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Home My WebLink About4/13/2006 AGENDA BACKUP2006 -07 Capital Improvements Program Workshop April 13, 2006 2006 -07 Capital Improvements Program Workshop Agenda • Financial /Human Resources Deliver Projects — Review historical program activity and accomplishments — Discuss need for additional authorization for 2005 -06 program — Revisit revenue projections and ability to fund needed projects • Strategic Goals Drive Projects — Review progress on strategic technical issues — Review programs and selected 2006 -07 projects • Collection System Program • Treatment Plant Program • Recycled Water Program • General Improvements Program / IT Plan • Summary and Conclusions 1 Review of Historical Capital Program Activity 'FY 2005 -06 Budget Needed projects have been expedited to take advantage of Dougherty Revenues CCCSD Projected Capacity Fee Revenue $16,000,000 $14,000,000 -- — $12,000,000 — $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Fiscal Year ■ Base Capacity Fee Revenue 0 DV Capacity F----Re---n--e--] G Actual Actual Actual Actual Actual Actual Projected 1999 -00 2000 -01 2001 -02 2002 -03 2003 -04 2004 -05 2005 -06 Total $21.31M $28 M $20.5M $22.4 M $19.8 M $26.5 M $30.9 M Expense ($27.7W) Total $21.6 M $18.9 M $17 M $23.5 M $28.2 M $30.0 M $28.2 M Revenue ($20.8M *) Variance +$0.3 M -$9.1 M -$3.5 M +$1.1.M +$8.4 M +$3.5 M -$2.7 M (- $6.9M *) 'FY 2005 -06 Budget Needed projects have been expedited to take advantage of Dougherty Revenues CCCSD Projected Capacity Fee Revenue $16,000,000 $14,000,000 -- — $12,000,000 — $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Fiscal Year ■ Base Capacity Fee Revenue 0 DV Capacity F----Re---n--e--] G Expenditure Goal For FY 2005 -06 —$30 million For FY 2006 -07 —$35 million CCCSD Projected Capital Project Expenditures $45,000 $40,000 $35,000 - Total Expedited Capacity Expenditures -Auppro.i..tly 0 mi ion $30,000 u $25,000 � $20,000 $15,000 $10,000 $5,000 05-06 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 12 -13 13 -14 14 -15 ■ Baseline Renewal & Replacement Expenditures ■ Expedited Capacity Expenditures Escalated 2005 -06 Projects Require Additional Authorization • When construction projects are awarded, funding for the entire project must be authorized • Moving award of a number of large projects forward to late FY 2005 -06 has created need for additional authorization Projects include: — Chemical Feed Building Renovation — Service Air system Improvements — Plant Operations Division HVAC Improvements — Three Concrete Corrosion Projects (Cured -In -Place Pipe) — Walnut Creek Renovation- Phase 4 — M4A Force Main — North Orinda Renovations — Phase 2 Additional authorization needed: — Treatment Plant Program - $3,500,000 — Collection System Program - $14,000,000 FY 2006 -07 Expenditure Recommendations EXPENDITURES 2006 -07 Collection System $19,652,000 Treatment Plant $9,691,000 General Improvements $5,019,000 Recycled Water $390,000 TOTAL EXPENDITURES $34,752,000 Staffing and Equipment Resources Deliver Projects • Staff engineer program has effectively integrated 10 new entry level engineers into the District • Rotation /cross training program has prepared all technical staff to design and construct projects that meet the needs of the operations departments • In house design for routine projects has made delivery more efficient • Effective utilization of technology has also improved project delivery • Board support of staffing and equipment needs is key 4 FY 2006 -07 Capital Cash Flow Estimate Capital Program Cash Flow 2006 -07 Total Projected Revenue $38,788,000 Total Projected