City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00372 2/11/2025 Consent Item 1.
Fiscal Year (FY) 2024/25 Adjustments to the Department of Utilities Capital Improvement Program (CIP), Multi Year Operating Project (MYOP), Operating Grant Program, Operating Budgets and Reset of the City Manager’s Administrative Authority for MYOP and CIP Programs
File ID: 2025-00372
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or City Manager’s designee to:
1) make allocation adjustments to the Fiscal Year 2024/25 Capital Improvement Project (CIP), Multi- Year Operating Project (MYOP), and Operating budgets in the Water Development Impact Fee (Fund 6001), Sewer Development Impact Fee (Fund 6002), Water (Fund 6005), Wastewater (Fund 6006), Storm Drainage (Fund 6011), and Storm Drainage Property Fee (Fund 6021); 2) approve the purchase of one Ford Transit Van from the Fleet FY25-DOU Water Fund MYOP (I06145025, Fund 6005) in an amount not to exceed $75,000; 3) remove reimbursable revenue and expenditure budgets in the Water Master Plan Program (I14510200, Fund 6205) in the amount of $1,000,000, Drainage Improvement Program (W14150700, Fund 6211) in the amount of $621,161, and the Drainage Sump Rehabilitation and Replacement Program (W14130600, Fund 6211) in the amount of $436,000; and 4) reset the City Manager’s administrative authority for the identified projects.
Contact: Pravani Vandeyar, 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]; 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, MYOPs,
File ID: 2025-00372 2/11/2025 Consent Item 1.
Operating Grants, and Operating Budgets, a periodic review is conducted, and financial resources are reallocated to provide project delivery in a timely and efficient manner. This process results in recommended budgetary adjustments to ensure progress continues for priority projects (Attachment 1).
In FY2022/23, the Cross Connection Program started to transition enforcement responsibility for 7,000 privately owned backflow devices from Sacramento County to the City. DOU is recommending the purchase of one Ford Transit Van to support the expanded Cross Connection Control Program operations.
In addition, DOU staff is requesting authorization to remove reimbursable revenue and expenditure budgets in three projects. The Placer County Water Association RiverArc Agreement was originally created as a reimbursable project in the Water Master Plan Program (I14510200, Fund 6205) in the amount of $1,000,000 via Resolution 2024-0151. The Department of Finance recommends recording the reimbursement as a liability in the Water Fund (6005) and remove the reimbursable budget from the project Water Reimbursable Fund (6205). This is a correction to the project with a net-zero impact on financial resources.
City Council authority is required to remove reimbursable revenue and expense budget when a grant is canceled or reduced. On January 10, 2023, Resolution 2023-0003 approved the Floodplain Management Protection Grant that established reimbursement budgets in the Drainage Improvement Program (W14150700, Fund 6211) in the amount of $621,161. Staff is requesting to remove the budgets due to the cancellation of the grant. In addition, the grant match remaining budget of $281,794 will be returned to the Storm Drainage Fund Balance (Fund 6011) as shown on Attachment
1. The Green Means Go Grant approved by Resolution 2023-0176 has received a six-percent reduction as part of the State’s annual budget process. Staff is recommending that the reimbursable budgets in the Drainage Sump Rehabilitation and Replacement Program (W14130600, Fund 6211) be reduced in the amount of $436,000.
Staff is also recommending resetting the City Council approved administrative authority to specified 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.
File ID: 2025-00372 2/11/2025 Consent Item 1.
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 nine Operating Budgets, twenty-four CIPs, and ten MYOPs in the Water Development Impact Fee (6001), Sewer Development Impact Fee (6002), Water (6005), Wastewater (6006), Storm Drainage (6011), Storm Drainage Property Fee (6021), Water Reimbursable Fund (6205), and the Storm Drainage Reimbursable Fund (6211).
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. Per section 3.2 of the DOU Reserve Policy, staff is recommending the use of $1,600,000 from the Wastewater Capital Reserve to fund critical projects in the Sewer Unplanned Repairs Program and the Combined Sewer System Sump and Treatment Facilities Program included in Attachment 1. The FY2024/25 Wastewater Capital Reserve balance will be $1,730,000 and will be replenished as soon as possible using realized annual budget savings per the reserve policy.
All other recommended budgetary actions presented in this report are corrective actions for reimbursable projects shown in the below table.
Project # Project Name Fund Amount
I14510200 Water Master Plan Program 6205 ($1,000,000)
W14150700 Drainage Improvement Program 6211 ($621,161)
W14130600 Drainage Sump Rehabilitation and
Replacement Program
6211 ($436,000)
*Includes revenue and expenditures budgets.
File ID: 2025-00372 2/11/2025 Consent Item 1.
There are no General Funds planned or allocated for this effort.
Local Business Enterprise (LBE): Not applicable.
