08.b. Zone 3 Proposed BudgetMEMORANDUM
TO: CITY COUNCIL
FROM: ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVICE
SUBJECT: CONSIDERATION OF THE SAN LUIS OBISPO COUNTY FLOOD
CONTROL AND WATER CONSERVATION DIS'TRICT ZONE 3 FISCAL
YEAR 2012-13 PROPOSED BUDGET
DATE: MARCH 13,2012
RECOMMENDATION:
It is recommended the City Council: 1) Support the San Luis Obispo County Flood
Control and Water Conservation District Zone 3 FY 2012-1 3 proposed budget; and/or 2)
provide feedback to Council Member Costello, the City's Zone 3 Advisory Committee
representative.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The City of Arroyo Grandels portion of the proposed budget is $3,366,471; this is a
decrease in the City's 2012-13 Lopez Fund expenditures budget of approximately
$62,600.
No or minimal future staff time is projected.
BACKGROUND:
Arroyo Grande contracted in 1965 for 50.55% of the water from the Lopez Dam and
Reservoir. Because Arroyo Grande is the largest shareholder of water, it assumed the
largest share of the annual costs.
Each shareholder assigns a member to the Zone 3 Advisory Committee. Council
Member Costello is the City's representative. In addition, the Administrative Services
Director is on the Finance Director Committee and the Maintenance Supervisor attends
the Technical Advisory Committee meetings.
ANALYSIS OF ISSUES:
The County of San Luis Obispo Public Works Department prepares the Zone 3 budget
and presents it to the Finance Directors, Technical Advisory Committee and the Zone 3
Advisory Committee. The final review by the Zone 3 Advisory Committee is scheduled
for March 15, 201 2.
The proposed budget is approximately $97,000 less than the prior year and
approximately $590,000 less than the five year projections previously provided to the
Agenda Item 8.b.
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CITY COUNCIL
CONSIDERATION OF THE SLO COUNTY FLOOD CONTROL AND WATER
CONSERVATION DIS'TRICT ZONE 3 FISCAL YEAR 2012-13 PROPOSED BUDGET
MARCH 13,2012
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agencies. As mentioned previously, the Arroyo Grande's portion is $62,600 less than
what staff had budgeted in the City's FY 2012-13 budget. 'The majority of the savings is
derived from the recent refinancing of debt for the retrofit of the dam and by controllir(g
capital outlay costs.
Staff has reviewed the budget and believes the County has done an effective job in
controlling costs. Staff and Council review is part of measures put in place last year to
increase accountability and control over Lopez water expenses. It is placed on the
agenda to provide Council the opportunity to provide any input to Council Member
Costello prior to consideration by the Zone 3 Board of Directors.
ALTERNATIVES:
. The following alternatives are provided for City Council consideration:
- Support the proposed budget; Provide feedback to Council Member Costello;
- Do not approve staff recommendation and request further information;
- Oppose the proposed budget; or
- Provide direction to staff.
ADVANTAGES:
By supporting the Fiscal Year 2012-13 Flood Control Zone 3 proposed budget it will
provide the City with approximately $62,600 in savings.
DISADVANTAGES:
There are no disadvantages in relation to the recommended action.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NO'TIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on 'Thursday, March 8, 2012. The agenda
and report were posted on the City's website on Friday, March 9, 2012. No public
comments were received.
Agenda Item 8.b.
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