HomeMy WebLinkAbout4/16/2019 Item 13, Elke
Council Agenda Correspondence
City of San Luis Obispo, Council Memorandum
DATE: April 16, 2019
TO: City Council
FROM: Brigitte Elke, Finance Director
VIA: Derek Johnson, City Manager DJ
SUBJECT: Enterprise Funds – Significant Operating Budget Changes
Attached please find the individual write-ups for the Parking, Sewer, and Water Funds’ significant
operating budget changes to provide additional information on the requests that will be
incorporated in the fund reviews for each fund on June 4, 2019. The summaries for the requests
are referenced in the agenda package for April 16, 2019, pages 116 through 119. Additional review
of the Water and Sewer Fund tables in the Council Agenda Report incorrectly characterized one-
time and ongoing costs. The tables below reflect corrected information.
Table 1. Parking Fund
One-Time Ongoing
Page no.
Significant Operating Budget Changes
2019-20 2020-21 2019-20 2020-21
$26,000 $26,000
1 Parking Structure Cleaning 1
$30,000 $30,000
2 Augmentation of Rideshare 3
$60,000 $60,000
3 Parking Lot & Structure Security 5
$116,000 $116,000
Parking Fund
Table 2. Sewer Fund
One-Time Ongoing
Page no.
Significant Operating Budget Changes
2019-20 2020-21 2019-20 2020-21
$35,000 $19,225 $19,255
1 WRRF Maintenance 7
$8,000 $4,083 $4,083
2 SCADA System 9
$8,750
3 Education & Training 11
$10,000 $90,000
4 Electric Service - WRRF 13
$22,500 $22,500
5 Various Studies 15
$12,470 $12,470
6 Association Fees 17
$13,000
7 Overtime 19
$10,600
8 Regulatory Fee 21
$113,175
9 Chemicals 23
$51,750 $126,175 $68,278 $158,908
Sewer Fund Subtotal
Enterprise Funds – Significant Operating Budget Changes Page 2
Table 3. Water Fund
One-Time Ongoing Page
no.
Significant Operating Budget Changes
2020-21
2019-20 2019-20 2020-21
$255,500
1 Nacimiento Operating Expenses 25
$1,750,000 $142,000 $142,000
2 Salinas Reservoir – Pipeline Repair 27
Electric Service – Water
3 29
Distribution $9,000 $9,000
$25,000
4 Machinery & Equipment 31
$102,620 $102,620
5 Treatment – TTHM 33
$40,895 $41,391
6 Chemicals 35
$10,000 $10,000
7 Water Treatment Plant Equipment 37
Electric Service – Water Treatment
8 39
Plant $13,000 $13,000
$42,000 $42,000
9 Water Treatment Plant Overtime 41
$37,550 $37,550
10 Various Studies 43
$2,082,500 $52,000 $345,065 $345,561
Water Fund Subtotal
Table 4. Whale Rock Fund
One-Time Ongoing
Page no.
Significant Operating Budget Changes
2019-20 2020-21 2019-20 2020-21
$28,400 $28,400
1 SWRCB Permit Fees 45
$13,900 $8,900
2 Electric Service Whale Rock 47
$42,300 $37,300
Whale Rock Fund Subtotal
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: Augment Parking Structure Cleaning Services
Function Program
20 - Infrastructure & Transportation 50600 - Parking Operations/Maint.
SUMMARY OF CHANGE
Enhanced Parking Structure Cleaning Services -to Include semi-annual "Deep" Cleaning of
parking Structures to address human waste issues and anti-social behaviors.
FISCAL IMPACT
Increase in 610.5101.61013 Parking Contract Services
FY 2019-20 $26,000
FY 2020-21 $26,000
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 510 7227 26,000 26,000
Sub-Total: 2020 26,000 26,000
2021 510 7227 26,000 26,000
Sub-Total: 2021 26,000 26,000
Total 52,000 52,000
SERVICE LEVEL IMPACT
Incremental staff resource needed to coordinate programs and agreements; .2 FTE existing.
