HomeMy WebLinkAbout1987-06-23; City Council; 9064; 1987-1988 Budget Encina WPCFCIT0)F CARLSBAD - AGEND^BILL
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TITLE:
1987-88 BUDGET-ENCINA WPCF
RECOMMENDED ACTION:
Council approve proposed 1987-88 Encina budget in the total amount
of $6,058,400 including contingency fund of $283,900 to operate plant
at full secondary treatment levels.
ITEM EXPLANATION
Attached for Council approval is a summary of the 1987-88 Encina
WPCF budget which has increased to $6,058,400 over the current
year's $4,877,961. This 24% increase is attributable primarily to
increases in the Capital Improvement Program and provision of
nearly $300,000 in the contingency account to operate the plant
at full secondary treatment levels.
Major capital expenditures include design of the Phase IV expansions
and implementation of the solids management program. Further detail
on the budget is outlined in the attached Encina transmittals.
Council should be aware that the San Marcos County Water District
disagrees with budgeting a contingency for secondary treatment and
has rejected the budget. Given the need for unanimous budget
approval the Council may wish to consider alternative budget positions
to assist JAC members in representing the City.
Alternative positions available are:
1.
2.
Approve budget without provision for secondary treatment and
make necessary adjustments when and if solids solution is developed.
Recommend approval with contingency and seek arbitration to
resolve differences.
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3. Provide for secondary treatment of all flow except San Marcos.
FISCAL IMPACT
Increases Carlsbad annual contribution to plant operation and develop-
ment by $323,643. Total budget, $1,357,731, to be funded from sewer
funds.
EXHIBITS
1.Memorandum from Encina WPCF to JAC, dated 5/1/87,
with 9-page attachment.
^n \ ENCINA WATER POLLUTION CONTROL FACILITY
TY ——————————————^——^—————————^—^——————
6200 Avenida Encinas
Carlsbad, CA 92009-0171
May 1, 198 Telephones (619) 438-3941
Ref: 6F.2519
Joint Advisory Committee
Fiscal Year 1987/88 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 (BAC). It is recommended for JAC approval by a
majority of the committee.
The recommended 1987/88 Budget totals $6,058,400 compared to last year's total
of $4,877,961. The major components of the budget and how they compare to last
year's are shown below:
COMPONENT
Plant (Unit I)
Outfall (Unit 3)
CIP
Vista Trust Fund
Source Control Program
Pump Stations
1986/87
BUDGET
$4,056,132
0
175,000
205,000
41,384
402,445
$4,877,961
1987/88
BUDGET
$4,456,900
20,000
1,015,000
155,000
27,200
384,300
$6,058,400
INCREASE
(DECREASE)
9.9%
480%
(24%)
(34%)
(5%)
24%
Major components of the 1987/88 Budget are also depicted in the 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 reflect the following assumptions:
1.
2.
A return to full secondary treatment when 'reasonable' sludge disposal is
secured and retention of the existing 301(h) waiver permit.
A 4% non-oil based materials increase for inflation where fixed quotes can-
not be obtained and 10% for oil based materials.
SERVING THE CITY OF VISTA. CITY OF CARLSBAD, BUENA SANITATION DISTRICT, SAN MARCOS COUNTY WATER DISTRICT,
LEUCADIA COUNTY WATER DISTRICT AND ENCINITAS SANITARY DISTRICT
Joint Advisory Committee
Subject: FY 1987/88 Budget Recommendations
May 1, 1987
Page 2
3. A 7% increase in average annual influent flow i.e. flow 16.3 million gallon
per day (mgd) to 17.5 mgd and a 7% solids increase from satellite plants.
4. Oceanside flow presently treated would remain at Encina under a temporary
agreement.
In regards to assumption #1 the following comments are provided. First, 'reason-
able' sludge disposal is represented in the budget as costs associated with
disposing all sludges at Otay Landfill although other atlernatives may develop.
Second, in the event the sludge disposal situation is not deviated the plant
would continue to treat at advance primary levels with a resultant overall
budget for Unit I of $4,173,000 or 2.9% above last year.
The following major categories are discussed because they contribute a signifi-
cant portion of the 9.9% overall plant budget increase or they are particularly
noteworthy. The category is followed by a percentage which relates the category
to the total plant budget.
Salaries and Benefits (-1%): This reflects the addition of one
Maintenance I position if we return to secondary treatment. This addi-
tional cost is offset substantially by a 5% decrease in the PERS contri-
bution rate. The figures shown do not reflect COLA, range adjustments, or
increased benefit costs yet to be negotiated.
