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BOARD OF DIRECTORS
a I
1
Paul H. Causey Michael R. McGill James A. Nejedly Tad J. Pilecki David R. Williams
Board Member Board President Board Member Board President Board Member
Pro Tem
EXECUTIVE MANAGEMENT
Roger S. Bailey, General Manager Ann Sasaki, Deputy General Manager/
Jean-Marc Petit, Director of Engineering Director of Operations
&Technical Services Kenton Alm, Counsel for the District
Philip Leiber, Director of Finance & Katie Young, Secretary of the District
Administration
CONTACT FOR COPIES
Central San Finance Division,5019 Imhoff Place, Martinez,CA 94553,925-228-9500
To view or download an electronic version,visit centralsan.org
.R
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�)CENTRA!_SAN
CFKTW tdr7*A COSTA UMIA/I DdWI
VISION , MISSION ,
6llt, VALUES
OUR MISSION
To protect public health and the environment
OUR VISION
To be an industry-leading organization known for environmental stewardship,
innovation, and delivering exceptional customer service at responsible rates
OUR VALUES
PEOPLE COMMUNITY PRINCIPLES LEADERSHIPAND
Respect customers Collaborate with Be truthful and COMMITMENT
and employees water sector honest Promote a passionate
Work effectively partners Be fair,kind,and and empowered
and efficiently as a Foster community friendly
workforce
team relationships Take ownership and Encourage continuous
Celebrate our Be open,transparent, responsibility growth and
successes and and accessible development
learn from our Understand service Inspire dedication and
challenges level expectations top-quality results
Provide a safe and
healthful environment
4
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• for, .-
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WMI
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GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
PRESENTED TO
Central Contra Costa Sanitary District
California
For the Fiscal Year Beginning
July 1, 2019
O'Ae-a:� P-
Executive Director
The Government Finance Officers Association (GFOA) 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, 2019. 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.
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Table of Contents
Introduction
GeneralManager's Message..........................................................................................................................................11
AboutCentral San...........................................................................................................................................................16
OrganizationalStructure.................................................................................................................................................22
Budgeting Calendar, Process,and Spending Authorities................................................................................................23
StrategicPlan Summary..................................................................................................................................................28
Financial Overview
FinancialOverview..........................................................................................................................................................33
Financial Planning Policies
FiscalPlanning Policies....................................................................................................................................................35
FiscalReserves Policy......................................................................................................................................................35
Basisfor Budgeting.........................................................................................................................................................36
Debt Management and Continuing Disclosure Policy....................................................................................................39
InvestmentPolicy...........................................................................................................................................................39
CurrentFinancial Plan.....................................................................................................................................................40
Operationsand Maintenance.........................................................................................................................................41
Capital.............................................................................................................................................................................41
Financial Summary
FinancialSummary..........................................................................................................................................................43
Sourcesof Funds.............................................................................................................................................................44
SewerService Charge.....................................................................................................................................................49
Useof Funds...................................................................................................................................................................51
Operations and Maintenance Budget Overview............................................................................................................53
Variances in Operations and Maintenance Budget........................................................................................................56
Operations and Maintenance Budget by Operating Department..................................................................................60
Historical Variances in the Operations and Maintenance Spending..............................................................................61
Staffing,Salaries,and Benefits .......................................................................................................................................62
BudgetedFull Time Equivalents......................................................................................................................................63
StaffingChanges.............................................................................................................................................................64
CapitalImprovement Budget..........................................................................................................................................65
Impact of Capital Improvement Budget on Ongoing Operations and Maintenance Budget.........................................66
ReserveProjections........................................................................................................................................................67
DebtService....................................................................................................................................................................70
Long-Term Spending Trend.............................................................................................................................................71
Operating Departments
OperatingDepartments..................................................................................................................................................73
AdministrationDepartment...........................................................................................................................................74
Engineering and Technical Services Department.........................................................................................................111
OperationsDepartment................................................................................................................................................131
Self-Insurance Program
Self-Insurance Program ................................................................................................................................................153
Capital Improvement Program
Capital Improvement Program.....................................................................................................................................161
Ten-Year Capital Improvement Plan
Ten-Year Capital Improvement Plan.............................................................................................................................257
Debt Program
DebtProgram................................................................................................................................................................275
Supplemental Financial Information
Supplemental Financial Information ............................................................................................................................281
Glossary and Acronyms
Terms, Definitions,Acronyms, and Abbreviations Used in Budget Document............................................................289
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General Manager's Message
Honorable Members of the Board of Directors:
I am proud to present the Central Contra Costa Sanitary District's (Central San's) Fiscal Year
(FY) 2020-21 combined budget. This budget reflects Central San's continuing commitment to
protecting public health and the environment, while providing outstanding service to the people of
central Contra Costa County at fair and reasonable rates.
A Year of Milestones
This was a year of noteworthy accomplishments for Central San. We celebrated more than two
decades of 100% compliance with our National Pollutant Discharge Elimination Permit — the longest
successful streak of any wastewater agency in California and among the top 20 in the nation. Through
optimizing our pipeline inspection, maintenance, and replacement schedules, we reduced our sewer
overflows and achieved one of the best reliability records in the state, ensuring that more than
99.9999% of the wastewater we collected made it to our treatment plant without incident. And we
implemented numerous infrastructure projects in alignment with our 20-year master plan, including
the following:
:a • Replaced 5 miles of aging neighborhood sewer pipes.
� ' -w " w • Completed the seismic upgrade of our Plant Operations Building,
which houses our Control Center—a state-of-the-art
-� computerized system that monitors and controls every phase of
the wastewater cleaning process, 24 hours a day.
Made significant headway on a project to rehabilitate the
structures and equipment where wastewater enters the
l treatment plant and in the primary treatment areas.
• Completed the first phase of our steam and aeration system
assessments, which will allow us to evaluate options to improve
safety and reliability, extend the useful life of this critical
equipment, and reduce operating costs.
- - In addition, we provided exceptional customer service through
innovative recycled water, household hazardous waste (HHW), and pharmaceutical collection
programs, as well as award-winning public outreach and student educational programs.
Finally, we rose to the challenge of the COVID-19 pandemic, ensuring uninterrupted wastewater
collection and cleaning services for our community during this critical time.
Embracing the Future
As we approach our 75th year, Central San continues to pursue new methods and technologies to
ensure we are making the most of each customer dollar, without compromising service. We continue
to evaluate and implement projects to improve asset management, increase energy efficiency,
enhance safety, and reduce operations and maintenance costs. We also continue to realize cost
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savings through our transition to California Public Employees' Retirement System health benefits and
have made significant progress toward implementation of a new Enterprise Resource Planning (ERP)
system. The new ERP system will streamline processes, increase functionality, and provide better
reporting tools to help Central San manage our resources.
These efforts have helped us lay a solid foundation for the future and achieve timely cost savings that
will be applied to critical infrastructure projects, including renovations to our solids handling and
recycled water production and storage facilities. We also are investing in upgrades to our pumping
stations and continue proactively replacing aging neighborhood sewer pipes, to ensure reliable,
trouble-free service for our customers for decades to come.
Accomplishments within our Strategic Plan Goals
As we strive to provide exceptional service at qq
reasonable rates, our two-year Strategic Plan GOAL 6 GOAL
serves as a guidepost to keep us focused on our Embrace Provide exceptional.�_',,
vision and goals. Below are some of Central IF technology, customer
F innovation,and maintain an excellent
San's major accomplishments under each of the environmental reputation in the
six goals in the Strategic Plan: sustainability
KRAUUTTIVOTINTNIM Provide exceptional customer GOAL 5GOAL 2
r service and maintain an Maintain a Fiscal Year�
excellent reputation in the reliable GDALSrequirements
regulatory
community infrastructure
• Developed a state and
national award-winning 77 GOAL 4 GOAL 3
develop,
student education program,
and retain a highly responsible A
Pipe Protectors, and and
the number of workforce
students served with this utility
addition 6L
• Renewed California Special Districts Leadership Foundation Transparency Certificate
of Excellence
• Presented results of a customer survey results to the Board, which researched
evaluated awareness, satisfaction, desire to learn more about Central San, and
preferred methods of receiving information
• Expanded social media outreach and began posting on Instagram to further position
Central San as a community and environmental leader
• Continued to produce outreach and videos showcasing infrastructure reliability and
Wipes Clog Pipes messaging
• Oversaw over 57,000 visits to the Household Hazardous Waste (HHW) Collection
Facility and Residential Recycled Water Fill Station by residents, small businesses,
reuse customers, retail partners, and fill station users
• Provided wastewater treatment and collection service without interruption during
the COVID-19 pandemic
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111111MARVA1131 Strive to meet regulatory requirements
• Achieved 22 consecutive years of 100% compliance with Central San's National
Pollutant Discharge Elimination System Permit (NPDES), governing wastewater
discharge
• Reduced sanitary sewer overflows from a high of 162 in 2012 to a low of 22 in 2019
• FY 2019-20, as of March 31 (1.17 spills per 100 miles of pipeline)
• Cleaned 569 miles and televised 108 miles of sanitary sewers, completing 12,714
sewer maintenance work orders on schedule 99% of the time
• Collected 1,577,000 pounds of household hazardous waste prior to the Household
Hazardous Waste Facility's closure on March 16 due to the COVID-19 pandemic
• Collected 6,386 pounds of pharmaceuticals through the Pharmaceutical Disposal
Program
• Actively engaged in regulatory issues through involvement with Bay Area Clean
Water Agencies (BACWA) and the California Special Districts Association (CSDA)
Legislative Committee
Be a fiscally responsible and effective wastewater utility
• Achieved 19 consecutive years of receiving the GFOA Certificate of Achievement for
Excellence in Financial Reporting
• Awarded the GFOA Distinguished Budget Presentation Award for the FY 2019-20
Budget for the second consecutive year after applying for the first time two years
ago
• Delivered a benchmarking study comparing Central San's performance over the past
three fiscal years to comparable agencies' performances statewide and nationwide
• Restructured the chart of accounts based on the GFOA's best practice guidelines for
greatly improved reporting functionalities
• Successfully increased funding amount of State Revolving Fund loans for the Solids
Handling Facility Improvements Project from $89.6 million to $120 million
• Developed the FY 2020-21 Budget with a seventh year (FY 2014-15 through
FY 2020-21) of stable Operations and Maintenance budgeted costs in a range of
$87.5 to $91.7 million
Recruit, develop, and retain a highly trained and safe workforce
■*� • Hosted bi-monthly HR @ Your Service trainings for employees, in addition to
periodic financial and wellness seminars
• Completed the third Management Academy, which for the first time included
participants from sister agencies
• Paired seven mentees with mentors in the third year of the BOOST Mentorship
Program
• Deployed an employee survey to gauge engagement levels
• Began tracking labor management committee action items to record resolution of
issues through collaborative discussions
• Operated safely with zero Cal/OSHA violations
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• Collection Systems Operations Division, Administration Department, and
Engineering and Technical Services Department completed calendar year 2019 with
zero lost workdays
. • Maintain a reliable infrastructure
• Renovated sewers in Walnut Creek, Lafayette, Orinda, and other nearby
communities
• Began the Annual Infrastructure Replacement Project and construction of the
Pumping Station Upgrades, Phase 1
• Completed several critical infrastructure improvement projects at the treatment
plant, including the Piping Renovations, Phase 9; Plant Operations Building Seismic
Improvements; and Server Room Relocation Projects
• Continued comprehensive two-year program to perform condition assessments for
the Steam and Aeration and Blower Systems Renovations Project
GOAL Embrace technology, innovation, and environmental sustainability
• Made significant progress in the replacement of the decades-old ERP software, for
increased automation, improved record keeping, and ease of reporting.
• Implemented the first stages of the new Oracle ERP system, including the Core
Human Resources module and most of the Core Financial modules
• Launched a new payroll system which transitioned employees from a monthly
payday to biweekly pay
• Completed a filter plant pilot under the Filter Plant and Clearwell Improvements
Project
• Formed a Central San Smart Initiative Steering Committee to review and champion
initiatives to leverage data to improve operations and reduce costs
• Designed new paperless workflows for key financial business processes to improve
internal control structure, operational efficiency, and transparency
• Distributed approximately 130 million gallons of recycled water to businesses and
residents
• Continued to work toward advancing the Refinery Recycled Water Exchange Project
partnership
• Continued involvement in the Hydrothermal Processing of Wastewater Solids
(HYPOWERS) Project to investigate the potential to turn wastewater solids into
biofuels
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.
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Continuing our Progress
The FY 2020-21 Budget will enable Central San to build upon these successes, address our challenges,
and meet our goals for FY 2020-21 as outlined in the Strategic Plan. I want to thank the Board for
providing the vision, resources, and support necessary to achieve these goals and respond to future
challenges. I also want to 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 essential
service. Accordingly, the proposed budget represents our commitment to serving them with excellence
and providing 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.
y?
Roger S. Bailey
General Manager
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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 145 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 from an
additional 37 square miles for residents of Concord and Clayton under a 1974 contract with the City of
Concord.
Suhwr Boy
Sewage collection and wastewater
Martinez
treatment; household hazardous
~
� � waste (HHW) disposal
Concord ■
PleasantWastewater treatment and HHW
Hill Clayton
disposal for residents in Concord and
Walnut Clayton by contract
E Creek
2° Lafayette HHW disposal only
Orinda IT
Moraga
• Central San headquarters, treatment
Danville plant, HHW Facility, and Residential
Recycled Water Fill Station
San Ramon
■ Collection System Operations
N headquarters
Central San by the numbers
• Serves nearly 500,000 residents and more than 3,000 businesses in central
_ Contra Costa County
• Maintains over 1,500 miles of sewer pipelines and 18 pumping stations to
carry wastewater to our regional treatment plant in Martinez
• Cleans more than 13 billion gallons of wastewater per year
` • Produces more than 500 million gallons of recycled water every year for
irrigation and industrial uses
! • Collects 1.5 million pounds of household hazardous waste per year, and
reuses or recycles about 90% of those materials
• Collects more than 6,000 pounds of unwanted medications per year
through the Pharmaceutical Disposal Program
= • Achieves an average 3.9 out of 4.0 customer satisfaction rating for sewer
M emergency response (as of Q3 in FY 2019-20)
• Serves more than 6,000 students through school education programs every
year
• Welcomes more than 500 participants to treatment plant tours and
speakers bureau presentations per year
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Community Profile
For over 70 years, Central San has been proud to serve its customers in the San Francisco Bay Area's
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
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
t 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.
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Service Area Population (Last Ten Years)
As of January 1 Inside District Concord/Clayton TotalServed %Change
2010 319,377 135,378 454,755 -0.32%
2011 321,800 133,600 455,400 0.14%
2012 326,900 134,200 461,100 1.25%
2013 332,600 134,900 467,500 1.39%
2014 335,009 135,856 470,865 0.72%
2015 339,029 137,357 476,386 1.17%
2016 340,667 140,916 481,583 1.09%
2017 344,591 139,654 484,245 0.55%
2018 348,333 140,590 488,923 0.97%
2019 352,733 151,542 494,275 1.09%
Population by Community (2010 and 2019)
Community* As of January 1,2010 As of January 1,2019
Clayton 10,936 11,653
Concord 124,442 129,889
Danville 43,110 45,270
Lafayette 24,206 26,327
Martinez 21,078 21,745
Moraga 14,701 16,939
Crinda 17,799 19,475
Pleasant Hill 33,384 35,055
San Ramon 51,099 69,143
Walnut Creek 65,443 70,121
Unincorporated Contra Costa County** 48,557 48,658
Total Service Area 454,755 494,275
Contra Costa County Total 1,073,055 -1,155,879
* Central San shares service of these communities with other agencies,and adjustments for the populations served by
those other agencies have been made
**Includes Alamo, Clyde,and Pacheco
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 2018-19)
Customer • . Operating
City of Concord* $15,205,292 1 16.44%
First Walnut Creek Mutual $521,550 2 0.56%
Park Regency Apartments $489,708 3 0.53%
Sunvalley Shopping Center $453,512 4 0.49%
John Muir Health** $413,900 5 0.45%
Second Walnut Creek Mutual Apartments a
$411,750 6 0.45/
Bishop Ranch City Center $315,106 7 0.34%
San Ramon Unified School District $266,550 8 0.29%
Branch Creek Vista Apartments $244,180 9 0.26%
Contra Costa County General Services** $219,600 10 0.24%
Total $18,541,148 20.05%
* 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
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Active Service Accounts and FY Sewer Service Charge Billings (FY 2018-19)
User Group Accounts" 2018-19 Sewer Service Charge %of Total
Billings
Residential 114,101 $77,787,351 80.2%
Mixed Use 428 $6,322,681 6.5%
Office 964 $2,498,062 2.6%
Hotel/Motel 23 $1,374,546 1.4%
Food Service 163 $1,113,313 1.1%
Government 175 $871,268 0.9%
Schools 251 $846,826 0.9%
Businesses 387 $705,933 0.7%
Recreation/Entertainment 135 $711,653 0.7%
Automotive/Car Wash 242 $715,534 0.7%
Market/Supermarket 39 $559,623 0.6%
Industrial/Permitted 11 $513,846 0.5%
All Other User Groups 576 $3,511,832 3.6%
Partial Year Charges and Prior Year Adjustments $226,911
Total 117,495 $97,245,533 100%
* Categories were updated in FY 2018-19; data published in FY 2018-19 CAFR had inaccuracies that have been corrected
here
**Accounts are defined as dwelling units for residential customers and meters for non-residential customers
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Ten Largest Employers in Contra Costa County (2018 and 2019)
2018 2019
Employers Estimated Employees %of Total County Employment
Employment
Chevron Corporation 10,000+ 1.82% 1.84%
Bay Alarm Company 1,000-4,999 0.56% 0.56%
St. Mary's College 1,000-4,999 0.56% 0.55%
Bio-Rad Laboratories 1,000-4,999 0.56% 0.55%
Job Connections 1,000-4,999 0.56% 0.55%
John Muir Medical Center 1,000-4,999 0.56% 0.55%
Kaiser Permanente 1,000-4,999 0.56% 0.55%
La Raza Market 1,000-4,999 0.56% 0.55%
Martinez Medical Offices 1,000-4,999 0.56% 0.55%
USS-POSCO Industries 1,000-4,999 0.56% 0.55%
All Others In 2018: 511,900 93.14% 93.20%
In 2019:506,800
Source:County of Contra Costa,California,California Annual Financial Report for June 30,2019,Statistical Section, principal
employers excludes government employers
Economic Statistics for Contra Costa County (Last Ten FYs)
Per Capita Average Annual
FY Ended June 30 Population* Personal income* Personal Income* unemployment
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%
2018 1,150,215 $94,900,003,000 82,506 3.5%
2019 1,155,879 N/A N/A 3.2%
* Source: U.S. Department of Commerce, Bureau of Economic Analysis,"CAINCI"figure. Estimates for 2010-2016 reflect
county population estimates available as of March 2018
**Source:State of California Employment Development Department,annual calendar figure,except 2018,which is June.
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Organizational Structure
Central San is governed by a Board of
Directors whose five members are Electorate
elected at-large on a non-partisan basis
and serve a four-year term.
Board ,
Directors
The Board appoints the General
Manager, the Counsel for the District,
General
and the Secretary of the District. Manager
Central San is organized into three
Directorof
departments: Administration, '
Engineering and Technical Services, Technical Services
and Operations.
Central San currently has 291 budgeted
full-time employees, and this number
has remained the same for the past ,
four years. Two additional positions
were authorized by the Board during •. . .
FY 2019-20 which are expected to be �-vie:
transitional for a period of not more Plant
than two years. Maintenance
This team of employees is led by a
General Manager, a Deputy General
Manager, two Department Directors,
and 11 Division Managers.
The chart on the right depicts the operating divisions and programs that are funded in the budget.
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.
t
M 0
� �1V
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Budgeting Calendar, Process, and Spending Authorities
The budget development process for FY 2020-21 started midway through FY 2019-20 with the updated
financial plan. Board review of the financial plan took place in two workshops, on November 4, 2019,
and March 12, 2020. Board input was used in the budget development during this time period, and
through the preparation of the budget book in April.
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. Several cycles, or passes, of
budget development took place thereafter. 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, 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 2020-21 is the first year of a two-year Strategic Plan cycle. The strategic goals, strategies, initiatives,
key success measures, and metrics of that plan were established during mid FY 2019-20, 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 FYs 2020-22 Strategic Plan.
During FY 2018-19, staff presented an update of the financial plan and commenced a discussion about
the need for sewer service rate adjustments. During a 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, and average
increase across all customer classes of 5.25%, 5.25%, 4.75%, and 4.75%. Annual public hearings will be
conducted for years two through four to determine if lesser rate adjustments are possible. The public
hearing for FY 2020-21 was conducted on April 16, 2020, where the Board continued the current
course for FY 2020-21.
A diagram summarizing the budget and rate development process is provided below.
JULY-OCTOBEF
tadIdentify Key Financial Issues
1 , Place Prior Year SSC on Roll
-Conduct Board of Directors
'CommitteeMeetings,Workshops,and Board L -Calculate Administrative Overhead I d,
_
s :Refine Issues oconduct CapacityDeveloper Fee , . . . • •uct Capital Budget • •
1 .Develop Financial Projections
-Conduct Public Hearings *Conduct Financial Planning
-Adopt Final Budget WA orkshop
L U.�-Rcceive Board of Directors' •
Direc ion
-Prepare Proposition 2 18 Plan
-Conduct Proposition
Outreach
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A calendar of key intersecting events during the process for the FY 2020-21 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.
Ke Strategic Plan, Budget, and Rate Setting Events for FY 2020-21 Budget
Date Strategic Plan Budget Rate Setting
Workshop to collect input on
the FYs 2020-22 Strategic
January 2020 Plan,guided by the Board's N/A N/A
revised Vision and Values
and re-adopted Mission
Incorporate staff updates
into draft FYs 2020-22 Departments/divisions
February 2020 develop and submit N/A
Strategic Plan operating budget proposals
Administration Committee April 16: Board Rate
reviews draft FYs 2020-22 Workshop(Review of
Strategic Plan. FY 2019-20 General Manager reviews Financial Plan including
March 2020 strategic performance up to operating budget with updates to the Ten-Year
the third quarter is departments/divisions CIP and CIB
incorporated into the budget
Draft operating budget
finalized with
departments/divisions Board meeting to
FYs 2020-22 Strategic Plan is review potential
April 2020 graphically designed Draft Ten-Year Capital changes to previously
Improvement Plan (CIP) adopted rates for FY
finalized by Department of 2020-21
Engineering and Technical
Services
Draft Operating Budget
presented to the Finance
Administration Committee Committee and the Board
May 2020 reviews and Board receives Draft Capital Improvement N/A
final FYs 2020-22 Strategic
Plan Budget(CIB)and Ten-Year
CIP presented to the
Engineering and Operations
Committee and Board
Staff reviews FY 2019-20 Public Hearing on
accomplishments and begins Public Hearing on adoption adoption of Capacity
June 2020 and Developer-Related
production of FY 2019-20 of final budget
Strategic Plan Annual Report Fees, Rates,and
Charges
Once the budget is adopted, the General Manager has the authority to spend within the respective
budgets. Payments are governed by the limits set in the General Manager Delegation of Authority
(Board Policy No. BP-038).
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Page 49 of 358
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$200,000 require
Board approval.
Spending is monitored monthly 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 year-end 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 Board action would be required to adopt an 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
$2.5 million contingency, which is subject to the same General Manager transfer limits. Transfers
above that amount, or the creation of a new, unbudgeted capital project, would require approval by
the Board.
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 claim expenses within
the self-insured retention ($500,000) during the fiscal year.
General Manager and Board roles in the administration of financial limits related to expenditures are
summarized in the two tables below:
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Capital Improvement Program Authorization Limits
Action General Manager Board of Directors
Approve Capital Improvement Plan and Capital
None No Limit
Improvement Budget(CIP/CIB)
Transfer Funds to Individual Project Budgets $500,000 or Less1 No Limit
Professional Consulting Services $100,000 or Less Greater than$100,000
Enter Into
Agreements Technical Consulting Services $100,000 or Less Greater than$100,000
Professional Engineering Services $100,000 or Less Greater than$100,000
Amend Agreements less than or equal to$2 million $100,000 or Less Greater than$100,000
Amend Agreements greater than$2 million $200,000 or Less Greater than$200,000
Transfer Funds from CIB Contingency Account to $200,000*or Less per
Projects Not Included in the CIB Pro jectz Greater than$200,000*
Authorize purchase of individual equipment items Up to Amount Specified in No limit
Equipment Budget
Authorize Supplemental Funds to Program No limit/Sewer Construction
Budgets and Contingency Account None Fund Balance
Award Construction Contracts3 $200,000*or Less Greater than$200,000*
Authorize Additive $200,000*or Less Greater than$200,000*
Construction
Change No Board Authorization
Orders Deductive No Limit Required
Authorize Subcontractor Substitutions All Substitutions Unless Substitutions Protested by
Protested by Subcontractor Subcontractor
Accept Construction Projects All Projects Informational Announcement
to the Board
Close Out Projects All Projects Memo Provided to the Board
at End of Fiscal Year
Acquire Easements $200,000 or less Greater than$200,000
1 Limited by the remaining balances of the applicable program and contingency account.
2 Limited bythe remaining balance of the applicable contingency account.
3 Bid protests and rejection of all bids must go to the Board with the exception of those under$200,000 and which
fall under the provisions of the California Uniform Public Construction Cost Accounting Act(UPCCAA)(§§22042
and 22042.5).
* These limits shall be raised concurrently with changes to the UPCCAA(California Public Contract Code§§22032(a),
representing the threshold above which formal bidding is required under the UPCCAA).
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Page 51 of 358
Contracting Authority Limits
Category of the Procurement
Value Goods and Services Professional Public Works Projects'
Consulting Services
>$0 General Manager
Delegated Authority'
>$0 and<_$200,000 General Manager General Manager
Delegated Authority Delegated Authority
>$200,000 Board Board
Authorization Required Authorization Required
Amending Agreements<_$2,000,000: General Manager General Manager
Changes less than$100,000 Delegated Authority Delegated Authority
Amending Agreements>$2,000,000: General Manager General Manager
Changes less than $200,000 Delegated Authority Delegated Authority
Amendments Causing Agreement total to Board Authorization
Exceed$200,000 Required
' The Board delegates authority to the General Manager,or their designee,to award and enter into contracts for goods
and services within the Board's adopted operating budget,excluding labor, provided purchasing policy and procedures
are adhered to.
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Strategic Plan Summary
Central San develops its Strategic Plans on a two-year cycle, while tracking progress quarterly and
producing performance reports annually. The Strategic Plans establish policy direction, outlines core
commitments, focus initiatives, and track performance with key performance metrics. This budget
relates to the first year in the FYs 2020-22 Strategic Plan and reports strategic accomplishments and
performance for the second year of the FYs 2018-20 Strategic Plan.
The development of the FYs 2020-22 Strategic Plan began with the Board's re-adoption of Central San's
Mission and adoption of revised Vision, Values, and Goals in December 2019. These updates
emphasized the agency's commitment to the environment, innovation, optimization, and continuous
improvement. Staff held a workshop the following month to update the FYs 2018-20 Strategic Plan to
reflect current priorities.
The Strategic Plan contains five components: Goals, Strategies, Initiatives, Key Success Measures, and
Metrics. The Strategies outline Central San's approach to achieve its Goals, overcome its challenges,
accomplish its mission, and meet the community's needs in the most efficient and effective ways. The
Initiatives describe the actions staff will take, and the Key Success Measures delineate the tasks to
fulfill those Initiatives. The Key Metrics set targets, track progress, and evaluate performance. To view
a complete copy of the Strategic Plan, please visit www.centralsan.org.
