HomeMy WebLinkAboutItem 6 - 2022-23 Whale Rock Reservoir BudgetWhale Rock Commission Report
Whale Rock Commission Meeting – April 21, 2022
Agenda Item 6 – 2022-23 Whale Rock Reservoir Budget
FROM: Aaron Floyd, Utilities Director
PREPARED BY: Mychal Boerman, Utilities Deputy Director - Water
SUBJECT: 2022-23 Whale Rock Reservoir Budget
RECOMMENDATION
Adopt the 2022-23 Whale Rock Reservoir Budget.
DISCUSSION
The Whale Rock Commission considers the Operating, Salary and Benefits, Capital, and
Electrical Pumping Budgets for Whale Rock Reservoir on an annual basis and approves the
budgets during its annual commission meeting. Details regarding budgetary requests for 2022-
23 are discussed below.
Staffing and Operating Budget
The proposed 2022-23 budget for operation of the Whale Rock Reservoir includes ongoing
maintenance and upkeep of Whale Rock facilities and includes costs for maintenance and
operation of the dam, spillway, intake structure, transmission pipeline, and pump stations. The
budget also includes costs associated with maintenance and upkeep of public access and
recreation areas, the dam keeper shop and residence, and tools and equipment required for
daily work. General Government expenses found within the Operating Budget fund support
services that are provided by the City’s internal support departments such as Human
Resources, Finance, City Clerk’s Office, and City Attorney’s Office.
The City recently completed a compensation study for all City of San Luis Obispo employees
which documented that salaries and benefits need to be increased for Whale Rock to remain
competitive when recruiting and retaining employees. Preliminary estimates for compensation
increases have been incorporated into the 2022-23 Salary and Benefits budgets. While actual
increases will be dependent upon bargaining group negotiations, staff updated the Salaries and
Benefits budget to account for this uncertainty.
Table 1 and Table 2 below present the Operating and Salaries and Benefits budgets proposed
for Whale Rock Reservoir for fiscal year 2022-23.
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Table 1 - Operating Budget
Budget Category Adopted 2021-22
Budget
Proposed 2022-23
Budget
Contract Services $120,796 $143,296
Data Processing Services $7,800 $7,800
Maintenance $6,800 $8,200
Legal Services $5,000 $5,000
Office Supplies $2,500 $2,500
Employee and Volunteer
Recognition
$500 $500
Membership and Certifications $1,504 $1,471
Education and Training $9,080 $8,900
Trips and Meetings $1,500 $1,500
Office and Facility Electricity $7,000 $8,400
Agency Pumping Expenses $299,608 $365,400
Communication Service (Radio,
Cell, Fiber)
$12,080 $12,080
Solid Waste Service $1,700 $1,900
Construction Materials and
Supplies
$5,800 $5,800
Equipment Maintenance Supplies $4,100 $4,300
Chemicals $400 $400
Miscellaneous Materials and
Supplies
$18,800 $18,420
Safety Materials and Supplies $2,304 $2,272
Machinery and Equipment $20,000 $20,000
General Government $187,511 $190,202
Total $714,783 $808,341
Table 2 – Salaries and Benefits Budget
Budget Category Adopted 2021-22
Budget
Proposed 2022-23
Budget
Salaries $400,172 $462,648
Benefits $206,100 $228,335
Total $606,272 $690,983
Capital Projects Capital Improvement Project Funding Request
To reduce large fluctuations in CIP budget requests on a year over year basis, Whale Rock
participants have opted to contribute to projects over multiple years in advance of project
delivery. For instance, the total cost for a project to rehabilitate Pump Station A and Pump
Station B is estimated at $1,960,620. Whale Rock Commission member agencies have elected
to pay between $180,000 and $221,377 per year over a ten-year period from 2015-16 through
2024-25 to fund this project. This payment is referred to as a payment to “CIP Reserves”. In
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some cases, projects are not able to be funded in advance and must be fully funded by Whale
Rock Participants in the year they are anticipated to be constructed, these projects are
generally the result of emerging regulations or unanticipated equipment failure that requires
immediate action. Tables 3-5 below categorize CIP investments into three major categories
related to Infrastructure Projects, IT Projects, and Fleet Purchases. Table 6 provides the total
CIP contribution being requested in the 2022-23 Whale Rock Budget, including Cal Poly’s
annual “Reserves Catch-Up” payment.
