HomeMy WebLinkAbout1981-07-21; City Council; 6682; Encina expansion agreement supplementCITY OF CARLSBAD
AGENDA BILL NO.
DATE: Julv 21> 1981
DEPARTMENT:DEVELOPMENTAL SERVICES
Initial
SUBJECT:17th SUPPLEMENT TO BASIC AGREEMENT (ENCINA)
PHASE III-A EXPANSION
STATEMENT OF THE MATTER
The Encina Joint Powers (JAC) proposesto expand the capacity of the Encina Water Pollution
Control Facility (EWPCF) from 18.0 million gallons per day (mgd) to 22.5 mgd. If approved,
the expansion would be complete in 1983 at the same time the Phase III project, Carlsbad
would pay 25.4% of the cost and receive' 25.4% of the capacity (1.14 mgd).
The 17th Supplement authorizes the Leucadia County Water District to proceed with the design,
environmental and regulatory clearances, and with construction. Funds will be included as
part of the annual JAC budget. •
Provisions of the 17th Supplement modify the 10th Supplement so that the Encinitas Sanitary
District retroactively "buys-in" to the Phase III project. They will pay 5.56% of all non-
grant funded Phase III costs. That percentage is equal to their ownership upon completion
of Phase III and matches their ownership in Phase III-A.
ENVIRONMENTAL REVIEW -..-..
The environmental review on this project will be performed by the lead agency, the Leucadia
County Water District.
FISCAL IMPACT
Carlsbad's share of project costs ($600,000-) is approximately $150,000. The Sewer
Construction Fund year end balance is $419,394. Revenue for FY 81-82 is projected at
$1,552,000, making a total of $1,971,394, Anticipated Capital Expenditures at EWPCF,
including this change, total $972,003 for FY 81-82. Staff will return with an Agenda
Bill modifying Council appropriations to include transferring necessary funds -for the
Phase III-A project to a new account.
RECOMMENDATION
That the City Council approve Resolution No.
the 17th Supplement on behalf of the City.
ATTACHMENTS
authorizing the Mayor to execute
1. Resolution No.
2. Transmittal Letter of July 2, 1981.
APPROVED
w
RESOLUTION NO. 6615
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, AUTHORIZING THE EXECUTION OF
THE SEVENTEENTH SUPPLEMENT TO THE BASIC
AGREEMENT FOR ENCINA JOINT SEWER SYSTEM TO
PROVIDE FOR INCREASING CAPACITY OF SAID
SYSTEM FROM 18.0 MGD TO 22.5 MGD AND
APPORTIONING COSTS OF PHASE 111 CONSTRUCTION
WHEREAS, the VISTA SANITATION DISTRICT, CITY OF CARLSBAD,
LEUCADIA COUNTY WATER DISTRICT, SAN MARCOS COUNTY WATER DISTRICT,
BUENA SANITATION DISTRICT, and ENCINITAS SANITARY DISTRICT are
parties to a Joint Powers Agreement, ("BASIC AGREEMENT"), which
provides for the operation and maintenance of a joint sewer
system commonly known as the ENCINA WATER POLLUTION CONTROL
FACILITIES, (EWPCF); and
WHEREAS, from 1965 to present the design capacity of the joint
sewer system has been increased from 3.75 million gallons per day
(MGD) average daily flow (ADF) to 13.75 MGD ADF; and
WHEREAS; an expansion of Unit I of the EWPCF, known as Phase
III Enlargement and Upgrading, is currently under construction
providing for an increase in capacity from 13.75 MGD to 18.0 MGD;and
WHEREAS, the members of the Joint Powers have agreed by virtue
of a Sixteenth Supplement to the "Basic Agreement" that the rerated
capacity of the EWPCF is 16.0 MGD pending completion of Phase 111
Enlargement and Upgrading; and
WHEREAS; the EWPCF is presently capable of treating an average
daily wastewater flow of 16.0 MGD, as well as treating solids from
