4/10/2024
1 RiversideCA.gov
1 RiversideCA.gov
GAGE CANAL COMPANY CAPITAL
EXPENDITURE BUDGET FOR FY 2023/24
City Council
April 23, 2024
Public Utilities Department
RiversideCA.gov
2 BACKGROUND
1. The 1965 Agreement For Operation of Gage Canal
Facilities establishes budget submittal requirement.
2. Approval was historically done by RPU GM.
3. CAO opined Board and Council should be involved.
4. City’s “approval” not necessary for execution of
Company expenditures.
1 2
4/10/2024
2 RiversideCA.gov
3 BACKGROUND (CONT.)
5. RPU GM and two Board of Public Utilities members sit on Company Board.
6. Company Board develops and approves capital
budget.
7. Budget normally submitted in September.
RiversideCA.gov
4 DISCUSSION
1. Section 15 of the Agreement states: …”The Company
shall submit an annual capital expenditure budget
for approval by the City”…
2. If Company fails to submit budget, then potential
breach of contract.
3. Total FY 23/24 budget = $468,600.
3 4
4/10/2024
3 RiversideCA.gov
5 DISCUSSION (CONT.)
4. Capital improvements necessary for ongoing
performance obligations.
5. Not a “direct” financial expenditure of City.
6. City pays proportionate share via Company
shareholdings.
RiversideCA.gov
6 Strategic Priority 6 - Infrastructure, Mobility and Connectivity Goal No. 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
5 6
4/10/2024
4 RiversideCA.gov
7 RECOMMENDATION
That the City Council approve the Gage Canal Company’s
capital expenditure budget for Fiscal Year 2023/24.
7