SR-505-001 (7)
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March 25, 1986
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Santa 'Monica,
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council Meeting:
.
To:
Mayor and city Council
From:
city staff
SUbject:
Request for Additional Appropriation to Cover sewage
Treatment Operation and Maintenance Costs
Introduction
This report requests the city council to appropriate an
additional $90,098 from the sewer fund to cover the costs of the
operation and maintenance charges to the City from the Hyperion
Sewage Treatment Plant.
Background
A joint powers agreement with the city of Los Angeles (Contract
#1577 [CCS]) requires that Santa Monica pay a share of the
operation and maintenance costs of the Hyperion Sewage Treatment
Plant based on the quantity of sewage which the city discharges
to the treatment plant.
Based on the final accounting of the
Hyperion Plant O&M costs for FY83-84 by the city of Los Angeles,
staff estimated that the charges for FY85-86 would be
approximately $600,000.
(Charges for O&M are not finalized and
communicated to the City until approximately nine months after
the end of the fiscal year of activity and four months after
submission of Capital Improvement requests for the succeeding
year. )
Due to increasing costs for O&M at Hyperion the actual
invoiced costs for FY85-86 are $686,898. In addition, $3,200 was
paid to the County of Los Angeles to conduct the initial survey
for the industrial wastewater control program.
As shown in the
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to-Z
"AR 2 5 1986
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GS:SS:EL:JH:a
Council Meeting:
.
.
March 25, 1986
Santa Monica, California
following table these costs create a shortage in the line item
account of $90,098 (account number 3l-500-661-000-S12).
Invoiced by Los Angeles County
$ 686,898.
$ 3,200.
Invoiced by Los Angeles City
Total
Budgeted FY86
$ 690,098.
$ 600,000.
DEFICIT
$ 90,098.
The magnitude of this deficit cannot be financed by decreasing
any other current year expenditures in the sewer fund.
BUdget/Financial Analysis
The additional appropriation of $90,098 can be financed from the
Sewer Fund fund balance.
Recommendation
staff recommends that the city Council increase the appropriation
at account number 31-500-661-000-512 and that the increased
appropriation be financed from the Sewer Fund fund balance.
Prepared by: Stan Scholl, Director of General Services
Ed Lash, utilities Manager
Jack Hoagland, Administrative Water Engineer
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