HomeMy WebLinkAboutCC RESO 92-31RESOLUTION NO. 92-31
RESOLUTION OF SUPPORT OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
FOR ESTABLISHMENT OF THE SAN DIEGO AREA
WASTEWATER MANAGEMENT DISTRICT (SAD)
WHEREAS, the Clean Water Program Governance Advisory Group was
established by the Cities of National City, Chula Vista, Coronado, Del Mar, El
Cajon, Imperial Beach, La Mesa, Lemon Grove, Poway, San Diego, the County of
San Diego, the San Diego County Water Authority, the Otay Water District, and the
Padre Dam Municipal Water District to advise the respective legislative bodies of the
members concerning the appropriate entity for the management and organization
needed to implement the Greater San Diego Clean Water Program, with due consider-
ation 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; and
WHEREAS, on January 15, 1991, the National City City Council
authorized its Governance Advisory Group representative on behalf of the City, to
support 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
Continued on Page Two
Resolution No. 9 2- 31
Page 2 of 3
Otay Valley Pipelines
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 Manage-
ment 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 points
of interest (.05 %) 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 interest (.075 %) on identical financing options, possibly amount to $37.5
to $75 million in interest savings on the borrowing program; and (c) 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 save up to twenty basis points
(.2%), possibly amounting to $100 to $200 million in additional costs; and
Continued on Page Three
Resolution No. 92-31
Page 3 of 3
WHEREAS, the current operating agreements between the City of San
Diego and the Metropolitan Sewerage System
do not provide
the participating agencies with a meaningful me hod of cipatinvoic ng agencles 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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of National City that the passage and implementation of the document known as
Senate Bill 1225 is in the best interest of the customers of the Metropolitan Sewerage
System by creating a regional organization and governance structure for the
Metropolitan Sewerage System to provide the best public service at least cost.
PASSED and ADOPTED this 3rd day of March, 1992.
ATTEST:
Lori Anne Peoples
City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
George H. Waters, Mayor