City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02160 1/10/2023 Consent Item 9.
Fiscal Year (FY) 2022/23 Adjustments to the Department of Utilities Capital Improvement Program (CIP), Multi Year Operating Project (MYOP), Operating Budgets and Reset of the City Manager’s Administrative Authority for MYOP and CIP Programs File ID: 2022-02160
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or City Manager’s designee to:
1) make allocation adjustments to the Fiscal Year 2022/23 Capital Improvement Project (CIP), Multi- Year Operating Project (MYOP), and Operating budgets in the Water (Fund 6005), Wastewater (Fund 6006), Storm Drainage (Fund 6011), and 2019 Wastewater Bond (Fund 6321) funds; 2) increase reimbursable revenue and expenditure budgets in the Combined Sewer System (CSS) Capital Program (X14010000, Fund 6206) in the amount of $350,000; 3) decrease revenue and expenditure budgets in the Drinking Water State Revolving Fund Loan (Fund 6321) for an amount not to exceed $35 million; and 4) reset the City Manager’s administrative authority.
Contact: Pravani Vandeyar, Interim Director (916) 808-3765, [email protected]; Chuong (Ryan) Pham, Business Services Manager (916) 808-8995, [email protected]; Penny Buchman, Supervising Financial Analyst (916) 808-1481, [email protected]; Gabriel Medina, Interim Program Specialist (916) 808-1374, [email protected], Department of Utilities
Presenter: None.
Attachments:
1-Description Analysis
2-Attachment 1
3-Resolution
4-Exhibit A - Allocation Adjustments
Additional Description/Analysis
Issue Detail: As part of the Department of Utilities (DOU) ongoing management of its CIP and MYOPs, a periodic review is conducted, and financial resources are reallocated to provide
File ID: 2022-02160 1/10/2023 Consent Item 9.
improvements in a timely and efficient manner. This process results in recommended budgetary adjustments to ensure progress continues for priority projects.
Due to unforeseen economic factors resulting in rising costs, the fleet, chemical, plumbing supplies, and various projects are exceeding current budgets and will require budget augmentations before FY 2023/24 budget development (Attachment 1).
Operations and Maintenance costs of approximately $350,000 were not included in the original budget request for the CSS Capital Program (X14010000, Fund 6206) for the emergency Combined Wastewater Treatment Plant (CWTP) sewer repair. The costs incurred for this project will be reimbursed by the Sacramento County Regional Sanitation District (SCRSD) as the owners of the asset.
In addition, DOU does not anticipate expending the full amount in the Drinking Water State Revolving Fund (DWSRF) loan (D17-02056) of $173,141,875. DOU estimates to expend $138,997,245, leaving an estimated balance of $34,144,630. City Council approval is required to decrease the budget in the SRF fund (6312). The remaining budget consists of $22 million in contingency that was not needed to complete the program and $12 million was intended for the Water Transmission Main project. The project was expected to be an approved project under the SRF loan. However, the DWSRF rejected the project for SRF funding after the agreement was executed for the full loan amount of $173 million.
Staff is also recommending resetting the City Council-approved administrative authority to projects that have met the $250,000 threshold or any portion thereof.
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 operating and project budgets of 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 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.
File ID: 2022-02160 1/10/2023 Consent Item 9.
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 or operating needs for the applicable fiscal year. The recommended budgetary adjustments include three Operating Budgets, 20 CIPs, and 13 MYOPs in the Water (6005), Wastewater (6006), Storm Drainage (6011), and 2019 Wastewater Revenue Bonds (6321) funds.
In addition, staff is requesting approval to reset the City Council’s delegated administrative authority for the following CIP projects:
Project Number Project Name
W14120800 Drain Inlet Replacement
W14130100 Drainage Unplanned Repair Program
W14140200 Hudson Way Drainage Improvements
Z14110100 Well Rehabilitation Program
Z14140600 DOU Facilities Improvements/Rehabilitation
Financial Considerations: The reallocation of resources to priority projects in the aforementioned funds will have a net-zero effect within the funds as illustrated in Attachment 1.
Staff is recommending an adjustment to the reimbursable revenue and expenditure budgets for the Emergency CWTP Sewer Repair in the amount of $350,000 that is fully reimbursable by SCRSD per the wastewater operating agreement between the City of Sacramento and SCRSD known as SRCSD Contract No. 52255.
In addition, staff is recommending City Council approval to adjust the DWSRF fund (6312) revenue and expenditure budgets based on the final loan amount for an amount not to exceed $35 million dollars.
There are no General Funds planned or allocated for this effort Local Business Enterprise (LBE): Not Applicable.