Starting with the development of the FYs 2016-18 Strategic Plan, staff has used the Effective Utility
Management (EUM) model as a tool to identify practices and procedures to improve operations and
move toward continued sustainability. The EUM framework was originally developed in 2007 by the
American Water Works Association (AWWA), U.S. Environmental Protection Agency (EPA), and nine
other association partners representing the U.S. water and wastewater sector. It consists of 10
attributes that provide succinct focus areas for effectively managed utilities and what they should
strive to achieve. These attributes are as follows:
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Page of i
Product Quality- Produces"fit for purpose" water that meets or exceeds full
May 21, 2020 Regular Board Meeting Agenda Packet2-qPage 160 of 505
compliance with regulatory and reliability requirements and is consistent with
customer, public health,ecological,and economic needs.
}` ��="� Customer Satisfaction- Provides reliable,responsive,and affordable services in line
,. with explicit,customer-derived service levels.
_�''�''" °"' [' Employee and Leadership be�elopment- Recruits and retains a workforce that is
,�, ; r� competent, motivated, adaptive,and safety focused.
�,�� ; Operational Optimization - Ensures ongoing,timely,cost-effective, reliable,and
ti,�,��! sustainable performance improvements in all facets of its operations in service to
aF, public health and environmental protection.
'=,_� Financial Viability- Understands the full life-cycle cost of utility operations and the
`L� value of water resources.
Infrastructure Strategy and Performance- Understands the condition of and costs
associated with critical infrastructure assets.
,���y Enterprise Resiliency- Ensures utility leadership and staff work together internally,
and with external partners, to anticipate, respond to, and avoid problems.
Community Sustainability-Takes an active leadership role in promoting and
organizing community sustainability improvements through collaboration with local
�-. partners.
Water Resource Sustainability- Ensures the availability and sustainable management
of water for its community and watershed, including water resource recovery.
Stakeholder Understanding and Support- Engenders understanding and support from
stakeholders, including customers, oversight bodies,community and watershed
;r '�_ interests,and regulatory bodies for service levels, rate structures, operating budgets,
capital improvement programs,and risk management decisions.
Page 54 of 358
Key Budget Priorities: 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 through its key budget priorities as
linked to the FYs 2020-22 Strategic Plan goals, as follows:
Key Budget Priority Primary I
Response
CUSTOMER AND COMMUNITY
Provide exceptional customer service and maintain an excellent reputation in the community
Balancing the need for Continue commitment to educating Public outreach, including the highly
financial resources against customers about required revenue and successful Central San Academy,student
impacts to the customer resources needed to replace aging education programs,facilities tours,
infrastructure and meet regulatory Pipeline community newsletter, and
requirements social media engagement
ENVIRONMENTAL STEWARDSHIP
Meet regulatory requirements and promote sustainability
Evolving regulatory Anticipate changing regulations and plan for Proactive participation with regulatory
requirements alternatives to maintain reliability and meet agencies and replacement of wet
requirements scrubber as part of the Solids Handing
Facilities Improvement Project
Maintaining a sustainable Partner with agencies to find creative water Continue pursuing the Refinery Recycled
water supply solutions benefiting the region and state,and Water Exchange Project to utilize
identify ways to maximize cost-effective recycled water at nearby refineries in
resource recovery and sustainability place of potable water to increase the
amount of potable water available to the
community
FISCAL RESPONSIBILITY
Manage finances wisely and prudently
Maintaining responsible Balance capital spending with affordability Financial planning to forecast needs and
rates at an affordable level and rate impact concerns,and offset sensible spending,as well as the
infrastructure replacement, regulatory continued push to become a more cost-
responses, and other expenses with effective and efficient operation
cost-saving efforts,efficiencies,
optimizations,and innovations
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Page 55 of 358
ResponseKey Budget Priority Primary
WORKFORCE DEVELOPMENT
Recruit,empower,and engage a highly trained and safe workforce
Driving employee Develop, retain,and equip high quality Employee recognition,training and
performance and rewarding employees with the tools needed to succeed development programs,outside
excellence conferences,and professional
association memberships to inspire
continuous education and improvement
INFRASTRUCTURE RELIABILITY
Maintain facilities and equipment to be dependable,resilient,and long lasting
Aging infrastructure and Make investments in capital improvement Major projects include the Solids
climate resiliency and internal resources to deliver on increased Handling Facility Improvements;
levels of capital spending Pumping Station Improvements, Phase 1;
Outfall Pipeline Inspection and
Improvements
INNOVATION AND OPTIMIZATION
Explore new technologies for continuous improvement
System optimization and Continue to champion and initiate projects Optimizations include the Steam and
utilization of Big Data through the Central San Smart initiative to Aeration Blower Systems Project to
optimize operations, improve asset evaluate efficiency options for one of the
management, increase energy efficiency and major energy sources of the treatment
safety, and reduce facility management costs process
Smart initiative projects include
optimization of treatment plant asset
handover process and development of
an asset health indicator tool
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Page Intentionally Blank
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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 primary internal sub-funds and three other funds and accounts as
described below:
Primary 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. Central San provides several services,
including wastewater treatment, to its customers and, by contract, to 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 its share of expenses related to projects
impacting the services the City has contracted with Central San to provide, proportional to flow.
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 2020-21, the Capital
Projects budget will be funded through current year rate collections (cash funded), as well as a
State of California Revolving Fund loan for the Solids Handling Facilities Improvements Project. The
Capital Projects section of this document provides a table showing the various sources of revenue
funding for each type of capital project.
• 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.
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• 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 2020-21 is $2.5 million, a
decrease of approximately$0.5 million from the $3.0 million budgeted in FY 2019-20. The debt
service reduction is in accordance with the amortization schedule of the 2018 bonds issued in
September 2018 to refund previously existing 2009 bonds. A portion of Central San's ad valorem
tax revenue is the primary funding source for the Debt Service Fund.
Other Funds and Accounts
Other tracking mechanisms to segregate funds restricted for specific purposes include:
• Pension Prefunding Trust Fund —This Section 115 secondary pension trust was established
by the Board in 2017. Deposits into or withdrawals from the trust require approval of the
Board of Directors. The trust does not have a specified target size. The trust holds assets
that would be available for use to meet pension obligations to the Contra Costa County
Employees' Retirement Association (CCCERA). For financial reporting purposes, this
budgetary "other fund" is consolidated into Central San's single entity enterprise fund
pursuant to generally accepted accounting principles (GAAP). However, for budgetary
purposes the Pension Prefunding Trust Fund is tracked separately due to its significance for
long-term financial planning and debt management.
• Other Post-Employment Benefits (OPEB)Trust Fund—This irrevocable trust was
established by the Board in 2009. Deposits into the trust requires Board approval. The
trust does not have a specified target size. The trust holds assets that are specified for
meeting employee related post-employment benefits, primarily retiree healthcare
coverage. For financial reporting purposes, effective FY 2020-21 pursuant to the
implementation of GASB 84, this budgetary "other fund" is no longer reported in Central
San's Comprehensive Annual Financial Report (CAFR) as a fiduciary fund. However, for
budgetary purposes the OPEB Trust Fund will continue to be tracked separately due to its
significance for long-term financial planning and debt management.
• Rate Stabilization Fund Reserve Account—This restricted-use account was authorized by
the 2018 Revenue Bonds and established by the Board in 2019. Deposits into the Rate
Stabilization Fund Reserve Account would reduce the revenues specified for calculating the
debt service coverage ratio metric, while withdrawals would increase revenues for
calculating that metric. Rate Stabilization Fund Reserve Accounts were created in both the
O&M Sub-Fund and the Sewer Construction Sub-Fund and use of proceeds held in the
accounts requires specific Board action. The accounts do not have specified target sizes.
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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 2018-19. 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, 2020, and June 30, 2021.
• 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 or loans.
• 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.
Other Significant Financial Accounts
• Rate Stabilization Fund Reserve Account—The 2018 Revenue Bond documents provided that
Central San could establish and fund a discretionary rate stability fund reserve account. During
FY 2019-20, the Board established a Rate Stabilization Fund Reserve Account, and made an initial
contribution of$2.61 million from available monies remaining from the financial close of
FY 2018-19. Rate Stabilization Fund Reserve Accounts were created within the O&M Sub-Fund and
the Sewer Construction Sub-Fund.
• Pension Prefunding Trust and OPEB Trust fund provisions are also described in the Financial
Reserves Policy. Investment Guideline documents also specify investment parameters to be
followed by the external investment manager.
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Basis for Budgeting
The basis for budgeting refers to the method of recognition of revenue and expenses in budgetary
reporting, which differs from the basis of accounting used in financial reporting. Central San's CAFR
provides detail about the actual expenditures of the four sub-funds in place as of June 30, 2019, in the
Central San enterprise fund reported on a full accrual basis of accounting. In contrast, Central San's
budgets are prepared on a modified cash flow basis which projects the District's cash inflow and
outflows over the course of a fiscal year (July 1 through June 30) excluding physical and intangible
assets such as depreciation expense. Revenues are recognized as they are received and accounted for
while obligations for expenditures are recognized when a commitment is made through an
encumbered purchase order or actual expense. As part of its implementation of a new ERP, Central
San plans to implement encumbrance accounting effective July 1, 2020.
Central San's accounts and transactions are tracked on a full accrual basis, which is the basis of
accounting under generally accepted accounting principles (GAAP). Under this method, all assets and
liabilities associated with operations are included on the balance sheet and revenues are recorded
when earnings and expenses are recorded at the time the commitments are incurred.
Depreciation and amortization are handled differently in budgetary reporting versus financial
reporting. In budgetary reporting, depreciation and amortization are excluded, and capital outlays as
well as the repayment of debt used to finance capital assets are included and reported as expenses. In
the financial reporting such as the CAFR, depreciation and amortization are included, and capital
outlays as well as the repayment of debt used to finance said capital assets are excluded for income
statement reporting purposes.
Pension and OPEB are also handled differently in budgetary reporting versus financial reporting. In
budgetary reporting, pension and OPEB expense adjustments as determined by actuarial reports are
excluded, and employer contributions to the underlying irrevocable plan trusts are included and
reported as expenses. In the financial reporting such as the CAFR, pension and OPEB expense
adjustments are included, and employer contributions to the underlying irrevocable plan trusts are
excluded for income statement reporting purposes.
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This table illustrates the differences between the budget and accounting basis as reflected on the
income statement as described previously:
ModifiedBUDGETARY ACCOUNTING
Revenues Recognized when received Recorded when earned
and accounted for
Obligations Recognized when a commitment Recorded at the time commitments
is made through are incurred (i.e.,services rendered
encumbrance or expense and/or goods delivered)
Depreciation and amortization Excluded Included
Capital outlays Included Excluded
Pension/OPEB expense Excluded Included
Pension/OPEB plan contributions Included Excluded
Debt service principal payments Included Excluded
Through this budget and its adoption by the Board, funds are appropriated to each of the sub-funds.
Each of the sub-funds presents a budget in the form of revenues, expenses, and an overall contribution
to or draw from reserves.
Central San 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.
Implementation of a New Chart of Accounts
This budget has also been prepared to reflect the updated chart of accounts designed by Central San as
part of the Oracle Cloud ERP project, which is scheduled to be in place during FY 2020-21. The new
chart of accounts is based on the previous chart of accounts with certain modifications to improve
parent-child relationship rollups and logical structure of both organizational units and accounts (i.e.,
expenses, revenues, etc.). The new chart of accounts is largely based on best practice guidance
published by the GFOA.
For this reason, there may be differences in expenditure line items and groupings in this book
compared to previous budget books. As a result of these changes, to improve comparability, certain
prior year expense categories have been reclassified in accordance with the new categories and
groupings. The total budget figures for the given years remain the same, but expenditures by category
may differ. Examples of changes include the following:
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Type of Change Examples
Movements of particular Board of Director fees and benefits were previously classified
expenditures from one category as"Other Expenditures". In this budget presentation, Board
to another fees are included in the"Salaries&Wages" parent category,
and Board benefits are in the Employee Benefits category,
although both continue to be tracked separately for
accounting purposes.
Changes in expenditure line • Professional & Legal Fees, Outside Services,and Repair&
items Maintenance Costs are now reallocated between two new
categories reported as"Purchased Property Services"and
"Other Purchased Services" pursuant to GFOA guidelines.
Changes in Organizational Units • Org Unit Splits—Some organization units have been split apart
to provide further detail. For example,the previously
reported budgetary organization unit"Office of the General
Manager&Office of the Secretary of the District" has been
split into several sub-categories for improved reporting
purposes. New sub-categories reported in the budget book
resulting from this change include:General Manager,
Secretary of the District, Board of Directors,and Director of
Finance&Administration.
• Creation of New Org Units—New organization units for
Directors have been created for each of Central San's three
departments to better reflect Central San's organizational
chart and to prevent Director-related costs from being
reported within one of the Departments' many child units as
was the case in prior budget books(i.e., Director of
Engineering&Technical Services was reported within the
Planning&Development Services Division previously).
• Consolidation of Org Units—The Safety organizational unit
reported in the prior year budget book has been consolidated
into the Human Resources division.
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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. 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 Debt Management Policy provides for
the conservative use of debt. The funding allocated toward 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 2018 Revenue Bonds. As of June 30, 2019, total outstanding debt
associated with infrastructure improvements was $19.45 million. As noted in the "Debt" section of this
document, borrowings under a State Revolving Fund loan are anticipated to begin in FY 2020-21 for the
Solids Handling Facilities Improvements Project. Central San's ten-year financial plan anticipates also
additional borrowing (subject to Board approval) which may be in the form of either revenue bonds or
an additional loan from the Clean Water State Revolving Fund and Water Recycling Funding Programs
of the State Water Resources Control Board.
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 0&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 the fall of 2019, 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,
apart from the OPEB Trust and Pension Prefunding Trust, which are governed by separate specific
investment guidelines also approved by the Board of Directors.
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.
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The GASB 45 (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 February 29, 2020, the GASB 45 (OPEB) Trust had a balance of
$67.9 million, up from the $58 million in the account one year earlier.
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 CCCERA, giving Central San greater
retirement payment flexibility in the future, while still reducing overall pension liability. As an example
of this flexibility, Central San could elect to draw down the Pension Prefunding Trust to meet its
payment obligations to CCCERA in order to smooth payment obligations and mitigate rate volatility.
Since its inception, additional payments to the Section 115 Pension Prefunding Trust included:
Year Amount Source
FY 2017-18 $2,000,000 Favorable year-end variance from FY 2016-17
FY 2018-19 $2,500,000 Budgeted funds in 0&M Budget
FY 2019-20 $1,250,000 Budgeted funds in 0&M Budget
As of February 29, 2020, the balance in the fund was $9.6 million.
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 the assumptions for setting rates for four years are more focused
on the first ten years.
The current financial plan reflects the proposed Ten-Year Capital Improvement Plan (CIP) spending
levels identified in the Comprehensive Wastewater Master Plan, as updated during periodic reviews of
the spending plan. The most recent review was presented at the March 12, 2020 Board Financial
Planning Workshop. The financial plan for FY 2020-21 estimated 0&M spending at $92.1 million and
capital spending at $96.8 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.
Once the proposed budget is adopted, the individual line items in the O&M portion of the financial
plan will be updated to reflect the final budget. The approved budget is then used as a baseline for
future years' planning.
Capital
The Ten-Year CIP was rolled forward one year (changing from $867 million to $878.7 million), then
inflated by 3%, to $902.1 million so that the total is stated in 2020 dollars. The amount was then
updated by reshaping cash flows over the ten-year period, while increasing overall spending by
$5.4 million. This results in a Ten-Year CIP of$907.5 million. This update reflects a detailed
assessment of Central San's latest needs and expected project timing. The Capital Improvement
section of this budget book provides detail about the FY 2020-21 capital budget and the Ten-Year CIP.
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Financial Summary
The FY 2020-21 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 2020-21 is $182.4 million, representing an increase of$24.5 million, or
15.6%,compared to the FY 2019-20 budget of$157.8 million, which changes by individual spending
category as follows:
• The FY 2020-21 O&M Budget is $90.7 million, an increase of$3.1 million from the current FY 2019-
20 budget of$87.6 million.
• The main driver of the increase in the total budget is a 33.0% increase in sewer construction
investment, from $66.2 million in FY 2019-20 to $88 million in FY 2020-21.
• Debt service is reduced by $0.5 million, a result of lower principal amortization compared to
FY 2019-20.
• The Self-Insurance Fund (SIF) is set at $1.2 million for the costs of premiums and estimated losses
based on historical trends and represents a slight increase from the $1.1 million funding level of the
FY 2019-20 Budget.
Table 1 — FY 2020-21 Total Budget
Expenditures Trend
Fund FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21 Budgetto %
Budget Actual Budget Budget Budget Variance Variance
Operations and
Maintenance $89,720,456 $85,342,786 $87,584,775 $90,666,338 $3,081,563 3.5%
(0&M)
Sewer Construction 45,319,000 36,696,049 66,176,000 88,024,000 21,848,000 33.0%
Debt Service 3,611,038 3,505,006 2,982,415 2,517,605 (464,810) -15.6%
Self-Insurance 924,500 697,793 1,073,700 1,153,500 79,800 7.4%
Total Budget $139,574,994 $126,241,634 $157,816,890 $182,361,443 $24,544,553 15.6%
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Sources of Funds
The sources of funds (revenues) for FY 2020-21 are shown in Figure 1. A comparison of the major
revenue sources for FY 2020-21, the current year, and prior years is shown in Figure 2.
Figure 1 - Total Funding Sources - FY 2020-21 Proposed Budget
FY 2020-21 Total Budgeted Funding Sources of$182,361,443
Draw from Reserves
(See Table 14), Loan Proceeds, Household Hazardous
$10,526,188 \$3,000,000 Waste, $1,064,000
Other Sources, Recycled Water,
$5,203,650 $420,000
Capacity Fees,
$6,000,000
Tax Revenue,
$18,457,605 Sewer Service Charge,
$106,630,000
City of Concord,
$31,060,000
Figure 2 - Total Funding Sources - Three-Year Budget Comparison
FY 2018-19 FY 2019-20 FY 2020-21
$147,386,287 $159,166,815 $182,361,443
Sources of Funds
5120,000,000
$100,000,000
ssoAK000
SK00a.000
$40.000,a00
520.000,000 , MEN
Sewer Service City of CorKord Properly Tax Capacity Fees Allpther Swces loan Proceeds Dray from
Charge Revenue Reserves{see
Table 14)
O FY 2018.19 Budget ■FY 2019-20 Budget ■FY 2020-21 Budget
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The SSC is the largest source of revenue for FY 2020-21 at $106.6 million, followed by the
City of Concord at $31.1 million, ad valorem property tax at $18.5 million, and Capacity Fees at
$6 million. All other sources of revenue are $6.7 million. Non-revenue sources of funds for
FY 2020-21 include use of reserves at $10.5 million (see Table 14 for detail), and expected
borrowing of$3 million. They are described elsewhere in this section.
A brief description of Central San's revenue sources and how they are forecasted follows:
• Sewer Service Charge (SSC)— Each customer in Central San's service area pays the SSC, which
applies to both residential and non-residential customers. It is assessed annually on the customer's
property tax bill, or, for those customers who do not receive a property tax bill, billed directly by
Central San, to pay for the collection and treatment of wastewater. The SSC 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. SSCs 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 reviews 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 forecast 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 Capital Improvement Program.
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 result 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
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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. Other internal use of Recycled Water is not included in reported revenues, but a
calculated ascribed value of this water based on production costs is shown in the Operating
Departments section of this document under the Recycled Water division discussion.
• All Other Revenue Sources—This includes the following:
o Permit and Inspection Fees—These are 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
year.
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 forecast cash levels multiplied by estimated interest rates
over the course of the fiscal year. Given the Federal Reserve's measures in March 2020,
interest income is expected to be below FY 2019-20 levels.
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 or expansion in areas where Pump Stations 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.
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• 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 reverse is true. Table 14 shows the reserve status by sub-fund and overall
status of the Central San Enterprise Fund.
• Loan Proceeds- Use of anticipated borrowing proceeds to fund the Capital Improvement Budget,
of$3 million, for FY 2020-21 is shown in Table 13.
Tables 2 and 2a below show the overall funding sources of Central San and how those funding sources
are applied to each sub-fund for FY 2020-21 and FY 2019-20.
Table 2 -Allocation of Funds - FY 2020-21 Budget
Funding Sources
Fund 10 Fund 20 Fund 30 Fund 40 Total
FY
i O&M F Capital Self- Debt Service FY 2020-21
Insurance Budget
Sewer Service Charge $45,832,911 $60,797,089 $- $- $106,630,000
City of Concord 15,760,000 15,300,000 - - 31,060,000
Tax Revenue - 15,940,000 - 2,517,605 18,457,605
Capacity Fees - 6,000,000 - - 6,000,000
HHW Reimbursement 1,064,000 - - - 1,064,000
Recycled Water 420,000 - - - 420,000
Other Revenue Sources Including:
Permit&Inspection Fees 1,952,400 - - - 1,952,400
Lease Rental Income 719,000 - - - 719,000
Stormwater/Pollution Prevention 390,000 - - - 390,000
Interest Income 190,000 293,500 112,050 - 595,550
Developer Fees - 484,000 - - 484,000
Pumped Zone Fees - 262,000 - - 262,000
Other 409,000 - 470,000 - 879,000
Total Other Revenue Sources $3,660,400 $1,039,500 $582,050 $- $5,281,950
Subtotal Funding Sources prior to $66,737,311 $99,076,589 $582,050 $2,517,605 $168,913,555
Reserve Draws and Loan Proceeds
Use of(or Contribution to) Reserves $23,929,027 $(14,052,589) $571,450 $- $10,447,888
(See Table 14)
State Revolving Fund Loan 3,000,000 - - $3,000,000
Proceeds
Total Funding Sources $90,666,338 $88,024,000 $1,153,500 $2,517,605 $182,361,443
* Fund numbers correspond to the fund designations in the new chart of accounts to be implemented July 1, 2020.
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Table 2a -Allocation of Funds - FY 2019-20 Budget
Fund 10 Fund 20 Fund 30 Fund 40 Total
Funding Sources---,, Proposed
a: a RW Debt Service FY 2020-21 r U-
Sewer Service Charge $69,090,870 $32,219,130 $- $- $101,310,000
City of Concord 14,570,000 11,630,000 - - 26,200,000
Tax Revenue - 14,520,000 - 2,982,415 17,502,415
Capacity Fees - 5,750,000 - - 5,750,000
HHW Reimbursement 968,000 - - - 968,000
Recycled Water 420,000 - - - 420,000
Other Revenue Sources Including: - - - - -
Permit& Inspection Fees 1,870,000 - - - 1,870,000
Lease Rental Income 703,500 - - - 703,500
Stormwater/Pollution Prevention 370,000 - - - 370,000
Interest Income 1,231,000 674,000 179,900 - 1,803,900
Developer Fees - 514,000 - - 514,000
Pumped Zone Fees - 291,000 - - 291,000
Other 337,000 - 846,000 - 1,183,000
Total Other Revenue Sources $4,230,500 $1,479,000 $1,025,900 $- $6,735,400
Total Funding Sources $89,560,370 $65,598,130 $1,025,900 $2,982,415 $159,166,815
* Fund numbers correspond to the fund designations in the new chart of accounts to be implemented July 1,2020.
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Sewer Service Charge
Tables 3 and 4 show the SSC for FY 2020-21 compared to the FY 2019-20 rates for residential and
non-residential customers. These rates were approved by the Board after a public hearing on
April 18, 2019, through the adoption of a four-year rate ordinance. Since then, two financial
workshops have been held (on November 4, 2019, and March 12, 2020) to discuss Central San's
financial outlook and to receive preliminary Board direction on key financial planning matters. As
committed to in the adoption of the four-year rate ordinance, the Board on April 16, 2020, deliberated
on whether to adjust the previously adopted rates for FY 2020-21, with no changes made.
Table 3 -Approved Annual SSC-Residential
Customer Type FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Single Family Residence $503 $530 $567 $598 $629
Other Residences—Apartments,
Condominiums, Duplexes,Second $487 $513 $549 $566 $596
Living Units, Mobile Homes
Effective Date 07/01/16 07/01/17 07/01/18 7/01/19 7/01/20
In April 2019, the Board approved the consolidation of most of Central San's prior non-residential
customer classes into five classes (shown below) based on combined strength limits, defined as the
sum of biochemical oxygen demand and total suspended solids. These customer classes are now
"Low," "Medium-Low," "Medium," "Medium-High," and "High" and fairly charge those customers for
the proportionate cost of collecting and treating their wastewater, based on an updated cost of
service study competed in FY 2018-19. The change was effective July 1, 2019.
Table 4 -Approved Annual SSC-Non-Residential
User Group Description Combined Strength FY 2019-20 FY 2020-21
Limits
Low Non-residential uses not listed below Up to 350 mg/I $6.23 $6.56
(no food service)
Food service without Type 1 hood,
Medium-Low shared water meter with less than 50% 351 to 700 mg/I $6.72 $8.05
food service
Shared water meter with 50%or greater 701 to
Medium food service 1,000 mg/I $9.59 $10.09
Food service with Type 1 hood,
supermarkets, hotels and motels with 1,001 to
Medium-High $10.70 $11.26
food service,shared water meters with 1,300 mg/I
bakery
Mortuaries, bakeries, restaurants with Greater than
High grinders or emulsifiers, breweries with 1,300 mg/I $14.18 $14.92
Best Management Practices permit
Minimum
Annual $566.00 $596.00
Charge
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Customer Type FY 2019-20 FY 2020-21
Schools
Schools—Daycare, Preschool, University(per hundred cubic feet) $6.23 $6.56
Schools—Elementary(per student) $7.43 $7.82
Schools—Intermediate and High School (per student) $14.68 $15.45
Industrial Permit(including food processing)
Wastewater Flow(per hundred cubic feet) $4.82 $5.08
Biological Oxygen Demand (BOD) (per 1,000 pounds) $1,275.00 $1,342.00
Total Suspended Solids(TSS)(per 1,000 pounds) $666.00 $701.00
Fixed $93.69 $98.61
Special Discharge Permits and Contractual Agreements Determined Determined
Individually Individually
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/11 351 to 700 mg/I 701 to 1,000 mg/ 1,001 to 1,300 mg/I Over 1,300 mg/I
Std.Commercial <50%Food Supermarkets Bakeries
Food
Delicatessens
Restaurants with
Churches Restaurants Concentrators,
L Yogurt Shops Mixed-Use L Grinders _A
...
Schools:Daycare,
Shops
..
Hotels with Food Restaurants with
Breweries
Automotive,
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 31.8% in FY 2019-20 to 57.0% in
FY 2020-21. All the revenue generated by the FY 2020-21 SSC rate increases will be directed to the CIP
and will be used to fund capital spending in FY 2020-21 and subsequent years.
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Table 5 -Allocation of SSC
Budget Actual Budget Budget
To O&M $67,073,732 70.6% $68,656,908 70.6% $69,090,870 68.2% $45,832,911 43.0% ($23,257,959)
To Capital $27,926,268 29.4% $28,588,625 29.4% $32,219,130 31.8% $60,797,089 57.0% $28,577,959
Total 533 100%245
000 100.0% $97
000
$95, , , , °
Collected $101,310,000 100.0/ $106,630,000 100.0% $5,320,000
The allocation of SSC between O&M and capital fluctuates each year, and is based on spending
levels, other revenue sources, and reserve balances in each fund. The significant decrease in
the proportion of total SSC being allocated to the O&M fund is attributable to a projected $26.6
million in 0&M working capital reserves above the policy required level available as of
June 30, 2020. This amount is attributable to several factors, including lower than anticipated
spending and higher than anticipated revenues in FY 2019-20, and a revision in the reserve
definition. In November 2019, the Board of Directors approved an amendment to the District's
Fiscal Reserves Policy, which in addition to other changes, clarified the definition of"working
capital" to include other current assets and liabilities, in addition to unrestricted cash and
investments, pursuant to best practice guidance published by the GFOA. The largest
component of net increase in available working capital reserves of the O&M fund is the
inclusion of current accounts receivable of$15 million, which includes the significant receivable
due from the City of Concord for treatment services on the books at the close of each fiscal
year, but which relates to the prior year. As a one-time transitional issue, this change in reserve
definition has limited impacts on long-term financial planning and rate setting as the inclusion
of this current receivable asset largely addresses a year-to-year payment timing issue. Refer to
Table 14 for additional information on Reserves.
