Loading...
HomeMy WebLinkAbout06.a.1)b) DRAFT FY 2016-17 District BudgetCe tra Co tra Costa Sa 17 FY 2 oi 6 Itary District BUDGE Central Contra Costa Sanitary District Protecting Public Health and the Environment Board of Directors David R. Williams Director Tad J. Pilecki President Michael R. McGill Director James A. Nejedly Paul H. Causey President Pro Tem Director DISTRICT MANAGEMENT Roger S. Bailey General Manager Ann Sasaki Deputy General Manager, Director of Operations Vacant Director of Budget and Finance Jean -Marc Petit Director of Engineering and Technical Services Elaine Boehme Secretary of the District Kent Alm District Counsel Table of Contents Message from the General Manager Introduction District Overview 1 Vision, Mission, and Values 2 Organizational Structure 3 Effective Utility Management Attributes 4 FY 2016-18 Strategic Plan and Initiatives 5 Financial Planning Process 8 Financial Planning Policies 9 Financial Summary 11 Overview 11 Source of Funds 11 Use of Funds 11 Sewer Service Charge 13 Operations and Maintenance Budget 13 Salaries and Benefits 16 Budgeted Full -Time Equivalents 17 Variances in the Operations and Maintenance Budget 18 Operating Departments 19 Capital Improvement Budget (CIB) 20 Reserve Projections 21 Debt Service 22 Operating Departments 23 Administration Department 24 Engineering and Technical Services Department 47 Operations Department 59 Self -Insurance Program 78 Capital Improvement Program 86 Ten -Year Capital Improvement Plan 168 Debt Program 184 ii General Manager Budget Message Board of Directors: I am pleased to present the Central Contra Costa Sanitary District's FY 16-17 combined budget. We have incorporated the Operations and Maintenance, Capital Improvement, Self -Insurance, and Debt Service budgets into one document to provide a more user-friendly and transparent format for our customers. During the current fiscal year, we made a conscious effort to afford the Board more time, including more budget -related meetings and special workshops, to deliberate over critical policy issues. Accordingly, the Board has adopted a formal Reserve Policy, a decision that is consistent with best practices adopted by most of the leading municipalities and public utilities across the country. In addition, the Board has agreed to earmark an addition $2.5 million to mitigate the Unfunded Actuarial Accrued Liability (UAAL) and the liability associated with Other Post -Employment Benefits (OPEB). These decisions will further strengthen the District's financial resilience, and will be even more advantageous as it embarks on a future faced with large infrastructure replacement and the potential for further exposure to the bond market. This budget reflects the Board's policies and provides the resources necessary to accomplish the District's mission to protect public health and the environment, and to achieve the following goals of our Strategic Plan: 1. Provide exceptional customer service 2. Strive to meet regulatory requirements 3. Be a fiscally sound and effective water sector utility 4. Develop and retain a highly trained and innovative workforce 5. Maintain a reliable infrastructure 6. Embrace technology, innovation and environmental sustainability iii General Manager Budget Message The past fiscal year has been a very successful one for the District. During this time, we have maintained our excellent record in meeting the needs of the communities we serve. A few of our major accomplishments include: - Development of a two-year Strategic Plan that establishes policy direction and identifies goals for achieving increased effectiveness and efficiencies throughout the organization for FY 2016-18. - Implementation and successful completion of Central San Academy, a program which focuses on educating our customers on the mission of the District and how it is executed. - Implementation of an Asset Management Program that will help us to achieve the most cost-efficient methods of operating, maintaining, and replacing assets. - Awarded for 18 consecutive years of 100% compliance with our National Pollutant Discharge Elimination System permit. - Implementation of a comprehensive Strategic Communications Plan that increases outreach to our customers by adding social media and video public service announcements. - Completion of a wide-ranging survey of our customers that will help us to improve our levels of service, communication, and customer satisfaction. - Completion of a Supervisory Academy for employees. - Implementation of a new Mentorship Program for employees. - Expansion of our recycled water, residential fill station and commercial truck fill station. - Household hazardous waste, and pharmaceutical collection programs. - Increased collection at the Household Hazardous Waste Facility (HHW) and pharmaceutical drop-off sites. - Earning the Achievement of Excellence in Procurement Award for the fifth consecutive year. - Initiating a multiyear business continuity planning process. - Installation of solar panel projects at three facilities. The proposed FY 16-17 budget will enable us to build upon those and other successes in the most optimal manner. While our staff works tirelessly to improve our business practices, we will continue our commitment to provide the highest quality wastewater services for our customers. I want to thank the Board for providing the vision and resources necessary to achieve the District's goals and respond to future challenges. Finally, I want to thank the District staff for working so diligently to develop this budget, which will ensure that we are well positioned financially to accomplish our goals. We recognize that the communities within our District rely on us for a basic but very critical service, and accordingly, the proposed budget represents our commitment to excellence. By planning for the future, making good financial decisions, implementing new technologies and processes, and maintaining a highly skilled and dedicated workforce, the District will remain a world-class organization that provides our customers with exceptional service and value, now and well into the future. VI bl Roger S. Bailey General Manager iv "i District Overview Introduction B Vq•-- Orinda • • Mar Clyde • • Pacheco • Concord • Pleasant Hill • • Walnut Creek Lafayette • Moraga • Clayton • Alamo Danville_ 4• S Ramon District Overview The Central Contra Costa Sanitary District (District) was established in 1946 and is located about 30 miles east of San Francisco. The District provides wastewater services for approximately 476,400 residents and more than 3,000 businesses within a 145 -square mile area of central Contra Costa County. This area includes Danville, Lafayette, Martinez, Moraga, Orinda, Pacheco, Pleasant Hill, San Ramon, Walnut Creek, and unincorporated areas within central Contra Costa County. The District also treats wastewater for residents of Concord and Clayton under a 1974 contract with the City of Concord. CCCSD serves 476,400 customers within its 145 -square -mile service area. ■ Sewage collection and wastewater treatment (and HHW service) for 339,000 people ▪ Wastewater treatment for 137,400 residents in Concord and Clayton by contract and HHW service ▪ HHW disposal only ▪ CCCSD's Headquarters, treatment plant, HHW Collection Facility and Residential Recycled Water Fill Station located in Martinez The District miles of sew wastewater t an average o which is disc 2 million gal to produce r potable purp industrial pr operates and maintains m er pipelines, 19 pumping s reatment plant that cleans f 32 million gallons per da harged into Suisun Bay. Ions per day receives furt ,cycled water that is ideal oses such as landscape irr ore than 1,500 tations, and a and disinfects y, most of Approximately her treatment for non- igation and o cesses. The District's Residential Recycled Water Fill Station provides free recycled water to residential customers for hand -watering lawns, gardens, and landscaping. Nearly 12 million gallons were distributed through the Fill Station in 2015. In addition to responsibilities a Household that collects, r than 2 million approximately customers each Collection Pro and safely disp unwanted dru its wastewater and recycle , the District operates an( Hazardous Waste Collectio ,cycles, or safely disposes pounds of hazardous was 30,000 residential and sm year; and a Pharmaceuti Pro: d water l maintains n Facility of more to from all business cal at collect pounds of with 13 locations th ose of more than 12,000 r gs each year. 1 VISION, MISSION &VALUES Our Vision To be a high-performance organization that provides exceptional customer service and regulatory compliance at responsible rates. Our Mission To protect public health and the environment. People - Value customers and employees Respect each other - Work as a team - Celebrate our successes and learn from our challenges Our Values Community - Value water sector partners Foster excellent community relationships - Be open, transparent and accessible - Build partnerships - Understand service level expectations Principles - Be truthful and honest - Be fair, kind and friendly - Take ownership and responsibility Leadership and Commitment Work effectively and efficiently Promote a passionate and empowered workforce Encourage continuous growth and development Inspire dedication and top-quality results 2 Organizational Structure Organizational Structure Secretary of the District Citizens of the District Board Members General Manager Deputy GM/ Director of Operations Director of Budget and Finance Counsel for the District Director of Engineering and Technical Services The District is governed by a Board of Directors whose five members are elected on a non- partisan basis and serve a four-year term. The Board appoints the General Manager, the Secretary of the District, and the Counsel for the District. The District is organized into three departments: Administration, Engineering and Technical Services, and Operations. Its current 290 budgeted full-time employees are led by a Deputy General Manager, two Department Directors, and twelve Division Managers. The District's main headquarters, Board room, and treatment plant are located at 5019 Imhoff Place in Martinez. The District's collection system operations are headquartered at 1250 Springbrook Road in Walnut Creek. Strategic Plan Summary For FY 2016-18, the District implemented a two-year Strategic Plan that establishes policy direction that will enable the District to increase efficiencies and continue in its role as stewards of the environment. The Strategic Plan outlines the District's core commitments, focused initiatives, and key performance measurements. The strategic goals reflect the challenges that many water sector agencies face as we strive to increase quality and minimize the cost of services to our customers. These challenges include: Enhanced customer expectations and public - Expanded challenges associated with employee awareness recruitment and retention Aging infrastructure - Security and emergency response concerns Regulatory requirements - Sustainable regional water supply concerns Financial constraints - Increased focus on resource recovery The strategic goals and initiatives were developed using the Effective Utility Management (EUM) framework as an overarching tool. The EUM was originally developed by the Environmental Protection Agency and water industry leaders in 2007. The framework is made up of ten attributes that provide a succinct indication of where effectively managed utilities should focus and what they should strive to achieve. 3 Effective Utility Management Attributes Product Quality Produces "fit for purpose" water that meets or exceeds full compliance with regulatory and reliability requirements and is consistent with customer, public health, ecological, and economic needs. Customer Satisfaction Provides reliable, responsive, and affordable services in line with explicit, customer -derived service levels. Employee and Leadership Development Recruits and retains a workforce that is competent, motivated, adaptive, and safety focused. Operational Optimization Ensures ongoing, timely, cost-effective, reliable, and sustainable performance improvements in all facets of its operations in service to public health and environmental protection. Financial Viability Understands the full life -cycle cost of utility operations and the value of water resources. 4 Infrastructure Strategy and Performance Understands the condition of and costs associated with critical infrastructure assets. Enterprise Resiliency Ensures utility leadership and staff work together internally, and with external partners, to anticipate, respond to, and avoid problems. Water Resource Sustainability Ensures the availability and sustainable management of water for its community and watershed, including water resource recovery. Community Sustainability Takes an active leadership role in promoting and organizing community sustainability improvements through collaboration with local partners. Stakeholder Understanding and Support Engenders understanding and support from stakeholders (anyone who can affect or be affected by the utility), including customers, oversight bodies, community and watershed interests, and regulatory bodies for service levels, rate structures, operating budgets, capital improvement programs, and risk management decisions. Connectins Effective Utility IVanacement with District Strategic Plan & Initiatives A brief summary of the Strategic Plan's goals and strategies follows. For a complete copy of the Strategic Plan, including initiatives and key performance indicators, please go to centralsan.org FY 2016-18 Strategic Plan and Initiatives Alignment with Effective Utility Management Attributes and District Values Goal 1 — Provide Exceptional Customer Service Strategy Initiative EUM Attribute Value Foster Customer Engagement and Awareness Improve Interdepartmental Collaboration Invest in business process changes and technologies to effectively increase access to District information and promote customer care, convenience and self- service. Increase customer understanding and support for key issues facing the District. Build and maintain relationships with Federal, State and Local Elected Officials and key stakeholder groups. Provide high quality customer service. Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Customer Satisfaction Operational Optimization Leadership and Commitment Stakeholder Understanding and Community Support Stakeholder Understanding and Community Support Customer Satisfaction Community Customer Satisfaction People Employee and Leadership Development People, Community Goal 2 — Strive to Meet Regulatory Requirements Strategy Initiative EUM Attribute Value Strive to Achieve 100% Permit Compliance in Air, Water, Land and Other Regulations Strive to Minimize the Number of Sanitary Sewer Overflows Renew treatment plant NPDES permit. Meet existing regulations and plan for future regulations. Foster relationships with regulatory agencies. Monitor and track proposed and pending legislation/regulatory changes that may impact District operations. Actively manage GHG emissions in the most cost-effective and responsible manner. Complete the collection system scheduled maintenance on time and optimize cleaning schedules to improve efficiencies. Continue the pipeline condition assessment and cleaning quality assurance program using the system -wide CCTV program. Product Quality Product Quality Stakeholder Understanding and Support Stakeholder Understanding and Support Community Sustainability Infrastructure Strategy and Performance Infrastructure Strategy and Performance Principles Principles Community Community Principles Leadership and Commitment Leadership and Commitment 5 FY 2016-18 Strategic Plan and Initiatives Strategy Conduct Long -Range Financial Planning Manage Costs Initiative Ensure rate structure is consistent with cost of service principles. Improve the application and processing of capacity fees for consistency across user classes. Develop a long-range debt management policy. Develop alternatives for new revenues and funding sources (i.e., Interagency agreements, services, recycled water). Perform targeted audits of critical/high-risk functions or processes. Perform optimization studies of treatment plant and field operations to reduce costs. Evaluate and implement risk management practices to minimize loss. EUM Attribute Financial Viability Financial Viability Financial Viability Financial Viability Enterprise Resiliency Operational Optimization Enterprise Resiliency Value Community Principles Community Principles Principles Leadership and Commitment Principles Leadership and Commitment Principles Goal 4 — Develop and Retain A Highly Trained and Innovative Workforce Strategy Ensure Adequate Staffing and Training to Meet Current and Future Operational Levels Enhance Relationship with Employees and Bargaining Units Meet or Exceed Industry Safety Standards Initiative Assess, develop, and implement District - wide training needs. Develop and train our future leaders. Cultivate a positive work culture and promote teamwork. Sustain and grow collaborative relationships with the labor bargaining units. Achieve consistent improvement on State of California and Bay Area Industry Injury Rate. Enhance the safety culture through improved training and communications. EUM Attribute Employee and Leadership Development Employee and Leadership Development Employee and Leadership Development Stakeholder Understanding and Support Employee and Leadership Development Employee and Leadership Development Value People, Leadership and Commitment People, Leadership and Commitment People, Leadership and Commitment People, Community People, Principles, Leadership and Commitment People, Principles 6 Strategy Augment the Region's Water Supply Evaluate Business Processes and Optimize Business Operations Reduce Reliance on Non -Renewable Energy Encourage the Review and Testing of Promising and Leading Technology Initiative Explore partnering opportunities (e.g., CCWD and EBMUD). Develop a Satellite Recycled Water Facilities (SRWF) Program. Perform business process mapping and re-engineering. Explore opportunities for self -generation, conservation and efficiency based on the Board -approved Comprehensive Wastewater Master Plan. Expand and improve the use of cost effective mobile computing and communication technologies. Continue developing and investing in cost-effective innovation, technology and applied research and development. EUM Attribute Water Resource Sustainability Water Resource Sustainability Operational Optimization Community Sustainability Operational Optimization Operational Optimization Principles, Leadership and Commitment Leadership and Commitment Leadership and Commitment Leadership And Commitment Leadership And Commitment Principles Principles FY 2016-18 Strategic Plan and Initiatives Goal 5 — Maintain A Reliable Infrastructure Strategy Manage Assets Optimally ThroughoutTheir Lifecycle Facilitate Long-term Capital Renewal and Replacement Protect District Personnel and Assets from Threats and Emergencies Initiative Implement Board -approved recommendations from the Comprehensive Wastewater Master Plan and Condition Assessment. Update the Consequence of Failure Matrices. Implement the reliability centered maintenance (RCM) program. Manage and maintain current equipment and vehicle fleet to provide maximum value. Integrate the data from the Asset Management Program into the analysis of long-term capital improvement needs. Implement business case evaluations, including life -cycle cost, into proposals for new CIP projects to determine most cost- effective projects and solutions. Enhance our capability to mitigate, prepare, respond, and recover from emergencies. Evaluate and implement appropriate improvements to our Security Program to meet new or evolving threats. EUM Attribute Value Infrastructure Strategy Principles, Community and Performance Enterprise Resiliency Infrastructure Strategy and Performance Infrastructure Strategy and Performance Infrastructure Strategy and Performance Infrastructure Strategy and Performance Enterprise Resiliency Enterprise Resiliency Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Value Community Community, Leadership and Commitment Leadership and Commitment Leadership and Commitment Leadership and Commitment Leadership and Commitment 7 Financial Planning Process The District by law uses an enterprise fund to account for the operations of the District. The District currently has one enterprise fund which is comprised of four internal sub -funds: - Operations and Maintenance (Running Expense Fund) - This fund provides for the general operations, maintenance and administration of the District. Sewer Service Charge revenues are collected by the Contra Costa County Tax Assessor's Office and remitted to the District in two installments in April and December of each year. In order for the District to pay its ongoing expenses throughout the year, it reserves five months (41.7%) of gross operating expenditures at the start of each fiscal year. - Sewer Construction Fund - This fund provides for treatment plant and collection system asset renewal and replacement expenditures, as well as office facilities renewal, vehicle and equipment replacement, information systems replacement and miscellaneous capital needs. Property Tax and Sewer Service Charge revenues, which comprise a significant portion of annual capital project revenues, are also collected by the Contra Costa County Tax Assessor's Office and remitted to the District in two installments in April and December of each year. In order to meet the cash flow needs of the capital projects program, the District reserves 50% of the annual capital projects budget at the start of each fiscal year. - Self -Insurance Fund - This fund accounts for interest earnings on cash balances in this fund and cash allocations from other funds, as well as for costs of insurance premiums and claims not covered by the District's insurance coverage. The District has self-insured a portion of its liability and property risks since July 1, 1986, when the Board approved the establishment of the Self -Insurance Fund (SIF). The District is self-insured for three events up to $500,000 per occurrence for its general and automobile liability program, for a total of $1,500,000. The current deductible of $500,000 reduces the amount of premiums incurred by the District. In order to help mitigate the financial impacts and maintain uninterrupted service in the event of an emergency or catastrophic event, the District maintains an Emergency Fund Reserve balance of $5 million in the SIF. Actuarial studies are performed every other year and are used to set the GASB 10 liability amount. - Debt Service Fund - This fund accounts for activity associated with the payment of the District's long-term bonds and loans. The District's total combined budget for FY 2016-17 is $131 million. The revenue sources to support this budget include: - Residential Sewer Service Charges - Commercial Sewer Service Charges - Sewer Connection Fees (Capacity Fee and Pumped Zone Fee) - City of Concord (contract to treat wastewater) - Ad Valorem Property Taxes - Other Reimbursements (i.e., proceeds from the sale of recycled water and permit fees) 8 Financial Planning Policies The significant policies that play a role in managing the District's risks are summarized below. Reserve Policy There is a strong emphasis placed on maintaining adequate reserves and having a reserve policy ensures long-term financial stability. The Board has established a policy, Board Policy 017, setting targets for each of the District's reserve funds. Fiscal reserves provide working capital for operations and maintenance activities; funding for long- term capital improvement requirements; fulfillment of legal, regulatory and contractual obligations; and mitigation of risk and liability exposures. For the Operations and Maintenance Fund - Working Capital Reserves, the Board has set a target of five months (41.7%) of gross operating expenses at the start of each fiscal year. For the Sewer Construction Fund (Capital Improvement) - Working Capital Reserves, the Board has set a target of 50% of the annual capital projects budget at the start of each fiscal year. For the Self -Insurance Fund Reserves, the Board has set a target of three times the annual deductible, of $500,000. In addition, to help mitigate the financial impacts and maintain uninterrupted service in the event of an emergency or catastrophic; event the District maintains an Emergency Fund Reserve balance of $5 million in the self-insurance fund. Debt Policy One of the Board's FY 2016-17 strategic goals is to formalize a debt policy for the District. The District has utilized a pay-as-you-go philosophy and uses debt financing for large capital improvements brought about by regulatory changes or other unforeseen factors. Currently, the District is repaying a State of California Water Reclamation Loan and 2009 Revenue Bonds. As of June 30, 2015, total outstanding debt was $36.5 million. Debt Restrictions currently include: - Revenue Pledge and Covenant - The District pledges Property Tax Revenue along with its ability to raise Sewer Service Charge (SSC) rates. - Debt Service Coverage Ratios (DSCR) are adhered to - The District's DSCR are much higher than required. The DSCR must be above 1.0. This ratio measures the availability of current financial resources to pay for debt service. This is calculated by dividing Net Revenue by Total Debt Service. The 1.0 shows that after paying all operating expenses, an issuer only has exactly enough funds to pay its debt service obligations. The District's ratio typically ranges from 4.0 to 6.3. A second DSCR, which uses Adjusted Net Revenue (total revenue less connection fees and capital charges from the City of Concord) divided by Total Debt Service, must be 1.25. The District's DSCR typically ranges from 3.0 to 4.6. The DSCR is one of the primary metrics used by credit rating agencies and investors to assess the credit worthiness of an issuer. In summary, a higher DSCR means less borrowing, better credit ratings, and minimize cost of debt. Conversely, a lower DSCR means more borrowing, lower credit ratings, and more expensive debt. Because of the District's prudent debt -funding policies and resulting higher than required DSCRs, the District is a highly rated issuer. The District's Standard and Poor's rating is AAA. 9 1 Financial Planning Process Highly rated issuers generally have DSCRs that exceed the covenanted levels. As part of the District's strategic goals, the Board adopted a DSCR policy target of 2.0 or above. A higher DSCR target provides for a more appropriate preservation of long-term financial integrity. Investment Policy The District's investment policy is based on state law and prudent money management. All investments are in accordance with the District's investment policy and Sections 53646 and 53601 of the California Government Code. The District has formal agreements with Contra Costa County allowing them to act as the District's banker and they invest all District funds. Securities are held in a custodial account separate from the County. The investment policy applies to all District funds and investment activities except for the Governmental Accounting Standards Board (GASB) GASB 45 Trust Investments. Although not required by law, the investment policy is presented to the Board of Directors annually. The District's priorities are in this order: safety, liquidity and yield. The policy addresses issues such as permitted investments, bank and dealers, maturities, diversification, risk, delegation of authority, prudence, controls, reporting and performance evaluation. GASB 45 Trust Investment Guidelines are also presented to the Board of Directors annually. The GASB 45 Trust Investments, which are longer term investments, are invested to attain moderate earnings. HighMark Capital Management is used as an investment advisor and the Trust is held with Public Agency Retirement Services. Budget Calendar 1 r 10 r e— JULY/OCTOBER • Identify Issues • Prior Year SSC Placed on Tax Roll • Update Recycle Water Rates • Calculate Administrative Overhead .. J MARCH/JUNE - Conduct Board of Directors Committees/Meetings/Workshops - Conduct Public Hearings - Adopt Final Budget and Resolution N. NOVEMBER/JANUARY • Refine Issues • Conduct Capital Budget Workshop - Develop Financial Projects - Update Capacity & Developer Related Fees, Rates and Charges JANUARY/MARCH - Conduct Financial Planning Workshop - Receive Board of Directors' Direction r Financial Summary Overview The FY 2016-17 Budget incorporates the District's Strategic Goals and Initiatives and provides the resources necessary to advance the Strategic Plan and meet the challenges the District faces as it strives to increase service quality and minimize the cost to its customers. At the same time, the budget allows the District to accomplish its mission in the most cost-effective, financially sustainable manner to ensure best value to our customers. The District's FY 2016-17 total budget is $131 million, an increase of $7.4 million or 5.9% over last year's budget of $124 million. As shown in Table 1, the main driver for the increase in the total Budget is an increase in Sewer Construction from $30.8 million in FY 2015-16 to $36.8 million in FY 2016-17 for a 19.6% increase. The Operations and Maintenance budget is $89.8 million for $2.3 million greater than the current FY 2015-16 budget of $87.5 million. Salaries and wages are the primary cause of this variance, driven by a 4% salary adjustment consistent with bargaining unit Memoranda of Understanding. The Self -Insurance Fund is set at $948,000 to cover the costs of premiums and estimated losses based on historical trends. Table 1 — FY 2016-17 Total Budget Fund Operations and Maintenance Sewer Construction Debt Service Self -Insurance Total Budget Expenditures FY 2015-16 Budget FY 2016-17 Budget $87,464,864 $30,790,000 $3,822,330 $1,917,000 $123,994,194 $89,810,918 $36,808,756 Budget to Budget Variance $2,346,054 $6,018,756 Percent Variance 2.7% 19.6% $3,790,807 ($31,523) -0.8% $948,000 ($969,000) -50.6% $131,358,481 $7,364,287 5.9% Source of Funds The sources of funds (revenues) for FY 2016-17 are shown in Figure 1. The sewer service charge is the largest source of revenue at $83 million, followed by revenue from the City of Concord and tax revenue. Use of Funds The uses of funds (expenditures) for FY 2016-17 are shown in Figure 2. Two expenditure categories, Operations and Maintenance and Sewer Construction, account for over 96% of the total budget. 11 Financial Summary Figure 1 — Where the Money Comes From Household N RetyrleclWater Hazardous Waste 50,000 5888;3.30 0.396 W Craw Fria Reserves 51,824,673 1.4S N Other Revenue SPurtes 55,097,493 3.9916 • Capacity Fees $ 6,060,000 4.6% Illi Sewer Service Ch a rge $82,920,000 63.1% li Tax Revenue $14,2.23,310 11.3x5 A City of C6n[Drd S19, 3 40,003 14.7;S FY 2016-17 Total Funding Sources - $131,358,481 Figure 2 — Where the Money Goes 12 111 Self -Insurance $948,000 0.7% 1d Operations & Maintenance $89,810,918 68.496 -II Debt Service_ $3.790.807 2.9% Sewer Construct' $36,808,756 28.096 FY 2016-17 Total Funding Uses - $131,358,481 Financial Summary Sewer Service Charge (SSC) Table 2 shows the Board -approved SSC for FY 2016-17 compared to the FY 2015-16 rates. The rates are based on a Cost of Service Study and was approved by the Board of Directors in June 2015. Approximately 85.8% of the SSC revenue is allocated to the Operations and Maintenance Budget and the remaining 14.2% is allocated to the Capital Improvement Budget. Table 2 — Approved Annual Sewer Service Charge Single Family Residences Multi -Family Residences Effective Date FY 2015-16 $471 $463 7/1/2015 FY 2016-17 $503 $487 7/1/2016 Operations and Maintenance Budget The total Operations and Maintenance revenue for FY 2016-17 is projected to be $89.8 million. Compared to the FY 2015-16 budget amount of $87.5 million, revenue has increased by 2.7%. This is due to the following: While the SSC rates are increasing, the Operations and Maintenance allocation of SSC is decreasing from 89.7% to 85.8%. The net result of these changes is a minimal increase in the total Operations and Maintenance SSC revenue of $0.7 million, or 1.0%. m The City of Concord primarily shares a flow portion of Treatment Plant, Environmental and Regulatory Compliance, and Environmental Compliance expenses and is charged administrative overhead and a finance charge. City of Concord revenue is expected to be $1.1 million or 8.0% more than FY 2015-16 due to residential fill station expense and the overall Operations and Maintenance expense increase for FY 2016-17. The total Operations and Maintenance expenses are projected to be $89.8 million in FY 2016-17 compared to $87.5 million in FY 2015-16. This reflects an increase of $2.3 million or 2.7%. Through a series of meetings with management staff, the District has achieved a budget that addresses its critical needs and provides funding for key activities. Table 3 and Figure 3 show the FY 2016-17 Operations and Maintenance Budget by expense category. 13 Financial Summary Table 3 - FY 2016-17 Budgeted Operations and Maintenance Revenues and Expenditures I, 1 Revenue: Sewer Service Charge Concord SSC Permit & Inspection Fees Lease Rental Income HHW Reimbursement Stormwater / Pollution Prevention Interest Income Recycled Water Other Total Revenue FY 2015-16 Budget $70,390,000 $13,700,000 $1,047,000 $619,300 $879,000 $268,000 $103,000 $75,000 $411,000 $87,492,300 FY 2015-16 Projected $71,753,500 $14,260,000 $1,576,300 $613,500 $878,000 $300,000 $164,000 $92,000 $423,000 $90,060,300 FY 2016-17 Budget $71,100,000 $14,790,000 $1,430,000 $616,200 $888,000 $310,000 $233,000 $100,000 $350,000 $89,817,200 Budget to Budget Variance $710,000 $1,090,000 $383,000 ($3,100) $9,000 $42,000 $130,000 $25,000 ($61,000) $2,324,900 Percent Variance 1.0% 8.0% 36.6% - 0.5% 1.0% 15.7% 126.2% 33.3% - 14.8% 2.7% Expenditures: Salaries & Wages Benefits & Cap O/H Credit Retirement UAAL Additional UAAL Total Salary and Benefits Chemicals Utilities Repair & Maintenance Hauling & Disposal Professional & Legal Fees Outside Services Self Insurance Expense Materials & Supplies Other Expenses Total O&M Total Expenditures 14 $30,943,085 $18,823,521 $1 1,900,700 $2,500,000 $64,167,306 $1,655,000 $4,780,250 $5,369,900 $998,550 $640,300 $3,883,115 $1,500,000 $2,210,045 $2,260,398 $23,297,558 $87,464,864 30,749,781 $19,924,131 $1 1,900,700 $2,500,000 $65,074,612 $1,552,000 $4,252,350 $4,897,432 $904,250 $552,250 $3,755,009 $1,500,000 $2,307,111 $2,1 16,134 $21,836,536 $86,911,148 $33,158,707 $19,525,611 $1 1,741,700 $2,500,000 $66,926,018 $1,920,000 $4,315,790 $5,222,852 $941,050 $630,750 $3,980,175 $920,000 $2,100,025 $2,854,258 $22,884,900 $89,810,918 $2,215,622 $702,090 $(159,000) $- $2,758,712 $265,000 $(464,460) $ (147,048) $(57,500) $(9,550) $97,060 $(580,000) $(110,020) $593,860 $(412,658) $2,346,054 7.2% 3.7% - 1.3% 0.0% 4.3% 16.0% - 9.7% - 2.7% - 5.8% - 1.5% 2.5% - 38.7% - 5.0% 26.3% -1.8% 2.7% Figure 3 — FY 2016-17 Operations and Maintenance Budget by Expense Category Chemicals & .4I I Other Utilities 6.0% Other Benefits/ 6.96 Vacancies/Cap OH 2.0% Unfunded Uahility Contribution 2.8% Retirement -NC 6.6% Retirement- UAAL 13.196 Medical 13.1% Financial Summary Materials & Repairs & OutsideServlces Supplies Maintenance 4.4% 2.396 5.8% Salaries 36.9% FY 2016-17 Budgeted Operations and Maintenance Expenses (in thousands) Salaries Medical Retirement-UAAL Retirement -NC Unfunded Liability Contribution Other Benefits /Vacancies / Cap OH Chemicals & Utilities All Other Repairs & Maintenance Outside Services Materials & Supplies Total $33,159 $1 1,762 $11,741 $5,926 $2,500 $1,838 $6,236 $5,346 $5,223 $3,980 $2,100 36.9% 13.1% 13.1% 6.6% 2.8% 2.0% 6.9% 6.0% 5.8% 4.4% 2.3% $89,811 100.0% 15 Financial Summary Salaries and Benefits Salaries and benefits account for 75% of the overall Operations and Maintenance Budget, and will increase by $2.8 million or 4.3% in FY 2016-17 in comparison with FY 2015-16 as shown in Table 4. Overall, including Sewer Construction Fund (Capital Improvement), salaries and benefits will increase by $2.5 million or 3.3%. Table 5 shows the allocation of District salaries and benefits to the Operations and Maintenance Fund and the Sewer Construction Fund. Table 4 — Operations and Maintenance Salaries and Benefits O&M Salaries Total O&M Salaries O&M Workers' Compensation O&M Medical & Health O&M Dental O&M Retirement - Normal Cost O&M Retirement - UAAL O&M Deferred Comp/Medicare O&M Other Benefits O&M Unfunded Liability Contribution OPEB Contribution (future contribution only; does not include retiree healthcare premiums) O&M Accrued Compensated Absence O&M Benefit Vacancy Factor Total O&M Benefits O&M Capitalized Administrative Overhead Credit FY 2015-16 Budget $30,943,085 $30,943,085 $523,316 $10,985,237 $944,272 $5,861,541 $1 1,900,700 $2,194,087 $280,475 $2,500,000 $2,631,600 $360,000 ($1,145,000) $37,036,228 ($3,812,007) FY 2015-16 Projected FY 2016-17 Budget $30,749,781 $30,749,781 1 $593,963 $10,300,086 $935,770 $5,172,627 $1 1,900,700 $2,085,549 $240,025 $2,500,000 $2,975,751 $350,000 $37,054,471 ($2,729,640) $33,158,707 $33,158,707 $402,948 $11,761,900 $880,109 $5,925,249 $1 1,741,700 Budget to Budget Variance $2,215,622 $2,215,622 ($120,368) $776,663 ($64,163) $63,708 ($159,000) $2,264,571 $70,484 $305,727 $2,500,000 $2,528,700 $360,000 $25,252 ($102,900) ($1,159,000) ($14,000) $37,511,904 $475,676 ($3,744,593) $67,414 7.2% 7.2% -23.0% 7.1% - 6.8% 1.1% - 1.3% 3.2% 9.0% - 3.9% 0.0% 1.2% 1.3% -1.8% 1 Total O&M Salaries and Benefits $64,167,306 $65,074,612 $66,926,018 $2,758,712 4.3% 1 Capital Salary and Benefits** Total O&M and Capital Salaries and Benefits ** Made up of capitalized salaries, benefits and administrative overhead charged to District Capital projects $9,612,541 $73,779,847 $7,369,072 $72,443,684 $9,311,425 $76,237,443 $(301,116) -3.1% $2,457,596 16 3.3% Regular Employees 287 290 Table 5 - Salaries and Benefits by Operations and Maintenance Budget and Operations & Main Financial Summary Sewer Construction Budget otal Distri FY 2015-16 Budget FY 2016-17 Budget Variance FY FY 2015-16 2016-17 Budget Budget Variance FY 2015-16 Budget FY 2016-17 Budget Variance Salaries $30,215,569 $32,217,344 $2,001,775 $3,110,682 Salary ($594,000) ($440,000) $154,000 Vacancy Overtime $1,094,493 $1,059,363 ($35,130) Standby $227,023 $322,000 $94,977 Total Salaries Benefits $38,181,228 $489,676 $ 30,943,085 $33,158,707 $2,215,622 Benefit Vacancy Total Benefits Capital Admin. O/H ($1,145,000) $37,036,228 $ (3,812,007) $38,670,904 ($1,159,000) $37,511,904 $ (3,744,593) ($14,000) $475,676 $ 67,414 ($57,000) $2,955,114 ($155,568) ($36,000) $21,000 $122,991 $125,273 $2,282 $3,176,673 $2,623,861 $2,623,861 $ 3,812,007 $3,044,387 ($132,286) $2,522,445 ($101,416) $2,522,445 ($101,416) $3,744,593 $(67,414) $ 33,326,251 $ 35,172,458 $1,846,207 ($651,000) $1,217,484 $227,023 $34,119,758 $40,805,089 ($1,145,000) $39,660,089 ($476,000) $175,000 $1,184,636 ($32,848) $322,000 $94,977 $2,083,336 $36,203,094 $41,193,349 $388,260 ($14,000) ($1,159,000) $40,034,349 $374,260 Total Sala s and $64,167,306 $66,926,018 $2,758,712 $9,612,541 $9,311,425 ($301,116) $73,779,847 $76,237,443 $2,457,596 Benefits Budgeted Full Time Equivalents Table 6 shows budgeted full time equivalents. Table 6 - Budgeted Full Time Equivalents Limited Duration Employees Summer Students Co-ops 29 30 9 11 17 Financial Summary Variances in the Operations and Maintenance Budget Operations and Maintenance Salaries District salaries are $ 33.2 million in FY 2016-17 compared to a budget of $30.9 million in FY 2015-16. This is an increase of $2.2 million or 7.16%. The primary driver of this increase is a 4.0% salary adjustment consistent with the bargaining unit Memoranda of Understanding. Additional costs are due to the filling of vacant positions, merit increases for newer employees, standby pay for the electrical and instrumentation shops, and the addition of three new key positions, a Maintenance Planner, a Training Coordinator, and a Program Manager. These three positions were identified in the Staffing Needs Assessment and were included in the Cost of Service Rate Study. District Benefits District benefits for the Operations and Maintenance budget are $37.5 million in FY 2016-17 compared to a budget of $37 million in FY 2015-16. This is an increase of 1.3%. The primary benefit rate assumptions are as follows: - Kaiser - Increase of 6.9% for active employees and a weighted 2.1% increase for retirees. ▪ Health NET - Increase of 7.6% for active employees and a weighted 6.4% increase for retirees. - CCCERA - Retirement rate decreasing 8% overall, offset by higher pensionable wages. An additional $2.5 million paid towards the unfunded liability in retirement and/or other post -employment benefits (OPEB) trust. - Delta Dental - Decrease of 8.2%. - Long -Term Disability - No rate increase. ▪ Employee Assistance Program - Decrease of 2% - Workers' Compensation - Estimated 10% rate increase. - Life Insurance - Estimated 3% rate increase. All Other Operations and Maintenance Expenses The remaining Operations and Maintenance non -labor and benefit expenses total $22.9 million in FY 2016- 17 compared to a budget of $23.3 million in FY 2015-16. This is a decrease of $412,658 or 1.8%. Additional information is included in the individual Division budgets. The areas of most significant changes are as follows: - Chemicals and Utilities - While there is an increase in chemical expenses due to the need to meet new Section 129 Clean Air Act regulations, this increase is offset by lower natural gas and electricity costs. - Repair and Maintenance - This expense increased due to the elimination of the one-time cost for the cogeneration rebuild in FY 2015-16. - Self -Insurance Expense - This expense was reduced to meet the requirements for the payment of premiums and estimated losses based on historical trends. ▪ Other Expenses - This expense increased due to the additional outreach for the Comprehensive Master Plan, the Central San Academy and other signature events, mailing of Proposition 218 notices, and the Fall 2016 Board Election. - Conferences and Training - This expense is included in the other expenses category. This expense was reduced from $213,000 in FY 2015-16 to $112,000 in FY 2016-17 due to a significant reduction in travel and the number of conferences, as shown in Table 7. 