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Home My WebLink About2012-2013 West Orange County Water Board Annual Budget approCouncil/Agency Meeting Held: ed/Continued to: ❑ Conditionally Approved ❑ Denied VApproved =City Clerk's Signatur Council Meeting Date: June 18, 2012 Department ID Number: PW 12-029 E0 -ff is]ZVOI I M40111101 IR ` SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Travis K. Hopkins, PE, Director of Public Works SUBJECT: Approve the West Orange County Water Board (WOCWB) proposed budget for Fiscal Year 2012-2013, with the City of Huntington Beach share in the amount of $105,848 Statement of Issue: The individual member agencies of the West Orange County Water Board (WOCWB) must approve the proposed budget annually prior to the beginning of the new fiscal year. Financial Impact: The City's share, $105,848 of the Fiscal Year 2012-2013 WOCWB will be included as a line item expenditure in the Water Fund (506) Fiscal Year 2012/13 budget submittal under Account No. 50685801.67655. Recommended Action: Motion to: Approve the Fiscal Year 2012-2013 West Orange County Water Board proposed budget in the amount of $189,577, with the Huntington Beach share in the amount of $105,848. Alternative Action(s): Do not approve the budget and direct staff accordingly. Analysis: The West Orange County Water Board (WOCWB) is a Joint Powers Agreement between the Cities of Garden Grove, Seal Beach, Westminster and Huntington Beach, for the purpose of purchasing water from the Metropolitan Water District of Orange County, and transporting it via Feeders No. 1 and No. 2, owned by the Joint Powers cities. Huntington Beach owns 56.1 percent of the system. The WOCWB is governed by five elected officials from each of the Joint Powers agencies. City Council Members Joe Carchio and Joe Shaw represent the City of Huntington Beach on the Board. The General Manager of WOCWB submits a proposed budget to the Board annually prior to the new fiscal year for the Board's review and approval. Huntington Beach Utilities Division staff have reviewed and provided input to the proposed budget. The total proposed budget for Fiscal Year 2012-2013 is $189,577; the City of Huntington Beach share is $105,848. This amount includes funding for general operations and maintenance, electricity, administrative costs (legal, insurance, audit fees), as well as capital costs. A line item budget is attached. HB -55- Item 7. - I REQUEST FOR COUNCIL ACTION MEETING DATE: 6/18/2012 DEPARTMENT ID NUMBER: PW 12-029 Public Works Commission Action: Not applicable Environmental Status: Not applicable Strategic Plan Goal: Improve the City's infrastructure Attachment(s): Item 7. - 2 HB -56- EATTACHMENT HB -57- Item 7. - 3 FIR WEST ORANGE CC, �NTY WATER BOARD PROPOSED FISCAL YEAR 2012-2013 BUDGET EXPENDITURES: Actual FY 10/11 Budget FY11/12 Estimated FY 11/12 Total Requested FY 12/13 OPERATING EXPENSE Utilities Expenses, Electricity $4,830 $4,000 $4,000 $4,000 HB O&M and GM $21,323 $60,000 $60,000 $60,000 Audit Fees $3,894 $3,500 $5,000 $5,000 Contractual Services, Legal $1,829 $3,000 $2,500 $3,000 Meeting, Board Members $1,600 $2,000 $1,800 $2,000 Liability Ins., Transmission Lines $8,739 $8,000 $7,500 $8,000 Other Contract Services $9,635 $2,000 $3,000 $2,500 Total Operating Expense $51,850 $82,500 $83,800 $84,500 CAPITAL COSTS Rebuild Two Isolation Valves OC-35 $35,000 Rebuild Two Isolation Valves OC-9 (Dale & Katella) $20,000 Replace Two OC-9 Line Valves $50,000 Replace Air Vacs + One OC-9 Line Valve (Between Dale & Katella/Heil & Edinger) $84,000 $84,000 Meter Change Out -Phase I and II $46,021 Total Capital Costs $46,021 $84,000 $84,000 $105,000 GROSS PROGRAM COST $97,871 $166,500 $167,800 $189,500 Funded by Reserves NET PROGRAM COST ($7,664) $90,207 $20,544 $145,956 $22,469 $145,331 ($77) $189,577 REVENUE: Huntington Beach - 56.1 % $49,933 $81,040 $81,040 $105,848 Garden Grove - 4.2% $3,738 $6,067 $6,067 $7,924 Seal Beach - 14.3% $12,728 $20,657 $20,657 $26,981 Westminster - 25.4% $22,608 $36,692 $36,692 $47,924 Subtotal $89,007 $144,456 $144,456 $188,677 Interest on Reserves $1,200 $1,500 $875 $900 Other Revenue TOTAL REVENUE $90,207 $145,956 $145,331 $189,577 t� IF WEST ORANGE COUivTY WATER BOARD PROPOSED FISCAL YEAR 2012-13 BUDGET AGENCY ALLOCATION SUMMMARY Program Interest on Proposed 12/13 Funding from Cash and Gross Program Recommended Reserves and Recommended 12/13 Net AGENCY Cost Reserves Other Revenue Reserves Funding Huntington Beach - 56.1% $106,310 $168,300 $43 $505 $105,848 Garden Grove - 4.2% $7,959 $12,600 $3 $38 $7,924 Seal Beach - 14.3% $27,099 $42,900 $11 $129 $26,981 Westminster - 25.4% $48,133 $76,200 $20 $229 $47,924 Totals 1 $189,500 $300,000 $77 $900 $188,677 Total Funds 9/30/11 (unaudited) $299,923 Less Projected Expenditures -$189,500 Recommended Reserves $300,000 Total Contributions 12/13 $189,577 4/12/2012 0 WEST ORANGE CCU' 'NTY WATER BOARD PROPOSED FISCAL YEAR 2012-13 BUDGET Huntington Garden Seal Beach Westminster EXPENDITURES BY MEMBER: FY 12/13 Beach 56.1% Grove 4.2% 14.3% 25.4% OPERATING EXPENSE Utilities Expenses, Electricity $4,000 $2,244 $168 $572 $1,016 HB O&M and GM $60,000 $33,660 $2,520 $8,580 $15,240 Audit Fees $5,000 $2,805 $210 $715 $1,270 Contractual Services, Legal $3,000 $1,683 $126 $429 $762 Meeting, Board Members $2,000 $1,122 $84 $286 $508 Liability Ins., Transmission Lines $8,000 $4,488 $336 $1,144 $2,032 Other Contract Services $2,500 $1,403 $105 $358 $635 Total Operating Expense $84,500 $47,405 $3,549 $12,084 $21,463 Total Capital Costs $105,000 $58,905 $4,410 $15,015 $26,670 Funded by reserves GROSS PROGRAM COST ($77) $189,500 ($43) $106,310 ($3) $7,959 ($11) $27,099 ($20) $48,133 NET PROGRAM COST $189,577 $106,353 $7,962 $27,110 $48,153