Commission’s collaborative work on this policy-development process is an example of how community engagement can build understanding and agreement on complex topics that are steeped in both technical and policy detail. We particularly appreciate the opportunity to work with the City of Santa Cruz (City) and its staff on such important topics critical to ensuring a safe, reliable water supply into the future.
• A second long-term Commission focus area is water-rate affordability.
Starting in 2017 the Commission began receiving presentations and discussing the important issue of water affordability. A 2020 report on the affordability of water and wastewater services in Santa Cruz provided the first assessment looking at affordability within census block groups. A second presentation in December 2021 provided a forward-looking perspective on how water and wastewater affordability would change as the planned FY 2023 – FY 2027 rate increases were implemented over time.
These analyses show that roughly 20% of the Department’s water service customers are paying more than 4.5% of their household disposable income on water and wastewater services. This metric has long been used as one means of assessing affordability of critical water and wastewater services. As is the case for other utilities making significant investments in their water infrastructure, rate increases necessary to fund these investments result in increasing affordability challenges for those customers least able to pay. As an example of one approach to addressing local affordability challenges, the Commission worked with Department staff to develop new customer assistance programs.
The new programs both implement new regulations related to customer shutoffs for non-payment of utility charges and use newly available water-use data from the Department’s recent investment in an advanced metering infrastructure (AMI).
In addition to supporting more accurate and efficient meter reading, AMI supports enhanced leak detection programs that provide near real-time notices to customers experiencing leaks and thereby help customers manage their bills by promptly addressing leaks. According to the Environmental Protection Agency’s WaterSense Program, fixing easily corrected household water leaks can save customers 10% on their water bills.
• A third topic that has been a continuing focus area for the Commission is long-term demand forecasting for water.
This topic has been one that is carefully followed by many in the community as Santa Cruz and the surrounding areas served by the Santa Cruz water system respond to the need and the requirement to increase housing, with a particular focus on affordable and workforce housing. In March 2023, the Commission received a presentation of an updated forecast for water demand that incorporated significant increases in the
29.1.17 Mayor Keeley, Vice Mayor Golder, and Councilmembers June 6, 2023
number of anticipated housing units to be served between now and 2045, with most units being multi-family units. By 2045, the anticipated additional water demand would increase by about 125 million gallons per year over the earlier forecast completed for use in the Department’s 2020 Urban Water Management Plan. The new forecast’s results are now being incorporated into the Department’s ongoing water supply planning work.
RECOMMENDATIONS
The Commission is basing its recommendation regarding the Department’s Operating Budget and CIP on its ongoing work focused on the Department’s financial management and performance. This work is conducted in publicly-noticed Commission meetings that have covered ongoing operations, planning and implementation of capital projects, and detailed discussions of the Department’s annual Operating Budget and CIP. Our reviews and discussions have included considerations of the Department’s financial performance against the projections that underlie the 2021 Long-Range Financial Plan (LRFP), which is the key policy document upon which the Department’s annual budget and capital planning are based. The 2021 LFRP was developed with the active engagement of the Commission, including being informed by the work of a Commission ad hoc subcommittee in mid-2019 to early 2020 that developed revenue requirements used in establishing the adopted FY 2024-FY 2027 Water Rates. The series of documents included as attachments to this letter were presented and discussed in detail during our review process and are summarized in the discussion presented below.
FY 2024 OPERATING BUDGET
The Water Department’s Recommended FY 2024 Operating Budget was developed to support the Department's mission to provide a reliable and high-quality potable water supply 24 hours per day, 7 days a week, and 365 days per year to a population of approximately 100,000 people.
The Commission’s recommendations to the Council on the Department’s FY 2024 Operating Budget are based on the Commission’s ongoing engagement with staff to identify, understand, and effectively address the water system’s challenges.
Attachment 1 is the Department’s Proposed FY 2024 Operating Budget. Operating Budget highlights include:
• Projected revenues for FY 2024, including water rate revenues and other revenues, of $50.8 million.
• A proposed Operating Budget for FY 2024 of $42.6 million. This is 4% higher than the adopted FY 2023 Operating Budget, when a one-time principal payment of $5 million was made in FY 2023 that reduced the outstanding balance of the Department’s Line of Credit from $21 million to $16 million is excluded.
Attachment 2 is the Department’s annual comparative Budget Analytics prepared for use for the Commission in its annual review of the Department’s Operating Budget and CIP.
29.1.18 Mayor Keeley, Vice Mayor Golder, and Councilmembers June 6, 2023
Using these budget analytic reports, the Commission has been actively tracking several key indicators of financial health; for example, how actual revenues generated by water sales compare with revenue projections. Tracking this metric helps both staff and Commissioners keep focused on how accurate our system is for projecting revenues, which helps us identify and implement refinements to our projections in the event we are over- or under- forecasting.
Another metric being tracked is highlighted in Figure 1 of Attachment 2. Figure 1 shows that the Department routinely underspends its adopted budget by about 15%.
Over the last several budget cycles, the Department has taken steps to better align proposed operating budgets with anticipated spending levels. To this end, Department staff have worked with City Finance staff to integrate personnel cost savings that typically accrue due to routine staff vacancies into project personnel costs, which typically account for about 40% of the Operating Budget.
Another major goal of the Department’s Budget Analytics work is to highlight trends and support greater understanding of financial changes at both the organization and section levels. Commissioners are always impressed by the staff’s knowledge and ability to concisely describe circumstances and conditions across the Department that influence actual spending from year-to-year as well as projected spending for the next fiscal year and beyond.
The Budget Analytics and other analyses used by the Department’s finance section and leadership team are helpful in annual budgeting and are also useful as part of ongoing financial planning and periodic work to update the cost-of-service analysis, water rate structure, and future water rates.
FY 2024-2028 CAPITAL INVESTMENT PROGRAM
The CIP budget for the five-year period FY 2024-2028 is $373 million. The focus of the CIP is on improving infrastructure resiliency, water supply reliability, and adaptability to climate change. Attachment 3 is a CIP Summary, broken down by project category, for the five-year CIP period FY 2024-2028.
The proposed CIP budget for FY 2024 totals $31.9 million. The FY 2024 funding level will be supplemented by a significant, unspent amount carried over from FY 2023. The carryover is associated with slower-than-anticipated CIP project completion for several large projects, partly due to weather conditions this past winter. Despite these delays, major progress has been made on several key CIP projects during FY 2024 including:
• The Newell Creek Dam Inlet/Outlet Replacement project is a $99 million replacement of a major piece of water system infrastructure. The project was awarded to Obayashi Corporation in Spring 2020 and is nearing completion.
Recent activities include tunnel backfill and tie-ins to both the new intake structures within the reservoir and to the Newell Creek Pipeline. Installation of Loch Lomond’s new aeration system that helps manage and limit algae blooms in the lake was temporarily delayed while
29.1.19 Mayor Keeley, Vice Mayor Golder, and Councilmembers June 6, 2023
the major construction of the new inlet/outlet structure was completed and is now also complete. Finally, required work is also proceeding on multiple restoration and mitigation projects that are part of this larger project.
• The Graham Hill Water Treatment Plant (GHWTP) Concrete Tanks Replacement project is a $45.9 million replacement of three original concrete tanks that were constructed when the now 62-year-old GHWTP was built. Pacific Hydrotech Corporation was awarded the construction contract for this work in February 2021. In FY 2023, the solids and reclaimed water tanks were completed, and the contractor also finished major electrical work and retaining walls. Once the two new tanks are in service, demolition of the final two original tanks and construction of the third new tank will commence. Project completion is expected in Fall 2024.
• The $157 million GHWTP Facility Improvements Project (FIP) is needed to renovate the Department’s only surface water treatment plant, which was originally commissioned in 1960. The project includes treatment process upgrades and improvements to the site, infrastructure, and structural components to enhance reliability and to adapt this critical facility by addressing the impacts of climate change on source water quality. The project design-build team will complete the design phase in 2024 with a subsequent construction duration from November 2024 through May 2028.
• Newell Creek Pipeline (NCP) Replacement – NCP is a 9.5-mile pipeline and the Department’s only means of delivering stored water from Loch Lomond to the GHWTP.
The pipeline was constructed in the 1960’s and is subject to a number of vulnerabilities and reliability issues that necessitate its replacement. The NCP will be replaced in three phases, with Phases 1 and 2 being prioritized in the near term. These projects are described below.
Phase 1 will replace the 4.4-mile-long segment from Felton to GHWTP. This segment is in a narrow, difficult to access right-of-way through Henry Cowell State Park and has been the site of multiple failures creating emergency water supply conditions over the last six years.
Considerable progress in FY 2023 includes finalizing the 100% design for Phase 1 and completing work needed to comply with the California Environmental Quality Act (CEQA).
Easement negotiations and permitting are ongoing for this phase of the project. Construction is scheduled to commence in January 2024 and completion is expected in Spring 2026. The forecasted construction cost for Phase 1 is $41 million.
Phase 2 will address the vulnerability of the NCP to landslide and earthquake activity in the vicinity of Brackney Road. This project has been under development since very wet conditions in Winter 2017, which demonstrated how vulnerable this pipeline is in that location, as well as how difficult and unsafe an emergency repair would be should the pipeline continue to fail in wet weather conditions.
Phase 2 will relocate approximately 2,250 lineal feet of the pipeline using horizontal directional drilling to place the pipeline into bedrock so that it is protected from earthquake and landslide activity. This will increase the reliability of the Department’s access to Loch Lomond supply during very wet weather conditions and other natural hazards. This project
29.1.20 Mayor Keeley, Vice Mayor Golder, and Councilmembers June 6, 2023
is also at 100% design, has completed CEQA, and is expected to have a construction cost of $14.2 million. Construction will overlap with Phase 1 and is scheduled to be completed in the first quarter of 2025.
Phase 3 will replace the remaining segments from Loch Lomond to Brackney and from the new Brackney segment to Felton. It is scheduled to begin design in 2027. • Water Supply Augmentation work in the CIP is focused on implementing the Councilapproved Securing Our Water Future Policy and developing supplemental water supply to improve the reliability of Santa Cruz’s water supply. The near-term focus is on the ongoing evaluation and implementation of Aquifer Storage and Recovery (ASR) in the Mid-County Groundwater Basin (MCGB) as well as completing technical and feasibility analyses on other supply options including water transfers with other agencies, use of recycled water, and desalination.
