HomeMy WebLinkAbout2008-05-20; Municipal Water District; 655; Water supply development program agreementCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL
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AB# 655
MTG. 5/20/08
DEPT. ENG
APPROVE AND AUTHORIZE EXECUTION OF
JOINT PARTICIPATION AGREEMENT FOR LOCAL
WATER SUPPLY DEVELOPMENT PROGRAM FUNDING WITH
THE SAN DIEGO COUNTY WATER AUTHORITY
fupy 7
DEPT. HEAD^^/
CITY ATTY. /2<^
CITY MGR. \jJ^
RECOMMENDED ACTION:
Adopt Resolution No. 1322 to approve and authorize execution of Joint Participation
Agreement for Local Water Supply Development Program Funding with the San Diego County Water
Authority.
ITEM EXPLANATION:
On October 8, 1992, the Carlsbad Municipal Water District (CMWD) executed an agreement with the
San Diego County Water Authority (SDCWA) to obtain a rebate for its Phase I Encina Basin Water
Reclamation Program. The purpose of the SDCWA rebate was to help offset the additional
cost to develop and deliver recycled water to customers compared to the cost of imported water.
In June 2002, the SDCWA Board authorized approval to merge CMWD's Phase I and Phase II project
recycled water demand which increased the eligible demand from 2,050 AFY to 5,000 AFY. Under the
agreement, the CMWD receives a rebate from the SDCWA of $147 per acre-foot (AF) for every
acre-foot retailed to its recycled water customers. For calendar year 2007, CMWD sold over 3,000 AF
and, therefore, received over $450,000 in rebates.
In 2006, the SDCWA established a Local Water Supply Development (LWSD) Program, which
provides a financial incentive of up to $200 per acre-foot (AF) to assist member agencies in the
development of cost-effective water recycling projects that prevent or reduce a demand for imported
water. A new Joint Participation Agreement has been prepared between the SDCWA and CMWD to
obtain the rebate (see Exhibit 2). The new Joint Participation Agreement will terminate the 1992
agreement and provide for a rebate of $200/AF for up to 5,000 AF per year which is $1,000,000.
The term would extend until September 2018.
To maintain eligibility under the new Joint Participation Agreement, the CMWD Recycled Water Rate
is required to be the higher of: 1) CMWD's recycled water rate for sales to end users; or 2) eighty-five
percent (85%) of the lowest applicable potable water rate of the CMWD for the end user. By CMWD
Board policy, CMWD's recycled water rate is presently 95% of its potable water rate. CMWD has the
option in the agreement to change its recycled water rate to be less than 85% of its potable rate, but
the SDCWA will use the 85% rate in calculating the sales received by CMWD. The CMWD will
continue to receive the $200/AF rebate until either its expenses for operation, maintenance,
replacement costs, and annual debt service costs are less than the cost for imported water or
September 2018. In the event that the expenses associated with the Phase I and Phase II projects
become less than the cost of imported water, the rebate shall cease.
ENVIRONMENTAL IMPACT:
A Mitigated Negative Declaration (MND) was prepared for the Phase II project. The Carlsbad
City Council approved the MND on January 25, 2000, under Case No. EIA 99-09, Resolution No.
2000-37. The United States Department of the Interior completed its review of the Phase II project for
compliance with the National Environmental Policy Act (NEPA) and formally approved the NEPA on
March 1,2002.
FOR CITY CLERKS USE ONLY
BOARD ACTION: APPROVED ST
DENIED D
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER-SEE MINUTES D
DEPARTMENT CONTACT: William Plummer, (760) 602-2768, bplum@ci.carlsbad.ca.us
Page 2
FISCAL IMPACT:
Approval and execution of the agreement will result in a significant increase in the amount of rebate
funds received from the SDCWA on the Encina Basin Water Reclamation Program, Phase II project.
The total rebate in calendar year 2007 was approximately $450,000. The rebate will increase to
$1,000,000 per year using the new rate of $200/AF and retailing 5,000 AF/year.
EXHIBITS:
1. Resolution No. 1322 approving and authorizing execution of Joint Participation
Agreement for Local Water Supply Development Program Funding with San Diego County
Water Authority.
2. Joint Participation Agreement for Local Water Supply Development Program Funding between
the San Diego County Water Authority and the Carlsbad Municipal Water District.
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RESOLUTION NO.1322
A RESOLUTION OF THE BOARD OF THE CARLSBAD
MUNICIPAL WATER DISTRICT, CARLSBAD, CALIFORNIA,
APPROVING AND AUTHORIZING EXECUTION OF JOINT
PARTICIPATION AGREEMENT FOR LOCAL WATER SUPPLY
DEVELOPMENT PROGRAM FUNDING WITH THE SAN DIEGO
COUNTY WATER AUTHORITY AND THE CARLSBAD
MUNICIPAL WATER DISTRICT.
WHEREAS, the Carlsbad Municipal Water District executed a Recycled Water
Development Fund Agreement with the San Diego County Water Authority on October 8, 1992 for
Phase I Project of the Encina Basin Water Reclamation Program; and
WHEREAS, in June 2002, the San Diego County Water Authority Board authorized
approval of a new merged Phase I and Phase II project agreement between the San Diego County
Water Authority and the Carlsbad Municipal Water District with disbursements of Local Water
Supply Development incentives; and
WHEREAS, the San Diego County Water Authority Board approved a new Local Water
Supply Development Program Funding for Local Water Supply in 2006; and
WHEREAS, San Diego County Water Authority prepared a new Joint Participation
Agreement to receive an incentive rebate funding in the amount of $200 per acre-foot for up to
5,000 acre-feet per year, or a maximum $1,000,000 per year until September 2018.
NOW, THEREFORE, BE IT RESOLVED by the Board of the Carlsbad Municipal Water
District, California, as follows:
1. That the above recitations are true and correct.
2. That the "Joint Participation Agreement to Provide Incentive Funding" is hereby
approved, and the President is hereby authorized and directed to execute said agreement with the
San Diego County Water Authority.
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of
Directors of the Carlsbad Municipal Water District of the City of Carlsbad held on the
20th day of May. 2008, by the following vote to wit:
AYES: Board Members Lewis, Kulchin, Hall, Packard and Nygaard.
NOES: None.
ABSENT: None.
A LEWIS, President
ATTEST:
JS^U>UO^CKXi^^lviAV^ \
lORRAINE~M. WOOD, Secretary ~)
(SEAL)
"£ :<n -
JOINT PARTICIPATION AGREEMENT FOR
LOCAL WATER SUPPLY DEVELOPMENT PROGRAM FUNDING
BETWEEN
THE SAN DIEGO COUNTY WATER AUTHORITY
AND
THE CARLSBAD MUNICIPAL WATER DISTRICT
This agreement is made this 2~\— day of MA] 2008, between the San Diego County Water
Authority, a county water authority (Water Authority) and the Carlsbad Municipal Water District
(Agency), a municipal water district organized and operating pursuant to the Municipal Water District
Law of 1911, California Water Code section 71000 et seq., and a subsidiary district to the City of
Carlsbad, with respect to the following facts:
RECITALS
1. The Water Authority has established the Local Water Supply Development (LWSD) Program,
(formerly referred to as the Recycled Water Development Fund (RWDF) Program), which provides
financial incentives of up to $200 per acre-foot (AF) to assist its member agencies in the development of
cost-effective water recycling projects that prevent or reduce a demand for imported water. The amount
of funding received is based on actual financial need of the Agency after consideration is given to all
other sources of revenue. The financial need is evaluated on an annual basis and, if eligible, LWSD
Program funding is available for up to 25 years from the initial date recycled water deliveries begin.
2. There is now in effect an RWDF Agreement, executed on October 8,1992 (the "1992
Agreement"), between the Water Authority and the Agency for the development and utilization of
recycled water, which provides for the Agency to receive financial contributions from the Water
Authority's RWDF Program. In October 1992, the Agency began recycled water deliveries eligible for
RWDF Program incentive funding. Initial deliveries were supplied solely from the Vallecitos Water
District's Meadowlark Water Reclamation Plant (MWRP).
3. In June 2002, the Water Authority Board of Directors authorized approval of a new merged
Phase I and II Agreement between the Water Authority and the Agency to increase the acre-feet eligible
to receive RWDF incentives from 2,100 acre-feet to 5,000 acre-feet.
4. It is the intent of the Parties to terminate the 1992 Agreement and to provide for this LWSD
Agreement (Agreement) to replace the 1992 Agreement between the Water Authority and the Agency
in connection with future disbursements of LWSD incentives.
