HomeMy WebLinkAbout09.b. Receive proposed FY 2019-20 Budget Page 1 of 310
Item 9.b.
,ek CENTRAL SAN
SANITARYCENTRAL CONTRA COSTA , .
May 16, 2019
TO: HONORABLE BOARD OF DIRECTORS
FROM: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
EDGAR LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE PROPOSED CENTRAL SAN FISCAL YEAR 2019-20 BUDGET
FOR THE FOLLOWING FUNDS:
• OPERATIONS AND MAINTENANCE
• CAPITAL IMPROVEMENT
• SELF-INSURANCE
• DEBT SERVICE
Attached are PowerPoint presentations covering the Fiscal Year 2019-20 proposed budget, and an
electronic version of the budget book distributed to the Board on May 2, 2019. The proposed budget has
been/will be further considered by Board Committees and the Board as follows:
May 7 Engineering & Operations Committee review of Capital Budget
May 16 Powerpoint Presentation of Budget by Staff at Board Meeting
May 21 Finance Committee review of Overall Budget with Focus on Operations
and Maintenance, Self-I nsurance, Debt Service
June 6 Public Hearing on Budget Adoption
Strategic Plan Tie-In
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct long-range financial planning, Strategy 2- Manage costs
ATTACHMENTS:
1. Presentation - O&M
2. Presentation - Capital Budget
3. FY 2019-20 Budget Draft (as provided to Board 05-02-19)
May 16, 2019 Regular Board Meeting Agenda Packet- Page 225 of 549
PROPOSED
CENTRAL SAN BUDGET
FISCAL YEAR 2019 =20
Presented by
r• Philip R. Leiber, Director of Finance and Administration
Edgar J. Lopez, Capital Projects Manager
Board Meeting
May 16, 2019
Capital Presented to: Engineering and Operations Committee
May 7, 2019
{ z
f
Operations and Maintenance to be presented to:
Finance Committee
_ May 21, 2019
May 16, 201 a d Meeting Pqnz 99A r)f 54A
-
'h
PRESENTATION OVERVIEW
Budget Summary
Funding Sources and Uses
Operation and Maintenance
Sewer Construction (Capital Improvements)
Self-Insurance
Debt Service
Reserves
Detailed Capital Improvement Presentation
"May 16, oar eeting Agenda ?�- PqnP 997 nf SAA 2 I
BUDGET SUMMARY
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Variance from Percent
Budget Budget Budget Budget * FY 2018-19 Variance
Operations and $89,810,918 $89,713,587 $89,720,456 $87,584,775 $(2,135,681 ) -2.4%
Maintenance
Sewer $36,808,756 $42,774,000 $45,319,000 $66,176,000 $20,857,000 46.0%
Construction
Debt Service $3,790,807 $3,819,099 $3,611 ,038 $2,982,415 $(628,624) -17.4%
Self-Insurance $948,000 $936,500 $924,500 $1 ,073,700 $149,200 16.1 %
Total Budget $131,358,481 $137,243,186 $139,574,994 $157,816,890 $18,241,896 13.1%
* With contribution to reserves of $1,349,926 in FY 2019-20, total uses of funds is $159,166,815.
THE PROPOSED BUDGET PROVIDES THE RESOURCES TO MEET THE GOALS OF THE
FY 2019-20 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
3 Aelkvh
_
ADDRESSING 7 BUDGET PRIORITIES
Challenge Primary Response
■ Provide exceptional customer service and maintain an excellent reputation in the community
1. Addressing concerns and Continue commitment to customer Public outreach, including continuing funding for the
educatingoutreach, prioritization of the Ten-Year highly successful Central San Academy, educating
regarding - • Capital Improvement Plan, balance students on pollution prevention, and publishing the
revenue/resources - • capital spending with affordability and Pipeline community newsletter.
aging infrastructure • meet rate impact concerns.
regulatory requirements
GOAL TWO or _-M
Strive to meet regulatory requirements �'l1
2. Increasingly stringent air Anticipate changing regulations and plan Replacement of wet scrubber as part of the Solids
regulation - • for cost-effective alternatives to maintain Handing Facilities Improvement Project.
reliability and meet requirements.
responsibleGQALTHREE Be a fiscally
3. Maintaining • • Offset infrastructure replacement, CalPERS health benefits transition, which will save
rates at an affordable leveregulatory responses, and other expenses approximately$5.8 million per year in healthcare-
with cost-saving efforts, efficiencies, related costs without sacrificing benefits for
optimizations, and innovations.
employees.
Steam and Aeration Blower Systems Replacement
Study to optimize one of the major energy sources
of the treatment process.
4 _
ADDRESSING 7 BUDGET PRIORITIES
Challenge=i9W Primary Response
GOALFOUR Recruit, develop and retain a highly trained and safe workforce
rpt
Fostering4.
Recruit,train,and retain high quality Employee development programs such as internal leadership,
to harness human talent to meet employees. Develop characteristics of training,and mentorship programs and outside conferences,
facedthe challenges by Central San's company culture to reaffirm training,and professional association memberships to inspire
Central San priorities, recognize employees, and
continuous education and improvement.
celebrate core values.
Replace ERP software and undergo significant training to utilize this
new technology at the core of Central San's business operations.
• •_ . • Continue the effort which began in Major projects include the Solids Handling Facility Improvements,
FY 2018-19 to implement the Pumping Station Improvements, Outfall Pipeline Inspection and
• recommendations of the Comprehensive Improvements, and Mechanical and Concrete Structures
• Wastewater Master Plan with significantly Rehabilitation.
• increased capital investment.
• Partner with agencies to find water solutions The ongoing effort to bring to fruition a Recycled Water Exchange
• benefiting the region and state. This includes with Contra Costa Water District and Santa Clara Valley Water
• looking for creative solutions such as water District to utilize recycled water at nearby refineries in place of
• • exchanges and increased interagency potable water to increase the amount of potable water available to
• cooperation. the community.
7. Partnering to address ever- Test and plan for alternative processes, Continue piloting new treatment technologies and researching
focusincreasing equipment,and technology that are potential solar energy projects.
recoverysustainable and cost effective.
Mrd Meeting Ager -
T TAi FUNDING O
FY 2017-18 FY 2018-19 FY 2019-20
$i3o,jZ52,599 $1'+i,aoo,/-O/ $159,166,815
$120,000,000
$101,310,000
$100,000,000 $95,000,
$82,920,
$80,000,000
$60,000,000
$26,200,000 $17,502,415
$40,000,000 $21,950,00 $16,828,591 $5,750,000 $8,404,400
$20,000,000
$19,340,00 $14,828 31 $5,900,000 $7,707,696
—
$6,060,000 $8,195,1
$ 111 . a M Elio
Sewer Service Charge City of Concord Property Tax Revenue Capacity Fees All Other Sources
■FY 2017-18 Budget ■FY 2018-19 Budget ■FY 2019-20 Budget
Increase of $11 .8 million relates to:
Sewer Service Charge (SSC) up $6.3 million due to 5.25% rate increase
Concord up $4.3 million due to increase in CIP spending ($4.5 million) offset
by lower reimbursement for Operations and Maintenance (O&M) ($0.2 million)
Property Tax up $0.7 million
Capacity Fees down $0.2 million
All Other Sources up $0.7 million related to higher interest income
6
SEWER SERVICE CHARGE
RATES AND REVENUES
' " 2017=18 THROUGH FY 2019=20
FY FY FY
SSC Rates 2017-18 2018-19 2019-20 Change % Increase
Single Family $530 $567 $598 $31 5.5%
Multi Family $513 $549 $566 $17 3. 1 %
Other Charges Vary — See Ordinance No. 304
Change from
Budget Budget Projected FY Budget FY 18-19 % Increase from
FY 2017-18 FY 2018-19 2018-19 FY 2019-20 Projected* Projected
SSC Revenues $89,188 $95,000 $96,310 $101,310 $5,000 5.2% from
($Thousands) systemwide
average rate
adjustment
7
USE OF ^ UNDS
FY 2017-18 FY 2018-19 FY 2019-20
$138,532,599 $147,386,287 $159,166,815
$87,584,775
$100,000,000 $89,720,456
$90,000,000 $89,810,918
$80,000,000
$70,000,000 $66,176,000
$60,000,000 $45,319,000
$50,000,000
$40,000,000 $36,808,
$30,000,000
$2,982,415 $1,073,700
$20,000,000 $3,611,038
$10,000,000 $3,790,807 $924,500 $7,811,293
$948,000 I ,349,926
Operations and Sewer Construction(CIP) Debt Service Self-Insurance Contribution to Reserves
Maintenance
■FY 2017-18 Budget ■FY 2018-19 Budget ■FY 2019-20 Budget
Increase of $11 .8 million relates to:
O&M Budget reduced $2.1 million
$20.9 million increase in capital spending (excluding carryforwards)
$0.6 million decrease in debt service (refinancing in FY 2018-19)
$0.1 million increase in self-insurance funding
$6.5 million decrease in contribution to reserves
8Aelkvh
OPERATING FUND REVENUEF
Budgeted ($MILLIONS) Budgeted
FY 2018-19 FY 2019-20
$86.9 $89.6
Hazardous
Household Other Hazardous
City of Waste $0.9 $4.1 Household Other Concord 1% 5% Waste $1.0 $4.9 Sewer
Sewer City of 1% 6% Service
$17/ Service Concord
Charge $14.6 Charge
$67.1 16% $69.1
77% _ 77%
woo
Increase of $2.7 million:
Higher allocation of SSC to O&M (shifts year to year); ends up increasing
reserve
$0.2 million decrease in Concord Sewer Service Charge
$0.8 million increase in Other charges (including $0.6 million increase in
Interest income)
9
OPERATING FUND EXPENDITURES FY 2019-20
$87.6
($MILLIONS
D.Materials&Supplies, 2,152,127,3%
D.Self Insurance Fund, 825,000,1%
D.Other Expenses, 2,609,484,3%
D.Outside Services, 3,639,547,49/c /
D.Professional&Legal Fees,
874,300,1% D.Hauling&Disposal,
1,186,175,1%
D.Repair&Maintenance,
5,242,867,6% A.Salaries&Wages, 38,060,443,43%
D.Utilities, 4,209,350,5%�
D.Chemicals, 1,620,000,2%
C.Additional UAAL Contributions,/
1,250,000,1%
C.Retirement UAAL/Unfunded
Liabilities, 11,186,841,13%
B. Benefits(Retirees),
4,001,000,5% B.Benefits&Cap O/H Credit,
10,727,641,12%
Revenues of $89.6 million less expenditures of $87.6 million =
Contribution to Reserve of $2.0 million
10
O&M SPENDING BY DIVISIONS
, : , • ,
Administration (Admin) $27,261 ,866 $27,737,657 $23,482,428 ($4,255,229)
Engineering and $17,034,337 $17,033,406 $16,863,942 ($169,464)
Technical Services
Collection System $14,156,213 $13,960,060 $14,750,139 $790,079
Operations (CSO)
Plant Operations, $29,942,529 $29,436,539 $30,879,918 $1 ,443,379
Maintenance and Safety
Recycled Water $1 ,318,642 $1 ,552,794 $1 ,608,348 $55,554
• � : i $89,720,456 . :
O&M spending is reduced $2.1 million, with changes by Division as follows:
Administration down $4.3 million (HR: Retiree benefits down $2 million, UAAL down $1 .6
million (CaIPERs transition), UAAL additional contributions down $1 .25 million; Salaries &
Benefits & UAAL for Admin staff up $0.9 million; other costs in IT, Risk, Finance, Purchasing,
GM/Secretary: down $0.4 million)
Engineering down $0.2 million (Capital projects reduced O&M by $0.4 million as more time
charged to capital projects; offset in part by $0.2 increase in Environmental & Regulatory
Compliance (Disposal costs, salaries))
CSO up $0.8 million (due to Salaries & Benefits and UAAL, other costs flat)
Plant Operations, Maintenance, and Safety up $1 .4 million (salaries/benefits up $1 .2 million,
chemicals/utilities u $0.2 million)
Recycled water up $0.1 million (costs adjusted based on actual FY 2018-19 experience)
11
OPERATING EXPENSE COMPARISON
$40,000,000 —
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
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■FY 2017-18 Budget ■FY 2017-18 Actual ■FY 2018-19 Budget I FY 2018-19 Projected ■FY 2019-20 Budget
Proposed O&M Budget spending down $2. 1 million vs. FY 2018-19
Salaries up $1 .7 million (4.7%), vacancy factor change costs $0.6 million (52%),
overtime up $0.3 million (23%)
Benefits for active employees down $1 .8 million (10.4%), related to CalPERs
healthcare transition offset by benefit vacancy factor up $0.3 million. Capitalized
overhead increases by $0.5 million (hi oer CIP spending))
Retiree benefits down $1 .9 million (327%l6l
related to CalPERs healthcare transition
Non-labor expenses flat at $22.4 million. inor Changes among categories:
chemicals up $0.2 million, repairs and maintenance down $0.2 million
12 _
O&M BUDGET HIGHLIGHTS
Labor Related Costs
Salaries:
Cost of Living Adjustment (COLA): 3.5%; vacancy factor reduced from 3.25% to 2%
results in higher net salary costs. Higher capitalized labor cost by $0.5 million. Net
increase in salary and benefit costs for active employees is 1 .2%.
Health:
Transition to CalPERs saves $5.8 million per Bartel estimate.
Delta Dental: Draft Budget assumes 3.75% increase. Carrier subsequently
announced 7% reduction.
Pension / Other Post-Employment Benefits (OPEB):
CCCERA: Normal costs essentially flat at $5.3 million. Decrease of 1 % for Legacy,
3.3% for PEPRA; offset by higher wage base.
UAAL:
$10.7 million for FY2018-19 increases to $11.2 million for FY2019-20
Additional payment toward retirement/OPEB is reduced from $2.5 million to $1.25 million for FY 2019-20. Board
may decide to make up balance from FY 2019-20 budget variances, if any.
$4 million funding for GASB 45 OPEB retiree health benefits ($4 million retiree health
premiums, $0 million contributed to trust toward unfunded liability). Reduced from $7.5
million budgeted for FY 2018-19.
ryST y_
13
.`May 16, 2019 Regular Board Meeting Agenda RQrkpt-
PENSION AND OPEB
LIABILITY AND FUNDING STATUS
Pension OPEB
Million $160 100% Million $90 100%
$140 90% $80 90%
$120 80% $70 80%
70% $60 70%
$100 60% 60%
$50
$80 50% 50%
$40
$60 40% 40%
30% $30 30%
$40
20% $20 20%
$20 10% $10 10%
$0 0% $0 0%
ti� ti� tib` ti� ti� til ti� ti� ti� ti� ti� ti� ti� ti1 ti� ti°�
,y0 ,y0 ,LO ,y0 ,LO ,y0 ,LO ,y0 ,y0 ,LO ,LO ,y0 ,LO ,y0 ,LO ,LO
UAAL Funded% iiiiiiiiiiiiiiiiiiiii.lAAL Funded%
Notes:
* Pension:2018 valuation is released summer of 2019.
** OPEB-Valuations projected liabilities less assets as of June 30 of that year
*** Pension funded percentage excludes Section 115 Trust Assets(established in FY 2017-18).
`May 16, "Far Board Meeting Agenda RQrkpt-
PAYROLL BENEFITS PERCENTAGE
Employee Benefit Percentage for FY 2019-20 without
Pension & OPEB UAAL
Percentage per FY 2017-18 Audited Financials 75.30%
Less: FY 2017-18 Pension UAAL -36.31 %
FY 2019-20 Revised Percentage 38,99%
Notes:
• This calculation uses the Administrative Overhead Benefits methodology approved
by the Board in 2014, as recommended by Matrix Consulting
L%L • This compares with 41 .65% for the prior year.
• This is one component of the Overhead rate, which also includes UAAL, Admin
Overhead, and Non-Worked Hours. The smoothed rate for FY 2019-20 is 203%
(Adopted by the Board in February 2019)
May 16, 2019 Regular Board Meeting Agenda RQrkpt-
O&M BUDGET HIGHLIGHTS :
PROVIDING NECESSARY STAFFING
291 full-time equivalent positions funded per
Raftelis staffing analysis recommendation
Reallocations:
Contracts Analyst (Purchasing) to Contracts Specialist
(Capital Projects)
Two Assistant Engineers (Capital Projects) to one
Engineering Assistant I/II (Capital Projects) and one
Associate Engineer (Capital Projects)
Two Control Systems Engineers (Plant Operations) to
Utility Systems Engineers (Plant Operations)
16 I
CAPITAL BUDGET HIGHLIGHTS :
INFRASTRUCTURE INVESTMENT
Infrastructure Investments Over Ten Years: $306,200,000
$50.M
$45.M
2.3 M
$40.M
$35.M
$30.M
0.7M � 0.8M � 19.5M
$25.M 2.5M 2 M 3.1M 20.3M
4.M 0.3M 20.8M
$20.M 0.7 M 6.3 M 3.M
$15.M
12.7 M 14.5 M
8.8 M 12.3 10.5 M 11.2 M
$10.M -j -
$5.M 10.3M 87M 715.7M JM
$O.M
FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
Projected
WTP WCS WGl I-ARW
FY 2019-20 investment increases to $66. 176 million
17 _
CAPITAL IMPROVEMENT PROGRAM
FUNDING SOURCES FY 2019-20
$65.6 MILLION
Other Capacity
City of $1.5 Fees
Concord 21
$5.8
$11.6
9% Ad
18/ y Valorem
Tax
$14.5
22%
Sewer
Service
Charges 00
$32.2
49%
Increase of $9.7 million from FY 2018-19:
$4.3 million increase in Sewer Service Charge
$4.5 million increase in Concord Sewer Service Charge
$1 .2 million increase in Ad Valorem Taxes
$0.5 million decrease in Capacity & Pumped Zone fees
$0.2 million increase in Interest income & developer fees 18 AIM i
CAPITAL IMPROVEMENT PROGRAM
EXPENDITURES FY 2019-20
$66. 176 MILLION
Contingency $2.0 Recycled Water $4.5
3% 7%
General Treatment
Improvements $4.3-1---m Plant $28.3
6%
43
Collection
System $27.1
41%
Increase in capital spending of $20.9 million from FY 2018-19
Collection System u $7.8 million
Treatment Plant up $p11 .5 million
General Improvement down $0.5 million
Increase in Recycled Water Program of $1 .6 million
Contingency up $0.5 million
Revenues of $65.6 million less expenditures of $66.2 million =
Reserve Draw of $0.6 million.
1 ", 1
SELF INSURANCE BUD
FY 2019 =20
Operating Revenue Operating Expense
$1,026 $1,074
($Thousands) ($Thousands)
Legal
Interest Services
Claims
HHW Contribution $180 Technical
I Technical Adjusting
$21 Services $2
$85 Insurance
Premiums
$632
J Expected
Losses
$275
M000
O&M Fund Contribution
$825
Revenues of $1 ,025,900 less expenditures of $1 ,073,700 = Draw from Reserve of $47,800
20 __
IEBT SERVICE BUDGET
PY 2019 =20
Operating Revenue Operating Expense
$2,982 $2,982
($Thousands) ($Thousands)
Interest
Interest Payments
Income $- $837
Ad Valorem Principal
Tax $2,982 Payments
$2,145
$629K decrease from FY 2018-19 due to lower debt service from 9/2018 refinancing
No interest revenue as Debt Service Reserve Fund eliminated
21 _
AIIIIIIIIIIIIIIII
RESERVE BALANCE PROJECTIONS-2019
Sewer
Construction Self Insurance
O&M Fund Fund (Capital) Fund Totals
Reserve Policy Target end of $36,493,656 $33,088,000 $6,500,000 $76,081,656
June 30, 2019
Projected Balance as of June 30, 2019 $36,924,515 $56,148,243 $6,959,875 $100,032,633
Projected Balance Minus Reserve Policy $430,859 $23,060,243 $459,875 $23,950,977
Target at June 30, 2019
• Takeaway:
- Reserves are projected to meet or exceed the policy required levels at year end.
2/1
May 16, oar �e genda - LL
RESERVE BALANCE PROJECTIONS-2020
Sewer
_ Construction Self Insurance —
O&M Fund Fund (Capital) Fund Totals -A
Projected Balance as of June 30, 2019 $36,924,515 $56,148,243 $6,959,875 $100,032,633
Projected Balance as of June 30, 2020 $38,900,110 $55,570,373 $6,912,075 $101,382,55
Change in Reserve $1,975,595 ($577,870) ($47,800) $1,349,925
Reserve Policy Target end of $38,371,110 $32,048,551 $6,500,000 $76,919,661
June 30, 2020
Projected Balance Minus Reserve Policy $529,000 $23,521,822 $412,075 $24,462,89
Target at June 30, 2020
Net FY 2019-20 reserve contribution of $1 .3 million relates mainly to
projected increase in O&M for FY 2020-21 per Financial Plan
Sewer Construction Reserve target ($32,048,551 ) at 6/3/20 is calculated in
accordance with the reserve policy (50% of cash funded CIP in following
year) based on FY 2020-21 Capital Budget of $99.7 million less anticipated
bond funding of $35.6 million
.R
.`May 16, 2M9 Regular Board Meeting Agenda RQrkPt- P2nP 94,R nf-SAA
JUNE 6 , 201E PUBLIC HEARING
Approve and Adopt Budgets
1 Operations & Maintenance
2 Capital Improvement
3 Self- Insurance
LL 4 Debt Service
Separate motion for Bay Area Clean
5 Water Agencies (BACWA) funding
($389 ,000 for FY 2019-20 )
6 Insurance Renewal
QUESTIONS
ay 16, 2019 Regular Board Meeting Agenda RQrkpt-
v
PROPOSED FISCAL YEAR (FY) 2019-20
r CAPITAL IMPROVEMENT BUDGET (CIB)
Board Meeting
r May 16, 2019
Presented by
Edgar J . Lopez, PE
f i Capital Projects Division Manager
May 16, 201 d Mee
�- � CENTRALSAN
FY 2018=19 MAJOR ACCOMPLISHMENTS
• Sewer Main Replacement — Several projects have replaced or
rehabilitated approximately 6 miles of sewers in the collection system.
• Regulatory & Safety — Selection and procurement contract for the new
air pollution control equipment under the Solids Handling Facility
Improvements (Solids Project), completed modifications to the Pump and
Blower Building, and started the construction of the Plant Operations
Building (POB) modifications.
• Infrastructure Replacement — Started construction of the Mechanical
and Concrete Renovations, completed several treatment plant projects
(Headworks Screenings Upgrade, Piping Renovation — Phase (Ph.) 107
etc.), and made design progress on major projects such as the Pumping
Station Upgrades — Ph. 1 , Solids Project, and Filter Plant & Clearwell
Improvements — Ph. 1A.
ti
Meeting Agenda Pa Pa e 252 49
PROPOSED FY 2019=20
CAPITAL IMPROVEMENT BUDGETFuture FYs Under Total Estimated
(*�
BudgetFY 2019-20 Active 2019-20 } Com plate
Program (1) k
■ F y ' }
Collection System $27,129,000 $97,770,000 $124,899,000 $349,511,000
Treatment Plant $28,631,000 $188,522,000 $217,153,000 $413,202,000
General Improvements $4,264,000 $10,400,000 $14,664,000 $24,893,000
Recycled later $4,152,000 $28,717,000 $32,869,000 $55,119,000
Contingency $2,004,000 $10,000,000 512,000,000 $24,500,000
Totals: $66,176,000 $335,409,000 $401,585,000 $867,225,000
ALL COST IN 2019 DOLLARS
** TOTAL DOES NOT INCLUDE PREVIOUS APPROVED BUDGET TO DATE
Y. 4
' 3
. -' = CENTRALSAN
CAPITAL IMPROVEMENT BUDGET
CONSTRUCTION COMMITMENTS
AS OF APRIL 2019
Serer Construction Budget,
Commitments and Capacity
--`- $ in millions $' 0
$100 - - - $100
• I
$60 X20.6 1 151 $60
I
So $40
132
24.7
$M 42.9 45.5 45.5 $20
$0 --- ---" $0
Fiscal Year 18/19 19/20 20121 21122 22123
®Approved and Projected Budget per FY
Additional contractual capacitywith a pproved rate adjustments
L Rema ining contractus I ca parity with existing rates
fi Cc m mitted a I ready(cc ntracted(
�Sewe r Cc nst ruction fu nd i ng ca pac ity fro m Ex inti ng Rates
SewerConstruction funding capacity with approved A year adjustments
and planned borrowing
•Future years amounts may differ tothe extent of reserve drawdowns.
14
CENTRALSAN
5
MAJOR PROJECTS RECOMMENDED IN CIB
TREATMENT PLANT COLLECTION SYSTEM RECYCLED WATER
• Solids Project Sewer Renovation 9Filter Plant & Clearwell
• Steam and Aeration projects: Improvements — Ph. 1A
Blower Systems • Walnut Creek — Ph. 13 ' Water Exchange
Renovations 0 Lafayette — Ph. 13
• Mechanical and 0 South Orinda — Ph. 7
Concrete Renovations 0 Danville — Ph. 3 GENERAL
• POB Seismic Upgrades 0 Large Diameter IMPROVEMENTS
• Outfall — Ph. 7 Inspection
• Enterprise Resource
• Piping Renovation — Pump Stations:
Ph. 10 Planning Replacement
• Ph. 1 Moraga/Cross Server Room Relocation
• UV Electrical Roads •
Information Technology
Improvements 0 Ph. 2 Martinez/ Development
• Annual Infrastructure Fairview/Maltby Vehicle Replacement
Program
• Equipment Acquisition
CENT15
■ .
NEW PROJECTS IN FY 2019-20 CIB
BY PROGRAM
Collection System (CS):
• Phase 1 of the CS Sewer Renovation will generate four new
project numbers for bidding and administration.
Treatment Plant (TP):
Piping Renovation - Ph. 10
Annual Infrastructure Replacement (Yearly budget - $3.28 M)
Condition Assessment of Buried Pipelines
General Improvements (GIS
• Enterprise Resource Planning (ERP) separated from
Information Technology (IT) Development project
Recycled Water (Reffl:
• Water Exchange Project ZA16
FY 2019=20 CIB
COLLECTION SYSTEM (CS) PROGRAM
MAJOR PROJECTS FOCUS
Sewer Renovation -
- Lafayette — Ph . 13 includes 11 ,000 ft. of sewers
Walnut Creek — Ph . 13 includes 8,200 ft. of sewers
South Orinda — Ph . 7 includes 8,900 ft. of sewers
Danville — Ph . 3 includes 5,500 ft. of sewers
Designs and bids for Lafayette, Moraga, Orinda, Martinez,
Walnut Creek, and other communities in the service area
Pump Stations Upgrades:
Final Design and bid of Pumping Station Upgrades — Ph . 1 for
Moraga, Orinda Crossroads, and Flush Kleen Pump Stations
Preliminary Design for Ph . 2 for three Martinez Pump Stations
•R
FY 2019=20 CS PROGRAM
TOTAL ESTIMATED COSTS PER PROJECT
FY 2019-20 Collection System Program Budget / Project Summary
Project Project Budget-to-Date FY 2019-20 Future FYs Total Project
Number Cost
5991 Pleasant Hill Sewer $460,000 $0 $2,500,000 $2,960,000
Renovation - Phase 2
6534 Harper Lane CAD * $800,000 $0 $0 $800,000
6679 Cordell Drive CAD * $123,443 $0 $0 $123,443
8419 Collection System Planning $985,000 $200,000 $600,000 $1,785,000
8436 Pumping Station Upgrades - $3,747,000 $4,600,000 $19,503,000 $27,850,000
Phase 1
8441 CIPP Contract 2017-2020 $400,000 $200,000 $0 $600,000
8442 PS Equipment and Piping $61,000 $103,000 $600,000 $764,000
Replacement- Phase 2
8443 Large Diameter Pipeline $250,000 $515,000 $1,060,000 $1,825,000
Inspection Program
8444 Force Main Inspection $125,000 $0 $1,800,000 $1,925,000
Program
' 8
* CAD: Contractual Assessment District Proiect
"- CENTRALSAN
FY 2019=20 CS PROGRAM
TOTAL ESTIMATED COSTS PER PROJECT (CONT' D)
FY 2019-20 Collection System Program Budget / Project Summary Continued
Project Project ■ , 2019-20 Future FYs Total Project
Number Cost
8447 Pumping Station Security $156,000 $51,000 $371,000 $578,000
Improvements
8448 Manhole Modifications $700,000 $309,000 $1,280,000 $2,289,000
8449 Collection System Modeling $200,000 $103,000 $212,000 $515,000
Support
8450 Development Sewerage $1,130,000 $900,000 $6,300,000 $8,330,000
Support
8451 Collection System Sewer $462,527 $4,473,000 $37,644,000 $42,579,527
Renovation Phase 1
8452 Lafayette Sewer Renovation $500,000 $3,817,000 $0 $4,317,000
- Phase 13
8454 South Orinda Sewer $500,000 $3,637,000 $0 $4,137,000
Renovation - Phase 7
8455 Walnut Creek Sewer $500,000 $3,621,000 $0 $4,121,000
Renovation - Phase 13
8456 Danville Sewer Renovation - $500,000 $4,100,000 $0 $4,600,000
Phase 3
8457 Pumping Stations Upgrades Phase 2 $50,000 $500,000 $25,900,000 $26,450,000
-
Total Program: $11,649,970 $27,129,000 $97,770,000 $136,548,970
' 9
FY 2019-20 CIB
TREATMENT PLANT (TP) PROGRAM
MAJOR PROJECTS FOCUS
Rehabilitation and Replacement:
Steam and Aeration Blower Systems Renovation (Planning)
Outfall Project — Phase 7 (Design)
Solids Handling Facility Improvements (Final Design)
Piping Renovation — Ph. 9 (Construction)
POB Seismic Upgrade (Construction)
Plant Control System I/O Replacement (Construction)
Mechanical & Concrete Renovations (Construction)
Regulatory and Safety:
Wet scrubbers replacement for the Solids Project (Final Design)
Safety Enhancements — Ph . 5 (Construction)
' 10
CENTRALSAN
FY 2019=20 TP PROGRAM
TOTAL ESTIMATED COSTS PER PROJECT
FY 2019-20 Treatment Plant Program Budget / Project Summary
� . iWill
K.77297292 Switchgear Refurbishment- $970,000 $200,000 $0 $1,170,000
Phase 2
7304 Programmable Logic Control $485,000 $0 $234,000 $719,000
Systems Upgrades
7315 Applied Research Innovations $557,274 $300,000 $1,500,000 $2,357,274
7317 Plant Control System Network $780,000 $120,000 $0 $900,000
Upgrades
7322 Fire Protection System - Phase $1,406,000 $0 $0 $1,406,000
7327 Headworks Screenings $8,700,000 $0 $0 $8,700,000
Upgrade
7328 Influent Pump Electrical $610,000 $800,000 $4,000,000 $5,410,000
Improvements
7330 Piping Renovation - Phase 9 $3,180,000 $0 $0 $3,180,000
7339 Plant Control System 1/0 $1,370,000 $1,100,000 $2,028,000 $4,498,000
Replacement
7341 Walnut Creek/ Grayson Creek $100,000 $200,000 $900,000 $1,200,000
Levee Rehab
\� 7348 Solids Handling Facility $10,690,000 $6,550,000 $76,136,000 $93,376,000
Improvements
7349 Steam and Aeration Blower $1,500,000 $3,500,000 $57,000,000 $62,000,000
Systems Renovations
' 11
y�=� CENTRALSAN
FY 2019=20 TP PROGRAM
TOTAL ESTIMATED COSTS PER PROJECT (CONT' D)
FY 2019-20 Treatment Plant Program Budget / Project Summary Continued
Project Project t4o-DfiM19-20 Future FYs Total Project
Number �ft Cost
7351 Mechanical and Concrete $5,044,000 $6,400,000 $2,603,000 $14,047,000
Renovations
7352 Ultraviolet Disinfection $500,000 $600,000 $0 $1,100,000
Upgrades
7353 Outfall Improvements- Phase $100,000 $500,000 $4,900,000 $5,500,000
7
7354 Treatment Plant Security $137,000 $718,000 $950,000 $1,805,000
Improvements
7355 Odor Control Upgrades - $0 $0 $1,600,000 $1,600,000
Phase 1
7357 Plant-Wide Instrumentation $290,000 $450,000 $1,321,000 $2,061,000
Upgrades
7359 Solids Conditioning Building $1,300,000 $0 $0 $1,300,000
Roof Replacement
7360 Existing Facilities As-lis $200,000 $100,000 $0 $300,000
Drawings
7362 POB Seismic Upgrades $3,331,177 $2,793,000 $0 $6,124,177
7363 Treatment Plant Planning $900,000 $500,000 $1,000,000 $2,400,000
7364 TP Safety Enhancement- $100,000 $600,000 $0 $700,000
Phase 5
7369 Piping Renovation — Ph. 10 $0 $750,000 $3,000,000 $3,750,000
Annual Infrastructure
7370 Replacement $0 $2,200,000 $30,600,000 $32,800,000
rr 7371 Condition Assessment of $0 $250,000 $750,000 $1,000,000
Buried Pipelines
Total Program: $42,250,451 $28,631,000 $188,522,000 $259,403,451 000C ' 12
FY 2019=20
GENERAL IMPROVEMENT PROGRAM
MAJOR PROJECTs FOCUS
IT Development:
ERP Replacement
IT Infrastructure Improvements ERP1d
Building Improvements:
Server Room Relocation (Construction)
Security Improvements (Design)
Vehicle Replacement Program
Al
I6
CENTRALSAN
FY 2019-20 GI PROGRAM
TOTAL *'TIMATED COSTS PER PROJECT
FY 2019-20 General Improvements Program Budget / Project Summary
rojec
. . ■ . el IWU Cost
Number
8207 General Security and Access $134,977 $150,000 $100,000 $384,977
8230 Capital Legal Services $178,665 $20,000 $40,000 $238,665
8236 District Easement Acquisition $258,047 $75,000 $150,000 $483,047
8240 IT Development $2,838,794 $500,000 $1,260,000 $4,598,794
8243 Server Room Relocation $2,000,000 $0 $0 $2,000,000
8249 Collection System Operations $60,000 $0 $0 $60,000
Dump Pad Modifications
8250 Enterprise Resource Planning $500,000 $2,000,000 $1,500,000 $4,000,000
Replacement
8251 Capital Improvement Program $0 $350,000 $950,000 $1,300,000
and Budget Improvements
8516 Equipment Acquisition $876,000 $100,000 $1,000,000 $1,976,000
8517 Vehicle Replacement Program $1,849,000 $1,069,000 $5,400,000 $8,318,000
Total Program: $8,695,483 $4,264,000 $10,400,000 $23,359,483
' 14
FY 2019-20
RECYCLED WATER PROGRAM
MAJOR PROJECTS FOCUS
Rehabilitation and Replacement:
• Filter Plant & Clearwell Improvements — Ph. 1A (Final Design)
Planning:
• Zone 1 Recycled Water System (Ongoing program)
ReW Distribution System Renovations
Surge Analysis
Water Exchange
' 15
CENTRALSAN
FY 2018-19 REW PROGRAM
TOTAL ESTIMATED COSTS PER PROJECT
FY 2019-20 Recycled Water Program Budget / Project Summary
Project Project . . ■ . i Future FYs Total Project Cost
Number
7306 Zone 1 Recycled Water $532,894 $100,000 $106,000 $738,894
7346 Recycled Water Distribution $205,000 $0 $0 $205,000
System Surge Analysis
7361 Filter Plant & Clearwell $2,537,000 $3,452,000 $27,011,000 $33,000,000
Improvements— Phase 1A
7365 Recycled Water Clearwell $1,700,000 $0 $0 $1,700,000
Repairs
7366 Recycled Water Distribution $15,000 $500,000 $1,600,000 $2,115,000
System Renovations Program
7368 Water Exchange Project $250,000 $100,000 $0 $350,000
Total Program: $5,239,894 $4,152,000 $28,717,000 $38,108,894
' 16
$867
Ten-Year Program:
In,F101132Pro ramI Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028Fisca
.g r Year Total 2020 2021 2022 2023r r25 2026 2027r
Collection System 349,511,000 27,129,000 36,732,000 37,713,000 40,298,000 35,432,000 32,660,000 37,215,000 27,812,000 29,993,000 44,527,000
Treatment Plant 413,202,000 28,631,000 45,801,000 52,895,000 53,492,000 46,429,000 43,750,000 44,170,000 33,094,000 40,100,000 24,840,000
General Improvements 24,893,000 4,264,000 3,407,000 2,861,000 2,511,000 1,975,000 1,975,000 1,975,000 1,975,000 1,975,000 1,975,000
Recycled Water 55,119,000 4,152,000 8,253,000 10,253,000 7,450,000 3,861,000 2,750,000 6,350,000 5,850,000 5,850,000 350,000
Subtotal 842,725,000 64,176,000 94,193,000 103,722,000 103,751,000 87,697,000 81,135,000 89,710,000 68,731,000 77,918,000 71,692,000
Contingency 24,500,000 2,000,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
Total with
Contingency $ 867,225,000 $ 66,176,000 $96,693 000 $106,222,000 $1065251,000 $ 90,197,000 $ 83,635,000 $ 92,210 000 $71,231,000 $80,418,000 $74 192 000
(Note:All costs in
2019 dollars)
$12a❑
SIM G
Seo.o - -
S2o.o -
�n n
FeISue 29 Ff��'i 2D F,2Cr 2-L R'21};;�— Fr 221'23 F;233}2{. Fe Z,4,'25 Fr23i20 Ff2Gf r, F72iicB FY28{29
❑43arrd rrVp?rp--v ■GenemI foPFO we� M PA cyd42d Vuater ❑OONSdion Stern M-rmat rem PI am
' 17 .
CENTRALSAN
$867
-1w
Programs 10 Year Total
Collection System $ 34935113000
Treatment Plant $ 41332025000
General Improvements $ 2498933000
Recycled Water $ 5531193000
Subtotal $ 84237253000
Contingency $ 24,5003000
Total with Contingency $ 86732253000
* All cost in 2019 Dollars
118
CENTRALSAN
QUESTIONS
W.A
Page 46 of 310
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May 16, 2019 Regular Board Meeting Agenda Packet- Page 270 of 549
Page 47 of 310
Page Intentionally Blank
May 16, 2019 Regular Board Meeting Agenda Packet- Page 271 of 549
Page 48 of 310
FY 2019-20 lFkm
BOARD OF DIRECTORS
r
1
w
1
P '
Paul H. Causey James A. Nejedly David R. Williams Michael R. McGill Tad J. Pilecki
Board Member Board Member Board President Board President Board Member
Pro Tem
EXECUTIVE MANAGEMENT
Roger S. Bailey, General Manager Ann Sasaki, Deputy General Manager/
Jean-Marc Petit, Director of Director of Operations
Engineering and Technical Services Kenton Alm, Counsel for the District
Philip Leiber, Director of Finance and Katie Young, Secretary of the District
Administration
1 CONTACT FOR COPIES
Central San Finance Division, 5019 Imhoff Place, Martinez, CA 94553,925-228-9500
To view or download an electronic version,visit http://www.centralsan.org
40 _
May 16, 2019 Regular Board Meeting Agenda Packet- Page 272 of 549
Page 49 of 310
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May 16, 2019 Regular Board Meeting Agenda Packet- Page 273 of 549
D CENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
VISION ,
MISSION ,
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
is Value customers •Value water sector . Be truthful and honest Commitment
and employees partners • passionate and
• Be fair,kind and Promote a
• Respect each other • Foster excellent 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 our challenges . guild partnerships healthful environment
-' �_ p..�� -_�"erg. .• .,��irW .¢+' � �,.
ot
Page 51 of 310
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May 16, 2019 Regular Board Meeting Agenda Packet- Page 275 of 549
Page 52 of 310
GOVERNMENT FINANCE OFFICERS ASSOOIATCON
Distinguished
Budget Presentation
Award
PRESENTED TO
Central Contra Costa Sanitary District
California
For the Fiscal Year Beginning
July 1, 2018
Exccutivc Dircctor
The Government Finance Officers Association of the United States and Canada presented a Distinguished
Budget Presentation Award to Central San for its Annual Budget for the fiscal year beginning July 1, 2018.
