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HomeMy WebLinkAboutCAPITAL PROJECTS AGENDA 03-18-08 ()Jmm h'l0 Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, Cil. 94553-4392 (925) 228-9500 . wwwcentlalsan org CAPITAL PROJECTS COMMITTEE Chair Menesini Member Hockett Tuesday, March 18, 2008 3:00 p.m. Third Floor Executive Conference Room Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, CA 1. CALL MEETING TO ORDER 2. PUBLIC COMMENTS 3. CAPITAL PROJECTS COMMITTEE MEETING * a. Review FY 2008-09 Equipment Budget: 1) Administrative - Director of Administration Randy Musgraves 2) Collection System Operations - Director of Collection System Operations Bill Brennan 3) Plant Operations - Director of Plant Operations Doug Craig 4) Vehicles - Director of Collection System Operations Bill Brennan b. Review FY 2008-09 Information Technology Development Plan (Included in Attachment for Item c.) -IT Administrator Mark Greenawalt *c. Review FY 2008-09 Capital Improvement Budget and Ten-Year Plan- Director of Engineering Ann Farrell and staff (Note: User friendly CIB/CIP summary document with project highlights, as suggested by the Committee, is under preparation and will be available at the Committee meeting for review.) 4. REPORTS/ANNOUNCEMENTS 5. ADJOURNMENT * Attachment A ~, Recycled Paper 200&09 ~ Central Contra Costa , Sanitary District ... Iftd Tln-v. Executive Summary , Central Contra Costa Sanitary District Capital Improvement Program Executive Summary Central Contra Costa Sanitary District funds an extensive Capital Program designed to preserve, maintain and enhance the District's assets, accommodate the community's needs, and protect the environment. Capital improvements/capital projects are major construction, acquisition or renovation activities which add value to the District's fixed assets (buildings, pipelines, facilities, equipment) or significantly increase their useful life. The District's Fiscal Year 2008-09 Capital Improvement Budget details expenditures of approximately $39 million for the planning, design and construction of capital projects. By adopting the Capital Improvement Budget, the Board of Directors authorizes staff to pursue this work. In addition to the Capital Improvement Budget for the upcoming year, the Board approves a Ten-Year Capital Improve- ment Plan that forecasts needed expenditures for ten years into the future. This plan focuses on renovation, expan- sion and regulatory requirements. Its estimated expenditures for the next ten years are $340 million (in 2008 dollars), an average of $34 million per year. The Capital Improvement Budget and Ten-Year Capital Improvement Plan also include projected revenues and cash- flow analyses to demonstrate how planned expenditures will be funded. The projections assume revenue potential and make up deficits through a combination of drawing on reserves and raising the capital component of the annual sewer service charge paid by each new connection to the sewer system. Each planned project addresses one or more of these District goals: . Protect public health and the environment . Maintain existing assets . Respond to regulatory and community concerns . Accommodate planned growth This summary describes the major projects for fiscal year 2008-09, the major projects included in the Ten-Year Capital Improvement Plan, and the revenue streams that will support the planned expenditures. FY 2008-09 Capital Improvement Budget The FY 2008-09 Capital Improvement Budget shows expenditures of approximately $39 million ($38,858,000) for the planning, design and construction of capital projects categorized into four programs: . Treatment Plant . Collection System ram . Generallmprovements . Recycled Water Each of those programs is subdivided into subprograms. Most of the money will be spent on renovation or preservation of capital assets, as shown in the following table: Planned Expenditure For FY 2008-09 $12.7 million 33% $ 2.2 million $ 4.9 million $ 4.8 million $ 0.3 million $ 0.4 million $22.4 million 57% $ 8.3 million $ 0.3 million $12.5 million $ 1.2 million $ 3.4 million 9% $ 0.9 million $ 0.8 million $ 0.7 million $ 1.0 million $ 0.4 million $39.0 million In FY 2008-09, 75 percent of the budgeted $39 million will be for the following 18 large projects. Treatment Plant Plant Site Improvements: As in any industrial facility, heavy use, time and weather deteriorate pavement. This project will restore and preserve areas of paving throughout the plant site, add new paving as appropriate, correct drainage deficiencies, replace deteriorated