HomeMy WebLinkAbout2009-05-05; City Council; Minutes (2)MINUTES
JOINT MEETING OF: THE CITY COUNCIL AND CARLSBAD MUNICIPAL WATER
DISTRICT
(Joint Special Meeting)
DATE OF MEETING: May 5, 2009
TIME OF MEETING: 6:00 p.m.
PLACE OF MEETING: City Council Chambers
CALL TO ORDER: Mayor/President Lewis called the Joint Special Meeting to order at 6:42 p.m.
ROLL CALL: was taken by the City Clerk/Secretary, as follows:
Present: Council/Board Members Lewis, Kulchin, Hall, Packard and Blackburn.
Absent: None.
DEPARTMENTAL AND CITY MANAGER REPORT:
13.AB #19.796 - DROUGHT MANAGEMENT UPDATE AND REQUEST TO SET PUBLIC
HEARING FOR WATER AND SEWER RATES.
Deputy Public Works Director Mark Stone, Public Works Manager Cari Dale and Senior
Accountant Helga Stover presented the staff report and reviewed a PowerPoint Presentation (on
file in the Office of the City Clerk).
Mr. Stone gave a brief overview of the current drought conditions in the region. He explained that
the Carlsbad Municipal Water District Board will be presented with a Resolution in mid to late May
to declare a Level II Drought Alert in response to the region's water shortage.
Mr. Stone also explained that while water supplies are dropping the purchase price of water
continues to escalate. He stated that Metropolitan Water District recently adopted a 19.7%
increase for the purchase price of water that will become effective in September, 2009 and that the
San Diego County Water Authority Board will be considering a 21% to 29% increase in July, 2009.
Ms. Dale explained that staff has been working with a consultant, Robb Grantham of PCS Group,
to design a rate model to respond to water cutbacks and purchase cost increases.
Ms. Stover explained that the average proposed water rate increase will be approximately 18% per
household and that the average proposed wastewater rate increase will be 9%. In conclusion, Ms.
Stover explained that proposed rate increases will help offset the increase being charged to the
City of Carlsbad.
In response to an inquiry from Council/Board Member Packard, Mr. Grantham of PCS Group
explained that under the proposed rate structure, recycled water charges will never exceed the
cost of potable water.
Council/Board Member Packard expressed concerns relating to the way irrigation and recycled
water charges were combined on the proposed public hearing notice.
In response to an inquiry from City Attorney Ron Ball, Mr. Grantham explained that although the
notice was prepared to show the maximum percentage of increase for the irrigation/recycled water
rates, the Council/Board has the discretion to adopt a rate that is lower than what is on the notice.
May 5, 2009 JOINT SPECIAL MEETING OF THE CITY COUNCIL AND
CARLSBAD MUNICIPAL WATER DISTRICT
Page 2
Mr. Ball suggested that the notice be revised to reflect irrigation and recycled water separately.
Council/Board Member Hall requested that when reviewing the proposed rate increases that staff
also look at in-house costs to help soften the charges passed onto the citizens of Carlsbad.
Mayor Pro Tern/Vice President Kulchin commented that the City cannot subsidize the cost of
water; therefore, a pass through to the citizens is necessary.
In response to Council/Board Member Packard, Mr. Stone explained that the City of Carlsbad is
not under any obligation to purchase water from Metropolitan Water District; however, that
Metropolitan is the City's sole source of water at this time.
ACTION: On a motion by Mayor Pro Tern/Vice President Kulchin, the Council adopted
RESOLUTION NO. 2009-095. setting the Public Hearing date for June 23,
2009 to consider proposed increases in wastewater rates as well as future
rate adjustments allocating for the pass-through of inflationary costs; and,
The Board adopted RESOLUTION NO. 1352. setting the Public Hearing date
for June 23, 2009 to consider proposed increases in water rates and future
rate adjustments allowing for the pass-through of wholesale water costs and
inflationary adjustments.
AYES: Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
ADJOURNMENT:
By proper motion, the Joint Special Meeting of May 5, 2009 was adjourned at 7:17 p.m.
LORRAINE M. WOD, CMC
City Clerk/Secretary
Sheila R. Cobian, CMC
Deputy City Clerk/Deputy Secretary