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HomeMy WebLinkAbout1989-12-05; City Council; 10399; Vista Carlsbad wastewater treatment leaseCIT^OF CARLSBAD — AGENDQBILL AB#_ MTG. 12-5-89 DEPT..ENG. TITLE: VISTA/CARLSBAD WASTEWATER TREATMENT CAPACITY LEASE AGREEMENT RECOMMENDED ACTION: Adopt Resolution No. zo(5 o oo authorizing the City Engineer to execute a notice to the City of Vista of termination of Wastewater Treatment Capacity Lease Agreement approved September 13, 1988. ITEM EXPLANATION: On September 13, 1988, the Council approved the subject lease agreement with the City of Vista to secure up to 1.2 million gallons a day (MGD) of wastewater treatment capacity. This lease was required to insure capacity availability to meet Growth Management Standards. At the time the lease was executed, Carlsbad's reported flows at Encina were nearing its 5.72 MGD capacity. The reported flows for Carlsbad were derived based on a theoretical calculation assuming 220 gallons per day per equivalent dwelling unit. (EDU) During this past year Encina has implemented an automated metering system and is now reporting actual metered flows for all agencies. The result of this flow metering has reduced Carlsbad flows from 5.79 MGD to 4.80 MGD in the month of October. Vista's flows have correspondingly increased. In addition to the flow reduction, since the lease was executed the Encina facility has been re-rated from 22.5 MGD capacity to 27.16 MGD. Carlsbad's capacity correspondingly increased from 5.72 MGD to 6.20 MGD. Given the decrease in flow, the interim increase in capacity and initiation of the Phase IV expansion of Encina, staff recommends the lease with Vista be terminated. FISCAL IMPACT: Cancellation of the lease will save the city up to $150,000 in lease payments over the 2 year period required to complete the Phase IV expansion. EXHIBITS: 1. Resolution No. 2. Wastewater Treatment Capacity Lease Agreement. RESOLUTION NO. 89-421 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY ENGINEER TO EXECUTE A NOTICE TO THE CITY OF VISTA OF TERMINATION OF THE WASTEWATER TREATMENT CAPACITY LEASE AGREEMENT APPROVED SEPTEMBER 13. 1988. 4 WHEREAS, the City of Carlsbad no longer requires the 5 additional wastewater treatment capacity provided by the City of Vista pursuant to the Wastewater Treatment Capacity Lease Agreement „ approved September 13, 1988; and WHEREAS, the Wastewater Treatment Capacity Lease Agreement 8I requires the City of Carlsbad to provide the City of Vista thirty 9 (30) days written notice prior to termination of the lease. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the 1 City of Carlsbad, California, as follows: 12 i. That the above recitations are true and correct. 13 2. That the City Engineer is authorized to execute a thirty 14 (30) day written notice to the City of Vista that the City of Carlsbad is terminating the Wastewater Treatment Capacity Lease Agreement approved on September 13, 1989, pursuant to terms of the agreement. 17 y PASSED, APPROVED AND ADOPTED at a regular meeting of the 18 Carlsbad City Council held on the 5th day of December 1989 19 by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine and Larson NOES: None 22 ABSENT: None 23 24 tLAUDE A. EEWIS, Mayor ATTEST: 25 26 ALETHA L. RAUTENKRANZ, City Clerk 27 (SEAL) 28 WASTEWATER TREATMENT CAPACITY LEASE AGREEMENT This Agreement is made and entered into to be effective , 1988 by and between the City of Vista (hereinafter "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. 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 conformance 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 either of the following occurs. a. VISTA shall provide written notice to CARLSBAD 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 shall provide 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 limit in any way 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 f or $ 19, 000.00 per year, 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. convenants and conditions benefit of, and bind the parties hereto. This Agreement and its terms, shall apply to, inure to the successors and assigns of the 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. Any notice or other instrument shall be deemed delivered if in the United States mail and 17. Written Notice. required by this agreement deposited, certified mail, 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 CITY OF VISTA By: By: Title: Title: Attest: Attest: City Clerk City Clerk