AGENDA REPORT
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 11/15/2017
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Public Works Department
Department of Water and Power
SUBJECT:
Title
City Council and Corona Utility Authority consideration to authorize a transfer of $725,000 within the Water Utility Fund from the Capital Improvement Project titled “Temescal Valley Water District Service Area Boundary Adjustment” to the Capital Improvement Project titled “Corona Airport Waterline Project”; and authorize an appropriation of $25,000 from the Reclaimed Water System Fund to the Capital Improvement Project titled “Corona Airport Waterline Project.”
End
RECOMMENDED ACTION:
Recommended action
That the:
1. City Council authorize a transfer of $725,000 within the Water Utility Fund from the Capital Improvement Project titled “Temescal Valley Water District Service Area Boundary Adjustment” to the Capital Improvement Project titled “Corona Airport Waterline Project.”
2. City Council authorize an appropriation of $25,000 from the Reclaimed Water System Fund to the Capital Improvement Project titled “Corona Airport Waterline Project.”
3. Corona Utility Authority (CUA) review, ratify, and to the extent necessary, direct that the City Council take the above action.
Body
ANALYSIS:
Design of the Corona Airport Waterline Project was initiated in 2011 in response to the U.S. Army Corps of Engineers’ (Corps of Engineers) proposed Alco Dike Project. The Alcoa Dike Project would require abandonment, relocation, and/or protection of a variety of City of Corona utilities. An existing 8-inch potable waterline in Butterfield Drive, which services Butterfield Park and the Corona Municipal Airport, was identified as a utility requiring relocation prior to construction of the proposed dike. Utilities in Butterfield Drive and Butterfield Park were built on US Army Corps of Engineers property after construction of Prado Dam and do not have prior rights with respect to relocation costs. Therefore, relocation costs are the City’s responsibility. The Alcoa Dike Project would also include reconstruction of Butterfield Drive with a raised profile to cross the newly constructed dike. The existing waterline in Butterfield Drive was constructed of asbestos cement pipe in 1967, and would be vulnerable to damage from the heavy equipment traffic necessary for construction of the dike.
In January 2014, K&A Engineering, Inc. submitted final design drawings for the relocation of the necessary City-owned utilities. City staff worked with the Corps of Engineers during the design phase to obtain the necessary encroachment permits, but the permitting process was suspended in 2014 after the Corps of Engineers placed the Alcoa Dike Project on indefinite hold.
As lead local agency, Orange County Public Works (OCPW) recently informed the City of Corona that the Corps of Engineers intends to restart the Alcoa Dike Project, and wishes to abandon, relocate, and/or protect all affected utilities by September 2018, pending Federal funding of the Alcoa Dike Project. The existing waterline in Butterfield Drive continues to be one of the utilities affected by the proposed Alcoa Dike Project.
The Corona Airport Waterline Project will include construction of approximately 1,325 linear feet (LF) of new 8-inch ductile iron waterline - including all necessary connections, services, fire hydrants, blow offs, and related work - from Jenks Circle, through Butterfield Park, to Butterfield Drive. This project will also include moving an existing 8-inch reclaimed water service in Butterfield Park approximately 300 feet to the west, to relocate the service away from the proposed dike footprint. The location and limits of the Corona Airport Waterline Project are shown on Exhibit “A.”
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
The recommended action will result in a budget transfer of $725,000 from the Capital Improvement Project titled “Temescal Valley Water District Service Area Boundary Adjustment” (CIP 65630) to the Capital Improvement Project titled “Corona Airport Waterline Project” (CIP 68390). Additionally, an appropriation of $25,000 is recommended from the Reclaimed Water System Fund to the Capital Improvement Project titled “Corona Airport Waterline Project” (CIP 68390) to move the existing reclaimed water service. The recommended actions will provide funding for completion of the project design, environmental compliance, and construction by the September 2018 deadline.
Design of the Temescal Valley Water District Service Area Boundary Adjustment Project is currently on hold. Funding for the project can be re-allocated during the Fiscal Year 2018-19 budget process without impacting the project.
Funding for the Corona Airport Waterline Project was not requested in the current fiscal year budget because notification from OCPW occurred as the Fiscal Year 2017-18 budget was being finalized, and insufficient information was available to estimate project costs.
Based on current available working capital in the Reclaimed Water System Fund, a loan from the Water Reclamation Utility Fund may be needed at fiscal year-end, based on final actuals. Staff will return to City Council for loan authorization before fiscal year-end, if needed.
With approval of the recommended actions, funding will be available in the Fiscal Year 2017-18 Capital Improvement Budget as follows:
|
Account Name |
Fund |
Account |
Amount |
|
Reclaimed Water System Fund |
567 |
65630 |
$25,000 |
|
Water Utility Fund |
570 |
65630 |
$725,000 |
|
Total: |
$750,000 |
|
Fund |
07/01/17 Est. Working Capital |
Budgeted Revenues/ Sources |
Budgeted Expenditures/ Uses |
Working Capital Impacts |
06/30/18 Est. Working Capital |
|
Reclaimed Water System Fund |
$0 |
$7,300,000 |
($7,300,000) |
($25,000) Appropriation +$25,000 Loan proceeds if needed at fiscal year end |
$0 |
|
Water Utility Fund 570 |
$15,308,755 |
$52,966,456 |
($66,930,094) |
N/A - transfer between existing projects |
$1,345,117 |
ENVIRONMENTAL ANALYSIS:
The project meets the criteria set forth in the California Environmental Quality Act (CEQA) Section 15301 (b). for categorical exemption from environmental analysis. However, environmental analysis under CEQA, as well as the National Environmental Policy Act (NEPA), is required by the US Army Corps of Engineers because the project is within the federally-owned Prado Basin area.
An Initial Study and Mitigated Negative Declaration (IS/MND) was prepared by Albert A. Webb & Associates and distributed for public comment in May 2013. Comments were received within the review period ending June 18, 2013, and incorporated into the final document. The IS/MND and associated Mitigation Monitoring and Reporting Program have not yet been adopted by Council due to the US Army Corps of Engineers placing the Alcoa Dike Project on hold in 2014.
NEPA compliance was initiated with the US Army Corps of Engineers in 2013, and suspended due to the Alcoa Dike Project being placed on hold. Upon completion of the addendum to the IS/MND, NEPA compliance documentation will be prepared and submitted to the US Army Corps of Engineers for approval prior to construction of the project.
An addendum to the IS/MND will be prepared in conjunction with the final design. The final IS/MND and addendum, as well as NEPA compliance documentation will be presented for City Council consideration at a future date.
PREPARED BY: VERNON R. WEISMAN, P.E., DISTRICT ENGINEER
REVIEWED BY: TOM KOPER, P.E., ASSISTANT PUBLIC WORKS DIRECTOR
REVIEWED BY: NELSON D. NELSON, P.E., PUBLIC WORKS DIRECTOR
REVIEWED BY: TOM MOODY, GENERAL MANAGER
REVIEWED BY: KIM SITTON, FINANCE MANAGER
REVIEWED BY: PATRICIA SONG, FINANCE MANAGER
REVIEWED BY: KERRY D. EDEN, ASSISTANT CITY MANAGER/ADMINISTRATIVE SERVICES DIRECTOR
SUBMITTED BY: DARRELL TALBERT, CITY MANAGER