HomeMy WebLinkAbout2006-03-14; Municipal Water District; 613; Approve Budget 2005-06 Encina Wastewater Authority for Carlsbad Water Recycling Facility Transfer Appropriations Phase II Recycled Water Captial Improvement Program ProjectsAB#
MTG.
DEPT.
CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL , n '
613
3/14/06
ENG
TITLE: APPROVE OPERATION AND MAINTENANCE
BUDGET INCREASE FOR FISCAL YEAR 2005-06 WITH
ENCINA WASTEWATER AUTHORITY FOR THE
CARLSBAD WATER RECYCLING FACILITY AND
TRANSFER APPROPRIATIONS BETWEEN PHASE II
RECYCLED WATER CAPITAL IMPROVEMENT PROGRAM PROJECTS
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RECOMMENDED ACTION:
Adopt Resolution No. 1270 to approve an operations and maintenance budget increase
for Fiscal Year 2005-06 with the Encina Wastewater Authority for the Carlsbad Water Recycling
Facility, and authorize transfer of appropriations between projects.
ITEM EXPLANATION:
This agenda bill includes two items for the Board of Directors consideration. The first item is a
request for additional appropriations for operating expenses related to the Carlsbad Water
Recycling Facility. The treatment facility for the Encina Basin Water Reclamation Program, Phase II
Project includes the 4.0 million gallon per day Carlsbad Water Recycling Facility (CWRF), a 7.0
million gallon flow equalization storage reservoir, an influent pump station, and a recycled water
pump station. A "Notice of Completion" was approved on October 5, 2004 for the CWRF. The
7.0 million gallon flow equalization storage reservoir, the influent pump station, and the recycled
water pump station are part of Encina Wastewater Authority's (EWA) "Joint Use Project", where a
Notice of Completion for this work was approved on October 26, 2005.
The Carlsbad Municipal Water District's (District's) personnel operate and maintain the recycled
water pump station as part of the recycled water distribution system. However, the District entered
into a Memorandum of Understanding (MOU) with EWA to perform operation and maintenance
activities for the remaining facilities listed above. The agreement calls for EWA to provide certified
level operators and other appropriate personnel, obtain annual permits, secure utilities and
chemicals, and provide maintenance, repair, legal, accounting, insurance, and administration
services under an annual budget to be approved by the District.
As required by the MOU, on May 1, 2005, EWA submitted a budget in the amount of $353,325 to
operate and maintain the CWRF, for Fiscal Year 2005-06. This initial first year budget was based on
consultations with the design engineer and assumed production rates from the new CWRF. In a
letter dated January 26, 2006, the EWA submitted a letter requesting that their FY 05-06 budget be
amended to $529,069 reflecting an increase of $175,744. Discussions with EWA indicate the
following reasons for their budget increase:
• The flow equalization project was not completed until early September 2005. Start-up work
by EWA staff was originally budgeted for the previous fiscal year, but was actually performed
during the current fiscal year. Prior year remaining appropriations ($63,197) were not carried
forward for these activities.
• It has taken longer to start the plant, requiring additional staff time, power, and chemicals to
obtain optimum performance out of treatment components. Because of significant
automation control adjustments, many processes required additional attention beyond
EWA's assumptions for staffing, power, and chemicals. In addition to the increased usage,
the cost of power and chemicals has risen beyond expected inflationary increases of
5 percent.
• Certain assumptions by EWA to meet more restrictive Regulatory Agency reporting
requirements have required manual calculations rather than computer based information,
which increases staff time. These are being addressed through programming updates to the
data manager.
• Certain assumptions were made by EWA on methodologies they would employ to operate
the facility during conditions when the water would be needed and during periods of time
when the treatment plant would be in standby mode. The City had indicated only four months
of operation to produce recycled water would be needed for this first year of operation;
however, demand for recycled water is exceeding the four months assumed.
Page 2
Staff has reviewed the information provided by EWA to support their request for a budget increase
and concurs in the amount being requested.
The second item for the Board of Director's consideration is a transfer of existing appropriations
between two project components of the CWRF Phase II Project, the Flow Equalization Project
(3888), and the Recycled Facility Construction Project (3675). The Flow Equalization Project is
constructed by EWA and the District is invoiced quarterly for their share of expenses. Due to change
orders processed at EWA, the Flow Equalization cost share for the District increased slightly, and an
additional appropriation of $35,000 is needed. Previously appropriated contingency funds are
available from the Recycled Facility Construction Project and staff, therefore, requests a transfer
from that account to the Flow Equalization Project budget. EWA staff is indicating that they are
reviewing all costs associated with their Flow Equalization Project which may result in a final minor
adjustment to this appropriation in the future.
ENVIRONMENTAL REVIEW:
A Mitigated Negative Declaration was prepared for the Phase II Project. This was approved by the
City Council on January 25, 2000 under Case No. EIA 99-09.
FISCAL IMPACT:
EWA 05/06 Fiscal Year Budget
The CMWD will pay for 100 percent of the operation and maintenance costs at the CWRF. The total
cost for EWA's operation and maintenance work activities is now estimated to increase by
$175,744, for a total of $529,069 for Fiscal Year 2005-06. All these additional one-time costs are
paid from the Recycled Water Operating fund through revenue collected on the sale of recycled
water from CMWD's Phase I and Phase II customers. Sufficient funds are available.
Revision to Capital Improvement Program Budget
The Capital Improvement Program for the Phase II project was budgeted under five project account
numbers, which included 3675, 3887, 3888, 3889, and 3890. The construction bids for the Phase II
project have all been received. Based on the bids received, it is necessary to redistribute the budget
as shown in the table below. There is no net fiscal impact to this action.
