Loading...
HomeMy WebLinkAbout05.a. Consider eliminating the use of Capital Improvement Program budget allocations, and adopt resolution updating capital improvement program authorization limits 5. a. Central Contra Costa Sanitary District f' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 19, 2016 subject: ELIMINATE THE USE OF CAPITAL IMPROVEMENT BUDGET ALLOCATIONS, AND ADOPT RESOLUTION UPDATING THE CAPITAL IMPROVEMENT PROGRAM AUTHORIZATION LIMITS Submitted By. Initiating Dept./Div.: Edgar J. Lopez, Division Manager Engineering and Technical Services/Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: OIL— J-M. Petit—Director of Engineering and K.Alm Roger S.Bailey Technical Services Counsel for the District General Manager ISSUE: Board authorization is requested to (1) eliminate the use o rogram budget allocations in the District's Capital Improvement Program (CIP) Budget effective July 1, 2016, and (2) amend the table of authorization limits under the CIP Budget to both reflect the elimination of budget allocations and modify current authorization limits for the General Manager and Board of Directors related to the CIP Budget commencing with the Fiscal Year (FY) 2016-17. BACKGROUND: For over 30 years, the Capital Improvement Budget (CIB) included an accounting and budgeting procedure titled Capital Improvement Budget Allocation (CIBA) requests, in which the General Manager was authorized to allocate funds up to the maximum limit of each CIB program budget, including contingency. As previously discussed in the FY 2016-17 District budget workshops, staff has proposed revising the CIP budgeting procedures by eliminating the use of program budget allocations and replacing them with new procedures that will be more transparent when budgeting for capital projects. The major CIP budgeting changes consist of deleting budget allocations based on Board-authorized program budgets and authorizing the General Manager to allocate up to 15% of the project budget determined at award of construction. Instead, staff recommends that all project budgets listed in the fiscal year CIB be authorized with firm budgets and that the General Manager have the authority limit up to $50,000 to transfer funds within the program in order to cover the costs for overruns and project changes. Any project transfer above $50,000 would require Board authorization. If the deletion of program budget allocations is approved by the Board, the table of authority limits will need to be updated accordingly. Additionally, if the Board approves a General Manager authority limit up to $50,000 to transfer funds within the CIP Budget, Page 1 of 2 POSITION PAPER Board Meeting Date: May 19, 2016 Subject: ELIMINATE THE USE OF CAPITAL IMPROVEMENT BUDGET ALLOCATIONS, AND ADOPT RESOLUTION UPDATING THE CAPITAL IMPROVEMENT PROGRAM AUTHORIZATION LIMITS that too should be reflected in the table. A strikeout version of the current table of CIP Authorization Limits is reflected in Attachment 1. The last update to the CIP Authorization Limits was adopted under Resolution No. 2014-008 on April 10, 2014. It is proposed that that be rescinded upon adoption of the proposed resolution included as Attachment 2, which sets forth the changes explained above. 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 with FY 2016-17. ALTERNATIVES/CONSIDERATIONS: The Board may wish to continue the use of CIP budget allocations, and may wish to leave current authority limits as is, or revise them. FINANCIAL IMPACTS: None. COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed this subject at its meeting on May 10, 2016, and recommended the changes reflected in Attachment 1 and Exhibit A to the attached proposed resolution (Attachment 2). RECOMMENDED BOARD ACTION: 1. Eliminate the use of program budget allocations among the four Capital Improvement Programs (CIP) in favor of implementing individual project budgets, effective July 1, 2016, and 2. Adopt a resolution: a. Amending the table of authorization limits under the CIP Budget to: 1) Reflect the elimination of CIP budget allocations; and 2) Modify current authorization limits for the General Manager and Board of Directors related to the CIP Budget commencing with Fiscal Year (FY) 2016-17; and b. Rescind Resolution No. 2014-008, effective July 1, 2016. Attached Supportinq Documents: 1. Attachment 1 -strikeout showing changes to the authorization limits. 2. Proposed resolution, including Exhibit A, reflecting proposed new authorization limits. 