Item 14 - Approval of Appropriations from Sewer Ent. Fund for City of San Diego Wastewater Back-Billing and FY 20 Wastewater FeesApril 20, 2021, Item #14DATE: TO: FROM: CONTACT: SUBJECT: Summary: April 20, 2021 Honorable Mayor and Members of the City Council Eric Heidemann, Director of Public Worksq,~ Jessica Parks, Utilities Administrator Sf' (858) 668-4703 or jparks@poway.org Approval of Appropriations from the Sewer Enterprise Fund for the City of San Diego Wastewater Back-Billing and FY 20 Wastewater Fees The City of Poway is a participating agency with the City of San Diego's Metropolitan Sewerage System and pays its proportional cost of the overall program including treatment, and disposal of wastewater. Recently, the City of San Diego invoiced Poway for previous wastewater services that total $225,231.57 and provided the City of Poway an amount to be billed this fiscal year for an additional $29,073.00. The current fiscal year budget does not have funds available to pay for these invoices and additional appropriations are being requested. Recommended Action: It is recommended that the City Council receive this report and authorize an appropriation of $254,304.57. Discussion: Industrial Wastewater Control Program Back-Billing The City of Poway utilizes the City of San Diego's Metropolitan Wastewater System to treat and dispose of Poway's wastewater. Poway has been a participating agency in the Metropolitan Sewerage System (Metro System) since Poway's incorporation in 1980 and is one of twelve participating agencies that convey wastewater to the Metro System for treatment. In the 1980s, the City of San Diego's discharge permit (CA 0107409) issued by the Environmental Protection Agency and the California Water Quality Control Board required an Industrial Pretreatment Program. Poway entered into an agreement in July 1990 with San Diego to have them administer Poway's Industrial Pretreatment Program through the issuance of Industrial Wastewater Discharge Permits, pretreatment inspections, wastewater sampling and analysis, investigations, collecting of fees and other industrial pretreatment program responsibilities. The costs for this pretreatment program, known as the Industrial Wastewater Control Program (IWCP}, is collected through Poway 1 of20
April 20, 2021, Item #14wastewater users bi-monthly sewer bill. Poway then submits payment to San Diego directly through the sewer enterprise fund. In 2013, San Diego performed an audit of the IWCP and found that San Diego had not billed its participating agencies for a five-year period (FY 2008 to FY 2012). It was also identified that the fees had not been updated since 1984 and that the cost recovery practices were not in compliance with Proposition 218 (San Diego was passing on most of the IWCP program costs, including the participating agencies portion, to San Diego wastewater customers). The audit had eight recommendations which included San Diego seeking recovery of the IWCP fees that went unbilled since FY 2008 and complete an IWCP fee study that would be in compliance with state regulations. San Diego completed three of the recommendations, including recovering fees that went unbilled. Poway was invoiced for FY 2008 through FY 2012 in the amount of $98,519.10, which was paid in fiscal year 2014. In 2020, San Diego had a follow-up performance audit of the IWCP. The audit found that San Diego had not billed its participating agencies for a four-year period (FY 2017 -FY 2020). Also identified was that an IWCP fee study had not been completed and that the cost recovery practices were still out of compliance with Proposition 218. The audit had several recommendations, including collecting unbilled