18 Table 7 - Conferences Board Conferences District -wide Conferences FY 2015-16 $50,000 $162,800 Total $212,800 Y 201 $50,000 Variance $62,350 (100,450) $112,350 $(100,450) Financial Summary Percent Variance Operating Departments Table 8 provides a summary of the budgets for the operating departments. Further details on the operating departments are included in the Operating Departments Section. Table 8 - Operations and Maintenance Budget by Department -61.7% -47.2% Department Totals FY 2015-16 Budget FY 2015-16 Projected FY 2016-17 Budget Budget to Budget Variance Percent Variance Administration Department Communication Services & Intergovernmental Relations Finance $2,553,572 $2,390,101 $2,507,401 ($46,171) -1.8% Human Resources $9,488,625 $9,452,664 $12,104,264 $2,615,639 27.6% Information Technology $3,578,603 $3,201,420 $3,700,951 $122,348 3.4% Purchasing & Materials Services $1,838,832 $1,741,926 $1,763,107 ($75,725) -4.1% Risk Management $2,735,942 $2,721,082 $2,008,786 ($727,156) -26.6% Office Of The General Manager/ Office Of The Secretary Of The $3,185,187 $3,639,852 $3,619,999 $434,812 13.7% District $25,297,760 $25,073,514 $27,828,993 $2,531,233 10.0% $1,916,999 $1,926,469 $2,124,485 $207,486 10.8% Engineering and Technical Services Department Capital Projects Division Environmental & Regulatory Compliance Division Planning & Development Services Division $1,121,576 $1,941,650 $1,199,904 $78,328 7.0% $9,053,167 $8,796,765 $8,243,342 ($809,825) -9.0% $6,494,079 $6,076,875 $6,455,894 ($38,185) $16,668,822 $16,815,290 $15,899,140 ($769,682) -0.6% -4.6% Operations Department Collection System Operations $14,996,254 $14,383,123 $14,472,053 ($524,201) -3.5% Division Plant Maintenance Division $14,364,061 $14,426,653 $14,035,700 ($328,361) -2.3% Plant Operations Division $15,357,256 $14,599,653 $14,859,845 ($497,411) -3.2% District Safety $780,711 $802,815 $913,468 $132,757 17.0% Recycled Water Program $0 $810,100 $1,801,719 $1,801,719 - $45,498,282 $45,022,344 $46,082,785 $584,503 1.3% Total All Departments $87,464,864 $86,911,148 $89,810,918 $2,346,054 2.7% 19 Financial Summary Capital Improvement Budget (CIB) Sewer Construction Fund revenues increased $6.1 million from $28.8 million in FY 2015-16 to $34.9 million in FY 2016-17. This increase was due primarily to an increase in sewer service charges of $3.7 million as a result of customer rate increases. Capital expenditures for FY 2016-17 are $36.8 million, a $6 million increase over the FY 2015-16 budget of $30.8 million. The District will spend down approximately $1.9 million of reserves to balance the capital budget in FY 2016-17. Table 9 is a summary of the projected FY 2016-17 CIB revenues and expenditures. Further details are included in the Capital Improvement Program Section. Table 9 — Sewer Construction Fund Revenues and Expenditures FY 2015-16 Budget FY 2015-16 Projected FY 2016-17 Budget Budget to Budget Variance Percent Variance Revenue Capacity Fees Pumped Zone Fees Interest Income $6,184,000 $5,500,000 $6,060,000 $450,000 $450,000 $400,000 $187,000 $189,000 $225,000 ($124,000) ($50,000) $38,000 Ad Valorem Taxes $10,060,000 $10,800,000 $11,080,000 $1,020,000 Sewer Service Charge $8,1 10,000 $8,275,400 $1 1,820,000 $3,710,000 -2.0% -11.1% 20.3% 10.1% 45.7% Reimbursements City of Concord Recycled Water Sales $257,000 $310,000 $300,000 Developer Fees & Charges Total Revenue $3,150,000 $3,260,000 $4,550,000 $369,500 $28,767,500 $461,083 $29,245,483 $470,400 $34,905,400 $1,400,000 $43,000 $100,900 $6,137,900 44.4% 16.7% 27.3% 21.3% Expenditures Treatment Plant Program $10,410,000 $8,718,000 $13,125,000 Collection System Program $15,950,000 $15,220,000 $17,925,105 General Improvements Program Recycled Water Program $450,000 $720,000 $500,000 Contingency Total Expenditures $3,980,000 $3,880,000 $3,808,651 $30,790,000 $28,538,000 $1,450,000 $36,808,756 $2,715,000 $1,975,105 ($171,349) $50,000 $1,450,000 $6,018,756 26.1% 19.5% Sewer Construction Funds Available Projected Revenue Projected Expenditures Drawn from Funds Available 20 $34,905,400 $36,808,756 $(1,903,356) Financial Summary Reserve Projections The Board has established Board Policy - 017, Fiscal Reserves, setting targets for each of the District's reserve funds. Fiscal reserves provide working capital for operations and maintenance activities, funding for long-term capital improvement requirements, fulfillment of legal, regulatory and contractual obligations, and mitigation of risk and liability exposures. For the Operations and Maintenance Fund - Working Capital Reserves, the Board has set a target of five months (41.7%) of gross operating expenses at the start of each fiscal year. For the Sewer Construction Fund (Capital Improvement) - Working Capital Reserves, the Board has set a target of 50% of the annual capital projects budget at the start of each fiscal year. For the Self -Insurance Fund Reserves, the Board has set a target of three times the annual deductible, which in this case is $1.5 million. In addition, to help mitigate financial impacts and maintain uninterrupted service in the event of an emergency or catastrophic event, the District maintains an Emergency Fund Reserve balance of $5 million in the self-insurance fund. Table 10 presents a summary of the District's current reserve balance projections compared to the Board Policy targets. Table 10 - Reserve Projections Sewer Construction Fund (Capital) Self Insurance Fund Projected Balance as of June 30, 2016 $39,668,857 $18,376,517 $6,500,000 $64,545,374 Projected Balance as of June 30, 2017 $39,675,139 $16,473,161 $6,500,000 $62,648,300 Reserve Policy Target $37,421,216 $18,404,378 $6,500,000 $62,325,594 21 12.00 - 10.00 - 8.00 - 6.00 - Financial Summary Debt Service Current debt service expenditures include outstanding payments on a State of California Water Reclamation Loan and 2009 Revenue Bonds. Details on the Debt Service is included in the Debt Program Section. Figure 4 depicts all existing debt payments for the District. Figure 4 - Debt Service Payment Schedule 0 $3,500,000 - $3,000,000 - $2,500,000 - $2,000,000 - $1,500,000 - $1,000,000 - $500,000 - ‘o b 1°)ti0 til by ti3 n,‘''tis' .1, tiA ' ti0ti� ,)O ■ Principal • Interest An important financial performance metric is the Debt Service Coverage Ratio. The Board target coverage ratio is 2.0. As shown in Figure 5, the District will meet the overall Debt Service Coverage Ratio of 2.0 as required. Figure 5 - Debt Service Coverage Ratio 4.00 - 2.00 - ,23 o° ��Oy 06 1I' 13 1t` 1y ;\ 11 1, 1, ti0 ti0 ti0 ti0 ti0 Net Revenue Debt Service Coverage Ratio <1> -. Adjusted Net Revenue Debt Coverage Ratio <2> 22 Operating Departments On a day-to-day basis, the three Operating Departments carry out the mission of the District to protect public health and the environment by providing exceptional customer service in wastewater collection, treatment, recycled water, and household hazardous waste collection. The Departments are guided by the District's Strategic Plan, which provides direction and initiatives to help the District in achieving its goals and objectives. The following sections describe the responsibilities of each Department and their operating budget needs. The total operating budget for FY 2016-17 is $89.8 million. 23 Administration Department The Administration Department consists of the Office of the General Manager, the Office of the Secretary of the District, Human Resources, and Administrative Services. The primary function of the Administration Department is to provide services that support the efficient operation of the District, including administrative support to the General Manager; financial management; purchasing and materials management; information technology; risk management; and human resources. The Department is also responsible for advancing the District's policy objectives with state and federal legislative bodies in addition to being responsible for interagency relations and public affairs. The Divisions that comprise this Department include: - Communications Services and Intergovernmental Relations - Finance - Human Resources - Information Technology - Purchasing and Material Services - Risk Management - Office of the General Manager - Office of the Secretary of the District 24 Administration Department Communication Services and Intergovernmental Relations OVERVIEW This Division supports the District's internal and external communications, government relations, community outreach, media relations, District publications, and student educational programming. It also oversees a contracted, full-service reprographics center which serves all District workgroups. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goal: Goal Accomplishments Goal 1 - Provide Exceptional Customer Service Developed a comprehensive Strategic Communications Plan to increase outreach to our customers. Launched District communications on Facebook, YouTube, and Twitter social media platforms. Grew educational outreach through our publications and programs reaching more students with important pollution prevention information. Developed video public service announcements that televised important and timely pollution prevention messages reaching tens of thousands of viewers. Comprehensively surveyed our customers to meet/exceed our levels of service, communication, and customer satisfaction. 25 Administration Department Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal 1 Strategy Goal 1 — Provide Exceptional Customer Service Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 6 — Embrace Technology, Innovation and Environmental Sustainability 26 Foster Customer Engagement and Awareness Improve Interdepartmental Collaboration Enhance Relationship with Employees and Bargaining Units Evaluate Business Processes and Optimize Business Operations Invest in business process changes and technologies to effectively increase access to District information and promote customer care, convenience, and self- service. Increase customer understanding and support for key issues facing the District. Build and maintain relationships with federal, state and local elected officials and key stakeholder groups. Provide high quality customer service. Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Cultivate a positive work culture and promote teamwork. Perform business process mapping and re-engineering. Customer Satisfaction Stakeholder Understanding and Support Stakeholder Understanding and Support Customer Satisfaction Customer Satisfaction Employee and Leadership Development Employee and Leadership Development Operational Optimization Budget Overview By Expense Category Account Description Salaries &Wages Employee Benefits Repairs & Maintenance Professional & Legal Services Outside Services Materials & Supplies Other Expenses FY 2015-16 Budget $627,854 $546,640 $1,000 $0 $340,500 $58,975 $342,030 FY 2015-16 Projected $625,000 $560,164 $1,000 $0 $340,500 $58,975 $340,830 FY 2016-17 Budget $664,176 $513,804 $1,000 $2,600 $409,000 $61,675 $472,230 Budget to Projected Variance $39,176 ($46,360) $0 $2,600 $68,500 $2,700 $131,400 Percent Variance $0 ($0) $0 $0 $0 $0 $0 Administration Department Budget to Budget Variance $36,322 ($32,836) $0 $2,600 $68,500 $2,700 $130,200 Percent Variance 5.8% -6.0% 0.0% 0.0% 20.1% 4.6% 38.1% Total $1,916,999 $1,926,469 $2,124,485 $198,016 $0 $207,486 10.8% Personnel Requirements Regular Status Employees Communication Services and Intergovernmental Relations Manager Community Affairs Representative Graphics Technician Media Production Technician Public Information and Production Assistant Limited Duration Employees Graphic Design Summer Student Total Total FY 2015-16 1.00 2.00 1.00 1.00 1.00 6.00 FY 2015-16 1.00 1.00 FY 2016-17 1.00 2.00 1.00 1.00 1.00 6.00 FY 2016-17 1.00 1.00 Significant Budget Adjustments The Communications Services and Intergovernmental Relations Operating Budget for FY 2016-17 is $2.1 million, a $207,000 or 10.8% increase over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, the main drivers for the change are outreach for the Comprehensive Wastewater Master Plan, the Central San Academy and Signature Events, mailing of the Proposition 218 notices, and legislative analysis. 27 Accomplishment Administration Department Finance OVERVIEW This Division is responsible for maintaining internal controls over financial reporting of all District funds and accounts. The Division administers the transactions related to cash and investments, debt service, cash receipts, accounts payable, sewer service charges and all other revenues, payroll, pension, and capital assets. The Division is also responsible for the budget document preparation and coordinates the process with all other departments in the District. Monthly financial statements are prepared, reviewed, and analyzed by the Division and submitted to the Board of Directors for their review. The District is subject to an annual external audit which is also administered and coordinated by the Division. Subsequent to the audit, the Division assembles the Comprehensive Annual Financial Report (CAFR) which is submitted to the Board of Directors and the Government Finance Officers Association. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goal: Goal Goal 3 — Be a Fiscally Sound and Effective Water Sector Utility - Maintained a AAA credit rating with Standard & Poor's. Maintained a ratio of net operating revenue over debt service of at least 2:1. Addressed the unfunded liabilities by paying an additional $2.5 million in pension contributions and fully funding the Other Post -Employment Benefits (OPEB) annual required contribution. - Received an unmodified (clean) audit opinion on the financial statements. - Maintained service affordability by keeping the sewer service charge below the median of other Bay Area agencies. Adopted updated Investment and Reserve Policies for the District. 28 Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Goal 1 — Provide Exceptional Customer Service Goal 3 — Be a Fiscally Sound and Effective Water Sector Utility Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce ategy Improve Interdepartmental Collaboration Conduct Long Range Financial Planning Manage Costs Enhance Relationship with Employees and Bargaining Units Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Ensure rate structure is consistent with cost of service principles. Improve the application and processing of capacity fees for consistency across user classes. Develop a long range debt management policy. Develop alternatives for new revenues and funding sources. Perform targeted audits of critical/high risk functions. Cultivate a positive work culture and promote teamwork. Administration Department M Attribut Customer Satisfaction Employee and Leadership Development Financial Viability Financial Viability Financial Viability Financial Viability Enterprise Resiliency Employee and Leadership Development Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Evaluate Business Processes and Optimize Business Operations Perform business process mapping and re-engineering. Operational Optimization 29 FY 2016-17 Budget $1,155,209 $977,212 $1,000 $1 13,750 Budget to Projected Variance $66,346 ($82,731) $500 $36,850 $223,500 $88,600 $9,800 ($2,100) $26,930 $9,835 $2,507,401 $117,300 Regular Status Employees Administration Department Budget Overview By Expense Category Account Descri • tion Salaries &Wages Employee Benefits Repairs & Maintenance Professional & Legal Services Outside Services Materials & Supplies Other Expenses FY 2015-16 Bud • et $1,151,933 $1,107,584 $1,000 $102,750 $138,000 $15,250 $37,055 $2,553,572 FY 2015-16 Pro'ected $1,088,863 $1,059,943 $500 $76,900 $134,900 $1 1,900 Personnel Requirements $17,095 $2,390,101 A Accountant Accounting Technician III Finance Administrator Finance Manager Payroll Senior Accountant Percent Variance $0 ($0) $1 $0 Budget to Budget Variance $3,276 ($130,372) $1 1,000 Percent Variance 0.3% $1 $85,500 62.0% ($0) ($5,450) -35.7% $1 ($10,125) -27.3% $0 ($46,171) -1.8% FY 2015-16 3.00 3.00 1.00 1.00 1.00 1.00 FY 2016-17 3.00 3.00 2.00 1.00 1.00 0.00 Total 10.00 10.00 Significant Budget Adjustments The Finance Operating Budget for FY 2016-17 is $2.5 million, a $46,000 or 1.8% decrease over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, there were no significant budget changes. 30 Administration Department Human Resources OVERVIEW This Division manages all Human Resources services, including employee/labor relations; recruitment, testing and selection; classification and compensation; employee benefits administration; District -wide training; and organizational development. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goal: Goal Accomplishment Goal 4 - Develop and Retain a Highly Trained and Innovative Workforce Administered over 30 recruitments. - Commenced a District -wide Classification Study and a Total Compensation Study. - Developed and implemented the Supervisory Academy and launched the Mentorship Program. - Held various Human Resources Supervisory Training and"brown bag" sessions. - Negotiated a decrease in health care premiums resulting in annual savings of $131,800. - Awarded a contract to Alliant Employee Benefits resulting in an annual savings of $160,000 in employee benefits. Earn and learn award. 31 1 Administration Department Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Goal 1 — Provide Exceptional Customer Service 1 Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Strategy Improve Interdepartmental Collaboration Ensure Adequate Staffing and Training to Meet Current and Future Operational Levels Enhance Relationship with Employees and Bargaining Units Evaluate Business Processes and Optimize Business Operations Budget Overview by Expense Category Account Descri • tion Salaries &Wages Employee Benefits Professional & Legal Services Outside Services Materials & Supplies Other Expenses Total 32 FY 2015-16 Budget FY 2015-16 Projected a Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Develop and implement District -wide training needs. Develop and train our future leaders. Cultivate a positive work culture and promote teamwork. Sustain and grow collaborative relationships with the labor bargaining units. Perform business process mapping and re-engineering. EUM Attribu Customer Satisfaction Employee and Leadership Development Employee and Leadership Development Employee and Leadership Development Employee and Leadership Development Stakeholder Understanding and Support Operational Optimization FY 2016-17 Budget Budget to Projected Percent Variance Variance Budget to Budget Variance Percent Variance $596,178 $591,400 $727,877 $136,477 23.08% $131,699 22.1% $8,455,232 $8,432,159 $10,964,872 $2,532,713 30.04% $2,509,640 29.7% $128,250 $128,250 $126,100 ($2,150) -1.68% ($2,150) -1.7% $266,800 $266,800 $249,300 ($17,500) -6.56% ($17,500) -6.6% $17,000 $17,656 $18,000 $344 1.95% $1,000 5.9% $25,165 $16,399 $18,115 $1,716 10.46% ($7,050) -28.0% $9,488,625 $9,452,664 $12,104,264 $2,651,600 28.05% $2,615,639 27.6% Personnel Requirements Regular Status Employees Human Resources Analyst Human Resources Manager Senior Administrative Technician Total, FY 2015-16 3.00 1.00 1.00 5.00 Administration Department FY 2016-17 4.00 1.00 1.00 6.00 Significant Budget Adjustments The Human Resources Operating Budget for FY 2016-17 is $12.1 million, a $2.6 million or 27.6% increase over last year. Outside of the changes in wages and benefits, discussed elsewhere, the main drivers for the change are the addition of a Training Coordinator (Human Resources Analyst) position and the budgeting of the additional $2.5 million to be paid towards the unfunded liability in retirement. 33 Information Technology OVERVIEW This Division supports all computer hardware, software, and telecommunications needs of the District and assists with improvement and automation of District business processes. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goal: Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Improved security of network infrastructure by implementing FireEye Cyber Security and Malware Detection, email scanning technology, endpoint protection and updates to internal security policies and procedures. Improved reliability by installing redundant infrastructure at the Walnut Creek Facility in the event of an outage at the Martinez Facility. Improved e-mail reliability and reduced number of outages to near zero. Replaced approximately 200 District PC's and eliminated unsupported Windows XP machines. Solidified system backup procedures to ensure that backups are performed on a regular basis with periodic testing. Implemented technology to manage tablet devices such as iPads for use with new Computerized Maintenance Management System, Source Control System, upcoming Timekeeping System and other applications. 34 Administration Department Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Strategy Initiative UM Attribute Goal 1 — Provide Exceptional Customer Service Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 5 — Maintain a Reliable Infrastructure Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Foster Customer Engagement and Awareness Improve Interdepartmental Collaboration Enhance Relationship with Employees and Bargaining Units Protect District Personnel and Assets From Threats and Emergencies Evaluate Business Processes and Optimize Business Operations Encourage the Review and Testing of Promising and Leading Technology Invest in business process changes and technologies to effectively increase access to District information and promote customer care, convenience, and self- service. Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Cultivate a positive work culture and promote teamwork. Enhance our capability to mitigate, prepare, respond, and recover from emergencies. Evaluate and implement appropriate improvements to security program to meet new or evolving threats. Perform business process mapping and re-engineering. Expand and improve the use of cost effective mobile computing and communication technologies. Customer Satisfaction Customer Satisfaction Employee and Leadership Development Employee and Leadership Development Enterprise Resiliency Enterprise Resiliency Operational Optimization Operational Optimization 35 Administration Department Budget Overview By Ex )ense Category Account Descri • tion Salaries &Wages Employee Benefits Utilities Repairs & Maintenance Outside Services Materials & Supplies Other Expenses FY 2015-16 Bud • et FY 2015-16 Projected FY 2016-17 Budget $1,386,996 $1,038,100 $1,393,793 $1,227,552 Budget to Projected Variance $355,693 Percent Variance Budget to Budget Variance $6,797 Percent Variance 0.5% $1,178,055 $1,195,703 $17,648 $0 ($31,849) -2.6% $82,000 $82,000 $95,040 $13,040 $0 $13,040 15.9% $461,500 $767,650 $306,150 $1 $308,400 67.2% $374,000 $400,000 $196,000 ($204,000) ($1) ($178,000) -47.6% 10.4% $459,250 $9,240 $15,200 $10,200 ($5,000) $0 $960 $39,565 $26,565 $42,565 $16,000 $1 $3,000 7.6% $3,578,603 $3,201,420 $3,700,951 $499,531 $1 $122,348 3.4% Personnel Requirements Regular Status Employee Information Technology Analyst Information Technology Manager Information Technology Supervisor Programmer Analyst Project Manager/Business Analyst System Administrator Technical Support Analyst Total Limited Duration Employees Computer Technician Summer Student Total FY 20 1.00 1.00 2.00 1.00 1.00 2.00 3.00 11.00 FY 2015-16 1.00 1.00 FY 2016-17 1.00 1.00 2.00 1.00 1.00 2.00 3.00 11.00 FY 2016-17 0.00 0.00 Significant Budget Adjustments The Information Technology Operating Budget for FY 2016-17 is $3.7 million, a $122,000 or 3.4% increase over last year. Outside of the changes in wages and benefits, discussed elsewhere, the main driver for the change are increased costs for Information Technology backup, ESRI, Cityworks and other various software maintenance contracts, and the transfer of Information Technology maintenance services that were previously in the Engineering budget. 36 Administration Department Purchasing and Vaterial Services OVERVIEW This Division provides the necessary materials, supplies, equipment, services and information to support District operations. The Division is responsible for contracting and procurement for all District departments (except construction contracts), ensuring compliance with applicable federal, state, and local regulations. The District's warehouse inventories, receives, and distributes supplies, materials and equipment to all departments in addition to inventory control analysis and surplus disposition. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goals: Goal 5 — Maintain a Reliable Infrastructure Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Updated prevailing wage contract language to be SB854 compliant and implemented Department of Industrial Relations (DIR) registration requirements for prevailing wage jobs. Continued inventory cycle count program and maintained a 97% accuracy rate. Successfully solicited and awarded high-level, service -based contracts. Updated contract, agreement, and purchase order terms and conditions and template format. Earned the Achievement of Excellence in Procurement Award for innovation, professionalism, productivity, e -procurement, and leadership attributes of the procurement organization for the fifth consecutive year. 37 1 Administration Department Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Strategy d Initiati 1 EUM Attribute Goal 1 — Provide Exceptional Customer Service Foster Customer Engagement and Awareness Improve Interdepartmental Collaboration Invest in business process changes and technologies to effectively increase access to District information and promote customer care, convenience, and self- service. Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Customer Satisfaction Customer Satisfaction Employee and Leadership Development Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Enhance Relationship with Employees and Bargaining Units Cultivate a positive work culture and promote teamwork. Employee and Leadership Development Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Evaluate Business Processes and Optimize Business Operations Perform business process Operational Optimization mapping and re-engineering. Budget Overview by Ex )ense Category Account Description Salaries &Wages Employee Benefits Repairs & Maintenance Professional & Legal Services Outside Services Materials & Supplies Other Expenses 38 FY 2015-16 Budget FY 2015-16 Projected $838,546 $810,900 $893,386 $23,000 $15,000 $29,000 $14,000 $856,037 $23,000 $15,000 FY 2016-17 Budget $857,600 $782,607 $23,000 $35,000 $6,089 $29,000 $14,000 $14,000 $25,900 $16,900 $21,900 Total $1,838,832 $1,741,926 $1,763,107 Budget to Projected Variance $46,700 ($73,430) $0 $20,000 $22,911 $0 $5,000 Percent Variance 5.8% -8.6% 0.0% 133.3% 376.3% 0.0% 29.6% $21,181 1.2% Budget to Budget Variance $19,054 ($1 10,779) $0 $20,000 Percent Variance 2.3% -12.4% 0.0% 133.3% $0 0.0% $0 0.0% ($4,000) -15.4% ($75,725) -4.1% Personnel Requirements egular Status Emplo Materials Services Coordinator Materials Services Supervisor Purchasing and Materials Manager Senior Buyer Senior Materials Coordinator Total Limited Duration Employees Warehouse Summer Student Total FY 2015-16 2.00 1.00 1.00 3.00 1.00 8.00 FY 2015-16 1.00 1.00 Administration Department FY 2016-17 2.00 1.00 1.00 3.00 1.00 8.00 FY 2016-17 1.00 1.00 Significant Budget Adjustments The Purchasing and Material Services Operating Budget for FY 2016-17 is $1.76 million, a $76,000 or 4% decrease over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, there were no significant budget changes. 39 Risk Vanagement OVERVIEW This Division protects the District from loss or damage to its personnel and assets. It manages Workers' Compensation, liability claims, security programs, insurance procurement, self-insurance funding, contract and insurance review, litigation support, and the District's Emergency Preparedness and Response Programs. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goals: Goal 3 — Be a Fiscally Sound and Effective Water Sector Utility Reduced the District's self-insured retention for liability losses by 50%. Goal 5 — Maintain a Reliable Infrastructure 40 Initiated a multi-year business continuity planning process. Acquired P25 -compliant radios to allow interoperable communications with other jurisdictions during emergencies. Updated the Emergency Operations Plan. 1M 4 Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Goal 1 — Provide Exceptional Customer Service Goal 3 — Be a Fiscally Sound and Effective Water Sector Utility Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 5 — Maintain a Reliable Infrastructure Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Strategy Improve Interdepartmental Collaboration Manage Costs Enhance Relationship with Employees and Bargaining Units Manage Assets Optimally Throughout Their Lifecycle Protect District Personnel and Assets From Threats and Emergencies Evaluate Business Processes and Optimize Business Operations MED • Foster employees' understanding of District operations and their role in our success. Administration Department EUM Attribu Customer Satisfaction Increase internal partnerships. Employee and Leadership Development Evaluate and implement risk management practices to minimize loss. Cultivate a positive work culture and promote teamwork. Update the Consequence of Failure Matrices. Enhance our capability to mitigate, prepare, respond, and recover from emergencies. Evaluate and implement appropriate improvements to our security program to meet new or evolving threats. Enterprise Resiliency Employee and Leadership Development Enterprise Resiliency Enterprise Resiliency Enterprise Resiliency Perform business process Operational Optimization mapping and re-engineering. 41 i Administration Department Budget Overview by Ex )ense Category Account Description Salaries &Wages Employee Benefits Repairs & Maintenance Professional & Legal Services Outside Services Self -Insurance Expense Materials & Supplies FY 2015-16 Bud • et $226,657 $251,335 FY 2015-16 Projected $224,400 $241,032 $27,500 $32,000 $61,800 $55,000 FY 2016-17 Budget $238,944 $228,392 $35,000 $61,800 Budget to Projected Variance $14,544 ($12,640) Percent Variance 6.5% -5.2% Budget to Budget Variance $12,287 ($22,943) $3,000 9.4% $7,500 $6,800 12.4% $0 Percent Variance 5.4% -9.1% 27.3% 0.0% $433,000 $433,000 $408,000 ($25,000) -5.8% ($25,000) -5.8% - 38.7% $1,500,000 $218,000 $1,500,000 $218,000 $920,000 $103,000 ($580,000) ($1 15,000) - 38.7% - 52.8% ($580,000) ($115,000) - 52.8% Other Expenses $17,650 $17,650 $13,650 ($4,000) -22.7% ($4,000) -22.7% Total $2,735,942 $2,721,082 $2,008,786 ($712,296) -26.2% ($727,156) -26.6% Personnel Requirements egular Status Employee Risk Management Administrator Risk Management Technician Limited Duration Employees Clerical Summer Student Total Total FY 20 1.00 1.00 2.00 FY 2015-16 0.00 0.00 FY 2016-17 1.00 1.00 2.00 FY 2016-17 1.00 1.00 Significant Budget Adjustment The Risk Management Operating Budget for FY 2016-17 is $2.0 million, a $727,000 or 27% decrease over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, the main drivers for the change are a reduction in the self-insurance expense and safety supplies. 42 Administration Department O ce ofThe General IVanacer and O ce of the Secretary of the District OFFICE OF THE GENERAL MANAGER - OVERVIEW The primary mission of the Office of the General Manager is to work with the Board of Directors to establish policies and procedures and the overall goals and Strategic Plan of the District. The General Manager reports directly to the Board of Directors and provides general oversight to all District operations, interagency relations, legislative activities, communications, and the strategic plan. Office of the General Manager - Fiscal Year 2015-16 Accomplishments and Fiscal Year 2016-17 Strategic Initiatives The General Manager oversees all operations of the District. This office provides direction, support and, resources to the departments to effectively and efficiently accomplish the Mission, Vision and Goals of the District. The accomplishments and FY 2016-17 Strategic Initiatives for the District are embodied in each of the individual divisions and programs. Highlights of the District's accomplishments are included in the General Manager's message at the beginning of the Budget Book OFFICE OF THE SECRETARY OF THE DISTRICT - OVERVIEW The Office of the Secretary of the District provides administrative support to the five elected Board of Directors and manages the Board of Directors and Committee meeting process, including the preparation and distribution of agendas and minutes, and the publication of notices of public hearings. It coordinates compliance with Fair Political Practices Commission Regulations and the Brown Act, receives legal claims against the District, and coordinates ethics training and Brown Act training for Board of Directors and staff. It also manages the District's Records Management Program and responds to Public Records Act requests. 43 1M Administration Department Office of the Secretary of the District - Fiscal Year 2015-16 Accomplishments The Office of the Secretary of the District had several accomplishments as it related to the following District Goals: Goal Goal 1 — Provide Exceptional Customer Service Goal 6 — Embrace Technology, Innovation and Environmental Sustainability 44 cco Coordinated meetings for Board of Directors liaisons with representative cities and agencies. Established videotaping of Board of Directors meetings available to the public on the District's website. Continued transition to electronic delivery of agenda packets and other materials to Board of Directors. Produced a "Guide to the Board Meeting Process"for use by staff. Improved the Board and Committee meeting process by improving the Position Paper template, simplifying the 30 -Day Schedule, and standardizing due dates for Committee agenda material. Awarded Transparency Certificate of Excellence from California Special Districts Association. Coordinated the celebration for the renaming of the Environmental Laboratory to the Dr. Mario M. Menesini Environmental Laboratory. Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal 1 Strategy Administration Department Goal 1 — Provide Exceptional Customer Service Foster Customer Engagement and Awareness Improve Interdepartmental Collaboration Invest in business process changes and technologies to effectively increase access to District information and promote customer care, convenience, and self- service. Increase customer understanding and support for key issues facing the District. Provide high quality customer service. Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Customer Satisfaction Stakeholder Understanding and Support Customer Satisfaction Customer Satisfaction Employee and Leadership Development Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Enhance Relationship with Employees and Bargaining Units Cultivate a positive work culture and promote teamwork. Employee and Leadership Development Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Evaluate Business Processes and Optimize Business Operations Perform business process Operational Optimization mapping and re-engineering. Budget Overview By Ex )ense Category Account Descri • tion Salaries & Wages Employee Benefits Director Fees & Expenses Repairs & Maintenance Professional & Legal Services Outside Services Materials & Supplies Other Expenses Total FY 2015-16 Budget FY 2015-16 Projected FY 2016-17 Budget $1,417,424 $1,490,900 $1,502,326 $1,059,931 $132,177 $10,800 $189,400 $231,000 $20,150 $124,305 $3,185,187 $1,463,781 $159,916 $10,800 $145,000 $235,000 $20,150 $1 14,305 $3,639,852 $967,263 $168,555 $10,800 $145,000 Budget to Projected Variance $11,426 ($496,518) Percent Variance 0.8% -33.9% $8,639 5.4% $0 0.0% $0 0.0% $246,000 $11,000 4.7% $20,150 $559,905 $3,619,999 $0 0.0% $445,600 ($19,853) 389.8% -0.6% Budget to Budget Variance $84,902 ($92,668) $36,378 $0 ($44,400) $15,000 6.5% Percent Variance 6.0% -8.7% 27.5% 0.0% -23.4% $0 0.0% $435,600 350.4% $434,812 13.7% 45 Administration Department Personnel Requirements Administrative Services Supervisor Assistant to the Secretary of the District Director of Budget and Finance Executive Assistant General Manager Secretary of the District Senior Administrative Technician Total Limited Duration Employees Clerical Summer Student Total FY 2015-16 1.00 1.00 1.00 1.00 1.00 1.00 4.00 10.00 FY 2015-16 1.00 1.00 FY 2016-17 1.00 1.00 1.00 1.00 1.00 1.00 4.00 10.00 FY 2016-17 1.00 1.00 Significant Budget Adjustments The Office of the General Manager/Office of the Secretary of the District Operating Budget for FY 2016-17 is $3.6 million, a $435,000 or 14% increase over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, the main driver for the change is the Fall 2016 Board Election. 46 Engineering and Technical Services Department The Engineering and Technical Services Department consists of three Divisions that report to the Director of Engineering and Technical Services. The primary functions of the Engineering and Technical Services Department are the planning, design, and construction or rehabilitation of treatment plant, collection system, and recycled water infrastructure; development services, including right of way, property management, development inspection, and mainline plan review; environmental compliance monitoring of industrial business; regulatory compliance and permit monitoring; laboratory analysis and management of the Household Hazardous Waste Facility. The Divisions that comprise this Department include: - Capital Projects - Environmental and Regulatory Compliance - Planning and Development Services 47 Engineering and Technical Services Department Capital Projects Division OVERVIEW This Division conducts and manages the design, public bidding, and construction of projects to improve or rehabilitate our treatment plant, pumping stations, pipelines and recycled water system. In addition, this Division manages general facilities modifications, safety improvements, and recycled water infrastructure projects. This Division also oversees the computer aided design (CAD) and survey groups and works as one of the primary engineering resources at the District. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goals: Goal Goal 3 — Be a Fiscally Sound and Effective Water Sector Utility Goal 5 — Maintain a Reliable Infrastructure 48 Accomplishment Streamlined and evaluated the elimination of the Capital Improvement Budget allocation process. Replaced approximately 3.7 miles of sanitary sewers including renovating 3,100 feet of 42 -inch RCP sewer in Martinez, and various 6 -inch clay sewer mains with 8 -inch sewers in Lafayette, Walnut Creek, and Martinez. Designed and bid three critical treatment plant projects (Sub 16 Switchgear; Pump and Blower Building Seismic; and Headwork's Screening Project). Awarded the construction contract for the Pleasant Hill Grayson Creek Trunk Sewer Project (total project cost of $13.7 million). This project will help relieve the capacity limited sewers in Pleasant Hill and allow for future renovations and coordination with the anticipated paving program in Pleasant Hill, specifically Pleasant Hill Road. Completed the Caustic Injection Project and other improvements at the treatment plant to comply with the upcoming AB 197 Air Regulations. Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Strategy Engineering and Technical Services Department Initiative EUM Attribute Goal 1 — Provide Exceptional Customer Service Foster Customer Engagement and Awareness Improve Interdepartmental Collaboration Provide high quality customer service. Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Customer Satisfaction Customer Satisfaction Employee and Leadership Development Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Enhance Relationship with Employees and Bargaining Units Cultivate a positive work culture and promote teamwork. Employee and Leadership Development Goal 5 — Maintain a Reliable Infrastructure Manage Assets Optimally Throughout Their Lifecycle Facilitate Long -Term Capital Renewal and Replacement Implement Board approved recommendations from the Comprehensive Wastewater Master Plan and Condition Assessment. Integrate the data from the Asset Management Program into the analysis of long term Capital Improvement needs. Implement business case evaluations, including life- cycle cost, into proposals for new CIP projects to determine most effective projects and solutions. Infrastructure Strategy and Performance Infrastructure Strategy and Performance Infrastructure Strategy and Performance Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Evaluate Business Processes and Optimize Business Operations Perform business process Operational Optimization mapping and re-engineering. 49 Engineering and Technical Services Department Budget Overview By Ex )ense Category Account Description Salaries &Wages Employee Benefits Utilities Repairs & Maintenance Professional & Legal Services FY 2015-16 Budget FY 2015-16 Projected FY 2016-17 Budget $1,756,764 $1,771,000 $1,879,280 ($925,002) ($125,899) ($887,526) Budget to Projected Variance $108,280 ($761,627) Percent Variance 6.1% 605.0% Budget to Budget Variance $122,516 $37,476 $23,600 $24,000 $24,000 $0 0.0% $400 $29,350 $29,350 $19,500 ($9,850) -33.6% ($9,850) $100 $100 $0 ($100) -100.0% ($100) Outside Services $128,325 $130,325 $73,225 ($57,100) -43.8% ($55,100) -42.9% Percent Variance 7.0% -100.0% Materials & Supplies $31,880 $35,480 $32,300 ($3,180) -9.0% $420 1.3% Other Expenses $76,559 $77,294 $59,125 ($18,169) -23.5% ($17,434) -22.8% Total $1,121,576 $1,941,650 $1,199,904 ($741,746) -38.2% $78,328 7.0% Personnel Requirements Regular Status Employees Administrative Services Supervisor Administrative Assistant Assistant Engineer Assistant Land Surveyor Associate Engineer Capital Projects Division Manager Engineering Assistant II Engineering Technician I/II Engineering Technician III Land Surveyor Senior Engineer Senior Engineering Assistant Total Limited Duration Employees Engineering Assistant Summer Student Co-op FY 2015-2016 0 2.00 8.00 2.00 7.00 1.00 1.00 1.00 3.00 1.00 2.00 1.00 29.00 FY 2015-2016 4.00 3.00 Total i 7.00 FY 2016-2017 1.00 1.00 8.00 2.00 7.00 1.00 1.00 1.00 3.00 1.00 2.00 1.00 29.00 FY 2016-2017 3.00 3.00 6.00 Significant Budget Adjustments The Capital Projects Operating Budget for FY 2016-17 is $1.2 million, a $78,000 or 7% increase over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, the increased costs were mitigated by the transfer of software maintenance to the Information Technology Division and the transfer of cathodic protection contract work to the Plant Maintenance Division. 50 Engineering and Technical Services Department Environmental and Regulatory Compliance Division OVERVIEW This Division oversees and ensures that District activities and operations are in compliance with applicable federal, state, and local environmental laws, regulations, and policies. The Division ensures the District's permitted businesses and industrial customers comply with all applicable requirements to protect the environment as well as the District's assets; manage the Household Hazardous Waste Collection Program and residential recycled water fill station; receive and interpret laboratory data and apply results to regulatory requirements, ensures the treatment plant's effluent meets all water quality standards; evaluates treatment plant operations to ensure compliance with all air pollution control standards; evaluates the effectiveness of regulatory compliance programs; develops and implements new programs as mandated by legislation and/or policy; monitors and analyzes legislation and new regulations that impact regulatory compliance; and represents the District before boards, political bodies, committees, and the general public. Fiscal Year 2015-2016 Accomplishments This Division had several accomplishments related to the following District Goals: Goal Goal 2 - Meet All Regulatory Requirements Goal 6 - Embrace Technology, Innovation and Environmental Sustainability Accomplishment Prepared all NPDES required reports to the Regional Water Quality Control Board (individual NPDES Permit, Nutrient Watershed Permit). Prepared all required reports to satisfy Title V Permit requirements. Prepared the 2015 greenhouse gas inventory to the California Air Resource Board. Prepared the Recycled Water Quality and Distribution Annual Report to the Regional Water Quality Control Board. Developed a permit matrix of all regulatory permits within the District. Completed all required laboratory monitoring and analyses. Served 932 more vehicles than the same period last year (July - March) at the Recycled Water Fill Station. 24,905 visits to the Household Hazardous Waste Facility by residents, small businesses, reuse customers, and retail partners. 51 Engineering and Technical Services Department Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Strategy Initiative EUM Attribute Goal 1 — Provide Exceptional Customer Service Improve Interdepartmental Collaboration Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Customer Satisfaction Employee and Leadership Development Goal 2 — Strive to Meet Regulatory Requirements Strive to Achieve 100% Permit Compliance in Air, Water, Land and Other Regulations Renew treatment plant NPDES Permit. Meet existing regulations and plan for future regulations. Foster relationships with regulatory agencies. Monitor and track proposed and pending legislation/ regulatory changes that may impact District operations. Actively manage GHG emissions in the most cost effective and responsible manner. Product Quality Product Quality Stakeholder Understanding and Support Stakeholder Understanding and Support Community Sustainability Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Enhance Relationship with Employees and Bargaining Units Cultivate a positive work culture and promote teamwork. Employee and Leadership Development Goal 6 — Embrace Technology, Innovation and Environmental Sustainability 52 Evaluate Business Processes and Optimize Business Operations Perform business process Operational Optimization mapping and re-engineering. Budget Overview By Ex Account Description Salaries &Wages Employee Benefits Utilities Repairs & Maintenance Hauling & Disposal Professional & Legal Services Outside Services Materials & Supplies Other Expenses FY 2015-16 Budget $3,299,621 $3,126,005 $13,500 $97,000 $472,700 $6,000 $878,700 $290,500 )ense Category FY 2015-16 Projected $3,302,800 $3,085,056 $14,000 $77,632 $422,700 $5,500 FY 2016-17 Budget $3,412,647 $2,672,956 Budget to Projected Variance $109,847 Engineering and Technical Services Department Percent Variance Budget to Budget Variance Percent Variance 3.3% $113,026 3.4% ($412,100) -13.4% ($453,049) -14.5% $32,700 $18,700 133.6% $19,200 142.2% 9.8% $106,500 $423,000 $6,000 $28,868 $300 $500 37.2% $9,500 0.1% ($49,700) 9.1% $0 - 10.5% 0.0% $765,675 $859,200 $93,525 12.2% ($19,500) -2.2% $277,800 $286,700 $8,900 $869,141 $845,602 $443,639 ($401,963) Total $9,053,167 $8,796,765 $8,243,342 ($553,423) 3.2% ($3,800) -47.5% ($425,502) -6.3% ($809,825) -1.3% - 49.0% -9.0% 53 Engineering and Technical Services Department Personnel Requirements Regular Status Employees Administrative Assistant Assistant Engineer Associate Engineer Chemist I/II Chemist III 1.00 Environmental and Regulatory Compliance Division Manager 1.00 Environmental Compliance Inspector I/II 6.00 Environmental Compliance Superintendent Household Hazardous Waste Supervisor Household Hazardous Waste Technician I/II Laboratory Superintendent Senior Chemist Senior Engineer Senior Environmental Compliance Inspector Senior Household Hazardous Waste Technician FY 2015-16 1.00 1.00 2.00 5.00 Total 1.00 1.00 3.00 1.00 1.00 1.00 2.00 2.00 29.00 Limited Duration Employees FY 2015-16 Laboratory Assistant Summer Student Co-op Total 2.00 2.00 4.00 FY 2016-17 1.00 1.00 2.00 5.00 1.00 1.00 6.00 1.00 1.00 3.00 1.00 1.00 1.00 2.00 2.00 29.00 FY 2016-17 1.00 3.00 4.00 Significant Budget Adjustments The Environmental and Regulatory Compliance Operating Budget for FY 2016-17 is $8.2 million, a $809,000 or 9% decrease over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, the main drivers for the change are the transfer of public agency fees to the Plant Operations Division, and the transfer of recycled water costs to the Recycled Water Program. 54 Engineering and Technical Services Department Planning and Development Services Division OVERVIEW This Division provides planning and applied research for the District's collection system, treatment plant, and recycled water facilities and programs; oversees asset management, geographic information systems (GIS) and computerized maintenance management systems (CMMS); financial planning for rates for connection fees, permits and sewer service charges, and development services, including right of way, property management, development inspection, permit counter operations, and mainline plan review. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goals: Goal Alignment Goal 2 — Meet All Regulatory Requirements Goal 5 — Maintain a Reliable Infrastructure Accomplishment The Comprehensive Wastewater Master Plan for the collection system and the treatment plant is being implemented on schedule and within budget. Initiated implementation of Infoworks® hydrodynamic model and second phase of the flow calibration by installing 72 meters in the collection system to collect wet weather data. Began implementation of a new CMMS platform called CityWorks. Also updated the GIS to a new ESRI platform. Participated in Lower Walnut Creek Stakeholders Advisory Group for long- term planning on the outfall property. Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Conducted several pilot studies and applied research such as: Zeolite Anammox, centrifuge testing, caustic soda addition to the wet scrubber, and sludge screening press. Implemented construction of the Solar Regional Project. Three sites are being implemented at the District using PPA. Obtained the Land Use Permit for the AgLantis sustainable farm on 14.8 acres of District property. 55 EUM Attribute Engineering and Technical Services Department Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Strategy Initiative Goal 1 — Provide Exceptional Customer Service Invest in Business Process Changes and Technologies to Effectively Increase Access to District Information and Promote Customer Care, Convenience and Self -Service. Improve Interdepartmental Collaboration Goal 3 — Be a Fiscally Sound Conduct Long Range and Effective Water Sector Financial Planning Utility Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 5 — Maintain a Reliable Infrastructure Goal 6 — Embrace Technology, Innovation and Environmental Sustainability 56 Enhance Relationship with Employees and Bargaining Units Facilitate Long -Term Capital Renewal and Replacement Evaluate Business Processes and Optimize Business Operations Reduce reliance on Non -Renewable Energy Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Ensure rate structure is consistent with cost of service principles. Develop alternatives for new revenues and funding sources. Review funding alternatives. Cultivate a positive work culture and promote teamwork. Integrate the data from the Asset Management Program into the analysis of long term Capital Improvement needs. Implement business case evaluations, including life- cycle cost, into proposals for new CIP projects to determine most effective projects and solutions. Perform business process mapping and re-engineering. Explore opportunities for self -generation, conservation and efficiency based on the approved Comprehensive Wastewater Master Plan. Customer Satisfaction Customer Satisfaction Customer Satisfaction Employee and Leadership Development Financial Viability Financial Viability Financial Viability Employee and Leadership Development Infrastructure Strategy and Performance Infrastructure Strategy and Performance Operational Optimization Community Sustainability Budget Overview By Ex )ense Category Account Description Salaries &Wages Employee Benefits Utilities Repairs & Maintenance Professional & Legal Services Outside Services Materials & Supplies Other Expenses Total FY 2015-16 Budget FY 2015-16 Projected FY 2016-17 Budget $3,393,452 $3,242,200 $3,685,044 $1,949,977 $1,956,607 $1,770,926 $160,700 $140,700 $120,400 $59,400 $123,000 $616,000 $37,950 $153,600 $6,494,079 $42,000 $112,000 $456,000 $579,100 $34,300 $59,400 $1 15,000 $37,550 $93,068 $88,474 $6,076,875 $6,455,894 Budget to Projected Variance $442,844 ($185,681) Engineering and Technical Services Department Percent Variance Budget to Budget Variance Percent Variance 13.7% $291,592 8.6% -9.5% ($179,051) -9.2% ($20,300) -14.4% ($40,300) -25.1% 0.0% $17,400 $3,000 $123,100 $3,250 ($4,594) $379,019 41.4% $0 2.7% ($8,000) 27.0% ($36,900) -6.0% ($400) -6.5% 9.5% -4.9% ($65,126) -42.4% 6.2% ($38,185) -0.6% 57 Engineering and Technical Services Department Personnel Requirements Regular Status Employees Administrative Assistant Assistant Engineer Associate Engineer Construction Inspector Development Services Supervisor Director of Engineering and Technical Services Engineering Assistant III Engineering Technician I/II GIS Analyst GIS/CMMS Administrator Maintenance Planner Planning and Development Services Division Manager Program Manager Senior Engineer Senior Right -of -Way Agent FY 2015-16 Total 1.00 2.00 4.00 4.00 2.00 1.00 5.00 4.00 2.00 1.00 1.00 1.00 0.00 4.00 2.00 34.00 Limited Duration Employees FY 2015-16 Engineering Assistant Summer Student Co-op Total 3.00 3.00 6.00 FY 2016-17 1.00 2.00 4.00 4.00 2.00 1.00 5.00 4.00 2.00 1.00 1.00 1.00 1.0 4.00 2.00 35.00 FY 2016-17 6.00 4.00 10.00 Significant Budget Adjustments The Planning and Development Services Operating Budget for FY 2016-17 is $6.5 million, a $38,000 or 0.6% decrease over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, wages increased by the addition of a Program Manager position. Increased costs were mitigated by the transfer of some costs to the Recycled Water Program and a reduction in utility costs. 58 Operations Department The Operations Department consists of three Divisions, the District Safety Program, and the Recycled Water Program that report to the Deputy General Manager. The primary function of the Operations Department is to collect, treat, and dispose of wastewater in compliance with regulatory requirements. This includes operations and maintenance of pipelines, pumping stations and treatment facilities; oversight of power generation operations; fleet maintenance; and managing computerized control equipment and systems. The Divisions and Programs that comprise this Department include: - Collection System Operations - Plant Maintenance - Plant Operations - District Safety Program - Recycled Water Program 59 Operations Department Collection System Operations Division OVERVIEW This Division is responsible for the cleaning, maintaining and repairing of over 1,500 miles of collection sewers, trunk sewers and forcemains in the District's vast collection system, as well as maintaining the recycled water distribution system. The Division is also responsible for the maintenance of all District vehicles. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goals: Goal Goal 1 - Provide Exceptional Customer Service Goal 2 - Strive to Meet Regulatory Requirements Goal 5 - Maintain a Reliable Infrastructure 60 Accomplishment - Responded to over 1,000 customer service phone calls. - Achieved an average customer service satisfaction rating of 3.81 out of 4.0. - Average response to all emergency service calls was 36.5 minutes. - Reduced sanitary sewer overflows to 2.83 per 100 miles and had no pumping station or capacity related overflows. - Cleaned 850 miles of sanitary sewers. - Televised 180 miles of sanitary sewers. - Completed over 975 services on District vehicles and equipment; on schedule 100% of time. - Completed over 20,900 cleaning schedules and work orders; completed on schedule 99% of the time. Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Goal 1 — Provide Exceptional Customer Service Goal 2 — Strive to Meet Regulatory Requirements Goal 3 — Be a Fiscally Sound and Effective Water Sector Utility Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 5 — Maintain a Reliable Infrastructure Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Strategy Foster Customer Engagement and Awareness Improve Interdepartmental Collaboration Strive to Minimize the Number of SSOs Manage Costs Enhance Relationship with Employees and Bargaining Units Manage Assets Optimally Throughout Their Lifecycle Evaluate Business Processes and Optimize Business Operations Initiative Provide high quality customer service. Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Complete the collection system scheduled maintenance on time and optimize cleaning schedules to improve efficiencies. Continue the pipeline condition assessment and cleaning quality assurance program using the system wide CCTV program. Perform optimization studies of treatment plant and field operations to reduce costs. Cultivate a positive work culture and promote teamwork. Manage and maintain current equipment and vehicle fleet to provide maximum value. Perform business process mapping and re-engineering. Operations Department EUM Attribute Customer Satisfaction Customer Satisfaction Employee and Leadership Development Infrastructure Strategy and Performance Infrastructure Strategy and Performance Operational Optimization Employee and Leadership Development Infrastructure Strategy and Performance Operational Optimization 61 Operations Department Budget Overview By Ex Sense Category Account Description Salaries &Wages Employee Benefits Utilities Repairs & Maintenance Hauling & Disposal Professional & Legal Services Outside Services Materials & Supplies Other Expenses Total $14,996,254 $14,383,123 $14,472,053 $88,930 0.6% ($524,201) 62 FY 2015-16 Budget FY 2015-16 Projected $6,014,774 $5,941,900 $5,996,914 $6,019,607 $137,400 $137,400 $1,721,250 $1,257,000 $122,800 $121,500 $5,000 $5,000 $82,940 $66,120 $767,500 $719,300 $147,676 $115,296 FY 2016-17 Budget $6,107,988 $5,433,375 $139,400 $1,631,502 $131,000 $5,000 $106,700 $774,150 $142,938 Budget to Projected Variance Percent Variance Budget to Budget Variance $166,088 ($586,232) $2,000 $374,502 2.8% -9.7% 1.5% 29.8% $93,214 ($563,539) $2,000 ($89,748) $9,500 7.8% $8,200 $0 0.0% $0 $40,580 61.4% $23,760 $54,850 7.6% $6,650 $27,642 24.0% ($4,738) Percent Variance 1.6% - 9.4% 1.5% - 5.2% 6.7% 0.0% 28.7% 0.9% - 3.2% -3.5% Personnel Requirements Regular Status Employees Administrative Assistant Administrative Services Supervisor Administrative Technician Collection System Maintenance Scheduler Collection System Operations Division Manager Construction Equipment Operator Field Operations Superintendent Maintenance Crew Leader Maintenance Crew Member I/II Maintenance Supervisor Safety Specialist Senior Engineer Utility Worker Vehicle and Equipment Mechanic Vehicle Maintenance and Equipment Maintenance Supervisor Total FY 2015-16 1.00 1.00 2.00 1.00 1.00 3.00 1.00 18.00 17.00 4.00 1.00 1.00 2.00 3.00 1.00 57.00 Limited Duration Employees FY 2015-16 Laborer Summer Student Clerical Summer Student 3.00 1.00 Operations Department FY 2016-17 1.00 1.00 2.00 1.00 1.00 2.00 1.00 18.00 18.00 4.00 0.00 1.00 2.00 3.00 1.00 56.00 FY 2016-17 Total 4.00 3.00 1.00 4.00 Significant Budget Adjustments The Collection System Operations Operating Budget for FY 2016-17 is $14.5 million, a $524,000 or 3.5% decrease over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, increases in wages were offset by a recent reorganization in the staffing for the Vehicle and Equipment Shop. In FY 2015-16, Field Superintendent position and a Vehicle Service Worker position were deleted and a Vehicle and Equipment Mechanic and Maintenance Crew Leader were added, which resulted in a cost savings. A Safety Specialist position was also transferred to the Safety Section. Other main drivers for the change are the addition of Automatic Vehicle Location (AVL) for all District vehicles so that they can respond to emergencies in a faster and more efficient manner, the rebuilding of two rodder assemblies, and the transfer of some costs to the Recycled Water Program. 63 Operations Department Plant Vaintenance Division OVERVIEW This Division is responsible for maintaining all mechanical, electrical, and instrumentation equipment and systems for the treatment plant, laboratory and 19 pumping stations as well as all buildings and grounds at the Martinez campus. The Maintenance Division also consists of a reliability engineering group which provides technical support for the Division's maintenance planning and manages our Preventative Maintenance Program. The pumping station group operates and maintains the 19 pumping stations. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goals: Goal Goal 2 - Strive to Meet Regulatory Requirements Goal 5 - Maintain a Reliable Infrastructure 64 Accomplishment Maintained all equipment and systems to achieve the National Association of Clean Water Agencies (NACWA) Peak Performance Platinum Award. Continued to make refinements to existing CMMS asset register and Preventative Maintenance Program in preparation to migrating to new Cityworks maintenance management system and to support the District's asset management goals. 97% of preventative maintenance work orders completed on schedule. Continued expansion of the Condition Based Predictive Maintenance Program. Began training staff on Reliability Centered Maintenance. Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Goal 1 — Provide Exceptional Customer Service Goal 2 — Strive to Meet Regulatory Requirements Goal 3 — Be a Fiscally Sound And Effective Water Sector Utility Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 5 — Maintain a Reliable Infrastructure Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Strategy Improve Interdepartmental Collaboration Strive to Achieve 100% Permit Compliance in Air, Water, Land and Other Regulations Manage Costs Enhance Relationship with Employees and Bargaining Units Manage Assets Optimally Throughout Their Lifecycle Evaluate Business Processes and Optimize Business Operations Initiative Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Actively manage GHG in the most cost effective and responsible manner. Perform optimization studies of treatment plant and field operations to reduce costs. Cultivate a positive work culture and promote teamwork. Implement Board approved recommendations of the Wastewater Master Plan and Condition Assessment. Implement the Reliability Centered Maintenance Program. Perform business process mapping and re-engineering. Operations Department EUM Attribute Customer Satisfaction Employee and Leadership Development Community Sustainability Operational Optimization Employee and Leadership Development Infrastructure Strategy and Performance Infrastructure Strategy and Performance Operational Optimization 65 Operations Department Budget Overview By Ex Sense Category Account Description Salaries &Wages Employee Benefits Chemicals Utilities Repairs & Maintenance Hauling & Disposal Outside Services Materials & Supplies Other Expenses 66 FY 2015-16 Budget FY 2015-16 Projected FY 2016-17 Budget $4,948,847 $4,980,518 $5,259,306 $4,684,651 $4,472,912 $4,355,893 Budget to Projected Variance $278,788 ($117,019) Percent Variance 5.6% -2.6% Budget to Budget Variance $310,459 ($328,758) Percent Variance 6.3% -7.0% $430,000 $430,000 $430,000 $0 0.0% $0 0.0% $517,350 $518,550 $518,550 $0 0.0% $1,200 0.2% $2,806,950 $2,834,950 $138,800 $138,800 $2,416,300 $138,800 ($418,650) -14.8% ($390,650) $0 0.0% $0 -13.9% 0.0% $167,100 $209,100 $237,650 $28,550 13.7% $70,550 42.2% 0.9% $136,163 $124,523 $140,001 $15,478 12.4% $3,838 2.8% $534,200 $717,300 $539,200 ($178,100) -24.8% $5,000 Total $14,364,061 $14,426,653 $14,035,700 ($390,953) -2.7% ($328,361) -2.3% Personnel Requirements Regular Status Employees Assistant Engineer Buildings and Grounds Supervisor Electrical Shop Supervisor Electrical Technician Instrument Shop Supervisor Instrument Technician Machinist Maintenance Crew Leader Maintenance Planner Maintenance Technician 1/II Mechanical Maintenance Technician III, Mechanical 7.00 Mechanical Supervisor 2.00 Painter 1.00 FY 2015-16 1.00 1.00 1.00 4.00 1.00 3.00 2.00 1.00 2.00 2.00 Plant Maintenance Division Manager Plant Maintenance Superintendent Pumping Stations Operator I/11 Pumping Stations Operator III Pumping Stations Supervisor Senior Engineer Utility Worker 1.00 1.00 4.00 2.00 1.00 1.00 7.00 Operations Department FY 2016-17 1.00 1.00 1.00 4.00 1.00 3.00 2.00 1.00 3.00 2.00 7.00 2.00 1.00 1.00 1.00 4.00 2.00 1.00 1.00 7.00 Total 45.00 46.00 Limited Duration Employees FY 2015-16 Laborer Summer Student Engineering Assistant Summer Student Co-op Total 9.00 2.00 1.00 12.00 FY 2016-17 10.00 1.00 1.00 12.00 Significant Budget Adjustments The Plant Maintenance Operating Budget for FY 2016-17 is $14 million, a $328,00 or 2.3% decrease over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, wages increased due to the addition of a Maintenance Planner and the addition of standby pay for the Electrical and Instrumentation Shops. These increases were offset by lower repair costs due to the completion of the cogeneration rebuild included in the FY 2015-16 Budget. 67 Operations Department Plant Operations Division OVERVIEW This Division operates and maintains the District's main treatment plant in Martinez. The treatment plant has a permitted capacity of 53.8 million gallons per day (mgd) and treats an average of 32.3 mgd. The treatment plant also produces 2.5 mgd of recycled water. This Division's budget also includes the administrative services for the Plant Operations and Plant Maintenance Divisions. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goals: Goa I Goal 2 - Meet All Regulatory Requirements Goal 6 - Embrace Technology, Innovation and Environmental Sustainability 68 Accomplishment The treatment plant was recognized by the National Association of Clean Water Agencies (NACWA) for Peak Performance and was awarded the Platinum Award for the 17th consecutive year for full compliance with all federal, state and regional water quality standards. The treatment plant met all Clean Air Act requirements. The treatment plant met all Recycled Water Title 22 Regulations. Assisted with preparations and testing for 129 Sewage Sludge Incinerator Regulations. Replaced and upgraded treatment plant control system historian server. Implemented complete backup capability for all treatment plant control system servers. Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Goal 1 — Provide Exceptional Customer Service Goal 2 — Strive To Meet Regulatory Requirements Goal 3 — Be a Fiscally Sound and Effective Water Sector Utility Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Strategy Improve Interdepartmental Collaboration Strive to Achieve 100% Permit Compliance in Air, Water, Land and Other Regulations Manage Costs Enhance Relationship with Employees and Bargaining Units Evaluate Business Processes and Optimize Business Operations Initiative Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Renew treatment plant NPDES Permit. Meet existing and known foreseeable future requirements for regulatory compliance. Actively manage GHG emissions in the most cost effective and responsible manner. Perform optimization studies of treatment plant and field operations to reduce costs. Cultivate a positive work culture and promote teamwork. Perform business process mapping and re-engineering. EUM Attribute Customer Satisfaction Employee and Leadership Development Product Quality Product Quality Community Sustainability Operational Optimization Employee and Leadership Development Operational Optimization 69 Operations Department Budget Overview By Ex Sense Category Account Description Salaries &Wages Employee Benefits Chemicals Utilities Repairs & Maintenance Hauling & Disposal Professional & Legal Services FY 2015-16 Budget FY 2015-16 Projected FY 2016-17 Budget $5,067,083 $5,202,600 $5,161,486 $4,628,256 $4,724,207 $4,001,927 Budget to Projected Variance ($41,114) ($722,280) Percent Variance -0.8% -15.3% Budget to Budget Variance $94,403 ($626,329) Percent Variance 1.9% - 13.5% $1,225,000 $1,048,000 $1,406,000 $358,000 34.2% $181,000 14.8% $3,845,700 $3,175,700 $3,210,700 $35,000 1.1% ($635,000) -16.5% $56,200 $43,700 $50,200 $6,500 14.9% ($6,000) $254,000 $211,000 $238,000 $27,000 12.8% ($16,000) $4,000 $4,000 $4,000 $0 0.0% $0 Outside Services $44,500 $21,000 $74,000 $53,000 252.4% $29,500 66.3% $156,900 $122,150 $152,900 $30,750 25.2% ($4,000) - 10.7% - 6.3% 0.0% Materials & Supplies - 2.6% Other Expenses $75,617 $47,296 $560,632 $513,336 1085.4% $485,015 641.4% Total $15,357,256 $14,599,653 $14,859,845 $260,192 1.8% ($497,411) -3.2% 70 Personnel Requirements Regular Status Employees Administrative Assistant Administrative Services Supervisor Associate Control Systems Engineer Control Systems Technician Deputy General Manager Plant Operations Division Manager Plant Operations Superintendent Plant Operations Training Coordinator Plant Operator I/II Plant Operator III Senior Engineer Senior Plant Operator Shift Supervisor Limited Duration Employees FY 2015-16 Total 2.00 1.00 2.00 1.00 1.00 Operations Department FY 2016-17 2.00 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 6.00 1.00 13.00 7.00 39.00 FY 2015-16 Clerical Summer Student Total 1.00 1.00 1.00 1.00 1.00 5.00 1.00 15.00 7.00 39.00 FY 2016-17 1.00 1.00 Significant Budget Adjustments The Plant Operations Operating Budget for FY 2016-17 is $14.9 million, a $497,000 or 3.2% decrease over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, increases in chemical costs for the purchase of sodium hydroxide to meet new Section 129 Clean Air Act Regulations and the transfer of public agency fees from the Environmental and Regulatory Compliance Division were offset by the transfer of some costs to the Recycled Water Program and lower utility costs. 71 Operations Department District Safety Program OVERVIEW The Safety Workgroup oversees and administers the District's Safety Program. The primary objective of the Safety Program is to reduce injuries, accidents, and environmental impact while ensuring compliance. The Safety Workgroup achieves this by providing high quality training; comprehensive workplace evaluation; incident response; hazardous materials management from acquisition to disposal; and managing regulatory information. Fiscal Year 2015-16 Accomplishments This Division had several accomplishments related to the following District Goals: Goal Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 5 — Maintain a Reliable Infrastructure Goal 6 — Embrace Technology, Innovation and Environmental Sustainability 72 Accomplishment Conducted 268 hours of classroom training on 34 safety subjects and completed 329 Safety Tailgates. Developed a Regulatory Training Matrix and 3 -year Safety Training Schedule. Worked closely with Capital Projects to provide design reviews, submittal reviews, contractor orientations, and construction safety oversight. Eliminated the backlog of open safety actions items within the District Safety Committee. Removed over 10,000 lbs. of hazardous waste. Conducted Emergency Preparedness Warden Training and evacuation drills. Fiscal Year 2016-17 Strategic Initiatives This Division will support the following District Goals and Strategies: Goal Goal 1 — Provide Exceptional Customer Service Goal 4 — Develop and Retain a Highly Trained and Innovative Workforce Goal 5 — Maintain a Reliable Infrastructure Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Strategy Improve Interdepartmental Collaboration Enhance Relationship with Employees and Bargaining Units Meet or Exceed Industry Safety Standards Protect District Personnel and Assets from Threats and Emergencies Evaluate Business Processes and Optimize Business Operations Initiative Foster employees' understanding of District operations and their role in our success. Increase internal partnerships. Cultivate a positive work culture and promote teamwork. Achieve consistent improvement on State of California and Bay Area Industry Injury Rate. Enhance the safety culture through improved training and communications. Enhance our capability to mitigate, prepare, respond, and recover from emergencies. Evaluate and implement appropriate improvements to security program to meet new or evolving threats. Perform business process mapping and re-engineering. Operations Department EUM Attribute Customer Satisfaction Employee and Leadership Development Employee and Leadership Development Employee and Leadership Development Employee and Leadership Development Enterprise Resiliency Enterprise Resiliency Operational Optimization 73 Operations Department Budget Overview By Ex Sense Category Account Description Salaries &Wages Employee Benefits Repairs & Maintenance Hauling & Disposal Professional & Legal Services FY 2015-16 Budget $216,956 $221,760 FY 2015-16 Projected $231,400 $212,170 $77,200 $77,200 $10,250 $10,250 FY 2016-17 Budget $349,884 $312,759 $71,000 $10,250 Budget to Projected Variance $118,484 $100,589 Percent Variance 51.2% 47.4% Budget to Budget Variance $132,928 $90,999 ($6,200) -8.0% ($6,200) $0 0.0% $0 $5,000 $5,000 $2,500 ($2,500) -50.0% ($2,500) Outside Services $153,250 $170,500 $87,000 ($83,500) -49.0% ($66,250) -43.2% $38,500 $38,500 $34,500 ($4,000) -10.4% Percent Variance 61.3% 41.0% -8.0% 0.0% - 50.0% Materials & Supplies Other Expenses $57,795 $57,795 $45,575 ($12,220) Total $780,711 $802,815 $913,468 $110,653 Personnel Requirements -21.1% 13.8% ($4,000) ($12,220) $132,757 - 10.4% - 21.1% 17.0% Regular Status Employees FY 2015-2016 FY 2016-2017 Operations Safety Specialist Safety Officer Total 1.00 1.00 2.00 2.00 1.00 3.00 Significant Budget Adjustments The Safety Program Budget for FY 2016-17 is $913,468, a $133,000 or 17% increase over last year. Outside of the overall changes in wages and benefits, discussed elsewhere, the main driver for the change is the transfer of a Safety Specialist position from the Collection System Operations Division. 