5. The major elements of the Encina Basin Water Reclamation Program, Phase I and II Projects
(Project) are the construction of the Carlsbad Water Recycling Facility and the expansion of the
Meadowlark Water Recycling Plant. Initially, the Carlsbad Water Recycling Facility (CWRF) will
provide a peak supply of 4.00 mgd and the expansion of the Meadowlark Water Reclamation Plant
(MWRP) will provide an additional peak supply of 1.00 mgd. In future phases of the Program, the
production of the CWRF will be expanded in 4 mgd increments to a maximum of 16 mgd. Additional
Project components include extension of the existing recycled water distribution system by
approximately 24 miles to serve new users, construction of three pumping stations, and improvements
of the existing Mahr Reservoir to maintain the quality of the recycled water stored in the reservoir.
Section 1. Definitions
Recycled Water: is treated wastewater that is subject to water quality standards and regulatory agency
oversight and approval, and is usable for designated non-potable, beneficial uses such as landscape and
agricultural irrigation, industrial processes, and commercial applications.
Project: means the Project for production and/or delivery of Recycled Water, developed under this
Agreement, as described in Exhibit A.
Agency: is the public agency that owns and operates, or proposes to own and operate, the Project. The
Agency may or may not be a member agency of the Water Authority.
Project Sponsor: is the member agency of the Water Authority whose service area is served by the
Project.
End User: is each of the ultimate users that purchase the Recycled Water produced by the Project.
Beneficial Use: means the use of Recycled Water supplied by the Project and utilized by an End User
that provides benefit to the region. These benefits include, but are not limited to, landscape irrigation
for parks, campgrounds, golf courses, freeway medians, community greenbelts, school athletic fields;
irrigation for agricultural food crops and nursery stock; recreational and aesthetic enjoyment associated
with the replenishment of lakes, ponds and ornamental fountains; dust control at construction sites;
makeup water for cooling tower use; and other industrial and commercial purposes.
Recycled Water Rate: means the rate used to calculate revenues from recycled water sales. If the
Agency is a retail water agency, the Recycled Water Rate is the higher of: 1) Agency's recycled water
rate(s) for sales to End Users; or 2) eighty-five percent (85%) of the lowest applicable potable water
rate of the Agency for the End User served by the Project. A participating retail water agency has the
prerogative to charge its customers less than eighty-five percent (85%) of the lowest applicable potable
water rate of the Agency for the End User served by the Project. However, the Agency will continue to be
analyzed on the basis of charging eighty-five (85%) of the lowest applicable potable water rate of the
Agency for the End User served by the Project for LWSD Program incentive calculation purposes. If the
Agency is not a retail water agency, the Recycled Water Rate is the higher of the Agency's rate for each
class of recycled water service, or 85% of the Project Sponsor's rate for each equivalent class of
potable water service. An agency that is not a retail water agency has the prerogative to charge its
customers less than eighty-five percent (85%) of the Project Sponsor's rate for each equivalent class of
potable water service. However, the non-retail agency will continue to be analyzed on the basis of
charging eighty-five (85%) of the Project Sponsor's rate for each equivalent class of potable water
service for LWSD Program incentive calculation purposes. For purposes of this definition, applicable
potable water rate shall mean the commodity charge for the class of service associated with the End
User being served by the Project.
Allowable Project Yield: means the actual amount of recycled water, measured in acre-feet, which is
sold and delivered to the End Users by the Project in any given year, and which is used within the Water
Authority's service area. Allowable Project Yield (Yield) shall exclude any non-revenue generating
Recycled Water, which is used within the wastewater treatment/water recycling plant property for on-
site plant uses such as, filter backwash, cooling, process water, wash-down, including landscape
irrigation and other uses that will not reduce a demand for potable water from the Water Authority, as
these uses would not have existed without the existence of the wastewater/water recycling plant and the
requirement to comply with wastewater discharge permits. Yield shall also exclude any potable water
used to supplement or replace the Recycled Water provided to the End Users. If an Agency determines
that Yield delivered to any End User will not result in the collection of revenue, the Agency will calculate
the cost per AF value of that Yield at the rate generally charged to customers of the recycled water system
but in no event less than 85% of the lowest applicable potable water rate for End Users served. The
Agency will clearly track and report this Yield on a monthly billing basis. This Yield will be used in the
calculation of revenue to annually determine the Water Authority's LWSD Program incentive
contribution.
Project Revenues: means revenues from recycled water sales, plus any other revenues, which offset the
costs of recycled water production or distribution. These additional revenues may include
Metropolitan Water District of Southern California (Metropolitan) incentives (such as Local Resources
Program incentives), federal and state grants, contributions from other agencies, connection fees,
capacity charges, meter charges, special assessments, interest earnings on debt service reserves, and tax
revenues.
Project Costs: means the actual Project cost to produce an acre-foot of Recycled Water beneficially
reused by Project End Users and is comprised of three components: Annualized Capital Costs,
Annualized Operation and Maintenance (O&M) Costs and Annualized Replacement Costs. Project
Costs exclude the cost of existing facilities, the cost of those Project components necessary to meet
National Pollutant Discharge Elimination Permit (NPDES) and Waste Discharge Permit requirements,
the costs of primary and secondary treatment facilities, and the cost of those Project components
funded by grants or contributions from private or public agencies. Project Costs may include costs
incurred by Agency for the retrofitting of private water systems to the extent necessary to permit the
attainment of Yield.
Capital Cost Values: means the actual cost of the development of the tertiary water treatment facility,
the distribution system, and the debt service associated with the construction of these facilities.
Contribution Rate: means the current per acre-foot of Yield determined and paid in accordance with
Section 3.
LWSD Program: means the San Diego County Water Authority's Local Water Supply Development
Program.
Section 2. Development and Operation of the Project
2.1 Elements of Project: The Project shall include all or a portion of the following
elements: production, transmission, distribution, metering, storage, pumping and other facilities
necessary for the storage and delivery of Recycled Water, as described in the "Project Description,"
attached hereto as Exhibit A and by reference made a part of this Agreement.
2.2 Firm Source of Water: Agency warrants that it has a firm source of wastewater to produce
Recycled Water to operate the Project described herein.
2.3 Authority Over Sewer Service: Agency warrants that it has the authority to provide
sewer, water or other services as necessary to carry out the Project, or has a contract with the provider
of sewer, water, or other service, in areas tributary to the Project, to obtain effluent from which
Recycled Water will be produced. Agency further warrants that the residences, businesses, and
industries in the area in which Recycled Water will be used are required to discharge their wastewater
to the local collection system for subsequent treatment.
2.4 Right to Sell Water: Agency warrants that it is able and has a right to sell Yield
produced by the Project.
2.5 Planning, Design, and Construction Costs: Agency shall be solely responsible for the
planning, design, environmental proceedings and compliance, right-of-way acquisitions, permits,
construction and any capital costs of the Project or any modifications thereof. The Water Authority
shall have no responsibilities, obligations or liabilities regarding the planning, design, environmental
proceedings and compliance, right-of-way acquisitions, permits, or construction of the Project or any
modifications thereof; nor shall Water Authority be responsible for any capital costs of the Project.
2.6 Owner of Project: Agency shall be designated as the sole and exclusive owner of all
Project facilities, except for those portions, if any, constituting a portion of the Water Authority's
distribution system or installed within the boundaries of End Users' properties. Water Authority shall
have no ownership right, title, security interest, or other interest in any Project facilities, nor any rights,
duties, or responsibilities for operation and maintenance thereof. The sole obligation of the Water
Authority shall be to pay the Contribution Rate for the Yield generated by the Project.
2.7 Operation of Project: Agency shall be solely responsible for the operation and
maintenance of all components of the Project, including providing or obtaining an adequate wastewater
supply and distributing and delivering Recycled Water to each End User's meter.
2.8 Meters: Metering devices shall be installed and owned, operated and maintained by
Agency for the purpose of measuring Yield. Each meter shall be read in accordance with the Agency's
regular billing cycle for purposes of billing and accounting between the Parties to determine at the
beginning of each billing cycle the quantity of Recycled Water billed to End Users during the
preceding billing cycle.
If the Agency's customer is a Wholesale Customers), Agency will ensure metering devices shall be
installed and owned, operated and maintained by the Wholesale Customer(s) for the purpose of
measuring Project Yield from their respective End-users. The Agency meter, that supplies the recycled
water to the Wholesale Customer, will be the meter that will be used to measure eligible Agency
Project Yield.
Agency shall install metering devices at the Recycled Water storage reservoirs or water reclamation
plant(s) to determine the quantity of raw or potable water, if any, that was blended with Recycled
Water and delivered to End Users during each billing cycle. The Agency will be responsible for
ensuring that all metering devices are properly installed, calibrated, and maintained. The Agency shall
be solely responsible for the accuracy of the meter readings. The Water Authority reserves the right to
review the meter readings and may request independent meter accuracy testing. The costs of any
independent meter test will be divided equally between the Water Authority and the Agency.
