HomeMy WebLinkAbout1990-06-26; City Council; 10694; Encina agreement and budgetCARLSBAD — AGENCQBILL
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- ""AMENDMENT TO ENCINA BASIC AGREEMENT AND
APPROVAL OF FISCAL YEAR 1990-91
ENCINA BUDGET
RECOMMENDED ACTION:
Adopt Resolution No.approving an amendment to the Encina Basic Agreement
and Resolution No. 90~£/0 approving the Fiscal Year 1990-91 Encina Budget.
ITEM EXPLANATION:
The Encina Joint Advisory Committee (JAC) has unanimously recommended that member
agencies approve the 1990-91 Revised Encina Budget Recommendations (Exhibit 2). The
budget represents an increase of $5,979,026 or 21.6% over the FY 1989/90 budget. The
following summary by program has been reproduced from the attached budget document.
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Program
Operating Budget
Plant (Unit I)
Outfall (Unit J)
Buena Vista P.S.
Agua Hedionda P.S.
Source Control
Flow Metering
Capital Budget
Phase IV
Solids Mgmt
Bldg. Improvements
Capital Acquisitions
TOTAL BUDGET
FY 1989/90
Budget
$5,610,479
$29,500
$249,300
172,175
127,900
N/A
$6,189,354
$20,382,000
924,500
50,000
172,340
$21,528,840
$27,718,194
FY 1990/91
Budget
$6,452.800
$49,000
237,550
161,200
178,470
41.300
$7,120,320
$22,070,000
4,204,00
100,000
202.900
$26,576,900
$33,697,220
Percent
Change
15.0%
66.1%
39.5%
N/A
15.0%
8.3%
354.7%
100.0%
17.7%
23.4%
21.6%
As part of budget deliberations, JAC considered the allocation of the Encina Plant (Unit I)
budget element to member agencies. That element represents operating expenses for the
plant and is proportioned to the member agencies depending on actual plant usage and
percentage ownership. Given the facts that: 1) ownerships change substantially for member
agencies as a result of the on going Phase IV project and: 2) that project will be well beyond
50% complete by the end of FY 1990/91, the JAC recommends an amendment to the Basic
Agreement to provide for interim Unit I ownerships during the Phase IV project.
The amendment establishes interim Unit I percentage ownerships based on a 50% Phase
IV completion effective July 1, 1990. That is, the existing Unit I (Phase III) ownership
percentage for each agency is adjusted to relfect half of that agency's increase or decrease
of percentage ownership at the completion of Phase IV. The agency's ownership expenses
to operate and maintain the plant are likewise adjusted to reflect these interim percentages.
Since no additional treatment capacity is available until Phase IV is completed, the new
percentage ownerships may result in a particular agency incurring a shortfall of capacity
(until the completion of Phase IV) that it might not have under it's original Phase III
PAGE TWO OF AB# /^,
percentages. Therefore, the amendment provides for interim leases of Unit I capacities
(Liquid and Solid) on a prorated basis from those agencies with excess Unit I capacity. The
shortfall would be established when, for a continuous three month period, an agency
average flows (liquids and/or solids) to Unit I are in excess of it interim capacity. Payments
would be required for every month beginning with the first of the three months and would
be paid at the end of the year after the annual audit of Encina. The cost would be $36,250
per year per million gallons per day (MGD) of solids and/or $36,250 per year per MGD of
liquid capacity used.
Upon the completion of Phase IV (now scheduled for February 1 992) the interim percentages
would revert to the final Phase IV ownership percentages and capacities. The provision for
interim leases would no longer apply. All agencies will be in a positive capacity situation
with the completion of Phase IV.
FISCAL IMPACT:
The City of Carlsbad's share of the Encina 1990-91 Budget is $8,072,305.
EXHIBITS:
1 . Resolution No.
•2. Encina Revised Budget Recommendations are on file in the City Clerk's office.
3. Resolution No.
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RESOLUTION NO. 90-209
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, ADOPTION AMENDMENTS TO THE
ENCINA JOINT POWERS BASIC AGREEMENT PROVIDING FOR
INTERIM UNIT I OWNERSHIP DURING PHASE IV EXPANSION
WHEREAS, the City is a party to the Encina Joint Powers Basic Agreement entered into
on July 13,1961 for the acquisition, construction,ownership, operation and maintenance of the
Encina Joint Sewer System; and
WHEREAS, the Thirty-Ninth Supplement to the Encina Basic Agreement, executed
December 13,1988, provides of the allocation of capacity (ownerships) and costs of Phase IV
expansion upon completion of said Phase; and
WHEREAS, the Twenty-Seventh Supplement to the Basic Agreement, executed July 16,
1985 provides for Member Agency sharing of Unit I operation and maintenance costs based
on ownership and usage; and
WHEREAS, the City Council of the City of Carlsbad desires to amend the Thirty-Ninth
Supplement to provide an interim ownership and capacity allocation of Unit I during Phase IV
construction.
