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HomeMy WebLinkAbout1974-05-21; City Council; 2237-2; Seventh Supplement to Basic Joint Sewer Agreement-.£ H 'E CITY OF CARLSBA CALIF' ORNIA Agenda Bill No . 2237 Supplement No. 2 Referred To : Pate? May 21, 1974 Subject: Seventh Supplement to the Basic Joint Sewer Agreement . Submitted By: City Attorney 'Statement of the Matter Your body at the City Council meeting of May 7, 1974, approved in prin- cipal the proposed Seventh Supplement to the Joint Sewer Agreement and directed this office to prepare the necessary documents to formally ap- prove said agreement. Exhibit 1.. Resolution No.authorizing the Mayor and City Clerk to execute the Seventh Supplement to the Joint Sewer Agreement. Staff 'Recommendations to City Manager Adoption of Resolution No. ^y^J^will effectuate the Seventh Supplement. AB No,2237 Supp. No. 2 Date: May 21, 1974 City Manager's Recommendation Concur with staff recommendation. 6-18-74 This matter has been reviewed very carefully by the staff. They are satisfied at this time that the present wording reflects an equitable distribution of the costs relating to the engineering. Under the most adverse circumstances in which the City might receive no additional capacity, the disproportionate cost to the City, if any, would be very small. Out of a total possible project cost of $800,000.00 the City could be responsible for up to $7,000.00 of increased capacity engineering costs for which other agencies gain an advantage. The possibility of the City receiving no portion of any increased capacity is extremely remote and we would, therefore, recommend approval of the Seventh Supplement. Council Action 5-21-74 The matter was deferred to June 5, 1974 for further report. 6-5-74 Matter continued to June 18, 1974. 6-18-74 The Council approved the Seventh Supplement to the Master Agreement in its present form with the understanding that every effort would be made to insure that the final engineering costs, as well as the final construction costs, would be made by each agency on the basis of benefit gained. -2- 1 toin > UL I :r H 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 29 30 31 32 RESOLUTION NO.3425 A RESOLUTION OF THE 'CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AGREE- MENT BETWEEN THE CITY OF.CARLSBAD AND VISTA SANITATION DISTRICT, BUENA SANITATION DISTRICT, SAN MARCOS COUNTY WATER DISTRICT,, LEUCADIA COUNTY WATER DISTRICT AND ENCINITAS SANITARY DISTRICT FOR PHASE III ENLARGEMENT OF ENCINA WATER POLLUTION CONTROL FACILITY, OWNERSHIP RIGHTS, DISTRIBUTION OF BUY-IN MONIES AND PARTICIPATION IN THE JOINT ADVISORY COMMITTEE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT. : The City Council of the City of Carlsbad, California, does hereby resolve as follows: 1. That that certain agreement between the City of Carlsbad and Vista Sanitation District, Buena Sanitation District, San Marcos County Water District, Leucadia County Water District, and Encinitas Sanitary District for Phase III enlargement of Encina Water Pollution Control Facility, ownership rights, distribution of buy-in monies and participation in the Joint Advisory Committee, a copy of which is attached hereto as Exhibit A and incorporated herein by reference, is hereby approved. 2. That the Mayor of the City of Carlsbad is hereby authorized and directed to execute said agreement for and on behalf of the City of Carlsbad. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the day of June , 1974, by the following vote, to wit: AYES: Councilmen Frazee, Chase and McComas NOES: None ABSENT: Councilman Lewis ATTEST: ROBERT C. FRAZEE, Mayor MARGARET E. ADAMS, City Clerk (SEAL),/ Jfc SEVENTH SUPPLEMENT TO BASIC AGREEMENT TO PROVIDE FOR (1) PHASE III ENLARGEMENT OF ENCINA WATER POLLUTION CONTROL FACILITY, (2) OWNERSHIP RIGHTS, (3) DISTRIBUTION OF BUY-IN MONIES, AND (4) PARTICIPATION IN THE JOINT ADVISORY COMMITTEE This Seventh Supplement to Basic Agreement is made and entered into as of the 1st day of May, 1974, by and among: VISTA SANITATION DISTRICT ("Vista"), a county sanitation district whose governing board is the City Council of the City of Vista; CITY OF CARLSBAD ("Carlsbad"), a municipal corporation; BUENA SANITATION DISTRICT ("Buena"), a county sanitation district whose governing board is the Board of Supervisors of San Diego County; SAN MARCOS COUNTY WATER DISTRICT ("San Marcos"), a county water district; LEUCADIA COUNTY WATER DISTRICT ("Leucadia"), a county water district; and ENCINITAS SANITARY DISTRICT ("Encinitas"), a sanitary district. RECITALS A, Vista, Carlsbad, Buena and San Marcos own and operateii 95 ii a Joint Sewer System, including the Encina Water Pollution ij 26 ii Control Facility and Ocean Outfall (and related facilities) 27!pursuant to the following agreements: 23 // EXHIBIT A TO RESOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I | 25 ! 