2.9 Maintenance of Project: Agency agrees to properly operate, maintain, replace as
necessary, and inspect the facilities comprising the Project, regularly and in accordance with all
applicable state and federal laws, rules, regulations, and guidelines for the term of this Agreement.
2.10 Operating Principles: Agency agrees, at all times during the term of this Agreement, to
use its best efforts to operate the Project facilities in accordance with generally accepted professional
standards and maintenance and operation principles and in such manner as to provide service to
existing and future End Users on a fair and equitable basis.
2.11 Staffing: Agency shall provide sufficient qualified personnel to properly operate and
maintain the Project facilities. Such personnel shall meet applicable certification requirements of
pertinent regulatory agencies.
2.12 Compliance with Regulatory Requirements and Laws: Agency shall ensure, either
directly or by contract with End Users, that all Recycled Water produced and delivered by the Project is
used in compliance with all applicable federal, state and local statutes, ordinances, regulations and
other requirements, and shall further ensure that connections to the Recycled Water system are properly
designed and constructed. Additionally, the Agency must demonstrate that appropriate regulatory and
public health permits have been, or will be, obtained.
2.13 California Environmental Quality Act: Agency shall ensure that the Project complies
with the provisions of the California Environmental Quality Act (CEQA). The Water Authority shall not
be obligated to make any payments for Yield from any component of a Project that does not comply with
CEQA requirements.
Section 3. Calculation of Contribution Rate and Method of Payment:
The following conditions govern the calculation of the Contribution Rate and the payment of
incentives:
3.1 Agreement Term: The term of the Agreement will be from October 1992 and ends on
September 2018; or until the Project no longer qualifies to receive LWSD Program incentives. If the
Project does not demonstrate a financial need in any given year, then funding will not be allocated for
that specific year.
3.2 Maximum Contribution Rate: The Maximum Contribution Rate is currently set at $200
per acre-foot of Yield. The Maximum Contribution Rate may be adjusted periodically by the Water
Authority Board of Directors. The Water Authority shall pay to Agency the Contribution Rate for
Yield supplied by the Project, unless agreed otherwise in writing. The Water Authority shall not be
obligated to make a contribution for Yield in excess of 5,000 acre-feet in any one Water Authority
fiscal year, nor shall Water Authority be obligated to contribute for any Recycled Water in advance of
its delivery to End Users.
3.3 Contribution Rate: The Contribution Rate for an acre-foot of Yield will be established
annually by the Water Authority for each Project deemed eligible for LWSD Program incentives. The
Contribution Rate will be determined based on the specific financial need of the Project and may be
less than the Maximum Contribution Rate.
3.4 Calculation of Contribution Rate: At the end of each fiscal year, the Water Authority
will conduct a financial review of the Project to determine the Project's cumulative net balance, (i.e.,
the difference between cumulative Project Revenues and cumulative Project Costs, for the coming
fiscal year). The Project will be eligible to receive Contribution Rate disbursements if the cumulative
net balance for the coming fiscal year is projected to be less than zero (i.e. if cumulative Project Costs
exceed cumulative Project Revenues). The Contribution Rate disbursements for a Project will be
established in such a manner as to maintain a cumulative Project balance of $0, provided, however, that
the Contribution Rate may not exceed the Maximum Contribution Rate. The Water Authority will
include an allowance for its foregone interest earnings in the calculation of the Project's cumulative net
balance.
3.5 Addition of Earnings/Cost of Funds to Cumulative Net Balance: For the purpose of
computing the Cumulative Net Balance in any given fiscal year, there shall be added to Project Costs
the annual cost of funds to the Agency for carrying any negative Cumulative Net Balance from the first
day of the fiscal year the Project begins deliveries of Recycled Water to an End User through the last
day of the fiscal year under consideration. For the purpose of computing the Cumulative Net Balance
in any given fiscal year, there shall be added to Project Revenues the estimated earnings of the Agency
on any positive Cumulative Net Balance from the first day of the fiscal year the Project begins
deliveries of Recycled Water to an End user through the last day of the fiscal year under consideration.
See the following example:
Project Revenue
Project Cost
Balance
Cumulative Net Balance . -,
Cost of Funds/
Interest Adjustment*
Adjusted Cumulative Net
Balance
First Year
Delivery
$100
$500
($400) .
1 3, «';.
($400) "W'
($20)
($420)
of Second Year of
Delivery
$400
}&
$500 4
,\^108K\V-- '
($520)
($26)
($546)
Third Year
of Delivery
$1,200
5 ^3v/ii/ *
**!, •• Jf J
4 $700
$154
$8
$162
* Assumes 5% of Cumulative Net Balance
3.6 Return of Excess Contributions: In the event that the Project has a positive cumulative
net balance at the end of any fiscal year, the Agency will return to the Water Authority the amount of
any contributions made during that year so as to achieve a cumulative net balance of $0. The policy of
the Water Authority is not to provide contributions for projects that can maintain a positive cumulative
net balance without a Water Authority contribution.
3.7 Method of Invoicing and Payment: The Agency shall invoice the Water Authority
monthly for the Yield, based upon the quantities billed to End Users during the previous month.
Billings shall be based upon meter readings at each and every connection of the Project to an End User.
Contribution Rate disbursements will be paid monthly based on the actual Yield during the previous
billing cycle and the Actual Contribution Rate for the Project. Incentives to the member agencies will
be provided in the form of a credit on their monthly Statement of Water Deliveries and Charges. If the
Agency receiving the credit is not a Water Authority member agency, a reimbursement check will be
issued directly to the Agency by the Water Authority.
3.8 Financial Assistance Program (FAP) Reimbursement: If applicable, the Agency must
reimburse the Water Authority for any funds received under the Financial Assistance Program (FAP) in
accordance with FAP guidelines. Any FAP reimbursements owed the Water Authority may be
deducted from the Agency's monthly LWSD Program incentive payments.
3.9 Eligible Project Costs:
"Annualized Capital Costs" shall be computed using only the following incurred costs by the Agency
for the Project:
• Design and construction management service fees.
• Planning, design, and construction costs of the Project facilities; these costs may include a
recycled water distribution system of varying diameter recycled water pipeline, pump
stations, and storage facilities. The tertiary treatment facilities shall not be used for
wastewater disposal purposes.
• Agency administration of the Project planning, design, construction, and start-up costs.
These costs represent a reasonable overhead allocation that must be agreed upon with the
Water Authority.
• Land, right-of-way and easements for the Project and Recycled Water system facilities.
• Environmental documentation and mitigation measures directly related to the
implementation or operation of the Project and required to comply with applicable
environmental permits and laws, including but not limited to the California Environmental
Quality Act, National Environmental Policy Act, and the California and Federal Endangered
Species Acts. Environmental documentation costs shall commence with the Notice of
Preparation and conclude with the filing of the Notice of Determination.
• Annual debt service expense.
• All other costs not specified in the above section shall be excluded, unless previously
approved by the Water Authority.
• All contributions (e.g. Metropolitan and Water Authority incentives, grants, fees, charges,
etc.) shall be offset "or netted" against the capital cost values for the purpose of computing
the Annualized Capital Costs component.
"Operation and Maintenance Costs" for the applicable fiscal year shall be computed using only the
following incurred costs by the Agency for the Project:
• Professional consulting service fees for Project operation, maintenance and audit.
• Agency labor costs and/or contract costs (rate based on current market rate).
• Chemicals and supplies for the Project operation and maintenance.
• Net electrical energy (recovery energy shall be deducted from energy purchased) for
eligible facilities and distribution system operations. The Water Authority shall not pay
for electrical energy costs if the Agency fails to install metering devices.
• Contractor services and supplies for Project facilities, operation and maintenance, and
repair to maintain reliable system operation and achieve regulatory compliance.
• Monitoring required by permits, including water quality sampling and analysis of
Recycled Water produced by the Project.
• All other costs not specified in the above section shall be excluded, unless previously
approved by the Water Authority.
• All contributions shall be offset against operating cost values for the purpose of
computing the Operation and Maintenance Costs component.
/
"Replacement Costs" shall be computed on the following basis:
• Cost estimates for replacement of major Project parts exceeding $100,000, will be
subject to internal Water Authority staff review to determine the reasonableness of the
submitted cost estimate.
• Project parts identified for replacement will have met or exceeded average lifecycles for
that identified replacement part.
• Salvage value of replaced parts shall be offset against replacement costs.
• All contributions shall be offset against replacement cost values for the purpose of
computing the Replacement Costs component.
• All other costs not specified in the section above shall be excluded, unless previously
approved by the Water Authority.
Note: The Water Authority may request explanations or a review of the detailed costs included
in the Agency's submittal of eligible costs, however, the Water Authority's determination as to
the validity of the costs is final.
3.10 Eligible Project Revenues; "Annual Revenue Sources " shall consist, but not be limited
to, the following sources:
• Revenues from Recycled Water sales, plus any other revenues, which offset the costs of
Recycled Water production or distribution.
