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Appropriation Adjustment and Sewer Transfer Agreement with Orange County Sanitation District <br />February 5, 2019 <br />Page 2 <br />agreement (Exhibit 3) to transfer Reaches A, B, and C, totaling approximately 8.5 miles of sewer <br />main, along with their associated capital sinking funds, totaling $23,229,000, to be deposited into <br />the City's Sewer Enterprise accounts. <br />The City is already contractually obligated to maintain the subject sewer mains, therefore there <br />are no additional operating expenditures incurred as a result of the proposed transfer. The <br />additional assets will be incorporated into future City sewer master plans which identify and <br />prioritize capital improvement projects. By accepting the transfer under the proposed terms, the <br />City benefits from the ability to have direct control of sewer facilities serving areas undergoing <br />major redevelopment and public infrastructure projects such as the Downtown, Station District, <br />and OC Streetcar projects. The City also benefits from the immediate deposit of funds into its <br />sewer capital recovery account that will allow the City's Sewer Enterprise to make a number of <br />sewer infrastructure improvements across the City as identified in the 2016 Sewer Master Plan. <br />Additionally, the parcels currently served via a direct connection to the subject sewer mains will <br />save $108 annually as a result of not being subject to the OCSD local sewer service fee. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & <br />Infrastructure, Objective #2 (address deferred maintenance on City buildings and equipment). <br />ENVIRONMENTAL IMPACTS <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />The recommended appropriation adjustment will recognize revenue from the sewer transfer in <br />the amount of $23,229,000 into the Sewer Capital Recovery Revenue Account (No. 05417002- <br />57990) and appropriate the same into the Sewer Capital Recovery—Reserve Appropriation <br />Expenditure Account_(No. 05417647-69011) for future capital improvement projects. <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Fv�� SVD-YI%-YtO <br />Fuad eiss, PE, PLS Kath n Downg, CPA sy <br />Executive irector Executive Director <br />Public Wo s Agency Finance and Management Services Agency <br />Exhibits: 1. OCSD Resolution 11-11 <br />2. Map of Reaches A through 1 <br />3. Agreement <br />65B-2 <br />