Expenditures $34,752,000 Positive Variance +$4,036,000 SCF Balance June 30, 2007 $60 M FY 2006 -07 Revenue Projections Revenues 2006 -07 Facility Capacity Fees $9,369,000 Pumped Zone Fees $2,417,000 Interest $2,499,000 Ad Valorem Taxes $7,243,000 City of Concord $3,491,000 Sewer Service Charges $46 /RUE* $7,479,000 Sewer Service Charges $30 /RUE ** $4,877,000 Other Fees & Charges $1,413,000 Total Revenue $38,788,000 zoos -oti capital component 2006 -07 Added Capital Component 5 FY 2006 -07 O &M Cash Flow Estimate O&M Program Cash Flow 2006 -07 Total Projected Revenue $47,200,000 Total Projected Expenditures $54,200,000 Negative Variance - $7,000,000 O&M Reserves Balance June 30, 2007 $5.8 M Capital Revenue /Expenditure Projections Revenue 06 -07 07 -08 08 -09 09 -10 10 -11 11 -12 Facility Capacity / Pumped Zone Fees $11.8M $9.3M $9.5M $6.9M $6.4M $5.2M Ad Valorem Tax $7.2M $7.6M $7.9M $8.3M $8.7M $9.1 M Sewer Service Charge $12.4M $6.9M $6.7M $7.1M $7.5M $8.2M City of Concord $3.5M $5.4M $3.4M $3.3M $3.5M $2.8M Other $3.9M $3.8M $3.OM $3.1 M $2.8M $2.8M Total Revenue $38.8M $32.OM $30.5M $28.7M $28.9M $28.1M Total Expenditures $34.8M $39.3M $37.7M $34.7M $33.8M $32.1M Variance $ +4M $ -7M $ -7M $-6M $ -5M $-4M Sewer Construction Funds $61M $53M $46M $40M $35M $31M 2006 -07 Capital Improvements Program Workshop Agenda • Financial /Human Resources Deliver Projects — Review historical program activity and accomplishments — Discuss need for additional authorization for 2005 -06 program — Revisit revenue projections and ability to fund needed projects • Strategic Goals Drive Projects — Review progress on strategic technical issues — Review programs and selected 2006 -07 projects • Collection System Program • Treatment Plant Program • Recycled Water Program • General Improvements Program / IT Plan • Summary and Conclusions Strategic Goals Drive Projects "No violations due to inadequate infrastructure" • Provide continued WWTP reliability = plant control system upgrades (April 2004) • Prevent SSO's = collection system renovation program (Nov 2004) • Limit un- permitted discharges = wet weather capacity improvements (Nov 2004) • Avoid furnace capacity issues = emergency backup /furnace upgrades (Nov 2005) • Meet more stringent mercury requirements = develop mercury control strategy (Jan 2006) W Plant Control System Upgrade • Rigorous RFP process — 2004 -2005 • Transdyn, Inc. selected — NTP October 2005 • Hardware purchase authorized — March 16, 2006 • Factory testing — March — November 2006 • Installation — December 2006 • Commissioning — December 2006 — July 2007 SSO Prevention Strategy Investment in Renovation Reduces SSO's 8 FY 90/91 — 99/00 4 Miles/Year = 40 Miles 10 Yr Cost = $40 M Renovation FY 00/01 — 05/06 5 Miles/Year = 30 Miles Program 6 Yr Cost = $30 M FY 06/07 — 15/16 10 Miles/Year = 100 Miles 10 Yr Cost = $100 M TV Program 550 Miles of 1500 Miles of District Sewers Inspected to Date 8 Wet Weather Capacity Improvements • UV capacity improvements on -line Winter 2006 • Flow through outfall increased from 110 mgd to 135 mgd • Wet weather bypass project to design in May 2006 • Discharge directly to Walnut Creek, if needed, with adequate capacity by Winter 2007 01 FY 2006 -07 Expenditure Recommendations EXPENDITURES 2006 -07 Collection System $19,652,000 Treatment Plant $9,691,000 General Improvements $5,019,000 Recycled Water $390,000 TOTAL EXPENDITURES $34,752,000 2006 -07 Expenditures Collection System Program PROJECT 2006 -07 Expenditures Total Project Cost Concrete Corrosion M3 $2,650,000* $2,985,000 North Orinda Renovation — Phase 2 $2,300,000* $2,490,000 Alhambra Valley Trunk Sewer $1,510,000 $2,275,000 M4 -A Force Main Replacement $1,415,000* $2,347,000 Walnut Creek Renovations — Phase 4 $1,379,000* $1,529,000 Danville Sewer Renovations — Phase 1 $1,200,000 $1,365,000 Concrete Corrosion Minert/Arkell $1,186,000* $1,186,000 Concrete Corrosion Saint Mary's $1,070,000* $1,070,000 Total Collection System Projects <$1,000,000 $6,942,000 NA Total Collection System Program * Awarded in late FY 2005 -06 $19,652,000 NA 10 North Orinda Renovations — Phase 1 Customer feedback survey FY 05 -06 • 136 out of 484 surveys returned (28 %) • 46 out of 89 "Outstanding Service" (52 %) • 38 out of 89 "Satisfactory Service" (42 %) • 5 out of 89 "Unsatisfactory Service" (6 %) • Positive — Crews very polite and accommodating, work well planned and executed • Negative — Traffic delays, litter, patched paving North Orinda Renovations - Phase 2 Issues at 9 Crane Court, Orinda • Illegal Easement Encroachments: — House Addition — Pool — Retaining Wall • Three connections that were not approved or permitted. 11 North Orinda Renovations — Phase 2 9 Crane Court Encroachments Building permits do not exist for either the pool or the house addition. • Sanitary sewer was relocated outside of easement for construction of the pool. Relocation was not approved by the District. 9 Crane Court - Existing Situation 12 9 Crane Court — Renovation Options • Remove encroachments and reconstruct within existing easement. • Pipeburst and obtain a new easement for actual pipe location. • Construct sewer in new alignment around encroachments and obtain new easement. 9 Crane Court - Proposed Reconstruction WCT M4 R. 1 50' U ' 14.10 D. 0 °40'35' B WAS BC 13.40.05 'Al N 2158356.]5 E 99yO�FFh" 8074072.38 S8� REMOVE 2 KS 485. :ek "`.v CONSTRUCT M5 - EC 1M30.68'Al 14 51. 5 1' 2159445.00 E 112.E O A E 80]4091.78 5 $ BC 1-W.64 Al -- - 80]41 .9 R -100' U]t' 36' OAK D.40 °39'374 EX 8' SD /c�9U '-�_- �- '� K EX ND 15LF SEE NOTE 1 )36' OAKS K s' q c wE �EMEN1 EX STRUCTURE RET.WAL REMOVE X PB fi LAWN DO NOT RECON CT POOL LATERA \ '�\ �BRICKA ON EC 15,34.80 'Al ' \ 1 159517.46 E 4154. 83 6' WOOD FENCE Be 1 - ROOF LINE 9 159fi 4 4165.59 RET.WALU - -� 24' REI PS CRANE CT CLEAN OUT/ 4 (UNDER STEPS) R.150 EC 16,12.37'A1' \ L.54' 21 90.19 13.20°33'33' E 6074180.74 13 A- Line /Concord Joint Project Overview Y p COUNTY r x _ -Y _ Ul9lfido� .MM w — uW Rmff wTmm"Ca s 14 A- Line /Concord Joint Project JPA Contributions • Recycled Water Line —30% of cost Based on Concords average annual % of plant influent flow • A -Line 20 -25% of cost Based on Concords % of peak wet weather flow in this line • Concord Intertie 100 % of cost Replaces Concord Pumping Station and is 100% Concord flow 15 2006 -07 Expenditures Treatment Plant Program PROJECT 2006 -07 Expenditures Total Project Cost Ultraviolet Disinfection Expansion $1,700,000* $4,584,000 Plant Control System Improvements $1,000,000 $2,641,000 Standby Power Facility Improvements $1,000,000 $1,500,000 POD HVAC and Roof Improvements $900,000* $1,000,000 Chemical Feed Building Renovation $900,000* $1,025,000 Service Air Improvements $800,000* $1,055,000 Total Treatment Plant Projects < $800,000 $3,391,000 NA Total Treatment Plant Program * Awarded in We FY 2005.06 $9,691,000 NA 2006 -07 Expenditures Recycled Water Program PROJECT 2006 -07 Expenditures Total Project Cost Recycled Water— Pleasant Hill Phase 1B $316,000 $4,151,000 Total Remaining Recycled Water Projects $74,000 NA Total Recycled Water Program $390,000 NA 16 2006 -07 Expenditures General Improvements Program PROJECT 2006 -07 Expenditures Total Project Cost HOB HVAC and Roof Improvements $1,003,000 $1,636,000 Equipment Budget $1,000,000 