20-0121_SANTA MARGARITA WATER DISTRICT_F1a_Staff PowerPoint PresentationUtilities Reorganization:
Annexation Agreement
Item F1a
January 21, 2020
Annexation Agreement
•Critical milestone
•Builds upon Memorandum of Understanding
•No change in major deal points
•Approved by SMWD Board of Directors on January 17
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Summary of Agreement
•Modest initial rate reduction
•$25 million capital investment over 10 years
•Assets, water rights and regional memberships transfer
•SMWD assumes responsibilities of system ownership
•16 positions transfer to SMWD
•Ancillary agreements for specific matters
•SMWD to coordinate with SCWD regarding water and sewer service to Dana Point customers
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Next Steps
•LAFCO Consideration Phase of Utilities Reorganization:
•Submit Annexation Agreement and LAFCO Application
•Review by LAFCO staff
•Consideration by LAFCO Board of Commissioners
•Issuance of certificate of completion
•Transfer date expected in Summer or Fall 2020
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Recommendation
Adopt Resolution that:
1.Approves Annexation Agreement setting forth terms associated
with transfer of water and sewer systems to SMWD; and,
2.Makes a determination of CEQA exemption
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Thank you
QUESTIONS?
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