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HomeMy WebLinkAbout1983-10-11; City Council; 7521; Water Service Agreement1 . I. . CIT\-JF CARLSBAD - AGEND/ --‘IILL 4B# 75-2 / TITLE: MTG 10-11-83 SUPPLEMENT NO. 1 TO WATER SERVICE . AGREEMENT BETWEEN CITY AND CRMWD PROVIDING DEPT.... FOR THE COLLECTION BY THE CITY OF THE I DISTRICT S MAJOR FACIJ,ITY FEE RECOMMENDED ACTION: If the City Council concurs your action is to adopt Resoultion No. 7369 ITEM EXPLANATION: On May 25, 1983, the city and the district entered into an agreement which assigned the responsibility of maintaining and constructing major water distribution systems within the city to the district. The district was also charged with the responsibility of financing these projects from funds deposited into the "Capital Development Fund". In an effort to guarantee a financing source for these facilities, the district adopted the major facility fee which is similar in concept to our sewer connection fee based on the number of EDU's for each project connecting to the system. This fee has been set at $300 per EDU by board action July 20, 1983. Any project connecting to the Carlsbad water systems (city or district) will be required to pay/this fee. The agreement before the council allows the city to collect this fee for the water district at the time building permits are taken out. Similar agreements were entered into for school fee collections in the recent past. This agreement requires that the city pay all fees collected to the district monthly by the 15th of each month. The agreement also allows the council and board to modify the agreement at any time. FISCAL IMPACT: The city will experience some minor administrative costs in the collection of this fee. These costs should be offset, however, by interest earned on fees collected during the month. Similar arrangements have been made with the school district where interest earnings are expected to offset administrative costs. EXHIBITS: 1. Resolution No. 73~9 , and agreement for collection of Major Facilities Fees. 2. CRMWD Resolution No. 439 * . 19 I 20 21 22 23 24 25 26 27 I 28 RESOLUTION NO. 7369 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING A FIRST SUPPLEMENT TO THE WATER SERVICE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND COSTA REAL MUNICIPAL WATER DISTRICT FOR THE COLLECTION BY THE CITY OF THE DISTRICT'S MAJOR FACILITIES FEES. WHEREAS, the City of Carlsbad and Costa Real Municipal Water District have reached agreement regarding supplement number 1 to the water service agreement which provides for the collection by the City of the District's major facilities fee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad as follows: 1 . That the first supplement to the basic agreement between the City of Carlsbad and Costa Real Municipal Water District for the collection by the City of the District's major facilities fee marked Exhibit A attached hereto and made a part hereof, 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. adjourned PASSED, APPROVED AND ADOPTED at a/regular meeting of the City Council of the City of Carlsbad,California, held on the 11th day of October 9 1983 by the following vote, to wit: AYES: Council Mesnbers Casler, Lewis, Kulchin, Chick and Prescott NOES: None ABSENT: None .I 4 'L.&+ i &ii..+&&+ J ATTEST: MARY H.JCASLER, Mayor ALETHA L. RAU?ENKRANZ, City Cl)rk , c . . . 8 SUPPLEMENT NO. 1 TO WATER SERVICE AGREEMENT BETWEEN THE CITY OF CARLSBAD AND COSTA REAL MUNICIPAL WATER DISTRICT TO PROVIDE FOR THE COLLECTION BY THE CITY ON BEHALF OF THE DISTRICT OF THE DISTRICT'S MAJOR FACILITIES CHARGE AND DIRECT CONNECTION SURCHARGE This agreement made and entered into by and between CITY OF CARLSRAD ("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 alloca- tion of functional responsibilities for the provision of water serv- ice 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, financing and construc- tion of all major capital facilities necessary to provide potable water service within the DISTRICT." 3. Section 9 of the AGREEMENT also provides, in part, that -l- "A capital development fund shall be established, to be administered by the DISTRICT with input from the CITY and to be used for such cap- ital facilities." 4. To carry out the provisions of the AGREEMENT, the DISTRICT established a capital development fund by Resolution No. 439, duly adopted by the Board of Directors of the DISTRICT at a regular meeting of the Board of Directors of the DISTRICT held on July 20, 1983. 