26" 27 28 (1) July 13, 1961 (2) March 25, 1963 (3) January 6, 1964 (4) January 6, 1964 (5) September 14, 1964 (6) March 8, 1965 (7) March 22, 1965 (8) August 3, 1965 •(9) June 20, 1966 TITLE Basic Agreement Between Vista Sani- tation District and the City of Carls- bad for Acquisition and Construction of a Joint Sewer System ("Basic Agreement"). First Supplement to Basic Agreement, Authorizing Vista to Apply for Federal Grants. Second Supplement to Basic Agreement Between Vista Sanitation District and the City of Carlsbad for Acquisition and Construction of the Joint Sewer System. Supplemental Agreement (No. 1) to Basic Agreement Between Vista Sani- tation District and City of Carlsbad for Acquisition and Construction of Joint System, for Purpose of Allo- cating Funds Received from Federal Government. First Amendment to Basic Agreement Between Vista Sanitation District and the City of Carlsbad for Acquisition and Construction of a Joint Sewer System. Second Amendment to Basic Agreement Between Vista Sanitation District'and the City of Carlsbad for Acquisition and Construction of a Joint Sewer System. Third Supplement to Basic Agreement Between Vista Sanitation District and the City of Carlsbad for Acquisition and Construction of a Joint Sewer System ("Third Supplement"). Agreement Between County of San Diego, | and City of Carlsbad, Vista Sanitation District and Buena Sanitation District! for the Operation of the Joint System.! Agreement Between Buena Sanitation District and City of Carlsbad for Lease by Carlsbad of Capacity in the Encina Outfall of the Buena Sanitation District, for Lease by Buena to Carls- bad of Designated Capacity in the Encina Outfall. 2 - 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 . 19 20 21 22 23 241I! 25 26 27 28 DATE (10) June 19, 1967 (11) January 1, 1970 (12) July 7, 1970 (13) December 1, 1970 (14) February 16, 1971 (15) August 17, 1971 (16) August 17, 1971 |i (17) July 5, 1972 May 1, 1973(18) (19) October 2, 1973 (20) October 3, 1973 TITLE Agreement Between Buena Sanitation District and San Marcos County Water District for Lease by San Marcos of Capacity in Buena Sanitation Dis- trict's Encina Outfall Sewer Line. Fourth Supplement to Basic Agreement Between Vista Sanitation District, City of Carlsbad, Buena Sanitation District and San Marcos County Water District re Construction of an Enlarge- ment to the Encina Water Pollution Control Facilities of the Joint System, Authorizing Vista to Apply for and Receive and Disburse Federal Grant. Agreement for Interim Connection by Leucadia County Water District. Agreement Between County of San Diego and Vista, Carlsbad, Buena and San Marcos for Legal Services. Supplement to Agreement for Interim Connection by Leucadia County Water District. Fifth Supplement to Basic Agreement to Provide for Participation by Leucadia County Water District and Encinitas Sanitary District ("Fifth Supplement"). Third Amendment to Basic Agreement Between Vista Sanitation District and City of Carlsbad for Acquisition and Construction of Joint Sewer System. Agreement for Temporary Connection by City of Oceanside. Agreement Between the City of Carls- bad, Vista Sanitation District, Buena Sanitation District, and San Marcos County Water District for Legal Services. Second Supplement to Agreement for Interim Connection by Leucadia County Water District. Sixth Supplement to Basic Agreement to Provide for Interim Expansion of Encina Water Pollution Control Facility ("Sixth Supplement"). — 3 — 10 11 12 13 14 15 16 17 18 19 20 21 22 23 B. An enlargement of the Encina Water Pollution Control Facility (Unit I) and an extension of the Ocean Outfall (Unit J), known as Phase II, is currently under construction providing for an increase in the capacity of such Unit I of 3 MGD, from 6.75 MGD to 9.75 MGD, and a further expansion of Unit I, known as Phase IIA, of an additional 4 MGD from 9.75 MGD to 13.75 MGD is also currently under construction. C. A further enlargement of Unit I, known as Phase III, planned to be commenced in 1975, is necessary to meet further flowage demands of the parties hereto, and environmental pro- tection requirements of applicable regulatory bodies. D. It is necessary to contract for engineering services to plan and design the Phase III Enlargement. E. It is desirable to include Leucadia and Encinitas