• Metropolitan Local Resources Program (LRP) incentives.
• Federal and state grants awarded to an Agency's program.
• Agency connection fees, capacity charges, meter charges, special assessments, and tax
revenues.
• Interest earnings on debt service.
• All other revenues not specified in the above section, but obtained after the first fiscal
year of operation, shall be included in the total revenue calculation of each subsequent
fiscal year.
3.11 Annual Review: The Water Authority will conduct an annual review of Eligible Project
Costs and Project Revenues to determine the Contribution Rate for the Project. The Water Authority
will send the appropriate reporting forms to the Agency by November 1st of each year which will
require providing estimated Project Costs and Revenues for the current and upcoming fiscal year. The
Water Agency will also provide actual Project Costs and Revenues from the prior fiscal year. These
forms must be submitted to the Water Authority by January 31 st of each year. For the purpose of
projecting future year costs, inflation factors and interest rates will be determined by the Water
Authority.
The Water Authority (or its authorized agent) shall have the right to physically examine the accounting
and Project records of the Agency to verify Project Costs and Project Revenues no less than every three
years and will require an independent audit of those records. The Agency will submit all requested
materials to the Water Authority no later than three weeks from the date of the initial request.
Notwithstanding the formula described above, the Contribution Rate for any year may be adjusted: (a)
to reflect the results of any review/audit by the Water Authority of the actual Project Costs and Project
Revenue during previous Project operation years; and (b) to reduce the Contribution Rate by an amount
equal to the Agency's obligation to repay any sum owed to the Water Authority under the Financial
Assistance Program (FAP) for reclamation planning studies for this Project or any other Agency
projects.
Section 4. Record Keeping
The Agency shall establish and maintain accounting records of all revenue sources received and costs
incurred for the construction, operation and maintenance, and replacement of parts for the Project as
described in Section 3.9 - Eligible Project Costs, and Section 3.10 - Eligible Project Revenues.
Accounting for the Project shall utilize generally accepted accounting principles and be consistent with
the terms of this Agreement.
The Agency's Project accounting records must clearly distinguish all costs for the Project from the
Agency's other water production, treatment, and distribution costs. These records shall also be
adequate to determine Recycled Water and Yield in order to accomplish all cost calculations
contemplated within the context of the Project.
The Agency shall establish and maintain accounting records of all contributions including grants that
offset "Eligible Project Costs."
The Agency shall collect Recycled Water and Yield data for each fiscal year of the Project and retain
records of that data based on metering requirements. In addition, the Agency shall collect and retain
records of the total annual amount of water conveyed outside the Agency's service area using Project
facilities. The Agency shall keep all Project records for at least three years following the termination of
this Project Agreement.
The Water Authority shall have the right to audit Recycled Water and Yield data relevant to the terms
of any Agreement entered into for a period of three fiscal years following termination of the Project
Agreement. The Water Authority may elect to have such reviews/audits conducted by its staff or by
others, including independent accountants or engineers, as designated by the Water Authority. The
Agency shall make available for inspection to the Water Authority or its designee, upon 30 days
written notice, all records, books and other documents related to the determination of Project Yield.
Based on the results of any independent review or audit, an adjustment for over or underpayment of
Project Yield for each applicable fiscal year shall be paid by the Water Authority or the Agency within
one year of determination after such adjustment. The costs of any independent review or audit shall be
equally divided between the parties.
Section 5. Performance Provisions
The Water Authority reserves the right to terminate the Project if construction has not commenced or
the Allowable Yield is not delivered by a mutually agreed upon date (subject to bi-annual review). The
Water Authority, after consultation with Agency, may reduce its Contribution Rate by a factor equal to
the percentage shortfall of the actual Allowable Project Yield to the Agency's projected targeted
Allowable Project Yield or in some other manner that reflects the realistically attainable Yield for the
Project.
Section 6. Term and Amendments
The term of the Agreement shall be for twenty-five (25) years from the date the Project commenced
delivery of Recycled Water to an End User, unless agreed to otherwise, hi the event that for any year
the Contribution Rate equals more than zero, the Agreement shall not be terminated, and no funds shall
be owed to the Agency by the Water Authority.
In the event of an Agreement breach, the Water Authority reserves the right to cease advancing current
and future funds and may seek reimbursement for previously advanced funds. Additionally, the breach
may prohibit the Agency from participating in any future cooperative Agreements with the Water
Authority.
The Agreement may be modified through bilateral agreement between the parties. Any modifications
made to the Agreement shall be confirmed in writing prior to performance of the change.
Section 7. Indemnity - Hold Harmless
The Agency agrees to defend, indemnify, and hold harmless the Water Authority, its officers, and
employees, from all damage, injury, claims, demands, losses, and liability to the extent that the same
are the result of Agency conducting the Project, or the negligence or willful misconduct of the Agency
or any of its officers, employees or any other person acting pursuant to its control in performing the
work under this agreement.
Section 8. Laws and Venue
This Agreement shall be interpreted in accordance with the laws of the state of California. If any
action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a
state or federal court in San Diego County.
10
Section 9. Assignment
The Agency shall not assign, sublet, or transfer this agreement or any rights or interest in this
Agreement without the written consent of the Water Authority, which may be withheld for any reason.
Section 10. Integration
This Agreement represents the entire understanding of the Water Authority and the Agency as to those
matters contained herein. No prior oral or written understanding should be of any force or effect with
respect to those matters covered hereunder. This Agreement may not be modified or altered except in
writing signed by the Water Authority and the Agency.
Section 11. Notice
Any notice or instrument required to be given or delivered by this Agreement may be given or
delivered by depositing the same in any United States Post Office, registered or certified, postage
prepaid, addressed to:
If to Water Authority:
If to Agency:
San Diego County Water Authority
4677 Overland Avenue
San Diego, CA 92123
Attn: Ken Weinberg
Director of Water Resources
Carlsbad Municipal Water District
5950 El Camino Real
Carlsbad, CA 92008
Attn: Mark Stone
General Manager
11
Section 12: Signatures
The individuals executing this Agreement represent and warrant that they have the legal capacity and
authority to do so on behalf of their respective legal entities.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written
above:
SAN DIEGO COUNTY WATER AUTHORITY Approved as to form and legality:
By:.
Ken Weinberg
Director of Water Resources
By:
Daniel S. Hent^cjke
General Counsel
CARLSBAD MUNICIPAL WATER DISTRICT Approved as to form and legality:
By:.
Claude
President
Ronald R. Ball, General Qounsel
ATTEST:
rraine M. Wood
Secretary to Board
12
EXHIBIT A
CARLSBAD MUNICIPAL WATER DISTRICT
LOCAL WATER SUPPLY DEVELOPMENT (LWSD) PROGRAM APPLICATION
ENCINA BASIN WATER RECLAMATION PROGRAM,
PHASE I AND II PROJECTS
APRIL 2008
PROJECT FACT SHEET
PROJECT NAME: Encina Basin Water Reclamation Program, Phase I and H Projects
PROJECT LOCATION: City of Carlsbad
PROJECT SPONSOR (CWA MEMBER AGENCY): Carlsbad Municipal Water District
PROJECT OWNERS: Carlsbad Municipal Water District
CONTACT PERSON: William Plummer
TELEPHONE: (760) 602-2768
MAILING ADDRESS: 1635 Faraday Avenue, Carlsbad, CA 92008
ESTIMATED DATE PROJECT BEGAN DELIVERIES: July 2004 for Phase H
MAXIMUM YIELD (ACRE FEET PER YEAR): Phase I and Phase H combined yield = 5,000
AFY
13
CARLSBAD MUNICIPAL WATER DISTRICT
LOCAL WATER SUPPLY DEVELOPMENT (LWSD) PROGRAM APPLICATION
ENCINA BASIN WATER RECLAMATION PROGRAM
PHASE I AND II PROJECTS
APRIL 2008
ENGINEERING REPORT
INTRODUCTION
The Carlsbad Municipal Water District (CMWD) has the responsibility for water supply
and distribution to a majority of the City of Carlsbad. The CMWD service area is shown on Figure 1-1.
Two other water districts also provide potable water service to a small area of the City. The Vallecitos
Water District (VWD) provides potable water to a small area at the east end of Alga Road. The
Olivenhain Municipal Water District (OMWD) provides potable water service in the southeast corner
of the City, generally along Rancho Santa Fe Road and Olivenhain Road. CMWD, VWD, and OMWD
are all currently 100% dependent on imported water to meet potable water demands in Carlsbad.
The CMWD receives 100% of its potable water supply as treated water, delivered by the San Diego
County Water Authority (SDCWA) through the San Diego Second Aqueduct. In Fiscal Year 2006-
2007, the total water consumption averaged 21.5 mgd on an annual average basis. The projected
average annual water demand for buildout is 23.9 mgd.
