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HomeMy WebLinkAbout1988-06-21; City Council; 9495; 1988-89 Budget Encina WPCFCITJKOF CARLSBAD - AGEN ^•F TITLE: MTQ. fi-71-«8 DEPT._EML 1988-89 BUDGET - ENCINA WPCF O Oo RECOMMENDED ACTION: Council adopt Resolution No. Y%''*<3>6<S approving in the total amount of $10,090,957, of which the City of Carlsbad's share is $1,961,317, to operate the facility to provide full secondary treatment of sewage effluent. ITEM EXPLANATION: Attached for Council approval is a summary of the 1987-88 Encina WPCF budget. The proposed total budget of $10,090,957 represents a 29.8% increase over the current year's budget. This increase reflects the combined effects of secondary treatment, rising sludge disposal costs, inflation, and the capital improvements associated with the plant expansion and solids management project. FISCAL IMPACT: The proposed budget increases Carlsbad's annual contribution from $1,357,731 to $1,961,317. Of the $603,586 increase, $350,000 is related to operational increases and the remainder to the Phase IV expansion and solids management program. EXHIBITS: 1. 2. Memorandum from Encina WPCF to Board and Councils of the Member Agencies dated May 17, 1988 with three-page attachment. Resolution No. a 6 *J0 & approving in the total amount of $10,090,957 to operate the facility to provide full secondary treatment of sewage effluent. ,-*•»,, WATER POLLUTION CONTROL FACILITY ENCINA WATER POLLUTION CONTROL FACILITY To: Subject: May 27, 1988 Beard and Councils of the Member Agencies of the Encina Water Pollution Control Facility Fiscal Year 1988/89 Budget Recommendations 6200 Avenida Encinas Carlsbad, CA 92009-0171 Telephone (619) 438-3941 Ref: 2M.4586 Attached are the budget recommendations for the various programs which are per- formed, and/or maintained by Encina. This budget, which provides funding for secondary treatment, is recommended for approval by a majority of the Joint Advisory Committee (JAC). The JAC recommendation approving secondary level funding included the condition that advanced primary (waiver) level treatment continue until the JAC evaluates the reliability of a contract hauler (Piira Gro, Inc.) to dispose of the increased sludges. The recommendation for budget appro- val was passed by a 10 to 2 (82.22% to 17.78% Unit I) vote, with San Marcos County Water District voting no. The recommended 1988/89 Budget totals $10,090,959 compared to last year's total of $7,776,575. The major components of the budget and how they compare to last year's are shown below: PROGRAM Plant (Unit I) Outfall (Unit J) Capital Improvement Prog. Vista Trust Fund Source Control Pump Stations 1987/88 BUDGET WAIVER RECOMMENDED 1988/89 BUDGET $3,980,073 20,000 3,210,000 155,000 27,202 384,300 $4,621,069 28,000 3,507,200 833,000 99,503 472,298 16.1 40.0 9.3 435.0 266.2 22.9 $5,153,856 28,000 3,507,200 833,000 9.9,603 472,298 29.5 40.0 9.3 435.0 226.2 22.9 $7,776,575 $9,558,170 22.9 $10,090,957 29.8 In summary, the overall recommended budget represents a 29.8% increase over fiscal year 87/88. The 29.8% increase reflects the combined effects of secon- dary treatment, rising sludge disposal costs, increased flows, inflation, expanded programs and the capital improvements associated with the plant expan- sion and solids management. The following is a discussion of each of the components listed above. PLANT The recommended plant (Unit I) budget is based on the assumption that a secon- dary level of treatment may be implemented when the JAC determines reliable sludge disposal exists. It is also assumed contract sludge hauling and disposal is implemented. While the recommended budget is at secondary treatment level, the budget for waiver treatment are also for information. SERVING THE CITY OF VISTA. CITY OF CARLSBAD. BOENA SANITATION DISTRICT. SAN MARCOS COUNTY WATER DISTRICT, LEUCADIA COUNTY WATER DISTRICTING ENCINITAS SANITARY DISTRICT f**\ • Board and Councils of the mdber Agencies of Encina Subject: FY 1988/89 Budget Recommendations May 27, 1988 Page Two Other assumptions used in the plant budget include a 4% inflation factor for FY 88/89 where firm prices could not be obtained. Also, a 10% annual flow increase from 19.8 MGD to 21.8 M3D was assumed. The following major categories are discussed because they contribute a signifi- cant portion of the 29.5% 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 (+6.5%): This reflects the 4i additional positions to staff the Resource Reclamation (solids) program (li), Administrative Entity (li), clerical (3/4) support to existing programs and increased maintenance (1) resulting from secondary level of treatment. Other