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HomeMy WebLinkAbout1996-12-17; City Council; 13967; APPROVAL OF AMENDMENTS TO THE ENCINCA WASTEWATER AUTHORITY REVISED BASIC AGREEMENTk 4 APPROVAL OF AMENDMENTS TO THE ENCINA WASTEWATER AUTHORITY MTG. 12/17/96 RECOMMENDED ACTION: Staff recommends adoption of Resolution No. 9b-Y3? amending the Revis Agreement (RBA) between the Encina Wastewater Authority and the City of Carlsbac the increased outfall capacity, the change in name of Encinitas Sanitary District to 1 Encinitas, and to include a revised service area map. ITEM EXPLANATION: On October 23, 1996 the Encina Wastewater Authority Board of Directors recommc the parties to the Revised Basic Agreement for Ownership, Operation and Mainter Joint Sewage System (RBA) consider amending that agreement. The recommended amendments address these three issues: 1) an increased Enci Outfall capacity; 2) changing the name of the Encinitas Sanitary District to its succes: the City of Encinitas; and 3) a revised Service Area Map deleting a portion of the Water District area. A copy of the staff report to the EWA Board detailing the amendments is attached as Exhibit #2. FISCAL IMPACT: There are no fiscal impacts associated with this item. 1. 2. EWA Staff Report. 3. Amended Revised Basic Agreement. Resolution No. 96- '?3? . a u < ti & < P g -. 1 2 3 4 5 6 7 e e RESOLUTION NO. 9 6 - 4 3 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, FOR APPROVAL OF THE BASIC AGREEMENT AMENDMENTS ENCINA WASTEWATER AUTHORITY~S (EWA) REVISED WHEREAS, in the past year EWA has completed an intensive testing program of the outfall 1 and that testing program certifies a new capacity of 75 million gallons per day during high tide conditi that the Revised Basic Agreement (RBA) should be amended to reflect the new capacity; and 8 9 10 11 l2 l3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Encinitas Sanitary District was dissolved in 1995 and the City of Encinitas I over as the Successor in interest, and that the Revised Basic Agreement (RBA) needs to be amended ti the change in the name of the Encinitas Sanitary District to the City of Encinitas; and WHEREAS, the Vallecitos Water District (VWD) has notifed EWA that the VWD service a easterly of the 1-15 boundaq has changed, and that the Revised Basic Agreement (RBA) needs to be I to include a revised Service Area Map; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Carlsbad, Cali follows: 1. That the above recitations are true and correct. 2. That the amendments to the Revised Basic Agreement as set forth above, are incorpoiatl by reference, are accepted and the Mayor be authorized to sign the Encina Wastewater Authority Re7 Agreement (RBA) for ownership, operation and maintenance of a joint sewer system. I// Ill Ill Ill Ill //I I 1 2 3 4 5 6 7 8 9 10 11 12 l3 I* 15 16 17 18 19 20 21 22 23 24 25 26 e 0 PASSED, APPROVED AND ADOPTED at a meeting of the City Council of the Cit: Carlsbad, California held on the 17th ,-Jay of December , 1996, by tl following vote, to wit. AYES. Council Members Lewis, Finnila, Nygaard, Kulchin E NOES: None ABSENT: None h/- /qf ,/d 'L //,<<j74/,#Jg L ,// Y CLAmkk'LE S, YO ATTEST: L*e4mQm-, Z, City Clerk (SEAL) I 27 28 If 0 0 ENCINA WASTEWATER AUTHORITY STAFF REPORT The Revised Basic Agreement for Ownership, Operation and Maintenance of a Joint Sewerage System (RBA) needs to be revised to reflect the increased capacity, as well as a revised peaking factor. It has been over two years since the RBA was revised and there is a need to update several sections to reflect other changes that have occurred. RBA Section 9.1 Unit I and Unit J Capacity Capacity Rights shown in the RBA are expressed in terms of average daily flow. Trespassing and payment for trespassing beyond the agreed to limits is determined based on a three month average of the daily flow. Therefore the outfall capacity must be expressed in terms of average daily flow. Section 9 (Capacity Rights) of the RBA needs to be updated to reflect the increased outfall capacity. First of all the Unit J capacity rights table in section 9.1 needs updating. capacity rights table. Finally Section 9.2e License Payment needs to be updated to reflect current costs and the changed outfall capacity. The existing RBA was based on a Unit J average daily flow capacity of 38.0 MGD. This assumed a peaking factor of 2.13, therefore the peak instantaneous influent flow rating considering the interim flow equalization facilities was 8 1 MGD (38 times 2.13 = 80.94). The 1996 outfall hydraulic testing program determined the peak instantaneous flow rating of the, outfall considering the flow equalization facilities, to be 105 MGD. We are recommending the RBA be modified by keeping the outfall average daily flow capacity at 38 MGD (same as the existing RBA) and increase the peaking factor to 2.76 (38 times 2.76 = 105) to reflect the increased capacity. The recommended peaking factor is less than the 3.0 experienced in 1995. However, it is assumed that a lower peak factor will be realized with build out in the service area and with inflow and infiltration control efforts by Secondly, section 92g Reserve Capacity needs to reflect the capacity shown in the the member agencies. License Payments Section 9.2e lists the payment penalties for agencies whose flows trespass into the reserve capacity pool. The section needs to be updated to reflect the current cost allocation information. Also we are suggesting an Exhibit be attached that will formally depict the methodology used in determining the payment amounts. See the Exhibit B attached to this letter. EXHIBIT 2 e 0 The following depicts the revisions. e. License Payments. When any member agency’s flow exceeds 100% of its capacity allocation for the treatment of solids, and/or treatment and/or disposal of liquids, for any continuous three-month period, such member agency shall pay for the use of such capacity from the reserve capacity pool in accordance with the schedule of values, as adjusted each July 1 (commencing in July 1996 49.94) by updating the facility spreadsheet to include any additional and changed capital project costs, and to reflect the current ENR1;A construction cost index as follows: (1) Any portion of reserve up to 50% of Total Reserve Capacity: $93,200 $%4;368 per MGD of Unit I liquid capacity per year $155,800 $44,000 $-X+€W per MGD of Unit J capacity per year (2) The use of reserve amounts over 50% of Total Reserve Capacity shall be a violation of this section. In addition to any other remedy provided herein, or available to EWA or the member agencies, an agency shall pay for such use: $153,300 $440+3W $259,700 $2%&500 $73,300 w per MGD of Unit J capacity per year Payments to member agencies with unused reserve shall be made annually. Payments from member agencies shall be made quarterly to the EWA and held in a