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HomeMy WebLinkAbout2008-05-20; Municipal Water District; 655; Water supply development program agreementCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL 1 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. 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 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. 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 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