HomeMy WebLinkAbout04/09/2009 AGENDA BACKUPF 'Central Contra Costa
Sanitary District
FY 2009 -10 • - - • -
Capital Improvement Budget
and Ten -Year Plan
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Executive Summary
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Central Contra Costa Sanitary District
FY 2009 -10 Capital Improvement Program
Executive Summary
Central Contra Costa Sanitary District funds an extensive Capital Improvement 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 FY 2009 -10 Capital Improvement Budget (CIB) details expenditures of approximately $40 million for
the planning, design and construction of capital projects. By adopting the CIB, the Board of Directors authorizes
staff to pursue this work.
In addition to the CIB for the upcoming year, the Board approves a Ten -Year Capital Improvement Plan that
forecasts needed expenditures for ten years into the future. This plan focuses on renovation, expansion and
regulatory requirements. Its estimated expenditures for the next ten years are $331 million (in 2009 dollars), an
average of $33 million per year. The CIB and Ten -Year Capital Improvement Plan also include projected revenues
and cash -flow analyses to demonstrate how planned expenditures will be funded.
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 year we are faced with some challenges and opportunities. Our revenue stream for the next several years is
projected to be significantly reduced due to the downturn in the U.S. economy. This downturn has also created an
opportunity by substantially reducing the number of projects under construction, resulting in a very competitive
bid climate. The low bid on some recently bid District projects has been as much as 50% less than the engineer's
estimate, which is the estimate used to develop the planned capital expenditures.
For this reason, staff has recommended, and the Board has agreed, to proceed with an aggressive capital program
this year, even though revenues will be reduced. For planning purposes, we have assumed that the cost of projects
bid this fiscal year will be reduced by 20 %, and next year by 10 %. These reductions have allowed us to present
a budget for Board approval with expenditures that exceed revenues, but which maintains an appropriate Sewer
Construction Fund balance, assuming there are modest Sewer Service Charge increases and either short -term
borrowing or bonds sold in the next year.
This summary describes the major projects for FY 2009 -10, the major projects included in the Ten -Year Capital
Improvement Plan, and the revenue streams that will support the planned expenditures.
Large interceptor projects may
require the use of large tunneling
machines, such as this one used on
the recently completed extension of
the District's A -Line.
FY 2009 -10
Capital Improvement Budget
The FY 2009 -10 CIB budgets for expenditures of approximately $40 million ($40,117,000) for the planning,
design and construction of capital projects categorized into four programs:
• Treatment Plant
• Collection System
• General Improvements
• 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:
Capital og
Subprogram
Treatment Plant Program
•d Expenditure
I'
$13.8 million (34 %)
Regulatory Compliance /Planning
$
3.9 million
One -Time Renovation
$
6.9 million
Recurring Renovation
$
2.7 million
Expansion /Capacity Improvements
$
0.1 million
Other Miscellaneous Projects
$
0.2 million
Collection System Program
$15.2 million (38 %)
Renovation
$
9.9 million
Regulatory Compliance /Planning
$
0.3 million
Expansion /Capacity Improvements
$
3.8 million
Pumping Stations /Force Mains
$
1.1 million
General Improvements Program
$10.6 million (27 %)
Vehicles and Equipment
$
1.0 million
Management Information Systems
$
0.8 million
CSO Facility Improvements
$
7.5 million
All Other
$
1.3 million
Recycled Water Program
kWMWM=ft
$
$40
0.6 million (1 %)
million (100%)
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Major Project Emphasis
Although the CIB is made up of many individual projects, each year there are several major projects which
together account for a majority of total estimated capital expenditures. In FY 2009 -10, the emphasis will
be on the following 13 large projects, which together account for $28,067,000, or 70% of the total estimated
expenditures. Estimated FY 2009 -10 expenditures as well as total costs are noted.
TREATMENT PLANT PROGRAM
Standby Power Facility Improvements
FY 2009 -10: $3,700,000
Estimated total project cost: $5,605,000
This project will replace two diesel engine generators that do not meet the new regulations of the Bay Area Air
Quality Management District and which have reached the end of their useful lives. The facility will be modified
to accept the new generators and be brought up to current seismic standards.
Solids Handling Improvements
FY 2009 -10: $3,500,000
Estimated total project cost: $4,470,000
This project designs and constructs improvements recommended in the September 2005 Solids Handling
Facilities Plan Update for emergency and non - routine handling of biosolids. The improvements include a new
dewatered sludge storage and truck loading facility.
Aeration Air Renovations, Phase 2
FY 2009 -10: $1,950,000
Estimated total project cost: $2,100,000
This project will improve reliability of the above and below ground piping network, the in -tank air delivery
system, and the structural integrity of the aeration tanks. Cracks in the air plenum boxes will be repaired and
voids under the structures will be sealed with grout injection and coating. Components of the air delivery
system and the aeration basin will be replaced.
Piping Renovations, Phase 4
FY 2009 -10: $1,400,000
Estimated total project cost: $2,568,000
This project will improve reliability of the treatment plant's many piping systems, both above and below
ground, by renovation and /or replacement. Focus areas are the ash piping in the Solids Conditioning Building,
and air supply headers and downcomers at the aeration tanks. Also, six influent gates on the ultraviolet
disinfection facility will be replaced as part of this project.
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Plenum leakage was extensive prior to construction
of the Aeration Air Renovations Project.
COLLECTION SYSTEM
South Orinda Renovations, Phase 4
FY 2009 -10: $1,600,000
Estimated total project cost: $1,801,000
This project will replace or rehabilitate approximately 14,000 feet of 6- and 8 -inch sewer pipe in the public right -of -way
and easements at multiple sites in southern Orinda.
Lafayette Renovations, Phase 6
FY 2009 -10: $1,450,000
Estimated total project cost: $1,600,000
This project will replace or rehabilitate approximately 13,000 feet of 6- and 8 -inch sewer pipe in the public right -of -way
and easements at multiple sites in Lafayette.
M
South Orinda Renovations Project.
Walnut Creek Renovations, Phase 7
FY 2009 -10: $1,200,000
Estimated total project cost: $1,400,000
This project will replace or rehabilitate approximately 10,000 feet of 6- through 12 -inch sewer pipe at multiple sites in
the City of Walnut Creek, unincorporated county and other neighboring areas.
Pleasant Hill Renovations, Phase 1
FY 2009 -10: $1,300,000
Estimated total project cost: $1,500,000
This project will replace or rehabilitate approximately 11,000 feet of 6- and 8 -inch sewer pipe in the public right -of -way
and easements at multiple sites in Pleasant Hill.
Diablo Renovations, Phase 1
FY 2009 -10: $1,200,000
Estimated total project cost: $1,410,000
This project will replace or relocate approximately 12,000 feet of 6- and 8 -inch sewer pipe in the public right -of -way and
easements at multiple sites in Diablo and Danville.