Project / Dept ID Project Description 6005
Water
6006
Wastewater
6011
Drainage
6321
2019
Wastewater
Bonds
Grand
Total
60001015‐890020 Contingency Reserve (1,188,000) (382,000) (498,000) (2,068,000) 14001111‐433060 Water Production Operations 230,000 230,000 14001111‐461080 Water Production Operations 500,000 500,000 14001411‐461110 Water Distribution 300,000 300,000
I06141022 FY22 Drainage Fleet MYOP 354,000 354,000
I06141023 FY23 Drainage Fleet MYOP 144,000 144,000
I06145022 FY22 Water Fleet MYOP 223,000 223,000
I06145023 FY23 Water Fleet MYOP 165,000 165,000
I06146022 FY22 Wastewater Fleet MYOP 147,000 147,000
I06146023 FY23 Wastewater Fleet MYOP 235,000 235,000
I14010100 FLOOD CONTROL PLANNING (141,105) (141,105)
I14110100 Sewer System Mgmt Plan (41,000) (41,000)
I14610100 Flow Monitoring/Hydrology Program (253,990) (253,990) I14610200 Wastewater Planning Program (500,000) (500,000) I14610300 Combined Master Plan Program 350,000 350,000 I14630200 CSS Management Plan 41,000 41,000
I14710100 Drainage Master Plan Program 141,105 141,105 X14002300 Pocket AD 2 Sewer Improvement (49,967) (33,503) (49,967) X14010000 Combined Sewer System Capital Program (554,466) (152,575) (554,466) X14120300 Sewer Repairs Program (375,000) (375,000)
X14130400 Wastewater Flow Meter Program 483,575 483,575 X14130900 Wastewater Sump Rehabilitation Program (451,052) (451,052) X14131500 Facility Electrical Rehabilitation Program 252,713 252,713 X14160500 Separated Pipe Rehabilitation Program 514,195 186,078 514,195 X14170100 Combined Collection System R&R 833,992 833,992 X14170500 CSS Sump and Treatment Facilities (250,000) (250,000) Z14000700 Water CIP Contingency (840,000) (840,000)
Z14006800 Unplanned Corrective Maintenance (500,000) (500,000) Z14010000 Residential Water Metering Program (4,883,893) (4,883,893) Z14130100 Florin Reservoir Backup Engine 600,000 600,000 Z14130200 Fairbairn Water Treatment Plant (WTP) Rehabilitation (750,000) (750,000) Z14130300 Transmission Main Rehabilitation Program 4,883,893 4,883,893 Z14130400 Distribution Main Rehabilitation Program (1,000,000) (1,000,000) Z14130500 Reservoir Rehabilitation Program 1,872,000 1,872,000 Z14140100 Security and Emergency Preparedness Program (332,000) (332,000) Z14190100 Water + Program 1,300,000 1,300,000
Z14210100 Sacramento River WTP Improvements Program (580,000) (580,000) Grand Total 0000 0
Attachment 1
FY 2022/23 Allocation Adjustments
RESOLUTION NO. 2023 –
Adopted by the Sacramento City Council
January 10, 2023
FISCAL YEAR (FY) 2022/23 ADJUSTMENTS TO THE DEPARTMENT OF UTILITIES
CAPITAL IMPROVEMENT PROGRAM (CIP), MULTI YEAR OPERATING PROGRAM (MYOP), AND OPERATING BUDGETS AND RESET OF THE CITY MANAGER’S ADMINISTRATIVE AUTHORITY FOR MYOP AND CIP PROJECTS.
BACKGROUND
A. As part of the Department of Utilities’ (DOU) ongoing management of its Capital Improvement Program (CIP) and Multi -year Operati ng Projects (MYOPs), 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 ary adjustments to ensure progress continues for priority projects.
B. As part of the FY 2022/23 periodic review, unforeseen economic factors resulting in rising costs for fleet, chemical, plumbing supplies, and various projects are exceeding current budgets and will require budget augmentations before FY 2023/24 budget development. Reallocation of the available financial resources is required for three Operating Budgets, 20 CIPs, and 13 MYOPs.
C. Staff recommends increasing the revenue and expenditure budgets in the Combined Sewer System Capital Program (X14010000, Fund 6206) in the amount of $350,000. Operations and Maintenance costs of approximately $3 50,000 were not included in the original budget request for the emergency Combined Wastewater Treatment Plant (CWTP) sewer repair . The costs incurred for this project will be reimbursed by the Sacramento Co unty Regional Sanitation District (SCRSD) as the owners of the asset.
