HomeMy WebLinkAbout1985-06-18; City Council; 8213; Approval of Final Encina BudgetCmQ)F CARLSBAD - AGENoOlLL °
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TITLE:
APPROVAL OF FINAL ENCINA BUDGET
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CITY ATTY
CITY MGR.
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RECOMMENDED ACTION:
Approve Carlsbad's share of the FY 85-86 Encina Budget by minute motion.
ITEM EXPLANATION;
The JAQ at its meeting of May 22, 1985, approved the FY 85-86 budget and directed
the Manager to forward it to each agency for ratification. The budget was
developed by the Encina Manager and a budget advisory committee. Mayor Casler
represented Carlsbad on the committee.
Carlsbad's share of the budget is $946,240. There is a prior year's carryover
of $135,038 (FY 83/84 audited) and $5,550 for FY 84/85 which will offset some of
these costs. The total requirement, therefore, is $805,652. This is slightly
higher than last year's assessment by $41,288. The Manager's cover letter is
attached and will provide more detailed information.
The JAC did not include the estimated repair costs for reballasting the outfall
line as the detail cost estimates are just being developed. The JAC will review
the proposed reballasting after a wave study analysis being conducted at the
University of Washington. Estimates range from $350,000 to $1,705,000 for the
project. It will be necessary to approve Carlsbad's expenditure at some time in
the future. Carlsbad's share will be $100,000 to $488,000 depending on the
alternative selected. The projected fund balance on 6/30/85 is $1,239,874 and
should be sufficient to cover this one-time cost.
FISCAL IMPACT;
The Sanitation budget for FY 85-86 is as follows:
Encina $ 805,562
City 611.284^
$1,416,846
It is anticipated that our current rates will provide $1,570,000 revenues,
therefore, no rate changes are anticipated. The outfall reballasting can be
covered by current revenues and the fund balance.
EXHIBITS;
1. Exerpts from the JAC Operating Budget.
CITY OF CARLSBAD
BUDGET AND REVENUE RECOMMENDATIONS
1985/86 FISCAL YEAR
DESCRIPTION OR ACCOUNT TITLE
DIRECTORS FEES
SHARE OF UNIT 1
UNIT A
UNIT 8
UNIT C (BUENA VISTA PUMP STA.)
UNIT D
UNIT E
UNIT F
UNIT C (AQUA HED1ONDA PUMP STA.)
UNIT H
UNIT 3 (OUTFALD/CAP. IMP. PROG.
INDUSTRIAL/NON INDUSTRIAL WASTE
SUBTOTAL
Carry Over 1983/84 (Audited)
APPROVEl
1984/85
BUDGET
$ 1,200
780,77*
-0-
-0-
24,793
-0-
1,070
2,562
44,697
3,960
76,22*'
3,000
$938,280
ESTIMATED
ACTUAL
EXPENDITURE!
1984/85
$ 650
780,774
-0-
-0-
20,793
-0-
1,070
2,562
44, 697
3,960
76,224*
2,000
$932,730
DUE TO
(FROM)
AGENCY
RECOMMENDED
BUDGET
1985/86
$ 1,200
838,825
-0-
-0-
25,212
-0-
-0-
-0-
50,003
-0-
25,400
5,600
$ 946 , 740
135,038
Carry Over 1984/85 (Estimated) 5,550
TOTAL $ 805,652
•Adjusted For Leak Contribution
CONTRIBUTION SCHEDULE
1. Operating Fund Payable to Encina »PCF
- Leucadia CWD
2. CORF (Grant Funded) Payable to VSD
- Encina *PCF
3. CORF (Non-Grant Funded) Payable to
Enema WPCF - Leucadia CWD
TOTAL
1ST QUART.
$195,063
-0-
6,350
$201,413
2ND QUART.
$195.063
-0-
6,350
$201,413
3RD QUART,
$195,063
-0-
6,350
$201,413
4TH QUART.
