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HomeMy WebLinkAbout11. Att. 1 - Final Draft FY 2018-19 District Budget 1 CENTRAL SAN - Attachment 1 FY2018- 19 BUDGE I � � • +r ♦ wr+n� .-Aml docs 0 CENTRAL SAN CENTRAL , a Page 10 of 264 2 June 7, 2018 Regular Board Meeting Agenda Packet- Page 129 of 446 Page 11 of 264 Board of Directors A - David R.Williams TadJ.Pilecki Michael R.McGill JamesA.Nejedly Paul H.Causey President Pro Tem Director Director President Director DISTRICT MANAGEMENT Roger S. Bailey General Manager Ann Sasaki Deputy General Manager, Director of Operations Philip Leiber Director of Finance and Administration Jean-Marc Petit Director of Engineering and Technical Services Katie Young Secretary of the District Kent Alm District Counsel 3 June 7, 2018 Regular Board Meeting Agenda Packet- Page 130 of 446 Page 12 of 264 Page Intentionally Blank 4 June 7, 2018 Regular Board Meeting Agenda Packet- Page 131 of 446 Page 13 of 264 Table of Contents GeneralManager Budget Message......................................................................................................................7 DistrictOverview............................................................................................................................................................l l Vision,Mission,and Values...........................................................................................................................................12 OrganizationalStructure.................................................................................................................................................13 StrategicPlan Summary..................................................................................................................................................14 Effective Utility Management Attributes........................................................................................................................15 FY2018-20 Strategic Plan..............................................................................................................................................16 FinancialOverview..............................................................................................................................................23 FinancialPlanning Policies.................................................................................................................................25 FiscalReserves Policy....................................................................................................................................................25 Basisfor Budgeting.........................................................................................................................................................25 Debt Management and Continuing Disclosure Policy....................................................................................................26 InvestmentPolicy...........................................................................................................................................................26 BudgetCalendar Process................................................................................................................................................27 KeyBudget Events.........................................................................................................................................................28 CurrentFinancial Plan....................................................................................................................................................29 FinancialSummary.............................................................................................................................................31 Sourcesof Funds.............................................................................................................................................................32 SewerService Charge(SSC)..........................................................................................................................................35 Useof Funds...................................................................................................................................................................38 O&M Budget Overview..................................................................................................................................................39 Staffing, Salaries,and Benefits.......................................................................................................................................41 BudgetedFull Time Equivalents.....................................................................................................................................44 Staffing Changes from Classification Study...................................................................................................................44 Variancesin the O&M Budget........................................................................................................................................45 OperatingDepartments...................................................................................................................................................48 Historical Variances in O&M Spending.........................................................................................................................49 Capital Improvement Budget(CIB)................................................................................................................................50 ReserveProjections.........................................................................................................................................................51 DebtService....................................................................................................................................................................53 Long-Term Spending Trend............................................................................................................................................54 OperatingDepartments......................................................................................................................................55 AdministrationDepartment.............................................................................................................................................57 Engineering and Technical Services Department...........................................................................................................87 OperationsDepartment.................................................................................................................................................103 Self-Insurance Program.................................................................................................................................... 125 CapitalImprovement Program........................................................................................................................ 133 Ten-Year Capital Improvement Plan..............................................................................................................219 DebtProgram....................................................................................................................................................233 Supplemental Data and Glossary.....................................................................................................................239 5 June 7, 2018 Regular Board Meeting Agenda Packet- Page 132 of 446 Page 14 of 264 Page Intentionally Blank 6 June 7, 2018 Regular Board Meeting Agenda Packet- Page 133 of 446 Page 15 of 264 General Manager Budget Message �- Board of Directors: - I am pleased to present the Central Contra Costa Sanitary District's (Central San)Fiscal Year(FY) 2018-19 combined budget. The budget format improves ease of use and increases transparency as it combines the Operations and Maintenance, Capital Improvement, Self-Insurance, and Debt Service Budgets in one document. zx Foundation for Success During the current fiscal year, Central San has worked to set a solid 14 _ foundation for the coming years with the integration of several key planning documents. These plans include an updated two-year Strategic Plan,an updated financial plan for a review of the second-year rate adjustment ,,. approved last year for FY 2018-19,and an updated proposed Ten-Year Capital Improvement Plan(CIP). The updated CIP includes further �.0 prioritization in concert with a concentrated effort to minimize costs while still meeting critical infrastructure needs set forth in the Comprehensive Wastewater Master Plan. We have continued the theme of continuous improvement and optimizing business processes through the establishment of .' an internal audit function,implementation of new software programs to gain efficiencies,and recognition as one of a select number of"Leading Utilities of the World"inductees. These improvements will serve to enhance our business practices, control operating costs,and provide another year of a flat operating budget. As Central San considers switching to CalPERS for its health insurance .. coverage, significant savings are expected from the transition to more cost- effective employee/retiree healthcare plans. This change will provide the same coverage at a reduced cost through membership in a larger risk pool.As Central San implements several large-scale projects in both the treatment plant and collection system to replace aging infrastructure, our continued focus on financial discipline will aim to achieve our goals while keeping rates __ competitive. Our effort to do so is made more visible with this enhanced �'~ budget document,which follows best practices in terms of transparency and alignment with our planning documents. t AW / Acknowledging our Past Success The past fiscal year has been productive and successful for Central San. - Every division of our team has effectively fulfilled our Strategic Plan goals, while maintaining the best reliability record and customer service _ standards in the Bay Area. We are extremely proud of the work we do, and year after year we strive to be better, holding ourselves to the highest levels of efficiency and effectiveness. Aligned with six of our FY 2017-18 goals, here is a list of some of our major accomplishments: 7 June 7, 2018 Regular Board Meeting Agenda Packet- Page 134 of 446 Page 16 of 264 General Manager Budget Message ►Provide exceptional customer service ►Develop and retain a highly trained and • Successful completion of the third Central San innovative workforce Academy, a program which focuses on educating • Completed Recruitment Training for all District our customers on the mission of Central San and employees. how it is fulfilled. • Held various human resource topic related • Hosted a week-long collection drive for the 20ffi "brown bag"sessions for all District employees. Anniversary of the Household Hazardous Waste • Held the second Management Academy and Collection Facility(HHWCF), leading to our started the second Supervisory Academy. highest customer participation level in 20 years. • Implemented the Central San Mentorship • Developed household hazardous waste Program on an annual basis. educational videos that promoted important • Completed the Roles and Responsibilities of Central San programs and services reaching tens Public Employees Training for all District of thousands of viewers. employees. • Increased the reach of our student pollution • Negotiated Kaiser Permanente and Delta Dental prevention educational programs. These students rate decreases of 5%and 4%,respectively, for FY will play a role in reducing pollution and 2017-18 premium rates,resulting in an annual supporting the environment for decades to come. savings of$297,130. • Focused outreach efforts to showcase completion • Partnered with the California Water Environment of major infrastructure projects that will increase Association(CWEA)to assist in the development reliability and add value for customers. of the state-wide CWEA Testing Program. ►Strive to meet regulatory requirements ►Maintain a reliable infrastructure • Twenty consecutive years of 100%compliance • Completed construction of the Pleasant Hill- with our National Pollutant Discharge Grayson Creek Trunk Sewer Project,whose Elimination System permit. scope of work included installation of up to • Increased collection at the HHWCF and 10,000 feet of trunk sewers. pharmaceutical drop-off sites. • Completed construction of two treatment plant • Reduced sanitary sewer overflows. projects: Pump and Blower Building Seismic Upgrades and the Co-Gen Optimization Project. ►Be a fiscally sound and effective water . Cleaned 759 miles of sanitary sewers and sector utility televised 167 miles of sanitary sewers. • Maintained a AAA credit rating with Standard& Poor's. ► Embrace technology, innovation, and • Established a combination trust for Pension and environmental sustainability Other Post-Employment Benefits(OPEB). Successfully renegotiated a Memorandum of • Established a new IRS Section 115 Pension Trust Understanding with Contra Costa Water District and funded$5.4 million toward unfunded and Santa Clara Valley Water District to liabilities. investigate the feasibility of water/wastewater • Fully funded the OPEB actuarially determined agencies working together to use recycled water contribution and paid an additional$2.5 million to serve industrial customers to free up drinking toward the unfunded liability. water supply. • Seventeen consecutive years of receiving the Inducted into the Leading Utilities of the World Government Finance Officers Association award global network of the most successful and for financial reporting excellence. innovative water and wastewater utilities. 8 June 7, 2018 Regular Board Meeting Agenda Packet- Page 135 of 446 Page 17 of 264 General Manager Budget Message Setting Strategic Priorities The Budget reflects the Board's policies and provides the resources necessary to accomplish Central San's mission to protect public health and the environment, overcome our challenges, and achieve the goals laid out in the FY 2018-20 Strategic Plan. Central San is committed to improving the quality of services we provide to our customers and will positively respond to the following challenges: Challenge Primary Response Maintaining and upgrading aging infrastructure, Implement the recommendations of the including increasing capital improvement Comprehensive Wastewater Master Plan investment and the internal resources to deliver (CWMP)with significantly increased capital on these increased levels of capital spending. investment beginning in FY 2018-19. Addressing concerns and educating customers Continue commitment to customer outreach, regarding required revenue/resources to replace prioritization of CIP, balance capital spending aging infrastructure and meet regulatory with affordability/rate impact concerns, and requirements. continue to focus on the most cost effective alternatives to maintain reliability and meet regulatory requirements. Increasing stringent air regulation requirements. Anticipate changing regulations and plan for cost-effective alternatives to meet requirements. This is a continuing effort. The need for all water sector agencies to play a Partner with agencies to find water solutions role in maintaining a sustainable water supply benefiting the region and state. This includes with recent drought experiences and the looking for creative solutions such as water continuing effects of climate change. exchanges and increased interagency cooperation. This is a continuing effort. Ever-increasing focus on resource recovery and Test and plan for alternative processes, sustainability. equipment, and technology that are sustainable and cost effective. This is a continuing effort. Fostering employee engagement to meet the Recruit, train, and retain high quality employees. challenges laid out above. This is a continuing effort. Increasing cost of employee benefits. Recognizing that health insurance costs are a primary expense of employee and retiree benefits, the District is considering a switch to CalPERS health insurance with the goal of reducing costs without adversely impacting level of service. 9 June 7, 2018 Regular Board Meeting Agenda Packet- Page 136 of 446 Page 18 of 264 General Manager Budget Message Meeting our Strategic Goals The FY 2018-19 budget provides funding for Central San to continue progress in meeting the following goals set by the Board and outlined in the FY 2018-20 Strategic Plan: • Provide exceptional customer service and maintain an excellent reputation in the community • Strive to meet regulatory requirements • Be a fiscally responsible and effective wastewater utility • Recruit, develop and retain a highly trained and safe workforce • Maintain a reliable infrastructure • Embrace technology,innovation,and environmental sustainability Continuing Our Progress The FY 2018-19 budget will enable us to address our challenges and successfully complete the goals for FY 2018-19 outlined in our Strategic Plan, all while continually optimizing our operations. I want to thank the Board for providing the vision,resources, and support necessary to achieve these goals and respond to future challenges. I want to also thank our staff for working so diligently to develop this budget, which will ensure that we are well positioned financially to accomplish our goals. We recognize that the communities within our service area rely on us for a very basic but critical service. Accordingly, the proposed budget represents our commitment to serving them with excellence. By planning for the future, making sound financial decisions, implementing new technologies and processes, and maintaining a highly skilled and dedicated workforce, Central San will remain a world- class organization that provides our customers with exceptional service and value,now and well into the future. I Roger S. Bailey General Manager 10 June 7, 2018 Regular Board Meeting Agenda Packet- Page 137 of 446 Page 19 of 264 District Overview Introduction Suisun Bay Central San was established in 1946 and is located about 30 miles east of San Francisco. ` ;- 4', Pittsburg Martinez Ab Central San provides wastewater services for approximately 484,200 residents and more `"� Concord than 3,000 businesses in central Contra Costa Pleasant Hill County. The service territory covers 182 square Clayton miles. This area includes Alamo,Clyde, Walnut Creek Danville, Lafayette,Martinez,Moraga, Orinda,Pacheco, Pleasant Hill, San Ramon, 24' Lafayette Orinda IT Walnut Creek, and unincorporated areas c, within central Contra Costa County.Central San also treats wastewater for residents of Concord and Clayton under a 1974 contract Danville with the City of Concord. Oakland San Ramon a N Central San serves 484,200 customers. Sewage collection and wastewater treatment; Household Hazardous Waste (HHW) disposal for 344,600 people. These services are provided over a 145-square-mile area. Wastewater treatment&HHW disposal far 140,900 people in Concord &Clayton by contract. These services are provided over a 30-square-mile area. HHW disposal only. These services are provided over a 9-square-mile area. Central San headquarters,treatment plant,HHW Facility and Residential Recycled Water Fill Station. Collection System Operations headquarters. Central San operates and maintains more than 1,500 In addition to its wastewater and recycled water miles of sewer pipelines, 18 pumping stations,and a responsibilities,Central San operates and maintains wastewater treatment plant that cleans and disinfects an HHW Collection Facility that collects,recycles, an average of 34 million gallons of wastewater per or safely disposes of more than 2 million pounds of day.Most of this treated effluent is discharged into hazardous waste from approximately 24,000 Suisun Bay.Approximately 2.5 million gallons per residential and small business customers each year•, day receives further treatment to produce recycled and a Pharmaceutical Collection Program with 13 water that is ideal for non-potable purposes such as locations that collect and safely dispose of more than landscape irrigation and industrial processes. 12,500 pounds of unwanted drugs each year. Since its inception in October 2014,Central San's Residential Fill Station has distributed nearly 21 million gallons of recycled water to our residential customers. 11 June 7, 2018 Regular Board Meeting Agenda Packet- Page 138 of 446 �CCCSd CENTRAL SAN C EN TRAL CON TRA COSTA SANJTARY D1STRiCT VISION , MISSION , VALUE I S OUR VISION To be a high-performance organization that provides exceptional customer service and regulatory compliance at responsible rates OUR MISSION To protect public health and the environment OUR VALUES People Community Principles Leadership and •Value customers •Value water sector • Be truthful and honest Commitment and employees partners . Be fair,hind and • Promote a passionate and • Respect each other a Fosterexcellent friendly empowered workforce ■Work as a team community relationships ,Take ownership and • Encourage continuous •Work effectively ■ Be open,transparent responsibility growth and development and efficiently and accessible • Inspire dedication and •Celebrate our ■ Understand service top-quality results successes and learn level expectations • Provide a safe and from aur challenges . guild partnerships healthful environment �� • �� �ir r �y l Page 21 of 264 Organizational Structure Central San is governed by a Board of Directors whose five members are elected at-large on a non-partisan basis and serve a four-year term. The Board appoints the General Manager, the Counsel for the District, and the Secretary of the District. Central San is organized into three departments: Finance and Administration, Engineering and Technical Services, and Operations. The District currently has 290 budgeted full-time employees. This team of employees is led by a General Manager, a Deputy General Manager, two Department Directors, and 12 Division Managers. Central San's main headquarters, Board Room, and treatment plant are located at 5019 Imhoff Place in Martinez. Central San's collection system operations are headquartered at 1250 Springbrook Road in Walnut Creek. 13 June 7, 2018 Regular Board Meeting Agenda Packet- Page 140 of 446 Page 22 of 264 Strategic Plan Summary For FY 2018-20, Central San has developed a two-year Strategic Plan that establishes policy direction that will enable Central San to increase efficiencies and continue in its role as a steward of the environment. The Strategic Plan outlines Central San's core commitments, focused initiatives, and key performance measurements. The strategic goals reflect the opportunities and challenges that many water sector agencies face as we strive to increase quality and minimize the cost of services to our customers. These include the following: • Enhanced customer expectations and • Security and emergency response public awareness concerns • Aging infrastructure • Sustainable regional water supply • Stringent regulatory requirements • Increased focus on resource recovery • Financial constraints The strategic goals and initiatives were developed using the Effective Utility Management (EUM) framework as an overarching tool. The EUM was originally developed by the Environmental Protection Agency and several major water sector associations in 2007. The framework is made up of 10 attributes which provide a succinct indication of where effectively managed utilities should focus and what they should strive to achieve. 14 June 7, 2018 Regular Board Meeting Agenda Packet- Page 141 of 446 Page 23 of 264 Effective Utility Management Attributes Product Quality Infrastructure Strategy and Performance Produces "fit for purpose"water that meets or Understands the condition of and costs exceeds full compliance with regulatory and associated with critical infrastructure assets. reliability requirements and is consistent with customer, public health, ecological, and Enterprise Resiliency economic needs. Ensures utility leadership and staff work together internally, and with external partners, Customer Satisfaction to anticipate, respond to, and avoid problems. Provides reliable, responsive, and affordable services in line with explicit, customer-derived Water Resource Sustainability service levels. Ensures the availability and sustainable management of water for its community and Employee and Leadership Development watershed, including water resource recovery. Recruits and retains a workforce that is competent, motivated, adaptive, and safety Community Sustainability focused. Takes an active leadership role in promoting and organizing community sustainability Operational Optimization improvements through collaboration with local Ensures ongoing, timely, cost-effective, reliable, partners. and sustainable performance improvements in all facets of its operations in service to public Stakeholder Understanding and Support health and environmental protection. Engenders understanding and support from stakeholders (anyone who can affect or be Financial Viability affected by the utility), including customers, Understands the full life-cycle cost ofutility oversight bodies, community and watershed operations and the value of water resources. interests, and regulatory bodies for service levels, rate structures, operating budgets, capital improvement programs, and risk management decisions. Connecting Effective Utility Management with District Strategic Plan and Initiatives The following table summarizes the goals, strategies, and initiatives outlined in the FY 2018-20 Strategic Plan. It allows alignment between each initiative,the EUM attribute, and our core values. For a complete copy of the Strategic Plan, including initiatives and key performance metrics, please visit centralsan.org. 15 June 7, 2018 Regular Board Meeting Agenda Packet- Page 142 of 446 Page 24 of 264 FY2018-20 Strategic Plan A jnt Reputation in the Community Strategy Initiative E U M Attribute District Values Provide high-quality customer service. Customer People, Satisfaction Community Invest in business process changes Customer and technologies to effectively increase Satisfaction, Leadership and access to District information and Operational Commitment Build External promote customer care, convenience, Optimization Customer and self-service. Relationships and Awareness Increase customer understandingand Stakeholder People, support for key District initiatives, Understandingand programs, and services. Support Community Build and maintain relationships with Stakeholder federal, state, and local elected officials Understanding and Community and stakeholders. Support Establish opportunities for internal Enterprise partnerships and cross-divisional People Foster Employee collaborations. Resiliency Engagement and Interdepartmental Employee and Collaboration Cultivate employees' understanding of Leadership District operations and their role in the Development, People, Community agency's success. Enterprise Resiliency Continue to participate in industry trade Employee and People, organizations and apply for Leadership Community, certifications and awards. Development Leadership and Commitment Maintain a Strong Reputation in the Continue to participate in CalWARN to Community Community, Principles Community provide mutual aid to sister agencies. Sustainability Minimize impacts to residents and Customer People, businesses during maintenance or Satisfaction Community construction work. 16 June 7, 2018 Regular Board Meeting Agenda Packet- Page 143 of 446 Page 25 of 264 Goal 2 -Strive to Meet Regulatory Requirements Strategy Initiative EUM Attribute District Values Meet existing regulations. Product Quality Principles Foster relationships with regulatory Stakeholder agencies. Understanding and Community Strive to Achieve Support 100% Permit Compliance in Air, Track proposed and pending legislation Stakeholder Water, Land and or regulatory changes; plan for possible Understanding and Community Other Regulations implementations. Support Actively manage greenhouse gas (GHG) emissions in the most cost- Community Principles effective and responsible manner. Sustainability Complete the collection system Infrastructure Leadership and scheduled maintenance on time and Strategy and Commitment optimize cleaning schedules. Performance Strive to Minimize the Number of Sanitary Sewer Continue the pipeline condition Overflows assessment and cleaningquality Infrastructure q Y Leadership and assurance program using the system- Strategy and Commitment wide CCTV program. Performance Review all existing Board Policies every Enterprise Comply with All two years to ensure relevancy. ResiliencyPrinciples Federal, State, and Local Regulations Related to District Re-examine existing Department and Administration Administrative Procedures to ensure Enterprise compliance with applicable laws and Resiliency Principles regulations. 17 June 7, 2018 Regular Board Meeting Agenda Packet- Page 144 of 446 Page 26 of 264 . . . Strategy Initiative EUM Attribute District Values Ensure rate structure and fees are Customer consistent with cost-of-service Satisfaction, Community, Principles principles. Financial Viability Present alternative financial plans to the Board in FY 2018-19 for necessary rate adjustments for FY 2019-20 Financial Viability, Conduct Long- Infrastructure Range Financial onward, including considering the Strategy and Community, Principles Planningpotential issuance of debt to fund the CIP in conjunction with the overall Performance financial plan. Develop alternatives for new revenues and funding sources (e.g., interagency Leadership and agreements, services, and recycled Financial Viability Commitment water). Effectively manage the cost of Community, employee benefits. Financial Viability Principles Carry out targeted audits of Operational People, critical/high risk functions or Optimization, Principles, Enterprise Leadership and processes. Resiliency Commitment Manage Costs Re-engineer business processes and Operational People,complete optimization studies to Optimization, Leadership and identify opportunities to reduce costs Enterprise Commitment and align with best practices. Resiliency Evaluate and apply risk management Enterprise Principles practices to minimize loss. Resiliency 18 June 7, 2018 Regular Board Meeting Agenda Packet- Page 145 of 446 Page 27 of 264 7trategyInitiative EUM Attribute District Values Employee and People, Assess,develop,and implement Leadership Leadership and Ensure Adequate District-wide training needs. Development Commitment Staffing and Training to Meet Current and Future Operational Levels Recruit, develop, and train our future Employee and People, leaders. Leadership Leadership and Development Commitment Employee and People, Cultivate a positive work culture. Leadership Leadership and Development Commitment Enhance Relationships with Employees and Employee and Bargaining Units Sustain and grow collaborative Leadership People, Community, relationships with the labor Development, bargaining units. Enterprise Leadership and Resiliency Commitment Achieve consistent improvement on Employee and People, State of California and Bay Area Leadership Principles, Leadership industry injury rate. Development and Commitment Meet or Exceed Industry Safety Standards Enhance the safety culture through Employee and People, improved training and Leadership Principles, Leadership communications. Development and Commitment 19 June 7, 2018 Regular Board Meeting Agenda Packet- Page 146 of 446 Page 28 of 264 •. M Strategy Initiative EUM Attribute District Values Develop Ten -Year CIP consistent with recommendations of the Infrastructure Comprehensive Wastewater Master Strategy and Leadership and Commitment Plan and Asset Management. Performance Manage Assets Optimally Continue maintenance on assets Infrastructure Throughout Their using a reliability-based approach. Strategy and Leadership and Lifecycle Performance Commitment Manage current vehicle fleet to Infrastructure Leadership and provide maximum value. Strategy and Commitment Performance Integrate data from the Asset Management Program into the Infrastructure analysis of long-term Capital Strategy and Leadership and Commitment Improvement needs based on the Performance Facilitate Long- Ten -Year CIP. Term Capital Renewal and Replacement Operational Optimization, Implement the Program Management Infrastructure People, Information System (PMIS). Strategy and Leadership and Performance Commitment Enhance capability to mitigate, Enterprise prepare for, respond to, and recover Principles from emergencies. Resiliency Protect District Evaluate and implement appropriate Personnel and p improvements to the Security Enterprise les Assets from Program to meet new or evolving Resiliency Principles Threats and threats. Emergencies Improve the potable water system and Community, enhance water quality testing Product Quality Leadership and procedures. Commitment 20 June 7, 2018 Regular Board Meeting Agenda Packet- Page 147 of 446 Page 29 of 264 Strategy Initiative EUM Attribute District Values Water Resource Explore partnering opportunities. Sustainability, Community Community Sustainability Continue to support the development Water Resource Augment the Community, Region's Water of a demonstration Satellite Water Sustainability, Leadership and Supply Recycling Facility at Diablo Country Community Commitment Club. Sustainability Continue to provide recycled water to Customer Service residents and businesses; evaluate Satisfaction, Community and process new customer requests. Water Resource Sustainability Reduce Reliance on Explore opportunities for renewable Non-Renewable energy generation, conservation, and Community Leadership and Energy efficiency based on the Board's Sustainability Commitment Energy Policy. Select and implement new Enterprise Resource Planning (ERP)system Operational Leadership and and integrate with linked systems. Optimization Commitment Encourage the Expand and improve the use of Operational Review and Testing worthwhile mobile computing and Optimization Leadership and Commitment of Technology to communication technologies. Optimize and Modernize Business Continue developing and investing in Operations cost-effective innovation, leadingand Operational Leadership and promising technology, and applied Optimization Commitment research and development. 21 June 7, 2018 Regular Board Meeting Agenda Packet- Page 148 of 446 Page 30 of 264 Page Intentionally Blank 22 June 7, 2018 Regular Board Meeting Agenda Packet- Page 149 of 446 Page 31 of 264 Financial Overview Central San uses an enterprise fund to account for its operations. We currently have one enterprise fund, which is comprised of four internal sub-funds: • Operations and Maintenance (O&M) Running Expense Fund - This fund provides for the general operations, maintenance, and administration of Central San. Sewer Service Charge (SSC) revenues are collected by the Contra Costa County Tax Assessor's Office and are remitted to Central San in two installments in April and December of each year. Central San provides several services, including wastewater treatment to its customers and the Cities of Concord and Clayton. Central San is reimbursed annually for the treatment services provided to these two cities. In order for Central San to pay its ongoing expenses throughout the year, it reserves five months (41.7%) of its gross operating expenditures at the start of each fiscal year. • Sewer Construction Fund (Capital Fund) - This fund provides for treatment plant and collection system asset renewal and replacement expenditures, as well as office facilities renewal,vehicle and equipment replacement, information systems replacement, and miscellaneous capital expansion needs. The City of Concord reimburses Central San for a flow-proportional share of the expenses related to projects impacting the services the City has contracted with Central San to provide. Property tax (ad valorem taxes) and SSC revenues, which comprise a significant portion of annual capital project revenues, are also collected by the Contra Costa County Tax Assessor's Office and remitted to Central San in two installments in April and December of each year. In addition, connection fees received from permits are allocated to the capital fund. In order to meet the cash flow needs of the capital projects program, Central San reserves 50% of the annual cash-funded portion of the capital projects budget at the start of each fiscal year. In FY 2018-19, the entire Capital Projects budget will be funded from revenues. The Capital Projects section of this document provides a table showing the various sources of revenue funding for each type of capital project. In future years, the financial plan anticipates a portion of the Capital Projects budget will be funded with bond proceeds. • Self-Insurance Fund (SIF) - This fund accounts for interest earnings on cash balances in this fund and cash allocations from other funds, as well as for costs of insurance premiums and claims not covered by Central San's insurance coverage. Central San has self-insured a portion of its liability and property risks since July 1, 1986, when the Board approved the establishment of the SIF. Central San is self-insured for three events up to $500,000 per occurrence for its general and automobile liability program, for a total of$1.5 million. Maintaining a self-insured retention reduces Central San's insurance premium expense. In order to help mitigate the financial impacts and maintain uninterrupted service in the event of an emergency or catastrophic event, Central San maintains an Emergency Fund Reserve balance of$5 million in the SIF. Actuarial studies are performed every other year and are used to set the Governmental Accounting Standards Board (GASB) 10 liability amount. • Debt Service Fund - This fund accounts for activity associated with the payment of Central San's long-term bonds and loans. Central San's total debt service for FY 2018-19 is $3.6 million, a decrease of approximately $0.2 million from the $3.8 million budgeted in FY 2017-18. This decrease is due to the final amortization payment of the recycled water loan in FY 2017-18. A portion of Central San's ad valorem tax revenue is the primary funding source for the Debt Service Fund. 23 June 7, 2018 Regular Board Meeting Agenda Packet- Page 150 of 446 Page 32 of 264 Page Intentionally Blank 24 June 7, 2018 Regular Board Meeting Agenda Packet- Page 151 of 446 Page 33 of 264 Financial Planning Policies The significant policies that play a role in managing Central San's finances are summarized below: Fiscal Reserves Policy There is a strong emphasis placed on maintaining adequate reserves, and having a reserve policy ensures long-term financial stability. In 2015, the Board adopted Board Policy No. BP 017-Fiscal Reserves,which set targets for each of Central San's reserve funds. This policy was reviewed and updated by the Board during FY 2017-18. Key provisions remained generally unchanged, with updates primarily focusing on providing detail about the usage of the reserves and recognizing new accounts since the initial policy. Fiscal reserves provide working capital for operations and maintenance activities; funding for long-term capital improvement requirements; fulfillment of legal, regulatory, and contractual obligations; mitigation of risk and liability exposures; and cash flow emergencies. Table 12 shows projected reserve balances as of June 30, 2018 and June 30, 2019. • O&M Fund - Working Capital Reserves, the Board has set a target of five months (41.7%) of gross operating expenses at the start of each fiscal year. • Sewer Construction Fund (Capital Improvement) - Working Capital Reserves, the Board has set a target of 50%of the annual capital projects budget at the start of each fiscal year, excluding capital projects that are to be funded with bond proceeds. • Self-Insurance Fund Reserves - The Board has set a target of three times the annual retention, currently at $500,000. In addition, to help mitigate the financial impacts and maintain uninterrupted service in the event of an emergency or catastrophic event, Central San maintains an Emergency Fund Reserve balance of$5 million in the self-insurance fund. • Debt Service Reserve (Bond Reserve) - The 2009 certificates of participation(a type of borrowing) require the establishment and maintenance of a contingency reserve that is defined in the loan documents. The balance of the reserve is set at the amount required in the loan documents, typically one annual payment per loan. The Bond Reserve balance was $4.86 million as of June 30, 2017 and is forecasted at $4.86 million for both June 30, 2018 and 2019. Basis for Budgeting Central San's Comprehensive Annual Financial Report (CAFR)provides detail about the actual expenditures of the four sub-funds in the Central San enterprise fund. The basis of budgeting for these sub-funds is the accrual basis of accounting, the same that is used in the audited financial statements and CAFR. Through this budget and its adoption by the Board, funds are appropriated to each of the four sub-funds. Each of the sub-funds presents a budget in the form of revenues, expenses, and an overall contribution to or draw, from reserves. Central San has adopted the reserve policies noted above and may as a result, collect more or less revenues than budget-year expenditures, due to contributions to or draws from the reserves, in compliance with the Reserve Policy. Central San strives to present a "balanced budget" each year, which we define as a budget in which: Budgeted revenues and planned draws from the applicable reserve meet or exceed budgeted expenditures, and where any planned draws from the reserve will leave the reserve at or above the policy targeted level. 25 June 7, 2018 Regular Board Meeting Agenda Packet- Page 152 of 446 Page 34 of 264 Financial Planning Policies Debt Management and Continuing Disclosure Policy In August 2017, the Board adopted Board Policy No. BP 029—Debt Management and Continue Disclosure, which sets the parameters for the responsible and prudent use of debt to fund a part of Central San's capital spending in the coming years. In recent years, Central San has primarily used a pay-as-you-go philosophy but has occasionally used some debt financing for large capital improvements brought about by regulatory changes or other unforeseen factors. The newly adopted debt policy provides for the conservative use of debt. The funding allocated towards pipeline replacement in general, is to be collected through Sewer Service Charge (SSC)rates or taxes, while debt is permitted for the remaining portion of the capital projects. Currently, Central San is repaying a State of California Water Reclamation Loan and 2009 Revenue Bonds. As of June 30, 2017, total outstanding debt associated with infrastructure improvements was $31.7 million. Central San's ten-year financial plan anticipates a bond offering (subject to Board approval)within the next five years,potentially as early as FY 2019-20. Debt restrictions currently include the following: • Revenue Pledge and Covenant—Central San pledges Property Tax Revenue, along with its ability to raise SSC rates. • Debt Service Coverage Ratios (DSCR) of at least 1.Ox(Net Revenue/Total Debt Service) and 1.25x(Adjusted Net Revenue/Total Debt Service) are adhered to. Central San's DSCR is strong and benefits from our current pay-as-you go philosophy. This favorable coverage ratio is a factor in Central San's very strong"AAA" (S&P) and"Aal" (Moody's) credit ratings. Investment Policy Central San's investment policy Board Policy No. BP 005 —Statement of Investment Policy, last updated in September 2017, is based on state law and prudent money management. All investments are in accordance with this policy and Sections 53646 and 53601 of the California Government Code. Central San has formal agreements with Contra Costa County, allowing them to act as Central San's banker and they invest all Central San funds. Securities are held in a custodial account separate from the County. The investment policy applies to all Central San funds and investment activities. The investment policy is presented to the Board annually, and its priorities are: safety, liquidity, and yield. The policy addresses issues such as permitted investments, banks and dealers, maturities, diversification, risk, delegation of authority,prudence, controls, reporting and performance evaluation. The GASB 45 Trust and Pension Prefunding Trust Investment Guidelines are also presented to the Board annually. The investments of these Trusts are longer-term investments,with the GASB 45 Trust adopting a"moderate" investment strategy, and the Pension Prefunding Trust adopting a"moderately conservative" investment strategy. With respect to both trusts, U.S. Bank is the Trustee, HighMark Capital is the Investment Manager, and Public Agency Retirement Services (PARS) is the Trust Administrator and Consultant. The IRS Section 115 Pension Prefunding Trust was adopted during FY 2017-18, and initially funded with $3.4 million. With the adoption of this trust, Central San may make optional payments to the Pension Prefunding Trust rather than a direct payment to the Contra Costa County Employees' Retirement Association (CCCERA), giving Central San greater retirement payment flexibility in the 26 June 7, 2018 Regular Board Meeting Agenda Packet- Page 153 of 446 Page 35 of 264 Financial Planning Policies future, while still reducing its overall pension liability. In December 2017 the Board allocated $2.0 million of the FY 2016-17 favorable budget variance to the Pension Prefunding Trust. In future years Central San may draw down the Pension Prefunding Trust to meet its payment obligations to CCCERA in order to smooth payment obligations and mitigate rate volatility. Budget Calendar and Process The budget development process for the upcoming year started midway through the current fiscal year, with the updated financial plan, then the discussion of the financial plan with the Board in a workshop held in March. Internal budget development commences during February, and extensive internal review of the proposed budget takes place during March. Several cycles ("passes") of budget development take place. Initial budget proposals are input in Pass 1, after which the General Manager, Director of Finance and Administration, and each division manager meet to review results. Required changes are input in Pass 2, and another review session is held. Final changes are input in the Final Pass. Development of the budget is finalized during April and May. A draft of the budget is provided to the Board in May. The Operations and Maintenance sections are reviewed by the Finance Committee, and the capital budget is reviewed by the Engineering & Operations Committee prior to Board adoption. The final budget is adopted by the Board in June. The budget process is also related to two other key planning processes: strategic planning, which covers a two-year window; and rate setting, which covers a ten-year window. FY 2018-19 is the first year of a new two-year strategic planning cycle. As a result, the strategic goals, strategies, initiatives, and metrics have been updated concurrent with the development of this proposed budget. The budget is developed to ensure that resources are available to achieve the goals set forth. Staff works with each other and the Board to ensure this alignment. The rate adjustment for FY 2018-19 was approved in a two-year rate plan adopted by the Board in 2017 for FY 2017-18 and FY 2018-19. The Board committed at that time to review the second year(FY 2018-19) rate during the spring of 2018. The Board did so in April 2018 and elected to retain the 7%rate adjustment. A conceptual diagram summarizing the budget and rate development process is provided below. As noted above, a rate-setting process is not conducted every year; for FY 2018-19, rates were established as part of a two-year rate adopted during FY 2016-17. JULYIOCTOBER • Identify Issues AO* • Prior Year SSC Placed on Tax Roll •Calculate Administrative Overhead MARCHIJUNE NOVEMBER/JANUARY •Conduct Board of Directors Meetings, • Refine Issues•Conduct Capital Budget Workshop Workshops and Board Committee Meetings . Develop Financial Projections •Capacity&Developer Fee Outreach • Update Capacity&Developer Related Fees, •Conduct Public Hearings Rates and Charges •Adopt Final Budget and Resolution • Update Recycled Water Rates JANUARY/MARCH •Conduct Financial Planning Workshop •Receive Board of Directors'Direction •Prepare Prop 218 Plan •Prop 218 Outreach 27 June 7, 2018 Regular Board Meeting Agenda Packet- Page 154 of 446 Page 36 of 264 Financial Planning Policies A calendar of key events during the current planning cycle for FY 2018-19 is provided below. Three critical business areas were revisited and updated simultaneously - the update of the two-year strategic plan, the development of the annual budget, and adjustment to Sewer Service Charge rates. Key Budget Events nancial Planning and � . Strategic Plain Budget Board approves revised January 2018 Mission, Vision, Values and Goals January-March Staff develops strategies, 2018 initiatives and performance metrics Departments/Divisions February 2018 develop and submit Operating Budget proposals Board Rate Workshop (review of Strategic Plan presented to General Manager reviews Financial Plan March 2018 the Administrative Operating Budget with including updates to Committee Departments/Divisions the Ten-Year CIP and Fiscal Year CIB) Draft Operating Budget finalized with Public Hearing on Board receives Strategic Departments/Divisions adoption of April 2018 Plan proposed rate Draft Ten-Year CIP finalized by Engineering increase Department Draft Operating Budget presented to the Finance Committee and the Board May 2018 Draft Ten -Year CIP Budget presented to the Engineering & Operations Committee and the Board Public Hearing on Public Hearing on adoption adoption of Capacity June 2018 Fees and of Final Budget Environmental and Development Fees Once the budget is adopted, the General Manager has the authority to spend within the overall budget. However, there are budgetary levels of control. The General Manager has the authority to spend up to the overall level of the Operations and Maintenance budget. Spending is monitored monthly by the Board; variances of more than 10% on individual budget line item categories are highlighted and subject to discussion by the Finance Committee. Certain expenditures over $100,000 require Board approval. 28 June 7, 2018 Regular Board Meeting Agenda Packet- Page 155 of 446 Page 37 of 264 Financial Planning Policies For the Capital Improvement Program, budgets are set by project, on an annual basis. The General Manager has the authority to reallocate funds up to $500,000 between projects. Reallocations above that amount require approval by the Board. Additionally, the General Manager has the authority to spend up to the budgeted amounts for Debt Service. The General Manager may also spend Self-Insurance Reserve funds to pay claims and claims expenses within the self-insured retention ($500,000) during the fiscal year. Payments are governed by the limits set in the General Manager Delegation of Authority. Should it become necessary to spend more than the overall O&M budget amount, formal action by the Board would be required to adopt an amended budget. With respect to the Capital Budget, the General Manager has the authority to transfer up to $500,000 of the budget from one approved project to another. The Capital Budget also includes a $1.5 million contingency, which is subject to the same General Manager transfer limits. Transfers above that amount, or the creation of a new, unbudgeted capital project,would require approval by the Board. Monthly financial statements are issued internally and to the Board. Monthly and annual variance explanations are presented to the Board. The Board also reviews annual variance explanations and determines how available funds from favorable variances are used. For FY 2016-17, variances of$8.8 million from favorable revenue and expenses were applied to two uses, after ensuring that reserve balances were at or above the levels required in the reserve policy. In FY 2017-18, an additional $2.0 million was contributed to the Pension Prefunding Trust to reduce outstanding pension-related liabilities, and $6.8 million was applied to the Sewer Construction Reserve to fund capital expenditures which reduce the need for borrowing for such expenditures in FY 2019-20. Current Financial Plan Central San has a multi-year financial plan that projects anticipated spending, debt issuances, customer data, tax collections, and resulting rate increases. Factors considered in the long-range forecast include the impact of state legislation and mandates, regulatory compliance, GASB requirements, negotiated or forecasted salary increases and employee benefit changes (including anticipated changes in health care and retirement costs), energy costs, development in the service area, and infrastructure renewal and replacement needs. The financial plan undergoes substantial development and review by staff, and various scenarios are presented to the Board in the context of discussions about the need for rate adjustments and potential bond issuances. The financial plan covers a period of twenty years, although assumptions for the first ten years of the plan carry a higher degree of confidence than for the outer years in the plan. The financial plan reflects the proposed Ten-Year Capital Improvement Plan(CIP) spending levels identified in the Comprehensive Wastewater Master Plan(CWMP), as updated during a review of the spending plan conducted in early 2018. The CIP spending levels have been revised downward from the initial CWMP which projected $873 million of spending over the ten-year period commencing in FY 2017-18, to $806 million over the ten-year period commencing in FY 2018-19. This reflects a detailed assessment of Central San's latest needs and capacity to ramp up CIP spending from the current levels. The financial plan also funds the initiatives addressed in the updated Strategic Plan. Accordingly, Central San's various planning documents are integrated and consistent. This budget document reflects the detailed and refined estimate of the costs included in the multi-year financial plan. Once developed, the proposed budget is input as a baseline in the financial plan, and future year's costs may be updated accordingly. Many costs in the financial plan are projected based on inflation and other cost-growth factors of the latest available budget year. Known or anticipated cost savings or increases are also provided for in the Financial Plan. A key cost change anticipated for FY 2019-20 relates to an expected 29 June 7, 2018 Regular Board Meeting Agenda Packet- Page 156 of 446 Page 38 of 264 Financial Planning Policies transition to Ca1PERS healthcare,providing savings estimated at $5.6 million annually. Savings may accrue to Central San during FY 2018-19, depending on the implementation date of the transition. Central San has conservatively assumed $306,000 of explicit savings from this transition during FY 2018-19. In addition, Central San has not increased the budgeted costs to pay for the current health care plans,which are still in place. While such cost adjustments are customary and will likely occur, the assumption is that increased costs in the first part of the year will be offset by reduced costs after the healthcare plan transition to Ca1PERS, or by holding the line on spending on labor, including keeping certain positions vacant if necessary. 30 June 7, 2018 Regular Board Meeting Agenda Packet- Page 157 of 446 Page 39 of 264 Financial Summary Financial Summary The FY 2018-19 budget provides the resources necessary to advance the Strategic Plan and meet the challenges Central San faces as it strives to increase service quality and minimize cost. At the same time, the budget allows Central San to accomplish its mission in the most cost-effective and financially sustainable manner to ensure the best value to its customers. Central San's FY 2018-19 total budget is $139.6 million, representing an increase of$2.3 million, or 1.7%,compared to the FY 2017-18 budget of$137.2 million. As shown in Table 1, the driver for the increase in the total budget is a 5.9% increase in sewer construction investment from $42.8 million in FY 2017-18 to $45.3 million in FY 2018-19. The FY 2018-19 O&M Budget is $89.7 million,which is unchanged from the current FY 2017-18 Budget of$89.7 million. Salaries and wages increased by 2.2%, which includes an assumed cost-of-living adjustment offset by an increase in the vacancy factor from 3 to 4%. This is also offset, in part, by reductions in benefit/unfunded liability costs, so total labor- related costs decrease by$0.2 million. The reduction in salary and benefit costs is offset by a$0.2 million increase in all other costs. Chemicals and utilities decreased by $0.5 million, while costs for repairs and maintenance, outside services, and materials, supplies and other miscellaneous costs increased by $0.7 million. The Self-Insurance Fund is set at $924,500 for the costs of premiums and estimated losses based on historical trends and represents a slight reduction from the $936,500 funding level of the current year. Table 1 - FY 2018-19 Total Budget FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 • ' •:' Budget Actual Budget Budget Operations and Maintenance $ 89,810,918 $ 85,489,712 $ 89,713,587 $ 89,720,456 $ 6,869 0.00/0 Sewer Construction $ 36,808,756 $ 36,696,049 $ 42,774,000 $ 45,319,000 $ 2,545,000 5.9% Debt Service $ 3,790,807 $ 3,791,155 $ 3,819,099 $ 3,611,038 $ (208,061) -5.4% Self-Insurance $ 948,000 $ 697,793 $ 936,500 $ 924,500 $ (12,000) -1.3% Total Budgetl $ 131,358,481 $ 126,674,709 $ 137,243,186 $ 139,574,994 $ 2,331,808 1.7% 31 June 7, 2018 Regular Board Meeting Agenda Packet- Page 158 of 446 Page 40 of 264 Financial Summary Sources of Funds The sources of funds (revenues) for FY 2018-19, are shown in Figure 1. A comparison of the major revenue sources for FY 2018-19, the current year and prior years are shown in Figure 2. Figure 1 - Where the Money Comes From FY 2018-19 Total Budgeted Funding sources of: $ 147,386,287 OtherSources, Household Hazardous $6,358,696,4% Waste, $929,000,1% Recycl e d Water, Capacity Fees, $420,000,0% $5,900,000,4% Tax Re venue, $16,828,591, 11% Cityof Concord, �SewerServiceCharge, $21,950,000, 15% $95,000,000, 65% FY 2018-19 Total Funding Sources Figure 2 - Where the Money Comes From FY 2016-17 FY 2017-18 FY 2018-19 $131,343,455 $138,532,599 $147,386,287 Sources of Funds 5100,000,0x0 S90,0xx,000 — S80,000,0ox 570,000,000 S60,000,000 — S50,000,000 540,000,000 $30,000,000 - S20,000,000 ,I, s o n 510,000,000 Swer Service Charge Co of Concord Property Tax Revenue Capac ty Fees All Other Sources ■FY 2016.17 Budget 0 FY 2017-18 Budget a FY 2018-19 Budget 32 June 7, 2018 Regular Board Meeting Agenda Packet- Page 159 of 446 Page 41 of 264 Financial Summary The Sewer Service Charge (SSC) is the largest source of revenue at$95 million, followed by the City of Concord at $22 million, ad valorem property tax at $16.8 million, and Sewer Connection Fees (Capacity Fees and Pumped Zone Fees) at $5.9 million. A brief description of Central San's revenue sources and how they are forecasted follows: • Sewer Service Charge (SSC) - This fee is charged annually to residential and non-residential customers. For residential customers, separate rates are charged to single family and multi- family residences. Non-residential customers pay a proportionate charge based on their water use, size of facility, and the strength of the wastewater. SSC is estimated based on prior year collections and estimates of growth in the number of residential customers. For commercial and industrial customers SSC revenues are forecasted based on water consumption and strength of each use category. • City of Concord and Clayton - Central San revenues from the City of Concord and Clayton are calculated and billed in accordance with the terms of a contract agreement. The City of Concord is responsible for a share of Central San's treatment plant and associated costs, and their share is proportional to the overall flows to the treatment plant. The amount of revenue is forecasted annually for budgeting purposes by multiplying the City of Concord's estimated flow percentage by the budgeted treatment plant and associated costs. The amount due is invoiced by Accounting in August for the prior fiscal year. • Tax Revenue - Central San receives a share of Contra Costa County's collected ad valorem property taxes on properties within the service area. These taxes are used to pay debt service requirements, and the remaining funds are allocated to the CIP. • Capacity Fees—These are collected from new construction and expansion of non-residential and residential customers. The fee is calculated as an equity buy-in and assessed based on a per- residential-unit-equivalent basis, square footage, and type of usage for commercial facilities. The amounts due are collected before plans are approved. The budgeted amount is estimated by the Planning&Development Services Division based on trend analysis and anticipated construction activity for the upcoming year. • Household Hazardous Waste Reimbursement- Central San provides a facility where local residents and businesses within the service area may dispose of specified hazardous wastes. Additionally, residents from specified cities (Concord, Clayton, San Ramon, and parts of Martinez served by the Mt. View Sanitary District) also have the right to use the facility, and these cities pay a contractually agreed amount for this service. The amounts due are invoiced by Accounting in August for the prior fiscal year. The budgeted amounts are based on projected total costs of the facility, to be shared pro-rata by all users within the service area. • Recycled Water—This represents revenue from the sale of recycled water to customers in Central San's service area who have recycled water meters. The amounts due are invoiced by Accounting bi-monthly based on monthly meter readings. The Planning& Development Services Division forecasts the revenue from recycled water. • Other Sources include the following: o Permit and inspection fees - Fees for sewer permits, inspections, and related activities, including environmental compliance fees,plan review, and other than inspections of mainlines. The amounts are forecasted by the Development Services Supervisor based on anticipated construction activity for the upcoming year. o Lease rental income -Rental income from buffer properties (buildings and undeveloped land) owned by Central San and rented to third parties through multi-year agreements. Leases are reviewed by Accounting and Right-of-Way to identify any changes to multi- year lease rates. Budgeted lease revenue is based on the terms of those leases. 