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HomeMy WebLinkAboutApprove the West Orange County Water Board (WOCWB) FY 2024/2 (2) 2000 Main Street, .�N'[ING70 Huntington Beach,CA (4-o �� ;, ;�•. �� 92648 r "�4,•� City of Huntington Beach APPROVED 7-0 �t NiCF-..,�6rrasa+,r �, COUNTY tl"`,', File #: 24-136 MEETING DATE: 3/19/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Eric G. Parra, Interim City Manager VIA: Chau Vu, Director of Public Works PREPARED BY: Chris Davis, Senior Management Analyst Subject: Approve the West Orange County Water Board (WOCWB) FY 2024 -25 Budget in the amount of $5,365,300 Statement of Issue: The City is a member of the West Orange County Water Board (WOCWB) Joint Powers Authority. Each WOCWB member agency needs to approve the proposed WOCWB FY 2024-25 Budget via their governing bodies prior to adoption by the Board as a whole. Financial Impact: Huntington Beach's proportional share of the proposed WOCWB FY 2024-25 Budget is $1,047,465. This amount consists of the Operating Budget ($103,953), Cathodic Protection ($561,000), and the OC-35 Relocation Project Loan Payment ($382,512). The proposed FY 2024-25 operating budget amounts for operations, cathodic protection, and debt service are included in Water Fund business units 50685801, 50790016, and 50785201, respectively. Recommended Action: Approve the WOCWB proposed FY 2024-25 Budget and the City of Huntington Beach proportional share of$1,047,465. Alternative Action(s): Do not approve the proposed WOCWB FY 2024-25 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. The WOCWB was created to operate and maintain large City of Huntington Beach Page 1 of 2 Printed on 3/13/2024 powerea0A Leg istarTM' File #: 24-136 MEETING DATE: 3/19/2024 diameter pipelines shared between the member agencies. Huntington Beach's proportional share is 56.1% of the system. The WOCWB is governed by five (5) elected officials, one (1) each from the cities of Garden Grove, Seal Beach and Westminster and two (2) from the City of Huntington Beach. Mayor Gracey Van Der Mark and Mayor Pro Tern Pat Burns represent the City of Huntington Beach. The General Manager of the WOCWB (Huntington Beach, Public Works Deputy Director-Utilities) submits a proposed budget to the Board for review at mid-year. Afterward, each WOCWB member agency needs to approve the proposed budget via their governing bodies prior to adoption by the Board as a whole before the new fiscal year. The proposed WOCWB FY 2024-25 Budget is $5,365,300. This includes $185,300 for the operating budget which includes maintenance, electricity and administrative costs (legal, insurance and audit fees); $480,000 in debt service for the OC-35 realignment project reimbursement agreement with OCTA, and the year 4 contribution of$1,000,000 for the Cathodic Protection Program to extend the lifespan of both the OC-9 and OC-35 transmission mains. The FY 2024-25 budget also authorizes funding in the amount of$3,700,000 for construction of the OC-9 Cathodic Protection program. This amount includes $3,000,000 previously collected from member agencies over the past three (3) years, plus $1,000,000 requested in FY 2023-24. The Board reviewed the proposed budget at the January 17, 2024 regular 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 scheduled meeting on April 17, 2024. Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Non Applicable -Administrative Item For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>. Attachment(s): 1. WOCWB Proposed FY 2024-25 Budget 2. WOCWB Proposed FY 2024-25 Budget Member Agency Contributions 3. Cathodic Protection Program Timeline 4. Power Point City of Huntington Beach Page 2 of 2 Printed on 3/13/2024 powerenkf LegistarTM WEST ORANGE COUNTY WATER BOARD PROPOSED FISCAL YEAR 2024/25 BUDGET FY 23/24 FY 24/25 Approved Proposed ACCOUNT NUMBER ACCOUNT DESCRIPTION OPERATING EXPENSES 50885101.61200 Electricity $4,500 $4,500 50885101.64620 Contracts for Repairs and Maintenance $30,000 $35,000 PLC