2009 -10 Development Sewerage
FY 2009 -10: $1,180,000
This project provides for appropriate capitalization of District force account labor and other expenses for planning,
design, and construction of developer installed and contributed main sewer facilities. This annual cost is repeated each
year.
TV Inspection Program, Phase 2
FY 2009 -10: $1,100,000 per year
This is a large - scale, multiyear effort to inspect the entire CCCSD collection system using closed- circuit television
(CCTV.) A publicly bid CCTV inspection contract utilizing digital imaging and database software is awarded for each
year. The contractor's data is being integrated with existing CCTV inspection data and sewer information databases.
Currently sewers in Danville /Diablo are being televised, with sewers in Alamo and Moraga to follow. This annual cost is
repeated each year.
Miner Road Trunk Sewer, Orinda
FY 2009 -10: $987,000
Estimated total project cost: $1,450,000
This project will renovate approximately 4,000 feet of existing 15 -inch trunk sewer line and install passive overflows to
relieve a parallel 18 -inch sewer of excess wet - weather flows. This project is located in Miner Road and Lombardy Lane.
The design will evaluate various renovation methods to minimize the construction impacts to the public. The project is
being coordinated with EBMUD water main replacement to reduce construction impacts.
Proper safety techniques must be used when
entering sewers for construction purposes, such
as for the Miner Road Project, pictured here.
7
GENERAL IMPROVEMENTS PROGRAM
CSOD Facility Improvements
FY 2009 -10: $7,500,000
Estimated total project cost: $17,725,000
The project consists of design and construction of a new CSO administration, crew, and warehouse building.
The project also includes site improvements such as new paving and landscaping. Prior to construction, the
District will obtain permits from the City of Walnut Creek and address any City requirements. The project
is expected to be completed in spring 2011. Expenditures for this project may be delayed or accelerated
depending on the permitting process. Temporary relocation of CSO vehicles and personnel to Martinez is
being investigated to make the site completely available to the contractor. This is expected to reduce the total
duration and cost of the project, and could accelerate more expenditures into the FY 2009 -10 time period.
Construction of a new retaining wall was
completed in anticipation of the CSO Facility
Improvements Project.
S
American Recovery and Reinvestment Act Of 2009
In response to a significant downturn in the U.S. economy, the Federal Government recently passed the
American Recovery and Reinvestment Act of 2009. The intent of this Act is to quickly inject Federal stimulus
money into local economies through investment in infrastructure projects such as wastewater collection,
treatment and recycling facilities. For wastewater facilities, this reinvestment will be administered by the State of
California through its State Revolving Loan Program. The Federal and State governments are still developing the
details of how this Act will be implemented. District staff are monitoring information as it becomes available.
The District has answered a preliminary solicitation by submitting seven candidate projects for stimulus funding.
When the criteria for submitted projects are better understood, this list may be increased or decreased, as
appropriate. The stimulus funding could be in the form of low- interest loans and /or grant funding. The current
CIB schedules and budgets for submitted projects are noted below. Should the District qualify for and elect to
receive stimulus funding, some of the assumptions related to the schedules and budgets for these projects may
change. Staff's intent is to move forward with bidding the four submitted projects scheduled for 2009 -10 on their
current schedules, even if stimulus funds have not yet become available. This is recommended to take advantage
of the extremely favorable bid climate.
Of the seven projects listed below, the last three (Wet Weather Bypass Improvements, Primary Structures
Demolition, and Concord Recycled Water Project) are not budgeted for construction in FY 2009 -10 and will be
held in abeyance as "shovel- ready" projects until such time as the stimulus funding picture is defined. If stimulus
funding is received for any projects, the Board will be informed. If stimulus funding is received for projects not
currently budgeted to be constructed in 2009 -10, any necessary changes in budget authorizations outside of staff
authority will be requested from the Board via a position paper.
The projects submitted for stimulus funding during the preliminary solicitation are:
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Solids Handling Improvements ( Bid 2009 -10) Treatment Plant $4,470,000
Diablo Sewer Renovations, Phase 1 (Bid 2009 -10)
Collection System
$1,410,000
Pleasant Hill Sewer Renovations, Phase 1
Collection System
$1,500,000
(Bid 2009 -10)
CSOD Administration, Crew and Warehouse Facility
General Improvements
$17,725,000
Improvements (Bid 2009 -10)
Wet Weather Bypass Improvements (Bid 2010 -11)
Treatment Plant
$3,287,000
Primary Structures Demolition (Bid 2015 -16)
Treatment Plant
$1,474,000
Concord Recycled Water Project Phase 1
Recycled Water
$4,200,000
(Not scheduled or budgeted)
9
Historical Capital Improvement Program
To place this year's proposed C113 and Plan in perspective, it is helpful to review historical expenditures and
their relationship to revenue and the Sewer Construction Fund (SCF) balance. The following graph goes
back nine years and includes projected figures for FY 2008 -09, as well as budgeted figures for FY 2009 -10.
Over the last ten years, the District has attempted to keep expenditures close to revenues with the goal of not
reducing the SCF balance below the $30 million benchmark, which allows the SCF to act as the bank to meet
the District's cash flow needs between biannual receipt of revenue from Contra Costa County. Due to the
current economic downturn and the desire to minimize increases in Sewer Service Charges this year, capital
revenue is projected to be less than budgeted in 2008 -09 and is budgeted to decline substantially in FY 2009 -10.
To take advantage of the extremely favorable bid climate and to invest in the local economy, capital expenditures
are budgeted at $40 million, substantially higher than budgeted revenue of $25 million. However, expenditure
estimates are based on historical bid data, and we expect actual expenditures to be significantly less than
budgeted due to the reduced cost of construction bids. For this reason, we developed an adjusted expenditure
estimate of $36 million, which maintains a SCF balance of approximately $36 million— adequate to meet cash
flow needs, as shown below. This graph also shows both our SCF balance and revenue are projected to decline
significantly next year.
$70M
$60M
$50M
$40M
$30M
$20M
$10M
$OM
Actual Capital Revenue vs. Actual Capital Expenditures and SCF Balance
1999100 2000/01 2001102 2002103 2003104 2004105 2005/06 2006/07 2007/08 2008/09' 2009110*'
10
*projected "budgeted
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 2009 -10 through FY 2018 -19 and includes total expenditures of approximately $331 million
(in 2009 dollars), or an average of $33 million per year, as described in the following table:
Capital Program Expenditure Category
Renovation (One time and recurring)
Dollars
$206 million
Percent
62%
Expansion (Capacity increases /sewers for new customers)
$ 92 million
28%
Regulation Driven
$ 8 million
2%
Miscellaneous
$ 25 million
8%
Total 10 -Year Capital Program Expenditures
$331 million
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 2009 -10 Capital Improvement Budget section follows the table.