fees since FY 2017, performing a program cost allocation study, and billing the industrial permittees directly eliminating the participating agencies as an intermediate. Poway received an invoice for IWCP services provided in FY 2017 through FY 2020 in the amount of $107,890.00 (Attachment A). The City of San Diego performed a cost allocation study for the IWCP which was completed in November 2020 and is proceeding through their committees for its approval along with the recommendation to bill the IWCP permittees directly. Since the IWCP fees had not been updated in almost 40 years, the proposed fee schedule in the cost allocation study are significant. Poway has 14 businesses that are currently permitted in the IWCP and with San Diego's recommendation to bill the permittees directly, these businesses will be impacted. Poway staff reached out to these businesses by phone to inform them of San Diego's proposed fee increases and changes to the billing of the program. San Diego also sent a letter to each IWCP permittee to inform them of the proposed changes (Attachment B). If the cost allocation study and its recommendations are approved by San Diego, the City of Poway will no longer receive a bill for the IWCP, and all permittees will be billed directly. The current fiscal year budget has $10,000.00 for FY 2021 IWCP services but does not have funds available for the FY 2017 through FY 2020 invoice from San Diego. Penasquitos Sewerage Pump Station Reconciliation and Estimate Annually, San Diego sends Poway an estimated cost of Operations and Maintenance (O&M) for facilities Poway shares with San Diego to transport, treat and dispose of wastewater. On March 6, 2020, San Diego provided Poway with an estimate of O&M expenses for fiscal year 2020 for the Penasquitos Pump Station in the amount of $378,192.00 (Attachment C). On February 10, 2021, San Diego submitted to Poway an invoice for its end of the year reconciliation O&M for fiscal year 2020 (Attachment D). The O&M costs totaled $500,140.45, in which Poway owes an additional $121,948.77. Supporting documentation of the reconciliation showed that the higher costs were associated with unforeseen maintenance expenses such as repairs to pumps, the purchase of a caustic tank, and CED lighting. As this additional amount was not budgeted, funds are unavailable for payment of the invoice. 2 of 20
April 20, 2021, Item #14It's worth mentioning that last year, the end of year reconciliation O&M for the Penasquitos Pump Station for fiscal year 2019 concluded that Poway was owed a refund in the amount of $117,341.57 (Attachment D). For the current fiscal year 2021 Penasquitos Pump Station estimate, San Diego did not provide Poway with the information in a timely manner. On June 18, 2020, two days after Poway City Council approved the Fiscal Year 2021 budget, San Diego provided the FY 2021 estimate of O&M for the Penasquitos Pump Station in the amount of $407,265.00, payable in four quarterly installments of $101,816.13 (Attachment E). Unfortunately, due to the delay in receiving the estimate from San Diego, the budgeted amount remained the same as the previous year at $378,192.00, which is $29,073.00 less than the estimate. Environmental Review: This item is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Staff requests a one-time appropriation in the amount of $254,304.57 to meet the expenses for the San Diego back-billing of FY 2017 through FY 2020 IWCP (403070-17200 $107,890), the FY 2020 End of Year Reconciliation of O&M for the Penasquitos Pump Station (403070-28040 $117,341.57}, and to have funds available for the FY 2021 Penasquitos Pump Station O&M estimate (403070-28040 $29,073). A portion of the