3. PowerPoint presentation Page 2 of 2 ATTACHMENT 1 Table 4: Capital Improvement Program Authorization Limits Action General Manager Board of Directors Approve Capital Plan None No limit Authorize Capital Program budgets None No limit Transfer funds to individual project budgets Alleeate funds $50,000 or less fetalte ��� No limit Ale-@earl GGRtmges1' aut#er+zatieR Fequired Professional Consulting Services $100,000 or less Greater than$100,000 Authorize Consultant Technical Consulting Services. $100,000 or less Greater than$100,000 Contracts Professional Eng.Services. $100,000 or less Greater than$100,000 TransferAllesate funds from CIB pregraFA contingency $100,000 or less per Greater than$100,000 accounts to projects not included in the CIB project2 Individual equipment items and equipment contingency in Up to amount specified in Above amount specified in the Equipment Budget Equipment Budget Equipment Budget Leroy nduding GORt'RgenG!,' Individual equipment items not in the Equipment Budget $50,000 or less Greater than$50,000 Authorize supplemental funds to program budgets Not applicable Sewer Construction Fund and contingency account/sentisgeasyasseunts balance 15%of fiaalprejest t et4-," a Gmater than 15%of f prejest et3GFabove s���;t���stien-seatrast maximum of$1,0 'est Award construction contracts43 $100,000 or less Greater than$100,000 Authorize Additive $100,000 or less Greater than$100,000 construction change orders Deductive No limit No Board authorization required Subcontractor substitutions All substitutions unless Substitutions protested by protested by subcontractor subcontractor Informational Construction project acceptance All projects announcement to the Board Close out project All projects 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 PregraFn contingency account a Final prejeet budget is established at time ef awaFd ef GOR64LIGtiOR GE)RtFaGta 3 Bid protests and rejection of all bids must go to Board regardless of dollar amount ATTACHMENT 2 RESOLUTION NO. 2016-017 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ELIMINATING THE USE OF CAPITAL IMPROVEMENT PROGRAM BUDGET ALLOCATIONS AND AMENDING GENERAL MANAGER AUTHORIZATION LIMITS SET FORTH IN THE CAPITAL IMPROVEMENT PROGRAM BUDGET WHEREAS, the proper functioning of the Central Contra Costa Sanitary District ("District") requires that the General Manager and his or her staff have adequate authority to carry out both the routine and reoccurring functions as well as the emergency functions of the District; and WHEREAS, on April 10, 2014, the Board adopted Resolution 2014-008 setting forth General Manager authorities, including authorities contained in the most recent Capital Improvement Program Budget approved by the Board; and WHEREAS, staff has recommended eliminating the use of program budget allocations under the Capital Improvement Program Budget effective July 1, 2016; and WHEREAS, at its meeting of May 10, 2016, the Engineering & Operations Committee reviewed and recommended changes to the General Manager and Board authorization limits contained in the most recent Capital Improvement Program Budget consistent with elimination of program budget allocations; and WHEREAS, at its meeting of May 19, 2016, the Board concurred with the Engineering & Operations Committee's recommended changes to the General Manager and Board authorization limits contained in the most recent Capital Improvement Program Authorization Limits, as reflected in Exhibit A. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District ("District") as follows: 1. The use of program budget allocations in the District's Capital Improvement Program Budget is eliminated effective July 1, 2016; 2. The General Manager and Board authorization limits contained in the Capital Improvement Program Authorization Limits are amended as shown in Exhibit A, attached, commencing with Fiscal Year 2016-17; and 3. As of July 1, 2016, existing District Resolution No. 2014-008 shall be rescinded. PASSED AND ADOPTED this 19th day of May, 2016, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: General Manager Authority Resolution 2016-0/7 Page 2 of 3 AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District General Manager Authority Resolution 2016-0/ Page 3 of 3 EXHIBIT A Capital Improvement Program Authorization Limits Action General Manager Board of Directors Approve Capital Plan None No limit Authorize Capital Program budgets None No limit Transfer funds to individual project budgets $50,000 or less No limit Professional Consulting Services $100,000 or less Greater than$100,000 Authorize Consultant Technical Consulting Services. $100,000 or less Greater than$100,000 Contracts Professional Eng.Services. $100,000 or less Greater than$100,000 Transfer