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Item 9 - Agreement with City of S.D. and Poway Payment Schedule for Pump Sta 64 Improvement Costs AGENDA REPORT SUMMARY TO: Honorable ,,ayor and Members of the City Council FROM: James L. Bowersox, City ManaS~;~ INIIIAIED BY: dohn O. Fitch, Assistant City Manager Peggy Stewart, Director of Administrat~v~-~) Services DATE: February 21, 1995 SUBJECT: Agreement with the City of San Diego and the City of Poway to a Payment Schedule for Pump Station 64 Improvement Costs ABSTRACT In 1986 the City of San Diego began a series of construction projects to improve the reliability and capacity of Pump Station 64. The City of Poway and the City of San Diego entered into the Penasquitos sewerage system agreement which requires the City of Poway to pay certain costs for operation and maintenance and new construction. Under these agreements the City of Poway recognizes it is responsible to pay their fair share of improvement costs at Pump Station 64. Following several months of analysis of costs, Poway city staff have arrived at an acceptable amount representing the fair share costs. Poway's share of the costs total $1,350,373. ENVIRONMENTAL REVIEW This action is not subject to CEQA review. FISCAL IMPACT The City of Poway is obligated to pay its fair share of the Pump Station 64 improvement costs. The total cost of the improvement program was $22.2 million dollars. Poway's share is $1,350,373. Poway will pay the City of San Diego $615,000 on July 1, 1995 and $245,124 plus interest on the unpaid balance for the next three consecutive years. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCF Milon Mills, Jr., Water Utilities Director, City of San Diego RECOMMENDATION It is recommended th~ the City Council of the City of Poway approve the repayment of Pump Station 64 improvement costs totaling $1,350,373 which are included in the current monthly sewer rates. ACTION i OF 5 IrEB 2 i 1995 ITEM 9 Agenda Report - Agreement with the City of San Diego and Poway to a Payment Schedule for Pump Station 6Y+ Improvement Costs February 21, 1995 Page ~ $245,124 plus interest on the unpaid balance due and payable on July 1 each year after I995. These costs have been anticipated in the current sewer rate case and are being collected through monthly service charges. Staff recommends acceptance of the payment schedule for the Pump Station 64 improvement costs. ENVIRONMENTAL REVIEW This action is not subject to CEQA review. FISCAL IMPACT The City of Poway is obligated to pay its fair share of the Pump Station 64 improvement costs. Total cost of the improvement program was $22.2 million dollars. Poway's share is $1,350,373. Poway will pay the City of San Diego $615,000 on July I, 1995 and $245,124 plus interest on the unpaid balance for the next three consecutive years. - ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCF Milon Mills, Jr., Water Utilities Director, City of San Diego RECOMMENDATION It is recommended that the City Council of the City of Poway approve the repayment of Pump Station 64 improvement costs totaling $1,350,373 which are included in the current monthly sewer rates. JLB:JDF:MSW:PS:mh Attachment 1 - Letter of Acceptance from City of San Diego 30F 5 FEB 2 ! 1995 ITEM 9 DIEGO CITY ADMINISTRATION BUILDING ~ 202 C Slr¢¢t · S.4N DIEGO, CALIFORNL'I Mail Station 9CAB WATER UTILITIES D~ARTMENT R E C E / (S19) ~6-'61~ August 19, 1994 Peggy Stewart Director of Administrative Services City of Poway P.O. Box 789 Poway, CA 92074 Dear Ms. Stewart, Subject: Payment of Pump Station 64 Charges We have received your letter dated 7/29/94 in which you outlined a payment schedule for Poway's portion of the Pump Station 64 construction expenses. We have reviewed your proposal and found it to be acceptable. Invoices shall be issued for the agreed to amounts thirty days prior to the due date. The payment amounts and due dates are as follows: July 1, 1995 $615,000 July 1, 1996 $245,124, plus interest on unpaid balance July 1, 1997 $245,124, plus interest on unpaid balance July 1, 1998 $245,125, plus interest on unpaid balance The city of San Diego shall calculate the amount of interest accrued on the unpaid balance. The interest rate shall be based on the precedinq twelve month average rate of the Local Agency Investment Fund. Your city's concurrence with this arrangement can be made by returning a copy of this letter with the signature by the appropriate official of your city. In closing, I wish to thank you for your cooperation in bringing this matter to a speedy resolution, and I look forward to continuing to work with the City of Poway on projects which are mutually beneficial to our communities. If you have any questions, Attachment I ' EB211995 ITEM 9 Ms. Peggy Stewart -2- August 19, 1994 please don't hesitate to call me or Holly Pidone of my staff at 533-41,16. _. ~ .-. r. Sincerely, ..... :....~-- MILON MILLS, JR. Water Utilities Director On behalf of the City of Poway, I accept the payment terms contained in this letter. BY Signature Print Title SG/H~ cc: Mark Weston, City of Poway Randy Williams, city of Poway Assistant Water Utilities Director Deputy Water Utilities Director, Services Division Deputy Water Utilities Director, Engineering Division Financial Services Supervisor Senior Civil Javier Saunders Associate_Civil Engineer Hans Torabi Water Utilities Contracts Administrator Water Utilities Asst. Contracts Administrator Revenue Analyst 50F 5 FEE) g 1 1995 ITEM 9