Project / Dept ID Project Description 6001
Water
Development
Impact Fee
6002
Sewer
Development
Impact Fee
6005
Water
6006
Wastewater
6011
Drainage
6021
Storm Drainage
Property Fee
Grand
Total
60001015-890020Contingency Reserves (244,000)(1,414,300)(2,713,026)(813,206) (5,184,532) 14001111 Water Production 867,000 867,000
14001121 Wastewater Operations 334,000 334,000
14001131 Drainage Operations 655,000 655,000
14001141 Water Maintenance 75,000 75,000
14001151 Wastewater Maintenance 25,000 25,000
14001411 Water Distribution 45,000 45,000
14001421 Wastewater Collection 214,606 214,606
14001431 Drainage Collection 440,000 440,000
14001471 Cross Connection 52,300 52,300
I06145025 Fleet FY25-DOU Water Fund 75,000 75,000
I06146025 Fleet FY25-DOU Wastewater Fund 117,000 117,000 I14010200 NPDES Stormwater Program (200,000) (200,000)
I14010500 Water Meter Replacement Program (623,414) (623,414) I14040100 Information Technology Program (235,100) (24,600) (259,700) I14050200 Electrical Equipment Program (130,429) (130,429) I14110100 Sewer System Mgmt Plan 211,210 211,210
I14610200 Wastewater Planning Program (33,833) (33,833) I14610300 Combined Master Plan Program 33,833 33,833
W14000200 Base CIP Contingency-Drainage (500,000) (500,000) W14150700 Drainage Improvement Program (281,794) (281,794) W14230100 Drainage Trash Capture Program 200,000 200,000 W14230200 Facility Electrical Rehab Prog 500,000 500,000 X14120300 Sewer Unplanned Repairs Program 1,550,000 1,550,000 X14130900 Wastewater Sump Rehabilitation/Replacement Program 150,000 50,000 200,000 X14131500 Facility Electric Rehabilitation Program 945,429 945,429 X14131600 Generator Improvement Program (288,790) (288,790) X14160500 Separated Sewer Pipe Program 244,000 244,000
X14170100 Combined Sewer System Pipe Program (200,000) (200,000) X14170500 CSS Sump/Treatment Facilities 100,000 (50,000) 50,000 Z14000700 Base CIP Contingency-Water (635,000) (635,000) Z14001900 Utility Energy Efficiency 3350 (315,000) (315,000) Z14005400 Shasta Park 4MG Reservoir and Pump Station (198,454) (888,524) (1,086,978) Z14006800 Unplanned Corrective Maintenance (95,000) (95,000) Z14010000 Residential Water Metering Program (475,000) (475,000) Z14130300 Transmission Main Rehabilitation Program (225,000) (225,000) Z14130400 Distribution Main Rehabilitation Program 225,000 225,000 Z14130500 Reservoir Rehabilitation Program 975,000 975,000 Z14140600 DOU Facilities Improvement/Rehabilitation 530,000 530,000 Z14170100 DOU IT Program 235,100 24,600 259,700
Z14230100 Water Meter Replacement Program 623,414 623,414 Z14240100 Shasta Park Facility Rehabilitation & Replacement 198,454 888,524 1,086,978 Grand Total - - - - - - - Attachment 1
FY 2024/25 Allocation Adjustments
RESOLUTION NO. 2025 –
Adopted by the Sacramento City Council
February 11, 2025
FISCAL YEAR (FY) 2024/25 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 project delivery in a timely and efficient manner. This process results in recommended budgetary adjustments to ensure progress continues for priority projects (Attachment 1).
Per section 3.2 of the DOU Reserve Policy, staff is recommending the use of $1,600,000 from the Wastewater Capital Reserve to fund critical projects in the Sewer Unplanned Repairs Program and the Combined Sewer System Sump and Treatment Facilities Program included in Attachment 1. The FY2024/25 Wastewater Capital Reserve balance will be $1,730,000 and will be replenished as soon as possible using realized annual budget savings per the reserve policy.
B. In FY2022/23, the Cross Connection Program started to transition 7,000 privately owned backflow devices from Sacramento County to the City. DOU is recommending the purchase of one F ord Transit Van to support the expanded Cross Connection Control Program operations.
C. Authorization is necessary to remove reimbursable revenue and expenditure in Water Master Plan Program (I14510200, Fund 6205) . The Placer County Water Association RiverArc Agreement was originally created as a reimbursable project in the in the amount of $1,000,000 via Resolution 2024 -0151. The Department of Finance recommends recording the reimbursement as a liability in the Water Fund (6005) and remove the reimbursable budget from the project Water Reimbursable Fund (6205). This is a correction to the project with a net-zero impact on financial resources.
D. DOU staff is requesting authorization to remove reimbursable revenue and expenditure in the Drainage Improvement Program (W14150700, Fund 6211). City Council authority is required to remove reimbursable revenue and expense budget when a grant is canceled or reduced. On January 10, 2023, Resolution 2023-0003 approved the Floodplain Management Prot ection Grant that established reimbursement budgets in the Drainage Improvement Program (W14150700, Fund 6211) in the amount of $621,161. Staff is requesting to remove the budgets due to the cancellation of the grant. In addition, the grant match remaining budget of $281,794 will be returned to the Storm Drainage Fund Balance (Fund 6011) as shown on Exhibit A.
