HomeMy WebLinkAbout08. Hold a public hearing to receive public comment on the Fiscal Year (FY) 2024-25 Central San BudgetItem 8.
BOARD OF DI RECTORS
POSIT ION PA PER
M E E T ING D AT E:J UNE 6, 2024
S UB J E C T: HO L D A P UB L I C HE A R I NG TO R E C E I V E P UB L I C C O MME NT O N T HE
F I S C A L YE A R (F Y) 2024-25 C E NT R A L S A N B UD G E T F O R T HE
F O L L O W I NG F UND S: O P E R AT I O NS A ND MA I NT E NA NC E, C A P I TA L
I MP R O V E ME NT, S E L F -I NS UR A NC E, A ND D E B T S E RV I C E A ND F I ND T HE
P R O P O S E D F Y 2024-25 D I S T R I C T B UD G E T I S E X E MP T F R O M T HE
C A L I F O R NI A E NV I R O NME NTA L Q UA L I T Y A C T (C E Q A)
S UB M I T T E D B Y:
K E V I N MI Z UNO, F I NA NC E MA NA G E R
I NI T I AT I NG D E PART M E NT:
A D MI NI S T R AT I O N-F I NA NC E
RE V IE WE D B Y:E D G A R J . L O P E Z , C A P I TA L P R O J E C T S D I V I S I O N MA NA G E R
P HI L I P L E I B E R , D E P UT Y G M - A D MI NI S T R AT I O N
R oger S . B ailey
General Manager
IS S UE
Pursuant to Central S an's Budget P olicy (B P 048), prior to adoption of the budget, a public hearing must
be held to receive public comment f or the following f unds: Operations and Maintenance (O&M), C apital
I mprovement, S elf-I nsurance, and D ebt S ervice.
B AC K G RO UND
C entral San's draft F Y 2024-25 B udget book (A ttachment 1) was distributed to Board Members on May 2,
2024, at a regularly scheduled public meeting. T he following is a timeline of meetings where the proposed
F Y 2024-25 B udget has been reviewed by the Board and its Committees and made available to the public
for review and f eedback:
May 8 E ngineering & Operations Committee review of Capital I mprovement
B udget (C I B)
May 14 F inance C ommittee review of overall Budget with a f ocus on O&M, Self -
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I nsurance, and Debt Service
May 16 P resentation of B udget by staff at B oard Meeting
J une 6 P ublic Hearing on Budget Adoption
C ommencing on page 51 of the F Y 2024-25 draf t B udget book, the F inancial S ummary section provides a
comprehensive synopsis of the core elements of C entral San's entire budget including analysis of specific
funds, revenues, expenses, and reserves. A presentation providing an overview of the proposed F Y 2024-
25 budget was provided to the Board at the May 16, 2024 public meeting. A dditionally, a presentation
providing an overview of the F Y 2024-25 C I B as well as the long-term (ten-year) Capital I mprovement
Plan (C I P ) was provided to the B oard that same day.
At the May 16, 2024 meeting, the B oard was asked to review and provide feedback on the proposed F Y
2024-25 B udget following presentations by staff. I ncorporating f eedback f rom B oard Members as well as
various District staff, several revisions were made to the draft budget book provided to the Board on May
2, 2024, which are summarized in the attached C hange L og (A ttachment 2).
California Environmental Quality Act (C EQ A)
Staf f has evaluated the F Y 2024-25 O&M, Sewer C onstruction, S elf-I nsurance, and D ebt S ervice F und
budgets and concludes the adoption of these budgets are not projects, are ministerial in nature, and are
exempt from C E Q A . T hey are exempt under C entral San's C E Q A Guidelines Section 15301, since each
funds the ongoing operations of C entral San and the C I B f unds the operation, repair, maintenance,
permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities,
mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that
existing at the present time. Approval of the F Y 2024-25 B udgets will establish the B oard of D irectors’
independent finding that these budget documents are exempt f rom C E Q A.
T he B oard further f inds that, although the C I P Budget will authorize amounts of individual capital
improvement project spending, the adoption of the Budget does not authorize construction of any project
requiring C E Q A compliance documentation. Central S an either has or will produce appropriate C E Q A
compliance documentation prior to undertaking any "project" identif ied in these documents.
