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Home My WebLink About05.a. Public hearing to adopt next fiscal year's Capital Improvement Budget and 2012 Ten-year Capital Improvement Plan5.OL. CENTRAL CONTRA COSTA SANITARY DISTRICT CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON THE 2012 -13 CAPITAL IMPROVEMENT BUDGET AND THE 2012 TEN -YEAR CAPITAL IMPROVEMENT PLAN SUGGESTED AGENDA JUNE 7, 2012 Request staff presentation. II. Conduct public hearing: A. Open public hearing. B. Receive public comments. C. Request staff response, as appropriate. D. Close public hearing. III. Board deliberation to consider approval of the 2012 Ten -Year Capital Improvement Plan, and approval and adoption of the 2012 -13 Capital Improvement Budget for inclusion in the overall 2012 -13 District Budget, NAENVRSEC \Position Papers \Millier\2012 \6- 7- 12\Agenda - CIB -CIP Public Hearing 6 -7 -12 FINAL.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 7, 2012 Subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2012 -13 CAPITAL IMPROVEMENT BUDGET AND THE 2012 TEN -YEAR CAPITAL IMPROVEMENT PLAN; APPROVE THE 2012 CAPITAL IMPROVEMENT PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2012 -13 DISTRICT BUDGET Submitted By: Earlene Millier, Engineering Assistant III REVIEWED AND RECOMMENDED FOR BOARD ACTION: E. Millier Initiating Dept. /Div.: Engineering /Environmental Services T. Godsey J. MiVarn to-Mllls Ann E. Farrell General Manager ISSUE: The Board of Directors has established June 7, 2012, as the date for a public hearing on the 2012 -13 Capital Improvement Budget (CIB) and the 2012 Ten -Year Capital Improvement Plan (CIP). Board approval of the CIP and approval and adoption of the CIB for inclusion in the Fiscal Year (FY) 2012 -13 District Budget is requested. RECOMMENDATION: Conduct a public hearing to receive comments on the CIB /CIP and approve the 2012 CIP. Approve and adopt the CIB for inclusion in the FY 2012 -13 District Budget. Approval and adoption of the budget and plan will establish the Board of Directors' independent finding that these documents are exempt from the California Environmental Quality Act (CEQA) and that the District either has or will produce appropriate CEQA compliance documentation prior to undertaking any project identified in these documents. FINANCIAL IMPACTS: Approval of the FY 2012 -13 CIB and 2012 CIP is a necessary step to implement the capital program. Approval will include an estimated carryover from 2011 -12 of $11,349,000 and an additional authorization of $29,601,000 from the Sewer Construction Fund; resulting in a total FY 2012 -13 Board authorized funding level of $40,950,000. This will allow expenditures to continue on the District's Capital Improvement Program. ALTERNATIVES /CONSIDERATIONS: The Board could direct staff to modify the CIB and /or CIP to reduce or increase the planned capital expenditures. The Board could also defer approval to a later date. These alternatives are not recommended. BACKGROUND: The CIP provides the basis for project prioritizing and scheduling, and long -range financial planning. The CIP also provides the framework for analyzing different capital program funding scenarios. The 2012 CIP covers the ten -year period N: \ENVRSEC \Position Papers \Millier\2012 \6- 7 -12 \PP Conduct Hearing FY 12 -13 CIB FINAL.doc Page 1 of 4 POSITION PAPER Board Meeting Date: June 7, 2012 subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2012 -13 CAPITAL IMPROVEMENT BUDGET AND THE 2012 TEN -YEAR CAPITAL IMPROVEMENT PLAN; APPROVE THE 2012 CAPITAL IMPROVEMENT PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2012 -13 DISTRICT BUDGET from FY 2012 -13 through FY 2021 -22 and includes expenditures totaling $358 million (2012 dollars). The CIB provides a detailed presentation of the schedules and cost estimates for projects proposed for the first year of the ten -year planning period. These estimates are the basis of the request for the Board's authorization of funds for FY 2012 -13 from the Sewer Construction Fund to the Treatment Plant, Collection System, General Improvements, and Recycled Water Programs. A draft CIB /CIP was submitted to the Board of Directors on March 27, 2012. A special meeting of the Board to discuss the draft was held on April 12, 2012. It is appropriate for the Board to receive comments from the public prior to considering approval of the CIB /CIP. The Board established June 7, 2012 as the date for a public hearing to receive these comments and appropriate notices have been posted and published. Capital Budget Authorization Adoption of the CIB with the FY 2012 -13 District Budget