PUBLIC WORKS COMMISSION
REQUEST FOR ACTION
SUBMITTED TO: Chairman and Members of the Commission
SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works
Subject:
title
Annual Sewer Service Performance Audit for Fiscal Year 2018/19
body
Statement of Issue:
The Huntington Beach Municipal Code (HBMC) requires an annual review of the Sewer Service Fund (511) by the Public Works Commission.
Funding Source:
Estimated Sewer Service User Charge Revenue for Fiscal Year 2019/20 is $10,579,698.
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 Fiscal Year 2019/20.
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 Fiscal Year 2018/19 and direct staff to provide additional information on specific items.
Analysis:
In accordance with the 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.
o In Fiscal Year 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:
o Operations and Maintenance: Thirty-three percent (33%) of the adopted annual budget to ensure adequate working capital for operating expenses. This amount is $2.6 million
o Capital Improvement Program (CIP): One-hundred percent (100%) of the average annual planned CIP for the following five years. This amount is $3.2 million.
o Emergency: an amount equal to the estimated cost, as determined by the City Engineer, to replace one sewer lift station. This amount is $3.5 million.
o The total reserve ...
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