In order to receive this award, a governmental unit must publish a budget document that meets program
criteria as a policy document,as a financial plan,as an operations guide,and as a communications device.
Central San believes this budget document continues to conform to program requirements.
May 16, 2019 Regular Board Meeting Agenda Packet- Page 276 of 549
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Table of Contents
Introduction
General Manager's Message..........................................................................................................................................11
AboutCentral San...........................................................................................................................................................14
OrganizationalStructure.................................................................................................................................................19
Budgeting Calendar, Process, and Spending Authorities................................................................................................20
StrategicPlan Summary..................................................................................................................................................23
Financial Overview
FinancialOverview..........................................................................................................................................................27
Financial Planning Policies
FiscalPlanning Policies....................................................................................................................................................29
FiscalReserves Policy......................................................................................................................................................29
Basisfor Budgeting.........................................................................................................................................................29
Debt Management and Continuing Disclosure Policy....................................................................................................30
InvestmentPolicy ...........................................................................................................................................................30
CurrentFinancial Plan.....................................................................................................................................................31
Operations and Maintenance.........................................................................................................................................32
Capital.............................................................................................................................................................................32
Financial Summary
FinancialSummary..........................................................................................................................................................33
Sourcesof Funds.............................................................................................................................................................34
SewerService Charge .....................................................................................................................................................38
Useof Funds...................................................................................................................................................................41
Operations and Maintenance Budget Overview............................................................................................................42
Variances in Operations and Maintenance Budget........................................................................................................44
Operations and Maintenance Budget by Operating Departments.................................................................................47
Historical Variances in the Operations and Management Spending..............................................................................48
Staffing, Salaries,and Benefits .......................................................................................................................................49
BudgetedFull Time Equivalents......................................................................................................................................50
StaffingChanges.............................................................................................................................................................51
CapitalImprovement Budget..........................................................................................................................................51
Impact of Capital Improvement Plan on Ongoing Operations and Maintenance Budget..............................................53
ReserveProjections........................................................................................................................................................54
DebtService....................................................................................................................................................................56
Long-Term Spending Trend.............................................................................................................................................57
Operating Departments
OperatingDepartments..................................................................................................................................................59
AdministrationDepartment ...........................................................................................................................................60
Engineering and Technical Services Department...........................................................................................................91
OperationsDepartment................................................................................................................................................106
Self-Insurance Program
Self-Insurance Program ................................................................................................................................................127
Capital Improvement Program
Capital Improvement Program .....................................................................................................................................135
Ten-Year Capital Improvement Plan
Ten-Year Capital Improvement Plan.............................................................................................................................217
Debt Program
DebtProgram................................................................................................................................................................232
Strategic Performance
StrategicPerformance..................................................................................................................................................240
Supplemental Financial Information
Supplemental Financial Information.............................................................................................................................248
Glossary and Acronyms
Terms, Definitions,Acronyms and Abbreviations Used in Budget Document.............................................................255
May 16, 2019 Regular Board Meeting Agenda Packet- Page 278 of 549
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General Manager's Message
Board of Directors:
I am proud to present the Central Contra Costa Sanitary District's (Central San) Fiscal Year (FY) 2019-20
combined budget. This budget reflects Central San's unwavering commitment to protecting public
health and the environment in a fiscally responsible, innovative, and customer-focused manner.
A Year of Milestones
This was a year of noteworthy accomplishments for Central San. We celebrated our 21St Platinum Peak
Performance Award, with only a few agencies receiving this prestigious honor given by the National
Association of Clean Water Agencies for 100% compliance with our treatment plant permit. This award
reflects our commitment to environmental protection and strengthens our role as an industry leader.
We also realized significant savings through bond refinancing and implemented numerous
infrastructure projects in alignment with our 20-year master plan, including the following:
�a • The replacement of 11 miles of neighborhood sewer pipes.
The completion of the Headworks Project, which replaced
- outdated bar screens with new technology that removes over
276 tons of plastic and debris per year from incoming wastewater.
J.4'xy WI
t
The seismic upgrade of our Pump and Blower Building. This
g building houses critical large pumps and equipment that convey
wastewater through the treatment process.
' • The completion of the award-winning Wet Scrubber Research
Project. This project tested a new air cleaning technology system,
- saving over$14 million in capital costs.
60
Embracing the Future
The current fiscal year established a strong foundation for our future endeavors. Our use of long-term
strategic planning and cost-saving initiatives allows significant reduction in our operation and
maintenance budget without compromising the high-quality services our customers have come to
expect from Central San. Further, this budget includes several initiatives that will enhance productivity
and decrease costs. These initiatives include the implementation of a new Enterprise Resource
Planning (ERP) system, the transition to California Public Employees' Retirement System (CaIPERS)
health benefits and the completion of critical capital projects.
The current ERP system, which is used to manage an array of human resource, financial, and
purchasing and inventory information, is more than twenty years old. The implementation of a new
ERP system will streamline processes, increase functionality and provide better reporting tools to help
Central San manage our resources. The transition to CalPERS health benefits comes with significant
cost-savings, which will allow us to concentrate more funds on capital improvements. These savings
11
May 16, 2019 Regular Board Meeting Agenda Packet- Page 280 of 549
Page 57 of 310
are timely and will be applied to critical infrastructure projects including renovations to our solids
handling and recycled water production and storage facilities.
Accomplishments within our Strategic Plan Goals
GOAL 6 GOAL
Below are some of Central San's major accomplishments Embrace Provide
under each of the six goals in the Strategic Plan: technology, exceptional
innovation,and customer service
GOALONE Provide exceptional
' customer service
• Successful completion of the GOALS Fiscal Year •
fourth Central San Academy, Maintain a 2018-20 Strive to meet
a program whichreliable regulatory
GOALS
requirements
educates our customers infrastructure
on the mission of CentralGOAL 4 GOAL
San and how it is fulfilled Develop and Be a fiscally,Focused outreach efforts to retain a highly responsible
showcase completion of major trained and and effective
h, innovative
infrastructure projects that will workforce utility
increase reliability and add value for
customers
GOAL TWO Strive to meet regulatory requirements
• Achieved 21 consecutive years of 100%compliance with our National Pollutant
1 Discharge Elimination System Permit,governing our wastewater discharge
/ Increased collection at the Household Hazardous Waste Collection Facility and
pharmaceutical drop-off sites
• Reduced sanitary sewer overflows from a high of 162 in 2012 to an all-time low of 28
(1.85 per 100 miles)
• , Be a fiscally responsible and effective wastewater utility
• Switched to CalPERS health benefits for employees and retirees, saving$5.8 million
annually effective July 2019
• Refinanced debt to save over$8.2 million in interest costs over the next ten years
• Achieved 18 consecutive years of receiving the Government Finance Officers
Association Certificate of Achievement for Excellence in Financial Reporting
• Awarded the Government Finance Officers Association Distinguished Budget
Presentation Award for the FY 2018-19 Budget
• Initiated a benchmarking study to compare Central San's performance over the past
three fiscal years to comparable agencies' performance statewide and regionwide
Me-
Develop and retain a highly trained and innovative workforce
• Hosted bi-monthly HR @ Your Service trainings for employees
• Held the second Supervisory Academy and started the third Management Academy
• Paired mentors and mentees in the third year of the Central San Mentorship Program
12
May 16, 2019 Regular Board Meeting Agenda Packet- Page 281 of 549
Page 58 of 310
GOAL FIVE Maintain a reliable infrastructure
• Began Plant Operations Building Seismic Improvements and Energy and Aeration Project
• • Cleaned 778 miles of sanitary sewers and televised 205 miles of sanitary sewers
• Implemented a comprehensive Asset Management Program to track assets and
optimize maintenance through their lifecycle
• Embrace technology,innovation,and environmental sustainability
• Continued membership in the Leading Utilities of the World, a global network of the
most successful and innovative water and wastewater utilities
• Began Hydrothermal Processing of Wastewater Solids Project,to investigate the
potential to turn wastewater solids into biofuels
• Formalized an Optimizations Program to identify opportunities for increased efficiency
and to establish a framework for tracking and committing to innovations and
continuous improvement
• Continued to work on Recycled Water Exchange Project
We take great pride in the critical work we do at Central San and in our dedication to excellence. This
budget reflects that continued dedication and our pursuit of the highest levels of reliability and service
for the residents of central Contra Costa County.
Continuing Our Progress
The FY 2019-20 Budget will enable Central San to address our challenges and successfully complete
the goals for FY 2019-20 as 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 and providing them the highest value. 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.
, %
(Roger S. Bailey
eneral Manager
13
May 16, 2019 Regular Board Meeting Agenda Packet- Page 282 of 549
Page 59 of 310
About Central San
Established in 1946, Central San is located about 30 miles northeast of San Francisco and provides
wastewater services for nearly 500,000 residents and more than 3,000 businesses in central
Contra Costa County. This service territory covers 182 square miles and includes Alamo,Clyde, Danville,
Lafayette, Martinez, Moraga, Orinda, Pacheco, Pleasant Hill, San Ramon, Walnut Creek, and
unincorporated areas within central Contra Costa County. Central San also treats wastewater for
residents of Concord and Clayton under a 1974 contract with the City of Concord.
Suis urr Bay
Sewage collection and wastewater
4 treatment; household hazardous
Martinez + waste (HHW) disposal
Concord Wastewater treatment and HHW
Pleasant Clayton disposal for residents in Concord and
Hill
Clayton by contract
Walnut
as r Creek
Lafayette HHW disposal only
Orinda
Moraga • Central San headquarters, treatment
plant, HHW Facility, and Residential
Danville Recycled Water Fill Station
■ Collection System Operations
San Ramon headquarters
a
N
._ �. Central San by the Numbers
• Maintain over 1,500 miles of sewer pipelines
4 • Operate 18 pumping stations to send non-gravity-fed flow to the plant
• Treat an average annual flow of 34.7 million gallons per day of wastewater
ss9
• Treat 2.4 million gallons per day further to produce recycled water for
!"A non-potable use such as irrigation and industrial applications
• Reuse, recycle, recover, or safely dispose of 2.2 million pounds of HHW per
— year
• Collect 17,000 pounds of unwanted medications per year through the
-4 Pharmaceutical Disposal Program
`A$- . • Achieve a high customer satisfaction rating for sewer emergency response
�- (3.9 out of 4.0 as of Q3 in FY 2019-20)
_'� "µ • Educate approximately 3,000 students in pollution prevention per year
• Lead approximately 250 participants in treatment plant tours per year
14
May 16, 2019 Regular Board Meeting Agenda Packet- Page 283 of 549
Page 60 of 310
Community Profile
For over 70 years, Central San has been proud to serve its customers in the San Francisco Bay Area,
specifically, in the central Contra Costa County region. The service area is located at the foot of
Mount Diablo (3,848 feet), whose state park and foothills offer hiking trails and open space preserves
that are frequently used by the neighboring residents.
The cities served by Central San are also some of the
most historic in California. Martinez, where the
headquarters is located, was a key crossing point
over the Carquinez Strait for the Pony Express, and
its downtown is notable for its preserved historic
buildings, including the John Muir National Historic
Site. A short distance away, Concord, Walnut Creek,
and San Ramon boast revitalized shopping districts,
drawing retailers and restaurants from other parts of
the state to open locations there. One of Central }
San's largest customers, the City of Concord, is
working on converting a former Naval Weapons
Station into a Community Reuse Project, which will lk
include parks, housing, office, 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 the
service area has boomed, partially due to
its accessibility to San Francisco and
Silicon Valley via public transit. Most of
the population of Contra Costa County
lies along the busy 1-680 corridor that
- -- connects the North Bay to Silicon Valley.
As shown in the following tables, the area
in which Central San operates is a
growing community to whom this agency
is honored to provide its core services,
including educational messaging to instill
the environmental values foundational to
Central San as an organization.
15
May 16, 2019 Regular Board Meeting Agenda Packet- Page 284 of 549
Page 61 of 310
Service Area Population (Last Ten Years)
BoundariesAs of January 1 Inside District
2009 322,200 134,000 456,200 1.0%
2010 319,377 135,378 454,755 -0.3%
2011 321,800 133,600 455,400 -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%
2017 344,591 139,654 484,245 0.6%
2018 348,333 140,590 488,923 1.0%
Population by Community (2010 and 2018)
Community* As of January 1,2010 As of January 1,2018
Clayton 10,936 11,431
Concord 124,442 129,159
Danville 43,110 44,396
Lafayette 24,206 25,655
Martinez 21,078 20,908
Moraga 14,701 16,991
Orinda 17,799 19,199
Pleasant Hill 33,384 35,068
San Ramon 51,099 68,118
Walnut Creek 65,443 70,667
Unincorporated Contra Costa County 48,557 47,331
Total Service Area 454,755 488,923
Contra Costa County Total 1,073,055 1,149,363
*Central San shares service of these communities with other agencies, and adjustments for the populations served by those
other agencies have been made.
Source: California Department of Finance, Demographic Research Unit and local agency service records
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Ten Largest Customers by Sewer Service Charge (FY 2017-18)
Customer • . Operating Revenue
City of Concord* $14,973,623 1 16.19%
Contra Costa County General Services** $556,782 2 0.60%
First Walnut Creek Mutual $487,350 3 0.53%
Park Regency Apartments $457,596 4 0.49%
Second Walnut Creek Mutual Apartments $387,750 5 0.42%
Sunvalley Shopping Center $354,208 6 0.38%
John Muir Health** $278,589 7 0.30%
San Ramon Unified School District $247,766 8 0.27%
Willows Shopping Center $236,285 9 0.26%
Branch Creek Vista Apartments $205,200 10 0.22%
Total $18,185,149 - 19.66%
* Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton
**Contra Costa County General Services and John Muir Health are permitted industries
Active Service Accounts and FY Sewer Service Charge Billings (FY 2017-18)
User Group Accounts 2017-18 Sewer Service %of Total
Charge Billings
Residential 113,602 $72,351,472 81%
Mixed Use 423 $5,761,927 6%
Office 967 $2,319,555 3%
Hotel/Motel 23 $1,174,330 1%
Food Service 164 $1,098,961 1%
Businesses 384 $662,265 1%
Recreation/Entertainment 137 $651,823 1%
Automotive/Car Wash 240 $630,988 1%
Market/Supermarket 40 $482,969 1%
Industrial Permitted 9 $477,127 1%
All Other User Groups 994 $4,097,581 5%
Total 116,983 $89,708,998 100%
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Ten Largest Employers in Contra Costa County (2017)
Employers . .
Employment
Chevron Corporation 10,000+ 1 1.89%
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%
USS-POSCO Industries 1,000-4,999 T-2 0.56%
All Others 495,400 - 93.07%
Total 532,400 - 100.00%
Source: County of Contra Costa, California,California Annual Financial Report for June 30, 2017,Statistical Section, principal
employers excludes government employers
Economic Statistics for Contra Costa County(Last Ten FYs)
Per Capita Average Annual
IFY Ended June 30 Population* Personal Income* Personal Incorne* unemployment
2008 1,023,344 $60,281,111,000 58,906 6.3%
2009 1,037,890 $56,296,792,000 54,242 10.8%
2010 1,052,875 $56,882,501,000 54,030 11.3%
2011 1,066,126 $61,498,902,000 57,681 10.4%
2012 1,079,093 $66,772,041,000 61,878 9.0%
2013 1,096,310 $67,290,115,000 61,435 7.4%
2014 1,110,971 $71,164,468,000 64,056 6.2%
2015 1,126,027 $77,914,957,000 69,195 5.0%
2016 1,138,645 $82,204,425,000 72,195 4.4%
2017 1,147,439 $87,810,279,000 76,527 3.8%
* Source: U.S. Department of Commerce, Bureau of Economic Analysis. Estimates for 2010-2016 reflect county population
estimates available as of March 2018
**Source:State of California, Employment Development Department,annual calendar figure
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Organizational Structure
Central San is governed by a Board of
Directors (Board) whose five
members are elected at-large on a Electorate
non-partisan basis and serve a four-
year term. Board of
Directors
The Board appoints the General
Manager, the Counsel for the Secretary of the Counsel for the
General Manager
District District
District, and the Secretary of the
District.
Director cf=inance& Depdty Gegeral ]cedar of
Administration N a na ge r Engi neeri ng&
Technical Services
Central San is organized into three -
departments: Finance and
Infvrrnation Human Resources
Administration, Engineering and Technology Capital Projects
Technical Services, and Operations.
I
Collec.ion System Environmemal&
Finance Operations
tory
Central San currently has 291 Copfa
mn e
budgeted full-time employees, and F_
this number has remained the same —Purchasing& Plart A4ainer--ante
Material s Services
for the past three years. �D .Lp-enls
communication
vices& - Pan-.Operations
This team of employees is led by a ntergServernmental
i Relations
General Manager, a Deputy General _
Manager, two Department Directors,
R'sk N'a na ee mentSafely
and 11 Division Managers.
LlRecycled Water
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.
r•
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Budgeting Calendar, Process, and Spending Authorities
The budget development process for FY 2019-20 started midway through FY 2018-19 with the updated
financial plan, followed by Board review of the financial plan in a workshop held in January 2019.
Board input was used in further internal budget development during February, leading to extensive
internal review of the proposed budget in March.
Several cycles, or passes, of budget development took place thereafter. Initial budget proposals were
input in Pass One, after which the General Manager, Director of Finance and Administration, and each
division manager met to review results. Required changes were input in Pass Two, another review
session was held, and final changes were input in the Final Pass. Development of the budget was
finalized in April and May, producing a draft which was provided to the Board in May. The Operations
and Maintenance sections were reviewed by the Board Finance Committee, and the capital budget was
reviewed by the Board Engineering & Operations Committee prior to Board adoption of the final
budget in June.
The budget process typically is aligned with two other key planning processes: strategic planning,
which covers a two-year window, and rate-setting.
FY 2019-20 is the second year of a two-year Strategic Plan that commenced in FY 2018-19. The
strategic goals, strategies, initiatives, key success measures, and metrics of that plan were established
during early 2018 and provide guidance for funding activities in the budget. The budget proposes a
level of funding that will enable and achieve the goals set forth in the two-year strategic plan.
Additionally, during FY 2018-19, staff presented an update of the financial plan and commenced a
discussion about the need for rate adjustments. During the financial workshop in January 2019, the
Board provided staff with tentative direction to prepare a multi-year rate adjustment which would be
announced through a Proposition 218 notification process in March and a public hearing on proposed
rate adjustments on April 18. At that meeting, the Board adopted a four-year schedule of adjustments,
with increases of 5.5%, 5.2%, 4.9%, and 4.2%for single family residential customers, which were
elements of the 5.25%, 5.25%, 4.75%, and 4.75% average increases across all customer classes. Annual
public hearings will be conducted for years two through four to determine if lesser rate adjustments
are possible.
A conceptual diagram summarizing the budget and rate development process is provided below.
JULY-OCTOBER
Identify Key Financial Issues
-Place Prior Year SSC . Roll NOVEMBER-JANUARY
Workshops,-Conduct Board of Directors
NOVEMBER-JAN ARY
Fcmoe,lOul Financial Proje tions
DeveloperCommittee Meetings -Refine Issues
-Conduct Capacity& Refine Issues
..
*DevelopOutreach Financial Projections
-Conduct Public Hearings *Conduct Financial Planning
• ..
.-Adopt Final Budget and
-Receive Board of Directors'
Direction
•Prepare Proposition 218 Plan
•Conduct Proposition 2 18
Outreach
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A calendar of key intersecting events during the process for the FY 2019-20 budget is provided below,
comprised of activities from the three aforementioned critical business areas of the planning process:
the Strategic Plan, Budget, and Rate Setting.
Key Strategic Plan, Budget, and Rate Setting Events for FY 2019-20 Budget
Date Strategic Plan Budget Rate Setting
Board Rate Workshop
(Review of Financial
Plan Including Updates
January-March 2019 N/A N/A to the Ten-Year Capital
Improvement Plan and
Capital Improvement
Budget)
Departments/Divisions
February 2019 N/A Develop and Submit N/A
Operating Budget Proposals
Staff Reviews Q3 Strategic
Accomplishments(Review is General Manager reviews Proposition 218 Notices
March 2019 Performed on a Quarterly Operating Budget with Sent to Property
Basis) Departments/Divisions Owners
Draft Operating Budget
Finalized with
Departments/Divisions Public Hearing on
April 2019 N/A Adoption of Proposed
Draft Ten-Year CIP Finalized Rate Increase
by Engineering Department
Draft Operating Budget
Presented to the Finance
Committee and the Board
May 2019 N/A Draft Capital Improvement N/A
Budget and Ten-Year CIP
Budget Presented to the
Engineering&Operations
Committee and the Board
Public Hearing on
Staff Reviews Year-End Public Hearing on Adoption Adoption of Capacity
June 2019 and Developer Related
Accomplishments of Final Budget
Fees, Rates,and
Charges
Once the budget is adopted, the General Manager has the authority to spend within the overall
budget. Payments are governed by the limits set in the General Manager Delegation of Authority.
Individual supervisors and managers are granted authority for purchase requisitions, approvals, and
payment authorizations consistent with the signature limit matrix by position that serves as a partial
delegation of some of the General Manager authority. Certain expenditures over$100,000 require
Board approval.
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Spending is monitored monthly internally by staff and by the Board; variances of more than 10% on
individual budget line item categories are highlighted and subject to discussion by the Finance
Committee. All expenditures are submitted monthly to the Finance Committee and the Board for
review and approval. 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.
Should it become necessary to spend more than the overall Operations and Maintenance, Capital, Debt
Service or Self Insurance budget, formal actual would be required to adopt and amended budget.
For the Capital Improvement Program, budgets for projects are set 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. The Capital Improvement Budget also includes a
$2.0 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.
The General Manager has the authority to spend up to the budgeted amounts for Debt Service. The
General Manager may also spend Self-Insurance Fund reserves to pay claims and claims expenses
within the self-insured retention ($500,000) during the fiscal year.
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Strategic Plan Summary
Central San developed a two-year Strategic Plan for FYs 2018-20 that establishes policy direction and
outlines core commitments, focused initiatives, and key performance metrics. This document evolved
from the FY 2016-18 Strategic Plan and continued to utilize the Effective Utility Management
framework as an overarching tool.
Effective Utility Management was originally developed by the To view a complete copy
Environmental Protection Agency in collaboration with several of the Strategic Plan,
please visit
major water sector associations in 2007 and is made of
10 attributes which provide a succinct indication of where 'o ' "
ns
effectively managed utilities should focus and what they should
strive to achieve.
The Strategic Performance section at the end of this document goes into additional detail about the
Strategic Plan, including: 1) how the Strategic Plan Strategies and Initiatives align with Effective Utility
Management attributes and Central San core values and 2) which divisions are responsible for the
various initiatives.
Responding to Challenges
The Budget and Strategic Plan, as key planning documents, provide the resources and guidance
necessary to accomplish Central San's mission to protect public health and the environment and
overcome its challenges. Central San is committed to improving the quality of services provided to
its customers and will positively respond to major challenges as linked to the Strategic Plan goals, as
follows:
ResponseChallenge Primary
' Provide exceptional customer service
Addressing concerns and Continue commitment to customer outreach, Public outreach, including continuing
educating customers prioritization of the Ten-Year Capital funding for the highly successful
regarding required Improvement Plan, balance capital spending Central San Academy, educating
revenue/resources to with affordability and rate impact concerns. students on pollution prevention,and
replace aging infrastructure publishing the Pipeline community
and meet regulatory newsletter.
requirements.
UT' Strive to meet regulatory requirements
Increasingly stringent air Anticipate changing regulations and plan for Replacement of wet scrubber as part of
regulation requirements. cost-effective alternatives to maintain the Solids Handing Facilities
reliability and meet requirements. Improvement Project.
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ResponseChallenge Primary
' u= Be a fiscally responsible and effective wastewater utility
Maintaining responsible Offset infrastructure replacement, regulatory CalPERS health benefits transition,which
rates at an affordable level. responses,and other expenses with will save approximately$5.8 million per
cost-saving efforts,efficiencies, year in healthcare-related costs without
optimizations, and innovations. sacrificing benefits for employees.
Steam and Aeration Blower Systems
Replacement Study to optimize one of
the major energy sources of the
treatment process.
'' Develop and retain a highly trained and innovative workforce
40
YAWr
Fostering employee Recruit,train,and retain high quality Employee development programs such
engagement to harness employees. Develop characteristics of as internal leadership,training,and
human talent to meet the Central San's company culture to reaffirm mentorship programs and outside
challenges faced by priorities, recognize employees,and conferences,training, and professional
Central San. celebrate core values. association memberships to inspire
continuous education and improvement.
Replace ERP software and undergo
significant training to utilize this new
technology at the core of Central San's
business operations.
® Maintain a reliable infrastructure
Maintaining and upgrading Continue the effort which began in Major projects include the Solids
aging infrastructure, FY 2018-19 to implement the Handling Facility Improvements,
including increasing capital recommendations of the Comprehensive Pumping Station Improvements,Outfall
improvement investment Wastewater Master Plan with significantly Pipeline Inspection and Improvements,
and internal resources to increased capital investment. and Mechanical and Concrete Structures
deliver on these increased Rehabilitation.
levels of capital spending.
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ResponseChallenge Primary
Embrace technology,innovation,and environmental sustainability
The need for all water Partner with agencies to find water solutions The ongoing effort to bring to fruition a
sector agencies to play a benefiting the region and state. This includes Recycled Water Exchange with Contra
role in maintaining a looking for creative solutions such as water Costa Water District and Santa Clara
sustainable water supply exchanges and increased interagency Valley Water District to utilize recycled
with recent drought cooperation. water at nearby refineries in place of
experiences and the potable water to increase the amount of
continuing effects of potable water available to the
climate change. community.
Ever-increasing focus on Test and plan for alternative processes, Continue piloting new treatment
resource recovery and equipment,and technology that are technologies and researching potential
sustainability. sustainable and cost effective. solar energy projects.
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Financial Overview
Central San uses an enterprise fund to account for its operations. The single enterprise fund is
further segmented into 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 Collector's Office and are remitted to Central San in
two installments in April and December of each year. By contract, 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 Concord and Clayton
residents. Central San reserves five months (41.7%) of its gross operating expenditures at the start
of each fiscal year to pay its ongoing expenses throughout the 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 a portion of SSC revenues, which comprise a significant portion
of annual capital project revenues, are collected by the Contra Costa County Tax Collector's Office
and remitted to Central San in two installments in April and December of each year. In addition,
Capacity Fees received from permits are allocated to this 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 2019-20, the entire
Capital Projects budget will be cash funded. 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 of Directors (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 2019-20 is $3.0 million, a
decrease of approximately$600,000 from the $3.6 million budgeted in FY 2018-19. This decrease
is due to the debt refinancing completed in FY 2018-19, which will save $8.2 million in interest costs
through FY 2028-29. 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 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. Table 14 shows
projected reserve balances as of June 30, 2019 and June 30, 2020.
• 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.
• SIF 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 SIF.
• Debt Service Reserve (Bond Reserve)—The previously outstanding 2009 certificates of
participation (a type of borrowing) required the establishment and maintenance of a debt service
reserve fund defined in the loan documents. With the refinancing of that debt with 2018
revenue bonds, the debt service reserve fund was eliminated in September 2018, with the then
$4.86 million balance used to reduce the required issuance amount of the refunding debt. No debt
service reserve fund is now outstanding.
• Rate Stabilization Fund—The 2018 Revenue Bond documents provided that Central San could
establish and fund a discretionary rate stability fund. As of this date, a Rate Stabilization Fund has
not been established and funded.
Basis for Budgeting
Central San's Comprehensive Annual Financial Report 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
Comprehensive Annual Financial Report. 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.
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Central San presents a "balanced budget" each year, defined 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.
Debt Management and Continuing Disclosure Policy
In August 2017, the Board adopted Board Policy No. BP 029— Debt Management and Continuing
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 SSC rates, capacity fees, and/or taxes, while debt is
permitted for the remaining portion of the capital program. Currently, Central San is repaying a State
of California Water Reclamation Loan and 2009 Revenue Bonds. As of June 30, 2018, total outstanding
debt associated with infrastructure improvements was $29.095 million. In September 2018, that
number was reduced to $19.45 million as a result of debt refinancing. Central San's ten-year financial
plan anticipates external borrowing (subject to Board approval) during FY 2020-21; this is anticipated
to be in the form of either revenue bonds or a loan from the Clean Water State Revolving Fund and
Water Recycling Funding Programs of the State Water Resources Control Board. Central San applied
for an $89.0 million State Revolving Fund loan during December 2018 through a competitive process
and is final awaiting notification (expected in June 2019) of whether or not the loan request will be
granted.
Debt restrictions currently include the following:
• Revenue Pledge and Covenant—Central San pledges Property Tax Revenue, along with its net
revenues consisting of gross revenues less the cost of operating the wastewater system.
• Debt Service Coverage Ratios of at least 1.Ox (Gross Revenues including capacity fees and after
payment of O&M, plus tax revenues/Total Debt Service) and 1.25x (Gross revenues excluding
capacity fees and after payment of O&M plus tax revenues/Total Debt Service) are adhered to.
Central San's Debt Service Coverage Ratio is strong and benefits from minimal debt service as a result
of the District's current pay-as-you-go philosophy. This favorable coverage ratio is a factor in
Central San's very strong AAA and Aa1 credit ratings issued by Standard & Poor's and Moody's
respectively.
Investment Policy
Central San's investment policy, Board Policy No. BP 005—Statement of Investment Policy, last
updated in September 2018, 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. The County invests 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.
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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 (Other Post-Employment Benefits [OPEB]) 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 (OPEB) 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 is the Trust Administrator and Consultant. As of December 31, 2018, the GASB 45
(OPEB) Trust had a balance of$58 million.
The IRS Section 115 Pension Prefunding Trust was adopted during FY 2017-18 and was 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 direct any extra payment(s)to the Contra Costa County
Employees' Retirement Association (CCCERA), giving Central San greater retirement payment flexibility
in the future, while still reducing overall pension liability. In December 2017, the Board allocated
$2.0 million of the FY 2017-18 year-end favorable budget variance to the Pension Prefunding Trust.
Additional payments were made during FY 2018-19 from the $2.5 million budgeted towards paying
down unfunded liabilities included in the O&M Budget. As of December 31, 2018, the balance in the
fund was $5.7 million. 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.
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 healthcare 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 during financial planning and rate-setting workshops. 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 current financial plan reflects the proposed Ten-Year CIP spending levels identified in the
Comprehensive Wastewater Master Plan, as updated during periodic reviews of the spending plan.
The most recent review was conducted in late 2018 and presented at the January 15, 2019 Board
Financial Planning Workshop. The financial plan for FY 2019-20 estimated O&M spending at
$87.5 million and capital spending at $66.2 million, based on the following assumptions:
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Operations and Maintenance
• Funding for the initiatives addressed in the two-year Strategic Plan. Accordingly, Central San's
various planning documents are integrated and consistent.
• Updated O&M costs based on inflation and other cost-growth factors, including labor costs per the
maximum inflation assumptions in the memoranda of understanding with the bargaining units and
agreements with unrepresented employees.
• A key cost change anticipated for FY 2019-20 relates to an expected transition to CalPERS health
benefits, providing savings estimated at $5.6 million annually.
Once the proposed budget is adopted, the individual line items in the financial plan will be updated to
reflect the final budget, and the approved budget is used as a baseline for future years' planning.
Capital
The Ten-Year CIP was rolled forward one year (changing from $806 million to $833 million), then
inflated by 3%, to $860.9 million to be reflected in 2019 dollars. The amount was then updated by
refining cash flows, reducing expenditures by $29.3 million during the first three years, and smoothing
the overall shape of the spending projection while increasing overall spending by $6.3 million. This
update reflects a detailed assessment of Central San's latest needs and capacity to ramp up CIP
spending from the current levels, as well as reducing the pressure on rates in the near-term. As a
result of this change, previously anticipated rate adjustments of about 7% annually over the next two
years were projected to fall to the mid 5% range (and as noted, on April 18, the Board adopted system-
wide average increases of 5.25%, 5.25%, 4.75%, 4.75%for FY 2019-20 through FY 2022-23).
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Financial Summary
The FY 2019-20 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 costs. 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 total budget for FY 2019-20 is $157.8 million, representing an increase of$18.2 million, or
13.1%,compared to the FY 2018-19 budget of$139.6 million.
The driver of the increase in the total budget is a 46.0% increase in sewer construction investment,
from $45.3 million in FY 2018-19 to $66.2 million in FY 2019-20.
The FY 2019-20 O&M Budget is $87.6 million, a reduction of$2.1 million from the current FY 2018-19
budget of$89.7 million. As a result of the switch to CalPERS Health plans, the significant reduction in
benefit costs more than offsets increases in salaries and other costs, producing a net reduction of
$2.1 million.
Debt service is reduced by $0.6 million, a result of lower interest costs from the debt refinancing that
took place in FY 2018-19.
The Self-Insurance Fund (SIF) is set at $1.1 million for the costs of premiums and estimated losses
based on historical trends and represents a slight increase from the $0.9 million funding level of the
FY 2018-19 budget.
Table 1 - FY 2019-20 Total Budget
Expenditures Trend
Fund FY 2017-18 FY i i .•
Budget Actual Budget Budget Variance Variance
Operations and $89,713,587 $87,347,500 $89,720,456 $87,584,775 ($2,135,681) -2.4%
Maintenance
Sewer Construction $42,774,000 $36,696,049 $45,319,000 $66,176,000 $20,857,000 46.0%
Debt Service $3,819,099 $3,818,057 $3,611,038 $2,982,415 ($628,624) -17.4%
Self-Insurance $936,500 $697,793 $924,500 $1,073,700 $149,200 16.1%
Total Budget $137,243,186 $128,559,399 $139,574,994 $157,816,890 $18,241,896 13.1%
*With contribution to reserves of$1,349926 in FY 2019-20,total uses of funds is$159,166,815.
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Sources of Funds
The sources of funds (revenues) for FY 2019-20 are shown in Figure 1. A comparison of the major
revenue sources for FY 2019-20, the current year, and prior years are shown in Figure 2.
Figure 1 - Total Funding Sources - FY 2019-20 Proposed Budget
FY 2019-20 Total Budgeted Funding Sources of$159,166,815
Household Hazardous
Waste
All Other Sources $968,000
$7,016,400 1%
4% Recycled Water
$420,000
Capacity Fees 0%
$5,750,000
4%
Property Tax Revenue
$17,502,415
11% Sewer Service Charge
$101,310,000
City of Concord 64%
$26,200,000
16%
Figure 2 - Total Funding Sources - Three-Year Budget Comparison
FY 2017-18 FY 2018-19 FY 2019-20
$138,532,599 $147,386,287 $159,166,815
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$- MEN NNW
Sewer Service City of Concord Property Tax Capacity Fees All Other Sources Use of Reserves
Charge Revenue (see Table 12)
N FY 2017-18 Budget o FY 2018-19 Budget Y FY 2019-20 Budget
The SSC is the largest source of revenue at $101.3 million, followed by the City of Concord at
$26.2 million, ad valorem property tax at $17.5 million, and Capacity Fees at $5.8 million. All
other sources of revenue are $8.1 million. A brief description of Central San's revenue sources
and how they are forecasted follows:
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• Sewer Service Charge— Each customer in Central San's service area pays a sewer service charge
(SCC), which applies to both residential and non-residential customers. It is assessed annually on
the customer's property tax bill to pay for the collection and treatment of wastewater. SCC is
based on customer class.The basis for the charge is the strength and volume of the wastewater
discharged, and customers are assigned to various classes for billing purposes. SCCs vary by
customer class and have been developed to ensure that each class pays its proportionate share of
operating, maintaining, repairing, and upgrading the sewer collection and treatment system.
Periodic cost of service studies review and adjust the allocation of costs to individual customer
classes based on their impact to the sewer system. For residential customers, separate rates are
charged to single family and multi-family residences. Non-residential customers are typically billed
based on their water consumption and business type. For budgetary purposes, the forecast for the
SSC is based on prior year revenue, estimated growth derived from anticipated residential
construction, and predicted changes in non-residential water consumption.
• City of Concord —Central San receives revenues from the City of Concord which are calculated and
billed in accordance with the terms of a contractual agreement for the treatment of wastewater
from both the city of Concord and the city of Clayton. The Cities are responsible for paying their
flow-proportional share of the operating and maintenance costs for Central San's 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.
• Property Tax Revenue—Central San receives a share of the ad valorem property taxes collected by
Contra Costa County on properties within the service area. These taxes are used to pay debt
service requirements, and the remaining funds are allocated to the CIP. This revenue is forecast by
reviewing historic property tax revenue and adjusting for anticipated changes in property value.
• Capacity Fees—These fees are collected from new construction and expansion of non-residential
facilities which results in an added wastewater burden. The fee is calculated as an equity buy-in.
Residential parcels are charged a flat per-unit fee, and non-residential parcels are typically charged
based on the business type and building square footage, which represents their anticipated
wastewater burden. 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 (HHW) Reimbursement—Central San provides a facility where
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 based on projected changes in recycled water
consumption.
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• All Other Sources—This includes the following:
o Permit and Inspection Fees— Fees for sewer permits, plan review, inspections, and related
activities, including environmental compliance fees. The amounts are forecast by the
Development Services Supervisor based on anticipated construction activity for the upcoming
yea r.
o Lease Rental Income—This represents 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.
o Stormwater/Pollution Prevention—These are fees collected from Contra Costa County and
certain cities for performing stormwater inspections as required by Contra Costa 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 performed during the
fiscal year.
o Interest Income—This is based on forecasted cash levels multiplied by estimated interest rates
over the course of the fiscal year.
o Developer Fees—These are 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— 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—This includes annexation fees, other service charges, and miscellaneous fee revenue.
Amounts are collected by various departments depending on the source of revenue. For the
SIF, other revenue includes an allocation from the O&M fund in an amount necessary to
replenish the SIF to the targeted level after projected expenses in the budget year.
o Use of Reserves— Use of, or contribution to, reserves is determined by sub-fund. A
contribution to reserves results from budget year revenues exceeding budget year
expenditures. A draw from reserves results if the reserve is true. Table 14 shows the reserve
status by sub-fund and overall status of the Central San Enterprise Fund.
Table 2 below shows the overall funding sources of Central San and how those funding sources are
applied to each sub-fund.
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Table 2
Allocation of Funds - FY 2019-20 Budget
Fund 01 Fund 02 Fund 03 Fund 04 Total
Sewer Service Charge $69,090,870 $32,219,130 $0 $0 $101,310,000
City of Concord $14,570,000 $11,630,000 $O",$0 $26,200,000
Tax Revenue $0 $14,520,000 $0 $2,982,415 $17,502,415
Capacity Fees $0 $5,750,000 $0 $0 $5,750,000
HHW Reimbursement $968,000 $0 $0 $0 $968,000
Recycled Water $420,000 $0 $0 $0 $420,000
Other Revenue Sources Including: $0 $0 $0 $0 $0
Permit& Inspection Fees $1,870,000 $0 $0 $0 $1,870,000
Lease Rental Income $703,500 $0 $0 $0 $703,500
Stormwater/Pollution Prevention $370,000 $0 $0 $0 $370,000
Interest Income $1,231,000 $674,000 $179,900 $0 $1,803,900
Developer Fees $0 $514,000 $0 $0 $514,000
Pumped Zone Fees $0 $291,000 $0 $0 $291,000
Other $337,000 $0 $846,000 $0 $1,183,000
Total Other Revenue Sources $4,230,500 $1,479,000 $1,025,900 $0 $6,735,400
Subtotal Funding Sources $89,560,370 $65,598,130 $1,025,900 $2,982,415 $159,166,815
Allocation of Funds - FY 2018-19 Budget
Fund 01 Fund 02 Fund 03 Fund 04 Total
E� Self- T"Funding Sources
FY 2018-19 Budget -pital -A R-Tr�
...
Sewer Service Charge $67,073,732 $27,926,268 $0 $0 $95,000,000
City of Concord $14,800,000 $7,150,000 $0 $0 $21,950,000
Tax Revenue $0 $13,300,000 $0 $3,528,591 $16,828,591
Capacity Fees $0 $5,900,000 $0 $0 $5,900,000
HHW Reimbursement $929,000 $0 $0 $0 $929,000
Recycled Water $420,000 $0 $0 $0 $420,000
Other Revenue Sources Including: $0 $0 $0 $0 $0
Permit& Inspection Fees $1,783,000 $0 $0 $0 $1,783,000
Lease Rental Income $627,000 $0 $0 $0 $627,000
Stormwater/Pollution Prevention $360,000 $0 $0 $0 $360,000
Interest Income $600,000 $570,000 $115,750 $82,447 $1,368,197
Developer Fees $0 $443,000 $0 $0 $443,000
Pumped Zone Fees $0 $600,000 $0 $0 $600,000
Other $333,000 $0 $844,500 $0 $1,177,500
Total Other Revenue Sources $3,703,000 $1,613,000 $960,250 $82,447 $6,358,696
Total $86,925,732 $55,889,268 $960,250 $3,611,038 $147,386,287
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Sewer Service Charge
Tables 3 and 4 show the SSC for FY 2019-20 compared to the FY 2018-19 rates for residential and
non-residential customers. These rates were approved by the Board after a public hearing on
April 18, 2019 as part of a four-year rate ordinance. Prior to the rate adoption, two financial planning
workshops were held (in November 2018 and January 2019) to discuss Central San's financial outlook
and to receive preliminary Board direction on key financial planning matters.
Table 3 -Approved Annual SSC-Residential
Customer Type IFY 2015-16 FY 2016-17 IFY 2017-18 FY 2018-19 IFY 2019-20
Single Family Residence $471 $503 $530 $567 $598
Other Residences—Apartments,
Condominiums, Duplexes,Second $463 $487 $513 $549 $566
Living Units, Mobile Homes
Effective Date 07/01/15 07/01/16 07/01/17 07/01/18 7/01/19
Table 4 -Approved Annual SSC-Non-Residential
Customer Type IFY 2018-19 IFY 2019-20
Commercial and Other Non-Residential Customers(per Hundred Cubic Feet)
Strength Category/Former Category Name
Low/Standard Commercial,Churches, Daycares, Preschools, and Universities $5.61 $6.23
Low/Automotive $6.46 $6.23
Low-Medium/Delicatessens,Yogurt Shops, Ice Cream Shops,Coffee Shops, Bars, and
$5.61 $6.72
Mixed-Use(Rate XA)
Low-Medium/Shared meters with 50%or less food service varies Varies $7.65
Medium/Shared meters with 50%or more food service varies Varies $9.59
Medium-High/Hotels and Motels $9.74 $10.70
Medium-High/Restaurants and Supermarkets $10.53 $10.70
Medium-High/Shared meters with Bakeries and High Strength Food Services Varies $10.70
High/Mortuaries $12.93 $14.18
High/Bakeries $14.90 $14.18
High/Breweries and Restaurants with Grinders or Emulsifiers(New for FY 2019-20) N/A $14.92
Minimum Annual Charge $566.00 $566.00
Schools
Schools—Daycare, Preschool, University(per Hundred Cubic Feet) $5.61 $6.23
Schools—Elementary(per Student) $6.98 $7.43
Schools—Intermediate, High School (per Student) $13.71 $14.68
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Commercial and Other Non-Residential Customers
Strength Category
Industrial 77
Wastewater Flow(per Hundred Cubic Feet) $4.14 $4.82
Biochemical Oxygen Demand (per 1,000 Pounds) $1,370.72 $1,275.00
Suspended Solids(per 1,000 Pounds) $639.14 $666.00
Fixed $98.33 $93.69
Special Discharge Permits&Contractual Agreements Determined Determined
Individually Individually
In April 2019, the Board approved consolidation of most of Central San's prior non-residential
customer classes into five classes based on combined strength limits, defined as the sum of
biochemical oxygen demand and total suspended solids. The new customer classes are Low, Medium-
Low, Medium, Medium-High, and High and fairly charge those customers for the proportionate cost of
collecting and treating their wastewater. The change is effective July 1, 2019.
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Below is a diagram of the five customer classes showing the combined strength limits and the
representative businesses that are contained within each category:
Low Medium Medium Medium High
Low High
Up to 350 mg/I 351 to 700 mg/1 7,000 to 1,000 mg/1 1,001 to 1,300 mg/l Over 1,300 mg/1
0• ... Supermarkets Bakeries
...Service) -
Delicatessens
ShopsRestaurants with
Churches Restaurants Concentrators,
Yogurt .-
L Mixed-Use L -A
>5051.Food
.. s Breweries,
�. ..
Hotels with ... Restaurants with
Automotive, Breweries
Mixed-Use
Aviation,Marine Coffee Shops Bakeries
Table 5 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 from 29.4% in FY 2018-19 to 31.8% in
FY 2019-20. All the revenue generated by the FY 2019-20 SSC rate increases will be directed to the CIP
and will be used to fund capital spending in FY 2019-20 and subsequent years.
Table 5 -Allocation of SSC
b6 Budget Actual - Budget % Budget
FY 2017-18 NiOL FY 2017-d FY 2018-19 FY 2019-20
Too&M $75,220,700 84.3% $75,824,221 84.4% $67,073,732 70.6% $69,090,870 68.2% $2,017,138
To Capital $13,967,300 15.7% $14,060,789 15.6% $27,926,268 29.4% $32,219,130 31.8% $4,292,862
Total Collected $89,188,000 100.0% $89,885,010 100.0% $95,000,000 100.0% $101,310,000 100.0% $6,310,000
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Uses of Funds
The uses of funds (expenditures and contributions to reserves)for FY 2019-20 are shown in Figure 3.
Two expenditure categories, O&M and Sewer Construction, account for 97% of the total uses. In
FY 2019-20, a contribution to reserves comprises 1% of the total use of funds. These funds will be
applied to the Sewer Construction Fund (CIP) to help offset the need for related to the increased
capital spending planned for FY 2019-20 and future years.
Figure 3 - Total Funding Uses - FY 2019-20 Budget
Total FY 2019-20 Budgeted Expenditures and Contributions of Reserves:$159,166,815
Self-Insurance
$1,073,700
1% Contribution to Reserves
Debt Service $1,349,926
$2,982,415 \ I 1%
2%
Sewer Construction(CIP) Operations and
$66,176,000 Maintenance
41% $87,584,775
55%
FY 2019-20 Total Funding Uses
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Operations &Maintenance Budget Overview
The total O&M revenue for FY 2019-20 is projected to be $89.6 million, compared to the FY 2018-19
budget amount of$86.9 million, as shown in Table 6.
Table 6 - FY 2019-20 Budgeted 0&M Revenues
FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto %
Account Description Budget Actual Budget Projected Budget Budget Variance
Variance
O&M Revenue
Sewer Service Charge $75,220,700 $75,824,221 $67,073,732 $67,999,000 $69,090,870 $1,091,870 1.6%
City of Concord $15,200,000 $14,973,623 $14,800,000 $15,200,000 $14,570,000 ($230,000) -1.6%
Permit&Inspection Fees $1,724,000 $2,091,062 $1,783,000 $2,087,000 $1,870,000 $87,000 4.9%
Lease Rental Income $612,000 $619,317 $627,000 $686,500 $703,500 $76,500 12.2%
HHW Reimbursement $853,000 $899,723 $929,000 $949,000 $968,000 $39,000 4.2%
Stormwater/Pollution $340,000 $421,022 $360,000 $400,000 $370,000 $10,000 2.8%
Prevention
Interest Income $78,000 $230,042 $600,000 $993,000 $1,231,000 $631,000 105.2%
Recycled Water $335,000 $466,960 $420,000 $420,000 $420,000 $0 0.0%
Other $296,000 $439,015 $333,000 $335,000 $337,000 $4,000 1.2%
Total Revenue $94,658,700 $95,964,985 $86,925,732 $89,069,500 $89,560,370 $2,634,638 3.0%
Revenue increases by$2.6 million, or 3.0%, due to the following:
• While system-wide average SSC rates are increasing by 5.25% effective July 1, 2019, the O&M
allocation of the SSC decreases from 70.6% in FY 2018-19 to 68.2% in FY 2019-20, with the amount
allocated to capital projects increasing from 29.4%to 31.8%.
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 $14.6 million in FY
2019-20, a 1.6% decrease compared to $14.8 million in FY 2018-19. This is due to decreased O&M
spending, offset by a slightly higher anticipated share of flow-based costs attributable to the City of
Concord.
As shown in Table 7, total O&M expenses are projected to be $87.6 million in FY 2019-20, a reduction
of$2.1 million from the $89.7 million budget in FY 2018-19. This figure includes all Central San services
including wastewater collection and treatment, HHW collection, and recycled water production and
distribution. Central San has maintained a relatively flat O&M budget for six years in a row (FY 2014-15
to FY 2019-20). Despite this fiscal discipline, the budget continues to provide funding for strategic
initiatives and key activities. Table 7 and Figure 4 show the FY 2019-20 0&M Budget by expense
category. Significant savings from a transition to CalPERS Health has enabled this reduction in O&M
spending, despite inflationary pressures in other expense categories.
0&M salaries and benefits (categories A and B) comprise 60.3% of the overall O&M Budget.
Contributions toward unfunded liabilities (category C) are another 14.2%. Salary, benefit, and
Unfunded Actuarial Accrued Liability (UAAL) related costs are 74.5% of the 0&M Budget. All other
expenses (category D) comprise 25.5%.
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Table 7 - FY 2019-20 Budgeted O&M Expenditures and Contribution to Reserve
A.Salaries&Wages
Salaries&Wages $34,797,628 $33,847,471 $35,571,037 $35,783,100 $38,060,443 $2,489,406 7.0% 43.5%
B.Benefits
Benefits& $12,655,155 $13,354,020 $12,655,572 $13,128,561 $10,727,641 ($1,927,931) -15.2% 12.2%
Capital Overhead Credit
Salary&Benefits $47,452,783 $47,201,491 $48,226,609 $48,911,661 $48,788,084 $561,475 1.2% 55.7%
(Active Employees)
Benefits(Retirees) $5,946,000 $5,573,753 $5,941,200 $5,745,000 $4,001,000 ($1,940,200) -32.7% 4.6%
C.UAAL
Retirement UAAL/ $11,679,261 $11,347,000 $10,720,478 $11,463,712 $11,186,841 $466,363 4.4% 12.8%
Unfunded Liabilities
Additional UAAL
Contributions $2,500,000 $5,000,000 $2,500,000 $2,500,000 $1,250,000 ($1,250,000) 50.0% 14.3%
Total UAAL/ $14,179,261 $16,347,000 $13,220,478 $13,963,712 $12,436,841 ($783,637) -5.9% 14.2%
Unfunded Liabilities
Total Labor Related Costs $67,578,044 $69,122,244 $67,388,287 $68,620,373 $65,225,925 ($2,162,362) -3.2% 74.5%
D.Other O&M Expenses
Chemicals $1,482,000 $1,025,129 $1,459,000 $1,414,000 $1,620,000 $161,000 11.0% 1.8%
Utilities $4,639,790 $4,349,145 $4,142,550 $4,180,254 $4,209,350 $66,800 1.6% 4.8%
Repair&Maintenance $5,299,754 $4,428,945 $5,414,644 $5,121,404 $5,242,867 ($171,777) -3.2% 6.0%
Hauling&Disposal $1,023,975 $1,032,064 $1,126,475 $1,084,550 $1,186,175 $59,700 5.3% 1.4%
Professional&Legal Fees $807,600 $663,704 $845,300 $731,086 $874,300 $29,000 3.4% 1.0%
Outside Services $3,452,717 $2,324,576 $3,510,822 $3,008,053 $3,639,547 $128,725 3.7% 4.2%
Self-Insurance Fund $585,000 $585,000 $779,500 $779,500 $825,000 $45,500 5.8% 0.9%
Materials&Supplies $2,059,325 $2,103,329 $2,108,126 $2,166,588 $2,152,127 $44,001 2.1% 2.5%
Other Expenses $2,785,382 $1,973,119 $2,945,752 $2,511,987 $2,609,484 ($336,268) -11.4% 3.0%
**Total Other O&M $22,135,543 $18,485,012 $22,332,169 $20,997,422 $22,358,850 $26,681 0.1% 25.5%
Total Expenditures $89,713,587 $87,607,256 $89,720,456 $89,617,795 $87,584,775 ($2,135,681) -2.4% 100%
Figure 4 - FY 2019-20 Budgeted O&M Expenditures
D.Self Insurance Fund,0.9%. D.Materials&Supplies,2.5%
D.Outside Services,4.2% / -- D.Other Expenses,3.0%
D.Professional&Legal Fees,1.0%
D.Hauling&Disposal,1.4%
D.Repair&Maintenance,6.0%
D.Utilities,4.8% A.Salaries&Wages,43.5%
D.Chemicals,1.8%
C.Total UAAL/Unfunded
Liabilities,14.2%
B.Benefits&Cap O/H Credit,
B.Benefits(Retirees),4.6% 12.2%
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Variances in the Operations &Maintenance Budget
O&M costs overall decrease from FY 2018-19 to FY 2019-20 by$2.1 million. Salaries increase by
$2.5 million, which are offset by benefit and retirement cost decreases of$3.9 million. Contributions
towards unfunded liabilities dropped $0.8 million, while other costs were flat from year to year. These
changes are discussed below and illustrated in Figure 5.
Figure 5 - O&M Cost Comparison by Year
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0 N.Www ..mum o..ur.0 111UNN o .oma. Numm UUM
N Y -0 N N (U N N
v v
QJ M v U N v aJ r ai ai
■FY 2017-18 Budget a " > LL fl
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06 = � � N ) = Ln c N w
■FY 2017-18 Actual ^ O N = °J v p 06 J a 06
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+ cc pp N
n1 a1 Q T N 7 fa a/
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o FY 2018-19 Budget Ln 06 m Q f J i _ O 0 O
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■ FY 2018-19 Projected v
a1
m v a
■FY 2019-20 Budget Co o
The lettered expense categories in the chart correspond to the descriptions below.
A. O&M Salaries &Wages
Central San's budgeted salaries are $38.1 million in FY 2019-20, compared to $35.6 million in
FY 2018-19, representing an increase of$2.5 million, or 7.0%. The increase reflects the 3.5% salary
adjustment effective April 2019 (which was higher than the 3% assumed in the FY 2018-19 budget),
an assumed salary adjustment effective April 2020 of 3% (the actual adjustment will be based on
the Bay Area Consumer Price Index change from February 2019 to February 2020), step increases
for newer employees, and a decrease in the vacancy factor from 3.25% assumed in the FY 2018-19
budget to 2%, which is the level historically assumed.
B. Benefits and Capitalized Overhead
Cost-Saving Transition to CalPERS Health-As part of labor negotiations, the Board agreed with
the bargaining units to switch to CalPERS Health plans for active and retired employees, effective
July 1, 2019. Initially, Central San's actuarial services consultant, Bartel Associates, presented
estimated savings to the Board totaling $5.6 million as a result of this action. In the OPEB valuation
provided to the Board in early 2019, that number was updated to $5.8 million. The savings from
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the transition affect the Benefits and Capitalized Overhead expense grouping and the Unfunded
Liabilities expense grouping (discussed below). A$3.9 million reduction in Benefits and Capitalized
Overhead, or 20.8% decrease results from this change and other offsetting cost changes described
below. The cost of benefits in the 0&M budget, which now total $14.7 million in FY 2019-20,
compared to $18.6 million in FY 2018-19. An analysis showing the reconciliation between the Bartel
savings estimate and the budget line items is shown in Table 6 of the Supplemental Financial
Information section of this budget document.
Other changes in benefit costs assumptions are listed below. Given the timing of the budget
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.
• CCCERA—The overall retirement normal cost for FY 2019-20 is essentially unchanged at
$5.3 million in FY 2018-19. The retirement contribution rate is decreasing 1%for legacy
employees and 3.3%for Public Employees' Pension Reform Act employees, offset by higher
pensionable wages.
• Delta Dental—A 3.75% rate increase was assumed during the budget process. Subsequently,
the carrier announced that premiums are decreasing by 7%.
• Long-Term Disability—A 3% rate increase was assumed during the budget process. The actual
rates have not been finalized.
• Employee Assistance Program—A 3% rate increase was assumed for budget purposes.
Subsequently, the carrier announced that premiums will not change for FY 2019-20.
• Workers' Compensation—A 10% rate increase was assumed for budget purposes. The actual
rates have not been finalized. More impactful, however, is the Experience Modification factor
that adjusts the gross rate of the collective pool to the member agency. Central San's
Experience Modification increased from 0.74 to 1.06, a 43.2% increase.
• Life Insurance—A 0% rate change is assumed for budget purposes. The actual rates have not
been finalized as of April 2019.
The Capitalized Administrative Overhead rate, a credit given for capital work to the O&M Budget
for non-work hours and overhead, decreased from 124% in FY 2018-19 to 121%for FY 2019-20.
The Capitalized Administrative Overhead budget is $4.4 million in FY 2019-20, up from $4.0 million
in FY 2018-19, reflective of the increase in the Capital Improvement Budget.
C. Unfunded Liabilities
Central San has agreements with its employees to provide pension and post-employment
healthcare benefits. Central San 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
pension/benefits. A UAAL may occur when those economic/demographic assumptions are not
met, those assumptions are changed, and/or the level of pension/benefits is adjusted.
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Overall contributions towards unfunded liabilities decrease from $13.2 million in FY 2018-19 to
$12.4 million in FY 2019-20, representing a decrease of$0.8 million, or 5.9%.
The pension unfunded liability expense to be paid to CCCERA is $11.2 million in FY 2019-20, which,
compared to the budget of$10.7 million in FY 2018-19, is an increase of$0.5 million, or 4%.
The budget also includes $1.25 million to be paid towards the unfunded liabilities for Pension or
OPEB obligations, to be determined by the Board during the fiscal year. This is a reduction from
the $2.5 million in the current year budget as pension and OPEB funding ratios have improved
significantly in recent years due to multiple factors, including: (1) additional payments above
actuarially required amounts, (2) a change to lower cost health insurance effective July 2019 that
reduces OPEB liabilities, and (3) favorable returns on pension and OPEB assets.
To the extent that budget savings are available with the completion of the FY 2019-20 year, the
Board may choose to direct part of the savings towards additional UAAL funding.
D. All Other O&M Expenses
The remaining O&M non-labor expenses are flat at $22.36 million in FY 2019-20, compared to
$22.33 million in FY 2018-19. Additional information is included in the individual division budgets.
The areas of most significant changes include the following:
• Chemicals—This expense increased by$161,000, or 11%, due to increased pricing of polymer.
• Utilities—This expense increased by $67,000, or 1.6%, due to increased cost for landfill gas.
• Repairs & Maintenance—This expense decreased by$172,000, or 3.2%, due to the Vehicle and
Equipment Shop performing more in-house repairs and a decrease in software renewal
expenses.
• Hauling & Disposal—This expense increased by$60,000, or 5.3%, due to higher HHW disposal
rates and rising diesel prices.
• Professional & Legal Fees—This expense increased by$29,000, or 3.4%, due to a need for
additional legal research and advice in the Office of the General Manager/Office of the
Secretary of the District.
• Outside Services—This expense increased by$129,000, or 3.7%, due to a need for additional
use of outside technical service firms in the Planning and Development Services Division.
• Self-Insurance Expense—This expense increased by $46,000, or 5.8%, reflecting a higher
necessary allocation from O&M to cover anticipated higher estimated loss payments legal
services, and insurance premiums.
• Materials & Supplies—This expense increased by$44,000, or 2.1%, due to small budgetary
increases across many divisions.
• Other Expenses—This expense decreased by $336,000, or 11.4%. No Proposition 218 Notice
expenses or Board election takes place in FY 2019-20, while those costs were budgeted in
FY 2018-19.
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• Technical Training, Conferences, and Meetings-This expense is included in the Other Expenses
category and increased by $23,000, or 6.4%, due to increased technical training for both new
hires and succession planning efforts with existing staff. Table 8 shows a breakdown of the
budget in Technical Training, Conferences, and Meetings.
Table 8 - Technical Training, Conferences, and Meetings
FY 2017-18 FY 2018-19 FY 2019-20 %
Budget Budget Budget Variance Variance
Board of Directors $45,000 $45,000 $40,000 ($5,000) -11%
Administration Department $93,550 $107,900 $119,700 $11,800 11%
Engineering Department $97,375 $100,325 $107,425 $7,100 7%
Operations Department $86,450 $104,600 $113,500 $8,900 9%
Total $322,375 $357,825 $380,625 $22,800 6.4%
Operations &Maintenance Budget by Operating Departments
Table 9 and Figure 6 provide a summary of the operating budgets by department. Further details
are included in the Operating Departments Section.
Table 9 - O&M Budget by Dej2artment
Account Description FY 2017-18 ]_ FY 2017-18 FY 2018-19 FY 2018-19 _F FY 2019-20 Budget to Budget %
Budget Actual Budget Projected Budget Variance Variance
Administration
Communication Services and $1,979,369 $1,774,303 $2,094,427 $1,925,092 $1,980,908 ($113,519) -5%
Intergovernmental Relations
Finance $2,570,983 $2,097,841 $2,442,604 $2,036,266 $2,409,374 ($33,230) -1%
Human Resources $12,579,787 $14,754,657 $12,609,437 $12,591,970 $8,251,199 ($4,358,238) -35%
Information Technology $3,938,582 $3,526,457 $4,137,334 $3,970,913 $4,093,590 ($43,744) -1%
Purchasing and Materials $1,958,932 $1,634,026 $2,051,286 $1,880,258 $2,123,488 $72,202 4%
Services
Risk Management $1,604,720 $1,217,984 $1,823,308 $1,727,014 $1,867,875 $44,567 2%
Office of the General Manager/
Office of the Secretary of the $2,629,493 $2,840,218 $2,579,261 $3,323,021 $2,755,994 $176,733 7%
District
Total $27,828,993 $27,845,486 $27,737,657 $27,454,534 $23,482,428 ($4,255,229) -15%
Engineering and Technical Services Department
Capital Projects $766,422 $437,006 $835,854 $544,128 $455,841 ($380,013) -45%
Environmental and Regulatory $8,451,520 $7,999,359 $8,397,399 $8,270,530 $8,628,203 $230,804 3%
Compliance
Planning and Development $7,816,395 $8,036,137 $7,800,153 $7,455,700 $7,779,898 ($20,255) 0%
Services
Total $15,899,140 $16,472,501 $17,033,406 $16,270,358 $16,863,942 ($169,464) -1%
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Account Description FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budget to Budget %
Budget Budget Projected Budget Variance Variance
Operations
Collection System Operations $14,156,213 $13,250,762 $13,960,060 $14,331,708 $14,750,139 $790,079 6%
Plant Maintenance $14,138,658 $13,532,776 $14,366,463 $14,385,929 $14,610,349 $243,886 2%
Plant Operations $14,886,976 $14,504,548 $14,222,651 $15,106,596 $15,520,408 $1,297,757 9%
Safety Program $916,895 $717,669 $847,425 $746,437 $749,161 ($98,264) -12%
Recycled Water Program $1,318,642 $1,023,758 $1,552,794 $1,322,233 $1,608,348 $55,554 4%
Total $46,082,785 $43,029,512 $44,949,393 $45,892,903 $47,238,405 $2,289,012 5%
Total All Departments $89,810,918 $87,347,500 $89,720,456 $89,617,795 $87,584,775 ($2,135,681) -2%
Figure 6 - FY 2019-20 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 Plant Operations,
Administration Technical System Maintenance, Recycled Water
Services Operations Safety Program
Department
■FY 2017-18 Actual $27,845,486 $16,472,501 $13,250,762 $28,754,993 $1,023,758
o FY 2018-19 Budget $27,737,657 $17,033,406 $13,960,060 $29,436,539 $1,552,794
Q FY 2019-20 Budget $23,482,428 $16,863,942 $14,750,139 $30,879,918 $1,608,348
The substantial reduction in Administration costs is primarily related to the $4.3 million reduction in
retiree benefits, UAAL payments, and additional UAAL payment that are budgeted in the
Human Resources division.
Historical Variances in Operations &Maintenance Spending
Figure 7 below shows historic O&M budgeted and actual amounts, and actual spending as a
percentage of budget. There have been variances averaging 2.9% (spending was 97.1%of budget) over
the last five years (with variances averaging 3.3% since FY 2004-05). In the development of the
FY 2019-20 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 2018-19 projected spending.
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Figure 7 - Historic O&M Budget versus Actual Spending in Millions Multi-Year Trend
$100 100%
80
95%
60 90%
50 85%
30 80%
20 110 75
06$0 - - 70%
Oh 00 01 O� 00 do ly yL y3 y� tih ti0 tiA y4' ea
Off` Ob OHO 01 O� Olc ti0 1ti yl ti� tiV tih tiV tiA e&(
LO LO LO l0 10 LO ti0 LO l0 LO ti0 LO l0 LO Cpl
,LO
F,
NEE BUDGET M� ACTUAL -Achievement%
Staffing,Salaries,and Benefits (Costs included in both O&M and Sewer Construction)
Total labor, benefit, and UAAL related costs decreased $1.1 million, or 1.5%, from $75.7 million in
FY 2018-19 to $74.6 million in FY 2019-20.
Total salaries and benefits for active employees are budgeted at $58.2 million in FY 2019-20, including
both the O&M fund and the Sewer Construction Fund, compared to $56.6 million total salaries and
benefits in FY 2018-19, a $1.6 million increase. Benefits for retirees are projected to be $4.0 million in
FY 2019-20, compared to $5.9 million in FY 2018-19, due to the transition to CaIPERS Health. Costs of
Unfunded Liabilities for pension and OPEB costs are $12.4 million, down from $13.2 million in
FY 2018-19.
Major factors affecting overall salaries and benefits include the following:
+ Cost of living adjustment of 3.5%, a component of the overall assumed salary increases of 5%
+ Reduction in assumed vacancy factor from 3.25%to 2%
+ Additional overtime of$0.3 million, an increase of 21%
- Savings from transition to CaIPERS Health benefit plans effective July 1, 2019
The following tables show various levels of detail regarding labor costs. Table 10 summarizes all labor-
related costs across two sub-funds. Additional tables in the Supplemental Financial Information
section at the end of this budget document provide additional detail about salary and benefit costs.
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Table 10 — Total Labor Costs Summar
� OperationsFY 2019-20 Budget
Maintenance Construction
Active Employees
Budgeted Full-Time Employee Positions(Estimated Allocation)* 264.9 25.1 290.0
Budgeted Salaries&Wages $38,060,443 $3,601,298 $41,661,741
Budgeted Benefits $15,176,010 $1,353,379 $16,529,389
Capitalized Administrative Overhead** ($4,448,369) $4,448,369 $0
Benefits After Capitalized Administrative Overhead $10,727,641 $5,801,748 $16,529,389
Total Costs Active Employees $48,788,084 $9,403,046 $58,191,130
Retiree Costs and Unfunded Liabilities
Retiree Benefit Costs $4,001,000 $0 $4,001,000
UAAL/Unfunded Liabilities $12,436,841 $0 $12,436,841
Total Retiree Costs and Unfunded Liabilities $16,437,841 $0 $16,437,841
Total Labor Related Costs $65,225,925 $9,403,046 $74,628,971
* Estimated allocation of Full-Time Employees between Sewer Construction and 0&M
**Consists of indirect costs associated with non-productive hours and Administrative Overhead
FY 2018-19 Budget Operations& Sewer Total
� Maintenance Construction
Active Employee Costs
Budgeted Full-Time Employee Positions(Estimated Allocation)* 266.9 23.1 290.0
Budgeted Salaries&Wages $35,571,037 $3,085,056 $38,656,093
Budgeted Benefits $16,635,295 $1,294,263 $17,929,558
Capitalized Administrative Overhead** ($3,979,723) $3,979,723 $0
Benefits After Capitalized Administrative Overhead $12,655,572 $5,273,986 $17,929,558
Total Active Employee Costs $48,226,609 $8,359,042 $56,585,651
Retiree and Unfunded Liabilities Costs
Retiree Benefits $5,941,200 $0 $5,941,200
UAAL/Unfunded Liabilities $13,220,47 $0 $13,220,478
Total Retiree and Unfunded Liabilities Costs $19,161,678 $0 $19,161,678
Total Labor-Related Costs $67,388,287 $8,359,042 $75,747,329
* Estimated allocation of Full-Time Employees between Sewer Construction and O&M.
**Consists of indirect costs associated with non-productive hours and Administrative Overhead.
Budgeted Full Time Equivalents
Table 11 shows full time equivalent employee totals for time periods indicated. The Year-End Actual
figures represent actual staffing as of June 30, 2018. In addition to the 291 budgeted positions, the
General Manager has the ability to add five 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 costs associated with these positions are funded through vacancy savings.
Table 12 shows the positions by bargaining unit and division.
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Table 11 - Budgeted Full Time Equivalents
BudgetFY 2017-18 FY 2018-19 FY 2019-20
Year-End Actual Budget
Regular Employees 289.0 290.0 291.0
Limited Duration Employees
Summer Students 30.0 31.0 29.0
Interns 9.5 9.0 10.0
Table 12 - Full Time Equivalent Positions by Bar ainin Unit and Division
OperationsAdministration Engineering
Local One 18.0 40.0 108.0 166.0
Management
27'0 48.0 32.0 107.0
Support/Confidential Group
Management 4.0 4.0 3.0 11.0
Unrepresented 4.0 1.0 1.0 7.0
Total by Division 53.0 93.0 144.0 291.0
Staffing Changes
During 2015, a staffing and organizational studyill 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 2019-20 Budget includes $200,000 in gross
wages and $106,000 for the benefit-related costs of implementing these potential changes.
Overall, staffing is at 291 positions, reflective of the 2015 Organization and Staffing Plan
recommendation, which recommended an additional four positions from the then 287 budgeted
positions. In recent years, budgeted staffing of 290 did not include the fourth position, an Internal
Auditor. The position is now proposed in the budgeted staffing as a Internal Auditor, which is currently
funded (and continues in the FY 2019-20 budget) as a temporary position. Apart from the inclusion of
the one Internal Auditor position, reallocations of staffing between divisions and position changes
within divisions are summarized below:
• Contracts Analyst (Purchasing) to Contracts Specialist (Capital Projects)
• Two Assistant Engineers (Capital Projects) to one Engineering Assistant 1/11 (Capital Projects) and
one Utility Systems Engineer (Capital Projects)
• Two Control Systems Engineers (Plant Operations) to Utility Systems Engineers (Plant Operations)
Capital Improvement Budget
Sewer Construction Fund revenues are projected to increase by$9.7 million, from $55.9 million in
FY 2018-19 to $65.6 million in FY 2019-20. This increase is to cover an extensive CIP and will be
generated primarily through an increase in SSC of$4.3 million, resulting from additional revenue
Report is available here: http://centralsan.org/documents/Organization_and_Staffing_Plan.pdf.
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available from the 5.25%system average rate increase effective July 1, 2019 and an expected
City of Concord reimbursement of$11.6 million due to higher flows and increased cost-based
reimbursement. Budgeted capital expenditures for FY 2019-20 are $66.1 million, a $20.8 million
increase over the FY 2018-19 budget of$45.3 million. The $66.1 million does not include the
anticipated carryforward from FY 2018-19, which will be communicated to the Board after the close of
the current fiscal year. The $20.8 million increase, or 46%, in budgeted spending is a significant step
toward the increased capital spending that will be taking place for the next several years as shown in
the Ten-Year CIP presented later in this document.
Central San will draw down approximately$0.6 million from capital reserves during FY 2019-20 with
expenditures exceeding revenues 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. Prior years' contributions to the Sewer Construction Reserve allow for
smoothing of rate requirements to accommodate the significant ramp-up of expenditures that is
projected to occur during the next couple of years.
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Table 13 below is a summary of the projected FY 2019-20 Sewer Construction Fund revenues and
expenditures. Further details are included in the Capital Improvement Program section.
Table 13 - Sewer Construction Fund Revenues and Expenditures
FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 F FY 2019-20 Budget-to-Budget %
Budget Actual Budget Projected Budget" Variance Variance
Revenue
Capacity Fees $5,900,000 $7,937,754 $5,900,000 $5,750,000 $5,750,000 ($150,000) -3%
Pumped Zone Fees $513,000 $1,301,061 $600,000 $600,000 $291,000 ($309,000) -52%
Interest Income $386,000 $777,226 $570,000 $570,000 $674,000 $104,000 18%
Ad Valorem Taxes $12,100,000 $13,918,715 $13,300,000 $13,300,000 $14,520,000 $1,220,000 9%
Sewer Service Charge $13,967,300 $14,060,789 $27,926,268 $28,311,000 $32,219,130 $4,292,862 15%
Reimbursements
City of Concord $6,000,000 $6,364,725 $7,150,000 $7,150,000 $11,630,000 $4,480,000 63%
Recycled Water Sales $38,500 $0 $0 $0 $0 $0 0%
Developer Fees and Charges $423,000 $519,072 $443,000 $443,000 $514,000 $71,000 16%
Total Revenue $39,327,800 $44,879,342 $55,889,268 $56,124,000 $65,598,130 $9,708,862 17%
Expenditures
Treatment Plant Program $18,045,000 $15,681,067 $16,865,000 $18,300,000 $28,631,000 $11,766,000 70%
Collection System Program $18,492,000 $20,291,192 $19,347,000 $19,500,000 $27,129,000 $7,782,000 40%
General Improvements Program $4,277,000 $2,222,593 $4,750,000 $3,900,000 $4,264,000 ($486,000) -10%
Recycled Water Program $460,000 $1,309,754 $2,857,000 $2,300,000 $4,152,000 $1,295,000 45%
Contingency $1,500,000 $0 $1,500,000 $0 $2,000,000 $500,000 33%
Total Expenditures $42,774,000 $39,504,606 $45,319,000 $44,000,000 $66,176,000 $20,857,000 46%
Carryforward $3,700,000 $6,968,827
Total Expenditure Authority $46,474,000 $52,287,827
Sewer Construction Funds Available
Projected Revenue $56,124,000 $65,598,130
Projected Expenditures*** $44,000,000 $66,176,000
Reserves Contribution/(Draw) $12,124,000 ($577,870)
* Projection as of April 2019.
**The FY 2019-20 budget amount does not include any carryforward from past fiscal years;the Board will be notified of any
carryforward amount after the close of the current fiscal year.
***Reserve calculation assumes difference between FY 2018-19 budget and projected spending will be spent in
FY 2019-20.
Impact of Capital Improvement Plan on Ongoing Operations &Maintenance Budget
Central San's Capital Improvement Budget and the extent to which FY 2019-20 nonrecurring capital
investments will affect the proposed or future years' operating budget are described later in this
document. In general, given the nature and composition of the FY 2019-20 Capital Improvement
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.
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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 were fully funded as of FY 2017-18 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 SIF 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 SIF.
Table 14 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 on
June 30, 2019 and 2020. The FY 2019-20 revenue requirement funds a projected $1.3 million increase
in the reserve balances. The increase in the O&M reserve is related to the projection in the financial
plan for a FY 2020-21 O&M spending level of$92.1 million. The slight drawn down in Sewer
Construction is related to the overall increase in Capital Improvement Budget spending while rate
increases lag the spending increase.
The amounts are subject to change based on actual financial results for the current and next fiscal
years. The Supplemental Financial Information section of this budget document contains a table
showing changes in net position and fund equity.
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Table 14 - Reserve Projections
11111111 1 Sewer Self-insurance
O&M Fund Construction Fund Totals
Fund (Capital)
Projected Balance as of June 30,2019 $36,924,515 $56,148,243 $6,959,875 $100,032,633
Projected Balance as of June 30,2020 $38,900,110 $55,570,373 $6,912,075 $101,382,558
Change Year Over Year $1,975,595 ($577,870) ($47,800) $1,349,925
Reference: Table 7 Table 13 Self Insurance See Figure 3
Table 1
Percentage Change Year Over Year 5.4% -1.0% -0.7% 1.3%
Explanation Ending balance Funds were set
at 6/30/19 is aside in
above policy Recent years
level due to prior years to be
projected 0&M used toward the
savings in funding of
FY 2018-19 future year's
Capital Budgets
Comparison to Policy Target-Start of Budget Year
Policy Target 5/12 of 50%of following 3 times annual
following year's year's non-debt deductible of
0&M Budget funded $500,000 plus
Capital Budget $5 million
Reserve Policy Target end of June 30,2019 $36,493,656 $33,088,000 $6,500,000 $76,081,656
Projected Balance Minus Reserve Policy $430,859 $23,060,243 $459,875 $23,950,977
Target at June 30,2019
Comparison to Policy Target-End of Budget Year
Reserve Policy Target end of June 30,2020 $38,371,110 $32,048,551 $6,500,000 $76,919,661
Projected Balance Minus Reserve Policy
$529,000 $23,521,822 $412,075 $24,462,897
Target at June 30,2020
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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Debt Service
Current debt service expenditures include outstanding payments on 2018 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 2020-21.