Table 3 - Infrastructure Projects
Project Name Project
Delivery Year
Total Project
Budget
2022-23
Contribution
Valve Replacement 2027-28 $400,000 $25,085
Shop Pavement Replacement 2029-30 $50,000 $5,000
Shop and Residence Reroof 2022-23 $35,000 $11,600
Transmission Pipeline Repair
(Pre-Calibration)1
2022-23 $510,000 $146,600
Transmission Pipeline Repair
Design (Post-Calibration)
2025-26 $60,000 $15,000
Transmission Pipeline
Reinspection
2027-28 $550,000 $53,616
Pump Station Rehabilitation 2024-25 $1,926,620 $208,669
Closed Tube Piezometer
Replacement
2024-25 $108,923 $11,593
Evaporation and Weather
Station Replacement
2025-26 $25,398 $2,898
Stilling Basin Cleaning 2022-23 $150,000 $150,000
Cityworks Integration 2022-23 $10,000 $10,000
Fencing Replacement 2022-23 $20,000 $20,000
Total 2022-23 Infrastructure Projects CIP $660,061
Table 4 - IT Projects
Project Name Project
Delivery Year
Total Project
Budget
2022-23
Contribution
Wireless System Upgrade
(IT)
2022-23 $1,121 $1,121
Total 2022-23 IT Projects CIP $1,121
1 The Transmission Pipeline Repair Project is an ongoing work effort that consists of multiple stages of
analysis and repair. Pre-Calibration repair funding will be utilized to remove approximately 200 feet of Whale
Rock Pipeline. Removed pipeline will be analyzed and used to update the Whale Rock Pipeline Condition
Analysis model. Funding for Post-Calibration design will be utilized to fund designs for any repairs that are
necessary if model recalibration results in the need to remove additional pipe.
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Table 5 - Fleet Purchases
Project Name Project
Delivery Year
Total Project
Budget
2022-23
Contribution
F150 4x4 Pickup
(Replacement)
2025-26 $34,593 $3,594
4x4 ¾ Ton Truck with Utility
Box & Crane (Replacement)
2025-26 $75,000 $6,956
4x4 SUV/Jeep (Replacement 2025-26 $60,000 $15,000
John Deere Tractor
(Replacement)
2023-24 $75,000 $12,000
Equipment Trailer
(Replacement)
2022-23 $15,000 $15,000
Dump Trailer (New) 2022-23 $20,000 $20,000
Total 2022-23 Fleet Purchases CIP $72,550
Table 6 – Total Proposed CIP Contribution
Total 2022-23 Infrastructure Projects Contribution $660,061
Total 2022-23 IT Projects Contribution $1,121
Total 2022-23 Fleet Contribution $72,550
Cal Poly CIP Reserve Catch Up2 $76,579
Total 2022-23 Proposed CIP $810,311
Electrical Pumping Charges
Pacific Gas and Electric (PG&E) rates were raised two times during FY 21-22 and are
anticipated to be increased again during the second quarter of FY 2022-23. The cumulative
impact of these rate increases is approximately 20%. Whale Rock staff have proposed 20%
increases to electricity budgets for each participant. Electrical Pumping Charges are passed
directly from the City to member agencies, based on proportional water received, as bills are
received from PG&E, and are not collected by the City in advance of use. However, member
agencies are recommended to allocate funding in their agency budgets to accommodate
electrical expenses, as outlined below.
Table 7 - 2022-23 Electricity/Pumping Billing Allocations
Agency Estimated Electrical Billings
City of San Luis Obispo $127,200
Cal Poly $165,600
California Men’s Colony incl. DCGC $72,600
Total $365,400
2 Cal Poly began making contributions to CIP Reserves in 2020 -21 and makes additional contributions
annually to “catch up” on projects where Reserve Contributions were not made between 2015 -16 and 2020-21.
