TO: Lake Berryessa Resort Improvement District Board
FROM: Tracy Schulze - Auditor-Controller
REPORT BY: Georgina Panganiban -Accountant-Auditor Manager
SUBJECT: Authorization to prepare necessary entries to close the financial books for the fiscal year ended June 30, 2024.
RECOMMENDATION
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Authorize preparation of the necessary accounting entries to close the financial books for the fiscal year ended June 30, 2024. (Fiscal Impact: $3,554,206 Expense; Lake Berryessa Resort Improvement District Fund; Not budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Auditor-Controller anticipates completing all the necessary accounting entries to close the financial books for the fiscal year ended June 30, 2024 by Monday, September 30, 2024. Completing this process requires approval by the Lake Berryessa Resort Improvement District Board and requires a 4/5 vote.
The two requested actions for approval include:
1. Approve Budget Amendment 24-1410, increasing appropriations by $3,554,206 in Fiscal Year 2024-25 for continued projects from Fiscal Year 2023-24. On June 25, 2024, your Board approved estimated amounts of remaining budget and related contracts to be carry forward into the following year. This item is to ratify final amounts resulting from completing all accounting entries through June 30, 2024. See Attachment A.
2. Maintain the fund balance restriction in the amount of $150,151 for FEMA/CALOES revenue received for the 2017 Storm Event. Funds are restricted until the projects are fully audited and can be released.
The eight capital improvement projects to be completed in Fiscal Year 2024-25 or beyond are as follows:
Project 19007
Ponds Inflow Mitigation Project was created in September of 2018 for the purpose of sewer collection system inflow and infiltration studies after heavy rainfall in the winter of 2017 caused a series of spills into the environment. The carryover appropriations amount is $33,658. The re-encumbrance contract for G.H.D. Inc. (No.2403068B) is $18,472.
Project 22009
To find other sustainable potable water resources from Putah Creek, the drought, aged infrastructure and wildfire devastation in the Putah Creek watershed have compromised the water supply The carryover amount is $2,011,958.
Project 22013
Replace treatment process air compressors, refrigerated dryer, delivery piping, add cross-flow building ventilation, small pipe, metal door, protective coatings. Move chemicals to outdoor storage. Drinking water and regulatory permit compliance. The carryover amount is $101,491.
Project 22014
Coatings on the tank interior are deteriorating rapidly with pit corrosion emerging through steel wall panels in the past year. Seep stains when the tank has filled are evident on the outside surfaces. The metal roof dome and showing signs of corrosion attack. Replace bolted steel tank with reinforced concrete structure. A new tank is necessary to prevent raw sewerage spills into nearby Putah Creek prompting regulatory enforcement action by Central Valley Regional Water Quality Control Board. Clean water, environmental and regulatory permit compliance. The carryover amount is $567,347. The re-encumbrance contract for G.H.D. Inc. (No.230149B) is $18,458.
Project 22015
The existing generator provides emergency power to the water treatment plant and associated pump operations, as well as to the District’s central sewer lift station (Station A) and one ancillary lift station (Station E). Standby power at this location is critical to maintaining both water and sewer service during scheduled Public Safety Power Shutdowns, emergencies (e.g. wildfires and storms), or when PG&E power is unstable. Drinking water, clean water, environmental and regulatory permit compliance. The carryover amount is $14,516.
Project 22016
Over the past ten (10) years pump stations and water storage tanks have been integrated into the Rockwell Factory Talk Human Machine Interface (HMI) platform. While functional, the older generation HMI software does not provide advanced level of automation, remote control, alarm alerts, sufficient network speed, trend charts and dependability needed by the District in a more stringent regulatory environment. Monthly State Compliance Report data originates from the SCADA systems. Drinking water, clean water, environmental and regulatory permit compliance. The carryover amount is $93,595. The re-encumbrance contract for Telestar (No. 230381B) is $78,710.
Project 23005
To replace an existing, Tank number 3, a 100,000 gallon redwood water storage tank original to the District with a new bolted steel tank with similar capacity. Other improvements include access road improvements, site security at all three of the District’s potable storage tank locations, and the installation of equipment in each of the three tanks that will help reduce the formation of disinfection byproducts in the District potable water. The carryover amount is $576,827 and includes grant revenue carryforward of the same amount from the State of Water Resources Control Board. The re-encumbrance contract for G.H.D (No. 230208B) is $48,128; for Piazza (No. 240118B) is $273,927; for RGM Kramer (No. 240189D) is $9,275.
Project 24019
The Drought and Water Supply Sustanability project includes procurement of material and services to install a floating intake structure in Putah Creek. It is to conduct temporary water transfers within the creek channel from up-channel pools to the existing intake pool during drought conditions, rehabilitation of the existing stationary intake structure, and hydrogeologic explorations for a potential alternative water supply that can satisfy the maximum daily water demand of the community. The carryover amount is $154,814 and includes grant revenue carryforward of $320,481.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
All capital projects listed (19007, 22009, 22013, 22014, 22015, 22016, 23005 and 24019) are funded with use of available fund balance. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of these entries will enable the books to be properly closed in compliance with Generally Accepted Accounting Principles (GAAP) and with State accounting and budgeting practices, and will also align the Capital Improvement Projects with the County's budgeting process. |
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Is the general fund affected? |
No |
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Consequences if not approved: |
The Lake Berryessa Resort Improvement District would not be in compliance with Generally Accepted Accounting Principles (GAAP) or State accounting and budgeting practices. In addition, the current approved Capital Improvement Projects would not have the appropriations to complete the work committed. |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.