special account. Change in Name The Encinitas Sanitary District was dissolved in 1995 and the City of Encinitas has taken over as the successor in interest. See attached letter from the City of Encinitas dated October 10, 1995. The first paragraph and the signature block are the only place that the RBA needs to be revised to reflect this change as follows: First Paragraph: “THIS AGREEMENT (hereinafter referred to as the Revised Basic Agreement), is made and entered into this 17th day of December, 1990, by and among the CITY OF VISTA, a general law city (hereinafter VISTA), the CITY OF CARLSBAD, a general law city (hereinafter CARLSBAD), the BUENA SANITATION DISTRICT, a County Sanitation District (hereinafter BUENA), the VALLECITOS WATER DISTRICT, a County Water District (hereafter VALLECITOS), the LEUCADIA COUNTY WATER DISTRICT, a County Water District (hereinafter called LEUCADIA), and the -~ct, ;; E- Citv of Encinitas, a $XE$%Q per MGD of Unit I solids capacity per year per MGD of Unit I liquid capacity per year per MGD of Unit I solids capacity per year .. .. )I general law citv (hereinafier ENC‘LNITAS.” e 0 CITY OF ECINITAS BY BY Mavor l+esde& Attest: City Clerk Service Area Map The Vallecitos Water District (VWD) has notified EWA that the VWD service area easterly of the 1-1 5 boundary has changed. See attached letter from VWD dated July 3 1 , 1996. The RBA requires written notification per the following excerpts: “3.2 Revisions to the Service Area . Areas lying outside the Exhibit A service areas of agency. Notification of such annexations must be made in writing to the Joint Advisory Committee so that Exhibit A can be modified as appropriate. Member agencies can also request alternation of their Exhibit A service areas, such modifications must be approved in writing by all member agencies, as evidenced by receipt of resolutions from the governing bodies of all member agencies. Member agencies whose Exhibit A service areas are enlarged shall be responsible for providing adequate capacity.” A revised Exhibit attached as Exhibit “A” the member agencies may be served, provided such areas are annexed by a member a @ EXHIBIT A ‘-.-:I f ?i -t 0 - 4 iI < LL e 0 !ixmNTl CENSE PAYMENTS SCREDULE OF VALW !I) Anvaort ion of reserve UD t o 50% of Total Reseme Cauacity; The license Davment s hall be 8% o f the current reulace ment value of the facilities. without mnts deducted, awed each j ulv 1 (commencinn in Juiv 19961 bv updat ine the a allocation sDrea&het to include any additional and changed cadat DM) iect costs. and & reflect the current =A construct io- index. Un it I and J license Dawn ents shu based OB a no w mte of 38 MGD. Ua it I liauid license Davments shall be ~CODOH ioned bw 9n the uew of the Ffo w value of the total regiace ment value. ULU ‘t I solids Ii- Pavme n ts shall be wwrt~o ‘n ed b wd o n the Dementage - of the sum of the BOD and Ss renlacement Yb as ComDared to the total wement value, 1996 - Exam& e “nit I - Total RDiaceme nt value of Unit i (treatment faciiities) without mnt deducted. J& 1996 at ENRL A of 6522= $118.310.00. Flow value = $44. 272.000. BOD value = mvme nt of $249.000 Der MGD ~$118.310.000 t imes .08 divided bv 38 MGDI, &lit between liaujd and soli& Dayme nts: ion = $249.000 times 44.272.000/118.310.000 - $93. 204 = s249.000 t imes (43.882.000 + 30.157.000)/ 118.310.OOQ = St55.80Q - @d ~ort ion Vnit J tota I redaceme nt value = $20,881,000, 0.881.000 t imes .os divided bv 38 MGD = $44.0 00 I Julv I. 1996 1’ iceme Dayme nts $93.200 wr MGD o f Unit I liauid cauacitv De r Year per MGD o f Unit I solids cmcitv B r year per MGD of Unit .I caDac itv De r vear It) The use of reserve mou nts over 50% of Total Reserve Cauacitv; erne Dame nts shall be increased bv 2t3 % JUIY I. 1996 license Dayme nQ s153.300 $259.700 $73,300 -per MGD of Unit I liauid caDacitv Der year wr MGD of Unit I so lids cam citv Der year Der hKD of Unit J caaacitv Der vear 0 0 AMENDMENTS TO THE REVISED BASIC AGREEMENT FOR OWNERSHIP, OPERATION AND MAINTENANCE OF A JOINT SEWAGE SYSTEM , 1996 Ref: 1 ’ e 0 TABLE OF CONTENTS 1 RECITAlLS ...................................................................................................... 1 Section 1 DEFINITIONS ...................................................................... 2 1.2 Joint System ......................................................................... 2 1.3 Member Agencies .................................................................. 2 1.4 Operator/Administrator ............................................................ 2 1.5 Biosolids .............................................................................. 2 Section 2 JOINT PARTICIPATION ........................................................ 2 Section 3 AREA TO BE SERVED BY THE JOINT SYSTEM ....................... 2 3.2 Revisions to the Service Area .................................................... 2 3.3 Prohibition on Discharges from Outside the Exhibit A Service Area ..... 3 Section 4 ENLARGEMENT OF THE JOINT SYSTEM ............................... 3 Section 5 PROTECTION OF THE JOINT SYSTEM/SOURCE CONTROL ...... 3 5.1 Protection of the Joint System .................................................... 3 5.2 Prohibitions .......................................................................... 3 Section 6 CAPACITY AND USE OF CAPACITY (CAPACITY INFRINGEMENT) ................................................................. 3 Section 7 CAPACITY MONITORING ..................................................... 4 Section 8 ACQUISITION/SALE OF EXCESS CAPACITY ........................... 4 Section 9 CAPACITY FUGHTS IN UNITS ............................................... 4 9.2 Unit I Capacity Infringement ..................................................... 4 a . Flow Calculation4 ................................................................. 4 b . Monitoring of Capacity Demand ............................................ 5 c . Excess Use a Trespass ......................................................... 6 d . Indemnity and Hold Harmless ............................................... 6 e . License Payments .............. :: ................................................ 6 f . Restrictions on Use Over 40% of Reserve ................................. 6 g . Reserve Capacity ............................................................... 6 h . Sole Method of Allocation .................................................... 6 Section 10 CAPACITY RIGHTS FOR RECLAMATION ...................... 7 10.1 Future Reclamation ................................................................. 7 10.2 Existing Reclamation ............................................................... 7 Section 11 JOINT ADVISORY COMMITTEE ................................... 7 11.1 Powers ................................................................................ 