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HomeMy WebLinkAbout1987-06-23; City Council; 9064; 1987-1988 Budget Encina WPCFCIT0)F CARLSBAD - AGEND^BILL MTG. ENCR 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. aLUsCEo_Q_ zo o oz3 Oo 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%) o u 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. o ft.