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HomeMy WebLinkAboutCAPITAL PROJECTS ACTION SUMMARY 04-02-13Central Contra Costa Sanitary District 'th and the environment . Imhoff Place, 94553-4392 SPECIAL MEETING OF THE BOARD OF DIRECTORS: CENTRAL CONTRA COSTA JAMES A.NEJEDLY SANITARY DISTRICT President CAPITAL PROJECTS COMMITTEE DAVID R. WILLIAMS President Pro Tent PAUL H. CAUSEY ACTION SUMMARY MICHAEL R. MCGILL TAD J. PILECKI PHONE: (925) 228 -9500 Chair Pilecki FAX: (925) 676 -7211 Member Causey www.cetitralsan.org Tuesday, April 2, 2013 3:00 p.m. Multi- Purpose Room 5019 Imhoff Place Martinez, California PRESENT: Chair Tad Pilecki, Member Paul Causey, Provisional General Manager Curt Swanson; Finance Manager Thea Vassallo, Capital Projects Division Manager Andrew Antkowiak, Senior Engineer Sasha Mestetsky, Senior Engineer Thomas Brightbill, Plant Maintenance Superintendent David Robbins, Associate Engineer Nathaniel Morales, Information Technology Administrator Roy Li, Engineering Assistant III Earlene Millier 1. Call Meeting to Order Chair Pilecki called the meeting to order at 3:00 p.m. 2. Public Comments None. 3. Review information to be presented at upcoming Capital Projects Board Workshop scheduled for April 11, 2013, including the following: a. Receive presentation on the effects that various alternative scenarios for funding the District's unfunded actuarial accrued liability (UAAL) would have on the Draft 2013 Ten -Year Capital Improvement Plan (CIP) presented at the January 24, 2013 Financial Planning and Policy Board Workshop Finance Manager Thea Vassallo presented information on alternative financial scenarios which would accelerate payment of the UAAL unfunded liability (attached). Capital Projects Committee Action Summary April 2, 2013 Page 2 Discussed how the alternative scenarios, which would reduce capital spending to pay down the unfunded liability, would affect the capital program. Discussed how projects could be prioritized and how much money could be saved by delaying non - critical projects. Discussed the ten -year plan financial models, Contra Costa County Employees Retirement Association (CCCERA) requirements for timing of payments, and the effects of investment gains and losses on the District's financial planning. COMMITTEE ACTION: The Committee requested that staff (1) verify how the District's financial planning model accounts for advance paydowns to CCCERA and (2) provide information about CCCERA's restrictions on the timing of payments. The Committee also suggested adding a line to the model for the UAAL, and recommended that the scenarios presented be included in discussions at the May 21, 2013 Board Priorities Workshop and at the June 20, 2013 Board meeting. b. Overview of the Fiscal Year 2013 -14 Draft Capital Improvement Budget (CIB) and Draft 2013 Ten -Year CIP (See binder provided with this agenda) Capital Projects Division Manager Andrew Antkowiak presented an overview of the CIB /CIP for FY 2013 -14 (attached). The Committee received the overview and discussed expenditures, allocations, and contingency funds. Committee Members asked if there were excess funds in Funds Available that could be used to pay down the UAAL. Member Causey requested an example of the year -end project closeout report and asked staff to find out where the increased value of the Kiewit property due to filling was capitalized. Committee Members provided their comments to staff on the Draft FY2013 -14 CIB /CIP. COMMITTEE ACTION: Recommended that staff clarify the language in the CIB related to program contingency and project contingency (overruns); that projects with associated revenue be clearly described; that more work be done on an asset management plan and that the FY 2014 -15 CIB reflect the increased level of effort; that TV inspection be included in the O &M budget rather than the capital budget in the future; that explanation of project changes that affect expenditures be included in contract award position papers; that an asset management plan be included in the Pumping Station Master Capital Projects Committee Action Summary April 2, 2013 Page 3 Plan project; and that the CIB /CIP preparation process be further streamlined, if possible. C. Discuss Information Technology (IT) Development Plan (See IT Plan section of above - referenced binder) Information Technology Administrator Roy Li presented the IT Plan for FY 2013 -14 (attached). COMMITTEE ACTION: Recommended that staff contact the City of Phoenix for information regarding its use of ToughBooks for field personnel. Recommended that staff put portions of the IT Plan on hold, including $90,000 for MainSaver, $250,000 for records retention, $35,000 for