7 11.2 Representation on JAC ........................................................... 8 11.3 Officers of JAC .................................................................... 8 11.4 Meetings of the JAC .............................................................. 8 11.5 Rules ................................................................................. 8 11.6 Payment for Attendance .......................................................... 8 11.7 Assistance from the Operator/Administrator .................................. 9 Section 12 OPERATOR/ADMINISTRATOR ..................................... 9 1.1 Joint Advisory Committee (JAC) ................................................ 2 3.1 Existing Service Area .............................................................. 2 9.1 Unit I and Unit J Capacity ........................................................ 4 .. e 0 12.1 General Duties ...................................................................... 9 12.2 Designation and Specific Powers ................................................ 9 Section 13 BUDGETING AND ACCOUNTING ................................ 9 Section 14 ASSISTANCE TO OPERATOWADMINISTRATOR ........... 11 Section 15 RIGHTS OF WAY AND LAND ACQUISITIONS ............... 11 Section 16 PAYMENT OF OPERATION AND MAINTENANCE EXPENSES ............................................................... 12 16.1 Allocation of Expenses ........................................................... 12 16.2 Payment Schedule ................................................................. 12 16.3 Revenue from By-products ...................................................... 12 Section 17 PAYMENT OF CAPITAL EXPENSES ............................ 12 17.1 Allocation of Expenses ......................................................... 12 17.2 Payment Schedule ................................................................. 12 Section 18 SETTLEMENT OF DISPUTE OR CONTROVERSY ........... 13 18.1 Right to Arbitration ............................................................... 13 13.1 Annual Budgets ..................................................................... 9 18.2 Right of Observation ............................................................ 13 18.3 Right to Expert Arbitration ...................................................... 13 Section 19 APPORTIONMENT OF LIABILITY ............................... 14 Section 20 NOTICES .................................................................. 14 Section 21 SEVERABILITY ......................................................... 14 Section 22 MODIFICATION OF AGREEMENT ............................... 14 Section 23 SUCCESSION ............................................................ 14 Section 24 APPROVAL .............................................................. 14 J. e REVISED BASIC AGREEMENT FOR OWNERSHIP, OPERATION AND MAINTENANCE OF A JOINT SEWAGE SYSTEM AMENDMENTS , 1996 1 THIS AGREEMENT (hereinafter referred to as the Revised Basic Agreement), is made entered into this 17th day of December, 1990, by and among the CITY OF VISTA, a general law (hereafter VISTA), the CITY OF CARLSBAD, a general law city (hereafter CARLSBAD), BUENA SANITATION DISTRICT, a County Sanitation District (hereafter BUENA), VALLECITOS WATER DISTRICT, a County Water District (hereafter VALLECITOS), LEUCADIA COUNTY WATER DISTRICT, a County Water District (hereafter LEUCADIA), the City-of Encinitas. a general law city (hereafter ENCINITAS). !clxxuu WHEREAS , the parties hereto are responsible for providing sewage collection, transmis: treatment and disposal services in their respective service areas and are authorized to contract other parties for the provision of such services: and WHEREAS, on July 13, 1961, VISTA and CARLSBAD entered into a Basic Agree] pursuant to Chapter 5 of Division 7 of Title 1 of the California Government Code to acquire, cons and operate a Joint Sewer System; and WHEREAS, the Basic Agreement provided that other municipal corporations and pi districts or agencies may become parties to the Basic Agreement, thereby becoming members o joint powers authority; and WHEREAS, on January 6, 1964, BUENA became a member of the joint powers authority acquired certain interests and capacity rights in the Joint System; and WHEREAS, on March 22, 1965, VALLECITOS (then San Marcos) became a member o joint powers authority and acquired certain interests and capacity rights in the Joint System; and WHEREAS, on August 17, 1971, LEUCADIA and ENCINITAS (then Encinitas San District)- became members of the joint powers authority and acquired certain interests and cap rights in the Joint System; and WHEREAS, it is the desire of the parties hereto to (a) continue functioning through a powers authority and (b) modify and condense the enabling legal documents for the joint PC authority by entering into a Revised Basic Agreement pursuant to Article 1, Chapter 5, Divisic Title 1 of California Government Code relatins to the joint exercise of powers, for the purpos planning, designing, owning, operating. and maintaining a joint sewer system and concurre establishing, by separate agreement, the Encina Wastewater Authority. NOW THEREFORE, THE PARTIES HERETO COVENANT WITH EACH OTHEI FOLLOWS : -1- e e Section 1 DEFINITIONS For the purposes of this agreement the following terms shall have the meanings indicated: 1.1 Joint Ad visorv Comm ittee ( JAC). A committee composed of representatives of member agencies that advises both the member agencies and the Operator/Administrator on is relating to the Joint System. 1.2 Joint System. The Encina Water Pollution Control Facility (Unit I), and the Encina 01 Outfall (Unit J) including all related land, rights of way, and appurtenances. 1.3 Member Agencies . The six members of the Encina Wastewater Authority: V Carlsbad, Buena, Vallecitos, Leucadia, and Encinitas. 1.4 Ope rator/Administrator. The public agency designated by the member agencies as bl responsible for operating, maintaining, and administering the Encina Joint System. Since Augw 1988, the OperatoriAdministrator has been the Encina Wastewater Authority. 1.5 Biosolids. Primarily organic solid product, produced by the wastewater treatr processes, that can be beneficially recycled. Section 2 JOINT PARTICIPATION The member agencies shall participate jointly in the planning, design, acquisition, construct ownership, operation, maintenance and use of the Joint System (including any future expans thereof), and shall pay for such activities as hereinafter specified. ' Section 3 3.1Existing Service Area. The area to be served by the Joint System is shown on Exhibi which is attached hereto afid made a part of this Revikd Basic Agreement by reference. Areas 1: outside a member agency's legal boundary but inside that member agency's Exhibit A service area be served by the member agency, providing the member agency provides assurance in the form legally binding agreement that these discharges will meet all applicable rules and regulations. wastewater or biosolids received from outside a member agency's legal boundary pursuant to I agreement shall be regarded as the wastewater or biosolids of the member agency for the purposc AREA TO BE SERVED BY THE JOINT SYSTEM billing, capacity, and source control. 