IWCP funds have previously been collected. The remaining funds requested above will be paid for with reserves and recuperated in subsequent years via rate payer bills. Sufficient funds are currently available in the Sewer Enterprise Fund for these appropriations. Public Notification: None. Attachments: A. City of San Diego Invoice for FY 2017 to FY 2020 IWCP permitting and monitoring services B. City of San Diego February 8, 2021 letter to IWCP permittees C. City of San Diego FY 2020 Estimate for O&M expense for Penasquitos Pump Station D. City of San Diego End of Year Reconciliation for FY 2020 O&M Penasquitos Pump Station E. City of San Diego FY 2021 Estimate for O&M expense for Penasquitos Pump Station Reviewed/ Approved By: wenKaserman Assistant City Manager 3 of20 Reviewed By: Alan Fenstermacher City Attorney
April 20, 2021, Item #14Tbe City of SA IE Public Utilities Department Industrial Wastewater Control Program September 22, 2020 City of Poway Public Works Wastewater Disposal PO Box 789 Poway CA 92074-0789 Dear Terry Zaragoza: Thank you for your agency's participation at the Metro JPA TAC meeting on September 16, 2020, at which we discussed the City of San Diego Public Utilities Department's need to collect payment for your participation in the Industrial Waste Control Program (IWCP). The City of San Diego's IWCP was fonnally approved by the U.S. Environmental Protection Agency on July 1, 1982. Since that time, the IWCP has protected public health and the environment through pennitting, inspections, and extensive monitoring of industries throughout San Diego's metropolitan sewerage system. The program's activities are critical not only to protecting ocean discharge from the Point Loma and South Bay Ocean Outfalls, but are also imperative to ensure the success of the City's Pure Water Program. The IWCP ensures businesses comply with the regulatory requirements pertaining to the City's wastewater collection, treatment and disposal; support wastewater services to the City's industrial, commercial and residential population; and protect source water quality for the Pure Water Program. As discussed at the Metro JPA TAC meeting, the amount owed by City of Poway is $107,890.00 This amount covers the permitting and monitoring services that the IWCP performed consistently, even though we have not billed you annually for these costs. We apologize for this oversight. The total amount covers monitoring fees for Fiscal Years 2017 through 2020. We are requesting payment within the next ninety (90) days. If this presents an issue, please contact me at 858-614-4030 to discuss additional payment options. Sincerely, C~ M~ica ~ /2. Deputy Director, Finance Division Enclosures Cc: Joy Newman, Program Manager, Industrial Wastewater Control Program 4of20 9192 Topaz Way, MS 901 D San Diego, CA 92123-1119 ATTACHMENT A T (858) 654-4100
April 20, 2021, Item #14The City of PO Box 129030 SAN San Diego CA 92112-9030 DI EGQ...}J Return Service Requested CITY OF POWAY PUBLIC WORKS WASTEWATER DISPOSAL ACCOUNTS PAYABLE PO BOX 789 POWAY CA 92074-0789 I I I,, .II ... II,,, I I,,, I I, .. 11 ... 11 .. , I I .. ,II .. , II ... I INVOICE Invoice No: Invoice Date: Business Partner No: Contract Account No: Reference: Invoice Amt(USD): Payment Due: City Contact Name: City Contact Phone No: Description 1000291991 Sep 22, 2020 9000000612 300000000121 XXXXXX2009221036 $ 74,260.00 Dec 22, 2020 BILLING CLERK 858-654-4102 Metropolitan Industrial Wastewater Control Program Pretreatment Program permit administration services for FY 2017 (from 01-Jul-2016 FY 2018 (from 01-Jul-2017 FY 2019 (from 01-Jul-2018 FY 2020 (from 01-Jul-2019 in Participating Agency 20 Poway through through through