will authorize additional funds from the Sewer Construction Fund for planning, design, and construction of capital improvement projects. The new funding authorization will include an estimated carryover of $11,349,000 from Board authorizations in previous years, and an estimated additional authorization of $29,601,000 from the Sewer Construction Fund, resulting in a total FY 2012 -13 authorized funding level of $40,950,000. These figures will be reviewed in August and a revised Table 1 will be issued if needed when actual FY 2011 -12 expenditures are known and actual carryover can be determined. The CIB document spells out Board and staff authority limits. The Board's role in the capital program is ongoing throughout the year. Specific Board approval is required for consultant agreements over $100,000, for award of construction contracts over $100,000, for construction change orders over $100,000, and for project overruns in excess of 15 percent of the final project budget established at the time of construction contract award. These authority limits were reviewed and updated by the Board in December 2011. N: \ENVRSEC \Position Papers \Mi11ier\2012 \6- 7 -12 \PP Conduct Hearing FY 12 -13 CIB FINAL.doc Page 2 of 4 POSITION PAPER Board Meeting Date: June 7, 2012 subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2012 -13 CAPITAL IMPROVEMENT BUDGET AND THE 2012 TEN -YEAR CAPITAL IMPROVEMENT PLAN; APPROVE THE 2012 CAPITAL IMPROVEMENT PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2012 -13 DISTRICT BUDGET The distribution of the recommended funding authorization to the four capital improvement programs is shown on Attachment 1. The estimated expenditures for the capital program in FY 2012 -13 are also shown in Attachment 1 and total $32,343,000. Equipment Budget The CIB includes a separate section for the 2012 -13 Equipment Budget, which totals $960,000 including a contingency allowance of $100,000. This budget includes equipment requests of $5,000 or more and itemizes those greater than $100,000. The Equipment Budget was reviewed by the Board Capital Projects Committee on March 29, 2012, and the full Board on April 12, 2012. Information Technology Budget Also included in the CIB is the Information Technology Development Plan (IT Plan) for 2012 -13. The IT Plan recommends expenditures totaling $1,095,000. The plan was developed to provide funding for needed hardware and software upgrades, network security, disaster recovery telecommunications and other needed applications. The IT Plan was reviewed by the Board Capital Projects Committee on March 29, 2012, and recommended to the full Board. Ten -Year Capital Plan The draft 2012 CIP includes $159.6 million (2012 dollars) for Treatment Plant projects (44.5% of total expenditures), $168.7 million for Collection System projects (47.1% of total expenditures), $21.3 million for General Improvements projects (5.9% of total expenditures), and $8.9 million for Recycled Water projects (2.5% of total expenditures) over the next ten years. Staff has evaluated the CIB and CIP and concluded that they are exempt from CEQA under District CEQA Guidelines Section 15262 since they are planning studies for possible future actions, which the District has not approved, adopted or funded, and the outcome of these tasks will not have a legally binding effect on later activities. Approval of the budget and plan will establish the Board of Directors' independent finding that these documents are exempt from CEQA. The Board further finds that the District either has or will produce appropriate CEQA compliance documentation prior to undertaking any project identified in these documents. N: \ENVRSEC \Position Papers \Mi11ier\2012 \6- 7 -12 \PP Conduct Hearing FY 12 -13 CIB FINAL.doc Page 3 of 4 POSITION PAPER Board Meeting Date: June 7, 2012 Subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2012 -13 CAPITAL IMPROVEMENT BUDGET AND THE 2012 TEN -YEAR CAPITAL IMPROVEMENT PLAN; APPROVE THE 2012 CAPITAL IMPROVEMENT PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2012 -13 DISTRICT BUDGET RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments on the CIB and CIP and approve the 2012 CIP. Approve and adopt the FY 2012 -13 CIB for inclusion in the FY 2012 -13 District Budget. Approval and adoption of the budget and plan will establish the Board of Directors' independent finding that these documents are exempt from CEQA and that the District either has or will produce appropriate CEQA compliance documentation prior to undertaking any project identified in these documents. 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