In the MCGB underlying the eastern portion of the Department’s water service area, ASR is being implemented with the design and construction of two permanent ASR wells scheduled for completion in 2025. In the interim, ASR is being implemented in a temporary fashion as testing and modeling continues to inform the full ASR program in the MCGB which may include up to 10 ASR wells and could provide up to half of the drought supply needed to address estimated worst-case deficits during prolonged droughts.
The Department continues to evaluate the operational feasibility of interties with Soquel Creek Water District and Scotts Valley Water District. While a permanent connection exists with Soquel Creek, an intertie is currently being designed to connect the Department and Scotts Valley’s service areas. This intertie is scheduled to be operational in 2025. • The 2020 Council-authorized Meter Replacement project involves a full system meter replacement project; the advanced meters will be a critical resource for implementing the new customer assistance programs mentioned earlier in this letter. The $14-million-effort commenced in January 2022 and used a meter-installation contractor, Utility Partners of America (UPA), to expedite the work. UPA hired local labor for the project, installed 23,000 meters, and finished their work in early 2023 within budget. As planned, the most challenging installations involved obstructed meters and property-side plumbing connections found to be in disrepair, which are now being addressed by Department staff, with full project completion expected in Summer 2023.
CIP FUNDING
Given the scale of the Department’s CIP, a major focus over the last several years has been on securing the lowest cost for financing projects. The Department has had considerable success with these efforts including low-interest, long-term financing that will benefit ratepayers both now and in the future; relevant details for a few of these are listed below.
Projects with Existing Drinking Water State Revolving Loan (DWSRF) funding:
29.1.21 Mayor Keeley, Vice Mayor Golder, and Councilmembers June 6, 2023
• Both the Newell Creek Dam Inlet/Outlet Replacement project and the GHWTP Concrete Tanks project are being funded through the DWSRF program, with loan rates of 1.4%.
Repayment for these loans commences once construction has been completed for the projects in 2024.
Projects included in a July 2022 federal Water Infrastructure Finance and Innovation Act (WIFIA) loan application for $164 million:
• Along with the GHWTP FIP project, the Department included the Newell Creek Pipeline Replacement project, ASR project, and the University Tank #4 Replacement project. The first loan in the amount of $127.7 million closed on May 4, 2023. A second loan for the remaining $36 million will be available, when needed.
Projects being developed for potential Future DWSRF loan funding:
The DWSRF funding application process is multi-stepped, requiring reviews and approvals as project elements are completed, such as basis-of-design reports and environmental assessments. DWSRF loans have lower interest rates than other financing options and the Department is working to obtain best-cost financing by pursuing all the options available. • The GHWTP FIP is being developed in a manner that will allow it to be considered for funding with DWSRF funds to cover either the entire project or the additional portion of the project’s cost beyond the 49% committed through the WIFIA loan. • Phase 1 of the Newell Creek Pipeline Replacement project is also being submitted to the DWSRF for additional funding to cover either the entire project or the additional portion of the project’s cost beyond the 49% committed through the WIFIA loan.
The Department continues to actively identify and pursue Grant Funding opportunities and has had some success and some disappointments. Highlights include:
• The Santa Cruz Mid-County Groundwater Agency (MCGA) received a $7.6 million grant from the California Department of Water Resources as part of the state’s Groundwater Sustainability Plan Implementation Grant program.
This grant is supporting additional project development work for both the Department’s ASR program in the MCGB as well as for Soquel Creek Water District’s (District’s) Pure Water Soquel project. The City and the District are working collaboratively with the MCGA on the implementation of this work, which also includes funding for an additional well for each agency.
• Since 2017, the Department has been pursuing Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant Program (HMGP) funding for replacement of the Brackney Slide segment of the NCP Replacement as well as the additional segments between Felton and the GHWTP and the remaining segment of the Loch Lomond to Felton segment not being addressed by the Brackney slide repair.
29.1.22 Mayor Keeley, Vice Mayor Golder, and Councilmembers June 6, 2023
The Brackney segment has received funding for design work and a commitment of funding for up to 25% of the anticipated construction cost. Additional funding for the Brackney segment is included in various requests for Congressional Directed Funding, but the HMGP funding for the Felton to GHWTP segment has been waitlisted by the program administrator for the California Office of Emergency Services. This means that funding for this project is likely not available in any near-term timeframe.
A consequence of DWSRF and many other sources of low-interest loans is that loan funds are disbursed on a reimbursable basis. This means that the Department must have the cash to pay vendors and meet its other financial obligations and then file claims for reimbursement from approved loan funds after the costs are incurred. This approach introduces significant cash-flow challenges into the Department’s operation. To address these challenges, the Department obtained a $50 million short-term line of credit that can be used as bridge funding over the coming several years while significant DWSRF projects are under construction.
FINANCIAL PRO FORMA
With respect to financial forecasting and being able to put the proposed Budgets in an appropriate and understandable context, Commissioners would like to especially commend the Department for the financial analysis and modeling tools that they have developed and applied.
Attachment 4 is the FY 2024-2028 Financial Pro Forma.
For the last five years, the Commission’s budget review has focused heavily on how the Department’s proposed Operating Budgets and CIP influence potential customer rate increases and achieve the financial metrics that the City Council set for the Department when it adopted the 2016 LRFP and the updated 2021 LRFP.
The Financial Pro Forma is a key part of the Department’s financial planning work. It provides the Department with a model that supports providing the Commission and the Council with a comprehensive, five-year view of the Department’s revenue requirements, expenditures, and projected use of debt funding as well as the resulting debt service for capital investments.
The one-page Financial Pro Forma provides a long-range view of operating and capital spending, performance related to key financial metrics such as debt service coverage, reserve levels, and performance on reserve targets and illustrates how assumptions about capital spending and operating costs (including salary, benefits, and pension obligations) will affect revenue requirements over time. Department staff have been transparent in describing the key assumptions driving the financial model, and Commissioners have received detailed and thoughtful answers to questions about various aspects of the results presented in the Financial Pro Forma.
QUARTERLY FINANCIAL REPORTS
As the Commission has worked with the Department on budget and financial planning over the last several years, the Commission has received regular updates on the Department’s finances
29.1.23 29.1.24
Water Department
The mission of the Water Department is to ensure public health and safety by providing a clean, safe, and reliable supply of water. We strive to serve the community in a courteous, efficient, cost-effective, and environmentally sustainable manner.
We are passionate about our work and try to instill our values of integrity, innovation, objectivity, professionalism, teamwork, and transparency in everything we do. We collect water, treat, and test it, move it, store it, distribute it, track how much is used, and bill our customers for their use. We are at the end of the phone when customers call, and the smiling faces customers see when they visit the department. We educate our customers about the quality of their water and how to use less. Our work includes maintenance and operation of the Loch Lomond Recreation area as well as the protection of Majors, Liddell, Newell Creek, Zayante, and Laguna watersheds. We are stewards of an important community asset - the water system and all it entails- as well as a range of natural resources and ecosystems that many species depend on. We take pride in meeting the diverse needs of the broad region we serve and value our partnerships with neighboring agencies to develop long range solutions to the regions drinking water needs.
Water Department FY 2024 Proposed Operating Budget
29.1.25 FY 2024 Budget
Core Services
Everyday department staff work hard to produce and deliver millions of gallons of water to nearly 98,000 customers and perform all the related utility, land and natural resource management activities that often happen behind the scenes, but play a part in providing reliable, high quality water service to our community. In addition to the department's daily duties, the department is undergoing a major reinvestment in water infrastructure from upgrades to the water treatment plant, improvements to the Loch Lomond dam and the replacement of all system meters, to mention a few. To perform this work, the Water Department is organized into four areas: Operations; Engineering; Customer Service; and Administration.
Operations - The Operations group is responsible for managing the watersheds; collecting, treating and testing untreated and treated water; and storing and distributing treated water to our customers and consists of the following sections: Water Resources; Water Production; Water Quality Control (laboratory); Distribution; and the Water Recreation Facility (Loch Lomond).
• The Water Resources Management section is responsible for the drinking water source protection, environmental regulatory compliance, and general natural resource management. The section coordinates environmental projects related to water rights, water supply, habitat conservation, and environmental resource protection. • The Water Production section is responsible for production, operation, and maintenance of water storage, diversion, collection, pumping, and treatment facilities from all sources throughout the system. This 24/7 work is made more challenging with the Concrete Tank Replacement project underway and planned upgrades to the Graham Hill Water Treatment Plant soon.
• The Water Quality Control (laboratory) section performs all water quality testing and oversees matters pertaining to water quality control to maintain compliance with State and federal standards and for planning for future treatment needs. • The Water Distribution section is responsible for the maintenance and operation of all transmission mains, distribution mains, service lines, and hydrants in the service area.
Distribution staff also replace significant segments of distribution mains as part of the Capital Investment Program (CIP).
• The Water Recreation Facility section operates and maintains Loch Lomond Recreation Area. This section is also responsible for patrolling watershed property and protecting source water quality. We are pleased our ranger staff are, once again, providing in-person, watershed education program for local elementary school children at Loch Lomond.
Engineering - The Water Engineering section is composed of two main functions: Engineering and Utility and Environmental Planning.
• The Water Engineering section provides engineering, planning, project design and construction management necessary for water facilities, as well as evaluation and installation of water saving technologies. The section keeps current with new technologies and water quality issues, remaining sensitive to mitigation of environmental impacts; reviews all
29.1.26 FY 2024 Budget
requests for water services; maintains record of facilities, installations and maps; and oversees the Backflow Prevention Program. In 2017, the department embarked on an ambitious system-wide reinvestment with the Engineering section at the helm. This program includes the replacement of storage tanks, transmission lines, and the exploration of increasing storage in underground aquifers in partnership with neighboring agencies. • The Utility and Environmental Planning group helps the department to plan adequately for a 21st century drinking water system. Foundational documents such as the Urban Water Management Plan, serves as a guide to future projects by ensuring there are adequate water supplies. In addition, there are numerous federal, State and local environmental laws the department must comply with to complete the planned infrastructure investments in the water system.
