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(Handout) Draft Fiscal Year 2014-15 Capital Improvement Budget (CIB) and 2014 Capital Improvement Plan (CIP)7-a - (#a ndo (A f) Item 7 a.) 2014 -15 Capital Improvement Budget and Plan Andrew Antkowiak Board Workshop December 19, 2013 Central Contra Costa Sanitary District Kick -off FY 2014 -15 Financial Planning • Today's meeting reviews proposed Capital Program Expenditures for FY 2014 -15 and next nine years • Review programs and selected 2014 -15 projects — Treatment Plant Program — Collection Systems Program — General Improvements Program — Recycled Water Program • Combined Operation & Maintenance and Capital Planning Ten Year Financial Plan Workshop in January/February 2014 Proposed Ten -Year Capital Improvement Program _ 2014.2015 2015-2016 3019.2017 2017.2018 2816.2019 2019.2020 2920-2021 2921 -2022 2422.2023 2023.2021 ToW Year 1 2 3 4 6 6 7 6 9 19 - Identified Renovation Needs Tmatmant Pint 82 M - Identified Capacity Needs $ 30 M - Pumping Station Renovation $ 10.2 M - CAD's and Developer Sewers $ 14 M General Improvements and Treatment Plant 1 -Rap. CompBanc►Phnnbp.'Sahry 563.000 691.000 025.000 1.035.000 425000 425.000 431000 3.871,000 9.390.000 15065 WD 32,821,000 2.Ona•nma Mnnva0nn 8103000 7. 326.000 9,381.00D B.621M0 5,950,000 3.655,000 2,080.000 580.000 277000 1.200000 47173000 3- Racunln9 Ranovatlon 308000 2 .670000 2060.000 1160000 4960ODD 4660.000 40810000 3310000 1760000 710000 26 708000 4- Eipamion 50000 100000 44Dm0 590000 Tmrfmmt ►lam Subntal 8.974.000 10.687000 12366.000 10.84000 11.335.000 9,040600 7321000 7.611000 11527000 17,415000 101.262000 Colhcllon Syatbm I an • R 10on 70266600 71,701 MO 13 651,000 13 401.DD0 14 614 ODO 13 SD1.000 5.751 mO B 851 000 B B00 000 10 200000 107 736.000 2•Ra9. CompllanCWPlannbi9;Sa/4ry 600.00D 575000 340900 340 DD0 240000 240.000 140000 110000 140000 140000 2895000 3•EaWna7on 4,301.000 1.301,000 1,301.000 1.306.000 1.501000 2002,000 17.502.000 6352000 8.371.000 8,788000 /2735000 4 - Pumpin9 Sntlona 1WODD 110.000 350.000 2.080000 1.$10.000 435.000 635000 1,595.000 2195,000 1.095000 10.185000 Colhedon Syatom Subtotal 12.317000 13717000 15.642000 17,121.000 17865.000 16.178000 18,026.000 18.938.000 17.508000 18.233000 M 661,ODD Oanatal Wprovamonta I - Vahklaa &aqufpmant 501. 000 501,000 501000 501000 500000 500000 500000 500000 500000 500000 5004000 2 - M..Mamant M/ormation Syatama 1450.000 500000 5W,000 5KODO 500. 000 500.000 500000 500000 500,000 500000 5950000 3•Pro/aah 485.000 470.000 485,000 655.000 480000 4BO.000 460.000 460000 5 18 000 4 -Aaaat Atana94mant Sm.DDO 500 000 500.000 500000 500 ODD 5W,0W 110000 110000 3390000 D4n4ra1 Imp-m-4 SubtoM 2846.000 197100 1968.000 1,980.000 I MOOO 1590000 t 590000 1. 19.529000 Ranychd Water q331 *D.N.7M R4cyclad Wow Subtotal 652000 487.ODO 4279000 560.000 550000 565,000 565000 5.411000 ClPlhl Prognm TOnl 2a8N.000 26.882.000 30421.000 .746000 21.748000 21.501000 28.904 000 3(,O ^' TV inspection program included in 0 &M budget $296 Million Ten Year Plan Is a Responsible One That Funds.... Treatment Plant - Primary Sedimentation Renovation $ 15 M - Cogeneration Replacement $ 6 M - Nitrification $ 4.5 M - Contaminated Soils Remediation $ 7 M - Incinerator /Solids Handling Improvements $ 6.2 M - Alternative Energy Facility $ 6.3 M - Screenings Removal $ 10M Collection System - Identified Renovation Needs $ 82 M - Identified Capacity Needs $ 30 M - Pumping Station Renovation $ 10.2 M - CAD's and Developer Sewers $ 14 M General Improvements and Treatment Plant - Seismic Improvements $ 9 M 2 Proposed FY 2014 -15 Capital Improvement Budget FY 2014 -15 CIB Program Total Cost Treatment Plant $ 9.0 million (36.1%) Collection