Contractual Services (+ 2.5%): The major increase in this area reflects
the cost of transporting the 35% additional solids to the Otay Landfill.
Contracting out for this service is recommended in lieu of hiring additional
personnel. Continued emphasis is on contracting out where feasible and
cost effective.
Fees and Permits (+ 1%): This increase is due to the disposal (tipping
fees) charged at the Otay Landfill for the additional 35% sludges generated
by secondary treatment.
Repair and Maintenance (+ 3%): Major rehabilitation projects consume
most of the increase in this category. Included are replacement of variable
frequency drive units in the secondary treatment area, chains and flights on
the last primary sedimentation basin, and replacement of a conveyor belt in
the screenings building.
Chemicals (+ 1.5%): Increased due to additional sludge processing.
Insurance (+ 1%): This estimated increase reflects the continuing
insurance market instability. Final quotes and coverage limits are not yet
known.
Contingency (+1.5%): Includes $15,000 for a contract Public Information
Officer pending action by the member agencies on this subject.
ENCINA WATER POLLUTION CONTROL FACILITY
6200 Avenida Encinas, Carlsbad, CA 92008-0171 (619) 438-3941, (619) 438-3954
Servi/iff North
jn OIPITO Counfy
3oint Advisory Committee ^*^ '^j
Subject: FY 1987/88 Budget Recommendations
May 1, 1987
Page 3
OCEAN OUTFALL
This is a new budget component. It provides funding for the operation and main-
tenance of the outfall system. In FY 87/88 the maintenance ($20,000) identified
is an underwater inspection and possible kelp removal from the ballast rock.
CAPITAL IMPROVEMENT PROGRAM (CIP)
This year's budget of $1,015,000 will provide funding for: 1) engineering and
environmental documentation for the Unit I (Plant) Phase IV expansion project;
2) preliminary work on a regional and Encina-alone Solids Management Program;
and 3) environmental documentation for the next capacity increase on Unit 3
(ocean outfall). Information gained from the work which is underway on the Unit
I Facility Plan will be incorporated into the CIP as it is completed.
$50,000 for an Environmental Impact Report (EIR) and preliminary engineering on
the adjacent 37 acres has been retained in the budget recommendation pending
concept approval by the member agencies. However, estimated land costs
($2,200,000) have been excluded from the recommendation. Actual land purchase
and funding from the member agencies will be considered subsequent to this
budget approval. This consideration would be affected by progress towards a
regional solids solution, alternate Encina alone sites, EIR results, etc.
VISTA TRUST FUND
The $155,000 budget allocation will provide two things: 1) close-out of the one
remaining open grant from the Phase III/IHA construction project and, 2) funds
to complete the purchase of a H acre parcel along Avenida Encinas from the
Atchison, Topeka <5c Santa re Railroad.
SOURCE CONTROL PROGRAM
This budget consists of industrial waste control support to the six agencies
($20,202) and participation in the Household Hazardous Materials Management
Program (HHMMP) run by the County Department of Health Services ($7,000).
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 ($104,000) decrease. The major factors
resulting in this decrease are: 1) capital equipment purchases have decreased
substantially and 2) contract services have decreased approximately 35%.
ENCINA WATER POLLUTION CONTROL FACILITY
6200 Avenida Encinas, Carlsbad, CA 92008-0171 (619) 438-3941, (619) 438-3954
» Norfh TTT
*>.*• ." fto County J.J.J.
"Joint Advisory Committee 1w''
Subject: FY 19S7/88 Budget Recommendations
May 1, 1987
"Page k
GENERAL COMMENTS
Major milestones were acheived during this past year that will lay the ground-
work for projects of several years' duration.
1) Sludge Management Program - Phase II of the North County Sewage Solids
Management Study was completed. The implementation (Phase HI) phase of
a long term sludge disposal/reuse project is due to begin early in
fiscal year 1987/88 with a minimum of four years to completion.
2) Facility Planning - The 30 year Facilities Plan for the treatment plant
was begun with a draft plan scheduled for 3 AC review in July 1987.
3) Completion of the majority of the Clean Water Grant Audits placed the
EPA and State's "stamp of approval" on a thirteen year project and
validated decisions made at almost every stage of the project. The
extremely small percentage of disallowances placed Encina at the top of
the list for these types of EPA projects.
