Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2021-01475 January 25, 2022 Consent Item 10
Title: Fiscal Year (FY) 2021/22 Adjustments to the Department of Utilities Capital Improvement Plan (CIP), and Multi Year Operating Project (MYOP) Budgets and Establish Reimbursable Budget for the Combined Sewer System (CSS) (X14010000) Sink Hole Emergency Repair.
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or City Manager’s designee to: 1) make allocation adjustments to the Fiscal Year 2021/22 Capital Improvement Project (CIP) and Multi-Year Operating Project (MYOP) Budgets in the Water (Fund 6005), Wastewater (Fund 6006), and Storm Drainage (Fund 6011); 2) establish reimbursable revenue and expenditure budgets in the CSS (X14010000, Fund 6206) Program in the amount of $750,001 for the emergency repair of a 42-inch damaged sewer pipe; 3) change the program name for CIP Z14190100 from Water Supply Expansion Program to Water+ Program; and 4) reset the City Manager’s administrative authority.
Contact: Bill Busath, Director (916) 808-1434, [email protected] ; Chuong (Ryan)
Pham, Business Services Manager, (916) 808-8995, [email protected]; Jackie Rice, Supervising Financial Analyst, (916) 808-1462, [email protected]; Penny Buchman, Program Specialist, (916) 808-1481, [email protected], Department of Utilities
Presenter: None.
Attachments:
1-Description Analysis
2-Attachment 1
3-Resolution
4-Exhibit A – Allocation Adjustments
5-Exhibit B – SCRSD Wastewater Operating Agreement (No. 52255)
File ID: 2021-01475 Consent Item 10
January 25, 2022
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City of Sacramento
Description/Analysis
Issue Detail: As part of the Department of Utilities (DOU) ongoing management of its Capital Improvement Project (CIP) and Multi-Year Operating Project (MYOP) budgets, a periodic review is conducted, and financial resources are reallocated to provide improvements in a timely and efficient manner. This process results in recommended budget adjustments to ensure progress continues for priority projects, including the establishment of new projects.
There is an ongoing emergency repair to a 42-inch damaged sewer pipe at the Combined Wastewater Treatment Plant (CWTP) which is causing a major sinkhole. Per the operating agreement with Sacramento County Regional Sanitation District (SCRSD) and the City of Sacramento, all work for this repair will be paid for initially by DOU and reimbursed by SCRSD.
Staff is recommending changing the program name for CIP Z14190100 from Water Supply Expansion Program to Water+ Program and is also recommending resetting the City Council approved administrative authority to projects that have met or are close to meeting the $250,000 threshold.
Policy Considerations: The recommendation to adjust the CIP and MYOP budgets that DOU manages is consistent with the DOU 2020-2025 Strategic Plan goals and objectives to effectively manage infrastructure assets and deliver reliable services. Adjustments to projects more than $250,000 and establishment of CIPs or MYOPs must be approved by City Council.
Economic Impacts: Not applicable.
Environmental Considerations: The Community Development Department, Environmental Services Manager has determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b). The fiscal management of the DOU’s CIP is an ongoing administrative fiscal activity and is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Reallocation of resources ensures that projects move forward in a timely manner and that financial resources are allocated based on the priority and necessity of the projects for the applicable fiscal year. The recommended budgetary adjustments include 16 CIPs, and six MYOPs in the Water (Fund 6005), Wastewater (Fund 6006), and Storm Drainage (Fund 6011) funds.
File ID: 2021-01475 Consent Item 10
January 25, 2022
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City of Sacramento
There is an emergency repair needed at the CWTP. There is an existing Wastewater Operating Agreement with SCRSD and the City of Sacramento that supports the costs associated with the emergency repair and the recommended revenue and expense budgets for the CSS Program (X14010000).
Staff is recommending changing the program name for CIP Z14190100 from Water Supply Expansion Program to Water+ Program to be consistent with communications within DOU and to the City Council and public.
