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HomeMy WebLinkAbout1989-03-28; City Council; 9937; 43rd supplement to EncinaJoint Power agreementQ LU DCO. CI^OF CARLSBAD - AGENL/^BILL ABM *?£? 3*7AHW it*?' MTG. 3-2R-8Q DEPT. FNir. TITLE: 43RD SUPP1EMENT TO ENCINA JOINT POWER BASIC AGREEMENT DEPT. HD.^3 CITY ATTYJJ CITY MGR.^ yLL • ffi\s? O < OO RECOMMENDED ACTION: Adopt Resolution No. /f- ^ approving the 43rd Supplement to the Encina Joint Powers Basic Agreement. ITEM EXPLANATION: The 39th Supplement to the Encina Joint Powers Basic Agreement, dated January 11, 1989, allocated capacity and costs of the Phase IV expansion and established a project cost ceiling of $48,792,000. The scope of the project has been expanded and the revised estimated cost exceeds the previously adopted ceiling. The 43rd Supplement to the Basic Agreement increases the cost ceiling of the project to $54,180,000 and reallocates costs based on the new ceiling. The increase is due to additional funding required for odor control and completion of Avenida Encinas. The 43rd Supplement allocates costs for the Phase IV expansions as follows: AGENCY AMOUNT % VISTA $ 6,199,000 11.44 CARLSBAD 12,631,000 23.31 BUENA 6,584,500 12.15 SAN MARCOS 13,006,000 24.01 LEUCADIA 13,983,000 25.81 ENCINITAS 1,776,500 3.28 TOTAL $54,180,000 100.00 Final costs will be calculated following completion of Phase IV construction and shall be based on the actual project costs according to the engineer's final cost accounting. FISCAL IMPACT: The 43rd Supplement increases Carlsbad's estimated share for the Phase IV expansion from $11,278,000 to $12,631,000. Carlsbad's share of expansion costs will ultimately be funded through sewer connection fees although there are currently insufficient revenues in the account 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. PAGE TWO OF EXHIBITS: 1. Resolution 67~9* approving the 43rd Supplement to the Encina Joint Powers Basic Agreement. 2. 43rd Supplement to Basic Agreement. 1 RESOLUTION NO. 89"93 2 •z A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING EXECUTION OF THE 43RD SUPPLEMENT A TO THE ENCINA JOINT POWERS BASIC AGREEMENT PROVIDING THE INCREASE AND REALLOCATION OF COSTS FOR THE ENCINA WATER 5 POLLUTION CONTROL FACILITY PHASE IV EXPANSION PROJECT. 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 11 WHEREAS, all parties to said Basic Agreement have agreed that an increase 12 in the cost of the expansion established in the 39th Supplement to said agreement 13 is required to fund the enlarged scope of the Phase IV Project; and 14 WHEREAS, it is necessary to allocate and apportion the cost of said 15 Phase IV Expansion and the 43rd Supplement provides for such apportionment and 15 allocation; and WHEREAS, the Joint Advisory Committee to the Encina Joint Powers has 13 unanimously approved the said 43rd Supplement to the Basic Agreement; and 19 WHEREAS, it is for the best of the City of Carlsbad that the said 43rd 20 Supplement to the Basic Agreement be executed by this City. 21 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad 22 as follows: 23 /// 24 /// 25 /// 26 /// 27 /// 28 /// 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 Section 1. That the Mayor of the City of Carlsbad be, and is hereby authorized and directed to execute the 43rd Supplement to the Encina Joint Powers Basic Agreement. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 28th day of March , 1989 by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Mamaux, Larson, Pettine NOES: None ABSENT: None ATTEST: LEWIS, Mayor ALETHA L. RAUTENKRANZ, City Clejrk (SEAL) FORTY-THIRD SUPPLEMENT TO BASIC AGREEMENT TO PROVIDE FOR REVISED ALLOCATION OF COSTS OF PHASE IV EXPANSION Ref: 6486 This Forty-Third Supplement to the Basic Agreement is made and entered into as of this day of , 1989, 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 expansion 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 Ref: 6486.1 applicable law. D. The Thirty-Ninth Supplement to the Basic Agreement, dated January 11, 1989, allocated capacity and costs of the Phase IV expansion and established a project cost ceiling of $48,792,000. E. The scope of the Phase IV project has been expanded and the revised estimated project cost exceeds the previously adopted cost ceiling. The parties hereto desire to revise the Phase IV cost ceiling and to revise the cost allocations based on the latest engineer's estimated and the revised cost ceiling. F. 