HomeMy WebLinkAboutCAPITAL PROJECTS AGENDA 02-09-10Central Contra Costa San
District
SPECIAL MEETING OF THE BOARD OFD/RECTORS:
CENTRAL CONTRA COSTA ,[4/CHAFE R. A1CGlLL
SANITARY DISTRICT President
BARBARA D. I/OCKET7
. CAPITAL PROJECTS COMMITTEE Pretident Pro Tem
GERALD R. LUCEY
,t1AR/O ,N. ,t/EN£S/,V/
Chair McGill JAMES A, NE/EDLY
Member Menesini PHONE: (925)118-9500
FAK (915) 676-72/!
Tuesday, February 9, 2010 un~iu~ ronlrn/cnn nrv
3:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
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® Recycled Paper
Capital Projects Committee
February 9, 2010
Page 2
1. Call Meeting to Order
2. Public Comments
*3. Recommended Increase in General Manager Authority for Equipment Purchases
- Ratcliff
*4. Review of Internal Audit of Capital Improvement Budget Allocation Process (Will
be concurrently reviewed with Budget and Finance Committee) -Chester
*5. Preview of 6-month status report on 2009-10 Capital Improvement Program (to
be presented to full Board on February 18) -Farrell
6. Status report on preparation of 2010-11 Capital Improvement Budget and 2011
Capital Improvement Plan -Farrell/Pilecki
7. Discussion of strategic projects -Pilecki and staff
Review of key upcoming projects in 2010/11
Wet Weather Bypass Project
Seismic Retrofit Program
Treatment Plant Condition Assessment/Asset Management
• Status of major' on-going construction projects
Standby Power
Solids Handling
CSO Administration/Warehouse Building
8. Adjournment
* Attachment
3,
Central Contra Costa Sanitary District
February 5, 2010
TO: CAPITAL PROJECTS COMMITTEE
VIA: JAMES KELLY, GENERAL MANAGER
RANDALL MUSGRAVES, DIRECTOR F ADMINI~SgT~RA~TION /~M
FROM: ANN FARRELL, DIRECTOR OF ENGINEERING ~V
DEBBIE RATCLIFF, CONTROLLER a/L
SUBJECT: REVISED DOLLAR LIMIT FOR EQUIPMENT BUDGET
At the Capital Projects Committee meeting on March 18, 2009, Chair McGill asked
whether the $5,000 limit for equipment items that are included in the Equipment Budget
could be raised for future equipment budgets. Member Lucey concurred that staff
should investigate this request for the next equipment budget preparation. Staff
reviewed the issues surrounding this request and is bringing this information back to the
current Committee for discussion.
There are no legal requirements for minimum dollar limits for items to be included in an
equipment budget. However, internally, the District has seta $5,000 minimum limit for
capitalizing equipment items. A survey was done of other public agencies, and the most
often used capitalization limit is $5,000. Staff recommends continuing to use $5,000 as
the base capitalization limit. This means that equipment costing less than $5,000 will be
charged to an Operation and Maintenance Account and items greater than $5,000 will
be charged to a Capital Budget Account. This process does not directly impact staff
authority limits.
The General Manager has the authority to approve District projects up to $15,000, but
currently can only approve Equipment Budget items up to $5,000. Capital Projects that
include equipment purchases are capitalized at the completion of the project and are
not included in the Equipment Budget. It would be consistent to increase the General
Manager's Equipment Budget authority to $15,000 without specific approval of the
Board.
Staff recommends increasing the equipment budget limit to items of $15,000 or more.
The Equipment Budget would continue to include a separate section for itemized
vehicle purchases over $15,000. Any equipment over $15,000 would continue to be
included with separate write-ups justifying the expense. There would be a separate
lump sum dollar amount included in the budget by each department for all other
equipment purchases over the capitalization limit of $5,000. These items would be
approved by the General Manager and more detailed information would be developed
as needed at the time of purchase.
H:\Executive Assistant Directory\Committee Items\Capital Projects Committee\2010\Equipment Budget.doc
4.
Central Contra Costa Sanitary District
February 4, 2010
TO: BOARD BUDGET AND FINANCE COMMITTEE
BOARD CAPITAL PROJECTS COMMITTEE~,pp,,,
VIA: JAMES M. KELLY, GENERAL MANAGER Gr"-I
DEBBIE RATCLIFF, COMPTROLLER,~jL
FROM: ANN E. FARRELL, DIRECTOR OF ENGINEERINGu~"J
GAIL CHESLER, ASSOCIATE ENGINEER
SUBJECT: INTERNAL AUDIT OF THE CAPITAL IMPROVEMENT BUDGET
ALLOCATION (CIBA) PROCESS
INTRODUCTION
Recently, an internal audit of the process by which staff allocates funds to capital
projects, the CIBA process, was completed. The audit resulted in some useful
recommendations on improving and streamlining the process. It also made some
recommendations that staff felt would not improve the process and therefore are not
planning to implement. In addition, there are some recommendations that will not be
implemented because the consultant did not fully understand our process. Because the
report is lengthy and sometimes difficult to follow, staff has prepared this brief summary
memo to place the audit in context and provide examples of recommendations that staff
will be adopting and those that staff will not be implementing.
