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HomeMy WebLinkAbout2010/06/22 Item 9 CITY COUNCIL AGENDA STATEMENT ~ \ 'f:. CITY OF '~-CHULA VISTA 6/22/10, Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AtvIENDING THE FISCAL YEAR 2009/2010 SEWER SERVICE REVENUE BUDGET AND APPROPRIATING $360,000 FROM THE A V AILABLE FUND BALANCE DIRECTOR OF PUBLIC WORKS @- ASSIST ANT DTREeOE ENGINEERTNG CITY MANAGER ASSIST ANT CITY ANAGER c.>J 4/STHS VOTE: YES [gJ NO 0 SUBMITTED BY: REVIEWED BY: SUMMARY Annually, the City of Chula Vista budgets for the treatment of wastewater by the City of San Diego Wastewater Metropolitan District (Metro) based on the estimated wastewater flows and strength. An appropriation of $360,000 is needed to address a shortfall in this FY 2009-10 budget due to a change in the refund methodology used by Metro. In prior years, refunds by Metro were credited to the final quarterly invoice for treatment services. As a result, staff budgeted projected expenditure minus anticipated credits. This year;a refund check was issued to the City and deposited into the Sewer Service Revenue Fund. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the proposed action consists of a governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 9-1 6/22/10 Item~ Page 2 of 2 DISCUSSION Annually, the final invoice is adjusted according to actual services rendered. Funds in the Sewer Service Revenue account are used for the purposes of maintaining and operating the municipal wastewater collection system including wastewater treatment charges by the Metropolitan Wastewater District (Metro). The City is billed by Metro for wastewater treatment services based on estimated wastewater flow and strength on a quarterly basis. Historically, the City has budgeted estimated expenses minus estimated credits from Metro. This year, Metro changed the refund methodology and issued a refund check, which was deposited directly in the Sewer Service Revenue Fund. An appropriation of $360,000 from the available Sewer Service Revenue Fund balance is necessary to meet estimated expenditure obligations budgeted in the Sewer Service, Services and Supphes, other contractual services line item. Per City Council Policy No. 220-02, Council approval is required for budget adjustments greater than $15,000. Approval of this appropriation will amend the FY 2009-10 Sewer Service Revenue fund budget. . DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(I) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT There is no impact to the General Fund as there' are sufficient funds lil the Sewer Service Revenue Fund for the appropriation. ONGOING FISCAL IMPACT The FY 2010-11 Sewer Service Revenue budget has been adjusted to reflect the change in methodology. It assumes Metro will continue to invoice the City on a quarterly basis and issue refund checks as necessary. ATTACHMENTS None. Prepared by Merce Leclair, Sr. Management Analyst, Public Works Department J: IEngineerIA GENDA ICAS20 1 0\06-22-1 Ov\1etro transfer-REVmI2.doc 9-2 RESOLUTION NO. 2010 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2009/2010 SEVVER SERVICE REVENUE BUDGET AND APPROPRLA.TING $360,000 FROM THE A V AILABLE FUND BALANCE WHEREAS, funds in the Sewer Service Revenue account are used for the purposes of maintaining and operating the municipal wastewater collection system including wastewater treatment charges by the Metropolitan Wastewater District (Metro); and WHEREAS, the City is billed by Metro for wastewater treatment services based on wastewater flow and strength in a quarterly basis; and WHEREAS, the quarterly payments are budgeted based on projected flows; and WHEREAS, historically, the City ofChula Vista has budgeted estimated expenses minus estimated credits from Metro; and WHEREAS, this year, Metro changed the refund methodology and issued a refund check, which was deposited directly in the Sewer Service Revenue Fund; and WHEREAS, an appropriation of $360,000 from the available Sewer Service Fund balance is necessary to meet estimated expenditure obligations budgeted in the Sewer Service, Services and Supplies, other contractual services line item; and WHEREAS, per City Council Policy No. 220-02, Council approval is required for budget adjustments greater than $15,000. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend the Fiscal Year. 2009/2010 Sewer Service Revenue budget and appropriate $360,000 from the available fund balance. . Presented by Approved as to form by , / Richard A. Hopkins Director of Public Works 9-3