Customer Service - The Customer Service group consists of three sections: Customer Service; the Meter Shop; and Water Conservation. These three sections interface with the public frequently and we strive to provide consistently excellent customer service. • The Customer Service section (Santa Cruz Municipal Utilities – SCMU) provides customer service for water, sewer, refuse, and recycling services to the residents and businesses of the City of Santa Cruz, and only water services to the unincorporated surrounding areas.
This section manages utility accounts and billing, processes opening and closing of accounts, and provides service in response to customer requests.
• The Meter Shop section is responsible for reading, inspecting, installing, maintaining, and replacing water meters in the service area that covers the City of Santa Cruz and the unincorporated surrounding areas. As part of a large capital project, all water meters in the service area are being replaced. The new meters will give water customers more timely and accurate usage information as well as improve the billing process. • The Customer Assistance section will help customers resolve leaks and implement a water affordability program for low-income households.
Administration - The Water Administration section coordinates and manages department business by focusing on the following operational areas: human resources, finances, public relations, safety, and regulatory compliance. Administration is responsible for maintaining a rate structure that reflects cost of service, solicits federal, state, and other funds to finance the department's Capital Investment Program, and ensures adequate reserves. This section also facilitates the communication and interaction with the Water Commission, City Council, City Manager’s Office, and regulatory agencies.
29.1.27 FY 2024 Budget
Accomplishments and Goals
FY 2023 Accomplishments
InfrastructureDT & Other Business SectorsFiscal SustainabilityCore ServicesEquity, Health & WellBeing, SustainabilityNew & Improved Funding SourcesGreen Economy Completed construction of the $102
million Newell Creek Dam Inlet Outlet
project to renew major infrastructure
X X
Substantially completed installation of
the system-wide Meter Replacement
Project
X X X
Advanced design of the $160 million
Graham Hill Water Treatment Project
to modernize and enhance treatment
and water quality
X X X
Secured over $9M in grant funding for
regional projects to build an intertie
between the City of Santa Cruz and the
Scotts Valley Water District to increase
opportunities for conjunctive use of
surface and groundwater resources,
support opportunities for regional
collaboration, and achieve Santa
Margarita Basin Groundwater
Sustainability Plan recommendations
X X X X
Responded to, and repaired, 47 main
leaks through the end of December
2022, the largest of these in front of
Bay Street Elementary School, where
the 14” cast iron main failed
X X X X
Repaired or replaced 161 City-owned
service laterals to date X X X
Completed an ASR Demonstration
Study on Beltz Wells 8 and 12 to
determine feasibility in achieving the
City’s water supply reliability goal
X X
Improved fire suppression capability at
the Loch Lomond Recreation Area by
installing two 10,000-gallon water
storage tanks
X X X
29.1.28 FY 2024 Budget
FY 2023 Accomplishments
(continued)
InfrastructureDT & Other Business SectorsFiscal SustainabilityCore ServicesEquity, Health & WellBeing, SustainabilityNew & Improved Funding SourcesGreen Economy Finalized replacement of the Ocean
Street water main by replacing a fire
hydrant that required the longest
GHWTP shut down on record: 20
hours (a record previously set at 12
hours)
X
Developed and proposed Securing Our
Water Future to the City Council to
guide towards achieving a reliable
water supply
X X X
Provided $579,582 in federal/state
program funding to 858 low-income
water service customers and $175,778
in program funding to 546 low-income
wastewater customers
X X X
Completed the loan application and
approval process for a $125 Million
EPA WIFIA (Water Infrastructure
Finance and Innovation Act) Loan, a
low-interest, flexible-term funding
source from USEPA
X X X X
29.1.29 FY 2024 Budget
FY 2024 Goals
InfrastructureDT & Other Business SectorsFiscal SustainabilityCore ServicesEquity, Health & WellBeing, SustainabilityNew & Improved Funding SourcesGreen Economy Improve water system reliability by
converting Beltz 8 and 12 wells into
full-scale and permanent injection and
retrieval sites
X X
Commence construction on two
pipelines (Brackney Landslide Risk
Reduction project and the Newell
Creek Pipeline Felton to Graham Hill
WTP project) to enhance resilience of
water delivery
X
Begin construction on an intertie
between the City of Santa Cruz and
Scotts Valley Water District to
augment SCWD’s water supply and to
facilitate regional collaboration
X
Secure WIFIA and DWSRF funding
agreements X X
Issue a Draft Environmental Impact
Report for the project in the summer of
2023: an important GHWTP FIP
milestone
X X
Initiate a process to adopt a new
Enterprise Records Program to replace
the Utility Billing System
X X
Complete federal and state endangered
species act permitting processes X X X X
Enhance water system infrastructure at
Laguna Street Water Main
Replacement Project by replacing 350
linear feet of 4” asbestos cement water
main with 6” PVC
X
Upgrade Majors/Allegro Water Main
by replacing 1100 linear feet of 4” cast
iron with 6” PVC
X
Optimize the new TESLA Power Pack
at the Coast Pump Station to reduce
electrical costs
X
29.1.30 FY 2024 Budget
Workload Indicators and Performance Measures
Workload Indicators Focus Area
FY
2020
Actual
FY
2021
Actual
FY
2022
Actual
FY
2023
Estimate
FY
2024
Goal
Drinking water consumed
(billions of gallons)
Core Service 2.31 2.25 2.22 2.3 2.4
Number of phone calls,
emails and lobby visits
handled by SCMU
Customer Service Unit
Core Service 63,653 64,000 49,664 50,000 50,000
Amount of dollars of new
construction investments
(in millions)
Infrastructure $29.7 $46.0 $52.7 $63.4 $53.4
Performance Measures Focus Area
FY
2020
Actual
FY
2021
Actual
FY
2022
Actual
FY
2023
Estimate
FY
2024
Goal
Compliance with drinking
water standards Core Service 100% 100% 100% 100% 100%
Number of workers comp
claims requiring employee
absence greater than 30
days
Core Service 0 0 0 2 0
Maintain excellent bond
ratings to ensure favorable
borrowing rates thereby
reducing cost to customers
Infrastructure AA-/A+ AA-/A+ AA-/A- AA-/A- AA-/APercentage of customer bills paid within 60 days1
Fiscal
Sustainability 97% 91% 97% 97% 98%
1. The Governor's Executive Order prohibited water shutoff from 4/2/20 to 12/31/21. Accordingly, FY20 an FY21 are higher than normal delinquency rates.
29.1.31 Budget Summary -
FY 2024 Budget
Water
Fiscal Year 2023
Adopted
Budget
Amended*
Budget
Year-End
Estimate
Fiscal Year
2024
Proposed
Fiscal Year*
2022
Actuals
EXPENDITURES BY CHARACTER:
Personnel Services 14,449,468 17,691,832 17,911,780 15,865,111 17,721,968 Services, Supplies, and Other
Charges
13,601,279 16,156,529 17,223,256 13,462,541 18,381,435
Capital Outlay 375,401 323,000 570,523 352,230 510,732
Debt Service 4,298,354 5,131,706 10,231,706 10,698,357 6,017,146 Total Expenditures 32,724,501 39,303,067 45,937,266 40,378,239 42,631,280 EXPENDITURES BY ACTIVITY:
Water Administration 7101 6,181,308 7,339,231 6,952,880 6,260,166 7,736,667 Water Engineering 7102 2,143,153 3,057,536 2,929,364 2,739,337 3,076,409 Water Customer Services 7103 2,119,794 2,233,863 2,221,948 2,172,045 2,430,031 Water Conservation 7104 749,419 1,138,750 1,238,471 617,752 1,190,523 Water Resources 7105 1,515,018 2,498,932 2,104,695 1,096,191 2,713,228 Water Production 7106 6,978,055 8,748,102 8,315,225 7,435,136 8,271,435 Water Quality 7107 1,844,413 2,052,893 2,052,893 1,933,993 2,373,577 Water Distribution 7108 4,220,434 5,565,953 5,292,432 4,578,822 5,491,619 Water Recreation 7109 1,281,323 1,399,897 1,399,897 1,308,682 1,467,612 Water Operations 7110 416,866 635,719 635,719 344,036 749,488 Water Meter Shop 7113 803,338 1,027,837 1,027,837 1,168,652 1,293,546 Water Debt Service 7140 4,298,354 10,231,706 5,131,706 10,581,075 5,837,146 Drought Response 2014 7199 173,026 6,848 - 142,351 -
Subtotal Other Funds 32,724,501 39,303,067 45,937,266 40,378,239 42,631,280 Total Expenditures 32,724,501 39,303,067 45,937,266 40,378,239 42,631,280 RESOURCES BY FUND :
Water 711 38,306,648 38,526,543 38,534,676 40,246,160 46,670,984 Water Rate Stabilization 2,816,551 3,058,312 3,058,312
Fund
713 3,082,527 3,082,527
Water System 1,210,153 472,000 472,000
Development Fees Fund
715 1,002,512 1,042,612
Total Resources 42,333,353 42,056,855 42,064,988 44,331,199 50,796,123 TOTAL AUTHORIZED PERSONNEL:
FY 2022 FY 2023 FY 2024
118.25 121.25 121.25
*Sums may have discrepancies due to rounding 29.1.32
FY 2024 Budget
Staffing
Positions
2020-21
Revised*
2021-22
Revised*
2022-23
Revised*
2023-24
Proposed
FY 2024
Change
Administrative Assistant I/II 2.00 2.00 2.00 2.00 -
Administrative Assistant III 2.00 2.00 2.00 2.00 -
Assistant Engineer I/II 4.00 4.00 4.00 4.00 -
Associate Planner I/II 3.00 3.00 3.00 3.00 -
Associate Professional Engineer 4.75 4.75 4.75 4.75 -