BACKGROUND
The Central Contra Costa Sanitary District (District) has developed a very detailed
capital budgeting process which provides for input and guidance from the Board of
Directors at many points in the development of a project. Each year a Capital Budget
and Plan is developed and brought to the Board for approval. The Capital Budget
includes four programs: Treatment Plant; Collection System; General Improvements
and Recycled Water. A budget is established for each program for the fiscal year and
approved by the Board. A list of projects are also included and approved by the Board.
After Board approval, staff has the authority to allocate funds within the program to the
identified projects as staff determines will best meet the needs of the District. The total
program budget cannot be exceeded without going back to the Board for an additional
authorization; however, money can be moved between projects under staff authority.
The project budgets in the document are identified at a very early stage of the project
and are guidelines, not fixed budgets. The budgets become fixed when a project goes
into the construction phase and a construction project is awarded. At that time the
Board awards the project and fixes a budget. The General Manager can authorize
funds for project budget overruns up to 15% of the authorized budget. If the overrun.
exceeds 15%, a position paper must go to the Board for approval. It is extremely rare
that a project will be overrun such that a position paper must go to the Board. All
project budgets are reported to the Board when projects are closed.
CAPITAL BUDGET CONTROL BY THE BOARD OF DIRECTORS
The Board has many opportunities for approvals which provide checks and balances to
the Capital Budgeting process. These include:
• Authorize CIB Program Budgets in June
• Authorize Supplemental Program Funds during the fiscal year if needed
• Award Construction Projects > $15,000 and set Project not to exceed Budgets
• Authorize Construction Change Orders > $50,000
• Authorize Consultant Contracts > $50,000
• Authorize Revisions to Consultant Contracts > 15%
CAPITAL IMPROVEMENT BUDGET ALLOCATION PROCESS
Once the Board has authorized program budgets, then moneys can be allocated to
specific projects. The Capital Improvement Budget Allocation (CIBA) process is an
administrative process set up to track allocations to ensure that the total Board
authorized budget for each program is not overrun. A representative CIBA package is
attached for reference. Allocations are to be made in a timely manner to ensure that
project allocations and program authorizations are not exceeded. However, in practical
terms, it is typically only late in the fiscal year that program allocations begin to
approach the amount authorized by the Board. At that time, staff has on occasion
needed to go back to the Board for an additional authorization in order to fund all of the
projects in a given program.
The CIBA process is also a useful tool for tracking project allocations as compared to
the original budgets established in the CIB document. However, changes in priorities
during the fiscal year may result in allocations to a given project being significantly more
or less than shown in the CIB document. It is not the intent of the CIBA process to be a
control tool for managing individual project expenditures. This control is provided by the
staff authority constraints which are dictated by the Board authorities listed above.
The purpose of the internal audit of the CIBA process was to identify opportunities for
streamlining and to ensure that the CIBA approval process is consistent with staffs
authority to allocate funds. CIBAs allocate money to projects after they have been
approved by the Board, and as such are an administrative process.
SUMMARY OF INTERNAL AUDIT FINDINGS AND STAFF RESPONSE
The 2-page listing of a subset of the recommendations by the consultant is attached.
Four representative items are listed:
- Recommendation to incorporate information normally part of the CIBA memo into
the CIBA spreadsheet form and deleting the requirement for the memo in most
cases. This recommendation will be implemented.
- Recommendation to obtain all required CIBA approval signatures electronically,
either through electronic signature or an emailed approval. It is possible that as
technology advances, the strategy of electronically routing and approving CIBAs
could be used. Technology at the District is not yet at that point.
- .Recommendation for additional reports from Accounting to assist the project
manager in monitoring the fiscal progress of his/her project. Management
declines to incorporate this recommendation. Existing reports are sufficient.
- Recommendation to eliminate the need for an updated cashflow plan as part of
the CIBA package. This recommendation is counter-productive. This updated
information is especially important for large projects and the cashflow update
process is not time-consuming.
The internal audit of the CIBA Process will be reviewed with the Budget and Finance
Committee at the February 16, 2010 meeting. This report was included in the Capital
Project Committee agenda for informational purposes.