20.9 MGD of wastewater flow. The peak wet weather flow capacity of
said facility is 34.8 MGD; and
WHEREAS, Phase 111 Upgrading and Enlargement is scheduled to
be completed in late 1982, at which time the present projection of
population for the area served by the EWPCF will require further
expansion of said facility; and
WHEREAS, it is desirable to increase the capacity of the EWPCF
(Unit I) from 18.0 MGD to 22.5 MGD to meet future flowage demands
of the parties hereto; and
WHEREAS; it is desirable that the construction of the facilities
for increasing capacity from 18.0 MGD to 22.5 MGD be made con-
currently with Phase 111 Upgrading and Enlargement in order that
cW" ^the future costs of: such construction, ancr time required for such
construction, be substantially lessened; and
WHEREAS, it is necessary to provide for the apportionment among
members of the Joint Powers of ownership rights in the increased
capacity; and
WHEREAS, it is necessary to provide for apportionment of Phase
111 costs of construction so as to include Encinitas and to provide
for compensation to Encinitas by reason of reduced percentage
of ownership upon completion of Phase 111; and
WHEREAS, it is necessary to provide for apportionment among
the parties to the Joint Powers Agreement of the costs of, and
attendant to, the planning, design, and construction of facilities
for such increased capacity to 22.5 MGD; and
WHEREAS, the Joint Advisory Committee to all parties to the
"Basic Agreement" has approved the proposed Seventeenth Supplement
to the "Basic Agreement"; and
WHEREAS, it is in the best interest of this City to execute
said Seventeenth Supplement; and
WHEREAS, a copy of the Seventeenth Supplement to the "Basic
Agreement" is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Carlsbad, as follows:
Section 1: That the Mayor of this City be, and is, hereby
authorized to execute the Seventeenth Supplement
to the "Basic Agreement" for the Encina Joint
Sewer System.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad on the 21st day of July ,
1981, by the following vote, to wit:
AYES 5 NOES 0 Absent 0
RQNAID C. PACKARD,
ATTEST:
, .ALETHAL. RAUIENKRANZ, City
SEVENTEENTH SUPPLEMENT TO :IC AGREEMENT
PROVIDING FOR INCREASING CAPACITY OF ENCINA
WATER POLLUTION CONTROL FACILITIES FROM 18.0
MGD TO 22.5 MGD AND FOR APPORTIONMENT OF
INCREASED. CAPACITY AND AMENDING THE TENTH
SUPPLEMENT TO "BASIC AGREEMENT" TO DELETE
APPORTIONMENT FOR SECONDARY TREATMENT AND
ADDING PROVISIONS FOR APPORTIONMENT OF PHASE
III COSTS OF CONSTRUCTION
This Seventeenth Supplement is made and entered into this
day of , 1981 by and among: VISTA SANITATION
DISTRICT (VISTA), a County Sanitation District; CITY OF CARLSBAD
(CARLSBAD), a General Law City; BUENA SANITATION DISTRICT (BUENA),
a.County Sanitation District; 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.
A. VISTA, CARLSBAD, BUENA, SAN MARCOS, LEUCADIA and ENCINITAS
own and operate the ENCINA WATER POLLUTION CONTROL FACILITY
and OCEAN OUTFALL (and related facilities); hereafter re-
ferred to as EWPCF.
B. By an agreement between VISTA and CARLSBAD, dated July 13,
1961, entitled "BASIC AGREEMENT BETWEEN VISTA SANITATION
DISTRICT AND THE CITY OF CARLSBAD FOR ACQUISITION AND
CONSTRUCTION OF A JOINT SEWER SYSTEM", VISTA and CARLSBAD
became the owners and operators of the EWPCF.
C. By virtue of Supplements and Amendments to the aforesaid
"BASIC AGREEMENT", SAN MARCOS, LUECAD1A, BUENA, and
ENCINITAS became parties to the "BASIC AGREEMENT".
