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Home My WebLink About06. Draft PP to amend the Capital Improvements Program authorization limitsCentral Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 2, 2016 Subject: AMEND THE CAPITAL IMPROVEMENTS PROGRAM AUTHORIZATION LIMITS STARTING FISCAL YEAR 2016-17 Submitted By: Edgar J. Lopez, Division Manager REVIEWED AND RECOMMENDED FOR BOARD ACTION: J -M. Petit — Director of Engineering and Technical Services Initiating Dept./Div.: Engineering and Technical Services/Capital Projects K. Alm Roger S. Bailey Counsel for the District General Manager ISSUE: Adoption of a resolution is recommended to ratify changes to the General Manager's and Board of Director's current authorization limits set forth in the Capital Improvement Program (CIP) Budget. BACKGROUND: On April 10, 2014, the Board adopted Resolution 2014-008, updating the General Manager's authority limits. By reference, that resolution incorporates the General Manager's authority limits which are contained in other documents, including the authorization limits set forth in the most recent CIP Budget, approved by the Board each year. Staff has proposed revising the CIP budget process by eliminating the current Capital Improvement Budget Allocation (CIBA) system and replacing it with a simple, standard system for budgeting and reporting capital projects. The new changes will be transparent and not negatively impact the overall District budget process. In order to make the changes necessary to the budgeting of CIP projects, staff is recommending changes to the current Capital Improvements Program Authorization Limits, which are reflected in Attachment 1. Once approved, staff will incorporate the changes into the CIP Budget and update the District's engineering and accounting procedures to reflect the changes beginning Fiscal Year 2016-17. ALTERNATIVES/CONSIDERATIONS: The Board may wish not to adopt the resolution, or revise the proposed authority limits. FINANCIAL IMPACTS: None. Page 1 of 2 POSITION PAPER Board Meeting Date: June 2, 2016 Subject: AMEND THE CAPITAL IMPROVEMENTS PROGRAM AUTHORIZATION LIMITS STARTING FISCAL YEAR 2016-17 COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed this subject at the meeting on May 10, 2016, and recommended the resolution and changes to the CIP authority limits. RECOMMENDED BOARD ACTION: Adopt the resolution amending the General Manager's and Board of Director's authorization limits, as reflected in Exhibit A, contained in the District's Capital Improvement Program Budget. Attached Suoportina Documents: 1. Attachment 1 - strikeout showing changes to the authorization limits. 2. Proposed resolution, including Exhibit A, reflecting new authorization limits. (Resolution in process) Page 2 of 2 ATTACHMENT 1 Table 4: Capital Improvement Program Authorization Limits Action Approve Capital Plan Authorize Capital Program budgets Professional Consulting Services Authorize Consultant Technical Consulting Services. Contracts Professional Eng. Services. TransferAllocate funds from CIB program contingency accounts to projects not included in the CIB Individual equipment items and equipment contingency in the Equipment Budget Individual equipment items not in the Equipment Budget Authorize supplemental funds to program budgets and contingency account/ contingency accounts Transfer Allocate funds for project budget overruns after award of construction contract Award construction contracts43 Authorize construction change orders Deductive Additive Subcontractor substitutions Construction project acceptance Close out project General Manager None None contingency} $100,000 or less $100,000 or less $100,000 or less $100,000 or less per project2 Up to amount specified in Equipment Budget including contingency $50,000 or less Not applicable 15% of final project budget1,2' or up to a maximum of $1,000,000 per project, whichever is less $100,000 or less $100,000 or less No limit All substitutions unless protested by subcontractor All projects All projects Board of Directors No limit No limit No Bo rd authorization required Greater than $100,000 Greater than $100,000 Greater than $100,000 Greater than $100,000 Above amount specified in Equipment Budget including contingency Greater than $50,000 Sewer Construction Fund balance Greater than 15% of final project budget' or above $1,000,000 per project Greater than $100,000 Greater than $100,000 No Board authorization required Substitutions protested by subcontractor Informational announcement to the Board Memo provided to the Board at end of FY 1 Limited by the remaining balances of the applicable program and contingency account 2 Limited by the remaining balance of the applicable program contingency account a Final project budget is established at time of award of construction contract 43 Bid protests and rejection of all bids must go to Board regardless of dollar amount 2015 16 OE Introduction Intro 1 EXHIBIT A Capital Improvement Program Authorization Limits Action Approve Capital Plan Authorize Capital Program budgets Professional Consulting Services Authorize Consultant Technical Consulting Services. Contracts Professional Eng. Services. Transfer funds from CIB contingency account to projects not included in the CIB Individual equipment items and equipment contingency in the Equipment Budget Individual equipment items not in the Equipment Budget Authorize supplemental funds to program budgets and contingency account Transfer funds for project budget overruns after award of construction contract Award construction contracts3 Authorize construction change orders Deductive Additive Subcontractor substitutions Construction project acceptance Close out project General Manager None None $100,000 or less $100,000 or less $100,000 or less $100,000 or less per project2 Up to amount specified in Equipment Budget $50,000 or less Not applicable 15% of project budget1,2 or up to a maximum of $1,000,000 per project, whichever is less $100,000 or less $100,000 or less No limit All substitutions unless protested by subcontractor All projects All projects Board of Directors No limit No limit Greater than $100,000 Greater than $100,000 Greater than $100,000 Greater than $100,000 Above amount specified in Equipment Budget Greater than $50,000 Sewer Construction Fund balance Greater than 15%of project budget or above $1,000,000 per project Greater than $100,000 Greater than $100,000 No Board authorization required Substitutions protested by subcontractor Informational announcement to the Board Memo provided to the Board at end of FY Limited by the remaining balances of the applicable program and contingency account 2 Limited by the remaining balance of the applicable contingency account 3 Bid protests and rejection of all bids must go to Board regardless of dollar amount