74 Recycled Water Program OVERVIEW Operations Department This Program draws resources from several Divisions to provide support for the production and distribution of recycled water to Zone 1 customers, commercial customers, construction contractors, and residential customers through the residential fill station. This Program also includes the planning and regulatory support for the existing system and planned expansions, including the Satellite Recycled Water Facility Program. Fiscal Year 2015-16 Accomplishments This Program had several accomplishments related to the following District Goal: Goal Goal 6 — Embrace Technology, Innovation and Environmental Sustainability Accomplishment Developed a Recycled Water Policy. Developed a wholesale rate for recycled water. Served over 55,000 customers and delivered over 11 million gallons of recycled water at our residential fill station. Connected 14 new businesses to the recycled water distribution system for landscape irrigation. Completed the first phase of the Wholesale Opportunity of Recycled Water Study. Completed MOU with Diablo Country Club on a Satellite Water Recycling Facility (SWRF) for 0.5 MG/day and developing an agreement for the District to own and operate the SWRF. Negotiated terms for a future agreement with CCWD for the District to supply 3-5 MG/day of recycled water to serve a portion of the cooling water demand at the Shell Refinery. 75 Operations Department Fiscal Year 2016-17 Strategic Initiatives This Program will support the following District Goa Goal Goal 1 - Provide Exceptional Customer Service Goal 2 - Strive to Meet Regulatory Requirements Goal 6 - Embrace Technology, Innovation and Environmental Sustainability 76 Is and Strategies: Strategy Foster Customer Engagement and Awareness Strive to Achieve 100% Permit Compliance in Air, Water, Land and Other Regulations Augment the Region's Water Supply 1 Provide high quality customer service. Meet existing regulations and plan for future regulations. Foster relationships with regulatory agencies. Explore partnering opportunities (e.g. CCWD and EBMUD). Develop a Satellite Recycled Water Facilities Program. EUM Attribute Customer Satisfaction Product Quality Stakeholder Understanding and Support Stakeholder Understanding and Support Water Resource Sustainability Budget Overview By Ex Sense Category Account Description Salaries &Wages Employee Benefits Chemicals Utilities Repairs & Maintenance Hauling & Disposal Outside Services Materials & Supplies Other Expenses Total FY 2015-16 Budget $0 $0 FY 2015-16 Projected $207,800 $189,000 FY 2016-17 Budget $763,147 $477,148 Budget to Projected Variance $555,347 $288,148 Percent Variance 267.3% 152.5% Operations Department Budget to Budget Variance $763,147 $477,148 Percent Variance 0.0% 0.0% $0 $74,000 $84,000 $10,000 13.5% $84,000 0.0% $0 $160,000 $175,000 $15,000 9.4% $175,000 0.0% $0 $6,800 $30,000 $23,200 341.2% $30,000 $0 $500 $14,000 $13,500 2700.0% $14,000 0.0% 0.0% $0 $120,000 $202,500 $82,500 68.8% $202,500 0.0% $0 $ 6,400 $5,900 ($500) -7.8% $5,900 0.0% $0 $45,600 $50,024 $4,424 9.7% $50,024 0.0% $0 $810,100 $1,801,719 $991,619 122.4% $1,801,719 0.0% Personnel Requirements Several District Divisions support the Recycled Water Program. Personnel for the Recycled Water Program are shown in their respective Divisions. A portion of their labor costs, as appropriate to their time spent on the Program, are included in the Recycled Water Budget under salaries and wages, and employee benefits. Significant Budget Adjustments The Recycled Water Program Operating Budget for FY 2016-17 is $1.8 million. This is a new budget for FY 2016-17 and includes the transfer of costs from Collection System Operations, Plant Maintenance, Plant Operations, Environmental and Regulatory Compliance, and Planning and Development Services to fund treatment and production, distribution, recycled water fill stations, planning for satellite facilities and other recycled water opportunities. 77 Self -Insurance Program The District has self-insured a portion of its liability and property risks since July 1, 1986, when the board approved the establishment of the Self Insurance Fund (SIF). The district currently self -insures general and auto liability risks up to $500,000 per occurrence and purchases a $15 million excess liability insurance policy above that retention. At this time, the District does not purchase insurance coverage for earthquake or flood losses because insurance programs currently available in California are very expensive for the scope and limits of coverage provided. As a result, the District self -insures these risks. Fund Allocation In 1994, the Government Accounting Standards Board issued statement No. 10 (GASB -10) which established requirements on how public agencies must fund their self-insured risks. To assure compliance with GASB -10, the district restructured the SIF into three sub -funds. Each of the three sub -funds was established to pay for specific losses and expenses. Table 1 presents a recent financial history and projection of the SIF and shows the FY 2016-17 SIF budget. The SIF revenue for FY 2016-17 is projected to be $1,020,401 and expenses are projected to be $948,000, resulting in net SIF reserves of $6,502,132. The budgeted revenues include the allocation of $920,000 from the FY 2016-17 O&M budget to the SIF. Sub -Fund A: Actuarially -Based Risks Sub -fund A is used to pay claims and expenses within the District's self-insured liability retention. Claims in excess of this retention are covered by the excess insurance policy that renews annually on July 1. Under the requirements of GASB -10, risks that can be actuarially studied must be funded based on an actuarial study performed at least every two years. General liability and automobile liability risks are readily studied throughout the insurance and self-insurance industry to project funding levels for future losses. The District obtained an actuarial review of its self-insured general liability and automobile liability risks in October 2014. The next actuarial report will be performed in August 2016 using loss data through June 30, 2016. The Board established a policy to maintain the Sub -fund A reserve at three times the amount of the District's self-insured retention. The current $500,000 retention requires a $1.5 million reserve. This reserve is used to pay claims and expenses throughout the year and is replenished the following fiscal year. Table 2 shows budgeted revenue for FY 2016-17 of $5,868 with expenses of $225,000 for a reduction of $219,132. This amount will be transferred from Sub -fund C in order to maintain the minimum reserve at $1.5 million. 78 Self -Insurance Program Sub -Fund B: Non -Actuarially -Based Risks Sub -fund B was used to pay claims and expenses for liability losses that could not be actuarially evaluated and/or were not covered by the excess liability insurance policy. This included employment practices claims and certain types of pollution claims. Employment practices and pollution claims are infrequent, are usually expensive and often take longer to resolve than other types of claims. Since this makes accurate loss forecasting difficult, GASB does not require an actuarial study for these risks. Given these factors and the absence of insurance coverage for some of these risks, the District had maintained this fund with a $2.4 million reserve. At the November 17, 2014 special meeting, the Board chose to simplify reserving for all risks that do not require GASB -10 compliance by consolidating all other reserves into a single fund. The Board also wanted to make sure that funds were reserved for catastrophic losses or emergency response. In order to meet the joint goals of consolidating reserves and establishing a catastrophic loss fund, Sub -fund B has been retired with all reserves for these risks transferred to Sub -fund C. As a result, Table 3 shows a FY 2015-16 ending balance of $0 and no allocation for FY 2016-17. Sub -Fund C: Non-Gasb 10 Risks This Sub -fund has historically covered Risk Management program expenses including insurance premiums, self-insured property losses, potential losses from uninsurable risks, and the costs of initiating claims and lawsuits against others. As noted above, this fund now includes reserves for non -GASB 10 risks and catastrophic losses. The Board established a policy to maintain this reserve at $5 million. This reserve is used to pay claims and expenses throughout the year and is replenished the following fiscal year. This fund also receives the annual O&M contribution and then re -allocates funds needed to maintain the required reserve in Sub -fund A. Table 4 shows budgeted revenue for FY 2016-17 of $1,014,533 which includes a transfer from the O&M fund of $920,000. The expenses for FY 2016-17 are $723,000, or $291,533 less than revenues. Most of this surplus ($219,132) will be transferred to sub -fund a, leaving the ending reserves at the policy level of $5 million. Figure 1 shows the history of revenue, expense and reserve balance for the entire SIF. Figure 2 shows the history of loss payments and insurance premiums. Figure 3 shows reserves by sub -fund. Figure 4 shows the reserve history for the individual sub -funds and the SIF as a whole. 79 1 Self -Insurance Program Tables and Figures Table 1 - Self Insurance Fund (SIF) July 1, 2011 - June 30, 2017 FY 2011-12 Actual FY 2012-13 Actual FY 2013-14 Actual FY 2014-15 Actual FY 2015-16 Projected FY 2016-17 Budget Revenues SIF Allocation from O&M Fund Insurance Allocation from HHW Subrogation Recovery Interest Income Total Revenue $850,000 $850,000 $600,000 $650,000 $1,500,000 $920,000 $24,878 $21,183 $21,236 $21,187 $71,500 $75,000 $1,660 $19,436 $895,974 $1,349,322 $15,269 $2,235,774 $23,212 $10,180 $654,628 $165,950 $10,834 $847,971 $1,313 $22,826 $1,595,639 $0 $25,401 $1,020,401 Expenses Claims Adjusting Insurance Consulting Loss Payments Legal Services Technical Services Insurance Premiums Total Expenses Revenue Over Expense $0 $0 $72,605 $304,672 $14,803 $418,769 $810,849 $1,218,301 $5,000 $440,991 $266,900 $24,856 $424,419 $2,380,467 $766 $0 $115,501 $200,591 $42,167 $499,713 $858,738 $219,377 $5,000 $280,619 $148,500 $207,793 $472,230 $1,333,519 $0 $2,000 $0 $6,000 $850,000 $200,000 $74,000 $75,000 $55,000 $85,000 $580,000 $948,000 $529,892 $1,508,892 1 $85,125 ($144,693) ($204,110) ($485,548) $86,747 $72,401 Reserves Beginning of Year Reserve Policy Transfer Revenue over Expense End of Year Reserves $4,742,210 $4,827,335 $4,682,642 $0 $0 $0 $85,125 ($144,693) ($204,110) $4,827,335 $4,682,642 $4,478,532 $4,478,532 $0 ($485,548) $3,992,984 $3,992,984 $2,350,000 $86,747 $6,429,731 $6,429,731 $0 $72,401 $6,502,132 Uncommitted Reserves Actuarial Reserves - GASB 10 (Fund A) Non- Actuarial Reserves - GASB 10 (Fund B) Non -GASB 10 Reserves (Fund C) 80 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $2,400,000 $2,400,000 $2,400,000 $2,400,000 $1,427,335 Total Reserves $4,827,335 Change in Reserves $85,125 $1,282,642 $4,682,642 ($144,693) $1,078,532 $4,478,532 ($204,110) $592,984 $3,992,984 ($485,548) $1,500,000 $0 $4,929,731 $6,429,731 $6,502,132 $2,436,747 $72,401 $1,500,000 $0 $5,002,132 Self -Insurance Program Table 2 - SIF - Sub Fund A—Actual FY 2014-15, Projected FY 2015-16 and Budgeted FY 2016-17 Sub -Fund A: GASB -10 Actuarially Based Risks General Liability and Automobile Liability FY 2014-15 FY 2015-16 FY 2016-17 Actual Projected Budget Actuarial Reserves - GASB 10 - Beginning of Year Revenues O&M Subrogation Recovery Interest Expenses Losses Legal Technical Total Revenues Total Expenses $1,000,000 $1,000,000 $1,500,000 $1,000,000 - $165,950 - - $2,354 $5,257 $5,868 $168,304 $1,005,257 $5,868 $280,619 $850,000 $100,000 $48,519 $65,000 $50,000 $207,793 $55,000 $75,000 $536,931 $970,000 $225,000 Ir Revenue Over Expense ($368,627) $35,257 ($219,132) Reserves Transfer (to)/from Sub -Fund C IL_$368,627 $464,743 $219,132 Total Reserves Projected End of Year $1,000,000 $1,500,000 $1,500,000 Note: Sub Fund a was increased from $1.0M to $1.5M in fiscal year 2015-16 as part of the Reserve Policy adopted by the Board (BP 017). Reserve is for three occurrences. 81 Self -Insurance Program Table 3 - SIF - Sub Fund B -Actual FY 2014-15, Projected FY 2015-16 and Budgeted FY 2016-17 Sub -Fund B: GASB -10 Non -Actuarially Based Risks Catastrophic and Self -Insured Risks Beginning Reserves Revenues O&M Recovery Interest Total Revenues Expenses Losses Legal Technical Total Expenses Revenue Over Expense Reserves Transfer (to)/from Sub -Fund C Transfer (to)/from Sub -Fund C FY 2014-15 Actual $2,400,000 $5,649 $5,649 i $60,880 $60,880 ($55,231) FY 2015-16 Projected $2,400,000 $17,522 $17,522 $4,000 $4,000 $13,522 $55,231 ($13,522) ($2,400,000) FY 2016-17 Budget Total Reserves Projected End of Year $2,400,000 $- $- Note: Sub Fund B was transferred to Sub Fund C Emergency Reserves. 82 Self -Insurance Program Table 4 - SIF - Sub Fund C -Actual FY 2014-15, Projected FY 2015-16 and Budgeted FY 2016-17 Sub -Fund C: NON GASB -10 Risks - Risk Management Program Insurance Premiums and Self -Insured Property Losses Beginning Reserves FY 2014-15 Actual $1,078,532 FY 2015-16 Projected $592,984 FY 2016-17 Budget $4,929,731 Revenues O&M $650,000 $500,000 $920,000 $1,313 Subrogation Recovery Insurance Recovery from HHW Partners Interest $21,187 $ 2,831 $71,500 $47 Total Revenues $674,018 $572,860 $1,014,533 i $75,000 $19,533 Expenses Losses Legal Technical Insurance Premiums Insurance Consulting Services Claims Adjustment Total Expenses $39,101 $472,230 $5,000 $219,377 $735,708 $5,000 $529,892 $534,892 $100,000 $25,000 $10,000 $580,000 $6,000 $2,000 $723,000 Revenue Over Expense ($61,690) $37,968 $291,533 0 Reserves Transfer (to)/from Sub -Funds A Transfer (to)/from Sub -Funds B Transfer (to)/from Sub -Funds B Reserve Policy Transfers ($368,627) ($464,743) ($219,132) $2,400,000 ($55,231) $13,522 $2,350,000 Total Reserves Projected End of Year $592,984 $4,929,731 $5,002,132 Note: Sub Fund C was increased to $5.0M in fiscal year 2015-16 as part of the Reserve Policy adopted by the Board (BP 017). 83 Self -Insurance Program Figure 1 - History of Revenue, Expense and Reserve Balance $7,000,000 - $6,000,000 $5,000,000 $4,000,000 w O $3,000,000 $2,000,000 $1,000,000 $0 2011-2012 Actual 2012-2013 Actual ❑ Total Revenue 2013-2014 Actual 2014-2015 Fiscal Year Actual 2015-2016 Projected ❑ Total Expenses ■End of Year Reserves Figure 2 - History of Loss Payment & Insurance Premiums $900,000 - $800,000 $700,000 $600,000 $500,000 O $400,000 $300,000 $200,000 $100,000 $0 84 2011-2012 Actual 2012-2013 Actual 2013-2014 Actual 2014-2015 Fiscal Year Actual ■Loss Payments • Insurance Premiums 4 • 2015-2016 Projected 2016-2017 Budget 2016-2017 Budget Figure 3 - Reserves by Sub -Fund $6,000,000 - $5,000,000 $4,000,000 w 2 $3,000,000 0 $2,000,000 $1,000,000 $0 2011-2012 Actual 2012-2013 Actual 2013-2014 Actual 2014-2015 Fiscal Year Actual 2015-2016 Projected Self -Insurance Program 2016-2017 Budget ❑Actuarial Reserves - GASB 10 (Fund A) • Non- Actuarial Reserves- GASB 10 (Fund B) ■ Non -GASB 10 Reserves (Fund C) Figure 4 - History of Reserves $7,000,000 - $6,000,000 $5,000,000 $4,000,000 0 $3,000,000 $2,000,000 $1,000,000 $0 2011-2012 Actual 2012-2013 Actual 2013-2014 2014-2015 Actual Actual Fiscal Year 1 2015-2016 Projected 2016-2017 Budget ❑Actuarial Reserves - GASB 10 (Fund A) • Non- Actuarial Reserves- GASB 10 (Fund B) ■ Non -GASB 10 Reserves (Fund C) 85 Capital Improvement Program Summary The District funds an extensive Capital Improvement Program designed to preserve, maintain, and enhance the District's assets, meet regulatory requirements, accommodate the community's needs, and protect public health and the environment. Capital improvements are construction or renovation activities that add value to the District's fixed assets (pipelines, buildings, facilities, and equipment) or significantly extend their useful life. The District's Capital Improvement Budget (CIB) provides a detailed presentation of the project cost estimates proposed for the first year of the ten-year plan beginning July 1, 2016. For Fiscal Year (FY) 2016-17, the CIB shows planned expenditures of approximately $36.8 million from the Sewer Construction Fund. These expenditures are for planning, design, and construction of capital projects within four CIB programs: (1) Collection System; 2) Treatment Plant; 3) General Improvements; and 4) Recycled Water. The total estimated funding required for all current projects shown in the FY 2016-17 CIB is $167.6 million, which includes approximately $50.9 million of prior expenditures and $79.8 million in future fiscal years, as shown below: Fiscal Year 2016-17 Capital Improvements Budget per Program Estimated Expenditures Progra Collection System Treatment Plant General Improvements Recycled Water CIB Contingency Budgeted to date $34,197,100 $28,414,100 $7,876,000 $1,855,000 $0 Prior Fiscal Years $16,872,230 $26,241,377 $6,528,187 $1,342,647 $0 Totals $72,342,200 $50,984,441 FY 16/17 $17,925,105 $13,125,000 $3,808,651 $500,000 $1,450,000 $36,808,756 $29,845,032 $34,820,723 $14,047,162 $1,127,353 $0 $79,840,270* *Approval of FY 2016-17 projects will commit approximately $30.4 million in future fiscal years. Project Tot $64,642,367 $74,178,100 $24,384,000 $2,970,000 $1,450,000 $167,633,467 By adopting the CIB, the Board of Directors authorizes staff to pursue work on specifically identified projects in the Treatment Plant, Collection System, General Improvements, and Recycled Water Programs. In addition, The Board has authorized firm individual project budgets and delegated authority to implement the projects as approved under the CIP Authorization Limits. The ten-year Capital Improvement Plan (CIP) provides the basis for project scheduling, staffing, and long-range financial planning. The CIP also serves as the framework for capital fee decisions. The total estimated expenditures proposed under the FY 2016-17 CIP is $413.4 million and has not changed from last fiscal year. This budget will likely be revised and updated once the Comprehensive Wastewater Master Plan (CWMP) is completed early next year. 86 Acronyms and Abbreviations in the CIB/CIP AB Assembly Bill ADA Americans with Disabilities Act ADWF AFY Acre -Feet per Year A/N Aeration and Nitrification ARB Air Resources Board ArcSNAP ASB Auxiliary Steam Boiler AWWF B&G Buildings and Grounds BAAQMD BACWA Bay Area Clean Water Agencies CAA Clean Air Act CAD Contractual Assessment District CAFR CaIOSHA California Occupational Health and Safety Average Dry Weather Flow Sewer Network Analysis Program Average Wet Weather Flow Bay Area Air Quality Management District Comprehensive Annual Financial Report CARB Administration California Air Resources Board CBC California Building Code CASA California Association of Sanitation Agencies CCCERA Contra Costa County Employees Retirement Association CCCSD CCTV CCWD CEC CECs CIB CIP CIPP CNWS Co -Gen CO2 COP CS CSO CSOD CWMP DAF Central Contra Costa Sanitary District Closed Circuit TV Contra Costa Water District California Energy Commission Constituents of Emerging Concern Capital Improvement Budget Capital Improvement Plan — covers ten years Cured -in -Place Pipe Concord Naval Weapons Station Cogeneration Carbon Dioxide Certificates of Participation Collection System Collection System Operations Collection System Operations Division Comprehensive Wastewater Master Plan Dissolved Air Flotation DI De -Ionized or Discrete Input District DP District Project DTSC DWR Department of Water Resources EIR Elec Electrical EOC Emergency Operations Center EPA Environmental Protection Agency ERP FCD Contra Costa County Flood Control and Water Conservation District Central Contra Costa Sanitary District Department of Toxic Substances Environmental Impact Report Enterprise Resource Planning Fund FY GDI GHG Greenhouse Gas GI GIS GPS HOB HTE HVAC Sewer Construction Fund Fiscal Year —July 1 through June 30 Geographic Data Integration IEEE General Improvements Program Geographic Information Systems Global Positioning System Headquarters Office Building SunGard Program Heating, Ventilating, and Air Conditioning Institute of Electrical and Electronics Engineers IFCO Industrial Furnace Company I/O IT Information Technology LT M1 Manhole 1 MCC Motor Control Center MGD Million Gallons per Day MHF NACWA National Association of Clean Water Agencies (formerly AMSA) Input and Output Long Term Multiple Hearth Furnace NPDES NFPA O&M PE PLC PG&E Pacific Gas & Electric Company National Pollutant Discharge Elimination System National Fire Protection Agency Operations & Maintenance Primary Effluent Programmable Logic Controller 87 Capital Improvement Program Acronyms and Abbreviations in the CIB/CIP Ph POB POD PPE PS PTW RFP RWQCB RUE RW or ReW 88 Phase Plant Operations Building Plant Operation Division Personal Protective Equipment Pumping Station Power Tools for Windows (software program) Request for Proposal Regional Water Quality Control Board Residential Unit Equivalent Recycled Water Acronyms and Abbreviations in the CIB/CI SCADA SCB SCF SSC SSMP SSO TP USACE USEPA Supervisory Control and Data Acquisition Solids Conditioning Building Sewer Construction Fund Sewer Service Charge Sewer System Master Plan Sanitary Sewer Overflow Treatment Plant United States Army Corps of Engineers United States Environmental Protection Agency v volt y Benicia Capital Improvement Program CIP Location Vap 1 Clayton Berkeley 1.66.1 • CCCSD's Headquarters Office Building, Treatment Plant, and HHW Collection Facility • CCCSD's Collection System Operations Department (sewer maintenance) Wastewater collection and treatment and Wastewater treatment and HHW collection for 137,000 residents in Concord and Clayton HHW collection for 339,000 people by contract HHW disposal services only N 0 2 4 Recycled Water Zone 1 Miles 89 Capital Improvement Program CIP ACCOVPLISHVENTS - Completion of the Primary Treatment Renovation Project: Construction of this project started in July 2013 with a total estimated project budget of $14.9 million. This project focused on renovation work and improvements to the treatment plant primary process, which includes grit and scum handling, primary sludge, primary effluent pumping, infrastructure rehabilitation, electrical, and controls improvements. The major items completed include replacement of the grit handling system, replacement of the scum thickener in the SCB, refurbishment of two primary effluent pumps with new VFD's, new baffles in the primary sedimentation tanks, and replacement of the primary control valve. Other primary tank renovation include new scum skimmers and drives, sprays, process piping, chain drives, sludge flight drive shafts and bearings, repairing concrete, electrical replacement, and improving the level control system. - Started Construction of the Pleasant Hill Grayson Creek Trunk Sewer Project: The design of this project started in 2012 and has been coordinated with the Pleasant Hill, Martinez, United States Department of the Interior Bureau of Reclamation, and other utility agencies in the project vicinity. The total estimated project budget is $13.7 million and proposes to install approximately 10,000 feet of sewers. The project will also include replacement of the truck sewer on Pleasant Hill Road (previously known as the PH Corridor Project). This project will allow for future main sewer replacement in Pleasant Hill and abandon several trunk sewers along Grayson Creek. Continuing Main Sewer Replacement and Completed the Lafayette Phase 9 and Martinez Phase 4 Sewer Renovation Projects: These projects combined for a total of approximately 16,800 of sewer replacement and rehabilitation, of which most where old 6 -inch vitrified clay main sewers. Construction comprised of sewer replacement, new manholes, and other infrastructure improvements on public -right-of-way and easements in Lafayette and Martinez. Trenchless technology was utilized where possible for cost effectiveness and to minimize construction impacts. - Completed Construction of the Wet Scrubber Caustic Injection Project to Help Meet Regulatory Requirements: The furnace wet scrubbers are a key component to controlling air emissions. Changes in the Clean Air Act Section 129 regulations, effective March 21, 2016, include new air emission and scrubber water pH limits. The caustic injection system constructed under this project will help the existing furnace scrubbers meet the regulations. - Pre -purchased Major Electrical Equipment and Bid the Sub 16 Switchgear Replacement Project: The existing electrical switchgear that powers the Headworks Facility and influent pumps at the treatment plant requires immediate replacement. The District has issued a pre -purchase agreement to procure the switchgear and is currently in the process of awarding a construction contract for the installation of the replacement switchgear. 90 CIB-Project Prioritization Each capital project addresses one or more of the following goals: m Strive to meet regulatory requirements; m Be a fiscally sound and effective water sector utility; m Provide exceptional customer service; m Protect public health and the environment; Capital Improvement Program m Maintain and replace existing assets; m Embracing a policy of sustainability for the responsible use of existing resources; m Accommodate planned future growth. The projects included in the FY 2016-17 CIB have been prioritized to ensure the best use of available, approved funds. Each project was evaluated using a District specific prioritization scoring system that includes input from all stakeholders within the Operations and Engineering Departments. The prioritization scoring and ranking system use existing District prioritization strategies, including guidelines from the Water Environment Research Foundation (WERF), and prioritization procedure similar to other National Association of Clean Water Agencies (NACWA) member agencies. Each project is assigned a priority ranking of Critical, Very High, High, or Medium based on the scoring. The scores take into consideration the "triple -bottom-line" of social, environmental, and financial benefits of the project and their applicability to the District's Mission and Strategic Goals. The following criteria are considered in prioritizing projects: Essential Commitments: Complies with Regulatory Requirements and Mandates Meets Commitment with Outside Agency or Existing Contract Reduces Potential Health or Safety Hazards Implements Board of Director's Policy/Priority Increases Capacity to Meet Projected Build -out Project Benefits Impacts Project Phasing or Implementation Schedule for Other Projects Optimizes Capital Expenditures Reduces Operations and Maintenance Costs Reduces Social Impacts Increases Sustainable Use of Natural or Existing Resources Reduces Environmental Impacts Supports Timely Adoption of Technology Improvements Operational Reliability Consistent with Asset Management Policies Improves Reliability and System Performance Improves Facility -Wide Resiliency 91 Capital Improvement Program CIB-Vajor Project Emphasis Although the CIB is made up of funding estimates for many individual projects, each year there are several major projects that together account for a majority of total estimated capital expenditures. In FY 2016-17 the emphasis will be on 13 large projects (typically those projects over half a million dollars), which together account for $26,498,238 or 72% of the total estimated expenditures. Each major project is summarized, including FY 2016-17 estimated expenditures, as noted below: . Comprehensive Wastewater Master Plan FY 2016-17: $2,100,000 Estimated total project cost: Estimated completion date: $4,700,000 April 2017 This project is developing the comprehensive master plan for the wastewater treatment plant and collection system to update the 10 -year Capital Improvements Plan and budgets, including condition assessments, collection system dynamic model, filter plant, in coordination with asset management, as well as planning for the next 20 years. -Grayson Cree - - er (includes P FY 2016-17: $8,900,000 Estimated total project cost: Estimated completion date: $13,700,000 August 2017 The project involves installing approximately 12,000 feet of 15-, 18-, and 24 inch relief sewers and diverting the sewage away from the deficient sewers and for future renovation needs. It started in early Spring 2016 and is scheduled to be completed in Summer 2017. 3. Lafayette Sewer Renovations — Phase 10 FY 2016-17: $2,250,238 Estimated total project cost: Estimated completion date: $3,530,000 January 2017 This project will replace/rehabilitate approximately 9,000 feet of existing sewer pipelines and associated facilities in the City of Lafayette. 4. North Orinda Sewer Renovations — Phase FY 2016-17: $2,154,000 Estimated total project cost: Estimated completion date: $3,312,500 February 2017 This project will replace or rehabilitate approximately 8,700 lineal feet of existing sewer mains and associated facilities in the City of Orinda. 5. ' ump and Blower eismic Upgrades FY 2016-17: $2,900,000 Estimated total project cost: Estimated completion date: $5,953,000 December 2017 This project is part of the District's seismic improvement plan based on the Treatment Plant Seismic Vulnerability Assessment. The project will retrofit the Pump and Blower Building to be in line with current seismic design standards. 6. Substation 16 Switchgear Replacement FY 2016-17: $2,144,000 Estimated total project cost: Estimated completion date: $2,644,000 August 2017 The electrical switchgear serving the Headwork's (Substation 16) will be replaced during the next fiscal year. Work includes removal of the existing switchgear, building modifications, and support facilities necessary for the new installation. 92 Capital Improvement Program 7. Headwork's Screening Project FY 2016-17: $1,600,000 Estimated total project cost: Estimated completion date: $8,400,000 March 2018 This project will replace the existing climber screens with multi -rake fine screens and construct a new screenings removal system and other improvements to the Treatment Plant Headwork's facility. 8. Information Technology Developmen FY 2016-17: $900,000 Estimated total project cost: Estimated completion date: $9,400,000 June 2024 This project provides funding for the District's computer and telecommunication technology needs and implementation of the IT Master Plan. 9. Asset Management Program Development FY 2016-17: $800,000 Estimated total project cost: Estimated completion date: $2,700,000 July 2018 The District is developing a comprehensive asset management program that aims to optimize the lifecycle of all assets to deliver high quality and reliable services in a sustainable manner for customers with an acceptable level of risk. Implementation will occur over several years and will include such tasks as standardizing and completing the asset register, adding critical plant infrastructure to the GIS, consolidating CCTV databases, and documenting asset management processes and procedures and a comprehensive plan. Specialty tasks utilizing outside assistance include utility locating and condition assessments, and training Plant Maintenance staff to develop a reliability centered maintenance program, assistance with business process review and review of the comprehensive asset management plan. 1 ,. a•oratory 1pgra•esan• epair FY 2016-17: $700,000 Estimated total project cost: Estimated completion date: $1,171,500 December 2016 This project will replace the failed 150 -ton chiller, modify the HVAC system, and other improvements to the treatment plant's laboratory. 1. Development Sewerage FY 2016-17: $800,000 Estimated total project cost: Estimated completion date: $8,000,000 June 2024 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. . erver Room Re oca ion FY 2016-17: $650,000 Estimated total project cost: Estimated completion date: $1,500,000 December 2017 This project will relocate and improve the District's main data center and IT infrastructure. . quipment and Vehicle Ac FY 2016-17: $600,000 Estimated total project cost: Estimated completion date: $6,000,000 June 2023 This project provides funding and capitalization of the District's annual purchase of vehicles and major equipment. 93 Capital Improvement Program CIB-Collection System Program The major points of emphasis for the Collection System Program in FY 2016-17 are: - Collection System Master Plan to update the collection system hydraulic hydrodynamic model; - Renovate sewers as they reach the end of their useful lives to avoid structural failure, reduce dry -weather overflows, and control maintenance costs; Upgrade District sewers to relieve capacity constraints and for future renovations; - Improve the reliability of pumping stations; and - Respond to regulatory requirements related to sanitary sewer overflows (SSOs). The process for project identification, prioritization, and scheduling includes seven major components: - Results from the District's TV inspection program that identify lines in need of rehabilitation or replacement; - CSO maintenance records including overflows and stoppages; - The Pumping Station Inventory Update, which identified necessary reliability improvements; Collection system facility plans, which identify capacity limitations in the six- through ten -inch lines; - Coordination with capital improvement programs for paving and pipeline projects of other agencies/utilities; and - Reduce impacts to customers/residents. This process allows staff to establish priorities and schedules for the individual elements of the system that are incorporated into the capital budget and plan. Assessment tools, such as CCTV inspection, are utilized to confirm the need for projects. After priorities and schedules are set, projects proceed to design and construction. At each step of the process, the level of accuracy in project scope, schedule, and cost improves. The Collection System Program is comprised of four subprograms, which includes 1. Renovation, 2. Regulatory Compliance/Planning/Safety, 3. Expansion, and 4. Pumping Stations. All projects in the Collection System Program are summarized, including planned expenditure, in the following table. 