Increased contract costs and late night monitoring of services.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Significant increase in incidences of antisocial activities within the parking structures of
Downtown that include vandalism, arson, drug use, public intoxication, urinations and
defecations. Current cleaning efforts have not been able to reduce or eliminate the stench,
appearance and negative public reaction to the horrific encounters of stench and stains.
1
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: Augment Parking Structure Cleaning Services
Key Objectives: Making the Change Happen
Improve appearances and positive smells in problematic locations to reduce public complaints
and City appearance. Will coincide with additional security efforts to hopefully abate current
problems and address public concerns.
Goal & Policy Criteria
Downtown Vitality – Support the economic and cultural heart of the City with attention to
safety, maintenance, infrastructure and amenities.
Major City Goal or Other Important Objective Addressed
Downtown Vitality
STAKEHOLDERS
Public Works Department – Parking Services, Building Maintenance
IMPLEMENTATION
Program Manager
Public Works – Parking Services Supervisor
Project Team
DDPW/Parking Manager; Parking Services Supervisor
Implementation Plan
Summer-2019: discuss potential contract options with current security company. If necessary,
prepare RFP for solicitation of services.
2
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: Augmentation of Rideshare & Parking Demand Reduction Programs
Function Program
20 - Infrastructure & Transportation 50600 - Parking Operations/Maintenance.
SUMMARY OF CHANGE
Augmentation of Rideshare & Parking Demand Reduction Programs - Contract with Regional
Rideshare or others to promote reductions in parking demand and automotive congestion in
the Downtown and surrounding areas to increase car free and car share activities pursuant to
MCG.
FISCAL IMPACT
Increase in 610.5101.61013 Parking Contract Services
FY 2019-20 $30,000
FY 2020-21 $30,000
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 510 7227 30,000 30,000
Sub-Total: 2020 30,000 30,000
2021 510 7227 30,000 30,000
Sub-Total: 2021 30,000 30,000
Total 60,000 60,000
SERVICE LEVEL IMPACT
Incremental staff resource needed to coordinate programs and agreements; .1 FTE existing
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Major Council Goal for Sustainable Transportation and Downtown Vitality.
Key Objectives: Making the Change Happen
Reduce single occupant automobile trips to the Downtown and other areas of the City to
reduce congestion and parking demands. Improve programs that support car free and car
sharing efforts.
3
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: Augmentation of Rideshare & Parking Demand Reduction Programs
Goal & Policy Criteria
Circulation Element Objectives:
1.7.3.1 Encourage Better Transportation Habits - Increase the use of alternative forms of
transportation (as shown on Table 1) and depend less on the single‐occupant use of vehicles.
1.7.2.4 Promote Alternative Forms of Transportation - Support and develop education
programs directed at promoting types of transportation other than the single‐occupant vehicle
1.7.3.1 Manage Traffic - Support county‐wide programs that manage population growth to
minimize county‐wide travel demand
1.7.3.1 Manage Traffic - Support county‐wide programs that support modal shift while utilizing
our existing road system and reducing air pollution and traffic congestion.
Circulation Element Policy:
2.1.2.1.1 Multi-level Programs - The City shall support county‐wide and community‐based
efforts aimed at substantially reducing the number of vehicle trips and parking demand.
2.12.1.4. Downtown Congestion Within the Downtown the City shall establish and promote
programs aimed at reducing congestion in a way that supports the long‐term economic
viability of the downtown
Major City Goal or Other Important Objective Addressed
Sustainable Transportation; Downtown Vitality; Climate Action Plan
STAKEHOLDERS
Public Works Department – Parking Services, Transit and Transportation; Regional Rideshare;
Ride and others.
IMPLEMENTATION
Program Manager
Deputy Director of Public Works/Parking Manager
Project Team
DDPW/Parking Manager; DDPW; Active Transportation Manager; Transit Manager
Implementation Plan
Summer- Fall 2019: prepare program outline and establish goals and objectives.
Fall 2019: negotiate contracts with regional partners and/or circulate RFP for services.
4
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: Parking Structure and Lot Security Services Enhancements
Function Program
20 - Infrastructure & Transportation 50600 - Parking Operations/Maintenance
SUMMARY OF CHANGE
Augment overnight security services contract to reduce incidences of vandalism, damage, and
anti-social behavior. Security may also serve the purpose of addressing parking equipment
issues when they are operated 24 Hours per day.
