HomeMy WebLinkAboutCAPITAL PROJECTS AGENDA 08-30-1111 Central Contra Costa Sanitary District
SPECIAL MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
CAPITAL PROJECTS COMMITTEE
Chair McGill
Member Hockett
Tuesday, August 30, 2011
3:00 p.m.
Second Floor Conference Room
5019 Imhoff Place
Martinez, California
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
BO4RD OF DIRECTORS
BARBAR 4 D. HOC'KETT
Presldent
J. 4AIESA. AEJEDLY
Presldent Pro Tem
AITCH.4EL R. A1('GILL
AL 4RI0 AL ,1IE. \ESL\ I
DAT7DR. TILLIAAIS
PHOAE: (925) 228 -9500
F II: (925) 676 -7211
www centralsan.org
Anyone wishing to address the Committee on an item listed on the agenda will be heard when the
Committee Chair calls for comments from the audience. The Chair may specify the number of minutes
each person will be permitted to speak based on the number of persons wishing to speak and the time
available. After the public has commented, the item is closed to further public comment and brought to the
Committee for discussion. There is no further comment permitted from the audience unless invited by the
Committee.
ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA
In accordance with state law, the Committee is prohibited from discussing items not calendared on the
agenda. You may address the Committee on any items not listed on the agenda, and which are within their
jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be
referred to staff for action or calendared on a fixture agenda.
AGENDA REPORTS
Supporting materials on Committee agenda items are available for public review at the Reception Desk,
5019 Imhoff Place, Martinez. Reports or information relating to agenda items distributed within 72 hours
of the meeting to a majority of the Committee are also available for public inspection at the Reception
Desk. During the meeting, information and supporting materials are available in the Conference Room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra
Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone,
including those with disabilities. If you are disabled and require special accommodations to participate,
please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303.
Capital Projects Committee
August 30, 2011
Page 2
Call Meeting to Order
2. Public Comments
*3. Review Capital Program Fiscal Year 2010 -2011 Year -End Financials
Staff Recommendation: Review the financials and receive the report.
*4. Review Project Closeout memo
Staff Recommendation: Review the memo and receive the report. Staff will
be available to answer questions on the projects contained within the
memo.
5. Review revised Capital Program Authorization Limits (Table 1) needed for FY
2011 -12 based on end of FY 2010 -11 financial data (Item 10.c. in Board Binder)
Staff Recommendation: Recommend Board approval of revised limits.
*6. Discuss staff and Board authority limits for Capital- Project - related items and
consider increased authority where appropriate
Staff Recommendation: Provide input to staff on authority limits.
*7. Review Capital Project expenditure versus contractor costs
Staff Recommendation: Review efficiency and receive the report.
*8. Discuss how adding the current ly- unbudgeted construction of the Concord
Recycled Water Landscape Project and development of the Martinez Recycled
Water Refinery Feasibility Study to the Recycled Water Program of the Capital
Budget could be accommodated, if the Board desires (Preliminary work would
start in FY 2011 -12, and construction of the Concord project would occur in FY
2012 -13). The matter of reviewing funding options for these projects was
referred to the Capital Projects Committee by the Recycled Water Committee at
its August 18, 2011 meeting.
Staff Recommendation: Review options for modifying the FY 2011 -12
Capital Budget and Plan to accommodate the construction of the Concord
Landscape Project and development of the Feasibility Study for the
Martinez Refinery Feasibility Study, if the Board wishes to approve the
projects.
Capital Projects Committee
August 30, 2011
Page 3
9. Review Position Paper authorizing the General Manager to execute an
amendment to an existing agreement with Complete Project Solutions, Inc. to
increase the cost ceiling from $60,000 to $270,000 for professional engineering
services for design of seismic upgrades for the Pump and Blower Building,
District Project 7291 (Item 9.a. in Board Binder)
Staff Recommendation: Recommend Board authorization.