fences and gates, and 2 enhance visual appearance through landscaping. In addition, handicap accessibility will be improved, and a new conduit for fiber optic communications will be installed. ($1,500,000 FY 08-09; $2,500,000 estimated total project cost) Aeration Air Renovations: The existing aeration tanks were installed in the mid 1970s. Since then, numerous cracks and air leaks have developed. This air loss, if allowed to continue, could undermine the structural integrity of the aeration tanks and represents a significant energy cost. Several techniques to repair the cracks were evaluated in prior years. This project will allow the successful technologies to competitively bid for the repair work. A future phase of the project may require a complete replacement of the air delivery system of the secondary aeration system. ($1,000,000 FY 08-09; $2,100,000 estimated total project cost) Aeration Piping Renovations and Replacement, Phase 4: Since the inception of the treatment plant facilities in 1948, numerous piping systems have been installed that carry processed waste- water, sludge, steam, air, and other constituents. Over time, these pipes fail due to corrosion and erosion. This multi- phase program replaces piping that has reached the end of its useful life. Phase 4 will focus on ash piping, furnace gas piping, diesel piping, return activated sludge piping, and chemical piping. ($1,800,000 FY 08-09; $1,800,000 estimated total project cost) Primary Structures Demolition: This project will demolish the abandoned primary sedimentation tanks constructed in 1948 and 1957 and backfill the area. It will also demolish the unused lime storage silos, building, and associated piping systems. Additional obsolete facilities may be included in this project based on further evaluations. This work will increase safety around the abandoned tanks and allow for future expansion of related facilities. ($1,100,000 FY 08-09; $1,400,000 estimated total project cost) 3 Treatment Plant Asset Management Plan: Replacement value of the current treatment plant facilities is conservatively estimated at $600 million. This includes all mechanical and electrical equipment, piping systems, concrete structures and buildings, access roads, etc. All of these components have a finite useful life. The purpose of the Asset Management Plan is to develop a systematic approach to identifying, prioritizing and funding replacement projects. The first step documents completed projects and institutional knowledge within the various processes of the treatment plant, and will be continued. The second step, to be initiated in FY 08/09, will assess the conditions of treatment plant processes, systems, equipment, and structures. ($1,000,000 FY 08-09; $1,200,000 estimated total project cost) Standby Power Facility Improve- ments: This project will replace the standby power units with generators that meet new air quality regulations, increase runtime to meet operational requirements, and improve overall reliability. The standby power generator building will also be brought into compliance with the latest Uniform Building Code. ($1,200,000 FY 08-09; $6,800,000 estimated total project cost) Solids Handling Improvements: A major recommendation of the 2005 Solids Handling Facilities Plan was to upgrade the equipment for handling biosolids (sludge) during emergencies (furnace failure) or non-routine operations (e.g., spikes in solids productions) that exceed the capacity of one of the furnaces. This project will design and construct a sludge truck loading facility with a sludge cake hopper (and odor control facilities) to store sludge generated during overnight hours when hauling to landfills is not possible. Contracts with local landfills will be executed for disposal of biosolids on an intermittent basis. ($1,054,000 FY 08-09; $6,500,000 total estimated project cost) Scrubber Water Mercury/Metals Removal: This project will modify the multiple-hearth furnace facility to increase sustainable solids processing capacity, maximize the use of alternative fuels to minimize greenhouse gas emissions, and decrease emissions of mercury, other heavy metals, and cyanide. A pilot study is being performed to determine the effectiveness of various air pollution control methods. ($1,000,000 FY 08-09; $20,300,000 estimated total project cost) Photo 4 Collection System TV Inspection Program: This is a large- scale multi-year effort to inspect the entire collection system using closed- circuit TV cameras, digital imaging and database software. A publicly bid inspection