2004 AGN FEB 17 I17 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COLTON UTILITY AUTHORITY MEETING OF FEBRUARY 17, 2004 TO: HONORABLE MAYOR AND CIN COUNCIL FROM: DILU DE ALWIS, FINANCE DIRECTOR SUBJECT: RESOLUTION AUTHORIZING AMMENDMENT OF THE WATER DEPARTMENT BUDGET FOR FY 2003/04. DATE: FEBRUARY 5, 2004 Item #17 BACKGROUND: In April 2002 the City shut down Well No.'s 15, 17 and 24 due to water produced by those wells exceeding the revised action level for perchlorate. Emergency inter -ties were activated with the City of San Bernardino and Riverside Highland Water Company to meet system demand during the summer months. In January 2003, the Colton Utility Authority (CUA) passed Resolution No. CUA -2003-01 that declared an emergency condition, requiring immediate action to ensure the reliable delivery of a pure, wholesome and potable water supply and negotiation/execution of contracts as necessary for emergency repairs and services to complete a design -build wellhead treatment system for well No.'s 15, 17 and 24. The design and construction of those facilities is currently underway. DISCUSSION/ANALYSIS: At the meeting of January 5, 2003, the CUA approved Resolution No. CUA -2003-01 declaring an emergency and awarding a contract to U.S. Filter Company for $825,000 and at the August 5, 2003 meeting the CUA awarded a contract to U.S. Filter for the purchase of resin and other projects for well No.'s 15, 17 and 24 in the amount of $564,000. All costs associated with this project will be covered through various reimbursable grants or settlements related to the perchlorate litigation. In addition to these funding sources, the Regional Water Quality Control Board has levied fines to various companies doing business in the affected areas, and it is estimated that approximately $100,000 will be awarded to the City of Colton Water Utility to be used specifically towards this project. At the time the above mentioned reports were approved by the CUA, the staff reports/resolutions did not request authorization to amend the approved budget. The contracts for the projects have been awarded and work has begun, however staff does not have authorization to amend the approved budget. FINANCIAL IMPACT: Funds for the above mentioned projects will be received from various sources including Goodrich Corporation ($1,000,000 already received), Regional Water Quality Control Board (RWQCB) (reimbursement grant), and fines levied by RWQCB. The total budget adjustment requiring CUA authorization is $1,489,000 in account number 521-8100-8105-3895-0000-000. ENVIRONMENTAL IMPACT: None