5. Section 9 of the AGREEMENT also provides, in part, that connection fees or major facilities charges collected by the CITY on behalf of the DISTRICT shall also be deposited in the capital develop- ment fund. 6. By Resolution No. 439, duly adopted by the Board of Direc- tors of the DISTRICT at a regular meeting of the Board of Directors of the DISTRICT held on July 20, 1983, the DISTRICT established a Major Facilities Charge and a Direct Connection Surcharge to be applied to any new water service or altered water service requirement within the boundaries of the DISTRICT, under terms and conditions set forth in said Resolution No. 439. 7. DISTRICT determined that the most feasible time for col- - 2- -’ . . - jl letting any Major Facilities Charges or Direct Connection Surcharges would be at the time of issuing a building permit, which is issued by the CITY. 8. As a result of the determination, DISTRICT has requested CITY to collect any Major Facilities Charges or Direct Connection Sur- charges for the DISTRICT at the time that the CITY issues a building permit for a project requiring new water service or altered water ser- vice requirement within the boundaries of the DISTRICT. 9. CITY is willing to collect any Major Facilities Charges or Direct Connection Surcharges for the DISTRICT under certain terms and conditions. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, CITY and DISTRICT agree as follows: 1. CITY will use its best efforts to collect on behalf of the DISTRICT the Major Facilities Charge or Direct Connection Surcharge as established by the DISTRICT in accordance with Resolution No. 439 of DISTRICT. However, the CITY shall incur no liability to DISTRICT for CITY's failure to collect any Major Facilities Charge or Direct Con- - 3- nection Surcharge on behalf of the DISTRICT in accordance with the terms and conditions of Resolution No. 439 of the DISTRICT. The charges will be collected by the CITY at the time of issu- ance of a building permit. 2. All charges collected by the CITY pursuant to this Agree-- ment will be held by the CITY in a separate trust account on behalf of the DISTRICT. 3. CITY shall disburse to the DISTRICT, not later than the fifteenth (15th) day of each calendar month, for deposit into the cap- ital development fund of DISTRICT, all charges collected by the CITY on behalf of the DISTRICT for the preceding month. 4. CITY shall have the right to review the records of the capital development fund of the DISTRICT at any time. 5. DISTRICT shall have the right to review the separate trust account of the CITY on behalf of the DISTRICT at any time. 6. 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. -4- . *. . This agreement is executed on the day of I 1983. CITY OF CARLSBAD BY d& . - ,fiARY H. CASLER / Mayor ATTEST: City Clerk APPROVED AS TO FORM: VINCENT F. BIONDO, JR. City Attorney -5- , . /’ COSTA REAL MUNICIPAL WATER DISTRICT By fdk'&-p-. N. M. ALMACK President ATTEST: Secretiljy APPROVED AS TO FORM: PAUL S. SWIRSKY General Legal Counsel -6- RESOLUTlON NO. 4.39 A RESOLUTION OF THE HOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT ESTABLISHING A MAJOR FACILITIES CHARGE ' AND A DIRECT CONNECTION SURCHARGE WHEREAS, the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT determined that it would be to the best interests of the inhabitants of COSTA-REAL MUNICIPAL WATER DISTRICT and the citi- zens of the.City of Carlsbad, located within COSTA REAL MUNICIPAL WATER DISTRICT, to secure an independent study of a major facilities financing plan and a water rate study for COSTA REAL MUNICIPAL WATER DISTRICT: and WHEREAS, the City Council of the City of Carlsbad also re- quested said study; and WHEREAS, after investigation and study, the Board of Direc- tors of COSTA REAL MUNICIPAL WATER DISTRICT employed BARTLE WELLS AS- SOCIATES, Municipal Financing Consultants, in October, 1982, to con- duct such a study and to submit recommendations to the Board of Direc- tors of COSTA REAL MUNICIPAL WATER DISTRICT: and WfIEREAS, BARTLE WELLS ASSOCIATES, after a thorough study and investigation, submitted their preliminary major water faciliti.es fi- nancing plan and rate study entitled: COSTA REAL MUNICIPAL WATER DISTRICT Major Water Facilities Financing Plan and Rate Study April, 1983 hereinafter referred to as "Preliminary Study": and . WHEREAS, after review of the Preliminary Study by the Board -l- of Directors'of COSTA REAL MUNICIPAL WATER DISTRICT, it was determined by the Board of Directors of COSTA REAL MUNICIPAL WATER' DISTRICT that the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT should consider adopting some of the recommendations of BARTLE WELLS ASSOCI- -ATES in reference to the establishment of a Major Facilities Charge and a Direct Connection Surcharge: and WHEREAS, the establishment of a Major Facilities Charge and a Direct Connection Surcharge