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HomeMy WebLinkAbout10.a.1)b) PowerPoint - District Budget for Fiscal Year 2017-18 1 O.a. 1 b ,, rJ i' 1%; a . Presented by ..R• � Y��p. Phil Leiber, �. � Director of Finance & Administration Edgar Lopez, Capital Projects Manager Board of Directors M May 18, 2017 w a• j� _ Capital Presented to, Engineering Committee I& too #, May 9 2017 } _ r ' O&M Presented to: Finance Committee May 15, 2017 i " PRESENTATION OVERVIEW • Summary of Funding Sources & Uses • Operation and Maintenance • Capital Improvement Overview • Self-Insurance • Debt Service • Reserves • Detailed Capital Improvement Presentation TOTAL FUNDING SOURCES $100,000,000 $89188000 0 FY 201.6-17 Budget -4 FY 2-017-18 Budget 1 � $90,000,000 $131,358,481 $1381532,599 $82,9201000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30.,,000,000 $2112001000 $15,,873,399 $20,000,000 $19,340,000 $14,828,310 $5,900,000 $61371,,200 1 � $10)P000,000 $6 060 000 $81195J45 Sewer Service Charge City of Concord Property Tax Revenue Capacity Fees All Other Sources • Increase of $7, 174, 118 SSC increases $6.27 million due to 5.37% rate increase Concord up $1 .86 million due to treatment plant CIB increase Property Tax: up $1 .045 million Capacity fees: down $0.16 million All Other Sources: downrel$1 .8 million ated to use of reserves in FY16 17. J--N T-R-k-L N31 SEWER SERVICE CHARGE RATES AND REVENUES FY 201 5-1 6 THROUGH FY 201 7-1 8 FY FY FY SSC Rates 2015-16 2016-17 2017-18 Change % Increase Single $471 $503 $530 $27 5.37% Multi 463 487 513 $26 5.37% Budget Budget Budget SSC Revenues FY 2015- FY 2016- FY 2017. ($Thousands) 16 17 18 Change '` % Increase O & M $70,390 $71 ,100 $75,221 $4,121 5.8% Capital 8,110 11 ,820 $13,967 2,147 18.2% Total $78,500 $82,920 $89,188 $6,268 7.6% * Reflects total change in SSC from rate increase and all other factors. ToTAL FUNDING USES $10010001000 $ 0,000,000 $89,810,918 $89,713,587 m FY 201E-17 Budget ■FY 2017-18 Budget $131,358,481 $138,532,599 $80,000,000 $70,000,000 $601000,000 $501000,©00 $42,774,000 $401,000,000 $36,808,750 $30,000,000 $20,000,000 $10,000,000 $3,790,807 $3,819,099 $112891#413 $948,000 $93+5,500 Operations and Maintenance Sewer Construction Debt Service Self-insurance Contribution to Reserves • Increase of $7, 174, 118 ©&M Budget spending reducedmi.1 0million ton Cspending u $6 million o Debt service self insurance flat Contribution to reserves increases $1 .3 million CF�tFt�L C;wt�t';t 55e ►: , - gle OPERATING FUND REVENUES ($MILLIONS) FY 2016-1 7 FY 2017-1 8 $89.8 $94.7 Hazardous Hazardous Household Household Waste $0.9 Other $3.0 Waste $0.9 Other $3.4 City of 1/ 3% City of 1% 4% Concord I Concord I $14.8 17% $15.2 16% Sewer Sewer Service Service Charge Charge $71.1 79% �; ..� $75.2 79% OPERATING FUND XPENDITUREs FY 2017=1 8 $89w7 BILLIONS) Repair&Maintenance, Outside Services, Materials&Supplies, $5,300,6% $3,453,4% $2,05912% All Other, $5,202,6%, Salaries&Wages,$34,,798, Chemicals&Utilities,, 39% $6,12217% Other Benefits Vacancies/Cap OH, 945, 1% Unfunded Liability j. Contribution,$2,500,3% Retirement Normal Cost, $5,121,5% Retirement UAAL,$11,679, 13% Medical,,$12,536,14% Revenues of $94.7 less expenditures of $89.7 Contribution to Reserve of $4.94 million PRO 0 D O&M BUDG T FOR FY . 