System $12.3 million (49.4 %) General Improvements $ 2.9 million (11.6 %) Recycled Water $ 0.7 million (2.8 %) Total $24.9 million (100 %) • TV inspection program included in O &M budget FY 2014 -15 TREATMENT PLANT PROGRAM CATEGORY PROJECT ANNUAL EXPENSE Reg. Compliance /Planning Treatment Plant Planning $ 400,000 One Time Renovation Primary Treatment Renovation $ 6,200,000 DAF Tank Renovation $ 400,000 Centrifuge and Cake Pump Upgrades $ 1,000,000 Pump & Blower Seismic Upgrade $ 100,000 Recurring Renovation Piping Renovation Phase 8 $ 150,000 All Other $ 724,000 Total $ 8,974,000 $15.0 M Primary Sedimentation Tank Renovations Incorporates Condition Assessment Findings and Improves Efficiency • Ongoing Renovations — Replace Scum Collection System — Replace Chain Drives — Rehabilitate Concrete — Replace water and air supply piping — Replace Scum Skimmers and Thickener — Construct New Grit Handling Facilities — Upgrade /Renovate Electrical Conduits /Equipment — Primary Effluent Pumps DAF Tank Renovation • Emergency Repaired of DAF Tank No. 1 after arms failure. • Inspected all DAF Tanks. • The DAF Tanks Renovation project will replace the arms in other tanks, recoat exposed steel, and make additional repairs. • Budgeted $400,000. !In Centrifuge and Cake Pump Upgrades • Replace old, at the end of useful life, equipment • Improve reliability and performance of the sludge dewatering equipment • $1.1 million in FY 2014 -15 • $5.1 millon total project cost Piping Renovation Ongoing program to identify and replace deteriorated piping and equipment throughout the treatment plant. Treatment Plant Planning • NPDES Permit Adopted April 1, 2012 Requires • Submit Report to RWQCB by 2/28/14 • Ammonia Removal Optimization Study • Alternative Ammonia (Nutrient) Removal Technologies • Site Characterization Study • Nutrient Removal Technologies — Board update in January/February 2014 Nutrient Facility Plan & Site Characterization Element 1: II II Element 2: Plant Optimization Nutrient Visioning Plan (near term w /existing facilities) (long term w /new, facilities) Primary Baffle Study Total Nitrification Study (2010 HDR) BioWin Configuration Plant Optimization for ' —�'valuaii.n � Ammonia Removal Eion Nitrification Rate Tests IlCyanide Removal Optionsll Element 3: Site Characterization (contaminated soil dispos:Vtreatment for new facilities) 101 Cost of Contaminated Soil Remediation (If Nitrification needs the Footprint) • Cost depends on Waste Class (estimated 150,000 cy) - Non Hazardous — landfill - $18.9 Million (Haul to Keller Canyon Landfill) - Non- RCRA — Hazardous - $18.5 - 27.6 Million (Rail transport to Utah) - On -site treatment - $27 — 39.5 Million (Stabilization /Solidification) - On -site Relocation • Characterization study underway • Assume $7 Million for planning purposes in year 10 (2023 -24) 7 Seismic Retrofit Program Project 2014 10 -YR CIP CONSTRUCTION Pump & Blower $ 3,400,000 Yr. 2 -FY 2015 -16 POB Office Area $ 1,400,000 Yr. 5 - FY 2018 -19 TP Warehouse $ 950,000 Yr. 6 - FY 2019 -20 Laboratory $ 277,000 Yr. 10 - FY 2023 -24 SCB1 $ 1,200,000 Yr. 10 - FY 2023 -24 Total $ 7,227,000 $ 390,000 1 Seismic Retrofit of SCB is estimated at $7 -8 Million for construction; does not include bracing furnaces. Budgeted outside 10 year plan in anticipation of potential change in solids handling method. FY 2014 -15 COLLECTION SYSTEM PROGRAM CATEGORY PROJECT ANNUAL EXPENSE Renovation program North Orinda 5, Walnut Creek 10, and others $ 6,850,000 Capacity /Renovations Grayson Creek Trunk in Pleasant Hill $ 3,400,000 Pumping Stations Pumping Station equipment, piping replacement and Safety Improvements $ 150,000 Developer services Developer Services $ 700,000 Contractual Assessment