Loading...
HomeMy WebLinkAboutReso 1992-16552 RESOLUTION NO. 16552 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SUPPORTING A SPECIAL ACT DISTRICT FOR THE OWNERSHIP, MANAGEMENT AND OPERATION OF THE CLEAN WATER PROGRAM (SEWER TREATMENT AND WATER RECLAMATION) FOR THE GREATER SAN DIEGO AREA WHEREAS, the Clean Water Program Governance Advisory Group was established by Resolution Number R-274888 adopted December 12, 1989 to advise the Council of the City of San Diego concerning the appropriate entity for the management and organization needed to implement the Greater San Diego Clean Water Program, with due consideration to be given by the Advisory Group to the financial impacts of such recommendation; and, WHEREAS, the Advisory Group has recommended the implementation of a special act district to be called the San Diego Area Wastewater Management District, which recommendation has been approved by the following participating agencies in the Metropolitan Sewerage System: San Diego, Chula Vista, Coronado, Del Mar, Imperial Beach, La Mesa, National City, Poway, the County of San Diego, Lemon Grove Sanitation District, Padre Dam Municipal Water District and the Otay Water District as well as the San Diego County Water Authority; and, WHEREAS, the San Diego City Council authorized and empowered its City Manager on behalf of the City, by Resolution Number R-277309,, adopted February 4, 1991 to forward to the California State Legislature enabling legislation, Senate Bill 1225, providing for the formation of the San Diego Area Wastewater District to provide regional management of wastewater and its by-products; and, WHEREAS, a program of public improvements known as Alternative IVA, Phase I, to upgrade the Metropolitan Sewerage System to comply with the Clean Water Act, the State Ocean Plan, and the Coastal Commission requirements includes the following projects to be completed by the end of 2003: Clean Water Operations Network {COMNET} East Mission Bay Pipeline Fiesta Island Replacement Project Mission Valley Pipeline Mission Valley Raw Sludge Pipeline Mission Valley Water Reclamation Plant Mission Gorge Water Reclamation Plant North City Pipeline North City Treatment Plant North City Tunnel Connector Northern Sludge Processing Facility Resolution No. 16552 Page 2 Otay Valley Pipeline Otay Valley Water Reclamation Plant Point Loma Outfall Extension Pomerado Water Reclamation Plant Poway Raw Sludge Pipelines San Diego River Outfall Santee Raw Sludge Pipeline Santee Reclaimed Water Pipeline Santee Water Reclamation Plant South Bay Secondary Treatment Plant South Bay Water Reclamation Plant Southern Secondary Treatment Plant Sewers Southern Sludge Processing Facility Southern Water Reclamation Sewers; and WHEREAS, the predesign, design and construction costs of the Alternative IVA, Phase I projects total Approximately $2,529,000,000 excluding the Pomerado, Poway and Santee projects and financing costs; and, WHEREAS, the City of San Diego is pursuing federal legislation to enable an application for a waiver to secondary treatment at the Point Loma Treatment Plant which may result in the cancellation of some of the Alternative IVA public improvements; and, WHEREAS, the creation of the San Diego Area Wastewater Management District will result in a stronger credit rating and lower borrowing costs than either the City of San Diego continuing to own, operate and borrow for the System, or the creation of a joint powers authority; and, WHEREAS, the Financial Advisor to the City of San Diego has advised that over the borrowing life of the program {a) when compared with using the City of San Diego as an issuer, the special act district may save up to five (5) basis Ioints of interest (.054} on identical financing options, possibly amounting to 25 to $50 million in interest savings on the borrowing program; {b} when compared with using a joint powers authority as issuer, the special act district may save up to 7.5 basis points of interests {.0754) on identical financing options, possibly amountin~cto $37.5 to $75 million in interest savings on the borrowing program; and ) when compared with the financing option of Certificates of Participation {COP's}, the only other financing option available to the City of San Diego when an electorate does not support a bond issue, the special act district may ave up to twenty basis points (.24), possibly amounting to $100 to $200 million in additional costs; and, WHEREAS, the current operating agreements between the City of San Diego and the Metropolitan Sewerage System participating agencies do not provide the Resolution No. 16552 Page 3 participating agencies with a meaningful method of voicing their opinions on System operations prior to System operating decisions being made; and, WHEREAS, the participating agencies strongly desire greater decision-making control over policies and procedures of the Metropolitan Sewerage System. WHEREAS, the City of Chula Vista endorses a more democratic involvement in the governance of regionally provided services and therefore supports SB 1225; however, the City of Chula Vista is evaluating the fiscal impacts of the proposed San Diego Area Wastewater Management District and has not yet committed to participation; and, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby support the passage and implementation of Senate Bill 1225 because it in its current form it provides {1) that an agency could withdraw from the District without penalty if done so within one year from formation or until major district-wide funding obligations are made for constructing regional facilities, and {2) that the City of San Diego assume all continuing obligations, or the costs thereof, contained in the Sewage Disposal Agreement of lg60 between City of San Diego and City of Chula Vista, to build the original Metro I sewer capacity. Presented by Approvad as to by · ' ' / 'Bruce M. BoQ~Ba~' ' Works C~ ty ttorney Resolution No. 16552 Page 4 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 24th day of March, 1992, by the following vote: YES: Councilmembers: Grasser Horton, Malcolm, Moore, Rindone, Nader NOES: Councilmember: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: Beverly A. Authelet,. City Clerk\ STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 16552 was duly passed, approved, and adopted by the City Council held on the 24th day of March, 1992. Executed this 24th day of March, 1992. SeverlyA. Authelet; Cit~ .~i, ~ Clerk":