REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Chris Davis, Senior Management Analyst
Subject:
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Approve the West Orange County Water Board (WOCWB) Fiscal Year 2025/26 Budget in the amount of $1,683,800
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Statement of Issue:
The City of Huntington Beach 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 FY 2025/26 prior to adoption by the Board as a whole.
Financial Impact:
The City’s proportional share of the WOCWB FY 2025/26 Budget is $1,046,624. This amount is made up of $103,112 for the annual operating budget, $382,512 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 2025/26 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 is included in the Water Master Plan business unit 50791006.
Recommended Action:
recommendation
Approve the WOCWB Proposed budget for Fiscal Year 2025/26, with the City of Huntington Beach amount of $1,046,624.
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Alternative Action(s):
Do not approve, 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 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 Westminster and two from the City of Huntington Beach. Mayor Pat Burns and Council Woman Gracey Larrea-Van Der Mark 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. Each member agency needs to approve the proposed budget via their governing bodies prior to adoption by the Board before the new fiscal year. The total proposed budget for Fiscal Year 2025/26 is $1,683,800. This includes $183,800 for the operating budget which includes maintenance, electricity, and administrative costs (legal, insurance, and audit fees); $500,000 in debt service for the OC-35 realignment project reimbursement agreement with OCTA, and the year 5 contribution of $1,000,000 for the Transmission Main Lifespan Extension Program (formerly Cathodic Protection Program) to extend the lifespan of both the OC-9 and OC-35 transmission mains. The FY 2025/26 budget also authorizes funding in the amount of $1,000,000 for construction of the program, in addition to the $3,700,000 carried over from the previous fiscal year.
The Board reviewed the proposed budget at the January 15, 2025 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 meeting, scheduled for April 16, 2025.
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:
Goal 6 - Infrastructure Investment, Strategy C - Conduct an assessment of all City facilities to determine priorities for upgrades and repairs, implementation and financial priority.
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. West Orange County Water Board Fiscal Year 2025/26 Budget
2. West Orange County Water Board Fiscal Year 2025/26 Member Agency Contributions
3. PowerPoint Presentation