ALT E RNAT I V E S /C O NS I D E RAT IO NS
T he B oard has considered numerous financial planning alternatives and assumptions, most recently at the
April 4, 2024 publicly held f inancial workshop. T his budget reflects the policy direction provided in areas
including the composition and level of the Capital I mprovement B udget in the context of the
C omprehensive Wastewater Management Plan (C W MP), responsibly managing unf unded liabilities,
including f or f our (4) new permanent f ull-time equivalent (F T E) positions to address new needs and overall
guidance regarding the need for fiscal discipline and cost control.
F I NANC IAL I M PAC T S
Adoption of the proposed F Y 2024-25 budget will provide Central S an the resources necessary to
accomplish S trategic Plan Objectives directed by the B oard for that year. T he F Y 2024-25 budget was
prepared using the sewer service charge revenue assumptions per the proposed two-year rate plan.
Sewer service charge revenues in F Y 2024-25 are proportioned as follows: O&M 60.6%; Capital 37.9%;
Self -I nsurance 1.5%.
C O M M I T T E E RE C O M M E ND AT IO N
T he E ngineering and Operations Committee reviewed the C apital I mprovement budget on May 8,
2024. T he F inance C ommittee received a staf f presentation of the F Y 2024-25 O&M, Self -I nsurance, and
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D ebt S ervice f und budgets on May 14, 2024. B oth Board Committees provided f eedback to staf f , which
has been considered in the f inal version of the budget book recommended f or adoption by the B oard. A
log of revisions made subsequent to the distribution of the initial draft of the budget book on May 2, 2024,
has been attached hereto (A ttachment 2). A revised version of the budget book will be posted to the
C entral San website, under "F inancial I nf ormation".
RE C O M M E ND E D B O ARD AC T I O N
Hold a public hearing on the proposed budget and hear any public comment received and take the
following actions:
A. F ind that the F Y 2024-25 D istrict Budget is exempt from C E Q A
B. A dopt the F Y 2024-25 D istrict Budget f or the Operations and Maintenance; C apital I mprovement; S elf-
I nsurance; and D ebt S ervice f unds, as presented.
Strategic Plan Tie-I n
G O A L O N E: Customer and C ommunity
Strategy 1 – Deliver high-quality customer service
G O A L FO U R : G overnance and Fiscal R esponsibility
Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 2 - Encourage and facilitate
public participation, Strategy 3 - Maintain financial stability and sustainability
AT TAC HM E NT S :
D escription
1. Replacement Sheet- D raf t B udget 2024-25
2. F Y 2024-25 Budget Revision L og
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Attachment 1
Final Draft Central San
FY 2024-25 Budget
See separate Budget Binder distributed May 2, 2024.
The final draft Budget (as of May 31, 2024) is also available on
the District’s website as part of the Public Hearing Board agenda
item and in Public Notices section: www.centralsan.org
Please contact Katie Young, Secretary of the District, with any questions:
Telephone: (925) 229-7303
Email: kyoung@centralsan.org
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Attachment 2
FY 2024‐25 Budget Revision Log
This log includes substantive edits made to the FY 2024‐25 Budget Book distributed to the Board on May 2, 2024.
Section Page # Table/Paragraph Description of Change
Introduction 13
Environmental
Stewardship discussion.
Addition of: "Continued to provide flows for use by the Dublin San Ramon Services
District (DSRSD) East Bay Municipal Utility District (EBMUD) Recycled Water Authority
(DERWA)."
Introduction 18 Community Profile
Addition of: "A short distance away, the Cities of Concord, Walnut Creek, Pleasant Hill
and San Ramon boast revitalized shopping districts, drawing retailers and restaurants
from other parts of the state to open locations there. "
Introduction 18
Environmental
Stewardship table
Addition of: "Leadership in PFAS outreach and support of legislative efforts to address
PFAS."
Intro 27 1st paragraph missing a period in first sentence
Key Budget Priorities:
Responding to
Challenges 35
Environmental Stewardship under FY 2024‐25 Budgeted Project(s) added "Leadership in
PFAS outreach and support of legislative efforts to address PFAS."
Financial Summary 53 City of Concord
Addition of: "The cities are responsible for paying their flow‐proportional share of the
operating and maintenance costs and capital spending costs or associated debt service
for Central San’s treatment plant."
