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HomeMy WebLinkAbout04/12/2007 AGENDA BACKUP2007/08 Capital Improvements Program Board Workshop April 12, 2007 2007/08 Capital Improvements Program Workshop Agenda • CIB /CIP Must Respond to Regulatory and Revenue Changes — Review historical program activity and accomplishments — Revisit revenue projections and ability to fund heeded projects • Strategic Goals Drive Projects — Review progress on strategic technical issues — Review programs and selected 2007/08 projects • Collection System Program • Treatment Plant Program • Recycled Water Program • General Improvements Program / IT Plan • Summary and Conclusions 1 Regulatory Drivers and Accomplishments • SSO's - Implementation of sewer renovation program (Orinda/Walnut Creek) • SSO's - Major pumping stations renovated /focus on smaller pumping stations (Acacia/Concord /Industrial /Clyde /Martinez) • Wet weather collection system capacity - Continue to address (A -line Phase 2A) • Wet weather treatment capacity - Increased to nominal 135 mgd from 90 mgd to reduce storage and untreated overflows (UV Disinfection Capacity) • Treatment reliability - Renewal and replacement of critical infrastructure ( Solids Handling /Standby Power /Service Air) • Effluent Requirements - Proactively addressing mercury limits Review of Recent Capital Program Activity 2 1999/00 2000101 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 Projected Total 26.7 M $24.4 M $25.1 M $28.2 M $25.9 M $26.6 M $27.7 M $34.7 M budgeted expenditures Total actual $21.3 M $28 M $20.5 M $22.4 M $19.8 M $26.5 M $27.7 M $39.1 M expenditures Total actual $21.6 M $18.9 M $17 M $23.5 M $28.2 M $30.0 M $24.8 M $34.1 M revenue Variance + $.3 M $9.1 M $3.5 M + $1.1 M + $8.4 M + $3.5 M - $2.9 M - $5.0 M SCF Balance $55.9 M $50.9 M - June 30 2 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 CCCSD Actual Capital Revenue vs. Budgeted Capital Revenue $15,000,000 -- Average Actual Revenue $24.8 million $10,000,000 - -- - - - -- -- Average Budgeted Revenue $23.7 million $5,000,000 - - - Difference: $9 million more revenue than budgeted over 8 year period. $0 1999/00 2000/01 2001/02 2002/03 2003/04 2004105 2005/06 2006/07 Projected f Total Actual Capital Revenue —Total Budgeted Capital Revenue i 3 Capital Revenue Discussion ■Capital Revenue from a number of sources -Recently sources are highly variable ■Only discretionary source: Sewer service charge CATEGORY 2001/02 2002!03 2003104 2004/05 2005106 BUDGET PROJECTED 2006/07 2008/07 SSC CAPITAL COMPONENT $20 $41 $54 $76 $46 $76 $76 SEWER SERVICE CHARGE $3,100.000 $6,300,000 $8.400.000 ,. $12,100,000 $7.400,000 $12.400,00 $12,500.000 AD VALOREM TAX $6,400,000 $7,700,000 $7,900,000 $200,000. $1.100,000 $7,200,000 $7,500.000 CAPACITY FEES $4,400,000 $6,100,000 $7,600,000, $12,700,000 $10,400,000 $11,800,000 $6,800,000 ALL OTHER $3,100,000 $3,400,000 $4,300,000 $5,000,000 $5,900,000 $7,400,000 $7,300,000 TOTAL ACTUAL CAPITAL $17 ,000,000 $23,500,000 $28,200,000 .. $30, 000, 000 $24 ,800,000 $38,800.000 $34,100,000 REVENUE $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 CCCSD Actual Capital Revenue vs. Budgeted Capital Revenue $15,000,000 -- Average Actual Revenue $24.8 million $10,000,000 - -- - - - -- -- Average Budgeted Revenue $23.7 million $5,000,000 - - - Difference: $9 million more revenue than budgeted over 8 year period. $0 1999/00 2000/01 2001/02 2002/03 2003/04 2004105 2005/06 2006/07 Projected f Total Actual Capital Revenue —Total Budgeted Capital Revenue i 3 sdn nnn nnn , $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 CCCSD Actual Capital Revenue vs. Actual Capital Expenditures Average Actual Revenue $24.8 million $10,000,000 - - - Average Actual Expenditures $25.7 million $5,000,000 Difference = $7 million more expended than revenue over a year Period. Sewer Construction Fund Balance drawn down $7 million. $0 19ewoo 2000101 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 Projected -s -Total Actual Capital Revenue Total Actual Capital Expenditures FY 2007/08 Expenditure Recommendations EXPENDITURES 2007/08 Collection System $26,540,000 Treatment Plant $12,292,000 General Improvements $3,155,000 Recycled Water $1,074,000 TOTAL EXPENDITURES $43,061,000 FY 2007/08 Budgeted Revenue Revenues 2007/08 Facility Capacity Fees $6,334,000 Pumped Zone Fees $1,100,000 Interest $2,503,000 Ad Valorem Taxes $7,930,000 City of Concord $11,123,000 Sewer Service Charges $58 /RUE $9,462,000 Other Fees & Charges $1,996,000 Total Revenue $40,448,000 FY 2007/08 Capital Cash Flow Estimate Capital Program Cash Flow 2007/08 Total Budgeted Revenue $40,448,000 Total Budgeted Expenditures $43,061,000 Negative Variance - $2,613,000 Projected SCF Balance June 30, 2008 $48.2 M Capital Revenue /Expenditure Projections Revenue 2007/08 2008/09 2009/10 2010111 2011112 2012/13 2013114 Facility Capacity / Pumped Zone Fees $7.4M $7.6M $9.OM $9.2M $8.6M $8.4M $7.3M Ad Valorem Tax $7.9M $8.4M $8.OM $7.8M $8.4M $8.9M $8.7M Sewer Service Charge $9.4M $6.2M $6.5M $6.2M $7.1 M $6.8M $6.8M City of Concord $11.1 M $3.3M $3.5M $3.1 M $3.2M $3.4M $3.6M Other $4.6M $4.2M $4.OM $3.5M $3.5M $3.6M $4.2M Bond Proceeds $20.6M $23.2M Total Revenue $40.4M $50.3M $31.OM $29.8M $30.8M $54.3M $30.6M Total Expenditures $43.1 M $53.2M $42.6M $30.1 M $31.1 M $41.6M $42.3M Variance $ -2.6M $ -3M $ -11.6M $12.7M $ -11.7M Sewer Construction Funds Balance $48.2M $45.2M $33.6M $33.3M $33M $45.7M $34M Facility Capacity Fees vs # of RUEs $12,000,000 3000 MOD0,000 - - - -. - - -- -_.- _ -_ -. 2500 $6,000,000 _... - -- - -_.- - -- - - -- -... _ 2000 $6,000,000 - -- - - - -- - - -. - - 1500 s $4,000,000 - - -._- -._ _.. - - -- - -- -- - -- 1000 $2,000,000 -_ -.. - -. - -___ -. - - -- - - - -.- 500 $0 0 Fiscal Year -Total Facility y Capacity Fees --*--Number of RUEs Connected J u Projected Number of RUEs 2500 Ilk 2000 a ,500 ,000 Soo 0 rsd veer �a ai r - ees, case —�•a w.� - wor :, case —a a-s - C13 1 2007/08 Capital Improvements Program Workshop Agenda • CIB /CIP Must Respond to Regulatory and Revenue Changes — Review historical program activity and accomplishments — Revisit revenue projections and ability to fund needed projects • Strategic Goals Drive Projects — Review progress on strategic technical issues — Review programs and selected 2007/08 projects • Collection System Program • Treatment Plant Program • Recycled Water Program • General Improvements Program / IT Plan • Summary and Conclusions 7 FY 2007/08 Expenditure Recommendations EXPENDITURES 2007/08 Collection System $26,540,000 Treatment Plant $12,292,000 General Improvements $3,155,000 Recycled Water $1,074,000 TOTAL EXPENDITURES $43,061,000 2007/08 Expenditures Collection System Program PROJECT 2007/08 Expenditures Total Project Cost A -Line Phase 2 -A $12,431,000 $17,751,000 Alhambra Valley Trunk Sewer $2,200,000 $5,954,000 North Orinda Renovation — Phase 3 $1,800,000 $1,960,000 North Orinda Renovation — Phase 2.1 $1,620,000 $1,900,000 Walnut Creek Renovations — Phase 5 $1,540,000 $1,760,000 2007/08 Development Sewerage $1,180,000 NA TV Inspection Program $700,000 NA Martinez Sewer Renovations — Phase 1 $587,000 $800,000 Total Collection System Projects <$587,000 $4,282,000 NA Total Collection System Program $26,540,000 NA A- Line /Concord Joint Project Overview c �l M A —L= Concord Segment A — Line Relief Interceptor Inv-8.8 SUCK# AM SOYTM Inv =12.0 � Inv =12.4 i / � SUCII�NAN WOIITM 5 =0.0006 �� ' Inv-6.3 Inv -3.6 0: 9 Inv =0.0 A- Line /Concord Joint Project Cost Update Facility Total Cost Concord Portion A -line Phase 2A $12 million $3.0 million Concord Intertie $6 million $6 million Recycled Water Line $2 million $.6 million Total Cost $20 million $9.6 million 10 A- Line /Concord Joint Project Tentative Schedule • Draft CEQA • Public Hearing • Advertise to Bid • Award Construction • Complete Construction April 2, 2007 May 24, 2007 July 2007 Sept 2007 Sept 2008 Remaining Item — Buchanan Golf Course ROW SSO Prevention Strategy Investment in Renovation Reduces SSO's "Total Project Cost in 2006 -07 was approximately $1.5 million per mile renovated /replaced. 11 FY 90/91 — 99/00 4 Miles/Year = 40 Miles 10 Yr Cost = $40 M Renovation FY 00/01 — 06/07 5.4 Miles/Year = 38 Miles Program 7 Yr Cost = $43 M FY 06/07 —15/16 5.4 Miles/Year = 54 Miles* 10 Yr Cost = $81 M" TV Program 680 Miles of 1500 Miles of District Sewers Inspected to Date "Total Project Cost in 2006 -07 was approximately $1.5 million per mile renovated /replaced. 11 Construction Cost Increase Extends Schedule for Renovation • Of 1500 miles, estimate 200 -300 miles will require renovation based on current TV results • Completed 78 miles - 30% of total • Plan next 10 years 54 miles - 20% of total • 50% will remain after next ten years unless rate of renovation expenditures are increased or cost per mile decreases 2007 -08 Expenditures Treatment Plant Program PROJECT 2007/08 Expenditures Total Project Cost Standby Power Facility Improvements $1,725,000 $2,741,000 Solids Handling Improvements $1,500,000 $6,624,000 Ultraviolet Disinfection Expansion $1,500,000 $4,193,000 Service Air Improvements $1,225,000 $1,921,000 Plant Control System Improvements $800,000 $3,091,000 Piping Renovations & Replacement- Phase 3 $800,000 $826,000 Plant Wet Weather Protection $700,000 $1,450,000 Scrubber Water Mercury/Metals Removal $695,000 $20,100,000 Total Treatment Plant Projects < $695,000 $3,347,000 NA Total Treatment Plant Program $12,292,000 NA 12 Mercury is Greatest Regulatory Challenge Effluent Limits in Flux • Interim Limit* 87 ppt Remand? • TMDL Limit* 41 ppt Fall 2008? • Final Limit* 18 ppt April 2010 • CCCSD Annual Ave 35 ppt Current *monthly average effluent limit CCCSD cannot meet final limit under current operation. Where does Hg come from and where does it go? INTO PLANT • 34.7 Ib /yr plant influent RECYLE WIN PLANT • 19.3 Ib /yr recycled scrubber water • 33.2 Ib /yr to aeration basins OUT OF PLANT • 29.1 Ib /yr air emissions • 4.8 Ib /yr plant effluent • 0.8 Ib /yr grit/ash Total 34.7 Ib /yr Must attack influent AND recycle stream to meet Final Limits. 