Capital Program/Subprogram
Treatment Plant Program
Planned 10 Year Expenditure
$108 million (33 %)
Regulatory Compliance
$ 5.0 million
One -Time Renovation
$ 28.4 million
Recurring Renovation
$ 44.8 million
Expansion
$ 29.0 million
Other Miscellaneous Projects
$ 0.5 million
Collection System Program
$172.3 million (52 %)
Renovation
$ 94.1 million
Regulatory Compliance /Planning
$ 2.7 million
Expansion /Capacity Improvements
$ 63.3 million
Pumping Stations /Force Mains
$ 12.1 million
General Improvements Program
$ 45.9 million (14 %)
Vehicles and Equipment
$ 9.7 million
Management Information Systems
$ 5.6 million
CSO Facility Improvements
$ 16.8 million
All Other
$ 13.8 million
Recycled Water Program
$ 5.5 million (1.7 %)
11
MAJOR TEN -YEAR TREATMENT PLANT PROJECTS/PROGRAMS
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;
$3,104,000 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; $3,150,000 estimated total project cost)
Primary Expansion: This project will add two primary sedimentation tanks to increase the plant's wet - weather
capacity to roughly 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 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; $25,805,000 estimated total project cost)
Recurring Renovation Program: 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. To maintain
the facilities in top operational condition, the Ten -Year Capital Improvement Plan sets aside funds for recurring
renovation. (Ten -year plan; $44,837,000)
Recurring renovation funds are used to keep
Treatment Plant facilities in top condition.
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MAJOR TEN -YEAR COLLECTION SYSTEM PROJECTS/PROGRAMS
Sewer Renovation Program: 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 836 miles of main sewers. The results
indicate approximately 3.8 %, or almost 34 miles of pipes, are in poor condition. Extrapolating the data to the
entire collection system shows 62 miles of sewer mains in poor condition, with a replacement cost of $90.4
million. The current ten -year plan targets approximately 60 miles of pipe for renovation /replacement.
(Ten -year plan; $94,100,000 estimated total project cost — includes TV program, large diameter pipe
renovation and cathodic protection)
Ongoing TV inspection of the collection system
helps to guide sewer renovation plans
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Sewer Capacity Program: 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 current figures are based on the 2000 Master Plan. The Capital Plan will be updated to
reflect the new results when available. (Ten -year plan; $63,300,000 estimated total project cost)
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Potential Future Projects
Not Included in Ten -Year Capital Improvement Plan
Anumber of potential projects may be required to meet regulations that are under consideration but not yet
enacted into law. One additional project, a recycled water project to supply two refineries in Martinez, may be
implemented if some financial partners can be identified.
The following table shows these potential projects and the estimated probability (low, moderate or high) of their
being implemented. To support these expenditures, additional revenues not currently identified in the ten -year plan
will need to be generated, or other projects will need to be deferred.
Description Time Frame Estimated'Total Estimated
Project Cost Probability
Treatment Plant: Hydraulic/Process Capacity
Filter Plant Expansion: Provide facilities to filter all secondary
3 -15 yrs
$135 - $150 million
Low
effluent during dry and wet weather to meet new regulations
such as metals reduction or provide additional effluent for water
recycling.
Nutrient Removal: Provide facilities for nutrient removal
10 — 20 yrs
$50 million
Low
(nitrogen and phosphorus).
Nitrification: Provide facilities for nitrification (ammonia to
5 —10 yrs
$50 million
Moderate
nitrate).
Treatment Plant: Solids Handling
Sludge Treatment Renovation and /or Expansion: Implement
3 -15 yrs
$30 - $50 million
Low
anaerobic digestion or thermal drying if future regulations
prohibit incineration.
Treatment Plant: Other Projects
Air Emissions Projects: Provide processes to control air toxics
5 -10 yrs
$25 - $30 million
Low
and odors and construct tank covers (primary and /or secondary).
Greenhouse Gas Reduction: Construct alternative energy
5 yrs
$25 - $50 million
High
projects to reduce or provide offsetting credits for emissions
of greenhouse gases.
Collection System: Regulatory Response
Sewer System Management Plan Projects: The SF Bay Regional
1 -5 yrs
$5 - $10 million
Moderate
Water Quality Control Board and the State Water Resources
per year
Control Board have put in place requirements for a Sewer
Maintenance Management Plan. The requirements may lead
to the need for an escalated capital program to televise and
renovate sewers.
Recycled Water: Water Supply Reliability
Martinez Refineries Recycled Water Project: This project could
1 -10 yrs
Up to $150 million
Moderate
improve water supply reliability on a regional and state -wide
level by making 20 mgd of recycled water available to local
refineries, therefore freeing up a like volume of raw water for use
to supply other customers or as environmental water for release
to the Delta. Due to the significant cost and the fact that water
supply is not the core mission of CCCSD, we are seeking outside
financial partners to make this project a reality. Currently the
budget only includes funds for planning activities related to
this project.
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Capital Revenue /Cash Flow/
Sewer Construction Fund Balance
CAPITAL REVENUE
The Capital Program is funded by a number of different fees and charges as described below.
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 dependent on the housing market and rate of new connections.
Pumped Zone Fees: For connections 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 highly dependent on the housing market and the rate of new connections in the pumped zones.
Property Taxes: Historically, the District has received significant revenues from property taxes. 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, after consideration of any increase or decrease to the Sewer Construction Fund Balance, is
generated by adjusting the capital component of the Sewer Service Charge.
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). Also, the District has formed Assessment Districts to promote
the installation of sewers in unsewered areas and loaned money from the Sewer Construction Fund for
construction of the sewers. This money is then repaid with interest to the 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 by utilizing bond funding to spread the payments over time.
15
The total budgeted revenue for FY 2009 -10 $25,238,000. It is made up of six major components as shown below.
FY 09 -10 Capital Budget Revenue
($1,000)
Sewer Service Charge
$4,870
Interest
$556
Taxes
$8,200
CASH FLOW/SEWER CONSTRUCTION FUND BALANCE
Facilities Capacity &
Pumped Zone Fees
$6,123
All Other
$961
Concord
$4,528
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
(SCF) balance.
Each year a policy decision is made by the Board of Directors, based on staff analysis and recommendations,
on the amount of the capital component of the Sewer Service Charge to fund the planned Capital Program
while maintaining an adequate SCF balance. The SCF 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 SCF.
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The following table shows cash flow projections for the next ten years, including planned expenditures,
revenues planned to fund the expenditures, and the utilization of the SCF. The table includes an inflation
factor of 3% per year.
' Ending fund balance on June 30, 2009 is estimated at $47,641.
z These numbers have been reduced by 20% for jobs bidding in 2009 -10 and by 10% for jobs bidding in 2010 -11 to reflect the
current aggressive bid climate.
s Short- or long -term borrowing may be necessary to meet District cash flow needs.
