HomeMy WebLinkAbout1987-06-09; City Council; 7521-6; Water Service Agreement. .
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Ck=J OF CARLSBAD - AGENPq BILL ,l,i d-7
AB# 7521 SUP6 ;,&.
MTG 6/g/87 L SUPPLEMENT SEVEN TO WATER SERVICE
AGREEMENT BETWEEN THE CITY AND
DEPi u & M CRMWD APPROVING SPECIFIC WATER
CAPITAL PROJECTS & PROVIDING FUNDING
RECOMMENDED ACTION:
CITY ATTY&F
CITY MGR&&
Adopt Resolution No. qJ/$/ approving specific captial projects of the Costa
Real Municipal Water District (CROWD) Capital Improvement Plan and providing
funding for these projects from the City Water Fund.
ITEM EXPLANATION:
The Water Service Agreement between the City and CRMWD provides for the funding
of water capital projects constructed by CRMWD. This Supplement approves a
list of water capital projects which will benefit the original City service
area, authorizes the expenditure of water enterprise capital construction funds
and establishes a procedure by which CRMWD will be reimbursed for its costs
and for the costs of construction. City funds in the amount of $3,569,089 plus
accumulated interest will be placed in a Water Capital Projects Fund and dis-
bursed to the District upon submission of billings relating to the construction
of the approved projects. No funds are to be expended for other CRMWD capital
projects which are not included on the approved list.
FISCAL IMPACT:
Water Enterprise Funds are to be used for water projects and operations. The
FY 1986-87 Annual Financial Report at Exhibit 1 indicates $3,799,753 is in the
Retained Earnings and is available for water capital projects as shown below:
Fund Equity Amount
Reserved for Construction $445,851
Designated for Approved Capital Projects 65,609
Undesignated 3,288,293
Total $3,799,753
The Sixth Supplement approved by Council by Resolution No.c)03L authorized
expenditure of $230,664 from these reserves for construction of the Ellery
Reservoir/Tri-Agency Pipeline intertie, thus $3,569,089 plus earned interest
is available for these projects. Additionally, $911,291 is retained by the
City for debt service and any future City capital requirements. This action
will provide for the expenditure of these funds for water capital projects
planned and constructed by CRMWD which benefit the original City water service
area.
EXHIBITS:
1. Enterprise Funds Combining Balance Sheet, 6-30-86.
2. Resolution No. 9/ltr*
CITY OF CARLSBAD
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
JUNE 361986
WITH COMPARATIVE FIGURES FOR JUNE39 1985
ASSETS
Cash and investments
Receivables:
Accounts
Accrued interest
Due from other funds
Inventory, at cost
Prepaid expenses
TOTAL CURRENT ASSETS
RESTRICTED ASSETS
Cash and investments
Accrued interest
TOTAL RESTRICTED P.jSETS
INVESTMENT IN SEWAGE
TREATMENT FACILITY
PROPERTY, PLANT AND EQUIPMENT
Land and water rights
Buildings
Structures and improvements
Wells, reservoirs, and dams
Transmission and distribution lines
Sewers, sewer lines and wells
Filters and pumps
Fire hydrants
Equipment and vehicles
Fire protection service
Construction in progress
TOTAL PROPERTY,
PLANT AND EQUIPMENT
LESS ACCUMULATED DEPRECIATION
NET PROPERTY,
PLANT AND EQUIPMENT
TOTAL ASSETS
water utirlty
$3,501,912
1,282,801
23,649 -
135,218
Totals
Sewer
$ 8,063,102
8,380
67,030
71,435
14,674
1986
$11,565,014
1985
$ 7A30.181
1291,181
90,679
71,435
149,892
1,212,322 -
63,016
125,217
5,320
4,943,5&l 8224,621 13,168,201 8,836,056
552,931 -
4,590 -
557,521 -
552,931 511,460
4,590 -
557,521 511.460
16,440,927 16,440,927 16366,984
231,956
37,188
227,250
1,289,152
4,068,674
4,684 -
203,345
5,759 -
37,948 -
-
5,090,446 -
-
450,563 -
2,657,916
459,206 459,206
37,188 37,964
37,948 37,948
1,289,152 1,289,853
4,068,674 4,074,095
5,090,446 4,535,307
4,684 147,349 - 372,811
653,908 669,467
5,759 5,759
2,657,916 2.604,423