10. Reports and Announcements
11. Suggestions for future agenda items
12. Adjournment
* Attachment
FY 2010 -11
CAPITAL IMPROVEMENT
BUDGET
YEAR END STATUS REPORT
September 1, 2011 Board Meeting
.- 41LI1� Central Contra Costa Sanitary District
Actual FY 2010 -11
Capital Program Activity
*Budget if $16 sewer service charge increase adopted.
** Beginning balance 7/1/10 $65.6 M including $30 M bonds.
3
1
Budgeted 2010 -11
Actual 2010 -11
Total expenditures
$28.5 M
$28.0 M
$19.7 M
Total revenue
($22.4 M *)
$16.4 M
-$8.8 M
Reduction In SCF Balance
-$11.6 M
(- $6.1M *)
$56.8 M
Sewer Construction Fund
($59.5 M *)
$54.0 M
Balance 6/30/2011 **
*Budget if $16 sewer service charge increase adopted.
** Beginning balance 7/1/10 $65.6 M including $30 M bonds.
3
1
FY 2010 -11 Capital Revenue by Category
*Reduced due to no adopted $16 SSC increase.
FY 2010 -11 Capital Budget by Program
Program
Budgeted
Actual
Revenue Category
$ 7,437,000
$9,297,000
Collection System
2010.11 Revenues
2010 -11 Revenues
General Improvements
$1,856,000*
$ 9,134,000
Sewer Service Charge
$ 550,000
$1,802,000
Total
($4,556,000)
$27,962,000
Property Taxes
$6,873,000
$6,760,000
Facility Capacity/ Pumped
$6,744,000
$3,998,000
Zone Fees
Interest
$850,000
$298,000
City of Concord
$2,429,000
$3,216,000
All Other
$917,000
$357,000
Total
$19,669,000*
$16,431,000
($22,369,000)
*Reduced due to no adopted $16 SSC increase.
FY 2010 -11 Capital Budget by Program
Program
Budgeted Total
2010.11 Expenditures
Actual Total
2010.11 Expenditures
Treatment Plant
$ 7,437,000
$9,297,000
Collection System
$ 10,508,000
$8,801,000
General Improvements
$ 9,969,000
$ 9,134,000
Recycled Water
$ 550,000
$ 730,000
Total
$ 28,464,000
$27,962,000
2010 -11 Treatment Plant Program
Major Projects/Variances
Budgeted I Actual I Comments
Solids Handling
$30,000
$1,005,000
Project delayed into 2010.11.
Improvements
Diablo Renovations Ph 1
$2,000,000
$1,631,000
Standby Power Facility
$350,000
$2,307,000
Project delayed Into 2010.11.
Improvements
201041 Development Sewerage
$1,000,000
$538,000
Dry/Wet Weather
$2,200,000
$2,128,000
Good bid.
Improvements
Total
$10,508,000
$8,801,000
Piping Renovations,
$1,690,000
$1,558,000
Substitute contractor
Ph 5
performed well.
Other Projects
$2,127,000
$2,299,000
Total
$7,437,000
$9,297,000
2010 -11 Collection System Program
Major Projects/Variances
Budgeted
Actual
Comments
Diablo Renovations Ph 1
$2,000,000
$1,631,000
Good bids.
South Orinda Renovations Ph 5
$1,800,000
$684,000
Good bids /Project
delayed Into 2011 -12
201041 Development Sewerage
$1,000,000
$538,000
Reduced developer
activity.
Other Projects
$6,653,000
$6,700,000
Total
$10,508,000
$8,801,000
2010 -11 General Improvements Program
Major Projects/ Variances
2010 -11 Recycled Water Program
Major Projects /Variances
Budgeted
Actual
Comment
CSOD Facilities
$60,000
$200,000
Project delayed
Improvements
$6,080,000
$7,259,000
from 2009 -10 into
Recycled Water Planning
$510,000
$730,000
2010.11
HOB and 4737 Seismic
$1,325,000
$216,000
Projects delayed
Improvements
Into 2011 -12.
