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HomeMy WebLinkAbout2022-01-18; Municipal Water District; Resolution 1668RESOLUTION NO. 1668 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, AUTHORIZING USE OF A SECOND REFUND FROM THE SAN DIEGO COUNTY WATER AUTHORITY TO OFFSET THE RATES THE CARLSBAD MUNICIPAL WATER DISTRICT PAYS THE SAN DIEGO COUNTY WATER AUTHORITY FOR WATER EXHIBIT 1. WHEREAS, on Feb. 25, 2021, the San Diego County Water Authority, or SDCWA, Board approved the first refund to member agencies, including the Carlsbad Municipal Water District, or CMWD, in proportionate shares for legal damages and interest awarded from the Metropolitan Water District of Southern California to the SDCWA for rate charges that had been unlawfully assessed between 2011 and 2014; and WHEREAS, on May 11, 2021, the CMWD Board of Directors of the City of Carlsbad, California, adopted Resolution No. 1653, authorizing the use of the first SDCWA refund of $1,692,237 to offset the rates that the CMWD pays the SDCWA for water supply, which was considered in developing the recent cost of service study update; and WHEREAS, on Nov. 5, 2021, the SDCWA refunded the CMWD an amount of $1,362,941 for the CMWD's share of the second refund; and WHEREAS, the CMWD Board has determined it necessary and in the public interest to approve the use of the SDCWA second refund to offset the rates the CMWD pays the SDCWA for water supply, which will result in offsetting future customer rate increases. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the SDCWA's second refund in the amount of $1,362,941 shall be used to offset the rates the CMWD pays the SDCWA for water supply, which will result in offsetting future customer rate increases. Jan. 18, 2022 Item #1 Page 4 of 5