| | | | | | | | Agenda Item - 3.c.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Lisa L. Kim
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Approval of the proposed Fiscal Year 2024-25 West Orange County Water Board Cost Sharing Budget and Amendment to the Joint Powers Authority Agreement. (Action Item) | Date: | 2/27/2024 |
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| | | | | | | | OBJECTIVE
To receive City Council approval of the West Orange County Water Board Fiscal Year 2024-25 proposed cost sharing budget for operational expenses and cathodic protection system (CP) project cost. |
| | | | | | | | BACKGROUND
The West Orange County Water Board (WOCWB) is a joint powers authority created in 1967 by the cities of Garden Grove, Huntington Beach, Seal Beach, and Westminster for the purpose of maintenance and operation of shared water transmission lines for imported water. One of the connections is located near Bolsa/Newland and is referred to as OC-9. The other connection is located near Westminster/Willow and is referred to as OC-35.
Of those shared water transmission lines, the OC-9 and OC-35 transmission lines require life extension, as each pipeline is 65 years and 57 years old respectively. The average lifespan of a cement lined and coated steel pipeline ranges between 70-80 years. The options to ensure that water service to member agencies would continue into the future would be to replace the pipelines in 10 to 20 years at a cost of $50 million or install a CP at a cost of $8 million. On March 18, 2020, the WOCWB voted to proceed with the installation of a CP, which is also the most cost effective solution. |
| | | | | | | | DISCUSSION
The joint powers agreement requires that the WOCWB prepare a proposed annual budget and that each of the contracting public agencies approve the budget before its adoption. The total WOCWB budget for fiscal year 2024-25 is $1,665,300 for operational expenses and capital costs. A table showing the annual breakdown by agency is included as an attachment. The OC-35 relocation project loan payment has been paid off by the City.
On September 12, 2023, City council approved the fifth amendment for the joint powers agreement with the WOCWB to permit alternate members to the board of directors. The WOCWB is proposing a sixth amendment to provide stipends up to a maximum of $200 for board members and alternate board members for the purpose of reimbursing traveling expenses. |
| | | | | | | | FINANCIAL IMPACT
The City of Garden Grove Water Services Division share is set at 4.2 percent of the total operational expenses and CP project cost and amount for an annual total of $49,783. The funding is included in the Water Enterprise Fund's operating budget. There is no impact to the General Fund. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
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Approve the West Orange County Water Board Fiscal Year 2024/25 proposed cost sharing budget for operational expenses and cathodic protection system project cost;
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Approve the sixth amendment for the joint powers agreement with the West Orange County Water Board to provide stipends up to a maximum of $200 for board members and alternate board members for the purpose of reimbursing traveling expenses; and
- Authorize the Mayor to execute the Sixth Amendment to the Joint Powers Agreement, on behalf of the City.
By: Samuel Kim, P.E., Deputy Public Works Director/Water Service Manager
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| ATTACHMENTS: | | Description | Upload Date | Type | File Name | | Budget | 2/13/2024 | Backup Material | WOCWB_FY_24-25_Draft_Budget.pdf | | Sixth Amendment Agreement | 2/13/2024 | Agreement | WOCWB_Amendment_6_to_JPA_-_Director_comp_(3).pdf |
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