D. At the time said "BASIC AGREEMENT" was entered into, the
EWPCF was designed to have a minimum capacity to receive,
treat, and dispose of 3.5 million gallons average daily
flow of sewage; and upon commencement of operation of
the EWPCF in September 1965, it provided primary treatment
for ADWT capacity of 4.50 MGD.
E. By virtue of an expansion to Unit I (the treatment plant)
of the EWPCF known as Phase II Enlargement, the capacity
of said Unit 1 was enlarged from 6.75 MGD to 9.75 MGD, and
by a further expansion to said Unit I, known as Phase IIA
Enlargement, the capacity of said EWPCF was increased from
9.75 MGD to 13.75 MGD.
F. ^^« expansion of Unit I of the E^^jF, known as Phase III
enlargement, is currently under construction providing for
an increase in capacity from 13.75 MGD to 18.0 MGD.
G. The parties hereto have'agreed by virtue of a Sixteenth
Supplement to the "BASIC AGREEMENT" that the rerated
capacity of the EWPCF is 16.0 MGD pending completion of
Phase III Upgrading and Enlargement.
H. The EWPCF is presently capable of treating an average daily
wastewater flow of 16.00 MGD, as well as treating solids
from 20.9 MGD of wastewater flow. The peak wet weather
flow capacity of said facility is 34.8 MGD.
I. Phase III., Upgradi-ng and Enlargement is scheduled to be com-
pleted in late 1982 at which time the present projection of
population for the area served by the EWPCF will require
further expansion of said facility.
J. It is desirable to increase the capacity of the EWPCF (Unit
I) from 18.0 MGD to 22.5 MGD to meet future flowage demands
of the parties hereto.
K. 'It is desirable that the construction of the facilities for
increasing capacity from 18.0 MGD to 22.5 MGD be made con-
currently with Phase III Upgrading and Enlargement in order
that the future costs of such construction and time required
for performance thereof be substantially lessened.
L. It is necessary to provide for the apportionment among the
parties hereto of ownership rights in the increased capacity.
M. It is necessary to provide for the apportionment among the
parties hereto of the costs necessary for, and attendant to,
the planning, design, and construction of facilities for
such increased capacity to 22.5 MGD.
N. The Seventeenth Supplement to the "BASIC AGREEMENT" is made
pursuant to the provisions of Article I, Chapter 5, Division
7, Title I, of the Government Code of the State of California
commencing with Section 6500, relating to the joint exer-
cise of forces common to all public agencies; in this case,
being all of the parties hereto which is authorized to
— 2—
with the Other pursuan-^"*jp such provisions.
O. It is necessary to provide for apportionment of Phase III
costs of construction so as to include ENCINITAS and provide
for compensation to ENCINITAS by reason of reduced percentage
of ownership upon completion of Phase III.
NOW, WHEREFORE, THE PARTIES AGREE AS FOLLOWS:
PHASE 111A ENLARGEMENT OF UNIT I
Section 1. The ENCINA WATER POLLUTION CONTROL FACILITY (Unit I) shall be
enlarged and improved to meet the future demands of the parties
hereto and environmental protection requirements of applicable
regulatory bodies and/or agencies. Said improvement and en-
largement shall be designated as Phase IIIA Enlargement and
shall be hereafter referred to by such designation.
Section 2. The Phase IIIA Enlargement shall be a joint project of VISTA,
CARLSBAD, BUENA, SAN MARCOS, LEUCADIA and ENCINITAS. LEUCADIA
is hereby appointed as administrator of the joint project and
is authorized upon approval of the 1981-1982 Budget for the
EWPCF to contract with such consulting engineers as necessary
for engineering services hereinafter provided, and to prepare
and file on behalf of the parties hereto appropriate applica-
tions and other documents, for approval of the joint project
by any and all federal, state, county and/or ci-ty governments,
or agencies, having jurisdiction over the joint project, or
and part thereof pursuant to applicable law or regulation.