33 June 7, 2018 Regular Board Meeting Agenda Packet- Page 160 of 446 Page 42 of 264 Financial Summary o Stormwater/Pollution prevention -Fees collected from the County and certain cities for performing storm water inspections as required by the County's National Pollutant Discharge Elimination System permit. These services are provided by Central San's Environmental Compliance group under contract with the Contra Costa Clean Water Program. Amounts are invoiced by Accounting based on the number of inspections completed. The budgeted amount is based on a targeted number of inspections to be done during the fiscal year. o Interest income-Budgeted interest income is based on forecasted cash levels times estimated interest rates over the course of the fiscal year. o Developer fees - Charges for plan review and inspection of mainline extension projects by developers and other property owners. The amounts are collected by the Permit Counter and are budgeted based on estimates by the Planning & Development Services Division based on trend analysis and anticipated construction activity for the upcoming fiscal year. o Pumped Zone fees—For new developments in areas where pumps are required to move wastewater to the Central San treatment plant pay an additional capacity fee to cover pumping infrastructure costs. These fees are separately shown as Pumped Zone fees and are budgeted by multiplying the incremental pumped zone fee times the number of development units anticipated to be subject to such fees. o Other - Includes annexation fees, other service charges, and miscellaneous fee revenue. Amounts are collected by various departments depending on the source of revenue. For the Self-Insurance Fund, other revenue includes an allocation from the O&M fund in an amount necessary to replenish the Self-Insurance Fund to the targeted level after projected expenses in the budget year. Table 2 below shows the overall funding sources of Central San, and how those funding sources are applied to each sub-fund. Table 2 - Revenue Matrix Total Fund 01 Fund 02 Fund 03 Fund 04 ■I °� O&M Capital Self Insurance Debt Service Sewer Service Charge $95,000,000 67,073,732 27,926,268 City of Concord 21,950,000 14,800,000 7,150,000 Tax Revenue 16,828,591 13,300,000 3,528,591 Capacity Fees 5,900,000 5,900,000 HIM Reimbursement 929,000 929,000 Recycled Water 420,000 420,000 Other Revenue Sources including Permit&Inspection Fees 1,783,000 1,783,000 Lease Rental Income 627,000 627,000 Stormwater/Pollution Prevention 360,000 360,000 Interest Income 1,368,197 600,000 570,000 115,750 82,447 Developer Fees 443,000 443,000 Pumped Zone Fees 600,000 600,000 Other 1,177,500 333,000 - 844,500 - Total Other Revenue Sources 6,358,696 3,703,000 1,613,000 960,250 82,447 Total 147.386,287 86.925.732 55.889.268 960.250 3 611.038 34 June 7, 2018 Regular Board Meeting Agenda Packet- Page 161 of 446 Page 43 of 264 Financial Summary Sewer Service Charge (SSC) Table 3 indicates the total collected SSC and how such funds are allocated to the O&M and Capital budgets. The allocation of the SSC to Capital increases significantly from 15.7% in FY 2017-18 to 29.4% in FY 2018-19. All of the revenue generated by the FY 2018-19 SSC rate adjustment is being directed to the Capital Program and will be used to fund capital spending in FY 2018-19 and the subsequent year. A higher proportion of the available SSC can be directed to Capital given that the O&M budget is being held flat, while the SSC is increasing due to the July 1, 2018 scheduled rate increase. Table 4 shows the SSC for FY 2018-19 compared to the FY 2017-18 rates. These rates were approved by the Board in the spring of 2017 through a two-year rate ordinance which provided for a check-in to review Central San's financial status prior to the implementation of the FY 2018-19 rate adjustment. A public hearing on the rates was held on April 26, 2018 after a Board workshop on Central San's financial status and outlook was held on March 8, 2018. No change to the level of the previously adopted 7%rate adjustment was approved. Table 3 - Allocation of Sewer Service Charge BudgetFY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 To O&M $71,100,000 85.7% $73,138,235 85.8% $75,220,700 1 84.3%r$67,073,732 1 70.6% ($8,146,968) To Capital $11,820,000 14.3% $12,151,144 14.2% $13,967,300 1 15.7% $27,926,268 1 29.451. $13,958,968 Total Collected $82,920,000 100.0% $85,289,379 100.0% $89,188,000 r 100.0%1 $95,000,000 1 100.0%1 $5,812,000 Table 4 - Approved Annual Sewer Service Charge Customer Type FY 2015-16 FY 2016-17 FY 2017-18 FY • Single Family Residence $471 $503 $530 $567 Multi-Family Residence $463 $487 $513 $549 Effective Date 07/01/15 07/01/16 07/01/17 07/01/18 Customer •- 2016-17 1 1 • Rates per • -• cubic feet unless otherwise indicar�� Standard Commercial Rate for Users Not Listed Below $4.98 $5.25 $5.61 Automotive $5.73 $6.04 $6.46 Bakeries $13.22 $13.93 $14.90 Hotels/Motels $8.64 $9.10 $9.74 Supermarkets $9.34 $9.84 $10.53 Mortuaries $11.47 $12.09 $12.93 Restaurants $9.34 $9.84 $10.53 Minimum Annual Charge $504.00 $530.00 $566.00 35 June 7, 2018 Regular Board Meeting Agenda Packet- Page 162 of 446 Page 44 of 264 Financial Summary Customer Type FY 2016-171 1 • Industrial (rates per unit specified): Wastewater Flow(per hundred cubic feet) $3.67 $3.87 $4.14 Biochemical Oxygen Demand (per 1,000 pounds) $1,216.00 $1,281.27 $1,370.72 Suspended Solids (per 1,000 pounds) $567.00 $597.44 $639.14 Fixed $87.23 $91.91 $98.33 Minimum Annual Charge $504.00 $530.00 $566.00 Special Discharge Permits&Contractual Agreements: Determined Determined Determined Individually Individually Individually Mixed Use(for parcels with shared water meter; rates per hundred cubic feet): Rate Group XA: (90-99%Standard Commercial; 1-10% Restaurant) $5.32 $5.61 $6.00 Rate Group XB: (80-89%Standard Commercial; 11-20%Restaurant) $5.77 $6.08 $6.50 Rate Group XC:(70-79%Standard Commercial;21-30%Restaurant) $6.23 $6.56 $7.02 Rate Group XD: (60-69%Standard Commercial; 31-40% $6.67 $7.03 $7.52 Restaurant) Rate Group XE:(50-59%Standard Commercial;41-50%Restaurant) $7.12 $7.50 $8.03 Rate Group XF: (40-49%Standard Commercial; 51-60%Restaurant) $7.56 $7.97 $8.52 Rate Group XG:(30-39%Standard Commercial;61-70% $8.01 $8.44 $9.03 Restaurant) Rate Group XH: (20-29%Standard Commercial; 71-80% $8.45 $8.90 $9.53 Restaurant) Rate Group XI:(10-19%Standard Commercial;81-90%Restaurant) $8.91 $9.39 $10.04 Rate Group XJ: (31-35%Standard Commercial; 65-69%Bakery) $10.69 $11.26 $12.05 Rate Group XK: (21-30%Standard Commercial;70-79%Bakery) $10.32 $10.87 $11.63 Rate Group XL: (16-20%Standard Commercial;80-84%Bakery) $10.92 $11.51 $12.31 Rate Group XM: (11-15%Standard Commercial;85-89%Bakery) $11.26 $11.86 $12.69 Rate Group XN:(5-10%Standard Commercial;90-95%Bakery) $11.54 $12.16 $13.01 Rate Group XO: (10-15%Restaurant;85-90%Bakery) $11.69 $12.32 $13.18 Minimum Annual Charge $504.00 $530.00 $566.00 36 June 7, 2018 Regular Board Meeting Agenda Packet- Page 163 of 446 Page 45 of 264 Financial Summary y Customer •- 1 • 1 1 • Institutional(rates per hundred cubic feet unless otherwise noted): Churches $4.98 $5.25 $5.61 Schools(Daycare, Preschool, University) $4.98 $5.25 $5.61 Schools(Elementary) $6.19 per $6.52 per $6.98 per student student student Schools(Intermediate) $12.16 per $12.81 per $13.71 per student student student Schools(High School) $12.16 per $12.81 per $13.71 per student _ student student Fraternal &Service Organizations $4.98 $5.25 $5.61 Local&State Institutions $4.98 $5.25 $5.61 Other Tax Exempt(Except Federal) $4.98 $5.25 $5.61 Federal Institutions $4.98 $5.25 $5.61 Utilities with Special Tax Status $4.98 $5.25 $5.61 Independent Living Facilities, Rest Homes, &Convalescent $4.98 $5.25 $5.61 Hospitals Minimum Annual Charge $504.00 $530.00 $566.00 Source: Ordinance No.294,http://centralsan.org/index.cfm?navid=1523 37 June 7, 2018 Regular Board Meeting Agenda Packet- Page 164 of 446 Page 46 of 264 Financial Summary Uses of Funds The uses of funds (expenditures and contributions to reserves) for FY 2018-19 is shown in Figure 3. Two expenditure categories, O&M and Sewer Construction, account for more than 90% of the total uses. In FY 2018-19, a contribution to reserves comprises 5% of the total use of funds. These funds will be applied to the Sewer Construction Fund to help offset the anticipated borrowing impact of the increased capital spending planned for FY 2019-20. Figure 3 - Where the Money Goes Contributionto Reserves Self-Insurance, (seeTable12), $7,811,293,5'� $924,500. 1% aebtSerwKe $3,611,03.8, 2% Sewer Construction, $45,319,000, 31% _Operations a nd Maintenance, $.89,720,456, 61% FY 2015-19 Total Funding Uses 38 June 7, 2018 Regular Board Meeting Agenda Packet- Page 165 of 446 Page 47 of 264 Financial Summary O&M Budget Overview The total O&M revenue for FY 2018-19 is projected to be $86.9 million, compared to the FY 2017-18 budget amount of$94.7 million. Revenue decreases by $7.7 million, or 8.2%, due to the following: • While SSC rates are increasing by 7%, the O&M allocation of the SSC decreases to 70.6% from 84.3% in FY 2017-18, with the amount allocated to Capital Projects increasing from 15.7%to 29.4%. • The City of Concord is allocated a share proportional to their flow to the treatment plant, and environmental and regulatory compliance expenses, and is billed for administrative overhead and a finance charge. City of Concord revenue towards O&M costs is expected to be $14.8 million in FY 2018-19, a 2.6%reduction compared to the $15.2 million in FY 2017-18. This is due to actual expenses shared by the City of Concord coming in lower than what was budgeted in FY 2016-17 and FY 2017-18, which lead to a downward adjustment in expected revenue for FY 2018-19. The total O&M expenses are projected to be $89.7 million in FY 2018-19,unchanged from the $89.7 million in FY 2017-18. Central San has achieved a flat O&M budget that addresses critical needs and provides funding for key activities. Table 5 and Figure 4 show the FY 2018-19 O&M budget by expense category. Table 5 - FY 2018-19 Budgeted O&M Revenues and Expenditures BudgetBudgetto FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 BudgetAccount Description Budget Actual Budget Projected Revenue: Sewer Service Charge 71,100,000 73,138,235 75,220,700 75,221,000 67,073,732 (8,146,968) -10.8% Concord SSC 14,790,000 13,851,253 15,200,000 14,100,000 14,800,000 (400,000) -2.6% Permit&Inspection Fees 1,430,000 2,042,488 1,724,000 1,806,450 1,783,000 59,000 3.496' Lease Rental Income 616,200 605,648 612,000 612,900 627,000 15,000 2.5% HHW Reimbursement 888,000 851,710 853,000 906,000 929,000 76,000 8.9% Stormwater/Pollution Prevention 310,000 377,140 1 340,000 380,000 360,000 20,000 1 5.9.1/6 Interest Income 1 233,000 77,223 78,000 366,000 1 600,000 522,000 669.2% Recycled Water 1 100,000 349,763 335,000 377,000 420,000 85,000 25.4916 Other 350,000 501,079 296,000 376,000 333,000 37,000 12.5% Total Revenue 89,817,200 91,794,539 94,658,700 94,145,350 86,925,732 (7,732,968) -8.2% Expenditures: Salaries&Wages 33,158,707 31,794,337 34,797,628 34,003,060 35,571,037 773,409 2.2% Benefits&Cap O/H Credit 14,163,311 14,178,918 12,655,155 13,257,513 12,655,572 417 0.0% Salary&Benefits(Active Employees) 47,322,018 45,973,256 47,452,783 47,260,573 48,226,609 773,826 1.6% Benefits(Retirees) 5,362,300 5,404,628 5,946,000 5,620,900 5,941,200 (4,800) -0.1% Retirement UAAL/Unfunded Liabilities 11,741,700 10,964,446 11,679,261 11,282,158 10,720,478 (958,783) -8.2% Additional UAAL Contributions 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 - 0.0% Total UAAL/Unfunded Liabilities* 14,241,700 13,464,446 14,179,261 13,782,158 13,220,478 (958,783) -6.8% Total Labor Related Costs 66,926,018 64,842,329 67,578,044 66,663,631 67,388,287 (189,757) -0.3% Chemicals 1,920,000 1,426,091 1,482,000 1,379,600 1,459,000 (23,000) -1.6% Utilities 4,315,790 4,680,813 4,639,790 4,266,037 4,142,550 (497,240) -10.7% Repair&Maintenance 5,222,852 4,662,917 5,299,754 4,982,045 5,414,644 114,890 2.2% Hauling&Disposal 941,050 999,167 1,023,975 1,047,433 1,126,475 102,500 10.0% Professional&Legal Fees 630,750 646,602 807,600 657,300 845,300 37,700 4.7% Outside Services 3,980,175 3,244,611 1 3,452,717 3,069,992 3,510,822 58,105 1.7% Self Insurance Fund 920,000 920,000 585,000 585,000 779,500 194,500 33.2% Materials&Supplies 2,100,025420,647p382 422,135p543 2,030,835 2,108,126 48,801 2.4% Other Expenses 2,854,258 2,356,155 2,945,752 160,370 5.8% **Total Other O&M 22,884,900 20,374,397 22,332,169 196,626Total Expenditures 89,810,918 87,038,028 89,720,456 6,869Contribution to Reserve 6,282 7,107,322 (2,794,724) (7,739,837) *FY 2016-17 includes amounts that were reclassified during the annual audit to the Balance Sheet. **Includes cost for the production and distribution of recycled water. 39 June 7, 2018 Regular Board Meeting Agenda Packet- Page 166 of 446 Page 48 of 264 Financial Summary Figure 4 - FY 2018-19 OW Budget by Expense Category Operations and Maintenance Expen5es FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 Percent thousands) Actualof Total A.O&M Salaries&Wages $33,158,707 $31,794,337 $34,797,628 $35,571,437 39.696 B.Medical-Active $6,845,944 $6,264,760 $7,494,479 $6,615,333 7.4% B.Medical-Retiree $4,915,040 $4,938,618 $5,441,500 $5,417,000 6.0% B.Other Benefits{ Vacancies f Capitalized Admin Overhead 1,838,462 3,406,594 944,506 1,273,038 1.4% B.Retirement Normal Cost $5,925,249 $5,373,575 $5,121,070 $5,291,401 5.9% C.Additional Unfunded Lia bi I ity Contri bution $2,540,400 $2,500,400 $2,544,000 $2,540,440 2.8% C.Retirement URAL/Unfunded Liabilities $11,741,744 $10,964,446 $11,579,251 $14,724,478 11.995 U.Chemicals&Utilities $6,235,790 $6,106,903 $5,121,790 $5,601,554 6.2% D.Materia ls&Supplies $2,140,425 $2,408,099 $2,459,325 $2,148,126 2.3% D.Repair&Maintenance $.5,222,852 $4,662,917 $5,299,754 $5,414,544 5.0% U.Outside Services $3,980,175 $3,244,611 $3,452,717 $3,510,822 3.9% D.All Other $5,345,458 $4,624,852 $5,241,957 $5,697,427 6.3% Total $89,810,915 $55,49,712 $89,713,557 $39,724,456 140.496 D.Outsi deServices i 3.996 D.Repair&Maintenance_ _D.All Other 6.0% k.h I 6.396 4 I 1 I D.Materials&Supplied k 1 2.356 k ti D.Chemicals&Utilid 6.296 A.O&M Salaries&W ages 39.6% C.RetirementUAALJ Unfunded Liabilities----- 11.9% iabilities11.9% C.AdditionalUnfunded_ Lia bitty Contribution 2.8% El.Retirement Norm alG-s 5.9% B.M ed ical-Active i 7.4% i B.Medical-Retiree ! B.Crch er den efi6� 6.0% Vaca ncie&/Ca pitalized Ad min Overhead, 1.4% 40 June 7, 2018 Regular Board Meeting Agenda Packet- Page 167 of 446 Page 49 of 264 Financial Summary Staffing, Salaries, and Benefits Total salaries and benefits for active employees is projected to be $56.6 million in FY 2018-19, including both the O&M Fund and the Sewer Construction Fund. Compared to $56.5 million total salaries and benefits in FY 2017-18, this is a $0.1 million or 0.2% increase, as shown in Table 6a. Benefits for retirees are projected to be $5.9 million in FY 2018-19, unchanged from$5.9 million for FY 2017-18. Costs of Unfunded Liabilities for Pension and OPEB costs are $13.2 million, down from $14.2 million in FY 2017-18. Total Labor related costs decrease 1.1% from$76.6 million in FY 2017-18 to $75.7 million in FY 2018-19. The following tables show various levels of detail regarding labor costs. Table 6 summarizes all labor related costs across two sub-funds. Table 6a provides additional detail by sub-fund, and Table 7 provides more detail, particularly about benefit costs. Table 6 - Total Labor Costs Summary Operations& Sewer Budget(FY 2018-19) Maintenance Construction Total Active Employees Budgeted FTE Positions(estimated allocation) 266.86 23.14 290.00 Budgeted Salaries&Wages $35,571,037 $3,085,056 $38,656,093 Budgeted Benefits $16,635,295 $1,294,263 $17,929,558 Capitalized Admin Overhead** ($3,979,723) $3,979,723 $0 Benefits After Capitalized Admin Overhead $12,655,572 $5,273,986 $17,929,558 Total Costs Active Employees $48,226,609 $8,359,042 $56,585,651 Retiree Costs and Unfunded Liabilities Retiree Benefit Costs $5,941,200 $0 $5,941,200 UAAL/Unfunded Liabilities $13,220,478 $0 $13,220,478 Total Retiree Costs and Unfunded Liabilities $19,161,678 $0 $19,161,678 Total Labor Related Costs $67,388,287 $8,359,042 $75,747,329 **Consists of Indirect costs associated with non-productive hours and Admin Overhead. Table 6a — Salaries, Benefits, Retiree and Unfunded Liabilities Detail FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 Budget to Budget Actual Budget Budget Budget Variance Salaries $35,172,458 $33,192,567 $36,516,669 $38,251,464 $1,734,795 Salary Vacancy ($476,000) $0 ($443,000) ($1,193,000) ($750,000) Overtime $1,184,636 $1,148,954 $1,201,806 $1,222,429 $20,623 Standby $322,000 $371,085 $375,000 $375,200 $200 Total Salaries $36,203,094 $34,712,606 $37,650,475 $38,656,093 $1,005,618 Current Employee Benefits $20,071,193 $20,096,121 $19,956,075 $18,935,558 ($1,020,517) Benefit Vacancy ($1,149,000) $0 ($1,149,000) ($1,006,000) $143,000 Total Benefits(Active Employees) $18,922,193 $20,096,121 $18,807,075 $17,929,558 ($877,517) Total Salaries and Benefits(Active Employees) $55,125,287 $54,808,728 $56,457,550 $56,585,651 $128,101 Capitalized Administrative O/H $0 $0 $0 $0 $0 Total Salaries and Benefits(Active Employees) $54,808,728 $56,457,550 $56,585,651 $128,101 after Capitalized Administrive O/H "Retiree Benefits $5,946,000 $5,404,628 $5,946,000 $5,941,200 ($4,800) UAAL/Unfunded Liabilities $14,179,261 $13,464,446 $14,179,261 $13,220,478 ($958,783) Total Benefits and Liabilities for Past Service $20,125,261 $18,869,074 $20,125,261 $19,161,678 ($963,583) Total Salaries,Benefits&Liabilities for Past $75,250,548 $73,677,801 $76,582,811 $75,747,329 ($835,482) Service (Active and Retiree) 41 June 7, 2018 Regular Board Meeting Agenda Packet- Page 168 of 446 Page 50 of 264 Financial Summary Operations FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 Budgetto Budget Actual Budget Budget Budget Variance Salaries $32,217,344 $30,305,136 $33,739,967 $35,186,029 $1,446,062 Salary Vacancy ($440,000) $0 ($413,000) ($1,111,000) ($698,000) Overtime $1,059,363 $1,118,116 $1,095,661 $1,120,808 $25,147 Standby $322,000 $371,085 $375,000 $375,200 $200 Total Salaries $33,158,707 $31,794,337 $34,797,628 $35,571,037 $773,409 Current Employee Benefits $17,776,358 $17,793,673 $17,776,358 $17,641,295 ($135,063) Benefit Vacancy ($1,149,000) $0 ($1,149,000) ($1,006,000) $143,000 Total Benefits(Active Employees) $16,627,358 $17,793,673 $16,627,358 $16,635,295 $7,937 Total Salaries and Benefits(Active Employees) $49,786,065 $49,588,010 $51,424,986 $52,206,332 $781,346 Capitalized Administrative O/H ($3,972,203) ($3,614,755) ($3,972,203) ($3,979,723) ($7,520) Total Salaries and Benefits(Active Employees) $45,813,862 $45,973,256 $47,452,783 $48,226,609 $773,826 after Capitalized Administrive O/H Retiree Benefits $ 5,946,000 $ 5,404,628 $ 5,946,000 $ 5,941,200 ($4,800) UAAL/Unfunded Liabilities $ 14,179,261 $ 13,464,446 $ 14,179,261 $ 13,220,478 ($958,783) Total Benefits and Liabilities for Past Service $20,125,261 $18,869,074 $20,125,261 $19,161,678 ($963,583) Total Salaries,Benefits&Liabilities for Past $65,939,123 $64,842,329 $67,578,044 $67,388,287 ($189,757) Service (Active and Retiree) Sewer Construction FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 Budget to Budget Actual Budget Budget Budget Variance Salaries $2,955,114 $2,887,431 $2,776,702 $3,065,435 $288,733 Salary Vacancy ($36,000) $0 ($30,000) ($82,000) ($52,000) Overtime $125,273 $30,838 $106,145 $101,621 ($4,524) Standby $0 $0 $0 $0 $0 Total Salaries $3,044,387 $2,918,269 $2,852,847 $3,085,056 $232,209 Current Employee Benefits $2,294,835 $2,302,448 $2,179,717 $1,294,263 ($885,454) Benefit Vacancy $0 $0 $0 $0 $0 Total Benefits(Active Employees) $2,294,835 $2,302,448 $2,179,717 $1,294,263 ($885,454) Total Salaries and Benefits(Active Employees) $5,339,222 $5,220,717 $5,032,564 $4,379,319 ($653,245) Capitalized Administrative O/H $3,972,203 $3,614,755 $3,972,203 $3,979,723 $7,520 Total Salaries and Benefits(Active Employees) $8,835,472 $9,004,767 $8,359,042 ($645,725) after Capitalized Administrive O/H Retiree Benefits $0 $0 $0 $0 $0 UAAL/Unfunded Liabilities $0 $0 $0 $0 $0 *otaBe,nefits and Liabilities for Past Service $0 $0 $0 $0 $0 ries,Benefits&Liabilities for Past $9,311,425 $8,835,472 $9,004,767 $8,359,042 ($645,725) Service (Active and Retiree) 42 June 7, 2018 Regular Board Meeting Agenda Packet- Page 169 of 446 Page 51 of 264 Financial Summary Table 7 shows the allocation of Central San salaries and benefits to the O&M Fund and the Sewer Construction Fund. Table 7 - Salaries, Benefits (Detailed), Retiree and Unfunded Liabilities BudgetBudgetto FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 BudgetAccount Description .• Budget O&M Salaries&Benefits-Active Employees O&M Salaries $33,158,707 $31,794,337 $34,797,628 $34,003,060 $35,571,037 $773,409 2.2% O&M Benefits-Active Employees O&M Workers'Compensation $402,948 $250,313 $415,320 $418,799 $483,026 $67,706 16.3% O&M Medical&Health $6,845,900 $6,264,760 $7,094,079 $6,221,507 $6,615,333 ($478,746) -6.7% O&M Dental $529,909 $523,927 $523,098 $481,780 $531,242 $8,144 1.6% O&M Retirement-Normal cost $5,925,249 $5,373,575 $5,121,070 $4,998,132 $5,291,401 $170,331 3.3% O&M Deferred Comp/Medicare $2,264,571 $2,252,429 $2,396,058 $2,275,590 $2,457,201 $61,143 2.6% O&M Other Benefits $209,627 $84,057 $198,733 $160,248 $230,292 $31,559 15.9% OPEB Contribution(future $2,528,700 $2,486,372 $1,578,000 $1,903,100 $1,582,800 $4,800 0.3% contribution only;does not include retiree healthcare O&M Accrued Compensated $360,000 $558,241 $450,000 $450,000 $450,000 $0 0.0% Absence O&M Benefit Vacancy Factor ($1,159,000) $0 ($1,149,000) $0 ($1,006,000) $143,000 -12.451. O&M Benefits(Active Employees) $17,907,904 $17,793,673 $16,627,358 $16,909,156 $16,635,295 $7,937 0.0% O&M Capitalized Administrative ($3,744,593) ($3,614,755) ($3,972,203) ($3,651,643) ($3,979,723) ($7,520) 0.2% Overhead Credit(indirect costs associated with non-productive h;(Active) d Admin Overhead) nefits less Cap O/H Credit $14,163,311 $14,178,918 $12,655,155 $13,257,513 $12,655,572 $ 417 0.0% laries&Benefits $47,322,018 $45,973,256 $47,452,783 $47,260,573 $48,226,609 $773,826 1.6% Capital Salary and Benefits" $5,566,832 $5,220,717 $5,032,564 $4,630,302 $4,379,319 ($653,245) -13.0% Portion of Capitalized Overhead from above $3,744,593 $3,614,755 $3,972,203 $3,651,643 $3,979,723 $7,520 0.2% Capital Salary,Benefits and Capitalized Overhead $9,311,425 $8,835,472 $9,004,767 $8,281,945 1 $8,359,042 1 ($645,725) -7.2% O&M and Capital Salaries and $56,633,443 $54,808,728 $56,457,550 $55,542,518 $56,585,651 $128,101 0.2% Benefits(Active) Benefits-Retiree Retiree Medical $4,916,000 $4,938,618 $5,441,500 $5,165,100 $5,417,000 ($24,500) -0.5% Retiree Dental $350,200 $350,058 $397,800 $348,700 $405,500 $7,700 1.9% Retiree Life $96,100 $115,951 $106,700 $107,100 $118,700 $12,000 11.2% Retiree Benefits $ 5,362,300 $ 5,404,628 $ 5,946,000 $ 5,620,900 $ 5,941,200 (4,800) -0.1% UAAL/Unfunded Liabilities UAAL/Unfunded Liabilities $11,741,700 $10,964,446 $11,679,261 $11,282,158 $10,720,478 ($958,783) -8.2% Additional UAAL Contributions $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $0 0.0% Total UAAL/Unfunded Liabilities $14,241,700 $13,464,446 $14,179,261 $13,782,158 $13,220,478 $ (958,783) -6.8% Total O&M Salaries&Benefitgs, Capital,Retiree Benefits,and Unfunded Liabilities $76,237,443 $73,677,801 $76,582,811 $74,945,576 $75,747,329 $ (835,482) -1.1% 43 June 7, 2018 Regular Board Meeting Agenda Packet- Page 170 of 446 Page 52 of 264 Financial Summary Budgeted Full Time Equivalents Table 8 shows full time equivalent employee totals for time periods indicated. The Year-End Actual figures represent actual staffing as of June 30, 2017. In addition to the 290 budgeted positions, the General Manager has the ability to add five (5) additional "transitional"positions at any given time to backfill positions vacated due to an extended leave of absence or as necessary to properly address succession planning. The cost associated with these positions are funded through vacancy savings. Table 8a shows FY 2018-19 budgeted positions by bargaining unit. Table 8 - Budgeted Full Time Equivalents FY 1 Budget Actual Budget E - 2017-18 FY 2018-19 . . - Regular Employees (excluding Recycled Water) 729C.0 272.00 290.00 290.00 Limited Duration Employees Summer Students 30.0 25.00 31.00 31.00 Interns 10.5 12.00 9.50 8.50 Table 8a - Full Time Equivalent Positions by Bargaining Unit and Division r PE �& - Administration Engineering . . Local One 18.0 39.00 108.00 165.00 MS/CG 27.0 49.00 32.00 108.00 Management Unit 5.0 5.00 3.00 13.00 Unrepresented 3.0 0.00 1.00 4.00 Total by Division 53.0 93.0 144.0 290.00 Staffing Changes During 2015, a staffing and organizational studyl�ll was completed for Central San. The study recommended that Central San hire a consultant to conduct a classification study, which was completed in 2017, to ensure that Central San's classification structure was appropriate and employees were working within their job classifications. The budget includes the cost of implementing the recommendations of the study, as well as other changes to the classification structure that Central San has deemed as operationally necessary. The FY 2018-19 budget includes $200,000 in gross wages and $106,000 for the benefit related costs of implementing these potential changes. Overall staffing remains at 290 positions, unchanged from the FY 2017-18 budget. Reallocations of staffing between divisions are summarized below: - Contracts Analyst (Purchasing)replacing Accountant(Finance) - Senior Administrative Technician replacing Human Resources Analyst(Human Resources) Report is available here:http://centralsan.org/documents/Organization and_Staffing Plan.pdf. 44 June 7, 2018 Regular Board Meeting Agenda Packet- Page 171 of 446 Page 53 of 264 Financial Summary Two IT Analysts I/II replacing Programmer Analyst and IT Analysts (Information Technology) Senior Materials Coordinator replacing Materials Coordinator(Purchasing) Risk Management Specialist replacing Risk Management Analyst(Risk Management) Administrative Technician replacing Senior Administrative Technician(Office of General Manager) Senior Engineer replacing Assistant Engineer along with Temporary Senior Engineer (Capital Projects) Net staffing change: Zero Variances in the O&M Budget O&M costs overall are flat from FY 2017-18 to FY 2018-19. Salaries increase $0.8 million,which are offset by benefit and retirement cost decreases of$1.0 million, while other costs increase $0.2 million. These changes are discussed below and illustrated in Figure 5. Figure 5 - O&M Cost Comparison by Year in Thousands O&M Expenses by Category $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 11111III ■�__ ■ ■■ IIII ■■■■ loll �� � $0 N Vl O O i' N .UJ N V V t taoa+ — -0CL _+ C o6 UJ >= J = N N Q C m O N C UJ O1 '0 O vn cc j ate+ C C 0 Q ' , V N G 7 N O v � � Q — E v o60 Q v ao j v =Y a t io O U Q v v O u a) 0 E o o Q =0 a N 6 N m p -0aj Y Q `° v c i ■FY 2016-17 Budget ■FY 2016-17 Actual ■FY 2017-18 Budget ■FY 2018-19 Budget The lettered expense categories in the chart correspond to the descriptions below. A. O&M Salaries & Wages Central San's budgeted salaries are $35.6 million in FY 2018-19, compared to $34.8 million in FY 2017-18, representing an increase of$0.8 million, or 2.2%. The primary driver of this is an assumed salary adjustment effective May 2018 (based on the Bay Area consumer price index change from February 2017 to February 2018), and step increases for newer employees. These additional costs are offset by an increase in the vacancy factor and the assumption that vacant positions will be filled by lower paid employees. B. Benefits and Capitalized Overhead Central San benefits for the O&M budget are $18.7 million in FY 2018-19 compared to $18.6 million in FY 2017-18, an increase of$0.1 million or 0.3%. Given the timing of the budget 45 June 7, 2018 Regular Board Meeting Agenda Packet- Page 172 of 446 Page 54 of 264 Financial Summary process, assumptions were made on program costs pending the availability of actual announced changes by the providers. These assumed cost changes for budget purposes, and the actual cost changes subsequently announced by the carriers, are discussed in the bullet points below. While healthcare plan cost changes have now been provided by Kaiser and Health Net for FY 2018-19 versus the rates for FY 2017-18, these overall healthcare cost changes have generally not been included in the budget, as Central San anticipates a reduction in healthcare costs to commence mid to late in FY 2018-19, after a transition to a new health plan provider. This move is subject to finalized labor agreements and then the commencement of new healthcare plans through the California Public Employees' Retirement System(CalPERS). When implemented, this change is estimated to save Central San ratepayers $5.6 million annually on an ongoing basis. For budget purposes, we assume the same level of spending on healthcare as in FY 2017-18, less $306,000, recognizing the possibility of some savings in the year to offset anticipated increases during the first portion of the fiscal year. The primary benefit rate assumptions include the following: • Kaiser—The budget assumes a $306,000 reduction. In late April 2018 after the budget assumption was made, the carrier announced a 4.9%premium decrease compared to the rates paid in FY 2017-18 (representing a $260,000 reduction). As the majority of employees receive Kaiser healthcare, these cost savings will help offset the increase in Heath Net rates (reflected in the following bullet). • Health Net-No rate change was assumed during the budget process. Subsequently, the carrier announced a 16%rate increase from the levels charged in FY 2017-18. As noted above, savings from the Kaiser decrease will help absorb a portion of this increase. Overall, healthcare costs for the existing Kaiser and Health Net plans will increase by about $492,000 from the rates paid in FY 2017-18. Savings from other benefit plans, savings from the transition to the CalPERS plans, or other budget savings, can help address this now known variance. • CCCERA—The retirement rate is decreasing 2.9% for legacy employees and 4.9% for PEPRA employees, offset by higher pensionable wages. This is compared to a 7.6% decrease and 11.2% decrease for legacy and PEPRA employees, respectively, in FY 2017-18. • Delta Dental—A 4%rate increase was assumed during the budget process. Subsequently, the carrier announced that rates are to be held flat. • Long-Term Disability-A 3%rate increase was assumed during the budget process. Subsequently, the carrier announced that rates are to be held flat. • Employee Assistance Program- A 3%rate increase is assumed for budget purposes. Subsequently, the carrier announced that rates are to be decreased 5.1% from the rates paid in FY 2017-18. • Workers' Compensation—The budget assumes an estimated 10.%rate increase. • Life Insurance -A 3%rate increase is assumed for budget purposes. Subsequently, the carrier announced that rates are to be held flat. The Capitalized Administrative Overhead rate, a credit given for capital work to the O&M budget for non-work hours and overhead, increased from 123% in FY 2017-18 to 124% for FY 2018-19. The Capitalized Administrative Overhead budget is $4 million in FY 2018-19, unchanged from FY 2017-18. 46 June 7, 2018 Regular Board Meeting Agenda Packet- Page 173 of 446 Page 55 of 264 Financial Summary C. Unfunded Liabilities Central San has agreements with its employees to provide pension and post-employment health care benefits. The District prefunds the pension/benefits in accordance with actuarial calculations that make certain economic and demographic assumptions. The goal is to grow these prefunded amounts into enough assets to cover the liabilities arising from the promised pensionibenefits. An unfunded liability may occur when those economic/demographic assumptions are not met, those assumptions are changed, and/or the level of pension/benefits is adjusted. The pension unfunded liability expense paid to CCCERA is $11.4 million in FY 2018-19, which, compared to the budget of$11.7 million in FY 2017-18, is a decrease of$0.3 million or 2.0%. The budget also includes an additional $2.5 million to be paid towards the unfunded liability in retirement and/or Other Post-Employment Benefits (OPEB) Trust, as determined by the Board during the fiscal year. This level of funding continues as in FY 2016-17 and FY 2017-18. D. All Other OW Expenses The remaining O&M non-labor expenses total $22.3 million in FY 2018-19, compared to a budget of$22.1 million in FY 2017-18. This is an increase of$0.2 million or 0.9%. Additional information is included in the individual division budgets. The areas of most significant changes include the following: • Chemicals - This expense was reduced by $23,000,or 1.6% due to lower usage of chemicals in the pumping stations. • Utilities - This expense decreased $497,000 or 10.7% due to lower use of electricity from PG&E due to cogeneration system improvement and the lower cost of pre-purchased natural gas. • Repairs &Maintenance - This expense increased$115,000, or 2.2% due to increased mechanical repair expenses offset by the elimination of bypass pumping expense. • Hauling& Disposal - This expense increased $103,000, or 10% due to higher household hazardous waste disposal rates and the new screens at the headworks facilities at the plant. • Professional& Legal Fees - This expense increased $38,000K, or 4.7% due to legal review of updates to policies and procedures budgeted in the Office of the Secretary of the District. • Outside Services - This expense increased by $58,000, or 1.7% due to non-capital security improvement, increased recruitment expense and increased cost-of-service consultant spending offset somewhat by a net reduction in outside temporary help. • Self-Insurance Expense - This expense increased by $195,000, or 33% and funds the requirements for the payment of premiums and estimated losses based on historical trends. • Materials & Supplies - This expense increased $49,000, or 2.4% due to small budgetary increases across many divisions. • Other Expenses - This expense increased by $160,000, or 5.8% due to Proposition 218 Notice expenses and the fall 2018 Board election. • Conferences - This expense is included in the Other Expenses category. District-wide conferences presented in the FY 2016-17 budget represented out-of-state conferences; FY 2017-18 and FY 2018-19 also include in-state conferences. Table 9 shows that overall spending on conferences remains essentially flat from the current year budget to FY 2018-19. 47 June 7, 2018 Regular Board Meeting Agenda Packet- Page 174 of 446 Page 56 of 264 Financial Summary Table 9 - Conferences IFY F i2018-19 Percent BudgetBudget - Variance Board Conferences $50,000 $45,000 $45,000 $0 0% District Wide Conferences,Out- of State# $66,350 $59,458 $82,500 $23,050 3996 District Wide Conferences, In- State not specified $170,675 $148,900 ($21,775) -13% Tota! $116.350 $275,1.25 $276.400 $1,275 0% *FY 2016-17 included only out-of-state conferences;future years include all conferences. Operating Departments Table 10 and Figure 6 provide a summary of the operating budgets by department. Further details on the operating departments are included in the Operating Departments Section. Table 10 - O&M Budget by Department Table 8-Operations and Maintenance Budget by Department BudgetBudgetto FY 2016-1-7 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Account Description Budget Actual Budget Projected .• Administration Communications Services and $2,124,485 $1,894,969 $1,979,369 $1,906,679 $2,094,427 $115,058 6% Intergovernmental Relations Finance $2,507,401 $2,253,392 $2,570,983 $2,254,762 $2,442,604 ($128,379) -5% Human Resources $12,104,264 $12,045,527 $12,579,787 $12,564,487 $12,609,437 $29,650 0% Information Technology $3,700,951 $3,528,3911 $3,938,582 $3,704,335 $4,137,334 $198,752 5% Purchasing and Material Services $1,763,107 $1,577,434 $1,958,932 $1,732,274 $2,051,286 $92,354 5% Risk Management $2,008,786 $1,668,104 $1,604,720 $1,340,076 $1,823,308 $218,588 10o' Office of the General Manager/ $3,619,999 $3,749,968 $2,629,493 $2,840,642 $2,579,261 ($50,232) -2% Office of the Secretary of the District Total $27,828,993 $26,717,7861 $27,261,866 $26,343,255 $27,737,657 $475,791 2% Budgetto BudgetFY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Account Description .• .• Projected Budget En ineerin and Techn' al Services De artment Capital Projects Division $1,199,904 $731,890 $766,422 $423,622 $835,854 $69,432 9% Environmental and Regulatory $8,243,342 $8,028,974 $8,451,520 $7,990,437 $8,397,399 ($54,121) -1% Compliance Division Planning and Development $6,455,894 $6,581,696 $7,816,395 $8,106,320 $7,800,153 ($16,242) 0% Services Division Total $15,899,140 $15,342,561 $17,034,337 $16,520,379 $17,033,406 ($931) 0% 48 June 7, 2018 Regular Board Meeting Agenda Packet- Page 175 of 446 Page 57 of 264 Financial Summary Budgetto BudgetFY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 BudgetAccount Description ••et Projected Budget Operations Collection System Operations $14,472,053 $13,760,274 $14,156,213 $13,848,644 $13,960,060 ($196,153) -1% Plant Maintenance $14,035,700 $13,126,339 $14,138,658 $13,619,948 $14,366,463 $227,805 2% Plant Operations $14,859,845 $14,700,185 $14,886,976 $14,634,580 $14,131,964 ($755,012) -5% District Safety Program $913,468 $871,929 $916,895 $843,267 $938,112 $21,217 2% Recycled Water Program $1,801,719 $970,638 $1,318,642 $1,227,955 $1,552,794 $234,152 18% Total $46,082,785 $43,429,366 $45,417,384 $44,174,394 $44,949,393 ($467,991) -1% Total All Departments $89,810,918 $85,489,712 $89,713,587 $87,038,028 $89,720,456 $6,869 01/16 Figure 6 - FY 2018-19 O&M Budget by Function $35,000,000 $30,000,000 — $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Engineering and Collection System Plant Operations, Recycled Water Administration Technical Services Maintenance, Department Operations Safety Program ■FY2016-17Actual $26,717,786 $15,342,561 $13,760,274 $28,698,453 $970,638 •FY2017-18 Budget $27,261,866 $17,034,337 $14,156,213 $29,942,529 $1,318,642 FY2018-19 Budget $27,737,657 $17,033,406 $13,960,060 $29,436,539 $1,552,794 Historical Variances in O&M Spending Figure 7 below shows historic O&M budgeted and actual amounts. As noted, there have been variances averaging 3% (spending was 97% of budget) over the last five completed years. In the development of the FY 2018-19 budget, attention was paid to reviewing the budget on a line-by-line basis, with the budgeted amount evidenced by detailed support and a comparison to FY 2017-18 projected spending. Figure 7 - Historic O&M Budget vs. Actual Spending in Millions (Multi-Year Trend) O&M Budget Achievenzent SloO 590 580 $70 $60 $50 540 $30 $20 SIO Sa ., ,�,�����y�o�a4ti ,AX cam~ 4"X 4-k k•,�'L �cA 4k�4A BUDGET = ACTUAL 49 June 7, 2018 Regular Board Meeting Agenda Packet- Page 176 of 446 Page 58 of 264 Financial Summary Capital Improvement Budget (CIB) Sewer Construction Fund revenues are projected to increase by $16.6 million, from $39.3 million in FY 2017-18 to $55.9 million in FY 2018-19. This increase is to cover an extensive capital improvement program and will be generated primarily through an increase in Sewer Service Charges of$14.0 million, resulting from additional revenue available from the 7%rate increase effective July 1, 2018, and an expected City of Concord reimbursement of$1.2 million due to higher flows and increased cost-based reimbursement. Budgeted capital expenditures for FY 2018-19 are $45.3 million, a $2.5 million increase over the FY 2017-18 budget of$42.7 million. The $45.3 million does not include the anticipated carryforward from FY 2017-18, which will be communicated to the Board after the close of the current fiscal year. The $2.5 million, or 6%, increase in budgeted spending is a small step toward the significantly increased capital spending foreseen for the next decade as shown in the Ten-Year Capital Improvement Plan(CIP)presented later in this document. Central San will contribute approximately $10.6 million to capital reserves in FY 2018-19 with revenues exceeding expenditures by that amount. Funding the Sewer Construction Fund(Capital Improvement) - Working Capital Reserves exceeds the requirement of the aforementioned Board Policy No. BP 017— Fiscal Reserves. The excess funding is to be applied toward reducing anticipated borrowing in FY 2019- 20. Table 11 below is a summary of the projected FY 2018-19 Sewer Construction Fund revenues and expenditures. Further details are included in the Capital Improvement Program Section. Table 11 - Sewer Construction Fund Revenues and Expenditures Budget* Budgetto FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Budget Percent Budget Actual Budget Projected Revenue Capacity Fees $5,060,000 $6,367,013 $5,900,000 $5,700000 $5,900,000 $0 , 0% Pumped Zone Fees $400,000 $596,564 $513,000 $860,000 $600,000 $87,000 17% Interest Income 1 $225,000 $588,387 $386,000 $553,000 $570,000 $184,000 48% Ad Valorem Taxes $11,080,000 $12,577,156 $12,100,000 $12,900,000 $13,300,000 $1,200,000 10% Sewer Service Charge $11,820,000 $12,151,144 $13,967,300 $13,967,000 $27,926,268 $13,958,968 100% Reimbursements C!�f of Concord $4,550,000 $4,476,961 $6,000,000 $6,000,000 $7.150,000 $1,150,000 19% Recycled Water Sales $300,000 $36,946 $38,500 $0 $0 ($38,500) -100% Developer Fees&Charges $470400 $519,072 $423,000 $442,500 $443,000 $20,000 5% Total Revenue $34,905,400 $37,313,243 $39,327,800 $40422,500 $65,889,268 $16,561,468 42% Expenditures Collection System Program $17,925,105 ....$20,791,120 $18,492,000 $19,530,000 $19,347,000 $855,000 5% Treatment Plant Program $1.3,125,000 $12,239,981 $18,045,000 $17,900,000 $16,865,000 $1,x,000 -7% General improvements Program $3,808,651 $3,062,994 $4,277,000 $2,640,000 $4,750,000 $473,000 11% Recycled Water Program $500,000 $601,954 $460000 I $1,675,000 $2,857,000 $2,397,000 521% Contingeng $1,450000 $0 $1,500000 1 $0 $11500000 $0 0% Total Expenditures $96,808,756 $36,696,049 $42,774,000 $41,74SAM $45,319,000 $2,545,000 6% Carryforward 53,700,00 Total Expenditure Authority $46,474,000 Sewer Construction Funds Available Projected Revenue Projected Expenditures $45,319,000 Contribution to Reserves $10,570,268 •The FY 2818-19 budget amount does not include any carryforward from past f€scal years;the Board will be notified of any carryforward amount after the close of the current fiscal year. 50 June 7, 2018 Regular Board Meeting Agenda Packet- Page 177 of 446 Page 59 of 264 Financial Summary Impact of CIP on Ongoing O&M Budget Central San's Capital Budget and the extent to which FY 2018-19 nonrecurring capital investments will have an effect on the proposed or future year's operating budget are described later in this document. In general, given the nature and composition of the FY 2018-19 Capital Budget, these effects are minimal. Future capital projects could have more substantial impacts (e.g., additional personnel costs, additional maintenance costs, or additional utility costs, or conversely, anticipated savings such as reduced utility costs or lower maintenance costs) that would be specified further in the year such projects are budgeted. Reserve Projections Board Policy No. BP 017 Fiscal Reserves sets targets for each of Central San's reserve funds. Fiscal reserves provide working capital for O&M activities; funding for long-term capital improvement requirements; fulfillment of legal, regulatory and contractual obligations; mitigation of risk and liability exposures; and cash flow emergencies. These reserves are fully funded as of FY 2016-17 but are adjusted annually based on changes in the targeted balance calculation. • For the O&M Fund - Working Capital Reserves, the Board has set a target of five months (41.7%) of gross operating expenses at the start of each fiscal year. • For the Sewer Construction Fund (Capital Improvement) -Working Capital Reserves, the Board has set a target of 50% of the annual capital projects budget at the start of each fiscal year, excluding capital projects that are to be funded with bond proceeds. • For the Self-Insurance Fund Reserves the Board has set a target of three times the annual deductible, $1.5 million. In addition, to help mitigate financial impacts and maintain uninterrupted service in the event of an emergency or catastrophic event, Central San maintains an Emergency Fund Reserve balance of$5 million in the Self-Insurance Fund. Table 12 presents a summary of Central San's current reserve balance projections compared to the Board Policy targets. The reserve levels are projected to be above the policy-required levels at June 30, 2018 and 2019. The FY 2018-19 revenue requirement funds a projected$7.8 million increase in the reserve balances. While the FY 2019-20 capital budget and funding combination is yet to be finalized, the current projection anticipates $9.2 million of funding above the targeted level, providing for the ability to reduce the proportion of the CIB that would otherwise be financed with bonds. The amounts are subject to change based on actual financial results for the current and next fiscal years. 51 June 7, 2018 Regular Board Meeting Agenda Packet- Page 178 of 446 Page 60 of 264 Financial Summary Table 12 - Reserve Projections Sewer Construction Self Insurance O&M Fund Fund(Capital) Fund Totals Projected Balance as of June 30,2018 $40,265,845 $29,053,312 $6,516,933 $75,836,090 Projected Balance as of June 30,2019 537,471,121 $39,623,580 $6,552,683 $83,647,384 Change year over year ($2,794,724) $10,570,268 $35,750 $7,811,294 Refererme: Table 5 Table 11 Self insurance See Figure 3 Table 1 Precentage change year over year -6.9% 36.4% 0.5% 10.3% Explanation Ending balance at Funds are being 6/30/18 is above set aside during policy level due FY 2018-19 to be to O&M savings in used towards FY 2017-18, funding the following year's Capital budget. Policy Target 5/12 of 50%of 3 times annual following year's following year's deductible of O&M Budget non-debt $500,000 plus funded Capital $5 million Reserve Polity Target end of June 30,2018 $37,383,523 S22,6S9,5W $6,500,000 $66,543,023 Projected Balance Minus Reserve Policy Target at June 30,2018 $2,982,322 $6,393,812 $16,933 $9,293,067 Reserve Policy Target end of June 30,2039 $37,271,483 $30,379,000 56,500,000 $74,150,483 Projected Balance Minus Reserve Policy Target at June 30,2019 $199,638 $9,244,580 $52,683 $9,496,901 Reserve calculations subject to final close of financial results for the year and may differ from projection. Reserve projection may be updated by the time of the presentation of the final budget. 52 June 7, 2018 Regular Board Meeting Agenda Packet- Page 179 of 446 Page 61 of 264 Financial Summary Debt Service Current debt service expenditures include outstanding payments on a State of California Water Reclamation Loan and 2009 Revenue Bonds. Details on the debt service are included in the Debt Program Section. Figure 8 depicts all existing debt payments for Central San. Future planned debt issuances would add to this debt profile. The need for new bond funding is anticipated for FY 2019-20. Figure 8 - Debt Service Payment Schedule $4,500,000 $4,000,000 ■ Principal $3,500,000 ■ Interest $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 til ti� ti� ti� titi titi ti� ti� ti� ti� til ti� ti� tiw y05- yo by tiff ti� ti° tih ti� ��, ,yo do ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo An important financial performance metric is the Debt Service Coverage Ratio. The Board's targeted coverage ratio is 2.0. As shown in Figure 9, Central San will meet the overall Debt Service Coverage Ratio of 2.0 as required. Figure 9 - Historic and Project Debt Service Coverage Ratio 20.00 18.00 - — 16.00 14.00 - Adjusted Net 12.00 Revenue Debt 10.00 Coverage Ratio 8.00 ff 6.00 4.00 2.00 Net Revenue Debt Service 0.00 Coverage 01 Q� O°� N N yL y3 y0 y�i N til N tib' Or° 01 OC Ooi yQ N yI y')i tiV tih tiV ti1 IS, y( ti( y0 LO y0 ti6 y0 LO LO tib ti0 LO yI Net Revenue:This ratio must be above 1.00 to meet the Debt Rate Covenant(Net Revenue/Total Debt Service). Adjusted Net Revenue=Net Revenue less Capital Improvement Fees(Connection Fees)and City of Concord Capital Charges.This ratio must be above 1.25 to meet the Debt Rate Covenant(Adjusted Net Revenue/Total Debt Service). 53 June 7, 2018 Regular Board Meeting Agenda Packet- Page 180 of 446 Page 62 of 264 Financial Summary Long-Term Spending Trend Figure 10 shows a long-term trend line of O&M expenditures, while Figure 11 shows a long-term trend line of capital expenditures. Figure 10 - Long-Term O&M Spending Trend S1Oa,aaa,aaa 59010001000 50,000,000 $70,000,000 $6010001000 50,000,000 5x0,000,000 �s0,000,000 �z0,000,000 51o,aaa,aan _1Q, leyNo Budget Actual Figure 11 - Infrastructure Investments Over Ten Years: $300,119,500 CIP Actual Expenditures 545.M E E o $40.M £ y d 0 535.M E E E 530.M G r �E o E ry E $25-M c E L° •KW E °S2ann � E * ■cl ■a ■m $15-M $IO.M 55.M $am 05-06 41&07 07.418 0&09 0310 1611 11.12 12.13 1.3.11 14-15 1516 1617 Fecal you RW—Recycled Water/GI—General Improvements/CS—Collection System/TP—Treatment Plant 54 June 7, 2018 Regular Board Meeting Agenda Packet- Page 181 of 446 Page 63 of 264 Operating Departments On a day-to-day basis, the following three Operating Departments carry out the mission of Central San to protect public health and the environment: • Administration • Engineering and Technical Services • Operations These three operating departments carry out Central San's mission by providing exceptional customer service in the operation of our wastewater collection, treatment, recycled water, and household hazardous waste collection facilities. The departments are guided by Central San's Strategic Plan which provides direction and initiatives to help guide us in achieving our goals and objectives. The following sections describe the responsibilities of each department and their operating budget needs. The total operating budget for Fiscal Year 2018-19 is $89.7 million, unchanged as compared to the $89.7 million budget for Fiscal Year 2017-18. 55 June 7, 2018 Regular Board Meeting Agenda Packet- Page 182 of 446 Page 64 of 264 Page Intentionally Blank 56 June 7, 2018 Regular Board Meeting Agenda Packet- Page 183 of 446 Page 65 of 264 Administration Department `rL:7 r 'kcc� tiA S The Administration Department consists of the Office of the General Manager, the Office of the Secretary of the District, District Counsel, Human Resources, and Administrative Services. The primary function of the Administration Department is to provide services that support the efficient operation of Central San, including administrative support to the General Manager; financial management; purchasing and materials management; information technology; and risk management. The Department is also responsible for advancing Central San's policy objectives with state and federal legislative bodies in addition to being responsible for interagency relations and public affairs. The Divisions that comprise this Department include: • Communication Services and Intergovernmental Relations • Finance • Human Resources • Information Technology • Purchasing and Materials Services • Risk Management • Office of the General Manager/Office of the Secretary of the District June 7, 2018 Regular Board Meeting Agenda Packet- Page 184 of 446 Page 66 of 264 Administration Department—Communication Services and Intergovernmental Relations Communication Services and Intergovernmental Relations OVERVIEW This Division supports Central San's internal and external communication, government relations, advocacy, community outreach, media relations, emergency communications,publications, events, and student educational programs. The Division also oversees a contracted, full-service reprographics services center and mail service which serves all of Central San. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: ' Successful completion of the third Central San Academy, a program which focuses on educating our customers on the mission of Central San and how it is fulfilled. • Hosted a week-long collection drive for the 20th Anniversary of the Household Hazardous Waste Collection Facility, leading to our highest customer participation level ever. • Developed innovative household hazardous waste and educational videos that televised important and timely Central San programming, operational support, and pollution prevention messages reaching tens of thousands of viewers. • Increased the reach of our student pollution prevention educational programs. These students will play a role in reducing pollution and supporting the environment for decades to come. Goal 1 - • Provided educational programming to over 2,200 students in our service area, Provide Exceptional helping support hands-on science-based learning in local schools. Customer Service • Focused outreach efforts that showcased completion of major infrastructure projects that increase service reliability and add value for customers. • Provided comprehensive and engaging Speakers Bureau presentations to over 1,000 customers. • Provided tours of Central San's treatment plant and Household Hazardous Waste Collection Facility to over 250 customers. • Trained Communication Services Division in crisis communications to prepare for possible emergencies. • Honored by the California Association of Public Information Officials for the 2018 Photography Award. • Received the 2018 First Place California Water Environment Association statewide award for Photography. • Selected to showcase an Interactive Knowledge Exchange video at the 2017 Water Environment Federation's annual Technical Exhibition and Conference. Fiscal Year 2018-19 Key Metrics Students served by educational programs Greater than 4,000 per year Participants in Treatment Plant/ Household Hazardous Waste Collection Greater than 500 Facility tours and District presentations participants per year Participants in citizens academy, Central San Academy Greater than 30 participants per session 58 June 7, 2018 Regular Board Meeting Agenda Packet- Page 185 of 446 Page 67 of 264 Administration Department—Communication Services and Intergovernmental Relations Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Provide high-quality customer service. Customer Satisfaction Invest in business process changes and technologies to effectively increase Customer Satisfaction, access to District information and Operational Build External promote customer care, convenience, Optimization Customer and self-service. Relationships and Increase customer understanding and Stakeholder Awareness support for key District initiatives, Understanding and programs, and services. Support Goal 1 — Build and maintain relationships with Stakeholder Provide federal, state, and local elected officials Understanding and Exceptional and key stakeholder groups. Support Customer Service Establish opportunities for internal and Maintain an partnerships and cross-divisional Enterprise Resiliency Excellent Foster Employee collaborations. Reputation in the Engagement and Community Interdepartmental Cultivate employees' understanding of Employee and Collaboration District operations and their role in the Leadership agency's success. Development, Enterprise Resiliency Continue to participate in industry trade Employee and organizations and apply for Leadership Maintain a Strong certifications and awards. Development Reputation in the Community Minimize impacts to residents and businesses during maintenance or Customer Satisfaction construction work. Comply with All Goal 2— Re-examine existing Department and and State,, Strive to Meet FederalAdministrative Procedures to ensure Regulatory Local Regulations compliance with applicable laws and Enterprise Resiliency Requirements Related to District regulations. Administration Goal 3— Re-engineer business processes and Be a Fiscally complete optimization studies to identify Operational Responsible and Manage Costs opportunities to reduce costs and align Optimization Effective with best practices. Wastewater Utility 59 June 7, 2018 Regular Board Meeting Agenda Packet- Page 186 of 446 Page 68 of 264 Administration Department-Communication Services and Intergovernmental Relations EUM Attribute Goal 4- Recruit, Develop, Enhance Employee and and Retain a Relationships with Cultivate a positive work culture. Leadership Highly Trained Employees and and Safe Bargaining Units Development Workforce Goal 6- Encourage the Embrace Review and Testing Technology, of Technology to Continue developing and investing in Operational Innovation, and Optimize and cost-effective innovation, technology, Optimization Environmental Modernize and applied research and development. Sustainability Business Operations Budget Overview by Expense Category A�count F?:�6194T W201647 IFY 2017-19 _FY200-118 IFY 2018-19 Budget to Percent Budget to Percent Description Budget Actual Budget Projected Budget Projected Variance Budget Variance Variance Salaries& $664,176 $666:559 $676,862 $635,300 $732,452 $97,152 15% $55,590 8% Wages Employee 5513,844 $518,129 $471,302 $442,264 $216,536 ($225,728) -551% ($254,766) -54% Benefits Unfunded 50 $0 $0 $4 $226,934 $226,934 100% $226,934 14446 Liabili ies' Repairs& $1,000 $0 51,000 $1,000 $1,000 s0 0% s0'- 0% Maintenance Professional& 52,604 $6,052 1 $2,600 $2,800 $3,500 S900 35% $9W 35% Legal Services Outside $409,000 $344,127 S399,000 $390,200 $391,000 S800 0% ($8,000) -2% Services Materials& $61,675 $52,657 561,675 $61,675 561,675 50 0% s0 0% Supplies_ Other $472,230 $307,445 $366,930 $373,640 $461,330 587.690 23% $94,400 26% Expenses Total $2,124,485 $1,894,969 $15979,369 $1,906,679 $2,094,427 $187,748 1 10% $115,_058 6% *Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. Personnel Requirements t • .. . . t2018-19 YE Actual Communication Services and 1.00 1.00 1.00 Intergovernmental Relations Manager Community Affairs Representative 2.00 2.00 3.00 Graphics Technician 1.00 1.00 1.00 Media Production Technician 1.00 1.00 1.00 Public Information and Production 1.00 1.00 0.00 Assistant Total 6.00 6.00 6.00 60 June 7, 2018 Regular Board Meeting Agenda Packet- Page 187 of 446 Page 69 of 264 Administration Department—Communication Services and Intergovernmental Relations 1 Graphic Design Summer Student 1.00 1.00 1.00 Intern 0.00 0.00 1.00 Total 1.00 1.00 2.00 Significant Budget Modifications The Communication Services and Intergovernmental Relations Division Operating Budget for FY 2018- 19 is $2.1 million, a $0.1 million or 6% increase over the $2.0 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost-of-living adjustment, funding for an intern, and step increases for recently hired staff. The other primary cost change is in Other Expenses, for the required Proposition 218 Notice to customers in 2019, which is typically provided every two or more years. The Operating Budget for FY 2018-19 will address the challenges of educating customers regarding required rate increases that will fund a long-term capital plan to replace aging infrastructure on the treatment plant and throughout our collection system. This will be accomplished through a multi- pronged outreach campaign involving publications, media relations, a simplified Proposition 218 Notice, engaging public service announcements, social media posts, customer-focused construction communications, and through local government relations. Communication Services and Intergovernmental Relations also takes the lead role in conveying to customers and other government agencies how Central San responds to challenges facing the organization. This includes federal, state, and local advocacy, maintaining customer awareness of Central San's services, and promoting customer behavioral changes to reduce water pollution and impacts on Central San's infrastructure. 61 June 7, 2018 Regular Board Meeting Agenda Packet- Page 188 of 446 Page 70 of 264 Administration Department—Finance Finance OVERVIEW This Division is responsible for maintaining internal controls over financial reporting of all Central San funds and accounts. The Division administers the transactions related to cash and investments, debt service, cash receipts, accounts payable, sewer service charges and all other revenues, pension, and capital assets. The Division is also responsible for budget document preparation and coordinates the process with all other Departments at Central San. Monthly financial statements are prepared, reviewed, and analyzed by the Division and submitted to the Board of Directors for their review. Central San is subject to an annual external audit which is also administered and coordinated by the Division. Subsequent to the audit, the Division assembles the Comprehensive Annual Financial Report which is submitted to the Board of Directors and the Government Finance Officers Association. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: • Maintained a AAA credit rating with Standard & Poor's. Maintained a ratio of net operating revenue over debt service of at least 2:1. • Maintained service affordability by keeping the sewer service charge below the median of other Bay Area agencies. • Established a combination trust for Pension and Other Post-Employment Benefits in FY 2017-18. • Funded a new IRS Section 115 Pension Trust with $5.4 million toward unfunded pension liabilities. • Fully funded the Other Post-Employment Benefits actuarially determined Goal 3— contribution and paid an additional $2.5 million toward the unfunded Be a Fiscally Sound and liability. Effective Water Sector Utility Received an unmodified (clean) audit opinion on the financial statements. 17th year of receiving the Government Finance Officers Association award for financial reporting excellence. • Adopted updated Investment Policy. . Implemented Board approved Debt Management Policy in accordance with State Bill 1029 and appointed financial advisors. • Updated the Fiscal Reserve Policy and established a new investment account at Contra Costa County for improved tracking and segregation of funds. • Implemented an internal audit function and issued three internal audit reports. • Streamlined signature authority matrix/limits. • Produced the FY 2017-18 and FY 2018-19 budgets in-house after using Goal 6— graphic design consultant for the FY 2016-17 budget. Embrace Technology, • Mapped workflows in preparation for implementation of new Enterprise Innovation, and Resource Planning system. Environmental Sustainability . Used the Mentorship Program project to streamline the Capital Improvement Program budget information into the financial system. 62 June 7, 2018 Regular Board Meeting Agenda Packet- Page 189 of 446 Page 71 of 264 Administration Department—Finance Fiscal Year 2018-19 Key Metrics Metric Sewer Service Charge less than average of Bay Area agencies Service affordability maintained Sewer Service Charge plus Ad Valorem tax less than average of Bay Area agencies Standard & Poor's and Moody's Credit Ratings AAA/Aa1 Debt service coverage ratio Greater than 2.0 times Actual reserves as a percentage of target 100% Reported material weaknesses or significant deficiencies in Zero internal controls as part of annual financial audit Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Goal Strategy Initiative -a- I EUM Attribute—i Establish opportunities for internal Goal 1 — partnerships and cross-divisional Enterprise Resiliency Foster Employee collaborations. Provide Engagement and Exceptional Interdepartmental Employee and Customer Service Collaboration Cultivate employees' understanding of Leadership and Maintain an District operations and their role in the Development, Excellent agency's success. Enterprise Resiliency Reputation in the Maintain a Strong Continue to participate in industry trade Employee and Community Reputation in the organizations and apply for Leadership Community certifications and awards. Development Goal 2— Comply with All Re-examine existing Department and Federal, State, and Strive to Meet Administrative Procedures to ensure Regulatory Local Regulations compliance with applicable laws and Enterprise Resiliency Requirements Related to District regulations. Administration Ensure rate structure and fees are consistent with cost of service Financial Viability principles. Goal 3— Present alternative financial plans to the Be a Fiscally Conduct Long- Board in FY 2018-19 for necessary rate Responsible and Range Financial adjustments for FY 2019-20 onward, Financial Viability Effective Planning including considering the potential Wastewater Utility issuance of debt to fund CIP in conjunction with overall financial plan. Develop alternatives for new revenues and funding sources (e.g., interagency Financial Viability agreements, services, recycled water). 