HomeMy WebLinkAbout1998-07-21; City Council; 14774; Encina Wastewater Authority Agreement- -
CITY OF CARLSBAD - AGENuA BILL 4’ -
fiB# jf7Y TITLE:
MTG. 07/2 1 I98 APPROVAL OF AMENDMENTS TO THE
ENCINA WASTEWATER AUTHORITY
DEPT. CMWD REVISED BASIC AGREEMENT (RBA)
RECOMMENDED ACTION:
CITY MGR.
Staff recommends adoption of Resolution No. 48 *dY 4 amending the Revised Basic
Agreement (RBA) between the Encina Wastewater Authority (EWA) and the City of Carlsbad to
reflect Billing in Arrears, as set forth in Exhibit A, to the member agencies.
ITEM EXPLANATION:
On March 25, 1998 the Encina Wastewater Authority Board of Directors recommended that the
parties to the Revised Basic Agreement for Ownership, Operation and Maintenance of a Joint
Sewage System (RBA) consider amending this agreement.
The proposed amendment addresses Billing in Arrears. The EWA Board unanimously
approved this item.
At the direction of the EWA Board, the EWA General Council has prepared the draft revisions
necessary to effect the proposed changes. The draft revisions have been reviewed by the staff
and have been determined to be consistent with Board intent.
The purpose of this change is to minimize the actual member agency funds in the possession of
EWA at any given time. The member agencies will be billed only for actual expenditures,
thereby limiting their cash flow and minimizing the funds needing to be reconciled at year-end.
FISCAL IMPACT:
If the Billing in Arrears item is amended into the Revised Basic Agreement, it would have a
positive fiscal impact on Carlsbad. Billing in Arrears allows Carlsbad to retain the reserves for
investment rather than remain on deposit with EWA.
EXHIBITS: Ilro 98 -~qrt,,
1. Resolutio I/ approving the Encina Wastewater Authority Revised Basic Agreement.
2. Exhibit A - Amendments to the Revised Basic Agreement for Ownership, Operation and
Maintenance of a Joint Sewage System (strikeout copy).
RESOLUTION NO. 98-244
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, FOR APPROVAL
OF THE ENCINA WASTEWATER AUTHORITY
(EWA) REVISED BASIC AGREEMENT (RBA)
WHEREAS, the Encina Wastewater Authority (EWA) has proposed revisions to the
Revised Basic Agreement (RBA); and
WHEREAS, those proposed revisions are for the purposes of Billing in Arrears;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Carlsbad, California, as follows;
1. That the above recitations are true and correct.
2. That the amendments to the Revised Basic Agreement (RBA) pertaining to
Billing in Arrears is approved.
PASSED, APPROVED AND ADOPTED at a meeting of the Carlsbad City Council
on the 21st day of, July 1998.
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin and Hall
NOES: None *
ATTEST:
C
AMENDMENTS TO THE
REVISED BASIC AGREEMENT
FOR OWNERSHIP, OPERATION
AND MAINTENANCE OF A JOINT SEWAGE SYSTEM
,199s
Ref: 3820
ATTACHMENT 3A
STRIKEOUT COPY
CORRECTIONS APPEAR ON PAGES 10, 11,12,13
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Tr\BLE OF COSTESTS
Page
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Section 1
1.1
1.2
1.3
1.4,
1.5
Section 2
Section 3
3.1
3.2
3.3
Section 4
Section 5
5.1
5.2
Section 6
Section 7
Section 8
Section 9
9.1
9.2
Section 10
10.1
10.2
Section 11
11.1
11.2
11.3
11.4
11.5
11.6
11.7
Section 12
DEFINITIONS ...................................................................... 2
Joint Advisory Committee (JAC) ................................................ 2
Joint System ......................................................................... 2
Member Agencies .................................................................. 2
Operator/Administrator ............................................................ 2
Biosolids.. ............................................................................ 2
JOINT PARTICIPATION ........................................................ 2
AREA TO BE SERVED BY THE JOINT SYSTEM ....................... 2
Existing Service Area .............................................................. 2
Revisions to the Service Area .................................................... 2
Prohibition on Discharges from Outside the Exhibit A Service Area ..... 3
ENLARGEMENT OF THE JOINT SYSTEM ............................... 3
PROTECTION OF THE JOINT SYSTEM/SOURCE CONTROL ...... 3
Protection of the Joint System .................................................... 3
Prohibitions .......................................................................... 3
CAPACITY AND USE OF CAPACITY (CAPACITY
INFRINGEMENT). ................................................................ 3
CAP.4CFI-Y MONITORING ..................................................... 4
ACQUISITION/SALE OF EXCESS CAPACITY ........................... 4
CAPACITY RIGHTS IN UNITS ............................................... 4
Unit I and Unit J Capacity. ....................................................... 4
Unit I Capacity Infringement. .................................................... 4
a. Flow Calculation.. .............................................................. 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
CAPACITY RIGHTS FOR RECLAMATION ...................... 7
Future Reclamation ................................................................. 7
Existing Reclamation ............................................................... 7
JOINT ADVISORY COMMITTEE ................................... 7
Powers ................................................................................ 7
Representation on JAC ........................................................... 8
Officers of JAC .................................................................... 8
Meetings of the JAC .............................................................. 8
Rules ................................................................................. 8
Payment for Attendance .......................................................... 8
Assistance from the Operator/Administrator .................................. 9
OPERATOR/ADMINISTRATOR ..................................... 9
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12.1
12.2
Section 13
13.1
Section 14
Section 15
Section 16
16.1
16.2
16.3
Section 17
17.1
17.2
Section 18
18.1
18.2
18.3
Section 19
Section 20
Section 21
Section 22
Section 23
Section 24
