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Home My WebLink About2002-07-09; City Council; 16814; Encina Wastewater Authority FY 2003 BudgetsCITY OF CARLSBAD - AGENDA BILL 4B# 16,814 IEPT. PW CITY ATTY. @ AUTHORITY FY 2003 OPERATING AND ITG. 7/9/02 DEPT. HD. m: CAPITAL PROGRAM BUDGETS 1- APPROVAL OF THE ENCINA WASTEWATER CITY MGR. a RECOMMENDED ACTION: Adopt Resolution No. 2002-199 approving the Encina Wastewater Authority FY 2003 Operating Budget; and Adopt Resolution No. 2002-200 approving the Encina Wastewater Authority FY 2003 Capital Budget. ITEM EXPLANATION: At its meeting of May 22, 2002, the Joint Advisory Committee (JAC) approved recommendations for the Encina Water Pollution Control Facility (EWPCF) Fiscal Year 2003 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. EWA Operating Budqet. The Encina Operating Budget for fiscal year 2003 is $8,697,450, a decrease of $243,794, or 3%, under the fiscal year 2002 year budget. This budget includes funding to treat and dispose of 13.1 billion gallons, or 36 million gallons per day, of wastewater. The majority of the decrease is due to reduced expense estimates to staff, market and regulatory activity impacting the four major expense categories; energy, chemicals, biosolids, and personnel. m. The electricity and natural gas markets have stabilized which further reducing EWAs estimated operating expenses. EWA staff will also be recommending that EWA join a natural gas joint purchase program administered by the state Department of General Services that will which EWA participates (Le., CSRMA and LAIF). minimize market based expense risks in much the same manner as other "pool" programs in Chemicals. Chemicals Enhanced Primary Treatment (CEPT) reduces the demand for process energy by allowing operators to treat wastewater flows with fewer unit processes on-line. In addition, CEPT increases the volume of bio-gas produced in the treatment process and therefore available for use in the cogeneration process. Combined with other related process optimizations, CEPT also reduces the demand for chemicals in odor control. In effect, CEPT has increased treatment plant capacity. Biosolids. Because the EWA Board of Directors approved a $438,000 transfer from FY 2002 Natural Gas appropriations to fund the new Biosolids Disposal Contract, adverse fiscal impacts of Riverside County's ban on land application of biosolids was absorbed in the current fiscal year, Compliance with the contract's prompt payment provisions is saving Carlsbad and other member agencies over $20,000 annually. Personnel. The EWA 2003 Operating Budget reflects a base budget consisting of existing compensation plus step and related increases for eligible EWA employees. The decrease in personnel expense is a partial result of the EWA reorganization. EWA will review a series of management recommendations to align existing human resources in accordance with their Strategic Plan. . 0 Page 2 of Agenda Bill No. 16,814 EWA Capital Budqet. The overall EWA Capital Budget for fiscal year 2003 is $1,770,050 a decrease of $9,197,345, or 84% under the fiscal year 2002 budget. The bulk of the decrease is due to no new capital projects being proposed for FY 2003. EWA staff will, however, seek authority to spend funds previously budgeted for Phase V Expansion to initiate implementation of the Biosolids Strategic Plan. FISCAL IMPACT: In accordance with the current Encina Basic Agreement, the City of Carlsbad's share of the EWA 2003 Fiscal Year Operating Budget is $2,112,930, and $447,122 for the Capital Budget. Compared to the current fiscal year, this represents a 1% decrease in the City's share of the Operating Budget and a 84% decrease in the City's share of the Capital Budget. The attached resolutions approve the EWA budgets and adjust the City's Sanitation fund budget currently shown in the City of Carlsbad's FY 2002-2003 Preliminary Operating budget to the amounts presented here. EXHIBITS: 1. Resolution No. 2002-199 approving the Encina Wastewater Authority FY 2003 Operating Budget 2. Resolution No. 2002-200 approving the Encina Wastewater Authority FY 2003 Capital Budget. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ., c, , ;i 1'. E RESOLUTION NO. 2002-199 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING THE 2003 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 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 projected to be sufficient 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: I. That the Fiscal Year 2003 Operating Budget of the EWA as approved by JAC on May 22, 2002, in the amount of $8,697,450 is hereby approved. 2. That the City of Carlsbad's share of the EWA 2003 Fiscal Year Operating Budget in the amount of $2,112,930 is hereby approved and the Finance Director is instructed to amend the Operating budget for the Sanitation fund for fiscal year 2002-03 accordingly. 3. That the City Manager is hereby authorized to male 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. I i C t - i E 5 IC 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 21 28 4. That this resolution shall be forwarded to EWA immediately upon its execution. PASSED, APPROVED AND ADOPTED at the regular meeting of the Carlsbad Cit) Council on the 9th day of JULY 2002, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Finnila, Hall NOES: None ABSENT: Council Member Nygaard ATTEST: INE M. WOOD, City Clerk (SEAL) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2002-200 A RESOLIJTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING THE 2003 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, 1961, for the acquisition, construction, owncrship, 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: I. That the Fiscal Year 2003 Capital Program Budget of the EWA as approved by JAC on May 22, 2002, in the amount of $1,770,050 is hereby approved. 2. That the City of Carlsbad’s share of the EWA 2003 Fiscal Year Capital Program Budget is $447,122 is hereby approved and the Finance Director is instructed to amend the Capital budget for the Sanitation fund for fiscal year 2002-03 accordingly 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 9th day of JULY 2002, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Finnila, Hall NOES: None ABSENT: Council Member Nygaard ATTEST: . WOOD, City Clerk