The District has a culture of continuous improvement. On an ongoing basis we evaluate our
processes to see if changes need to be made to improve these prdcesses. Periodically we ask a
consultant to audit our processes and provide recommendations for improvement. We understand
that these consultants do not understand all the internal workings of the District and consequently
some of the recommended process changes will not be appropriate to implement. Below are a subset
of the consultant's recommendations and District responses for changes to our CIBA processing
procedure. (The entire list of Recommendations and Responses comprises 8 pages and is available.)
1. Recommendations related to Streamlining CIBA Request Documents
A. Management could consider incorporating information previously included in the CIBA Memo
directly into the CIBA Form by adding fields to note if there have been any changes to the
project scope, budget or schedule, as documented in either the CIB or Board approved
Position Paper (contingency projects). In the case of a contingency project below $25,000, a
memo or similar documentation could be required; as there.would not be a position paper. All
required approvals could then be documented directly on the CIBA form.
Management Response: The CIB team intends to revise the CIBA`form to incorporate fields to
allow description of changes or augmentation in the project that have arisen since the Capital
Budget document was created. The signatures will only be needed on this document. A CIBA
memo will still be required for contingency projects funded up to $25,000, which is the Gerieral
Manager's delegated prerogative to fund.
2. Recommendations -CIBA approvals -
A. Management could define and document the-types of errors that can be corrected by the CIBA
Coordinator (or other approver) versus the errors that require the CIBA request to be returned
to the Project Manager. This could include specific dollar thresholds or percentage variations
for monetary variances. For minor errors; the CIBA could be corrected and sent forward for
final approval •
,.
Management Response: The CIBA Coordinator makes no changes in dollar amounts on the
CIBA unless it is clearly a typo or error. Changes are limited to textual additions or minor
typographical errors, such as an error in the project number. These are discussed with project
managers and re-signed by any level of authority needed. Alf changes to funding would
require'a re-routing of the CIBA. This fact could be documented in the revised Procedure:
B. Management could consider implementing a dollar threshold that determines which process
the Project Manager must follow for the fund allocation. A project below the dollar threshold
which was already approved by the Board could.follow an abbreviated process with fewer
approvals, forms, etc.-
Management Response: In the life of nearly all projects, a maximum of four,ClBAs are
needed. (1) The initial funding to start the project and determine its complexity and
components, (2) A second CIBA wilfbe used to carry though the planning and desigh phases.
The first and second CIBAs can be' combined if the project is well understood at its
outset, (3) a third CIBA is used for the Board-approved award of the Construction
contract, and (4) a close-out CIBA ends the project, returning un-used funds to the
Program. The fourth CIBA is typically prepared by the CIB coordinator. It is unclear the
appropriateness or thresholds to be used to abbreviate this process with so few
iterations. Perhaps the initial CIBA for a project that appears as being initiated in the
fiscal year at hand if the amount is the same as stated could be a candidate for ari
abbreviated process: It might.be more troublesome to figure which route an individual
CIBA needs to travel than simply to route.all of them in standard fashion.. _
3. Recommendations-documenting"approvals electronically. ~~.
A. Management could consider obtaining all required. CIBA approvals electronically, either.through
electronic signature or.an emailed approval.. By streamlining the CIBA Form,and the required.
attachments, the CIBA packet could be easily viewed as an email attachment. This would allow
the process to move faster.and would reduce the likelihood of experiencing.significant delays or
losing a CIBA packet. Potentially, the Project Manager could be copied on each request for
approval and associated response; allowing them to maintain visibility of;the CIBA within the
approvatprocess,and follow up with non-responsive,approvers, as:needed. ,
_: ,. _ ,. ,
,Management Response: It is possible that as technology advances, the strategy of. electronically.
routing and approving CIBAs could be used: Technology at-the District is not yet at that point. In
addition, many of the reviewers.. prefer a paper CIBA. package so that they~can review whatever
components are of most interest and concern to them. As far as allowing the project manager to
..know where his/her: CIBA package_is, the first few signatures are within his/her immediate chain of
command-people that he/she sees on a daily basis; The CIB coordinator is available. for
information as to whether a CIBA has reached her.:Subsequent review and signatures by-
Management typically occur within a very few days; the GM's secretary tracks documents arriving
for his signature.
