Loading...
HomeMy WebLinkAbout1988-11-22; City Council; 9748; 39th Supplement to Encina Joint Powers Basic Agreement Providing for Phase IV Capacity and Cost AllocationCITt5>F CARLSBAD — AGEND^QILL MTG. 11-22-88 DEPT._ENG_ TITLE: 39TH SUPPLEMENT TO ENCINA JOINT POWERS BASIC AGREEMENT PROVIDING FOR PHASE IV CAPACITY AND COST ALLOCATION DEPT. CITY A CITY MGR zo oz 1 RECOMMENDED ACTION: Recommend approval of Resolution. to the Encina Joint Powers Basic Agreement. approving the 39th Supplement ITEM EXPLANATION: The Thirty-Ninth Supplement to the Encina Basic Agreement allocates capacity and costs of the Phase IV expansion to the various agencies. The Agreement fixes capacity ownership rights in the treatment plant (Unit I) for both liquids and solids and in the outfall (Unit J). The resulting ownerships are as follows: ALLOCATION OF OWNERSHIP AND CAPACITY IN UNITS "I" AND "J" The Unit I (liquid and solids) and Unit J (disposal) capacities and ownerships upon completion of Phase IV shall be as follows: UNIT I LIQUID SOLIDS UNIT J DISPOSAL AGENCY Vista Carlsbad LCWD SMCWD Buena Encinitas Total Cap 8. 9. 7. 7. 2. ,MGD 05 24 11 54 26 1.80 36.0 Owner% 22.36 25.67 19.75 20.94 6.28 5.50 100.00 Cap 8 9 7 7 3 ,MGD .05 .24 .86 .54 .51 1.80 38.0 Owner% 21.18 24.32 20.68 19.84 9.24 4.74 100.00 Cap, 8. 9. 7. 7. 3. MGD 05 24 86 54 51 1.80 38.0 Owner 21.85 24.32 20.68 19.84 9.24 4.74 100.00 It is significant to note that Carlsbad's percentage of ownership for liquid capacity will increase by 0.27 per cent, and its solids and outfall ownership will decrease by 1.08 and 4.34 per cent, respectively. These ownership adjustments result in a new $745,000 credit to Carlsbad for the sale of existing facilities to other agencies. The final cost allocations and distribution methodology are included in Attachment "A" to the Supplement. The final estimated project cost for the total project is $48,792,000. Carlsbad's share of the estimated cost is $11,278.00. The agreement provides that all funds be deposited or secured by separate agreement prior to advertisement of the construction contract. PAGE TWO OF AB# FISCAL IMPACT: The estimated Carlsbad share of the Phase IV expansion is $11,278,000. The expansion will ultimately be funded through sewer connection fees. There are insufficient funds currently existing to fund the project. It is proposed that the City of Vista, the Buena Sanitation District, Leucadia County Water District and Carlsbad enter into a Joint Powers Agreement and issue bonds to finance the expansion. The bonds would be retired through collection of sewer connection fees. Should this approach fail, an alternative financing would be required to fund the City's share of the project. This alternative could involve delaying other planned sewer projects and possible loans from other funds. The current sewer connection charge of $1,250 did not include provisions for debt financing. At such time as the final project and financing costs are known, staff will be recommending a fee increase to cover debt service. EXHIBITS: 1. Encina letter of October 28, 1988. 2. Resolution %%~Hl3 approving the 39th Supplement to the Encina Joint Powers Basic Agreement. 3. 39th Supplement to Basic Agreement. ENCINA WATER POLLUTION CONTROL FACILITY 6200 Avenida Encinas Carlsbad, CA 92009-0171 October 28, 1988 Telephone (619) 438-3941 Ref: 2Q.5173 TO: Technical Advisory Council (TAG) Committee SUBJECT: Items to Schedule for Board/Council Action At their October 26, 1988 meeting, JAC approved the following items and recommended approval by your Board/Council: 1) 39th Supplement to the Basic Agreement - Capacity and Cost Allocations for the Phase IV Project 2) A Short-Term Capacity Management Policy - Policy for liquid and solids capacity management from the present until comple- tion of Phase IV Project. Both items require approval of all agencies before they are