Uses of Funds
The uses of funds (expenditures and contributions to reserves) for FY 2020-21 are shown in Figure 3.
Two expenditure categories, O&M and Sewer Construction, account for 97% of the total uses. In
FY 2020-21, a contribution to reserves comprises 1% of the total use of funds. These funds will be
applied to the Sewer Construction Fund (Capital Improvement Program) to help offset the need for
related to the increased capital spending planned for FY 2020-21 and future years.
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Figure 3 - Total Funding Uses - FY 2020-21 Budget
Total FY 2020-21 Budgeted Expenditures and Contributions of Reserves: $182,361,443
Self-insurance,
Debt Service, $1,153,500,1%
$2,517,605,1%
operations and
Maintenance,
Sewer Construction(CIP), $90,666,338,SO%
$88,024,000,48%
FY 2020-21 Total Funding Uses
The uses of funds for three budgeted years are shown in Figure 4.
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Figure 4 - Where the Money Goes
FY 2018-19 FY 2019-20 FY 2020-21
$147,386,287 $159,166,815 $182,361,443
Use of Funds
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
Operations and Sewer Construction Debt Service Self-Insurance Contribution to(Use
Maintenance (CIP) of) Reserves
■FY 2018-19 Budget ■FY 2019-20 Budget ■FY 2020-21 Budget
Operations &Maintenance Budget Overview
The total O&M revenue for FY 2020-21 is projected to be $66.7 million, compared to the FY 2019-20
budget amount of$86.9 million, as shown in Table 6.
Table 6 - FY 2020-21 Budgeted 0&M Revenues
FY 2018-19 019-20 FY 2019-20 FY 2020-21 Budgetto %
WB2.dg."t § Actual Budget Projected Budget Variance Variance
O&M Revenue
Sewer Service Charge $67,073,732 $75,824,221 $69,090,870 $70,270,344 $45,832,911 ($23,257,959) -33.7%
City of Concord 14,800,000 14,973,623 14,570,000 15,460,000 15,760,000 1,190,000 8.2%
Permit&Inspection Fees 1,783,000 2,091,062 1,870,000 2,031,000 1,952,400 82,400 4.4%
Lease Rental Income 627,000 619,317 703,500 713,000 719,000 15,500 2.2%
HHW Reimbursement 929,000 899,723 968,000 953,000 1,064,000 96,000 9.9%
Stormwater/Pollution 360,000 421,022 370,000 400,000 390,000 20,000 5.4%
Prevention
Interest Income 600,000 230,042 1,231,000 555,000 190,000 (1,041,000) -84.6%
Recycled Water 420,000 466,960 420,000 488,000 420,000 - 0.0%
Other 333,000 439,015 337,000 390,500 409,000 72,000 21.4%
Total Revenue $86,925,732 $95,964,985 $89,560,370 $91,260,844 $66,737,311 ($22,823,059) -25.5%
O&M revenue decreases by $22.8 million, or 25.5%, due primarily to the following:
• In November 2019, the Board approved a revised Fiscal Reserve Policy, which amongst other
matters clarified the definition and calculation of"minimum working capital" to include other
elements of the balance sheet beyond unrestricted cash and investments in line with GFOA
recommended best practices. Pursuant to this revision, O&M reserves are projected to exceed the
minimum working capital reserve requirement as of June 30, 2020, providing for a draw-down of
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excess reserve funds of$23.9 million while still maintaining the projected minimum working capital
reserve balance of five-twelfths (5/12) the following year's budget for FY 2020-21. This has the
positive outcome of being able to allocate a larger proportion of FY 2020-21 SSC revenues to the
Sewer Construction Fund for much needed long-term capital investment purposes.
• While system-wide average SSC rates are increasing by 5.25% effective July 1, 2020, the O&M
allocation of the SSC decreases from 68.2% in FY 2019-20 to 43% in FY 2020-21, with the amount
allocated to capital projects increasing from 31.8%to 57%.
• 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 toward 0&M costs is expected to be $14.6 million in
FY 2020-21, a 1.6% decrease compared to $14.8 million in FY 2019-20. 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.
• Decrease in forecasted interest income due to Federal Reserve rate actions in early 2020.
As shown in Table 7, total O&M expenses are projected to be $90.7 million in FY 2020-21, an increase
of$3.1 million from the $87.6 million budget in FY 2019-20. This figure includes the costs related to 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), with only a modest increase above $90 million for
FY 2020-21. The budget continues to provide funding for strategic initiatives and key activities. Table 7
and Figure 5 show the FY 2020-21 O&M Budget by expense category. Significant savings from a
transition to CalPERS health benefits has enabled this reduction in O&M spending, despite inflationary
pressures in other expense categories.
O&M salaries and benefits (labeled categories A and B in the table) comprise 59% (56.3%for active and
2.7%for retirees) of the overall O&M Budget. Contributions toward unfunded liabilities (category C)
are another 14.8%. Salary, benefit, and Unfunded Actuarial Accrued Liability (UAAL) related costs are
73.8% of the O&M Budget. All other expenses (category D) comprise 26.2%.
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Table 7 - FY 2020-21 Bud eted O&M Expenditures and Contribution to Reserve
2019-20 FY 2020-21 Budgetto % FY 2020-2
Budget
Projected Budget Variance %of Total]
A.Salaries&Wages
Salaries&Wages $36,075,687 $35,830,512 $38,565,093 $36,932,653 $39,543,191 $978,098 2.5% 43.6%
B.Benefits
Benefits&Capital $13,115,332 $13,227,221 $11,982,565 $11,634,912 $11,545,173 ($437,392) 3.7% 12.7%
Overhead Credit
Salary&Benefits $49,191,019 $49,057,733 $50,547,658 $48,567,565 $51,088,364 $540,706 1.1%
(Active Employees)
B.Benefits(continued)
Benefits(Retirees) $5,100,284 $4,934,255 $2,346,076 $2,314,000 $2,451,000 $104,924 4.5% 2.7%
C.UAAL
Retirement UAAL/ $10,720,478 $11,206,313 $11,186,841 $11,254,802 $12,126,016 $939,175 8.4%
Unfunded Liabilities
Additional UAAL $2,500,000 $2,500,000 $1,250,000 $1,250,000 $1,250,000 $0 0.0%
Contributions
Total UAAL/Unfunded $13,220,478 $13,706,313 $12,436,841 $12,504,802 $13,376,016 $939,175 7.6% 14.8%
Liabilities
Total Labor Related Costs $67,511,781 $67,698,301 $65,330,575 $63,386,367 $66,915,380 $1,584,805 2.4%
A+B+C
D.Other O&M Expenses
Purchased Property $5,415,371 $4,787,875 $4,483,744 $4,566,303 $6,334,577 $1,850,833 41.3% 7.0%
Services
Other Purchased $5,670,507 $4,415,486 $6,418,232 $5,310,202 $6,305,477 ($112,755) -1.8% 7.0%
Services
Supplies&Materials $9,095,174 $9,335,587 $9,322,677 $9,156,583 $9,466,300 $143,623 1.5% 10.4%
Other Expenses $1,248,123 $826,032 $1,204,547 $994,390 $1,194,604 ($9,943) -0.8% 1.3%
Other Expenses-Self $779,500 $779,505 $825,000 $825,000 $450,000 ($375,000) -45.5% 0.5%
Insurance
**Total Other O&M $22,208,675 $20,144,485 $22,254,200 $20,852,478 $23,750,958 $1,496,758 6.7% 26.2%
Total Expenditures $88,137,656 $86,259,986 $87,584,775 $84,238,845 $90,666,338 $3,081,563 3.5% 100.0%
Contribution to Reserve ($2,794,724) $2,534,317 $1,975,595 $7,021,999 ($23,929,027) ($25,904,622) -157.6%
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Figure 5 - FY 2020-21 Budgeted O&M Expenditures
D.Other Expenses,1.3%,
D.Supplies&Materials, D.Other Expenses-Self Insurance,0.5%
10.4%
D.Other Purchased Services,
7.0%
A.Salaries&Wages,43.b%
D.Purchased Property
Services,7.0%
C.Total UAAL 1 Unfunded
Liabilities,14.8%
r
B.Benefits(Retirees),2.7%1 B.Benefits&Cap OJH Credit,
12.7%
Variances in the Operations &Maintenance Budget
O&M costs overall increase from FY 2019-20 to FY 2020-21 by$3.1 million or 3.5%. Salaries increase
by $1 million, and UAAL costs increase by$0.9 million, which are offset in part by benefit and retiree
cost decreases of$0.3 million. These changes are discussed below and illustrated in Figure 6.
Figure 6 — 0&M Cost Comparison by Year
S45.000,000
540.000,00o
535,000,000 I
$30.000,000
$25,000,000
$20.000,000
515,000,000
$10,000,000
55.000000
SO
� x
a FY 2018-19 Budget a o a W
a a a r
■FY2018-19Actual m d a c 0
V ❑
N FY 2019-20 Budget
s
■FY 2019-20 Projected v
■FY 2020-21 Budget
The lettered expense categories in the chart correspond to the descriptions below.
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A. O&M Salaries &Wages
Central San's budgeted salaries are $39.5 million in FY 2020-21, compared to $38.6 million in
FY 2019-20, representing an increase of$0.9 million, or 2.5%. The increase reflects the 2.9% salary
adjustment effective April 2020, and assumed salary adjustment effective April 2021 of 3.75% (the
actual adjustment will be based on the Bay Area Consumer Price Index change from February 2020
to February 2021), and step increases for newer employees. The vacancy factor of 3.25% is
unchanged from the prior year.
B. Benefits and Capitalized Overhead
Total benefits and capitalized labor decreased from $14.3 million in FY 2019-20 to $14 million in
FY2020-21, which are discussed as follows:
Table 7a— Benefits and Capitalized Overhead Detail
FY iBudget %Change
Budget Variance
Benefits for Active Employees $16,430,934 $16,628,569 $197,635 1.2%
Capitalized Administrative ($4,448,369) ($5,083,396) ($635,027) 14.3%
Overhead
Subtotal, Benefits for Active
Employees net of Capitalized $11,982,565 $11,545,173 ($437,392) 3.7%
Administrative Overhead
Benefits for Retirees $2,346,076 $2,451,000 $104,924 4.5%
Total Active and Retiree Benefits $14,328,641 $13,996,173 ($332,468) (2.3%)
Benefits for active employees comprise healthcare costs, workers' compensation costs, payroll
taxes, normal costs for pension and OPEB costs, and benefit vacancy factor. These costs were
$16.4 million in the FY 2019-20 budget and rise to $16.6 million in the FY 2020-21 budget, which
represents a 1.2% increase.
• Previously, compensated absence payouts were included in this grouping, but have now been
moved to O&M salaries and wages.
• The transition to CalPERS for medical benefits for active and retired employees was completed
effective July 1, 2019, resulting in savings of approximately $5.5 million annually.
Changes in benefit cost 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.
• CaIPERS Medical— No rate increase for the six months starting July 2020 and a 7.25% rate increase
is assumed for the six months starting January 2021.
• CCCERA—The retirement normal cost contribution rate is decreasing 6.7%for legacy employees
and increasing 2.1%for Public Employees' Pension Reform Act employees.
• Delta Dental— No rate increase for the six months starting July 2020 and a 3.75% rate increase is
assumed for the six months starting January 2021.
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• Vision — No rate increase for the six months starting July 2020 and a 3% rate increase is
assumed for the six months starting January 2021.
• Long-Term Disability— No rate increase for the six months starting July 2020 and a 3% rate
increase is assumed for the six months starting January 2021.
• Employee Assistance Program— No rate increase for the six months starting July 2020 and a 3%
rate increase is assumed for the six months starting January 2021.
• Workers' Compensation—A 10% rate increase was assumed for budget purposes. The actual
rates have not been finalized. No adjustments were made to the Experience Modification Factor
that adjusts the gross rate of the collective pool to the member agency.
• Life Insurance— No rate increase for the six months starting July 2020 and a 3% rate increase is
assumed for the six months starting January 2021.
The Capitalized Administrative Overhead rate, a credit given for capital work to the 0&M Budget
for non-work hours and overhead, changes from $4.4 million to $5.1 million in FY 2020-21,
representing an increasing effort on internal labor allocated to the Capital Budget.
Benefits for retirees, consisting of health, dental, life, and vision costs increase from $2.3 million in
FY 2019-20 to $2.4 million in FY2020-21.
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. An unfunded liability may occur when those economic/demographic
assumptions are not met, those assumptions are changed, and/or the level of pension/benefits is
adjusted.
Overall contributions toward unfunded liabilities increase from $12.4 million in FY 2019-20 to $13.4
million in FY 2020-21, representing an increase of$0.94 million, or 7.6%.
The pension unfunded liability expense to be paid to CCCERA is $12.1 million in FY 2020-21, which,
compared to the budget of$11.2 million in FY 2019-20, is an increase of$0.94 million, or 8.4%. The
UAAL payment does not yet reflect any impact on pension assets that the market downturn of
March 2020 may cause. If persisting through the December 2020 valuation, UAAL payments could
be impacted in FY 2021-22.
The budget also includes $1.25 million to be paid toward the unfunded liabilities for either pension
or OPEB obligations, to be determined by the Board during the fiscal year. This is a continuation of
the $1.25 million budgeted in FY 2019-20. To the extent that budget savings are available with the
completion of both FY 2019-20 and FY 2020-21, the Board may choose to direct part of the savings
toward additional unfunded liabilities funding.
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D. All Other O&M Expenses
The remaining O&M non-labor expenses increase from 22.3 million in FY 2019-20 to $23.8 million
in FY 2020-21, an increase of 6.7%. Additional information is included in the individual division
budgets. The areas of most significant change include the following:
• Purchased Property Services—This expense category is reporting an increase of$1,850,833, or
41.3%, largely resulting from increases in repairs & maintenance and security services.
Increases in repairs & maintenance were largely attributable to new support and licensing costs
for the new state-of-the-art ERP system expected to "go live" July 1, 2020, as well as security
services being reclassified from the "Other Purchased Services" expense category pursuant to
the new ERP's revised chart of accounts. Finally, greatly expanded on-site security measures
will be necessary to counteract the significant increase in non-employee foot traffic on the
treatment plant premises in conjunction with large scale treatment plant improvement projects
planned next year.
• Other Purchased Services—This expense decreased by$112,755, or 1.8%, due to costs for
professional and technical services remaining steady overall with the increase in costs expected
from the 2020 election largely being offset by reclassifying security services under the
"Purchased Property Services" category pursuant to the new chart of accounts.
• Supplies & Materials—This expense increased marginally by$144,000, or 1.5%. Despite
increases in general supplies and utilities &fuel costs, these increases were largely offset by
savings realized in chemicals costs through the elimination of sodium hydroxide in the sewage
treatment process.
• Other Expenses—This expense decreased by $384,713, or 18.96%, reflecting a primarily caused
by a decreased allocation from the O&M fund to cover anticipated estimated loss payments,
legal services, and insurance premiums.
Technical Training, Conferences, & Meetings—These costs are included in the Other Expenses
category described previously and increased by $30,175, or 8%, 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, & Meetings.
Table 8 — Technical Training, Conferences, &Meetings
FY 2018-19 FY 2019-20 FY 2020-21 Variance %
Budget Budget Budget from Variance
FY 2019-20
Board of Directors $45,000 $40,000 $40,000 $- -%
Administration Department 107,900 119,700 118,750 (950) -1%
Engineering Department 100,325 107,425 114,950 7,525 7%
Operations Department 104,600 113,500 134,100 20,600 18%
Total $371,825 $394,625 $424,800 $30,175 8%
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Operations &Maintenance Budget by Operating Department
Table 9 and Figure 7 provide a summary of the operating budgets by department. Further details
are included in the Operating Departments Section.
Table 9 - 0&M Bud et by Department
F
dministration
fice of the General Manager $1,270,856 $1,256,560 $1,346,519 $1,277,219 $1,501,579 $155,060 12%
fice of the Secretary of the 857,684 848,097 904,112 1,063,449 998,779 94,667 10%
District
Board of Directors 535,494 489,493 255,650 280,100 564,029 308,379 121%
Office of the Director of Finance 697,227 664,884 691,713 512,508 579,032 (112,680) -16%
&Administration
Communications Services and 2,094,427 1,815,028 1,980,908 1,836,302 2,128,081 147,173 7%
Intergovernmental Relations
Finance 2,442,604 1,834,946 2,409,374 1,818,584 2,256,811 (152,563) -6%
Human Resources/Retirees/ 12,674,862 13,206,508 8,558,360 7,987,416 8,958,488 400,128 5%
Safety
Information Technology 4,137,334 3,888,148 4,093,590 3,718,148 4,527,320 433,730 11%
Purchasing and Material 2,051,286 1,747,571 2,123,488 1,758,518 2,006,169 (117,319) -6%
Services
Risk Management 1,823,308 1,648,664 1,867,875 1,822,529 1,628,463 (239,412) -13%
Total $28,585,082 $27,399,899 $24,231,589 $22,074,773 $25,148,751 $917,162 4%
Engineering and Technical Services
Office of the Director of
Engineering&Technical $634,658 $640,153 $616,058 $481,748 $1,132,683 $516,625 84%
Services
Capital Projects Division 835,854 543,322 455,841 462,718 883,170 427,329 94%
Environmental and Regulatory 8,397,399 8,302,380 8,628,203 8,668,923 9,159,765 531,562 6%
Compliance Division
Planning and Development 7,165,497 6,848,387 7,163,840 7,129,505 7,447,765 283,925 4%
Services Division
Total $17,033,408 $16,334,241 $16,863,942 $16,742,894 $18,623,383 $1,759,441 30%
Operations
Office of the Director of $527,271 $502,625 $550,579 $801,534 $1,035,340 $484,761 88%
Operations
Collection System Operations 13,960,060 13,977,517 14,750,139 14,364,491 14,916,566 166,427 1%
Plant Maintenance 13,156,196 13,777,733 14,439,069 14,434,709 13,811,530 (627,539) -4%
Plant Operations 14,905,646 14,660,852 15,141,109 14,554,183 15,659,478 518,369 3%
Recycled Water Program 1,552,792 1,189,918 1,608,348 1,266,261 1,471,290 (137,058) -9%
Total $44,101,966 $44,108,645 $46,489,244 $45,421,178 $46,894,204 $404,960 1%
Total All Departments $89,720,456 $87,842,786 $87,584,775 $84,238,845 $90,666,338 1 $3,081,563 4%
* Some significant variances are related to the reallocation of costs as new organizational units were created for FY 220-21.
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Figure 7 - FY 2020-21 O&M Budget by Function
535,000.000
$30,000,000
$25,000,006
526.060,0 00
$15,600,000
$10.600,040
$5,000,000
50 �r
EneireertnC and colect+on 5vstern Pant Operatrons, Re[yc[ed Water
Adminilrttion Tec hn[aI Serves Operations ~KenarKe. Program
Department Dvaior of Ops �`
r 018.19 800¢et 528,585,082 517,033.408 S13.960,060 528.589.114 51,552.79
j4Fr2019-20avdget 524.231,589 S16,863,942 514.750.139 530.130,757 S1,6O8.348
WFY2020-219erdcet 525,148,751 $18,623,383 514,916,566 530,506,3.8 $1,471,290
The substantial reduction in Administration costs is primarily related to the $4.3 million reduction in
retiree benefits, unfunded liabilities payments, and additional unfunded liabilities payment that are
budgeted in the Human Resources division.
Historical Variances in Operations &Maintenance Spending
Figure 8 shows historic O&M budgeted and actual amounts, and actual spending as a percentage of
budget. There have been variances averaging 3.9% (spending was 96.1% of budget) over the last five
years (with variances averaging 3.4% since FY 2004-05).
Figure 8 - Historic O&M Budget versus Actual Spending in Millions (Multi-Year Trend)
$100 100%
$90
$80 95%
$70
$60 90%
$50 85%
$40
$30 80%
$20$10 — 75%
$0 70%
Oh OrO 01 OW oo ti0 ,y'y ,y'L ,y'� ,yp, ,yh ,yco ,y1 ,yg ,yon �O.
OA Oh OrO 01 O� Oji y0 yN; yIV y11jr yR yh tiG y1\1 yR yoi
,ti0 ,ti0 ,ti0 ,LO ,LO .LO ,LO ,y0 ,ti0 ,ti0 ,ti0 ,ti0 ,LO ,LO ,LO ,LO
BUDGET ACTUAL Achievement%
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Staffing, Salaries,and Benefits (Costs included in both O&M and Sewer Construction)
Total labor, benefit, and UAAL related costs increases by$3 million, or 4%, from $74.7 million in
FY 2019-20 to $77.8 million in FY 2020-21.
Total salaries and benefits for active employees are budgeted at $62 million in FY 2020-21, including
both the O&M Fund and the Sewer Construction Fund, compared to $60 million in FY 2019-20, a $2
million increase. Benefits for retirees are projected to be $2.4 million in FY 2020-21, compared to $2.3
million in FY 2019-20. Costs of unfunded liabilities for pension and OPEB (which relate to both active
employees and retirees) are $13.4 million, up from $12.4 million in FY 2019-20.
Major factors affecting overall salaries and benefits include the following:
• Cost of living adjustment of 2.9%, which is the primary component of the overall salary line item
increase of 3.4%. Other components include funding for step increases/promotions.
• Additional overtime of$0.2 million, an increase of 14%
• Adjustment in overall benefit costs of 1.8%
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
FY 2020-21 Budget Operations& Sewer Total
Maintenance Construction
Active Employees
Budgeted Full-Time Employee Positions(Estimated Allocation)* 264.6 28.4 293.0
Budgeted Salaries&Wages $39,543,191 $4,247,300 $43,790,491
Budgeted Benefits 16,628,569 1,541,914 18,170,483
Capitalized Admin Overhead ** (5,083,396) 5,083,396 -
Benefits After Capitalized Administrative Overhead 11,545,173 6,625,310 18,170,483
Total Costs Active Employees*** $51,088,364 $10,872,610 $61,960,974
Retiree Costs and Unfunded Liabilities
Retiree Benefit Costs for OPEB $2,451,000 $- $2,451,000
UAAL/Unfunded Liabilities for Pension 13,376,016 - 13,376,016
Total Retiree Costs and Unfunded Liabilities $15,827,016 $- $15,827,016
Total Labor Related Costs $66,915,380 $10,872,610 $77,787,990
FY 2019-20 Budget Operations& Sewer Total
Maintenance Construction
Active Employee Costs
Budgeted Full-Time Employee Positions(Estimated Allocation)* 264.9 25.1 291.0
Budgeted Salaries&Wages $38,565,093 $3,601,298 $42,166,391
Budgeted Benefits 16,430,934 1,353,379 17,784,313
Capitalized Administrative Overhead** (4,448,369) 4,448,369 -
Benefits After Capitalized Administrative Overhead 11,982,565 5,801,748 17,784,313
Total Costs Active Employees*** $50,547,658 $9,403,046 $59,950,704
Retiree and Unfunded Liabilities Costs
Retiree Benefits for OPEB $2,346,076 $- $2,346,076
UAAL/Unfunded Liabilities for Pension 12,436,841 12,436,841
Total Retiree and Unfunded Liabilities Costs $14,782,917 $- $14,782,917
Total Labor-Related Costs $65,330,575 $9,403,046 $74,733,621
* Estimated allocation of Full-Time Employees between Sewer Construction and O&M.
** Consists of indirect costs associated with non-productive hours and Administrative Overhead.
*** Restated to include new classification of costs; Board salaries&benefits included.
Budgeted Full-Time Equivalents
Table 11 shows full-time equivalent employee totals for the time periods indicated. The Year-End
Actual figures represent actual staffing as of June 30, 2019. In addition to the 293 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
FY • 2020-21
BudgetYear-End Actual Budget*
Regular Employees
(Excluding Recycled Water Employees) 279.0 291.0 293.0
Limited Duration Employees
Summer Students 30.0 17.0 24.0
Interns 9.5 11.0 13.5
* This summary budget table listed 31 and 9 for summer students and interns. Detailed departmental budgets summed
to 17 and 11, respectively.
** 293 staff includes 291 regular FTEs, plus an additional two positions which will expire in two years.
***The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
Table 12 - Full-Time Equivalent Positions by Bargaining Unit and Division
OperationsAdministration Engineering
Local One 21.0 42.0 108.0 171.0
Management
26.0 49.0 29.0 104.0
Support/Confidential Group
Management 5.0 4.0 3.0 12.0
Unrepresented 4.0 1.0 1.0 6.0
Total by Division 56.0 96.0 141.0 293.0
Staffing Changes
During 2015, a staffing and organizational study['] 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 2020-21 Budget includes $200,000 in gross
wages and $106,000 for the benefit-related costs of implementing these potential changes.
Overall, staffing is at 293 positions, reflective of the 2015 Organization and Staffing Plan
recommendation, which recommended an additional four positions from the then 287 budgeted
positions. Additionally, two limited duration positions for the permit counter were approved during
FY 2019-20. The 293 staffing figure compares to 291 staff in the FY 2019-20 budget. As described
previously, several budgetary organizational units reported in the prior year were impacted by the
restructuring of Central San's chart of accounts as part of its planned implementation of a new ERP in
FY 2020-21. Some significant changes include: (1) splitting the previously-reported "Office of the
General Manager and Secretary of the District" into sub-units, (2) the creation of Director budgetary
organizational units overseeing each Department, and (3) the consolidation of Safety into Human
Resources. These changes did not impact the reporting structure of Central San or operations
generally but were intended to improve parent-child relationships in the new chart of accounts to
facilitate automated reporting in the new ERP system.
Report is available here: http://centralsan.org/documents/Organization_and_Staffing_Plan.pdf.
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Excluding the impact of these structural changes that were largely inconsequential to reporting
structures and operations, reallocations of staffing between divisions and position changes within
divisions are summarized below:
• Creation of Engineering Assistant position (Planning & Development Services)
• Management Analyst transferred from the Office of the General Manager to Human Resources
• Engineering Assistant transferred from Planning & Development Services to the Director of
Engineering &Technical Services (Resource Recovery Program)
• Vacant Senior Buyer position repurposed to Buyer (Purchasing)
• Vacant Payroll Analyst position repurposed to Senior Administrative Technician (Human Resources)
• Vacant Utility Worker positions repurposed to Maintenance Crew Members (Collection System
Operations)
Capital Improvement Budget
Sewer Construction Fund revenues are projected to increase by $33.5 million, from $65.6 million in
FY 2019-20 to $99.1 million in FY 2020-21.
This increase is to cover an extensive CIP, the funding for which will generated through an increase in
SSC of$28.6 million, resulting from additional revenue available from the 5.25% system average rate
increase effective July 1, 2020, and a significantly larger allocation of the SSC to Capital versus 0&M.
The City of Concord reimbursement increases $3.7 million due to increased cost-based reimbursement.
