HomeMy WebLinkAbout05.a. Public hearing to adopt Capital Improvement Budget and Ten-Year Plan5.a.
CENTRAL CONTRA COSTA SANITARY DISTRICT
CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON
THE 2013 -14 CAPITAL IMPROVEMENT BUDGET
AND THE 2013 TEN -YEAR CAPITAL IMPROVEMENT PLAN
SUGGESTED AGENDA
JUNE 20, 2013
Request staff presentation.
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 2013 Ten -Year Capital
Improvement Plan, and approval and adoption of the 2013 -114 Capital
Improvement Budget for inclusion in the overall 2013 -14 District Budget.
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Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: June 20, 2013
subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2013 -14
CAPITAL IMPROVEMENT BUDGET AND THE 2013 TEN -YEAR CAPITAL
IMPROVEMENT PLAN; APPROVE THE 2013 CAPITAL IMPROVEMENT
PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT
BUDGET FOR INCLUSION IN THE FISCAL YEAR 2013 -14 DISTRICT
BUDGET
Submitted By. Initiating Dept. /Div.:
Earlene Millier, Engineering Assistant III Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
T. Brightbill — Senior Engineer P/�
D. Gemmell — Environmental Services Division Mgr. C. Swanson
A. Antkowiak — Capital Projects Division Manager Provisional General Manager
ISSUE: The Board of Directors has established June 20, 2013 as the date for a public
hearing on the 2013 -14 Capital Improvement Budget (CIB) and the 2013 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) 2013 -14 District Budget is requested.
RECOMMENDATION: Conduct a public hearing to receive comments on the CIB /CIP
and approve the 2013 CIP. Approve and adopt the CIB for inclusion in the FY 2013 -14
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 CCCSD either has or will produce
appropriate CEQA compliance documentation prior to undertaking any project identified
in these documents.
FINANCIAL IMPACTS: Approval of the FY 2013 -14 CIB and 2013 CIP is a necessary
step to implement the capital program. Approval will include an estimated carryover
from 2012 -13 of $7,713,000 and an additional authorization of $31,116,000 from the
Sewer Construction Fund; resulting in a total FY 2013 -14 Board authorized funding
level of $38,829,000. 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 2013 CIP covers the ten -year period
from FY 2013 -14 through FY 2022 -23. The plan includes expenditures totaling $365
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POSITION PAPER
Board Meeting Date: June 20, 2013
subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2013 -14 CAPITAL
IMPROVEMENT BUDGET AND THE 2013 TEN -YEAR CAPITAL
IMPROVEMENT PLAN; APPROVE THE 2013 CAPITAL IMPROVEMENT
PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT
BUDGET FOR INCLUSION IN THE FISCAL YEAR 2013 -14 DISTRICT
BUDGET
million (2013 dollars) over ten years. This represents an increase over the estimated
$358 million (2012 dollars) ten -year planned expenditures in the 2012 CIP.
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 2013 -14 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 29, 2013. A special
meeting of the Board to discuss the draft was held on April 11, 2013. It is appropriate
for the Board to receive comments from the public prior to considering approval of the
CIB /CIP. The Board established June 20, 2013 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 2013 -14 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 $7,713,000 from Board authorizations in previous years, and an estimated
additional authorization of $31,116,000 from the Sewer Construction Fund, resulting in
a total FY 2013 -14 authorized funding level of $38,829,000. These figures will be
reviewed in August and a revised Table 1 (Capital Improvement Budget Summary) will
be issued if needed when actual FY 2012 -13 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.
The distribution of the recommended Board funding authorization to the four capital
improvement programs is shown in the draft CIB /CIP which is included as Attachment
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POSITION PAPER
Board Meeting Date: June 20, 2013
Subject-' CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2013 -14 CAPITAL
IMPROVEMENT BUDGET AND THE 2013 TEN -YEAR CAPITAL
IMPROVEMENT PLAN; APPROVE THE 2013 CAPITAL IMPROVEMENT
PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT
BUDGET FOR INCLUSION IN THE FISCAL YEAR 2013 -14 DISTRICT
BUDGET
1. The estimated expenditures for the capital program in FY 2013 -14 are also shown in
Attachment 1 and total $29,580,000.
Equipment Budget
Included in the CIB is a separate section for the 2013 -14 Equipment Budget, which
totals $645,400, including a contingency 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 April 2,
2013, and the full Board on April 11, 2013.
Information Technology Budget
Also included in the CIB is the Information Technology Development Plan (IT Plan) for
2013 -14. The IT Plan totals $1,095,000. The plan is 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 April 2, 2013. The Capital Projects Committee
recommended that portions of the Plan be put on hold and that the money saved be
used to develop a comprehensive IT Master Plan. This recommendation is reflected in
the CIB /CIP.
Ten -Year Capital Plan
The draft 2013 CIP includes $171.7 million (2013 dollars) for Treatment Plant projects
(47% of total expenditures), $166.6 million for Collection System projects (45.6% of
total expenditures), $18.5 million for General Improvements projects (5.1 % of total
expenditures), and $8.4 million for Recycled Water projects (2.3% of total expenditures)
over the next ten years.
Staff has evaluated the CIB and CIP and concluded that they are exempt from CEQA
under CCCSD CEQA Guidelines Section 15262 since they are planning studies for
possible future actions, which CCCSD 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 CCCSD either
has or will produce appropriate CEQA compliance documentation prior to undertaking
any project identified in these documents.
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POSITION PAPER
Board Meeting Date: June 20, 2013
Subject' CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2013 -14 CAPITAL
IMPROVEMENT BUDGET AND THE 2013 TEN -YEAR CAPITAL
IMPROVEMENT PLAN; APPROVE THE 2013 CAPITAL IMPROVEMENT
PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT
BUDGET FOR INCLUSION IN THE FISCAL YEAR 2013 -14 DISTRICT
BUDGET
COMMITTEE RECOMMENDATION: The Capital Projects Committee reviewed the
draft FY 2013 -14 CIB /CIP at its April 2, 2013 meeting and provided input to staff. That
input has been incorporated in the CIB /CIP.
RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments on
the CIB and CIP and approve the 2013 CIP. Approve and adopt the FY 2013 -14 CIB
for inclusion in the FY 2013 -14 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 CCCSD either has or will produce appropriate CEQA
compliance documentation prior to undertaking any project identified in these
documents.
Attached Supportinq Documents:
1. Draft FY 2013 -14 Capital Improvement Budget and 2013 Capital Improvement Plan
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