Chief Ranger 1.00 1.00 1.00 1.00 -
Community Relations Specialist 1.00 1.00 1.00 - (1.00)** Customer Service Manager 1.00 1.00 1.00 1.00 -
Deputy Water Director/Engineering Mgr 1.00 1.00 1.00 1.00 - Deputy Water Director/Operations Mgr 1.00 1.00 1.00 1.00 - Director of Water Department 1.00 1.00 1.00 1.00 -
Engineering Associate 1.00 1.00 1.00 1.00 -
Engineering Technician 2.00 2.00 3.00 3.00 -
Environmental Microbiologist I/II/III 2.00 2.00 2.00 2.00 - Environmental Programs Analyst I/II 1.00 1.00 1.00 3.00 2.00 Laboratory Technician 2.00 2.00 2.00 2.00 -
Management Analyst 3.00 3.00 3.00 3.00 -
Principal Management Analyst 1.00 2.00 2.00 2.00 -
Principal Planner 1.00 1.00 1.00 1.00 -
Ranger I/II 3.00 3.00 3.00 3.00 -
Ranger Assistant 3.50 3.50 3.50 3.50 -
Senior Electrician 1.00 1.00 1.00 1.00 -
Senior Professional Engineer 1.00 1.00 1.00 1.00 -
Senior Ranger 2.00 2.00 2.00 2.00 -
Senior Water Distribution Operator 6.00 6.00 6.00 6.00 - Superintendent of Water Treatment &
Production 1.00 1.00 1.00 1.00 -
Superintendent of Water Distribution 1.00 1.00 1.00 1.00 - Utility Account Specialist 4.00 4.00 4.00 4.00 -
Utility Maintenance Technician 4.00 4.00 4.00 4.00 -
Utility Service Field Technician I/II 2.00 2.00 2.00 2.00 - Utility Service Representative I/II 6.00 6.00 6.00 6.00 - Utility Supervisor 1.00 1.00 1.00 1.00 -
Water Chief Financial Officer 1.00 1.00 1.00 1.00 -
Water Conservation Representative 2.00 2.00 2.00 - (2.00) Water Distribution Crew Leader III/IV 6.00 6.00 6.00 6.00 - Water Distribution Operator II/ III 9.00 9.00 9.00 9.00 - Water Distribution Sup V Chief
Distribution Operator 1.00 1.00 1.00 1.00 -
Water Facilities Electrical/Instr Tech II/III 1.00 1.00 1.00 1.00 - Water Facilities Field Supervisor 1.00 1.00 2.00 2.00 -
29.1.33 FY 2024 Budget
2020-21
Revised*
2021-22
Revised*
2022-23
Revised*
2023-24
Proposed
FY 2024
Change
Water Facilities Mechanical Tech II/III 2.00 2.00 2.00 2.00 - Water Facilities Mechanical Supervisor 1.00 1.00 1.00 1.00 - Water Meter Specialist I/II 3.00 3.00 3.00 3.00 -
Water Meter Specialist Lead - - - 1.00 1.00
Water Meter Supervisor 1.00 1.00 1.00 1.00 -
Water Meter Technician 1.00 1.00 1.00 1.00 -
Water Quality Chemist I/II/III 2.00 2.00 2.00 2.00 -
Water Quality Manager 1.00 1.00 1.00 1.00 -
Water Resources Analyst 3.00 3.00 3.00 3.00 -
Water Resources Supervisor 1.00 1.00 1.00 1.00 -
Water SCADA Analyst - - 1.00 1.00 -
Water Treatment Operator II/III/IV 8.00 8.00 8.00 8.00 - Water Treatment OIT II/III/IV 1.00 1.00 1.00 1.00 -
Water Treatment Sup IV/V-Chief
Plant Operator 1.00 1.00 1.00 1.00 -
Watershed Compliance Manager 1.00 1.00 1.00 1.00 -
117.25 118.25 121.25 121.25 -
*Revised salary authorizations are Adopted staffing plus any Mid-year adjustments ** 1.00 FTE Community Relations Specialist will begin reporting to City Manager’s Office
29.1.34 FY 2024 Budget
Organization Chart
29.1.35 Water Department FY 2024 Budget Analytics
29.1.36 29.1.37
29.1.38 29.1.39
FY 2024-28 CIP Summary by Category
FY 2024
Request
FY 2025
Estimate FY 2026 Estimate FY 2027 Estimate FY 2028 Estimate FY 2024 - FY 2028
Budget
Water Supply Augmentation Strategy 7,817,006 30,158,462 18,871,347 12,853,223 13,303,162 83,003,200 Raw Water Storage Projects - 560,737 571,471 465,971 349,433 1,947,612 Raw Water Diversion and Groundwater System Projects - 59,106 583,516 1,523,694 3,581,672 5,747,988 Raw Water Transmission 2,115,516 26,032,567 15,774,712 3,668,262 7,665,017 55,256,073 Water Treatment 16,193,998 35,841,816 51,486,522 40,725,195 38,416,069 182,663,601 Distribution System Storage, Water Main, & Metering Projects 858,572 6,109,384 1,019,676 973,320 1,007,392 9,968,345 Site Safety & Security 12,036 200,790 - - - 212,826
Staff Augmentation -Water Program Administration 1,695,840 2,614,352 2,607,524 2,601,461 2,583,750 12,102,926 Emergency Facility Improvements and System Repair 591,502 - - - - 591,502 Contingency - Water Program Management Reserve 2,626,394 8,001,620 8,607,346 1,776,219 330,044 21,341,623 TOTAL 31,910,865 109,578,835 99,522,114 64,587,345 67,236,538 372,835,696 Newell Creek Pipeline Rehab/Replacement (Felton/GHWTP & Felton/Loch Lomond), Brackney Landslide Area Pipeline Risk Reduction, and North Coast Pipeline Repair/Replacement (Phase 4)
Water Supply Resiliency & Climate Adaptation Projects
ASR Planning, ASR Mid County Existing Infrastructure, ASR Mid County New Wells, Santa Margarita Groundwater, Water Supply Augmentation, Recycled Water Feasibility Study, and Intertie 1: SVWD & SCWD
Infrastructure Resiliency & Climate Adaptation Projects Newell Creek Dam Inlet/Outlet Replacement Project and Aerators at Loch Lomond Tait Diversion Retrofit and Felton Diversion Pump Station Improvements GHWTP Concrete Tanks Replacement, GHWTP Facilities Improvement Project, Facility & Infrastructure Improvements, and River Bank Filtration Study, Beltz 12 Ammonia Removal, and Beltz Water Treatment Plant Upgrades
University Tank No. 4 Rehab/Replacement, Engineering and Distribution Main Replacement Projects, Distribution System Water Quality Improvements, and Facility & Infrastructure Improvements
Other Risk Management & Risk Reduction Projects
Graham Hill WTP Entrance Improvements, Security Camera & Building Access Upgrades, GHWTP SCADA Radio System Replacement, GHWTP SCADA I/O Comm Replacement, CMMS Software Replacement (Water share)
Union/Locust Admin Building Back Up Power Generator and Branciforte Streambank Restoration P:\_Public\Water Commission\2023 Water Commission\06-05-23\4 - Proposed FY 24 Budget and CIP\FY 2024-28 CIP Summary by Category 6/1/2023 Water Department FY 2024-FY 2028 CIP Summary
29.1.40 Water Department FY 2024 Financial Pro Forma
City of Santa Cruz Water Department Pro-Forma Projections 2023 2024 2025 2026 2027 2028
$ 3,849,280 $ 4,474,198 $ 5,201,497 $ 5,562,041 $ 5,947,543 $ 6,179,256 $ 40,092,547 $ 46,116,668 $ 53,549,702 $ 56,572,432 $ 60,288,764 $ 62,637,577 Elevation Surcharges $ 352,788 $ 352,788 $ 352,788 $ 352,788 $ 352,788 $ 352,788Rate Stabilization Revenue $ 3,163,368 $ 3,163,368 $ 3,163,368 $ 3,163,368 $ 3,163,368 $ 3,163,368Manual Adjustment to approved water revenu $ (5,188,829) $ (5,372,944) $ (6,261,317) $ (5,780,174) $ (5,275,368) $ - $ 42,269,155 $ 48,734,079 $ 56,726,468 $ 60,640,594 $ 64,824,795 $ 72,332,989 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 562,044 $ 562,044 $ 562,044 $ 562,044 $ 562,044 $ 562,044 $ 2,062,044 $ 2,062,044 $ 2,062,044 $ 2,062,044 $ 2,062,044 $ 2,062,044 $ 44,331,199 $ 50,796,123 $ 58,788,512 $ 62,702,638 $ 66,886,839 $ 74,395,033$ 16,582,877 $ 17,721,968 $ 18,734,656 $ 19,922,352 $ 21,192,020 $ 22,549,790$ 14,407,688 $ 18,381,435 $ 15,884,476 $ 16,678,700 $ 17,512,635 $ 18,388,267 $ 394,171 $ 352,230 $ 434,574 $ 456,302 $ 479,117 $ 503,073 $ - $ - $ - - $ $ - $ -
$ 31,384,737 $ 33,165,204 $ 35,053,706 $ 37,057,355 $ 39,183,772 $ 41,441,131$ 12,946,462 $ 17,630,919 $ 23,734,806 $ 25,645,284 $ 27,703,067 $ 32,953,902$ 63,437,941 $ 53,448,020 $ 109,578,833 $ 99,522,116 $ 64,587,345 $ 67,240,538 $ 490,020 $ 5,043,995 $ 7,964,084 $ 1,030,000 $ -
$ 36,150,813 $ 12,580,383 $ 6,295,419 $ 652,975 $ 465,971 $ 349,433 $ 4,000,000 $ 16,491,999 $ 58,517,320 $ 54,898,833 $ 40,739,034 $ 2,565,960 $ - $ - $ - - $ $ - $ -
15,317,758 $ 9,307,518 $ 11,301,753 $ 13,153,009 $ 12,797,812 $ 12,952,329 $ 7,479,350 $ 10,024,125 $ 25,500,257 $ 29,787,299 $ 10,584,528 $ 51,372,816$ 5,201,605 $ 7,463,169 $ 11,505,137 $ 11,507,574 $ 13,865,623 $ 18,892,181 $ (7,572,901) $ 860,231 $ 927,916 $ 984,701 $ 1,039,632 $ 1,109,393 Fund 717 (Emergency Reserve) $ 3,014,540 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000Fund 713 (Rate Stabilization) $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000Fund 716 (90 Day Operating Reserve) $ 7,738,702 $ 8,177,722 $ 8,643,380 $ 9,137,430 $ 9,661,752 $ 10,218,361Fund 711 (Water Operations) $ 7,738,702 $ 8,174,454 $ 8,636,712 $ 9,127,362 $ 9,642,672 $ 10,195,455
2.49x 2.36x 2.06x 2.23x 2.00x 1.74x1.50x 1.50x 1.50x 1.50x 1.50x 1.50x 180 180 180 180 180 180180 180 180 180 180 180
Debt Service
Total Rate Revenue
Other IncomeInvestment Income
Total Non-Rate RevenueNon-Rate RevenueDebt Funded (Bonds or Line of Credit)Pay-Go Funded Revenues
Year
Volumetric RevenueFixed Fee Revenue
Ending Cash Balances by Fund
Grant Funded
Total RevenuesCapital Expenditures Net Operating RevenuesTotal Operating Expenses Other Operating ExpensesCapital OutlayServices, Supplies & Other Days' Cash TargetDays' Cash (Includes only Funds 711 & 716)Debt Service Coverage TargetDebt Service Coverage (W/Out Reserves)Personnel Operating ExpensesTotal Cash BalancesCoverage and Targets Currently Funded
Net Income
SRF FundedWIFIA Funded
C:\Users\hcagliero\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\HA5XPBFF\FY 2023-28 Financial Pro Forma 6/1/2023 29.1.41
WATER COMMISSION
INFORMATION REPORT
DATE: 6/1/2023
AGENDA OF: 6/05/2023
TO: Water Commission
FROM: David Baum, Chief Financial Officer
Malissa Kaping, Principal Management Analyst
SUBJECT: Fiscal Year 2023 3rd Quarter Unaudited Financial Report RECOMMENDATION: That the Water Commission accept the Fiscal Year 2023 (FY 2023) 3rd Quarter Unaudited Financial Report.
