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Home My WebLink AboutItem No. 7 PPP 05-11-2022 Administration Committee - CIP FY22-23_23-24 Budget Update - REVISED5/10/2022 1 Capital Improvement Program (CIP) Proposed Budget for FY2022‐23 & 23‐24 Presented by: Eros Yong Engineering Manager Administration Committee May 11, 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 5/10/2022 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 5/10/2022 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 --..... 5/10/2022 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 --..... 5/10/2022 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 5/10/2022 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 P2‐138 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 12 5/10/2022 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 ■ ■ ■ ■ 5/10/2022 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 $268 Ilion 5/10/2022 9 0 50 100 150 200 250 300 350 400 FY 1 2 ‐13 FY 1 3 ‐14 FY 1 4 ‐15 FY 1 5 ‐16 FY 1 6 ‐17 FY 1 7 ‐18 FY 1 8 ‐19 FY 1 9 ‐20 FY 2 0 ‐21 FY 2 1 ‐22 FY 2 2 ‐23 FY 2 3 ‐24 FY 2 4 ‐25 FY 2 5 ‐26 FY 2 6 ‐27 FY 2 7 ‐28 FY 2 8 ‐29 FY 2 9 ‐30 FY 3 0 ‐31 FY 3 1 ‐32 FY 3 2 ‐33 FY 3 3 ‐34 FY 3 4 ‐35 FY 3 5 ‐36 FY 3 6 ‐37 FY 3 7 ‐38 FY 3 8 ‐39 FY 3 9 ‐40 FY 4 0 ‐41 FY 4 1 ‐42 Mi l l i o n s ($ ) 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 5/10/2022 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 5/10/2022 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 Equal Historical Inflation 22 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Projected Rates Increases vs. Historical Inflation OC San Inflation 21 22 5/10/2022 12 23 Rates ** FY 2027-28 Questions ? 24 23 24 LA County Fresno IRVVD Oro Loma OCSan OCSan Sacramento Hayward East Bay MUD Dublin Union San Dego LA City Contra Costa Vallejo San Francisco $- Annual Single Family Residential Rates (July 2021) $226 $200 $309 $313 $318 $343 $412 $444 $446 $457 $486 $524 $573 $400 $600 $636 $660 $747 $800 $1,000 $1,200 $1,270 $1,400