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Home My WebLink About12.d. PUBLIC HEARING: FY 2015-16 Capital Improvement Budget and 2015 Ten-Year Capital Improvement PlanCentral Contra Costa Sanitary District /•2.0( • BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 4, 2015 Subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2015 -16 CAPITAL IMPROVEMENT BUDGET AND THE 2015 TEN -YEAR CAPITAL IMPROVEMENT PLAN; ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2015 -16 DISTRICT BUDGET; AND APPROVE THE 2015 CAPITAL IMPROVEMENT PLAN Submitted By. Initiating Dept. /Div.: Earlene Millier, Engineering Assistant III Engineering and Technical Services /Planning and Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: E. Lopez — Capital Projects Division Manager JM Petit — Director of Engineering and Technical Services Roger S. Bailey General Manager ISSUE: The Board has established June 4, 2015, as the date for a public hearing on the fiscal year (FY) 2015 -16 Capital Improvement Budget (CIB) and the 2015 Ten -Year Capital Improvement Plan (CIP). Board approval of the CIP and adoption of the CIB for inclusion in the FY 2015 -16 District Budget is requested. RECOMMENDATION: Conduct a public hearing to receive comments on the FY 2015 -16 CIB and the 2015 Ten -Year CIP; adopt the FY 2015 -16 CIB for inclusion in the FY 2015 -16 District Budget; and approve the 2015 Ten -Year CIP. Adoption of the FY 2015 -16 CIB and approval of the 2015 Ten -Year CIP 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: Adoption of the FY 2015 -16 CIB and approval of the 2015 Ten -Year CIP are necessary steps to implement the District's Capital Improvement Program. Approval will include an estimated carryover of $9,801,000 from FY 2014 -15 and an additional authorization of $42,071,000 from the Sewer Construction Fund, resulting in a total FY 2015 -16 Board - authorized funding level of $51,872,000. 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 Ten -Year CIP provides the basis for project prioritizing and scheduling, and long -range financial planning. The CIP also provides the framework for Page 1 of 4 POSITION PAPER Board Meeting Date: June 4, 2015 Subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2015 -16 CAPITAL IMPROVEMENT BUDGET AND THE 2015 TEN -YEAR CAPITAL IMPROVEMENT PLAN; ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2015 -16 DISTRICT BUDGET; AND APPROVE THE 2015 CAPITAL IMPROVEMENT PLAN analyzing different capital program funding scenarios. The 2015 CIP covers the ten -year period from FY 2015 -16 through FY 2024 -25. The plan includes expenditures totaling $413 million (2015 dollars) over ten years. This represents an increase from the estimated $296 million (2014 dollars) ten -.year planned expenditures in the 2014 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 2015 -16 from the Sewer Construction Fund to the Treatment Plant, Collection System, General Improvements, and Recycled Water Programs. A Board Workshop was held on March 5, 2015, to discuss the CIB and estimated expenditures. A draft CIB /CIP was submitted to the Board on May 7, 2015. The Engineering and Operations Committee reviewed the draft at its May 12, 2015, meeting and an updated draft was provided to the full Board on May 21, 2015. It is appropriate for the Board to receive comments from the public prior to considering approval of the CIB /CIP. The Board established June 4, 2015, as the date for a public hearing to receive these comments, and appropriate notices have been posted and published. Capital Improvement Budget Authorization Adoption of the CIB with the FY 2015 -16 District Budget will authorize additional funds from the Sewer Construction Fund for planning, design, and construction of capital improvement projects. As stated above, the new funding authorization will include an estimated carryover of $9,801,000 from Board authorizations in previous years, and an estimated additional authorization of $42,071,000 from the Sewer Construction Fund, resulting in a total FY 2015 -16 authorized funding level of $51,872,000. These figures will be reviewed in August and a revised Table 1 (Capital Improvement Budget Summary) will be issued, if needed, when actual FY 2014 -15 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. After construction contracts are awarded, Board approval is also required for cost overruns exceeding 15% of the final project budget or beyond $1 million per project. Page 2 of 4 POSITION PAPER Board Meeting Date: June 4, 2015 subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2015 -16 CAPITAL IMPROVEMENT BUDGET AND THE 2015 TEN -YEAR CAPITAL IMPROVEMENT PLAN; ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2015 -16 DISTRICT BUDGET; AND APPROVE THE 2015 CAPITAL IMPROVEMENT PLAN The distribution of the recommended Board funding authorization to the four capital improvement programs is shown in the final draft of the CIB /CIP, which is included as Attachment 1. The estimated expenditures for the capital program in FY 2015 -16 total $30,790,000, as shown in Table 1 of the draft CIB /CIP. Equipment Budget Included in the CIB is a separate section for the FY 2015 -16 Equipment Budget, which totals $450,000, including a contingency of $50,000. 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 May 12, 2015, and again by the full Board on May 21, 2015. Information Technology Budget Also included in the CIB is the Information Technology Development Plan (IT Plan) for FY 2015 -16 and totals $1.0 million. The plan is developed to provide funding for needed hardware and software upgrades, network security, disaster recovery telecommunications, IT Master Plan implementation, and other needed applications. The IT Plan was reviewed and accepted by the full Board at its December 18, 2014, meeting and again by the Engineering and Operations Committee on May 12, 2015. Ten -Year Capital Improvement Plan The 2015 Ten -Year CIP includes $189.9 million (2015 dollars) for Treatment Plant projects (46% of total expenditures), $193.3 million for Collection System projects (47% of total expenditures), $25.2 million for General Improvements projects (6% of total expenditures), and $5 million for Recycled Water projects (1 % of total expenditures). The total for the four programs is $413 million (2015 dollars) over the next ten years. Staff has evaluated the FY 2015 -16 CIB and 2015 Ten -Year 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. Page 3 of 4 POSITION PAPER Board Meeting Date: June 4, 2015 subject: CONDUCT A PUBLIC HEARING ON THE FISCAL YEAR 2015 -16 CAPITAL IMPROVEMENT BUDGET AND THE 2015 TEN -YEAR CAPITAL IMPROVEMENT PLAN; ADOPT THE CAPITAL IMPROVEMENT BUDGET FOR INCLUSION IN THE FISCAL YEAR 2015 -16 DISTRICT BUDGET; AND APPROVE THE 2015 CAPITAL IMPROVEMENT PLAN COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed the draft FY 2015 -16 CIB and 2015 Ten -Year CIP at its May 12, 2015, 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 FY 2015 -16 CIB and the 2015 Ten -Year CIP and: Adopt the FY 2015 -16 CIB for inclusion in the FY 2015 -16 District Budget; 2. Approve the 2015 Ten -Year CIP; 3. Make the finding that the above documents are exempt from CEQA. Attached Supportinq Document: 1. (Final) Draft FY 2015 -16 Capital Improvement Budget and 2015 Capital Improvement Plan Page 4 of 4