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Home My WebLink About09. Receive FY 2019-20 Pre-Audit Capital Improvement Budget Year-End Status Report Page 1 of 7 Item 9. CENTRALSAN SANITARYjdf A- hom CENTRAL CONTRA COSTA , . October 1, 2020 TO: HONORABLE BOARD OF DIRECTORS FROM: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ROGER S. BAILEY GENERAL MANAGER SUBJECT: RECEIVE FISCAL YEAR 2019-20 PRE-AUDIT CAPITAL IMPROVEMENT BUDGET YEAR-END STATUS REPORT The Board of Directors (Board) approves the Capital Improvement Budget (CIB) and Ten-Year Plan on a yearly basis. At fiscal year (FY) end, staff reviews and compares the final revenues and expenditures, based on the pre-audit financial reports, to update the Board on the progress of the Capital Improvement Program. A public hearing was held on June 6, 2019, after which the Board adopted the FY 2019-20 Cl B. The proposed revenue and estimated expenditures for FY 2019-20 Cl B were approximately$65,598,130 and $66,176,000, respectively. Based on the pre-audit June 2020 financial statements, the actual revenues and expenditures including carry-forward and budget transfers are $68,789,918 and $53,662,584, as detailed in Attachment 1 - Pre-Audit FY 2019-20 CI B Year-End Status Report. Attached is the presentation that staff will review with the Board. Strategic Plan Tie-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service GOAL TWO: Environmental Stewardship Strategy 1—Achieve 100% compliance in all regulations, Strategy 3— Support regional development of local water supply GOAL THREE:Fiscal Responsibility Strategy 1—Maintain financial stability and sustainability GOAL FOUR: Workforce Development Strategy 4—Meet or exceed industry safety standards GOAL FIVE:Infrastructure Reliability Strategy 1—Manage assets optimally to prolong their useful life, Strategy 2—Execute long-term capital renewal and October 1, 2020 Regular Board Meeting Agenda Packet- Page 54 of 104 Page 2 of 7 replacement program, Strategy 3—Protect personnel and assets from threats and emergencies GOAL SIX: Innovation and Optimization Strategy 2—Improve and modernize operations through technology and efficiency measures GOAL SEVEN:Agility and A daptability Strategy 1—Maintain a safe working environment for employees and the public during the COVID-19 pandemic ATTACHMENTS: 1. Pre-Audit FY 2019-20 CI B Year-End Status Report 2. Presentation October 1, 2020 Regular Board Meeting Agenda Packet- Page 55 of 104 Page 3 of 7 Attachment 1 Pre-Audit Fiscal Year (FY) 2019-20 Capital Improvement Budget (CIB) Year-End Status Report Sewer Construction Fund: Revenue Sewer Service Charge $32,219,130 $32,829,958 1 .9% Ad Valorem Taxes $14,520,000 $16,127,444 11 .1% Capacity Fees $5,750,000 $6,738,095 17.2% Pumped Zone Fees $291,000 $286,186 -1 .7% Developer Fees $514,000 $419,194 -18.4% Interest Income $674,000 $996,041 47.8% City of Concord $11,630,000 $11,393,000 -2.0% Total Revenue $65,598,130 $68,789,918 4.9% FY 2019-20 Y 2019-20 FY 2019-20 (Varianc CariT,-- . . Budget- Budget Expenditures Collection System $27,129,000 $26,076,084 $16,554,310 -38.9% -36.5% Treatment Plant $28,631,000 $33,778,998 $26,918,408 -5.9% -20.3% General Improvements $5,369,000 $8,410,766 $6,227,401 15.9% -25.9% Recycled Water $4,152,000 $5,968,494 $3,962,465 - 4.5% -33.6% Contingency' $895,000 ($435,319) - - - Total Expenditures $66,176,000 $73,799,023 $53,662,584 -18.9% -27.2% ' Contingency