increasing labor requirements are met by the contracting of the sludge hauling and the reassignment of Encina staff now assigned to sludge hauling. In the event contract hauling is not implemented, additional staff (+2) would be required at the secondary level of treatment to handle existing and increasing sludge hauling duties. Funds would be transfered from the Contractural Services Accounts to fund the positions and associated expenses (fuel, tires, etc). The figures do not reflect COLA, range adjustments or increased benefit costs yet to be negotiated. Contractural Services (+12.8%): The increase reflects the contracting out of sludge hauling which was done by Encina staff and the increased sludge resulting from increased flow and treatment level requiring hauling and disposal. In the event a contract is not awarded, funds from this account would be transfered to salaries and benefits account to provide additional permanent staff and other accounts i.e. fuel, etc. Utilities (+10.5%): Three factors affect this account. The "unbundling" of rates by SDG&E has resulted in projected increases; second, the increased flows result in additional natural gas purchases from SDG&E and third, the secondary level of treatment consumes more energy. Chemicals (+2.5%): Three factors also influence this increase. The unit cost of chemicals has increased, the increased flow requires more chemicals and, secondary treatment requires more chemicals. Capital Acquisitions (+1%): New office equipment associated with the addi- tional staff along with various other replacements and new equipment account for this increase. Miscellaneous (-3.8%): Reductions in various categories result from 1) contract hauling i.e. less insurance, tractor repairs, etc; 2) formation of the Encina Administrative Agency, i.e. LCWD administration expense elimi- nated, and 3) overall reduction in maintenance and repair. ENCINA WATER POLLUTION CONTROL FACILITY 6200 Avenida Encinas, Carlsbad, CA 92009-0171 (619)438-3941 J J *o County Boards and Councils of the jtember Agencies of Encina Subject: FY 1988/89 BudgetCfecommendations May 27, 1988 Page Three OCEAN OUTFALL The recommended outfall budget of $28,000 includes inspection and kelp control elements. This fiscal year's inspection indicated a need for cathodic protec- tion and accounts for the majority of the 40% budget increase. CAPITAL IMPROVEMENT PROGRAM (CIP) FY88/89 Budget of $3,507,200 will provide funding for: 1) Phase IV - Engineering and Construction Management services in addition to prepurchase of sludge belt filter presses; and 2) North County Sewage Solids Management Project (NCSSMP) - services through the site acquisition stage and up to $1,000,000 for actual land costs. VISTA TRUST FUND The $830,000 budget is to provide funding for three remaining Phase III contract items: 1) $5,000 allowance for possible ineligible grant costs for Contract 3/4; 2) contingency amount ($650,000) pending EPA audit of CCS which was half of the construction management joint venture; and 3) $175,000 for the purchase of the railway right-of-way presently occupied by Avendia Encinas. SOURCE CONTROL PROGRAM This budget consists of industrial waste control support to the six agencies ($99,603) and participation in the Household Hazardous Materials Management Program (HHMMP) run by the County Department of Health Services ($6,400). The increase ($72,400) in this program over FY87/88 results from capital purchases for new and replacement equipment, increased labor (field and lab) effort required in part by the recent EPA audit and improved cost accounting. 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 $87,498 increase. The major factors affecting this increase are increased labor costs associated with construction contractor assistance and major repair items at the Buena Vista Pump Station. The following graphs have been prepared at the request of the BAG, and represent historical and projected costs and other parameters for various aspects of the Budget. Very truly yours, Richard W. Gr; General RV shinents ENCINA WATER POLLUTION CONTROL FACILITY 6200 Avenida Encinas, Carlsbad. CA 92009-0171 (619)438-3941 •erwnt \orfh III •>jn D'eKO County CITY OF CARLSBAD AND REVENUE RECOMMENDATI 1988/89 FISCAL YEAR (IWs DESCRIPTION OR ACCOUNT TITLE DIRECTOR'S FEES UNIT I (PLANT) UNIT A UNIT B UNIT C (BUENA VISTA PUMP STATION) UNIT D UNIT E UNIT F UNIT G (AGUA HEDIONDA PUMP STATION) UNIT H UNIT J (OCEAN OUTFALL) CAPITAL IMPROVEMENT PROGRAM (CIP) SOURCE CONTROL PROGRAM SUBTOTAL APPROVEI 1987/88 BUDGET 1,200 1,003,320 -0- -0- 35,269 -0- -0- -0- 46,530 -0- 4,716 257,810 8,886 $1,357,731 ESTIMATED ACTUAL EXPENDITURES 