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HomeMy WebLinkAbout1987-09-22; City Council; 9172; Encina Water Pollution Control Facility Organizational Concept SurveyOF CARLSBAD — AGENDA BILL AB# MTG. TITLE: ENCINA WATER POLLUTION CONTROL FACILITY ENGR ORGANIZATIONAL CONCEPT SURVEY OUJ g&.o_ RECOMMENDED ACTION: Council endorse further exploration of the concept of creating a "dependent legal entity" to perform the duties of Operator/Administrator of the Encina WPCF and approve attached survey response. ITEM EXPLANATION: For some time the Encina Joint Advisory Committee has been discussing reorganization of the Joint Committee to expedite the administration of the facility's routine operations. In recent months these discussions have focused on the creation of an Administrative Committee to replace the Leucadia County Water District as Administrator/Operator. It has been proposed that a separate "dependent legal entity" be formed to replace Leucadia. This entity would be a separate legal authority with its own powers and responsibilities. The entity initially would handle only the routine administrative functions now assigned to Leucadia (see Attachment 2). The Joint Advisory Committee would likely sit as the Board of Directors, but would not be empowered to perform policy-making functions. The attached survey has been presented to each of the joint power's agencies to determine if there is agreement to further pursue the concept. Staff and the Council Encina representatives concur in exploring the concept with the stipulations listed under Items 2 and 3 of the survey form. FISCAL IMPACT: Establishment of a separate entity will involve preparation of appropriate legal documentation and significant staff review time. Precise amounts of costs involved are not available at this time. EXHIBITS:Q- Survey for Encina request dated August 27, 1987. z O Oz3 OO SURVEY RE: FORMATION OF AN ENTITY TO SERVE AS OPERATOR/ADMINISTRATOR OF THE ENCINA WATER POLLUTION CONTROL FACILITY 1. A concept has been presented to the Joint Advisory Committee of Encina regarding the present Operator/Administrator Method of running Encina. This concept would create a "dependent legal entity" to perform only those duties listed in the attached letter. Would your Agency support further explora- tion of this concept? Yes 2. The "dependent legal entity" if acceptable to the member agencies, would have no assets, no condemnation abilities, no capital raising (debt) abili- ties, etc. Are there any other abilities/powers' that your Agency feels this "entity" should not have if it is created? In its initial form, the agency should have no more powers than those assigned to the Administrator under the basic agreement. 3. Are there any other powers your Agency feels it should have? Options to utilize the new entity to assist facility expansion financing should be explored. Other Comments? Ref: 2H.2822.1 Vw -fc,^ ENCINA WATER POLLUTION CONTROL FACILITY August 27, 1987 6200 Avenida Encinas Carlsbad, CA 92009-0171 Telephones (619) 438-3941 Ref: 21L2825 City of Carlsbad 1200 Elm Avenue SEP 9 1007 Carlsbad, California 92008 , 0/ Attention: City Council [_ Subject: Encina Water Pollution Control Facility Organizational Concept Survey The attached survey has been forwarded for your Board/Council's consideration at the recommendation of the Encina Joint Advisory Committee (JAC). BACKGROUND JAC, after much discussion, referred the idea of examining the way Encina is operated and administered to their Plans and Policies Committee (P&PC). The P&PC recommended hiring a consultant to advise the JAC as to alternative organizations/methods to streamline and centralize the administration. Best, Best & Krieger (BB&K), a legal firm specializing in governmental law, was hired to prepare the report, in which they outlined several alternatives. After receiving BB&K's report, JAC asked the P&PC to prepare a survey focusing on the creation of a "dependent legal entity" to operate/administer Encina. This con- cept, was focused on as it did not create an independent special district, but would create an entity with limited, defined powers to carry out the duties shown in the attached letter from the Leucadia County Water District. DISCUSSION Before JAC proceeds further, they wish to assess the "common ground" held by the Member Agencies towards this concept, hence this survey. It has been generally agreed that any organizational changes at Encina be strictly limited to the Operation/Administration aspects defined in the Basic Agreement. It is requested that the completed survey be returned to Encina by October 5, 1987. SERVING THE CITY OF VISTA, CITY OF CARLSBAD, BUENA SANITATION DISTRICT, SAN MARCOS COUNTY WATER DISTRICT, LEUCADIA COUNTY WATER DISTRICT AND ENCINITAS SANITARY DISTRICT August 27, 1987 Page 2 FISCAL IMPACTS To-date, $5,000 in consulting fees have been spent. Implementation costs (one-time and on-going) would be developed if approval for proceeding with the exploration of this concept is given by the Member Agencies. Very truly yours, fichard E. Vtfught Chairman Attachment LAH:REV:mme pc: Joint Advisory Committee Technical Advisory Committee Mr. Eric Larson Mr. John Mamaux Mr. Lloyd Hubbs ENCINA WATER POLLUTION CONTROL FACILITY 6200 Avenida Encinas, Carlsbad, CA 92008-0171 (619) 438-3941, (619) 438-3954 Serving North i San Diego County f-J ATTACHMENT 2f"^ ,-^ LEUCADIA COUNTY WATER DISTRICT PO»T or net iox 23*7 • LCUCAOIA CALIFORNIA »1O34 otS4 • <« •». 