13 Mercury Control Options • Shut down Incinerator and Haul Sludge • Remove Mercury from Scrubber Water • Change Air Emissions Control to capture Mercury in solid adsorbent Secondary Clarifiers Primary Aeration Outran Clarifiers Basins _ Secondary Clarifiers Dissolved Air Flotation I L Thickener Male up Water Multiple Multi- Waste Heal ID Fan Dewatering Hearth Cycbne Dry Recovery Wet To Furnace Scrubber Boiler ��� A[mosphere Wet Ash Dry Ash Lspsnd Disposal a Reuse Wastewater Flow Solids Flow Incinerator Exhaust Scrubber Water Figure 1: CURRENT CCCSD Incineration Process Schematic 14 Primary Aeration Clarifiers Brine Secondary Clarifiers QMall Secondary Clarifiers Dissolved Ai FldeOion TNckener Multiple Multi- Waste Heat Dewatering Hearth Cyclone Dry Recovery Furnace Scrubber Boiler Wet Ash Dry Ash DiQ or Reuse u. Granular Duel Media Activated Carbon Sand Filter sails Backwash Disposal Thickening D Fen Wet To Scrubber Atnosl'hThere Legend Waske star Flow Solids Flow nanerator Exhaust Snubber Water Figure 2: Alternative 1 A Schematic Diagram Secondary Clarifiers Primary I T I Aeration �� otrtmn Clarifiers Basins Secondary Clarifiers J Makeup Water Dissolved Air Fbtetlon TMCkener carbon Mu10- Muttiple Waste Heet Fwetering Hearth Cycone Reoovery Exchanger Baghouse Furnace Scrubber ear �r Ash Wet Ash Dry Ash Disposal or Bypass ID Fen Legend Reuse Wet To Wastewater Flow Scrubber Atmosphere Solids Flow Incinerator Exhaust Scrubber Water Figure 5 Alternative 3 Schematic Diagram Gas -Phase Incinerator Exhaust Treatment: Powdered Carbon Injection with Baghouse 15 Long Term Mercury Removal Solutions Cost Comparison Approach Capital Cost PW Annual Total PW Cost Term O &M Cost (20 yrs) Yes No (20 yrs) Late 2008 Haul Dewatered $3 million $133 million $136 million Sludge No Scrubber Water Summer Scrubber Water $40 million $90 million $130 million Treatment Yes Dry Scrubber Early Dry Scrubber Air $21 million $87 million $108 million Treatment Adsorption Potential Interim Mercury Removal Solutions Interim Long Technology Best Term Schedule Yes No Haul Dewatered Late 2008 Sludge Maybe No Scrubber Water Summer Treatment Pilot 2007 No Yes Dry Scrubber Early Mercury 2010111 Adsorption 16 Mercury Removal Decision Tree — "When" not "If" YES - N Ultimately, mercury removal from incinerator emissions will be required. Current Mercury Control Plan • Mandatory Amalgam Separator Program fully implemented by December 2007. • Design of Sludge Hauling Facility underway/ Construction 2007/08. • Pilot plant for Scrubber Water Treatment to Board May 2007 /Operational Summer 2007. • Dry Scrubber pilot plant operational Summer 2007 • Dry Scrubber Mercury Removal design consultant selection underway /Construction 2008/09. 17 Wet Weather Capacity Improvements • UV capacity improvements to -135 mgd Winter 2007 • Flow through outfall previously increased to 135 mgd • Wet weather bypass project design begun in 2006 • Discharge directly to Walnut Creek with adequate capacity by Winter 2007 delayed by levee issues 90W..., cw+da aro• IV UV Capacity Increase Project on Schedule for Wet Weather 2007 • Patent/Procurement Issues Resolved • Equipment Factory Tested in Canada -Feb07 • Equipment Delivered to Site - Mar /Apr 2007 • Equipment Installation -Starts May 2007 • Startup and Testing - Aug /Oct 2007 • Operational November 2007 - Able to treat -135 mgd /Usage of storage ponds and likelihood of need to overflow to Walnut Creek significantly reduced. 