Title
Consider recommending that the Monterey County Water Resources Agency Board of Supervisors approve the Water Resources Agency FY 2016-17 budget amendment to increase revenue and appropriations in the amount of $80,000 for Fund 130-Nacimiento Hydro-Electric Operations and Maintenance and $25,000 for Fund 122-Zone 9 Reclamation Ditch to pay invoices as a result of the unexpected flooding that occurred in the Winter of 2017; and
a. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency’s FY 2016-17 Adopted Budget and increase revenue and appropriations by $80,000 in Fund 930-8267-130-Naci Hydro-Electric Operations and Maintenance, WRA 022 financed by unassigned fund balance in Fund 930-8267-130-Naci Hydro-Electric Operations and Maintenance-WRA 022 (4/5th vote required);
b. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency’s FY 2016-17 Adopted Budget and increase revenue and appropriations by $25,000 in Fund 930-8267-122-Zone 9 Reclamation Ditch, WRA 012 financed by unassigned fund balance in Fund 930-8267-122-Zone 9 Reclamation Ditch-WRA 012 (4/5th vote required);
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors:
Recommend that the Monterey County Water Resources Agency Board of Supervisors approve the Water Resources Agency FY 2016-17 budget amendment to increase revenue and appropriations in the amount of $80,000 for Fund 130-Nacimiento Hydro-Electric Operations and Maintenance and $25,000 for Fund 122-Zone 9 Reclamation Ditch to pay invoices as a result of the unexpected flooding that occurred in the Winter of 2017; and
a. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency’s FY 2016-17 Adopted Budget and increase revenue and appropriations by $80,000 in Fund 930-8267-130-Nacimiento Hydro-Electric Operations and Maintenance, WRA 022 financed by unassigned fund balance in Fund 930-8267-130-Naci Hydro-Electric Operations and Maintenance-WRA 022 (4/5th vote required);
b. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency’s FY 2016-17 Adopted Budget and increase revenue and appropriations by $25,000 in Fund 930-8267-122-Zone 9 Reclamation Ditch, WRA 012 financed by unassigned fund balance in Fund 930-8267-122-Zone 9 Reclamation Ditch-WRA 012 (4/5th vote required);
SUMMARY/DISCUSSION:
Inflows into both San Antonio and Nacimiento Reservoirs this winter provided for substantial conservation storage. However, over 193,000 acre-feet of water was released from Nacimiento Reservoir for flood control purposes. Those controlled releases, through the Nacimiento Dam spillway, were the highest ever from Nacimiento Reservoir. Flood control releases from Nacimiento Dam spillway began February 2 and ended March 9, 2017.
Due to the recent low reservoir elevations due to drought years, Nacimiento Hydro-Electric Plant generator Unit 1, the larger generating unit, had not been run since September 2013. The Hydro-Electric Plant Fiscal Year 2016-17 budget was based on continued drought (low reservoir elevation) conditions, allowing only Unit 2 operation, the smaller generating unit, and a low level valve to maintain minimum fisheries release. At the time that the Fiscal Year 2016-17 budget was approved, monies were not available in Fund 130 to pay Unit 1 operating costs. Unit 1 generator testing and increased labor related to operating Unit 1 this year expended budgeted monies for Fiscal Year 2016-17 quicker than programmed. This Budget Amendment addresses the higher costs related to Unit 1 operation. Unit 1 operated portions of January and February 2017, then was shut down due to high water at the Hydro outlet, need for power pole replacement and generator testing, then began continuous operation March 30, 2017.
Winter storms of 2017 produced high rainfall, localized flooding, and at times heavy winds. Two pump stations in Agency Zone 9 - Reclamation Ditch were flooded and lost power, one in January 2017 and one in February 2017. Pump damage occurred at both locations, and a levee over-topped at one location, requiring repair. Power presently remains off at one pump station due to high water impacting electrical junction boxes. It is anticipated that access for repairs may be secured in mid-June. Drainage water flow at this station was maintained from February 2017 to the present by installation of portable pumps. Levee repair labor, cost of pump rental, fuel and labor to haul fuel to and maintain the portable pumps, from February 2017 to present are costs that are not normally incurred in the Zone 9 - Reclamation Ditch budget. This Budget Amendment is needed due to those costs.
OTHER AGENCY INVOLVEMENT:
None.
FINANCING:
$80,000 in Fund 130 Nacimiento Hydro-Electric Operations and Maintenance, financed by unassigned fund balance; and $25,000 in Fund 122 Zone 9 - Reclamation Ditch, financed by unassigned fund balance.
Prepared by: Brent Buche, Deputy General Manager, (831) 755-4860
Approved by: ________________________________________________
David E. Chardavoyne, General Manager, (831) 755-4860
Attachments:
Board Order