LEUCADIA shall also cause to be prepared, by a contract with
qualified engineers, an Environmental Impact Report for the
Phase IIIA Enlargement as the lead agency pursuant to the
provisions of the Public Resources Code of the State of
California, Section 21165.
Section 3. ENGINEERING SERVICES
The engineering services to be furnished by the engineers
pursuant to the contract authorized hereunder shall include
the following
1. Environmental Impact Report, including public hearings
-3-
.all supplemental reports as n,j be required.
(2.) Reports requiring services of licensed engineers as are
necessary for submission to federal and state agencies as a
condition to approval of -the joint project.
(3.) Development and preparation of such additions, supple-
ments, and/or modifications to the "Financial Plan and
Revenue Program" developed for the Phase III Upgrading and
Enlargement as are necessary to comply with applicable state
and federal requirements.
(4.) Design services, including preparation of plans and
specifications and office engineering during construction.
(5.) Preparation of such modifications to the Phase III
. Project Report as are necessary by reason of the increased
capacity to be created by Phase IIIA.
(6.) Preparation of modifications to the Phase III operation
and maintneance manuals as are necessary by reason of the
increased capacity provided for in this supplement to the
"BASIC AGREEMENT".
(7.) Miscellaneous engineering services.
Section 4. PAYMENT OF ENGINEERING SERVICES
Each of the parties hereto shall advance to LEUCADIA the
costs of such engineering services contracted for by
LEUCADIA, as provided herein, in the following proportions:
VISTA 30%, CARLSBAD 25.40%, BUENA 4.59%, SAN MARCOS 17.78%,
LEUCADIA 16.67%, and ENCINITAS 5.56%. Provided, however,
the ultimate liability of the parties hereto, for the costs
of such engineering services shall be equal to the total
costs of engineering services multiplied by the respective
percentages of capacity each party will be entitled to in
Unit I (Treatment Plant) at the conclusion of Phase IIIA
Enlargement. The 1981-1982 ENCINA WATER POLLUTION CONTROL
FACILITIES BUDGET shall include an amount estimated by the
parties hereto at the time of approving such budget as
necessary to pay the cost for all engineering services
described above in Section 3 hereof. Each party hereto
. ,pay to LEUCADIA as administi^^or for said engineer-
ing services upon written demands forwarded to them by
LEUCADIA. Such demands will be forwarded and such payments
shall be made at such times as will enable LEUCADIA to pay
for the costs of such engineering services in accordance with
the contracts between LEUCADIA and the engineering firm or
firms as authorized in Section 3 above herein. LEUCADIA shall
be strictly accountable to all parties hereto for all funds
received by it pursuant to this agreement, and shall maintain
records of all receipts and disbursements pursuant hereto.
Section 5. Upon completion of the engineering services set out in
Section 3 above, and the approval thereof by the parties
hereto, LEUCADIA shall contract with such contractors as are
necessary for the construction of the Phase IIIA Enlargement
provided for herein. It is understood and agreed that there
are not presently available any grants-in-aid under state or
federal law, or regulation, and that the costs of the Phase
IIIA Enlargement shall be borne solely by all parties hereto.
The respective liability of each party hereto for its share of
the construction costs shall be the same percentage thereof
as provided above in Section 4 for the apportionment of costs
for engineering services. • The '1982-1983 ENCINA WATER POLLUTION
CONTROL FACILITIES BUDGET shall include an amount estimated
by the parties hereto at the time of approving such budget, as
necessary to pay construction costs of Phase IIIA described in
this supplement. Each party hereto shall pay to LEUCADIA, as
administrator, for construction costs as adopted in said
budget upon written demand forwarded to them by LEUCADIA.