' $32,000 from bond proceeds.
As shown, the SCF 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 adjusted each
year to fund the planned expenditures and that, in several years, short- or long -term loans are used to supplement the
SCF balance.
Questions?
For additional information about the District's Capital Improvement Budget and Ten Year Plan, please contact
Director of Engineering Ann Farrell at (925) 229 -7302 or Capital Projects Division Manager Tad Pilecki at (925)
229 -7273.
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FY
Revenue
SEWER CONSTRUCTION FUND CASH FLOW PROJECTION
11I
Expenditures Net
Fund
Balance'
(Projected)
Treatment
Plant
Collection
System
General
Imp.
Recycled
Water
Subtotal
Increase
(Decrease)
09
$25,238
$13,069
$13,544
$9,037
$550
$36,200'
($10,962)
$36,679
10
$28,101
$7,924
$17,024
$10,465
$567
$35,980'
($7,879)
$28,8003
11
$32,736
$9,935
$18,156
$8,618
$583
$37,292
($4,556)
$24,2443
12
$31,884
$6,097
$18,839
$2,850
$601
$28,387
$3,497
$27,7413
13
$32,629
$7,449
$19,404
$2,299
$619
$29,771
$2,858
$30,599'
14
$35,142
$8,599
$19,986
$2,351
$638
$31,574
$3,568
$34,167
15
$36,902
$10,486
$20,585
$2,422
$657
$34,150
$2,752
$36,919
16
$67,261'
$20,330
$21,203
$2,482
$683
$44,698
$22,563
$59,482
17
$35,153
$27,299
$21,839
$3,063
$703
$52,904
($17,751)
$41,731
18
$35,385
$12,885
$24,513
$2,613
$724
$40,735
($5,350)
$36,381
' Ending fund balance on June 30, 2009 is estimated at $47,641.
z These numbers have been reduced by 20% for jobs bidding in 2009 -10 and by 10% for jobs bidding in 2010 -11 to reflect the
current aggressive bid climate.
s Short- or long -term borrowing may be necessary to meet District cash flow needs.
' $32,000 from bond proceeds.
As shown, the SCF 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 adjusted each
year to fund the planned expenditures and that, in several years, short- or long -term loans are used to supplement the
SCF balance.
Questions?
For additional information about the District's Capital Improvement Budget and Ten Year Plan, please contact
Director of Engineering Ann Farrell at (925) 229 -7302 or Capital Projects Division Manager Tad Pilecki at (925)
229 -7273.
17
Central Contra Costa Sanitary District
I FL
www.centralsan.org
2009/10 Capital Improvements
Program
Board Workshop
April 9, 2009
2009/10 Capital Improvements Program
Workshop
Agenda
• Review Board role in Capital planning and future
challenges
• Review planned 2009/10 Capital Expenditures
• Review programs and selected 2009/10 projects
— Collection System Program
— Treatment Plant Program
— Recycled Water Program
— General Improvements Program
• Revisit future planning challenges and review next
steps in Capital Budgeting process
Capital Improvement Budget Summary for
FY 2009/10
Board Role in Capital Program is Ongoing
• Authorize Program Budgets each fiscal year in June
• Re- authorize Program Budgets in August with actual
carryover amounts
• Authorize Supplemental Program Funds if needed
• Create New Projects > $25,000
• Award Construction Projects > $15,000
• Authorize Construction Change Orders >$50,000
• Authorize Consultant Contracts > $50,000
• Authorize Revisions to Consultant Contracts > 15%
Estimated
Estimated
Estimated
Total
Program
FY 2009/10
Carry-over
Allocation
FY 2009/10
Program
from Prior
FY 2009/10
Proposed
Expenditures
Fiscal Year
Authorization
Treatment Plant
$13,769,000
$12,754,000
$8,829,000
$21,583,000
Collection
$15,161,000
$6,529,000
$19,064,000
$25,593,000
System
General
$10,637,000
$720,000
$19,893,000
$20,613,000
Improvements
Recycled Water
$550,000
$188,000
$545,000
$733,000
Total
$40,117,000
$20,191,000
$48,331,000
$68,522,000
FY 2009/10
Board Role in Capital Program is Ongoing
• Authorize Program Budgets each fiscal year in June
• Re- authorize Program Budgets in August with actual
carryover amounts
• Authorize Supplemental Program Funds if needed
• Create New Projects > $25,000
• Award Construction Projects > $15,000
• Authorize Construction Change Orders >$50,000
• Authorize Consultant Contracts > $50,000
• Authorize Revisions to Consultant Contracts > 15%
Next Steps in CIB /CIP Process
• May 7, 2009 set Public Hearing for CIB /CIP
• June 4, 2009 hold Public Hearing and Approve
CIB /CIP at same time as other budgets (new)
• June 4, 2009 Board Adopts all Budgets, including
CIB /CIP, officially Authorizing the FY 2009/10 CIB
• Revise CIB /CIP Revenue and Cash Flow Sections if
needed to reflect other than $10 SSC increase (new)
• June 18, 2009 Board Approves Closeout Position Paper
for completed CIB projects
• Hold Board briefing on closed out projects for any
interested Board members after June 18, 2009
• August 2009, ask Board to Reauthorize FY 2009/10 CIB
with actual carryover amounts
Stay the Course until November 2009 then
revisit emphasis of Capital Program....
• Increase Revenues by Amount of Stimulus Funding If
Received?
• Increase Revenues by $30 million in Bond Sales to
Construct Needed Projects?
• Reduce Capital Expenditures due to Reduced
Revenues?
• Expand or Contract Renovation Program?
• Add Projects to Reduce Green House Gas Emissions?
• Adjust Treatment Plant Renovation budget based on
Asset Mgmt Plan?
• Add projects for Seismic Retrofit?
• Invest more in Recycled Water Projects?
FY 2009/10 Expenditure
Recommendations
EXPENDITURES (% Capital Program)
FY 2009/10
Collection System
$15,161,000 (38 %)
Treatment Plant
$13,769,000 (34 %)
General Improvements
$10,637,000 (27 %)
Recycled Water
$550,000 (1 %)
TOTAL EXPENDITURES
$40,117,000 (100 %)
FY 2009/10 Expenditure Recommendations
EXPENDITURES
FY 2009/10
FY 09/10 Reduced
(% Capital Program)
Expenditures*
Collection System
$15,161,000 (38 %)
$13,544,000 (37 %)
Treatment Plant
$13,769,000 (34 %)
$13,069,000 (36 %)
General
(27%)
000 637
$10,,
$9,037,000 (25 %)
Improvements
Recycled Water
$550,000 (1 %)
$550,000 (2 %)
TOTAL
$40,117,000 (100 %)
$36,200,000 (100 %)
EXPENDITURES
*Assumes projects bid in 2009/10 come in 20% below Engineers Estimate
Tracking of Bid Results Confirms 20 %
Assumption
• Bid data from CCCSD, VSFCD, DSRSD, EBMUD,
SJWPCP, CalTrans
• Total Engineers Estimate for 30 projects in survey
$100,334,144
• Total Low Bid for 30 projects in survey $79,615,390
• Low Bid 21% below Engineers Estimate on Average
• Staff will continue to track and advise Board if
conclusion changes significantly....