This relates to Concord's flow proportionate share of treatment plant, recycled water and general
improvement components of the capital budget. Additionally, $3 million of borrowing from the State
Revolving Fund is anticipated to fund the Solids Handling Facilities Improvements Project in
FY 2020-21.
The $88 million budget does not include the anticipated carryforward from FY 2019-20, which will be
communicated to the Board after the close of the current fiscal year. The $21.8 million increase, or
33%, 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 contribute approximately $14.1 million to capital reserves during FY 2020-21 revenues
exceeding expenditures by that amount. Funding the Sewer Construction Fund (Capital Improvement)
Working Capital Reserves exceeds the requirement of the aforementioned Board Policy No. BP 017 -
Fiscal Reserves. These and prior year contributions to the Sewer Construction Reserve allow for
smoothing of rate requirements to accommodate the significant ramp-up of expenditures that is
continuing in the next several years, with peak capital spending anticipated to reach $110 million in FY
2021-22.
Table 13 below is a summary of the projected FY 2020-21 Sewer Construction Fund revenues and
expenditures. Further details are included in the Capital Improvement Program section.
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Table 13 - Sewer Construction Fund Revenues and Expenditures
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budget-to-Budget %
Budget Actual Budget Projected Budget" Variance Variance
Revenue
Capacity Fees $5,900,000 $7,619,056 $5,750,000 $8,290,000 $6,000,000 $250,000 4%
Pumped Zone Fees 600,000 459,839 291,000 254,000 262,000 (29,000) -10%
Interest Income 570,000 1,121,528 674,000 855,000 293,500 (380,500) -56%
Ad Valorem Taxes 13,300,000 14,749,226 14,520,000 15,628,000 15,940,000 1,420,000 10%
Sewer Service Charge 27,926,268 28,588,625 32,219,130 32,909,000 60,797,089 28,577,959 89%
Reimbursements
City of Concord 7,150,000 15,947,032 11,630,000 12,300,000 15,300,000 3,670,000 32%
Recycled Water Sales - - - - - - 0%
Developer Fees and Charges 443,000 364,886 514,000 473,000 484,000 (30,000) -6%
Total Revenue $55,889,268 $68,850,193 $65,598,130 $70,709,000 $99,076,589 $33,478,459 51%
Loan&Bond Proceeds
State Revolving Fund Loan
$ $ $' $ $3,000,000 $3,000,000 0%
Proceeds
Total Revenue and Loan $55,889,268 $68,850,193 $65,598,130 $70,709,000 $102,076,589 $36,478,459 56%
Proceeds
Expenditures
Treatment Plant Program $16,865,000 $12,239,981 $28,330,000 $25,497,000 $32,334,000 $4,004,000 14%
Collection System Program 19,347,000 20,791,120 27,130,000 24,417,000 40,165,000 13,035,000 48%
General Improvements Program 4,750,000 3,062,994 4,264,000 3,837,600 3,925,000 (339,000) -9%
Recycled Water Program 2,857,000 601,954 4,452,000 4,006,800 9,100,000 4,648,000 104%
Contingency 1,500,000 - 2,000,000 1,800,000 2,500,000 500,000 25%
Total Expenditures $45,319,000 $36,696,049 $66,176,000 $59,558,400 $88,024,000 $21,848,000 33%
Carryforward $6,968,827 = $8,493,521
Total Expenditure Authority $52,287,827 $- $- $68,051,921 $- $-
Sewer Construction Funds Available
Projected Revenue and Loan
$ $ $65,598,130 $70,709,000 $102,076,589 $-
Proceeds
Projected Expenditures*** 66,176,000 59,558,400 88,024,000
Reserves Contribution/(Draw) $- $- ($577,870) $11,150,600 $14,052,589 $-
* Projection as of April 2020.
**The FY 2020-21 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 2019-20 budget and projected spending will be spent in FY 2020-21.
Impact of Capital Improvement Budget on Ongoing Operations &Maintenance Budget
Central San's Capital Improvement Budget and the extent to which FY 2020-21 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 2020-21 Capital Improvement
Budget, these effects are minimal. To the extent that 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) such
costs 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 2018-19 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 (Working capital reserves)—The Board has set a target of 50% of
the annual Capital Improvement Budget at the start of each fiscal year, excluding capital projects
that are to be funded with bond proceeds.
• For the Self Insurance Fund (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, 2020 and 2021. The FY 2020-21 revenue requirement relies on a $10.5 million net use of the
reserve balances:
• The reduction in the O&M reserve is related to higher than policy specified funding in the reserve
at June 30, 2019, anticipated favorable variances for FY 2019-20, and a redefinition of reserve
balance to include non-cash & investment balance sheet accounts (see discussion below).
• The increase in the Sewer Construction reserve relates to the anticipated increase in Capital
Improvement Budget spending in subsequent years, and planned use of cash in those years.
• The reduction in the Self-Insurance Fund reserve is related to higher than required funding in the
reserve at June 30, 2020, due to lower claims expenses in the current fiscal year.
During FY 2019-20, staff completed an assessment of the calculation of the O&M and Sewer
Construction Reserves and proposed certain adjustments which were reflected in an updated BP 017.
Previously, the reserves were calculated simply as cash and investment balances. It was recognized
that certain accrual related adjustments were necessary to in certain instances to reflect a true reserve
balance available for use. The revised definition is used in the calculation of projected reserves shown
in Table 14.
The projected amounts are subject to change based on actual financial results for the current and next
fiscal years.
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Also provided on Table 14 is a projection of the Rate Stabilization Account, Pension Trust fund, and
OPEB trust fund. Assumptions include:
• Rate Stabilization Fund Reserve Account: No additional deposits or earnings on the account. The
Board may instead direct a portion of the FY 2019-20 year-end closeout to this account.
• Pension Prefunding Trust Fund: The projected balance as of June 30, 2020 assumes a 10% decline
in value due to adverse returns. The $1.25 million budgeted in FY 2020-21 towards employee
related liabilities is deposited here. The Board could instead direct that amount to the OPEB Trust.
• OPEB Trust Fund: The projected balance as of June 30, 2020 assumes a 10% decline in value due to
adverse returns. No additional deposits or earnings on the account in FY 2020-21.
The Supplemental Financial Information section of this budget document contains a table showing
changes in net position and fund equity.
Table 14 — Reserve Projections
Sewer Self-insurance
O&M Fund Construction Fund Totals
Fund(Capital)
Actual Balance as of June 30,2019 $62,121,261 $57,371,029 $7,371,031 $126,863,321
Projected Balance as of June 30, 2020 64,373,260 60,938,108 7,350,331 132,661,699
Projected Balance as of June 30, 2021 40,444,233 74,990,697 6,700,581 122,135,512
Change Year Over Year ($23,929,027) $14,052,589 ($649,750) ($10,526,188)
Reference: Table 7 Table 13 Self Insurance See Figure 3
Table 1
Percentage Change Year Over Year -37.2% 23.1% -8.8% -7.9%
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 2019-20 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 30,2020 $37,777,641 $44,012,000 $6,500,000 $88,289,641
Projected Balance Minus Reserve Policy 26,595,619 16,926,108 850,331 44,372,059
Target at June 30,2020
Comparison to Policy Target-End of Budget Year
Reserve Policy Target end of June 30,2021 $40,295,733 $40,107,545 $6,500,000 $86,903,278
Projected Balance Minus Reserve Policy 148,500 34,883,152 200,581 35,232,233
Target at June 30,2021
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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Table 14 — Reserve Projections continued
Rate Stabilization Pension Trust Fund OPEB Trust Fund
Account
Actual Balance as of June 30,2019 $- $8,420,816 $65,926,014
Projected Balance as of June 30,2020 2,610,000 8,703,734 59,114,892
Projected Balance as of June 30,2021 2,610,000 9,953,734 59,114,892
Change Year Over Year - 1,250,000 -
Reference:
Percentage Change Year Over Year 0.0% 14.4% 0.0%
FY 2020-21 FY 2020-21 FY 2020-21
Explanation Earnings Not Earnings Not Earnings Not
Projected Projected Projected
Comparison to Policy Target-Start of Budget Year
Policy Target N/A N/A N/A
Reserve Policy Target end of June 30,2020 N/A N/A N/A
Projected Balance Minus Reserve Policy Target at
$2,610,000 $8,703,734 $59,114,892
June 30,2020
Comparison to Policy Target-End of Budget Year
Reserve Policy Target end of June 30,2021 N/A N/A N/A
Projected Balance Minus Reserve Policy Target at
$2,610,000 $9,953,734 $59,114,892
June 30,2021
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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 9 depicts all existing debt payments
for Central San. Future planned debt issuances would add to this debt profile. Additionally, the SRF
loan, when the loan agreement and repayment schedule is finalized, would also add to these debt
repayment amounts.
Figure 9 — Debt Service Payment Schedule
$3,000,000
- _ I+IPrincipal
$2,500,000
W Interest
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
FY FY FY FY FY FY FY FY FY FY FY
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
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Long-Term Spending Trend
Figure 10 shows a long-term trend line of past O&M expenditures, while Figure 11 shows a
long-term trend line of past capital expenditures. The O&M Budget was held essentially flat for a total
of six years (from FY 2014-15 to FY 2019-20). FY 2020-21 provides for an increase of just 2.2% above
the six-year average of the preceding 0&M budgets. Spending in FY 2020-21 is consistent with the
financial plan which recognizes certain inflationary pressures.
Figure 10 — Long-Term O&M Spending Trend
S 100,000,000
590,000,000
S80,0D0,000
570,000,000
560,000,000
550,000,000
540,000,0DD
530,000,000
520,000,400
510,0D0,000
5-
� � � a �
i ik
r r r r r r r r r r r r r r r r r r r r s s r r r r r r
r r r r r r r r r r � r r r r r r r r r r .► w. r r r r r►
Budget Actual
Capital spending has been ramping up significantly since FY 2016-17, with spending projected to
average $90.7 million per year over the next decade (in 2020 dollars). Over the past 10 years, spending
has been $327.6 million.
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Figure 11 - Infrastructure Investments Over Past Ten Years: $327,600,000
I
V V 29
530.0
I¢amu 1AE 20.
$20.0 6�1
510- �11 ]114-
10.
$1o.o
U12 U12
sa.o
FY 2010.11 FY 2011.12 FY 2012-13 FY 2013.14 FY 2014.15 FY 2015-16 FY 2016.17 FY 2017-18 FY 2018-19 FY 2019.20
Prajecied
■7remmen[Pbn[Pr ogr an A Co lett ion System Program ■General lmprovemeitts P rcgram a Rayr led Water Prcffam
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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 achieve the strategic goals and objectives.
The two department directors, the Deputy General Manager, and the General Manager form Central
San's Executive Team. 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; the
strategic accomplishments in FY 2019-20 as of March 31, 2020 (Q3); performance against the
FYs 2018-20 Strategic Plan key metrics in FYs 2018-19 and 2019-20 as of Q3; FYs 2020-22 Strategic Plan
targets for FY 2020-21, and operating budget needs. For final FY 2019-20 strategic performance data,
please refer to the FY 2019-20 Strategic Plan Annual Report after publication in fall 2020.
The total operating budget for FY 2020-21 is $90.7 million, a $1.0 million or 1.1% increase over the
$89.7 million budget for FY 2019-20.
{
1
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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 (HR) /safety; purchasing and materials services;
information technology; and risk management. The department is also responsible for internal
communications, advancing Central San's policy objectives with state and federal legislative bodies,
and being responsible for interagency relations and public affairs.
The divisions that comprise this department include the following:
• Executive Governance Divisions NMI
o Office of the General Managed �r
o Office of the Deputy General Manager 5. A -
o Office of the Secretary of the District
o Board of Directors _ Y
• HR/Safety : "
• Director of Finance & Administration x
• Communication Services and Intergovernmental
Relations
• Finance
• Information Technology (IT) p
• Purchasing and Materials Services LZo�
• Risk Management
ie4
ik
-w
1 I I
f
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Executive/Governance Offices
This section presents the budgets for the organizational units of Central San charged with executive
governance. Divisional units include the offices of the General Manager, Deputy General Manager,
Secretary of the District, and the Board of Directors (Board).
Office of the General Manager
OVERVIEW
The primary mission of the Office of the General Manager is to work with the Board to establish and
implement policies and procedures, as well as the District's overall goals and Strategic Plan. The
General Manager reports directly to the Board; acts as Central San's representative in collaborative
associations with other agencies; and provides 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 strategic accomplishments
below represent tasks completed by the General Manager and his budgeted staff, as well as major
overarching accomplishments of the District directly overseen by the General Manager. The agency-
wide FY 2020-21 accomplishments and strategic performance, as well as the FY 2021-22 targets and
objectives, are embodied in each of the individual division and program sections.
This office's staffing budget includes the administrative staff supporting the General Manager and the
Administration Department, as well as the budgeted Internal Auditor position.
FY 2019-20 Strategic Accomplishments
•' • Provide exceptional customer service and maintain an excellent reputation in the
community
• Oversaw the effort to continue providing essential services during the COVID-19
pandemic while protecting employees, the public, and the environment.
• Received 62 applications for the next session of Central San Academy.
• Served on the boards of NACWA, CASA,WateReuse, and John Muir Health to
strengthen ties to the water sector and the community Central San serves.
• Met with city and town officials to ensure open lines of communication and interagency
relations, including attendance at Contra Costa County Mayors Conferences.
• Presented Strategic Plan Annual Report to the Board.
• Updated the Strategic Plan to reflect Central San's priorities for FYs 2020-22.
• Along with other Central San senior staff, co-hosted Executive Team of Monterey
One Water for an information exchange.
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Be a fiscally responsible and effective wastewater utility
• Successfully transitioned all employees and retirees to CalPERS health benefit plans
on July 1 for savings in healthcare costs.
• Presented Internal Audit Plan for calendar year 2020 to the Board.
• Performed internal audits on residential non-SSC revenues and on contracts for
goods and services and professional consulting agreements, which identified
opportunities to strengthen internal controls.
CUM
Recruit,develop,and retain a highly trained and safe workforce
*) • Facilitated one-on-one meetings between each Board Member and the Executive
Committee Members of the Local One and Management Support/Confidential Group
bargaining units.
• Met with the Executive Committee Members of the bargaining units.
Embrace technology, innovation,and environmental sustainability
• Delivered Benchmarking Study comparing Central San's performance against other
water and wastewater agencies statewide and nationwide over three fiscal years.
• Maintained Optimizations Program to commit to efficiency, effectiveness, and
continuous improvement by tracking and reporting progress.
• Produced and presented Optimizations Program Annual Report to the Board.
• Formed a "Central San Smart" committee to review and champion initiatives to
leverage data to improve operations and reduce costs.
• Continued efforts to augment the region's water supply through the proposed Refinery
Recycled Water Exchange and the request from the Dublin San Ramon Services District
(DSRSD) - East Bay Municipal Utility District Recycled Water Authority(DERWA) to
divert flow from the San Ramon Pumping Station to create recycled water.
• Assisted in the effort to investigate the growing challenge of recycling certain
materials in order to obtain a better understanding of the issue from the agencies in
the service area and how it can be overcome.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
Goal AlWatr" FYs 2018-20 FY 2018-19 FY 2019-20 Performance FY 2020-21
10L Target Performance as of Q3 Target
► Awards or Recognitions >_10 13 it 11 I�� >_10
Received 11 r , r
N/A
Completed Optimizations Not a Metric in the >_20
FYs 2018-20 Strategic Plan
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FY 2020-21 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:
Goal/StrategyObjective
•' ' _ Continue to provide staff with resources and high-level guidance needed to maintain
excellence in the industry.
Maintain a Positive Represent Central San's best interests in involvement with industry associations and
Reputation advocacy groups regionwide,statewide, nationwide,and worldwide.
Continue to work toward the fruition of the Refinery Recycled Water Exchange,an
Support Regional innovative partnership between Central San,CCWD,and Valley Water to supply recycled
Development of Local water to neighboring refineries.
Water Supply
.,
-:y Continue to meet regularly with labor bargaining unit representatives and division
workgroups to maintain an open channel of communication and address workplace
Foster Relationships across issues.
All Levels of Central San
Continue to inspire performance,efficiency,and effectiveness through the
Optimizations Program,the Central San Smart initiative,fulfillment of the Strategic Plan,
Improve and Modernize and an employee recognition program.
Operations through
Technology and Efficiency Hold Central San's first Innovations Fair to share innovations done to date,communicate
Measures what is to come,and inspire employees to further optimize their operations.
Budget Overview by Expense Cate or
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
Salaries&Wages $704,159 $719,973 $751,241 $610,400 $815,472 $64,231 8.6%
Employee Benefits 248,085 237,552 259,873 259,958 270,585 10,712 4.1%
Unfunded Liabilities 157,398 162,606 164,314 276,126 257,072 92,758 56.5%
Other Purchased Services 72,214 75,367 80,000 45,000 80,000 -
Professional Services 37,500 52,534 50,000 25,000 50,000
Technical Services 34,714 22,832 30,000 20,000 30,000
Supplies&Materials
General Supplies 5,909 4,844 7,800 6,500 7,800
Other Expenses 83,090 56,219 83,290 79,235 70,650 (12,640) -15.2%
Memberships 48,940 34,028 53,140 48,985 45,900 (7,240) -13.6%
Training&Meetings 26,150 20,171 26,150 26,250 20,750 (5,400) -20.7%
Miscellaneous Other 8,000 2,020 4,000 4,000 4,000 -
Total $1,270,856 $1,256,560 $1,346,519 $1,277,219 $1,501,579 $155,060 11.5%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements
EmployeesFY 2018-19
Regular Status
Actual
General Manager 1.0 1.0 1.0
Administrative Technician 1.0 1.0 1.0
Executive Assistant 1.0 1.0 1.0
Internal Auditor - - 1.0
Management Analyst 1.0 1.0 -
Senior Administrative Technician 1.0 1.0 1.0
Total 5.0 5.0 5.0
Budget Modifications and Contributions to Key Priorities
As described in the Financial Summary section of the budget book previously, as part of the
implementation of a new ERP system and revised chart of accounts, new org units were established for
improved reporting purposes. In prior budgets, costs associated with the Office of the General
Manager functions were reported within a consolidated cost center titled "Office of the General
Manager and Office of the Secretary of the District." This budgetary org unit reported costs for the
Board of Directors, the Office of the General Manager, the Office of the Secretary of the District as well
as the office of the Director of Finance & Administration. Beginning in FY 2020-21, each of these four
previously consolidated cost centers has been separated.
The Office of the General Manager's budget for FY 2020-21 is $1.5 million, a $155,000 or 11.5%
increase over the $1.3 million budget in FY 2019-20, as restated. This increase is primarily attributable
to transferring the Internal Auditor position from the Finance Division in the prior year to the Office of
the General Manager in FY 2020-21 to reflect the reporting relationship of that position. 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.
The Office of the General Manager leads the effort to address all key priorities facing Central San, as
described in the General Manager's Message.
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Office of the Deputy General Manager
OVERVIEW
The Deputy General Manager oversees the Operations Department, Administration Department, and
the HR (which now includes Safety) Division. The Office of the Deputy General Manager assists the
General Manager in the general day-to-day administration of Central San and provides resources and
support to ensure the successes outlined in the sections of the HR/Safety, IT, Finance, Purchasing and
Materials Services, Communication Services and Intergovernmental Relations, Risk Management
Divisions, and the Operations Department.
Major accomplishments include progress made on the Classification Study, the publication of the
FY 2018-19 Strategic Plan Annual Report, and the update of the Strategic Plan to reflect the next two
years of priorities and challenges. The Deputy General Manager continues to serve as a key advisor on
several large-scale projects, such as the Enterprise Resource Planning Replacement and Solids Handling
Facility Improvements Projects. On a regular basis, the Deputy General Manager also helps oversee
succession planning, financial planning, and labor relations efforts.
Because the Deputy General Manager also serves as the Director of Operations, the Office of the
Deputy General Manager does not have a separate budget. The strategic accomplishments for the
Office of the Deputy General Manager are reflected in the Office of the General Manager and
Administration Departments.
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Office of the Secretary of the District
OVERVIEW
The Secretary of the District reports to the Board and General Manager 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.
FY 2019-20 Strategic Accomplishments
■• • Provide exceptional customer service and maintain an excellent reputation in the
community
• Renewed California Special Districts Leadership Foundation Transparency Certificate
of Excellence.
• Coordinated Board Self-Evaluation Workshop, Long-Term Vision Planning Board
Workshop, Financial Planning Workshop, and annual review of Board Member
compensation and benefits.
• Facilitated adoption of the new Internal Audit Function Board policy and a
comprehensive update of the Board policy delegating authority to the General
Manager.
• Coordinated biennial review of existing Board policies and facilitated amendments to
11 Board policies.
• Coordinated meetings for Board Liaisons with representative cities and agencies.
• Provided Records Program services to all departments, including indexing over 350
new records boxes transferred to storage, creating and printing over 1,500 new file
folder labels, delivering over 100 boxes requested from storage, and processing
shredding services for over 30 boxes of approved destructions, non-records, copies,
and transitory documents.
Strive to meet regulatory requirements
(.7 • Completed comprehensive review and presentation of the updated Records
Retention Schedules with incorporated destruction policy to the Board for adoption.
• Developed new policy for destroying records that meets the requirements of
GC §60201(b)(2) and ensures evidence of compliance with retention policies.
• Developed and trained staff on a new Records Program Handbook incorporating the
new destruction policy, revised retention Schedules, and instructions for requesting
other Records Program services.
• Facilitated the filing of Statements of Economic Interest (Form 700) for all designated
filers under the Conflict of Interest Code.
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• • • Recruit,develop,and retain a highly trained and safe workforce
• Conducted employee workshops on the Ethics Compliance, Brown Act, and Public
Records Act.
• Staff attended International Institute of Municipal Clerks (IIMC), California Special
District Association (CSDA) Board Secretary, and Association of Records Managers
and Administrators (ARMA) Conferences.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
Goal Metric FYs 2018-20 FY 2018-19 FY i Performance FY 2020-21
Target Performance as of Q3 Target
N/A
Biennial Review of All . r 'Ur Not a Metric in
100% 100% 4 r 100% r
Existing Board Policies ' r r FYs 2020-22
Strategic Plan
FY 2020-21 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 FY 2020-21
® Develop procedures for onboarding a new Board Member.
Provide Obtain electronic posting system for agendas and public hearing notices.
High-Quality Customer Service
"VA, Update and convert 2015 Board Compensation Resolution to a new Board Policy
Achieve 100%Compliance in to facilitate regular review.
All Regulations
Consider potential improvements to modernize the Board Meeting Room,
including the addition of multiple video cameras to improve transparency,
upgrades to the electronic systems to accommodate mobile devices,and replacing
Improve and Modernize projector screens with monitors.
Operations through Technology Begin a project with the Information Technology Division to optimize use of
and Efficiency Measures electronic records to improve processes District wide and develop an E-Records
Master Plan.
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Budget Overview by Expense Cate or
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Description Budget* Actual* ,,Budget* Projected* Budget Budget Budget
==;& Variance($) Variance(%)
Salaries&Wages $416,313 $424,859 $444,599 $493,000 $483,201 $38,602 8.7%
Employee Benefits 130,268 125,543 136,656 154,519 160,700 24,044 17.6%
Unfunded Liabilities 101,315 104,667 105,767 177,738 165,473 59,707 56.5%
Purchased Property Services 29,300 21,356 25,000 22,000 24,850 (150) -0.6%
Repairs&Maintenance 14,300 9,408 10,000 9,000 9,850 (150) -1.5%
Rentals 15,000 11,948 15,000 13,000 15,000 -
Other Purchased Services 153,786 158,533 166,000 196,187 132,000 (34,000) -20.5%
Professional Services 37,500 52,534 50,000 75,000 50,000
Technical Services 46,286 30,443 40,000 50,000 6,000 (34,000) -85.0%
Other Services 70,000 75,555 76,000 71,187 76,000 -
Supplies&Materials
General Supplies 8,862 7,142 11,650 11,000 11,000 (650) -5.6%
Other Expenses 17,840 5,997 14,440 9,005 21,555 7,115 49.3%
Memberships 3,440 1,439 3,440 3,255 4,555 1,115 32.4%
Training&Meetings 6,400 2,537 7,000 3,250 14,500 7,500 107.1%
Miscellaneous Other 8,000 2,020 4,000 2,500 2,500 (1,500) -37.5%
Total $857,684 $848,097 $904,112 $1,063,449 $998,779 $94,667 10.5%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
Personnel Requirements
EmployeesFY 2018-19
Regular Status i FY 2020-21
Actual
Administrative Services Supervisor 1.0 1.0 1.0
Assistant to the Secretary of the District 1.0 1.0 1.0
Secretary of the District 1.0 1.0 1.0
Senior Administrative Technician 1.0 1.0 1.0
Total 4.0 4.0 4.0
EmployeesFY 2018-19
Limited Duration
Actual
Clerical Summer Student(Office of the Secretary of the District) 1.0 1.0 -
Total 1.0 1.0 -
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation
Budget Modifications and Contributions to Key Priorities
As described previously, as part of the implementation of a new ERP system and revised chart of
accounts, new org units were established for improved reporting purposes. In prior budgets, costs
associated with the Office of the Secretary of the District were reported within a consolidated cost
center titled "Office of the General Manager and Office of the Secretary of the District." This
budgetary org unit reported costs for the Board of Directors, the Office of the General Manager, the
Office of the Secretary of the District as well as the office of the Director of Finance & Administration.
Beginning in FY 2020-21, each of these four previously consolidated cost centers have been separated.
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The Office of the Secretary of the District Operating Budget for FY 2020-21 is $999,000, a $95,000 or
10% increase over the $904,000 budget in FY 2019-20, as restated. Salaries & Wages include the
agency-wide cost-of-living adjustment and increases due to step advancements. Technical Services
decreased following the completion of a largescale record retention update project during FY 2019-20.
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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Board of Directors
OVERVIEW
The Board is a five-member governing body which represents the needs and interests of Central San's
customers. It provides oversight to Central San by setting policy direction; establishing governing
ordinances and rules; ensuring accountability; providing resources; bargaining collectively with unions;
managing Executive Management staff; and attending to lawsuits, real estate acquisitions, and high-
level Human Resources (HR) issues. Each member is elected to a four-year term. In addition to
twice-monthly meetings, Board Members serve on individual committees to review matters within
their purview for recommendation to the full Board. They also act as liaisons to specific agencies and
cities served by Central San, meeting with officials and presenting to town and city councils as needed
to provide customer service and represent Central San and its ratepayers.
Budget Overview by Expense Category
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
Variance Variance(%)
Salaries&Wages $54,650 $49,335 $54,650 $46,600 $54,650 $
Employee Benefits 68,844 77,531 50,000 91,500 106,229 56,229 112.5%
Other Purchased Services 350,000 330,303 100,000 100,000 350,000 250,000 250.0%
Professional Services 100,000 107,405 100,000 100,000 100,000 -
Other Services 250,000 222,898 - - 250,000 250,000
Supplies&Materials
General Supplies 5,000 876 5,000 4,000 5,150 150 3.0%
Other Expenses 57,000 31,449 46,000 38,000 48,000 2,000 4.4%
Training&Meetings 45,000 28,418 40,000 30,000 40,000 -
Miscellaneous Other 12,000 3,030 6,000 8,000 8,000 2,000 33.3%
Total $535,494 $489,493 $255,650 $280,100 $564,029 $308,379 120.6%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
Budget Modifications and Contributions to Key Priorities
As described previously, as part of the implementation of a new ERP system and revised chart of
accounts, new org units were established for improved reporting purposes. In prior budgets, costs
associated with the Board of Directors were reported within a consolidated cost center titled "Office of
the General Manager and Office of the Secretary of the District." This budgetary org unit reported
costs for the Board of Directors, the Office of the General Manager, the Office of the Secretary of the
District as well as the office of the Director of Finance &Administration. Beginning in FY 2020-21, each
of these four previously consolidated cost centers has been separated.
