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Home My WebLink About1986-06-17; City Council; 8665; Approval of Final Ecina BudgetCQ OF CARLSBAD — AGENGi BILL ARtf ^» 6 .5 MTG 6/17/86 DEPT. tjln TITLE: APPROVAL OF FINAL ENCINA BUDGET DEPT HD ^ CITY ATTY 1^3 CITY MQR.^£-^ RECOMMENDED ACTION: Approve Carlsbad's proportionate share of the FY86-87 Encina Budget by minute motion. ITEM EXPLANATION; The Joint Advisory Committee (JAC) approved the Encina Operating Budget at it's meeting of May 28, 1986. The budget was developed by the Encina Manager, reviewed by the Budget Advisory Committee (Mayor Casler was Carlsbad's representative on the committee) and approved by the JAC. The Manager's budget- letter and the Carlsbad budget summary are included in the exhibits. Carlsbad's share of the 1986-87 Encina Budget is $1,034,088, and increase of $15,417 over the 1985-86 expenditure of $1,018,671. The proposed City Budget contains an estimated City share of the Encina Budget at $850,000. Carlsbad's actual share of the Encina Budget is higher than the estimate because of an accounting change. Carry-over funds from the 1985-86 budget will no longer be applied to the 1986-87 budget, but will be deducted from the fourth quarter payment for the 1985-86 fiscal year. A detailed copy of the Encina Budget is on file in the Utilities /Maintenance Department. IOor0.a. o B<_i o oo FISCAL IMPACT; The effect of the approval of the Encina Budget on the City's 1986-87 Sanitation Budget is summarized as follows : Proposed Budget Based On Estimated Encina Budget City system operation - $ 729,110 Encina changes - $ 850,000 $1,579,110 Revised Budget Based On Actual Encina Budget $ 729,110 $1,034,088 $1,763,198 This change has been incorporated in the proposed 1986-87 City operating budget. The anticipated revenues are expected to be $1,750,000, however, the $13,198 should not be sufficient to adjust service fees. The current operating fund balance is about $1,710,000. EXHIBITS; 1. Encina Manager's Budget Letter 2. Carlsbad's Proportionate budget allocation Coordinating copy: Finance Dept. ENCINA WATER POLLUTION CONTROL FACILITY ENCINA WATER POLLUTION CONTROL FACILITY 6200 Avenida Encinas Carlsbad, CA 92008-0171 Telephones (619) 438-3941 May 16, 1986 (619) 438-3954 Ref: 6E.1676 Joint Advisory Committee Fiscal Year 1986/87 Budget Recommendations Attached are the budget recommendations for the various programs which are per- formed and/or maintained by Encina. This budget has been reviewed in detail by the Budget Advisory Committee and is recommended by them for approval. The 1986/87 Budget totals $4,877,961 compared to last year's total of $5,421,007. The major components of the budget and how they compare to last year is shown below: COMPONENT Plant CIP Vista Trust Fund Toxic Pollutant Control Pump Stations 1985/86 BUDGET $3,716,692 815,000 575,780 21,000 292,535 $5,421,007 1986/87 BUDGET $4,054,132 175,000 205,000 41,384 402.445 $4,877,960 INCREASE (DECREASE) 9 (366) (229) 97 38 ( 12) Major components of the 1986/87 Total Budget are also depicted in the pie graph attached (Attachment 1). A comparison of this budget against last year's for each agency is shown in Attachment 2. The following is a discussion of each of the major components listed above: PLANT The plant expenses and income reflect a 9% increase in average annual flow and an advance primary level of treatment. In addition, flow from Oceanside treated at Encina under the temporary flow agreement with Vista has been calculated for the entire year. Should the agreement terminate, adjustments have been prepared (Financial Plan <5c Revenue Program Section) to accomodate this. Major changes and components of this budget are: Salaries and Benefits (up 8%): This reflects three additional personnel and retaining as a full-time position the Accounts Clerk/Secretary funded through June 1986. The figures shown do not reflect COLA, range adjust- ments, or increased benefit costs yet to be negotiated. SERVING THE CITY OF VISTA. CITY OF CARLSBAD. BUENA SANITATION DISTRICT. SAN MARCOS COUNTY WATER DISTRICT, LEUCADIA COUNTY WATER DISTRICT AND ENCINITAS SANITARY DISTRICT I b'ect: Fiscal Year 1986/87 Budget Recommendations Page 2 Contractual Services (up 24%): This area reflects the commencement of a Dainting/corrosion prevention program and a janitorial contract in lieu of temporary/part-time staff. Emphasis is on contracting out where feasible and cost effective. Repair and Maintenance (up 60%): Major rehabilitation projects consume most of the increase in this category. Included are replacement of chains and flights on the last primary sedimentation basin, replacement of a con- veyor belt in the Screenings Building and scheduled rebuild of 36 heads on two engine generators and one engine blower. Utilities (down 17%): Last year's figure was a secondary treatment budget, the waiver has shown savings in this area. Other decreases are due to the decrease in the cost of natural gas and energy conservation measures. While overall utility costs show a 17% decrease, electricity costs are up by 198% due to a new SDG&E stand-by charge. Chemicals (down 6%): Waiver