FISCAL IMPACT
Increase in 610.5101.61013 Parking Contract Services
FY 2019-20 $60,000
FY 2020-21 $60,000
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 510 7227 60,000 60,000
Sub-Total: 2020 60,000 60,000
2021 510 7227 60,000 60,000
Sub-Total: 2021 60,000 60,000
Total 120,000 120,000
SERVICE LEVEL IMPACT
Incremental staff resource needed to coordinate programs and agreements; .2 FTE existing.
Increased contract costs and late night monitoring of services.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Significant increase in incidences of antisocial activities within the parking structures of
Downtown that include vandalism, arson, drug use, public intoxication, urinations and
defecations.
5
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: Parking Structure and Lot Security Services Enhancements
Key Objectives: Making the Change Happen
Reduce incidences of vandalism, damage, and anti-social behavior within the parking
structures and other parking lot locations during overnight periods.
Goal & Policy Criteria
Downtown Vitality – Support the economic and cultural heart of the City with attention to
safety, maintenance, infrastructure and amenities.
Major City Goal or Other Important Objective Addressed
Downtown Vitality
STAKEHOLDERS
Public Works Department – Parking Services, Police Department
IMPLEMENTATION
Program Manager
Public Works – Parking Services Supervisor
Project Team
DDPW/Parking Manager; Parking Services Supervisor, Police Watch Command
Implementation Plan
Summer-2019: discuss potential contract options with current security company. If necessary
prepare RFP for solicitation of services.
6
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Contract Services
Function Program
30 - Environmental Health & Open Space 55330 - Water Resource Recovery
SUMMARY OF CHANGE
Request to fund the extension of the annual service warranty for the high-speed blower at the Water
Resource Recovery Facility (WRRF) and to fund fence repairs at the effluent structure.
FISCAL IMPACT
Operating Expense: One-time costs of $45,825 in 2019-20 and ongoing costs of $8,400.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 520 7227 35,000 19,225 54,225
Sub-Total: 2020 35,000 19,225 54,225
Total 35,000 19,225 54,225
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Current budget does not fund the purchasing an extended warranty and contract service costs
needed for fence repair.
Key Objectives: Making the Change Happen
1. Maintaining compliance with local, State and Federal Regulations.
2. Prevent trespassing, theft and improve safety at the effluent facility.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Utilities Department, WRRF, City ratepayers
7
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Contract Services
IMPLEMENTATION
Program Manager
Water Resource Recovery Facility Supervisor
Project Team
Implementation Plan
Utilize Contract Labor and Services
8
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Data Processing Services
Function Program
30 - Environmental Health & Open Space 55330 - Water Resource Recovery
SUMMARY OF CHANGE
Increase in software licensing costs associated with an upgraded SCADA system.
FISCAL IMPACT
Operating Expense: One-time costs of $8,000 in 2020 and ongoing costs of $4,083.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 520 7229 8,000 4,083 12,083
Sub-Total: 2020 8,000 4,083 12,083
Total 12,083 12,083
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
A one-time cost of $8,000 during the 2020-21 fiscal year for monitoring related to the Self-
Generation Incentive Program.
An ongoing cost of $4,083 for various software licensing costs associated with an upgraded SCADA
system (iFix, WIN911, Allen Bradley).
Key Objectives: Making the Change Happen
To ensure optimal operation of processes and maintaining compliance with local, State and Federal
regulations.
Goal & Policy Criteria
Major City Goal or Other Important Objective Addressed
STAKEHOLDERS
9
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Data Processing Services
Utilities Department and IT
IMPLEMENTATION
Program Manager
Water Resource Recovery Facility Supervisor
Project Team
Control Systems Staff
Implementation Plan
10
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Education and Training
Function Program
30 - Environmental Health & Open Space 55330 - Water Resource Recovery
SUMMARY OF CHANGE
Request to fund increased training related to major facility upgrades at the Water Resource Recovery
Facility, new processes and the development of a new safety program.