Communication Services, and $50,000 for miscellaneous, and use the money saved to develop a comprehensive data management master plan. d. Discuss Vehicle and Equipment Budget for Fiscal Year 2013 -14 (See Equipment Budget section of above - referenced binder) Provisional General Manager Curt Swanson reviewed the Vehicle and Equipment Budget for Fiscal Year 2013 -14. COMMITTEE ACTION: Requested that staff provide information about the surface grinder included in the plan. 4. Review following items with respect to Capital Projects: a. Status of the District's Asset Management Program Curt Swanson reviewed recent organizational changes. Senior Engineer Dana Lawson has been moved to Environmental Services and will work on the Asset Management Plan, assisted by other staff. The plan will be expanded to include Collection System and General Improvements projects. COMMITTEE ACTION: Received status report. b. Current District staff authority limits COMMITTEE ACTION: Recommended the matter be discussed at a future Capital Projects Committee meeting with input from the upcoming Board Priorities Workshop. Capital Projects Committee Action Summary April 2, 2013 Page 4 C. Consultant selection procedures COMMITTEE ACTION: Reviewed the information provided. 5. Announcements None. 6. Suggestions for future agenda items April 11, 2013 Board Capital Projects Workshop: Whether to pursue reductions in the FY 2012 -13, 2013 -14, and 2014 -15 capital program spending and use the savings to pay down the UAAL. May 21, 2013 Board Priorities Workshop: Request that staff prepare an assessment of the capital project priorities to determine whether projects can be delayed, and if so, how much money could be saved. Scenarios calling for accelerated payment of UAAL starting in FY 2013 -14 and 2014 -15 ($0/$0/$10 to $5/$5/$5). How to provide for the large equipment needs of the District over time in the context of an asset management plan. Current District staff authority limits for capital projects. Next Capital Projects Committee meeting (before June 20, 2013): The role of the Capital Projects Committee. Current District staff authority limits for capital projects. June 20, 2013 Board Meeting: Scenarios calling for accelerated payment of UAAL starting in FY 2013 -14 and 2014 -15 ($0/$0/$10 to $5/$5/$5). 7. Adjournment — at 7:15 p.m. CENTRAL CONTRA COSTA SANITARY DISTRICT Accelerated payment of UAAL starting in 13/14 and 14/15 (original start date 15/16) $0/$0/$10M to $5M /$5M /$5M SSC for O &M SSC for SC Total Rate Increase FY 13/14 Original Revised(a)_ 3/29 10 Yr Plan 10 Yr Plan Diff 13/14 13/14 13/14 ( @Budget) (Uses Projected) 335 365 30 70 40 -30 34 $30 * 170,000 = $5M UAAL 3.a. FY 14/15 $0 UAAL $5M UAAL Original Revised@ 3/29 10 Yr Plan 10 Yr Plan Diff 14/15 14/15 14/15 flated off Budget) (Uses Projected) 372 397 25 67 42 -25 34 1 34 12/13 Orig 10yr Plan 12/13 Funds Avail > Funds Req 9.4 Adjustments Unspent CIB 12/13 3.0 Actual Projected diff 12/13 Pass 2 (1.6) Partially due to 0% salary increases included in original budget All other (0.5) Updated 12/13 Funds Avail > Funds Req 10.3 (prior to $5M paydown) Scenario 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 2020 -21 2021 -22 2021 -22 10 -Year ID Description Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Ending Ending Balance Increase Increase Increase Increase Increase Increase Increase Increase Increase Increase Total 1 Baseline Scenario - 2012 $ 38 $ 38 $ 38 $ 36 $ 36 $ 36 $ 36 $ 36 $ 36 N/A $ 701 $ 20,400,615 2 Baseline Scenario - 2013 $ 34 $ 34 $ 34 $ 34 $ 34 $ 35 $ 35 $ 34 $ - $ - $ 645 $ 19,104,524 Baseline Scenario - 2013 3* $ 33 $ 33 $ 33 $ 33 $ 32 $ 32 $ 32 $ 32 $ 9 $ $ 640 $ 20,296,128 Revised Post - Workshop Scen. #3 + Start UAAL 4 Paydown Immediately $ 34 $ 34 $ 34 $ 33 $ 32 $ 32 $ 31 $ 23 $ - $ - $ 624 $ 20,417,386 $5M/3 r, $10M/6 r *Changes to Baseline Scenario Since January 24th Presentation Lowered ARC from 8.300M to 8.103M in benefit tab Updated Capital Expenditures, including $3M lower in FY 2012 -13 Projections Updated Retirement rates based on 2012 estimated returns AND the lowered assumed earnings rate Lowered Medical premium increases in FY13 -14 based on actual rates Updated 10 -year Capital expenditure projection (as of 3/17/13) FY 2012 -13 now uses actual projections rather than budgeted amounts FY 2013 -14 now uses actual projections rather than inflated FY 2012 -13 budgeted amounts Used Bartel 2012 valuation in years 4 -10 of medical Scenario #4 changes the UAAL paydown years 1 -3 from $0/$0/$10M to $5/$5/$5M 10 yr Plan Assumptions Scenarios Summary Board Table 2013 -14 Rev2 CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 4 - 2013 $5/$5/$5M UAAL PAYDOWN SCENARIO Fiscal