NA CSOD Cal Trans Site Improvements $800,000 1,000,000 CSOD Facility Improvements $800,000 $10,608,000 Information Technology Development * $450,000 NA Total General Improvements Projects < $250,000 $966,000 NA Total General Improvements Program $5,019,000 NA * Discussion to follow Information Technology Plan 17 2006 -07 Capital Improvements Program Workshop Agenda Financial /Human Resources Deliver Projects — Review historical program activity and accomplishments — Discuss need for additional authorization for 2005 -06 program — Revisit revenue projections and ability to fund needed projects Strategic Goals Drive Projects — Review progress on strategic technical issues — Review programs and selected 2006 -07 projects • Collection System Program • Treatment Plant Program • Recycled Water Program • General Improvements Program / IT Plan Summary and Conclusions Capital Improvement Budget Summary for FY 2006 -07 18 Estimated Total Program FY 2006 -07 Estimated Carry-over from Estimated Allocation FY 2006.07 Program Prior Fiscal Year FY 2006 -07 Proposed Expenditures Authorization Treatment Plant $9,691,000 $9,410,000 $6,685,000 $16,095,000 Collection System $19,652,000 $17,314,000 $22,654,000 $39,968,000 General Improvements $5,019,000 $1,856,000 $13,059,000 $14,915,000 Recycled Water $390,000 $31,000 $366,000 $397,000 Total this Fiscal Year $34,752,000 $28,611,000 $42,764,000 1 $71,375,000 18 Board Role in Capital Program is Ongoing • Authorize Program Budgets each fiscal year • Authorize Supplemental Program Funds if needed • Award Construction Projects > $15,000 • Authorize Construction Change Orders >$50,000 • Authorize Consultant Contracts > $50,000 • Authorize Revisions to Consultant Contracts > 15% Questions? Staff is available to stay after meeting for any detailed technical question. 19 4.b. Information Technology Development Capital Improvement Budget 2006 -2007 Overview Section I: Current 2005 -06 Budget Section II: Proposed 2006 -07 Budget Section III: Future Projects Section IV: Accomplishments 1 Current 2005 -06 Budget Budget: $490k Projected: $416k • GroupWise Email Upgrade • Multi Purpose Room Presentation System • Primary Network Server Replacement • PC Replacement Program • Network Center Upgrade • Eng Support Fiber Switch Current 2005 -06 Budget - cont'd. • Central Network Storage • Laser Check Forms • Mainsaver Upgrade • Project Management Services • Intranet Development • Miscellaneous Hardware & Software • Sungard HTE Sewer Billing Upgrade 2 Proposed 2006 -07 Budget $415k HHHWF Visitor 15 Management System PC Replacement 110 Program Eng Support Upgrades 30 Pumping Station 15 SCADA Laptops 35 Plan Review Upgrades 5 Training Laptop 10 Replacements 40 Proposed 2006 -07 Budget - cont'd. Accela Software 20 Upgrade Procurement Card 20 Application Microsoft Office 45 Software Upgrade Telephone 35 Management System Upgrade Internet & Intranet 40 Development Project Management 20 Services Contingency / Misc. 50 Hardware & Software Questions ? Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 13, 2006 No -: 5.a. ENGINEERING Type of Action: AUTHORIZE FUNDS subject: APPROVE SUPPLEMENTAL AUTHORIZATIONS FROM THE SEWER CONSTRUCTION FUND OF $14,000,000 FOR THE COLLECTION SYSTEM PROGRAM AND $3,500,000 FOR THE TREATMENT PLANT PROGRAM OF THE 2005 -06 CAPITAL IMPROVEMENT BUDGET (CIB) Submitted By. Initiating Dept. /Div.: P. Gail Chesler, PhD, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: JA CI�I� (\' lwffarI4 G. Chesler R. Schmidt C. Swanson A.Pdrrell arles W. Batts General Manager ISSUE: Authorization by the Board of Directors is required for the addition of funds to Program