Title
Support authorizing the Auditor-Controller to amend the FY 2017-18 adopted budget for the Boronda County Sanitation District, Fund 156, Appropriation Unit RMA 045, increasing appropriations in the amount of $47,497, where Fund 156 unassigned fund balance is the financing source.
Report
RECOMMENDATION:
It is recommended that the Budget Committee support authorizing the Auditor-Controller to amend the FY 2017-18 adopted budget for the Boronda County Sanitation District, Fund 156, Appropriation Unit RMA 045, increasing appropriations in the amount of $47,497, where Fund 156 unassigned fund balance is the financing source.
SUMMARY/DISCUSSION:
The Boronda County Sanitation District will incur costs greater than the amount budgeted FY 2017-18 budget. This is due to equipment replacement as well as sanitation system upgrades necessary to support increased sanitation flows from new farm labor housing developments.
In January 2018, Pump #2 failed at the Boronda Oaks lift station. The pump was approximately six (6) years old, about a year older than the average life expectancy of five (5) years. Each pump station requires two pumps to provide redundancy in the system. The cost of the replacement pump was $6,486.
Additional unanticipated costs are related to a 75-unit farm labor housing development located on Madison Lane. This project required engineering consulting service to review and provide a system analysis to determine if the existing system would be able to accommodate increased sewer flows from the development. The analysis concluded that the two pumps located at the Madison Lane lift station will require the upgrade of larger impellers to meet the demands of the increased flow rates. The engineering and equipment upgrade costs are estimated at $19,045. The developer will be required to reimburse the District for costs associated with this upgrade and, to date, have paid $12,045 to fund the cost of the analysis. Staff is in the process of preparing a developer agreement to cover the costs of the pump impeller upgrades.
During the system investigation related to the farm labor housing development, an offset in the sewer line was discovered. An offset is created in a sewer line where the joints meet and the two sections of pipe no longer align. Repair of this offset is necessary at an estimated cost of $7,500.
Finally, additional staff time was required for the housing development, as well as the Sewer System RFQ project that is currently in process.
FINANCING:
The recommended action will increase the FY 2017-18 adopted budget appropriations in Fund 156, Appropriations Unit RMA045 by $47,497, financed by Fund 156 unassigned fund balance and the above-mentioned developer payments. The FY 2017-18 estimated beginning fund balance for the BCSD Fund 156, RMA045, is $82,487. The recommended action will reduce fund balance by $14,234, leaving an estimated balance of $68,253 at the end of the fiscal year.
As the anticipated transfer of existing sewer systems progresses, it is expected that a Proposition 218 rate increase will occur within the next 12 months to establish rates that will accommodate annual maintenance and operations costs as well as increase reserves to meet large scale repairs and capital projects.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Projects and expenditures funded by this appropriation meet initiatives related to Economic Developer (farm labor housing), Infrastructure, Health & Human Services, and Public Safety to ensure the system can accommodate existing and new flows related to increased development.
X Economic Development
__Administration
X Health & Human Services
X Infrastructure
X Public Safety
Prepared by: Lynette Redman, Management Analyst III, (831) 796-6038
Approved by: Shawne Ellerbee, RMA Deputy Director of Administrative Services
Approved by: Carl P. Holm, AICP, RMA Director
Attachments:
Attachment A - Budget Sheet
Attachment B - Location Map