Title
Approve and recommend that the Water Resources Agency Board of Supervisors:
a. Authorize the Auditor-Controller to amend the Agency’s FY 2018-19 Adopted Budget for Fund 111 - WRA Administration Fund (111-9300-8267-WRA001) by increasing appropriations in the amount of $90,000 financed by Unassigned Fund Balance 111-3101; and
b. Authorize the Auditor-Controller to amend the Agency’s FY 2018-19 Adopted Budget for Fund 116 - Dam Operations (116-9300-8485-WRA006) by increasing appropriations in the amount of $200,000 financed by Unassigned Fund Balance 116-3101; and
c. Authorize the Auditor-Controller to amend the Agency’s FY 2018-19 Adopted Budget for Fund 122 - Reclamation Ditch (122-9300-8487-WRA012) by increasing appropriations in the amount of $70,000 financed by Unassigned Fund Balance 122-3101; and
d. Authorize the Auditor-Controller to amend the Agency’s FY 2018-19 Adopted Budget for Fund 130 - Hydro-Electric Operations (130-9300-8490-WRA022) by increasing appropriations in the amount of $80,000 financed by Unassigned Fund Balance 130-3101.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors approve and recommend that the Water Resources Agency Board of Supervisors authorize the Auditor-Controller to:
a. Amend the Agency’s FY 2018-19 Adopted Budget for Fund 111 - WRA Administration Fund (111-9300-8267-WRA001) by increasing appropriations in the amount of $90,000 financed by Unassigned Fund Balance 111-3101; and
b. Amend the Agency’s FY 2018-19 Adopted Budget for Fund 116 - Dam Operations (116-9300-8485-WRA006) by increasing appropriations in the amount of $200,000 financed by Unassigned Fund Balance 116-3101; and
c. Amend the Agency’s FY 2018-19 Adopted Budget for Fund 122 - Reclamation Ditch (122-9300-8487-WRA012) by increasing appropriations in the amount of $70,000 financed by Unassigned Fund Balance 122-3101; and
d. Amend the Agency’s FY 2018-19 Adopted Budget for Fund 130 - Hydro-Electric Operations (130-9300-8490-WRA022) by increasing appropriations in the amount of $80,000 financed by Unassigned Fund Balance 130-3101.
SUMMARY/DISCUSSION:
The Monterey County Water Resources Agency (Agency) needs to increase appropriations to perform more Dam operations requirements and maintenance performance listed below:
• Fund 111 - WRA Administration Fund is the consolidation of many other funds such as Lower Merritt Lake. The 200HP Pump in the Lower Merritt Lake Pump Station has been in disrepair for the last four (4) years and this expenditure was left out during the building of FY 2018-19 budget. Staff was finally able to secure the appropriate contract to have the pump removed and rebuilt, which is costing $75,000. While using $60,000 from budgeted ALERT grant and an additional $15,000 from repairing a 15HP Cascade Lift Pump that still need to be completed this fiscal year, which is causing the need to increase the appropriation to cover such expenses.
• The Federal Energy Regulatory Commission (FERC) requires the Agency to complete specific tasks within a timely matter in Fund 116 - Dam Operations. If such tasks are not completed before December 31, 2018, FERC could issue the Agency with limitation of reservoir storage, or the Agency could be fined $22,000 per day for noncompliance and potentially revoke power production license from the Agency. The Board of Directors had authorized the General Manager to engage current contractors to provide services of up to $200,000 for these tasks in Fund 116 - Dam Operations.
• The Agency needs to increase appropriation in Fund 122 - Reclamation Ditch in the amount of $70,000 to cover the purchase of three (3) new replacement tide gates because the old ones are wearing out due to aging issue. Two (2) tide gates are for the larger upper gates and one (1) for the smaller lower gates for a total of $25,000. The additional $45,000 is for pest control, traffic control during clean up, and garbage removal at Reclamation Ditch area due to more homeless dumping trash in the ditch.
• During the building of FY 2018-19 budget, there was a miscommunication between Agency staff, the Agency needs to increase $80,000 in Fund 130 - Hydro-Electric Operations to cover the cost of requirement to provide scheduling services through a Power Purchase Agreement.
COMMITTEE ACTION:
The Finance Committee supported approval of this recommendation on November 2, 2018.
OTHER AGENCY INVOLVEMENT:
The CAO’s Office and County Counsel has reviewed this recommendation.
FINANCING:
There are sufficient fund balances to support the increase in appropriations for the Agency’s FY 2018-19 Adopted Budget for Funds 111, 116, 122, and 130.
Prepared by: Brent Buche, Deputy General Manager, (831) 755-4860
Approved by: _________________________________________________
David E. Chardavoyne, General Manager, (831) 755-4860
Attachments:
1. FY 2018-19 Budget Amendment # 4 Summary
2. Board Order