General Duties ..................................................................... 9
Designation and Specific Powers ................................................ 9
BUDGETING AND ACCOC’NTING ................................ 9
Annual Budgets ..................................................................... 9
ASSISTANCE TO OPERATOR/ADMINISTRATOR ........... 11
RIGHTS OF WAY AND LAND ACQUISITIONS.. ............. 11
PAYMENT OF OPERATION AND hIAfNTENANCE
EXPENSES . . ............................................................. 12
Allocation of Expenses ........................................................... 12
Payment Schedule ................................................................. 12
Revenue from By-Products ...................................................... 12
PAYMENT OF CAPITAL EXPENSES ............................ 12
Allocation of Expenses ......................................................... 12
Payment Schedule ................................................................. 12
SETTLEMENT OF DISPUTE OR CONTROVERSY ........... 13
Right to Arbitration ..................... . ......................................... 13
Right of Observation ............................................................ 13
Right to Expert Arbitration.. .................................................... 13
APPORTIONMENT OF LIABILITY ............................... 14
NOTICES .................................................................. 14
SEVERABILITY ......................................................... 14
MODIFICATION OF AGREEMENT.. ............................. 14
SUCCESSION ............................................................ 14
APPROVAL .............................................................. 14
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t. T REVISED BASIC XGREEJIEST
FOR 015%-ERSHIP, OPERATIOS .L\SD .\1.4LUTENASCE
OF A JOINT SE\k’.&GE SYSTElI
AMENDMENTS . 19%
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
(hereafter VISTA), the CITY OF CARLSBAD. a general law city (hereafter CARLSBAD), the
BUENA SANITATION DISTRICT, a County Sanitation District (hereafter BUENA), the
VALLECITOS WATER DISTRICT, a County Water District (hereafter VALLECITOS), the
LEUCADIA COUNTY WATER DISTRICT, a County Water District (hereafter LEUCAIXA), and
the City-of Encinitas, a general law city (hereafter ENCIMTAS).
WHEREAS, the parties hereto are responsible for providing sewage collection, transmission,
treatment and disposal services in their respective service areas and are authorized to contract with
other parties for the prcwision of such services: and
WHEREAS, on July 13, 1961, VISTA and CARLSBAD entered into a Basic Agreemen;
pursuant to Chapter 5 of Division 7 of Title 1 of the California Government Code to acquire, construct
and operate a Joint Sewer System; and
WHEREAS, the Basic Agreement provided that other municipal corporations and public
districts or agencies may become parties to the Basic Agreement. thereby becoming members of the
joint powers authority; and
WHEREAS, on January 6. 1964, BUENA became a member of the joint powers authority and
acquired certain interests and capacity rights in the Joint System: and
WHEREAS, on March 22, 1965, VALLECITOS (then San Marcos) became a member of the
joint powers authority and acquired certain interests and capacity rights in the Joint System; and
WHEREAS, on August 17. 1971, LEUCADIA and ENCINI’T’AS (then Encinitas Santary
District)-became members of the joint powers authority and acquired certain interests and capacity
rights in the Joint System; and
WHEREAS, it is the desire of the parties hereto to (a) continue functioning through -a joint
powers authority and (b) modify and condense the enabling legal documents for the joint powers
authority by entering into a Revised Basic Agreement pursuant to Article 1, Chapter 5, Division 7,
Title 1 of California Government Code relating to the joint exercise of powers, for the purposes of
planning, designing, owning, operating, and maintaining a joint sewer system and concurrently
establishing, by separate agreement, the Encina Wastewater Authority.
NGW THEREFORE, THE PARTIES HERETO COVENANT WITH EACH OTHER AS
FOLLOWS:
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Section 1 DEFINITIONS
For the purposes of this agreement the: following terms shall have the meanings indicated:
1.1 Laint Advisory Comee CJXj. A committee composed of representatives of the
member agencies that advises both the member agencies and the Operator/Administrator on issues
relating to the Joint System.
1.2 k&&km. The Encina Water Pollution Control Facility (Unit I), and the hcina Ocean
Outfall (Unit J) including all related land, rights of way, and appurtenances.
1.3 &&er Agencies . The six members of the Encina Wastewater Authority: Vista,
Carlsbad, Buena, Vallecitos, Leueadia, and Encinitas.
. . 1.4 (3wrator/Adml. The public agency designked by the member agencies as being
responsible for operating, maintaining, and administering the Encina Joint System. Since August 1,
1988. the Operator/Administrator has been the Encina Wastewater Authority.
1.5 m. Primarily organic solid product, produced by the wastewater treatment*
processes, that can be beneficially recycled.
Section 2 JOINT PARTICIPATIO?(
The member agencies shall participate jointly in the plan&g, design, acquisition, construction,
ownership, operation, maintenance and use of the Joint System (including any future expansions
thereof), and shall pay for such activities as hereinafter specified.
Section 3 AREA TO BE SERVED BY T&JOINT SYSTEM
3.1&&& Service Area. The area to be served by the Joint System is shown on Exhibit A,
which is attached hereto and made a part of this Revised Basic Agreement by reference. Areas lying
outside a member agency’s legal boundary but inside that member agency’s Exhibit A service area may
be served by the member agency, providing the member agency provides assurance in the form of a
legally binding agreement that these discharges will meet all applicable rules and regulations. Any
wastewater or biosolids received from outside a member agency’s legal boundary pursuant to such
agreement shall be regarded as the wastewater or biosolids of the member agency for the purposes of
billing, capacity, and source control.