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Member Agency Contribution Allocations
Projected Whale Rock Commission member contributions for the 2022-23 budget are
calculated by totaling all projected Whale Rock expenditures and subtracting revenues the
Commission anticipates collecting through pumping charges, investment income, day use
fees, and other revenue sources. Total expenditure and revenue projections for FY 2022-23
can be seen in Table 8 and Table 9 below. The total budgetary request for all member agencies
can be seen in Table 10, with an agency-by-agency break-down provided in Table 11.
Table 10 – 2022-23 Whale Rock Budget Request
Expenditures (Table 8) $2,309,635
Revenues (Table 9) ($372,400)
2022-23 Contribution Request $1,937,235
Table 8 – 2022-23 Whale Expenditure Projections
Expenditure Category Amount
Operating (Table 1) $808,341
Salaries and Benefits (Table 2) $690,983
Capital Improvements (Table 6) $810,311
Total $2,309,635
Table 9 – 2022-23 Whale Rock Revenue Projections
Revenue Category Amount
Whale Rock Pumping Charges $365,400
Investment Income $1,000
Other Revenue $6,000
Total $372,400
Table 11 – Member Agency Allocations
2020-21 2021-22 2022-23
Adopted
Budget
Adopted
Budget
Proposed
Budget
City of San Luis Obispo (55.05%)
O&M Allocation $ 559,092 $ 522,494 $ 620,372
CIP Contribution-Actual $ 83,676 $ 460,966 $ 206,064
CIP Contribution-Reserve $ 362,977 $ 268,362 $ 197,856
Total Annual Contribution $ 1,005,745 $ 1,251,822 $1,024,291
Cal Poly State University (33.71%)
O&M Allocation $ 342,361 $ 319,950 $ 379,886
CIP Contribution-Actual $ 51,239 $ 282,273 $ 126,184
CIP Contribution-Reserve $ 222,270 $ 164,332 $ 121,157
Additional Catch-Up Reserve $ 76,579 $ 76,579 $ 76,579
Item 6
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action, because
the action does not constitute a “Project” under CEQA Guidelines Sec. 15278.
ALTERNATIVE
The Whale Rock Commission members may elect not to approve the budget as proposed or
may elect to modify elements of the proposed budget. This alternative is not recommended
as the proposed budget allocates funding for staffing, electrical costs, Capital Improvement
Projects, and costs for other essential functions related to the safety of Whale Rock Reservoir
and delivery of raw water from the reservoir for basic health and safety needs.
ATTACHMENT
1.Whale Rock Fund Analysis
Total Annual Contribution $ 692,449 $ 843,135 $ 703,806
California Men's Colony (11.24%)
O&M Allocation $ 114,154 $ 106,682 $ 126,666
CIP Contribution-Actual $ 17,085 $ 94,119 $ 42,074
CIP Contribution-Reserve $ 74,112 $ 54,793 $ 40,398
Total Annual Contribution $ 205,351 $255,594 $209,138
Total Member Contribution $ 1,903,545 $ 2,350,551 $ 1,937,235
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CHANGES IN FINANCIAL POSITION ‐ WR
2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 2029‐30 2030‐31
Link to Backup Info Actuals Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget
REVENUES BY TYPE
