Westminster City Council
SUBJECT
Title
West Orange County Water Board (WOCWB) Annual Operational Budget for FY 2024/25.
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publichearing
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From: Jake Ngo, Public Works Director/City Engineer
Requested by: Administration
Prepared by: Veronica Johnson, Management Analyst
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RECOMMENDED ACTION
Recommendation
A. Approve the West Orange County Water Board’s FY 2024/25 budget shared between Westminster, Huntington Beach, Seal Beach, and Garden Grove, approving Westminster’s contribution of $301,066; and
B. Approve the Sixth Amendment to West Orange County Water Board Joint Powers Agreement among the cities of Westminster, Huntington Beach, Seal Beach, and Garden Grove.
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BACKGROUND
The West Orange County Water Board (WOCWB) consists of members representing the cities of Westminster, Huntington Beach, Garden Grove, and Seal Beach. The main function of the Board is to maintain and manage, by the City of Huntington Beach’s water staff, the lines and valves for two of our three Metropolitan Water District (MWD) connections. One of those 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. The third MWD connection for Westminster is located near Katella and Dale, referred to as OC-53, and is managed and maintained by the Westminster Water Division.
Staff has reviewed and agrees with WOCWB’s proposed 2024/25 budget in the amount of $1,185,300. Westminster’s contribution to the operating portion of the budget will be $301,066; representing 25.4% of the total Operating Budget for FY 2023/24. This covers all anticipated maintenance activities for the two mentioned pipelines, and does not include any payment toward the, already completed, OC-35 Relocation Project Loan. The City of Westminster already paid its entire share of such loan.
The proposed budget also includes Westminster’s annual share of the Cathodic Protection Program. The conditions of the OC-9 pipeline and the OC-35 pipeline are nearing the end of their life span. In 2020, the WOCWB approved the Cathodic Protection Program, which uses an electrical charge to prevent corrosion of the metal in the aging water lines and thus extending their lifespans. The anticipated $8 million cost is to be collected from the cities over an eight-year period. Westminster’s annual share is $254,000 for eight years, this being the fifth of the eight years.
The Sixth Amendment to West Orange County Water Board Joint Powers Agreement is being amended to increase the stipend for the Board of Directors from $100 to $200 per meeting of the Board. The proposed increase is already included in the proposed WOCWB’s budget for FY 2024/25.
FISCAL IMPACT
Funds in the amount of $301,066 are budgeted in Account Number 55502-552101, Fund 602 (Utility Administration).
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Approval of the West Orange County Water Board’s FY 2024/25 budget, and Westminster’s contribution of $301,066, and the approval of the Sixth Amendment to West Orange County Water Board Joint Powers Agreement, increasing the stipend of the Board of Directors to $200 per Board meeting.
ATTACHMENTS
1. West Orange County Water Board Proposed FY 2023/24 Budget
2. Sixth Amendment to West Orange County Water Board Joint Powers Agreement
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager