HomeMy WebLinkAbout2022-06-09; San Diego County Water Authority Third Refund to Member Agencies (Districts - All); Gomez, PazI
To the members of the:
CITY COUNCIL
Date ~CA _L CC V
CM _L_ ACM _L DCM (3) V
June 9, 2022
CMWD Board Memorandum .
To: Carlsbad Municipal Water District Board of Directors
From: Paz Gomez, Deputy City Manager, Public Works
Vicki Quiram, General Manager
Via: Scott Chadwick, Executive Manager @
Ccarlsbad
Municipal Water District
Memo ID #2022070
Re: San Diego County Water Authority Third Refund to Member Agencies (Districts -All)
This memorandum provides an update to previous Board Memoranda dated April 8, 2021, and
Nov. 18, 2021, regarding refunds of $3,055,177.74 that the Carlsbad Municipal Water District
(CMWD) received from the San Diego County Water Authority (Water Authority).
Background
CMWD has been awarded a total of $3,055,177.74 that represents CMWD's share of funds
awarded to the Water Authority for contract damages and interest from the Metropolitan Water
District of Southern California (MWD).
The refunds are a result of the Water Authority's lawsuits with the MWD for unlawful rate
charges assessed between the years 2011 and 2014. The CMWD Board adopted
Resolution No. 1653 on May 11, 2021, and Resolution No. 1668 on Jan. 18, 2022, authorizing use
of the respective refunds to offset the rates that the CMWD pays the Water Authority for water
supply, which will result in offsetting customer rate increases.
Discussion
On May 26, 2022, the Water Authority announced a plan to distribute a third refund to its 24
member agencies. The CMWD will receive a third distribution in the amount of $398,486.16,
bringing the total refund to $3,453,663.90. This money is from attorneys' fees paid by MWD to
the Water Authority for litigating the lawsuits.
While the damages, interest and attorneys' fee awards are important, particularly to the
CMWD's rate payers, the court rulings will also discourage future MWD overcharges and thereby
minimize future disputes. The Water Authority and the MWD are seeking to resolve remaining
issues outside of court as they work together on various water issues affecting both agencies
now and in the future.
The rate case lawsuits generated other benefits including increasing the Water Authority's
preferential rights to MWD water and affirming the Water Authority's access to MWD programs
that support development of local supplies and water efficiency measures.
Carlsbad Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 442-339-2722 t
I
Board Memo-SDCWA Third Refund to Member Agencies (Districts -All)
June 9, 2022
Page 2
Next Steps
Within the next few months, staff from the CMWD and the Finance Department will return to
the CMWD Board with information on options for use of the third refund of $398,486.16, which
the CMWD will receive from the Water Authority.
cc: Geoff Patnoe, Assistant Executive Manager
Celia Brewer, General Counsel
Laura Rocha, Deputy City Manager, Administrative Services
Robby Contreras, Assistant General Counsel
Zach Korach, Finance Director
Kim Riboni, Senior Accountant
Shoshana Aguilar, Senior Management Analyst