Equipment and Vehicles
$700,000
$358,000
Other Projects
$1,864,000
$1,301,000
Total
$9,969,000
$9,134,000
2010 -11 Recycled Water Program
Major Projects /Variances
Budgeted
Actual
Comment
Concord Naval Weapons
$60,000
$200,000
Originally budgeted for
Station REW Study
2011 -12.
Recycled Water Planning
$510,000
$730,000
and New Connections
Actual FY 2010 -11
Capital Program Activity
*Budget if $16 sewer service charge increase adopted.
** Beginning balance 7/1/10 $65.6 M including $30 M bonds.
Questions........
Budgeted 2010 -11
Actual 2010 -11
Total expenditures
$28.5 M
$28.0 M
Total revenue
$19.7 M
$16.4 M
($22.4 M *)
Reduction In SCF Balance
-$11.6 M
(- $6.1M *)
$56.8 M
Sewer Construction Fund
($59.5 M *)
$54.0 M
Balance 6/30/2011 **
*Budget if $16 sewer service charge increase adopted.
** Beginning balance 7/1/10 $65.6 M including $30 M bonds.
Questions........
2
Central Contra Costa Sanitary District
August 25, 2011
TO: CAPITAL PROJECTS COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER
ANN FARRELL, DIRECTOR OF ENGINEERING
CURT SWANSON, ENVIRONMENTAL SERVICES DIVISION MANAGER
FROM: JARRED MIYAMOTO- MILLS, PRINCIPAL ENGINEER AW *Z0\%
EARLENE MILLIER, ENGINEERING ASSISTANT III i
SUBJECT: CLOSEOUT OF CAPITAL IMPROVEMENT PROJECTS
Work has been completed on 20 capital improvement projects during the 2010 -11 fiscal
year. In prior years, the financial results of projects being closed out were reported to
the Board on an informational position paper. This memo replaces that position paper,
since no Board action is required to close out projects.
As a result of the closeout of these projects, $605,995 is being returned to the
Treatment Plant, Collection System and General Improvements Programs. No
Recycled Water projects are being closed out.
Below is a summary of the allocated budgets and expenditures for the closed projects
by program. Attachment 1 lists the allocated budgets and expenditures and
E
underun /(overrun) amounts for each project. Attachment 2 contains a brief summary of
the work completed under each project.
WFinance DB \CIB CIP —process_and_docs \CloseOut\2011 Closeout\Memo to Board re Closeouts.doc
Allocated Budget
Expenditures as
of June 30, 2011
Underrun = Amount
Returned to Program
Plant
$1,843,000
$1,759,237
$83,763
System
hprovements
$9,342,162
$8,825,837
$516,325
$1,872,700
$1,778,065
$94,635
Water
No Recycled Water projects are being closed out in FY 2010 -11.
$13,067,862
L $12,363,139
$694,723
WFinance DB \CIB CIP —process_and_docs \CloseOut\2011 Closeout\Memo to Board re Closeouts.doc
Attachment 1
Budget and Expenditure Summary
TRFATMENT PLANT PROGRAM CLOSING PROJECTS
DISTRICT
PROJECT NO.
PROJECT TITLE
ALLOCATED
BUDGET
EXPENDITURES
AS OF 6130111
UNDERRUN
(OVERRUN)
7237
Scrubber Water Mercury/Metals Removal
1,269,000
1,235,494
33,506
7257
Substation 82 Transformer Replacement
25,000
24,985
15
7267
Treatment Plant Seismic Evaluation
400,000
376,843
23,157
7280
Treatment Plant Culvert Abandonment
99,000
75,371
23,629
7293
M- 1Sidestream Flow Meter
50,000
46,544
3,456
Program Totals
$1,843,000
$1,759,237
$83,763
crn_LECTION SYSTEM PROGRAM CLOSING PROJECTS
DISTRICT
PROJECT NO.
