HomeMy WebLinkAboutAgenda Statement 1985/04/23 Item 7 COUNCIL AGENDA STATEMENT
Item 7
Meeting Date 4/23/85
ITEM TITLE: Resolution / Ze O ( Approving Sixth Amendment to Sewage
Disposal Agreement
SUBMITTED BY: Director of Public Works/City Engineer �.
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
In November and December of 1984 Chula Vista entered into two agreements
relative to the sale of Metropolitan Sewerage System capacity with the Spring
Valley Sanitation District and the Lakeside Sanitation District respectively.
In order to fully effectuate those sales, it is now necessary to execute an
amendment to the Sewage Disposal Agreement of 1960 between the City of San
Diego and the City of Chula Vista (Metro Agreement).
RECOMMENDATION: That the City Council by resolution approve the Sixth
Amendment to the Metro Agreement and authorize and direct the Mayor to execute
said Agreement on behalf of the City.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
By agreement with the Spring Valley Sanitation District the City has agreed to
sell that agency 1 .0 million gallons per day (MGD) in capacity rights in the
Metro system. That sale was conditioned upon the following:
1 . Approval of the sale by Metro.
2. Payment of $50,928 annually to Chula Vista and $12,098 annually to Metro
for approximately 19 years.
By separate agreement with the Lakeside Sanitation District, the City has
agreed to sell that agency 0.1 MGD in Metro capacity rights. That sale was
conditioned upon the following:
1 . Approval of the sale by Metro.
2. Payment of $5,270 annually to Chula Vista and $1 ,210 to Metro for
approximately 19 years.
Per terms of the Metro Agreement, any sale or transfer of capacity in the
Metro system must be finalized through amendment to the Metro Agreement. San
Diego has indicated its intent to a drove the individual sales agreements
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Page 2, Item 7
Meeting Date 4/23/85
previously described concurrent with a Sixth Amendment to the Metro Agreement
reflecting the total change in capacity represented by both sales (1 .1 MGD).
The amendment has been prepared by San Diego and reviewed by Engineering staff
and is now submitted for Council consideration.
The proposed amendment formalizes the reduction in total Metro capacity held
by Chula Vista from 18.2 MGD to 17.1 MGD. It further reduces the City's
annual Metro capacity expense from $207,484 to $194,176. This formal change
in obligations will be effective as of July 1 , 1985.
FISCAL IMPACT: This amendment will reduce annual City expense for Metro
capacity by $13,308. The City will receive annual payments totalling $56,198
per year for approximately 19 years.
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WPC 1482E