Districts Current CADS $ 200,000 Reg. Compliance & Planning Planning and CS Modeling $ 390,000 All others $ 627,000 Total $ 12,317,000 * Excluded TV inspection program ($1 million per year included in O &M budget) Pipe Renovated to Date Miles of pipe (6, 8 &10 Inch) renovated to date. FISCAL YEAR PIPE RENOVATED 2006/07 8.1 Miles 2007/08 5.6 Miles 2008/09 6.3 Miles 2009/10 7.5 Miles 2010/11 2.6 Miles 2011/12 6.8 Miles 2012/13 5.3 Miles 2013/14 4.5 Miles TOTAL Completed Renovation 46.7 Miles Renovation Program (6, 8 & 10 inch) Achieves 100% Completion of all known defects by FY 23/24 Total miles of pipe to be renovated - 82.8 miles* Miles of pipe renovated to date - 46.7 miles Remaining miles to renovate - 36.1 miles * Based on TV inspection of 99 percent of 6, 8 and 10 inch mains ** Provides $9.2 million for lines currently not identified by TV program * ** Estimated at $320 /ft I,'7 10 Yr Budget Miles of Percent of for Pipe Known Renovation Renov. in Defects (millions) ** Next 10 Renov. in Yrs * ** 10 Yrs $69.9 41.3 100 %+ * Based on TV inspection of 99 percent of 6, 8 and 10 inch mains ** Provides $9.2 million for lines currently not identified by TV program * ** Estimated at $320 /ft I,'7 SSO Downward Trend Has Been Significant Since Start of Renovation Program Running 12 -Month Overflow Totals 2003 to present so 180 00 so 0 — ,Q� - I' 4 A Q We 4 4 � 0 4 0C 0 7 > > 7 � 1 7 7 � 7 7 12 -Month Total at Month -End SSO Downward Trend Has Been Significant Since Start of Renovation Program 10 Capacity Program w �\ Pleaeont HIII - ti , Pleasant HIII /6royson Croak w ♦ Z u.r ' 10 year plan includes Lafayette. �^ ° r '- ce-a $30M for high priority Pleasant HIII Road.'y (Co leted in FY 2011/12) ` F ®. x capacity projects Walnut creak- Walnut Blvd _ —L F2 B Moroga. J Moroge Way � re Legend Son Ramon ( P-ny Daflclarcy o-.P Parean( Full Plpa C.P.-Ily San Ramon Schedule G O 1 (2040 D-lopa,am. 5-y ., E-, ❑ 2 No 6bpe or Irrven Elev Had1 � O 2 c•1O0X 11 /=le 'O MUIA Yom • -� � vow Rt r I! A yi �,t u 1 y` ice, P HILL GRAYSON CREEK tt1 CCCiii CAPACITY PROJECT 11 FY 2014 -15 GENERAL IMPROVEMENTS PROGRAM PROJECT ANNUAL EXPENSE Vehicles and Equipment $ 500,000 Information Technology $ 1,000,000 GDI Treatment Plant and SMMS Replacement $ 450,000 Asset Management $ 500,000 All Other $ 496,000 Total $ 2,946,000 Treatment Plant Renovation Needs Continue to be Identified with Condition Assessments *Determine the likelihood of failure and /or the remaining life of the asset. - Completed Assessments: - Concrete - Asphalt Paving - Protective Coatings - Transformers Buildings re Seismic s Presence of Hazardous Materials sCritical Piping (Aeration) - Elevators Electrical Switchgear Asset Information Asset Name: Report Primary Sedimentation Tank 1 •.wR... aia •.w �.u.. nM.r N.. E.unubM WYUIIY. RwnWMa: taID Vr. rrr Rr... e- .a+m.RanMER -R.en m...„�anwrM..lbxanl Mt .. e..Y6� Photo 13'. Bey 1 • Detail of Exposed Aggregate Above Water Una (Typical) 12 Using Asset Management Techniques to Scope Treatment Plant Renovation Projects Assets Condition Assessment Business Risk Exposure (BRE) - Remaining useful life? - Consequences of failure (criticality)? - Deficiencies? - Likelihood of failure? Business Risk Analysis Determine Projects & Group Appropriately — by Location "Primary Renovation" or by Asset Type "Piping Renovation Incorporate in 10 year CIP GDI & SMMS Replacement ESGSQ \S ESG Date District and Developer Jobs Mapping GeoMedia colleebon system plan and profile drawings AutoCAD SOL Server 2005 R FYE l.adtww) ESG Data 0%+ 4, N, -- _ EMMS NORKFLOWSEE "�./�WRIONAL DIAGRAM °Itl \ °p' .I IBM AS14DO Be rver SOL S- 2005 OiSerie CSO-D2 HTE Acura ColdFuslon (Reports) MapGuide (Spatial) I q1, GD: V.