Years 2013 -14 through 2022 -2023 3/28/2013 2:21 PM N:\NCCOUNTING\GMTEMPI \10 -Year Plan Projections\2013 -2014 Projections \Post - Workshop \Pocket scenarios \FY2013 -14 Scenario 4 - 3 -26 -13 Summary for Curr yr Report A F G H I J K L M N O P Planning Year Projected »» 1 2012 -2013 2013 -2014 2 2014 -2015 3 2015 -2016 4 2016 -2017 5 2017 -2018 6 2018 -2019 7 2019 -2020 8 2020 -2021 9 2021 -2022 1 10 2022 -2023 2 3 a 1 5 Service Data Assumptions (End of F.Y.) 165,291 Adjustment to total RUE due to lower commercial accounts - New Connections (RUE) for the labeled F.Y.. 800 Growth Per Year 0.49% SEWER SERVICE CHARGE DATA AND CALCULATIONS Sewer Service Charge Rate - Debt Service Sewer Service Charge Rate - O &M 344 Sewer Service Charge Rate - Capital 1 27 Total SSC Rate 371 Increase to Rate - $ 30 Increase to Rate - % 8.80% Total SSC Revenue 61,174,720 Interest Revenue Rate Assumption 0.40% Property Tax: Growth %Assumption 0.00% Growth $ 510,831 Tax Take or Repayment - 166,091 800 0.48% 365 40 405 34 9.16% 67,105,028 0.50% 0.00% 1,070,000 1,070,000 166,941 850 0.51% 397 42 439 34 8.40% 73,100,712 0.75% 0.00% (1,070,000) - 167,841 1 900 0.54% 405 68 473 34 7.74% 79,176,145 1.00% 1.00% 125,580 - 168,791 950 0.57% 441 65 506 33 6.98% 85,168,112 I 1.25% 1.00% 126,836 - 169,791 1,000 0.59% 437 101 538 32 6.32% 91,078,788 1.50% 1.50% 192,156 - 170,841 0.62% 451 119 570 32 5.95% 1 97,080,364 2.00% 2.00% 260,051 - 171,941 1,100 0.64% 455 146 601 31 5.44% 103,006,248 ° 2.50% 2.50% 331,566 _ 173,091 ' 174,291 _ 1,150 1,200 0.67% 0.69% 456 471 168 153 624 624 23 - 3.83% 0.00% 107,650,251 108,383,451 ° ° 3.00% 3.50% 3.00% 3.00% 407,826 420,060 _ _ 175,541 1,250 0.72% 420 204 624 - 0.00% 109,147,851 ° 4.00% 3.00% 432,662 _ 6 7 8 9 10 ii 1z 13 14 15 16 19 20 21 22 23 24 25 2s 27 Property Tax - Total Property Tax Impact on RUE Property P Connection Fee - Gravity Zone Percent Increase from PY Conn Fee - Pumped Zone 12,558,000 � 75.97 I �s 5,797 6.08% 7,422 13,628,000 82.05 - 5,987 3.28% 7,665 12,558,000 12,683,580 12,810,416- 13,002,572 13,262,623 13,594,189 � 14,002,015 14,422,075 14,854,737 82-75 i 84.62 7,404 7,562 2.25% 2.14% 2a 75.22 75..57 75.89 � 76,58 ' 77 63 79.06 80.89 _ .:.r.. :..:.... ..... :. < .. w 30 6,177 6,364 6,548 6,727 61903 7,074 7,241 31 3.16% 3.04% 2.89% 2.74% 2.61% 2.48% 2.36% 32 7,908 8,148 8,383 8,613 8,838 9,057 9,271 9,47.9 9,682 33 Percent Increase from PY Percentage of Pumped Zone to Total Connections Retiree OPEB Annual Contributions - 4.96% 56.25% _ 8,300,000 3.28% 56.25% 8,103,000 3.16% 52.94% 8,103,000 3.04% 51.11% r 8,103,000 2.89% 49.47% 8,103,000 2.74% 48.00% 8,103,000 2.61% 32.86% 8,103,000 2.48% 9.09% 8,103,000 2.36% 8.70% 2.25% 8.33% 8,103,000 2.14% 8.00% 8,103,000 34 35 36 37 Portion Allocated to PARS Trust 4,160,394 3,965,800 1 3,746,700 3,381,812 3,152,857 2,937,643 2,761,572 2,600,468 _8,103,000 2,527,612 2,369,557 2,359,040 38 Estimated PARS Trust Balance (39,o/year interest) 27,076,018 31,973,072 36,791,365 41,378,373 45,867,166 50,268,954 54,621,442 58,938,568 63,310,165 67,650,114 72,109,429 40 Salary Inflation (Impacted by Retirement Assumptions below) 4.6% 10.0% 1.7% 6.1% 3.7% 3.2% 3.2% 3.4% 3.2% 3.4% 3.4% 41 No. of New Retirements (net of deaths) 6 (5) 6 4 2 2 2 (2) 3 (4) (3) 42 Total 0 &M Benefit Increase Per Year ( %) 13.78% 31.24% 3.79% 2.44% 13.25% - 1.15% 0.31%1 0.49% 0.21W 0.29% - 21.98% 43 Be in additional 10 million ear to CCCERA UAAL 15 million in 2021 -22 44 Total 0 &M Expense Change from prior year (%) 7.39%1 14.31% 3.53% 3.509/. 8.63%1 0.80 %' 4.60 %' 1.74 %1 2.42% 1.74% -8.00% 46 Capital Project Inflation % 1.00 %1 1.50% 2.00% 3.00% 3.00% 3.00% 3.00 %, 3.00% 3.00% 3.00% 3.00% 48 1 Debt Coverage Ratio 3.91 3.32 1 3.75 13.79 7.05 8.10 10.10 13.16 12.07 12.87 13.58 49 Debt as a Percent of Revenue 6% 5 %' 5% 2% 3% 3 % 2 %I 2% 2% 2 %' 2% 3/28/2013 2:21 PM N:\NCCOUNTING\GMTEMPI \10 -Year Plan Projections\2013 -2014 Projections \Post - Workshop \Pocket scenarios \FY2013 -14 Scenario 4 - 3 -26 -13 Summary for Curr yr Report CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 4 - 2013 $5/$5/$5M UAAL PAYDOWN SCENARIO Fiscal Years 2013 -14 through 2022 -2023 551Ending Fund Balance '' 1 APtRSE 1`11111:11D A F G H I J K L M N O P 51 52 DEBT SERVICE FUND Projected »» 2012 -2013 1 1 2013 -2014 2 2014 -2015 3 2015 -2016 4 2016 -2017 5 2017 -2018 6 2018 -2019 7 2019 -2020 8 2020 -2021 9 2021 -2022 10 2022 -2023 53 TOTAL REVENUE: 5,567,376 5,552,435 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 54 TOTAL EXPENSE: 5,567,376 5,552,435 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 551Ending Fund Balance '' 1 APtRSE 1`11111:11D Projected »» 1 2 3 2012 -2013 2013 -2014 2014 -2015 2015 -2016 