NOW THEREFORE, BE IT RESOLVED by the City Council Board of Directors of
as follows:
Section A. That the Thirty-Ninth Supplement to the Basic Agreement be amended as
follows:
A new Section 10 be added to read:
Section 10 ALLOCATION OF INTERIM OWNERSHIP AND CAPACITY IN UNIT I -
The interim Unit I (Liquid and Solids) ownerships as of July 1, 1990 during
construction of Phase IV, based on 50% completion, shall be as follows:
CAPACITY OWNERSHIP %
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26.18
25.53
5.44
19.36
18.21
5.28
100
7.14
6.94
1.93
5.25
5.21
1.44
27.90
25.59
24.86
6.92
18.81
18.67
5.15
100
AGENCY CAPACITY (MGD)/ OWNERSHIP%
VISTA 6.39
CARLSBAD 6.23
BUENA 1.33
VALLECITOS 4.72
LEUCADIA 4.44
ENCINITAS 1.29
24.40
Upon Completion of Phase IV onwerships and capacities will be allocated according to
Section 4 of the Thirty-Ninth Supplement to the Basic Agreement.
Section B. During the period of interim Unit I ownership and capacity allocations prior
to Phase IV completion, as described above, the Member Agencies agree that when any
Member Agency's Unit I flows exceed its interim capacity allocation for the treatment of solids,
liquids, or both, for any continuous three month average, such Member Agency shall release
capacity equal to such excess from all of the Member Agencies with such unused capacity
rights on a pro rata basis. Such flows shall be based on measured (ADS) flows, to the
maximum extent feasible. The use of capacity on a temporary basis shall be paid based upon
the HYA Associates August 1988 Report calculation allocating 50 percent of the value of the
available capacity to the treatment of solids and 50 percent to the treatment of liquids, for a total
value of $72,500 per mgd per year.
Section C. A new Section 11 will be added to said supplement to read:
Section 11 Definition of Phase IV Completion - For purpose of
Phase IV capacity allocated under Section 4., "completion" is
defined as the time when the entire additional treatment train is
available for use in compliance with regulatory permits (NPDES,
APCD, etc.) and the Western Summitt/TIC construction contract.
Section D. Existing Section 10. and 11. are to be renumbered 12 and 13, respectively.
Section E. These amendment to the Basic Agreement shall become effective on the day
of adoption of a resolution approving the amendment by the last of the governing bodies of the
member agencies to so act.
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Section F. Following adoption of these amendments, the EAA shall issue a revised copy
of the amended portions of the Basic Agreement and its supplements.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
held on the 26th day of June . 1990 by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT:
ATTEST:
ayor
ALETHA L RAUTENKRANZ, City Clerk
(SEAL)
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Resolution No. 90-210
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING THE 1990-91 FISCAL
YEAR BUDGET OF THE ENCINA ADMINISTRATIVE AGENCY IN
ACCORDANCE WITH THE JOINT POWERS BASIC AGREEMENT
WHEREAS, The City of Carlsbad is party to the Encina Joint Powers Basic Agreement
entered into on July 13, 1961 for the acquisition, construction, ownership, operation and
maintenance of the Encina Joint Sewer System; and
WHEREAS, the Encina Basic Agreement, requires approval for the budget of the Encina
Administrative Agency ("EAA") by the Member Agencies following the recommendation of the
Joint Advisory Committee ("JAC"); and
WHEREAS, the City of Carlsbad is concurrently approving the modification of the Encina
Basic Agreement regarding the allocation of the Interim Unit I ownership percentages, as
recommended by the JAC on June 6, 1990; and
WHEREAS, the JAC thereafter approved the Fiscal Year 1990-91 budget of the EAA on
June 6, 1990; and
WHEREAS, the City Council of the City of Carlsbad desires to approve said budget and
provide for payment of its share of such expenses in accordance with the allocation provided
in the Basic Agreement, as modified;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, as
follows:
Section 1: That the Fiscal Year 1990-91 budget of the EAA, as approved by the JAC on
June 6, 1990 in the amount of Thirty Three Million, Six Hundred Ninety Seven Thousand, Two
Hundred Twenty Dollars ($33,697,220) is hereby approved.
Section 2. The City Manager is hereby authorized to make payments on behalf of
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this agency to the EAA in accordance with the budget, as approved by JAC, and in accordance
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with The Encina Basic Agreement.
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• Section 3. This resolution shall be forwarded to the EAA immediately upon its execution.
5 PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
5 held on the 26th day of June . 1990 by the following vote, to wit:
7 AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
8 NOES: None
9 ABSENT: None
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12 ATTEST:
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ALETHA L RAUTENKRANZ, City Clerk
15 (SEAL)
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