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HomeMy WebLinkAboutAgenda Statement 1976/12/21 Item 08CITY OF CHULA VISTA COUNCIL AGENDA STATEMENT ITEM N0. 8 FOR MEETING OF: 12 21 76 ITEM TITLE Resolution 8451:Approving Agreement Transferring Metro Capacity Reservation to Spring Valley Sanitation District SUBMITTED BY~ Director of Public Works/City Engineer /~ ~// /J ITEM EXPLANATION In an agreement dated March 1, 1961 with the City of San Diego (and sub- sequent amendments), Chula Vista obtained 22.1 million gallons per day of capacity reservation in the Metropolitan Sewerage System. This capacity was anticipated to be necessary to provide sewer service to the Chula Vista "sphere of influence" on the basis of a study by Engineering Science, Inc. in 1959. In 1962, the Spring Valley Sanitation District and Chula Vista entered into an agreement which formally recognized the relationship between Chula Vista's capacity reservation and the area ("sphere of influence") for which that capacity was to be used. In exchange for such recognition Chula Vista agreed to sell capacity rights to the District (or any other duly qualified agency) for the purpose of serving properties within a specified portion of the recognized sphere of influence. The agreement further stipulated the manner of computing the sale price. Exhibit 1 of the attached proposed agreement depicts both the total "sphere of influence" and the specified portion of the sphere (Area 2) for which capacity rights could be purchased from Chula Vista. During the life of the agreement :the District .has obtained sewage capacity through a number of "lease" agreements with Chula Vista. '1'he District presently utilizes in excess of 800,000 gallons per day of the City's capacity reservation. This arrangement makes it necessary for both agencies EXHIBITS AI I AGHEU Agreement x Resolution X Ordinance Plat Other Environmental Document: Attached Submitted on STAFF RECOMMENDATION: Adopt resolution approving agreement and authorizing the Mayor to execute agreement for the City. BOARD/ COMMISSION RECOMMENDATION COUNCIL ACTION Form A-113 (Rev 5-75) Agenda Item No. 8 Supplemental page 2 to maintain complex records of amounts periodically paid and payable, and maps of areas having sewer service provided by the District. The presently proposed agreement will cancel the earlier lease agreements through an outright sale of capacity rights (1,000,000 gallons per day). This action will eliminate most of the current record keeping. It will also provide the District with a small "cushion" for providing sewer service to new development areas within the Chula Vista sphere of influence. If and when that "cushion" is fully utilized, it will be necessary that the District once again purchase additional capacity from the City. The current lease system was initiated because the District had insufficient funds with which to make a direct purchase of capacity rights. Therefore, a timed payment system was devised. This system has proven to be cumbersome, unreliable and inefficient. The District is now on a more secure financial basis and is desirous of completing the purchase. The proposed agreement is intended to simplify the relationship between the two agencies and thereby bring about a reduction in cost of contract management. Exhibit 2 to the attached agreement details the calculations determining the sale costs. The purchase of the capacity rights by the Spring Valley Sanitation District from the City of Chula Vista, after subtracting the amounts paid to the City in past years by the district, is about $40,000. The original agreement stipulated the method for determining the costs.