TOTAL REVENUE: 71,860,920 76,083,571 1 82,439,420 84,845,297 TOTAL EXPENSE: 69,108,941 78,995,554 81,783,263 84,642,643 REVENUE MINUS EXPENSE: 2,751,979 (2,911,983) 656,157 202,654 Ending Fund Balance 11,451,979 8,539,996 9,196,153 9,398,807 Prudent Reserve 11.01% 14.00% 10.09% 10.00% SEWER CONSTRUCTION FUND 2012 -2013 1 2013 -2014 2014 -2015 ki 3 2015 -2016 TOTAL REVENUE: 21,625,107 25,243,001 24,393,468 32,479,129 TOTAL CAPITAL EXPENDITURES: 29,324,510 29,580,000 26,480,2201 26,414,185 REVENUE MINUS CAPITAL EXPENDITURES: (7,699,403) (4,336,999), (2,086,752) 6,064,944 BOND PROCEEDS: - - - - 66,114,110 36,324,5371 35,405,797 38,587,214 59,575,860 Ending Fund Balance 38,600,597 34,263,598 32,176,845 38,241,789 TOTAL FUND BALANCES 2012 -2013 2013 -2014 2014 -2015 3 2015 -2016 TOTAL FUNDS AVAILABLE 50,052,575 42,803,594 41,372,999 47,640,597 FUNDS REQUIRED 100% of Debt Service 5,552,435 5,546,218 2,077,785 3,782,051 32% of Next Year's O &M Expense 25,278,577 26,170,644 27,085,646 29,423,226 30% of Next Year's Capital Expenditures - - - 8,874,000 _ 7,944,066 7,924,256 10,897,361 TOTAL FUNDS REQUIRED 39,705,012 39,660,928 37,087,686 44,102,639 Funds Available Amount Above /(Below) Funds Required 10,347,563 3,142,665 4,285,312 3,537,958 4 5 6 i 7 8 9 10 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 2022 -2023 92,558,777 92,716,686 92,681,100 97,025,345 96,947,736 98,844,903 98,633 766 100,180,142 101,020,007 103,977,499 102,778,003 94,853,834 94,559,498 91,947,583 611,194 35,586 77,609 211,137 (839,866) 1,199,496 294,336 10,334,334 10.02% 9,494,468 10.06% 10,693,96_4 10.04% 10,988,300 10.10% 10,010,001 10,045,587 10,123,197 10.14% _ al- 4 10.33% 5 10.18% 6 7 8 9 10 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 1 2021 -2022 2022 -2023 33,579,688 39,588,314 44,673,486 56,886,409 60,852,239 60,970,215 66,114,110 36,324,5371 35,405,797 38,587,214 59,575,860 57,253,828 61,868,018 50,176,332 (2,744,849) 4,182,517 6,086,272 (2,689,451) 3,598,411 (897,803) 15,937,777 35,496,941 39,679,457 45,765,729 43,076,278 46,674,689 45,776,886 61,714,664 4 2016 -2017 i 5 2017 -2018 6 2018 -2019 7 i 2019 -2020 8 2020 -2021 9 2021 -2022 10 2022 -2023 45,506,942 49,725,045 55,888,926 53,410,612 56,169,158 56,470,850 72,702,964 3,607,578 32,326,402 17,176,149 3,597,111 i 3,593,500 3,583,720 32,888,9611 33,875,630 34,891,899 18,560,405 13,809,959 13,809,959 3,809,926 3,603,238 3,600,701 29,657,952 31,023,2751 31,562,805 10,621,739 11,576,164 17,872,758 44,089,617 46,202,677 53,036,264 53,110,129 55,046,477 51,279,089 52,285,578 11417,325 3,522,367 2,852,661 300,483 1,122,680 5,191,761 20,417,386 3/28/2013 2:21 PM N:\ACC0UNTING \GMTEMPI \10 -Year Plan Projections\2013 -2014 Projections \Post - Workshop \Pocket scenarios \FY2013 -14 Scenario 4 - 3 -26 -13 Summary for Curr yr Report $100,000,000 i $90,000,000 i $80,000,000 I $70,000,000 d- Central Contra Costa Sanitary District Funds Available Compared to Funds Required by Year Scenario 4 - 2013 $5/$5/$5m UAAL Paydown Scenario Increased Funds Available for large projects in the next five years; new solids treatment (digesters or new furnaces). Alternatively, funds could be used to paydown unfunded liabilities. $60,000,000 -' -- $50,000,000 - � - - -- — -- �7- =�----- - - -� -/ $40,000,000 - $30,000,000 1 - -- - - $20,000,000 $10,000,000 $0 2009 -2010 2010 -2011 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 1 2019 -2020 2020 -2021 2021 -2022 2022 -2023 TOTAL FUNDS AVAILABLE _ 73,441,883 61,999,931 $54,999,999 50,052,575 42,803,594 41,372,999 47,640,597 45,506,942 49,725,045 55,888,926 53,410,612 56,169,158 56,470,850 72,702,964 -- —�- aTOTAL FUNDS REQUIRED 32,660,271 33,560,131 $6,479,590 39,705,012 39,660,928 37,087,686 44,102,639 1 44,089,617 46,202,677 53,036,264 53,110,129 55,046,477 51,279,089 52,285,578 Fiscal Year 3/28/2013 2:20 PM N:\A000UNTING \GMTEMPI \10 -Year Plan Projections\2013 -2014 Projections \Post - Workshop \Pocket scenarios \FY2013 -14 Scenario 4 - 3 -26 -13 Summary for Curr yr Report Chart 9 CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 2 - 2013 BASELINE SCENARIO Fiscal Years 2013 -14 through 2022 -2023 3/28/2013 2:07 PM NAACCOUNTINMGMTEMPi\10 -Year Plan Projections\2013 -2014 Projections \Post - Workshop\z- FY2013 -14 Scenario 2 Baseline- Pre - Workshop Summary for Curr yr Report A F G H I J K L M N O P 1 Planning Year Projected »» 2012 -2013 1 1 2013 -2014 2 2014 -2015 3 2015 -2016 4 2016 -2017 5 2017 -2018 6 2018 -2019 7 2019 -2020 8 2020 -2021 9 2021 -2022 10 2022 -2023 2 3 4 1 5 Service Data Assumptions (End of F.Y.) 165,291 166,091 166,941 167,841 168,791 169,791 170,841 171,941 173,091 174,291 175,541 6 Adjustment to total RUE due to lower commercial accounts New