Project Budgets and Cost Tracking

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					                                                           SANTA BARBARA COUNTY
                                                       AIR POLLUTION CONTROL DISTRICT
                                                          POLICIES AND PROCEDURES


    Policy No.                          6100.063.1996                                                 Draft
                                        Div Pol Yr

    Supersedes No.                                                                                     Final     x
                                        Div Pol Yr

    Date:         October 17, 1996 (Revised Oct. 25,2000)                                              Pages 6
    Topic: Tracking Cost Reimbursable Project APCD Costs vs. Annual Budget
    Distribution: APCD Staff


This Policy and Procedure provides guidance to APCD staff in tracking planned and out-of-scope APCD
expenditures against the annual budgets prepared for larger cost reimbursable projects. In summary, each
APCD Project Manager is responsible for tracking expenditures for planned work against the annual project
budget prepared for their respective cost reimbursable project(s) using the procedures described in this
policy. Any out-of-scope expenditures on their project(s) will also be tracked. This information will be
provided to the permit holder on a periodic basis.


BACKGROUND

During the APCD’s fiscal year budget preparation process, annual project budget estimates for planned
APCD staff work on larger cost reimbursable projects will be provided to the respective permit holders.
These annual budget estimates are in addition to APCD’s ninety (90) day reimbursable project cost
projections stipulated in Rule 210.I.C.d. The projected costs shown in these annual budget estimates are
derived from anticipated planned work by staff on their projects and are not to be exceeded. A list of
APCD planned activities, which serve as the basis for the annual budget estimates, will be provided to the
permit holder. Any “out-of-scope” work performed on a project during this time period is considered
additional and not included in the planned budget estimate. However, the permit holder may inform the
APCD in advance of a particular out-of-scope activity (e.g. a PTO mod) and request to include it in the
annual budget. A list of activities the APCD considers out-of-scope will also be provided to reimbursable
projects. All reimbursable project expenditures will be tracked against budget and guidance to
Project Managers for performing this tracking function is the subject of this policy.

Smaller reimbursable projects with actual annual APCD staff charges of $5000 or less (during the most
recent APCD fiscal year) will not have annual project budgets prepared nor the budget tracking performed
as described in this policy. Instead, Rule 210.I.C.d. provisions will apply to these projects. It is
recommended, however, that APCD staff use the timecard activity code system for planned and out-of-
scope work performed on these smaller reimbursable projects as well, for internal tracking purposes.




Policies and Procedures Memoranda are intended to provide agency staff, applicants and the public guidance relative to
standardized District procedures. These policies and procedures shall not be interpreted in conflict with District Rules
and Regulations or administrative policies, and may be modified or updated periodically without advance notice.
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New cost reimbursable projects that start during a particular fiscal year and meet the above criteria, will be
provided a prorated annual project budget for planned APCD work, and tracked consistent with this policy.


POLICY

APCD staff who charge to, and are responsible for, a larger cost reimbursable project (with an annual
budget) will use the following procedure to track APCD planned and out-of-scope project costs:

*        APCD’s Cost Reimbursable Projects- Planned and “Out-of-Scope” Project Activities List
         (Attachment 1), which defines and gives examples of both types of tasks, will be provided to both
         APCD staff who charge to cost reimbursable projects, and to the permit holder with their annual
         project budget.

*        Project Managers will be provided project tracking labels which will be used to inform APCD staff
         of the correct activity code for any new work to be charged to their project(s). APCD staff
         timecard charges to reimbursable projects will reflect the correct four-digit timecard activity code
         for the planned or out-of-scope work performed on a project.

*        APCD staff anticipating any new charges to reimbursable projects will advise the appropriate
         Project Manager and obtain the appropriate charge codes prior to charging to the project.

*        Since out-of-scope work is considered additional and not included in the annual budget estimates,
         any proposed work activity which constitutes out-of-scope work per the APCD’s Out-of-Scope
         Activities List must be approved by the Project Manager. Project Managers will track their project
         out-of-scope work activities and update their Supervisor on an on-going basis to coordinate staff
         workloads. This will help ensure consistency in applying out-of-scope off with the permit
         holder activities to cost reimbursable projects.

         Work that clearly falls under the Activities List descriptions of out-of-scope (e.g. ATCs, breakdowns)
         does not require pre-approval sign-off with the permit holder.