63 June 7, 2018 Regular Board Meeting Agenda Packet- Page 190 of 446 Page 72 of 264 Administration Department-Finance . . Strategy Initiative EUM Attribut4 Effectively manage the cost of employee benefits. Financial Viability Goal 3- Carry out targeted audits of critical/high Be a Fiscally risk functions. Enterprise Resiliency Responsible and Manage Costs Effective Re-engineer business processes and Wastewater Utility complete optimization studies to identify Operational opportunities to reduce costs and align Optimization with best practices. Goal 4- Recruit, Develop, Enhance Employee and and Retain a Relationship with Cultivate a positive work culture. Leadership Highly Trained Employees and and Safe Bargaining Units Development Workforce Goal 6- Encourage the Embrace Review and Testing Continue developing and investing in Technology, of Technology to Operational Innovation, and Optimize and cost-effective innovation, technology, Optimization Environmental Modernize Business and applied research and development. Sustainability Operations Budget Overview by Expense Category Account FY 2016-17 FY 2016-17 FY i17-18 FY 2017-18 FY 2018-19 Budget to Percent Budget Descnption Budget Actual Budget Projected Budget Projected variance Budget variance Vadance Variance Salaries& 51,155,209 $1,024,170 $1,222,311 $1,085,800 $1,211,950 $126,150 12% [$10,361] -1% Wages Employee S977.212 $858.944 $933,092 5877.957 5461.426 ($416,531) -47% ($471.666) •51% Benefits Unfunded SO SO s0 50 5343,153 3343,153 10D% $343,153 100% Liabilities. Repairs& $1,000 $0 $1,000 $500 $1,000 $50D 1DD% $0 0% Maintenance Professional& $113,750 $104,244 $225,750 $125,750 $243,000 $117,250 93%,$17,250 8% Legal Services Outside $223,500 $243,470 5145,900 $137,900 $148,800 510,900 896 $2,900 2% Services Materials& $9,800 $10,743 59,800 $9,800 510,000 $200 2% $200 2% Supplies Other $26,930 $11,822 $33,130 $17,055 $23,275 $6,220 36% ($9,855) -30% Expenses I Total $2,507,401 52.253.392 $2,570,983 $2,254,762 $2,442,604 $187,842 8% ($128,379}, -6% *Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. 64 June 7, 2018 Regular Board Meeting Agenda Packet- Page 191 of 446 Page 73 of 264 Administration Department—Finance Personnel Requirements : .rTn rr.IL . . Accountant JL 2.00 3.00 2.00 Accounting Technician III 3.00 3.00 3.00 Finance Administrator 2.00 2.00 2.00 Finance Manager 1.00 1.00 1.00 Payroll Analyst 1 0 1.00 0.00 Total 9.00 10.00 8.00 Significant Budget Modifications The Finance Division Operating Budget for FY 2018-19 is $2.5 million, a$0.1 million or 5% decrease over the $2.6 million budget in FY 2017-18. Salaries & Wages include the agency-wide cost of living adjustment, offset by the transfer of the Payroll Analyst to the Human Resources Division during FY 2017-18 and one Accountant vacancy repurposed to the Purchasing Division in FY 2018-19. The Professional Services budget increase is due to a required biennial actuary report in FY 2018-19. Other Expenses decrease is due to the inclusion of a non-usage allowance for tuition and professional expense reimbursement in FY 2018-19. Finance supports the agency by providing transparent financial information and works, in conjunction with the Engineering Department, to provide the rate and debt funding to address the principal issues facing Central San. The Division plays a significant role in specifying the costs of Central San's functions, how those costs drive the need for rate adjustments and in developing financial alternatives to keep rates moderated over the long-term through financing approaches. This data is used to document why spending is necessary, that rate levels are no more than necessary to meet essential needs, provide for long-term reliability, and appropriate levels of customer service. Finance will be working with other divisions to implement a new financial system, as part of the Enterprise Resource Planning System Replacement Project. The costs of the project are primarily budgeted in the capital budget, including funding for supplemental staffing related to the project. 65 June 7, 2018 Regular Board Meeting Agenda Packet- Page 192 of 446 Page 74 of 264 Administration Department—Human Resources Human Resources OVERVIEW This Division manages all Human Resources services, including employee/labor relations; recruitment, testing and selection; classification and compensation; employee benefits administration; District-wide training; organizational development, and all payroll functions. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: M14 • Completed Recruitment Training for all District employees. • Held various human resource topic related "brown bag" sessions District employees. • Held the second Management Academy. • Began the second Supervisory Academy. • Implemented annual Central San Mentorship Program. Goal 4— + Completed the Roles and Responsibilities of Public Employees Training for Develop and Retain a all District employees. Highly Trained and • Negotiated Kaiser Permanente and Delta Dental rate decreases of Innovative Workforce five percent and four percent, respectively, for FY 2017-18 premium rates, resulting in an annual savings of$297,130. • Implemented an additional tax-free commuter benefit to the existing Bay Area Commuter Benefit Program. • Partnered with the California Water Environment Association to assist in the development of the state-wide California Water Environment Association Testing Program. Fiscal Year 2018-19 Key Metrics 2 New employees attending customer service training within 100% 6 months of employment 7od Average time to fill vacancy(from request to hire) Less than 60 days Turnover rate at or below Bureau of Labor Statistics' (BLS) Less than or equal to 18.8% 2016 local government industry average Average annual training hours (external and internal 15 hours per full-time equivalent employee training) FTE Actual versus budgeted usage of training dollars Greater than 80% Participation in annual Wellness Expo Increase by 10% each year Internal promotions (excludes entry-level positions) Greater than or equal to 25% Formal grievances filed Zero Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% 66 June 7, 2018 Regular Board Meeting Agenda Packet- Page 193 of 446 Page 75 of 264 Administration Department—Human Resources Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Establish opportunities for internal Goal 1 — partnerships and cross-divisional Enterprise Resiliency Provide Foster Employee collaborations. Exceptional Engagement and Customer IntCollaboration Cultivate employees' understanding of Leadership ship oyee and Service and District operations and their role in the Development, Maintain an agency's success. Enterprise Resiliency Excellent Reputation in the Maintain a Strong Continue to participate in industry Employee and Community Reputation in the trade organizations and apply for Leadership Community certifications and awards. Development Comply with All Goal 2— Re-examine existing Department and and State,, Strive to Meet FederalAdministrative Procedures to ensure Regulatory Local Regulations compliance with applicable laws and Enterprise Resiliency Requirements Related to District regulations. Administration Goal 3— Effectively manage the cost of benefits. Financial Viability employee Be a Fiscally Responsible and Manage Costs Re-engineer business processes and Effective complete optimization studies to Operational Wastewater identify opportunities to reduce costs Optimization Utility and align with best practices. Assess, develop, and implement Employee and Ensure Adequate p° p Leadership Staffing and Training District-wide training needs. Development to Meet Current and and Employee Goal 4— Future Operational Recruit, develop, and train future Recruit, Develop, Levels leaders. Leadership and Retain a Development Highly Trained Employee and and Safe Enhance Cultivate a positive work culture. Leadership Workforce Development Relationship with p Employees and Sustain and grow collaborative Stakeholder Bargaining Units relationships with the labor bargaining Understanding and units. Support Goal 6— Encourage the Embrace Review and Testing Continue developing and investing in Technology, of Technology to cost-effective innovation, technology, Operational Innovation, and Optimize and and applied research and Optimization Environmental Modernize Business development. Sustainability Operations 67 June 7, 2018 Regular Board Meeting Agenda Packet- Page 194 of 446 Page 76 of 264 Administration Department-Human Resources Budget Overview by Expense Category Account FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Budget to Percent Budget to Percent Description Budget Actual BudgetBudget Variance Vairiance Salaries& $727,877 $625,986 $1,049,32351,052,800 $1,263,408 $210,608 20% $214,085 20% Wages _._.`.. ._ Employee $3,102,572 S491225 52.553.199 52,836.107 S2.071.145 ($764,962) -27% (5482,054) -19% Benefits _ Retiree $5,362,300 57.904.628 $5.946.000 $5.620.960 $4.358,400 (S1,262,500) -22% ($1,587,600) -27% Benefits I_ Unfunded 50 So SO SO S1,852,454 $1,852,454 900% $1,852,454 100% Liabilities Additional $2,500,000 $2,500,000 $2,500,000 52,500,000 $2,500,000 $o 0% 5o 0% UAAL Contributions" Repairs& $0 $0 $7,500 $3,000 $3,500 $500 17% ($4,000) -5396 Maintenance Professional& $126,100 $104,189 5166,450 $166,450 $166,450 s0 0% s0 096 Legal Services _ Outside $249,300 $377,165 $319,20D $344,200 $345,000 $800 0% $25.800 8% Services Materials& 518,000 622,959 520,000 520,200 f 531,000 $10,800 53% 511,00055% Supplies _ Other $18,115 $19,374 $18,115 $20,830 $18,080 ($2,750) -13% ($35) 0% Expenses Total $12,104,264 $12,045,527 $12,579,787 $12,564,487 512,609,437 544,950 0% 529,650 096 *'Unfunded Liabilities were broken out in FY 2018-19 and included in Employee and Retiree Benefits line item in prior years. **Additional UAAL: Costs for additional discretionary contributions to pay down employee related liabilities for the entire Central San active and retiree base. These payments may be directed by the Board towards pension or OPEB liabilities. Personnel Requirements Regular Status . .yees FY2r 17 i2018-19 YE Actual Human Resources Analyst 3.00 3.00 2.00 Human Resource Manager 1.00 1.00 1.00 Senior Administrative Technician Payroll Analyst 0.00 0.00 1.00 Total 5.00 5.00 6.00 Significant Budget Modifications The Human Resources Operating Budget for FY 2018-19 is $12.6 million, which remained flat compared to the $12.6 million budget in FY 2017-18. Salaries & Wages include the agency-wide cost of living adjustment, and the transfer of the Payroll Analyst position from Finance to Human Resources in FY 2017-18, which was offset by cost savings from replacing a Human Resources Analyst position with a Senior Administrative Technician position. The increase in Outside Services is due to an increased number of recruitments for vacant positions and the cost for advertising and outreach. Materials & Supplies increase is due to the transfer of the Employee Activities Organization costs from the Office of the Secretary of District, and the transfer of expenses related to the Bring your Child to Work Day event from Communication Services and Intergovernmental Relations. Certain costs relating to all Central San employees or retirees are centrally budgeted in the Human Resources Division. The following are items budgeted in Human Resources but not specific to that division: • Salaries and wages includes $400,000 for Compensated Absences Accrual Payments. 68 June 7, 2018 Regular Board Meeting Agenda Packet- Page 195 of 446 Page 77 of 264 Administration Department—Human Resources • Employee benefits includes $450,000 for Accrued Compensated Absences, $30,000 for Unemployment expenses. • Retiree benefits includes all costs related to retirees including health insurance, dental insurance, and life insurance. • Unfunded Liabilities includes the costs for pension and OPEB trust payments. These costs are due primarily to past investment performance not meeting actuarial assumptions, changes in actuarial assumptions and de-pooling of Central San's staff from other participating agencies of the Contra Costa County Employees' Retirement Association and from OPEB prefunding only starting in 2009. These expenses are shown separately in FY 2018-19 and prospectively. Human Resources plays an important role in meeting the overall challenges that Central San is addressing by working to ensure an engaged and motivated workforce. This includes administering the employee performance review and performance planning process; administering the labor memorandums of understanding, attracting and retaining talented employees through a competitive pay and benefit structure, and providing training programs to ensure Central San managers, supervisors and employees have the tools and knowledge to contribute to a high-performance organization. 69 June 7, 2018 Regular Board Meeting Agenda Packet- Page 196 of 446 Page 78 of 264 Administration Department—Information Technology Information Technology OVERVIEW This Division supports all computer hardware, software, and telecommunications needs at Central San, and assists with improvement and automation of Central San business processes. Fiscal Year 2017-18 Accomplishments This Division had many accomplishments related to the following Central San Goals: Received Municipal Information Systems Association of California (MISAC) Award of Excellence for the first time. This award demonstrates that Central San has implemented best practices across the spectrum of IT services. • Upgraded various software to latest versions including LabWorks software, Goal 1 — WonderWare and Dynac server software, CityWorks tablets, SunGard ERP Provide Exceptional and AutoCAD software. Customer Service • Implemented expanded network monitoring tools through Solar Winds. • Closed 2,242 help desk tickets with 98% of survey responses rating the service level as 5 stars. • Maintained the network with better than 99.9% uptime overall. • Fully implemented live replication of major business systems between the Martinez campus and the Collection System Operations (CSO) division as well as our new Rocklin co-location facility. • Automated timekeeping and leave requests with Intellitime software to eliminate manual paper methods. . Implemented new public facing web site technology to make it easier to update, Goal 6— facilitate mobile devices, make our website more engaging and to transform the Embrace Technology, way we interact with our customers. Innovation, and • Rolled out over 30 new iPads with CityWorks for Treatment Plant staff. Environmental • Assisted in the acquisition of a new automatic vehicle location system for all Sustainability Central San vehicles. . Began live-streaming of Board meetings in the lobby and on web-accessible devices. • Worked with Asset Management Division to roll out IT Pipes video inspection system. • Worked with Secretary of the District staff to acquire and implement Novus Agenda to automate the agenda management process. . Detected and blocked over 3,200 attacks on our internet, 9,000 malware attempts via web searches and 2,500 viruses through our email system. 70 June 7, 2018 Regular Board Meeting Agenda Packet- Page 197 of 446 Page 79 of 264 Administration Department—Information Technology Fiscal Year 2018-19 Key Metrics Information system outages affecting normal business 100% uptime operations Data backup and recovery Zero Lost Data Operating expenditures as a percentage of operating budget Greater than 95% Percentage of performance evaluations completed on time 100% Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Build External Invest in business process changes and Customer technologies to effectively increase access Customer Relationships and to District information and promote Satisfaction Awareness customer care, convenience, and self- service. Goal 1 — Provide Exceptional Establish opportunities for internal Enterprise Customer Service partnerships and cross-divisional Resiliency and Maintain an Foster Employee collaborations. Excellent Engagement and Reputation in the Interdepartmental Employee and Community Collaboration Cultivate employees' understanding of Leadership District operations and their role in the Development, agency's success. Enterprise Resiliency Maintain a Strong Continue to participate in industry trade Employee and Reputation in the organizations and apply for certifications Leadership Community and awards. Development Comply with All Goal 2— FederalStateand Re-examine existing Department and , , Strive to Meet Administrative Procedures to ensure Enterprise Regulatory Local Regulations compliance with applicable laws and Resiliency Requirements Related to District regulations. Administration Goal 3— Re-engineer business processes and Operational Be a Fiscally complete optimization studies to identify Optimization, Responsible and Manage Costs opportunities to reduce costs and align Enterprise Effective with best practices. Resiliency Wastewater Utility , Goal 4— Recruit, Develop, Enhance Relationship Employee and and Retain a I with Employees and Cultivate a positive work culture. Leadership Highly Trained Bargaining Units Development and Safe Workforce _ Goal 5— Protect District Enhance capability to mitigate, prepare for, Maintain a Personnel and Assets respond to, and recover from Enterprise Reliable from Threats and Resiliency Infrastructure Emergencies emergencies. 71 June 7, 2018 Regular Board Meeting Agenda Packet- Page 198 of 446 Page 80 of 264 Administration Department—Information Technology Evaluate and implement appropriate Enterprise improvements to the Security Program to Resiliency meet new or evolving threats. Operational Facilitate Long-Term Implement the Program Management Optimization, Capital Renewal and Information System (PMIS). Infrastructure Replacement Strategy and Performance Select and implement new Enterprise Operational Resource Planning (ERP)system and Goal 6— integrate with linked systems. Optimization Embrace Encourage the Technology, Review and Testing Expand and improve the use of worthwhile of Technology to Operational Innovation, and Optimize and mobile computing and communication Optimization Environmental Modernize Business technologies. Sustainability Operations p Continue developing and investing in cost- Operational effective innovation, technology, and applied research and development. Optimization Budget Overview by Expense Category Account FY i i i2018-19 Budget to Percent Budget to Perceryt Description Bu..et Actual Budget Projected BudgetProjected .. Variance Variance Salaries& $1,393,793 $1,382,628 $1,508,704 $1,381,600 $1,569,307 $187,707 14% $60,603 4% Wages. Employee 51,195,703 511186,753 51,219,553 $1,145,974 $729,744 (5416,230) -6% (5489.809) 40% Benefits 1. Unfunded $0 $0 $o 30 $509.668 $509,668 100% $509.668 100% Liabilities;! _ Utilities $95,040 $116,383 _$M,440 $125,900 $129,8001 $3,900 3% (516640) -11%i Repairs& $767,650 $698,850 $886,750 $888,700 $1,047,090 $158,390 18% $160,340 1896 Maintenance Outside $196,000 591.005 5125,000 $125,040 $110,000 {515,000) -12% ($95,000) -12% Services Materials& $10,200 $21,061 $61200 $6,200 $6,200 $0 0% 3o 0% Supplies _ Other 542,566 531,812 545,935 530.961 535,525 54.564 15% (S10.410) -239i Expenses Total S3,700,951 $3.528,391 S3.938,5821 53,704.335 54.137,3341 5432.999 12% 5198,752 5961 *Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. 72 June 7, 2018 Regular Board Meeting Agenda Packet- Page 199 of 446 Page 81 of 264 Administration Department—Information Technology Personnel Requirements FY 2016-17 FY 2017-18 FY 2018-19 : .. . . YE Actual Information Technology Analyst 1.00 1.00 0.00 Information Technology Manager 1.00 1.00 1.00 Information Technology Supervisor Programmer Analyst 0.00 1.00 0.00 Project Manager/Business Analyst 1.00 1.00 System Administrator 2.00 2.00 2.00 Technical Support Analyst Information Technology Analyst II 0.00 0.00 2.00 Total 10.00 11.00 11.00 Significant Budget Modifications The Information Technology(IT) Division Operating Budget for FY 2018-19 is $4.1 million, a$0.2 million or 5% increase over the $3.9 million budget in FY 2017-18. The increase in Salaries &Wages include the agency-wide cost of living adjustment and increases due to step advancements. The Repairs & Maintenance increase is due to movement of plant control software into the IT budget, costs for new software maintenance (including NovusAgenda, eBuilder Program Management Information System), and increases to annual support maintenance contracts. The Outside Services decrease is due to changes in network consultant utilization. The Other Expenses decreased is due to an off-site storage service no longer being used in FY 2018-19. 73 June 7, 2018 Regular Board Meeting Agenda Packet- Page 200 of 446 Page 82 of 264 Administration Department—Purchasing and Materials Services Purchasing and Materials Services OVERVIEW This Division provides the necessary materials, supplies, equipment, services and information to support Central San's operations. The Division is responsible for contracting and procurement for all Central San departments (except construction contracts), and ensuring compliance with applicable federal, state and local regulations. Central San's warehouse inventories, receives, and distributes supplies, materials and equipment to all departments in addition to providing inventory control analysis and surplus disposition. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: Developed high level flowchart outlining the different types of procurements at the District and the associated processes and approvals with each type. • Leveraged spend through annual requirements contracts for 40% of the total procurement spend for goods and services, not including construction, construction related professional services, and utility payments. This improved efficiency, shortened the procurement processing time, and provided savings through negotiated pricing contracts. • Simplified requisition approval process from 18 different levels of approval down to three levels of approval based on position to ensure consistency and efficiency in the requisition approval process. • Implemented a work order tracking system of all requisitions, including a customer satisfaction survey for each purchasing transaction. • Promoted open competition and equal opportunity for qualified suppliers and service providers by successfully soliciting and awarding high-level service Goal 3— and commodity-based contracts, such as financial advisory services, Be a Fiscally Sound and timekeeping system, Pipeline newsletter printing and mail processing Effective Water Sector services, core network switch upgrade, vibration monitoring and reporting, Utility repairing seeps in soil cap, furnishing and installing water softener system, repairing furnace#2 refractory, pharmaceutical collection program, solids residence time (SRT) controller, fire extinguisher inspection and maintenance, auditing services, vehicle wraps for Central San logos, and equipment budget items. • Implemented automatic notifications of upcoming expiring contracts to project managers to ensure contract renewals are done in a timely manner. • Provided ongoing administration of the procurement card program, including oversight, problem solving, reviewing, updating, and training. Also, received procurement card audit and made improvements in areas identified. • Managed an inventory of approximately$2.2 million at three locations, including ordering, storing, issuing, receiving and delivering. • Completed cycle counts for 753 "A" items counted twice, 1,311 "B" items counted twice, and 3,200 "C" items counted once while maintaining a 95% count accuracy rate. • Received the Achievement of Excellence in Procurement(AEP)Award Goal 6— recognizing organizational excellence in public purchasing for the 7th Embrace Technology, consecutive year. Innovation, and • Implemented RFP evaluations online, replacing a manual, labor-intensive Environmental process with a streamlined and fully automated process for evaluating Sustainability proposals online and creating reports to substantiate the evaluation committee's recommendation for award. 74 June 7, 2018 Regular Board Meeting Agenda Packet- Page 201 of 446 Page 83 of 264 Administration Department—Purchasing and Materials Services Fiscal Year 2018-19 Key Metrics Purchasing internal customer survey rating of satisfactory or Greater or equal to 70% better Difference in inventory value in Purchasing database vs. Less than 1% value submitted to Accounting Accuracy of physical inventory count vs. book value Greater or equal to 95% Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Goal ateg Initiative UM Attribute Build External Invest in business process changes Customer and technologies to effectively Relationships and increase access to District information Customer Satisfaction Awareness and promote customer care, Goal 1 — convenience, and self-service. Provide Establish opportunities for internal Exceptional partnerships and cross-divisional Enterprise Resiliency Customer Service Foster Employee collaborations. and Maintain an Engagement and Employee and Excellent Interdepartmental Cultivate employees' understanding of Leadership Reputation in the Collaboration District operations and their role in the Development, Community agency's success. Enterprise Resiliency Maintain a Strong Continue to participate in industry Employee and trade organizations and apply for Reputation in the certifications and awards. Leadership Community Development Comply with All Goal 2— Re-examine existing Department and and State,, Strive to Meet FederalAdministrative Procedures to ensure Regulatory Local Regulations compliance with applicable laws and Enterprise Resiliency Requirements Related to District regulations. Administration Goal 3— Re-engineer business processes and Be a Fiscally Operational Responsible and Manage Costs complete optimization studies to Optimization, Effective identify opportunities to reduce costs Enterprise Resiliency Wastewater Utility and align with best practices. Goal 4— Enhance Recruit, Develop, Relationship with Employee and and Retain a Cultivate a positive work culture. Leadership Highly Trained and Employees and Development Safe Workforce Bargaining Units Goal 6— Encourage the Embrace Review and Testing Continue developing and investing in Technology, of Technology to cost-effective innovation, technology, Operational Innovation, and Optimize and and applied research and Optimization Environmental Modernize development. Business Sustainability Operations 75 June 7, 2018 Regular Board Meeting Agenda Packet- Page 202 of 446 Page 84 of 264 Administration Department-Purchasing and Materials Services Budget Overview by Expense Category Account FY 2016-17 IFY r F2018-19 Budget to Percent Budget to Percent ProjectedDescFiption Budget Actual Budget Projected Variance Variance Salaries& $857,600 $837,899 $1,001,079 $843,900 $1,058,883 $214,983 25% $57,804 6% Wages L Employee $782,607 $700,280 $834,953 $785,474 $508,940 [$276,534] -35% ($326,013)l -39% 'Benefits Unfunded SO $0 so�SO' $346,563 S34S,563 100% 5348.563 100% Liabilities' Repairs& $23,000 $110,382 $23,000 $23,000 $23,000 $0 0% so 0% _Maintenance Professional& $35,000 $3,828 535,000 $20,000 f $35,000 $15,000 75% SO 0% Legal Services. I _ Outside $29,000 $5,135 $29,000 $29,000 $49,000 $20,000 69% $20,000 69% Services Materials& $14,000 $17,419 $14,000' $14,000 $14,000 $0 0% $0 0% Supplies Other $29,900 $2,490 $211900 $16,900 $15,900 ($1,000) -6% ($6,000) -27% Expenses Total S1,763,1107S1 577 434 1 $1,958,932 $1,732,274 $2,051.286 $319,0121 118%1 592,354 5% Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. Personnel Requirements t t Materials Coordinator 00 1.00 Materials Services Supervisor 1.00 1.00 1.00 Purchasing and Materials Manager 1.00 1.00 1.00 Senior Buyer 3.00 3.00 3.00 Senior Materials Coordinator 1.00 IL 1.00 2.00 Contracts Analyst 0.00 0.00 1.00 Total 8.00 8.00 9.00 I . Warehouse Summer Student 0.00 1.00 1.00 7 Total 0.00 1.00 1.00 Significant Budget Modifications The Purchasing and Materials Services Division Operating Budget for FY 2018-19 is $2.1 million, a $0.1 million or 5% increase over the FY $2.0 million budget in FY 2017-18. The increase in Salaries & Wages includes the agency wide cost-of-living adjustment, the movement of a position from the Finance Division(an Accountant position will be repurposed as a Contracts Analyst to support the increase in contracting related to higher capital spending in the coming years), and the promotion of a Materials Coordinator to Senior Materials Coordinator. The Division also expects to utilize a General Manager- transition position to provide overlap for potential retirements within the unit and ensure optimal transition for succession planning. The Outside Services increase is due to a special projects consultant to assist the Division in identifying and implementing performance improvements. The Other Expenses decrease is due to a reduction in professional expense reimbursements. 76 June 7, 2018 Regular Board Meeting Agenda Packet- Page 203 of 446 Page 85 of 264 Administration Department—Purchasing and Materials Services The Division is helping to address the overall challenges facing Central San by working to ensure there is sufficient procurement processing capacity in light of increased contracting for infrastructure needs. This includes the new Contract Analyst position; working to implement the new Enterprise Resource Planning (ERP) system which is anticipated to significantly improve contracts management and automated procurement functionality; and providing staff with better tools for productivity and internal customer service. Purchasing, along with Capital Projects, will also work to adopt the Uniform Public Construction Cost Accounting Act. This was approved by the Board in May 2018, and will be implemented on September 1, 2018. This is expected to provide for a streamlined contracting process for smaller projects and needed work. 77 June 7, 2018 Regular Board Meeting Agenda Packet- Page 204 of 446 Page 86 of 264 Administration Department—Risk Management Risk Management OVERVIEW This Division protects Central San from loss or damage to its personnel and assets. It manages Workers' Compensation, liability claims, security programs, insurance procurement, self-insurance funding, contract and insurance review, litigation support, and Central San's Emergency Preparedness and Response Programs. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: Goal 3— Prepared and presented Risk Management Annual Report to the Board. Be a Fiscally Sound and Provided Temporary Modified Duty to 100% of employees with occupational Effective Water Sector injuries. Utility • Received reimbursement from FEMA& CalOES for the January 2017 Winter Storms. • Initiated work on the Security Assessment Master Plan. • Completed 5-year update of the Local Hazard Mitigation Plan. • Updated various security policies. Goal 5— • Established the Security Coordination Committee. Maintain a Reliable • Coordinated biannual Risk Control Audit of District Operations and Practices. Infrastructure e Updated the Emergency Operations Plan. • Completed Vital Records section of Continuity Plan. • Prepared and presented Emergency Management Annual Report to the Board. Fiscal Year 2018-19 Key Metrics Workers' compensation experience modifier Less than 1.0 Temporary modified duty provided (Return to Work program) Greater than 95%of recordable injuries Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% 78 June 7, 2018 Regular Board Meeting Agenda Packet- Page 205 of 446 Page 87 of 264 Administration Department—Risk Management Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Establish opportunities for internal Enterprise Resiliency Foster Employee partnerships and cross-divisional Goal 1 — Engagement and collaborations. Provide Interdepartmental Cultivate employees' understanding Employee and Exceptional Collaboration of District operations and their role Leadership Customer Service in the agency's success. Development, and Maintain an Enterprise Resiliency Excellent Continue to participate in industry Employee and Reputation in the Maintain a Strong trade organizations and apply for Leadership Community Reputation in the certifications and awards. Development Community Continue to participate in CaIWARN Community to provide mutual aid to sister Sustainability agencies. Goal 2— Comply with All Re-examine existing Department Strive to Meet Federal, State, and and Administrative Procedures to Regulatory Local Regulations ensure compliance with applicable Enterprise Resiliency Requirements Related to District laws and regulations. Administration Evaluate and apply risk management practices to minimize Enterprise Resiliency Goal 3— loss. Be a Fiscally Responsible and Manage Costs Effective Wastewater Utility Re-engineer business processes Operational and complete optimization studies Optimization, to identify opportunities to reduce Enterprise Resiliency costs and align with best practices. Goal 4— Recruit, Develop, Enhance Relationship Employee and and Retain a with Employees and Cultivate a positive work culture. Leadership Highly Trained Bargaining Units Development and Safe Workforce Enhance capability to mitigate, prepare for, respond to, and Enterprise Resiliency Goal 5— Protect District recover from emergencies. Maintain a Personnel and Assets Reliable from Threats and Evaluate and implement Infrastructure Emergencies appropriate improvements to the Security Program to meet new or Enterprise Resiliency evolving threats. Goal 6 - Encourage the Review Embrace and Testing of Continue developing and investing Technology, Technology to in cost-effective innovation, Operational Innovation, and Optimize and technology, and applied research Optimization Environmental Modernize Business and development. Sustainability Operations 79 June 7, 2018 Regular Board Meeting Agenda Packet- Page 206 of 446 Page 88 of 264 Administration Department-Risk Management Budget Overview by Expense Category Account FY 2016-17 FY 2016-17 FY 2017-1 B FY 2017-18 FY rBudget BudgetDescnption Budget Actual Projected Budget Projected Variance Budget Variance Vafiance Salaries& $238,944 $210,225 $240,149 $144,200 $262,093 $117,893 82% $21,944 9% Wages Employee $228,392 $207,251 —S196,621 $184.861 5101.561 ($83,300) -45% (5957060) 48% Benefits Unfunded $0 SO so T 50 S87.304 S87,304 100%' $87,304 100% Liabilities Repairs& $35,000 $4.572 $57,500$15,500 542,500 $27,000 17496 ($15,000), -26% Maintenance Professional& $81,800 540.808 $28,8130 $19,000 $28,350 $7,350 3996 ($2,450). -9% Legal Services _ Outside 5408.x00 S267.565 $423,000 i $328,500 S453.500 $125,000 3896 530.500 7% Services Self-Insurance $920.000 5920.000 5585,000 $585,000 $779.500 $194,500 33% $194;500 33% Expense �- Materials& $103,000 S5.610 559.000 $53,000 553.000 $0 0% ($6,000) -10% Supplies _ Other 513,650 S12.076 S14,6501 $10,015 S17,500 $7,485 75% $2,850 19% Expenses Total' $2,008,786 S1.668.104 j $1,604,720 51.340.076 $1,823,308 $483,232 36% $218.588 1496 Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. Personnel Requirements EmployeesRegular Status FY 17 i2018-19 YE Actual anagement Administrator 1 nn 1.00 1.00 Iisk Management Specialist 0.00 0.00 1.00 isk Management Analyst Im 0.00 1.00 0.00 Total 1 1.00 2.00 2.00 Significant Budget Modifications The Risk Management Operating Budget for FY 2018-19 is $1.8 million, a $0.2 million or 14% increase over the $1.6 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living adjustment and the reclassification of a Risk Management Technician to a Risk Management Specialist. Increases in the FY 2018-19 budget include Outside Service, for specialized consulting service to enhance the Emergency Operations Plan and the Continuity of Operations Plan, and Self-insurance, to replenish the self-insurance fund to the required Reserve Policy target. The Repairs & Maintenance decrease is due to a transfer of camera repair expenses to the Information Technology division. The recent fires, floods, and mudslides in California demonstrated the need for properly equipped and maintained emergency communications systems. Materials & Supplies includes funds to purchase additional interoperable radios for vehicles and operations personnel. Our goal is to have sufficient radios for an event requiring both emergency response and continuity functions. Risk Management will expand its services in FY 2018-19 by making progress on an enterprise risk management program that uses a continuously updated risk inventory as a foundation for managing risks. This risk inventory will be used in Central San's internal audit program, and in reporting key risks and mitigation strategies to the Board. Risk Management assists Central San in managing risks (broadly defined as anything that can impede Central San from meeting its strategic goals) effectively. Building 80 June 7, 2018 Regular Board Meeting Agenda Packet- Page 207 of 446 Page 89 of 264 Administration Department—Risk Management this program's capacity will be an important tool in helping Central San mitigate risks as the agency ramps up the level of capital spending in the coming years, and in meeting evolving regulatory requirements. Risk Management helps Central San meet these and other challenges of the environment in which the agency operates. 81 June 7, 2018 Regular Board Meeting Agenda Packet- Page 208 of 446 Page 90 of 264 Administration Department—Office of the General Manager and Office of the Secretary of the District Office of the General Manager and Office of the Secretary of the District Office of the General Manager - Overview The primary mission of the Office of the General Manager is to work with the Board to establish policies and procedures, as well as the overall goals and Strategic Plan of Central San. The General Manager reports directly to the Board and provides general oversight to all Central San operations, interagency relations, legislative activities, communications, and the Strategic Plan. Office of the General Manager - Fiscal Year 2017-18 Accomplishments and Fiscal Year 2018-19 Strategic Initiatives This office provides direction, support and resources to Departments to effectively and efficiently accomplish the Mission, Vision and Goals of Central San. The accomplishments and FY 2018-19 Strategic Initiatives for Central San are embodied in each of the individual Divisions and programs. Highlights of Central San's accomplishments are included in the General Manager's message at the beginning of this book. Central San also documented major efficiency and operational improvements in a report entitled "Innovations and Achievements" and documented over 200 standard operating procedures District-wide. Office of the Secretary of the District - Overview The Secretary of the District reports directly to the Board and provides administrative support to the five elected Board Members. The Office of the Secretary of the District manages the Board and Committee meeting processes, including the preparation and distribution of agendas and minutes and the publication of notices of public hearings. It coordinates compliance with Fair Political Practices Commission regulations and the Brown Act, receives legal claims against Central San, coordinates elections with the County Elections Office, and arranges Ethics training and Brown Act training for the Board and staff. It also manages Central San's Records Management Program and responds to Public Records Act requests. 82 June 7, 2018 Regular Board Meeting Agenda Packet- Page 209 of 446 Page 91 of 264 Administration Department—Office of the General Manager and Office of the Secretary of the District Office of the Secretary of the District Fiscal Year 2017-18 Accomplishments The Office of the Secretary of the District had several accomplishments related to the following Central San Goals: • Successfully transitioned new Secretary of the District upon retirement of prior Secretary of the District. • Coordinated all regular and special meetings of Board of Directors and Standing Board Committees, including publishing all agenda packets in a timely manner. • Coordinated Board Self-Assessment Workshop and annual review of Board Compensation and Benefits. Goal 1 — 0 Facilitated adoption of the following new Board policies: Debt Provide Exceptional Management and Continuing Disclosure, Cost of Service Studies, Use of Customer Service Temporary Employees, Reimbursement of Toastmasters Dues, and Conducting District Business Using Personal Accounts and Devices. Coordinated biennial review of existing Board policies and facilitated amendments to the following Board policies: Board Ethics and Conduct; Standing Committee Protocols, Guidelines and Charters; Fiscal Reserves: and Investment Policy. Facilitated newly mandated biennial Sexual Harassment Prevention Training for Board Members. Goal 3— Retained a consultant to work with staff to upgrade the Master Records Be a Fiscally Sound and Retention Schedule and lay foundation for management of electronic Effective Water Sector records Utility Goal 4— Conducted employee workshop on the Brown Act/Ethics Compliance. Develop and Retain a • Updated "Guide to the Board Meeting Process"for use by staff. Highly Trained and Innovative Workforce Goal 6— Embrace Technology, • Implemented NovusAgenda management software for Board and Innovation and Environmental Committee agendas. Sustainability Fiscal Year 2018-19 Key Metrics Biennial review of all existing Board policies 100% Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% 83 June 7, 2018 Regular Board Meeting Agenda Packet- Page 210 of 446 Page 92 of 264 Administration Department—Office of the General Manager and Office of the Secretary of the District Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Provide high-quality customer service. Customer Satisfaction Invest in business process changes and Build External technologies to effectively increase Customer Customer access to District information and Satisfaction Relationships and promote customer care, convenience, Goal 1 — Awareness and self-service. Provide Increase customer understanding and Stakeholder Exceptional support for key District initiatives, Understanding and Customer Service programs, and services. Support and Maintain an Establish opportunities for internal Enterprise Resiliency Excellent and cross-divisional Reputation in the Foster Employee partnerships CommunityEngagement and collaborations. Interdepartmental Cultivate employees' understanding of Collaboration District operations and their role in the Customer agency's success. Satisfaction Maintain a Strong Continue to participate in industry trade Employee and Reputation in the organizations and apply for certifications Leadership Community and awards. Development Goal 2— Comply with All Review all existing Board Policies every Enterprise Resiliency Strive to Meet Federal, State, and two years to ensure relevancy. Regulatory Local Regulations Re-examine existing Department and Requirements Related to District Administrative Procedures to ensure Enterprise Resiliency Administration compliance with applicable laws and regulations. Goal 4— Enhance Recruit, Develop, Relationship with Employee and and Retain a Highly Employees and Cultivate a positive work culture. Leadership Trained and Safe Bargaining Units Development Workforce Encourage the Goal 6— Review and Embrace Testing of Continue developing and investing in Technology, Technology to cost-effective innovation, technology, and Operational Innovation, and Optimize and applied research and development. Optimization Environmental Modernize Sustainability Business Operations 84 June 7, 2018 Regular Board Meeting Agenda Packet- Page 211 of 446 Page 93 of 264 Administration Department-Office of the General Manager and Office of the Secretary of the District Budget Overview_ by Expense Category io-INEFraimr Mf M- i Budget19 Budget to Percent Budget to Percent Description .g Variance Variance Sataries& $1,502,326 $1,546,723 $1,366,016 51,279,600 51,238,422 (341,178) -3%. ($127,594)! -9% Wages Employee $957,263 $1,517,991 $619,571 $992,286 $91,255 ($901,031) -91%5 ($528,316) -85% Benefits Unfunded 50 $0 50 50 $333,2110 $333,210 10095 $333,210 100% Liabilities' Director Fees $168,555 $136,316 $168,631 $150,881 $168,494 $17,613 12% ($137) 0% &Expenses__ _ Repairs& $10,800 $7.763 $10,800 $10,400 $14,300 $3.900 38% $3.500 32% Maintenance _ Professional& S145.000 S168.886 S150.000 $150,000 $175,000 S25.000 17% S25.000 17% Legal Services Outside $246,000 587,526 $146.000 $133,000 $150,000 S17.000 1395 $4.000 3% 'Services _ Materials& $20.150 $]5,612 $20,150 516,150 520.150 54,000 25% SO 0% Supplies _ T Other S559,905 $269,151 5148,325 S108,325 $388,430 $280,105 259% 5240,105 162% Expenses _ Total S3:619:999 $3,749,968 $2,629,493 52,840,642 52,579,261 (5261.381) -9% (550.232) 2% *Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. Personnel Requirements IF FY 2016-17 FY 2017-18 FY 2018-19 YE Actual Administrative Services Supervisor 1.00 1.00 1.00 Administrative Technician 0.00 0.00 1.00 Assistant to the Secretary of the District 1.00 1.00 00 Director of Finance&Administration 1.00 1.00 1.00 Executive Assistant 1.00 1.00 General Manager 1.00 1.00 1.00 Management Analyst 0.00 1.00 1.00 Secretary of the District 1.00 1.00 1.00 Senior Administrative Assistant Senior Administrative Technician 2.00 3.00 2.00 Total 9.00 11.00 11.00 7Clericalmmer Student 1.00 1.00 .00 Total 1.00 1.00 1.00 85 June 7, 2018 Regular Board Meeting Agenda Packet- Page 212 of 446 Page 94 of 264 Administration Department—Office of the General Manager and Office of the Secretary of the District Significant Budget Modifications The Office of the General Manager/Office of the Secretary of the District's Operating Budget for FY 2018-19 is $2.6 million, which remained flat compared to the $2.6 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living adjustment, offset by reductions due to staff turnover and lower costs for newer employees. Other drivers include an update of Central San's Record Retention Schedule and Procedures, resulting in an increase in Professional &Legal Services, and Fall 2018 election expenses resulting in an increase in Other Expenses. The Office of the General Manager,budgeted in this division, leads the effort to address all of the key priorities facing Central San, as described in the General Manager's budget message. The office of the Secretary of the District assures the ongoing flow of information to and from the Board, facilitating policy direction and oversight. 86 June 7, 2018 Regular Board Meeting Agenda Packet- Page 213 of 446 Page 95 of 264 Engineering and Technical Services Department 7. Y The Engineering and Technical Services Department consists of three Divisions that report to the Director of Engineering and Technical Services. The primary functions of the Engineering and Technical Services Department are the planning, design, construction and/or rehabilitation of treatment plant, collection system, and recycled water infrastructure. The Department also handles development services, including: right-of-way, property management, inspection, mainline plan review, and program management in resource recovery. Divisions within the department are responsible for environmental compliance monitoring of industrial businesses; regulatory compliance and permit monitoring; laboratory analysis; and management of the Household Hazardous Waste Collection Facility. The Divisions that comprise this Department include: • Capital Projects • Environmental and Regulatory Compliance • Planning and Development Services June 7, 2018 Regular Board Meeting Agenda Packet- Page 214 of 446 Page 96 of 264 Engineering and Technical Services Department—Capital Projects Division Capital Projects Division OVERVIEW This Division conducts and manages the preliminary design, final design, public bidding, and construction management of projects to improve or rehabilitate our wastewater treatment plant, pumping stations, collection system pipelines, general facilities, safety, and recycled water infrastructure projects. In addition, this Division works as one of the primary engineering resources at Central San. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: Goal Accomplishment � f • Received greater than 95% customer satisfactory rating, including: 100% satisfactory customer rating on the Lafayette Sewer Renovations— Phase 11, 98% satisfactory customer rating on the Walnut Creek Sewer Renovations— Goal 1 — Phase 11, 95% satisfactory customer rating on the Martinez Sewer Renovations— Provide Exceptional Phase 5, 80% satisfactory customer rating on the Pleasant Hill—Grayson Creek Customer Service Trunk Sewer. Coordinated and performed emergency sewer repairs on Miner Road in Orinda, a sewer repair near the Willows Shopping Center in Concord, and a sinkhole repair 1 at St. Mary's College in Moraga. • Completed construction of the Pleasant Hill-Grayson Creek Trunk Sewer Project, whose scope of work included installation of 10,000 feet of trunk sewer. • Replaced approximately five miles of various sewer mains (primarily 6-inch vitrified clay sewers)with new 8-inch sewers in Lafayette, Martinez, Walnut Creek, and several locations within unincorporated Contra Costa County. • Awarded five projects in the Collection System Program, totaling up to seven miles of new sewers for Alamo, Lafayette, Moraga, Orinda, Walnut Creek, and several other locations within unincorporated Contra Costa County. Goal 5— • Initiated design of several collection system sewer replacement projects in Maintain a Reliable Lafayette, Orinda, Walnut Creek, and other locations throughout the service area. Infrastructure • Completed the predesign on the Pumping Station Upgrades Project, which includes the Moraga, Orinda Crossroads, and FlushKleen Pumping Stations. • Completed construction of two wastewater treatment plant projects: 1. Pump and Blower Building Seismic Upgrades, which retrofitted the Pump and Blower Building by adding shear walls and steel braces to strengthen the building to current seismic code standards and support employee safety; and 2. The Co-Gen Optimization Project, which included installation of a carbon monoxide catalyst and evaporative cooling system to the gas turbine at the Solids Conditioning Building. Goal 6— Completed construction of the Co-Gen Energy Optimization Project to increase Embrace energy efficiency and reduce emissions for the treatment plant. Technology, • Supported and completed a pilot-scale facility to test newer air pollution control Innovation, and technology at the treatment plant. Environmental • Supported the BioEnergy project, and other thermal solids energy production Sustainability projects such as the Hypowers pilot project to produce biocrude from solids. 88 June 7, 2018 Regular Board Meeting Agenda Packet- Page 215 of 446 Page 97 of 264 Engineering and Technical Services Department—Capital Projects Division Fiscal Year 2018-19 Key Metrics Median customer satisfaction rating on construction projects Greater than 95% Greater than 0.5% of assets Miles of pipeline replaced (7.6 miles per year for the next five years starting in FYs 2018- 20) Capital expenditures as a percentage of capital budgeted cash flow Greater than 90% including carry forward Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Build External Customer Provide high-quality customer Customer Satisfaction Relationships and service. Awareness Establish opportunities for internal Goal 1 — Foster Employee partnerships and cross-divisional Enterprise Resiliency Provide Exceptional Engagement and collaborations. Customer Service Interdepartmental Cultivate employees' understanding Employee and Leadership and Maintain an Collaboration of District operations and their role Development, Excellent Reputation in the in the agency's success. Enterprise Resiliency Community Continue to participate in industry trade organizations and apply for Employee and Leadership Maintain a Strong certifications and awards. Development Reputation in the Community Minimize impacts to residents and businesses during design and Customer Satisfaction construction of projects. Goal 2— Comply with All Strive to Meet Federal, State, and Re-examine existing Department and Administrative Procedures to Regulatory Local Regulations ensure compliance with applicable Enterprise Resiliency Requirements Related to District laws and regulations. Administration Goal 3— Be a Fiscally Review business processes and Responsible and Manage Costs complete optimization studies to Operational Optimization, Effective identify opportunities to reduce Enterprise Resiliency Wastewater Utility costs and align with best practices. Goal 4— Enhance Recruit, Develop, Relationship with Employee and Leadership and Retain a Highly Employees and Cultivate a positive work culture. Development Trained and Safe Bargaining Units Workforce 89 June 7, 2018 Regular Board Meeting Agenda Packet- Page 216 of 446 Page 98 of 264 Engineering and Technical Services Department-Capital Projects Division EUM Attribute . . Update the Ten -Year Capital Manage Assets Improvement Program (CIP) Optimally consistent with recommendations of Infrastructure Strategy Throughout Their the Comprehensive Wastewater and Performance Lifecycle Master Plan and Asset Management. Integrate data from the Asset Management Program into the analysis of long-term Capital Infrastructure Strategy Facilitate and Performance Long-Term Capital Improvement needs based on the Goal 5- Renewal and Ten -Year CIP. Maintain a Reliable Replacement Complete the implementation of the Operational Optimization, Infrastructure Program Management Information Infrastructure Strategy System (PMIS). and Performance Evaluate and implement Protect District appropriate improvements to the Security Program to meet new or Enterprise Resiliency Personnel and y g Assets from evolving threats. Threats and Emergencies Improve the potable water system and enhance water quality testing Product Quality procedures. Goal 6- Encourage the Embrace Review and Testing Continue developing and investing Technology, of Technology to in cost-effective innovation, Innovation, and Optimize and technology, and applied research Operational Optimization Environmental Modernize and development. Sustainability Business Operations Budget Overview by Expense Category Account FY 2016-17 FY 201&17 FY 2017-18 FY 2017-18 FY r`18-19 Budget to Percent Budget Description ..et Actual Budget Projected Budget Projected Variance Budget Variance Variance Salaries& $1,879,280 $1,679,199 51,887,522 $1,643,100 $1,959,112 $316,012 19% $71,590 4% Wages _ Employee ($887,526) ($1,053,380) ($1,279,905) ($1,347,824) ($1,851,611) ($503,787) 37% ($571,706) 45% _!Benefits _ Unfunded $0 $0 $0 $0 $585,833 $585,833 100% $585,833 100% _Liabilities_ Utilities $24,000 $15.737 $21,600 $22,387 $22,800 $413 2% $1,200 646- Repairs %Repairs& $19,500 $8,862 $3,500 $3,000 $3,000 $o 0% ($500] -14% Maintenance Outside $7345 532,160 $44,725 $34,6001 541,100 $6,500 19% ($3,625) -8% Services Materials& $32,300 $23,107 $30,700 $27,559 $28,700 $1,141 4% ($2,000) -7% Supplies Other $59,1251 S26,205 $58,280 $40,800 $46,920 $6,120 15% (511,360) -19% Expenses Total $1,199,904 $731,890 $766,422 S423;622 $835,854 $412,232 97% $69,432 9% *Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. Note: The staff in this Division are budgeted with the Capital Improvements Program.As a result, 98% of their combined salary and benefit expenses are paid for by the projects identified in the Capital Improvement Budget. The amounts above are net of the capitalized administrative overhead transfer to the Sewer Construction Fund. 90 June 7, 2018 Regular Board Meeting Agenda Packet- Page 217 of 446 Page 99 of 264 Engineering and Technical Services Department-Capital Projects Division Personnel Requirements FY Employees17 Y Regular Status Actual i i Administrative Assistant 1.00 2.00 2.00 Assistant Engineer 8.00 8.00 7.00 Assistant Land Surveyor 2.00 2.00 2.00 Associate Engineer up 5.00 7.00 7.00 Capital Projects Division Manager 1.00 1.00 1.00 Engineering Assistant III 1.00 .00 Engineering Technician III 0.00 3.00 3.00 Land Surveyor 3.00 1.00 1.00 Senior Engineer 1.00 2.00 3.00 Senior Engineering Assistant 2.00 1.00 1.00 Total 25.00 28.00 28.00 d Duration EmployeesFY 17 YE i Actual Summer Students I 4.00 4.00 3.00 Interns 6.00 3.00 3.00 Total 10.00 7.00 6.00 Significant Budget Modifications The Capital Projects Operating Budget for FY 2018-19 is $0.8 million, a$70K or 9% increase over the $0.7 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living adjustment and a position changed from an Assistant Engineer to a Senior Engineer. The Outside Services decrease is due to work being performed internally by Central San staff and the Other Expenses decrease is due to the inclusion of a non-usage allowance for tuition and professional expense reimbursement in FY 2018-19. The Capital Projects Division leads Central San's efforts in maintaining and upgrading aging infrastructure, as well as implementing projects driven by the need to meet evolving regulatory requirements. The Capital Projects Division will also oversee projects related to other strategic priorities of Central San, including playing a role in maintaining a sustainable water supply, and projects related to resource recovery. The Division is building its capacities to effectively administer a significantly larger Capital Improvements Program in future years. This includes implementing a program management information system, using outside resources to supplement Central San staff, and with Purchasing, working to implement the Uniform Public Construction Cost Accounting Act on September 1, 2018. As noted in the footnote to the Budget Overview table, most of the cost of the staff in this division are charged to the capital projects the group oversees and manage. 91 June 7, 2018 Regular Board Meeting Agenda Packet- Page 218 of 446 Page 100 of 264 Engineering and Technical Services Department—Environmental and Regulatory Compliance Division Environmental and Regulatory Compliance Division OVERVIEW This Division oversees and ensures that Central San activities and operations are in compliance with applicable federal, state, and local environmental laws, regulations, and policies. The Division ensures Central San's permitted businesses and industrial customers comply with all applicable requirements to protect the environment as well as Central San's assets; manages the Household Hazardous Waste Collection Program and Residential Recycled Water Fill Station; receives and interprets laboratory data and applies results to regulatory requirements, ensuring the treatment plant's effluent meets all water quality standards; evaluates treatment plant operations to ensure compliance with all air pollution control standards; evaluates the effectiveness of regulatory compliance programs; develops and implements new programs as mandated by legislation and/or policy; monitors and analyzes legislation and new regulations that impact regulatory compliance; and represents Central San before boards, political bodies, committees, and the general public. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: Accomplishment • Achieved 20th year of continuous compliance with all National Pollutant Discharge Elimination System (NPDES) permit requirements. Completed all NPDES-required analysis, monitoring, and reports to meet the Regional Water Quality Control Board (individual NPDES Permit, Nutrient Goal 2— Watershed Permit, PCB and Mercury Watershed Permit) requirements. Strive to Meet All • Completed all required analysis, monitoring, emissions testing, and reports to Regulatory satisfy Title V Permit requirements. Requirements • Prepared the 2017 greenhouse gas (GHG) inventory and completed third-party inventory verification to meet the California Air Resource Board regulations. • Successfully maintained 2017 anthropogenic greenhouse gas (GHG) emissions below the Cap and Trade inclusion threshold. • Completed all required Pollution Prevention and Pretreatment Reports. • 42,800 visits to the Household Hazardous Waste Collection Facility and Residential Recycled Water Fill Station by residents, small businesses, reuse customers, retail Goal 6— partners, and residential fill station users (through March 2018). Embrace . Managed complex emissions and liquid testing for the award-winning Wet Scrubber Technology, System Pilot Plant for proof of performance and future design parameters. Innovation, and . Completed liquid testing for the wet scrubber system. Environmental Sustainability . Evaluated soil remedial alternatives for contaminated soil at the Surcharge Fill Area. • Implemented use of tablets in the field for Environmental Compliance Inspections. Fiscal Year 2018-19 Key Metrics National Pollutant Discharge Elimination System (NPDES) Zero violations compliance Title V compliance Zero violations Recycled Water Title 22 compliance Zero violations Anthropogenic GHG emissions Less than 25,000 metric tons CO2e Annual Environmental Compliance inspections and permitting 100°/0 completed on time 92 June 7, 2018 Regular Board Meeting Agenda Packet- Page 219 of 446 Page 101 of 264 Engineering and Technical Services Department—Environmental and Regulatory Compliance Division Household Hazardous Waste (HHW) management compliance Zero violations Potable water system monthly testing meets all water quality 100% standards Operating expenditures as percentage of operating budget Greater than 95% Performance evaluations completed on time 100% Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: • r I • 1 Build External Customer Provide high-quality Relationships and Customer Satisfaction Awareness customer service. Goal 1 — Establish opportunities for internal partnerships and Provide Enterprise Resiliency Exceptional Foster Employee cross-divisional Customer Service Engagement and collaborations. and Maintain an Interdepartmental Cultivate employees' Excellent Collaboration understanding of District Employee and Leadership Development, operations and their role in Reputation in the p Community the agency's success. Enterprise Resiliency Maintain a Strong Continue to participate in Reputation in the industry trade organizations Employee and Leadership Community and apply for certifications Development and awards. Meet existing regulations. Product Quality Foster relationships with Stakeholder Understanding regulatory agencies. and Support Strive to Achieve 100% Track proposed and Permit Compliance in pending legislation or Air, Water, Land, and regulatory changes; plan Stakeholder Understanding Goal 2— Other Regulations for possible and Support Strive to Meet implementations. Regulatory Actively manage GHG Requirements emissions in the most cost- effective and responsible Community Sustainability manner. Evaluate existing Comply with All Federal, Department and State, and Local Administrative Procedures Enterprise Resiliency Regulations Related to to ensure compliance with District Administration applicable laws and regulations. Goal 3— Evaluate business Be a Fiscally processes and complete Responsible and Manage Costs optimization studies to Operational Optimization, Effective identify opportunities to Enterprise Resiliency Wastewater Utility reduce costs and align with best practices. 