$195,063
-0-
6,350
$201,413
TOTAL
CONTRIBUTIONS
$780,252
-0-
25,400
$ 805,652
Reli 5.ABUDGETI9
ENCINA OCEAN OUTFALL
COMPARISON OF ALTERNATIVES
Alt.
No.Description
Estimated
Construction Cost**
$
5*
Reballasting "ala" San Elijo
to Sta. 27+00
Reballast for 10 year storm
to Sta. 27+00
Reballast for 25 year storm
to Sta. 27+00
Reballast for 50 year storm
to Sta. 27+00
Reballast to Sta. 27+00
without armor rock over top
of pipe
$350,000
$1,200,000
$1,500,000
$1,705,000
$1,400,000
* 3CE Recommendation
**March 1985 Costs (ENR 5300)
JOHN CAROLJLO
PMOCNIX A2 • WALNUT CREE*. G»
FOUNTAIN VAILEV. CA • VI&AUA. CA
TUCSON. A7
3
ENCINA WATER POLLUTION CONTROL FACILITY
6200 Avenida Encinas
Carlsbad, CA 92008-0171
Telephones (619) 438-3941
May U, 1985 (619)438-3954
Ref: 5. A 845
TO: Joint Advisory Committee (JAC) Members
SUBJECT: 1985/86 Fiscal Year Budget Recommendations
Enclosed are the 1985/86 Budget Recommendations for the Encina Joint System.
This Budget has been reviewed in detail by the Budget Advisory Committee and is
recommended for approval.
The 1985/86 Budget totals $6,560,807 of which $4,035,027 is related to the
operation and maintenance of the Joint System and $2,525,780 is for capital
projects. The source and application of the budgetary dollar is depicted in the
following charts.
C.O.R.F.
Carryforward3-
Mlscellaneous
/" Income
2%
88%
Agency
Contributions
Phase III/IIIA
28%
/ Capital
/ Improvement
• Program 62%
Joint
Operating
TOTAL REVENUES
$6,560,807
TOTAL EXPENDITURES
$6,560,807
SERVING THE CITY OF VISTA. CITY OF CARLSBAD. BUENA SANITATION DISTRICT. SAN MARCOS COUNTY WATER DISTRICT.
iMtaGi
Joint Advisory Committee
May U, 1985
Page 2
REVENUE
The three major elements of the Revenue Budget are briefly discussed:
Local Agencies Contributions - This revenue is collected from each of the six
member agencies on a quarterly basis to pay for the joint operation and main-
tenance (O&M) plus the costs of the capital related projects. The individual
agency's Unit I (Plant) O&M contribution is based on the Revenue Plan and
Program as required under the Federal and State grant guidelines. The indivi-
dual agency's capital related contribution is based on the agency's percentage
ownership of the Joint System Unit for which the project is being undertaken.
Capital Outlay Revolving Fund (CORF) Carryover - The CORF carryover are funds
remaining in the Phase III/IHA construction fund including accrued interest
which would be used to pay for any of the outstanding Phase III/IHA project
expenses.
Interest and Miscellaneous Revenue - This revenue refers to interest accrued
primarily to the Unit I (Plant) Budget account and revenue derived from sources
such as septage hauler fees, sale of salvage material, etc.
EXPENDITURES
There are three major areas of Expenditures.
Joint Operating - The requirements for this item are for the operation and main-
tenance of the Joint System. The Joint System consists of:
Unit B
Unit C
Unit D
Unit E
Unit F
Unit G
Unit H
Uniy I
Unit J
Gravity Trunk Line
Buena Vista Pump Station
Forcemain
Gravity Trunk Line
Gravity Trunk Line
Aqua Hedionda Pump Station
Gravity Trunk Line
Plant
Ocean Outfall
Units I and J operating expenses are shared by all six (6) member agencies.
Units B through H expenses are shared only by Carlsbad and Vista.
