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HomeMy WebLinkAboutApprove West Orange County Water Board (WOCWB) Proposed Budg dv-�,.( �/1 RPPIeo✓ED �-U City of Huntington Beach File #: 21 20-1 MEETING DATE: 4/5/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Sean Crumby, Director of Public Works Subject: Approve the West Orange County Water Board (WOCWB) proposed budget for Fiscal Year 2021/22. 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) Joint Powers Authority. The individual member agencies of WOCWB need to approve the proposed WOCWB budget for Fiscal Year (FY) 2021/22, prior to adoption by the Board as a whole. Financial Impact: The City's share of the WOCWB FY 2021/22 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. The FY 2021/22 proposed operating budget is included in the Water Fund business unit 50685801, the debt service is included in the Water Master Plan business unit 50785999, and the Cathodic Protection Program is included in the Water Fund business unit 50691016. Recommended Action: Approve the WOCWB Proposed budget for Fiscal Year 2021/22, with the City of Huntington Beach amount of S1,048.936. Alternative Action(s): Do not approve the 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 2 Printed on 3/31/2021 39 ca«e,ej t, Le�s7a, " File #: 21-204 MEETING DATE: 4/5/2021 Westminster, and two from the City of Huntington Beach. Council Members Natalie Moser and Erik Peterson represent the City of Huntington Beach. The General Manager of the WOCWB (the City of Huntington Beach Public Works Deputy Director) submits a proposed budget to the Board for review at mid-year for approval by the Board, prior to the beginning of the new fiscal year, after all member agencies' Councils have approved their share of the budget. The total proposed budget for Fiscal Year 2021/22 is $1,649,000. This includes $124,000 for the operating budget which includes maintenance, electricity and administrative costs (legal, insurance and audit fees); $525,000 in debt service for the OC-35 realignment project reimbursement agreement with OCTA; and S1,000,000 for the Cathodic Protection Program to extend the lifespan of both the OC-9 and OC-35 transmission mains. The Board reviewed the proposed budget at the February 17, 2021 , special meeting and moved to recommend that each agency approve their share of the budget. Upon approval by each agency, the Board will consider approval of the budget at their next meeting, scheduled for April 21 , 2021 . Environmental Status: Not applicable. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. West Orange County Water Board Proposed Fiscal Year 2021/22 Budget City of Huntington Beach Page 2 of 2 Printed on 3/31/2021 40 powered by Leoistar'- WEST ORANGE COUNTY WATER BOARD DRAFT FISCAL YEAR 2021-22 BUDGET FY 20-21 FY 21-22 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 $1,000,000 $1 ,000,000 OPERATING EXPENSES $1,124,000 $1,124,000 NON OPERATING EXPENDITURES 50885102.88010 Debt Service" $525,000 $525,000 TOTAL $1,649,000 $1,649,000 'Cities of Huntington Beach and Seal Beach for OC-35 realignment project loan January 13, 2021 41 DRAFT FY 21 -22 BUDGET AGENCY CONTRIBUTIONS Operating Budget (Including Cathodic Protection) ACCOUNT NUMBER AGENCY OWNERSHIP FY 21/22 COST PERENTAGE 50800508.46610 Huntington Beach 56.1 $630,564 50800508.46620 Garden Grove 4.2 $47,208 50800508.46630 Seal Beach 14.3 $160,732 50800508.46640 Westminster 25.4 $285,496 Totals 100.0 $1,124,000 Fourth Year OC-35 Relocation Project Loan Payment 50800508.46610 Huntington Beach 56.1 $418,372 50800508.46620 Garden Grove' 4.2 SO 50800508.46630 Seal Beach 14.3 S106,628 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 January4?3, 2021