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HomeMy WebLinkAbout1992-10-14; Municipal Water District; 10-01; Joint Participation Agreementz 0 F 0 4 i 0 z 3 8 AB # 10-01 MTG. 10/14192 CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL DEPT. HD. TITLE: JOINT PARTICIPATION AGREEMENT BETWEEN METROPOLITAN WATER DISTRICT SAN DIEGO COUNTY WATER AUTHORITY AND ATTY - DEPT. CMWD I CARLSBAD MUNICIPAL WATER AUTHORITY I ClTy MGR. RECOMMENDED ACTION: Recommend to the Board of Directors that the Executive Manager be authorized to enter into the Joint Participation Agreement between Metropolitan Water District, San Diego County Water Authority and Carlsbad Municipal Water District. ITEM EXPLANATION: The Carlsbad Municipal Water District (Carlsbad) has requested the Water Authority enter into a Joint Participation Agreement between the Metropolitan Water District of Southern California (MWD), the Authority and Carlsbad. The agreement would allow MWD to financially participate in the Encina Basin Water Reclamation Project Phase I under MWD’s Local Project Program (LPP). The attached draft agenda bill to the Board of Directors details this agreement and requests the board to authorize the Executive Manager enter into the Joint Participation Agreement. CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL VITG. 3EPT. CMWD 4B # I TITLE: CARLSBAD MUNICIPAL WATER IDEPT. HD. AGREEMENT WITH THE CITY ATTY CITY MGR. SAN DIEGO COUNTY WATER AUTHORITY 3ECOMMENDED ACTION: DRAFT Adopt Resolution No. authorizing the Executive Manager to enter to an agreement with the San Diego County Water Authority to provide Reclaimed Water Development Funds to the Carlsbad Municipal Water District. ITEM EXPLANATION: The first phase of the Encina Basin Water Reclamation Project will yield 2049 acre feet per year of reclaimed water. Carlsbad Municipal Water District will be purchasing the reclaimed water from both Vallecitos Water District’s (Vallecitos) existing 2.0 million gallon per day full Title 22 Meadowlark Water Reclamation Treatment Facility, and commencing in FY 1994, from the Gafner Reclamation Plant owned and operated by the Leucadia County Water District (Leucadia) and currently being upgraded to produce Title 22 tertiary treated water. CMWD will be purchasing the reclaimed water from Vallecitos and Leucadia at a wholesale rate and will purvey it to users in Carlsbad through a distribution system owned and operated by CMWD. Both Vallecitos and Leucadia have signed a reclaimed water agreement with CMWD detailing the responsibilities for production and distribution. CMWD is currently providing reclaimed water, produced at the Meadowlark Water Reclamation Plant, to the Aviara development through temporary facilities. The Phase 1 capital project consists of developing a permanent pumping and distribution system, improveing the existing Mahr Reclaimed Water Reservoir and converting of two existing potable reservoirs to reclaimed water. These improvements will be funded through the $5,000,000 low-interest loan from the State Water Resources Control Board (SWRCB). Users will include landscape and school irrigation at the Aviara development, the Aviara and LaCosta North golf courses, two agricultural growers (Frazee and Ukegawa) and Caltrans. Approximately 400 acre feet per year, produced by the Gafher Water Reclamation Plant and purchased from Leucadia, will be used by the La Costa South Golf Course. In reviewing CMWD’s application for funding, County Water Authority found that the required eligibility criteria has been met. CMWD is utilizing a new water supply, which relieves a demand on the County Water Authority for imported water, and it has demonstrated a financial need in that the cumulative capital and operating expenses of the project are in excess of its revenues. Due to the financial need demonstrated by CMWD and its having met all other eligibility criteria, the County Water Authority approved CMWD’s application and authorized its General Manager to enter into an agreement with CMWD to provide a maximum $100 per acre-foot incentive for all reclaimed water that is actually used. Page 2 of Agenda Bill No. As required by the adopted Reclaimed Water Development Fund guidelines, CMWD will go through an annual review during which the actual costs and revenues of the past year, combined with revised projections for the coming year and beyond, will be used in determining whether CMWD continues to demonstrate a financial need. Depending on the results of this annual review process, the Water Authority’s contribution may be lowered, set at the maximum contribution rate, terminated or extended for an additional year. In addition, CMWD will be required to reimburse the County Water Authority the amount of $59,346 it received through the Financial Assistance Program (FAP), plus interest, for preparation of the facilities plan, master plan, and state loan documents. This reimbursable amount will be deducted from CMWD’s Reclaimed Water Development Funds. FISCAL IMPACT: This Agreement will allow the San Diego County Water Authority to provide CMWD with the Reclaimed Water Development Funds of $100 per acre foot for reclaimed water. These funds will be used to help offset the cost of CMWD’s Water Reclamation program by providing funds (including funds from the sale of reclaimed and from Metropolitan Water District’s Local Project Program (LPP) for the repayment of the $5,000,000 low-interest loan from the State Water Resources Control Board. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT AUTHORIZING THE EXECUTIVE MANAGER TO ENTER INTO AN AGREEMENT WITH THE SAN DIEGO COUNTY WATER AUTHORITY TO PROVIDE RECLAIMED WATER DEVELOPMENT FUNDS TO THE CARLSBAD MUNICIPAL WATER DISTRICT WHEREAS, the Board of Directors of the Carlsbad Municipal Water District approved the Reclaimed Water Master Plan; and WHEREAS, Phase I of the Reclaimed Water Master Plan includes improvements to the Mahr Reclaimed Water Reservoir, development of a permanent pumping and distribution system, and conversion of two existing reservoirs to reclaimed water; and WHEREAS, these improvements will be funded through the $5,000,000 low-interest loan fiom the State Water Resources Control Board; and WHEREAS, the San Diego County Water Authority has approved the Carlsbad Municipal Water District's application for funding and has authorized the Authority's General Manager to enter into an agreement with the District to provide a maximum $100 per acre foot incentive for all reclaimed water that is used; and WHEREAS, this incentive will be used to offset the District's costs for the Water Reclamation program and assist with the repayment of the $5,000,000 low-interest loan from the State Water Resources Control Board. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors as follows: 1. That the above recitations are true and correct. //I //I 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. That the Board hereby authorizes the Executive Manager to enter into an agreement with the San Diego County Water Authority to provide Reclaimed Water Development Funds to the Carlsbad Municipal Water District. PASSED, APPROVED AND ADOPTED at a meeting of the Carlsbad Municipal Water District held on the day of , 1992, by the following vote to wit: AYES: NOES: ABSENT: CLAUDE A. LEWIS, President ATTEST: ALETHA L. RAUTENKRANZ, Secretary (SEAL) .