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HomeMy WebLinkAbout1985-06-18; City Council; 8213; Approval of Final Encina BudgetCmQ)F CARLSBAD - AGENoOlLL ° AB#_ MTG..6/18/85 DFPT U/M TITLE: APPROVAL OF FINAL ENCINA BUDGET DFPT CITY ATTY CITY MGR. \)tf> O § uz i 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