Figure 8 - Debt Service Payment Schedule
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
FY 2018- FY 2019- FY 2020- FY 2021- FY 2022- FY 2023- FY 2024- FY 2025- FY 2026- FY 2027- FY 2028- FY 2029-
19 20 21 22 23 24 25 26 27 28 29 30
V Interest G Principal
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Page 102 of 310
Long-Term Spending Trend
Figure 9 shows a long-term trend line of past O&M expenditures, while Figure 10 shows a
long-term trend line of past capital expenditures. The O&M Budget has been held essentially
flat since FY 2014-15, for a total of six years. Capital spending has been ramping up significantly
since FY 2016-17, with spending projected to average $86 million per year over the next
decade (in 2019 dollars).
Figure 9 - Long-Term O&M Spending Trend
$100,000,000
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000 200077 denn=
$20,000,000
$10,000,000
� Ln lD I- 00 0) O -1 N M V Ln lD I- 00 (nO c-I N M V Ln lD I- 00 0) O
T T T T T 01 0 0 0 0 0 0 0 0 0 0 c-I c-I c-i r i c-i r i c-i r i c-i N
m �t Lh to n W 6 O -1 N M �t Lh to n W Om O i\i N -m i _Ln- l\D n 00 -m-
1-4
Ol Ol Ol Ol Ol Ol Ol O O O O O O O O O O ci c-I c-I c-I c-I c-I c-I c-I c-I c-I
Ol Ol Ol -1 -1 -1 -1 O O O O O O O O O O O O O O O O O O O O
cc-I c-I c-I c-I c-I c-I N N N N N N N N N N N N N N N N N N N N
} } } } } } } } } } } } } } } } } } } } } } } } } } }
LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL
Budget Actual
Figure 10 - Infrastructure Investments Over Ten Years: $306,200,000
$50.M
$45.M
2.3 M
$40.M 3.9 M
$35.M —
$30.M —
19.5 M
$25.M 2.SM 2.M 20.3M
20.8 M
$20.M
2.7 M
$15.M 14.5 M
8.8 M 12.3
$10.M
15.7 M
$5.M 0.3M 12.2M
8.9 M
$O.M
FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
Projected
YTP MCS OGI URW
RW–Recycled Water/GI–General Improvements/CS–Collection System/TP–Treatment Plant
57
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Page Intentionally Blank
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Operating Departments
On a day-to-day basis, the following three Operating Departments that make up Central San carry out
the mission of protecting public health and the environment:
• Administration
• Engineering and Technical Services
• Operations
The departments work together to provide both exceptional internal and external customer service in
the operation of Central San's 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 the achievement of the strategic goals and
objectives.
Each department director worked closely with the division managers to create a prudent and
cost-effective budget, utilizing efficiency and effectiveness to execute the Strategic Plan
initiatives and targets while keeping costs at a minimum.
The following sections describe the responsibilities of each department and division, their
Strategic Plan accomplishments in FY 2018-19, Strategic Plan targets and performance in key metrics
for FYs 2017-18 and 2018-19, Strategic Plan targets for FY 2019-20, and operating budget needs.
The total operating budget for FY 2019-20 is $87.6 million, a $2.1 million or 2.3% decrease over the
$89.7 million budget for FY 2018-19.
F , '
9
_ Rr_
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Administration Department
The key to moving water is not simply in the pipes and pumps, but also in the people who keep the
business running. The Administration Department's primary function is to provide services that
support the efficient operation of Central San, including the General Manager and his administrative
support; financial management; human resources; purchasing and materials services; 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 6111114
the following:
• Communication Services and Intergovernmental
Relations s
• Finance
• Human Resources
• Information Technology
• Purchasing and Materials Services
• Risk Management
• Office of the General Manager/
Office of the Secretary of the District _
2
HEA
L +
V,
I I I
PoppR
er -
s
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Communication Services and Intergovernmental Relations
OVERVIEW
This division facilitates all communication with employees, customers, stakeholders, local agencies,
legislators, and elected officials, which encompasses government relations, advocacy, community
outreach, media relations, emergency communications, publications, events, and student educational
programs. In addition, it oversees a contracted, full-service reprographics services center which is
utilized by all of Central San.
FY 2018-19 Strategic Accomplishments
EM= Provide exceptional customer service
Wo • Completed the fourth session of Central San Academy, a program which educates
customers on Central San's mission and how it is fulfilled.
• Created "Tenant Tips" outreach material,which will be utilized statewide in apartment
and tenant agreements, reducing impacts to sewer systems.
• Replaced Central San's external website to increase ease of use, update information, and
ensure compliance with accessibility standards.
• Developed an updated Proposition 218 Notice to customers that provides easy-to-
understand language about potential rate increases using maps,graphics, and photos to
highlight the work of Central San, launching a new industry standard.
• Initiated a new, award-winning kindergarten to second grade education program.
• Performed research to assess customer awareness, satisfaction, desire to learn more
about Central San, and methods of best receiving information.
GOAL Six Embrace technology, innovation,and environmental sustainability
• Awarded the 2018 California Water Environment Association Award for Community
Engagement and Outreach Best Use of Social Media.
• Awarded the California Association of Public Information Officials Award of Distinction
for Excellence in Graphic Design, Photography, and Visualization.
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FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19
Goal Metric Target* Performance FY 2019-20 Performance
Target* as of •
® Students Served by
Educational >2,200 3,443 ��� >4,000 1,210 ie;
Programs
>150
J
Participants in Participants on 262 r
Plant/ Tours
® Treatment
HHWCF Tours and >400 >500 1,122
Central San Participants at . r
Presentations Speakers Bureau 567 i r
Presentations
Participants in
Citizens Academy, :Or >30 43 JOr
• Central San >30 39 i r i r
Academy
* FY 2016-17 metric targets were set by the FY 2016-18 Strategic Plan. FY 2017-18 and 2018-19 metric targets were set by
the FY 2018-20 Strategic Plan.
**Performance as of Q3 (March 31,2019) is included in the tables of the Operating Department pages of this book. Final
FY 2018-19 performance will be added to the Strategic Performance section toward the end of this book when the data
becomes available after June 30.
FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
• . i
Continue to expand outreach with residential and commercial customers, legislators,elected
officials,and sister agencies to grow and maintain relationships and advocate for the interests of
Central San's customers.
• Invest in programs to inform the public and students of the need to fund necessary infrastructure
Build External improvements to maintain Central San's level of service and protect public health and the
Customer environment through an updated Proposition 218 Notice,the Central San Academy,student
Relationships and education programs,tours, and more.
Awareness Perform outreach to customers on projects that impact their communities through construction,
pumping station improvements, and sister agency interconnections promoting the use of recycled
water.
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Budget Overview by Expense Cate or
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& $676,862 $628,802 $732,452 $724,900 $747,972 $23,072 3% $15,520 2%
Wages
Employee $471,302 $418,161 $216,536 $222,700 $192,229 ($30,471) -14% ($24,307) -11%
Benefits
Unfunded $0 $0 $226,934 $226,026 $220,602 ($5,424) -2% ($6,332) -3%
Liabilities*
Repairs& $1,000 $0 $1,000 $1,000 $1,000 $0 0% $0 0/
°
Maintenance
Professional& $2,600 ($2,363) $3,500 $2,500 $3,500 $1,000 40% °
Legal Services $0 0/
Outside $399,000 $360,509 $391,000 $267,500 $306,000 $38,500 14% ($85,000) -22%
Services
Materials& $61,675 $43,726 $61,675 $61,636 $61,675 $39 0% $0 0/
°
Supplies
Other $366,930 $325,469 $461,330 $418,830 $447,930 $29,100 7% ($13,400) -3%
Expenses
Total $1,979,369 $1,774,303 $2,094,427 $1,925,092 $1,980,908 $55,816 3% ($113,519) -5%
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Re uirements
IFY 2017-18
Regular Status . .yees Year-End IFY 2018-19 IFY 2i i
Actual
Communication Services and 1.0 1.0 1.0
Intergovernmental Relations Manager
Community Affairs Representative 2.0 3.0 3.0
Graphics Technician 1.0 1.0 1.0
Media Production Technician 1.0 1.0 1.0
Public Information and Production Assistant 1.0 0.0 0.0
Total 6.0 6.0 6.0
IFY 2017-18
d Duration Employeesi
Actual
Graphic Design Summer Student 1.0 1.0 1.0
Intern 0.0 1.0 1.0
Total 1.0 2.0 2.0
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Significant Budget Modifications
The Communication Services and Intergovernmental Relations Division Operating Budget for
FY 2019-20 is $2.0 million, a $0.1 million or 5% decrease over the $2.1 million budget in FY 2018-19.
Salaries & Wages include the agency-wide cost-of-living adjustment and increases due to step
advancements. The decrease in Benefits is due to lower premiums for the new medical plans. Outside
Services decreased due to lower Reprographic Service Center provider expense. Other Expenses
decreased as a Proposition 218 Notice to customers is not expected to be needed in FY 2019-20.
Communication Services and Intergovernmental Relations 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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Finance
OVERVIEW
This division is responsible for maintaining internal controls over financial reporting of all Central San
funds and accounts. It 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.
It is also responsible for the preparation of the budget and coordinates this process with all other
departments at Central San. Monthly financial statements are prepared, reviewed, and analyzed by
this division and submitted to the Board for review. Central San is subject to an annual external audit,
which is administered and coordinated by this division. Subsequent to this audit, this division
assembles the Comprehensive Annual Financial Report, which is submitted to the Board and the
Government Finance Officers Association (GFOA).
FY 2018-19 Strategic Accomplishments
Be a fiscally responsible and effective wastewater utility
• Refinanced outstanding debt to save $8.2 million in interest costs over the next
decade.
• Fully funded the Other Post-Employment Benefits (OPEB) actuarially determined
contribution and paid an additional $2.5 million toward the unfunded liability.
• Developed the FY 2019-20 Budget with a sixth year of essentially flat Operations&
Maintenance budget (FY 2014-15 to FY 2019-20).
• Achieved 18 consecutive years of receiving the GFOA Certificate of Achievement for
Excellence in Financial Reporting.
• Received the GFOA Distinguished Budget Presentation Award for the FY 2018-19
Budget.
• Continued development of an internal audit program and implemented findings from
the initial internal audits done in FY 2017-18.
• Received an unqualified audit opinion and zero reported material weaknesses or
significant deficiencies in internal controls as part of the annual financial audit.
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FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
IFY 2017-18 FY 2017-18 IFY 2018-19/ FY 2018-19
Goal Metric Target Performance IFY • • Performance
Target as of •
SSC Less
Than Average
of Bay Area
Sewer Service Agencies
Service Charge(SSC)
OAffordability Less Than Target Met ��; SSC Plus Ad Target Met ��;
Maintained Average of Bay Valorem Tax
Area Agencies Less Than
Average of
Bay Area
Agencies
AAA from AAA from AAA from
i AAA from Standard , r S&P S&P on New
, r
Credit Ratings Standard and Or
Poor's and Debt and j ;
Poor's(S&P) (S&P) Aa1 from Aa1 from
Moody's Moody's
Debt Service , r , r
U Coverage Ratio
>2.Ox 8.9x ja; >2.Ox >15.Ox j�;
Actual Reserves as
a Percentage of 100.0% 100.0% ;Or 100.0% 100.0% ;gr
U' Target
Reported Material
Weaknesses or
® Significant N/A
Deficiencies in Not a Metric in the Zero(0) Zero(0) ���
�J Internal Controls as FY 2016-18 Strategic Plan
Part of Annual
Financial Audit
Operating
' Expenditures as a , r , r
>90.0% 94.6% j�; >95. 0% >99.0% j�;
tC7� Percentage of
Operating Budget
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FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective for FY 2019-20
9=11111
mg
Maintain a Strong Achieve awards for budget and financial reporting from GFOA.
Reputation in the
Community
Continue to support effort to manage unfunded liabilities by reporting on and offering alternatives for
Conduct Long-
favorable variances towards these obligations or other priorities.
Range Financial
Planning Implement improvements to interim financial reports to address areas of interest to the Board.
Begin implementation of new enterprise resource planning(ERP)software,which will re-engineer
business processes in key divisions District wide,resulting in cost reduction through efficiencies.
Manage Costs
Budget Overview by Expense Cate ory
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
I Variance Variance I
Salaries& $1,222,311 $1,095,542 $1,211,950 $941,700 $1,232,280 $290,580 31% $20,330 2%
Wages
Employee $933,092 $798,295 $461,426 $447,535 $373,414 ($74,121) -17% ($88,012) -19%
Benefits
Unfunded $0 $0 $343,153 $341,781 $311,815 ($29,966) -9% ($31,338) -9%
Liabilities*
Repairs& $1,000 $0 $1,000 $100 $1,000 $900 900% $0 0/
°
Maintenance
Professional& $225,750 $47,876 $243,000 $138,500 $250,500 $112,000 81% $7,500 3%
Legal Services
Outside $145,900 $136,980 $148,800 $148,600 $197,200 $48,600 33% $48,400 33%
Services
Materials& $9,800 $9,048 $10,000 $13,000 $10,000 ($3,000) -23% °
Supplies $0 0/
Other $33,130 $10,100 $23,275 $5,050 $33,165 $28,115 557% $9,890 42%
Expenses
Total $2,570,983 $2,097,841 $2,442,604 $2,036,266 $2,409,374 $373,108 18% 1 ($33,230) -1%
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
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Personnel Requirements
FY 2017-18
Regular Status Employees Year-End FY 2018-19 FY 2019-20
Actual
Accountant 3.0 2.0 2.0
Accounting Technician III 3.0 3.0 3.0
Finance Administrator 2.0 2.0 2.0
Finance Manager 1.0 1.0 1.0
Total 9.0 8.0 8.0
Significant Budget Modifications
The Finance Division Operating Budget for FY 2019-20 is $2.4 million, which remained flat compared to
the $2.4 million budget in FY 2018-19. Salaries & Wages include the agency-wide cost-of-living
adjustment, increases due to step advancements, and additional funding for the Temporary Senior
Internal Auditor position, offset by reductions due to staff turnover and lower costs for new
employees. The decrease in Benefits is due to lower premiums for the new medical plans. Outside
Services increased due to temporary staffing needed for the financial system conversion related to the
replacement of the ERP software. All others increased due to higher property tax administration fees
at Contra Costa County.
Finance supports Central San by providing transparent financial information and works, in conjunction
with the Engineering and Technical Services 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 and that rate levels are no more
than necessary to meet essential needs, provide for long-term reliability, and ensure appropriate levels
of customer service. Finance will be working with other divisions to implement a new financial system,
as part of the ERP System Replacement Project.
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Human Resources
OVERVIEW
This division manages employee and labor relations; recruitment, testing, and selection to enhance
Central San's workforce; classification and compensation; benefits administration; agency-wide
training; organizational development; and all payroll functions. While its budget is under the umbrella
of the Administration Department, the Human Resources Division is overseen under the Deputy
General Manager/Director of Operations in the Operations Department.
FY 2018-19 Strategic Accomplishments
• • Strive to meet regulatory requirements
• Reviewed and updated Deferred Compensation and Cafeteria Plan
(Section 125 documents).
• Conducted harassment and ethics training for all employees.
Be a fiscally responsible and effective wastewater utility
�( }, • Transitioned all employees and retirees to CalPERS health benefit plans, which is
projected to save an estimated $5.8 million per year in healthcare costs.
• Implemented new Health Reimbursement Arrangement(HRA)for Tier III employees to
offset some of their future healthcare costs without additional OPEB liability.
• Conducted audit of payroll functions
■ • ■ Develop and retain a highly trained and innovative workforce
• Completed labor negotiations after 18 months of discussions.
• Enhanced the performance appraisal process and planned implementation.
• Identified potential vendors for the implementation of an agency-wide learning
management system to centralize all training tracking.
• Hosted HR @ Your Service training sessions for employees.
• Held the second session of the Supervisory Academy.
• Evolved the third session of the Management Academy to allow participants from sister
public agencies.
• Paired mentors and mentees in the second year of the Mentorship Program.
• Added new component to Commuter Benefit Program,giving participating employees
the ability to get up to$265 per month tax free.
• Implemented Catastrophic Leave Program, allowing employees to donate accrued leave
hours to a bank for other employees to use so they may continue to stay in paid status.
• Established Labor Management Committee with Local One and resumed Committee
meetings with the Management Support/Confidential Group.
• Began transition to new occupational healthcare provider, Kaiser Permanente.
• Implemented background checks for all new employees.
GOAL SIX Embrace technology, innovation,and environmental sustainability
• Eliminated paper timesheets through the implementation of an electronic timekeeping
system, lntelliTime°.
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FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
2018-19
Goal Metric Target Performance IFY • • Performance
Target as of •
100.0%
of Staff Due 100.0%
Employees >_50.0% for Training of New
(New . r Employees . r
Attending Customer of All i r 100.0% 1 r
Employees Within
Service Training District Staff
Within 6 Months of
6 Months of Employment
Employment)
Average Time
to Fill Vacancy . r . r
<60 days 68 days ��; <60 days 59 days ��;
rAkN (From Request to
Hire)
Turnover Rate at or
4*D, Below Industry <8.8% 4.8% jO; <_4.8% 4.7% j�;
Average
Average Annual 7.5 Hours
..
Training Hours Per Full-Time 27.4 .Hr 15 13.9 .�r
Equivalent
(External and Hours/FTE Hours/FTE Hours/FTE
Internal Training) Employee
(FTE)
Actual Versus
4*D, Budgeted Usage of >80.0% 60.3% ;�; >80.0% 71.0% j�;
Training Dollars
Participation in N/A Increase by
[*1r
Annual Wellness Not a Metric in the 10.0%each -15.0% 1 r
Expo FY 2016-18 Strategic Plan Year
Internal Promotions N/A
4*D, (Excludes Entry- Not a Metric in the >_25.0% 28.0% j r
Level Positions) FY 2016-18 Strategic Plan
MAkUFormal Grievances N/A OrrNot a metric in the Zero(0) 2 j Filed FY 2016-18 Strategic Plan
Performance
9�D Evaluations 100.0% 49.0% ,Or 100.0% 90.0% �Or
r��
Completed on Time
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FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
u Implement the new ERP software for increased automation, ease of report production, and
improved record keeping.
Manage Costs Complete the transition to CAPERS Health benefits for all employees and retirees.
Continue the Mentorship Program.
Ensure Adequate
Staffing and Launch third Supervisory Academy in 2020.
Training to Meet
Current and
Future Purchase and implement a learning management system.
Operational Levels
OWN. Investigate additional cost-effective benefits to offer to employees.
Arra
Enhance Complete employee engagement survey and implement recommendations.
Relationship with
Employees and Continue to work collaboratively with bargaining units to resolve workplace issues in their early
Bargaining Units stages and prevent grievances.
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Budget Overview by Expense Category
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
N Variance Variance
Salaries&Wages $1,049,323 $1,001,418 $1,263,408 $1,088,000 $1,321,355 $233,355 21% $57,947 5%
Employee $2,553,199 $2,631,323 $348,110 $597,457 $672,895 $75,438 13% $324,785 93%
Benefits
Retiree Benefits $5,946,000 $5,761,741 $6,081,435 $5,880,336 $4,126,434 ($1,753,902) -30% ($1,955,001) -32%
Unfunded $0 $0 $1,852,454 $2,047,847 $272,185 ($1,775,662) -87% ($1,580,269) -85%
Liabilities*
Additional UAAL $2,500,000 $5,000,000 $2,500,000 $2,500,000 $1,250,000 ($1,250,000) -50% ($1,250,000) -50%
Contributions**
Repairs& $7,500 $1,619 $3,500 $3,500 $2,500 ($1,000) -29% ($1,000) -29%
Maintenance
Professional& $166,450 $131,863 $166,450 $166,450 $168,450 $2,000 1% $2,000 1%
Legal Services
Outside Services $319,200 $192,488 $345,000 $250,000 $357,000 $107,000 43% $12,000 3%
Materials& $20,000 $18,889 $31,000 $30,000 $51,000 $21,000 70% $20,000 65%
Supplies
Other Expenses $18,115 $15,316 $18,080 $28,380 $29,380 $1,000 4% $11,300 63%
Total $12,579,787 $14,754,657 $12,609,437 $12,591,970 $8,251,199 ($4,340,771) -34% ($4,358,238) -35%
* 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
FY 2017-18
Regular Status Employees Year-End FY 2018-19 FY 2019-20
Actual
Human Resources Analyst 3.0 2.0 2.0
Human Resources Manager 1.0 1.0 1.0
Senior Administrative Technician 1.0 2.0 2.0
Payroll Analyst 1.0 1.0 1.0
Total 6.0 6.0 6.0
Significant Budget Modifications
The Human Resources Operating Budget for FY 2019-20 is $8.3 million, a $4.4 million or 35% decrease
over the $12.6 million budget in FY 2018-19. Salaries & Wages include the agency-wide cost-of-living
adjustment. The decrease in Benefits is due to lower premiums for the new medical plans for
employees in this division and for all Central San retirees. Outside Services increased due to higher
fees and increased usage of several service providers, offset by lower Central San training and
recruitment expenses. Unfunded Liabilities decreased due to the elimination of the required OPEB
contribution and a reduction in the additional unfunded liabilities contribution.
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 & Wages includes $400,000 for Compensated Absences Accrual Payments.
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Page 118 of 310
• Employee Benefits includes $450,000 for Accrued Compensated Absences and $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 supplemental pension and OPEB trust payments. This
account description includes payments to the OPEB trust to meet the annual Actuarially
Determined Contribution (ADC) amount in full. The new medical plans have reduced the ADC so
low that Central San's pay-as-you-go retiree premiums are now higher than its ADC. There is no
required OPEB trust payment to fully satisfy the ADC in FY 2019-20.
Human Resources plays an important role in meeting the overall challenges that Central San is
addressing by working to retain an engaged and motivated workforce. This includes administering the
employee performance review and performance planning process; administering the labor
memoranda of understanding; attracting and retaining talented employees through a competitive pay
and benefit structure; and providing training programs to ensure that Central San managers,
supervisors and employees have the tools and knowledge to contribute to a high-performance
organization.
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Information Technology
OVERVIEW
The Information Technology (IT) Division supports all computer hardware, software, and
telecommunications needs at Central San. It is tasked with Central San's cybersecurity and is often
called to assist with the improvement and automation of business processes agency-wide through the
use of technology.
FY 2018-19 Strategic Accomplishments
• • Provide exceptional customer service
• Awarded Municipal Information Systems Association of California Award for Excellence
in IT Practices.
• Replaced external website with a more customer-friendly platform,with assistance from
the Communication Services and Intergovernmental Relations Division.
Be a fiscally responsible and effective wastewater utility
-( „ • Migrated data into the new e-Builder° project management software.
V • Built ongoing integration between e-Builder and the current SunGard° ERP system.
GOAL FIVE Maintain a reliable infrastructure
• • Worked with engineering to design and begin construction of anew, more secure Data
Center, as well as to procure the vendor to assist with equipment migration.
• Embrace technology, innovation,and environmental sustainability
• Worked with Purchasing staff and a consultant, GFOA,to procure anew ERP system
{ product and implementer.
• Implemented IntelliTime°timekeeping software for Human Resources,to transition
agency-wide timekeeping to a paperless system.
FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of •
® Information System
Uptime(Excluding 100.0% 99.5% fir
100.0% 100.0% J�;
Planned Maintenance)
® Data Backup and Zero(0) Zero(0) J�G Zero(0) Zero(0) Lost :�G
' Recovery Lost Data Lost Data ` r Lost Data Data ` r
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FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
• . i
9=11111
r
Build External
Customer
Relationships and Be well underway in the implementation of the new ERP system,with a goal of completing both
Awareness the financial and human resources components by early 2021.
Manage Costs
Protect District
Personnel and Complete construction of new Data Center and migration of equipment into the new location.
Assets from
Threats and
Emergencies
Replace desk phones with new digital phones equipped with advanced mobile and collaboration
Encourage the features.
Review and
Testing of
Technology to
Optimize and
Modernize Explore options to replace legacy permitting and billing systems.
Business
Operations
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Budget Overview by Expense Cate ory
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& $1,508,704 $1,383,426 $1,569,307 $1,576,100 $1,661,338 $85,238 5% $92,031 6%
Wages
Employee $1,219,553 $1,123,150 $729,744 $707,859 $688,200 ($19,659) -3% ($41,544) -6%
Benefits
Unfunded $0 $0 $509,668 $507,629 $524,113 $16,484 3% $14,445 3%
Liabilities
Utilities $146,440 $119,789 $129,800 $129,800 $109,500 ($20,300) -16% ($20,300) -160
Repairs& $886,750 $791,770 $1,047,090 $974,500 $957,414 ($17,086) -2% ($89,676) -9%
Maintenance
Outside $125,000 $83,488 $110,000 $32,000 $110,000 $78,000 244% $0 0/
°
Services
Materials& $6,200 $9,618 $6,200 $7,500 $7,500 $0 0% $1,300 21%
Supplies
Other $45,935 $15,215 $35,525 $35,525 $35,525 $0 0% $0 0%
°
Expenses
Total $3,938,582 $3,526,457 $4,137,334 $3,970,913 $4,093,590 $122,677 3% ($43,744) -1%
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
Regular Status Employees Year-End FY 2018-19 FY 2019-20
Actual
Information Technology Manager 1.0 1.0 1.0
Information Technology Supervisor 2.0 2.0 2.0
Project Manager/Business Analyst 1.0 1.0 1.0
System Administrator 2.0 2.0 2.0
Technical Support Analyst 3.0 3.0 3.0
Information Technology Analyst 1/11 2.0 2.0 2.0
Total 11.0 11.0 11.0
Significant Budget Modifications
The Information Technology Division Operating Budget for FY 2019-20 is $4.1 million, which remains
flat compared to the $4.1 million budget in FY 2018-19. The increase in Salaries & Wages includes the
agency-wide cost-of-living adjustment and increased due to step and personnel advancements. The
decrease in benefits is due to lower premiums for the new medical plans. Utilities decreased due to
the cancellation of the fiber optic circuit between the Headquarters Office Building and the Collection
System Operations Building.
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Purchasing and Materials Services
OVERVIEW
This division provides the necessary materials, supplies, equipment, services, and information to
support Central San's operations. It is responsible for contracting and procurement for all departments
(except construction contracts) and ensuring compliance with applicable federal, state, and local
regulations. The warehouse maintains Central San's inventory of needed supplies, materials,
equipment, and spare parts for operations, providing inventory control measures and analysis. In
addition, the warehouse provides delivery services for these items, as well as interoffice mail, and are
responsible for surplus disposition.
FY 2018-19 Strategic Accomplishments
M77WOMM Provide exceptional customer service
Ufa • Received the Achievement of Excellence in Procurement Award for the eighth-
consecutive year, recognizing organizational excellence in public purchasing.
• Maintained requisition tracking system to allow end-users to view status of
procurement requests, including a customer satisfaction survey to better monitor
performance and customer service goals.
• Processed over 600 procurement requests.
GOAL ' Strive to meet regulatory requirements
• Developed Board Policy No. BP 035—Purchasing Policy.
• Assisted with researching the Uniform Public Construction Cost Accounting Act
(UPCCAA)for Board adoption via Board Policy No. BP 036—Informal Bidding.
• Be a fiscally responsible and effective wastewater utility
( � • Assumed mail delivery services throughout Central San as an optimization measure,
�! recognizing the efficiencies to be gained by combining mail delivery services with the
warehouse's current delivery schedules.
• Leveraged spend through annual requirements contracts for 31%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 saved money through negotiated pricing
contracts.
• Promoted open competition and equal opportunity for qualified suppliers and service
providers by successfully soliciting and awarding high-level service and commodity-
based contracts.
• Participated in the Bay Area Chemical Consortium bidding process, resulting in awards
for aluminum sulfate, sodium hypochlorite, and sodium hydroxide.
• Completed cycle counts, including counting 5,788 total line items for a total piece count
of 102,567 and total value count of$3,518,678.
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• Develop and retain a highly trained and innovative workforce
491 9 • Planned for upcoming retirements and staffing changes through recruitments.
®� • Evaluated processes to strategically ensure that procurement resources are being
utilized efficiently.
GOAL FIVE Maintain a reliable infrastructure
• Prioritized and resolved various urgent requests for troubleshooting, repairs, and
rentals of critical equipment.
• Managed the assets spare parts team to establish goals and objectives and the
database to identify improvements and ensure efficient management.
GOAL SIX Embrace technology, innovation,and environmental sustainability
• Completed various trainings on electronic signature technology and started utilization
on a trial basis to better understand workflow capabilities.
FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of •
Internal N/A
® Purchasing
Customer Survey Rating Not a Metric in the �r >_70.0% 100.0% J r
of Satisfactory or Better FY 2016-18 Strategic Plan
Difference in Inventory
Value in Purchasing N/A . r
Database vs.Value Not a Metric in the J r <1.0% 1.0%
FY 2016-18 Strategic Plan
Submitted to Accounting
Accuracy of Physical N/A
Inventory Count Not a Metric in the ��; >_95.0% 99.0% i r
vs. Book Value FY 2016-18 Strategic Plan
FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective for FY 2019-20
q;
Continue to promote open competition and equal opportunity for qualified suppliers and service
Build External providers by successfully soliciting and awarding high-level service and commodity-based
Customer contracts.
Relationships and
Awareness
Further improve workflow using electronic signature technology and digital transaction
r management services.
Implement ERP software to improve procedures and align with industry best practices and
Manage Costs develop new administrative procedures to document the updated processes.
Continue to find opportunities to leverage spend through annual requirements contracts.
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Budget Overview by Expense Cate ory
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& $1,001,079 $847,270 $1,058,883 $917,800 $1,165,618 $247,818 27% $106,735 10%
Wages
Employee $834,953 $705,253 $508,940 $493,381 $475,397 ($17,984) -4% ($33,543) -7%
Benefits
Unfunded $0 $0 $346,563 $345,177 $345,573 $396 0% ($990) 0%
Liabilities*
Repairs& $23,000 $10,000 $23,000 $15,000 $23,000 $8,000 53% $0 0/
°
Maintenance
Professional& $35,000 $7,641 $35,000 $35,000 $35,000 $0 0% °
Legal Services $0 0/
Outside $29,000 $42,019 $49,000 $49,000 $49,000 $0 0% $0 0/
°
Services
Materials& $14,000 $11,799 $14,000 $11,500 $14,000 $2,500 22% $0 0/
°
Supplies
Other $21,900 $10,044 $15,900 $13,400 $15,900 $2,500 19% °
Expenses $0 0/
Total $1,958,932 $1,634,026 $2,051,286 $1,880,258 $2,123,488 $243,230 13% $72,202 4%
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Re uirements
FY 2017-18
Regular Status . .yees Year-End FY 2i 2019-20
Actual
Materials Coordinator 1.0 1.0 2.0
Materials Services Supervisor 1.0 1.0 1.0
Purchasing and Materials Manager 1.0 1.0 1.0
Senior Buyer 3.0 3.0 3.0
Senior Materials Coordinator 2.0 2.0 1.0
Contracts Specialist 0.0 1.0 0.0
Total 8.0 9.0 8.0
FY 2017-18
Limited i 2019-20
Actual
Warehouse Summer Student 1.0 1.0 0.0
Total 1.0 1.0 0.0
Significant Budget Modifications
The Purchasing and Materials Services Division Operating Budget for FY 2019-20 is $2.1 million, which
remains roughtly flat compared to the $2.1 million budget in FY 2018-19. Salaries & Wages include the
agency-wide cost-of-living adjustment, budgeting for a vacant Materials Coordinator position, and
temporary help for the ERP software conversion, offset by the Contracts Specialist position moving to
the Capital Projects Division. The decrease in benefits is due to lower premiums for the new medical
plans.
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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.
FY 2019-20 will see Purchasing working to implement the new ERP software, which is anticipated to
significantly improve contract management and automated procurement functionality, in addition to
providing staff with better tools for productivity and internal customer service.
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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.
FY 2018-19 Strategic Accomplishments
Be a fiscally responsible and effective wastewater utility
�_ice; • Managed claims aggressively to reduce costs and facilitate resolution, resulting in an
average cost per overflow claim of$8,720.
• Continued to debrief after losses to identify and implement preventive measures.
• Expanded procedure for managing claims arising from construction activities.
• Conducted and presented results of Risk Control Audit to Management Team.
• Initiated Enterprise Risk Management planning process via strategic risk identification
workshops.
• Developed interdepartmental standard operating procedure for coordinating claims
arising from capital projects.
GOAL FIVE Maintain a reliable infrastructure
• Prepared and presented Emergency Management Program report to the Board.
• Completed Vital Contractors Section of the Continuity Plan.
• Updated and restocked emergency supplies cache.
• Participated in the Operational Area Council to contribute to creating an effective and
multijurisdictional approach to disaster preparedness and planning.
• Conducted annual Emergency Operations Center activation exercise.
• Worked with Communication Services and Intergovernmental Relations to develop a
Crisis Communications Plan.
• Updated Access Control Procedure.
• Developed scope and design of pumping stations security improvements.
• Provided training on internal controls to Management Team.
• Updated Post Orders for contracted security guards.
• Coordinated and implemented procedural changes to maintain security during on-site
construction activities.
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FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of June 1
Workers' Compensation
<1.0 .7 J r <1.0 0.7 J r
Experience Modifier
1 Temporary Modified >80%of >95%of
Duty Provided Occupational 83.33% J�; Recordable 100% J�;
(Return to Work Program) Injuries Injuries
N/A
Self-Insurance Reserves as 100% 100% J�r Not A Metric In TheFY 2018-20
a Percentage of Target
Strategic Plan
FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective
Maintain an average cost per overflow claim of:5$25,000.
Actively seek opportunities to reduce risk in extant and developing business processes.
Manage Costs
Initiate next steps in implementing Enterprise Risk Management model.
• Incorporate emergency response activities into Emergency Operations Plan and Continuity of
Protect District Operations where applicable.
Personnel and
Assets from Continue implementation of recommendations from security assessment.
Threats and
Emergencies Finalize security system design criteria for use in upcoming capital projects.
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Budget Overview b_V Expense Cate or
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& $240,149 $150,701 $262,093 $260,500 $286,980 $26,480 10% $24,887 9%
Wages
Employee $196,621 $118,988 $101,561 $98,534 $122,766 $24,232 25% $21,205 21%
Benefits
Unfunded $0 $0 $87,304 $86,955 $91,484 $4,529 5% $4,180 5%
Liabilities
Repairs& $57,500 $16,966 $42,500 $42,500 $44,000 $1,500 4% $1,500 4%
Maintenance
Professional& $28,800 $8,628 $26,350 $17,650 $21,350 $3,700 21% ($5,000) -19%
Legal Services
Outside $423,000 $320,961 $453,500 $369,410 $448,000 $78,590 21% ($5,500) -1%
Services
Self-Insurance $585,000 $585,000 $779,500 $779,500 $825,000 $45,500 6% $45,500 6%
Expense
Materials& $59,000 $3,966 $53,000 $53,000 $6,000 ($47,000) -89% ($47,000) -89%
Supplies
Other $14,650 $12,775 $17,500 $18,965 $22,295 $3,330 18% $4,795 27%
Expenses
Total $1,604,720 $1,217,984 $1,823,308 $1,727,014 $1,867,875 $140,861 8% 1 $44,567 2%
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
FY 2017-18
Regular Status . .yees Year-End FY 2i 2019-20
Actual
Risk Management Administrator 1.0 1.0 1.0
Risk Management Specialist 1.0 1.0 1.0
Total 2.0 2.0 2.0
Significant Budget Modifications
The Risk Management Operating Budget for FY 2019-20 is $1.9 million, a $45,000 or 2% increase over
the $1.8 million budget in FY 2018-19. Salaries &Wages include the agency-wide cost-of-living
adjustment and increases due to step advancements. The decrease in Benefits is due to lower
premiums for the new medical plans. Self-Insurance increased to properly replenish the Self-Insurance
Fund. Materials & Supplies decreased due to the removal of Emergency Management Supplies
budgeted in FY 2018-19.
Risk Management assists Central San in effectively managing risks, broadly defined as anything that can
impede Central San from meeting its strategic goals. Building 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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Office of the General Manager and
Office of the Secretary of the District
The General Manager and Secretary of the District, along with a contracted Counsel for the District,
comprise Central San's Executive Management Team. The General Manager's and Secretary of the
District's offices have separate staff and reporting structure; however, their budgets are combined.
Office of the General Manager
OVERVIEW
The primary mission of the Office of the General Manager is to work with the Board of Directors
(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; acts as Central San's representative in
collaborative associations with other agencies; and provides general oversight to all operations. This
includes interagency relations, legislative activities, communications, optimization efforts, and the
completion of set goals for the year as part of the successful execution of the Strategic Plan.
This office also provides direction, support, and resources to departments so they may effectively and
efficiently accomplish the Vision, Mission, and Goals of Central San. The agency-wide FY 2018-19
accomplishments and strategic performance, as well as the FY 2019-20 targets and objectives, are
embodied in each of the individual division and program sections. Highlights of Central San's
accomplishments are included in the General Manager's Message at the beginning of this book and in
annual Strategic Plan and Optimizations reports produced by the Office of the General Manager each
yea r.
This office's staffing budget includes the Finance and Administration Department Director and
administrative staff supporting the General Manager, Finance Division, and the rest of the
Administration Department.
Fiscal Year 2018-19 Strategic Accomplishments
• • Provide exceptional customer service
• Completed Benchmarking Study to compare Central San's performance against other
water and wastewater agencies in California and nationwide.
• Continued participation as a Leading Utility of the World, an initiative of the Global
Water Leaders Group facilitating interagency learning opportunities.
• Produced and presented Strategic Plan Annual Report to the Board.
• Continued to provide oversight and support to staff in the completion of the fourth
session of the citizens academy, Central San Academy.
. • . Develop and retain a highly trained and innovative workforce
t�■ • Served as a mentor to an Assistant Engineer in the Mentorship Program,giving him the
ability to expand his experience at Central San and work on a project outside his normal
realm.
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GOAL SIX Embrace technology, innovation,and environmental sustainability
• Established formal Optimizations Program to commit to efficiency, effectiveness, and
continuous improvement by establishing a framework to track and report progress.
• Produced and presented Optimizations Annual Report to the Board.
• Facilitated Long-Term Vision Planning Board Workshop to discuss challenges and
opportunities, an expanded vision of what Central San could become overtime,
constraints that could limit the ability to achieve that vision, and how those constraints
can be addressed.
• Continued supporting staff in its efforts to augment the region's water supply through
the proposed Recycled Water Exchange and the request from the Dublin San Ramon
Services District East Bay Municipal Utility District Recycled Water Authority to divert
flow from the San Ramon Pumping Station to create recycled water.
• Served as a panelist at the American Water Summit conference, mentoring two young
professionals from another water sector agency on direct potable reuse as part of the
future of water.