3.2 Revisians to the Service Ara. Areas lying outside the Exhibit A service areas of the
member agencies may be served, provided such areas are annexed. by a member 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 alteration 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 shallbe responsible for providing adequate capacity.
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3.3 Prohibition on Dimes from Out side the &h& X Service .w. Each member agency agrees that it wiH neither permit nor knowingly countenance the use of the Joinr System.
directly or indirectly, for the disposal of wasrewater or biosolids originating outside of its legal
boundary except in the above manner. exfenf and conditions.
Section 4 ENLARGEMENT OF THE JOINT SYSTEM
Any member agency having first obtained the consent of Carlsbad and Vista, may at its sole
cost and expense enlarge any portion of Unit I or J of the Joint System in which it is the owner of
capacity rights and any increased capacity in such unit or portion resulting from such enlargement shall
belong to the member agency paying the cost and expense thereof. No member agency shall
unreasonably withhold consent to such enlargement. Any such enlargement shall be constructed in
accordance with plans and specifications approved by Carlsbad and Vista.
Section 5 PROTECTION OF THE JOINT SYSTEM/SOURCE CONTROL
5.1 Protectiaa of the Joint N. The Joint System shall not be used by any member agency
for any purpose other than the conveyance. treatment. reuse, or disposal of wastewater and its by-.
products. Wastewater shall be construed to mean domestic sewage and trade wastewaters. Each
member agency shall adopt and enforce ordinances, resolutions. rules and regulations, concerning the
type and condition of wastewater permitted to be discharged into the sewers under its control and shall
prohibit the discharge of any wastewater which would be detrimental to the Joint System, or to the use
of by-products generated by the Joint System. Such ordinances, resolutions, rules and regulations shall
reflect the applicable federal and state statutes and regulations and shall be consistent with the
Operator/Administrator’s industrial pretreatment regulations.
5.2 Prohibitions. No member agency shall allow-excessive infiltration of any surface or storm
waters to be discharged directly or indirectly into the Joint System. No member agency shall allow
cooiing water or other unpolluted industrial wastewater to be discharged directly or indirectly into the
Joint System without the consent of all other member agencies. No member agency shall authorize a
discharge from any groundwater cleanup site unless ihe discharge is authorized in advance by the
Operator/Administrator.
Section 6 CAPACITY AND USE OF CAPACITY (CAPA6ITY INFRINGEMENT)
Each member agency shall own and enjoy a perpetual right to use its Joint System capacity in
the proportions set forth immediately below herein. No member agency shall in any way grant,
encumber, limit or restrict its interest in any part of the Joint System for any purpose other than the
treatment and disposal or reuse of wastewater and the management of wastewater treatment
byproducts, or use the Joint System or any part thereof to a greater percentage than its capacity rights,
except as set forth in Section 9 herein. without the prior written consent of the other member agencies,
provided that no such excessive use without wrinen consent shall be construed as a waiver of capacity
rights by any member agency.
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Section 7 CAPACITY 3lONITORISG
Each member agency shall participate in a joint flow metering system, operated and
administered by the Operator/Administrator. and facilitate such measurements of flow into the Joint
System as needed for billing purposes and to verify that each agency is within its capacity rights. This
metering system shall be maintained according to a separate agreement executed by the
Operator/Administrator and the member agencies.
Section 8 ACQUISITION/SALE OF EXCESS CAPACITY
In the event that any member agency hereafter requires additional capacity in the Joint System
and capacity is available from another member agency, the capacity may be licensed, leased or
purchased as necessary. Such lease or purchase shall be on terms as are hereafter agreed upon by the
member agencies involved. In the event an inter-agency capacity agreement is adopted, the Joint
Advisory Committee shall be notified in writing. Licensing, lease or purchase shall be subject to the
terms and conditions established in Section 9 herein.
Section 9 CAPACITY RIGHTS N UNITS
9. lw J u Capacity rights shall be as follows:
unit I Unit J
Liquid Solids Disposal
% D-%. MGn--%
VISTA: 8.05 22.36 8.05 21.18 8.05 21.18
CARLSBAD: 9.24 25.67 9.24 24.32 9.24 24.32
BUENA: 2.26 6.28 3.51 4.24 3.51 9.24
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.d 100.00 38.0 100.00
The total disposal capacity of Unit J shall be 38.0 MGD average daily flow. This capacity rating
assumes that the wet weather peaking factor on the flows to Unit J shall continue to be less than 2.76,
and all the parties hereto agree to make good faith efforts to ensure that the wet weather peaking factor
on the flows to Unit J remains below 2.76.
