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Home My WebLink About07. Draft PP re: Public Hearing to Approve and Adopt FY 2014-15 CIB/CIP and 2014 Ten-Year CIP�S C- Rum Central Contra Costa Sanitary District !47 BOARD OF DIRECTORS POSITION PAPER ^ Aw. Board Meeting Date: June 5, 2014 subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2014 -15 CAPITAL IMPROVEMENT BUDGET AND THE 2014 TEN -YEAR CAPITAL IMPROVEMENT PLAN; APPROVE THE 2014 CAPITAL IMPROVEMENT PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2014 -15 DISTRICT BUDGET Submitted By: Initiating Dept./Div.: Earlene Millier, Engineering Assistant III Engineering /Capital Projects Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: A. Antkowiak - Capital Projects Division Manager Roger S. Bailey General Manager ISSUE: The Board has established June 5, 2014 as the date for a public hearing on the 2014 -15 Capital Improvement Budget (CIB) and the 2014 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) 2014 -15 District Budget is requested. RECOMMENDATION: Conduct a public hearing to receive comments on the CIB /CIP and approve the 2014 CIP. Approve and adopt the CIB for inclusion in the FY 2014 -15 District Budget. Approval and adoption of the budget and plan will establish the Board's 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 2014 -15 CIB and 2014 CIP is a necessary step to implement the capital program. Approval will include an estimated carryover from 2013 -14 of $32,792,602 and an additional authorization of $26,671,000 from the Sewer Construction Fund, resulting in a total FY 2014 -15 Board - authorized funding level of $59,463,602. 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 2014 CIP covers the ten -year period from FY 2014 -15 through FY 2023 -24. The plan includes expenditures totaling $296 Page 1 of 4 POSITION PAPER Board Meeting Date: June 5, 2014 Subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2014 -15 CAPITAL IMPROVEMENT BUDGET AND THE 2014 TEN -YEAR CAPITAL IMPROVEMENT PLAN; APPROVE THE 2014 CAPITAL IMPROVEMENT PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2014 -15 DISTRICT BUDGET million (2014 dollars) over ten years. This represents a decrease from the estimated $365 million (2013 dollars) ten -year planned expenditures in the 2013 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 2014 -15 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 on April 3, 2014, and a special meeting of the Board was held to discuss the draft on April 10, 2014. It is appropriate for the Board to receive comments from the public prior to considering approval of the CIB /CIP. The Board established June 5, 2014 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 2014 -15 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 $32,792,602 from Board authorizations in previous years, and an estimated additional. authorization of $26,671,000 from the Sewer Construction Fund, resulting in a total FY 2014 -15 authorized funding level of $59,463,602. These figures will be reviewed in August and a revised Table 1 (Capital Improvement Budget Summary) will be issued if needed when actual FY 2013 -14 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 15% of final project budget or up to a maximum of $1,000,000 per project, whichever is less, for project budget overruns after award of construction contract. These authority limits were reviewed and updated by the Board at its April 10, 2014 Workshop. The distribution of the recommended Board funding authorization to the four capital improvement programs is shown in the draft CIB /Capital Improvement Plan (CIP), Page 2 of 4 POSITION PAPER Board Meeting Date: June 5 2014 Subject-' CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2014 -15 CAPITAL IMPROVEMENT BUDGET AND THE 2014 TEN -YEAR CAPITAL IMPROVEMENT PLAN; APPROVE THE 2014 CAPITAL IMPROVEMENT PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2014 -15 DISTRICT BUDGET which is included as Attachment 1. The estimated expenditures for the capital program in FY 2014 -15 are also shown in Attachment 1 and total $25,079,000. Equipment Budget Included in the CIB is a separate section for the 2014 -15 Equipment Budget, which totals $617,200, including a contingency of $75,000. This budget includes equipment requests of $5,000 or more and itemizes those greater than $100,000. The Equipment Budget was reviewed by the Engineering and Operations Committee on April 28, 2014, and the full Board on April 10, 2014. Information Technoloav Budget Also included in the CIB is the Information Technology Development Plan (IT Plan) for 2014 -15. The IT Plan totals $1,000,000. The plan is developed to provide funding for needed hardware and software upgrades, network security, disaster recovery telecommunications, an IT Master Plan, and other needed applications. The IT Plan was reviewed by the Engineering and Operations Committee on April 28, 2014. Ten -Year Capital Plan The 2014 CIP includes $108.5 million (2014 dollars) for Treatment Plant projects (37% of total expenditures), $162.4 million for Collection System projects (55% of total expenditures), $19.8million for General Improvements projects (7% of total expenditures), and $5.3 million for Recycled Water projects (2% of total expenditures) over the next ten years. The total for the four programs is $296 million (2014 dollars) over the next ten years. Staff has evaluated the CIB and CIP and concluded that they are exempt from CEQA under the District's 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's independent finding that these documents are exempt from CEQA. The Board would further find that the District either has or will produce appropriate CEQA compliance documentation prior to undertaking any project identified in these documents. COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed the draft FY 2014 -15 CIB /CIP at its April 28, 2014 meeting and provided input Page 3 of 4 POSITION PAPER Board Meeting Date: June 5, 2014 Subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2014 -15 CAPITAL IMPROVEMENT BUDGET AND THE 2014 TEN -YEAR CAPITAL IMPROVEMENT PLAN; APPROVE THE 2014 CAPITAL IMPROVEMENT PLAN, AND APPROVE AND ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2014 -15 DISTRICT BUDGET to staff. That input has been incorporated in the CIB /CIP. The Engineering & Operations Committee also reviewed this matter at its May 27, 2014 meeting and recommended the Board take the action laid out in this Position Paper. RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments on the CIB and CIP and approve the 2014 CIP. Approve and adopt the FY 2014 -15 CIB for inclusion in the FY 2014 -15 District Budget. Approval and adoption of the budget and plan will establish the Board's 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 Supporting Documents: 1. Draft FY 2014 -15 Capital Improvement Budget and 2014 Capital Improvement Plan (to be distributed with the June 5, 2014 Board agenda packet) Page 4 of 4