2007/08 Expenditures Recycled Water Program PROJECT 2007/08 Total Expenditures Project Cost Recycled Water — Pleasant Hill Phase $1,000,000 $2,920,000 1B Total Remaining Recycled Water $74,000 NA Projects Total Recycled Water Program $1,074,000 NA U A • • • • • r- :. 2006 -07 Expenditures General Improvements Program PROJECT 2006 -07 Expenditures Total Project Cost Equipment & Vehicle Budget $1,177,000 NA Information Technology Development $668,000 NA CSOD Facility Improvements $472,000 $13,782,000 HOB Improvements $245,000 $1,025,000 Total General Improvements Projects < $245,000 $593,000 NA Total General Improvements Program $3,155,000 NA " Discussion to follow 20 Becoming Green ........ • Recycled Materials in HOB Lobby Upgrade • Recycling of used Carpet • Solar Panels on HHW Roof • Biodiesel Investigation • CSO Building LEED Certified Information Technology Plan 21 2007/08 Capital Improvements Program Workshop Agenda • CIB /CIP Must Respond to Regulatory and Revenue Changes — Review historical program activity and accomplishments — Revisit revenue projections and ability to fund needed projects • Strategic Goals Drive Projects — Review progress on strategic technical issues — Review programs and selected 2007/08 projects • Collection System Program • Treatment Plant Program • Recycled Water Program • General Improvements Program / IT Plan • Summary and Conclusions Capital Improvement Budget Summary for FY 2007/08 22 Estimated Total Program FY 2007/08 Estimated Carry-over from Estimated Allocation FY 2007/08 Program Prior Fiscal Year FY 2007/08 Proposed Expenditures Authorization Treatment Plant $12,292,000 $8,230,000 $17,763,000 $25,993,000 Collection System $26,540,000 $4,474,000 $39,633,000 $44,107,000 General Improvements $3,155,000 $699,000 $3,249,000 $3,948,000 Recycled Water $1,074,000 $24,000 $1,951,000 $1,975,000 Total this Fiscal Year 1 $43,061,000 1 $13,427,000 1 $62,596,000 $76,023,000 22 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. 041 Table A -5: Cash Flow Assumptions 2007 Capital Improvement Plan Fiscal Year 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016117 Interest% 5.25% 5.50% 5.75% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Inflation% 3.0% 3.0% 3.09/ 3.0% 3.0% 3.09/< 3.0% 3.0% 3.0% 3.0% S of New Connections 1,400 1,400 1,600 1,600 1,500 1,450 1,300 1,300 1,300 1,300 Ad Valorem Tax Escalation 4.0% 4.09/ 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.09/ Total Sewer Charge (SSC) $300 $311 $327 $343 $358 $373 $388 $403 $427 $433 SSC Capital Component $58 $38 $39 $37 $41 $39 $39 $36 $37 $39 SSC Increase $11 $11 $12 $12 $12 $13 $13 $13 $13 $13 Sewer Service Charge is set as needed to generate adequate revenue, O&M and Debt are funded first, than Capital. ' The housing market Is very cyclical and dielouit to predict Since Me protection of new connections developed In November 2008 and used in Me January 2007 Financial Planning Workshop, the horsing market has continued its downward band. Staff has further adjusted Me number of connections