contract using digital imaging and database software is awarded each year. The new contractor's data is being integrated with existing inspection and sewer information databases, which is then used to identify and prioritize sewer replacement and renovation needs. Currently sewers in Danville/Diablo are being televised with sewers in Alamo and Moraga to follow. ($900,000 FY 08- 09; $5,600,000 estimated total project cost) Walnut Creek Sewer Renovation Project, Phase 6: This ongoing project (which may include up to 15 phases) will replace or renovate deteriorating or deficient sewers in Walnut Creek. Phase 6 will renovate approximately 10,000 feet of deficient sewers at 10 sites using open cut and various trench less technologies. Construction of this phase is expected to start in June 2008 and be finished by February 2009. ($1,800,000 FY 08-09; $2,200,000 estimate total project cost) Lafayette Sewer Renovation Project, Phase 5: This ongoing project will replace or renovate deteriorating or deficient sewers in Lafayette. Phase 5 will renovate approximately 11,000 feet of sewers at 10 sites using open cut and various trench less technologies. Construction of this phase is expected to start in June 2008 and finish by February 2009. ($1,500,000 FY 08-09; $1,700,000 estimated total project cost) 5 Martinez Sewer Renovation Project, Phase 2: This ongoing project will install, replace or renovate deteriorating or deficient sewers in Martinez. Phase 2 will renovate approximately 5,000 feet of sewers using open cut and various trench less technologies. Construction of this phase is expected to start in June 2008 and finish by January 2009. ($1,200,000 FY 08-09; $1,400,000 estimated total project cost) South Orinda Sewer Renovation Project, Phase 3: This ongoing project will renovate deteriorating sewers in Orinda. Phase 3 will renovate approxi- mately 10,000 feet of sewers at 10 sites south of Highway 24 using trenchless technologies. Construction of this phase is expected to start in July 2008 and finish by February 2009. ($1,200,000 FY 08-09; $1,400,000 estimated total project cost) A-Line Relief Interceptor, Phase 2A: This project will increase capacity and reduce the potential for wet-weather overflows in the A-Line Relief Interceptor. It entails building 3,000 feet of 96-inch pipe from Buchanan Fields Golf Course to the intersection of Meridian Park Boulevard and Galaxy Way. An additional 1 ,300 feet of 48-inch through 72-inch pipe will be installed along Galaxy Way, then across Walnut Creek to the City of Concord Pumping Station. The project will also eliminate the need for the pumping station. To minimize construction impacts, 4,000 feet of pipe will be installed by tunneling. Construction is expected to begin in March 2008 and finish in January 2009. ($8,125,000 FY 08-09; $20,000,000 estimated total project cost) "Map" of Camino Pablo sewer line... Camino Pablo Trunk Sewer and Flush Kleen Force Main Improvements: This project will replace gravity sewers and two pumping station force mains within Camino Pablo and the Camino Pablo frontage road, from Miner Road north to the Flush Kleen pumping station, using open-cut and pipebursting methods. Construction and traffic control details will be closely coordinated with the City of Orinda. Construction is expected to start in June 2008 and finish by December 2008. ($1,850,000 FY 08-09; $2,200,000 estimated total project cost) 6 Alhambra Valley Assessment District Program: This project will assist Alhambra Valley property owners currently using septic tanks by financing the cost of extending and connecting to the public sewer. It will also help to avoid future use of septic systems and sewage pumping systems in Alhambra Valley; and facilitate direct and indirect connections to the Alhambra Valley trunk sewer so the District's expenditures associated with the trunk sewer extension can be reimbursed more quickly. ($1,000,000 FY 08-09; $2,000,000 estimated total project cost) 2008-09 Development Sewerage: This project will provide capitalization of District force account labor and other expenses for planning, designing, and constructing developer-installed and contributed main sewer facilities. ($1,180,000 estimated total project cost) General Improvements Collection System Operations Department Facility Improvements: This project will design and construct a new administration, crew and warehouse building, and provide new paving and landscaping at the Collection System Operations facility in Walnut Creek. The District will obtain permits from the City of Walnut Creek and address any City requirements prior to construction. ($700,000 FY 08-09; $14,100,000 estimated total project cost) Illustration of new CSO facility... 