3.2 Revisions to the Service Area. Areas lying outside the Exhibit A service areas of member agencies may be served, provided such areas are annexed by a inember agency. Notifica of such annexations must be made in writing to the Joint Advisory Committee so that Exhibit A cai modified as appropriate. Member agencies can also request alteration of their Exhibit A service ar such modifications must be approved in writin? by all member agencies, as evidenced by receip resolutions from the governing bodies of all member agencies. Member agencies whose Exhib service areas are enlarged shall be responsible for providing adequate capacity. -2- 0 0 rea. Each men 3.3 Promion on DischarFes from 0 utside the Exhibit A Service A agency agrees that it will neither permit nor knowingly countenance the use of the Joint Sysi directly or indirectly, for the disposal of wastewater or biosolids originating outside of its 1 boundary except in the above manner, extent and conditions. Section 4 Any member agency having first obtained the consent of Carlsbad and Vista, may at its cost and expense enlarge any portion of Unit I or J of the Joint System in which it is the owne capacity rights and any increased capacity in such unit or portion resulting from such enlargement ! belong to the member agency paying the cost and expense thereof. No member agency ! unreasonably withhold consent to such enlargement. Any such enlargement shall be constructe accordance with plans and specifications approved by Carlsbad and Vista. ENLARGEMENT OF THE JOINT SYSTEM Section 5 5.1 Protection of the Joint Svstem. The Joint System shall not be used by any member agt for any purpose other than the conveyance, treatment, reuse, or disposal of wastewater and its products. Wastewater shall be construed to mean domestic sewage and trade wastewaters. E member agency shall adopt and enforce ordinances, resolutions, rules and regulations, concerning type and condition of wastewater permitted to be discharged into the sewers under its control and z prohibit the discharge of any wastewater which would be detrimental to the Joint System, or to the of by-products generated by the Joint System. Such ordinances, resolutions. rules and regulations 5 reflect the applicable federal and state statutes and regulations and shall be consistent with Operator/Administrator's industrial pretreatment regulations. PROTECTION OF THE JOINT SYSTEM/SOURCE CONTROL 5.2 Prohibitions. No member agency shall allow,excessive infiltration of any surface or st waters to be discharged directly or indirectly into the Joint System. No member agency shall a cooling water or other unpolluted industrial wastewater to be discharged directly or indirectly intc Joint System without the consent of all other member agencies. No member agency shall authori discharge from any groundwater cleanup site unless the discharge is authorized in advance by Operator/Administrator . Section 6 CAPACITY AND USE OF CAPACITY (CAPACITY INFRINGEMEN Each member agency shall own and enjoy a perpetual right to use its Joint System capacit the proportions set forth immediately below herein. No member agency shall in any way gI encumber, limit or restrict its interest in any part of the Joint System for any purpose other than treatment and disposal or reuse of wastewater and the management of wastewater treatr byproducts, or use the Joint System or any part thereof to a greater percentage than its capacity rij except as set forth in Section 9 herein. without the prior written consent of the other member agenc provided that no such excessive use without written consent shall be construed as a waiver of cap; rights by any member agency. 7 -3- 0 0 Section 7 CAPACITY MONITORING Each member agency shall participate in a joint flow metering system, operated administered by the Operator/Administrator, and facilitate such measurements of flow into the 3 System as needed for billing purposes and to verify that each agency is within its capacity rights. ' metering system shall be maintained according to a separate agreement executed by Operator/Administrator and the member agencies. Section 8 In the event that any member agency hereafter requires additional capacity in the Joint Sy! and capacity is available from another member agency, the capacity may be licensed, lease( purchased as necessary. Such lease or purchase shall be on terms as are hereafter agreed upon bj member agencies involved. In the event an inter-agency capacity agreement is adopted, the : Advisory Committee shall be notified in writing. Licensing, lease or purchase shall be subject tc terms and conditions established in Section 9 herein. ACQUISITION/SALE OF EXCESS CAPACITY Section 9 9.1Unit I and Unit J Cau - acity. Capacity rights shall be as follows: CAPACITY RIGHTS IN UNITS Unit I Unit J Liquid Solids Disposal MGD -- % MGD -- % MGD -- 7' 0 VISTA: 8.05 22.36 8.05 21.18 8.05 21.18 9.24 24.32 9.24 24.32 3.51 9.24 3.51 9.24 CARLSBAD: 9.24 25.67 BUENA: 2.26 6.28 VALLECITOS: 7.54 20.94 7.54 19.84 7.54 19.84 LEUCADIA : 7.11 19.75 7.86 20.68 7.86 20.68 ENCINITAS: 1.80 5.00 1.80 4.74 1.80 4.74 TOTAL 36.0 100.00 38.0 100.00 38.0 100.00 The total disposal capacity of Unit J shall be 38.0 MGD average daily flow. This capacity r assumes that the wet weather peaking factor on the flows to Unit J shall continue to be less than 1 and all the parties hereto agree to make good faith efforts to ensure that the wet weather peaking f on the flows to Unit J remains below 2.76. ' 9.2Unit I Capac ity InfrinEement, The member agencies agree to make available up to 5 pe of their respective shares of total capacities, as set forth in Section 9.1 through a reserve capacity in accordance with the following terms and conditions: a. Flow Calcu lation. For the purposes of calculating payments due for licensing undei section, flows shall be based on measured (ADS) flows, to the maximum extent feasible. 5 loading flows shall be based on the total flow originating within each member agency. Voting ri -4- 0 e as described in Section 11 shall be in no way affected by temporary use of reserve capacity under section. Total Reserve Capacity is the total capacity shown in paragraph (g), below. *. b. Monitor= of Car, -acity Demand. Each agency shall provide monthly reports to E regarding future capacity committed, based upon its acceptance of applications for or issuance ol building permits, letters of availability, certificates or other entitlements for use which represent sewer capacity is available to the applicant or project, or which enforceable or practically cob agency to provide future sewer service. Reports shall be submitted in such form as the Board of E may require. Before the measured and committed flows reach 75% of Encina's total capacity Sections 9. l), the EWA shall initiate a program to ensure adequate capacity to meet projected need c. .