Title
Acting on behalf of County Service Area 75 - Chualar adopt a Resolution to:
Authorize the Auditor-Controller to amend the FY 2017-18 adopted budget for County Service Area 75 Chualar, Fund 093, Appropriation Unit RMA088, increasing appropriations in the amount of $38,637, where Fund 093 unassigned fund balance is the financing source (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors acting on behalf of County Service Area 75 - Chualar adopt a Resolution to:
Authorize the Auditor-Controller to amend the FY 2017-18 adopted budget for County Service Area 75 Chualar, Fund 093, Appropriation Unit RMA088, increasing appropriations in the amount of $38,637, where Fund 093 unassigned fund balance is the financing source (4/5th vote required).
SUMMARY/DISCUSSION:
County Service Area 75 Chualar (CSA 75) was formed on June 15, 1993 to provide extended county services including sanitation services, street lighting, and storm and surface water drainage.
CSA 75 will incur costs greater than the amount budgeted in the FY 2017-18 budget. This is due to an unanticipated sewer line repair, equipment repairs, Special Districts staff time, and fleet service charges and vehicle usage costs. The sewer line repair is the result of a partially collapsed sewer pipe that restricts the flow of sewage in the line. Special Districts staff is currently developing the scope of work for this project which will be completed through the Job Order Contracting program (JOC).
The CSA 75 sewer system conveys wastewater to treatment ponds where an aerator is utilized to add air and mix the wastewater to promote the breakdown of organic material. The aerator currently requires repair to work properly. Finally, the CSA has also seen increases in fleet service and vehicle usage costs and additional staff time related to the above-mentioned projects as well as the Sewer System RFQ project that is currently in process.
OTHER AGENCY INVOLVEMENT:
This recommendation was supported by the Budget Committee on May 30, 2018.
FINANCING:
The recommended action will increase the FY 2017-18 adopted budget appropriations in Fund 093, Appropriations Unit RMA088, by $38,637, financed by Fund 093 unassigned fund balance. The FY 2017-18 estimated fund balance for CSA 75 Fund 093, RMA088, is $111,694. The recommend action will reduce fund balance by $62,603, leaving an estimated balance of $49,091 at the end of the fiscal year.
A wastewater rate increase was approved in December 2017 and the new rates went into effect on January 1, 2018. The rates will be phased in over the next five years with increases every January through FY 2021-2022. The estimated annual revenue from sanitation fees for the current fiscal year is approximately $67,800. Sanitation revenue in subsequent years is expected to be $114,000 in FY 2018-19, $190,000 in FY 2019-2020, $240,000 in FY 2020-2021, and $246,000 in FY 2021-22.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The requested appropriation for CSA 75 will adhere to Strategic Initiatives related to Health & Human Services, Infrastructure, and Public Safety by ensuring proper wastewater flow and system operation.
__ Economic Development
__ Administration
X Health & Human Services
X Infrastructure
X Public Safety
Prepared by: Lynette Redman, RMA Special Districts Management Analyst III (831) 796-6425
Reviewed by: Melanie Beretti, RMA Services Manager
Approved by: Shawne Ellerbee, RMA Deputy Director of Administrative Services
Approved by: Carl P. Holm, AICP, RMA Director
Attachments:
Attachment A - Resolution
Attachment B - CSA 75 Budget
Attachment C - CSA 75 Location Map
(Attachments on file with the Clerk of the Board)