as full participants in the ownership and operation of the Joint Sewer System. F. It is desirable to provide for settlement of a dispute * relating to distribution of excess buy-in monies arising out of the Fifth Supplement and the Phase II Expansion. G. It is desirable to include Leucadia and Encinitas as full participants and members of the Joint Advisory Committee. H. This Seventh Supplement to Basic Agreement.is made pur- suant to the provisions of Article 1, Chapter 5, Division 7, 24 jj Title 1, of the Government Code of the State of California 25 26 27 28 (commencing with Section 6500), relating the joint exercise of powers common to all public agencies; in this case being Vista, Carlsbad, Buena, San Marcos, Leucadia and Encinitas, each of which is authorized to contract with the others pursuant thereto.! — 4 — 4 5 8 10 11 12 13 14 NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND MUTUAL COVENANTS AND AGREEMENTS HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS: Section 1. Phase III Enlargement of Unit I The Encina Water Pollution Control Facility shall be enlarged and improved to meet future flowage demands of the parties hereto, and environmental protection requirements of applicable regulatory |bodies, and such shall hereafter be referred to as the Phase III Enlargement. Section 2. Joint Project The Phase III Enlargement shall be a joint project of Vista, Carlsbad, Buena, San Marcos, Leucadia and Encinitas. Vista is hereby appointed as the administrator of the joint project and is hereby authorized to contract with Brown and Caldwell, Consulting 15 j! Engineers, for engineering services as hereinafter provided, and 16 17 18 19 20 21 22 to prepare and file on behalf of the parties appropriate applica- tions and other documents for approval of the joint project and possible grants in aid under state and federal laws and regulat Vista shall also cause to be prepared by such contract for engineering services, the environmental impact report for the !it ions Phase III Enlargement as the lead agency, pursuant to the pro- visions of Section 21165 of the Public Resources Code of the 23 State of California. 24 Section 3. Engineer ing ServicesI 25 j The engineering services to be furnished by Brown and i 26 j Caldwell pursuant to the contract authorized hereunder shall 27 I include the following: 28 // — 5 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 . (1) Preliminary engineering; (2) Preparation of a project report, including sewer system infiltration and inflow analysis; (3) Preparation of an environmental impact report, including public hearing and any supplemental reports as may be required; (4) Development of a revenue program and financial plan; and if the former are approved by the parties hereto, then, in addition: (5) Design services, including preparation of plans and specifications and office engineering during construc- tion; (6) Preparation of operation and maintenance manuals; and (7) Miscellaneous engineering services. Section 4. Payment for Cost of Engineering Services The parties hereto shall advance to Vista the costs of such engineering services contracted for by Vista as provided herein, in the following proportions: Vista, 29.46%; Carlsbad, 24.95%; Buena, 4.51%; San Marcos, 17.45%; Leucadia, 16.36%; and Encinitas, 7.27%. However, the ultimate liability of each of the parties hereto for the costs of such engineering services shall be equal to the total cost of such engineering services 'multiplied by the respective percentages of capacity each will be entitled to in 24 I Unit I at the conclusion of the Phase III Enlargement as deter- 25 26 27 28 mined by the approval of all parties hereto of the reports and |plans to be provided pursuant to paragraphs (1) through (4) of Section 3 of this Agreement. The parties hereto shall advance to Vista forthwith, as administrator, for the engineering services - 6 - 10 11 12 13 14 16 17 18 19 20 21 22 23 s-/ . ' described in paragraphs (1) through (4) of Section 3 of this Agreement, a total of Fifty-five Thousand Dollars ($55,000.00) in the respective proportions set forth in the first sentence of this Section 4. Thereafter, each party hereto shall pay Vista, as administrator, for the engineering services described in para- graphs (5) through (7) of Section 3 of this Agreement, upon written demands forwarded to them by Vista. Such demands will be forwarded and such payments shall be made at such times as will enable Vista to pay for the costs of such services in accordance with the contract with Brown and Caldwell. Vista shall be strictly accountable to all the