-aTresDass. Any use of capacity in excess of 95% of their respective shai Encina's total capacity (per Section 9.1) plus 50% of the Total Reserve Capacity, or othenvi5 violation of this section, shall be considered a trespass. At the request of any member agency, E shall, and is hereby authorized to specifically enforce the terms of this section (Section 9.3) agaii member agency or agencies on behalf of the remaining member agencies, including thri commencement of a proceeding at law or equity. The parties agree that specific enforcement proper remedy in that payment of damages is not an adequate remedy for the potential losses to member agency resulting from the loss of capacity. For example, replacement of capacity ma impractical and the consequences for the economic development of the members are not reac subject to quantification. Each member agency hereby consents to the commencement of such a1 or actions by EWA, and waives any right it may have to further approval of such actions unde joint powers agreement creating and establishing EWA. In addition to any injunctive relief, EWA prevailing party shall be entitled to attorney's fees and costs. seek consequential damages on behalf of the remaining member agencies. In any such action d. Indemnity and Hold Harmless. In addition to payment of the amount specified herein, agency agrees to indemnify, defend and Hold harmless the EWA and the other member agencie: any claim, demand, cost, penalty, fine or damage (including reasonable attorney's fees and cos investigation), arising out of its violation of this section, whether resulting from the agency's acth passive, negligent or intentional act or failure to act to prevent a violation, and notwithstandins active or passive negligence of those member agenciec which are in compliance with the provisioi this section. e. Li 'cense Payments When any member agency's flows exceed 100% of its cap allocation for the treatment of solids, and/or treatment and/or disposal of liquids, for any contin three-month period, such member agency shall pay for the use of such capacity from the re! capacity pool in accord with the schedule of values, as adjusted each July 1 (commencing in July 1 by updating the facility spreadsheet to include any additional and changed capital project costs, ar reflect the current ENRLA construction cost index, as follows (see Exhibit C): (1) Any portion of reserve up to 50% of Total Reserve Capacity: $93,200 per MGD of Unit I liquid capacity per year $155,800 per MGD of Unit I solids capacity per year $44,000 per MGD of Unit J capacity per year -5- 0 0 (2) The use of reserve amounts over 50% of Total Reserve Capacity shall be a violation ol In addition to any other remedy provided herein, or available to EWA or the me1 section. agencies, an agency shall pay for such use: $153,300 $259,700 $73,300 per MGD of Unit I liquid capacity per year per MGD of Unit I solids capacity per year per MGD of Unit J capacity per year Payments to member agencies with unused reserve shall be made annually. Payments from mer agencies shall be made quarterly to the EWA and held in a special account. f. Restrictions o n Use 0 ver 40% of Reserve. If at any time any agency shall enforceable or practically committed to provide future sewer service which, when added to its existing actual flows, equals 95% of its allocated capacity (per Section 9.1) plus 40% of the r Reserve Capacity, such agency shall: 1. Immediately halt the acceptance or issuance of any building permits, letters of availab certificates or other entitlements for use which represent that sewer capacity is the agency to prc future sewer service. 2. Immediately inform EWA, in writing, that it has reached this threshold, of the actions il taken to implement (e) (1) above, and of its intention to present a plan to EWA, within 30 days, capacity management to prevent the agency from exceeding use of 50% of the Total Reserve Capac g. Reserve Capac ity. Reserve capacity shall be as follows: I unit I Unit J Liquid Solids Disposal MGD -- % MGD -- % MGD -- % VISTA: .40 22.36 .40 21.:18 .40 21.18 CARLSBAD: .46 25.67 .46 24.32 -46 24.32 BUENA: .I1 6.28 .18 9.24 .18 9.24 VALLECITOS : .3 8 20.94 .38 19.84 .38 19.84 LEUCADIA : .36 19.75 .39 20.68 .39 20.68 ENCINITAS : .09 5 .OO .09 4.74 .09 4.74 TOTAL RESERVE 1.8 100.00 1.9 100.00 1.9 100.00 h. Sole Method of Allocation. No agency shall provide capacity to any other member agc except pursuant to this section without the unanimous consent of the member agencies; provided an agency may agree to provide additional capacity on a temporary basis to an agency which has the maximum reserve capacity authorized by this section if: (1) such arrangement provides -6- 0 0 payments at rates not less that the maximum reserve capaGity rate per paragraph (e)@\ GQQySi (2) the capacity so provided does not reduce the Total Reserve Capacity available. Section 10 10.1Futut-e Reclamation . Any member agency, at its own expense, may, and shall havl right to, reclaim water from any wastewater in the Joint System which emanates within the jurisdi of the respective member agency. And, subject to the following limitations, each member agency have the right to install facilities for the reclamation of water from wastewater. Any pro1 reclamation shall require the approval of all the member agencies in the event that the pro1 reclamation facility is designed and/or constructed such that (i) any solids or non-treated effluent any such facility may be discharged into Unit I of the Joint System and/or (ii) any reclaimed water be discharged into Unit J of the Joint System. Such approval shall not be withheld unless the UI the proposed reclamation facility would adversely affect one or more of the member agencies ant reclaimer cannot reasonably mitigate the adverse impact. Nothing in this section shall be construc as to require approval by the member agencies as to the geographic location of a reclamation fa( constructed solely within the boundaries of any member agency. CAPACITY RIGHTS FOR RECLAMATION 10.2 ExistinE Reclamat ion. Section 10.1 above pertains to all future reclamation facilil Currently constructed facilities may be operated to their capacity without further action by own The current reclamation facilities and capacities are as follows: RECLAMATION ENTITY FACILITY CAPACITY CARLSBAD Calavera Hills 1.20 MGD LEUC ADIA Gafnkr 0.75 MGD VALLECITOS Meadow lark 2.00 MGD BUENA Shadowridge 1.16 