through 30-Jun-2017) 30-Jun-2018) 30-Jun-2019) 30-Jun-2020) $18,310 $18,645 $17,465 $19,840 See attached for line item reports Invoices that remain unpaid after the due date will be referred to the City Treasurer for collections. Unpaid balances are subject to a collection referral fee of 10% or $25, whichever is greater, up to a maximum of $1,000, and interest. As required by law, you are hereby notified that a negative credit entry reflecting on your credit report may be submitted to a credit reporting agency if the amount is not paid by the due date. Return this Portion with Payment. Make Check Payable to City Treasurer. r New Address or Phone Number? Check this Box and Enter your New Information on Reverse Side MAIL PAYMENT TO: City of San Diego PO Box 129030 San Diego, CA 92112-9030 11,1 .... 1,1 ... 11 ... 11 .. 1,1.1.1.1 Invoice No: Invoice Date: Business Partner No: 1000291991 Sep 22, 2020 9000000612 Contract Account No: 300000000121 Reference: XXXXXX2009221036 Invoice Amount(USD): $ 74,260.00 Payment Due: Dec 22, 2020 0171 1 300000000121 1000291991 7 XXXXXX2009221036 000007426000 1 1 5 of20
April 20, 2021, Item #14FY2017 Permit Services Fees for I Us in Poway --NAME ·. 20-0002 03-A Palomar Pomerado Health 2 3100 11/25/2004 310 20-0020 01-A Poway Unified School District 3 40 12/18/2013 530 20-0033 02-A Toray Membranes USA Inc 2 12408· 11/30/2011 9/30/2018 310 20-0043 06-A Somacis Inc 1 34384 9/16/2016 10/31/2019 2180 20-0108 05-A Valley Metals 1 794.93 5/15/2015 2/29/2020 5280 20-0109 06-A L & T Precision Corporation 1 35 5/8/2017 2180 20-0112 03-A BJ's Rentals Inc 2 360 1/14/2011 195 20-0113 02-A Allstate Van & Storage dba Allstate Moving System 3 1 1/31/2014 2/10/2020 195 20-0122 04-A K-Tube Corporation 1 998 3/21/2016 10/2/2019 2490 20-0147 03-A Teck Cominco Advanced Materials 4C 6/24/2015 1/1/2019 1050 20-0153 03-A Gaines Manufacturing 4C 4/1/2015 4/23/2018 1050 20-0208 02-A Alfa Scientific Designs Inc 2 127 7/1/2015 310 20-0235 02-A Component Surfaces Inc 4C 7/25/2016 5/5/2019 1050 20-0238 OS-A UT; Phillips 66 Company Circle K Station #2966 2 616 11/18/2016 3/28/2018 1180 1\;!IM 6 of20
April 20, 2021, Item #14--rvices Fees for IUs in Poway NAME . 20-0002 03-A Palomar Pomerado Health 2 3100 11/25/2004 310 20-0020 01-A Poway Unified School District 3 40 12/18/2013 530 20-0033 02-A Toray Membranes USA Inc 2 12408 11/30/2011 9/30/2018 310 20-0043 06-A Somacis Inc 1 34384 9/16/2016 10/31/2019 2180 20-0108 05-A Valley Metals 1 794.93 5/15/2015 2/29/2020 5280 20-0109 06-A L & T Precision Corporation 1 35 5/8/2017 2180 20-0112 03-A BJ's Rentals Inc 2 360 1/14/2011 195 20-0113 02-A Allstate Van & Storage dba Allstate Moving Systems 3 1 1/31/2014 2/10/2020 530 20-0122 04-A K-Tube Corporation 1 998 3/21/2016 10/2/2019 2490 20-0147 03-A Teck Cominco Advanced Materials 4C 6/24/2015 1/1/2019 1050 20-0153 04-A Gaines Manufacturing 4C 0 4/24/2018 1050 20-0208 02-A Alfa Scientific Designs Inc 2 127 7/1/2015 310 20-0235 02-A Component Surfaces Inc 4C 7/25/2016 5/5/2019 1050 20-0238 05-A UT; Phillips 66 Company Circle K Station #2966 2 616 11/18/2016 3/28/2018 1180 mm 7 of20
April 20, 2021, Item #14FY2019 .,vices Fees for I Us in Poway . -, NAME --~-· 1111---20-0002 03-A Palomar Pomerado Health 2 3100 11/25/2004 310 20-0020 01-A Poway Unified School District 3 40 12/18/2013 530 20-0033 02-A Toray Membranes USA Inc 2 12408 11/30/2011 9/30/2018 310 20-0043 06-A Somacis Inc 1 34384 9/16/2016 10/31/2019 2180 20-0108 05-A Valley Metals 1 794,93 5/15/2015 2/29/2020 5280 20-0109 06-A L & T Precision Corporation 1 35 5/8/2017 2180 20-0112 03-A BJ's Rentals Inc 2 360 1/14/2011 195 20-0113 02-A Allstate Van & Storage dba Allstate Moving System 3 1 1/31/2014 2/10/2020 530 20-0122 04-A K-Tube Corporation 1 998 3/21/2016 10/2/2019 2490 20-0147 03-A Teck Cominco Advanced Materials 4C 6/24/2015 1/1/2019 1050 20-0153 04-A Gaines Manufacturing 4C 0 4/24/2018 1050 20-0208 02-A Alfa Scientific Designs Inc 2 127 7/1/2015 310 20-0235 02-A Component Surfaces Inc 4C 7/25/2016_ 5/5/2019 1050 WiDJ¼1 8 of20