constituted the levying of a new ser- vice charge; and WHEREAS, on May 4, 1983, it was publicly announced at the regular meeting of the Board of Directors of COSTA REAL MUNLCLPAL WATER DISTRICT that the Preliminary Study of BARTLE WELLS ASSOCIA'I'ES had been delivered to COSTA REAL MUNICIPAL WATER DISTRICT and that the Board of Directors of COSTA REAL MIJNICIPAL WATER DISTRICT would con- sider action on some of the recommendations of RARTLE WELLS ASSOCIATES in reference to the establishment of a Major Facilities Charge and a 'Direct Connection Surcharge after a public hearing to consider the comments of any persons wishing to comment on the matter: and WHEREAS, on May 4, 1983, the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT adopted a schedule calling for a public hear- ing on the recommendations of RARTLE WELLS ASSOCIATES in its Prelimi- nary Study in reference to the establishment of a Major Facilities Charge and Direct Connection' Surcharge at 2:00 o'clock P. M., Wednes- day, June 1, 1983; and WHEREAS, thereafter, the Secretary of the Board of Directors of COSTA REAL MIJNICIPAL WATER DISTRICT did cause a legal publication of a notice of public hearing to be published in the Carlsbad Journal, . -2- 1 . ,, - ,. b+ a legal newspaper of general circulation within the boundaries of COSTA REAL .MUNICIPAL WATER DISTRICT, on May 11, 1983; and WHEREAS, thereafter, the Secretary of the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT did cause a notice of. public _ hearing to be mailed to all known interested parties, ,a copy of the list of the addressees set forth in the-official records of the public hearing; and WHEREAS, the Preliminary Study was available for public re- view at the office of COSTA REAL MUNICIPAL WATER DISTRICT from May 11, 1983 and thereafter; and WHEREAS, on June 1, 1983, at 2:00 o'clock P. M., at a regular meeting of the Board of Directors of COSTA REAL MUNICIPAL WATER .DIS- TRICT, held at the office of COSTA REAL MUNICIPAL WATER DISTRICT at 5950 El Camino Real, Carlsbad, California, the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT conducted a public hearing in ref- erence to the establishment of a Major Facilities Charge and a Direct Connection Surcharge; and WHEREAS, at the request of some parties interested in com- menting on the matter, the said public hearing was continued until June 15, 1983, at 2:00 o'clock P. M., at the office of COSTA REAL MU- NICIPAL WATER DISTRICT: and . WHEREAS, on June 15', 1983, at 2:00 o'clock P. M., at a regu- lar meeting of the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT, held at the office of COSTA REAL MUNICIPAL WATER DISTRICT at 59.50 El Camino Real, Carlsbad, California, the said public hearing was continued, and all parties wishing to comment were afforded the bpportunity to comment; and - 3- WHEREAS, all written communications received by COSTA REAL MUNICIPAL WATER DISTRICT in reference to the establishment of a Major Facilities Charge and a Direct Connection Surcharge were submitted and set forth in the official records of the public hearing: and WHEREAS, after completion of the testimony of comments of all parties who desired to comment, the public hearing was declared closed . and all evidence presented was taken under submission by the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT; and WfjEREAS, BARTLE WELLS ASSOCIATES have now submitted their final major water facilities plan and rate study entitled: FINAL REPORT COS'I'A REAL MUNICIPAL WATER DISTRICT Major Water Facilities Plan and Rate Study June, 1983 hereinafter referred to as "Final Report"; and WHEREAS, the recommendations of BARTLE WELLS ASSOCIATES in the Final Report in reference to the Major Facilities Charge and c1 Direct Connection Surcharge are the same as in the Preliminary Study: and WHEREAS, the'Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT has received written comments on the matter after the closing of the public hearing and said written comments have been made a part of the official records of the hearing on the matter; and WHEREAS, after due deliberation and consideration of all of the evidence presented to it, the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT deems it proper, necessary and to the best interests of COSTA REAL MUNICIPAL WATER DISTRICT and the inhabitants thereof to establish a Major Facilities Charge and a Direct Connection . -4- Surcharge, NOW, THEREFORE, THE HOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT DOES HERERY RESOLVE AND ORDER AS FOLLOWS: 1. The public interest, health and general welfare of the COSTA REAL MUNICIPAL WATER DISTRICT and its inhabitants require the acquisition and construction of water facilities and systems neces- sary to service new and altered structures within the boundaries of COSTA REAL MUNICIPAL WATER DISTRICT, and the public interest and econ- omy require that, in order to provide funds for such purposes, there be established certain connection charges to be paid by the owner or owners of land upon which such structures are constructed or altered, such connection charges to he known as "Major Facilities Charge" and "Direct Connection Surcharge". 