9.2u I Cl- The member agencies agree to make available up to 5 percent
of their respective shares of total capacities, as set forth in Section 9.1 through a reserve capacity pool,
in accordance with the following terms and conditions:
a. For the purposes of calculating payments due for licensing under this Flow Cal&&n.
section, flows shall be based on measured (ADS) flows, to the maximum extent feasible. Solids
loading flows shall be based on the total flow originating within each member agency. Voting rights,
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,’ as’drscribed in Section I1 shall be in no way affected by remporar~ use ot’ rtxrve capacity under this
section. Total Reserve Capacity is the total capacity shown in paragraph (g,, below.
b. a of UQ. Each agency shall provide monthly reports to EWA
regarding future capacity committed. based upon its acceptance of applications for or issuance of any
building permits, letters of availability, certificates or other entitlements for use which represent that
sewer capacity is available to the applicant or project. or which enforceable or practically commit the
agency to provide future sewer service. Reports shall be submitted in such form as the Board of EWA
may require. Before the measured and committed flows reach 75% of En&a’s total capacity (per
Sections 9. I), the EWA shall initiate a program to ensure adequate capacity to meet projected needs.
c. w. Any use of capacity in excess of 95% of their respective share of
Encina’s total capacity (per Section 9.1) plus 50% of the Total Reserve Capacity, or otherwise in
violation of this section, shall be considered a trespass. At the request of any member agency, EWA
shall, and is hereby author&l to specifically enforce the terms of this section (Section 9.3) against a
member agency or agencies on behalf of the remaining member agencies, including through
commencement of a proceeding at law or equity. The parties agree that specific enforcement is a
proper remedy in that payment of damages is not an adequate remedy for the potential losses to any
member agency resulting from the loss of capacity. For example. replacement of capacity may be,
impractical and the consequences for the economic development of the members are not readily
subject to quantification. Each member agency hereby consents to the commencement of such action
or actions by EWA, and waives any right it may have to further approval of such actions under the
joint powers agreement creating and establishing EWA. In addition to any injunctive relief, EWA may
seek consequential damages on behalf of the remaining member agencies. In any such action, the prevailing party shall be entitled to attorney’s fees and costs.
d. m. In addition to payment of the amount specified herein, each
agency agrees to indemnify, defend and hold harmless the EWA and the other member agencies for
any claim, demand, cost, penalty, fine or damage (including reasonable attorney’s fees and costs of
investigation), arising out of its violation of this section. whether resulting from the agency‘s active or
passive, negligent or intentional act or failure to act to prevent a violation. and notwithstanding the
active or passive negligence of those member agencie6 which are in compliance with the provisions of
this section.
e. we Pm When any member agency’s flows exceed 100% of its capacity
allocation for the treatment of solids, and/or treatment and/or disposal of liquids, for any contin?lous
three-month period, such member agency shall pay for the use of such capacity from the reserve
capacity pool in accord with the schedule of values. as adjusted each July 1 (commencing in July 1996)
by updating the facility spreadsheet to include any additional and changed capital project costs, and to
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
$44,000 per MGD of Unit J capacity per year
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(2) The use of reserve amounts over 50$ of Total Reser1.s 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:
5153,300 per MGD of Unit I liquid capacity per !.ear
$259,700 per MGD of Unit I solids capacity per year
$73,300 per MGD of Unit J capacity per year
Payments to member agencies with unused reserve shall be made annually. Payments from member
agencies shall be made quarterly to the EWA and held in a special account.
f. v llse Over 40% of Rw. If at any time any agency shall have
enforceable or practically committed to provide future sewer setYce which, when added to its then
existing actual flows, equals 95% of its allocated capacity (per Section 9.1) plus 40% of the Total
Reserve Capacity, such agency shall:
I. Immediately halt the acceptance or issuance of any building permits. letters of availability,
certificates or other entitlements for use which represent that sewer capacity is the agency to provid$
future sewer service.
2. Immediately inform EWA, in writing, that it has reached this threshold, of the actions it has
taken to implement (e) (1) above, and of its intention to present a plan to EWA, within 30 days, for
capacity management to prevent the agency from exceeding use of 50% of the Total Reserve Capacity.
g. me C&&Q. Reserve capacity shall be as follows:
unit I
Liquid
~GD-4
Solids -
MGD -- TQ
Unit J
Disposal
MGD % --
VISTA: .40 22.36 .-IO 21.18 .40 21.18
CARLSBAD: .46 25 67 .-I6 24.32 .46 24.32
BUENA: .ll 6.28 .18 9.24 .18 9.24
VALLECITOS: .38 20.94 .38 19.84 .38 19.84
LEUCADIA: .36 19.75 .39 20.68 .39 20.68
ENCINITAS: .09 5.00 .09 4.74 .09 4.74
TOTAL RESERVE 1.8 100.00 1.9 100.00 1.9 100.00
h. Sole Method of Al&&n . No agency shall provide capacity to any other member agency
except pursuant to this section without the unanimous consent of the member agencies; provided that
an agency may agree to provide additional capacity on a tempotar?; basis to an agency which has used
the maximum reserve capacity authorized by this section if: (1) such arrangement provides for
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payments at rates not less that the maximum rcser\‘e capacity r:nc per paragraph (c)(Z). above; and
(2) the capacity so provided does not reduce the Total Reserve Capacity available.
Section 10 CAPACITY RIGHTS FOR RECLAMATION
lO.lm. Any member agency. at its own expense. may, and shall have the
right to, reclaim water from any wastewater in the Joint System which emanates within the jurisdiction
of the respective member agency. And, subject to the following limitations, each member agency shall
have the right to install facilities for the reclamation of water from wastewater.. Any proposed
reclamation shall require the approval of all the member agencies in the event that the proposed
reclamation facility is designed and/or constructed such that (i) any solids or non-treated effluent from
any such facility may be discharged into Unit I of the Joint System and/or (ii) any reclaimed water may
be discharged into Unit J of the Joint System. Such approval shall not be withheld unless the use of
the proposed reclamation facility would adversely affect one or more of the member agencies and the
reclaimer cannot reasonably mitigate the adverse impact. Nothing in this section shall be construed so
as to require approval by the member agencies as to the geographic location of a reclamation facility
constructed solely within the boundaries of any member agency.
10.2 Existing. Section 10.1 above pertains to all future reclamation facilities. .
Currently constructed facilities may be operated to their capacity without further action by owners.