April 20, 2021, Item #14FY2020 Permit Services Fees for IUs in Poway -· --· 20-0002 03-A Palomar Pomerado Health 2 3100 11/25/2004 310 20-0020 01-A Poway Unified School District 3 40 12/18/2013 530 20-0033 03-A Toray Membranes USA Inc 2 12461 10/1/2018 310 20-0043 07-A Somacis Inc 1 32108 11/1/2019 2180 20-0108 06-A Valley Metals 1 897.26 3/1/2020 5280 20-0109 06-A L & T Precision Corporation 1 35 5/8/2017 2180 20-0112 03-A BJ's Rentals Inc 2 360 1/14/2011 195 20-0113 03-A Allstate Van & Storage dba Allstate M 3 10 2/11/2020 530 20-0122 OS-A K-Tube Corporation 1 911 10/3/2019 2490 20-0147 04-A Teck Advanced Materials Inc 4C 0 1/2/2019 1050 20-0153 04-A Gaines Manufacturing 4C 0 4/24/2018 1050 20-0179 01-A Western Mower & Engine 3 56 3/1/2020 195 20-0208 02-A Alfa Scientific Designs Inc 2 127 7/1/2015 310 20-0235 03-A Component Surfaces Inc 4C 0 5/6/2019 1050 20-0261 01-A UT; Blue Pacific Engineering & Constn 3 451500 12/3/2019 2180 @n[,1 9 of20
April 20, 2021, Item #14The City 0/ PO Box 129030 SAN San Diego CA 92112-9030 DIE GO__}) Return Service Requested CITY OF POWAY PUBLIC WORKS WASTEWATER DISPOSAL ACCOUNTS PAYABLE PO BOX 789 POWAY CA 92074-0789 111, .. I I, .. I I, .. 11 ... 11,,, I I mll,, ,II, .. II .. , I I ... I INVOICE Invoice No: Invoice Date: Business Partner No: Contract Account No: Reference: Invoice Amt(USD): Payment Due: City Contact Name: City Contact Phone No: Description 1000291983 Sep 22, 2020 9000000612 300000000121 XXXXXX2009220930 $ 33,630.00 Dec 22, 2020 BILLING CLERK 858-654-4102 Metropolitan Industrial Wastewater Control Program Routine FY 2018 FY 2019 FY 2020 Monitoring and Laboratory (from 01-Jul-2017 through (from 01-Jul-2018 through (from 01-Jul-2019 through services for 30-Jun-2018) 30-Jun-2019) 30-Jun-2020) $8676 $15,398 $9556 in Participating Agency 20 Poway See attached for line item reports Invoices that remain unpaid after the due date will be referred to the City Treasurer for collections. Unpaid balances are subject to a collection referral fee of 10% or $25, whichever is greater, up to a maximum of $1,000, and interest. As required by law, you are hereby notified that a negative credit entry reflecting on your credit report may be submitted to a credit reporting agency if the amount is not paid by the due date. Return this Portion with Payment. Make Check Payable to City Treasurer. r New Address or Phone Number? Check this Box and Enter your New Information on Reverse Side MAIL PAYMENT TO: City of San Diego PO Box 129030 San Diego, CA 92112-9030 11.1 .... 1.1 •• ,11 ... 11 •• 1.1.1.1,1 Invoice No: Invoice Date: Business Partner No: Contract Account No: 1000291983 Sep 22, 2020 9000000612 300000000121 Re~rence: XXXXXX2009220930 Invoice Amount(USD): $ 33,630.00 Payment Due: Dec 22, 2020 0171 1 300000000121 1000291983 4 XXXXXX2009220930 000003363000 5 1 10 of 20