Current Bid Flowchart Requires
Significant Labor and Paper
GM notifies DPM transmits approval to Notice to
Advertise, Notice to Contractors
BOD of Bid Contractor, and Advertising Published
memo to District Secretary
Secretary
prepares plan
RSC prints bid Permit counter supplies bid documents to walk -in holders list
docs bidders / Secretary supplies bid documents to all
telephone requests
DPM prepares DPM answers DPM holds pre- Information
addendum questions bid meeting posted on
website
Addendum DPM prepares meeting
distributed by minutes and distributes to
certified mail 5 plan holders and file
days prior to bid
opening and adds
to bid documents
BID OPENING
DPM extends bid
opening if needed
Bid Results posted on
the Website
�s c'1sc.».cen c.os....od.n Z. LL rn• _.,a..
Coms ,on tone
•ntral Contra Costa Sanitary District (CO.. .
r,pecial district that collects and clean, .r•. „ ..�.. >.,,
-: /®rage of 45 million gallons of wastewater pPr
y for approximately 450,000 residents and .
ismesses in central Contra Costa County. r� I �'-L1nk to
DI +0;,4
[4pGp NBwskOtl � Public Notices .'
>>> <cccsd @planetbids.com> 4/3/2009 3:53:02 PM >>>
Dear JP Test Bidder
A new Bid request, PlanetBids Demo Construction Project has just
been issued by Central Contra Costa Sanitary District
and you are being invited to participate as a bidder.
Please visit
htto://vendors.DIanetbids.com /cccsd /biddti.cfm ?BidNo= 252 &Header =1 &
CompanylD =10945 for further details!
Thank You,
Central Contra Costa Sanitary District
51
Planet Bids Benefits Are Many
• Reduces costs
— Typical Plan set printing ranges from $25 for small jobs to $70 for
larger jobs and print 75 -125 sets
— District gives one free set and charges $25 each additional set
— Bid 30 to 35 projects per year
— Provide option of CD
• Saves time
— Currently hiring temporary clerical help each bid season
• Quicker information
• Reduced paper consumption
• Nationwide publication
Planet Bids Cost Is Very Reasonable
$7,500 Initial Setup
$5,000 Annual License
Will be Pilot Testing this Bid Season
Will also be making CD's available at no charge
If Successful, will begin charging more for paper next bid
season.......
7
FY 2009 -10 Collection System Program
Expenditures by Subprogram
Program /Subprogram
FY 2009 -10 Expenditures
Total Collection System Program
$15.2 million (100 %)
Renovation
$10.0 million (66 %)
Expansion /Capacity Improvements
$3.8 million (25 %)
Pumping Stations /Force Mains
$1.1 million (7 %)
Regulatory Compliance /Planning
$0.3 million (2 %)
2009/10 Large Project Expenditures
Collection System Program
PROJECT
2009/10
Expenditures
Total
Project Cost
South Orinda Renovations Phase 4
$1,600,000
$1,801,000
Lafayette Renovations Phase 6
$1,450,000
$1,600,000
Pleasant Hill Renovations Phase 1
$1,300,000
$1,500,000
Diablo Renovations Phase 1
$1,200,000
$1,410,000
Walnut Creek Renovations Phase 7
$1,200,000
$1,400,000
2009 -10 Development Sewerage
$1,180,000
$2,360,000
TV Inspection Program Phase 2
$1,100,000
$5,600,000
Miner Rd Orinda, Tr 02 -200
$987,000
$1,450,000
Total Collection System Projects <$900,000
$5,144,000
NA
Total Collection System Program `
$15,161,000
NA
*Discussion of A -Line Project and Renovation Programs to follow
Ten Year Capital Improvement Program of
$331 million includes approximately $94
million or almost 30 % of the CIP for
Collection System Renovation
Investment in Sewer Renovation Continues.....
*Estimated at $250/ft for 2009/10 - $280/ft for subsequent years
N
FY 90/91 — 99/00
4 Miles /Year = 40 Miles
10 Yr Cost = $40 M
Renovation
FY 00/01 — 08/09
5.4 Miles /Year = 48.4 Miles
Program
9 Yr Cost = $57.3 M
FY 09/10 — 18/19
6.0 Miles /Year = 60 Miles
10 Yr Cost = $87.9 M*
TV Program
1100 Miles of 1500 Miles of District Sewers
Inspected to Date
*Estimated at $250/ft for 2009/10 - $280/ft for subsequent years
N
Definition of Future Needs Continues...
• Extrapolation of TV results indicates that about 75
miles of 6,8 and 10 -inch sewer mains still need to be
renovated
• Plan next 10 years — 60 miles renovated
• 15 miles will remain after next ten years unless rate
of renovation expenditures are increased or cost per
mile decreases
• Sewers will continue to deteriorate
Continue to "right size" sewer renovation
program...
• Complete TV program / validate extrapolation figures
• Complete Collection System Master Plan to validate and
revisit cost/timing of needed capacity projects
• Continue to review /optimize right of way /design /construction
process to minimize project costs
• Update report to Board for November 2009 CIB Workshop
on "Right Sizing" renovation program
• Provide data on past, current and future expenditures per
community to better understand where $$ are being spent
10
A -line Phase 2A Project Nears
Completion....
• Construction began February 2008
• Start Connection of Concord Flow April 2009
• Complete Connection of Concord Flow June 2009
• Commission Project & Celebrate July 2009
Total Construction Cost $20.6 million
Total Project Cost $23.3 million
11
a
FY 2009/10 Treatment Plant Program
Expenditures by Subprogram
Program /Subprogram
FY 2009 -10 Expenditures
Total Treatment Plant Program
$13.8 million (100 %)
One -Time Renovation
$6.9 million (50 %)
Regulatory Compliance /Planning
$3.9 million (28 %)
Recurring Renovation
$2.7 million (20 %)
Expansion /Capacity Improvements
$0.1 million (1 %)
Other Miscellaneous Projects
$0.2 million (1 %)
2009/10 Large Project Expenditures
Treatment Plant Program
PROJECT
2009110
Expenditures
Total Project Cost
Standby Power Facility Improvements
$3,700,000
$5,605,000
Solids Handling Improvements
$3,500,000
$4,470,000
Aeration Air Renovations Phase 2
$1,950,000
$2,100,000
Piping Renovations Phase 4
$1,400,000
$2,568,000
Total Treatment Plant Projects< $1,000,000
$3,219,000
NA
Total Treatment Plant Program "
$13,769,000
NA
*Discussion of Plant Hydraulic Model, Asset Management, Standby Power,
Control Room, Mercury Removal and Green House Gas Emissions to follow
14
m1
01w
Stn
1
BrPK.
