HomeMy WebLinkAbout2000-06-27; City Council; 15801; Encina Wastewater Operating & Capital Budget. .-
CITY OF CARLSBAD - A&A BILL
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MTG. 6/27/00
DEPT. CMWD
TITLE-
-’ APPROVAL OF THE ENCINA WASTEWATER
AUTHORITY FY 2001 OPERATING AND
CAPITAL PROGRAM BUDGETS
RECOMMENDED ACTION:
Adopt Resolution No. &UIC0-a07 approving the Encina Wastewater Authority FY 2001
Operating Budget; and
Adopt Resolution No. &lm -g&approving the Encina Wastewater Authority FY 2001
Capital Budget.
ITEM EXPLANATION:
At its meeting of May 18, 2000, the Joint Advisory Committee (JAC) approved
recommendations for the Encina Water Pollution Control Facility (EWPCF) Fiscal Year 2001
Operating and Capital Program Budgets. The Encina Wastewater Authority (EWA) is now
requesting the City Council’s review and approval of these budgets.
The Operating and Capital Program Budgets consist of various facilities and programs that are
operated, maintained and administered by EWA on behalf of the member agencies. The
proposed final EWA Operating and Capital Program Budgets are summarized below.
EWPCF Operating Budget. The Encina Operating Budget for fiscal year 2001 is $7,279,891,
an increase of $241,210, or 3%, over the current year budget. This budget includes funding to
treat and dispose of 8.8 billion gallons, or 24 million gallons per day, of wastewater. Continuing
instability within electrical and bio-solids disposal markets is a significant threat to both short-
and long-term cost containment within the EWPCF Program. However, in FY 2001 EWPCF will
operate enhanced primary treatment facilities. This enhancement is anticipated to increase the
secondary treatment capacity, offset market price fluctuations by reducing process energy
demands, and reducing bio-solids production.
EWPCF Capital Budget. The overall EWPCF Capital Budget for fiscal year 2001 is
$4,295,076, o ver double the budget for the current year. The new budget includes the Phase
V Expansion Project with proposed expenditures at just under $3 million. This amount is
intended to cover design, permitting, and CEQA expenses associated with the project. EWA
staff plans to propose the Phase V construction costs in FY 2002 based on the design.
Regarding the Administrative Building Expansion Project, staff anticipates significant cost
increases since the original project estimate of $2.6 million. Staff is in the process of defining
the project cost and plants to analyze the viability of the entire project. Therefore, no money
has been budgeted for the Administrative Building Expansion for FY 2001.
The annual Maintenance Master Plan and Major Plant Rehabilitation Program are budgeted at
$500,000 for FY 2001 work. The Maintenance Master Plan Program has successfully
concluded a three-year accelerated schedule to eliminate a backlog of projects, therefore the
FY 2001 amount represents a significant reduction from previous years. I?
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Page 2 of Agenda Bill No. Is”, bo 1
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FISCAL IMPACT:
In accordance with the current Encina Basic Agreement, the City of Carlsbad’s share of the
EWA 2001 Fiscal Year Operating Budget is $1,718,742, and $I,015299 for the Capital
Budget. Compared to the current fiscal year, this represents a 4% increase in the City’s share
of the Operating Budget and a 103% increase in the City’s share of the Capital Budget. The
Capital Budget increase is due to EWA’s capital improvement program, including the Phase V
Expansion Project.
Currently, the City of Carlsbad’s Preliminary Operating Budget and Capital Improvement Progra
show appropriations for operating payments to Encina of $2,075,411 and $3,146,171 for capital
improvements. The attached resolution approves the EWA budgets and adjusts the City’s
Sanitation fund budgets as shown in the City of Carlsbad’s Preliminary Operating budget for FY
2000-2001 to the amounts presented here.
In addition, staff recently received the results of the 1998-99 audit of EWA’s books and
records. It shows that the City owes an additional $356,611 to EWA. This represents the
City’s share of costs and reserves in excess of payments made to EWA for that fiscal year.
Staff is requesting an appropriation of this amount in the 1999-00 budget from the Sanitation
fund. There are sufficient funds in the Sanitation fund balance to make the payment.
EXHIBITS:
I. Resolution No.m-aTapproving the Encina Wastewater Authority FY 2001 Operating
Budget.