funds from CIB contingency account to projects not $100,000 or less per Greater than$100,000 included in the CIB project2 Individual equipment items and equipment contingency in Up to amount specified in Above amount specified in the Equipment Budget Equipment Budget Equipment Budget Individual equipment items not in the Equipment Budget $50,000 or less Greater than$50,000 Authorize supplemental funds to program budgets Not applicable Sewer Construction Fund and contingency account balance Award construction contracts3 $100,000 or less Greater than$100,000 Authorize Additive $100,000 or less Greater than$100,000 construction No Board authorization change orders Deductive No limit required Subcontractor substitutions All substitutions unless Substitutions protested by protested by subcontractor subcontractor Informational Construction project acceptance All projects announcement to the Board Close out project All projects 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 ATTACHMENT 3 PROPOSED AMENDMENT TO AUTHORIZATION LIMITS UNDER CAPITAL IMPROVEMENTS PROGRAM (CIP) BUDGET To MODIFY CURRENT AUTHORIZATION LIMITS NEW LIMITS EFFECTIVE FISCAL YEAR 2016-17 Presented by Edgar J . Lopez, PE Capital Projects Division Manager May 19, 2016 Board Meeting EMiSRCJwF :Pln . ' BUDGET FORMAT CHANGES ® Capital Improvement Budget Elimination of allocations List of projects with firm individual project budgets versus placeholders Formal process for transfer of funds (Board of Directors' approval) e_ 1 * i .• a, 1 , .. EXAMPLE OF CIP FORMAT CHANGE PREVIOUS VERSION FY 2015= 16 ABLE 6: FY 15-16 CIB Recycled Water Program Bud et/Project List Date: 05/04/15 List of Active Rew Projects Bud et allocated and tracked in Sunc uard Estimated Ex enditures Priority Project Current Project Allocated to date Prior FY(s) Remaining FY14/15 FY15/16 FY16/17 Future FY Page Number Phase Spent Budget 7299 C Concord Landscape $3,915,000 $3,697,629 $217,371 $130,000 $87,000 $0 $0 RW-1 e H 7279 P Concord Naval Weapons REW $280,000 $264,855 $15,145 $1,100 $0 $5,000 $0 RW-2 ery H 7300 P Refinery REW $385,000 $283,727 $101,273 $50,000 $4,000 $47,500 $0 RW-3 eryH 7306 D one 1 Recycled Water $145,0001 $35,061 $109,939 $50,000 $0 $0 $0 RW-4 ery H 7306 C one 1 Recycled Water $75,000 $0 $75,0001 $ $29,0001 $46,000 $0 RW-4 Subtotal: $4,800,001 $4,281,2721 $518,72q $231,101 $120,0001 $98,500 $ List of Projects in FY 2015-16 Unallocated A.Carry Over-$288,000 7344 PRec cled Water Planning $250,000 $0 $0 $0 $100,000 $150,000 $0 RW-5 7345 P Filter Plant $200,000 $0 $0 $0 $200,000 $0 $0 RW-6 7344 1 C IFilter Plant 16-17 $200000 $0 $0 $0 $0 $150,0001 $50,000 RW- 7346 1 P ISurge Analysis 16-17 1 $60,000 $0 $0 $0 $0 $65,000 $01 RW-7 B.Estimated Allocations to $450,00 $ $ $o $300,000 $365,00 FY 2015-16 Raw Program: Program Contingency 10% $30,00 $36,50 Estimated FY Expenditures: S450.000500 00 Total Proposed Authorization „ � A+B+Contin enc =C $768,000 "'" ` D i EXAMPLE OF CIP FORMAT CHANGE NEW VERSION FY 2016=2017 Project Project Budgeted to Prior Fiscal FY16/17 Future FYs Project Total Number date Years 7300 Refinery REW $595,000 $355,642 $40,000 $199,358 $595,000 7306 Zone 1 Recycled Water $395,000 $237,005 $37,815 $385,180 $660,000 7344 Recycled Water Planning $100,000 $50,000 $102,185 $347,815 $500,000 7345 Filter Plant $200,000 $200,000 $200,000 $150,000 $550,000 A 7346 Surge Analysis 16-17 $0 $0 $55,000 $45,000 $100,000 7347 Rew Automated Fill Station $115,000 $100,000 $15,000 $0 $115,000 7350 lResidential Fill Station Improv 1 $450,000 $4000001 $50,000 $0 $450,000 Totals: $1,855,000 $1,342,647 $500,000 $1,127,353 $2,970,000 CURRENT AUTHORIZATION LIMITS Table3: Capital Improvement Program Authorization Limits ACTION GENERAL BOARD OF MANAGER DIRECTORS Approve Capital Plan None No limit Authorize Capital Program budgets None No limit Allocate funds o individual project budgets Total program budget No Board plus contingency' authorization required Authorize Professional Consulting Services $100,660 or less Greater than$100,000 Consultant Technical Consulting Services. $100,000 or less Greater than$106,000 Contracts Professional Eng.Services. $100,000 or less Greater than$100,DDO Allocate funds from program contingency accounts o $100,000 or less per Greater than$100,000 projects not included in the CIB projecP Individual equipment items and equipment contingency in Up o amount Above amount the Equipment Budget specified in specified in Equipment Equipment Budget Budget including including contingency contingency Individual equipment items not in the Equipment Budget $50,006 or less Greater than$50,000 Authorize