HomeMy WebLinkAboutSewer Lateral Repair and Maintenance Program - Appropriate $Council/Agency Meeting Held: �j -�v 220
Deferred/Continued to:
Approved ❑Condition I A r v d ❑ D nied
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City C r 's S' natur
Council Meeting Date: 7/6/2009
Department ID umber: PW 09-30
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY CO IL MEMBERS
SUBMITTED BY: FRED A. WILSON, CITY ADMINIS R
- BLI PREPARED BY: TRAVIS K. HOPKINS, PE, DIRECTO F C WOF , S
SUBJECT: Appropriate Additional Funds for the Sewer Lateral Program
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: A sewer lateral program was added to the sewer service maintenance
business unit (51185201) effective January 3, 2008. The estimated annual cost was
determined to be $1,400,000 and this amount was added to the FY 2008/09 budget.
However, this amont has been expended through the first eight months of the fiscal year and
an additional appropriation of funds is needed to continue the program.
Funding Source: Unappropriated Sewer Service Fund (511) Balance
Recommended Action: Motion to:
Appropriate $500,000 from the Sewer Service Fund (511) unappropriated fund balance to
general ledger account 51185201.67730 (Sewer Lateral Maintenance).
Alternative Action(s):
Do not appropriate additional funds. This action would require suspension of the Sewer
Lateral Program after expenditure of $1.4 million, which equates to the annual revenue for
this component of the sewer program.
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 7/6/2009 DEPARTMENT ID NUMBER: PW 09-30
Analysis: In November 2007, after public notification and a public hearing, the City Council
approved a sewer service charge adjustment to include a new sewer lateral repair and
maintenance program. Effective January 2008, the City, rather than the property owner, has
been responsible for the portion of all sewer laterals from the City -owned sewer main
through the public right-of-way to the private property line. The monthly sewer service charge
was increased 20%, generating approximately $1.4 million in additional funds to cover the
estimated cost of the program. In preparing the FY 2008/09 budget, staff used this figure for
Sewer Lateral Program expenditures.
As word of the Sewer Lateral Program spread, the Utilities Division experienced a dramatic
increase in resident participation. It became evident after the first half of the current fiscal
year that additional funds would be needed to respond to all customer requests. The Public
Works Director was able to transfer $375,000 into the program by deferring budgeted capital
sewer line replacements. However, through the end of May, nearly $1.4 million, or the
originally estimated program budget, had been expended. To maintain the current level of
customer service through the fiscal year, additional appropriation of $500,000 from the
Sewer Service Fund is required.
The Sewer Lateral Program operation currently is under review to determine potential
solutions to the funding and repair demands. Adjusting the monthly charge to cover the
increased annual demand or developing a waiting list of resident requests, are options to
explore over the summer. Further analysis is necessary to determine the anticipated work
load over the next year and into the future. The contracted service will be examined to
ensure that quality service is performed at the lowest cost to the city.
Public Works Commission Action: Not required.
Strategic Plan Goal: Maintain, improve and obtain funding for public improvements.
Environmental Status: Not applicable.
Attachment(s):
-2- 6/23/2009 5:46 PM
ATTACHMENT #1
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICATION
FINANCE DEPARTMENT
TO: FRED A. WILSON, CITY ADMINISTRATOR
FROM: BOB WINGENROTH, DIRECTOR OF FINANCE 1 na
SUBJECT: FIS 2008-09-19 APPROPRIATE ADDITIONAL FUNDS FOR SEWER
LATERAL PROGRAM
DATE: JUNE 22, 2009
As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Appropriate
Additional funds for Sewer Lateral Program."
If the City Council approves this action, the available working capital of the Sewer Service Fund
will be reduced to $4,872,000.
BW/rs
INITIATING DEPARTMENT: Public Works
SUBJECT: Appropriate Additional Funds for the Sewer Lateral
Program
COUNCIL MEETING DATE: July 6, 2009
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Attached
❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Attached
❑
Not Applicable
Tract Map, Location Map and/or other Exhibits
Attached
❑
Not Applicable
Contract/Agreement (w/exhibits if applicable)
Attached
❑
(Signed in full by the City Attorney)
Not Applicable
Subleases, Third Party Agreements, etc.
Attached
❑
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Attached
❑
Not Applicable
Fiscal impact Statement (Unbudgeted, over $5,000)
Attached
Not Applicable
❑
Bonds (If applicable)
tached
E]
Ntot Applicable
Staff Report (If applicable)
El
NoAttached
Applicable
Commission, Board or Committee Report (If applicable)
Attached
❑
Not Applicable
IN
Findings/Conditions for Approval and/or Denial
Attached
❑
Not Applicable
EXPLANATION
REVIEWED
RETURNED
FOR RDED
Administrative Staff
( )
( )
Deputy City Administrator (Initial)
( )
( )
City Administrator (Initial)
( )
( )
City Clerk
( )
EXPLANATION FOR RETURN OF ITEM: C oal �ec,�ead arwt s=s re:.� C•1 -
• •, •ly
RCA Author: Ken Dills