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Home My WebLink AboutSewer Service Fund Budget and Drainage Repairs Capital Impro Council/Agency Meeting Held: Deferred/Continued to: Approved ❑ Cond' 'onally Approved ❑ Denied CWCIer s Signature ouncil Meeting Date: November 5, 2001 Department ID Number. PW 01-136 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION aCz �) SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS_ SUBMITTED BY: RAY SILVER, City AdministratorXW _. n '' ° PREPARED BY OBERT F. BEARDSLEY, Director of Public Works n CLAY MARTIN, Director of Administrative Services , SUBJECT: Approve Sewer Service Fund and Capital Improvement Budgets Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: _ Upon adoption of the Sewer Service_Charge, staff was directed to return to City Council with expense and revenue budgets for the Sewer Service Fund and an expense budget for the redirected General Fund monies. In addition, four 2000/01 carryover projects were not included in the adopted budget. Funding Source: The Sewer Service Fund is a new fund, 511 and new business unit, 51185201. (Attachment#1) The amount of$713,931 is budgeted in the Capital Improvement Fund, 301. (Attachment #2) Carryover projects in the amount of $6,076,430 are budgeted in Water Fund, FHWA grants, Measure M and General Fund Capital Improvements. (Attachment #3) Recommended Action: Motion to: 1. Approve the Fiscal Years 2001/03 Sewer Service Fund Budget. 2. Approve the Fiscal Years 2001/03 Drainage Repairs Capital Improvement Budget. 3. Amend the FY 2001/03 budget with the addition of carryover projects in the amount of $6,076,430. Alternative Action(s): Deny approval and provide staff with direction regarding alternative expenditures. Denial of action #3 would result in the cancellation of signed contracts for street rehabilitations and the Central Library roof replacements. RE__JEST FOR COUNCIL ACTIO. MEETING DATE: November 5, 2001 DEPARTMENT ID NUMBER: PW 01-136 Analysis: On August 21, 2001 the City Council adopted a sewer service charge. Staff was directed to return with an appropriation budget allocating projected revenues for approximately $6.3 million annually to sewer maintenance and sewer capital improvements. In the proposed Sewer Service Fund budget, approximately $1.7 million annually is directed toward salaries and maintenance activities, including cleaning, routine repairs and operation of the sewer lift stations. In addition, approximately $5.9 million is budgeted over the two years for capital repairs including sewer line rehabilitation and sewer lift station rebuilds. Emergency reserve funds in the amount of$500,000 each year have been designated. A fund balance of approximately $1.5 million will be carried for the next two years. Staff has determined that it would be prudent to have funds available to take advantage of potential grants or unforeseen construction costs for capital projects. In the approved FY 2001/03 budget, $713,931 was designated for capital improvement projects. These funds will be used for improvements to the drainage pump stations. Drainage facilities were designated as the next highest priority in the Infrastructure Advisory Committee's final report. After adoption of the FY 2001/03 budget, it was realized that six carryover projects were not included in the addendum. Two of these projects have been awarded, and have signed