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:
title
Approve the West Orange County Water Board (WOCWB) FY 2024-25 Budget in the amount of $5,365,300
body
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:
recommendation
Approve the WOCWB proposed FY 2024-25 Budget and the City of Huntington Beach proportional share of $1,047,465.
end
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 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 Tem 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