These are the major milestones, but there were others, not all of them expected,
but milestones none the less. As an example, the 30 day emergency storage of
sludge on the plant site was reflective of the changing nature of wastewater
treatment at Encina.
Our primary goal is the safe and economical treatment and disposal of over 6
billion gallons of wastewater in 1987/88. In addition to this primary goal,
environmental planning will continue to provide facilities for planned growth
and to accomodate reuse and recycling within the Encina service area.
Very truly yours,
Richard W. Graffv
General Manage
LAH:RWG:maj
Attachments
ENCINA WATER POLLUTION CONTROL FACILITY
6200 Avenida Encinas, Carlsbad, CA 92008-0171 (619) 438-3941 >,fa19) 438-3954
IV
PUMP STATIONS (8.3%)
VISTA TRUST FUND (2.6%)
TOTAL BUDGET FY 1987X88
$6,058,400
CIP (16.8%)
JOURCE CONTROL (0.4%)
OUTFALL (0.3%)
PLANT (73.6%)
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ATTACHMENT 1
W go Ip ap sn e
1.9 n
1.8 -
1.7 -
^
1.8 ^\IST^
1.3 -
1.2 -
1.1 -
1 -
0.9 -
0.8 -
0.7 -
0.8 -
0.5 -
0.4 -
0.3 -
0.2 -
0.1 -
0
BUDGET COMPARISON
FY 1988/87 VS 1987/88
CARLSB.!&/
0
SAN MAR
BUEN;
LEUCAD
ENCINITJ y
87 88 87 88 87 88 87 88 87 88 87 88
YEAR
ATTACHMENT 2
CTHPPHENT DECREASE
PUNT (UNIT 0 §405GJ£W9K) 99%
OUTFALL (UNIT J)
CIP
WSn TRUST FUNP
SOUKE (OUT, FWfc
PUMP STATIONS
ToTAU
106,000 480%
BS.OOO <B4%>
S1200 <34%>
384300 <5%>
6,£SBe100 34%
UNIT I (ftAin) 00PGET
EEEAKPOWN
UNIT I UftETjf 4466,900
74°/« OF TOTAL BUP&ET
INCREASE OVER FY 1986/87=
SttABK * BENEFITS *• =-
COHTKAtTl/AL SERVICES = +8.5
PEK+P0JMIT5 = +1.4%
IR* MAINTENANCE = + 3 %
CHEMIML6 = +1.5%
INSURANCE =
CONTINGENCY =+15%
DOES NOT INCLUDE
COLA/BENEFITS
TO BE NEGOTIATED fOTAL
CAPITAL IMPROVEMENT
PROGRAM (CIP
CIP BUP&T = $ 1015,000
17% Of TOTAL BUWTT
UNIT I (PUNT) -$634;
SOIK MANAGEMENT = 37%
PRO&RAM
UNIT J (OUTFALL) a_
tOtAL
1.1 I
I.OIG.OfJO
ATTACHMENT 2
FV I
WITIONAL COSfo FOR 5KONBW TREATflEKT
NATURAL GAS $70,000
CONTRACT SLUDGE HAULING 6QOQO
POLYMER 35,800
SLUDGE DISPOSAL FEES 31,600
SAL ARIES 4 BENEFITS 88,800
ELECTRICITY 87500
CONTINGENCIES 18,000
FERRK CHLORIDE 7,
FILTER PRESS BELTS 3,400
TOOLS 1,800
DIESEL 400
CITY OF CARLSBAD
BUDGET AND REVENUE RECOMMtniTIONS
1987/88 FISCAL YEAR
DESCRIPTION OR ACCOUNT TITLE
DIRECTORS FEES
SHARE OF PLANT (UNIT I)
UNIT A
UNIT B
UNIT C (BUENA VISTA PUMP STATION)
UNIT D
UNIT E
UNIT F
UNIT G (AGUA HEDIONDA PUMP STATION)
UNIT H
SHARE OF OCEAN OUTFALL (UNIT 3)
CAPITAL IMPROVEMENT PROGRAM
TOXIC POLLUTANT CONTROL
SUBTOTAL
APPROVE!
1986/87
BUDGET
$ 1,200
893,155
-0-
-0-
34,139
-0-
-0-
-0-
48,187
-0-
N/A
44,450
12,957
$1,034,088
ESTIMATED
ACTUAL
EXPENDITURE!