• Attended the Global Water Summit to network with leaders of other water utilities,
private companies in the water industry, and government leaders to gain a broader
view on current water trends, disruptive designs, and how the digital revolution affects
the water sector.
FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of •
Awards or Recognitions N/A
® Received Not a Metric in the 10 10 . r
FY 2016-18 Strategic Plan
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FY 2019-20 Strategic Objectives
In the coming fiscal year, this office will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
• . i
.• . 11111
09
Build External Continue providing staff with resources and high-level guidance needed to maintain excellence in
Customer the industry.
Relationships and
Awareness
Represent Central San's best interests in involvement with industry associations and advocacy
Maintain a Strong groups regionwide,statewide, nationwide,and worldwide.
Reputation in the
Community
Continue to drive performance,efficiency,and effectiveness through the Optimizations Program
and fulfillment of the Strategic Plan.
Re-engineer
Business Processes
and Complete
Optimization Help oversee the significant effort to replace Central San's ERP system, including the selection of
Studies to Identify the vendor which best fits the agency's needs and staff augmentation to ensure day-to-day tasks
Opportunities to can be performed in addition to training on the new program.
Reduce Costs and
Align with Best
Practices
.1 Propose a culture statement for Board adoption that emphasizes Central San's priorities, including
RAIIg recognizing the value of employees.
Cultivate a
Positive Work
Culture Continue to meet regularly with labor bargaining unit representatives and division workgroups
to maintain an open channel of communication and address workplace issues.
Continue to work toward the fruition of the Recycled Water Exchange,an innovative partnership
Augment the among Central San,Contra Costa Water District, and Santa Clara Valley Water District to supply
Region's Water recycled water to neighboring refineries.
Supply
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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 Contra Costa County Elections Office, and arranges Ethics and Brown Act trainings
for the Board and staff. It also manages Central San's Records Management Program and responds to
Public Records Act requests.
The expenses for the Board are included in the Office of the Secretary of the District's budget and are
reflected in the Budget Overview by Expense Category table below as Director Fees & Expenses.
FY 2018-19 Strategic Accomplishments
• • Provide exceptional customer service
• Facilitated migration of data to Central San's new external website,which provides
easier access to Board and standing Committee agenda packets and minutes.
• Coordinated with Contra Costa County Elections Office regarding the
November 6, 2018 General Election to fill two seats on the Board.
GOAL TWO Strive to meet regulatory requirements
• Facilitated adoption of four new Board Policies.
• Coordinated biennial review of existing Board Policies and facilitated subsequent
amendments to ten policies.
• Began comprehensive review of the Master Records Retention Schedules to ensure each
department's business needs are met within legal guidelines and that physical or
electronic records were represented accurately.
• Provided training on managing e-mail records and the newly revised procedure for
responding to Public Records Act requests,wherein staff and Board Members may be
required to search their personal accounts and devices.
■ • ■ Develop and retain a highly trained and innovative workforce
< 1 • Coordinated newly required training for Board Members on Sexual Harassment
Prevention.
• Updated The Gavel—A User's Guide to the Board Meeting Process for use by staff.
• Updated the Board Member Handbook in preparation for the 2018 election cycle.
• Embrace technology, innovation,and environmental sustainability
• Began livestreaming Board meetings in house.
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FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY • 2018-19
Goal Metric Target Performance FY • • Performance
Target as of •
Biennial Review of All NSA . r . r
Not a Metric in the J r 100% 100% J r
j Existing Board Policies FY 2016-18 Strategic Plan
FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective for FY 2019-20
Begin livestreaming Board meetings on external customer website.
Provide Consider potential improvements to the Board Meeting Room, including the addition of
High-Quality multiple video cameras to improve transparency, upgrades to the electronic systems to
Customer Service accommodate mobile devices, replacing projector screens with monitors,and updating decor.
ma
Renew Transparency Certificate of Excellence from the California Special Districts Leadership
Maintain a Strong Foundation.
Reputation in the
Community
Develop new policy for destroying records that meets the requirements of Government
Code§60201(b)(2)and ensures evidence of compliance with retention policies,then train
Management staff on the policy.
Comply with all Review and present the updated Records Retention Schedules with incorporated destruction
Federal,State,and policy to the Board for adoption,finalize a new Records Program Administrative Procedure,
Local Regulations and provide training to appropriate employees.
Related to Convert 2015 Board Compensation Resolution to a new Board Policy to facilitate regular
Central San
review.
Administration
Conduct employee workshops on the Ethics Compliance, Brown Act,and Public Records Act.
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Office of the General Manager and
Office of the Secretary of the District
Budget Overview by Expense Category
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
I Variance Variance
Salaries& $1,366,016 $1,294,154 $1,238,422 $1,468,500 $1,442,515 ($25,985) -2% $204,093 16%
Wages
Employee $619,571 $861,485 $91,255 $494,028 $256,487 ($237,541) -48% $165,232 181%
Benefits
Unfunded $0 $0 $333,210 $483,269 $403,262 ($80,007) -17% $70,052 21%
Liabilities*
Director Fees $168,631 $138,462 $168,494 $158,494 $144,650 ($13,844) -9% ($23,844) -14%
&Expenses
Repairs& $10,800 $9,078 $14,300 $10,000 $10,000 $0 0% ($4,300) -30%
Maintenance
Professional& $150,000 $313,766 $175,000 $200,000 $200,000 $0 0% $25,000 14%
Legal Services
Outside $146,000 $128,414 $150,000 $155,650 $145,000 ($10,650) -7% ($5,000) -3%
Services
Materials& $20,150 $17,216 $20,150 $17,650 $24,950 $7,300 41% $4,800 24%
Supplies
Other $148,325 $77,643 $388,430 $335,430 $129,130 ($206,300) -62% ($259,300) -67%
Expenses
Total $2,629,493 $2,840,218 $2,579,261 $3,323,021 $2,755,994 ($567,027) -179/, $176,733 7%
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
FY 2017-18
Regular Status Employees Year-End FY 2018-19 FY 2019-20
Actual
Administrative Services Supervisor
1.0 1.0 1.0
(Office of the Secretary of the District)
Administrative Technician
1.0 1.0 1.0
(Office of the General Manager)
Assistant to the Secretary of the District
(Office of the Secretary of the District) 1.0 1.0 1.0
Director of Finance and Administration
1.0 1.0 1.0
(Office of the General Manager)
Executive Assistant
1.0 1.0 1.0
(Office of the General Manager)
General Manager
1.0 1.0 1.0
(Office of the General Manager)
Internal Auditor
0.0 0.0 1.0
(Office of the General Manager)
Management Analyst
(Office of the General Manager) 1.0 1.0 1.0
Secretary of the District
1.0 1.0 1.0
(Office of the Secretary of the District)
Senior Administrative Assistant
1.0 1.0 1.0
(Office of the General Manager)
Senior Administrative Technician 2.0 2.0 2.0
(Office of the General Manager and Office of the Secretary of the District)
Total 11.0 11.0 12.0
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FY 2017-18
d Duration Employees2019-20
Actual
Clerical Summer Student(Office of the Secretary of the District) 1.0 1.0 1.0
Total 1.0 1.0 1.0
Significant Budget Modifications
The Office of the General Manager/Office of the Secretary of the District Operating Budget for
FY 2019-20 is $2.7 million, a $100,000 or 7% increase over the $2.6 million budget in FY 2018-19.
Salaries & Wages include the agency-wide cost-of-living adjustment and increases due to step
advancements. Benefits increased due to a lower vacancy factor, offset by lower premiums for the
new medical plans. Director Fees & Expenses decreased due to lower medical plan premiums and a
reduction in training and conference expenses. Professional & Legal Services expenses increased due
to additional funding for legal research and advice. Other Expenses decreased due to the lack of
election expenses in FY 2019-20.
The Office of the General Manager, budgeted in this division, leads the effort to address all key
priorities facing Central San, as described in the General Manager's 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
The Engineering and Technical Services Department consists of three divisions that report to the
Director of Engineering and Technical Services. The primary function of this department is to ensure
Central San's infrastructure is well maintained and equipped for the future, including foreseeing
potential regulatory changes, climate impacts, and the end of assets' useful lives.
The Capital Projects division is responsible for the planning, design, construction, and/or rehabilitation
of treatment plant, collection system, and recycled water infrastructure. The Environmental and
Regulatory Compliance division is responsible for monitoring industrial businesses for environmental
compliance; conducting regulatory activities and permit monitoring; performing laboratory analysis;
and managing the Household Hazardous Waste Collection Facility. The Planning and Development
Services division handles development services, including right-of-way, property management,
inspection, mainline plan review; financial planning for rate-setting; planning, piloting, and applied
research; asset management and Geographic Information Systems data; and Resource Recovery
Program management.
The divisions that comprise this department include the following:
• Capital Projects is ,
• Environmental and Regulatory Compliance
• Planning and Development Services
0 �
ANETT
to
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F♦�1 1 'E
rrM T•
I
r.
i
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Capital Projects
OVERVIEW
This division conducts and manages the preliminary design, final design, public bidding, and
construction management of projects to improve or rehabilitate the treatment plant, pumping
stations, collection system sewer pipelines, general facilities, safety, and recycled water
infrastructure. In addition, this division works as one of the primary engineering resources at
Central San, including staff that provides data and support to facilitate the work, not just of the
Capital Projects division, but also of the entire organization.
Fiscal Year 2018-19 Strategic Accomplishments
• ` • Provide exceptional customer service
• Received 95%customer satisfaction rating for the Walnut Creek Sewer Renovations,
Ufa Phase 12 construction project.
• Received 97%customer satisfaction rating for the South Orinda Sewer Renovations,
Phase 6 construction project.
• Received 90%customer satisfaction rating for the North Orinda Sewer Renovations,
Phase 7 construction project.
Be a fiscally responsible and effective wastewater utility
• Implemented the Uniform Public Construction Cost Accounting Act for savings on
administrative costs of bidding and streamlining the bidding process for smaller
projects.
• Executed blanket contracts to cover similar work shared by multiple projects to save on
engineering and administration costs.
GOAL FIVE Maintain a reliable infrastructure
• Completed several critical projects, including the upgrade to the bar screens at the
Headworks facility and sewer renovations in Walnut Creek, Lafayette, and Orinda.
• Constructed new potable water system and upgraded infrastructure to ensure safety.
GOAL SIX Embrace technology, innovation,and environmental sustainability
• Supported the ongoing Hydrothermal Processing of Wastewater Solids pilot project.
• Repaired the Clearwell and expanded the use of recycled water to restrooms within the
treatment plant,to support the Recycled Water Program.
• Completed the selection and procurement contract for new air pollution control
equipment at the Martinez treatment plant.
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Fiscal Years 2017-18 and 2018-19 Strategic Performance and Fiscal Year 2019-20 Targets
IFY •
•
18-19/ FY 2018-19 Performance
Goal Metric Target Performance IFY • • as of Q3
Target
Average Customer >95.0%
Satisfaction Rating ° ° .�. .�.
>95.0% 94.3/° ; ; (Median 95.0%
on Construction
Projects rating)
>0.5%of >0.5%of
Assets
(7.6 Miles Per assets
® 0.4%of (7.6 miles per 0.4%
Miles of Pipeline Year for the
Replaced Next Five assets �t year for the (Replaced 5.3 J r
Years Starting (6.5 miles) next five years miles)
starting in FYs
in
FYs 2018-20) 2018-20)
Capital Expenditures
® as a Percentage of
Capital Budgeted >90.0% 85.0% ;�; >90.0% 82.0% ;�;
Cash Flow Including
Carry Forward
FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
• . •
Comply with All
Federal,State,and Complete final design and successfully bid the Solids Handling Facility Improvements,which will
Local Regulations include air pollution control equipment needed to reliably comply with current air regulations.
Related to
District
Administration
Continue to implement the Uniform Public Construction Cost Accounting Act to help streamline
infrastructure replacement projects using informal bidding and maintain a contractors list for
Manage Costs projects under$200,000.
Complete final design and successfully bid the Pumping Station Upgrades—Phase 1 project to
replace the diesel-driven engines and electrical switchgear at the Moraga and Orinda Crossroads
Manage Costs pumping stations for improved reliability and safety.
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Goal/StrategyObjective for FY 2019-20
® Continue to replace sewers in poor condition and respond to urgent or emergency sewer repairs
throughout the service area in a timely manner.
Facilitate Replace sewers needing difficult or frequent maintenance to allow the Collection System
Long-Term Capital Operations division to focus on other sewers and reduce sanitary sewer overflows.
Renewaland
Replacement Deliver projects on time and on budget using new construction management software, e-Builder.
Budget Overview by Expense Cate or
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
DeVariance Variance
scription Budget Actual Budget Projected Budget Projected Variance Budget Variance& $1,887,522 $1,680,619 $1,959,112 $1,714,800 $1,960,752 $245,952 14% $1,640 0%
Wages
Employee ($1,279,90) ($1,344,68) ($1,851,61) ($1,917,69) ($2,238,43) ($320,732) 17% ($386,820) 21%
Benefits
Unfunded $0 $0 $585,833 $626,317 $595,475 ($30,842) -5% $9,642 2%
Liabilities
Utilities $21,600 $18,236 $22,800 $19,000 $19,200 $200 1% ($3,600) -16%
Repairs&
Maintenance $3,500 $1,360 $3,000 $3,000 $3,000 $0 0% $0 0%
Outside $44,725 $28,433 $41,100 $32,600 $35,325 $2,725 8% ($5,775) -14%
Services
Materials& $30,700 $22,002 $28,700 $24,200 $33,600 $9,400 39% $4,900 17%
Supplies
Other $58,280 $31,044 $46,920 $41,910 $46,920 $5,010 12% $0 0/
°
Expenses
Total $766,422 $437,006 $835,854 $544,128 $455,841 ($88,287) -16% ($380,013) -45%
* 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.
Personnel Requirements
FY 2017-18
Regular Status Employees Year-End FY 2018-19 FY 2019-20
Actual
Administrative Assistant 1.0 2.0 2.0
Assistant Engineer 6.0 7.0 5.0
Assistant Land Surveyor 2.0 2.0 2.0
Associate Engineer 6.0 7.0 7.0
Capital Projects Division Manager 1.0 1.0 1.0
Contracts Specialist 0.0 0.0 1.0
Engineering Assistant 1/11 0.0 0.0 1.0
Engineering Assistant III 1.0 1.0 1.0
Engineering Technician III 3.0 3.0 3.0
Land Surveyor 1.0 1.0 1.0
Senior Engineer 3.0 3.0 3.0
Senior Engineering Assistant 1.0 1.0 1.0
Utility Systems Engineer 0.0 0.0 1.0
Total 25.0 28.0 29.0
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FY 2017-18
d Duration Employeesi
Actual
Summer Student 3.0 3.0 3.0
Intern 3.0 3.0 3.0
Total 6.0 6.0 6.0
Significant Budget Modifications
The Capital Projects Operating Budget for FY 2019-20 is $500,000, a $400,000 or 45% decrease over
the $800,000 budget in FY 2018-19. Salaries & Wages include the agency-wide cost-of-living
adjustment, increases due to step advancements, and the addition of a Contracts Specialist position,
offset by additional time being charged to work for capital projects. The decrease in Benefits is due to
lower premiums for the new medical plans and the additional time charged to projects. Outside
Services decreased due to a reduced need for consulting support. Materials & Supplies increased due
to the purchase of operating and safety supplies.
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. This division also oversees projects related to other strategic priorities of Central San,
including playing a role in maintaining a sustainable water supply and executing projects related to
resource recovery. The division is building its capacities to effectively administer a significantly larger
Capital Improvement Program in future years. This includes implementing a program management
information system and using outside resources to supplement Central San staff.
As noted in the footnote to the Budget Overview table, most of the cost for staff in this division are
charged to the projects that the group oversees and manages.
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Environmental and Regulatory Compliance
OVERVIEW
This division ensures that Central San is in compliance with applicable federal, state, and local
environmental laws, regulations, and policies. It 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 their results to
regulatory requirements to ensure 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. Through active participation in the Bay Area Clean Water
Agencies, this division works collaboratively with sister agencies to provide technical expertise,
financial support, and a public utility perspective to ensure that regulations affecting the Bay Area
wastewater community are well informed, thoughtful, and effective.
Fiscal Year 2018-19 Strategic Accomplishments
• Strive to meet regulatory requirements
• Achieved 21st year of continuous compliance with all National Pollutant Discharge
Elimination System permit requirements governing wastewater discharge.
• Maintained 2018 anthropogenic greenhouse gas emissions below the Cap and Trade
inclusion threshold.
• Evaluated preliminary treatment plant health risks in preparation for compliance with
Bay Area Air Quality Management District Rule 11-18.
• Completed root cause analyses on incidences of non-compliance with air permit
requirements.
• Division Manager served as Chair of the Bay Area Clean Water Agencies' Executive
Board and staff served in leadership roles on associated committees.
• Maintain a reliable infrastructure
• Evaluated feasibility of a wet ash handling system.
• Assisted in optimizing the furnace combustion oxygen measuring system by certifying a
new, more robust analyzer as a compliance monitoring instrument.
• ' Embrace technology, innovation,and environmental sustainability
• Oversaw over 45,000 visits to the Household Hazardous Waste Collection Facility and
Residential Recycled Water Fill Station by residents, small businesses, reuse customers,
retail partners, and fill station users.
• Continued use of tablets in the field for Environmental Compliance inspections.
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Fiscal Years 2017-18 and 2018-19 Strategic Performance and Fiscal Year 2019-20 Targets
FY 2017-18 IFY 2017-18 IFY • 2018-19
Goal Metric Target Performance IFY 2019-20 Performance
Target as
-
. •
• . National Pollutant Zero(0) Zero(0) ��� Zero(0) Zero(0) ��r
Discharge Elimination r � r
System Compliance Violations Violations Violations Violations
3 violations
(Will be 3 violations
Zero(0) Addressed . r Zero(0) (Will be r
} Title V Compliance ��r Addressed with ;e;
Violations with New violations
Wet New Wet
Scrubber) Scrubber)
s Recycled Water Zero(0) Zero(0) fir Zero(0) Zero(0) Mgr
j Title 22 Compliance Violations Violations fir
Violations Violations ` r
Anthropogenic 23,789 MT 24,500 MT
Greenhouse Gas COze r
• <25,000 <25,000 COze
�
Metric Tons J r Metric Tons Estimated for Jer
Emissions for Calendar
(Per Calendar Year) (MT) COze Year 2018 COze Calendar Year
2019
Annual Environmental
•• . Compliance
Inspections and 100.0% 100.0% ger 100.0% 100.0% J r
Permitting Completed
on Time
.• Household Hazardous N/A
Waste Management Not a Metric in the Zero(0) Zero(0) ;g;
Compliance FY 2016-18 Strategic Plan Violations Violations
Maximum Residential N/A
Recycled Water Fill J r
15 Minutes <15 Minutes ��; Not a Metric in the
Station Customer
FY 2018-20 Strategic Plan
Wait Time
Potable Water System
Monthly Testing N/A o o ;O;
Meets All Water Not a Metric in the 100% 100%
Quality Standards FY 2016-18 Strategic Plan , r
FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Goal/StrategyObjective for IFY 2019-20
j Strive to meet all air permit requirements(Title V and Permit to Operate).
Strive to Achieve
100%Permit
Compliance in Air, Strive to meet all wastewater-related permit requirements(National Pollutant Discharge
Water Land,and Elimination System Treatment Plant Permit, Nutrients Watershed Permit, Polychlorinated
Other Regulations Biphenyls, and Mercury Watershed Permit).
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Budget Overview by Expense Category
Salaries& $3,542,344 $3,551,010 $3,594,027 $3,706,500 $3,831,724 $125,224 3% $237,697 7%
Wages
Employee $2,670,133 $2,680,246 $1,480,320 $1,457,551 $1,416,357 ($41,194) -3% ($63,963) -4%
Benefits
Unfunded $0 $0 $1,140,247 $1,220,345 $1,205,956 ($14,389) -1% $65,709 6%
Liabilities
Utilities $24,300 $11,933 $13,500 $12,204 $14,300 $2,096 17% $800 6%
Repairs& $110,000 $77,509 $109,000 $91,250 $96,500 $5,250 6% ($12,500) -11%
Maintenance
Hauling& $474,925 $514,212 $538,425 $537,700 $590,125 $52,425 10% $51,700 10%
Disposal
Professional& $6,000 $33,039 $6,000 $5,350 $6,000 $650 12% $0 0%
°
Legal Services
Outside
Services $570,500 $396,789 $594,500 $516,663 $598,500 $81,837 16% $4,000 1%
Materials& $300,200 $319,184 $308,500 $281,200 $330,000 $48,800 17% $21,500 7%
Supplies
Other $147,302 $109,351 $150,880 $133,733 $149,741 $16,008 12% ($1,139) -1%
Expenses
Other
Expenses-Bay
Area Clean $605,816 $306,086 $462,000 $308,034 $389,000 $80,966 26% ($73,000) -16%
Water
Agencies
Total $8,451,520 $7,999,359 $8,397,399 $8,270,530 $8,628,203 $357,673 4% $230,804 3%
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Requirements
Year-EndRegular Status Employees •
FY 2018-19 IFY 2019-20
Actual
Administrative Assistant 1.0 1.0 1.0
Assistant Engineer 2.0 2.0 2.0
Associate Engineer 1.0 1.0 1.0
Chemist 1/11 5.0 5.0 5.0
Chemist 111 1.0 1.0 1.0
Environmental and Regulatory Compliance Division Manager 1.0 1.0 1.0
Environmental Compliance Inspector 1/11 6.0 6.0 6.0
Environmental Compliance Superintendent 1.0 1.0 1.0
Household Hazardous Waste Supervisor 1.0 1.0 1.0
Household Hazardous Waste Technician 1/11 3.0 3.0 3.0
Laboratory Superintendent 1.0 1.0 1.0
Senior Chemist 1.0 1.0 1.0
Senior Engineer 1.0 1.0 1.0
Senior Environmental Compliance Inspector 2.0 2.0 2.0
Senior Household Hazardous Waste Technician 2.0 2.0 2.0
Total 29.0 29.0 29.0
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IFY 2017-18
d Duration Employees
Actual
Laboratory Assistant Summer Student 2.0 2.0 1.0
Intern 1.5 2.0 3.0
Total 3.S 4.0 4.0
Significant Budget Modifications
The Environmental and Regulatory Compliance Operating Budget for FY 2019-20 is $8.6 million, a
$200,000 or 3% increase over the $8.4 million budget in FY 2018-19. Salaries & Wages include the
agency-wide cost-of-living adjustment and increases due to step advancements. The decrease in
Benefits is due to lower premiums for the new medical plans, offset by higher premiums for workers'
compensation. Repairs & Maintenance decreased due to lower than expected maintenance expenses
in FY 2018-19 that is expected to continue in FY 2019-20. Hauling & Disposal increased due to new
contract for hazardous waste disposal. Other Expenses-Bay Area Clean Water Agencies decreased due
to a lower than anticipated possible nutrient studies expense.
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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Planning and Development Services
OVERVIEW
This division provides development services, including right-of-way, property management,
development inspection, permit counter operations, and mainline plan review. This division also leads
pilot studies to provide in-depth results specific to Central San's operations and needs; oversees asset
management, geographic information systems, and computerized maintenance management systems
used by staff and the public; and conducts financial planning for rates, capacity fees, permits, and
sewer service charges, including preparation of the rate increases that may be necessary to adequately
fund operations, maintenance, and the sewer construction budget for the increase in Capital
Improvement Program needs, which have quadrupled over the past four years.
FY 2018-19 Strategic Accomplishments
GOALONE Provide exceptional customer service
• Created an interactive map on the external customer website for visitors to view capital
improvement work on the collection system.
Be a fiscally responsible and effective wastewater utility
� • Developed rate alternative scenarios that reduced 10-year Capital Improvement Plan
(Ten-Year CIP) cash flow and Central San's reliance on debt by$34 million.
• Presented new rate structure for mixed-use businesses and non-residential customers
as part of the proposed rate for Board consideration on April 18, 2019.
• Presented alternatives for Board input consistent with debt management policy,fiscal
reserve policy, 10-Year CIP, and general ratemaking principles at two Financial
Workshops and a Public Hearing.
• Prepared a State Revolving Fund application in the amount of$89.6 million for the
Solids Handling Facility Improvements Project.
• Completed Lime Reduction Bench Scale Study and paper recommending full-scale
testing for potential savings in lime procurement costs.
• Conducted annual reviews of the following:
o Current rates and fees, for reasonableness and consistency
o Capacity fees, to ensure appropriate fees are assessed and collected
o Businesses, to ensure consistent use with existing permits and payment of
capacity fees.
GOAL FIVE Maintain a reliable infrastructure
Initiated comprehensive two-year program to perform condition assessments for the
Steam Aeration and Blower System Project.
• Embrace technology, innovation,and environmental sustainability
• Continued work toward a recycled water exchange program with Contra Costa Water
District and Santa Clara Valley Water District.
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GOAL SIX • Presented at the 2018 Water Environment Federation Technical Conference on the Wet
Scrubber Pilot, an award-winning air pollution control research project that tested a
new air cleaning technology system, saving over$14 million in capital costs.
• Presented on optimizations at the 2018 California Water Environment Association
Conference.
• Completed Phase 1 of the Hydrothermal Processing of Wastewater Solids project,
which will test an emerging hydrothermal resource recovery process for solids handling.
Phase 1 included planning and preliminary design for Department of Energy evaluation
and successful submittal of a $3 million California Energy Commission grant.
Additionally, staff helped obtain an additional $3 million in grant funding and presented
the project to the Bay Area Biosolids Coalition.
• Completed a desktop evaluation and recommended eventual pilot testing of two
innovative nutrient removal technologies:AquaNereda° (an aerobic granular sludge
technology) and Membrane Aerated Biofilm Reactor.
• Implemented a pilot project for new recycled water meter technology(Water Pigeon°).
• Continued exploring opportunities for a solar energy project that meets the cost-
effectiveness criteria in the Board's recently updated Energy Policy.
• Completed implementation of and training on the e-Builder program management
information system.
FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of •
Average Customer
Satisfaction Rating on . r >95 0o
� . r
' Permit Counter >95.0% 96.0% ;0; (Median 100.0% ;a;
Interactions Rating)
SSC
Less Than
SSC Less Median of Bay
r
Median Service
Than Area Agencies
Median of Target Met JA; Target Met J��
Affordability SSC Plus Ad
Bay Area Valorem Tax
Agencies Less Than
Average of Bay
Area Agencies
Gallons of Recycled 2,447,911
Water Distributed at
>14M Gallons N/A
the Residential Recycled Gallons Per (Dependent Q, Not a Metric in the
Water Fill Station Year on Drought FY 2018-20 Strategic Plan
and Weather)
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FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 Performance
Goal Metric Target Performance FY 2019-20 as of Q3
Target
Gallons of Recycled 796,338
Water Distributed >41VI Gallons N/A
Through the Gallons Per (Dependent Not a metric in the
Commercial Truck Fill Year on Drought FY 2018-20 Strategic Plan
Program
Weather)
>3 Pilot
>3 Pilot Tests
Pilot Test New and Tests Or 5 Pilot Tests .�. 5 Pilot Tests .gr
` ' or Reviews Per i r
Promising Technology Reviews or Reviews Year or Reviews ` '
Per Year
Present Research >3 Papers ��r >3 Papers or 4 Papers and .gr
4 Papers � � Presentations � �
Papers and Findings Per Year Per Year Presentations
FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
• . •
ma
Build External Update 2014 Standard Specifications for Design and Construction.
Customer
Relationships and
Awareness
Develop
Alternatives for
New Revenues Update the State Revolving Fund application for the Solids Handling Facility Improvements
and Funding Project if not selected for funding and prepare an application for the Filter Plant Project by the
Sources December 31, 2019 State deadline.
(e.g.,interagency
Agreements,
Services,and
Recycled Water)
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Goal/Strategy • . i
GOAL FIVE
•
Manage Assets Develop prioritization model for vertical assets.
Optimally
Throughout Their
Lifecycle
GOAL FIVE
Continue work on comprehensive two-year program to perform condition assessments for the
Steam Aeration and Blower System Project.
Facilitate
Long-Term Capital
Renewal and Develop a planning tool for future capital spending for the program management information
Replacement system,e-Builder.
NComplete evaluation of additional cost-effective solar energy projects available for Central San's
Reduce Reliance operation.
on Non-Renewable
Energy
• Optimize plan review workflow for Development Mainline Construction.
Encourage the Evaluate and review permitting software.
Review and
Testing of
Technology to Review mobile applications software for Construction Inspectors.
Optimize and
Modernize
Business Participate in Phase 2 of the Hydrothermal Processing of Wastewater Solids project.
Operations
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Budget Overview by Expense Cate ory
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Projected Budget
Description Budget Actual Budget Projected Budget Variance Variance Variance Variance
Salaries& $4,464,830 $4,597,315 $4,444,903 $4,621,700 $4,580,592 ($41,108) -1% $135,689 3%
Wages
Employee $2,278,748 $2,699,154 $761,183 $388,817 $488,384 $99,567 26% ($272,799) -36%
Benefits
Unfunded $0 $0 $1,435,363 $1,535,198 $1,434,618 ($100,580) -7% ($745) 0%
Liabilities*
Utilities $137,300 $150,810 $136,900 $142,700 $149,800 $7,100 5% $12,900 9%
Repairs& $59,400 $25,766 $59,400 $21,400 $35,400 $14,000 65% ($24,000) -40%
Maintenance
Professional& $165,000 $131,984 $165,000 $131,500 $165,000 $33,500 25% $0 0/
°
Legal Services
Outside $569,542 $342,357 $634,542 $504,400 $761,542 $257,142 51% $127,000 20%
Services
Materials& $47,550 $26,210 $57,850 $37,000 $57,850 $20,850 56% $0 0/
°
Supplies
Other $94,025 $62,541 $105,012 $72,985 $106,712 $33,727 46% $1,700 2%
Expenses
Total $7,816,395 $8,036,137 $7,800,153 $7,455,700 $7,779,898 $324,198 4% ($20,255) 0%
* 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.
Personnel Requirements
FY 2017-18
EmployeesRegular Status FY 2018-19 FY 2019-20
Actual
Administrative Assistant 1.0 1.0 1.0
Administrative Services Supervisor 1.0 1.0 1.0
Assistant Engineer 2.0 2.0 2.0
Associate Engineer 4.0 4.0 4.0
Construction Inspector 4.0 4.0 4.0
Development Services Supervisor 2.0 2.0 2.0
Director of Engineering and Technical Services 1.0 1.0 1.0
Engineering Assistant III 5.0 5.0 5.0
Engineering Assistant 1/11 2.0 2.0 2.0
Engineering Technician 1/11 1.0 1.0 1.0
GIS Analyst 2.0 2.0 2.0
GIS/CMMS Administrator 1.0 1.0 1.0
Maintenance Planner 1.0 1.0 1.0
Management Analyst 1.0 1.0 1.0
Planning and Development Services Division Manager 1.0 1.0 1.0
Program Manager 1.0 1.0 1.0
Senior Engineer 3.0 4.0 4.0
Senior Right-of-Way Agent 2.0 2.0 2.0
Total 35.0 36.0 36.0
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IFY 2017-18
d Duration Employeesi
Actual
Engineering Assistant Summer Student 8.0 5.0 4.0
Intern 4.0 3.0 4.0
Total 12.0 8.0 8.0
Significant Budget Modifications
The Planning and Development Services Operating Budget for FY 2019-20 is $7.8 million, which
remained flat compared to the $7.8 million budget in FY 2018-19. Salaries & Wages include the
agency-wide cost-of-living adjustment and increases due to step advancements, offset by additional
time being charged to work for capital projects. The decrease in Benefits is due to lower premiums for
the new medical plans and the additional time charged to projects. Utilities increased due to rising
utility rates. Repairs & Maintenance decreased due to lower than expected maintenance expenses
related to Central San-owned rental properties. Outside Services increased due to the need for
technical service firms to staff divisional objectives.
The Planning and Development Services Division's budget allows Central San to meet several key
challenges including maintaining customer awareness of Central San's services, the costs involved in
meeting those responsibilities, and meeting service level expectations at responsible rates. This is
accomplished through the division's work in maintaining the financial plan and rate-setting, by
balancing 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 program and
efforts to maintain a sustainable water supply.
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Operations Department
The Operations Department consists of three divisions, the Safety Program, and the Recycled Water
Program. The Recycled Water Program consists of staff from multiple departments. The primary
function of the Operations Department is to collect, clean, 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 that comprise this Department include the following:
• Collection System Operations
• Plant Maintenance
• Plant Operations
• Safety Program
• Recycled Water ProgramP,
r�
n.
l !a
hr
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Collection System Operations
OVERVIEW
This division is responsible for cleaning, maintaining, and repairing 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. This division also includes an in-house vehicle shop, which is
responsible for the maintenance of all Central San vehicles.
FY 2018-19 Strategic Accomplishments
• • Provide exceptional customer service
• Received first place award for California Water Environment Association 2018 Large
Collection System of the Year in the Bay Area and second place award for California
Water Environment Association 2018 Large Collection System of the Year in the State of
California.
• Responded to 411 customer service phone calls.
• Received and cleared over 27,700 USA locating requests on time.
GOAL ' Strive to meet regulatory requirements
> ` • Responded to 28 sanitary sewer overflows (1.85 overflows per 100 miles—the lowest
1 overflow rate in Central San's history).
• Cleaned 778 miles of sewers.
• Completed 22,014 work orders on schedule 98%of the time.
• Performed 22%of all cleaning work on "hotspots."
• Closed circuit televised 205 miles of sewers.
Be a fiscally responsible and effective wastewater utility
• Reduced vehicle fleet by 2 vehicles after reviewing automatic vehicle location data
analytics, eliminating maintenance costs and registration fees for those vehicles.
• Continued to optimize cleaning schedules to dispatch staff more efficiently and clean
sewers as needed to best prevent overflows.
GOAL FIVE Maintain a reliable infrastructure
• Completed 982 services on vehicles and equipment.
• Continued to convert cleaning schedules from routine to scheduled maintenance to
ensure each line has a scheduled cleaning date.
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FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of June 1
Average Onsite
Response Time for
93131013 Collection <20.0 ,Br 31.4 ,Br
MASystem Emergency Minutes 35.3 Minutes : ; <20.0 Minutes Minutes ` r
Calls, During Working
Hours
Average Onsite
gjgMM Response Time for
<30.0 ,�r 33.5 ,�r
� Collection 37.8 Minutes j r <40.0 Minutes j r
System Emergency Minutes , r Minutes ` r
Calls,After Hours
.. Average Customer
>_3.80 out of 3.96 out of @r >_3.80 out of 3.90 out Mgr
Service Rating for 4.00 4.00 ` r 4.00 of 4.00 ` r
Emergency Calls
.• <3.0 Spills per <2.5 Spills Per 1.5 Spills
Sanitary Sewer 1.7 Spills per , ► per 100 ,
Overflows 100 Miles of 100 Miles j�► 100 Miles of Miles of `�r
Pipeline Pipeline
Pipeline
Spills to Public Water <3 1 j�; <3 6 j�;
Percentage of Spillsr r
o o , ,
<500 Gallons >95.0% 87.5/0 j�; >95.0% 91.3% 1 r
®.• Pipeline Cleaning
Schedules >95.0% 97.0% i r >95.0% 99.0% i r
Completed on Time
On>3.0%of
.• Pipelines On>_3.0%of
Pipeline Cleaning o , r Pipelines o , r
Cleaned on 2.8/ ,�r 3.8/0 ,�r
j QA/QC le Annual ' r Cleaned on an ` r
Annual Basis
Basis
®.• Pipeline Cleaning
QA/QC >98.0% 88.9% i r >98.0% 94.4% i r
Passing Rate
® Uptime for Vehicles N/A o o ; rr
and Equipment
' Not a Metric in the 100.0% 99.3/0 � r
FY 2016-18 Strategic Plan
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FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
• . i
Build External Continue to respond quickly to emergency calls both during and after work hours.
Customer
Relationships and
Awareness
Continue to proactively and optimally clean sewers to prevent overflows.
Strive to Minimize
the Number of
Sanitary Sewer Optimize cleaning schedule frequencies and location of work orders.
Overflows
aInvestigate and provide recommendations for the use of alternative diesel fuels.
Manage Costs
Budget Overview by Expense Cate ory
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& $6,164,374 $6,131,156 $6,272,384 $6,606,000 $6,913,694 $307,694 5% $641,310 10%
Wages
Employee $5,087,527 $4,867,427 $3,031,274 $3,052,495 $3,046,602 ($5,893) 0% $15,328 1%
Benefits
Unfunded $0 $0 $1,942,922 $2,078,574 $2,052,083 ($26,491) -1% $109,161 6%
Liabilities
Utilities $142,400 $151,035 $145,400 $157,400 $157,400 $0 0% $12,000 8%
Repairs& $1,624,304 $1,047,768 $1,474,504 $1,383,504 $1,449,503 $65,999 5% ($25,001) -2%
Maintenance
Hauling& $131,000 $128,592 $131,000 $119,800 $131,000 $11,200 9% $0 0%
°
Disposal
Professional& $7,500 $922 $7,500 $2,000 $7,000 $5,000 250% ($500) -7%
Legal Services
Outside $110,600 $63,002 $59,680 $67,030 $83,280 $16,250 24% $23,600 40%
Services
Materials& $749,550 $738,814 $756,951 $739,252 $769,452 $30,200 4% $12,501 2%
Supplies
Other $138,958 $122,047 $138,445 $125,653 $140,125 $14,472 12% $1,680 1%
Expenses
Total $14,156,213 $13,250,762 $13,960,060 $14,331,708 $14,750,139 $418,431 3% $790,079 6%
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
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Personnel Requirements
EmployeesFY 2017-18
000000reegular Status
Actual
Administrative Assistant 1.0 1.0 1.0
Senior Administrative Assistant 1.0 1.0 1.0
Administrative Technician 2.0 2.0 2.0
Collection System Maintenance Scheduler 1.0 1.0 1.0
Collection System Operations Division Manager 1.0 1.0 1.0
Construction Equipment Operator 2.0 2.0 2.0
Field Operations Superintendent 1.0 1.0 1.0
Maintenance Crew Leader 16.0 18.0 18.0
Maintenance Crew Member 1/11 18.0 18.0 18.0
Maintenance Supervisor 4.0 4.0 4.0
Senior Engineer 1.0 1.0 1.0
Utility Worker 2.0 2.0 2.0
Vehicle and Equipment Mechanic 3.0 3.0 3.0
Vehicle Maintenance and Equipment Maintenance Supervisor 1.0 1.0 1.0
Total 54.0 56.0 56.0
EmployeesFY 2017-18
Limited Duration
Actual
Laborer Summer Student 3.0 3.0 0.0
Clerical Summer Student 1.0 1.0 0.0
Total 4.0 4.0 0.0
Significant Budget Modifications
The Collection System Operations Operating Budget for FY 2019-20 is $14.8 million, an $800,000 or 6%
increase over the $14.0 million budget in FY 2018-19. Salaries & Wages include the agency-wide
cost-of-living adjustment and increases due to step advancements. Benefits increased due to higher
premiums for workers' compensation, offset by lower premiums for the new medical plans. Utilities
increased due to higher rates experiences in FY 2018-19. Repairs & Maintenance decreased due to the
Vehicle and Equipment Shop preforming more in-house repairs. Outside Services increased due to cost
increase for Underground Service Alert (USA-811).