Phase III/IIIA This expenditure is for the completion of the Phase III
related contract work. Included under this expenditure is pre-audit assistance
in preparation for the grant audits. Also included is an amount to correct work
performed under Contract 3fk in addition to legal, expert testimony, etc. expen-
ses to recover the correction costs if necessary.
ENCINA WATER POLLUTION CONTROL FACILITY
6200 Avenida Encinas, Carlsbad. CA 92008-0171 (619) 438-3941, (619) 438-3954
joint Advisory Committee
May U, 1985
Page 3
Capital Improvement Budget - This expenditure refers to capital related projects
exclusive of the Phase HI/III A Project. The reballasting of the inshore por-
tion of the ocean outfall has been included at $1,700,000 pending the results of
the wave tank studv. Also the second phase to the solids management study has
been estimated at $100,000 pending the completion of Phase I scheduled for this
July. A Facility Replacement Reserve for Unit 1 (Plant) is identified under the
Capital Improvement Budget. However, no Capital Replacement Reserve is
collected by Encina. Reserves are accumulated by the individual member agencies
according to their own policies.
Included under the Capital Improvement Budget are 5 year and 20 year. projections
to assist the member agencies in projecting future financing needs.
DISCUSSION
The Proposed FY 85/86 Budget total of $6,560,807 represents an increase of
$2,100,000 over FY 84/85. Approximately 90% of this increase results from the
capital related projects - outfall ballast repair, solids management, Phase
III/lllA completion.
The Unit I (Plant) Operating Budget represents an increase of 10* or approxima-
tely $300,00 over FY 84/85. It is based on a projected flow increase of 0.7 MGD
(6%) for a total flow of 14 MGD with a solids loading equivalent to 15 MGD.
The major increases occur in the following areas:
Salaries, Wages and Benefits (+$240,000) - Resulting from an
additional 41 positions and a range adjustment pool.
Contract Services (+$16,000) - These services cover manpower
needs at Encina that can be more effectively performed by
private business because of special skills and equipment
Repair and Maintenance (+55,000) - This increase shows an
expected trend as the plant enters its first full year out
of warranty.
Ocean Monitoring (+50,000) - This increase represents the
expected level of ocean monitoring as a secondary plant.
If the waiver is granted additional monies have
idenitified in the contingencies.
Insurance (+$48,000) - The increase may actually be more
and reflects the instability of the insurance industry.
Decreases in the chemical (-$15,000) and Utility (-$35,000) accounts and
increases in the offsets and revenues, particularly the septage hauler income
(+$36,000), have offset some of the increases in the Unit I Budget.
!••»«§
ll" • *•" O»»o Counlv
ENCINA WATER POLLUTION CONTROL FACILITY
6200 Avenida Encinas, Carlsbad. CA 92008-0171 (619) 438-3941, (619) 438-3954
Joint Advisory Committee
May IV, 1985
Page 4
GENERAL COMMENTS
The major projects facing Encina during the coming year will be the grant audit
process, reballasting the ocean outfall and beginning Phase II of the Solids
Management Study.
The past year provided some interesting scenarios for staff at Encina. This
first real building year was very successful, as illustrated by the Plant of the
Year Award, the first major wastewater plant in the nation to be granted a
301 (h) waiver, and the beginning of Phase I of the Solids Management Study. But
the year was not without its problems. All departments realized frustrating
areas ranging from debugging computer systems in the Administration and
Maintenance Departments to dealing with staff limitations resulting from turn-
overs, job and non-job related injuries and realization of understaffing in some
areas. Overall, the experience has provided us with a chance to test our mettle
and generally be more prepared for future operations. We will continue to work
toward the ultimate goal of this facility, the safe and economical disposal of
over 5 billion gallons of wastewater per year.
Very truly yours,
Richard W. Graf
General Manager
RWGrmaj
4-'
ENCINA WATER POLLUTION CONTROL FACILITY
6200 Avenida Encinas, Carlsbad, CA 92008-0171 (619) 438-3941. (619) 438-3954