considered ratified. The 39th Supplement has been revised to incorporate the amended wording approved by JAC at their meeting regarding Section 6, Timing of Funding. This section now requires that funds will be deposited or agreements guaranteeing funding will be executed, prior to adver- tisement of the Phase IV construction contract. The Short-Term Capacity Management Policy has been modified to reflect JAC's amendment of Item 1 under the Policy section. The amendment changes the word "exceeds" to "reaches" and reflects the idea that prior to the time an agency's flow plus committed flows exceeds its owned and leased capacity, that Agency would present a plan to JAC outlining the methods by which they will meet their capacity require- ments. Please schedule consideration of these items as soon as possible; contact Lisa Hogan if you require further information. Very truly yours, •At'Richard W. Graff ^ General Manager LAH:RWG:am pc: Jack Kubota Dexter Wilson SERVING THE CITY OF VISTA, CITY OF CARLSBAD, 8UENA SANITATION DISTRICT, SAN MARCOS COUNTY WATER DISTRICT, IEUCADIA COUNTY WATER DISTRICT AND ENCINITAS SANITARY DISTRICT **»•• 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 88-413 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD APPROVING EXECUTION OF THE 39TH SUPPLEMENT TO THE ENCINA JOINT POWERS BASIC AGREEMENT PROVIDING FOR APPORTIONMENT OF COSTS AND CAPACITY RIGHTS IN THE ENCINA WATER POLLUTION CONTROL FACILITY BY REASON OF PHASE IV EXPANSION. WHEREAS, the City of Carlsbad is a party to Encina Joint Powers Basic Agreement providing for the ownership, operation and maintenance of Encina Joint Sewer System; and WHEREAS, all parties to said Basic Agreement have agreed that a Phase IV expansion of Encina Water Pollution Control Facility is necessary; and WHEREAS, it is necessary to allocate and apportion the cost of said Phase IV Expansion and to adjust the capacity rights of the parties to the Basic Agreement in order to balance the capacity right of the Parties in and to Unit "I" (treatment plant) and Unit M" (outfall). The 39th Supplement provides for such apportionment and allocation; and WHEREAS, the Joint Advisory Committee to the Encina Joint Powers has unanimously approved the said 39th Supplement to the Basic Agreement; and WHEREAS, it is for the best of the City of Carlsbad that the said 39th Supplement to the Basic Agreement be executed by this City. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad as follows: Section 1. That the Mayor of the City of Carlsbad be, and is hereby authorized and directed to execute the 39th Supplement to the Encina Joint Powers 3 Basic Agreement. 4 PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City 5 Council held on the 22nd day of November , 1988 by the 6 following vote, to wit: 7 AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson 8 NOES: None 9 ABSENT: None J" • i jf± ir »-. «-«i H* •••*"- ^^*.. • v *j .. —>, Mayor ATTEST: 12 ALETHA L. RAUTENKRANZ, City Clerk) 13 (SEAL) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SUPPLEMENT TO BASIC /5TREEMENT TO PROVIDE FOR ALLOCATION OF CAPACITY AND COSTS OF PHASE IV EXPANSION Ref: 20.4852 This Thirty-Ninth Supplement to the Basic Agreement is made and entered into as of this day of • , 1988, by and among the CITY OF CARLSBAD, a general law city (hereafter "CARLSBAD"), the CITY OF VISTA, a general law city (hereafter "VISTA"), BUENA SANITATION DISTRICT, a County Sanitation District (hereafter "BUENA"), SAN MARCOS COUNTY WATER DISTRICT, a County Water District (hereafter "SAN MARCOS"), LEUCADIA COUNTY WATER DISTRICT, a County Water District (hereafter "LEUCADIA"), and the ENCINITAS SANITARY DISTRICT, a Sanitary District (hereafter "ENCINITAS"). RECITALS This Supplement is made in reference to the following facts: A. The parties hereto own and operate the Encina Joint Sewer System pursuant to a Basic Agreement