94 Lai Capital Improvement Program FY 2016-17 CIB Collection System Program Budget/Project Summary Estimated Expenditures Project Number 5941 PS Equipment Piping Replacement Budgeted to Date Prior Fiscal Years FY2016/ 17 Project Total $740,000 $704,000 $10,000 $190,000 $904,000 5982 Pipe burst Blanket Contract $928,000 $700,000 $0 $228,000 $928,000 5991 PH Sewer Renovation Phase 2 $400,000 $183,017 $150,000 $3,166,983 $3,500,000 5999 CIPP Blanket Contract $472,000 $284,650 $0 $187,350 $472,000 6602* South Jackson CAD $334,000 $80,000 $253,867 $0 $333,867 8412 PH Grayson Creek Trunk $13,700,000 $4,000,000 $8,900,000 $800,000 $13,700,000 8415 Martinez Ph 4 Sewer Renovation $3,922,000 $3,700,000 $5,000 $217,000 $3,922,000 8417 Survey Monument Install $200,000 $188,000 $50,000 $262,000 $500,000 8418 Collection System Modeling $1,201,600 $976,665 $200,000 $173,335 $1,350,000 8419 Collection System Planning LT $470,000 $470,000 $200,000 $700,000 $1,370,000 8420 Development Sewerage $3,077,000 $2,167,606 $800,000 $5,032,394 $8,000,000 8422 WC Sewer Renovation Phase 11 $410,000 $105,000 $545,000 $3,100,000 $3,750,000 8423 N. Orinda Sewer Renovation $3,312,500 $1,058,500 $2,154,000 $100,000 $3,312,500 Phase 6 8426 Lafayette Sewer Renovation $3,530,000 $1,124,792 $2,250,238 $154,970 $3,530,000 Phase 10 8429 Fairview Maltby $150,000 $150,000 $350,000 $170,000 $670,000 Lafayette Sewer Renovation Phase 11 8430 $3,650,000 8431 Collection System Master Plan $600,000 $530,000 $670,000 $0 $1,200,000 S. Orinda Sewer Renovation Phase 6 8434 Urgent Projects $300,000 $50,000 $0 $450,000 $500,000 8435 WC Sewer Renovation Phase 12 $0 $0 $150,000 $3,600,000 $3,750,000 8436* Moraga/ Crossroads PS Project $150,000 $100,000 $400,000 $1,500,000 $2,000,000 8437 Martinez Sewer Renovation $150,000 $150,000 $325,000 $3,175,000 $3,650,000 Phase 5 8433 $150,000 $0 $150,000 $0 $500,000 $12,000 $3,000,000 $3,638,000 $3,650,000 *New project included in CIB. Totals $34,197,100 $16,872,230 $17,925,105 $29,845,032 $64,642,367 95 Place for Image Pumping Stations Equipment and Piping Replacement Project Name Program: Sub -Program: Project Manager: Dept/Division: Pumping Stations Equipment and Piping Replacement Collection System Program Pump Station Neil Meyer Operations/Maintenance Purpose: The purpose of this project is to replace or recondition failed and obsolete pumps, piping, valves, and other equipment; to provide for proper emergency response at District pumping stations; to purchase major spare assemblies for various pieces of pumping stations equipment; and to meet new regulatory requirements. History: This project has been an ongoing replacement of old equipment and piping at the Pump Stations. Selection of equipment is done by the Operations staff, Engineering, and in coordination with the ongoing Asset Management Program. Description: The scope of work for this project includes, as examples, the following: Project No. Phase Priority Rank Ranking Score Concord % 5941 C Critical 65 0% C M. m Addition of control and isolation valves for shutdown and protection of the stations; ▪ Revisions to control strategies and equipment response times; m Possible protections for pumping stations and equipment, if flooded; m Investigation and installation of "pump around" capabilities; m Development of emergency response procedures and purchasing equipment; ▪ Reconditioning of major pieces of equipment to original factory specifications; m Purchase of large -dollar spare assemblies for major PS equipment; m Other work or equipment requirements that might be defined by regulators. Location: All pumping Stations Schedule & Budg Phase: Planning Design Construction FY Total 96 Prior FY's FY 16-17 FY 17-18 - $0 $0 - $0 $0 $704,000 $10,000 $190,000 $704,000 $10,000 $190,000 Future FY's $0 $0 $0 $0 Total $904,000 $904,000 Place for Image Pipeburst Blanket Contract Project Name Program: Sub -Program: Project Manager: Dept/Division: Pipeburst Blanket Contract Collection System Program Renovation Alex Rozul Operations/ Collection System Operations Division Purpose: Urgent pipeline projects which require immediate repairs may arise anytime during the current fiscal year. History: Projects included in this category are those that cannot be completed by the District's Collection System Operations Division, and cannot afford the longer timeline to be incorporated in the year-long budget process. This project will include bidding and executing a blanket contract that will allow the District to use a contractor to perform urgent pipebursting work. Description: Project work may be triggered by one of the following situations: imminent threat of pipe break or collapse potential for an overflow structural failure in a pipe Location: Throughout the service area. Project No. Phase Priority Rank Ranking Score Concord % 5982 C Critical 75 0% Schedule & Budge Phase: Planning Design Construction FY Total Prior FY's $0 $0 $700,000 $700,000 FY 16-17 $0 $0 $0 $0 FY 17-18 $0 $0 $228,000 $228,000 Future FY's $0 $0 $0 $0 Total $0 $0 $928,000 $928,000 97 Place for Image Pleasant Hill Sewer Renovations, Phase 2 Project Name Program: Sub -Program: Project Manager: Dept/Division: Pleasant Hill Sewer Renovations, Phase 2 Collection System Program Renovation Nancy Molina Engineering/Capital Projects Purpose: To replace or renovate small -diameter sewers to control future maintenance requirements and costs, to minimize the number of overflows, to limit the quantity of rainfall entering the collection system, and to improve the level of service provided to the residents/ratepayers. History: The District's over 1,500 -mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/ or threat of structural collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry -weather collection system overflows. The District implemented a sewer renovation program in 1991. Since that time, an annual allowance for this renovation program has been included in the Capital Improvement Budget and Plan. Project No. Phase Priority Rank Ranking Score Concord % 5991 P Very High 60 0% Description: The Pleasant Hill Sewer Renovations, Phase 2 project will replace or rehabilitate small diameter sewer pipe located in the public right of ways and easements. This project will be coordinated with the Pleasant Hill - Grayson Creek trunk sewer project, which is in the Expansion subprogram. Location: City of Pleasant Hill Schedule & Budget Phase: Planning Design Construction FY Total 98 Prior FY's $183,017 $0 $0 $183,017 FY 16-17 $0 $150,000 $0 $150,000 FY 17-18 $0 $350,000 $2,500,000 $2,850,000 Future FY's $0 $0 $316,983 $316,983 Total $183,0170 $500,000 $2,816,983 $3,500,000 Place for Image CIPP Blanket Contract Project Name CIPP Blanket Contract Program: Sub -Program: Project Manager: Dept/Division: Collection System Program Renovation Alex Rozul Operations/ Collection System Operations Division Purpose: Urgent pipeline projects which require immediate repairs may arise anytime during the current fiscal year. History: Projects included in this category are those that cannot be completed by the District's Collection System Operations Division, and cannot afford the longer timeline to be incorporated in the year-long budget process. This project will include bidding and executing a blanket contract that will allow the District to use a contractor to perform urgent CIPP lining work. Description: These projects may be triggered by one of the following situations: Project No. Phase Priority Rank Ranking Score Concord % 5999 C Critical 75 0% J imminent threat of pipe break or collapse — potential for an overflow m structural failure in a pipe. Budget for this urgent work will be paid for using CIB Contingency account as needed. Location: Throughout the service area. Schedule & Budget IF Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $0 $0 $0 $0 $0 $0 $0 $0 $284,650 $0 $0 $187,350 $284,650 $0 $0 $187,350 Total $0 $0 $472,000 $472,000 99 Place for Image Phase: Planning Design Construction FY Total 100 Prior FY's $0 $0 $80,000 $80,000 FY 16-17 $0 $0 $253,867 $253,867 FY 17-18 $0 $0 $0 $0 South Jackson Contractual Assessment District Project Name South Jackson Contractual Assessment District Program: Sub -Program: Project Manager: Dept/Division: Collection System Program Expansion Russell Leavitt Engineering/Planning and Environmental Services Purpose: The District developed a Contractual Assessment District (CAD) Program to provide a financing mechanism for the extension of public sewers into areas which are currently served by septic tanks. History: In certain instances, the cost to extend public sewers into an area serviced by septic tanks can be an extreme financial burden for one owner or even a small group of owners. The District developed the CAD Program to address this burden. The CAD process provides a means to finance the cost of sewer improvements over time at a fixed interest rate. The CAD assessments are placed on the customers' property tax bills each year until the entire amount is repaid to the District. Project No. Phase Priority Rank Ranking Score Concord % 6602 C N/A N/A 0% Description: The South Jackson Way CAD in Alamo will install approximately 1,200 feet for 8 -inch sewer and infrastructure that will serve 22 properties, all of which have existing homes presently relying of septic tanks. Location: Alamo Schedule & Budget Future FY's $0 $0 $0 $0 Total $0 $0 $333,867 $333,867 Place for Image Phase: Planning Design Construction FY Total Pleasant Hill - Grayson Creek Trunk Sewer Project Name Program: Sub -Program: Project Manager: Dept/Division: Pleasant Hill rayson Creek Trunk Sewer Collection System Program Expansion Nancy Molina Engineering/Capital Projects Purpose: To achieve the Collection System Program goal of reducing sanitary sewer overflows by adding a new trunk sewer for diversion of flows and replacing old 6 -inch sewer mains. This new trunk sewer will give Staff the ability to implement the necessary renovation work in the City of Pleasant Hill. History: This project was initiated under a previous Collection System Master Plan. District staff has re-evaluated and confirmed the need for the project based on actual flow data and condition assessments of the trunk sewers along Grayson Creek. The work planned under the Pleasant Hill Corridor project was included to avoid significant paving reconstruction on Pleasant Hill Road. The Corridor project was planned to start in 2017. Project No. Phase Priority Rank Ranking Score Concord % 8412 C Critical 65 0% ■ Description: The project involves installing sewer pipelines of various sizes (8" to 24") and diverting the sewage away from the existing capacity -deficient sewers and connect to the existing 36 -inch interceptor that runs along Ardith Drive. The new trunk sewer alignment is within city streets in both the City of Pleasant Hill and Martinez. The existing sewers by the creek will be abandoned and other sewers will be redirected to the new trunk sewer. Due to the City of Pleasant Hill proposed paving projects, the District may need to include additional sewer replacement along Pleasant Hill Road. Location: City of Pleasant Hill Schedule & Budge Prior FY's $0 $1,400,000 $2,600,000 $4,000,000 FY 16-17 $0 $0 $8,900,000 $8,900,000 FY 17-18 $0 $0 $800,000 $800,000 Future FY's $0 $0 $0 $0 Total $0 $1,400,000 $12,300,000 $13,700,000 101 Place for Image Martinez Sewer Renovations, Phase 4 Project Name Martinez Sewer Renovations, Phase 4 Program: Sub -Program: Project Manager: Dept/Division: Collection System Program Renovation MarkWenslawski Engineering/Capital Projects Purpose: Replace or rehabilitate small -diameter sewers in order to prevent overflows, control future maintenance requirements, lower collection system infiltration, and to provide cost effective infrastructure replacement with excellent customer service to the public. History: The District's over 1,500 -mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/ or threat of structural collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry -weather collection system overflows. The District implemented a sewer renovation program in 1991. Since that time, an annual allowance for this renovation program has been included in the Capital Improvement Budget. Project No. Phase Priority Rank Ranking Score Concord % 8415 C Critical 75 0% Description: The Martinez Sewer Renovations, Phase 4 project replaced approximately 7,700 feet on 6 and 8 -inch sewer main pipe in City of Martinez. This project is in the construction phase and scheduled to be completed in FY 2016-17. Location: City of Martinez Schedule & Bu Phase: Planning Design Construction FY Total 102 Prior FY's $216,739 $ 756,404 $2,726,857 $3,700,000 FY 16-17 $0 $0 $5,000 $5,000 FY 17-18 $0 $0 $217,000 $217,000 Future FY's $0 $0 $0 $0 Total $216,739 $756,404 $2,948,857 $3,922,000 Place for Image Survey Monument Installation Project Project Name Program: Sub -Program: Project Manager: Dept/Division: Survey Monument Installation Project Collection System Program Renovation Greg St. John Engineering/Capital Projects Purpose: This project will provide resources necessary to fulfill Survey's professional and legal obligation to reference and replace survey monuments that are destroyed during the construction process. History: Sewer renovation projects frequently remove survey monuments either because the monument lies directly in the path of the new sewer or in the pavement restoration zone. The survey monument installations will be throughout the District service area wherever sewer renovation projects have been completed. Survey monuments must be replaced according to California law (88771 Business and Professions Code). Description: The current project scope of work consists of the installation of survey monuments that were removed during sewer renovation. This project will allow Survey staff to work with a contractor to restore the required survey monuments. Project No. Phase Priority Rank Ranking Score Concord % 8417 C Critical 65 0% Location: Throughout Service Area Schedule & Budg Phase: Planning Design Construction FY Total Prior FY's $0 $0 $188,000 $188,000 FY 16-17 $0 $0 $50,000 $50,000 FY 17-18 $0 $0 $50,000 $50,000 Future FY's $0 $0 $212,000 $212,000 Total $0 $0 $500,000 $500,000 103 Place for Image Collection System Modeling Upgrade Project Name Program: Sub -Program: Project Manager: Dept/Division: Collection System Modeling Upgrade Collection System Program Regulatory Compliance/Planning/Safety Micheal Penny Engineering/Planning and Environmental Services Purpose: Collection System hydraulic model provides the foundation for managing the capacity needs of the District's sewers. The existing steady state model is not suited to Master Planning capacity studies, and the programming language used for the foundation of the model is no longer supported by the vendor. A commercially available dynamic model is needed. History: Staff intiated the the steps necessasy to upgrade the District's collection system modeling capabilities several years ago. Due to the time and effort necessary to complete this project, Staffreccommedned to implement this project along with the Comprehensive Wastewater Master Plan Project. Project No. Phase Priority Rank Ranking Score Concord % 8418 C Critical 65 0% Description: Migrate from a proprietary steady state hydraulic model to a commercially available dynamic hydraulic model. Location: Throughout Service Area Schedule & Budge Phase: Planning Design Construction FY Total 104 Prior FY's $126,666 $0 $701,600 $976,665 FY 16-17 $0 $0 $200,000 $200,000 FY 17-18 $0 $0 $173,335 $173,335 Future FY's $0 $0 $0 $0 Total $126,666 $0 $1,074,935 $1,350,000 Place for Image Collection System Modeling Planning Project Name Program: Sub -Program: Project Manager: Collection System Planning Collection System Program Regulatory Compliance/Planning/Safety Micheal Penny Dept/Division: Engineering/Planning and Environmental Services Purpose: To identify, evaluate, and schedule short and long-term sewer improvement projects and to provide design flow rates for major facility plans. History: Staff performs on-going Collection System Planning and project priority analyses to ensure that District goals for collection system performance are met. Description: Collection System Planning studies provide the basis for improvements to the District's sewer system and flow rates for facility plans. Studies focus on Local Capacity Studies, Collection System Database Management, Flow Rates for Facility Plans, and Special Studies. This project also provides funding for small scale flow monitoring studies and technology trials and assessments and pilot studies. Location: Entire Collection System Project No. Phase Priority Rank Ranking Score Concord % 8419 P Critical 70 0% Schedule & Budge Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $470,000 $200,000 $200,000 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 $470,000 $200,000 $200,000 $500,000 Design Construction FY Total Total $1,370,000 $0 $0 $1,370,000 105 Place for Image I iml 2016-17 Development Sewerage Project Name 2016-17 Development Sewerage Program: Sub -Program: Project Manager: Collection System Program Expansion Tom Godsey Dept/Division: Engineering/Planning and Environmental Services Purpose: This project provides for appropriate capitalization of District force account labor and other expenses for planning, design, and construction of developer installed sewer facilities. History: This is a cost neutral project paid for by Permit Development fees. The costs for the sewer infrastructure is paid by the Developers. Description: The District requires property owners to pay for the main sewers needed to serve their property. Where sewers are designed and installed by developers or other private parties, District planning, plan review, right-of-way, inspection and record drawing/mapping effort is required to ensure that contributed sewers meet the District's Standard Specifications for Design and Construction. These activities are capitalized under this project. A portion of the revenue collected for plan review, right-of-way, and inspection is credited to the Sewer Construction Fund and offsets some of the expenditures made under this capital project. Project No. Phase Priority Rank Ranking Score Concord % 8420 C N/A N/A 0% Location: Entire Collection System Schedule & Budg Phase: Planning Design Prior FY's FY 16-17 FY 17-18 Future FY's $0 $0 $0 $0 $0 $0 $0 $0 Construction $2,167,606 $800,000 $800,000 $4,232,394 $2,167,606 $800,000 $800,000 $4,232,394 FY Total 106 Total $0 $0 $8,000,000 $8,000,000 Place for Image Walnut Creek Renovations, Phase 11 Project Name Walnut Creek Renovations, Phase 11 Program: Sub -Program: Project Manager: Dept/Division: Collection System Program Renovation MarkWenslawski Engineering/Capital Projects Purpose: Replace or rehabilitate small -diameter sewers in order to prevent overflows, control future maintenance requirements, lower collection system infiltration, and to provide cost effective infrastructure replacement with excellent customer service to the public. History: The District's over 1,500 -mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/ or threat of structural collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry -weather collection system overflows. The District implemented a sewer renovation program in 1991. Since that time, an annual allowance for this renovation program has been included in the Capital Improvement Budge. Project No. Phase Priority Rank Ranking Score Concord % 8422 D Critical 65 0% Description: The Walnut Creek Sewer Renovations, Phase 11 project will replace or rehabilitate small diameter sewer pipe located in the public right of ways and easements. Location: City of Walnut Creek Schedule & Bu Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $105,000 $45,000 $0 $0 $0 $500,000 $0 $0 $0 $0 $3,000,000 $100,000 $105,000 $545,000 $3,000,000 $100,000 Total $150,000 $500,000 $3,100,000 $3,750,000 107 Place for Image North Orinda Sewer Renovations, Phase 6 Project Name North Orinda Sewer Renovations, Phase 6 Program: Sub -Program: Project Manager: Collection System Program Renovation MarkWenslawski Dept/Division: Engineering/Capital Projects Purpose: Replace or rehabilitate small -diameter sewers in order to prevent overflows, control future maintenance requirements, lower collection system infiltration, and to provide cost effective infrastructure replacement with excellent customer service to the public. History: The District's over 1,500 -mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/ or threat of structural collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry -weather collection system overflows. The District implemented a sewer renovation program in 1991. Since that time, an annual allowance for this renovation program has been included in the Capital Improvement Budget. Project No. Phase Priority Rank Ranking Score Concord % 8423 C Critical 75 0% Description: The North Orinda Sewer Renovations, Phase 6 project will replace/rehabilitate approximately 8.700 feet of 6 and 8 -inch sewers located in the public right of ways and easements. Location: City of Orinda Schedule & Bu Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $158,500 $0 $0 $0 $400,000 $0 $0 $0 Construction $500,000 $2,154,000 $100,000 $0 $1,058,500 $2,154,000 $100,000 $0 Design FY Total 108 Total $158,500 $400,000 $2,754,000 $3,312,500 Place for Image Lafayette Sewer Renovations, Phase 10 Project Name Lafayette Sewer Renovations, Phase 10 Program: Sub -Program: Project Manager: Dept/Division: Collection System Program Renovation Amanda Schmidt Engineering/Capital Projects Purpose: Replace or rehabilitate small -diameter sewers in order to prevent overflows, control future maintenance requirements, lower collection system infiltration, and to provide cost effective infrastructure replacement with excellent customer service to the public. History: The District's over 1,500 -mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/ or threat of structural collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry -weather collection system overflows. The District implemented a sewer renovation program in 1991. Since that time, an annual allowance for this renovation program has been included in the Capital Improvement Budget. Project No. Phase Priority Rank Ranking Score Concord % 8426 C Critical 75 0% Description: The Lafayette Sewer Renovations, Phase 10 project will replace or rehabilitate approximately 9,000 feet of various diameter sewer pipe located in the public right of ways and easements. Location: City of Lafayette Schedule & Budg Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $149,792 $0 $0 $0 $555,000 $0 $0 $0 Construction $420,000 $2,250,000 $155,208 $0 FY Total $1,124,792 $2,250,000 $155,208 $0 Design Total $149,792 $555,000 $2,825,208 $3,530,000 109 Place for Image Fairview Maltby Project Name Program: Sub -Program: Project Manager: Dept/Division: Pump Stations Upgrades Fairview Maltby Pump Stations Upgrades Collection System Program Pumping Stations Amanda Schmidt Engineering/Capital Projects Purpose: Provide equipment replacement and improvements to the Fairview and Maltby Pump Stations. History: In 2014, the Maltby pump station had an electrical failure with the Automatic Transfer Switch (ATS) used for emergency power. The District immediately replaced the ATS and evaluated the electrical system under the Arc Flash Project. In addition, there has been a comprehensive condition assessment of the Maltby and Fairview pump stations. Fairview is of the same vintage and was built to match. The condition assessments have identified electrical and mechanical equipment replacement. Description: This project will replace the Automatic Transfer switch at Fairview and include critical replacement work identified under the condition assessments. This project will also include recommendations provided by the Arc Flash project. Project No. Phase Priority Rank Ranking Score Concord % 8429 D Very High 55 0% Location: Fairview and Maltby Pumping Stations in Martinez Schedule & Budge Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $50,000 $0 $0 $0 $100,000 $50,000 $0 $0 $0 $300,000 $170,000 $0 $150,000 $350,000 $170,000 $0 Design Construction FY Total 110 Total $50,000 $150,000 $470,000 $670,000 Place for Image Schedule & Budg: Phase: Lafayette Sewer Renovation, Phase 11 Project Name Lafayette Sewer Renovation, Phase 11 Program: Sub -Program: Project Manager: Dept/Division: Collection System Program Renovation Amanda Schmidt Engineering/Capital Projects Purpose: Replace or rehabilitate small -diameter sewers in order to prevent overflows, control future maintenance requirements, lower collection system infiltration, and to provide cost effective infrastructure replacement with excellent customer service to the public. History: The District's over 1,500 -mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/ or threat of structural collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry -weather collection system overflows. The District implemented a sewer renovation program in 1991. Since that time, an annual allowance for this renovation program has been included in the Capital Improvement Budget. Project No. Phase Priority Rank Ranking Score Concord % 8430 P Critical 65 0% Description: This project will replace or rehabilitate existing sewers and associated infrastructure located in the public right of way and easements. The proposed sites will be coordinated with the City, other utilities, and the District's Collection System Operations Division. Location: City of Lafayette Prior FY's FY 16-17 FY 17-18 Future FY's Planning $150,000 $0 $0 $0 $0 $500,000 $0 $0 $0 $0 $3,000,000 $0 $150,000 $500,000 $3,000,000 $0 Design Construction FY Total Total $150,000 $500,000 $3,000,000 $3,650,000 111 Place for Image Collection System Master Plan Project Name Collection System Master Plan Program: Sub -Program: Project Manager: Collection System Program Regulatory Compliance/Planning/Safety Michael Penny Dept/Division: Engineering/Planning Purpose: To develop a comprehensive wastewater master plan that determines the future direction, capital improvement needs, and priorities for the District's wastewater treatment plant. History: The 2011 Plant of the Future visioning exercises completed as part of District Project 7287 — Treatment Plant Master Plan Update included recommendations for completing a comprehensive master plan to determine the needs and direction of the District. While the District has performed a number of planning and research studies/reports, the last treatment plant master plan was completed in 1987. Description: The TP Master Plan is one component of the Comprehensive Wastewater Master Plan. A key deliverable of the TP Master Plan will be a Capital Improvement Plan (CIP) for the next 20 -year planning horizon that provides the descriptions, rationale and estimated costs for the District's treatment plant capital improvement projects and on-going programs in order to address aging infrastructure, meet existing and anticipated regulatory requirements, accommodate planned growth, optimize energy use, and implement the District's vision for a "plant of the future" that is consistent with the District's Strategic Plan. Project No. Phase Priority Rank Ranking Score Concord % 8431 P Critical 70 100% Location: Entire service area. Schedule & Bu Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $530,000 $670,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $530,000 $670,000 $0 $0 Design Construction FY Total 112 Total $1,200,000 $0 $0 $1,200,000 Place for Image Schedule & Budg: Phase: Planning Design Construction FY Total South Orinda Sewer Renovation, Phase 6 Project Name South Orinda Sewer Renovation, Phase 6 Program: 5 ub-Program: Project Manager: Collection System Program Renovation Sasha Mestetsky Dept/Division: Engineering/Capital Projects Purpose: Replace or rehabilitate small -diameter sewers in order to prevent overflows, control future maintenance requirements, lower collection system infiltration, and to provide cost effective infrastructure replacement with excellent customer service to the public. History: The District's over 1,500 -mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/ or threat of structural collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry -weather collection system overflows. The District implemented a sewer renovation program in 1991. Since that time, an annual allowance for this renovation program has been included in the Capital Improvement Budget. Project No. Phase Priority Rank Ranking Score Concord % 8433 P Critical 65 0% Description: This project will replace or rehabilitate existing sewers and associated infrastructure located in the public right of way and easements. The proposed sites will be coordinated with the City, other utilities, and the District's Collection System Operations Division. All or a majority of sites will be located south of Highway 24 in Orinda. Location: City of Orinda Prior FY's FY 16-17 FY 17-18 Future FY's $0 $12,000 $138,000 $0 $0 $0 $500,000 $0 $0 $0 $0 $3,000,000 $0 $12,000 $638,000 $3,000,000 Total $150,000 $500,000 $3,000,000 $3,650,000 113 r • Place for Image IlL AI Collection System Urgent Projects Project Name Collection System Urgent Projects Program: 5 ub-Program: Project Manager: Collection System Program Renovation Sasha Mestetsky Dept/Division: Engineering/Capital Projects Purpose: This project will restore and protect sewers damaged or threatened during winter storms. In addition, the program will address structurally deficient sewers identified by CSO. History: During major storm events, sewers at various locations may be damaged or threatened. In some cases, landslides or soil erosion may undermine the sewers. The repair and restoration of these sewers is typically time sensitive. In addition, the District has embarked on an extensive investigation of the condition of its sewer system. Occasionally, sewers in very poor condition are identified and cannot wait for incorporation into the CIB/CIP. Such situations will be addressed under this program. Project No. Phase Priority Rank Ranking Score Concord % 8434 C Critical 75 0% Description: A standby contractor will be selected by the District team and be used for urgent or emergency needs for the collection system, recycled water, and pump station forcemains. Funding will be used from the CIB contingency account as needed. Location: Entire service area Schedule & Budg Phase: Planning Design Construction FY Total 114 Prior FY's FY 16-17 FY 17-18 Future FY's $0 $0 $0 $0 $50,000 $0 $0 $0 $0 $0 $0 $450,000 $50,000 $0 $0 $450,000 Total $0 $50,000 $450,000 $500,000 Place for Image Walnut Creek Renovations, Phase 12 Project Name Walnut Creek Renovations, Phase 12 Program: 5 ub-Program: Project Manager: Dept/Division: Collection System Program Renovation Sasha Mestetsky Engineering/Capital Projects Purpose: Replace or rehabilitate small -diameter sewers in order to prevent overflows, control future maintenance requirements, lower collection system infiltration, and to provide cost effective infrastructure replacement with excellent customer service to the public. History: The District's over 1,500 -mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/ or threat of structural collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry -weather collection system overflows. The District implemented a sewer renovation program in 1991. Since that time, an annual allowance for this renovation program has been included in the Capital Improvement Budget. Project No. Phase Priority Rank Ranking Score Concord % 8435 P Crtitical 65 0% Description: This project will replace or rehabilitate existing sewers and associated infrastructure located in the public right of way and easements. The proposed sites will be coordinated with the City, other utilities, and the District's Collection System Operations Division. Location: City of Walnut Creek Schedule & Budg Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $0 $150,000 $0 $0 $0 $0 $500,000 $0 $0 $0 $1,000,000 $2,100,000 $0 $150,000 $1,500,000 $2,100,000 Total $150,000 $500,000 $3,100,000 $3,750,000 115 Place for Image Moraga/Crossroads P5 Project Project Name Moraga/Crossroads P5 Project Program: Collection System Program Sub -Program: Project Manager: Dept/Division: Pumping Stations Amanda Schmidt Engineering/Capital Projects Purpose: To rehabilitate the Moraga and Crossroads Pump Stations as determined by ongoing condition assessments. History: Major equipment and components are becoming obsolete because replacement parts are not available. The Comprehensive Master Plan includes a condition assessment evaluation of pump station assets. Results from this effort will be used to scope rehabilitation efforts. Operations also identified the need to evaluate the electrical standby generators and adding grinders at Moraga Pump Station. Description: Based on condition assessment results and Operations input, this scope of this project may include: Replacing backup generators at both stations Adding grinders at Moraga Pump Station Replacement of Waukesha diesel engines at both stations Other work or equipment needs Location: Town of Moraga and City of Orinda. Project No. Phase Priority Rank Ranking Score Concord % 8436 D Very High 55 0% Schedule & Budget Phase: Planning Design Construction FY Total 116 Prior FY's $100,000 $0 $0 $100,000 FY 16-17 $0 $400,000 $0 $400,000 FY 17-18 $0 $0 $1,500,000 $1,500,000 Future FY's $0 $0 $0 $0 Total $100,000 $400,000 $1,500,000 $2,000,000 Place for Image Schedule & Budg: Phase: Martinez Sewer Renovation Phase 5 Project Name Martinez Sewer Renovation Phase 5 Program: Sub -Program: Project Manager: Dept/Division: Collection System Program Renovation Mark Wenslawski Engineering/Capital Projects Purpose: Replace or rehabilitate small -diameter sewers in order to prevent overflows, control future maintenance requirements, lower collection system infiltration, and to provide cost effective infrastructure replacement with excellent customer service to the public. History: The District's over 1,500 -mile collection system has pipe segments that range in age from new to more than 100 years old. Some of the pipe segments are at or near the end of their useful life as evidenced by their need for frequent maintenance, high rate of infiltration, and/ or threat of structural collapse. More than 300 miles of the small diameter sewers in the collection system were constructed prior to 1956. The methods and materials of construction used at that time do not currently perform well, and they are the source of over 90 percent of the dry -weather collection system overflows. The District implemented a sewer renovation program in 1991. Since that time, an annual allowance for this renovation program has been included in the Capital Improvement Budget. Project No. Phase Priority Rank Ranking Score Concord % 8437 D High 30 0% Description: This project will replace or rehabilitate existing sewers and associated infrastructure located in the public right of way and easements. The proposed sites will be coordinated with the City, other utilities, and the District's Collection System Operations Division. All or a majority of sites will be located south of Highway 24 in Orinda. Location: City of Martinez Prior FY's FY 16-17 FY 17-18 Future FY's Planning $150,000 $0 $0 $0 $0 $325,000 $175,000 $0 $0 $0 $3,000,000 $0 $150,000 $325,000 $3,175,000 $0 Design Construction FY Total Total $150,000 $500,000 $3,000,000 $3,650,000 117 Capital Improvement Program CIB Treatment Plant Program The Treatment Plant Program is comprised of four subprograms which include 1. Regulatory Compliance/ Planning/Safety, 2. One-time Renovations, 3. Reoccurring Renovation, and 4. Expansion. All projects in this program are summarized; including planned expenditures in the following table: FY 2016-17 CIB Treatment Plant Program Budget/Project Summary Estimated Expenditures Project Numbe 7285 Primary Treatment Renovation 7286 Centrifuge & Cake Pumps Budgeted to Date Prior Fiscal Years 1 $14,947,000 $14,897,000 $50,000 $200,000 $100,000 $500,000 $0 $2,000,000 Project Tota $14,947,000 $2,600,000 7291 Pump &Blower Bldg Seismic $695,000 $680,000 $2,900,000 $2,373,000 $5,953,000 Upgrade 7292 Switchgear Refurbishment- ph 2 $420,000 $300,000 $100,000 $1,020,000 $1,420,000 7297 Caustic Addition to MHF $1,351,600 $1,301,600 $50,000 $0 $1,351,600 7301 Treatment Plant Planning $2,698,000 $2,683,000 $350,000 $312,000 $3,345,000 7304 Instr & Controls PLC Upgrade $335,000 $325,000 $100,000 $408,000 $833,000 7310 Piping Renovations - phase 8 $1,570,000 $1,545,000 $25,000 $0 $1,570,000 7311 TP Safety Enhancement Ph4 $340,000 $339,000 $150,000 $201,000 $690,000 7312 Ash Facility Improvements $90,000 $80,000 $800,000 $1,320,000 $2,200,000 7314 Urgent Repairs $50,000 $40,000 $110,000 $450,000 $600,000 7315 Applied Research and Innovations $350,000 $239,000 $175,000 $1,128,000 $1,542,000 7317 Plant Control System Network $160,000 $80,000 $100,000 $350,000 $530,000 Upgrades 7319 Laboratory Upgrades & Repair $1,171,500 $426,777 $700,000 $44,723 $1,171,500 7320 Plant Energy Optimization $90,000 $80,000 $50,000 $1,270,000 $1,400,000 7322 Fire Protection System Ph2 $240,000 $85,000 $600,000 $255,000 $940,000 7324 Sub 16 Switchgear Replacement $600,000 $500,000 $2,144,000 $0 $2,644,000 7326 Equipment Replacement FY15- FY24 $606,000 $510,000 $460,000 $1,430,000 $2,400,000 7327 Headwork's Screening $900,000 $650,000 $1,600,000 $6,150,000 $8,400,000 7329 MHF Burner Upgrade $100,000 $30,000 $270,000 $550,000 $850,000 7330 Piping Renovation Phase 9 $0 $0 $241,000 $1,459,000 $1,700,000 7339 Plant Control System I/O Replacement $100,000 $50,000 $300,000 $3,950,000 $4,300,000 7341 WC / Grayson Creek Levee Rehab $0 $0 $150,000 $950,000 $1,100,000 7343 TP Master Plan $1,400,000 $1,300,000 $800,000 $100,000 $2,200,000 TBD Wet Scrubber Replacement- LT $0 $0 $400,000 $9,100,000 $9,500,000 Totals $28,414,100 $26,241,377 $13,125,000 $34,820,723 $74,187,100 118 Primary Treatment Renovation Project Name Primary Treatment Renovation Program: Sub -Program: Project Manager: Jason DeGroot Dept/Division: Engineering/Capital Projects Treatment Plant Program One -Time Renovation Purpose: This project will improve the reliability of the Primary Treatment area of the plant. History: Two of the four primary sedimentation tanks were constructed in the mid-1960s and the other two tanks were constructed in the mid-1970s as part of the 5A expansion project. Some components are corroding and nearing the end of their service life. Description: Renovate or replace the spray water and air supply pipelines at the primary sedimentation tanks. The primary scum collection system will be renovated with new scum sprays, new helical scum skimmers and drives, and a stainless steel scum hopper for Tanks 1 and 2. The scum thickening unit in the Solids Conditioning Building will also be replaced. Other primary tank improvements include installation of new baffles, replacing chain drives, sludge flight drive shafts and bearings, concrete repairs, upgrading hand railings, replacing the primary level control valve, replacing the primary MCCs and PLC panels, and installing new grit washing equipment. Refurbishment of Primary Effluent (PE) Pump 1 and PE Pump 2 are included in the project. This project is currently under construction and is anticipated to be completed in FY 2015-16. Project No. Phase Priority Rank Ranking Score Concord % C Critical 90 100% pav Place for Image Location: Primary Tanks, SCB, and Pump & Blower Building Schedule & Budg Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 $0 $0 $0 $0 $0 $0 $14,897,000 $50,000 $0 $14,897,000 $50,000 $0 Future FY's $0 $0 $0 $0 Total $0 $0 $14,947,000 $14,947,000 119 Centrifuge and Cake Pump Upgrades Project Name Centrifuge and Cake Pump Upgrades Program: Sub -Program: Project Manager: Dept/Division: Treatment Plant Program One -Time Renovation Craig Mizutani Engineering/ Capital Projects Purpose: The purpose of this project is to improve solids capture and reliability of the sludge dewatering equipment. History: The existing centrifuges and cake pumps will have been in service for more than 25 years. The design life of rotating equipment is generally around 15 years. While routine rotation of the operational and stand- by centrifuge helps increase the operating lifespan, Operations can expect more frequent and extensive O&M requirements as the centrifuges and cake pumps continue to age. Historical plant data has shown that that the solids capture has decreased throughout the years. In addition, as centrifuge design and materials of construction continue to develop, the next generation of centrifuges is expected to last longer, cost less to operate, and produce a drier sludge, which would result in less furnace fuel to burn. Project No. Phase Priority Rank Ranking Score Concord % 1 P Very High 50 100% Place for Image Description: This project will use the information gathered under the Solids Handling Evaluation project as well as recent pilot test data to make improvements to the dewatering equipment and process for construction. Additional, related tasks will be included in this project as appropriate. A portion of this project, centrifuge replacement, is being considered under the Plant Energy Optimization project. Location: Solids Conditioning Building Schedule & Budget Phase: Prior FY's FY 16-17 FY 17-18 Planning $100,000 $50,000 $0 $0 $450,000 $0 $0 $0 $1,000,000 $100,000 $500,000 $1,000,000 Design Construction FY Total 120 Future FY's $0 $0 $1,000,000 $1,000,000 Total $150,000 $450,000 $2,000,000 $2,600,000 Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $0 $0 $0 $680,000 $15,000 $0 $0 $2,885,000 $2,373,000 $680,000 $2,900,000 $2,373,000 $0 $0 $0 $0 Project No. Phase Priority Rank Ranking Score Concord % D Very High 55 100% Place for Image Pump & Blower Building Seismic Upgrades Project Name Pump & Blower Building Seismic Upgrades Program: Sub -Program: Project Manager: Dept/Division: Treatment Plant Program One -Time Renovation Jason DeGroot Engineering/Capital Projects Purpose: Improve the seismic safety of the Pump & Blower Building. History: In January 2008, California adopted the 2007 California Building Code (2007 CBC). Among the updates in the 2007 CBC were significant changes to seismic design. In 2009 a seismic evaluation was completed of treatment plant facilities (Martinez Wastewater Treatment Plant Seismic Vulnerability Assessment of Selected Facilities, December 2009). Included in the evaluation are recommendations to bring the Pump & Blower Building in line with current seismic design standards. Description: Make seismic improvements to the Pump & Blower Building as recommended by the Vulnerability Assessment. Location: Pump & Blower Building Schedule & Budget Total $0 $695,000 $5,258,000 $5,953,000 121 Switchgear Refurbishment, Phase 2 Project Name Switchgear Refurbishment, Phase 2 Program: Sub -Program: Project Manager: Dept/Division: Treatment Plant Program One -Time Renovation Mark Cavallero Operations/ Plant Maintenance Purpose: Refurbish electrical switchgear to maintain the electrical reliability of the treatment plant. History: The electrical switchgear throughout the plant was installed in the 1970s and has been well maintained using preventative techniques, such as thermographic imaging, to identify potential problems and correct them prior to failure. Inspections in 2003 and 2004 showed that many of the trip units on the circuit breakers required replacement. Circuit breakers have been sent out for Class 1 reconditioning and trip unit replacement on an as -needed basis. Description: The remaining 480v circuit breakers (approx. 