to put them in direct competition with the City and the two other sewerage agencies wittlin our boundaries, i.e. Leucadia County Water District and the San Marcos County Water District. The present "service area" agreement we have with CMWD relates to "water purchased from the CMWD" - it appears we have no agreement as it relates to non-potable water or any other water. The present agreement with CMWD can be terminated in a year by notification of either party. I have discussed the processing of such an application with LAFCO, It appears that LAFCO will solicit comments from affected agencies and the issues of service duplication/competition will be a major issue in their considerations, A public hearing will also be required as a part of this process. Council may wish to consider taking a position on this and other issues relating to the exercise of latent powers for water reclamation by the CMWD. Approval of the Board of Supervisors or any Di ctor of Utilities & Maintenance RWG: pag cc: Public Works Administrator - . 80- 14 EX H 1 B I T "A" January 17, 1980 MEMORANDUM TO: City Manager FROM: Di rector of Uti 1 i ties & Maintenance 1 SUBJECT: Notice of Termination, Retail Water Service Areas of the City and CMWD The City and the CMWD entered into an agreement in March of 1972 delineating the areas that each entity would provide retail water . service. This agreement has served both entities well and has pre- cluded the need for determining responsibilities for water service on a case-by-case basis for each development. However, it appear.s that this agreement is no longer in the City's best. interest and it should be terminated in order that new agreements and understandings can be reached. The agreement provides that a notice of termination should be given one year prior to the effective termination date. A copy of the agreement of 1972 is attached. The 1972 agreement, in establishing the need for the agreement, uses the term "for its service of water from the District". This implies, at least, that the service area boundaries do not apply to the provi- sion of retail services of water that the City might obtain from any other source. The City has the potential for receiving and marketing water from other sources; i.e., well fields (remote at this time) and as a product of water reclamation plants. It would appear that should the City care to market water from these sources in the present CMWD service area, such activities would not be in conflict with this agree- ment. CMbfD, on the other hand, may well believe that marketing of non- potable water is within their jurisdiction and thus attempt to obstruct such activities of the City. I am of the opinion that CMWD does have such considerations as outlined above for the following reasons: I 1 1. 2. 3. CMWD initiated discussions about a year ago with LAFCO concerning the exercise of latent powers to market reclaimed water. included a resolution of their Board in this regard. determined not to pursue the issue with LAFCO due to the passage Of SB1953 CUSANOVICH which amended Section 71611 of the Water Code, which expands the definition of "water" to include both potable and non-potabl e. CMWD is attempting to take a more active role in reclamation activities by membership in the San Diego Regional Reclamation Agency. This CMWD The "Water Conservation and Reuse" committee of the CMWD is devoting more of its concerns to reclamation as compared to conservation and has convened a workshop and invited agencies concerned with recl amation to participate. - City Manager -2- January 17, 1980 4. Yr. Jack Y. Kubota responded to the Draft Environmental Impact Report for the City of Carlsbad Waste Water Reclamation Master Plan for the CMWD in a manner that indicates that CYWD intends to distribute non- potable water to their present potahle customers when such waters become available. This is illustrated by use of several similar statements, as follows: "The Costa Real Municipal Water District has had underway for several years now a new program for the distribution and sale of non-potable water where our existing water service customers, as well as our potential new customers, could have full utilization of a non-potable water supply in addition to our regular potable water which we distribute to our 20,000 acre service area". It should be noted that most of this service area falls within the . areas for reclamation identified in the Master Plan. Additionally, the current service area boundaries should, in my opinion, be renegotiated since some new development in the northern half of the City can as easily, if not more easily, be served by the existing City system. line extensions, whereas they could have been served as adequately by the existing City system. Areas such as Chestnut Hi 11 s have required considerabl e CMWD Accordingly, I recommend that the Council approve a resolution authoriz- ing the Mayor to notify the CMWD of the City's intention to terminate the current service area agreement as of March 1, 1981 in order that a new agreement can be negotiated. Dirgtor of Utilities & Maintenance RWG: pab attach. . 1. -I__ NOES NONE ?