CITY OF POMONA
COUNCIL REPORT
March 21, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Chris Diggs, Water Resources Director
SUBJECT: AMENDMENT OF THE FY 2021-22 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET BY CLOSING COMPLETED PROJECTS AND UN-APPROPRIATING UNEXPENDED FUNDS RECOMMENDATION:
It is recommended that the City Council adopt the following Resolution:
RESOLUTION NO. 2022-55 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE FY 2021-22 CAPITAL IMPROVEMENT PROGRAM (CIP) Budget by closing completed projects, releasing AND UN-appropriating unexpended funds in the Total amount of $512,058 EXECUTIVE SUMMARY:
Council approval of the proposed Resolution (Attachment No. 1) will close four CIP projects and enable the release of unexpended funds that may be used to fund other projects. The proposed action will result in the closing of four completed CIP projects and a partial un-appropriation of funds from one on-going project.
FISCAL IMPACT:
The closing of the four CIP projects will release $262,058 in funds as indicated in the Table 1. The availability of these funds is a result of projects being completed at a cost lower than originally estimated and/or with less use of contingency than reasonably anticipated. Additionally, $250,000 is needed to be released from the “Annual Water Main Replacements,” Project No. 595-8125-XXXXX-95022 CIP project to fund projects as part of the City’s annual budgeting process. This project will be re-scoped and remain as fully funded for next fiscal year (FY 2022-23). The fiscal impact details are presented in Table 2.
PREVIOUS RELATED ACTION:
On June 7, 2021, City Council adopted Resolution No. 2021-71 to approve the FY 2021-22 CIP Budget which included all CIP projects listed in the two tables on the following page.
DISCUSSION:
The following Table 1 itemizes the projects to be closed, the funding sources, and the unexpended amounts to be released from these completed projects:
Table 1
Project Name
Project No.
Source of
Unexpended Funds
Unexpended Funds
Groundwater Well - Evaluation and Rehabilitation
95068
Series "BE/BF (AY)" Bond Proceeds
$203,024
Six Basins - Groundwater Optimization
95073
Water Fund
$821
Treatment – Chino Basin Groundwater VOC Plant
83020
Water Fund
$20,170
Water Master Plan (2016)
95074
Series "BE/BF (AY)" Bond Proceeds
$38,043
TOTAL
$262,058
The availability of these funds is a result of the projects being completed at a cost lower than originally projected. Itemization of the projects including Funded Budget, Unexpended Funds, Funding Sources, Project Type, Project Status, and Funding Status can be found in Exhibit A (Water CIP Projects Completed/Closed/Un-Fund) to Attachment 1.
The “Annual Water Main Replacements,” Project No. 595-8125-XXXXX-95022 is under review and will be re-scoped as part of the proposed FY 2022-23 budgeting process, allowing for funding to be reduced by $250,000 of Water Funds. This project will remain fully funded. Table 2 below provides fiscal details of this action.
Table 2
Category
Annual Water Main Replacements Project No. 595-8125-XXXXX-95022 Initial Budget
$1,648,805
Un-appropriation of the Water Fund Balance
$250,000
Revised Budget
$1,398,805
Expenditures/Encumbrances (as of March 1, 2022) ($204,995)
Balance remaining for project design, construction, miscellaneous costs, internal costs, and other project costs $1,193,810
The combined release of funds from closed projects and un-appropriation of Water Funds totals to $512,058, as detailed in Exhibit A to Attachment 1.
Prepared by:
_____________________________
Damian Martinez
Senior Management Analyst
ATTACHMENT: Attachment No. 1 – Proposed Resolution No. 2022-55 with Exhibit “A” Amendment of the FY 2021-22 Capital Improvement Program (CIP) Budget (Water Projects)