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HomeMy WebLinkAbout2011-09-13; Municipal Water District; Resolution 1426EXHIBIT 1 1 RESOLUTION NO. 1426 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE 3 CARLSBAD MUNICIPAL WATER DISTRICT APPROVING THE AGREEMENT WITH THE SAN DIEGO COUNTY WATER 4 AUTHORITY MEMORIALIZING CERTAIN UNERSTANDINGS AND ESTABLISHING A FRAMEWORK FOR COOPERATION 5 REGARDING THE PROPOSED CARLSBAD SEAWATER DESALINATION PROJECT 6 7 WHEREAS, on October 19, 2004 the CMWD Board executed a Water Purchase 8 Agreement (WPA) with Poseidon Resources; and g WHEREAS, the City performed the required CEQA approvals and certified the 10 Environmental Impact Report (EIR) for the project on June 13, 2006 and approved an 11 Addendum to the certified EIR on September 15, 2009; and 12 WHEREAS, the City entered into an Amended and Restated Development13 Agreement with Poseidon executed by the City on October 5, 2009, addressing certain 15 benefits to be derived from the project; and 16 WHEREAS, SDCWA and Poseidon began having discussions about a new 17 arrangement, wherein SDCWA would purchase all of the proposed project's product 18 water; and 1Q WHEREAS, at its July 22, 2010 meeting, the SDCWA Board approved a Term 20 Sheet outlining general terms between SDCWA and Poseidon; and 21 WHEREAS, in addition to the general terms contained within the Term Sheet, 22 there is a provision that the SDCWA may acquire the desalination facility at any time 23 after ten years of commercial operation; and 25 WHEREAS, in order to preserve the numerous benefits that had been provided 26 to Carlsbad in the Water Purchase Agreement, Development Agreement and related 27 City permits, approvals and agreements, City/CMWD staff began conversations with 28 1 SDCWA to develop an agreement that will protect the interests of the citizens and rate 2 payers of Carlsbad; and 3 NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water 4 District Board of the City of Carlsbad, California, as follows that: 5 1. The above recitations are true and correct. 6 2. That the Carlsbad Municipal Water District approves the "Agreement 8 Memorializing Certain Understandings and Establishing a Framework for 9 Cooperation Regarding a Desalination Project located within the City of 10 Carlsbad", hereinafter referred to as the "Agreement" with San Diego 11 County Water Authority ("CWA"). The executive director of the district is 12 authorized to execute it provided Attachment "A" to the agreement is 13 approved as to form by the general counsel, the Agreement is fully 14 executed by CWA and, Poseidon and CMWD have entered into a legally 15 binding agreement establishing the terms under which the parties would 16 rescind the Water Purchase Agreement between them.17 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// 25 '" 26 I" 27 '" 28 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 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad Municipal Water District Board of Directors, Carlsbad City Council, and Carlsbad Housing and Redevelopment Commission held on the 13th day of September 2011, by the following vote to wit: AYES: Board Members Hall, Kulchin, Blackburn, Douglas, Packard. NOES: None. ABSENT: None. MATT HALL, President LORRAINEM. WOOD, Secretary (SEAL) '''I