dated July 13, 1961, which has been modified and supplemented. B. From time to time the ownership and capacity rights of the parties hereto in and to Unit "I" (treatment plant) and Unit "J" (disposal) have been changed by agreement of the parties. C. An enlargement of the Encina Water Pollution Control Facility is currently being planned called Phase IV which will provide for an increase in the capacity of Units I and J. This expansion is necessary to meet future flowage demands of the parties hereto and environmental protection requirements of applicable law. '""*"*' Ref: 20.4852.1 D. The parties hereto desire to transfer the outfall pumps and appurtenances from Unit I (treatment) to Unit J (disposal). E. The parties hereto again desire to change their respective ownership and capacity rights in Units "I" and "J", thereby balancing their respective ownership and capacity rights in said Units "I" and It T "J . F. The parties hereto desire to establish solids and liquid capa- cities of Unit "I" upon completion of Phase IV enlargement, and to provide for purchase or sale by the various parties hereto in order to balance capacities in Units "I" and "J". G. This Supplement to the Basic Agreement is made pursuant to the provisions of Article 1, Chapter 5, Division 7, Title 1, of the Government Code of the. State of California (commencing with Section 6500), relating to the joint exercise of powers common to all public agencies; in this case being Vista, Carlsbad, Buena, San Marcos, Leucadia and Encinitas, each of which is authorized to contract with the other pursuant to said provision of the Government Code. NOW, THEREFORE, the parties hereto agree as follows: Section 1. LIQUID CAPACITY OF UNIT "I" UPON COMPLETION OF PHASE IV The maximum liquid capacity of Unit "I" upon completion of Phase IV shall be 36.0 MILLION GALLONS PER DAY (36 MGD) average daily flow. Section 2. SOLIDS CAPACITY OF UNIT "I" UPON COMPLETION OF PHASE IV Upon completion of Phase IV, the maximum solids capacity of Unit "I" shall be 38.0 MILLION GALLONS PER DAY (38 MGD) average daily flow. Ref: 20. 485 2. 2 Section 3. MAXIMUM CAPACITY OF UNIT "J" UPON COMPLETION OF PHASE IV Upon completion of Phase IV, the disposal capacity of Unit "J" shall be 38.0 MILLION GALLONS PER DAY (38 MOD) average daily flow. This capacity rating assumes that the wet weather peaking factor on the flows to Unit J (including treated flows from Unit I and reclamation failsafe flows) shall continue to be less than 2.13, and all the par- ties hereto agree to make good faith efforts to ensure that the wet weather peaking factor on the flows to Unit J remains below 2.13. Section 4. ALLOCATION OF OWNERSHIP AND CAPACITY IN UNITS "I" AND "J" The Unit I (liquid and solids) and Unit J (disposal) capacities and ownerships upon completion of Phase IV shall be as follows: UNIT I UNIT J LIQUID SOLIDS DISPOSAL AGENCY Cap,MGD | Owner% Cap,MGD | Owner % Cap,MGD | Owner % VISTA CARLSBAD LCWD SMCWD BUENA ENCINITAS TOTAL 8.05 9.24 7.11 7.54 2.26 1.80 36.00 22.36 25.67 19.75 20.94 6.28 5.00 100.00 8.05 9.24 7.86 7.54 3.51 1.80 38.00 21.18 24.32 20.68 19.84 9.24 4.74 100.00 8.05 9.24 7.86 7.54 3.51 1.80 38.00 21.18 24.32 20.68 19.84 9.24 4.74 100.00 Ref: 20.4852.3 Section 5. COST OF PHASE IV AND ALLOCATION OF COST AMONG THE PARTIES HERETO The total cost of Phase IV, including design, construction management and other attendant costs, some of which has heretofore been contri- buted by the parties hereto pursuant to the 36th Supplement, shall be no greater than $48,792,000 unless otherwise hereafter agreed in writing by the parties hereto. The basis for such costs and for the allocation of same is shown in Exhibit "A" attached hereto and incor- porated herein by reference. The costs for Phase IV are allocated and apportioned as follows: AGENCY AMOUNT % VISTA $ 5,020,000.00 10.29 CARLSBAD $11,278,000.00 23.115 