HomeMy WebLinkAbout11. Att. 1 - Final Draft FY 2018-19 District Budget 1
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June 7, 2018 Regular Board Meeting Agenda Packet- Page 129 of 446
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Board of Directors
A -
David R.Williams TadJ.Pilecki Michael R.McGill JamesA.Nejedly Paul H.Causey
President Pro Tem Director Director President Director
DISTRICT MANAGEMENT
Roger S. Bailey General Manager
Ann Sasaki Deputy General Manager, Director of Operations
Philip Leiber Director of Finance and Administration
Jean-Marc Petit Director of Engineering and Technical Services
Katie Young Secretary of the District
Kent Alm District Counsel
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Table of Contents
GeneralManager Budget Message......................................................................................................................7
DistrictOverview............................................................................................................................................................l l
Vision,Mission,and Values...........................................................................................................................................12
OrganizationalStructure.................................................................................................................................................13
StrategicPlan Summary..................................................................................................................................................14
Effective Utility Management Attributes........................................................................................................................15
FY2018-20 Strategic Plan..............................................................................................................................................16
FinancialOverview..............................................................................................................................................23
FinancialPlanning Policies.................................................................................................................................25
FiscalReserves Policy....................................................................................................................................................25
Basisfor Budgeting.........................................................................................................................................................25
Debt Management and Continuing Disclosure Policy....................................................................................................26
InvestmentPolicy...........................................................................................................................................................26
BudgetCalendar Process................................................................................................................................................27
KeyBudget Events.........................................................................................................................................................28
CurrentFinancial Plan....................................................................................................................................................29
FinancialSummary.............................................................................................................................................31
Sourcesof Funds.............................................................................................................................................................32
SewerService Charge(SSC)..........................................................................................................................................35
Useof Funds...................................................................................................................................................................38
O&M Budget Overview..................................................................................................................................................39
Staffing, Salaries,and Benefits.......................................................................................................................................41
BudgetedFull Time Equivalents.....................................................................................................................................44
Staffing Changes from Classification Study...................................................................................................................44
Variancesin the O&M Budget........................................................................................................................................45
OperatingDepartments...................................................................................................................................................48
Historical Variances in O&M Spending.........................................................................................................................49
Capital Improvement Budget(CIB)................................................................................................................................50
ReserveProjections.........................................................................................................................................................51
DebtService....................................................................................................................................................................53
Long-Term Spending Trend............................................................................................................................................54
OperatingDepartments......................................................................................................................................55
AdministrationDepartment.............................................................................................................................................57
Engineering and Technical Services Department...........................................................................................................87
OperationsDepartment.................................................................................................................................................103
Self-Insurance Program.................................................................................................................................... 125
CapitalImprovement Program........................................................................................................................ 133
Ten-Year Capital Improvement Plan..............................................................................................................219
DebtProgram....................................................................................................................................................233
Supplemental Data and Glossary.....................................................................................................................239
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General Manager Budget Message
�- Board of Directors:
- I am pleased to present the Central Contra
Costa Sanitary District's (Central San)Fiscal
Year(FY) 2018-19 combined budget. The
budget format improves ease of use and
increases transparency as it combines the
Operations and Maintenance, Capital
Improvement, Self-Insurance, and Debt
Service Budgets in one document.
zx Foundation for Success
During the current fiscal year, Central San has worked to set a solid
14 _ foundation for the coming years with the integration of several key planning
documents. These plans include an updated two-year Strategic Plan,an
updated financial plan for a review of the second-year rate adjustment
,,. approved last year for FY 2018-19,and an updated proposed Ten-Year
Capital Improvement Plan(CIP). The updated CIP includes further
�.0 prioritization in concert with a concentrated effort to minimize costs while
still meeting critical infrastructure needs set forth in the Comprehensive
Wastewater Master Plan. We have continued the theme of continuous
improvement and optimizing business processes through the establishment of
.' an internal audit function,implementation of new software programs to gain
efficiencies,and recognition as one of a select number of"Leading Utilities
of the World"inductees. These improvements will serve to enhance our
business practices, control operating costs,and provide another year of a flat
operating budget.
As Central San considers switching to CalPERS for its health insurance
..
coverage, significant savings are expected from the transition to more cost-
effective employee/retiree healthcare plans. This change will provide the
same coverage at a reduced cost through membership in a larger risk pool.As
Central San implements several large-scale projects in both the treatment
plant and collection system to replace aging infrastructure, our continued
focus on financial discipline will aim to achieve our goals while keeping rates
__ competitive. Our effort to do so is made more visible with this enhanced
�'~ budget document,which follows best practices in terms of transparency and
alignment with our planning documents.
t AW
/ Acknowledging our Past Success
The past fiscal year has been productive and successful for Central San.
- Every division of our team has effectively fulfilled our Strategic Plan
goals, while maintaining the best reliability record and customer service
_ standards in the Bay Area. We are extremely proud of the work we do, and
year after year we strive to be better, holding ourselves to the highest
levels of efficiency and effectiveness. Aligned with six of our FY 2017-18
goals, here is a list of some of our major accomplishments:
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General Manager Budget Message
►Provide exceptional customer service ►Develop and retain a highly trained and
• Successful completion of the third Central San innovative workforce
Academy, a program which focuses on educating • Completed Recruitment Training for all District
our customers on the mission of Central San and employees.
how it is fulfilled. • Held various human resource topic related
• Hosted a week-long collection drive for the 20ffi "brown bag"sessions for all District employees.
Anniversary of the Household Hazardous Waste • Held the second Management Academy and
Collection Facility(HHWCF), leading to our started the second Supervisory Academy.
highest customer participation level in 20 years. • Implemented the Central San Mentorship
• Developed household hazardous waste Program on an annual basis.
educational videos that promoted important • Completed the Roles and Responsibilities of
Central San programs and services reaching tens Public Employees Training for all District
of thousands of viewers. employees.
• Increased the reach of our student pollution • Negotiated Kaiser Permanente and Delta Dental
prevention educational programs. These students rate decreases of 5%and 4%,respectively, for FY
will play a role in reducing pollution and 2017-18 premium rates,resulting in an annual
supporting the environment for decades to come. savings of$297,130.
• Focused outreach efforts to showcase completion • Partnered with the California Water Environment
of major infrastructure projects that will increase Association(CWEA)to assist in the development
reliability and add value for customers. of the state-wide CWEA Testing Program.
►Strive to meet regulatory requirements ►Maintain a reliable infrastructure
• Twenty consecutive years of 100%compliance • Completed construction of the Pleasant Hill-
with our National Pollutant Discharge Grayson Creek Trunk Sewer Project,whose
Elimination System permit. scope of work included installation of up to
• Increased collection at the HHWCF and 10,000 feet of trunk sewers.
pharmaceutical drop-off sites. • Completed construction of two treatment plant
• Reduced sanitary sewer overflows. projects: Pump and Blower Building Seismic
Upgrades and the Co-Gen Optimization Project.
►Be a fiscally sound and effective water . Cleaned 759 miles of sanitary sewers and
sector utility televised 167 miles of sanitary sewers.
• Maintained a AAA credit rating with Standard&
Poor's. ► Embrace technology, innovation, and
• Established a combination trust for Pension and environmental sustainability
Other Post-Employment Benefits(OPEB). Successfully renegotiated a Memorandum of
• Established a new IRS Section 115 Pension Trust Understanding with Contra Costa Water District
and funded$5.4 million toward unfunded and Santa Clara Valley Water District to
liabilities. investigate the feasibility of water/wastewater
• Fully funded the OPEB actuarially determined agencies working together to use recycled water
contribution and paid an additional$2.5 million to serve industrial customers to free up drinking
toward the unfunded liability. water supply.
• Seventeen consecutive years of receiving the Inducted into the Leading Utilities of the World
Government Finance Officers Association award global network of the most successful and
for financial reporting excellence. innovative water and wastewater utilities.
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General Manager Budget Message
Setting Strategic Priorities
The Budget reflects the Board's policies and provides the resources necessary to accomplish Central
San's mission to protect public health and the environment, overcome our challenges, and achieve the
goals laid out in the FY 2018-20 Strategic Plan. Central San is committed to improving the quality of
services we provide to our customers and will positively respond to the following challenges:
Challenge Primary Response
Maintaining and upgrading aging infrastructure, Implement the recommendations of the
including increasing capital improvement Comprehensive Wastewater Master Plan
investment and the internal resources to deliver (CWMP)with significantly increased capital
on these increased levels of capital spending. investment beginning in FY 2018-19.
Addressing concerns and educating customers Continue commitment to customer outreach,
regarding required revenue/resources to replace prioritization of CIP, balance capital spending
aging infrastructure and meet regulatory with affordability/rate impact concerns, and
requirements. continue to focus on the most cost effective
alternatives to maintain reliability and meet
regulatory requirements.
Increasing stringent air regulation requirements. Anticipate changing regulations and plan for
cost-effective alternatives to meet requirements.
This is a continuing effort.
The need for all water sector agencies to play a Partner with agencies to find water solutions
role in maintaining a sustainable water supply benefiting the region and state. This includes
with recent drought experiences and the looking for creative solutions such as water
continuing effects of climate change. exchanges and increased interagency cooperation.
This is a continuing effort.
Ever-increasing focus on resource recovery and Test and plan for alternative processes,
sustainability. equipment, and technology that are sustainable
and cost effective. This is a continuing effort.
Fostering employee engagement to meet the Recruit, train, and retain high quality employees.
challenges laid out above. This is a continuing effort.
Increasing cost of employee benefits. Recognizing that health insurance costs are a
primary expense of employee and retiree benefits,
the District is considering a switch to CalPERS
health insurance with the goal of reducing costs
without adversely impacting level of service.
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General Manager Budget Message
Meeting our Strategic Goals
The FY 2018-19 budget provides funding for Central San to continue progress in meeting the following
goals set by the Board and outlined in the FY 2018-20 Strategic Plan:
• Provide exceptional customer service and maintain an excellent reputation in the community
• Strive to meet regulatory requirements
• Be a fiscally responsible and effective wastewater utility
• Recruit, develop and retain a highly trained and safe workforce
• Maintain a reliable infrastructure
• Embrace technology,innovation,and environmental sustainability
Continuing Our Progress
The FY 2018-19 budget will enable us to address our challenges and successfully complete the goals for
FY 2018-19 outlined in our Strategic Plan, all while continually optimizing our operations. I want to
thank the Board for providing the vision,resources, and support necessary to achieve these goals and
respond to future challenges. I want to also thank our 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 service area rely on us for a very basic but critical
service. Accordingly, the proposed budget represents our commitment to serving them with excellence.
By planning for the future, making sound financial decisions, implementing new technologies and
processes, and maintaining a highly skilled and dedicated workforce, Central San will remain a world-
class organization that provides our customers with exceptional service and value,now and well into the
future.
I
Roger S. Bailey
General Manager
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District Overview
Introduction
Suisun Bay
Central San was established in 1946 and is
located about 30 miles east of San Francisco. ` ;- 4', Pittsburg
Martinez Ab
Central San provides wastewater services for
approximately 484,200 residents and more `"� Concord
than 3,000 businesses in central Contra Costa
Pleasant Hill
County. The service territory covers 182 square Clayton
miles. This area includes Alamo,Clyde,
Walnut Creek
Danville, Lafayette,Martinez,Moraga,
Orinda,Pacheco, Pleasant Hill, San Ramon, 24' Lafayette
Orinda IT
Walnut Creek, and unincorporated areas
c,
within central Contra Costa County.Central
San also treats wastewater for residents of
Concord and Clayton under a 1974 contract Danville
with the City of Concord.
Oakland
San Ramon
a
N
Central San serves 484,200 customers.
Sewage collection and wastewater treatment; Household Hazardous Waste (HHW) disposal
for 344,600 people. These services are provided over a 145-square-mile area.
Wastewater treatment&HHW disposal far 140,900 people in Concord &Clayton by contract.
These services are provided over a 30-square-mile area.
HHW disposal only. These services are provided over a 9-square-mile area.
Central San headquarters,treatment plant,HHW Facility and Residential Recycled Water Fill Station.
Collection System Operations headquarters.
Central San operates and maintains more than 1,500 In addition to its wastewater and recycled water
miles of sewer pipelines, 18 pumping stations,and a responsibilities,Central San operates and maintains
wastewater treatment plant that cleans and disinfects an HHW Collection Facility that collects,recycles,
an average of 34 million gallons of wastewater per or safely disposes of more than 2 million pounds of
day.Most of this treated effluent is discharged into hazardous waste from approximately 24,000
Suisun Bay.Approximately 2.5 million gallons per residential and small business customers each year•,
day receives further treatment to produce recycled and a Pharmaceutical Collection Program with 13
water that is ideal for non-potable purposes such as locations that collect and safely dispose of more than
landscape irrigation and industrial processes. 12,500 pounds of unwanted drugs each year.
Since its inception in October 2014,Central San's
Residential Fill Station has distributed nearly 21
million gallons of recycled water to our residential
customers.
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�CCCSd CENTRAL SAN
C EN TRAL CON TRA COSTA SANJTARY D1STRiCT
VISION , MISSION ,
VALUE I S
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
OUR VALUES
People Community Principles Leadership and
•Value customers •Value water sector • Be truthful and honest Commitment
and employees partners . Be fair,hind and • Promote a passionate and
• Respect each other a Fosterexcellent friendly empowered workforce
■Work as a team community relationships ,Take ownership and • Encourage continuous
•Work effectively ■ Be open,transparent responsibility growth and development
and efficiently and accessible • Inspire dedication and
•Celebrate our ■ Understand service top-quality results
successes and learn level expectations • Provide a safe and
from aur challenges . guild partnerships healthful environment
�� • �� �ir r �y l
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Organizational Structure
Central San is governed by a Board of Directors whose five members are elected at-large on a
non-partisan basis and serve a four-year term. The Board appoints the General Manager, the Counsel for
the District, and the Secretary of the District.
Central San is organized into three departments: Finance and Administration, Engineering and
Technical Services, and Operations. The District currently has 290 budgeted full-time employees. This
team of employees is led by a General Manager, a Deputy General Manager, two Department Directors,
and 12 Division Managers.
Central San's main headquarters, Board Room, and treatment plant are located at 5019 Imhoff Place in
Martinez. Central San's collection system operations are headquartered at 1250 Springbrook Road in
Walnut Creek.
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Strategic Plan Summary
For FY 2018-20, Central San has developed a two-year Strategic Plan that establishes policy direction
that will enable Central San to increase efficiencies and continue in its role as a steward of the
environment. The Strategic Plan outlines Central San's core commitments, focused initiatives, and key
performance measurements.
The strategic goals reflect the opportunities and challenges that many water sector agencies face as
we strive to increase quality and minimize the cost of services to our customers. These include the
following:
• Enhanced customer expectations and • Security and emergency response
public awareness concerns
• Aging infrastructure • Sustainable regional water supply
• Stringent regulatory requirements • Increased focus on resource recovery
• Financial constraints
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 several major water sector associations in 2007. The framework is made up of
10 attributes which provide a succinct indication of where effectively managed utilities should focus
and what they should strive to achieve.
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Effective Utility Management Attributes
Product Quality Infrastructure Strategy and Performance
Produces "fit for purpose"water that meets or Understands the condition of and costs
exceeds full compliance with regulatory and associated with critical infrastructure assets.
reliability requirements and is consistent with
customer, public health, ecological, and Enterprise Resiliency
economic needs. Ensures utility leadership and staff work
together internally, and with external partners,
Customer Satisfaction to anticipate, respond to, and avoid problems.
Provides reliable, responsive, and affordable
services in line with explicit, customer-derived Water Resource Sustainability
service levels. Ensures the availability and sustainable
management of water for its community and
Employee and Leadership Development watershed, including water resource recovery.
Recruits and retains a workforce that is
competent, motivated, adaptive, and safety Community Sustainability
focused. Takes an active leadership role in promoting
and organizing community sustainability
Operational Optimization improvements through collaboration with local
Ensures ongoing, timely, cost-effective, reliable, partners.
and sustainable performance improvements in
all facets of its operations in service to public Stakeholder Understanding and Support
health and environmental protection. Engenders understanding and support from
stakeholders (anyone who can affect or be
Financial Viability affected by the utility), including customers,
Understands the full life-cycle cost ofutility oversight bodies, community and watershed
operations and the value of water resources. interests, and regulatory bodies for service
levels, rate structures, operating budgets, capital
improvement programs, and risk management
decisions.
Connecting Effective Utility Management with District
Strategic Plan and Initiatives
The following table summarizes the goals, strategies, and initiatives outlined in the FY 2018-20
Strategic Plan. It allows alignment between each initiative,the EUM attribute, and our core values.
For a complete copy of the Strategic Plan, including initiatives and key performance metrics,
please visit centralsan.org.
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FY2018-20 Strategic Plan
A jnt Reputation in the Community
Strategy Initiative E U M Attribute District Values
Provide high-quality customer service. Customer People,
Satisfaction Community
Invest in business process changes Customer
and technologies to effectively increase Satisfaction, Leadership and
access to District information and Operational Commitment
Build External promote customer care, convenience, Optimization
Customer and self-service.
Relationships and
Awareness Increase customer understandingand
Stakeholder People,
support for key District initiatives, Understandingand
programs, and services. Support Community
Build and maintain relationships with Stakeholder
federal, state, and local elected officials Understanding and Community
and stakeholders. Support
Establish opportunities for internal Enterprise
partnerships and cross-divisional People
Foster Employee
collaborations. Resiliency
Engagement and
Interdepartmental Employee and
Collaboration Cultivate employees' understanding of Leadership
District operations and their role in the Development, People,
Community
agency's success. Enterprise
Resiliency
Continue to participate in industry trade Employee and People,
organizations and apply for Leadership Community,
certifications and awards. Development Leadership and
Commitment
Maintain a Strong
Reputation in the Continue to participate in CalWARN to Community Community, Principles
Community provide mutual aid to sister agencies. Sustainability
Minimize impacts to residents and Customer People,
businesses during maintenance or
Satisfaction Community
construction work.
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Goal 2 -Strive to Meet Regulatory Requirements
Strategy Initiative EUM Attribute District Values
Meet existing regulations. Product Quality Principles
Foster relationships with regulatory Stakeholder
agencies. Understanding and Community
Strive to Achieve Support
100% Permit
Compliance in Air, Track proposed and pending legislation Stakeholder
Water, Land and or regulatory changes; plan for possible Understanding and Community
Other Regulations implementations. Support
Actively manage greenhouse gas
(GHG) emissions in the most cost- Community Principles
effective and responsible manner. Sustainability
Complete the collection system Infrastructure Leadership and
scheduled maintenance on time and Strategy and Commitment
optimize cleaning schedules. Performance
Strive to Minimize
the Number of
Sanitary Sewer Continue the pipeline condition
Overflows assessment and cleaningquality Infrastructure
q Y Leadership and
assurance program using the system- Strategy and Commitment
wide CCTV program. Performance
Review all existing Board Policies every Enterprise
Comply with All
two years to ensure relevancy. ResiliencyPrinciples
Federal, State, and
Local Regulations
Related to District Re-examine existing Department and
Administration Administrative Procedures to ensure Enterprise
compliance with applicable laws and Resiliency Principles
regulations.
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. . .
Strategy Initiative EUM Attribute District Values
Ensure rate structure and fees are Customer
consistent with cost-of-service Satisfaction, Community, Principles
principles. Financial Viability
Present alternative financial plans to
the Board in FY 2018-19 for necessary
rate adjustments for FY 2019-20 Financial Viability,
Conduct Long- Infrastructure
Range Financial onward, including considering the Strategy and Community, Principles
Planningpotential issuance of debt to fund the
CIP in conjunction with the overall Performance
financial plan.
Develop alternatives for new revenues
and funding sources (e.g., interagency Leadership and
agreements, services, and recycled Financial Viability Commitment
water).
Effectively manage the cost of Community,
employee benefits. Financial Viability Principles
Carry out targeted audits of Operational People,
critical/high risk functions or Optimization, Principles,
Enterprise Leadership and
processes. Resiliency Commitment
Manage Costs
Re-engineer business processes and Operational
People,complete optimization studies to Optimization,
Leadership and
identify opportunities to reduce costs Enterprise Commitment
and align with best practices. Resiliency
Evaluate and apply risk management Enterprise Principles
practices to minimize loss. Resiliency
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7trategyInitiative EUM Attribute District Values
Employee and People,
Assess,develop,and implement Leadership Leadership and
Ensure Adequate District-wide training needs. Development Commitment
Staffing and
Training to Meet
Current and Future
Operational Levels
Recruit, develop, and train our future Employee and People,
leaders. Leadership Leadership and
Development Commitment
Employee and People,
Cultivate a positive work culture. Leadership Leadership and
Development Commitment
Enhance
Relationships with
Employees and Employee and
Bargaining Units Sustain and grow collaborative Leadership People,
Community,
relationships with the labor Development,
bargaining units. Enterprise Leadership and
Resiliency
Commitment
Achieve consistent improvement on Employee and People,
State of California and Bay Area Leadership Principles, Leadership
industry injury rate. Development and Commitment
Meet or Exceed
Industry Safety
Standards Enhance the safety culture through Employee and People,
improved training and Leadership Principles, Leadership
communications. Development and Commitment
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•. M
Strategy Initiative EUM Attribute District Values
Develop Ten -Year CIP consistent
with recommendations of the Infrastructure
Comprehensive Wastewater Master Strategy and Leadership and
Commitment
Plan and Asset Management. Performance
Manage Assets
Optimally Continue maintenance on assets Infrastructure
Throughout Their using a reliability-based approach. Strategy and Leadership and
Lifecycle Performance Commitment
Manage current vehicle fleet to Infrastructure Leadership and
provide maximum value. Strategy and Commitment
Performance
Integrate data from the Asset
Management Program into the Infrastructure
analysis of long-term Capital Strategy and Leadership and
Commitment
Improvement needs based on the Performance
Facilitate Long- Ten -Year CIP.
Term Capital
Renewal and
Replacement Operational
Optimization,
Implement the Program Management Infrastructure People,
Information System (PMIS). Strategy and Leadership and
Performance Commitment
Enhance capability to mitigate, Enterprise
prepare for, respond to, and recover Principles
from emergencies. Resiliency
Protect District Evaluate and implement appropriate
Personnel and p
improvements to the Security Enterprise
les
Assets from Program to meet new or evolving Resiliency Principles
Threats and threats.
Emergencies
Improve the potable water system and Community,
enhance water quality testing Product Quality Leadership and
procedures. Commitment
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Strategy Initiative EUM Attribute District Values
Water Resource
Explore partnering opportunities. Sustainability, Community
Community
Sustainability
Continue to support the development Water Resource
Augment the Community,
Region's Water of a demonstration Satellite Water Sustainability, Leadership and
Supply Recycling Facility at Diablo Country Community Commitment
Club. Sustainability
Continue to provide recycled water to Customer Service
residents and businesses; evaluate Satisfaction, Community
and process new customer requests. Water Resource
Sustainability
Reduce Reliance on Explore opportunities for renewable
Non-Renewable energy generation, conservation, and Community Leadership and
Energy efficiency based on the Board's Sustainability Commitment
Energy Policy.
Select and implement new Enterprise
Resource Planning (ERP)system Operational Leadership and
and integrate with linked systems. Optimization Commitment
Encourage the Expand and improve the use of Operational
Review and Testing worthwhile mobile computing and Optimization Leadership and
Commitment
of Technology to communication technologies.
Optimize and
Modernize
Business Continue developing and investing in
Operations cost-effective innovation, leadingand
Operational Leadership and
promising technology, and applied Optimization Commitment
research and development.
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Financial Overview
Central San uses an enterprise fund to account for its operations. We currently have one
enterprise fund, which is comprised of four internal sub-funds:
• Operations and Maintenance (O&M) Running Expense Fund - This fund provides for the general
operations, maintenance, and administration of Central San. Sewer Service Charge (SSC) revenues are
collected by the Contra Costa County Tax Assessor's Office and are remitted to Central San in two
installments in April and December of each year. Central San provides several services, including
wastewater treatment to its customers and the Cities of Concord and Clayton. Central San is
reimbursed annually for the treatment services provided to these two cities. In order for Central San to
pay its ongoing expenses throughout the year, it reserves five months (41.7%) of its gross operating
expenditures at the start of each fiscal year.
• Sewer Construction Fund (Capital 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 expansion needs.
The City of Concord reimburses Central San for a flow-proportional share of the expenses related to
projects impacting the services the City has contracted with Central San to provide. Property tax (ad
valorem taxes) and SSC 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 Central
San in two installments in April and December of each year. In addition, connection fees received
from permits are allocated to the capital fund. In order to meet the cash flow needs of the capital
projects program, Central San reserves 50% of the annual cash-funded portion of the capital projects
budget at the start of each fiscal year. In FY 2018-19, the entire Capital Projects budget will be funded
from revenues. The Capital Projects section of this document provides a table showing the various
sources of revenue funding for each type of capital project. In future years, the financial plan
anticipates a portion of the Capital Projects budget will be funded with bond proceeds.
• Self-Insurance Fund (SIF) - 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 Central San's insurance coverage. Central San has self-insured a portion of its liability and
property risks since July 1, 1986, when the Board approved the establishment of the SIF. Central San
is self-insured for three events up to $500,000 per occurrence for its general and automobile liability
program, for a total of$1.5 million. Maintaining a self-insured retention reduces Central San's
insurance premium expense. In order to help mitigate the financial impacts and maintain
uninterrupted service in the event of an emergency or catastrophic event, Central San 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 Governmental Accounting Standards Board (GASB) 10 liability
amount.
• Debt Service Fund - This fund accounts for activity associated with the payment of Central San's
long-term bonds and loans. Central San's total debt service for FY 2018-19 is $3.6 million, a decrease
of approximately $0.2 million from the $3.8 million budgeted in FY 2017-18. This decrease is due to
the final amortization payment of the recycled water loan in FY 2017-18. A portion of Central San's
ad valorem tax revenue is the primary funding source for the Debt Service Fund.
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Financial Planning Policies
The significant policies that play a role in managing Central San's finances are summarized below:
Fiscal Reserves Policy
There is a strong emphasis placed on maintaining adequate reserves, and having a reserve policy
ensures long-term financial stability. In 2015, the Board adopted Board Policy No. BP 017-Fiscal
Reserves,which set targets for each of Central San's reserve funds. This policy was reviewed and
updated by the Board during FY 2017-18. Key provisions remained generally unchanged, with updates
primarily focusing on providing detail about the usage of the reserves and recognizing new accounts
since the initial policy. Fiscal reserves provide working capital for operations and maintenance
activities; funding for long-term capital improvement requirements; fulfillment of legal, regulatory,
and contractual obligations; mitigation of risk and liability exposures; and cash flow emergencies.
Table 12 shows projected reserve balances as of June 30, 2018 and June 30, 2019.
• O&M 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.
• 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, excluding capital
projects that are to be funded with bond proceeds.
• Self-Insurance Fund Reserves - The Board has set a target of three times the annual retention,
currently at $500,000. In addition, to help mitigate the financial impacts and maintain uninterrupted
service in the event of an emergency or catastrophic event, Central San maintains an Emergency Fund
Reserve balance of$5 million in the self-insurance fund.
• Debt Service Reserve (Bond Reserve) - The 2009 certificates of participation(a type of borrowing)
require the establishment and maintenance of a contingency reserve that is defined in the loan
documents. The balance of the reserve is set at the amount required in the loan documents, typically
one annual payment per loan. The Bond Reserve balance was $4.86 million as of June 30, 2017 and is
forecasted at $4.86 million for both June 30, 2018 and 2019.
Basis for Budgeting
Central San's Comprehensive Annual Financial Report (CAFR)provides detail about the actual
expenditures of the four sub-funds in the Central San enterprise fund. The basis of budgeting for these
sub-funds is the accrual basis of accounting, the same that is used in the audited financial statements and
CAFR. Through this budget and its adoption by the Board, funds are appropriated to each of the four
sub-funds. Each of the sub-funds presents a budget in the form of revenues, expenses, and an overall
contribution to or draw, from reserves. Central San has adopted the reserve policies noted above and
may as a result, collect more or less revenues than budget-year expenditures, due to contributions to or
draws from the reserves, in compliance with the Reserve Policy. Central San strives to present a
"balanced budget" each year, which we define as a budget in which:
Budgeted revenues and planned draws from the applicable reserve meet or exceed budgeted
expenditures, and where any planned draws from the reserve will leave the reserve at or above the
policy targeted level.
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Debt Management and Continuing Disclosure Policy
In August 2017, the Board adopted Board Policy No. BP 029—Debt Management and Continue
Disclosure, which sets the parameters for the responsible and prudent use of debt to fund a part of
Central San's capital spending in the coming years. In recent years, Central San has primarily used a
pay-as-you-go philosophy but has occasionally used some debt financing for large capital improvements
brought about by regulatory changes or other unforeseen factors. The newly adopted debt policy
provides for the conservative use of debt. The funding allocated towards pipeline replacement in
general, is to be collected through Sewer Service Charge (SSC)rates or taxes, while debt is permitted
for the remaining portion of the capital projects. Currently, Central San is repaying a State of California
Water Reclamation Loan and 2009 Revenue Bonds. As of June 30, 2017, total outstanding debt
associated with infrastructure improvements was $31.7 million. Central San's ten-year financial plan
anticipates a bond offering (subject to Board approval)within the next five years,potentially as early as
FY 2019-20.
Debt restrictions currently include the following:
• Revenue Pledge and Covenant—Central San pledges Property Tax Revenue, along with its ability
to raise SSC rates.
• Debt Service Coverage Ratios (DSCR) of at least 1.Ox(Net Revenue/Total Debt Service) and
1.25x(Adjusted Net Revenue/Total Debt Service) are adhered to.
Central San's DSCR is strong and benefits from our current pay-as-you go philosophy. This favorable
coverage ratio is a factor in Central San's very strong"AAA" (S&P) and"Aal" (Moody's) credit
ratings.
Investment Policy
Central San's investment policy Board Policy No. BP 005 —Statement of Investment Policy, last updated
in September 2017, is based on state law and prudent money management. All investments are in
accordance with this policy and Sections 53646 and 53601 of the California Government Code. Central
San has formal agreements with Contra Costa County, allowing them to act as Central San's banker and
they invest all Central San funds. Securities are held in a custodial account separate from the County.
The investment policy applies to all Central San funds and investment activities.
The investment policy is presented to the Board annually, and its priorities are: safety, liquidity, and
yield. The policy addresses issues such as permitted investments, banks and dealers, maturities,
diversification, risk, delegation of authority,prudence, controls, reporting and performance evaluation.
The GASB 45 Trust and Pension Prefunding Trust Investment Guidelines are also presented to the
Board annually. The investments of these Trusts are longer-term investments,with the GASB 45 Trust
adopting a"moderate" investment strategy, and the Pension Prefunding Trust adopting a"moderately
conservative" investment strategy. With respect to both trusts, U.S. Bank is the Trustee, HighMark
Capital is the Investment Manager, and Public Agency Retirement Services (PARS) is the Trust
Administrator and Consultant.
The IRS Section 115 Pension Prefunding Trust was adopted during FY 2017-18, and initially funded
with $3.4 million. With the adoption of this trust, Central San may make optional payments to the
Pension Prefunding Trust rather than a direct payment to the Contra Costa County Employees'
Retirement Association (CCCERA), giving Central San greater retirement payment flexibility in the
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Financial Planning Policies
future, while still reducing its overall pension liability. In December 2017 the Board allocated $2.0
million of the FY 2016-17 favorable budget variance to the Pension Prefunding Trust. In future years
Central San may draw down the Pension Prefunding Trust to meet its payment obligations to CCCERA
in order to smooth payment obligations and mitigate rate volatility.
Budget Calendar and Process
The budget development process for the upcoming year started midway through the current fiscal year,
with the updated financial plan, then the discussion of the financial plan with the Board in a workshop
held in March. Internal budget development commences during February, and extensive internal review
of the proposed budget takes place during March. Several cycles ("passes") of budget development take
place. Initial budget proposals are input in Pass 1, after which the General Manager, Director of Finance
and Administration, and each division manager meet to review results. Required changes are input in
Pass 2, and another review session is held. Final changes are input in the Final Pass. Development of
the budget is finalized during April and May. A draft of the budget is provided to the Board in May. The
Operations and Maintenance sections are reviewed by the Finance Committee, and the capital budget is
reviewed by the Engineering & Operations Committee prior to Board adoption. The final budget is
adopted by the Board in June.
The budget process is also related to two other key planning processes: strategic planning, which covers
a two-year window; and rate setting, which covers a ten-year window. FY 2018-19 is the first year of a
new two-year strategic planning cycle. As a result, the strategic goals, strategies, initiatives, and metrics
have been updated concurrent with the development of this proposed budget. The budget is developed
to ensure that resources are available to achieve the goals set forth. Staff works with each other and the
Board to ensure this alignment. The rate adjustment for FY 2018-19 was approved in a two-year rate
plan adopted by the Board in 2017 for FY 2017-18 and FY 2018-19. The Board committed at that time
to review the second year(FY 2018-19) rate during the spring of 2018. The Board did so in April 2018
and elected to retain the 7%rate adjustment.
A conceptual diagram summarizing the budget and rate development process is provided below. As
noted above, a rate-setting process is not conducted every year; for FY 2018-19, rates were established
as part of a two-year rate adopted during FY 2016-17.
JULYIOCTOBER
• Identify Issues
AO*
• Prior Year SSC Placed on Tax Roll
•Calculate Administrative Overhead
MARCHIJUNE NOVEMBER/JANUARY
•Conduct Board of Directors Meetings, • Refine Issues•Conduct Capital Budget Workshop
Workshops and Board Committee Meetings . Develop Financial Projections
•Capacity&Developer Fee Outreach • Update Capacity&Developer Related Fees,
•Conduct Public Hearings Rates and Charges
•Adopt Final Budget and Resolution • Update Recycled Water Rates
JANUARY/MARCH
•Conduct Financial Planning Workshop
•Receive Board of Directors'Direction
•Prepare Prop 218 Plan
•Prop 218 Outreach
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A calendar of key events during the current planning cycle for FY 2018-19 is provided below. Three
critical business areas were revisited and updated simultaneously - the update of the two-year strategic
plan, the development of the annual budget, and adjustment to Sewer Service Charge rates.
Key Budget Events
nancial Planning and
� . Strategic Plain Budget
Board approves revised
January 2018 Mission, Vision, Values and
Goals
January-March Staff develops strategies,
2018 initiatives and performance
metrics
Departments/Divisions
February 2018 develop and submit
Operating Budget
proposals
Board Rate
Workshop (review of
Strategic Plan presented to General Manager reviews Financial Plan
March 2018 the Administrative Operating Budget with including updates to
Committee Departments/Divisions the Ten-Year CIP
and Fiscal Year
CIB)
Draft Operating Budget
finalized with Public Hearing on
Board receives Strategic Departments/Divisions adoption of
April 2018 Plan proposed rate
Draft Ten-Year CIP
finalized by Engineering increase
Department
Draft Operating Budget
presented to the Finance
Committee and the Board
May 2018 Draft Ten -Year CIP
Budget presented to the
Engineering & Operations
Committee and the Board
Public Hearing on
Public Hearing on adoption adoption of Capacity
June 2018 Fees and
of Final Budget Environmental and
Development Fees
Once the budget is adopted, the General Manager has the authority to spend within the overall budget.
However, there are budgetary levels of control. The General Manager has the authority to spend up to
the overall level of the Operations and Maintenance budget. Spending is monitored monthly by the
Board; variances of more than 10% on individual budget line item categories are highlighted and subject
to discussion by the Finance Committee. Certain expenditures over $100,000 require Board approval.
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For the Capital Improvement Program, budgets are set by project, on an annual basis. The General
Manager has the authority to reallocate funds up to $500,000 between projects. Reallocations above that
amount require approval by the Board. Additionally, the General Manager has the authority to spend up
to the budgeted amounts for Debt Service. The General Manager may also spend Self-Insurance
Reserve funds to pay claims and claims expenses within the self-insured retention ($500,000) during the
fiscal year. Payments are governed by the limits set in the General Manager Delegation of Authority.
Should it become necessary to spend more than the overall O&M budget amount, formal action by the
Board would be required to adopt an amended budget. With respect to the Capital Budget, the General
Manager has the authority to transfer up to $500,000 of the budget from one approved project to
another. The Capital Budget also includes a $1.5 million contingency, which is subject to the same
General Manager transfer limits. Transfers above that amount, or the creation of a new, unbudgeted
capital project,would require approval by the Board.
Monthly financial statements are issued internally and to the Board. Monthly and annual variance
explanations are presented to the Board. The Board also reviews annual variance explanations and
determines how available funds from favorable variances are used. For FY 2016-17, variances of$8.8
million from favorable revenue and expenses were applied to two uses, after ensuring that reserve
balances were at or above the levels required in the reserve policy. In FY 2017-18, an additional $2.0
million was contributed to the Pension Prefunding Trust to reduce outstanding pension-related liabilities,
and $6.8 million was applied to the Sewer Construction Reserve to fund capital expenditures which
reduce the need for borrowing for such expenditures in FY 2019-20.
Current Financial Plan
Central San has a multi-year financial plan that projects anticipated spending, debt issuances, customer
data, tax collections, and resulting rate increases. Factors considered in the long-range forecast include
the impact of state legislation and mandates, regulatory compliance, GASB requirements, negotiated or
forecasted salary increases and employee benefit changes (including anticipated changes in health care
and retirement costs), energy costs, development in the service area, and infrastructure renewal and
replacement needs.
The financial plan undergoes substantial development and review by staff, and various scenarios are
presented to the Board in the context of discussions about the need for rate adjustments and potential
bond issuances. The financial plan covers a period of twenty years, although assumptions for the first
ten years of the plan carry a higher degree of confidence than for the outer years in the plan.
The financial plan reflects the proposed Ten-Year Capital Improvement Plan(CIP) spending levels
identified in the Comprehensive Wastewater Master Plan(CWMP), as updated during a review of the
spending plan conducted in early 2018. The CIP spending levels have been revised downward from the
initial CWMP which projected $873 million of spending over the ten-year period commencing in FY
2017-18, to $806 million over the ten-year period commencing in FY 2018-19. This reflects a detailed
assessment of Central San's latest needs and capacity to ramp up CIP spending from the current levels.
The financial plan also funds the initiatives addressed in the updated Strategic Plan. Accordingly,
Central San's various planning documents are integrated and consistent. This budget document reflects
the detailed and refined estimate of the costs included in the multi-year financial plan. Once developed,
the proposed budget is input as a baseline in the financial plan, and future year's costs may be updated
accordingly. Many costs in the financial plan are projected based on inflation and other cost-growth
factors of the latest available budget year. Known or anticipated cost savings or increases are also
provided for in the Financial Plan. A key cost change anticipated for FY 2019-20 relates to an expected
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Financial Planning Policies
transition to Ca1PERS healthcare,providing savings estimated at $5.6 million annually. Savings may
accrue to Central San during FY 2018-19, depending on the implementation date of the transition.
Central San has conservatively assumed $306,000 of explicit savings from this transition during FY
2018-19. In addition, Central San has not increased the budgeted costs to pay for the current health care
plans,which are still in place. While such cost adjustments are customary and will likely occur, the
assumption is that increased costs in the first part of the year will be offset by reduced costs after the
healthcare plan transition to Ca1PERS, or by holding the line on spending on labor, including keeping
certain positions vacant if necessary.
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Financial Summary
Financial Summary
The FY 2018-19 budget provides the resources necessary to advance the Strategic Plan and meet the
challenges Central San faces as it strives to increase service quality and minimize cost. At the same
time, the budget allows Central San to accomplish its mission in the most cost-effective and financially
sustainable manner to ensure the best value to its customers.
Central San's FY 2018-19 total budget is $139.6 million, representing an increase of$2.3 million, or
1.7%,compared to the FY 2017-18 budget of$137.2 million. As shown in Table 1, the driver for the
increase in the total budget is a 5.9% increase in sewer construction investment from $42.8 million in
FY 2017-18 to $45.3 million in FY 2018-19. The FY 2018-19 O&M Budget is $89.7 million,which is
unchanged from the current FY 2017-18 Budget of$89.7 million. Salaries and wages increased by
2.2%, which includes an assumed cost-of-living adjustment offset by an increase in the vacancy factor
from 3 to 4%. This is also offset, in part, by reductions in benefit/unfunded liability costs, so total labor-
related costs decrease by$0.2 million. The reduction in salary and benefit costs is offset by a$0.2
million increase in all other costs. Chemicals and utilities decreased by $0.5 million, while costs for
repairs and maintenance, outside services, and materials, supplies and other miscellaneous costs
increased by $0.7 million. The Self-Insurance Fund is set at $924,500 for the costs of premiums and
estimated losses based on historical trends and represents a slight reduction from the $936,500 funding
level of the current year.
Table 1 - FY 2018-19 Total Budget
FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 • ' •:'
Budget Actual Budget Budget
Operations and Maintenance $ 89,810,918 $ 85,489,712 $ 89,713,587 $ 89,720,456 $ 6,869 0.00/0
Sewer Construction $ 36,808,756 $ 36,696,049 $ 42,774,000 $ 45,319,000 $ 2,545,000 5.9%
Debt Service $ 3,790,807 $ 3,791,155 $ 3,819,099 $ 3,611,038 $ (208,061) -5.4%
Self-Insurance $ 948,000 $ 697,793 $ 936,500 $ 924,500 $ (12,000) -1.3%
Total Budgetl $ 131,358,481 $ 126,674,709 $ 137,243,186 $ 139,574,994 $ 2,331,808 1.7%
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Financial Summary
Sources of Funds
The sources of funds (revenues) for FY 2018-19, are shown in Figure 1. A comparison of the major
revenue sources for FY 2018-19, the current year and prior years are shown in Figure 2.
Figure 1 - Where the Money Comes From
FY 2018-19 Total Budgeted Funding sources of: $ 147,386,287
OtherSources, Household Hazardous
$6,358,696,4% Waste, $929,000,1%
Recycl e d Water,
Capacity Fees,
$420,000,0%
$5,900,000,4%
Tax Re venue,
$16,828,591, 11%
Cityof Concord, �SewerServiceCharge,
$21,950,000, 15% $95,000,000, 65%
FY 2018-19 Total Funding Sources
Figure 2 - Where the Money Comes From
FY 2016-17 FY 2017-18 FY 2018-19
$131,343,455 $138,532,599 $147,386,287
Sources of Funds
5100,000,0x0
S90,0xx,000 —
S80,000,0ox
570,000,000
S60,000,000 —
S50,000,000
540,000,000
$30,000,000 -
S20,000,000 ,I, s o n
510,000,000
Swer Service Charge Co of Concord Property Tax Revenue Capac ty Fees All Other Sources
■FY 2016.17 Budget 0 FY 2017-18 Budget a FY 2018-19 Budget
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Financial Summary
The Sewer Service Charge (SSC) is the largest source of revenue at$95 million, followed by the City of
Concord at $22 million, ad valorem property tax at $16.8 million, and Sewer Connection Fees (Capacity
Fees and Pumped Zone Fees) at $5.9 million. A brief description of Central San's revenue sources and
how they are forecasted follows:
• Sewer Service Charge (SSC) - This fee is charged annually to residential and non-residential
customers. For residential customers, separate rates are charged to single family and multi-
family residences. Non-residential customers pay a proportionate charge based on their water
use, size of facility, and the strength of the wastewater. SSC is estimated based on prior year
collections and estimates of growth in the number of residential customers. For commercial and
industrial customers SSC revenues are forecasted based on water consumption and strength of
each use category.
• City of Concord and Clayton - Central San revenues from the City of Concord and Clayton are
calculated and billed in accordance with the terms of a contract agreement. The City of Concord
is responsible for a share of Central San's treatment plant and associated costs, and their share is
proportional to the overall flows to the treatment plant. The amount of revenue is forecasted
annually for budgeting purposes by multiplying the City of Concord's estimated flow percentage
by the budgeted treatment plant and associated costs. The amount due is invoiced by
Accounting in August for the prior fiscal year.
• Tax Revenue - Central San receives a share of Contra Costa County's collected ad valorem
property taxes on properties within the service area. These taxes are used to pay debt service
requirements, and the remaining funds are allocated to the CIP.
• Capacity Fees—These are collected from new construction and expansion of non-residential
and residential customers. The fee is calculated as an equity buy-in and assessed based on a per-
residential-unit-equivalent basis, square footage, and type of usage for commercial facilities.
The amounts due are collected before plans are approved. The budgeted amount is estimated by
the Planning&Development Services Division based on trend analysis and anticipated
construction activity for the upcoming year.
• Household Hazardous Waste Reimbursement- Central San provides a facility where local
residents and businesses within the service area may dispose of specified hazardous wastes.
Additionally, residents from specified cities (Concord, Clayton, San Ramon, and parts of
Martinez served by the Mt. View Sanitary District) also have the right to use the facility, and
these cities pay a contractually agreed amount for this service. The amounts due are invoiced by
Accounting in August for the prior fiscal year. The budgeted amounts are based on projected
total costs of the facility, to be shared pro-rata by all users within the service area.
• Recycled Water—This represents revenue from the sale of recycled water to customers in
Central San's service area who have recycled water meters. The amounts due are invoiced by
Accounting bi-monthly based on monthly meter readings. The Planning& Development
Services Division forecasts the revenue from recycled water.
• Other Sources include the following:
o Permit and inspection fees - Fees for sewer permits, inspections, and related activities,
including environmental compliance fees,plan review, and other than inspections of
mainlines. The amounts are forecasted by the Development Services Supervisor based
on anticipated construction activity for the upcoming year.
o Lease rental income -Rental income from buffer properties (buildings and undeveloped
land) owned by Central San and rented to third parties through multi-year agreements.
Leases are reviewed by Accounting and Right-of-Way to identify any changes to multi-
year lease rates. Budgeted lease revenue is based on the terms of those leases.
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Financial Summary
o Stormwater/Pollution prevention -Fees collected from the County and certain cities for
performing storm water inspections as required by the County's National Pollutant
Discharge Elimination System permit. These services are provided by Central San's
Environmental Compliance group under contract with the Contra Costa Clean Water
Program. Amounts are invoiced by Accounting based on the number of inspections
completed. The budgeted amount is based on a targeted number of inspections to be
done during the fiscal year.
o Interest income-Budgeted interest income is based on forecasted cash levels times
estimated interest rates over the course of the fiscal year.
o Developer fees - Charges for plan review and inspection of mainline extension projects
by developers and other property owners. The amounts are collected by the Permit
Counter and are budgeted based on estimates by the Planning & Development Services
Division based on trend analysis and anticipated construction activity for the upcoming
fiscal year.
o Pumped Zone fees—For new developments in areas where pumps are required to move
wastewater to the Central San treatment plant pay an additional capacity fee to cover
pumping infrastructure costs. These fees are separately shown as Pumped Zone fees and
are budgeted by multiplying the incremental pumped zone fee times the number of
development units anticipated to be subject to such fees.
o Other - Includes annexation fees, other service charges, and miscellaneous fee revenue.
Amounts are collected by various departments depending on the source of revenue. For
the Self-Insurance Fund, other revenue includes an allocation from the O&M fund in an
amount necessary to replenish the Self-Insurance Fund to the targeted level after
projected expenses in the budget year.
Table 2 below shows the overall funding sources of Central San, and how those funding sources are
applied to each sub-fund.
Table 2 - Revenue Matrix
Total Fund 01 Fund 02 Fund 03 Fund 04
■I °� O&M Capital Self Insurance Debt Service
Sewer Service Charge $95,000,000 67,073,732 27,926,268
City of Concord 21,950,000 14,800,000 7,150,000
Tax Revenue 16,828,591 13,300,000 3,528,591
Capacity Fees 5,900,000 5,900,000
HIM Reimbursement 929,000 929,000
Recycled Water 420,000 420,000
Other Revenue Sources including
Permit&Inspection Fees 1,783,000 1,783,000
Lease Rental Income 627,000 627,000
Stormwater/Pollution Prevention 360,000 360,000
Interest Income 1,368,197 600,000 570,000 115,750 82,447
Developer Fees 443,000 443,000
Pumped Zone Fees 600,000 600,000
Other 1,177,500 333,000 - 844,500 -
Total Other Revenue Sources 6,358,696 3,703,000 1,613,000 960,250 82,447
Total 147.386,287 86.925.732 55.889.268 960.250 3 611.038
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Financial Summary
Sewer Service Charge (SSC)
Table 3 indicates the total collected SSC and how such funds are allocated to the O&M and Capital
budgets. The allocation of the SSC to Capital increases significantly from 15.7% in FY 2017-18 to
29.4% in FY 2018-19. All of the revenue generated by the FY 2018-19 SSC rate adjustment is being
directed to the Capital Program and will be used to fund capital spending in FY 2018-19 and the
subsequent year. A higher proportion of the available SSC can be directed to Capital given that the
O&M budget is being held flat, while the SSC is increasing due to the July 1, 2018 scheduled rate
increase. Table 4 shows the SSC for FY 2018-19 compared to the FY 2017-18 rates. These rates were
approved by the Board in the spring of 2017 through a two-year rate ordinance which provided for a
check-in to review Central San's financial status prior to the implementation of the FY 2018-19 rate
adjustment. A public hearing on the rates was held on April 26, 2018 after a Board workshop on Central
San's financial status and outlook was held on March 8, 2018. No change to the level of the previously
adopted 7%rate adjustment was approved.
Table 3 - Allocation of Sewer Service Charge
BudgetFY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19
To O&M $71,100,000 85.7% $73,138,235 85.8% $75,220,700 1 84.3%r$67,073,732 1 70.6% ($8,146,968)
To Capital $11,820,000 14.3% $12,151,144 14.2% $13,967,300 1 15.7% $27,926,268 1 29.451. $13,958,968
Total Collected $82,920,000 100.0% $85,289,379 100.0% $89,188,000 r 100.0%1 $95,000,000 1 100.0%1 $5,812,000
Table 4 - Approved Annual Sewer Service Charge
Customer Type FY 2015-16 FY 2016-17 FY 2017-18 FY •
Single Family Residence $471 $503 $530 $567
Multi-Family Residence $463 $487 $513 $549
Effective Date 07/01/15 07/01/16 07/01/17 07/01/18
Customer •- 2016-17 1 1 •
Rates per • -• cubic feet unless otherwise indicar��
Standard Commercial Rate for Users Not Listed Below $4.98 $5.25 $5.61
Automotive $5.73 $6.04 $6.46
Bakeries $13.22 $13.93 $14.90
Hotels/Motels $8.64 $9.10 $9.74
Supermarkets $9.34 $9.84 $10.53
Mortuaries $11.47 $12.09 $12.93
Restaurants $9.34 $9.84 $10.53
Minimum Annual Charge $504.00 $530.00 $566.00
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Financial Summary
Customer Type FY 2016-171 1 •
Industrial (rates per unit specified):
Wastewater Flow(per hundred cubic feet) $3.67 $3.87 $4.14
Biochemical Oxygen Demand (per 1,000 pounds) $1,216.00 $1,281.27 $1,370.72
Suspended Solids (per 1,000 pounds) $567.00 $597.44 $639.14
Fixed $87.23 $91.91 $98.33
Minimum Annual Charge $504.00 $530.00 $566.00
Special Discharge Permits&Contractual Agreements: Determined Determined Determined
Individually Individually Individually
Mixed Use(for parcels with shared water meter; rates per hundred cubic feet):
Rate Group XA: (90-99%Standard Commercial; 1-10% Restaurant) $5.32 $5.61 $6.00
Rate Group XB: (80-89%Standard Commercial; 11-20%Restaurant) $5.77 $6.08 $6.50
Rate Group XC:(70-79%Standard Commercial;21-30%Restaurant) $6.23 $6.56 $7.02
Rate Group XD: (60-69%Standard Commercial; 31-40% $6.67 $7.03 $7.52
Restaurant)
Rate Group XE:(50-59%Standard Commercial;41-50%Restaurant) $7.12 $7.50 $8.03
Rate Group XF: (40-49%Standard Commercial; 51-60%Restaurant) $7.56 $7.97 $8.52
Rate Group XG:(30-39%Standard Commercial;61-70% $8.01 $8.44 $9.03
Restaurant)
Rate Group XH: (20-29%Standard Commercial; 71-80% $8.45 $8.90 $9.53
Restaurant)
Rate Group XI:(10-19%Standard Commercial;81-90%Restaurant) $8.91 $9.39 $10.04
Rate Group XJ: (31-35%Standard Commercial; 65-69%Bakery) $10.69 $11.26 $12.05
Rate Group XK: (21-30%Standard Commercial;70-79%Bakery) $10.32 $10.87 $11.63
Rate Group XL: (16-20%Standard Commercial;80-84%Bakery) $10.92 $11.51 $12.31
Rate Group XM: (11-15%Standard Commercial;85-89%Bakery) $11.26 $11.86 $12.69
Rate Group XN:(5-10%Standard Commercial;90-95%Bakery) $11.54 $12.16 $13.01
Rate Group XO: (10-15%Restaurant;85-90%Bakery) $11.69 $12.32 $13.18
Minimum Annual Charge $504.00 $530.00 $566.00
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Financial Summary
y
Customer
•- 1 • 1 1 •
Institutional(rates per hundred cubic feet unless otherwise noted):
Churches $4.98 $5.25 $5.61
Schools(Daycare, Preschool, University) $4.98 $5.25 $5.61
Schools(Elementary) $6.19 per $6.52 per $6.98 per
student student student
Schools(Intermediate) $12.16 per $12.81 per $13.71 per
student student student
Schools(High School) $12.16 per $12.81 per $13.71 per
student _ student student
Fraternal &Service Organizations $4.98 $5.25 $5.61
Local&State Institutions $4.98 $5.25 $5.61
Other Tax Exempt(Except Federal) $4.98 $5.25 $5.61
Federal Institutions $4.98 $5.25 $5.61
Utilities with Special Tax Status $4.98 $5.25 $5.61
Independent Living Facilities, Rest Homes, &Convalescent $4.98 $5.25 $5.61
Hospitals
Minimum Annual Charge $504.00 $530.00 $566.00
Source: Ordinance No.294,http://centralsan.org/index.cfm?navid=1523
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June 7, 2018 Regular Board Meeting Agenda Packet- Page 164 of 446
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Financial Summary
Uses of Funds
The uses of funds (expenditures and contributions to reserves) for FY 2018-19 is shown in Figure 3.
