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HomeMy WebLinkAbout1994-04-12; Municipal Water District; 239; Reimbursement - Aviara Land Associatesha # d3cj ITITLE: APPROVAL OF REIMBURSEMENT TO AVIARA LAND CARLSBArMUNlClPAL WATER DISTRIC - - AGENDA BIL ITG. 4/12/94 BEPT. e ASSOCIATES FOR RECLAIMED WATER FACILITIES CMWD PROJECT NO. 92-301, CONTRACT 3394 IECOMMENDED ACTION: Adopt Resolution No. 865 for approval of reimbursement to Aviara Land Associates for Reclaimed Water Facilities, CMWD Project No. 93-301, Contract 3394. JTFM EXPLANATION; In 1991, during the height of the drought, the San Diego County Water Authority was considering declaration of a 50% water conservation effort which would preclude all outdoor irrigation using potable water. Aviara had just completed construction of the new golf course and, as a result of the concern for the County Water Authority’s possible declaration, elected to install temporary facilities to allow the District to deliver reclaimed water to the Aviara facilities. The District did require, however, that a portion of these facilities be installed in a permanent manner to avoid future shutdowns and construction conflicts when the remaining permanent facilities are installed. Through a series of written correspondence, it was decided that staff would recommend to the Board that Aviara be reimbursed for the cost of those permanent facilities. These permanent facilities benefit the District by allowing the District to serve additional reclaimed water customers more efficiently. As a result, Aviara was required to provide the complete design for the permanent reclaimed water pipeline and to also provide for the pipeline to be installed in a permanent manner beneath El Camino Real. Aviara was also required to perform all of the necessary piping changes to convert one of the District’s two potable water storage tanks to reclaimed water storage. Aviara received three bids, at the direction of the District, and allowed the lowest bidder to proceed with the project. The District agreed to reimburse Aviara, subject to Board approval, for the design, the permanent portion of the pipeline installation and the water storage tank conversion upon receipt of proceeds from the State Low-Interest Loan. District staff has reviewed and verified the following breakdown of costs and deemed them to be appropriate. Design (entire pipeline) $70,600 City Review and Permits 6,930 Construction (permanent pipe sections and repiping at storage tank) 143.628 Total Reimbursement $221,158 The District has submitted the necessary paperwork to the State to initiate payment from the Low-Interest Loan Program, and $521,000 of the total $2.4 million loan has been received. However, only the design portion of the above project ($70,600) was deemed eligible by the State for funding with the low-interest loan. Therefore, $151,000 still needs to be funded by the District with a loan from the Water Replacement Fund. With Board’s concurrence and approval, the reimbursement payment in the amount of $221 ,I 58 will be paid to Aviara Land Associates for reclaimed water facilities. FISCAL IMPACT: The District has been approved for the State Low-Interest Loan in the amount of $2.4 million. As previously stated, the State Low-Interest Loan will only cover $70,600 of the reclaimed project funded by Aviara. Therefore, staff is requesting that the remaining $151,000 needed for the project be funded through a loan from the Water Replacement Fund. This loan will bear interest at the average annual rate earned on the City’s investment portfolio. It will be repaid through the sale of reclaimed water and the rebates received from the County Water Authority and the Metropolitan Water District. PAGE 2 AB# d 39 EXHIBITS: 1. 2. Location map. Resolution No. 8 (95 for approval of reimbursement to Aviara Land Associates for Reclaimed Water Facilities. EXHIBIT 1 LOCATION MAP PROJECT NAME: PROJECT NO. EXHIBIT NO. 02 RECLAIMED WATER TANK CONVERSION REIMBURSEMENT 91- 301 1 I I 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 la i 19 20 21 22 23 24 25 26 27 28 EXHIBIT 2 RESOLUTION NO. 8 65 A RESOLUTlON OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF CARLSBAD, CAUFORNIA, APPROVING REIMBURSEMENT TO AVIARA LAND ASSOCIATES FOR RECLAIMED WATER FACILITIES, CMWD PROJECT NO. 91-301, CONTRACT 3394 WHEREAS, reclaimed water facilities improvements of the golf course have been installed and completed by the Aviara Land Associates as per agreement requirements of the District stating that a portion of these facilities be installed in a permanent manner to avoid future shutdowns and construction conflicts when the remaining permanent facilities are installed; and, WHEREAS, Aviara Land Associates provided the complete design for the permanent reclaimed water pipeline, provided for the pipeline to be installed in a permanent manner beneath El Camino Real, performed all of the necessary piping changes to convert one of the District’s potable water tanks to reclaimed water storage and at the direction of the District, receive three bids and allowed the lowest bidder to proceed with the project, all as required by the District: and, WHEREAS, the District agreed to reimburse Aviara Land Associates for the design and permanent portion of the pipeline installation and water tank conversion upon receipt of proceeds from the State of California Low-Interest Loan; and WHEREAS, the District has submitted the necessary paperwork to the State to initiate payment from the Low-Interest Loan Program: and WHEREAS, the District has been approved for the State Low-Interest Loan in the amount of $2,429,240; and WHEREAS, the State Low-Interest Loan program will only cover the design portion of the reclaimed project funded by Aviara; and WHEREAS, it is staffs recommendation that the additional amount of $151,000 which is required to fund this reclaimed project be loaned to the Reclaimed Project Fund from the Water Replacement Fund: and NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Carlsbad Municipal Water District, as follows: 1. That the above recitations are true and correct. I. 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 la 19 20 21 22 23 24 25 26 27 28 2. That the reclaimed water facilities improvements to the golf course installed by the Aviara Land Associates is deemed complete and accepted. 3. That as per agreement between Aviara Land Associates and the Carlsbad Municipal Water District, reimbursement will be paid to Aviara Land Associates for the design and permanent portion of the pipeline installation and water tank conversion. 4. That a loan in the amount of $151,000 is authorized from the Water Replacement Fund to the Reclaimed Projects Fund. The loan shall bear interest at the annual average rate of return earned on the City’s investment portfolio and shall be repaid through the sale of reclaimed water and the rebates received from the County Water Authority and the Metropolitan Water District. PASSED, APPROVED AND ADOPTED at a special meeting of the Carlsbad Municipal Water District held on the 19th day of , 1994, by the following vote to wit: APRIL AYES: Board Members Lewis, Stanton, Kulchin, Nygaard, Finnila NOES: None ABSENT: None ATTEST: ALETHA L. RAUTENKR (SEAL) CMWD 9 i-301