MGD Section 11 JOINT ADVISORY COMMIT.TEE The member agencies have created a Joint Advisory Committee (JAC) to advise the me agencies and the Operator/ Administrator. JAC shall continue in this advisory role. 11.1Powers. Recommendations of JAC shall be advisory only. The JAC shall havi following responsibilities : 11.1.1 To review the operation and maintenance of the Joint System, including the thereof, and make reports and recommendations to the governing bodies of the member agencies; 11.1.2 To review and make recommendations regarding proposed expansion, enlargemer modifications of the Joint System to the governing bodies of the member agencies; and -7- 0 0 11.1.3 To review and make recommendations regarding contracts, budget matters, regulatic policies, permits and other documents and issues as appropriate to the Operator/Administrator. E report and recommendation of the JAC permitted by this Section shall be considered as having t made by all the member agencies when made to the Operator/ Administrator and made in accords with the voting rights and percentages set forth below in Section 11.4.4. 11.2 Remesentat ion on JAC. JAC shall be constituted by two appointed representatives f each member agency, with one alternate for each appointed representative. JAC representatives n but need not, be members OC the governing bodies of the member agencies. 11.3 Officers of JAC. JAC shall elect its own officers, which shall include a Chairn Vice-chairman, and Secretary. The Chairman and Vice-chairman shall be JAC representatives the Secretary may, but need not, be a JAC representative. 11.4 Meeting of the JAC. 11.4.1 Regular Meetings. The JAC shall provide for its regular meetii provided, however, it shall hold at least one regular meeting per month. The dates, hour, and.plac the regular meetings shall be established by JAC. 11.4.2 Ralph M. Brown Act. All meetings of the JAC, including, wid limitations, regular, adjourned regular, and special meetings, shall be called, noticed, held, 54950 of the California Government Code). conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Sec 11.4.3 Minutes. The JAC Secretary shall cause to be kept minutes 01 meetings of the JAC, and shall cause a copy of the minutes to be forwarded to each . representative. 11.4.4 Vote. The total vote of all members of the JAC shall equal 100 When voting on a matter involving the Treatment Plant (Unit I) or Unit J each JAC representati percentage vote shall equal one-half of the percentage of that unit's capacity owned by representative's agency. If only one of an agency's representatives is present, this representati percentage vote shall equal the total percentage of that unit' s capacity owned by the representati agency. If both representatives are absent, each alternate shall have a percentage vote equal to one- of the percentage capacity of the alternate's member agency; provided, however, at any JAC mee where any member agency is represented by only one alternate, the alternate shall have a percentag vote equal to the total percentage of the capacity of the agency he/she represents. 11.5 Rules. JAC shall adopt rules and regulations for the place, time and conduct of 1 meetings. 11.6 Payment fo r Attendance. The Operator/Administrator (or, if requested by the appoin member agency, that member agency as to its representatives) shall pay each representative alternate who attends a meeting by reason of the absence of a representative) an attendance fel -8- 0 0 twenty-five ($25.00) for each JAC meeting, provided that such payment does not exceed fifty dol ($50) per calendar month. Attendance fees shall be paid monthly. 11.7 Assistance from the ODerato r/Adm inistrato r The Operator/ Administrator shall pro supplies and clerical and secretarial help for JAC. The cost of such supplies and assistance shal considered part of the expense of operating and maintaining the Joint System. Section 12 OPERATORIADMINISTRTOR The Joint System shall be maintained and operated by any one of the parties hereto, 01 another Public Agency, which party or other public agency shall be known as the Open Administrator. 12.1General Duties. 12.1.1 Joint System. The Operator/ Administrator shall maintain and ope the Joint System, and shall preserve it in good repair and working order, all in accordance regulations. recognized sound engineering and accounting practices and local, state, and federal laws 12.1.2 Pump Stations. The OperatoriAdministrator also shall operate maintain, at the expense of the Cities of Vista and Carlsbad, the Agua Hedionda and Buena T Pump Stations (formerly Units B and C of the Joint System) within an annual budget prepared bq Operator/Administrator and approved by Vista and Carlsbad. 12.1.3 Other Facilities. The Operator/Administrator shall have the authoril operate and maintain other facilities outside the Joint System as recommended unanimously by and in accordance with Operator/AdminiStrator executed operation agreements, which may inc: budgeting respons ib ii ities . 12.2 Designation and Specific Powers Effective August 1, 1988, the member agencies crc a public agency known as the Encina Wasthater Authority (EWA) to serve as Operator/Administrator of the Encina Joint System. The EWA shall continue to serve as Operator/Administrator until such time as EWA is terminated by written consent of a majority o member agencies, evidenced by certified copies of resolutions by their governing bodies. organization, administration, rules, and specific powers of the EWA shall be as set forth in the Re\ Establishment Document establishing the EWA. Upon termination of the EWA and replacement another Operator/Administrator, employees of the EWA shall become the employees of the Operator/Administrator subject to existing employment contracts. seniority, retirement rights and other employee benefits or rights now enjoyed by those employees. Section 13 BUDGETING AND ACCOUNTING 13.1 Annual Budcets. Annually. the Operator/ Administrator shall prepare an opera maintenance, and administration budget (hereafter referred to as the 0 & M budget) and a ci -9- 0 0 improvement program budget (hereafter referred to as the capital budget.) prepared in accordance with generally accepted accounting principles. The budgets shal 13.1.1 Preparation of Estimated 0 & M Budget. No later than May 1 of year, the Operator/Administrator shall prepare an estimated budget of the (a) amount of mc required to operate, maintain and administer the Joint System during the ensuing fiscal year, an( the proportionate amount to be paid by each member agency. Such estimate shall be based on the operation, maintenance, and administration costs during the current fiscal year as such costs arc forth in the current approved budget for the Joint System. 