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HomeMy WebLinkAbout1985-10-15; City Council; 8213-2; Change #2 To Encina Operating BudgetCITQ3F CARLSBAD — AGENDQBILL ARft8213 SUP 2 MTG 10-15-85 DEPT. U / M TITLE: CHANGE #2 TO ENCINA OPERATING BUDGET DEPT. HD.. CITY ATTY CITY MGR! QUJ OG£Q_Q_ O\ ^O OO RECOMMENDED ACTION: Adopt resolution ^cc2£> appropriating $32,930.34 to the Encina Budget to cover the City of Carlsbad's share of reballasting the ocean outfall. ITEM EXPLANATION: The adopted budget for Encina appropriated $805,562 for Carlsbad's share of the operating costs of the treatment plant. A break in the outfall line requires repair. The repair project was approved by the JAC Board and by the City Council on August 6, 1985. At that time the City appropriated $186,290 as the City's share of the estimated cost. The bids came in 26% over the engineer's estimate so additional funds are needed before the contract can be awarded. The JAC Board is recommending approval. FISCAL IMPACT: Carlsbad's share of the work will be $218,930.34. An additional appropriation of $32,830.34 is needed. Funds are available in the Sanitation Fund. After this appropriation $1,181,000 will remain in the fund balance. EXHIBITS: 1. Resolution No. 2. Encina General Manager Memo of September 17, 1985 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 RESOLUTION NO. 8220 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING CHANGE #2 TO THE ENCINA WATER POLLUTION CONTROL FACILITY BUDGET AND APPROPRIATING FUNDS. WHEREAS, The City Council of the City of Carlsbad approved the FY 85-86 Encina operating budget on June 18, 1984, and change #1 on August 6, 1985. WHEREAS, the JAC subsequently received bids for the reballasting of the ocean outfall, and; WHEREAS, the JAC recommends a budget of $32,930.34 for Carlsbad's share of the increased project cost. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Carlsbad as follows: 1. The FY 85-86 Encina authorization is increased by $32,930.34 or from $991,852 to $1,024,782.30. 2. The Finance Director is directed to transfer $32,930.34 from the Sanitation Fund operating reserve to the FY 85-86 Sanitation Fund operating fund. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 15th day of October 1985, by the following vote, to wit: AYES: Council Members Casler, Lewis, Kulchin, Chick and Pettine NOES: ABSENT: N°ne C^/ ,f S) /V-0~T-<^f &• , (^-^a^a^^^ MARY H./CASLER, Mayor ATTEST: t£d^ x. i~I t^ . us\j>^, ALETHA L~ RAUTENKRANZ, City Clerji (SEAL) TO: SUBJECT: ENCINA WATER POLLUTION CONTROL FACILITY 6200 Avenida Encinas Carlsbad, CA 92008-0171 September 17, 1985 Telephones (619) 438-3941 (619) 438-3954 Ref: 2B.1149 Joint Advisory Committee (JAC) Members Outfall Ballast Repair Three bids were received on September 17, 1985 for the Outfall Ballast Repair work. The low bidder was Healy-Tibbetts at $678,000. Attached is a letter from John Carollo Engineers recommending award of the contract to Healy-Tibbetts as no irregularities were found. The low bid, however, does exceed the engineer's estimate for the work and will require the contribution of an additional $114,900 from the member agencies. Therefore it is: RECOMMENDED 1. JAC accept the bid of Healy-Tibbetts as the lowest responsible bidder and authorize Leucadia County Water District to award the contract. 2. JAC approve a total project budget of $764,900, and authorize staff to invoice the member agencies for an additional $114,900. DISCUSSION At the June 26, 1985 JAC meeting a budget of $650,000 was established for the repairs and diffuser modifications based upon the engineer's estimate as shown below. The actual bid price of $678,000 has necessiated the increase in the budget as follows: Rock Replacement and Port Opening Contingency Construction Management &. Inspection Additional Funds Required: $114,900 Original Budget $538,500 49,500 62,000 $650,000 Revised Budget $678,000 33,900 53.000 $764,900 The existing Unit I and Capital Funding Budgets were examined as a source for the additional funds. The Unit I Contingencies [$230,792 - $54,334 (COLA) = $176,458] were rejected for three reasons: 1) the funds were contributed on the basis of ownership in Unit I and usage; 2) deducting $114,900 would leave a balance of $61,558 in the fund, less than 1% of the total Unit I Budget after only 3 months of the fiscal year; and 3) these funds are drawn from sewer service fees not capital funds. - 12 - NOW SERVING THE CITY OF VISTA, CITY Of CARLSBAD, BUENA SANITATION DISTRICT, SAN MARCOS COUNTY WATER DISTRICT, LEUCADIA COUNTY WATER DISTRICT AND ENCIN1TAS SANITARY DISTRICT Joint Advisory Committee Subject: Outfall Ballast Repair September 17, 1985 Page 2 Under the existing capital budget, the funds allocated to the Solids Management Study, Phase II ($100,000) were also considered and rejected as it is possible a Phase II Study Contract requiring $50,000 - $100,000 from hncina could be exe- cuted as early as February or March, 1986. These funds were also contributed based on Ownership in Unit I, however they are derived from capital funds. Direct invoicing of the additional funds seems to be the least complicated and most expedient method of obtaining the additional income. The $114,900 breaks down as follows: Vista 16.67* $ 19,153.83 Carlsbad 28.66% 32,930.34 Buena 13.00* 14,937.00 San Marcos 16.67% 19,153.83 Loucadia 16.67 19,153.83 line in it as 8.33 9,571.17 $114,900.00 Award can be made at this time as funds are available through existing contribu- tions made to-date and contingencies, if necessary. Award is recommended at this time to minimize the risk of bad weather construction delays. Very truly yours, Richard *. Graff General Manager R*G:maj Attachment Serving North Sjn Diego County - 13 - ENCINA WATER POLLUTION CONTROL FACILITIES 6200 Avenida Encinas, P.O. Box 1005, Carlsbad, CA 92008 (714) 438-3941, (714) 438-3954