7 Ten-Year Capital Improvement Plan The District develops a Ten-Year Capital Improvement Plan each year which provides the information needed to formulate long-range policy regarding: · Identifying, prioritizing, and scheduling capital projects for the ten-year period. · Providing financial resources for completing those capital projects. The plan covers FY 2008-09 through FY 2017-18 and includes total expenditures of approximately $340 million (in 2008 dollars), or an average of $34 million per year, as described in the following table: Dollars $180 million $110 million Percent 53% 32% $ 38 million $ 16 million $340 million 11% 4% 100% The plan is divided into the same four programs as the budget. While a large portion of the plan is devoted to ongoing renovation, several projects address capacity and regulatory issues. The following table lists total ten-year expenditures by program and subprogram. A brief description of the major projects/programs not described under the FY 2008-09 Capital Improvement Budget section follows the table. Capital Program/Subprogram 8 Planned 10 Year Ex enditure $121.6 million 36% $ 31.9 million $ 24.3 million $ 36.2 million $ 28.4 million $ 0.9 million $178.2 million 53% $ 91.3 million $ 1.9 million $ 72.8 million $ 12.2 million $ 35.2 million $ 9.9 million $ 5.8 million $13.1 million $ 6.4 million $ 4.3 million 1 % Maior Treatment Plant Proiects/Proarams Electric Blower Renovations: The electric blower serves as a backup to the plant's two steam powered turbine blowers. Its capacity is adequate during winter months, but not during summer months when the plant's demand for air increases. This project will design and install a new, higher capacity blower. (Construction FY 12-14; $3,825,000 estimated total project cost) Centrifuge and Cake Pumps Upgrades: This project will upgrade the treatment plant's centrifuges and cake pumps, which will have been in service for more than 20 years by 2010. The design life of rotating equipment is generally around 20 years. While routine rotation of the operational and stand-by centrifuge helps increase the operating lifespan, as the equipment continues to age the operation and maintenance requirements become extensive. (Construction FY 12-13; $4,150,000 estimated total project cost) Primary Expansion: This project will add two primary sedimentation tanks to increase the treatment plant's wet- weather capacity to approximately 270 million gallons per day (62.5 mgd dry weather capacity with one tank out of service). The new tanks will provide additional operational flexibility, reduce the amount of raw wastewater bypassed to the holding basins during heavy rain storms, and decrease the potential for associated odor issues. This project will also upgrade the existing primary sedimentation tanks, pre-aeration tanks and grit-handling system. (Construction FY 16-18; $26,210,000 estimated total project cost) Recurring Renovation: Replacement value of the current treatment plant facilities is conservatively estimated at $600 million. This includes all mechanical and electrical equipment, piping systems, concrete structures and buildings as well as access roads, etc. All of these components have a finite useful life. In order to maintain the facilities in top operational condition, the Ten-Year Capital Improvement Plan sets aside funds for recurring renovation (Ten year plan; $36,154,000) 9 Maior Collection System Proiects/Proarams Sewer Renovation: In 2002 the District initiated a long-term program to televise all 1 ,447 miles of its gravity sewers. To date the program has televised approximately 578 miles of main sewers. The results indicate that approximately 4.6 percent, or almost 29 miles of pipes, are in poor condition. Extrapolating the data to the entire collection system shows 72 miles of sewer mains in poor condition, with a replacement cost of $123.5 million. The current ten-year plan targets approximately 44 miles of pipe for renovation/ replacement. (Ten year plan; $91,284,000 estimated total project cost - includes TV program, large diameter pipe renovation and cathodic protection) Sewer Capacity: Periodically the District updates the Collection System Master Plan to identify capacity deficiencies, which are prioritized and scheduled for replacement in the Capital Plan. Presently, the Collection System Master Plan is being updated to reflect recently approved land use and new