PUBLIC WORKS COMMISSION
REQUEST FOR ACTION
SUBMITTED TO: Chairman and Members of the Commission
SUBMITTED BY: Sean Crumby, PE, Director of Public Works
Subject:
title
Annual Sewer Service Performance Audit for Fiscal Year 2020-21.
body
Statement of Issue:
The Huntington Beach Municipal Code (HBMC) requires an annual review of the Sewer Service Fund by the Public Works Commission.
Funding Source:
Estimated Sewer Service User Charge revenue for Fiscal Year (FY) 2021-22 is $10,747,168.
Recommended Action:
recommendation
Motion to recommend that the City Council receive and file the Sewer Service Fund Performance Audit in accordance with HBMC Section 14.54.070 for FY 2020-21.
end
Alternative Action(s):
Do not recommend the City Council receive and file the Sewer Service Fund Performance Audit in accordance with HBMC Section 14.54.070 for FY 2020-21 and request staff to provide additional information on specific items.
Analysis:
In accordance with Huntington Beach Municipal Code Section 14.54.070, the Public Works Commission shall review the annual performance of the Sewer Service Fund. Recommendations from the Commission shall be provided to the City Council in conjunction with the budget process.
In FY 2014-15, the City Council adopted a reserve policy for all enterprise funds. The reserve policy for the Sewer Service Fund states that the City will maintain a reserve equal to the sum of the following:
* Operations and Maintenance: Thirty-three percent (33%) of the adopted annual budget to ensure adequate working capital for operating expense. This amount is approximately $4.6 million for FY 2021-22.
* Capital Improvement Program (CIP): One hundred percent (100%) of the average annual planned CIP for the following five years. This amount is approximately $4.6 million for FY 2021-22.
* Emergency: An amount equal to the estimated cost, as determined by the City Engineer, to replace one sewer lift station. The estimate cost is $3.5 mi...
Click here for full text