Title
Acting on behalf of County Service Area No. 31 - Aromas:
a. Accept a report on the financial condition of County Service Area No. 31 - Aromas;
b. Authorize the Auditor-Controller to increase appropriations in County Service Area No. 31 - Aromas, Fund 065-3000-8198-RMA061, in the amount of $15,000 for the Aromas Drainage System Rehabilitation Project; and
c. Authorize the Auditor-Controller to incorporate the approved increase in appropriations into the FY 2013-14 budget (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors acting on behalf of County Service Area No. 31 - Aromas:
a. Accept a report on the financial condition of County Service Area No. 31 - Aromas;
b. Authorize the Auditor-Controller to increase appropriations in County Service Area No. 31 - Aromas, Fund 065-3000-8198-RMA061, in the amount of $15,000 for the Aromas Drainage System Rehabilitation Project; and
c. Authorize the Auditor-Controller to incorporate the approved increase in appropriations into the FY 2013-14 budget (4/5th vote required).
SUMMARY/DISCUSSION:
The recent appearance of a sinkhole has warranted a review of the County Service Area No. 31 - Aromas (CSA 31 - Aromas) drainage system. Funds need to be appropriated for inspection, project engineering/management, and follow-up point repair construction of the storm drain line. If investigation reveals the need for repairs more extensive than a single point failure, then a greater funding solution will need to be investigated. CSA 31 - Aromas is a limited portion of the Aromas community and associated storm drainage system.
The costs associated with the Aromas Drainage System Rehabilitation Project will be financed by the CSA 31 - Aromas (Fund 065, Unit 8198). Pending Board approval, sufficient appropriations will be available in the CSA 31 - Aromas for a single point repair project. If the investigation reveals additional repairs beyond the responsibility of CSA 31 - Aromas, the Road Fund will be responsible for the non- CSA 31 - Aromas portion of the rehabilitation project.
Appropriating $15,000 from the Unappropriated Fund Balance would result in a 44% reduction, and a resulting balance of $19,173. The resulting Unappropriated Fund Balance is still more than ten times the annual operating budget for CSA 31 - Aromas. The current revenue projections are $1,423, which are approximately four times greater than the non-project expenses, resulting in an increase of approximately $1,000 per year to the Unreserved Fund.
OTHER AGENCY INVOLVEMENT:
The Budget Committee supported these actions at their regular meeting on October 30, 2013.
FINANCING:
There is no financial impact to the General Fund. The current Unappropriated Fund Balance is $34,173. The remaining Unappropriated Fund Balance after this transfer will be $19,173. There may be an impact to the Road Fund, Fund 002-3000-8195-RMA012, should repairs be required beyond the responsibility of CSA 31 - Aromas. At this time the potential impact amount is not known.
Prepared by: Dirk J. Medema, P.E., Environmental Services Manager, (831) 784-5647
Approved by:
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Robert K. Murdoch, P.E., Director of Public Works
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Benny J. Young, RMA Director
Dated: October 1, 2013
Attachments: Project Budget; Location Map (Attachments on file with the Clerk of the Board)