         Work that is out-of-scope because it is “unanticipated” or “any other activities meeting definition
         above” (per Activities List) and is significant in cost (i.e. above $ 1500 in APCD staff charges)
         requires sign-off by the Project Manager and permit holder before work begins. A brief letter sent
         via FAX from the Project Manager to the permit holder outlining the proposed out-of-scope task
         and estimated staff hours along with a signature block for approval by the permit holder (and faxed
         back to APCD) is adequate. The permit holder’s approval of the proposed out-of-scope
         expenditure is to be kept in the project file for tracking purposes.

*        Project Managers will review all charges to their project(s) each pay period utilizing APCD ‘s
         timecard database reports. Project staff charges with appropriate division cost centers, planned
         and out-of-scope activity codes and permit breakdown information will be reviewed by the Project
         Manager. Any corrections to staff timecard charges will be made by the Project Manager, using
         Admin.’s Request to Change Timecard Charges form, prior to the APCD’s monthly invoicing date.

*        Project Managers will track project charges during each fiscal year, including cumulative charges
         for planned work versus the annual planned project budget. Tracking will follow the planned budget
         categories (i.e. project management/compliance, permitting, inspections, monitoring, DAS) where
         applicable. Out-of-scope charges will also be tracked. This information may be obtained from



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        timecard reports. . Also, any applicable outside contractor charges to a project (e.g. DAS, AAQ
        Monitoring) must also be obtained from Admin’s invoice records as well.

*       Project Managers are responsible for ensuring that planned project budgets for their reimbursable
        project(s) are not exceeded. If tracking of planned project expenditures indicates a budget
        problem is imminent, this situation must be discussed with their Supervisor/Manager immediately.
        If warranted, the permit holder will be contacted to discuss this situation as well as corrective
        actions to remedy the problem. Any APCD request for additional funds shall be made in writing
        and specify the basis for such a request, pursuant to Rule 210 Section I.C.d.3, The APCD shall
        recover its costs for any work performed on a cost reimbursable project pursuant to Rule 210
        Sections I.C.d. and V.A.3.

*       Semi-annually (half-way point and at    end)during each fiscal year, Project Managers will
        provide a summary of the above tracking analysis for each of their projects, on a year-to-date
        cumulative basis, to the Permitting Supervisor using the spreadsheet format shown in Attachment
        2.

*        After Permitting Supervisor receipt and approval, Project Managers will provide the permit
        holder with a status update on project expenditures by annual budget categories, showing actual
        invoiced charges (per APCD Staff and Contractor Billings) on a year-to-date cumulative basis, and
        an itemization of approximate planned and out-of-scope charges. The spreadsheet          format
        shown in Attachment 3 should be used along with a brief transmittal cover letter.

Attachments (3)




                                                 6-222
                                               Attachment 1

                                   Cost Reimbursable Projects
                       APCD Planned and “Out-of Scope” Project Activities List
                                    (Revised September, 1996)


Planned Activities

Definition:       Routine, planned, anticipated, recurring tasks or activities that fall within the
                  normal baseline compliance effort by the APCD. Task/activity was known at the
                  time of fiscal year budgeting.

Project management duties/ fiscal duties
Quarterly compliance report reviews/comments
SCDP tracking (if budgeted)
Routine compliance/enforcement issues
Offset tracking
Source testing - normal
DAS/CEMs tracking/enforcement/QAQC
Inspections - normal
Permitting - scheduled (reevals, Title V, PTO permits)
Permit database tracking (where applicable)
Air Quality Monitoring - normal
DAS maintenance/administration - normal
APCD County Counsel - project related charges
New rules implementation - normal
Any other planned activities meeting definition above

“Out-of-Scope” Activities

Definition:       Non-routine, unplanned, and infrequent or non-recurring tasks or activities
                  that fall outside of “normal” baseline compliance effort by the APCD.
         Task/activity was not known at the time of fiscal year budgeting.

Hearing Board variances, appeals, and abatement orders
Permitting - ATCs; ATC and PTO modifications (includes pre-application activities)
Rule 505 Breakdowns
Unanticipated and/or major enforcement issues
SCDP tracking /inspections
Source testing special issues (non-compliance; retesting )
Source inquiries that require substantial research or follow up
Emergencies
CEQA - project related
Unanticipated AAQ Monitoring or DAS issues
Unanticipated new rule implementation issues - project related
Special studies (e.g. Fugitive HC emission factor committee)
Any other activities meeting definition above




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Attachment 2




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Attachment 3




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