CITY OF POMONA
COUNCIL REPORT
December 5, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Chris Diggs, Water Resources Director
SUBJECT: Adopt a Resolution Amending the FY 2022-23 Water operating fund and the Recycled Water program BUDGET RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2022-216 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE FY 2022-23 WATER OPERATING FUND AND THE RECYCLED WATER PROGRAM BUDGET BY APPROPRIATING $347,366 OF RECYCLED WATER RESERVES EXECUTIVE SUMMARY:
The recommended action will provide funding to cover the FY 2021-22 bill for purchasing recycled water from the Los Angeles County Sanitation Districts (District).
FISCAL IMPACT:
The Water Resources Department (WRD) received an invoice for wholesale recycled water from the District that was purchased in FY 2021-22 that totaled $441,704. Of this total, $302,323 is a credit, leaving a $139,381 balance due. Additionally, WRD staff is anticipating FY 2022-23 invoice for recycled water in the amount of $507,985. The current adopted budget amount of $300,000 in the FY 2022-23 Recycled Water program budget (Acct# 574-8140-53641-00000) is not sufficient to cover these invoices and will require $347,366 in additional appropriations from the Recycled Water Reserves, which has an adequate fund balance. Future costs for purchasing wholesale recycled water from the District will be budgeted for in the appropriate fiscal year.
PREVIOUS RELATED ACTION:
None.
DISCUSSION:
Through an agreement established in 1966, the City purchases wholesale recycled water from the Pomona Water Reclamation Plant which is owned and operated by the District. The City then sells the recycled water to its customers through its recycled water distribution system. In 2004 the City and the District amended the contract to establish a rate based on a “shared saving” formula that takes into account both the City’s and District’s operating costs, which is calculated by the District. The calculation is performed after the fiscal year has ended in order to take into account all of the year’s cost.
Based on the shared savings calculation it was determined costs were higher than originally expected and that the City would be required to pay an additional $139,381 for recycled water purchased in FY 2021-22. At this juncture City staff have reviewed the calculation and invoice and believe it is true and valid and is requesting to amend its budget to allow for payment to the District.
Prepared by:
Damian Martinez
Damian Martinez
Senior Management Analyst
ATTACHMENT:
Attachment No. 1 – Resolution No. 2022-216
Resolution to Appropriate Recycled Water Reserves for Payment of Purchased Recycled Water from the District