4. Recommendations -Monitoring project spending~.~ . .. -. • .~-
A: In addition to the. monthly report of projects requiring an additional allocation, Accounting could
generate a report of projects with balances.below;adeflned threshold that may indicate the need
to complete another CIBA request to allocate additional funds. Management-could consider using
measurements such as run rate and percent of allocated funds spent when determining the
parameters for projects.to include in;this report. This will assisf iri identifying project funding needs
befo~ethe project exceeds its`allocation:
B. Management could. consider implementing a process in which. accounts payable notifies the
Project Manager each time ari invoice is paid against an account which exceeded its allocations.
This could be in the form of an email;<and.could.highlight the amount spent.over the allocation
requirement to complete another, CIBA immediately. Members of management could be copied on
the email to communicate which projects are exceeding the allocation and provide notice that the
information was communicated to.the Project Manager. .. _.
Management Response (A-B): A=master report is already sent each month, showing alf projects'
allocation status and a specific report is sent showing projects in need of an allocation. In
addition, a new project report has been created that lists all expenditures for the month with
names of all staff charging to a project, as well as specifics of invoices. paid from that project's
budget. This- report wasmade available to project managers in September 2009, and. by using it
the PM is able to monitor.use of funds for his/herproject. The report also indicates the amount of
funds remaining that have been allocated but not yet spent. These reports. are viewed by
Management to be sufficient.,;.
• ~ ~ •
-P~' C ~ 3A ~~-~-t~qc E
CCCSD ' ~ j ~ ~ ~ ~s
Capital Improvement Budget Allocation Request (CIBA)
(Project number 5951
~ . Source of funds: unallocated X contingent
~
toject title
(zs char. or less)
a
Miner Road Trunk Sewer
'
City of Concord'(Y or N) N '
This allocation amt $84,000 Cost center 0250 470
Date September 4, 2009 Project manager Munawar Husain
Total project cast
((A)from the CIB/ ~I j nl
~r ~'~l tTQ~ I Project cost this FY
((C)from the CIB / ci.. I of
~g7
gOD. I~ ~~ ~
~$'~
(B)PM's current plan) ~~. ; $644 0~~ (D)PM's current plan) r
/
Program CS Percent expansion 0
Subprogram Ren Initial Additional X Closeout
What does the CIB show as your planned allocation for this FY? $ 7, DCpr DOc~
What amount have you already allocated during this FY? -~
Itemized list for this allocation - a e 2 ma be used if more line items are needed
6-digit
ro ect # Element-object Description Sum of prior allocations ,This allocation Resulting
amount
5951 CA 01-50 Project Management $5,000 $15,000 $20,000
5951 CI , 01-50 ;': ' .~ ~ Inspection , ~ _:~ ~~ $0 , ` - . $35,000 ~ • $35,000
5951 CR 20-10 Contractor' ' ~ - ` `~ $238,797, $34,000 $272,797
.._ .. $0
$0
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$0
All other sub-accounts $315,759'
~ $315,759
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dete 9,556. ; ,
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$84000 $643;556
Remarks: _ .. ... .., ... .... _ .. ~ .
Attachments: tBICIBA memo X ; t°tCIB Write-up. t`lMonthly cashflowestlmates X I°lPosltlon paper _; I°ICap Prof Sum Rpt_
(1) R quested by: _ •, (2) Revi we b :' . ' Y •- ~ (3~ Reco rn ~nded by: '
Project Manager (Signature & Date) slon Mg (Ignature & Date) ~ ~ ~ Departure Director
.,. : , ..., ,, ... r::.;:; ..
(4) To be tom leted b CIB Coordinator .~~
CIB est this task
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(7) To be completed ~' ~:,
by Accounting Date Accounting notified ' ~ Date closed account -
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Central Contra Costa'Saniaary District
September 9, 2009
File: 5951.54.1 ~ ..
T0: ~ JAMES M. KELLY
VIA: ANN FARREL
TAD PILEC '~
ALEX ROZUL
~. FROM:. MUNAWAR HUSAIN~,~/6~
SUBJECT: ALLOCATION OF FUNDS FOR PROJECT BUDGET OVERRUN,
MINER ROAD TRUNK'SEWER IMPROVEMENT PROJECT,
. DISTRICT PROJECT 5951 -
SUMMARY
The project expenditures have been greater than expected: Staff recognizes
that additional funds will be. required to complete the project.. Attached is the
CIBA request that will revise the budget and allocate funds to the proper control
numbers. _. . .
BACKGROUND AND SCOPE OF WORK
The project was initiated to rehabilitate 3,870 linear feet of 15-inch diameter
sewer lines in Miner Road, Orinda. The work involved close cooperation with the
City of Orinda.and East Bay Municipal, Utility.District (EBMUD), which was also
constructing,a pipeline along Miner Road just north. of CCCSD's pipeline work.