Two expenditure categories, O&M and Sewer Construction, account for more than 90% of the total
uses. In FY 2018-19, a contribution to reserves comprises 5% of the total use of funds. These funds
will be applied to the Sewer Construction Fund to help offset the anticipated borrowing impact of the
increased capital spending planned for FY 2019-20.
Figure 3 - Where the Money Goes
Contributionto Reserves
Self-Insurance, (seeTable12), $7,811,293,5'�
$924,500. 1%
aebtSerwKe
$3,611,03.8, 2%
Sewer Construction,
$45,319,000, 31%
_Operations a nd
Maintenance,
$.89,720,456, 61%
FY 2015-19 Total Funding Uses
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June 7, 2018 Regular Board Meeting Agenda Packet- Page 165 of 446
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Financial Summary
O&M Budget Overview
The total O&M revenue for FY 2018-19 is projected to be $86.9 million, compared to the FY 2017-18
budget amount of$94.7 million. Revenue decreases by $7.7 million, or 8.2%, due to the following:
• While SSC rates are increasing by 7%, the O&M allocation of the SSC decreases to 70.6% from
84.3% in FY 2017-18, with the amount allocated to Capital Projects increasing from 15.7%to 29.4%.
• The City of Concord is allocated a share proportional to their flow to the treatment plant, and
environmental and regulatory compliance expenses, and is billed for administrative overhead and a
finance charge. City of Concord revenue towards O&M costs is expected to be $14.8 million in FY
2018-19, a 2.6%reduction compared to the $15.2 million in FY 2017-18. This is due to actual
expenses shared by the City of Concord coming in lower than what was budgeted in FY 2016-17 and
FY 2017-18, which lead to a downward adjustment in expected revenue for FY 2018-19.
The total O&M expenses are projected to be $89.7 million in FY 2018-19,unchanged from the $89.7
million in FY 2017-18. Central San has achieved a flat O&M budget that addresses critical needs and
provides funding for key activities. Table 5 and Figure 4 show the FY 2018-19 O&M budget by
expense category.
Table 5 - FY 2018-19 Budgeted O&M Revenues and Expenditures
BudgetBudgetto
FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19
BudgetAccount Description Budget Actual Budget Projected
Revenue:
Sewer Service Charge 71,100,000 73,138,235 75,220,700 75,221,000 67,073,732 (8,146,968) -10.8%
Concord SSC 14,790,000 13,851,253 15,200,000 14,100,000 14,800,000 (400,000) -2.6%
Permit&Inspection Fees 1,430,000 2,042,488 1,724,000 1,806,450 1,783,000 59,000 3.496'
Lease Rental Income 616,200 605,648 612,000 612,900 627,000 15,000 2.5%
HHW Reimbursement 888,000 851,710 853,000 906,000 929,000 76,000 8.9%
Stormwater/Pollution Prevention 310,000 377,140 1 340,000 380,000 360,000 20,000 1 5.9.1/6
Interest Income 1 233,000 77,223 78,000 366,000 1 600,000 522,000 669.2%
Recycled Water 1 100,000 349,763 335,000 377,000 420,000 85,000 25.4916
Other 350,000 501,079 296,000 376,000 333,000 37,000 12.5%
Total Revenue 89,817,200 91,794,539 94,658,700 94,145,350 86,925,732 (7,732,968) -8.2%
Expenditures:
Salaries&Wages 33,158,707 31,794,337 34,797,628 34,003,060 35,571,037 773,409 2.2%
Benefits&Cap O/H Credit 14,163,311 14,178,918 12,655,155 13,257,513 12,655,572 417 0.0%
Salary&Benefits(Active Employees) 47,322,018 45,973,256 47,452,783 47,260,573 48,226,609 773,826 1.6%
Benefits(Retirees) 5,362,300 5,404,628 5,946,000 5,620,900 5,941,200 (4,800) -0.1%
Retirement UAAL/Unfunded Liabilities 11,741,700 10,964,446 11,679,261 11,282,158 10,720,478 (958,783) -8.2%
Additional UAAL Contributions 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 - 0.0%
Total UAAL/Unfunded Liabilities* 14,241,700 13,464,446 14,179,261 13,782,158 13,220,478 (958,783) -6.8%
Total Labor Related Costs 66,926,018 64,842,329 67,578,044 66,663,631 67,388,287 (189,757) -0.3%
Chemicals 1,920,000 1,426,091 1,482,000 1,379,600 1,459,000 (23,000) -1.6%
Utilities 4,315,790 4,680,813 4,639,790 4,266,037 4,142,550 (497,240) -10.7%
Repair&Maintenance 5,222,852 4,662,917 5,299,754 4,982,045 5,414,644 114,890 2.2%
Hauling&Disposal 941,050 999,167 1,023,975 1,047,433 1,126,475 102,500 10.0%
Professional&Legal Fees 630,750 646,602 807,600 657,300 845,300 37,700 4.7%
Outside Services 3,980,175 3,244,611 1 3,452,717 3,069,992 3,510,822 58,105 1.7%
Self Insurance Fund 920,000 920,000 585,000 585,000 779,500 194,500 33.2%
Materials&Supplies 2,100,025420,647p382
422,135p543
2,030,835 2,108,126 48,801 2.4%
Other Expenses 2,854,258 2,356,155 2,945,752 160,370 5.8%
**Total Other O&M 22,884,900 20,374,397 22,332,169 196,626Total Expenditures 89,810,918 87,038,028 89,720,456 6,869Contribution to Reserve 6,282 7,107,322 (2,794,724) (7,739,837)
*FY 2016-17 includes amounts that were reclassified during the annual audit to the Balance Sheet.
**Includes cost for the production and distribution of recycled water.
39
June 7, 2018 Regular Board Meeting Agenda Packet- Page 166 of 446
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Financial Summary
Figure 4 - FY 2018-19 OW Budget by Expense Category
Operations and Maintenance Expen5es FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 Percent
thousands) Actualof Total
A.O&M Salaries&Wages $33,158,707 $31,794,337 $34,797,628 $35,571,437 39.696
B.Medical-Active $6,845,944 $6,264,760 $7,494,479 $6,615,333 7.4%
B.Medical-Retiree $4,915,040 $4,938,618 $5,441,500 $5,417,000 6.0%
B.Other Benefits{
Vacancies f Capitalized Admin Overhead 1,838,462 3,406,594 944,506 1,273,038 1.4%
B.Retirement Normal Cost $5,925,249 $5,373,575 $5,121,070 $5,291,401 5.9%
C.Additional Unfunded Lia bi I ity Contri bution $2,540,400 $2,500,400 $2,544,000 $2,540,440 2.8%
C.Retirement URAL/Unfunded Liabilities $11,741,744 $10,964,446 $11,579,251 $14,724,478 11.995
U.Chemicals&Utilities $6,235,790 $6,106,903 $5,121,790 $5,601,554 6.2%
D.Materia ls&Supplies $2,140,425 $2,408,099 $2,459,325 $2,148,126 2.3%
D.Repair&Maintenance $.5,222,852 $4,662,917 $5,299,754 $5,414,544 5.0%
U.Outside Services $3,980,175 $3,244,611 $3,452,717 $3,510,822 3.9%
D.All Other $5,345,458 $4,624,852 $5,241,957 $5,697,427 6.3%
Total $89,810,915 $55,49,712 $89,713,557 $39,724,456 140.496
D.Outsi deServices
i
3.996
D.Repair&Maintenance_ _D.All Other
6.0% k.h I 6.396
4 I
1 I
D.Materials&Supplied k
1
2.356 k
ti
D.Chemicals&Utilid
6.296
A.O&M Salaries&W ages
39.6%
C.RetirementUAALJ
Unfunded Liabilities-----
11.9%
iabilities11.9%
C.AdditionalUnfunded_
Lia bitty Contribution
2.8%
El.Retirement Norm alG-s
5.9% B.M ed ical-Active
i 7.4%
i B.Medical-Retiree
!
B.Crch er den efi6� 6.0%
Vaca ncie&/Ca pitalized Ad min Overhead,
1.4%
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Financial Summary
Staffing, Salaries, and Benefits
Total salaries and benefits for active employees is projected to be $56.6 million in FY 2018-19,
including both the O&M Fund and the Sewer Construction Fund. Compared to $56.5 million total
salaries and benefits in FY 2017-18, this is a $0.1 million or 0.2% increase, as shown in Table 6a.
Benefits for retirees are projected to be $5.9 million in FY 2018-19, unchanged from$5.9 million for FY
2017-18. Costs of Unfunded Liabilities for Pension and OPEB costs are $13.2 million, down from $14.2
million in FY 2017-18. Total Labor related costs decrease 1.1% from$76.6 million in FY 2017-18 to
$75.7 million in FY 2018-19. The following tables show various levels of detail regarding labor costs.
Table 6 summarizes all labor related costs across two sub-funds. Table 6a provides additional detail by
sub-fund, and Table 7 provides more detail, particularly about benefit costs.
Table 6 - Total Labor Costs Summary
Operations& Sewer
Budget(FY 2018-19) Maintenance Construction Total
Active Employees
Budgeted FTE Positions(estimated allocation) 266.86 23.14 290.00
Budgeted Salaries&Wages $35,571,037 $3,085,056 $38,656,093
Budgeted Benefits $16,635,295 $1,294,263 $17,929,558
Capitalized Admin Overhead** ($3,979,723) $3,979,723 $0
Benefits After Capitalized Admin Overhead $12,655,572 $5,273,986 $17,929,558
Total Costs Active Employees $48,226,609 $8,359,042 $56,585,651
Retiree Costs and Unfunded Liabilities
Retiree Benefit Costs $5,941,200 $0 $5,941,200
UAAL/Unfunded Liabilities $13,220,478 $0 $13,220,478
Total Retiree Costs and Unfunded Liabilities $19,161,678 $0 $19,161,678
Total Labor Related Costs $67,388,287 $8,359,042 $75,747,329
**Consists of Indirect costs associated with non-productive hours and Admin Overhead.
Table 6a — Salaries, Benefits, Retiree and Unfunded Liabilities Detail
FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 Budget to
Budget Actual Budget Budget Budget Variance
Salaries $35,172,458 $33,192,567 $36,516,669 $38,251,464 $1,734,795
Salary Vacancy ($476,000) $0 ($443,000) ($1,193,000) ($750,000)
Overtime $1,184,636 $1,148,954 $1,201,806 $1,222,429 $20,623
Standby $322,000 $371,085 $375,000 $375,200 $200
Total Salaries $36,203,094 $34,712,606 $37,650,475 $38,656,093 $1,005,618
Current Employee Benefits $20,071,193 $20,096,121 $19,956,075 $18,935,558 ($1,020,517)
Benefit Vacancy ($1,149,000) $0 ($1,149,000) ($1,006,000) $143,000
Total Benefits(Active Employees) $18,922,193 $20,096,121 $18,807,075 $17,929,558 ($877,517)
Total Salaries and Benefits(Active Employees) $55,125,287 $54,808,728 $56,457,550 $56,585,651 $128,101
Capitalized Administrative O/H $0 $0 $0 $0 $0
Total Salaries and Benefits(Active Employees) $54,808,728 $56,457,550 $56,585,651 $128,101
after Capitalized Administrive O/H
"Retiree Benefits $5,946,000 $5,404,628 $5,946,000 $5,941,200 ($4,800)
UAAL/Unfunded Liabilities $14,179,261 $13,464,446 $14,179,261 $13,220,478 ($958,783)
Total Benefits and Liabilities for Past Service $20,125,261 $18,869,074 $20,125,261 $19,161,678 ($963,583)
Total Salaries,Benefits&Liabilities for Past $75,250,548 $73,677,801 $76,582,811 $75,747,329 ($835,482)
Service (Active and Retiree)
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Financial Summary
Operations
FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 Budgetto
Budget Actual Budget Budget Budget Variance
Salaries $32,217,344 $30,305,136 $33,739,967 $35,186,029 $1,446,062
Salary Vacancy ($440,000) $0 ($413,000) ($1,111,000) ($698,000)
Overtime $1,059,363 $1,118,116 $1,095,661 $1,120,808 $25,147
Standby $322,000 $371,085 $375,000 $375,200 $200
Total Salaries $33,158,707 $31,794,337 $34,797,628 $35,571,037 $773,409
Current Employee Benefits $17,776,358 $17,793,673 $17,776,358 $17,641,295 ($135,063)
Benefit Vacancy ($1,149,000) $0 ($1,149,000) ($1,006,000) $143,000
Total Benefits(Active Employees) $16,627,358 $17,793,673 $16,627,358 $16,635,295 $7,937
Total Salaries and Benefits(Active Employees) $49,786,065 $49,588,010 $51,424,986 $52,206,332 $781,346
Capitalized Administrative O/H ($3,972,203) ($3,614,755) ($3,972,203) ($3,979,723) ($7,520)
Total Salaries and Benefits(Active Employees) $45,813,862 $45,973,256 $47,452,783 $48,226,609 $773,826
after Capitalized Administrive O/H
Retiree Benefits $ 5,946,000 $ 5,404,628 $ 5,946,000 $ 5,941,200 ($4,800)
UAAL/Unfunded Liabilities $ 14,179,261 $ 13,464,446 $ 14,179,261 $ 13,220,478 ($958,783)
Total Benefits and Liabilities for Past Service $20,125,261 $18,869,074 $20,125,261 $19,161,678 ($963,583)
Total Salaries,Benefits&Liabilities for Past $65,939,123 $64,842,329 $67,578,044 $67,388,287 ($189,757)
Service (Active and Retiree)
Sewer Construction
FY 2016-17 FY 2016-17 FY 2017-18 FY 2018-19 Budget to
Budget Actual Budget Budget Budget Variance
Salaries $2,955,114 $2,887,431 $2,776,702 $3,065,435 $288,733
Salary Vacancy ($36,000) $0 ($30,000) ($82,000) ($52,000)
Overtime $125,273 $30,838 $106,145 $101,621 ($4,524)
Standby $0 $0 $0 $0 $0
Total Salaries $3,044,387 $2,918,269 $2,852,847 $3,085,056 $232,209
Current Employee Benefits $2,294,835 $2,302,448 $2,179,717 $1,294,263 ($885,454)
Benefit Vacancy $0 $0 $0 $0 $0
Total Benefits(Active Employees) $2,294,835 $2,302,448 $2,179,717 $1,294,263 ($885,454)
Total Salaries and Benefits(Active Employees) $5,339,222 $5,220,717 $5,032,564 $4,379,319 ($653,245)
Capitalized Administrative O/H $3,972,203 $3,614,755 $3,972,203 $3,979,723 $7,520
Total Salaries and Benefits(Active Employees) $8,835,472 $9,004,767 $8,359,042 ($645,725)
after Capitalized Administrive O/H
Retiree Benefits $0 $0 $0 $0 $0
UAAL/Unfunded Liabilities $0 $0 $0 $0 $0
*otaBe,nefits and Liabilities for Past Service $0 $0 $0 $0 $0
ries,Benefits&Liabilities for Past $9,311,425 $8,835,472 $9,004,767 $8,359,042 ($645,725)
Service (Active and Retiree)
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Financial Summary
Table 7 shows the allocation of Central San salaries and benefits to the O&M Fund and the Sewer
Construction Fund.
Table 7 - Salaries, Benefits (Detailed), Retiree and Unfunded Liabilities
BudgetBudgetto
FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19
BudgetAccount Description .• Budget
O&M Salaries&Benefits-Active Employees
O&M Salaries $33,158,707 $31,794,337 $34,797,628 $34,003,060 $35,571,037 $773,409 2.2%
O&M Benefits-Active Employees
O&M Workers'Compensation $402,948 $250,313 $415,320 $418,799 $483,026 $67,706 16.3%
O&M Medical&Health $6,845,900 $6,264,760 $7,094,079 $6,221,507 $6,615,333 ($478,746) -6.7%
O&M Dental $529,909 $523,927 $523,098 $481,780 $531,242 $8,144 1.6%
O&M Retirement-Normal cost $5,925,249 $5,373,575 $5,121,070 $4,998,132 $5,291,401 $170,331 3.3%
O&M Deferred Comp/Medicare $2,264,571 $2,252,429 $2,396,058 $2,275,590 $2,457,201 $61,143 2.6%
O&M Other Benefits $209,627 $84,057 $198,733 $160,248 $230,292 $31,559 15.9%
OPEB Contribution(future $2,528,700 $2,486,372 $1,578,000 $1,903,100 $1,582,800 $4,800 0.3%
contribution only;does not
include retiree healthcare
O&M Accrued Compensated $360,000 $558,241 $450,000 $450,000 $450,000 $0 0.0%
Absence
O&M Benefit Vacancy Factor ($1,159,000) $0 ($1,149,000) $0 ($1,006,000) $143,000 -12.451.
O&M Benefits(Active Employees) $17,907,904 $17,793,673 $16,627,358 $16,909,156 $16,635,295 $7,937 0.0%
O&M Capitalized Administrative ($3,744,593) ($3,614,755) ($3,972,203) ($3,651,643) ($3,979,723) ($7,520) 0.2%
Overhead Credit(indirect costs
associated with non-productive
h;(Active)
d Admin Overhead)
nefits less Cap O/H Credit $14,163,311 $14,178,918 $12,655,155 $13,257,513 $12,655,572 $ 417 0.0%
laries&Benefits $47,322,018 $45,973,256 $47,452,783 $47,260,573 $48,226,609 $773,826 1.6%
Capital Salary and Benefits" $5,566,832 $5,220,717 $5,032,564 $4,630,302 $4,379,319 ($653,245) -13.0%
Portion of Capitalized Overhead
from above $3,744,593 $3,614,755 $3,972,203 $3,651,643 $3,979,723 $7,520 0.2%
Capital Salary,Benefits and
Capitalized Overhead $9,311,425 $8,835,472 $9,004,767 $8,281,945 1 $8,359,042 1 ($645,725) -7.2%
O&M and Capital Salaries and $56,633,443 $54,808,728 $56,457,550 $55,542,518 $56,585,651 $128,101 0.2%
Benefits(Active)
Benefits-Retiree
Retiree Medical $4,916,000 $4,938,618 $5,441,500 $5,165,100 $5,417,000 ($24,500) -0.5%
Retiree Dental $350,200 $350,058 $397,800 $348,700 $405,500 $7,700 1.9%
Retiree Life $96,100 $115,951 $106,700 $107,100 $118,700 $12,000 11.2%
Retiree Benefits $ 5,362,300 $ 5,404,628 $ 5,946,000 $ 5,620,900 $ 5,941,200 (4,800) -0.1%
UAAL/Unfunded Liabilities
UAAL/Unfunded Liabilities $11,741,700 $10,964,446 $11,679,261 $11,282,158 $10,720,478 ($958,783) -8.2%
Additional UAAL Contributions $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $0 0.0%
Total UAAL/Unfunded Liabilities $14,241,700 $13,464,446 $14,179,261 $13,782,158 $13,220,478 $ (958,783) -6.8%
Total O&M Salaries&Benefitgs,
Capital,Retiree Benefits,and
Unfunded Liabilities $76,237,443 $73,677,801 $76,582,811 $74,945,576 $75,747,329 $ (835,482) -1.1%
43
June 7, 2018 Regular Board Meeting Agenda Packet- Page 170 of 446
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Financial Summary
Budgeted Full Time Equivalents
Table 8 shows full time equivalent employee totals for time periods indicated. The Year-End Actual
figures represent actual staffing as of June 30, 2017. In addition to the 290 budgeted positions, the
General Manager has the ability to add five (5) additional "transitional"positions at any given time to
backfill positions vacated due to an extended leave of absence or as necessary to properly address
succession planning. The cost associated with these positions are funded through vacancy savings.
Table 8a shows FY 2018-19 budgeted positions by bargaining unit.
Table 8 - Budgeted Full Time Equivalents
FY 1 Budget Actual Budget E - 2017-18 FY 2018-19
. . -
Regular Employees
(excluding Recycled Water) 729C.0 272.00 290.00 290.00
Limited Duration Employees
Summer Students 30.0 25.00 31.00 31.00
Interns 10.5 12.00 9.50 8.50
Table 8a - Full Time Equivalent Positions by Bargaining Unit and Division
r PE
�& - Administration Engineering . .
Local One 18.0 39.00 108.00 165.00
MS/CG 27.0 49.00 32.00 108.00
Management Unit 5.0 5.00 3.00 13.00
Unrepresented 3.0 0.00 1.00 4.00
Total by Division 53.0 93.0 144.0 290.00
Staffing Changes
During 2015, a staffing and organizational studyl�ll was completed for Central San. The study
recommended that Central San hire a consultant to conduct a classification study, which was completed
in 2017, to ensure that Central San's classification structure was appropriate and employees were
working within their job classifications. The budget includes the cost of implementing the
recommendations of the study, as well as other changes to the classification structure that Central San
has deemed as operationally necessary. The FY 2018-19 budget includes $200,000 in gross wages and
$106,000 for the benefit related costs of implementing these potential changes.
Overall staffing remains at 290 positions, unchanged from the FY 2017-18 budget. Reallocations of
staffing between divisions are summarized below:
- Contracts Analyst (Purchasing)replacing Accountant(Finance)
- Senior Administrative Technician replacing Human Resources Analyst(Human
Resources)
Report is available here:http://centralsan.org/documents/Organization and_Staffing Plan.pdf.
44
June 7, 2018 Regular Board Meeting Agenda Packet- Page 171 of 446
Page 53 of 264
Financial Summary
Two IT Analysts I/II replacing Programmer Analyst and IT Analysts (Information
Technology)
Senior Materials Coordinator replacing Materials Coordinator(Purchasing)
Risk Management Specialist replacing Risk Management Analyst(Risk Management)
Administrative Technician replacing Senior Administrative Technician(Office of
General Manager)
Senior Engineer replacing Assistant Engineer along with Temporary Senior Engineer
(Capital Projects)
Net staffing change: Zero
Variances in the O&M Budget
O&M costs overall are flat from FY 2017-18 to FY 2018-19. Salaries increase $0.8 million,which are
offset by benefit and retirement cost decreases of$1.0 million, while other costs increase $0.2 million.
These changes are discussed below and illustrated in Figure 5.
Figure 5 - O&M Cost Comparison by Year in Thousands
O&M Expenses by Category
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0 11111III ■�__ ■ ■■ IIII ■■■■ loll �� �
$0
N Vl O O i' N .UJ N V V t
taoa+ — -0CL
_+ C
o6 UJ >= J = N N Q
C m O N C
UJ O1 '0 O vn cc
j ate+ C C 0 Q ' , V N G 7
N O v � � Q — E v o60
Q
v ao j v =Y a t
io O U Q
v
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Q =0 a N 6
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-0aj
Y
Q
`° v c i
■FY 2016-17 Budget ■FY 2016-17 Actual ■FY 2017-18 Budget ■FY 2018-19 Budget
The lettered expense categories in the chart correspond to the descriptions below.
A. O&M Salaries & Wages
Central San's budgeted salaries are $35.6 million in FY 2018-19, compared to $34.8 million in
FY 2017-18, representing an increase of$0.8 million, or 2.2%. The primary driver of this is an
assumed salary adjustment effective May 2018 (based on the Bay Area consumer price index
change from February 2017 to February 2018), and step increases for newer employees. These
additional costs are offset by an increase in the vacancy factor and the assumption that vacant
positions will be filled by lower paid employees.
B. Benefits and Capitalized Overhead
Central San benefits for the O&M budget are $18.7 million in FY 2018-19 compared to $18.6
million in FY 2017-18, an increase of$0.1 million or 0.3%. Given the timing of the budget
45
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Financial Summary
process, assumptions were made on program costs pending the availability of actual announced
changes by the providers. These assumed cost changes for budget purposes, and the actual cost
changes subsequently announced by the carriers, are discussed in the bullet points below.
While healthcare plan cost changes have now been provided by Kaiser and Health Net for FY
2018-19 versus the rates for FY 2017-18, these overall healthcare cost changes have generally
not been included in the budget, as Central San anticipates a reduction in healthcare costs to
commence mid to late in FY 2018-19, after a transition to a new health plan provider. This
move is subject to finalized labor agreements and then the commencement of new healthcare
plans through the California Public Employees' Retirement System(CalPERS). When
implemented, this change is estimated to save Central San ratepayers $5.6 million annually on an
ongoing basis. For budget purposes, we assume the same level of spending on healthcare as in
FY 2017-18, less $306,000, recognizing the possibility of some savings in the year to offset
anticipated increases during the first portion of the fiscal year.
The primary benefit rate assumptions include the following:
• Kaiser—The budget assumes a $306,000 reduction. In late April 2018 after the budget
assumption was made, the carrier announced a 4.9%premium decrease compared to the
rates paid in FY 2017-18 (representing a $260,000 reduction). As the majority of
employees receive Kaiser healthcare, these cost savings will help offset the increase in
Heath Net rates (reflected in the following bullet).
• Health Net-No rate change was assumed during the budget process. Subsequently, the
carrier announced a 16%rate increase from the levels charged in FY 2017-18. As
noted above, savings from the Kaiser decrease will help absorb a portion of this
increase. Overall, healthcare costs for the existing Kaiser and Health Net plans will
increase by about $492,000 from the rates paid in FY 2017-18. Savings from other
benefit plans, savings from the transition to the CalPERS plans, or other budget
savings, can help address this now known variance.
• CCCERA—The retirement rate is decreasing 2.9% for legacy employees and 4.9% for
PEPRA employees, offset by higher pensionable wages. This is compared to a 7.6%
decrease and 11.2% decrease for legacy and PEPRA employees, respectively, in FY
2017-18.
• Delta Dental—A 4%rate increase was assumed during the budget process.
Subsequently, the carrier announced that rates are to be held flat.
• Long-Term Disability-A 3%rate increase was assumed during the budget process.
Subsequently, the carrier announced that rates are to be held flat.
• Employee Assistance Program- A 3%rate increase is assumed for budget purposes.
Subsequently, the carrier announced that rates are to be decreased 5.1% from the rates
paid in FY 2017-18.
• Workers' Compensation—The budget assumes an estimated 10.%rate increase.
• Life Insurance -A 3%rate increase is assumed for budget purposes. Subsequently, the
carrier announced that rates are to be held flat.
The Capitalized Administrative Overhead rate, a credit given for capital work to the O&M
budget for non-work hours and overhead, increased from 123% in FY 2017-18 to 124% for FY
2018-19. The Capitalized Administrative Overhead budget is $4 million in FY 2018-19,
unchanged from FY 2017-18.
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Financial Summary
C. Unfunded Liabilities
Central San has agreements with its employees to provide pension and post-employment health
care benefits. The District prefunds the pension/benefits in accordance with actuarial
calculations that make certain economic and demographic assumptions. The goal is to grow
these prefunded amounts into enough assets to cover the liabilities arising from the promised
pensionibenefits. An unfunded liability may occur when those economic/demographic
assumptions are not met, those assumptions are changed, and/or the level of pension/benefits is
adjusted.
The pension unfunded liability expense paid to CCCERA is $11.4 million in FY 2018-19, which,
compared to the budget of$11.7 million in FY 2017-18, is a decrease of$0.3 million or 2.0%.
The budget also includes an additional $2.5 million to be paid towards the unfunded liability in
retirement and/or Other Post-Employment Benefits (OPEB) Trust, as determined by the Board
during the fiscal year. This level of funding continues as in FY 2016-17 and FY 2017-18.
D. All Other OW Expenses
The remaining O&M non-labor expenses total $22.3 million in FY 2018-19, compared to a
budget of$22.1 million in FY 2017-18. This is an increase of$0.2 million or 0.9%. Additional
information is included in the individual division budgets. The areas of most significant changes
include the following:
• Chemicals - This expense was reduced by $23,000,or 1.6% due to lower usage of chemicals in
the pumping stations.
• Utilities - This expense decreased $497,000 or 10.7% due to lower use of electricity from
PG&E due to cogeneration system improvement and the lower cost of pre-purchased natural
gas.
• Repairs &Maintenance - This expense increased$115,000, or 2.2% due to increased
mechanical repair expenses offset by the elimination of bypass pumping expense.
• Hauling& Disposal - This expense increased $103,000, or 10% due to higher household
hazardous waste disposal rates and the new screens at the headworks facilities at the plant.
• Professional& Legal Fees - This expense increased $38,000K, or 4.7% due to legal review of
updates to policies and procedures budgeted in the Office of the Secretary of the District.
• Outside Services - This expense increased by $58,000, or 1.7% due to non-capital security
improvement, increased recruitment expense and increased cost-of-service consultant spending
offset somewhat by a net reduction in outside temporary help.
• Self-Insurance Expense - This expense increased by $195,000, or 33% and funds the
requirements for the payment of premiums and estimated losses based on historical trends.
• Materials & Supplies - This expense increased $49,000, or 2.4% due to small budgetary
increases across many divisions.
• Other Expenses - This expense increased by $160,000, or 5.8% due to Proposition 218 Notice
expenses and the fall 2018 Board election.
• Conferences - This expense is included in the Other Expenses category. District-wide
conferences presented in the FY 2016-17 budget represented out-of-state conferences;
FY 2017-18 and FY 2018-19 also include in-state conferences. Table 9 shows that overall
spending on conferences remains essentially flat from the current year budget to FY 2018-19.
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Financial Summary
Table 9 - Conferences
IFY F i2018-19 Percent
BudgetBudget - Variance
Board Conferences $50,000 $45,000 $45,000 $0 0%
District Wide Conferences,Out-
of State# $66,350 $59,458 $82,500 $23,050 3996
District Wide Conferences, In-
State not specified $170,675 $148,900 ($21,775) -13%
Tota! $116.350 $275,1.25 $276.400 $1,275 0%
*FY 2016-17 included only out-of-state conferences;future years include all conferences.
Operating Departments
Table 10 and Figure 6 provide a summary of the operating budgets by department. Further details on
the operating departments are included in the Operating Departments Section.
Table 10 - O&M Budget by Department
Table 8-Operations and Maintenance Budget by Department
BudgetBudgetto
FY 2016-1-7 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Account Description Budget Actual Budget Projected .•
Administration
Communications Services and $2,124,485 $1,894,969 $1,979,369 $1,906,679 $2,094,427 $115,058 6%
Intergovernmental Relations
Finance $2,507,401 $2,253,392 $2,570,983 $2,254,762 $2,442,604 ($128,379) -5%
Human Resources $12,104,264 $12,045,527 $12,579,787 $12,564,487 $12,609,437 $29,650 0%
Information Technology $3,700,951 $3,528,3911 $3,938,582 $3,704,335 $4,137,334 $198,752 5%
Purchasing and Material Services $1,763,107 $1,577,434 $1,958,932 $1,732,274 $2,051,286 $92,354 5%
Risk Management $2,008,786 $1,668,104 $1,604,720 $1,340,076 $1,823,308 $218,588 10o'
Office of the General Manager/ $3,619,999 $3,749,968 $2,629,493 $2,840,642 $2,579,261 ($50,232) -2%
Office of the Secretary of the
District
Total $27,828,993 $26,717,7861 $27,261,866 $26,343,255 $27,737,657 $475,791 2%
Budgetto
BudgetFY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Account Description .• .• Projected Budget
En ineerin and Techn' al Services De artment
Capital Projects Division $1,199,904 $731,890 $766,422 $423,622 $835,854 $69,432 9%
Environmental and Regulatory $8,243,342 $8,028,974 $8,451,520 $7,990,437 $8,397,399 ($54,121) -1%
Compliance Division
Planning and Development $6,455,894 $6,581,696 $7,816,395 $8,106,320 $7,800,153 ($16,242) 0%
Services Division
Total $15,899,140 $15,342,561 $17,034,337 $16,520,379 $17,033,406 ($931) 0%
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Financial Summary
Budgetto
BudgetFY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19
BudgetAccount Description ••et Projected Budget
Operations
Collection System Operations $14,472,053 $13,760,274 $14,156,213 $13,848,644 $13,960,060 ($196,153) -1%
Plant Maintenance $14,035,700 $13,126,339 $14,138,658 $13,619,948 $14,366,463 $227,805 2%
Plant Operations $14,859,845 $14,700,185 $14,886,976 $14,634,580 $14,131,964 ($755,012) -5%
District Safety Program $913,468 $871,929 $916,895 $843,267 $938,112 $21,217 2%
Recycled Water Program $1,801,719 $970,638 $1,318,642 $1,227,955 $1,552,794 $234,152 18%
Total $46,082,785 $43,429,366 $45,417,384 $44,174,394 $44,949,393 ($467,991) -1%
Total All Departments $89,810,918 $85,489,712 $89,713,587 $87,038,028 $89,720,456 $6,869 01/16
Figure 6 - FY 2018-19 O&M Budget by Function
$35,000,000
$30,000,000 —
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
Engineering and Collection System Plant Operations, Recycled Water
Administration Technical Services Maintenance,
Department Operations Safety Program
■FY2016-17Actual $26,717,786 $15,342,561 $13,760,274 $28,698,453 $970,638
•FY2017-18 Budget $27,261,866 $17,034,337 $14,156,213 $29,942,529 $1,318,642
FY2018-19 Budget $27,737,657 $17,033,406 $13,960,060 $29,436,539 $1,552,794
Historical Variances in O&M Spending
Figure 7 below shows historic O&M budgeted and actual amounts. As noted, there have been variances
averaging 3% (spending was 97% of budget) over the last five completed years. In the development of
the FY 2018-19 budget, attention was paid to reviewing the budget on a line-by-line basis, with the
budgeted amount evidenced by detailed support and a comparison to FY 2017-18 projected spending.
Figure 7 - Historic O&M Budget vs. Actual Spending in Millions (Multi-Year
Trend)
O&M Budget Achievenzent
SloO
590
580
$70
$60
$50
540
$30
$20
SIO
Sa
.,
,�,�����y�o�a4ti
,AX cam~ 4"X 4-k k•,�'L �cA 4k�4A
BUDGET = ACTUAL
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Financial Summary
Capital Improvement Budget (CIB)
Sewer Construction Fund revenues are projected to increase by $16.6 million, from $39.3 million in FY
2017-18 to $55.9 million in FY 2018-19. This increase is to cover an extensive capital improvement
program and will be generated primarily through an increase in Sewer Service Charges of$14.0 million,
resulting from additional revenue available from the 7%rate increase effective July 1, 2018, and an
expected City of Concord reimbursement of$1.2 million due to higher flows and increased cost-based
reimbursement. Budgeted capital expenditures for FY 2018-19 are $45.3 million, a $2.5 million
increase over the FY 2017-18 budget of$42.7 million. The $45.3 million does not include the
anticipated carryforward from FY 2017-18, which will be communicated to the Board after the close of
the current fiscal year. The $2.5 million, or 6%, increase in budgeted spending is a small step toward
the significantly increased capital spending foreseen for the next decade as shown in the Ten-Year
Capital Improvement Plan(CIP)presented later in this document.
Central San will contribute approximately $10.6 million to capital reserves in FY 2018-19 with revenues
exceeding expenditures by that amount. Funding the Sewer Construction Fund(Capital Improvement) -
Working Capital Reserves exceeds the requirement of the aforementioned Board Policy No. BP 017—
Fiscal Reserves. The excess funding is to be applied toward reducing anticipated borrowing in FY 2019-
20.
Table 11 below is a summary of the projected FY 2018-19 Sewer Construction Fund revenues and
expenditures. Further details are included in the Capital Improvement Program Section.
Table 11 - Sewer Construction Fund Revenues and Expenditures
Budget* Budgetto
FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Budget Percent
Budget Actual Budget Projected
Revenue
Capacity Fees $5,060,000 $6,367,013 $5,900,000 $5,700000 $5,900,000 $0 , 0%
Pumped Zone Fees $400,000 $596,564 $513,000 $860,000 $600,000 $87,000 17%
Interest Income 1 $225,000 $588,387 $386,000 $553,000 $570,000 $184,000 48%
Ad Valorem Taxes $11,080,000 $12,577,156 $12,100,000 $12,900,000 $13,300,000 $1,200,000 10%
Sewer Service Charge $11,820,000 $12,151,144 $13,967,300 $13,967,000 $27,926,268 $13,958,968 100%
Reimbursements
C!�f of Concord $4,550,000 $4,476,961 $6,000,000 $6,000,000 $7.150,000 $1,150,000 19%
Recycled Water Sales $300,000 $36,946 $38,500 $0 $0 ($38,500) -100%
Developer Fees&Charges $470400 $519,072 $423,000 $442,500 $443,000 $20,000 5%
Total Revenue $34,905,400 $37,313,243 $39,327,800 $40422,500 $65,889,268 $16,561,468 42%
Expenditures
Collection System Program $17,925,105 ....$20,791,120 $18,492,000 $19,530,000 $19,347,000 $855,000 5%
Treatment Plant Program $1.3,125,000 $12,239,981 $18,045,000 $17,900,000 $16,865,000 $1,x,000 -7%
General improvements
Program $3,808,651 $3,062,994 $4,277,000 $2,640,000 $4,750,000 $473,000 11%
Recycled Water Program $500,000 $601,954 $460000 I $1,675,000 $2,857,000 $2,397,000 521%
Contingeng $1,450000 $0 $1,500000 1 $0 $11500000 $0 0%
Total Expenditures $96,808,756 $36,696,049 $42,774,000 $41,74SAM $45,319,000 $2,545,000 6%
Carryforward 53,700,00
Total Expenditure Authority $46,474,000
Sewer Construction Funds Available
Projected Revenue
Projected Expenditures $45,319,000
Contribution to Reserves $10,570,268
•The FY 2818-19 budget amount does not include any carryforward from past f€scal years;the
Board will be notified of any carryforward amount after the close of the current fiscal year.
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Financial Summary
Impact of CIP on Ongoing O&M Budget
Central San's Capital Budget and the extent to which FY 2018-19 nonrecurring capital investments will
have an effect on the proposed or future year's operating budget are described later in this document. In
general, given the nature and composition of the FY 2018-19 Capital Budget, these effects are minimal.
Future capital projects could have more substantial impacts (e.g., additional personnel costs, additional
maintenance costs, or additional utility costs, or conversely, anticipated savings such as reduced utility
costs or lower maintenance costs) that would be specified further in the year such projects are budgeted.
Reserve Projections
Board Policy No. BP 017 Fiscal Reserves sets targets for each of Central San's reserve funds. Fiscal
reserves provide working capital for O&M activities; funding for long-term capital improvement
requirements; fulfillment of legal, regulatory and contractual obligations; mitigation of risk and liability
exposures; and cash flow emergencies. These reserves are fully funded as of FY 2016-17 but are
adjusted annually based on changes in the targeted balance calculation.
• For the O&M 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, excluding
capital projects that are to be funded with bond proceeds.
• For the Self-Insurance Fund Reserves the Board has set a target of three times the annual
deductible, $1.5 million. In addition, to help mitigate financial impacts and maintain uninterrupted
service in the event of an emergency or catastrophic event, Central San maintains an Emergency Fund
Reserve balance of$5 million in the Self-Insurance Fund.
Table 12 presents a summary of Central San's current reserve balance projections compared to the
Board Policy targets. The reserve levels are projected to be above the policy-required levels at June 30,
2018 and 2019. The FY 2018-19 revenue requirement funds a projected$7.8 million increase in the
reserve balances. While the FY 2019-20 capital budget and funding combination is yet to be finalized,
the current projection anticipates $9.2 million of funding above the targeted level, providing for the
ability to reduce the proportion of the CIB that would otherwise be financed with bonds. The amounts
are subject to change based on actual financial results for the current and next fiscal years.
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Financial Summary
Table 12 - Reserve Projections
Sewer
Construction Self Insurance
O&M Fund Fund(Capital) Fund Totals
Projected Balance as of
June 30,2018 $40,265,845 $29,053,312 $6,516,933 $75,836,090
Projected Balance as of
June 30,2019 537,471,121 $39,623,580 $6,552,683 $83,647,384
Change year over year ($2,794,724) $10,570,268 $35,750 $7,811,294
Refererme: Table 5 Table 11 Self insurance See Figure 3
Table 1
Precentage change year over year -6.9% 36.4% 0.5% 10.3%
Explanation Ending balance at Funds are being
6/30/18 is above set aside during
policy level due FY 2018-19 to be
to O&M savings in used towards
FY 2017-18, funding the
following year's
Capital budget.
Policy Target 5/12 of 50%of 3 times annual
following year's following year's deductible of
O&M Budget non-debt $500,000 plus
funded Capital $5 million
Reserve Polity Target end of
June 30,2018 $37,383,523 S22,6S9,5W $6,500,000 $66,543,023
Projected Balance Minus Reserve
Policy Target at June 30,2018 $2,982,322 $6,393,812 $16,933 $9,293,067
Reserve Policy Target end of
June 30,2039 $37,271,483 $30,379,000 56,500,000 $74,150,483
Projected Balance Minus Reserve
Policy Target at June 30,2019 $199,638 $9,244,580 $52,683 $9,496,901
Reserve calculations subject to final close of financial results for the year and may differ from projection.
Reserve projection may be updated by the time of the presentation of the final budget.
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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 are included in the Debt
Program Section. Figure 8 depicts all existing debt payments for Central San. Future planned debt
issuances would add to this debt profile. The need for new bond funding is anticipated for FY 2019-20.
Figure 8 - Debt Service Payment Schedule
$4,500,000
$4,000,000 ■ Principal
$3,500,000 ■ Interest
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
til ti� ti� ti� titi titi ti� ti� ti� ti� til ti�
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An important financial performance metric is the Debt Service Coverage Ratio. The Board's targeted
coverage ratio is 2.0. As shown in Figure 9, Central San will meet the overall Debt Service Coverage
Ratio of 2.0 as required.
Figure 9 - Historic and Project Debt Service Coverage Ratio
20.00
18.00 - —
16.00
14.00 - Adjusted Net
12.00 Revenue Debt
10.00 Coverage Ratio
8.00 ff
6.00
4.00
2.00 Net Revenue
Debt Service
0.00 Coverage
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Net Revenue:This ratio must be above 1.00 to meet the Debt Rate Covenant(Net Revenue/Total Debt Service).
Adjusted Net Revenue=Net Revenue less Capital Improvement Fees(Connection Fees)and City of Concord Capital
Charges.This ratio must be above 1.25 to meet the Debt Rate Covenant(Adjusted Net Revenue/Total Debt Service).
53
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Financial Summary
Long-Term Spending Trend
Figure 10 shows a long-term trend line of O&M expenditures, while Figure 11 shows a long-term trend
line of capital expenditures.
Figure 10 - Long-Term O&M Spending Trend
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50,000,000
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50,000,000
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Budget Actual
Figure 11 - Infrastructure Investments Over Ten Years: $300,119,500
CIP Actual Expenditures
545.M E
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$40.M £
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535.M
E E E
530.M G r �E
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05-06 41&07 07.418 0&09 0310 1611 11.12 12.13 1.3.11 14-15 1516 1617
Fecal you
RW—Recycled Water/GI—General Improvements/CS—Collection System/TP—Treatment Plant
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Operating Departments
On a day-to-day basis, the following three Operating Departments carry out the mission of Central San
to protect public health and the environment:
• Administration
• Engineering and Technical Services
• Operations
These three operating departments carry out Central San's mission by providing exceptional customer
service in the operation of our wastewater collection, treatment, recycled water, and household
hazardous waste collection facilities. The departments are guided by Central San's Strategic Plan which
provides direction and initiatives to help guide us in achieving our goals and objectives.
The following sections describe the responsibilities of each department and their operating budget needs.
The total operating budget for Fiscal Year 2018-19 is $89.7 million, unchanged as compared to the
$89.7 million budget for Fiscal Year 2017-18.
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Page Intentionally Blank
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Administration Department
`rL:7 r
'kcc�
tiA
S
The Administration Department consists of the Office of the General Manager,
the Office of the Secretary of the District, District Counsel, Human Resources,
and Administrative Services. The primary function of the Administration
Department is to provide services that support the efficient operation of
Central San, including administrative support to the General Manager; financial
management; purchasing and materials management; information technology;
and risk management. The Department is also responsible for advancing Central
San'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:
• Communication Services and Intergovernmental Relations
• Finance
• Human Resources
• Information Technology
• Purchasing and Materials Services
• Risk Management
• Office of the General Manager/Office of the Secretary of the District
June 7, 2018 Regular Board Meeting Agenda Packet- Page 184 of 446
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Administration Department—Communication Services and Intergovernmental Relations
Communication Services and Intergovernmental Relations
OVERVIEW
This Division supports Central San's internal and external communication, government relations,
advocacy, community outreach, media relations, emergency communications,publications, events, and
student educational programs. The Division also oversees a contracted, full-service reprographics
services center and mail service which serves all of Central San.
Fiscal Year 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
' Successful completion of the third Central San Academy, a program which
focuses on educating our customers on the mission of Central San and how it
is fulfilled.
• Hosted a week-long collection drive for the 20th Anniversary of the Household
Hazardous Waste Collection Facility, leading to our highest customer
participation level ever.
• Developed innovative household hazardous waste and educational videos that
televised important and timely Central San programming, operational support,
and pollution prevention messages reaching tens of thousands of viewers.
• Increased the reach of our student pollution prevention educational programs.
These students will play a role in reducing pollution and supporting the
environment for decades to come.
Goal 1 - • Provided educational programming to over 2,200 students in our service area,
Provide Exceptional helping support hands-on science-based learning in local schools.
Customer Service • Focused outreach efforts that showcased completion of major infrastructure
projects that increase service reliability and add value for customers.
• Provided comprehensive and engaging Speakers Bureau presentations to over
1,000 customers.
• Provided tours of Central San's treatment plant and Household Hazardous
Waste Collection Facility to over 250 customers.
• Trained Communication Services Division in crisis communications to prepare
for possible emergencies.
• Honored by the California Association of Public Information Officials for the
2018 Photography Award.
• Received the 2018 First Place California Water Environment Association
statewide award for Photography.
• Selected to showcase an Interactive Knowledge Exchange video at the 2017
Water Environment Federation's annual Technical Exhibition and Conference.
Fiscal Year 2018-19 Key Metrics
Students served by educational programs Greater than 4,000 per year
Participants in Treatment Plant/ Household Hazardous Waste Collection Greater than 500
Facility tours and District presentations participants per year
Participants in citizens academy, Central San Academy Greater than 30
participants per session
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Administration Department—Communication Services and Intergovernmental Relations
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Provide high-quality customer service. Customer Satisfaction
Invest in business process changes and
technologies to effectively increase Customer Satisfaction,
access to District information and Operational
Build External promote customer care, convenience, Optimization
Customer and self-service.
Relationships and Increase customer understanding and Stakeholder
Awareness support for key District initiatives, Understanding and
programs, and services. Support
Goal 1 — Build and maintain relationships with Stakeholder
Provide federal, state, and local elected officials Understanding and
Exceptional and key stakeholder groups. Support
Customer Service Establish opportunities for internal
and Maintain an partnerships and cross-divisional Enterprise Resiliency
Excellent Foster Employee collaborations.
Reputation in the Engagement and
Community Interdepartmental Cultivate employees' understanding of Employee and
Collaboration District operations and their role in the Leadership
agency's success. Development,
Enterprise Resiliency
Continue to participate in industry trade Employee and
organizations and apply for Leadership
Maintain a Strong certifications and awards. Development
Reputation in the
Community Minimize impacts to residents and
businesses during maintenance or Customer Satisfaction
construction work.
Comply with All
Goal 2— Re-examine existing Department and
and State,,
Strive to Meet FederalAdministrative Procedures to ensure
Regulatory Local Regulations compliance with applicable laws and Enterprise Resiliency
Requirements Related to District regulations.
Administration
Goal 3— Re-engineer business processes and
Be a Fiscally complete optimization studies to identify Operational
Responsible and Manage Costs opportunities to reduce costs and align Optimization
Effective with best practices.
Wastewater Utility
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Administration Department-Communication Services and Intergovernmental Relations
EUM Attribute
Goal 4-
Recruit, Develop, Enhance Employee and
and Retain a Relationships with Cultivate a positive work culture. Leadership
Highly Trained Employees and
and Safe Bargaining Units Development
Workforce
Goal 6- Encourage the
Embrace Review and Testing
Technology, of Technology to Continue developing and investing in Operational
Innovation, and Optimize and cost-effective innovation, technology, Optimization
Environmental Modernize and applied research and development.
Sustainability Business
Operations
Budget Overview by Expense Category
A�count F?:�6194T W201647 IFY 2017-19 _FY200-118 IFY 2018-19 Budget to Percent Budget to Percent
Description Budget Actual Budget Projected Budget Projected Variance Budget
Variance Variance
Salaries& $664,176 $666:559 $676,862 $635,300 $732,452 $97,152 15% $55,590 8%
Wages
Employee 5513,844 $518,129 $471,302 $442,264 $216,536 ($225,728) -551% ($254,766) -54%
Benefits
Unfunded 50 $0 $0 $4 $226,934 $226,934 100% $226,934 14446
Liabili ies'
Repairs& $1,000 $0 51,000 $1,000 $1,000 s0 0% s0'- 0%
Maintenance
Professional& 52,604 $6,052 1 $2,600 $2,800 $3,500 S900 35% $9W 35%
Legal Services
Outside $409,000 $344,127 S399,000 $390,200 $391,000 S800 0% ($8,000) -2%
Services
Materials& $61,675 $52,657 561,675 $61,675 561,675 50 0% s0 0%
Supplies_
Other $472,230 $307,445 $366,930 $373,640 $461,330 587.690 23% $94,400 26%
Expenses
Total $2,124,485 $1,894,969 $15979,369 $1,906,679 $2,094,427 $187,748 1 10% $115,_058 6%
*Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
t
• .. . . t2018-19
YE Actual
Communication Services and 1.00 1.00 1.00
Intergovernmental Relations Manager
Community Affairs Representative 2.00 2.00 3.00
Graphics Technician 1.00 1.00 1.00
Media Production Technician 1.00 1.00 1.00
Public Information and Production 1.00 1.00 0.00
Assistant
Total 6.00 6.00 6.00
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Administration Department—Communication Services and Intergovernmental Relations
1
Graphic Design Summer Student 1.00 1.00 1.00
Intern 0.00 0.00 1.00
Total 1.00 1.00 2.00
Significant Budget Modifications
The Communication Services and Intergovernmental Relations Division Operating Budget for FY 2018-
19 is $2.1 million, a $0.1 million or 6% increase over the $2.0 million budget in FY 2017-18. Salaries
&Wages include the agency-wide cost-of-living adjustment, funding for an intern, and step increases
for recently hired staff. The other primary cost change is in Other Expenses, for the required
Proposition 218 Notice to customers in 2019, which is typically provided every two or more years.
The Operating Budget for FY 2018-19 will address the challenges of educating customers regarding
required rate increases that will fund a long-term capital plan to replace aging infrastructure on the
treatment plant and throughout our collection system. This will be accomplished through a multi-
pronged outreach campaign involving publications, media relations, a simplified Proposition 218 Notice,
engaging public service announcements, social media posts, customer-focused construction
communications, and through local government relations.
Communication Services and Intergovernmental Relations also takes the lead role in conveying to
customers and other government agencies how Central San responds to challenges facing the
organization. This includes federal, state, and local advocacy, maintaining customer awareness of
Central San's services, and promoting customer behavioral changes to reduce water pollution and
impacts on Central San's infrastructure.
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Administration Department—Finance
Finance
OVERVIEW
This Division is responsible for maintaining internal controls over financial reporting of all Central San
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, pension, and
capital assets. The Division is also responsible for budget document preparation and coordinates the
process with all other Departments at Central San. Monthly financial statements are prepared, reviewed,
and analyzed by the Division and submitted to the Board of Directors for their review. Central San 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 which is
submitted to the Board of Directors and the Government Finance Officers Association.
Fiscal Year 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
• Maintained a AAA credit rating with Standard & Poor's.
Maintained a ratio of net operating revenue over debt service of at least
2:1.
• Maintained service affordability by keeping the sewer service charge below
the median of other Bay Area agencies.
• Established a combination trust for Pension and Other Post-Employment
Benefits in FY 2017-18.
• Funded a new IRS Section 115 Pension Trust with $5.4 million toward
unfunded pension liabilities.
• Fully funded the Other Post-Employment Benefits actuarially determined
Goal 3— contribution and paid an additional $2.5 million toward the unfunded
Be a Fiscally Sound and liability.
Effective Water Sector Utility Received an unmodified (clean) audit opinion on the financial statements.
17th year of receiving the Government Finance Officers Association award
for financial reporting excellence.
• Adopted updated Investment Policy.
. Implemented Board approved Debt Management Policy in accordance with
State Bill 1029 and appointed financial advisors.
• Updated the Fiscal Reserve Policy and established a new investment
account at Contra Costa County for improved tracking and segregation of
funds.
• Implemented an internal audit function and issued three internal audit
reports.
• Streamlined signature authority matrix/limits.
• Produced the FY 2017-18 and FY 2018-19 budgets in-house after using
Goal 6— graphic design consultant for the FY 2016-17 budget.