parties hereto for all funds received by it pursuant to this Agreement, and shall maintain adequate records of all receipts and disbursements pursuant hereto Section 5. Status of Leucadia and Encinitas, and Ownership Rights 15 As provided in Section 1 of the Fifth Supplement, Leucadia and Encinitas have become parties to the agreements described in recitals paragraphs A(l), (3), (5), (6), (7), (8), (12), (13), (14), (17), (18) and (19) of this Agreement, shall be bound thereby, and shall have all the benefits thereof, and notwith- standing the provisions of Section 9 of the Fifth Supplement, upon completion of the Unit I Enlargement and the Unit J Extension provided for by the Fifth Supplement, and the Phase IIA Expansion 24 I provided for by the Sixth Supplement, and the payment by all 1 j 251 parties hereto of the amounts required to be paid by the provi- 26 27 28 sions of both such supplements, each party hereto shall have capacity rights in Unit I to the extent set forth in the Sixth Supplement, and capacity rights in Unit J to the extent set _ 7 _ 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 forth in the Fifth Supplement, and in addition thereto, each shall own and hold title to those units provided for by the Basic Agreement as by the agreements set forth in Recitalii portions that they have capacity rights ownership and capacity rights in Unit I PARTY Vista Carlsbad Buena San Marcos Leucadia Encinitas TOTAL : and in Unit J, shall be Vista Carlsbad Buena San Marcos Leucadia Encinitas TOTAL : Page two of Exhibit hereby rescinded to the table. 11 * OWNERSHIP AND AFTER PHASE MGD 4.05 3.43 0.62 2.40 2.25 1.00 13.75 as follows: 6.34 10.89 4.94 6.33 6.33 3.17 38.00 of the Joint Sewer System supplemented and amended A above, in the same pro- in such units, i.e. shall be as follows: CAPACITY RIGHTS IIA EXPANSION Percentage 29.46% i 24.95% 4.51% 17.45% 16.36% 7 . 27% I 100.00% 16.67% 28.66% 13.00% 16.67% 16.67% 8 . 33% 100.00% "B" attached to the Fifth Supplement is extent it is in conflict with the above - 8 - 1 Section 6. Settlement of Dispute 2 There are disputed questions of law and fact with regard to the proper interpretation of the language of Section 4(F) of the Fifth Supplement as acknowledged in Section 6(B) of the Sixth Supplement, and the parties hereto, in order to avoid the time, expense and risks of litigating or arbitrating said dispute, have settled same among themselves. As a result of such settlement, the parties hereto hereby agree that Section 4(F) of the Fifth Supplement is hereby amended to read as follows: 10 "(F) Upon completion of construction of the Unit I 11 Enlargement and the Unit J Extension, it is estimated that 12 the portion of the buy-in monies paid by Leucadia and 13 Encinitas pursuant to this Agreement (the Fifth Supplement) in excess of the amount required to pay the other parties' shares for constructing (including engineering design fees 16 and inspection) the Unit I Enlargement and the Unit J 17 Extension, will aggregate approximately $513,600, of which 18 i $323,000 is owned by and shall be credited respectively to 19 Vista, Carlsbad, Buena and San Marcos, as follows: 20 Vista $160,000 21 Carlsbad 128,000 22 Buena 10,000 23 San Marcos 25,000, 24 and may be utilized by each of them, as payments are actually! i 25 jj received from Leucadia and Encinitas, to pay for their res- 26 pective shares of the cost of construction of expansions 27 (after Phase II) of Unit I. 28 The balance of such estimated excess, $190,600, is - 9 - 1 2 3 4 5 6- 7 8 9 10 11 12 13 14 115 16 17 18 19 20 21 22 23 24 25 26 27 28 owned by and shall be credited respectively to each of the parties hereto in the amounts and in accordance with the percentages thereof, as follows: Amount Vista Carlsbad Buena - San Marcos Leucadia Encinitas $ 56,000 47,600 8,600 33,300 31,200 13,900 Percentage 29.46% 24.95% 4.51% 17.45% 16.36% 7.27% TOTAL: $190,600 100.00%; and shall be held in trust by Vista in a capital improvement fund to be used for enlargements or improvements, or both, to Unit I or Unit J after Phase II. If, after actual com- pletion of the construction of the Unit I Enlargement and the Unit J Extension, it is determined that the actual bal- ance of such excess of buy-in monies paid by Leucadia and Encinitas is in an amount other than said sum of $190,600, then the actual balance of such excess over said sum of $323,000is owned by and shall be credited respectively to each of such parties in the same proportions as was said sum of $190,600, and similarly held in trust for such purposes." As a further result of such settlement, Section 