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Home My WebLink About96.PPP CIP Budget UpdateTWO-YEAR BUDGET UPDATE Capital Improvement Program (CIP) FY 2015-16 Rob Thompson, Director of Engineering Administration Committee, May 13, 2015 Annual Budget Update Process OCSD Resources Cash Flow Analysis Risks & Impacts to OCSD Rates New Information ProposedCIPAnalysisCurrentCIP Drivers for New CIP Projects Capacity Condition of Assets Level of Service Regulatory Change Condition Assessment Program Top Budget Increases Project Proposed Budget P1-105 Headworks Rehabilitation and Expansion at Plant 1 $235,273,000 P2-98 Plant No.2 Primary Treatment System Rehabilitation $156,029,000 3-60 Beach Trunk/Knott Interceptor Sewer Relief (FY22-23)$118,678,000 P1-114 Primary Scrubber Rehabilitation Project at Plant 1 (FY17-18)$94,228,000 J-124 Digester Gas Facilities Rehabilitation (FY16-17)$85,870,000 J-117 Ocean Outfall System Rehabilitation $76,000,000 Top Budget Decreases Project Proposed Budget 5-67 Bay Bridge Pump Station Reconstruction $51,010,000 SP-34 Ongoing Small Capital Replacement/Rehabilitation $21,672,000 11-34 Slater Avenue Pump Station Rehabilitation $9,729,000 11-33 Edinger Pumping Station Upgrade and Rehabilitation $8,880,000 1-101 Raitt and Bristol Street Sewer Extension $5,319,000 Top Project Cancellations/Closed Project Budget P1-120 Headworks Expansion $222,804,000 J-116 66-inch Interplant Effluent Pipeline Rehabilitation $72,517,000 P2-114 Plant No. 2 Solids Storage Addition $37,604,000 P2-111 SCE Feed Reliability Improvements $22,490,000 3-59 Miller-Holder Trunk Sewer Relief $17,324,000 Closed Projects with Unspent Budget $6,453,797* * Unspent budget New Projects Project Proposed Budget P1-126 Plant No. 1 Primary Clarifiers Replacements and Upgrades (FY17-18)$122,649,000 P2-119 Plant No. 2 Cen Gen Rehabilitation (FY20-21)$41,909,000 P1-127 Plant No. 1 Cen Gen Rehabilitation (FY20-21)$35,647,000 Planning Studies (FY15-16)$11,803,000 P2-118 Plant No. 2 Activated Sludge Rehabilitation (FY15-16)$6,679,000 J-126 Plant Nos. 1 and 2 Safety Improvement (FY15-16)$1,708,000 J-127 Plant Nos. 1 and 2 Natural Gas Line (FY15-16)$1,310,000 Planning $5 Million 10 Projects Design $43 Million 17 Projects Construction $134 Million 37 Projects FY15-16 CIP Budget $182 Million, 64 Active Projects SP-137 Primary Treatment Area Rehabilitation Study Reclamation Plant No. 1 P1-105 Headworks Rehabilitation and Expansion P1-101 Sludge Dewatering and Odor Control P1-123 Trunk Line Odor Control Improvements P1-124 Primary Treatment Upgrades P1-100 Digester Rehabilitation Treatment Plant No. 2 P2-98 Primary Treatment P2-118 Activated Sludge Aeration Basin Deck Repair Biosolids Master Plan P2-92 Sludge Dewatering and Odor Control J-117 Ocean Outfall System Rehabilitation P2-89 Solids Thickening and Processing Upgrades P2-110 Consolidated Demo and Utility Improvements 3-64 Rehabilitation of Western Regional Sewers SP-178 Bay Bridge PS and Forcemain Rehab Study Edinger PS Rehab Study Main St PS Rehab Study Slater PS Rehab Study Collections System 3-62 Seal Beach PS Rehab 5-60 Newport Force Main Rehab 2-72 Newhope-Placentia Trunk Replacement Crystal Cove PS Rehab Study 6-17 District 6 Trunk Sewer Relief 6-19 Southwest Costa Mesa Trunk 7-37 Gisler –Red Hill Trunk Improvements 1-17 Santa Ana Trunk Rehabilitation $- $50 $100 $150 $200 $250 $300 $350 Mi l l i o n s Actuals Budgeted Projects Repl., Rehab & Refurb FY14-15 Budget Proposed 10-Year CIP Spending Proposed 10-Year CIP Spending 5% Decrease CIP + RRR FY14-15 Adopted Budget $2,303,900,000 FY15-16 Proposed Budget $2,182,300,000 Variance ($121,600,000) Questions? Budget Book –Section 4 Cash Flow Proposed 10-Year CIP Spending Decreased 5% Line 12 Line 12 & 13 FY14-15 Adopted Budget $1,584,956,175 $2,303,900,000 FY15-16 Proposed Budget $1,639,511,302 $2,182,300,000 CIP Spending $54,555,127 $(121,600,000) FY14-15 to FY23-24 Proposed 10-Year CIP Spending Line 12 Line 12 & 13 FY14-15 Adopted Budget $1,458,328,311 $2,266,125,034 FY15-16 Proposed Budget $1,704,460,485 $2,301,439,074 CIP Spending $246,132,174 $75,314,040 FY15-16 to FY24-25 FY15-16 Validation Effort CIP Project Budget Increases $670,148,800 Budget Reductions/Cancelations $(403,283,451) Overall CIP Change from FY14-15 $266,865,349 Total FY34-35 $2,444,045,020 Validation Summary by Category Category Count Amount Budget Increases 49 $515,012,000 New Projects 7 $221,705,000 Budget Reductions 28 $(66,568,000) Project Cancellations/Closed 41 $(396,830,000) Total $266,865,000 FY15-16 CIP Budget FY 14-15/15-16 Budget Book $180,337,380 FY 15-16 Budget Update $181,912,479 Overall CIP Change $1,575,099 Important Capital Budget Definitions Section 4 Cash Flow Projections: Staff’s best estimate of funding requirements for the next 10 years, assumes some contingency will not be spent. Very useful for rate analysis. •Line 12 defined and approved projects •Line 13 anticipated improvements not fully scoped or scheduled (Asset Model and Engineering Planning) Section 8 CIP Budget Authority: A listing of individual projects with scopes of work, schedules, and budget authority approval. Some projects beyond 10 year horizon and include full appropriate contingency to complete the necessary work. Budget Book –Section 8 CIP Budget Authority Focus on proper scope and risk definition for project before design or construction begins. •Focus on combining like work to minimize coordination and operational constraints •Big allocations from Line 13 to 12 naturally occur in planning before contracts are advertised. closed Closed Projects with Remaining Budget Project Current Budget EAC Variance 2-41-7 $1,217,000 $633,629 $583,371 3-58 $19,812,000 $19,649,152 $162,848 5-47 $8,122,000 $6,842,250 $1,279,750 J-112 $20,466,000 $19,672,140 $793,860 J-123 $2,687,000 $2,598,901 $88,099 J-36-1 $387,000 $362,126 $24,874 P1-102 $255,831,000 $255,339,721 $491,279 P2-66 $258,724,000 $258,184,458 $539,542 SP-141 $762,900 $750,000 $12,900 SP-180 $1,000,000 $545,000 $455,000 SP-68-2 $4,800,000 $2,777,726 $2,022,274