93 June 7, 2018 Regular Board Meeting Agenda Packet- Page 220 of 446 Page 102 of 264 Engineering and Technical Services Department-Environmental and Regulatory Compliance Division Initiative EUM Attribute .. Goal 4- Recruit, Develop, Enhance Relationship positive work Employee and Retain a with Employees and Cultivate a p and Leadership Highly Trained Bargaining Units culture. Development and Safe Workforce Goal 5- Protect District Maintain a Personnel and Assets Improve and enhance the Reliable from Threats and potable water system water Product Quality Infrastructure Emergencies quality testing procedures. Goal 6- Encourage the Review Continue developing and Embrace and Testing of investing in cost-effective Technology, Technology to Optimize innovation, technology, and Operational Optimization Innovation, and and Modernize Business applied research and Environmental Operations development. Sustainability Budget Overview by Expense Category Account FY 2016-17 FY 1 I I18-19 Budget to Percent Budget Description ..•t Actual Budget Projected Budget Projected Variance Budget Variance Variance Sa#anes& $3,412,647 $3,321,204 53,542,344 $3,495,500 $3,594,027 $98,527 3% $51,683 1% Wages Employee $2,672,956 $2,631,201 $2,670,133 $2,598,401 $1,480,320 {$1,118,481} -43% ($1,189,813) 45% Benefits Unfunded SO $o SO S0 $1,140,247 51,140,247 100% 51,140,247 70496 Liabilities _Utilities $32,700 $14,368 $24,300 $13,500 $13,500 $0 096, ($10,800) -44% Repairs& $106,500 568,400 $110,000 $81,541 I $109,Opo $27,459 34% ($1,000) -9% Maintenance L Hauling& $423,000 $481,909 $474,925 $494,383 i $538,425 $44,042 9% $63,500 13% Dis sal Professional&1 $6,000 $o $6,000 $1,0001 $6,000 $5,000 $0 0% Legal Services_i Outside 5859,200 5832,577 5570,500 5480,200 $594,500 $114,300 24% 524,000 4% Services Materials& $286,700 $292,373 $300,200 $299,300 $308,500 $9,200 3% $8,300 3% Supplies Other $133,639 $386,941 $147,302 $123,026 $150,880 $27,854 23% $3,578 2% Expenses Other $310,000 $0 5605,816 $403,586 $482,000 558,414 1496 ($143,816) 24% Expenses- BACWA _ Total 58.243.342 S8,028,974 58,451,520 $7,990,437 $8,397.399 5406.962 5% ($54,121). -1% *Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. 94 June 7, 2018 Regular Board Meeting Agenda Packet- Page 221 of 446 Page 103 of 264 Engineering and Technical Services Department-Environmental and Regulatory Compliance Division Personnel Requirements FY 201Regular Status 6-Actual YE 17 i2018-19 Administrative Assistant 1.00 1.00 1.00 Assistant Engineer 2.00 2.00 2.00 Associate Engineer 1.00 1.00 1.00 Chemist 1/11 4.00 5.00 5.00 Chemist III 1.00 A 1.00 Environmental and Regulatory 1.00 1.00 1.00 Compliance Division Manager _ Environmental Compliance Inspector 1/II 6.00 Environmental Compliance 1.00 1.00 1.00 Superintendent Household Hazardous Waste Supervisor 1.00 1.00 1.00 Household Hazardous Waste Technician 3.00 3.00 3.00 I/II Laboratory Superintendent 1.00 1.00 1.00 Senior Chemist 1.00 1.00 1.00 Senior Engineer 1.00 Senior Environmental Compliance 2.00 2.00 2.00 Inspector Senior Household Hazardous Waste 2.00 Technician 40 - Total 28.00 29.00 29.00 FY 2016-17 . . Actual YE i Laboratory Assistant Summer Student 1900 2.00 2.00 Intern 1.00 1.50 2.00 MW Total 2.00 3.50 4.00 Significant Budget Modifications The Environmental and Regulatory Compliance Operating Budget for FY 2018-19 is $8.4 million, a $50K or 1% decrease over the $8.5 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living adjustment, offset by reductions due to staff turnover and lower costs for newer employees. Other changes include a decrease in Utilities due to lower telephone expenses and lower BACWA-related expenses due to lack of need for additional funding for nutrient studies. Those decreases were offset by increases in Outside Services for increased temporary staff expenses at the Household Hazardous Waste (HHW) facility and outside laboratory service expense increases and increases in Hauling &Disposal for HHW. The Environmental and Regulatory Compliance Division plays the leading role in monitoring evolving regulation and environmental compliance requirements promulgated by State and Federal agencies, and assuring that Central San is positioned to meet these requirements. 95 June 7, 2018 Regular Board Meeting Agenda Packet- Page 222 of 446 Page 104 of 264 Engineering and Technical Services Department—Planning and Development Services Division Planning and Development Services Division OVERVIEW This Division provides planning and applied research for Central San's collection system, treatment plant, and recycled water facilities and programs; oversees asset management, geographic information systems (GIS), and computerized maintenance management systems (CMMS); financial planning for rates, Capacity fees,permits, and sewer service charges; and development services, including right-of- way, property management, development inspection, permit counter operations, and mainline plan review. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: Goal Accomplishment Goal 1 — . Received 95% satisfactory customer rating on permit counter interactions. Provide Exceptional . Held two Sewer Summits for 10 partner agencies. Customer Service Goal 3— • Amended District Code to reference Accessory Dwelling Unit(ADU) language Be a Fiscally Sound from Government Code Section 65852.2 (SB 229). and Effective Water • Amended Capacity Fee schedule to include waiver of capacity fees for ADUs Sector Utility "contained within existing space" and proportionate capacity fees for new conforming ADUs. • Led the Sewer System Management Plan 5-Year Update. • Started implementation of a new Program Management Information System (PMIS) platform called e-Builder®for the Capital Improvement Program. • Completed asset register for Pumping Stations and Treatment Plant assets. • Completed implementation of InfoMaster®sewer renovation risk model InfoWorks®hydrodynamic model and flow calibration. Goal 5— . Commenced studies to optimize treatment plant secondary and solids processes. Maintain a Reliable The goals include reduced future capital improvements and increased operating Infrastructure efficiencies. Evaluated 20 District facilities and completed the District-wide Vulnerability/Security Study. • Completed implementation of CCTV software and USA locating software to support CSO. • Continued to support internal users and provide system administration for GIS, CMMS, &web mapping. • Started Phase 1 of a multi-agency coalition to plan and design a three dry ton per day innovative hydrothermal bioenergy pilot project (which received $1.2 million in grant funding from the Department of Energy), referred to as HYPOWERS Goal 6— Project. Embrace Technology, • Completed a $1 million wet scrubber, scrubber water treatment, and lime Innovation, and reduction pilot to confirm performance and design criteria, which resulted in Environmental $14 million in estimated savings from solids handling capital project. Sustainability • Evaluated interest in a public-private partnership that would develop and implement a Bioenergy Facility to process a portion of Central San's solids and produce renewable energy. • Started implementation of the Easement Initiative to optimize right-of-way 96 June 7, 2018 Regular Board Meeting Agenda Packet- Page 223 of 446 Page 105 of 264 Engineering and Technical Services Department—Planning and Development Services Division Goal Accompl7is-Mm"e documents for easy accessibility. Received the San Francisco Bay Area and statewide California Water Environment Association (CWEA) Engineering and Research — Research Achievement of the Year Awards for the Wet Scrubber Pilot. • Presented Migrating Legacy Applications into a Model-View-Controller Framework at the Adobe Cold Fusion Summit. • Gave InfoMaster®presentation at the AWWA Infrastructure Conference. • Presented on HYPOWERS at the CASA/CWEA Innovation Seminar. • Presented Optimization After Your Master Plan at the CWEA 2018 Annual Conference. Fiscal Year 2018-19 Key Metrics Median customer satisfaction rating on permit —Greater than 95% counter interactions Sewer Service Charge less than average of Bay Area Service affordability maintained Agencies/ Sewer Service Charge plus Ad Valorem tax less than average of Bay Area agencies Gallons of recycled water distributed to external LGreater than 240 million gallons per year customers kWh of solar power produced at Collection System Greater than 220,000 kWh per year(reported as a Operations and Household Hazardous Waste I rolling average) Facility Reviews or pilot tests of new and promising Greater than 3 pilot tests or reviews per year technology Research papers and findings presented I Greater than 3 papers or presentations per year Operating expenditures as a percentage of Greater than 95% operating budget Performance evaluations completed on time 100% Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Initiative EUM Attribute - Provide high-quality customer Customer Satisfaction service. Goal 1 — Build External Provide Customer Invest in business process Exceptional Relationships and changes and technologies to Awareness effectively increase access to Customer Service District information and promote Customer Satisfaction and Maintain an Excellent customer care, convenience, Reputation in the and self-service. Community Establish opportunities for Foster Employee internal partnerships and cross- Enterprise Resiliency Engagement and divisional collaborations. Improve 97 June 7, 2018 Regular Board Meeting Agenda Packet- Page 224 of 446 Page 106 of 264 Engineering and Technical Services Department—Planning and Development Services Division "Iff"I awl . . Interdepartmental Collaboration Cultivate employees' Employee and Leadership understanding of District Development, operations and their role in the Enterprise Resiliency agency's success. Maintain a Strong Continue to participate in Reputation in the industry trade organizations Employee and Leadership Community and apply for certifications and Development awards. Goal 2— Comply with All Re-examine existing Strive to Meet Federal, State, and Department and Administrative Regulatory Local Regulations Procedures to ensure Enterprise Resiliency Requirements Related to District compliance with applicable laws Administration and regulations. Ensure rate structure and fees Customer Satisfaction, are consistent with cost of Financial Viability service principles. Present alternative financial plans to the Board in FY 2018- 19 for necessary rate Conduct Long- adjustments for FY 2019-20 Financial Viability, Range Financial onward, including considering Infrastructure Strategy and Planning the potential issuance of debt to Performance Goal 3— fund the updated CIP in Be a Fiscally conjunction with the overall Responsible and financial plan. Effective Wastewater Utility Develop alternatives for new revenues and funding sources Financial Viability (i.e., interagency agreements, services, and recycled water). Evaluate business processes and complete optimization Operational Optimization, Manage Costs studies to identify opportunities to reduce costs and align with Enterprise Resiliency best practices. Goal 4— Enhance Recruit, Develop, Relationship with Cultivate a positive work Employee and Leadership and Retain a Highly Employees and culture. Development Trained and Safe Bargaining Units Workforce Goal 5— Facilitate Long-Term Infrastructure Strategy and Maintain a Reliable Capital Renewal and Integrate data from the Asset Performance Infrastructure Replacement Management Program into the 98 June 7, 2018 Regular Board Meeting Agenda Packet- Page 225 of 446 Page 107 of 264 Engineering and Technical Services Department—Planning and Development Services Division Initiative EUM Attribute . . analysis of long-term Capital Improvement needs based on the Ten -Year CIP. Implement the Program Operational Optimization, Management Information Infrastructure Strategy and System (PMIS). Performance Protect District Evaluate and implement Personnel and appropriate improvements to Enterprise Resiliency Assets from Threats the Security Program to meet and Emergencies new or evolving threats. Explore partnering Water Resource opportunities. Sustainability, Community Sustainability Augment the Region's Water Continue to support the Supply development of a Water Resource demonstration Satellite Water Sustainability, Community Recycling Facility at Diablo Sustainability Country Club. Goal 6— Reduce Reliance on Explore opportunities for self- Embrace Non-Renewable generation, conservation, and Community Sustainability Technology, Energy efficiency. Innovation, and Environmental Sustainability Encourage the Continue developing and Review and Testing investing in cost-effective of Technology to innovation, technology, and Operational Optimization Optimize and applied research and Modernize Business development. Operations 99 June 7, 2018 Regular Board Meeting Agenda Packet- Page 226 of 446 Page 108 of 264 Engineering and Technical Services Department-Planning and Development Services Division Budget Overview by Expense Category Account FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY i18-19 Budget to Percent Budget Description Budgetrr r r Budget Projected Variance Budget Variance Variance Salaries& $3,685,044 53,764,484 $4,464,830 $4,535,780 54,444,903 ($90,877) -2% (S19,927). 0% Wages Employee $1,770,926 51,801,061 $2,278,748 52,578,183 $761,183 [$1,817,000] -70951 ($1,517;565} -67% Benefits Unfunded $0 $O SO $0 $1,435,363 $1,435,363 100% $1,435,363 1013% Liabilities x Utilities 5120,400 $150,713 $137,300 $135,600 $138,900 $1,300 1% (5400) 0% (Repairs& 559,400 520,504 $59,400 529,200 559,400 ! S30,200 103%, 5o 0% _Maintenance Professional& $115,000 $169,401 $165,000 $160,000 $1$5,000 $5,000 3%1 $0 0% Legal Services Outside 1579,100 $577,625 $569,542 3562,942 5634,542 $71,600 13% $65,000 11% Services Materials& $37,550 $46,333 $47,550 $41,150 $57,850 516,700 4196 $10,300 22% Supplies Other $88,474 $51.575 $94,025` $63,465 $105.012 -541.547 65% $10.987 12% Expenses Total 56.455,894 $6.581.696 57.816.395 S8.106,320 S7,800.153 (S306.167) 4% (S16.242) 0961 "Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. Note: Some staff in this Division are budgeted with the Capital Improvements Program.As a result, 26%of their combined salary and benefit expenses are paid for by the projects identified in the Capital Improvement Budget. The amounts above are net of the capitalized administrative overhead transfer to the Sewer Construction Fund. 100 June 7, 2018 Regular Board Meeting Agenda Packet- Page 227 of 446 Page 109 of 264 Engineering and Technical Services Department-Planning and Development Services Division Personnel Requirements FY 2016-17 YE FY 2017-18 FY 2018-19 Actual Administrative Assistant 1.00 1.00 1.00 Administrative Services Supervisor 1.00 1.00 1.00 Assistant Engineer 09 12.0w Associate Engineer 4.00 4.00 4.00 Construction Inspector 4.00 4.00 4.00 Development Services Supervisor 1.00 2.00 2.00 Director of Engineering and Technical Services Engineering Assistant III 4.00 5.00 5.00 Engineering Assistant 1/11 3.00 2.00 2.00 Engineering Technician 1/11 1.00 1.00 1.00 GIS Analyst 2. GIS/CMMS Administrator 1.00 1.00 1.00 Maintenance Planner 1.00 1.00 1.00 Management Analyst 0.00 1.00 1.00 Planning and Development Services Division Manager Program Manager 1.00 1.00 1.00 Senior Engineer 4.00 4.00 4.00 Senior Right-of-Way Agent 2.00 2.00 2.00 Total 3 36.0W�:400r7 EmployeesLimited Duration FY 17 YE i _t Actual Engineering Assistant Summer Student 7.00 8.00 5.00 Intern 4.00 4.00 3.00 Total 11.00 1 12.00 8.00 Significant Budget Modifications The Planning and Development Services Operating Budget for FY 2018-19 is $7.8 million,which remained flat compared to the $7.8 million budget in FY 2017-18. Salaries & Wages include the agency-wide cost of living adjustment and the addition of a General Manager-transitional position for a Management Analyst in the Asset Management workgroup, offset by more time to be charged to both the Capital Improvement and Recycled Water Programs. While not funded, the division anticipates the use of a second General Manager-transitional position for a Construction Inspector to provide overlap for potential retirements within the unit and ensure optimal transition for succession planning. Outside Services is increasing to address additional fees for California Association of Sanitation Agencies (CASA), and Materials & Supplies is increasing due to additional laboratory supplies. 101 June 7, 2018 Regular Board Meeting Agenda Packet- Page 228 of 446 Page 110 of 264 Engineering and Technical Services Department—Planning and Development Services Division The Planning and Development Services Division's budget allows Central San to meet several key challenges including: • Maintaining customer awareness of Central San's important responsibilities, the costs involved in meeting those responsibilities, and meeting their service level expectations. • Customer concern about rate increases. Both of the above are addressed through the Division's work in maintaining the financial plan and rate setting, and the division works to balance the objectives of setting rates to fund important priorities for Central San,while keeping rate adjustments moderated and no higher than necessary. The Division also includes the staff and program costs for Central San's resource recovery efforts and efforts to maintain a sustainable water supply. 102 June 7, 2018 Regular Board Meeting Agenda Packet- Page 229 of 446 Page 111 of 264 Operations Department LJ V 1 s The Operations Department consists of three Divisions, Central San's Safety Program, and the Recycled Water Program who report to the Deputy General Manager. The primary function of the Operations Department is to collect, treat, and dispose of wastewater in compliance with regulatory requirements and to divert a portion of the wastewater to produce Title 22 recycled water. This includes operations and maintenance of pipelines,pumping stations and treatment facilities; oversight of power generation operations; fleet maintenance; and managing computerized control equipment and systems. The Divisions and Programs that comprise this Department include: • Collection System Operations • Plant Maintenance • Plant Operations • Safety Program • Recycled Water Program June 7, 2018 Regular Board Meeting Agenda Packet- Page 230 of 446 Page 112 of 264 Operations Department—Collection System Operations Division Collection System Operations Division OVERVIEW This Division is responsible for cleaning, maintaining and repairing of over 1,500 miles of collection sewers, trunk sewers and force mains in Central San's vast collection system, as well as maintaining the recycled water distribution system. The Division is also responsible for the maintenance of all Central San vehicles. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: Accomplishment Goal 1 — Responded to 197 customer service phone calls. Provide Exceptional Achieved an average customer service satisfaction rating of 3.97 out of 4.0. Customer Service *Average response to all emergency service calls was 40 minutes. Goal 2— •Sanitary sewer overflows were 2.50 per 100 miles and there were no Strive to Meet All Regulatory capacity related overflows. Requirements •Cleaned 759 miles of sanitary sewers. •Televised 167 miles of sanitary sewers. •Completed over 987 services on Central San vehicles and equipment; on schedule 100% of time. •Completed over 16,156 cleaning schedules and work orders; completed on schedule 99% of the time. Goal 5— •Consolidated CCTV databases and replaced software with a more user Maintain a Reliable friendly, remotely accessible software (IT Pipes). Infrastructure • Implemented Fleet Diagnostic and AVL for District vehicles. e Repaired two rodder assemblies in-house which is more cost effective and efficient. • Implemented a better ticket management software in USA/locating process (Dig-Smart) Fiscal Year 2018-19 Key Metrics Average onsite response time for collection system emergency Less than 20 minutes calls, during working hours Average onsite response time for collection system emergency Less than 40 minutes calls, after hours Average customer service rating for emergency calls At least 3.8 out of 4.0 MEN Sanitary sewer overflows Less than 2.5 spills per 100 miles of pipeline Spills to public wate]&M= Less than 3 per year CPercent of spills less than 500 gallons Greater than 95% Pipeline cleaning schedules completed on time Greater than 95% FPipeline cleaning quality assurance/quality control (QA/QC) On at least 3% of pipelines cleaned on an annual basis Pipeline cleaning QA/QC passing rate Greater than 98% 104 June 7, 2018 Regular Board Meeting Agenda Packet- Page 231 of 446 Page 113 of 264 Operations Department-Collection System Operations Division Uptime for vehicles and equipment 100% Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Initiative EUM Attribute Build External Customer Provide high-quality Relationships and Customer Satisfaction Awareness customer service. Establish opportunities for internal partnerships and Goal 1 — cross-divisional Provide ExceptionalEnterprise Resiliency Foster Employee Engagement and collaborations. Customer Service and Interdepartmental Maintain an Excellent Cultivate employees' Employee and Collaboration understanding of District Leadership Reputation in the g p Community operations and their role in Development, the agency's success. Enterprise Resiliency Maintain a Strong Continue to participate in Employee and Reputation in the industry trade organizations Leadership Community and apply for certifications Development and awards. Complete the collection system scheduled Infrastructure Strategy maintenance on time and and Performance optimize cleaning Strive to Minimize the schedules. Number of Sanitary Sewer Overflows Continue the pipeline Goal 2— condition assessment and Infrastructure Strategy Strive to Meet cleaning quality assurance Regulatory program using the system- and Performance Requirements wide CCTV program. Re-examine existing Comply with All Federal, Department and State, and Local Administrative Procedures Enterprise Resiliency Regulations Related to to ensure compliance with District Administration applicable laws and regulations. Goal 3— Re-engineer business Be a Fiscally processes and complete Operational Responsible and Manage Costs optimization studies to Optimization, Effective Wastewater identify opportunities to Enterprise Resiliency Utility reduce costs and align with best practices. Initiative EUM Attribute 105 June 7, 2018 Regular Board Meeting Agenda Packet- Page 232 of 446 Page 114 of 264 Operations Department—Collection System Operations Division Goal 4— Enhance Relationship Employee and Recruit, Develop, and with Employees and Cultivate a positive work Leadership Retain a Highly Trained Bargaining Units culture. Development and Safe Workforce Goal 5— Manage Assets Optimally Manage current vehicle Infrastructure Strategy Maintain a Reliable Throughout Their fleet to provide maximum and Performance Infrastructure Lifecycle value. Goal 6— Encourage the Review Continue developing and Embrace Technology, and Testing of investing in cost-effective Operational Innovation, and Technology to Optimize innovation, technology, and Optimization Environmental and Modernize Business applied research and Sustainability Operations development. 106 June 7, 2018 Regular Board Meeting Agenda Packet- Page 233 of 446 Page 115 of 264 Operations Department-Collection System Operations Division Budget Overview by Expense Category Account IFY 2016-17 IFY t i i18-19 Budget to Percent Budget Description Budget •. • . Budget Projected Variance Budget Variance Variance Salaries& $6,107,988 $5,733,334 56,164,374 $6,302,900 $6,272,384 ($30,516) 0% $108,010 2% Wages I I 1 Employee $5,433,375 $4,898,698 55:087,527 $4,919,416 $3,031,2741 ($1,888,142) -30% ($2,056,253) 40% Benefits Unfunded $0 $0 50 $0 $1,942,922 $1,942,922 100% $1,942,922 100% Liabilities Utilities $139,400_ $164.312 $142.400 $156,100_._$145.400 ($10,740) -7% $3,000 2% Repairs& $1,631,502 $1,823,744 $1,624.304 $1,416,904 I $1,474,504 ! S57.600 4%1 ($149,800) -9% Maintenance Hauling& $1131,000 $122,098 $131,000 $131,000 i $131,000 $0 0% $0 0% Disposal Professional& 35,000 WAN 57,500. S7,5001 $7,500 $0 0% $o 0% Legal Services, Outside $906,700 $144,183 $110,600 $61,700 $59.680 ($2,020) -3°Io ($50,920) -46% Services Materials& 1 $774,150 $742,705 $749,550 $728,651I $756,951 $28,300 4% $7,401 1% Supplies Other $142,938 $121,704 $138,958 $124,473 $138,445 $13,972 11% ($513) 0% Expenses Total $14,472,053 $13760 274 $14,156,213 1 $13,80.W I 513,960 060 $111,416 1%1 ($196153)1 -1% *Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. Personnel Requirements FY 2016-17 EmployeesRegular Status YE Actualt Ljeffp- Administrative Assistant 1.00 1.00 1.00 Senior Administrative Assistant 1.00 1.00 1.00 Administrative Services Supervisor 0.00 0.00 0.00 Administrative Technician 1.00 2.00 2.00 Collection System Maintenance Scheduler 1 Collection System Operations Division Manager 1.00 1.00 1.00 Construction Equipment Operator 2.00 2.00 2.00 Field Operations Superintendent 1.00 1.00 1.00 Maintenance Crew Leader 17.00 18.00 8.00 Maintenance Crew Member 1/11 18.00 18.00 18.00 Maintenance Supervisor 4.00 4.00 4.00 Senior Engineer 1.00 1.00 1.00 Utility Worker 2.00 2.00 2.00 Vehicle and Equipment Mechanic 3.00 3.00 3.00 Vehicle Maintenance and Equipment Maintenance Supervisor k:AIKLAIKIJW:: Total 54.00 56.00 56.00 d Duration EmployeesIFY 2016-17 t t .A YE Actual Laborer Summer Student Jr F.00 Clerical Summer Student 1.00 1.00 1.00 Total 3.00 4.00 4.00 107 June 7, 2018 Regular Board Meeting Agenda Packet- Page 234 of 446 Page 116 of 264 Operations Department—Collection System Operations Division Significant Budget Modifications The Collection System Operations Operating Budget for FY 2018-19 is $14.0 million, a $0.2 million or 1% decrease over the $14.2 million budget in FY 2017-18. Salaries & Wages include the agency-wide cost of living adjustment, offset by an increase in the vacancy factor. Repairs and Maintenance is decreasing due to the elimination of the cost of bypass pumping by Rain for Rent and transferring the cost of Verizon Network Fleet to the IT Budget. Outside Services is decreasing due to eliminating the temporary agency employees used in FY 2017-18. 108 June 7, 2018 Regular Board Meeting Agenda Packet- Page 235 of 446 Page 117 of 264 Operations Department—Plant Maintenance Division Plant Maintenance Division OVERVIEW This Division is responsible for maintaining all mechanical, electrical, and instrumentation equipment and systems for the treatment plant, laboratory, and 18 pumping stations as well as all buildings and grounds at the Martinez campus. The Division also consists of a Reliability Engineering Workgroup that provides technical support for maintenance planning and manages the Preventative Maintenance Program, and the Pumping Station Workgroup that operates and maintains the 18 pumping stations. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: Accomplishment Goal 2— • Maintained all equipment and systems to achieve the National Association Strive to Meet Regulatory of Clean Water Agencies Peak Performance Platinum Award for the 20th Requirements consecutive year. • Received the following California Water Environment Association Awards: 0 2017 Electrical Technician of the Year—Regional Level 0 2017 Mechanical Technician of the Year— Regional and State Level o Gimmicks and Gadgets—State Level •Continued to enhance the new Cityworks Computerized Maintenance Goal 5— Management System for the treatment plant and pumping stations. Maintain a Reliable •Completed enhancement to the Lubrication Program. Infrastructure •Continued to develop the Reliability Centered Maintenance Program. This effort established a framework for Central San to improve maintenance efficiency and functional reliability of assets. • Expanded use of condition-based and predictive technologies to identify potential problems at the treatment plant and pumping stations. • Implemented the Staff Training and Development Program for the Mechanical Shop. • Designed and installed a new primary tank flight monitoring system. • Installed motor quick disconnects on key treatment plant equipment. Installed shaft grounding rings on certain motors to minimize premature motor bearing failure. • Fabricated a bar screen lifting device to simplify the process of replacing Goal 6— worn out bar screen grinders. Embrace Technology, • Designed and fabricated: Innovation, and o Customized control handles for the Rodder Truck Operators; a device to Environmental Sustainability assist the Rodder Truck Operators when loading 1,400 feet of coiled rod; a piping system, water separator, and waste chute for the grit washers; and bracing and fiberglass platforms for the emergency bypass vaults. • Redesigned and implemented Furnace No. 2's center shaft drive from a hydraulic system to a variable frequency drive. • Installed an Auto Lube System. 109 June 7, 2018 Regular Board Meeting Agenda Packet- Page 236 of 446 Page 118 of 264 Operations Department—Plant Maintenance Division Fiscal Year 2018-19 Key Metrics Safety-prioritized work orders completed on time 100% Regulatory Title V work orders completed on time 100% Planned treatment plant preventative maintenance completed Greater than 95% on time Planned pump station preventative maintenance completed on Greater than 95% time kWh of electricity produced Greater than 18 million kWh per year (reported as a rolling average) Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Initiative EUM Attribute Establish opportunities for internal partnerships Foster Employee and cross-divisional Enterprise Resiliency Engagement and collaborations. Goal 1 — Interdepartmental Cultivate employees' Provide Exceptional CollaborationEmployee and Customer Service and understanding of District Leadership Development, Maintain an Excellent operations and their role Enterprise Resiliency Reputation in the in the agency's success. Community Continue to participate in Maintain a Strong industry trade Employee and Reputation in the organizations and apply Leadership Development Community for certifications and awards. Strive to Achieve 100% Actively manage GHG Permit Compliance in Air, emissions in the most Community Sustainability Water, Land, and Other cost-effective and Regulations responsible manner. Goal 2— Strive to Meet Re-examine existing Regulatory Comply with All Federal, Department and Requirements State, and Local Administrative Regulations Related to Procedures to ensure Enterprise Resiliency District Administration compliance with applicable laws and regulations. 110 June 7, 2018 Regular Board Meeting Agenda Packet- Page 237 of 446 Page 119 of 264 Operations Department-Plant Maintenance Division Initiative EUM Attribute • . Goal 3- Re-engineer business Be a Fiscally processes and complete Responsible and Manage Costs optimization studies to Operational Optimization, Effective Wastewater identify opportunities to Enterprise Resiliency Utility reduce costs and align with best practices. Goal 4- Enhance Relationship Recruit, Develop and with Employees and Cultivate a positive work Employee and Retain a Highly Trained Bargaining Units culture. Leadership Development and Safe Workforce Goal 5- Manage Assets Optimally Continue maintenance on Infrastructure Strategy Maintain a Reliable throughout Their Lifecycle assets using a reliability- and Performance Infrastructure based approach. Goal 6- Encourage the Review Continue developing and Embrace Technology, and Testing of investing in cost-effective Innovation and Technology to Optimize innovation, technology, Operational Optimization Environmental and Modernize Business and applied research and Sustainability Operations development. Budget Overview by Expense Category Account FY 2016-17 FY t i18-19 Budget to Percent Budget Description Budget •r- . - -d Budget Projected Variance Budget Variance (Reallocated Variance Variance wl Plant Operationsy Salaries& 55259,306 $5.088.411 $5.501,480 $5.247,506 $5,727.357 $479,857 9% $225,877 4% Wages Employee S4.355.893 54,134,911 54,304,142 TS4.058,312 S2,455.560 (S1.602.752) -39% {$1.848.582} -43% Benefits Unfunded $0 . $o $0 $0 $1,751.735 $1,751,735 100°/° $1,751,735 106% Liabilities' Chemicals 5430,000 $328,092 5300,000_250,000 _$250.000 i $0 0°I° (550.000} -17% Utilities S518,550 Sfi10,841 $508,1501 5515,750 _3516,550 5_800 0% 58.400 2% Repairs& 52416,300 $1,916,183 $2,408,300 $2,411,800 $2,528,450 $115,650 5% 3120,150 5% Maintenance Hauling& $138,800 $155,247 $158,800 $163,800 $163,800 $o 0% 55,000 3% Disposal _ Outside 5237.650 $164,987 S257.750 5246,250 $236,200 ($10,050) 4% ($21,550) -8% Services Materials& S539.200 $586,753 $559.200 $581.700 5575,200 (56,500) -196 516,060 3% Supplies Other 5140,001 $140,913 5140,836 5144.836 $161,611 $16,775 12% $20,775 15% Expenses _ Total 534.035.700 $13,126,339 : S14,138,658, 513.619,948 S14,366,463 $746,515 6% S227,805 2% Reallocated "Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. 111 June 7, 2018 Regular Board Meeting Agenda Packet- Page 238 of 446 Page 120 of 264 Operations Department-Plant Maintenance Division Personnel Requirements FY Employees17 Regular Status i YE Actual Assistant Engineer 1.00 1.00 1.00 Buildings and Grounds Supervisor 1.00 1.00 1.00 Electrical Shop Supervisor 1.00 1.00 1.00 Electrical Technician 4.00 4.00 4.00 Instrument Shop Supervisor 1.00 1.00 1.00 Instrument Technician 2.00 3.00 3.00 Machinist 2.00 2.00 2.00 Maintenance Crew Leader 1.00 1.00 1.00 Maintenance Planne 3.00 3.00 3.00 Maintenance Technician 1/11, Mechanical 1.00 2.00 2.00 Maintenance Technician III, Mechanical Mechanical Supervisor 1.00 2.00 2.00 Plant Maintenance Division Manager 1.00 1.00 1.00 lant Maintenance Superintendent Pumping Stations Operator 1/II 4.00 4.00 4.00 Pumping Stations Operato 2.00 2.00 2.00 Pumping Stations Supervisor 1.00 1.00 1.00 Senior Engineer 1.00 1.00 1.00 Utility Worker 7.00 7.00 7.00 Total 43.00 46.00 46.00 EmployeesLimited Duration FY 17 i YE Actuali Laborer Summer Student 7.00 10.00 1 11.00 Engineering Assistant Summer Student 1.00 0.00 1.00 Intern MENUM1.0 1. Total 9.00 11.00 13.00 Significant Budget Modifications The Plant Maintenance Operating Budget for FY 2018-19 is $14.4 million, a $0.2 million or 2% increase over the $14.1 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living adjustment and the addition of a General Manager-transitional position for a Maintenance Technician III, Mechanical. The increase in Repairs &Maintenance relates to outside repairs and maintenance due to increased work related to Multiple Hearth Furnace work. The Plant Maintenance Division Budget directly addresses several of the principle issues facing Central San by optimizing the Maintenance Program to ensure that equipment and system reliability meets all safety, service level, and regulatory requirements. The Division strives to continuously improve overall maintenance effectiveness and reliability over the lifecycle of an asset, including active participation in all phases of design, installation, operation, maintenance, and replacement planning. 112 June 7, 2018 Regular Board Meeting Agenda Packet- Page 239 of 446 Page 121 of 264 Operations Department—Plant Operations Division Plant Operations Division OVERVIEW This Division operates and maintains Central San's treatment plant in Martinez. The treatment plant has a permitted capacity of 53.8 million gallons per day (MGD) and treats an average of 44.0 MGD. The treatment plant also produces 2.5 MGD of recycled water. This Division's budget also includes the administrative services for the Plant Operations and Plant Maintenance Divisions. Fiscal Year 2017-18 Accomplishments This Division had several accomplishments related to the following Central San Goals: Accomplishment •The treatment plant received the National Association of Clean Water Agencies Peak Goal 2— Performance Platinum Award for the 20th consecutive year. Strive to Meet Assisted with preparations and testing for the new Environmental Protection Agency Regulatory 129 Sewage Sludge Incinerator Regulations. Requirements .Worked with the Regulatory Workgroup to ensure the annual anthropogenic greenhouse gas emissions remained below 25,000 metric tons of carbon dioxide. • Implemented Cogeneration British Thermal Unit(BTU) control to save energy and Goal 3— simplify operation. Be a Fiscally Sound • Extended the life of the Dynac Historian Server that stores all treatment plant and Effective Water historical data. Sector Utility . Saved $50,000 by purchasing hardware for the Input/Output Replacement Project at a discounted rate. • Improved resiliency against the ultraviolet disinfection bypass events by installing Goal 6— shutdown-delay timers and enhancing the outlet gate logic. Embrace • Piloted sludge blanket detectors in the primary sedimentation basins and secondary Technology, clarifiers. Innovation, and •Transitioned control of the induced draft fan from an obsolete local controller into the Environmental modern furnace programmable logic controller. Sustainability • Enhanced furnace oxygen control by improving automatic rate control of the air ports for Hearth No. 10. Fiscal Year 2018-19 Key Metrics NPDES compliance Zero Violations Title V compliance Zero Violations Recycled Water Title 22 compliance Zero Violations Anthropogenic GHG emissions Less than 25,000 metric tons COze Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% 113 June 7, 2018 Regular Board Meeting Agenda Packet- Page 240 of 446 Page 122 of 264 Operations Department—Plant Operations Division Fiscal Year 2018-19 Strategic Initiatives This Division will support the following Central San Goals and Strategies: Initiative EUM Attribute Establish opportunities for internal partnerships and Foster Employee cross-divisional Enterprise Resiliency Goal 1 — Engagement and collaborations. Provide Exceptional Interdepartmental Cultivate employees' Customer Service and Collaboration understanding of District Employee and Maintain an Excellent operations and their role in Leadership Development, Reputation in the the agency's success. Enterprise Resiliency Community Maintain a Strong Continue to participate in Reputation in the industry trade organizations Employee and Community and apply for certifications Leadership Development and awards. Meet existing regulations. Product Quality Actively manage GHG emissions in the most cost- Community Sustainability Goal 2— Strive to Achieve 100% effective and responsible Strive to Meet Permit Compliance in manner. Regulatory Air, Water, Land, and Re-examine existing Requirements Other Regulations Department and Administrative Procedures Enterprise Resiliency to ensure compliance with applicable laws and regulations. Goal 3— Re-engineer business Be a Fiscally processes and complete Responsible and Manage Costs optimization studies to Operational Optimization, Effective Wastewater identify opportunities to Enterprise Resiliency Utility reduce costs and align with best practices. Goal 4— Enhance Relationship positive work Employee Recruit, Develop, and with Employees and Cultivate a p and Retain a Highly Trained Bargaining Units culture. Leadership Development and Safe Workforce Goal 6— Encourage the Review Continue developing and Embrace Technology, and Testing of investing in cost-effective Innovation, and Technology to Optimize innovation, technology, and Operational Optimization Environmental and Modernize applied research and Sustainability Business Operations development. 114 June 7, 2018 Regular Board Meeting Agenda Packet- Page 241 of 446 Page 123 of 264 Operations Department-Plant Operations Division Budget Overview by Expense Category Account FY 2016-17 FY i r i2018-19 Budget to Percent Budget to Percent Description Budget ..- Projected ■t- Projected Budget Vanance (Reallocated Variance Variance wl Plant Salaries& $5,161,486 $5,186,179 $5,391,494 $5,621,700 $5,317,180 [5304,524] -5% (S74,314Y -1% Wages - - Emp[oyee $4,001,927 $4,154,327 $3,793,932 $3,821,078` $2,031,456 ($1,789,622) -47% (S1.762,476) -46% Benefits _ Unfunded 50 50 So $0 $1.538.428 $1,538,428 100% $1,538,428 100% Liabilities. Chemicals $1,406,000 $1,048,350 $1,098.000_ S1.052.000 S1.125,000 $73,000 �7% $27,000 2% Utilities $3,210,700 $3,416,933 $3,484,600 53.121.800 $3,002.6DO $119,200) 4% ($482,000) -14% Repairs& $50,200 $41,349 $4,2001 511,000 $4,200 ($6,800) -62% 50 0% Maintenance Hauling& $238,000 $230,207 $249,000 $248,000 $283,004 $35,000 14%. $34,000 14% 17ispasal Professional& $4,000 $3,422 $4,000 1 $1,000 $1,000 $0 0% ($3,000) -75% Legal Services Outside 574,000 $21,556 $42,000 53,000 $22,004 519,000 633% ($20,000)��48% Sennces Materials& S152,900 $135,994 $147,900 $137,400 $144,900 $7,500 5°/0 {531000}; -2% Supplies Other I $560,632 $463,868 5671,850 5617,602 $662,200 $44,598 7%. ($9,650) -1% Expenses Total $14,859,845 $14,700,185 $14,886,978 $14,634,580 $14,131,964 ($542,616) -3% ($755,012) -5% Reallocated * Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. Personnel Requirements Regular Status . .yees IFY r16-17 Actualr r YE Administrative Assistant 2.00 2.00 2.00 Administrative Services Supervisor 1.00 1.00 1.00 Associate Control Systems Engineer 0.00 0.00 0.00 Control Systems Engineer 1.00 2.00 2.00 Control Systems Technician 1.00 1.00 1.00 Deputy General Manager 1.00 1.00 1.00 Plant Operations Division Manager 1.00 1.00 1.00 Plant Operations Superintendent 1.00 1.00 1.00 Plant Operations Training Coordinator A.111111111111111111 1.00 1.00 Plant Operator 1/11 2.00 2.00 4.00 lant Operator III 1.00 Senior Engineer 1.00 1.00 1.00 Senior Plant Operator 13.00 14.00 16.00 Shift Supervisor 7.00 7.00 7.00 Total 37.00 39.00 39.00 115 June 7, 2018 Regular Board Meeting Agenda Packet- Page 242 of 446 Page 124 of 264 Operations Department—Plant Operations Division Limited Duration Employees FY 1 IFY 12018-19 YE Actual Summer Engineering Assistant 0.00 0.00 1.00 Total 0.00 0.00 1.00 Significant Budget Modifications The Plant Operations Operating Budget for FY 2018-19 is $14.1 million, a $0.8 million or 5% decrease over the $14.9 million budgeted in FY 2017-18. Salaries &Wages include the agency-wide cost of living adjustment offset by reductions due to staff turnover and lower costs for new employees. A General Manager-transitional position for a Control Systems Engineer continues to be filled and budgeted in FY 2018-19. Utilities are decreasing due to improvements to the Cogeneration System that lowers the need to import from Pacific Gas and Electric. Other reductions are due to the lower cost of pre-purchased natural gas for FY 2018-19 that also lowers the cost of landfill gas, which is priced proportionally to natural gas. The increase in Hauling& Disposal is due to the commission of the new screens at the headworks (screenings are now removed from the flow and are hauled to the landfill). The decrease in Outside Services is due to lower than expected technical services expenses for training. This Plant Operations Budget, flat overall from the current fiscal year to next fiscal year,provides Central San staff the resources necessary to continue to meet or exceed our evolving regulatory requirements and optimized operations to address the public's concerns regarding increased sewer service rates. 116 June 7, 2018 Regular Board Meeting Agenda Packet- Page 243 of 446 Page 125 of 264 Operations Department—Safety Program Safety Program OVERVIEW The Safety Workgroup oversees and administers the Safety Program. The primary objective of the Safety Program is to reduce injuries, accidents, and environmental impact while ensuring compliance. The Safety Workgroup achieves this by providing high quality training; comprehensive workplace evaluation; incident response; hazardous materials management from acquisition to disposal; and managing regulatory information. Fiscal Year 2017-18 Accomplishments This Program had several accomplishments related to the following Central San Goals: Accomplishment Goal 4— . Conducted 120 hours of classroom training over 81 training sessions on Develop and Retain a Highly 35 safety training subjects and completed 322 Safety Tailgates. Trained and Innovative Recipient of the 2017 California Water Environment Association's Workforce Statewide—Safety Plant of the Year Award. Goal 5— •Worked closely with the Capital Projects Division to provide design Maintain a Reliable reviews, submittal reviews, contractor orientations, and construction safety Infrastructure oversight. • Completed 111 Safety Work Orders. • Removed over 221 tons of hazardous waste. Goal 6— • Implemented online access to safety data sheets through Embrace Technology, MSDSonline.com. Innovation, and • Implemented iAuditor application to allow safety inspections to be Environmental Sustainability conducted via cellphone or tablet. • Updated and serialized Safety Directive Manuals and instituted paperless online access. Fiscal Year 2018-19 Key Metrics Employee injury and illness lost time incident rate less than 2016 Bureau of Labor Statistics' California Sewage Treatment Less than 6.8% Facilities Rate Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% 117 June 7, 2018 Regular Board Meeting Agenda Packet- Page 244 of 446 Page 126 of 264 Operations Department—Safety Program Fiscal Year 2018-19 Strategic Initiatives This Program will support the following Central San Goals and Strategies: Initiative EUM Attribute Establish opportunities for internal partnerships Enterprise Resiliency Foster Employee and cross-divisional Engagement and collaborations. Goal 1 — Interdepartmental Cultivate employees' Provide Exceptional CollaborationEmployee and Customer Service and understanding of District Leadership Development, Maintain an Excellent operations and their role Enterprise Resiliency Reputation in the in the agency's success. Community Continue to participate in Maintain a Strong industry trade Employee and Reputation in the organizations and apply Leadership Development Community for certifications and awards. Re-examine existing Goal 2— Comply with All Federal, Department and Strive to Meet State, and Local Administrative Regulatory Regulations Related to Procedures to ensure Enterprise Resiliency Requirements District Administration compliance with applicable laws and regulations. Re-engineer business Goal 3— processes and complete Be a Fiscally optimization studies to Operational Optimization, Responsible and Manage Costs identify opportunities to Enterprise Resiliency Effective Wastewater reduce costs and align Utility with best practices. Enhance Relationship Cultivate a positive work Employee and with Employees and culture. Leadership Development Bargaining Units Goal 4— Achieve consistent Recruit, Develop, and improvement on State of Employee and Retain a Highly Trained California and Bay Area Leadership Development and Safe Workforce Meet or Exceed Industry industry injury rate. Safety Standards Enhance the safety culture through improved Employee and training and Leadership Development communications. Enhance capability to mitigate, prepare for, Enterprise Resiliency respond to, and recover Goal 5— Protect District Personnel from emergencies. Maintain a Reliable and Assets from Threats Evaluate and implement Infrastructure and Emergencies appropriate improvements to the Enterprise Resiliency Security Program to meet new or evolving threats. 118 June 7, 2018 Regular Board Meeting Agenda Packet- Page 245 of 446 Page 127 of 264 Operations Department-Safety Program IEUM Attribute Goal 6- Encourage the Review Continue developing and Embrace Technology, and Testing of investing in cost-effective Operational Optimization Innovation, and Technology to Optimize innovation, technology, Environmental and Modernize Business and applied research and Sustainability Operations development. Budget Overviewby Expense Catego Account FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY i18-19 Budget to Percent Budget BudgetDescription Budget Actual Projected Budget Variance Variance Salaries& $349,884 $364,506 5384,050 $315,600 $353,959 538,959 92% [$10,091] -3% Wages _ __ Employee 5312,759 $337,448 $317,020 $294,917 $141,539 {$153,378}- -52% ($175,481) -55% Benefits _ Unfunded $o $Q $6 so $209,464 $209,464 100%' $209,464 100% Liabilities. Chemicals $0 30 $0 s0 $0 $0 0% s0 0% Utilities so $0 ! s0 $o $0 0% s0 0% Repairs& $71.400 $60,465 $73,500 573.500 $74,700 $1,200 2% $1.200 2% Maintenance Hauling& $10,250 $9,705 $10,250 $10,250 510,250 $0 0% s0 0% Disposal I _ Professional& $2,500 $o $2,500 $2,500 $2,500 $o 0% s0 0% Legal Services Outside $87,000 526,651 $68,000 $65,500 $61,000 {$4,500} -7% ($7,000) -10% Services materials& $34,500 $30,033 $27,500 $28,500 I $28,100 ($400) -1% $600 2% Supplies Qther $45,575 343,122 554.075 $53.100 $56,600 $3,500 7% $2,525 5% E.apenses Totaii $913,468 $871,929 $916,895 $843,2671 $938,112 364,845 11% $21,217 2% *Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years. Personnel Requirements Regular Status IFY t . . . t YE Actual Operations Safety Specialist 2.00 1 2.00 2.00 Safety Officer 1.00 1.00 1.00 Total 3.00 3.00 3.00 Significant Budget Modifications The Safety Program Operating Budget for FY 2018-19 is $0.9 million, which remained flat compared to the $0.9 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living adjustment offset by reductions due to staff turnover and lower costs for a new employee. There are only minor adjustments to other expense categories. 119 June 7, 2018 Regular Board Meeting Agenda Packet- Page 246 of 446 Page 128 of 264 Operations Department—Recycled Water Program Recycled Water Program OVERVIEW The Recycled Water Program is a reflection of Central San's continued efforts to utilize the valuable resources available in treated wastewater and to augment the region's water supply. Central San began to separately track the Recycled Water Program financials in FY 2016-17, so staff continues to work to accurately budget the anticipated expenses and revenues. This Program draws resources from several Divisions to provide support for the production and distribution of recycled water to Zone 1 commercial and municipal customers, construction contractors, and residential customers through the Residential Fill Station. This Program also includes planning and regulatory support for the existing system and planned expansions, including the Satellite Water Recycling Facility (SWRF)program. Fiscal Year 2017-18 Accomplishments This Program had several accomplishments related to the following Central San Goal: Accomplishment • Executed a Memorandum of Understanding with the Contra Costa Water District and Santa Clara Valley Water District to complete a preliminary feasibility evaluation of the Refinery Recycled Water Exchange Project. •Continued supporting development of the Diablo Country Club's 0.4 MGD SWRF Demonstration Project: including completing the CEQA Goal 6— Initial Study, holding two Open House Community Input Meetings, and Embrace Technology, supporting Diablo Country Club's Design-Build procurement process. Innovation, and •Continued operating the Residential Fill Station, which served over 8,969 Environmental Sustainability customers and delivered 1.94 million gallons of recycled water(as of May 21, 2018w). •Connected new businesses to the recycled water distribution system for landscape irrigation, including "The Veranda"development in Concord. •Continued pursuit of grant funding for existing and planned projects, as part of the Western Recycled Water Coalition. Fiscal Year 2018-19 Key Metrics Recycled Water Title 22 compliance Zero Violations Gallons of recycled water distributed to external customers Greater than 240 million gallons per year Operating expenditures as a percentage of operating budget Greater than 95% Performance evaluations completed on time 100% 120 June 7, 2018 Regular Board Meeting Agenda Packet- Page 247 of 446 Page 129 of 264 Operations Department—Recycled Water Program Fiscal Year 2018-19 Strategic Initiatives This Program will support the following Central San Goals and Strategies: Initiative EUM Attribute Goal 1 — Build Customer Provide high-quality Relationships and customer service. Customer Satisfaction Provide Exceptional Awareness Customer Service and Maintain an Excellent Foster Employee Establish opportunities for Reputation in the Engagement and internal partnerships and Enterprise Resiliency Community Interdepartmental cross-divisional Collaboration collaborations. Meet existing regulations Strive to Achieve 100% and plan for future Product Quality Permit Compliance in Air, regulations. Water, Land, and Other Stakeholder Goal 2— Regulations Foster relationships with Understanding and Strive to Meet regulatory agencies. Support Regulatory Requirements Re-examine existing Comply with All Federal, Department and State, and Local Administrative Procedures Enterprise Resiliency Regulations Related to to ensure compliance with District Administration applicable laws and regulations. Develop alternatives for Conduct Long-Range new revenues and funding Financial Planning sources (i.e. interagency Financial Viability Goal 3— agreements, services, and Be a Fiscally recycled water). Responsible and Re-engineer business Effective Wastewater processes and complete Utility optimization studies to Operational Optimization, Manage Costs identify opportunities to Enterprise Resiliency reduce costs and align with best practices. Explore partnering Water Resource opportunities. Sustainability, Community Sustainability Continue to support the development of a Water Resource Augment the Region's demonstration Satellite Sustainability, Community Water Supply Water Recycling Facility at Sustainability Goal 6— pp y Diablo Country Club. Embrace Technology, Innovation, and Continue to provide Customer Service Environmental recycled water to Sustainabilityresidents and businesses; Satisfaction, Water Resource evaluate and process new customer requests. Sustainability Encourage the Review Continue developing and and Testing of investing in cost-effective Technology to Optimize innovation, technology, Operational Optimization and Modernize Business and applied research and Operations development. 121 June 7, 2018 Regular Board Meeting Agenda Packet- Page 248 of 446 Page 130 of 264 Operations Department-Recycled Water Program Budget Overview by Expense Category Treatment Account IFY 2016-17 IFY I I I18-19 Budget to Percent Budget Description Budget Actual Budget Projected Budget Projected Variance Budget Vanarce VaTiance Variance Salaries& S274,733 $193,469 5228,440 5168,400 $225,100 $56,700 34% (53,340)' -1% Wages Employee $200,402 3187.888 $239,5801 $171,800 $213,900 $42,100 25% {$17,680} -8% Benefits Unfunded $0 SO $0 $0 $0 $0 0%1 SO 00A Liabilities Chemicals 584,000 $51,648 $84,000 $77,600 584,000 $6_,400 8% 50 0% _utilities 5175,000 $191.526 5175,000 5175.000 5175,000 $0 0%. 50 096 Repairs& $6,300 31.842 $6,000 53:000 $6,000 $3,000 100% s0 0% Maintenance Hauling& 50 50 SO s0 30 S6 0% 5o 0% Disposal Professional& $0 SO $0 SO $0 $0 0% 50 0% Legal Services Outside $0 30 $500 $500 $500 $0 0% 3Q 0% Services _ Materials&_ 51,003 $4,696 51,000 $1.000 $1,000 $0 0% So 0% Supplies Other $0 $0 $6,800 $6.600 $6,600 $0 0% $0 01% Expenses Total S741438 5631,069 $733,120 S603.900 S712.100 $108,200 1896 (S21,020) 396 Distribution (including Distribution, Residential Fill, SWRF, Refinery ReW Exchange) Account IFY 2016-17 IFY I I2018-19 Budget to Percent Budget to Percent Description Budget Actual Budget Projected Budget Projected Variance Budget Variance Variance Variance Salaries& S488,414 $169,463 $188,650I $249,980 5340,500 590,520 38% $151,850 80% Wages _ Employee $276,746 $70,639 $102,948 $180,465' $211,344 $30,879 17% $108,396 105% Benefits unfunded 50 50 So so $0 Sv 0% so 0% Liabilities' Chemicals 5o SO 5o $0 So 5o 0% 50 0% Utilities s0 $0 $0 $0 50 500% S6 0% Repairs& $23.700 $0 $23,000 $10,000 $23.000 Si3.000 13D%6 $0 0% Maintenance Hauling& So $0 SO SO so $0 0% $0 0% Disposal Professional& $14,000 $36,275 $14,000 $1,500 $14,000 $12,500 833% $0 0% Legal Services Outside 5202,500 528,877 5202,000 5127,500 $214,000 586,500 68% $12,000 6% Services Materials& $4,897 $47 $4,900 $4,550 $10,900 $6,350 140%1 $6,000 122% Supplies Other $50,024 $34,269 $%Q024 $50,060 $26,950 ($23,110) -46% {523,074} 46% Expenses Total 51,060,281 . 5339,569 5585,522 5624,055 5840,694 $216,639 35%. S255,172 44% *Unfunded Liabilities are included in the Employee Benefits line item for Recycled Water. 122 June 7, 2018 Regular Board Meeting Agenda Packet- Page 249 of 446 Page 131 of 264 Operations Department—Recycled Water Program Total Recycled Water AccWt FY 2016-17 FY t i18-19 Budget to Percent Budget Description Budget Actual Budget Projected Budget Projected Variance Budget Variance Variance Variance Total Rec Water $1,801,719 $970,638 51:318,642 $1,227,955 $1,552,794 $324,839 26% $234,152 18% Expenses ,_ i Personnel Requirements Several Divisions support the Recycled Water Program. Personnel for the Recycled Water Program are shown in their respective Divisions and total 2.68 full time equivalents. A portion of their labor costs, as appropriate to their time spent on the Program, are included in the Recycled Water Budget. In addition, the Budget includes funding for three temporary staff to operate the Residential Fill Station and one intern to support recycled water planning. EmployeesRegular Status FY 2016-17 1 YE Actual Program Manager 0.35 0.50 0.50 Engineering and Technical Services Department Staff 0.75 0.70 0.85 Operations Department Staff 95 1.15 1.33 Total 2.05 2.35 2.68 FY 2016-17 1 YE Actual Fill Station Temporary 3.00 8.00 3.00 Intern 0.00 0.00 1.00 Total 3.00 8.00 4.00 Significant Budget Modifications The Recycled Water Program Operating Budget for FY 2018-19 is $1.6 million, a$0.2 million or 18% increase over the $1.3 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living adjustment, plus increased labor costs for Distribution, Residential Fill, and SWRF sub-programs. These increases are a result of additional staff anticipated to be working on recycled water in FY 2018- 19, due to expected continued demand for the Residential Fill Station. In FY 2018-19, the Residential Fill Station Program will be fully staffed and budgeted with three temporary employees, compared to a straight budget amount of$65,000 in FY 2017-18. The Recycled Water Program helps Central San address several of the challenges presented by the environment in which it operates. These challenges include the need for all water sector agencies in the and west to play a role in maintaining a sustainable water supply, with recent drought experiences, and the continuing effects of climate change. The Program also addresses the increased focus on resource recovery in the wastewater industry. 123 June 7, 2018 Regular Board Meeting Agenda Packet- Page 250 of 446 Page 132 of 264 Operations Department-Recycled Water Program Financial Summary for Recycled Water Program Budgetto Budget Percent Recyled Water Expense Summary IFY 2016-17 Actual FY 2017-18 .•_ Budget Treatment Plant O&M $631,069 1 $733,120 1 $603,900 1 $712,100 1 ($21,020) -3% Treatment Plant Capital $275,405 $330,000 $1,630,000 $2,757,000 $2,427,000 735% Distribution O&M $339,569 $585,522 $624,055 $840,694 $255,172 4496 Distribution Capital $326,550 $130,000 $45,000 $100,000 ($30,000) -23% Total Combined Expense $1,572,593 $1,778,642 $2,902,955 $4,409,794 $2,631,152 753% Budgetto Budget Percent Recyled Water Revenue Summary IFY 2016-17 Actual ._• Budget Variance Variance Treatment Plant(Value not charged) $437,565 $463,411 $1,001,947 $1,455,207 $991,795 214% Zone 1 Revenue $386,709 $373,500 $377,000 $420,000 $46,500 12% Residential Fill(Value not charged) $219,751 $83,779 $139,132 $232,185 $148,406 177% Satellite Reimbursement $92,800 $141,900 $32,242 $81,700 ($60,200) -42% City of Concord Reimbursement $520,882 $404,237 $868,183 $1,289,671 $885,434 219% Total Combined Revenue $1,657,707 $1,466,828 $2,418,504 $3,478,763 $2,011,935 580% Regarding the FY 2018-19 budget Revenue figures noted above, the $420,000 Zone 1 Revenue is entirely allocated to O&M (See Table 5 in Financial Summary). The $1,289,671 City of Concord Reimbursement is contained within the $14,800,000 for O&M (See Table 5 in Financial Summary) and $7,150,000 for Capital (see Table 11 in Financial Summary). The $81,700 Satellite Reimbursement is contained within the $333,000 Other Revenues (see Table 5 in Financial Summary). 124 June 7, 2018 Regular Board Meeting Agenda Packet- Page 251 of 446 Page 133 of 264 Self-Insurance Program Self-Insurance Program Central San has self-insured a portion of its liability and property risks since July 1, 1986, when the Board approved the establishment of the Self Insurance Fund(SIF). Central San currently self-insures general and auto liability risks up to $500,000 per occurrence and purchases a $15 million excess liability insurance policy above that retention. At this time, Central San does not purchase insurance coverage for earthquake or flood losses because insurance programs currently available in California are very expensive for the scope and limits of coverage provided. As a result, Central San self-insures these risks. Fund Allocation In 1994, the Government Accounting Standards Board issued statement No. 10 (GASB-10) which established requirements on how public agencies must fund their self-insured risks. To assure compliance with GASB-10, Central San restructured the SIF into three sub-funds. Each of the three sub-funds was established to pay for specific losses and expenses. In FY 2015-16, sub-fund B was retired and funds for its risks were transferred to sub-fund C. Table 1 presents a recent financial history and projection of the SIF and shows the FY 2018-19 SIF budget. The SIF revenue for FY 2018-19 is projected to be $960,250, and expenses are projected to be $924,500, resulting in net SIF reserves of$6,735,776. The budgeted revenues include the allocation of $779,500 from the FY 2018-19 O&M Budget to the SIF. Sub-Fund A: Actuarially-Based Risks Sub-Fund A is used to pay claims and expenses within Central San's self-insured liability retention. Claims in excess of this retention are covered by the excess insurance policy that renews annually on July 1. Under the requirements of GASB-10, risks that can be actuarially studied must be funded based on an actuarial study performed at least every two years. General liability and automobile liability risks are readily studied throughout the insurance and self-insurance industry to project funding levels for future losses. Central San obtained an actuarial review of its self-insured general liability and automobile liability risks in October 2016. The next actuarial report will be performed in August 2018 using loss data through June 30, 2018. The Board established a policy to maintain the Sub-Fund A reserve at three times the amount of Central San's self-insured retention. The current $500,000 retention requires a $1.5 million reserve. This reserve is used to pay claims and expenses throughout the year and is replenished the following fiscal year. Table 2 shows budgeted revenue for FY 2018-19 of$26,712 with expenses of$345,000, for a decrease of$318,288. This amount will be transferred from Sub-Fund C in order to maintain the minimum reserve at$1.5 million. 