66, Westinghouse/Cutler-Hammer), will be refurbished over a five-year period. Work also includes replacement of the 2400v breakers at Substation 52, Substation 40, and air breakers at Substation 82. The labor and coordination will be performed by District maintenance staff with support from consultants when electrical design work is needed. Project No. Phase Priority Rank Ranking Score Concord % 1 C Critical 70 100% Place for Image Location: Entire Treatment Plant chedule & Budg Phase: Planning Design Construction FY Total 122 Prior FY's FY 16-17 FY 17-18 $0 $0 $0 $0 $0 $0 $300,000 $100,000 $250,000 $300,000 $100,000 $250,000 Future FY's $0 $0 $770,000 $770,000 Total $0 $0 $1,420,000 $1,420,000 Wet Scubber Caustic Injection System Project Name Program: Sub -Program: Project Manager: Wet Scubber Caustic Injection System Treatment Plant Program One -Time Renovation Craig Mizutani Dept/Division: Engineering/ Capital Projects Purpose: Replace the wet and dry scrubbers on each Multiple Hearth Furnace (MHF). History: The Solids Handling Facilities Plan was updated in 2005. Incinerator Rx and Industrial Furnace Company (IFCO) determined that the MHFs were in excellent condition and could last 20 or more years with current O&M practices. Included in the recommendations was that both the dry cyclone and the wet particulate scrubber were showing signs of wear and could use updating or replacement. Operations staff has also reported problems with the scrubber piping. Description: Due to the recent emission regulations, a new Caustic Addition System will be installed to help meet proposed emission limits by the Air Board. Location: Solids Conditioning Building Project No. Phase C Priority Rank Ranking Score Concord % Critical 65 100% Place for Image Schedule & Budge Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $75,000 $0 $0 $250,000 $0 $0 Construction $976,600 $50,000 $0 $1,301,600 $50,000 $0 Design FY Total $0 $0 $0 $0 Total $75,000 $250,000 $1,026,600 $1,351,600 123 Treatment Plant Project Name Program: Sub -Program: Project Manager: Dept/Division: Planning Treatment Plant Planning Treatment Plant Program Regulatory Compliance/Planning/Safety Dan Frost Engineering/Planning and Development Services Purpose: To fund ongoing feasibility and planning studies needed to address regulatory initiatives to maintain permit compliance and optimizations to improve the reliability and performance of existing treatment plant processes and facilities. History: As wastewater regulations continue to develop and as new wastewater treatment technologies becomes available, process modifications may be required in the Treatment Plant. This project included the Suisun Bay modeling results, Facility Plan & Site Characterization Report and associated studies submitted to satisfy the District's NPDES permit. Description: This project will include the District's efforts to support the BACWA Regional Optimization and Upgrade Study that is being implemented to satisfy the 2014 Nutrient Watershed Permit, evaluation of treatment plant process modifications and optimizations, and other treatment plant planning related studies. Project No. Phase Priority Rank Ranking Score Concord % ilr- P Critical 85 100% Place for Image i im Location: Entire Treatment Plant Schedule & Budg Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $2,683,000 $350,000 $312,000 $0 $0 $0 $0 $0 $0 $2,683,000 $350,000 $312,000 Design Construction FY Total 124 $0 $0 $0 $0 Total $3,345,000 $0 $0 $3,345,000 Place for Image li, PLC System Upgrades Project Name Program: Sub -Program: Project Manager: PLC System Upgrades Treatment Plant Program One -Time Renovation Chuck Burnash Dept/Division: Plant Operations/Operations Purpose: Upgrade Programmable Logic Controller (PLC) system to current technology for increased performance and improved compatibility. History: The first PLCs were installed in the treatment plant in 1986. The number of PLCs has increased from the original 2 to more than 30. Programming software for the newer PLCs no longer runs efficiently on the older programming units. Description: This project will continue to upgrade the treatment plant's PLC system by: m Providing and upgrading hardware and software necessary to maintain the PLC application. Replacing older computers with newer ones capable of running current software. m Upgrading older PLC models to maintain compatibility with new equipment. Project No. Phase Priority Rank Ranking Score Concord % C Very High 50 100% Location: Entire Treatment Plant Schedule & Budget Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 $0 $0 $0 $96,669 $0 $0 $0 $228,331 $100,000 $100,000 $325,000 $100,000 $100,000 $308,000 Future FY's $0 $308,000 Total $0 $96,669 $736,331 $833,000 125 Piping Renovations, Phase 8 Project Name Program: Sub -Program: Project Manager: Piping Renovations, Phase 8 Treatment Plant Program Recurring Renovation Brad Leidecker Dept/Division: Engineering/Capital Projects Purpose: To improve the reliability of the piping systems above and below ground in the treatment plant by inspection, renovation, and replacement where required. History: During the 5A project, numerous piping systems were installed throughout the treatment plant. These pipes carry the processed wastewater, sludge, steam, air, and other utility services between the various sections of the plant. These pipes have been in place for more than 40 years. Some of these pipes are leaking due to corrosion. The first seven phases of this program renovated or replaced various piping systems. Description: This phase of the Treatment Plant Piping Renovations Project will include previously identified piping renovations and replacement work not yet included in a construction project. Project No. Phase Priority Rank Ranking Score Concord % C Critical 70 100% Place for Image Location: Entire Treatment Plant Schedule & Budg Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $86,917 $0 $0 $203,160 $0 $0 Construction $1,254,923 $25,000 $0 $1,545,000 $25,000 $0 Design FY Total 126 $0 $0 $0 $0 Total $86,917 $203,160 $1,279,923 $1,570,000 Treatment Plant Project Name Program: Sub -Program: Project Manager: Dept/Division: Safety Enhancements Phase 4 Treatment Plant Safety Enhancements Phase 4 Treatment Plant Program Regulatory Compliance/Planning/Safety Brad Leidecker Engineering/Capital Projects Purpose: To enhance plant safety through identification of safety concerns, repairs and capital improvements. History: The District and the treatment plant have very pro- active safety programs that are administered by separate committees. These committees are responsible for addressing safety concerns as identified by the craftsmen, or to respond to the ever- changing regulatory requirements. Often this response will require construction of a capital project. The first three phases of this program addressed various safety repairs and improvements. Description: This project is currently being bid in FY 2014-15 and is scheduled for construction in early FY 2015. The project will include a hazardous waste facility improvements and other safety related items. In addition, the project will be coordinated with safety improvements identified in the general improvements program, the costs will be assigned to its perspective program. Project No. Phase C Priority Rank Ranking Score Concord % Critical 65 100% Place for Image Location: Entire Treatment Plant Schedule & Budge Phase: Prior FY's FY 16-17 FY 17-18 Planning $41,442 $0 $0 $150,000 $0 $0 Construction $147,558 $150,000 $201,000 $339,000 $150,000 $201,000 Design FY Total Future FY's $0 $0 $0 $0 Total $41,442 $150,000 $498,558 $690,000 127 Ash Facility Improvements Project Name Program: Sub -Program: Project Manager: Ash Facility Improvements Treatment Plant Program Regulatory Compliance/Planning/Safety Craig Mizutani Dept/Division: Engineering/Capital Projects Purpose: This project will improve ash containment within the Solids Conditioning Building (SCB). History: The ash system collects the ash at the bottom of the furnaces and conveys it to storage bins located on the third floor northwest corner of the SCB. A vacuum method is used to transmit the ash through the SCB where it is collected by filters and storage cyclones prior to disposal. The filter and storage location is not isolated from other processes within the SCB, so ash may on occasion spreads through the building, resulting in potentially expensive and difficult housecleaning. Description: This project will make improvements to limit the amount of ash dispersed within the SCB and contain the storage area. In addition, this project will evaluate and construct improvements to meet regulatory requirements as coordinated with the Comprehensive Wastewater Master Plan. Project No. Phase P Priority Rank Ranking Score Concord % Critical 65 100% Place for Image Location: Solids Conditioning Building Schedule & Budge Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $80,000 $0 $0 $0 $300,000 $0 $0 $500,000 $1,320,000 $80,000 $800,000 $1,320,000 Design Construction FY Total 128 $0 $0 $0 $0 Total $80,000 $300,000 $1,820,000 $2,200,000 Urgent Repairs Blanket Contract Project Name Program: Sub -Program: Project Manager: Urgent Repairs Blanket Contract Treatment Plant Program Recurring Renovation Craig Mizutani Dept/Division: Engineering/ Capital Projects Purpose: Provide staff the capability to perform immediate electrical, mechanical, and other miscellaneous repairs within the treatment plant. History: Projects included in this category are those that cannot be completed by the District's Plant Maintenance staff, and cannot afford the longer timeline to be incorporated in the budget process. This project will include bidding and executing a blanket contract that will allow the District to use a contractor for urgent construction work. Description: Urgent treatment plant projects which require immediate repairs or replacement may arise anytime during the current fiscal year. These projects may be triggered by: Equipment or process piping failure Comply with regulatory or code issues Impacts operational procedures or process Safety hazards Budget for this work will be paid for using CIB Contingency. Location: Entire Treatment Plant Project No. Phase Priority Rank Ranking Score Concord % C Critical 80 100% • Place for Image Schedule & Bu Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $40,000 $10,000 $0 $0 $0 $0 $0 $100,000 $150,000 $40,000 $110,000 $150,000 Design Construction FY Total $0 $0 $300,000 $300,000 Total $50,000 $0 $550,000 $600,000 129 Applied Research & Innovations Project Name Program: Sub -Program: Project Manager: Dept/Division: Applied Research & Innovations Treatment Plant Program Regulatory Compliance/Planning/Safety Dan Frost Engineering/Planning and Development Services Purpose: To fund applied research and development of key technologies, processes, and innovations. History: In 2013, the District completed a Nutrient Visioning Plan: Cutting -Edge Nitrogen Removal Technology Review that identified the zeolite anammox process and four other processes as preferred cutting-edge nutrient removal technologies recommended for further consideration and piloting. Description: This project includes piloting of technologies, processes, and innovations (such as the zeolite-anammox process or other processes) that have the potential to reduce the District's long-term capital improvement and operations and maintenance costs, address future regulatory requirements, and that also supports the District's goal to embrace innovation and to be a leader in the wastewater industry. Project No. Phase P Priority Rank Ranking Score Concord % Very High 50 100% Place for Image Currently, the District is piloting Phase 1 of the zeolite-anammox process to demonstrate proof of treatment concept. If the results of Phase 1 are promising, the District may decide to proceed with Phase 2 of the pilot project. Phase 2, if implemented, would include a larger scale pilot that would be used to demonstrate process and site-specific viability, generate design criteria, confirm nutrient removal performance, and estimate capital and operating costs if the zeolite- anammox process were to be implemented full-scale. Other pilot tests such as screenings, sludge screenings, or disinfection new technologies, centrifuges, and other treatment process technologies may be contemplated and initiated under this project. Location: Entire Treatment Plant Schedule & Budge Phase: Planning Design Construction FY Total 130 Prior FY's $239,000 $0 $0 $239,000 FY 16-17 $175,000 $0 $0 $175,000 FY 17-18 $200,000 $0 $0 $200,000 Future FY's $928,000 $0 $0 $928,000 Total $1,542,000 $0 $0 $1,542,000 Plant Control System Network Upgrades Project Name Program: Sub -Program: Project Manager: Dept/Division: Plant Control System Network Upgrades Treatment Plant Program One -Time Renovation Nate Morales Operations/ Plant Operations Purpose: Upgrade the Plant Control System Ethernet Network to Industrial Ethernet standards. H istory: In 2006 the District's plant installed a new Ethernet based supervisory control and data acquisition (SCADA) system. At the time the SCADA system was installed Ethernet was limited to the servers only and was redundant. Over time the Ethernet system expanded to the entire plant but the redundancy was not maintained. Currently, the primary path for plant data traffic runs over the Ethernet system that is neither redundant nor sufficiently reliable to meet control system standards. Description: Industrial Ethernet defines a set of standards for redundancy and reliability that are required for failsafe operation. This project will install and configure industrial type network switches, and install fiber optic lines to meet the standards for Industrial Ethernet for the plant control system. Additionally software shall be installed to allow remote programming and maintenance. Project No. Phase C Priority Rank Ranking Score Concord % Very High 50 100% Place for Image Location: Entire Treatment Plant Ir Schedule & Budget Phase: Planning Design Construction FY Total Prior FY's FY 16-17 $0 $0 $0 $0 $80,000 $100,000 $80,000 $100,000 FY 17-18 $0 $0 $100,000 $100,000 Future FY's $0 $0 $250,000 $250,000 Total $0 $0 $530,000 $530,000 131 Laboratory Upgrades and Repair Project Name Laboratory Upgrades and Repair Program: Sub -Program: Project Manager: Treatment Plant Program Recurring Renovation Craig Mizutani Dept/Division: Engineering/ Capital Projects Purpose: Repair, replace, and/or upgrade the treatment plant laboratory equipment. The laboratory is a critical component to regulatory reporting and the equipment used in this facility is specialized and requires climate control. History: The District's laboratory was built in 2001 and operates several critical systems to maintain the facilities required to conduct testing. Such systems include hot water storage and distribution, compressed air, temperature control (heating and cooling), chiller, ventilation, hoods, vacuum system, and DI water. As these systems age, repairs and/or replacements/upgrades will be needed so that the laboratory remains operational. Project No. Phase Priority Rank Ranking Score Concord % ilr- C Critical 65 100% M. a Place for Image Description: This is a multi-year program to repair and upgrade the laboratory. Project work identified to date includes the following: m Hot water heat exchangers and tanks are corroded. HVAC control systems are obsolete and outdated. m DI tank may need replacement/ upgrade.. Location: Laboratory Schedule & Budget Phase: Planning Design Construction FY Total 132 Prior FY's FY 16-17 FY 17-18 $0 $0 $0 $100,000 $0 $0 $326,777 $700,000 $44,723 $426,777 $700,000 $44,723 Future FY's $0 $0 $0 $0 Total $0 $100,000 $1,071,500 $1,171,500 Plant Energy Optimization Project Name Plant Energy Optimization Program: Sub -Program: Project Manager: Treatment Plant Program Recurring Renovation Craig Mizutani Dept/Division: Engineering/ Capital Projects Purpose: Increase energy efficiency and decrease greenhouse gas emissions for the treatment plant. History: The implementation of AB 32 causes energy consumers to evaluate their energy use and develop carbon offsetting efficiencies to comply with new regulations. A number of potential energy efficiency projects are being refined. Many of these concepts are from the 2010 HDR report "AB 32 Compliance and Energy Optimization Evaluation." These project concepts require further evaluation and an understanding of potential implementation issues before implementation can move forward. Description: Evaluate proposed energy optimization projects. Many projects include rebates from PG&E. Staff will coordinate work with PG&E in order to obtain rebates and improve the payback of implemented projects. Current proposals to be evaluated include installing variable frequency drives on the furnace's combustion air blowers. As other energy efficiency proposals are made they will be included in this evaluation project. Project No. Phase Priority Rank Ranking Score Concord % P Very High 55 100% Place for Image Location: Entire Treatment Plant Schedule & Budg Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $80,000 $50,000 $0 $0 $0 $250,000 $0 $0 $0 $80,000 $50,000 $250,000 Design Construction FY Total $0 $0 $1,020,000 $1,020,000 Total $130,000 $250,000 $1,020,000 $1,400,000 133 Fire Protection Phase 2 Project Name Program: Sub -Program: Project Manager: Fire Protection Phase 2 Treatment Plant Program Regulatory Compliance/ Planning/ Safety Craig Mizutani Dept/Division: Engineering/ Capital Projects Purpose: To repair, upgrade, or replace the main treatment plant fire alarm system. History: The majority of the fire alarm system was built in the late 1970s and the control panel was upgraded in the early 2000s. However, the wiring and devices on the system continue to be problematic and is in constant need of repair. Repairs to the system has become extremely complex and difficult, therefore a long term fix is needed. Description: At this stage, staff will evaluate the existing system and provide recommendations for full replacement in compliance with the authority having jurisdiction, the local fire department. The construction budget will be revised during the design stage, if needed. Location: Entire Treatment Plant Project No. Phase D Priority Rank Ranking Score Concord % Critical 65 100% Place for Image Schedule & Budge Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $40,000 $0 $0 $45,000 $155,000 $0 $0 $445,000 $255,000 $85,000 $600,000 $255,000 Design Construction FY Total 134 $0 $0 $0 $0 Total $40,000 $200,000 $700,000 $940,000 Substation 16 Switchgear Replacement Project Name Substation 16 Switchgear Replacement Program: Treatment Plant Program Sub -Program: Project Manager: Craig Mizutani Dept/Division: Engineering/ Capital Projects One Time Renovation Purpose: Refurbish and replace critical switchgear and associated equipment that provides electrical service to main areas of the Treatment Plant. History: The switchgear serving the Headworks (Substation 16) was installed in the early 1990s and is comprised of equipment that had a short production run. The ABB equipment is obsolete and spare parts have become rare. Recent issues with the circuit breakers have revealed that they will only become harder to service. The CDM final report recommended replacing the swtichgear in its entirety to assure reliable service from the influent pumps for the plant. Description: The switchgear serving the Headworks (Substation 16) will be replaced. Work includes removal of the existing switchgear and modifications of the building and support facilities as necessary for the installation. The work will be performed by an outside contractor with support from District Staff and consultants. Project No. Phase D Priority Rank Ranking Score Concord % Critical 65 100% Place for Image Location: Headworks Facility Schedule & Budge Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 $0 $0 $0 $500,000 $0 $0 $0 $2,140,000 $200,000 $500,000 $2,140,000 $200,000 Future FY's $0 $0 $0 $0 Total $0 $500,000 $2,140,000 $2,140,000 135 Equipment Replacement Project Name Equipment Replacement Program: Sub -Program: Project Manager: Treatment Plant Program Recurring Renovation Craig Mizutani Dept/Division: Engineering/Capital Projects Purpose: Reduce maintenance costs, increase reliability, and improve operations through replacement or reconditioning of technologically obsolete, worn-out, maintenance intensive equipment, or equipment that is no longer supported by its manufacturer. History: The initial work on this project assembled a list of current equipment; verified equipment name, number, and size; acquired design records; and estimated equipment life and replacement cost. Several major pieces of equipment are reaching the end of their service life and require replacement/upgrading or reconditioning. This project will be coordinated with the Asset Management program. Reduce maintenance costs, increase reliability, and improve operations through replacement or reconditioning of technologically obsolete, worn-out, maintenance intensive equipment, or equipment that is no longer supported by its manufacturer. Project No. Phase Priority Rank Ranking Score Concord % C Critical 80 100% Place for Image Description: The following are examples of equipment included in the project: 3WHP pumps, Influent Pump Wear Rings, 3WLP Pump impellers/parts, Steam system traps/accessories/piping, Headworks A/C, MCB A/C, Sub 40 A/C, UV lampbank components, MHF emission monitors, pumps, generators, and other equipment identified through asset management, maintenance, and operations groups. Location: Entire Treatment Plant Schedule & Budg Phase: Planning Design Prior FY's FY 16-17 FY 17-18 Future FY's $0 $0 $0 $0 $0 $0 Construction $510,000 $460,000 $350,000 $510,000 $460,000 $350,000 FY Total 136 $0 $0 $1,080,000 $1,080,000 Total $0 $0 $2,400,000 $2,400,000 Headworks Screening Upgrade Project Name Headworks Screening Upgrade Program: Sub -Program: Project Manager: Treatment Plant Program One Time Renovation Brad Leidecker Dept/Division: Engineering/ Capital Projects Purpose: To separate and remove screenings and plastics from wastewater and/or sludge. History: The treatment plant's current screenings operation utilizes coarse bar screens at the headworks to separate screenings. The screenings then are processed by grinders and reintroduce immediately downstream of the screens. This operation does not remove any of the plastics in the wastewater which has contributed to fouling of numerous liquid and solids stream processes and are suspected to potentially contribute to the upcoming HCL furnace emission regulations. Removal of screenings will protect downstream treatment plant facilities, extend equipment life and reduce maintenance of equipment. Project No. Phase Priority Rank Ranking Score Concord % D Critical 65 100% Place for Image 1m 1 Description: The project will investigate the current headworks screening operation and recommend the most strategic and cost effective improvements. Following this phase, the project will include design and construction of improvements to implement the recommendations. Location: Headworks Facility Schedule & Budg Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $200,000 $0 $0 $450,000 $150,000 $0 $0 $1,450,000 $6,000,000 $650,000 $1,600,000 $6,000,000 Design Construction FY Total $0 $0 $150,000 $150,000 Total $200,000 $600,000 $7,600,000 $8,400,000 137 Schedule & Budg: Phase: Planning Design Construction FY Total 138 MHF Burner Upgrade Project Name Program: Sub -Program: Project Manager: MHF Burner Upgrade Treatment Plant Program One -Time Renovation Craig Mizutani Dept/Division: Engineering/ Capital Projects Purpose: Improve the operational flexibility of the existing multiple hearth furnaces to meet compliance parameters. Improve utilization of Landfill gas, reduce energy consumption. History: The furnaces were constructed during the early 1970s and made operational in 1985. They were originally designed to burned commingled solid waste and sludge; however, they have historically only burned sludge. As a result, some of the burners are not optimally sized for the furnace loading. This results in difficulty maintaining proper temperatures in the furnace. In addition, the existing burners do not allow optimization of landfill gas use. In addition, some of the burners, mounts, piping and associated equipment are reaching the end of their useful lives and need to be replaced. The fuel gas piping Project No. Phase Priority Rank Ranking Score Concord % P Critical 65 100% Place for Image to the burners has developed leaks that require continued attention in order to meet BAAQMD leak guidelines. Description: The original gas fuel system piping will be replaced using welded joints, and a new diesel fuel system will be added as an additional fuel source (to allow furnace operations during an emergency. The project will include replacement of 2 to 4 of the top hearth burners (8 MMBtu/hr) with smaller low NOx/High mix burners (2 MMBtu/hr). To provide better temperature control to comply with 129 regulations. Modernizing the control system to economize fuel consumption and realize cost savings. Location: Solids Conditioning Building Prior FY's $30,000 $0 $0 $0 FY 16-17 $0 $150,000 $120,000 $270,000 FY 17-18 $0 $0 $550,000 $550,000 Future FY's $0 $0 $0 $0 Total $30,000 $150,000 $670,000 $850,000 Piping Renovation, Phase 9 Project Name Program: Sub -Program: Project Manager: 'ping Renovation, Phase Treatment Plant Program Recurring Renovation Brad Leidecker Dept/Division: Engineering/ Capital Projects Purpose: To improve the reliability of the piping systems above and below ground in the treatment plant by inspection, renovation, and replacement where required. History: During the 5A project, numerous piping systems were installed throughout the treatment plant. These pipes carry processed wastewater, sludge, steam, air, and other utility services between the various sections of the plant and have been in place for more than 40 years. Some of these pipes are leaking due to corrosion. The first eight phases of this program renovated or replaced various piping systems. Description: This phase of the Treatment Plant Piping Renovations Project will include previously identified piping renovations and replacement work not yet included in a construction project. Project No. Phase P Priority Rank Ranking Score Concord % Very High 55 100% Place for Image Location: Entire Treatment Plant Schedule & Budget Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $0 $0 $0 $0 $241,000 $0 $0 $0 $1,359,000 $0 $241,000 $1,359,000 $0 $0 $100,000 $100,000 Total $0 $241,000 $1,459,000 $1,700,000 139 Plant Control System I/O Replacement Project Name Program: Sub -Program: Project Manager: Plant Control System I/O Replacement Treatment Plant Program One -Time Renovation Nate Morales Dept/Division: Operations/ Plant Operations Purpose: Upgrade the Treatment Plant Programmable Logic Controller Input and Output (I/O) cards and associated hardware with current technology to maintain reliable operation and vendor support. History: The first treatment plant I/O was installed in 1986. The number of I/O cards in use has increased from relatively few to nearly 1,800. Approximately 1,100 of these are currently obsolete. Replacement units cannot be purchased from the manufacturer nor are they fully supported. The District maintains an inventory of over 100 spare I/O cards to replace units as they fail. Description: This project will replace and update the treatment plant's obsolete I/O cards along with their mounting racks, communication modules, and power supplies with modern, fully supported products. Project No. Phase P Priority Rank Ranking Score Concord % Very High 55 100% Place for Image Location: Entire Treatment Plant Schedule & Budge Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $50,000 $150,000 $0 $0 $150,000 $450,000 $0 $0 $400,000 $50,000 $300,000 $850,000 Design Construction FY Total 140 $0 $0 $3,100,000 $3,100,000 Total $200,000 $600,000 $3,500,000 $4,300,000 Walnut Creek/Grayson Creek Levee Rehabilitation Project Name Walnut Creek/Grayson Creek Levee Rehabilitation Program: Sub -Program: Project Manager: Dept/Division: Treatment Plant Program Regulatory Compliance/Planning/Safety Dan Frost Engineering/Planning and Development Services Purpose: To reduce the risk of flood damage to the treatment plant through a collaborative project led by the Contra Costa County Flood Control and Water Conservation District (FCD). History: The treatment plant site is bordered by Walnut and Grayson Creeks with levees that were built by the FCD and US Army Corps of Engineers (USACE), and currently owned and maintained by the FCD. Overtopping of the levees could disable the treatment plant and result in significant facility damages, significantly impact the environment due to discharge of untreated sewage, and impair the local economy. In 2007, the FCD implemented an interim flood control measure to desilt the lower Walnut Creek channel and raise the western levees of Walnut and Grayson Creeks. Based on recent modeling, the levees currently provide protection from a 30 -year storm. The current flood protection standard by the California Department of Water Resources is to provide protection against a 200 -year water surface with 3 feet of freeboard and to consider the potential for sea level rise and climate change. Project No. ilr- Phase P Priority Rank High Ranking Score 40 Concord % 100% Place for Image ■ il Description: Due to the layout of treatment facilities as well as the critical nature of them, this project will maximize the treatment plant's flood protection level for a 500 -year water surface with 3 feet of freeboard. The FCD will be the lead agency on this project and the District will provide support as needed for design review and construction coordination. The FCD and the District have agreed to equally share the estimated project cost of $2.2M. The FCD is pursuing grant funding for the project to reduce the costs to the FCD and the District. The District anticipates accepting and storing soil on District buffer property that can be used as levee material in order to provide in-kind contributions of approximately $0.5M. The District will continue to evaluate in-kind financial contributions. Location: Entire Treatment Plant Schedule & Bud Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 $0 $0 $0 $0 $0 $0 $0 $150,000 $900,000 $0 $150,000 $900,000 Future FY's $0 $0 $50,000 $50,000 Total $0 $0 $1,100,000 $1,100,000 141 TP Master Plan Project Name Program: Sub -Program: Project Manager: Dept/Division: Master Plan Treatment Plant Program Regulatory Compliance/Planning/Safety Dan Frost Engineering/Planning and Development Services Purpose: To develop a comprehensive wastewater master plan that determines the future direction, capital improvement needs, and priorities for the District's wastewater treatment plant. History: The 2011 Plant of the Future visioning exercises completed as part of District Project 7287 — Treatment Plant Master Plan Update included recommendations for completing a comprehensive master plan to determine the needs and direction of the District. While the District has performed a number of planning and research studies/reports, the last comprehensive treatment plant master plan was completed in 1987. Description: The TP Master Plan is one component of the Comprehensive Wastewater Master Plan. A key deliverable of the TP Master Plan will be a Capital Improvement Plan (CIP) for the next 20 -year planning horizon that provides the descriptions, rationale and estimated costs for the District's treatment plant capital improvement projects and on-going programs in order to address aging infrastructure, meet existing and anticipated regulatory requirements, accommodate planned growth, optimize energy use, and implement the District's vision for a "plant of the future" that is consistent with the District's Strategic Plan. Project No. Phase Priority Rank Ranking Score Concord % ilr- P Critical 85 100% Place for Image Location: Entire Treatment Plant Schedule & Bu Phase: Prior FY's FY 16-17 FY 17-18 Planning $1,300,000 $800,000 $100,000 $0 $0 $0 $0 $0 $0 $1,300,000 $800,000 $100,000 Design Construction FY Total 142 Future FY's $0 $0 $0 $0 Total $2,200,000 $0 $0 $2,200,000 Wet Scrubber Replacement -LT Project Name Wet Scrubber Replacement Program: Treatment Plant Program Sub -Program: Project Manager: Craig Mizutani Dept/Division: Engineering/Capital Projects One -Time Renovation Purpose: Replace the wet scrubbers on each Multiple Hearth Furnace (MHF). History: The Solids Handling Facilities Plan was updated in 2005. Incinerator Rx and Industrial Furnace Company (IFCO) determined that the MHFs were in excellent condition and could last 20 or more years with current O&M practices. Included in the recommendations was that both the dry cyclone and the wet particulate scrubber were showing signs of wear and could use updating or replacement. Operations staff has also reported problems with the scrubber piping. Description: Replace the wet scrubber and their associated piping and equipment on the MHFs. This project will also inlude potential side stream treatment of the scrubber water as needed to meet operational and regulatory requirements. Project No. Phase C Priority Rank Ranking Score Concord % Critical 65 100% Place for Image Location: Solids Conditioning Building Schedule & Budge Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $0 $100,000 $0 $0 $300,000 $300,000 $0 $0 $0 $300,000 $0 $400,000 $0 $850,000 $0 $850,000 Total $100,000 $600,000 $8,800,000 $9,500,000 143 Capital Improvement Program CIB-General Improvements Program The General Improvements Program is primarily concerned with the property, administrative buildings, and management information systems, including information technologies (IT), asset management, as well as equipment and vehicle needs of the District. This program is comprised of four subprograms which include 1. Equipment & Vehicle Replacement, 2. Management Information Systems, 3. General Projects, and 4. Asset Management. All projects in the General Improvements Program are summarized; including planned expenditures in the following table: FY 2016-17 CIB Collection System Program Budget/Project Summary Estimated Expenditures 8207 8227 8230 8232 8233 8234 8236 8237 8238 8239 8240 8242 8243 8516 8517* General Security and Access GDI Treatment Plant Capital Legal Services GDI SMMS Replacement CSOD Facility Improvements HOB Improvements District Easements Buffer and Rental Improvements Asset Management POD Office Improvements IT Development CMMS Replacement Server Room Relocation District Equipment Acquisition Vehicle Replacement Program Totals *New project included in CIB. 144 Budgeted to Date $60,000 $265,000 $210,000 $852,000 $200,000 $972,000 $140,000 $279,000 $1,200,000 $490,000 $2,000,000 $558,000 $200,000 $450,000 $0 $7,876,000 Prior Fiscal Years $47,616 $222,444 $115,495 $847,335 $173,697 $525,000 $128,750 $254,295 $1,189,185 $459,590 $1,538,800 $540,980 $85,000 $400,000 $0 $6,528,187 $0 $42,556 $20,000 $4,665 $25,000 $447,000 $15,000 $50,000 $800,000 $120,410 $900,000 $134,020 $650,000 $76,000 $524,000 $3,808,651 AI $202,384 $160,000 $74,505 $0 $96,303 $0 $66,250 $10,705 $710,815 $0 $6,961,200 $0 $765,000 $524,000 $4,476,000 $14,047,162 Project Tota $250,000 $425,000 $210,000 $852,000 $295,000 $972,000 $210,000 $315,000 $2,700,000 $580,000 $9,400,000 $675,000 $1,500,000 $1,000,000 $5,000,000 $24,384,000 General Security and Access Project Name General Security and Access Program: 5 ub-Program: Project Manager: General Improvements Program Projects Tom Godsey Dept/Division: Engineering/Planning and Development Services Purpose: Improve safety for employees and the general public; meet safety standards; reduce the District's exposure to liability; reduce loss of District's property; and reduce Operations and Maintenance expenses. History: The District has experienced property losses in the past. Improvements to the security system are continually identified and refined. It is possible that additional security measures for essential public service facilities may be required at some point. Description: This project potentially includes upgrading alarm systems, adding card readers, adding gates in the perimeter fencing, adding security cameras, improving lighting, fencing and or signage. Location: District -wide Project No. Phase Priority Rank Ranking