Pump
CENTRAL CONTRA COSTA SANITARY DISTRICT Q'
PLANT HYDRAULIC MODEL e.
MENU BUTTONS
PNm.ry Fln.l W T.nN
ENlu.nl EMY.M
Pump Pump
—
—y� NPM W.Ir
- .r52 I
PR ♦♦ aWlrw�- P .�
CMMMMI n..1
4i
-ML RM TK..
Ix "9aconcery EM-1 Llrm n+mn BKlns
ie INN, 1'
NoM
Slrurtur. SlruMUre
�
��wnr Plant Flew. UnX In U... = UnX Not In um.. / 1. \ CXKh FIOOO Sblua
[� CENTRAL CONTRA COSTA SANITARY DISTRICT
_=11-1 PLANT HYDRAULIC MODEL w `�
MENU BUTTONS
.,• 1. rleM of UV ianka f ~
11 �, ®
emu. Emuon t � 110
Pump Pump.l r —
�W.Ir
1\ Pnmp ♦ � , __�____ � ♦ Pump
- � I �_aa.awen.aea I
ueM �a� CIa.rNNl
p
(� I SS' ML
r Pl.nt BBMn.
omen � Tr s.mnwrvEmuem
Martha. Line B.._ nt.mn
N-
Stnmtum 9tnNlun
t n Mgg P11M Flovn Unit in Service UnX Not In S-1.. � CXK. FIOK Sutus
Model 215 mgd thru Primaries &110 mgd thru Secondaries /UV
15
CENTRAL CONTRA COSTA SANITARY DISTRICT I�ilw�r
PLANT HYDRAULIC PROFILE h.
MENU BONS
18,�ID 113.231
_122,10 2H2D 113.10
North
Mal
!
South 110 D2 Ty3 .\ 105 04 ]
MW I v ,nr r.,aa nr Hove si.,ers
Hydraulic Profile shows 215 mgd`over-flows preaeration tanks whi
110 mgd passes secondaries /UV with some weir submergence
Using Asset Management Techniques for
Capital Prowect Forecasting
The District will focus on "capital project forecasting" by anticipating the
retirement and refurbishment of assets and planning for adequate funding.
Assets
Condition Assessment ' us Hess Risk Exposure BRE
- Remaining use life? - Consequences of failure (criticality)?
- Deficiencies? d of failure?
/ Determine Projects & Group
Appropriately
Determine Funding Strategy
(CIP & Rate - Setting)
16
Condition Rating Is the Key to Prioritizing
Expenditures
Table is based on International Infrastructure Management Manual's
Condition Rating Model. This allows us to compare different types of
assets (mechanical, electrical, civil, etc.).
The actual replacement or refurbishment project will refer back to the
condition assessment for specific details about what work needs to be
done.
NexGen Software Will Be Used to
Manage Information
rs Nexge ^,w. wlndam ln,erirclEWmr -- -- _ -,
u��0 Fo,ew.lm:: 25 •�
i � t
war tRr i
�nr �� eerie S�faw�Cae
@Mulare
<sno I1 g 0 9 5 C C T G X 1 y n M
Y
u_ec. lOeEM>d o11a r Y♦
17
1
Excellent
No visual defects. Only normal maintenance required.
2
Good
Minor defects only. Minor maintenance required (5 %).
3
Fair
Maintenance required to return to accepted level of service. Significant maintenance
required (1620 %)
4
Poor
Significant renewal /upgrade required (20 -50 %)
5
Unacceptable
Asset unserviceable. Over 5D% of asset requires replacement
Table is based on International Infrastructure Management Manual's
Condition Rating Model. This allows us to compare different types of
assets (mechanical, electrical, civil, etc.).
The actual replacement or refurbishment project will refer back to the
condition assessment for specific details about what work needs to be
done.
NexGen Software Will Be Used to
Manage Information
rs Nexge ^,w. wlndam ln,erirclEWmr -- -- _ -,
u��0 Fo,ew.lm:: 25 •�
i � t
war tRr i
�nr �� eerie S�faw�Cae
@Mulare
<sno I1 g 0 9 5 C C T G X 1 y n M
Y
u_ec. lOeEM>d o11a r Y♦
17
Next Steps In Capital Project Forecasting
• Continue to populate and evaluate NexGen Asset
Management software
• Continue asset inventory
— Electrical feeders
— Piping
• Additional RFPs for:
— Mechanical equipment condition assessment
— Protective Coatings condition assessment
— Electrical equipment condition assessment
— Piping inventory and condition assessment
iu
P A
Come visit us for a personal tour of our new Plant Control System!
Control System Must Integrate Standby Power
Seamlessly with Cogen and Utility Power
?eao-en:e leem�n
wrCOpen:
"hm-aly bnarlw ®. ce0t w11an Glanl
ollUDueM bWgB' Stan�y oowwr Iry LIS�'
19
Onsite Engine Generator Set Factory Test
Was Successful
16 Cylinder Engine is Built to Last
20
Standby Power Construction Schedule Is
Protracted due to Long Lead Time Equipment
• Notice to Proceed
• Project Duration
• Project Completion
June 20, 2008
840 days / 2.3 years
October 10, 2010
• Contractor pushing for early completion November
2009 if technical issues can be resolved
Incinerator Focus to Change from
Mercury Control to ? ??
• Mandatory Amalgam Separator Program implemented by
December 2007, reduced mercury influent by 70% and
mercury effluent by 50% with no modifications to Incinerators.
• Design of Sludge Hauling Facility underway/ Construction
2009/10.... will allow sludge hauling if Incinerator mercury
emissions or plant effluent mercury become an issue.
• Dry Scrubber Pilot Plant operation problematic but still
attempting to gather some good data.
• Awaiting outcome of USEPA review of Clean Air Act regulation
of Sewage Sludge Incinerators....
• Will then revisit incinerators optimization /renovation
— Burner replacement/optimization
— Wet Scrubber replacement
— Other
21
Ten Year Treatment Plant Capital
Improvement Program does NOT Budget
for Projects to Respond to Climate Change
and Green House Gas Regulations.
Regulations being developed for Green
House Gas (GHG) reductions could have
significant impacts....