5,840,758 8,464,123 14304,881 14,234,202
(2,016,049) (1,77ww (3,795,557) (3,723,780)
3,824,709 6,684,615
$9,325,810 $31,350,163
10,509,324
$40,675,973
10,510,422 t
$36224,922
Contrnued on next page
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~.&L..&...-- _,.‘. _.-..I - .*-. *-~ .I-. -
Q I I 1
i I a a II a a aI I a
LlABlLlTlES
Current Liabilities
(payable hum current assets)
Accounts payable
Accrued wages
Deposits payable
Due to other funds
TOTAL CURRENT LIABILITIES
(payable from current assets)
Current Liabilities
(payable fnwn restricted assets)
Accrued interest
Current portion of revenue bonds payable
TOTAL CURRENT LIABILITIES
(payable from restricted assets)
TOTAL CURRENT LIABILITIES
Long-Term Liabilities
Revenue bonds payable net of
unamortized discount of $4,936 in 1986
($6,170 in 1985)
Deferred revenue
TOTAL LIABILITIES
FUND EQUITY
Contributed capital
Retained earnings:
Reserved for construction
Reserved for debt sewice
Unreserved:
Designated for approved
capital projects
Undesignated
TOTAL RETAINED EARNINGS
TOTAL FUND EQUITY
TOTAL LIABILITIES AND
FUND EQUITY
Water
Utility
Totals
Sewer 1986 1965
$1,266,378 $ 11,281 $ 1,277,659 $ 378,392
22,529 12,252 34,781 25,708
40,822 - 40,822 60,628
71,828 146 71,774 63,016
1401,357 23.679 1,425,0X 527,744
21,265
140,000 - 21,265
140,000
161,265 - 161,265
1562,622 23,679 1,586,301 682,682
627,064
2,308,777
2,332,456
627,064 765,830
2,308,777 2,454,778
4,522,142 3,903,290 2,189,686
2,425,080 19,831,353 22,256/W 22,182,440
445,851s -
911,291 -
65,609 + 2,155,778
3,288,293 3c- 7,030,576
4,711,044 9,186,354
7,136,124 29,017,707
$9,325,810 $31,350,163
24,938
130,000
154,938
445,851 622,995
911,291 887,441
2,221,387
10,318,869
13,897,398
36,153,831
1,329,064
7.299.692
10,139,192
32,321,632
$40.675973 $36224,922
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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
3s follows:
1. The Seventh Supplement to the Water Service Agreement between the
Xty of Carlsbad and Costa Real Municipal Water District for the construction
If water facilities and transmission lines marked Exhibit A, attached hereto
3nd made a part thereof is hereby approved.
2. That the Mayor of the City of Carlsbad is hereby authorised 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
leld on the gth day of June , 1987, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Mamaux, Pettine, Larson
NOES: None .
ABSENT: None
ITTEST:
tiETH.A L. RAUTENKRANZ; City Clerk
4’
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, financing 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-
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
. This Agreement is executed on the day of 9
1987.
ATTEST:
L24tbkbpQk ALETHA L. RAtiTENKRANZ
City Clerk
APPROVED AS TO FORM:
City Attorney 'J
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 Municipal Water District Tity. Benefit free; Enhancement Portion
of Projects Lieted in the CRHWD Capital Improvement Plan
District- $otal Wide city Enhbncement Project Benefit Benefit cost Squires Reservoir s6so~ooo $3,740,000 $4,400,000 Evans Point Res. Telemetry/Control ri,ooo 500,000 500,000 36,000 77,000 Village Rehabilitaion (1) 1,350,000 1,350,000 Village Rehabilitation(Z) 2,000,000 2,000,000 San Luis Rey Well Field 1,500,000 1,500,000 Replc/Enfrg PAR Line 293,800 158,200 452,000 Pt. 'D" Cogeneration 600,000 600,000 Squires Cogeneration 600,000 600,000 Telemetry/Control 363,000 363,000 Replc/Enlrg ECR Line 211,650 1,199,350 1,411,000 * Replc/Enlrg PAR Line 1,012,700 545,300 1,558,OOO Rep/Eng Squires Line 93,150 527,850 621,000 Village Rehabilitation(3) 500,000 500,000 Telemetry/Control 220,000 220,000
Sub-Total $4,095,300 $12,056,700 $16,152,000
Current or Completed Projects $ 355,odd $355,000
Total Cost $4,095,300 $12,411,700 $16b507,000 es:1'-=zrzs Icszx=r=sr= rzr=r=rr==