The Board of Directors Operating Budget for FY 2020-21 is approximately$564,000, a $308,000 or
121% increase over the $256,000 budget in FY 2019-20, as restated. The bulk of this budgetary
increase is attributable to costs associated with election costs in November 2020. The budget also
reflects more Board members anticipated to take health insurance next year.
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Human Resources / Safety
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; engagement efforts; and all payroll functions.
The Safety workgroup is overseen by the HR Manager 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 2019-20 Strategic Accomplishments (Human Resources)
•' • Provide exceptional customer service and maintain an excellent reputation in the
community
• Co-coordinated Central San's response to the COVID-19 pandemic, ensuring essential
services remained intact while protecting staff,the public, and the environment.
' • Strive to meet regulatory requirements
• Conducted harassment and ethics training for all employees.
Be a fiscally responsible and effective wastewater utility
�[ }� • Successfully transitioned all employees and retirees to CalPERS health benefit plans
`mss on July 1 for savings in healthcare costs.
Recruit,develop,and retain a highly trained and safe workforce
• Deployed a survey to assess employee engagement levels.
• Completed the Classification Study Phase 1, developing naming conventions.
• Hosted HR @ Your Service training sessions for employees.
• Began offering financial wellness seminars on alternate months with HR @ Your
Service sessions.
• Started presenting monthly wellness seminars on topics related to physical and
mental health.
• Held the third session of the Management Academy, which for the first time
allowed participants from sister public agencies.
• Paired seven mentees with mentors in the third cycle of the BOOST Mentorship
Program.
• Began tracking status of resolution of issues arising from the Local One and
Management Support/Confidential Group Labor Management Committees.
• Transitioned to Kaiser Occupational Health for all pre-employment medical
activity.
• Identified NeoGov as the vendor for the implementation of an agency-wide
learning management system to centralize tracking of all employee training.
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• Hosted two students from the University of Michigan in first student externship
program.
• Suggested enhancements to the performance evaluation forms, which are
currently being discussed with the bargaining units.
• Continued coordinating with other agencies to support development of the
regional workforce.
Embrace technology, innovation,and environmental sustainability
• Implemented new HR modules within the new ERP system which includes HR
information system and employee self-service, which will result in increased
automation, ease of report production, and improved record keeping.
• Launched new payroll system within the new ERP, including biweekly pay for
employees.
FY 2019-20 Strategic Accomplishments (Safety)
■ ' ■ Strive to meet regulatory requirements
r
• Updated the Exposure Control Plan for Bloodborne and Infectious Pathogens.
' • Oversaw the Employee Medical Surveillance Program.
• Oversaw Hazardous Materials Business Plan (HMBP) with no violations.
• Had zero Cal/OSHA violations.
■' ■ Recruit,develop,and retain a highly trained and safe workforce
• Conducted 243 Safety Tailgates to train various divisions on safety topics.
• Conducted 28 classroom safety courses and 37 online safety courses on 49
different subjects.
• Collection Systems Operations (CSO) Division and Administration and Engineering
and Technical Services Departments completed calendar year 2019 with zero lost
work days.
Maintain a reliable infrastructure
• Spearheaded facility safety upgrades to the fire protection system in the Plant
Operations facilities; diesel storage tanks; and the gas detection system in the Solids
Conditioning Building, Headworks, and Pumping Stations.
• Addressed action items within the District Safety Committee (DSC) quickly(the current
timeframe for an open action item is less than 60 days).
• DSC reviewed 17 Safety Suggestions in calendar year 2019.
• Conducted 10 Contractor Safety Orientations, reviewed 151 Design and Safety
Submittals, and attended 72 Construction Progress Meetings.
Embrace technology, innovation,and environmental sustainability
• Maintained chemical inventory and reconciled safety data sheets with online
repository, MSDSonline°.
• Launched Safety page on San Central intranet to provide more efficient access to safety
information.
• Integrated online safety training through Target Solutions°.
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FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
FYs 2018-20 FY 2018-19 FY 2019-20 FY 2020-21
Goal Metric Target Performance Performance Target
&.:!�= as of •
100% 100%of Staff
.. . Employees ?50% of Staff Due Due for N/A
for Training ' r ■ r Not a Metric in
AttendingCustomer of All g ■�r Training(New ■�r
[New Employees ' r Employees ' r FYs 2020-22
Service Training District Staff within 6 Months within 6 Months Strategic Plan
of Employment) of Employment)
Average Time
to Fill Vacancy r■ ■ r
550 Days 58.8 Days i�i 54.0 Qays i r <_60 Days
NAM (From Request to
Hire)
Turnover Rate at or 54.8% 56.5%
Below Industry (2017 Industry 5.7% 1 r 4.73'0 ��; (2018 Industry
Average Median) Median)
?7.5 Hours >_15 Hours
Average Annual per Full-Time Per Full-Time
Training Hours 22.7 ■ r 4.1 r
� Equivalent ■�■ ,�r Equivalent
��2 (External and Hours/FTE " r Hours/FTE r
Internal Training) Employee Employee
(FTE) (FTE)
N/A
.. Actual Versus ;A: 77 93' Ur Not a Metric in
Budgeted Usage of ?80.0% 73.8% r r r
rim FYs 2020-22
Training Dollars
Strategic Plan
.• Participation in Increase b ■ r . r Increase b
rel Annual Wellness Y -15.6% ° ■ r y
10%Each Year ;�� +13.$/ .�r 10% Each Year
Expo
.. . Internal Promotions
:=� (Excludes Entry- X25% 45.8% ' r 75% ; r >_25%
Level Positions)
Zero
Formal Grievances ■ r ■ r
Zero(0) 2 ;fl; Zero (0) ;�; Grievances
Filed Processed
>_95%
.• Performance Completion of
■�� Evaluations 100.0% 49.0% ��; 62.4% :�: Annual
r�r
Completed on Time Performance
Evaluations
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..
l Metric Target Performance Performance Target
as of •
Safety
<_6.8
(Bureau of
•. • Employee Injury and Labor :54.0(via BLS)
Statistics(BLS) .�. .�r
Illness Lost Time 2.6 J r 3.6 J r
California ` ' ` ' <_5.6(via
Incident Rate Sewage AWWA)
Treatment
Facilities Rate)
FY 2020-21 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
Launch third Supervisory Academy in fall 2020.
Ensure Adequate
Staffing and
Training to Meet Purchase and implement the NeoGov®learning management system for centralized training
Current and tracking.
Future
Operational Levels
Investigate additional cost-effective benefits to offer to employees.
Enhance Implement recommendations from employee engagement survey.
Relationship with
Employees and Continue to work collaboratively with bargaining units to resolve workplace issues in their early
Bargaining Units stages and prevent grievances.
Continue improving customer service through the following:
A40,21-11,
• Increased visibility in contractor project oversight/design reviews.
Foster , participation in a greater number of tailgate meetings.
Relationships • Attendance at additional manager and departmental meetings.
across All Levels of . Inspections at more job worksites and facilities.
Central San
•' Continue monitoring safety metrics, including both leading and lagging indicators,to
®•` identify trends in incident reports,first-aids-only, near misses, and inspection findings.
Meet or Exceed Transition to the NeoGov®online training platform to improve efficiency and compliance with
Safety Standards online trainings, records retention,and certification tracking.
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Budget Overview by Expense Category Includes Human Resources, Retirees, Safe!
S;�� FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account De Budget* Actual* Budget* Projected* Budget Budget Budget
Salaries&Wages $1,856,367 $1,906,108 $1,974,648 $1,677,500 $2,131,990 $157,342 8.0%
Employee Benefits 2,184,600 2,863,806 1,836,548 1,921,492 1,903,305 66,757 3.6%
Unfunded Liabilities 7,836,715 5,232913 3,903,234 3,765,694 4,116,343 213,109 5.5%
Purchased Property Services 114,450 57,121 111,450 122,950 114,950 3,500 3.1%
Repairs&Maintenance 77,200 32,290 76,200 75,700 75,700 (500) -0.7%
Hauling&Disposal 10,000 6,964 8,000 20,000 12,000 4,000 50.0%
Security 27,000 17,866 27,000 27,000 27,000 -
Cleaning 250 250 250 250
Other Purchased Services 587,950 535,262 609,950 374,500 536,150 (73,800) -12.1%
Professional Services 122,500 184,842 122,500 62,500 122,500
Technical Services 34,000 3,040 34,000 34,000 34,000
Other Services 431,450 347,381 453,450 278,000 379,650 (73,800) -16.3%
Supplies&Materials
General Supplies 60,100 70,906 80,100 88,350 101,000 20,900 26.1%
Other Expenses 34,680 40,374 42,430 36,730 54,750 12,320 29.0%
Memberships 13,430 4,137 9,880 9,880 10,300 420 4.35%
Training&Meetings 17,250 34,170 28,550 22,950 37,450 8,900 31.2%
Miscellaneous Other 4,000 2,067 4,000 3,900 7,000 3,000 75.0%
Total $12,674,862 $10,706,508 $8,558,360 $7,987,416 $8,958,488 $400,128 4.7%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
Personnel Requirements
FY 2018-19
Regular Status Employees Year-End FY 2019-20 FY 2020-21
Actual
Human Resources Analyst 1.0 2.0 2.0
Human Resources Manager 1.0 1.0 1.0
Management Analyst - - 1.0
Operations Safety Specialist 1.0 2.0 2.0
Payroll Analyst 1.0 1.0 -
Safety Officer 1.0 1.0 1.0
Senior Administrative Technician 2.0 2.0 3.0
Total 7.0 9.0 10.0
Budget Modifications and Contributions to Key Priorities
As described previously, as part of the implementation of a new ERP system and revised chart of
accounts, certain modifications were made to budgetary org units for improved reporting purposes.
Beginning in FY 2020-21, costs of the Safety division are being consolidated within the Human
Resources Division as this function is an entity-wide support service. In prior budgets, costs associated
with the Safety division were reported as a Division within Central San's Operation's Department.
The Human Resources Operating Budget for FY 2020-21 is $8.96 million, a $400,000 or 4.7% increase
over the $8.56 million budget in FY 2019-20, as restated. Salaries & Wages include the agency-wide
cost-of-living adjustment and anticipated employee step increases. The increase in this division is
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largely attributable to labor-related costs for the transfer of a Management Analyst position from the
Office of the General Manager effective FY 2020-21.
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 $375,000 for Compensated Absences Accrual Payments and $475,000
for Accrued Compensated Absences
• Employee Benefits includes $25,000 for Unemployment Expenses.
• The Normal Cost as well as unfunded actuarial accrued liability (UAAL) attributable to Central San's
Other Post Employment Benefit (OPEB) plans are reported solely within this Division. OPEB
benefits offered include health, dental, life, and vision benefits. Every two years management
engages an actuary to calculate Central San's Actuarially Determined Contribution (ADC) to ensure
adequate funding levels of the plan over the long run. The ADC is further broken down between a
"Normal Cost" component, attributable to current active employees, and a "UAAL" component
attributable largely to unfunded retiree costs. Accordingly, in an effort to improve transparency,
financial planning and financial reporting, the budgeted cost of retiree health premiums is now split
between its normal and UAAL cost components in accordance with the independently calculated
ADC. In FY 2020-21, the total budgeted cost of retiree health premiums is $4.092 million, reflecting
a modest increase (2.2%) from the $4.001 million budgeted in the prior year.
• Unfunded Liabilities also includes the costs for supplemental pension and OPEB trust payments.
This account description includes payments to the OPEB trust to meet the annual ADC amount in
full in years where retiree benefit premiums falls short of the ADC. Beginning in FY 2019-20, 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. Accordingly, there is no required OPEB trust payment to fully satisfy
the ADC in FY 2020-21.
Human Resources plays an important role in meeting the overall challenges that Central San is
addressing by working to retain an engaged, motivated and safe 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; providing training programs to ensure that Central San
managers, supervisors and employees have the tools and knowledge to contribute to a
high-performance organization; and providing oversight of the safety function.
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Office of the Director of Finance &Administration
OVERVIEW
The Director of Finance &Administration oversees Communication Services and Intergovernmental
Relations, Finance, Purchasing and Materials Services, Information Technology, and Risk Management.
In FY 2019-20, much of the work under this office revolved around the replacement of the ERP
software, which has run Central San's core business processes since 1993. A significant District-wide
staff effort resulted in the implementation of the first stages of the new software system, including the
Core Human Resources in the fourth quarter of FY 2019-20, and preparing for a go-live of the Core
Financial modules in the first quarter of FY 2020-21. Information Technology and Engineering staff
coordinated on the implementation of a new permitting system and successfully integrated
engineering project management software. Other important work included advancements in advocacy
efforts and student education programs, a new intranet for improved internal communication abilities,
continued prudent funding of unfunded liabilities and Other Post-Employment Benefits, improvement
of internal controls, and enhancements to purchasing practices. The coordination of the response to
the COVID-19 pandemic was also performed within the Office of the Director of Finance &
Administration.
The FY 2019-20 Strategic Accomplishments and performance against the key metrics, as well as the
FY 2020-21 Strategic Objectives, for the Director of Finance & Administration are embedded within the
sections of the individual divisions and programs overseen by the Director.
Budget Overview by Expense Category
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Descriptio Budget* Actual* Budget* Projec Budget Budget Budget
imi �:nl Variance($) Variance(%)
Salaries&Wages $328,949 $337,116 $349,674 $344,700 $382,081 $32,407 9.3%
Employee Benefits 131,902 123,895 133,958 70,700 100,557 (33,401) -24.9%
Unfunded Liabilities 226,497 200,158 198,181 93,308 86,869 (111,312) -56.2%
Supplies&Materials 379 311 500 500 1,000 500 100%
General Supplies 379 311 500 500 1,000 500 100%
Other Expenses 9,500 3,354 9,400 3,300 8,525 (875) -9.3%
Memberships 800 468 800 800 925 125 15.6%
Training&Meetings 6,700 2,381 7,600 2,500 7,100 (500) -6.6%
Miscellaneous Other 2,000 505 1,000 - 500 (500) -50.0%
Total $697,227 $664,884 $691,713 $512,508 $579,032 (112,680) -16.3%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements
EmployeesFY 2018-19
IrRegular Status i
Actual
Director of Finance &Administration 1.0 1.0 1.0
Senior Administrative Assistant 1.0 1.0 1.0
Total 2.0 2.0 2.0
Budget Modifications and Contributions to Key Priorities
As described previously in the Financial Summary section, as part of the implementation of a new ERP
system and revised chart of accounts, new org units were established for Director functions overseeing
each department of Central San. In prior budgets, costs associated with Department Director functions
were reported within one of the child divisions of the overarching parent department. In the case of
the Office of the Director of Finance & Administration, prior year budget costs associated with this
function were previously reported within the Offices of the General Manager and Secretary of the
District.
The Office of the Director of Finance & Administration Operating Budget for FY 2020-21 is $0.6 million,
a $0.1 million or 16% decrease over the $0.7 million budget in FY 2019-20, as restated. This reduction
is largely attributable to a significant decrease in the unfunded liabilities expenses caused by this cost
center's dis-aggregation from the former "Offices of the General Manager and Secretary of the
District" org unit as well as a decrease in the required employer contribution rate to CCCERA. Salaries
& Wages include the agency-wide cost-of-living adjustment and increases due to step advancements.
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Communication Services and Intergovernmental Relations
OVERVIEW
This division facilitates communication with employees, customers, stakeholders, 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 2019-20 Strategic Accomplishments
, 0Provide exceptional customer service and maintain an excellent reputation in the
community
• Co-coordinated Central San's response to the COVID-19 pandemic, ensuring essential
services remained intact while protecting staff,the public, and the environment.
• Developed a state and national award-winning student education program, Pipe
Protectors, and increased the number or students served with this addition.
• Developed "Maintaining a Reliable Infrastructure—The Collection System," "Pipe
Protectors," and "Wipes Fail 'Flushable'Test"videos to communicate District
information.
• Continued to promote the Central San Academy.
• Continued to increase followers and impressions on YouTube, Facebook,Twitter, and
Instagram.
• Produced and distributed Pipeline newsletter to inform customers about major
infrastructure projects and share pollution prevention information.
• Met with city managers and other stakeholders to discuss potential impacts of Capital
Improvement Projects.
• Created new online content, allowing customers to learn about the sewer renovation
process.
• Presented results of customer research to assess awareness, satisfaction, desire to learn
more about Central San, and methods of best receiving information.
• Led the District's advocacy efforts at the state and national levels.
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* 14Strive to meet regulatory requirements
• Distributed the "Wipes are Costly to Sewer Agencies in California" map to local news
outlets,generating media coverage of the damage caused by wipes and the importance
of proper disposal.
• In collaboration with the California Association of Sanitation Agencies (CASA),the "Wipes
are Costly to Sewer Agencies in California" map was also included in a presentation to
state legislators to highlight the need for improved labeling and performance standards
for wipes.
• Communication Services and Intergovernmental Relations Manager was reappointed to
California Special Districts Association (CSDA) legislative committee,which helps develop
CSDA's legislative agenda and reviews, directs, and assists with legislative and public
policy issues affecting special districts throughout the state.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
FYs 2018-20 FY 2018-19 FY 2019-20 FY 2020-21
Goal Metric Target Performance Performance Target
. .
' Students Served by >_4 000 , r , r
Educational Programs per Year 6,056 ;�; 5,923 ;�; >_6,000
® Participants in Plant/ >_500
HHWCF Tours and per Year 2,756 1 758 ;�; >_500
District Presentations
N/A
,. .. Participants in r (session was r
Citizens Academy, per Session 39 '�r postponed ,��% ?35
Central San Academy
to Fall 2020)
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FY 2020-21 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 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.
WPM
Invest in programs to inform the public and students of the need to fund necessary
Build External infrastructure improvements to maintain Central San's level of service and protect public
Customer health and the environment through the Central San Academy, 75th Anniversary event,
Relationships student education programs, tours, and more.
and Awareness
Perform outreach to customers on projects that impact their communities such as
construction, pumping station improvements, and sister agency interconnections
promoting the use of recycled water.
Budget Overview by Expense Cate or
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Descriptio Budget Budget
.4 1 Budget* Actual* Budget* Projected* Budget Variance($) Variance(%)
Salaries&Wages $732,452 $681,848 $747,972 $745,000 $784,189 $36,217 4.8%
Employee Benefits 216,536 232,989 192,229 209,818 194,341 2,112 1.1%
Unfunded Liabilities 226,934 228,449 220,602 216,851 248,971 28,369 12.9%
Purchased Property Services
Repairs&Maintenance 1,000 510 1,000 - 1,000 -
Other Purchased Services 810,000 580,526 705,000 567,500 786,000 81,000 11.5%
Professional Services 3,500 1,028 3,500 1,500 6,500 3,000 85.7%
Technical Services 391,000 201,466 306,000 261,000 263,500 (42,500) -13.9%
Other Services 415,500 378,032 395,500 305,000 516,000 120,500 30.5%
Supplies&Materials
General Supplies 61,675 58,012 61,675 60,333 62,050 375 0.6%
Other Expenses 45,830 32,694 52,430 36,800 51,530 (900) 1.7%
Memberships 19,130 6,966 20,230 15,800 21,280 1,050 5.2%
Training&Meetings 24,700 21,094 27,200 20,500 26,250 (950) -3.5%
Miscellaneous Other 2,000 4,634 5,000 500 4,000 (1000) -20.0%
Total $2,094,427 $1,815,028 $1,980,908 $1,836,302 $2,128,081 $147,173 7.4%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements
EmployeesFY 2018-19
NWRegular Status
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
Total 5.0 6.0 6.0
IFY 2018-19
NatUrnited Duration Employees
Actual
Graphic Design Summer Student 1.0 1.0 1.0
Intern - 1.0 1.0
Total 1.0 2.0 2.0
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
Budget Modifications and Contributions to Key Priorities
The Communication Services and Intergovernmental Relations Division Operating Budget for
FY 2020-21 is $2.13 million, a $147,000 or 7.4% increase over the $1.98 million budget in FY 2019-20.
Salaries & Wages include the agency-wide cost-of-living adjustment and increases due to step
advancements. The increase in contracted Other Services is due to higher anticipated Reprographic
Service Center provider costs with Central San's upcoming 75th Anniversary Signature Event in
FY 2020-21.
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 the 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. Various interim and annual financial reports are prepared,
reviewed, and analyzed by this division and provided to the Board, Finance Committee, General
Manager, and other Divisions essential for decision making and budget monitoring purposes. Central
San is subject to an annual independent audit, which is administered and coordinated by this division.
The Finance Division assembles the Comprehensive Annual Financial Report (CAFR), which is submitted
annually to the Board and the Government Finance Officers Association (GFOA) to be considered for
the prestigious Certificate of Achievement for Excellence in Financial Reporting award. The Finance
Division also ensures Central San's annual budget meets the requirements of the GFOA's Distinguished
Budget Presentation award, for which it is submitted annually.
FY 2019-20 Strategic Accomplishments
Be a fiscally responsible and effective wastewater utility
• Spearheaded the establishment of a new Rate Stabilization Fund reserve account in
the Running Expense and Sewer Construction funds to help hedge against the
adverse impacts of cost pressure volatility on sewer service charge (SSC) stability.
• Fully funded the Other Post-Employment Benefits (OPEB) actuarially determined
contribution and paid an additional $1.25 million toward the unfunded actuarial
accrued liability (UAAL).
• Fully funded the actuarially determined contribution requirements determined by
the Contra Costa County Employees' Retirement Association (CCCERA) pension
administrator and paid an additional $1.25 million toward the Section 115
secondary pension trust.
• Restructured the chart of accounts based on best practice guidance issued by the
GFOA, implementing a more logical parent-child segment structure allowing for
greatly improved reporting functionalities.
• Issued accurate and timely interim monthly financial reports allowing for diligent
monitoring budget and accountability with FY 2019-20 projected to close under
budget.
• Received the GFOA Certificate of Achievement for Excellence in Financial Reporting
award for the 19th consecutive year.
• Received GFOA's Distinguished Budget Presentation award for the 2nd consecutive
year following Central San's first ever submission two years ago.
• 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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' Embrace technology, innovation,and environmental sustainability
• Designed new paperless workflows for key financial business processes (i.e.,
payables, procurement cards, online payments, remote deposits, etc.) improving
internal control structure, operational efficiency, and transparency.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
FYs 2018-20 IFY 2018-19 FY 2019-20 IFY 2020-21
Goal Metric Target Performance Performance Target
as . .
SSC Less Than SSC less than
Average of average of Bay
Bay Area Area agencies
Agencies SSC plus Ad
Service Valorem tax less
Affordability SSC Plus Ad Target Met :Ar Target Met ,or than average of
Maintained Valorem Tax Bay Area
Less Than Agencies
Average of
Bay Area
<_0.78%of
Agencies median
household
income
Standard and AAA from S&P
AAA (S&P)/ AAA (S&P)/ AAA (S&P)
Poor's (S&P) and . r and
Moddy's Credit Aa1 No Rating 4 r /Aa1 :�: Aa1 from
Ratings (Moody's) from Moody's (Moody's) Moody's
Debt Service >2 0 101.6 ��� >10 ;�; >_2.0
Coverage Ratio
Fully
Actual Reserves 170% (O&M)/
Funded
( � as a Percentage 100.0% 173% (Sewer ;Arr Reserves ;l: 100.0%
pr
of Target Construction)
Expected
Operating
Expenditures as a o o SAF —96% ;flr >-95%
Percentage of
>_90.0/ 96.5/0
Operating Budget
Reported
Material
Weaknesses or
Significant
Deficiencies in Zero (0) Zero (0) ;A; Zero (0) ;A; Zero (0)
Internal Controls
as Part of Annual
Financial Audit
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FY 2020-21 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
F, .
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 favorable variances towards these obligations or other priorities.
Conduct
Long Range Implement improvements to interim financial reports to address areas of interest to the
FinanciallPlanning Board.
"Go-live"with new ERP system and implement improved associated electronic business
Manage Costs workflows to improve operational efficiency and the effectiveness of internal controls.
Budget Overview by Expense Cate or
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto BudgettoAccount Description Budget* Actual* Budget* Projected* Budget Budget Budget&Wages $1,211,950 $920,144 1,232,280 $991,700 $1,144,873 $(87,407) -7.1%
Employee Benefits 461,426 362,041 373,414 248,173 379,502 6,088 1.6%
Unfunded Liabilities 343,153 284,529 311,815 306,515 340,336 28,521 9.1%
Purchased Property Services
Repairs&Maintenance 1,000 150 1,000 300 1,000 -
Other Purchased Services 391,800 250,700 447,700 257,406 361,600 (86,100) -19.2%
Professional Services 243,000 107,541 250,500 75,018 170,500 (80,000) -31.9%
Technical Services 2,800 550 42,600 42,460 - (42,600) -100.0%
Other Services 146,000 142,609 154,600 1 139,928 191,000 36,500 23.6%
Supplies&Materials
General Supplies 10,000 12,940 10,000 4,850 10,000 -
Other Expenses 23,275 4,441 33,165 9,640 19,500 (13,665) -41.2%
Memberships 3,775 1,114 22,365 2,090 2,400 (19,965) -89.3%
Training&Meetings 18,500 2,743 10,250 7,000 16,500 6,250 61.0%
Miscellaneous Other 1,000 584 550 550 600 50 9.1%
Total $2,442,604 $1,834,946 $2,409,374 $1,818,584 $2,256,811 $(152,563) -6.3%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements
FY 2018-19
Regular Status . .yees Year-End IFY 2i i IFY 2020-21
Actual
Accountant 2.0 2.0 2.0
Accounting Technician III 2.0 3.0 3.0
Finance Administrator 2.0 2.0 2.0
Finance Manager - 1.0 1.0
Total 6.0 8.0 8.0
Budget Modifications and Contributions to Key Priorities
The Finance Division Operating Budget for FY 2020-21 is $2.26 million, which represents a reduction of
$153,000 (6.3%) from the $2.41 million budget in FY 2019-20. Salaries & Wages include the
agency-wide cost-of-living adjustment, increases due to step advancements, offset by reductions due
to attrition and lower costs for new employees. The decrease in the budget for Salaries & Wages is
driven largely by the transfer of a Temporary Senior Internal Auditor position (previously included in
the Finance Division's FY 2019-20 budget) to the Office of the General Manager. The overall net
reduction in Other Purchased Services category is a result of reduced temporary staffing needs
anticipated with the new ERP expected to "go-live" July 1, 2020, immediately preceding the start of
FY 2020-21.
Finance supports Central San by providing transparent financial information and works, in conjunction
with the Planning & Development Services Division, 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 continue working with other divisions to implement various modules of the new
Oracle Cloud Fusion ERP, as part of the ERP System Replacement Project.
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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 using
technology.
FY 2019-20 Strategic Accomplishments
■• 6 Provide exceptional customer service and maintain an excellent reputation in the
community
• Awarded Municipal Information Systems Association of California Award for
Excellence in IT Practices for the third year in a row.
• Replaced both internal intranet sites with a more customer-friendly platform, with
assistance from the Communication Services and Intergovernmental Relations
Division.
■ • ■ Recruit,develop,and retain a highly trained and safe workforce
. R • Deployed laptops to support teleworking during the COVID-19 pandemic.
�
• Supported staff in transition to Microsoft Teams to facilitate increased
communication and productivity and to conduct meetings, including Board
meetings, remotely.
• • Maintain a reliable infrastructure
• Worked with Engineering during the construction of a new, more secure Data Center
and began migrating systems from the old Data Center to the new one.