flow monitoring data. The Capital Plan will be updated to reflect the new results. (Ten year plan; $61,000,000 estimated total project cost) Photo 10 Potential Future Proiects Not Included in Ten-Year Capital Improvement Plan The Ten-Year Capital Improvement Plan budgets $38 million (11 percent of the planned ten-year expenditures) for regulatory-driven projects. However, this does not tell the entire story. There are a number of potential projects that may be required to meet regulations that are under consideration but have not yet been enacted into law. The following table shows these potential projects and the estimated probability (low, medium or high) of their being necessary. If these expenditures become necessary, additional revenues not currently identified in the ten-year plan will need to be generated, or other needed projects will need to be deferred. Time Estimated Estimated Description Frame Total Project Probability Cost Treatment Plant: Hydraulicl Process Capacity Filter Plant Expansion - Provide facilities to filter secondary effluent during dry and wet $135-150 weather to meet new regulations such as metals 3-15 yrs million Medium reduction or provide additional effluent for water recycling. Nutrient Removal - Provide facility for nutrient 10-20 $50 million Low removal (nitrogen and phosphorus). yrs Nitrification - Provide facilities for nitrification (convert ammonia to nitrate). This project is 5-10 yrs $50 million Medium partially funded in the latter years of the Plan. Treatment Plant: Solids Handling Sludge Treatment Replacement - Implement anaerobic digestion or thermal drying if future 3-15 yrs $30-50 million Low regulations prohibit incineration. Incinerator Emissions - The EPA is currently considering stricter regulation of air emission 3-10 yrs $30 million Medium from sewaQe sludQe incinerators. Treatment Plant: Other Projects Air Emissions Projects - Provide processes to control air toxics and odors and construct tank 5-10 yrs $25-30 million Low covers (primary and/or secondary processes to capture air emissions ). Greenhouse Gas Reduction - Construct alternative energy projects to reduce or provide 5 yrs $25-50 million High offsetting credits for greenhouse gas emissions. Collection System: Regulatory Response Sewer System Management Plan Projects - The SF Bay Regional Water Quality Control Board and State Water Resources Control Board 1-5 yrs $5 - $10 million Medium require a Sewer Maintenance Management Plan. per year The requirements may necessitate an escalated capital program to televise and renovate sewers. ] ] Capital Revenue/Cash Flow/Sewer Construction Fund Balance The Capital Program is funded by a number of different fees and charges as described below. Figures 1 & 2 depict the relative magnitude of these revenue sources from the Capital Improvement Budget and Ten-Year Capital Improvement Plan perspectives. Facility Capacity Fees: A facility capacity fee is paid by each new connector to the District's collection system. This fee is recalculated each year and represents the cost of buying into the existing assets of the District. The revenue from these fees is highly dependent on the housing market and the rate of new connections. Pumped Zone Fees: For new connections located in an area where pumping is necessary, an additional facility capacity fee is charged to buy into the existing pumping station assets of the District. The revenue from the pumped zone fees is also highly dependent on the housing market and the rate of new connections. Property Taxes: Historically, some enterprise districts have levied a property tax rate to cover part of their costs. In 1978, when Proposition 13 reduced the taxation rate on property, the State Legislature urged enterprise special districts to shift to user fee financing. In FY 1992-93, the State of California began diverting portions of the property tax revenue. The District still receives a significant amount of property taxes which are allocated entirely to debt service and the Capital Program. If those taxes were to be permanently diverted, a significant increase in other forms of revenue, particularly the sewer service charge, would be necessary. Sewer Service Charges: The sewer service charge is an annual charge placed on the property tax rolls which funds operation and maintenance costs as well as a portion of the Capital Program. Each year the capital revenue from all other sources is estimated, and the additional revenue needed to fund the planned expenditures is generated by increasing the capital component of the sewer