Budgets from the Sewer Construction Fund. RECOMMENDATION: Authorize an additional $14,000,000 from the Sewer Construction Fund for the Collection System Program, and an additional $3,500,000 for the Treatment Plant Program of the 2005 -06 Capital Improvement Budget (CIB). FINANCIAL IMPACTS: The authorization of additional funds will allow projects scheduled for bidding this spring to continue. ALTERNATIVES /CONSIDERATIONS: If this supplemental authorization is not approved, the award of construction contracts for several planned projects will be delayed. BACKGROUND: Each year as part of the CIB adoption process, the Board of Directors authorizes funds for each of the four capital programs: Treatment Plant, Collection System, General Improvements, and Recycled Water. When the Capital Budget is prepared, estimates are made of the amount of authorizations that will be needed in the next fiscal year. Making these estimates involves projecting how much unspent allocated money will carry over from one year to the next, and in what fiscal year construction projects will be awarded. Since design and construction may straddle two fiscal years, the assumption of which fiscal year the construction contract will be awarded for large projects has a significant impact on the size of the funding authorization that is approved by the Board as part of the CIB. There are six large Collection System projects that will be awarded in May or June of 2006, and, as a result, funding of the construction contract will occur in fiscal year 2005- 06 rather than 2006 -07. These projects and the estimated required authorization to N: \ENVRSEc \Position Papers \Chesler\2006Wpprove CSO & TP Supplemental Authorizations CIB 3- 06.doc Page 1 of 2 POSITION PAPER Board Meeting Date: April 6, 2006 subject: APPROVE SUPPLEMENTAL AUTHORIZATIONS FROM THE SEWER CONSTRUCTION FUND OF $14,000,000 FOR THE COLLECTION SYSTEM PROGRAM AND $3,500,000 FOR THE TREATMENT PLANT PROGRAM OF THE 2005 -06 CAPITAL IMPROVEMENT BUDGET (CIB) fund construction include: Walnut Creek Renovation — Phase 4 ($1.6M); M4A Force Main ($2.4M); North Orinda Renovation — Phase 3 ($2.6M); and three cured -in place (CIPP) pipe projects ($5.6M). In addition to the Ultraviolet Disinfection Expansion Project, where an additional authorization was included in the position paper to award the construction contract on April 6, 2006, there are three significant treatment plant projects that are scheduled to award during the last three months of FY 2005 -06. These were previously thought to be awarded in early FY 2006 -07. The projects and estimated construction allocations include the Chemical Feed Building Renovation ($1 M); Service Air System Improvements ($1.5M); and Plant Operations Division Building HVAC Improvements ($1 M). All of the above projects appear in the FY 2005 -06 CIB but were not planned for construction award until FY 2006 -07. In order to award the construction contracts for these projects in FY 2005 -06, an additional authorization is needed. Staff requests that the Board of Directors approve supplemental authorizations of $14M for the Collection System program and $3.5M for the Treatment Plant program. The majority of the construction related expenditures on the above projects will occur in FY 2006 -07. RECOMMENDED BOARD ACTION: Authorize an additional $14,000,000 from the Sewer Construction Fund for the Collection System Program, and an additional $3,500,000 for the Treatment Plant Program of the 2005 -06 Capital Improvement Budget (CIB). N: \ENVRSEC \Position Papers \Chesler\2006\Approve CSO & TP Supplemental Authorizations CIB 3- 06.doc Page 2 of 2