` Embrace technology, innovation,and environmental sustainability
• Integrated e-Builder with the new Oracle ERP system for improved Engineering
project management abilities.
• Coordinated and implemented the first stages of the new Oracle ERP system,
including the Core Human Resources and much of the Core Financials systems.
• Coordinated and assisted with implementation and project management for new
Oracle permitting system.
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FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
FYs 2018-20 FY 2018-19 FY 2019-20 IFY 2020-21
..
l Metric Target Performance Performance Target
as of •
Information System
Outages Affecting 100% 100% ,�r 100% •o•
Normal Business Uptime Uptime ' ' Uptime i 100%Uptime
Operations
KHData Backup and Zero(0) Zero(0) '�� Zero(0) 11 r Zero(0)
Recovery Lost Data Lost Data ' r Lost Data ' ' Lost Data
FY 2020-21 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
ED
Build External
Customer Relationships
and Awareness Be well underway in the implementation of the new ERP system,with a goal of completing
both the financial and human resources components by early 2021.
Manage Costs
Protect District Complete construction of new Data Center and migration of equipment into the new
Personnel and Assets location.
from Threats and
Emergencies
Replace desk phones with new digital phones equipped with advanced mobile and
Encourage the Review collaboration features.
and Testing of
Technology to Optimize
and Modernize
Business Operations Explore options to replace legacy permitting and billing systems.
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Budget Overview by Expense Category
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto BudgettoAccount Description Budget* Actual* Budget* Projected* Budget Budget Budget&Wages $1,569,307 $1,574,967 $1,661,338 $1,593,100 $1,758,890 $97,552 5.9%
Employee Benefits 729,744 688,993 688,200 555,845 695,355 7,155 1.0%
Unfunded Liabilities 509,668 523,944 524,113 515,203 574,924 50,811 9.7%
Purchased Property Services
Repairs&Maintenance 1,045,090 891,281 955,414 895,000 1,294,101 338,687 35.5%
Other Purchased Services 110,000 50,046 110,000 25,000 56,500 (53,500) -48.6%
Professional Services - - - - 6,500 6,500 0.0%
Technical Services 110,000 50,046 110,000 25,000 50,000 (60,000) -54.6%
Supplies&Materials 138,000 143,391 119,000 117,700 121,500 2,500 2.1%
Utilities&Fuel 129,800 135,108 109,500 108,700 112,000 2,500 2.3%
General Supplies 8,200 8,282 1 9,500 9,000 9,500 -
Other Expenses 35,525 15,526 35,525 16,300 26,050 (9,475) -26.7%
Memberships 375 360 375 500 500 125 33.3%
Training&Meetings 34,950 15,166 39,950 15,200 24,950 (10,000) 28.6%
Miscellaneous Other 200 200 600 600 400 200.0%
Total $4,137,334 $3,888,148 $4,093,590 $3,718,148 $4,527,320 $433,730 10.6%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
Personnel Requirements
EmployeesFY 2018-19
Regular Status
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
Budget Modifications and Contributions to Key Priorities
The Information Technology Division Operating Budget for FY 2020-21 is $4.53 million, an increase of
$434,000 (10.6%) over the $4.09 million budget in FY 2019-20. The increase in Salaries & Wages
includes the agency-wide cost-of-living adjustment and increases due to step and personnel
advancements. Increases in Repairs & Maintenance are largely attributable to new support and
licensing costs related to the new Oracle Cloud ERP and permitting system expected to "go live" in
FY 2020-21. The reduction in Technical Services budgeted was a result of the drone security program
budgeted in the prior year being dropped as not being feasible prospectively, upon further research.
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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 is
responsible for surplus disposition.
FY 2019-20 Strategic Accomplishments
+ + Provide exceptional customer service and maintain an excellent reputation in the
community
• Received the Achievement of Excellence in Procurement Award for the 9th
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 500 procurement requests while maintaining an average five-star
rating on internal customer satisfaction surveys.
Strive to meet regulatory requirements
(� • Updated Board Policy No. BP 035—Purchasing Policy.
1
Be a fiscally responsible and effective wastewater utility
• Leveraged spend through annual requirements contracts for 39% of the total
procurement spend for goods and services, not including construction,
construction-related professional services, and utility payments. This improved
efficiency, shortened 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.
• Leveraged the buying power of public entities by utilizing sourced cooperative
purchasing agreements.
• Completed Contract Management Controls Audit.
• Participated in the Bay Area Chemical Consortium bidding process, resulting in
awards for aluminum sulfate, sodium hypochlorite, and sodium hydroxide.
• Completed cycle counts of warehouse inventory, including counting 5,078 total line
items for a total piece count of 71,592 and total value count of$1,928,372.
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Recruit,develop,and retain a highly trained and safe workforce
■�� • Successfully trained new Purchasing staff as a result of significant staffing changes.
0 I• Implemented business process changes to strategically ensure that procurement
resources are being utilized efficiently.
Maintain a reliable infrastructure
• Prioritized and resolved various urgent requests for procurements related to the
PG&E Public Safety Power Shutoffs (PSPS) and the COVID-19 pandemic, such as
critical equipment and supplies, maintenance and repair services, fuel, and
equipment rentals.
• Successfully managed the inventory investment by reducing the difference between
the inventory net value and the general ledger amount to less than 1%.
• Maintained efficient levels of inventory, enabling Operations to conduct their work
without interruption to maintenance, repairs and operations.
Embrace technology, innovation,and environmental sustainability
• Implemented electronic signature technology for contracts and agreements,
increasing functionality, visibility and tracking, improving processing time, and
reducing the use of paper.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
FYs 2018- FY 2018-19 FY 2019-20
20 Target Performance Performance FY 2020-21 Target
as . .
r. Purchasing Internal N/A
Customer Survey Rating >_70% 100% 1 r 100% j ; Not a Metric in the
of Satisfactory or Better FYs 2020-22 Strategic Plan
Difference in Inventory
Value in Purchasing
Database vs.Value 51% 0.93% 4 r 1.22% 1 r <_1%
Submitted to
Accounting
i� Accuracy of Physical
Inventory Count >_95% 99% 4 r 99% j >_95%
vs. Book Value
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FY 2020-21 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 2020-21
ECTIM-11115SYMM
ma
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
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.
Budget Overview bV Expense Category
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto BudgettoAccount Description Budget* Actual* Budget* Projected* Budget Budget Budget&Wages $1,058,883 $904,541 $1,165,618 $886,900 $1,108,279 $(57,339) -4.9%
Employee Benefits 508,940 461,731 475,397 412,420 437,676 (37,721) -7.9%
Unfunded Liabilities 346,563 298,307 345,573 339,573 333,314 (12,259) -3.6%
Purchased Property Services 24,000 10,000 24,000 24,000 21,000 (3,000) -12.5%
Repairs&Maintenance 23,000 10,000 23,000 23,000 20,000 (3,000) -13.4%
Rentals 1,000 - 1,000 1,000 1,000
Other Purchased Services 84,000 63,490 84,000 71,000 77,000 (7,000) -8.3%
Professional Services 35,000 21,196 35,000 30,000 36,000 1,000 2.9%
Technical Services 48,000 41,745 48,000 40,000 40,000 (8,000) -16.7%
Other Services 1,000 549 1,000 1,000 1,000
Supplies&Materials
General Supplies 14,000 6,659 14,000 14,000 14,000
Other Expenses 14,900 2,843 14,900 10,500 14,900 -
Memberships 3,800 522 3,800 3,800 3,700 (100) -2.6%
Training&Meetings 10,500 1,551 10,500 6,000 10,500 -
Miscellaneous Other 600 770 600 700 700 100 16.7%
Total $2,051,286 $1,747,571 $2,123,488 $1,758,518 $2,006,169 $(117,319) -5.5%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements
FY 2018-19
Regular Status . .yees Year-End FY 2i2020-21
Actual
Buyer - - 1.0
Materials Coordinator 2.0 1.0 1.0
Materials Services Supervisor 1.0 1.0 1.0
Purchasing and Materials Manager 1.0 1.0 1.0
Senior Buyer 2.0 3.0 2.0
Senior Materials Coordinator 1.0 2.0 2.0
Total 7.0 8.0 8.0
EmployeesFY 2018-19
Limited Duration
Actual
Warehouse Summer Student 1.0 - 1.0
Total 1.0 - 1.0
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
Budget Modifications and Contributions to Key Priorities
The Purchasing and Materials Services Division Operating Budget for FY 2020-21 is $2.0 million, which
represents a 5% reduction compared to the $2.1 million budget in FY 2019-20. Salaries & Wages
include the agency-wide cost-of-living adjustment. The overall budgetary reduction is primarily a result
of a Senior Buyer position budgeted in the prior year being reduced to a lower-level Buyer position for
a new hire expected in FY 2020-21, and other miscellaneous reductions. The reduction in Technical
Services resulted from the elimination of a temporary warehouse position next year.
The division is helping to address the overall challenges facing Central San by working to ensure there
are sufficient procurement processing capacity in light of increased contracting for infrastructure
needs. FY 2020-21 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 supports Central San by enhancing its capacity to identify, evaluate and respond to
current and emerging risks. It manages workers' compensation, liability claims, security programs,
insurance procurement, self-insurance funding, contract and insurance review, litigation support,
emergency preparedness and response programs, and coordinates Central San's Enterprise Risk
Management program.
FY 2019-20 Strategic Accomplishments
Be a fiscally responsible and effective wastewater utility
• Managed claims aggressively to reduce costs and facilitate resolution, resulting in an
average cost per overflow claim of$15,450.
• Continued to debrief after losses to identify and implement preventive measures.
• Established pre-loss measures to address or resolve situations affecting District
infrastructure.
• Conducted and presented results of Risk Control Audit to Management Team.
• Developed Enterprise Risk Management planning process and integrated strategic and
operational risk registers.
GOAL FIVE Maintain a reliable infrastructure
• • Presented an Emergency Management Program report to the Board.
• Updated Pandemic Response Plan and presented to the Board.
• Participated in the Operational Area Council to contribute to creating an effective and
multijurisdictional approach to disaster preparedness and planning.
• Activated Emergency Operations Center to monitor natural hazard conditions.
• Installed additional card readers.
• Increased security guard presence on main campus.
• Developed scope and design of pumping stations security improvements.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
Goal Metric FYs 2018-20 FY 2018-19 FY 2019-20 Performance FY 2020-21
Target Performance as of Q3 Target
Workers'Compensation
ON <_1.0 0.7 :�� 1.06 ;�9 <_1.0
iAKN Experience Modifier
Temporary Modified >95%of >_95%of
Duty Provided
Recordable . •
Recordable 83.3/0 It r 100.0% � ; Recordable
(Return to Work
Injuries Injuries
Program)
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FY 2020-21 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 FY 2020-21
Maintain an average cost per overflow claim of:5$25,000.
Maintain Actively seek opportunities to reduce risk in extant and developing business processes.
Financial
Stability and
Sustainability Initiate next steps in implementing Enterprise Risk Management model.
® Incorporate emergency response activities into Emergency Operations Plan and Continuity of
Operations where applicable.
Protect
Personnel and Continue implementation of recommendations from security assessment.
Assets from Finalize security system design criteria for use in upcoming capital projects.
Threats and
Emergencies
Complete review and update of the Continuity of Operations Plan.
Budget Overview by Expense Category
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget&Wages $262,093 $261,962 $286,980 $275,000 $305,518 $18,538 6.5%
Employee Benefits 101,561 123,277 122,766 117,800 126,307 3,541 2.9%
Unfunded Liabilities 87,307 91,744 91,484 89,929 101,438 9,954 10.9%
Purchased Property Services 42,500 16,934 44,000 36,500 430,000 386,000 877.3%
Repairs&Maintenance 42,500 16,934 44,000 36,500 45,000 1,000 2.3%
Security - - - - 385,000 385,000 >100%
Other Purchased Services 479,850 286,466 469,350 452,500 179,000 (290,350) -61.9%
Professional Services 26,350 10,445 21,350 50,000 51,000 29,650 138.9%
Technical Services 413,500 266,720 408,000 372,500 88,000 (320,000) -78.4%
Other Services 40,000 9,300 40,000 30,000 40,000 -
Supplies&Materials 58,000 72,809 11,000 12,000 19,000 8,000 72.7%
Utilities&Fuel 5,000 4,263 5,000 5,000 10,500 5,500 110.0%
General Supplies 53,000 68,547 6,000 7,000 8,500 2,500 41.7%
Other Expenses 792,000 795,471 842,295 838,800 467,200 (375,095) -44.5%
Insurance&Risk Management 779,500 779,505 825,000 825,000 450,000 (375,000) -45.5%
Memberships 2,500 2,879 3,295 2,200 3,200 (95) -2.9%
Training&Meetings 6,500 12,853 11,000 11,000 11,000 -
Miscellaneous Other 3,500 234 3,000 600 3,000
Total $1,823,308 $1,648,664 $1,867,875 $1,822,529 $1,628,463 ($239,412) -12.8%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements
FY 2018-19
Regular Status Employees Year-End FY 2019-20 FY 2020-21
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
Budget Modifications and Contributions to Key Priorities
The Risk Management Operating Budget for FY 2020-21 is $1.63 million, reflecting a $239,000 or 13%
decrease from the $1.87 million budget in FY 2019-20. Salaries & Wages include the agency-wide
cost-of-living adjustment and increases due to step advancements. Insurance & Risk Management
contributions to properly replenish the Self-Insurance Fund were notably lower than the prior year
budget following favorable loss results expected for FY 2019-20. The new chart of accounts
implemented as part of the ERP Replacement Project resulted in the reclassification of security
services, previously budgeted under Technical Services, to a new Security line item under the
"Purchased Property Services" category.
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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Engineering and Technical Services Department
The Engineering and Technical Services Department consists of three divisions and the Resource
Recovery Program that report to the Director of Engineering and Technical Services. These divisions
include Capital Projects, Environmental and Regulatory Compliance, and Planning and Development
Services. The primary function of this department is to ensure Central San's infrastructure is well
maintained and equipped for the future; working with development and permitting; and managing
existing regulatory permits, 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 the 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, and mainline plan review; financial planning for rate-setting; planning, piloting, and applied
research; and asset management and geographic information systems data (GIS). The Resource
Recovery Program oversees projects that enable Central San to help augment the region's water
supply, reduce reliance on non-renewable energy in a cost-effective manner, and expand efforts to
utilize data to become more efficient.
The divisions that comprise this department include the following:
• Office of the Director of Engineering and Technical Services
o Resource Recovery Program
• Capital Projects
• Environmental and Regulatory Compliance i
• Planning and Development Services
7 f 4:
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Office of the Director of Engineering and Technical Services
(including Resource Recovery Program)
OVERVIEW
The Director of Engineering and Technical Services oversees the Resource Recovery Program and the
Capital Projects, Environmental and Regulatory Compliance, and Planning and Development Services
Divisions. Staff from these divisions make significant contributions to the Recycled Water Program
discussed in the Operations Department section of this document.
Major accomplishments of the Office of the Director of Engineering and Technical Services span from
making important infrastructure upgrades to providing exceptional customer service through
innovative recycled water, household hazardous waste (HHW), and pharmaceutical collection
programs. This office was responsible for replacing five miles of pipes in Walnut Creek, Lafayette, and
Orinda with a 96% customer satisfaction rating; retrofitting the Plant Operations Building to meet
seismic standards; constructing a new Data Center to protect information technology equipment;
remodeling the Headquarters Office Building Lobby to be more customer friendly; beginning to pilot a
new permitting system; integrating project management software into the new ERP software with the
help of the IT Division; and preventing 1,577,000 pounds of HHW from entering local waterways
through collection at the HHW Collection Facility. This year also saw the formation of a new Central
San Smart initiative, which will drive the use of data to perform system-wide optimizations to make
Central San a more efficient operation. The Asset Management Program overseen by this office
continues to develop innovative tools such as the GIS Emergency Response Dashboard and Reliability
Engineering Tool.
The FY 2019-20 Strategic Accomplishments and performance against the key metrics, as well as the
FY 2020-21 Strategic Objectives, for the Director of Engineering and Technical Services are embedded
within the sections of the individual divisions and programs overseen by the Director, with the
exception of the Resource Recovery Program, whose accomplishments, performance, and objectives
are listed within this section, since the program operates directly within the budget of the Office of
the Director.
The Office of the Director of Engineering and Technical Services' staffing budget includes the
administrative staff supporting the Director of Engineering and Technical Services and the Resource
Recovery Program staff.
The Resource Recovery Program operates directly within the budget of the Office of the Director of
Engineering and Technical Services and manages projects which enable Central San to help augment
the region's water supply through partnering opportunities and expansion of recycled water use,
reduce reliance on non-renewable energy through cost-effective alternative methods, and leverage
data to improve operations by becoming a smart utility of the future. This program includes support
for the existing recycled water system, planned expansions, and other related projects that can also
be found in the Recycled Water Program section of this document.
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FY 2019-20 Strategic Accomplishments — Resource Recovery Program
Embrace technology, innovation,and environmental sustainability
• Formed a Central San Smart Steering Committee to identify projects to optimize
operations, improve asset management, increase energy efficiency and safety, and
reduce facility management costs.
• Identified projects under the Central San Smart initiative, nominated project
champions, and formed project task forces.
• Developed Request for Proposals (RFP)for a Power Purchase Agreement for a 1.75-
megawatt solar energy project that meets the cost-effectiveness criteria in Central
San's Energy Policy.
• Began investigating the growing challenge of recycling certain materials in order to
obtain a better understanding of the issue from the agencies in the service area and
how it can be overcome.
• Leading the water exchange project to augment the regional water supply.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets - Resourse
Recovery Program
Goal Metric FYs 2018-20 FY 2018-19 FY 2019-20 Performance FY 2020-21
Target Performance as of Q3 Target
>_18 Million >_18 Million
kWh (kilowatt hour)of kWh per Year kWh per
Electricity Produced by
(Reported as a 22.7 Year
■ r 22.4 Million kWh
Rolling Million 4 r ;�; (Reported as
Cogeneration Using
Natural Gas Average) kWh a Rolling
Average)
>_ >_220,000220,000 kWh kWh Per
kWh of Solar Power Per Year 299,000 ��� 286,000 kWh ;A: Year
M`7
Produced at CSO and (Reported as a kWh • r ' ' (Reported as
the HHWCF Rolling
Average) a Rolling
Average)
kWh of Solar Power Board
Produced by a New
Execution
Solar Array Near the N/A
Treatment Plant of PPA
Campus Contract
Projects initiated under N/A >_3
Central San Smart
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FY 2020-21 Strategic Objectives - Resource Recovery Program
In the coming fiscal year, this program will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
.. Objective
RIInitiate a cost-effective 1.75 MW solar energy project available for Central San's operation
Reduce Reliance on using a PPA.
Non-Renewable Energy
Commence at least three projects as part of the Central San Smart initiative, including the
Implement the optimization of the treatment plant asset handover process and development of an asset
Central San Smart health indicator tool.
Initiative
Budget Overview by Expense Category- Office of the Director of Engineering and Technical
Services (including Resource Recovery Program)
1WN 2018-1!9rFY 2018 1 WY 2019-20 FY 2019-20 FY 2020-21
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
6r Variance(I Variance
Salaries&Wages $344,923 $380,413 $355,891 $471,100 $658,616 $302,725 85.1%
Employee Benefits 111,801 111,887 103,030 - 161,191 58,161 56.5%
Unfunded Liabilities 157,388 137,458 136,747 204,462 67,715 49.5%
Other Purchased Services - - 86,000 86,000 >100%
Technical Services 6,000 6,000 >100%
Other Services - - - 80,000 80,000 >100%
Other Expenses 20,546 10,395 20,390 10,648 22,644 2,254 11.1%
Memberships 796 504 640 648 1,144 504 78.8%
Training&Meetings 19,000 9,890 19,000 10,000 21,500 2,500 13.2%
Miscellaneous Other 750 - 750 - - (750) -100.0%
Total $634,658 $640,153 $616,058 $481,748 $1,132,913 $516,855 83.9%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements - Office of the Director of Engineering and Technical Services
IL
Administrative Services Supervisor 1.0 1.0 1.0
Director of Engineering&Technical Services 1.0 1.0 1.0
Total 2.0 2.0 2.0
Personnel Re uirements - Resource RecoveEy Program
ActualIFY 2018-19
Regular Status Employees Year-End FY 2019-20 FY 2020-21
Engineering Assistant III 1.0 1.0 1.0
Program Manager .5 .5 .5
Total 1.5 1.5 1.5
*The above four positions were presented as part of Planning and Development Services Division budget in prior years.
Budget Modifications and Contributions to Key Priorities - Office of the Director of
Engineering and Technical Services (including Resource Recovery Program)
As described previously in the Financial Summary section of the budget book, as part of its
implementation of a new ERP system and revised chart of accounts, new org units were established for
director functions overseeing each department of Central San. In prior budgets, costs associated with
Department Director functions were reported within one of the child divisions of the overarching
parent department. For the Office of the Director of Engineering and Technical Services (including
Resource Recovery), prior year budget costs were previously reported within the Planning and
Development Services Division. While prior year columns in the budget table above were largely
restated for this change, certain adjustments occurred prospectively.
The Office of the Director of Engineering and Technical Services Budget for FY 2020-21 is $1.13 million,
a $517,000 or 84% increase over the $616,000 budget in FY 2019-20, as restated. This increase is
primarily attributable to transferring costs associated with the Resource Recovery Program as well as
certain administrative support staff from the Planning and Development Services Division in the prior
year. Salaries & Wages includes the agency-wide cost-of-living adjustment as well as increases due to
step advancements.
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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 rehabilitate or improve 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. All informal and formal public works
design and construction projects are conducted under this division.
FY 2019-20 Strategic Accomplishments
■ • ■ Provide exceptional customer service and maintain an excellent reputation in the
r community
• Received 100%customer satisfaction rating for the Walnut Creek Sewer Renovations,
Phase 13 construction project.
• Received 94%customer satisfaction rating for the South Orinda Sewer Renovations,
Phase 7 construction project.
• Received 93%customer satisfaction rating for the Lafayette Sewer Renovations, Phase
13 construction project.
• Remodeled lobby to a more accessible and customer-friendly environment.
• Continued to coordinate construction projects with local jurisdictions and other
agencies to lessen construction impacts to the community.
• Restricted sewer construction projects not to perform activities in backyard
easements during COVID-19.
Be a fiscally responsible and effective wastewater utility
• Implemented the use of the Uniform Public Construction Cost Accounting Act
(UPCCAA)for savings on administrative costs of bidding and streamlining the bidding
process for informal projects.
• Executed blanket contracts to cover similar work shared by multiple projects to save
on engineering, administration, and other costs.
• Continued to evaluate, design, and manage construction sewer renovation projects
in-house at costs below the industry standards or compared to outside services.
. . Maintain a reliable infrastructure
• Completed several critical projects at the treatment plant, including the Treatment
Plant Piping Renovations, Phase 9; Plant Operations Building Seismic Upgrades; and
made significant progress on the Mechanical and Concrete Renovations Project.
• Completed sewer renovation projects in Walnut Creek, Lafayette, Orinda, and other
nearby communities.
• Started several new projects including the Annual Infrastructure Replacement Project;
Treatment Plant Piping Renovations, Phase 10; and construction of the Pump Station
Upgrades, Phase 1.
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Embrace technology, innovation,and environmental sustainability
• Completed a filter plant pilot under the Filter Plant and Clearwell Improvements
Project to cost effectively produce better Title 22 recycled water.
• Continued to design and perform constructability reviews using three-dimensional
modeling under the Solids Handling Facility Improvements Project.
• Implemented online meetings and interactions to reduce travel and save time.
• Continued to expand recycled water use by increasing the number of restrooms and
Central San facilities that can benefit from the water source.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
Goal Metric FYs 2018-20 FY 2018-19 FY i Performance FY 2020-21
Target Performance as of Q3 Target
.. . Average Customer
Satisfaction Rating on >_95% 89% r 96% :�i >_95%
®
Construction Projects
>_0.5%of o >_6.0 Miles of
Miles of Pipeline Assets 0.4% J r 0.3/0(5.1 Sewers
Replaced 7.6 Miles ;�rr Miles) due to ;
p ( (6.1 miles) COVID-19 Replaced or
Per Year) Rehabilitated
Capital Expenditures as
® a Percentage of Capital0 84%Capital 'fir 89% i�r >_90%
Budgeted Cash Flow >_90� , r ■ r
Including Carry Forward
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FY 2020-21 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/Strategy • . 2020-21
Successfully bid and award the Solids Handling Facility Improvements Project,which will
include air pollution control equipment needed to reliably comply with current air
regulations.
Successfully bid and award the Filter Plant and Clearwell Improvements-Phase 1A Project,
which will include replacing critical electrical gear and increase reliability at recycled water
storage facilities.
Achieve 100%
Compliance in Successfully bid and award the Influent Pump Electrical Improvements Project,which will
All Regulations replace the variable frequency drives(VFDs)at the Headworks Facility at the treatment
plant.
Successfully construct the Outfall Improvements Phase 7 Project,which will inspect and
repair the 72-ich final effluent pipeline that travels from the treatment plant to Suisun Bay as
noted in Central San's National Pollutant Discharge Elimination System (NPDES) permit.
Continue to use the Uniform Public Construction Cost Accounting Act to help streamline
infrastructure replacement projects using informal bidding and maintain a contractors list for
Maintain Financial projects under$200,000.
Stability and Enter into a Financing Agreement for the California State Revolving Fund(SRF)loan to help
Sustainability supplement the construction costs of the Solids Handling Improvements Project.
Objective for FY 2020-21
RN Continue to replace sewers in poor condition and respond to urgent or emergency sewer
repairs throughout the service area in a timely manner.
Execute Replace sewers needing difficult or frequent maintenance to allow the Collection System
Long-Term Capital Operations Division to focus on other sewers and reduce sanitary sewer overflows.
Renewal and Deliver projects on time and on budget using new construction management software,e-
Replacement Program Builder and Oracle.
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Budget Overview by Expense Cate or
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
Variance($) Variance I%)
Salaries&Wages $1,959,112 $1,812,042 $1,960,752 $1,996,000 $2,135,534 $174,782 8.9%
Employee Benefits (1,851,611) (1,956,639) (2,238,431) (2,246,063) (2,310,273) (71,842) 3.2%
Unfunded Liabilities 585,833 587,921 595,475 603,046 692,954 97,479 16.4%
Purchased Property Services 4,000 2,496 4,000 3,900 223,000 219,000 5475.0%
Repairs&Maintenance 3,000 2,496 3,000 2,900 3,000 -
Security - - - - 219,000 219,000 >100%
Rentals 1,000 - 1,000 1,000 1,000 -
Other Purchased Services 41,100 26,387 35,325 19,725 35,000 (325) -0.9%
Technical Services 40,100 26,326 34,325 19,225 34,000 (325) -1.0%
Other Services 1,000 61 1,000 500 1,000 -
Supplies&Materials 51,500 42,570 52,800 49,800 54,800 2,000 3.8%
Utilities&Fuel 22,800 19,929 19,200 20,600 21,600 2,400 12.5%
General Supplies 28,700 22,641 33,600 29,200 33,200 (400) -1.2%
Other Expenses 45,920 28,546 45,920 36,310 52,155 6,235 13.6%
Memberships 8,520 5,014 8,250 9.010 10,155 1,635 19.2%
Training&Meetings 36,600 23,442 36,600 27,000 41,000 4,400 12.0%
Miscellaneous Other 800 89 800 300 1,000 200 25.0%
Total $835,854 $543,323 $455,841 $462,718 $883,170 $427,329 93.8%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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 2018-19
EmployeesRegular Status
Actual
Administrative Assistant 2.0 2.0 2.0
Assistant Engineer 6.0 5.0 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 1.0 1.0
Engineering Assistant 1/11 0.0 1.0 1.0
Engineering Assistant 111 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 1.0 1.0 1.0
Total 27.0 29.0 29.0
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Limited Duration FY 2018-19 Year-End FY 2019-20 2020-21
Employees Actual
Summer Student 3.0 3.0 3.0
Intern 3.0 3.0 4.0
Total 6.0 6.0 7.0
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
Budget Modifications and Contributions to Key Priorities
The Capital Projects Operating Budget for FY 2020-21 is $883,000, a $427,000 or 94% increase over the
$456,000 budget in FY 2019-20. Salaries & Wages include the agency-wide cost-of-living adjustment as
well as increases due to step advancements, largely offset by additional time being charged to work for
capital projects. This division's overall budgetary increase is mainly attributable to a newly budgeted
item for on-site security measures that will be necessary to counteract the significant increase in
non-employee foot traffic on the treatment plant premises in conjunction with large-scale treatment
plant improvement projects planned next year such as the Solids Handling Facility Improvements
Project.
