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Home My WebLink About05.c. Receive Pre-Audit Fiscal Year 2021-22 Capital Improvement Budget Year-End Status ReportPage 1 of 10 Item 5.c. F__1_448�411C_S0 October 25, 2022 TO: FINANCE COMMITTEE FROM: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER REVIEWED BY: PHILIPLEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE PRE -AUDIT FISCAL YEAR 2021-22 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 3, 2021, after which the Board adopted the FY 2021-22 Cl B. The proposed revenue and estimated expenditures for FY 2021-22 Cl B were approximately $66,363,421 and $105,455,000, respectively. Based on the pre -audit June 2022 financial statements, the actual revenues and expenditures including carry -forward and budget transfers are $32,343,693 and $73,636,093, as detailed in Attachment 1 - Pre -Audit FY 2021-22 Cl B Year -End Status Report. Attachment 2 is the presentation staff will review with the Committee prior to the Board meeting. Strateaic Plan re -In GOAL ONE: Customer and Community Strategy 1 - Deliver high -quality customer service GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations, Strategy 3 - Be a partner in regional development of local water supply GOAL FOUR: Governance and Fiscal Responsibility Strategy 3 - Maintain financial stability and sustainability GOAL FIVE: Safety and Security Strategy 1 - Reduce and eliminate risks of injury or illness, Strategy 2 - Protect personnel and assets from threats and emergencies GOAL SIX: Infrastructure Reliability Strategy 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 64 of 105 Page 2 of 10 GOAL SEVEN: Innovation and Agility Strategy 1 - Leverage data analytics to become a more efficient utility ATTACHMENTS: 1. Pre -Audit FY2021-22 C I B Year -End Status Report 2. Presentation October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 65 of 105 Page 3 of 10 Attachment 1 Pre -Audit Fiscal Year (FY) 2021-22 Capital Improvement Budget (CIB) Year -End Status Report Sewer Construction Fund (Fund 20): "(Variance) Revenue Sewer Service Charge $10,035,739 $10,267,767 2.3% Ad Valorem Taxes $6,940,168 $8,856,057 27.6% Capacity Fees $5,799,000 $4,418,244 -23.8% Pumped Zone Fees $151,000 $133,938 -11.3% Developer Fees $296,000 $293,099 -1.0% Interest Income $319,000 $342,006 7.2% City of Concord $8,700,914 $7,799,702 -10.4% Other Revenue Sources $1,600 $232,881 >100% Sub -total Revenue $32,243,421 $32,343,693 0.31 % State Revolving Fund Loan Proceeds $34,120,000 $0 - Total Revenue Projected $66,363,421 $32,343,693 -51.4% Program Approved Budget - Budget** to-Actua to -Actual Expenditures Collection System $39,795,000 $49,507,745 $31,375,554 -21.1 % -36.6% Treatment Plant $45,230,000 $65,878,267 $24,360,324 -46.1 % -63.0% General $3,830,000 $5,432,436 $2,191,232 -42.8% -59.7% Improvements Recycled Water $16,600,000 $19,825,679 $15,708,983 -5.4% -20.8% Total $105,455,000 $140,644,127 $73,636,093 -30.2% -47.6% Expenditures October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 66 of 105 Page 4 of 10 Attachment 1 Pre -Audit Fiscal Year (FY) 2021-22 Capital Improvement Budget (CIB) Year -End Status Report NOTES: Contingency budget at beginning of year was $2,500,000 and not included at year end, any remaining balance will be a positive variance to the sewer construction fund. The balance was $2,346,000. The budgeted figures below also exclude project close-out savings of $2,846,519. The total FY 2021-22 CIB authorized spend gross of contingency and close-out savings known at year end is $145,836,673. *` Includes carry -forward from past fiscal years and transfers October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 67 of 105 Page 5 of 10 Attachment 2 October 25, 2022 PRE -AUDIT FISCAL CAPITAL W-7LW4W IMPROVEMENT BUDGET YEAR-END q STATUS REPORTLmwa��AILAM Finance Committee Edgar J. Lopez, P.E. Capital Projects Division Manager PRE -AUDIT FY 2021-22 REVENUE IBudget Actual Budget-t Revenue Sewer Service Charge $10,035,739 $10,267,767 2.3% Ad Valorem Taxes $6,940,168 $8,856,057 27.6 % Capacity Fees $5,799,000 $4,418,244 -23.8% Pumped Zone Fees $151,000 $133,938 -11.3% Developer Fees $296,000 $293,099 -1.0% Interest Income $319,000 $342,006 7.2 % City of Concord $8,700,914 $7,799,702 -10.4 % Other Revenue Sources $1,600 $232,881 >1001/. Sub -total Revenue $32,243,421 $32,343,693 0.31% State Revolving Fund Loan Proceeds $34,120,000 $0 - Total Revenue Projected $66,363,421 $32,343,693 -51.49/6 October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 68 of 105 Page 6 of 10 PRE -AUDIT FY 2021-22 EXPENDITURES 1 (Variance) f Programiance) f ..12 Actual Budget- Carry .,.to -Actual to -Actual Expenditures Collection System $39,795,000 $49,507,745 $31 ,375,554 -21.1 °% -36.6°% Treatment Plant $45,230,000 $65,878,267 $24,360,324 -46.1 °% -63.0°% General $3,830,000 $5,432,436 $2,191,232 -42.8°% -59.7°% Improvements Recycled Water $16,600,000 $19,825,679 $15,708,983 -5.4% -20.8°% Total $105,455,000 $140,644,127 $73,636,093 -30.2% -47.6°% Expenditures NOTES Contingency budget at beginning of year was $2,500,000 and not included at year end, any remaining balance will be a positive variance to the sewer construction fund. The balance was $2,346,000. The budgeted figures below also exclude project close-out savings of $2,846,519. The total FY 2021-22 CIB authorized spend gross of contingency and close-out savings known at Yearend is $145,836,673. " Includes carry -forward from past fiscal years and transfers hb s, 3 CAPITAL PROGRAM - MAJOR REASONS FOR PROJECT VARIANCES IN FY 2021 • Construction projects timelines are not going as projected. • Timelines are being driven by vendor delivery and material shortages including metals, electrical, resins, and equipment manufacturing. • Approximately up to $25 million of construction commitments (contractor and consultant) have been rescheduled into 2022. • Treatment Plant and Recycled Water Programs are the most impacted due to seasonal and operational constraints. • Assumptions in project delivery are being revisited for next budget cycle and will include changes moving forward. 4 October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 69 of 105 2 Page 7 of 10 MAJOR PROJECT VARIANCES (41 MILLION) - COLLECTION SYSTEM PLANNING Large Diameter Pipeline Inspection Program, $1,626,791 Funds are available in FY $85,730 District Project (DP) 8443 2022-23. Large Diameter Piping Renovation Program, DP $2,000,000 $302 Awaiting inspection results 100007 from DP 8443. Force Main Inspection $1,109,475 $2,607 Funds are available in FY Program, DP 8444 2022-23. 5 MAJOR PROJECT VARIANCES (>$1 MILLION) - COLLECTION SYSTEM PROJECT COORDINATION Pleasant Hill Sewer Coordinating with CC Water, Renovations, Phase (Ph.) $1,177,238 $42,586 PG&E, and City. Project in 2, DP 5991 design. Land acquisition longer than Pump Station Upgrades, $3,613,636 $1,022,867 anticipated due to utility ROW. Ph. 2, DP 8457 2A Contract awarded and awaiting Notice to Proceed. Martinez Sewer Coordinated with City Paving Renovations, Ph. 7, DP $2,203,174 $259,863 project. Contract award 8464 scheduled this October. .1 October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 70 of 105 3 Page 8 of 10 MAJOR PROJECT VARIANCES (41 MILLION) — COLLECTION SYSTEM SCHEDULES MODIFIED Pump Station Upgrades, $15,051,580 $13,820,107 Construction completed in FY Ph. 1, DP 8436 2022-23. Walnut Creek Sewer Funds are available in FY Renovations, Ph. 15, DP $4,872,965 $3,594,771 2022-23. 8465 7 MAJOR PROJECT VARIANCES ($1 MILLION) — TREATMENT PLANT PROJECT CHANGES Solids Handling Facility $18,830,205 Improvements, DP 7348 Plant Wide Instrumentation $1,310,515 Upgrades, DP 7357 Solids Handling Facility %7PW'%aYu4' PrograR,600,000 UV Disinfection $2,306,768 Replacement, DP 100012 Aeration Basins Diffuser Replacement & Seismic $2,284,903 Upgrades, DP 100019 A Project being repackaged, $2,747,846 reduced scope and coordinated with Phase 2. $0 Optimization group leading and awaiting IT Master Plan $191,043 Planning in progress, funds available for FY 2022. $1,045,869 Pre -purchase changed to pre- selection, design in progress. Pre -purchase changed to pre- $817,601 selection, project phased and design in progress. October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 71 of 105 4 Page 9 of 10 MAJOR PROJECT VARIANCES ($1 MILLION - TREATMENT PLANT SCHEDULES MODIFIED Treatment Plant Piping Renovations, Ph. 10, DP $4,782,587 7369 Annual Infrastructure $2,418,966 Replacement, DP 7370 a VOg%F((Wi(Prigra�,042,498 DP1 0001 Air Conditioning and Lighting Renovations, DP $1,249,734 100010 Electric Blower $8,233,172 Improvements, DP 100015 I $1,223,992 Construction ongoing and funds available for FY 2022. Equipment and long lead items $805,407 impacting spending. Funds available for FY 2022 Several contracts in place, $19,493 awaiting materials and start of construction. Funds available for FY 2022, $380 seeking energy rebates and program incentives. $4,979,230 Construction ongoing and funds available for FY 2022. MAJOR PROJECT VARIANCES ($1 MILLION) RECYCLED WATER SCHEDULE MODIFIED Filer Plant and Clearwell Improvements, Ph. 1A, $18,165,424 DP 7361 10 Construction ongoing and funds $15,563,494 will carry over and be available in FY 2022. October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 72 of 105 5 Page 10 of 10 Questions? 11 October 25, 2022 Regular FINANCE Committee Meeting Agenda Packet - Page 73 of 105