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HomeMy WebLinkAboutItem No. 10 PPP 05-04-2022 Operations Committee - CIP FY22-23 23-24 Budget Update - REVISED5/4/2022 1 Capital Improvement Program (CIP)  Proposed Budget for FY2022‐23 & 23‐24 Presented by: Eros Yong  Engineering  Manager Operations  Committee  May 4, 2022 FY 2022‐23 & 23‐24  Budget 2 Board Presentations: February – Budget Assumptions, Insurance Overview March – Revenue, Reserves April –Operational Expenditures  May – Capital Improvement Program June –Board adopts FY 2022‐23 & 23‐24 Budget 1 2 5/4/2022 2 3 FY 2021-22 CIP Activities $202 million Planning 7% Design 34% Construction 59% New Design Contracts 10 Totaling $38 M New Construction Contracts 25 Totaling $100 M FY 2021‐22 CIP Performance Performance Measure Goal Performance  Projection Net CIP Outlay 85% ‐105% ($191M‐$236M) 90%  ($202M) Non‐Construction Cost (% of Construction Costs)< 37.5%35.0% Cumulative Change Order Rate < 5%5.8% 4 3 4 $202 million 5/4/2022 3 0 50 100 150 200 250 300 350 400 Mi l l i o n s Ref:  FY 2022‐23 & 23‐24 Budget, Section 4 5 10‐Year Net CIP Outlay: $3.08B 0 50 100 150 200 250 300 350 400 Mil l i o n s Projected FY 2022‐23 Proposed Net CIP Outlay FY2021‐22 Approved Net CIP Outlay Ref:  FY 2022‐23 & 23‐24 Budget, Section 4 6 10‐Year Net CIP Outlay: $3.08B 5 6 -Projected -FY 2022-23 Proposed Net CIP Outlay --..... 5/4/2022 4 0 50 100 150 200 250 300 350 400 Mi l l i o n s Projected FY 2022‐23 Proposed Net CIP Outlay FY2021‐22 Approved Net CIP Outlay Ref:  FY 2022‐23 & 23‐24 Budget, Section 4 7 10‐Year Net CIP Outlay: $3.08B $95M Decrease Over 5 Years $21M Decrease Over 10 Years 8 Total  CIP Budget Authority Ref:  FY 2021‐22 Budget, Appendix A & FY 2022‐23 & 23‐24 Budget, Section 8 Total CIP Budget Authority Budget FY 22‐23 Proposed Total CIP Budget Authority $4.289 billion  FY 21‐22 Approved Total CIP Budget Authority $4.254 billion Net Change $35 million (0.8%) 7 8 --..... 5/4/2022 5 9 Total  CIP Budget Authority Ref:  FY 2022‐23 & 23‐24 Budget, Section 8 Net Change $35 million Proposed New Projects $98 million  Proposed Project Budget Increases $261 million Proposed Project Budget Decreases ‐$133 million Proposed Project Cancellations/Closures ‐$192 million $359M ‐$324M 10 New Projects Ref:  FY 2022‐23 & 23‐24 Budget, Section 8 Project  No.Project Name Proposed Budget Start Date P1‐141 Administrative Facilities and Power Building 3A Demolition $8.9 M 2023 J‐137 120‐inch Ocean Outfall Rehabilitation $65 M 2023 P2‐140 Truck Loading Bay Odor Control Improvements at Plant No. 2 $7.6 M 2024 2‐78 Santa Ana Canyon South River Trunk Rehabilitation $16.3 M 2024 9 10 5/4/2022 6 11 Top  Budget Increases Ref:  FY 2022‐23 & 23‐24 Budget, Section 8 Project Proposed  Budget P2‐128 TPAD Digester Facility at Plant No.2 $475 M P2‐133 B/C‐Side Primary Sedimentation Basins Rehabilitation at Plant No. 2 $306 M P1‐126 Primary Sedimentation Basins No. 3‐5 Replacement at Plant No. 1 $183 M 5‐67 Bay Bridge Pump Station Replacement $106 M 3‐64 Rehabilitation of Western Regional Sewers $101 M J‐133 Laboratory Rehabilitation/Replacement at Plant No 1 $100 M Ref:  FY 2022‐23 & 23/24 Budget, Section 8 12 Top  Budget Decreases Project Proposed  Budget P2‐98 Primary Treatment Rehabilitation at Plant No. 2 $188 M P2‐138 Operations and Maintenance Complex at Plant No. 2 $84 M P2‐119 Central Generation Rehabilitation at Plant No. 2 $53 M P1‐127 Central Generation Rehabilitation at Plant No. 1 $33 M 11‐34 Slater Pump Station Rehabilitation $29 M 11 12 5/4/2022 7 0 50 100 150 200 250 300 350 400 Mi l l i o n s Projected FY 2022‐23 Proposed Net CIP Outlay Ref:  FY 2022‐23 & 23‐24 Budget, Section 4 13 10‐Year Net CIP Outlay: $3.08B 0 50 100 150 200 250 300 