HomeMy WebLinkAbout1988-10-04; City Council; 9664; Approval of CRMWD Capital Projects for FundingCl- OF CARLSBAD - AGENt’- BILL
ISTRICT (CRMWD) CAPITAL PROJECTS FOR UNDING PURSUANT SUPPLEMENT NO. SEVEN OF TEE WATER SERVICE AGREEMENT
RECOMMENDED ACTION:
Adopt Resolution N0.$8~356 approving specific capital projects of the Costa Real Municipal Water District (CRMWD) Capital Improvement Plan and provide funding for those projects from the enterprise fund, Water Capital Project Fund.
ITEM EXPLANATION:
Supplement No. Seven of the Water Service Agreement (Attachment llB1l) between the City and CRMWD provides for the funding of certain water capital projects proposed for construction by CRMWD. This Supplement contains an approved 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. The Supplement also required Water Enterprise funds in the amount of $3,569,089, plus accumulated interest to be placed in a Water Capital Projects Fund to finance the approved projects.
To use funds in the Water Capital Fund in any fiscal year, CRMWD must submit a capital projects budget for the project or projects for review and approval by the City Council. The projects submitted must be on the Supplement No. Seven approved list. For fiscal year 1988-89, the CRMWD has submitted the projects shown in Attachment VrA1: .
Staff has reviewed the CRMWD Fiscal Year 1988-89 Capital Budget request and has determined that the projects for which funds are requested are consistent with the projects listed in Supplement No. Seven of the Water Service Agreement. Accordingly, Staff recommends that the City Council review and approve the projects submitted by CRMWD and authorize funds to be expended pursuant to the procedures established in Supplement No. Seven.
FISCAL IMPACT:
Previous approval of Supplement No. Seven by the City Council placed $3,569,089 plus earned interest into a Water Capital Projects Fund. The funds to be disbursed to CRMWD for those projects that benefit the original City water service area. The recommended action will allocate $3,144,885 from the Water Capital Fund for completion of CRMWD projects approved by City staff for FY88-89.
EXHIBITS:
1. Resolution No. 88-356 . 2. Copy of CRMWD Capital Improvement Program FY88-89. 3. Copy of Supplement No. Seven.
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RESOLUTION NO. 88-356
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING PAYMENTS TO COSTA REAL MUNICIPAL WATER DISTRICT FOR CAPITAL PROJECTS IN ACCORDANCE WITH SUPPLEMENT NO. SEVEN OF THE WATER SERVICE AGREEMENT.
WHEREAS, the City of Carlsbad and Costa Real Municipal Water
District have approved Supplement No. Seven to the Water
Service Agreement which provides for financing and construction
of certain replacement water facilities and transmission lines,
and;
WHEREAS, the Costa Real Municipal Water District has
requested approval of certain projects to be funded by funds
in the Water Capital Fund pursuant to Supplement No. Seven,
and;
WHEREAS, City staff has reviewed the District's request and
determined that it is in conformance with the provisions of
Supplement No1 Seven to the Water Service Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad as follows:
1. Pursuant to the Seventh Supplement to the Water Service
Agreement between the City of Carlsbad and Costa Real Municipal
Water District, the projects in Attachment IfA", attached hereto
and made a part thereof, are hereby approved.
2. Staff is authorized to reimburse the Costa Real
Municipal Water District for the City's pro-rata share of the
projects listed in Attachment ::A'@ pursuant to the provisions
of Supplement No. Seven to the Water Service Agreement.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council held on the 4th day of w, 1988,
by the following vote, to wit:
AYES: Council Members Lewis, Larson, Mamaux and Pettine.
NOES: None
ABSENT: Council Member Kulchin
ATTEST:
(SEAL)
C
COSTA REAL MUNICIPAL WATER DISTRICT
CAPITAL IMPROVEMENT PROGRAM
Estimated City of Carlsbad Contributions for Water Rehabilitation Projects Which Benefit the "Original City Service Area" for Fiscal Year 1988-89
*********************************f*+**************
Project Estimated City Contributions
Reservoirs
Squires Evans Point $
Pipeline Replacement
E.C.R. - Madonna Hill to Tamarack
Village Area Rehabilitation
$
Arbuckle Cherry Chinquapin Harrison & Locust Hope & Home
Appurtenance Replacement
Valve Clusters
Oak C Tyler Oak & Roosevelt $
1,552,100
500,000
833,785
25,000
30,000
30,000
70,000
90,000
6,000
8,000
F.Y. 88-89 Total $ 3,144,885 -----m----w ------e---e
ATTACHMENT "A"
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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:
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Reserved for Construction
Approved Capital Projects
Undesignated
$ 445,851 I
65,609 I
3,288,293 I
$3,799,753 I
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 fbr
Debt Service" to satisfy the Water Works Revenue Bond issues' o'f
1958, 1960, and 1970 and to fund any future capital requiremenits
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 toithe
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
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.
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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.
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. Exhibit A- Costa Real Municipal Water District l cityg Benefit fra Enhancement Portion of Project8 Listed in the CRMWD Capital Improvement Plan
District- Total Wide city Enhancement
Proiect Benefit Benefit cost Squires Reservoir M6&3$& +$3,740,000 $4,400,000 hrans Point Res. 500,000 soo, OOOJ*J A-+ Telemetry/Control ri,ooo 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,soo,ooo Replc/Rnlrg PAR Line 293,800 lS8,200 452,000 Pt. 'D" Cogeneration 600,000 600,000 Squires Cogeneratfon 600,000 600,000 Telemetry/Control 363,000, 363,000 Replc/Enlrg ECR Line 211,650, 1,199,350 1,411,ooo * Replc/Rnlrg PAR Line 1,012,700- s4sr300 1,558,OOO Rep/Eng Squires Line 93,150 S27,850 621,000 Village Rehabilitation(3) soo,ooo 500,000 Telemetry/Control 220,000' 220,000
Sub-Total $4,09S,30Q i12,056,700 $16,1S2,000
Current or Completed Projects $ 3s5,ood $355,000
Total corrt $4,09S,300 $12,411,700 $16,S07,000 1W=-m1=1= ImwIsmcIIII lmlN==s=sI