HomeMy WebLinkAbout1995-06-20; City Council; 13195; APPROVAL OF ENCINA AUTHORIZATION AGREEMENT AND FOUR MILLION DOLLAR BUDGET AMENDMENT TO FISCAL YEAR 95-96 ENCINA WASTEWATER AUTHORITY CAPITAL IMPROVEMENT PROGRAM FOR LAND ACQUISITION AND ASSOCIATED SERVICES.A AB ' '?. /' 5 TITLE: APPROVAL OF ENCINA AUTHORIZATION AGREEMENT AND
$4 MILLION BUDGET Ah4ENDMENT TO FY 95/% EWA
CAPITAL IMPROVEMENT PROGRAM FOR LAND MTG. 6%o-cL5L
DEPT. CMWD ACQUISITION AND ASSOCIATED SERVICES
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Cl# OF CARLSBAD - AGEgA BILL _I
RECOMMENDED ACTION:
Staff recommends the City Council approve Agreement Authorizing the Encina Wad
Authority to acquire land on behalf of the Encina Member Agencies and the $4 1
budget amendment to the FY 1995/96 EWA Capital Improvement Program fc
acquisition and associated services.
ITEM EXPLANATION:
Two Encina planning studies have identified possible needs for additional land:
Outfall Facility Plan (1992) and the 2020 Facility Plan Update (1993). These
suggested land in the vicinity of the Encina Treatment plant may be needed fc
equalization andlor administrative office space.
ADOPT RESOLUTION NO. y$-/dr
A. How Equalization - The 1992 Ocean Outfall Facility Plan indicated that I
million gallons of permanent flow equalization may be needed to meet disposa
of the Encina service area. The Plan suggested up to 4.5 acres of off site i
might be needed.
B. Administrative Space - The 2020 Facility Plan Update which was accepted
Board in 1993 indicated that up to 16,000 square feet of off-site administrative
space may be ultimately needed at build-out which was estimated to be the yea
The 16,000 acre square feet translates into approximately 3 to 5 acres depenc
one or two story construction, parking and setback requirements, road impro
requirements and compatibility with adjoining land uses.
C. Buffer area - Another possible land use for a portion of the adjacent propertj
of a buffer zone to minimize odor complaints in the future or possible concer
the future build-out on the existing plant site.
The City of Carlsbad also has indicated that approximately 10 acres may be desired a
to the Encina plant for Phase II of its Water Reclamation Master Plan and other use
Presently 37~t acres of undeveloped land immediately adjacent to the Encina Plant i
advertised for sale. In view of the preliminary status of the possible uses and as
acreage it is proposed the entire 37* acres be considered for acquisition for p
purposes. When a determination is made on the amount of excessive acreage, if a
acreage could be sold and/or leased out for other uses compatible with City of C
zoning and master planning.
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.. Page 2 of Agenda Bill No. I 3, I ci 5
As a result of these needs, the Encina Joint Advisory Committee (JAC) and the E
Wastewater Authority (EWA) board of Directors have both recommended the Ci
Carlsbad execute a letter authorizing the Encina Wastewater Authority to acquire la
behalf of the Encina Member Agencies.
Authorization Agreement - The EWA has the power to acquire land under the ten
the Revised Establishment Document. However, that document also requires thi
acquisition be unanimously approved by the member agencies as well as the term
conditions. Similar to the compost site acquisition agreement in 1989 an authoi
agreement (attached as Exhibit ‘A’) has been prepared.
This agreement authorizes the EWA to proceed with acquisition of the entire 37 acr
planning purposes. The agreement declares the intended uses of the site are foi
equalization and administrative facilities as well as a buffer zone and a City of Ca
reclaimed water facility . Provision is made for a portion of the 37 acres to be
available to Carlsbad for the reclamation facility subject to a future agreement. A I:
for the acquisition must have been unanimously approved by the member agencies
to acquisition.
This agreement also authorizes the EWA to use condemnation powers, if nece
subject to certain conditions. The ownership percentage of the member agenc
established (see Exhibit ‘B”). It is based on the existing ownership of the existing
(Unit I).