PROJECT TITLE
ALLOCATED
BUDGET
EXPENDITURES
AS OF 6130111
UNDERRUN
(OVERRUN)
5932
Hall Drive Sewer Renovation - Phase 2B
1,611,470
1,511,858
99,612
5952
Martinez Sewer Renovation - Phase 3
1,971,527
1,836,483
135,044
5960
Sleepy Hollow Pumping Station Upgrades
820,000
812,154
7,846
5974
Walnut Creek Sewer Renovations - Phase 7
2,597,000
2,571,652
25,348
5996
Bates Avenue Pumping Station Abandonment
50,000
2,328
47,672
6000
Pumping Stations Emergency Equipment Storage
19,000
2,345
16,655
6162
Pumping Station Safety & Security Improvements
95,000
76,163
18,837
6412
Monteira AVAD
86,095
79,612
6,483
6439
Reliez Valley AVAD
326,315
323,390
2,925
6441
Quail AVAD
367,736
386,587
(18,851)
6442
Gordon /Millthwait AVAD
550,904
511,341
39,563
6450
Via Vaqueros AVAD
147,115
173,515
(26,400)
6483
2010 -11 Development Sewerage
700,000
538,409
161,591
Program Totals
$9,342,162
$8,825,837
$516,325
GENERAL IMPROVEMENTS PROGRAM CLOSING PROJECTS
DISTRICT
PROJECT NO.
PROJECT TITLE
ALLOCATED
BUDGET
EXPENDITURES
AS OF 6130111
UNDERRUN
(OVERRUN)
8216
Household Hazardous Waste Facility Improvements
1,426,000
1,420,093
5,907
8511
lVehicles & Equipment 2010 -11
4467001
357,9721
88,728
Program Totals
$1,872,700
1 $1,778,065
1 $94,635
Attachment 2
Project Descriptions
TREATMENT PLANT PROGRAM
Proiect # Proiect Title
DP 7237 Scrubber Water Mercury /Metals Removal
Mercury and other heavy metals in the influent accumulate in the biosolids generated by
the treatment process or pass through to the final effluent. The biosolids are processed
in the incinerators where the mercury and other heavy metals become bound in the fly -
ash and are removed from the flue gas in the wet scrubber water, which is recycled
back to the secondary process. Heavy metals also volatilize and pass through the wet
scrubber, and are emitted into the atmosphere. This project provided for a metals mass
balance and characterization as well as a pilot plant study to develop design criteria for
a potential future project.
DP 7257 Substation 82 Transformer Replacement
This project investigated and upgraded circuit breakers, conduit, protective relays, and
other electrical equipment as needed for continued operation with PG &E's new larger
transformer at Substation 82, which was replaced in January 2009. The construction of
this work was incorporated into the Standby Power Facility Improvements Project.
DP 7267 Treatment Plant Seismic Evaluation
Treatment plant facilities were studied for vulnerability to seismic events, and
recommended improvements were developed for design and construction under other
capital projects.
DP 7280 Treatment Plant Culvert Abandonment
Under the District's NPDES Permit, all treatment plant stormwater must be routed to the
treatment process and cannot be discharged off -site. This project re- routed to the
headworks drains that had previously drained off -site, and abandoned some drains. In
addition, the treatment plant was surveyed to identify any other offsite drainage
locations.
DP 7293 M -1 Sidestream Flow Meter
The District's NPDES Permit requires that plant - generated flows must be subtracted
from the total flow to determine the true influent flow. A flow meter located downstream
of the Filter Plant, Solids Conditioning Building, and Holding Basins allows the
calculation of the plant flow, but had been out of service for some time. This project
investigated flow meters, selected the replacement meter, and installed it.
COLLECTION SYSTEM PROGRAM
Proiect # Proiect Title
DP 5932 Hall Drive Sewer Renovation — Phase 213
This project replaced approximately 2,175 feet of 6 -inch sewer in backyard easements.
Horizontal directional drilling and pipe- bursting construction methods were used to
install the replacement gravity sewer lines in the front yards of properties and within the
public right of way. New easements were acquired and laterals were re- routed.