Such demands will be forwarded and such payments shall be
made at such time as will enable LEUCADIA to pay for the costs
of construction in accordance with the construction contract
or contracts entered into between LEUCADIA and the contruc-
tion contractor or contractors. LEUCADIA shall be account-
able to the parties hereto for all funds received by it and
shall maintain records of all receipts and disbursements to
— 5 —
Section 6,
Section 7,
extent and degree as pro-^jjed above in Section 4 for
^engineering funds. It is further agreed that in the event
any grants-in-aid, state or federal, become available and
are received as and for assistance in either the engineering
or construction costs of Phase IIIA Enlargement, the costs to
each party hereto shall be reduced by the percentage of such
grants-in-aid funds as each party's ownership interest in Unit
I (Treatment Plant) bears to the total funds so received.'
OWNERSHIP RIGHTS
Upon completion of the Phase IIIA Enlargement of Unit I
(Treatment Plant) and the payment by all parties hereto of
the amount required to be paid pursuant to the provisions of
this Seventeenth Supplement, each party hereto shall have
capacity rights in Unit I to the extent as hereinafter set
forth. Upon completion of Phase IIIA Enlargement, the res-
pective ownership and capacity rights in Unit I shall be as
follows:
OWNERSHIP AND CAPACITY RIGHTS AFTER PHASE IIIA ENLARGEMENT
PARTY
VISTA
CARLSBAD
BUENA
SAN MARCOS
LEUCADIA
ENCINITAS
MGD
6.75
5.716
1.034
4.00
3.75
1.25
PERCENTAGE
30.00
25.40
4.59
17,78
16.67
5.56
AMENDMENT OF TENTH SUPPLEMENT TO "BASIC AGREEMENT" TO DELETE
APPORTIONMENT DF COSTS FOR CONSTRUCTION OF SECONDARY TREATMENT
AND TO PROVIDE FOR APPORTIONMENT OF THE COST OF PHASE III
CONSTRUCTION.
The Tenth Supplement to the "BASIC AGREEMENT" is hereby amended
as follows:
(a) Sections 5,6, and 7, respectively, of the Tenth
supplement to the "BASIC AGREEMENT" are hereby
deleted in their entirety.
(b) There is hereby added to the Tenth Supplement to
the "BASIC AGREEMENT" a new section 5 which reads
as follows:
L,/ .!LSE^TION 5, APPORTIONMENT.,^"' COST OF CONSTRUCTION OF
PHASE III.
The costs of construction of Phase III described in
this Tenth Supplement, exclusive of state and federal
grants, shall be shared by the parties hereto in the
percentages as follows:
PARTICIPANT PERCENTAGE
VISTA 30.00
CARLSBAD 25.40
BUENA 4.59
SAN MARCOS 17.78
LEUCADIA 16.67
ENCINITAS 5.56"
(c) Sections 8, 9, 10, 11, and 12 respectively, of the
Tenth Supplement are hereby renumbered as sections 6,
7, 8, 9, and 10 respectively.
(d) Section 6 of the Tenth Supplement, as renumbered, is
hereby amended to read as follows:
"SECTION 8, OWNERSHIP AND CAPACITY RIGHTS AFTER
COMPLETION OF PHASE III.
Upon completion of Phase III Enlargement wherein and
whereby Unit I will be enlarged from 13.75 MGD to 18.0
MGD, each of the parties hereto shall have ownership
and capacity rights in Unit I and Unit J as follows:
UNIT I
PARTY
VISTA
CARLSBAD
BUENA
SAN MARCOS
LEUCADIA
ENCINITAS
PARTY
VISTA
CARLSBAD
BUENA
MGD
5.40
4.56
0.82
3.22
3.00
. 1.00
UNIT J
MGD
6.34
10.89
4.94
PERCENTAGE
30.00
25.40
4.59
17.78
16.67
5.56
PERCENTAGE
16.67
28.66
13.00
L, PARTY MGD 1 PERCENTAGE^•r — \tfff —
SAN MARCOS 6.33 16.67
LEUCADIA 6.33 16.67
ENCINITAS '3.17 8.33"
(e) Section 7 of the Tenth Supplement as renumbered
is hereby amended to read as follows:
''SECTION 7 , REIMBURSEMENT TO ENCINITAS FOR REDUCTION
IN OWNERSHIP IN SEDIMENTATION TANKS AND LAND.