The agreement provides that title to the acquired land be in the name of Carlsbad i
for the member agencies. This is similar to the existing 25 acre Encina plant site
In addition, the JAC and EWA Board of Directors have recommended approval o
million budget amendment (as Exhibit ‘C‘) to the FY 95/96 EWA Capital ImproL
Program for land acquisition and associated services.
$4 Million Budget - A budget of $4 million is proposed to cover anticipated ex
(appraisal, negotiation, survey, title report, environmental, etc.) as well as other pc
expenses (condemnation, incidental engineering, etc.) and the actual land cost. ’I
million prorated among the member agencies is shown on the attached Land Pu
Analysis table (see Exhibit ID’). Also shown on the table is the basis of the prc
ownerships i.e. historical cost that each agency has invested in the plant.
The actual final acquisition costs may be different than $4 milIion and for corn]
sake we have shown the prorated shares of a $2 million and a $3 million acqi
effort.
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Page 3 of Agenda Bill No. i 3, I Gr 5
The source of funds for the acquisition are left up to individual member agencies.
attached table entitled “Excess Capital Funds” shows a summary estimate of funds fol
Encina projects that is available to the member agencies. A portion of the excess i
are in the County Pooled Fund and if withdrawn would be subject to any limit?
andlor penalties in effect at the time of withdrawal. If the EWA and member age
agree with proceeding with acquisition it would probably be at least three months 1
a deposit into escrow would be needed.
Appraisal and Negotiation Services - It is proposed that the City of Carlsbad pr
appraisal and land acquisition negotiation services in accordance with the terms ou
in the attached letter agreement. The services would not begin until the member agt
Rave approved the authorization agreement and $4 million budget. Negotiations 7
not be concluded by Carlsbad without approval by the EWA Board of Directors
indicated in the letter agreement it is estimated the services would cost $12,500.
Environmental and Surveying Services - It is proposed that an environmental “appi
be conducted on the 37 acre site before concluding negotiations to make sure no 01
biological or cultural constraints exist on the property.
Other Services:
Legal services associated with the acquisition would be provided to the EN
Weissburg and Aronson, Inc., the EWA Board Attorney. Unless condemnation is nec
their services can be provided under the basic services and budget for the EWA.
Public information services would be provided by Katz and Associates under the
of the amendment approved at the April 1995 meeting.
FISCAL IMPACT:
The City of Carlsbad’s share of the $4.0 million budget amendment is 24.81% or $9S
The City presently has $1,157,114 on deposit with Encina to fund future projects. A
of the $1,157,114, or $988,815 has been set aside for the City’s share of the COT
project that has since been abandoned. Staffs recommendation is to transfer the corn
project money to fund the acquisition of the property. It is anticipated that interest e;
on cornposting project funds will make up the balance of the required amount.
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Page 4 of Agenda Bill No. 13, / c/ 5
EXHIBITS:
A. Agreement Authorizing the Encina Wastewater Autority to Acquire Land on E
of the Encina Member Agencies.
Precentage of Ownership In Unit “I”
Amended (A) Encina Wastewater Authority Capital Improvement Program E
Recommendations 1995196 Fiscal Year.
Encina Wastewater Authority, Land Purchase Analysis.
Resolution No. fG/&pproving the Encina Authorization Agreement and
Million Budget Amendment to FY 1995/96 EWA Capital Improvement Progm
Land Acquisition and Associated Services.
B.
C.
D.
E.
