Title
Approve Budget Amendment No. 6 for the Water Resources Agency authorizing the Auditor-Controller to amend the Monterey County Water Resources Agency’s FY 2015-16 Adopted Budget for the Dam Operations O&M Zone 2C Fund 116, Appropriation Unit WRA006 and San Antonio Non-O&M Zone 2A to increase estimated revenue & appropriations by $524,099 for epoxy coating to San Antonio low level outlet pipe and valves (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
Approve Budget Amendment No. 6 for the Water Resources Agency authorizing the Auditor-Controller to amend the Monterey County Water Resources Agency’s FY 2015-16 Adopted Budget for the Dam Operations O&M Zone 2C Fund 116, Appropriation Unit WRA006 and San Antonio Non-O&M Zone 2A to increase estimated revenue & appropriations by $524,099 for epoxy coating to San Antonio low level outlet pipe and valves:
a. Support amending the FY 2015-16 Adopted Budget, Dept. 9300, Unit 8267, Fund 116 Dam O&M Zone 2C, Appropriation Unit WRA006, Account 6613 to increase appropriations by $524,099 financed by an operating transfer in of $524,099 from Fund 115 (4/5th vote required) and,
b. Support amending the FY 2015-16 Adopted Budget to transfer $524,099 from Dept. 9300, Unit 8267, Fund 115 [San Antonio Dam Non-O&M Zone 2A], Appropriation Unit WRA005, Account 7614 financed by Fund Balance account 3001, to Fund 116 [Dam O&M Zone 2C], Appropriation Unit WRA006, Account 5940 in the amount of $524,099 (4/5th vote required).
SUMMARY/DISCUSSION:
San Antonio Dam, built in the 1960’s, includes a large diameter low level outlet pipe, and an epoxy coating was applied to the internal pipe and valves during construction. The internal coating was touched-up in the 1980s. During the fall of 2015, San Antonio Reservoir was reduced to an historic low elevation, which allowed access to the outlet pipe for inspection. It was found that the internal pipe coating needed replacement. A contractor was hired to recoat 496 feet of the 1,100 foot long outlet pipe. The work consisted of surface preparation by sand blasting the pipe; application of epoxy filler in pitted areas; and, application of two coats of epoxy-based paint. This recoating work was completed on December 16, 2015 at a cost of $544,458.30, paid from Agency Fund 116, Zone 2C - San Antonio Dam Operations and Maintenance. Agency Fund 115 Zone 2A holds a reserve of $524,099 for maintenance work specifically at San Antonio Dam.
This action recommends that the Board of Supervisors authorize the transfer of the reserve amount from Fund 115 to Fund 116 to reimburse Fund 116 for a majority of the recoating work cost.
OTHER AGENCY INVOLVEMENT:
The Monterey County Water Resources Agency Board of Directors approved this Amendment on January 25, 2016. The Budget Committee reviewed this matter 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:
This transaction will transfer $524,099 in Fund 115 General Reserve to Fund 116 to pay for maintenance work performed at San Antonio Dam.
Prepared by: Fabricio Chombo, Accountant III, (831) 755-4842
Approved by:
David E. Chardavoyne, General Manager, (831) 755-4860
Attachment:
MCWRA Executed Board Order