HomeMy WebLinkAbout04.c. Adopt resolution eliminating use of Capital Improvement Program Budget allocations 4.c.
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: June 2, 2016
Subject: ADOPT RESOLUTION ELIMINATING THE USE OF CAPITAL
IMPROVEMENT PROGRAM BUDGET ALLOCATIONS
Submitted By. Initiating Dept/Div.:
Elaine R. Boehme Administration / Secretary of the District
Secretary of the District
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
E. Lopez—Capital Projects Division Manager 4Gengeral
JM Petit—Director of Engineering &Technical Svcs. Kent Alm .Bailey
Counsel for the DistrictManager
ISSUE: At its meeting on May 19, 2016, the Board approved the elimination of Capital
Improvement Program (CIP) Budget allocations effective July 1, 2016 and directed staff
to memorialize the approval in a resolution for adoption at this meeting.
BACKGROUND: The District has been utilizing budget allocations in establishing
budgets for projects in the District's Capital Improvement Budget for more than 30
years. This approach has worked well for the District for many years, and allowed staff
the flexibility to manage capital projects within the four CIP budgets using placeholders
for individual projects and allocating funds up to the maximum limit of each CIP budget,
including contingency. At the May 19, 2016 Board meeting, the Board approved the
recommendation of staff and the Engineering & Operations Committee to eliminate
budget allocations and replace them with individual project budgets. Doing so is
consistent with industry standards and will allow those unfamiliar with the District's
Capital Improvements Program to more easily understand project costs.
Staff has prepared the attached proposed resolution to memorialize the Board's recent
decision to eliminate CIP Budget allocations and implement individual project budgets
effective July 1, 2016.
ALTERNATIVES/CONSIDERATIONS: The Board could reverse its May 19, 2016
decision, choosing to leave the budget allocation system in place.
FINANCIAL IMPACTS: None.
COMMITTEE RECOMMENDATION: This item was not reviewed by a Board
Committee; however, the Engineering & Operations Committee reviewed this matter at
its meeting on May 10, 2016 and recommended elimination of the CIP Budget
allocations effective July 1, 2016.
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POSITION PAPER
Board Meeting Date: June 2, 2016
subject. ADOPT RESOLUTION ELIMINATING THE USE OF CAPITAL
IMPROVEMENT PROGRAM BUDGET ALLOCATIONS
RECOMMENDED BOARD ACTION: Adopt the attached resolution eliminating the use
of program budget allocations in the District's CIP Budget effective July 1, 2016.
Attached Supporting Document:
1. Proposed Resolution
N:WDMINSUPWDMIN\DIST-SEC\Position Papers\2016\PP Eliminate CIP budget allocations 6-02-16.doc
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ATTACHMENT 1
RESOLUTION NO. 2016-017
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
ELIMINATING THE USE OF CAPITAL IMPROVEMENT PROGRAM
BUDGET ALLOCATIONS
WHEREAS, the District has been utilizing budget allocations in establishing budgets for
the District's capital improvement projects for over 30 years; and
WHEREAS, District staff and the Engineering & Operations Committee reviewed the
budget allocation process and, in the interests of clarity and to conform with industry
standards with respect to accounting for capital improvement projects, recommended
eliminating the use of allocations among the District's four Capital Improvement
Programs in favor of implementing individual project budgets under the Capital
Improvement Program Budget effective July 1, 2016; and
WHEREAS, at its meeting held May 19, 2016, the Board directed staff to eliminate the
use of budget allocations with respect to the District's Capital Improvement Program
Budget effective July 1, 2016 and directed staff to memorialize that action in a
resolution; and
WHEREAS, although the Capital Improvement Program Budget will authorize amounts
of individual capital improvement project spending, the adoption of the budget does not
authorize construction of any project requiring California Environmental Quality Act
(CEQA) compliance documentation.
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 approval of specific budgets for potential capital improvement projects does
not constitute a binding approval of any project requiring CEQA compliance
documentation.
PASSED AND ADOPTED this 2nd day of June, 2016, by the Board of Directors of the
Central Contra Costa Sanitary District by the following vote:
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
Elimination of Capital Budget Allocations
Resolution 2016-017
Page 2 of 2
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