Title
Consider supporting approval and recommendation by the Monterey County Water Resources Agency Board of Directors that the Water Resources Agency Board of Supervisors:
a. Adopt a resolution authorizing and directing the Auditor Controller to amend the Water Resources Agency’s FY 2019-20 Adopted Budget for Fund 134 - Salinas River Diversion Facility Operations Fund (134-9300-8497-WRA028) by increasing appropriations in the amount of $110,000 financed by Unassigned Fund Balance; (4/5 vote required) and,
b. Approve the contract fund amendment for Monterey One Water to increase the amount by $563,525 for a total amount of $2,130,525 in Fund 131 - Castroville Seawater Intrusion Project Operations; and
c. Approve the contract fund amendment for Monterey One Water to increase the amount by $211,254 for a total amount of $2,999,254 in Fund 132 - Salinas Valley Reclamation Project Operations; and
d. Approve the contract fund amendment for Monterey One Water to increase the amount by $231,254 for a total amount of $845,254 in Fund 134 - Salinas River Diversion Facility Operations.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Finance Committee:
Support approval and recommendation by the Monterey County Water Resources Agency Board of Directors that the Water Resources Agency Board of Supervisors:
a. Adopt a resolution authorizing and directing the Auditor Controller to amend the Water Resources Agency’s FY 2019-20 Adopted Budget for Fund 134 - Salinas River Diversion Facility Operations Fund (134-9300-8497-WRA028) by increasing appropriations in the amount of $110,000 financed by Unassigned Fund Balance; (4/5 vote required) and,
b. Approve the contract fund amendment for Monterey One Water to increase the amount by $563,525 for a total amount of $2,130,525 in Fund 131 - Castroville Seawater Intrusion Project Operations; and
c. Approve the contract fund amendment for Monterey One Water to increase the amount by $211,254 for a total amount of $3,210,508 in Fund 132 - Salinas Valley Reclamation Project Operations; and
d. Approve the contract fund amendment for Monterey One Water to increase the amount by $231,254 for a total amount of $855,254 in Fund 134 - Salinas River Diversion Facility Operations.
SUMMARY/DISCUSSION:
The Monterey County Water Resources Agency (MCWRA) and Monterey One Water (M1W), formerly known as Monterey Regional Water Pollution Control Agency (MRWPCA), entered into an Amended and Restated Water Recycling Agreement (Agreement), which included terms for ownership, operation, maintenance, payments for the Castroville Seawater Intrusion Project (CSIP), Salinas Valley Reclamation Project (SVRP), and Salinas River Diversion Facility (SRDF). Section 7.06 of the Agreement requires annual budgets and modifications to be approved by the M1W Board of Directors, MCWRA Board of Directors and MCWRA Board of Supervisors.
For FY 2019-20, due to a vacant Finance Manager position and an Interim General Manager, MCWRA and M1W agreed to submit budget that was the equivalent to FY 2018-19 plus a 3% increase. Once the two positions were permanently filled, both agencies reviewed the budget and identified additional needs for capital improvements which required an amendment to the approved contract amounts for FY 2019-20. As a result, M1W’s water are amended as follows:
Program Approved Revised Change
SVRP 2,788,000 2,999,254 211,254
CSIP 1,567,000 2,130,525 563,525
SRDF 614,000 845,254 231,254
Total 4,969,000 $5,975,033 $1,006,033
The contractual changes for the SVRP and CSIP were accommodated within FY 2019-20 approved budget and require no budget modifications. The changes to SRDF resulted in an increase of $110,000 over the approved appropriations in Fund 134 and require a budget amendment.
As required by section 7.06 of the Agreement, this report seeks approval of the contractual changes to the M1W FY 2019-20 budget as well as seeking approval to amend the adopted budget for Fund 134 to increase appropriations by $110,000 financed by unassigned Fund Balance.
OTHER AGENCY INVOLVEMENT:
The Monterey County Water Auditor Controller’s Office and County Administrative Office will review this request before it’s considered by the Board of Directors.
FINANCING:
The increase in appropriations in Fund 134 will be funded by unassigned Fund Balance. The contractual changes in Funds 131 and 132 will be funded by current available appropriations in these Funds and require no Budget Amendment.
Prepared by: Shaunna Murray, Senior Water Resources Engineer-Operations, (831) 755-4860
Attachments:
1. Monterey One Water Memo
2. Budget Amendment 1 Summary