contracts. Four Water Fund projects were also inadvertently omitted from the addendum. All projects were in the approved 2000/01 budget, and with the exception of the Central Library Roof Replacement, all are special funds and grants. Public Works Commission Review: The proposed budgets were presented as informational items on September 19, 2000. Environmental Status: Not applicable. Attachment(s): NumberCity Clerk's Page • Description 1. Proposed Sewer Service Budget 2. Proposed Capital Improvement Budget—Drainage Projects 3. Proposed Carryover Projects L.Daily:jm GAR C A\2001\01-136 Nov 5 Daily(Sewer Budget).doc -2- 10/25/01 4:19 PM ATTACHMENT # 1 Sewer Service Fund Proposed Budget FY 2001102 & 2002103 Obiect 00/01 01102 02103 51110 Salaries, Permanent $ 637,767 $ 632,184 $ 644,828 53020 Salaries, Overtime $ 65,696 $ 70,000 $ 75,000 55000 Benefits, Permanent $ 210,820 $ 232,819 $ 239,804 55175 Workers Comp. Additional $ 6,418 Yotal PeFsonalServices = $ 920;j,0'i $ =_ 935;003- $ _ 959632 , 61200 Electricity $ - $ 150,000 $ 150,000 61450 Telephone/Telemetry $ 1,100 $ 26,000 $ 26,000 63100 Supplies, General $ 16,000 $ 15,000 $ 15,000 63245 Supplies, Info. Systems $ 1,300 $ 2,500 $ 2,500 64005 Safety Supplies $ 5,400 $ 6,200 $ 6,200 64165 Clothing (Uniforms) $ 3,100 $ 3,500 $ 3,500 64355 Building Supplies $ 5,510 $ 5,000 $ 5,000 64570 Maint., Dept Equip $ 159,300 $ 250,000 $ 250,000 64620 Contractual Services $ 18,500 $ 300,000 $ 300,000 68550 Training $ 1,000 $ 1,000 $ 1,000 70200 Rentals, Equipment $ 1,200 $ 1,200 $ 1,200 Total Operating Expenses $ 212,41,0 $ 7601400' $ 760,400 82600 Improvements, Sewer $ - $ 1,050,000 $ 4,800,000 83700 Equipment, General $ 80,000 TitalCapitalxpensesm $ ` _8000{? $ 1050OOt7 $ 4800;000 Total Sewer Service Expenses $ 1,213,111 $ 2,745,403 $ 6,520,032 Expense Detail 64570 Maintenance, Dept Equipment Electrical maintenance $ 95,000 $ 95,000 Lift stations $ 150,000 $ 150,000 Building maintenance $ 5,000 $ 5,000 $ 250,000 $ 250,000 64620 Contract Maintenance Services Large diameter lines $ 65,000 $ 65,000 Lift stations $ 120,000 $ 120,000 Emergency repairs $ 115,000 $ 115,000 $ 300,000 $ 300,000 82600 Improvements, Sewer Design of Lift Stations (3) $ = $ 250,000 $ 500,000 Construction of Lift Station "D" $ 3,500,000 Sewer Lining $ 800,000 $ 800,000 $ 1,050,000 $ 4,800,000 10/22/01 Sewer Maintenance Budget Expenses Sewer Service Fund Proposed Budget FY 2001102 & 2002103 01/02 02/03 Revenue 47725 Customer Charges $ 4,600,000 $5,600,000 42960Interest $ 100,000 $ 80,000 49100 Trf from General Fund $ 700,000 $ 700,000 Total Revenue $ 5,400,000 $6,380,000 Balance Sheet 01102 02103 Beginning Balance $ - $2,154,597 Est. Revenue $ 5,400,000 $6,380,000 Est. Expenses $ 2,745,403 $6,520,032 Emergency Reserve $ 500,000 $ 500,000 Available Balance $ 2,154,597 $1,514,565 ATTACHMENT #2 Proposed Capital Projects Budget FY 2001102 8 2002103 Drainage Pump Station Projects 01102 02103 83700 Engine Replacements $ 250,000 $ 250,000 Obsolete engines (Slater#1 &Yorktown#2) 83800 Large Pump Replacements $ 228,000 $ 228,000 Replace unserviceable units (Atlanta#1 &Slater#2) 83700 Discharge Gates $ 90,000 $ 90,000 Leaking gates 83700 LPG Tank Replacements $ 50,000 $ 50,000 Replace outdated equipment 83700 Muffler Replacements $ 45,000 $ 45,000 83700 Stainless Steel Heat Exchangers $ 40,000 $ 40,000 Annual program 83800 Sump Pumps $ 5,500 $ 5,500 Worn pumps 83700 Chart