125 June 7, 2018 Regular Board Meeting Agenda Packet- Page 252 of 446 Page 134 of 264 Self-Insurance Program Sub-Fund B: Non-Actuarially-Based Risks Sub-Fund B has been retired and all reserves for these risks were transferred to Sub-Fund C in FY 2015-16. Sub-Fund C: Non-GASB-10 Risks This Sub-Fund C has historically covered Risk Management program expenses including insurance premiums, self-insured property losses,potential losses from uninsurable risks, and the costs of initiating claims and lawsuits against others. As noted above, this fund now includes reserves for non- GASB-10 risks and catastrophic losses. The Board established a policy to maintain this reserve at $5 million. This reserve is used to pay claims and expenses throughout the year and is replenished the following fiscal year. This fund also receives the annual O&M contribution and then re-allocates funds needed to maintain the required reserve in Sub-Fund A. Table 3 shows budgeted revenue for FY 2018-19 of$933,538, which includes a transfer from the O&M Fund. 126 June 7, 2018 Regular Board Meeting Agenda Packet- Page 253 of 446 Page 135 of 264 Self-Insurance Program Tables and Figures Table 1 - Self Insurance Fund (SIF) Summary Overview I FY 2016-17 FY 2017-18 FY 2017-18 FY • Account Description Actual Budget Projected Budget Revenues: SIF Allocation from O&M Fund $920,000 $585,000 $585,000 $779,500 Insurance Allocation from HHW $21,674 $75,000 $62,500 $65,000 Subrogation Recovery $56,226 $0 $1,440 $0 Interest Income $461792 $67,000 $85,777 $115,750 Total Revenue $1,044,692 $727,000 $734,717 $960,250 Expenditures: Claims Adjusting $0 $0 $0 $0 Insurance Consulting $0 $0 $0 $6,500 Loss Payments $68,258 $265,000 $88,000 $253,000 Losses:Audit adjustment for GASB 10 ($192,921) $0 $0 $0 Legal Services $2,736 $21,500 $2,500 $20,000 Technical Services $267,691 $75,000 $50,000 $75,000 Insurance Premiums $552,029 $575,000 $540,000 t $570,000 Total Expenses $697,793 $936,500 $680,500 $924,500 E W_Revenue Over Expense $346,899 ($209,500) $54,217 $35,750 Projected Reserves *: Beginning of Year $6,298,910 $6,714,380 $6,645,809 $6,700,026 Reserve Policy Transfer $0 $0 $0 $0 Revenue over Expense $346,899 1 ($209,500) $54,217 1 $35,750 End of Year Projected Reserves $6,645,809 $6,504,880 $6,700,026 $6,735,776 Allocated Reserves: Actuarial Reserves-GASB 10(Fund A) $1,500,000 $1,500,000 $1,500,000 $1,500,000 Non-Actuarial Reserves-GASB 10 $5,145,809 $5,004,879 $5,200,026 $5,235,776 (Fun - - Total Allocated Reserves $6,645,809 $6,504,880 $6,700,026 $6,735,776 *Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting. 127 June 7, 2018 Regular Board Meeting Agenda Packet- Page 254 of 446 Page 136 of 264 Self-Insurance Program Table 2 - SIF - Sub-Fund A FY 2016-17 IFY 2017-18 FY F 0 : Account Description Actual Budget Projected Budge Projected Reserves-Beginning of Year $1,500,000 $1,500,000 $1,500,000 $1,500,000 Revenues: O&M So $0 $0 $0 Subrogation Recovery T $0 $0 $0 $0 Interest $10,832 $15,462 $19,785 $26,712 Total Revenue $10,832 $15,462 $19,7951 $26,712 Expenses: Losses $65,701 $250,000 $85,000 $250,000 Losses:Audit adjustment for GASB 10 ($192,921) $0 $0 $0 Legal Services $1,034 $20,004, $2.500 $20,000, Technical $79,843 $75,0001 $50,0001 $75,000 Total Expenses ($46,337) $345.0001 $137.500 $345,000 Revenue Over Expense 1 $57,169 [$329,538] ($117,715) ($318,288) Pro ected Reserves': .................... Transfer(to)/from Sub-Fund C ($57,169) $329,538 $117,715 $318,288 Reserve increase transfer from Fund C $0 $0 $0 $0 Total Reserves Projected End of Yearl siswowl $1,5wowl $1.500.000 $1,500,000 Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting. 128 June 7, 2018 Regular Board Meeting Agenda Packet- Page 255 of 446 Page 137 of 264 Self-Insurance Program Table 3 - SIF - Sub-Fund C FY 2016-17 FY 2017-18 FY 2017-18 FY • Account Description Actual Budget Projected Budget Beginning Reserves $4,798,910 $5,214,379 $5,145,8091 $5,200,026 Revenues: M A r O&M $920,000 $585,000 $585,000 $779,500 Subrogation Recovery $56,226 $0 $1,440 $0 Insurance Recovery from HHW Partners $21,674 $75,000 $62,500 $65,000 Interest $35,960 $51,538 $65,992 $89,038 Total Revenue $1,033,860 $711,538 $714,932 $933,538 Expenses: Losses $2,551 $15,000 $3,000 $3,000 Legal $1,702 $1,500 $0 $0 Technical $187,849 $0 $0 $0 Insurance Premiums $552,028 $575,000 $540,000 $570,000 Insurance Consulting Services $0 $0 $0 $6,500 Claims Adjustment $0 $0 $0 $0 Total Expenses $744,1301 $592,5001 $543,000 $579,500 Revenue Over Expense $289,730 $120,038 $171,932 $354,038 Projected Reserves: Transfer(to)/from Sub-Fund A $571169 ($329,538) ($117,715) ($318,288) Transfer(to)/from Sub-Fund B $0 $0 $0 $0 Reserve Increase to Sub-Fund A $0 $0 $0 $0 Reserve Policy Transfers $0 $0 $0 $0 Total Reserves Projected End of Yearl $5,145,809 1 $5,004,879 1 $5,200,026 1 $5,235,776 * Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting. 129 June 7, 2018 Regular Board Meeting Agenda Packet- Page 256 of 446 Page 138 of 264 Self-Insurance Program Figure 1 - History of Revenue, Expense, and Reserve Balance $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 101 . il . . I 1 $0 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Actual Budget Projected Budget ■ Total Revenue ■Total Expenses ■ Total Reserves Projected End of Year Figure 2 - History of Loss Payment and Insurance Premiums $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 ■ . $0 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Actual Budget Projected Budget ■ Loss Payments ■ Insurance Premiums 130 June 7, 2018 Regular Board Meeting Agenda Packet- Page 257 of 446 Page 139 of 264 Self-Insurance Program Figure 3 - Reserves by Sub-Fund $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Actual Budget Projected Budget Allocated Reserves -GASB 10 (Fund A) ■Allocated Reserves -GASB 10 (Fund C) Figure 4 - History of Reserves $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Actual Budget Projected Budget ■Allocated Reserves -GASB 10 (Fund C) Allocated Reserves -GASB 10 (Fund A) 131 June 7, 2018 Regular Board Meeting Agenda Packet- Page 258 of 446 Page 140 of 264 Self-Insurance Program Page Intentionally Blank 132 June 7, 2018 Regular Board Meeting Agenda Packet- Page 259 of 446 Page 141 of 264 Capital Improvement Program—Summary Capital Improvement Program Overview Central San funds an extensive Capital Improvement Program designed to preserve, maintain, and enhance Central San's assets, meet regulatory requirements, accommodate the community's needs, and protect public health and the environment. Capital improvements are construction or renovation activities that add value to Central San's fixed assets (pipelines,buildings, facilities, and equipment) or significantly extend their useful life. Capital Expenditures Definition Capital expenditures are cash outlays by Central San that result in the acquisition or construction of a capital asset. A capital asset is any asset of significant value, over $5,000, that has a useful life expectancy of one year or more. Examples of capital assets include treatment plant renovations, collection system sewer replacements, equipment replacements, vehicle acquisitions, buildings, and land. Land is always considered a capital asset, regardless of value. All capital assets and improvements acquired or constructed are included in the Capital Improvement Program. Capital Program Process Annually, Central San updates its Ten-Year Capital Improvement Plan (CIP). The CIP identifies and prioritizes capital projects needed to accomplish Central San's Strategic Plan and provides the basis for project scheduling, staffing, and long-range financial planning. The CIP also serves as the framework for rate setting and decisions based on planned expenditures. The CIP undergoes several levels of review by Central San as detailed in the Ten-Year CIP Section. Once a project is determined to be necessary, based on operational or maintenance needs or condition of the existing asset, the project is listed in the Capital Improvement Budget(CIB). In addition, new or rescheduled projects may occur during any given year due to urgent requirements or unforeseen circumstances. These projects are referred to as contingency projects and are included in the CIB as needed. The CIB provides a detailed presentation of the estimated capital expenditures for the first year of the CIP beginning on July I and ending on June 30, referred to as a fiscal year. Since the majority of capital projects take longer than a year to complete, future years are presented and estimated to predict the potential budget appropriation for the current projects. The CIB includes expenditures for the planning, design, and construction of capital projects and is categorized in four programs: Collection System; Treatment Plant; General Improvements; and Recycled Water. All CIB projects are reviewed and prioritized yearly, especially as projects are refined during the predesign phase which include comprehensive condition assessments. The CIB also includes two types of contingency funding of capital projects, which provide for project contingency determined at the time of award of any project and CIB contingency. The CIB contingency can be used in any program and is intended to cover contingency projects and potential budget overruns. By adopting the CIB,the Board authorizes staff to pursue work on the identified projects in all four programs with firm individual project budgets. In addition, any previously approved budget may carry forward to the current fiscal year. Staff reports to the Board the final CIB expenditures after the end of each fiscal year. 133 June 7, 2018 Regular Board Meeting Agenda Packet- Page 260 of 446 Page 142 of 264 Capital Improvement Program-Summary Capital Revenue The Capital Program is funded by the Sewer Construction Fund's fees and charges listed below which are discussed in detail in the Financial Summary. • Capacity Fees • Interest • Pumped Zone Fees • Sewer Service Charges • Property Taxes • Reimbursement from Others While Central San generally follows a pay-as-you-go philosophy, Sewer Service Charge rate increases can be mitigated by utilizing bond funding to spread the payment over time. CIB Project Prioritization The projects included in the FY 2018-19 CIB have been prioritized to ensure the best use of available and approved funds. Each project was evaluated using a prioritization scoring system that includes input from stakeholders within the Operations and Engineering Departments. The prioritization scoring system uses existing Central San prioritization strategies, including guidelines developed by the Water Environment& Reuse Foundation and prioritization procedures from the National Association of Clean Water Agencies member agencies. Each project is assigned a priority ranking of Critical,Very High,High, or Medium based on the project's score. The criteria used to develop the scores take into consideration the "triple bottom line plus," or social, environmental, financial, and technical benefits of the project and their applicability to Central San's Vision, Mission, and Values. New projects that were identified as part of the Comprehensive Wastewater Master Plan were prioritized through discussions and workshops with Central San staff. Criteria fell into three categories: 1) Essential Commitments; 2) Project Benefits; and 3) Operational Reliability, as summarized below: Criteria Category: Essential Commitments d Complies with Regulatory Requirements and Mandates Meets Commitment with Outside Agency or Existing Contract Reduces Potential Health or Safety Hazards Implements Board of Directors' Policy/Priority Increases Capacity to Meet Projected Build-out Category:Criteria Impacts Phasing or Implementation Schedule for Other Projects Optimizes Capital Expenditures Reduces Operations and Maintenance Costs Reduces Social Impacts Increases Sustainable Use of Natural or Existing Resources Reduces Environmental Impacts Supports Timely Adoption of Technology Improvements Category:Criteria Operational Reliability Consistent with Asset Management Program Improves Reliability and System Performance Improves Facility-Wide Resiliency 134 June 7, 2018 Regular Board Meeting Agenda Packet- Page 261 of 446 Page 143 of 264 Capital Improvement Program—Summary FY 2017-18 Accomplishments • Pleasant Hill- Grayson Creek Trunk Sewer Project: This project started construction activities in June 2016 and installed approximately 10,000 feet of 18-inch to 24-inch diameter trunk sewers and abandoned several sewers along Grayson Creek. The new sewers provide a backbone system enabling future replacement of the 60-plus-year-old residential sewers in the Gregory Gardens neighborhoods. Construction occurred within residential neighborhoods along Westover Drive and Pleasant Hill Road. The Notice of Completion for the project was issued on December 12, 2017. i Luk Sewer Installation in Pleasant Hill Using Pilot-Tube Boring • Renovation Projects in the Cities of Lafayette, Martinez, Orinda, and Walnut Creek: Several projects have replaced or rehabilitated approximately 28,000 feet(5.3 miles) of sewers, most of which were old 6-inch vitrified clay pipes. Construction included sewer replacement, new manholes, and other infrastructure improvements in public right-of-way and back yard easements. Trenchless technology was utilized where possible for cost effectiveness and to minimize construction impacts. Central San staff also designed and bid approximately 36,500 feet(6.9 miles) of sewer replacement this fiscal year. ;s a- Sewer Replacement in a Residential Neighborhood 135 June 7, 2018 Regular Board Meeting Agenda Packet- Page 262 of 446 Page 144 of 264 Capital Improvement Program—Summary • Headworks Screening Upgrade Project: This project will remove the screenings and plastics from the influent wastewater. Removal and disposal of screenings will protect downstream facilities, extend equipment life, and reduce maintenance of process water equipment. The project is 70 percent complete. The contractor has installed two of the four new multi-rake bar screens, the washer/compactors and the screening disposal facility. Final completion is expected by December 2018. 12 ,• 2017 Removal of Screen Materials New Screens Installed for the at the Headworks Headworks Screening Upgrades Project • Pump and Blower Building Seismic Project: This project seismically updated the Pump and Blower Building to current structural and building code standards. The building houses the primary and final effluent pumps, and electrical and mechanical systems required to operate the entire treatment plant. The project is substantially complete and will be accepted and closed in FY 2018-19. K. Pump and Blower Building Seismic Upgrade Project Construction 136 June 7, 2018 Regular Board Meeting Agenda Packet- Page 263 of 446 Page 145 of 264 Capital Improvement Program—Summary • Wet Scrubber Pilot on Furnace Emissions: The Wet Scrubber Pilot was conducted in 2017 and validated new scrubber technology by testing scrubber performance. The pilot allowed staff to gain valuable operations experience and confirmed design criteria for air and liquid streams under the Solids Handling Facility Improvements Project. P3 VON Wet Scrubber Pilot Team • Predesign of the Pumping Station Upgrades: The completed predesign has identified recommendations for the final design of the Moraga, Orinda Crossroads, and Flush Kleen Pumping Stations. Planning efforts for the Martinez, Maltby, and Fairview Pumping Stations will continue into next fiscal year. Orinda Crossroads Pumping Station 137 June 7, 2018 Regular Board Meeting Agenda Packet- Page 264 of 446 Page 146 of 264 Capital Improvement Program—Summary • Predesign of the Solids Handling Facility Improvements: The completed predesign has identified solutions to rehabilitate and replace the sludge dewatering, sludge handling, sludge blending, and ash handling systems; furnace air pollution control equipment; and structural upgrades to the building housing this equipment. ORIN '7. - Op am �� • r 3-D Model Rendition of the Solids Handling Facility Improvement Project FY 2018-19 CIB The FY 2018-19 CIB for ongoing and rescheduled projects is $45.3 million. The estimated budget needed to complete these projects in future fiscal years is estimated at $307.3 million. Combined, the total estimated budget to complete the identified projects in the FY 2018-19 CIB is $352.6 million. The 2018 Ten-Year CIP is projected to be $805.7 million as in Table 1: Table 1: FY 2018-19 CIB per Program --cuture FYs Under Total Estimated _,ctive 2018-19 CIB Budget to IFY 2018 rojects .. Complete Active Ten Year CIP p (2) Projects I.. .n ollection System $19,347,000 $109,085,540 $128,432,540 $308,958,000 Treatment Plant $16,865,000 $158,460,500 $175,325,500 $428,207,000 General Improvements $4,750,000 $11,418,800 $16,168,800 $25,432,000 Recycled Water $2,857,000 $20,387,500 $23,244,500 $23,675,000 Contingency $1,500,000 $8,000,00019$9,500,000 $19,500,000 Totals: $45,319,000* $307,352,340* $352,671,340 $805,772,000 *Approval of FY 2018-19 projects may commit approximately$31.2 million in future fiscal years. For additional information on proposed yearly budgets,please reference the 2018 Ten-Year CIP Section. 138 June 7, 2018 Regular Board Meeting Agenda Packet- Page 265 of 446 Page 147 of 264 Capital Improvement Program—Summary FY 2018-19 CIB Major Project Emphasis Although the CIB is comprised of budgets for many individual projects, there are several major projects that together account for most of the total capital budget. In FY 2018-19,the emphasis will be on twelve large projects (those projects over $1 million), which together account for $33.5 million or 74 percent of the total CIB for the year. Each major project is summarized as follows: Solids1. . Estimated total project cost: $82,100,000 FY 2018-19 Budget: $5,715,000 Estimated completion date: FY 2023-24 This project will improve the Solids Handling Facility at the treatment plant by replacing the old centrifuges, improving sludge blending, and most importantly replacing the vintage wet scrubber on the incinerators. Other improvements are being evaluated under this project, such as ash handling improvements. North2. Orinda • • PE A FY 2018-19 Budget: $3,731,000 Estimated total project cost: $4,367,000 Estimated completion date: January 2019 This project will replace or rehabilitate up to approximately 8,600 feet of small-diameter sewers located in both public right-of-way and easements within the northern portion of the City of Orinda, north of Highway 24. 3. Lafayette Sewer Renovation— Phase uz_� FY 2018-19 Budget: $3,397,600 Estimated total project cost: $4,033,600 Estimated completion date: January 2019 This project will replace or rehabilitate up to approximately 8,800 feet of small-diameter sewers located in both public right-of-way and easements within the City of Lafayette. 4. Walnut Creek Sewer Renovation— Phase 12 FY 2018-19 Budget: $3,100,000 Estimated total project cost: $4,550,000 Estimated completion date: December 2018 This project will replace or rehabilitate up to approximately 8,500 feet of small-diameter sewers located in both public right-of-way and easements within the City of Walnut Creek. FY 2018-19 Budget: $3,000,000 Estimated total project cost: $7,300,000 Estimated completion date: FY 2019-2020 This project will rehabilitate or replace gates and other mechanical equipment, and existing concrete structures with leaks or cracks. South6. • FY 2018-19 Budget: $2,758,873 Estimated total project cost: $4,721,000 Estimated completion date: December 2018 This project will replace or rehabilitate up to approximately 8,900 feet of small-diameter sewers located in both public right-of-way and easements within the southern portion of the City of Orinda, south of Highway 24. 139 June 7, 2018 Regular Board Meeting Agenda Packet- Page 266 of 446 Page 148 of 264 Capital Improvement Program—Summary MO. . . - FY 2018-19 Budget: $2,697,000 Estimated total project cost: $27,180,000 Estimated completion date: FY 2022-23 This project will make several structural, electrical, and instrumentation improvements at the Moraga, Flush Kleen, and Orinda Crossroads Pumping Stations identified during a recent condition assessments. Replacement includes generators, piping, diesel engines, transfer switches, electrical equipment and other critical items found to be deficient or nearing the end of their useful life. 8. Collection Svstem Sewer Renovat!10646"h FY 2018-19 Budget: $2,612,527 Estimated total project cost: $56,379,067 Estimated completion date: FY 2021-22 This project is for sewer selection planning and design work for new sewer replacement projects totaling up to 36,500 feet of replacement. . . FY 2018-19 Budget: $2,457,000 Estimated total project cost: $22,360,000 Estimated completion date: FY 2023-24 This project will make several structural, mechanical, electrical, and instrumentation improvements at the recycled water facilities Filter Plant and Clearwell identified during recent condition assessments. Replacement include equipment and other critical items found to be deficient or nearing the end of its useful life. 10. Information Technology(IT) Development 16 FY 2018-19 Budget: $1,750,000 Estimated total project cost: $7,324,794 Estimated completion date: FY 2025-26 This project is the implementation of the IT Master Plan which includes the new Enterprise Resource Planning System (ERP), network infrastructure upgrades, Disaster Recovery/Business Continuity, Cloud based technology improvements, business application suite improvements, increasing mobile presence, Desktop technology refreshment, and Web redesign and enhancement. 11. Energy Recovery and Blower Replacement Estimated total project cost: $60,150,000 FY 2018-19 Budget: $1,200,000 Estimated completion date: FY 2026-27 This project will evaluate the condition of the treatment plant energy recovery and aeration blower systems. The project will evaluate the replacement and recommend improvements to the existing steam system, waste heat recovery, steam turbines, and improve the secondary treatment systems related to aeration energy requirements and activated sludge processes. FY 2018-19 Budget: $1,100,000 Estimated total project cost: $2,530,000 Estimated completion date: FY 2020-21 The POB houses staff for the Plant Operations and Plant Maintenance Divisions, the main Control Room, Control System Servers, Board Room, and the Multi-Purpose Room which also serves as the Emergency Operations Center. POB seismic improvements will be made to meet the Damage Control Performance Level. CIB Modifications The recommended CIB includes several changes compared to the previous budget. A major change has been the addition of a brief statement to each project description concerning operations and maintenance (O&M) impacts resulting from the capital improvement. Historically, all projects evaluate, analyze, and consider O&M impacts during project development. This administrative change is to highlight and coordinate these impacts with the Operating Budget. Insignificant impacts are minor cost savings or 140 June 7, 2018 Regular Board Meeting Agenda Packet- Page 267 of 446 Page 149 of 264 Capital Improvement Program—Summary increases to the current Operating Budget up to $25,000. Significant impacts are costs that increase or decrease the Operating Budget over$25,000. These impacts are usually not fully determined until after the planning phase of a project. Other changes include the rescheduling, consolidation, phasing, modification of scope and renaming of projects as following: Rescheduled Projects • Water System Upgrades was authorized by the Board on December 21, 2017. This project will replace the existing air gap tank and system, replace backflow preventers, add testing stations, and include reliability and safety improvements for the potable water system at the treatment plant. The estimated total budget is $800,000 and this scope was included and bid under the Piping Renovation—Phase 9, DP 7330. • The Recycled Water Clearwell Repairs was authorized by the Board on March 1, 2018 and construction was awarded on April 5, 2018. This project will clean the west cell of the Clearwell, dispose of the solids, install a modular cover, and repair the east cell cover at a total estimated project cost of$1.7 million. The budget was funded by the IT Development Project, Ultraviolet Disinfection Project, and included as a contingency project in the FY 2017-18 CIB. Consolidation or Phasing of Existing Projects: • The Piping Renovation—Phase 9, DP 7330, scope and budget was combined with the Treatment Plant Urgent Repairs, DP 7314, and the Water System Upgrades. • The South Orinda Sewer Renovation—Phase 6, DP 8433, scope and budget was combined with the Collection System Urgent Repairs, DP 8434, and the Pipe Burst Blanket Contract 2017-2020, DP 8440. • The Pumping Station Upgrades in the Collection System Program has been split into two project phases. Phase 1 will include renovation of the Moraga, Orinda Crossroads, and Flush Kleen Pumping Stations. Phase 2 will include renovation of the Martinez, Fairview, and Maltby Pumping Stations. Modification of Scope: • The Mechanical and Concrete Renovations, DP 7351, included up to $800,000 of expedited construction efforts to replace the primary sedimentation tank rails, and new chain and flights. Renaming of Projects: • Renamed the Aeration and Energy Upgrades Project, DP 7349, to "Energy Recovery and Blower Replacement" in the Treatment Plant Program. CEQA Compliance The CIB is exempt from the California Environmental Quality Act (CEQA) because it is a planning study (Central San CEQA Guidelines Section 15262). Some projects included in this CIB are designated as exempt under CEQA. If appropriate, a Notice of Exemption may be filed for such projects following a future action of the Board, such as an award of a construction contract. Other projects in the CIB are designated as needing a "Negative Declaration" or "Environmental Impact Report" to comply with CEQA. Non-exempt CEQA projects will be considered for Board approval on a case-by-case basis after preparation and certification of the appropriate CEQA documentation. 141 June 7, 2018 Regular Board Meeting Agenda Packet- Page 268 of 446 Page 150 of 264 Capital Improvement Program—Summary The table below presents the CEQA compliance status of projects for which staff is requesting an authorization of Sewer Construction Funds. The types of CEQA documentation anticipated being required for each project are listed below: • Exemption: Staff will recommend an Exemption Finding, if still appropriate, when each project receives approval consideration at a future Board meeting. • Negative Declaration: Staff will prepare a Negative Declaration for the project. Board consideration of approval of the project would follow its approval of the Negative Declaration. • Environmental Impact Report (EIR): Staff will direct preparation of an EIR. Board consideration of approval of the project would follow certification of the EIR. • CEQA Documents Completed: For these projects, CEQA compliance has already been achieved through documents previously prepared and approved. CEQA Compliance Summary for FY 2018-19 Program/Projecte • Document Required COLLECTION SYSTEM PROGRAM 5991 Pleasant Hill Sewer Renovation—Phase 2 X 6602 South Jackson Contractual Assessment District X CAD 6603 North Jackson Contractual Assessment District X CAD 8249 CSO Dump Pad Modification X 8419 Collection System Planning X 8433 South Orinda Sewer Renovation—Phase 6 X 8435 Walnut Creek Sewer Renovation— Phase 12 X 8436 Pump Station Upgrades Phase 1 X 8441 Cured-in-Place Pipe (CIPP) Blanket Contract X 8442 Pumping Station Equipment and Piping X Replacement—Phase 2 8443 Large Diameter Pipeline Inspection Program X 8444 Force Main Inspection Program X 8445 North Orinda Sewer Renovation—Phase 7 X 8446 Lafayette Sewer Renovation - Phase 12 X 8447 Pumping Station Security Improvements X 8448 Manhole Modification Project X 8449 Collection System Modeling Support X 8450 Development Sewerage Support X 8451 Collection System Sewer Renovation X Planning is exempt; more information is needed on future TBD Pumping Stations Upgrades— Phase 2 X aspects of this project to determine the appropriate CEQA documentation. 142 June 7, 2018 Regular Board Meeting Agenda Packet- Page 269 of 446 Page 151 of 264 Capital Improvement Program-Summary Program/Project -ma wmmm CEMA Document Required TREATMENT PLANT PROGRAM 7291 Pump and Blower Building Seismic Upgrade X 7292 Switchgear Refurbishment—Phase 2 X 7304 Programmable Logic Controller(PLC)Systems X Upgrades 7315 Applied Research and Innovations X 7317 Plant Control System Network Upgrades X 7320 Plant Energy Optimization (Cogen) X 7 17W Fire Protection System—Phase 2 X 7326 Equipment Replacement X 7327 Headworks Screenings UpgradejEEMENEENE& X 7328 Influent Pump Electrical Improvements X 7329 Furnace Burner Upgrades X 7330 Piping Renovation—Phase 9 X I 7339 Plant Control System 1/0 Replacement X Contra Costa County Flood Control and Water Conservation 7341 Walnut Creek/Grayson Creek Levee Rehab District will be the Lead Agency and will determine the appropriate CEQA documentation. 7348 Solids Handling Facility Improvements X 7349 Energy Recovery and Blower Replacement X 7351 Mechanical and Concrete Renovations X 7352 UV Disinfection Upgrades X 7353 Outfall Improvements—Phase 7 X 7354 Treatment Plant Security Improvements X 7355 Odor Control Upgrades—Phase 1 X 7357 Plant-Wide Instrumentation Upgrades X Planning is exempt; more information is needed on future ow aspects of this project to 7358 Innovative Renewable Energy Project X determine the appropriate CEQA documentation. Will also likely require NEPA compliance as directed by DOE. 7359 Solids Conditioning Building Roof Replacement X Existing Plant Facilities As-Is Drawings X 7362 Plant Operations Building (POB) Seismic Upgrades X Treatment Plant Planning X 7364 Treatment Plant Safety Enhancement—Phase 5 X 143 June 7, 2018 Regular Board Meeting Agenda Packet- Page 270 of 446 Page 152 of 264 Capital Improvement Program—Summary GENERAL IMPROVEMENTS PROGRAM 8207 General Security and Access X 8227 Geographic Data Integration (GDI)Treatment Plant X 8230 Capital Legal Services X 8236 District Easement Acquisition X 8238 Asset Management Program Development X 8240 Information Technology(IT) Development X erver Room Relocation A X 8247 Property and Building Improvements X 8248 Cyber Security X 8516 Equipment Acquisition X 8517 Vehicle Replacement Program X RECYCLED WATER PROGRAM 7306 Zone 1 Recycled Water dl X 7346 Recycled Water Distribution System Surge Analysis X 7361 Filter Plant and Clearwell Improvements X 7365 Recycled Water Clearwell Repairs X TBD Recycle Water Distribution System Renovations I X Program 144 June 7, 2018 Regular Board Meeting Agenda Packet- Page 271 of 446 Page 153 of 264 Capital Improvement Program—CIB Collection System Program CIB — Collection System Program The following are the major points of emphasis for the FY 2018-19 Collection System Program: • Renovate sewers as they reach the end of their useful lives to avoid structural failure, sanitary sewer overflows, and control maintenance costs; • Improve the reliability and operations of the pumping stations; and • Comply with the Riverwatch settlement agreement. The process for project identification,prioritization, and scheduling takes into consideration the following seven major components: • Reduce impacts to customers/residents and the communities; • Results from Central San's InfoMaster® model, which is an advanced Geographic Information System integrated risk-based analytical asset management and capital planning tool; • Results from Central San's TV Inspection Program that identify lines in need of rehabilitation or replacement; • Collection System Operations (CSO)maintenance records including overflows and stoppages; • The Pumping Station Inventory Update,which identified necessary reliability improvements; • Collection System Master Plan, which identified capacity limitations in the collection system; and • Coordination with capital improvement programs for paving and pipeline projects of other agencies/utilities. This process allows staff to establish priorities and schedules for the individual elements of the system that are incorporated into the capital budget and plan. Assessment tools, such as InfoMaster® and Closed-Circuit TV inspection, are utilized to confirm the need for projects. After priorities and schedules are set,projects proceed to design and construction. At each step of the process, the level of accuracy in project scope, schedule, and cost improves. The Collection System Program is comprised of the following projects, and planned expenditures. ' Example of Project Driver(s) Aging Capacity Each project is described on the following pages. Each project Infrastructure summary includes project name, description, prioritization,purpose, E operating department impact and funding source, location,budgetary information and drivers (i.e., what is the main impetus for a project). Regulatory Sustainabilit The main driver(s) for each project is (are) identified by highlighting INN IN in orange background color and bold text. Driver(s)that is (are)not as significant or not relevant is (are) displayed in gray. 145 June 7, 2018 Regular Board Meeting Agenda Packet- Page 272 of 446 Page 154 of 264 Capital Improvement Program-CIB Collection System Program All projects in this program are summarized, including planned expenditures, in the following Table 2: CIB Table 2 - FY 2018-19 Collection System Program Budget/Project Summary Project Project Budget-to- FY 2018-19 FY 2019-20 Future FYs Total Project Number Date Cost 5991 Pleasant Hill Sewer Renovation- Phase 2 $460,000 $0 $0 $0 $460,000 6602 South Jackson Contractual Assessment District(CAD) $411,290 $0 $0 $0 $411,290 6603 North Jackson Contractual Assessment District CAD $400,000 $0 $0 $0 $400,000 8249 CSO Dump Pad Modifications $60,000 $o $o $o $60,000 8419 Collection System Planning $870,000 $100,000 $206,000 $412,000 $1,588,000 8433 S.Orinda Sewer Renovation-Phase 6 $1,962,127 $2,758,873 $0 $0 $4,721,000 8435 Walnut Creek Sewer Renovation- Phase 12 $1,450,000 $3,100,000 $0 $0 $4,550,000 8436 Pump Station Upgrades-Phase 1 $1,300,000 $2,697,000 $5,315,000 $17,868,000 $27,180,000 8441 CIPP Contract 2017-2020 $300,000 $100,000 $103,000 $0 $503,000 8442 Pump Station Equipment&Piping Replacement-Phase 2 $36,000 $25,000 $103,000 $436,000 $600,000 8443 Large Diameter Pipeline Inspection Program $200,000 $50,000 $515,000 $1,030,000 $1,795,000 8444 Force Main Inspection Program $75,000 $50,000 $0 $0 $125,000 8445 North Orinda Sewer Renovation- Phase 7 $636,000 $3,731,000 $0 $0 $4,367,000 8446 Lafayette Sewer Renovation-Phase 12 $636,000 $3,397,600 $0 $0 $4,033,600 8447 Pump Station Security Improvements $131,000 $25,000 $51,500 $360,500 $568,000 8448 Manhole Modifications $400,000 $300,000 $309,000 $1,236,000 $2,245,000 8449 Collection System Modeling Support $100,000 $100,000 $103,000 $206,000 $509,000 8450 Development Sewerage Support $400,000 $250,000 $309,000 $1,236,000 $2,195,000 _ 8451 Collection System Sewer Renovation Phase 1 $50,000 $2,612,527 $18,181,540 $35,535,000 $56,379,067 TBD Pump Stations Upgrades-Phase 2 $0 $50,000 $907,000 $24,663,000 $25,620,000 Total Program $9,877,417 $19,347,000 $26,103,040 $82,982,500 $138,309,957 146 June 7, 2018 Regular Board Meeting Agenda Packet- Page 273 of 446 Page 155 of 264 Capital Improvement Program—CIB Collection System Program Pleasant Hill Sewer Renovation — Phase 2 Project Nameq?'�Ieasant Hill Sewer Renovation— Phase-& 7- Project No. Program: Collection System Phase: Design Priority Rank: Very High Ranking Score: 60 Purpose: - Drivers IIIIII To replace and renovate small diameter sewers within the City of Aging Capacity Pleasant Hill. Infrastructure Drivers: Regulatory Sustainability Central San's 1,500+mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of - ---- —— =� infiltration, and/or threat of structural collapse. More than 300 miles of the small diameter sewers in the -Opt collection system were constructed prior to 1956. The - methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 {} ' percent of the dry weather SSOs. Central San implemented a sewer renovation program in 1991 to replace small diameter sewers to control future maintenance requirements and costs, to minimize the number of overflows, to limit the quantity of rainfall entering the collection system, and to improve the level of service provided to customers. Description: The Pleasant Hill Sewer Renovation—Phase 2 Project will replace or rehabilitate small diameter sewers located in both public right-of-way and easements within the City of Pleasant Hill.Design and construction for this project will be included and coordinated with the Collection System Sewer Renovation—Phase 1 Project. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): City of Pleasant Hill 1W Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs al Planning: $183,000 $0 $0 $0 $183,000 Desigr . x277,000 I $0 $0 $277,000 Construction: $0 $0 $0 $0 $0 FY Total: $460,000 $0 $0 147 June 7, 2018 Regular Board Meeting Agenda Packet- Page 274 of 446 Page 156 of 264 Capital Improvement Program—CIB Collection System Program South Jackson Contractual Assessment District Project Name South Jackson CAD Project No. . .0 Program: Collection System Phase: Construction Priority Rank Board Approved Ranking Score: N/A Purpose: Project Drivers To provide a financing mechanism for the extension of public Aging sewers into areas that are currently served by septic tanks, referred Infrastructure Capacity to as Contractual Assessment Districts (CADS). Drivers: Regulatory Sustainability In certain instances, the cost to extend public sewers into an area serviced by septic tanks can be an extreme financial burden for one owner or even a small group of owners. Central San developed the CAD Program to address this financial burden. The CAD process provides = ' a means to finance the cost of sewer improvements over time at a fixed interest rate. The CAD assessments are placed on the customers'property tax bills each year until the entire amount is reimbursed to Central San. Each CAD is presented to the Board of Directors for approval. Description: LEGEND. - CAD The South Jackson Way CAD in Alamo will install --- BOUNDARY SEWEp NC s approximately 1,200 feet of 8-inch sewer and nwnn: ,EWER ED 4 infrastructure to serve 22 properties. This is a cost neutral SEWER project offset and paid for by the participating property owners. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues and repaid by the CAD participants. Location(s): Unincorporated Alamo 1W IPhase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Ir Planning: $0 $01 $0 $0 $0 Design: $0 $0 $0 $0 fiso Construction: $411,290 $0 $0 $0 $411,290 11111111111111111IFY Total: $411,290 $0 $0 $0 $411,290 148 June 7, 2018 Regular Board Meeting Agenda Packet- Page 275 of 446 Page 157 of 264 Capital Improvement Program—CIB Collection System Program North Jackson Contractual Assessment District Project No. . .0 Program: Collection System Phase: Construction Priority Rank I Board Approved Ranking Score: N/A Purpose: • To provide a financing mechanism for the extension of public Aging W Capacity sewers into areas that are currently served by septic tanks, referred Infrastructure to as Contractual Assessment Districts (CADS). Drivers: Regulatory Sustainability In certain instances, the cost to extend public sewers into an area serviced by septic tanks can be an extreme financial burden for one owner or even a small group of owners. Central San developed the CAD Program to address this } , financial burden. The CAD process provides a means to finance the cost of sewer improvements over time at a fixed _ interest rate. The CAD assessments are placed on the customers'property tax bills each year until the entire f amount is reimbursed to Central San. Each CAD is presented to the Board of Directors for approval. 1i061D: y* �! CAD Description: - BOUNDARY f7 SEWER EXISTING f� r The North Jackson Way CAD in Alamo will install .,..,..,, PROPOSED approximately 1,150 feet of 8-inch sewer and infrastructure SEWER to serve up to 14 properties. This is a cost neutral project offset and paid for by the participating property owners. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues and repaid by the CAD participants. Locatiorl Unincorporated Alamo Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 $0 Construction: $400,000 $0 $0 $0 $400,000 FY Total: $400,000 $0 $0 $0 $400,000 149 June 7, 2018 Regular Board Meeting Agenda Packet- Page 276 of 446 Page 158 of 264 Capital Improvement Program—CIB Collection System Program CSO Dump Pad Modifications • - . ,1 1��111 1111 . .111 , . 11 1 Program: Collection System Program Phase: Design Priority Rank: Very High Ranking Score: 60 Purpose: • - • This project will reconfigure the CSO dump pad to improve safety Aging Capacity and efficiency. Infrastructure Drivers: Regulatory Sustainability The current CSO dump pad slopes towards the front of the truck. Water flows under the trucks as they are unloaded to the trench drain which the crews then have to walk through to get to the truck. The truck needs to be unloaded slowly to prevent it from overflowing the drain. Description: : . The following are major elements included in the project: • Demolition of the existing concrete dump pad • Regrade the site • Installation of new concrete Operating Department Impact and Funding Source: This project will not have an impact on operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Collection System Operations Facility in Walnut Creek • : �Wr �Nlr �Wr 'IM Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 �_ $0 $0 Design: $5,000 $0 $0 _ M Construction: $55,000 $0 $0 $0 $55,000 FY Total: ,000 $0 $0 1 $0 1 1 $60,000 150 June 7, 2018 Regular Board Meeting Agenda Packet- Page 277 of 446 Page 159 of 264 Capital Improvement Program—CIB Collection System Program Collection System Planning IL N Project Name Collection System Planning Project No. 8419 Program: Collection System Phase: Planning Priority Rank: Critical Ranking Score: 70 Purpose: Prp ect • To complete technical evaluations to address regulatory drivers, Aging EM Capacity assess collection system replacement needs, evaluate sewer Infrastructure capacities, and investigate optimization opportunities. Drivers: Regulatory Sustainability There are several important collection system and pumping CA station planning efforts. An InfoMaster® sewer replacement risk ®� t model is maintained by staff and used to identify and prioritize the gravity sewers in most need of renovation,update the long- term strategy for sewer replacement, and confirm long-term capital improvement plan project costs and timing. This project also includes developing the InfoMaster® _ framework needed to incorporate force main and large diameter sewer inspection results into a risk-based, long-term renovation and inspection strategy. As collection system and pumping station optimizations and innovative technologies are identified, - - staff will continue to evaluate and determine if a pilot project 0 - would be beneficial. Description: The following are major elements included in the project: • Perform capacity evaluations for proposed developments and special discharge requests • Update InfoMaster® sewer replacement risk model and long-term sewer replacement strategy • Update InfoMaster®to incorporate main and large diameter inspection results to develop long-term renovation and inspection strategies • Evaluate new technologies and pilots applicable to collection system/pumping station operations Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Locatioll Collection System and Pumping Stations Project Budget I Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $870,000 $100,000 $206,000 $412,000 $1,588,000 Design: $0 $0 $0 $0 $0 Construction: $0 $0 $0 $0 $0 FY Total: $870,000 $100,000 $206,000 $412,000 $1,588,000 151 June 7, 2018 Regular Board Meeting Agenda Packet- Page 278 of 446 Page 160 of 264 Capital Improvement Program—CIB Collection System Program South Orinda Sewer Renovation — Phase 6 P.AS Program: Collection SystemDesign/Construction Priority Rank: Critical Ranking Score: 65 Purpose: To replace and renovate small diameter sewers within the southern portion of the City of Orinda. AginCapacity Infrastructure Drivers: Central San's 1,500+mile collection system has pipe segments that Regulatory Sustainability range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/or threat of structural collapse. ;, More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods — s and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry weather SSOs. Central San implemented a sewer renovation program in 1991 to replace small diameter sewers to control future maintenance requirements and costs, to minimize the number of overflows, to limit the quantity of rainfall entering the collection system, and to improve the level of service provided to customers. Description: The South Orinda Sewer Renovation—Phase 6 Project will replace or rehabilitate up to approximately 8,900 feet of small diameter sewers located in both public right-of-way and easements within the southern portion of the City of Orinda, south of Highway 24. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): City of Orinda Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs r=Totall Planning: $150,000 $0 $0 $0 $150,000 esign: $400,000 $0 $0 $0 $400,000 Construction: $1,412,127 $2,758,873 $0 $0 $4,171,000 I: $1,962,127 $2,758,873 $0 $0 $4,721,000 152 June 7, 2018 Regular Board Meeting Agenda Packet- Page 279 of 446 Page 161 of 264 Capital Improvement Program—CIB Collection System Program Walnut Creek Sewer Renovation — Phase 12 Project No. IP Program: Collection System Phase Construction Priority Rank: I Critical Ranking Score: 65 Purpose: To replace and renovate small diameter sewers within the City of Aging Capacity Walnut Creek. Infrastructure Drivers: Regulatory Sustainability Central San's 1,500+mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/or threat of structural collapse. J More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over ' 90 percent of the dry weather SSOs. Central San 5 implemented a sewer renovation program in 1991 to replace small diameter sewers to control future ' maintenance requirements and costs, to minimize the number of overflows, to limit the quantity of rainfall entering the collection system, and to improve the level of service provided to customers. Description: The Walnut Creek Sewer Renovation - Phase 12 Project will replace or rehabilitate up to approximately 8,500 feet of small diameter sewers located in both public right-of-way and easements. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): City of Walnut Creek and Unincorporated Contra Costa County Project Budget,! Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs otal JCon lanning: $150,000 $0 $0 $0 $150,000 Design: $400,000 $0 $0 $0 $400,000 truction: $900,000 $3,100,000 $0 $0 $4,000,000 Y Total: $1,450,000 $3,100,000 $0 $0 $4,550,000 153 June 7, 2018 Regular Board Meeting Agenda Packet- Page 280 of 446 Page 162 of 264 Capital Improvement Program—CIB Collection System Program Pumping Station Upgrades — Phase 1 Pumping . Program: Collection System Phase: Design Priority Rank: Critical Ranking Score: 80 Purpose: _ To address aging infrastructure and reliability needs at the Moraga, Flush Kleen, and Orinda Crossroads Pumping Stations. This project Infrasgructure Capacity also includes the replacement of the metering in the North Main Metering Vault. Regulatory Sustainability Drivers: As part of the Comprehensive Wastewater Master Plan (CWMP), a comprehensive condition assessment of the rf _ pumping stations has identified several structural, mechanical, _ electrical, and instrumentation improvements. An Arc Flash Study has also identified several improvements required at these pumping stations. 71 Description: The following are major elements included in the project: • Add grinder(s) at the Moraga Pumping Station "-- - • Construct surge tank canopy at Orinda Crossroads Pumping Station • Replace wet weather diesel engines at Moraga and Orinda Crossroads Pumping Stations • Replace backup generators and automatic transfer switch improvements • Recondition or replace pumps, valves, and gates • Repair/recoat piping and concrete • Major electrical/controls replacement, including Arc Flash Study recommendations • Replace worn control panels and seismically brace control panels and electrical cabinets • Improve safety devices such as replacement of gas detection systems and eye wash stations • Replace the flowmeter inside the Concord North Main Metering Vault Operating Department Impact and Funding Source: Impacts on the operating budgets has yet to be determined. Project expenditures are funded from Capital Revenues. Location(s): Moraga, Flush Kleen, and Orinda Crossroads Pumping Stations, and Concord Main Metering Vault NOW:TM Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $450,000 $0 $0 $0 $450,000 Design: $850,000 $2,400,000 $0 $3,250,000 Construction: $0 $297,000 $5,315,000 $17,868,000 $23,480,000 FY Total: $1,300,000 $2,697,000 $5,315,000 $17,868,000 $27,180,000 154 June 7, 2018 Regular Board Meeting Agenda Packet- Page 281 of 446 Page 163 of 264 Capital Improvement Program—CIB Collection System Program Cured-In-Place Pipe (CIPP) Contract 2017-2020 Program: Collection System Phase: Construction Priority Rank: I Critical Ranking Score: 75 Purpose: I Drivers Use cured-in-place pipe (CIPP)technology to repair any urgent Aging Capacity pipelines which require immediate action. Infrastructure Drivers: Regulatory Sustainability Urgent pipeline projects which require immediate repairs may arise anytime during a fiscal year. Some of these repairs cannot be completed by Central San's CSO crews and there is typically not enough time to wait for incorporation into a sewer renovation project. Description: This project will include bidding and executing a blanket contract that will allow Central San to use a contractor to perform urgent CIPP work. F CIPP repair work may be triggered by one of the following situations: • Structural failure of a pipe , • Imminent threat of pipe break or collapse • Potential for a SSO Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Locatioll Collection System Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $100,000 $0 $0 $0 $100,000 Construction: $200,000 $100,000 $103,000 $0 $403,000 FY Total: $300,000 $100,000 $103,000 $0 $503,000 155 June 7, 2018 Regular Board Meeting Agenda Packet- Page 282 of 446 Page 164 of 264 Capital Improvement Program—CIB Collection System Program Pumpin Station PSE ui ment and Pi ing Replacement - Phase 2 EquipmentProject Name PS . . 8442 Program: Collection System Phase: Construction Priority Rank: I Critical Ranking Score: 65 Purpose: To replace or recondition failed and obsolete pumps, piping, valves, Aging and other pumping station equipment; and to provide proper Infrastructure Capacity emergency response equipment and critical spare parts at pumping stations. Regulatory Sustainability Drivers: This project has been an ongoing replacement of aging equipment and piping in poor condition at the pumping stations. Additionally, emergency response equipment and critical spare parts are identified to improve resiliency and reliable operations during emergency conditions, power failures, and severe wet weather conditions. Selection of equipment is completed by Plant Operations, Plant Maintenance, and Engineering staff in coordination with the ongoing Asset Management Program. Description: e fc The following are major elements included in the project: • Install control and isolation valves for shutdown and pumping station protection • Revise control strategies and equipment response times • Flood protection measures and critical equipment • Emergency bypass pumping equipment and piping • Recondition major equipment to meet original factory specifications • Purchase critical spare parts for major pumping station equipment Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Pumping Stations Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 ANEDesign- $0 $0 $0 $0 $0 Construction: $36,000 $25,000 $103,000 $436,000 $600,000 lI FY Total: $36,000 1 $25,000 1 $103,000 1 $436,000 1 $600,000 156 June 7, 2018 Regular Board Meeting Agenda Packet- Page 283 of 446 Page 165 of 264 Capital Improvement Program—CIB Collection System Program Large Diameter Pipeline Inspection Program ProgramProject Name Large Diameter Pipeline Inspection Program: Collection System Phase: Planning Priority Rank: Critical Ranking Score: 70 Purpose: To assess the condition of large diameter trunks and interceptors -� and confirm the timing for replacement needs. Infr Agructure Capacity Drivers: Central San owns 76 miles of wastewater trunks and interceptors Regulatory Sustainability ranging from 24-inches to 102-inches in diameter. The typical lifespan of large diameter sewers ranges from 50 to 150 years depending on pipe material, hydraulic, operating, and .. environmental conditions. Nearly half of Central San's large , diameter pipes are over 50 years in age and should be evaluated for remaining life. Although Central San performs CCTV inspection of large diameter sewers, CCTV inspection is not always practical and does not always provide an accurate condition assessment. For example, CCTV cannot detect external corrosion and cannot assess the condition of the pipe invert when sediment is present. A combination of CCTV inspection, enhanced CCTV with laser profiling, sonar, hydrogen sulfide monitoring, and visual walk-over surveys are recommended to assess the condition of large diameter sewers. Inspection information can be used to ensure replacement of pipelines prior to failure and appropriate timing of replacement. Description: A phased large diameter inspection program was developed and prioritized based on pipeline age and consequence of failure: • Inspect nine miles of high-risk large diameter pipelines every five years • Inspect six miles per year of medium-risk large diameter pipelines for the first three years followed by three miles per year after the first three years (seven-year inspection frequency) • Inspect eight miles per year of low-risk large diameter pipelines (seven-year inspection frequency) Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Locatioll Collection System Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $200,000 $50,000 $515,000 $1,030,000 $1,795,000 EEL Design- $0 $0 $0 $0 $0 Construction: $0 $0 $0 $0 $0 FY Total: $200,000 $50,000 $515,000 $1,030,000 $1,795,000 157 June 7, 2018 Regular Board Meeting Agenda Packet- Page 284 of 446 Page 166 of 264 Capital Improvement Program—CIB Collection System Program Force Main Inspection Proram . . Program: Collection System IL I Phase: Planning Priority Rank: Critical Ranking Score: 65 Purpose: Pro ect Drivers To assess the condition of force mains and confirm the timing for replacement needs. Infrastructure Capacity Drivers: Central San maintains 31 force mains with a combined length of Regulatory Sustainability approximately 23 miles. More than 65 percent of the force mains are made of metallic materials which are prone to corrosion. The typical lifespan of force mains ranges from 50 to 100 years. Over half of the existing force mains were installed 40 or more years ago. The remaining lifespan of individual force mains are difficult , to estimate without inspection-based condition assessment results. Force main failure methods include internal corrosion, external corrosion, mechanical failures due to high pressure and surge events or due to external loads and stresses, and force main material or installation defects. Recommended force main inspection methods include CCTV inspection,pressure transient w , monitoring, acoustic leak detection, and electromagnetic .- inspection. , Description: A phased force main inspection program was developed and prioritized based on force main age and consequence of failure: • FYs 2017-20, inspect force mains at Moraga, Orinda Crossroads, Lower Orinda, Bates Boulevard, and Wagner Ranch Pumping Stations • FYs 2020-27, inspect force mains at San Ramon, Martinez, Fairview, Maltby, Clyde, Concord Industrial, and Acacia Pumping Stations • Other pumping stations have a lower risk and will be inspected in a later phase Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Collection System • . . - _Em� Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Planning: $75,000 $50,000 r $0 $0 7$0 Design: $0 $0 0 Construction: $0 $0 $0 $0 FY Total: $75,000 $50,000 $0 $0 $125,000 158 June 7, 2018 Regular Board Meeting Agenda Packet- Page 285 of 446 Page 167 of 264 Capital Improvement Program—CIB Collection System Program North Orinda Sewer Renovation — Phase 7 • Program: Collection System Phase: Construction Priority Rank: I CriticalRanking Score: 65 Purpose: . _ . - To replace and renovate small diameter sewers within the northern * Aging g Capacity portion of the City of Orinda. Infrastructure Drivers: Central San's 1,500+mile collection system has pipe segments that Regulatory Sustainability range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/or threat of structural collapse. n More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry weather SSOs. Central San implemented a sewer renovation program in 1991 to replace small diameter sewers to control future maintenance requirements and costs, to minimize the number of overflows, to limit the quantity of rainfall entering the collection system, and to improve the level of service provided to customers. Description: The North Orinda Sewer Renovation—Phase 7 Project will replace or rehabilitate up to approximately 8,600 feet of small diameter sewers located in both public right-of-way and easements within the northern portion of the City of Orinda, north of Highway 24. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): City of Orinda Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Wotal Planning: $203,000 $0 $0 $0 $203,000 Design: $322,000 $0 $0 $322,000 Construction: $111,000 $3,731,000 $0 $0 $3,842,000 FY Total: $636,000 $3,731,000 $0 $ $4,367,000 159 June 7, 2018 Regular Board Meeting Agenda Packet- Page 286 of 446 Page 168 of 264 Capital Improvement Program—CIB Collection System Program Lafayette Sewer Renovation — Phase 12 Troject Name Lafayette Sewer Renovation— Phase 12 Project No. 8446 Program: Collection System Phase: Construction Priority Rank: Critical Ranking Score: 65 Purpose: Project Drivers To replace and renovate small diameter sewers within the City of Aging Capacity Lafayette. Infrastructure Drivers: Regulatory Sustainability Central San's 1,500+mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/or threat of structural - -- collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do - not currently perform well, and they are the source of over 90 percent of the dry weather SSOs. Central San - implemented a sewer renovation program in 1991 to - replace small diameter sewers to control future maintenance requirements and costs, to minimize them number of overflows, to limit the quantity of rainfall entering the collection system, and to improve the level of � service provided to customers. Description: The Lafayette Sewer Renovation—Phase 12 Project will replace or rehabilitate up to approximately 8,800 feet of small diameter sewers located in both public right-of-way and easements within the City of Lafayette. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): City of Lafayette Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $150,000 $0 $0 $0 $150,000 Design. $320,000 $0 $0 $0 $320,000 Construction: $166,000 $3,397,600 $0 $0 $3,563,600 l FY Total: $636,000 $3,397,600 $0 $0 $4,033,600 160 June 7, 2018 Regular Board Meeting Agenda Packet- Page 287 of 446 Page 169 of 264 Capital Improvement Program—CIB Collection System Program Pumina Station Security Imi2rovements ImprovementsProject Name Pumping Station Security Program: Collection System Phase: Design Priority Rank: Critical Ranking Score: 65 Purpose: 112MMMEMEW To improve physical security at the pumping stations and to protect Aging Capacity existing critical assets. Infrastructure Drivers: Regulatory Sustainability In addition to worker safety, there are many critical assets that require physical security improvements to minimize the risk. In FY 2016-17, a comprehensive security study was completed for major Central San facilities that utilized the principles of American Water Works Association J100 Risk Analysis and Management for Critical Asset Protection methodology (RAMCAP(M J100). RAMCAP® J100 is a comprehensive approach that enables the estimation of relative risks across multiple assets while considering both malevolent and natural hazards. The RAMCAP J100 method is a 7-step process including: 1)Asset Characterization; 2) Threat Characterization; 3) Consequence Analysis; 4) Vulnerability Analysis; 5) Threat Analysis; 6)Risk/Resilience Analysis; and 7) Risk/Resilience Management. Description: Findings related to the pumping stations will be implemented under this project. Some improvements may be implemented in collaboration with other capital programs. In general, recommendations include: • Increased surveillance and intrusion detection • Access control improvements • Perimeter fencing repair • Increased signage and other miscellaneous security improvements Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Locatioll Pumping Stations Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $131,000 $0 $0 $0 $131,000 Construction: $0 $25,000 $51,500 $360,5001 $437,000 FY Total: $131,000 $25,000 $51,500 $360,500 $568,000 161 June 7, 2018 Regular Board Meeting Agenda Packet- Page 288 of 446 Page 170 of 264 Capital Improvement Program—CIB Collection System Program Manhole Modifications Program: Collection System Phase: Construction Priority Rank: Critical Ranking Score: 65 Purpose: W To replace, repair, or raise manhole covers and top blocks to match Aging roadway elevations in coordination with pavement restoration plans Infrastructure Capacity with agencies or existing conditions. Drivers: Regulatory Sustainability Central San's collection system includes over 37,000 manholes. Many of these manholes are in paved roadways, public right-of-way and private roadways, andr;. r - throughout the entire service area. Continual replacement of manhole covers or repairing top blocks are needed on =t a yearly basis as the system ages or the roadways are ` ' t rebuilt. Description: This project will fund the replacement or raising of manhole covers and repairing top blocks either through construction projects or reimbursements through other agency contractors through joint powers agreements. Operating Department Impact and Funding Source: This project does not have an impact on the operating budgets. However, if Operations were to self- perform, it would have a significant impact. Project expenditures are funded from Capital Revenues. Location(s): Collection System BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 $0 Construction: $400,000 $300,000 $309,000 $1,236,000 $2,245,000 FY Total: $400,000 $300,000 $309,000 $1,236,000 $2,245,000 162 June 7, 2018 Regular Board Meeting Agenda Packet- Page 289 of 446 Page 171 of 264 Capital Improvement Program—CIB Collection System Program Collection System Modelin Su ort IL Project Name Collection S stem Modeling . . . �ll 7- Project No. 8449 Program: Collection System Phase: Construction Priority Rank: Critical Ranking Score: 65 Purpose: - . To maintain and update the InfoWorks®hydrodynamic collection Aging Capacity system model. Infrastructure Drivers: A new InfoWorks® Integrated Catchment Modeling (ICM) Regulatory Sustainability hydrodynamic collection system model was configured and calibrated for 190 miles of the trunk sewer system. The new model replaced an old steady-state static model that was no longer supported by vendors and did not offer the same level of accuracy or useful output information that is available with new vendor-supported state-of-the-art hydrodynamic models. The new model is used for several critical Central San operations such as evaluating sewer capacities, identifying capacity deficiencies, developing sewer sizing criteria, evaluating impacts from increased flows due to development (paid by permit or plan review fees) and special discharges, - evaluating re-routing options, and providing hydraulic grade line information that is helpful during emergencies or sewer renovation work. Description: The following are major elements included in the project: • Complete migration from the previous steady-state static model to the new InfoWorks® ICM model • Complete expansion of the trunk sewer model into high priority development areas where anticipated sewer capacity evaluations will be required • Identify critical areas with model predicted surcharge conditions and install level monitors or smart manhole covers Operating Department Impact and Funding Source: This project will have a minor impact on the operating budget due to software updating and licensing costs. Project expenditures are funded from Capital Revenues. Locatioll Collection System Project Budget__. 