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 monitors Central San's permitted businesses and
industrial customers for compliance with all applicable requirements to protect the environment as
well as Central San's assets; manages the Household Hazardous Waste (HHW) 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 regulatory agency
staff and boards, political bodies, committees, and the general public. Through active participation in
the Bay Area Clean Water Agencies (BACWA), 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.
FY 2019-20 Strategic Accomplishments
■ ' Provide exceptional customer service and maintain an excellent reputation in the
r community
• Oversaw over 57,000 visits to the HHW Collection Facility and Residential Recycled
Water Fill Station by residents, small businesses, reuse customers, retail partners, and
fill station users.
Strive to meet regulatory requirements
` • Achieved 22nd year of continuous compliance with all National Pollutant Discharge
Elimination System (NPDES) permit requirements governing wastewater discharge.
• Submitted Title V permit renewal application to Bay Area Air Quality Management
District(BAAQMD).
• Completed pretreatment and stormwater inspections.
• Collected 1,577,000 pounds of HHW prior to the facility closing on March 16 due to
the COVID-19 pandemic, which is 1% less than the total collected last fiscal year.
• Collected 6,386 pounds of pharmaceuticals.
• Maintained 2019 anthropogenic greenhouse gas (GHG) emissions below the Cap and
Trade inclusion threshold.
• Developed health risk reduction strategies in preparation for compliance with BAAQMD
Rule 11-18.
• Completed root cause analyses on incidences of non-compliance with air permit
requirements.
• Reviewed and commented on proposed regulations to ensure they are both practical
and protective.
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• Division Manager served as Chair of the BACWA Executive Board and staff served in
leadership roles on associated committees.
• Worked with BACWA to procure second regional Nutrient Watershed Permit.
• Worked with Division of Safety of Dams to obtain "low hazard" determination for
clearwell dam.
• Initiated District-wide Spill Prevention, Control, and Countermeasure Program
revamp efforts.
• Submitted 2019 Five-Year Review Report for Soil Cap to Department of Toxic
Substances.
GOAL Maintain a reliable infrastructure
• Completed annual Basin A South soil cap seep repairs.
• Obtained regulatory permits for Outfall Improvements Project, Phase 7.
Embrace technology, innovation,and environmental sustainability
• Continued use of tablets in the field for Environmental Compliance inspections.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
FYs 2018-20 FY 2018-19 FY 2019-20 FY 2020-21
..
l Metric Target Performance Performance Target
as . .
Zero(0) Zero (0) ;fir Zero(0) ;flr Zero (0)
It.a� NPDES Compliance , r , r
Violations Violations Violations Violations
3 Violations
(Will be 5 Violations
(Will be
Zero(0) Addressed , r , r Zero(0)
a Title V Compliance 4Ar Addressed with ;�r
Violations with New New Wet Violations
Wet
Scrubber) Scrubber)
Recycled Water Zero(0) Zero(0) ;�r Zero(0) ;fir Zero(0)
Title 22 Compliance Violations Violations ' r Violations ' r Violations
23,038 MT
Anthropogenic GHG <25,000 COze On Track to
'I r � r <25,000 MT
Emissions Metric Tons (Pre-verified ;
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FY 2020-21 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/Strategy • . 2020-21
` Strive to meet all air permit requirements(Title V and Permit to Operate).
Achieve 100%
Compliance in All Strive to meet all wastewater-related permit requirements(NPDES Treatment Plant Permit,
Regulations Nutrients Watershed Permit, Polychlorinated Biphenyls,and Mercury Watershed Permit).
Budget Overview by Expense Category
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budget
Account Description Budget* Actual* Budget* Projected* Budget Budget Budge
Variance($) Variance lo".)
Salaries&Wages $3,594,027 $3,730,140 $3,831,724 $3,822,100 $3,960,913 $129,189 3.4%
Employee Benefits 1,480,320 1,519,525 1,416,357 1,464,428 1,482,826 66,469 4.7%
Unfunded Liabilities 1,140,247 1,270,385 1,205,956 1,221,826 1,307,155 101,199 8.4%
Purchased Property Services 650,425 573,497 690,625 773,800 841,625 151,000 21.9%
Repairs&Maintenance 104,000 58,683 94,000 82,000 94,000 -
Hauling&Disposal 501,925 475,798 551,625 650,900 701,425 149,800 27.2%
Rentals 8,000 5,438 6,500 4,900 5,200 (1,300) -20.0%
Cleaning 36,500 33,578 1 38,500 36,000 41,000 2,500 6.5%
Other Purchased Services 627,300 467,824 630,300 611,300 724,300 94,000 14.9%
Professional Services 6,000 (6,806) 6,000 4,000 6,000 -
Technical Services 594,500 457,475 598,500 588,000 696,000 97,500 16.3%
Other Services 26,800 17,156 25,800 19,300 22,300 (3,500) -13.6%
Supplies&Materials 327,000 338,795 346,800 345,650 356,700 9,900 2.9%
Utilities&Fuel 13,500 10,693 14,300 11,300 12,700 (1,600) -11.2%
General Supplies 313,500 328,102 332,500 334,350 344,000 11,500 3.5%
Other Expenses 578,080 402,214 506,441 429,819 486,246 (20,195) -4.0%
Memberships 526,655 362,435 455,016 386,544 434,671 (20,345) 4.5%
Training&Meetings 46,825 38,778 47,825 40,275 47,975 150 0.3%
Miscellaneous Other 4,600 1,001 3,600 3,000 3,600 -
Total $8,397,399 $8,302,381 $8,628,203 $8,668,923 $9,159,765 $531,562 6.2%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements
EmployeesIFY 2018-19
Regular Status
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 III 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
EmployeesFY 2018-19
16MELInfi.tedDuration
Actual
Laboratory Assistant Summer Student 2.0 2.0 1.0
Intern 1.5 2.0 2.0
Total 3.5 4.0 3.0
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
Budget Modifications and Contributions to Key Priorities
The Environmental and Regulatory Compliance Operating Budget for FY 2020-21 is $9.2 million, a
$532,000 or 6% increase over the $8.6 million budget in FY 2019-20. Salaries & Wages include the
agency-wide cost-of-living adjustment and increases due to step advancements. Hauling & Disposal
increased due to a new contract for hazardous waste disposal. Technical Services increased due to
expanded air source testing requirements.
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 (GIS), 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 ever-increasing
Capital Improvement Program needs.
FY 2019-20 Strategic Accomplishments
GOALONE Provide exceptional customer service and maintain an excellent reputation in the
r community
• Updated 2014 Standard Specifications for Design and Construction.
• Implemented convenient online payment options for customers in response to the
COVID-19 pandemic.
• Created a GIS Emergency Response Dashboard to track staffing resources during the
COVID-19 pandemic.
• Hosted collaborative Asset Management Program meeting with staff from San
Francisco Public Utilities Commission Wastewater Enterprise (SFPUC-WWE).
• Along with Collection System Operations (CSO) staff, co-hosted City of Oakland staff at
the CSO Facility to share information on asset management.
• Created "Wipes Are Costly to Sewer Agencies in California" map as a compelling
visual case study for advocacy and outreach of the wipes issue at the local and state
levels. The map has been selected for publication in the Esri Mop Book, Volume 35.
■ Be a fiscally responsible and effective wastewater utility
• Developed rate alternative scenarios that reduced 10-Year Capital Improvement Plan
(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, CIP, and general ratemaking principles at two Financial Workshops and a
Public Hearing.
• Prepared a State Revolving Fund (SRF) 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.
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• 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.
Maintain a reliable infrastructure
• Continued comprehensive two-year program to perform condition assessments for the
Steam and Aeration Blower Systems Renovations Project.
• Developed software for a Reliability Engineering Tool to see which assets do not
have preventive maintenance (PM) work order cycles, which assets have predictive
maintenance (PdM) (e.g., vibration analysis and temperature analysis) work order
cycles, and which assets have a maintenance program assessment (e.g., root cause
analysis and Reliability Centered Maintenance (RCM)) performed on them.
• Initiated a valve exercising program in CityWorks for recycled water distribution
system control valves.
• Added new layers in GeoPortal for annual sewer renovation planning forecast and
large diameter pipeline corrosion planning information.
' Embrace technology, innovation,and environmental sustainability
• Completed evaluation of a pilot project for new recycled water meter technology
- (Water Pigeon), initiated a second trial phase using a new design from the vendor, and
purchased additional units to reduce staff time devoted to meter reading.
• Completed white paper to provide for proof-of-concept and feasibility evaluation of
new tertiary membrane filtration to improve recycled water production in lieu of
renovating existing filters.
• Provided support to further the Refinery Recycled Water Exchange Project with
Contra Costa Water District (CCWD) and Valley Water.
• Optimized plan review workflow for Development Mainline Construction.
• Developed Septic Parcel Identification web application to assist in identifying parcels
that are potential septic conversion candidates.
• Optimized Asset Registry by enhancing GIS data structure through the Pressure
Relief Demotion Project, which streamlined the cleaning and inspection process by
eliminating duplication of cleaning efforts and decreasing the numbers of work
orders needed.
• Developed Pipeline Cleaning Schedules web application and analysis tool to optimize
how staff cleans the pipes using geospatial location information.
• Invited to speak on "The Next Generation Water Future" at 2019 American Water
Summit,focused on Leadership for a Sustainable America.
• Presented at the CityWorks 2019 Conference "Going Mobile."
• Presented paper on "Taking a Micro-Services Approach to Feature Manipulation
Engine (FME) Server Workspace Design" at the 2020 FME World Tour.
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• Presented paper on "Customer Showcase: Learn How Central San Uses ColdFusion to
Interconnect and Manage Enterprise Infrastructure Assets" at the 2019 ColdFusion
Summit.
• Was invited to presented paper on "The Pressure's On! Modeling the Way for Recycled
Water Purple Pipe Optimization" at the 2020 California Water Environment Association
Conference. The conference was postponed to August due to COVID-19.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
Goal Metric FY • •
FY Target as of i
Q3 Target
Median Customer
Satisfaction
Mgr 100% ��r 100%
Rating on Permit >_95.0% 100% ; r i
Counter (average rating)
Interactions
Sewer Service SSC Less Than
Charge(SSC) Average of Bay
Less Than Area Agencies
Median of
Bay Area SSC Plus Ad
Valorem Tax Less
Median Service Agencies r 'In
■ Than Average of
Target Met g; Target Met
Affordability SSC Plus Ad ; r Bay Area
Valorem Tax Agencies
Less Than <_0.78%of
Average of Median
Bay Area Household
Agencies Income
Large Diameter >_3 Miles Per
® Year for the
and Force Main N/A—not included in the
Condition FY 2018-20 Strategic Plan Next 5 Years
Assessment Starting in FY
2020-21
Pilot Test New >_3 Pilot Tests rr 6 Pilot Tests or @ � >_3 Pilot Tests
and Promising or Reviews 7 ,�r ,�r
Technology Per Year Reviews or Reviews
Present Research >3 Papers Per 6(2 papers and ;H:
Findings 3 Papers or iHi >_3 Papers or
Papers and ,
Year 4 presentations) r Presentations r Presentations
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FY 2020-21 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/Strategy • . 2020-21
.• . Host a Sewer Summit Workshop for partner Cities and County.
■
Deliver High-Quality Update and publish "Construction Guides"to assist Development Applicants.
Customer Service
Develop an interactive webmap for education outreach programs.
Work with CCWD and the City of Concord to supply recycled water to the Concord
Support Regional Community Reuse Project.
Development of
Local Water Supply
Successfully bid the Solids Handling Facility Improvements Project and submit all
Maintain Financial necessary SRF paperwork, including an amended budget request,to enter into the Final
Stability and Financing Agreement to receive loan proceeds.
Sustainability
Develop prioritization model for vertical assets.
Manage Assets
Optimally Throughout Implement the Large Diameter Pipe and Force Main Inspection and condition
assessment programs.
Their Lifecycle
Continue work on comprehensive two-year program to perform condition assessments
® for the Steam Aeration and Blower System Project.
Develop a planning tool for multi-year future capital spending which integrates with the
Execute Long-Term new Oracle ERP.
Capital Renewal and
Replacement Program Update the Comprehensive Wastewater Master Plan (CWMP)Technical Memos on Resiliency
and Vulnerability.
Implement and train staff on the new Oracle permitting software.
Evaluate and review new Sewer Service Billing software to replace SunGard.
Improve and Modernize
Operations through Evaluate and review remote manhole level monitoring solutions.
Technology and
Efficiency Measures Initiate Phase 2 of the Hydrothermal Processing of Wastewater Solids(HYPOWERS)
Pilot Project.
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Budget Overview by Expense Cate or
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 IFY 2020-21 Budgetto Budgetto
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
Salaries&Wages $4,099,980 $4,085,208 $4,224,701 $4,045,553 $4,329,561 $104,860 2.5%
Employee Benefits 649,382 612,278 385,354 550,363 573,751 188,397 48.9%
Unfunded Liabilities 1,277,975 1,342,504 1,297,871 1,453,482 1,459,773 161,902 12.5%
Purchased Property Services 62,250 26,033 40,400 24,400 33,400 (7,000) -17.3%
Repairs&Maintenance 59,400 23,407 35,400 19,400 28,400 (7,000) -19.8%
Rentals 2,850 2,626 5,000 5,000 5,000
Other Purchased Services 802,542 489,401 929,542 767,042 760,942 (168,600) -18.1%
Professional Services 165,000 140,902 165,000 102,000 102,500 (62,500) -37.9%
Technical Services 524,000 243,085 650,000 551,500 544,500 (105,500) -16.2%
Other Services 113,542 105,415 114,542 113,542 113,942 (600) -0.5%
Supplies&Materials 194,750 258,198 207,650 210,200 211,800 4,150 2.0%
Utilities&Fuel 136,900 223,839 149,800 151,200 155,800 6,000 4.0%
General Supplies 57,850 34,358 57,850 59,000 56,000 (1,850) -3.2%
Other Expenses 78,619 34,764 78,322 78,465 78,538 216 0.3%
Memberships 33,319 6,973 22,922 22,865 22,813 (109) -0.5%
Training&Meetings 39,200 25,761 49,300 51,500 48,875 (425) -0.9%
Miscellaneous Other 6,100 2,029 6,100 4,100 6,850 750 12.3%
Total $7,165,497 $6,848,386 $7,163,840 $7,129,505 $7,447,765 $283,925 4.0%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
Note:Some staff in this division are budgeted with the Capital Improvements Program. As a result,26%of their combined salary and
benefit expenses are paid for by the projects identified in the Capital Improvement Budget. The amounts above are net of the capitalized
administrative overhead transfer to the Sewer Construction Fund.
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Personnel Requirements FY 2018-19
EmployeesNNOW'Regular Status
Actual
Administrative Assistant 1.0 1.0 1.0
Asset Management Program Administrator - 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
Engineering Assistant III 5.0 5.0 4.0
Engineering Assistant 1/II 2.0 2.0 4.0
Engineering Technician 1/11 1.0 1.0 1.0
GIS Analyst 2.0 2.0 2.0
Maintenance Planner 1.0 1.0 -
Management Analyst 2.0 1.0 2.0
Planning and Development Services Division Manager 1.0 1.0 1.0
Senior Engineer 4.0 4.0 4.0
Senior Right-of-Way Agent 2.0 2.0 2.0
Total 33.0 33.0 34.0
EmployeesIFY 2018-19
6MWLL1m.1tedDur.ati1on
Actual
Engineering Assistant Summer Student 8.0 4.0 4.0
Intern 4.0 4.0 4.0
Total 12.0 8.0 8.0
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
Budget Modifications and Contributions to Key Priorities
The Planning and Development Services Division's Operating Budget for FY 2020-21 is $7.4 million,
reflecting an increase of approximately $284,000 (4%) over the prior year budget of$7.2 million in
FY 2019-20. Salaries & Wages include the agency-wide cost-of-living adjustment, increases due to step
advancements, as well as the addition of two new General Manager transitional positions necessary
for succession planning purposes and to assist at the permit counter during the new ERP
Implementation Project. The increase of these two transitional positions is accompanied by a
reduction in Technical Services.
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.
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Operations Department
The Operations Department consists of three divisions 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:
• Director of Operations
• Collection System Operations
• Plant Maintenance
• Plant Operations
• Recycled Water Program -A&I
,1111
1
'-1
oaf _ ==-
Page 156 of 358
Office of the Director of Operations
OVERVIEW
The Director of Operations serves as the Deputy General Manager and oversees the Collection System
Operations, Plant Maintenance, and Plant Operations Divisions. The Director is responsible for
providing these divisions with the resources and guidance needed to fulfill their missions.
Major accomplishments include achievement of a steadily decreasing sewer overflow rate; the 22nd
consecutive NACWA Platinum Peak Award, recognizing 100% compliance with Central San's
wastewater discharge permit; and a continually growing reliability-centered maintenance program.
With only 18 sanitary sewer overflows recorded as of March 31, Central San could potentially set a
new record low for overflows, thanks in large part to Collection System Operations' diligent and
optimized cleaning schedules and methods. Plant Operations maintained its compliance record while
working with Engineering to plan for large-scale capital improvements. Maintenance continues to add
trainings and certifications for staff, implement testing programs to monitor equipment, and integrate
data through technology tools, all to ensure that assets are optimally maintained to extend their
useful life as long as possible. In response to the COVID-19 pandemic, under the direction of the
Director of Operations, Operations staff as a whole acted quickly to implement safety measures to
protect its essential employees and continued service with no interruption.
The FY 2019-20 Strategic Accomplishments and performance against the key metrics, as well as the
FY 2020-21 Strategic Objectives, for the Director of Operations are embedded within the sections of
the individual divisions and programs overseen by the Director.
This office's staffing budget includes the administrative staff supporting the Deputy General
Manager/Director of Operations.
Budget Overview by Expense Category
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
Salaries&Wages $267,248 $268,522 $286,479 $554,000 $584,505 $298,026 104.0%
Employee Benefits 127,509 114,739 126,124 121,114 198,824 72,700 57.6%
Unfunded Liabilities 90,848 91,393 94,476 92,870 201,761 107,285 113.6%
Other Purchased Services 8,000 2,892 8,000 3,000 12,000 4,000 50.0%
Professional Services 1,000 2,892 1,000 2,500 5,000 4,000 400.0%
Technical Services 7,000 - 7,000 500 7,000 -
Supplies&Materials
General Supplies 20,400 17,462 20,400 20,400 20,400 -
Other Expenses 13,266 7,617 15,100 10,150 17,850 2,750 18.2%
Memberships 1,200 568 1,200 500 1,200 -
Training&Meetings 11,116 6,643 12,950 8,700 15,700 2,750 21.2%
Miscellaneous Other 950 406 950 950 950 -
Total $527,271 $502,625 $550,579 $801,534 $1,035,340 $484,761 88.1%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements
EmployeesFY 2018-19
Regular Status i
Actual
Administrative Assistant 2.0 2.0 2.0
Administrative Services Supervisor 1.0 1.0 1.0
Deputy General Manager/Director of Operations 1.0 1.0 1.0
Total 4.0 4.0 4.0
Budget Modifications and Contributions to Key Priorities
As described previously in the Financial Summary section of the budget book, as part of its
implementation of a new ERP system and revised functions chart of accounts, new org units were
established for Director functions overseeing each department of Central San. In prior budgets, costs
associated with Department Director functions were reported within one of the child divisions of the
overarching parent department. In the case of the Office of the Director of Operations, prior year
budget costs associated with this function were previously reported within the Plant Operations
Division of the Operations Department. While prior year columns in the budget table above were
largely restated for this change, certain adjustments occurred prospectively.
The Office of the Director of Operations Budget for FY 2020-21 is approximately$1.04 million, a
$485,000 or 88% increase over the $551,000 budget in FY 2019-20, as restated. This increase is
primarily attributable to transferring costs associated with administrative support for the Plant
Operations Division to the Office of the Director of Operations in FY 2020-21 to better reflect the actual
reporting hierarchy of Central San's current organizational chart. As reflected in the Personnel
Requirements table, several support positions were transferred to this divisional cost center in
FY 2020-21. Salaries & Wages includes the agency-wide cost-of-living adjustment as well as increases
due to step advancements.
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Collection System Operations
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 2019-20 Strategic Accomplishments
GOALONE Provide exceptional customer service and maintain an excellent reputation in the
community
• Responded to 213 customer service phone calls.
• Received and cleared over 22,508 USA locating requests on time.
• Along with Asset Management staff, co-hosted City of Oakland staff at the CSO Facility
to share information on asset management efforts.
■ ' Strive to meet regulatory requirements
`. • Responded to 18 sanitary sewer overflows.
' • Cleaned 569miles of sewers.
• Completed 12,714 work orders on schedule 99.22% of the time.
• Performed 21%of all cleaning work on "hotspots."
• Closed circuit televised 108 miles of sewers.
• Hosted 13 members of the State and Regional Water Quality Control Board for a tour of
CSO's facilities.
■• T EE, Be a fiscally responsible and effective wastewater utility
• Optimized 1-, 2-, 3-, and 6-month cleaning schedules to dispatch staff more efficiently
and clean sewers as needed to best prevent overflows.
Maintain a reliable infrastructure
• Completed 701 services on vehicles and equipment to maintain 100% uptime.
• Converted cleaning schedules from routine to scheduled maintenance to ensure each
line has a scheduled cleaning date.
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FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
Goal Metric FYs 2018-20 FY 2018-19 FY 2019-20 Performance FY 2020-21
Target Performance as of Q3 Target
Average Onsite
Response Time for
® Collection
520.0 Minutes 30.3 Minutes j�r 30.5 Minutes <_30.0 Minutes
System Emergency
Calls,During Working
Hours
Average Onsite
.. . Response Time for
r , r
Collection 530.0 Minutes 34.2 Minutes 34.3 Minutes4P <_40.0 Minutes
System Emergency
Calls,After Hours
.. Average Customer
® Service Rating for ?3.8 out of 4.0 3.9 out of 4.0 ;
Page 160 of 358
FY 2020-21 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/Strategy • . 2020-21
.. . 1111
MA
Deliver High- Continue to respond quickly to emergency calls both during and after work hours.
Quality Customer
Service
' Continue to proactively and optimally clean sewers to prevent overflows.
Achieve 100%
Compliance in All
Regulations Optimize cleaning schedule frequencies and location of work orders.
Begin using alternative diesel fuels for CSO vehicles, resulting in cleaner emissions, reduced
Maintain Financial maintenance,and improved reliability.
Stability and
Sustainability
Budget Overview by Expense Category
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto BudgettoAccount Description Budget* Actual* Budget* Projected* Budget Budget Budget&Wages $6,272,384 $6,435,490 $6,913,694 $6,594,900 $6,948,805 $35,111 0.5%
Employee Benefits 3,031,274 2,927,786 3,046,602 2,997,860 3,035,416 (11,186) -0.4%
Unfunded Liabilities 1,942,922 2,040,237 2,052,083 2,079,128 2,190,179 138,096 6.7%
Purchased Property Services 1,505,106 1,252,874 630,605 589,503 657,501 26,896 4.3%
Repairs&Maintenance 1,283,504 1,062,195 407,503 362,502 407,500 (3)
Hauling&Disposal 40,000 36,381 40,000 40,000 40,000 -
Security 21,000 14,495 19,500 19,500 16,500 (3000) -15.4%
Rentals 69,602 72,433 72,602 76,501 78,501 5,899 8.1%
Cleaning 91,000 67,369 1 91,000 91,000 115,000 24,000 26.4%
Other Purchased Services 80,680 77,725 951,780 955,253 951,880 100
Professional Services 7,500 2,752 7,000 7,000 7,700 700 10.0%
Technical Services 36,680 46,978 909,780 912,180 907,180 (2,600) -0.3%
Other Services 36,500 27,995 35,000 36,073 37,000 2,000 5.7%
Supplies&Materials 1,093,351 1,217,258 1,118,852 1,111,350 1,092,850 (26,002) -2.3%
Utilities&Fuel 375,400 430,521 393,100 393,100 393,100
General Supplies 717,951 786,737 725,752 718,250 699,750 (26,002) -3.6%
Other Expenses 34,343 26,147 36,523 36,497 39,935 3,412 9.3%
Memberships 14,642 13,515 16,822 16,797 17,235 413 2.5%
Training&Meetings 15,801 9,011 15,801 15,800 18,800 2,999 19%
Miscellaneous Other 3,900 3,621 3,900 3,900 3,900 -
Total $13,960,060 $13,977,517 $14,750,139 $14,364,491 $14,916,566 $166,427 1.1%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements FY 2018-19
Employeesgular Status i
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 18.0 18.0 18.0
Maintenance Crew Member 1/11 18.0 18.0 20.0
Maintenance Supervisor 4.0 4.0 4.0
Senior Engineer 1.0 1.0 1.0
Utility Worker 1.0 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 55.0 56.0 56.0
FY 2018-19
d Duration Employeesi
Actual
Laborer Summer Student 3.0 - -
Clerical Summer Student 1.0 - 1.0
Total 4.0 - 1.0
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
Budget Modifications and Contributions to Key Priorities
The Collection System Operations Operating Budget for FY 2020-21 is $14.9 million, a marginal
$116,000 or 1.1% increase over the $14.8 million budget in FY 2019-20. While this operational
division's budget largely remained steady, the overall net increase was primarily driven by increases in
known labor-related costs. Growth in Salaries & Wages includes the agency-wide cost-of-living
adjustment as well as increases due to step advancements. The increase in Cleaning Services is almost
entirely the result of an account reclassification of uniform cleaning services following the
implementation of a new ERP and chart of accounts. Uniform cleaning services were previously
reported under General Supplies, which is reporting an offsetting budgetary reduction in FY 2020-21.
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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 lifecycle
of the asset.
FY 2019-20 Strategic Accomplishments
•' • Strive to meet regulatory requirements
t • Monitored and managed Preventive Maintenance (PM) and Regulatory related work
' order schedule compliance.
• Maintained all equipment and systems to help achieve the NACWA Peak Performance
Platinum Award for the 22nd consecutive year.
■ ' ■ Recruit,develop,and retain a highly trained and safe workforce
• Improved Mechanical Maintenance Technician Trainee Program by updating the
training material and modifying the curriculum to better suit learning and development
in the subject matter. Added online TPC learning modules for trainee program.
• Added new technical learning libraries content.
• Enhanced hiring process to include a hands-on practical exam for Mechanical Shop
recruitments.
• Engaged with community and technical colleges' recruitment and program
development.
• Created a technical trades internship program and started with two interns in the
Mechanical Shop from Los Medanos College.
• Several staff have gained Level I certification in areas of asset condition monitoring
(ACM)techniques, such as Machinery Lubrication Technician and Infrared
Thermography.