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Plant Maintenance
OVERVIEW
This division is responsible for maintaining all mechanical, electrical, and instrumentation equipment
and systems for the treatment plant, laboratory, as well as all facilities at the Martinez campus. It
consists of five shops: Mechanical, Machine, Electrical, Instrumentation, and Building and Grounds,
as well as a Reliability Engineering section. The Pumping Station workgroup in this division operates
and maintains the 18 pumping stations throughout the service area. This division's aim is to be a
high-performance team that maintains the treatment plant and pumping stations in an optimal state
and to continuously improve overall maintenance effectiveness and asset reliability over the life cycle
of the asset.
FY 2018-19 Strategic Accomplishments
GOALTWO Strive to meet regulatory requirements
1 • Awarded the 2018 Uptime Award for Best Reliability Engineering for Maintenance
J Program from Reliabilityweb.com.
• Maintained all equipment and systems to achieve the National Association of Clean
Water Agencies Peak Performance Platinum Award for the 21st consecutive year.
Be a fiscally responsible and effective wastewater utility
• Worked with Engineering in the pre-design, design, and construction stages to ensure
procurement and correct installment of the latest, safest, most reliable equipment and
technology.
• Obtained new tools and equipment to increase work efficiency, such as an Iron Worker
for the Mechanical Shop.
. • ■ Develop and retain a highly trained and innovative workforce
� = • Improved Mechanical Maintenance Technician Trainee Program.
• Added new technical learning libraries content.
• Enhanced hiring process to include a hands-on practical exam.
• Engaged with community and technical colleges' recruitment and program
development.
GOAL FIVE Maintain a reliable infrastructure
• Completed 22 Don't Just Fix It; Improve It initiatives to increase maintenance
effectiveness, lower costs, and increase equipment reliability.
• Completed 113 safety work orders.
• Continuously reviewed maintenance procedures and identified opportunities to
improve 16 preventative maintenance program tasks.
• Increased accessibility of asset information for maintenance staff including tracking
Don't Just Fix It; Improve It initiatives, improving spares management, creating new
workflows to the Cityworks° maintenance system, and adding job plans to the
geographic database, and GeoPortal°.
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GOAL SIX Embrace technology, innovation,and environmental sustainability
• Made additions to the Asset Condition Monitoring program such as implementing
i breaker overload testing program and winding analyzer program,which play a
significant role in lowering equipment downtime costs, increasing reliability of
equipment, increasing effectiveness of the motor management program, and
enhancing acceptance testing of new or overhauled equipment.
FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of •
® Safety-Prioritized Work
Orders Completed on 100% 98% ;e; 100% 90% i r
Time
® Regulatory Title V Work
Orders Completed on 100% 100% r 100% 99% i r
Time
Planned Treatment
Plant Preventative NSA qr
Not a Metric in the >95% 100% � r
' Maintenance FY 2016-18 Strategic Plan , r
Completed on Time
>18 million >18 million
million
kWh Per Year 20.1 kWh Per Year
Kilowatt Hours(kWh)of (Reported as ;�r (Reported as a 22.5 million j r
Electricity Produced kWh kWh
a Rolling Rolling
Average) Average)
>200,000 >220,000 kwH
kWh of Solar Power kWh Per Year 282,300 igr (Reported as a 262,900 ���
Produced at CSO and (Reported as kWh ` r Rolling kWh . r
the HHWCF a Rolling
Average) Average)
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FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective
gel
Continue to apply the latest arc-resistant switchgear with arc-quenching devices to make it safer for
Meet or Exceed staff to operate and service electrical equipment.
Industry Safety
Standards
Actively participate in all phases of asset lifecycles,including design,installation,operation,
maintenance,and replacement planning.
® Commit to consistently perform the most effective maintenance tasks on the equipment at the
optimal frequency.
Continue
Maintenance on Utilize a repeatable and comprehensive approach to maintenance that optimizes asset lifecycle
Assets Using a based on reliability,cost,and criticality,including continuing to perform additional Reliability Centered
Reliability-Based Maintenance, Root Cause Analysis,Preventive Maintenance Optimization analysis,and Defect
Approach Elimination initiatives on critical equipment and systems.
Continue to develop the Asset Centered Maintenance Program and integrate with analytics for
earliest warning of equipment degradation.
Budget Overview by Expense CategorV
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& $5,501,480 $5,278,262 $5,727,357 $5,565,100 $5,983,974 $418,874 8% $256,617 4%
Wages
Employee $4,304,142 $4,045,772 $2,455,560 $2,419,171 $2,453,090 $33,919 1% ($2,470) 0%
Benefits
Unfunded $0 $0 $1,751,735 $1,764,647 $1,801,074 $36,427 2% $49,339 3%
Liabilities
Chemicals $300,000 $115,950 $250,000 $200,000 $200,000 $0 0% ($50,000) -20%
Utilities $508,150 $532,526 $516,550 $516,550 $516,550 $0 0% $0 0%
Repairs& $2,408,300 $2,368,884 $2,528,450 $2,471,450 $2,511,650 $40,200 2% ($16,800) -1%
Maintenance
Hauling& $158,800 $157,963 $163,800 $163,800 $163,800 $0 0% $0 0%
°
Disposal
Outside $257,750 $160,281 $236,200 $401,700 $220,200 ($181,500) -45% ($16,000) -7%
Services
Materials& $559,200 $686,234 $575,200 $679,400 $594,200 ($85,200) -13% $19,000 3%
Supplies
Other $140,836 $186,903 $161,611 $204,111 $165,811 ($38,300) -19% $4,200 3%
Expenses
Total $14,138,658 $13,532,776 $14,366,463 $14,385,929 $14,610,349 $224,420 2% $243,886 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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Personnel Requirements
EmployeesFY 2017-18
==Wegular Status
Actual
Assistant Engineer 1.0 1.0 0.0
Buildings and Grounds Supervisor 1.0 1.0 1.0
Electrical Shop Supervisor 0.0 1.0 1.0
Electrical Technician 4.0 4.0 4.0
Instrument Shop Supervisor 1.0 1.0 1.0
Instrument Technician 3.0 3.0 3.0
Machinist 2.0 2.0 2.0
Maintenance Crew Leader 1.0 1.0 1.0
Maintenance Planner 3.0 3.0 3.0
Maintenance Technician 1/11, Mechanical 1.0 2.0 2.0
Maintenance Technician 111, Mechanical 6.0 7.0 7.0
Mechanical Supervisor 2.0 2.0 2.0
Painter 1.0 1.0 1.0
Plant Maintenance Division Manager 1.0 1.0 1.0
Plant Maintenance Superintendent 1.0 1.0 1.0
Pumping Stations Operator 1/11 4.0 4.0 4.0
Pumping Stations Operator 111 2.0 2.0 2.0
Pumping Stations Supervisor 1.0 1.0 1.0
Senior Engineer 1.0 1.0 1.0
Utility Systems Engineer 0.0 0.0 1.0
Utility Worker 6.0 7.0 7.0
Total 42.0 46.0 46.0
FY 2017-18 FY 2019-
. Duration Employees
Actua"ah 411111111111111111
Laborer Summer Student 10.0 11.0 5.0
Engineering Assistant Summer Student 0.0 1.0 0.0
Intern 1.0 1.0 1.0
Total 11.0 13.0 6.0
Significant Budget Modifications
The Plant Maintenance Operating Budget for FY 2018-19 is $14.6 million, a $200,000 or 2% increase
over the $14.4 million budget in FY 2018-19. Salaries & Wages include the agency-wide cost-of-living
adjustment, increases due to step advancements, and a General Manager Transitional Position for
Maintenance Technician. The decrease in Benefits is due to lower premiums for the new medical
plans, offset by higher premiums for workers' compensation. Chemicals decreased due to
improvements in monitoring and adjusting chemicals based on seasonal and operational conditions.
Outside Services decreased due to maintenance task optimizations and revised service contracts.
Materials & Supplies increased due to planned maintenance requiring higher priced items.
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The Plant Maintenance Division Budget directly addresses several of the principal 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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Plant Operations
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 cleans an average of 34.7 MGD,
2.5 MGD of which is further treated into recycled water and reused within the treatment plant and
distributed to customers for non-potable uses. This division's budget also includes the head of the
Operations Department—the Deputy General Manager—and the administrative services for the
Plant Operations and Plant Maintenance Divisions.
FY 2018-19 Strategic Accomplishments
GOAL ' Strive to meet regulatory requirements
t • Maintained eligibility for the National Association of Clean Water Agencies Peak
Performance award platinum status for the 21st consecutive year, recognizing 100%
compliance with the wastewater discharge permit.
• Maintain a reliable infrastructure
• Assisted Engineering in the design, coordination, and construction of the Headworks
Screenings Upgrades; Piping Renovations—Phase 9; Mechanical and Concrete
Renovations; Pump and Blower Building Seismic Upgrades; Plant Operations Building
Seismic Upgrades; Influent Pump Electrical Improvements; and Solids Handling Facility
Improvements Projects.
• Improved reliability of the Ultraviolet Disinfection Basins by replacing obsolete control
hardware and pilot testing low ultraviolet transmittance.
• Initiated a valve exercising program to ensure valves throughout the plant do not lose
function due to lack of use.
• Embrace technology, innovation,and environmental sustainability
• Spearheaded the training and use of DocuSign° as a pilot,which is now being used by
more divisions for electronic signatures.
FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of •
National Pollutant Zero(0) Zero(0) ��G Zero(0) Zero(0) Mgr
Discharge Elimination -fir
, r
System Compliance Violations Violations Violations Violations
3 Violations 3
(Will Be Violations
Zero(0) Addressed g r Zero(0) (Will Be r
Title V Compliance J r Addressed J r
Violations with New Violations with New
Wet Wet
Scrubber)
Scrubber)
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FY 2017-18 FY 2017-18 FY • 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as
-
. •
Recycled Water Title 22 Zero(0) Zero(0) :lr Zero(0) Zero(0) Mgr
Y Compliance Violations Violations ` ' Violations Violations ` r
24,500
., . Anthropogenic Less than 23,789 MT Less than MT CO2e
Greenhouse Gas Emissions 25,000 MT CO2e :�� 25,000 Estimated J�r
(Per Calendar Year) CO2e for Calendar ` ' Metric Tons for ` r
2018 CO2e Calendar
2019
FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
• . -
Strive to Achieve Maintain eligibility for the National Association of Clean Water Agencies Peak Performance
100%Permit Award Platinum Status for the 22nd consecutive year.
Compliance in Air,
Water,Land,and
Other Regulations
ties
Maki
Ensure Adequate Successfully succession plan and appropriately staff the division to meet the challenges of any
Staffing and
Training to Meet upcoming departures.
Current and
Future
Operational Levels
Manage Assets Continue to work with Engineering in the design,coordination,and construction of projects
Optimally affecting the treatment plant.
Throughout Their
Lifecycle
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Budget Overview by Expense Cate ory
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Projected Budget
Description Budget Actual Budget Projected Budget Variance Variance Variance Variance
Salaries& $5,391,494 $5,505,216 $5,317,180 $5,909,300 $6,052,856 $143,556 2% $735,676 14%
Wages
Employee $3,793,932 $4,061,415 $2,031,456 $2,246,114 $2,128,325 ($117,789) -5% $96,869 5%
Benefits
Unfunded $0 $0 $1,629,115 $1,860,645 $1,828,627 ($32,018) -2% $199,512 12%
Liabilities
Chemicals $1,098,000 $840,117 $1,125,000 $1,120,000 $1,320,000 $200,000 18% $195,000 17%
Utilities $3,484,600 $3,195,409 $3,002,600 $3,027,600 $3,067,600 $40,000 1% $65,000 2%
Repairs& $4,200 $36,050 $4,200 $500 $4,200 $3,700 740% $0 0/
°
Maintenance
Hauling& $249,000 $222,805 $283,000 $255,000 $293,000 $38,000 15% $10,000 4%
Disposal
Professional& $4,000 $2,743 $1,000 $1,000 $1,000 $0 0% $0 0/
°
Legal Services
Outside
Services $42.000 $0 $22,000 $0 $22,000 $22,000 100% $0 0%
Materials& $147,900 $174,692 $144,900 $157,200 $144,900 ($12,300) -8% $0 0/
°
Supplies
Other $671,850 $466,101 $662,200 $529,237 $657,900 $128,663 24% ($4,300) -1%
Expenses
Total $14,886,976 $14,504,548 $14,222,651 $15,106,596 $15,520,408 $413,812 3% $1,297,757 9%
*Reallocated
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
Personnel Re uirements
IFY 2017-18
Regular Status Employees Year-End FY 2018-19 FY 2019-20
Actual
Administrative Assistant 2.0 2.0 2.0
Administrative Services Supervisor 1.0 1.0 1.0
Control Systems Engineer 1.0 2.0 0.0
Control Systems Technician 1.0 1.0 1.0
Deputy General Manager 1.0 1.0 1.0
Plant Operations Division Manager 1.0 1.0 1.0
Plant Operations Superintendent 1.0 1.0 1.0
Plant Operations Training Coordinator 1.0 1.0 1.0
Plant Operator 1/11 3.0 4.0 4.0
Plant Operator 111 1.0 1.0 1.0
Senior Engineer 1.0 1.0 1.0
Senior Plant Operator 16.0 16.0 16.0
Shift Supervisor 7.0 7.0 7.0
Utility Systems Engineer 0.0 0.0 2.0
Total 37.0 39.0 39.0
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EmployeesFY 2017-18
Limited Duration
Actual
Summer Engineering Assistant 0.0 1.0 1.0
Total 0.0 1.0 1.0
Significant Budget Modifications
The Plant Operations Operating Budget for FY 2019-20 is $15.5 million, a $1.3 million or 9% increase
over the $14.2 million budgeted in FY 2018-19. Salaries & Wages include the agency-wide
cost-of-living adjustment increases due to step advancements, and the addition of a General Manager
Transitional Position for a Shift Supervisor. Benefits increased due to higher premiums for workers'
compensation, offset by lower premiums for the new medical plans. Chemicals increased due to a
polymer price increase following contract rebid. Hauling & Disposal increased due to diesel fuel costs.
This Plant Operations Budget provides Central San staff the resources necessary to continue to meet or
exceed evolving regulatory requirements and optimize operations to work cost effectively.
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Safety Program
OVERVIEW
The Safety workgroup oversees and administers Central San's Safety Program. The primary objective
of the program is to reduce injuries, accidents, and environmental impact while ensuring compliance.
This is achieved through high-quality training for staff; comprehensive workplace evaluation; incident
response; hazardous materials management from acquisition to disposal; and management of
regulatory information.
FY 2018-19 Strategic Accomplishments
GOAL TWO Strive to meet regulatory requirements
t j • Updated the Chemical Hygiene Plan Safety Directive.
• Began overseeing the Medical Surveillance Program.
■ • ■ Develop and retain a highly trained and innovative workforce
t � • Conducted 326 Safety Tailgates to train various divisions on safety topics.
• Administration and Engineering Departments completed calendar year 2018 with zero
Lost Work Days.
GOAL FIVE Maintain a reliable infrastructure
• • Spearheaded Fire System, Gas Detection System, and Fall Protection safety upgrades.
• Created a new maintenance access road to the clearwell overflow structure.
• Responded quickly to open action items within the District Safety Committee (the
current timeframe for an open action item is less than 60 days).
• Safety Committee reviewed 22 Safety Suggestions in calendar year 2018.
• Conducted 16 Contractor Safety Orientations, reviewed 109 Design and Safety
Submittals, and attended 42 Construction Progress Meetings.
GOAL SIX Embrace technology, innovation,and environmental sustainability
• Conducted chemical inventory and reconciled safety data sheets with online repository,
MSDSonline°.
FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of ■
<7.4 <6.8
(Bureau of (Bureau of
Injury Labor Statistics' Labor Statistics'® Employee
and Illness Lost California 4.1 California 7.5 Jg;
Time Incident Rate Sewage Sewage
Treatment Treatment
Facilities Rate) Facilities Rate)
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FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective for FY 2019-20
Continue improving customer service through the following:
• Increased visibility in contractor project oversight/design reviews.
Foster Employee • Participation in a greater number of tailgate meetings.
Engagement and 0 Attendance at additional manager and departmental meetings.
Interdepartmental 0 Inspections at more job worksites and facilities.
Collaboration
4r190_1)'
.� Implement on-boarding protocols that identify required training, medical evaluations,and
Vii; testing for each job classification.
Ensure Adequate
Staffing and Training
to Meet Current and Continue monitoring safety metrics, including both leading and lagging indicators,to
Future Operational identify trends in incident reports,first-aids-only, near misses, and inspection findings.
Levels
ffi
Enhance the Safety Transition to the Target Solutions°online platform to improve efficiency and compliance with
Culture through online trainings, records retention,and tracking of certifications.
Improved Training
and Communications
Budget Overview by Exj2ense Cate ory
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& $364,050 $310,597 $353,959 $261,800 $306,293 $44,493 17% ($47,666) -13%
Wages
Employee $317,020 $286,845 $141,539 $162,085 $107,294 ($54,791) -34% ($34,245) -24%
Benefits
Unfunded $0 $0 $118,777 $118,302 $99,974 ($18,328) -15% ($18,803) -16%
Liabilities
Repairs& $73,500 $37,265 $74,700 $74,700 $74,700 $0 0% $0 0/
°
Maintenance
Hauling& $10,250 $8,492 $10,250 $8,250 $8,250 $0 0% ($2,000) -20%
Disposal
Professional& $2,500 $0 $2,500 $0 $2,500 $2,500 100% $0 0/
°
Legal Services
Outside $68,000 $13,552 $61,000 $41,000 $61,000 $20,000 49% $0 0/
°
Services
Materials& $27,500 $21,253 $28,100 $28,050 $28,100 $50 0% $0 0/
°
Supplies
Other $54,075 $39,664 $56,600 $52,250 $61,050 $8,800 17% $4,450 8%
Expenses
Total $916,895 $717,669 $847,425 $746,437 $749,161 $2,724 0% ($98,264) -12%
* Unfunded Liabilities were broken out in FY 2018-19 and included in Employee Benefits line item in prior years.
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Personnel Requirements
EmployeesFY 2017-18
11111111111111111111WRegL lar Status
Actual
Operations Safety Specialist 1.0 2.0 2.0
Safety Officer 1.0 1.0 1.0
Total 2.0 3.0 3.0
Significant Budget Modifications
The Safety Program Operating Budget for FY 2019-20 is $700,000, a $100,000 or 12% decrease over the
$800,000 budget in FY 2018-19. Salaries & Wages include the agency-wide cost-of-living adjustment,
offset by budgeting one vacant position for six months. The decrease in Benefits is due to lower
premiums for the new medical plans. There are only minor adjustments to other expense categories.
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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 to supplement the region's water supply. Central San began
to separately track the Recycled Water Program financials in FY 2016-17, and 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 through pipelines, construction contractors through hydrants,
and residential customers through the Residential Fill Station operated out of the Household
Hazardous Waste Collection Facility. This program also includes planning and regulatory support for
the existing system and planned expansions, including the Refinery Recycled Water Exchange Project
and the Concord Community Reuse Project.
FY 2018-19 Strategic Accomplishments
+ Embrace technology, innovation,and environmental sustainability
• Collaborated with Contra Costa Water District and Santa Clara Valley Water District to
+ complete the Work Plan tasks as agreed upon in the Memorandum of Understanding to
complete a Preliminary Feasibility Evaluation of the Refinery Recycled Water Exchange
Project.
• Collaborated with Dublin San Ramon Services District—East Bay Municipal Utility
District Recycled Water Authority(DERWA)to define a project and develop and execute
a Temporary Wastewater Diversion Agreement to allow DERWA to divert
approximately 1.3 MGD of raw wastewater from Central San's San Ramon Pumping
Station to Dublin San Ramon Services District for the production of recycled water to
meet DERWA's peak summer irrigation demand.
• Distributed 1.5 million gallons of recycled water through the Residential Fill Station.
FYs 2017-18 and 2018-19 Strategic Performance and FY 2019-20 Targets
FY 2017-18 FY 2017-18 FY 2018-19/ FY 2018-19
Goal Metric Target Performance FY • • Performance
Target as of •
Recycled Water Title 22 Zero(0) Zero(0) qr Zero(0) Zero(0) ,�r
Compliance Violations Violations ` ' Violations Violations
Total Gallons of Water >240,000,00 219,093,357 f r >240,000,000 124,040,000 ���
Distributed to External 0 Gallons Gallons ` Gallons Gallons ` rr
Customers
Gallons of Recycled N/A
Water Distributed at >14,000,000 2,447,911
Not a Metric in the
the Residential Fill Gallons Gallons
FY 2018-20 Strategic Plan
Station
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FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19
Goal Metric Target Performance FY 2019-20 Performance
Target as of •
Gallons of Recycled
Water Distributed by >4,000,000 796,338 J�� N/A
the Commercial Truck Gallons Gallons i r Not Metric in the
FY 2018-20 Strategic Plan)
Fill Program
Maximum Residential
Recycled Water Fill . . N/A
Station Customer Wait 15 Minutes <15 Minutes � ; Not a Metric in the
FY 2018-20 Strategic Plan
Time
FY 2019-20 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective
Continue to support the development of a demonstration Satellite Water Recycling
Facility at Diablo Country Club as needed.
Continue working with Contra Costa Water District and Santa Clara Valley Water District
to advance the Refinery Recycled Water Exchange Project.
Augment the Continue working with DERWA and its representatives to approve a project design,
Region's Water complete community outreach,and inspect and accept the construction of a new
Supply diversion box to allow the temporary diversion of approximately 1.3 MGD of raw
wastewater from Central San to Dublin San Ramon Services District for the production of
recycled water to meet DERWA's peak summer irrigation demand.
Budget Overview by Expense Category
Treatment
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& $228,440 $167,989 $225,100 $223,400 $173,200 ($50,200) -22% ($51,900) -23%
Wages
Employee $231,580 $159,297 $213,900 $212,300 $143,800 ($68,500) -32% ($70,100) -33%
Benefits*
Chemicals $84,000 $69,062 $84,000 $94,000 $100,000 $6,000 6% $16,000 19%
Utilities $175,000 $169,408 $175,000 $175,000 $175,000 $0 1 0% $0 0%
Repairs& $6,000 $0 $6,000 $6,000 $6,000 $0 0% $0 0/
°
Maintenance
Outside $500 $0 $500 $500 $500 $0 0% $0 0/°
Services
Materials& $1,000 $286 $1,000 $1,000 $1,000 $0 0% $0 0/
°
Supplies
Other $6,600 $6,836 $6,600 $6,600 $28,200 $21,600 327% $21,600 327%
Expenses
Total $733,120 $572,878 $712,100 $718,800 $627,700 ($91,100) -13% ($84,400) -125,6
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Distribution
(Including Distribution, Residential Fill Station, Satellite Water Recycling Facility, and
Refinery Recycled Water Excban e
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Salaries& $188,650 $223,994 $340,500 $197,000 $399,300 $202,300 103% $58,800 17%
Wages
Employee $102,948 $141,155 $211,344 $131,897 $275,398 $143,501 109% $64,054 30%
Benefits*
Repairs& $23,000 $4,911 $23,000 $23,000 $23,000 $0 0% $0 0/
Maintenance
Professional& $14,000 ($12,395) $14,000 $31,136 $14,000 ($17,136) -55% $0 0%
°
Legal Services
Outside $202,000 $55,303 $214,000 $172,000 $245,000 $73,000 42% $31,000 14%
Services
Materials& $4,900 $391 $10,900 $25,000 $17,900 ($7,100) -28% $7,000 64%
Supplies
Other $50,024 $37,521 $26,950 $23,400 $6,050 ($17,350) -74% ($20,900) -78%
Expenses
Total $585,522 $450,880 $840,694 $603,433 $980,648 $377,215 63% $139,954 17%
* Unfunded Liabilities are included in the Employee Benefits line item for Recycled Water.
Total Recycled Water
Account FY 2017-18 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto % Budgetto %
Description Budget Actual Budget Projected Budget Projected Variance Budget Variance
Variance Variance
Total Recycled
Water $1,318,642 $1,023,758 $1,552,794 $1,322,233 $1,608,348 $286,115 22% $55,554 4%
Expenses
Personnel Requirements
Several divisions support the Recycled Water Program. Personnel for the Recycled Water Program are
shown in their respective divisions and total 2.7 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.
IFY 2017-18
Regular Status Employees Year-End IFY 2018-19 IFY 2019-20
Actual
Program Manager 0.5 0.5 0.5
Engineering and Technical Services Department Staff 0.7 0.9 0.9
Operations Department Staff 1.2 1.3 1.3
Total 2.4 2.7 2.7
FY 2017-18
Limited Duration Employees Year-End IFY 2018-19 FY 2019-20
Actual
Fill Station Temporary 8.0 3.0 3.0
Intern 0.0 1.0 0.0
Total 8.0 4.0 3.0
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Significant Budget Modifications
The Recycled Water Program Operating Budget for FY 2019-20 is $1.6 million, which remained
essentially flat compared to the $1.6 million budget in FY 2018-19. Utilities increased due to rising
electrical expense in the treatment plant. Outside Services increased due to the need for technical
services for process support services. Materials & Supplies increased due to meter replacements and
in-house repair supplies.
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 arid 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.
Financial Summary for Recycled Water Program
Recycled Water FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto %
BudgetExpense Summary Actual Budget Projected
Variance
Treatment Plant O&M $572,878 $712,100 $718,800 $627,700 ($84,400) -12%
Treatment Plant Capital $1,280,926 $2,757,000 $2,757,000 $8,180,000 $5,423,000 197%
Distribution O&M $450,880 $840,694 $603,433 $980,648 $139,954 17%
Distribution Capital $28,828 $100,000 $145,000 $111,500 $11,500 12%
Total Combined
Expense $2,333,512 $4,409,794 $4,224,233 $9,899,848 $5,490,054 213%
BudgetRecycled Water FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20 Budgetto %
Revenue Summary Actual Budget Projected
Variance
Treatment Plant $457,309 $1,455,207 $1,457,148 $2,193,766 $738,559 51%
(Value Not Charged)
Zone 1 Revenue $377,000 $420,000 $420,000 $420,000 $0 0%
Residential Fill
(Value Not Charged) $83,308 $232,185 $229,122 $268,156 $35,971 15%
Satellite
Reimbursement $32,242 $81,700 $81,700 $144,700 $63,000 77%
City of Concord
Reimbursement $478,973 $1,289,671 $1,289,671 $1,659,923 $370,252 29%
Total Combined $1,428,832 $3,478,763 $3,477,641 $4,686,545 $1,207,782 172%
Revenue
Regarding the FY 2019-20 Budget Revenue figures noted above, the $420,000 Zone 1 Revenue is
entirely allocated to O&M (see Table 5 in Financial Summary). The $1,659,923 City of Concord
Reimbursement is contained within the $14,570,000 for O&M (see Table 5 in Financial Summary) and
$11,630,000 for Capital (see Table 11 in Financial Summary). The $144,700 Satellite Reimbursement is
contained within the $337,000 Other Revenues (see Table 5 in Financial Summary).
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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 2019-20
SIF Budget. The SIF revenue for FY 2019-20 is projected to be $1,025,900, and expenses are projected
to be $1,073,700, resulting in net SIF reserves of$7,197,741. The budgeted revenues include the
allocation of$825,000 from the FY 2019-20 Operations and Maintenance (O&M) Fund to the SIF.
Sub-Fund A:Actuarially-Based Risks
Sub-Fund A is used to pay general liability and auto liability claims and expenses within Central San's
self-insured liability retention. Claims in excess of this retention are covered by a liability 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 September 2018. The next actuarial report will be performed in
August 2020 using loss data through June 30, 2020.
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 2019-20 of$41,500 with expenses of$400,000, for a decrease
of$358,500. This amount will be transferred from Sub-Fund C in order to maintain the minimum
reserve at $1.5 million.
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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
Sub-Fund C has historically covered the 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 2019-20 of$984,400, which includes a transfer from the
0&M Fund.
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Table 1 - SIF Summary Overview
Budgetm -1 1 FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20
EMPEIMnt Description mr Actual Budget Projected
Revenues
SIF Allocation from O&M Fund $585,000 $779,500 $779,500 $825,000
Insurance Allocation from Household Hazardous Waste $19,679 $65,000 $20,000 $21,000
Subrogation Recovery $516,493 $0 $0 $0
Interest Income $91,898 $115,750 $163,200 $179,900
Total Revenue $1,213,069 $960,250 $962,700 $1,025,900
Expenditures
Claims Adjusting $0 $0 $0 $2,000
Insurance Consulting $0 $6,500 $5,000 $0
Loss Payments $173,757 $253,000 $167,500 $275,000
Losses:Audit Adjustment for GASB-10 ($75,151) $0 $0 $0
Legal Services $8,058 $20,000 $80,000 $80,000
Technical Services $67,171 $75,000 $40,000 $85,000
Insurance Premiums $539,703 $570,000 $570,000 $631,700
Total Expenses $713,538 $924,500 $862,500 $1,073,700
Revenue Over Expense $499,531 $35,750 $100,200 ($47,800)
Projected Reserves*
Beginning of Year $6,645,809 $6,700,026 $7,145,340 $7,245,540
Reserve Policy Transfer $0 $0 $0 $0
Revenue over Expense $499,531 $35,750 $100,200 ($47,800)
End of Year Projected Reserves $7,145,340 $6,735,776 $7,245,540 $7,197,740
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(Fund C) $5,645,341 $5,235,776 $5,745,541 $5,697,741
Total Allocated Reserves $7,145,341 $6,735,776 $7,245,541 $7,197,741
*Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting
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Table 2 — SIF— Sub-Fund A
Account Description IFY 2017-18 IFY 2018-19 FY 2018-19 IFY 2019-20
Actual Budget Projected Budget
Projected Reserves-Beginning of Year $1,500,000 $1,500,000 $1,500,000 $1,500,000
Revenues
0&M $0 $0 $0 $0
Subrogation Recovery $0 $0 $0 $0
Interest $21,191 $26,712 $37,100 $41,500
Total Revenue $21,191 $26,712 $37,100 $41,500
Expenses
Losses $168,746 $250,000 $150,000 $250,000
Losses:Audit Adjustment for GASB-10 ($75,151) $0 $0 $0
Legal Services $9,459 $20,000 $75,000 $75,000
Technical $67,171 $75,000 $30,000 $75,000
Total Expenses $170,225 $345,000 $255,000 $400,000
Revenue Over Expense ($149,034) ($318,288) ($217,900) ($358,500)
Projected Reserves*
Transfer(to)/from Sub-Fund C $149,033 $318,288 $217,900 $358,500
Reserve Increase Transfer from Fund C $0 $0 $0 $0
Total Reserves Projected End of Year $1,500,000 $1500,000 $15001000 $1,500,000
* Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting
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Table 3 - SIF - Sub-Fund C
Budgetunt Description FY 2017-18 FY 2018-19 FY 2018-19 FY 2019-20
1w 1w Actual ,.
Beginning Reserves $5,145,809 $5,200,026 $5,645,341 $5,745,541
Revenues
0&M $585,000 $779,500 $779,500 $825,000
Subrogation Recovery $516,493 $0 $0 $0
Insurance Recovery from Household Hazardous Waste
$19,679 $65,000 $20,000 $21,000
Partners
Interest $70,707 $89,038 $126,100 $138,400
Total Revenue $1,191,878 $933,538 $925,600 $984,400
Expenses
Losses $5,011 $3,000 $17,500 $25,000
Legal -$1,401 $0 $5,000 $5,000
Technical $0 $0 $10,000 $10,000
Insurance Premiums $539,703 $570,000 $570,000 $631,700
Insurance Consulting Services $0 $6,500 $5,000 $0
Claims Adjustment $0 $0 $0 $2,000
Total Expenses $543,313 $579,500 $607,500 $673,700
Revenue Over Expense $648,565 $354,038 $318,100 $310,700
Projected Reserves
Transfer(to)/from Sub-Fund A ($149,033) ($318,288) ($217,900) ($358,500)
Transfer(to)/from Sub-Fund B $0 $0 $0 $0
Reserve Increase to Sub-Fund A
(Audit Adjustment for GASB-10) $0 $0 $0 $0
Reserve Policy Transfers $0 $0 $0 $0
Total Reserves Projected End of Year $5,645,341 $5,235,776 $5,745,541 $5,697,741
* Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting
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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
$0 own own 0
FY 2017-18 Actual FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Budget
■Total Revenue WTotal Expenses oTotal 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 2017-18 Actual FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Budget
N Loss Payments ■Insurance Premiums
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Figure 3 - Reserves by Sub-Fund
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FY 2017-18 Actual FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Budget
O Allocated Reserves-GASB 10(Fund A) Y 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 2017-18 Actual FY 2018-19 Budget FY 2018-19 Projected FY 2019-20 Budget
N Allocated Reserves-GASB 10(Fund A) Y Allocated Reserves-GASB 10(Fund C)
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Capital Improvement Program
OVERVIEW
Central San funds an extensive Capital Improvement Program (CIP) 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 CIP.
Capital Improvement Program Process
Annually, Central San updates its Ten-Year Capital Improvement Plan (Ten-Year 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
Ten-Year CIP beginning on July 1 and ending on June 30, referred to as a fiscal year. Since most 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 second CIB also includes two types of contingency funding
of capital projects. The first project contingency is determined at the time of award of any project. 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 of Directors (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 Revenue
The CIP 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. This is anticipated for FY
2020-21.
CIB Project Prioritization
The projects included in the FY 2019-20 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
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
Criteria Category: Project Benefits
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 Improvement-
Criteria Category:
Operational
Consistent with Asset Management Program
Improves Reliability and System Performance
Improves Facility-Wide Resiliency
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Capital Improvement Budget FY 2018-19 Accomplishments
Sewer Replacement: Several projects have replaced or rehabilitated approximately 31,700 feet
(6.0 miles) of sewers, most of which were 6-inch vitrified clay pipes in poor condition. Construction
included sewer replacement, new manholes, and other infrastructure improvements in public
right-of-way and backyard easements. Trenchless technology was utilized where possible for cost
effectiveness and to minimize construction impacts. Central San staff also designed and bid
approximately 32,000 feet (6.0 miles) of sewer replacement this fiscal year and coordinated the
projects with city paving programs and other utilities throughout the service area.
M :•
_ r�aAi
Sewer Replacement in a Residential Neighborhood and Creek Crossing
Regulatory and Safety Projects: One of the major regulatory challenges facing Central San concerns
the air pollution control equipment on the existing furnaces at the wastewater treatment plant. The
Solids Handling Facility Improvements Project will replace this equipment to meet current and future
regulatory needs. In addition, this project will include structural modifications to the building,
furnaces, and electrical bracing to meet current seismic standards. The final design is underway with
design completion expected by 2020.
i�4 _.- r
- Y
3-D Model Rendition of the Solids Handling Facility Improvements Project
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Safety projects included the completion of the Pump and Blower Building Seismic Upgrade and the
start of the Plant Operations Building (POB) Seismic Upgrades construction, both projects provide for
employee safety while including improvements to ensure reliability of critical facilities that process
wastewater.
Infrastructure Replacement: The main emphasis of the CIP is replacing deteriorated infrastructure.
Last fiscal year, several projects were initiated in design or construction and included the following
major efforts:
• Mechanical and Concrete Renovations: This construction project is focused on replacing critical
gates, mechanical systems, and rehabilitating concrete structures at the wastewater treatment
plant. In addition, this project will rehabilitate the odor control towers and associated electrical for
two critical process areas (Headworks and Primary Sedimentation).
• Pumping Station Upgrades— Phase 1: Final design is ongoing for needed electrical and mechanical
equipment replacement at the Moraga, Orinda Crossroads, and Flush Kleen Pumping Stations.
Planning efforts for Phase 2 including Martinez, Maltby, and Fairview Pumping Stations will
continue into the next fiscal year.
• Filter Plant and Clearwell Improvements— Phase 1A:The preliminary design is complete, and the
recommended project includes replacement of deteriorated electrical infrastructure at the Clearwell,
new pumps, recycled water storage improvements, and filter system modifications. The final design will
continue this fiscal year. Other improvements will be accomplished under future phases.
• Steam and Aeration Blower Systems Renovation: Condition assessments are underway for the steam
and heat recovery systems at the treatment plant and several other areas in the aeration system,
including the blowers, will be evaluated this fiscal year. This project also includes evaluation of the plant
electrical systems. The planning of this project will continue into next year.
• Projects completed: Several projects are either at the substantial completion or close out phase of
construction,these include the Pump and Blower Building Seismic Upgrade (Closed), Plant Energy
Optimization (Closed), Equipment Replacement (Closed), Headworks Screenings Upgrade
(Substantial Completion), Piping Renovation— Phase 9 (Substantial Completion), and Recycled Water
Clearwell Repairs (Substantial Completion). All of which replaced or protected critical infrastructure to
allow Central San to continue to effectively collect, treat and process wastewater, and deliver recycled
water in compliance with all recycling requirements.
Rehabilitating the odor control tower under the New portable water tank installed
Mechanical and Concrete Project Piping Renovation—Phase 9
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FY 2019-20 Capital Improvement Budget
The FY 2019-20 CIB for ongoing and new projects is $66.2 million. The estimated budget needed to
complete these projects in future fiscal years is at $335.4 million. Combined, the total estimated
budget to complete the identified projects in the FY 2019-20 CIB is $401.5 million. The 2019 Ten-Year
CIP is projected to be $867.2 million as shown below in Table 1:
Table 1 - FY 2019-20 CIB per Program
Future FYs Under Total Estimated FY 2019
Program FY 2019-20 i Budget to Complete Ten Year CIP
(1) CIB Projects Active Projects Comparison
Collection System $27,129,000 $97,770,000 $124,899,000 $349,511,000
Treatment Plant $28,631,000 $188,522,000 $217,153,000 $413,202,000
General Improvements $4,264,000 $10,400,000 $14,664,000 $24,893,000
Recycled Water $4,152,000 $28,717,000 $32,869,000 $55,119,000
Contingency $2,000,000 $10,000,000 $12,000,000 $24,500,000
Totals: $66,176,000 $335,409,000 $401,585,000 $867,225,000
FY 2018-19 Capital Improvement Budget Construction Commitments
As of April 30, 2019, the total construction commitments authorized by the Board in FY 2018-19
is $55.8 million. This includes all construction contracts, purchase orders, construction management,
and supporting services to complete the construction phase within the CIB.
Sewer Construction Budget.
