City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00362 2/6/2024 Consent Item 8.
Fiscal Year (FY) 2023/24 Adjustments to the Department of Utilities Capital Improvement Program (CIP), Multi Year Operating Program (MYOP), Operating Grant Program, Operating Budgets and Reset of the City Manager’s Administrative Authority for MYOP and CIP Programs
File ID: 2024-00362
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or City Manager’s designee to:
1) make allocation adjustments to the Fiscal Year 2023/24 Capital Improvement Program (CIP), Multi -Year Operating Program (MYOP), Operating Grant Program, and Operating budgets in the Water (Fund 6005), Wastewater (Fund 6006), Storm Drainage (Fund 6011), Storm Drainage Property Fee (Fund 6021), and Water Reimbursable (Fund 6205) funds; 2) amending the FY2023/24 MYOPs to create one new project for the DOU Arborist Program (I14240100); and 3) reset the City Manager’s budgetary administrative authority.
Contact: Pravani Vandeyar, Director (916) 808-3765; Chuong (Ryan) Pham, Business Services Manager, (916) 808-8995; Penny Buchman, Supervising Financial Analyst, (916) 808-1481, Department of Utilities
Presenter: None.
Attachments:
1-Description Analysis
2-Attachment 1
3-Resolution
4-Exhibit A - Allocation Adjustments
Description/Analysis
Issue Detail: As part of the Department of Utilities (DOU) ongoing management of its CIP, MYOP, Operating Grants, and Operating 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 budgetary adjustments to ensure progress continues for priority projects (Attachment 1).
File ID: 2024-00362 2/6/2024 Consent Item 8.
The creation of a new MYOP is being recommended for the DOU Arborist Program (I14240100). The program will provide funding to inventory and implement a maintenance plan of trees at DOU facilities.
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 the 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 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 or operating needs for the applicable fiscal year. The recommended budgetary adjustments include three Operating Budgets, 22 CIP projects, eight MYOP projects, and one Operating Grant project in the Water (6005), Wastewater (6006), Storm Drainage (6011), Storm Drainage Property Fee (6021), and Water Reimbursable (Fund 6205) funds.
In addition, staff is requesting approval to reset the city council administrative authority for projects that have met the $250,000 threshold.
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.
There are no General Funds planned or allocated for this effort.
File ID: 2024-00362 2/6/2024 Consent Item 8.
Local Business Enterprise (LBE): Not applicable.
Project / Dept ID Project Description 6005
Water
6006
Wastewater
6011
Drainage
6021
Storm Drainage
Property Fee
6205
Water
Reimbursable
Grand
Total
60001015-890020Contigency Reserves (244,533) (672,173) (545,293) (1,461,999) 14001111-890070Department Budget Reduction (34,706) (34,706) 14001471-461210Cross Connection Control 150,000 150,000 14001061-433060Chief of Staff 94,524 94,524
G14240100 FY24 DOU Operating Grant Program (1,083,000)(1,083,000) I06145000 Fleet-DOU Water Fund 276,000 276,000
I06146000 Fleet-DOU Sewer Fund 597,000 597,000
I14040100 Information Technology Program (31,000) (10,000) (41,000) I14040200 Energy Efficiency Program (300,000) (100,000) (83,650) (483,650) I14110100 Sewer System Mgmt Plan (300,000) (300,000)
I14120400 Water Conservation (94,524) (94,524)
I14240100 DOU Arborist Program 250,000 100,000 250,000 600,000 I14630200 CSS Management Plan (550,000) (550,000)
W14130100 Drainage Unplanned Repair Prog 50,000 50,000
W14130400 Drainage Channel Improvement Program 250,000 250,000 X14000500 Base CIP Contingency - WasteW (174,000) (174,000) X14002300 Pocket AD 2 Sewer Imnprvment (63,915) (63,915) X14010000 Combined Sewer Sys Capital (2,375,287) (2,000,000) (4,375,287) X14110400 Sewer Manhole Rehab (5,972) (5,972)
X14120300 Sewer Repairs Program 794,083 794,083
X14130400 Wastewater Flow Meter Program 325,000 325,000 X14131100 Sump 2/2A Rehab/Rep Program (10,000) (10,000) X14131200 CWTP Rehap/Rep Program (29,043) (51) (29,094) X14131500 Facility Electrical Rehab Program 2,788,898 2,788,898 X14170100 Combined Collection System R&R (700,000) 2,000,000 1,300,000 X14170500 CSS Sump/Treatment Facilities 300,236 51 300,287 Z14000700 Base CIP Contingency - Water (150,000) (150,000) Z14001900 Utility Energy Efficiency 3350 300,000 100,000 83,650 483,650 Z14006800 Unplanned Corrective Maintenance (440,000) (440,000) Z14010000 Residential Water Metering Program 40,000 40,000 Z14110100 Well Rehabilitation Program 150,000 150,000
Z14130500 Reservoir Rehabilitation Program 400,000 400,000 Z14130400 Distribution Main Rehabilitation Program 1,083,0001,083,000 Z14140600 DOU Facilities Impr/Rehab 34,706 34,706
Z14170100 DOU IT Program (400,467) (14,827) (4,707) (420,001) Grand Total 0 0 0 0 0 0
*Water reimbursable funds includes revenue and expense budgets Attachment 1
FY 2023/24 Allocation Adjustments
RESOLUTION NO. 2023 –
Adopted by the Sacramento City Council
January 30, 2024
FISCAL YEAR (FY) 2023/24 ADJUSTMENTS TO THE DEPARTMENT OF UTILITIES
CAPITAL IMPROVEMENT PROGRAM (CIP), MULTI YEAR OPERATING PROGRAM (MYOP), OPERATING GRANT PROGRAM, 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 CIP, MYOPs, Operating Grants , and Operating 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 ary adjustments to ensure progress continues on DOU priorities for three Operating Budgets, 22 CIP projects, eight MYOP projects, and one Operating Grant project in the Water (6005), Wastewater (6006), Storm Drainage (6011 ), Storm Drainage Property Fee (6021), and Water Reimbursable (Fund 6205) funds.