supplemental funds to program budgets/ Not applicable Sewer Construction contingency,accounts Fund balance Allocate funds or project budget overruns after award of 15%of final project Greater than 15%of construction contract budget'22 or up to final project budget3 or maximum of above$1,060.600 $1,000,006 per madmum per project project whichever is less Award construction contract $100,000 or less Greater than$100,000 Authorize Additive $100,001 or less Greater than 100,630 construction change orders Deductive No limit No Board authorization required Subcontractor substitutions All substitutions Substitutions protested unless protested by by subcontraMr subcontractor Construction project acceptance All projects Informational announcement to the Board Close out project All projects Memo provided to the Board at end of FY 'Limited by the remaining balances of the applicable program budget and contingency account 'Limited by the remaining balance of the applicable program contingency account 3Final project budget is established at time of award of construction contract 4 Bid protests and rejection of all bids must go to Board regardless of dollar amount PROPOSED MODIFICATIONS Table Capital Improvement Program Authorization Limits Action General Manager Board of Directors Approve Capital Plant None No6mt Au horde Capital Program budgets Note No knrt Transfer funds to indmdual orosd buMMA. ILI.Oo3 ori+`4aam; No Inrtt NaP,we :k."" _49-W Professional Consulting Services $100,000 a less Greater than$1 DOM!) Author Cu LAW Techneal Consulting Services. $100,000 o les Greater manSID0,000 Contracts Professional Eng.Services. $100,000o1ess Greater than$100,000 T.•a^sferaieca;e funds from CIE^.-,-.^^^^tirgencf 9100.000or less per Greater than$1 XWO aoWuflta to projects notelduded n the GIB project, Indnduel u t nems and n up to amount speared m Above amount spedrstl ot eq Amen equvpment avttegeaxy Equpnent Budget Equipment Budget the C-quipmenl Budget _ awag-r�atya.e+ - Individual egwpment new not m the Equ¢tment Budget S50,D)0 or less Greeter man 550,000 Aut ori supplemefnal turas toprogram budgets No ka0le tion Sewer ConstrucFund snu:x+ntagene,a.',Jnd__,,...a_„- ...;,;,.,. aPP balance pydgg s r-r- Awardconstrudion contracts- 6100,0000IM GreatermanS100,Osv Audo¢e Addnw $100,000or ss Grealerdw 5100,000 Wnstructlnn dmV orders Dedw,tive No limit No Board authontabon reguned subcontractor substhu[iors Al substi utons unless Substitutions protested by protested by subcontractor subcontra^tor If formations Construction procto acceptance Al projects anrauncernem to the Board Close out Wopa All Pqeds Memo provided tome Board at end of FY t Limited by the remaining balances of the applicable program and contingency account Z Limited by the remaining balance of the applicable praexamcontingency account budget is _Bid protests and rejection of all bids must go to Board regardless of dollar amount '- 1 PROPOSED NEW AUTHORIZATION LIMITS Capital Improvement Program Authorization Limits Action General Manager Board of Directors Approve Capital Plan Now No limit Authorize Capital Program budgets None No lmft Transfer funds to individual project budgets 550,E or less' No limit Professional Consulting Services $100,000 or less Greater than 9100,D0 Authorize 'Ons Technical Consulting Services. 5100,000 or less Greater than 8100,D00 Contracts Professional Eng.Services. S100,IXHi or less Greater than$100,= Transterfunds from ClBmntingency account to projects not $100,OD0 or lass per �z Greater than$1�0,03D included in the CIB pro Individual equipment dems and equipment contingency in Up to amount specified in Above amount specified In the Equipment Budget Equipment Budget Equipment Budget Individual equipment items not in the Equipment Budget $50,0100 or less Greater than 550,0W Authorize supplemental irk to program budgets Not applicable Sewer Construction Furl and oontgency account balance Award oonstruction comracts� SIX=or lam Greater than S100,0DO Authorize Additive SIX=orless Greater than$100,0M construction charge orders Deductive No IM No Board aunarrzation required Subcontractor substitutions AN substitutions unless Substitutions protested by protested by subcontractor subcontractor Informational Con"Zion project acceptance All projects announcement to the Board Close outproject All projects Memo provided to the Board at end of FY 1 Limited by the remaining balances of the applicable program and contingency account Z Limited bythe remaining balance of the applicable contingency account 3 Bid protests and rejection of all bids must go to Board regardless of dollar amount ' QUESTIONS ?