PUBLIC
WORKS
Fiscal Year 2023-24
Proposed Budget
Water Reclamation & Sewer Fund 494
City Council
May 16, 2023
2 FUND 494 OVERVIEW
Capital
Materials,
Supplies &
Services
Salaries &
Benefits $2,091,258 $2,236,876
$16,815,696 $17,023,562
$4,184,126 $2,849,194
$23,091,080
$22,109,632
FY 2022-23 FY 2023-24
3 FINANCIALS
FY 2022-23 FY 2023-24
Year-to-Date (1) Proposed Budget
Revenues
Operating 18,766,000$ 19,495,347$
Non-Operating 470,000 1,411,075
Total 19,236,000$ 20,906,422$
Expenses
(2)
Operations & Maintenance (20,815,018)$ (19,161,953)$ Non-Operating (63,085) (63,085)
Total (20,878,103)$ (19,225,038)$
Change in Net Position (1,642,103)$ 1,681,384$
(1) Data as of 5/8/23
(2) Expenses excludes FY 2019-20 Additional CalPERS UAL Payment (Fund 494 Portion), since it's a payment reduction in pension liability 4 CASH RESERVES
FY 2022-23 FY 2023-24
Year-to-Date (1) Proposed Budget
Estimated Beginning Cash Balance 43,479,030$ 25,901,936$ Change in Net Position (1,642,103) 1,681,384
Depreciation 3,081,130 3,278,388
Obligations
Bond Principal Payments (1,116,332) (1,226,332) CIPs & Capital Outlay (17,805,389) (2,739,194)
CalPERS UAL One-Time Payment (94,400) (35,400) Estimated Ending Cash Balance 25,901,936$ 26,860,782$ Reserves for Financial Policies (8,867,866) (8,945,365) Reserves for Hyperion (10,308,185) (10,308,185) Estimated Unrestricted Cash Balance 6,725,885$ 7,607,232$ (1) Data as of 5/8/23
5 o The proposed increases for Single Family Residential sewer services are:
o Rate increase needed to provide funding for projected increases in costs for:
• Contractual charges from City of Los Angeles
• Capital improvement projects
• Inflationary impacts to labor, chemical, and
electrical costs to operate the BWRP
o Proposing a 4% increase for both FY 2023-24 & FY 2024-25
SEWER FUND RATES
Proposed
FY 23/24 FY 2022-23 FY 2023-24 Monthly %
Adopted Rate Proposed Rate Impact Change
$26.17 $27.22 $1.05 4.0%
FY 24/25 FY 2023-24 FY 2024-25 Monthly %
Proposed Rate Proposed Rate Impact Change
$27.22 $28.31 $1.09 4.0%
BURBANK SEWER RATES VS. INFLATION
6 25.66 25.66
26.17 27.22
28.31 26.62
27.15 28.24
29.37 30.54
2020-21 2021-22 2022-23 2023-24 2024-25
City of Burbank Rates
Inflation (CPI-U)
FY 2023-24 SEWER RATE
COMPARISON
7 $- $10 $20 $30 $40 $50 $60 $70 $80
Los Angeles
San Diego
South Pasadena
Pasadena
Burbank
Glendale
$58.00
$54.53
$30.45
$28.15
$27.22
$23.69
Proposed increase is $1.05
WHAT SERVICES DO FEES COVER?
o Operation and Maintenance of:
• 2 Sewer Pump Stations
• Burbank Water Reclamation Plant
(BWRP)
Compliance with State and
Federal mandates
Generation of recycled water
o In FY 23-24, Public Works will continue
working with the RWQCB to renew the
City’s NPDES Permit for BWRPBWRP
8 o Annual cleaning & video inspection of:
• 230 miles of sewer mains & 3,800 sewer manholes
o In 2022, there were only two (2) Sanitary Sewer Overflows • Excellent for a City the size of Burbank
o Capital Improvement Program Projects
Combo Truck CCTV Van
WHAT SERVICES DO FEES COVER?
