Title
a. Approve a transfer of $83,300 from General Fund Contingencies, 001-1050-8034-Appropriation Unit CAO020 to 001-1050-8054-CAO-Intergovernmental & Legislative Affairs (CAO-IGLA), Appropriation Unit CAO004 to pay the ex-officio or full Monterey Peninsula Regional Water Authority membership fee for Fiscal Year 2012-13; and
b. Approve and authorize the Auditor-Controller to modify the FY 2013-14 Adopted Budget by increasing appropriations in CAO-IGLA, Appropriation Unit CAO004 and decreasing appropriations in General Fund Contingencies, Appropriation Unit CAO020 in the amount of $83,300 to reflect these approved changes in the FY 2013-14 Adopted Budget.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a) Approve a transfer of $83,300 from General Fund Contingencies, 001-1050-8034-Appropriation Unit CAO020 to 001-1050-8054-CAO-Intergovernmental & Legislative Affairs (CAO-IGLA), Appropriation Unit CAO004 to pay the ex-officio or full Monterey Peninsula Regional Water Authority membership fee for FY 2012-13; and
b) Approve and authorize the Auditor-Controller to modify the FY 2013-14 Adopted Budget by increasing appropriations in CAO-IGLA, Appropriation Unit CAO004 and decreasing appropriations in General Fund Contingencies, Appropriation Unit CAO020 in the amount of $83,300 to reflect these approved changes in the FY 2013-14 Adopted Budget.
SUMMARY:
On September 11, 2012, the Board approved the transfer of General Fund Contingencies in the amount of $83,300 for payment of the County's FY 2012-13 pro-rata share of costs to become an ex-officio or full member of the Monterey Peninsula Regional Water Authority. Since the County wasn't invoiced until November 2013, the payment was not issued. This report requests a transfer of $83,300 in order to pay this invoice. This action was reviewed by the Budget Committee on April 3, 2014 and recommended for approval by the Board.
DISCUSSION:
The Monterey Peninsula Regional Water Authority was created in February 2012. The Authority originally consisted of the six cities on the Monterey Peninsula: Carmel-by-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Sand City and Seaside. The Authority has two main purposes: 1) To ensure the timely development, financing, construction, operation, repair, and maintenance of one or more water projects; and 2) To ensure that the governance of such water projects includes representation that is directly accountable to water users.
The Authority was formed due to concerns regarding severe and increasing restrictions as a result of the California Water Resources Control Board cease and desist order limiting pumping by Cal-Am in the Carmel Valley Groundwater Basin and a judicial order limiting pumping in the Seaside Groundwater Basin. Cal-Am has been pursuing a regional desalination project to provide additional water to its customers. The Authority was formed due to concerns regarding the regional desalination project as compared to potential alternatives, governance of the regional project, and the need for representation that is directly accountable to the Cal-Am customers who would receive water from the regional project.
Since 34% of California American Water Company (Cal-Am) customers reside within non-incorporated areas, Monterey County was requested to join the Authority by the mayors of the Monterey Peninsula cities.
The Board of Supervisors took action on September 11, 2012, to approve payment of a pro-rata contribution to the Authority in the Amount of $83,300, based on an initial FY 2012-13 budget of $245, 245.
The Authority has requested that the County contribute additional funding for its continuing activities. Staff will seek additional direction from the Board regarding its future participation, funding, and voting status, in a separate report at a future date.
OTHER AGENCY INVOLVEMENT
The Budget Committee reviewed this recommendation at their April 3, 2014 meeting and recommends approval by the Board. The County Administrative Office worked with the Monterey Peninsula Regional Water Authority to provide information contained in this report.
FINANCING
It is recommended to source the $83,300 ex-officio or full Monterey Peninsula Regional Water Authority membership fee for FY 2012-13 through the General Fund Operational Contingencies, 001-1050-8034-7811-CAO020 and transfer the funds to CAO-Intergovernmental and Legislative Affairs 001-1050-8054-CAO004. The General Fund Operational Contingencies are sourced with one-time funding. Any use of General Fund Operational Contingencies may require reductions in other programs. The FY 2013-14 Adopted Budget for General Fund Operational Contingencies is $4,794,358. The Board has approved one transfer from the General Fund Contingencies for FY 2013-14. There are two requests pending support by the Budget Committee for transfer of General Fund Contingencies; this Report and another. With support of this requested action to transfer $83,300 from contingencies and support of the other Report, the remaining General Fund Operational Contingencies budget would be $3,336,508.
Prepared by:
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Annette D'Adamo
Management Analyst III
Approved by:
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Nicholas E. Chiulos
Assistant County Administrative Officer