In addition, staff is requesting approval to reset the city council administrative authority for the following CIP projects:
Project Number Project Name
W14140200 Hudson Way Drainage Improvements
X14010000 Combined Sewer System Capital
X14120300 Sewer Repairs Program
X14131500 Facility Electrical Rehabilitation Program
X14170100 Combined Collection System R&R
Z14005400 Shasta Park 4MG Reservoir and Pump
Station
Z14140700 Water Meter Program Trailers
Financial Considerations: The reallocation of existing resources to priority projects in the aforementioned funds will have a net zero effect within the funds as illustrated in Attachment 1.
Staff also recommends establishing reimbursable revenue and expenditure budgets for the CSS Program (X14010000, Fund 6206) for the emergency repair in the amount of $750,001.
SCRSD is responsible for the costs associated with the repair per the Wastewater Operating Agreement between the City of Sacramento and SCRSD known as SRCSD Contract No. 52255.
Local Business Enterprise (LBE): Not Applicable.
Project / Dept ID Project Description 6005
Water
6006
Wastewater
6011
Drainage
Grand
Total
I14010100 FLOOD CONTROL PLANNING 500,000 500,000
I14010200 NPDES STORMWATER PRGM (165,000) (165,000)
I14010800 Condition Assessment Program (200,000) (200,000) I14040200 Energy Efficiency Program (200,000) (200,000) I14050100 PLC Replacement Program (275,485) (93,774) (2,221) (371,480) I14710100 Drainage Master Plan Program (100,000) (100,000) W14000200 BASE CIP CONTINGENCY‐DRAINAGE 715,000 715,000 W14110700 Sump 38 Switchgear Replacement (150,000) (150,000) W14130600 DRAINAGE SUMP REPL/REHAB PROG (400,000) (400,000) W14170100 Drainage Collection System R&R (500,000) (500,000) X14000500 BASE CIP CONTINGENCY ‐ WASTEWATER (400,000) (400,000) X14002302 Sump 137 Reconstruction 100,000 100,000
X14010000 COMBINED SEWER SYS CAPITAL (1,250,000) (1,250,000) X14160500 SEPARATED PIPE REHAB/ REPL PRO 500,000 500,000 X14170100 Combined Collection System R&R 1,050,000 1,050,000 Z14002300 SRWTP PROPERTY ACQUISITION3350 (339,659) (339,659) Z14003600 Information Technology‐SCADA 275,485 93,77 4 502,221 871,48 0 Z14120300 SRWTP Intake Sed Rmvl (68,414) (68,414)
Z14130200 FWTP REHAB 1,777,690 1,777,690
Z14140600 DOU Facilities Impr/Rehab (1,912,690) (1,912,690) Z14190100 WATER SUPPLY EXPANSION PROGRAM 339,659 339,659 Z14210100 SRWTP Improvements Program 203,414 203,414
Grand Total ‐ ‐ ‐ ‐ Attachment 1
FY 2021/22 Allocation Adjustments
Fund Number
RESOLUTION NO. 2022 –
Adopted by the Sacramento City Council
January 25, 2022
APPROVING BUDGET ADJUSTMENTS TO THE
FY 2021/22 CAPITAL IMPROVEMENT PROGRAM & MULTI-YEAR OPERATING PROJECT BUDGETS; ESTABLISH REVENUE/EXPENDITURE BUDGETS FOR THE COMBINED SEWER SYSTEM (CSS) X14010000 SINK HOLE EMERGENCY REPAIR; NAME CHANGE FOR Z14190100 WATER SUPPLY EXPANSION PROGRAM TO WATER+ PROGRAM; AND RESET THE CITY MANAGER’S
ADMINISTRATIVE AUTHORITY
BACKGROUND
A. As part of the Department of Utilities’ ongoing management of its Capital Improvement Program (CIP) and Multi -year Operating Projects (MYOPs), a periodic review is conducted, and financial resources are reallocated to provide improvements in a timely and efficient manner.
B. As part of the FY 2021/22 periodic review, reallocation of the available financial resources is required for 16 CIPs and six MYOPs.
