HomeMy WebLinkAbout10.e LB 2026-2027-05 CIP Program Performance Management Policy CLAY COUNTY UTILITY AUTHORITY
RESOLUTION NO. 2026/2027-05
A RESOLUTION OF CLAY COUNTY UTILITY AUTHORITY, AN
INDEPENDENT SPECIAL DISTRICT OF THE STATE OF
FLORIDA ("AUTHORITY"), INCORPORATING FINDINGS;
ADOPTING THE AUTHORITY'S CAPITAL IMPROVEMENT
PROGRAM PERFORMANCE MANAGEMENT POLICY;
PROVIDING FOR CONFLICTS, SEVERABILITY, AND
EFFECTIVE DATE.
WHEREAS, the AUTHORITY intends to maintain a sustainable Capital Improvement
Program("CIP") to maintain the operational and fmancial performance of the utility; and
WHEREAS, the AUTHORITY wishes to adopt its "Capital Improvement Program
Performance Management Policy" (herein so called, which may also be referred to as "CIP
Performance Management Policy" or simply "CIP Policy") in the form as attached hereto as
Exhibit "A" and hereby incorporated by this reference, establishing reasonable and sustainable
CIP Performance Management Measures to guide planning, budgeting, decision making,
performance, and reporting.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF
THE AUTHORITY AS FOLLOWS:
SECTION I. The foregoing findings are incorporated herein by reference and made a
part hereof.
SECTION II. The AUTHORITY hereby adopts the Capital Improvement Program
Performance Management Policy attached hereto as Exhibit "A" as its official Capital
Improvement Program Performance Management Policy relating to all of the subject matter set
forth therein.
SECTION III. All other resolutions or part of resolutions in conflict with any of the
provisions of this Resolution are hereby repealed.
SECTION IV. If any section or portion of a section of this Resolution proves to be
invalid, unlawful, or unconstitutional, it shall not be held to invalidate or impair the validity,
force, or effect of any other section or part of this Resolution.
SECTION V. This Resolution shall become effective immediately upon its passage and
adoption.
1 CCUA Resolution No.2026/2027-05
DULY ADOPTED by the Board of Supervisors, Clay County Utility Authority, on this
6th day of October, 2026, effective as of October 1, 2026.
CLAY COUNTY UTILITY AUTHORITY,
BY ITS BOARD OF SUPERVISORS
By:
,Chairman
ATTEST: APPROVED AS TO FORM AND
LEGALITY:
By: By:
Janice Loudermilk, Secretary Grady H. Williams, Jr., LL.M.,
Clay County Utility Authority General Counsel
(Seal)
2 CCUA Resolution No.2026/2027-05
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POLICY & PROCEDURES
Capital Improvement Program Performance Management Policy
Effective Date: October 1, 2026
Revision Date: N/A
Section 1. Purpose
1.1. Clay County Utility Authority(the Authority)intends to sustain a Capital Improvement
Program(CIP)to maintain the operational and financial performance of the utility. To
achieve this purpose, the Authority's Management defines within this policy the CIP
Performance Management Measures they shall report to the Board of Supervisors to
comply with the adopted CIP Performance Management Resolution No. 2026/2027-05
Section 2. Policy
2.1. The Authority establishes with this policy reasonable and sustainable CIP Performance
Management Measures to guide planning, budgeting, decision making, performance,
and reporting.
Section 3. Goals and Objectives
3.1. The Authority's Management intends to lead the utility in sustainably and responsibly
achieving and maintaining specific CIP Performance Management Measures. In
achieving and maintaining these measures, the Authority will accomplish the
objectives listed below.
3.1.1. Use industry accepted measures to monitor and report on the Authority CIP
performance.
3.1.2. Establish and/or maintain sufficiently high bond and/or credit ratings to assure
access to affordable credit and low borrowing costs.
3.1.3. Guide the Authority's Board of Supervisors and leadership regarding debt
management.
3.1.4. Guide the Authority leadership and management regarding expected CIP
budgeting, performance, and reporting.
3.1.5. Establish appropriate levels of CIP funding, contingencies, and reserves for project
expenditures.
3.1.6. Establish appropriate levels of CIP funding for renewal and replacement
expenditures as well as forecast system expansions.
3.1.7. Establish expectations for processes and performance reporting of projects within
the CIP.
3.1.8. Establish CIP Performance Management Measures, the Authority's management
shall report to the Board of Supervisors on an established monthly, quarterly, or
annual basis.