Operating Budget‐ GM 99
Below Personnel
Requirements Table
added: "* The GM Transitional positions for FY 2024‐25 are not currently allocated to
individual work groups, and would be assigned as needed with the approval of the GM
and Human Resources division ."
Operating Budget‐
Human Resources &
Organizational
Development
111 2nd paragraph, last
sentence
Budgeted Salaries & Wages reflect a slight increase noteworthy decrease of $0.2 million
or ‐10.1% due to agency wide cost of living adjustment and step increases for eligible
employees to a reduction in the amount of in‐service accrued compensated absence
payouts and expense accruals expected next fiscal year.
Operating Budget‐
Finance 120 Customer and
Community discussion
added: space before bullet. "Issued 64 non‐construction contracts totaling $15.6
million."
Operating Budget‐
Finance 121 Governance and Fiscal
Responsibility
Revised first bullet to "Formed a joint powers authority (JPA) with Regional San allowing
Central San to issue revenue bonds (lower interest than certificates of participation
(COPs)) without the need for the additional cost and time constraints associated with an
election to approve said bonds. "
Operating Budget‐
Finance 121 Governance and Fiscal
Responsibility
Added discussion regarding move from County Treasury. "•Took steps towards the
formation of an in‐house treasury function including appointment of a bank, resolution
for leaving county treasury and appointment of treasurer."
Operating Budget‐
Finance 123 Metrics Corrected year column headings by incrementing one year
Operating Budget‐
Finance 123 Metrics
Noted in a footnote that goal for insurance compliance will be increased from 70% in FY
2024‐26 strategic plan; Added clarification to measure: "Contractors (excluding
construction contractors)/ consultants in Compliance with Insurance Requirements"
Operating Departments 124 1st paragraph heading Should be FY 2024‐25 Strategic Objectives Title (says 2023‐24)
Operating Departments 138 Goal 5: Objectives
Add new row: "Perform assessments after key legal case resolutions for process
updates"
Operating Departments
143 FY 2023‐24
Accomplishments
Add new row: "•ConƟnued diversions of wastewater to DERWA (a partnership between
DSRSD and EBMUD) for use in their recycled water program; commenced discussions on
extension of the pilot program."
Operating Departments
146 1st paragraph, 2nd
sentence
The decrease is primarily attributable to an Administrative Services Supervisor and
Engineering Assistant position transferring to the Office of the Deputy General Manager
of Engineering & Operations and Financial Planning & Development Services
DivisionDepartment, respectively.
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Attachment 2
Section Page # Table/Paragraph Description of Change
Operating Departments 148 FY 2023‐24
Accomplishments Corrected "perfect" to "percent" half way down page.
Operating Departments
149
FY 2022‐24 Strategic
Targets and
Performance
Added footnote to explain 74% satisfaction figure. As of Q4, additional surveys have
been sent for two additional projects, Walnut Creek 16 and Martinez 7 projects.
Operating Departments 152 2nd paragraph, 2nd
sentence
The Capital Projects Division budget for FY 2024‐25 is ($0.4) million, reflecting a 5.0%
increase decrease from the prior year.
Operating Departments
155
FY 2024‐25 Strategic
Targets and
Performance
Considered potential for PFAS related goal. "We could include a separate goal that we
comply with all studies required by EPA or the State (we anticipate the possibility of
having to do more study work for EPA in the next couple years).
(Currently, we don’t have any PFAS permit requirements so it wouldn’t fit with the below
permit goal/strategy and the new reporting thresholds under CERCLA for disposal will not
impact us).
We also have separate goals in the Strategic Plan for pollution prevention – related to
“Educate on Pollution Prevention and Environmental Protection” and PFAS is part of the
overall pollution prevention portfolio.
Will give this issue further consideration before including goal in budget book.
Operating Departments
160
FY 2022‐24 Strategic
Targets and
Performance Removed "*" from 92.3%
Operating Departments 160 Table heading Should say FY 2022‐2024 (currently says 2023‐2024)
Operating Departments 161 1st paragraph heading Should be FY 2024‐25 Strategic Objectives Title (says 2023‐24)
Operating Departments 171 FY 2024‐25 Strategic
Objectives
Add new row: "Review & update Sewer Emergency response plan/procedures as needed
to protect the District from litigation."
