TO: Members of the Governing Board
FROM: Christopher Silke - District Engineer
REPORT BY: Sarah Geiss - Supervising Staff Services Analyst
SUBJECT: Increase Fiscal Year 2025-26 Appropriations
RECOMMENDATION
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Approve a Budget Amendment increasing appropriations in the Napa Berryessa Resort Improvement District (District) operations budget from the reimbursement of USDA Reserve Funds in the amount of $250,000. (Fiscal Impact: $250,000; Napa Berryessa Resort Improvement District Fund; Budget Reallocation; Discretionary)
[4/5 vote required]
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BACKGROUND
The SCADA System Upgrades/Replacement Project (Project 25046) was awarded in June 2025 with all work completed to date occurring in fiscal year 2025-26. It was initially funded using $250,000 of the NBRID Operations fund balance; however, the closing documents for the USDA loans that were issued to the District in 2013 for capital improvements, include a stipulation for the District to contribute $112,033 ($58,966 sewer, $53,067 water) annually to a depreciation reserve for short-lived assets. As the current SCADA system was a component of the USDA water and sewer projects and it is near the end of its useful life and also putting both systems at risk of violations due to limited monitoring capability, staff believes the depreciation reserves are a better funding source for the SCADA project and the operations fund balance should be reimbursed. Reimbursement of these funds will improve current fiscal year cash flow and allow continued payment of operations invoices through June 30, 2026, including a major repair to a sewer gravity main between Noah Ct and Steele Canyon Road.
To date approximately $896,264 ($471,728 sewer, $424,536 water) has been deposited into the water and sewer USDA Reserve Funds since collection of the annual contribution from the operations budget began in fiscal year 2016. Approximately $235,000 and $195,000 has been used to fund the following USDA related asset replacement projects:
Sewer Projects
a) StormBLOX treatment unit transfer pump replacement
b) Polymer feed system rehabilitation
c) Replacement of the membrane cassettes used for sewer treatment
d) Replacement of two permeate pumps used for sewer treatment
e) Replacement of pumps and appurtenances used in the influent and overflow basins
f) Replacement of Instruments and Monitoring Equipment at the sewer plant
g) Replace Rotating Assembly for Gorman Rupp Effluent pumps at sewer plant
Water Projects:
a) Roberts Filter blower rehabilitation.
b) Installation of Variable Frequency Drives (VFDs) at the raw water intake pumps.
c) Restoration/rehabilitation of both steel filter tanks used for water treatment.
d) Replacement of water plant process control and monitoring equipment.
e) Replacement of two pump motor starters
Accounting for the above, the current balance of the USDA Reserve Funds are $349,000 in the USDA Water Res Project (Project 16023) and $370,000 in the USDA Sewer Res Projects (Project 16022).
Requested Actions:
1. Approve a budget amendment for the following (4/5 vote required):
a. Increase appropriations by $250,000 in the Operations Division (5240000) for Maintenance and Professional Service expenses incurred on the USDA SCADA project, offset by a transfer-in from two USDA Water Reserve Projects, Projects 16022 and 16023; and
b. Increase appropriations by $250,000 in the Capital Improvement Division (5240500) to transfer-out from two USDA Water Reserve Projects, $125,000 from Project 16022 and $125,000 from Project 16023, offset by the release of the restricted depreciation reserves.
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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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of the budget amendment will allow the District to continue paying invoices for operations and maintenance activities through the end of fiscal year |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Approval of the proposed Budget Amendment will reimburse the operations budget fund balance by $250,000 and provide additional funding capacity for ongoing USDA water-related project expenses. |
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Consequences if not approved: |
If the budget amendment is not approved, operational expenses are anticipated to exceed budgeted appropriations before the end of the fiscal year |
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Strategic Initiative: |
Build healthy, connected communities |
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.