HomeMy WebLinkAbout1988-09-13; City Council; 9639; Vista/Carlsbad Wastewater Capacity Lease AgreementOF CARLSBAD — AGENQ BILL Mf)
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DEPT. ENH
TITLE:
VISTA/CARLSBAD WASTEWATER TREATMENT
CAPACITY LEASE AGREEMENT
DEPT. HE
CITY ATT
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RECOMMENDED ACTION:
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Adopt Resolution ffo'r- approving and authorizing the Mayor to execute a
Wastewater Treatment Capacity Lease Agreement with the City of Vista and
directing staff to initiate an interim Growth Management fee to cover expenses
incurred in connection with the Lease.
ITEM EXPLANATION:
In order to insure conformance to Growth Management standards for wastewater
treatment capacity, the Council has previously adopted an action plan involving
the following actions:
Monitor Encina Treatment Plant flows on a monthly basis to determine
actual flow rates and to have an early warning of capacity problems.
Actively pursue acceleration and phasing of the Phase IV Treatment Plant
expansion.
When Carlsbad's share of Encina flows reach 5.25 million gallons per day
(MGD), actively seek leased capacity from other Encina agencies.
When Carlsbad Encina flows reach 5.45 MGD, proceed to activation of the
Calavera Hills Water Reclamation Plant.
In recent months, the staff has been actively pursuing this action plan, with
the following results:
The Phase IV expansion of Encina has been accelerated and is now
scheduled to begin construction in July, 1989.
A revised National Pollutant Discharge Elimination Systems (NPDES) Permit
has been received to allow the operation of the Lake Calavera Hills Water
Reclamation Plant.
In February of this year, Carlsbad's reported flows at Encina reached
5.25 MGD. In conformance with the action plan, staff approached the City
of Vista, the San Marcos County Water District, and the Encina Water
Pollution Control Facility with proposals to lease additional treatment
capacity.
In May, Carlsbad's flows exceeded 5.45 MGD. In conformance with the
action plan, staff initiated contacts with Encina staff to review the
Lake Calavera Hills Reclamation Plant in preparation to begin operations.
The proposed Wastewater Treatment Capacity Lease with Vista will provide
Carlsbad with the additional capacity required to postpone further measures
to activate the Lake Calavera Hills Water Reclamation Plant. In the absence
of a Lease Agreement or activation of the Calavera Hills Plant, the City will
no longer meet Growth Management Standards for wastewater treatment.
PAGE TWO OF AB#
Lease Agreement:
The proposed Lease Agreement will provide interim capacity to Carlsbad in
increasing amounts not to exceed the 1.2 MGD capacity available at the Lake
Calavera Hills Water Reclamation facility.
The Agreement is designed as a temporary measure, which will terminate at such
time as Vista determines that adequate capacity is no longer available. Upon
such determination, Vista will notify Carlsbad of the termination of the Lease.
Upon notice, Carlsbad will have 180 days to activate the Calavera Water
Reclamation Plant or obtain other alternative treatment capacity.
To insure the viability of the Calavera plant, the Agreement requires that a
60-day operational test be conducted prior to July 1989.
To effectively monitor flows for capacity availability and billing purposes,
both agencies agree to install automatic flow reading devices within 180 days.
The Agreement also provides Vista with the option of leasing outfall capacity
from Carlsbad at some future date at a cost of $19,000 per year for each MGD
or portion thereof. With installation of the third outfall pump at Encina,
it is unlikely that this provision will be activated. Details as to amount
and terms of this lease would be the subject of a future agreement.
Should Carlsbad fail to perform its obligation to return capacity as stipulated
in the Agreement or otherwise cause an infringement of capacity upon another
Agency, the City agrees to hold Vista harmless from claims arising from such
capacity infringements.