Embrace Technology, • Mapped workflows in preparation for implementation of new Enterprise
Innovation, and Resource Planning system.
Environmental Sustainability . Used the Mentorship Program project to streamline the Capital
Improvement Program budget information into the financial system.
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Administration Department—Finance
Fiscal Year 2018-19 Key Metrics
Metric
Sewer Service Charge less than average of
Bay Area agencies
Service affordability maintained
Sewer Service Charge plus Ad Valorem tax
less than average of Bay Area agencies
Standard & Poor's and Moody's Credit Ratings AAA/Aa1
Debt service coverage ratio Greater than 2.0 times
Actual reserves as a percentage of target 100%
Reported material weaknesses or significant deficiencies in Zero
internal controls as part of annual financial audit
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Goal Strategy Initiative -a- I EUM Attribute—i
Establish opportunities for internal
Goal 1 — partnerships and cross-divisional Enterprise Resiliency
Foster Employee collaborations.
Provide Engagement and
Exceptional Interdepartmental Employee and
Customer Service Collaboration Cultivate employees' understanding of Leadership
and Maintain an District operations and their role in the Development,
Excellent agency's success. Enterprise Resiliency
Reputation in the Maintain a Strong Continue to participate in industry trade Employee and
Community Reputation in the organizations and apply for Leadership
Community certifications and awards. Development
Goal 2— Comply with All Re-examine existing Department and
Federal, State, and
Strive to Meet Administrative Procedures to ensure
Regulatory Local Regulations compliance with applicable laws and Enterprise Resiliency
Requirements Related to District regulations.
Administration
Ensure rate structure and fees are
consistent with cost of service Financial Viability
principles.
Goal 3— Present alternative financial plans to the
Be a Fiscally Conduct Long- Board in FY 2018-19 for necessary rate
Responsible and Range Financial adjustments for FY 2019-20 onward, Financial Viability
Effective Planning including considering the potential
Wastewater Utility issuance of debt to fund CIP in
conjunction with overall financial plan.
Develop alternatives for new revenues
and funding sources (e.g., interagency Financial Viability
agreements, services, recycled water).
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Administration Department-Finance
. . Strategy Initiative EUM Attribut4
Effectively manage the cost of
employee benefits. Financial Viability
Goal 3- Carry out targeted audits of critical/high
Be a Fiscally risk functions. Enterprise Resiliency
Responsible and Manage Costs
Effective Re-engineer business processes and
Wastewater Utility complete optimization studies to identify Operational
opportunities to reduce costs and align Optimization
with best practices.
Goal 4-
Recruit, Develop, Enhance Employee and
and Retain a Relationship with Cultivate a positive work culture. Leadership
Highly Trained Employees and
and Safe Bargaining Units Development
Workforce
Goal 6- Encourage the
Embrace Review and Testing Continue developing and investing in
Technology, of Technology to Operational
Innovation, and Optimize and cost-effective innovation, technology, Optimization
Environmental Modernize Business and applied research and development.
Sustainability Operations
Budget Overview by Expense Category
Account FY 2016-17 FY 2016-17 FY i17-18 FY 2017-18 FY 2018-19 Budget to Percent Budget
Descnption Budget Actual Budget Projected Budget Projected variance Budget variance
Vadance Variance
Salaries& 51,155,209 $1,024,170 $1,222,311 $1,085,800 $1,211,950 $126,150 12% [$10,361] -1%
Wages
Employee S977.212 $858.944 $933,092 5877.957 5461.426 ($416,531) -47% ($471.666) •51%
Benefits
Unfunded SO SO s0 50 5343,153 3343,153 10D% $343,153 100%
Liabilities.
Repairs& $1,000 $0 $1,000 $500 $1,000 $50D 1DD% $0 0%
Maintenance
Professional& $113,750 $104,244 $225,750 $125,750 $243,000 $117,250 93%,$17,250 8%
Legal Services
Outside $223,500 $243,470 5145,900 $137,900 $148,800 510,900 896 $2,900 2%
Services
Materials& $9,800 $10,743 59,800 $9,800 510,000 $200 2% $200 2%
Supplies
Other $26,930 $11,822 $33,130 $17,055 $23,275 $6,220 36% ($9,855) -30%
Expenses I
Total $2,507,401 52.253.392 $2,570,983 $2,254,762 $2,442,604 $187,842 8% ($128,379}, -6%
*Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
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Administration Department—Finance
Personnel Requirements
: .rTn rr.IL . .
Accountant JL 2.00 3.00 2.00
Accounting Technician III 3.00 3.00 3.00
Finance Administrator 2.00 2.00 2.00
Finance Manager 1.00 1.00 1.00
Payroll Analyst 1 0 1.00 0.00
Total 9.00 10.00 8.00
Significant Budget Modifications
The Finance Division Operating Budget for FY 2018-19 is $2.5 million, a$0.1 million or 5% decrease
over the $2.6 million budget in FY 2017-18. Salaries & Wages include the agency-wide cost of living
adjustment, offset by the transfer of the Payroll Analyst to the Human Resources Division during FY
2017-18 and one Accountant vacancy repurposed to the Purchasing Division in FY 2018-19. The
Professional Services budget increase is due to a required biennial actuary report in FY 2018-19. Other
Expenses decrease is due to the inclusion of a non-usage allowance for tuition and professional expense
reimbursement in FY 2018-19.
Finance supports the agency by providing transparent financial information and works, in conjunction
with the Engineering Department, to provide the rate and debt funding to address the principal issues
facing Central San. The Division plays a significant role in specifying the costs of Central San's
functions, how those costs drive the need for rate adjustments and in developing financial alternatives to
keep rates moderated over the long-term through financing approaches. This data is used to document
why spending is necessary, that rate levels are no more than necessary to meet essential needs, provide
for long-term reliability, and appropriate levels of customer service. Finance will be working with other
divisions to implement a new financial system, as part of the Enterprise Resource Planning System
Replacement Project. The costs of the project are primarily budgeted in the capital budget, including
funding for supplemental staffing related to the project.
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Administration Department—Human Resources
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; organizational development, and all payroll functions.
Fiscal Year 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
M14
• Completed Recruitment Training for all District employees.
• Held various human resource topic related "brown bag" sessions
District employees.
• Held the second Management Academy.
• Began the second Supervisory Academy.
• Implemented annual Central San Mentorship Program.
Goal 4— + Completed the Roles and Responsibilities of Public Employees Training for
Develop and Retain a all District employees.
Highly Trained and • Negotiated Kaiser Permanente and Delta Dental rate decreases of
Innovative Workforce five percent and four percent, respectively, for FY 2017-18 premium rates,
resulting in an annual savings of$297,130.
• Implemented an additional tax-free commuter benefit to the existing Bay Area
Commuter Benefit Program.
• Partnered with the California Water Environment Association to assist in the
development of the state-wide California Water Environment Association
Testing Program.
Fiscal Year 2018-19 Key Metrics
2
New employees attending customer service training within 100%
6 months of employment 7od
Average time to fill vacancy(from request to hire) Less than 60 days
Turnover rate at or below Bureau of Labor Statistics' (BLS) Less than or equal to 18.8%
2016 local government industry average
Average annual training hours (external and internal 15 hours per full-time equivalent employee
training) FTE
Actual versus budgeted usage of training dollars Greater than 80%
Participation in annual Wellness Expo Increase by 10% each year
Internal promotions (excludes entry-level positions) Greater than or equal to 25%
Formal grievances filed Zero
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
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Administration Department—Human Resources
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Establish opportunities for internal
Goal 1 — partnerships and cross-divisional Enterprise Resiliency
Provide Foster Employee collaborations.
Exceptional Engagement and
Customer IntCollaboration
Cultivate employees' understanding of Leadership
ship oyee and
Service and District operations and their role in the Development,
Maintain an agency's success. Enterprise Resiliency
Excellent
Reputation in the Maintain a Strong Continue to participate in industry Employee and
Community Reputation in the trade organizations and apply for Leadership
Community certifications and awards. Development
Comply with All
Goal 2— Re-examine existing Department and
and State,,
Strive to Meet FederalAdministrative Procedures to ensure
Regulatory Local Regulations compliance with applicable laws and Enterprise Resiliency
Requirements Related to District regulations.
Administration
Goal 3— Effectively manage the cost of
benefits. Financial Viability
employee
Be a Fiscally
Responsible and Manage Costs Re-engineer business processes and
Effective complete optimization studies to Operational
Wastewater identify opportunities to reduce costs Optimization
Utility and align with best practices.
Assess, develop, and implement Employee and
Ensure Adequate p° p Leadership
Staffing and Training District-wide training needs. Development
to Meet Current and and
Employee
Goal 4— Future Operational Recruit, develop, and train future
Recruit, Develop, Levels leaders. Leadership
and Retain a Development
Highly Trained Employee and
and Safe Enhance Cultivate a positive work culture. Leadership
Workforce Development
Relationship with p
Employees and Sustain and grow collaborative Stakeholder
Bargaining Units relationships with the labor bargaining Understanding and
units. Support
Goal 6— Encourage the
Embrace Review and Testing Continue developing and investing in
Technology, of Technology to cost-effective innovation, technology, Operational
Innovation, and Optimize and and applied research and Optimization
Environmental Modernize Business development.
Sustainability Operations
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Administration Department-Human Resources
Budget Overview by Expense Category
Account FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19 Budget to Percent Budget to Percent
Description Budget Actual BudgetBudget
Variance Vairiance
Salaries& $727,877 $625,986 $1,049,32351,052,800 $1,263,408 $210,608 20% $214,085 20%
Wages _._.`.. ._
Employee $3,102,572 S491225 52.553.199 52,836.107 S2.071.145 ($764,962) -27% (5482,054) -19%
Benefits _
Retiree $5,362,300 57.904.628 $5.946.000 $5.620.960 $4.358,400 (S1,262,500) -22% ($1,587,600) -27%
Benefits I_
Unfunded 50 So SO SO S1,852,454 $1,852,454 900% $1,852,454 100%
Liabilities
Additional $2,500,000 $2,500,000 $2,500,000 52,500,000 $2,500,000 $o 0% 5o 0%
UAAL
Contributions"
Repairs& $0 $0 $7,500 $3,000 $3,500 $500 17% ($4,000) -5396
Maintenance
Professional& $126,100 $104,189 5166,450 $166,450 $166,450 s0 0% s0 096
Legal Services _
Outside $249,300 $377,165 $319,20D $344,200 $345,000 $800 0% $25.800 8%
Services
Materials& 518,000 622,959 520,000 520,200 f 531,000 $10,800 53% 511,00055%
Supplies _
Other $18,115 $19,374 $18,115 $20,830 $18,080 ($2,750) -13% ($35) 0%
Expenses
Total $12,104,264 $12,045,527 $12,579,787 $12,564,487 512,609,437 544,950 0% 529,650 096
*'Unfunded Liabilities were broken out in FY 2018-19 and included in Employee and Retiree Benefits line item in prior years.
**Additional UAAL: Costs for additional discretionary contributions to pay down employee related liabilities for the entire
Central San active and retiree base. These payments may be directed by the Board towards pension or OPEB liabilities.
Personnel Requirements
Regular Status . .yees FY2r 17 i2018-19
YE Actual
Human Resources Analyst 3.00 3.00 2.00
Human Resource Manager 1.00 1.00 1.00
Senior Administrative Technician
Payroll Analyst 0.00 0.00 1.00
Total 5.00 5.00 6.00
Significant Budget Modifications
The Human Resources Operating Budget for FY 2018-19 is $12.6 million, which remained flat
compared to the $12.6 million budget in FY 2017-18. Salaries & Wages include the agency-wide cost
of living adjustment, and the transfer of the Payroll Analyst position from Finance to Human Resources
in FY 2017-18, which was offset by cost savings from replacing a Human Resources Analyst position
with a Senior Administrative Technician position. The increase in Outside Services is due to an
increased number of recruitments for vacant positions and the cost for advertising and outreach.
Materials & Supplies increase is due to the transfer of the Employee Activities Organization costs from
the Office of the Secretary of District, and the transfer of expenses related to the Bring your Child to
Work Day event from Communication Services and Intergovernmental Relations.
Certain costs relating to all Central San employees or retirees are centrally budgeted in the Human
Resources Division. The following are items budgeted in Human Resources but not specific to that
division:
• Salaries and wages includes $400,000 for Compensated Absences Accrual Payments.
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Administration Department—Human Resources
• Employee benefits includes $450,000 for Accrued Compensated Absences, $30,000 for
Unemployment expenses.
• Retiree benefits includes all costs related to retirees including health insurance, dental
insurance, and life insurance.
• Unfunded Liabilities includes the costs for pension and OPEB trust payments. These costs
are due primarily to past investment performance not meeting actuarial assumptions, changes
in actuarial assumptions and de-pooling of Central San's staff from other participating
agencies of the Contra Costa County Employees' Retirement Association and from OPEB
prefunding only starting in 2009. These expenses are shown separately in FY 2018-19 and
prospectively.
Human Resources plays an important role in meeting the overall challenges that Central San is
addressing by working to ensure an engaged and motivated workforce. This includes administering the
employee performance review and performance planning process; administering the labor
memorandums of understanding, attracting and retaining talented employees through a competitive pay
and benefit structure, and providing training programs to ensure Central San managers, supervisors and
employees have the tools and knowledge to contribute to a high-performance organization.
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Administration Department—Information Technology
Information Technology
OVERVIEW
This Division supports all computer hardware, software, and telecommunications needs at Central San,
and assists with improvement and automation of Central San business processes.
Fiscal Year 2017-18 Accomplishments
This Division had many accomplishments related to the following Central San Goals:
Received Municipal Information Systems Association of California (MISAC)
Award of Excellence for the first time. This award demonstrates that Central
San has implemented best practices across the spectrum of IT services.
• Upgraded various software to latest versions including LabWorks software,
Goal 1 — WonderWare and Dynac server software, CityWorks tablets, SunGard ERP
Provide Exceptional and AutoCAD software.
Customer Service
• Implemented expanded network monitoring tools through Solar Winds.
• Closed 2,242 help desk tickets with 98% of survey responses rating the service
level as 5 stars.
• Maintained the network with better than 99.9% uptime overall.
• Fully implemented live replication of major business systems between the
Martinez campus and the Collection System Operations (CSO) division as well
as our new Rocklin co-location facility.
• Automated timekeeping and leave requests with Intellitime software to
eliminate manual paper methods.
. Implemented new public facing web site technology to make it easier to update,
Goal 6— facilitate mobile devices, make our website more engaging and to transform the
Embrace Technology, way we interact with our customers.
Innovation, and • Rolled out over 30 new iPads with CityWorks for Treatment Plant staff.
Environmental • Assisted in the acquisition of a new automatic vehicle location system for all
Sustainability Central San vehicles.
. Began live-streaming of Board meetings in the lobby and on web-accessible
devices.
• Worked with Asset Management Division to roll out IT Pipes video inspection
system.
• Worked with Secretary of the District staff to acquire and implement Novus
Agenda to automate the agenda management process.
. Detected and blocked over 3,200 attacks on our internet, 9,000 malware
attempts via web searches and 2,500 viruses through our email system.
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Administration Department—Information Technology
Fiscal Year 2018-19 Key Metrics
Information system outages affecting normal business 100% uptime
operations
Data backup and recovery Zero Lost Data
Operating expenditures as a percentage of operating budget Greater than 95%
Percentage of performance evaluations completed on time 100%
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Build External Invest in business process changes and
Customer technologies to effectively increase access Customer
Relationships and to District information and promote Satisfaction
Awareness customer care, convenience, and self-
service.
Goal 1 —
Provide
Exceptional Establish opportunities for internal Enterprise
Customer Service partnerships and cross-divisional Resiliency
and Maintain an Foster Employee collaborations.
Excellent Engagement and
Reputation in the Interdepartmental Employee and
Community Collaboration Cultivate employees' understanding of Leadership
District operations and their role in the Development,
agency's success. Enterprise
Resiliency
Maintain a Strong Continue to participate in industry trade Employee and
Reputation in the organizations and apply for certifications Leadership
Community and awards. Development
Comply with All
Goal 2— FederalStateand Re-examine existing Department and
, ,
Strive to Meet Administrative Procedures to ensure Enterprise
Regulatory Local Regulations compliance with applicable laws and Resiliency
Requirements Related to District regulations.
Administration
Goal 3— Re-engineer business processes and Operational
Be a Fiscally complete optimization studies to identify Optimization,
Responsible and Manage Costs opportunities to reduce costs and align Enterprise
Effective with best practices. Resiliency
Wastewater Utility ,
Goal 4—
Recruit, Develop, Enhance Relationship Employee and
and Retain a I with Employees and Cultivate a positive work culture. Leadership
Highly Trained Bargaining Units Development
and Safe
Workforce _
Goal 5— Protect District Enhance capability to mitigate, prepare for,
Maintain a Personnel and Assets respond to, and recover from Enterprise
Reliable from Threats and Resiliency
Infrastructure Emergencies emergencies.
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Administration Department—Information Technology
Evaluate and implement appropriate Enterprise
improvements to the Security Program to Resiliency
meet new or evolving threats.
Operational
Facilitate Long-Term Implement the Program Management Optimization,
Capital Renewal and Information System (PMIS). Infrastructure
Replacement Strategy and
Performance
Select and implement new Enterprise Operational
Resource Planning (ERP)system and
Goal 6— integrate with linked systems. Optimization
Embrace Encourage the
Technology, Review and Testing Expand and improve the use of worthwhile
of Technology to Operational
Innovation, and Optimize and mobile computing and communication Optimization
Environmental Modernize Business technologies.
Sustainability Operations p Continue developing and investing in cost- Operational
effective innovation, technology, and
applied research and development. Optimization
Budget Overview by Expense Category
Account FY i i i2018-19 Budget to Percent Budget to Perceryt
Description Bu..et Actual Budget Projected BudgetProjected ..
Variance Variance
Salaries& $1,393,793 $1,382,628 $1,508,704 $1,381,600 $1,569,307 $187,707 14% $60,603 4%
Wages.
Employee 51,195,703 511186,753 51,219,553 $1,145,974 $729,744 (5416,230) -6% (5489.809) 40%
Benefits 1.
Unfunded $0 $0 $o 30 $509.668 $509,668 100% $509.668 100%
Liabilities;! _
Utilities $95,040 $116,383 _$M,440 $125,900 $129,8001 $3,900 3% (516640) -11%i
Repairs& $767,650 $698,850 $886,750 $888,700 $1,047,090 $158,390 18% $160,340 1896
Maintenance
Outside $196,000 591.005 5125,000 $125,040 $110,000 {515,000) -12% ($95,000) -12%
Services
Materials& $10,200 $21,061 $61200 $6,200 $6,200 $0 0% 3o 0%
Supplies _
Other 542,566 531,812 545,935 530.961 535,525 54.564 15% (S10.410) -239i
Expenses
Total S3,700,951 $3.528,391 S3.938,5821 53,704.335 54.137,3341 5432.999 12% 5198,752 5961
*Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
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Administration Department—Information Technology
Personnel Requirements
FY 2016-17 FY 2017-18 FY 2018-19
: .. . .
YE Actual
Information Technology Analyst 1.00 1.00 0.00
Information Technology Manager 1.00 1.00 1.00
Information Technology Supervisor
Programmer Analyst 0.00 1.00 0.00
Project Manager/Business Analyst 1.00 1.00
System Administrator 2.00 2.00 2.00
Technical Support Analyst
Information Technology Analyst II 0.00 0.00 2.00
Total 10.00 11.00 11.00
Significant Budget Modifications
The Information Technology(IT) Division Operating Budget for FY 2018-19 is $4.1 million, a$0.2
million or 5% increase over the $3.9 million budget in FY 2017-18. The increase in Salaries &Wages
include the agency-wide cost of living adjustment and increases due to step advancements. The Repairs
& Maintenance increase is due to movement of plant control software into the IT budget, costs for new
software maintenance (including NovusAgenda, eBuilder Program Management Information System),
and increases to annual support maintenance contracts. The Outside Services decrease is due to changes
in network consultant utilization. The Other Expenses decreased is due to an off-site storage service no
longer being used in FY 2018-19.
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Administration Department—Purchasing and Materials Services
Purchasing and Materials Services
OVERVIEW
This Division provides the necessary materials, supplies, equipment, services and information to support
Central San's operations. The Division is responsible for contracting and procurement for all Central
San departments (except construction contracts), and ensuring compliance with applicable federal, state
and local regulations. Central San's warehouse inventories, receives, and distributes supplies, materials
and equipment to all departments in addition to providing inventory control analysis and surplus
disposition.
Fiscal Year 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
Developed high level flowchart outlining the different types of procurements
at the District and the associated processes and approvals with each type.
• Leveraged spend through annual requirements contracts for 40% of the total
procurement spend for goods and services, not including construction,
construction related professional services, and utility payments. This
improved efficiency, shortened the procurement processing time, and
provided savings through negotiated pricing contracts.
• Simplified requisition approval process from 18 different levels of approval
down to three levels of approval based on position to ensure consistency
and efficiency in the requisition approval process.
• Implemented a work order tracking system of all requisitions, including a
customer satisfaction survey for each purchasing transaction.
• Promoted open competition and equal opportunity for qualified suppliers and
service providers by successfully soliciting and awarding high-level service
Goal 3— and commodity-based contracts, such as financial advisory services,
Be a Fiscally Sound and timekeeping system, Pipeline newsletter printing and mail processing
Effective Water Sector services, core network switch upgrade, vibration monitoring and reporting,
Utility repairing seeps in soil cap, furnishing and installing water softener system,
repairing furnace#2 refractory, pharmaceutical collection program, solids
residence time (SRT) controller, fire extinguisher inspection and
maintenance, auditing services, vehicle wraps for Central San logos, and
equipment budget items.
• Implemented automatic notifications of upcoming expiring contracts to
project managers to ensure contract renewals are done in a timely manner.
• Provided ongoing administration of the procurement card program, including
oversight, problem solving, reviewing, updating, and training. Also, received
procurement card audit and made improvements in areas identified.
• Managed an inventory of approximately$2.2 million at three locations,
including ordering, storing, issuing, receiving and delivering.
• Completed cycle counts for 753 "A" items counted twice, 1,311 "B" items
counted twice, and 3,200 "C" items counted once while maintaining a 95%
count accuracy rate.
• Received the Achievement of Excellence in Procurement(AEP)Award
Goal 6— recognizing organizational excellence in public purchasing for the 7th
Embrace Technology, consecutive year.
Innovation, and • Implemented RFP evaluations online, replacing a manual, labor-intensive
Environmental process with a streamlined and fully automated process for evaluating
Sustainability proposals online and creating reports to substantiate the evaluation
committee's recommendation for award.
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Administration Department—Purchasing and Materials Services
Fiscal Year 2018-19 Key Metrics
Purchasing internal customer survey rating of satisfactory or Greater or equal to 70%
better
Difference in inventory value in Purchasing database vs. Less than 1%
value submitted to Accounting
Accuracy of physical inventory count vs. book value Greater or equal to 95%
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Goal ateg Initiative UM Attribute
Build External Invest in business process changes
Customer and technologies to effectively
Relationships and increase access to District information Customer Satisfaction
Awareness and promote customer care,
Goal 1 — convenience, and self-service.
Provide Establish opportunities for internal
Exceptional partnerships and cross-divisional Enterprise Resiliency
Customer Service Foster Employee collaborations.
and Maintain an Engagement and Employee and
Excellent Interdepartmental Cultivate employees' understanding of Leadership
Reputation in the Collaboration District operations and their role in the Development,
Community agency's success.
Enterprise Resiliency
Maintain a Strong Continue to participate in industry Employee and
trade organizations and apply for
Reputation in the certifications and awards. Leadership
Community Development
Comply with All
Goal 2— Re-examine existing Department and
and State,,
Strive to Meet FederalAdministrative Procedures to ensure
Regulatory Local Regulations compliance with applicable laws and Enterprise Resiliency
Requirements Related to District regulations.
Administration
Goal 3— Re-engineer business processes and
Be a Fiscally Operational
Responsible and Manage Costs complete optimization studies to Optimization,
Effective identify opportunities to reduce costs Enterprise Resiliency
Wastewater Utility and align with best practices.
Goal 4— Enhance
Recruit, Develop, Relationship with Employee and
and Retain a Cultivate a positive work culture. Leadership
Highly Trained and Employees and Development
Safe Workforce Bargaining Units
Goal 6— Encourage the
Embrace Review and Testing Continue developing and investing in
Technology, of Technology to cost-effective innovation, technology, Operational
Innovation, and Optimize and and applied research and Optimization
Environmental Modernize development.
Business
Sustainability
Operations
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Administration Department-Purchasing and Materials Services
Budget Overview by Expense Category
Account FY 2016-17 IFY r F2018-19 Budget to Percent Budget to Percent
ProjectedDescFiption Budget Actual Budget Projected
Variance Variance
Salaries& $857,600 $837,899 $1,001,079 $843,900 $1,058,883 $214,983 25% $57,804 6%
Wages L
Employee $782,607 $700,280 $834,953 $785,474 $508,940 [$276,534] -35% ($326,013)l -39%
'Benefits
Unfunded SO $0 so�SO' $346,563 S34S,563 100% 5348.563 100%
Liabilities'
Repairs& $23,000 $110,382 $23,000 $23,000 $23,000 $0 0% so 0%
_Maintenance
Professional& $35,000 $3,828 535,000 $20,000 f $35,000 $15,000 75% SO 0%
Legal Services. I _
Outside $29,000 $5,135 $29,000 $29,000 $49,000 $20,000 69% $20,000 69%
Services
Materials& $14,000 $17,419 $14,000' $14,000 $14,000 $0 0% $0 0%
Supplies
Other $29,900 $2,490 $211900 $16,900 $15,900 ($1,000) -6% ($6,000) -27%
Expenses
Total S1,763,1107S1 577 434 1 $1,958,932 $1,732,274 $2,051.286 $319,0121 118%1 592,354 5%
Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
t t
Materials Coordinator 00 1.00
Materials Services Supervisor 1.00 1.00 1.00
Purchasing and Materials Manager 1.00 1.00 1.00
Senior Buyer 3.00 3.00 3.00
Senior Materials Coordinator 1.00 IL 1.00 2.00
Contracts Analyst 0.00 0.00 1.00
Total 8.00 8.00 9.00
I .
Warehouse Summer Student 0.00 1.00 1.00
7
Total 0.00 1.00 1.00
Significant Budget Modifications
The Purchasing and Materials Services Division Operating Budget for FY 2018-19 is $2.1 million, a
$0.1 million or 5% increase over the FY $2.0 million budget in FY 2017-18. The increase in Salaries &
Wages includes the agency wide cost-of-living adjustment, the movement of a position from the Finance
Division(an Accountant position will be repurposed as a Contracts Analyst to support the increase in
contracting related to higher capital spending in the coming years), and the promotion of a Materials
Coordinator to Senior Materials Coordinator. The Division also expects to utilize a General Manager-
transition position to provide overlap for potential retirements within the unit and ensure optimal
transition for succession planning.
The Outside Services increase is due to a special projects consultant to assist the Division in identifying
and implementing performance improvements. The Other Expenses decrease is due to a reduction in
professional expense reimbursements.
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Administration Department—Purchasing and Materials Services
The Division is helping to address the overall challenges facing Central San by working to ensure there
is sufficient procurement processing capacity in light of increased contracting for infrastructure needs.
This includes the new Contract Analyst position; working to implement the new Enterprise Resource
Planning (ERP) system which is anticipated to significantly improve contracts management and
automated procurement functionality; and providing staff with better tools for productivity and internal
customer service. Purchasing, along with Capital Projects, will also work to adopt the Uniform Public
Construction Cost Accounting Act. This was approved by the Board in May 2018, and will be
implemented on September 1, 2018. This is expected to provide for a streamlined contracting process
for smaller projects and needed work.
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Administration Department—Risk Management
Risk Management
OVERVIEW
This Division protects Central San 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 Central San's Emergency Preparedness
and Response Programs.
Fiscal Year 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
Goal 3— Prepared and presented Risk Management Annual Report to the Board.
Be a Fiscally Sound and Provided Temporary Modified Duty to 100% of employees with occupational
Effective Water Sector injuries.
Utility • Received reimbursement from FEMA& CalOES for the January 2017 Winter
Storms.
• Initiated work on the Security Assessment Master Plan.
• Completed 5-year update of the Local Hazard Mitigation Plan.
• Updated various security policies.
Goal 5— • Established the Security Coordination Committee.
Maintain a Reliable • Coordinated biannual Risk Control Audit of District Operations and Practices.
Infrastructure e Updated the Emergency Operations Plan.
• Completed Vital Records section of Continuity Plan.
• Prepared and presented Emergency Management Annual Report to the
Board.
Fiscal Year 2018-19 Key Metrics
Workers' compensation experience modifier Less than 1.0
Temporary modified duty provided (Return to Work program) Greater than 95%of recordable injuries
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
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Administration Department—Risk Management
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Establish opportunities for internal Enterprise Resiliency
Foster Employee partnerships and cross-divisional
Goal 1 — Engagement and collaborations.
Provide Interdepartmental Cultivate employees' understanding Employee and
Exceptional Collaboration of District operations and their role Leadership
Customer Service in the agency's success. Development,
and Maintain an Enterprise Resiliency
Excellent Continue to participate in industry Employee and
Reputation in the Maintain a Strong trade organizations and apply for Leadership
Community Reputation in the certifications and awards. Development
Community Continue to participate in CaIWARN Community
to provide mutual aid to sister Sustainability
agencies.
Goal 2— Comply with All Re-examine existing Department
Strive to Meet Federal, State, and and Administrative Procedures to
Regulatory Local Regulations ensure compliance with applicable Enterprise Resiliency
Requirements Related to District laws and regulations.
Administration
Evaluate and apply risk
management practices to minimize Enterprise Resiliency
Goal 3— loss.
Be a Fiscally
Responsible and Manage Costs
Effective
Wastewater Utility Re-engineer business processes Operational
and complete optimization studies Optimization,
to identify opportunities to reduce Enterprise Resiliency
costs and align with best practices.
Goal 4—
Recruit, Develop, Enhance Relationship Employee and
and Retain a with Employees and Cultivate a positive work culture. Leadership
Highly Trained Bargaining Units Development
and Safe
Workforce
Enhance capability to mitigate,
prepare for, respond to, and Enterprise Resiliency
Goal 5— Protect District recover from emergencies.
Maintain a Personnel and Assets
Reliable from Threats and Evaluate and implement
Infrastructure Emergencies appropriate improvements to the
Security Program to meet new or Enterprise Resiliency
evolving threats.
Goal 6 - Encourage the Review
Embrace and Testing of Continue developing and investing
Technology, Technology to in cost-effective innovation, Operational
Innovation, and Optimize and technology, and applied research Optimization
Environmental Modernize Business and development.
Sustainability Operations
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Administration Department-Risk Management
Budget Overview by Expense Category
Account FY 2016-17 FY 2016-17 FY 2017-1 B FY 2017-18 FY rBudget
BudgetDescnption Budget Actual Projected Budget Projected Variance Budget
Variance Vafiance
Salaries& $238,944 $210,225 $240,149 $144,200 $262,093 $117,893 82% $21,944 9%
Wages
Employee $228,392 $207,251 —S196,621 $184.861 5101.561 ($83,300) -45% (5957060) 48%
Benefits
Unfunded $0 SO so T 50 S87.304 S87,304 100%' $87,304 100%
Liabilities
Repairs& $35,000 $4.572 $57,500$15,500 542,500 $27,000 17496 ($15,000), -26%
Maintenance
Professional& $81,800 540.808 $28,8130 $19,000 $28,350 $7,350 3996 ($2,450). -9%
Legal Services _
Outside 5408.x00 S267.565 $423,000 i $328,500 S453.500 $125,000 3896 530.500 7%
Services
Self-Insurance $920.000 5920.000 5585,000 $585,000 $779.500 $194,500 33% $194;500 33%
Expense �-
Materials& $103,000 S5.610 559.000 $53,000 553.000 $0 0% ($6,000) -10%
Supplies _
Other 513,650 S12.076 S14,6501 $10,015 S17,500 $7,485 75% $2,850 19%
Expenses
Total' $2,008,786 S1.668.104 j $1,604,720 51.340.076 $1,823,308 $483,232 36% $218.588 1496
Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
EmployeesRegular Status FY 17 i2018-19
YE Actual
anagement Administrator 1 nn 1.00 1.00
Iisk Management Specialist 0.00 0.00 1.00
isk Management Analyst Im 0.00 1.00 0.00
Total 1 1.00 2.00 2.00
Significant Budget Modifications
The Risk Management Operating Budget for FY 2018-19 is $1.8 million, a $0.2 million or 14% increase
over the $1.6 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living
adjustment and the reclassification of a Risk Management Technician to a Risk Management Specialist.
Increases in the FY 2018-19 budget include Outside Service, for specialized consulting service to
enhance the Emergency Operations Plan and the Continuity of Operations Plan, and Self-insurance, to
replenish the self-insurance fund to the required Reserve Policy target. The Repairs & Maintenance
decrease is due to a transfer of camera repair expenses to the Information Technology division.
The recent fires, floods, and mudslides in California demonstrated the need for properly equipped and
maintained emergency communications systems. Materials & Supplies includes funds to purchase
additional interoperable radios for vehicles and operations personnel. Our goal is to have sufficient
radios for an event requiring both emergency response and continuity functions.
Risk Management will expand its services in FY 2018-19 by making progress on an enterprise risk
management program that uses a continuously updated risk inventory as a foundation for managing
risks. This risk inventory will be used in Central San's internal audit program, and in reporting key risks
and mitigation strategies to the Board. Risk Management assists Central San in managing risks (broadly
defined as anything that can impede Central San from meeting its strategic goals) effectively. Building
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Administration Department—Risk Management
this program's capacity will be an important tool in helping Central San mitigate risks as the agency
ramps up the level of capital spending in the coming years, and in meeting evolving regulatory
requirements. Risk Management helps Central San meet these and other challenges of the environment
in which the agency operates.
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Administration Department—Office of the General Manager and Office of the Secretary of the District
Office of the General Manager and
Office 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 to establish
policies and procedures, as well as the overall goals and Strategic Plan of Central San. The General
Manager reports directly to the Board and provides general oversight to all Central San operations,
interagency relations, legislative activities, communications, and the Strategic Plan.
Office of the General Manager - Fiscal Year 2017-18 Accomplishments and
Fiscal Year 2018-19 Strategic Initiatives
This office provides direction, support and resources to Departments to effectively and efficiently
accomplish the Mission, Vision and Goals of Central San. The accomplishments and FY 2018-19
Strategic Initiatives for Central San are embodied in each of the individual Divisions and programs.
Highlights of Central San's accomplishments are included in the General Manager's message at the
beginning of this book. Central San also documented major efficiency and operational improvements in
a report entitled "Innovations and Achievements" and documented over 200 standard operating
procedures District-wide.
Office of the Secretary of the District - Overview
The Secretary of the District reports directly to the Board and provides administrative support to the five
elected Board Members. The Office of the Secretary of the District manages the Board and Committee
meeting processes, 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 Central San, coordinates elections with the
County Elections Office, and arranges Ethics training and Brown Act training for the Board and staff. It
also manages Central San's Records Management Program and responds to Public Records Act
requests.
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Administration Department—Office of the General Manager and Office of the Secretary of the District
Office of the Secretary of the District
Fiscal Year 2017-18 Accomplishments
The Office of the Secretary of the District had several accomplishments related to the
following Central San Goals:
• Successfully transitioned new Secretary of the District upon retirement of
prior Secretary of the District.
• Coordinated all regular and special meetings of Board of Directors and
Standing Board Committees, including publishing all agenda packets in a
timely manner.
• Coordinated Board Self-Assessment Workshop and annual review of
Board Compensation and Benefits.
Goal 1 — 0 Facilitated adoption of the following new Board policies: Debt
Provide Exceptional Management and Continuing Disclosure, Cost of Service Studies, Use of
Customer Service Temporary Employees, Reimbursement of Toastmasters Dues, and
Conducting District Business Using Personal Accounts and Devices.
Coordinated biennial review of existing Board policies and facilitated
amendments to the following Board policies: Board Ethics and Conduct;
Standing Committee Protocols, Guidelines and Charters; Fiscal Reserves:
and Investment Policy.
Facilitated newly mandated biennial Sexual Harassment Prevention
Training for Board Members.
Goal 3— Retained a consultant to work with staff to upgrade the Master Records
Be a Fiscally Sound and Retention Schedule and lay foundation for management of electronic
Effective Water Sector records
Utility
Goal 4— Conducted employee workshop on the Brown Act/Ethics Compliance.
Develop and Retain a • Updated "Guide to the Board Meeting Process"for use by staff.
Highly Trained and
Innovative Workforce
Goal 6—
Embrace Technology, • Implemented NovusAgenda management software for Board and
Innovation and
Environmental Committee agendas.
Sustainability
Fiscal Year 2018-19 Key Metrics
Biennial review of all existing Board policies 100%
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
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Administration Department—Office of the General Manager and Office of the Secretary of the District
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Provide high-quality customer service. Customer
Satisfaction
Invest in business process changes and
Build External technologies to effectively increase Customer
Customer access to District information and Satisfaction
Relationships and promote customer care, convenience,
Goal 1 — Awareness and self-service.
Provide Increase customer understanding and Stakeholder
Exceptional support for key District initiatives, Understanding and
Customer Service programs, and services. Support
and Maintain an Establish opportunities for internal Enterprise Resiliency
Excellent and cross-divisional
Reputation in the Foster Employee partnerships
CommunityEngagement and collaborations.
Interdepartmental Cultivate employees' understanding of
Collaboration District operations and their role in the Customer
agency's success. Satisfaction
Maintain a Strong Continue to participate in industry trade Employee and
Reputation in the organizations and apply for certifications Leadership
Community and awards. Development
Goal 2— Comply with All Review all existing Board Policies every Enterprise Resiliency
Strive to Meet Federal, State, and two years to ensure relevancy.
Regulatory Local Regulations Re-examine existing Department and
Requirements Related to District Administrative Procedures to ensure Enterprise Resiliency
Administration compliance with applicable laws and
regulations.
Goal 4— Enhance
Recruit, Develop, Relationship with Employee and
and Retain a Highly Employees and Cultivate a positive work culture. Leadership
Trained and Safe Bargaining Units Development
Workforce
Encourage the
Goal 6— Review and
Embrace Testing of Continue developing and investing in
Technology, Technology to cost-effective innovation, technology, and Operational
Innovation, and Optimize and applied research and development. Optimization
Environmental Modernize
Sustainability Business
Operations
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Administration Department-Office of the General Manager and Office of the Secretary of the District
Budget Overview_ by Expense Category
io-INEFraimr
Mf M- i
Budget19 Budget to Percent Budget to Percent
Description .g
Variance Variance
Sataries& $1,502,326 $1,546,723 $1,366,016 51,279,600 51,238,422 (341,178) -3%. ($127,594)! -9%
Wages
Employee $957,263 $1,517,991 $619,571 $992,286 $91,255 ($901,031) -91%5 ($528,316) -85%
Benefits
Unfunded 50 $0 50 50 $333,2110 $333,210 10095 $333,210 100%
Liabilities'
Director Fees $168,555 $136,316 $168,631 $150,881 $168,494 $17,613 12% ($137) 0%
&Expenses__ _
Repairs& $10,800 $7.763 $10,800 $10,400 $14,300 $3.900 38% $3.500 32%
Maintenance _
Professional& S145.000 S168.886 S150.000 $150,000 $175,000 S25.000 17% S25.000 17%
Legal Services
Outside $246,000 587,526 $146.000 $133,000 $150,000 S17.000 1395 $4.000 3%
'Services _
Materials& $20.150 $]5,612 $20,150 516,150 520.150 54,000 25% SO 0%
Supplies _ T
Other S559,905 $269,151 5148,325 S108,325 $388,430 $280,105 259% 5240,105 162%
Expenses _
Total S3:619:999 $3,749,968 $2,629,493 52,840,642 52,579,261 (5261.381) -9% (550.232) 2%
*Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
IF FY 2016-17 FY 2017-18 FY 2018-19
YE Actual
Administrative Services Supervisor 1.00 1.00 1.00
Administrative Technician 0.00 0.00 1.00
Assistant to the Secretary of the District 1.00 1.00 00
Director of Finance&Administration 1.00 1.00 1.00
Executive Assistant 1.00 1.00
General Manager 1.00 1.00 1.00
Management Analyst 0.00 1.00 1.00
Secretary of the District 1.00 1.00 1.00
Senior Administrative Assistant
Senior Administrative Technician 2.00 3.00 2.00
Total 9.00 11.00 11.00
7Clericalmmer Student 1.00 1.00 .00
Total 1.00 1.00 1.00
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Administration Department—Office of the General Manager and Office of the Secretary of the District
Significant Budget Modifications
The Office of the General Manager/Office of the Secretary of the District's Operating Budget for FY
2018-19 is $2.6 million, which remained flat compared to the $2.6 million budget in FY 2017-18.
Salaries &Wages include the agency-wide cost of living adjustment, offset by reductions due to staff
turnover and lower costs for newer employees. Other drivers include an update of Central San's Record
Retention Schedule and Procedures, resulting in an increase in Professional &Legal Services, and Fall
2018 election expenses resulting in an increase in Other Expenses.
The Office of the General Manager,budgeted in this division, leads the effort to address all of the key
priorities facing Central San, as described in the General Manager's budget message. The office of the
Secretary of the District assures the ongoing flow of information to and from the Board, facilitating
policy direction and oversight.
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Engineering and Technical Services Department
7.
Y
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, construction and/or rehabilitation of treatment plant, collection
system, and recycled water infrastructure. The Department also handles
development services, including: right-of-way, property management,
inspection, mainline plan review, and program management in resource
recovery. Divisions within the department are responsible for environmental
compliance monitoring of industrial businesses; regulatory compliance and
permit monitoring; laboratory analysis; and management of the Household
Hazardous Waste Collection Facility.
The Divisions that comprise this Department include:
• Capital Projects
• Environmental and Regulatory Compliance
• Planning and Development Services
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Engineering and Technical Services Department—Capital Projects Division
Capital Projects Division
OVERVIEW
This Division conducts and manages the preliminary design, final design, public bidding, and
construction management of projects to improve or rehabilitate our wastewater treatment plant,
pumping stations, collection system pipelines, general facilities, safety, and recycled water
infrastructure projects. In addition, this Division works as one of the primary engineering resources at
Central San.
Fiscal Year 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
Goal Accomplishment � f
• Received greater than 95% customer satisfactory rating, including: 100%
satisfactory customer rating on the Lafayette Sewer Renovations— Phase 11,
98% satisfactory customer rating on the Walnut Creek Sewer Renovations—
Goal 1 — Phase 11, 95% satisfactory customer rating on the Martinez Sewer Renovations—
Provide Exceptional Phase 5, 80% satisfactory customer rating on the Pleasant Hill—Grayson Creek
Customer Service Trunk Sewer.
Coordinated and performed emergency sewer repairs on Miner Road in Orinda, a
sewer repair near the Willows Shopping Center in Concord, and a sinkhole repair
1 at St. Mary's College in Moraga.
• Completed construction of the Pleasant Hill-Grayson Creek Trunk Sewer Project,
whose scope of work included installation of 10,000 feet of trunk sewer.
• Replaced approximately five miles of various sewer mains (primarily 6-inch
vitrified clay sewers)with new 8-inch sewers in Lafayette, Martinez, Walnut
Creek, and several locations within unincorporated Contra Costa County.
• Awarded five projects in the Collection System Program, totaling up to seven
miles of new sewers for Alamo, Lafayette, Moraga, Orinda, Walnut Creek, and
several other locations within unincorporated Contra Costa County.
Goal 5— • Initiated design of several collection system sewer replacement projects in
Maintain a Reliable Lafayette, Orinda, Walnut Creek, and other locations throughout the service area.
Infrastructure • Completed the predesign on the Pumping Station Upgrades Project, which
includes the Moraga, Orinda Crossroads, and FlushKleen Pumping Stations.
• Completed construction of two wastewater treatment plant projects: 1. Pump and
Blower Building Seismic Upgrades, which retrofitted the Pump and Blower
Building by adding shear walls and steel braces to strengthen the building to
current seismic code standards and support employee safety; and 2. The Co-Gen
Optimization Project, which included installation of a carbon monoxide catalyst
and evaporative cooling system to the gas turbine at the Solids Conditioning
Building.
Goal 6— Completed construction of the Co-Gen Energy Optimization Project to increase
Embrace energy efficiency and reduce emissions for the treatment plant.
Technology, • Supported and completed a pilot-scale facility to test newer air pollution control
Innovation, and technology at the treatment plant.
Environmental • Supported the BioEnergy project, and other thermal solids energy production
Sustainability projects such as the Hypowers pilot project to produce biocrude from solids.
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Engineering and Technical Services Department—Capital Projects Division
Fiscal Year 2018-19 Key Metrics
Median customer satisfaction rating on construction projects Greater than 95%
Greater than 0.5% of assets
Miles of pipeline replaced (7.6 miles per year for the next
five years starting in FYs 2018-
20)
Capital expenditures as a percentage of capital budgeted cash flow Greater than 90%
including carry forward
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Build External
Customer Provide high-quality customer
Customer Satisfaction
Relationships and service.
Awareness
Establish opportunities for internal
Goal 1 — Foster Employee partnerships and cross-divisional Enterprise Resiliency
Provide Exceptional Engagement and collaborations.
Customer Service Interdepartmental Cultivate employees' understanding Employee and Leadership
and Maintain an Collaboration of District operations and their role Development,
Excellent
Reputation in the in the agency's success. Enterprise Resiliency
Community Continue to participate in industry
trade organizations and apply for Employee and Leadership
Maintain a Strong certifications and awards. Development
Reputation in the
Community Minimize impacts to residents and
businesses during design and Customer Satisfaction
construction of projects.
Goal 2— Comply with All
Strive to Meet Federal, State, and Re-examine existing Department
and Administrative Procedures to
Regulatory Local Regulations ensure compliance with applicable Enterprise Resiliency
Requirements Related to District
laws and regulations.
Administration
Goal 3—
Be a Fiscally Review business processes and
Responsible and Manage Costs complete optimization studies to Operational Optimization,
Effective identify opportunities to reduce Enterprise Resiliency
Wastewater Utility costs and align with best practices.
Goal 4— Enhance
Recruit, Develop, Relationship with Employee and Leadership
and Retain a Highly Employees and Cultivate a positive work culture. Development
Trained and Safe Bargaining Units
Workforce
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Engineering and Technical Services Department-Capital Projects Division
EUM Attribute
. .
Update the Ten -Year Capital
Manage Assets Improvement Program (CIP)
Optimally consistent with recommendations of Infrastructure Strategy
Throughout Their the Comprehensive Wastewater and Performance
Lifecycle Master Plan and Asset
Management.
Integrate data from the Asset
Management Program into the
analysis of long-term Capital Infrastructure Strategy
Facilitate and Performance
Long-Term Capital Improvement needs based on the
Goal 5- Renewal and Ten -Year CIP.
Maintain a Reliable Replacement Complete the implementation of the Operational Optimization,
Infrastructure
Program Management Information Infrastructure Strategy
System (PMIS). and Performance
Evaluate and implement
Protect District appropriate improvements to the
Security Program to meet new or Enterprise Resiliency
Personnel and y g
Assets from evolving threats.
Threats and
Emergencies Improve the potable water system
and enhance water quality testing Product Quality
procedures.
Goal 6- Encourage the
Embrace Review and Testing Continue developing and investing
Technology, of Technology to in cost-effective innovation,
Innovation, and Optimize and technology, and applied research Operational Optimization
Environmental Modernize and development.
Sustainability Business
Operations
Budget Overview by Expense Category
Account FY 2016-17 FY 201&17 FY 2017-18 FY 2017-18 FY r`18-19 Budget to Percent Budget
Description ..et Actual Budget Projected Budget Projected Variance Budget
Variance Variance
Salaries& $1,879,280 $1,679,199 51,887,522 $1,643,100 $1,959,112 $316,012 19% $71,590 4%
Wages _
Employee ($887,526) ($1,053,380) ($1,279,905) ($1,347,824) ($1,851,611) ($503,787) 37% ($571,706) 45%
_!Benefits _
Unfunded $0 $0 $0 $0 $585,833 $585,833 100% $585,833 100%
_Liabilities_
Utilities $24,000 $15.737 $21,600 $22,387 $22,800 $413 2% $1,200 646-
Repairs
%Repairs& $19,500 $8,862 $3,500 $3,000 $3,000 $o 0% ($500] -14%
Maintenance
Outside $7345 532,160 $44,725 $34,6001 541,100 $6,500 19% ($3,625) -8%
Services
Materials& $32,300 $23,107 $30,700 $27,559 $28,700 $1,141 4% ($2,000) -7%
Supplies
Other $59,1251 S26,205 $58,280 $40,800 $46,920 $6,120 15% (511,360) -19%
Expenses
Total $1,199,904 $731,890 $766,422 S423;622 $835,854 $412,232 97% $69,432 9%
*Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Note: The staff in this Division are budgeted with the Capital Improvements Program.As a result, 98% of their combined
salary and benefit expenses are paid for by the projects identified in the Capital Improvement Budget. The amounts above are
net of the capitalized administrative overhead transfer to the Sewer Construction Fund.
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Engineering and Technical Services Department-Capital Projects Division
Personnel Requirements FY
Employees17 Y
Regular Status Actual i i
Administrative Assistant 1.00 2.00 2.00
Assistant Engineer 8.00 8.00 7.00
Assistant Land Surveyor 2.00 2.00 2.00
Associate Engineer up 5.00 7.00 7.00
Capital Projects Division Manager 1.00 1.00 1.00
Engineering Assistant III 1.00 .00
Engineering Technician III 0.00 3.00 3.00
Land Surveyor 3.00 1.00 1.00
Senior Engineer 1.00 2.00 3.00
Senior Engineering Assistant 2.00 1.00 1.00
Total 25.00 28.00 28.00
d Duration EmployeesFY 17 YE i
Actual
Summer Students I 4.00 4.00 3.00
Interns 6.00 3.00 3.00
Total 10.00 7.00 6.00
Significant Budget Modifications
The Capital Projects Operating Budget for FY 2018-19 is $0.8 million, a$70K or 9% increase over the
$0.7 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living
adjustment and a position changed from an Assistant Engineer to a Senior Engineer. The Outside
Services decrease is due to work being performed internally by Central San staff and the Other Expenses
decrease is due to the inclusion of a non-usage allowance for tuition and professional expense
reimbursement in FY 2018-19.
The Capital Projects Division leads Central San's efforts in maintaining and upgrading aging
infrastructure, as well as implementing projects driven by the need to meet evolving regulatory
requirements. The Capital Projects Division will also oversee projects related to other strategic
priorities of Central San, including playing a role in maintaining a sustainable water supply, and projects
related to resource recovery. The Division is building its capacities to effectively administer a
significantly larger Capital Improvements Program in future years. This includes implementing a
program management information system, using outside resources to supplement Central San staff, and
with Purchasing, working to implement the Uniform Public Construction Cost Accounting Act on
September 1, 2018.
As noted in the footnote to the Budget Overview table, most of the cost of the staff in this division are
charged to the capital projects the group oversees and manage.
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Engineering and Technical Services Department—Environmental and Regulatory Compliance Division
Environmental and Regulatory Compliance Division
OVERVIEW
This Division oversees and ensures that Central San activities and operations are in compliance with
applicable federal, state, and local environmental laws, regulations, and policies. The Division ensures
Central San's permitted businesses and industrial customers comply with all applicable requirements to
protect the environment as well as Central San's assets; manages the Household Hazardous Waste
Collection Program and Residential Recycled Water Fill Station; receives and interprets laboratory data
and applies results to regulatory requirements, ensuring 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 Central San before boards,
political bodies, committees, and the general public.
Fiscal Year 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
Accomplishment
• Achieved 20th year of continuous compliance with all National Pollutant Discharge
Elimination System (NPDES) permit requirements.
Completed all NPDES-required analysis, monitoring, and reports to meet the
Regional Water Quality Control Board (individual NPDES Permit, Nutrient
Goal 2— Watershed Permit, PCB and Mercury Watershed Permit) requirements.
Strive to Meet All • Completed all required analysis, monitoring, emissions testing, and reports to
Regulatory satisfy Title V Permit requirements.
Requirements • Prepared the 2017 greenhouse gas (GHG) inventory and completed third-party
inventory verification to meet the California Air Resource Board regulations.
• Successfully maintained 2017 anthropogenic greenhouse gas (GHG) emissions
below the Cap and Trade inclusion threshold.
• Completed all required Pollution Prevention and Pretreatment Reports.
• 42,800 visits to the Household Hazardous Waste Collection Facility and Residential
Recycled Water Fill Station by residents, small businesses, reuse customers, retail
Goal 6— partners, and residential fill station users (through March 2018).
Embrace . Managed complex emissions and liquid testing for the award-winning Wet Scrubber
Technology, System Pilot Plant for proof of performance and future design parameters.
Innovation, and . Completed liquid testing for the wet scrubber system.
Environmental
Sustainability . Evaluated soil remedial alternatives for contaminated soil at the Surcharge Fill
Area.
• Implemented use of tablets in the field for Environmental Compliance Inspections.
Fiscal Year 2018-19 Key Metrics
National Pollutant Discharge Elimination System (NPDES) Zero violations
compliance
Title V compliance Zero violations
Recycled Water Title 22 compliance Zero violations
Anthropogenic GHG emissions Less than 25,000 metric tons CO2e
Annual Environmental Compliance inspections and permitting 100°/0
completed on time
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Engineering and Technical Services Department—Environmental and Regulatory Compliance Division
Household Hazardous Waste (HHW) management compliance Zero violations
Potable water system monthly testing meets all water quality 100%
standards
Operating expenditures as percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
• r I • 1
Build External Customer Provide high-quality
Relationships and Customer Satisfaction
Awareness customer service.
