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
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FEE) g 1 1995 ITEM 9