Commitments and Capacity
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FY 2019-20 Capital Improvement Budget 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 2019-20, the emphasis will be on
thirteen large projects (those projects over$1.5 million), which together account for$51.1 million or
77% of the total CIB for the year. Each major project budget is shown below:
Improvements!1. Solids Handling Facility
Y 2019-20 Budget:$6,550,000 Estimated total project cost: $93,376,000
F
Estimated completion date: FY 2023-24
FY 2019-20 Budget: $6,400,000 Estimated total project cost: $14,047,000
Estimated completion date: FY 2020-21
3. Pumping Station Upgrades—Phase 1 V
FY 2019-20 Budget: $4,600,000 Estimated total project cost: $27,850,000
Estimated completion date: FY 2022-23
WO IM 10M A
FY 2019-20 Budget: $3,817,000 Estimated total project cost: $4,317,000
Estimated completion date: December 2019
FY 270197207Budget: $3,621,000Estimated total project cost: $4,121,000
FY 2019 20 Budget: $3,621,000 Estimated completion date: December 2019
6. South •
FY 2019-20 Budget: $3,637,000 Estimated total project cost: $4,137,000
Estimated completion date: December 2019
Danville7.
Estimated total project cost: $4,600,000
FY 2019-20 Budget: $4,100,000
Estimated completion date: November 2020
8. Collection System Sewer Renovation—Phase I
Estimated total project cost: $42,579,527
FY 2019-20 Budget: $4,473,000
Estimated completion date: FY 2021-22
ir
ell lTrorov--
FY 2019-20 Budget: $3,452,000 Estimated total project cost: $33,000,000
Estimated completion date: FY 2023-24
FY 2019-20 Budget: $2,000,000 Estimated total project cost: $4,000,000
Estimated completion date: FY 2021-22
1-11. Steam and Aeration Blower Systems Renovations
FY 2019-20 Budget: $3,500,000 Estimated total project cost: $62,000,000
Estimated completion date: FY 2026-27
12. POB Seismic Upgrades
FY 2019-20 Budget: $2,793,000 Estimated total project cost: $6,124,177
Estimated completion date: February 2020
structure Replacement
Estimated total project cost: $32,800,000
FY 2019-20 Budget: $2,200,000 Estimated completion date: FY 2029-30
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Capital Improvement Budget Modifications
Changes to projects do occur and include rescheduling, consolidation, phasing, modification of scope,
and renaming of projects since last fiscal year and include:
Consolidation or Phasing of Existing Projects:
• The Piping Renovation — Phase 9, District Project 7330, scope and budget was combined with
the Treatment Plant Urgent Repairs, District Project 7314, and the Water System Upgrades.
• 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.
• The Collection System Sewer Renovation — Phase 1 project has been split to fund the
construction of the Walnut Creek Sewer Renovation — Phase 13, Lafayette Sewer Renovation —
Phase 13, South Orinda Sewer Renovation — Phase 7, and Danville Sewer Renovation — Phase 3
as planned and within budget.
• The Plant Control System Network Upgrades was combined with the Programmable Logic
Control Systems Upgrade and Information Technology (IT) Development for related fiber work
at the Martinez campus for bidding and construction.
• The POB Seismic project was combined with the Property and Building Improvements to fund
the tenant improvements and other related items at the Operations building. The Property
and Building Improvement has been closed.
• The Cyber Security was closed and consolidated into the IT Development Project.
• The ERP Replacement was separated from the IT Development Project and is now be tracked
under a new project number.
• The Filter Plant & Clearwell Improvements will include Phase 1A.
Modification of Scope and Budget:
• The Mechanical and Concrete Renovations Project includes scope from the Odor Control
Upgrades— Phase 1 and the Outfall Improvements— Phase 7 Projects. The budgets for these
projects have been updated to reflect the changes.
• The Furnace Burner Upgrades Project has been closed and scope and budget has been
included in the Solids Handling Facility Improvements.
• The Filter Plant & Clearwell Improvements scope and budget changed significantly and has
been split into two phases, 1A and 1B. Phase 113 is included in the Ten-Year CIP.
• The development sewerage support incudes the new scope and budget to cover the
capitalization of the developer inspection.
Renaming Projects:
• The Energy Recovery and Blower Replacement Project has been renamed "Steam and Aeration
Blower Systems Renovations."
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California Environmental Quality Act (CEQA) Compliance
The CIB is exempt from CEQA because it is a planning study (Central San CEQA Guidelines
Section 15262). Some projects included in the 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 CIB projects 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. The following table presents the CEQA
compliance status of projects for which staff is requesting an authorization of Sewer Construction
Funds. The anticipated types of CEQA documentation 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: Staff will direct preparation of an Environmental Impact Report.
Board consideration of approval of the project would follow certification of the Environmental
Impact Report.
• CEQA Documents Completed: For these projects, CEQA compliance has already been achieved
through documents previously prepared and approved.
CEQA Compliance Summary for FY 2019-20
Exemption • Document Required
COLLECTION SYSTEM PROGRAM
5991 Pleasant Hill Sewer Renovation—Phase 2 X
6534 Harper Lane Contractual Assessment District X
6679 Cordell Drive Contractual Assessment District X
8419 Collection System Planning X
8436 Pumping 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
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—Phase 1 X
8452 Lafayette Sewer Renovation—Phase 13 X
8454 South Orinda Sewer Renovation—Phase 7 X
8455 Walnut Creek Sewer Renovation—Phase 13 X
8456 Danville Sewer Renovation—Phase 3 X
Planning is exempt; more information is
8457 Pumping Stations Upgrades—Phase 2 X needed on future aspects of this project to
determine appropriate CEQA documentation.
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Program/Project Exemption CEQA Document Required
TREATMENT PLANT PROGRAM
7292 Switchgear Refurbishment—Phase 2 X
7304 Programmable Logic Controller Systems Upgrades X
7315 Applied Research and Innovations X
7317 Plant Control System Network Upgrades X
7322 Fire Protection System—Phase 2 X
7327 Headworks Screenings Upgrade X
7328 Influent Pump Electrical Improvements X
7329 Furnace Burner Upgrades X
7330 Piping Renovation—Phase 9 X
7339 Plant Control System 1/0 Replacement X
Contra Costa County Flood Control and Water
Conservation District will be the Lead Agency
7341 Walnut Creek/Grayson Creek Levee Rehab and will determine appropriate CEQA
documentation.
7348 Solids Handling Facility Improvements X
Planning is exempt; more information is
7349 Steam and Aeration Blower Systems Renovations X needed on future aspects of this project to
determine appropriate CEQA documentation.
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
7359 Solids Conditioning Building Roof Replacement X
7360 Existing Plant Facilities As-Is Drawings X
7362 POB Seismic Upgrades X
7363 Treatment Plant Planning X
7364 Treatment Plant Safety Enhancement—Phase 5 X
7369 Piping Renovation—Phase 10 X
7370 Annual Infrastructure Replacement X
Planning is exempt; more information is
7371 Condition Assessment of Buried Pipelines X needed on future aspects of this project to
determine appropriate CEQA documentation.
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Program/Project Exemption CEQA Document Required
GENERAL IMPROVEMENTS PROGRAM
8207 General Security and Access X
8230 Capital Legal Services X
8236 District Easement Acquisition X
8240 IT Development X
8243 Server Room Relocation X
8516 Equipment Acquisition X
8517 Vehicle Replacement Program X
8249 CSO Dump Pad X
8250 ERP Replacement X
RECYCLED WATER PROGRAM
7306 Zone 1 Recycled Water X
7346 Recycled Water Distribution System Surge Analysis X
7361 Filter Plant and Clearwell Improvements—Phase 1A X
7365 Recycled Water Clearwell Repairs X
7366 Recycled Water Distribution System Renovations X
Program
7368 Water Exchange Project X
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Capital Improvement Budget - Collection System Program
The following are the major points of emphasis for the FY 2019-20 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 maintenance records including overflows and stoppages;
• The Pumping Station Inventory Update, which identifies necessary reliability improvements;
• Preliminary Design Report for the renovation and upgrades at six major pumping stations;
• Collection System Master Plan, which identifies 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 Improvement 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:
Project Example of Project Driver(s)
Each project is described on the following pages. Each
project summary includes project name, description,
Aging Infrastructure capacity prioritization, purpose, 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
highlighting in yellow background color and bold text.
Regulatory Sustainability Driver(s) that is (are) not as significant or not relevant is
(are) displayed in gray.
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CIB Table 2 - FY 2019-20 Collection System Program Budget/Project Summary
Project Project Budget-to- FY 2019-20 FY 2020-21 Future FYs Total Project
Number Date Cost
5991 Pleasant Hill Sewer $460,000 $0 $1,500,000 $1,000,000 $2,960,000
Renovation-Phase 2
6534 Harper Lane Computer $800,000 $0 $0 $0 $800,000
Aided Design
6679 Cordell Drive Computer $123,443 $0 $0 $0 $123,443
Aided Design
8419 Collection System Planning $985,000 $200,000 $200,000 $400,000 $1,785,000
8436 Pumping Station $3,747,000 $4,600,000 $12,500,000 $7,003,000 $27,850,000
Upgrades-Phase 1
8441 Cured-in-Place Pipe $400,000 $200,000 $0 $0 $600,000
Contract 2017-2020
Pumping Station
8442 Equipment and Piping $61,000 $103,000 $200,000 $400,000 $764,000
Replacement-Phase 2
8443 Large Diameter Pipeline $250,000 $515,000 $530,000 $530,000 $1,825,000
Inspection Program
8444 Force Main Inspection $125,000 $0 $300,000 $1,500,000 $1,925,000
Program
8447 Pumping Station Security $156,000 $51,000 $53,000 $318,000 $578,000
Improvements
8448 Manhole Modifications $700,000 $309,000 $320,000 $960,000 $2,289,000
8449 Collection System $200,000 $103,000 $106,000 $106,000 $515,000
Modeling Support
8450 Development Sewerage $1,130,000 $900,000 $900,000 $5,400,000 $8,330,000
Support
8451 Collection System Sewer $462,527 $4,473,000 $18,103,000 $19,541,000 $42,579,527
Renovation-Phase 1
8452* Lafayette Sewer $500,000 $3,817,000 $0 $0 $4,317,000
Renovation-Phase 13
8454* South Orinda Sewer $500,000 $3,637,000 $0 $0 $4,137,000
Renovation-Phase 7
8455* Walnut Creek Sewer $500,000 $3,621,000 $0 $0 $4,121,000
Renovation-Phase 13
8456* Danville Sewer $500,000 $4,100,000 $0 $0 $4,600,000
Renovation-Phase 3
8457 Pumping Stations $50,000 $500,000 $900,000 $25,000,000 $26,450,000
Upgrades-Phase 2
Total Program $11,649,970 $27,129,000 $35,612,000 $62,158,000 $136,548,970
*New project in FY 2019-20
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Pleasant Hill Sewer Renovation — Phase 2 — District Project 5991
Program Phase Priority Rank Ranking Score
Collection System Design Very High 60
Purpose:
To replace and renovate small diameter sewers within the Project
City of Pleasant Hill. Aging
Infrastructure Capacity
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 lives
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%of the dry weather sanitary sewer overflows --
(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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $183,000 $0 $0 $0 $183,000
Design $277,000 $0 $250,000 $0 $527,000
Construction $0 $0 $1,250,000 $1,000,000 $2,250,000
FY Total $460,000 $0 $1,500,000 $1,000,000 $2,960,000
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Harper Lane Contractual Assessment District- District Project 6534
Program Phase Priority Rank Ranking Score
Collection System Construction Board Approved N/A
Purpose: Project Drivers
To provide a financing mechanism for the extension of public
sewers into areas that are current) served b septic tanks, Aging
y y p Infrastructure Capacity
referred to as Contractual Assessment Districts (CADs).
Drivers: Regulatory Sustainability
In certain instances, the cost to extend public sewers into an area
serviced by septic tanks can be an extreme financial burden for
one owner or even a small group of owners. Central San
developed the CAD Program to address this financial burden.
The CAD process provides a means to finance the cost of sewer 0
DE-A-
improvements over time at a fixed interest rate. The CAD -
assessments are placed on the customers' property tax bills each
year until the entire amount is reimbursed to Central San. Each ° * ,
CAD is presented to the Board of Directors for approval.
Description:
The Harper Lane Area CAD in the Town of Danville will install up .°$
t -
to 2,775 feet of 8-inch sewer and infrastructure to serve up to
34 properties. This is a cost neutral project offset by property '
owners. Nt-iel P-dp-
-Exietlrig Sewer
N Paenral sewer
CAD 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 and repaid by the CAD participants.
Location(s):Town of Danville
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $800,000 $0 $0 $0 $800,000
FY Total $800,000 $0 $0 $0 $800,000
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Cordell Drive Contractual Assessment District- District Project 6679
IPriority Rank Ranking Score
Collection System Construction Board Approved N/A
Purpose: Project Drivers
To provide a financing mechanism for the extension of public
sewers into areas that are current) served b septic tanks, Aging
y y p Infrastructure Capacity
referred 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.
x
Description:
The Cordell Drive CAD in the Town of Danville will install up to ,._ FROPDSEDSENIER
386 feet of 8-inch sewer and infrastructure to serve up to six PO1ENtiP'R"P"
BEWER
properties. This is a cost neutral project offset by 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):Town of Danville
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $123,443 $0 $0 $0 $123,443
FY Total $123,443 $0 $0 $0 $123,443
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Collection System Planning- District Project 8419
Program Phase Priority Rank Ranking Score
Collection System Planning Critical 70
Purpose: Project Drivers
To complete evaluations for upcoming regulatory requirements,
assess collection system renovation needs, evaluate sewer Aging
capacities, and investigate optimization and pilot opportunities.
Infrastructure Capacity
Drivers: Regulatory Sustainability
Central San owns and operates over 1,540 miles of sewer and
18 pumping stations. Ongoing planning and evaluations are
required to proactively address aging infrastructure, capacity -
needs, upcoming regulations, and sustainability drivers. An
f, .
InfoMaster° sewer replacement risk model is maintained by staff
to identify and prioritize sewer renovation needs. InfoWorks°
hydrodynamic model is maintained by staff to identify capacity '
deficiencies and renovation needs. 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.
Description: -The following are major elements included in the project:
• Use InfoWorks°to evaluate capacity for proposed developments, special discharge requests, sewer
renovation projects, and proposed construction shutdowns and bypasses
• Update InfoMaster°sewer risk model and long-term sewer renovation need projections to
incorporate force main and large diameter sewer inspection results to develop long-term
renovation and ongoing condition assessment strategies
• Identify and evaluate promising technologies, optimizations, and pilots applicable to collection
system and 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.
Location(s): Collection System and Pumping Stations
BudgetProject
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $985,000 $200,000 $200,000 $400,000 $1,785,000
Design $0 $0 $0 $0 $0
Construction $0 $0 $0 $0 $0
FY Total $985,000 $200,000 $200,000 $400,000 $1,785,000
150
May 16, 2019 Regular Board Meeting Agenda Packet- Page 419 of 549
Page 196 of 310
Pumping Station Upgrades - Phase 1- District Project 8436
Program Phase Priority Rank Ranking Score
Collection System Design Critical 80
Purpose:
To address aging infrastructure and reliability needs at the Moraga, Project Drivers
Flush Kleen, and Orinda Crossroads Pumping Stations. Aging Capacity
Infrastructure
Drivers:
As part of the Comprehensive Wastewater Master Plan, a Regulatory sustainability
comprehensive condition assessment of the pumping stations has
identified several structural, mechanical, electrical, and
instrumentation improvements. An Arc Flash Study has also +'s
ti.
identified several improvements required at these pumping
stations.
Description:
The following are major elements included in the project:
• Add grinder(s) at the Moraga Pumping Station T
• Construct surge tank canopy at Orinda Crossroads
Pumping Station
tJ
• Replace wet weather diesel engines driven pumps at
Moraga and Orinda Crossroads Pumping Stations with electric motors
• 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
• Coordination with the City of Orinda, Town of Moraga, and others
Operating Department Impact and Funding Source:
The impacts on the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Moraga, Flush Kleen, and Orinda Crossroads Pumping Stations
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $450,000 $0 $0 $0 $450,000
Design $3,200,000 $0 $0 $0 $3,200,000
Construction $97,000 $4,600,000 $12,500,000 $7,003,000 $24,200,000
FY Total $3,747,000 $4,600,000 $12,500,000 $7,003,000 $27,850,000
151
May 16, 2019 Regular Board Meeting Agenda Packet- Page 420 of 549
Page 197 of 310
Cured-In-Place Pie (CIPPI Contract 2017-2020 — District Project 8441
Program Phase Priority Rank Ranking Score
Collection System Construction Critical 75
Purpose: Project Drivers
Use CIPP technology to repair any urgent pipelines which require
immediate action. Aging Capacity
Infrastructure
Drivers:
Urgent pipeline projects which require immediate repairs may Regulatory sustainability
arise anytime during a fiscal year. Some of these repairs cannot
be completed by Central San's Collection System Operations
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. . 1
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 an 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.
Location(s): Collection System
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $100,000 $0 $0 $0 $100,000
Construction $300,000 $200,000 $0 $0 $500,000
FY Total $400,000 $200,000 $0 $0 $600,000
152
May 16, 2019 Regular Board Meeting Agenda Packet- Page 421 of 549
Page 198 of 310
Pumping Station Equipment and Piping Replacement- Phase 2 - District Project 8442
Priori y Rank lanking Score
Collection System Construction Critical 65
Purpose:
To replace or recondition failed and obsolete pumps, piping, Project Drivers
valves, and other pumping station equipment; and to provide Aging Capacity
proper emergency response equipment and critical spare parts at Infrastructure
pumping stations.
Regulatory Sustainability
Drivers:
This ongoing project replaces 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: a - '
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
NL- Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $61,000 $103,000 $200,000 $400,000 $764,000
FY Total $61,000 $103,000 $200,000 $400,000 $764,000
153
May 16, 2019 Regular Board Meeting Agenda Packet- Page 422 of 549
Page 199 of 310
Large Diameter Pipeline Inspection Program - District Project 8443
Program Phase Priority Rank Ranking Score
Collection System Planning Critical 70
Purpose: Project Drivers
To assess the condition of large diameter trunks and interceptors
and confirm the timing for renovation needs. Aging Capacity
Infrastructure
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 sewers ranges from 50 to 150 years depending on -=
pipe material, hydraulic, operating, and environmental conditions.
Nearly half of Central San's large sewers are over 50 years old and t`
should be evaluated for remaining life.
Although Central San performs Closed-Circuit TV (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 pipeline inspection program was developed and prioritized based on pipe age
and consequence of failure. This project is the first of a five-year phase inspection program:
• Review pipeline data and prioritize large diameter sewers for inspection. Initial assessment will be
for around 6,000 feet of large diameter reinforced concrete sewers using enhanced CCTV
• Consider piloting and evaluating the benefits of multi-sensor inspection methods
• Consider deploying hydrogen sulfide meters for evaluating and modeling sewer conditions
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $250,000 $515,000 $530,000 $530,000 $1,825,000
Design $0 $0 $0 $0 $0
Construction $0 $0 $0 $0 $0
FY Total $250,000 $515,000 $530,000 $530,000 $1,825,000
154
May 16, 2019 Regular Board Meeting Agenda Packet- Page 423 of 549
Page 200 of 310
Force Main Inspection Program— District Project 8444
Program Phase Priority Rank Ranking Score
Collection System Planning Very High 60
Purpose: Project Drivers
To assess the condition of force mains and confirm the timing for
renovation needs. Aging Capacity
Infrastructure
Drivers:
Central San maintains 31 force mains with a combined length of Regulatory Sustainability
approximately 23 miles. More than 65% 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 is difficult to
estimate without inspection-based condition assessment results.
Force main failure methods include internal and external corrosion,
mechanical failure due to high pressure and surge events or due to =
external loads and stresses, and material or installation defects.
Recommended force main inspection methods include CCTVr-
inspection, pressure transient monitoring, acoustic leak detection,
and electromagnetic inspection.
Description:
A phased inspection program was developed and prioritized based on age and consequence of failure:
• Initial work will be to prepare an implementation plan for the force main inspections
• Highest priority force main inspections to be evaluated in this project are at the Moraga, Orinda
Crossroads, Lower Orinda, Bates Boulevard, and Wagner Ranch Pumping Stations
• Other high and medium priority force mains may be considered at the San Ramon, Clyde, Concord
Industrial, and Acacia Pumping Stations (Martinez force mains will be evaluated under the Pumping
Station Upgrades - Phase 2)
• Other pumping stations have a lower risk and will be inspected in the future
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $125,000 $0 $0 $0 $125,000
Design $0 $0 $0 $0 $0
Construction $0 $0 $300,000 $1,500,000 $1,800,000
FY Total $125,000 $0 $300,000 $1,500,000 $1,925,000
155
May 16, 2019 Regular Board Meeting Agenda Packet- Page 424 of 549
Page 201 of 310
Pumping Station Security Improvements — District Project 8447
Program Phase Priority Rank Ranking Score
Collection System Design Critical 65
Purpose: Project Drivers
To improve physical security at the pumping stations and to
protect existing critical assets. Aging
Infrastructure Capacity
Drivers:
In addition to worker safety, there are many critical assets that Regulatory sustainability
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°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°J100method
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 or related projects.
Some improvements may be implemented in collaboration with other 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.
Related Projects: Include Moraga, Orinda, Flush Keen, and Martinez projects
Location(s): Pumping Stations
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $131,000 $0 $0 $0 $131,000
Construction $25,000 $51,000 $53,000 $318,000 $447,000
FY Total $156,000 $51,000 $53,000 $318,000 $578,000
156
May 16, 2019 Regular Board Meeting Agenda Packet- Page 425 of 549
Page 202 of 310
Manhole Modifications — District Project 8448
Program Priority Rank Phase Ranking Score
Collection System Critical Construction 65
Purpose:
To replace, repair, or raise manhole covers and top blocks to match Project Drivers
roadway elevations in coordination with pavement restoration Aging Capacity
plans with agencies or existing conditions.
Infrastructure P y
Drivers: Regulatory Sustainability
Central San's collection system includes over 36,000 sewer
structures. Many of these structures are manholes or
rodding inlets which can be in paved roadways, public
right-of-way, and private roadways throughout the
entire service area. Continual replacement of manhole
covers or repairing top blocks are needed on a yearly —
basis as the system ages or the roadways are rebuilt.
Description:
This project will fund the replacement or raising of
manhole covers and repairing top blocks either through
construction projects or reimbursements with cities or # x _
other agencies under joint powers agreements.
Operating Department Impact and Funding Source: f
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $700,000 $309,000 $320,000 $1,589,000 $2,918,000
FY Total $700,000 $309,000 $320,000 $1,589,000 $2,918,000
157
May 16, 2019 Regular Board Meeting Agenda Packet- Page 426 of 549
Page 203 of 310
Collection System Mod ling Support— District Project 8449
Program = Priority Rank Ranking Score
Collection System Construction Critical 65
Purpose:
To maintain and update the InfoWorks° hydrodynamic collection Project Drivers
system model. Aging
Infrastructure Capacity
Drivers:
A new InfoWorks° Integrated Catchment Modeling hydrodynamic Regulatory Sustainability
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:
• Coordinate and update the InfoWorks° model with Graphical Information System
• Consider 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 remote level monitors
and/or flow monitoring equipment, and rain gauges if required
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.
Location(s): Collection System
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $200,000 $103,000 $106,000 $106,000 $515,000
FY Total $200,000 $103,000 $106,000 $106,000 $515,000
158
May 16, 2019 Regular Board Meeting Agenda Packet- Page 427 of 549
Page 204 of 310
Development Sewera a Support— District Project 8450
4W Program �;Ii -��Nwpriority Rank Ranking Score
Collection System Construction Critical N/A
Purpose:
To capitalize Central San force account labor and other expenses Project Drivers
for planning, design, and construction of system sewer extensions. Aging capacity
Infrastructure
Drivers:
Central San requires property owners to pay for main sewer Regulatory sustainability
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,
inspection, and record drawing/mapping efforts are Standard
required to ensure that installed sewers meet SpecIfIcations
Central San's Standard Specifications for Design and for
Construction. These activities are capitalized under this Design and Construction
project.
A portion of the revenue collected for plan review and
inspection is credited to the Sewer Construction Fund and _
offsets some of the expenditures made under this capital _---- -
project. r=-
I;
Description: _
This project is used to fund consultant and staff 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 by developers. Project expenditures are funded from Capital Revenues and fees
collected are credited to the Sewer Construction Fund.
Location(s): Collection System
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $1,130,000 $900,000 $900,000 $5,400,000 $8,330,000
FY Total $1,130,000 $900,000 $900,000 $5,400,000 $8,330,000
159
May 16, 2019 Regular Board Meeting Agenda Packet- Page 428 of 549
Page 205 of 310
Collection System Sewer Renovation— Phase 1 — District Project 8451
Program Phase Priority Rank Ranking Score
Collection System Design/Construction Critical 65
Purpose:
To plan for and design sewer replacement projects for collection Project Drivers
system sewers that are near the end of their useful lives. Aging
Infrastructure Capacity
Drivers:
Nearly all Central San's sewers will reach the end of their useful Regulatory Sustainability
lives within the next 100 years. The bulk of the replacement is
recommended beyond the Ten-Year Capital Improvement Plan.
Continual replacement will provide the best possible protection
against SSOs. The InfoMoster°sewer replacement risk model was 60,m0°°
developed to prioritize the timing for sewer replacement and to 50.m,om
develop a risk-based sewer replacement program. In the first five Q,O,DW
years, Central San is planning to replace up to 7.6 miles per year. 30,0ADW
Replacement for years 10 through 20 in the Capital Improvement C p �
Program increases to potentially 18.4 miles per year. The
ia,00a.oao
Collection System Sewer Renovation — Phase 1 will span the next
five fiscal years (FYs 2018-23). n R h
"ao"000SSS'�8goa� �$$ oo..
Description:
This project is for sewer selection planning and design work for new sewer replacement projects
totaling up to 36,000 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 14
• Lafayette Sewer Renovation - Phase 14
• Danville Sewer Renovation - Phase 3
• Martinez Sewer Renovation - Phase 6
• South Orinda Sewer Renovation- Phase 8
• 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:
The impacts on the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Collection System
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $400,000 $400,000 $400,000 $1,200,000
Design $462,527 $2,000,000 $2,000,000 $2,000,000 $6,462,527
Construction $0 $2,073,000 $15,703,000 $17,141,000 $34,917,000
FY Total $462,527 $4,473,000 $18,103,000 $19,541,000 $42,S79,S27
160
May 16, 2019 Regular Board Meeting Agenda Packet- Page 429 of 549
Page 206 of 310
Lafayette Sewer Renovation— Phase 13 — District Project 8452
Program Priority Rank Phase Ranking Score
Collection System Critical Construction 65
Purpose:
To replace and renovate small diameter sewers within the Project Drivers
City of Lafayette. Aging Capacity
Infrastructure
Drivers:
Central San's 1,500+ mile collection system has pipe segments Regulatory sustainability
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 lives
as evidenced by their need for frequent maintenance, high `' 4
rate of infiltration, and/or threat of structural collapse.
Z�
More than 300 miles of the small diameter sewers in they
collection system were constructed prior to 1956. The 44
methods and materials of construction used at that time do
not currently perform well, and they are the source of over
90% 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 Lafayette Sewer Renovation— Phase 13 Project will replace or rehabilitate up to approximately
11,000 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 Lafayette
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $100,000 $0 $0 $0 $100,000
Design $400,000 $0 $0 $0 $400,000
Construction $0 $3,817,000 $0 $0 $3,817,000
FY Total $5001000 $3,817,000 $0 $0 $4,317,000
161
May 16, 2019 Regular Board Meeting Agenda Packet- Page 430 of 549
Page 207 of 310
South Orinda Sewer Renovation— Phase 7 — District Project 8454
Program Phase Priority Rank Ranking Score
Collection System Construction Critical 65
Purpose:
To replace and renovate small diameter sewers within the
southern portion of the City of Orinda, unincorporated Orinda, and Project
the Town of Moraga. Aging
Infrastructure Capacity
Drivers:
Central San's 1,500+ mile collection system has pipe segments Regulatory sustainability
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 lives
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% 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 7 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, unincorporated Orinda, and the Town of Moraga, 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, unincorporated Contra Costa County, and the Town of Moraga
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $100,000 $0 $0 $0 $100,000
Design $400,000 $0 $0 $0 $400,000
Construction $0 $3,637,000 $0 $0 $3,637,000
FY Total $500,000 $3,637,000 $0 $0 $4,137,000
162
May 16, 2019 Regular Board Meeting Agenda Packet- Page 431 of 549
Page 208 of 310
Walnut Creek Sewer Renovation — Phase 13 — District Project 8455
Program Phase Priority Rank Ranking Score
Collection System Construction Critical 65
Purpose:
To replace and renovate small diameter sewers within the Project Drivers
City of Walnut Creek and unincorporated Walnut Creek. Aging
Infrastructure Capacity
Drivers:
Central San's 1,500+ mile collection system has pipe segments Regulatory sustainability
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 lives 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% 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 x=
level of service provided to customers.
Description:
The Walnut Creek Sewer Renovation - Phase 13 Project will replace or rehabilitate up to approximately
8,200 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 2019-20 FY 2020-21 Future FYs Total
Planning $100,000 $0 $0 $0 $100,000
Design $400,000 $0 $0 $0 $400,000
Construction $0 $3,621,000 $0 $0 $3,621,000
FY Total $500,000 $3,621,000 $0 $0 $4,121,000
163
May 16, 2019 Regular Board Meeting Agenda Packet- Page 432 of 549
Page 209 of 310
Danville Sewer Renovation — Phase 3 — District Project 8456
Program Phase Priority Rank Ranking Score
Collection System Design/Construction Critical 65
Purpose:
To replace and renovate small diameter sewers within the Project Drivers
Las Lomitas neighborhood in the Town of Danville. Aging
Infrastructure Capacity
Drivers:
Central San's 1,500+ mile collection system has pipe segments Regulatory sustainability
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
lives as evidenced b their need for frequent maintenance f� •h° str.,
y q ,
high rate of infiltration, and/or threat of structural '� x
collapse. x
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 _ .4
do not currently perform well, and they are the source of 5.
over 90%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 Danville Sewer Renovation- Phase 3 Project will replace or rehabilitate approximately 5,000 feet
of small diameter sewers and install approximately 40 new private sewer laterals located in both public
right-of-way and easements within the Las Lomitas neighborhood in the Town of Danville.
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):Town of Danville
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $100,000 $0 $0 $0 $100,000
Design $400,000 $0 $0 $0 $400,000
Construction $0 $4,100,000 $0 $0 $4,100,000
FY Total $500,000 $4,100,000 $0 $0 $4,600,000
164
May 16, 2019 Regular Board Meeting Agenda Packet- Page 433 of 549
Page 210 of 310
Pumping Stations Up rades — Phase 2 — District Project 8457
�J Priority Rank: Ranking Score
Collection System Planning/Design Critical 65
Purpose:
To address aging infrastructure and reliability needs at the Project Drivers
Martinez, Fairview, and Maltby Pumping Stations. Aging Capacity
Infrastructure
Drivers:
As part of the Comprehensive Wastewater Master Plan, a Regulatory Sustainability
comprehensive condition assessment of the pumping stations has
identified several structural, mechanical, electrical, and
instrumentation improvements. An Arc Flash Study has also 4-
identified several improvements required at these pumping
stations.
Description: i
The following are major elements included in the project:
• Replace corroded steel dry pits with new wet wells at the
Fairview and Maltby Pumping Stations
• Replace backup generators, electrical, instrumentations,
and controls improvements
• Rehabilitate or replace flow meters
• 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 brae control panels and electrical cabinets
• Improve safety devices such as replacement of gas detection systems and eye wash stations
• Evaluate force mains at each pumping station
Operating Department Impact and Funding Source:
The impacts on the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Martinez, Fairview, and Maltby Pumping Stations
Phase Budget-to-Date FY 2019-207FY -21 Future FYs Total
Planning $50,000 $100,0 $150,000
Design $0 $400,000,000 $1,400,000 $2,700,000
Construction $0 $0 $0 $23,600,000 $23,600,000
FY Total $50,000 $500,000 $900,000 $25,000,000 $26,450,000
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Capital Improvement Budget - Treatment Plant Program
The following are the major points of emphasis for the FY 2019-20 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 as asset preservation, rehabilitation, and replacement. The
main projects in this program are the 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
Disinfection Equipment Upgrades, District Project 7362, and Plant-Wide Instrumentation Upgrades,
District Project 7357, which will extend the useful life of existing equipment and/or facilities. Another
significant project will be the continuation and completion of the final design of the Solids Handling
Facility Improvements Project, District Project 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.
Three related solids projects will be constructed ahead of the main project, which include the
Emergency Sludge Loading Facility Modifications, the Solids Conditioning Building Emergency Stairway,
and the Sludge Blending and Lime Silo repairs.
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
continue construction this year.
Expansion Projects
There are no projects in the Expansion Program in FY 2019-20.
Sustainability/Resiliency/Energy Projects
Under this subprogram, steam and aeration blower systems at the treatment plant will continue
evaluation through condition assessments.
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Project Drivers Example of Project Driver(s)
Each project is described on the following pages. Each
project summary includes project name, description,
Aging Infrastructure capacity prioritization, purpose, 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 sustainability highlighting in yellow background color and bold text.
Driver(s) that is (are) not as significant or not relevant is
(are) displayed in gray.
All projects in this program are summarized, including planned expenditures, in the following Table 3:
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CIB Table 3 - FY 2019-20 Treatment Plant Program Bud et Pro'ect Summary
Project Project Budget-to- FY 2019-20 FY 2020-21 Future FYs Total Project
Number Date Cost
7292 Switchgear Refurbishment- $970,000 $200,000 $0 $0 $1,170,000
Phase 2
7304 Programmable Logic Control $485,000 $0 $117,000 $117,000 $719,000
Systems Upgrades
7315 Applied Research $557,274 $300,000 $500,000 $1,000,000 $2,357,274
Innovations
7317 Plant Control System $780,000 $120,000 $0 $0 $900,000
Network Upgrades
7322 Fire Protection System- $1,406,000 $0 $0 $0 $1,406,000
Phase 2
7327 Headworks Screenings $8,700,000 $0 $0 $0 $8,700,000
Upgrade
7328 Influent Pump Electrical $610,000 $800,000 $2,000,000 $2,000,000 $5,410,000
Improvements
7330 Piping Renovation-Phase 9 $3,180,000 $0 $0 $0 $3,180,000
7339 Plant Control System 1/0 $1,370,000 $1,100,000 $1,000,000 $1,028,000 $4,498,000
Replacement
7341 Walnut Creek/Grayson $100,000 $200,000 $500,000 $400,000 $1,200,000
Creek Levee Rehab
7348 Solids Handling Facility $10,690,000 $6,550,000 $17,500,000 $58,636,000 $93,376,000
Improvements
7349 Steam and Aeration Blower $1,500,000 $3,500,000 $6,000,000 $51,000,000 $62,000,000
Systems Renovations
7351 Mechanical and Concrete $5,044,000 $6,400,000 $2,603,000 $0 $14,047,000
Renovations
7352 Ultraviolet Disinfection $500,000 $600,000 $0 $0 $1,100,000
Upgrades
7353 Outfall Improvements- $100,000 $500,000 $2,450,000 $2,450,000 $5,500,000
Phase 7
7354 Treatment Plant Security $137,000 $718,000 $950,000 $0 $1,805,000
Improvements
7355 Odor Control Upgrades- $0 $0 $300,000 $1,300,000 $1,600,000
Phase 1
7357 Plant-Wide Instrumentation $290,000 $450,000 $531,000 $790,000 $2,061,000
Upgrades
7359 Solids Conditioning Building $1,300,000 $0 $0 $0 $1,300,000
Roof Replacement
7360 Existing Facilities $200,000 $100,000 $0 $0 $300,000
As-Is Drawings
7362 POB Seismic Upgrades $3,331,177 $2,793,000 $0 $0 $6,124,177
7363 Treatment Plant Planning $900,000 $500,000 $500,000 $500,000 $2,400,000
7364 TP Safety Enhancement- $100,000 $600,000 $0 $0 $700,000
Phase 5
7369 Piping Renovation- $0 $750,000 $2,500,000 $500,000 $3,750,000
Phase 10
7370 Annual Infrastructure $0 $2,200,000 $3,400,000 $27,200,000 $32,800,000
Replacement
7371 Condition Assessment of
Buried Pipelines $0 $250,000 $250,000 $500,000 $1,000,000
Total Program: $42,250,451 $28,631,000 $41,101,000 $147,421,000 $259,403,451
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Switch ear Refurbishment— Phase 2 — District Project 7292
.so III riority Rank Ranking Score
Treatment Plant Construction Critical 70
Purpose:
To refurbish electrical switchgears in order to maintain the Project Drivers
reliability of critical electrical infrastructure at the treatment plant. Aging Capacity
Infrastructure
Drivers:
The electrical switchgear throughout the treatment plant were Regulatory sustainability
installed in the 1970s and have been well maintained using
preventive techniques.
Inspections in 2003 and 2004 showed that several trip _
units on the circuit breakers required replacement.
Circuit breakers have been sent out for Class 1
reconditioning and trip unit replacement on an
as-needed basis.
Description:
Ac UTIroN
This project is a multi-year program to repair and replace wA
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
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $970,000 $200,000 $0 $0 $1,170,000
FY Total $970,000 $200,000 $o $0 $1,170,000
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Programmable Logic Control Systems U rades — District Project 7304
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Very High 50
Purpose:
To upgrade programmable logic control (PLC) systems to current Project Drivers
technology for increased performance and improved compatibility Aging
to develop and maintain programming standards.
Infrastructure Capacity
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.
1 -
Description:
The following are major elements included in the project: —
• Upgrade hardware and software necessary to 1 ;=
maintain new PLC applications `I _
• Replace older computers with newer computers �.
capable of running current software
Ll
• 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
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $96,700 $0 $0 $0 $96,700
Construction $388,300 $0 $117,000 $117,000 $622,300
FY Total $485,000 $0 $117,000 $117,000 $719,000
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Applied Research &Innovations — District Project 7315
Program Phase Priority Rank Ranking Score
Treatment Plant Planning Very High 50
Purpose:
To implement applied research projects that evaluate promising Project Drivers
technologies, processes, and innovations. Aging Capacity
Infrastructure P y
Drivers:
One of Central San's goals is to embrace innovation and to be a Regulatory sustainability
leader in the wastewater industry. There are several emerging and
innovative nutrient removal, disinfection, and solids handling
technologies that may offer significant savings 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 r
implement applied research pilots. These pilots will help verify .
the compatibility with wastewater and facilities, increase
understanding of the technology, and help determine whether
to consider the technology.
Description:
This project includes techno-economic evaluations and possible pilot testing of nutrient removal
technologies such as membrane aerated bioreactors, aerobic granular sludge, and other promising
technologies. This project also funds the purchase of research equipment required for on-site field
evaluations, optimizations, bench and pilot tests, and includes replacement of an existing 25 plus
year-old trailer with a new trailer to support ongoing applied research efforts.