Score Concord % 8207 P Very High 50 TBD Place for Image Schedule & Bud Phase: Prior FY's FY 16-17 FY 17-18 Future FY's Planning $47,616 $0 $0 $0 $0 $0 $0 $0 $0 $0 $102,384 $100,000 $47,616 $0 $102,384 $100,000 Design Construction FY Total Total $47,616 $0 $202,384 $250,000 145 Phase: 146 Prior FY's Planning $0 Design $222,444 Construction $0 FY Total $222,444 Project No. Phase C Priority Rank Ranking Score Concord % Critical 65 100% Place for Image GDI Treatment Plant Project Name Program: Sub -Program: Project Manager: Carolyn Knight Dept/Division: Engineering/Planning and Development Services 1 GDI Treatment Plan General Improvements Program Management Information Systems Purpose: Support the asset management program by providing an effective means of accessing treatment plant asset data through an interactive map linked to multiple datasets. History: The successful implementation of the collection system GDI indicates that a similar web interface for the treatment plant would provide efficient access to asset data. A pilot treatment plant GDI was developed and is currently used by staff.. Description: Implement a geographically based asset management tool for the treatment plant. The Treatment Plant GDI will be modeled after the collection system GDI; mirroring the graphic interface and functionality but accessing and delivering treatment plant related data sets. Location: Treatment Plant Schedule & Budget FY 16-17 FY 17-18 Future FY's $0 $0 $42,556 $120,000 $40,000 $0 $0 $42,556 $120,000 $40,000 $0 $0 Total $0 $425,000 $0 $425,000 Capital Legal Services Project Name Capital Legal Services Program: General Improvements Program Sub -Program: Projects Project Manager: Russell Leavitt Dept/Division: Engineering/Planning and Development Services Purpose: Streamline the processing of legal bills. History: In the past, legal expenses were charged to individual capital projects. This process required extra staff time each month to review legal bills and get approvals from several different project managers. Description: Capital legal service expenses are no longer charged to individual capital projects. Instead, legal expenses are charged to one capital account with four charge numbers for the four programs. This reduces the amount of time all parties must spend processing the legal bill.. Location: District -wide Project No. Phase Priority Rank Ranking Score Concord % 8230 P N/A N/A TBD Place for Image Schedule & Budget Phase: Planning Design Construction FY Total Prior FY's $1 15,495 $0 $0 $1 15,495 FY 16-17 $20,000 $0 $0 $20,000 FY 17-18 $30,000 $0 $0 $30,000 Future FY's $44,505 $0 $0 $44,505 Total $210,000 $0 $0 $210,000 147 Place for Image ii.ali GDI-SMMS Replacement Project Name GDI-SMMS Replacement Program: 5 ub-Program: Project Manager: Dept/Division: General Improvements Program Management Information Systems Carolyn Knight Engineering/Planning and Development Services Purpose: Support the asset management program by implementing a new geographic information system to efficiently integrate data to improve productivity and provide a standardized data structure resulting in improved spatial data management. History: The District's GDI was developed to minimize duplicate databases and present valuable information to staff for evaluating assets. GDI was built using various software platforms to integrate information from disparate data sources. Some of the software that is used for GDI's functionality is no longer supported by the vendors. ESRI software was chosen to replace the existing software Project No. Phase Priority Rank Ranking Score Concord % 8232 D Critical 65 50% because it is the mapping industry leader and a versatile, expandable solution. Using ESRI software will decrease the need to develop customized code because it integrates easily with other software and provides a variety of software tools to disseminate information. Description: GDI will be updated by migrating existing datasets into the new ESRI software platform. Spatial database information will be evaluated to standardize and consolidate data in order to minimize duplication across workgroups. Work flow processes and procedures will be documented to develop clear roles and responsibilities. Detailed specifications will be developed for hardware requirements, as well as any necessary customization for software functionality and maintenance. Evaluation of web interface tools will be completed to define the optimal solution(s) for presenting information to District staff. Following the evaluation, appropriate tools will be procured and implemented. Location: District -wide Schedule & Budget Phase: Planning Design Construction FY Total 148 Prior FY's $0 $847,335 $0 $847,335 FY 16-17 $0 $4,665 $0 $4,665 FY 17-18 $0 $0 $0 $0 Future FY's $0 $0 $0 $0 Total $0 $852,000 $0 $852,000 CSOD Facility Improvements Project Name CSOD Facility Impro Program: Sub -Program: Project Manager: General Improvements Program Projects Alex Rozul Dept/Division: Operations/ Collection System Operations Division Purpose: Improve the safety, reliability, and maintainability of the Collection System Operations Department facilities in Walnut Creek, including the vehicle maintenance shop. History: This is a multi-year program to construct capital improvements to the CSOD site in Walnut Creek. Projects will include improvements to the vehicle maintenance shop, which was not included in the CSOD Administration, Crew and Warehouse Facility project. Description: Minor improvements are budgeted for FY 2015-16. Work includes improving drainage at Materials Loading Facility. Location: 1250 Springbrook Road, Walnut Creek Project No. Phase Priority Rank Ranking Score Concord % Ir C Very High 55 0% Place for Image Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 $0 $0 $0 $0 $0 $0 $173,697 $25,000 $51,303 $173,697 $25,000 $51,303 Future FY's $0 $0 $45,000 $45,000 Total $295,000 $295,000 149 HOB Improvements Project Name Program: Sub -Program: Project Manager: Dept/Division: HOB Improvement General Improvements Program Projects Edgar Lopez Engineering/Capital Projects Purpose: Improve the safety, serviceability, maintainability, usability, and appearance of the interior and exterior of the Headquarters Office Building (HOB). History: The HOB was originally built by 1983 and seismically retrofitted in 2014. Although several interior improvements have been recently completed, this project provides for necessary improvements and for future modifications to the building. Description: This project will provide for office space improvements in the lower level and for the third floor of the building to accommodate relocating the IT division and newly adopted positions. Work will include new partitions, modifying existing partitions, and offices as needed. Security improvements will be coordinated with this project and be added to the scope. Project No. Phase Priority Rank Ranking Score Concord % 8234 C Very High 50 0% Place for Image Location: Headquarters Office Building, Martinez Schedule & Budge Phase: Planning Design Construction FY Total 150 Prior FY's $0 $0 $525,000 $525,000 FY 16-17 $0 $0 $447,000 $447,000 FY 17-18 $0 $0 $0 $0 Future FY's $0 $0 $0 $0 Total $0 $0 $972,000 $972,000 District Easement Acquisition Project Name Program: 5 ub-Program: Project Manager: District Easement Acquisition General Improvements Program Projects Tom Godsey Dept/Division: Engineering/Planning and Development Services Purpose: To improve or acquire new property land rights for existing or new sanitary sewers that are located on private properties and are not associated with a current capital project for sewer renovation work. History: As capital projects are designed, sanitary sewer easements may have to be acquired through budgets for those specific projects. This project provides funds for the acquisition of easements for projects where specific funds are not identified in the Capital Improvement Budget. Description: Easements that may be acquired through this project are: Project No. Phase Priority Rank Ranking Score Concord % 8236 P Critical 65 TBD L Place for Image m Locations where easements need to be purchased for existing sewers Sewers that need upgraded easement rights or access rights m Sewers relocated through other public agency projects m Outfall Easement Upgrade Project m Recycled Water Program. Location: Schedule & Budget Phase: Prior FY's Planning $128,750 $0 $0 $128,750 Design Construction FY Total FY 16-17 $15,000 $0 $0 $15,000 FY 17-18 $20,000 $0 $0 $20,000 Future FY's 46,250 $0 $0 $46,250 Total $210,000 $0 $0 $210,000 151 Buffer and Rental Property Improvements Project Name Buffer and Rental Property Improvements Program: General Improvements Program Sub -Program: Project Manager: Tom Godsey Dept/Division: Engineering/Planning and Development Services Projects Purpose: Protect and enhance the District's property through additions, improvements, replacements, and extraordinary repairs. History: The District owns various properties surrounding the Treatment Plant, including the Imhoff Triangle, the Kiewit parcel, 4849 Imhoff and 4737 Imhoff, and others. The Kiewit parcel has served as a buffer zone for the Treatment Plant and has been the site of a clean fill operation for several years. The Imhoff properties also serve as a buffer between the Treatment Plant and nearby neighborhoods, and are used as rental property and to house some District work groups and equipment. Description: This project will fund needed improvements to the buffer and rental properties, and the surrounding parking lots and grounds. Project No. Phase C Priority Rank Critical Ranking Score 65 Concord % 0% Place for Image Location: Martinez Schedule & Budge Phase: Planning Design Construction FY Total 152 Prior FY's FY 16-17 FY 17-18 Future FY's - $0 $0 - $0 $0 $254,295 $50,000 $10,705 $254,295 $50,000 $10,705 $0 $0 $0 $0 Total $0 $0 $315,000 $315,000 Place for Image iiii Asset Management Program Development Project Name Program: 5 ub-Program: Project Manager: Dept/Division: Asset Management Program Development General Improvements Program Asset Management Plan Dana Lawson Engineering/Planning and Development Services Purpose: Develop a comprehensive asset management program to optimize the lifecycle of the District's assets to deliver high quality and reliable services in a sustainable manner for customers with an acceptable level of risk History: This project builds on the previous Treatment Plant Asset Management Plan, Force Main Assessment, various master plans and the sewer renovation program. In FY 14-15, a consultant was contracted to develop a multi-year implementation plan; Board Policy 15 was adopted regarding asset management; began Project No. Phase Priority Rank Ranking Score Concord % 8238 C Critical 70 50% standardizing codes and cleaning the plant's asset registrar, assisted with the version upgrade to the plant's CMMS as well as improving its functionality, updated the pumping station assets; began drafting procedures and data standards; and coordinated access to O&M manuals, shop drawings, reports, etc. through TP GDI. Description: The final version of the Asset Management Implementation Plan Summary Report was published in March 2015. The elements identified were assigned by staff to existing projects where applicable, included in maintenance efforts as continuous improvement efforts, and the remaining elements will be completed in this project. Implementation will require District staff time over the next three years to accomplish such tasks as standardizing and completing the asset register, drafting to consolidate treatment plant As-Builts, consolidating CCTV databases, and updating the asset management plan. Specialty tasks that will be managed by District staff but also require outside assistance include utility locating, developing the reliability centered maintenance program, conducting condition assessment of critical TP piping, and may also include integrating failure -based maintenance strategies, developing program management standards or software/tools, and reviewing the asset management plan. Location: District -wide 1 • • • udg Phase: Planning Design Construction FY Total Prior FY's $1,189,185 $0 $0 $1,189,185 FY 16-17 $0 $0 $800,000 $800,000 FY 17-18 $0 $0 $710,815 $710,815 Future FY's $0 $0 $0 $0 Total $1,189,185 $0 $1,510,815 $2,700,000 153 POD Office Improvements ame POD Office Improvements Program: 5 ub-Program: Project Manager: General Improvements Program Projects Brad Leidecker Dept/Division: Engineering/Capital Projects Purpose: The project purpose is to make improvements to the interior and exterior of the Plant Operations Department Administration building. History: The building is over 30 years old. There is an ongoing need to renovate or reconfigure office and workstation space to match employee needs and duties, to replace outdated or worn out furniture, meet ADA requirements, and to incorporate new office technologies. Replacement of carpeting and repainting has been completed. Modular furniture has been replaced in several cubicles. Description: This multi-year project will provide an allowance to renovate and upgrade the interior and exterior of the POD Administration offices and the Emergency Operations Center (EOC) located in the Multi -Purpose Room. Anticipated projects include installation of cabinetry for storage of EOC equipment. The MPR will be evaluated for security improvements. Project No. Phase Priority Rank Ranking Score Concord % 8239 C Critical 65 100% Place for Image Location: Martinez Schedule & Budget Phase: Planning Design Construction FY Total 154 Prior FY's FY 16-17 FY 17-18 Future FY's $0 $0 $0 $0 $0 $0 $459,590 $120,410 $0 $459,590 $120,410 $0 $0 $0 $0 $0 Total $0 $0 $580,000 $580,000 Information Technology Development imill ame Program: Sub -Program: Project Manager: Dept/Division: Information Technology Development General Improvements Program Management Information Systems John Huie Administration Purpose: To replace and upgrade IT infrastructure and software as needed. History: An Information Technology Development Plan was developed to centralize efforts and funding in the development of computer and telecommunication technology within the District. The District budgets IT on a yearly basis. The IT Master plan was approved in 2015 and its implementation is within the CIB and 10 year plan. Description: This project is the implementation of the IT Master Plan, please see the following document for specific work planned this fiscal year. Location: District -wide Project No. Phase Priority Rank Ranking Score Concord % 8240 C Critical 70 50% Er Place for Image Schedule & Budge Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $0 $0 $0 $0 $0 $0 $0 $1,538,800 $900,000 $1,300,000 $1,538,800 $900,000 $1,300,000 $5,661,200 $0 $5,661,200 Total $0 $0 $9,400,000 $9,400,000 155 CMMS Replacement Project Name Program: 5 ub-Program: Project Manager: Dept/Division: CMMS Replacement General Improvements Program Management Information Systems Dana Lawson Engineering/Planning and Development Services Purpose: Support the asset management program by replacing the computerized maintenance management system (CMMS) for both the collection system and treatment plant. History: District Project 8232, GDI-SMMS Replacement, replaced the unsupported GIS software versions with a new fully - supported ESRI platform. The migration to ESRI will be completed by June 2015. The current CMMS for the collection system is no longer vendor -supported. Additionally, consolidating all assets into one state-of-the-art, supported system will more effectively manage the lifecycle cost of owning and operating these assets in support of the District's mission. This project also supports Strategic Goal No. 6, Strategy 1, through a specific key performance indicator in the Plan. Project No. Phase Priority Rank Ranking Score Concord % 8242 C Critical 65 50% rli Place for Image . Description: This project will continue consolidating software systems by procuring, migrating data, configuring and implementing an effective CMMS solution that encompasses all District assets (collection, distribution, treatment, pump station, fleet, etc.) and efficiently integrates with the GIS. The collection system will be migrated and configured first, followed by the treatment plant and pumping station assets. Location: District -wide Schedule & Budget Phase: Planning Design Construction FY Total 156 Prior FY's $0 $40,980 $500,000 $540,980 FY 16-17 $0 $0 $134,020 $134,020 FY 17-18 $0 $0 $0 $0 Future FY's $0 $0 $0 $0 Total $0 $40,980 $634,020 $675,000 Server Room Relocation Project Name Program: Sub -Program: Project Manager: Dept/Division: Server Room Relocation General Improvements Projects Jason DeGroot Engineering/Capital Projects Purpose: Relocate all computer/server/network equipment and related equipment from its current location in the POD basement to a suitable location. History: In FY 2014-15, the project was initiated after a major IT server failure at the main network facility. The existing room is a decommissioned laboratory facility which is vulnerable to several process and other water pipelines. Description: At this time, this project will evaluate alternatives and possible locations to relocate the District's main server equipment and consider future IT requirements. Upon the results of this evaluation, staff will prioritize and update the costs and future schedule for any capital improvements recommended. Location: Treatment Plant Project No. Phase Priority Rank Ranking Score Concord % 8243 P Critical 65 50% Place for Image Schedule & Budge Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $85,000 $0 $0 $0 $250,000 $0 $0 $400,000 $765,000 $85,000 $650,000 $765,000 $0 $0 $0 $0 Total $85,000 $250,000 $1,165,000 $1,500,000 157 District Equipment Acquisition Project Name Program: Sub -Program: Project Manager: Dept/Division: 'strict Equipment Acquisition General Improvements Program Vehicles and Equipment Acquisition Amal Lyon Administrative/Finance and Accounting Purpose: To provide new, safe and cost-effective equipment for District operations. History: A project is developed on a yearly basis to procure required equipment throughout the District. Description: The following new equipment is scheduled to be purchased in FY 2016-17: POD Battery Load Tester ($16,500) POD Digital Ultrasonic Inspection System ($6,500) POD Bed Mill ($45,000) $8,000 Contingency Location: District -wide Project No. Phase Priority Rank Ranking Score Concord % 8516 P Very High 55 TBD Place for Image Schedule & Budget Phase: Planning Design Construction FY Total 158 Prior FY's $0 $0 $400,000 $400,000 FY 16-17 $0 $0 $76,000 $76,000 FY 17-18 $0 $0 $100,000 $100,000 Future FY's $0 $0 $424,000 $424,000 Total $0 $0 $1,000,000 $1,000,000 Vehicle Replacement Program Project Name Program: Sub -Program: Project Manager: Vehicle Replacement Program General Improvements Program Vehicles and Equipment Acquisition Amal Lyon Dept/Division: Administrative/Finance and Accounting Purpose: To provide the District with safe and cost-effective vehicle replacement. History: In the past, a yearly project was developed to procure required equipment and vehicles throughout the District. This Fiscal Year, the District will budget and acquire vehicles under a separate project and use Asset Management principles and historic replacement costs to provide an effective replacement strategy for vehicles. Description: The following vehicles are scheduled to be purchased in FY 2016-17: CSO Mid -Size 2x4 Truck ($33,000) CSO 1/2 Ton 4x4 Truck ($40,000) CSO 3/4 Ton 2x4 Truck w/Crane ($37,000) CSO Vactor "Ramjet" Jet Rodder ($375,000) POD 2 Qty. Cushman Titan 36 volt Flatbed Cart ($9,500 ea.), $20,000 Contingency Project No. Phase C Priority Rank Very High Ranking Score 55 Concord % TBD Place for Image Location: District -wide Schedule & Budget Phase: Planning Design Construction FY Total Prior FY's FY 16-17 $0 $0 $0 $0 $0 $524,000 $0 $524,000 FY 17-18 Future FY's $0 $0 $0 $0 $500,000 $500,000 $3,976,000 $3,976,000 Total $0 $0 $5,000,000 $5,000,000 159 Capital Improvement Program CIB-Recycled Water Program The District currently delivers about 200 million gallons per year of recycled water to 35 customers located within the Zone 1 service area for landscape irrigation and commercial uses. These customers are located along the Interstate 680 corridor in Pleasant Hill, Concord, and Martinez. The District also uses about 400 million gallons per year at the treatment plant for process water and District property landscape irrigation. The Regional Water Quality Control Board (RWQCB) encourages the District to expand its recycled water program, and activities must be reported annually to the RWQCB. The District continues to pursue a number of projects as described in the following pages. The major emphasis of the Recycled Water Program for the next fiscal year will be supporting the recycled water elements included in the Comprehensive Wastewater Master Plan Project and connecting individual customer sites within the Concord Landscape Project. The District will also continue efforts to add new cost effective customers in the District's Zone 1 service area, pursue outside funding assistance (such as federal and state grants for all District recycled water projects), and work with water supply agencies to develop recycled water supply alternatives. Alternative supply opportunities may include a small-scale refinery project to wholesale about 0.5 MGD to Contra Costa Water District (CCWD) out of our existing treatment facilities, expansion of the District's residential customer recycle water fill station, as well as adding hydrants to distribute recycled water for commercial use. FY 2016-17 CIB Recycled Water Program/Project Summary Estimated Expenditures 7300 7306 7344 Recycled Water Planning 7345 7346 Surge Analysis 16-17 7347* Rew Automated Fill Station 7350* Residential Fill Station Improv Totals Refinery REW Zone 1 Recycled Water Filter Plant *New project included in CIB. 160 Budgeted to Date $595,000 $395,000 $100,000 $200,000 $0 $1 15,000 $450,000 $1,855,000 Prior Fiscal Years 7 Project Tota $355,642 $40,000 $199,358 $595,000 $237,005 $37,815 $385,180 $660,000 $50,000 $102,185 $347,815 $500,000 $200,000 $200,000 $150,000 $550,000 $0 $55,000 $45,000 $100,000 $100,000 $15,000 $0 $115,000 $400,000 $50,000 $0 $450,000 $1,342,647 $500,000 $1,127,353 $2,970,000 Place for Image 1111 Refinery Recycled Water Project Project Name Concord Naval Weapons Station Recycled Water Planning Program: Recycled Water Program Sub -Program: Project Manager: Nathan Hodges Dept/Division: Engineering/Planning and Development Services Urban Landscaping Purpose: Determine the feasibility of providing recycled water to the Shell and/or Tesoro refineries in Martinez. History: Staff has worked with Contra Costa Water District (CCWD) and refinery staff to determine if and how recycled water might fit into future water supply scenarios. The two refineries use a combined total of approximately 22,500 acre feet per year (AFY) of Delta water of which some portion could be replaced with recycled water. In 2011, CCCSD was awarded a grant from the U.S. Bureau of Reclamation to prepare a feasibility study and environmental documentation. The feasibility study closeout report was submitted March 2014. Staff has pursued a variety of federal and state funding sources in an effort to improve the economics Project No. Phase Priority Rank Ranking Score Concord % P Very High 50 100% of a potential project. Some infrastructure required for this project already exists, but new treatment facilities are needed to meet refinery water quality requirements. Description: Work with CCWD to develop a project to serve the refineries. Such a project could range from 0.5 MGD to complete replacement of the refineries' Delta water. Continue pursuit of funding options in coordination with CCWD for the development of a larger -scale refinery project that may include the construction of new recycled water treatment facilities including nitrification, filtration, and disinfection facilities and possibly denitrification facilities. Depending on the volume of recycled water served, the total estimated project cost can range from $31 to $100 million. At this time, budget is only included for project planning activities and to pursue funding and project partners. Location: Martinez Schedule & Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $355,642 $40,000 $40,000 $159,358 $0 $0 $0 $0 $0 $0 $0 $0 $355,642 $40,000 $40,000 $159,358 Total $595,000 $0 $0 $595,000 161 Phase: Planning Design Construction FY Total 162 Zone 1 Recycled Water - Phase 1C Project Name Program: Sub -Program: Project Manager: Zone 1 Recycled Water — Phase 1C Recycled Water Program Urban Landscaping Nathan Hodges Dept/Division: Engineering/Planning and Development Services Purpose: Provide recycled water for landscape irrigation and other identified uses in the Zone 1 Project area, which includes Pleasant Hill and portions of Concord and Martinez. History: In 2001, the District completed the Zone 1 Implementation Plan that provided estimated connection costs and revenues for customers identified in the CCWD Zone 1 Project Agreement. Depending on the extent of use, demand for recycled water in Zone 1 for landscape irrigation and commercial uses could be up to 400 million gallons per year. New customers will continue to be added to the system where technically and economically feasible. The District is focusing on connecting cost-effective landscape irrigation sites near existing recycled water distribution pipelines. Project No. Phase Priority Rank Ranking Score Concord % 06 C Very H 50 100% Place for Image Description: This project provides funds for the planning, design, and construction of recycled water facilities for landscape irrigation customers and other identified uses in the Zone 1 Project area. Subsequent phases of this project continue in future fiscal years. Location: City of Pleasant Hill, Concord, and Martinez Schedule & Budge Prior FY's FY 16-17 $117,005 $0 $0 $0 $120,000 $37,815 $237,005 $37,815 FY 17-18 $0 $0 $60,000 $60,000 Future FY's $0 $0 $325,180 $325,180 Total $117,005 $0 $542,995 $660,000 Recycled Water Planning Project Name Program: Sub -Program: Project Manager: Recycled Water Planning Recycled Water Program Urban Landscaping Nathan Hodges Dept/Division: Engineering/Planning and Development Services Purpose: Develop and implement a comprehensive long-term Recycled Water Program that provides recycled water for landscape irrigation, industrial reuse, and other applications. History: The District has worked with local water purveyors over the years to develop partnerships and identify opportunities to expand recycled water use. Recent planning efforts have focused on the refinery recycled water project; the use of recycled water on buffer properties near the treatment plant; the use of satellite treatment facilities to provide recycled water to landscape irrigation customers in remote areas; other recycled water projects outside the District's existing Zone 1 Project Area; and work to comply with State Water Resources Control Board requirements for salt and nutrient management plans. Project No. Phase P Priority Rank Ranking Score Concord % Critical 65 100% Place for Image Description: This project will continue efforts to increase the demand for recycled water. Perform planning studies for the District's recycled water program to address implementation issues such as funding, regulations, treatment technologies, developing policies (i.e. satellite recycled water facilities), public education, and gaining political support from public agencies. Location: Entire Service Area Schedule & Budg Phase: Planning Design Construction FY Total Prior FY's FY 16-17 FY 17-18 Future FY's $50,000 $102,185 $100,000 $247,815 $0 $0 $0 $0 $0 $0 $0 $0 $50,000 $102,185 $100,000 $247,815 Total $500,000 $0 $0 $500,000 163 Filter Plant Project Name Program: Sub -Program: Project Manager: Dept/Division: Filter Plant Recycled Water Planning Urban Landscaping Nathan Hodges Engineering/Planning and Development Services Purpose: This project will evaluate existing recycled water facilities at the treatment plant, and evaluate alternatives related to zero -discharge. History: The Comprehensive Wastewater Master Plan will provide a framework for the future management of the District's collection system and treatment plant. Included in this effort is an evaluation of the recycled water facilities. Description: This project provides the funding for the Comprehensive Wastewater Master Plan consultant to conduct the evaluations and other work related to recycled water facilities. Location: Treatment Plant Project No. Phase Priority Rank Ranking Score Concord % ilr- P Critical 65 100% 1 II Place for Image Schedule & Budget Phase: Planning Design Construction FY Total 164 Prior FY's FY 16-17 FY 17-18 $200,000 $0 $0 $0 $0 $0 $0 $200,000 $150,000 $200,000 $200,000 $150,000 Future FY's $0 $0 $0 $0 Total $200,000 $0 $350,000 $550,000 Surge Analysis Project Name Surge Anal Program: Recycled Water Planning Sub -Program: Urban Landscaping Project Manager: Nathan Hodges Dept/Division: Engineering/Planning and Development Services Purpose: Conduct a surge analysis of the recycled water distribution system. History: The distribution system has experienced a number of pipeline breaks over the last few years. Analysis of the circumstances surrounding many of these issues has been a concern with pressure fluctuations. Description: This project will analyze the distribution system including pumping to determine if any improvements are needed to ensure the long-term integrity of the recycled water pipeline system. Location: Treatment Plant Project No. Phase Priority Rank Ranking Score Concord % ilr- P Critical 65 100% am Place for Image Schedule & Budget Phase: Planning Design Construction FY Total Prior FY's $0 $0 $0 $0 FY 16-17 $55,000 $0 $0 $55,000 FY 17-18 $45,000 $0 $0 $45,000 Future FY's $0 $0 $0 $0 Total $100,000 $0 $0 $100,000 165 Rew Commercial Truck Fill Station Project Name Program: Sub -Program: Project Manager: Rew Com - rcial Truck Fill Station Recycled Water Urban Landscaping Nathan Hodges Dept/Division: Engineering/Capital Projects Purpose: Increase the commercial use of recycled water through the Recycled Water Truck Filling Program (Fill Program). In addition, the pilot automated fill station will lower the need for additional meters and improve the process to obtaining recycled water. History: The Fill Program is one of the programs employed by the District to deliver recycled water in Zone 1. The District currently has three recycled water hydrants that Contractors utilize for commercial or construction activities. Since the State drought declaration, the demand for using recycled water hydrants has outpaced the supply of available meters. This demand is attributed to a combination of water districts not distributing potable water meters for construction -related use and an Project No. Phase Priority Rank Ranking Score Concord % C Critical 65 100% Place for Image increase in construction activity. Under pilot conditions, the District has approved the automated system and will distribute free recycled water to commercial users. Description: This project will install a packaged automated commercial recycled water truck fill station within the Kiewit property. The automated fill station will be connected to the existing recycled water hydrant. The fill station comes complete with mechanical and instrumentation/control components. The automated fill station registers users into the system and provides each user with a unique pin code that can track the quantity of recycled water dispensed. Location: Martinez Schedule & Budg Phase: Planning Design Construction FY Total 166 Prior FY's $10,000 $25,000 $65,000 $100,000 FY 16-17 $0 $0 $15,000 $15,000 FY 17-18 $0 $0 $0 $0 Future FY's $0 $0 $0 $0 Total $10,000 $25,000 $80,000 $115,000 Residential Fill Station Improvements Project Name Program: Sub -Program: Project Manager: Residential Fill Station Improvements Recycled Water Planning Urban Landscaping Nathan Hodges Dept/Division: Engineering/Capital Projects Purpose: Install additional recycled water facilities to meet increased demand and reduce wait times for residential fill station customers. History: In 2014 the District opened residential recycled water fill stations at HHW to address the emergency drought conditions for District customers. During 2015 the District experience significant demand for residential recycled water. Additional fill stations were added at HHW and fill station traffic was adjusted to safely handle the nearly 500 vehicle trips per day at peak usage. Temporary staff was brought in to assist with the training, traffic, and management of the filling operation. Filling hours were extended to 7 days a week to address the demand. At peak usages customers still had to wait an hour before reaching a filling station. Project No. Phase Priority Rank Ranking Score Concord % P Critical 65 100% i Place for Image Description: This project will evaluate alternatives for providing additional residential recycled water to shorten the wait times and better meet customer demand for recycled water. One alternative to be evaluated is to connect to the plant's utility water system, extend a line across Imhoff Place, and run the line to the Imhoff Place frontage road. A second alternative to be evaluated will be to install additional infrastructure (including paving) on the Kiewit property to accommodate residential users and to utilize existing fill station connections. Designs and cost estimates will be developed in order to recommend an alternative for implementation. Construction will follow ASAP in order to provide the additional water this summer. Location: Martinez Schedule & Budget Phase: Planning Design Construction FY Total Prior FY's FY 16-17 $0 $0 $0 $0 $400,000 $50,000 $400,000 $50,000 FY 17-18 $0 $0 $0 $0 Future FY's $0 $0 $0 $0 Total $0 $0 $450,000 $450,000 167 Ten -Year Capital Improvement Plan Purpose The District has developed a ten-year Capital Improvement Plan (CIP) for the District's capital facilities and financing needs. The CIP is updated every year. Specifically, the plan identifies and prioritizes capital projects needed to accomplish the District's mission. It also includes cost estimates for proposed project work and projections for the various sources of revenue needed to meet the cash flow requirements of the CIP. The principal purpose of the CIP is to provide the District's Board of Directors with the information needed to formulate long-range policy regarding: - Priority and Schedule - identify, prioritize, and schedule the projects necessary to accomplish the District's mission. - Financing - plan sufficient financial resources for completion of the projects proposed in the CIP. The following discussion provides: 1) a general description of the plan; and 2) a discussion of potential, unbudgeted future projects. Capital Improvement Plan Objectives The District Has Identified Four Principal Objectives For Its Capital Improvement Plan: ▪ Support the District's mission to protect public health and the environment by: - Collecting and treating wastewater, and - Being a high performance organization that provides exceptional customer service and regulation compliance at responsible rates. - Accommodate future growth in the service area as approved by the city and county planning agencies responsible for land use policy decisions. ▪ Respond to issues of community concern by: - Managing the cost of operating and maintaining facilities - Reducing objectionable odors - Cooperating with other public agencies to avoid duplication of effort and improve service delivery - Reducing power consumption through energy management - Asset Management 168 Ten -Year Capital Improvement Plan Specific Projects In The Ten -Year Plan Drivers for the CIP Capital improvement projects are identified by four major drivers: Replacement and Rehabilitation, Regulatory, Sustainability/Energy/Optimization, and Capacity Expansion. Below is a brief discussion of each driver. 1. Replacement and Rehabilitation This category focuses on projects related to aging infrastructure and the replacement requirements of the District. The District operates and maintains approximately $3.6 billion of assets, and several projects in each program have been initiated or in progress to meet the replacement or rehabilitation of the District's infrastructure. 2. Regulatory This category ensures that the District remains in full regulatory and safety compliance with all applicable regulations. 3. Sustainability/Energy/Optimization This category focuses on projects that optimize existing processes, energy efficiency, and/or sustainability of the treatment plant or collection system and other facilities. 