Because of its complete dependence on imported water, CMWD faced the prospect of 50% cutbacks in
its water supply during the last drought. As a result of that experience, the CMWD is committed to
developing a larger more diversified local water resource component. The expanded use of recycled
water is planned to decrease the reliance on imported water.
The Encina Basin Water Reclamation Program was developed by the CMWD as a multi-phased
approach to implement a water recycling program. By 1994, Phase I of a five-phase master plan
program had been implemented. Recycled water use within the CMWD service area currently totals
approximately 2575 acre-feet per year (afy) for Fiscal Year 2006-2007 from a total of 342 meters (refer
to Appendix "A"). This recycled water demand represented 10.7 percent of CMWD's total water
demand.
In addition to the existing Phase I recycled water users, more than 319 potential recycled water use
customers have been identified within the City. To serve the additional customers, CMWD
implemented Phase II of the Master Plan. Phase n will provide an additional 5 mgd of recycled water
treatment capacity to meet a demand of 3,000 afy.
In anticipation of the implementation of the Phase n project, the CMWD has been requiring developers
to install recycled water pipelines within their developments to use recycled water for irrigation. The
ultimate Encina Basin Reclamation Program is projected to have a demand of approximately 9,800 afy
of recycled water at buildout of the City.
14
PROJECT WATER SUPPLY
The local resources available to the CMWD were evaluated in its 1997 Water Resources Master Plan.
The local water resources include recycled water, groundwater, surface water, seawater desalinization,
conservation, and joint projects with adjacent agencies. These water resource opportunities were
analyzed and compared with respect to cost, potential resource size, water quality with respect to total
dissolved solids (TDS), environmental impacts, and reliability.
The 1997 Water Reservoir Master Plan incorporated an optimum mix of imported, recycled water, and
local potable water resources. The optimum mix of resources was selected based on the anticipated
reliability of imported sources weighted against the cost to develop local sources to achieve higher
levels of reliability. The target mix of water resources for the CMWD, as developed in the 1997
Water Resources Master Plan, together with updated information from the 2003 Water Master Plan, is
summarized for average, annual, and peak day conditions on Table 1.
TABLE 1
TARGET WATER SUPPLY MIX FOR 2020
CMWD WATER RESOURCES MASTER PLAN
Item
Phase I Reclamation
Phase n Reclamation
Seawater Desalination
Local Supply Subtotal
Imported
TOTAL
Average Annual
Demand (mgd)
1.27
2.73
3.23
7.23
16.67
23.9
Percent
Average
Peak Day
Demand (mgd)
5%
11%
14%
30%
70%
100%
2.75
5.25
5.00
13.00
26.4
39.4
Percent
Peak Day
7%
13%
13%
33%
67%
100%
As noted in Table 1, the CMWD's water supply mix includes recycled water, and desalination of
seawater. Phase I of the recycled water program began in 1993 and was based on economically
utilizing existing sources of recycled water. The Phase n project increases the peak supply of recycled
water from 3 mgd to 8 mgd. This increase will reduce the demand for treated water from the
Metropolitan Water District's Skinner Filtration Plant. During the peak summer months, the demand
on the Skinner Filtration Plant will be reduced by 5 mgd.
The major elements of the Encina Basin Water Reclamation Program are the construction of the
Carlsbad Water Recycling Facility and the expansion of the Meadowlark Water Recycling Plant.
Initially the Carlsbad Water Recycling Facility (CWRF) will provide a peak supply of 4.00 mgd and
the expansion of the Meadowlark Water Reclamation Plant (MWRP) will provide an additional peak
supply of 1.00 mgd. In future phases of the Program, the production of the CWRF will be expanded in
4 mgd increments to a maximum of 16 mgd. Additional Project components include extension of the
existing Recycled Water distribution system by approximately 24 miles to serve new users,
construction of three pumping stations, and improvements of the existing Mahr Reservoir to maintain
the quality of the recycled water stored in the reservoir.
15
USER IDENTIFICATION
The Phase II project will serve irrigation demands that are currently being served through treated water
delivery from the MWD. The majority of the demand for recycled water is for landscape irrigation at
various golf courses, parks, schools, and residential areas throughout the CMWD service area.
Historical monthly recycled water demands are summarized in a Table in Appendix "B".
The existing and potential recycled water users were identified in the 1997 CMWD Recycled Water
Master Plan. The identified customers for the Phase n project are described in Appendix "C". Most of
the Phase n users are located adjacent to existing recycled water pipelines. Many of the identified
Phase n customers have already been approved for recycled water use and the distribution pipelines
exist. These customers are referred to as "conversions" and can begin receiving recycled water as soon
as the additional supply is available and cross-connection testing at each site is completed. Another
class of customers are referred to as "retrofits". These sites, although already existing, require the
preparation of drawings showing how the irrigation system will be retrofitted to use recycled water.
Upon approval of the drawing by San Diego County Department of Environmental Health, the
irrigation system must then be modified at the expense of the property owner to use recycled water. As
shown on Table 3, it is estimated that as much as 2,000 afy of additional demand is ready to use
recycled water from existing conversion and retrofit sites.
The CMWD adopted Ordinance No. 31 in 1990, which mandates the use of recycled water. With this
ordinance, the District made it a policy that reclaimed water be used wherever its use is economically
justified, financially and technically feasible and consistent with legal requirements, preservation of
public health, safety, and welfare and the environment. Ordinance No. 31 was updated in 2005 and has
been replaced by Ordinance No. 43. As a result of this policy, all new development is reviewed to
determine if it is feasible to require the use of recycled water for commercial, industrial, open space,
golf course, landscape irrigation, agricultural purposes and construction purposes. In addition to the
traditional uses as noted above, the CMWD maybe able to take advantage of the extensive
transmission and distribution system that is being installed as a result of the CMWD ordinance and
City policy, to venture into more innovative reuse applications in the future. For example plans for the
City's new Alga Norte Community Park include dual plumbing for restrooms, and NRG plans to
construct a new electrical power plant which will use recycled water for its cooling system.
The existing Meadowlark Water Reclamation Plant (MWRP) is already permitted for production of
recycled water meeting Title 22 requirements for unrestricted reuse. This permit was amended for the
additional production of up to 5.0 mgd where CMWD, by agreement with VWD, is entitled to receive
up to 3 mgd. The plant expansion is nearing completion, scheduled for Fall 2007.
The CMWD currently has a permit for the distribution of recycled water within the City of Carlsbad. A
Waste Discharge Permit has been obtained for the new Carlsbad Water Recycling Facility. The CWRF
utilizes granular media filtration, microfiltration, reverse osmosis and chlorination to provide the
tertiary treatment processes needed for reclamation. The reverse osmosis facilities are being included to
ensure that the customer water quality requirement, which is less than 1,000 mg/1 TDS, can be met
regardless of the quality of the source water. The reverse osmosis facilities will allow the plant to
operate during extreme drought conditions and to help to keep the salt buildup in the basin to a
minimum.
16
PROJECT FACILITIES
The major elements of the Phase I project include the Meadowlark WRP, the Gaffher WRP, two 1.25
MG storage tanks located at the intersection of Poinsettia Lane and Black Rail Road, a pump station
located along El Camino Real, and various pipelines. The Gaffner WRP delivers water to the La Costa
Golf Course for irrigation water. The Meadowlark WRP delivers water to the two storage tanks via the
pump station located just east of El Camino Real along the outfall line from the plant. The recycled
water from the storage tanks is then delivered via gravity to users such as the Aviara Golf Course, and
Legoland.
To identify the Phase n project, ten recycled water alternatives were developed and analyzed as part of
the Recycled Water Master Plan prepared in 1997. The selected Phase n project increases recycled
water deliveries from a current production of approximately 2,000 afy to 5,000 afy. The major elements
of the Phase n Project are as follows:
1. Construction of an expansion at the Meadowlark WRP, increasing the recycled water
production capacity from 2 mgd to 5 mgd, with CMWD entitled to receive up to 3 mgd.
2. Construction of the new CWRF to the south of the existing Encina Water Pollution Control
Facility. The initial production capacity of the CWRF is 4.0 mgd.
3. Construct three new Recycled Water Pump Stations.
4. Improvements to the existing Mahr Reservoir to maintain the quality of the recycled water
stored in the reservoir consisting of:
• Modified Reservoir Inlet/Outlet Works
• Aeration/Destratification System and Operations Building
• Miscellaneous Site Work
5. Construct approximately 24 miles of new recycled water pipelines ranging in size from 4 inches
to 30 inches. Many of the Phase II distribution pipelines have been constructed in conjunction
with development. At present, it is estimated that there are a total of approximately 80 miles of
recycled water pipelines in CMWD's distribution system.