13.1.2 Approval of Estimated 0 & M Budget. Each estimated 0 & M bL submission to the member agencies for approval. The Operator/ Administrator's estimated 0 d budget shall be deemed effective upon unanimous approval by the member agencies and upon receipt by the Operator/Administrator of certified copies of approving resolutions or minute 01 from the governing bodies of each of the member agencies. Until such time as formal approval been received from each member agency, the estimated 0 & M budget shall constitute mere proposed budget, subject to consideration or revisions. The 0 & M budget shall be consid separately from the capital budget and may be approved independently. In the event a proposed bu is not approved, the Operator/Administrator shall continue to operate using the 0 & M budget fig from the previous fiscal year. 13.1.3 Prepaid 0 & M Contributions. Each member agency shall prepa estimated portion of the budgeted operation, maintenance, and administration costs and shall pa actual portion of the costs as determined pursuant to Section 16 of this Revised Basic Agreeme Quarterly on July 1, October 1, January 1, and April 1, the Operator/Administrator shall bill member agencies and the member agencies shall deposit with the OperatorlAdministrator one fourt the annual cost of operation, maintenance; and administration €or the following quarter as descr herein. Provided, however, the last invoice for each fiscal year may be increased or decrease adjust the estimated amount payable based upon the estimated total expenses for the full year anc estimated total amount and strength of wastewater received from each member agency. In the e that at the end of any fiscal year the amount paid by atmember agency exceeds the amount that sh have been charged, the excess shall be credited to the member agency the following fiscal year case of an underpayment, the member agency shall be billed by the Operator/Administrator and pay for the deficiency within 15 days. Each member agency shall make quarterly contribi payments to the Operator/Administrator promptly at the time they become due. adopted by the Operator/ Administrator shall be forwarded to the JAC for consideration and 13.1.4 Actual 0 & M Contributions. The member agencies agree to contri from their treasuries the actual annual costs of the Joint System as divided among the member ager pursuant to Section 17 of this Revised Basic Agreement. Such costs shall include the actual costs 0 all materials and supplies used or purchased for the operation, maintenance. or administration ol Joint System, (2) all contracts let by the OperatoriAdministrator for the performance of budgeted M work, and (3) the salaries and wages of all Operator/ Administrator employees providing services, including vacations and sick leave benefits, workers ' compensation, social security retirement payments. and health insurance. Such costs shall be paid out of the funds deposited wit1 Operator/Administrator by the member agencies: provided however, the failure of any member ag - l0- 0 0 to pay the Operator/ Administrator shall not relieve the other member agencies of their obligatic pay their proportionate shares of operation, maintenance, and administration of the Joint System. 13.1.5 Preparation of Estimated Capital Budget. No later than May 1 of year, the Operator/Administrator shall prepare an estimated budget of the amount of money req for capital improvement projects during each of the next five fiscal years and over the next tv years. The estimated capital budget shall show the estimated amount to be paid by each me agency. Such estimate shall be based on existing and/or projected ownership as appropriate. 13.1.6 Approval of Estimated Capital Budget. Each estimated capital bi adopted by the Operator/ Administrator shall be forwarded to the JAC for consideration anc submittal to the member agencies for approval. The Operator/ Administrator's estimated ca budget shall be deemed effective upon unanimous approval by the member agencies and upor receipt by the Operator/Administrator of certified copies of approving resolutions or minute 01 from the governing bodies of each of the member agencies. Until such time as formal approva been received from each member agency, the estimated capital budget shall constitute mere proposed budget, subject to consideration or revisions. The capital budget shall be consic separately from the 0 & M budget and may be approved independently. 13.1.7 Prepaid Capital Contributions. Each member agency shall prepay its a portion of the capital costs except as noted in Section 18 of this Revised Basic Agreement. Qua1 on July 1, October 1, January 1, and April 1, the OperatoriAdministrator shall bill the me1 agencies and the member agencies shall deposit with the Operator/Administrator one fourth 0 actual estimated capital costs except as otherwise specified in Section 17. Any capital funds rema at the end of the fiscal year shall be retained and credited toward the member agencies for following fiscal year. Each member agency shall make quarterly contribution payments to Operator/Administrator promptly at the time they become due. 13.1.8 Actual Capital Contributions. The member agencies agree to contri their actual capital costs pursuant to Section 18 of this Revised Basic Agreement. include the actual costs of (1) all materials and supplies used or purchased for capital improveme the Joint System and (2) all contracts let by the OperatorlAdministrator for the performance of ci improvement projects. Provided however, the failure of any member agency to pay the Oper Administrator shall not relieve the other member agencies of their obligation to pay their proportic shares of the capital expenses of the Joint System. Such costs 13.1.9 Audit. Annually the Operator/ Administrator shall cause the prepar of an independent accountant audit of the financial statements. Section 14 ASSISTANCE TO OPEFUTOR/ADMINISTFUTOR When requested by the Operator/Administrator. the EWA shall provide assistance. and I recommendations to said Operator/Administrator relative to all services and duties it is to per under the terms of this Revised Basic Agreement. Section 15 RIGHTS OF WAY AND LAND ACQUISITIONS - 11 - 0 0 The Operator/Administrator and/or any of the member agencies may, as agreed upon in wr by all the member agencies, act on behalf of the member agencies in acquiring lands and ri5hts of necessary for the operation, maintenance, ownership, and use of the Joint System. Section 16 16.lAllocation of Expenses. All operation, maintenance and administration expenses for 1 I and J of the Joint System, hereafter referred to as 0 & M expenses, shall be paid by each me1 agency based on each member agency's percentage of ownership and usage in these units. Fo purpose of this section, the following definitions shall apply: "usage" shall mean the costs for pa chemicals, maintenance, and other sewage treatment, solids handling, and disposal processes w result from wastewater entering Unit I or Unit J; "ownership" shall mean the costs for insura administration expenses, laboratory expenses, plant operations, services and maintenance, and ( wastewater collection and treatment, solids handling and effluent disposal costs which are incu irrespective of the amount of wastewater which enters Unit I or Unit J. PAYMENT OF OPERATION AND MAINTENANCE EXPENSES 16.2Payment Schedule. Each member agency shall pay its proportionate share of operation, maintenance and administration expenses in accordance with Section 13.1 of this Re\ Basic Agreement. 