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 DUE TO (FROM) AGENCY RECOMMENDED BUDGET 1988/89 1,200 1,291,696 -0- -0- 48,650 -0- -0- -0- 60,996 -0- 7,109 509,830* 41,837 $1,961,317 TOTAL $1,961,317 CONTRIBUTION SCHEDULE 1. Operating Fund Payable to Eneina WPCF - Leucadia CWD 2. CORF (Non-Grant Funded) Payable to Eneina WPCF - Leucadia CWD TOTAL 1ST QUART. $362,872 127,456 $490,328 2ND QUART. $362,872 127,458 $490,330 3RD QUART. $362,872 127,458 $490,330 4TH QUART. $362,871 127,458 $490,329 TOTAL CONTRIBUTIONS $1,451,487 509,830 $1,961,317 * Calculated using present Unit I ownerships. Ref: 6I.BUDGET19.1 -5- aiTY OF CARLSBAD ID REVENUE RECOMMENDATIONS 1988/89 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 June 1988 25,800 (est.) 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 1988/89 1,291,696 COST PER EDU PER YEAR $19.29 $21.15 $27.00 $45.61 $47.17 $45.61 $45.57 $46.19 $50.07 PER MONTH $1.61 $1.76 $2.25 $3.80 $3.93 $3.80 $3.80 $3.85 $4.17 % CHANGE 9.3 27.8 68.9 3.4 (3.3) (.13) 1 7.72 Ref: 6I.BUDGET29.1 -6- REVISED ENC1NA CAPITAL IMPROVEMENT PROGRAMFY 1988/89 Ref: 6G.42S1.1 PROJECT Enema WPCF (Unit I) Facility Planning and EIR Effort2 Phase IV3 Design Existing Contract Contingencies Construction Construction Administration, CM, Contingen Plant Rehabilitation4 Capital Acquisitions Solids Management Regional Solution* PIO, financial & institution arrangements, etc. Composting Pilot Project Site acquisition & purchase Phase I Design Construction Phase Q Design/Construction Encina-only solution8 EIR, financial arrangements, etc. Site acquisition & purchase Phase I (Design) Construction Phase II Design 4 Construction Ocean Outfall (Unit J) Effluent Pump No. 3 EIR8 Design Construction Efiluent Pump No. 4 and Surge Tower;3 Planning?, Design8 , Construction Interim Flow Equal. Const.7-8 Parallel Outfall9 Planning, Design, Construct. rOTAL - With Reg. Solids Manage. -FOTAL - With Encina-Only Solution* FACILITY REPLACEMENT10 1988-89 240.000 1,040,000 500,000 48,300 178,900 1,000,000 1,500,0006 3,007,200 3,507,2006 865,000 1989-90 12,506.000 3.811.000 50,000 200,000 1,800.0006 206,000 1,925,000 18,698,000 20. 498, 0006 865,000 1990-91 14.211,000 4.157,000 60.000 200,000 1.460.000 5.100,0006 225.000 2.100,000 22,413,000 26,053,0006 865,000 1991-92 1.184.000 346.000 75,000 200.000 4.145,000 5,100,0006 19,000 175.000 6.144.000 7,099.0006 865,000 1992-93 100,000 200,000 4,145.000 4.445.000 300,0006 865,000 1993-08 2.250,000 3,000.000 3,250,000 4.000.0006 32,730.000 41,230,000 41.980.0006 12,975,000 Tola! 1988 - ?(10 = 240,000 28,941.000 8,814,000 2.583.300 3,978,900 1,000,000 1.460,000 8,290,000 3,250,000 1.500,0006 1,800, 0006 10. 200,0006 4,000,0006 450,000 4,200,000 32,730.000 95.937,000 99. 437, 200s 17,300,000 Footnotes: 1. All costs expressed at ENRLA=5500. Does not include Units B through H. Those units' CIP is prepared and administered by the Cities of Carlsbad and Vista. 2. Scheduled for completion in FY 1987/88. 3. Pending results of Facility Plan and EIR. 4. Major capital outlays toward plant rehabilitation from annual budget. 5. Based on Phase U NCSSMS Project Report and January 1988 Updated Project Report. All estimates will be refined later in FY 1987/88. 6. These expenses would be incurred only if a regional solution is not implemented. 7. Planning and EIR efforts for 3rd and 4th effluent pumps, surge tower extension and interim flow equalization were included under Unit I. 8. Design of 4th effluent pump, surge tower extension and interim flow equalization were included under Unit I. 9. May be permanent flow equalization or partial parallel. 10. These funds accumulated and held by individual agencies. -41- 1 RESOLUTION NO. 88-203 A RESOLUTION OF THE CITY OF CARLSBAD, CALIFORNIA, * APPROVING THE 1988-89 ENCINA WATER POLLUTION CONTROL FACILITY BUDGET. 4" 5 WHEREAS, the Encina Water Pollution Control Facility Joint Advisory 6 'Committee has voted to recommend the proposed 1988-89 Budget for approval; and 7 WHEREAS, the City Manager recommends and the City Council concurs, that the Q proposed 1988-89 Encina Water Pollution Control Facility Budget should be 9 approved. 10 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 12 1. That the above recitations are true and correct. 13 2. That the 1988-89 Encina Water Pollution Control Facility Budget is 14 approved. 15 PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 21st day of June , 1988 by the16 17 following vote, to wit: 18 19 AYES: Council Members Lewis, Kulchin, Mamaux, Pettine & Larson 20 NOES: None 21 ABSENT: None 22 23 ATTEST: 24 25 26 27 28 CLAUDE A. LEWIS,"Mayor j. a^^ ALETHA L . RAUTENKRANZ, Ci ty Cl e*k '(SEAL)