April 20, 2021, Item #14Th i o/ SAN DIEG Public Utilitie Department fr,, or'Tl nt on, r ,g · Nt1n.t Se ~es 11,s 0r, ar Perrnittee: Potential Upcoming Changes to Industrial User Discharge Permit Fees Thank you for your continued parti ipation in the City of San Diego's (City's) Industrial Wastewater Control Program. Your participation as an industrial user is crucial to ensure that the City1s sewerage system, and the environment, is protected and can meet all of its r gulatory requirements. We value you as a partner in the region and appreciate the opportunity to assist you with your industrial wastewater. We are informing you of potential upcoming changes to the permit fees applicable to all industrial users that discharge to the City's system. On February 21, 1984 the San Diego City Council (City Council) adopted resolution tt:260133 that required permit and monitoring fees for industrial users permitted by the Industrial Wastewater Control Program for discharge to the City's sewerage system. The fees, which were also intended to cover the annual cost of inspections and sampling, have not been up t i . .C~ Since industrial user fees have not been updated in almost 40 years, the current fee structure for permitting, inspections, and monitoring does not adequately recover these costs as required. We conducted an independent analysis to evaluate our program costs and related fees over the last 5 years and will soon bring forward proposed changes to the City Council for consideration. We anticipate that the proposed fee changes will be heard at City Council's Environment Committee on February 25, 2021. The public hearing information will be posted just prior to the Committee meeting at: http __ :J/wwy.;. a · gQ.,gQY/ u il-c u1mittee nviro_omen -ommi te._e. I have attached a copy of the independent analysis that will be presented at the Committee for you to review. We encourage you to review the information provided and reach out to me at (858) 654-4106 if you have any questions or concerns. yR • rogram Manager Public UtiUties Department JN:rnd ctll t), 1/·1.,~ .. ~)~ '. ,.,, J -I ! ~: l ) .. ,rt\ ) t,; i ., ! \ ndt () ov 11 of 20 ATTACHMENT B
April 20, 2021, Item #14Public Utilities Department Finance and Information Technology Division March 6, 2019 Mr. Michael Obermiller, P.E. Director of Public Works City of Poway P.O. Box 789 Poway, CA 92074-0789 Dear Mr. Obermiller: Subject: Fiscal Year 2020 estimate of Operations and Maintenance (O&M) expense for Penasquitos Pump Station The First Amended Penasquitos Sewer District Sewage Disposal Agreement of 1971 (R-212472) requires San Diego to notify Poway of the estimated amount of O&M expenses for the ensuing fiscal year. Enclosed is the Fiscal Year 2020 (FY20) estimate for O&M expense allocation of Penasquitos Pump Station. As a reminder, we are basing the estimate on actual past expenditures. The following are assumptions used to calculate estimated expenses for FY20: • Average of actual expenses for Fiscal Years 2016 and 2018; • Overhead rate of 146.3% based on City of San Diego's Overhead FY19 Rate Summary for PUD; • Estimated flow is a 2 year-average (even years) of Fiscal Years 2016 & 2018; • There are no anticipated CIP expenses for FY20. Based on Poway's percentage of flow to Penasquitos Pump Station, the total estimated cost for FY20 is $378,192.00, payable in four quarterly installments of $94,547.92. When actual expenditures for FY20 have been audited, reconciliation will be completed. If you have any questions, please contact Fawn Chang-Lee at (858) 614-5779. Sincerely, ~ Ed r Patifio Supervising Management Analyst EP:hh:fcl 9192 Topaz Way, MS 901 San Diego, CA 9212312 Of 20 ATTACHMENT C r (858) 614-5779 fchangfee@sandiego.gov
April 20, 2021, Item #14Page 2 Michael Obermiller March 6, 2019 Enclosure: Penasquitos Sewerage System Fiscal Year 2019 O&M Estimate cc: Rudy Guzman, Assistant Director of Public Works for Utilities, City of Poway Jessica Parks, Senior Management Analyst, City of Poway Kathy Makepeace, Senior Administrative Assistant, City of Poway G:\agencies\muni\FY20\Poway estimate ltr-FY20.docx 13 of 20