Recorders $ 5,000 $ 5,000 Annual replacement program Total $ 713,500 $ 713,500 Sewer Maintenance Budget 10/22/01 CIP Drainage ATTACHMENT #3 Additional Carryover Project Budgets From FY 2000101 01102 General Fund 30187016.82200 Central Library Roof Replacement $ 327,800 Project awarded 9/4/01 Gas Tax& FHWA Grant 20790008.82300 Arterial Rehabiltiation $ 3,346,860 Project awarded 8/20/01 Water Fund CIP 50691003.69365 Telemetry 1.96,670 In progress 50691006.81000 Water Main Replacement 981,300 Project awarded 10/1/01 50691011.69365 Conjunctive Use Wells 878,000 In progress 50685015.82100 Chloramine Containment System 345,800 In progress Water Fund total 2,401,770 Total Carryover $ 6,076,430 RCA ROUTING S-HE-,ET -INITIATING.DEPARTMENT: Public Works SUBJECT: APPROVE SEWER AND CIP BUDGETS COUNCIL MEETING DATE: November 5,. 2001 ... ... . . _ _ _ ...... . ......... .. RCA A TACHI�A'ENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution- w/exhibits-& legislative draft if applicable Not A icable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City-Attorney)) Not Applicable- Subleases, Third Party Agreements, etc. (Approved as-to form.by City Attorne Not Applicable Certificates-of Insurance(Approved-by the-City-Attorr e Not Applicable- Financial Impact Statement Unbud et, over $5,000 Not Applicable- Bonds (If applicable) Not Applicable Staff Re ort If applicable) Attached Commission, Board or Committee Report (if applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable ... ........ ......___ EXPLANATION FOR MISSING ATTACHMENTS REVIEWED ...... . U .......... Administrative Staff Assistant City Administrator (initial)- City Administrator Initial 6z� rCity Clerk EXP!_ANAIOFR...R.... E. ..TURNO..F.... ITEMO .Space . Only) RCA Author_ L-Dally:jm x 5599. , i Sewer Charge & CIP Budgets z o � M Proposed Sewer Budget q D Revenue —! Expenditures Sewer Fund Revenue 01 02 02 03 (in millions) ■ Sewer Service Charge $4.6 $5.6 ■ From General Fund .7 .7 ■ Interest .1 .08 ■ Total $5.4 $6.38 2 November 5, 2001 , 1 Sewer Charge & CIP Budgets Proposed Sewer Expenses 0 07 02 03 (in thousands) Personnel $ 935 $960 Operating (Maintenance) 760 760 Capital Projects Line Repairs/slip-lining 800 800 Lift Station Design 250 500 Rebuild Lift Station "D" ----- 3,500 Emergency Reserve 500 500 Total $3,245 $7,020 3 = h M��`�. c7 _. c c� -J Proposed Capital Improvments Drainage Projects Revenue Expenditures i November 5, 2001 2 Sewer Charge & CIP Budgets Proposed Capital .Improvement ' Budget ■ General Fund Transfer of $713,931 ■ From former Sewer Maintenance in General Fund minus $700,000 ■ Directed to second highest priority infrastructure ■ Focuses on replacement of components in Drainage Pump Stations 5 -a Proposed Capital Improvement Drainage Pump Station Projects 01 02 02 03 (in thousands) Engine Replacements $250 $250 (Slater#1 & Yorktown#2) �j Large Pumps 228 228 (Atlanta #1 & Slater#2) Discharge Gates 90 90 �i LPG Tanks 50 50 Muffler Replacements 45 45 Stainless Steel Heat Exchangers 40 40 Sump Pumps & Chart Recorders 10.5 10.5 —� Total $713.5 $713.5 6 November 5, 2001 3 Sewer Charge & CIP Budgets Carryover Projects Approved 2000-01 —� ■ Arterial Rehabilitation $3,346,860 i ■ Central Library Roof $327,800 Replacement ■ Water Main Replacement 981,300 ■ Conjunctive Use Wells 878,000 ■ Chlorine Containment 345,800 ■ Telemetry System 196,670 ■ Total $6,076,430 7 November 5, 2001 4