Operating Departments
180
Budget Modifications
and Contributions to Key
Priorities Changed "Improvement" to "Improve"
Operating Departments
188
FY 2022‐24 Strategic
Targets and
Performance Removed "*" from 45
Operating Departments
193
FY 2022‐24 Strategic
Targets and
Performance Removed footnote regarding recycled water usage
Operating Departments 193 Table heading Should say FY 2022‐2024 (currently says 2024‐2026)
Operating Departments 195 1st paragraph
Several divisions support the Recycled Water Program. Personnel for the Recycled Water
Program are shown in their respective divisions and plus a total 2.03.6 full time
equivalents as shown below. A portion of their labor costs, as appropriate to their time
spent on the program, are included in the Recycled Water Budget. In addition, the
budget includes funding for two five temporary staff to operate the Residential Fill
Station and one intern to support recycled water planning.
Operating Departments
197 Sub‐Fund A: Actuarially
Based Risks
Question regarding coverage limits; will be discussed internally. Added note "Along with
this review, consideration of coverage limits, adequacy and potential gaps will be
undertaken."
CIP Intro 206 3rd paragraph deleted last sentence
CIP Intro 210 Regulatory Paragraph changed "overflows" to "spills"
CIP Intro 210 2nd paragraph
and some of the collection system facilities and piping were constructed as early as the
1940s and 1950s or prior.
CIP Intro 212 3rd paragraph Nutrient Optimization and Management Roadmap
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Attachment 2
Section Page # Table/Paragraph Description of Change
FY 2024‐25 Capital
Improvement Budget 214
The CIB budget to date is approximately $264.22 million. The budget needed for all
ongoing and new
projects in FY 2024‐25 is $75.71 million, including carry forward at $49.20 million. The
estimated budget for these projects in future years totals
$452.37 million. Combined, the total estimated budget for the identified projects is
$792.30 million. In
comparison, the 2024 Ten‐Year Plan is projected to be $1,003.08 million as shown below
in Table 1:
Table 1 – FY 2024‐25 CIB per Program (For Active Projects Only) changed Budget‐to‐
Date value from $87,099,256 to $86,299,256 for Collection System and updates totals
accordingly.
CIP Intro 215
Changed Collection System Sewer Renovation ‐ Phase 2 Estimated total project cost from
$61,553,000 to $60,753,000
CIP Intro 218 1st paragraph
added new last sentence. "A new permanent engineer has been added to this fiscal year
to assist in
delivery of the sewer renovation program"
CIP Collection Systems 223
First bullet point in first
set of bullet points changed "sanitary sewer overflows" to "spills"
CIP Collection Systems 223
Fourth bullet point in
second set of bullets
points changed "overflows" to "spills"
CIP Collection Systems 223 1st bullet list
added bullet #5 "Coordinate major relocation of large diameter sewers being impacted
by state agencies and their projects."
CIP Collection Systems 224 Table 2
changed 100039 Budget to date from $10,153,000 to $9,353,000. Updated totals
accordingly
CIP Project Summary
Sheets Collection
Systems 225
Second paragraph under
"Drivers" changed "sanitary sewer overflows" to "spills"; changed "overflows" to "spills"
CIP Project Summary
Sheets Collection
Systems 232
First paragraph under
"Drivers" changed "SSOs" to "spills"
CIP Project Summary
Sheets Collection
Systems 234
Second paragraph under
"Drivers" changed "SSOs" to "spills"; changed "overflows" to "spills"
CIP Project Summary
Sheets Collection
Systems 235
Second paragraph under
"Drivers" changed "SSOs" to "spills"; changed "overflows" to "spills"
CIP Project Summary
Sheets Collection
Systems 236
Second and third
paragraphs under
"Drivers"
2nd paragraph ‐ changed "SSOs" to "spills"; 3rd paragraph ‐ changed "overflows" to
"spills"
CIP Project Summary
Sheets Collection
Systems 239
Second paragraph under
"Drivers" changed "sewer service overflows" to "spills"
CIP Project Summary
Sheets Collection
Systems 243
Second paragraph under
"Drivers" changed "SSOs" to "spills"; changed "overflows" to "spills"
CIP Project Summary
Sheets Collection
Systems 245
Second and third
paragraphs under
"Drivers"
2nd paragraph ‐ changed "SSOs" to "spills"; 3rd paragraph ‐ changed "overflows" to
"spills"
CIP Project Summary
Sheets Collection
Systems 249
Second paragraph under
"Drivers" changed "sanitary sewer overflows" to "spills"; changed "overflows" to "spills"
CIP Project Summary
Sheets Collection
Systems 251
Second paragraph under
"Drivers" changed "sanitary sewer overflows" to "spills"; changed "overflows" to "spills"
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Attachment 2
Section Page # Table/Paragraph Description of Change
CIP Project Summary
Sheets Collection
Systems 252
Second paragraph under
"Drivers" changed "sanitary sewer overflows" to "spills"; changed "overflows" to "spills"
CIB CS Summary Sheets 252 Replaced most of the project description with provided text
CIP Project Summary
Sheets Collection
Systems 253
Second paragraph under
"Drivers" changed "sanitary sewer overflows" to "spills"; changed "overflows" to "spills"
CIP Treatment Plant 269 2nd bullet
Power new UV facility from a location that will allow for safe and reliable service
(coordinated with Sub 90 project) new location to allow simultaneous operation of the
UV system for consistency.