April 20, 2021, Item #14COST CATEGORY PERSONNEL COST FRINGE BENEFITS SUPPLIES CONTRACTS IT EXPENSES OTHER EXPENSES ENERGY & UTILITIES CAPITAL EXPENDITURE SUBTOTAL OVERHEAD* PUMP STATION TOTAL COST FLOW PER PUMP STATION (MGt* CITY OF SAN DIEGO PENASQUITOS SEWERAGE SYSTEM Pump Stations 64, 65, and Penasquitos FY 2020 Operations & Maintenance (O&M) Estimate for the City of Poway FY 2020 Estimated Operations & Maintenance Costs PUMP ST A TION 64 PUMP ST A TION 65 PENASQUITOS PS $15,761 $15,321 '; $50,235 $278,226 $1,285 $18 $439,571 $50,329 $850,745 $23,059 $873,804 2,035 *Used overhead rate of 146.3% for PUD from City of San Diego's FY19 Rate Summary. **All flow from PS 65 flows through PS 64; therefore, it is not included in the total. 14 of 20 G:\agencies\muni\FY20\FY20 Estimate POWAY FLOW (MG) THRU PQ PS % OF PQ PS FLOW COST ESTIMATED QUARTERLY PAYMENT 880.78 43.28% $378,192 $94,547.92 TOTAL
April 20, 2021, Item #14SAN DIEG& Public Utilities Department Finance and Information Technology Division February 10, 2021 Eric Heidemann Director of Public Works City of Poway P.O. Box 789 Poway, CA 92074-0789 Dear Mr. Heidemann: Reference: Penasquitos Sewerage System Operation & Maintenance ( O&M) Expense FY 2020 End of Year Reconciliation Enclosed is an invoice in the amount of $121,948.77 for Fiscal Year 2020 end of year reconciliation of operation and maintenance (O&M) expenses for Penasquitos Pump Station. If you have any questions on this matter, please contact Fawn Chang-Lee at (858) 614-5779. Sincerely, Edgar X. Patino Supervising Management Analyst EXP:gp:fcl Enclosures: 1. FY2020 End of Year Reconciliation 2. Expenditures Backup 3. FY20 EOY Invoice cc: Troy DePriest, Assistant Director of Public Works, City of Poway Jessica Parks, Utilities Administrator, City of Poway Terry Zaragoza, Wastewater Utilities Supervisor, City of Poway Angelina Martinez, Management Analyst, City of Poway Kathy Clancy, Senior Administrative Assistant, City of Poway G:\agencies\muni\FY20\FY20 EOY\Poway\Invoice letter Poway FY20 EOY.docx 9192 Topaz Way, MS 901 San Diego, CA 92123 15 of 20 ATTACHMENT D T (858) 614-5779 fchanglee@sandiego.gov
April 20, 2021, Item #14The City of PO Box 129030 INVOICE SAN~ DIEGO]J San Diego CA 92112-9030 Return Service Requested CITY OF POWAY -DIRECTOR OF PUBLIC WORKS PO BOX 789 POWAY CA 92064 I I I 111 I I 111 II 1111 I 111 I I 111Il1111I111II11111 m I I 111 I SAP Invoice No: Invoice Date: Business Partner No: Contract Account No: Reference: Invoice Amt(USD): Payment Due: City Contact Name: City Contact Phone No: 1000299851 Feb 10, 2021 9000000612 500000001915 XXXXXX2102100602 $ 121,948.77 Mar 16, 2021 FAWN CHANG-LEE 858-614-5779 · t>:escription , .· .. Penasquitos Sewerage·system Operating & Maintenance (O&M) Expenses FY 2020 Reconciliation Invoices that remain unpaid after the due date will be referred to the City Treasurer for collections. Unpaid balances are subject to a collection referral fee of 10% or $25, whichever is greater, up to a maximum of $1,000, and interest. As required by law, you are hereby notified that a negative credit entry reflecting on your credit report may be submitted to a credit reporting agency if the amount is not paid by the due date. Return this Portion with Payment. Make Check Payable to City Treasurer. · n New Address or Phone Number? Check this Box and Enter your New Information on Reverse Side MAIL PAYMENT TO: City of San Diego PO Box 129030 San Diego, CA 92112-9030 II, I,,,, I, I,, ,I I,, ,I I,, I, 1,1, l,I SAP Invoice No: Invoice Date: Business Partner No: Contract Account No: 1000299851 Feb 10, 2021 9000000612 500000001915 Reference: XXXXXX2102100602 Invoice Amount(USD): $ 121,948.77 Payment Due: Mar 16, 2021 16 of 20 0171 1 500000001915 1000299851 5 XXXXXX2102100602 000012194877 2 1