FISCAL IMPACT:
The proposed Agreement requires that Carlsbad pay all maintenance and
operational costs at Encina associated with actual flows treated under the
Agreement, and in addition an annual capacity availability charge of $30,000
for the first year, increasing by $30,000 each year thereafter to a maximum
of $150,000 per year. Assuming that Phase IV expansion is completed in July,
1991, the Agreement would be in effect for a three-year period at a total cost
of $180,000.
In addition to the capacity availability charge, the Agreement stipulates
installation of an automatic meter which is estimated to cost up to $30,000
to install, calibrate and operate.
The repairs, testing and operational expenses at the Lake Calavera Hills Water
Reclamation Plant are estimated at $50,000.
It is recommended that $400,000 be appropriated in the Sewer Fund to pay for
the metering program, capacity availability charges and repairs and operation
of the Lake Calavera Hills Reclamation Plant. Maintenance and operational
expenses will be incorporated into the annual budget process.
PAGE THREE OF AB#
Staff recommends that a temporary sewer connection Growth Management fee of
$100 per EDU be established to recapture these funds. The fee will be removed
upon completion of the Phase IV expansion. The $100 fee assumes that 4,000
EDU's would be allowed to sewer under the provision of this Agreement.
Should the City be unable to effect a lease and it becomes necessary to
activate the Lake Calvera Hills Water Reclamation Plant, the Sewer Master Plan
estimates a capital cost of $1,605,000 and a net annual operation cost of
$262,100 per year. The proposed lease will provide the most cost effective
interim treatment capacity.
EXHIBITS:
1. Resolution No. c'jr" approving a Vista/Carlsbad Wastewater Treatment
Capacity Lease Agreement.
2. Wastewater Treatment Capacity Lease Agreement.
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RESOLUTION NO. 88-334
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA,
APPROPRIATING FUNDS AND AUTHORIZING EXECUTION OF AN AGREEMENT FOR THE
LEASE OF WASTEWATER TREATMENT CAPACITY IN THE ENCINA WATER POLLUTION
CONTROL FACILITY FROM THE CITY OF VISTA.
WHEREAS, the City Manager recommends and the City Council concurs that
there is a need to lease wastewater treatment capacity from the City of Vista;
and
WHEREAS, a lease agreement for the City of Vista to provide additional
capacity to the City of Carlsbad has been negotiated; and
WHEREAS, sufficient funds are available in the Sewer Fund to make payments
necessary for meeting requirements of the agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That the Mayor is authorized to execute the lease agreement between
the City of Vista and the City of Carlsbad, California.
3. That Council appropriates $400,000 in the Sewer Fund for the lease
of wastewater treatment capacity and for the purchase, installation and operation
of wastewater flow metering devices.
4. That the City Engineer is directed to draft appropriate ordinances
2 to establish a Growth Management Sewer Connection Fee of $100 per equivalent
3 dwelling unit.
4 PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City
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Council held on the 13th _ day of September _ , 1988 by the
6 following vote, to wit:
7 AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
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NOES: None
9 ABSENT: None
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n ATTEST:
(I Alt*.12 ALETHA L. RAUTENKRANZ, City Cle,rk
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"w
WASTEWATER TREATMENT CAPACITY
LEASE AGREEMENT
This Agreement is made and entered into to be
1988 by and between the City of Vista
(hereinaftr "VISTA") and the City of Carlsbad (hereinafter
"CARLSBAD").
RECITALS
A. VISTA has wastewater treatment capacity in the
Encina Water Pollution Control Facility ("ENCINA"). A
portion of this wastewater treatment capacity not encumbered
by prior Lease commitment is temporarily available for use
by CARLSBAD for an interim period of time.
B. CARLSBAD acknowledges that the future needs of
VISTA require that the wastewater treatment capacity
transferred therein be returned to VISTA upon the
termination of this lease.
C. CARLSBAD desires to obtain treatment capacity to
cover the time period until Phase IV expansion of ENCINA
PLANT is completed or other capacity is obtained.