Upon completion of Phase III, all parties to this
agreement, except ENCINITAS, shall reimburse Encinitas
Sanitary District for its reduction of ownership after
completion of Phase III, in the sedimentation tanks
and land. The manner in which the value of reim-
bursement shall be determined is as follows:
1. The book value of the land and Unit I as of June
30, 1980 shall first be determined; and
2. The value determined pursuant to (I.) above, shall
then be multiplied by the percentage of reduction,
3. The amount determined pursuant to (1.) and (2.) above shall be
apportioned among all members, except ENCINITAS, based on each
such members ownership of the book value of the land and Unit
I upon completion of Phase III project."
The -.above reimbursement is necessary to conpensate ENCINITAS for
its reduction in percentage of ownership from 7.27% in the pre
Phase III Unit I to 5.56% in the post Phase III Unit I.
Section 8. LIMITATION UPON AUTHORITY OF LEUCADIA TO CONTRACT
Upon the unanimous written approval by all members of the
ENCINA JOINT POWERS ADVISORY COMMITTEE of the engineering
and design authorized above in Section 3, and subject to the
limitations in the Budget of the EWPCF for the fiscal years
1981-1982 and 1982-1983, LEUCADIA shall be, and is hereby
authorized to enter into contracts with engineers and con-
struction contractors as are necessary to complete the Phase
IIIA Enlargement, without further authorization by the parties
hereto. Provided, however, the authority of LEUCADIA to
enter into such contracts without the need for further
=.,ii-hr.ir.-i vati on is limited by the express condition precedent
w-^to the exercise of such authority**^that the total cost for
completion of Phase IIIA shall not exceed the aforesaid
amounts established in the 1981-1982 and 1982-1983 Budgets
of the EWPCF for Phase I1IA Enlargement. Provided, further,
that in the event the consulting engineer's estimate for
engineering services for Phase IIIA Enlargement exceed the
amount budgeted therefor or, in the event that the construc-
tion costs for completion of Phase IIIA as evidenced by
the lowest responsible bids for said construction exceed
the amount budgeted therefor, then and in that event,
LEUCADIA shall enter into no contract in connection with
said Phase IIIA without the prior written approval of the
parties hereto.
Section 9. COUNTERPARTS.
This agreement may be executed in counterparts, and upon
execution thereof by all of the parties set forth on Page 1
hereof, each counterpart shall be deemed to be an original.
IN WITNESS WHEREOF, each party hereto has caused this SEVEN-
TEENTH SUPPLEMENT TO THE "BASIC AGREEMENT" to be signed by its
respective officials heretofore duly authorized by the legislative
bodies thereof.
APPROVED BY RESOLUTION: NO ON_
VISTA SANITATION DISTRICT: By
APPROVED BY RESOLUTION: N0_ 6615 ON July 21. 1981
CITY OF CARLSBAD: By ^t~ffS
A f ) . t RONALD C. PACKARD, Mayor
ATTEST: fdl.H^ -j\. _ -CITY CLERK V
APPROVED BY RESOLUTION: NO ON_
BUENA SANITATION DISTRICT: By ^
APPROVED BY RESOLUTION: NO ON_
SAN MARCOS COUNTY WATER DISTRICT: By
By
APPROVED BY RESOLUTION: NO ON
LEUCADIA COUNTY WATER DISTRICT: By
By
APPROVED BY RESOLUTION: NO ON
ENCINITAS SANITARY DISTRICT: By
By
ROY H. GANN
ATTORNEY AT LAW
333 SOUTH JUNIPER, SUITE 214
POST OFFICE BOX 788
ESCONDIDO. CALIFORNIA 92025 AREA CODE 714
TELEPHONE 743-3022
July 2, 1981
TO ALL MEMBERS OF
ENCINA JOINT POWERS
Dear
Enclosed please find a counterpart of the Seventeenth Supplement as
last amended, and a Resolution proposed for adoption by each member
agency.