DP 5952 Martinez Sewer Renovation — Phase 3
The project work completed renovation and installation of 5,350 feet of sewer pipe,
including sewer pipe installation on Green Street by horizontal directional drilling, and by
using pipe- bursting and open -cut methods at other locations. The work involved
trenching, shoring, manhole installation, reconnection of laterals, and paving. In
addition to sewer construction, through a Joint Powers Agreement with the City of
Martinez, a new 18 -inch storm drain pipe in an easement between Brown Street and
Ulfinian Way and a pavement overlay on Brown Street and Main Street were also
completed.
DP 5960 Sleepy Hollow Pumping Station Upgrades
This project upgraded the mechanical and electrical equipment at the Sleepy Hollow
Pumping Station to prevent overflows, reduce maintenance, and increase operating
efficiency. As part of the project existing corroding conduits were replaced, electrical
cabinets relocated to a more accessible location to comply with safety standards. The
wet well was coated to preserve the concrete, and the emergency discharge bypass
connection was replaced. New dedicated electric and water services were connected to
the pumping station. The project also provided a new 125 kW standby generator for the
Concord Industrial Pumping Station, and design and construction work for abandoning
the Bates Avenue Pumping Station.
DP 5974 Walnut Creek Sewer Renovations — Phase 7
This project replaced /rehabilitated approximately 11,000 feet of 6 -inch through 15 -inch
sewer pipe at several different sites throughout the city of Walnut Creek, unincorporated
County areas, and other neighboring areas. These replacements /renovations were
completed by open -cut, guided bore, and pipe- bursting methods. Spot repairs were
also added to the project.
DP 5996 Bates Avenue Pumping Station Abandonment
The Bates Pumping Station was located in Concord and constructed in 1968. In the late
1980s, flow was diverted from the Bates Avenue Pumping Station to Concord Industrial
Pumping Station. Abandoning the Bates Avenue Pumping Station freed up operations
staff time and saved future capital expenditures. The electrical and mechanical
equipment was salvaged for future use. Design and construction work for this project
was included in the Sleepy Hollow Pumping Station Upgrades project because the
project was too small to bid separately.
COLLECTION SYSTEM PROGRAM (Continued)
Project # Project Title
DP 6000 Pumping Stations Emergency Equipment Storage
Covered storage for several pieces of emergency equipment was needed in order to
prolong the life of the equipment. This project evaluated what kind of covered storage
was needed. A new project will be opened as additional equipment storage needs are
identified.
DP 6162 Pumping Station Safety & Security Improvements
This project provided funding to install safety and security improvements in the District's
pumping stations. These improvements included miscellaneous upgrades at all
pumping stations.
DP 6412 Monteira AVAD
This project provided funding in 2008 for the Monteira AVAD, which will allow 6
properties to connect to a public sewer constructed on Monteira Lane in Martinez.
DP 6439 Reliez Valley AVAD
This project provided funding in 2008 -09 for the Reliez Valley Road AVAD, which will
allow 16 properties to connect to a public sewer constructed on Reliez Valley Road in
Martinez.
DP 6441 Quail AVAD
This project provided funding in 2008 -09 for the Quail Lane AVAD, which will allow 14
properties to connect to a public sewer constructed on Alhambra Valley Road and Quail
Lane in Martinez.
DP 6442 Gordon /Millthwait AVAD
This project provided funding in 2008 for the Gordon /Millthwait AVAD, which will allow
46 properties to connect to a public sewer constructed on Gordon Way, Millthwait Drive
and Millican Court in Martinez.
DP 6460 Via Vaqueros AVAD
This project provided funding in 2009 -10 for the Via Vaqueros AVAD, which will allow 11
properties to connect to a public sewer constructed on Via Vaqueros in Martinez.
DP 6483 2010 -11 Development Sewerage
This project provided for the appropriate capitalization of District force account labor and
other expenses for planning, design, and construction of developer - installed and
contributed main sewer facilities in 2010 -11. A similar project has been opened for
2011 -12.