B. As part of the FY 2023/24 periodic review, reallocation of the available financial resources, the creation of one new MYOP is recommended.
C. Staff is also recommending resetting the City Council approved budgetary 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. One MYOP is established for ongoing water, wastewater, and drainage management as follows:
MYOP Name/Description
I14240100 DOU Arborist Program - The program will provide funding to inventory and implement a maintenance plan of trees at DOU facilities.
Section 2. 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), Storm Drainage Property Fee (Fund 6021), and Water Reimbursable (Fund 6205) funds as shown in Exhibit A.
Section 3. The City Manager or City Manager’s designee is authorized to reset the budgetary administrative authority for the following CIP projects:
Project Number Project Name
I14530100 Leak Detection Program
W14130800 Drain Plant Reg Improvement Program
W14140200 Hudson Way Drainage Improvements
W14150700 Drainage Improvement Program
X14130900 Wastewater Sump Rehab/Rep Program
Z14006700 WHLS Wheeling Connection Fee Improvements
Table of Contents
Exhibit A: Allocation Adjustments
Project / Dept ID Project Description 6005
Water
6006
Wastewater
6011
Drainage
6021
Storm Drainage
Property Fee
6205
Water
Reimbursable
Grand
Total
60001015-890020Contigency Reserves (244,533) (672,173) (545,293) (1,461,999) 14001111-890070Department Budget Reduction (34,706) (34,706) 14001471-461210Cross Connection Control 150,000 150,000 14001061-433060Chief of Staff 94,524 94,524
G14240100 FY24 DOU Operating Grant Program (1,083,000)(1,083,000) I06145000 Fleet-DOU Water Fund 276,000 276,000
I06146000 Fleet-DOU Sewer Fund 597,000 597,000
I14040100 Information Technology Program (31,000) (10,000) (41,000) I14040200 Energy Efficiency Program (300,000) (100,000) (83,650) (483,650) I14110100 Sewer System Mgmt Plan (300,000) (300,000)
I14120400 Water Conservation (94,524) (94,524)
I14240100 DOU Arborist Program 250,000 100,000 250,000 600,000 I14630200 CSS Management Plan (550,000) (550,000)
W14130100 Drainage Unplanned Repair Prog 50,000 50,000
W14130400 Drainage Channel Improvement Program 250,000 250,000 X14000500 Base CIP Contingency - WasteW (174,000) (174,000) X14002300 Pocket AD 2 Sewer Imnprvment (63,915) (63,915) X14010000 Combined Sewer Sys Capital (2,375,287) (2,000,000) (4,375,287) X14110400 Sewer Manhole Rehab (5,972) (5,972)
X14120300 Sewer Repairs Program 794,083 794,083
X14130400 Wastewater Flow Meter Program 325,000 325,000 X14131100 Sump 2/2A Rehab/Rep Program (10,000) (10,000) X14131200 CWTP Rehap/Rep Program (29,043) (51) (29,094) X14131500 Facility Electrical Rehab Program 2,788,898 2,788,898 X14170100 Combined Collection System R&R (700,000) 2,000,000 1,300,000 X14170500 CSS Sump/Treatment Facilities 300,236 51 300,287 Z14000700 Base CIP Contingency - Water (150,000) (150,000) Z14001900 Utility Energy Efficiency 3350 300,000 100,000 83,650 483,650 Z14006800 Unplanned Corrective Maintenance (440,000) (440,000) Z14010000 Residential Water Metering Program 40,000 40,000 Z14110100 Well Rehabilitation Program 150,000 150,000
Z14130500 Reservoir Rehabilitation Program 400,000 400,000 Z14130400 Distribution Main Rehabilitation Program 1,083,0001,083,000 Z14140600 DOU Facilities Impr/Rehab 34,706 34,706
Z14170100 DOU IT Program (400,467) (14,827) (4,707) (420,001) Grand Total 0 0 0 0 0 0
*Water reimbursable funds includes revenue and expense budgets Exhibit A
FY 2023/24 Allocation Adjustments