D. CARLSBAD acknowledges VISTA'S rights and
responsibilities under existing Leases currently in effect
with the Leucadia County Water District, the City of
Oceanside and the Buena Sanitation District.
E. The Leucadia County Water District currently has a
lease of capacity from VISTA for 1.2 million gallons per day
average annual dry weather flow (m.g .d .a.a.d . w. f . ) • This
lease will expire at or before the start of Phase IV
construction. At the present time, Leucadia is sending no
flow to Vista under this lease.
F. The City of Oceanside currently has a lease of
capacity from VISTA for a maximum of 2.15 m. g . d .a . a. d . w. f .
to serve the area of Oceanside south of Highway 78. The
estimated flow from this area currently is 0.8
m. g . d . a. a . d . w. f . At the present time, Oceanside is sending
no flow to VISTA under this lease.
G. The Buena Sanitation District currently has a
lease of capacity from VISTA for 0.3 m. g . d . a. a. d . w. f .
Buena is utilizing the entire 0.3 m. g . d . a. a. d . w. f . under
this lease.
NOW THEREFORE, in consideration of the mutual covenants
and conditions herein contained, the parties hereto agree as
follows :
1. Transfer of Treatment Capacity. VISTA
hereby leases to CARLSBAD and CARLSBAD hereby leases from
VISTA a portion of VISTA'S wastewater treatment capacity in
ENCINA in conforraance with all the terms and conditions of
this lease. The amount of capacity leased shall vary based
on CARLSBAD'S flow in excess of ENCINA capacity as reported
on ENCINA flow and EDU reports. At no time shall the leased
amount exceed 1,200,000 gallons per day average daily dry
weather flow (g.p.d.a.d.d.w.f.).
2. Term of Lease. This lease shall begin upon
approval by both agencies.
3. Termination of Lease. This lease shall
terminate when any of the following occur:
a. VISTA provides written notice to that
VISTA in its sole reasonable discretion needs
the capacity leased to CARLSBAD. CARLSBAD
then has 180 days to replace the capacity
through the following means:
(1) Activation of Lake Calavera Hills Water
Reclamation Plant.
(2) Transfer of such flows for treatment by
the City of Oceanside.
(3) Provision of Lease Agreement with other
Encina Joint Powers member agencies.
b. The ENCINA Phase IV project is completed.
c. CARLSBAD provides 30 day written notice
to VISTA that CARLSBAD at its sole reasonable
discretion does not need the capacity.
4. Encina Re-Rate. VISTA and CARLSBAD agree to
pursue the re-rating of ENCINA to obtain additional
treatment capacity.
5. Buena Sanitation District Flows. This Agreement
will not limitin anyway VISTA'S ability to make leases
with the Buena Sanitation District to meet Buena's shortfall
of capacity. Any capacity leased to Buena Sanitation
District will be assumed, for the purpose of this lease, to
be flow derived from VISTA.
•
6. Oceanside Flows. Any flow from the City of
Oceanside provided for in the Vista/Oceanside Flow Transfer
Agreement dated October 24, 1984, shall also be viewed, for
the purpose of this lease, as flow from VISTA.
7. Activation of the Lake Calavera Hills Water
Reclamation Plant. Prior to July, 1989, CARLSBAD shall
perform a 60-day operational test of the Lake Calavera Hills
Water Reclamation Plant. This test will include 30 days of
operation with wastewater. All costs associated with the
testing, repair and operation of the Lake Calavera Hills
Water Reclamation Plant shall be borne by CARLSBAD.
8. Flow Determination. Flow quantities for
purposes of this agreement shall be based on measurements
reported in the monthly Encina Flow Report. CARLSBAD within
180 calendar days of execution of this lease shall install
an ADS (brand) or equivalent acceptable meter at the outfall
of the VISTA/CARLSBAD trunk into ENCINA. VISTA within 180
calendar days of execution shall install an ADS (brand) or
equivalent acceptable meter at the VISTA metering station on
the VISTA/CARLSBAD trunk. Measured flow shall be
periodically verified through comparison with equivalent
dwelling unit (EDU) information utilizing a flow rate of 210
gallons per EDU in both cities.