GENERAL IMPROVEMENTS PROGRAM
Project # Project Title
DP 8216 Household Hazardous Waste Facility Improvements
This project seismically retrofitted the Household Hazardous Waste Collection Facility
(HHWCF) and increased the efficiency and utilization of the facility. The project also
included installing gas heaters and fans in the Vehicle Maintenance Shop, and
numerous safety and security related activities for various District assets.
DP 8511 Vehicles & Equipment 2010 -11
This project provided funding for safe and cost - effective vehicles and equipment for FY
2010 -11.
(a.
Central Contra Costa Sanitary District
August 26, 2011
TO: CAPITAL PROJECTS COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER
FROM: ANN E. FARRELL, DIRECTOR OF ENGINEERING
SUBJECT: BOARD /STAFF AUTHORITY LIMITS
INTRODUCTION
Central Contra Costa Sanitary District's (CCCSD) current authorization limits for
Department Director, General Manager and Board of Directors are defined in the
District's Capital Improvement Program and in the District's Purchasing Policies and
Procedures Manual. These limits define to what extent the General Manager and his
delegates can authorize construction contracts, authorize construction change orders,
authorize consultant contracts, etc. These limits have not been revised for many years.
At the suggestion of several members of the Board, staff has completed a limited survey
of other agencies to determine how our current staff authority limits compare to others.
SURVEY OF OTHER COMPARABLE DISTRICTS
A survey was conducted gathering information regarding the current authorization limits
of surrounding sanitation districts comparable in service size to CCCSD. Of the
surrounding districts, East Bay Municipal Utility District ( EBMUD), Union Sanitary
District (USD), Delta Diablo Sanitation District (DDSD), and Dublin San Ramon Services
District (DSRSD) were determined to be of comparable service size, and their
authorization limits along with CCCSD's are shown in the table attached.
As shown, three of the four surveyed districts allow General Managers a higher
authorization for consultant contracts. In addition, both EBMUD and USD allow General
Managers to award construction contracts of up to $100,000 compared to CCCSD's
limit of $15,000. The most consistent authorization amount for General Managers is
$100,000 as compared to the $50,000 utilized by CCCSD for most categories. Other
Districts have also delegated subcontractor substitutions on construction projects to
staff.
N:\ENVRSECWdminWarrell\2011 \Capital Improvement Program Authorization Limits Memo 8- 26- 11.doc Page 1 of 2
CONCLUSIONS
Overall, the authorization limit comparison shows that other districts allow the General
Manager more authorization than is currently allowed at CCCSD. If the Committee is
open to considering a higher limit, staff would suggest a General Manager limit of
$100,000 for consultant contracts and construction contracts with contracts over
$100,000 going to the Board for approval. In addition, staff recommends that
subcontractor substitutions be delegated to the General Manager. If the Board wants to
maintain some involvement in subcontractor substitutions, an approach such as
DSRSD's could be utilized where only those substitutions that are contested go to the
Board and the rest are handled at the staff level. Staff is available to develop any
additional information that the Committee would like to consider with regard to staff
authority limits.
AEF:sdh
N:\ENVRSEC\Admin\Farrell\2011 \Capital Improvement Program Authorization Limits Memo 8- 26- 11.doc Page 2 of 2
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Central Contra Costa Sanitary District
August 25, 2011
TO: CAPITAL PROJECTS COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER
ANN E. FARRELL, DIRECTOR OF ENGINEERING
ALEX E. ROZUL, PROVISIONAL CAPITAL PROJECTS DIVISION
MANAGER
FROM: BA T. THAN, SENIOR ENGINEER
SUBJECT: CAPITAL PROJECT EXPENDITURES VERSUS CONTRACTOR COSTS
A measure of the efficiency of the Capital Program is the dollar value of improvements
that are actually built as compared to the other soft costs. In the last five fiscal years
(FY 2006 -2007 to FY 2010 -2011) the capital expenditures for all programs of the capital
improvements program are $158,539,000. The total payment to contractors (including
change orders) is $107,105,000 or 68 %. The total payment to contractors can be
equated to improvements such as pipes in the ground, buildings, process additions,
etc... The remaining expenditures of $51,434,000 were for planning, design, studies
including pilot plants, easement acquisition and construction management, and
inspection of the capital improvements. A total program percentage of 68% facilities in
the ground is very favorable after the addition of all of our right of way, planning, pilot
study, and other soft costs.