(cont’d)
9 PROJECT HIGHLIGHTS – PROVIDENCIA
PHASE II – SEWER IMPROVEMENTS
Providencia – Phase I Construction 10
o Joins completed Phase 1 project,
continues under Freeway and Metro
ROW, and along Providencia to
Varney Street
o Provides capacity upgrades
o In Construction: March – July 2023
o Construction Cost: $2.82M
o Phase 1 project along Chandler Blvd.
from California Street to Lake Street
o Provides capacity upgrades
o Design Engineering previously
funded and scheduled for
completion in FY 2023-24
o Total Project Cost: $6.2M
11 PROJECT HIGHLIGHTS – CHANDLER
SEWER IMPROVEMENTS – PHASE I
Reference: Leland Sewer Improvements
ADDITIONAL HIGHLIGHTS –
L.A. HYPERION SEWER
City of LA – Hyperion WRP
12 o Continue to make significant progress
on Hyperion Sewer flow and billing
discrepancy
o Negotiations with Los Angeles –
2019 - 2023
o Payments to Los Angeles totaling
approximately $28.2M
(Including FY 22-23 Payment)
o Maintaining Hyperion Reserve
ADDITIONAL HIGHLIGHTS –
SEWER TECHNICAL STUDY
13 o Sewer Technical Study for the Downtown, Golden State, and Media District Specific Plans:
• Joint effort with CDD – Consultant Selected (HDR)
• Currently evaluating sewer capacity needs in both Collection System and at BWRP resulting from recent updates to City’s Housing Element
• Not-to-Exceed Contract executed for $365,000
• Scheduled to be completed in Summer 2023
ADDITIONAL HIGHLIGHTS –
SEWER SYSTEM MANAGEMENT PLAN
14 o Sewer System Management Plan (SSMP):
• State updated Waste Discharge Requirements (WDRs) for Sanitary Sewer Systems, effective June 5, 2023
• Sewer capacity needs for Rancho SP area to be included • PW & BWP will be jointly evaluating the City’s Recycled Water System in relation to Sanitary Sewer System
• Recommended funding for SSMP in FY 22-23 is $400k
• Scheduled to be completed Spring 2024
WASTEWATER ENGINEERING –
DEVELOPMENT REVIEWS
15 o In FY 22-23 (through April 2023), Public Works -
Wastewater Engineering staff:
• Set Development Conditions on 78 proposed projects
• Reviewed plans & provided comments on:
1,046 Building Permits
256 Excavation Permits
• Completed 7 Sewer Capacity Analysis (SCA) studies
for large developments
WASTEWATER DIVISION STAFF -
NON-GENERAL FUND
16 o Identified need for two additional Civil Engineering Associate positions to:
• Address the continually increasing complexity of wastewater regulations related to the BWRP NPDES Permits
• Assist with regulatory compliance for Stormwater Quality under separate NPDES Permits
• Manage Capital Improvement Projects for Sanitary Sewer System
WASTEWATER DIVISION STAFF -
NON-GENERAL FUND (cont’d)
17 • Review/condition an increased number of Development Projects, due to:
City's recent Housing Element updates
Continuing State legislation on housing
o Both new positions will be funded with a combination of Sewer Enterprise Funds (85%) and Measure W Funds (15%)
o FY 22-23 was the first time in the last 10 years that dedicated positions were added to Wastewater Division
• 1 Civil Engineering Associate
• 1 Collection Systems Leadworker
ADDITIONAL HIGHLIGHTS –
INTERIM SEWER FACILITIES CHARGES
18 (Included in Fee Schedule; not part of rates)
o Sewer Facilities Charges (SFCs) are one-time fees defined in BMC for increased sewage flows to City system required when property owners or developers:
• Redevelop or modify the land use on a parcel with existing sewer connection
• Add new connections to the City’s Sewer System
o Customers with new or increased sewer discharges are required to pay their fair share of the costs associated with sewer capacity enhancements
ADDITIONAL HIGHLIGHTS –
INTERIM SEWER FACILITIES CHARGES
19 (Included in Fee Schedule; not part of rates)