Member Agency Contribution 1,015,607$ 949,126$ 1,126,924$ 1,131,908$ 1,143,832$ 1,158,429$ 1,170,234$ 1,181,925$ 1,193,484$ 1,204,892$ 1,216,129$
Member Agency CIP (Actual + Reserve)887,938$ 1,401,425$ 810,311$ 604,716$ 597,724$ 289,841$ 242,401$ 149,365$ 25,000$ 25,000$ 20,000$
Water Distribution Revenue 248,469$ 299,608$ 365,400$ 380,016$ 395,217$ 411,025$ 427,466$ 444,565$ 462,348$ 480,841$ 500,075$
Investment & Property Revenue 818$ 58,713$ #1,000$ #1,000$ #1,000$ 1,000$ #1,000$ #1,000$ 1,000$ 1,000$ 1,000$
Other Revenue 8,662$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$
TOTAL 2,161,494$ 2,714,871$ 2,309,635$ 2,123,640$ 2,143,772$ 1,866,295$ 1,847,101$ 1,782,855$ 1,687,831$ 1,717,733$ 1,743,204$
EXPENDITURE BY CATEGORY
Salaries & Benefits 545,122$ 606,272$ 690,983$ 697,507$ 711,340$ 728,236$ 742,749$ 757,580$ 772,733$ 788,212$ 804,023$
Operating Expenditures 414,989$ 519,664$ 618,139$ 627,411$ 636,822$ 646,375$ 656,070$ 665,911$ 675,900$ 686,038$ 696,329$
Capital Outlay 168,553$ 1,716,683$ 761,121$ 118,515$ 2,112,436$ 285,094$ 577,500$ 773,000$ 20,000$ 70,000$ 20,000$
Transfers Out 183,978$ 187,511$ 190,202$ 194,006$ 197,886$ 201,844$ 205,881$ 209,998$ 214,198$ 218,482$ 222,852$
TOTAL 1,312,642$ 3,030,129$ 2,260,445$ 1,637,439$ 3,658,485$ 1,861,548$ 2,182,200$ 2,406,490$ 1,682,831$ 1,762,733$ 1,743,204$
EXPENDITURE BY FUNCTION
General Government 183,978$ 187,511$ 190,202$ 194,006$ 197,886$ 201,844$ 205,881$ 209,998$ 214,198$ 218,482$ 222,852$
Reservoir Operation 1,128,664$ 2,101,824$ 2,070,243$ 1,443,433$ 3,460,598$ 1,659,704$ 1,976,320$ 2,196,492$ 1,468,633$ 1,544,251$ 1,520,352$
TOTAL 1,312,642$ 2,289,335$ 2,260,445$ 1,637,439$ 3,658,485$ 1,861,548$ 2,182,200$ 2,406,490$ 1,682,831$ 1,762,733$ 1,743,204$
CHANGES IN FINANCIAL POSITION
Working Capital ‐ Beginning 2,376,938$ 3,225,851$ 3,542,159$ 3,569,931$ 4,034,715$ 2,498,586$ 2,481,915$ 2,125,399$ 1,480,347$ 1,463,930$ 1,397,513$
Revenues over (under) Expenditure 848,852$ 425,537$ 49,190$ 486,201$ (1,514,712)$ 4,747$ (335,099)$ (623,635)$ 5,000$ (45,000)$ ‐$
Working Capital ‐ Year End (before CalPers Down Payment)3,225,790$ 3,651,388$ 3,591,348$ 4,056,132$ 2,520,003$ 2,503,332$ 2,146,816$ 1,501,764$ 1,485,347$ 1,418,930$ 1,397,513$
CalPers Down Payment ‐$ 109,229$ 21,417$ 21,417$ 21,417$ 21,417$ 21,417$ 21,417$ 21,417$ 21,417$ 21,417$
Working Capital ‐ Year End 3,225,790$ 3,542,159$ 3,569,931$ 4,034,715$ 2,498,586$ 2,481,915$ 2,125,399$ 1,480,347$ 1,463,930$ 1,397,513$ 1,376,096$
Operating Reserve (20%)228,818$ 262,689$ 299,865$ 303,785$ 309,210$ 315,291$ 320,940$ 326,698$ 332,566$ 338,547$ 344,641$
Capital Outlay Reserve Balance 1,587,581$ 1,906,648$ 1,955,837$ 2,457,038$ 956,917$ 969,567$ 634,468$ 95,000$ 100,000$ 55,000$ 55,000$
UFL Trust Fund ‐$ 21,417$ 22,620$ 37,700$ 37,700$ 37,700$ 37,700$ 37,700$ 37,700$ 37,700$ 37,700$
Unreserved Working Capital ‐ Year End 1,409,391$ 1,351,404$ 1,291,609$ 1,236,192$ 1,194,759$ 1,159,357$ 1,132,291$ 1,020,949$ 993,663$ 966,266$ 938,755$
Item 6 - Attachment 1Item 6