ITEM 4. 10
CITY MANAGER' S REPORT
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE BUDGET AMENDMENT FOR THE
OPERATION AND MAINTENANCE OF THE LATHROP
CONSOLIDATED TREATMENT FACILITY
RECOMMENDATION: Adopt Resolution to Approve a Budget Amendment for Wastewater Plant Operation and Maintenance of
the Lathrop Consolidated Treatment Facility
SUMMARY:
The Lathrop Consolidated Treatment Facility ( LCTF) plays a crucial role in providing sewer treatment capacity for various development areas, including Crossroads, Mossdale, River Islands, South Lathrop Specific Plan, Gateway Specific Plan and Central Lathrop Specific Plan. The Operations and Maintenance of the LCTF is contracted through an agreement with Veolia and is paid through CTF Fund 6080.
Due to higher -than anticipated - costs for repair, maintenance, and replacement costs and pass -through costs experienced in the current fiscal year FY 2024-5, a budget amendment is requested to increase appropriations for Fund 6080 in the amount of 290, 00for the remainder of this fiscal year. Any future cost increases beyond July 2025 will be included in budgets presented to the City Council at a later date.
BACKGROUND:
The LCTF plays a crucial role in providing sewer treatment capacity for various development areas including Crossroads, Mossdale, River Islands, South Lathrop Specific Plan, Gateway Specific Plan, and Central Lathrop Specific Plan. Veolia is responsible for the operation and maintenance services of the LCTF under the Operations and Maintenance ( O&M) Agreement that was initially established between the City and US Filter Operating Services in 2003.
On March 13, 2023, the City Council approved an amended and restated agreement with Veolia for the Operations and Maintenance of the LCTF. This decision was primarily driven by the changes in operation and maintenance requirements brought about by the Surface Water Discharge Project, CIP WW 20- 17. This agreement ensures the continued efficient and effective functioning of the LCTF to meet the growing demands of the development areas it serves.
REASON FOR RECOMMENDATION:
A budget amendment for CTF Fund 6080 is requested due to wastewater operation and maintenance costs surpassing initial projections for fiscal year FY 2024-5 by 290, 00.
CITY MANAGER' SREPORT PAGE 2
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
APPROVE BUDGET AMENDMENT FOR THE OPERATION AND MAINTENANCE
OF THE LATHROP CONSOLIDATED TREATMENT FACILITY
FISCAL IMPACT:
Insufficient funds were allocated in CTF Fund 6080 to accommodate the increase in costs. Therefore, a budget amendment is being requested to increase the appropriation by $ 290, 00 as follows:
Increase Appropriation
CTF Fund 6080- 5- 34- 420- 01- $ 290, 00
Any cost increases occurring after July 2025 will be incorporated into the budgets that are presented to the Council at a later date.
ATTACHMENTS:
A. Resolution to Approve a Budget Amendment for Wastewater Plant Operation and Maintenance of the Lathrop Consolidated Treatment Facility.
CITY MANAGER' S REPORT PAGE 3
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
APPROVE BUDGET AMENDMENT FOR THE OPERATION AND MAINTENANCE
OF THE LATHROP CONSOLIDATED TREATMENT FACILITY
APPROVALS:
BraWraylor
City Engineer
Cari Ja
Finance D rector
Date
2/V/S
Date
3.• zoZs
Michael King Date
Assistant City Manages
Salvador Navarrete Date
City Attorney
3. 4-• 25
Stephen' Salvatore Date
City Manager
RESOLUTION NO. 25 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
TO APPROVE A BUDGET AMENDMENT FOR WASTEWATER PLANT OPERATION
AND MAINTENANCE OF THE LATHROP CONSOLIDATED TREATMENT
FACILITY
WHEREAS, the Lathrop Consolidated Treatment Facility ( LCTF) plays a crucial role in providing sewer treatment capacity for various development areas, including Crossroads, Mossdale, River Islands, South Lathrop Specific Plan, Gateway Specific Plan and Central Lathrop Specific Plan; and
WHEREAS, on March 13, 2023, City Council approved an amended and restated agreement with Veolia Water West Operating Services, Inc., (Veolia) for the Operations and Maintenance of the LCTF which is paid through CTF Fund 6080; and WHEREAS, due to higher -than anticipated -costs for repair, maintenance, and replacement costs and pass -through costs experienced in the current fiscal year FY 2024-5, a budget amendment of $ 290, 00 is necessary to increase appropriations for Fund 6080 for the remainder of this fiscal year; and WHEREAS, any cost increases occurring after July 2025 will be incorporated into the budgets that are presented to the Council at a later date.
NOW THEREFORE, BE IT RESOLVED, , that the City Council of the City of Lathrop does hereby approve a budget amendment in the amount of $ 290, 00 as follows:
Increase Appropriation
6080- 5- 34- 420- 01- $290, 00
The foregoing resolution was passed and adopted this 10th day of March 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete City Attorney
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