The current reclamation facilities and capacities are as follows:
RECLAMATION
CARLSBAD
LEUCADIA
VALLECITOS
BUENA
Calavera Hills
Gafner . Meadowlark
Shadowridge
I .20 MGD
0.75 MGD
2.00 MGD
1.16 MGD .
Section 11 JOINT ADVISORY COMMl’lTEE
The member agencies have created a Joint Advisory Committee (JAC) to advise the member
agencies and the Operator/ Administrator. JAC shall continue in this advisory role.
ll.lPow~. Recommendations of JAC shall be advisory only. The JAC shall have the
following responsibilities:
11 .l. 1
thereof,
To review the operation and maintenance of the Joint System, including the cost
and make reports and recommendations to the governing bodies of the member agencies;
11.1.2 To review and make recommendations regarding proposed expansion, enlargements or
modifications of the Joint System to the governing bodies of the member agencies; and
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Il. 1.3 To review and make rccommcndations rcgardin~ crmtracts. bud~~ct matters. rcgulatig,ns,
policies. permits and other documents and issues as appropriate to the Operator/Administrator. Each
repon and recommendation of the JAC permitted by this Section shall be considered as having been
made by all the member agencies when made to the Operator/ hdministrator and made in accordance
with the voting rights and percentages set forth below in Section 11.4.4.
11.2 I&xw&UO on JA!Z. JAC shall be constituted by two appointed representatives from each member agency, with one alternate for each appointed representative. JAC representatives may,
but need not, be members of the governing bodies of the member agencies.
11.3 Q&ers of. JAC shall elect its own officers, which shall include a Chairman,
Vice-Chairman, and Secretary. The chairman and Vice-Chairman shail be JAC representatives and
the Secretary may, but need not, be a JAC representative.
11.4 &e.t&oftW.
11.4.1 Regular Meetings. The JAC shall provide for its regular meetings;
provided, however, it shall hold at least one regular meeting per month. The dates, hour. and place of
the regular meetings shall be established by JAC. .
11.4.2 Ralph M. Brown Act. All meetings of the JAC, including, without
limitations, regular, adjourned regular, and special meetings, shall be called. noticed, held, and
conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section
54950 of the California Government Code).
11.4.3 Minutes. The JAC Secretary shall cause to be kept minutes of all
meetings of the JAC, and shall cause a copy of the minutes to be forwarded to each JAC
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 representative’s
percentage vote shall equal one-half of the percentage of that unit’s capacity owned by the
representative’s agency. If only one of an agency’s representatives is present, this representative’s
percentage vote shall equal the total percentage of that unit’ s capacity owned by the representative’s
agency. If both representatives are absent, each alternate shall have a percentage vote equal to one-half
of the percentage capacity of the alternate’s member agency; provided, however, at any JAC meeting
where any member agency is represented by only one alternate, the alternate shall have a percentage of
vote equal to the total percentage of the capacity of the agency he/she represents.
11.5 I&&. JAC shall adopt rules and regulations for the place. time and conduct of JAC
meetings.
11.6 v. The Operator/Administrator (or, if requested by the appointing
member agency, that member agency as to its representatives) shall pay each representative (or
alternate who attends a meeting by reason of the absence of a representative) an attendance fee of
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t\venty-five ($25.00) for each JAC meeting. provided that such payment dot’s not exceed fifty dollars
($50, per calendar month.- Attendance fees shall be paid monthly.
11.7 . . AssistancefromtheODerrrror/Adm The Operator’ Administrator shall provide
. supplies and clerical and secretarial help for JAC. The cost of such supplies and assistance shall be
considered part of the expense of operating and maintaining the Joint System.
Section 12 OPERATOR/ADXIINISTRATOR
The Joint System shall be maintained and operated by any one of the parties hereto, or by
another Public Agency, which party or other public agency shall be known as the Operator/
Administrator.
12.1- .
12.1.1 Joint System. The Operator/ Administrator shall maintain and operate
the Joint System, and shall preserve it in good repair and working order. all in accordance with
recognized sound engineering and accounting practices and local. state. and federal laws and
regulations. .
12.1.2 Pump Stations. The Operator/Administrator also shall operati: and
maintain, at the expense of the Cities of Vista and Carlsbad. the Agua Hedionda and Buena Vista
Pump Stations (formerly Units B and C of the Joint System) within an annual budget prepared by the
Operator/Administrator and approved by Vista and Carlsbad.
12.1.3 Other Facilities. The Operator/Administrator shall have the authority to
operate and maintain other facilities outside the Joint System as recommended unanimously by JAC
and in accordance with Operator/Administrator executed operation agreements, which may include
budgeting responsibilities.
12.2 m Powea Effective August 1. 1988. the member agencies created
a public agency known as the Encina Wastewater Authority (EWA) to serve as the
Operator/Administrator of the Encina Joint System. The EWA shall continue to serve as the
Operator/Administrator until such tii as EWA is terminated by written consent of a majority of the
member agencies, evidenced by certified copies of resolutions by their governing bodies. The
organization, administration, rules, and specific powers of the EWA shall be as set forth in the Revised
Establishment Document establishing the EWA. Upon termination of the EWA and replacement with
another Operator/Administrator, employees of the EWA shall become the employees of the new
Operator/Administrator subject to existing employment contracts. seniority, retirement rights and any
other employee benefits or rights now enjoyed by those employees.