• AB 32 (2006 Global Warming Solutions Act)
— Reduce statewide GHG emissions to 1990 levels by 2020
(approx. 25% reduction)
— Requires Air Resources Board to develop regulations om
1.GHG reporting by 2008
2. Specific GHG emission reduction requirements by 2012
(Implementation Plan)
• Governor's Executive Order
— Reduce statewide GHG emissions by an additional 80% by 2050
Next Steps to Comply with AB32
• Proactively monitor AB 32 regulatory development
• Submit 2008 GHG inventory to ARB in April 2009
• Develop Approach for GHG Predictive Scenario Model
• Develop potential scenarios for meeting 24% ++
reduction... include in next years 10 -year CIP
• Analyze GHG impacts of future projects in CIB, as
necessary and consider any needed offsets
• Follow development of carbon trading markets and how
this fits into GHG compliance strategies.....
2009/10 Expenditures
Recycled Water Program
PROJECT
2009/10
Total Project
Expenditures
Cost
Zone 1 Recycled Water Phase 1C
$340,000
$1,546,000
Total Remaining Recycled Water Projects
including Industrial Concepts Planning and
$210,000
NA
Concord Naval Weapons Station
Total Recycled Water Program
$550,000
NA
23
Martinez Refinery Recycled Water Project
Concord Naval Weapons Station
StR`4
ji
I9
It i xasa w�rc�s su�io. _
�a
-
no
3:� � ! • __ ■ -- - -•— - -. �. _ Iacono wx rKarar. sraa+ -
AECVa6n wr,� Ana
24
2009/10 Expenditures
General Improvements Program
PROJECT
2009 -10
Total
Expenditures
Project Cost
CSOD Facility Improvements
$7,500,000
$17,725,000
Vehicles and Equipment Acquisition
$1,000,000
$1,000,000
Total General Improvements Projects
$2,137,000
NA
< $700,000
Total General Improvements Program
$10,637,000
NA
*Detailed discussion of CSO Facility Improvements Project at
April 16 Board Meeting
EXTERIOR ELEVATIONS ^- V
COLLECTION SYSTEMS OPERATIONS DIVISION o,=
CENTRAL CONTRA COSTA SANITARY DISTRICT
25
CSO PROJECT APPROVAL PROCESS
ADMINISTRATIVE DRAFT MND REVIEW BY THE CITY OF
SEPTEMBER 13, 2007
J
WALNUT CREEK
CITY PLAN CHECK (FOR BUILDING PERMIT) AND
DRAFT MND AVAILABLE FOR PUBLIC REVIEW
NOVEMBER 9, 2007
SITE DEVELOPMENT PERMIT
END OF PUBLIC REVIEW PERIOD
DECEMBER 10, 2007
AUGUST-SEPTEMBER
CCCSD BOARD APPROVES MND, MMRP, AND
DECEMBER 20, 2007
PROPOSED PROJECT
CCCSD SUBMITS CONDITIONAL USE PERMIT (CUP)
JANUARY 14, 2008
APPLICATION CITY OF WALNUT CREEK
CITY REVIEW OF CUP APPLICATION
(130 detailed comments rec'd Feb 14lresubmital with
JANUARY - APRIL 2008
comments incorporated April 9)
CITY STAFF DEEMS APPLICATION COMPLETE
MAY 2008
CITY DESIGN REVEW COMMISSION HEARING
MAY - JUNE 2008
CITY PLANNING COMMISSION HEARING
JULY 2008
WC CONDITIONAL USE PERMIT APPROVAL
AUGUST 2008
CCCSD BOARD PROJECT APPROVAL
NOVEMBER 2008
PRELIMINARY CSO FACILITY
DESIGN /CONSTRUCTION SCHEDULE
PREPARE DETAILED DESIGN PLANS AND
NOVEMBER 2008 -
SPECIFICATIONS FOR BIDDING
MAY 2009
CITY PLAN CHECK (FOR BUILDING PERMIT) AND
MAY - JULY 2009
SITE DEVELOPMENT PERMIT
AUGUST-SEPTEMBER
BIDDING /AWARD OF CONSTRUCTION CONTRACT
2009
26
FY 2009/10 Expenditure Recommendations
EXPENDITURES
FY 2009/10
Reduced
(% Capital Program)
FY 2009/10
Expenditures
Collection System
$15,161,000 (38 %)
$13,544,000 (37 %)
Treatment Plant
$13,769,000 (34 %)
$13,069,000 (36 %)
General
$10,637,000 (27 %)
$9,037,000 (25 %)
Improvements
Recycled Water Sales
$175,000
Recycled Water
$550,000 (1 %)
$550,000 (2 %)
TOTAL
$40,117,000 (100 %)
$36,200,000 (100 %)
EXPENDITURES
FY 2009/10 Budgeted Revenue
Revenues
FY 2009/10
Facility Capacity Fees
$5,298,000
Pumped Zone Fees
$825,000
Interest
$556,000
Ad Valorem Taxes
$8,200,000
Sewer Service Charges
$4,870,000
City of Concord
$4,528,000
Alhambra Valley Reimbursements
$359,000
Recycled Water Sales
$175,000
Developer Fees & Charges & Other
$427,000
Total Revenue
$25,238,000
*Based on $10 SSC Increase
27
Residential Unit Equivalents (RUE) Added
(Includes Commercial and Residential)
wc^
�c ^
I "aB
t!C'
tlCJ
1 +cz /
13C^ i�
D'
a
uc
tY
E 3CC
2 ![^
!C'
i
+r
3C^
.CS
CJ
J.. -I eLG SE.- ]CT ND: DEC. —1 fEB —P A-P M.' _..1.
Monthly X 2003 -09 X 2007 -G8 ® 200!7 -07
Yearly - 2003 -09 2007 -0S 200!' -07
FY 2009/10 Capital Cash Flow Estimate
*Assumes beginning SCF Balance $47.6 M (7/1/2009)
28
2009/10
Capital Program Cash Flow
2009/10
Reduced
Expenditures
Total Budgeted Revenue
$25,238,000
$ 25,238,000
Total Budgeted Expenditures
$40,117,000
$36,200,000
Negative Variance
- $14,879,000
- $10,962,000
Projected SCF Balance
$32.8 M
$36.7 M
June 30, 2009
*Assumes beginning SCF Balance $47.6 M (7/1/2009)
28
Actual Capital Revenue vs. Actual Capital Expenditures and SCF Balance
S7OM
$60M
SCF Balance
S60M
$40M
S30M= Sower Construction FurWs Requwed
roM
tual EXPense
S20M
Actual Revenue
SIOM
SOM
1999100 2000101 2001102 2002103 2003104 2004106 2006106 2000/07 2007/OS 2005109' 2009110"
'pro�r•rt � -'CUtlaHCd
SSC Increases with No Bond Financing for CIP
SSC Increase $10 $20 $24 $8 $8 $8 $8 $6 $6 $6
60,000
70,000
Total Funds Available
60000
N
v 50.000 — — —
a \M
L
.E 40,000
e - - -•-' Total Funds Required
S 30,000 - -
20,000 - -
10,000
0
2009.10 2010.11 2011 -12 2012 -13 2013.14 2014.15 201516 2015-17 2017 -18 2018 -19
FT,
Sewer Construction Fund Cash Flow Projection
$t DDD
Fy Revenue
Expenditures
Net Fund
Increase Balancs
(Decrease) (Projected)
Treatment
PIaM
Collection
S atom
General
Im .
