HomeMy WebLinkAbout2004-06-22; City Council; 17686; EWA 2005 Operation & CIP BudgetsCITY OF CARLSBAD -AGENDA BILL
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APPROVAL OF THE ENCINA WASTEWATER
4B# 17,686
VITG. 6/22/04 I AUTHORITY FY 2005 OPERATING AND
IEPT. PW/M&O CAPITAL PROGRAM BUDGETS
RECOMMENDED ACTION:
CITY COUNCIL OF THE CITY OF CARLSBAD: Adopt Resolution No.2004-214 approving the Encina
Wastewater Authority FY 2005 Operating Budget; and, adopt Resolution No.2004-215 approving the
Encina Wastewater Authority FY 2005 Capital Budget.
ITEM EXPLANATION:
At its meeting of June 2, 2004, the Encina Wastewater Authority (EWA) Joint Advisory Committee
approved recommendations for the Encina Water Pollution Control Facility (EWPCF) Fiscal Year 2005
Operating and Capital Improvement Program Budgets. The Joint Advisory Committee is now
requesting the City Council's review and approval of these budgets.
The Operating and Capital Improvement 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 Improvement Program Budgets are summarized below.
EWA Operating Budget. The Encina Operating Budget for fiscal year 2005 is $9,274,923, an increase
of $403,277, or 4.5%, over the projected fiscal year 2004 year budget. This budget includes funding to
provide wastewater treatment and disposal services to approximately 300,000 persons in a 131 square
mile service area of northwest San Diego County.
EWA Capital Improvement Budget. The overall EWA Capital Budget for fiscal year 2005 is
$38,300,782 for an increase of $27,231,094 over the fiscal year 2004 budget.
Major budget issues included the following: . Increasing Wastewater Flows. Since 2002, wastewater flows reaching the Encina Water Pollution
Control Facilities (EWPCF) have increased 12%, from an average of 23.4 million gallons per day
(MGD) to an average of 26.2 MGD. Increasing flows directly increase biosolids disposal, chemical
and energy costs. Higher wastewater flows coupled with increasing commodities, services and
personnel costs mean that continued compliance with the EWPCF's air and ocean discharge
permits will cost more in the future. . Capital Improvement Projects. With the Joint Use Flow Equalization Facilities now under
construction, EWA has officially broken ground on a $65 million campaign to expand and modernize
the Encina Joint Facilities to meet member agency requirements through 2025. Projects funded in
prior years include the Building Program ($12.3 million) and Joint Use Flow Equalization ($9.7
million). In FY 2005, $36.1 million is proposed to fund the Phase V Expansion Project that will
increase liquid and solids treatment capacities to 40.51 and 43.31 million gallons per day (MGD),
respectively, through implementation of the Biosolids and Energy Management strategic plans
adopted by the Board of Directors in 2003. The Board of Directors held a special meeting on June 2,
2004, to discuss the allocation of Phase V costs, as well as review and approve the 2005 Operating
and Capital Improvement Program budgets.
Page 2 of Agenda Bill No. 17,686
FISCAL IMPACT:
EWA Operatinq Budqet. In accordance with the current Encina Basic Agreement, the City of Carlsbad’s
share of the EWA 2005 Fiscal Year Operating Budget is $2,487,476 allocated as follows:
EWPCF - $2,238,22 1 . Source Control - $ 124,273
Pump Stations - $ 124,982
Carlsbad’s share of the EWA Operating budget is more than the amount that was presented to the
Council on June 15th. The City’s Sanitation Operating Budget will be adjusted by $298,070 to reflect
the revised amount. Sufficient revenues are available in the City’s Sanitation Operating Budget to cover
this increase.
EWA Capital Improvement Budqet. In accordance with the current Encina Basic Agreement, the City of
Carlsbad’s share of the EWA 2005 Capital Improvement Budget is $8,053,014 allocated as bllows:
Phase V Expansion Project - $7,507,000
Other CIP Expenses - $ 546,014
There is no change to the amount of Carlsbad’s share of the EWA Capital Improvement Program
Budget that was adopted by Council on June 15th.
EXHl BITS:
1. Resolution No. 2004-214
2. Resolution No. 2004-215
Imp rove men t Budget.
approving the Encina Wastewater Authority FY 2005 Operating Budget.
approving the Encina Wastewater Authority FY 2005 Capital
Department contact: R. Gteaney, (760) 438-2722, bgrea@ci.carlsbad.ca.us
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EXHIBIT 1
RESOLUTION NO. 2004-214
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA APPROVING THE 2005 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 City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That the Fiscal Year 2005 Operating Budget of the EWA as approved by JAC on
June 2, 2004, in the amount of $9,274,923 is hereby approved.
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.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the City of Carlsbad City
That this resolution shall be forwarded to EWA immediately upon its execution.
incil held on the 22nd day of June , 2004 by the following vote, to wit:
AYES:
NOES: None
ABSENT: None
Council Members Lewis, Finnila, Kulchin, Hall and Packard
E M. WOOD, City Clerk
(SEAL)
Resolution No. 2004-214 page 2
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EXHIBIT 2
RESOLUTION NO. 2004-215
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA APPROVING THE 2005 FISCAL
YEAR CAPITAL IMPROVEMENT PROGRAM BUDGET OF
THE ENCINA WASTEWATER AUTHORITY
WHEREAS, the City of Carlsbad is a member agency to the Encina Joint Powers
4greement 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
aastewater Authority (EWA) by the Member Agencies following the recommendation of the Joint
4dvisory 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
:he Basic Agreement; and
WHEREAS, there are projected to be sufficient funds in the Sanitation capital fund to fully
fund the City’s contribution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1.
2.
3.
4.
Ill
Ill
Ill
That the above recitations are true and correct.
That the Fiscal Year 2005 Capital Improvement Program Budget of the EWA as
approved by JAC on June 2, 2004, in the amount of $38,300,782 is hereby
approved.
That the City of Carlsbad’s share of the EWA 2005 Fiscal Year Capital Program
Budget in the amount of $8,053,014 is hereby approved.
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.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the City of Carlsbad City
That this resolution shall be forwarded to EWA immediately upon its execution.
Souncil held on the 22nd day of June , 2004 by the following vote, to wit:
AYES:
NOES: None
Council Members Lewis, Finnila, Kulchin, Hall and Packard
ABSENT: None
CLAUDE A. LEWIS,
/ (SEAL)
Resolution No. 2004-215 page 2