Connections (RUE) for the labeled F.Y.. - 800 - 800 - 8_50_ - - 900 - - - _ _ _ _ 7 950 1,000 1,050 1,100 1,150 1,200 1,250 a ° Growth Per Year 0.49/0 SEWER SERVICE CHARGE DATA AND CALCULATIONS 0.48% 0.51% 0.54% 0.57% 0.59% 0.62% 0.64% 0.67% 0.69% 0.72% s 10 11 Sewer Service Charge Rate - Debt Service Sewer Service Charge Rate - 0 &M Sewer Service Charge Rate - Capital Total SSC Rate Increase to Rate - $ Increase to_ Rate -% _ Total SSC Revenue Interest Revenue Rate Assumption Property Tax: Growth % Assumption Growth $ Tax Take or Repayment Property Tax - Total Property Tax Impact on RUE Connection Fee - Gravity Zone Percent Increase from PY Conn Fee - Pumped Zone 344 335 372 433 27 70 67 40 371 405 439 473 30 34 34 34 8.80% 9.16% 8.40% 7.74% 61,174,720 67,105,028 73,100,712 79,176 145 0.40% 0.50% 0.75% 1.00% 0.00% 0.00% 0.00% 1.00% 510,831 1,070,000 (1,070,000) 125,580 - 1,070,000 - _ 12,558,000 13,628,000 12,558,000 12,683,580 75.97 82.05 75.22 75.57 51987 6 177 6 364 -_ -- _ _ _ _ - -- 0 0 0 6.08% 3.28/0 � 3.16/0 3.04/o j 7,422 7,665 7,908 8,148 443 444 460 64 97 116 507 541 576 34 34 35 7.19% 6.71% 6.47% 85,336,429 91 586,662 98,102,262 1.25% 1.50% ° 2.00 /° 1.00% 1.50% 2.00% 126,836 192,156 - 260,051 _ _ - 12,810,416 13,002,572 13,262,623 75.89 1 76.58 77.63 6 548 6 727 _ � _ 6,903 0-1 o 2.89/0 2.74/0 2.61% 8,383 8,613 8,838 466 4 46 508 145T 181 137 611 645 645 35 34 - 6.08% 5.56% 0.00% 104,720,162 111,273,096 112,030,971 1 ° ° 2.50 /° 3.00 /° 3.50 /° 2.50% 3.00% 3.00% 331,566 407,826 420,060 _ _ 13,594,189 14,002,015 14,422,075 79.06 80.89 82.75 7,074 � 7,241 1 7,404_ _ 2.48% 2.36% 2.25% 9,057 9,271 9,479 437 208 645 - 0.00% 112,821,096 ° 4.00 /° 3.00% 432,662 14,854,737 84.62 7,562 2.14% 9,682 12 13 114 15 16 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Percent Increase from PY Percentage of Pumped Zone to Total Connections Retiree OPEB Annual Contributions 4.96% 56.25% 8,300,000 3.28% 56.25% 8,300,000 3.16% 52.94% 8,300,000 - 3.04% 51.11% �- 8,300,000 2.89% 49.47% 8,300,000 2.74% 48.00% 8,300,000 -- 2.61% 32.86% 8,300,000 2.48% 9.09% 8,300,000 2.36% 8.70% 8,300,000 2.25% ' 8.33% 8,500,000 2.14% 8.00% 8,618,966 34 35 36 37 Portion Allocated to PARS Trust 4,015,337 3,674,310 3,213,072 2,757,154 2,290,504 1,836,685 1,372,644_ 983,955 471,299 323,630 38 Estimated PARS Trust Balance (3% /year interest) - -----4,160,394 27,076,018 j 32,024,096 36,769,358 41,181,903 45,257,229 48,974,166 52,335,177 55,319,055 57,992,100 60,217,302 62,357,159 40 Salary Inflation (Impacted by Retirement Assumptions below) - 5.6 % 4.4% 6.1% 6.1 %' 3.7% 3.2% 3.2% 3.4% 3.2% 3.4% 3.4% 41 No. of New Retirements (net or deaths) 6 (5) 6 4 2 - 2 2 (2) 3 (4) (3) 42 Total O &M Benefit Increase Per Year ( %) 17.63% 7.76 %' 6.75 %, 32.25% 0.33% 0.09% 1.17 %, 1.01% 0.77% 11.08% - 26.38% 43 110EOgin _ additional 10 million ear to CCCERA UAAL 15 million in 2021 -22 44 Total O &M Expense Change from prior year ( %) 9.12% 4.81% 6.37% 16.46 %' 2.47% 1.44% 4.98 %' 2.00% 2.68% 6.55% - 10.63% 46 Capital Project Inflation % 1.00% 1.50% 2.00% 3.00% 3.00 %' 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 48 Debt Coverage Ratio 3.98 4.13 4.53 1 11.49 6.97 7.97 10.01' 13.20 12.58 12.19 14.27 49 Debt as a Percent of Revenue 6% 5 %I 5% 2 %, 3 %' 3 %, 2% 2% 2% 2% 2% 3/28/2013 2:07 PM NAACCOUNTINMGMTEMPi\10 -Year Plan Projections\2013 -2014 Projections \Post - Workshop\z- FY2013 -14 Scenario 2 Baseline- Pre - Workshop Summary for Curr yr Report CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 2 - 2013 BASELINE SCENARIO Fiscal Years 2013 -14 through 2022 -2023 3/28/2013 2:07 PM N:\ACC0UNTING \GMTEMPI \10 -Year Plan Projections\2013 -2014 Projections \Past - Workshop\z- FY2013 -14 Scenario 2 Baseline- Pre - Workshop Summary for Curr yr Report A I F G H I J K L M N O P 50 14�k- DEBT SERVICE FUND Projected »» 2012 -2013 1 2013 -2014 2 2014 -2015 1 3 2015 -2016 4 2016 -2017 5 2017 -2018 1 6 2018 -2019 7 2019 -2020 8 2020 -2021 9 2021 -2022 1 10 2022 -2023 51 52 53 TOTAL REVENUE: 5,567,376 5,552,435 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 54 TOTAL EXPENSE: 5,567,376 5,552,435 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 55 56 Ending Fund Balance - - - _ _ _ - - - _ _ s7 RUNNING EXPENSE FUND Projected »» 2012 -2013 1 2 3 4 5_ 6 7 2019 -2020 8 2020 -2021 9 2021 -2022 10 2022 -2023 58 2013 -2014 -- — 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 59 TOTAL REVENUE: 73,108,217 71,137,461 91,247,191 i 93,875,407 95,001,088 99,759,493 102,015,015 101486 721 102,939,245 104,203,392 112,548,823_ 111,033,817 99,456_,28.2 99,227,173 6o TOTAL EXPENSE: 70,221,247 73,598,684 78,288,135 91,173,720 93 425,608 94,775,031 99,493 021 61 REVENUE MINUS EXPENSE: 