BUENA $ 6,181,000.00 12.67 SAN MARCOS $11,902,000.00 24.39 LEUCADIA $12,898,000.00 26.435 ENCINITAS $ 1,513,000.00 3.10 TOTAL $48,792,000.00 100.00 Ref.20.4852.4 W<^ ^" Final costs will be calculated following completion of Phase IV construction and shall be based on the actual project costs spread according to the engineer's final cost accounting and the method of cost allocation shown in Exhibit "A". Section 6. TIME FOR FUNDING The costs for each party hereto as reflected above in Section 5, will be deposited with the EAA, or will be guaranteed in accordance with the provisions of a separate agreement between each agency and the EAA. Said deposits shall be made/ or agreements shall be approved by the EAA, prior to advertisement of Phase IV construction contracts. Section 7. INVESTMENT OF FUNDS Funds deposited with EAA shall be invested in accordance with the duly adopted Investment Policy of the EAA and shall be drawn upon as necessary to make payments as due. Any interest accrued on funds deposited with the EAA for the Phase IV Project shall be credited to the parties hereto in proportion to their participation to their respective deposits. Section 8. FINANCIAL RECORDS EAA shall keep accurate and detailed accounting records of all monies received and/or paid by it. •<„,»/Ref: 20.45852.5 Section 9.FINAL ADJUSTMENT Following completion of the Phase IV construction and development of final cost allocations as described in Section 5, EAA shall disburse any remaining funds and/or collect funds as necessary from the parties hereto. Section 10. THIS SUPPLEMENT SUPERCEDES 36TH SUPPLEMENT To the extent that any provision in this Supplement is in conflict with any provision of the 36th Supplement to the Basic Agreement, this Supplement shall be controlling. As of the date this Supplement is adopted, EAA shall replace Leucadia as Administrator of the Phase IV Project. Section 11. COUNTERPARTS This Agreement may be executed in counterparts, and upon execution thereof by all parties named on Page 1 hereof, all such counterparts shall be deemed to constitute this Agreement among the parties hereto. IN WITNESS WHEREOF, each party hereto has caused this Agreement to the Basic Agreement to be signed by its representative officials heretofore duly authorized by the legislative bodies thereof. Ref: 20.4852.6 CITY OF VISTA Approved by Resolution No. on BY: Mayor CITY OF CARLSBAD Approved by Resolution No. on BY: Mayor BUENA SANITATION DISTRICT Approved by Resolution No. on BY: Clerk of the Board of Supervisors SAN MARCOS COUNTY WATER DISTRICT Approved by Resolution No. on BY: President BY: Secretary LEUCADIA COUNTY WATER DISTRICT Approved by Resolution No. on BY: President BY: Secretary ENCINITAS SANITARY DISTRICT Approved on Resolution No. on BY: President SUPPUE>gyr TO THE BASIC AGREEMENT ATTACHMENT A 1. PVkase IV capacity shall be allocated on the basis of additional treatment and disposal capacities needed to meet balanced projected year 2010 needs. T-*» method shall be as follows: a. Year 2010 needs for liquid treatment and solids handling shall be pro- jected by each member agency (41.4 and 43.4 MGD total, respectively). b. Additional needed capacity shall be found by subtracting existing UnitI ownership (22.S M3D total) from the projected year 2010 needs. c. Each member agency shall be allocated that portion of the available Phase IV Onit I liquid capacity (13.5 M3D total) that their projected additional needed liquid capacity represents of the total projected additional needed liquid capacity (18.9 MGD total). d. Each agency's revised total Unit I liquid capacity will then equal their existing Unit I capacity plus the Phase IV Unit I liquid alloca- tion determined in step c. e. Unit I solids and Unit J capacity shall be distributed to equal revised Unit I liquid capacities in M3D, except that the aditional 2 M3D available shall be