6(B) of the Sixth Supplement is hereby rescinded to the extent that it is in conflict with Section 4(F) of the Fifth Supplement, as amended hereby. Except as expressly set forth herein, each of the parties - 10 - 4 5 6 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 hereto hereby releases each of the other parties hereto from any and all claims each such party may have to buy-in monies paid by Leucadia or Encinitas pursuant to the provisions of the Fifth Supplement. Section 7. Joint Advisory Committee Section 10 of the Fifth Supplement is hereby rescinded, and Section 17.2 of the Basic Agreement, as amended by Section 14 of |the Third Supplement, is hereby further amended to read as follows: "Section 17.2. JOINT ADVISORY COMMITTEE Vista, Carlsbad, Buena, San Marcos, Leucadia and Encinitas hereby agree that there shall be appointed an advisory committee consisting of two representatives of each party to this agreement appointed by the governing body of such party. Such governing body shall also appoint an alternate for each such representative who shall act as a representative of the party in the temporary absence of the representative. The repre- sentatives and alternates so appointed may, but need not, be members of the governing body of the party they represent. Said committee shall be known as the 'Joint Advisory Committee' and its powers, duties and functions shall be as follows: 1. To review the operation and maintenance of the Joint System, including the cost thereof, and make reports and recommendations to the governing bodies of the parties to this Agreement and to the Operator. 2. Review and make recommendations to the governing - 11 - 1 bodies of the parties to this Agreement with 2 respect to any proposed expansion, enlargements 3 or modifications of the Joint System or any 4 portion thereof. 5 3. To adopt rules and regulations for the place, time 6 i and conduct of its meetings, to elect one of its 7 ! members chairman and appoint a secretary and to 8 cause minutes to be kept of each of its meetings 9 including all actions taken by it. 10 4. To render such reports and recommendations and per- 11 form such other duties relative to the maintenance 12 and operation of the Joint System as may be directed 13 by the governing bodies of the parties to this 1^ Agreement from time to time. 15 The total vote of all members of the Joint Advisory 16 Committee shall be 100%. When voting on a matter involving 17 the treatment plant (Unit I) or the Ocean Outfall (Unit J) 18 each member shall have a percentage of vote equal to one- half of the percentage of capacity of the party he represents 20 in the unit involved. Where a representative of a party to this Agreement is temporarily absent, his alternate shall 22 cast the vote of the absent representative. 23 The recommendations of the Joint Advisory Committee 24 | shall be advisory only. 25 The Administrator shall provide supplies and clerical 26 j and secretarial help for the Joint Advisory Committee, and 27 shall pay each representative (or alternate who attends a 28 | meeting by reason of the temporary absence of a representa- - 12 - 1 tive) an attendance fee of Twenty-five Dollars ($25.00) for 2 each meeting of the Joint Advisory Committee attended, pro- 3 vided that the maximum payable hereunder to any one person 4 is Fifty Dollars ($50.00) for each calendar month. The 5 costs of such supplies and help, and attendance fees, shall 6 constitute a part of the total expense of maintaining and Ij 7 operating the Joint System and shall be paid as hereinafter 8 specified." 9 Section 8. Counterparts 10 This Agreement may be executed in counterparts, and upon 11 execution thereof by all of the parties set forth on page 1 12 hereof, each such counterpart shall be deemed to be an original. 13 IN WITNESS WHEREOF, each party hereto has caused this 14 Seventh Supplement to Basic Agreement to be signed by its res- 15 | pective officials heretofore duly authorized by the legislative 21 22 15 17 18 19 •^"j UL T ^ __r_i_ Chairman 20 bodies thereof. Approved by Resolution No. on VISTA SANITATION DISTRICT By CITY OF CARLSBAD Approved by Resolution No. on 23 i[ By 24i Mayor 25 26 BUENA SANITATION DISTRICT 27 By. 28 Approved by Resolution No. on Clerk, Board of Supervisors - 13 - SAN MARCOS COUNTY WATER DISTRICT 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 Approved by Resolution No. on Approved by Resolution No. on Approved by Resolution No. on By By President Secretary LEUCADIA COUNTY WATER DISTRICT By President By Secretary ENCINITAS SANITARY DISTRICT By President By Secretary - 14 -