CIP Treatment Plant 270 2nd paragraph Updated text description
CIP Treatment Plant 273 2nd paragraph Updated text description
CIP Treatment Plant 277 3rd & 4th paragraphs Updated text description
CIP Treatment Plant 278 4th bullet added ...sprinkler alarm systems...
CIP Treatment Plant 283 2nd & 4th paragraphs
Capital Improvement Program (CIP) ‐ Future evaluations include secondary scum
and foam control, nutrient reduction roadmap, PFAS, potential water exchange impacts,
and energy optimization roadmap.
CIP Treatment Plant 285
1st & 2nd paragraphs,
new 5th bullet
...investigate new opportunities... ‐ (e.g., Suisun Bay nutrient modeling work PFAS and
NPDES required
studies and reports). ‐ Evaluate forever chemicals concerns such as PFAS and others.
CIP Treatment Plant 286
4th, 5th, & 7th
paragraphs
...This project will conduct update the Odor Control Facilities through condition
assessments,... ‐ Any Then rehabilitation or replacement of existing odor control
facilities, including optimizations to improve
safety and chemical dosing, will be completed. During design, proposed improvements
will include facility
modifications to protect from any impacts due to the highway expansion. ‐ Removed
Treatment Plant from Location(s).
CIB GI Summary Sheets 294 Description Corrected 2nd bullet from 4x2 Truck (6) to 4x4 Truck (6)
CIP General
Improvements 300 5th bullet Evaluate the Imhoff Place campus and provide security recommendations.
CIP Ten Year‐CIP Plan 317
First bullet point in
second set of bullet
points changed "sanitary sewer overflows" to "spills"
CIP 10‐Year Plan 317 3rd paragraph
The following Ten‐Year CIP section provides a general description of the plan and a
discussion of...
CIP Ten Year‐CIP Plan 319
Last line in last
paragraph changed "sewer system overflows" to "spills"
CIP 10‐Year Plan 319 New Subtitle Potential New and Unbudgeted Projects:
CIP 10‐Year Plan 322 2nd paragraph potential nutrient removal regulations, PFAS, confirm the optimal long‐term solids
CIP 10‐Year Plan 326 1st paragraph regulatory requirements, PFAS,address any capacity deficiencies
CIP 10‐Year Plan 327 added image
Debt 333
New paragraph after 1st
paragraph
In January 2023, the Board approved the execution of a Joint Powers Authority (JPA)
agreement with Sacramento Regional County Sanitation District, creating the Northern
California Sanitation Agencies Financing Authority. Being a part of this newly formed JPA
could facilitate the issuance of revenue bonds as a form of financing, which are expected
to be a lower cost form of financing than certificates of participation, which can be issued
through Central San’s Financing Authority.
Supplemental
Information 340 1st paragraph Space after first sentence before table
Glossary and Acronyms 352
Inserted line between
"Sinking Fund" and
"Staffing Plan" Inserted "Spills" as new term and "Sanitary Sewer Overflows" as definition
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Attachment 2
Section Page # Table/Paragraph Description of Change
Glossary and Acronyms 354 SSO acronyms Added "spills" as part of definition of acronym
Operating Departments 166, 169 ,
170 Text Changed "overflows" to "spills" and "SSOs" to "SSSs"
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