FISCAL IMPACT
Operating Expense: One-time costs of $8,750 in 2019-20.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 520 7459 8,750 8,750
Sub-Total: 2020 8,750 8,750
Total 8,750 8,750
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The WRRF upgrade, recent hiring, and the development of a new safety program has resulted in the
need for additional training.
Key Objectives: Making the Change Happen
1. To ensure that staff are proficient in the operation of new systems
2. To ensure new hires are trained appropriately in basic safety requirements
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Utilities Department, Utilities staff
11
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Education and Training
IMPLEMENTATION
Program Manager
Water Resource Recovery Facility Supervisor
Project Team
Implementation Plan
Enroll staff in required and supplemental training programs
12
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Electrical Service
Function Program
30 - Environmental Health & Open Space 55330 - Water Resource Recovery
SUMMARY OF CHANGE
Request to fund additional electrical costs at the Water Resource Recovery Facility.
FISCAL IMPACT
Operating Expense: One-time costs of $0 in 2020 and ongoing costs of $10,000.
Operating Expense: One-time costs of $0 in 2021 and ongoing costs of $90,000.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 520 7605 10,000 10,000
Sub-Total: 2020 10,000 10,000
2021 520 7605 90,000 90,000
Sub-Total: 2021 90,000 90,000
Total 100,000 100,000
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Electrical rates will continue to increase (a minimum of 1% annually) for operation of the Water
Resource Recovery Facility. Due to new regulatory requirements, an upgraded facility disinfection
system is expected to be online in 2021 which will result in a significant increase in electricity.
Ongoing cost estimated at $10,000 during 2019-20, and $90,000 during 2020-21. However, the
increase during the 2019-21 budget cycle will be offset by a reduction in chemical costs expected to
occur during the 2021-23 budget cycle.
Key Objectives: Making the Change Happen
Ensuring regulatory high-level Facility operations and maintenance.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Electrical Service
N/A
STAKEHOLDERS
Utilities Department, City ratepayers
IMPLEMENTATION
Program Manager
Water Resource Recovery Facility Supervisor
Project Team
Implementation Plan
Alternatives
Budget Review Team Comments
Budget Review Team Ranking
14
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Wastewater Administration and Engineering Contract Services
Function Program
35 - Fiscal Health & Governance 55300 - Wastewater Admin/Eng.
SUMMARY OF CHANGE
Request to fund contract services for new and ongoing regulatory, organizational and infrastructure
studies.
FISCAL IMPACT
Operating Expense: One-time costs of $0 in 2019-20 and ongoing costs of $22,500.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 520 7227 22,500 22,500
Sub-Total: 2020 22,500 22,500
Total 22,500 22,500
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Will allow Wastewater Administration to maintain future need for new and ongoing regulatory,
organizational and infrastructure studies. Additionally, the City’s sewer ratepayers will benefit from
studies that result in accurately reflected costs.
Key Objectives: Making the Change Happen
Use study findings in operational decision making to accurately assess fees and bring forth
recommendations to Council.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Developers, builders, ratepayers, and the Utilities Department
15
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Wastewater Administration and Engineering Contract Services
IMPLEMENTATION
Program Manager
Deputy Director - Wastewater
Project Team
Implementation Plan
Execute contracts with consultants
16
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Professional Association Membership
Function Program
35 - Fiscal Health & Governance 55300 - Wastewater Admin/Eng.
SUMMARY OF CHANGE
Request to fund membership with the California Association of Sanitation Agencies (CASA).
FISCAL IMPACT
Operating Expense: One-time costs of $0 in 2019-20 and ongoing costs of $12,470.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 520 7453 12,470 12,470
Sub-Total: 2020 12,470 12,470
Total 12,470 12,470
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
In order to stay abreast of current and upcoming legislation, regulations, and legal issues, the
Department relies on associations that have become the voices of the industry on the local, state,
and federal level. CASA is at the forefront of legislation and can assist with advocacy on behalf of
public wastewater agencies.