D. DOU does not anticipate expending the full amount in the Drinking Water State Revolving Fund (DWSRF) loan (D17 -02056) of $173,141,875. DOU estimates to expend $138,997,245, leaving an estimated balance of $34,144,630. City Council approval is required to decrease the budget in the SRF fund (6312). The remaining budget consist of $22 million in contingency that was not needed to complete the program and $12 million was for the Water Transmission Main project. The project was expected to be an approved project under the SRF loan . However, the state rejected the project for SRF funding after the agreement was executed for the full loan amount of $173 million.
E. Staff is also recommending resetting the City Council approved administrative authority to projects that have met the $250,000 threshold or any portion thereof.
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), Storm Drainage (Fund 6011), and 2019 Wastewater Revenue Bond (Fund 6321) funds as shown in Exhibit A.
Section 2. The City Manager or City Manager’s designee is authorized to increase the revenue and expenditure budgets in the Combined Sewer System Capital Program (X14010000, Fund 6206) in the amount of $350,000. The costs incurred for this project will be reimbursed by the Sacramento County Regional Sanitation District (SCRSD) as the owners of the asset.
Section 3. The City Manager or City Manager’s designee is authorized to adjust the revenue budget in the Drinking Water SRF loan fund (6312) and expenditure budget in the Residential Water Metering Program (Z14010000, Fund 6312) based on the final loan amount for an amount not to exceed $35 million dollars.
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
W14120800 Drain Inlet Replacement
W14130100 Drainage Unplanned Repair Program
W14140200 Hudson Way Drainage Improvements
Z14110100 Well Rehabilitation Program
Z14140600 DOU Facilities Improvements/Rehabilitation
Table of Contents
Exhibit A: Allocation Adjustments
Project / Dept ID Project Description 6005
Water
6006
Wastewater
6011
Drainage
6321
2019
Wastewater
Bonds
Grand
Total
60001015‐890020 Contingency Reserve (1,188,000) (382,000) (498,000) (2,068,000) 14001111‐433060 Water Production Operations 230,000 230,000 14001111‐461080 Water Production Operations 500,000 500,000 14001411‐461110 Water Distribution 300,000 300,000
I06141022 FY22 Drainage Fleet MYOP 354,000 354,000
I06141023 FY23 Drainage Fleet MYOP 144,000 144,000
I06145022 FY22 Water Fleet MYOP 223,000 223,000
I06145023 FY23 Water Fleet MYOP 165,000 165,000
I06146022 FY22 Wastewater Fleet MYOP 147,000 147,000
I06146023 FY23 Wastewater Fleet MYOP 235,000 235,000
I14010100 FLOOD CONTROL PLANNING (141,105) (141,105)
I14110100 Sewer System Mgmt Plan (41,000) (41,000)
I14610100 Flow Monitoring/Hydrology Program (253,990) (253,990) I14610200 Wastewater Planning Program (500,000) (500,000) I14610300 Combined Master Plan Program 350,000 350,000 I14630200 CSS Management Plan 41,000 41,000
I14710100 Drainage Master Plan Program 141,105 141,105 X14002300 Pocket AD 2 Sewer Improvement (49,967) (33,503) (49,967) X14010000 Combined Sewer System Capital Program (554,466) (152,575) (554,466) X14120300 Sewer Repairs Program (375,000) (375,000)
X14130400 Wastewater Flow Meter Program 483,575 483,575 X14130900 Wastewater Sump Rehabilitation Program (451,052) (451,052) X14131500 Facility Electrical Rehabilitation Program 252,713 252,713 X14160500 Separated Pipe Rehabilitation Program 514,195 186,078 514,195 X14170100 Combined Collection System R&R 833,992 833,992 X14170500 CSS Sump and Treatment Facilities (250,000) (250,000) Z14000700 Water CIP Contingency (840,000) (840,000)
Z14006800 Unplanned Corrective Maintenance (500,000) (500,000) Z14010000 Residential Water Metering Program (4,883,893) (4,883,893) Z14130100 Florin Reservoir Backup Engine 600,000 600,000 Z14130200 Fairbairn Water Treatment Plant (WTP) Rehabilitation (750,000) (750,000) Z14130300 Transmission Main Rehabilitation Program 4,883,893 4,883,893 Z14130400 Distribution Main Rehabilitation Program (1,000,000) (1,000,000) Z14130500 Reservoir Rehabilitation Program 1,872,000 1,872,000 Z14140100 Security and Emergency Preparedness Program (332,000) (332,000) Z14190100 Water + Program 1,300,000 1,300,000
Z14210100 Sacramento River WTP Improvements Program (580,000) (580,000) Grand Total 0000 0
Exhibit A
FY 2022/23 Allocation Adjustments