Major elements of the Phase II project, along with the existing facilities, are shown on the Phase II
Project Map enclosed in Appendix "D".
POTENTIAL FINANCIAL SOURCES
The strategy for financing the Phase n project is similar to the strategy used to successfully finance the
Phase I project. The current estimated cost for the development, design, and construction of the Phase
n project is $50 million. The funding of the Phase II project is from a combination of Local funds, a
State Water Resource Control Board (SWRCB) loan and grant, an Environmental Protection Agency
grant, and a U.S. Bureau of Reclamation grant. The anticipated funding for operational costs and loan
repayment is from local water rates in combination with rebates from the Metropolitan Water District
(MWD) and the San Diego County Water Authority (SDCWA).
17
The local funding for the Phase n project consists of a $6.5 million dollar appropriation from the
CMWD's Water Capital Fund. This funding is being used for project development and design prior to
receiving funding from the other sources.
The loan from the SWRCB will be from the 1994 and 1996/2000 Water Recycling subaccounts. In
December 2000, the CMWD applied for a $32 million loan from the State Revolving Fund (SRF) Loan
Program, and $5 million grant available through the Water Reclamation Program. The grant is limited
to 25% of the project costs with a $5 million dollar cap. On January 23, 2002, the SWRCB approved a
$31.65 million loan and a $5 million dollar grant.
The federal government authorized a $20 million dollar (up to 25% of total capital cost) grant program
for the "North San Diego County Area Water Recycling Project". The grant is based on a $90.55
million dollar Project that includes separate projects to be constructed by the San Elijo Joint Powers
Authority, the Carlsbad Municipal Water District, the Olivenhain Municipal Water District, and the
Leucadia County Water District. Based on a Phase JJ project cost of $50 million dollars, the CMWD
could receive a grant of approximately $10 million dollars.
The CMWD was also approved to receive a grant of $2.2 million from the Environmental Protection
Agency for the microfiltration and reverse osmosis system at the CWRF.
To fund the operation costs and the loan repayments, the Phase II project is depending on the income
from recycled water sales, supplemented by rebates from the MWD and the SDCWA. The recycled
water is sold by the CMWD at a rate equal to 95% of the potable water rate. The current recycled water
rate is $1.60 per unit ($697 per acre foot). To supplement this cost, the CMWD is dependent on rebates
from the MWD and the SDCWA.
hi January 1993, the CMWD entered into agreements with both wholesale water agencies to provide
rebates for the Phase I project. The Phase I agreements provided rebates from the MWD that vary
depending on the actual expenses incurred each year and a rebate from the SDCWA of $100/af. hi July
2005, the SDCWA approved an increase to $147/af for their recycled water rebate. Retroactive
December 1, 2006, the rebate could increase to $200/af. On March 28, 2000, a new agreement with
MWD was executed that extends their rebate program to the Phase n project starting at $210/af. The
purpose of this application is to extend the $147/af rebate from the SDCWA to the Phase n project and
increase the rebate to $200/af. By providing these rebates, the cost to produce and distribute recycled
water is reduced by the total amount of rebate received, which is crucial to the financial viability of the
program. The worksheet that provides expenditure and revenue data for the project are attached as
Appendix "E".
IMPLEMENTATION SCHEDULE
The key milestones for the project include obtaining environmental clearance and permits, securing
financing, completing design, completing construction, and beginning the production and sales of
recycled water.
At this time, the environmental clearance for the overall project and the development permits for the
CWRF have been obtained. A Mitigated Negative Declaration for the Phase JJ project was approved by
18
the City Council on January 25, 2000. On August 15,2001, the Planning Commission approved a
Conditional Use Permit (CUP 99-23), and a Coastal Development Permit (CDP 99-45), for the
Carlsbad Water Recycling Facility. The Coastal Commission did not appeal the Coastal Development
Permit.
In regards to financing for the Phase n project, the CMWD has completed the following activities: 1)
On October 3,2000, the CMWD Board appropriated $4 million for the project; 2) The CMWD
submitted applications for the SRF loan program and the Water Reclamation Program Grant to the
State Water Resources Control Board (SWRCB). The loan and grant was approved on January 23,
2002; 3) The federal government authorized a $20 million dollar (up to 25% of total capital cost) grant
program for the "North San Diego County Area Water Recycling Project". In February 2001, the
Bureau of Reclamation approved the Feasibility Report for Phase n and completed a NEPA review of
the project; 4) On March 28,2000, the CMWD entered into an agreement with the MWD to provide a
rebate of $210/af; 5) The CMWD is currently applying for a rebate of $200/af from the SDCWA.
As noted above, the CMWD has entered into an agreement with the MWD. In addition to the rebate
amounts, this agreement contains several "performance provisions" which affect the project schedule.
The agreement requires construction of the project to begin by April 1,2002, the sale of at least 700 afy
beginning Fiscal Year 2004-05, and the production of recycled water at the new Carlsbad Water
Recycling Facility by April 1, 2006. To satisfy these requirements, various design and construction
projects were initiated. The design of the CWRF, which is a key component of the Phase n project, was
completed in January 2002. The construction of the transmission pipelines and pumping stations are
completed. The Carlsbad Water Recycling Facility is constructed and in operation. As noted
previously, there are also other distribution pipelines in place that will enable the CMWD to efficiently
connect customers to the Phase n supply and begin using recycled water.
19
APPENDIX "A"
FISCAL YEAR 2006-07
CMWD WATER CONSUMPTION
h:\excel\consumption report.xls 2006-07 CMWD Water Consumption
By Customer Classification
7/20/2007
I --w'.t^te»W- !^j£aB^Jd»*^ <^leiff^ki«NMr :;, , ^ June J.T«iBi*«feof Total # Meters
Agriculture (includes Ag w/house & Ag rebate)
Units 25,713 32,602
Acre Feet 59.0 74.8
Million Gallons 19.23 24.39
49,407
113.4
36.96
28,312
65.0
21.18
38,925
89.4
29.12
24,332
55.9
18.20
32,884
75.5
24.60
19,885
45.6
14.87
23,421
53.8
17.52
32,089
73.7
24.00
33,049
75.9
24.72
34,284
78.7
25.64
374,903
860.7
280
3.6% 38
Commercial (includes Fire Protection & Temporary Potable meters)
Units 201,289 141,031
Acre Feet 462.1 323.8
Million Gallons 150.56 105.49
187,198
429.7
140.02
163,143
374.5
122.03
149,679
343.6
111.96
123,950
284.6
92.71
123,163
282.7
92.13
133,917
307.4
100.17
112,426
258.1
84.09
139,243
319.7
104.15
133,007
305.3
99.49
152,842
350.9
114.33
1,760,888
4,042.4
1,317
16.8% 2,307
Institutional
Units 7,733 5,739
Acre Feet 17.8 13.2
Million Gallons 5.78 4.29
7,388
17.0
5.53
7,200
16.5
5.39
6,417
14.7
4.80
5,905
13.6
4.42
4,595
10.5
3.44
5,820
13.4
4.35
3,839
8.8
2.87
5,772
13.3
4.32
5,836
13.4
4.37
7,337
16.8
5.49
73,581
168.9
55
0.7% 71
Irrigation
Units 213,516 239,074
Acre Feet 490.2 548.8
Million Gallons 159.71 178.83
220,555
506.3
164.98
207,228
475.7
155.01
151,548
347.9
113.36
109,981
252.5
82.27
94,069
216.0
70.36
102,574
235.5
76.73
64,759
148.7
48.44
146,359
336.0
109.48
148,325
340.5
110.95
198,711
456.2
148.64
1,896,699
4,354.2
1,419
18.1% 1,049
Multi-Family (includes M, M1 & Duplex)
Units 97,766 66,705
Acre Feet 224.4 153.1
Million Gallons 73.13 49.90
89,420
205.3
66.89
70,267
161.3
52.56
72,978
167.5
54.59
74,292
170.6
55.57
68,543
157.4
51.27
65,299
149.9
48.84
59,207
135.9
44.29
74,392
170.8
55.65
70,490
161.8
52.73
78,901
181.1
59.02
888,260
2,039.2
664
8.5% 1,008
Recycled (includes Temporary Recycled meters)
Units 125,895 122,544
Acre Feet 289.0 281.3
Million Gallons 94.17 91.66
125,569
288.3
93.93
94,338
216.6
70.56
96,135
220.7
71.91
50,355
115.6
37.67
51,436
118.1
38.47
31,531
72.4
23.59
52,060
119.5
38.94
106,028
243.4
79.31
115,701
265.6
86.54
150,035
344.4
112.23