C. There is an emergency repair needed for the Combined Sewer Treatment Plant (CWTP) due to a damaged 42-inch pipe that is causing a sink hole at the plant.
The costs associated with the emergency repair will be supported through the Wastewater Operating Agreement with Sacramento County Regional Sanitation District (SCRSD) and the City of Sacramento (Exhibit B).
D. Staff is recommending establishing reimbursable revenue and expenditure Budgets in the CSS Program (X14010000, fund 6206) in the amount of $750,001 to support the Emergency Repair required for the CSS Program (X1401000).
E. Staff is recommending The Water Supply Expansion Program (Z14190100) name be changed to Water+ Program to be consistent with communication within DOU and to the City Council and public.
F. Staff is also recommending resetting the City Council approved administrative authority to projects that have met or are close to meeting the $250,000 threshold.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or City Manager’s designee is authorized to adjust appropriations in the Water (Fund 6005), Wastewater (Fund 6006), and Storm Drainage (Fund 6011) as shown in Exhibit A.
Section 2. The City Manager or City Manager’s designee is authorized to establish revenue and expenditure budgets in the CSS Program (X14010000, Fund 6206) in the amount of $750,001.
Section 3. The City Manager or City Manager’s designee is authorized to change the name of the CIP program Z14190100 Water Supply Expansion Program to Water+ Program.
Section 4. The City Manager or City Manager’s designee is authorized to reset the administrative authority for the following CIP projects:
Project Number Project Name
W14140200 Hudson Way Drainage Improvements
X14010000 Combined Sewer System Capital
X14120300 Sewer Repairs Program
X14131500 Facility Electrical Rehabilitation Program
X14170100 Combined Collection System R&R
Z14005400 Shasta Park 4MG Reservoir and Pump Station
Z14140700 Water Meter Program Trailers
Table of Contents
Exhibit A: Allocation Adjustments
Exhibit B: SCRSD Wastewater Operating Agreement (No. 52255)
Project / Dept ID Project Description 6005
Water
6006
Wastewater
6011
Drainage
Grand
Total
I14010100 FLOOD CONTROL PLANNING 500,000 500,000
I14010200 NPDES STORMWATER PRGM (165,000) (165,000)
I14010800 Condition Assessment Program (200,000) (200,000) I14040200 Energy Efficiency Program (200,000) (200,000) I14050100 PLC Replacement Program (275,485) (93,774) (2,221) (371,480) I14710100 Drainage Master Plan Program (100,000) (100,000) W14000200 BASE CIP CONTINGENCY‐DRAINAGE 715,000 715,000 W14110700 Sump 38 Switchgear Replacement (150,000) (150,000) W14130600 DRAINAGE SUMP REPL/REHAB PROG (400,000) (400,000) W14170100 Drainage Collection System R&R (500,000) (500,000) X14000500 BASE CIP CONTINGENCY ‐ WASTEWATER (400,000) (400,000) X14002302 Sump 137 Reconstruction 100,000 100,000
X14010000 COMBINED SEWER SYS CAPITAL (1,250,000) (1,250,000) X14160500 SEPARATED PIPE REHAB/ REPL PRO 500,000 500,000 X14170100 Combined Collection System R&R 1,050,000 1,050,000 Z14002300 SRWTP PROPERTY ACQUISITION3350 (339,659) (339,659) Z14003600 Information Technology ‐SCADA 275,485 93,774 502,221 871,480 Z14120300 SRWTP Intake Sed Rmvl (68,414) (68,414)
Z14130200 FWTP REHAB 1,777,690 1,777,690
Z14140600 DOU Facilities Impr/Rehab (1,912,690) (1,912,690) Z14190100 WATER SUPPLY EXPANSION PROGRAM 339,659 339,659 Z14210100 SRWTP Improvements Program 203,414 203,414
Grand Total ‐ ‐ ‐ ‐ Exhibit A
FY 2021/22 Allocation Adjustments
Fund Number