HomeMy WebLinkAbout2012-02-14; Municipal Water District; 746; SD COUNTY LAWSUIT MWDCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL ^ g
746 AB#
MTG. 2/14/12
DEPT. UTIL
SUPPORT THE SAN DIEGO COUNTY
WATER AUTHORITY'S (SDCWA'S)
LAWSUIT AGAINST THE
METROPOLITAN WATER DISTRICT OF
SOUTHERN CALIFORNIA (MWD)
DEPT. HEAD
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 1435 supporting the San Diego County Water Authority's
(SDCWA's) Lawsuit against the Metropolitan Water District of Southern California (MWD).
ITEM EXPLANATION:
San Diego County's $186 billion economy and 3.1 million people depend upon the SDCWA for
approximately 75 percent of all water used in the region. The SDCWA purchases neariy 50 percent of
the region's water supply from the MWD and pays MWD a transportation charge to transport another 25
percent of the region's water supply. Since 2006, the MWD has approved water rate increases totaling
75 percent.
The SDCWA believes the MWD water rate structure misallocates the vast majority of its own water
supply costs to the water transportation rates. SDCWA pays these transportation charges to transport its
Imperial Irrigation District and canal lining supplies, resulting in an overcharge of $31 million to SDCWA
member agencies in 2011 and illegal subsidies to each of the 25 other member agencies of MWD.
These overcharges are estimated to reach as much as $230 million annually by the year 2021, and
amount to as much as $2.1 billion over 45 years.
On June 11, 2010 the SDCWA filed a lawsuit against MWD, challenging MWD's 2011 and 2012 water
rates. On October 27, 2011 the SDCWA successfully amended its lawsuit to assert additional claims
against MWD alleging that MWD took additional unfair and punitive actions that negatively impact
SDCWA and San Diego County ratepayers.
SCDWA requests that the CMWD Board supports the SDCWA's lawsuit and its ongoing efforts to secure
a reliable water supply and transportation rates from MWD at affordable, lawful and equitable prices.
FISCAL IMPACT:
None with this action; however, escalating water delivery charges will have long term impacts on water
rates.
DEPARTMENT CONTACT: Glenn Pruim 760-438-2722 Glenn.Pruim@carisbadca.qov
FOR CITY CLERKS USE ONLY. X BOARD ACTION: APPROVED X CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
Page Two
ENVIRONMENTAL IMPACT:
None.
EXHIBITS:
1. Resolution No. 1435 supporting the San Diego County Water Authority's (SDCWA's)
Lawsuit against the Metropolitan Water District of Southern California (MWD).
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WHEREAS, the SDCWA purchases neariy 50 percent of the region's water
supply from the Metropolitan Water District of Southern California (MWD) and pays
MWD a transportation charge to transport another 25 percent of the region's water
1 RESOLUTION NO. 1435
2 A RESOLUTION OF THE CARLSBAD MUNICIPAL WATER
DISTRICT BOARD OF DIRECTORS OF CARLSBAD,
3 CALIFORNIA, TO SUPPORT THE SAN DIEGO COUNTY
WATER AUTHORITY'S LAWSUIT AGAINST THE
4 METROPOLITAN WATER DISTRICT OF SOUTHERN
CALIFORNIA
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WHEREAS, San Diego County's $186 billion economy and 3.1 million people
depend upon the San Diego County Water Authority (SDCWA) for approximately 75
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g percent of all water used in the region; and
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.,4 supply the SDCWA obtained through water conservation achieved through a historic
15 water transfer agreement with the Imperial Irrigation District (HD) and by lining the All
16 American & Coachella canals; and
17 WHEREAS, MWD has approved water rate increases totaling 75 percent since
2006; and
WHEREAS, MWD's water rate structure misallocates the vast majority of its own
water supply costs to the water transportation rates charged to the SCWA to transport
the IID and canal lining supplies, resulting in an overcharge of $31 million to San Diego
County ratepayers in 2011 and illegal subsidies to each of the 25 other member
agencies of MWD; and
25 WHEREAS, these overcharges are estimated to reach as much as $230 million
26 annually by the year 2021, and amount to as much as $2.1 billion over 45 years; and
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1 WHEREAS, on June 11, 2010, the SDCWA filed a lawsuit against MWD,
2 challenging MWD's 2011 and 2012 water rates, which is currently pending in the San
Francisco Superior Count as Case No. CPF-10-510830; and
WHEREAS, on October 27, 2011, the SDCWA successfully amended its lawsuit
to assert additional claims against MWD alleging that MWD took additional unfair and
punitive actions that negatively impact the SDCWA and San Diego County ratepayers;
and
WHEREAS, the Carisbad Municipal Water District and SDCWA require MWD
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11 apportioned among its rate categories and among the member agencies of MWD.
12 NOW, THEREFORE, BE IT RESOLVED by the Carisbad Municipal Water
District Board of Directors of the City of Carisbad, California, as follows:
1. That the above recitations are true and correct.
2. That the Carisbad Municipal Water District Board of Directors supports the
SDCWA's lawsuit and the SDCWA's ongoing efforts to secure a reliable water supply
and transportation rates from MWD at affordable, lawful and equitable prices.
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of
Directors of the Carisbad Municipal Water District of the City of Carisbad on the 14'^ day
of February 2012, by the following vote to wit:
AYES: Board Members Hall, Kulchin, Blackburn, Douglas, Packard.
NOES: None.
ABSENT: None.
ATTEST:
.ORRAINE M. yXQpD, Secretary
(SEAL)