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HomeMy WebLinkAbout1989-04-18; City Council; 9985; Proposed Agreement with CRMWDCIT-OF CARLSBAD - AGENDFBILL IlGN m AB#- TITLE: MTG.4/18/89 PROPOSED AGREEMENT WITH COSTA REAL MUNICIPAL WATER DISTRICT DEPT.Mavor- RECOMMENDED ACTION: Review proposed agreement and direct staff as Council deems appropriate. ITEM EXPLANATION: Mayor Lewis and Board President Woodward have developed a conceptual agreement that would establish Costa Real Municipal Water District as a subsidiary district of the City of Carlsbad. The conceptual agreement and a press release outlining the proposal are attached to this agenda bill. If the Council agrees in concept to this proposal, Council action would be to direct staff to prepare a resolution of consent for Council consideration and action at its next meeting. FISCAL IMPACT: None EXHIBITS: 1. Press Release 2. Outline of Agreement FOR IMMEDIATE RELEASE contact: Mayor Bud Lewis 484-2830 President Woody Woodward 488-2722 CARLSBAD, CA--April 12, 19894fficials from the Costa Real Municipal Water District and the City of Carl&ad have announced plans to introduce a conceptual agreement that would create a subsidiary district to provide water service for Carl&ad. The proposed agreement was brought about by discussions between Costa Real president Woody Woodward and mayor Bud Lewis along with staff from the two agencies. The agreement will be presented to the respective governing bodies for reaction and direction on April 18th. The conceptual agreement provides that each agency would voluntarily consent to establishing Costa Real as a subsidiary district of Carl&ad by January 1, 1990. Mayor Lewis said, “The consolidation of water operations has been a long-standing goal of the Carl&ad city council. This agreement would accomplish that goal and eliminate the need for a costly, and possibly divisive election on the issue.” District officials have stated direct electlon expenses alone could have cost the taxpayers up to $100,000. Costa Real President Woodward stated “Current law holds the District responsible for footing the bill of these direct election costs. There is no question that these funds could be better spent elsewhere.” As a subsidiary district, water board members would become a water commission with certain defined responsibilities as outlined in the agreement. The objectives of the agreement would be to provide for a consolidated water operation, unified policy making and efficient provision of water services through the streamlining of operations. Mayor Lewis stated, “A protracted community debate and election over what political institution would be responsible for water service would only detract from the need for planning, developing and maintaining the water system. The existing board has years of experience in the water business and has developed considerable expertise. The council recognizes the valuable input that the new commission will be able to provide In assisting us with the development of master plans, capital improvement projects and budgets necessary to implement a first-class water system for the city. In addition, the commission’s input will be needed in implementing water conservation and water reclamation programs.” If the agencies agree to a voluntary establishment of a subsidiary district, Resolutions of Consent will then be placed on subsequent agendas for approval. If approved, the item would be forwarded to the Local Agency Formation Commission (lAFC0) for their ratification. Finally, the item would be presented to the County Board of Supervisors who would order the establishment of the subsidiary district. This would eliminate the need for the District to bear the costs of the special election. President Woodward said, “The citizens of Carl&ad voted to keep the District separate in 1981. We believe that decision was reached to ensure water revenues are used exclusively for water system capital improvements. When talks first began with the city, fund control was the District’s number one priority. Our community has been assured water revenues will be used for water projects.” In addition, Woodward said, “Local water customers will benefit greatly by an improved planning system that will provide potable water as well as reclaimed water to meet the ever increasing needs of the community.” Costa Real has an extensive Capital Improvement Plan that includes present work on a new 10 million gallon water storage tank, pump station and ultimately the covering and lining of the District’s primary storage facility, Squires Reservoir. According to Woodward, the District adopted a 80 day water storage goai almost two years ago which was the basis for many of Costa Real’s capital improvements. “The value of extensive capital planning becomes very evident in severe weather conditions like the one we experienced last week. During the heat wave, when temperatures soared above 100 degrees, we were able to utilize our reservoir capacity and avoid the need to curtail water use within our community.” Woodward said. Woodward said, “We also feel the citizens of Carl&ad understood the necessity for good water planning. As California is approaching a third dry year, it is imperative that the new water commission continue the goals we have as the current board of directors in planning innovative water projects to meet Carl&ad’s growing needs. I believe a negotiated agreement between the Cii and Costa Real provides a greater opportunity for local input on water Issues than a mandate from the Local Agency Formation Commission. Because, as water commissioners, we will be able to provide input on future improvements, and continue the projects currently underway.” Both sides stressed the only change that would occur with the subsidiary district is the city council would become the legislative body of the district. Mayor Lewis said, “One legislative body will lead to a comprehensive, cohesive and coordinated policy-making approach to water system development.” The agreement also states existing Costa Real employees would continue as employees of the district. Costa Real president Woodward said, “Not only is the agreement the best solution for the people of Carl&ad but it will also