Project
Fund Account
3675
3888
Project
Description
CWRF
Flow Equalization
Current
Appropriation
12,165,019
4,093,280
Proposed
Revision
(35,000)
35,000
Recommended
Appropriation
12,130,019
4,128,280
EXHIBITS:
1 . Location Map.
2. Resolution No.
Operation and
1270 to approve an increase to the Fiscal Year 2005/2006
Maintenance Budget for the Carlsbad Water Recycling Facility with
Encina Wastewater Authority and authorize transfer of appropriations between projects.
DEPARTMENT CONTACT: William Plummer, (760) 602-2768, bplum@ci.carlsbad.ca.us
LOCATION MAP
ENCINA WATER
POLLUTION
^XCONTROL FACILITY
RECYCLED WATER
PUMP STATION
PUMP STATION
FLOW
EQUALIZATION
TANKS
CARLSBAD WATER
RECYCLING
FACILITY
PROJECT
SITE
CITY OF OCEANSDE
HKSHWAY
VICINITY
MAP
NOT TOSCALE
PROJECT NAME
AGREEMENT BETWEEN CITY AND EWA
FOR FLOW EQUALIZATION JOINT USE FACILITIES
PROJECT
NUMBER
3675-2
EXHIBIT
1
RL C:\aS\OWG\ProJects\BBPIuram9r\LocMaps\aP_36752_AgraamsniCity-EWA.dw9 01/31/02 15:49 By.lft
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RESOLUTION NO. 1270
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A RESOLUTION OF THE BOARD OF DIRECTORS OF
3 CARLSBAD MUNICIPAL WATER DISTRICT (CMWD) TO
INCREASE THE FISCAL YEAR 2005/2006 BUDGET FOR THE
4 CARLSBAD WATER RECYCLING FACILITY AND AUTHORIZE
TRANSFER BETWEEN CAPITAL PROJECTS.
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WHEREAS, the Encina Basin Water Reclamation Program, Phase II Project included the
Carlsbad Water Recycling Facility (CWRF) and Joint Use Flow Equalization Project, which was
funded through a $5 million grant and a $36.4 million low-interest loan from the State Water
Resources Control Board, a $2.2 million grant from the Environmental Protection Agency, and a
25 percent project grant from the Bureau of Reclamation; and
WHEREAS, a "Notice of Completion" was filed on the Carlsbad Water Recycling Facility
on October 5, 2004, and the Encina Wastewater Authority filed a Notice of Completion on
October 26, 2005 for the Joint Use Flow Equalization Project which includes a recycled water
pump station, an influent pump station, and a 7.0 million gallon flow equalization tank, which are
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part of the CWRF; and
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WHEREAS, an Operations and Maintenance Memorandum of Understanding was
15 approved between the Encina Wastewater Authority and the Carlsbad Municipal Water District for
1 fi the operation and maintenance of the Carlsbad Water Recycling Facility on April 19, 2005; and
WHEREAS, EWA prepared and submitted a budget to operate and maintain the CWRF in
the amount of $353,325 for Fiscal Year 2005/2006 which was approved by the Carlsbad Municipal
Water District Board on June 21, 2005; and
WHEREAS, EWA submitted a letter dated January 26, 2006, requesting an increase to
their budget in the amount of $529,069 reflecting an increase of $175,744, and that staff has
carefully reviewed EWA's requested budget increase and concurs in the amount; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Carlsbad Municipal
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Water District (CMWD) of the City of Carlsbad, California, as follows:
24 1. That the above recitations are true and correct.
25 2. That the Recycled Water Operating fund shall be used to pay Encina Wastewater
26 Authority's expenses associated with the operation and maintenance of the Carlsbad Water
Recycling Facility identified in "Memorandum of Understanding for the Operation and
Maintenance of the Carlsbad Municipal Water District Water Recycling Facilities".
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3. That the Operation and Maintenance budget for Fiscal Year 2005/2006 be
increased to $529,069 for Fiscal Year 2005/2006.
4. That the Finance Director is authorized to appropriate an additional $175,744 to
the Recycled Water Operations budget and transfer $35,000 between the Flow Equalization and
CWRF Capital Improvement Program project budgets.
PASSED, APPROVED AND ADOPTED at a special meeting of the Carlsbad Municipal
Water District held on the 14th day of March , 2006 by the following vote, to wit:
AYES: Board Members Lewis, Hall, Kulchin, Packard
NOES:
ATTEST:
LORRAINE M. WOOD, Secretary (SEAL)
JT
CARLSBAD WATER RECYCLING FACILITYMID-YEAR OPERATING BUDGET INCREASEFROMENCINA WASTEWATER AUTHORITY
Carlsbad Water Recycling FacilitySOURCE INFORMATION FOR EWA BUDGETEngineer’s Design ReportInterviews with Design EngineerCarlsbad’s 6 month water demand schedule (no operation from Nov. thru April)EWA’s previous experience at Shadowridge WRF
Carlsbad Water Recycling FacilityOPERATING BUDGET BACKGROUNDApril 2005-MOU approved with EWAFirst Year Operating Budget EWA Budget preparation: Jan. - April 2005Information was collected on 3 cost factors:1.Power – used total motor horsepower and time of operation2.8 Chemicals – based on assumed water quality & treatment process requirements3.Staffing – based on degree of automation and maintenance proposed in Engineer’s Report
Carlsbad Water Recycling FacilityREASONS FOR MID-YEAR BUDGET INCREASEDelay in testing and operation (to accommodate completion of Flow Equalization Project (9/2005)Additional staff time, power and chemicals (during startup activities and no carryover budget from previous year for this work)Manual production of Regional Board ReportsAssumptions made on Operational vs. Standby mode
Carlsbad Water Recycling FacilityRequested Budget IncreaseOriginal: $353,325Increase: $175,744Total: $529,069