savings and low chemical prices have combined to decrease this budget. Insurance (up 100%): This estimated increase reflects the continuing insurance market instability. Final quotes and coverage limits are not yet known. Capital Acquisitions (up 43%): This new and replacement equipment for the plant is up due primarily to the purchase of two new trucks, spare modules for the programmable controller, a pump and motor for the //I digester and an automatic gate for the septage haulers. CAPITAL IMPROVEMENT PROGRAM (CIP) This year's budget of $175,000 will provide funding for: 1) Beginning Phase III or implementation phase of the Solids Management Study; and 2) preparation of a plant (Unit I) Facility Plan to provide 5 and 20 year projections of expan- sions and improvements. VlaTA TRUST FUND The $205,000 budget allocation will provide two things: 1) close-out of the one remaining open contract from the Phase III/IIIA construction project and, 2) funds to retain Larry Walker and Associates if needed, for work on the grant audits. TOXIC POLLUTANT CONTROL PROGRAM This budget consists of industrial waste control support to the six agencies ($31,000) and the Household Hazardous Materials Management Program (HHMMP) run by the County Department of Health Services. ENCINA WATER POLLUTION CONTROL FACILITY 6200 Avenida Encinas, Carlsbad, CA 92008-0171 (619) 438-3941, (619) 438-3954 Subject: Fiscal Year 19&6/87 Budget Recommendations Page 3 PUMP STATIONS The Buena Vista and Agua Hedionda Pump Stations are operated and maintained by Encina staff for the cities of Carlsbad and Vista. The combined budgets for these pump stations reflect a 38% ($104,000) increase. The major factors resulting in this increase are: 1) the need to replace an underground fuel tank at the Buena Vista station; 2) the labor and power costs caused by additional flows from the cities and as a result of the temporary flow from Oceanside; 3) a major pump rebuild at Buena Vista. Those estimated costs ($52,000) associated with Oceanside will be charged against Vista only in accordance with the 31st Supplement to the Basic Agreement. GENERAL COMMENTS This year has been busy, but fruitful. We have implemented the waiver and an intensive ocean monitoring system. We have made plant modifications to improve operational controls, lower the incidence of maintenance repair, and save energy. We have completed the close out of six of the seven Phase III/IIIA construction grants and completed a Pre-Audit review of the twelve year grant history. The Ocean Outfall has received a new layer of ballast protection for part of its length and a Facility Plan for the Outfall was completed. Phase I of the North County Sewage Solids Management Study was completed and Phase II begun. This was in addition to our overall goal of the safe and economical disposal of over 5.7 billion gallons of wastewater. Finally, a note about trends. Attachment 3 is a graph showing budget per million gallons (operations and maintenance cost only). This graph reflects the influence of the level of treatment, economy of scale and stabilization of energy costs. Factors affecting future Encina budgets include the operating and capital costs •••OCiated with solids disposal, the future disposition of the 301(h) variance, Federal and State regulations in the three mediums of disposal/reuse - land, water and air. ¥aty truly yours, BE ENCINA WATER POLLUTION CONTROL FACILITY Encinas, Carlsbad, CA 92008-0171 (619) 438-3941, (619) 438-3954 Y TOTAL BUDGET F ISCAL YEAR 1986/87 ALL OTHER O&M $1,586,625 (A. 4,877,960 UTILITIES $ 739,500 TOXICS CONTROL $41,384 SALARIES & BENEFITS $1,728,007 PUMP STATIONS $402,445 ( ) IP - $175,000 /ISTA TRUST FUND $205,000 n s.ta Q 1600 1400 1000- 800 600 400- LU 200 o Q Z) m 0 BUDGET COMPARISON FY 1985/86 VS FY 1986/87 86 87 VISTA 86 87 CARLSBAD 86 87 BUttNA 86 87 86 87 86 87 SAN MAKCUS LEUCJADlA KNCINITAS HH > O 2tn H COST PER PIG VS. FLOU 1979/80 - 1986/87 800 600 c/) o u 400 0 O O O O O O | | | | | I | | | 79/80 80/81 81/82 82/83 83/84 84/85 85/86 86/87 80 60 o 40 20O 0 O 2m H «*> YEAR O COST PER MG FLOW CITY OF CARLSBAD BUDGET MO REVENUE RBXM£NMT1CNS 19S6/S7 FISCAL YEW DESCRIPTION CR />O£UNT TITLE DIRECTORS FEES SHWE CF UNIT I UNIT A UNIT B UNIT C (BUENA VISTA PUVP STATION) UNIT D UNIT E UNIT F UNIT C (/KUA rEDlCNDA PUVP STATION) UNIT H CAPITAL 1\PHCVB€NT PROGRAM TCKIC POLLUTANT CCNTRCL SUBTOTAL Carry Over (Applied to 1985/86 4th Quarter Payment) APPROVED 1985/86 BUDGET $ 1,200 238,827 -0- -0- 25,212 -0- -0- -0- 30,003 -0- 230,319 3,600 $1,1*9,959 ESTIM"iTED /CTUAL EXPENDITURES 1985/86 $ 700 728,900 -0- -0- 22,000 -0- -0- -0- 47,000 -0- -0- 5,600 $264,200 DUE TO(FHCM) /GENCY RECOM£NO£DBUX£T 1926/27 $ 1,200 293,155 -0- -0- 34,139 -0- -0- -0- 42,127 -0- 44,450 12,957 $1,034,088 -0- TOTAL $1,034,028 CCNTRIBUTICN SQCDULE 1. Operating Fund Payable to Encina WCF - Leucadia CM) 2. CCRF (Non-Grant Funded) Payable to Encina WCF - Leucadia CM) TOTAL 1ST QLCKT. $247,409 11,113 $258,522 2ND QUftT. $247,409 11,113 $258,522 3RD QU*KT. $247,410 11,112 $258,522 4TH QU«RT. $247,410 11,112 $258,522 TOTAL CCNTRIBUTICNS $989,638 44,450 $1,034,088 Ref: 6E.BUDGET19 -5-