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. HOW, THEREFORE, the parties hereto agree as follows: Section 1. 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 contributed by the parties hereto pursuant to the 36th Supplement, shall be no greater than $54,180,000 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" Ref: 6486.2 attached hereto and incorporated herein by reference. The cost for Phase IV is allocated and apportioned as follows: AGENCY AMOUNT i VISTA $ 6,199,000 11.44 CARLSBAD 12,631,000 23.31 BUENA 6,584,500 12.15 SAN MARCOS 13,006,000 24.01 LEUCADIA 13,983,000 25.81 ENCINITAS 1,776,500 3.28 I TOTAL $54,180,000 100.00 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 2. THIS SUPPLEMENT SUPERCEDE8 39TH SUPPLEMENT To the extent that any provision in this Supplement is in conflict with any provision of the 39th Supplement to the Basic Agreement, this Supplement shall be controlling. Section 3. 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. Approved by Resolution No. on Ref: 6486.3 CITY OF VISTA BY: Mayor Approved by Resolution No. 89-93 on 3/28/89 CITY OF, BY: CLAMJE A. LEWisTMayor Approved by Resolution No. on BUENA SANITATION DISTRICT BY: Clerk of the Board of Supervisors Approved by Resolution No. on SAN MARCOS COUNTY WATER DISTRICT BY: President BY: Secretary Approved by Resolution No. on LEUCADIA COUNTY WATER DISTRICT BY: President BY: Secretary Approved by Resolution No. _on ENCINITAS SANITARY DISTRICT BY: President %** Ref: 6486.4 FORTY-THIRD SUPPLEMENT TO THE BASIC AGREEMENT EXHIBIT A 1. Phase IV cost shall be allocated as follows: a. All costs shall be allocated by unit process and among flow, BOD, and suspended solids in the manner recommended for revenue programs by the State Water Resources Control Board. b. The replacement value of the existing Unit I and Unit J facilities at the mid-point of construction (projected ENRLA of 6465) shall be determined. 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.). c. Dollar ownership of the existing facilities shall be determined by multiplying existing ownership percentages times the replacement values determined in step b. d. The cost of the proposed Phase IV facilities at the mid- point of construction (projected ENRLA of 6465) shall be estimated by the design engineer. e. The total value of the EWPCF 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) . f. Needed dollar ownership of the EWPCF following construction of Phase IV shall be determined by multiplying the revised Unit I liquid and solids and Unit J ownerships (determined in Exhibit A of the Thirty-Ninth Supplement) by the total value of the EWPCF following construction of Phase IV (determined in step e) . g. 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. Ref: 6486.5 Estimated Phase IV cost allocations in dollars and percent of total are as follows: Agency Vista Carlsbad Leucadia San Marcos Buena Encinitas Total Existing Ownership, 22,739,000 20,585,000 13,314,000 14,099,000 4,436,000 4.694.000 79,867,000 Projected Ownership Following Phase IV Construction. $ 28,938,000 33,216,000 27,297,000 27,105,000 11,020,500 6.470.500 134,047,000 Estimated Phase IV Cost $ 6,199,000 12,631,000 13,983,000 13,006,000 6,584,500 11.44 23.31 25.81 24.01 12.15 1.776.500 3.28 54,180,000 100.00 Effective Credit/Buyins $ (5,455,000) ( 745,000) 2,916,000 2,091,000 2,023,000 ( 830.000) Final Phase IV cost allocations will be determined following completion of Phase IV construction and will use the actual project costs spread according to the final engineer's estimate instead of the current engineer's estimate in steps d through g above. Actual ENRLA at mid-point of construction will be substituted for the projected value in step b.