2017=1 8 AND FY 2018= 1 9 Adopted FY 16/17 Proposed Proposed Accounts Budget Administration $27,828,993 $27,261,506 $26,524844 Engineering $15,899,140 $17,072,212 Collection System Operations $14,472,053 $14,156,213 $16,123,023 Plant Operations Department $261807,177 $27,022,734 $31,220,+694 Pumping Stations $3,001,836 $2,919,795 $3,637,557 Recycled Water $1,801,719 $1,0318,642 $1,031,,330 TOTAL O&M EXPENSES $89,0810,v918 $89,0713.o587 $95,r6O9.9960 a1 4 L 1 ► w. 8 r OPERATINGEXPENSESMPARICOSON ($ Thousands) $40,000 $341798 n FY 2016-17 Budget 0 FY 2017-18 Budget $35,000 $3311 $30,000 $251000 $20,000 $15,000 $12,536 536 $11,67961 $11,7 $11,742 $10'.000 $51121 $6,122 1 $5,925 $6,236 $5,,202 $5,300 $30453 $2,,500 945 $5,346 $5,223 $3,980 $2,059 $51000 ,� $2,500 1�i 1 ' 11 ,� $20100 $0 ell de e e ell CO Y \N ?_4 \SQ, sPll ib- 6e C_.3 �0 N cod elk 1P CP e; �a • O&M Budget spending is reduced "'0. 1 million compared to FY 2016-2017 Salaries & Wages up 4.9% Medical up 6.6% (Kaiser down 4%, Healthnet up 10%) Retirement cost down 4.3% (normal cost reduced) Other benefits down 49% largely due to lower OPEB trust expense (ARC went down while pay-go expenses increased) Non-labor expenses down 3% overall O&M BUDGET HIGHLIGHTS • Labor Related Costs • Salaries: MOU-Specified COLA: 3.3%+1% salary adjustment; other adjustments total 0.6% resulting in 4.9% increase in salaries overall. Health: Kaiser premium decrease of 4% (increase last year of 6.9%) - Health Net premium increase of 10%(increase 7.6% last year) - Delta Dental premium decrease 3% (decrease 8.2% last year) • Pension / OPEB: - CCCERA: decrease of 7.6%/11 .2% PEPRA; offset by higher wage base. Additional $2.5 million paid toward retirement/OPEB - Employees paying full employee share of retirement contribution $7.5 million fundin for GASB 45 OPEB retiree health benefits ($5.9 million retiree ' health premiums, 1 .6 million contributed to trust toward unfunded liability) • Other - Employee Assistance Program increase of 3% (decrease by 2% last year) Worker's compensation: Estimated 10% increase. F 10 UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) TREND LAST 5 YEARS Valuation Date 5-Year Average 72/31/2015 12/31/2014 12/31/2013 12/31/12 12/31/11 For Fiscal Year 2016-17 2015-16 2014-15 2013-14 2012-13 Total CCCSD Unfunded Liability $112,324,433 88,182,228 100,955,188 120,792,362 142,523,585 109,168,803 District Funded%of UAAL 75.32°0 70.40% 63.12% 56-38% 62.50% CCCERA Total Pool Funded 96 of URAL 84.47% 81.69% 76.41% 70.64% 78.47% Source: Segal Actuarial Report Rate pages breaking out UAAL Component,then percent applied to Total Employer Contribution Rate Total CCCSD Unfunded liability Five Most Recent CCCERA Valuations $160,000,000 $140,000,000 $120,000,000 _ $1001000,000 $80,000,000 --. $60,0001000 $40,000,000 -$20.'0001000 _- $0 5-Year1 1 Average 12/31/2015 12/31/2014 12/31/2013 12/31/12 12/31/11 INTotal CCCSD