1,121,627
2,574.9
839
10.7% 342
Single-Family (includes Single with Fire meters)
Units 474,940 444,461
Acre Feet 1,090.3 1,020.3
Million Gallons 355.26 332.46
456,678
1,048.4
341 .60
360,543
827.7
269.69
370,434
850.4
277.08
327,789
752.5
245.19
295,366
678.1
220.93
287,838
660.8
215.30
234,712
538.8
175.56
352,887
810.1
263.96
345,357
792.8
258.33
420,061
964.3
314.21
4,371,066
10,034.6
3,270
41.7% 22,762
TOTAL (units) 1,146,852 1,052,156
TOTAL (acre feet) 2,632.8 2,415.4
TOTAL (mg) 857.85 787.01
1,136,215 931,031
2,608.4
849.89
2,137.4
696.41
886,116
2,034.2
662.81
716,604
1,645.1
536.02
670,056
1,538.2
501.20
646,864
1,485.0
483.85
550,424
1,263.6
411.72
856,770
1,966.9
640.86
851,765
1,955.4
637.12
1,042,171
2,392.5
779.54
10,487,024
24,074.9
7,844.29
100.0% 27,577
Key: Agriculture = AG+AH+AR Commercial = C+FP+TP Institutional = IN Irrigation = IR Multi-Family = D+M+M1 Recycled = RC Single Family = S*SF
APPENDIX "B"
HISTORICAL RECYCLED WATER USE
Carlsbad Municipal Water District
Historical Seasonal Recycled Water Use
January
February
March
April
May
June
July
August
September
October
November
December
Total
Average
1993
11.5
8.0
15.6
54.3
112.1
136.4
140.5
120.8
151.2
114.2
52.9
30.6
948.1
79.01
1994
42.9
25.4
21.7
36.0
64.1
107.9
118.5
150.7
180.2
88.6
69.3
38.7
944.0
78.67
1995
18.2
10.6
9.5
42.0
89.8
126.9
149.1
193.4
181.9
128.5
78.1
62.0
1,090.0
90.83
1996
33.9
12.1
16.7
89.4
152.5
223.4
198.2
203.0
158.0
130.2
29.8
10.9
1,258.1
704.84
1997
11.2
34.6
108.2
132.4
181.7
215.5
179.2
171.2
152.5
110.3
24.0
26.2
1,347.0
112.25
1998
14.2
22.3
50.9
90.7
161.2
228.6
191.6
208.3
158.6
103.8
33.2
68.3
1,331.7
110.98
1999
68.3
15.0
55.3
64.7
143.8
204.1
190.5
368.0
183.9
187.9
146.1
100.7
1,728.3
144.03
2000
136.3
56.9
17.1
166.2
142.2
254.0
278.6
248.3
207.2
177.5
91.9
106.7
1,882.9
156.91
2001
79.4
39.9
11.0
162.7
183.5
177.9
217.3
221.7
229.9
178.1
128.3
51.5
1,681.2
140.10
2002
48.3
77.7
100.7
104.4
160.4
277.8
200.8
235.2
160.9
194.1
109.5
65.3
1,735.1
744.59
2003
75.4
82.1
55.5
143.1
146.6
179.6
194.5
192.7
213.2
150.7
95.8
80.0
1,609.2
134.10
2004
60.8
57.4
67.0
168.0
188.7
246.6
259.7
240.8
229.6
199.5
35.0
68.9
1,822.0
75183
2005
47.5
18.0
28.2
167.7
225.3
213.0
267.8
304.4
217.0
225.0
89.9
162.6
1,966.4
163.87
2006
72.5
145.3
41.1
64.8
159.7
220.3
289.0
281.3
288.3
216.6
220.7
115.6
2,115.1
176.26
2007
118.1
72.4
119.5
243.4
265.6
344.4
_
_
_
_
_
-
1,163.4
96.95
Average
55.90
45.18
47.87
115.32
158.48
210.43
191.69
209.32
180.83
147.00
80.30
65.87
1,508.17
725.68
"Reclaimed water use reported in acre feet**
Consumption report (CURRENT).xls
APPENDIX "C"
PHASE II RECYCLED WATER
CUSTOMER CONNECTION SCHEDULE
Connection Schedule
A review was made of the potential yield from each use site. With this information
the following detailed breakdown by fiscal year is the proposed schedule to
connect use sites and meet the MWD annual target yields listed in Table 3:
TABLE 3
RECYCLED WATER YIELD PER FISCAL YEAR
Description
FY 2003-2004
New Developments - 2 Sites (availability of Operations' Staff need to coordinated with KurtMusser)
1 . Kelly Ranch Village E - Canterbury (completed in fall 2003)
2. Kelly Ranch Core Area (completed spring 2004)
NEW DEVELOPMENTS SUBTOTAL:
Conversions (none)
Retrofits (none)
FY 03-04 TOTAL:
FY 2004-2005
New Developments - 5 Sites (availability of Operations' Staff need to coordinated with KurtMusser)
1 . Villages of La Costa - The Greens, Streetscape only
2. Bressi Ranch, Streetscape only
3. Calavera Hills Village Y (construction to be completed 7/04)
4. Poinsettia Lane (Thompson Rose Property) - The Bay Collection
5. Aviara Park
Subtotal
Conversions - 16sites
Disconnect Vaults
1 . Ave. Encinas @ Embarcadero (260 HGL)
2. Poinsettia Cove (Catamaran/Channel Disconnect Vault)
Conversions along Industrial Park Pipelines (10 out of 96 meters)
Conversions along ECR between PAR and Cassia (4 out of 4 meters)
Subtotal
Retrofits (none)
FY 04-05 TOTAL:
Water Demand
(AFY)
10
216
226
0
0
. ;:p. * 220;", -. .:, .
92
50
22
85
4
253
38
26
40
23
127
0
'-••" 1380'. ....
FY 2005-2006
NSW Developments - 16 Sites (availability of Operations 'Staff need to coordinated with KurtMusser)
1. Villages of La Costa - The Greens
• Neighborhood 1.1 5 -Affordable Apartments
• Neighborhood 1 .08 - 82 residential units, 42.9 acres
• Neighborhood 1 .09 - 75 residential lots, 25.3 acres
• Neighborhood 1 .10 - 64 residential lots, 37.3 acres
« Neighborhood 1.11, 13, 14
• Neighborhood 1.12- detached homes
• Recreation Center
2. Bressi Ranch
• Bressi Ranch Affordable Condominiums (will be ready 2005-06)
• Village Green and Village Square (will be ready 2005-06)
• Bressi Ranch Residential (will be constructed 2005-07) (142.5 acre;
505 residential lots, 21 open space HA lots)
3. Villages of La Costa - The Ridges
• La Costa - The Ridges, Streetscape
• La Costa Ridge 2.1 and 2-89 acres, 93 single family lots and 15 open
space lots
• La Costa Ridge 2.3 and 2.4 - 63 acres, 104 single family lots, 9 open
space lots
• La Costa Ridge 2.5 - 66 single family lots, 7 open space lots
4. Poinsettia Lane (Tabata Property) - The Bay Collection
5. Foxes-Miller, Streetscape and common areas only
Subtotal
Conversions -18 sites
Disconnect Vaults
1 . Poinsettia Lane West of El Camino Real
2. Melrose/PAR
3. Carlsbad Village Drive/College Boulevard
4. El Fuerte N of Rancho Pancho
Conversions along Industrial Park Pipelines (14 out of 96 meters)
Subtotal
Retrofits - 3 sites
Calavera Park
Twin D Pipeline (9 meters) (Sea Gate, Carlsbad Crest)
Subtotal
FY 05-06 TOTAL:
280
120
50
120
180
25
775
13
438
132
17
55
655
26
62
88
*., :tM8
•«":"*' J$8JK.'V''"'r
.'.:
-
. * N - •» >$*jW*/*.** - <
' *!*', * *T *JJ V ,/*** ' •
FY 2006-2007
New Developments - 22 Sites (availability of Operations' Staff need to coordinated with Kurt Musset)
1 . Carlsbad Municipal Golf Course
2. Alga Norte Park
3. Bressi Ranch
• Areas 1-5 will allow 33 industrial lots (will be ready 2006-07)
Streetscape only
• Bressi Ranch Estates Residential (will be ready 2006-07) (25
residential lots, 4 open space)
4. Carlsbad Oaks North (23 lots)
5. Raceway Business Park (25 lots)
6. Foxes-Miller (2 out of 4 sites)
7. Palomar Forum (5 out of 1 0 lots)
Subtotal
Conversions - 24 sites
Conversions along Industrial Park Pipelines (24 out of 96 meters)
Subtotal
Retrofits- 10 sites
Retrofits along Industrial Park Pipeline (10 out of 79 meters)
Subtotal
FY 06-07 TOTAL:
384
15
40
57
5
6
30
537
95
95
43
43
.*v •• $15 "
FY 2007-2008
New Developments -24 Sites (availability of Operations' Staff need to coordinated with Kurt
Musser)
1 . Robertson Ranch
2. Cantarini Ranch
3. Holly Springs (119 acre, 43 single family)
4. Bressi Ranch (3 out of 33 industrial lots)
5. Carlsbad Oaks north (6 out of 23 lots)
6. Raceway Business Park (5 out of 25 lots)
7. Palomar Forum (5 out of 10 lots)
8. Foxes-Miller (2 out of 4 sites)
Subtotal
Conversions - 24 sites
Conversions along Industrial Park Pipelines (24 out of 96 meters)
Subtotal
Retrofits - 23 sites
Retrofits along Industrial Park Pipeline (10 out of 79 meters)
Twin D Pipeline (22 meters) (Harbor Pointe, Archstone, Vista Pacifica, Sea Cliff,
plus City Parks)
East side of Ave. Encinas and both sides of Paseo Del Node south of PAR)
Subtotal
FY 07-08 TOTAL:
190
112
50
10
57
32
5
6
462
95
95
43
92
50
185
.' '-':- -7te-: :
FY 2008-2009
New Developments - 21 sites
1. Bressi Ranch - 15 of 33 industrial lots
2. Carlsbad Oaks North (6 out of 23 lots)
3. Raceway Business Park (last 5 out of 25 sites)
Subtotal
Conversions - 24 sites
Conversions along Industrial Park Pipelines (last 24 out of 96 meters)
Subtotal
Retrofits -15 sites
Retrofits along Industrial Park Pipelines (15 out of 79 meters)
Subtotal
FY 08-09 TOTAL:
FY 2009-2010
20
57
5
82
95
95
65
65
242
New Developments -21 sites
1 . Bressi Ranch - 1 0 of 33 industrial lots
2. Carlsbad Oaks North (5 out of 23 lots)
3. Raceway Business Park (5 out of 25 lots)
Subtotal
Retrofits - 26 sites
Retrofits along Industrial Park Pipelines (20 out of 79 meters)
Retrofits along ECR between PAR and Cassia (5 out of 5 meters)
Twin D Pipeline (3 meters) (Alta Mira)
Subtotal
FY 09-10 TOTAL:
FY 201 0-2011
Retrofits - 24 sites
Retrofits along Industrial Park Pipelines (last 24 out of 79 meters)
Lakeshore Gardens
Subtotal
FY 10-11 TOTAL:
FY 201 1-201 2
Retrofits -1 site
Lakeshore Gardens
Subtotal
FY 11-12
•;:•• •- ; „ : ;..•••••:'** •;- I'^^r-'^-'GRQ^Nd^rdtSM:-?