Section 13 BUDGETING AND ACCOUNTING
13.1 w. Annually, the Operatori Administrator shall prepare an operation,
maintenance. and administration budget (hereafter referred to as the 0 & M budget) and a capital
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received from each member agency, the estimated 0 Jc M budget shall constitute merely a proposed
budget, subject to consideration or revisions. The 0 & M budget shall be considered separately from the
capital budget and may be approved independently. In the event a proposed budget is not approved, the
Operator/Administrator shall continue to operate using the 0 & M budget figures from the previous fiscal
Year*
13.1.3-Wpeid 0 & M Contributions. Each member agency shall m pay its
estimated portion.of the budgeted operation, maintenance, and administration costs and shall pay its actual portion
of the costs as determined pursuant to S&on 16 of this Revised Basic Agreement. Quarterly on #y4-&ek
e 15, January 15, April 15 and July 15, the Operator/Administrator s& bii the
nknber agexks and the member agencies shall deposit with the Operator/Administrator approximately one fourth
of the anrnral cost of operation, nkntenance, and administration for the preceding quarter v as
dcsaii herein. Provided, however, that each W-kf invoice F hahey be increased or
decreased to adjust the estimated amount payable based upon the estimated total expenses incur14 in the precedii
m and the estimated total amount and strength of wastewater received from each member
agencytigrheprecediigquarter. Intheeventthatattheendofanyfiscalyeartheamountpaidbyamanber
agency exceeds the amount that should have been charged, the excess shall be credited to the member agency the
following fiscal year. In case of an underpayment, the member agency shall be assessed the amount that should . . have been charged in the following &al year.4
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Each member agency shall make quatterly contribution payments to the Operator/Administrator promptly
atthetimetheybewmedue.”
13.1.4 Actual 0 8c M Contributions. The member agencies agree to contribute
from their treasuries the actual annual costs of the Joint System as divided among the member agencies
pursuant to Section 17 of this Revised Basic Agreement. Such costs shall include the actual costs of (1) all
materials and supplies used or purchased for the operation, maintenance, or administration of the Joint
System, (2) all contracts let by the Operator/Administrator for the performance ofbudgetedO&M
work, and (3) the salaries and wages of all Operator/ Administtator employees providing such services,
including vacations and sick leave benefits, workers’ compensation, social security and retirement
payments, and health insurance. Such costs shall be paid out of the funds deposited with the
Optxator/Adminishator by the member agencies; provided however, the failure of any member agency to
pay the Operator/ Administrator shall not relieve the other member agencies of their obligation to 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 each
year, the Operator/Administrator shall prepare an estimated budget of the amount of money required for
capital improvement projects during each of the next five fiscal years and over the next twenty years.
The es-ted capital budget shall show the estimated amount to be paid by each member 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 budget
adopted by the Operator/ Administrator shall be fotwarded to the JAG Board of EWA for consideration
and for submittal to the member agencies for approval. The Operator/ Administrator’s estimated capital
budget shall be deemed effective upon unanimous approval by the member agencies and upon the receipt
by the Operator/Admi&rator of certified copies of approving resolutions or minute orders from the
governing bodies of each of the member agencies. Until such time as formal approval has been received
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from each member agency, the estimated capital budget shall constitute merely a proposed budget, subject
to consideration or revisions. The capital budget shall be considered separately from the 0 & M budget
and may be approved independently.
13.1.7-4+q&l- Capital Contributions. Each member agency shall payprepey its actual portion of the capital costs except as noted in Section 18 of this Revised Basic Agreement. Quarterly on w . B October i5, January 15, April 15 and July 15, the Operator/Administrator kll bill &e
member &en&s and ie member agencies shall deposit with the Opezttor/Adminisuator approximately OLLC fourth
of the actual estimated capital costs kurred in the precediig quarter, except as otherwise specified in seaion 18.
Any capital limds ranainingat~eendofthefiscalyearshallberetainedandcreditedtowardthememberagencies
for the following fiscal year. Any capital expenses unfunded at the end of the fiscal year shall be debited and charged to the member agencies in the following tkal year.
Each member agency shall make quarterly contribution payments to the Operator/Administrator promptly at the
timetheybecomedue.”
13.1.8 Actual Capital Contributions. The member agencies agree to contribute
their actual capital costs pursuant to Section 18 of this Revised Basic Agreement. Such costs shall include
the actual costs of (1) alI materials and supplies used or purchased for capital improvement of the Joint
System and (2) all contracts let by the Operator/Administrator for the performance of capital
improvement projects. Provided however, the failure of any member agency to pay the Operator/
Administrator shah not relieve the other member agencies of their obligation to pay their proportionate
shares of the capital expenses of the Joint System.
13.1.9 Audit. Annually the Operator/ Administrator shah cause the preparation
of an independent accountant audit of the financial statements.
sectiin 14 ASSISTANCE TO OPERATOR/ADMR
When requested by the Operator/Administrator, the EWA shall provide assistance, and make
recommendations to said ~rator/Administrator relative to all services and duties it is to perform under
the terms of this Revised Basic Agreement.
Section 15 RIGHTS OF WAY AND LAND ACQUTSITIONS
The Operator/Administrator and/or any of the member agencies may, as agreed upon in writing
by all the member agencies, act on behalf of the member agencies in acquiring lands and rights of way
rxceswy for the operation, maintenance, ownership, and use of the Joint System.