Goal 1 — Establish opportunities for
internal partnerships and
Provide Enterprise Resiliency
Exceptional Foster Employee cross-divisional
Customer Service Engagement and collaborations.
and Maintain an Interdepartmental Cultivate employees'
Excellent Collaboration understanding of District Employee and Leadership
Development,
operations and their role in
Reputation in the p
Community the agency's success. Enterprise Resiliency
Maintain a Strong Continue to participate in
Reputation in the industry trade organizations Employee and Leadership
Community and apply for certifications Development
and awards.
Meet existing regulations. Product Quality
Foster relationships with Stakeholder Understanding
regulatory agencies. and Support
Strive to Achieve 100% Track proposed and
Permit Compliance in pending legislation or
Air, Water, Land, and regulatory changes; plan Stakeholder Understanding
Goal 2— Other Regulations for possible and Support
Strive to Meet implementations.
Regulatory Actively manage GHG
Requirements emissions in the most cost-
effective and responsible Community Sustainability
manner.
Evaluate existing
Comply with All Federal, Department and
State, and Local Administrative Procedures Enterprise Resiliency
Regulations Related to to ensure compliance with
District Administration applicable laws and
regulations.
Goal 3— Evaluate business
Be a Fiscally processes and complete
Responsible and Manage Costs optimization studies to Operational Optimization,
Effective identify opportunities to Enterprise Resiliency
Wastewater Utility reduce costs and align with
best practices.
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Engineering and Technical Services Department-Environmental and Regulatory Compliance Division
Initiative EUM Attribute
..
Goal 4-
Recruit, Develop, Enhance Relationship positive work Employee
and Retain a with Employees and Cultivate a p and Leadership
Highly Trained Bargaining Units culture. Development
and Safe
Workforce
Goal 5- Protect District
Maintain a Personnel and Assets Improve and enhance the
Reliable from Threats and potable water system water Product Quality
Infrastructure Emergencies quality testing procedures.
Goal 6- Encourage the Review Continue developing and
Embrace and Testing of investing in cost-effective
Technology, Technology to Optimize innovation, technology, and Operational Optimization
Innovation, and and Modernize Business applied research and
Environmental Operations development.
Sustainability
Budget Overview by Expense Category
Account FY 2016-17 FY 1 I I18-19 Budget to Percent Budget
Description ..•t Actual Budget Projected Budget Projected Variance Budget
Variance Variance
Sa#anes& $3,412,647 $3,321,204 53,542,344 $3,495,500 $3,594,027 $98,527 3% $51,683 1%
Wages
Employee $2,672,956 $2,631,201 $2,670,133 $2,598,401 $1,480,320 {$1,118,481} -43% ($1,189,813) 45%
Benefits
Unfunded SO $o SO S0 $1,140,247 51,140,247 100% 51,140,247 70496
Liabilities
_Utilities $32,700 $14,368 $24,300 $13,500 $13,500 $0 096, ($10,800) -44%
Repairs& $106,500 568,400 $110,000 $81,541 I $109,Opo $27,459 34% ($1,000) -9%
Maintenance L
Hauling& $423,000 $481,909 $474,925 $494,383 i $538,425 $44,042 9% $63,500 13%
Dis sal
Professional&1 $6,000 $o $6,000 $1,0001 $6,000 $5,000 $0 0%
Legal Services_i
Outside 5859,200 5832,577 5570,500 5480,200 $594,500 $114,300 24% 524,000 4%
Services
Materials& $286,700 $292,373 $300,200 $299,300 $308,500 $9,200 3% $8,300 3%
Supplies
Other $133,639 $386,941 $147,302 $123,026 $150,880 $27,854 23% $3,578 2%
Expenses
Other $310,000 $0 5605,816 $403,586 $482,000 558,414 1496 ($143,816) 24%
Expenses-
BACWA _
Total 58.243.342 S8,028,974 58,451,520 $7,990,437 $8,397.399 5406.962 5% ($54,121). -1%
*Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
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Engineering and Technical Services Department-Environmental and Regulatory Compliance Division
Personnel Requirements
FY 201Regular Status 6-Actual YE 17
i2018-19
Administrative Assistant 1.00 1.00 1.00
Assistant Engineer 2.00 2.00 2.00
Associate Engineer 1.00 1.00 1.00
Chemist 1/11 4.00 5.00 5.00
Chemist III 1.00 A 1.00
Environmental and Regulatory 1.00 1.00 1.00
Compliance Division Manager _
Environmental Compliance Inspector 1/II 6.00
Environmental Compliance 1.00 1.00 1.00
Superintendent
Household Hazardous Waste Supervisor 1.00 1.00 1.00
Household Hazardous Waste Technician 3.00 3.00 3.00
I/II
Laboratory Superintendent 1.00 1.00 1.00
Senior Chemist 1.00 1.00 1.00
Senior Engineer 1.00
Senior Environmental Compliance 2.00 2.00 2.00
Inspector
Senior Household Hazardous Waste 2.00
Technician 40 -
Total 28.00 29.00 29.00
FY 2016-17
. . Actual YE i
Laboratory Assistant Summer Student 1900 2.00 2.00
Intern 1.00 1.50 2.00
MW Total 2.00 3.50 4.00
Significant Budget Modifications
The Environmental and Regulatory Compliance Operating Budget for FY 2018-19 is $8.4 million, a
$50K or 1% decrease over the $8.5 million budget in FY 2017-18. Salaries &Wages include the
agency-wide cost of living adjustment, offset by reductions due to staff turnover and lower costs for
newer employees. Other changes include a decrease in Utilities due to lower telephone expenses and
lower BACWA-related expenses due to lack of need for additional funding for nutrient studies. Those
decreases were offset by increases in Outside Services for increased temporary staff expenses at the
Household Hazardous Waste (HHW) facility and outside laboratory service expense increases and
increases in Hauling &Disposal for HHW.
The Environmental and Regulatory Compliance Division plays the leading role in monitoring evolving
regulation and environmental compliance requirements promulgated by State and Federal agencies, and
assuring that Central San is positioned to meet these requirements.
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Engineering and Technical Services Department—Planning and Development Services Division
Planning and Development Services Division
OVERVIEW
This Division provides planning and applied research for Central San'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, Capacity 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 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
Goal Accomplishment
Goal 1 — . Received 95% satisfactory customer rating on permit counter interactions.
Provide Exceptional . Held two Sewer Summits for 10 partner agencies.
Customer Service
Goal 3— • Amended District Code to reference Accessory Dwelling Unit(ADU) language
Be a Fiscally Sound from Government Code Section 65852.2 (SB 229).
and Effective Water • Amended Capacity Fee schedule to include waiver of capacity fees for ADUs
Sector Utility "contained within existing space" and proportionate capacity fees for new
conforming ADUs.
• Led the Sewer System Management Plan 5-Year Update.
• Started implementation of a new Program Management Information System
(PMIS) platform called e-Builder®for the Capital Improvement Program.
• Completed asset register for Pumping Stations and Treatment Plant assets.
• Completed implementation of InfoMaster®sewer renovation risk model
InfoWorks®hydrodynamic model and flow calibration.
Goal 5— . Commenced studies to optimize treatment plant secondary and solids processes.
Maintain a Reliable The goals include reduced future capital improvements and increased operating
Infrastructure efficiencies.
Evaluated 20 District facilities and completed the District-wide
Vulnerability/Security Study.
• Completed implementation of CCTV software and USA locating software to
support CSO.
• Continued to support internal users and provide system administration for GIS,
CMMS, &web mapping.
• Started Phase 1 of a multi-agency coalition to plan and design a three dry ton per
day innovative hydrothermal bioenergy pilot project (which received $1.2 million
in grant funding from the Department of Energy), referred to as HYPOWERS
Goal 6— Project.
Embrace Technology, • Completed a $1 million wet scrubber, scrubber water treatment, and lime
Innovation, and reduction pilot to confirm performance and design criteria, which resulted in
Environmental $14 million in estimated savings from solids handling capital project.
Sustainability • Evaluated interest in a public-private partnership that would develop and
implement a Bioenergy Facility to process a portion of Central San's solids and
produce renewable energy.
• Started implementation of the Easement Initiative to optimize right-of-way
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Engineering and Technical Services Department—Planning and Development Services Division
Goal Accompl7is-Mm"e
documents for easy accessibility.
Received the San Francisco Bay Area and statewide California Water
Environment Association (CWEA) Engineering and Research — Research
Achievement of the Year Awards for the Wet Scrubber Pilot.
• Presented Migrating Legacy Applications into a Model-View-Controller
Framework at the Adobe Cold Fusion Summit.
• Gave InfoMaster®presentation at the AWWA Infrastructure Conference.
• Presented on HYPOWERS at the CASA/CWEA Innovation Seminar.
• Presented Optimization After Your Master Plan at the CWEA 2018 Annual
Conference.
Fiscal Year 2018-19 Key Metrics
Median customer satisfaction rating on permit —Greater than 95%
counter interactions
Sewer Service Charge less than average of Bay Area
Service affordability maintained Agencies/ Sewer Service Charge plus Ad Valorem
tax less than average of Bay Area agencies
Gallons of recycled water distributed to external LGreater than 240 million gallons per year
customers
kWh of solar power produced at Collection System Greater than 220,000 kWh per year(reported as a
Operations and Household Hazardous Waste
I rolling average)
Facility
Reviews or pilot tests of new and promising Greater than 3 pilot tests or reviews per year
technology
Research papers and findings presented I Greater than 3 papers or presentations per year
Operating expenditures as a percentage of Greater than 95%
operating budget
Performance evaluations completed on time 100%
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Initiative EUM Attribute -
Provide high-quality customer Customer Satisfaction
service.
Goal 1 — Build External
Provide Customer Invest in business process
Exceptional Relationships and changes and technologies to
Awareness effectively increase access to
Customer Service District information and promote Customer Satisfaction
and Maintain an
Excellent customer care, convenience,
Reputation in the and self-service.
Community
Establish opportunities for
Foster Employee internal partnerships and cross- Enterprise Resiliency
Engagement and divisional collaborations.
Improve
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Engineering and Technical Services Department—Planning and Development Services Division
"Iff"I awl
. .
Interdepartmental
Collaboration Cultivate employees' Employee and Leadership
understanding of District Development,
operations and their role in the Enterprise Resiliency
agency's success.
Maintain a Strong Continue to participate in
Reputation in the industry trade organizations Employee and Leadership
Community and apply for certifications and Development
awards.
Goal 2— Comply with All Re-examine existing
Strive to Meet Federal, State, and Department and Administrative
Regulatory Local Regulations Procedures to ensure Enterprise Resiliency
Requirements Related to District compliance with applicable laws
Administration and regulations.
Ensure rate structure and fees Customer Satisfaction,
are consistent with cost of Financial Viability
service principles.
Present alternative financial
plans to the Board in FY 2018-
19 for necessary rate
Conduct Long- adjustments for FY 2019-20 Financial Viability,
Range Financial onward, including considering Infrastructure Strategy and
Planning the potential issuance of debt to Performance
Goal 3— fund the updated CIP in
Be a Fiscally conjunction with the overall
Responsible and financial plan.
Effective
Wastewater Utility
Develop alternatives for new
revenues and funding sources Financial Viability
(i.e., interagency agreements,
services, and recycled water).
Evaluate business processes
and complete optimization Operational Optimization,
Manage Costs studies to identify opportunities
to reduce costs and align with Enterprise Resiliency
best practices.
Goal 4— Enhance
Recruit, Develop, Relationship with Cultivate a positive work Employee and Leadership
and Retain a Highly Employees and culture. Development
Trained and Safe Bargaining Units
Workforce
Goal 5— Facilitate Long-Term Infrastructure Strategy and
Maintain a Reliable Capital Renewal and Integrate data from the Asset Performance
Infrastructure Replacement Management Program into the
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Engineering and Technical Services Department—Planning and Development Services Division
Initiative EUM Attribute
. .
analysis of long-term Capital
Improvement needs based on
the Ten -Year CIP.
Implement the Program Operational Optimization,
Management Information Infrastructure Strategy and
System (PMIS). Performance
Protect District Evaluate and implement
Personnel and appropriate improvements to Enterprise Resiliency
Assets from Threats the Security Program to meet
and Emergencies new or evolving threats.
Explore partnering Water Resource
opportunities. Sustainability,
Community Sustainability
Augment the
Region's Water Continue to support the
Supply development of a Water Resource
demonstration Satellite Water Sustainability, Community
Recycling Facility at Diablo Sustainability
Country Club.
Goal 6— Reduce Reliance on Explore opportunities for self-
Embrace Non-Renewable generation, conservation, and Community Sustainability
Technology, Energy efficiency.
Innovation, and
Environmental
Sustainability
Encourage the Continue developing and
Review and Testing investing in cost-effective
of Technology to innovation, technology, and Operational Optimization
Optimize and applied research and
Modernize Business
development.
Operations
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Engineering and Technical Services Department-Planning and Development Services Division
Budget Overview by Expense Category
Account FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY i18-19 Budget to Percent Budget
Description Budgetrr r r Budget Projected Variance Budget
Variance Variance
Salaries& $3,685,044 53,764,484 $4,464,830 $4,535,780 54,444,903 ($90,877) -2% (S19,927). 0%
Wages
Employee $1,770,926 51,801,061 $2,278,748 52,578,183 $761,183 [$1,817,000] -70951 ($1,517;565} -67%
Benefits
Unfunded $0 $O SO $0 $1,435,363 $1,435,363 100% $1,435,363 1013%
Liabilities x
Utilities 5120,400 $150,713 $137,300 $135,600 $138,900 $1,300 1% (5400) 0%
(Repairs& 559,400 520,504 $59,400 529,200 559,400 ! S30,200 103%, 5o 0%
_Maintenance
Professional& $115,000 $169,401 $165,000 $160,000 $1$5,000 $5,000 3%1 $0 0%
Legal Services
Outside 1579,100 $577,625 $569,542 3562,942 5634,542 $71,600 13% $65,000 11%
Services
Materials& $37,550 $46,333 $47,550 $41,150 $57,850 516,700 4196 $10,300 22%
Supplies
Other $88,474 $51.575 $94,025` $63,465 $105.012 -541.547 65% $10.987 12%
Expenses
Total 56.455,894 $6.581.696 57.816.395 S8.106,320 S7,800.153 (S306.167) 4% (S16.242) 0961
"Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Note: Some staff in this Division are budgeted with the Capital Improvements Program.As a result, 26%of their combined
salary and benefit expenses are paid for by the projects identified in the Capital Improvement Budget. The amounts above are
net of the capitalized administrative overhead transfer to the Sewer Construction Fund.
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Engineering and Technical Services Department-Planning and Development Services Division
Personnel Requirements FY
2016-17 YE FY 2017-18 FY 2018-19
Actual
Administrative Assistant 1.00 1.00 1.00
Administrative Services Supervisor 1.00 1.00 1.00
Assistant Engineer 09 12.0w
Associate Engineer 4.00 4.00 4.00
Construction Inspector 4.00 4.00 4.00
Development Services Supervisor 1.00 2.00 2.00
Director of Engineering and Technical
Services
Engineering Assistant III 4.00 5.00 5.00
Engineering Assistant 1/11 3.00 2.00 2.00
Engineering Technician 1/11 1.00 1.00 1.00
GIS Analyst 2.
GIS/CMMS Administrator 1.00 1.00 1.00
Maintenance Planner 1.00 1.00 1.00
Management Analyst 0.00 1.00 1.00
Planning and Development Services Division
Manager
Program Manager 1.00 1.00 1.00
Senior Engineer 4.00 4.00 4.00
Senior Right-of-Way Agent 2.00 2.00 2.00
Total 3 36.0W�:400r7
EmployeesLimited Duration FY 17 YE i
_t Actual
Engineering Assistant Summer Student 7.00 8.00 5.00
Intern 4.00 4.00 3.00
Total 11.00 1 12.00 8.00
Significant Budget Modifications
The Planning and Development Services Operating Budget for FY 2018-19 is $7.8 million,which
remained flat compared to the $7.8 million budget in FY 2017-18. Salaries & Wages include the
agency-wide cost of living adjustment and the addition of a General Manager-transitional position for a
Management Analyst in the Asset Management workgroup, offset by more time to be charged to both
the Capital Improvement and Recycled Water Programs. While not funded, the division anticipates the
use of a second General Manager-transitional position for a Construction Inspector to provide overlap
for potential retirements within the unit and ensure optimal transition for succession planning. Outside
Services is increasing to address additional fees for California Association of Sanitation Agencies
(CASA), and Materials & Supplies is increasing due to additional laboratory supplies.
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Engineering and Technical Services Department—Planning and Development Services Division
The Planning and Development Services Division's budget allows Central San to meet several key
challenges including:
• Maintaining customer awareness of Central San's important responsibilities, the costs involved
in meeting those responsibilities, and meeting their service level expectations.
• Customer concern about rate increases.
Both of the above are addressed through the Division's work in maintaining the financial plan and rate
setting, and the division works to balance the objectives of setting rates to fund important priorities for
Central San,while keeping rate adjustments moderated and no higher than necessary.
The Division also includes the staff and program costs for Central San's resource recovery efforts and
efforts to maintain a sustainable water supply.
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Operations Department
LJ V
1
s
The Operations Department consists of three Divisions, Central San's Safety
Program, and the Recycled Water Program who 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 and
to divert a portion of the wastewater to produce Title 22 recycled water. 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
• Safety Program
• Recycled Water Program
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Operations Department—Collection System Operations Division
Collection System Operations Division
OVERVIEW
This Division is responsible for cleaning, maintaining and repairing of over 1,500 miles of collection
sewers, trunk sewers and force mains in Central San's vast collection system, as well as maintaining the
recycled water distribution system. The Division is also responsible for the maintenance of all
Central San vehicles.
Fiscal Year 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
Accomplishment
Goal 1 — Responded to 197 customer service phone calls.
Provide Exceptional Achieved an average customer service satisfaction rating of 3.97 out of 4.0.
Customer Service *Average response to all emergency service calls was 40 minutes.
Goal 2— •Sanitary sewer overflows were 2.50 per 100 miles and there were no
Strive to Meet All Regulatory capacity related overflows.
Requirements •Cleaned 759 miles of sanitary sewers.
•Televised 167 miles of sanitary sewers.
•Completed over 987 services on Central San vehicles and equipment; on
schedule 100% of time.
•Completed over 16,156 cleaning schedules and work orders; completed on
schedule 99% of the time.
Goal 5— •Consolidated CCTV databases and replaced software with a more user
Maintain a Reliable friendly, remotely accessible software (IT Pipes).
Infrastructure • Implemented Fleet Diagnostic and AVL for District vehicles.
e Repaired two rodder assemblies in-house which is more cost effective and
efficient.
• Implemented a better ticket management software in USA/locating process
(Dig-Smart)
Fiscal Year 2018-19 Key Metrics
Average onsite response time for collection system emergency Less than 20 minutes
calls, during working hours
Average onsite response time for collection system emergency Less than 40 minutes
calls, after hours
Average customer service rating for emergency calls At least 3.8 out of 4.0 MEN
Sanitary sewer overflows Less than 2.5 spills per 100 miles of
pipeline
Spills to public wate]&M= Less than 3 per year
CPercent of spills less than 500 gallons Greater than 95%
Pipeline cleaning schedules completed on time Greater than 95%
FPipeline cleaning quality assurance/quality control (QA/QC) On at least 3% of pipelines cleaned on
an annual basis
Pipeline cleaning QA/QC passing rate Greater than 98%
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Operations Department-Collection System Operations Division
Uptime for vehicles and equipment 100%
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Initiative EUM Attribute
Build External Customer Provide high-quality
Relationships and Customer Satisfaction
Awareness customer service.
Establish opportunities for
internal partnerships and
Goal 1 — cross-divisional
Provide ExceptionalEnterprise Resiliency
Foster Employee
Engagement and collaborations.
Customer Service and Interdepartmental
Maintain an Excellent Cultivate employees' Employee and
Collaboration understanding of District Leadership
Reputation in the g p
Community operations and their role in Development,
the agency's success. Enterprise Resiliency
Maintain a Strong Continue to participate in Employee and
Reputation in the industry trade organizations Leadership
Community and apply for certifications Development
and awards.
Complete the collection
system scheduled Infrastructure Strategy
maintenance on time and and Performance
optimize cleaning
Strive to Minimize the schedules.
Number of Sanitary
Sewer Overflows Continue the pipeline
Goal 2— condition assessment and Infrastructure Strategy
Strive to Meet cleaning quality assurance
Regulatory program using the system- and Performance
Requirements wide CCTV program.
Re-examine existing
Comply with All Federal, Department and
State, and Local Administrative Procedures Enterprise Resiliency
Regulations Related to to ensure compliance with
District Administration applicable laws and
regulations.
Goal 3— Re-engineer business
Be a Fiscally processes and complete Operational
Responsible and Manage Costs optimization studies to Optimization,
Effective Wastewater identify opportunities to Enterprise Resiliency
Utility reduce costs and align with
best practices.
Initiative EUM Attribute
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Operations Department—Collection System Operations Division
Goal 4— Enhance Relationship Employee and
Recruit, Develop, and with Employees and Cultivate a positive work Leadership
Retain a Highly Trained Bargaining Units culture. Development
and Safe Workforce
Goal 5— Manage Assets Optimally Manage current vehicle Infrastructure Strategy
Maintain a Reliable Throughout Their fleet to provide maximum and Performance
Infrastructure Lifecycle value.
Goal 6— Encourage the Review Continue developing and
Embrace Technology, and Testing of investing in cost-effective Operational
Innovation, and Technology to Optimize innovation, technology, and Optimization
Environmental and Modernize Business applied research and
Sustainability Operations development.
106
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Operations Department-Collection System Operations Division
Budget Overview by Expense Category
Account IFY 2016-17 IFY t i i18-19 Budget to Percent Budget
Description Budget •. • . Budget Projected Variance Budget
Variance Variance
Salaries& $6,107,988 $5,733,334 56,164,374 $6,302,900 $6,272,384 ($30,516) 0% $108,010 2%
Wages I I 1
Employee $5,433,375 $4,898,698 55:087,527 $4,919,416 $3,031,2741 ($1,888,142) -30% ($2,056,253) 40%
Benefits
Unfunded $0 $0 50 $0 $1,942,922 $1,942,922 100% $1,942,922 100%
Liabilities
Utilities $139,400_ $164.312 $142.400 $156,100_._$145.400 ($10,740) -7% $3,000 2%
Repairs& $1,631,502 $1,823,744 $1,624.304 $1,416,904 I $1,474,504 ! S57.600 4%1 ($149,800) -9%
Maintenance
Hauling& $1131,000 $122,098 $131,000 $131,000 i $131,000 $0 0% $0 0%
Disposal
Professional& 35,000 WAN 57,500. S7,5001 $7,500 $0 0% $o 0%
Legal Services,
Outside $906,700 $144,183 $110,600 $61,700 $59.680 ($2,020) -3°Io ($50,920) -46%
Services
Materials& 1 $774,150 $742,705 $749,550 $728,651I $756,951 $28,300 4% $7,401 1%
Supplies
Other $142,938 $121,704 $138,958 $124,473 $138,445 $13,972 11% ($513) 0%
Expenses
Total $14,472,053 $13760 274 $14,156,213 1 $13,80.W I 513,960 060 $111,416 1%1 ($196153)1 -1%
*Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
FY 2016-17
EmployeesRegular Status YE Actualt
Ljeffp-
Administrative Assistant 1.00 1.00 1.00
Senior Administrative Assistant 1.00 1.00 1.00
Administrative Services Supervisor 0.00 0.00 0.00
Administrative Technician 1.00 2.00 2.00
Collection System Maintenance Scheduler 1
Collection System Operations Division Manager 1.00 1.00 1.00
Construction Equipment Operator 2.00 2.00 2.00
Field Operations Superintendent 1.00 1.00 1.00
Maintenance Crew Leader 17.00 18.00 8.00
Maintenance Crew Member 1/11 18.00 18.00 18.00
Maintenance Supervisor 4.00 4.00 4.00
Senior Engineer 1.00 1.00 1.00
Utility Worker 2.00 2.00 2.00
Vehicle and Equipment Mechanic 3.00 3.00 3.00
Vehicle Maintenance and Equipment Maintenance
Supervisor
k:AIKLAIKIJW::
Total 54.00 56.00 56.00
d Duration EmployeesIFY 2016-17 t t
.A YE Actual
Laborer Summer Student Jr F.00
Clerical Summer Student 1.00 1.00 1.00
Total 3.00 4.00 4.00
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Operations Department—Collection System Operations Division
Significant Budget Modifications
The Collection System Operations Operating Budget for FY 2018-19 is $14.0 million, a $0.2 million or
1% decrease over the $14.2 million budget in FY 2017-18. Salaries & Wages include the agency-wide
cost of living adjustment, offset by an increase in the vacancy factor. Repairs and Maintenance is
decreasing due to the elimination of the cost of bypass pumping by Rain for Rent and transferring the
cost of Verizon Network Fleet to the IT Budget. Outside Services is decreasing due to eliminating the
temporary agency employees used in FY 2017-18.
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Operations Department—Plant Maintenance Division
Plant Maintenance Division
OVERVIEW
This Division is responsible for maintaining all mechanical, electrical, and instrumentation equipment
and systems for the treatment plant, laboratory, and 18 pumping stations as well as all buildings and
grounds at the Martinez campus. The Division also consists of a Reliability Engineering Workgroup
that provides technical support for maintenance planning and manages the Preventative Maintenance
Program, and the Pumping Station Workgroup that operates and maintains the 18 pumping stations.
Fiscal Year 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
Accomplishment
Goal 2— • Maintained all equipment and systems to achieve the National Association
Strive to Meet Regulatory of Clean Water Agencies Peak Performance Platinum Award for the 20th
Requirements consecutive year.
• Received the following California Water Environment Association Awards:
0 2017 Electrical Technician of the Year—Regional Level
0 2017 Mechanical Technician of the Year— Regional and State Level
o Gimmicks and Gadgets—State Level
•Continued to enhance the new Cityworks Computerized Maintenance
Goal 5— Management System for the treatment plant and pumping stations.
Maintain a Reliable •Completed enhancement to the Lubrication Program.
Infrastructure •Continued to develop the Reliability Centered Maintenance Program. This
effort established a framework for Central San to improve maintenance
efficiency and functional reliability of assets.
• Expanded use of condition-based and predictive technologies to identify
potential problems at the treatment plant and pumping stations.
• Implemented the Staff Training and Development Program for the
Mechanical Shop.
• Designed and installed a new primary tank flight monitoring system.
• Installed motor quick disconnects on key treatment plant equipment.
Installed shaft grounding rings on certain motors to minimize premature
motor bearing failure.
• Fabricated a bar screen lifting device to simplify the process of replacing
Goal 6— worn out bar screen grinders.
Embrace Technology, • Designed and fabricated:
Innovation, and o Customized control handles for the Rodder Truck Operators; a device to
Environmental Sustainability assist the Rodder Truck Operators when loading 1,400 feet of coiled rod;
a piping system, water separator, and waste chute for the grit washers;
and bracing and fiberglass platforms for the emergency bypass vaults.
• Redesigned and implemented Furnace No. 2's center shaft drive from a
hydraulic system to a variable frequency drive.
• Installed an Auto Lube System.
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Operations Department—Plant Maintenance Division
Fiscal Year 2018-19 Key Metrics
Safety-prioritized work orders completed on time 100%
Regulatory Title V work orders completed on time 100%
Planned treatment plant preventative maintenance completed Greater than 95%
on time
Planned pump station preventative maintenance completed on Greater than 95%
time
kWh of electricity produced Greater than 18 million kWh per year
(reported as a rolling average)
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Initiative EUM Attribute
Establish opportunities
for internal partnerships
Foster Employee
and cross-divisional Enterprise Resiliency
Engagement and collaborations.
Goal 1 — Interdepartmental Cultivate employees'
Provide Exceptional CollaborationEmployee and
Customer Service and understanding of District Leadership Development,
Maintain an Excellent operations and their role Enterprise Resiliency
Reputation in the in the agency's success.
Community Continue to participate in
Maintain a Strong industry trade Employee and
Reputation in the organizations and apply Leadership Development
Community for certifications and
awards.
Strive to Achieve 100% Actively manage GHG
Permit Compliance in Air, emissions in the most Community Sustainability
Water, Land, and Other cost-effective and
Regulations responsible manner.
Goal 2—
Strive to Meet Re-examine existing
Regulatory Comply with All Federal, Department and
Requirements State, and Local Administrative
Regulations Related to Procedures to ensure Enterprise Resiliency
District Administration compliance with
applicable laws and
regulations.
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Operations Department-Plant Maintenance Division
Initiative EUM Attribute
• .
Goal 3- Re-engineer business
Be a Fiscally processes and complete
Responsible and Manage Costs optimization studies to Operational Optimization,
Effective Wastewater identify opportunities to Enterprise Resiliency
Utility reduce costs and align
with best practices.
Goal 4- Enhance Relationship
Recruit, Develop and with Employees and Cultivate a positive work Employee and
Retain a Highly Trained Bargaining Units culture. Leadership Development
and Safe Workforce
Goal 5- Manage Assets Optimally Continue maintenance on Infrastructure Strategy
Maintain a Reliable throughout Their Lifecycle assets using a reliability- and Performance
Infrastructure based approach.
Goal 6- Encourage the Review Continue developing and
Embrace Technology, and Testing of investing in cost-effective
Innovation and Technology to Optimize innovation, technology, Operational Optimization
Environmental and Modernize Business and applied research and
Sustainability Operations development.
Budget Overview by Expense Category
Account FY 2016-17 FY t i18-19 Budget to Percent Budget
Description Budget •r- . - -d Budget Projected Variance Budget Variance
(Reallocated Variance Variance
wl Plant
Operationsy
Salaries& 55259,306 $5.088.411 $5.501,480 $5.247,506 $5,727.357 $479,857 9% $225,877 4%
Wages
Employee S4.355.893 54,134,911 54,304,142 TS4.058,312 S2,455.560 (S1.602.752) -39% {$1.848.582} -43%
Benefits
Unfunded $0 . $o $0 $0 $1,751.735 $1,751,735 100°/° $1,751,735 106%
Liabilities'
Chemicals 5430,000 $328,092 5300,000_250,000 _$250.000 i $0 0°I° (550.000} -17%
Utilities S518,550 Sfi10,841 $508,1501 5515,750 _3516,550 5_800 0% 58.400 2%
Repairs& 52416,300 $1,916,183 $2,408,300 $2,411,800 $2,528,450 $115,650 5% 3120,150 5%
Maintenance
Hauling& $138,800 $155,247 $158,800 $163,800 $163,800 $o 0% 55,000 3%
Disposal _
Outside 5237.650 $164,987 S257.750 5246,250 $236,200 ($10,050) 4% ($21,550) -8%
Services
Materials& S539.200 $586,753 $559.200 $581.700 5575,200 (56,500) -196 516,060 3%
Supplies
Other 5140,001 $140,913 5140,836 5144.836 $161,611 $16,775 12% $20,775 15%
Expenses _
Total 534.035.700 $13,126,339 : S14,138,658, 513.619,948 S14,366,463 $746,515 6% S227,805 2%
Reallocated
"Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
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Operations Department-Plant Maintenance Division
Personnel Requirements FY
Employees17
Regular Status i
YE Actual
Assistant Engineer 1.00 1.00 1.00
Buildings and Grounds Supervisor 1.00 1.00 1.00
Electrical Shop Supervisor 1.00 1.00 1.00
Electrical Technician 4.00 4.00 4.00
Instrument Shop Supervisor 1.00 1.00 1.00
Instrument Technician 2.00 3.00 3.00
Machinist 2.00 2.00 2.00
Maintenance Crew Leader 1.00 1.00 1.00
Maintenance Planne 3.00 3.00 3.00
Maintenance Technician 1/11, Mechanical 1.00 2.00 2.00
Maintenance Technician III, Mechanical
Mechanical Supervisor 1.00 2.00 2.00
Plant Maintenance Division Manager 1.00 1.00 1.00
lant Maintenance Superintendent
Pumping Stations Operator 1/II 4.00 4.00 4.00
Pumping Stations Operato 2.00 2.00 2.00
Pumping Stations Supervisor 1.00 1.00 1.00
Senior Engineer 1.00 1.00 1.00
Utility Worker 7.00 7.00 7.00
Total 43.00 46.00 46.00
EmployeesLimited Duration FY 17 i YE Actuali
Laborer Summer Student 7.00 10.00 1 11.00
Engineering Assistant Summer Student 1.00 0.00 1.00
Intern MENUM1.0 1.
Total 9.00 11.00 13.00
Significant Budget Modifications
The Plant Maintenance Operating Budget for FY 2018-19 is $14.4 million, a $0.2 million or 2%
increase over the $14.1 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost
of living adjustment and the addition of a General Manager-transitional position for a Maintenance
Technician III, Mechanical. The increase in Repairs &Maintenance relates to outside repairs and
maintenance due to increased work related to Multiple Hearth Furnace work.
The Plant Maintenance Division Budget directly addresses several of the principle issues facing Central
San by optimizing the Maintenance Program to ensure that equipment and system reliability meets all
safety, service level, and regulatory requirements. The Division strives to continuously improve overall
maintenance effectiveness and reliability over the lifecycle of an asset, including active participation in
all phases of design, installation, operation, maintenance, and replacement planning.
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Operations Department—Plant Operations Division
Plant Operations Division
OVERVIEW
This Division operates and maintains Central San's treatment plant in Martinez. The treatment plant has
a permitted capacity of 53.8 million gallons per day (MGD) and treats an average of 44.0 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 2017-18 Accomplishments
This Division had several accomplishments related to the following Central San Goals:
Accomplishment
•The treatment plant received the National Association of Clean Water Agencies Peak
Goal 2— Performance Platinum Award for the 20th consecutive year.
Strive to Meet Assisted with preparations and testing for the new Environmental Protection Agency
Regulatory 129 Sewage Sludge Incinerator Regulations.
Requirements .Worked with the Regulatory Workgroup to ensure the annual anthropogenic
greenhouse gas emissions remained below 25,000 metric tons of carbon dioxide.
• Implemented Cogeneration British Thermal Unit(BTU) control to save energy and
Goal 3— simplify operation.
Be a Fiscally Sound • Extended the life of the Dynac Historian Server that stores all treatment plant
and Effective Water historical data.
Sector Utility . Saved $50,000 by purchasing hardware for the Input/Output Replacement Project at
a discounted rate.
• Improved resiliency against the ultraviolet disinfection bypass events by installing
Goal 6— shutdown-delay timers and enhancing the outlet gate logic.
Embrace • Piloted sludge blanket detectors in the primary sedimentation basins and secondary
Technology, clarifiers.
Innovation, and •Transitioned control of the induced draft fan from an obsolete local controller into the
Environmental modern furnace programmable logic controller.
Sustainability • Enhanced furnace oxygen control by improving automatic rate control of the air ports
for Hearth No. 10.
Fiscal Year 2018-19 Key Metrics
NPDES compliance Zero Violations
Title V compliance Zero Violations
Recycled Water Title 22 compliance Zero Violations
Anthropogenic GHG emissions Less than 25,000 metric tons COze
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
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Operations Department—Plant Operations Division
Fiscal Year 2018-19 Strategic Initiatives
This Division will support the following Central San Goals and Strategies:
Initiative EUM Attribute
Establish opportunities for
internal partnerships and
Foster Employee
cross-divisional Enterprise Resiliency
Goal 1 — Engagement and collaborations.
Provide Exceptional Interdepartmental Cultivate employees'
Customer Service and Collaboration understanding of District Employee and
Maintain an Excellent operations and their role in Leadership Development,
Reputation in the the agency's success. Enterprise Resiliency
Community
Maintain a Strong Continue to participate in
Reputation in the industry trade organizations Employee and
Community and apply for certifications Leadership Development
and awards.
Meet existing regulations. Product Quality
Actively manage GHG
emissions in the most cost- Community Sustainability
Goal 2— Strive to Achieve 100% effective and responsible
Strive to Meet Permit Compliance in manner.
Regulatory Air, Water, Land, and Re-examine existing
Requirements Other Regulations Department and
Administrative Procedures Enterprise Resiliency
to ensure compliance with
applicable laws and
regulations.
Goal 3— Re-engineer business
Be a Fiscally processes and complete
Responsible and Manage Costs optimization studies to Operational Optimization,
Effective Wastewater identify opportunities to Enterprise Resiliency
Utility reduce costs and align with
best practices.
Goal 4— Enhance Relationship positive work Employee
Recruit, Develop, and with Employees and Cultivate a p and
Retain a Highly Trained Bargaining Units culture. Leadership Development
and Safe Workforce
Goal 6— Encourage the Review Continue developing and
Embrace Technology, and Testing of investing in cost-effective
Innovation, and Technology to Optimize innovation, technology, and Operational Optimization
Environmental and Modernize applied research and
Sustainability Business Operations development.
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Operations Department-Plant Operations Division
Budget Overview by Expense Category
Account FY 2016-17 FY i r i2018-19 Budget to Percent Budget to Percent
Description Budget ..- Projected ■t- Projected Budget Vanance
(Reallocated Variance Variance
wl Plant
Salaries& $5,161,486 $5,186,179 $5,391,494 $5,621,700 $5,317,180 [5304,524] -5% (S74,314Y -1%
Wages - -
Emp[oyee $4,001,927 $4,154,327 $3,793,932 $3,821,078` $2,031,456 ($1,789,622) -47% (S1.762,476) -46%
Benefits _
Unfunded 50 50 So $0 $1.538.428 $1,538,428 100% $1,538,428 100%
Liabilities.
Chemicals $1,406,000 $1,048,350 $1,098.000_ S1.052.000 S1.125,000 $73,000 �7% $27,000 2%
Utilities $3,210,700 $3,416,933 $3,484,600 53.121.800 $3,002.6DO $119,200) 4% ($482,000) -14%
Repairs& $50,200 $41,349 $4,2001 511,000 $4,200 ($6,800) -62% 50 0%
Maintenance
Hauling& $238,000 $230,207 $249,000 $248,000 $283,004 $35,000 14%. $34,000 14%
17ispasal
Professional& $4,000 $3,422 $4,000 1 $1,000 $1,000 $0 0% ($3,000) -75%
Legal Services
Outside 574,000 $21,556 $42,000 53,000 $22,004 519,000 633% ($20,000)��48%
Sennces
Materials& S152,900 $135,994 $147,900 $137,400 $144,900 $7,500 5°/0 {531000}; -2%
Supplies
Other I $560,632 $463,868 5671,850 5617,602 $662,200 $44,598 7%. ($9,650) -1%
Expenses
Total $14,859,845 $14,700,185 $14,886,978 $14,634,580 $14,131,964 ($542,616) -3% ($755,012) -5%
Reallocated
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
Regular Status . .yees IFY r16-17
Actualr r
YE
Administrative Assistant 2.00 2.00 2.00
Administrative Services Supervisor 1.00 1.00 1.00
Associate Control Systems Engineer 0.00 0.00 0.00
Control Systems Engineer 1.00 2.00 2.00
Control Systems Technician 1.00 1.00 1.00
Deputy General Manager 1.00 1.00 1.00
Plant Operations Division Manager 1.00 1.00 1.00
Plant Operations Superintendent 1.00 1.00 1.00
Plant Operations Training Coordinator A.111111111111111111 1.00 1.00
Plant Operator 1/11 2.00 2.00 4.00
lant Operator III 1.00
Senior Engineer 1.00 1.00 1.00
Senior Plant Operator 13.00 14.00 16.00
Shift Supervisor 7.00 7.00 7.00
Total 37.00 39.00 39.00
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Operations Department—Plant Operations Division
Limited Duration Employees
FY 1 IFY 12018-19
YE Actual
Summer Engineering Assistant 0.00 0.00 1.00
Total 0.00 0.00 1.00
Significant Budget Modifications
The Plant Operations Operating Budget for FY 2018-19 is $14.1 million, a $0.8 million or 5% decrease
over the $14.9 million budgeted in FY 2017-18. Salaries &Wages include the agency-wide cost of
living adjustment offset by reductions due to staff turnover and lower costs for new employees. A
General Manager-transitional position for a Control Systems Engineer continues to be filled and
budgeted in FY 2018-19. Utilities are decreasing due to improvements to the Cogeneration System that
lowers the need to import from Pacific Gas and Electric. Other reductions are due to the lower cost of
pre-purchased natural gas for FY 2018-19 that also lowers the cost of landfill gas, which is priced
proportionally to natural gas. The increase in Hauling& Disposal is due to the commission of the new
screens at the headworks (screenings are now removed from the flow and are hauled to the landfill).
The decrease in Outside Services is due to lower than expected technical services expenses for training.
This Plant Operations Budget, flat overall from the current fiscal year to next fiscal year,provides
Central San staff the resources necessary to continue to meet or exceed our evolving regulatory
requirements and optimized operations to address the public's concerns regarding increased sewer
service rates.
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Operations Department—Safety Program
Safety Program
OVERVIEW
The Safety Workgroup oversees and administers the 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 2017-18 Accomplishments
This Program had several accomplishments related to the following Central San Goals:
Accomplishment
Goal 4— . Conducted 120 hours of classroom training over 81 training sessions on
Develop and Retain a Highly 35 safety training subjects and completed 322 Safety Tailgates.
Trained and Innovative Recipient of the 2017 California Water Environment Association's
Workforce Statewide—Safety Plant of the Year Award.
Goal 5— •Worked closely with the Capital Projects Division to provide design
Maintain a Reliable reviews, submittal reviews, contractor orientations, and construction safety
Infrastructure oversight.
• Completed 111 Safety Work Orders.
• Removed over 221 tons of hazardous waste.
Goal 6— • Implemented online access to safety data sheets through
Embrace Technology, MSDSonline.com.
Innovation, and • Implemented iAuditor application to allow safety inspections to be
Environmental Sustainability conducted via cellphone or tablet.
• Updated and serialized Safety Directive Manuals and instituted paperless
online access.
Fiscal Year 2018-19 Key Metrics
Employee injury and illness lost time incident rate less than
2016 Bureau of Labor Statistics' California Sewage Treatment Less than 6.8%
Facilities Rate
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
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Operations Department—Safety Program
Fiscal Year 2018-19 Strategic Initiatives
This Program will support the following Central San Goals and Strategies:
Initiative EUM Attribute
Establish opportunities
for internal partnerships Enterprise Resiliency
Foster Employee and cross-divisional
Engagement and collaborations.
Goal 1 — Interdepartmental Cultivate employees'
Provide Exceptional CollaborationEmployee and
Customer Service and understanding of District Leadership Development,
Maintain an Excellent operations and their role Enterprise Resiliency
Reputation in the in the agency's success.
Community Continue to participate in
Maintain a Strong industry trade Employee and
Reputation in the organizations and apply Leadership Development
Community for certifications and
awards.
Re-examine existing
Goal 2— Comply with All Federal, Department and
Strive to Meet State, and Local Administrative
Regulatory Regulations Related to Procedures to ensure Enterprise Resiliency
Requirements District Administration compliance with
applicable laws and
regulations.
Re-engineer business
Goal 3— processes and complete
Be a Fiscally optimization studies to Operational Optimization,
Responsible and Manage Costs identify opportunities to Enterprise Resiliency
Effective Wastewater reduce costs and align
Utility with best practices.
Enhance Relationship Cultivate a positive work Employee and
with Employees and culture. Leadership Development
Bargaining Units
Goal 4— Achieve consistent
Recruit, Develop, and improvement on State of Employee and
Retain a Highly Trained California and Bay Area Leadership Development
and Safe Workforce Meet or Exceed Industry industry injury rate.
Safety Standards Enhance the safety
culture through improved Employee and
training and Leadership Development
communications.
Enhance capability to
mitigate, prepare for, Enterprise Resiliency
respond to, and recover
Goal 5— Protect District Personnel from emergencies.
Maintain a Reliable and Assets from Threats Evaluate and implement
Infrastructure and Emergencies appropriate
improvements to the Enterprise Resiliency
Security Program to meet
new or evolving threats.
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Operations Department-Safety Program
IEUM Attribute
Goal 6- Encourage the Review Continue developing and
Embrace Technology, and Testing of investing in cost-effective Operational Optimization
Innovation, and Technology to Optimize innovation, technology,
Environmental and Modernize Business and applied research and
Sustainability Operations development.
Budget Overviewby Expense Catego
Account FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FY i18-19 Budget to Percent Budget
BudgetDescription Budget Actual Projected Budget
Variance Variance
Salaries& $349,884 $364,506 5384,050 $315,600 $353,959 538,959 92% [$10,091] -3%
Wages _ __
Employee 5312,759 $337,448 $317,020 $294,917 $141,539 {$153,378}- -52% ($175,481) -55%
Benefits _
Unfunded $o $Q $6 so $209,464 $209,464 100%' $209,464 100%
Liabilities.
Chemicals $0 30 $0 s0 $0 $0 0% s0 0%
Utilities so $0 ! s0 $o $0 0% s0 0%
Repairs& $71.400 $60,465 $73,500 573.500 $74,700 $1,200 2% $1.200 2%
Maintenance
Hauling& $10,250 $9,705 $10,250 $10,250 510,250 $0 0% s0 0%
Disposal I _
Professional& $2,500 $o $2,500 $2,500 $2,500 $o 0% s0 0%
Legal Services
Outside $87,000 526,651 $68,000 $65,500 $61,000 {$4,500} -7% ($7,000) -10%
Services
materials& $34,500 $30,033 $27,500 $28,500 I $28,100 ($400) -1% $600 2%
Supplies
Qther $45,575 343,122 554.075 $53.100 $56,600 $3,500 7% $2,525 5%
E.apenses
Totaii $913,468 $871,929 $916,895 $843,2671 $938,112 364,845 11% $21,217 2%
*Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
Regular Status
IFY t .
. . t
YE Actual
Operations Safety Specialist 2.00 1 2.00 2.00
Safety Officer 1.00 1.00 1.00
Total 3.00 3.00 3.00
Significant Budget Modifications
The Safety Program Operating Budget for FY 2018-19 is $0.9 million, which remained flat compared to
the $0.9 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of living
adjustment offset by reductions due to staff turnover and lower costs for a new employee. There are
only minor adjustments to other expense categories.
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Operations Department—Recycled Water Program
Recycled Water Program
OVERVIEW
The Recycled Water Program is a reflection of Central San's continued efforts to utilize the valuable
resources available in treated wastewater and to augment the region's water supply. Central San began
to separately track the Recycled Water Program financials in FY 2016-17, so staff continues to work to
accurately budget the anticipated expenses and revenues. This Program draws resources from several
Divisions to provide support for the production and distribution of recycled water to Zone 1 commercial
and municipal customers, construction contractors, and residential customers through the Residential
Fill Station. This Program also includes planning and regulatory support for the existing system and
planned expansions, including the Satellite Water Recycling Facility (SWRF)program.
Fiscal Year 2017-18 Accomplishments
This Program had several accomplishments related to the following Central San Goal:
Accomplishment
• Executed a Memorandum of Understanding with the Contra Costa Water
District and Santa Clara Valley Water District to complete a preliminary
feasibility evaluation of the Refinery Recycled Water Exchange Project.
•Continued supporting development of the Diablo Country Club's
0.4 MGD SWRF Demonstration Project: including completing the CEQA
Goal 6— Initial Study, holding two Open House Community Input Meetings, and
Embrace Technology, supporting Diablo Country Club's Design-Build procurement process.
Innovation, and •Continued operating the Residential Fill Station, which served over 8,969
Environmental Sustainability customers and delivered 1.94 million gallons of recycled water(as of May
21, 2018w).
•Connected new businesses to the recycled water distribution system for
landscape irrigation, including "The Veranda"development in Concord.
•Continued pursuit of grant funding for existing and planned projects, as
part of the Western Recycled Water Coalition.
Fiscal Year 2018-19 Key Metrics
Recycled Water Title 22 compliance Zero Violations
Gallons of recycled water distributed to external customers Greater than 240 million gallons per
year
Operating expenditures as a percentage of operating budget Greater than 95%
Performance evaluations completed on time 100%
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Operations Department—Recycled Water Program
Fiscal Year 2018-19 Strategic Initiatives
This Program will support the following Central San Goals and Strategies:
Initiative EUM Attribute
Goal 1 — Build Customer Provide high-quality
Relationships and customer service. Customer Satisfaction
Provide Exceptional Awareness
Customer Service and
Maintain an Excellent Foster Employee Establish opportunities for
Reputation in the Engagement and internal partnerships and Enterprise Resiliency
Community Interdepartmental cross-divisional
Collaboration collaborations.
Meet existing regulations
Strive to Achieve 100% and plan for future Product Quality
Permit Compliance in Air, regulations.
Water, Land, and Other Stakeholder
Goal 2— Regulations Foster relationships with Understanding and
Strive to Meet regulatory agencies. Support
Regulatory
Requirements Re-examine existing
Comply with All Federal, Department and
State, and Local Administrative Procedures Enterprise Resiliency
Regulations Related to to ensure compliance with
District Administration applicable laws and
regulations.
Develop alternatives for
Conduct Long-Range new revenues and funding
Financial Planning sources (i.e. interagency Financial Viability
Goal 3— agreements, services, and
Be a Fiscally recycled water).
Responsible and Re-engineer business
Effective Wastewater processes and complete
Utility optimization studies to Operational Optimization,
Manage Costs identify opportunities to Enterprise Resiliency
reduce costs and align
with best practices.
Explore partnering Water Resource
opportunities. Sustainability, Community
Sustainability
Continue to support the
development of a Water Resource
Augment the Region's demonstration Satellite Sustainability, Community
Water Supply Water Recycling Facility at Sustainability
Goal 6— pp y Diablo Country Club.
Embrace Technology,
Innovation, and Continue to provide Customer Service
Environmental recycled water to
Sustainabilityresidents and businesses; Satisfaction,
Water Resource
evaluate and process new
customer requests. Sustainability
Encourage the Review Continue developing and
and Testing of investing in cost-effective
Technology to Optimize innovation, technology, Operational Optimization
and Modernize Business and applied research and
Operations development.
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Operations Department-Recycled Water Program
Budget Overview by Expense Category
Treatment
Account IFY 2016-17 IFY I I I18-19 Budget to Percent Budget
Description Budget Actual Budget Projected Budget Projected Variance Budget Vanarce
VaTiance Variance
Salaries& S274,733 $193,469 5228,440 5168,400 $225,100 $56,700 34% (53,340)' -1%
Wages
Employee $200,402 3187.888 $239,5801 $171,800 $213,900 $42,100 25% {$17,680} -8%
Benefits
Unfunded $0 SO $0 $0 $0 $0 0%1 SO 00A
Liabilities
Chemicals 584,000 $51,648 $84,000 $77,600 584,000 $6_,400 8% 50 0%
_utilities 5175,000 $191.526 5175,000 5175.000 5175,000 $0 0%. 50 096
Repairs& $6,300 31.842 $6,000 53:000 $6,000 $3,000 100% s0 0%
Maintenance
Hauling& 50 50 SO s0 30 S6 0% 5o 0%
Disposal
Professional& $0 SO $0 SO $0 $0 0% 50 0%
Legal Services
Outside $0 30 $500 $500 $500 $0 0% 3Q 0%
Services _
Materials&_ 51,003 $4,696 51,000 $1.000 $1,000 $0 0% So 0%
Supplies
Other $0 $0 $6,800 $6.600 $6,600 $0 0% $0 01%
Expenses
Total S741438 5631,069 $733,120 S603.900 S712.100 $108,200 1896 (S21,020) 396
Distribution
(including Distribution, Residential Fill, SWRF, Refinery ReW Exchange)
Account IFY 2016-17 IFY I I2018-19 Budget to Percent Budget to Percent
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& S488,414 $169,463 $188,650I $249,980 5340,500 590,520 38% $151,850 80%
Wages _
Employee $276,746 $70,639 $102,948 $180,465' $211,344 $30,879 17% $108,396 105%
Benefits
unfunded 50 50 So so $0 Sv 0% so 0%
Liabilities'
Chemicals 5o SO 5o $0 So 5o 0% 50 0%
Utilities s0 $0 $0 $0 50 500% S6 0%
Repairs& $23.700 $0 $23,000 $10,000 $23.000 Si3.000 13D%6 $0 0%
Maintenance
Hauling& So $0 SO SO so $0 0% $0 0%
Disposal
Professional& $14,000 $36,275 $14,000 $1,500 $14,000 $12,500 833% $0 0%
Legal Services
Outside 5202,500 528,877 5202,000 5127,500 $214,000 586,500 68% $12,000 6%
Services
Materials& $4,897 $47 $4,900 $4,550 $10,900 $6,350 140%1 $6,000 122%
Supplies
Other $50,024 $34,269 $%Q024 $50,060 $26,950 ($23,110) -46% {523,074} 46%
Expenses
Total 51,060,281 . 5339,569 5585,522 5624,055 5840,694 $216,639 35%. S255,172 44%
*Unfunded Liabilities are included in the Employee Benefits line item for Recycled Water.
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Operations Department—Recycled Water Program
Total Recycled Water
AccWt FY 2016-17 FY t i18-19 Budget to Percent Budget
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Total Rec Water $1,801,719 $970,638 51:318,642 $1,227,955 $1,552,794 $324,839 26% $234,152 18%
Expenses ,_ i
Personnel Requirements
Several Divisions support the Recycled Water Program. Personnel for the Recycled Water Program are
shown in their respective Divisions and total 2.68 full time equivalents. A portion of their labor costs, as
appropriate to their time spent on the Program, are included in the Recycled Water Budget. In addition,
the Budget includes funding for three temporary staff to operate the Residential Fill Station and one
intern to support recycled water planning.