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May 11, 1995
AGREEMENT AUTHORIZING
THE ENCINA WASTEWATER AUTHORITY
TO ACQUIRE LAND
ON BEHALF OF THE ENCINA MEMBER AGENCIES
Ref:
This Agreement entered into on this day of 19
and among the CITY OF CARLSBAD, a general law city, the CI'
VISTA, a general law city, the LEUCADIA COUNTY WATER DISTRI(
county water district, the VALLECITOS WATER DISTRICT, a c1
water district, the ENCTNTTAS SANITARY DISTRICT, a county san
district, and the BUENA SANITATION DISTRICT, a county sanit
district, all hereinafter referred to as the PARTIES, anc
Encina Wastewater Authority, hereinafter referred to as the
RECITALS :
WHEREAS, the PARTIES own and operate the Encina Joint
System pursuant to a Joint Powers Agreement, commonly referr
as the "REVISED BASIC AGREEMENT" , as supplemented and amended
WHEREAS, the PARTIES are desirous of acquiring a parc
land for the purpose of planning possible limited addit
facilities for use in connection with the Encina Water Poll
Control Facility (WPCF) as well as providing a possible site
City of Carlsbad reclaimed water treatment facility; and
WHEREAS, the parcel of land (APN 214-05-101) is 1c
adjacent to the Encina WPCF southerly boundary and consis
approximately 37 acres of vacant undeveloped land; and
WHEREAS, the Encina Wastewater Authority (EWA) has beex
created by the PARTIES as the Operator/Administrator of the E
EXHIBIT 'A'
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May 11, 1995 Ref: :
Joint Sewer System; and
WHEREAS, the PARTIES have granted the EWA powers to
acquire lands including condemnation powers; and
WHEREAS, the PARTIES desire said Operator/Administrator
acquire the property on behalf of the PARTIES subject to the
and conditions specified herein; and
WHEREAS, in the event land is acquired, subsequent agree
would be executed and/or budgets would be approved for
planning, design, construction, operation, and maintenance c
additional facilities by the PARTIES; and
WHEREAS, in the event land is acquired, subsequent agrec
would be executed by the PARTIES conveying a portion of the 1;
the City of Carlsbad, if requested, for a reclaimed water tre;
plant:
NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Authorization to Act on Behalf of PARTIES: For the
purpose of facilitating the purchase of lands and rights of w
the planning purposes and the payment of all cost and ex
-incurred by or to be paid in connection with acquiring th
site, the EWA shall act on its own behalf and the behalf
PARTIES in acquiring lands and rights of way.
2. Uses of Site: The possible wastewater related uses of
acre site are contemplated to be buffer zone, administ
facilities, equalization reservoir for Encina effluent treE
secondary level, and, if requested by the CITY of CARLS
reclaimed water treatment facility. Any portion of the site 1
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May 11, 1995 Ref: :
ultimately not needed for public purposes may be made availabl
sale or lease in the future.
3. Reclaimed Water Treatment Facility: Upon the request o
CITY OF CARLSBAD a portion of the 37 acre site will be
available for a reclaimed water treatment facility under the
of an agreement unanimously approved by the PARTIES.
4. As a condition precedent to the EWA acqu
property, funds for the purchase price and associated cos
acquire the property must have been approved for such purpoi
the unanimous vote of the PARTIES.
5. Condemnation: In the event condemnation is required tc
acquire the property, the EWA is hereby authorized to proceec
condemnation only upon the unanimous approval of the EWA Bo,
Directors. In the event unanimous approval of the EWA Board
given the authorization may be requested from the PART1
accordance with the provisions of the Revised Establi
Document.
6. Payment of Funds: The PARTIES shall pay or cause to
be paid to the EWA the PARTY'S proportionate share of said ax
budget upon demand by the EWA. Funds shall be provided
PARTIES in the same percentage as the PARTY'S percentage o!
Ownership as of June 30, 1994 in Unit ltI" of the Joint Syste
percentages of ownerships are attached as Exhibit 'B'.
7. Authoritv to Hold Title: In the event that such E
acquired as permitted herein, title to any such real propert
be taken in the name of the CITY OF CARLSBAD, which title s
Bgdseted Funds:
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May 11, 1995 Ref: 266
held in trust for the PARTIES, until such time as the PARTI:
unanimously agree that said title shall be conveyed to any one
the other PARTIES or some other entity or public Joint Pow(
hereafter created by the PARTIES or their respective successors
interest.
8. -- Beneficial Interests of the PARTIES: The beneficial
interest of each of the PARTIES in any real property acquired sh
be in the same percentage as the PARTY'S percentage of ownershig
Unit III" (Plant) of the Joint System as shown in the June 30, 1
EWA Financial Information and Audit Report and restated in Exhj
A.
9. Execution in Counteruarts: This Agreement may be execute(
Counterparts, and when so executed by all PARTIES, all :
counterparts shall be deemed to constitute a single agreement ai
the PARTIES.
10. Authority for this Asreement i This agreement is made purs
to the powers granted to Joint Powers by the provisions of Sec
6500 et seq. of the California Government Code.