2,886,970 (2,461,224) 170,224 73,471 449,799 226,057 266,471 528,294 (1,264,147) 1,515,007 229,110 62 10,045,297 9.87% 10,311,768 9.90%1 10,840,063 9.90%1 9,575,915 9.76% 11,090,922 9.65% 11,320,032 9.70% 63 Ending Fund Balance 11,586,970 9,125,746 1 9,295,970 9,369,441 9,819,240 64 65 Prudent Reserve 11.82% 14.80% 10.01% 9.951 9.89% ss 67 SEWER CONSTRUCTION Projected »» 2012 -2013 1 1 2013 -2014 2 2014 -2015 3 2015 -2016 4 5 6 7 8 9 10 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 2022 -2023 sa TOTAL REVENUE: TOTAL CAPITAL EXPENDITURES: 21,877,563 I, - -- 32,344,000 29,561,430 - - - 29,575,000 28,578,784 - - -- -- - 26,172,180 27,842,350 33,419,294 - - 26,644,267 36,140,577 38,922,166 1 35,327,776 44,160,284 38,311,690 56,716,987 59,610,151 63,092,078 57,166,137 58,220,068 61,620,887 68,605,559 51,511,077 69 7o REVENUE MINUS CAPITAL EXPENDITURES: (10,466,437) (13,570) 2,406,604 1,198,083 (2,721,283) 3,594,389 5,848,594 (2,893,164) 5,925,941 (3,400,819) 17,094,482 71 BOND PROCEEDS: - - - 40,297,786 46,146,380 43,253,216 49,179,157 45,778,338 62,872,820 Ending Fund Balance 35,833,562 173 74 35,819,992 38,226,596 39,424,680 36,703,396 IMTOTAL FUND : Projected »» 2012 -2013 1 76 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 1 2020 -2021 2021 -2022 2022 -2023 77 TOTAL FUNDS AVAILABLE 47,420,532 44,945,738 47,522,566 48,794,120 46,522,636 50,343,083 56,458,149 54,093,279 58,755,072 56,869,260 74,192,852 78 FUNDS REQUIRED 79 100% of Debt Service 32% of Next Year's O &M Expense 30% of Next Year's Capital Expenditures 5,552,435 23,551,579 8,872,500 5,546,218 25,052,203 7,851,654 2,077,785 29,175,590 7,993,280 3,782,051 29,896,195 10,842,173 3,809,926 3,603,238 30,328Y010 31,837,767 10,598,333 11,493,507 3,600,701 321475,751 I 17,883,045 3,607,578 33,345,085 17,149,841 3,597,111 35,530,821 18,486,266 3,593,500 3,583,720 8o 36,596,746 37,694,648 81 13,809,959 13,809,959 82 TOTAL FUNDS REQUIRED 37,976,514 38,450,075 39,246,655 44,520,419 44,736,269 46,934,511 53,959,497 54,102,505 57,614,198 54,000,205 55,088,327 83 Funds Available Amount Above /(Below) Funds Required 9,444,018 6,495,663 8,275,911 4,273,701 1,786,367 3,408,572 2,498,651 (9,226) 1,140,874 2,869,055 19,104,524 84 85 3/28/2013 2:07 PM N:\ACC0UNTING \GMTEMPI \10 -Year Plan Projections\2013 -2014 Projections \Past - Workshop\z- FY2013 -14 Scenario 2 Baseline- Pre - Workshop Summary for Curr yr Report Central Contra Costa Sanitary District Funds Available Compared to Funds Required by Year Scenario 2 - 2013 Baseline Scenario 3/28/2013 2:07 PM N:\ACCOUNTING \GMTEMPI \10 -Year Plan Projections\2013 -2014 Projections \Post - Workshop \z- FY2013 -14 Scenario 2 Baseline- Pre - Workshop Summary for Curr yr Report Chart 9 $100,000,000 $901000,000 - Increased Funds Available for large projects in the next five years; new solids treatment (digesters or new furnaces). $80,000,000 1- Alternatively, funds could be used to paydown unfunded liabilities. $70,000,000 = $60,000,000 - -- - $50,000,000 / - o $40,000,000 - _ - _ _ _ , - $30,000,000 �- - -. - i i $20,000,000 -- $10,000,000 - $0 G 2009 -2010 2010 -2011 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 2022-2023 TOTAL FUNDS AVAILABLE 73,441,883 61,999,931 $54,999,999 47,420,532 44,945,738 47,522,566 48,794,120 46,522,636 50,343,083 56,458,149 54,093,279 58,755,072 56,869,260 74,192,852 ■TOTAL FUNDS REQUIRED 32,660,271 33,560,131 $37,741,375 37,976,514 38,450,075 39,246,655 44,520,419 44,736,269 46,934,511 53,959,497 54,102,505 57,614,198 54,000,205 1 55,088,327 Fiscal Year 3/28/2013 2:07 PM N:\ACCOUNTING \GMTEMPI \10 -Year Plan Projections\2013 -2014 Projections \Post - Workshop \z- FY2013 -14 Scenario 2 Baseline- Pre - Workshop Summary for Curr yr Report Chart 9 3.6. 2013 -14 Capital Improvement Budget and Ten Year Plan Capital Projects Committee Meeting April 2, 2012 Proposed Capital Improvement Ten-Year Plan (CIP) Summary 1 OEM M1, OWILLUIM 1 1 OEM M1, OWILLUIM 1 OEM M1, OWILLUIM 1 $365 Million Ten Year Plan Is a Responsible One That Funds. • Treatment Plant — Primary Sedimentation Renovation $ 13.5 M — Incinerator /Solids Handling Improvements $ 12.2 M — Contaminated Soils Remediation $ 20 M — Nitrification $ 70 M • Collection System — Renovation Needs $ 113 M — Capacity Needs $ 40 M — Pumping Stations Renovation $ 10M — CAD's and Developer Sewers $ 13 M • General Improvements and Treatment Plant — Seismic Improvements $ 1.8 M — Information Technology $ 5.6 M — Vehicles and Equipment $ 5.1 M • Recycled Water — Urban Landscaping $ 8.4 M FY 2013 -14 CIB Expenditure Recommendations Program/Project Total Cost I reatment Plant $ 9.0 million (31%) Collection System $12.4 million (42 %) General Improvements $ 4.8 million (16 %) Recycled Water $ 3.4 million (11 %) Total $29.6 million (100 %) 2 Capital Improvement Budget (CIB) Summary Treatment Plant Planning FY 2013 -14 One Time Renovation Program this FY Previous FY Proposed Authorization Expenditures Treatment Plant $14,227,000 S1,134,000 $15,361,000 $9,038,000 Collection System S12,559,000 $1,985,000 S14,544,000 S12,370,000 General $ 150,000 All Other Improvements S3,523,000 $1.848,000 S5,371,000 S4,756,000 Recycled Water S807,000 S2,746,000 S3,553,000 $3,416,000 Total this Fiscal Year S31,116,000 S7,713,000 S38,829,000 S29,580,000 FY 2013 -14 TREATMENT PLANT PROGRAM Reg. Compliance /Planning Treatment Plant Planning EXPENSE $ 810,000 One Time Renovation Pump & Blower Building Seismic $ 850,000 Primary Treatment Renovation $ 5,400,000 Co -Gen Renovation $ 400,000 Recurring Renovation Piping Renovation Phase 8 $ 100,000 TP Asset Management $ 150,000 All Other S 1,328,000 Total S 9,038,000 Primary Sedimentation Renovations FY 13 -14 $ 5,400,000 Total project $ 13,500,000 Pump and Blower Building Seismic Retrofit FY 13 -14 $ 850,000 Total Project $ 4,500,000 II Piping Renovation Phase 8 ac-- FY 13 -14 $ 100,000 Total project $ 1,250,000 Cogeneration Upgrades • Required cogeneration unit upgrades for five years maintenance contract with Solar Turbines FY 13 -14 $ 400,000 Total project $ 800,000 5 Treatment Plant Planning • NPDES Permit Adopted April 1, 2012 • Requires participation in collaborative studies to evaluate the role of ammonia and ammonium in inhibiting primary productivity (phyto and zoo plankton) in Suisun Bay. Final report due 11 -1 -2014. • Requires development of facilities plan to evaluate alternative treatment technologies to remove ammonia and site characterization for contaminated site. Final report due 2 -28 -2014. • Permit reopen on April 1, 2015 — will reassess the appropriateness of the total ammonia load limit. FY 13 -14 $ 810,000 10 year program $ 2,160,000 Treatment Plant Asset Management Vn FY 13 -14 $ 150,000 Total Project $ 300,000 0 FY 2013 -14 COLLECTION SYSTEM PROGRAM CATEGORY -. ANNUAL Renovation program North Orinda 5, Lafayette 8, $ 5,050,000 Lafayette 9, Diablo 2, Walnut Creek 10, Martinez 4 2013 CIPP $ 2,500,000 TV Inspection $ 800,000 Expansion /Capacity Renovation Assessment Districts, Development Sewerage $ 1,192,000 Pleasant Hill Grayson Creek $ 800,000 Pumping Stations /Force Mains Buchanan South PS Replacement, Moraga PS $ 600,000 Grinder All others $ 1,428,000 Total $ 12,370,000 Renovation Program FY 13 -14 $ 8,852,000 10 year program $ 113,812,000 2013 CIPP Ile pl...t r7 CIPP Installation y, f P FY 13 -14 $ 2,500,000 Total Project $ 2,978,000 TV Inspection FY 13 -14 $ 800,000 Total project $ 9,000,000 2.2© ©E 523'87'. Pleasant Mill - Pleasant MilUOrayaon Cree k Lafayette - Pleasant Mill Road piM�atad in FY 2011n2 s� u.e �'C• of i�.n ua r1 -fl Capacity Program w � L:Y- �zJ � � eye Walnut Croek- C3� ES; ~ fjr _.� • pj- 1 . Walnut Blvd t F a-e t -Tl .-d- braNbraga - Nga Way Q L Legend Cepecity Deficiency Oropp Percent FYIi Pipe Capa Gty •San Ramon - O 1 (2040 Devalepmen[, 6 -y.er Event) San Ramen $Cheri Yle C 2 No 51ope.1 Invert E- -10 Q 3 0 X100% % to < >130% Pleasant Hill — Grayson Creek Trunk 10 Pumping Stations • Completed major pumping stations renovations /improvements • Buchanan Pumping Station Abandonment • Fairview /Maltby Pumping Stations Improvements • Moraga Pumping Station Grinder Buchanan South P.S. Abandonment A. JAirpones, rol er FY 13 -14 $ 400,000 Total project $ 451,000 g Air Field Reconnect Airport Businesses Existing S2w.' = Proposed Sewers Sam's Club Remove C South C y^ Pumpin 7� Qrm to Ion Sports Reconnect ell & uba ~ Crowns Plaza Hotel Abandoned 6. Interceptor Line Relief G °n °pCd P� Interceptor 11 FY 2013 -14 GENERAL IMPROVEMENTS PROGRAM PROJECT Vehicles and Equipment ANNUAL $ 645,000 Information Technology ' $ 1,100,000 GDI- SMMS Replacement $ 450,000 Seismic Improvements HOB $ 1,800,000 All Other S 761,000 Total S 4,756,000 . Separate presentation 2013 -14 Vehicles & Equipment EQUIPMENT .& &BUDGET low FY 13 -14 S 645,000 10 year program $ 5,145,000 12 GDI & SMMS Replacement District 7atabases �1 Future Data Model jc�«omq �re�nwa�u Fulue alars to replaw 1 a� tea\ M4�ape r�T �wY 1[�aWY T�ly IM b eo—acol FY 13 -14 $ 450,000 Total project $ 495,000 Concord Fault Proximity to District Facilities Concord Fault MAW r ' Line to Fault l ~ ,� •;� I 1 like or -709ft �"N - Fnmp k Blower Bldg to Fatal - - aules of - 0.0818 (.I ��. _ nr.l n.il:•. r- i3�.1R GB to Fault .80 miles oc -- 421 t 0 �� ._ ::. 