EmployeesRegular Status FY 2016-17 1
YE Actual
Program Manager 0.35 0.50 0.50
Engineering and Technical Services Department Staff 0.75 0.70 0.85
Operations Department Staff 95 1.15 1.33
Total 2.05 2.35 2.68
FY 2016-17 1
YE Actual
Fill Station Temporary 3.00 8.00 3.00
Intern 0.00 0.00 1.00
Total 3.00 8.00 4.00
Significant Budget Modifications
The Recycled Water Program Operating Budget for FY 2018-19 is $1.6 million, a$0.2 million or 18%
increase over the $1.3 million budget in FY 2017-18. Salaries &Wages include the agency-wide cost of
living adjustment, plus increased labor costs for Distribution, Residential Fill, and SWRF sub-programs.
These increases are a result of additional staff anticipated to be working on recycled water in FY 2018-
19, due to expected continued demand for the Residential Fill Station. In FY 2018-19, the Residential
Fill Station Program will be fully staffed and budgeted with three temporary employees, compared to a
straight budget amount of$65,000 in FY 2017-18. The Recycled Water Program helps Central San
address several of the challenges presented by the environment in which it operates. These challenges
include the need for all water sector agencies in the and west to play a role in maintaining a sustainable
water supply, with recent drought experiences, and the continuing effects of climate change. The
Program also addresses the increased focus on resource recovery in the wastewater industry.
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Operations Department-Recycled Water Program
Financial Summary for Recycled Water Program
Budgetto
Budget Percent
Recyled Water Expense Summary IFY 2016-17 Actual FY 2017-18 .•_ Budget
Treatment Plant O&M $631,069 1 $733,120 1 $603,900 1 $712,100 1 ($21,020) -3%
Treatment Plant Capital $275,405 $330,000 $1,630,000 $2,757,000 $2,427,000 735%
Distribution O&M $339,569 $585,522 $624,055 $840,694 $255,172 4496
Distribution Capital $326,550 $130,000 $45,000 $100,000 ($30,000) -23%
Total Combined Expense $1,572,593 $1,778,642 $2,902,955 $4,409,794 $2,631,152 753%
Budgetto
Budget Percent
Recyled Water Revenue Summary IFY 2016-17 Actual ._• Budget Variance Variance
Treatment Plant(Value not charged) $437,565 $463,411 $1,001,947 $1,455,207 $991,795 214%
Zone 1 Revenue $386,709 $373,500 $377,000 $420,000 $46,500 12%
Residential Fill(Value not charged) $219,751 $83,779 $139,132 $232,185 $148,406 177%
Satellite Reimbursement $92,800 $141,900 $32,242 $81,700 ($60,200) -42%
City of Concord Reimbursement $520,882 $404,237 $868,183 $1,289,671 $885,434 219%
Total Combined Revenue $1,657,707 $1,466,828 $2,418,504 $3,478,763 $2,011,935 580%
Regarding the FY 2018-19 budget Revenue figures noted above, the $420,000 Zone 1 Revenue is
entirely allocated to O&M (See Table 5 in Financial Summary). The $1,289,671 City of Concord
Reimbursement is contained within the $14,800,000 for O&M (See Table 5 in Financial Summary) and
$7,150,000 for Capital (see Table 11 in Financial Summary). The $81,700 Satellite Reimbursement is
contained within the $333,000 Other Revenues (see Table 5 in Financial Summary).
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Self-Insurance Program
Self-Insurance Program
Central San 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). Central San 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, Central San 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, Central San 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, Central San restructured the SIF into three sub-funds. Each of the three
sub-funds was established to pay for specific losses and expenses. In FY 2015-16, sub-fund B was
retired and funds for its risks were transferred to sub-fund C.
Table 1 presents a recent financial history and projection of the SIF and shows the FY 2018-19 SIF
budget. The SIF revenue for FY 2018-19 is projected to be $960,250, and expenses are projected to be
$924,500, resulting in net SIF reserves of$6,735,776. The budgeted revenues include the allocation of
$779,500 from the FY 2018-19 O&M Budget to the SIF.
Sub-Fund A: Actuarially-Based Risks
Sub-Fund A is used to pay claims and expenses within Central San'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. Central San obtained an actuarial review of its self-insured general liability and automobile
liability risks in October 2016. The next actuarial report will be performed in August 2018 using loss
data through June 30, 2018.
The Board established a policy to maintain the Sub-Fund A reserve at three times the amount of Central
San'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 2018-19 of$26,712 with expenses of$345,000, for a decrease
of$318,288. This amount will be transferred from Sub-Fund C in order to maintain the minimum
reserve at$1.5 million.
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Self-Insurance Program
Sub-Fund B: Non-Actuarially-Based Risks
Sub-Fund B has been retired and all reserves for these risks were transferred to Sub-Fund C in
FY 2015-16.
Sub-Fund C: Non-GASB-10 Risks
This Sub-Fund C 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 3 shows budgeted revenue for FY 2018-19 of$933,538, which includes a transfer from the O&M
Fund.
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Self-Insurance Program
Tables and Figures
Table 1 - Self Insurance Fund (SIF) Summary Overview
I FY 2016-17 FY 2017-18 FY 2017-18 FY
•
Account Description Actual Budget Projected Budget
Revenues:
SIF Allocation from O&M Fund $920,000 $585,000 $585,000 $779,500
Insurance Allocation from HHW $21,674 $75,000 $62,500 $65,000
Subrogation Recovery $56,226 $0 $1,440 $0
Interest Income $461792 $67,000 $85,777 $115,750
Total Revenue $1,044,692 $727,000 $734,717 $960,250
Expenditures:
Claims Adjusting $0 $0 $0 $0
Insurance Consulting $0 $0 $0 $6,500
Loss Payments $68,258 $265,000 $88,000 $253,000
Losses:Audit adjustment for GASB 10 ($192,921) $0 $0 $0
Legal Services $2,736 $21,500 $2,500 $20,000
Technical Services $267,691 $75,000 $50,000 $75,000
Insurance Premiums $552,029 $575,000 $540,000 t
$570,000
Total Expenses $697,793 $936,500 $680,500 $924,500
E W_Revenue Over Expense $346,899 ($209,500) $54,217 $35,750
Projected Reserves *:
Beginning of Year $6,298,910 $6,714,380 $6,645,809 $6,700,026
Reserve Policy Transfer $0 $0 $0 $0
Revenue over Expense $346,899 1 ($209,500) $54,217 1 $35,750
End of Year Projected Reserves $6,645,809 $6,504,880 $6,700,026 $6,735,776
Allocated Reserves:
Actuarial Reserves-GASB 10(Fund A) $1,500,000 $1,500,000 $1,500,000 $1,500,000
Non-Actuarial Reserves-GASB 10 $5,145,809 $5,004,879 $5,200,026 $5,235,776
(Fun - -
Total Allocated Reserves $6,645,809 $6,504,880 $6,700,026 $6,735,776
*Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting.
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Self-Insurance Program
Table 2 - SIF - Sub-Fund A
FY 2016-17 IFY 2017-18 FY F 0 :
Account Description Actual Budget Projected Budge
Projected Reserves-Beginning of Year $1,500,000 $1,500,000 $1,500,000 $1,500,000
Revenues:
O&M So $0 $0 $0
Subrogation Recovery T $0 $0 $0 $0
Interest $10,832 $15,462 $19,785 $26,712
Total Revenue $10,832 $15,462 $19,7951 $26,712
Expenses:
Losses $65,701 $250,000 $85,000 $250,000
Losses:Audit adjustment for GASB 10 ($192,921) $0 $0 $0
Legal Services $1,034 $20,004, $2.500 $20,000,
Technical $79,843 $75,0001 $50,0001 $75,000
Total Expenses ($46,337) $345.0001 $137.500 $345,000
Revenue Over Expense 1 $57,169 [$329,538] ($117,715) ($318,288)
Pro ected Reserves':
....................
Transfer(to)/from Sub-Fund C ($57,169) $329,538 $117,715 $318,288
Reserve increase transfer from Fund C $0 $0 $0 $0
Total Reserves Projected End of Yearl siswowl $1,5wowl $1.500.000 $1,500,000
Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting.
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Self-Insurance Program
Table 3 - SIF - Sub-Fund C
FY 2016-17 FY 2017-18 FY 2017-18 FY •
Account Description Actual Budget Projected Budget
Beginning Reserves $4,798,910 $5,214,379 $5,145,8091 $5,200,026
Revenues: M A r
O&M $920,000 $585,000 $585,000 $779,500
Subrogation Recovery $56,226 $0 $1,440 $0
Insurance Recovery from HHW Partners $21,674 $75,000 $62,500 $65,000
Interest $35,960 $51,538 $65,992 $89,038
Total Revenue $1,033,860 $711,538 $714,932 $933,538
Expenses:
Losses $2,551 $15,000 $3,000 $3,000
Legal $1,702 $1,500 $0 $0
Technical $187,849 $0 $0 $0
Insurance Premiums $552,028 $575,000 $540,000 $570,000
Insurance Consulting Services $0 $0 $0 $6,500
Claims Adjustment $0 $0 $0 $0
Total Expenses $744,1301 $592,5001 $543,000 $579,500
Revenue Over Expense $289,730 $120,038 $171,932 $354,038
Projected Reserves:
Transfer(to)/from Sub-Fund A $571169 ($329,538) ($117,715) ($318,288)
Transfer(to)/from Sub-Fund B $0 $0 $0 $0
Reserve Increase to Sub-Fund A $0 $0 $0 $0
Reserve Policy Transfers $0 $0 $0 $0
Total Reserves Projected End of Yearl $5,145,809 1 $5,004,879 1 $5,200,026 1 $5,235,776
* Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting.
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Self-Insurance Program
Figure 1 - History of Revenue, Expense, and Reserve Balance
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000 101
. il . . I 1
$0
FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19
Actual Budget Projected Budget
■ Total Revenue ■Total Expenses ■ Total Reserves Projected End of Year
Figure 2 - History of Loss Payment and Insurance Premiums
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000 ■ .
$0
FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19
Actual Budget Projected Budget
■ Loss Payments ■ Insurance Premiums
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Self-Insurance Program
Figure 3 - Reserves by Sub-Fund
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19
Actual Budget Projected Budget
Allocated Reserves -GASB 10 (Fund A)
■Allocated Reserves -GASB 10 (Fund C)
Figure 4 - History of Reserves
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FY 2016-17 FY 2017-18 FY 2017-18 FY 2018-19
Actual Budget Projected Budget
■Allocated Reserves -GASB 10 (Fund C)
Allocated Reserves -GASB 10 (Fund A)
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Self-Insurance Program
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Capital Improvement Program—Summary
Capital Improvement Program
Overview
Central San funds an extensive Capital Improvement Program designed to preserve, maintain, and
enhance Central San'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 Central San's fixed assets (pipelines,buildings, facilities, and equipment) or
significantly extend their useful life.
Capital Expenditures Definition
Capital expenditures are cash outlays by Central San that result in the acquisition or construction of a
capital asset. A capital asset is any asset of significant value, over $5,000, that has a useful life
expectancy of one year or more. Examples of capital assets include treatment plant renovations,
collection system sewer replacements, equipment replacements, vehicle acquisitions, buildings, and
land. Land is always considered a capital asset, regardless of value. All capital assets and improvements
acquired or constructed are included in the Capital Improvement Program.
Capital Program Process
Annually, Central San updates its Ten-Year Capital Improvement Plan (CIP). The CIP identifies and
prioritizes capital projects needed to accomplish Central San's Strategic Plan and provides the basis for
project scheduling, staffing, and long-range financial planning. The CIP also serves as the framework
for rate setting and decisions based on planned expenditures. The CIP undergoes several levels of review
by Central San as detailed in the Ten-Year CIP Section. Once a project is determined to be necessary,
based on operational or maintenance needs or condition of the existing asset, the project is listed in the
Capital Improvement Budget(CIB). In addition, new or rescheduled projects may occur during any
given year due to urgent requirements or unforeseen circumstances. These projects are referred to as
contingency projects and are included in the CIB as needed.
The CIB provides a detailed presentation of the estimated capital expenditures for the first year of the
CIP beginning on July I and ending on June 30, referred to as a fiscal year. Since the majority of capital
projects take longer than a year to complete, future years are presented and estimated to predict the
potential budget appropriation for the current projects. The CIB includes expenditures for the planning,
design, and construction of capital projects and is categorized in four programs: Collection System;
Treatment Plant; General Improvements; and Recycled Water. All CIB projects are reviewed and
prioritized yearly, especially as projects are refined during the predesign phase which include
comprehensive condition assessments. The CIB also includes two types of contingency funding of
capital projects, which provide for project contingency determined at the time of award of any project
and CIB contingency. The CIB contingency can be used in any program and is intended to cover
contingency projects and potential budget overruns. By adopting the CIB,the Board authorizes staff to
pursue work on the identified projects in all four programs with firm individual project budgets. In
addition, any previously approved budget may carry forward to the current fiscal year. Staff reports to
the Board the final CIB expenditures after the end of each fiscal year.
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Capital Improvement Program-Summary
Capital Revenue
The Capital Program is funded by the Sewer Construction Fund's fees and charges listed below which
are discussed in detail in the Financial Summary.
• Capacity Fees • Interest
• Pumped Zone Fees • Sewer Service Charges
• Property Taxes • Reimbursement from Others
While Central San generally follows a pay-as-you-go philosophy, Sewer Service Charge rate increases
can be mitigated by utilizing bond funding to spread the payment over time.
CIB Project Prioritization
The projects included in the FY 2018-19 CIB have been prioritized to ensure the best use of available
and approved funds. Each project was evaluated using a prioritization scoring system that includes input
from stakeholders within the Operations and Engineering Departments. The prioritization scoring
system uses existing Central San prioritization strategies, including guidelines developed by the Water
Environment& Reuse Foundation and prioritization procedures from the National Association of Clean
Water Agencies member agencies.
Each project is assigned a priority ranking of Critical,Very High,High, or Medium based on the
project's score. The criteria used to develop the scores take into consideration the "triple bottom line
plus," or social, environmental, financial, and technical benefits of the project and their applicability to
Central San's Vision, Mission, and Values. New projects that were identified as part of the
Comprehensive Wastewater Master Plan were prioritized through discussions and workshops with
Central San staff. Criteria fell into three categories: 1) Essential Commitments; 2) Project Benefits; and
3) Operational Reliability, as summarized below:
Criteria Category: Essential Commitments d
Complies with Regulatory Requirements and Mandates
Meets Commitment with Outside Agency or Existing Contract
Reduces Potential Health or Safety Hazards
Implements Board of Directors' Policy/Priority
Increases Capacity to Meet Projected Build-out
Category:Criteria
Impacts 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
Category:Criteria Operational Reliability
Consistent with Asset Management Program
Improves Reliability and System Performance
Improves Facility-Wide Resiliency
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Capital Improvement Program—Summary
FY 2017-18 Accomplishments
• Pleasant Hill- Grayson Creek Trunk Sewer Project: This project started construction activities in
June 2016 and installed approximately 10,000 feet of 18-inch to 24-inch diameter trunk sewers and
abandoned several sewers along Grayson Creek. The new sewers provide a backbone system enabling
future replacement of the 60-plus-year-old residential sewers in the Gregory Gardens neighborhoods.
Construction occurred within residential neighborhoods along Westover Drive and Pleasant Hill Road.
The Notice of Completion for the project was issued on December 12, 2017.
i
Luk
Sewer Installation in Pleasant Hill Using Pilot-Tube Boring
• Renovation Projects in the Cities of Lafayette, Martinez, Orinda, and Walnut Creek: Several
projects have replaced or rehabilitated approximately 28,000 feet(5.3 miles) of sewers, most of which
were old 6-inch vitrified clay pipes. Construction included sewer replacement, new manholes, and
other infrastructure improvements in public right-of-way and back yard easements. Trenchless
technology was utilized where possible for cost effectiveness and to minimize construction impacts.
Central San staff also designed and bid approximately 36,500 feet(6.9 miles) of sewer replacement
this fiscal year.
;s
a-
Sewer Replacement in a Residential Neighborhood
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Capital Improvement Program—Summary
• Headworks Screening Upgrade Project: This project will remove the screenings and plastics from
the influent wastewater. Removal and disposal of screenings will protect downstream facilities,
extend equipment life, and reduce maintenance of process water equipment. The project is 70 percent
complete. The contractor has installed two of the four new multi-rake bar screens, the
washer/compactors and the screening disposal facility. Final completion is expected by
December 2018.
12 ,• 2017
Removal of Screen Materials
New Screens Installed for the at the Headworks
Headworks Screening Upgrades Project
• Pump and Blower Building Seismic Project: This project seismically updated the Pump and Blower
Building to current structural and building code standards. The building houses the primary and final
effluent pumps, and electrical and mechanical systems required to operate the entire treatment plant.
The project is substantially complete and will be accepted and closed in FY 2018-19.
K.
Pump and Blower Building Seismic Upgrade Project Construction
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Capital Improvement Program—Summary
• Wet Scrubber Pilot on Furnace Emissions: The Wet Scrubber Pilot was conducted in 2017 and
validated new scrubber technology by testing scrubber performance. The pilot allowed staff to gain
valuable operations experience and confirmed design criteria for air and liquid streams under the
Solids Handling Facility Improvements Project.
P3 VON
Wet Scrubber Pilot Team
• Predesign of the Pumping Station Upgrades: The completed predesign has identified
recommendations for the final design of the Moraga, Orinda Crossroads, and Flush Kleen Pumping
Stations. Planning efforts for the Martinez, Maltby, and Fairview Pumping Stations will continue into
next fiscal year.
Orinda Crossroads Pumping Station
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Capital Improvement Program—Summary
• Predesign of the Solids Handling Facility Improvements: The completed predesign has identified
solutions to rehabilitate and replace the sludge dewatering, sludge handling, sludge blending, and ash
handling systems; furnace air pollution control equipment; and structural upgrades to the building
housing this equipment.
ORIN
'7. -
Op
am
�� • r
3-D Model Rendition of the Solids Handling Facility Improvement Project
FY 2018-19 CIB
The FY 2018-19 CIB for ongoing and rescheduled projects is $45.3 million. The estimated budget
needed to complete these projects in future fiscal years is estimated at $307.3 million. Combined, the
total estimated budget to complete the identified projects in the FY 2018-19 CIB is $352.6 million. The
2018 Ten-Year CIP is projected to be $805.7 million as in Table 1:
Table 1: FY 2018-19 CIB per Program
--cuture FYs Under Total Estimated
_,ctive 2018-19 CIB Budget to IFY 2018
rojects
.. Complete Active Ten Year CIP
p (2) Projects
I.. .n
ollection System $19,347,000 $109,085,540 $128,432,540 $308,958,000
Treatment Plant $16,865,000 $158,460,500 $175,325,500 $428,207,000
General Improvements $4,750,000 $11,418,800 $16,168,800 $25,432,000
Recycled Water $2,857,000 $20,387,500 $23,244,500 $23,675,000
Contingency $1,500,000 $8,000,00019$9,500,000 $19,500,000
Totals: $45,319,000* $307,352,340* $352,671,340 $805,772,000
*Approval of FY 2018-19 projects may commit approximately$31.2 million in future fiscal years. For additional
information on proposed yearly budgets,please reference the 2018 Ten-Year CIP Section.
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Capital Improvement Program—Summary
FY 2018-19 CIB Major Project Emphasis
Although the CIB is comprised of budgets for many individual projects, there are several major projects
that together account for most of the total capital budget. In FY 2018-19,the emphasis will be on twelve
large projects (those projects over $1 million), which together account for $33.5 million or 74 percent of
the total CIB for the year. Each major project is summarized as follows:
Solids1. .
Estimated total project cost: $82,100,000
FY 2018-19 Budget: $5,715,000
Estimated completion date: FY 2023-24
This project will improve the Solids Handling Facility at the treatment plant by replacing the old centrifuges,
improving sludge blending, and most importantly replacing the vintage wet scrubber on the incinerators. Other
improvements are being evaluated under this project, such as ash handling improvements.
North2. Orinda • •
PE A
FY 2018-19 Budget: $3,731,000 Estimated total project cost: $4,367,000
Estimated completion date: January 2019
This project will replace or rehabilitate up to approximately 8,600 feet of small-diameter sewers located in both
public right-of-way and easements within the northern portion of the City of Orinda, north of Highway 24.
3. Lafayette Sewer Renovation— Phase uz_�
FY 2018-19 Budget: $3,397,600 Estimated total project cost: $4,033,600
Estimated completion date: January 2019
This project will replace or rehabilitate up to approximately 8,800 feet of small-diameter sewers located in both
public right-of-way and easements within the City of Lafayette.
4. Walnut Creek Sewer Renovation— Phase 12
FY 2018-19 Budget: $3,100,000 Estimated total project cost: $4,550,000
Estimated completion date: December 2018
This project will replace or rehabilitate up to approximately 8,500 feet of small-diameter sewers located in both
public right-of-way and easements within the City of Walnut Creek.
FY 2018-19 Budget: $3,000,000 Estimated total project cost: $7,300,000
Estimated completion date: FY 2019-2020
This project will rehabilitate or replace gates and other mechanical equipment, and existing concrete structures
with leaks or cracks.
South6. •
FY 2018-19 Budget: $2,758,873 Estimated total project cost: $4,721,000
Estimated completion date: December 2018
This project will replace or rehabilitate up to approximately 8,900 feet of small-diameter sewers located in both
public right-of-way and easements within the southern portion of the City of Orinda, south of Highway 24.
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Capital Improvement Program—Summary
MO. . . -
FY 2018-19 Budget: $2,697,000 Estimated total project cost: $27,180,000
Estimated completion date: FY 2022-23
This project will make several structural, electrical, and instrumentation improvements at the Moraga, Flush
Kleen, and Orinda Crossroads Pumping Stations identified during a recent condition assessments.
Replacement includes generators, piping, diesel engines, transfer switches, electrical equipment and other
critical items found to be deficient or nearing the end of their useful life.
8. Collection Svstem Sewer Renovat!10646"h
FY 2018-19 Budget: $2,612,527 Estimated total project cost: $56,379,067
Estimated completion date: FY 2021-22
This project is for sewer selection planning and design work for new sewer replacement projects totaling up to
36,500 feet of replacement.
. .
FY 2018-19 Budget: $2,457,000 Estimated total project cost: $22,360,000
Estimated completion date: FY 2023-24
This project will make several structural, mechanical, electrical, and instrumentation improvements at the
recycled water facilities Filter Plant and Clearwell identified during recent condition assessments. Replacement
include equipment and other critical items found to be deficient or nearing the end of its useful life.
10. Information Technology(IT) Development
16
FY 2018-19 Budget: $1,750,000 Estimated total project cost: $7,324,794
Estimated completion date: FY 2025-26
This project is the implementation of the IT Master Plan which includes the new Enterprise Resource Planning
System (ERP), network infrastructure upgrades, Disaster Recovery/Business Continuity, Cloud based
technology improvements, business application suite improvements, increasing mobile presence, Desktop
technology refreshment, and Web redesign and enhancement.
11. Energy Recovery and Blower Replacement
Estimated total project cost: $60,150,000
FY 2018-19 Budget: $1,200,000
Estimated completion date: FY 2026-27
This project will evaluate the condition of the treatment plant energy recovery and aeration blower systems.
The project will evaluate the replacement and recommend improvements to the existing steam system, waste
heat recovery, steam turbines, and improve the secondary treatment systems related to aeration energy
requirements and activated sludge processes.
FY 2018-19 Budget: $1,100,000 Estimated total project cost: $2,530,000
Estimated completion date: FY 2020-21
The POB houses staff for the Plant Operations and Plant Maintenance Divisions, the main Control Room,
Control System Servers, Board Room, and the Multi-Purpose Room which also serves as the Emergency
Operations Center. POB seismic improvements will be made to meet the Damage Control Performance Level.
CIB Modifications
The recommended CIB includes several changes compared to the previous budget. A major change has
been the addition of a brief statement to each project description concerning operations and maintenance
(O&M) impacts resulting from the capital improvement. Historically, all projects evaluate, analyze, and
consider O&M impacts during project development. This administrative change is to highlight and
coordinate these impacts with the Operating Budget. Insignificant impacts are minor cost savings or
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Capital Improvement Program—Summary
increases to the current Operating Budget up to $25,000. Significant impacts are costs that increase or
decrease the Operating Budget over$25,000. These impacts are usually not fully determined until after
the planning phase of a project.
Other changes include the rescheduling, consolidation, phasing, modification of scope and renaming of
projects as following:
Rescheduled Projects
• Water System Upgrades was authorized by the Board on December 21, 2017. This project will replace
the existing air gap tank and system, replace backflow preventers, add testing stations, and include
reliability and safety improvements for the potable water system at the treatment plant. The estimated
total budget is $800,000 and this scope was included and bid under the Piping Renovation—Phase 9,
DP 7330.
• The Recycled Water Clearwell Repairs was authorized by the Board on March 1, 2018 and
construction was awarded on April 5, 2018. This project will clean the west cell of the Clearwell,
dispose of the solids, install a modular cover, and repair the east cell cover at a total estimated project
cost of$1.7 million. The budget was funded by the IT Development Project, Ultraviolet Disinfection
Project, and included as a contingency project in the FY 2017-18 CIB.
Consolidation or Phasing of Existing Projects:
• The Piping Renovation—Phase 9, DP 7330, scope and budget was combined with the Treatment Plant
Urgent Repairs, DP 7314, and the Water System Upgrades.
• The South Orinda Sewer Renovation—Phase 6, DP 8433, scope and budget was combined with the
Collection System Urgent Repairs, DP 8434, and the Pipe Burst Blanket Contract 2017-2020,
DP 8440.
• The Pumping Station Upgrades in the Collection System Program has been split into two project
phases. Phase 1 will include renovation of the Moraga, Orinda Crossroads, and Flush Kleen Pumping
Stations. Phase 2 will include renovation of the Martinez, Fairview, and Maltby Pumping Stations.
Modification of Scope:
• The Mechanical and Concrete Renovations, DP 7351, included up to $800,000 of expedited
construction efforts to replace the primary sedimentation tank rails, and new chain and flights.
Renaming of Projects:
• Renamed the Aeration and Energy Upgrades Project, DP 7349, to "Energy Recovery and Blower
Replacement" in the Treatment Plant Program.
CEQA Compliance
The CIB is exempt from the California Environmental Quality Act (CEQA) because it is a planning
study (Central San CEQA Guidelines Section 15262). Some projects included in this CIB are
designated as exempt under CEQA. If appropriate, a Notice of Exemption may be filed for such
projects following a future action of the Board, such as an award of a construction contract. Other
projects in the CIB are designated as needing a "Negative Declaration" or "Environmental Impact
Report" to comply with CEQA. Non-exempt CEQA projects will be considered for Board approval
on a case-by-case basis after preparation and certification of the appropriate CEQA documentation.
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Capital Improvement Program—Summary
The table below presents the CEQA compliance status of projects for which staff is requesting an
authorization of Sewer Construction Funds. The types of CEQA documentation anticipated being
required for each project are listed below:
• Exemption: Staff will recommend an Exemption Finding, if still appropriate, when each project
receives approval consideration at a future Board meeting.
• Negative Declaration: Staff will prepare a Negative Declaration for the project. Board
consideration of approval of the project would follow its approval of the Negative Declaration.
• Environmental Impact Report (EIR): Staff will direct preparation of an EIR. Board consideration
of approval of the project would follow certification of the EIR.
• CEQA Documents Completed: For these projects, CEQA compliance has already been achieved
through documents previously prepared and approved.
CEQA Compliance Summary for FY 2018-19
Program/Projecte • Document Required
COLLECTION SYSTEM PROGRAM
5991 Pleasant Hill Sewer Renovation—Phase 2 X
6602 South Jackson Contractual Assessment District X
CAD
6603 North Jackson Contractual Assessment District X
CAD
8249 CSO Dump Pad Modification X
8419 Collection System Planning X
8433 South Orinda Sewer Renovation—Phase 6 X
8435 Walnut Creek Sewer Renovation— Phase 12 X
8436 Pump Station Upgrades Phase 1 X
8441 Cured-in-Place Pipe (CIPP) Blanket Contract X
8442 Pumping Station Equipment and Piping X
Replacement—Phase 2
8443 Large Diameter Pipeline Inspection Program X
8444 Force Main Inspection Program X
8445 North Orinda Sewer Renovation—Phase 7 X
8446 Lafayette Sewer Renovation - Phase 12 X
8447 Pumping Station Security Improvements X
8448 Manhole Modification Project X
8449 Collection System Modeling Support X
8450 Development Sewerage Support X
8451 Collection System Sewer Renovation X
Planning is exempt; more
information is needed on future
TBD Pumping Stations Upgrades— Phase 2 X aspects of this project to
determine the appropriate CEQA
documentation.
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Capital Improvement Program-Summary
Program/Project -ma wmmm CEMA Document Required
TREATMENT PLANT PROGRAM
7291 Pump and Blower Building Seismic Upgrade X
7292 Switchgear Refurbishment—Phase 2 X
7304 Programmable Logic Controller(PLC)Systems X
Upgrades
7315 Applied Research and Innovations X
7317 Plant Control System Network Upgrades X
7320 Plant Energy Optimization (Cogen) X
7 17W Fire Protection System—Phase 2 X
7326 Equipment Replacement X
7327 Headworks Screenings UpgradejEEMENEENE& X
7328 Influent Pump Electrical Improvements X
7329 Furnace Burner Upgrades X
7330 Piping Renovation—Phase 9 X I
7339 Plant Control System 1/0 Replacement X
Contra Costa County Flood
Control and Water Conservation
7341 Walnut Creek/Grayson Creek Levee Rehab District will be the Lead Agency
and will determine the
appropriate CEQA
documentation.
7348 Solids Handling Facility Improvements X
7349 Energy Recovery and Blower Replacement X
7351 Mechanical and Concrete Renovations X
7352 UV Disinfection Upgrades X
7353 Outfall Improvements—Phase 7 X
7354 Treatment Plant Security Improvements X
7355 Odor Control Upgrades—Phase 1 X
7357 Plant-Wide Instrumentation Upgrades X
Planning is exempt; more
information is needed on future
ow aspects of this project to
7358 Innovative Renewable Energy Project X determine the appropriate CEQA
documentation. Will also likely
require NEPA compliance as
directed by DOE.
7359 Solids Conditioning Building Roof Replacement X
Existing Plant Facilities As-Is Drawings X
7362 Plant Operations Building (POB) Seismic Upgrades X
Treatment Plant Planning X
7364 Treatment Plant Safety Enhancement—Phase 5 X
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Capital Improvement Program—Summary
GENERAL IMPROVEMENTS PROGRAM
8207 General Security and Access X
8227 Geographic Data Integration (GDI)Treatment Plant X
8230 Capital Legal Services X
8236 District Easement Acquisition X
8238 Asset Management Program Development X
8240 Information Technology(IT) Development X
erver Room Relocation A X
8247 Property and Building Improvements X
8248 Cyber Security X
8516 Equipment Acquisition X
8517 Vehicle Replacement Program X
RECYCLED WATER PROGRAM
7306 Zone 1 Recycled Water dl X
7346 Recycled Water Distribution System Surge Analysis X
7361 Filter Plant and Clearwell Improvements X
7365 Recycled Water Clearwell Repairs X
TBD Recycle Water Distribution System Renovations I X
Program
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Capital Improvement Program—CIB Collection System Program
CIB — Collection System Program
The following are the major points of emphasis for the FY 2018-19 Collection System Program:
• Renovate sewers as they reach the end of their useful lives to avoid structural failure, sanitary sewer
overflows, and control maintenance costs;
• Improve the reliability and operations of the pumping stations; and
• Comply with the Riverwatch settlement agreement.
The process for project identification,prioritization, and scheduling takes into consideration the
following seven major components:
• Reduce impacts to customers/residents and the communities;
• Results from Central San's InfoMaster® model, which is an advanced Geographic Information
System integrated risk-based analytical asset management and capital planning tool;
• Results from Central San's TV Inspection Program that identify lines in need of rehabilitation or
replacement;
• Collection System Operations (CSO)maintenance records including overflows and stoppages;
• The Pumping Station Inventory Update,which identified necessary reliability improvements;
• Collection System Master Plan, which identified capacity limitations in the collection system; and
• Coordination with capital improvement programs for paving and pipeline projects of other
agencies/utilities.
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 InfoMaster® and
Closed-Circuit TV 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 the
following projects, and planned expenditures.
' Example of Project Driver(s)
Aging Capacity Each project is described on the following pages. Each project
Infrastructure summary includes project name, description, prioritization,purpose,
E operating department impact and funding source, location,budgetary
information and drivers (i.e., what is the main impetus for a project).
Regulatory Sustainabilit The main driver(s) for each project is (are) identified by highlighting
INN IN in orange background color and bold text. Driver(s)that is (are)not
as significant or not relevant is (are) displayed in gray.
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Capital Improvement Program-CIB Collection System Program
All projects in this program are summarized, including planned expenditures, in the following Table 2:
CIB Table 2 - FY 2018-19 Collection System Program Budget/Project Summary
Project Project Budget-to- FY 2018-19 FY 2019-20 Future FYs Total Project
Number Date Cost
5991 Pleasant Hill Sewer Renovation-
Phase 2 $460,000 $0 $0 $0 $460,000
6602 South Jackson Contractual
Assessment District(CAD) $411,290 $0 $0 $0 $411,290
6603 North Jackson Contractual
Assessment District CAD $400,000 $0 $0 $0 $400,000
8249 CSO Dump Pad Modifications
$60,000 $o $o $o $60,000
8419 Collection System Planning $870,000 $100,000 $206,000 $412,000 $1,588,000
8433 S.Orinda Sewer Renovation-Phase 6 $1,962,127 $2,758,873 $0 $0 $4,721,000
8435 Walnut Creek Sewer Renovation-
Phase 12 $1,450,000 $3,100,000 $0 $0 $4,550,000
8436 Pump Station Upgrades-Phase 1
$1,300,000 $2,697,000 $5,315,000 $17,868,000 $27,180,000
8441 CIPP Contract 2017-2020 $300,000 $100,000 $103,000 $0 $503,000
8442 Pump Station Equipment&Piping
Replacement-Phase 2 $36,000 $25,000 $103,000 $436,000 $600,000
8443 Large Diameter Pipeline Inspection
Program $200,000 $50,000 $515,000 $1,030,000 $1,795,000
8444 Force Main Inspection Program $75,000 $50,000 $0 $0 $125,000
8445 North Orinda Sewer Renovation-
Phase 7 $636,000 $3,731,000 $0 $0 $4,367,000
8446 Lafayette Sewer Renovation-Phase
12 $636,000 $3,397,600 $0 $0 $4,033,600
8447 Pump Station Security Improvements
$131,000 $25,000 $51,500 $360,500 $568,000
8448 Manhole Modifications $400,000 $300,000 $309,000 $1,236,000 $2,245,000
8449 Collection System Modeling Support $100,000 $100,000 $103,000 $206,000 $509,000
8450 Development Sewerage Support $400,000 $250,000 $309,000 $1,236,000 $2,195,000
_
8451 Collection System Sewer Renovation
Phase 1 $50,000 $2,612,527 $18,181,540 $35,535,000 $56,379,067
TBD Pump Stations Upgrades-Phase 2
$0 $50,000 $907,000 $24,663,000 $25,620,000
Total Program $9,877,417 $19,347,000 $26,103,040 $82,982,500 $138,309,957
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Capital Improvement Program—CIB Collection System Program
Pleasant Hill Sewer Renovation — Phase 2
Project Nameq?'�Ieasant Hill Sewer Renovation— Phase-& 7- Project No.
Program: Collection System Phase: Design
Priority Rank: Very High Ranking Score: 60
Purpose: - Drivers
IIIIII
To replace and renovate small diameter sewers within the City of Aging Capacity
Pleasant Hill. Infrastructure
Drivers:
Regulatory Sustainability
Central San's 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 -Opt
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 SSOs. Central San implemented a
sewer renovation program in 1991 to replace 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 customers.
Description:
The Pleasant Hill Sewer Renovation—Phase 2 Project will replace or rehabilitate small diameter sewers
located in both public right-of-way and easements within the City of Pleasant Hill.Design and
construction for this project will be included and coordinated with the Collection System Sewer
Renovation—Phase 1 Project.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): City of Pleasant Hill
1W
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs al
Planning: $183,000 $0 $0 $0 $183,000
Desigr . x277,000 I $0 $0 $277,000
Construction: $0 $0 $0 $0 $0
FY Total: $460,000 $0 $0
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Capital Improvement Program—CIB Collection System Program
South Jackson Contractual Assessment District
Project Name South Jackson CAD Project No. . .0
Program: Collection System Phase: Construction
Priority Rank Board Approved Ranking Score: N/A
Purpose: Project Drivers
To provide a financing mechanism for the extension of public Aging
sewers into areas that are currently served by septic tanks, referred
Infrastructure Capacity
to as Contractual Assessment Districts (CADS).
Drivers: Regulatory Sustainability
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. Central San developed the CAD Program to
address this financial 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 reimbursed to Central San. Each
CAD is presented to the Board of Directors for approval.
Description: LEGEND.
- CAD
The South Jackson Way CAD in Alamo will install --- BOUNDARY
SEWEp
NC s
approximately 1,200 feet of 8-inch sewer and nwnn: ,EWER ED 4
infrastructure to serve 22 properties. This is a cost neutral SEWER
project offset and paid for by the participating property
owners.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues and repaid by the CAD participants.
Location(s): Unincorporated Alamo
1W IPhase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Ir Planning: $0 $01 $0 $0 $0
Design: $0 $0 $0 $0 fiso
Construction: $411,290 $0 $0 $0 $411,290
11111111111111111IFY Total: $411,290 $0 $0 $0 $411,290
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Capital Improvement Program—CIB Collection System Program
North Jackson Contractual Assessment District
Project No. . .0
Program: Collection System Phase: Construction
Priority Rank I Board Approved Ranking Score: N/A
Purpose: •
To provide a financing mechanism for the extension of public Aging W Capacity
sewers into areas that are currently served by septic tanks, referred Infrastructure
to as Contractual Assessment Districts (CADS).
Drivers: Regulatory Sustainability
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.
Central San developed the CAD Program to address this } ,
financial 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
f
amount is reimbursed to Central San. Each CAD is presented
to the Board of Directors for approval.
1i061D: y*
�! CAD
Description: - BOUNDARY f7
SEWER EXISTING f� r
The North Jackson Way CAD in Alamo will install .,..,..,, PROPOSED
approximately 1,150 feet of 8-inch sewer and infrastructure SEWER
to serve up to 14 properties. This is a cost neutral project
offset and paid for by the participating property owners.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues and repaid by the CAD participants.
Locatiorl Unincorporated Alamo
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0 $0
Construction: $400,000 $0 $0 $0 $400,000
FY Total: $400,000 $0 $0 $0 $400,000
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Capital Improvement Program—CIB Collection System Program
CSO Dump Pad Modifications
• - . ,1 1��111 1111 . .111 , .
11 1
Program: Collection System Program Phase: Design
Priority Rank: Very High Ranking Score: 60
Purpose: • - •
This project will reconfigure the CSO dump pad to improve safety Aging Capacity
and efficiency. Infrastructure
Drivers: Regulatory Sustainability
The current CSO dump pad slopes towards the front of the truck.
Water flows under the trucks as they are unloaded to the
trench drain which the crews then have to walk through to get
to the truck. The truck needs to be unloaded slowly to prevent
it from overflowing the drain.
Description: : .
The following are major elements included in the project:
• Demolition of the existing concrete dump pad
• Regrade the site
• Installation of new concrete
Operating Department Impact and Funding Source:
This project will not have an impact on operating budgets. Project expenditures are funded from Capital
Revenues.
Location(s): Collection System Operations Facility in Walnut Creek
• : �Wr �Nlr �Wr 'IM
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 �_ $0 $0
Design: $5,000 $0 $0 _ M
Construction: $55,000 $0 $0 $0 $55,000
FY Total: ,000 $0 $0 1 $0 1 1 $60,000
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Capital Improvement Program—CIB Collection System Program
Collection System Planning
IL
N Project Name Collection System Planning Project No. 8419
Program: Collection System Phase: Planning
Priority Rank: Critical Ranking Score: 70
Purpose: Prp ect •
To complete technical evaluations to address regulatory drivers, Aging EM Capacity
assess collection system replacement needs, evaluate sewer Infrastructure
capacities, and investigate optimization opportunities.
Drivers: Regulatory Sustainability
There are several important collection system and pumping CA
station planning efforts. An InfoMaster® sewer replacement risk ®� t
model is maintained by staff and used to identify and prioritize
the gravity sewers in most need of renovation,update the long-
term strategy for sewer replacement, and confirm long-term
capital improvement plan project costs and timing.
This project also includes developing the InfoMaster® _
framework needed to incorporate force main and large diameter
sewer inspection results into a risk-based, long-term renovation
and inspection strategy. As collection system and pumping
station optimizations and innovative technologies are identified, - -
staff will continue to evaluate and determine if a pilot project 0 -
would be beneficial.
Description:
The following are major elements included in the project:
• Perform capacity evaluations for proposed developments and special discharge requests
• Update InfoMaster® sewer replacement risk model and long-term sewer replacement strategy
• Update InfoMaster®to incorporate main and large diameter inspection results to develop long-term
renovation and inspection strategies
• Evaluate new technologies and pilots applicable to collection system/pumping station operations
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Locatioll Collection System and Pumping Stations
Project Budget I
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $870,000 $100,000 $206,000 $412,000 $1,588,000
Design: $0 $0 $0 $0 $0
Construction: $0 $0 $0 $0 $0
FY Total: $870,000 $100,000 $206,000 $412,000 $1,588,000
151
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Page 160 of 264
Capital Improvement Program—CIB Collection System Program
South Orinda Sewer Renovation — Phase 6
P.AS
Program: Collection SystemDesign/Construction
Priority Rank: Critical Ranking Score: 65
Purpose:
To replace and renovate small diameter sewers within the southern
portion of the City of Orinda. AginCapacity
Infrastructure
Drivers:
Central San's 1,500+mile collection system has pipe segments that Regulatory Sustainability
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 — s
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 SSOs. Central San implemented a sewer renovation
program in 1991 to replace 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
customers.
Description:
The South Orinda Sewer Renovation—Phase 6 Project will replace or rehabilitate up to approximately
8,900 feet of small diameter sewers located in both public right-of-way and easements within the
southern portion of the City of Orinda, south of Highway 24.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): City of Orinda
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs r=Totall
Planning: $150,000 $0 $0 $0 $150,000
esign: $400,000 $0 $0 $0 $400,000
Construction: $1,412,127 $2,758,873 $0 $0 $4,171,000
I: $1,962,127 $2,758,873 $0 $0 $4,721,000
152
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Page 161 of 264
Capital Improvement Program—CIB Collection System Program
Walnut Creek Sewer Renovation — Phase 12
Project No.
IP
Program: Collection System Phase Construction
Priority Rank: I Critical Ranking Score: 65
Purpose:
To replace and renovate small diameter sewers within the City of Aging Capacity
Walnut Creek. Infrastructure
Drivers: Regulatory Sustainability
Central San's 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. J
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 SSOs. Central San
5
implemented a sewer renovation program in 1991 to
replace 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 customers.
Description:
The Walnut Creek Sewer Renovation - Phase 12 Project will replace or rehabilitate up to approximately
8,500 feet of small diameter sewers located in both public right-of-way and easements.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): City of Walnut Creek and Unincorporated Contra Costa County
Project Budget,!
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs otal
JCon
lanning: $150,000 $0 $0 $0 $150,000
Design: $400,000 $0 $0 $0 $400,000
truction: $900,000 $3,100,000 $0 $0 $4,000,000
Y Total: $1,450,000 $3,100,000 $0 $0 $4,550,000
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Page 162 of 264
Capital Improvement Program—CIB Collection System Program
Pumping Station Upgrades — Phase 1
Pumping .
Program: Collection System Phase: Design
Priority Rank: Critical Ranking Score: 80
Purpose: _
To address aging infrastructure and reliability needs at the Moraga,
Flush Kleen, and Orinda Crossroads Pumping Stations. This project Infrasgructure Capacity
also includes the replacement of the metering in the North Main
Metering Vault.
Regulatory Sustainability
Drivers:
As part of the Comprehensive Wastewater Master Plan
(CWMP), a comprehensive condition assessment of the rf _
pumping stations has identified several structural, mechanical, _
electrical, and instrumentation improvements. An Arc Flash
Study has also identified several improvements required at
these pumping stations. 71
Description:
The following are major elements included in the project:
• Add grinder(s) at the Moraga Pumping Station "-- -
• Construct surge tank canopy at Orinda Crossroads Pumping
Station
• Replace wet weather diesel engines at Moraga and Orinda Crossroads Pumping Stations
• Replace backup generators and automatic transfer switch improvements
• Recondition or replace pumps, valves, and gates
• Repair/recoat piping and concrete
• Major electrical/controls replacement, including Arc Flash Study recommendations
• Replace worn control panels and seismically brace control panels and electrical cabinets
• Improve safety devices such as replacement of gas detection systems and eye wash stations
• Replace the flowmeter inside the Concord North Main Metering Vault
Operating Department Impact and Funding Source:
Impacts on the operating budgets has yet to be determined. Project expenditures are funded from Capital
Revenues.
Location(s): Moraga, Flush Kleen, and Orinda Crossroads Pumping Stations, and Concord Main
Metering Vault
NOW:TM
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $450,000 $0 $0 $0 $450,000
Design: $850,000 $2,400,000 $0 $3,250,000
Construction: $0 $297,000 $5,315,000 $17,868,000 $23,480,000
FY Total: $1,300,000 $2,697,000 $5,315,000 $17,868,000 $27,180,000
154
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Capital Improvement Program—CIB Collection System Program
Cured-In-Place Pipe (CIPP) Contract 2017-2020
Program: Collection System Phase: Construction
Priority Rank: I Critical Ranking Score: 75
Purpose:
I Drivers
Use cured-in-place pipe (CIPP)technology to repair any urgent Aging Capacity
pipelines which require immediate action. Infrastructure
Drivers: Regulatory Sustainability
Urgent pipeline projects which require immediate repairs may arise
anytime during a fiscal year. Some of these repairs cannot be
completed by Central San's CSO crews and there is typically
not enough time to wait for incorporation into a sewer
renovation project.
Description:
This project will include bidding and executing a blanket
contract that will allow Central San to use a contractor to
perform urgent CIPP work. F
CIPP repair work may be triggered by one of the following
situations:
• Structural failure of a pipe ,
• Imminent threat of pipe break or collapse
• Potential for a SSO
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Locatioll Collection System
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $100,000 $0 $0 $0 $100,000
Construction: $200,000 $100,000 $103,000 $0 $403,000
FY Total: $300,000 $100,000 $103,000 $0 $503,000
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Capital Improvement Program—CIB Collection System Program
Pumpin Station PSE ui ment and Pi ing Replacement - Phase 2
EquipmentProject Name PS .
. 8442
Program: Collection System Phase: Construction
Priority Rank: I Critical Ranking Score: 65
Purpose:
To replace or recondition failed and obsolete pumps, piping, valves, Aging
and other pumping station equipment; and to provide proper Infrastructure Capacity
emergency response equipment and critical spare parts at pumping
stations.
Regulatory Sustainability
Drivers:
This project has been an ongoing replacement of aging
equipment and piping in poor condition at the pumping
stations.
Additionally, emergency response equipment and critical spare
parts are identified to improve resiliency and reliable operations
during emergency conditions, power failures, and severe wet
weather conditions.
Selection of equipment is completed by Plant Operations, Plant
Maintenance, and Engineering staff in coordination with the
ongoing Asset Management Program.
Description:
e
fc
The following are major elements included in the project:
• Install control and isolation valves for shutdown and pumping station protection
• Revise control strategies and equipment response times
• Flood protection measures and critical equipment
• Emergency bypass pumping equipment and piping
• Recondition major equipment to meet original factory specifications
• Purchase critical spare parts for major pumping station equipment
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Pumping Stations
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
ANEDesign- $0 $0 $0 $0 $0
Construction: $36,000 $25,000 $103,000 $436,000 $600,000
lI FY Total: $36,000 1 $25,000 1 $103,000 1 $436,000 1 $600,000
156
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Capital Improvement Program—CIB Collection System Program
Large Diameter Pipeline Inspection Program
ProgramProject Name Large Diameter Pipeline Inspection
Program: Collection System Phase: Planning
Priority Rank: Critical Ranking Score: 70
Purpose:
To assess the condition of large diameter trunks and interceptors -�
and confirm the timing for replacement needs. Infr Agructure Capacity
Drivers:
Central San owns 76 miles of wastewater trunks and interceptors Regulatory Sustainability
ranging from 24-inches to 102-inches in diameter. The typical
lifespan of large diameter sewers ranges from 50 to 150 years
depending on pipe material, hydraulic, operating, and ..
environmental conditions. Nearly half of Central San's large ,
diameter pipes are over 50 years in age and should be evaluated for
remaining life.
Although Central San performs CCTV inspection of large diameter
sewers, CCTV inspection is not always practical and does not
always provide an accurate condition assessment. For example,
CCTV cannot detect external corrosion and cannot assess the
condition of the pipe invert when sediment is present. A
combination of CCTV inspection, enhanced CCTV with laser
profiling, sonar, hydrogen sulfide monitoring, and visual walk-over surveys are recommended to assess
the condition of large diameter sewers. Inspection information can be used to ensure replacement of
pipelines prior to failure and appropriate timing of replacement.
Description:
A phased large diameter inspection program was developed and prioritized based on pipeline age and
consequence of failure:
• Inspect nine miles of high-risk large diameter pipelines every five years
• Inspect six miles per year of medium-risk large diameter pipelines for the first three years followed
by three miles per year after the first three years (seven-year inspection frequency)
• Inspect eight miles per year of low-risk large diameter pipelines (seven-year inspection frequency)
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Locatioll Collection System
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $200,000 $50,000 $515,000 $1,030,000 $1,795,000
EEL Design- $0 $0 $0 $0 $0
Construction: $0 $0 $0 $0 $0
FY Total: $200,000 $50,000 $515,000 $1,030,000 $1,795,000
157
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Capital Improvement Program—CIB Collection System Program
Force Main Inspection Proram
. .
Program: Collection System IL I Phase: Planning
Priority Rank: Critical Ranking Score: 65
Purpose: Pro ect Drivers
To assess the condition of force mains and confirm the timing for
replacement needs. Infrastructure Capacity
Drivers:
Central San maintains 31 force mains with a combined length of Regulatory Sustainability
approximately 23 miles. More than 65 percent of the force mains
are made of metallic materials which are prone to corrosion. The
typical lifespan of force mains ranges from 50 to 100 years. Over
half of the existing force mains were installed 40 or more years
ago. The remaining lifespan of individual force mains are difficult ,
to estimate without inspection-based condition assessment results.
Force main failure methods include internal corrosion, external
corrosion, mechanical failures due to high pressure and surge
events or due to external loads and stresses, and force main
material or installation defects. Recommended force main
inspection methods include CCTV inspection,pressure transient w ,
monitoring, acoustic leak detection, and electromagnetic .-
inspection. ,
Description:
A phased force main inspection program was developed and prioritized based on force main age and
consequence of failure:
• FYs 2017-20, inspect force mains at Moraga, Orinda Crossroads, Lower Orinda, Bates Boulevard,
and Wagner Ranch Pumping Stations
• FYs 2020-27, inspect force mains at San Ramon, Martinez, Fairview, Maltby, Clyde, Concord
Industrial, and Acacia Pumping Stations
• Other pumping stations have a lower risk and will be inspected in a later phase
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Collection System
• . . - _Em�
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs
Planning: $75,000 $50,000 r $0 $0 7$0
Design: $0 $0 0
Construction: $0 $0 $0 $0
FY Total: $75,000 $50,000 $0 $0 $125,000
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Capital Improvement Program—CIB Collection System Program
North Orinda Sewer Renovation — Phase 7
•
Program: Collection System Phase: Construction
Priority Rank: I CriticalRanking Score: 65
Purpose: . _ . -
To replace and renovate small diameter sewers within the northern * Aging g Capacity
portion of the City of Orinda. Infrastructure
Drivers:
Central San's 1,500+mile collection system has pipe segments that Regulatory Sustainability
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. n
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 SSOs. Central San
implemented a sewer renovation program in 1991 to replace
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 customers.
Description:
The North Orinda Sewer Renovation—Phase 7 Project will replace or rehabilitate up to approximately
8,600 feet of small diameter sewers located in both public right-of-way and easements within the
northern portion of the City of Orinda, north of Highway 24.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): City of Orinda
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Wotal
Planning: $203,000 $0 $0 $0 $203,000
Design: $322,000 $0 $0 $322,000
Construction: $111,000 $3,731,000 $0 $0 $3,842,000
FY Total: $636,000 $3,731,000 $0 $ $4,367,000
159
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Capital Improvement Program—CIB Collection System Program
Lafayette Sewer Renovation — Phase 12
Troject Name Lafayette Sewer Renovation— Phase 12 Project No. 8446
Program: Collection System Phase: Construction
Priority Rank: Critical Ranking Score: 65
Purpose: Project Drivers
To replace and renovate small diameter sewers within the City of Aging Capacity
Lafayette. Infrastructure
Drivers: Regulatory Sustainability
Central San's 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 SSOs. Central San -
implemented a sewer renovation program in 1991 to -
replace small diameter sewers to control future
maintenance requirements and costs, to minimize them
number of overflows, to limit the quantity of rainfall
entering the collection system, and to improve the level of �
service provided to customers.