11�n Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 1 $0 $0 Design: $0 0 $0 $0 Construction: $100,000 $100,000 $103,000 $206,000 $509,000 FY Total: 1 $100,000 1 $100,000 $103,000 $206,000 $509,000 163 June 7, 2018 Regular Board Meeting Agenda Packet- Page 290 of 446 Page 172 of 264 Capital Improvement Program—CIB Collection System Program Development Sewerage Support Program: Collection System 11ML Phase: Construction Priority Rank: N/A Ranking Score: N/A Purpose: Project Drivers To provide for appropriate capitalization of Central San force Aging account labor and other expenses for planning, design, and Infrastructure Capacity construction of developer installed sewer facilities. Drivers: Regulatory Sustainability Central San requires property owners to pay for main sewer extensions needed to serve their property. Where sewers are designed and installed by developers or other private parties, Central San planning, plan review, right-of-way, Standard inspection and record drawing/mapping efforts are Specificationis required to ensure that installed sewers meet for is Central San's Standard Specifications for Design and Design and Construction Construction. These activities are capitalized under this .* project. - A portion of the revenue collected for plan review and a.. , inspection is credited to the Sewer Construction Fund andItA offsets some of the expenditures made under this capital project. Description: This is a cost-neutral project offset by development fees. The costs for the sewer infrastructure will ultimately be paid by the developers. This project will be used to fund, right-of-way, survey, and consultant costs for developer installed sewer facilities. Operating Department Impact and Funding Source: This project will have a minor impact on the operating budgets; however, these costs are recovered under fees paid for by developers. Project expenditures are funded from Capital Revenues. Location(s): Collection System . - Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 Construction: $400,000 $250,000 $309,000 $1,236,000 $2,195,000 FY Total: $400,000 $250,000 $309,000 $1,236,000 $2,195,000 164 June 7, 2018 Regular Board Meeting Agenda Packet- Page 291 of 446 Page 173 of 264 Capital Improvement Program—CIB Collection System Program Collection System Sewer Renovation — Phase 1 MOM Program: Collection System Phase: Design/Construction Priority Rank: Critical Ranking Score: 65 Purpose: To plan and design for sewer replacement projects for collection W Aging system sewers that are near the end of their useful lives. Infrastructure Capacity Drivers: Regulatory Sustainability Nearly all Central San's sewers will reach the end of their useful lives within the next 100 years. The bulk of the replacement is recommended beyond the Ten-Year CIP. Continual replacement will provide the best possible protection against SSOs. The ° InfoMaster® sewer replacement risk model was developed to prioritize the timing for sewer replacement and to develop a risk- 20�OW,W based sewer replacement program. In the first five years, Central San is planning to replace an average of 7.6 miles per year followed by approximately 8.6 miles per year for the next five years. Replacement for years 10 through 20 in the CIP increases to potentially 18.4 miles per year. The Collection System Sewer Renovation—Phase 1 will span the next five fiscal years (FYs 2018-23). Description: This project is for sewer selection planning and design work for new sewer replacement projects totaling up to 36,500 feet of replacement. These designs will be bid and split into individual projects for construction and will span two fiscal years. These projects include: • Walnut Creek Sewer Renovation—Phase 13 • Lafayette Sewer Renovation—Phase 13 • Danville Sewer Renovation—Phase 3 • Martinez Sewer Renovation—Phase 6 • South Orinda Sewer Renovation—Phase 6 • Miscellaneous sewer replacements in Alamo, Danville, Moraga, Unincorporated Contra Costa County, and other locations or jurisdictions in the service area. Operating Department Impact and Funding Source: Impacts on the operating budgets has yet to be determined. Project expenditures are funded from Capital Revenues. Locatioll Collection System . . - Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs r$2,5O4,000 Planning: $50,000 $600,000 $618,000 $1,236,000 Design: $0 $1,400,000 $2,051,740 $2,884,000 $6,335,740 Construction: $0 $612,527 $15,511,800 $31,415,000 $47,539,327 FY Total: $50,000 $2,612,527 $18,181,540 $35,535,000 $56,379,067 165 June 7, 2018 Regular Board Meeting Agenda Packet- Page 292 of 446 Page 174 of 264 Capital Improvement Program—CIB Collection System Program Pumping Stations Upgrades — Phase 2 UpgradesProject Name Pumping Stations Program: Collection System Phase: Design Priority Rank: Critical Ranking Score: 65 Purpose: N-IMMOMMIll To address aging infrastructure and reliability needs at the Martinez, Aging Capacity Fairview, and Maltby Pumping Stations. Infrastructure Drivers: Regulatory Sustainability As part of the CWMP, a comprehensive condition assessment of the pumping stations has identified several structural, mechanical, << - electrical, and instrumentation improvements. An Arc Flash Study has also identified several improvements required at these pumping stations. This project, previously referred to as the Moraga/Crossroads Pumping Station Project(DP 8436), was combined with the Fairview/Maltby Project(DP 8429 Closed). r: Description: The following are major elements included in the project: • Replace corroded steel dry pits with new wetwells at the Fairview and Maltby Pumping Stations • Replace backup generators, electrical, instrumentations and controls improvements i • Rehabilitate or replace flow meters at Martinez, Fairview, and Maltby Pumping Stations • Recondition or replace pumps, valves, and gates • Repair/recoat piping and concrete • Major electrical/controls replacement, including Arc Flash Study recommendations • Replace worn control panels and seismically brace control panels and electrical cabinets • Improve safety devices such as replacement of gas detection systems and eye wash stations Operating Department Impact and Funding Source: Impacts on the operating budgets has yet to be determined. Project expenditures are funded from Capital Revenues. Location(s): Martinez, Fairview, and Maltby Pumping Stations dget Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $50,000 $0 $0 $50,000 Design: $0 $0 $907,000 $2,300,000 $3,207,000 Construction: $0 $0 $0 $22,363,000 $22,363,000 FY Total: $0 $50,000 $907,000 $24,663,000 $25,620,000 166 June 7, 2018 Regular Board Meeting Agenda Packet- Page 293 of 446 Page 175 of 264 Capital Improvement Program—CIB Treatment Plant Program CIB — Treatment Plant Program The following are the major points of emphasis for the FY 2018-19 Treatment Plant Program: • Replace equipment as they reach the end of their useful lives to avoid structural and mechanical failures, reduce downtime, and control maintenance costs; • Upgrade Central San facilities to seismic building codes and standards; • Respond to regulatory requirements related to pending air emissions regulations; and • Increase sustainability and energy related projects. Asset Rehabilitation and Replacement Projects Projects in this subprogram are targeted at asset preservation, rehabilitation, and replacement. The main projects in this program are the Piping Renovations—Phase 9 Project and Mechanical and Concrete Renovations Project, which will improve the process reliability of the treatment plant by renovating and/or replacing various piping, instrumentation, equipment, and repair concrete structures. Other projects include Ultraviolet(UV) Disinfection Equipment Upgrades, DP 7362, and Plant-Wide Instrumentation Upgrades, DP 7357, which will extend the useful life of existing equipment and/or facilities. The construction of the Headworks Screenings Upgrade Project, DP 7327, will continue from the previous year. Another significant project will be the continuation and completion of the final design of the Solids Handling Facility Improvements Project, DP 7348, which includes sludge blend tanks, solids dewatering equipment replacement(feed pumps, centrifuges, cake pumps), wet scrubber, ash handling improvements, as well as associated electrical, instrumentations and controls improvements. Regulatory Compliance/Planning/Safety Projects This subprogram includes projects that emphasize preparing for future regulations and treatment plant planning, which includes pilot testing various new technologies. Work will be implemented to comply with pending new air permitting requirements and the installation of incinerator emissions improvements is included in the Solids Handling Facility Improvements Project. Safety and security improvements will continue under this subprogram. Solids Conditioning Building and multiple hearth furnaces seismic improvements evaluation and design will continue under the Solids Handling Facility Improvements Project. The Plant Operations Division office building seismic improvement project will also begin. Expansion Projects There are no projects in the Expansion Program in FY 2018-19. Sustainability/ Resiliency/Energy Projects Under this subprogram, aeration and energy related projects will be initiated. ir Example of Project Driver(s) Each project is described on the following pages. Each project Aging Capacity summary includes project name, description,prioritization, purpose, Infrastructure M operating department impact and funding source, location, budgetary information and drivers (i.e., what is the main impetus M for a project). The main driver(s) for each project is (are) identified Regulatory Sustainability by highlighting in orange background color and bold text. Driver(s) that is (are) not as significant or not relevant is (are) displayed in gray. 167 June 7, 2018 Regular Board Meeting Agenda Packet- Page 294 of 446 Page 176 of 264 Capital Improvement Program-CIB Treatment Plant Program All projects in this program are summarized, including planned expenditures, in the following Table 3: CIB Table 3 - FY 2018-19 Treatment Plant Pro ram Bud et/Pro'ect Summary Project Alllllllllllllllllllll�Projed� Budget-to- FY 2018-19 FY 2019-20 Future FYs Total Project Number Date Cost Pump&Blower Building Seismic 7291 Upgrade $6,582,000 $0 $0 $0 $6,582,000 7292 Switchgear Refurbishment-Phase 2 $770,000 $200,000 $226,600 $0 $1,196,600 7304 PLC Systems Upgrades $575,000 $110,000 $113,300 $226,600 $1,024,900 7315 Applied Research&Innovations $557,274 $300,000 $515,000 $1,030,000 $2,402,274 Plant Control System Network 7317 Upgrades $330,000 $100,000 $0 $0 $430,000 7320 Plant Energy Optimization(Co Gen) $1,094,000 $0 $0 $0 $1,094,000 7322 Fire Protection System-Phase 2 $1,406,000 $0 $0 $0 $1,406,000 7326 Equipment Replacement $1,166,000 $250,000 $0 $0 $1,416,000 7327 Headworks Screenings Upgrade $8,144,000 $76,000 $0 $0 $8,220,000 Influent Pump Electrical 7328 Improvements $100,000 $510,000 $1,380,000 $2,758,000 $4,748,000 7329 Furnace Burner Upgrades $220,000 $0 $0 $0 $220,000 7330 Piping Renovation-Phase 9 $2,566,000 $614,000 $0 $0 $3,180,000 Plant Control System 1/0 7339 Replacement $470,000 $900,000 $1,133,000 $1,839,000 $4,342,000 Walnut Creek/Grayson Creek Levee 7341 Rehab $100,000 $0 $515,000 $515,000 $1,130,000 Solids Handling Facility 7348 Improvements $4,975,000 $5,715,000 $11,130,000 $60,280,000 $82,100,000 Energy Recovery and Blower 7349 Replacement $300,000 $1,200,000 $3,713,000 $54,937,000 $60,150,000 7351 Mechanical and Concrete Renovations $1,300,000 $3,000,000 $3,000,000 $0 $7,300,000 7352 UV Disinfection Upgrades $0 $500,000 $300,000 $300,000 $1,100,000 7353 Outfall Improvements-Phase 7 $0 $400,000 $2,240,000 $1,812,000 $4,452,000 Treatment Plant Security 7354 Improvements $87,000 $50,000 $788,000 $915,000 $1,840,000 7355 Odor Control Upgrades-Phase 1 $44,000 $200,000 $824,000 $2,935,000 $4,003,000 7357 Plant-Wide Instrumentation Upgrades $100,000 $190,000 $515,000 $1,236,000 $2,041,000 7358 Innovative Renewable Energy Project $300,000 $0 $100,000 $200,000 $600,000 Solids Conditioning Building Roof 7359 Replacement $500,000 $800,000 $0 $0 $1,300,000 7360 Existing Plant Facilities As-Is Drawings $100,000 $100,000 $103,000 $51,500 $354,500 Plant Operations Building(POB) 7362 Seismic Upgrades $400,000 $1,100,000 $1,030,000 $0 $2,530,000 7363 Treatment Plant Planning $450,000 $450,000 $566,500 $1,133,000 $2,599,500 Treatment Plant Safety Enhancement 7364 Phase 5 $0 $100,000 $100,000 $0 $200,000 Total Program $32,636,274 $16,865,000 $28,292,400 $130,168,100 $207,961,774 168 June 7, 2018 Regular Board Meeting Agenda Packet- Page 295 of 446 Page 177 of 264 Capital Improvement Program—CIB Treatment Plant Program Pum and Blower Building Seismic UIMpradde ME911111 fjr10[9 E.19011JI;gm-111 ILS III to 1L. , • • Program: Treatment Plant 1JL Phase: Construction Priority Rank: Critical Ranking Score: 65 Purpose: Project To improve the seismic safety of the Pump and Blower Building. Aging Capacity Infrastructure Drivers: In January 2008, the State of California adopted the 2007 California Regulatory Sustainability Building Code (2007 CBC). Among the updates in the 2007 CBC were significant changes to seismic design. In 2009, a seismic evaluation was completed for the treatment plant facilities (Martinez Wastewater Treatment Plant Seismic Vulnerability Assessment of Selected Facilities, December 2009). Included in the evaluation were recommendations p� to bring the Pump and Blower Building up-to-date with current seismic design standards. The Pump and Blower Building houses equipment that is critical for treatment plant operation including the aeration turbines,primary effluent pumps, standby effluent pumps, final effluent pump, plant air system, 3W pumps, and critical electrical rooms. Description: Construct seismic improvements to the Pump and Blower Building as recommended by the 2009 Vulnerability Assessment to improve seismic safety. Major components include concrete shearwalls, structural steel bracings, modifying columns and beams, and other specialty seismic design upgrades to Life Safety Plus standards. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Pump and Blower Building BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $715,000 $0 $0 $0 $715,000 Construction: $5,867,000 $0 $0 $0 $5,867,000 Y Total: $6,582,000 $0 $0 $0 $6,582,000 169 June 7, 2018 Regular Board Meeting Agenda Packet- Page 296 of 446 Page 178 of 264 Capital Improvement Program—CIB Treatment Plant Program Switchgear Refurbishment - Phase 2 Program: Treatment Plant Phase: Construction Priority Rank: Critical Ranking Score: 70 Purpose: • - To refurbish electrical switchgears in order to maintain the Aging Capacity reliability of critical electrical infrastructure at the treatment plant. Infrastructure P y Drivers: Regulatory Sustainability The electrical switchgear throughout the treatment plant was installed in the 1970s and has been well maintained using preventive techniques. Inspections in 2003 and 2004 showed that several trip r. units on the circuit breakers required replacement. Circuit breakers have been sent out for Class 1 reconditioning and trip unit replacement on an as-needed basis. Description: h .nunaN This project is a multi-year program to repair and replace treatment plant electrical equipment including: • Refurbish or replace approximately 66 480V circuit breakers over a five-year period - • Replace 2400V circuit breakers and air breakers at key substations (e.g. Substations 52 and 82) • Replace protective relays for various switchgear throughout the treatment plant Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Several Substations within the Treatment Plant BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 1 JIM Construction: $770,000 $200,000 $226,600 $0 $1,196,600 FY Total: $770,000 $200,000 $226,600 $0 $1,196,600 170 June 7, 2018 Regular Board Meeting Agenda Packet- Page 297 of 446 Page 179 of 264 Capital Improvement Program—CIB Treatment Plant Program PLC System ; Upgrades Upgrades7304 Program: Treatment Plant Phase Construction Priority Rank Very High LRanking Score 50 Purpose: P IIIIII To upgrade programmable logic control (PLC) systems to current Aging Capacity technology for increased performance and improved compatibility Infrastructure to develop and maintain programming standards. Drivers: Regulatory Sustainability The first PLCs were installed at the treatment plant in the mid-1980s. The number of PLCs has increased from the original two PLCs to more than 30 PLCs. Programming software for the newer PLCs no longer runs efficiently on the older programming units. ; Description: The following are major elements included in the project: • Upgrade hardware and software necessary to maintain new PLC applications • Replace older computers with newer computers capable of running current software • Upgrade older PLC models to maintain compatibility with new equipment, instrumentation, and controls • Develop and document programming standards for PLC and Supervisory Control and Data Acquisition (SCADA) Operating Department Impact and Funding Source: This project will have minor savings for the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Miscellaneous Areas within the Treatment Plant Budget Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $96,700 IL $0 $96,700 Construction: $478,300 $110,000 $113,300 $226,600 $928,200 FY Total: $575,000 $110,000 $113,300 $226,600 $1,024,900 171 June 7, 2018 Regular Board Meeting Agenda Packet- Page 298 of 446 Page 180 of 264 Capital Improvement Program—CIB Treatment Plant Program A lied Research & Innovations . . - 1111111111 1111�� III!! . Program: Treatment Plant Phase: Planning Priority Rank Very High Ranking Score: F 50 Purpose: - To implement applied research projects that evaluate promising Aging Capacity technologies,processes, and innovations. Infrastructure Drivers: Regulatory Sustainability One of Central San's goals is to embrace innovation and to be a leader in the wastewater industry. There are several emerging and innovative nutrient removal and solids handling technologies that may offer significant savings f and reduced footprint requirements when compared to conventional technologies. Innovations in equipment and instrumentation that may be beneficial will be considered. Prior to implementing any major renovations for nutrient removal or converting solids handling technologies, staff will evaluate the feasibility of emerging technologies and implement applied research pilots. These pilots will help oe verify the compatibility with wastewater and facilities, increase understanding of the technology, and help determine whether to consider the technology. Description: Examples of some applied research opportunities being considered include: • Nutrient removal technologies such as membrane aerated bioreactors or aerobic granular sludge • New technologies for large diameter and force main condition assessment Operating Department Impact and Funding Source: The impacts to operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Miscellaneous Areas within the Treatment Plant Project Budget - Phase: Budget-to-Date FY 2018-19 FY 2019-20 Tture FYs �To!tal Planning: $557,274 $300,000 $515,000 $1,030,000 $2,402,274 Design: $0 $0 $0 $0 $0 Construction: $0 $0 $0 $0 $0 FY Total: $557,274 $300,000 $515,000 $1,030,000 $2,402,274 172 June 7, 2018 Regular Board Meeting Agenda Packet- Page 299 of 446 Page 181 of 264 Capital Improvement Program—CIB Treatment Plant Program Plant Control System Network U rades Program: Treatment Plant Phase: Construction Priority Rank Very High Ranking Score: 60 Purpose: To upgrade the Plant Control System Ethernet Network to Aging Industrial Ethernet standards. Infrastructure Capacity Drivers: Regulatory Sustainability In 2006, Central San's treatment plant installed a new Ethernet based supervisory control and data acquisition (SCADA) system. At the time the SCADA system was installed, Ethernet was limited to the servers only and was redundant. Over time, the Ethernet system expanded to the entire treatment plant, but the redundancy was not maintained. Currently, the primary path for treatment ' > , plant data traffic runs over the Ethernet system that is JW neither redundant nor sufficiently reliable to meet control 1900` system standards. 2 yrs Description: The following are major elements included in the project to meet industry standard redundancy and reliability standards: • Install and configure industrial type Ethernet switches • Install fiber optic lines for the Treatment Plant Control System • Install industrial wireless network Operating Department Impact and Funding Source: This project will have minor savings for the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Miscellaneous Areas within the Treatment Plant Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 ZCon esign: $0 $0 $0 $0 $0 ction: $330,000 $100,000 $0 $0 $430,000 Total: $330,000 $100,000 $0 $0 $430,000 173 June 7, 2018 Regular Board Meeting Agenda Packet- Page 300 of 446 Page 182 of 264 Capital Improvement Program-CIB Treatment Plant Program Plant Ener v O timization — Coc jeneration EnergyProject Name Plant Optimization Project No. 7320 Program: Treatment Plant Phase: Construction Priority Rank I Critical Ranking Score: 70 Purpose: • - To increase energyefficient on-site energy production, and � Aging y� gyInfrastructure Capacity decrease greenhouse gas emissions for the treatment plant. Drivers: Regulatory Sustainability The purpose of this project is to increase energy efficiency, reduce utility costs, and decrease carbon monoxide (CO) emissions at the treatment plant. There has been a significant increase in Pacific Gas & Electric Company costs due to CO emission limits imposed by the Bay Area Quality Management District on the cogeneration system(Cogen). Based on current utility - z bills, the yearly import increase is approximately $300,000. _ This Project will reduce CO emissions by installing an oxidation catalyst and increase energy efficiency during hot p weather operations by installing an evaporative cooling , system. These improvements will help ensure regulatory compliance and reduce electrical costs. ' Description: The following energy efficiency measures include: • Add a CO catalyst • Add an evaporative cooler system on the intake of the Cogen • Replace the reverse osmosis water system to the Cogen • Modify the Cogen controls system for project elements Operating Department Impact and Funding Source: This project will have significant impacts (energy savings) to the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Solids Conditioning Building BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $80,000 $0 $0 $0 $80,000 Design. $320,000 $0 $0 $0 $320,000 Construction: $694,000 $0 $0 $0 $694,000 AffFY Total: $1,094,000 $0 $0 $0 $1,094,000 174 June 7, 2018 Regular Board Meeting Agenda Packet- Page 301 of 446 Page 183 of 264 Capital Improvement Program—CIB Treatment Plant Program Fire Protection System — Phase 2 Program: Treatment Plant Phase: Construction Priority Rank Critical Ranking Score: 65 Purpose: • - To upgrade or replace treatment plant fire alarm systems. Aging Capacity Infrastructure Drivers: Most of the fire alarm system was built in the late 1970s, and the Regulatory Sustainability fire alarm control panel was upgraded in the early 2000s. There are seven existing fire systems (alarm, monitoring, and suppression types) at the treatment plant. The existing fire systems are the primary notifications to the control-room operators and the occupied buildings in the event of a fire. Wiring and devices on the fire alarm system continue to be problematic and are in frequent need of repair. Repairs to .■ the fire alarm system have become extremely complex and difficult; therefore, long-term reliable improvements to the `Y fire alarm system are needed. '*� xa Description: Staff anticipates the recommended improvements will be implemented over a multi-year fire improvement program: — • Phase 1 of the project, completed in 2013, replaced the outdated Headquarters Office Building fire system and corrected limited treatment plant deficiencies • Phase 2 includes a comprehensive evaluation and implementation of recommended improvements for life safety of occupied(public and staff) areas of all staffed and critical process areas in the treatment plant Operating Department Impact and Funding Source: This project will have insignificant impact to the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Miscellaneous Areas within the Treatment Plant BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 F7i; Total JCon anning: $162,000 $0 $0 $162,000 Design: $200,000 $0 $0 $200,000 ruction: $1,044,000 $0 $0 $1,044,000 Y Total: $1,406,000 $0 $0 $0 $1,406,000 175 June 7, 2018 Regular Board Meeting Agenda Packet- Page 302 of 446 Page 184 of 264 Capital Improvement Program—CIB Treatment Plant Program Equipment Re lacement Program: Treatment Plant Phase: Construction Priority Rank Critical Ranking Score: 80 Purpose: ProjectE To replace pumping systems, mechanical equipment, and minor Aging Capacity process support facilities throughout the treatment plant. Infrastructure Drivers: Regulatory Sustainability Several major pieces of equipment are reaching the end of their useful life and require replacement/upgrading or #, reconditioning. This project will be coordinated with the Asset Management Program to reduce maintenance costs, increase reliability, and improve operations through replacement or reconditioning of technologically obsolete, worn out, maintenance intensive equipment, or equipment that is no longer serviceable or supported by its manufacturer. Description: This project is a multi-year program to repair and replace equipment such as: • Pumps and impellers • Miscellaneous steam system components, traps, and accessories • Miscellaneous air conditioning systems for buildings and motor control center rooms • Various small pumping systems and generators • Miscellaneous support equipment such as cranes, elevators, etc. • Other equipment in need of immediate repair as identified by the Asset Management Program, and Maintenance and Operations staff Operating Department Impact and Funding Source: This project will have insignificant impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Miscellaneous Areas within the Treatment Plant Project Budget Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 0 Construction: $1,166,000 $250,000 $0 $0 $1,416,000 FY Total: $1,166,000 $250,000 $0 $0 1,416,000 176 June 7, 2018 Regular Board Meeting Agenda Packet- Page 303 of 446 Page 185 of 264 Capital Improvement Program—CIB Treatment Plant Program Headworks Screenin s U rade Program: Treatment Plant Phase: Construction Priority Rank: I Critical Ranking Score: 75 Purpose: • - IIIIII To separate and remove screenings and plastics from the influent Aging Capacity wastewater. Infrastructure Drivers: Regulatory Sustainability The current screenings operation utilizes coarse bar screens installed approximately 25 years ago at the Headworks to separate screenings. The screenings are then processed by grinders , and reintroduced immediately downstream of the screens. This operation does not remove any of the plastics in the wastewater which contribute to fouling of numerous liquid and solids stream processes and equipment and may contribute to furnace acid gas emission impacting future regulations. Screenings removal will optimize operations, protect downstream treatment plant facilities, extend , - downstream equipment life, minimize screenings - A�__ downtime due to grinder hopper overload, and reduce �� equipment maintenance. - OF Description: The project investigated the current Headworks screening operation and recommended the most strategic and cost-effective screenings removal improvements. The project includes the following major elements: • Replace four existing 3/4-inch bar screens with four new multi-rake 1/4-inch bar screens • Install new screenings washer/compactors, sluiceway, and screenings handling facility • Replace two existing 4-inch bar racks with two re-purposed existing 3/4-inch bar screens, hoppers, and grinders Operating Department Impact and Funding Source: This project will have significant impact(increased disposal costs) on the operating budgets. The project also includes minor energy savings and long-term reduction of equipment maintenance. Project expenditures are funded from Capital Revenues. Location(s): Headworks Facility Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FY! Total Planning: $200,000 $0 $0 $0 $200,000 Design. $750,000 $0 $0 $0 $750,000 Construction: $7,194,000 $76,000 $0 $0 $7,270,000 FY Total: $8,144,000 $76,000 $0 1 $0 $8,220,000 177 June 7, 2018 Regular Board Meeting Agenda Packet- Page 304 of 446 Page 186 of 264 Capital Improvement Program—CIB Treatment Plant Program Influent Pump Electrical Im 9rovements . . Program: Treatment Plant Phase: Planning Priority Rank: I Critical Ranking Score: 65 Purpose: mote 5,19kyl:1 To address aging electrical components of the influent pumps and Aging improve reliability. Infrastructure Capacity Drivers: Regulatory Sustainability The Influent Pump Facility is critical to operations. During wet weather, some of the pumps convey wastewater to the holding basins. Without the pumps, wastewater cannot be treated or stored in the basins. The Influent Pump motors are in a dry pit 1_ room below grade that is susceptible to flooding. A leak in the .� piping or flooding of the connected tunnels would potentially submerge the motors and the entire treatment plant would experience a catastrophic shutdown. Electrical improvements are recommended to improve reliability and resiliency. The Influent Pumps PLCs and variable frequency drives (VFDs) are outdated technology installed over 20 years ago and are becoming increasingly difficult to maintain. These VFDs have experienced multiple failure recently and are essential to -- managing flows,particularly during wet weather events. Description: Several major improvements in the influent pumping process area include: • Replace Influent Pumps VFDs and upgrade Influent Pumps PLCs • Replace Influent Pumps motor(s)with immersible motor(s) or elevate to withstand flooding • Replace Headworks Rooftop Chiller and related piping • Add Influent Pump No. 6 for reliability and redundancy during peak wet weather events Operating Department Impact and Funding Source: The impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Influent Pump Station (Headworks Facility) Phase: Budget-to-Date FY 2018-19 FY 2019-20Future FYs Total Planning: $100,000 $0 $0 $0 $100,000 Design: $0 $510,000 $140,00 $$0 $650,000 Construction: $0 $0 $1,240,000 $2,758,000 $3,998,000 FY Total: $100,000 $510,000 $1,380,000 $2,758,000 $4,748,000 178 June 7, 2018 Regular Board Meeting Agenda Packet- Page 305 of 446 Page 187 of 264 Capital Improvement Program—CIB Treatment Plant Program Furnace Burner Upgrades lot Program: Treatment Plant Phase: Design Priority Rank: I Critical Ranking Score: 75 Purpose: To improve the operational flexibility of the existing multiple hearth W Aging furnaces to comply with emission requirements and reduce Capacity supplemental fuel energy consumption. This project is being Infrastructure combined with the Solids Handling Facility Improvements. Regulatory Sustainability Drivers: The furnaces were constructed during the early 1970s and became fully operational in 1985. They were originally designed to incinerate commingled solid waste and sludge; however, they have historically only incinerated wastewater solids. As a result, some of the burners are not optimally sized for the actual furnace loading or for current landfill gas usage, which results in increased difficulty for consistently maintaining proper temperatures in the furnace. In addition, some of the burners, mounts,piping, and associated equipment are 4� ! reaching the end of their useful lives and need to be �► �; replaced. The fuel gas piping to the burners has also developed leaks that require continued attention to meet leak guidelines. Many of the components of the control system are becoming obsolete. Description: The following elements are included in the project: • Replace original fuel gas system piping using welded joints • Evaluate diesel fuel as an additional furnace fuel source for emergency use • Replace fuel system components for two to four of the afterburners (top hearth) and decrease burner output to low oxides of nitrogen/high mix burners for improved temperature control • Replace main burners and controls with new low oxides of nitrogen burners and modern controls Operating Department Impact and Funding Source: This project will have significant impact(energy savings) on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Solids Conditioning Building . . Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $30,000 $0 $0 $0 $30,000 Design: $190,000 $0 $0 $0 $190,000 Construction: $0 $0 $0I $0 $0 FY Total: $220,000 $0 $0 $0 $220,000 179 June 7, 2018 Regular Board Meeting Agenda Packet- Page 306 of 446 Page 188 of 264 Capital Improvement Program—CIB Treatment Plant Program Piping Renovation — Phase 9 i Program: I Treatment Plant EL Phase: 11"Construction Priority Rank: I Critical Ranking Score: 70 Purpose: W To inspect, rehabilitate, and replace above-grade and below-grade piping and related systems at the treatment plant. Infrastructure Capacity Drivers: During the main treatment plant improvements project in the 1970s Regulatory Sustainability (Stage 5A project), numerous above-grade and below-grade piping systems were installed throughout the treatment plant. _ - These pipes convey wastewater, sludge, steam, air, and other utility services between various process areas. Many of these piping systems have been in operation for over 40 years without any major rehabilitation or , replacement. Some piping systems are leaking due to corrosion and the condition of some systems is unknown because they have not been visually inspected. F �,.Q Description: �- The following are major elements included in the project: • Replace miscellaneous chemical systems piping • Replace piping, valves, and pumps throughout the treatment plant • Replace boiler feedwater valves and steam flow transmitters • Replace miscellaneous sludge piping,pumps, valves, floor drains, and water piping • Replace equipment identified by the Asset Management Program, and Operations and Maintenance staff • Water system upgrades (contingency project) and includes scope of the Treatment Plant Urgent Repairs (Project 7314 Closed) Operating Department Impact and Funding Source: This project will have insignificant impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Miscellaneous Areas within the Treatment Plant Project Eludget Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $230,000 $0 $0 $0 $230,000 Design: $450,000 $0 $0 $0 0 Construction: $1,886,000 $614,000 $0 $0 $2,500,000 FY Total- $2,566,0007- $614,000 $0 $0 $3,180,000 180 June 7, 2018 Regular Board Meeting Agenda Packet- Page 307 of 446 Page 189 of 264 Capital Improvement Program—CIB Treatment Plant Program Plant Control System 1/0 Replacement • id 1101 Mot Program: Treatment Plant Phase: Planning/Design Priority Rank: Critical Ranking Score: 65 Purpose: grucaL12=1 To upgrade obsolete PLC Input and Output(1/0) cards and Aging associated systems with current technology to maintain reliable Infrastructure Capacity operation and vendor support. Drivers: Regulatory Sustainability PLC 1/0 cards are critical for equipment and instrumentation communication to the treatment plant control system for process control and monitoring. The = _ •+q first treatment plant PLC I/O card was installed in the mid-1980s. The number of 1/0 cards in use has increased from only a few to nearly 1,800 cards. Approximately 1,100 of these 1/0 cards are currently obsolete. Replacement units cannot be purchased from the manufacturer, nor are they fully supported. Central San maintains an inventory of over 100 spare 1/0 cards to _ i reactively replace units as they fail. Description: This is a multi-phase effort to replace obsolete 1/0 cards and improve associated control system components. The following are major elements included in the project. • Replace obsolete 1/0 with modern Schneider X80 1/0 • Retrofit 1/0 communication including network cards and communication cabling • Provide uninterruptible power system (UPS)power to 1/0 panels • Upgrade field wiring and devices as necessary • Provide as-built documentation of the updated system Operating Department Impact and Funding Source: This project will have insignificant impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Miscellaneous Areas within the Treatment Plant BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $200,000 $0 $0 $0 $200,000 Design: $270,000 $0 $300,000 $0 $570,000 Construction: $0 $900,000 $833,000 $1,839,000 $3,572,000 YTotal: $470,000 $900,000 $1,133,000 $1,839,0007— $4,342,000 181 June 7, 2018 Regular Board Meeting Agenda Packet- Page 308 of 446 Page 190 of 264 Capital Improvement Program—CIB Treatment Plant Program Walnut Creek/Grason Creek Levee Rehab Project No. 734� Program: Treatment Plant Phase: Design Priority Rank: High Ranking Score: 40 Purpose: �Illlllllllll�roject Drivers To reduce the risk of flood damage to the treatment plant by raising levees through a project led by the Contra Costa County Flood Aging Capacity Control and Water Conservation District(FCD). Infrastructure 1 Drivers: Regulatory Sustainability The treatment plant site is bordered by Walnut and Grayson Creeks with levees that were built by the FCD and US Army Corps of Engineers, and currently owned and maintained by the FCD. Overtopping of the levees could catastrophically disable treatment plant operations, result in significant facility damage, negatively impact the environment due to discharge of untreated sewage, and impair the local iiiias economy. In 2007, the FCD implemented an interim flood control measure to desilt lower Walnut Creek channel and raise the western levees of Walnut and Grayson Creeks. Based on recent modeling, the levees currently provide protection from a 30-year storm. The current flood protection standard by the California Department of Water Resources is to provide protection against at least a 200-year storm with three feet of freeboard, consider for sea level rise, and climate change. Description: Due to the critical nature of the treatment plant facilities, the levees will be raised to provide a protection level of a 200-year to 500-year storm with adequate freeboard. The FCD will be the lead agency, and Central San will provide support for design review and construction coordination. Both agencies have agreed to equally share the estimated project cost of $2.2 million. Central San anticipates accepting and storing soil on buffer property that can be used as levee material to provide in-kind contributions of up to $500,000. Staff will continue to evaluate in-kind financial contributions. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Along the Walnut Creek and Grayson Creek Levees, Kiewit Buffer Property Project . . Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $100,000 $0 $0 $0 $100,000 in Design: $0 $0 $0 $0 Construction: $0 $0 $515,000 $515,000 $1,030,000 FY Total: $100,000 $0 $515,000 $515,000 $1,130,000 182 June 7, 2018 Regular Board Meeting Agenda Packet- Page 309 of 446 Page 191 of 264 Capital Improvement Program—CIB Treatment Plant Program Solids Handling Facilit Improvements Program: Treatment Plant Phase: Design Priority Rank: Critical Ranking Score: 75 Purpose: To rehabilitate and replace the sludge dewatering, sludge handling, sludge blending, ash handling, furnace air pollution control Aging—mCapacity equipment, and structural upgrades to the building housing this Infrastructure equipment. Drivers: Regulatory Sustainability The existing furnaces have significant remaining useful life; however, other solids equipment requires replacements. The centrifuges and cake pumps have been in service for over 25 years, are costly to maintain, and spare parts are difficult to obtain. Mixing improvements are recommended for the sludge blending/storage tanks for reliable dewatering. Ash handling equipment is in poor condition and upgrades are recommended to reliably meet ash regulatory requirements. A more efficient wet scrubber and other air pollution control improvements will be needed to reliably comply with current and future air regulations. The Solids Conditioning Building (SCB)that houses the furnaces, cogeneration unit, and other critical equipment does not meet current seismic standards and the building is close to the Concord Fault. Electrical and control systems associated with this equipment will need to be replaced during the project. Description: The following are major '' � 1 f elements included in the project: .,, • Replace wet scrubber with a new venturi scrubber capable of waste heat boiler bypass • Replace centrifuges, cake pumps, and sludge blending, storage, and mixing systems • Furnace burner upgrades, ash handling improvements to reduce fugitive ash li�W `�.J emissions and improve reliability and modify r emergency sludge loadout facility • Seismic improvements for the furnaces and SCB • Replace electrical and control systems to accommodate new equipment Operating Department Impact and Funding Source: This project will have significant impact(energy savings) on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Solids Conditioning Building Project Budapt Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total F Planning: $1,000,000 $0 $0 $0 $1,000,000 Z esign: $3,975,000 $5,715,000 $1,000,000 $0 $10,690,000 ction: $0 $0 $10,130,000 $60,280,000 $70,410,000 Total: $4,975,000 $5,715,000 X$11,130,000 $60,280,000 1 $82,100,000 183 June 7, 2018 Regular Board Meeting Agenda Packet- Page 310 of 446 Page 192 of 264 Capital Improvement Program—CIB Treatment Plant Program Energy Recovery and Blower Replacement Project Name Energy Recovery and Blower Upgrades Project No. 7349 Program: Treatment Plant Phase: Planning Priority Rank: Critical Ranking Score: 80 Purpose: 97UGM101=1 To replace and improve the existing steam system, waste heat W Aging recovery, steam turbines, and improve the secondary treatment Infrastructure Capacity systems related to aeration energy requirements. Drivers: Central San's energy recovery system uses waste heat Regulatory Sustainability from the incinerator and cogeneration turbine to produce steam primarily for aeration blowers and other systems. The existing aeration system is from the 1970s and is outdated, inefficient, experiences significant air leaks, and has limited turndown capabilities. The existing steam piping, valves, and related equipment require a detailed assessment. Although it is advantageous to recover waste heat for producing aeration, it also creates a complicated interconnection. Disruptions in solids and steam systems can impact reliability of the secondary process. Similarly, disruptions in blower operation can impact the boiler, steam system, and impacting solids emission controls. Description: Several major energy and aeration replacements and modifications are included: • Evaluate the condition of the existing steam generation, steam driven systems and turbine and more efficient options to produce power from our future waste heat recovery system; • Evaluate modifications to existing Aeration tanks and the activated sludge system, including the secondary clarifiers and the hydraulics; and • Determine impact from future related projects such as optimization for nutrient removal (BACWA Level 1) and the possible implementation and impact of a 20 million gallons per day recycled project that would produce high quality recycled water with very low/no ammonia and low total dissolved solids to feed the two local oil refineries. Operating Department Impact and Funding Source: Impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Pump and Blower Building, Solids Conditioning Building, Aeration Basins, Primary/Secondary Facilities, and Other Treatment Plant Areas BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Planning: $300,000 $1,200,000 $1,030,000 $0 7$6,7 Design: $0 $0 $2,683,000 $3,713,000 Construction: $0 $0 $0 $51,224,000 $51,224,000 FY Total: $300,000 $1,200,000 $3,713,000 $54,937,000 $60,150,000 184 June 7, 2018 Regular Board Meeting Agenda Packet- Page 311 of 446 Page 193 of 264 Capital Improvement Program—CIB Treatment Plant Program Mechanical and Concrete Renovations Project Name Mechanical . Concrete Renovations Project No. Program: Treatment Plant Phase: Design/Construction Priority Rank: Critical Ranking Score: 70 Purpose: _ To rehabilitate or replace gates and other mechanical equipment, and existing concrete structures with leaks or severe cracking. r lnfr Agructure Capacity Drivers: The gates, concrete, and other miscellaneous equipment and Regulatory Sustainability surfaces within the Headworks, Pre-Aeration, and Primary Treatment areas are exposed to corrosive environments. Slide gates throughout these areas are essential for being able to stop and re-direct flows as required for preventive maintenance of facilities and for emergency and wet weather scenarios. Many of the slide gates have unreliable actuators, show signs of corrosion, have deteriorating seals and wedges, and in some cases, have been inoperable. Additionally,there are some structures and concrete surfaces that have spalling concrete, corroded reinforcing bars, and show signs of significant cracking. Some concrete areas require coating to prevent further corrosion. This project is to address these aging infrastructure needs and improve the safety and reliability of existing systems. Description: Several major elements are included in this project: • Repair concrete for the West Gallery, Structure D, Primary Sedimentation Tanks, Primary Effluent Channel, Influent Structure, and Influent Structures 1 and IA • Replace or rehabilitate influent structure gates actuators, Influent Structure 1 and IA gates, Pre-Aeration gates, Primary Influent gates, and Primary Effluent Channel stop plate • Replace or rehabilitate existing polyvinyl chloride liner, 60-inch and 72-inch pipelines at Structure C, primary collector chain and flights, embedded rails, grit washers and piping, and primary scum piping and grinders Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Headworks, Pre-Aeration, and Primary Treatment Areas . . d& Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design. $600,000 $500,000 $0 $0 $1,100,000 Construction: $700,000 $2,500,000 $3,000,000 $0 $6,200,000 FY Total: $1,300,000 $3,000,000 $3,000,000 $0 $7,300,000 185 June 7, 2018 Regular Board Meeting Agenda Packet- Page 312 of 446 Page 194 of 264 Capital Improvement Program—CIB Treatment Plant Program UV Disinfection Upgrades 1=1 . . Program: Treatment Plant Phase: Construction Priority Rank: Critical Ranking Score: 65 Purpose: PL9ject Drivers To rehabilitate components of the UV disinfection system and Aging g Capacity improve reliability. Infrastructure Drivers: The UV system was constructed in the mid-1990s. The old Regulatory Sustainability denitrification tanks were re-purposed for constructing the UV channels and some piping modifications were completed to route secondary effluent to the UV system. The existing 1 UV technology is old, inefficient, and does not have the 1 same controls capabilities and automated cleaning capabilities as newer UV technology. The existing system requires significant cleaning and maintenance. The �I existing electrical connections are worn and in some cases, have failed. Until the existing UV system can be replaced, there are several improvements needed to improve the reliability of the existing disinfection system. A new system is planning to be installed in the next several years. :� y Description: Several major elements are included in the project: • Replace conduits and connectors between the ballasts and UV banks • Repair and replace components of the existing UV chemical cleaning system • Rehabilitate or replace the UV gates, actuators, stems, and seals • Investigate methods to reduce sunlight over UV channels Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): UV Disinfection Facility Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs r��Total tCon lanning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 truction: $0 $500,000 $300,000 $300,000 $1,100,000 Y Total: $0 $500,000 $300,000 $300,000 $1,100,000 186 June 7, 2018 Regular Board Meeting Agenda Packet- Page 313 of 446 Page 195 of 264 Capital Improvement Program—CIB Treatment Plant Program Outfall Im rovements — Phase 7 Program: Treatment Plant 60 Phase Planning Priority Rank: I Critical Ranking Score: 65 Purpose: To inspect the land and submarine portions of the Outfall pipeline to maintain the pipeline or repair and meet regulatory requirements. Aging Infrastructure Capacity Drivers: Central San's National Pollutant Discharge Elimination System Regulatory Sustainability Permit requires proper operation and maintenance of the Outfall pipeline that discharges treated final effluent to Suisun Bay. Every five to ten years, the 3.5 mile, 72-inch reinforced concrete Outfall pipeline built in 1958 is drained and inspected to verify pipeline alignment and condition of the pipeline and seals. As part of the last 2012 Outfall Improvements Project, over 1,500 pipe joints were - inspected, and 368 joints were repaired with new seals. Of the 1,500 joints, approximately 950 have been replaced. 9 During the project, final effluent is routed to the Wet Weather Holding Basins and temporarily discharged for several weeks through the overflow weir structure to Walnut Creek in accordance with permit requirements. Description: The last inspection of the Outfall was in 2013 and is due for a new inspection. This project will include many elements as completed during the previous phase: • Coordinate inspection and temporary bypass approval with the Regional Water Quality Control Board (RWQCB), and obtain all other necessary permits • Test the land portion of the Outfall and install new joint seals as necessary • Repair access manholes and inclinometers, and update pipeline survey data • Modify 9,000 structure/final effluent facilities as required for future Filter Plant work Operating Department Impact and Funding Source: The impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Treatment Plant, Martinez, Suisun Bay BudgetProiect Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs JM=Total J lanning: $0 $200,000 $0 $0 $200,000 Design: $0 $200,000 $240,000 $0 $440,000 truction: $0 $0 $2,000,000 $1,812,000 $3,812,000 Y Total: $0 $400,000 $2,240,000 $1,812,000 $4,452,000 187 June 7, 2018 Regular Board Meeting Agenda Packet- Page 314 of 446 Page 196 of 264 Capital Improvement Program—CIB Treatment Plant Program Treatment Plant Security Improvements ImprovementsProject Name Treatment Plant Security Program: Treatment Plant Phase: Design Priority Rank: I Very High Ranking Score: 1 60 Purpose: Project To improve physical security at the treatment plant and to protect Aging Capacity existing critical assets. Infrastructure Drivers: In addition to worker safety, there are many critical assets that Regulatory Sustainability require physical security improvements to minimize risk. In FY 2016-17, a comprehensive security study was completed for major Central San facilities that utilized the principles of American Water Works Association J100 Risk Analysis and Management for Critical Asset Protection methodology(RAMCAP® J100). RAMCAP® J100 is a comprehensive approach that enables the estimation of = relative risks across multiple assets while considering both malevolent and natural hazards. The RAMCAP® JI00 method is a 7-step process including: 1) Asset Characterization; 2) Threat Characterization; 3) L ' Consequence Analysis; 4) Vulnerability Analysis; 5) Threat Analysis; 6) Risk Analysis; and 7) Risk Management. Description: Findings from this study related to the treatment plant will be implemented under this project. Some improvements may be implemented in collaboration with the pumping station and general security improvement projects that were also identified under the same study. In general, recommendations include: • Increased surveillance and intrusion detection • Access control improvements • Perimeter fencing repair and increased signage • Other miscellaneous security improvements Operating Department Impact and Funding Source: The impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Treatment Plant BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs A Total Planning: $0 $0 $0 $0 $0 Design: $87,000 $50,000 $200,000 $0 $337,000 Construction: $0 $0 $588,000 $915,000 $1,503,000 FY Total: IlU $87,000 $50,000 $788,000 $915,000 $1,840,000 188 June 7, 2018 Regular Board Meeting Agenda Packet- Page 315 of 446 Page 197 of 264 Capital Improvement Program—CIB Treatment Plant Program Odor Control Upgrades — Phase 1 Project Name Odor Control Upgrades—Phase 1 Project No. 7355 Program: Treatment Plant Phase: Planning Priority Rank: Very High Ranking Score: 60 Purpose: To replace existing odor control systems for the Solids Conditioning Pr Aging Capacity Building (SCB), Headworks, Pre-Aeration tanks, and Primary Infrastructure P y Effluent Channel. Drivers: Regulatory Sustainability Central San's Odor Control Facilities Plan was last updated in 2006. The update was based on an established odor threshold of 20 dilutions to threshold. To meet this _ threshold goal at the treatment plant and to address aging equipment,upgrades are recommended to the SCB, Headworks, and Pre-Aeration Odor Control Units. The existing odor control systems use outdated technology with corrosive sodium hypochlorite systems. The odor control towers, piping, panels, ductwork, and fans are experiencing significant wear and require replacement. In - -�L addition, nearby surfaces such as concrete pads on building roofs are experiencing significant corrosion. Alternative odor control technologies will be considered that do not use sodium hypochlorite and will minimize visible misting. Description: The following are major elements included in the project: • Update the Odor Control Facilities Plan and confirm odor control threshold requirements for design • Replace the Pre-Aeration Odor Control Unit, ductwork, panels, and piping • Replace the Headworks Odor Control Unit, ductwork, panels, and piping • Replace the SCB Odor Control Unit, ductwork,panels, and piping Operating Department Impact and Funding Source: The impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Headworks, Pre-Aeration, Primary Effluent Channel ProjecfTudget Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $44,000 $109,000 $0 $0 $153,000 Design: $0 $91,000 $289,000 $250,000 $630,000 Construction: $0 $0 $535,000 $2,685,000 $3,220,000 FY Total: $44,000 $200,000 r $824,000 $2,935,000 $4,003,000 189 June 7, 2018 Regular Board Meeting Agenda Packet- Page 316 of 446 Page 198 of 264 Capital Improvement Program—CIB Treatment Plant Program Plant-Wide Instrumentation Upgrades Program: Treatment Plant Phase: Planning Priority Rank: Very High Ranking Score: 60 Purpose: - ' " ' To install new instrumentation for improved monitoring, control, Aging Capacity and optimization of Central San facilities. Infrastructure Drivers: Regulatory Sustainability Collection and data leveraging is becoming increasingly useful for wastewater operations, design, and optimization. As Central San considers future equipment upgrades, potential nutrient removal and solids handling technologies, it is important to collect data that will be useful for the evaluation and design of those facilities. There are also return streams that Central San has limited data for but could be helpful when evaluating future needs. In the meantime, there are opportunities to optimize existing processes and possibly reduce operations and maintenance costs; however, key instruments are required to evaluate these opportunities. Energy management and efficiency measures are crucial — elements when striving towards net zero energy. Power meters installed at the Motor Control Centers and key = equipment can be useful for identifying optimization opportunities. The concept of"Big Data" is becoming increasingly popular and is aimed at leveraging data to analyze trends to predict how a given process will perform in the future and proactively make adjustments. Description: The following elements are included in the project: • Develop instrumentation upgrades strategy and phasing plan • Install flow meters for improved monitoring of return streams • Install power meters for Motor Control Centers and key equipment • Install air flow meters for tracking channel aeration demands • Install other miscellaneous instruments for improved process monitoring, control, and optimization Operating Department Impact and Funding Source: The impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Treatment Plant Project Budget -�--M El Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $100,000 $0 $0 $0 $100,000 LAU Design- $0 $190,000 $0 $0 $190,000 Construction: $0 $0 $515,000 $1,236,000 $1,751,000 AIIIIIIIIIII FY Total: $100,000 $190,000 $515,000 $1,236,000 $2,041,000 190 June 7, 2018 Regular Board Meeting Agenda Packet- Page 317 of 446 Page 199 of 264 Capital Improvement Program—CIB Treatment Plant Program Innovative Renewable EnergyPro'ect OL . . Program: Treatment Plant Phase: Planning Priority Rank: I Critical Ranking Score: 65 Purpose: To evaluate implementation of renewable energy projects at Central Aging Capacity San's treatment plant. Infrastructure Drivers: Regulatory Sustainability Assembly Bill (AB) 32, California's landmark greenhouse gas (GHG) reduction legislation imposed a 25,000-metric ton of � carbon dioxide equivalent trigger for participation in the GHG - f Cap and Trade Program. As a result, Central San has modified its operation to maintain treatment plant anthropogenic (fossil-fuel derived) GHG emissions under that trigger. In some years, this has required shutdown of the Cogeneration Facility (Cogen), resulting in increased purchase of grid power, higher Pacific Gas and Electric demand charges, and loss of resiliency provided by onsite power. A renewable energy project, sized to meet Central San's base electrical demand(-2.8 megawatts), could allow Central San to take Cogen offline, which would reduce purchases and onsite combustion of natural gas, reduce Central San's emission of regulated GHGs, and enable Central San to achieve its renewable energy goals. Description: This project will provide the planning-phase funds to complete an evaluation of how a renewable energy project would interconnect with the existing power supply system in the treatment plant and how the treatment plant's energy management system would need to be reconfigured. Evaluation and development of a renewable energy procurement (under traditional and alternative delivery methods) may also be included. Operating Department Impact and Funding Source: The impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues and O&M. Location(s): Treatment Plant Site a 7 . . 1W Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs IN Planning: $300,000 $0 $100,000 $200,*$0 $600,000 JDesign: $0 r $0 $0 truction: I $0 $0 $0 $0 FY Total: $300,000 $0 $100,000 $200,000 $600,000 191 June 7, 2018 Regular Board Meeting Agenda Packet- Page 318 of 446 Page 200 of 264 Capital Improvement Program—CIB Treatment Plant Program Solids Conditioning Building Roof Replacement Project Name SC13 Roof Replacement Project No. 7359 Program: Treatment Plant Phase: Construction Priority Rank: Critical Ranking Score: 70 Purpose: _a Project Drivers To replace the roof of the Solids Conditioning Building. Aging Capacity Drivers: Infrastructure Over the last 10 years, several repairs have been made to the roof to extend its useful life. Temporary measures have been implemented Regulatory Sustainability to protect the electrical equipment from water damage; however, the roof is in poor condition and a roof replacement is recommended as the long-term solution. `A In January 2017, Central San experienced significant rainfall. 'r During these wet weather conditions, several roof leaks were identified at the SCB. Some of the leakage is over critical electrical equipment. Failure of this equipment could result inr , significant disruptions to operations as well as create safety hazards. There are also several other critical assets in this .� building, including one (1) of the two (2)treatment plant control rooms. Description: A The roof will be replaced for the SCB and engineered fall protection system will be installed. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Solids Conditioning Building Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $150,000 $0 $0 $0 $150,000 Construction: $350,000 $800,0001 $0 $0 $1,150,000 JIII FY Total: $500,000 $800,000 $0 $0 $1,300,000 192 June 7, 2018 Regular Board Meeting Agenda Packet- Page 319 of 446 Page 201 of 264 Capital Improvement Program—CIB Treatment Plant Program WPriority Facilities As-Is Drawings . i Program: Treatment Plant Phase: Construction Rank: I N/A Ranking Score: N/A Purpose: 97UGU12=1 To develop as-is drawings in electronic computer-aided design Aging Capacity (CAD) format for existing facilities. Infrastructure Drivers: Regulatory Sustainability Central San has limited as-built drawings for existing facilities, particularly facilities that were constructed over 40 years ago. Additionally, there are some facilities that have hard copy as-built drawings but are not in CAD format. Most of Central San's facilities are over 40 years old. As � these existing facilities require rehabilitation or a" replacement, it will be important to have as-is CAD drawings for implementation of capital improvement .2 projects. Additionally, it is important from an operations and resiliency standpoint to have as-is conditions documented and readily available for addressing potential urgent improvements. Description: Compile available past project information,perform field investigations as required, and develop as-is CAD drawings for existing facilities. Currently, the focus for as-is drawings will be electrical facilities and treatment plant process areas where improvements are anticipated within the next five years. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Treatment Plant . . MMME Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total lanning: $0 $0 $0 $0 $0 Li_mi�Design: $0 $0 Construction: 1 $100,000 $100,000 $103,0001 $51,500 $354,500 �FY Total: =100,000 $103,000 $51,500 T$354,500 193 June 7, 2018 Regular Board Meeting Agenda Packet- Page 320 of 446 Page 202 of 264 Capital Improvement Program—CIB Treatment Plant Program Plant Operations Building POB Seismic Upgrades Project Name - • : Seismic Upgrades Program: Treatment Plant Phase: Design Priority Rank: Critical Ranking Score: 75 Purpose: Project Improve the seismic safety of the Plant Operations Building (POB). Aging Infrastructure Capacity Drivers: In January 2008, the State of California adopted the 2007 California Building Code (2007 CBC). Among the updates in the 2007 CBC Regulatory Sustainability were significant changes to seismic design. In 2009, a seismic evaluation was completed for the treatment plant facilities (Martinez Wastewater Treatment Plant Seismic Vulnerability Assessment of Selected Facilities, December 2009). Included in the evaluation were recommendations to bring the POB up to date with current seismic design standards. The POB houses staff for the Plant Operations and Plant Maintenance Divisions, the main Control Room, Control System servers, Board Room, and Multi-Purpose Room(MPR)which also serves as an Emergency Operations Center. The MPR is located within POB and is frequently used by the public. Central San has plans to construct security improvements to the MPR. This would involve reconfiguring the space and modifying the existing restrooms to improve public access and meet Americans with Disabilities Act(ADA) of 1990. Due to the construction, some of the work spaces may require some modifications. Any floorplan modifications will be done in a cost-effective manner. Description: POB seismic improvements will be made to meet the Damage Control Performance Level. Work will take place in the basement, main level, and roof which will include: • Column strengthening by carbon fiber wrapping • Addition of steel braces • Installation of new steel collector beams • MPR enhancements to provide ADA compliant restrooms, and improve treatment plant security and access Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Plant Operations Building Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $ $$0 $0 Design: $400,000 $0 $0 $0 $400,000 Construction: $0 $1,100,000 $1,030,000 $0 $2,130,000 FY Total: $400,000 $1,100,000 $1,030,000 $0 $2,530,000 194 June 7, 2018 Regular Board Meeting Agenda Packet- Page 321 of 446 Page 203 of 264 Capital Improvement Program—CIB Treatment Plant Program Treatment Plant Planning Program: Treatment Plant Phase Planning Priority Rank Critical Ranking Score 85 Purpose: To complete technical evaluations to address regulatory drivers, POF Aging EM assess aging infrastructure, evaluate capacity requirements, and Infrastructure Capacity investigate opportunities to optimize operation of existing facilities. Drivers: Regulatory Sustainability As wastewater regulations develop and new treatment technologies become available, process modifications may be needed. This project includes technical evaluations to address regulatory initiatives and maintain permit compliance (e.g. Suisun Bay nutrient modeling work and NPDES required studies and reports). As flows and contaminant loads and concentrations change, capacity evaluations are needed to confirm capacity ratings of existing facilities and to identify any potential capacity `* improvements required to manage dry weather and wet weather { flows and loads. Technical evaluations are completed to support =" treatment plant operations by evaluating optimization opportunities to improve the reliability and performance of existing treatment plant processes and facilities. A Description: The following are major elements included in the project: • Investigate and optimize performance of existing secondary treatment facilities • Support and evaluate Bay Area Clean Water Agencies (BACWA)Nutrient Watershed Permit technical evaluations • Evaluate renewable energy opportunities for the treatment plant to reduce imported fuels and greenhouse gas emissions Operating Department Impact and Funding Source: The impacts to operational budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Treatment Plant miaza Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $450,000 $450,000 $566,500 $1,133,000 $2,599,500 JL Design: $0 $0 $0 Construction: $0 $0 $0 $0 $0 YTotal: $450,000 $450,000 $566,500 $1,133,000 $2,599,500 195 June 7, 2018 Regular Board Meeting Agenda Packet- Page 322 of 446 Page 204 of 264 Capital Improvement Program—CIB Treatment Plant Program Treatment Plant (TP) Safety Enhancement - Phase 5 .- Program: Treatment Plant Phase: Construction Priority Rank: I Very High Ranking Score: 60 Purpose: Project Drivers To enhance treatment plant safety through identification of safety Aging Capacity concerns,repairs, and capital improvements. Infrastructure Drivers: Regulatory Sustainability Central San and the treatment plant have proactive safety programs that are administered by separate committees. These committees are responsible for addressing safety concerns at the treatment plant as identified by staff and to respond to regulatory requirements. Often this response will require construction of a capital project. The first three phases of this project addressed various safety repairs and improvements. Description: The project will include treatment plant facility improvements for safety, including a second emergency exit stairway for the control room in the Solids _ -- Conditioning Building. In addition, the project will be coordinated with safety improvements identified in the General Improvements Program and the costs will be assigned to their respective program. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Treatment Plant BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 $0 Construction: $0 $100,000 $100,000 $0 $200,000 FY Total: $0 $100,000 $100,000 $0 $200,000 196 June 7, 2018 Regular Board Meeting Agenda Packet- Page 323 of 446 Page 205 of 264 Capital Improvements Program—CIB General Improvements Program CIB — General Improvements Program The General Improvements Program is primarily concerned with property, administrative buildings, management information systems including information technologies, asset management, and new equipment and vehicle needs as described in more detail below: • Vehicle Replacement Program - The CIB includes a yearly allowance for the vehicle replacement budget. Specific vehicles are replaced each year as approved through the annual budget process. • Equipment Acquisition- The Equipment Acquisition project comprises the items budgeted and purchased similar to the Vehicle Replacement Program, which is included in this document. The CIB includes an allowance for the equipment budget. Specific equipment items are approved through the annual budget process. • Management Information Systems - The Management Information Systems subprogram reflects the importance of IT in the daily operation of Central San. Central San has developed an IT Master Plan that envisions implementing specific improvements and extends several years into the future. An allowance to meet anticipated future information technology needs has been included in the Ten-Year Capital Improvement Plan. Funding for upgrades of Central San's Geographic Data Integration systems and Enterprise Resource Planning software platform are included in the CIB. • General Projects -This includes improvements to the Headquarters Office Building (HOB), Collection System Operations Building and other properties, CIB legal expenses, easement and right- of-way acquisition, and projects related to District property improvements. • Asset Management- Central San has invested significant resources in its assets, and the purpose of the Asset Management Program,which includes Treatment Plant, Collection System, General Improvements, and Recycled Water assets, is to optimize the lifecycle of these assets to deliver high quality and reliable services in a sustainable manner for customers with an acceptable level of risk. Project Example of project drivers) Each project is described on the following pages. Each project Aging summary includes project name, description,prioritization, purpose, Infrastructure Capacity operating department impact and funding source, location, budgetary information and drivers (i.e.; what is the main impetus for a project). The main driver(s) for each project is (are) identified by Regulatory Sustainabili highlighting in orange background color and bold text. Driver(s) that is (are) not as significant or not relevant is (are) displayed in gray. 197 June 7, 2018 Regular Board Meeting Agenda Packet- Page 324 of 446 Page 206 of 264 Capital Improvement Program-CIB General Improvements Program All projects in the General Improvements Program are summarized; including all past, current, and planned budgets required to complete each project as shown on the following Table 4: CIB Table 4 - FY 2018-19 General Improvements Program Budget/Project Summary Project Project Budget-to- FY i i Future FYs Total Project Number .. 8207 General Security and Access $194,616 $500,000 $103,000 $103,000 $900,616 Geographic Data Integration (GDI) 8227 Treatment Plant $425,000 $0 $0 $0 $425,000 8230 Capital Legal Services $158,665 $20,000 $20,600 $41,200 $240,465 8236 District Easement Acquisition $208,047 $50,000 $51,500 $103,000 $412,547 Asset Management Program 8238 Development $2,969,185 $400,000 $0 $0 $3,369,185 Information Technology(IT) 8240 Development $2,148,794 $1,750,000 $2,420,500 $1,005,500 $7,324,794 8243 Server Room Relocation $955,430 $880,000 $0 $0 $1,835,430 8247 Property and Building Improvements $400,000 $300,000 $257,500 $1,030,000 $1,987,500 8248 lCyber Security $75,000 $0 1 $103,000 $309,000 $487,000 8516 Equipment Acquisition $676,000 $200,000 $206,000 $1,030,000 $2,112,000 8517 Vehicle Replacement Program $1,199,000 $650,000 $772,500 $3,862,500 $6,484,000 ONEFTotal Program $9,409,737 $4,7 $3,9 $25,578,537 198 June 7, 2018 Regular Board Meeting Agenda Packet- Page 325 of 446 Page 207 of 264 Capital Improvements Program—CIB General Improvements Program General Security and Access W111111111, pffifflffll�� Program: General improvements Phase: Planning/Design Priority Rank: Very High Ranking Score: 60 Purpose: AW. Project Drivers To improve safety for employees and the public, meet safety standards, reduce exposure to liability,reduce property loss, and Aging Capacity reduce operations and maintenance expenses. Infrastructure Drivers: Regulatory Sustainability Security system improvements are routinely identified and refined. Additional security measures for essential public service facilities are required. In 2016, a comprehensive security study was completed for major facilities that utilized the principles of AWWA J100 Risk Analysis and Management for Critical Asset Protection methodology. RAMPCAP J100 is a comprehensive approach that enables the estimation of relative risks across multiple assets while considering malevolent and natural hazards. _ 7 -— Description: Findings from this study that are applicable to non- treatment plant facilities and properties will be implemented under this project. Improvements include: • Installing security upgrades to the Headquarters Office Building's Lobby to secure the area and clearly identify the public use of the building. The restrooms previously used by the public will no longer be accessible after the security work is complete. Modifications to the lobby are needed to provide a public restroom and provide for business accommodations. Cameras for surveillance, alarm system upgrades for intrusion, and associated systems will be provided. • Access control improvements and additional card readers,perimeter fencing repair and gates • Increased signage, improved lighting, and other miscellaneous security system improvements Operating Department Impact and Funding Source: Impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Locatiorl Central San-wide Projecfffudget Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 $0 Construction: $194,616 $500,000 $103,000 $103,000 $900,616 FY Total: $194,616 $500,000 $103,000 $103,000 $900,616 199 June 7, 2018 Regular Board Meeting Agenda Packet- Page 326 of 446 Page 208 of 264 Capital Improvements Program—CIB General Improvements Program Geographic Data Integration Treatment Plant Project Name GDI Treatment Plant Project No. 8227 Program: Generallmprovements Phase: Planning Priority Rank: Critical Ranking Score: 65 Purpose: Project Drivers To support the Asset Management Program by providing an Aging o_ Infrastructure Capacity effective means of accessing treatment plant asset data through an interactive map linked to multiple datasets. Drivers: Regulatory Sustainability After successful implementation of the collection system Geographic Data Integration, it was determined that a similar web interface for the treatment plant would 1' I S provide efficient access to asset drawings and data. ;t{ i'L A pilot treatment plant GDI was developed and is titti .L, r currently used by staff. Description: The following major tasks are included in the project: • Implement a geographically based asset management tool for the treatment planta • Work with staff to optimize interface and functionality for accessing asset data f • Organize and gather asset data and link to treatment , plant GDI Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Treatment Plant BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 $0 Construction: $425,000 $0 $0 $0 $425,000 FY Total: $425,000 $0 $0 $0 $425,000 200 June 7, 2018 Regular Board Meeting Agenda Packet- Page 327 of 446 Page 209 of 264 Capital Improvements Program—CIB General Improvements Program Ca ital Le al Services L Project Name Capital Legal Services Project No. E1230 Program: General Improvements Phase: Planning Priority Rank: N/A Ranking Score: N/A Purpose: To streamline the processing of legal bills. Aging Capacity Drivers: Infrastructure In the past, legal expenses were charged to individual capital projects. This process required extra staff time Regulatory Sustainability each month to review legal bills and get approvals from several different project managers. Description: -- Capital legal service expenses are no longer charged to individual capital projects. The processing of legal bills has _ been streamlined by charging legal expenses to one capital _=_ account with four charge numbers for the four programs. This reduces the amount of time all parties must spend processing the legal bill. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Locatiorl Central San-wide BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Planning: $158,665 $20,000 $20,600 $41,200 $240,465 Design: $0 �$0 $0 Construction: $0 $0 $0 $0 $0 FY Total: $158,665 $20,000 f $20,600 $41,200 201 June 7, 2018 Regular Board Meeting Agenda Packet- Page 328 of 446 Page 210 of 264 Capital Improvements Program—CIB General Improvements Program District Easement Ac uisition 1 . II Program: General improvements Phase: j Planning Priority Rank: Critical Ranking Score: 1 65 Purpose: Project To improve or acquire new property land rights for existing or new Infr Agingture Capacity sanitary sewers that are located on private properties and are not associated with a current capital project for sewer renovation work. Regulatory Sustainability Drivers: As capital projects are designed, sanitary sewer easements may have to be acquired for those specific projects. This project provides funds for the acquisition of easements for projects where specific funds are not identified within the sewer renovation capital improvement projects in the CIB. lit Central San is currently evaluating and updating the status of the existing capitalized easement, perfecting easements, '. and right-of-ways. Description: Examples of easements that may be acquired through this project include: • Easements for existing sewers where no easements currently exist • Easements for sewers relocated through other public agency projects • Upgraded easements or access rights for existing sewers • Upgraded easements for Central San's Outfall pipeline • Easements for recycled water distribution pipelines Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Central San-wide BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 Construction: $208,047 $50,000 $51,500 $103,000 $412,547 AJWFY Total: j $208,047 j $50,000 1 51,500 1 $103,000 1 $412,547 202 June 7, 2018 Regular Board Meeting Agenda Packet- Page 329 of 446 Page 211 of 264 Capital Improvements Program—CIB General Improvements Program Asset Mana Iement Pro I ram Develo 9 ment Program: General improvements Phase: Construction Priority Rank: Critical Ranking Score: 70 Purpose: - To develop a comprehensive Asset Management Program that Aging optimizes the lifecycle of Central San assets and delivers high Infrastructure Capacity quality and reliable services in a sustainable manner for customers with an acceptable level of risk. Regulatory Sustainability Drivers: In FY 2014-15, an implementation plan and Board Dashboard Policy No. 15 were adopted regarding asset management. �CSO " The Asset Management Implementation Plan Summary Report was published in March 2015. The elements identified were assigned by staff to existing projects where applicable, included in maintenance efforts as continuous improvement tasks, and the remaining elements completed under this project. - -_~ .- Description: Implementation will require the following: • Complete implementation of new CityWorks computerized maintenance management system (CMMS) and improve functionality during roll-out • Continued coordination and update of standard operating procedures, Operation&Maintenance (O&M) manuals, shop, drawings, and other reports • Drafting to consolidate treatment plant as-built drawings and information • Consolidate CCTV databases and update Asset Management Plan • Utility locating and condition assessments of critical treatment plant piping • Develop and implement the Program Management Information System(PMIS)based on eBuilder Operating Department Impact and Funding Source: This project will have an insignificant impact on the operating budgets. Project expenditures are funded from Capital Revenues. Locatioll Central San-wide Project Budget-, s Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $1,189,185 $0 $0 $0 $1,189,185 Design: $0 $0 $0 $0 AE_$0 Construction: $1,780,000 $400,000 $0 $0 $2,180,000 FY Total: $2,969,185 $400,000 $0 $0 $3,369,185 203 June 7, 2018 Regular Board Meeting Agenda Packet- Page 330 of 446 Page 212 of 264 Capital Improvements Program—CIB General Improvements Program Information Techno ogyIT Deve lo ment Program: Jenerallmprovements Phase: Construction Priority Rank: I Critical Ranking Score: 70 Purpose: _ To replace and upgrade Information Technology infrastructure and software as needed. Infrastructure Capacity Drivers: An Information Technology Development Plan was developed to Regulatory Sustainability centralize efforts and funding in the development of computer and telecommunication technology within Central San. Central San budgets IT on an annual basis. The IT Master Plan was approved in 2015 and its implementation is within the Capital Improvement Budget and the Ten-Year Capital Improvement Plan. Description: This project is the implementation of the IT Master Plan which includes the following major elements: • New Enterprise Resource Planning System • Network infrastructure upgrades • Disaster recovery/business continuity - • Cloud based technology improvements • Business application suite improvements • Increasing mobile presence • Desktop technology refreshment • Web redesign and enhancement Operating Department Impact and Funding Source: The impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Central San-wide Budget Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0I Design: $0 $0 $0 $0 $0I Construction: $2,148,794 $1,750,000 $2,420,500 $1,005,500 $7,324,794 FY Total: $2,148,794 $1,750,000 $2,420,500 $1,005,500 $7,324,794 204 June 7, 2018 Regular Board Meeting Agenda Packet- Page 331 of 446 Page 213 of 264 Capital Improvements Program—CIB General Improvements Program Server Room Relocation Program: seneral Improvements Phase: Construction Priority Rank: I Critical Ranking Score: 65 Purpose: To relocate all servers, network, and other related computer Aging Capacity equipment from its current location in the Plant Operations Building Infrastructure p y (POB)basement to the first level. Drivers: Regulatory Sustainability The server and equipment in the POB basement is critical for day-to-day Central San operations, customer service, — communication, and data management. — 4 This project was initiated after a major IT server failure at the main network facility in the POB basement. The existing server room is a decommissioned laboratory room which is vulnerable to failures of nearby water and wastewater process pipelines. Several alternatives for relocation of the server room to a more reliable and resilient location were evaluated, and a new server room attached to the existing POB has been designed. Description: The following are major elements included in the project: • Relocation of server, network, and related computer equipment to a new Central San server room that will be integrated with the POB facility • Re-routing of communication cabling and conduits to the new facility • Professional migration of existing equipment Operating Department Impact and Funding Source: This project will have an insignificant impact on the operating budgets. Project expenditures are funded from Capital Revenues. Locatioll Treatment Plant BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total JConstruction: lanning: $85,000 $0 $0 $0 $85,000 Design: $250,000 $ $0 $0 $620,430 $880,000 $0 $0 $1,500,430 Y Total: 955,430 $880,000 $0 $0 $1,835,430 205 June 7, 2018 Regular Board Meeting Agenda Packet- Page 332 of 446 Page 214 of 264 Capital Improvements Program—CIB General Improvements Program Property and Building Improvements ImprovementsProject Name Property and Building Program: General improvements Phase: Design/Construction Priority Rank: I Critical Ranking Score: 65 Purpose: Protect and enhance Central San's property through needed building Agin improvements and replacement work. Rnfrastrucg ture Capacity Drivers: Central San owns various properties surrounding the treatment plant Regulatory Sustainability that require occasional additions, improvements, and replacements, including the Imhoff Triangle, the Kiewit parcel, 4849 Imhoff Place, 4737 Imhoff Place, and others. The Kiewit parcel has served as a buffer zone for the treatment plant. - The Imhoff properties also serve as a buffer between the treatment plant and nearby neighborhoods. The Imhoff -- properities are also used as rental property and to house _ Central San work groups and equipment. Central San also _ t' owns several buildings on its treatment plant site in addition to the Collection System Operations Building - and Vehicle Maintenance Shop that house additional staff r and equipment. Description: This project will fund needed improvements to Central San's buildings,buffer properties, rental properties, and the surrounding parking lots and grounds. The project may be combined with other security and similar work in other capital projects. A near-term improvement project includes 4737 Imhoff Place which is a commercial building partially used by Central San with the remaining space rented to businesses. The building requires a comprehensive evaluation to determine the best alternatives to meet Central San's operational needs and Contra Costa County's ADA requirements. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Central San-wide Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $50,000 $0 $0 $0 $50,000 Design: $150,000 $0 $0 $0 $150,000 Construction: $200,000 $300,000 $257,500 $1,030,000 $1,787,500 FY Total: $400,000 $300,000 $257,500 $1,030,000 $1,987,500 206 June 7, 2018 Regular Board Meeting Agenda Packet- Page 333 of 446 Page 215 of 264 Capital Improvements Program—CIB General Improvements Program Cyber Security Project Name Cyber Security Project No. 8248 Program.] General improvements Phase: Construction Priority Rank: I Critical Ranking Score: 65 Purpose: To assess cyber security threats and make annual improvements to Aging cyber security controls. Infrastructure Capacity Drivers: Cyber security is the top threat facing business and critical Regulatory Sustainability infrastructure in the United States, according to reports and testimony from the Director of National Intelligence, the Federal Bureau of Investigation, and the Department of Homeland { Security (Source: American Water Works Association). Within the last two decades, cyber security threats, including cyber terrorism, have grown to a problem of concern. It is important that Central San maintains a robust cyber security system to L prevent against cyber terrorism. Cyber security improvements will be required to enhance the security and resiliencey of critical information technology infrastructure,protect Central San data and critical systems by deploying and maintaining appropriate security controls, and to promote security awareness among Central San employees. Description: This is an annual program that will assess cyber security threats and implement improvements to cyber security as necessary. Operating Department Impact and Funding Source: The impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Locatioll Central San-wide BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 $0 $0 $0 Construction: $75,000 $0 $103,000 $309,000 $487,000 FY Total: $75,000 $0 $103,000 $309,000 $487,000 207 June 7, 2018 Regular Board Meeting Agenda Packet- Page 334 of 446 Page 216 of 264 Capital Improvements Program—CIB General Improvements Program E ui ment Acquisition EquipmentProject Name . Program: I General Improvements Phase: Construction Priority Rank: I Very High Ranking Score: 55 Purpose: To provide new, safe, and cost-effective equipment for operations and maintenance of Central San facilities. Infrastructure Capacity Drivers: This project is developed as a multi-year program to procure new Regulatory Sustainability equipment required for operations and maintenance of assets throughout Central San. Description: This project is a multi-year program to procure new equipment such as: • Power Quality and Energy Analyzer ' ,-~ • Circuit Breaker and Overload Test Set • Electric Cart and Shuttle • Color Scope Meter Portable Oscilloscope • Self-Priming Pump with Highway Trailer • Self-Priming Pump • Portable Generator Set • Pump Trailer Mounted Package Operating Department Impact and Funding Source: This project will have an insignificant impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Central San-wide Proiect Budoet Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYsTotal Planning: $0 $0 $0 $0 $0 Design: aso $0 M $0 Construction: $676,000 $200,000 $206,000 $1,030,000 $2,112,000 FY Total: $676,000 $200,000 $206,000 $1,030,000 $2,112,000 208 June 7, 2018 Regular Board Meeting Agenda Packet- Page 335 of 446 Page 217 of 264 Capital Improvements Program—CIB General Improvements Program Vehicle Replacement Pro Iram 54 UFM . . Program: 3eneralImprovements Phase: Construction Priority Rank: I Very High Ranking Score: 55 Purpose: _ Provide safe and cost-effective vehicle replacement. Aging Capacity Drivers: Infrastructure Central San will budget and acquire vehicles under this Regulatory Sustainability project and use asset management principles and historic replacement costs to provide an effective vehicle replacement strategy. Staff, comprised of Engineering and Operations, has forecasted approximately $7.4 million in vehicle replacement from FY 2016-2026. A yearly budget (average costs in FY 2016-2026 plan)will be used to fund the project. Underspending in a year will result in a carryforward to future years. This approach will also -� recognize that due to long lead times, especially on 7i specialized vehicles, the budget for this program can carry y forward to the next fiscal year when delivery takes place. _ J! Description: The following vehicles are scheduled in FY 2018-19: • Tractor with Drag Box, Loader with Rotary Cuter _.., • Truck Mounted Sewer Rodder • Three Quarter-Ton 4x2 Van • Half-Ton 4x4 Truck(3 Quantity) • Dump Truck • 4-Door Hybrid Passenger Car • Midsize 4x4 Truck Operating Department Impact and Funding Source: This project will not have an impact on operating budgets. Project expenditures are funded from Capital Revenues. Locatioll Central San-wide Project Buet . . Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 0 $0 Construction: $1,199,000 $650,000 $772,500 $3,862,500 $6,484,000 FY Total: $1,199,000 $650,000 $772,500 $3,862,500 $6,484,000 209 June 7, 2018 Regular Board Meeting Agenda Packet- Page 336 of 446 Page 218 of 264 Page Intentionally Blank 210 June 7, 2018 Regular Board Meeting Agenda Packet- Page 337 of 446 Page 219 of 264 Capital Improvement Program—CIB Recycled Water Program CIB — Recycled Water Program Central San provides landscape irrigation water that meets all the requirements of the State Water Resources Control Board's Division of Drinking Water and the San Francisco Regional Water Quality Control Board for unrestricted landscape irrigation. Approved uses include irrigation at schools,parks, playgrounds, median strips and playing fields, as well as dust control and industrial process uses. Recycling water means less water is diverted from the Delta environment. Recycled water is a valuable resource, especially during drought years when water for landscape irrigation is less available because of water rationing. In 1996 Central San and the Contra Costa Water District (CCWD)reached an agreement allowing Central San to supply recycled water to specific areas of Concord and Pleasant Hill. That area is referred to as Zone 1. About 200 million gallons of recycled water are used annually by irrigation customers, including two golf courses, a community college, an elementary school, three middle schools, a high school, and the City of Pleasant Hill. This project will ultimately deliver 1.5 million gallons per day for irrigation use in the Pleasant Hill area. Central San will continue to collaborate with local water purveyors to identify cost-effective landscape irrigation and industrial recycled water projects. Central San currently produces over 600 million gallons per year of recycled water for use at the treatment plant site, for irrigation customers, and for a range of commercial uses. Over 200 million gallons per year of recycled water is provided to a variety of customers in Pleasant Hill, Concord, and businesses near Central San's treatment plant in Martinez. Recycled water is used for landscape irrigation at schools,parks,private businesses, golf courses, street medians, and for commercial applications such as truck washing, concrete manufacturing, dust control, and toilet and urinal flushing. Central San uses over 300 million gallons per year at the treatment plant for process water and landscape irrigation for Central San properties. Central San continues to pursue several projects as described in the following pages. The major emphasis of the Recycled Water Program for the next fiscal year will be to begin planning and preliminary design for improvements to Central San's existing recycled water treatment facilities and related support facilities, to address aging infrastructure needs, and maintain reliable recycled water service to customers and for use at Central San's treatment plant. Central San will also continue efforts to add new cost-effective customers in Central San's Zone 1 service area,pursue outside funding assistance (such as federal and state grants for all Central San recycled water projects), and work with water supply agencies to develop recycled water supply alternatives, such as the Water Exchange Project with CCWD and Santa Clara Valley Water District (SCVWD). Example of Project Driver(s) Each project is described on the following pages. Each project Aging summary includes project name, description,purpose, operating Infrastructure Capacity department impact and funding source, location,budgetary information and drivers (i.e., what is the main impetus for a project). The main driver(s) for each project is (are) identified by Regulatory Sustainability highlighting in orange background color and bold text. Driver(s) that is (are) not as significant or not relevant is (are) displayed in gray. 211 June 7, 2018 Regular Board Meeting Agenda Packet- Page 338 of 446 Page 220 of 264 Capital Improvement Program—CIB Recycled Water Program CIB Table 5 — FY 2018-19 Recycled Water Program Budget/Project Summary r Project "IF '411W Budget-to- Total Project Number Project Date FY 2018-19 FY 2019-20 Future FYs Cost 7306 Zone 1 Recycled Water $497,894 $35,000 $51,500 $103,000 $687,394 7346 Recycled Water Distribution System Surge Analysis $155,000 $50,000 $0 $0 $205,000 7361 Filter Plant&Clearwell Improvements $330,000 $2,457,000 $8,180,000 $11,393,000 $22,360,000 7365 ReW Clearwell Repairs $1,400,000 $300,000 $0 $0 $1,700,000 TBD* ReW Distribution System Renovations $0 $15,000 $60,000 $600,000 $675,000 Program Total Programf $2,382,894 $2,857,000 $8,291,500 $12,096,000 $25,627,394 *A new project starting in FY 2018-19. 212 June 7, 2018 Regular Board Meeting Agenda Packet- Page 339 of 446 Page 221 of 264 Capital Improvement Program—CIB Recycled Water Program Zone 1 Rec cled Water i . Program: Recycled Water Phase: !Construction Priority Rank: I Very High Ranking Score: 50 Purpose: To provide recycled water for landscape irrigation and other identified users within the Zone 1 Project area, which includes Aging Capacity Pleasant Hill and portions of Concord and Martinez. Infrastructure Drivers: Regulatory Sustainability In 2001, Central San completed the Zone 1 Implementation Plan that provided estimated connection costs and revenues for customers identified in the Zone 1 Project Agreement with Contra Costa Water District. Depending on the extent of use, demand for recycled water in Zone 1 for landscape irrigation and commercial uses could be up to 400 million gallons per year. Central San staff evaluates potential new recycled water landscape irrigation sites near the existing recycled water distribution pipelines. New customers will continue to be added to the recycled water distribution system where technically and economically feasible. Description: This project provides funds for the planning, design, and construction of recycled water facilities for landscape irrigation customers and other identified uses in the Zone 1 Project area. Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Zone 1 Recycled Water Distribution System- Pleasant Hill, Concord, Martinez BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $117,000 $0 $0 $0 $117,000 Design: 1b I $0 $0 Construction: $380,894 $35,000 $51,500 $103,000 $570,394 FY Total: $497,894 $35,000-F $51,500 $103,000 $687,394 213 June 7, 2018 Regular Board Meeting Agenda Packet- Page 340 of 446 Page 222 of 264 Capital Improvement Program—CIB Recycled Water Program Rec cled Water ReW Distribution S stem Sur a Anal sis Project Name ReW Distribution System Surge Analysis Project No. 7346 Program: Recycled Water I Phase: Planning/Design Priority Rank: Critical Ranking Score: 65 Purpose: To conduct a pressure transient and surge analysis of the Recycled Water Distribution System. I Infrastructure Capacity Drivers: The Recycled Water Distribution System has experienced several Regulatory Sustainability pipeline breaks over the last few years. An analysis of pressures within the Recycled Water Distribution System during different operating conditions is recommended to confirm whether the existing recycled water surge tank is adequately sized, given current recycled water demands . and operations, and to optimize pumping operations and _ controls if required. Description: Several elements are included in the project: • Monitor and evaluate pressure in the Recycled Water Distribution System • Evaluate the size and optimization of recycled water surge tank and pumps • Evaluate opportunities to manage pressure transients • Hydraulic modeling of the distribution system Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Recycled Water Pumping, Zone 1 Recycled Water Distribution System Budget Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $155,000 $50,000 $0 $0 $205,000 Design: $0 $0 $0 $0 Construction: $0 $0 $0 $0 $0 FY Total: $155,000 $50,000 $0 $205,000 214 June 7, 2018 Regular Board Meeting Agenda Packet- Page 341 of 446 Page 223 of 264 Capital Improvement Program—CIB Recycled Water Program Filter Plant & Clearwell Improvements . . Program: Recycled Water Phase: Planning/Design Priority Rank: Critical Ranking Score: 70 Purpose: r_TMZbrAT_ To rehabilitate and replace components of the existing Filter Plant V recycled water facilities. Aging Capacity Infrastructure Drivers: The recycled water facilities produce disinfected tertiary effluent Regulatory Sustainability that meets Title 22 recycled water requirements and is used on-site for utility water and is pumped offsite for various residential and _ commercial recycled water uses. The Filter Plant, Clearwell structure, and related facilities were constructed in the mid-1970s. The existing Filter Plant media has been partially replaced on a i routine basis over the years. The last partial media replacement effort was 15 years ago. The electrical and instrumentation infrastructure is mostly original, showing signs of significant wear, and requires replacement to ensure operational reliability. Opportunities to minimize energy demands and reduce chemical dosing requirements will be included in the rehabilitation project in addition to replacing chemical piping, valves, and pumps that are in poor condition. Description: The project includes the following major elements: • Replacement of the Clearwell liner and east cell cover • Rehabilitate and replace various electrical equipment(MCCs, switchgear, substation), and PLC's • Replace filter media,backwash system, inspect and repair or replace filter underdrain system • Replace or rehabilitate coagulant flash mixing, backwash gates, applied water valves, applied water pumps, and other miscellaneous equipment and valves • Replace sodium hypochlorite piping and pumps used for Title 22 disinfection compliance • Replace Filter Plant alum coagulant feed pumps, piping, and storage tank Operating Department Impact and Funding Source: The impacts to the operating budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Filter Plant and Clearwell Structure Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $330,000 $800,000 $0 $0 $1,130,000 Design: $0 $1,657,000 $800,000 $0 $2,457,000 Construction: $0 $0 $7,380,000 $11,393,000 $18,773,000 FY Total: I $330,000 $2,457,000 $8,180,000 $11,393,000 $22,360,000 215 June 7, 2018 Regular Board Meeting Agenda Packet- Page 342 of 446 Page 224 of 264 Capital Improvement Program—CIB Recycled Water Program Recycled Water Clearwell Repairs Project Name Recycled Water Clearwell Repairs Project No. 7365 Program: Recycled Water Phase: Construction Priority Rank: Critical Ranking Score: 80 Purpose: Commission the west cell of the Clearwell structure and perform ' Aging repairs to the east cell as needed. Infrastructure Capacity Drivers: Regulatory Sustainability The Clearwell structure was installed in 1975. A cover was installed on the east cell to reduce chlorine usage, prevent algae growth, and maintain recycled water quality. The east cell cover has ,. deteriorated rapidly in recent years. However, it is not feasible to repair the east cell cover due to lack of redundancy. This project will dewater, clean and dispose of solids from the west cell and - install a new modular cover on the west cell to obtain redundancy and ensure reliability of the recycled water supply system. Description: The project includes the following major elements: • Dewater, clean, and dispose of solids from the west cell • Installation of a new modular cover on the west cell • Repair east cell cover as needed • Minor mechanical modifications to operate the west cell Operating Department Impact and Funding Source: This project will not have an impact on the operating budgets. Project expenditures are funded from Capital Revenues. Location(s): Clearwell Structure Budget-to-Date FY 2018-19FY 2019-20 Future FYs Total Planning: $0 $07 $$0 1 $0 $0 Design: $60,000 $0 $0 $0 $60,000 Construction: $1,340,000 $300,000 $0 $0 $1,640,000 FY Total: $1,400,000 $300,000 $0 $0 $1,700,000 216 June 7, 2018 Regular Board Meeting Agenda Packet- Page 343 of 446 Page 225 of 264 Capital Improvement Program—CIB Recycled Water Program Recycled Water Distribution System Renovations Pro ram ProgramProject Name Recycled Water Distribution System Project No. TBD Renovations Program: Recycled Water20000mr.se Construction Priority Rank- Critical Ranking Score: 70 Purpose: 11 To replace or rehabilitate existing recycled water distribution Infrastructure Capacity system facilities. Drivers: Regulatory Sustainability Central San's Recycled Water Distribution System consists of approximately 13 miles of recycled water distribution r piping,which includes several isolation valves, pressure reducing valves, hydrants, flow meters, and other connections and appurtenances. The Recycled Water x' Distribution System includes pressured pipes installed over various years ranging from the mid-1990s to 2015 that now serves over 30 customers. Eventual replacement and/or rehabilitation of distribution system components will be required to maintain reliable service to Central San's Title 22 Zone 1 recycled water customers. Description: F This project includes replacement and rehabilitation of recycled es, meters, other appurtenancesI. addition this protect w 11 include J condition assessment and inspection of various recycled water distribution system assets. Operating Department Impact and Funding Source: The impacts to operational budgets have not yet been determined. Project expenditures are funded from Capital Revenues. Location(s): Zone 1 Recycled Water Distribution System- Pleasant Hill, Concord, Martinez BudgetProject Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total Planning: $0 $0 $0 $0 $0 Design: $0 1 $0 $0 $0 $0 Construction: $0 $15,000 $60,000 $600,000 $675,000 FY Total: $0 $15,000 $60,000 $600,000 $675,000 217 June 7, 2018 Regular Board Meeting Agenda Packet- Page 344 of 446 Page 226 of 264 Page Intentionally Blank 218 June 7, 2018 Regular Board Meeting Agenda Packet- Page 345 of 446 Page 227 of 264 Ten-Year Capital Improvement Plan (FY 2018 — FY 2027) Overview Central San has developed a Ten-Year Capital Improvement Plan(CIP) for capital facilities and financing needs. It incorporates the recommendations from the June 2017 Comprehensive Wastewater Master Plan(CWMP). The Ten-Year CIP is updated every year. Specifically, the plan identifies and prioritizes capital projects needed to accomplish Central San's Vision, Mission, Values and Goals. It also includes planning-level cost estimates for proposed projects and projections for the various sources of revenue needed to meet the cash flow requirements. The principal purpose of the Ten-Year CIP is to provide the Board with the information needed to formulate long-range policy regarding: • Priority and Schedule—Identify,prioritize, and schedule the projects necessary to accomplish Central San's Vision, Mission, Values and Goals. • Financing—Plan for sufficient financial resources to complete the proposed projects. The CWMP was a critical tool used by Central San to implement the following strategies from Central San's Strategic Plan(FY2018-2020): • Strive to Meet Regulatory Requirements by striving to achieve 100 percent permit compliance in air, water, land and other regulations and by striving to minimize the number of sanitary sewer overflows by continuing Best Management Practices. • Embracing Technology,Innovation and Environmental Sustainability by reducing reliance on non-renewable energy using sustainable practices that minimize waste, maximize resources, improve the community, as well as encouraging the review and testing of technology to optimize and modernize business operations. • Maintain Reliable Infrastructure by managing assets optimally through their life cycle, by facilitating long-term capital renewal and replacement, and by protecting Central San personnel and assets from threats and emergencies. The following Ten-Year CIP section provides a general description of the plan and a discussion of potential,unbudgeted future capital projects. As projects develop and are prioritized, they are grouped into the four programs (Treatment Plant, Collection System, General Improvements, and Recycled Water Program) as shown in the CIB. A brief description of each program and a list of major projects for the Ten-Year CIP are provided in the Capital Improvement Plan sections for each of the four programs. In total, the estimated costs for all the projects listed in the CIP is $805.7 Million. Ten-Year CIP Budget Process The Ten-Year CIP assumes that funds will be available to support the plan. These funds come from all revenue sources as discussed in the Financial Overview section. The only two discretionary sources of revenue are the sale of bonds or adjustment of the capital component of the SSC. The Board has not yet determined whether to issue bonds to fund this planned program. The Ten-Year CIP is currently funded on a year-by-year basis when the CIB for the upcoming fiscal year is formally authorized and adopted by the Board. Changes in capital revenue forecasts or changes in recommended expenditures may result in changes to this Ten-Year CIP. 219 June 7, 2018 Regular Board Meeting Agenda Packet- Page 346 of 446 Page 228 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan 2017 Comprehensive Wastewater Master Plan The CWMP was completed in June 2017. A key deliverable of the CWMP was an updated Capital Improvement Plan for the next 20-year planning horizon. The CWMP included descriptions, rationales, and estimated costs for collection system and wastewater treatment plant capital improvement projects and on-going programs to address aging infrastructure, meet existing and anticipated regulatory requirements, accommodate planned growth, optimize energy use, and implement Central San's vision for the treatment plant that is consistent with Central San's Strategic Plan. The CWMP was also a critical tool for maintaining a high level of service, establishing long-term fiscally responsible policies for our customers, and providing a clear direction for Central San. To accomplish this, the CWMP: • Confirmed CIP projects, costs, and site layouts for future facilities • Identified linkages among the major capital improvement projects and repair and replacement strategies such that the projects can be re-sorted and re-scheduled as changes in planning assumptions and needs occur • Identified triggers for implementing applied research (if applicable), preliminary design, design, and construction of the recommended capital improvement projects to determine efficient"just-in-time" project implementation • Identified new or updated policies,programs, and guidelines for the Board considerations to address overall program implementation including project prioritizations, implementation costs,project delivery methods,potential funding sources, and an estimated schedule for implementing plan elements • Confirmed and incorporate operations, maintenance, and energy management strategies • Accelerated and coordinated condition assessments with implementation of the asset management plan and confirm long-term repair and replacement strategies Some of these potential future projects identified in the CWMP are not currently included in the CIP. Central San's CIP will be updated annually as projects are clarified. These future projects are not included in the CIP and amount to about $920 million, of which approximately $510 million may be within the next 20 years. These projects include the following: • Nutrient Removal BACWA Levels 2/3: Possibly beyond 20 years ** • Recycled Water Exchange (Refinery Recycled Water) Project- 20 MGD • Advanced Treatment/Contaminants of Emerging Concern Removal ** • Renewable Energy Projects (triggered by increased power demands from nutrient removal) ** • Concord Community Reuse Project (CCRP) Recycled Water Facilities Improvements • CCRP Collection System Improvements * • CCRP Recycled Water Distribution System(Central San current plan is to wholesale recycled water, so distribution system was not evaluated or included in CIP) * Projects expected to be cost neutral to Central San. ** Projects identified but not currently required by regulations. 220 June 7, 2018 Regular Board Meeting Agenda Packet- Page 347 of 446 Page 229 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan Ten-Year CIP Drivers Projects included in the CIP address one or more of the four major drivers for implementing capital improvement projects: 1)Aging Infrastructure; 2)Regulatory; 3) Capacity; and 4) Sustainability. Most project scopes include several project elements that address a range of drivers. Below is a description for each of the four major drivers: • Aging Infrastructure: This project driver describes projects required to maintain the performance and reliability of existing assets to ensure reliable conveyance and treatment of wastewater. Central San operates and maintains several billion dollars of assets, and several projects in each program have been initiated or are in progress to meet the replacement or rehabilitation needs for our infrastructure. Most of existing treatment plant facilities were constructed in the late 1970s and early 1980s following the passing of the Clean Water Act, and some of the collection system facilities and piping were constructed as early as the 1940s and 1950s. Central San recognizes the need to address aging infrastructure and has developed an Asset Management system. • Regulatory: This project driver describes projects required to reliably comply with regulatory requirements that are designed to protect human health and the environment, and includes planning needed to anticipate potential future regulatory requirements. Regulatory drivers that may trigger capital improvement projects include potential changes in future state and/or federal water, air, and solids regulations. Potential regulatory drivers include: changes to existing final effluent limits to address nutrients, selenium, contaminants of emerging concern, and others; changes to California/National Toxics Rules, 303 (d) listed pollutants and micropollutants, and new virus-based disinfection criterion; reductions in greenhouse gas emission Cap and Trade Program thresholds; compliance with Federal 129 sewage sludge incineration rules, changes to air emission limits, and solids handling/management and disposal regulations; recycled water, including potential coordinated projects with water agencies on Title 22, indirect, and even indirect or direct potable reuse opportunities; and collection system regulatory requirements such as the reduction of sewer system overflows (SSOs). Occasionally, improvements are also required to improve the reliability of existing facilities to ensure 100 percent compliance with regulatory permits and to ensure protection of human health and the environment. • Capacity: This project driver describes projects required to increase capacity of existing facilities. Capacity drivers that may trigger capital improvement projects include potential upgrades required to mitigate hydraulic bottlenecks and increase capacity of existing facilities to accommodate wastewater flows and loads. Projects that would be required to accommodate planned growth are not included in the CIP. • Sustainability/Energy/Optimization: This project driver describes projects to minimize life-cycle costs, maximize benefits, and achieve economic stability through optimization, resiliency, resource recovery, and energy projects. Sustainability drivers that may trigger capital improvement projects include upgrades to strive towards net zero energy, recycled water projects to ensure the reliable supply of recycled water for use at Central San and for use by Central San's customers, and upgrades to improve the resiliency of Central San facilities. Improvements to strive towards net zero energy or energy self-sufficiency include energy efficiency measures such as installing more energy efficient equipment or treatment processes, and renewable energy projects such as solar or wind. 221 June 7, 2018 Regular Board Meeting Agenda Packet- Page 348 of 446 Page 230 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan Ten-Year CIP — Treatment Plant Program The Treatment Plant Program includes projects that will address aging infrastructure needs, meet regulatory requirements, address any hydraulic or process capacity deficiencies, and improve sustainability or help meet sustainability related goals. The emphasis of the Ten-Year CIP—Treatment Plant Program will be on the repair and replacement of aging treatment plant infrastructure, improving existing facilities to ensure reliable compliance with increasingly stringent regulatory requirements, improving the resiliency of existing facilities against security threats and natural hazards such as seismic and flooding events, and improving overall energy efficiency. Central San staff will continue to evaluate treatment alternatives and applied research projects and pilots to address potential nutrient removal regulations; to confirm the optimal long-term solids handling strategy; and to strive closer to net zero energy in support of Board Policy 027—Energy. The following tables identify major projects in the Ten-Year CIP—Treatment Plant Program. The projects have been grouped into one of three project categories: 1) Liquid Treatment Process; 2) Solids Handling Process; or 3) General Treatment Plant and Safety Improvements. Ten-Year CIP — Treatment Plant Program Projects: Liquid Treatment Process Implement improvements for wet weather flow management and holding Wet Weather Flow Headworks, Wet basin operation such as raw wastewater Management 2020 to 2023 Weather Holding Basins diversion pipeline, drain back pumping, sixth influent pump, and improved basin grading and drainage. Construct up to two additional primary sedimentation tanks and corresponding Primary Expansion 2023 to 2028 Pre-Aeration, Primaries new pre-aeration (grit removal)tank, improve wet weather grit handling, and replace primary sludge pumps. If required by regulations, construct chemically enhanced primary treatment Nutrient Removal Primary Sedimentation and modify Aeration and Nitrification Optimizations 2024 to 2028 TanksA/N Tanks tanks and secondary treatment process (BACWA Level 1) , to operate in a seasonal nitrification/denitrification treatment mode during dry weather months. Increase secondary treatment wet weather capacity to accommodate 20- Secondary Treatment Secondary Clarifiers, year wet weather storage event. This Hydraulic 2024 to 2028 UV Channel, Final includes a mixed liquor flow split Improvements Effluent Channel structure for the secondary clarifiers, up to two additional secondary clarifiers, and mixed liquor channel improvements such as new gates. 222 June 7, 2018 Regular Board Meeting Agenda Packet- Page 349 of 446 Page 231 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan Project • • • • Increase wet weather hydraulic capacity through UV Disinfection and Final Effluent Channel to accommodate UV Hydraulic UV Channel, Final 20-year wet weather storage event. This Improvements 2019 to 2021 Effluent Channel includes low lift pumps to alleviate UV channel hydraulic bottlenecks and installing a new parallel final effluent pipe. UV Disinfection Replace the aging existing UV Replacement 2019 to 2024 UV Channel Disinfection process with a new, more energy efficient UV Disinfection process. Inspect the condition of several large diameter, critical pipelines on the treatment plant site such as primary Condition Assessment effluent, mixed liquor, secondary of Buried Pipelines 2019 to 2021 Treatment Plant effluent, final effluent pipelines, and wet weather bypass pipelines. These inspections will require complicated shutdowns and temporary bypass pumping and piping. Inspect Outfall Pipe and make Outfall Improvements— 2026-2028 Treatment Plant necessary repairs. This project will Phase 8 require complicated shutdowns and temporary bypass pumping and piping. Energy Recovery and To replace and improve the existing Blower Replacement Present to steam system, waste heat recovery, and Ener Upgrades 2025 Treatment Plant steam turbines, and improve the Energy pg Project secondary treatment systems related to aeration energy requirements. Ten-Year CIP — Treatment Plant Program Projects: Solids Handling Process Project Title Year(s), Location Descriopticary h�M6 Md L If Rehabilitation of aging critical electrical Energy Production Solids Conditioning infrastructure, replacement of the Facility Improvements 2022 to 2026 Building cogeneration turbine will be required, and other miscellaneous heat recovery equipment will require upgrades. 223 June 7, 2018 Regular Board Meeting Agenda Packet- Page 350 of 446 Page 232 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan Ten-Year CIP — Treatment Plant Program Projects: General Treatment Plant and Safety Improvements Project Title Year(s) Location Descriptio%. IP Programmable Logic Continued hardware and software Controllers (PLC) Present through 2028 Treatment Plant replacement and upgrades to maintain Systems Upgrades PLCs. Continued planning to identify potential capital improvement projects required Treatment Plant Planning Present Treatment Plant to address aging infrastructure needs, through 2028 regulatory drivers, capacity deficiencies, and sustainability and optimization opportunities. Applied Research and Present Implement applied research projects Innovations through 2028 Treatment Plant that evaluate promising and innovative technologies and processes. Surcharge Soil Pile Surcharge Pile, Basin Excavate and re-locate Surcharge Pile Relocation 2020 to 2023 A South soils to Basin A South and replace soil cap. Complete an evaluation and Treatment Plant SCADA implementation plan for upgrade and Improvements 2019 to 2023 Treatment Plant replacement of the SCADA, PLCs, and communications networks, and determine workforce planning needs. Complete resiliency evaluation of Treatment Plant Network network system and evaluate needs for Resiliency Evaluation 2023 to 2028 Treatment Plant redundancy in communications, information systems, and process control systems. Fire Protection Continue phased upgrades and System— Phases 3 2019 to 2022 Treatment Plant replacement of the fire alarm systems through 6 throughout the treatment plant. Implement upgrades to the Warehouse Warehouse Seismic 2022 to 2025 Warehouse Building to meet current seismic design Upgrades standards and improve overall seismic safety. Implement upgrades to the Laboratory Laboratory Seismic 2022 to 2025 Laboratory Building Building to meet current seismic design Upgrades standards and improve overall seismic safety. Filter Plant, UV, Implement seismic upgrades to Miscellaneous Seismic 2022 to 2025 Headworks, Fuel Oil, miscellaneous structures and process Upgrades Hypo Tanks, Substations equipment around the treatment plant. Treatment Plant Safety Continue to implement safety-related Enhancements— Phases 2019 to 2028 Treatment Plant enhancements around the treatment 5 through 11 plant to proactively address safety concerns. 224 June 7, 2018 Regular Board Meeting Agenda Packet- Page 351 of 446 Page 233 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan Project • • • • This program will fund aging infrastructure projects around the treatment plant. Aging infrastructure needs will continue to be packaged Aging Infrastructure 2019 to 2028 Treatment Plant together and implemented as spinoff Replacement Program capital projects from this program (for example, piping replacement projects, equipment replacement, and electrical/instrumentation/control systems rehabilitation). Install user-friendly human machine Plant Operations and interface (HMI)that integrates control Laboratory Data 2019 to 2021 Treatment Plant system data and laboratory data for Improvements improved process analysis, trending, and optimizations. Ten-Year CIP — Collection System Program The Collection System Program includes projects that will address aging and deteriorating infrastructure needs, meet regulatory requirements, address any capacity deficiencies, and improve sustainability or help meet sustainability related goals. The emphasis of the Ten-Year CIP—Collection System Program will be on rehabilitating and replacing deteriorating sewers, new development and sewer expansion by developers within Central San's service area,upgrading aging pump stations, and implementing large diameter and force main inspection programs. The inspection programs will help to update the condition of existing infrastructure and to confirm the timing and cost of rehabilitation or replacement of large diameter sewers and force mains. Overall, these projects are targeted at reducing the risk of SSO's in Central San's collection system. Central San staff will continue to update the new collection system hydrodynamic model (Info Works®) to confirm the need and timing for future projects required to alleviate capacity deficiencies and to determine sewer replacement needs. The InfoMaster(&program uses CCTV inspection scoring results, sewer cleaning frequency data, pipe age, and other information to assign a likelihood of failure score to each pipe segment in the collection system. The consequence of failure for each pipe segment was determined using factors such as pipeline size, flow conditions, proximity to waterways, hospitals, schools, and roads. The overall risk of each segment based on the likelihood of failure and consequence of failure scores, and a decision matrix developed through workshops with staff were used to prioritize the replacement of each pipe segment. The InfoMaster®then helps to develop a long-term sewer replacement strategy or program based on the timing/prioritization, and cost for sewer replacement needs. Staff will then work to group sewers of concern geographically and bid as capital projects. The following tables identify major projects in the Ten-Year CIP— Collection System Program. The projects have been grouped into one of five project categories: 1) Collection System Rehabilitation and Replacement(R&R); 2) Pump Stations; 3) Regulatory Compliance; 4) Collection System Expansion; and 5) Contractual Assessment Districts (CADS) and Development Sewerage. 