BACKGROUND: On June 6, 2016, the Water Commission approved the Water Department’s Long-Range Financial Plan (LRFP) which created a framework to ensure financial stability and maintain the credit rating needed to debt finance major capital investments planned for the utility. An updated LRFP was approved by the Water Commission on August 23, 2021. The LRFP includes financial targets for debt service coverage ratio (1.5x), a combined 180-days cash on hand, $3.1 million in an Emergency Reserve, and a $10 million Rate Stabilization Reserve.
The data in the Quarterly Financial Report provides a snapshot in time and represents the time period of July 1, 2022, through March 31, 2023. The City operates on a fiscal year basis, which closes on June 30th.
In 2019, an Ad Hoc Subcommittee of the Water Commission and Water Department staff worked together to update the quarterly financial report. The purpose of the update was to provide a clearer picture of financial trends and results to the Water Commission. By conveying better information, we are able to show successes, identify problem areas, and provide information to demonstrate that appropriate responses are being implemented. With each successive financial report, Department staff have updated the report to reflect Commissioners’ comments and further refine the information presented.
DISCUSSION: The attached financial report presents the Department’s unaudited fiscal outlook through the third quarter of FY 2023 and reflects the transactions posted during the time period of July 1, 2022, through March 31, 2023. Page 1 of the attached Financial Report is focused on the Operating budget and Page 2 summarizes the Capital budget. Noteworthy items are discussed on the following pages.
Example of Quarterly Financial Reports Prepared for and Distributed to the Water Commission
29.1.42 Operating Revenues
Water sales are 3% below budgeted amounts. The FY 2023 budget forecasts a 6.9% increase in water sales. We expect higher water use through the end of June enabling the Department to meet or exceed budgeted revenues for FY 2023.
For the nine-month period ending March 31, 2023, consumption is trending five percent higher compared to the same period last year.
In FY 2023, the Department received $492,466 from a Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant and from the California Office of Emergency Services for the Brackney Landslide Pipeline Risk Reduction project to mitigate potential damage from increasing severe storms.
In the period of fiscal year 2021 to May 31, 2023, Water Department staff submitted forty-five Drinking Water State Revolving Fund (SRF) disbursement claims to the State Water Resources Control Board (SWRCB) for the Newell Creek Inlet/Outlet Pipeline Replacement and Concrete Tanks Replacement projects totaling $102.3 million. Through May 31, 2023, $95.4 million was received and $7.0 million is owed to SCWD.
A $50 million line of credit was obtained on June 15, 2021, and will supplement cash flow while SCWD awaits reimbursement from SRF. $21 million was drawn from the line of credit. $5 million was repaid on December 1, 2022. $16 million remains outstanding.
On May 4, 2023, SCWD received a $127.7 million loan from the United States Environmental Protection Agency (EPA) through its Water Infrastructure Finance and Innovation Act (WIFIA) Loan program. The Loan provides 49% of the funding needed for the Graham Hill Water Treatment Plant improvements, Newell Creek Pipeline Replacement (GHWTP – Felton), University Tank 4 Replacement, and Aquifer Storage and Recovery projects. This loan program has produced loans for other water agencies with more favorable terms than are available in traditional capital markets. The loan to SCWD carries an interest rate of 3.77% and matures in 40 years. Compared to a tax-exempt bond issue, we estimate interest savings of more than $18 million over the life of the loan.
The expected reimbursements, line of credit and grants described above will help improve cash flow and cash reserves contemplated by the LRFP.
Operating Expenses
Operating expenses are trending 19% below the Adopted Budget. Personnel costs are down 16% due primarily to the 10-14 vacant positions during the first nine months of the fiscal year. The vacancy rate is approximately 12% of budgeted positions; the budget assumes no vacancies.
Significant operating expenses trending lower than the budget are as follows:
29.1.43 • Legal, training, printing/binding and postage are under budget by $151,000. The ongoing reduction of outside services is attributed to the drought-related reduction in revenues, which reduces funds available for third-party services. • Electricity cost for the period was $909,000, which is under budget by $309,000 compared to the Adopted Budget. Electricity is trending lower by 14%, when compared to the same period last year. As improvements are designed for the water system, we will comply with the City’s Climate Action Plan.
These highlighted operating expenses are paid from the Services, Supplies and Other line items.
Capital Investment Program (CIP) Highlights
Thirty-three CIP projects were active during the first nine months of FY 2023 and $30.09 million was spent. This amount is nearly 50% of the current estimate of $60.38 million for total expenses for FY 2023 which is similar to the rate of spend versus estimates at this point in prior years. The $60.38 million in estimated spend includes project contingencies and Management Reserve which will likely not be fully spent. It is also worth noting that Consultants and Contractors bill in arrears and the bulk of FY 2023 expenses will be paid in July and August and accrued back to June. Spending and estimates remain well below the FY 2023 Amended Budget of $96.6 million.
The remaining unspent appropriations will be applied to the FY 2024 CIP Budget.
Top CIP Spending
Over 88% of FY 2023 spending through March 31st was for four projects: Newell Creek Inlet/Outlet Pipeline Replacement (NCD I/O), the Graham Hill Water Treatment Plant (GHWTP) Concrete Tanks project, the Meter Replacement project, and the GHWTP Facilities Improvement Project.
29.1.44 There are twenty-four projects included in Other above. Of that group, the following projects exceeded $100,000 in spend: Aquifer Storage and Recovery planning and Mid-County Existing Infrastructure projects, the Brackney Landslide Area Pipeline project, CMMS Software Replacement, Tait Diversion Retrofit project, and Intertie 1 (Scotts Valley Water Department– SCWD) project.
Management Reserve Use
$2.74 million was moved from Management Reserve to fund two main replacement projects on Soquel Avenue and Soquel Drive, and to fund the relocation of a utility pole at the GHWTP entrance.
FISCAL IMPACT: None.
PROPOSED MOTION: Motion to accept the FY 2023 Third Quarter Financial Report.