3.1.9. Maintain flexibility to address capital and financial needs of the utility.
Section 4. Definitions
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Capital Improvement Program Management Policy
4.1. Asset Management System(AMS): The system the Authority uses to track data related
to the physical plant and field infrastructure to deliver potable water, wastewater, and
reclaimed water services.
4.2. Capital Improvements: The improvement of land and fixed assets to deliver water,
wastewater, and reclaimed water services.
4.3. Capital Improvement Program (CIP): the Authority's five-year program identifying,
planning, budgeting, and reporting on CIP projects and their respective performance
related to their scope, schedule, and budget.
4.4. Capital Project Review Committee(CPRC): A committee of Authority staff comprised
of the Executive Director, Chief Engineer, Chief Operations Officer, Chief Financial
Officer, Assistant Chief Engineer, and the Assistant Chief Operations Officer. The
CPRC reviews the initiation and performance of projects listed in the CIP.
4.5. CIP Budget:the sum of all the individual CIP project budgets along with a Management
Reserve amount in either a single fiscal year or total over a five (5) year period.
4.6. Contingency: Budgeted funds intended for unexpected or unforeseen expenditures
during a fiscal year or within the development of a CIP project.
4.7. Equivalent Residential Connection (ERC): The representation of water, wastewater,
and reclaimed water demands for an equivalent residential home connecting to the
utility systems operated and maintained by the Authority. Refer to the Authority's latest
edition of the adopted Service Availability policy for the current water, wastewater,
and reclaimed demands that make-up the ERC definition.
4.8. Management Reserve: The funding identified within the CIP to serve as a contingency
fund should individually project contingencies be exhausted.
4.9. Project Need Identification: When Authority staff identify the need for a CIP Project
to address renewal, rehabilitation, or replacement of existing infrastructure or the
expansion of Authority infrastructure to meet service availability demands of the
community.
4.10. Project Concept Development: When Authority staff begin to develop project concepts
or scope of work to address the needs stated in the Project Need Identification phase of
a CIP project.
4.11. Project Basis of Design: The phase of a CIP project when Authority staff prepare either
a technical memorandum or report stating the design objectives as well as performance
and regulatory requirements.
4.12. Project Budget: The total cost of all planned expenses for a single CIP project to include
Authority staff time and Professional Consultants performing geotechnical
explorations and testing, surveying, engineering design, construction inspection or
administrative services, as well as Contractors performing the physical construction of
capital infrastructure.
4.13. Project Cash Flows: The estimated timing of CIP project expenditures over time
whether monthly or fiscal year timeframes.
4.14. Project Design: The phase of a CIP project when either Authority staff or consultant
prepares a technical design including drawings, calculations, specifications, and permit
applications for construction of capital infrastructure.
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Capital Improvement Program Management Policy
4.15. Project Procurement: The phase of a CIP project after the completion of the Project
Design to engage a responsive and qualified contractor to construct the designed capital
infrastructure.
4.16. Project Construction:The phase of a CIP project when a contractor under a construction
contract physically builds capital infrastructure.
4.17. Project Close-out: The end of a CIP project occurs when Certification of Completion
of Construction (CoCs) are filed with regulatory agencies, the constructed assets are
accepted by the Authority and placed into operation, and Authority staff files final
project documents to complete the project process removing the project from the CIP
and placing the assets within the financial system.
4.18. Project Manager / Representative: The individual of the Authority's staff responsible
for planning, executing, and closing projects.
Section 5. Forecasting
5.1. The Authority's Development Services shall maintain forecasts of population growth
looking forward with one (1), five (5), ten (10), fifteen (15), and twenty (20) year
intervals.
5.1.1. The Authority shall update forecasts of population growth at least annually.
5.2. The Authority's population growth forecast looking forward one (1) year shall be
consistent with the growth in customer accounts used to set the annual operating
budget.
5.3. The Authority shall consider information from the Authority's pace of meter
installations, Developer Agreements, Master Utility Agreements, Development
Services inquiries as well as publicly available information from Clay County's
Building Department, the University of Florida's Bureau of Economic and Business
Research(BEBR), and the United States Census Bureau in developing forecast models.
5.4. The Authority shall maintain records of average and peak potable water demands from
the Water Treatment Plants (WTP), wastewater flows to the Water Reclamation
Facilities (WRFs), and reclaimed water demands from the Reclaimed Water Storage
Facilities.