budget is used for any CIB program, at year end the remaining balance will be a positive variance to the sewer construction fund 2 Includes carry-forward and FY 2018-19 transfers October 1, 2020 Regular Board Meeting Agenda Packet- Page 56 of 104 Page 4 of 7 Attachment 2 oma. PRE-AUDIT FISCAL YEAR (FY) 2019-20 CAPITAL IMPROVEMENT BUDGET YEAR-END STATUS REPORT Board Meeting October 1, 2020 7 Edgar J. Lopez, P.E. Capital Projects Division Manager PRE-AUDIT FY 2019-20 REVENUE FY 2019-20 FY 2019-20 (Variance) Budget Actual .. Actual Revenue Sewer Service Charge $32,219,130 $32,829,958 1.9% Ad Valorem Taxes $14,520,000 $16,127,444 11.1% Capacity Fees $5,750,000 $6,738,095 17.2% Pumped Zone Fees $291,000 $286,186 -1.7% Developer Fees $514,000 $419,194 -18.4% Interest Income $674,000 $996,041 47.8% City of Concord $11,630,000 $11,393,000 -2.0% Total Revenue $65,598,130 $68,789,918 4.9% Iz 1 October 1, 2020 Regular Board Meeting Agenda Packet- Page 57 of 104 Page 5 of 7 PRE-AUDIT FY 2019-20 EXPENDITURES Expenditures Collection System $27,129,000 $26,076,084 $16,554,310 -38.9% -36.5% Treatment Plant $28,631,000 $33,778,998 $26,918,408 -5.9% -20.3% General $5,369,000 $8,410,766 $6,227,401 15.9% -25.9% Improvements Recycled Water $4,152,000 $5,968,494 $3,962,465 -4.5% -33.6% Contingency' $895,000 ($435,319) - - - Total Expenditures $66,176,000 $73,799,023 $53,662,584 -18.9% -27.2% 1 Contingency budget transferred to Capital Improvement Budget programs 2Includes carry-forward and FY 2018-19 transfers 13 MAJOR PROJECT VARIANCES ($1 MILLION BY PROGRAM Collection System Program r,,• r r r Pump Station Upgrades- Construction is expected to Phase 1,District Project $4,600,000 $3,032,667 start early and was impacted (DP)8436 due to COVID-19;funds are available in FY 2020-21 Construction is expected to Danville Sewer start early and was impacted Renovations-Phase 3, $4,100,000 $864,491 due to COVID-19;funds are DP 8456 available in FY 2020-21 14 Z October 1, 2020 Regular Board Meeting Agenda Packet- Page 58 of 104 Page 6 of 7 MAJOR PROJECT VARIANCES ($1 MILLION BY PROGRAM Treatment Plant Program Coordinating and conducting Steam and Aeration condition assessments is Blower Systems $3,500,000 $1,990,496 taking longer than anticipated Renovations,DP 7349 to coordinate with scheduled Operations and Maintenance activities Mechanical and Concrete Construction is ahead of Renovations,DP 7351 $6,400,000 $8,711,371 schedule.Project is within total budget Replacement infrastructure Annual Infrastructure $2,200,000 $584,997 identified,projects are being Replacement,DP 7370 designed or in process,funds are available in FY 2020-21 Is MAJOR PROJECT BUDGETS ($1 MILLION ROLLING OVER TO FY 2020-21 All Programs FY 2019-20 Remaining Budget Treatment Plant Safety Project is fully funded and construction is Enhancement-Phase 5, $1,138,905 to start soon and be completed by third DP 7364 quarter of FY 2020-21 Enterprise Resource Planning(ERP) $1,255,545 Project was impacted by COVID-19 and Replacement,DP 8250 start date(go live)has been postponed Filter Plant and Clearwell Project re-scoped as Phase 1Ain FY Improvements-Phase 2019-20 and budget remained to help 1A,DP 7361 $1,233,848 fund construction,which was recently awarded. AN 16 3 October 1, 2020 Regular Board Meeting Agenda Packet- Page 59 of 104 Page 7 of 7 QUESTIONS? 4 October 1, 2020 Regular Board Meeting Agenda Packet- Page 60 of 104