ATTACHMENTS:
1. Santa Cruz Water Department Financial Report
CIP Spending FY 2023 Thru 3/31/23
Top Ten (Total: $30.1M)
NCD I/O $13,500,000
GHWTP Concrete Tanks $5,300,000
Meter Replacement $5,100,000
GHWTP FIP $2,700,000
Water Admin $800,000
Water Supply Aug $500,000
Main Replacements $400,000
NCP (Felton-GHWTP) $400,000
U4 Tank $300,000
Other $1,100,000
29.1.45 Financial Summary
FY 2023 Adjusted
Budget YTD Budget Actual Variance $+/(‐)
Variance %
+/(‐)
Operating Revenues
Water Sales 39,793,705 29,845,279 28,837,092 (1,008,187) (3%) Other Charges for Services 1,219,800 914,850 1,074,439 159,589 17% Other Revenues 575,883 431,912 310,625 (121,287) (28%) Grants 60,664 45,498 492,466 446,969 ‐ Investment Earnings 6,600 4,950 52,995 48,045 ‐ Total Operating Revenues 41,656,652 31,242,489 30,767,618 (474,871) (2%) Operating Expenses
Salaries & Wages 11,440,159 8,580,119 7,183,778 (1,396,342) (16%) Employee Benefits 6,471,622 4,853,717 4,136,558 (717,159) (15%) Services, Supplies & Other 17,223,256 12,917,442 9,652,978 (3,264,464) (25%) Capital Outlay 570,523 427,893 382,307 (45,585) (11%) Debt Service ‐ Principal & Interest 10,231,706 7,673,780 6,396,522 (1,277,258) (17%) Total Operating Expenses 45,937,266 34,452,950 27,752,142 (6,700,808) (19%) Net Operating Revenue (Loss) (4,280,615) (3,210,461) 3,015,475 ‐ ‐ Debt Service Coverage (Target >= 1.50x) 1.14x 1.67x 6.74x Revenues
Expenses
Cash
Fund Balances YTD Balance Year End
Target Balance
711 ‐ Enterprise Operations 6,081,568 8,804,111 713 ‐ Rate Stabilization 12,343,375 10,000,000 715 ‐ System Development Charges 6,476,285 N/A 716 ‐ 90 Day Operating Reserve 8,245,924 8,804,111 717 ‐ Emergency Reserve 3,024,142 3,000,000 718 ‐ Mount Hermon June Beetle Endowment 145,824 144,000 719 ‐ Equipment Replacement 590,086 700,000 Days' Cash (Includes only Funds 711 & 716) 146 180 Days' Cash Target 180 180 SANTA CRUZ WATER DEPARTMENT FINANCIAL REPORT
Fiscal Year 2022‐23 through March 31, 2023
(Unaudited)
Actual vs. YTD Budget
‐
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Water Sales Revenue (in thousands)
FY 20 FY 21 FY 22 FY 23
‐
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
1,800,000,000
2,000,000,000
FY 20 FY 21 FY 22 FY 23
3rd Qtr Water Consumption (in gallons)
Single Family Residential Commercial Multifamily Residential IRR/N Coast UCSC
FY 22, 3rd Qtr $19.8 million
Salaries & Wages Employee Benefits Services, Supplies & Other FY 23, 3rd Quarter $21.4 million
Salaries & Wages Employee Benefits Services, Supplies & Other
29.1.46 Project Titles
Prior Year
Actuals
Project Cost
Estimate (1)
(escalated dollars)
FY23 Actuals
thru 3/31/23
FY23-32 Estimate
To Complete
Project
Schedule
WATER SUPPLY RESILIENCY & CLIMATE ADAPTATION PROJECTS
Water Supply Augmentation Strategy
Beltz Wellfield Aquifer Storage and Recovery
ASR Planning 3,250,079 5,151,696 112,657 1,788,960 2019-2023 ASR Mid County Existing Infrastructure 383,887 8,971,750 168,144 8,419,720 2020-2027 ASR Mid County New Wells - 26,696,860 - 26,696,860 2021-2027 Santa Margarita Aquifer Storage and Recovery and In Lieu Water Transfers and Exchanges ASR Santa Margarita Groundwater - 456,381 - 456,381 2020-2027 ASR New Pipelines - - - - 2022-2027
In Lieu Transfers and Exchanges - - - -
Studies, Recycled Water, Climate Change, Aquifer Storage and Recovery Water Supply Augmentation 1,613,222 89,876,215 481,859 87,781,134 2019-2033 Recycled Water Feasibility Study 847,884 1,792,224 46,615 897,725 2018-2023 Subtotal Water Supply Augmentation Strategy 6,095,072 132,945,127 809,274 126,040,781 Subtotal Water Supply Resiliency and Climate Adaptation Projects 6,095,072 132,945,127 809,274 126,040,781
INFRASTRUCTURE RESILIENCY AND CLIMATE ADAPTATION
Raw Water Storage Projects
NCD I/O Replacement Project 74,224,158 105,378,613 13,530,655 17,623,801 2018-2024 Aerators at Loch Lomond 460,791 741,911 33,983 247,137
Subtotal Raw Water Storage Projects 74,684,949 106,120,524 13,564,638 17,870,937 Raw Water Diversion and Groundwater System Projects
Laguna Creek Diversion Retrofit 2,935,396 3,130,276 30,517 164,364 2018-2023 Tait Diversion Retrofit 385,639 7,642,148 108,311 7,148,198 2018-2030 Coast Pump Station Rehab/Replacement - 9,777,912 - 9,777,912 2029-2033 Felton Diversion Pump Station Improvements 351,872 4,408,650 1,667 4,055,111 2020-2029 Beltz 12 Ammonia Removal 177,281 1,915,818 75,278 1,663,259 2021-2025 Beltz WTP Filter Rehabilitation 465,370 987,062 21,259 500,433 2022-2023 Beltz WTP Upgrades (4) - 17,663,985 6,653 17,657,332 2022-2027 Subtotal Raw Water Diversion and Groundwater System Projects 4,315,558 45,525,851 243,685 40,966,608 Raw Water Transmission
Newell Creek Pipeline Rehab/Replacement - Planning 1,568,669 1,627,564 2,983 55,912 2018-2023 Newell Creek Pipeline Felton/GHWTP 2,555,890 33,194,375 372,771 30,265,714 2019-2027 Newell Creek Pipeline Felton/Loch Lomond - 38,458,126 - 38,458,126 2027-2033 Newell Creek Pipeline Grant Management 10,371 30,000 7,498 12,131 Brackney Landslide Area Pipeline Risk Reduction (2) 1,604,376 11,540,345 240,700 9,695,269 2020-2026 North Coast Pipeline Repair/Replacement - Planning (w/ Major Div) 907,956 943,724 67 35,701 2018-2021 North Coast Pipeline Repair/Replacement - Ph 4 - 90,802,291 - 90,802,291 2026-2032 Subtotal Raw Water Transmission 6,647,262 176,596,425 624,018 169,325,145 Surface Water Treatment
GHWTP Flocculator & Tube Settler Replacement 3,285,958 3,373,941 3,077 84,906 2018-2022 GHWTP Concrete Tanks Replacement 16,663,399 46,673,142 5,282,178 24,727,565 2018-2026 GHWTP Facilities Improvement Project 9,852,383 151,592,006 2,662,783 139,076,840 2018-2029 River Bank Filtration Study 998,601 7,028,637 375 6,029,661 2018-2028 GHWTP SCADA Radio System Replacement - 240,000 - 240,000 On-going GHWTP SCADA IO Hardware & Wiring Upgrade - 230,000 - 230,000 2022-TBD GHWTP Chlorination Station Improvements - 250,000 - 250,000 2022-TBD Subtotal Surface Water Treatment 30,800,341 209,387,726 7,948,412 170,638,972 Distribution System Storage, Water Main and Pressure Regulation, and Metering Projects University Tank No. 4 Rehab/Replacement 371,278 6,246,806 263,904 5,611,625 2018-2026 Meter Replacement Project 6,901,970 14,910,502 5,104,941 2,903,591 2018-2023 Engineering and Distribution Main Replacement Projects (3) 13,539,850 37,146,201 399,455 23,206,896 On-going Distribution System Water Quality Improvements 33,725 107,427 7,614 66,087 2021-TBD Facility & Infrastructure Improvements 8,753 5,020,972 1,026 5,011,193 On-going Intertie 1: Santa Cruz - Scotts Valley (2) (4) - 8,720,261 182,260 8,538,001 2022-2026 Subtotal Distribution Storage, Wmain Pressure Reg, and Metering 20,855,577 72,152,169 5,959,200 45,337,393 Subtotal Infrastructure Resiliency and Climate Adaptation 137,303,687 609,782,695 28,339,953 444,139,055
OTHER RISK MANAGEMENT AND RISK REDUCTION PROJECTS
Site Safety and Security
Security Camera & Building Access Upgrades 315,490 550,996 5,388 230,117 On-going GHWTP Gate Entrance Upgrades 878,212 903,067 17,151 7,704 2020-2023 CMMS Software Replacement - Water Share 64,479 390,000 138,764 186,757 2022-2023 Subtotal Site Safety and Security 1,258,181 1,844,063 161,304 424,578 Staff Augmentation
Water Program Administration (5) 1 16,969,426 768,448 16,200,976 On-going Subtotal Staff Augmentation 1 16,969,426 768,448 16,200,976 Contingency
Management Reserve (6) - 33,456,394 - 33,456,394 On-going Subtotal Contingency - 33,456,394 - 33,456,394
Storage for Emergency Facility and System Repair Tools and Equipment Union/Locust Admin Building Back Up Power Generator 1,970 110,000 10,137 97,894 TBD Subtotal Storage for Emergency and System Repair 1,970 110,000 10,137 97,894 Other Projects
Branciforte Streambank Restoration (4) - 780,143 5,624 774,519 TBD Subtotal Other Projects - 780,143 5,624 774,519
Subtotal Other Risk Management and Risk Reduction Projects 1,260,152 53,160,026 945,512 50,954,361 GRAND TOTAL 144,658,912 795,887,848 30,094,739 621,134,197 (3) Prior year actuals for Main Replacements start in FY19. (4) Intertie 1, Branciforte Streambed, and Beltz WTP Upgrades project cost estimates established after FY23 budget adoption and are as of 12/31/22. (5) Staff augmentation budget appropriations and actual expenses are transferred to specific projects during year-end process. (6) Management Reserve budget appropriations are transferred to specific projects upon approval. (1) Project Cost Estimates are FY23 adopted budget plus FY23 adjustments/carry-forwards plus FY23-32 projections. (2) Expenses are not adjusted for grant funding.
CIP Summary: Fiscal Year 2023 3rd Quarter
29.1.47 Fiscal Year 2024
Budget Adoption
Elizabeth Cabell, Finance Director
June 13, 2023
29.1.48 Adopt the budget of the City of Santa Cruz for Fiscal Year 2024, including the Capital Investment Program, as proposed in the document entitled “City of Santa Cruz Proposed Annual Budget Fiscal Year 2024”. 1 Recommended Actions
2 3 Accept the Water Commission’s recommendations regarding the Water Department’s FY 2024 Operating and Capital Investment Program.
Amend the personnel complement and classification and compensation plans and FY 2024 budget as proposed in the document entitled “Personnel Profile – Overview of Changes”.
29.1.49 City Council
AGENDA REPORT
DATE: 06/01/2023
AGENDA OF: 06/13/2023
DEPARTMENT: Human Resources
SUBJECT: Resolution Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Public Works, City Manager, Finance, Parks and Recreation, Police, Water, Fire, Library and Human Resources Departments (HR)
RECOMMENDATION: Resolution amending the Classification and Compensation Plans for the FY 2024 budget personnel complement by implementing the approved FY 2024 budget/position changes in several departments.
BACKGROUND: Amendments related to City classifications are a standard part of the City’s annual budget process. City departments with staffing and position recommendations that change the number of authorized full-time equivalent (FTE) positions in the City’s position listing must be approved by City Council.
DISCUSSION: Departments have determined, through careful analysis and with the assistance of the Human Resources Department that the recommendations listed on the attached Personnel Profile – Overview of Changes – FY 2024 Budget will improve their operational functioning.
For FY 2024, there will be a net increase of 13 FTE positions citywide. Each deletion and addition include varying personnel cost allocations to the General Fund, Enterprise, and other funds which are identified in the attached HR Resolution.
A description of these position changes are reflected in the attached document Personnel Profile – Overview of Changes – FY 2024 Budget.
FISCAL IMPACT: The fiscal impact of these FY 2024 personnel/position changes are being approved as part of the FY 2024 adopted budget.