Key Objectives: Making the Change Happen
1. Assisting in addressing wastewater related health and safety concerns
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Utilities Department, Ratepayers
17
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Professional Association Membership
IMPLEMENTATION
Program Manager
Deputy Director-Wastewater
Project Team
Implementation Plan
Payment of association membership
18
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Overtime Costs
Function Program
30 - Environmental Health & Open Space 55330 - Water Resource Recovery
SUMMARY OF CHANGE
FISCAL IMPACT
.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2021 520 7020 13,000 13,000
Sub-Total: 2021 13,000 13,000
Total 13,000 13,000
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Current budget does not fund the necessary overtime which will increase significantly due to major
construction activities beginning in 2019. The increase includes anticipated costs associated with
overtime related to construction impacts, required trainin g, travel and factory acceptance testing.
Key Objectives: Making the Change Happen
Maintain compliance with local, State and Federal Regulations.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Utilities Department, WRRF, City ratepayers
19
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Overtime Costs
IMPLEMENTATION
Program Manager
Water Resource Recovery Facility Supervisor
Project Team
Implementation Plan
20
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Regulatory Fees
Function Program
20 - Infrastructure & Transportation 55300 – Water Resource Recovery Facility
SUMMARY OF CHANGE
Air Pollution Control District regulatory permit fee increase for standby generator.
FISCAL IMPACT
Operating Expense: Ongoing costs of $10,600 in 2020-21.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2021 520 7301 10,600 10,600
Sub-Total: 2021 10,600 10,600
Total 10,600 10,600
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The Sewer budget increased by $10,600 due to a need for an Air Pollution Control District (APCD) fee
associated with the new standby generator.
Key Objectives: Making the Change Happen
Continue to meet regulatory compliance
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
STAKEHOLDERS
The City of San Luis Obispo
21
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Regulatory Fees
IMPLEMENTATION
Program Manager
Deputy Director - Wastewater
Project Team
Implementation Plan
22
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Chemicals
Function Program
30 - Environmental Health & Open Space 55330 - Water Resource Recovery
SUMMARY OF CHANGE
FISCAL IMPACT
Operating Expense: One-time costs of $113,175 in 2020-21
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2021 520 7775 113,175 113,175
Sub-Total: 2021 113,175 113,175
Total 113,175 113,175
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Increase in chemical costs at the Water Resource Recovery Facility due to forecasted market
conditions, and an anticipated overlap of legacy and new systems coming online in 2021.
Key Objectives: Making the Change Happen
Ensure compliance with State and Federal regulations.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Utilities Department, WRRF, City ratepayers
23
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Resource Recovery Facility Chemicals
IMPLEMENTATION
Program Manager
Water Resource Recovery Facility Supervisor
Project Team
Implementation Plan
Purchase necessary chemicals.
24
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Nacimiento Reservoir Operating Costs
Function Program
20 - Infrastructure & Transportation 55110 - Water Source of Supply
SUMMARY OF CHANGE
Request to fund increased Source of Supply operating program budget with the Nacimiento Water
Operating Fund budget.
FISCAL IMPACT
Operating Expense: One-time costs of $255,427 in 2019-20.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7271 255,500 255,427
Sub-Total: 2020 255,500 255,427
Total 255,500 255,427
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Nacimiento Water Project expenditures (excluding energy costs) increased due to the following:
a) Non-Routine O&M for the completion Santa Margarita Pipe relocation project by $195,000
b) Capital Reserves / Equipment replacement increased by $100,000
c) $40,000 decrease in the Nacimiento Debt Service payment
Key Objectives: Making the Change Happen
Continue to provide a dependable supply of raw water for treatment.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
25
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Nacimiento Reservoir Operating Costs
IMPLEMENTATION
Program Manager
Deputy Director - Water
Project Team
Implementation Plan
Nacimiento Project Commission 2019-20 adoption
26
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Salinas Reservoir Operating Costs
Function Program
20 - Infrastructure & Transportation 55110 - Water Source of Supply
SUMMARY OF CHANGE
Request to fund increased Source of Supply operating program budget with the Salinas Dam
Operating budget.