20
58
5
83
87
23
26
136
sii|-r'2ife":.vi
"-^f^M^t/:.^
:-- ^18111^;%^',
104
156
260
260
156
156
--i;^,15J^x" ,-,
* i^y4fljftfwyt»'
APPENDIX "D"
PHASE II PROJECT MAP
APPENDIX "E"
EXPENDITURE AND
REVENUE WORKSHEET
San Diego County Water Authority
.ocal Water Supply Development (LWSD) Program
3ROJECT CASH FLOW
Encina Basin Water Reclamation Program
FY
End
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
Sales
AFY
-
339
848
974
1,245
1,340
1,189
1,197
1,396
1,628
1,716
1,647
1,845
1,758
1,990
2,575
3,142
4,531
4,708
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
Total
Expenses (5)
-
683,006
637,859
887,014
1,292,436
1,235,571
1,560,553
1,522,698
1,758,204
1,479,752
1,620,176
1,500,898
1,749,597
1,952,302
2,986,327
3,434,343
4,971,322
5,487,417
5,570,200
5,691,375
5,550,977
5,636,832
5,566,017
5,658,667
5,759,511
5,862,796
5,973,263
6,087,792
6,199,993
6,385,993
6,577,573
6,774,900
6,978,147
7.187,491
7,403,116
7,625,209
7,853,966
8,089,585
Cost
perAF
-
2,017.1
752.4
911.2
1,037.9
922.1
1,312.5
1,272.3
1,259.6
1,098.3
944.1
911.5
948.3
1,110.5
1,500.7
1,333.7
1,582.2
1,211.1
1,183.1
1,138.3
1,110.2
1,127.4
1,113.2
,131.7
,151.9
,172.6
,194.7
,217.6
,240.0
1,277.2
1,315.5
1,355.0
1,395.6
1,437.5
1,480.6
1,525.0
1,570.8
1,617.9
Red. Wtr
Sales (1)
250,903
628,220
721,364
922,767
968,820
839,434
844,941
924,020
1,077,918
1,136,184
1,090,498
1,121,164
1,173,917
1,324,485
1,794,672
1,884,406
3,315,822
3,445,352
3,617,620
3,798,501
3,988,426
4,187,847
4,397,239
4,617,101
4,847,956
5,090,354
5,344,872
5,612,115
5,892,721
6,187,357
6,496,725
6,821,561
7,162,639
7,520,771
7,896,810
8,291,650
8,706,233
MWD
Contrib. (2)
41,934
130,561
149,919
191,776
331,837
252,849
158,472
210,770
62,718
257,544
231,715
257,518
264,335
350,268
452,000
591,400
860,600
609,515
446,800
500,000
500,000
500,000
500,000
500,000
415,000
295,000
295,000
-
-
-
-
-
-
-
-
-
-
CWA
Contrib. (6)
33,860
84,780
97,350
124,530
134,000
118,900
119,680
139,580
141,370
122,640
110,340
127,780
128,230
238,669
392,110
591,400
860,600
877,000
893,600
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
-
-
-
-
-
-
-
-
-
-
Total
Revenue
326,697
843,561
968,633
1,239,074
1,434,657
1,211,183
1,123,092
1,274,370
1,282,006
1,516,368
1,432,553
1,506,462
1,566,482
1,913,422
2,638,782
3,067,206
5,037,022
4,931,867
4,958,020
5,298,501
5,488,426
5,687,847
5,897,239
6,117,101
6,262,956
6,385,354
6,639,872
5,612,115
5,892,721
6,187,357
6,496,725
6,821,561
7,162,639
7,520,771
7,896,810
8,291,650
8,706,233
Revenue
perAF
-
965
995
995
995
1,071
1,019
938
913
806
884
870
817
891
962
1,025
976
1,112
1,048
992
1,060
1,098
1,138
1,179
1,223
1,253
1,277
1,328
1,122
1,179
1,237
1,299
1,364
1,433
1,504
1,579
1,658
1,741
Net Rev
perAF
-
(1,052)
243
84
(43)
149
(294)
(334)
(347)
(292)
(60)
(42)
(132)
(219)
(539)
(309)
(606)
(99)
(136)
(147)
(50)
(30)
24
48
72
80
82
110
(118)
(99)
(78)
(56)
(31)
(5)
24
54
88
123
Cum. Net I
Bal. (3) B
-
(356,309)
(150,607)
(68,989)
(122,351)
76,735
(272,635)
(672,240)
(1,156,075)
(1,353,821)
(1,457,629)
(1,525,974)
(1,769.109)
(2,154,929)
(3,227,834)
(4,023,395)
(5,927,511)
(6,377,906)
(7,016,239)
(7,749,595)
(8,002,071)
(8,150,478)
(8,028,648)
(7,790,075)
(7,432,485)
(7,032,325)
(6,620,234)
(6.068,154)
(6,656,032)
(7,149,303)
(7,539,519)
(7,817,693)
(7,974,279)
(7,999,131)
(7,881,475)
(7,609,875)
(7,172,190)
(6,555,542)
nt. on Cum. Net
alance Bal W/lnt.
-
(356,309)
(150,607)
(68,989)
(122,351)
76,735
(272,635)
(672,240)
(1,156,075)
(1,568,723)
(1,237,050)
(905,377)
(573,704)
(2,620,704)
(3,227,834)
(4,023,395)
(5,927,511)
(6,377,906)
(7,016,239)
(7,749,595)
(8,002,071)
(8,150,478)
(8,028,648)
(7,790,075)
(7,432,485)
(7,032,325)
(6,620,234)
(6,068,154)
(6,656,032)
(7,149,303)
(7,539,519)
(7,817,693)
(7,974,279)
(7,999,131)
(7,881,475)
(7,609,875)
(7,172,190)
(6,555,542)
Totals:129,066 163,192,876 1,264.4 133,943,384 9,357,531 13,336,419 156,637,335 1,214 (51)n/a
1) Based on Carlsbad Municipal Water District's recycled water rates for sales to End Users.
2) MWD contribution of up to $210/AF through Local Resources Program.
3) Cumulative Net Balance is the surplus or deficit for the current year plus the cumulative surplus or deficit in previous years.
5) Includes operating expenses and depreciation.
6) Increase to $147/AF on 7/1/2005 and $200/AF on 12/1/2006.
n/a