Prepared By:
Cathy Bonino
Principal HR Analyst
Submitted By:
Sara De Leon
Chief People Officer
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. RESOLUTION.DOCX
2. PERSONNEL PROFILE – OVERVIEW OF CHANGES – FY 2024.DOCX
29.2.1 RESOLUTION NO. NS-XX,XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING
THE PERSONNEL COMPLEMENT AND CLASSIFICATION AND COMPENSATION PLANS AND THE FY2024 BUDGET – PUBLIC WORKS, CITY MANAGER, FINANCE,
PARKS AND RECREATION, POLICE, WATER, FIRE, LIBRARY AND HUMAN
RESOURCES DEPARTMENTS
WHEREAS, staff has recommended certain modifications to the Classification and Compensation Plans.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz, as follows:
That effective July 8, 2023 the City of Santa Cruz Classification and Compensation Plans be modified to:
Activity Classification No. and Title Salary (New Classifications and Changes)
PUBLIC WORKS
Delete Position:
102-006
7831 102- Accounting Assistant II
(1.0 FTE)
Add Position
106-xxx
60%
7831,
10% ea
4103,
6105,
7302,
4210
106- Administrative Assistant
I/II (1.0 FTE)
Delete Position:
118-013
6105 118- Building Maintenance
Worker II (1.0 FTE)
Add Position
122-xxx
6105 122- Homelessness Response
Field Worker (1.0 FTE)
Change Position
106-063
7203 106- Administrative Assistant
II
Change From: .50 FTE
Change To: 1.00 FTE
29.2.2 RESOLUTION NO. NS-XX,XXX
2 Activity Classification No. and Title Salary (New Classifications and Changes)
Add Position
312-xxx
7303 312- Lead Equipment
Mechanic (1.0 FTE)
Delete (Transfer)
Position
757-003
4101 Community Relations
Specialist (1.0 FTE)
CITY MANAGER
Add Position:
729-xxx
50%
6105,
50%
1210
729- Principal Management
Analyst (1.0 FTE)
Add (Transfer) Positions
757-002
757-003
757-004
1210 Community Relations
Specialist (3.0 FTE)
FINANCE
Delete Position:
775-010
1241 775- Finance Manager
(1.0 FTE)
Add Position:
291-xxx
1241 291- Accounting Technician
(1.0 FTE)
Add Position:
826/827-xxx
1241 826/827- Buyer I/II (1.0 FTE)
Add Position:
702-xxx
1241 702- Management Analyst
(1.0 FTE)
Delete Position:
234-002
234- Sr. Payments Technician
(1.0 FTE)
Add Position:
291-xxx
1241 291- Accounting Technician
(1.0 FTE)
PARKS AND
RECREATION
Change Position FTE
180-009
3201 180-Recreation Coordinator
From: .50 FTE
29.2.3 RESOLUTION NO. NS-XX,XXX
3 Activity Classification No. and Title Salary (New Classifications and Changes)
To: 1.00 FTE
Add Position:
167- xxx
3120 167- Parks Maintenance
Worker (1.00 FTE)
Change Position
117-007
3211 117- Building Maintenance
Worker I
From: .50 FTE
To: 1.00 FTE
Change Position
180-017
3211 180- Recreation Coordinator
From: .50 FTE
To: 1.00 FTE
POLICE
Delete (Transfer)
Position
757-004
2101 Community Relations
Specialist (1.0 FTE)
WATER
Delete Positions:
208-002
208-003
7104 Water Conservation
Representative (1.0 FTE)
Add Two Positions:
141/136 – xxx
7104 141-136- Environmental
Programs Analyst I/II (1.0
FTE)
Classification Job Title
Change 276-xxx
7113
From: 276- Water Meter Specialist $4,138/mo. - $5,821/mo.
To: 214/276 Water Meter
Specialist I/II
I- $3,910/mo. - $5,503/mo.
II- $4,138/mo. - $5,821/mo.
Add new Classification
and one Position
213-xxx
7113 213- Water Meter Specialist
Lead (1.0 FTE)
$4,482/mo. - $6,305/mo.
Add Position:
708-xxx
7102 708- Senior Professional
Engineer
Delete (Transfer)
Position
7101 Community Relations
Specialist
29.2.4 RESOLUTION NO. NS-XX,XXX
4 Activity Classification No. and Title Salary (New Classifications and Changes)
757-002
FIRE
Add Position:
702-xxx
2201 702- Management Analyst
(1.0 FTE)
LIBRARY
Delete Position:
289-001
3601 289- Volunteer Coordinator
Assistant (.50 FTE)
Add Position:
740-xxx
3601 740- Library Specialist
(1.0 FTE)
Add Position:
742/750-xxx
3601 742/750- Librarian I/II (1.0
FTE)
HUMAN RESOURCES
Add Position:
720/721-xxx
1230 720/721 Human Resources
Analyst I/II (1.0 FTE)
PASSED AND ADOPTED this 13th day of June 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
29.2.5 FY 2024
Budget
Personnel Profile - Overview of Changes
Each year, City Council establishes an authorized position list by department through the budget adoption process. For FY 2024, there will be a net increase of thirteen (13) full-time equivalent (FTE) positions citywide. Each deletion and addition include varying personnel cost allocations to the General Fund, Enterprise, and other funds. The following is a summary of the position changes:
Public Works – The Public Works (PW) Department proposes the following position changes:
1a. Delete Accounting Assistant II 1.0 FTE position
Historically, the Accounting Assistant II position is assigned to the Fleet Division and supports multiple divisions at the Corp Yard with invoices, pool equipment rentals, purchase orders, change orders, and customer service-related calls and walk-ins to the office. The Accounting Assistant position is now vacant. The PW Department would like to delete this position and add an Administrative Assistant II (AA II) position to provide more general support. 1b. Add Administrative Assistant I/II 1.00 FTE position At the beginning of FY23, PW Operations received a new division, the Homelessness Response Field division, and this group needs additional help with procurement and personnel functions. At the end of 2019 (pre-COVID), the Administration division transferred one AAII position to the Parking division, and transferred the Corp Yard AAII position to the City Hall office for additional support, leaving a deficit of administrative support at the Corp Yard.
The previous AAII position that was assigned to the Corp Yard was distributed to several Public Works divisions (Fleet, Refuse, Parking, Stormwater, various General Fund accounts, and Wastewater). This new AAII position better reflects the divisions that require consistent clerical assistance from this office. The AAII would largely support the Fleet Maintenance divisions and provide support to Refuse, Operations, Street Maintenance, and the completely new Homelessness Response Field division. There are plans to revamp Fleet Maintenance programs with less antiquated processes and the AAII position would play a key support role.
The approval of an AAII for the Corp Yard would streamline efficiency of workload and allow for additional staff coverage.
2a. Delete Building Maintenance Worker I/II .50 FTE position.
The Homelessness Response Field division is new to the City and was established in the PW Department. Council approved a part-time Building Maintenance Worker II (BMWII) position effective 7/1/22, however, once the Field division was operational, it became apparent that the parttime BMWII position would not be as effective for the workload submitted to the Department.
Deleting this position and approving a part-time Homelessness Response Field Worker instead would lead to greater flexibility in assigning work to the crew and support keeping the community clean and safe from syringes, trash, and other biohazards. This position would also allow for staff to work in pairs for greater safety while in the field, especially in more remote open spaces.
29.2.6 FY 2024
Budget
2b. Add Homelessness Response Field Worker 1.0 FTE position See above under Delete Building Maintenance Worker I/II Position
3. Increase Administrative Assistant I/II position from .50 FTE to 1.0 FTE The Wastewater System requires additional administrative support in response to the increased staffing, budgeting and volume of productivity and regulatory compliance reporting demanded of the Division. This new position request is for an additional .50 FTE position of AAII to support the Wastewater System.
4. Add Lead Equipment Mechanic 1.0 FTE position
The Resource Recovery Facility purchased and installed food waste processing equipment to meet the requirements of Senate Bill 1383 (SB1383), Mandatory Organics Recycling, in FY20.
The new requirements increased the workload for the Equipment Mechanic since the waste processing equipment must be regularly maintained to ensure continued compliance with SB1383.
The PW Department currently has one Equipment Mechanic and one Equipment Service Worker assigned to the Landfill who service, maintain and repair seven light duty trucks, four heavy duty trucks, eleven heavy equipment assets as well as the food waste processing equipment with ten pumps, six motors, electrical panels and several other components. In addition there is one Equipment Mechanic and one Equipment Service Worker assigned to Recycling who maintain and repair the single streamline which has twenty-five conveyor belts, one baling machine, three forklifts and two heavy equipment assets.
Landfill operation, customer service, recycling processing and the food waste equipment has many challenges on a daily basis and must keep up with the high processing demand of the public refuse, recycling and food waste.
The approval of a Lead Equipment Mechanic would streamline the increased workload. This position would manage the Equipment Mechanics and Equipment Service Workers, providing training/cross training between work areas, managing all equipment and assets, processing invoices and maintenance records, managing inventory, and providing staff coverage.
5. Delete Community Relations Specialist 1.0 FTE position.
The Community Relations Specialist will be reassigned to the City Manager’s Office.
City Manager – The City Manager Office (CMO) proposes the following position changes:
6. Add Principal Management Analyst 1.0 FTE position
The addition of a Principal Management Analyst (PMA) to the CMO is proposed to be allocated .50 FTE to the Homelessness Response Division to support fiscal and administrative functions within the division. This includes finance, budget and fiscal analysis, purchasing and procurement (including RFP development and administration), and other data and analytical support to the division. Given the significant growth in programs and services to confront the homelessness in the City over the last year, existing staffing level is not sufficient to effectively support all programmatic
29.2.7 FY 2024
Budget
and administrative functions and accomplish projects within desired timelines and schedules. The part-time addition to support the work of the Homelessness Response Division will provide the requisite support in the key areas described above, and will allow for current staff to dedicate capacity and improve effectiveness in program implementation, planning and operations.
The other .50 FTE increase staff capacity.in the following areas: CPVAW, HiAP, Public Safety Committee, Children’s Fund, Tenant Sanctuary, Special Events Permitting Committee, plus Ad Hoc Committees for Water Street Bridge and Budget and Revenue. Additionally, project work is substantive and currently entails single-use tobacco, commission, committee evaluation and streamlining, website clean-up per Santa Cruz County Civil Grand Jury findings, model ordinance implementation for the animal shelter JPA, Council strategic plan, All In – Shaping Our Future, West Cliff Drive, and more.