downward for 2007-08 and 2008-09. The connections for Me eining years in Me ten year plan have not been adjusted. If Me housing market tumdown tontines into 2009 -10 and beyond and Me planned expenditures are maintained, Me SSC capita component will need to W raised to offset Me lost ravane. This will result in a graver Man planned increase in Me overall Sewer Service Charge in Me outlying year. These projections Will be revisited in the fall of 2007 in preparation for the January 2008 Financial Planning Workshop. Sewer Construction Fund Cash Flow Projection Ten -Year Capital Improvement Plan 'all numbers in thousands of dollars Sower Construction Fund 2007/08 2008/09 2009'10 201411 2011/12 2012/13 2013114 2014/15 2015116 2016117 Treatment Rant Program 12,292 19,172 18,105 7,794 8,070 19,731 20.225 8.607 8,876 Inlxama Maraet on iweatnarms 2,503 2,383 2234 1,935 1,941 1,935 2,382 2,017 2,072 2,084 Facilities Capacly Fee 6,334 6,472 7,554 7,717 17,386 7,280 6'ew 6,7415 6,880 6,893 RmW Zone Fee 1,100 1,124 1,484 1,446 1,232 1,097 618 545 468 476 Ad valorem tease 7,930 8,408 8,069 7,826 8,355 8,903 8,716 10,756 11,284 11,924 Sew er Service Charges 9,462 6253 6,480 6,207 7,108 6,828 6,880 6,412 6,635 4,749 Reintruraenern lromothers: . Dsvebper tees -San P.- 247 City of C ord 10,876 3,334 3,478 3,143 3,235 3,378 3,571 3,976 4,088 4,139 oly cl Concord - Ankral Cor trol 247 Alhanbra Valley 750 880 667 459 459 551 551 551 551 551 Bonds proceeds 20,600 23,185 Cwebper fares &charges, rrwc 999 1,029 1,080 1,092 1,124 1,158 1,193 1,229 1,268 1,304 Subtotal 40,448 50,283 31,026 29,825 30840 54,315 30,567 32251 33224 32.220 Btt»n0kures 1,000 1,030 0 0 0 0 0 0 0 0 Subtotal Treatment Rant Program 12,292 19,172 18,105 7,794 8,070 19,731 20.225 8.607 8,876 9173 Collection System Program 25,540 21,691 17,293 19,964 20,597 19,128 19,699 20293 21,536 22,442 General nprwwwres Program 3,1% 10,447 6,853 2,008 2,114 2,357 1,980 2,180 2,350 1,644 Recycled Water Program 1,074 928 361 372 383 383 394 406 471 485 Subtotal 42,061 52,239 42,812 30,139 31,163 41,598 42,296 31,465 33234 33,744 Alhambra Valley 1,000 1,030 0 0 0 0 0 0 0 0 Subtotal 43 ,061 53,269 42,612 30,139 31,163 41,598 42,298 31,465 33234 33,7" Net lnarisses. -2,613 -2,988 - 11,586 -314 -323 12,717 - 11,731 786 10 -1,524 Project ed Sewer Construction Funds Available 48, 213 45,227 33,641 33,328 W', 45,722 33,990 34,776 34787 33263 M, Information Technology Development Capital Improvement Budget 2007 -2008 Overview Section I: Current 2006 -07 Budget Section II: Proposed 2007 -08 Budget Section III: Future Projects Section IV: Accomplishments Current 2006 -07 Budget Budget: $415k • PC, iMac & Server Replacement • Eng Support H/S Upgrades • SCADA & GDI Laptops • Accela Software Upgrade • Sewer Billing • Annex Building Wireless Network • MainSaver Software Upgrade Remaining 2006 -07 Budget Projected: $546k • HHWF Visitor Management System • Network Center UPS • Storage Area Network • MainSaver Upgrade — Phase 2 • Internet Web Site Development 2 Proposed 2007 -08 BudcLet Projected: $668k • PC, Laptop & Server Replacement • Eng Support H/S Upgrades • Source Control Inspection Software • Internet Development • Network Hardware Upgrades • Board Room & MPR Upgrades • Remote Access Server • Laboratory Electronic Reporting Questions ? 3