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Home My WebLink About04.d. Adopt resolution amending authorization limits table in Capital Improvement Program Budget 4.d . Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 2, 2016 Subject: ADOPT RESOLUTION AMENDING AUTHORIZATION LIMITS TABLE SET FORTH IN THE CAPITAL IMPROVEMENT PROGRAM BUDGET 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 r JM Petit—Director of Engineering &Technical Svcs. Ke Roger S.Bailey Counsel for the District General Manager ISSUE: At its meeting on May 19, 2016, the Board approved (1) elimination of Capital Improvement Program (CIP) Budget allocations and (2) an increase in the General Manager's authority limit to $500,000 for transferring funds to individual project budgets effective July 1, 2016. Both these changes require modifications to the existing Capital Improvement Program (CIP) Authorization Limits. The Board directed staff to present a resolution memorializing these changes for adoption at this meeting. BACKGROUND: The last update to the CIP Authorization Limits was adopted by Resolution No. 2014-008 on April 10, 2014.. A strikeout version of the current table of CIP Authorization Limits, showing the modifications necessary to reflect the Board's actions on May 19, is included as Attachment 1. It is proposed that Resolution No. 2014-008 be rescinded upon adoption of the resolution included as Attachment 2, which reflects the changes explained above. ALTERNATIVES/CONSIDERATIONS: The Board could reverse its May 19, 2016 decision, or decide on some other authority limit for the General Manager with respect to transferring funds to individual project budgets. 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 all of the proposed changes to the authorization table as approved by the Board on May 19, with the exception of the change in authority for the General Manager with respect to transferring funds. The amount recommended by the Committee was lower than that approved by the Board on May 19. Page 1 of 2 POSITION PAPER Board Meeting Date: June 2, 2016 subject: ADOPT RESOLUTION AMENDING AUTHORIZATION LIMITS TABLE SET FORTH IN THE CAPITAL IMPROVEMENT PROGRAM BUDGET RECOMMENDED BOARD ACTION: Adopt a resolution confirming the Board's decision at its May 19, 2016 meeting to: 1. Amend the table of authorization limits set forth in the Capital Improvement Program (CIP) Budget to: • reflect the elimination of CIP budget allocations effective July 1, 2016, and • modify current authorization limits for the General Manager and Board of Directors related to the CIP Budget commencing with Fiscal Year 2016-17; and 2. Rescind Resolution No. 2014-008 effective July 1, 2016. Attached Supporting Documents: 1. Strikeout showing changes to existing authorization limits under Resolution No. 2014-008 2. Proposed resolution, including Exhibit A, reflecting proposed new authorization limits N:\ADMINSUPADMIN\DIST-SEC\Position Papers\2016\PP CIP Update Budget Auth Table 6-02-16.doc 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-te $500,000 or less TOW �� No limit fJe�eard may' anther+aatieaaired 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 TransferAllocatefunds from CIB pregram 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 fasladiagsentlageaeY ins4adiagGGRtiageasy 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 accounts GG�antG balance 15%of final pFGjeGt ha4get;-1--14r-4p4aa o Eanskast enpen#rao maximurn of$1,0prejeGt-budgets of aheve P6..,.,jBGt WhiGhP9PF $1,000,000 per pFejeet test Award construction contracts43 $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 pregram contingency account a a 3 Bid protests and rejection of all bids must go to Board regardless of dollar amount 1 ATTACHMENT 2 RESOLUTION NO. 2016-018 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT 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 No. 2014-008 setting forth General Manager authorities, including authorities contained in the most recent Capital Improvement Program Budget approved by the Board; 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 staff's recommendation to eliminate the use of program budget allocations under the District's Capital Improvement Program Budget; and WHEREAS, at its meeting of May 19, 2016, the Board approved eliminating of the use of Capital Improvement Program Budget allocations effective July 1, 2016 and, on June 2, 2016, adopted Resolution No. 2016-017 confirming that that decision; and WHEREAS, at its meeting of May 19, 2016, the Board also approved increasing the authority limit to $500,000 for the General Manager to transfer funds to individual project budgets effective July 1, 2016; and WHEREAS, it is appropriate to update the table of Capital Improvement Program Authorization Limits to reflect both the elimination of Capital Improvement Program Budget allocations the increase in General Manager authority limit, which changes are reflected in Exhibit A, effective July 1, 2016. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District ("District") as follows: 1. 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 2. As of July 1, 2016, existing District Resolution No. 2014-008 shall be rescinded. 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: General Manager Authority Resolution 2016-018 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 2016-018 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 $500,000 or less 1 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 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 contingency account 3 Bid protests and rejection of all bids must go to Board regardless of dollar amount