1986/87
$ 450
934,720
-0-
-0-
15,025
-0-
-0-
-0-
33,776
-0-
N/A
2,000
2,000
$987,971
DUE TO
(FROM)
AGENCY
RECOMMENDED
BUDGET
1987/88
$ 1,200
1,003,320
-0-
-0-
35,269
-0-
-0-
-0-
46,530
-0-
4,716
257,810
8,886
$1,357,731
TOTAL $1,357,731
I]
I
CONTRIBUTION SCHEDULE
1. Operating Fund Payable to Encina WPCF
- Leucadia CWD
2. CORF (Non-Grant Funded) Payable to
Encina WPCF - Leucadia CWD
TOTAL
1ST QUART.
$274,980
64,453
$339,433
2ND QUART.
$274,980
64,453
$339,433
3RD QUART.
$274,980
64,452
$339,432
4TH QUART.
$274,981
64,452
$339,433
TOTAL
CONTRIBUTIONS
$1,099,921
257,810
$1,357,731
Rei: 6G.BUDGEI 19
-5-
Sst.CITY OF CARLSBAD
IDGET AND REVENUE RECOMMENDATION
1987/88 FISCAL YEAR
COST TREND COMPARISONS
OF OPERATING FUND
REPORTED
EDU'S
June 1980
12,824
June 1981
13,620
June 1982
14,200
June 1983
14,667
June 1984
16,205
June 1985
18,390
June 1986
19,599
June 1987
21,723
APPROVED AND RECOMMENDED
BUDGETS
1980/81
$247,313
1981/82
$288,110
1982/83
$388,322
1983/84
$669,018
1984/85
$764,364
1985/86
838,825
1986/87
893,155
1987/88
1,003,320
COST PER EDU
PER YEAR
$19.29
$21.15
$27.00
$45.61
$47.17
$45.61
$45.57
$46.19
PER MONTH
$1.61
$1.76
$2.25
$3.80
$3.93
$3.80
$3.80
$3.85
%
CHANGE
9.3
27.8
68.9
3.4
(3.3)
(.13)
1
Ref: 6G.BUDGET20
-6-
Ref: 6F.2290.1
00
PROJECT
Encina WPCF (Unit I)
Facility Planning and EIR
Phase IV2
Design
Construction
(Design - w/waiver)
(Construction - w/waiver)
Phase V^
Design & Construction
(Design & Construction-w/waiver
Plant Rehabiliation*
Solids Management
Emergency Sludge Storage
Regional Solution'
EIR, financial & institution
arrangements, etc.)
Land
Stage 1 design
Stage 1 construction
Stage 2 design & construction
(Encina-only solution^)
(EIR, financial arrangements,
etc.)
(Land)
(Stage 1 design)
(Stage 1 construction)
(Stage 2 design & construct.)
Ocean Outfall (Unit 3)
Effluent Pump No. 36
EIR
Design
Construction
Effluent Pump No. 4 and
Surge Tower: Planning,
Design, Construction
Parallel Outfall
Planning, Design, Construct.
TOTAL - With Reg. Solids Manage.
TOTAL - With Encina-Only Solution
FACILITY REPLACEMENT7
1987-88
30,000
604,000
(362,000)
(Op Budget)
125,000
100,000
(200,000)
( 50,000)
6,000
865,000
(1,015,000)
884,000
1988-89
2,030,000
(1,220,000)
56,000
150,000
100,000
100,000
(452,000)
70,000
2,506,000
(2,608,000)
929,000
1989-90
7,550,000
(4,530,000)
58,000
105,000
1,504,000
(475,000)
(5,589,000)
318,000
9,535,000
(13,990,000)
975,000
1990-91
15,500,000
(9,340,000)
61,000
3,158,000
(11,736,000)
18,719,000
(27,297,000)
1,024,000
1991-92
64,000
64,000
1,075,000
1992-07
31,300,000
(18,800,000)
1,460,000
1,546,000
(6,543,000)
924,000
64,300,000
99,530,000
(104,527,000)
26,700,000
Footnotes:
1. Assumes 5% Inflation/Year.
Does not include Units B through H. Those units' CIP are prepared and administered by the Cities of Carlsbad and Vista.
2. Pending results of Facility Plan.
3. Pending results of Facility Plan and future growth, planning.
4. Major capital outlays toward plant rehabilitation from annual budget.
5. Based on Phase II NCSSMS Project Report.
6. Schedule may be accelerated depending on capacity needs of individual agencies.
7. These funds accumulated and held by individual agencies.
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