made available for upstreaa reclamation, with 1.25 MGD going to Buena and 0.75 HGD to Leucadia. f. Resulting Onit I liquid and solids and Onit J ownerships shall be determined by dividing the allocated capacities determined in steps d and e by the total Onit I liquid and solids and Onit J capacity. Projected Onit I needs and Phase IV allocations are as follows: cvtiin nojtcTQ nit 2010won nn i totn mro UMKITI vim CHL3AI IXBCIBU 111 UKOSmilociims KO i.750 5.711 3.750 4.000 1.034 1.2SO won.MI 1.57 10.15 0.45 0.15 2.75 2.03 MUKI BISM6IL, Kf 1.57 10.45 9.20 0.9S 4.00 2.03 PIWKTU ITU 2010 AfiO*l BTjDOfr CtffcClTTnoon. Ml 1.120 4.524 4.700 4.950 1.711 0.700 sons. KB 1420 4.9J4 . 5.450 4.550 2.944 1,700 rust nuisance US> 01 itt'l 2010 ED TOTU. ULOUTO UHCFH UOOD. MB 1JO 3.52y(H 5.54 1.23 0.54 tarn, ucm. M» H» 1.30 3.52 4.11 3.54 2.44 I.S4 .05 .24 .11 .24 .00 SCUK 1 MSKS1L. KB I.OS 9.24 7.54 3.51 1.00 torn 22.5 41.40 43.4ft 11.900 20.9M 13.50 1S.50 36.00 M.OO EXHIBIT A Ref: Resulting capacities and ownerships are as follows: UNIT I UNIT J AGINOf VISTA CARLSSAD LOO SO© Cap 8 9 7 7 2 LIQU ,MGDp ,05 24 11 54 26 ENCXSTTAS TOTAL 1.80 36.0 I ID Owner! 22.36 25.67 19.75 20.94 6.28 5.00 100.00 SOLUS Cap, MOD Owner% 38.0 DISPOSAL Cap,M3D J Owner! 21.18 24.32 20.68 19.84 9.24 4.74 38.0 100.00 2. Phase IV cost shall be allocated as follows: All costs shall be allocated by unit process and anong flow, BOD, and suspended solids in the manner reccmiended for revenue programs by the State Water Resources Control Board. The replacement value of the existing Onit I and Onit J facilities at the mid-point of construction (projected ENRLA of 6465) shall be deter- mined. In determining replacement value, grant funding shall be included except for the grant funding used to pay for the "oversized" portion of "oversized" items (i.e., items sized or undertaken for the ultimate site capacity, such as site grading and paving, piping, etc.). . Dollar ownership of the existing facilities shall be determined by multiplying existing ownership percentages times the replacement values determined in step b. The cost of the proposed Phase IV facilities at the mid-point of construc- tion (projected EXRLA of 6465) shall be estimated by the design engineer. The total value of the ZWPCF following construction of Phase IV shall be estimated by adding the replacement value of the existing facilities (determined in step b) to the estimated cost of the Phase IV project (determined in step d). Needed dollar ownership of the EWPCF following construction of Phase IV shall be determined by multiplying the revised Chit I liquid and solids and OAit J ownerships (determined in paragraph 1 above) by the total value of the EHPCP following construction of Phase IV (determined in step •). Phase IV cost allocations shall be calculated by subtracting existing dollar ownerships (determined in step c) from needed dollar ownerships following construction of Phase IV (determined in step f.) Credits and buyins for existing facilities are automatically included in this calculation and need not be calculated separately; however, the dollar values of each are included below for background. lef: 20.4852.9 Initial (estunated) Phase IV cost allocations in dollars and percent of total re as fellows: Agency VistaCarlsbad LeucadiaSan Marcos BuenaEncinitas Total Existing Ownership/ $ 22,740,000 20,585,000 13,314,000 14,099,000 4,436,000 4.694,000 79,868,000 Projected Ownership Estimated Following Phase IV Phase IV Construction. $ I J 27,760,000 31,663,000 26,212,000 26,001,000 10,617,000 6,207,000 128,660,000 5,020,000 11,278,000 12,898,000 11,902,000 6,181,000 1,513.000 48,792,000 Effective Credits/Buy ins $ (5,455,000) ( 745,000) 2,916,000 2,091,000 2,023,000 ( 830.000) I of futurt cSStal costs (e.g., for solids disposal, permanent effluent art/or a second outfall) shall be accomplished in lUce nanner.