Description:
The Lafayette Sewer Renovation—Phase 12 Project will replace or rehabilitate up to approximately
8,800 feet of small diameter sewers located in both public right-of-way and easements within the
City of Lafayette.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): City of Lafayette
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $150,000 $0 $0 $0 $150,000
Design. $320,000 $0 $0 $0 $320,000
Construction: $166,000 $3,397,600 $0 $0 $3,563,600
l FY Total: $636,000 $3,397,600 $0 $0 $4,033,600
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Capital Improvement Program—CIB Collection System Program
Pumina Station Security Imi2rovements
ImprovementsProject Name Pumping Station Security
Program: Collection System Phase: Design
Priority Rank: Critical Ranking Score: 65
Purpose: 112MMMEMEW
To improve physical security at the pumping stations and to protect Aging Capacity
existing critical assets. Infrastructure
Drivers:
Regulatory Sustainability
In addition to worker safety, there are many critical assets that
require physical security improvements to minimize the risk.
In FY 2016-17, a comprehensive security study was completed for
major Central San facilities that utilized the principles of American
Water Works Association J100 Risk Analysis and Management for
Critical Asset Protection methodology (RAMCAP(M J100).
RAMCAP® J100 is a comprehensive approach that enables the
estimation of relative risks across multiple assets while considering
both malevolent and natural hazards. The RAMCAP J100 method
is a 7-step process including: 1)Asset Characterization; 2) Threat
Characterization; 3) Consequence Analysis; 4) Vulnerability
Analysis; 5) Threat Analysis; 6)Risk/Resilience Analysis; and 7) Risk/Resilience Management.
Description:
Findings related to the pumping stations will be implemented under this project. Some improvements
may be implemented in collaboration with other capital programs. In general, recommendations include:
• Increased surveillance and intrusion detection
• Access control improvements
• Perimeter fencing repair
• Increased signage and other miscellaneous security improvements
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Locatioll Pumping Stations
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $131,000 $0 $0 $0 $131,000
Construction: $0 $25,000 $51,500 $360,5001 $437,000
FY Total: $131,000 $25,000 $51,500 $360,500 $568,000
161
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Capital Improvement Program—CIB Collection System Program
Manhole Modifications
Program: Collection System Phase: Construction
Priority Rank: Critical Ranking Score: 65
Purpose: W
To replace, repair, or raise manhole covers and top blocks to match Aging
roadway elevations in coordination with pavement restoration plans Infrastructure Capacity
with agencies or existing conditions.
Drivers: Regulatory Sustainability
Central San's collection system includes over 37,000
manholes. Many of these manholes are in paved
roadways, public right-of-way and private roadways, andr;.
r -
throughout the entire service area. Continual replacement
of manhole covers or repairing top blocks are needed on =t
a yearly basis as the system ages or the roadways are ` ' t
rebuilt.
Description:
This project will fund the replacement or raising of
manhole covers and repairing top blocks either through
construction projects or reimbursements through other
agency contractors through joint powers agreements.
Operating Department Impact and Funding
Source:
This project does not have an impact on the operating budgets. However, if Operations were to self-
perform, it would have a significant impact. Project expenditures are funded from Capital Revenues.
Location(s): Collection System
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0 $0
Construction: $400,000 $300,000 $309,000 $1,236,000 $2,245,000
FY Total: $400,000 $300,000 $309,000 $1,236,000 $2,245,000
162
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Capital Improvement Program—CIB Collection System Program
Collection System Modelin Su ort
IL
Project Name Collection S stem Modeling . . .
�ll 7- Project No. 8449
Program: Collection System Phase: Construction
Priority Rank: Critical Ranking Score: 65
Purpose: - .
To maintain and update the InfoWorks®hydrodynamic collection Aging Capacity
system model. Infrastructure
Drivers:
A new InfoWorks® Integrated Catchment Modeling (ICM) Regulatory Sustainability
hydrodynamic collection system model was configured and
calibrated for 190 miles of the trunk sewer system. The new
model replaced an old steady-state static model that was no
longer supported by vendors and did not offer the same level
of accuracy or useful output information that is available
with new vendor-supported state-of-the-art hydrodynamic
models.
The new model is used for several critical Central San
operations such as evaluating sewer capacities, identifying
capacity deficiencies, developing sewer sizing criteria,
evaluating impacts from increased flows due to development
(paid by permit or plan review fees) and special discharges, -
evaluating re-routing options, and providing hydraulic grade
line information that is helpful during emergencies or sewer
renovation work.
Description:
The following are major elements included in the project:
• Complete migration from the previous steady-state static model to the new InfoWorks® ICM model
• Complete expansion of the trunk sewer model into high priority development areas where anticipated
sewer capacity evaluations will be required
• Identify critical areas with model predicted surcharge conditions and install level monitors or smart
manhole covers
Operating Department Impact and Funding Source:
This project will have a minor impact on the operating budget due to software updating and licensing
costs. Project expenditures are funded from Capital Revenues.
Locatioll Collection System
Project Budget__. 11�n
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 1 $0 $0
Design: $0 0 $0 $0
Construction: $100,000 $100,000 $103,000 $206,000 $509,000
FY Total: 1 $100,000 1 $100,000 $103,000 $206,000 $509,000
163
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Capital Improvement Program—CIB Collection System Program
Development Sewerage Support
Program: Collection System 11ML Phase: Construction
Priority Rank: N/A Ranking Score: N/A
Purpose: Project Drivers
To provide for appropriate capitalization of Central San force Aging
account labor and other expenses for planning, design, and Infrastructure Capacity
construction of developer installed sewer facilities.
Drivers: Regulatory Sustainability
Central San requires property owners to pay for main sewer
extensions needed to serve their property. Where sewers
are designed and installed by developers or other private
parties, Central San planning, plan review, right-of-way, Standard
inspection and record drawing/mapping efforts are Specificationis
required to ensure that installed sewers meet for is
Central San's Standard Specifications for Design and Design and Construction
Construction. These activities are capitalized under this .*
project. -
A portion of the revenue collected for plan review and a.. ,
inspection is credited to the Sewer Construction Fund andItA
offsets some of the expenditures made under this capital
project.
Description:
This is a cost-neutral project offset by development fees.
The costs for the sewer infrastructure will ultimately be
paid by the developers. This project will be used to fund,
right-of-way, survey, and consultant costs for developer
installed sewer facilities.
Operating Department Impact and Funding Source:
This project will have a minor impact on the operating budgets; however, these costs are recovered
under fees paid for by developers. Project expenditures are funded from Capital Revenues.
Location(s): Collection System
. -
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0
Construction: $400,000 $250,000 $309,000 $1,236,000 $2,195,000
FY Total: $400,000 $250,000 $309,000 $1,236,000 $2,195,000
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Capital Improvement Program—CIB Collection System Program
Collection System Sewer Renovation — Phase 1
MOM
Program: Collection System Phase: Design/Construction
Priority Rank: Critical Ranking Score: 65
Purpose:
To plan and design for sewer replacement projects for collection W Aging
system sewers that are near the end of their useful lives. Infrastructure Capacity
Drivers:
Regulatory Sustainability
Nearly all Central San's sewers will reach the end of their useful
lives within the next 100 years. The bulk of the replacement is
recommended beyond the Ten-Year CIP. Continual replacement
will provide the best possible protection against SSOs. The °
InfoMaster® sewer replacement risk model was developed to
prioritize the timing for sewer replacement and to develop a risk- 20�OW,W
based sewer replacement program. In the first five years, Central
San is planning to replace an average of 7.6 miles per year followed
by approximately 8.6 miles per year for the next five years.
Replacement for years 10 through 20 in the CIP increases to potentially 18.4 miles per year. The
Collection System Sewer Renovation—Phase 1 will span the next five fiscal years (FYs 2018-23).
Description:
This project is for sewer selection planning and design work for new sewer replacement projects totaling
up to 36,500 feet of replacement. These designs will be bid and split into individual projects for
construction and will span two fiscal years. These projects include:
• Walnut Creek Sewer Renovation—Phase 13
• Lafayette Sewer Renovation—Phase 13
• Danville Sewer Renovation—Phase 3
• Martinez Sewer Renovation—Phase 6
• South Orinda Sewer Renovation—Phase 6
• Miscellaneous sewer replacements in Alamo, Danville, Moraga, Unincorporated Contra Costa
County, and other locations or jurisdictions in the service area.
Operating Department Impact and Funding Source:
Impacts on the operating budgets has yet to be determined. Project expenditures are funded from Capital
Revenues.
Locatioll Collection System
. . -
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs r$2,5O4,000
Planning: $50,000 $600,000 $618,000 $1,236,000
Design: $0 $1,400,000 $2,051,740 $2,884,000 $6,335,740
Construction: $0 $612,527 $15,511,800 $31,415,000 $47,539,327
FY Total: $50,000 $2,612,527 $18,181,540 $35,535,000 $56,379,067
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Capital Improvement Program—CIB Collection System Program
Pumping Stations Upgrades — Phase 2
UpgradesProject Name Pumping Stations
Program: Collection System Phase: Design
Priority Rank: Critical Ranking Score: 65
Purpose: N-IMMOMMIll
To address aging infrastructure and reliability needs at the Martinez, Aging Capacity
Fairview, and Maltby Pumping Stations. Infrastructure
Drivers: Regulatory Sustainability
As part of the CWMP, a comprehensive condition assessment of the
pumping stations has identified several structural, mechanical, << -
electrical, and instrumentation improvements. An Arc Flash
Study has also identified several improvements required at these
pumping stations. This project, previously referred to as the
Moraga/Crossroads Pumping Station Project(DP 8436), was
combined with the Fairview/Maltby Project(DP 8429 Closed).
r:
Description:
The following are major elements included in the project:
• Replace corroded steel dry pits with new wetwells at the
Fairview and Maltby Pumping Stations
• Replace backup generators, electrical, instrumentations and
controls improvements i
• Rehabilitate or replace flow meters at Martinez, Fairview, and
Maltby Pumping Stations
• Recondition or replace pumps, valves, and gates
• Repair/recoat piping and concrete
• Major electrical/controls replacement, including Arc Flash Study recommendations
• Replace worn control panels and seismically brace control panels and electrical cabinets
• Improve safety devices such as replacement of gas detection systems and eye wash stations
Operating Department Impact and Funding Source:
Impacts on the operating budgets has yet to be determined. Project expenditures are funded from Capital
Revenues.
Location(s): Martinez, Fairview, and Maltby Pumping Stations
dget
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $50,000 $0 $0 $50,000
Design: $0 $0 $907,000 $2,300,000 $3,207,000
Construction: $0 $0 $0 $22,363,000 $22,363,000
FY Total: $0 $50,000 $907,000 $24,663,000 $25,620,000
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Capital Improvement Program—CIB Treatment Plant Program
CIB — Treatment Plant Program
The following are the major points of emphasis for the FY 2018-19 Treatment Plant Program:
• Replace equipment as they reach the end of their useful lives to avoid structural and mechanical
failures, reduce downtime, and control maintenance costs;
• Upgrade Central San facilities to seismic building codes and standards;
• Respond to regulatory requirements related to pending air emissions regulations; and
• Increase sustainability and energy related projects.
Asset Rehabilitation and Replacement Projects
Projects in this subprogram are targeted at asset preservation, rehabilitation, and replacement. The main
projects in this program are the Piping Renovations—Phase 9 Project and Mechanical and Concrete
Renovations Project, which will improve the process reliability of the treatment plant by renovating
and/or replacing various piping, instrumentation, equipment, and repair concrete structures. Other
projects include Ultraviolet(UV) Disinfection Equipment Upgrades, DP 7362, and Plant-Wide
Instrumentation Upgrades, DP 7357, which will extend the useful life of existing equipment and/or
facilities. The construction of the Headworks Screenings Upgrade Project, DP 7327, will continue from
the previous year. Another significant project will be the continuation and completion of the final design
of the Solids Handling Facility Improvements Project, DP 7348, which includes sludge blend tanks,
solids dewatering equipment replacement(feed pumps, centrifuges, cake pumps), wet scrubber, ash
handling improvements, as well as associated electrical, instrumentations and controls improvements.
Regulatory Compliance/Planning/Safety Projects
This subprogram includes projects that emphasize preparing for future regulations and treatment plant
planning, which includes pilot testing various new technologies. Work will be implemented to comply
with pending new air permitting requirements and the installation of incinerator emissions improvements
is included in the Solids Handling Facility Improvements Project. Safety and security improvements
will continue under this subprogram. Solids Conditioning Building and multiple hearth furnaces seismic
improvements evaluation and design will continue under the Solids Handling Facility Improvements
Project. The Plant Operations Division office building seismic improvement project will also begin.
Expansion Projects
There are no projects in the Expansion Program in FY 2018-19.
Sustainability/ Resiliency/Energy Projects
Under this subprogram, aeration and energy related projects will be initiated.
ir Example of Project Driver(s)
Each project is described on the following pages. Each project
Aging Capacity summary includes project name, description,prioritization, purpose,
Infrastructure M operating department impact and funding source, location,
budgetary information and drivers (i.e., what is the main impetus
M for a project). The main driver(s) for each project is (are) identified
Regulatory Sustainability by highlighting in orange background color and bold text. Driver(s)
that is (are) not as significant or not relevant is (are) displayed in
gray.
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Capital Improvement Program-CIB Treatment Plant Program
All projects in this program are summarized, including planned expenditures, in the following Table 3:
CIB Table 3 - FY 2018-19 Treatment Plant Pro ram Bud et/Pro'ect Summary
Project Alllllllllllllllllllll�Projed� Budget-to- FY 2018-19 FY 2019-20 Future FYs Total Project
Number Date Cost
Pump&Blower Building Seismic
7291 Upgrade $6,582,000 $0 $0 $0 $6,582,000
7292 Switchgear Refurbishment-Phase 2 $770,000 $200,000 $226,600 $0 $1,196,600
7304 PLC Systems Upgrades $575,000 $110,000 $113,300 $226,600 $1,024,900
7315 Applied Research&Innovations $557,274 $300,000 $515,000 $1,030,000 $2,402,274
Plant Control System Network
7317 Upgrades $330,000 $100,000 $0 $0 $430,000
7320 Plant Energy Optimization(Co Gen) $1,094,000 $0 $0 $0 $1,094,000
7322 Fire Protection System-Phase 2 $1,406,000 $0 $0 $0 $1,406,000
7326 Equipment Replacement $1,166,000 $250,000 $0 $0 $1,416,000
7327 Headworks Screenings Upgrade $8,144,000 $76,000 $0 $0 $8,220,000
Influent Pump Electrical
7328 Improvements $100,000 $510,000 $1,380,000 $2,758,000 $4,748,000
7329 Furnace Burner Upgrades $220,000 $0 $0 $0 $220,000
7330 Piping Renovation-Phase 9 $2,566,000 $614,000 $0 $0 $3,180,000
Plant Control System 1/0
7339 Replacement $470,000 $900,000 $1,133,000 $1,839,000 $4,342,000
Walnut Creek/Grayson Creek Levee
7341 Rehab $100,000 $0 $515,000 $515,000 $1,130,000
Solids Handling Facility
7348 Improvements $4,975,000 $5,715,000 $11,130,000 $60,280,000 $82,100,000
Energy Recovery and Blower
7349 Replacement $300,000 $1,200,000 $3,713,000 $54,937,000 $60,150,000
7351 Mechanical and Concrete Renovations $1,300,000 $3,000,000 $3,000,000 $0 $7,300,000
7352 UV Disinfection Upgrades $0 $500,000 $300,000 $300,000 $1,100,000
7353 Outfall Improvements-Phase 7 $0 $400,000 $2,240,000 $1,812,000 $4,452,000
Treatment Plant Security
7354 Improvements $87,000 $50,000 $788,000 $915,000 $1,840,000
7355 Odor Control Upgrades-Phase 1 $44,000 $200,000 $824,000 $2,935,000 $4,003,000
7357 Plant-Wide Instrumentation Upgrades $100,000 $190,000 $515,000 $1,236,000 $2,041,000
7358 Innovative Renewable Energy Project $300,000 $0 $100,000 $200,000 $600,000
Solids Conditioning Building Roof
7359 Replacement $500,000 $800,000 $0 $0 $1,300,000
7360 Existing Plant Facilities As-Is Drawings $100,000 $100,000 $103,000 $51,500 $354,500
Plant Operations Building(POB)
7362 Seismic Upgrades $400,000 $1,100,000 $1,030,000 $0 $2,530,000
7363 Treatment Plant Planning $450,000 $450,000 $566,500 $1,133,000 $2,599,500
Treatment Plant Safety Enhancement
7364 Phase 5 $0 $100,000 $100,000 $0 $200,000
Total Program $32,636,274 $16,865,000 $28,292,400 $130,168,100 $207,961,774
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Capital Improvement Program—CIB Treatment Plant Program
Pum and Blower Building Seismic UIMpradde
ME911111 fjr10[9 E.19011JI;gm-111 ILS III to 1L. , • •
Program: Treatment Plant 1JL Phase: Construction
Priority Rank: Critical Ranking Score: 65
Purpose: Project
To improve the seismic safety of the Pump and Blower Building. Aging Capacity
Infrastructure
Drivers:
In January 2008, the State of California adopted the 2007 California Regulatory Sustainability
Building Code (2007 CBC). Among the updates in the 2007 CBC
were significant changes to seismic design. In 2009, a
seismic evaluation was completed for the treatment plant
facilities (Martinez Wastewater Treatment Plant Seismic
Vulnerability Assessment of Selected Facilities, December
2009). Included in the evaluation were recommendations p�
to bring the Pump and Blower Building up-to-date with
current seismic design standards.
The Pump and Blower Building houses equipment that is
critical for treatment plant operation including the aeration
turbines,primary effluent pumps, standby effluent pumps,
final effluent pump, plant air system, 3W pumps, and
critical electrical rooms.
Description:
Construct seismic improvements to the Pump and Blower Building as recommended by the 2009
Vulnerability Assessment to improve seismic safety. Major components include concrete shearwalls,
structural steel bracings, modifying columns and beams, and other specialty seismic design upgrades to
Life Safety Plus standards.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Pump and Blower Building
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $715,000 $0 $0 $0 $715,000
Construction: $5,867,000 $0 $0 $0 $5,867,000
Y Total: $6,582,000 $0 $0 $0 $6,582,000
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Capital Improvement Program—CIB Treatment Plant Program
Switchgear Refurbishment - Phase 2
Program: Treatment Plant Phase: Construction
Priority Rank: Critical Ranking Score: 70
Purpose: • -
To refurbish electrical switchgears in order to maintain the Aging Capacity
reliability of critical electrical infrastructure at the treatment plant.
Infrastructure P y
Drivers: Regulatory Sustainability
The electrical switchgear throughout the treatment plant was
installed in the 1970s and has been well maintained using
preventive techniques.
Inspections in 2003 and 2004 showed that several trip r.
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:
h .nunaN
This project is a multi-year program to repair and replace
treatment plant electrical equipment including:
• Refurbish or replace approximately 66 480V circuit
breakers over a five-year period -
• Replace 2400V circuit breakers and air breakers at key
substations (e.g. Substations 52 and 82)
• Replace protective relays for various switchgear throughout the treatment plant
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Several Substations within the Treatment Plant
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0 1 JIM
Construction: $770,000 $200,000 $226,600 $0 $1,196,600
FY Total: $770,000 $200,000 $226,600 $0 $1,196,600
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Capital Improvement Program—CIB Treatment Plant Program
PLC System ; Upgrades
Upgrades7304
Program: Treatment Plant Phase Construction
Priority Rank Very High LRanking Score 50
Purpose: P IIIIII
To upgrade programmable logic control (PLC) systems to current Aging Capacity
technology for increased performance and improved compatibility Infrastructure
to develop and maintain programming standards.
Drivers: Regulatory Sustainability
The first PLCs were installed at the treatment plant in the
mid-1980s. The number of PLCs has increased from the
original two PLCs to more than 30 PLCs. Programming
software for the newer PLCs no longer runs efficiently on
the older programming units. ;
Description:
The following are major elements included in the project:
• Upgrade hardware and software necessary to maintain
new PLC applications
• Replace older computers with newer computers capable
of running current software
• Upgrade older PLC models to maintain compatibility
with new equipment, instrumentation, and controls
• Develop and document programming standards for PLC and Supervisory Control and Data
Acquisition (SCADA)
Operating Department Impact and Funding Source:
This project will have minor savings for the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
Budget
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $96,700 IL $0 $96,700
Construction: $478,300 $110,000 $113,300 $226,600 $928,200
FY Total: $575,000 $110,000 $113,300 $226,600 $1,024,900
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Capital Improvement Program—CIB Treatment Plant Program
A lied Research & Innovations
. . - 1111111111 1111�� III!!
.
Program: Treatment Plant Phase: Planning
Priority Rank Very High Ranking Score: F 50
Purpose: -
To implement applied research projects that evaluate promising Aging Capacity
technologies,processes, and innovations. Infrastructure
Drivers: Regulatory Sustainability
One of Central San's goals is to embrace innovation and to be a
leader in the wastewater industry. There are several
emerging and innovative nutrient removal and solids
handling technologies that may offer significant savings f
and reduced footprint requirements when compared to
conventional technologies. Innovations in equipment and
instrumentation that may be beneficial will be considered.
Prior to implementing any major renovations for nutrient
removal or converting solids handling technologies, staff
will evaluate the feasibility of emerging technologies and
implement applied research pilots. These pilots will help oe
verify the compatibility with wastewater and facilities,
increase understanding of the technology, and help
determine whether to consider the technology.
Description:
Examples of some applied research opportunities being considered include:
• Nutrient removal technologies such as membrane aerated bioreactors or aerobic granular sludge
• New technologies for large diameter and force main condition assessment
Operating Department Impact and Funding Source:
The impacts to operating budgets have not yet been determined. Project expenditures are funded from
Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
Project Budget -
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Tture FYs �To!tal
Planning: $557,274 $300,000 $515,000 $1,030,000 $2,402,274
Design: $0 $0 $0 $0 $0
Construction: $0 $0 $0 $0 $0
FY Total: $557,274 $300,000 $515,000 $1,030,000 $2,402,274
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Capital Improvement Program—CIB Treatment Plant Program
Plant Control System Network U rades
Program: Treatment Plant Phase: Construction
Priority Rank Very High Ranking Score: 60
Purpose:
To upgrade the Plant Control System Ethernet Network to Aging
Industrial Ethernet standards.
Infrastructure Capacity
Drivers: Regulatory Sustainability
In 2006, Central San's treatment 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 treatment plant, but the redundancy was not
maintained. Currently, the primary path for treatment ' > ,
plant data traffic runs over the Ethernet system that is JW
neither redundant nor sufficiently reliable to meet control 1900`
system standards. 2 yrs
Description:
The following are major elements included in the project
to meet industry standard redundancy and reliability
standards:
• Install and configure industrial type Ethernet switches
• Install fiber optic lines for the Treatment Plant Control System
• Install industrial wireless network
Operating Department Impact and Funding Source:
This project will have minor savings for the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
ZCon
esign: $0 $0 $0 $0 $0
ction: $330,000 $100,000 $0 $0 $430,000
Total: $330,000 $100,000 $0 $0 $430,000
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Capital Improvement Program-CIB Treatment Plant Program
Plant Ener v O timization — Coc
jeneration
EnergyProject Name Plant Optimization Project No. 7320
Program: Treatment Plant Phase: Construction
Priority Rank I Critical Ranking Score: 70
Purpose: • -
To increase energyefficient on-site energy production, and � Aging
y� gyInfrastructure Capacity
decrease greenhouse gas emissions for the treatment plant.
Drivers: Regulatory Sustainability
The purpose of this project is to increase energy efficiency, reduce
utility costs, and decrease carbon monoxide (CO) emissions
at the treatment plant. There has been a significant increase
in Pacific Gas & Electric Company costs due to CO emission
limits imposed by the Bay Area Quality Management District
on the cogeneration system(Cogen). Based on current utility - z
bills, the yearly import increase is approximately $300,000. _
This Project will reduce CO emissions by installing an
oxidation catalyst and increase energy efficiency during hot p
weather operations by installing an evaporative cooling ,
system. These improvements will help ensure regulatory
compliance and reduce electrical costs. '
Description:
The following energy efficiency measures include:
• Add a CO catalyst
• Add an evaporative cooler system on the intake of the Cogen
• Replace the reverse osmosis water system to the Cogen
• Modify the Cogen controls system for project elements
Operating Department Impact and Funding Source:
This project will have significant impacts (energy savings) to the operating budgets. Project
expenditures are funded from Capital Revenues.
Location(s): Solids Conditioning Building
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $80,000 $0 $0 $0 $80,000
Design. $320,000 $0 $0 $0 $320,000
Construction: $694,000 $0 $0 $0 $694,000
AffFY Total: $1,094,000 $0 $0 $0 $1,094,000
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Capital Improvement Program—CIB Treatment Plant Program
Fire Protection System — Phase 2
Program: Treatment Plant Phase: Construction
Priority Rank Critical Ranking Score: 65
Purpose: • -
To upgrade or replace treatment plant fire alarm systems. Aging Capacity
Infrastructure
Drivers:
Most of the fire alarm system was built in the late 1970s, and the Regulatory Sustainability
fire alarm control panel was upgraded in the early 2000s. There are
seven existing fire systems (alarm, monitoring, and
suppression types) at the treatment plant. The existing fire
systems are the primary notifications to the control-room
operators and the occupied buildings in the event of a fire.
Wiring and devices on the fire alarm system continue to be
problematic and are in frequent need of repair. Repairs to .■
the fire alarm system have become extremely complex and
difficult; therefore, long-term reliable improvements to the `Y
fire alarm system are needed. '*�
xa
Description:
Staff anticipates the recommended improvements will be
implemented over a multi-year fire improvement program: —
• Phase 1 of the project, completed in 2013, replaced the
outdated Headquarters Office Building fire system and corrected limited treatment plant deficiencies
• Phase 2 includes a comprehensive evaluation and implementation of recommended improvements for
life safety of occupied(public and staff) areas of all staffed and critical process areas in the treatment
plant
Operating Department Impact and Funding Source:
This project will have insignificant impact to the operating budgets. Project expenditures are funded
from Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 F7i;
Total
JCon
anning: $162,000 $0 $0 $162,000
Design: $200,000 $0 $0 $200,000
ruction: $1,044,000 $0 $0 $1,044,000
Y Total: $1,406,000 $0 $0 $0 $1,406,000
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Capital Improvement Program—CIB Treatment Plant Program
Equipment Re lacement
Program: Treatment Plant Phase: Construction
Priority Rank Critical Ranking Score: 80
Purpose: ProjectE
To replace pumping systems, mechanical equipment, and minor Aging Capacity
process support facilities throughout the treatment plant. Infrastructure
Drivers: Regulatory Sustainability
Several major pieces of equipment are reaching the end of their
useful life and require replacement/upgrading or #,
reconditioning. This project will be coordinated with the
Asset Management Program to 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 serviceable or supported by its
manufacturer.
Description:
This project is a multi-year program to repair and replace
equipment such as:
• Pumps and impellers
• Miscellaneous steam system components, traps, and
accessories
• Miscellaneous air conditioning systems for buildings and motor control center rooms
• Various small pumping systems and generators
• Miscellaneous support equipment such as cranes, elevators, etc.
• Other equipment in need of immediate repair as identified by the Asset Management Program, and
Maintenance and Operations staff
Operating Department Impact and Funding Source:
This project will have insignificant impact on the operating budgets. Project expenditures are funded
from Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
Project Budget
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0 0
Construction: $1,166,000 $250,000 $0 $0 $1,416,000
FY Total: $1,166,000 $250,000 $0 $0 1,416,000
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Capital Improvement Program—CIB Treatment Plant Program
Headworks Screenin s U rade
Program: Treatment Plant Phase: Construction
Priority Rank: I Critical Ranking Score: 75
Purpose: • -
IIIIII
To separate and remove screenings and plastics from the influent Aging Capacity
wastewater. Infrastructure
Drivers: Regulatory Sustainability
The current screenings operation utilizes coarse bar screens installed
approximately 25 years ago at the Headworks to separate
screenings. The screenings are then processed by grinders ,
and reintroduced immediately downstream of the screens.
This operation does not remove any of the plastics in the
wastewater which contribute to fouling of numerous liquid
and solids stream processes and equipment and may
contribute to furnace acid gas emission impacting future
regulations. Screenings removal will optimize operations,
protect downstream treatment plant facilities, extend , -
downstream equipment life, minimize screenings - A�__
downtime due to grinder hopper overload, and reduce ��
equipment maintenance. - OF
Description:
The project investigated the current Headworks screening
operation and recommended the most strategic and cost-effective screenings removal improvements.
The project includes the following major elements:
• Replace four existing 3/4-inch bar screens with four new multi-rake 1/4-inch bar screens
• Install new screenings washer/compactors, sluiceway, and screenings handling facility
• Replace two existing 4-inch bar racks with two re-purposed existing 3/4-inch bar screens, hoppers, and
grinders
Operating Department Impact and Funding Source:
This project will have significant impact(increased disposal costs) on the operating budgets. The project
also includes minor energy savings and long-term reduction of equipment maintenance. Project
expenditures are funded from Capital Revenues.
Location(s): Headworks Facility
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FY! Total
Planning: $200,000 $0 $0 $0 $200,000
Design. $750,000 $0 $0 $0 $750,000
Construction: $7,194,000 $76,000 $0 $0 $7,270,000
FY Total: $8,144,000 $76,000 $0 1 $0 $8,220,000
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Capital Improvement Program—CIB Treatment Plant Program
Influent Pump Electrical Im 9rovements
. .
Program: Treatment Plant Phase: Planning
Priority Rank: I Critical Ranking Score: 65
Purpose: mote 5,19kyl:1
To address aging electrical components of the influent pumps and Aging
improve reliability. Infrastructure Capacity
Drivers:
Regulatory Sustainability
The Influent Pump Facility is critical to operations. During wet
weather, some of the pumps convey wastewater to the holding
basins. Without the pumps, wastewater cannot be treated or
stored in the basins. The Influent Pump motors are in a dry pit 1_
room below grade that is susceptible to flooding. A leak in the .�
piping or flooding of the connected tunnels would potentially
submerge the motors and the entire treatment plant would
experience a catastrophic shutdown. Electrical improvements
are recommended to improve reliability and resiliency. The
Influent Pumps PLCs and variable frequency drives (VFDs)
are outdated technology installed over 20 years ago and are
becoming increasingly difficult to maintain. These VFDs
have experienced multiple failure recently and are essential to --
managing flows,particularly during wet weather events.
Description:
Several major improvements in the influent pumping process area include:
• Replace Influent Pumps VFDs and upgrade Influent Pumps PLCs
• Replace Influent Pumps motor(s)with immersible motor(s) or elevate to withstand flooding
• Replace Headworks Rooftop Chiller and related piping
• Add Influent Pump No. 6 for reliability and redundancy during peak wet weather events
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Influent Pump Station (Headworks Facility)
Phase: Budget-to-Date FY 2018-19 FY 2019-20Future FYs Total
Planning: $100,000 $0 $0 $0 $100,000
Design: $0 $510,000 $140,00 $$0 $650,000
Construction: $0 $0 $1,240,000 $2,758,000 $3,998,000
FY Total: $100,000 $510,000 $1,380,000 $2,758,000 $4,748,000
178
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Page 187 of 264
Capital Improvement Program—CIB Treatment Plant Program
Furnace Burner Upgrades
lot Program: Treatment Plant Phase: Design
Priority Rank: I Critical Ranking Score: 75
Purpose:
To improve the operational flexibility of the existing multiple hearth W
Aging
furnaces to comply with emission requirements and reduce Capacity
supplemental fuel energy consumption. This project is being Infrastructure
combined with the Solids Handling Facility Improvements.
Regulatory Sustainability
Drivers:
The furnaces were constructed during the early 1970s and became fully operational in 1985. They were
originally designed to incinerate commingled solid waste and sludge; however, they have historically
only incinerated wastewater solids. As a result, some of
the burners are not optimally sized for the actual furnace
loading or for current landfill gas usage, which results in
increased difficulty for consistently maintaining proper
temperatures in the furnace. In addition, some of the
burners, mounts,piping, and associated equipment are 4� !
reaching the end of their useful lives and need to be �► �;
replaced. The fuel gas piping to the burners has also
developed leaks that require continued attention to meet
leak guidelines. Many of the components of the control
system are becoming obsolete.
Description:
The following elements are included in the project:
• Replace original fuel gas system piping using welded joints
• Evaluate diesel fuel as an additional furnace fuel source for emergency use
• Replace fuel system components for two to four of the afterburners (top hearth) and decrease burner
output to low oxides of nitrogen/high mix burners for improved temperature control
• Replace main burners and controls with new low oxides of nitrogen burners and modern controls
Operating Department Impact and Funding Source:
This project will have significant impact(energy savings) on the operating budgets. Project expenditures
are funded from Capital Revenues.
Location(s): Solids Conditioning Building
. .
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $30,000 $0 $0 $0 $30,000
Design: $190,000 $0 $0 $0 $190,000
Construction: $0 $0 $0I $0 $0
FY Total: $220,000 $0 $0 $0 $220,000
179
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Page 188 of 264
Capital Improvement Program—CIB Treatment Plant Program
Piping Renovation — Phase 9
i
Program: I Treatment Plant EL Phase: 11"Construction
Priority Rank: I Critical Ranking Score: 70
Purpose: W
To inspect, rehabilitate, and replace above-grade and below-grade
piping and related systems at the treatment plant. Infrastructure Capacity
Drivers:
During the main treatment plant improvements project in the 1970s Regulatory Sustainability
(Stage 5A project), numerous above-grade and below-grade piping
systems were installed throughout the treatment plant. _ -
These pipes convey wastewater, sludge, steam, air, and
other utility services between various process areas.
Many of these piping systems have been in operation for
over 40 years without any major rehabilitation or ,
replacement. Some piping systems are leaking due to
corrosion and the condition of some systems is unknown
because they have not been visually inspected.
F �,.Q
Description: �-
The following are major elements included in the project:
• Replace miscellaneous chemical systems piping
• Replace piping, valves, and pumps throughout the
treatment plant
• Replace boiler feedwater valves and steam flow transmitters
• Replace miscellaneous sludge piping,pumps, valves, floor drains, and water piping
• Replace equipment identified by the Asset Management Program, and Operations and Maintenance
staff
• Water system upgrades (contingency project) and includes scope of the Treatment Plant Urgent
Repairs (Project 7314 Closed)
Operating Department Impact and Funding Source:
This project will have insignificant impact on the operating budgets. Project expenditures are funded
from Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
Project Eludget
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $230,000 $0 $0 $0 $230,000
Design: $450,000 $0 $0 $0 0
Construction: $1,886,000 $614,000 $0 $0 $2,500,000
FY Total- $2,566,0007- $614,000 $0 $0 $3,180,000
180
June 7, 2018 Regular Board Meeting Agenda Packet- Page 307 of 446
Page 189 of 264
Capital Improvement Program—CIB Treatment Plant Program
Plant Control System 1/0 Replacement
• id 1101 Mot
Program: Treatment Plant Phase: Planning/Design
Priority Rank: Critical Ranking Score: 65
Purpose: grucaL12=1
To upgrade obsolete PLC Input and Output(1/0) cards and Aging
associated systems with current technology to maintain reliable
Infrastructure Capacity
operation and vendor support.
Drivers: Regulatory Sustainability
PLC 1/0 cards are critical for equipment and
instrumentation communication to the treatment plant
control system for process control and monitoring. The = _ •+q
first treatment plant PLC I/O card was installed in the
mid-1980s. The number of 1/0 cards in use has increased
from only a few to nearly 1,800 cards. Approximately
1,100 of these 1/0 cards are currently obsolete.
Replacement units cannot be purchased from the
manufacturer, nor are they fully supported. Central San
maintains an inventory of over 100 spare 1/0 cards to _
i
reactively replace units as they fail.
Description:
This is a multi-phase effort to replace obsolete 1/0 cards
and improve associated control system components. The
following are major elements included in the project.
• Replace obsolete 1/0 with modern Schneider X80 1/0
• Retrofit 1/0 communication including network cards and communication cabling
• Provide uninterruptible power system (UPS)power to 1/0 panels
• Upgrade field wiring and devices as necessary
• Provide as-built documentation of the updated system
Operating Department Impact and Funding Source:
This project will have insignificant impact on the operating budgets. Project expenditures are funded
from Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $200,000 $0 $0 $0 $200,000
Design: $270,000 $0 $300,000 $0 $570,000
Construction: $0 $900,000 $833,000 $1,839,000 $3,572,000
YTotal: $470,000 $900,000 $1,133,000 $1,839,0007— $4,342,000
181
June 7, 2018 Regular Board Meeting Agenda Packet- Page 308 of 446
Page 190 of 264
Capital Improvement Program—CIB Treatment Plant Program
Walnut Creek/Grason Creek Levee Rehab
Project No. 734�
Program: Treatment Plant Phase: Design
Priority Rank: High Ranking Score: 40
Purpose: �Illlllllllll�roject Drivers
To reduce the risk of flood damage to the treatment plant by raising
levees through a project led by the Contra Costa County Flood Aging Capacity
Control and Water Conservation District(FCD). Infrastructure
1
Drivers: Regulatory Sustainability
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, and currently owned and maintained by the
FCD. Overtopping of the levees could catastrophically
disable treatment plant operations, result in significant
facility damage, negatively impact the environment due to
discharge of untreated sewage, and impair the local iiiias economy. In 2007, the FCD implemented an interim flood
control measure to desilt 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 at
least a 200-year storm with three feet of freeboard, consider for sea level rise, and climate change.
Description:
Due to the critical nature of the treatment plant facilities, the levees will be raised to provide a protection
level of a 200-year to 500-year storm with adequate freeboard. The FCD will be the lead agency, and
Central San will provide support for design review and construction coordination. Both agencies have
agreed to equally share the estimated project cost of
$2.2 million. Central San anticipates accepting and storing soil on buffer property that can be used as
levee material to provide in-kind contributions of up to $500,000. Staff will continue to evaluate in-kind
financial contributions.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Along the Walnut Creek and Grayson Creek Levees, Kiewit Buffer Property
Project . .
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $100,000 $0 $0 $0 $100,000
in Design: $0 $0 $0 $0
Construction: $0 $0 $515,000 $515,000 $1,030,000
FY Total: $100,000 $0 $515,000 $515,000 $1,130,000
182
June 7, 2018 Regular Board Meeting Agenda Packet- Page 309 of 446
Page 191 of 264
Capital Improvement Program—CIB Treatment Plant Program
Solids Handling Facilit Improvements
Program: Treatment Plant Phase: Design
Priority Rank: Critical Ranking Score: 75
Purpose:
To rehabilitate and replace the sludge dewatering, sludge handling,
sludge blending, ash handling, furnace air pollution control Aging—mCapacity
equipment, and structural upgrades to the building housing this Infrastructure
equipment.
Drivers: Regulatory Sustainability
The existing furnaces have significant remaining useful life;
however, other solids equipment requires replacements. The centrifuges and cake pumps have been in
service for over 25 years, are costly to maintain, and spare parts are difficult to obtain. Mixing
improvements are recommended for the sludge blending/storage tanks for reliable dewatering. Ash
handling equipment is in poor condition and upgrades are recommended to reliably meet ash regulatory
requirements. A more efficient wet scrubber and other air pollution control improvements will be
needed to reliably comply with current and future air regulations. The Solids Conditioning Building
(SCB)that houses the furnaces, cogeneration unit, and other critical equipment does not meet current
seismic standards and the building is close to the Concord Fault. Electrical and control systems
associated with this equipment will need to be replaced during the project.
Description: The following are major ''
� 1 f
elements included in the project:
.,,
• Replace wet scrubber with a new venturi
scrubber capable of waste heat boiler bypass
• Replace centrifuges, cake pumps, and sludge
blending, storage, and mixing systems
• Furnace burner upgrades, ash handling
improvements to reduce fugitive ash li�W `�.J
emissions and improve reliability and modify r
emergency sludge loadout facility
• Seismic improvements for the furnaces and SCB
• Replace electrical and control systems to accommodate new equipment
Operating Department Impact and Funding Source:
This project will have significant impact(energy savings) on the operating budgets. Project expenditures
are funded from Capital Revenues.
Location(s): Solids Conditioning Building
Project Budapt
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
F Planning: $1,000,000 $0 $0 $0 $1,000,000
Z
esign: $3,975,000 $5,715,000 $1,000,000 $0 $10,690,000
ction: $0 $0 $10,130,000 $60,280,000 $70,410,000 Total: $4,975,000 $5,715,000 X$11,130,000 $60,280,000 1 $82,100,000
183
June 7, 2018 Regular Board Meeting Agenda Packet- Page 310 of 446
Page 192 of 264
Capital Improvement Program—CIB Treatment Plant Program
Energy Recovery and Blower Replacement
Project Name Energy Recovery and Blower Upgrades Project No. 7349
Program: Treatment Plant Phase: Planning
Priority Rank: Critical Ranking Score: 80
Purpose: 97UGM101=1
To replace and improve the existing steam system, waste heat W Aging
recovery, steam turbines, and improve the secondary treatment Infrastructure Capacity
systems related to aeration energy requirements.
Drivers: Central San's energy recovery system uses waste heat Regulatory Sustainability
from the incinerator and cogeneration turbine to produce steam
primarily for aeration blowers and other systems. The
existing aeration system is from the 1970s and is outdated,
inefficient, experiences significant air leaks, and has
limited turndown capabilities. The existing steam piping,
valves, and related equipment require a detailed
assessment. Although it is advantageous to recover waste
heat for producing aeration, it also creates a complicated
interconnection. Disruptions in solids and steam systems
can impact reliability of the secondary process. Similarly,
disruptions in blower operation can impact the boiler,
steam system, and impacting solids emission controls.
Description: Several major energy and aeration replacements and modifications are included:
• Evaluate the condition of the existing steam generation, steam driven systems and turbine and more
efficient options to produce power from our future waste heat recovery system;
• Evaluate modifications to existing Aeration tanks and the activated sludge system, including the
secondary clarifiers and the hydraulics; and
• Determine impact from future related projects such as optimization for nutrient removal (BACWA
Level 1) and the possible implementation and impact of a 20 million gallons per day recycled project
that would produce high quality recycled water with very low/no ammonia and low total dissolved
solids to feed the two local oil refineries.
Operating Department Impact and Funding Source:
Impacts to the operating budgets have not yet been determined. Project expenditures are funded from
Capital Revenues.
Location(s): Pump and Blower Building, Solids Conditioning Building, Aeration Basins,
Primary/Secondary Facilities, and Other Treatment Plant Areas
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs
Planning: $300,000 $1,200,000 $1,030,000 $0 7$6,7
Design: $0 $0 $2,683,000 $3,713,000
Construction: $0 $0 $0 $51,224,000 $51,224,000
FY Total: $300,000 $1,200,000 $3,713,000 $54,937,000 $60,150,000
184
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Page 193 of 264
Capital Improvement Program—CIB Treatment Plant Program
Mechanical and Concrete Renovations
Project Name Mechanical . Concrete Renovations Project No.
Program: Treatment Plant Phase: Design/Construction
Priority Rank: Critical Ranking Score: 70
Purpose: _
To rehabilitate or replace gates and other mechanical equipment,
and existing concrete structures with leaks or severe cracking. r lnfr Agructure Capacity
Drivers:
The gates, concrete, and other miscellaneous equipment and Regulatory Sustainability
surfaces within the Headworks, Pre-Aeration, and Primary
Treatment areas are exposed to corrosive environments.
Slide gates throughout these areas are essential for being
able to stop and re-direct flows as required for preventive
maintenance of facilities and for emergency and wet
weather scenarios. Many of the slide gates have
unreliable actuators, show signs of corrosion, have
deteriorating seals and wedges, and in some cases, have
been inoperable. Additionally,there are some structures
and concrete surfaces that have spalling concrete,
corroded reinforcing bars, and show signs of significant cracking. Some concrete areas require coating
to prevent further corrosion. This project is to address these aging infrastructure needs and improve the
safety and reliability of existing systems.
Description:
Several major elements are included in this project:
• Repair concrete for the West Gallery, Structure D, Primary Sedimentation Tanks, Primary Effluent
Channel, Influent Structure, and Influent Structures 1 and IA
• Replace or rehabilitate influent structure gates actuators, Influent Structure 1 and IA gates,
Pre-Aeration gates, Primary Influent gates, and Primary Effluent Channel stop plate
• Replace or rehabilitate existing polyvinyl chloride liner, 60-inch and 72-inch pipelines at Structure C,
primary collector chain and flights, embedded rails, grit washers and piping, and primary scum piping
and grinders
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Headworks, Pre-Aeration, and Primary Treatment Areas
. . d&
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design. $600,000 $500,000 $0 $0 $1,100,000
Construction: $700,000 $2,500,000 $3,000,000 $0 $6,200,000
FY Total: $1,300,000 $3,000,000 $3,000,000 $0 $7,300,000
185
June 7, 2018 Regular Board Meeting Agenda Packet- Page 312 of 446
Page 194 of 264
Capital Improvement Program—CIB Treatment Plant Program
UV Disinfection Upgrades
1=1 . .
Program: Treatment Plant Phase: Construction
Priority Rank: Critical Ranking Score: 65
Purpose: PL9ject Drivers
To rehabilitate components of the UV disinfection system and Aging g Capacity
improve reliability. Infrastructure
Drivers:
The UV system was constructed in the mid-1990s. The old Regulatory Sustainability
denitrification tanks were re-purposed for constructing the UV
channels and some piping modifications were completed
to route secondary effluent to the UV system. The existing 1
UV technology is old, inefficient, and does not have the 1
same controls capabilities and automated cleaning
capabilities as newer UV technology. The existing system
requires significant cleaning and maintenance. The �I
existing electrical connections are worn and in some cases,
have failed. Until the existing UV system can be replaced,
there are several improvements needed to improve the
reliability of the existing disinfection system. A new
system is planning to be installed in the next several years. :� y
Description:
Several major elements are included in the project:
• Replace conduits and connectors between the ballasts
and UV banks
• Repair and replace components of the existing UV chemical cleaning system
• Rehabilitate or replace the UV gates, actuators, stems, and seals
• Investigate methods to reduce sunlight over UV channels
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): UV Disinfection Facility
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs r��Total
tCon
lanning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0
truction: $0 $500,000 $300,000 $300,000 $1,100,000
Y Total: $0 $500,000 $300,000 $300,000 $1,100,000
186
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Page 195 of 264
Capital Improvement Program—CIB Treatment Plant Program
Outfall Im rovements — Phase 7
Program: Treatment Plant 60 Phase Planning
Priority Rank: I Critical Ranking Score: 65
Purpose:
To inspect the land and submarine portions of the Outfall pipeline to
maintain the pipeline or repair and meet regulatory requirements. Aging
Infrastructure Capacity
Drivers:
Central San's National Pollutant Discharge Elimination System Regulatory Sustainability
Permit requires proper operation and maintenance of the Outfall
pipeline that discharges treated final effluent to Suisun Bay. Every
five to ten years, the 3.5 mile, 72-inch reinforced concrete Outfall
pipeline built in 1958 is drained and inspected to verify pipeline
alignment and condition of the pipeline and seals. As part of the last
2012 Outfall Improvements Project, over 1,500 pipe joints were -
inspected, and 368 joints were repaired with new seals. Of the 1,500
joints, approximately 950 have been replaced.
9
During the project, final effluent is routed to the Wet Weather
Holding Basins and temporarily discharged for several weeks
through the overflow weir structure to Walnut Creek in accordance
with permit requirements.
Description:
The last inspection of the Outfall was in 2013 and is due for a new inspection. This project will include
many elements as completed during the previous phase:
• Coordinate inspection and temporary bypass approval with the Regional Water Quality Control Board
(RWQCB), and obtain all other necessary permits
• Test the land portion of the Outfall and install new joint seals as necessary
• Repair access manholes and inclinometers, and update pipeline survey data
• Modify 9,000 structure/final effluent facilities as required for future Filter Plant work
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Treatment Plant, Martinez, Suisun Bay
BudgetProiect
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs JM=Total
J
lanning: $0 $200,000 $0 $0 $200,000
Design: $0 $200,000 $240,000 $0 $440,000
truction: $0 $0 $2,000,000 $1,812,000 $3,812,000
Y Total: $0 $400,000 $2,240,000 $1,812,000 $4,452,000
187
June 7, 2018 Regular Board Meeting Agenda Packet- Page 314 of 446
Page 196 of 264
Capital Improvement Program—CIB Treatment Plant Program
Treatment Plant Security Improvements
ImprovementsProject Name Treatment Plant Security
Program: Treatment Plant Phase: Design
Priority Rank: I Very High Ranking Score: 1 60
Purpose: Project
To improve physical security at the treatment plant and to protect Aging Capacity
existing critical assets. Infrastructure
Drivers:
In addition to worker safety, there are many critical assets that Regulatory Sustainability
require physical security improvements to minimize risk.
In FY 2016-17, a comprehensive security study was
completed for major Central San facilities that utilized the
principles of American Water Works Association J100 Risk
Analysis and Management for Critical Asset Protection
methodology(RAMCAP® J100). RAMCAP® J100 is a
comprehensive approach that enables the estimation of =
relative risks across multiple assets while considering both
malevolent and natural hazards. The RAMCAP® JI00
method is a 7-step process including: 1) Asset
Characterization; 2) Threat Characterization; 3) L '
Consequence Analysis; 4) Vulnerability Analysis; 5) Threat
Analysis; 6) Risk Analysis; and 7) Risk Management.
Description: Findings from this study related to the treatment plant will be implemented under this
project. Some improvements may be implemented in collaboration with the pumping station and general
security improvement projects that were also identified under the same study. In general,
recommendations include:
• Increased surveillance and intrusion detection
• Access control improvements
• Perimeter fencing repair and increased signage
• Other miscellaneous security improvements
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Treatment Plant
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs A Total
Planning: $0 $0 $0 $0 $0
Design: $87,000 $50,000 $200,000 $0 $337,000
Construction: $0 $0 $588,000 $915,000 $1,503,000
FY Total: IlU $87,000 $50,000 $788,000 $915,000 $1,840,000
188
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Page 197 of 264
Capital Improvement Program—CIB Treatment Plant Program
Odor Control Upgrades — Phase 1
Project Name Odor Control Upgrades—Phase 1 Project No. 7355
Program: Treatment Plant Phase: Planning
Priority Rank: Very High Ranking Score: 60
Purpose:
To replace existing odor control systems for the Solids Conditioning Pr Aging Capacity
Building (SCB), Headworks, Pre-Aeration tanks, and Primary
Infrastructure P y
Effluent Channel.
Drivers: Regulatory Sustainability
Central San's Odor Control Facilities Plan was last
updated in 2006. The update was based on an established
odor threshold of 20 dilutions to threshold. To meet this _
threshold goal at the treatment plant and to address aging
equipment,upgrades are recommended to the SCB,
Headworks, and Pre-Aeration Odor Control Units. The
existing odor control systems use outdated technology
with corrosive sodium hypochlorite systems. The odor
control towers, piping, panels, ductwork, and fans are
experiencing significant wear and require replacement. In -
-�L
addition, nearby surfaces such as concrete pads on
building roofs are experiencing significant corrosion.
Alternative odor control technologies will be considered
that do not use sodium hypochlorite and will minimize visible misting.
Description:
The following are major elements included in the project:
• Update the Odor Control Facilities Plan and confirm odor control threshold requirements for design
• Replace the Pre-Aeration Odor Control Unit, ductwork, panels, and piping
• Replace the Headworks Odor Control Unit, ductwork, panels, and piping
• Replace the SCB Odor Control Unit, ductwork,panels, and piping
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Headworks, Pre-Aeration, Primary Effluent Channel
ProjecfTudget
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $44,000 $109,000 $0 $0 $153,000
Design: $0 $91,000 $289,000 $250,000 $630,000
Construction: $0 $0 $535,000 $2,685,000 $3,220,000
FY Total: $44,000 $200,000 r $824,000 $2,935,000 $4,003,000
189
June 7, 2018 Regular Board Meeting Agenda Packet- Page 316 of 446
Page 198 of 264
Capital Improvement Program—CIB Treatment Plant Program
Plant-Wide Instrumentation Upgrades
Program: Treatment Plant Phase: Planning
Priority Rank: Very High Ranking Score: 60
Purpose: - ' " '
To install new instrumentation for improved monitoring, control, Aging Capacity
and optimization of Central San facilities. Infrastructure
Drivers: Regulatory Sustainability
Collection and data leveraging is becoming increasingly useful for
wastewater operations, design, and optimization. As Central San
considers future equipment upgrades, potential nutrient removal and solids handling technologies, it is
important to collect data that will be useful for the evaluation and design of those facilities. There are
also return streams that Central San has limited data for but could be helpful when evaluating future
needs. In the meantime, there are opportunities to optimize existing processes and possibly reduce
operations and maintenance costs; however, key instruments are required to evaluate these opportunities.
Energy management and efficiency measures are crucial —
elements when striving towards net zero energy. Power
meters installed at the Motor Control Centers and key =
equipment can be useful for identifying optimization
opportunities. The concept of"Big Data" is becoming
increasingly popular and is aimed at leveraging data to
analyze trends to predict how a given process will
perform in the future and proactively make adjustments.