FISCAL IMPACT
Operating Expense: One-time costs of $1,750,000 in 2019-20 and ongoing costs of $142,000.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7289 1,750,000 142,000 1,892,000
Sub-Total: 2020 1,750,000 142,000 1,892,000
Total 1,750,000 142,000 1,892,000
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The Source of Supply budget increased by approximately $1,892,000 due to the following:
a. Capital Project contribution increase to fund the Salinas Pipeline Repair at a cost of $1,500,000.
b. Army Corp of Engineers (ACOE) Preliminary Assessment and ACOE admin fees total
approximately $250,000 and occur once every five years
c. County Utility Operations returned to full staffing and service levels resulting in an increase of
approximately $142,000
Key Objectives: Making the Change Happen
Continue to provide a dependable supply of raw water for treatment
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
27
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Salinas Reservoir Operating Costs
STAKEHOLDERS
The City and County of San Luis Obispo
IMPLEMENTATION
Program Manager
Deputy Director - Water
Project Team
Implementation Plan
Work with the County of San Luis Obispo to administer annual budget
28
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Distribution Electrical Service
Function Program
20 - Infrastructure & Transportation 55160 - Water Distribution
SUMMARY OF CHANGE
Request to fund additional electrical service at existing pump stations installed with the Telemetry
Upgrade Project.
FISCAL IMPACT
Operating Expense: One-time costs of $0 in 2019-20 and ongoing costs of $9,000.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7605 9,000 9,000
Sub-Total: 2020 9,000 9,000
Total 9,000 9,000
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The increased electrical costs are related to the addition of equipment at existing pump stations and
other sites associated with the Telemetry Upgrade project.
Key Objectives: Making the Change Happen
Ensures the ability of the Water Distribution System to provide uninterrupted water service and
allows for optimization.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Utilities Department, IT Department
29
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Distribution Electrical Service
IMPLEMENTATION
Program Manager
Water Distribution Supervisor
Project Team
Implementation Plan
30
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Distribution Machinery and Equipment
Function Program
20 - Infrastructure & Transportation 55160 - Water Distribution
SUMMARY OF CHANGE
Request to fund purchase of new equipment to improve leak detection within the Water Distribution
system.
FISCAL IMPACT
Operating Expense: One-time costs of $25,000 in 2019-20.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7953 25,000 25,000
Sub-Total: 2020 25,000 25,000
Total 25,000 25,000
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Purchase of equipment for pinpointing water leaks within a smaller radius.
Key Objectives: Making the Change Happen
Use of the equipment will result in cost savings by reducing labor and operational costs by preventing
unnecessary work.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Utilities Department, Public Works Department, City ratepayers
31
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Distribution Machinery and Equipment
IMPLEMENTATION
Program Manager
Water Distribution Supervisor
Project Team
Implementation Plan
32
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Contract Services
1. Function Program
30 - Environmental Health & Open Space 55150 - Water Treatment
SUMMARY OF CHANGE
Request to fund increased operations and maintenance costs through contracted services at the
Water Treatment Plant.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7227 102,620 102,620
Sub-Total: 2020 102,620 102,620
Total 102,620 102,620
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
$20,000 - TTHM service contract: WTP staff anticipates purchasing a TTHM analyzer for the onsite
laboratory to monitor regulatory compliance of TTHM's in the City's water system.
$16,000 - Permit Fees: State Water Resources Control Board (SWRCB) restructured the fee base in
2017. As a result, the City's annual permit fee increased from $16,000 to $32,000 annually.
$10,000 - Sludge Hauling and Drying Bed: The annual cost has increased. Additionally, prior year
budget allocations have not been sufficient. This increase also reflects the actual costs for the last
two years.
$12,000 - Weed abatement and tree trimming services for the Water Treatment Plant, Reservoir #1,
and Reservoir #2 have increased over the last several years. Additionally, prior year budget
allocations have not been sufficient.
$12,000 - Federal EPA & SWRCB: Federal EPA & SWRCB require water systems to sample for
Unregulated Contaminants (UCMR) every five years. In 19-20 and 20-21, the Water Treatment Plant
will be conducting required UCMR 4 sampling each year, for a duration of 2 years.
33
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Contract Services
$6,000 - Electrical Work: Due to the City's new Electrical Work Policy, it is necessary to have a
certified electrician onsite for most electrical and instrumentation work.