350 400 Mil l i o n s Projected FY 2022‐23 Proposed Net CIP Outlay Ref:  FY 2022‐23 & 23‐24 Budget, Section 4 14 10‐Year Net CIP Outlay: $3.08B $268 million 13 14 ■ ■ ■ ■ 5/4/2022 8 15 Projected FY 2022-23 Net CIP Outlay $268 million Planning 9% Design 11% Construction 80% Ref:  FY 2022‐23 & 23‐24 Budget, Section 8 Rehabilitation and  Replacement 68% Strategic  Initiatives 16% Additional Capacity 4% Regulatory 12% 0 50 100 150 200 250 300 350 400 FY 2 2 ‐23 FY 2 3 ‐24 FY 2 4 ‐25 FY 2 5 ‐26 FY 2 6 ‐27 FY 2 7 ‐28 FY 2 8 ‐29 FY 2 9 ‐30 FY 3 0 ‐31 FY 3 1 ‐32 FY 3 2 ‐33 FY 3 3 ‐34 FY 3 4 ‐35 FY 3 5 ‐36 FY 3 6 ‐37 FY 3 7 ‐38 FY 3 8 ‐39 FY 3 9 ‐40 FY 4 0 ‐41 FY 4 1 ‐42 Mi l l i o n s    ($ ) 16 20‐Year  Net CIP Outlay: $6 Billion Ref:  FY 2022‐23 & 23‐24 Budget, Section 4 10‐Year CIP 15 16 $268 Ilion 5/4/2022 9 0 50 100 150 200 250 300 350 400 FY 1 2 ‐13 FY 1 3 ‐14 FY 1 4 ‐15 FY 1 5 ‐16 FY 1 6 ‐17 FY 1 7 ‐18 FY 1 8 ‐19 FY 1 9 ‐20 FY 2 0 ‐21 FY 2 1 ‐22 FY 2 2 ‐23 FY 2 3 ‐24 FY 2 4 ‐25 FY 2 5 ‐26 FY 2 6 ‐27 FY 2 7 ‐28 FY 2 8 ‐29 FY 2 9 ‐30 FY 3 0 ‐31 FY 3 1 ‐32 FY 3 2 ‐33 FY 3 3 ‐34 FY 3 4 ‐35 FY 3 5 ‐36 FY 3 6 ‐37 FY 3 7 ‐38 FY 3 8 ‐39 FY 3 9 ‐40 FY 4 0 ‐41 FY 4 1 ‐42 Mi l l i o n s  ($ )   Actual Proposed Net CIP Outlay 17 Annual CIP Outlay –Next 20 Years Ref:  FY 2022‐23 & 23‐24 Budget, Section 4 18 Proposed Staff Positions  Construction Management Position FY 21‐22 FY 22‐23 Manager 1 1 Engineering Supervisor 2 3 Senior Engineer 3 4 Engineer 7 8 Associate Engineer 2 2 Inspection Supervisor 3 3 Senior Inspector 6 7 Inspector 11 14 Support Staff 3 3 Admin/Clerical 4 4 TOTAL 42 49 17 18 ■ ■ 11fttdtl 5/4/2022 10 19 Operating Expenses Grow with Inflation $0 $50 $100 $150 $200 $250 $300 $350 $400 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Expenditure Summary ($M) Operating CIP Debt Service/Other Budget Projected Proposed            Proposed 21‐22      21‐22 22‐23 23‐24 Salaries, Wages & Benefits $ 108.1 $ 106.9 $ 112.8 $ 118.1 Materials, Supplies & Services 97.6 98.3 109.1 113.1  Cost Allocation (21.7) (21.5) (20.8) (21.6) Net Operating Costs $ 184.0 $ 183.7 $ 201.1 $ 209.6 % Change from Projected                    9.5%          4.2% % Change from Budget 9.3% 4.2% SUMMARY 20 19 20 5/4/2022 11 EXPENSE OVERVIEW 21 Description 2021-22 Budget 2021-22 Projected 2022-23 Proposed % Change 2023-24 Proposed % Change Salaries, Wages & Benefits $ 108.1 $ 106.9 $ 112.8 5.5% $ 118.1 4.7% Repairs & Maintenance 29.7 34.8 32.1 -7.8% 33.8 5.3% Operating Materials & Supplies 22.0 21.8 24.3 11.5% 26.0 7.0% Contractual Services 19.1 17.6 20.1 14.2% 21.3 6.0% Utilities 9.3 10.9 12.8 17.4% 12.6 -1.6% Professional Services 6.9 5.2 7.8 50.0% 7.6 -2.6% Other 10.6 8.0 12.0 50.0% 11.8 -1.7% Total Non-Salary 97.6 98.3 109.1 11.0% 113.1 3.7% Total Before Allocation 205.7 205.2 221.9 8.1% 231.2 4.2% Cost Allocation (21.7) (21.5) (20.8) -3.3% (21.6) 3.8% Net Operating Requirements $ 184.0 $ 183.7 $ 201.1 9.5% $ 209.6 4.2% 2022-23 and 2023-24 Budget Development - Expense Summary (In Millions) Projected Rates Less than Projected Inflation 22 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Projected Rates Increases vs.  Historical Inflation OC San Inflation 21 22 5/4/2022 12 23 Rates Questions ? 24 23 24 Los Angel es County CityofFresno Irvine Ranch Water District Oro Lom.i Sanit.iry District Orange County Sanitation District Or.inge Countv Sanit.ition District SacramentoCOIXlty Cityof Hayward East Bay MUD Dl.OlinSanl\.imonServicesOistrict Union Sanitary District CityofS.anDiego City of Los Angeles Centr.il Contra Cos1.i Sari1.iry District Vallejo Sanitation/Rood Control District San Francisco s- Annual Single Family Residential Rates (July 2021) , , .. FY 2027-28 S200 S400 S600 S800 $1,000 $1,200 $1,400