Recycbd
Water
Subtotal
09
f28,238
$13,089
§13,544
§9,037
$550
$18,2007
( §10,862)
$38,679
10
$28,101
§7,924
§17,024
$10,485
§567
$35,8807
(§7,679)
$28,800
11
$32,736
9,935
§18,158
$8,818
$583
$37,292
(§4,556)
524,2147
12
531,884
$6.097
§18,839
52,850
$801
128,587
$3,497
$27,7417
13
$32,629
$7,449
$19,404
$2,299
$619
$29,771
$2,858
$30,5997
14
S36,142
$8,599
$19,988
$2,351
$638
531,574
$3,568
$34,187
15
$18,902
$10,488
§20,585
$2,422
$657
S34,150
$2.752
$36,918
18
$67,281
520,330
$21,203
$2,482
5883
$44,696
$22,583
$69,482
17
556,183
$27299
$21,839
§3,083
$703
$52,904
($17,751)
141,731
18
S35,386
$12,885
§24,513
$2,813
$724
$40,736
($5,350)
$38,381
1 Ending
2 These
bidding
Short-
4 $32,000
fund
numbers
in 2010
or long
from
balance on
have been
-11 to reflect
-term borrowing
bond proceeds.
June 30, 2009
reduced
the current
may
is estimated
by 20%
aggressive
be necessary
at
for jobs bidding
bid
to meet
$47,841.
in 200910
climate.
District
and
cash flow needs.
by 10% for jobs
Sewer Construction Fund Cash Flow Projection
$t DDD
Fy Revenue
Expenditures
Net Fund
Increase Balancs
(Decrease) (Projected)
Treatment
PIaM
Collection
S atom
General
Im .
Recycbd
Water
Subtotal
09
f28,238
$13,089
§13,544
§9,037
$550
$18,2007
( §10,862)
$38,679
10
$28,101
§7,924
§17,024
$10,485
§567
$35,8807
(§7,679)
$28,800
11
$32,736
9,935
§18,158
$8,818
$583
$37,292
(§4,556)
524,2147
12
531,884
$6.097
§18,839
52,850
$801
128,587
$3,497
$27,7417
13
$32,629
$7,449
$19,404
$2,299
$619
$29,771
$2,858
$30,5997
14
S36,142
$8,599
$19,988
$2,351
$638
531,574
$3,568
$34,187
15
$18,902
$10,488
§20,585
$2,422
$657
S34,150
$2.752
$36,918
18
$67,281
520,330
$21,203
$2,482
5883
$44,696
$22,583
$69,482
17
556,183
$27299
$21,839
§3,083
$703
$52,904
($17,751)
141,731
18
S35,386
$12,885
§24,513
$2,813
$724
$40,736
($5,350)
$38,381
SSC Increases with $30M Bond Financing for CIP
SSC Increase $11 $11 $11 $11 $11 $11 $11 $10 $10 „ .,
80.000
70,000
Total Funds A- il.ihle
60,000
9 50,000
40,000
C
_m
8 30,000
Total Funds Required
20,000
10,000
0
2008 -70 2010 -11 2011 -12 2012 -73 2013.14 2014 -15 2015 -18 2018 -17 2017 -15 2018 -19
30
Projects Serving Future Rate Payers
Suitable for Bond Financing......
• Solids Handling Improvements (2009 -10)
$3,505,000
• CSOD Facility Improvements
(2009 -10)
$16,768,000
• Wet Weather Bypass Imprvnts
(2010 -11)
$2,660,000
• San Ramon Sch C Interceptor
(2010 -11)
$3,282,000
• Primary Structure Demolition
(2010 -11)
$1,474,000
• Seismic Improvements Est.
(20010 -11)
$6,000,000
• Incinerator Improvements Est.
(20010 -11)
$4,000,000
$30 + million in needed projects available
for funding in next two years...... .
Receipt of Federal Stimulus Funding
Would Also Improve Revenue Stream....
• Solids Handling Improvements
(2009 -10) $4,470,000
• Diablo Sewer Renovations, Phase 1
(2009 -10) $1,410,000
• Pleasant Hill Sewer Renovations, Ph
1 (2009 -10) $1,500,000
• CSOD Facility Improvements
(2009- 10)$17,725,000
• Wet Weather Bypass Imprvnts
(2010 -11) $3,287,000
• Primary Structure Demolition
(2010 -11) $1,474,000
• Concord Recycled Water Project Phase 1 $4,200,000
$34 + million in budgeted projects submitted for
stimulus funding.......
31
Stay the Course until November 2009 then
revisit emphasis of Capital Program....
• Increase Revenues by Amount of Stimulus Funding If
Received?
• Increase Revenues by $30 million in Bond Sales to
Construct Needed Projects?
• Reduce Capital Expenditures due to Reduced
Revenues?
• Expand or Contract Renovation Program?
• Add Projects to Reduce Green House Gas Emissions?
• Adjust Treatment Plant Renovation budget based on
Asset Mgmt Plan?
• Add projects for Seismic Retrofit?
• Invest more in Recycled Water Projects?
Capital Improvement Budget Summary
for FY 2009/10
32
Estimated
Estimated
Estimated
Total
Program
FY 2009/10
Carry -over
Allocation
FY 2009/10
Program
from Prior
FY 2009110
Proposed
Expenditures
Fiscal Year
Authorization
Treatment Plant
$13,769,000
$12,754,000
$8,829,000
$21,583,000
Collection
$15,161,000
$6,529,000
$19,064,000
$25,593,000
System
General
$10,637,000
$720,000
$19,893,000
$20,613,000
Improvements
Recycled Water
$550,000
$188,000
$545,000
$733,000
Total
$40,117,000
$20,191,000
$48,331,000
$68,522,000
FY 2009/10
32
Next Steps in CIB /CIP Process
• May 7, 2009 set Public Hearing for CIB /CIP
• June 4, 2009 hold Public Hearing and Approve
CIB /CIP at same time as other budgets (new)
• June 4, 2009 Board Adopts all Budgets, including
CIB /CIP, officially Authorizing the FY 2009/10 CIB
• Revise CIB /CIP Revenue and Cash Flow Sections if
needed to reflect other than $10 SSC increase (new)
• June 18, 2009 Board Approves Closeout Position Paper
for completed CIB projects
• Hold Board briefing on closed out projects for any
interested Board members after June 18, 2009
• August 2009, ask Board to Reauthorize FY 2009/10 CIB
with actual carryover amounts
Questions?
Staff is available to stay after meeting for any
detailed technical question.