Description:
The following elements are included in the project:
• Develop instrumentation upgrades strategy and phasing plan
• Install flow meters for improved monitoring of return streams
• Install power meters for Motor Control Centers and key equipment
• Install air flow meters for tracking channel aeration demands
• Install other miscellaneous instruments for improved process monitoring, control, and optimization
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Treatment Plant
Project Budget -�--M El
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $100,000 $0 $0 $0 $100,000
LAU Design- $0 $190,000 $0 $0 $190,000
Construction: $0 $0 $515,000 $1,236,000 $1,751,000
AIIIIIIIIIII FY Total: $100,000 $190,000 $515,000 $1,236,000 $2,041,000
190
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Page 199 of 264
Capital Improvement Program—CIB Treatment Plant Program
Innovative Renewable EnergyPro'ect OL
. .
Program: Treatment Plant Phase: Planning
Priority Rank: I Critical Ranking Score: 65
Purpose:
To evaluate implementation of renewable energy projects at Central Aging Capacity
San's treatment plant. Infrastructure
Drivers: Regulatory Sustainability
Assembly Bill (AB) 32, California's landmark greenhouse gas
(GHG) reduction legislation imposed a 25,000-metric ton of �
carbon dioxide equivalent trigger for participation in the GHG - f
Cap and Trade Program. As a result, Central San has modified its
operation to maintain treatment plant anthropogenic (fossil-fuel
derived) GHG emissions under that trigger. In some years, this
has required shutdown of the Cogeneration Facility (Cogen),
resulting in increased purchase of grid power, higher Pacific Gas
and Electric demand charges, and loss of resiliency provided by
onsite power.
A renewable energy project, sized to meet Central San's base electrical demand(-2.8 megawatts), could
allow Central San to take Cogen offline, which would reduce purchases and onsite combustion of
natural gas, reduce Central San's emission of regulated GHGs, and enable Central San to achieve its
renewable energy goals.
Description:
This project will provide the planning-phase funds to complete an evaluation of how a renewable energy
project would interconnect with the existing power supply system in the treatment plant and how the
treatment plant's energy management system would need to be reconfigured. Evaluation and
development of a renewable energy procurement (under traditional and alternative delivery methods)
may also be included.
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues and O&M.
Location(s): Treatment Plant Site
a 7 . . 1W
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs IN
Planning: $300,000 $0 $100,000 $200,*$0
$600,000
JDesign: $0 r $0 $0
truction: I $0 $0 $0 $0
FY Total: $300,000 $0 $100,000 $200,000 $600,000
191
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Page 200 of 264
Capital Improvement Program—CIB Treatment Plant Program
Solids Conditioning Building Roof Replacement
Project Name SC13 Roof Replacement Project No. 7359
Program: Treatment Plant Phase: Construction
Priority Rank: Critical Ranking Score: 70
Purpose: _a Project Drivers
To replace the roof of the Solids Conditioning Building.
Aging Capacity
Drivers: Infrastructure
Over the last 10 years, several repairs have been made to the roof to
extend its useful life. Temporary measures have been implemented Regulatory Sustainability
to protect the electrical equipment from water damage; however, the
roof is in poor condition and a roof replacement is
recommended as the long-term solution.
`A
In January 2017, Central San experienced significant rainfall. 'r
During these wet weather conditions, several roof leaks were
identified at the SCB. Some of the leakage is over critical
electrical equipment. Failure of this equipment could result inr ,
significant disruptions to operations as well as create safety
hazards. There are also several other critical assets in this .�
building, including one (1) of the two (2)treatment plant
control rooms.
Description: A
The roof will be replaced for the SCB and engineered fall protection system will be installed.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Solids Conditioning Building
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $150,000 $0 $0 $0 $150,000
Construction: $350,000 $800,0001 $0 $0 $1,150,000
JIII FY Total: $500,000 $800,000 $0 $0 $1,300,000
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Page 201 of 264
Capital Improvement Program—CIB Treatment Plant Program
WPriority
Facilities As-Is Drawings
. i
Program: Treatment Plant Phase: Construction
Rank: I N/A Ranking Score: N/A
Purpose: 97UGU12=1
To develop as-is drawings in electronic computer-aided design Aging Capacity
(CAD) format for existing facilities. Infrastructure
Drivers: Regulatory Sustainability
Central San has limited as-built drawings for existing facilities,
particularly facilities that were constructed over 40 years
ago. Additionally, there are some facilities that have hard
copy as-built drawings but are not in CAD format.
Most of Central San's facilities are over 40 years old. As �
these existing facilities require rehabilitation or a"
replacement, it will be important to have as-is CAD
drawings for implementation of capital improvement .2
projects. Additionally, it is important from an operations
and resiliency standpoint to have as-is conditions
documented and readily available for addressing potential
urgent improvements.
Description:
Compile available past project information,perform field
investigations as required, and develop as-is CAD drawings for existing facilities. Currently, the focus
for as-is drawings will be electrical facilities and treatment plant process areas where improvements are
anticipated within the next five years.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Treatment Plant
. .
MMME
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
lanning: $0 $0 $0 $0 $0
Li_mi�Design: $0 $0
Construction: 1 $100,000 $100,000 $103,0001 $51,500 $354,500
�FY Total: =100,000 $103,000 $51,500 T$354,500
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Page 202 of 264
Capital Improvement Program—CIB Treatment Plant Program
Plant Operations Building POB Seismic Upgrades
Project Name - • : Seismic Upgrades
Program: Treatment Plant Phase: Design
Priority Rank: Critical Ranking Score: 75
Purpose: Project
Improve the seismic safety of the Plant Operations Building (POB). Aging
Infrastructure Capacity
Drivers:
In January 2008, the State of California adopted the 2007 California
Building Code (2007 CBC). Among the updates in the 2007 CBC Regulatory Sustainability
were significant changes to seismic design. In 2009, a seismic
evaluation was completed for the treatment plant facilities (Martinez
Wastewater Treatment Plant Seismic Vulnerability Assessment of
Selected Facilities, December 2009). Included in the evaluation
were recommendations to bring the POB up to date with current
seismic design standards.
The POB houses staff for the Plant Operations and Plant
Maintenance Divisions, the main Control Room, Control System
servers, Board Room, and Multi-Purpose Room(MPR)which also
serves as an Emergency Operations Center. The MPR is located within POB and is frequently used by
the public. Central San has plans to construct security improvements to the MPR. This would involve
reconfiguring the space and modifying the existing restrooms to improve public access and meet
Americans with Disabilities Act(ADA) of 1990. Due to the construction, some of the work spaces may
require some modifications. Any floorplan modifications will be done in a cost-effective manner.
Description:
POB seismic improvements will be made to meet the Damage Control Performance Level. Work will
take place in the basement, main level, and roof which will include:
• Column strengthening by carbon fiber wrapping
• Addition of steel braces
• Installation of new steel collector beams
• MPR enhancements to provide ADA compliant restrooms, and improve treatment plant security and
access
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Plant Operations Building
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $ $$0 $0
Design: $400,000 $0 $0 $0 $400,000
Construction: $0 $1,100,000 $1,030,000 $0 $2,130,000
FY Total: $400,000 $1,100,000 $1,030,000 $0 $2,530,000
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Page 203 of 264
Capital Improvement Program—CIB Treatment Plant Program
Treatment Plant Planning
Program: Treatment Plant Phase Planning
Priority Rank Critical Ranking Score 85
Purpose:
To complete technical evaluations to address regulatory drivers, POF Aging EM
assess aging infrastructure, evaluate capacity requirements, and
Infrastructure Capacity
investigate opportunities to optimize operation of existing facilities.
Drivers: Regulatory Sustainability
As wastewater regulations develop and new treatment technologies
become available, process modifications may be needed. This
project includes technical evaluations to address regulatory
initiatives and maintain permit compliance (e.g. Suisun Bay
nutrient modeling work and NPDES required studies and reports).
As flows and contaminant loads and concentrations change,
capacity evaluations are needed to confirm capacity ratings of
existing facilities and to identify any potential capacity `*
improvements required to manage dry weather and wet weather {
flows and loads. Technical evaluations are completed to support ="
treatment plant operations by evaluating optimization
opportunities to improve the reliability and performance of
existing treatment plant processes and facilities. A
Description:
The following are major elements included in the project:
• Investigate and optimize performance of existing secondary treatment facilities
• Support and evaluate Bay Area Clean Water Agencies (BACWA)Nutrient Watershed Permit
technical evaluations
• Evaluate renewable energy opportunities for the treatment plant to reduce imported fuels and
greenhouse gas emissions
Operating Department Impact and Funding Source:
The impacts to operational budgets have not yet been determined. Project expenditures are funded from
Capital Revenues.
Location(s): Treatment Plant
miaza
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $450,000 $450,000 $566,500 $1,133,000 $2,599,500
JL Design: $0 $0 $0
Construction: $0 $0 $0 $0 $0
YTotal: $450,000 $450,000 $566,500 $1,133,000 $2,599,500
195
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Page 204 of 264
Capital Improvement Program—CIB Treatment Plant Program
Treatment Plant (TP) Safety Enhancement - Phase 5
.-
Program: Treatment Plant Phase: Construction
Priority Rank: I Very High Ranking Score: 60
Purpose: Project Drivers
To enhance treatment plant safety through identification of safety Aging Capacity
concerns,repairs, and capital improvements. Infrastructure
Drivers: Regulatory Sustainability
Central San and the treatment plant have proactive safety programs
that are administered by separate committees. These
committees are responsible for addressing safety concerns
at the treatment plant as identified by staff and to respond
to regulatory requirements. Often this response will
require construction of a capital project.
The first three phases of this project addressed various
safety repairs and improvements.
Description:
The project will include treatment plant facility
improvements for safety, including a second emergency
exit stairway for the control room in the Solids _ --
Conditioning Building.
In addition, the project will be coordinated with safety improvements identified in the General
Improvements Program and the costs will be assigned to their respective program.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Treatment Plant
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0 $0
Construction: $0 $100,000 $100,000 $0 $200,000
FY Total: $0 $100,000 $100,000 $0 $200,000
196
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Page 205 of 264
Capital Improvements Program—CIB General Improvements Program
CIB — General Improvements Program
The General Improvements Program is primarily concerned with property, administrative buildings,
management information systems including information technologies, asset management, and new
equipment and vehicle needs as described in more detail below:
• Vehicle Replacement Program - The CIB includes a yearly allowance for the vehicle replacement
budget. Specific vehicles are replaced each year as approved through the annual budget process.
• Equipment Acquisition- The Equipment Acquisition project comprises the items budgeted and
purchased similar to the Vehicle Replacement Program, which is included in this document. The CIB
includes an allowance for the equipment budget. Specific equipment items are approved through the
annual budget process.
• Management Information Systems - The Management Information Systems subprogram reflects the
importance of IT in the daily operation of Central San. Central San has developed an IT Master Plan
that envisions implementing specific improvements and extends several years into the future. An
allowance to meet anticipated future information technology needs has been included in the Ten-Year
Capital Improvement Plan. Funding for upgrades of Central San's Geographic Data Integration
systems and Enterprise Resource Planning software platform are included in the CIB.
• General Projects -This includes improvements to the Headquarters Office Building (HOB),
Collection System Operations Building and other properties, CIB legal expenses, easement and right-
of-way acquisition, and projects related to District property improvements.
• Asset Management- Central San has invested significant resources in its assets, and the purpose of
the Asset Management Program,which includes Treatment Plant, Collection System, General
Improvements, and Recycled Water assets, is to optimize the lifecycle of these assets to deliver high
quality and reliable services in a sustainable manner for customers with an acceptable level of risk.
Project Example of project drivers)
Each project is described on the following pages. Each project
Aging summary includes project name, description,prioritization, purpose,
Infrastructure Capacity operating department impact and funding source, location,
budgetary information and drivers (i.e.; what is the main impetus for
a project). The main driver(s) for each project is (are) identified by
Regulatory Sustainabili highlighting in orange background color and bold text. Driver(s)
that is (are) not as significant or not relevant is (are) displayed in
gray.
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Capital Improvement Program-CIB General Improvements Program
All projects in the General Improvements Program are summarized; including all past, current, and
planned budgets required to complete each project as shown on the following Table 4:
CIB Table 4 - FY 2018-19 General Improvements Program Budget/Project Summary
Project Project Budget-to- FY i i Future FYs Total Project
Number ..
8207 General Security and Access $194,616 $500,000 $103,000 $103,000 $900,616
Geographic Data Integration (GDI)
8227 Treatment Plant $425,000 $0 $0 $0 $425,000
8230 Capital Legal Services $158,665 $20,000 $20,600 $41,200 $240,465
8236 District Easement Acquisition $208,047 $50,000 $51,500 $103,000 $412,547
Asset Management Program
8238 Development $2,969,185 $400,000 $0 $0 $3,369,185
Information Technology(IT)
8240 Development $2,148,794 $1,750,000 $2,420,500 $1,005,500 $7,324,794
8243 Server Room Relocation $955,430 $880,000 $0 $0 $1,835,430
8247 Property and Building Improvements $400,000 $300,000 $257,500 $1,030,000 $1,987,500
8248 lCyber Security $75,000 $0 1 $103,000 $309,000 $487,000
8516 Equipment Acquisition $676,000 $200,000 $206,000 $1,030,000 $2,112,000
8517 Vehicle Replacement Program $1,199,000 $650,000 $772,500 $3,862,500 $6,484,000
ONEFTotal Program $9,409,737 $4,7 $3,9 $25,578,537
198
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Capital Improvements Program—CIB General Improvements Program
General Security and Access
W111111111, pffifflffll��
Program: General improvements Phase: Planning/Design
Priority Rank: Very High Ranking Score: 60
Purpose: AW. Project Drivers
To improve safety for employees and the public, meet safety
standards, reduce exposure to liability,reduce property loss, and Aging Capacity
reduce operations and maintenance expenses. Infrastructure
Drivers: Regulatory Sustainability
Security system improvements are routinely identified and refined.
Additional security measures for essential public service
facilities are required. In 2016, a comprehensive security
study was completed for major facilities that utilized the
principles of AWWA J100 Risk Analysis and
Management for Critical Asset Protection methodology.
RAMPCAP J100 is a comprehensive approach that
enables the estimation of relative risks across multiple
assets while considering malevolent and natural hazards. _ 7 -—
Description:
Findings from this study that are applicable to non-
treatment plant facilities and properties will be
implemented under this project. Improvements include:
• Installing security upgrades to the Headquarters Office
Building's Lobby to secure the area and clearly identify
the public use of the building. The restrooms previously used by the public will no longer be
accessible after the security work is complete. Modifications to the lobby are needed to provide a
public restroom and provide for business accommodations. Cameras for surveillance, alarm system
upgrades for intrusion, and associated systems will be provided.
• Access control improvements and additional card readers,perimeter fencing repair and gates
• Increased signage, improved lighting, and other miscellaneous security system improvements
Operating Department Impact and Funding Source:
Impacts to the operating budgets have not yet been determined. Project expenditures are funded from
Capital Revenues.
Locatiorl Central San-wide
Projecfffudget
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0 $0
Construction: $194,616 $500,000 $103,000 $103,000 $900,616
FY Total: $194,616 $500,000 $103,000 $103,000 $900,616
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Capital Improvements Program—CIB General Improvements Program
Geographic Data Integration Treatment Plant
Project Name GDI Treatment Plant Project No. 8227
Program: Generallmprovements Phase: Planning
Priority Rank: Critical Ranking Score: 65
Purpose: Project Drivers
To support the Asset Management Program by providing an Aging o_
Infrastructure Capacity
effective means of accessing treatment plant asset data through an
interactive map linked to multiple datasets.
Drivers: Regulatory Sustainability
After successful implementation of the collection system
Geographic Data Integration, it was determined that a
similar web interface for the treatment plant would 1'
I S
provide efficient access to asset drawings and data. ;t{ i'L
A pilot treatment plant GDI was developed and is titti .L, r
currently used by staff.
Description:
The following major tasks are included in the project:
• Implement a geographically based asset management
tool for the treatment planta
• Work with staff to optimize interface and functionality
for accessing asset data f
• Organize and gather asset data and link to treatment ,
plant GDI
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Treatment Plant
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0 $0
Construction: $425,000 $0 $0 $0 $425,000
FY Total: $425,000 $0 $0 $0 $425,000
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Capital Improvements Program—CIB General Improvements Program
Ca ital Le al Services
L Project Name Capital Legal Services Project No. E1230
Program: General Improvements Phase: Planning
Priority Rank: N/A Ranking Score: N/A
Purpose:
To streamline the processing of legal bills.
Aging Capacity
Drivers: Infrastructure
In the past, legal expenses were charged to individual
capital projects. This process required extra staff time Regulatory Sustainability
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. The processing of legal bills has _
been streamlined by charging legal expenses 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.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Locatiorl Central San-wide
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs
Planning: $158,665 $20,000 $20,600 $41,200 $240,465
Design: $0 �$0 $0
Construction: $0 $0 $0 $0 $0
FY Total: $158,665 $20,000 f $20,600 $41,200
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Capital Improvements Program—CIB General Improvements Program
District Easement Ac uisition
1 .
II
Program: General improvements Phase: j Planning
Priority Rank: Critical Ranking Score: 1 65
Purpose: Project
To improve or acquire new property land rights for existing or new Infr Agingture Capacity
sanitary sewers that are located on private properties and are not
associated with a current capital project for sewer renovation work.
Regulatory Sustainability
Drivers:
As capital projects are designed, sanitary sewer easements
may have to be acquired for those specific projects. This
project provides funds for the acquisition of easements for
projects where specific funds are not identified within the
sewer renovation capital improvement projects in the CIB. lit
Central San is currently evaluating and updating the status
of the existing capitalized easement, perfecting easements, '.
and right-of-ways.
Description:
Examples of easements that may be acquired through this
project include:
• Easements for existing sewers where no easements
currently exist
• Easements for sewers relocated through other public
agency projects
• Upgraded easements or access rights for existing sewers
• Upgraded easements for Central San's Outfall pipeline
• Easements for recycled water distribution pipelines
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Central San-wide
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0
Construction: $208,047 $50,000 $51,500 $103,000 $412,547
AJWFY Total: j $208,047 j $50,000 1 51,500 1 $103,000 1 $412,547
202
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Capital Improvements Program—CIB General Improvements Program
Asset Mana Iement Pro I
ram Develo 9
ment
Program: General improvements Phase: Construction
Priority Rank: Critical Ranking Score: 70
Purpose: -
To develop a comprehensive Asset Management Program that Aging
optimizes the lifecycle of Central San assets and delivers high Infrastructure Capacity
quality and reliable services in a sustainable manner for customers
with an acceptable level of risk.
Regulatory Sustainability
Drivers:
In FY 2014-15, an implementation plan and Board Dashboard
Policy No. 15 were adopted regarding asset
management. �CSO "
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 tasks, and the
remaining elements completed under this project. - -_~ .-
Description:
Implementation will require the following:
• Complete implementation of new CityWorks computerized maintenance management system
(CMMS) and improve functionality during roll-out
• Continued coordination and update of standard operating procedures, Operation&Maintenance
(O&M) manuals, shop, drawings, and other reports
• Drafting to consolidate treatment plant as-built drawings and information
• Consolidate CCTV databases and update Asset Management Plan
• Utility locating and condition assessments of critical treatment plant piping
• Develop and implement the Program Management Information System(PMIS)based on eBuilder
Operating Department Impact and Funding Source:
This project will have an insignificant impact on the operating budgets. Project expenditures are funded
from Capital Revenues.
Locatioll Central San-wide
Project Budget-, s
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $1,189,185 $0 $0 $0 $1,189,185
Design: $0 $0 $0 $0 AE_$0
Construction: $1,780,000 $400,000 $0 $0 $2,180,000
FY Total: $2,969,185 $400,000 $0 $0 $3,369,185
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Capital Improvements Program—CIB General Improvements Program
Information Techno ogyIT Deve lo ment
Program: Jenerallmprovements Phase: Construction
Priority Rank: I Critical Ranking Score: 70
Purpose: _
To replace and upgrade Information Technology infrastructure and
software as needed. Infrastructure Capacity
Drivers:
An Information Technology Development Plan was developed to Regulatory Sustainability
centralize efforts and funding in the development of computer and
telecommunication technology within Central San. Central San
budgets IT on an annual basis.
The IT Master Plan was approved in 2015 and its
implementation is within the Capital Improvement Budget and
the Ten-Year Capital Improvement Plan.
Description:
This project is the implementation of the IT Master Plan which
includes the following major elements:
• New Enterprise Resource Planning System
• Network infrastructure upgrades
• Disaster recovery/business continuity -
• Cloud based technology improvements
• Business application suite improvements
• Increasing mobile presence
• Desktop technology refreshment
• Web redesign and enhancement
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Central San-wide
Budget
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0I
Design: $0 $0 $0 $0 $0I
Construction: $2,148,794 $1,750,000 $2,420,500 $1,005,500 $7,324,794
FY Total: $2,148,794 $1,750,000 $2,420,500 $1,005,500 $7,324,794
204
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Capital Improvements Program—CIB General Improvements Program
Server Room Relocation
Program:
seneral Improvements Phase: Construction
Priority Rank: I Critical Ranking Score: 65
Purpose:
To relocate all servers, network, and other related computer
Aging Capacity
equipment from its current location in the Plant Operations Building Infrastructure p y
(POB)basement to the first level.
Drivers: Regulatory Sustainability
The server and equipment in the POB basement is critical for
day-to-day Central San operations, customer service, —
communication, and data management. —
4
This project was initiated after a major IT server failure at the
main network facility in the POB basement. The existing
server room is a decommissioned laboratory room which is
vulnerable to failures of nearby water and wastewater process
pipelines. Several alternatives for relocation of the server
room to a more reliable and resilient location were evaluated,
and a new server room attached to the existing POB has been
designed.
Description:
The following are major elements included in the project:
• Relocation of server, network, and related computer equipment to a new Central San server room that
will be integrated with the POB facility
• Re-routing of communication cabling and conduits to the new facility
• Professional migration of existing equipment
Operating Department Impact and Funding Source:
This project will have an insignificant impact on the operating budgets. Project expenditures are funded
from Capital Revenues.
Locatioll Treatment Plant
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
JConstruction:
lanning: $85,000 $0 $0 $0 $85,000
Design: $250,000 $ $0 $0
$620,430 $880,000 $0 $0 $1,500,430
Y Total: 955,430 $880,000 $0 $0 $1,835,430
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Capital Improvements Program—CIB General Improvements Program
Property and Building Improvements
ImprovementsProject Name Property and Building
Program: General improvements Phase: Design/Construction
Priority Rank: I Critical Ranking Score: 65
Purpose:
Protect and enhance Central San's property through needed building Agin
improvements and replacement work. Rnfrastrucg ture Capacity
Drivers:
Central San owns various properties surrounding the treatment plant Regulatory Sustainability
that require occasional additions, improvements, and replacements,
including the Imhoff Triangle, the Kiewit parcel, 4849
Imhoff Place, 4737 Imhoff Place, and others. The Kiewit
parcel has served as a buffer zone for the treatment plant. -
The Imhoff properties also serve as a buffer between the
treatment plant and nearby neighborhoods. The Imhoff --
properities are also used as rental property and to house _
Central San work groups and equipment. Central San also _ t'
owns several buildings on its treatment plant site in
addition to the Collection System Operations Building -
and Vehicle Maintenance Shop that house additional staff r
and equipment.
Description:
This project will fund needed improvements to Central
San's buildings,buffer properties, rental properties, and
the surrounding parking lots and grounds. The project may be combined with other security and similar
work in other capital projects. A near-term improvement project includes 4737 Imhoff Place which is a
commercial building partially used by Central San with the remaining space rented to businesses. The
building requires a comprehensive evaluation to determine the best alternatives to meet Central San's
operational needs and Contra Costa County's ADA requirements.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Central San-wide
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $50,000 $0 $0 $0 $50,000
Design: $150,000 $0 $0 $0 $150,000
Construction: $200,000 $300,000 $257,500 $1,030,000 $1,787,500
FY Total: $400,000 $300,000 $257,500 $1,030,000 $1,987,500
206
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Capital Improvements Program—CIB General Improvements Program
Cyber Security
Project Name Cyber Security Project No. 8248
Program.] General improvements Phase: Construction
Priority Rank: I Critical Ranking Score: 65
Purpose:
To assess cyber security threats and make annual improvements to Aging
cyber security controls. Infrastructure Capacity
Drivers:
Cyber security is the top threat facing business and critical Regulatory Sustainability
infrastructure in the United States, according to reports and
testimony from the Director of National Intelligence, the Federal
Bureau of Investigation, and the Department of Homeland {
Security (Source: American Water Works Association). Within
the last two decades, cyber security threats, including cyber
terrorism, have grown to a problem of concern. It is important
that Central San maintains a robust cyber security system to L
prevent against cyber terrorism.
Cyber security improvements will be required to enhance the
security and resiliencey of critical information technology
infrastructure,protect Central San data and critical systems by
deploying and maintaining appropriate security controls, and to
promote security awareness among Central San employees.
Description:
This is an annual program that will assess cyber security threats and implement improvements to cyber
security as necessary.
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Locatioll Central San-wide
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 $0 $0 $0
Construction: $75,000 $0 $103,000 $309,000 $487,000
FY Total: $75,000 $0 $103,000 $309,000 $487,000
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Capital Improvements Program—CIB General Improvements Program
E ui ment Acquisition
EquipmentProject Name .
Program: I General Improvements Phase: Construction
Priority Rank: I Very High Ranking Score: 55
Purpose:
To provide new, safe, and cost-effective equipment for operations
and maintenance of Central San facilities. Infrastructure Capacity
Drivers:
This project is developed as a multi-year program to procure new Regulatory Sustainability
equipment required for operations and maintenance of assets
throughout Central San.
Description:
This project is a multi-year program to procure new equipment such
as:
• Power Quality and Energy Analyzer ' ,-~
• Circuit Breaker and Overload Test Set
• Electric Cart and Shuttle
• Color Scope Meter Portable Oscilloscope
• Self-Priming Pump with Highway Trailer
• Self-Priming Pump
• Portable Generator Set
• Pump Trailer Mounted Package
Operating Department Impact and Funding Source:
This project will have an insignificant impact on the operating budgets. Project expenditures are funded
from Capital Revenues.
Location(s): Central San-wide
Proiect Budoet
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYsTotal
Planning: $0 $0 $0 $0 $0
Design: aso $0 M $0
Construction: $676,000 $200,000 $206,000 $1,030,000 $2,112,000
FY Total: $676,000 $200,000 $206,000 $1,030,000 $2,112,000
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Capital Improvements Program—CIB General Improvements Program
Vehicle Replacement Pro Iram
54 UFM
. .
Program: 3eneralImprovements Phase: Construction
Priority Rank: I Very High Ranking Score: 55
Purpose: _
Provide safe and cost-effective vehicle replacement.
Aging Capacity
Drivers: Infrastructure
Central San will budget and acquire vehicles under this
Regulatory Sustainability
project and use asset management principles and historic
replacement costs to provide an effective vehicle
replacement strategy. Staff, comprised of Engineering and
Operations, has forecasted approximately $7.4 million in
vehicle replacement from FY 2016-2026. A yearly budget
(average costs in FY 2016-2026 plan)will be used to fund
the project. Underspending in a year will result in a
carryforward to future years. This approach will also -�
recognize that due to long lead times, especially on 7i
specialized vehicles, the budget for this program can carry y
forward to the next fiscal year when delivery takes place.
_ J!
Description:
The following vehicles are scheduled in FY 2018-19:
• Tractor with Drag Box, Loader with Rotary Cuter _..,
• Truck Mounted Sewer Rodder
• Three Quarter-Ton 4x2 Van
• Half-Ton 4x4 Truck(3 Quantity)
• Dump Truck
• 4-Door Hybrid Passenger Car
• Midsize 4x4 Truck
Operating Department Impact and Funding Source:
This project will not have an impact on operating budgets. Project expenditures are funded from Capital
Revenues.
Locatioll Central San-wide
Project Buet
. .
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 0 $0
Construction: $1,199,000 $650,000 $772,500 $3,862,500 $6,484,000
FY Total: $1,199,000 $650,000 $772,500 $3,862,500 $6,484,000
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Capital Improvement Program—CIB Recycled Water Program
CIB — Recycled Water Program
Central San provides landscape irrigation water that meets all the requirements of the State Water
Resources Control Board's Division of Drinking Water and the San Francisco Regional Water Quality
Control Board for unrestricted landscape irrigation. Approved uses include irrigation at schools,parks,
playgrounds, median strips and playing fields, as well as dust control and industrial process uses.
Recycling water means less water is diverted from the Delta environment. Recycled water is a valuable
resource, especially during drought years when water for landscape irrigation is less available because of
water rationing.
In 1996 Central San and the Contra Costa Water District (CCWD)reached an agreement allowing
Central San to supply recycled water to specific areas of Concord and Pleasant Hill. That area is referred
to as Zone 1. About 200 million gallons of recycled water are used annually by irrigation customers,
including two golf courses, a community college, an elementary school, three middle schools, a high
school, and the City of Pleasant Hill. This project will ultimately deliver 1.5 million gallons per day for
irrigation use in the Pleasant Hill area. Central San will continue to collaborate with local water
purveyors to identify cost-effective landscape irrigation and industrial recycled water projects.
Central San currently produces over 600 million gallons per year of recycled water for use at the
treatment plant site, for irrigation customers, and for a range of commercial uses. Over 200 million
gallons per year of recycled water is provided to a variety of customers in Pleasant Hill, Concord, and
businesses near Central San's treatment plant in Martinez. Recycled water is used for landscape
irrigation at schools,parks,private businesses, golf courses, street medians, and for commercial
applications such as truck washing, concrete manufacturing, dust control, and toilet and urinal flushing.
Central San uses over 300 million gallons per year at the treatment plant for process water and landscape
irrigation for Central San properties. Central San continues to pursue several projects as described in the
following pages.
The major emphasis of the Recycled Water Program for the next fiscal year will be to begin planning
and preliminary design for improvements to Central San's existing recycled water treatment facilities
and related support facilities, to address aging infrastructure needs, and maintain reliable recycled water
service to customers and for use at Central San's treatment plant. Central San will also continue efforts
to add new cost-effective customers in Central San's Zone 1 service area,pursue outside funding
assistance (such as federal and state grants for all Central San recycled water projects), and work with
water supply agencies to develop recycled water supply alternatives, such as the Water Exchange
Project with CCWD and Santa Clara Valley Water District (SCVWD).
Example of Project Driver(s)
Each project is described on the following pages. Each project
Aging summary includes project name, description,purpose, operating
Infrastructure Capacity department impact and funding source, location,budgetary
information and drivers (i.e., what is the main impetus for a
project). The main driver(s) for each project is (are) identified by
Regulatory Sustainability highlighting in orange background color and bold text. Driver(s)
that is (are) not as significant or not relevant is (are) displayed in
gray.
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Capital Improvement Program—CIB Recycled Water Program
CIB Table 5 — FY 2018-19 Recycled Water Program Budget/Project Summary
r Project "IF '411W Budget-to- Total Project
Number Project Date FY 2018-19 FY 2019-20 Future FYs Cost
7306 Zone 1 Recycled Water $497,894 $35,000 $51,500 $103,000 $687,394
7346 Recycled Water Distribution System
Surge Analysis $155,000 $50,000 $0 $0 $205,000
7361 Filter Plant&Clearwell Improvements
$330,000 $2,457,000 $8,180,000 $11,393,000 $22,360,000
7365 ReW Clearwell Repairs $1,400,000 $300,000 $0 $0 $1,700,000
TBD* ReW Distribution System Renovations $0 $15,000 $60,000 $600,000 $675,000
Program
Total Programf $2,382,894 $2,857,000 $8,291,500 $12,096,000 $25,627,394
*A new project starting in FY 2018-19.
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Capital Improvement Program—CIB Recycled Water Program
Zone 1 Rec cled Water
i .
Program: Recycled Water Phase: !Construction
Priority Rank: I Very High Ranking Score: 50
Purpose:
To provide recycled water for landscape irrigation and other
identified users within the Zone 1 Project area, which includes Aging Capacity
Pleasant Hill and portions of Concord and Martinez. Infrastructure
Drivers: Regulatory Sustainability
In 2001, Central San completed the Zone 1 Implementation Plan
that provided estimated connection costs and revenues for
customers identified in the Zone 1 Project Agreement with Contra
Costa Water District. 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.
Central San staff evaluates potential new recycled water landscape
irrigation sites near the existing recycled water distribution
pipelines. New customers will continue to be added to the recycled
water distribution system where technically and economically
feasible.
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.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Zone 1 Recycled Water Distribution System- Pleasant Hill, Concord, Martinez
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $117,000 $0 $0 $0 $117,000
Design: 1b I $0 $0
Construction: $380,894 $35,000 $51,500 $103,000 $570,394
FY Total: $497,894 $35,000-F $51,500 $103,000 $687,394
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Capital Improvement Program—CIB Recycled Water Program
Rec cled Water ReW Distribution S stem Sur a Anal sis
Project Name ReW Distribution System Surge Analysis Project No. 7346
Program: Recycled Water I Phase: Planning/Design
Priority Rank: Critical Ranking Score: 65
Purpose:
To conduct a pressure transient and surge analysis of the Recycled
Water Distribution System. I Infrastructure Capacity
Drivers:
The Recycled Water Distribution System has experienced several Regulatory Sustainability
pipeline breaks over the last few years. An analysis of pressures
within the Recycled Water Distribution System during
different operating conditions is recommended to confirm
whether the existing recycled water surge tank is
adequately sized, given current recycled water demands .
and operations, and to optimize pumping operations and _
controls if required.
Description:
Several elements are included in the project:
• Monitor and evaluate pressure in the Recycled Water
Distribution System
• Evaluate the size and optimization of recycled water
surge tank and pumps
• Evaluate opportunities to manage pressure transients
• Hydraulic modeling of the distribution system
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Recycled Water Pumping, Zone 1 Recycled Water Distribution System
Budget
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $155,000 $50,000 $0 $0 $205,000
Design: $0 $0 $0 $0
Construction: $0 $0 $0 $0 $0
FY Total: $155,000 $50,000 $0 $205,000
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Capital Improvement Program—CIB Recycled Water Program
Filter Plant & Clearwell Improvements
. .
Program: Recycled Water Phase: Planning/Design
Priority Rank: Critical Ranking Score: 70
Purpose: r_TMZbrAT_
To rehabilitate and replace components of the existing Filter Plant V
recycled water facilities. Aging Capacity
Infrastructure
Drivers:
The recycled water facilities produce disinfected tertiary effluent Regulatory Sustainability
that meets Title 22 recycled water requirements and is used on-site
for utility water and is pumped offsite for various residential and _
commercial recycled water uses. The Filter Plant, Clearwell
structure, and related facilities were constructed in the mid-1970s.
The existing Filter Plant media has been partially replaced on a i
routine basis over the years. The last partial media replacement
effort was 15 years ago. The electrical and instrumentation
infrastructure is mostly original, showing signs of significant wear,
and requires replacement to ensure operational reliability.
Opportunities to minimize energy demands and reduce chemical
dosing requirements will be included in the rehabilitation project in
addition to replacing chemical piping, valves, and pumps that are in
poor condition.
Description:
The project includes the following major elements:
• Replacement of the Clearwell liner and east cell cover
• Rehabilitate and replace various electrical equipment(MCCs, switchgear, substation), and PLC's
• Replace filter media,backwash system, inspect and repair or replace filter underdrain system
• Replace or rehabilitate coagulant flash mixing, backwash gates, applied water valves, applied water
pumps, and other miscellaneous equipment and valves
• Replace sodium hypochlorite piping and pumps used for Title 22 disinfection compliance
• Replace Filter Plant alum coagulant feed pumps, piping, and storage tank
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Filter Plant and Clearwell Structure
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $330,000 $800,000 $0 $0 $1,130,000
Design: $0 $1,657,000 $800,000 $0 $2,457,000
Construction: $0 $0 $7,380,000 $11,393,000 $18,773,000
FY Total: I $330,000 $2,457,000 $8,180,000 $11,393,000 $22,360,000
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Capital Improvement Program—CIB Recycled Water Program
Recycled Water Clearwell Repairs
Project Name Recycled Water Clearwell Repairs Project No. 7365
Program: Recycled Water Phase: Construction
Priority Rank: Critical Ranking Score: 80
Purpose:
Commission the west cell of the Clearwell structure and perform ' Aging
repairs to the east cell as needed. Infrastructure
Capacity
Drivers:
Regulatory Sustainability
The Clearwell structure was installed in 1975. A cover was installed
on the east cell to reduce chlorine usage, prevent algae growth, and
maintain recycled water quality. The east cell cover has ,.
deteriorated rapidly in recent years. However, it is not feasible to
repair the east cell cover due to lack of redundancy. This project
will dewater, clean and dispose of solids from the west cell and -
install a new modular cover on the west cell to obtain
redundancy and ensure reliability of the recycled water supply
system.
Description:
The project includes the following major elements:
• Dewater, clean, and dispose of solids from the west cell
• Installation of a new modular cover on the west cell
• Repair east cell cover as needed
• Minor mechanical modifications to operate the west cell
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Clearwell Structure
Budget-to-Date FY 2018-19FY 2019-20 Future FYs Total
Planning: $0 $07 $$0 1 $0 $0
Design: $60,000 $0 $0 $0 $60,000
Construction: $1,340,000 $300,000 $0 $0 $1,640,000
FY Total: $1,400,000 $300,000 $0 $0 $1,700,000
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Capital Improvement Program—CIB Recycled Water Program
Recycled Water Distribution System Renovations Pro ram
ProgramProject Name Recycled Water Distribution System Project No. TBD
Renovations
Program: Recycled Water20000mr.se Construction
Priority Rank- Critical Ranking Score: 70
Purpose: 11
To replace or rehabilitate existing recycled water distribution Infrastructure Capacity
system facilities.
Drivers: Regulatory Sustainability
Central San's Recycled Water Distribution System consists of
approximately 13 miles of recycled water distribution r
piping,which includes several isolation valves, pressure
reducing valves, hydrants, flow meters, and other
connections and appurtenances. The Recycled Water x'
Distribution System includes pressured pipes installed
over various years ranging from the mid-1990s to 2015
that now serves over 30 customers. Eventual replacement
and/or rehabilitation of distribution system components
will be required to maintain reliable service to Central
San's Title 22 Zone 1 recycled water customers.
Description:
F
This project includes replacement and rehabilitation of
recycled
es, meters,
other
appurtenancesI. addition this protect w 11 include J
condition assessment and inspection of various recycled water distribution system assets.
Operating Department Impact and Funding Source:
The impacts to operational budgets have not yet been determined. Project expenditures are funded from
Capital Revenues.
Location(s): Zone 1 Recycled Water Distribution System- Pleasant Hill, Concord, Martinez
BudgetProject
Phase: Budget-to-Date FY 2018-19 FY 2019-20 Future FYs Total
Planning: $0 $0 $0 $0 $0
Design: $0 1 $0 $0 $0 $0
Construction: $0 $15,000 $60,000 $600,000 $675,000
FY Total: $0 $15,000 $60,000 $600,000 $675,000
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Ten-Year Capital Improvement Plan
(FY 2018 — FY 2027)
Overview
Central San has developed a Ten-Year Capital Improvement Plan(CIP) for capital facilities and
financing needs. It incorporates the recommendations from the June 2017 Comprehensive Wastewater
Master Plan(CWMP). The Ten-Year CIP is updated every year. Specifically, the plan identifies and
prioritizes capital projects needed to accomplish Central San's Vision, Mission, Values and Goals. It
also includes planning-level cost estimates for proposed projects and projections for the various sources
of revenue needed to meet the cash flow requirements. The principal purpose of the Ten-Year CIP is to
provide the Board with the information needed to formulate long-range policy regarding:
• Priority and Schedule—Identify,prioritize, and schedule the projects necessary to accomplish
Central San's Vision, Mission, Values and Goals.
• Financing—Plan for sufficient financial resources to complete the proposed projects.
The CWMP was a critical tool used by Central San to implement the following strategies from Central
San's Strategic Plan(FY2018-2020):
• Strive to Meet Regulatory Requirements by striving to achieve 100 percent permit compliance in
air, water, land and other regulations and by striving to minimize the number of sanitary sewer
overflows by continuing Best Management Practices.
• Embracing Technology,Innovation and Environmental Sustainability by reducing reliance on
non-renewable energy using sustainable practices that minimize waste, maximize resources, improve
the community, as well as encouraging the review and testing of technology to optimize and
modernize business operations.
• Maintain Reliable Infrastructure by managing assets optimally through their life cycle, by
facilitating long-term capital renewal and replacement, and by protecting Central San personnel and
assets from threats and emergencies.
The following Ten-Year CIP section provides a general description of the plan and a discussion of
potential,unbudgeted future capital projects. As projects develop and are prioritized, they are grouped
into the four programs (Treatment Plant, Collection System, General Improvements, and Recycled
Water Program) as shown in the CIB.
A brief description of each program and a list of major projects for the Ten-Year CIP are provided in the
Capital Improvement Plan sections for each of the four programs. In total, the estimated costs for all the
projects listed in the CIP is $805.7 Million.
Ten-Year CIP Budget Process
The Ten-Year CIP assumes that funds will be available to support the plan. These funds come from all
revenue sources as discussed in the Financial Overview section. The only two discretionary sources of
revenue are the sale of bonds or adjustment of the capital component of the SSC. The Board has not yet
determined whether to issue bonds to fund this planned program. The Ten-Year CIP is currently funded
on a year-by-year basis when the CIB for the upcoming fiscal year 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 CIP.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
2017 Comprehensive Wastewater Master Plan
The CWMP was completed in June 2017. A key deliverable of the CWMP was an updated Capital
Improvement Plan for the next 20-year planning horizon. The CWMP included descriptions, rationales,
and estimated costs for collection system and wastewater treatment plant capital improvement projects
and on-going programs to address aging infrastructure, meet existing and anticipated regulatory
requirements, accommodate planned growth, optimize energy use, and implement Central San's vision
for the treatment plant that is consistent with Central San's Strategic Plan.
The CWMP was also a critical tool for maintaining a high level of service, establishing long-term
fiscally responsible policies for our customers, and providing a clear direction for Central San. To
accomplish this, the CWMP:
• Confirmed CIP projects, costs, and site layouts for future facilities
• Identified linkages among the major capital improvement projects and repair and replacement
strategies such that the projects can be re-sorted and re-scheduled as changes in planning assumptions
and needs occur
• Identified triggers for implementing applied research (if applicable), preliminary design, design, and
construction of the recommended capital improvement projects to determine efficient"just-in-time"
project implementation
• Identified new or updated policies,programs, and guidelines for the Board considerations to address
overall program implementation including project prioritizations, implementation costs,project
delivery methods,potential funding sources, and an estimated schedule for implementing plan
elements
• Confirmed and incorporate operations, maintenance, and energy management strategies
• Accelerated and coordinated condition assessments with implementation of the asset management plan
and confirm long-term repair and replacement strategies
Some of these potential future projects identified in the CWMP are not currently included in the CIP.
Central San's CIP will be updated annually as projects are clarified. These future projects are not
included in the CIP and amount to about $920 million, of which approximately $510 million may be
within the next 20 years.
These projects include the following:
• Nutrient Removal BACWA Levels 2/3: Possibly beyond 20 years **
• Recycled Water Exchange (Refinery Recycled Water) Project- 20 MGD
• Advanced Treatment/Contaminants of Emerging Concern Removal **
• Renewable Energy Projects (triggered by increased power demands from nutrient removal) **
• Concord Community Reuse Project (CCRP) Recycled Water Facilities Improvements
• CCRP Collection System Improvements *
• CCRP Recycled Water Distribution System(Central San current plan is to wholesale recycled water,
so distribution system was not evaluated or included in CIP)
* Projects expected to be cost neutral to Central San.
** Projects identified but not currently required by regulations.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
Ten-Year CIP Drivers
Projects included in the CIP address one or more of the four major drivers for implementing capital
improvement projects: 1)Aging Infrastructure; 2)Regulatory; 3) Capacity; and 4) Sustainability. Most
project scopes include several project elements that address a range of drivers. Below is a description for
each of the four major drivers:
• Aging Infrastructure: This project driver describes projects required to maintain the performance and
reliability of existing assets to ensure reliable conveyance and treatment of wastewater. Central San
operates and maintains several billion dollars of assets, and several projects in each program have been
initiated or are in progress to meet the replacement or rehabilitation needs for our infrastructure. Most
of 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. Central San recognizes the need to address aging
infrastructure and has developed an Asset Management system.
• Regulatory: This project driver describes projects required to reliably comply with regulatory
requirements that are designed to protect human health and the environment, and includes planning
needed to anticipate potential future regulatory requirements. Regulatory drivers that may trigger
capital improvement projects include potential changes in future state and/or federal water, air, and
solids regulations. Potential regulatory drivers 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 micropollutants, 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
solids handling/management and disposal regulations; recycled water, including potential coordinated
projects with water agencies on Title 22, indirect, and even indirect or direct potable reuse
opportunities; and collection system regulatory requirements such as the reduction of sewer system
overflows (SSOs). Occasionally, improvements are also required to improve the reliability of existing
facilities to ensure 100 percent compliance with regulatory permits and to ensure protection of human
health and the environment.
• Capacity: This project driver describes projects required to increase capacity of existing facilities.
Capacity drivers that may trigger capital improvement projects include potential upgrades required to
mitigate hydraulic bottlenecks and increase capacity of existing facilities to accommodate wastewater
flows and loads. Projects that would be required to accommodate planned growth are not included in
the CIP.
• Sustainability/Energy/Optimization: This project driver describes projects to minimize life-cycle
costs, maximize benefits, and achieve economic stability through optimization, resiliency, resource
recovery, and energy projects. Sustainability drivers that may trigger capital improvement projects
include upgrades to strive towards net zero energy, recycled water projects to ensure the reliable
supply of recycled water for use at Central San and for use by Central San's customers, and upgrades
to improve the resiliency of Central San facilities. Improvements to strive towards net zero energy or
energy self-sufficiency include energy efficiency measures such as installing more energy efficient
equipment or treatment processes, and renewable energy projects such as solar or wind.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
Ten-Year CIP — Treatment Plant Program
The Treatment Plant Program includes projects that will address aging infrastructure needs, meet
regulatory requirements, address any hydraulic or process capacity deficiencies, and improve
sustainability or help meet sustainability related goals. The emphasis of the Ten-Year CIP—Treatment
Plant Program will be on the repair and replacement of aging treatment plant infrastructure, improving
existing facilities to ensure reliable compliance with increasingly stringent regulatory requirements,
improving the resiliency of existing facilities against security threats and natural hazards such as seismic
and flooding events, and improving overall energy efficiency.
Central San staff will continue to evaluate treatment alternatives and applied research projects and pilots
to address potential nutrient removal regulations; to confirm the optimal long-term solids handling
strategy; and to strive closer to net zero energy in support of Board Policy 027—Energy.
The following tables identify major projects in the Ten-Year CIP—Treatment Plant Program. The
projects have been grouped into one of three project categories: 1) Liquid Treatment Process; 2) Solids
Handling Process; or 3) General Treatment Plant and Safety Improvements.
Ten-Year CIP — Treatment Plant Program Projects:
Liquid Treatment Process
Implement improvements for wet
weather flow management and holding
Wet Weather Flow Headworks, Wet basin operation such as raw wastewater
Management 2020 to 2023 Weather Holding Basins diversion pipeline, drain back pumping,
sixth influent pump, and improved basin
grading and drainage.
Construct up to two additional primary
sedimentation tanks and corresponding
Primary Expansion 2023 to 2028 Pre-Aeration, Primaries new pre-aeration (grit removal)tank,
improve wet weather grit handling, and
replace primary sludge pumps.
If required by regulations, construct
chemically enhanced primary treatment
Nutrient Removal Primary Sedimentation and modify Aeration and Nitrification
Optimizations 2024 to 2028 TanksA/N Tanks tanks and secondary treatment process
(BACWA Level 1) , to operate in a seasonal
nitrification/denitrification treatment
mode during dry weather months.
Increase secondary treatment wet
weather capacity to accommodate 20-
Secondary Treatment Secondary Clarifiers, year wet weather storage event. This
Hydraulic 2024 to 2028 UV Channel, Final includes a mixed liquor flow split
Improvements Effluent Channel structure for the secondary clarifiers, up
to two additional secondary clarifiers,
and mixed liquor channel improvements
such as new gates.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
Project • • • •
Increase wet weather hydraulic capacity
through UV Disinfection and Final
Effluent Channel to accommodate
UV Hydraulic UV Channel, Final 20-year wet weather storage event. This
Improvements 2019 to 2021 Effluent Channel includes low lift pumps to alleviate UV
channel hydraulic bottlenecks and
installing a new parallel final effluent
pipe.
UV Disinfection Replace the aging existing UV
Replacement 2019 to 2024 UV Channel Disinfection process with a new, more
energy efficient UV Disinfection process.
Inspect the condition of several large
diameter, critical pipelines on the
treatment plant site such as primary
Condition Assessment effluent, mixed liquor, secondary
of Buried Pipelines 2019 to 2021 Treatment Plant effluent, final effluent pipelines, and wet
weather bypass pipelines. These
inspections will require complicated
shutdowns and temporary bypass
pumping and piping.
Inspect Outfall Pipe and make
Outfall Improvements— 2026-2028 Treatment Plant necessary repairs. This project will
Phase 8 require complicated shutdowns and
temporary bypass pumping and piping.
Energy Recovery and To replace and improve the existing
Blower Replacement Present to steam system, waste heat recovery,
and Ener Upgrades 2025 Treatment Plant steam turbines, and improve the
Energy pg
Project secondary treatment systems related to
aeration energy requirements.
Ten-Year CIP — Treatment Plant Program Projects:
Solids Handling Process
Project Title Year(s), Location Descriopticary
h�M6 Md L If
Rehabilitation of aging critical electrical
Energy Production Solids Conditioning infrastructure, replacement of the
Facility Improvements 2022 to 2026 Building cogeneration turbine will be required,
and other miscellaneous heat recovery
equipment will require upgrades.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
Ten-Year CIP — Treatment Plant Program Projects:
General Treatment Plant and Safety Improvements
Project Title Year(s) Location Descriptio%. IP
Programmable Logic Continued hardware and software
Controllers (PLC) Present through 2028 Treatment Plant replacement and upgrades to maintain
Systems Upgrades PLCs.
Continued planning to identify potential
capital improvement projects required
Treatment Plant Planning Present Treatment Plant to address aging infrastructure needs,
through 2028 regulatory drivers, capacity deficiencies,
and sustainability and optimization
opportunities.
Applied Research and Present Implement applied research projects
Innovations through 2028 Treatment Plant that evaluate promising and innovative
technologies and processes.
Surcharge Soil Pile Surcharge Pile, Basin Excavate and re-locate Surcharge Pile
Relocation 2020 to 2023 A South soils to Basin A South and replace soil
cap.
Complete an evaluation and
Treatment Plant SCADA implementation plan for upgrade and
Improvements 2019 to 2023 Treatment Plant replacement of the SCADA, PLCs, and
communications networks, and
determine workforce planning needs.
Complete resiliency evaluation of
Treatment Plant Network network system and evaluate needs for
Resiliency Evaluation 2023 to 2028 Treatment Plant redundancy in communications,
information systems, and process
control systems.
Fire Protection Continue phased upgrades and
System— Phases 3 2019 to 2022 Treatment Plant replacement of the fire alarm systems
through 6 throughout the treatment plant.
Implement upgrades to the Warehouse
Warehouse Seismic 2022 to 2025 Warehouse Building to meet current seismic design
Upgrades standards and improve overall seismic
safety.
Implement upgrades to the Laboratory
Laboratory Seismic 2022 to 2025 Laboratory Building Building to meet current seismic design
Upgrades standards and improve overall seismic
safety.
Filter Plant, UV, Implement seismic upgrades to
Miscellaneous Seismic 2022 to 2025 Headworks, Fuel Oil, miscellaneous structures and process
Upgrades Hypo Tanks,
Substations equipment around the treatment plant.
Treatment Plant Safety Continue to implement safety-related
Enhancements— Phases 2019 to 2028 Treatment Plant enhancements around the treatment
5 through 11 plant to proactively address safety
concerns.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
Project • • • •
This program will fund aging
infrastructure projects around the
treatment plant. Aging infrastructure
needs will continue to be packaged
Aging Infrastructure 2019 to 2028 Treatment Plant together and implemented as spinoff
Replacement Program capital projects from this program (for
example, piping replacement projects,
equipment replacement, and
electrical/instrumentation/control
systems rehabilitation).
Install user-friendly human machine
Plant Operations and interface (HMI)that integrates control
Laboratory Data 2019 to 2021 Treatment Plant system data and laboratory data for
Improvements improved process analysis, trending,
and optimizations.
Ten-Year CIP — Collection System Program
The Collection System Program includes projects that will address aging and deteriorating infrastructure
needs, meet regulatory requirements, address any capacity deficiencies, and improve sustainability or
help meet sustainability related goals. The emphasis of the Ten-Year CIP—Collection System Program
will be on rehabilitating and replacing deteriorating sewers, new development and sewer expansion by
developers within Central San's service area,upgrading aging pump stations, and implementing large
diameter and force main inspection programs. The inspection programs will help to update the condition
of existing infrastructure and to confirm the timing and cost of rehabilitation or replacement of large
diameter sewers and force mains. Overall, these projects are targeted at reducing the risk of SSO's in
Central San's collection system.
Central San staff will continue to update the new collection system hydrodynamic model (Info Works®)
to confirm the need and timing for future projects required to alleviate capacity deficiencies and to
determine sewer replacement needs.
