Title
Consider recommendation from the Finance/Administrative Committee to approve amendments to the 2016 EAHCP Operating Budget, increasing the appropriation for the Regional Water Conservation Program by $2,827,750; and for the Restoration-Riparian Zone and Native Vegetation project on the Comal River by $220,000.
Body
RECOMMENDED MOTION:
Move the board approve amendments to the 2016 EAHCP Operating Budget, as described, increasing total program funding from $18,302,448 to $21,240,198.
SUMMARY:
The purpose of this agenda item is for the Board to consider a Finance/Administrative Committee recommendation to approve two amendments to the 2016 HCP Operating Budget from $18,302,448 to $21,240,198, an increase of $2,937,750. The need for these budget amendments are described earlier on this agenda and summarized below.
Regional Water Conservation Program (RWCP). To fund the first year of a five-year contract with the San Antonio Water System (SAWS) to conduct leak repair, a budget amendment is required to increase the RWCP budget from $1,813,000 to $4,640,750; an increase of $2,827,750. This increased appropriation will reduce the EAHCP Reserve Balance by $2,827,750. While this contract with SAWS, along with the EAA’s other conservation contracts exceeds the projected annual costs identified in Table 7.1 of the EAHCP document, the total amount spent over the life of the EAHCP for RWCP will be within the total 7.1 estimate.
Restoration-Riparian Zone and Native Vegetation project on the Comal River. The total cost of the qualifying bid received by the City of New Braunfels for this bank stabilization project was approximately $870,000, representing a $220,000 increase from the initial cost estimate. The EAHCP Implementing Committee voted to fund this increase in project cost over two years by reducing the scope and associated funding of other EAHCP tasks in both 2016 and 2017. Even with these funding reductions, the increased appropriation for bank stabilization in 2016 will reduce the EAHCP Reserve Balance by $110,000. The second year of reductions should serve to replenish the EAHCP Reserve Balance in 2017.
At the January 26 meeting, the Finance/Administrative Committee voted to recommend the board approve amendments to the 2016 EAHCP Operating Budget, increasing the appropriation for the Regional Water Conservation Program by $2,827,750; and for the Restoration-Riparian Zone and Native Vegetation project on the Comal River by $220,000. A fund summary depicting each of the amendments is attached to this summary.
STRATEGIC PLAN REFERENCE:
This agenda item supports the EAA’s policy direction as set forth in the EAA 2016-20 Strategic Plan: Goal A, Sustain Federally Protected Aquifer-Dependent Species.
FISCAL IMPACT:
The combined impact of these amendments will be to reduce the EACHP reserves by $2,937,750 in 2016.