HomeMy WebLinkAboutApprove the West Orange County Water Board (WOCWB) Proposed (17) City of Huntington Beach
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File #: 20-1537 MEETING DATE: 5/4/2020
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Tom Herbel, P.E., Acting Director of Public Works
Subiect:
Approve the West Orange County Water Board (WOCWB) proposed budget for Fiscal Year
2020/21, with the City of Huntington Beach amount of $1,048,936
Statement of Issue:
The City is a member of the West Orange County Water Board (WOCWB), a Joint Powers Authority.
The individual member agencies of the WOCWB need to approve the proposed WOCWB budget for
Fiscal Year 2020/21 prior to the beginning of the new fiscal year.
Financial Impact:
The City's share of the WOCWB's FY 2020/21 total proposed budget of$1,649,000 is $1,048,936.
This amount is made up of$69,564 for the annual operating budget, $418,372 for the City's share of
the loan repayment for the OC-35 Pipeline Relocation Project, and $561,000 for the Cathodic
Protection Program (CP). The FY 2020/21 proposed operating budget is included in the Water Fund
business unit 50685801, the debt service is included in the Water Master Plan business unit
50785201, and the Cathodic Protection Program project is included in the Water Master Plan
business unit 50790016.
Recommended Action:
Approve the WOCWB proposed budget for Fiscal Year 2020/21, with the City of Huntington Beach
amount of $1,048,936.
Alternative Action(s):
Do not approve the FY 2020/21 WOCWB proposed budget and direct staff accordingly.
Analysis:
The WOCWB is a Joint Powers Authority comprised of the cities of Garden Grove, Seal Beach,
Westminster and Huntington Beach, for the purpose of purchasing water from the Municipal Water
District of Orange County, and transporting it via the OC-9 and OC-35 transmission mains, owned by
the Joint Powers cities. Huntington Beach owns 56.1 percent of the system. The WOCWB is
governed by five elected officials, one each from the cities of Garden Grove, Seal Beach and
City of Huntington Beach Page 1 of 3 Printed on 4/30/2020
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File #: 20-1537 MEETING DATE: 5/4/2020
Westminster, and two from the City of Huntington Beach. Council Members Kim Carr and Jill Hardy
represent the City of Huntington Beach.
The General Manager of the WOCWB (the City of Huntington Beach Public Works Utilities Manager)
submits a proposed budget to the Board for review in January, and for approval by the Board in May
after all member agencies' Council have approved their share of the budget. The total proposed
budget for Fiscal Year 2020/21 is $1,649,000. This includes $124,000 for the operating budget which
includes maintenance, electricity, administrative costs (legal, insurance, audit fees); $525,000 in debt
service for the OC-35 realignment project reimbursement agreement with OCTA, and $1,000,000 for
the Cathodic Protection project.
At the January 15, 2020 regular WOCWB meeting, staff presented preliminary estimates of options to
extend the lifespan of both the OC-9 and OC-35 transmission mains. OC-9 is 64 years old and OC-
35 is 56 years old. Following the Board meeting, each Agency's Public Works Director or
representative attended two meetings with City of Huntington Beach engineering staff and the
WOCWB General Manager to review the options and associated costs. All were in agreement that
the most cost effective solution would be to move forward with the installation of a Cathodic
Protection system.
Staff estimates that OC-9 will cost $3.8 million to apply CP and OC-35 would cost $4.2 million for CP.
Due to these costs, staff is recommending that the Member Agencies make an annual payment to a
special fund over an eight-year period in order to finance both projects. The Board would accumulate
funds for OC-9 based on agency share for the first four years, with design to begin in year three and
construction in year four. Likewise, the Board would accumulate funds for OC-35 in years five
through eight, with design in year seven and construction in year eight. A special board meeting was
held on March 18, 2020, to discuss the recommendations. An attached table shows the annual
allocation of costs broken out by Agency.
The total Fiscal Year 20/21 proposed budget, including regular Operations and Maintenance,
Cathodic Protection and Debt Service on the OC-35 relocation project is $1,649,000; with the
Huntington Beach share of $1,048,936.
The Board reviewed the proposed budget at the March 18, 2020 special meeting and approved a
motion to recommend approval of each agency's share at their next respective City Council
meetings.
Environmental Status:
Not Applicable
Strategic Plan Goal:
Enhance and maintain infrastructure
Attachment(s):
1. West Orange County Water Board Draft Fiscal Year 2020/21 Budget
2. WOCWB Fiscal Year 20/21 Allocation of Costs by Agency
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File #: 20-1537 MEETING DATE: 5/4/2020
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FISCAL YEAR 2020-21 BUDGET
ALLOCATION OF COSTS BY AGENCY
Operating Budget
ACCOUNT NUMBER AGENCY OWNERSHIP FY 20/21 Cost
PERENTAGE
50800508.46610 Huntington Beach 56.1 $69,564
50800508.46620 Garden Grove 4.2 $5,208
50800508.46630 Seal Beach 14.3 $17,732
50800508.46640 Westminster 25.4 $31,496
Totals 100.0 $124,000
First Year Cathodic Protection
50800508.46610 Huntington Beach 56.1 $561,000
50800508.46620 Garden Grove 4.2 $42,000
50800508.46630 Seal Beach 14.3 $143,000
50800508.46640 Westminster 25.4 $254,000
Totals 100.0 $1,000,000
Fourth Year OC-35 Relocation Project Loan Payment
50800508.46610 Huntington Beach 56.1 $418,372
50800508.46620 Garden Grove* 4.2 $0
50800508.46630 Seal Beach 14.3 $106,628
50800508.46640 Westminster 25.4 $0
Totals 100.0 $525,000
*Garden Grove and Westminster have paid off their portions of the loan
Total Proposed Budget
50800508.46610 Huntington Beach 56.1 $1,048,936
50800508.46620 Garden Grove* 4.2 $47,208
50800508.46630 Seal Beach 14.3 $267,360
50800508.46640 Westminster 25.4 $285,496
Total Budget $1,649,000
Total Proposed Budget $1,649,000
March 24, 2020 85
WEST ORANGE COUNTY WATER BOARD
DRAFT FISCAL YEAR 2020-21 BUDGET
FY 19-20 FY 20-21
Approved Proposed
ACCOUNT NUMBER ACCOUNT DESCRIPTION
OPERATING EXPENSES
50885101.61200 Electricity $4,500 $4,500
50885101.64620 Contracts for Repairs and Maintenance $50,000 $40,000
PLC Design for SCADA $25,000 $25,000
Vault(2) Refurbishment $20,000 $30,000
50885101.69345 Auditing $5,500 $5,500
50885101.69375 Attorney Fees $2,500 $2,500
50885101.69365 Other Contract Services $2,000 $2,000
50885101.73010 General/Liability Insurance $9,500 $9,500
50885101.75400 Board Stipend Expense $2,500 $2,500
50885101.79100 Contingency $2,500 $2,500
50885101.82100 Cathodic Protection $0 $1,000,000
OPERATING EXPENSES $124,000 $1,124,000
NON OPERATING EXPENDITURES
50885102.88010 Debt Service' $525,000 $525,000
TOTAL $649,000 $1,649,000
*Cities of Huntington Beach and Seal Beach for OC-35 realignment project loan
March 5,2020
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