Section 16’ PAYMENT OF OPERATION AND MAINTENANCE EXPENSES
16.lAllocation of Exnenses. All operation, maintenance and admiistration expenses for Units I
and J of the Joint System, hereafter referred to as 0 & M expenses, shah be paid by each member agency
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based on each member agency’s percentage of ownership and usage in these units. For the purpose of
this section, the following deftitions shall apply: “usage” shall mean the costs for power, chemicals,
maintenance, and other sewage treatment, solids handling, and disposal processes which result from
wastewater entering Unit I or Unit J; “ownership” shall mean the costs for insurance, administration
expenses, laboratory expenses, plant operations, services and maintenance, and other wastewater
collection and treatment, solids handling and effluent disposal costs which are incurred irrespective of the
amount of wastewater which enters Unit I or Unit J.
16.2Pavment Schedule. Each member agency shall pay its proportionate share of the operation,
maintenance and administration expenses in accordance with Section 13.1 of this Revised Basic
Agreement.
16.3Revenue from Bv-Products. Any revenue received from the sale of by-products arising out
of the operation of the Joint System shall be apportioned to each member agency in the same proportion
as their share of the 0 & M expenses for the Joint System in the year in which the revenue is received.
section 17 PAYMENT OF CAPlTAL EXPENSES
17.1 Allocation of Expenses. Unless otherwise specified herein, capital expenses shall be
allocated based on existing or projected Unit I or Unit J owne~rship as appropriate. Exceptions are as
follows:
17.1.1 Phase IV Expansion. Phase IV capacity and costs are allocated according
to the methodology shown in Exhibit B, attached hereto and made part of this Revised Basic Agreement
by reference.
17.1.2 Joint Flow Metering System. Each member agency is responsible for the
capital expenses of meters and monitors serving its respective service area. Capital expenses for 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 shall be allocated
in accordance with the terms of a separate agreement to be adopted unanimously by the member
agencies.
17.2 Pavment Schedule.Unless otherwise specified herein, capital expenses shall be
billed and paid m on a quarterly basis, based on the expenses incurred in the preceding quarter. Exqtions are as follows:
17.2.1 Phase IV Expansion, Phase IV contract expenses approved by the
Ope&r/Administrator shall be paid once a month based on invoices from the contractor, the design
engineer, and the construction manager. The payments will vary over the duration of the job. The
Ope~tor/Admin&ator shah notify the member agency financial representatives of the amounts needed
following receipt of each month’s invoices. In addition, upon the completion and acceptance by the
Operator/Ad of each of: (a) the Western Summit/TIC construction contract project, and (b) the
Phase IV odor control and associated facilities, and (c) again, upon completion and acceptance of the
Avenida Encii street widening project by the City of Carlsbad per its contract with EWA, adjustments
shall be calculated and paid in the manner set forth in Exhibit B, considering all Phase IV Expansion
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work completed to date or invoiced to the member agencies. Upon completion and acceptance of all work author&d by the Operator/Administrator as part of the Phase IV Expansion, a final adjustment
shall be calculated and paid in accordance with Exhibit B.
17.2.2 Additional Land/Right of Way Acquisition. All expenses shall be paid in
accordance with the terms of a separate agreement to be adopted unanimously by the member agencies.
17.2.3. Other Capital or Operating Expenses. On occasion, ee@&expenses may occur earlier in the tiscal year than would aIlow fix qular quarterly billing. If regular quart&y biUings do not provide necdcd~earlycnoughcturingthefiscalycar,supplemcnral~billingsshallkseattothemmbtr agencies. Insuch~,dreOnmtnr/~~rwillnotifytbemcmberagarcyfinancialrepnscntativaaJ~ in ixhnce as possibk.’
section 18 SETIZEMENT OF DISPUTE OR CONTROVERSY
18.1 Rkbt to Arbitration Should any dispute or controversy arise in connection with the books,
records or accounts of any member agency or in connection with the acquisition, construction,
maintenance, operation repair, reconstruction or enlargement of the Joint System or in connection with
any of the affairs or operation thereof, or the execution of this agreement, the goveming bodies df
member agencies that are affected by such dispute may elect to arbitrate the dispute or controversy in
accordance with this section. In the event of such election, the governing body of each member agency
affected shall appoint or designate one disinterested person as an arbitrator. Said arbitrators so chosen, if
an even number, shall designate an additional disinterested person to make an odd number of arbitrators.
Said arbitrators so chosen shah act as a Board of Arbitrators in connection with any such dispute or
controversy. The findings of fact approved by a vote of the majority of the members of the Board of
Arbitrators shall be binding upon the affected member agencies.
18.2 Rkht of Observation The parties to any arbitration proceedings held under the provisions of
this agreement shall notify every other member agency not a party thereto of such arbitration proceedings
and any other member agency shall have the right to be represented at such proceediigs by a member
agency designated observer.
. . 18.3 Right to Exnert Arbrtratto~ Any controversy which can be determined by an engineer’s or
other expert’s fidngs and which under this section could be submitted to arbitration may, if the parties
thereto agree in writing to do so, be submitted to a named engineer or expert who shall be the sole
arbitrator. Any such engineer shall be a Registered Engineer in the State of California. Any such
enginezr or expert shall be diiinterested as requkd of arbitrators on an arbitration board. He shall
pd*intheSatIlC manner provided herein for an arbitration board.
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Section 19 APPORTIONMENT OF LIABILITY
Any liability incurred by the member agencies. which liability arises out of or in connection
with the operation and/or maintenance of the Joint System, except for costs of improvements to such
facilities and operating and maintenance costs, shall be discharged by payment by each member hereof
in proportion to their respective ownership in the facilities at the time of the incident which results in
the liability.