Unfunded Liability $112,324,433 88,182,228 100,955,188 120,792,362 142,523,585 109,168,803 O&M BUDGET HIGHLIGHTS :0 PROVIDING NECESSARY STAFFING • Continuing with 290 full-time equivalent positions funded per Raftelis staffing analysis recommendation • Reallocations: - Management Analyst (Administration) replacing Human Resources Analyst - Management Analyst (Engineering) replacing Engineering Assistant III Risk Management Analyst replacing Risk Management Technician -! 12 �1 CAPITAL BUDGET HIGHLIGHTS : INFRASTRUCTURE INVESTMENT is CIB increases. by $6 million, due primarily to the treatment plant funding increase of $4.9 million (37%) • Funding: - CIB revenues are budgeted at $39.3 million for FY 2017-18 versus $34.9 million for FY 2016-17, an increase of $4.4 million: - SSC allocated to Capital increases $2.1 million or 18.2% - Ad-valorem taxes increase $1 million, or 9% City of Concord increases $1 .5 million or 32% - Draw from reserves of $3.4 million � 13 1�]� CAPITAL IMPROVEMENT PROGRAM FUNDING SOURCES FY 2017-18 $39.3 ($MILLIONS) Other $1.4 City of Concord $6.0 Capacity Fees $5.9 ■ Ad Valorem Tax $12.1 r Sewer Service Charges $14.0 14i1 l7IL CAPITAL IMPROVEMENT PROGRAM EXPENDITURES FY 2017-18 $42.7 ($MILLIONS) Contingency $1.5 Recycled Water $0.5 General Improvements $4.3 Collection System $18.5 i Treatment Plant $18.0 • Revenues of $39.3 less expenditures of $42.7 = Draw from Reserve of $3.4 million 15 SELF INSURANCE BUDGET FY 2017=1 8 Operating Revenue Operating Expense $727 $936.5 ($Thousands) ($Thousands) Expected Technical Legal HHW Contribution Other $67 Losses $265 Services Services $75 I $65 $22 Insurance Premiums O&M Fund Contrbution $575 $585 • Revenues of $727 less expenditures of $936.5 = Draw from Reserve of $209.5 16 ; - ` DEBT SERVICE BUDGET FY 2017-1 8 Operating Revenue Operating Expense $3,819 $3,819 ($Thousands) ($Thousands) Interest Income Interest $46 � Payments $1,232 IPrincipal Ad Valorem Payments Tax $3,,773 $2,587 17 __ ' _ r RESERVE BALANCE PROJECTIONS .1 Projected Balance as of June 30, 201739 � 223775 $251135,F597 $ $70,.859,375 Change in Reserve $4,F945,113 ($3,446,200) ($ Transfers ($3,990,644) $3,990,644 $0 Projected Balance as of June 30, 2018 $40,,178,247 $25,680,041 $6,290,500 $72,01481788 Reserve Policy Target end of June 30, 2017 $37,380,661 $21,387,p060 $6,500,p000 $65r267.v721 Variance from Policy Target at June 30, 2017 $1,843.v117 $3,748,537 $0 $5,591,654 � w l .. r .a z h - 18 i .•.low • As JW • RO OSE A L IMPROVEMENTS PROGRAM DG T F1 SCAL YEAR 0 8 � v . . �. Board of Directors Meeting May 18, 2017 M .f. Operations Presented to: Engineering & Committee May 9, 2017 r Edgar J. Lopez, PIS » Capital Projects Division Manager r •ter--^'.