16.3Revenue from By-Products. Any revenue received from the sale of by-products arisinl of the operation of the Joint System shall be apportioned to each member agency in the : proportion as their share of the 0 & M expenses for the Joint System in the year in which the rev is received. Section 17 17.1 Allocation o f Expenses. Unless otherwise specified herein, capital expenses shal allocated based on existing or projected Unit I or Unit J ownership as appropriate. Exceptions a1 follows: PAYMENT OF CAPITAL EXPENSES ' 17.1.1 Phase IV Expansion. Phase IV capacity and costs are alloc according to the methodology shown in Exhibit B, attached hereto and made part of this Revised 1 Agreement by reference. 17.1.2 Joint Flow Metering System. Each member agency is responsiblt the capital expenses of meters and monitors serving its respective service area. Capital expense5 the monitors serving the entire Exhibit A service area shall be paid on the basis of Unit J flow. 17.1.3 Additional Land/Right of Way Acquisition. All expenses shal allocated in accordance with the terms of a separate agreement to be adopted unanimously by member agencies. 17.2 Payment Schedule. Unless otherwise specified herein, capital expenses shall be pre on a quarterly basis. Exceptions are as follows: - 12- 0 e IN WITNESS WHEREOF, each party hereto has pursuant to resolution duly passed adopted by their respective governing bodies caused this Revised Basic Agreement to be execute( day and year first above written. CITY OF VISTA BY Mayor Attest: City Clerk Attest : LEUCADIA COUNTY WATER DISTRICT BY President VALLECITOS WATER DISTRICT BY President Resolution and Signature Sheets and/or are on file with Encina Wastewater Authori BUENA SANITATION DISTRICT BY Chairperson - 15 - 0 e CITY 011 ENCMTAS BY Mayor Attest: City Clerk Approved as to form: BY JAC Counsel f - 16- EXHIBIT A 0 1 -.d[ 8 c 0 2 - I is -I 0 01 Q' e 0 EXHIBIT B PHASE IV COST ALLOC ATION 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 mi recommended for revenue programs by the State Water Resources Control Board. b.The replacement value of the existiig Unit I and Unit J facilities at the mid-point of construction (proj ENRLA of 6465) shall be determined. In determining replacement value, grant funding shall be included except fc grant funding used to pay for the "oversized" portion of "oversized" items (i.e., items sized or undertaken for the ult site capacity, such as site grading and paving, piping, etc.). c.Do1lar ownership of the existing facilities shall be determined by multiplying existing ownership percentages the replacement values determined in step b. d.??le cost of the proposed Phase IV facilities at the midpoint of construction (projected ENRLA of 6465) sh estimated by the design engineer. e.The total value of the EWPCF following construction of Phase IV shall be estimated by adding the replact 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 1V shall be determined by multiF the revised Unit I liquid and solids and Unit J ownership's (determined in Exhibit A of the Thirty-Ninth Supplement) b 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 ownership's (determined in st from needed dollar ownership's following construction of Phase IV (determined in step f). Credits and buyins for ex facilities are automatically included in this calculation and need not be calculated separately; however, the dollar valu each are included below for background. Estimated Phase IV cost allocations in dollars and percent of total are as follows: Existing Projected Ownership Estimated Effective Ownership Following PhaSe iV Phase IV Cost Credit/Buying Agency Carlsbad 20,585,000 33,2 1 6,000 12,63 1,000 23.31 (745,000) Vista 22,739,000 28,93 8,000 6,199,000 11.44 ( 5,455,000) Leucadia 13,3 14,000 27,297,000 , 13,983,000 25.81 2,916,000 San Marcos 14,099,000 27,105,000 ' 13,006,000 24.01 2,091,000 Buena 4,436,000 11,020,500 6,584,500 12.15 2,023,000 Encinitas 4.694 .OOQ 6.470.500 1.776.500 3.28 G330.0001 Total 79,867,000 134,047,000 54,180,000 100.00 0 Final Phase IV cost allocations will be determined following completion of Phase IV construction and will use the actu costs spread according to the final engineer's estimate instead of the current engineer's estimate in steps d through g above ENRLA at mid-point of construction will be substituted for the projected value in step b. - 18- 7 *- e EXHIBIT C LICENSE PAYMENTS SCHEDULE OF VALUES (1) Any portion of reserve up to 50% of Total Reserve Capacity: The license payment shall be 8% of the current replacement value of the facilities, without gr deducted, adjusted each July 1 (commencing in July 1996) by updating the asset allocation spreads to include any additional and changed capital project costs, and to reflect the current EN1 construction cost index. Unit I and J license payments shall be based on a flow rate of 38 MGD. I liquid license payments shall be proporrimed based on the percentage of the Flow value of the replacement value. Unit I solids license payments shall be proportioned based on the percentage o sum of the BOD and SS replacement values, as compared to the total replacement value. 1996 - Example calculations: Unit I - Total replacement value of Unit I (treatment facilities) without grant deducted, July 199 ENRLA of 6522= $118,310.000, Flow value = $44,272,000, BOD value = $43,882,000 value = 30,157,000. Utilizing an interest rate of 8% yields a license payment of $249,0OC MGD ($118,310,000 times .08 divided by 38 MGD). Split between liquid and solids payments: liquid portion = $249,000 times ~,272,000/118,310,000 = $93,200 solid portion = $249,000 times (43,882,000 + 30,157,000)/118,310,0~ = $155,800 Unit J total replacement value = $20,881,000. ' $20,881,000 times .08 divided by 38 MGD = $44,000 July 1, 1996 license payments $93,200 $155,800 $44,000 per MGD of Unit I liquid capacity per year per MGD of Unit I solids capacity per year per MGD of Unit J capacity per year (2) The use of reserve amounts over 50% of Total Reserve Capacity: License payments shall be increased by 2/3. July 1, 1996 license payments $153,300 $259,700 $73,300 per MGD of Unit I liquid capacity per year per MGD of Unit I solids capacity per year per MGD of Unit J capacity per year - 19-