%b Server (Wnd— tom S-11S 9 GI SOL Server 2005 SQL -0t cccsDLFS (L.I.fthn. IT? ]44, 13 FY 2014 -15 RECYCLED WATER PROGRAM PROJECT ANNUAL EXPENSE Pleasant Hill Zone 1, Martinez $ 202,000 Refineries and other REW Planning Concord Landscape — Customer $ 450,000 Connections Total $ 652,000 Customer Connections Up to 34 New Customers Budgeted $450,000 1. ®� Bid in spring ' 2014 .one Proposed FY 2014 -15 Capital Improvement Budget FY 2014 -15 CIB Program Total Cost Treatment Plant $ 9.0 million (36.1%) Collection System $12.3 million (49.4°/x) General Improvements $ 2.9 million (11.6 %) Recycled Water $ 0.7 million (2.8 %) Total $24.9 million (100 %) TV inspection program included in 0 &M budget 15 Sewer Service Charge is Critical Funding Source for Capital Program FY 2013 -14 CAPITAL REVENUES BUDGETED Facility Capacity Fees $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 1 $25,243,000 Current Year Program Sets Beginning SCF Balance for Ten Year Plan FY 2013 -14 CAPITAL PROGRAM BUDGETED Total Expenditures $29.6 million Total Revenue $25.2 million Variance -$4.3 million Beginning SCF Balance 6/30/13 Projected SCF Balance on 6/30/14 $40.8 million $36.4 million IN Capital Program has been deficit spending for many years Capital Program Has Been Deficit Spending Since FY 2004 -05 $700 $6S6 $600 -556 9 - $57.3 -$552 00 M Net Bond Sah Sauter Construction 5536 551.8 551.7 $500 SN.3 5521 u63 us4 use S400 8 S40 B a - a Ann I Panse 530.0 536.3 1 ��A 530 0 2 2 S24.B 9 c $20.0 621.6 $18.9 „- 5 .524.8 Annual Revenue 21.9 5752 5214 6 Or t, 190 s e $100 - - - -- -- $00 2613 -td 2014-15 1BB4W 200001 21201 -02 2002-03 200301 2004.05 2005W 2006-07 2007-08 2008-09 200470 2010.11 2011.12 2012.13 BudgM Prelim -0-Amuai Revenue 521.6 $189 $17.0 523.5 5262 530.0 5248 536.3 535.3 5761 521.9 $156 521.7 522.3 6252 $244 tir�Amual EaPeree 5206 $32 $318 $25.4 $19B 526.5 527.7 539.6 S33.1 $36.7 529.1 6260 52 /B 526.6 529.6 5259 �SCF Balance SS6.9 517.8 611.3 $15.4 5538 $57.3 $552 551.8 5517 5160 565.6 552.1 5163 1 510.8 536.4 $313 'SFC Balance is not strictly governed by checkbook accounting and may not strictly represent the sum of prior year balance and current year variance. FY 2014.15 Preliminary Annual Capital Expense w/o TV program is $24.9 Sewer Service Charge Revenue Diverted from Capital Program to Balance O &M Budget Total Sewer Service Charge per RUE and the Operations and Capital Components $600 $450 $439 $ 5 $400 Total Charge per RUE $341 $396 5 350 $311 $311 $311 5 $289 $300 $300 $272 5280 $280 5302 5248 5292 $300 5250 $224 5242 $260 $200 �� $200 5204 $207 $216 ' $204 $213 QPBrallOns Component $150 $185 $100 $76 sse Capital program Component $41 $50 515 $ 0 $54 $76 S46 $5 9 511 9 0 $43" SO 7 200001 2001-02 2012-03 2W404 2004-05 2MS-06 2006-07 2007-08 20WM 200410 201011 2011.1222012.13 2013.14 2014-15 Preis * TV inspection program included in Capital Program Component 17 Preliminary Ten Year Plan Findings - 2014 Service Charge Increase is Needed to Fully Fund Capital + O &M FY 2014 -15 CAPITAL PROGRAM BUDGETED Total Expenditures $24.9 million Total Revenue $23.4 million Variance -$1.5 million Projected SCF Balance on 6/30/14 Projected SCF Balance on 6/30/15 $36.5 million $34.9 million Board Role in Capital Program is Ongoing • Set Initial Capital Funding Levels in December • Confirm Capital Funding Levels in Jan /February as part of overall District Ten Year Financial Plan • Board Workshop Focused on CIB /CIP Projects April • Authorize CIB /Program Budgets and O &M Budget in June • Authorize Supplemental Program Funds when needed • Award Construction Projects > $100,000 • Authorize Construction Change Orders >$100,000 • Authorize Consultant Contracts > $100,000 ig Questions or Comments? 19