11 - Budget Adjustment - Fairview Trunk Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: Marc Davis , Treasurer Date: February 27 , 2013 Subject: Budget Adjustment for Fairview Trunk Summary A budget adjustment in the amount of $5,000 is required to provide adequate funding for District review of video and assessment of the Fairview trunk line prior to possible transfer of the trunk to the District. Staff Recommendation Approve budget adjustment in the amount of $5,000. Analysis Orange County Sanitation District (OCSD) is a “sanitation district”, as opposed to a “sanitary district,” and a sanitation district is a regional agency that owns large trunk sewers, treatment plants, w astewater recycling facilities and ocean outfall facilities. OCSD sewer lines are large (96” diameter) while a “sanitary district”, which is a local sewer agency, owns small diameter sewers (8”, 10”, 12”, etc.). OCSD has found itself owning multiple smal l diameter sewers that have caused OCSD to own and operate small diameter cleaning equipment in addition to their large scale equipment. OCSD, therefore, desires to transfer the smaller sewers to the local agencies in which they reside. OCSD and the Dist rict have to date entered into four phases of sewer line transfers. The proposed Fairview Trunk transfer would be Phase V.
Board of Directors February 27 , 2013 Page 2 of 2 In advance of the transfer of the Fairview Trunk, the District has been reviewing CCTV of the Trunk and assessing its condition for purposes of preparing an engineer’s estimate of the cost for needed repairs and rehabilitation in order to negotiate with OCSD. In order to provide a dequate funding for the completion of this assessment, the following budget adjustment is required. Liqu id Waste Fund Account Account Number Increase Decrease OCSD Fairview Trunk 20 -201299 -4300 $5,000 Contingency 20 -200000 -4995 $5,000 Strategic Plan Element & Goal This item supports achieving Strategic Element No. 1 .0, Sewer Infrastructure , and Strategic Goal No. 1 .4, System -wide Sewer Replacement and Repair Program . Legal Review Legal review is not required. Financial Review The District has $21,960 available in its sewer contingency account. This adjustment would reduce the sewer contingency account to $16,960. Committee Recommendation Not applicable. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the February 27 , 2013 Board of Directors regular meeting at District Headquarters (628 W. 19 th Street) and on the District’s website at www.cmsdca.gov . Alternative Actions 1. Refer the matter back to staff 2. Appropriate funds from another account