The InfoMaster(&program uses CCTV inspection scoring results, sewer cleaning frequency data, pipe
age, and other information to assign a likelihood of failure score to each pipe segment in the collection
system. The consequence of failure for each pipe segment was determined using factors such as pipeline
size, flow conditions, proximity to waterways, hospitals, schools, and roads. The overall risk of each
segment based on the likelihood of failure and consequence of failure scores, and a decision matrix
developed through workshops with staff were used to prioritize the replacement of each pipe segment.
The InfoMaster®then helps to develop a long-term sewer replacement strategy or program based on the
timing/prioritization, and cost for sewer replacement needs. Staff will then work to group sewers of
concern geographically and bid as capital projects.
The following tables identify major projects in the Ten-Year CIP— Collection System Program. The
projects have been grouped into one of five project categories: 1) Collection System Rehabilitation and
Replacement(R&R); 2) Pump Stations; 3) Regulatory Compliance; 4) Collection System Expansion;
and 5) Contractual Assessment Districts (CADS) and Development Sewerage.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
Ten-Year CIP — Collection System Program Projects:
Collection System R&R
. 12MV
Manhole Modification Present This program will fund manhole
Project through 2028 Collection System modifications and replacement
throughout the collection system.
Present Implement pipe bursting repair projects
Pipe Bursting Contract through 2028 Collection System to address pipelines that require
immediate action.
Present Implement cured-in-place (CIPP) repair
CIPP Contract through 2028 Collection System projects to address pipelines that
require immediate action.
This program will fund rehabilitation and
replacement of aging sewers
throughout the collection system. Aging
Collection System Sewer 2023 to 2028 Collection System infrastructure needs will continue to be
Renovation— Phase 2 identified, prioritized by risk, and
packaged into capital projects by
geographical areas throughout the
collection system.
Ten-Year CIP — Collection System Program Projects:
Pump Stations
Project Title Location Description.
Rehabilitation and replacement of
miscellaneous pumps, piping, valves,
Pump Station Upgrades Present Martinez, Fairview and and other equipment identified in the
—Phase 2 through 2026 Maltby Pump Stations field. Acquire necessary pump station
emergency response equipment and
critical spare parts.
Pump Station PLC 2021 to 2023 Miscellaneous Pump Upgrade outdated PLC software
Upgrades Stations language for all pump stations.
Buchanan North and Implement major pump station
Pump Station 2020 to 2023 South, Concord upgrades to address structural,
Improvements Industrial, and Other mechanical, electrical, instrumentation,
Pump Stations and other improvements.
Ten-Year CIP — Collection System Program Projects:
Regulatory Compliance
LocationProject Title Descriptiollp-ml
Continued planning to identify potential
capital improvement projects required
Collection System Present Collection System to address aging infrastructure needs,
Planning through 2028 regulatory drivers, capacity deficiencies,
and sustainability and optimization
opportunities.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
Year
Project Title Location Description
Continued build-out of the collection
Collection System Present system modeled network to include
Modeling Support through 2028 Collection System areas of planned development, and
other major upgrades and updates to
the hydraulic model.
Phased inspection program for large-
Large Diameter Pipeline Present Collection System diameter trunks and interceptors to
Inspection Program through 2028 update condition and prioritize
rehabilitation and replacement needs.
Force Main Inspection Present Phased inspection program for force
Program through 2028 Collection System mains to update condition and prioritize
rehabilitation and replacement needs.
Implement miscellaneous relief projects
Wet Weather Capacity 2020 to 2028 Collection System for sewers identified by the collection
Improvements system hydraulic model as having wet
weather hydraulic capacity deficiencies.
Ten-Year CIP — Collection System Program Projects:
CADS and Development Sewerage
CNEW I=W M . . W.
Development Sewerage Present Capitalized staff labor and expenses for
Support through 2028 Central San-wide the survey, right-of-way for construction
of developer installed sewer facilities.
Ten-Year CIP — General Improvements Program
The General Improvement Program includes projects that will address aging infrastructure needs, meet
regulatory requirements, and improve sustainability or help meet sustainability related goals. This
includes implementing property and building improvements, addressing equipment needs, acquiring new
properties if required, completing development of the Asset Management Program, information
management system and data management system upgrades, general security improvements
enhancement, and cyber security. Many of Central San's building are over 25 years of age and are
starting to require general building upgrades to both the interior and exterior of the buildings such as
painting, replacing ceiling tiles, upgrading fixtures, replacing roofs, replacing worn furniture and other
equipment, and upgrading buildings to meet current seismic standards. The emphasis of the General
Improvement Program for the Ten-Year CIP will be on upgrading many of those aging buildings. In
addition, Central San will continue to require routine acquisition of new equipment, vehicle
replacement, security improvements, and information technology improvements, and improved cyber
security enhancements.
The following tables identify major projects in the Ten-Year CIP—General Improvements Program. The
projects have been grouped into one of three (3)project categories: 1) Vehicles and Equipment
Acquisition; 2) Buildings and District Property; and 3) Information Technology Development.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
Ten-Year CIP — General Improvements Program Projects:
Vehicles and Equipment Ac uisition
Project Title—
w
Present Acquisition of new equipment for
Equipment Acquisition through 2028 Central San-wide operation and maintenance of Central
San assets.
Vehicle Replacement Present Central San-wide Continued replacement and acquisition
Program through 2028 of new Central San vehicles.
Ten-Year CIP — General Improvements Program Projects:
Buildings and District Property
Project Title 111 1 0
Improvements to Central San's
Property and Building Present Central San-wide buildings, buffer properties, rental
Improvements through 2028 properties, and the surrounding parking
lots and grounds.
Improve or acquire new property land
District Easement Present Central San-wide rights for existing or new sanitary
Acquisition through 2028 sewers that are located on private
properties.
General Security and Present Continued implementation of general
Access through 2028 Central San-wide security improvements for Central San
buildings and properties.
Ten-Year CIP — General Improvements Program Projects:
Information Technology Development
. �
Information Technology Present Central San-wide Continued implementation of Central
Development through 2028 San-wide IT improvements.
Present Improvements to enhance cyber
Cyber Security through 2028 Central San-Wide security and resilience of critical
information technology infrastructure.
Ten-Year CIP — Recycled Water Program
The Recycled Water Program includes projects that will address aging infrastructure needs, meet
regulatory requirements, address any capacity deficiencies, and improve sustainability or help meet
sustainability related goals. The emphasis of the Ten-Year CIP—Recycled Water Program will be on
continued expansion of the Zone 1 Recycled Water Program in support of Board Policy 019 - Recycled
Water, implementing improvements to the existing recycled water filter plant and related support
facilities to address aging infrastructure to ensure reliable supply of recycled water, replacing and
installing new clear well liner and covers, and initiating ongoing rehabilitation and replacement of
recycled water distribution system assets.
Central San staff will continue to explore and plan for other potential recycled water projects and related
improvements and expansions that may be required. These other projects will likely involve the
wholesale of recycled water to a water purveyor. The following table identifies major projects in the
Ten-Year CIP— Recycled Water Program.
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Capital Improvement Program—Ten-Year Capital Improvement Plan
Ten-Year CIP — Recycled Water Program Projects:
I
Continue to expand Zone 1 Recycled
Water Program, where cost-effective,
Zone 1 Area within for landscape irrigation at schools,
Zone 1 Recycled Water Present to Concord, Martinez, parks, private businesses, golf courses,
2028 and Pleasant Hill street medians, and for commercial
applications such as truck washing,
concrete manufacturing, dust control,
and toilet and urinal flushing.
Implement a recurring rehabilitation and
Recycled Water Zone 1 Area within replacement program for recycled water
Distribution System 2019 to 2028 Concord, Martinez, distribution system assets such as the
Renovations and Pleasant Hill recycled water surge tank, distribution
piping, valves, and flow meters.
Ten-Year CIP Expenditures
The Ten-Year CIP provides a basis for policy decisions concerning Central San's long-range Capital
Improvement Program and management of the Sewer Construction Fund. The Ten-Year CIP also serves
as the capital improvement expenditure basis for performing the fee analysis.
This plan includes projected expenditures totaling $805.7 million (in 2018 Dollars) over the w period
from FY 2018-19 through FY 2027-28. A summary of the planned expenditures by program, without
inflation, for the Ten-Year CIP is included in the Table 1 on the next page.
/ 'v� e,e Deme is R.a rt
ene
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Illustration of a Potential Central San Treatment Plant of the Future
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Table 1 -Ten Year Program Estimated Expenditure (2018-2028) -Summary by Program (in 2018 Dollars)
iFY 2019- FY
i i -25
-
20 0 in d
1 2 3 4 5 6 7 8 9 10 Unescalated
Mir
Liquid Treatment Process $2,686,000 $7,223,570 $9,147,430 $19,940,800 $26,205,260 $22,713,560 $19,679,180 $22,336,580 $35,350,630 $19,486,570 $184,769,580
Solids Handling Process Treatment $5,765,000 $11,975,630 $26,983,940 $24,823,000 $8,820,920 $3,965,500 $10,336,050 $4,120,000 $0 $0 $96,790,040
General Treatment Plant Improvements and Safety $8,414,000 $19,314,045 $16,378,545 $24,692,448 $22,029,898 $10,208,845 $7,605,520 $8,301,800 $12,301,290 $17,400,820 $146,647,211
Total Ten -Year CIP for Treatment Plant Program $16,865,000 $38,513,245 $52,509,915 $69,456,248 $57,056,078 $36,887,905 $37,620,750 $34,758,380 $47,651,920 $36,887,390 $428,206,831
Collection System Replacement and Rehabilitation (R&R) $16,000,000 $18,241,300 $18,591,500 $17,973,500 $22,299,500 $22,917,500 $22,299,500 $22,299,500 $22,917,500 $26,419,500 $209,959,300
Pump Stations $2,797,000 $6,376,478 $14,784,986 $10,017,033 $17,385,076 $7,456,041 $487,844 $154,500 $154,500 $154,500 $59,767,958
Regulatory Compliance $300,000 $1,176,260 $1,651,090 $4,807,010 $1,486,290 $2,330,890 $5,623,800 $13,069,670 $3,702,850 $2,051,760 $36,199,620
Contractual Assessment Districts (CADs) - Development Sewerage $250,000 $309,000 $309,000 $309,000 $309,000 $309,000 $309,000 $309,000 $309,000 $309,000 $3,031,000
Total Ten -Year CIP for Collection System Program $19,347,000 $26,103,038 $35,336,576 $33,106,543 $41,479,866 $33,013,431 $28,720,144 $35,832,670 $27,083,850 $28,934,760 $308,957,878
Future Recycled Water Development Planning $15,000 $77,250 $79,568 $81,955 $84,413 $86,946 $89,554 $92,241 $95,008 $97,858 $799,791
Existing Zone -1 $35,000 $51,500 $51,500 $51,500 $51,500 $51,500 $51,500 $51,500 $51,500 $51,500 $498,500
Existing Recycled Water Treatment Facilities R&R $2,807,000 $8,240,000 $8,240,000 $3,090,000 $0 $0 $0 $0 $0 $0 $22,377,000
Total Ten -Year CIP for Recycled Water Program $2,857,000 $8,368,750 $8,371,068 $3,223,455 $135,913 $138,446 $1419054 $143,741 $146,508 $149,358 $23,675,291
Vehicles Replacement $650,000 $772,500 $772,500 $772,500 $772,500 $772,500 $772,500 $772,500 $772,500 $772,500 $7,602,500
Equipment Replacement $200,000 $206,000 $206,000 $206,000 $206,000 $206,000 $206,000 $206,000 $206,000 $206,000 $2,054,000
Buildings and District Property $850,000 $412,000 $412,000 $412,000 $412,000 $412,000 $412,000 $412,000 $412,000 $412,000 $4,558,000
Capital Legal Services $20,000 $20,600 $20,600 $20,600 $20,600 $20,600 $20,600 $20,600 $20,600 $20,600 $205,400
Asset Management Program Development $400,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $400,000
Information Technology Development $2,630,000 $2,523,500 $1,184,500 $978,500 $978,500 $463,500 $463,500 $463,500 $463,500 $463,500 $10,612,500
Total Ten -Year CIP for General Improvements Program $4,750,000 $3,934,600 $2,595,600 $2,389,600 $2,389,600 $1,874,600 $1,874,600 $1,874,600 $1,874,600 $1,874,600 $25,432,400
Program Contingency $1,500,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $19,500,000
Total Ten -Year CIP Program $45,319,000 $78,919,633 $100,813,158 $110,175,846 $103,061,458 $73,914,382 $70,356,548 $74,609,391 $78,756,878 $69,846,108 $805,772,400
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Debt Program
Debt Program
Since 2009, Central San has utilized a pay-as-you-go philosophy for capital expenditures. In 2009, and
in some earlier years, Central San utilized long-term financing through obligations issued by the Central
Contra Costa Sanitary District Facilities Financing Authority. The 2009 obligations (certificates of
participation) were issued for the purpose of providing funding for new capital expenditures and to
refinance existing debt. Such financial obligations are referred in this document to as bonds or debt.
Central San's Debt Service is presently funded by ad valorem tax and interest income. Debt service is
projected at $3.6 million, a reduction from$3.8 million in Fiscal Year 2017-18 due to the repayment of
the outstanding Reclamation Loan in FY 2017-18. Table 1 summarizes the Debt Service sub-fund
Budget.
Central San anticipates utilizing long-term financing in FY 2019-20 to finance projects outlined in the
Ten -year CIP, including those specified in the Comprehensive Wastewater Master Plan. A new Debt
Management and Continuing Disclosure Policy was adopted during FY 2017-18, which specifies the
conditions under which debt and other forms of external financing can be used.
Table 1 - Debt Service Fund Budget Summary
BudgetFY 2016-17 FY 2017-18 FY 2018-19
'Debt Service Sub-Fund Actual Budget
Debt Service Revenue:
Reserve Account Bond Interest Income $49,436 $45,700 $82,447
Ad Valorem Tax(portion allocated to Debt Service) $3,741,719 $3,773,399 $3,528,591
Total Revenue $3,791,155 $3,819,099 $3,611,038
Debt Service Expense
2009 Bond Interest Payment and Amortized Costs,Less Subsidy on BABs $1,275,346 $1,198,221 $1,103,530
Reduction of tax subsidy due to congressional sequestration $28,690 $28,759 $27,508
Recycled Water Loan Interest Payment $9,363 $4,742 $0
Total Interest Payment and Amortization Costs $1,313,399 $1,231,722 $1,131,038
2009 Bond Principal Payment $2,300,000 $2,405,000 $2,480,000
Recycled Water Principal Payment $177,7561 $182,377 $0
Total Principal Payments $2,477,756 $2,587,377 $2,480,000
Total Debt Service Interest,Amortized Cost and Principal Payments $3,791,155 $3,819,099 $3,611,038
2009 Bonds/Certificates of Participation
The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B (Bonds) were issued
for$19.6 million and $34.5 million, respectively,on November 12,2009 and on December 3,2009.
The proceeds were used in part to finance new capital expenditures ($17,254,775 of Series A and
$12,745,225 of Series B), to refund previous debt ($20,225,275 of Series B), and to pay costs of
issuance. The Series A Bonds are federally taxable Build America Bonds (BABs), which have a rate
subsidy from the federal government. Coupons on this series range from 5.20%to 5.70%, while yields
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 issuances and raise an additional $30.0 million in new
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Debt Program
proceeds, with coupons ranging from 4.00% to 5.00% and yields ranging from 0.40%to 3.79%.
The two bonds total $54.1 million and are secured by a pledge of tax and net revenues of the
wastewater system. Both bonds will be fully amortized on September 1, 2029.
Reclamation Loan
In FY 2017-18, Central San paid the final installment on a $2.9 million loan from FY 1998-99 with the
California State Water Resources Control Board(SWRCB). The loan advanced Central San funds for
the design and construction costs for projects related to recycled water treatment programs. Central
San repaid advances from the SWRCB over a 20-year period ending in FY 2017-18.
Figure 1 and Table 2 summarize Central San's debt service obligations. Figure 1 shows debt service
on currently outstanding debt. Central San is projecting a bond issuance during FY 2019-20.
Figure 1 - Debt Service by Type
$7,000,000 —
$6,000,000 —
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0 '
O� oil Ci (Sy O'S 4�) 01 (ZP 1:1/ ,y') ,y� ,y'� y� .�'y .ti'S 'Lh -,A, tiO
O� OV �F 00 OI ODS OrO OI ,yO ,'L y0� tiO tiV ,yO ,1'L ,y0� tiV ti�
,yoi yoi tiO ,yO ,yO ,tiO ,tiO ,yO ,yO ,yO ,tiO ,tiO ,tiO ,LO ,tiO ,tiO ,tiO ,yO
■ 1994/1998/2002 Refunding Revenue Bonds ■2009 Bonds ■ Recycled Water Loan
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Debt Program
Table 2 - Debt Summary
1994/1998/2002 Refunding Revenue Bonds 2009 Bonds Recycled Water Loan
Total Total Total
Amortization Debt Amortization Debt Debt
Fiscal Year Principal Principal Principal Interest
&Interest Service &Interest Service Service
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 $187,119
1999-00 $725,000 $1,221,898 $1,946,898 $114,900 $72,219 $187,119
2000-01 $1,245,000 $1,181,356 $2,426,356 $117,887 $69,232 $187,119
2001-02 $1,285,000 $1,195,057 $2,480,057 $120,952 $66,167 $187,119
2002-03 $1,330,000 $1,832,680 $3,162,680 $124,097 $63,022 $187,119
2003-04 $1,375,000 $1,790,547 $3,165,547 $127,323 $59,796 $187,119
2004-05 $1,995,000 $1,719,372 $3,714,372 $130,634 $56,486 $187,119
2005-06 $2,060,000 $1,641,214 $3,701,214 $134,030 $53,089 $187,119
2006-07 $2,135,000 $1,559,500 $3,694,500 $137,515 $49,604 $187,119
2007-08 $2,210,000 $1,472,113 $3,682,113 $141,090 $46,029 $187,119
2008-09 $2,300,000 $1,379,326 $3,679,326 $144,759 $42,360 $187,119
2009-10 $2,390,000 $190,068 $2,580,068 $1,255,607 $1,255,607 $148,522 $38,597 $187,119
2010-11 $3,460,000 $2,027,168 $5,487,168 $152,384 $34,735 $187,119
2011-12 $3,465,000 $1,888,601 $5,353,601 $156,346 $30,773 $187,119
2012-13 $3,605,000 $1,775,376 $5,380,376 $160,411 $26,708 $187,119
2013-14 $3,720,000 $1,941,016 $5,661,016 $164,582 $22,538 $187,119
2014-15 $3,865,000 $1,474,513 $5,339,513 $168,861 $18,258 $187,119
2015-16 $2,210,000 $1,375,080 $3,585,080 $173,251 $13,868 $187,119
2016-17 $2,300,000 $1,275,346 $3,575,346 $177,756 $9,363 $187,119
2017-18 $2,405,000 $1,198,221 $3,603,221 $182,377 $4,742 $187,119
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
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.
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Debt Program
Externally Imposed Debt Limits
Central San, as a Sanitary District, is subject to certain limits on the direct issuance of bonds payable
from proceeds of taxes levied on taxable property in the district. Total bonds issued by the District
cannot exceed 15-20% (depending on some factors) of the assessed value of real and personal property
in the district(Health and Safety Code Section 6651). Bond issuances of this nature would require an
election with 2/3 voter approval (H&S Code 6644). Central San has no bonds subject to this limitation
outstanding. Refunding bonds are not subject to the limitation and election requirement.
Central San has most recently in 2009 (and previously in 1994 and 2002) financed a portion of its capital
improvements through the use of a financing authority(a"joint powers authority(JPA)"), using a form
of an Installment Sale Agreement with a similar payment structure as a bond. In such an arrangement,
the financing authority issues bonds or certificates of participation, with the Installment Sale Agreement
supporting the JPA bonds (payments on the Installment Agreement received by the JPA pay the JPA's
bonds). This structure is typical for California special districts and is not subject to the bond election
and debt limits described in the preceding paragraph.
While external financing of the capital program is not anticipated for FY 2018-19, in future years
Central San anticipates financing a portion of its capital improvement program through the financing
authority structure used in 2009.
Agency Debt Limits
A Debt Management and Continuing Disclosure Policy adopted during FY 2017-18 specified the
conditions under which debt and other forms of external financing can be used. This policy is intended
to cover both Central San and the Central Contra Costa Sanitary District Facilities Financing Authority,
for"debt" in a broad sense, as well as other external financial obligations as an Installment Sale
Agreement, which is not a bond and technically is not considered a debt. This policy (Board Policy 029)
provided certain guidance on the use of debt and financial obligations, as follows:
Debt Management and Continuing Disclosure Policy
Standards for Use of Debt Financing
The District shall integrate its debt issuances with the goals of its Capital
Improvement Program by timing the issuance of debt to ensure that
projects are available when needed in furtherance of the District's public
purposes (as articulated in, inter alia, the District's mission, vision and
goals) and are consistent with the rate and financial planning parameters
specified in the District's long-term financial plans. The Board shall be
presented with a long-term financial plan in each instance Sewer Service
Charge rates are to be adjusted.
1. The long-term financial plans will specify an expected debt issuance
amount over a decade or more long-term planning horizon.
a. The District shall target rate or tax revenue funding of, at a
minimum, the value of the collection system replacement program
(specifically,pipeline replacement) component of the CIP.
b. Not more than 60% of the overall CIP shall be financed with debt.
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Debt Program
2. All projects in the CIP are eligible to use debt financing, so long as the
minimum rate or tax revenues are generated as described in this section.
This policy does not contemplate the use of debt financing to fund
ongoing operating &maintenance expenditures; exceptions beyond a
de minimis amount would require approval of the Board.
With respect to debt repayment and amortization, the debt repayment
period should be structured so that the weighted average maturity of the
debt does not exceed 100% of the expected average useful life of the
project being financed.
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Supplemental Data and Glossary
Supplemental Data and Glossary
District Profile'
Central San is proud to serve its customers in the San Francisco Bay Area, specifically, in the Central
Contra Costa(Central County) region, at the heart of Contra Costa County about 30 miles northeast of
San Francisco. Our service area is located at the foot of Mount Diablo (3,849 feet), which hosts a
90,000-acre State Park and foothills whose numerous hiking trails and open space preserves are
frequently used by our residents.
The desired residential communities are also some of the most historic. Martinez, where our
headquarters is located, was a key crossing point over the Carquinez Strait for the Pony Express, and its
downtown is notable for a large number of preserved historic buildings, including the John Muir
National Historic Site. A short distance away, Walnut Creek boasts a revitalized shopping district with
retailers and restaurants, one of many newer urban centers in our community. One of our largest
customers, the City of Concord, is working on converting a former Naval weapons station into a
Community Reuse Project, including the construction of parks, housing, office, and retail and the
restoration of Mt. Diablo Creek. Central San is proud to be part of the effort to make the project as
sustainable as possible by supplying recycled water for irrigation in this development.
In recent years, the population of our service area in the Central County has boomed, partially due to
our accessibility to San Francisco and Silicon Valley via public transit. Most of the population of
Central Contra Costa lies along the busy I-680 corridor that connects the North Bay to Silicon Valley.
Below is a table that shows the steady increase in population over the last ten years.
Service Area Demographic and Economic Data
BoundariesAs of Inside District Concord Total Served % Change
January 1
2008 317,340 134,560 451,900 0.7%
2009 322,200 134,000 456,200 1.0%
2010 326,600 135,400 462,000 1.3%
2011 321,800 1 133,600 455,400 -1.4%
2012 326,900 134,200 461,100 1.3%
2013 332,600 134,900 467,500 1.4%
2014 335,009 135,856 470,865 0.7%
2015 339,029 137,357 476,386 1.2%
2016 340,667 140,916 481,583 1.1%
F2017 344,591 139,654 484,2457- 0.6% 1
1 Adapted from http://www.eastbayeda.org/our-region/central-contra-costa.page
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Supplemental Data and Glossary
Population by Community
2016As of 2010
January 1 Census Estimated
r Population
Alamo 14,570 16,078
Clayton I 10,897 11,655
Concord 122,067 126,938
Danville I 42,039 43,758
Lafayette 23,893 25,381
Martinez 35,824 37,544
Moraga 16,016 16,977
Orinda 17,643 I 18,936
Pleasant Hill I 33,152 34,395
San Ramon 72,148 74,366
Walnut Creek 64,173 67,568
Total Service Area
(named cities
above; actual 452,422 473,596
service area
population differs)
Contra Costa I 1,049,025 1,135,127
County Total
* Source:
https:Hfactfinder.census.gov/faces/tableservices/j sf/pages/productview.xhtml?src=bkmk
Our largest customers are the City of Concord and various businesses, shopping centers,residential
communities, schools, and hospitals. The tables below provide a window into our customer base.
Fiscal Year 2016-17 Ten Largest Customers
off-
--,--F�perating Revenue Rank % of
4= Operating Revenue of Concord' $13,851,253 1 15.63%
Contra Costa County General Service 2. 547,943 2 0.62%
First Walnut Creek Mutual 462650 3 0.52%
Park Regency Apartments 434,404 4 0.49%
Second Walnut Creek Mutual Apartments 365,250 5 0.41%
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Supplemental Data and Glossary
John Muir Health2 322,601 6 0.36%
Sun Valley Mall 298,005 7 I 0.34%
San Ramon Unified School District 225,339 8 0.25%
Branch Creek Vista Apartments 194,800 9 0.22%
Kaiser Foundation Hospital2- 186,281 10 0.21%
Total $16,888,526 19.06%
'Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
2 Contra Costa County General Services,John Muir Health,and Kaiser are permitted industries.
Active Service Accounts
GroupNumber of 2016-2017 Residential Unit
User TotalAccounts Equivalents
Charge Billings
Residential 113,045 $68,963,633 137,105 81%
Mixed Use 213 2,669,727 5,308 3%
Office 772 2,330,477 4,633 3%
Food Service 234 2,120,572 4,216 2%
Hotel/Motel 22 1,180,440 2,347 1%
Government 174 87,0631 1,731 1%
Market/Supermarket 48 851,179 1,692 1%
Schools 251 841,767 1,673 1%
Businesses 429 726,188 1,444 1%
Automotive/Car Wash 241 630,563 1,254 1%
Recreation/Entertainment 103 562,221 1,118 1%
All Other User Groups 872 3,541,980 7,042 4%
Total 116,404 $85,289,379 169,561 100%
In Contra Costa County, the majority of which we serve, the largest employers are as follows:
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Supplemental Data and Glossary
2017 Ten Largest Employers in Contra Costa Count
EmployersEstimated %of
AL
Employment
Chevron Corporation 10,000+ 1 1.88%
Bay Alarm Company 1,000-4,999 T-2 0.56%
St. Mary's College 1,000-4,999 T-2 0.56%
Bio-Rad Laboratories 1,000-4,999 T-2 0.56%
Job Connections 1,000-4,999 T-2 0.56%
John Muir Medical Center 1,000-4,999 T-2 0.56%
Kaiser Permanente 1,000-4,999 T-2 0.56%
La Raza Market 1,000-4,999 T-2 0.56%
Martinez Medical Offices 1,000-4,999 T-2 0.56%
FuSS-POSC0 Industries 1,000-4,999 T-2 0.56%
AAA Northern California, Nevada and Utah 5,000-9,999 T-2 0.56%
Bay Area Rapid Transit 1,000-4,999 T-2 0.56%
All Others 495,400 91.96%
Total 532,400 100.00%
Mirroring our service area growth, Contra Costa County's population has seen a steady increase, as
shown in the table below.
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Supplemental Data and Glossary
Demographic and Economic Statistics in Contra Costa County —� Average Annual
UnemploymentFiscal Year Ended Population' Personal Income'- Per Capita
June 30 Personal Income - Rate 2-
2007 1,009,152 $59,823,135,000 $59,281 4.7%
2008 1,023,344 61,470,268,000 60,068 6.3%
2009 1,037,890 56,442,667,000 54,382 10.8%
2010 1,052,875 56,594,058,000 53,752 11.3%
2011 1,066,126 61,156,431,000 57,363 10.4%
2012 1,078,242 66,344,299,000 61,530 9.0%
2013 1,094,030 66,607,757,000 60,883 7.4%
2014 1,108,996 69,818,812,000 62,957 6.2%
2015 1,123,231 76,517,699,000 68,123 5.0%
2016 1,135,127 80,412,324,000 70,840 4.4%
1. Source:U.S.Department of Commerce,Bureau of Economic Analysis,estimates for 2010-2016 reflect county
population estimates available as of April 2018.
2. Source: State of California,Employment Development Department(EDD),annual calendar figure.
As shown in the above tables, the area in which we operate is a growing community which we are
honored to provide our core services, as well as educational messaging to instill the environmental
values which are foundational to us as an organization.
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Supplemental Data and Glossary
Glossary of Terms
Accrual Basis of The basis of accounting under which transactions are recognized when they occur,
Accounting regardless of the timing of related cash flows. An example of accrual basis is occurs when an
invoice is sent out for services: a receivable is booked and revenue is recorded even though
no cash has been received at the time the invoice is mailed to the customer. (See Cash
Basis of Accounting and Modified Accrual Basis of Accounting.)
Administration District-wide and department operations costs incurred by administration support functions
of Capital which are not directly charged to each capital project but allocated using a rate applied to
direct labor dollars.
Ad Valorem Tax Also referred to as Property Tax. A tax based on the assessed value of taxable property.
Central San receives a portion of the ad valorem taxes levied by Contra Costa County on
properties in the service area.
Adopted Budget A balanced financial plan for a specific period authorized by the Board for expenditure or
obligation.
Amended An adopted balanced financial plan reflecting budgetary transfers that occurred since
Budget adoption of the budget. The total budget amount must stay within the Board-approved
appropriation limit.
Appointment Indicates the character of a position. The following are examples of appointment types for
Type Central San: Regular, District Temporary, and Consultant.
Arbitrage Borrowing in one market (such as bonds) at one interest rate and investing in another market
(such as certificates of deposit)at a higher interest rate. Such activities are highly restricted
by the federal government, and any excess interest earned in this manner is not tax-exempt
and is subject to rebate to the Federal Government.
Asset An economic resource owned by the entity that is expected to benefit future operations.
Examples of assets are: cash, investments, receivables, and capital or fixed assets.
Authorized A position created and established by the Board.
Position
Balance Sheet See Statement of Net Assets, the current term.
Board of The five public officials elected represent the District service area. Also known as the Board.
Directors
Bonds A written promise to pay a sum of money (principal or face value) at a future date (maturity
date) along with a periodic interest amount paid at a specified percentage of the principal
(interest rate). Bonds are typically used to finance long-term capital improvements. Debt
service payments are made to repay the bond holders. Central San's goal is to limit debt-
funded capital to no more than 60% of the total Capital Program over a ten-year period.
Budget A plan of financial operation, embodying an estimate of proposed expenditures for a given
period (typically a fiscal year) and the proposed means of financing them (revenue
estimates).
Build America A type of municipal bond created under the American Recovery and Reinvestment Act of
Bonds (BABs) 2009. These bonds are sold at a taxable rate rather than a lower tax-exempt rate, and
Central San receives cash rebates from the U.S. Treasury to offset the higher interest cost.
Capacity Fee Also called Facility Capacity Fee, this is a charge paid at the time of connection to
compensate Central San for capital facilities that provide wastewater treatment(i.e.,
interceptors, primary and secondary treatment facilities, and wet weather treatment plants)to
new connections. See Connection Fees and Pumping Capacity Fees.
Capital Referring to the Sewer Construction Fund.
Capital Board-approved funding for capital reference projects for which relatively accurate time
Appropriation estimates can be made. Unspent appropriations carry forward to the next fiscal year.
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Capital Assets Land, improvements to land, easements, buildings, building improvements, vehicles,
machinery, equipment, works of art and historical treasures, infrastructure, and all other
tangible or intangible assets that are used in operations and that have initial useful lives
extending beyond a single reporting period.
Capital Budget A financial plan for providing the purchase, construction, or rehabilitation of fixed assets such
as equipment, facilities, and systems. The capital budget is usually enacted as a part of the
complete annual budget, which includes both operating and capital outlays. The capital
budget should be based on a longer-term capital improvement program (CIP).
Capital Cash Projected cash disbursements for capital projects for a given time period. The estimated
Flow capital cash flow is used to determine the amount of revenue required and the rate impacts,
or the amount and timing of borrowings to meet the projected expenditure needs for a given
time period.
Capital Expenditures related to the purchase or construction of equipment, building structures,
Expenditures aqueducts, and water/sewer pipelines that have a useful life greater than one year and a cost
greater than $5,000.
Capital A plan for capital expenditures to be incurred each year over a fixed period of several future
Improvement years setting forth each capital project, identifying the expected beginning and ending date
Plan (CIP) for each project, the amount to be expended in each year, and the method of financing those
expenditures.
Capital Labor The portion of labor costs supporting the capital improvement program.
Cash Basis of A basis of accounting under which transactions are recognized only when cash changes
Accounting hands.
Cash Reserves Easily liquidated cash and investments available to meet operating, capital, self-insurance,
and debt service obligations. Reserves may be restricted or unrestricted. The O&M and
Capital Funds Available are unrestricted cash reserves, made up of cash and investments
(see Funds Available and Funds Required).
Central Contra A joint powers authority utilized by Central San as a long-term financing vehicle for its capital
Costa Sanitary program.
District Facilities
Financing
Authority
(CCCSD FFA)
Certificates of A form of financing used by municipal or government entities which allows an individual to
Participation buy a share of the lease revenue of an agreement made by these entities.
Comprehensive The CAFR is prepared at the close of each fiscal year to show the actual audited condition of
Annual Financial Central San's funds and serves as the official public record of Central San's financial status
Report(CAFR) and activities.
Contra Costa The retirement association for 16 local agencies in Contra Costa County, including the
County County itself. CCCERA's retirement benefit structure is based upon the County Employees
Employees' Retirement Law (CERL) of 1937, commonly referred to as the "37 Act."
Retirement
Association
(CCCERA)
CCF One hundred cubic feet, which equals 748 gallons or one unit.
Civil Service The system used for the selection, examination, employment, classification, advancement,
System suspension, and discharge of employees. Applies only to Regular and Intermittent
employees or employees who have attained civil service status but are working in a position
excluded from the civil service.
Collection Pipelines and pumping stations that convey wastewater from customers to the treatment
System plant.
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Supplemental Data and Glossary
Commercial Short-term financing for capital projects.
Paper
Connection Fees A fee charged when new or additional Residential Unit Equivalents (RUE) connect to the
(Capacity Fees. sewer to contribute their fair share of service and facility costs. (See Capacity Fees and
Facility Capacity Pumping Capacity Fees).
Fees)
Consent Decree An agreement or settlement to resolve a dispute between two parties.
Cost of Service Equitably assigns cost responsibility to customers through rates and charges developed as
Study part of the study.
Credit Rating A rating assigned by a nationally recognized statistical rating agency, providing an indication
to creditors of the ability of Central San to meet its financial obligations when due. Central
San currently has credit ratings from two firms: Standard & Poor's and Moody's. A better
credit rating allows Central San to borrow at a lower cost than a less favorable credit rating.
Debt-Funded Expenditures for capital projects which are funded by bonds, state loans, or other debt.
Capital
Debt Policy A policy adopted by the Board that discusses when and how bonds and other forms of
indebtedness may be used by Central San.
Debt Service Expenditures for interest and principal repayment on bonds or other debt.
Debt Service The ratio of net revenues to debt service requirements, calculated in accordance with bond
Coverage documents. Central San's debt policy specifies that Central San will target a debt service
coverage ratio of at least 2.0x. Central San's bond covenants require at least 1.25x
coverage on a "gross revenue" basis and 1.00x on a net revenue basis.
Debt Service One of four sub-funds of the enterprise fund used to account for Central San's operations.
Fund This sub-fund accounts for activity associated with the payment of Central San's long-term
bonds and loans.
Defeasement Relieving the agency of a particular liability (such as a specific bond series) by refunding the
liability through an escrow or trust fund. Legally defeased liabilities do not need to be
appropriated each year as the trust fund is removed from the control of the agency. (Central
San defeased its 1994 debt using 1998 Revenue Refunding Bonds.)
Deficit The excess of expenditures or expenses over revenues during a single accounting period.
Department A major organizational unit with overall managerial responsibility for functional programs.
Distribution Wastewater treatment plants, storage reservoirs, pumping plants, pipelines, and
System appurtenances that treat and transmit water to customers.
District Code A system of rules, which are compiled and arranged by a municipal corporation, and are
adopted and used to regulate the conduct of its inhabitants and government.
District Temporary staffing positions who are restricted to working no more than 12 months, do not
Temporary receive customary benefits, and do not have civil service status.
Division A major organizational unit of a department. Most departments have several divisions, each
providing different services.
Effective Utility A framework developed in 2007 by the Environmental Protection Agency and water industry
Management leaders that indicates where effectively managed water/wastewater utilities should focus.
Encumbrance The obligated and unspent portion of a contingent liability established through a purchase
order that is chargeable to an account. It ceases to be an encumbrance when it is paid by
the recording of an invoice or a reduction of the purchase order's outstanding balance
occurs.
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Enterprise In governmental accounting, these are used to account for self-sustaining activities that
Funds derive the major portion of their revenue from user fees. Enterprise Fund Accounting is used
operations financed and operated in a manner similar to business enterprises, and for which
preparation of an income statement is desirable. Central San uses one enterprise fund with
four"sub-funds"to better manage internal finances. The sub-funds are as follows:
• Running Expense- (also referred to as Operations and Maintenance, O&M, or R/E)
accounts for the general operations of Central San. Substantially accounts for all
operating revenues and expenses.
• Sewer Construction - (also referred to as Capital or S/C)
accounts for non-operating revenues that are to be used for acquisition or
construction of plant, property, and equipment.
• Self-Insurance - (also referred to as S/1)
accounts for interest earnings on cash balances and cash allocations from other
funds, temporary investments, and costs of insurance premiums and claims not
covered by Central San's insurance policies.
• Debt Service
A sub-fund that accounts for activity associated with the payment of Central San's
long-term bonds and loans.
Expenditure The payment of an obligation from Central San's cash amounts.
Facility Capacity See Connection Fees above.
Fees
Fiduciary Fund A fund in which assets are held by a governmental unit in a trustee capacity or as an agent
for individuals, private organizations, and/or other governmental units. There are four types
of fiduciary funds: Pension (and other employee benefit), Investment, Private-Purpose and
Agency.
Fiscal Year The 12-month period that begins on July 1 and ends on June 30 of the following year.
Full Time An employee who works full time counts as 1 FTE.
Equivalent(FTE)
Fund An independent fiscal and accounting entity with a self-balancing set of accounts, recording
cash and/or resources together with all related liabilities, obligations, reserves, and equities
which are segregated for the purpose of carrying on specific activities or attaining certain
objectives. One type of government fund is an enterprise fund and is the only type of
government fund used by Central San.
Fund Balance Assets minus liabilities (also called net assets).
(Net Assets)
Funded Position Authorized position for which the Board has appropriated funding in a fiscal year.
Funds Available The amount of cash and investments available in the O&M and S/C funds on June 30 of any
(Central San fiscal year using the Funds Required definition below.
term and
definition)
Funds Required Used in the 10-year planning process, this is the amount of money held in cash and
(Central San investments (liquid assets)that is needed on June 30 of any fiscal year to meet cash flow
term and needs through mid-December, when the first sewer service charge and property tax
definition) payments are received from Contra Costa County. This includes Operations and
Maintenance (O&M) and Sewer Construction Fund (S/C) cash and temporary investments; it
does not include OPEB payments/accruals, Debt Service cash, reserve investments, or and
Self-Insurance (S/1) Fund
Cash and investments.
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Supplemental Data and Glossary
Generally Generally Accepted Accounting Principles are the accounting rules that are required to be
Accepted followed by organizations in the U.S. These Principles are established by two organizations:
Accounting the Financial Accounting Standards Board for commercial and not-for-profit entities, and the
Principles Governmental Accounting Standards Board for governmental entities in the United States.
(GAAP)
Governmental Governmental Accounting Standards Board is the body that specifies the accounting rules for
Accounting governmental agencies in the U.S. The Board issues GASB statements that can require
Standards Board significant changes to an agency's financial reporting.
(GASB)
GASB 45 An accounting requirement published in 2004 by the Governmental Accounting Standards
Board (GASB)that addresses how the accounting and financial reporting for post-
employment benefits other than pensions (OPEB) should be performed. This Statement
establishes standards for the measurement, recognition, and display of OPEB
expense/expenditures and related liabilities (assets), note disclosures, and, if applicable,
required supplementary information (RSI) in the financial reports of state and local
governmental employers.
GASB 68 An accounting requirement of the Governmental Accounting Standards Board effective in
2014 that addresses Accounting and Financial Reporting for Pensions, which revises and
establishes new financial reporting requirements for most state and local governments that
provide their employees with pension benefits.
General Fund An account used to record funds that are not legally restricted for specified purposes, such
Reserves as those committed to repay obligations. General Fund Reserves provide for self-insurance
claims, unplanned revenue changes, working capital, workers' compensation, and
unanticipated contingencies.
General The Chief Executive Officer of Central San, hired by the Board.
Manager
General When a government pledges its full faith and credit to the repayment of the bonds it issues,
Obligations (GO) those bonds are general obligation (GO) bonds. Sometimes, the term is also used to refer to
Bonds bonds which are to be repaid from taxes and other general revenues.
Government Government Finance Officers Association represents public finance officials throughout the
Finance Officers U.S. and Canada which provides best practice guidance, consulting, networking
Association opportunities, publications, training programs, and recognition programs to its members.
(GFOA)
Goal The long-term continuing mission of a department, division, or program. Goals define the
strategic results to be achieved and therefore indicate the relevance, permanence, scope,
and effectiveness of that outcome.
Household The service and facility operated by Central San providing for the safe disposal of items that
Hazardous in the absence of this service could be inappropriately disposed of through the sewer system,
Waste Collection risking pollution of the Bay.
Facility
Infrastructure The tangible physical components that ensure delivery of reliable, high-quality wastewater
service now and in the future. Typical components are reservoirs, pumping plants, pipelines,
and anaerobic digesters.
Internal Control The plan of organization and all other coordinated methods and procedures adopted to
safeguard assets; check the operations data; promote operational efficiency, economy, and
effectiveness; and encourage adherence to prescribed managerial policies that will
accomplish the objectives of the organization.
Key Indicators with specific targets that measure how well Central San is progressing in achieving
Performance its goals under the Key Metrics of the Strategic Plan.
Indicators (KPI)
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Supplemental Data and Glossary
Liability A debt of the business; an amount owed to creditors, employees, government bodies, others;
a claim against assets.
Modified Accrual The accrual basis of accounting adapted to the government fund type under which revenues
Basis of are recognized when they become both "measurable" and "available to finance expenditures
Accounting of the current period." Expenditures are generally recognized when the related fund liability
is incurred.
Modified Cash Income and expense accounting method that records revenue when cash is received and
Flow Basis records expenses when cash is paid.
Net Assets See Fund Balance.
One-Time A revenue that cannot reasonably be expected to continue, such as a single-purpose federal
Revenue grant, an interfund transfer, or use of a reserve. Continual use of one-time revenues to
balance the annual budget can indicate that the revenue base is not strong enough to
support current service levels.
Operating Board-approved funding for operating expenses. Unspent appropriations do not rollover to
Appropriation the next fiscal year.
Operating A financial plan to fund ongoing operations costs incurred to operate Central San, excluding
Budget the building of capital assets. which are included in the capital budget.
Operating Deficit When current expenditures exceed current revenues.
Operating The three units of Central San that carry out the mission of the agency: Administration,
Departments Engineering &Technical Services, and Operations.
Operating Labor The portion of Central San's labor costs supporting day-to-day operations.
Operating & One of four sub-funds of the enterprise fund uses to account for Central San's operations.
Maintenance This fund provides for the general operations, maintenance, and administration of Central
(O&M) Fund San. Also referred to as the "Running Expense"fund.
Organization A group of staff organized into one unit or section working under a division or department.
This is the lowest level at which operating budgets are developed.
Other Post- In addition to pensions, many state and local governmental employers provide other post-
Employment employment benefits (OPEB)as part of the total compensation offered to attract and retain
Benefits (OPEB) the services of qualified employees. OPEB includes post-employment healthcare, as well as
other forms of post-employment benefits (e.g., life insurance)when provided separately from
a pension plan.
Overhead Administrative Overhead and Non-Work Hours include indirect costs and the value of time off
(Administrative (holidays, sick leave, vacation, etc.). These costs are expressed as a percent of salary. For
Overhead and Central San accounting, salaries and benefits are separate from overhead (whereas
Non-Work consulting firms typically view employee benefits in "overhead"). Indirect costs are costs that
Hours) are incurred for a common or joint purpose benefiting more than one cost objective or task
and are not readily assignable.
Pay As You Go A term used to describe paying expenses as they are incurred, as opposed to pre-paying,
(or PAYGO) pre-funding, or setting money aside for future expenses. Used primarily to refer to the
strategy of paying for capital projects.
Public California's Public Employees' Pension Reform Act, established a new less costly retirement
Employees' tier for employees newly hired or which did not have prior service with a reciprocal retirement
Pension Reform system prior to January 1, 2013.
Act (PEPRA)
Performance Specific quantitative measures of work performed within an activity or program (e.g., total
Measures miles of pipes cleaned). Also, a specific quantitative measure of results obtained through a
program or activity (e.g., reduced incidence of vandalism due to a new street lighting
program).
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Program Broadly defined group of related reference projects combined to facilitate planning and
decision making.
Project or Project level identified in the CIP comprised of a discrete set of tasks that can be carried out
Reference independently but require coordination with other projects to ensure overall program
Project success. Appropriation requests and projected cash flows are authorized at this level.
Proposed The recommended balanced financial plan for a specific period of time submitted for
Budget consideration to the Board prior to the start of the Proposition 218 notification process.
Proprietary Fund Proprietary funds are used to account for a government's ongoing organizations and
activities that are similar to businesses found in the private sector. These funds are
considered self-supporting in that the services rendered by them are generally financed
through user charges or on a cost reimbursement basis. There are two types of proprietary
funds: Enterprise and Internal Service.
Pumping A component of connection fees for units that are located in areas tributary to one or more of
Capacity Fees Central San's pumping stations. (See Capacity Fees and Connection Fees.)
Rate (or Cash) Annual operations and maintenance expenses as well as the portion of the capital program
Funded that are funded from current revenues.
Expenditures
Rates Charges for services to customers that cover the costs of such services while allowing
Central San to remain reserve neutral.
Regular Position Full-time, civil service positions.
Reserve Policy A document outlining minimum reserve thresholds, identifying current and potential reserves,
and explaining what reserves are, or will be used for.
Reserves See Cash Reserves.
Residential Unit A measure of sewage volume and strength equivalent to a typical residential household.
Equivalent
(RUE)
Restricted Monies that, by action of the Board, State Law, or Bond Covenants, are required to be spent
Reserves on specific programs or held for specified purposes.
Restricted Monies that are legally earmarked for a specific use, as may be required by state law, bond
Revenue covenants, or grant requirements. For instance, capacity fees must be used within the
Sewer Construction Fund; the revenue cannot be transferred to O&M.
Revenue Monies received from rates, charges, and other sources. Revenues are used to pay for
expenditures.
Revenue Bonds Bonds (instruments and indebtedness) issued by the public sector to finance a facility or
equipment purchase, which, unlike general obligation bonds, are not backed by the full faith
and credit of the government. Instead, their revenues are generated from the facility or
equipment that they finance. Because they are state or local government bonds, their
interest earnings are typically tax-exempt under the Internal Revenue Code.
Revenue- Expenditures on capital projects which are funded by revenues of Central San rather than by
Funded Capital debt, grants, or other funds.
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Supplemental Data and Glossary
Service Area The cities and areas served by Central San, including Lafayette, Orinda, Moraga, Danville,
Alamo, Walnut Creek, Pacheco, and portions of San Ramon and Martinez. Concord's
residents' and businesses' wastewater is collected by that City and treated by Central San
through a contractual arrangement; therefore, Concord is considered to be in Central San's
service area. (Also called Service Territory).
Self-Insurance One of four sub-funds of the enterprise fund used to account for Central San's operations.
Fund This fund covers the cost of claims not covered by Central San's insurance coverage, the
cost of insurance premiums, interest earnings on the fund, and other associated costs.
Sewer One of four sub-funds of the enterprise fund used to account for Central San's operations.
Construction This sub-fund provides for the treatment plant and collection system renewal and
(Capital) Fund replacement expenditures, as well as office facilities renewal, vehicle and equipment
(S/C) replacement, information systems replacement, and miscellaneous capital expansion needs.
Strategies, The key components of the Strategic Plan that specify the overall goals in the coming years,
Initiatives, consisting of the Strategies (highest level objectives), Initiatives (how the strategies will be
Metrics (SIM) achieved), and Metrics (measurements of progress).
Sinking Fund A method by which a government may set aside money over time to pay for a project or
obligation.
Staffing Plan The classes and positions that have been authorized by the Board and have been
determined necessary to carry out Central San functions. Central San's current staffing level
is based on a 2015 Organization and Staffing Plan, which resulted from a study conducted
by Raftelis Financial Consultants, recommending 290 FTE positions.
Strategic Plan The document that provides a blueprint for how Central San will respond to future challenges
and changing priorities over a two-year period. It outlines specific goals, strategies, and
objectives to guide Central San and establishes criteria to measure progress.
Strategy Highest level of capital improvement activities, generally a grouping of related programs.
Represents key capital objectives as defined in the Mission Statement, Strategic Plan, and
Board policies and directives.
Statement of Net A statement reporting the present financial position of an entity by disclosing the value of its
Assets (Balance assets, liabilities, and equities as of a specified date. Assets minus liabilities equal fund
Sheet prior to balance (also called Net Assets).
GASB 34)
Subsidy Relating to Build America Bonds (BABs), the subsidy payment represents funds from the
Payment federal government to offset part of the interest cost paid by Central San as the issuer of
bonds. The BABs were issued in 2009 in lieu of traditional tax-exempt debt. Central San
pays a taxable rate of interest to investors, investors pay the Federal Government Income
Tax on that interest, and the federal government remits a specified percentage of the interest
payment to Central San.
Unfunded The difference between the actuarial accrued liability and the actuarial value of assets
Actuarial accumulated to finance that obligation. This is a term used in connection with pension plans
Accrued Liability or commitments to provide other post-employment benefits (OPEB)to employees.
(UAAL)
Unfunded Liability that has been incurred during the current or a prior year, that does not have to be
Liability paid until a future year, and for which reserves have not been set aside. This is similar to a
long-term debt, in that it represents a legal commitment to pay at some time in the future.
Vacancy Factor Recognizing that not all Funded Positions will be occupied throughout a fiscal year, this
allowance reduces budgeted funding to reflect such vacancies. While positions are vacant,
some costs are incurred on occasion for temporary staff or consulting resources, reducing
the vacancy factor.
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Supplemental Data and Glossary
Acronyms and Abbreviations in the CIB/CIP
Acronyms and Abbreviations in the CIB/CIP Acronyms and Abbreviations in the CIB/CIP
AB Assembly Bill 1/0 Input and Output
GIS-based Asset Integrity
Management and Capital Planning
ADA Americans with Disabilities Act InfoMaster Tool
New Sewer System Hydrodynamic
A/N Aeration and Nitrification InfoWorks Model
ATS Automatic Transfer Switch IT Information Technology
BAAQMD Bay Area Air Quality Management District MCC Motor Control Center
BACWA Bay Area Clean Water Agencies MGD Million Gallons per Day
Board Board of Directors MPR Multi-Purpose Room
Contractual Assessment District or National Association of Clean Water
CAD Computer Aided Design NACWA Agencies (formerly AMSA)
National Pollutant Discharge
CBC California Building Code NPDES Elimination System
CCRP Concord Community Reuse Project 08'
M Operations& Maintenance
CCTV Closed-Circuit TV PG&E Pacific Gas& Electric Company
CCWD Contra Costa Water District PLC Programmable Logic Controller
Program Management Information
CEPT Chemically Enhanced Primary Treatment PMIS System
CEQA California Environmental Quality Act POB Plant Operations Building
CIB Capital Improvement Budget POD Plant Operation Division
Capital Improvement Plan-covers 10
CIP years PS Pumping Station
CIPP Cured-in-Place Pipe PVC Polyvinyl Chloride
Computerized Maintenance Management Risk Analysis and Management for
CMMS Systems RAMPCAP J100 Critical Asset Protection
CO Carbon Monoxide R&R Rehabilitation & Replacement
Cogen Cogeneration RW or ReW Recycled Water
CSO Collection System Operations RWQCB Regional Water Quality Control Board
Supervisory Control and Data
CWMP Comprehensive Wastewater Master Plan SCADA Acquisition
DP District Project SCB Solids Conditioning Building
EIR Environmental Impact Report SCVWD Santa Clara Valley Water District
ERP Enterprise Resource Planning W SSC Sewer Service Charge
Contra Costa County Flood Control and
FCD Water Conservation District SSO Sanitary Sewer Overflow
FY Fiscal Year-July 1 through June 30 SWRF Satellite Water Recycling Facility
GDI Geographic Data Integration TP Treatment Plant
GHG Greenhouse Gas UPS Uninterruptible Power System
GIS Geographic Information Systems UV Ultraviolet
HMI Human Machine Interface V Volt
HOB Headquarters Office Building VFD Variable Frequency Drives
Water Environment& Reuse
ICM Integrated Catchment Modeling WE&RF Foundation
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