7»J oi»» Augjst 3, 1987 To: Rick Graff From: Joan Geiselhart Subject: LCHD's Responsibilities as Administrator/Operator In order to aid the Plans and Policies Committee in its deliberations regarding restructuring Encina, the following information lists the tasks per- formed by LCWO as Administrator/Operator. I. Employees 1. Hire staff as recommended by the Encina General Manager for the administration, maintenance and operation of the facility 2. Contract with PERS for employees' retirement benefits and with insurance companies to provide medical, dental, life, disa- bility and Worker's Compensation Insurance 3. Contract with established savings and loan institution to pro- vide a Deferred Compensation Plan 4. Pay quarterly and periodic State and Federal Income taxes and Social Security tax, PERS contributions, Worker's Compensation, Unemployment tax, Deferred Compensation and Credit Union deductions 5. Negotiate with Teamsters Union for the Operations and Maintenance Unit and Supervisory Unit and approve salaries within budget approved by member agencies 6. Establish pay ranges and approve salaries for all other Encina employees as recommended by General Manager within approved budget 7. Establish benefits program 8. Establish Employees Handbook 9. Maintain personnel files II. Contracts 1. Enter into contracts as recommended by the General Manager and JAC for engineering and environmental studies; services including (maintenance, landscaping, painting); professional (design, audit, organizational, legal) and construction DISTRICT OFFICE I»6O LA CO«.l]lLJkVCNUC • CAKLStAO. CALIFORNIA 2. Establish and monitor guidelines for bid proposals 3. Hold public hearings to review and certify environmental reports III. Accounting 1. Review and approve expenditures as contained in annual budget approved by the members agencies 2. Reconcile journals, ledgers monthly 3. Review accounting methods and procedures utilized by Administrative staff 4. Contract for an annual outside audit 5. Make annual tax reports on wages and payments to JAC members IV. Investments and Banking 1. Deposit all revenue to appropriate bank accounts 2. Maintain dally balances of Encina bank account 3. Reconcile bank accounts monthly 4. Invest excess funds under policies established by LCWO Board of Directors to maximize Income 5. Request stop-payment on checks If required 6. Act as signatories to all bank accounts 7. Transfer and wire funds under policies adopted by LCWD V. Other 1. Apply for NPDES permits - plant, sludge disposal sites 2. Insurance This current list has evolved from a much More Inclusive list of duties. In order to promote efficiency, several tasks were transferred to the Encina Administrative staff, 1e. preparing pay roll, processing accounts payables, maintaining vacation and sick leave ledgers. In reviewing the llth Supplement, I note the following tasks have always been performed by the Encina staff upon recommendation and approval of JAC. "Section 1. (a) Manage, maintain and operate the Joint System and pre- serve It in good repair and working order, all in ac- cordance with recognized sound engineering practices (b) Reconstruct or cause to be reconstructed such portions of the Joint System as shall be ordered by all parties to this agreement jointly, or in the discretion of LCWD when an emergency arises and such reconstruction is immediately required to permit the Joint System to continue to function; provided, however, at such time as LCWO is ordered to reconstruct or cause to be re- contructed, any portion of the Joint System LCWO may require that before it undertakes such reconstruction the estimated cost of such reconstruction be deposited in trust with LCWO for use by LCWD In paying of costs of such reconstruction (c) Measure and keep accurate records of the measurements of sewage flow that may be required by the majority vote of the Joint Advisory Committee (d) Take periodic measurements as directed by the majority vote of the Joint Advisory Committee sufficient to ascertain the amount of sewage developed and origi- nating within the limits of each party to the Basic Agreement and discharged into the Joint Systems and the total amount of sewage developed and originating within the limits of all parties and discharged Into the Joint System (e) Administer the disposition of sludge from the treat- ment plant in accordance with Section 28 of the Basic Agreement. If any sludge, fertilizer or by-product arising out of operation of the Joint System 1s sold, such sale shall be administered by the Operator and the proceeds thereof apportioned as required by said Section 28 • "(g) Prepare and submit annually to the parties to this agreement a budget estimating the amount of moneys necessary to operate and maintain the Joint System as hereinafter set forth " •(j) Maintain Insurance as specified In section 31 of the Basic Agreement (k) Maintain and operate the Joint System and preserve It in good repair and working order, all in accordance with recognized sound engineering practice ' The following duties outlined in the llth Supplement have been shared by Enclna and LCWD staffs: •(f) Provide supplies and clerical and secretarial services and engineering advice to the Joint Advisory Committee referred to in said Basic Agreement and engineering to the Basic Agreement Incidental to the operation and maintenance of the Joint System • 7 LCWD has never provided engineering advice nor clerical and secretarial services. Minimal supplies have been provided in the course of accounting pro- cecjres, maintaining personnel records and managing investments. "(1) Maintain accurate records and accounts of all receipts and disbursements and expenses incurred in connection with the operation and maintenance of the Joint System and in connection with any ordered reconstruction. Such records and accounts and the records of measure- ment of sewage flow shall be available for Inspection at all reasonable times by any party to this agree- ment " Although LCHD staff contributes some supervision to the maintenance of accounting records, the actual records are 1n the possession of Encina with the exception of personnel files which are maintained at both locations. r