7. Add Three (3) Community Relations Specialists
The CMO is requesting to change the reporting relationships of three Community Relations Specialist positions that are currently held in Water, Public Works, and Police. These positions will report to the Communications Manager and be a part of the City-wide communications team. The U.S. Bureau of Labor Statistics projected that media and communications roles would grow faster than all other occupations at an estimated 14% over the next decade. With the rise in the need for digital technology and the changing world of work, a quality communications team will be critical for continually building meaningful relationships internally and externally with the City of Santa Cruz.
Finance – The Finance Department proposes the following position changes:
8a. Delete Finance Manager 1.0 FTE position
The Department recommends the elimination of one Finance Manager as the body of work to be performed is more aligned with the more tactical positions below it, where there is greater demand and which will allow a more even distribution of the workload. The Department proposes, in addition to eliminating the Finance Manager position, adding an Accounting Technician and Buyer I/II position. (An Accountant I/II position will be moved from one division to another internally). This change will also allow managers time to focus on strategic direction and should provide opportunities for growth and movement within the department while assisting with retention of existing staff.
The additional Buyer I/II position will allow the Department to make significant progress on addressing the gaps identified in its organizational assessment. Since purchasing for the City is decentralized, there is a need to provide departments with additional training and support in issuing RFP's, IFB's, and the solicitation process. The City’s new Homelessness Response division has many unique needs related to procurement and with additional staff the Department would be able to provide additional support.
8b. Add Accounting Technician 1.0 FTE position
See above under Delete Finance Manager
29.2.8 FY 2024
Budget
8c. Add Buyer I/II 1.0 FTE position
See above under Delete Finance Manager position
9. Add Management Analyst 1.0 FTE position
As the Finance Department implements new GASB pronouncements in FY23 as well as looking ahead to the implementation of an Enterprise Resource Planning (ERP) platform in the next 3-5 years they feel it is important to have Management Analyst skills which are more in line with the needs of that division.
10a. Delete Senior Payments Technician 1.0 FTE position The Senior Payments Technician is a very specific role in the Accounts Payable and Payroll and Benefits divisions and the Department’s current need is for a more general classification to assist with various technical, clerical and financial activities. The Accounting Technician role more closely aligns with this need.
10b. Add Accounting Technician 1.0 FTE position
See above under Delete Senior Payments Technician position.
Parks and Recreation – The Parks and Recreation Department proposes the following position changes:
11. Increase Recreation Coordinator .50 FTE to 1.00 FTE position.
Currently, in the Parks and Recreation Department the Classes group operates with a half-time Recreation Coordinator and a half-time temporary position to assist with marketing and graphics.
Over the course of the last year, turnover has meant that the supervisor has spent significant amounts of time recruiting and training new staff. However, it has proved difficult to retain these staff with only part-time positions to offer. The Classes Activity has seen record revenues coming out of the pandemic, bringing in over $500,000 in FY2022. This level of revenue generation is not sustainable without solid, capable support. This area needs to shift to a more sustainable operational model. And therefore, it is recommended that the current part- time Recreation Coordinator position be increased to full time.
12. Add Parks Maintenance Worker 1.0 FTE position
Currently, the Open Spaces and Greenways activities in the Parks & Recreation Department is dependent on temporary positions to assist with management and maintenance of over 1,335 acres of Open Space and 37 miles of hiking, biking and walking trails. Since the Department moved the staffing model following the transfer of Rangers to the Police Department in 2019, turnover has meant that the supervisor has spent significant amounts of time recruiting and training new staff, without ever reaching the full complement of temporary staff. To remain viable in the maintenance and upkeep of such a vast area, this group needs to shift to a more sustainable operational model.
The Department therefore recommends adding a full- time Parks Maintenance Worker position.
13. Increase Building Maintenance Worker I/II position from .50 FTE to 1.0 FTE
29.2.9 FY 2024
Budget
The Santa Cruz Wharf is over seven acres in size, includes 60,000 feet of buildings, and hosts over one million visitors annually. This size of facility and level of use, in combination with the rigors of a marine environment, leads to a high need for maintenance work. The Department’s ability to use labor-saving tools such as paint-sprayers and powered equipment is also limited by the conditions of our Wharf Maintenance Permit.
When the half-time Wharf Recreation Coordinator position was created in fiscal year 2022 the Department made it cost-neutral by decreasing the full-time Building Maintenance Worker I position to half-time. The Department attempted to fill the gap with temporary help, but this has not proved sustainable.
Returning the Building Maintenance Worker I/II position to full-time will allow the Department to more safely and consistently perform needed maintenance work and by training a potential successor on the specifics of work on the Wharf.
14. Increase Recreation Coordinator .50 FTE to 1.00 FTE position A half-time Recreation Coordinator position was created at the Wharf in Fiscal Year 2022 to enhance recreational programming at the Wharf and increase cost recovery by drawing traffic to lease-paying businesses on the Wharf.
The current Recreation Coordinator has met or exceeded the initial objectives of the position (updating interpretation, assisting with established events such as Woodies on the Wharf, creating new events such as a summer concert series, drawing in new users such as a monthly swing dancing event) and demonstrated its potential.
Making this position full-time will allow the Parks & Recreation Department to more fully promote and activate the Wharf and beaches, leading to increased revenue directly through use of Wharf businesses and indirectly by bringing visitors to Santa Cruz.
Police – The Police Department proposes the following position changes:
15. Delete Community Relations Specialist 1.0 FTE position.
The Community Relations Specialist will be reassigned to the CMO.
Water Department - The Water Department proposes the following position and classification changes:
16a. Delete two (2) Water Conservation Representative 1.00 FTE positions The Water Department is proposing to convert two vacant Water Conservation Rep (WCR) positions to two Environmental Programs Analyst II (EPA) positions. The Department acknowledges its success in water conservation and now proposes to focus staff on customer service. In particular, the EPA positions will assist customers resolve leaks and implement a water affordability program for low- income households. The Department feels that the EPA classifications will be better suited to meet the demands of the change of focus to increased customer service and customer assistance. 16b. Add two (2) Environmental Programs Analyst I/II 1.00 FTE positions
29.2.10 FY 2024
Budget
See above under Delete two Water Conservation Representative positions
17. Classification Job Title Name Change from Water Meter Specialist to Water Meter Specialist I/II
The Water Department is requesting to change the Water Meter Specialist classification to an alternately staffed Water Meter Specialist I/II classification to allow for an entry level option and additional training time for the increasing levels of technology and analysis with the new Advanced Metering Infrastructure system. This also allows for an enhanced career ladder in the classification series.
18. Add new classification and 1.00 FTE position of Water Meter Specialist Lead The Water Department is recommending the addition of a new Water Meter Specialist Lead classification and position to properly maintain the Advanced Metering Infrastructure system by acting as the main contact in the field for troubleshooting both physical and technological problems with the system that, in order to resolve, require a more advanced level of coordination with the Meter Operations Supervisor and Utility Accounts Specialist. This also allows for an enhanced career ladder in the classification series.
19. Add Senior Professional Engineer 1.00 FTE position
The Water Department is managing a large multi-year Capital Investment Program comprised of diverse projects that are complex and have sensitive implementation timelines. While the department has invested approximately$48M peryear in infrastructure over the past four years, this has increased to $79M per year over the next 5 years. Funding these projects now includes multiple funding streams in addition to pay-as-you-go, namely the Water Infrastructure and Finance Innovation Act (WIFIA) and State Revolving Fund (SRF) loans, and grants. Management and oversite of these capital projects requires a skill set aligned with that of the Senior Professional Engineer.
Specifically, the years of experience, background and education associated with this position are needed to be able to effectively manage multiple large projects, the teams and budgets; address complex technical and administrative issues; confirm funding resources and navigate complexities of variable funding sources; confirm compliance with regulatory requirements; and ensure consistency across the variety of projects.
20. Delete Community Relations Specialist 1.0 FTE position.
The Community Relations Specialist will be reassigned to the CMO.
Fire Department - The Department proposes the following position changes:
21. Add Management Analyst 1.0 FTE position
A new Management Analyst is crucial for oversight and management of budget and grants in the Fire Department. The current PMA in Emergency Services has acquired four new grants and is applying for eight other Fire Department grants to increase outside revenue and decrease general fund cost. The current grant acquisitions total over $800K. The eight new grant requests in 2023 are
29.2.11 FY 2024
Budget
for a total of over $1M. This addition would allow for the current PMA/Emergency Services to focus on EOC training, exercises, and planning, including the build out of Zonehaven evacuation platform.
The PMA would also focus on FEMA disaster cost recovery efforts for the CZU Fire, Storms, Covid and any other future disaster cost recovery projects.
The Management Analyst would also support fire administration staff with various projects such as the annual budget, oversight of approved CIP projects, information gathering for potential shared service agreements and a forthcoming standards of coverage survey. All these projects are crucial for the Fire Department over the next three to five years.
Library - The Library Department proposes the following position changes:
22a. Delete Volunteer Assistant Coordinator .5 FTE position The Library would like to delete this position given the greater need for a Library Specialist position. 22b. Add Library Specialist 1.0 FTE position
See above deletion of Volunteer Assistant Coordinator position
23. Add Librarian I/II 1.0 FTE position
The Library will be opening the Aptos Branch Library in the fall of 2023 and will need an adult librarian assigned to this location.
Human Resources Department – The Human Resources (HR) Department proposes the following position change:
24. Add Human Resources Analyst I/II 1.0 FTE position
Recruitment challenges in varying departments has increased workload in both classification review and recruitment. The currently vacant HR Analyst I/II which was assigned to Training & Development has been reassigned to Recruitment, Classification, and Compensation to address workload concerns since delays in that area impact operations citywide.
Meanwhile the Department still needs to fill a training and development position to fully implement that existing program, while also being able to grow and develop the program to meet the changing nature of the workforce. With the new City initiative for employee engagement and organizational development, the training and development position will be able to help lead this effort. The Human Resources Department therefore requests the addition of a 1.0 FTE HR Analyst I/II position.
29.2.12 30.1
30.2 30.3
30.4 30.5
30.6 30.7
30.8 30.9
30.10 30.11
30.12 30.13
30.14 30.15
30.16 30.17
30.18 30.19
30.20 30.21
31.1 31.2
31.3 31.4
31.5 32.1
32.2 33.1
33.2