Design for SCADA $25,000 $70,000 Vault (2) Refurbishment $20,000 $0 50885101.69345 Auditing $5,500 $5,800 50885101.69375 Attorney Fees $2,500 $2,500 50885101.73010 General/Liability Insurance $9,500 $10,000 50885101.75400 Board Stipend Expense $2,500 $5,000 50885101.79100 Contingency $2,500 $2,500 50885101.82100 OC-35 Turnout Rehabilitation Design $0 $50,000 50885101.82100 Cathodic Protection $1,000,000 $1,000,000 OPERATING EXPENSES $1,102,000 $1,185,300 NON OPERATING EXPENDITURES 50885102.88010 Debt Service $475,000 $480,000 SUBTOTAL $1,577,000 $1,665,300 50885103.82100 Cathodic Protection Design2 $300,000 50885103.82100 Cathodic Protection Construction $3,700,000 TOTAL $5,365,300 'Cities of Huntington Beach and Seal Beach for OC-35 realignment project loan 2 Cathodic Protection Project Funds will come from funds already collected for the project beginning in FY 2020-21, including the current request,and will not increase the total budget request. January 10, 2024 302 FISCAL YEAR 2024/25 PROPOSED BUDGET AGENCY CONTRIBUTIONS Operating Budget (Including Cathodic Protection) ACCOUNT NUMBER AGENCY OWNERSHIP FY 24/25 COST PERENTAGE ' 50800508.46610 Huntington Beach 56.1 $664,953 50800508.46620 Garden Grove 4.2 $49,783 50800508.46630 Seal Beach 14.3 $169,498 50800508.46640 Westminster 25.4 $301,066 Totals 100.0 $1,185,300 Sixth Year OC-35 Relocation Project Loan Payment 50800508.46610 Huntington Beach 56.1 $382,512 50800508.46620 Garden Grove* 4.2 $0 50800508.46630 Seal Beach 14.3 $97,488 50800508.46640 Westminster* 25.4 $0 • Totals 100.0 $480,000 *Garden Grove and Westminster have paid off their portions of the loan Total Adopted Budget 50800508.46610 Huntington Beach 56.1 $1,047,465 50800508.46620 Garden Grove* 4.2 $49,783 50800508.46630 Seal Beach 14.3 $266,986 50800508.46640 Westminster* 25.4 $301,066 Total Budget $1,665,300 January 10, 2024 303 Cathodic Protection Program Timeline FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY25/26 FY26/27 FY 27/28 Total Total Member Agency Contribution $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $8,000,000 OC-9 Design -$300,000 -$300,000 OC-9 Construction -$3,700,000 -$3,700,000 OC-35 Design -$300,000 -$300,000 OC-35 Construction -$3,700,000 -$3,700,000 1 Design and Contruction cost estimates were made when the program was proposed in the FY 20/21 budget. Costs are anticipated to increase due to recent inflation. A more accurate estimate will be available after the OC-9 design is complete. 304 if or, Ar......,..,... ,i\ WI. 1 N r Approve West Orange v ............ .•• �0)IIP0RAre % CountyWater Board o . tA �, - - Fiscal Year 2024/25 .- , ,, r, l ,: ,., »,,,� , ; ,, ,,, .. Budgetti , r i , __ . . - • _-- __.- ___- -..,._ - _____ . - _ - ----z-_ - ..,.-_-_ -_,_ - • .,-7- $ _ , _.-_,,..- — - - e March 19, 2024 • ---- - _ _ . - . 1 64046.1`4'• -''' - • •'-- 6‘1%4" 0 7 0 ••...• Or 0UNTN � ►..•,,,,,, ,,,fr 305 WOCWB • Joint Powers Authority that owns and operates OC-9 and OC-35 Water Transmission mains • Five (5) member board — Mayor Gracey Van Der Mark and Mayor Pro Tem Pat Burns representing Huntington Beach • Proportional share: • Huntington Beach (56. 1 %) • Garden Grove (4.2%) • Seal Beach (14.3%) �,� A�NTINGT© • Westminster (25.4%) i, � C4RPOAgpFQ•••• • Each Member Agency must approve the budget before the o Q�lk WOCWB as a whole can approve the budget in April +�F.,;;e ;., P�:���oo,` 306 WOCWB FY 2024/25 Budget • FY 2024/25 Total WOCWB budget = $5,365,300 • Operating Budget = $ 185,300 • Debt Service = $480,000 • Cathodic Protection Contribution = $ 1 ,000,000 • Cathodic Protection-Construction = $3,700,000 (includes $ 1 ,000,000 in FY 23/24 plus $3,000,000 � ,>N �N�T collected each of prior three years �' �'�U�CORPaR'��'°� • Huntington Beach share = $ 1 ,047,465 (56 1 %) • -� '• COONTY 307 WOCWB FY 2024/25 Budget • Budget presented at January 17, 2024 meeting • Requested each agency to approve before adoption by the Board at the April 17, 2024 meeting c.a; ' _ \ V ••.......... OGNY 308