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HomeMy WebLinkAboutCAPITAL PROJECTS ACTION SUMMARY 02-06-07 Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, CA 94553-4392 (925) 228-9500 . www.centralsan.org CAPITAL PROJECTS COMMITTEE ACTION SUMMARY Chair Hockett Member McGill Tuesday February 6, 2007 3:00 p.m. Third Floor Executive Conference Room Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, CA PRESENT: Barbara Hockett, Michael McGill, Jim Kelly, Ann Farrell, Bill Brennan, Tad Pilecki, Curt Swanson, Ba Than, Gail Chesler 1. CALL MEETING TO ORDER Chair Hockett called the meeting to order at 3:00 p.m. 2. PUBLIC COMMENTS None. 3. OPEN DISCUSSION OF PROJECTS OF INTEREST Tad Pilecki and Ba Than presented a high-level capital projects update. They noted that this year's accomplishments to date and projected expenditures, include $18 million for 11 recently completed projects, $17.4 million for 7 ongoing construction projects, four new projects to construction for an estimated cost of $ 3 million, and several new projects under design, including the A-Line Interceptor, Primary Sedimentation Tanks, and Mercury Removal. A more detailed discussion was held on the wet weather protection project, and a handout with the current status of discussions with County Flood Control (attached) was reviewed. A "., Recycled Paper Capital Projects Committee February 6, 2007 - Page 2 - 4. OVERVIEW OF CAPITAL BUDGET PROCESS Ann Farrell reviewed the major milestones of the annual Capital Budget Process: . November workshop - sets Capital Budget and Plan expenditure targets . January workshop - examines impact of Capital Budget and Plan on rates and confirms expenditure targets . Detailed Capital Budget and Capital Plan - developed November-March for distribution in late March/early April . April workshop - reviews detailed Capital Budget and Capital Plan Curt Swanson reviewed the history of the CCCSD Capital Budgeting Process (attached), which evolved and became more formal over the years culminating in the first annual Capital Budget in 1987. 5. REVIEW OF 2006-07 CAPITAL BUDGET AND 2006 CAPITAL PLAN FOR FORMAT AND EXAMPLE CONTENT Ann Farrell reviewed the Highlights of the CCCSD Capital Program (attached) and referred to some illustrative examples in the 2006-07 Capital Budget and 2007 Capital Plan. Ms. Farrell also discussed the need for an additional authorization of approximately $4.5 million in funds by the Board for the Treatment Plant program. A position paper regarding this authorization is scheduled for the February 15, 2007 Board meeting. The need for the additional authorization was caused by three factors: 1) $1.8 million more than budgeted in allocations from the previous fiscal year carried over, creating a deficit in funds for new allocations of $1.8 million (see attached table); 2) several new projects have been created and there is not adequate contingency to fund them; 3) several projects are being awarded in late 2006-07 for construction in 2007-08 and the funds must be allocated in 2006-07 in order to award the contracts. 6. RECAP OF NOVEMBER 2006 WORKSHOP ON PRELIMINARY 2007-08 CAPITAL BUDGET AND 2007 CAPITAL PLAN Ann Farrell asked if there was any interest in a recap of the November 2006 workshop, but in the interest of time the Committee members declined. However, both Board Members McGill and Hockett expressed an interest in having the Committee meet more often so that they could better understand the capital process and be kept informed in more detail of the projects being pursued at any given time. Ann Farrell replied that the next Capital Projects Committee meeting would be to review the Equipment Budget and is scheduled for March 20. Staff will work to schedule an additional Committee meeting to review the draft 2007-08 Capital Budget and 2007 Capital Plan in more detail before taking Capital Projects Committee February 6, 2007 - Page 3 - the document to the full Board at the April 12 Capital Workshop. The frequency of future Committee meetings will be discussed in more detail at the next Committee meeting. COMMITTEE ACTION: The Committee requested staff to schedule more frequent Committee meetings to allow the Committee to review capital budget and plan issues as well as specific projects and to provide oversight and direction before major items are taken to the full Board. 7. ADJOURNMENT - at 5 p.m. UPDATE - PLANT WET WEATHER PROTECTION PROJECT Circa 1992-1993, the Contra Costa County Water Conservation and Flood Control District (CCCFCD) applied for a 404 permit from the U. S. Army Corp of Engineers (CaE) to dredge Lower Walnut Creek. The U. S. Fish and Wildlife and California Department of Fish and Games objected to the dredging activities, therefore the CaE refrained from issuing a dredging permit to CCCFCD. The reason for the objection was destruction of wetlands due to dredging activities. As a result, CCCFCD has consciously decided not to dredge the lower portion of Walnut Creek and has focused its attention upstream. During the summer of 2006, CCCFCD dredged a portion of the upper reaches of Walnut and Grayson Creeks. Utilizing the revised creek profiles from this past summer's dredging activities, CCCFCD is currently working with the CaE to re- evaluate the water surface elevations in Lower Walnut and Grayson Creeks under various storm events. CCCFCD is also re-evaluating its position with respect to dredging the lower reaches of Walnut Creek this year and how to work with the CaE to obtain the necessary permits. Staff will continue to work closely with CCCFCD on the revised water surface elevations and how this will impact the treatment plant facilities. In addition, Staff will monitor CCCFCD's effort to dredge the lower reaches of Walnut Creek. The Board will be kept informed of future developments. C:\DOCUME-1~freier.001\LOCALS-1\Temp\CCCFCD February 6 2007 _.doc Created on 2/6/2007 1 :28 PM Before 1980 1981 1982 1984 1987 1996 1999 2003 A Short History of Capital Budgeting Central Contra Costa Sanitary District February 6, 2007 Capital project planning by Bill Dalton Board of Directors authorizes sewer construction funds for individual projects or project phases. Engineering Department prepares project status summary and Sewer Construction Fund cash flow analysis. Board of Directors authorizes sewer construction funds for individual projects or project phases. Preparation of Annual 10-year Capital Improvement Plan (CIP). Creation of the Planning Division within the Engineering Department (Jim Kelly is first Division Manager). Board of Directors directs staff to prepare an annual capital budget. Preparation of first Capital Improvement Budget (1987-88) Board of Directors authorizes funds for Treatment Plant, Collection System, & General Improvements Programs. Staff allocates program funds to specific projects as Listed in the Capital Improvement Budget (CIB). CIP/CIP Program categories expanded from three to four. Recycled Water Program is added. Preparation of first two-year CIB (FY 1999-2000 & 2000-01) Return to one-year CIB in fiscal year 2003-04 HIGHLIGHTS OF THE CCCSD CAPITAL PROGRAM (2-6-07) BOARD AUTHORIZES TOTAL ANNUAL BUDGET FOR EACH OF THE FOUR PROGRAMS* OF THE CAPITAL BUDGET . Projects must be identified in the Budget document or funded from contingency. . Staff has flexibility to adjust project budgets within each program. . Funds for entire project phase must be allocated at time of signing agreement or construction contract award, even if execution will take multiple years. . Total amount authorized is significantly higher than budgeted annual expenditure because projects bridge multiple years STAFF MAKES ALLOCATIONS TO INDIVIDUAL PROJECTS IN ACCORDANCE WITH AUTHORITY LIMITS DELEGATED BY THE BOARD BOARD HAS CONTINUED APPROVAL ROLE FOR: . Consultant agreements over $50,000 . Construction contracts over $15,000 . Project overruns in excess of 15% of project budget at time of construction award . Construction change orders over $50,000 . Contingency projects over $25,000 . 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