April 20, 2021, Item #14CITY OF SAN DIEGO PENASQUITOS SEWERAGE SYSTEM Pump Stations 64, 65, and Penasquitos PS FY 2020 Operations & Maintenance End of Year Reconciliation for the City of Poway FY 2020 Actual Operations & Maintenance Costs COST CATEGORY PUMP STATION 64 PUMP STATION 65 PENASQUITOS PS PERSONNEL COST 21,214 FRINGE BENEFITS 20,645 SUPPLIES 153,368 CONTRACTS 355,801 IT EXPENSES 637 OTHER EXPENSES 0 ENERGY & UTILITIES 440,496 CAPITAL EXPENDITURE 7,967 CIP (PS 65 Upgrade; replacement portion 60.5% of total project cost) 0 SUBTOTAL 1,000,128 OVERHEAD 31,567 PUMP STATION TOTAL COST 1,031,695 FLOW PER PS 2,147 POWAY FLOW (MG) THRU PQ PS 1,040.84 % OF PENASQUITOS PS FLOW 48.48% TOTAL COST $500,140.45 PAID $378 191.68 BALANCE $121,948.77 17 of 20 TOTAL
April 20, 2021, Item #14Public Utilities Department Finance and Information Technology Division June 18, 2020 Eric Heidemann Director of Public Works City of Poway P.O. Box 789 Poway, CA 92074-0789 Dear Mr. Heidemann: Subject: Fiscal Year 2021 estimate of Operations and Maintenance (O&M) expense for Penasquitos Pump Station The First Amended Penasquitos Sewer District Sewage Disposal Agreement of 1971 (R-212472) requires San Diego to notify Poway of the estimated amount of O&M expenses for the ensuing fiscal year. Enclosed is the Fiscal Year 2021 (FY21) estimate for O&M expense allocation of Penasquitos Pump Station. As a reminder, we are basing the estimate on actual past expenditures. The following are assumptions used to calculate estimated expenses for FY21: • Average of actual expenses for Fiscal Years 20161 2017 and 2018; • Overhead rate of 148.8% based on City of San Diego's Overhead FY20 Rate Summary for Public Utilities Department; • Estimated flow is a 3 year-average of Fiscal Years 20161 2017 and 2018; • There are no anticipated CIP expenses for FY21. Based on Poway' s percentage of flow to Penasquitos Pump Station, the total estimated cost for FY21 is $407,265 payable in four quarterly installments of $101,816.13. When actual expenditures for FY20 have been audited, reconciliation will be completed. If you have any questions, please contact Fawn Chang-Lee at (858) 614-5779. Sincerely, Edgar Patifio Supervising Management Analyst EXP:gp:fcl 9192 Topaz Way, MS 901 San Diego, CA 9212318 of 20 ATTACHMENT E T (858) 614-5779 fchanglee@sandiego.gov
April 20, 2021, Item #14Page 2 Eric Heidemann June 15, 2020 Enclosure: Penasquitos Sewerage System Fiscal Year 2021 O&M Estimate cc: Troy DePriest, Assistant Director of Public Works, City of Poway Jessica Parks, Utilities Administrator, City of Poway Terry Zaragoza, Wastewater Utilities Supervisor, City of Poway Kathy Clancy, Senior Administrative Assistant, City of Poway G:\agencies\muni\FY21\Poway estimate ltr-FY21.docx 19 of 20
April 20, 2021, Item #14COST CATEGORY PERSONNEL COST FRINGE BENEFITS SUPPLIES CONTRACTS IT EXPENSES OTHER EXPENSES ENERGY & UTILITIES CAPITAL EXPENSES CIP SUBTOTAL OVERHEAD* PUMP STATION TOTAL COST CITY OF SAN DIEGO PENASQUITOS SEWERAGE SYSTEM Pump Stations 64, 65, and Penasquitos FY 2021 Operations & Maintenance (O&M) Estimate for the City of Poway FY 2021 Estimated Operations & Maintenance Costs PUMP STATION 64 PUMP STATION 65 PENASQUITOS PS ,·. $15,740 -·. $14,182 ,. . . $59,664 $303,924 $1,474 , $14 ... $460,485 .· $40,526 $0 •.•· $896,009 --$23,421 ·. $919,430 FLOW PER PUMP STATION (MG)° 2,063 *Used overhead rate of 148.8% for PUD from City of San Diego's FY20 Rate Summary. **All flow from PS 65 flows through PS 64; therefore, it is not included in the total. POWAY FLOW (MG) THRU PQ PS % OF PQ PS FLOW COST ESTIMATED QUARTERLY PAYMENT 20 of 20 G:\agencies\muni\FY21\FY21 Estimate 913.90 44.30% $407,265 $101,816.13 TOTAL : .. ··'