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Home My WebLink About07. Receive Pre-Audit Fiscal Year 2021-22 Capital Improvement Budget Year-End Status Report Page 1 of 10 Item 7. CENTRALSAN Jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT November 17, 2022 TO: HONORABLE BOARD OF DIRECTORS FROM: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER REVIEWED BY: PHILIPLEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION 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$32,243,421 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 FY2021-22 CIB Year-End Status Report. A revenue of$34,120,000 was anticipated from the State Revolving Fund loan under the Solids Handling Facility Improvements, District Project 7348. However, the project schedule and scope of work have been changed. Attachment 2 is the presentation 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 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 November 17, 2022 Regular Board Meeting Agenda Packet- Page 32 of 101 Page 2 of 10 GOAL SIX.Infrastructure Reliability Strategy 1 - Manage assets optimally, Strategy 2- Execute long-term capital renewal and replacement program ATTACHMENTS: 1. Pre-Audit FY2021-22 C I B Year-End Status Report 2. Presentation November 17, 2022 Regular Board Meeting Agenda Packet- Page 33 of 101 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 $34,120,000 $0 - Loan Proceeds Total Revenue Projected $66,363,421 $32,343,693 -51.4% Program t1iims Carry 11 Budget** to-Actua to-Actual . . - Budget* Actual Forward 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 Improvements $3,830,000 $5,432,436 $2,191,232 -42.8% -59.7% 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 November 17, 2022 Regular Board Meeting Agenda Packet- Page 34 of 101 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 November 17, 2022 Regular Board Meeting Agenda Packet- Page 35 of 101 Page 5 of 10 Attachment 2 November 17,2022 PRE-AUDIT FISCAL y , YEAR 2021-22 •- CAPITAL IMPROVEMENT BUDGET YEAR-END q y STATUS REPORT Board Meeting Edgar J.Lopez,P.E. Capital Projects Division Manager 1 PRE-AUDIT FY 2021-22 REVENUE Budget Actual Budget-t Actual 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 $34,120,000 $0 Loan Proceeds Total Revenue Projected $66,363,421 $32,343,693 -61.4% November 17, 2022 Regular Board Meeting Agenda Packet- Page 36 of 101 1 Page 6 of 10 PRE-AUDIT FY 2021-22 EXPENDITURES 1 f f Carry Programiance) (Variance) Actual Budget- 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 $140,6449127 $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. hb 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 s, 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 FY 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. A November 17, 2022 Regular Board Meeting Agenda Packet- Page 37 of 101 2 Page 7 of 10 MAJOR PROJECT VARIANCES (41 MILLION) - COLLECTION SYSTEM PLANNING Large Diameter Pipeline Funds are available in FY Inspection Program, $1,626,791 $85,730 2022-23. District Project(DP)8443 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. 1 MAJOR PROJECT VARIANCES (0$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 November 17, 2022 Regular Board Meeting Agenda Packet- Page 38 of 101 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 1 MAJOR PROJECT VARIANCES ($1 MILLION) - TREATMENT PLANT PROJECT CHANGES Solids Handling Facility Project being repackaged, Improvements,DP 7348 $18,830,205 $2,747,846 reduced scope and coordinated with Phase 2. Plant Wide Instrumentation $1,310,515 $0 Optimization group leading and Upgrades,DP 7357 awaiting IT Master Plan Solids Handling Facility 17'G 600,000 $191,043 Planning in progress,funds b W'%aYu4'ProgralT' available for FY 2022. UV Disinfection $2,306,768 $1,045,869 Pre-purchase changed to pre- Replacement,DP 100012 selection,design in progress. Aeration Basins Diffuser Pre-purchase changed to pre- Replacement&Seismic $2,284,903 $817,601 selection,project phased and Upgrades,DP 100019 design in progress. 1 November 17, 2022 Regular Board Meeting Agenda Packet- Page 39 of 101 4 Page 9 of 10 MAJOR PROJECT VARIANCES ($1 MILLION - TREATMENT PLANT SCHEDULES MODIFIED Treatment Plant Piping Construction ongoing and funds Renovations,Ph.10,DP $4,782,587 $1,223,992 available for FY 2022. 7369 Annual Infrastructure Equipment and long lead items Replacement,DP 7370 $2,418,966 $805,407 impacting spending.Funds available for FY 2022 R91VO,%F(Rl(P�j ra Several contracts in place, DP1 0001 g ,042,498 $19,493 awaiting materials and start of construction. Air Conditioning and Funds available for FY 2022, Lighting Renovations,DP $1,249,734 $380 seeking energy rebates and 100010 program incentives. Electric Blower $8,233,172 $4,979,230 Construction ongoing and funds Improvements,DP 100015 available for FY 2022. 1 MAJOR PROJECT VARIANCES ($1 MILLION) RECYCLED WATER SCHEDULE MODIFIED Filer Plant and Clearwell Construction ongoing and funds Improvements,Ph.1A, $18,165,424 $15,563,494 will carry over and be available DP 7361 in FY 2022. 1 November 17, 2022 Regular Board Meeting Agenda Packet- Page 40 of 101 5 Page 10 of 10 Questions? 41100 Nis- November 17, 2022 Regular Board Meeting Agenda Packet- Page 41 of 101 6