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May 11, 1995
Dated:
CITY OF VISTA
Dated: BY:
LEUCADIA COUNTY WATER DISTRICT
Dated: BY:
VALLECITOS WATER DISTRICT
Dated: BY:
ENCINITAS SANITARY DISTRICT
Dated: BY:
BUENA SANITATION DISTRICT
Dated: BY:
ENCINA WASTEWATER AUTHORITY
Dated: BY:
GAIL HANO, Chair
EWA Board of Directors
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.,
May 11, 1995 Ref: 266.1
EXHIBIT 'B'
PERCENTAGE OWNERSHIP IN UNIT III"
The Ownership of the acquired land shall be allocated to the Member Ag in the same percentages as their Ownership of the Joint System Unit I (
as presented in the June 30, 1994 EWA Financial Information and Audit
on the Schedule of Ownership of Property, Plant and Equipment and rest;
follows :
UNIT I
AG EMCY cost, $ % ---
VISTA 23,047,832 21.61
CARLSBAD 26,460,745 24.81
LICWD 21,693,331 20.34
VALLECITOS 21,586,678 20.24
8.16 BUENA 8,702,929
ENCINITAS 5,162,033 4.84
TOTAL 106,653,548 100.00
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FOO!X!NOTES
ENCIHA WASTEWATER AUTHORITII CAPITOL IMPROVEWENT PRWRAN
1995/96 FISCAL Y7KAR
1. Actual costs uBed when available. These costs do not include any remec
action that could be required in response to the Shellfish Protection of 1993. Unit I building improvements coats are from the February Year 2020 Facility Plan Update, escalated by 3 percent per year over three-year project postponement. Plant rehabilitation, cap
acqufaitiona and facility replacement coats are shown at ENRLA of 6 ALL other coats are ehown at an gHRLA of 6670, multiplied by 3 percent
each year between FY 1995196 and when the costs arm projected tl incurred. Therefore, "Total. column includes both preeent worth projected coots and has limited meaning.
2. Cogeneration optimization costs for FY 1995/96 are baaed on cur projections to complete convermion of three engines to clean technology. FY 1996197 costs are baaed on a major rebuild of
remaining two natural gas enginee.
3. FY 1995/96 CIP budget includes funding for initial efforts to 01 additional land. FY 1996197 casts are for planning effort to updatr
2020 building plan. It io anticipated that a new adminiatration bui: will be constructed and existing buildinge remodeled as part of building program. Coats beyond FY 1997/98 will be identified durinc planning effort in FY 1996197. Off-aite office lease expireo in 1
2000. The Board has adopted a goal of being out of the l8a.e apace b yair 2000.
4. Hajor capital outlays toward plant rehabilitation, The cost1 excerpted from the 1995/96 update of tho Hultiyear Master P11
Rehabilitation and Hajor Improvement Project8 , Cost6 beyond 2000/20[ assumed to bo a conatant $500,000 per year. Coete are includi
Encina'e operating budget.
5. Capital acquisitions (both new and replacement). Coots are not inc in Encina's operating budget,
6. Funding La included per the April 1992 Ocean Outfall Facility Hydraulic Testing Program and to pursue acquinition of additional la flow equalization and Facility Plan updating needed prior to expan8 Unit J capacity,
7. It fa anticipated that additional effluent disposal capacity wi needed at aaam tima in the future. The timing for an outfall p depends on th8 outcome of several iesuem currently undecided. unknowns include remedial actions in reaponem to tho Shellfish Prot
Act, the potential withdrawal of Valecitoe fran the Joint System, a record high wastewater flows from recent storms. A dispoaal alter will be selected following cocnpletion of necessary studfeo (e.g., n testing, disperaion modeling, etc. ) . Value included in eprea repreaents the estimated comt of constructing a now outfall para1 the exieting outfall. Other alternative. include paralleling ju nearehore portion of the exiating outfall (less costly), construc longer outfall (more coatly), and flow equalization (relative ca known at thi8 time). Cost shown baaed on mid-point of coneti occurring in FY 2003104.
These funds arm accumulated and held by individual agencies. Xncluc facilities through Phase IV.
