HomeMy WebLinkAbout2000-06-13; Municipal Water District; 480; Water Authority's Proposed Revisions to ESPP iJb
C*R~s&LwwC~P*~ WATER DISTRICT LENDA
AB# -Al.xQ TITLE: Report On The County Water Authority’s
MTG. 6/13/00
DEPT. PW M&O
Proposed Revisions To The Emergency
Storage Project (ESP) Revenue Structure
CITY ATTY.
CITY MGRa
RECOMMENDED ACTION:
This is an informational item and no board action is required.
ITEM EXPLANATION:
Recent discussions and actions by the Board of Directors at the San Diego County Water
Authority, concerning the Authority’s Emergency Storage Project (ESP), have led the City of
San Diego to request a contractual obligation for their share of the project. The City wants to
insure that their costs and benefits remain as originally contemplated when the City entered
into contracts with CWA. The City’s position is that the present cost allocation can be
changed by future Boards to the detriment of the City of San Diego.
As a result, the CWA staff, at Board direction, developed a spreadsheet projecting the
calculated financial obligations of each member agency. The financial obligations are based
on a cost allocation factor and payment formula outlined in the ESP draft principles.
Present discussions at the Authority involve the interest each member agency may have in
contracting with the Authority for their share or financial obligation of the ESP. A benefit to
contracting with the Authority, for a member’s ESP financial obligation, is that the allocation
will not be changed and, as a result, that member agency’s costs will not increase over the
contracted allocation. If a member agency is not comfortable with the present allocation and
does not wish to enter into a contractual obligation with the Authority, their cost allocations
would be subject to increase should a future Board decide to change the member agency
cost allocation.
Staff will be making a presentation’ on this subject at tonight’s meeting.
ENVIRONMENTAL REVIEW:
This is an informational item and there is no environmental review required.
FISCAL IMPACT:
This is an informational item and there is no fiscal impact at this time.
R:\CMWD\Word\OO Agenda Bills\Repxt on CWA’s ESP Financing Structure.doc