The detailed breakdown for the Treatment Plant, Collection System, and Recycled
Water /General Improvements programs are shown in the following table:
Last Five Years
Total
Total Value of
Percentage of
Capital Program
Expenditures
Improvements
Improvements/ Total
(FY 2006 -07 to FY
(Contractors
Expenditure
2010 -11 )
Payments)
Treatment Plant
$34,438,000
$22,104,000
64%
Collection System
$114,774,000
$79,895,00
70%
Recycle
$9,327,000
$5,106,000
55%
Water /General
Improvements
The expenditures were based on the closed -out projects in the last five fiscal years.
Note that the project cost of a new CSOD facility is not included in these expenditures
nor are several large treatment plant construction projects that are currently nearing
completion. These larger projects may improve our percentages as they are typically
more cost effective. We will revisit these metrics next year.
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Central Contra Costa Sanitary District
August 26, 2011
TO: CAPITAL PROJECTS COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER
FROM: ANN E. FARRELL, DIRECTOR OF ENGINEERING
DON BERGER, ASSOCIATE ENGINEER 4
SUBJECT: INCORPORATION OF UNBUDGETED RECYCLED WATER PROJECTS
INTO FY 2011 -12 AND FY 2012 -13 CAPITAL IMPROVEMENT
BUDGETS
BACKGROUND
District staff has been pursuing outside funding assistance for the Refinery Recycled
Water Project and Concord Landscape Project and have recently been successful at
securing several grants. The grants require various matching contributions from the
District, some of which are not currently budgeted. The following is a brief overview of
each proposed project, the grant funding awarded, and the District's obligations if we
choose to take the grants. This information was discussed at the Board Recycled
Water Committee meeting on August 18, 2011, and the Committee recommended
further discussion of the financial impacts of these projects with the Capital Projects
Committee.
Refinery Project
The Refinery Project would provide up to 20 mgd (22,500 acre feet per year) of recycled
water to the Shell and Tesoro Refineries for use in cooling towers and as boiler feed
water at each refinery. The recycled water would replace Delta water currently used in
the refineries. New recycled water treatment facilities, and possibly new conveyance
facilities, would be required at a total estimated cost of $100 million. No funds are
currently budgeted to implement the project, however, the District has been seeking
project partners and pursing various grant funding opportunities including the Federal
Water Resources Development Act (WRDA) and the U.S. Bureau of Reclamation
(USBR) Title XVI Program. The District was recently awarded a Title XVI planning grant
of $180,000 from the USBR to prepare a Feasibility Study and associated
environmental documentation for the project. The total estimated cost for this work is
$360,000 and the District would be required to contribute the other 50% of the costs, or
$180,000. It is expected that the work would be completed over a two year period,
during FY 2011/12 and FY 2012/13. While no construction funds are currently
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budgeted in the Capital Improvement Budget (CIB), some funding has been included for
planning studies and there are sufficient funds available to pay for our share of the
costs. Since the Contra Costa Water District (CCWD) had originally suggested that we
prepare a feasibility study, we have asked CCWD to split the local matching contribution
with us so that each agency would pay $90,000. CCWD indicated they will provide a
decision on their willingness to cost share by September.
While the District has not yet been successful at identifying financial partners for the
implementation phase of the Refinery Project, forming a partnership with USBR
(CCWD's wholesale water supplier) to conduct a feasibility study and environmental
review would be a very positive first step in building legitimacy for the project and would
provide a mechanism for helping to address the institutional and financial concerns
raised by CCWD.