9. Payment. From the effective date of this lease
CARLSBAD shall pay:
(a) A capacity availability charge for the first
year's lease of $30,000.00. Said charge is to increase each
year thereafter by an additional $30,000.00 per year to a
maximum annual charge of $150,000.00 per year. The first
payment is due upon execution of the lease and all
subsequent payments are due on the annual anniversary of
this agreement.
(b) When CARLSBAD'S flow at ENCINA exceeds its
capacity, CARLSBAD shall also pay ENCINA operation and
Maintenance costs associated with such excess flow as
determined by the "use" component of the ENCINA Budget and
any adjustments thereto approved by Encina.
10. Ocean Outfall Capacity. VISTA shall have the
option of leasing outfall capacity for $19,000.00 per year
payable only upon exercise of the option, 1988 dollars to be
adjusted for inflation pursuant to the ENR index, for each
one million gallons per day peak flow. The lease of outfall
capacity shall be accomplished by a written agreement
between VISTA and CARLSBAD. The terms shall include the
terms of this Agreement as appropriate. This option shall
expire when the lease of treatment capacity expires as
provided for in Section 3 of this agreement.
11. Hold Harmless. CARLSBAD shall indemnify and
hold VISTA harmless from any claims, losses, liabilities, or
other damages due to capacity infringements, whether by act,
error, or omission, on leased or owned capacity of other
agencies due to CARLSBAD'S use of capacity under this
Agreement. CARLSBAD shall likewise indemnify and hold VISTA
harmless from any claims, losses, liabilities or other
damages for CARLSBAD'S inability to meet the conditions of
section 3(a) of this Agreement. All indemnifications and
holding harmless in this paragraph shall include such costs
as administrative fines and attorney fees, as well as any
other costs.
12. Nonassignment. Neither this agreement nor the
rights, obligations and duties of either party may be
assigned, hypothecated, encumbered or transferred without
the prior written approval of the other party.
13. Binding Nature. This Agreement and its terms,
convenants and conditions shall apply to, inure to the
benefit of, and bind the successors and assigns of the
parties hereto.
14. Entire Agreement. This Agreement represents
the entire agreement between the parties, superseding and
replacing any prior negotiations, discussions or agreements
of the parties relation to the subject matter hereof.
15. Amendment. This Agreement may be amended
at any time by an agreement in writing signed by both
parties.
16. Attorney's Fees. In the event of litigation to
interpret or enforce the terms of this Agreement, the
prevailing party shall be entitled to recover its reasonable
attorneys' fees in addition to costs.
17. Written Notice. Any notice or other instrument
required by this agreement shall be deemed delivered if
deposited, certified mail, in the United States mail and
addressed as follows:
"VISTA"
City of Vista
600 Eucalyptus Avenue
Vista, CA 92083
Attn: City Manager
"CARLSBAD"
City of Carlsbad
1200 Elm Avenue
Carlsbad, CA 92008
Attn: City Manager
Notice of a change of address shall be delivered in the
same manner as any other notice provided by this paragraph,
but shall not be deemed effective until received by the
other party to this agreement.
IN WITNESS WHEREOF, the parties have hereto executed
this Agreement the day and year first hereinabove written.
CITY OF CARLSBAD
1
A/LEWlfe, Mayor
CITY OF VISTA
GLORIA E. MC CLELLAN, MAYOR
ATTEST:ATTEST:
ALETHA L. RAUTENKRANZ, City ""Clerk
JO SEIBERT, CITY CLERK
APPROVED AS TO FORM:
City Attorney
APPROVED AS TO FORM:
NALD E. NULL, CITY ATTORNEY
COPY