2. A Major Facilities Charge is hereby established under the following terms and conditions: a. In addition to all other charges established by ordinances, resolutions and rules and regulations of COSTA REAL MUNICIPAL WATER DISTRICT, there is hereby established a connection charge, to be known as "Major Facilities Charge", to be applied to any new water service or altered water service requirement within the boundaries of COSTA REAL MUNICIPAL WATER DISTRICT. b. The Major Facilities Charge shall be an amount per equivalent dwelling unit (EDU) as hereinafter iden- tified. The amount of the Major Facilities Charge per EDU shall be as follows: -5- $ 300 per EDU August 1, 1983 through December 31, 1983 $ 400:per EDU January 1, 1984 through March 31, 1984 $ 600 per EDU April 1, 1984 through June 30, 1984 .$ 880 per EDU July 1, 1984 and there- after until changed by Resolution of the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT C. The Major Facilities Charge shall he payable at the time of the issuance of a building permit and shall be a condition precedent to connection to any water sys- tem located within the boundaries of COSTA REAL MUNICI- PAL WATER DISTRICT. d. An equivalent dwelling unit (EDU) is established as follows: (1) (2) (3) (4) (5) Type of Ruilding, Structure or Use Each-space of a trailer court or mobile home park Each duplex Each separate apartment 'in an apartment house Each housing accommodation designed for occupancy by a single person or one family, irrespective of the number actually occupying such ac- commodation Each room of a lodginghouse, boardinghouse, hotel, motel or other multiple dwelling designed for sleeping accom- modations for one or more individuals: ,Equivalent Dwelling Unit (EDU) 1.00 2.00 1.00 1.00 -6- Without cooking facilities With cooking facilities (6) Churches, theaters and audi- toriums, per each unit of . seating capacity (a unit be- ing one hundred fifty persons or any fraction thereof) (7). Restaurants: No seating Seating Delicatessen or fast food, using only disposable tableware: No seating Seating (8) Automobile service stations: Not more than four gaso- line pumps More than four gasoline pumps (9) Self-service laundries, per each washer (10) Office space in industrial Divide the gross or commercial establish-. floor area of the ments not listed above and building in square warehouses feet by 1800 (11) Schools: Elementary schools For each sixty pupils or fraction thereof Junior high schools For each fifty pupils or fraction thereof High schools For each thirty pupils or fraction thereof 0.60 1.00 1.33 2.67 2.67 plus 1.00 per each 7 seats or fraction thereof 2.67 2.67 plus 1.00 per each 21 seats or fraction thereof 2.00 3.00 .75 1.00 1.00 1.00 -7- (12) In the case of all commer- cial, industrial and. busi- ness establishments not included in subdivisions 1 through 10, inclusive, the number of equivalent dwel- ling units (EDU) shall be determined in.each case by the District ,Engineer. e. Where it is proposed to alter a structure in any way which results in a greater potential water de- mand'therefor, or to change or replace an existing water meter by a meter of a larger size, the number of EDU's, both prior and subsequent to such alteration or. change of meter size shall be determined pursuant to the provisions of paragraph (d) hereinbefore, and a Major Facilities Charge based on the difference between the units applicable prior to such alteration or change of meter size shall be paid. The charge provided for in this section shall be deemed a Major Facilities Charge for purposes of this Resolution, even if a new physical connection of a structure is not required and the continuance of the original physical connection is conditioned on payment of the charge provided for in this section. f. No Major Facilities Charge shall be payable when an existing water meter is replaced by two meters, solely to provide for the separate metering of land- scape irrigation. Sizing of meters installed pursuant to this section shall be within the sole discretion of the District General Manager. 