Title
Approve Budget Amendment No. 5 authorizing the Auditor-Controller to amend the FY 2015-16 Adopted Budget, Department 9300, Unit 8267, Fund 303 (Rate Stabilization Reserve), Appropriation Unit WRA0025, Account 6613, to increase appropriations in the amount of $800,000 financed by unassigned fund balance to fund contracts for Rapid Response Teams and supplies for Emergency Responses for Winter 2015-16 (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
Approve Budget Amendment No.5 authorizing the Auditor-Controller to amend the FY 2015-16 Adopted Budget, Department 9300, Unit 8267, Fund 303 (Rate Stabilization Reserve), Appropriation Unit WRA0025, Account 6613, to increase appropriations in the amount of $800,000 financed by unassigned fund balance to fund contracts for Rapid Response Teams and supplies for Emergency Responses for Winter 2015-16 (4/5th vote required).
SUMMARY:
The Monterey County Water Resources Agency (MCWRA) has responsibility for a number of facilities from Nacimiento Dam in northern San Luis Obispo County to the Pajaro Levee at the northern boundary of Monterey County. MCWRA is the flood control agency for Monterey County. Normal operations and maintenance are programmed systematically throughout the year to ensure facility needs are met. Staff is recommending using funds from the Rate Stabilization Reserve (Fund 303) to enter into contracts and establish open purchase orders with suppliers to address Emergency Situations. Due to the size of the area and the amount of potential work at varying locations during a major storm event, there may be a delayed response or the inability to respond to facility needs. The creation of Rapid Response Teams and the availability of material suppliers for emergency situations will assist staff in addressing the needs.
DISCUSSION:
Winter 2015-16 is being forecasted as potentially one of the most severe winters experienced locally since the 1990’s. The strong El Nino could result in above normal rainfall with extreme intensities that are beyond facility capacities. MCWRA believes that being proactive to address the many unforeseen incidents that could occur will be beneficial in potentially reducing the negative impacts that may be experienced. Staff will put together contracts with entities that are capable of providing equipment and manpower to address emergency situations along with suppliers of needed materials.
OTHER AGENCY INVOLVEMENT:
MCWRA has been meeting regularly with Resource Management Agency, Office of Emergency Services and County Counsel. The Monterey County Water Resources Agency Board of Directors approved this Budget Amendment during their Special Board meeting on December 7, 2015. The Budget Committee supported approval of this action on January 27, 2016.
Due to the late submission of this report, the CAO Budget and Analysis division was not provided adequate time to review for potential fiscal, organizational, policy or other implications to the County of Monterey.
FINANCING:
When the FY 2015-16 Budget was developed, no contingency funds were set aside for emergency work. Due to the strong probability of forecasted El Niño winter storms, MCWRA Staff is recommending that Rate Stabilization Reserve funds (Fund 303) which has sufficient funds to cover contract expenditures for Rapid Response Teams and material suppliers in an amount not to exceed $800,000. The Agency will repay the Rate Stabilization Reserve when the hydro-electric dam is producing enough revenues for repayment of this loan.
Prepared by: Cathy Paladini, Finance Manager, (831) 755-4861
Approved by:
David E. Chardavoyne, General Manager, (831) 755-4860
Attachments:
MCWRA Executed Board Order