$26,260 - Miscellaneous Costs: Costs increases for the following contract services: Emergen cy
Generator Service, Backflow Testing, Fire Sprinkler, Fire Extinguisher, Stanley Security, After Hours
Patrol, General Landscape, Electrical Transformer, and Building maintenance.
Key Objectives: Making the Change Happen
1. Ensure compliance with State and Federal regulations.
2. Provide high levels of Water Treatment Plant (WTP) preventative maintenance.
3. Optimize equipment and facility lifespan.
4. Replace worn equipment.
5. Ensure the ability of the WTP to provide high quality, uninterrupted water treatment.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Utilities Department, City water users
IMPLEMENTATION
Program Manager
Jason Meeks
Project Team
Implementation Plan
Utilize Contract Labor and Services
34
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Chemicals
Function Program
30 - Environmental Health & Open Space 55150 - Water Treatment
SUMMARY OF CHANGE
Request to fund additional chemical costs due to an increase in vendor pricing.
FISCAL IMPACT
Operating Expense: One-time costs of $0 in 2020 and ongoing costs of $40,895.
Operating Expense: One-time costs of $0 in 2021 and ongoing costs of $41,391.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7775 40,895 40,895
Sub-Total: 2020 40,895 40,895
2021 500 7775 41,391 41,391
Sub-Total: 2021 41,391 41,391
Total 82,286 82,286
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Chemical costs have had significant increases, as much as 50%, over the past two years. This will
result in cost increases of $40,895 in 2019-20 and $41,391 in 2020-21.
Key Objectives: Making the Change Happen
1. Ensure compliance with State and Federal regulations.
2. Ensure the ability of the WTP to provide high quality, uninterrupted water treatment.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
35
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Chemicals
STAKEHOLDERS
Utilities Department, City ratepayers
IMPLEMENTATION
Program Manager
Water Treatment Plant Supervisor
Project Team
Implementation Plan
Alternatives
Budget Review Team Comments
Budget Review Team Ranking
36
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Equipment Maintenance and Supplies
Function Program
30 - Environmental Health & Open Space 55150 - Water Treatment
SUMMARY OF CHANGE
Request to fund increased maintenance costs at the Water Treatment Plant.
FISCAL IMPACT
Operating Expense: One-time costs of $10,000 in both 2019-20 and 2020-21
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7233 10,000 10,000
2021 500 7233 10,000 10,000
Sub-Total: 2020 10,000 10,000
Total 10,000 10,000
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Supplies - Batteries for the emergency back-up electrical generator for the Water Treatment Plant
are due for replacement which will occur during 2019-20.
Maintenance - The bulk propane storage tank retaining wall is collapsing and in need of repair and/or
replacement. Staff will replace retaining wall in 2020-21 at a cost of $10,000.
Key Objectives: Making the Change Happen
1. Ensure compliance with State and Federal regulations.
2. Provide high levels of WTP preventative maintenance.
3. Optimize equipment and facility lifespan.
4. Replace worn equipment.
5. Ensure the ability of the WTP to provide high quality, uninterrupted water treatment.
Goal & Policy Criteria
N/A
37
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Equipment Maintenance and Supplies
STAKEHOLDERS
N/A
IMPLEMENTATION
Program Manager
Water Treatment Plant Supervisor
Project Team
Water Treatment Plant Staff
Implementation Plan
38
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Electrical Service
Function Program
30 - Environmental Health & Open Space 55150 - Water Treatment
SUMMARY OF CHANGE
Request to fund additional electrical costs at the Water Treatment Plant.
FISCAL IMPACT
Operating Expense: One-time costs of $0 in 2019-20 and ongoing costs of $13,000.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7605 13,000 13,000
Sub-Total: 2020 13,000 13,000
Total 13,000 13,000
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The Water Treatment Plant is adding a disinfection byproduct reduction system to onsite water
storage to maintain regulatory compliance, requiring increased electrical service.
Key Objectives: Making the Change Happen
Ensure the ability of the WTP to provide high quality, uninterrupted water treatment.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
STAKEHOLDERS
Utilities Department, City ratepayers
39
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Electrical Service
IMPLEMENTATION
Program Manager
Water Treatment Plant Supervisor
Project Team
Implementation Plan
40
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Overtime Costs
Function Program
30 - Environmental Health & Open Space 55150 - Water Treatment
SUMMARY OF CHANGE
Request to fund overtime for Water Treatment Plant staffing.