5.4.1. The Authority staff will base forecasts of customer potable water demands,
wastewater flows, and reclaimed water demands on rolling five (5) year averages
along with standard deviations and variances.
5.4.1.1. The forecasts will provide potable water demands, wastewater, flows, and
reclaimed water demands in industry standard units such as ERC per
Thousand Gallons (kGal.), Million Gallons per Day (MGD), etc.
5.5. The Authority shall use the forecasts of population growth and related potable water
demands, wastewater flows, and reclaimed water demands to inform identification of
expansion projects within the CIP.
Section 6. Asset Management
6.1. The Authority shall maintain an Asset Management System (AMS) of all existing
operational potable water,wastewater, and reclaimed water infrastructure.
6.2. The Authority shall use the AMS to inform the CIP regarding the renewal,
rehabilitation, and replacement project needs related to existing infrastructure.
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Capital Improvement Program Management Policy
6.3. The Authority staff must consider the following items to inform planning, scoping,
design development, and decision making related to the renewal, rehabilitation, and
replacement of existing infrastructure.
6.3.1. Asset Life Cycle
6.3.2. Condition assessments of the asset
6.3.2.1. Repair and maintenance activities on the asset
6.3.3. Risk and consequence of failure analysis of the asset
Section 7. CIP Management
7.1. Management shall establish each fiscal year a summary of CIP budgeted projects
expected to be advanced during a fiscal year and over a five-year period.
7.2. Management shall also prepare a list of known and anticipated CIP needs for a ten-year
period.
7.3. Typical CIP Project Design Development Phases needed to develop a reasonable scope,
schedule, and budget.
7.3.1. Need Identification
7.3.2. Concept Development
7.3.3. Basis of Design
7.3.4. Design
7.3.5. Procurement
7.3.6. Construction
7.3.7. Close-out
7.4. CIP Project Budgets
7.4.1. The Authority's Management shall use a standardized and documented process for
development of individual CIP project budget when the need for the project has
been identified by staff.
7.4.1.1. For projects that span multiple fiscal years, the Authority shall develop the
total project budget first then provide information related to planned
expenditures within individual fiscal years.
7.4.2. Management shall establish a CIP Engineering Project Number and Financial Job
Number when a CIP Project is created at the Project Concept Development Level.
7.4.3. Project budget contingencies: Authority Management shall build budget
contingencies within each individual project budget to address levels of accuracy
in the cost estimating and the uncertainty of developing information. Individual
project budget contingencies will align with the recommended contingencies, but
may vary, based upon level of uncertainty in the project development phase listed
below.
7.4.3.1. Project Concept Development: 50%
7.4.3.2. Project Basis of Design: 40%
7.4.3.3. Project Design: 30%
7.4.3.4. Project Procurement: 10%
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Capital Improvement Program Management Policy
7.4.3.5. Project Construction: 10%
7.4.3.6. Changes in the project contingencies as a project develops will not require
formal change management process, so long as the project's scope,
schedule, and total budget do not change.
7.4.3.6.1. Changes in a project's scope, schedule, and/or total project budget
require a formal documented changed management process.
7.4.4. Change Management: The Authority's Management shall use formal processes for
documenting changes in individual CIP project scope, schedules, and budgets.
7.4.4.1. The Authority's Project Manager shall be responsible for ensuring all
project documentation is kept within the project files.
7.4.4.2. CIP Project Change Orders shall be processed consistently with the
Authority's current Procurement Policy and contract requirements.
7.4.4.3. Use of the Management Reserve: The Authority intends for the
Management Reserve (Section 8)to serve as a funding source of last resort
for CIP projects. Should a CIP project experience a projected budget
shortfall during the course of a project, the Authority's Project Manager
shall initiate the formal Change Management process.
7.4.4.4. The Authority's Project Manager is expected to manage project changes
within a reasonable amount of time from when they occur (e.g. 30 days).
7.4.4.4.1. The Authority's prohibits the practice of waiting until the end of a
project to execute a single Change Management process to
encompass all changes that occurred during a project.
7.4.5. CIP Project Planned Pace of Expenditures (Cash Flow)
7.4.5.1. The Authority's Project Manager shall prepare and maintain an estimated
pace of expenditure for each CIP Project.
7.4.5.2. The Authority's Project Manager shall coordinate the CIP project planned
pace of expenditure with the Chief Engineer, Chief Financial Officer, and
the Executive Director within the CPRC.