o Existing SFCs in Citywide Fee Schedule implemented in July 2001 • Needs to be updated to reflect current construction costs o Interim SFC Study prepared by Black & Veatch prepared to:
• Establish unit charge that incorporates existing fixed assets, planned CIP projects, and future system needs
• Identify & incorporate legal requirements for ADUs
o SFCs to be reevaluated after SSMP Update completed
ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
20 (Included in Fee Schedule; not part of rates)
o Recommend increasing SFCs across customer classes, including for new housing, effective 7/1/23:
• Single Family Residential (SFR) from $814 to $2,043
• Multi-Family Apt or Condo from $667 to $1,674
• Professional Offices from $417 to $1,046 (per 1,000 SF) • Retail from $323 to $811 (per 1,000 SF)
ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
21 (Included in Fee Schedule; not part of rates)
o SFR Additions and ADUs will be charged on a proportional basis for added square footage
o Additional Footnotes:
• (d) Square footage added to an existing single-family residential dwelling unit will be evaluated for additional sewer facilities charges on a proportional basis considering the square footage of the existing residence and the average household size of 1,800 square feet.
• (e) Accessory Dwelling Units (ADU) greater than 750 square feet will be assessed a proportional sewer facilities charge based on the single-family residential rate and average household size of 1,800 square feet.
QUESTIONS?
PUBLIC
WORKS
22 ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
23 o SFR
ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
24 o ADU
ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
25 o SB 9
ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
26 o Wastewater System Valuation of existing assets conducted, and estimated a roughly $75M
o Replacement Cost Less Depreciation (RCLD) method to adjust original costs to reflect system
replacement costs in current
dollars and to address asset
depreciation
o Utilized to determine value of
remaining capacity in existing
facilities
Asset
Type Asset Description RCLD
Wastewater System
1 Land 5,700,632
2 Buildings 24,948,645
3 Infrastructure 31,722,783
4 Machine & Equipment 0
5 Othe r Facilitie s 12,778,362
6 Other Assets 31,923
7 Total 75,182,345$
ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
27 o Developed Comprehensive CIP Program to identify rehabilitation and expansion projects over 6 years (FY 21/22 to 26/27) o Incremental Cost Approach
utilized to identify new
infrastructure to expand
the sewer system
o Capacity expansion projects
estimated to roughly $46M
ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
28 o The maximum calculated capacity fee is $2,043 per Equivalent Dwelling Unit (EDU) for single-family residential based on the:
• System RCLD value
• Identified capital projects
• Total capacity
o Other User/Occupancy Types
have capacity ratio that is
proportional to standard EDU
• Charge is adjusted up
or down based on SFC
Rate Schedule
Line Total Applicable Unit
No. Description Costs EDUs Costs
($) (EDUs) ($)
Wastewater Capacity Fee
Existing Facilities
1 Value of Existing Facilitie s (RCL D) 75,182,345
2 Less Outstanding Debt Principal
3 2014 Revenue Bonds (5,590,000)
4 N e t Equity in Existing Facilitie s 69,592,345$ 57,870 1,203$ Future Facilities
5 Capti al Improvements Projects 45,979,569
6 Plus Capital Fund Reserves 2,645,707
7 N e t Equity in Future Facilitie s 48,625,276$ 57,870 840$ 8 Subtotal Capacity Charge 2,043
9 Total Wastewater Capacity Fee ($/EDU) 2,043$
10 Typical Re side ntial (1 EDU) 2,043$
ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
29 ADDITIONAL HIGHLIGHTS – INTERIM
SEWER FACILITIES CHARGES (cont’d)
30