FISCAL IMPACT
Operating Expense: One-time costs of $42,000 in 2019-20 and 2020-21.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7020 42,000 42,000
2021 500 7020 42,000 42,000
Sub-Total: 2020 84,000 84,000
Total 84,000 84,000
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Ensure adequate staffing at the Water Treatment Plant. Recent retirements necessitate covering
shifts with experienced and certified staff using overtime. This need will decrease as new operators
are hired and certified over the next two years.
Key Objectives: Making the Change Happen
1. Provide sufficient staffing coverage of the Water Treatment Plant (WTP)
2. Ensure the ability of the WTP to provide high quality, uninterrupted water treatment
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
41
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Treatment Plant Overtime Costs
Utilities Department, City rate payers
IMPLEMENTATION
Program Manager
Water Treatment Plant Supervisor
Project Team
Implementation Plan
42
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Administration and Engineering Contract Services
Function Program
35 - Fiscal Health & Governance 55100 - Water Admin/Engineering
SUMMARY OF CHANGE
Request to fund contract services for new and ongoing regulatory, organizational, and infrastructure
studies
FISCAL IMPACT
Operating Expense: One-time costs of $0 in 2019-20 and ongoing costs of $37,550.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 500 7227 37,550 37,550
Sub-Total: 2020 37,550 37,550
Total 37,550 37,550
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Will allow Water Administration to maintain future need for new and ongoing regulatory,
organizational, and infrastructure study services. Additionally, the City’s water ratepayers will benefit
from studies that result in accurately reflected costs
Key Objectives: Making the Change Happen
Use study findings in operational decision making, to accurately assess fees, and in bringing forth
recommendations to Council.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
Developers, builders, ratepayers, and the Utilities Department
43
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Water Administration and Engineering Contract Services
IMPLEMENTATION
Program Manager
Deputy Director - Water
Project Team
Implementation Plan
1. Execute contracts with consultants
2. Use study findings in operational decision making, to accurately assess fees, and in bringing forth
recommendations to Council
44
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Whale Rock Contract Services
Function Program
20 – Infrastructure & Transportation 55500 – Reservoir Operations
SUMMARY OF CHANGE
Request to fund increased State Water Resources Control Board permit fees.
FISCAL IMPACT
Operating Expense: Ongoing costs of $28,400.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 520 7227 28,400 28,400
Sub-Total: 2020 28,400 28,400
Total 28,400 28,400
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Permit fees have increased due to added oversight resulting from the Oroville spillway failure.
Key Objectives: Making the Change Happen
1. Ensure compliance with State and Federal regulations.
2. To continue provide a clean, dependable supply of raw water for treatment
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
The City, Cal Poly University, California Men's Colony
45
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Whale Rock Contract Services
IMPLEMENTATION
Program Manager
Whale Rock Supervisor
Project Team
Implementation Plan
46
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Whale Rock Electrical Service
Function Program
20 - Infrastructure & Transportation 55500 - Reservoir Operations
SUMMARY OF CHANGE
Request to fund additional electrical costs at the Whale Rock Reservoir
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 640 7605 13,900 13,900
Sub-Total: 2020 13,900 13,900
2021 640 7605 8,900 8,900
Sub-Total: 2021 8,900 8,900
Total 22,800 22,800
SERVICE LEVEL IMPACT
None
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Electric Utility – Cost increases for Whale Rock electricity usage are estimated at 3% per year, on
average. This will result in cost increases of $13,900 in 2019-20 and $8,900 in 2020-21.
Key Objectives: Making the Change Happen
Continue to provide a dependable supply of raw water for treatment.
Goal & Policy Criteria
N/A
Major City Goal or Other Important Objective Addressed
N/A
STAKEHOLDERS
The City, Cal Poly University, California Men's Colony
47
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Utilities
Title: Whale Rock Electrical Service
IMPLEMENTATION
Program Manager
Whale Rock Supervisor
Project Team
Implementation Plan
48