Fr\USERS\HIKEF\l23\BUDGgT\CIP95NOT
8.
EXHIBIT 'C'
Page 2
@NCINA WASTRnlATER AUTHORIN 0
Land Purchase Analysts May 11,1995
Yallecrtos Leucadla Enanrtas Vlst;l Cartsbad Buena
Historical Cost
llnd 1 23,010,355 26,417,719 0,688,778 21,551,577 21,658,057 5,153,638
I--_-- --
Land 37,477 43,026 14,151 35.101 35,274 8,395
Total Unrt I Including Land 23,047,832 26,460,745 0,702,929 21,586.678 21,693.331 5,162.033
Total Percont 21.6 1% 24 81% 8.16% 20.24% 20.34% 4 8490
Aternative Assumed Land Acqusdion Ce
(Allacabon based upon Total Percent above)
432,200 496,200 163,200 404,800 406.800 96,BOC
648,300 744,300 244,800 607,200 610.200 145,201
864,400 992,400 328,400 809,600 813.600 193,60
EXCESS* CAPITAL - FUNDS**
Propctlon For The Date 6-30-95 May 3,1995
Vallecitos Leucadla Encindas p[*g V&& Cartsbad Buena
Compost Propd Residual 944,172 988,815 380.6 17 77!5,475 914,102 198,s
Phase IV *** 54,119 68,251 30,879 61,782 66,250 12,i
Biillding 11,713 17,966 8,065 16,121 16,7 13 3,'
Outfall - Unit J ?= 82,082 11,721) 41,140 45,354 w
Total 1 ,Oi 1,663 1,157,114 417,841 894,519 1,042,419 236,:
* Nd budgeted 94/95 or 95/96
** Estimation as d 6/30/95
*** Could be retunded during F94,M; however, mete IS a possibility of a porbon being
needed for addrbonal costs of widening of Avenida Enclnas.
EXHIBIT 'D'
FJ 11 -May-95 .C.\l23R3\MISC\IANDPUR WK3..pg 1
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RESOLUTION NO. 95-165
A RESOLUTION OF THE CITY COUNCIL OF THE CI'I
OF CARLSBAD, CALIFORNIA, APPROVTNG THE EN(
AUTHORIZATION AGREEMENT AND A $4 MILLION
AMENDMENT TO M 1995196 EWA CAPITAL IMPRO
PROGRAM FOR LAND ACQUISITION AND ASSOCIAT
WHEREAS, the City of Carlsbad is a member agency to the Encina
Agreement entered into on July 13, 1961, for the acquisition, for the acquisitior
ownership, operation and maintenance of the Encina Joint Sewer System; and
WHEREAS, the Encina Agreement requires approval for budget amen
Encina Wastewater Authority (EWA) by the Member Agencies following the re
of the Joint Advisory Committee (JAC); and
WHEREAS, the Encina Wastewater Authority (EWA) and the Encina
Committee (JAC) have recommended the City of Carlsbad be authorized to E
behalf of the Member Agencies; and
WHEREAS, Encina Planning studies have identified possible needs for ad(
flow equalization, and administrative facilities as well as a buffer zone; and
WHEREAS, the Encina Wastewater Authority (EWA) will provide a poi
to be made available to the City of Carlsbad for a water reclamation facility s
agreement;
!
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the (
as follows:
1. That the Agreement authorizing the Encina Wastewater Authority to
behalf of the Encina Member Agencies be approved.
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2. That the $4 million budget amendment to the FY 1995/96 EWA Capital 1
Program for land acquisition and associated services be approved.
3. That the City Manager be authorized to execute a letter agreement wit
Wastewater Authority to allow the City of Carlsbad to provide services to acquire 1
of the Encina Member Agencies.
4. That the transfer of the City of Carlsbad's share of funds for the comp
to a fund for the purpose of acquiring the property be approved.
5. This resolution shall be forwarded to the EWA immediately upon its e
PASSED, APPROVED AND ADOPTED at a regular meeting of the
Council held on the 20th day of JUNE , 1995, by the following vote to 1
AYES: Council Members Lewis, Nygaard, Kulchin, Finnj
NOES: None
ABSENT: N
APEST:
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(SEAL)