+._ � ��� •ate. r r 19 "�- MAJOR CAPITAL PROJECTS ACCOMPLISHMENTS FY 2016-17: • Continued construction of the Pleasant Hill-Grayson Creek Trunk Sewer, approximately 70% of the sewer pipe has been installed • Completed approximately 17,580 feet of sewer renovation in Lafayette, Orinda, and nearby communities • Completed construction of the Sub 16 Electrical Switchgear project - this critical equipment powers the influent pumps at the Headworks Facility • Started construction of the Headworks Screening project • Started construction of the P&B Building Seismic project • Started the Design of the Solids Handling Facility Improvements — Phase 1 , including air emission scrubber pilot ri � 20211001 PROPOSED FY 01 =1 8 CAPITAL IMPROVEMENTS BUDGET Total Estimated Future i • ■ to Budget F - Program • • Complete Projects(3) • Complete i ■ (1) (2) in w r Projects Collection System (CS) (1)+(2)+(3) $18,492,000 $17,180,000 $106,261,000 $141.,933,000 $353.,249,000 Treatment ■lant(TP) $18,045,000 $18y707.,000 $136,758,000 $173,510,000 $446,p5210000 General Improvements(GI) $4,277,000 2,912,000 $8,398,206 $15,587,206 $291024,000 Recycled $460,000 $540,000 $12,527,000 $13,527,000 $24,873,000 $1,500,000 $1,500,000 $0 $3,000,000 $19,000,000 s - r $42,774,000 $40,839,000 $263,944,206 $347,557,206 $872,667,000 � . T Total Estimated Budget over the next 5 years up to FY21-22 CENTR%L 21 - FY 017=18 CS ROGRAM SUMMARY ToTAL ESTIMATED COSTS PER PROJECT - 5991 Pleasant Hill Sewer Renovation- Phase 2 $300,000 $O $O $1,883,000 $2,183,000 6602 South Jackson Contractual Assessment District CAD $333,867 $0 $0 $O $333,867 6603 North Jackson Contractual Assessment District CAD $O $400,000 $0 $D $400,000 8412 Pleasant Hill-Grayson Creek Trunk Sewer $12,900,000 $800,000 $O $O .$13,700,000 8417 Survey Monument Install $250,000 $50,000 $60,000 $O $360,000 8418* Collection System Modeling Support $o $100,000 $100,000 $300,000 $500,000 8419 Collection System Planning $670,000 $200,000 $200,000 $600,000 $1,670,000 TBD* Development Sewerage Support $0 $450,000, $450,000 $1,350,000 $2,250,000 8422 Walnut Creek Sewer Renovation- Phase 11 $1,753,000 $2,181,000 $0 $0 $3,934,000 8430 Lafayette Sewer Renovation-Phase 11 $650,000 $3,717,000 $0 $0 $4,367,000 8433 S.Orinda Sewer Renovation-Phase 6 $0 $3,752,238 $102,238 $1,500,000 $2,150,000 8434 Collection System Urgent Repairs $0 $716,000 $316,000 $100,000 $300,000 8435* Walnut Creek Sewer Renovation- Phase 12 $0 $1,000,000 $3,100,000 $O $4,100,000 8436 Pump Station Upgrades $450,000 $886,000 $1,746,000 $30,389,000 $33,471,000 8437 Martinez Sewer Renovation-Phase 5 $0 $0 $4,095,000 $625,000 $3,470,000 8440* Pipe Bursting Contract 2017-2020 $0 $700,000 $2-50,000 $250,000 $1,200,000 8441* CIPP Contract 2017-2020 $0 $300,000 $100,000 $100,000 $500,000 8442* Pump Station Equipment&Piping Re lacement-Phase 2 $0 $o $100,000 $400,000 $500,000 8443* Large Diameter Pipeline Inspection Program $0 $200,000 $200,000 $1,600,000 $2,000,000 8444* Force Main inspection Program $O $75,000 $75,000 $390,000 $540,000 8445* North Orinda Sewer Renovation- Phase 7 $O $636,000 $3,425,000 $0 $4,061,000 8446 Lafayette Sewer Renovation-Phase 12 $0 $636,000 $3,475,000 $O $4,111,000 8447* Pump Station Security Improvements $0 $131,000 $2,620,000 $249,000 $2,240,000 8448* Manhole Modifications $0 $400,000 $400,000 $1,200,000 $2,000,000 New Projects TBD* Collection System Sewer Renovation $0 $560,000 $800,000 $65,559,000 $66,919,000 Total Program $18,350,105 $18,492,000 $17,184,000 $106,261,000 $160,283,105 - 22 Fy 201 7-1 $ COLLECTION SYSTEM PROGRAM MAJOR PROJECTS FOCUS Sewer Renovation: • Complete Pleasant Hill-Grayson Creek Trunk Sewer • Lafayette Phase 11 includes 8,400 feet of sewers • Martinez Phase 5 includes 8,700 feet of sewers • Walnut Creek Phase 11 includes 9, 100 feet of sewers • Designs for Orinda, Martinez, Walnut Creek, and Pleasant Hill Pumping Stations: • Pump Stations Improvements Design for Moraga, Orinda Crossroads, Martinez, Maltby, Fairview, and Flushkleen No capacity driven projects (Not including developer and CADS 23 FY 01 7=1 8 TP ROGRAM SUMMARY ToTAL ESTIMATED COSTS PER PROJECT * -rIn Pump&Blower Building Seismic 7291 lUpgrade 1 $4,424,000 $2,358,000 $0 $0 $6,78277-Y ,000I 7292 Switch ear Refurbishment-Phase 2 $420,000 $350,000 $200,000 $220,000 $1,190,000' 7301 Treatment Plant Planning $0 $450,000 $450,000 $1,500,000 $2,400,000 7304 PLC Systems Upgrades - $435,000 $140,000 $110,000 $330,000 $1,015,000 7314 Treatment Plant Urgent Repairs $115,000 $450,000 $200,000 $450,000 $1,215,000 7315 Applied Research&Innovations $257,274 $300,000 $400,000 $1,500,000 $2,457,274 Plant Control System Network 7317 U12grades $260,000 $70,000 $100,000 $0 $430,000 7320 Plant Energy Optimization(Co Gen) $718,000 $376,000 $0 $0 $1,094,000 7322 Fire Protection System-Phase 2 $840,000 $360,000 $0 $0 $1,200,000 7326 Equipment Replacement $866,000 $350,000 $250,000 $0 $1,466,000 7327 Headworks Screenings Upgrade $2,500,000 $5,644,000 $76,000 $0 $81-220,000 Influent Pump Electrical 7328* Improvements $0 $100,000 $650,000 $3,860,000 $4,610,000 7329 FurnaceBurnerUpgrades $370,000 $400,000 $0 $0 $770,000 7330 Piping Renovation-Phase 9 $241,000 $1,075,000 $184,000 $0 $1,500,000 Plant Control System 1/0 7339 Replacement $320,000 $200,000 $5S0,000 $3,300,000 $4,370,000 Walnut Creek/Grayson Creek Levee 7341 Rehab $0 $100,000 $500,000 $500,000 $1,100,000 Solids Handling Facility 7348 Improvements-Phase 3. $2,350,000 $2,625,000 $8,200,000 $53,264,000 $66,439,000 7349* Aeration and Energy Upgrades $0 $300,000 $1,000,000 $57,217,000 $58,517,000 7351* Mechanical and Concrete Renovations $0 $210,000 $590,000 $5,306,000 $6,106,000 7352* 1-UV Disinfection Upgrades $0 $350,000 $450,000 $0 $800,000 7353* Outfall Improvements-Phase 7 $0 $200,000 $350,000 $3,873,000 $4,423,000 Treatment Plant Security I 7354* Improvements $0 $87,000 $170,000 $1,530,000 $1,787,000 7355* Odor Control Up&rades-Phase 1 $0 $150,000 $1,787,000 $2,048,000 $3,985,000 7357* Plant-Wide Instrumentation Upgrades $0 $100,000 $190,000 $1,710,000 $2,000,000 7358* Innovative Bioenergy Demonstration $0 $200,000 $200,000 $0 $400,000 Solids Conditioning Building Roof 7359* Replacement $0 $500'000 $600,000 $0 $1,100,000 7360* Existing Plant Facilities As-Is Drawings $0 $1.00,000 $100,000 $150,000 $350,000 Treatment Plant Safety Enhancement- New Projects TBD* Phase S $0 $1.00,000 $100,000 $0 $200,000 Plant Operations Building(POB) TBD* Seismic Upgrades $ $400,000 $1,300 $0 $L 700,000 0 000 Total Program l $14,116,274 $18,04S,000 $18,707.000 I$136,758,000 $187,626,274 24 `' FY 2017-1 8 TREATMENT PLANT PROGRAM MAJOR PROJECTS FOCUS Rehab and Replacement: • Headworks Screening Project (Construction) • Piping Renovations Ph ase 9 (Construction) • Equipment Replacement (Construction) • Solids Handling Facilities Improvements Phase 1 (Design) • SCB Roof Replacement (Design and Construction) Sustainability: • Pump and Blower Seismic Upgrades (Construction) 13 New Projects Initiated: Examples: Odor Control, Aeration/ Energy Upgrades, Outfall, POB Improvements, and others 25 /�(1�L1►)IZ FY 2Q17-18 GI PROGRAM SUMMARY TOTAL ESTIMATED COSTS PER PROJECT 8207 General Security and Access $47,616 $67,000 $82A0 $442,000 $638,616 Geographic Data Integration (GDI) 8227 Treatment Plant $265,000 $160,000 $0 $0 $425,000 8230 Capital Legal Services $138,665 $20,000 $20,000 $60,000 $238,665 8236 District Easement Acquisition $143,1047 $50,000 $50,000 $150,000 $393,047 Asset Management Program 8238 Development $1,989,185 $950,,000 $500,000 $0 $3,439,185 Information Technology (IT) 8240 Development $2,418,,794 $730,000 $830,000 $3,196,206 $7,175,000 8243 Server Room Relocation $455,430 $1,000,000 $280,.000 $0 $1,735,430 8247* Property and Building Improvements $0 $400,000 $250,000 $1,250,000 $1,900,000 8516 Equipment Acquisition $526,000 $150,000 $150,000 $600,000 $1,426,000 8517 Vehicle Replacement Program $524,000 $675,000 $650,000 $2,400,000 $4,249,000 TBD* Cyber Security $0 $75,000 $100,000 $300,000 $475,000 Total Program $6,507,737 $4,277,000 $2,912,000 $8,398,206 $22,094,943 * New Projects 26 I FY 201 7-1 8 GENERAL IMPROVEMENTS PROGRAM MAJOR PROJECTS FOCUS Asset Management Program: • Complete Computerized Maintenance Management Systems (CMMS) • Initiate Program Management Information System (PMIS) Implementation IT Development: • Enterprise Resource Planning (ERP) Improvements • Infrastructure Improvements • Cyber Security (New) Buildi ng Improvements: • Server Room Relocation • Security and Public Facilities Improvements (New) FY 017=18 REW ROGRAM SUMMARY TOTAL ESTIMATED COSTS PER PROJECT 7306 Zone 1 Recycled Water $467,894 $30,000 $40,000 $150,000 $687,894 7346 ReW Distribution Surge Analysis $55,000 $100,0000 0$ $ $155,000 7361 Filter Plant Improvemenis $0 $330,000 $500,000 $121377,000 $13,2071000 Total Program $522,894 $460,000 $540,P,000 $ $14,049,894 p 28 10-YEAR CAPITAL IMPROVEMENT PROJECTS (CIP) $873 MILLION (M) TOTAL (2017-2027) Treatment Plant ($446 M) • Liquid Treatment Process $ 173 M • Solids Handling Process Treatment $ 153 M • General Treatment Plant Improvements/ Safety $ 120 M Collection S ystem ($353 M) • Replacement and Rehabilitation $ 298 M • Pumping Stations $ 39 M • Regulatory Compliance $ 10 M • CAD's and Developer Sewers $ 6 M General Improvements & Recycled Water ($55 M) • IT Development $ 11 M • Asset Management (CMMS, PMIS) $ 2M • Recycled Water $ 25 M • Buildings/ Properties/ Others $ 17 M CIP Contingency $ 19 M 29 /CCI���►711 JUNE 19 2017 PUBLIC H ARING Approve ■ ■ Operations Maintenance Capital■ improvement t Self� insurance 44 Debt -•it�iti ■ Service r, t, 1 ClNTRU i;w19:1-lyT1 51 - -i 30 r V