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 2019-20 FY 2020-21 Future FYs Total
Planning $557,274 $300,000 $500,000 $1,000,000 $2,357,274
Design $0 $0 $0 $0 $0
Construction $0 $0 $0 $0 $0
FY Total $557,274 $300,000 $500,000 $1,000,000 $2,357,274
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Plant Control System Network UR rades — District Project 7317
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 65
Purpose:
To upgrade the Plant Control System Ethernet Network to Project Drivers
Industrial Ethernet standards. Aging
Infrastructure Capacity
Drivers:
In 2006, Central San's treatment plant installed a new Regulatory sustainability
ethernet based supervisory control and data acquisition system.
At the time the supervisory control and data acquisition
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 r—
path for treatment plant data traffic runs over the ethernet
system that is neither redundant nor sufficiently reliable tom ..��
meet control system standards. • ,��,n r
Description:
The following are major elements included in the project to
meet industry 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
• Install fiber optic lines for the New Server Room, District Project 8243
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $780,000 $120,000 $0 $0 $900,000
FY Total $780,000 $120,000 $0 $0 $900,000
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Fire Protection System— Phase 2 — District Project 7322
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 65
Purpose: Project Drivers
To upgrade or replace treatment plant fire protection systems. Aging Capacity
Infrastructure
Drivers:
Most of the fire protection system was built in the late 1970s, and Regulatory Sustainability
the fire alarm control panel was upgraded in the early 2000s.
There are seven existing fire protection 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 protection 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 fire
protection system are needed.
Description:
Staff anticipates the recommended improvements will be
implemented over a multi-year fire protection improvement
program:
• Phase 1 of the project, completed in 2013, replaced the outdated Headquarters Office Building fire
protection 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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $162,000 $0 $0 $0 $162,000
Design $200,000 $0 $0 $0 $200,000
Construction $1,044,000 $0 $0 $0 $1,044,000
FY Total $1,406,000 $0 $0 $0 $1,406,000
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Headworks Screenings UDgrade — District Project 7327
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 75
Purpose: Project Drivers
To separate and remove screenings and plastics from the influent Aging
wastewater. Infrastructure Capacity
Drivers:
The current screenings operation utilizes coarse bar screens installed Regulatory sustainability
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 ■ I7
impacting future regulations. Screenings removal will optimize
operations, protect downstream treatment plant facilities, extend
downstream equipment life, minimize screenings downtime due to
grinder hopper overload, and reduce equipment maintenance.
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%-inch bar screens with four new multi-rake %-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 %-inch bar screens, hoppers,
and grinders
• Project initiated in FY 2015-16 and is scheduled to close in FY 2019-20
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $200,000 $0 $0 $0 $200,000
Design $750,000 $0 $0 $0 $750,000
Construction $7,750,000 $0 $0 $0 $7,750,000
FY Total $8,700,000 $0 $0 $0 $8,700,000
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Influent Pump Electrical Improvements — District Project 7328
Program Phase Priority Rank Ranking Score
Treatment Plant Design Critical 65
Purpose: Project Drivers
To address aging electrical components of the influent pumps and Aging
improve reliability. Infrastructure Capacity
Drivers:
The Influent Pump Facility is critical to operations. During wet Regulatory Sustainability
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
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 failures 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
• Evaluate replacement of influent pumps motor(s) with immersible motor(s) or elevate to withstand
flooding or other alternatives
• Add Influent Pump No. 6 for reliability and redundancy during peak wet weather events
• Evaluate implementation of "Smart Utility" and use of "Big Data" as part of this project
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 Pumping Station (Headworks Facility)
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $100,000 $0 $0 $0 $100,000
Design $510,000 $400,000 $0 $0 $910,000
Construction $0 $400,000 $2,000,000 $2,000,000 $4,400,000
FY Total $610,000 $800,000 $2,000,000 $2,000,000 $5,410,000
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Pi ing Renovation - Phase 9 - District Project 7330
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 70
Purpose: Project Drivers
To inspect, rehabilitate, and replace above-grade and below-grade
piping and related systems at the treatment plant. Aging Capacity
Infrastructure
Drivers:
During the main treatment plant improvements project in the Regulatory Sustainability
1970s (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. i
Some piping systems are leaking due to corrosion and the
condition of some systems is unknown because they have
not been visually inspected. "
Description:The following are major elements included in the project: Y19F
• Replace miscellaneous chemical systems piping _. •J
• 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) that includes scope of the Treatment Plant Urgent
Repairs (District 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 Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $230,000 $0 $0 $0 $230,000
Design $450,000 $0 $0 $0 $450,000
Construction $2,500,000 $0 $0 $0 $2,500,000
FY Total $3,180,000 $0 $0 $0 $3,180,000
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Plant Control System Input and Output Replacement— District Project 7339
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 70
Purpose:
To upgrade obsolete PLC Input and Output (1/0) cards and Project
associated systems with current technology to maintain reliable Aging
operation and vendor support.
Infrastructure Capacity
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 first treatment plant
PLC 1/0 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 reactively replace units as they fail. -
.r
Description:
_ r
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 cards with modern Schneider X80 1/0 cards
• 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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $200,000 $0 $0 $0 $200,000
Design $270,000 $300,000 $100,000 $100,000 $770,000
Construction $900,000 $800,000 $900,000 $928,000 $3,528,000
FY Total $1,370,000 $1,100,000 $1,000,000 $1,028,000 $4,498,000
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Walnut Creek/Grayson Creek Levee Rehab — District Project 7341
Program Phase Priority Rank Ranking Score
Treatment Plant Design Very High 50
Purpose: Project Drivers
To reduce the risk of flood damage to the treatment plant by
raising levees through a project led by the Contra Costa County Aging Capacity
Flood Control and Water Conservation District (FCD). Infrastructure
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 are 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 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$2.4 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 Budget
Phase Budget-to-Date FY 2019-20 FY 20120-21 Future FYs Total
Planning $100,000 $0 $0 $0 $100,000
Design $0 $200,000 $0 $0 $200,000
Construction $0 $0 $500,000 $400,000 $900,000
FY Total $100,000 $200,000 $500,000 $400,000 $1,200,000
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Solids Handling Facility Improvements — District Project 7348
Program Phase Priority Rank Ranking Score
Treatment Plant Design Critical 75
Purpose: Project Drivers
To rehabilitate and replace the sludge dewatering, sludge handling,
sludge blending, ash handling,furnace air pollution control equipment, Aging
g g' p Infrastructure Capacity
and structural upgrades to the building housing this equipment.
Drivers: Regulatory Sustainability
The existing furnaces have significant remaining useful life; however,
other solids handling equipment requires replacement. 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. The 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 DO
I'I
be needed to reliably comply with current and future air 40
. ��
regulations. The Solids Conditioning Building(SCB)that houses
the furnaces, cogeneration unit, and other critical equipment Or
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 elements included in the project:
• Improvements to Emergency Sludge Loadout Facility and Blending tanks will be constructed separately
ahead of the main Solids 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 and ash handling improvements to reduce fugitive ash emissions, improve
reliability, and modify the 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 Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $1,000,000 $0 $0 $0 $1,000,000
Design $9,690,000 $1,400,000 $0 $0 $11,090,000
Construction $0 $5,150,000 $17,500,000 $58,636,000 $81,286,000
FY Total $10,690,000 $6,550,000 $17,500,000 $58,636,000 $93,376,000
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Page 226 of 310
Steam and Aeration Blower Systems Renovations — District Project 7349
Program Phase Priority Rank Ranking Score
Treatment Plant Planning Critical 80
Purpose: Project Drivers
To evaluate the existing steam system, waste heat recovery, steam
turbines, electrical power distribution system, and secondary treatment Aging Capacity
systems. Infrastructure
Drivers:
Regulatory Sustainability
Central San's energy recovery system uses waste heat 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 may.
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 solids emission controls.
t ,
Description:
Several major steam, electrical, and secondary process 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
• Determine impact from recycled water 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
• The condition assessments will also evaluate, update, and find new optimal ways to distribute electric power
around the treatment plant to provide a safe, robust system in the future, determine remaining useful life
and improvement of the electrical distribution system
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, Electrical Power
Distribution System, Primary/Secondary Facilities, and other Treatment Plant Areas
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $1,500,000 $1,000,000 $0 $0 $2,500,000
Design $0 $1,750,000 $4,500,000 $0 $6,250,000
Construction $0 $750,000 $1,500,000 $51,000,000 $53,250,000
FY Total $1,500,000 $3,500,000 $6,000,000 $51,000,000 $62,000,000
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Mechanical and Concrete Renovations — District Project 7351
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 70
Purpose: Project Drivers
To rehabilitate or replace gates and other mechanical equipment,
as well as existing concrete structures with leaks or severe Aging Capacity
Infrastructure
cracking.
Drivers: Regulatory Sustainability
The gates, concrete, and other miscellaneous equipment and
surfaces within the Headworks and Primary Treatment areas are
exposed to corrosive environments. Slide gates throughout these
areas are essential to stop and re-direct flows as required for
preventive maintenance 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 the existing systems.
Description:
Several major elements are included in this project:
• Repair concrete in the Headworks Drywell, West Gallery, Structure B, Structure D, Primary
Sedimentation Tanks, Primary Effluent Channel, Influent Structure, and Influent Structures 1 and 1A
• Replace or rehabilitate gates and actuators in the Influent Structure, Influent Structure 1 and 1A,
Pre-Aeration, Primary Sedimentation Tanks, and Primary Effluent Channel
• Replace or rehabilitate existing polyvinyl chloride liner, 60-inch and 72-inch pipelines at Structures
B and C, primary collector chain and flights, embedded rails, grit piping, and effluent launders
• Odor Control system repairs have been added in these areas and other nearby structures (New)
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $1,100,000 $0 $0 $0 $1,100,000
Construction $3,944,000 $6,400,000 $2,603,000 $0 $12,947,000
FY Total $5,044,000 $6,400,000 $2,603,000 $0 $14,047,000
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Ultraviolet Disinfection Upgrades — District Project 7352
Treatment Plant Construction Critical 65
Purpose: Project Drivers
To rehabilitate components of the existing ultraviolet (UV) Aging
disinfection system and improve reliability. Infrastructure capacity
Drivers:
The UV disinfection system was constructed in the mid-1990s. Regulatory Sustainability
One of the old denitrification tanks was re-purposed for
constructing the UV channels and some piping modifications M
were completed to route secondary effluent to the UV
system. The existing UV technology is old, inefficient, and
does not have the same controls capabilities and automated
cleaning capabilities as newer UV technology. The existing
system requires significant cleaning and maintenance. The -
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 UV disinfection system. A new t
system will be installed in the next several years under a
separate project.
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 protect the UV system from the elements
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $500,000 $600,000 $0 $0 $1,100,000
FY Total $500,000 $600,000 $0 $0 $1,100,000
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Outfall Improvements— Phase 7 — District Project 7353
Program Phase Priority Rank Ranking Score
Treatment Plant Design Critical 65
Purpose: Project Drivers
To inspect the land and submarine portions of the outfall pipeline to
maintain or repair the pipeline and meet regulatory requirements. Aging
Infrastructure Capacity
Drivers:
Central San's National Pollutant Discharge Elimination System Permit Regulatory Sustainability
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 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
repaired.
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 it 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, 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
• Structural and valve modifications to Structure 9000
• Repair two pier structures over submarine section
• Install new safety access hatch
• May include road improvement for safer, more efficient access to facilities
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, and Suisun Bay
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $100,000 $0 $0 $0 $100,000
Design $0 $500,000 $0 $0 $500,000
Construction $0 $0 $2,450,000 $2,450,000 $4,900,000
FY Total $100,000 $5001000 $2,450,000 $2,450,000 $5,5001000
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Treatment Plant Security Improvements — District Project 7354
Program Phase Priority Rank Ranking Score:
Treatment Plant Design Critical 65
Purpose: Project Drivers
To improve physical security at the treatment plant and to protect
existing critical assets. Aging
Infrastructure Capacity
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 RAMCAPOJ100 method = �"
is a 7-step process including: 1) Asset Characterization;
2) Threat Characterization; 3) 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
• Improved guard facilities, including main gate and contractor staging areas
• 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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $137,000 $200,000 $0 $0 $337,000
Construction $0 $518,000 $950,000 $0 $1,468,000
FY Total $137,000 $718,000 $950,000 $0 $1,805,000
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Odor Control Upgrades — Phase 1 — District Project 7355
Program Phase Priority Rank Ranking Score
Treatment Plant Planning Very High 60
Purpose:
To replace existing odor control systems for the SCB, Headworks, Project Drivers
Pre-Aeration Tanks, and Primary Effluent Channel. Aging Capacity
Infrastructure
Drivers:
Central San's Odor Control Facilities Plan was last updated in Regulatory sustainability
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, a�
piping, panels, ductwork, and fans are experiencing
significant wear and require replacement. In addition,
nearby surfaces such as concrete pads and building
roofs are experiencing significant corrosion. Alternative l
odor control technologies that do not use sodium
hypochlorite and will minimize visible misting will be 3
considered.
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $100,000 $0 $100,000
Design $0 $0 $200,000 $0 $200,000
Construction $0 $0 $0 $1,300,000 $1,300,000
FY Total $0 $0 $300,000 $1,300,000 $1,600,000
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Plant-Wide Instrumentation Upgrades — District Project 7357
Program Phase Priority Rank Ranking Score
Treatment Plant Design Very High 60
Purpose:
To install new instrumentation for improved monitoring, control, Project
and optimization of Central San facilities. Aging
Infrastructure Capacity
Drivers:
Collection and data leveraging are becoming increasingly useful for
wastewater operations, design, and optimization. As Central San Regulatory Sustainability
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 -- IPA
meantime, there are opportunities to optimize existing processes
and possibly reduce operations and maintenance costs; however, -L
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. This project will likely be
constructed with other plant projects.
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
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $100,000 $0 $0 $0 $100,000
Design $190,000 $100,000 $0 $0 $290,000
Construction $0 $350,000 $531,000 $790,000 $1,671,000
FY Total $290,000 $450,000 $531,000 $790,000 $2,061,000
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Solids Conditioning Building Roof Replacement— District Project 7359
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 70
Purpose:
To replace the roof of the Solids Conditioning Building. Project
Drivers: Aging Capacity
Infrastructure
Over the last 10 years, several repairs have been made to the roof
to extend its useful life. Temporary measures have been
implemented to protect the electrical equipment from water Regulatory Sustainability
damage; however, the roof is in poor condition and a roof
replacement is recommended as the long-term solution.
In January 2017, Central San experienced significant rainfall.
During these wet weather conditions, several roof leaks were - ,'M.
identified at the SCB. Some of the leakage is over critical
electrical equipment. Failure of this equipment could result
d
in significant disruptions to operations as well as create
safety hazards. There are also several other critical assets inx
this building, including one of the two treatment plant Mo
control rooms. � t .
Description:
The roof will be replaced for the SCB and an engineered fall protection system will be installed.
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
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $150,000 $0 $0 $0 $150,000
Construction $1,150,000 $0 $0 $0 $1,150,000
FY Total $1,300,000 $0 $0 $0 $1,300,000
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Existing Facilities As-Is Drawings — District Project 7360
Program Phase Priority Rank Ranking Score
Treatment Plant Construction N/A N/A
Purpose:
To develop as-is drawings in electronic computer-aided design Project
(CAD) format for existing facilities. Aging
Infrastructure Capacity
Drivers:
Central San has limited as-built drawings for existing facilities, Regulatory Sustainability
particularly facilities that were constructed over 40 years ago.
Additionally, there are some facilities that have hard copy
as-built drawings that are not in CAD format.
Most of Central San's facilities are over 40 years old. As
these existing facilities require rehabilitation or �"°"'�"°'"`°°"
replacement, it will be important to have as-is CAD
drawings for implementation of capital improvement
projects. Additionally, it is important from an operationsand 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 and
update 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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $200,000 $100,000 $0 $0 $300,000
FY Total $200,000 $100,000 $0 $0 $300,000
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Plant Operations Building Seismic Upgrades — District Project 7362
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 75
Purpose:
Improve the seismic safety of the Plant Operations Building (POB). Project
Aging
Drivers: Infrastructure Capacity
In January 2008,the State of California adopted the 2007 California
Building Code. Among the updates in the 2007 California Building Code
were significant changes to seismic design. In 2009, a seismic evaluation Regulatory Sustainability
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 the 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
comply with the Americans with Disabilities Act 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
• Addition of steel braces and columns
• Installation of new steel collector beams
• MPR enhancements to provide Americans with Disabilities Act compliant restrooms, and improve treatment
plant security and access
• Headquarters Office Building lobby modifications to the reception and permit areas will improve
functionality and access for the public, including the addition of an Americans with Disabilities Act compliant
restroom
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $500,000 $0 $0 $0 $500,000
Construction $2,831,177 $2,793,000 $0 $0 $5,624,177
FY Total $3,331,177 $2,793,000 $0 $0 $6,124,177
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Treatment Plant Planning— District Project 7363
Program Phase Priority Rank Ranking Score
Treatment Plant Planning Critical 85
Purpose:
To complete evaluations for upcoming regulatory requirements, Project
assess aging infrastructure, evaluate capacity requirements, and Aging
investigate opportunities to optimize operation of existing Infrastructure capacity
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 National Pollutant
Discharge Elimination System 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.
Description:
The following are major elements included in the project:
• Support Bay Area Clean Water Agencies nutrient evaluation, management, and reduction strategy
work for the San Francisco Bay Area
• Evaluate nutrient reduction options for Central San
• Evaluate performance and optimization opportunities for miscellaneous equipment and processes
(e.g., secondary treatment and Filter Plant optimizations)
• Evaluate energy reduction and renewable energy opportunities for the treatment plant
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $900,000 $500,000 $500,000 $500,000 $2,400,000
Design $0 $0 $0 $0 $0
Construction $0 $0 $0 $0 $0
FY Total $900,000 $5001000 $500,000 $5001000 $2,400,000
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Treatment Plant Safety Enhancement- Phase 5 - District Project 7364
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 65
Purpose:
To enhance treatment plant safety through identification of safety Project Drivers
concerns, repairs, and capital improvements. Aging Capacity
Infrastructure
Drivers:
Central San and the treatment plant have proactive safety Regulatory Sustainability
programs that are administered by separate committees.
These committees are responsible for addressing safety Lin
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 'r_ ;
emergency exit stairway for the control room in the
Solids Conditioning Building. ,Y
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Related Projects and Bidding:
The project scope was coordinated with planned improvements with the Solids Handling Facility
Improvements project.
Location(s):Treatment Plant
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $100,000 $0 $0 $0 $100,000
Construction $0 $600,000 $0 $0 $600,000
FY Total $100,000 $600,000 $0 $0 $700,000
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Pi ing Renovation — Phase 10 — District Project 7369
Program Phase Priority Rank Ranking Score
Treatment Plant Design Critical 65
Purpose:
To inspect, rehabilitate, and replace above-grade and below-grade Project Drivers
piping and related systems at the treatment plant. Aging
Infrastructure Capacity
Drivers:
During the main treatment plant improvements project in the
1970s (Stage 5A project), numerous above-grade and below-grade Regulatory Sustainability
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. 10
}
Description:
The following are major elements included in the project: 4L
• Replace piping, valves, and pumps throughout the
treatment plant 7.
• Replace the pneumatic water tanks and associated
controls
• Replace water piping in the POB equipment gallery and several pipelines
• Replace equipment identified by the Asset Management Program, and Operations and
Maintenance 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 2019-20 FY 2020-21 Future FYs Total
Planning $0 $50,000 $0 $0 $50,000
Design $0 $600,000 $0 $0 $600,000
Construction $0 $100,000 $2,500,000 $500,000 $3,100,000
FY Total $0 $750,000 $2,500,000 $5001000 $3,750,000
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Annual Infrastructure Replacement— District Project 7370
Program Phase Priority Rank Ranking Score
Treatment Plant Design Critical 65
Purpose:
To fund ongoing rehabilitation and replacement of wastewater Project Drivers
treatment plant assets. Aging
Infrastructure Capacity
Drivers:
The treatment plant consists of over 4,400 assets with a range of Regulatory Sustainability
ages. The majority of existing treatment plant equipment was
installed around 40 years ago. Over time, equipment, piping
systems, and other assets require rehabilitation or
replacement to continue with Central San's high level of
service, reliable management, and treatment of wastewater. ,
Some of the improvements to be funded from this project
were identified as part of condition assessments. Ongoing
condition assessments will be needed to confirm the timing
for other rehabilitation and replacement work.
Description:
Rehabilitation and replacement work will be packaged into
projects that are scoped and funded from this program.
Example of improvements include:
• Roof replacement program including the treatment plant warehouse and standby power facility
• Standby, effluent, primary effluent, portable diesel, and other pump replacement or rehabilitation
• Chemical system tank, pumps, and piping replacement (e.g., sodium hypochlorite, polymer, lime)
• Plant air, process water, and fuel oil system improvements including piping and valves
• Actuators, control panels, and other instrumentation and electrical replacements
• UPCCAA projects that are urgent or critical
• Refurbish coating and cathodic protection systems and other miscellaneous items
Operating Department Impact and Funding Source:
This project will have insignificant impact on the operating budgets. Project expenditures will be
funded from Capital Revenues.
Location(s): Miscellaneous areas within the Treatment Plant
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $100,000 $100,000 $800,000 $1,000,000
Design $0 $250,000 $400,000 $3,200,000 $3,850,000
Construction $0 $1,850,000 $2,900,000 $23,200,000 $27,950,000
FY Total $0 $2,200,000 $3,400,000 $27,200,000 $32,800,000
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Condition Assessment of Buried Pipelines — District Project 7371
Program Phase Priority Rank Ranking Score
Treatment Plant Planning Very High 55
Purpose:
To assess the condition and replacement needs of major buried Project Drivers
piping systems at the treatment plant site. Aging
Infrastructure Capacity
Drivers:
Although several piping systems are accessible in the Central San Regulatory Sustainability
tunnels, there are several piping systems that are buried and
difficult to access for condition assessment. In addition, there
are some channels and submerged piping systems that are
difficult to access. Some of these piping systems are also
required for continuous operation of the treatment plant and
are difficult to temporarily shut down for assessment. Despite
these challenges, it is important to plan any necessary bypassing
operations and perform condition assessments of these pipes,
some of which are over 40 years old. These pipelines are critical
for Central San operations and rehabilitation or replacement
may be required in the coming years.
Description:
This project includes the following major elements:
• Develop a prioritized condition assessment plan for buried piping systems and difficult to access
piping or channels
• Bypass pumping and piping as required
• Field inspection of buried or submerged piping systems and channels
• Identify and develop recommended rehabilitation or replacement needs
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):Treatment Plant
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $250,000 $250,000 $500,000 $1,000,000
Design $0 $0 $0 $0 $0
Construction $0 $0 $0 $0 $0
FY Total $0 $250,000 $250,000 $5001000 $1,000,000
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Capital Improvement Budget - 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 Capital Improvement Budget (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 Information Technology (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, Collection
System Operations Building and other properties, CIB legal expenses, easement and right-of-way
acquisition, and projects related to Central San property improvements. 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 Drivers Example of Project Driver(s)
Each project is described on the following pages. Each
Aging Infrastructure Capacity project summary includes project name, description,
prioritization, purpose, 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 Sustainability highlighting in yellow 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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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 2019-20 General Improvements Program Budget/Project Summary
Project Project Budget-to- FY 2019-20 FY 2020-21 Future FYs Total Project
Number Date Cost
8207 General Security and $134,977 $150,000 $100,000 $0 $384,977
Access
8230 Capital Legal Services $178,665 $20,000 $20,000 $20,000 $238,665
8236 District Easement $258,047 $75,000 $75,000 $75,000 $483,047
Acquisition
8240 IT Development $2,838,794 $500,000 $500,000 $760,000 $4,598,794
8243 Server Room Relocation $2,000,000 $0 $0 $0 $2,000,000
Collection System
8249 Operations Dump Pad $60,000 $0 $0 $0 $60,000
Modifications
8250 Enterprise Resource $500,000 $2,000,000 $1,200,000 $300,000 $4,000,000
Planning Replacement
Capital Improvement
8251 Program and Budget $0 $350,000 $150,000 $800,000 $1,300,000
Improvements
8516 Equipment Acquisition $876,000 $100,000 $250,000 $750,000 $1,976,000
8517 Vehicle Replacement $1,849,000 $1,069,000 $900,000 $4,500,000 $8,318,000
Program
Total Program: $8,695,483 $4,264,000 $3,195,000 $7,205,000 $23,359,483
*New project in FY 2019-20
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General Security and Access - District Project 8207
Program Phase Priority Rank Ranking Score
General Improvements Construction Critical 70
Purpose:
To improve safety for employees and the public, meet safety Project
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 American Water Works Association J100 Risk
Analysis and Management for Critical Asset Protection
methodology. This is a comprehensive approach that enables
the estimation of relative risks across multiple assets while j
considering malevolent and natural hazards.
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. 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
• Evaluate the replacement and improvements to the security guard shack at the plant.
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): Central San-wide
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $134,977 $150,000 $100,000 $0 $384,977
FY Total $134,977 $150,000 $100,000 $0 $384,977
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Capital Legal Services — District Project 8230
Program Phase Priority Rank Ranking Score
General Improvements Planning Critical N/A
Purpose:
To streamline the processing of legal bills. Project
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.
Location(s): Central San-wide
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $178,665 $20,000 $20,000 $20,000 $238,665
Design $0 $0 $0 $0 $0
Construction $0 $0 $0 $0 $0
FY Total $178,665 $20,000 $20,000 $20,000 $238,665
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District Easement Ac uisition— District Project 8236
Program Phase Priority Rank Ranking Score
General Improvements Construction Critical 65
Purpose: Project Drivers
To improve or acquire new property land rights for existing or new
sanitary sewers that are located on private properties and are not Aging Capacity
associated with a current capital project for sewer renovation Infrastructure
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. Central San is
currently evaluating and updating the status of the
existing capitalized easements, 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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $258,047 $75,000 $75,000 $75,000 $483,047
FY Total $258,047 $75,000 $75,000 $75,000 $483,047
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Information Technolo Develo ment— District Project 8240
Program Phase Priority Rank Ranking Score
General Improvements Construction Critical 70
Purpose: Project Drivers
To replace and upgrade Information Technology (IT) infrastructure
and software as needed. Aging Capacity
Infrastructure
Drivers:
An IT Development Plan was developed to centralize efforts and Regulatory sustainability
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 Program
(CIP) and the Ten-Year Capital Improvement Plan.
Description:
This project is the implementation of the IT Master Plan which
includes the following major elements:
• 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
• Cyber security
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $2,838,794 $500,000 $500,000 $760,000 $4,598,794
FY Total $2,838,794 $500,000 $500,000 $760,000 $4,598,794
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Server Room Relocation — District Project 8243
Program Phase Priority Rank Ranking Score
General Improvements Construction Critical 65
Purpose:
To relocate all servers, network, and other related computer Project Drivers
equipment from its current location in the Plant Operations Aging
BuildingPOB basement to the first level. Capacity
(POB) Infrastructure
Drivers:
Regulatory Sustainability
The server and equipment in the POB basement are critical for
day-to-day Central San operations, customer service,
communication, and data management.
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.
Location(s):Treatment Plant
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $85,000 $0 $0 $0 $85,000
Design $250,000 $0 $0 $0 $250,000
Construction $1,665,000 $0 $0 $0 $1,665,000
FY Total $2,000,000 $0 $0 $0 $2,000,000
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Collection System Operations Dump Pad Modifications — District Project 8249
Program Phase Priority Rank Ranking Score
Collection System Program Construction Critical 65
Purpose:
This project will reconfigure the Collection System Operations Project Drivers
dump pad to improve safety and
Aging
efficient Capacity
Y Infrastructure
Drivers:
The current Collection System Operations dump pad slopes Regulatory sustainability
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.
i
Description:
.W s
The following are major elements included in the project: '
„h -
• Demolition of the existing concrete dump pad
• Regrade the site
• Installation of new concrete and drainage
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $5,000 $0 $0 $0 $5,000
Construction $55,000 $0 $0 $0 $55,000
FY Total $60,000 $0 $0 $0 $60,000
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Enterprise Resource Planninig Replacement— District Project 8250
Program Phase Priority Rank Ranking Score
General Improvements Construction Critical 65
Purpose:
To replace our legacy Enterprise Resource Planning (ERP) system Project Drivers
that manages Central San's finances, budget, human resources,
procurement, payroll and other related resources. Aging Capacity
Infrastructure
Drivers:
The existing SunGard ERP system uses outdated technology that Regulatory sustainability
does not meet the current and future Central San business needs.
The latest generation of ERP systems have been developed to
implement modern best-practice processes that will help Central San
to streamline and optimize many business processes. + x
This project will eliminate the need for staff to use many manual
processes and workarounds that are currently in use to accomplish ERP
work. It will enable more organizational transparency by providing
visibility into our financial and business data in ways that are not
currently possible and will provide the latest generation of technology •
to ensure full integration with future business applications.
Description:
The following are major elements included in the project:
• Conversion of data from SunGard system to new ERP system
• Implementation of Human Resources, Finance, Payroll, and related systems
• Staff training
• Integration with related Central San systems
A replacement of Central San's permitting software functionality, currently provided by the SunGard
system, is not included in these costs but may be funded from IT Development or other project
sources.
Operating Department Impact and Funding Source:
This project is expected to have an annual ongoing impact of approximately $200,000 on the Operating
Budget. Other operating efficiencies may offset, in part, some of these direct costs. Project
expenditures are funded from Capital Revenues.
Location(s): Martinez and Walnut Creek Campuses and Cloud
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $100,000 $0 $0 $0 $100,000
Design $200,000 $0 $0 $0 $200,000
Construction $200,000 $2,000,000 $1,200,000 $300,000 $3,700,000
FY Total $500,000 $2,000,000 $1,200,000 $300,000 $4,000,000
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Capital Improvement Program and Budget Improvements - District Project 8251
General Improvements Planning Very High N/A
Purpose:
Provide for the capitalization of the staff time necessary for the Project Drivers
data gathering and production of the CIB and CIP, and for upgrades Aging
to the current program management system software, Infrastructure capacity
E-builder, which is used for all Capital Projects.
Drivers: Regulatory Sustainability
Several drivers are included in the CIP; however, the main driver is CAPITAL IMPROVEMENT PIAN
aging infrastructure and replacement of critical equipment and
systems at Central San. In order to keep up with the increase in
the CIP, staff has modernized its program and project management
software system to be more effective in delivering project with
implementation of E-builder. As of July 1, 2019, E-builder will be
done with its pilot stage and go live for all projects.
0
Description: _ p
Upgrades of additional processes, such as master commitments OYenaCIP �a—d zovcl �
upgrades, and other project management and reporting tools will
be evaluated or included in E-Builder. In addition, an annual
budget will be included in this project to account for the yearly
CIB and CIP.
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): Central San-wide
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $100,000 $100,000 $800,000 $1,000,000
Design $0 $0 $0 $0 $0
Construction $0 $250,000 $50,000 $0 $300,000
FY Total $0 $350,000 $150,000 $800,000 $1,300,000
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E ui ment Acquisition— District Project 8516
Program Phase Priority Rank Ranking Score
General Improvements Construction Very High 55
Purpose:
To provide new, safe, and cost-effective equipment for operations Project Drivers
and maintenance of Central San facilities. Aging
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:
• IRIS M (Visual Vibration) System
• Cold Vapor Atomic Fluorescence Mercury Analyzer
Operating Department Impact and Funding Source:
lr�
This project will have an insignificant impact on the operating
budgets. Project expenditures are funded from Capital Revenues. >>
Location(s): Central San-wide
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $876,000 $100,000 $250,000 $750,000 $1,976,000
FY Total $876,000 $100,000 $250,000 $750,000 $1,976,000
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Vehicle Replacement Program — District Project 8517
Program: Phase: Priority Rank: Ranking Score
General Improvements Construction Very High 55
Purpose:
Provide safe and cost-effective vehicle replacement. Project Drivers
Drivers: Aging Capacity
Infrastructure
Central San will budget and acquire vehicles under this
project and use asset management principles and historic Regulatory sustainability
replacement costs to provide an effective vehicle
replacement strategy. Staff, comprised of Engineering and
Operations, has forecasted a yearly budget (average costs
from FY 2016-2026 plan) which 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
specialized vehicles, the budget for this program can carry +
forward to the next fiscal year when delivery takes place. - c,
Description: r
The following vehicles are being considered in FY 2019-20:
• Truck mounted sewer rodder
• Multi-conductor CCTV van
• Medium duty dump truck
• Sports utility van
• Cargo van
• Half-ton 44 truck
• Three quarter-ton 2x4 truck
• Half-ton 2x4 truck
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): Central San-wide
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $0 $0 $0 $0 $0
Construction $1,849,000 $1,069,000 $900,000 $4,500,000 $8,318,000
FY Total $1,849,000 $1,069,000 $900,000 $4,500,000 $8,318,000
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Capital Improvement Budget - 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
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 k w
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 ;F
to identify cost-effective landscape irrigation and
r
industrial recycled water projects.
Central San currently produces over 600 million gallons
of recycled water per year 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.
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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 Contra Costa Water District and Santa Clara Valley Water District.
Project Drivers Example of Project Driver(s)
Each project is described on the following pages. Each
project summary includes project name, description,
Aging Infrastructure Capacity prioritization, purpose, 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 Sustainability highlighting in yellow background color and bold text.
Driver(s) that is (are) not as significant or not relevant is
(are) displayed in gray.
CIB Table 5 — FY 2019-20 Recycled Water Program Budget/Project Summary
Project Project Budget-to- FY 2019-20 FY 2020-21 Future FYs Total
Number Date Project Cost
7306 Zone 1 Recycled Water $532,894 $100,000 $53,000 $53,000 $738,894
7346 Recycled Water Distribution $205,000 $0 $0 $0 $205,000
System Surge Analysis
7361 Filter Plant&Clearwell $2,537,000 $3,452,000 $8,000,000 $19,011,000 $33,000,000
Improvements—Phase 1A
7365 Recycled Water Clearwell Repairs $1,700,000 $0 $0 $0 $1,700,000
7366 Recycled Water Distribution $15,000 $500,000 $200,000 $1,400,000 $2,115,000
System Renovations Program
7368* Water Exchange Project $250,000 $100,000 $0 $0 $350,000
Total Program: $5,239,894 $4,152,000 $8,253,000 $20,464,000 $38,108,894
*A new project authorized in FY 2018-19
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Zone 1 Recycled Water— District Project 7306
Program Phase Priority Rank Ranking Score
Recycled Water Construction Very High 50
Purpose: Project Drivers
To provide recycled water for landscape irrigation customers
within the Zone 1 distribution area, which includes Pleasant Hill aging Capacity
Infrastructure
and portions of Concord and Martinez.
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 _
f r r•�3
and commercial uses ranges from 200 to 400 million gallons
per year. L
Central San staff evaluates potential new recycled water + ~
landscape irrigation sites near the existing recycled water
distribution system and works with developers to evaluate
options for connecting to the system.
Description:
This project provides funds for the planning, design, and
construction of recycled water facilities for landscape irrigation
and commercial customers in the Zone 1 distribution 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, and Martinez
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $117,000 $0 $0 $0 $117,000
Design $0 $0 $0 $0 $0
Construction $415,894 $100,000 $53,000 $53,000 $621,894
FY Total $532,894 $100,000 $53,000 $53,000 $738,894
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Recycled Water Distribution S stem Surge Analysis — District Project 7346
Program Phase Priority Rank Ranking Score
Recycled Water Planning Critical 65
Purpose: Project Drivers
To update the recycled water distribution model and conduct a
Aging pressure transient and surge analysis of the Recycled Water Agcapacity
Distribution System. Infrastructure
Drivers: Regulatory Sustainability
The recycled water distribution system has experienced
several 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,to
evaluate other potential distribution system hydraulic
bottlenecks and deficiencies, 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, pumps, and distribution system
• Evaluate opportunities to manage pressure transients
• Software 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): Zone 1 Recycled Water Distribution System - Pleasant Hill, Concord, and Martinez
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $205,000 $0 $0 $0 $205,000
Design $0 $0 $0 $0 $0
Construction $0 $0 $0 $0 $0
FY Total $205,000 $0 $0 $0 $205,000
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Filter Plant&Clearwell Improvements — Phase 1A— District Project 7361
Program Phase Priority Rank Ranking Score
Recycled Water Design Critical 70
Purpose:
To rehabilitate and replace components of the existing Filter Plant Project Drivers
recycled water facilities. Aging
Infrastructure Capacity
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
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. Additional improvements will be
incorporated in a future Phase 1B project.
Description:
The Phase 1A project includes the following major elements:
• Rehabilitate and replace various electrical equipment (motor control centers, switchgear,
substation), and PLCs
• Replace one filter and chemical addition improvements and rehabilitate coagulant flash mixing,
backwash gates, and other miscellaneous equipment and valves
• Replace sodium hypochlorite piping and pumps used for Title 22 disinfection compliance
• Clearwell storage improvements or new storage tanks and related equipment
• Replace pump motors and electrical at the Clearwell Pumping Station
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
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $1,130,000 $0 $0 $0 $1,130,000
Design $1,407,000 $1,200,000 $0 $0 $2,607,000
Construction $0 $2,252,000 $8,000,000 $19,011,000 $29,263,000
FY Total $2,537,000 $3,452,000 $8,000,000 $19,011,000 $33,000,000
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Recycled Water Clearwell Repairs — District Project 7365
Program Phase Priority Rank Ranking Score
Recycled Water Construction Critical 80
Purpose: Project Drivers
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 •'t'
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: P
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 '
• Project initiated in FY 2017-18 and is scheduled to close in
FY 2019-20
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
Project Budget
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $0 $0 $0 $0 $0
Design $60,000 $0 $0 $0 $60,000
Construction $1,640,000 $0 $0 $0 $1,640,000
FY Total $1,700,000 $0 $0 $0 $1,700,000
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Page 260 of 310
Recycled Water Distribution System Renovations Program - District Project 7366
Recycled Water Planning Very High 60
Purpose:
To renovate existing recycled water distribution system facilities. Project Drivers
Aging
Drivers:
Infrastructure Capacity
Central San's recycled water distribution system consists of
approximately 13 miles of recycled water distribution piping, Regulatory sustainability
which includes several isolation valves, pressure reducing
valves, air relief valves, hydrants, flow meters, and other
connections and appurtenances. The recycled water
distribution system includes pressured pipes installed
over various years ranging from the mid-1990s to 2015 ;
and now serves over 30 customers. Eventual - „y
renovations and upgrades of the distribution system
components will be required to maintain reliable service
to Central San's recycled water customers.
0
Description: ou
This project includes renovation of recycled water piping, '• :
valves, meters, and other appurtenances. In addition, k
this project will include upgrades to overall system
reliability and continued 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
Phase Budget-to-Date FY 2019-20 FY 2020-21 Future FYs Total
Planning $15,000 $85,000 $0 $0 $100,000
Design $0 $200,000 $0 $0 $200,000
Construction $0 $215,000 $200,000 $1,400,000 $1,815,000
FY Total $15,000 $5001000 $200,000 $1,400,000 $2,115,000
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May 16, 2019 Regular Board Meeting Agenda Packet- Page 484 of 549