3. A Direct Connection Surcharge is hereby established under -8- i the following terms and conditions: a. In addition to all other charges established by ordinan:ces, resolutions and rules and regulations of COSTA REAL MUNICIPAL WATER DISTRICT, there is es- tablished a connection charge, to be known as "Direct Connection Surcharge", to be applied to any new water service or altered water service requirement wherein there was no construction or dedication of water fa- cilities to a public agency by the owner or prior owner of the real property. b. The Direct Connection Surcharge shall be an amount per equivalent dwelling unit (EDU) as identi- fied in Section (21, Paragraph (d) hereinbefore set forth. The amount of the Direct Connection Surcharge per EDU shall be as follows: . and shall be a condition precedent to connection to any $ 550 per EDU January 1, 1984 and thereafter until changed by Resolution of the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT c. The Direct Connection Surcharge shall be pay- able at the time of the issuance of a building permit water system located within the boundaries of the COSTA REAL MUNICIPAL WATER DISTHICT. d. Where it is proposed to alter a structure in any way which results in a greater potential water de- mand therefor, or to change or replace an existing water meter by a meter of a larger size, the number of : EDU's, both prior and subsequent to such alteration or change of meter size shall be determined pursuant to . - 9 - the provisions of section (21, paragraph (d) hereinbe- fore, and a Direct Connection Surcharge based on the difference between the units applicable prior to such I alteration or change of meter size shall be paid. The The charge provided 'for in this section shall-be deemed . ti Direct Connection Surcharge for purposes of this Re- solution, even if a new physical connection of a struc- ture is not required, and the continuance of the origi- nal physical connection is conditioned on payment of the charge provided for in this section. e. No Direct Connection Surcharge shall be payable when an existing water meter is replaced by two meters; solely to provide for the separate metering of land- scape irrigation. Sizing of meters installed pursuant to this section shall be within the sole discretion of the District General Manager. 4. Any determination made pursuant to this Resolution may be appealed to the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT. 5. Where, in the opinion of the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT, special conditions require the payment of any Major Facilities Chatges or Direct Connection Surcharges at a time other than at the issuance of a building permit, the District may provide for such charge to be paid at a time.agreed to by written agreement with the owner of the property to which such charge applies. 6. There is hereby created a Capital Development Fund into which all funds collected under this Resolution shall be deposited. The monies in such Capital Development Fund shall be used solely for - 10 - ‘. 4 the acquisition and construction of water facilities and systems, to repay principal and; interest on bonds issued for the construction of such water facilities and systems and to repay federal or state loans or advances made to the COSTA REAL MUNICIPAL WATER DISTRICT for the construction of such water facilities and systems. ADOPTED, SIGNED AND APPROVED this 20th day of July, 1983. /S/ N. M. ALMACK N. M. ALMACK, President of COSTA REAL MUNICIPAL WATER DISTRICT and of the Board of Directors thereof. ATTEST: /S/ FRED W. MAERKLE FRED W. MAERKLE, Secretary of COSTA REAL MUNICIPAL WATER DISTRICT and of the Board of Directors thereof. - 11 - 4 , STATE OF'CALIFORNIA ) COUNTY OF SAN DIEGO I, FRED W. MAERKLE, Secretary of the COSTA REAL MUNICIPAL WATER DISTRICT and of the Board of Directors thereof, do hereby certify that the foregoing Resolution was duly adopted by the Board of Directors of said District at a regular meeting of the Board held on the 26th day of July, 1983, and that it was adopted by the fol- lowing vote: .' AYES: Directors: ALMACK, BONAS, KELLY, MacLEOD and MAERKLE NOES: Directors: None ABSENT: Directors: None /S/ FRED W. MAERKLE FRED W. MAERKLE, Secretary of COSTA REAL MUNICIPAL WATER DISTRICT and of the Board of Directors thereof. . - 12 - - STATE OF CALIFORNIA ) ss. COUNTY OF SAti DIEGO .I I FRED W. MAERKLE, Secretary of the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT, do hereby certify that the above.is a full, true and correct copy of Resolution No. 439 of the Board of Directors of COSTA REAL MUNICIPAL WATER DISTRICT and that the same has not been amended or repealed. Dated: July 20, 1983 FRED W. MAERKLE, Secretary of COSTA REAL MUNICIPAL WATER DISTRICT and of the Board of Directors thereof. .