225 June 7, 2018 Regular Board Meeting Agenda Packet- Page 352 of 446 Page 234 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan Ten-Year CIP — Collection System Program Projects: Collection System R&R . 12MV Manhole Modification Present This program will fund manhole Project through 2028 Collection System modifications and replacement throughout the collection system. Present Implement pipe bursting repair projects Pipe Bursting Contract through 2028 Collection System to address pipelines that require immediate action. Present Implement cured-in-place (CIPP) repair CIPP Contract through 2028 Collection System projects to address pipelines that require immediate action. This program will fund rehabilitation and replacement of aging sewers throughout the collection system. Aging Collection System Sewer 2023 to 2028 Collection System infrastructure needs will continue to be Renovation— Phase 2 identified, prioritized by risk, and packaged into capital projects by geographical areas throughout the collection system. Ten-Year CIP — Collection System Program Projects: Pump Stations Project Title Location Description. Rehabilitation and replacement of miscellaneous pumps, piping, valves, Pump Station Upgrades Present Martinez, Fairview and and other equipment identified in the —Phase 2 through 2026 Maltby Pump Stations field. Acquire necessary pump station emergency response equipment and critical spare parts. Pump Station PLC 2021 to 2023 Miscellaneous Pump Upgrade outdated PLC software Upgrades Stations language for all pump stations. Buchanan North and Implement major pump station Pump Station 2020 to 2023 South, Concord upgrades to address structural, Improvements Industrial, and Other mechanical, electrical, instrumentation, Pump Stations and other improvements. Ten-Year CIP — Collection System Program Projects: Regulatory Compliance LocationProject Title Descriptiollp-ml Continued planning to identify potential capital improvement projects required Collection System Present Collection System to address aging infrastructure needs, Planning through 2028 regulatory drivers, capacity deficiencies, and sustainability and optimization opportunities. 226 June 7, 2018 Regular Board Meeting Agenda Packet- Page 353 of 446 Page 235 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan Year Project Title Location Description Continued build-out of the collection Collection System Present system modeled network to include Modeling Support through 2028 Collection System areas of planned development, and other major upgrades and updates to the hydraulic model. Phased inspection program for large- Large Diameter Pipeline Present Collection System diameter trunks and interceptors to Inspection Program through 2028 update condition and prioritize rehabilitation and replacement needs. Force Main Inspection Present Phased inspection program for force Program through 2028 Collection System mains to update condition and prioritize rehabilitation and replacement needs. Implement miscellaneous relief projects Wet Weather Capacity 2020 to 2028 Collection System for sewers identified by the collection Improvements system hydraulic model as having wet weather hydraulic capacity deficiencies. Ten-Year CIP — Collection System Program Projects: CADS and Development Sewerage CNEW I=W M . . W. Development Sewerage Present Capitalized staff labor and expenses for Support through 2028 Central San-wide the survey, right-of-way for construction of developer installed sewer facilities. Ten-Year CIP — General Improvements Program The General Improvement Program includes projects that will address aging infrastructure needs, meet regulatory requirements, and improve sustainability or help meet sustainability related goals. This includes implementing property and building improvements, addressing equipment needs, acquiring new properties if required, completing development of the Asset Management Program, information management system and data management system upgrades, general security improvements enhancement, and cyber security. Many of Central San's building are over 25 years of age and are starting to require general building upgrades to both the interior and exterior of the buildings such as painting, replacing ceiling tiles, upgrading fixtures, replacing roofs, replacing worn furniture and other equipment, and upgrading buildings to meet current seismic standards. The emphasis of the General Improvement Program for the Ten-Year CIP will be on upgrading many of those aging buildings. In addition, Central San will continue to require routine acquisition of new equipment, vehicle replacement, security improvements, and information technology improvements, and improved cyber security enhancements. The following tables identify major projects in the Ten-Year CIP—General Improvements Program. The projects have been grouped into one of three (3)project categories: 1) Vehicles and Equipment Acquisition; 2) Buildings and District Property; and 3) Information Technology Development. 227 June 7, 2018 Regular Board Meeting Agenda Packet- Page 354 of 446 Page 236 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan Ten-Year CIP — General Improvements Program Projects: Vehicles and Equipment Ac uisition Project Title— w Present Acquisition of new equipment for Equipment Acquisition through 2028 Central San-wide operation and maintenance of Central San assets. Vehicle Replacement Present Central San-wide Continued replacement and acquisition Program through 2028 of new Central San vehicles. Ten-Year CIP — General Improvements Program Projects: Buildings and District Property Project Title 111 1 0 Improvements to Central San's Property and Building Present Central San-wide buildings, buffer properties, rental Improvements through 2028 properties, and the surrounding parking lots and grounds. Improve or acquire new property land District Easement Present Central San-wide rights for existing or new sanitary Acquisition through 2028 sewers that are located on private properties. General Security and Present Continued implementation of general Access through 2028 Central San-wide security improvements for Central San buildings and properties. Ten-Year CIP — General Improvements Program Projects: Information Technology Development . � Information Technology Present Central San-wide Continued implementation of Central Development through 2028 San-wide IT improvements. Present Improvements to enhance cyber Cyber Security through 2028 Central San-Wide security and resilience of critical information technology infrastructure. Ten-Year CIP — Recycled Water Program The Recycled Water Program includes projects that will address aging infrastructure needs, meet regulatory requirements, address any capacity deficiencies, and improve sustainability or help meet sustainability related goals. The emphasis of the Ten-Year CIP—Recycled Water Program will be on continued expansion of the Zone 1 Recycled Water Program in support of Board Policy 019 - Recycled Water, implementing improvements to the existing recycled water filter plant and related support facilities to address aging infrastructure to ensure reliable supply of recycled water, replacing and installing new clear well liner and covers, and initiating ongoing rehabilitation and replacement of recycled water distribution system assets. Central San staff will continue to explore and plan for other potential recycled water projects and related improvements and expansions that may be required. These other projects will likely involve the wholesale of recycled water to a water purveyor. The following table identifies major projects in the Ten-Year CIP— Recycled Water Program. 228 June 7, 2018 Regular Board Meeting Agenda Packet- Page 355 of 446 Page 237 of 264 Capital Improvement Program—Ten-Year Capital Improvement Plan Ten-Year CIP — Recycled Water Program Projects: I Continue to expand Zone 1 Recycled Water Program, where cost-effective, Zone 1 Area within for landscape irrigation at schools, Zone 1 Recycled Water Present to Concord, Martinez, parks, private businesses, golf courses, 2028 and Pleasant Hill street medians, and for commercial applications such as truck washing, concrete manufacturing, dust control, and toilet and urinal flushing. Implement a recurring rehabilitation and Recycled Water Zone 1 Area within replacement program for recycled water Distribution System 2019 to 2028 Concord, Martinez, distribution system assets such as the Renovations and Pleasant Hill recycled water surge tank, distribution piping, valves, and flow meters. Ten-Year CIP Expenditures The Ten-Year CIP provides a basis for policy decisions concerning Central San's long-range Capital Improvement Program and management of the Sewer Construction Fund. The Ten-Year CIP also serves as the capital improvement expenditure basis for performing the fee analysis. This plan includes projected expenditures totaling $805.7 million (in 2018 Dollars) over the w period from FY 2018-19 through FY 2027-28. A summary of the planned expenditures by program, without inflation, for the Ten-Year CIP is included in the Table 1 on the next page. / 'v� e,e Deme is R.a rt ene 1111 anal�e Clearvfel_n.r Pum PE`7a'ibn Filte. P Remc ap\ _I__ ��\NeiIearvell G< _r o Actfi mg 1, yatee PPort led P P M1on _ Enl.,o ng Flte / /Da Rau.Flood--h-I—— Wa- y'PN.DR/�_ toWNHHA WouuEnetl moll ontlary _ _ - New qRi Tanha c a n - z_ amweegnaing D9Eox wWa;tewaSer Div ion p er and D-b-Pipe ers 5lowar Bulldin9- B 000ce DAF UV td eLoatl OW Fateolly yFpEN 17cv_mentcr \ an dplaDGupport Equipment Gpauy FE PP. Fluitlizetl bed incinera[gr,DRG.:PIid; gegufabry CapacRy SYuay�Tubb Replacement abllM1 C EPT` �r - . IidS h l .g T-1mprovemelM1.: Ag5 rr rP �"� �'. I— ReM1ab1lrtaWn ., PPmp.. - Deteemnna Ramo­anew ea< DRAFT r APLANT OF FUTURE Al 10coftceneP iT ,✓ Re rst a.o tpdeT Pe rt R.men lame­rr c­­­tltle., - - Illustration of a Potential Central San Treatment Plant of the Future 229 June 7, 2018 Regular Board Meeting Agenda Packet- Page 356 of 446 Page 238 of 264 Page intentionally Blank 230 June 7, 2018 Regular Board Meeting Agenda Packet- Page 357 of 446 Page 239 of 264 Table 1 -Ten Year Program Estimated Expenditure (2018-2028) -Summary by Program (in 2018 Dollars) iFY 2019- FY i i -25 - 20 0 in d 1 2 3 4 5 6 7 8 9 10 Unescalated Mir Liquid Treatment Process $2,686,000 $7,223,570 $9,147,430 $19,940,800 $26,205,260 $22,713,560 $19,679,180 $22,336,580 $35,350,630 $19,486,570 $184,769,580 Solids Handling Process Treatment $5,765,000 $11,975,630 $26,983,940 $24,823,000 $8,820,920 $3,965,500 $10,336,050 $4,120,000 $0 $0 $96,790,040 General Treatment Plant Improvements and Safety $8,414,000 $19,314,045 $16,378,545 $24,692,448 $22,029,898 $10,208,845 $7,605,520 $8,301,800 $12,301,290 $17,400,820 $146,647,211 Total Ten -Year CIP for Treatment Plant Program $16,865,000 $38,513,245 $52,509,915 $69,456,248 $57,056,078 $36,887,905 $37,620,750 $34,758,380 $47,651,920 $36,887,390 $428,206,831 Collection System Replacement and Rehabilitation (R&R) $16,000,000 $18,241,300 $18,591,500 $17,973,500 $22,299,500 $22,917,500 $22,299,500 $22,299,500 $22,917,500 $26,419,500 $209,959,300 Pump Stations $2,797,000 $6,376,478 $14,784,986 $10,017,033 $17,385,076 $7,456,041 $487,844 $154,500 $154,500 $154,500 $59,767,958 Regulatory Compliance $300,000 $1,176,260 $1,651,090 $4,807,010 $1,486,290 $2,330,890 $5,623,800 $13,069,670 $3,702,850 $2,051,760 $36,199,620 Contractual Assessment Districts (CADs) - Development Sewerage $250,000 $309,000 $309,000 $309,000 $309,000 $309,000 $309,000 $309,000 $309,000 $309,000 $3,031,000 Total Ten -Year CIP for Collection System Program $19,347,000 $26,103,038 $35,336,576 $33,106,543 $41,479,866 $33,013,431 $28,720,144 $35,832,670 $27,083,850 $28,934,760 $308,957,878 Future Recycled Water Development Planning $15,000 $77,250 $79,568 $81,955 $84,413 $86,946 $89,554 $92,241 $95,008 $97,858 $799,791 Existing Zone -1 $35,000 $51,500 $51,500 $51,500 $51,500 $51,500 $51,500 $51,500 $51,500 $51,500 $498,500 Existing Recycled Water Treatment Facilities R&R $2,807,000 $8,240,000 $8,240,000 $3,090,000 $0 $0 $0 $0 $0 $0 $22,377,000 Total Ten -Year CIP for Recycled Water Program $2,857,000 $8,368,750 $8,371,068 $3,223,455 $135,913 $138,446 $1419054 $143,741 $146,508 $149,358 $23,675,291 Vehicles Replacement $650,000 $772,500 $772,500 $772,500 $772,500 $772,500 $772,500 $772,500 $772,500 $772,500 $7,602,500 Equipment Replacement $200,000 $206,000 $206,000 $206,000 $206,000 $206,000 $206,000 $206,000 $206,000 $206,000 $2,054,000 Buildings and District Property $850,000 $412,000 $412,000 $412,000 $412,000 $412,000 $412,000 $412,000 $412,000 $412,000 $4,558,000 Capital Legal Services $20,000 $20,600 $20,600 $20,600 $20,600 $20,600 $20,600 $20,600 $20,600 $20,600 $205,400 Asset Management Program Development $400,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $400,000 Information Technology Development $2,630,000 $2,523,500 $1,184,500 $978,500 $978,500 $463,500 $463,500 $463,500 $463,500 $463,500 $10,612,500 Total Ten -Year CIP for General Improvements Program $4,750,000 $3,934,600 $2,595,600 $2,389,600 $2,389,600 $1,874,600 $1,874,600 $1,874,600 $1,874,600 $1,874,600 $25,432,400 Program Contingency $1,500,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $19,500,000 Total Ten -Year CIP Program $45,319,000 $78,919,633 $100,813,158 $110,175,846 $103,061,458 $73,914,382 $70,356,548 $74,609,391 $78,756,878 $69,846,108 $805,772,400 231 June 7, 2018 Regular Board Meeting Agenda Packet- Page 358 of 446 Page 240 of 264 Page Intentionally Blank 232 June 7, 2018 Regular Board Meeting Agenda Packet- Page 359 of 446 Page 241 of 264 Debt Program Debt Program Since 2009, Central San has utilized a pay-as-you-go philosophy for capital expenditures. In 2009, and in some earlier years, Central San utilized long-term financing through obligations issued by the Central Contra Costa Sanitary District Facilities Financing Authority. The 2009 obligations (certificates of participation) were issued for the purpose of providing funding for new capital expenditures and to refinance existing debt. Such financial obligations are referred in this document to as bonds or debt. Central San's Debt Service is presently funded by ad valorem tax and interest income. Debt service is projected at $3.6 million, a reduction from$3.8 million in Fiscal Year 2017-18 due to the repayment of the outstanding Reclamation Loan in FY 2017-18. Table 1 summarizes the Debt Service sub-fund Budget. Central San anticipates utilizing long-term financing in FY 2019-20 to finance projects outlined in the Ten -year CIP, including those specified in the Comprehensive Wastewater Master Plan. A new Debt Management and Continuing Disclosure Policy was adopted during FY 2017-18, which specifies the conditions under which debt and other forms of external financing can be used. Table 1 - Debt Service Fund Budget Summary BudgetFY 2016-17 FY 2017-18 FY 2018-19 'Debt Service Sub-Fund Actual Budget Debt Service Revenue: Reserve Account Bond Interest Income $49,436 $45,700 $82,447 Ad Valorem Tax(portion allocated to Debt Service) $3,741,719 $3,773,399 $3,528,591 Total Revenue $3,791,155 $3,819,099 $3,611,038 Debt Service Expense 2009 Bond Interest Payment and Amortized Costs,Less Subsidy on BABs $1,275,346 $1,198,221 $1,103,530 Reduction of tax subsidy due to congressional sequestration $28,690 $28,759 $27,508 Recycled Water Loan Interest Payment $9,363 $4,742 $0 Total Interest Payment and Amortization Costs $1,313,399 $1,231,722 $1,131,038 2009 Bond Principal Payment $2,300,000 $2,405,000 $2,480,000 Recycled Water Principal Payment $177,7561 $182,377 $0 Total Principal Payments $2,477,756 $2,587,377 $2,480,000 Total Debt Service Interest,Amortized Cost and Principal Payments $3,791,155 $3,819,099 $3,611,038 2009 Bonds/Certificates of Participation The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B (Bonds) were issued for$19.6 million and $34.5 million, respectively,on November 12,2009 and on December 3,2009. The proceeds were used in part to finance new capital expenditures ($17,254,775 of Series A and $12,745,225 of Series B), to refund previous debt ($20,225,275 of Series B), and to pay costs of issuance. The Series A Bonds are federally taxable Build America Bonds (BABs), which have a rate subsidy from the federal government. Coupons on this series range from 5.20%to 5.70%, while yields range from 3.45% to 3.78% net of the subsidy. The Series B Bonds are tax-exempt bonds that were used to refund the 1998 and 2002 bond issuances and raise an additional $30.0 million in new 233 June 7, 2018 Regular Board Meeting Agenda Packet- Page 360 of 446 Page 242 of 264 Debt Program proceeds, with coupons ranging from 4.00% to 5.00% and yields ranging from 0.40%to 3.79%. The two bonds total $54.1 million and are secured by a pledge of tax and net revenues of the wastewater system. Both bonds will be fully amortized on September 1, 2029. Reclamation Loan In FY 2017-18, Central San paid the final installment on a $2.9 million loan from FY 1998-99 with the California State Water Resources Control Board(SWRCB). The loan advanced Central San funds for the design and construction costs for projects related to recycled water treatment programs. Central San repaid advances from the SWRCB over a 20-year period ending in FY 2017-18. Figure 1 and Table 2 summarize Central San's debt service obligations. Figure 1 shows debt service on currently outstanding debt. Central San is projecting a bond issuance during FY 2019-20. Figure 1 - Debt Service by Type $7,000,000 — $6,000,000 — $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 ' O� oil Ci (Sy O'S 4�) 01 (ZP 1:1/ ,y') ,y� ,y'� y� .�'y .ti'S 'Lh -,A, tiO O� OV �F 00 OI ODS OrO OI ,yO ,'L y0� tiO tiV ,yO ,1'L ,y0� tiV ti� ,yoi yoi tiO ,yO ,yO ,tiO ,tiO ,yO ,yO ,yO ,tiO ,tiO ,tiO ,LO ,tiO ,tiO ,tiO ,yO ■ 1994/1998/2002 Refunding Revenue Bonds ■2009 Bonds ■ Recycled Water Loan 234 June 7, 2018 Regular Board Meeting Agenda Packet- Page 361 of 446 Page 243 of 264 Debt Program Table 2 - Debt Summary 1994/1998/2002 Refunding Revenue Bonds 2009 Bonds Recycled Water Loan Total Total Total Amortization Debt Amortization Debt Debt Fiscal Year Principal Principal Principal Interest &Interest Service &Interest Service Service 1994-95 $688,127 $688,127 1995-96 $1,458,830 $1,458,830 1996-97 $755,000 $1,459,741 $2,214,741 1997-98 $790,000 $1,421,245 $2,211,245 1998-99 $835,000 $1,150,177 $1,985,177 $139,194 $47,925 $187,119 1999-00 $725,000 $1,221,898 $1,946,898 $114,900 $72,219 $187,119 2000-01 $1,245,000 $1,181,356 $2,426,356 $117,887 $69,232 $187,119 2001-02 $1,285,000 $1,195,057 $2,480,057 $120,952 $66,167 $187,119 2002-03 $1,330,000 $1,832,680 $3,162,680 $124,097 $63,022 $187,119 2003-04 $1,375,000 $1,790,547 $3,165,547 $127,323 $59,796 $187,119 2004-05 $1,995,000 $1,719,372 $3,714,372 $130,634 $56,486 $187,119 2005-06 $2,060,000 $1,641,214 $3,701,214 $134,030 $53,089 $187,119 2006-07 $2,135,000 $1,559,500 $3,694,500 $137,515 $49,604 $187,119 2007-08 $2,210,000 $1,472,113 $3,682,113 $141,090 $46,029 $187,119 2008-09 $2,300,000 $1,379,326 $3,679,326 $144,759 $42,360 $187,119 2009-10 $2,390,000 $190,068 $2,580,068 $1,255,607 $1,255,607 $148,522 $38,597 $187,119 2010-11 $3,460,000 $2,027,168 $5,487,168 $152,384 $34,735 $187,119 2011-12 $3,465,000 $1,888,601 $5,353,601 $156,346 $30,773 $187,119 2012-13 $3,605,000 $1,775,376 $5,380,376 $160,411 $26,708 $187,119 2013-14 $3,720,000 $1,941,016 $5,661,016 $164,582 $22,538 $187,119 2014-15 $3,865,000 $1,474,513 $5,339,513 $168,861 $18,258 $187,119 2015-16 $2,210,000 $1,375,080 $3,585,080 $173,251 $13,868 $187,119 2016-17 $2,300,000 $1,275,346 $3,575,346 $177,756 $9,363 $187,119 2017-18 $2,405,000 $1,198,221 $3,603,221 $182,377 $4,742 $187,119 2018-19 $2,480,000 $1,103,530 $3,583,530 2019-20 $2,580,000 $1,000,996 $3,580,996 2020-21 $2,685,000 $902,873 $3,587,873 2021-22 $2,785,000 $792,406 $3,577,406 2022-23 $2,900,000 $673,794 $3,573,794 2023-24 $3,015,000 $549,015 $3,564,015 2024-25 $1,905,000 $469,232 $2,374,232 2025-26 $1,975,000 $387,397 $2,362,397 2026-27 $2,060,000 $300,296 $2,360,296 2027-28 $2,145,000 $209,576 $2,354,576 2028-29 $2,235,000 $115,059 $2,350,059 2029-30* $2,330,000 $16,533 $2,346,533 *Final Payment made from Reserve Fund Note:2009 Bond debt service reflects the original repayment schedule amounts.Changes to GASB rules and sequestration of Build America Bond refunds have changed actual total debt service in some years.Actual debt service amounts are in the CAFR and audited financial statements. 235 June 7, 2018 Regular Board Meeting Agenda Packet- Page 362 of 446 Page 244 of 264 Debt Program Externally Imposed Debt Limits Central San, as a Sanitary District, is subject to certain limits on the direct issuance of bonds payable from proceeds of taxes levied on taxable property in the district. Total bonds issued by the District cannot exceed 15-20% (depending on some factors) of the assessed value of real and personal property in the district(Health and Safety Code Section 6651). Bond issuances of this nature would require an election with 2/3 voter approval (H&S Code 6644). Central San has no bonds subject to this limitation outstanding. Refunding bonds are not subject to the limitation and election requirement. Central San has most recently in 2009 (and previously in 1994 and 2002) financed a portion of its capital improvements through the use of a financing authority(a"joint powers authority(JPA)"), using a form of an Installment Sale Agreement with a similar payment structure as a bond. In such an arrangement, the financing authority issues bonds or certificates of participation, with the Installment Sale Agreement supporting the JPA bonds (payments on the Installment Agreement received by the JPA pay the JPA's bonds). This structure is typical for California special districts and is not subject to the bond election and debt limits described in the preceding paragraph. While external financing of the capital program is not anticipated for FY 2018-19, in future years Central San anticipates financing a portion of its capital improvement program through the financing authority structure used in 2009. Agency Debt Limits A Debt Management and Continuing Disclosure Policy adopted during FY 2017-18 specified the conditions under which debt and other forms of external financing can be used. This policy is intended to cover both Central San and the Central Contra Costa Sanitary District Facilities Financing Authority, for"debt" in a broad sense, as well as other external financial obligations as an Installment Sale Agreement, which is not a bond and technically is not considered a debt. This policy (Board Policy 029) provided certain guidance on the use of debt and financial obligations, as follows: Debt Management and Continuing Disclosure Policy Standards for Use of Debt Financing The District shall integrate its debt issuances with the goals of its Capital Improvement Program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the District's public purposes (as articulated in, inter alia, the District's mission, vision and goals) and are consistent with the rate and financial planning parameters specified in the District's long-term financial plans. The Board shall be presented with a long-term financial plan in each instance Sewer Service Charge rates are to be adjusted. 1. The long-term financial plans will specify an expected debt issuance amount over a decade or more long-term planning horizon. a. The District shall target rate or tax revenue funding of, at a minimum, the value of the collection system replacement program (specifically,pipeline replacement) component of the CIP. b. Not more than 60% of the overall CIP shall be financed with debt. 236 June 7, 2018 Regular Board Meeting Agenda Packet- Page 363 of 446 Page 245 of 264 Debt Program 2. All projects in the CIP are eligible to use debt financing, so long as the minimum rate or tax revenues are generated as described in this section. This policy does not contemplate the use of debt financing to fund ongoing operating &maintenance expenditures; exceptions beyond a de minimis amount would require approval of the Board. With respect to debt repayment and amortization, the debt repayment period should be structured so that the weighted average maturity of the debt does not exceed 100% of the expected average useful life of the project being financed. 237 June 7, 2018 Regular Board Meeting Agenda Packet- Page 364 of 446 Page 246 of 264 Page Intentionally Blank 238 June 7, 2018 Regular Board Meeting Agenda Packet- Page 365 of 446 Page 247 of 264 Supplemental Data and Glossary Supplemental Data and Glossary District Profile' Central San is proud to serve its customers in the San Francisco Bay Area, specifically, in the Central Contra Costa(Central County) region, at the heart of Contra Costa County about 30 miles northeast of San Francisco. Our service area is located at the foot of Mount Diablo (3,849 feet), which hosts a 90,000-acre State Park and foothills whose numerous hiking trails and open space preserves are frequently used by our residents. The desired residential communities are also some of the most historic. Martinez, where our headquarters is located, was a key crossing point over the Carquinez Strait for the Pony Express, and its downtown is notable for a large number of preserved historic buildings, including the John Muir National Historic Site. A short distance away, Walnut Creek boasts a revitalized shopping district with retailers and restaurants, one of many newer urban centers in our community. One of our largest customers, the City of Concord, is working on converting a former Naval weapons station into a Community Reuse Project, including the construction of parks, housing, office, and retail and the restoration of Mt. Diablo Creek. Central San is proud to be part of the effort to make the project as sustainable as possible by supplying recycled water for irrigation in this development. In recent years, the population of our service area in the Central County has boomed, partially due to our accessibility to San Francisco and Silicon Valley via public transit. Most of the population of Central Contra Costa lies along the busy I-680 corridor that connects the North Bay to Silicon Valley. Below is a table that shows the steady increase in population over the last ten years. Service Area Demographic and Economic Data BoundariesAs of Inside District Concord Total Served % Change January 1 2008 317,340 134,560 451,900 0.7% 2009 322,200 134,000 456,200 1.0% 2010 326,600 135,400 462,000 1.3% 2011 321,800 1 133,600 455,400 -1.4% 2012 326,900 134,200 461,100 1.3% 2013 332,600 134,900 467,500 1.4% 2014 335,009 135,856 470,865 0.7% 2015 339,029 137,357 476,386 1.2% 2016 340,667 140,916 481,583 1.1% F2017 344,591 139,654 484,2457- 0.6% 1 1 Adapted from http://www.eastbayeda.org/our-region/central-contra-costa.page 239 June 7, 2018 Regular Board Meeting Agenda Packet- Page 366 of 446 Page 248 of 264 Supplemental Data and Glossary Population by Community 2016As of 2010 January 1 Census Estimated r Population Alamo 14,570 16,078 Clayton I 10,897 11,655 Concord 122,067 126,938 Danville I 42,039 43,758 Lafayette 23,893 25,381 Martinez 35,824 37,544 Moraga 16,016 16,977 Orinda 17,643 I 18,936 Pleasant Hill I 33,152 34,395 San Ramon 72,148 74,366 Walnut Creek 64,173 67,568 Total Service Area (named cities above; actual 452,422 473,596 service area population differs) Contra Costa I 1,049,025 1,135,127 County Total * Source: https:Hfactfinder.census.gov/faces/tableservices/j sf/pages/productview.xhtml?src=bkmk Our largest customers are the City of Concord and various businesses, shopping centers,residential communities, schools, and hospitals. The tables below provide a window into our customer base. Fiscal Year 2016-17 Ten Largest Customers off- --,--F�perating Revenue Rank % of 4= Operating Revenue of Concord' $13,851,253 1 15.63% Contra Costa County General Service 2. 547,943 2 0.62% First Walnut Creek Mutual 462650 3 0.52% Park Regency Apartments 434,404 4 0.49% Second Walnut Creek Mutual Apartments 365,250 5 0.41% 240 June 7, 2018 Regular Board Meeting Agenda Packet- Page 367 of 446 Page 249 of 264 Supplemental Data and Glossary John Muir Health2 322,601 6 0.36% Sun Valley Mall 298,005 7 I 0.34% San Ramon Unified School District 225,339 8 0.25% Branch Creek Vista Apartments 194,800 9 0.22% Kaiser Foundation Hospital2- 186,281 10 0.21% Total $16,888,526 19.06% 'Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton. 2 Contra Costa County General Services,John Muir Health,and Kaiser are permitted industries. Active Service Accounts GroupNumber of 2016-2017 Residential Unit User TotalAccounts Equivalents Charge Billings Residential 113,045 $68,963,633 137,105 81% Mixed Use 213 2,669,727 5,308 3% Office 772 2,330,477 4,633 3% Food Service 234 2,120,572 4,216 2% Hotel/Motel 22 1,180,440 2,347 1% Government 174 87,0631 1,731 1% Market/Supermarket 48 851,179 1,692 1% Schools 251 841,767 1,673 1% Businesses 429 726,188 1,444 1% Automotive/Car Wash 241 630,563 1,254 1% Recreation/Entertainment 103 562,221 1,118 1% All Other User Groups 872 3,541,980 7,042 4% Total 116,404 $85,289,379 169,561 100% In Contra Costa County, the majority of which we serve, the largest employers are as follows: 241 June 7, 2018 Regular Board Meeting Agenda Packet- Page 368 of 446 Page 250 of 264 Supplemental Data and Glossary 2017 Ten Largest Employers in Contra Costa Count EmployersEstimated %of AL Employment Chevron Corporation 10,000+ 1 1.88% Bay Alarm Company 1,000-4,999 T-2 0.56% St. Mary's College 1,000-4,999 T-2 0.56% Bio-Rad Laboratories 1,000-4,999 T-2 0.56% Job Connections 1,000-4,999 T-2 0.56% John Muir Medical Center 1,000-4,999 T-2 0.56% Kaiser Permanente 1,000-4,999 T-2 0.56% La Raza Market 1,000-4,999 T-2 0.56% Martinez Medical Offices 1,000-4,999 T-2 0.56% Fu­SS-POSC0 Industries 1,000-4,999 T-2 0.56% AAA Northern California, Nevada and Utah 5,000-9,999 T-2 0.56% Bay Area Rapid Transit 1,000-4,999 T-2 0.56% All Others 495,400 91.96% Total 532,400 100.00% Mirroring our service area growth, Contra Costa County's population has seen a steady increase, as shown in the table below. 242 June 7, 2018 Regular Board Meeting Agenda Packet- Page 369 of 446 Page 251 of 264 Supplemental Data and Glossary Demographic and Economic Statistics in Contra Costa County —� Average Annual UnemploymentFiscal Year Ended Population' Personal Income'- Per Capita June 30 Personal Income - Rate 2- 2007 1,009,152 $59,823,135,000 $59,281 4.7% 2008 1,023,344 61,470,268,000 60,068 6.3% 2009 1,037,890 56,442,667,000 54,382 10.8% 2010 1,052,875 56,594,058,000 53,752 11.3% 2011 1,066,126 61,156,431,000 57,363 10.4% 2012 1,078,242 66,344,299,000 61,530 9.0% 2013 1,094,030 66,607,757,000 60,883 7.4% 2014 1,108,996 69,818,812,000 62,957 6.2% 2015 1,123,231 76,517,699,000 68,123 5.0% 2016 1,135,127 80,412,324,000 70,840 4.4% 1. Source:U.S.Department of Commerce,Bureau of Economic Analysis,estimates for 2010-2016 reflect county population estimates available as of April 2018. 2. Source: State of California,Employment Development Department(EDD),annual calendar figure. As shown in the above tables, the area in which we operate is a growing community which we are honored to provide our core services, as well as educational messaging to instill the environmental values which are foundational to us as an organization. 243 June 7, 2018 Regular Board Meeting Agenda Packet- Page 370 of 446 Page 252 of 264 Supplemental Data and Glossary Glossary of Terms Accrual Basis of The basis of accounting under which transactions are recognized when they occur, Accounting regardless of the timing of related cash flows. An example of accrual basis is occurs when an invoice is sent out for services: a receivable is booked and revenue is recorded even though no cash has been received at the time the invoice is mailed to the customer. (See Cash Basis of Accounting and Modified Accrual Basis of Accounting.) Administration District-wide and department operations costs incurred by administration support functions of Capital which are not directly charged to each capital project but allocated using a rate applied to direct labor dollars. Ad Valorem Tax Also referred to as Property Tax. A tax based on the assessed value of taxable property. Central San receives a portion of the ad valorem taxes levied by Contra Costa County on properties in the service area. Adopted Budget A balanced financial plan for a specific period authorized by the Board for expenditure or obligation. Amended An adopted balanced financial plan reflecting budgetary transfers that occurred since Budget adoption of the budget. The total budget amount must stay within the Board-approved appropriation limit. Appointment Indicates the character of a position. The following are examples of appointment types for Type Central San: Regular, District Temporary, and Consultant. Arbitrage Borrowing in one market (such as bonds) at one interest rate and investing in another market (such as certificates of deposit)at a higher interest rate. Such activities are highly restricted by the federal government, and any excess interest earned in this manner is not tax-exempt and is subject to rebate to the Federal Government. Asset An economic resource owned by the entity that is expected to benefit future operations. Examples of assets are: cash, investments, receivables, and capital or fixed assets. Authorized A position created and established by the Board. Position Balance Sheet See Statement of Net Assets, the current term. Board of The five public officials elected represent the District service area. Also known as the Board. Directors Bonds A written promise to pay a sum of money (principal or face value) at a future date (maturity date) along with a periodic interest amount paid at a specified percentage of the principal (interest rate). Bonds are typically used to finance long-term capital improvements. Debt service payments are made to repay the bond holders. Central San's goal is to limit debt- funded capital to no more than 60% of the total Capital Program over a ten-year period. Budget A plan of financial operation, embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates). Build America A type of municipal bond created under the American Recovery and Reinvestment Act of Bonds (BABs) 2009. These bonds are sold at a taxable rate rather than a lower tax-exempt rate, and Central San receives cash rebates from the U.S. Treasury to offset the higher interest cost. Capacity Fee Also called Facility Capacity Fee, this is a charge paid at the time of connection to compensate Central San for capital facilities that provide wastewater treatment(i.e., interceptors, primary and secondary treatment facilities, and wet weather treatment plants)to new connections. See Connection Fees and Pumping Capacity Fees. Capital Referring to the Sewer Construction Fund. Capital Board-approved funding for capital reference projects for which relatively accurate time Appropriation estimates can be made. Unspent appropriations carry forward to the next fiscal year. 244 June 7, 2018 Regular Board Meeting Agenda Packet- Page 371 of 446 Page 253 of 264 Supplemental Data and Glossary Capital Assets Land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. Capital Budget A financial plan for providing the purchase, construction, or rehabilitation of fixed assets such as equipment, facilities, and systems. The capital budget is usually enacted as a part of the complete annual budget, which includes both operating and capital outlays. The capital budget should be based on a longer-term capital improvement program (CIP). Capital Cash Projected cash disbursements for capital projects for a given time period. The estimated Flow capital cash flow is used to determine the amount of revenue required and the rate impacts, or the amount and timing of borrowings to meet the projected expenditure needs for a given time period. Capital Expenditures related to the purchase or construction of equipment, building structures, Expenditures aqueducts, and water/sewer pipelines that have a useful life greater than one year and a cost greater than $5,000. Capital A plan for capital expenditures to be incurred each year over a fixed period of several future Improvement years setting forth each capital project, identifying the expected beginning and ending date Plan (CIP) for each project, the amount to be expended in each year, and the method of financing those expenditures. Capital Labor The portion of labor costs supporting the capital improvement program. Cash Basis of A basis of accounting under which transactions are recognized only when cash changes Accounting hands. Cash Reserves Easily liquidated cash and investments available to meet operating, capital, self-insurance, and debt service obligations. Reserves may be restricted or unrestricted. The O&M and Capital Funds Available are unrestricted cash reserves, made up of cash and investments (see Funds Available and Funds Required). Central Contra A joint powers authority utilized by Central San as a long-term financing vehicle for its capital Costa Sanitary program. District Facilities Financing Authority (CCCSD FFA) Certificates of A form of financing used by municipal or government entities which allows an individual to Participation buy a share of the lease revenue of an agreement made by these entities. Comprehensive The CAFR is prepared at the close of each fiscal year to show the actual audited condition of Annual Financial Central San's funds and serves as the official public record of Central San's financial status Report(CAFR) and activities. Contra Costa The retirement association for 16 local agencies in Contra Costa County, including the County County itself. CCCERA's retirement benefit structure is based upon the County Employees Employees' Retirement Law (CERL) of 1937, commonly referred to as the "37 Act." Retirement Association (CCCERA) CCF One hundred cubic feet, which equals 748 gallons or one unit. Civil Service The system used for the selection, examination, employment, classification, advancement, System suspension, and discharge of employees. Applies only to Regular and Intermittent employees or employees who have attained civil service status but are working in a position excluded from the civil service. Collection Pipelines and pumping stations that convey wastewater from customers to the treatment System plant. 245 June 7, 2018 Regular Board Meeting Agenda Packet- Page 372 of 446 Page 254 of 264 Supplemental Data and Glossary Commercial Short-term financing for capital projects. Paper Connection Fees A fee charged when new or additional Residential Unit Equivalents (RUE) connect to the (Capacity Fees. sewer to contribute their fair share of service and facility costs. (See Capacity Fees and Facility Capacity Pumping Capacity Fees). Fees) Consent Decree An agreement or settlement to resolve a dispute between two parties. Cost of Service Equitably assigns cost responsibility to customers through rates and charges developed as Study part of the study. Credit Rating A rating assigned by a nationally recognized statistical rating agency, providing an indication to creditors of the ability of Central San to meet its financial obligations when due. Central San currently has credit ratings from two firms: Standard & Poor's and Moody's. A better credit rating allows Central San to borrow at a lower cost than a less favorable credit rating. Debt-Funded Expenditures for capital projects which are funded by bonds, state loans, or other debt. Capital Debt Policy A policy adopted by the Board that discusses when and how bonds and other forms of indebtedness may be used by Central San. Debt Service Expenditures for interest and principal repayment on bonds or other debt. Debt Service The ratio of net revenues to debt service requirements, calculated in accordance with bond Coverage documents. Central San's debt policy specifies that Central San will target a debt service coverage ratio of at least 2.0x. Central San's bond covenants require at least 1.25x coverage on a "gross revenue" basis and 1.00x on a net revenue basis. Debt Service One of four sub-funds of the enterprise fund used to account for Central San's operations. Fund This sub-fund accounts for activity associated with the payment of Central San's long-term bonds and loans. Defeasement Relieving the agency of a particular liability (such as a specific bond series) by refunding the liability through an escrow or trust fund. Legally defeased liabilities do not need to be appropriated each year as the trust fund is removed from the control of the agency. (Central San defeased its 1994 debt using 1998 Revenue Refunding Bonds.) Deficit The excess of expenditures or expenses over revenues during a single accounting period. Department A major organizational unit with overall managerial responsibility for functional programs. Distribution Wastewater treatment plants, storage reservoirs, pumping plants, pipelines, and System appurtenances that treat and transmit water to customers. District Code A system of rules, which are compiled and arranged by a municipal corporation, and are adopted and used to regulate the conduct of its inhabitants and government. District Temporary staffing positions who are restricted to working no more than 12 months, do not Temporary receive customary benefits, and do not have civil service status. Division A major organizational unit of a department. Most departments have several divisions, each providing different services. Effective Utility A framework developed in 2007 by the Environmental Protection Agency and water industry Management leaders that indicates where effectively managed water/wastewater utilities should focus. Encumbrance The obligated and unspent portion of a contingent liability established through a purchase order that is chargeable to an account. It ceases to be an encumbrance when it is paid by the recording of an invoice or a reduction of the purchase order's outstanding balance occurs. 246 June 7, 2018 Regular Board Meeting Agenda Packet- Page 373 of 446 Page 255 of 264 Supplemental Data and Glossary Enterprise In governmental accounting, these are used to account for self-sustaining activities that Funds derive the major portion of their revenue from user fees. Enterprise Fund Accounting is used operations financed and operated in a manner similar to business enterprises, and for which preparation of an income statement is desirable. Central San uses one enterprise fund with four"sub-funds"to better manage internal finances. The sub-funds are as follows: • Running Expense- (also referred to as Operations and Maintenance, O&M, or R/E) accounts for the general operations of Central San. Substantially accounts for all operating revenues and expenses. • Sewer Construction - (also referred to as Capital or S/C) accounts for non-operating revenues that are to be used for acquisition or construction of plant, property, and equipment. • Self-Insurance - (also referred to as S/1) accounts for interest earnings on cash balances and cash allocations from other funds, temporary investments, and costs of insurance premiums and claims not covered by Central San's insurance policies. • Debt Service A sub-fund that accounts for activity associated with the payment of Central San's long-term bonds and loans. Expenditure The payment of an obligation from Central San's cash amounts. Facility Capacity See Connection Fees above. Fees Fiduciary Fund A fund in which assets are held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, and/or other governmental units. There are four types of fiduciary funds: Pension (and other employee benefit), Investment, Private-Purpose and Agency. Fiscal Year The 12-month period that begins on July 1 and ends on June 30 of the following year. Full Time An employee who works full time counts as 1 FTE. Equivalent(FTE) Fund An independent fiscal and accounting entity with a self-balancing set of accounts, recording cash and/or resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. One type of government fund is an enterprise fund and is the only type of government fund used by Central San. Fund Balance Assets minus liabilities (also called net assets). (Net Assets) Funded Position Authorized position for which the Board has appropriated funding in a fiscal year. Funds Available The amount of cash and investments available in the O&M and S/C funds on June 30 of any (Central San fiscal year using the Funds Required definition below. term and definition) Funds Required Used in the 10-year planning process, this is the amount of money held in cash and (Central San investments (liquid assets)that is needed on June 30 of any fiscal year to meet cash flow term and needs through mid-December, when the first sewer service charge and property tax definition) payments are received from Contra Costa County. This includes Operations and Maintenance (O&M) and Sewer Construction Fund (S/C) cash and temporary investments; it does not include OPEB payments/accruals, Debt Service cash, reserve investments, or and Self-Insurance (S/1) Fund Cash and investments. 247 June 7, 2018 Regular Board Meeting Agenda Packet- Page 374 of 446 Page 256 of 264 Supplemental Data and Glossary Generally Generally Accepted Accounting Principles are the accounting rules that are required to be Accepted followed by organizations in the U.S. These Principles are established by two organizations: Accounting the Financial Accounting Standards Board for commercial and not-for-profit entities, and the Principles Governmental Accounting Standards Board for governmental entities in the United States. (GAAP) Governmental Governmental Accounting Standards Board is the body that specifies the accounting rules for Accounting governmental agencies in the U.S. The Board issues GASB statements that can require Standards Board significant changes to an agency's financial reporting. (GASB) GASB 45 An accounting requirement published in 2004 by the Governmental Accounting Standards Board (GASB)that addresses how the accounting and financial reporting for post- employment benefits other than pensions (OPEB) should be performed. This Statement establishes standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers. GASB 68 An accounting requirement of the Governmental Accounting Standards Board effective in 2014 that addresses Accounting and Financial Reporting for Pensions, which revises and establishes new financial reporting requirements for most state and local governments that provide their employees with pension benefits. General Fund An account used to record funds that are not legally restricted for specified purposes, such Reserves as those committed to repay obligations. General Fund Reserves provide for self-insurance claims, unplanned revenue changes, working capital, workers' compensation, and unanticipated contingencies. General The Chief Executive Officer of Central San, hired by the Board. Manager General When a government pledges its full faith and credit to the repayment of the bonds it issues, Obligations (GO) those bonds are general obligation (GO) bonds. Sometimes, the term is also used to refer to Bonds bonds which are to be repaid from taxes and other general revenues. Government Government Finance Officers Association represents public finance officials throughout the Finance Officers U.S. and Canada which provides best practice guidance, consulting, networking Association opportunities, publications, training programs, and recognition programs to its members. (GFOA) Goal The long-term continuing mission of a department, division, or program. Goals define the strategic results to be achieved and therefore indicate the relevance, permanence, scope, and effectiveness of that outcome. Household The service and facility operated by Central San providing for the safe disposal of items that Hazardous in the absence of this service could be inappropriately disposed of through the sewer system, Waste Collection risking pollution of the Bay. Facility Infrastructure The tangible physical components that ensure delivery of reliable, high-quality wastewater service now and in the future. Typical components are reservoirs, pumping plants, pipelines, and anaerobic digesters. Internal Control The plan of organization and all other coordinated methods and procedures adopted to safeguard assets; check the operations data; promote operational efficiency, economy, and effectiveness; and encourage adherence to prescribed managerial policies that will accomplish the objectives of the organization. Key Indicators with specific targets that measure how well Central San is progressing in achieving Performance its goals under the Key Metrics of the Strategic Plan. Indicators (KPI) 248 June 7, 2018 Regular Board Meeting Agenda Packet- Page 375 of 446 Page 257 of 264 Supplemental Data and Glossary Liability A debt of the business; an amount owed to creditors, employees, government bodies, others; a claim against assets. Modified Accrual The accrual basis of accounting adapted to the government fund type under which revenues Basis of are recognized when they become both "measurable" and "available to finance expenditures Accounting of the current period." Expenditures are generally recognized when the related fund liability is incurred. Modified Cash Income and expense accounting method that records revenue when cash is received and Flow Basis records expenses when cash is paid. Net Assets See Fund Balance. One-Time A revenue that cannot reasonably be expected to continue, such as a single-purpose federal Revenue grant, an interfund transfer, or use of a reserve. Continual use of one-time revenues to balance the annual budget can indicate that the revenue base is not strong enough to support current service levels. Operating Board-approved funding for operating expenses. Unspent appropriations do not rollover to Appropriation the next fiscal year. Operating A financial plan to fund ongoing operations costs incurred to operate Central San, excluding Budget the building of capital assets. which are included in the capital budget. Operating Deficit When current expenditures exceed current revenues. Operating The three units of Central San that carry out the mission of the agency: Administration, Departments Engineering &Technical Services, and Operations. Operating Labor The portion of Central San's labor costs supporting day-to-day operations. Operating & One of four sub-funds of the enterprise fund uses to account for Central San's operations. Maintenance This fund provides for the general operations, maintenance, and administration of Central (O&M) Fund San. Also referred to as the "Running Expense"fund. Organization A group of staff organized into one unit or section working under a division or department. This is the lowest level at which operating budgets are developed. Other Post- In addition to pensions, many state and local governmental employers provide other post- Employment employment benefits (OPEB)as part of the total compensation offered to attract and retain Benefits (OPEB) the services of qualified employees. OPEB includes post-employment healthcare, as well as other forms of post-employment benefits (e.g., life insurance)when provided separately from a pension plan. Overhead Administrative Overhead and Non-Work Hours include indirect costs and the value of time off (Administrative (holidays, sick leave, vacation, etc.). These costs are expressed as a percent of salary. For Overhead and Central San accounting, salaries and benefits are separate from overhead (whereas Non-Work consulting firms typically view employee benefits in "overhead"). Indirect costs are costs that Hours) are incurred for a common or joint purpose benefiting more than one cost objective or task and are not readily assignable. Pay As You Go A term used to describe paying expenses as they are incurred, as opposed to pre-paying, (or PAYGO) pre-funding, or setting money aside for future expenses. Used primarily to refer to the strategy of paying for capital projects. Public California's Public Employees' Pension Reform Act, established a new less costly retirement Employees' tier for employees newly hired or which did not have prior service with a reciprocal retirement Pension Reform system prior to January 1, 2013. Act (PEPRA) Performance Specific quantitative measures of work performed within an activity or program (e.g., total Measures miles of pipes cleaned). Also, a specific quantitative measure of results obtained through a program or activity (e.g., reduced incidence of vandalism due to a new street lighting program). 249 June 7, 2018 Regular Board Meeting Agenda Packet- Page 376 of 446 Page 258 of 264 Supplemental Data and Glossary Program Broadly defined group of related reference projects combined to facilitate planning and decision making. Project or Project level identified in the CIP comprised of a discrete set of tasks that can be carried out Reference independently but require coordination with other projects to ensure overall program Project success. Appropriation requests and projected cash flows are authorized at this level. Proposed The recommended balanced financial plan for a specific period of time submitted for Budget consideration to the Board prior to the start of the Proposition 218 notification process. Proprietary Fund Proprietary funds are used to account for a government's ongoing organizations and activities that are similar to businesses found in the private sector. These funds are considered self-supporting in that the services rendered by them are generally financed through user charges or on a cost reimbursement basis. There are two types of proprietary funds: Enterprise and Internal Service. Pumping A component of connection fees for units that are located in areas tributary to one or more of Capacity Fees Central San's pumping stations. (See Capacity Fees and Connection Fees.) Rate (or Cash) Annual operations and maintenance expenses as well as the portion of the capital program Funded that are funded from current revenues. Expenditures Rates Charges for services to customers that cover the costs of such services while allowing Central San to remain reserve neutral. Regular Position Full-time, civil service positions. Reserve Policy A document outlining minimum reserve thresholds, identifying current and potential reserves, and explaining what reserves are, or will be used for. Reserves See Cash Reserves. Residential Unit A measure of sewage volume and strength equivalent to a typical residential household. Equivalent (RUE) Restricted Monies that, by action of the Board, State Law, or Bond Covenants, are required to be spent Reserves on specific programs or held for specified purposes. Restricted Monies that are legally earmarked for a specific use, as may be required by state law, bond Revenue covenants, or grant requirements. For instance, capacity fees must be used within the Sewer Construction Fund; the revenue cannot be transferred to O&M. Revenue Monies received from rates, charges, and other sources. Revenues are used to pay for expenditures. Revenue Bonds Bonds (instruments and indebtedness) issued by the public sector to finance a facility or equipment purchase, which, unlike general obligation bonds, are not backed by the full faith and credit of the government. Instead, their revenues are generated from the facility or equipment that they finance. Because they are state or local government bonds, their interest earnings are typically tax-exempt under the Internal Revenue Code. Revenue- Expenditures on capital projects which are funded by revenues of Central San rather than by Funded Capital debt, grants, or other funds. 250 June 7, 2018 Regular Board Meeting Agenda Packet- Page 377 of 446 Page 259 of 264 Supplemental Data and Glossary Service Area The cities and areas served by Central San, including Lafayette, Orinda, Moraga, Danville, Alamo, Walnut Creek, Pacheco, and portions of San Ramon and Martinez. Concord's residents' and businesses' wastewater is collected by that City and treated by Central San through a contractual arrangement; therefore, Concord is considered to be in Central San's service area. (Also called Service Territory). Self-Insurance One of four sub-funds of the enterprise fund used to account for Central San's operations. Fund This fund covers the cost of claims not covered by Central San's insurance coverage, the cost of insurance premiums, interest earnings on the fund, and other associated costs. Sewer One of four sub-funds of the enterprise fund used to account for Central San's operations. Construction This sub-fund provides for the treatment plant and collection system renewal and (Capital) Fund replacement expenditures, as well as office facilities renewal, vehicle and equipment (S/C) replacement, information systems replacement, and miscellaneous capital expansion needs. Strategies, The key components of the Strategic Plan that specify the overall goals in the coming years, Initiatives, consisting of the Strategies (highest level objectives), Initiatives (how the strategies will be Metrics (SIM) achieved), and Metrics (measurements of progress). Sinking Fund A method by which a government may set aside money over time to pay for a project or obligation. Staffing Plan The classes and positions that have been authorized by the Board and have been determined necessary to carry out Central San functions. Central San's current staffing level is based on a 2015 Organization and Staffing Plan, which resulted from a study conducted by Raftelis Financial Consultants, recommending 290 FTE positions. Strategic Plan The document that provides a blueprint for how Central San will respond to future challenges and changing priorities over a two-year period. It outlines specific goals, strategies, and objectives to guide Central San and establishes criteria to measure progress. Strategy Highest level of capital improvement activities, generally a grouping of related programs. Represents key capital objectives as defined in the Mission Statement, Strategic Plan, and Board policies and directives. Statement of Net A statement reporting the present financial position of an entity by disclosing the value of its Assets (Balance assets, liabilities, and equities as of a specified date. Assets minus liabilities equal fund Sheet prior to balance (also called Net Assets). GASB 34) Subsidy Relating to Build America Bonds (BABs), the subsidy payment represents funds from the Payment federal government to offset part of the interest cost paid by Central San as the issuer of bonds. The BABs were issued in 2009 in lieu of traditional tax-exempt debt. Central San pays a taxable rate of interest to investors, investors pay the Federal Government Income Tax on that interest, and the federal government remits a specified percentage of the interest payment to Central San. Unfunded The difference between the actuarial accrued liability and the actuarial value of assets Actuarial accumulated to finance that obligation. This is a term used in connection with pension plans Accrued Liability or commitments to provide other post-employment benefits (OPEB)to employees. (UAAL) Unfunded Liability that has been incurred during the current or a prior year, that does not have to be Liability paid until a future year, and for which reserves have not been set aside. This is similar to a long-term debt, in that it represents a legal commitment to pay at some time in the future. Vacancy Factor Recognizing that not all Funded Positions will be occupied throughout a fiscal year, this allowance reduces budgeted funding to reflect such vacancies. While positions are vacant, some costs are incurred on occasion for temporary staff or consulting resources, reducing the vacancy factor. 251 June 7, 2018 Regular Board Meeting Agenda Packet- Page 378 of 446 Page 260 of 264 Supplemental Data and Glossary Acronyms and Abbreviations in the CIB/CIP Acronyms and Abbreviations in the CIB/CIP Acronyms and Abbreviations in the CIB/CIP AB Assembly Bill 1/0 Input and Output GIS-based Asset Integrity Management and Capital Planning ADA Americans with Disabilities Act InfoMaster Tool New Sewer System Hydrodynamic A/N Aeration and Nitrification InfoWorks Model ATS Automatic Transfer Switch IT Information Technology BAAQMD Bay Area Air Quality Management District MCC Motor Control Center BACWA Bay Area Clean Water Agencies MGD Million Gallons per Day Board Board of Directors MPR Multi-Purpose Room Contractual Assessment District or National Association of Clean Water CAD Computer Aided Design NACWA Agencies (formerly AMSA) National Pollutant Discharge CBC California Building Code NPDES Elimination System CCRP Concord Community Reuse Project 08' M Operations& Maintenance CCTV Closed-Circuit TV PG&E Pacific Gas& Electric Company CCWD Contra Costa Water District PLC Programmable Logic Controller Program Management Information CEPT Chemically Enhanced Primary Treatment PMIS System CEQA California Environmental Quality Act POB Plant Operations Building CIB Capital Improvement Budget POD Plant Operation Division Capital Improvement Plan-covers 10 CIP years PS Pumping Station CIPP Cured-in-Place Pipe PVC Polyvinyl Chloride Computerized Maintenance Management Risk Analysis and Management for CMMS Systems RAMPCAP J100 Critical Asset Protection CO Carbon Monoxide R&R Rehabilitation & Replacement Cogen Cogeneration RW or ReW Recycled Water CSO Collection System Operations RWQCB Regional Water Quality Control Board Supervisory Control and Data CWMP Comprehensive Wastewater Master Plan SCADA Acquisition DP District Project SCB Solids Conditioning Building EIR Environmental Impact Report SCVWD Santa Clara Valley Water District ERP Enterprise Resource Planning W SSC Sewer Service Charge Contra Costa County Flood Control and FCD Water Conservation District SSO Sanitary Sewer Overflow FY Fiscal Year-July 1 through June 30 SWRF Satellite Water Recycling Facility GDI Geographic Data Integration TP Treatment Plant GHG Greenhouse Gas UPS Uninterruptible Power System GIS Geographic Information Systems UV Ultraviolet HMI Human Machine Interface V Volt HOB Headquarters Office Building VFD Variable Frequency Drives Water Environment& Reuse ICM Integrated Catchment Modeling WE&RF Foundation 252 June 7, 2018 Regular Board Meeting Agenda Packet- Page 379 of 446