Concord Landscape Proiect
This project would extend our existing recycled water distribution system from the
Buchanan Fields Golf Course to the Willows area of Concord for landscape irrigation at
businesses and landscape medians. The project would add 34 new landscape irrigation
customers and would supply about 62 Mgal /yr (190 acre -feet per year) of recycled
water. The total estimated project cost is $4 million. The project was originally
designed and bid in 2007 with the A -Line Relief Interceptor Project, but the recycled
water portion was put on hold when additional unanticipated requirements for backflow
prevention devices from CCWD increased the project costs. Since that time, Central
Contra Costa Sanitary District (CCCSD) has been working with the Bay Area Recycled
Water Coalition to pursue Title XVI grant funding assistance while also pursing State
Proposition 84 grant funding on our own.
The District was recently awarded a Title XVI grant of $97,000 to reimburse the District
for 50% of prior expenses incurred preparing the feasibility study and environmental
documentation for the project. Since the District's required 50% match has already
been expended, we have fulfilled our financial obligation and can submit for
reimbursement after we execute an agreement with USBR to receive the grant.
The District was also recently notified that we have been awarded a State Proposition
84 Implementation grant of $1,030,000 to construct the project. To receive the
Proposition 84 grant, the District would be required to fund the remaining $3 million in
estimated project costs. The Prop 84 grant is a "match first" grant where the District
must pay the first $1,030,000 in costs in order to be eligible for reimbursement of the
next $1,030,000 in expenses as they occur. It is anticipated that the project would need
to be completed by no later than 2015 in order to fulfill the grant requirements. If the
District decides to take the grant and proceed with construction, a recommended
schedule would be to bid the project in spring 2012 and begin construction next summer
due to the current, very favorable bidding climate. The project would take about a year
to complete.
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The estimated payback period for the Concord Landscape Project is estimated to be
about 18 years if the Proposition 84 grant is used to reduce our costs. This is still
slightly more than the District's targeted 15 year payback period for recycled water
projects. However, if the project is bid in the near future, the costs and payback period
may be reduced due to the favorable bidding climate. In addition, CCWD is considering
providing financial assistance with the backflow preventer installation, which would
further reduce costs and improve the payback period. Lastly, the possibility still exists
that we could receive additional Title XVI funding in the future to further reduce costs.
PLANNED EXPENDITURES FY 2011 -12 CAPITAL BUDGET / 2011 CAPITAL PLAN
It is anticipated that approximately $3 million of District funds will be needed to fund the
construction of the Concord Landscape Recycling Project and the development of a
feasibility study for the Martinez Refinery Recycled Water Project. These funds are
currently unbudgeted. Deferral of projects in an equivalent amount is suggested to
minimize impacts on cash flow. The Board and staff have committed to a two year rate
increase which has already been noticed to the public and implemented. In order to
keep within the capital budget established at the time the rate increase proposal was
developed, $3 million in budgeted projects would need to be deferred. In reviewing the
budgeted projects for FY 2011 -12 and the planned projects for 2012 -13, there are
several non - critical projects that could be moved a year or two into the future to make
available $3 million for these newly identified projects. Candidate projects for deferral
and their total project budgets include:
Incinerator Wet and Dry Scrubber Replacement $3,910,000
Lower Orinda P.S. Force Main Improvements $1,621,000
Pleasant Hill /Grayson Creek Capacity Improvements $3,100,000
CONCLUSION
From a Capital Projects budgeting and planning perspective, the addition of the
construction of the Concord Landscape Recycling Project as well as the preparation of
the Feasibility Study for the Martinez Refinery Recycled Water Project to the capital
budget can be accommodated by deferring other non - critical projects. If the Board
chooses to accept the grant funds that have come available and move forward with
these projects, staff will modify next year's Capital Improvement Budget and Plan
accordingly. Should additional funds be necessary before the adoption of the FY 2012-
13 Capital Improvement Budget (expected in June 2012), staff will bring a position
paper to the full Board to authorize the needed funds.
AEF /DB:sdh
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