allow the district’s very dedicated, hard working employees to remain.” According to Woodward, present water operations are not the only items on the water board and the city council agendas. Woodward said, “Probably the most exciting part of this agreement ls the groundwork lt lays for a coordinated effort to bring water reclamation to Carlsbad. Effective water management in the future will have to include reclamation. Prior to the agreement , the city was solely responsible for reclamation, now the District will have the opportunity to integrate the use of this precious resource with water operations.” Both agencies shared enthusiasm for the conceptual agreement, mayor Lewis said, “I appreciated president Woodward’s ability to start with a clean slate and get to the heart of matters. Both Mr. Woodward and I recognize that there are a lot of major issues facing the community in regard to the development of a reliable water system. Now is the time to address these vital issues.” City and district officials will begin planning for a consolidation after receiving the order from the County Board of Supervisors. District and city staffs anticipate the resolution of numerous administrative and technical issues prior to the January 1, 1990 target date. ### - COSTA RE54.L - CITY OF C-BAD AGREEMENT GOVERNING BODY 1. Costa Real will consent to become a subsidiary district of the City effective no later than January 1, 1990. 2. Costa Real’s name would revert back to Carlsbad Municipal Water District. 3. City Councilmembers will sit as the new district Board (ex-officio). 4. The current Board of Directors wilI assume the position of Water Commissioners. The Commission will appoint offkers and committees in a manner consistent with current Board policies. 5. Initial Commissioner’s terms wilI expire as follows: Woodward January 1992 Henley January 1992 Bonas January 1992 Maerkle January 1994 Greer January 1994 6. The District Board (council) will then reappoint members for another 4 year term, or appoint new members. 7. Commission appointments will be made by procedures currently used for the Board. The 5 divisions will remain with 1 appointment made from each division when possible. 8. Commission Meetings will be held the first and third Wednesdays of the month. With provisions to hold adjourned or special meetings as needed. 9. Commissioners will earn $100.00 per meeting, not to exceed $200.00 per month. 10. The Commissioners will retain ail benefits currently received as Board Members, through their initial term, as speicifed in #5 above. Director’s Benefits: Health Insurance Health Insurance for Retirees (Spouse) Dental Insurance Eye Care Insurance (Spouse) Life Insurance (Spouse) 11. The Board (Council) will hold meetings as needed in conformance with regularly scheduled City Council meetings. 12. Commissioners will continue to represent the District and attend functions of other organizations. All expenses will be reimbursed to the commissioners, however, compensation will not occur. Oreanizations: San Diego County Water Authority (SDCWA)* Assoc. of Cal. Water Agencies (ACWA) ACWAJoint Powers Insurance Authority SDCWA Water Reclamation Advisory Comm. Presidents and Managers Council of Water Util. Assoc. of Water Reclamation Agencies California Special Districts Assoc. National Water Resources Assoc. Water Agencies Assoc. of San Diego County 1 *Appt. Made By Bd. Prcs. .- .’ . Board of Directors (Citv Council) Remonsibilities 1. Adopting Ordinances 2. Adopting Annual Budgets 3. Adopting Annual Capital Improvement Plans 4. Adopting Annual Piicial Statements 5. Approving Any Debt Issuances 6. Setting Annual Tax Rates, Water Rates and Developer Charges 7. Making Commission Appointments 8. Author&g Non Budgeted Expenditures 9. Author-king Expenditures Exceeding Budgeted Amounts 10. Approving of Any Acquisition, Disposition or Lease of District Property 11. Approving Employment Contracts and Setting Salary and Benefit Packages Water Commission Resoonsibilities 1. Developing Potable Water Master Plans 2. Developing Annual Capital Improvement Plans 3. Developing Annual Piicing Plans 4. Developing Annual Budgets and Expenditure Plans 5. Developing Water Conservation Programs 6. Developing Water Reclamation Programs (Master Plan Input Also) 7. Recommending Action on Agenda Items for Board of Directors Consideration OPERATIONS 1. Operational responsibiity of the District will be expanded to include the present master planning, storage and distriiution of the City’s water reclamation system, and other responsibilities delegated by the Board. 2. If proven to be economical, water billing, meter reading and backflow prevention responsibilities will be transferred to the District also. 3. The District’s planned operations center will proceed with construction and be expanded where necessary to accommodate these increased responsiiities and other related activities, as directed by the Board. 2 4. All District finances will remain entirely separate and shall be expended on water related activities only. Appro- priate City expenses will be charged to the District. 5. The District will continue to provide engineering, administration, public information, operations and all other services it currently furnishes. 6. The City Manager will act as the Executive Manager of the District, and will report to the Board of Directors. 7. The General Manager will operate the day-to-day activities of the District and report to the Executive Manager. 8. The District will retain legal counsel. EMPLOYEES 1. This agreement shall not adversely affect or impair the status of any employee of the District or City. 2 All benefits and rights for existing employees shah be continued at a level not less than currently enjoyed. These benefits and rights include vacation and sick leave, insurances, retirement programs, employment contracts, and seniority. 3. No employees shah be laid off unless severe financial difficulties are faced by the District. 3 Schedule of Events April 1 Ith. . . .Last Joint Committee Meeting April 12th. . . .Press Conference (Woodward & Lewis) April 18th. . . .Presentation of Conceptual Agreement (Individually) April 25. . . .Approval of Agreement (Joint Meeting of Board & Council)