service charge as needed. Reimbursements from Others: The District receives reimbursements from others for capital expenditures which benefit others. For example, the City of Concord is served by a contract which requires them to pay a flow-proportional share of capital projects which benefit Concord (such as projects to improve wastewater treatment facilities and large interceptors). The District also has formed Assessment Districts to promote the installation of sewers in un-sewered areas and has set up loaned money from the Sewer Construction Fund, along with reimbursement accounts to return these revenues, with interest, to that fund. Interest: Interest is earned on the balance of the Sewer Construction Fund, the money held in reserve to fund future capital projects. The interest earned is returned to the fund. Bond Proceeds: While the District generally follows a pay-as-you-go philosophy, sewer service charge rate increases can be mitigated when large, one- time projects are required by utilizing bond funding to spread the payments over time. ]2 Figure 1: FY 08-09 Capital Budget Revenue ($1,000) Facilities . Capacity & sewCehr Service Pump Zone Fees a~e 0 8,510 (22.2%) 7,375 (19.3 Yo) 'U~ ... All Other Interest ,. ~ 979 (2.6%) 1,500 (3.9%) nD Taxes ~ Concord* 8,636 (22.6)% 11,264 (29.4%) *Concord revenue unusually high due to reimbursements for Concord project executed by the District. Figure 2: Ten-Year Capital Plan Revenue ($1,000) Facilities Capacity & Pump Zone Fees 63,900 (17%) Sewer Service .__ All Other Charge .... 15,445 (4.1%) 85,000 (22.6%) ~ ~ Concord Interest ~ 44,604(11.9%) 19,600 (5.2%) "--/ Bond Proceeds 27,500 (7.3%) Taxes 120,700 (32)% 13 As part of the Ten-Year Capital Improvement Plan, estimates of expenditures and revenues are made and a cash flow projection developed to show the interrelationship of revenues and the Sewer Construction Fund balance. Each year a policy decision is made by the Board of Directors, based on staff analysis and recommendations, regarding the rate at which the capital component of the sewer service charge should be set to fund the planned Capital Program while maintaining an adequate Sewer Construction Fund balance. The Sewer Construction Fund balance is needed for future capital projects. It also acts as the bank to meet the District's cash flow needs. To provide sufficient funds for cash flow needs, a balance of approximately $30 million is recommended for the Sewer Construction Fund. The following table shows cash flow projections for the next ten years, including planned expenditures, revenues needed to fund the expenditures, and the utilization of the Sewer Construction Fund. This table includes an inflation factor of 3 percent per year and therefore the expenditure numbers will be slightly higher than those included in the Ten- Year Capital Improvement Plan section of this document. Sewer Construction Fund Cash Flow Projection ($1,000\ Expenditures Net Fund FY Revenue Treatment Collection General Recycled Subtotal Increase Balance 1 Plant System Imp. Water (Decrease) (Projected) 08 38,264 12,680 22,355 3,418 405 38,858 (594 47,173 09 33,299 14,042 17,884 10,028 417 42,371 (9,072 38,101 10 36,812 23,730 18,410 7,695 430 50,264 (13,452 24,649 11 32,987 8,595 18,906 2,430 443 30,375 2,612 27,261 12 33,600 7,710 19,471 2,879 445 30,505 3,095 30,356 13 34,413 7,608 20,055 2,312 458 30,433 3,980 34,336 14 35,825 7,878 20,657 2,350 472 31,357 4,468 38,804 15 35,812 8,624 21,277 2,420 537 32,859 2,953 41,758 16 37,871 20,914 21,915 2,340 547 45,716 (7,845) 33,912 17 57,6372 20,092 22,573 2,871 770 54,305 3,332 37,244 1 Ending fund balance on June 30,2008 is estimated at $47,767. 2 $27,500 from bond proceeds. As shown, the Sewer Construction Fund balance acts in concert with the various revenue sources to fund the Ten-Year Capital Improvement Plan. This cash flow projection assumes the sewer service charge capital component is increased each year as necessary to fund the planned expenditures and maintain the Sewer Construction Fund balance at appropriate levels. 14 ! a... Central Contra Costa Sanitary District March 4, 2008 TO: et Recipients FROM: VIA: Jim Kelly SUBJECT: 2008-2009 Equipment Budget Enclosed is a copy of the 2008-2009 Equipment Budget, which will be discussed at the Capital Projects Committee Meeting on March18, 2008 at 3:00 p.m. in the third floor Executive Conference Room. Any changes resulting from the committee meeting will be incorporated prior to approval by the full Board on April 17, 2008. H.\Equiprnent Budget\DistributionMemo.doc