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Home My WebLink About1992-09-08; Municipal Water District; 186; Purchase of Hydraulic Comminutors/ ,,;o CARLSBAD V-NICIPAL WATER DISTRICT - 7GENDA BILL’; “’ c-.-l & k m In. Al DEPT. HD. { CITY ATTY r CITY MGRa I AB # I86 - T’TLE: ADOPT RESOLUTION DECLARING AGRICULTURE MTG. 09/08/92 WATER USE AS PRACTICED IN CARLSBAD AS A DEPT. CMWD MUNICIPAL AND INDUSTRIAL USE OF WATER RECOMMENDED ACTION: Adopt Resolution No. &I a declaring agricultural water use as practiced in Carlsbad is a Municipal and Industrial Use of Water. ITEM EXPLANATION: In accordance with the Carlsbad Municipal Water District’s Water Reclamation Master Plan, Phase I project, reclaimed water is proposed to be used for two golf courses, two agri- industrial users and CalTrans. This Phase I project is to be funded through proceeds of a State Water Resources Control Board Low-Interest Loan. In evaluating the proposed project, it was determined to be feasible if the Metropolitan Water District determined our project to be eligible for MET’s Local Project Program (LPP). MET instituted the LPP with a principal goal to encourage and support reclaimed water projects. This LPP Program initially provided capital financing for reclaimed water facilities. However, in 1986, the program was altered to provide for the purchase of the reclaimed water from the local agency and sale back to the appropriate member public agency at an established rate (currently $154.00/acre foot). CMWD relied on the MET’s representation that the subsidy would continue for reclaimed water. This in turn, made the reclaimed water program and repayment of the $5,000,000 loan financially feasible. Some Metropolitan staff have recently stated that agricultural water is deemed surplus water and as a result projects serving reclaimed water to AG users will not be eligible for the LLP. This, in effect, endangers the feasibility of our reclaimed water project. There are two alternatives to MET’s recent determination. The first alternative is to re- evaluate our whole reclaimed water program. The second alternative is to indicate, by resolution, that Carlsbad considers our agri-business uses to be a Municipal and Industrial water use, with the right to be treated the same as any other Municipal or Industrial use in the City. Therefore, staff has prepared the attached resolution stating that water served to agriculture in Carlsbad is a Municipal and Industrial water use based on the findings contained in the resolution, with the right to be treated on the same basis. In addition, the City and CMWD are committed to provide water service to the project’s users and that if reclaimed water is not available, we will continue to serve water imported by Metropolitan Water District through the San Diego County Water Authority. Page 2 of Agenda Bill No. 186 FISCAL IMPACT: Although there is no immediate fiscal impact from adoption of this resolution, the reduction in the anticipated contribution from Metropolitan may force the District to re-evaluate the finances for this reclaimed water project. This reduction in scope represents a significant change in the potential customer base, and therefore, a reduction in revenues available to finance system operations and construction. If MET stands by their decision, the District will need to reconsider its proposed reclaimed water capital improvement program. EXHIBIT 1. Resolution No. %L . 1 2 I? 4 5 E ‘i t 5 l( 13 1: 1: 14 1: l( 1: 1E 1E 2( 21 2: 21 24 2: 2t 2’; 2E RESOLUTION NO. 812 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, CARLSBAD, CALIFORNIA DECLARING AGRICULTURE WATER USE AS PRACTICED IN CARLSBAD IS A MUNICIPAL AND INDUSTRIAL USE OF WATER WHEREAS, the Carlsbad Municipal Water District is proceeding with Phase I of its Water Reclamation Master Plan (herein referred to as the Project) whereby reclaimed water will be delivered and used for the irrigation purposes by two golf courses, two agri-business users and CalTrans, and WHEREAS, the Carlsbad Municipal Water District has applied to the State Water Resources Control Board for a $5,000,000 low interest loan through the Clean Water Bond Law of 1984 and the Clean Water and Water Reclamation Bond Law of 1988 to fund the Project; and WHEREAS, the State Water Resources Control Board has approved the Project and authorized a loan to the Carlsbad Municipal Water District; and WHEREAS, the Metropolitan Water District staff indicated the Carlsbad Municipal Water District that Metropolitan would contribute to the Project through its Local Project Program (LPP) and as a result the Carlsbad Municipal Water District, relying on those indications, proceeded with the State low-interest loan application; and WHEREAS, the Carlsbad Municipal Water District would not have applied for the State low-interest loan without those assurances, since without the Metropolitan Water District contribution (LPP) the Project, as proposed, would be infeasible; and WHEREAS, both the Carlsbad Municipal Water District and the City of Carlsbad are committed to providing water service to the projects’ proposed users and, that if - 1 2 3 4 r v e 7 E S 1c 13 li 13 14 1t 1E 17 1E 15 2c 23 2i 2: 24 2E 2e 27 2f reclaimed water is not economically available, the Carlsbad Municipal Water District will continue to serve these users with imported water from Metropolitan Water District through the San Diego County Water Authority; and WHEREAS, serving reclaimed water to the five proposed users will reduce the demand on the Carlsbad Municipal Water District for imported potable water; and WHEREAS, under both State and City law water service to the projects’ proposed customers including agri-business users is considered a municipal use of water. Under the City’s Municipal General Plan, Local Coastal Plan, and the Zoning law agriculture is considered an open space use as are golf courses and median landscaping. All of these plans are mandated by State law. State law also recognizes agriculture as a municipal open space use thorough the Williamson Act. The City, through zoning, has determined that the flower fields, one of the proposed agri-business users of reclaimed water, will be preserved for agricultural, tourism and aesthetic reasons. WHEREAS, agri-industrial uses in Carlsbad consist mainly of high value crop production (vegetables and flowers), and are vital to the economy of the City and the region as are other industrial uses in the City. It is classified as an industrial, income and job producing use by the City’s zoning codes and should be treated the same as any other industry in the City. WHEREAS, it also has been determined that continued water service to these proposed project users is necessary if the City of Carlsbad is to develop in accordance with its state-mandated and adopted General Plan including the Land Use Element, Open Space Element and Conservation Element. Agriculture is an integral part of municipal and industrial development in the City and is of great importance to the City’s overall economy and the well-being of the citizens; 1 2 3 4 E c e 7 E S 1c 11 1: 1: 14 If 1t 17 1E IS 2c 23 2: 2: 24 2c 26 27 2E THEREFORE, BE IT RESOLVED, that the Board of Directors of the Carlsbad Municipal Water District find and determine that agriculture water use as practiced in the City of Carlsbad is a Municipal and Industrial use of water which provides revenue and jobs for the City of Carlsbad and that both the City of Carlsbad and the Carlsbad Municipal Water District provide water service to agriculture on the same basis as any other Municipal and Industrial use and, therefore, has the right to be treated on the same basis and as a result agriculture is fully eligible for the Metropolitan Water District’s Local Projects Program (LPP). PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad Municipal Water District held on the day of SEPTEMBER , 1992, by the following 8th vote to with: AYES: Board Members Lewis, Kulchin, Larson, Stanton, Nygaard NOES: None ABSENT: None ATTEST: (SEAL) ..-