Section 20 NOTICES
Notices required or permitted under this Revised Basic Agreement shall be sufficiently given if
in writing and if either served personally or mailed by certified mail to the member agencies.
Section 21 SEVERABILITY .
If any one or more of the terms, provisions, promises, covenants or conditions of this
agreement shall by any extent by adjudged invalid, unenforceable. void or voidable for any reason
whatsoever by a court of competent jurisdiction, each and all of the remaining tetms, provisions,
promises, covenants and conditions of this agreement shall not be affected thereby and shall be valid
and enforceable to the fullest extent permitted by law.
Section 22 MODIFICATION OF AGREEMENT
This agreement shall contain all the terms and conditions made between the parties hereto and
shall not be amended except by an agreement in writins signed by all the member agencies.
Section 23 SUCCESSlON
The provisions of this agreement shall be binding upon and shall inure to the benefit of the
successors of the parties hereto.
!section 24 APPROVAL
This agreement shall be approved as of the date that all of the member agencies have approved
this agreement and the Revised Establishment Document.
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IN WITNESS WHEREOF. each pnny hereto has pursuant to resolution duly passed and
adopted by their respective governing bodies caused this Revised Basic Agreement to be executed the
day and year first above written.
CITY OF VISTA
BY Mayor
Attest:
City Clerk
CITY OF CARLS
Attest:
LEUCADIA COUNTY WATER DISTRICT -
BY President
J’ALLECITOS WATER DISTRICT
President Resolution and Signature Sheets and/or
are on file with Encina Wastewater Authority.
BUENA SANITATION DIST’IXIC’T
Chairperson
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CITY OF ENCINITAS
BY Mayor
Attest:
City Clerk
Approved as to form:
BY JAC Counsel .
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EXHIBIT A
L SE IV COST .UJ OCXIOPJ
1. Phase IV cost shaI1 be allocated as follows:
a.All costs shall be allocated by unit process and among flow. BOD, and suspended solids in the manner
recommended for revenue programs by the State Water Resources Controi Board.
b.The replacement value of the existing Unit I and Unit J facilities at the midpoint of construction (projected
ENRLA of 6465) shall be determined. In determining replacement value. grant funding shall be included except for the
grant ftmdiig used to pay for the ‘oversized” portion of “oversized’ items (i.e., items sized or undertaken for the ultimate
site capacity, such as site grading and paving, piping. etc.).
c.Dollar ownership of the existing facilities shall be determined by multiplying existing ownership percentages times
the replacement values determined in step b.
d.The cost of the proposed Phase IV facilities at the midpoint of construction (projected ENRLA of 6465) shall be
estimated by the design engineer.
e.The total value of the EWPCF following construction of Phase IV shall be estimated by adding the replacement
value of the existing facilities (determined in step b) to the estimated cost of the Phase IV project (determined in step d).
f.Needed dollar ownership of the EWPCF following construction of Phase IV shall be determined by multiplying
the revised Unit I liquid and solids and Unit J ownership’s (detetmined in Exhibit A of the Thirty-Ninth Supplement) by the.
totaJ value of the EWPCF following construction of Phase IV (determined in step e).
g.P!tase IV cost allocations shall be calculated by subtracting existing dollar ownership’s (determined in step c)
from needed dollar ownership’s following construction of Phase 1V (determined in step 9. Credits and buyins for existing
faciliries are automatically included in this calculation and need not be calculated separately; however. the dollar values of
each are included below for background.
Estimated Phase IV cost allocations in dollars and percent of total are as follows:
Agency
Vista
Cartsbad
Leucadia
San Marcos
Bucna
Encinitas
Total
Existing Projected Ownership Estimated Effective
Ownership Following Phase IV Phase IV Cost CreditfBuying
22.739.000 28.938.000 6.199.000 11.44 ( 5.455,OoO)
20.585.000 33.216.000 12.631.000 23.31 (745,000)
13,314,OOO 27,297.ooo , 13,983.ooo 25.81 2,916.OOO !
14,099.alO 27.105,OOO ; 13,006,000 24.01 2.091.000
4,436,OOO 11.020,500 6,584SOt.I 12.15 2,023,000
4.694.ooo 6.47o.500 1.776.500-
79.867.000 134,047.OOO 54.18O.OcQ 100.00 0
Fii Phase IV cost allocations will be determined following completion of Phase IV construction and will use the actual project
costs spread according to the final e-r’s estimate instead of the current engineer’s estimate in steps d through g above. Actual
ENRLA at mid-point of constnt&n will be substituted for the projected value in step b.
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MEMO
July 24, 1998
TO: Marie Geofredo, Carlsbad Municipal Water District
FROM: Kathleen D. Shoup, City Clerks Office, Ext. 5106
SUBJECT: REVISED BASIC AGREEMENT - JOINT SEWAGE SYSTEM
Enclosed is the “original” document referenced above that went to Council on
July 21, 1998. Also enclosed is a copy of Agenda Bill No. 14,774 and a copy of
the signed Resolution No. 98-244.
Per our phone conversation today, I am returning the signed “AMENDMENTS
TO THE REVISED BASIC AGREEMENT FOR OWNERSHIP, OPERATION AND
MAINTENANCE OF A JOINT SEWAGE SYSTEM” document to you to process
for additional agency signatures.
We ask that when the completely signed document is returned to you that you
provide the original to the City Clerks Office, keeping a copy for your files if
needed. (We understand that you may get back a copy of the completely signed
document, in which case we would still need to receive a copy for the City’s permanent files.) Please assist us by referencing in a cover note the date
Council approved the amended document - 7/21/98.
THANKS