During the construction phase, unanticipated additional work and costs were
identified:- Actual work at various locations was different than expected.-
Additional point repair work was performed between Sta. 21 +14 and Sta. 21 +86
on Miner Rtiad: _ This work included excavation, and removal and disposal of
. existing. pipe. Approximately 20 feet of existing pipe was AC pipe. Work
included proper handling and disposal of this pipe. New 15-inch PVC SDR 26
replacement pipe was installed at the same location, with no sags between
stations. Backfill, compaction, and pavement restoration were completed in this
work area. Similar point repair was also completed between Sta. 4+70 and
Sta. 5+00, including excavation, removal, and disposal of existing pipe and
i-1
. _l
N:IPESUPICONST1District Projects159511Allocation of Funds Memo.doc
installation of new 15-inch PVC SDR 26 pipe with no sags between stations.
Negotiated cost of.4his work was $50,000. Additional cleaning was also
necessary to remove extensive root growth in the existing lines. The cost of this
work was $6,000.
SCHEDULE
Construction began:in July 2009, and work was completed in late August 2009. .
BUDGET .
The total project budget is the Collection System Program, DP 5951. This
allocation will bring the total allocated budget to $644,000 for the project.
Board-approved District Project 5951 total budget at award . $560,000
General Manager's allocation of funds for project
budget overruns 15% of $560,000 Add. ~ 84 000
Total Project Budget ~ ~ ~ $644,000. ;
~. .~ RECOMMENDATION
Approve the allocation of $84,000 from the Collection System Program to
complete the Miner Road Trunk Sewer Improvement Project, District.,.
Project 5951. ~ ~ ~.~ :'~ .:. .
.. •~ ,
N:1PE$UPICONS11District Projecls15951Wllocation of Funds Memo.doc
Miner Road,. Orinda,. TR 02-200
Project Manager, Department/Division:
Tom Godsey, Engineering/Capital Projects
Project Description:
Renovate approximately 4,000 feet of existing 15-inch trunk sewer line and install
passive overflows to. relieve a parallel 18-inch sewer of wet weather capacity. This
project is located in Miner Road and Lombardy Lane. The design will evaluate various
renovation methods to minimize the construction impacts,to the public. Construction is
expected to start in FY 2008-09 and be completed in FY 09-10.
Project Location:
Miner Road and Lombardy Lane, Orinda
Project Schedule and Cost: '~ ~ ~ ,
Start Date Completion Date. .Total Cost
Planning ~ - - $0
Design 07/01/2006 05/01/2009 $463,000
Construction 05/01/2009 '''12/31/2009` $987,000
,~: Total:: ` . ' $1,450,000= - , -
~ Estimated expenditures this FY are: $987,000. ~ . ,
Anticipated Allocations this FY ar•e: $1,000,000 ,
Project Fiscal Year AllocationlExpenditure Table:
Project Tithe/Subprogram: Miner Rd Orinda, Tr 02-200 / 3
Projecl Number/Filename: 5951 / trunk_miner
Project Managen9o Expansion: Seitz / 10
2008-07 2007-08 2008-09 2009-10 2010-11 2011-12
A. Current Carryover 0 439,000 287,000 (13,000) 0 0
B. Anticipated Allocations 450,000 0 0 1,000,000 0 0
C. Authorized this Year 450,000 439,000 287,000 987,000 0 0
D. Estimated Expenditures (11,000) (152,000) (300,000) (987,000) 0 0
E. Estimated Carryover 439,000 287,000 (13,000) 0 0 0
_.
1
FY 2009-10 CIB/2009 CIP CS - 71
Edit Expenditures Data
Finance(EDIT~: Miner Rd Orinda, Tr 02-200, 5951
Date 'of initial allocation: 1/22/2007
N''TE: This is a view ONLY screen
-' Expenditures: Actual
Year Month (shown in grey) & Fiscal year
Estimates (round to totals
nearest $1,000)
otal ex enditures rior fiscal ears: 162,58
2008-2009 Jul 1,as7
Aug 2.321
Sep 272
OCt 301
Nov 5,788
Dec 6,368
Jan 2009 2,365
Feb 12,873
Mar 8,427
Apr 14,581
May 8,803
Jun 2;749 rte',.;,?•;
f-^?9-2010 Jul 7,000
...
Aug
317,387
Sep 84,300
Oct 6,000
Nov 0
Dec 0
Jan 2010 0
Feb 0
Mar 0
Apr 0
May 0
Jun 0 ~ ~"' .., .. •.,
2010-2011 Jul 0 44,687
Aug 0
Sep 0
Oct 0
Nov 0
• Dec o ~ 4 5B
'roject Total to Date: ~-~
Page 1 of 1
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