7.4.5.2.1. Management shall use the CIP project budgets along with the
planned pace of expenditures to inform decisions regarding CIP
financing.
7.4.5.3. The CIP planned pace of expenditures shall inform the larger CIP especially
considering projects spanning more than one fiscal year.
7.4.5.4. The Chief Engineer shall coordinate with the Chief Financial Officer
regarding the planned pace of total CIP expenditure remaining consistent
with the forecast cash flows over five (5) years.
7.4.6. CIP Project Close-out
7.4.6.1. The Project Manager shall reconcile the Project Budget with all contracts,
Purchase Orders, and Change Orders prior to final completion and
acceptance of a CIP Project.
7.4.6.1.1. The Project Manager shall use a documented Change Management
process to adjust the Project Budget consistent with the final
amounts of all contracts, purchase orders, and Change Orders.
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Capital Improvement Program Management Policy
7.4.6.1.2. Any surplus funds in a Project Budget shall be transferred into the
Management Reserve upon the Project Close-out of the CIP Project
by the Chief Financial Officer.
7.4.6.2. Upon the documented final completion and acceptance of a CIP Project,the
Authority's Project Manager shall provide the Chief Financial Officer and
Risk and Safety Manager a written Notice of Completion and Project Close-
out within 30 calendar days of approval of the final payment.
7.4.6.2.1. In the event a CIP Project is planned or designed,but the Authority's
Management decides not to construct, the Authority's Project
Manager shall provide the Chief Financial Officer a written Notice
of Completion and Project Close-out within 30 calendar days from
approval of the final payment.
7.4.6.2.2. The Chief Financial Officer shall close the CIP Project financial job
numbers upon receipt of the Notice of Completion and Project
Close-out.
7.4.6.2.3. The Risk and Safety Manager shall notify, in writing, the
Authority's Insurance Agent of the CIP Project completion and
acceptance placing the constructed assets into operational service.
7.4.6.2.3.1. The Risk and Safety Manager shall confirm with the
Insurance Agent the constructed assets are added to the list
of insured assets.
Section 8. Management Reserve
8.1. Authority Management shall include a Management Reserve each fiscal year of
roughly 5% of the sum of the CIP project budgets within the total annual CIP budget.
8.2. The CIP Management Reserve shall not accumulate over time.
Section 9. Inflation Indexing using the Consumer Price Index(CPI)
9.1. The Authority recognizes the need to maintain purchasing power over the course of
time. To address this issue, The Authority's Management shall consider changes in the
PPI and CPI as published by the United States Bureau of Labor Statistics when
preparing and updating project budgets.
9.2. The Authority's Management may consider other inflationary measures in the
preparation of project budgets so long as the source of such inflationary measures are
from documented and standardized source related to the utility or associated industry
Section 10. Reporting Requirements and CIP Financial Performance Management Measures
(FPMM)
10.1. Management shall provide the Board of Supervisors an annual report by the first
meeting in September detailing the CIP project efforts at the beginning of the fiscal
year and the work completed by the end of the fiscal year.
10.1.1. If CIP Projects are not initiated as planned,Authority staff shall disclose the reason
for the delay and explain in writing any adjustments in CIP scheduling and
budgeting.
10.2. Management shall provide the Board of Supervisors quarterly reporting on the progress
of the CIP projects.
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10.2.1. The quarterly reporting shall include the currently approved CIP project budget and
schedules along with the elements listed in Section 7 7.3.
10.2.1.1. CIP Project Budget
10.2.1.1.1. The original Board approved project budget
10.2.1.1.2. The number of approved project budget changes/amendments
10.2.1.1.2.1. The dollar ($) value and percentage (%) changed of the
approved project budget changes/amendments
10.2.1.1.3. The current Board approved project budget
10.2.1.2. CIP Project Contracts
10.2.1.2.1. The total value of contracts within the approved project budget
10.2.1.2.1.1. The total value invoiced against the approved project
contracts
10.2.1.2.1.1.1. The percent (%) complete against the entire project
budget including variances ($ value and %
complete).
10.2.1.2.1.1.2. The percent (%) complete against the respective
contracts including variances ($ value and %
complete).
10.2.1.2.1.1.3. The total earned value against the approved project
budget (% complete) including variance ($ value).
10.2.1.3. CIP Project Schedules
10.2.1.3.1. Total Project Schedule with Variances (days and% complete)
10.2.1.3.1.1. Contract schedules within the Project with Variances (days
and% complete)
CHANGE LOG
Date of Change Description of Change
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