2. Resolution No. m-d0gapproving the Encina Wastewater Authority FY 2001 Capital Budget.
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RESOLUTION NO. 2000-207
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA APPROVING
THE 2000-2001 FISCAL YEAR OPERATING BUDGET
OF THE ENCINA WASTEWATER AUTHORITY
WHEREAS, the City of Carlsbad is a member agency to the Encina Joint Powers
Agreement entered into on July 13, 1961, for the acquisition, construction, ownership, operation
and maintenance of the Encina Joint Sewer System; and
WHEREAS, the Encina Agreement requires approval for the budget of the Encina
Wastewater Authority (EWA) by the Member Agencies following the recommendation of the
Joint Advisory Committke (JAC); and
WHEREAS, the City Council of the City of Carlsbad desires to approve said budget and
provide for the payment of its share such expenses in accordance with the allocation provided in
the Basic Agreement; and
WHEREAS, there are projected to be suflicient funds in the Sanitation fund for the
payments as they become due.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Carlsbad of
Carlsbad, California as follows:
1. That the Fiscal Year 2000-2001 Operating Budget of the EWA as approved by JAC
on May 18,2000, in the amount of Seven Million, Two Hundred Seventy Nine Thousand, Eight
Hundred Ninety One ($7,279,891) is hereby approved.
2. That the City of Carlsbad’s share of the EWA 2000-2001 Fiscal Year Operating
Budget in the amount of One Million, Seven Hundred Eighteen Thousand, Seven Hundred Forty
Two Dollars ($1,718,742) is hereby approved and the Finance Director is instructed to amend the
Operating budget for the Sanitation fund for fiscal year 2000-01 accordingly.
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3. That the City Manager is hereby authorized to make payment on behalf of the City of
Carlsbad to EWA in accordance with the budget as approved by JAC pursuant to the Encina
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Basic Agreement.
4. That funds in the amount of $356,611 are hereby appropriated to the Sanitation fund
for fiscal year 1999-00 for payment to Encina Wastewater Authority and the Finance Director is
authorized and directed to make such payment.
5. That this resolution shall be forwarded to EWA immediately upon its execution.
PASSED, APPROVED AND ADOPTED at the regular meeting of the Carlsbad City
Council on the 27th day of June 2000, by the following vote to wit:
AYES: Council Members Lewis, Hall, Finnila, Nygaard, and Kulchin.
NOES: None.
ABSENT: None.
ATTEST:
M. WOOD, City Clerk
PC RESO NO. -2- LJ
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REXOLUTION NO.; 2000-208
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA APPROVING
THE 2000-2001 FISCAL YEAR CAPITAL PROGRAM
BUDGET OF THE ENCINA WASTEWATER
AUTHORITY
WHEREAS, the City of Carlsbad is a member agency to the Encina Joint Powers
Agreement entered into on July 13, 196 1, for the acquisition, construction, ownership, operation
and maintenance of the Encina Joint Sewer System; and
WHEREAS, the Encina Agreement requires approval for the budget of the Encina
Wastewater Authority (EWA) by the Member Agencies following the recommendation of the
Joint Advisory Committee (JAC); and
WHEREAS, the City Council of the City of Carlsbad desires to approve said budget and
provide for the payment of its share such expenses in accordance with the allocation provided in
the Basic Agreement; and
WHEREAS, there are sufficient amounts in the Sanitation capital funds to fully fund the
City’s contribution.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Carlsbad of
Carlsbad, California as follows:
1. That the Fiscal Year 2000-2001 Capital Program Budget of the EWA as approved
by JAC on May 18,2000, in the amount of Four Million, Two Hundred Ninety Five Thousand,
Seventy Six Dollars ($4,295,076) is hereby approved.
2. That the City of Carlsbad’s share of the EWA 2000-2001 Fiscal Year Capital
Program Budget is One Million, Fifteen Thousand, Two Hundred Ninety Nine Dollars
($1,015,299) is hereby approved and the Finance Director is instructed to amend the Capital
budget for the Sanitation fund for fiscal year 2000-01 accordingly
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3. That the City Manager is hereby authorized to make payment on behalf of the
City of Carlsbad to EWA in accordance with the budget as approved by JAC pursuant to the
Encina Basic Agreement.
4. That this resolution shall be forwarded to EWA immediately upon its execution.
PASSED, APPROVED AND ADOPTED at the regular meeting of the Carlsbad City
Council on the 27th day of June 2000, by the following vote to wit:
AYES: Council Members Lewis, Hall, Finnila, Nygaard, and Kulchin.
NOES: None.
ABSENT: None.
AT-TEST:
2?975l+Jd
E M. WOOD, City Clerk
PC RESO NO. -2-
July 3,200O
Michael Hogan
Encina Waste Water Authority
6200 Avenida Encinas
Carlsbad Ca 92009-0171
Re: 2001 Operating & Capital Program Budgets
The City of Carlsbad has approved Resolution numbers 2000-207 (Operating Budget) and 2000-
208 (Capital Budget).
Enclosed is a copy of the Agenda Bill and copies of the two resolutions mentioned for your files.
Debra Doerfler
Carlsbad City Clerk’s 0
Enclosure
1200 Carlsbad Village Drive l Carlsbad. CA 92008-1989 l (760) 434-2808 @