4, -ma y v ` k ' ' 13 HOB Seismic Construction FY 13 -14 $ 1,800,000 Total project $ 6,221,000 14 FY 2013 -14 RECYCLED WATER PROGRAM - -� Zone 1 and Martine7Planning other RConcorIrrigatio $ 356,000 n $ 3,060,000 Total $ 3,416,000 Concord Landscape Irrigation Project FY 13 -14 $ 3,060,000 Total project $ 4,336,000 2.5 miles of new pipe Over 34 New Customers 200 AFY $1 million Prop 84 Grant 15 FY 2013 -14 CIB Expenditure Recommendations IFY 2013-14 Program Total Cost Treatment Plant $ 9.0 million (31 %) BUDGETED -4 $4,790,000 Collection System $755,000 S12.4 million (42 %) $193,000 Property Taxes (Net after debt paid) General Improvements Sewer Service Charge ($40 capital component)* $ 4.8 million (16 %) Reimbursements from Others Recycled Water $4,277,000 $ 3.4 million (11 %) $63,000 Developer Fees /Other Total TOTAL $29.6 million (100 %) Sewer Service Charge is Critical Funding Source for Capital Program FY 2013-14 CAPITAL REVENUES Facility Capacity Fees BUDGETED -4 $4,790,000 Pumped Zone Fees $755,000 Interest Sewer Construction Fund $193,000 Property Taxes (Net after debt paid) $8,102,000 Sewer Service Charge ($40 capital component)* $6,628,000 Reimbursements from Others City of Concord $4,277,000 Recycled Water Sales (Net after O &M) $63,000 Developer Fees /Other $435,000 TOTAL $25,243,000 * Assumes $34 per year SSC increase 16 Sewer Service Charge Revenues Diverted from Capital Program to Balance District O &M Budget $500 $450 $439 $400 Total Charge per RUE $405 $397 $371 $350 $341 /' $365 $289 $300 $311 $311 $311 /`- $344 $300 $272 $280 $280 -1'�' 's— � $302 $246 �"•""`�' - -� —+ $300 $250 $224 ✓ $260 $292 $200 $218 $234 $242 $200 $207 $204 $213 $185 5204 $150 $100 S76 $76 Capital Program Component $50 $41 $51 $46 $19 $42 $D 2000 -01 2001.02 2002 -03 2003-04 2004-85 2005 -06 2006 -07 2001-08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 Preliminary Ten Year Plan Findings - Two -Year -$34 per Year Sewer Service Charge Increase to Fund Capital + O &M Fiscal SSC Ops SSC Cap Total SSC Total Est Year Compnt Compnt Cap Revenue Current $344 $27 $371 $21.6 2012 -13 million Prelim $365* $40 $405 $25.2 2013 -14 million Prelim $397* $42 $439 $24.4 2014 -15 1 million Paying down Unfunded Liabilities included in Operations component 17 SCF Cash Flow Balance CAPITAL Budgeted Projected Proposed 0 Proposed !PROGRAM FY 2012-13 FY 2012-13 FY 2013-14 FY 2014-15 E I Total Total $ 32.4 million - $ 29.3 million $ 29.6 million 11110 $ 26.5 million— Expenditures Itu Total $ 21.8 million $ 21.6 million $ 25.2 million $ 24.4 million Revenue Variance - $10.5 millon -$ 7.7 million -$ 4.3 million -$ 2.0 million SCF $35.8 million $38.6 million $ 34.3 million $ 32.2 million Balance (Balance on (Beginning (Balance on (Balance on 6/30/13) balance 6/30/13) 6/30/14) 6/30/14) Funds Required for Cash Flow - $27 — 32 million Increase in SSC Capital Component is needed to fully -------------- ------ - - - fund -Capital-Progr-am ...... -- ------- --- --- -- $70 0 Capital Program Has Been Deficit Spending Since FY 2004-05 V6 660.0 $60 0 S,6 540 0 'A A SA 322 530 -0 2 E Si S I $20,0 5c2 24,- 5211 � 570 0 $0 0 2z7 2 T V. S i17 W. S:4 S122 ............................................................................................................................. ..... *SCF Balance is not strictly governed by checkbook accounting and may not strictly represent the sum of prior year balance and current year variance. Assumes two year $34/each year SSC increases ig Next Steps in CIB /CIP Approval Process • Today - Review Report • April 11 - CIB and CIP Workshop • May 4 - Set Public Hearing to consider the FY 2013 -14 Capital Improvement Budget and 2013 Ten -Year Capital Improvement Plan • June 6 - Conduct public hearing to adopt FY 2013 -14 CIB and 2013 Ten -Year CIP Questions? 19 $1,000 $500 $0 ■ CSO ❑COMMUNICATION ❑ POD ❑ ESG ■ADMIN & ENG ■ IT IT Capital Budget FY2013 -2014 ZOO $35 $108 $112 $250 $537 ❑ CSO ❑ COMMUNICATION ❑ POD ❑ ESG ®ADMIN & ENG 19 IT Office Suite - Standard Purchase Office Suite - Enterprise Agreement Server Standard - Standard Purchase Server Datacenter - Standard Purchase Server Datacenter - Enterprise Agreement Five Year Costs 0 50 100 150 200 250 300 350 400 $ Thousand ■Year 1 ■ Year 2 ❑ Year 3 ❑ Year 4 ■ Year 5 Record mangement, archiving, document collaboration, version control Migrate website Records Mangement Communications Dept video SIWio - Hardware and .o are replacement Pilot tablet for field pump crew and IT Mainsaver Replacement CSO POD IT & POD Computer, laptop, punter replacements Communication Server /network replacements 3 Business Continuity ENGlESG Hardware replacement, software and storage upgrade T�G11Y IT Distdct Server Replication, Backup & Redundancy, HA, etc. GB 2013-2014 Automation/ -- - - - Improve Customer Service IT Microsoft and VMware licensing Process Improvement