4. Capacity Expansion The capacity expansion projects are developed to upgrade and improve existing facilities to meet increasing flow due to in -fill, new development, and wet weather. The CIP is broken down into these four drivers and, as projects develop and are prioritized, they are then grouped into the four programs as shown in the CIB: 1) Treatment Plant Program; 2) Collection System Program; 3) General Improvements Program; and 4) Recycled Water Program. A brief description of each program and a list of projects for the ten years of this plan are provided in the Capital Plan sections for each of the four programs. Summary This CIP assumes that funds will be available to support the plan. These funds come from all the sources of revenue as discussed in the Finance and Revenue section. The only two discretionary sources of revenue are the sale of bonds or adjustment of the capital component of the Sewer Service Charge. This document is for planning purposes only. The District Board has not yet voted to sell bonds to fund this planned program. The plan is currently funded on a year -by -year basis when the Capital Improvement Budget (CIB) for the upcoming fiscal year (FY) is formally authorized and adopted by the Board. Changes in capital revenue forecasts or changes in recommended expenditures may result in changes to this ten-year plan. 169 Ten -Year Capital Improvement Plan Treatment Plant Program The Treatment Plant Program includes projects that will meet changing regulatory mandates, address recurring renovation needs, and upgrade the wastewater treatment plant in areas such as hydraulic/process and solids handling. The emphasis of the Treatment Plant Program will be on the renovation needs of the aging infrastructure of our complex treatment facility and on meeting increasingly stringent regulatory requirements. The Comprehensive Wastewater Master Plan started in July 2015 will be completed in the spring of 2017. This Master Plan effort will help the District coordinate and evaluate past studies and planning work and provide new condition assessments to produce a future CIP. The information presented in the FY 2016 CIP has been coordinated with the Master Plan effort to date and revised for future projects. Capacity improvements will be primarily limited to those needed for the solids handling processes and to handle wet weather flows. One large regulatory project facing the District in the next ten to twenty years: the Nutrient Removal project. Staff will continue to evaluate treatment alternatives and pilot programs in anticipation of possible regulatory changes and to help identify improvements and process capabilities. These projects will include nutrient removal, alternative energy, and/or solids handling. This section is a listing of the projects in the ten-year CIP that pertain to the District's wastewater treatment plant. The CIP is based on the recognition that plant facilities require ongoing renovations and replacement. Environmental regulations will likely become more stringent in the future, and the District is on a gradual but steady pace towards build -out over the next 20 years. Major emphasis is on maintaining existing assets, improving processes when cost effective, and ensuring regulatory compliance. Replacement and Rehabilitation The goals of this category are to provide for ongoing or future renovation activities. This category provides capital funds for replacement or rehabilitation of aging treatment plant infrastructure. The projects include Equipment Replacement, Piping Renovations and Replacement, Electrical and Instrumentation Replacement, and Electrical Switchgear Project. Regulatory The goals of the Regulatory and Safety projects are to ensure that existing and future facilities meet safety and regulatory requirements. These projects cover a wide variety of subjects to improve facilities for safety reasons, to reduce emissions of pollutants to the environment, and to meet future regulatory requirements. Budgeted projects to address regulatory requirements include the wet and dry scrubber replacement, headworks screening removal, multiple hearth furnaces (MHF) improvements (emissions requirements), outfall improvements, and soil remediation. Sustainability/Energy/Optimization The goals of the Sustainability/Energy/Optimization projects are to continue upgrading and improving the treatment plants existing infrastructure and systems to optimize for energy use, lower maintenance costs, and prevent major failures at the treatment plant. Projects in this category include seismic improvements, centrifuge and cake pump upgrades, plant energy optimization, and aeration system improvements. 170 Ten -Year Capital Improvement Plan Capacity Expansion The goals of the expansion projects are to upgrade and improve existing facilities to meet increasing flow due to development in -fill, new development, and wet weather. Treatment Plant Replacement and Rehabilitation Projects — 2016-2026 Capital Improvement Plan Project Title Piping Renovations and Replacement Program Treatment Plant Equipment Replacement Plant Electrical and Instrumentation Replacement Treatment Plant Protective Coating Renovation WPM Location Description This ongoing project will improve the reliability of treatment plant piping systems above and below ground by inspection, 2016 renovation, and replacement where required. The Asset through Management Plan and the Comprehensive Wastewater Master 2026 Plan will ultimately be used to provide recommendations for additional renewal and replacement needs of major piping systems. Investigate and replace plant equipment to reduce maintenance costs, increase reliability, and improve treatment operations through replacement or reconditioning of technologically obsolete, worn out, maintenance -intensive equipment, or equipment that is no longer supported by its manufacturer. The Asset Management Plan and the Comprehensive Wastewater Master Plan will ultimately be used to provide recommendations for additional renewal and replacement needs of major equipment. The project will identify deficiencies in the electrical, instrumentation, and control (EI&C) systems in the Treatment EntireTreatment Plant and rectify the issues.The Asset Management Plan and Plant the Comprehensive Wastewater Master Plan will ultimately be used to provide recommendations for additional renewal and replacement needs of the EI&C systems. The Asset Management Plan Project is documenting the condition of District facilities and equipment and will be used to recommend needed coating projects. 2016 through 2026 2016 through 2026 2016 through 2026 EntireTreatment Plant EntireTreatment Plant EntireTreatment Plant 171 Ten -Year Capital Improvement Plan Treatment Plant Regulatory and Safety Projects - 2016-2026 Capital Improvement Plan Project Title Nitrification Disinfection New Solids Handling Facilities (MHF/ Digesters) TP Safety Improvements Program Future Regulatory Projects Primary Treatment Covers Treatment Plant Hazard Identification and Remediation, Phase 2 Treatment Plant Soil Remediation, Phase 2 172 Year Location Description 2023 2024 2023 Ongoing 2021 2022 2020 2023 Aeration Basins and Clarifiers Ultraviolet Disinfection EntireTreatment Plant EntireTreatment Plant EntireTreatment Plant Primary Sed Basins EntireTreatment Plant Area east of existing aeration tanks There are a number of potential regulatory changes that may be implemented within the next ten years. These changes may include requirements that will necessitate the District to remove ammonia and other nutrients from effluent flow in the future. This will require either an expansion of the aeration tanks and clarifiers or use of other technologies and significant capital expenditures. The Comprehensive Wastewater Master Plan will ultimately be used to provide recommendations for nutrient removal improvements and update the CIP. Depending on future regulatory requirements and necessary modifications to the treatment plant, an alternative disinfection method may be required. The Asset Management Plan and the Comprehensive Wastewater Master Plan will ultimately be used to provide recommendations for the renewal and replacement of the disinfection system. There are a number of potential regulatory changes that may be implemented within the next ten years. These changes may include requirements that will necessitate replacement of the existing Multiple Hearth Furnaces with Fluidized Bed Incinerators, or construction of Anaerobic Digesters, or a combination thereof, use of other available technology for treatment and disposal of sludge. These anticipated changes in solids handling will require significant capital expenditures in the next fifteen years. The Comprehensive Wastewater Master Plan will ultimately be used to provide recommendations for solids handling improvements and update the CIP. Improvements will be made to enhance and provide a safe working environment throughout the treatment plant. Potential new regulations that impact operation of the treatment plant will emerge in the future. The Comprehensive Wastewater Master Plan will ultimately be used to provide recommendations for handling improvements required to meet future regulations and update the CIP. Primary tanks may need to be covered to meet regulations and reduce odors. This project will identify and remediate hazardous materials within the treatment plant.This will minimize the exposure of the District's employees to hazardous materials during the course of their work. The soil east of the existing aeration tanks is contaminated. To expand the aeration tanks in preparation for plant conversion for nitrification, the contaminated soil will have to be either treated on site or removed and disposed at an appropriate - class landfill. Ten -Year Capital Improvement Plan Treatment Plant Sustainability/Energy/Optimization Projects - 2016 Capital Improvement Plan Project Title SCB Seismic Improvements Furnace Burner Warehouse Seismic Upgrade Alternative Energy Facilities, Phase 2 Aeration System Renovation, Phase 2 Secondary Process Improvements, Phase 2 Laboratory Seismic Upgrade Year Location Solids 2022 Conditioning Building 2019 Solids Conditioning Building Warehouse/ 2019 Mechanical Shop 2022 2019 2020 EntireTreatment Plant Pump and Blower Building and Primary Tanks area Aeration Basins and Clarifiers 2024 Laboratory Description Design and construct seismic improvements based upon the recommendations provided in work done under the Treatment Plant Seismic Evaluation Project (DP 7267). The improvements will meet requirements of the latest building codes.Timing/need for this project will be coordinated with the recommendations from the New Solids Handling project. Modifications will be made to ensure compliance with emerging regulations. This project will improve operational flexibility of the multiple hearth furnaces by adding auxiliary fuel delivery, piping and burners, and the ability to co -fire natural and landfill gases for the furnaces. This project will design and construct seismic improvements based on the recommendations provided in work done under the Treatment Plant Seismic Evaluation Project (DP 7267).The improvements will meet requirements of the latest building codes. This project includes evaluation and replacement of the District's cogeneration unit with a new, more efficient power generation unit or use of an alternative energy source. This project will design and construct small electric blowers for the grit chambers and will optimize use of existing steam blowers and modify the existing electric blower. Adding nitrification and/or nutrient removal to the treatment process will have a major impact on the aeration system and will need to be evaluated. This project will replace and modify existing piping and components of the secondary process to extend the life of the system and add flexibility to the selector channel. This project will design and construct seismic improvements based on the recommendations provided in work done under the Treatment Plant Seismic Evaluation Project (DP 7267).The improvements will meet requirements of the latest building codes. 173 Ten -Year Capital Improvement Plan Collection System Program The Collection System Program includes projects needed to renovate aging sewers and to serve new development in the District's service area. Specific near term and long term goals include upgrading the system where necessary to address capacity needs, improving the reliability of the District's pumping stations, and implementing projects to address renovation needs. The Collection System Master Plan and the new hydrodynamic hydraulic model analysis will be used to identify and prioritize the collection system projects. Since its inception in FY 2002-03, the District -Wide TV Inspection program has been used to identify line segments in need of renovation. The TV inspection results, coupled with CSO maintenance records and hydraulic analysis, are used to prioritize lines in need of renovation. The areas of concern are then grouped geographically and bid as District projects. The TV inspection program helps CSO to better prioritize and plan maintenance activities and has been moved to the Operations and Maintenance budget to reflect the ongoing and District -wide nature of the program. The Collection System Master Plan is currently being updated and is incorporating changes in planned development within our service area. The updated master plan will document the sewers which will need to be upsized to increase capacity over approximately the next 30 years. As this capacity is needed, these lines will be added to the capital program. The Collection System Program also provides for pumping station and force main improvements to increase station capacity, provide emergency power, and upgrade old equipment to increase capacity and improve reliability. The Collection System Program includes projects to provide renovation of the collection system infrastructure and to serve new development in the District's service area. Projects also provide improvements to pumping stations and force mains. These improvements provide capacity and renovation to reduce the likelihood of sewage overflows during dry and wet weather. Renovation The renovation program goal is to address recurring renovation needs. In prior years, renovation needs were identified by CSOD through their critical line segments list. This information is now augmented by a comprehensive TV inspection program of the entire collection system that is now funded through the District's Operations and Maintenance budget. This information is being utilized to develop improved estimates of the short- and long term recurring renovation needs. The District's collection system contains pipe reaches of many material types, sizes, ages, and other installation conditions that must be evaluated and replaced on an appropriate cycle. This cycle is determined by the condition of the pipe. Regulatory Compliance/Planning/Safety For the past few years, the District has anticipated more stringent regulations with respect to the operation and maintenance of the collection system to reduce overflows. The local Regional Water Quality Control Board staff implemented such a program in 2005, and the State Board implemented a similar requirement in 2006. Both regulatory bodies require each collection system agency to have prepared a Sewer System Management Plan (SSMP). They require careful review and documentation of the District's continuing evaluation and planning for the collection system in the areas of capacity management, operation, and maintenance. 174 Ten -Year Capital Improvement Plan Deteriorating private sewer laterals are known to be a significant source of inflow and infiltration (I/I) throughout the wastewater industry. Addressing this issue will require substantial capital and extensive coordination. The District has been actively participating in discussions related to the reduction of private property I/I on the local and state levels. It is anticipated that more stringent regulations to address deteriorated private sewer laterals will be imposed in the not -too -distant future. Expansion As part of the ongoing Collection System Master Plan Update, the District's sewer system hydraulic model is being updated; possible capacity deficiencies will be identified and prioritized. Large capacity projects that are planned over the next ten years include trunk sewer improvements in locations in Pleasant Hill, along Lancaster Road and the Walnut Boulevard corridor in Walnut Creek, Moraga Way in Orinda, in San Ramon (Schedule C Interceptor), and trunk sewers along Alhambra Avenue in Martinez. Developer sewers and other projects throughout the District relieve and expand capacity limited pipe sections. Pumping Stations The Asset Management Plan and the Comprehensive Wastewater Master Plan will ultimately be used to provide recommendations for the renewal and rehabilitation of the pumping stations. 175 Ten -Year Capital Improvement Plan Collection System Renovation Projects — 2016 Capital Improvement Plan Project Title Mt. Diablo Boulevard Main Improvements Collection System Renovation Program Concrete Pipe Renovation Collection System Urgent Projects North Main Trunk Improvements Locust Street Improvements A-line Relief -39 Inch Rehab Collection System Year 2022 Ongoing Ongoing Ongoing 2019 2019 2021 Location Mt. Diablo Blvd. Throughout the collection system Throughout the collection system Throughout the collection system N. Main from Civic Dr. and Carlback Ave. Locust Street in Walnut Creek A-line near Treatment Plant Description Rehabilitate or replace sewers within the Mt. Diablo Blvd. corridor in Walnut Creek, as identified in the Downtown Walnut Creek Facilities Plan. Systematically replace or renovate small diameter sewers to minimize overflows, limit the quantity of rainfall entering the collection system, control future maintenance requirements and costs, and improve the level of service provided (as measured by stoppages, private property damage, impacted traffic, entry onto private property) to the residents/ratepayers. The ongoing TV inspection program will be the major source of these future projects. Identify, evaluate, and schedule remediation for concrete pipes. Identify and restore sewers damaged or threatened by storms or found to be structurally deficient by CSO. Rehabilitate or replace sewers along North Main between Civic Drive and Carlback Avenue in Walnut Creek, as identified in the Downtown Walnut Creek Facilities Plan. Rehabilitate or replace sewers within the Locust Street corridor in Walnut Creek, as identified in the Downtown Walnut Creek Facilities Plan. Twenty million gallons of relief capacity for the existing A -Line near the treatment plant could be achieved by rehabilitating the old 39 inch Trunk No. 1. Regulatory Compliance/Planning/Safety Projects — 2016 Capital Improvement Plan Project Title Year Location Description Manhole Remote Level Monitoring Collection System Planning Ongoing Ongoing Throughout the collection system Throughout the collection system Identification and modification of manholes with the installation of remote level monitoring products to alert dispatch or on-call crew members via cell phone of a potential overflow or stoppage. Identifies, evaluates, and schedules short- and long-term sewer capacity projects and provides design flow rates for major facility plans. The previous Collection System Master Plan Update (2010) identified capacity deficiencies in the following trunk sewers. The expansion projects to correct these deficiencies are defined below. However, this Plan will be reevaluated under the Comprehensive Wastewater Master Plan in the Collection Systems. 176 Ten -Year Capital Improvement Plan Collection System Expansion Projects - 2016 Capital Improvement Plan Project Title Year Location Description Contractual 2022 Mt. Diablo Blvd. Assessment Districts Ongoing Trunk Sewer Expansion Program Lancaster Road, Walnut Creek, TR 13-600 Walnut Boulevard, Walnut Creek, TR 29- 200, Phase 1 Martinez Alhambra Avenue Trunks Lafayette — Happy Valley Road Walnut Creek — Palmer Road A-line Relief Interceptor, Phase 2B Development Sewerage Diablo Road, Danville, Trunk 35-400, Phase 1 Lafayette Lower Pleasant Hill Road Trunk Nelson Avenue Sewer Replacement San Ramon Schedule C Interceptor, Phase 2 Ongoing 2019 2023 Throughout the service area Throughout the collection system Lancaster Rd. and Meadow Rd. In Walnut Blvd. from Homestead Ave. to Norlyn Drive In Alhambra Ave. 2018 from Highway 4 to C St. In Happy Valley 2020 Rd. from Baker to Franklin In Palmer Rd. between Sylvan Rd. and Hawthorne Dr. From Galaxy Way to Willow Pass Rd. along the bank of Walnut Creek 2023 2024 Ongoing 2024 2024 2024 2024 Throughout the collection system Easement south of Highbridge Ln. to North of Green Valley Creek Pleasant Hill Rd. from Old Tunnel Road to north of Olympic Blvd. Easement from Bates Ave. to Nelson Ave. in Concord San Ramon between Norris Canyon Dr. and St. John Court Rehabilitate or replace sewers within the Mt. Diablo Blvd. corridor in Walnut Creek, as identified in the Downtown Walnut Creek Facilities Plan. Provides a financing mechanism for the extension of public sewers into areas which are currently served by septic tanks. Systematically upsize and increase the capacity of trunk sewers to prevent sewer overflows and accommodate planned growth as identified in the Collection System Master Plan. Replace approximately 5,100 feet of the existing trunk sewer with 15- to 18 -inch lines. Replace approximately 7,000 feet of the existing trunk sewer with 18- to 24 -inch lines. Replace approximately 5,700 feet of the existing trunk sewer with 18- to 24 -inch lines. Replace approximately 3,200 feet of the existing trunk sewer with 15- to 18 -inch lines. Replace approximately 1,000 feet of the existing trunk sewer with 15 inch line. Approximately 4,000 feet of new 72 -inch line. Provides for capitalization of District labor and other expenses for planning, design, and construction of developer installed and contributed main sewer facilities. Replace approximately 600 feet of existing trunk sewer with 33 -inch line. Replace approximately 3,500 feet of existing trunk sewer with 21 inch line. Replace approximately 1,700 feet of existing trunk sewer with 18 -inch line. Replace approximately two miles of 36 -inch gravity sewer. 177 Ten -Year Capital Improvement Plan The Asset Management Plan and the Comprehensive Wastewater Master Plan will ultimately be used to provide recommendations for the renewal and rehabilitation of the pumping stations. Collection System Expansion o'ect Titl Lower Orinda Pumping Station Force Mains Orinda Crossroads Pumping Station Force Mains Moraga Pumping Station Force Mains Concord Industrial Pumping Station Replacement Clyde Parallel Force Main PS Equipment and Piping Replacement Pump Station Safety Improvements Program Buchanan North Pumping Station Upgrades Bates Boulevard Pumping Station Upgrades Moraga Pumping Station Grinder Moraga Diesel Replacement 178 1 Projects — 2016 Capital Improvement Plan Year 2018 2019 2022 2022 2023 ongoing ongoing 2020 2021 2017 2024 Description Evaluate the condition of the existing force mains, implement any needed rehabilitation, and install a third force main for reliability. Evaluate the condition of the existing force mains and implement any needed rehabilitation. Evaluate the condition of the existing force mains and implement any needed rehabilitation. Evaluate the flows from the North Concord service area and additional flows that may come from the development of the Concord Naval Weapons Station.This information will be utilized to install a new station in the same or different location. Evaluate elimination of the Clyde and Bates Avenue Pumping Stations. Evaluate the potential to eliminate the Clyde Pumping Station as the Concord Naval Weapons Station is developed. If the station cannot be eliminated, a new parallel force main will be constructed to ensure reliable operation of the pumping station. Replace or recondition failed and obsolete pumps, piping, valves, electrical, instrumentation, and other support equipment. Investigate the presence of hazardous materials requiring abatement and perform remediation efforts to reduce the potential for exposure. In case the Buchanan North PS is not replaced by a gravity sewer, it will need to be renovated. Evaluate and implement needed improvements. Evaluate and install a grinder to eliminate rag and disposable wipe clogging issues. Evaluate condition and complete rehabilitation or replacement of the existing diesel engine in order to allow adequate runtime and comply with emission requirements. Ten -Year Capital Improvement Plan General Improvements Program This program addresses the property and equipment needs of the District. Specific projects include property acquisition, improvements to the District's buildings and other District properties, information system and data management upgrades (computer hardware and software), and other miscellaneous equipment, including vehicles. This program includes an Asset Management Program subprogram. This General Improvements Program is dedicated to funding the property, equipment, office and corporation yard improvements, map production, and information technology needs of the District. The General Improvements Program also provides funding for activities associated with the capital program, such as capital project legal expenses and preparation of the CIB/CIP each year. The focus of the General Improvements Program over the next ten years will be the equipment budget, improvements in the District's management information systems, seismic upgrades to various District buildings, and development of an Asset Management Program. While consistent investment in our treatment and collection systems has occurred over the last 30 years, the District office and other buildings have not had consistent capital improvements. With most of these buildings over 25 years of age, the CIP includes more projects for renovations of the interiors and exteriors of the buildings, such as upgrading kitchen and lunch rooms, painting or sealing walls, replacing ceiling tiles, upgrading lighting fixtures, and replacing worn or outdated flooring and furniture, as well as bringing the buildings up to current seismic standards. General Improvements Projects - 2016 Capital Improvement Plan Project Title CSO Vehicle Maintenance Building HOB Improvements - Long Term General Security and Access Year Description 2018 Ongoing Improvements to the CSO Vehicle Maintenance Building and the attached office structure were not included in the new CSOD Facility Project and will be undertaken separately. This project will evaluate alternatives for repair or replacement of the office building structure attached to the vehicle maintenance structure. Originally built in 1972, the office building has experienced significant differential settlement in the floor slab in recent years that needs to be addressed. Provide capital improvements to the HOB facilities (interior and exterior) in Martinez. This project includes installing alarm systems, adding gates in the perimeter Ongoing security fencing, upgrading security cameras, improving general area lighting, installing fencing and signage. 179 Ten -Year Capital Improvement Plan Recycled Water Program The District will continue to expand its urban landscaping projects in a cost-effective way by linking recycled water pipeline projects with sewer construction projects. Major projects include identifying the infrastructure needed to supply recycled water to the Concord Naval Weapons Station and construction of the Concord Landscape project. District staff will also continue to pursue financial partners identified in the Wholesale Opportunity of Recycled Water study completed in early 2016, such as the refinery recycled water project. This project is not currently budgeted except for small expenditures to cover planning activities. The Recycled Water Program includes projects to meet the District's goal of developing additional cost-effective recycled water customers. Capital expenditures over the next ten years are primarily focused on planning to develop a large scale industrial reuse project (such as the refineries or power plant use) and construction of the Concord Landscape Project, which was awarded state and federal grant funding. Budget is also included for completing the remaining connections to landscape irrigation customers in the Zone 1 Project Area located in Pleasant Hill, Concord, and Martinez near the I-680 freeway, and for planning work associated with providing recycled water to the proposed development at the Concord Naval Weapons Station site. No budget is currently provided for implementation of a large-scale industrial reuse project; however, budget is included for planning work and for continuing efforts to obtain outside funding assistance. 180 Ten -Year Capital Improvement Plan Capital Improvement Expenditures This plan covers the ten-year period from FY 2016-17 through FY 2025-26. The plan includes projected expenditures totaling $413,400,000 (in 2016 dollars). In addition to providing the basis for policy decisions concerning the District's long range Capital Improvement Program and management of the Sewer Construction Fund, the CIP also serves as the framework for fee analysis and is the basis for the FY 2016-17 CIB (the first year of the CIP). A summary of the ten years of planned expenditures by program, without inflation, is contained in Table 1. Table 1 —Ten -Year Program Expansion-Upgrade/Replacement Estimated Expenditures 181 Ten-year Program Estimated Expenditures (2016-2026) Summary by Program (In 2016 Dollars) EEEE RRER MR EEEE EEEE 2222 8888 MR RR5i 8888 RELi EEEE 4,6064. 2222 8888 EEEEER ERRRRR 888888 EEEEEE EEERRA EEEEEE EERIER 222222 888888 EEEEEE 888888 EEEEER 74, EEplEER 2,222 EEE 888 EEE EEk RRR 222 888 EEE 888 RRR 222 888 EEEERR 888 88 EEEERR 888 22 EEE EE 0,0 888 88 22= 22 EEHEi 413,408,599 w O a N M W O N N O O O O O O N W O N N ran' w O m N M W O O N mM O 0 N M W O O O M 41,271,843 1 $ W N O M W Ten -Year Capital Improvement Plan Comprehensive Wastewater Vaster Plan The District started working on a Comprehensive Wastewater Master Plan project in June 2016. This project is developing a Comprehensive Wastewater Master Plan (CWMP) that will determine the future capital improvement needs, and priorities for the District's collection system, wastewater treatment plant, and recycled water facilities. This project is expected to be completed early in 2017. The majority of the District's existing treatment plant facilities were constructed in the late 1970s and early 1980s following the passing of the Clean Water Act, and some of the collection system facilities and piping were constructed as early as the 1940s and 1950s. The District recognizes the need to address aging infrastructure and, as a result, is developing an Asset Management Plan. Due to potential changes in future state and/or federal water, air, and solids regulations, there is a need to develop a CWMP that coordinates regulatory -driven changes with aging infrastructure needs and other capacity related and optimization improvements. Potential regulatory changes include: - Changes to existing final effluent limits to address nutrients, selenium, contaminants of emerging concern, and others; - Changes to California/National Toxics Rules, 303 (d) listed pollutants and micro pollutants, and new virus - based disinfection criterion; Reductions in greenhouse gas emission cap and trade program thresholds; - Compliance with Federal 129 sewage sludge incineration rules, changes to air emission limits, and biosolids handling/management and disposal regulations; - Recycled water, including potential coordinated projects with water agencies on indirect and even direct potable reuse requirements; and - Collection system regulatory requirements. A key deliverable of the CWMP will be a recommended Capital Improvement Plan (CIP) for the next 20 -year planning horizon. The recommended CIP will include descriptions, rationales, and estimated costs for collection system and wastewater treatment plant capital improvement projects and ongoing programs in order to address aging infrastructure, meet existing and anticipated regulatory requirements, accommodate planned growth, optimize energy use, and implement the District's vision for a "plant of the future" that is consistent with the District's Strategic Plan. For example, the CWMP will be a critical tool used by the District to implement the following strategies from the District's Strategic Plan (Fiscal Year 2016-17): - Meet Regulatory Requirements for the Good of the Community and Environment by striving to achieve 100% permit compliance in air, water, land, and other regulations, and by striving to reduce the number of sanitary sewer overflows by continuing Best Management Practices. - Be a Leader in the Wastewater Industry by using sustainable practices that minimize waste, maximize resources, protect the ratepayer, improve the community, and embrace innovation. Maintain Reliable Wastewater Infrastructure by updating the Capital Improvement Program through prioritization, risk analysis, while focusing on the sustainability of customer service, environmental needs, and economic demands. 182 Ten -Year Capital Improvement Plan The CWMP is critical for maintaining a high level of service, establishing long term, fiscally responsible policies for our customers, and providing a clear direction for the District. To accomplish this, the CWMP will: 1. Confirm CIP projects, costs, and site layouts for future facilities. 2. Identify linkages among the major capital improvement projects and repair and replacement strategies such that the projects can be resorted and rescheduled as changes in planning assumptions and needs occur. 3. Identify triggers for implementing applied research (if applicable), preliminary design, design, and construction of the recommended capital improvement projects in order to determine efficient "just -in -time" project implementation. 4. Identify new or updated policies, programs, and guidelines for Board consideration to address overall program implementation including project prioritizations, implementation costs, project delivery methods, potential funding sources, and an estimated schedule for implementing plan elements. 5. Confirm and incorporate operations, maintenance, and energy management strategies. 6. Accelerate and coordinate condition assessments with implementation of the Asset Management Plan and confirm long-term repair and replacement strategies. Some of these potential future projects are not all currently included in the District's CIP. The District's CIP will be updated annually as projects are clarified and coordinated with the District's CWMP. 183 Debt Program Debt Program The District has utilized a pay-as-you-go philosophy and uses debt financing for large capital improvements brought about by regulatory changes or other unforeseen factors. Currently the District is repaying a State of California Water Reclamation Loan and 2009 Revenue Bonds. The District may issue new bonds in the future based on the results of comprehensive wastewater master plans that are currently in process. The District's Debt Service is funded by ad valorem tax and interest income. Debt service is projected at $3.8 million. Table 1 summarizes the Debt Service Fund Budget. Table 1 - Debt Service Fund Budget Summary ebt Service Fund FY 2016-1 Debt Service Revenue: Reserve Account Bond Interest Income Ad Valorem Tax (portion allocated to Debt Service) $42,497 $3,748,310 $3,790,807 Debt Service Expense: 2009 Bond Interest Payment and Amortized Costs, Tess Tax Subsidy on BAB $1,275,346 6.8% reduction of tax subsidy due to congressional sequestration Recycled Water Loan Interest Payment $28,342 $9,363 Total Interest Payment and Amortization Costs $1,313,051 p 2009 Bond Principal Payment $2,300,000 Recycled Water Loan Principal Payment $177,756 Total Principal Payments $2,477,756 Total Debt Service Interest, Amortized Costs and Principal Payments $3,790,807 Fund Balance - Beginning of Year Revenue over Expense Transfer from/(to) O&M or Capital Fund Balance - End of Year 184 Debt Program Revenue Bonds The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B (Bonds) were issued for $19,635,000 and $34,490,000, respectively, and were issued on November 12, 2009 and December 3, 2009. The Series A Bonds are federally taxable "Build America Bonds" which have a rate subsidy from the Federal Government. Yields on this series range from 3.45% to 3.78% net of the subsidy. The Series B Bonds are tax exempt bonds that were used to refund the 1998 and 2002 bond issues and raise an additional $30 million in new proceeds with yields ranging from .40% to 3.79%. The two bonds total $54,125,000, and are secured by a pledge of tax and net revenues of the wastewater system. Both bonds will be fully amortized as of September 1, 2029. Reclamation Loan The District entered into a contract with the State of California State Water Resources Control Board (Board), which advanced the District $2,916,872 for design and construction costs for projects related to recycled water treatment programs. The District must repay advances from the Board over a 20 -year period ending in FY 2017- 18. Figure 1 and Table 2 summarize the District's debt service obligations. Figure 1 - Debt Service by Type $6,000,000 . $5,000,000 • $3,000,000 • n Ts O 0 $2,000,000 • $1,000,000 • $0 .11111111111111111: 011111111111111 moi`' 0� (f) AlA, A`' 0 05 N1 �� N'', NA 1C) til :-1,'"5 ,-1,(0 tivA ti°' p�Dt fro p0 p0 0'1. pD, Ob p0 O\ O\-1. �'1, 1Dt 1� �0' 10 1'1: vD, tiV 10 Fiscal Year ■1994/1998/2002 Refunding Revenue Bonds ■2009 Bonds ■Recycled Water Loan 185 Table 2 - Debt Summary Fiscal Year Principal Amortization & Interest Total Debt Service 2009 Bonds Principal Amortization & Interest Total Debt Service Recycled Water Loan Principal Interest 1994-95 - $688,127 $688,127 1995-96 - $1,458,830 $1,458,830 1996-97 $755,000 $1,459,741 $2,214,741 1997-98 $790,000 $1,421,245 $2,211,245 1998-99 $835,000 $1,150,177 $1,985,177 $139,194 $47,925 1999-00 $725,000 $1,221,898 $1,946,898 $114,900 $72,219 2000-01 $1,245,000 $1,181,356 $2,426,356 $1 17,887 $69,232 2001-02 $1,285,000 $1,195,057 $2,480,057 $120,952 $66,167 2002-03 $1,330,000 $1,832,680 $3,162,680 $124,097 $63,022 2003-04 $1,375,000 $1,790,547 $3,165,547 $127,323 $59,796 2004-05 $1,995,000 $1,719,372 $3,714,372 $130,634 $56,486 2005-06 $2,060,000 $1,641,214 $3,701,214 $134,030 $53,089 2006-07 $2,135,000 $1,559,500 $3,694,500 $137,515 $49,604 2007-08 $2,210,000 $1,472,113 $3,682,113 $141,090 $46,029 2008-09 $2,300,000 $1,379,326 $3,679,326 $144,759 $42,360 2009-10 $2,390,000 $190,068 $2,580,068 $1,255,607 $1,255,607 $148,522 $38,597 2010-11 $3,460,000 $2,027,168 $5,487,168 $152,384 $34,735 2011-12 $3,465,000 $1,888,601 $5,353,601 $156,346 $30,773 2012-13 $3,605,000 $1,775,376 $5,380,376 $160,411 $26,708 2013-14 $3,720,000 $1,941,016 $5,661,016 $164,582 $22,538 2014-15 $3,865,000 $1,474,513 $5,339,513 $168,861 $18,258 2015-16 $2,210,000 $1,375,080 $3,585,080 $173,251 $13,868 2016-17 $2,300,000 $1,275,346 $3,575,346 $177,756 $9,363 2017-18 $2,405,000 $1,198,221 $3,603,221 $182,377 $4,742 2018-19 $2,480,000 $1,103,530 $3,583,530 2019-20 $2,580,000 $1,000,996 $3,580,996 2020-21 $2,685,000 $902,873 $3,587,873 2021-22 $2,785,000 $792,406 $3,577,406 2022-23 $2,900,000 $673,794 $3,573,794 2023-24 $3,015,000 $549,015 $3,564,015 2024-25 $1,905,000 $469,232 $2,374,232 2025-26 $1,975,000 $387,397 $2,362,397 2026-27 $2,060,000 $300,296 $2,360,296 2027-28 $2,145,000 $209,576 $2,354,576 2028-29 $2,235,000 $115,059 $2,350,059 2029-30 $2,330,000 $16,533 $2,346,533 Final Payment made from Reserve Fund Total Debt Service $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 $187,119 Note: 2009 Bond debt service reflects the original repayment schedule amounts. Changes to GASB rules and sequestration of Build America Bond refunds have changed actual total debt service in some years. Actual debt service amounts are in the CAFR and audited financial statements. 186