E. DOU staff is requesting authorization to remove reimbursable revenue and expenditure in the Drainage Sump Rehabilitation and Replacement Program (W14130600, Fund 6211) . The Green Means Go Grant approved by Resolution 2023-0176 has received a six -percent reduction as part of the State’s annual budget process. Staff is recommending that the reimbursable budgets in the Drainage Sump Rehabilitation and R eplacement Program (W14130600, Fund 6211) be reduced in the amount of $436,000.
F. Staff is also recommending resetting the City Council approved administrative authority to specified 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 Development Impact Fee (6001), Sewer Development Impact Fee (6002), Water (6005), Wastewater (6006), Storm Drainage (6011), and Storm Drainage Property Fee (6021) funds as shown in Exhibit A.
Section 2. The City Manager or City Manager’s designee is authorized to purchase one Ford Transit Van from the Fleet FY25-DOU Water Fund MYOP (I06145025, Fund 6005) in an amount not to exceed $75,000.
Section 3. The City Manager or City Manager’s designee is authorized to remove reimbursable revenue and expenditure budgets in the Water Master Plan Program (I14510200, Fund 6205) in the amount of $1,000,000; Drainage Improvement Program (W14150700, Fund 6211) in the amount of $621,161; and Drainage Sump Rehabilitation and Replacement Program (W14130600, Fund 6211) in the amount of $436,000.
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
G14220100 FY22 DOU Operating Grant Program
I14040100 Information Technology Program
I14050200 Electrical Equipment Program
I14110100 Sewer System Management Plan
W14000200 Base CIP Contingency-Drainage
W14140200 Hudson Way Drainage Improvements
W14150700 Drainage Improvement Program
W14170100 Drainage Collection System Rehabilitation &
Replacement
X14000500 Base CIP Contingency-Wastewater
X14130400 Wastewater Flow Meter Program
X14131600 Generator Improvement Program
X14160500 Separated Sewer Pipe Program
X14170100 Combined Sewer System Pipe Program
Z14003600 Information Technology - SCADA
Z14170100 DOU Information Technology Program
Table of Contents
Exhibit A: Allocation Adjustments
Project / Dept ID Project Description 6001
Water
Development
Impact Fee
6002
Sewer
Development
Impact Fee
6005
Water
6006
Wastewater
6011
Drainage
60001015-890020Contingency Reserves (244,000) (1,414,300) (2,713,026)(813,206) 14001111 Water Production 867,000
14001121 Wastewater Operations 334,000
14001131 Drainage Operations 655,000
14001141 Water Maintenance 75,000
14001151 Wastewater Maintenance 25,000
14001411 Water Distribution 45,000
14001421 Wastewater Collection 214,606
14001431 Drainage Collection 440,000
14001471 Cross Connection 52,300
I06145025 Fleet FY25-DOU Water Fund 75,000
I06146025 Fleet FY25-DOU Wastewater Fund 117,000
I14010200 NPDES Stormwater Program
I14010500 Water Meter Replacement Program (623,414)
I14040100 Information Technology Program (235,100) (24,600) I14050200 Electrical Equipment Program (130,429)
I14110100 Sewer System Mgmt Plan 211,210
I14610200 Wastewater Planning Program (33,833)
I14610300 Combined Master Plan Program 33,833
W14000200 Base CIP Contingency-Drainage
W14150700 Drainage Improvement Program (281,794)
W14230100 Drainage Trash Capture Program
W14230200 Facility Electrical Rehab Prog
X14120300 Sewer Unplanned Repairs Program 1,550,000
X14130900 Wastewater Sump Rehabilitation/Replacement Program 150,000 50,000 X14131500 Facility Electric Rehabilitation Program 945,429 X14131600 Generator Improvement Program (288,790)
X14160500 Separated Sewer Pipe Program 244,000
X14170100 Combined Sewer System Pipe Program (200,000)
X14170500 CSS Sump/Treatment Facilities 100,000 (50,000) Z14000700 Base CIP Contingency-Water (635,000)
Z14001900 Utility Energy Efficiency 3350 (315,000)
Z14005400 Shasta Park 4MG Reservoir and Pump Station (198,454) (888,524) Z14006800 Unplanned Corrective Maintenance (95,000)
Z14010000 Residential Water Metering Program (475,000)
Z14130300 Transmission Main Rehabilitation Program (225,000) Z14130400 Distribution Main Rehabilitation Program 225,000 Z14130500 Reservoir Rehabilitation Program 975,000
Z14140600 DOU Facilities Improvement/Rehabilitation 530,000 Z14170100 DOU IT Program 235,100 24,600
Exhibit A
FY 2024/25 Allocation Adjustments