In order to obviate unnecessary research and to assist in bringing
each member current on the matter, a brief history of the supplement
is submitted.
The first draft of the Seventeenth Supplement provided for reim-
bursement by Encinitas upon completion of Phase 111, for 0.25 MGD
secondary treatment. Some of the members were in complete accord as
to such provisions. Almost simultaneously with such discord, Encinitas
expressed an intent to participate in Phase 111 and 111A. A second
draft of the Seventeenth Supplement was prepared and sent to all
members. Section ~T) of that draft provided for reimbursement to }
Encinitas for its reduction in ownership from 7.277> presently owned,
to 5.5670 which it will own upon completion of Phase 111 and 111A.
Promptly upon distribution of the second draft, a suggestion was
submitted by a member agency that if more definitive criteria were
used for the reimbursement to Encinitas, and corresponding changes
were made in the Tenth Supplement, such changes would tend to make
the Supplement easier to understand. Additionally, future readers of
the document would have a better understanding of the rights of the
parties and the basis therefor.
Accordingly, inasmuch as Encinitas desires to share in Phase 111,
the existing provisions of the Tenth Supplement (Sections 5,6,and
7,) relating to apportionment of costs for secondary treatment became
surplusage. Therefore, the Seventeenth Supplement as presently written
deletes those sections and adds a new Section 5 providing for apport
ionment of the Phase 111 construction costs in the same percentage
As the member's ownership upon completion of Phase 111.
o
TO ALL MEMBERS OF
ENCINA JOINT POWERS
JULY 2, 1981
Page two
Also, in that Encinitas will own 5.567 of the facilities upon
completion of Phase 111, as opposed to the present 7.277, in the Pre-
Phase 111 Plant, it was necessary to provide an eouitable method
of payment for such reduced ownership. In order to simplify that
procedure, and use established facts, the value of Unit I and the
land on June 30, 1980 is used in the enclosed supplement.
The reason therefor is that an auditor's report is available for
values on that date. The foregoing explains the changes made in
Section 7 of the Tenth Supplement (previously Section 9).
In addition to the above, it was necessary to make three minor
changes in Section 8 of the Tenth Supplement to correct the fractions
of ownership for Carlsbad, Buena and San Marcos. The Tenth Supplement
shows the ownership of said entities as being:
Carlsbad: 25.337
Buena: 4.557,
San Marcos: 17.897
According to the Preliminary Phase 111-A Project Report prepared
by Fraser, Wilson & Associates, Page 6-1, the percentages should
be:
CARLSBAD 25.407
BUENA 4. 597>
San Marcos 17.78
The differences are minor. However, the aforesaid report recommended
that the Tenth Supplement be amended to accurately reflect the owner-
ship. Therefore, Section 8 (presently Section 6) of the Tenth
Supplement is amended to make the recommended changes and to bring
the provisions of the Tenth Supplement in accord with the 17th
Supplement.
As a matter of information, Mr Reid and representatives of Encinitas
and Carlsbad were present and participated in the formulation of
the proposed revisions to the 17th Supplement.
In regard to the enclosed resolution, only one change has been made,
namely, we added one recital on the second page (the second Whereas)
to briefly reflect the reimbursement provisions of the Seventeenth
Supplement.
Provided there are any questions or comments, please advise in order
that we may attempt to expeditiously resolve same.
We trust that the resolution, if satisfactory, will be presented
to your governing body for adoption.
Very truly yours,
Roy H. Gann