• Three staff members obtained Certified Reliability Leader certification.
GOAL FIVE Maintain a reliable infrastructure
• Completed 17 Don't Just Fix It; Improve It(DJFI) initiatives to increase maintenance
effectiveness, lower costs, and increase equipment reliability.
• Completed 288 QA/QC Maintenance Planner updates to improve work orders by
incorporating Maintenance staff's suggestions.
• Completed 58 safety work orders.
• Successfully maintained operation of all 18 pumping stations during the PG&E Public
Safety Power Shutoffs (PSPS).
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• Continuously reviewed maintenance procedures and identified opportunities for
improvement as part of overall Maintenance strategy.This includes failure reporting
and corrective action process for continuous improvement.
• 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 maintainable technology.
• Increased accessibility of Asset Management and Reliability Engineering information,
including tracking DJFI initiatives, improving spares management, creating new
workflows to the CityWorks maintenance system, adding job plans to GeoPortal, and
creating links in GeoPortal to reliability analysis information and preventive and
predictive maintenance program tasks based on asset identification.
GOAL Six Embrace technology, innovation,and environmental sustainability
• Obtained new ACM/maintenance tools and equipment to increase work
efficiency, such as RDI Technologies' motion amplification and ultrasound
technologies for the Mechanical Shop.
• Made additions to the ACM program such as implementing a breaker overload
testing program and a 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.
• Working with Asset Management team creating
o Dashboard's for various key metrics in the TPMD.Added ACM templates for
each technology so to better monitor, analyze and act on exceptions.
o To create an Asset Health Monitoring system based on the asset condition
inspections and the ACM program analysis
o To update the asset hand off workflow to include new engineering standards
and enhance tracking of steps along the hand off workflow.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21
Goal Metric Target Performance Performance Target
as of Q3
® Safety-Prioritized Work
Orders Completed on 100% 87.0% ;�i 93.3% ;A; 100%
Time
® Regulatory Title V Work
Orders Completed on 100% 99.0% "Hr 91.4% ��; 100%
Time
® Planned Treatment Plant , r r
>_95% 83.8% ,�r 90.3% ,lr >_90%
' PM Completed on Time • r , r
® Planned Pumping Station >_95% Data N/A N/A—not a Metric in the
PM Completed on Time Unavailable* FYs 2020-22 Strategic Plan
EN DJFI work orders N/A—not a Metric in the >_35
completed FYs 2018-20 Strategic Plan
* Pumping Stations PM data is planned to be added to CityWorks by the end of 2020.
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FY 2020-21 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 2020-21
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 equipment at the optimal
frequency.
Manage Assets Utilize a repeatable and comprehensive approach to maintenance that optimizes asset lifecycle
Optimally to based on reliability,cost,and criticality,including continuing to perform additional Reliability Centered
Prolong Their Maintenance,Root Cause Analysis,PM Optimization analysis,and Defect Elimination initiatives on
Useful Life critical equipment and systems.
Drive the development of the Asset Centered Maintenance Program and integrate with analytics for
earliest warning of equipment degradation.
Budget Overview by Expense Category
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
Salaries&Wages $6,065,515 $5,863,860 $6,335,660 $6,180,800 $6,481,112 $145,452 2.3%
Employee Benefits 2,559,801 2,469,138 2,541,107 2,259,009 2,123,173 (417,934) -16.5%
Unfunded Liabilities 1,842,202 1,852,011 1,884,631 1,779,303 1,932,312 47,681 2.5%
Purchased Property Services 1,621,550 1,667,911 1,631,550 1,802,450 2,344,650 713,100 43.7%
Repairs&Maintenance 1,358,950 1,370,095 1,379,950 1,507,950 2,079,850 699,900 50.7%
Security 12,300 8,066 3,300 3,000 3,300 -
Rentals 76,500 125,129 76,500 114,500 84,500 8,000 10.5%
Cleaning 173,800 164,620 1 171,800 177,000 177,000 5,200 3.0%
Other Purchased Services 226,285 359,301 226,285 208,000 234,205 7,920 3.5%
Technical Services 196,900 323,542 196,900 190,000 204,900 8,000 4.1%
Other Services 29,385 35,759 29,385 18,000 29,305 (80) -0.3%
Supplies&Materials 2,521,250 2,393,215 2,447,450 2,248,050 2,453,050 5,600 0.2%
Utilities&Fuel 534,550 $562,440 534,550 548,350 555,150 20,600 3.9%
Chemicals 250,000 113,704 200,000 120,000 200,000 -
General Supplies 1.736,700 1,717,071 1,712,900 1,579,700 1,697,900 (15,000) -0.9%
Other Expenses 69,043 55,416 74,426 76,571 90,976 16,550 22.2%
Memberships 11,851 9,445 11,851 10,996 15,101 3,250 27.4%
Training&Meetings 55,392 45,305 60,775 63,775 74,075 13,300 21.9%
Miscellaneous Other 1,800 667 1,800 1,800 1,800 -
Total $14,905,646 $14,660,853 $15,141,109 $14,554,183 $15,659,478 $518,369 3.4%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
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Personnel Requirements
EmployeesFY 2018-19
gular Status
Actual
Buildings and Grounds Supervisor 1.0 1.0 1.0
Electrical Shop Supervisor 1.0 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 III, Mechanical 7.0 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/II 4.0 4.0 4.0
Pumping Stations Operator III 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 1.0 1.0 1.0
Utility Worker 6.0 7.0 7.0
Total 44.0 46.0 46.0
LimitedIFY 2018-19 FY 2020-
16 Duration Employees
Actual
Laborer Summer Student 10.0 5.0 10.0
Engineering Assistant Summer Student - - 1.0
Intern 1.0 1.0 3.5
Total 11.0 6.0 14.5
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
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Budget Modifications and Contributions to Key Priorities
The Plant Maintenance Operating Budget for FY 2019-20 is $15.6 million, a $518,000 or 3.4% increase
over the $15.1 million budget in FY 2019-20. Salaries & Wages include the agency-wide cost-of-living
adjustment as well as increases due to step advancements. A sizeable increase in Repairs &
Maintenance is planned for the replacement of hearths in the treatment plant furnace. Additionally,
increases in Rentals as well as Utilities & Fuel incorporate additional costs associated with preparing
and responding to additional PG&E Public Safety Power Shutoffs during FY 2020-21.
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 38.6 MGD,
2.5 MGD of which can be further treated into recycled water and reused within the treatment plant
and distributed to customers for non-potable uses.
FY 2019-20 Strategic Accomplishments
■ ' ' Provide exceptional customer service and maintain an excellent reputation in the
Etacommunity
• Provided wastewater treatment service with no interruptions during the PG&E
Public Safety Power Shutoffs and the coronavirus (COVID-19) pandemic.
UA ■ Strive to meet regulatory requirements
• Maintained eligibility for the National Association of Clean Water Agencies Peak
' Performance Award Platinum status for the 22nd consecutive year, recognizing
100% compliance with the wastewater discharge permit.
• Improved reliability of Central San's waste heat boiler (WHB) level control by
upgrading level signal and adding alarms in the Solids Conditioning Building Control
Room, to help address issues with the WHB level control which have been the root
cause of several Title V violations.
GOAL FIVE Maintain a reliable infrastructure
• Assisted Engineering in the design, coordination, and construction of the Mechanical
and Concrete Renovations; Plant Operations Building Seismic Upgrades; Influent Pump
Electrical Improvements; Piping Renovations, Phase 10; Filter Plant and Clearwell
Improvements, Phase 1A; Steam and Aeration Blower Systems Renovations; and Solids
Handling Facility Improvements Projects.
■ Embrace technology, innovation,and environmental sustainability
• Piloted and installed infrastructure for mobile supervisory control and data
acquisition (Dynac) software.
• Upgraded Filter Plant, Headworks, and Dewatering programmable logic control
programs from 1980s-era software to modern software.
• Led effort to move toward smart motor control centers and variable frequency
drives controlled over Ethernet.
• Improved reliability of the Ultraviolet Disinfection Basins by continuing to replace
obsolete control hardware and pilot test low ultraviolet transmittance.
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FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
FYs 2018-20 FY 2018-19 FY 2019-20Goal Metric Target Performance Performance FY 2020-21 Target
as of •
National Pollutant
Discharge Zero (0) Zero (0) :flr Zero(0) Zero (0) Orr
Elimination System Violations Violations ` ' Violations Violations ` '
Compliance
3 Violations 5 Violations
(Will Be (Will Be
Zero (0) Addressed Zero(0) Addressed J�r
-, Title V Compliance Violations with New Violations with New ` '
Wet Wet
Scrubber) Scrubber)
Recycled Water Title Zero (0) Zero (0) qr Zero(0) Zero(0) Orr
22 Compliance Violations Violations ` ' Violations Violations ` '
23,038 MT
Anthropogenic CO2e for
MJGreenhouse Gas <25,000 MT Calendar IgG <25,000 MT On Track to ,13rr
EmissionsCO2e 2019 ` ' CO2e Meet Goal
(Per Calendar Year) (pre-
verified)
FY 2020-21 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 eligibility for the National Association of Clean Water Agencies Peak
Strive to Achieve 100%Permit Performance Award Platinum status.
Compliance in Air,Water,Land,
and Other Regulations
F J Perform succession planning successfully and appropriately staff the division to
Ensure Adequate Staffing and meet the challenges of any upcoming departures.
Training to Meet Current and
Future Operational Levels
Continue to work with Engineering in the design,coordination,and construction of
Manage Assets Optimally projects affecting the treatment plant.
Throughout Their Lifecycle
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Budget Overview by Expense Cate or
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto BudgettoAccount Description Budget* Actual* Budget* Projected* Budget Budget Budget&Wages $4,711,774 $5,035,005 $5,414,691 $5,110,200 $4,984,842 ($429,849) -7.9%
Employee Benefits 1,799,706 1,823,907 1,914,184 2,101,515 1,572,429 (341,755) -17.9%
Unfunded Liabilities 1,447,800 1,691,323 1,650,594 1,807,885 1,613,679 (36,915) -2.2%
Purchased Property Services 287,700 256,768 297,700 261,500 320,500 22,800 7.7%
Repairs&Maintenance 4,200 - 4,200 3,000 4,000 (200) -4.8%
Hauling&Disposal 233,000 195,919 243,000 200,000 261,000 18,000 7.4%
Rentals 500 - 500 500 500 -
Cleaning 50,000 60,849 1 50,000 58,000 55,000 5,000 10.0%
Other Purchased Services 613,000 478,515 604,000 567,789 681,700 77,700 12.9%
Technical Services 15,000 - 15,000 1,200 6,000 (9,000) -60.0%
Other Services 598,000 478,515 589,000 566,589 675,700 86,700 14.7%
Supplies&Materials 4,252,100 4,466,844 4,513,100 4,552,800 4,597,300 85,200 1.9%
Utilities&Fuel 3,012,600 3,171,450 3,077,600 3,233,300 3,253,800 176,200 5.7%
Chemicals 1,125,000 1,154,947 1,320,000 1,185,000 1,202,000 (118,000) -8.9%
General Supplies 114,500 140,446 114,500 134,500 141,500 27,000 23.6%
Other Expenses 44,117 25,369 45,800 33,020 41,080 (4,720) -10.3%
Memberships 15,800 8,658 15,800 11,520 11,830 (3,970) -25.1%
Training&Meetings 24,817 16,698 26,500 20,500 27,500 1,000 3.8%
Miscellaneous Other 3,500 13 3,500 1,000 1,750 (1,750) -50.0%
Total $13,156,197 $13,777,733 $14,139,069 $14,434,709 $13,811,530 ($627,537) -4.4%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
Personnel Re uirements
IFY 2018-19
Regular Status . .yees Year-End IFY 2019-2i IFY 2020-21
Actual
Control Systems Engineer - - -
Control Systems Technician 1.0 1.0 1.0
Plant Operations Division Manager 1.0 1.0 1.0
Plant Operations Superintendent - 1.0 1.0
Plant Operations Training Coordinator 1.0 1.0 1.0
Plant Operator 1/11 4.0 4.0 4.0
Plant Operator III - 1.0 1.0
Senior Engineer 1.0 1.0 1.0
Senior Plant Operator 17.0 16.0 16.0
Shift Supervisor 7.0 7.0 7.0
Utility Systems Engineer 2.0 2.0 2.0
Total 34.0 35.0 35.0
EmployeesIFY 2018-19
Limited Duration i IFY 2020-21
Actual
Summer Engineering Assistant - 1.0 -
Total - 1.0 -
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
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Budget Modifications and Contributions to Key Priorities
The Plant Operations Budget provides Central San staff the resources necessary to continue to meet or
exceed regulatory requirements and optimize operations to work cost effectively. The Plant
Operations Operating Budget for FY 2020-21 is $13.8 million, a $0.6 million or 4% reduction over the
$14.1 million budgeted in FY 2019-20. This decrease, reflected primarily in labor-related line items, is
attributable to transferring costs associated with administrative support for the Plant Operations
Division to the Office of the Director of Operations in FY 2020-21 to better reflect the actual reporting
hierarchy of Central San's current organizational chart. As reflected in the Personnel Requirements
table, several support positions were transferred out of this divisional cost center in FY 2020-21.
Salaries & Wages include the agency-wide cost-of-living adjustment as well as increases due to step
advancements. Chemicals decreased due to the elimination of sodium hydroxide in the treatment
process in FY 2020-21. Utilities & Fuel increased due to an increase in capacity held on site due to
PG&E Public Safety Power Shutoff(PSPS) concerns.
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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 a truck fill station, 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 (the redevelopment of the
Concord Naval Weapons Station).
FY 2019-20 Strategic Accomplishments
GOAL FIVE Maintain a reliable infrastructure
• Began utilizing CityWorks to track the valve exercising program for the recycled
water distribution system control valves.
■• Embrace technology, innovation,and environmental sustainability
• Collaborated with Contra Costa Water District (CCWD) and Valley Water to complete a
Preliminary Feasibility Evaluation of the Refinery Recycled Water Exchange Project as
agreed upon in the Memorandum of Understanding.
• Collaborated with Dublin San Ramon Services District (DSRSD)—East Bay Municipal
Utility District Recycled Water Authority(DERWA)to approve a project design and
support DSRSD in bidding the project for the construction of a Temporary Wastewater
Diversion to allow DERWA to divert approximately 1.3 MGD of raw wastewater from
Central San's San Ramon Pumping Station to DSRSD for the production of recycled
water to meet DERWA's peak summer irrigation demand.
• Continued working with CCWD and the City of Concord to plan for recycled water
usage at the Concord Community Reuse Project.
• Distributed approximately 125 million gallons of recycled water to Zone 1.
• Distributed approximately 3.5 million gallons through the Commercial Truck Fill
Program.
• Distributed approximately 1 million gallons through the Residential Fill Station.
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FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
FYs 2018-20 FY 2018-19 FY 2019-20 FY 2020-21
Goal c Target Performance Performance Target
�ma-cmi6.- as of •
• Recycled Water Title 22 Zero (0) Zero (0) :A: Zero (0) s : Zero(0)
Compliance Violations Violations ' ' Violations ' ' Violations
Gallons per Year of
Recycled Water >_240 Million 195,857,981 ��� 138,971,510* ;�r ?240
Million
Distributed to External Gallons Gallons ' ' Gallons ' r Gallons
Customers
*The irrigation season typically grows in April and peaks in July,so this reported figure omits a significant amount of future
usage from Q4(April to June).
FY 2020-21 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/StrategyObjectiverk
Continue working with CCWD and Valley Water to advance the Refinery Recycled Water
Exchange Project.
Continue working with DERWA and its representatives to complete community outreach
• and inspect and accept the construction of new diversion facilities to allow the
temporary diversion of approximately 1.3 MGD of raw wastewater from Central San to
Augment the DSRSD for the production of recycled water to meet DERWA's peak summer irrigation
Region's Water demand.
Supply Continue working with CCWD and the City of Concord to plan for recycled water usage at
the Concord Community Reuse Project.
Continue to support the development of a demonstration Satellite Water Recycling
Facility at Diablo Country Club,as needed.
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Budget Overview by Expense Category
Treatment
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
Salaries&Wages $241,800 $206,445 $207,600 $242,400 $243,700 $36,100 17.4%
Employee Benefits 229,800 181,426 172,300 190,100 185,200 12,900 7.5%
Purchased Property Services
Repairs&Maintenance 4,000 - 4,000 - 4,000 -
Supplies&Materials 262,000 206,703 278,000 290,000 310,000 32,000 11.5%
General Supplies 3,000 - 3,000 - 3,000 -
Utilities&Fuel 175,000 122,497 175,000 160,000 175,000
Other Expenses 6,600 7,679 28,200 25,500 28,200
Memberships - - 21,600 18,900 21,600
Trainings&Meetings 6,600 7,679 6,600 6,600 6,600 -
Total $744,700 $612,743 $790,600 $748,000 $871,600 $81,000 10.2%
Distribution (including Residential Fill Station, Satellite Water Recycling Facilityl
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
Salaries&Wages $323,800 $232,483 $364,900 $251,700 $246,460 ($118,440) -32.5%
Employee Benefits 195,444 125,817 246,898 154,361 148,080 (98,818) 40.0%
Purchased Property Services
Repairs&Maintenance 23,000 10,944 23,000 10,000 23,000 -
Other Purchased Services 231,500 172,257 160,500 89,000 160,700 200 0.1%
Professional Services 14,000 18,911 14,000 12,000 14,000 -
Technical Services 214,000 153,346 145,000 77,000 145,000 -
Other Services 3,500 - 1,500 - 1,700 200 13.3%
Supplies&Materials
General Supplies 10,898 1 16,654 17,900 9,100 16,900 (1,000) -5.6%
Other Expenses 23,450 19,022 4,550 4,100 4,550
Memberships 18,900 17,675 - - -
Trainings&Meetings 4,050 1,347 4,050 4,100 4,050
Miscellaneous Other 500 - 500 - 500
Total $808,092 $577,175 $817,748 $518,261 $599,690 ($218,058) -26.7%
*As part of its implementation of a new enterprise resource planning system,Central San adopted a new chart of accounts to take effect
FY 2020-21 based on GFOA best practices. Prior year information presented in this table has been reclassified to reflect the new org unit
and expense account structure of the new chart of accounts for improved comparability purposes.
Total Recycled Water
FY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Budgetto
Account Description Budget* Actual* Budget* Projected* Budget Budget Budget
Total $1,552,792 $1,189,918 $1,608,348 $1,266,261 $1,471,290 ($138,058) 8.5%
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Personnel Requirements
Several divisions support the Recycled Water Program. Personnel for the Recycled Water Program are
shown in their respective divisions and total 2.4 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 two temporary staff to operate the Residential Fill Station
and one intern to support recycled water planning.
EmployeesFY 2018-19
Regular Status
Actual
Program Manager 0.5 0.5 0.5
Engineering and Technical Services 0.7 0.9 0.9
Operations Department Staff 1.2 1.3 1.0
Total 2.4 2.7 2.4
EmployeesIFY 2018-19
Limited Duration
Actual
Fill Station Temporary 8.0 3.0 2.0
Intern 1 1 1
Total 9.08.0 4.0 3.0
*The Summer Student project for the summer of 2020 is under evaluation at this time due to COVID-19 situation.
Budget Modifications and Contributions to Key Priorities
The Recycled Water Program Operating Budget for FY 2020-21 is $1.47 million, which is reduced 8.5%
compared to the $1.61 million budget in FY 2019-20. Utilities increased due to rising electrical
expenses 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.
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Financial Summary for Recycled Water Program
Budgetto
5&
w
.• Variance- AW Variance
*Treatment Plant 0&M $612,743 $790,600 $748,000 $871,600 $81,000 10.2%
Treatment Plant Capital 11576,114 3,452,000 1,790,500 9,000,000 5,548,000 160.7%
Distribution O&M 577,177 817,748 518,261 599,690 (218,058) -26.7%
Distribution Capital 32,769 700,000 114,600 100,000 (600,000) -85.7%
Total Combined $2,798,803 $5,760,348 $3,171,761 $10,571,290 $4,810,942 58.6%
Expense
U- Budgetto
MEL.Revenue Summary Actual Budget Projected Budget Variance Variance
Treatment Plant
(Wastewater Cost) $1,011,902 $1,672,841 $954,685 $4,097,705 $2,424,864 145.0%
Zone 1 Revenue 430,045 420,000 488,000 420,000 - 0%
Distribution 367,524 1,368,982 587,891 2,357,273 988,291 72.2%
(Wastewater Cost)
Residential Fill 96,943 263,119 147,488 195,168 (67,951) -25.8%
(Wastewater Cost)
Satellite 48,428 144,700 18,500 62,000 (82,700) -57.2%
Reimbursement
Recycled Water
Exchange 52,729 176,143 82,061 109,629 (66,464) -37.7%
(Wastewater Cost)
City of Concord 791,232 1,714,563 892,728 3,329,465 1,614,902 94.2%
Reimbursement
Total Combined $2,798,803 $5,760,348 $3,171,761 $10,571,465 $4,810,942 $83.5%
Revenue
Wastewater Cost $8.92 $19.90 $10.13 $37.88 $17.98 53.3%
per RUE
The above Recycled Water Revenue Summary table contains additional rows as compared to the table
presented in the FY 2019-20 budget book, representing an attempt to match all expenses to revenues
(whether true revenues, or ascribed). Recycled water rates charged to customers have not increased
with budgeted costs, but instead have been inflated by 3% annually in recent years. Accordingly, the
large increase in budgeted costs for FY 2020-21, primarily due to capital improvements, does not mean
that recycled water rates will be increased in that proportion.
Regarding the FY 2020-21 Budget Revenue figures noted above, the $420,000 Zone 1 Revenue is
entirely allocated to O&M (see Table 5 in Financial Summary). The $3,329,465 City of Concord
Reimbursement is contained within the $15,760,000 for O&M (see Table 5 in Financial Summary) and
$15,300,000 for Capital (see Table 11 in Financial Summary). The $62,000 Satellite Reimbursement is
contained within the $347,000 Other Revenues (see Table 5 in Financial Summary). The remaining
costs are Wastewater Costs and included in the Sewer Service Charge.
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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 ensure
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 2020-21
SIF Budget. The SIF revenue for FY 2020-21 is projected to be $582,050, and expenses are projected to
be $1,153,500, resulting in closing net SIF reserves of$6,501,216. The budgeted revenues include the
allocation of$450,000 from the FY 2020-21 Operations and Maintenance (0&M) Fund to the SIF, which
is reduced from prior years given the projected overfunded position of the self-insurance fund above
the required level of$6.5 million for FY 2019-20.
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 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 losses 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. Thus, 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 2020-21 of$24,900 with expenses of$415,000, for a decrease
of$390,100. 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 2020-21 of$557,150, which includes a transfer from the O&M
Fund of$450,000. The budgeted ending balance for FY 2019-20 is slightly above the policy required
level of$5 million.
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Table 1 - SIF Summary Overview
Revenues
SIF Allocation from O&M Fund $779,500 $825,000 $825,000 $450,000
Insurance Allocation from Household Hazardous Waste 19,511 21,000 20,000 20,000
Subrogation Recovery 66,452 - 20,000 -
Interest Income 170,867 179,900 148,400 112,750
Total Revenue $1,036,329 $1,025,900 $1,013,400 $582,050
Expenses
Claims Adjusting $- $2,000 $- $2,000
Insurance Consulting 5,000 - - 6,500
Loss Payments 368,891 275,000 165,000 275,000
Losses:Audit Adjustment for GASB-10 - - - -
Legal Services 141,706 80,000 150,000 80,000
Technical Services 28,399 85,000 45,000 90,000
Insurance Premiums 581,408 631,700 637,000 700,000
Total Expenses $1,125,404 $1,073,700 $997,000 $1,153,500
Revenue Over Expense ($89,075) ($47,800) ($16,400) ($571,450)
Projected Reserves*
Beginning of Year $7,145,340 $7,245,540 $6,056,265 $7,072,665
Reserve Policy Transfer - - -
Revenue over Expense (89,075) (47,800) 16,400 (571,450)
End of Year Projected Reserves $7,056,265 $7,197,740 $7,072,666 $6,501,216
Allocated Reserves
Actuarial Reserves-GASB-10(Fund A) $1,500,000 $1,500,000 $1,500,000 $1,500,000
Non-Actuarial Reserves-GAS13-10(Fund C) 5,556,265 5,697,741 5,572,665 5,001,215
Total Allocated Reserves $7,056,266 $7,197,741 $7,072,666 $6,501,216
*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 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21
Actual Budget Projected Budget
Projected Reserves-Beginning of Year $1,500,000 $1,500,000 $1,500,000 $1,500,000
Revenues
O&M $- $- $- $_
Subrogation Recovery 5,015 - - -
Interest 38,137 41,500 31,000 24,900
Total Revenue $43,151 $41,500 $31,000 $24,900
Expenses
Losses $348,394 $250,000 $150,000 $250,000
Losses:Audit Adjustment for GASB-10 - - -
Legal Services 141,706 75,000 150,000 80,000
Technical 28,399 75,000 45,000 85,000
Total Expenses $518,499 $400,000 $345,000 $415,000
Revenue Over Expense ($475,348) ($358,500) ($314,000) ($390,100)
Projected Reserves*
Transfer(to)/from Sub-Fund C $475,348 $358,500 $314,000 $390,100
Reserve Increase Transfer from Fund C - - - -
Total Reserves Projected End of Year $1,500,000 $1,500,000 $1,500,000 $1,500,000
* Projected reserves may differ from actual reserves due to entries related to the accrual method of accounting
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Table 3 - SIF - Sub-Fund C _
Beginning Reserves $5,645,340 $5,745,541 $5,556,265 $5,572,665
Revenues
0&M $779,500 $825,000 $825,000 $450,000
Subrogation Recovery 61,437 - 20,000 -
Insurance Recovery from Household Hazardous Waste 19,511 21,000 20,000 20,000
Partners
Interest 132,730 138,400 88,050 87,250
Total Revenue $993,178 $984,400 $982,400 $557,150
Expenses
Losses $20,497 $25,000 $15,000 $25,000
Legal - 5,000 - -
Technical - 10,000 - 5,000
Insurance Premiums 581,408 631,700 637,000 700,000
Insurance Consulting Services 5,000 - - 6,500
Claims Adjustment - 2,000 - 2,000
Total Expenses $606,905 $673,700 $652,000 $738,500
Revenue Over(Under)Expense $386,273 $310,700 $330,400 ($181,350)
Projected Reserves
Transfer(to)/from Sub-Fund A ($475,348) ($358,500) ($314,000) ($390,100)
Transfer(to)/from Sub-Fund B - - - -
Reserve Increase to Sub-Fund A
(Audit Adjustment for GASB-10)
Reserve Policy Transfers - - - -
Total Reserves Projected End of Year $5,556,265 $5,697,741 $5,572,665 $5,001,215
* 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 . Swu
. ■
MI
$0
FY 2018-19 Actual FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Budget
■Total Revenue ATotal Expenses ■Tota l Reserves Projected End of Year
Figure 2 - History of Loss Payment and Insurance Premiums
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
FY 2018-19 Actual FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Budget
A Loss Payments ■Insurance Premiums
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Figure 3 - Reserves by Sub-Fund
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FY 2018-19 Actual FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Budget
■Allocated Reserves-GASB 10(Fund A) ■Allocated Reserves-GASB 10(Fund C)
Figure 4 - History of Reserves
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FY 2018-19 Actual FY 2019-20 Budget FY 2019-20 Projected FY 2020-21 Budget
■Allocated Reserves-GASB 10(Fund A) ■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, usually based on operational or maintenance needs or condition assessments, 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 new or contingency projects and are included in the CIB as needed.
The CIB provides a detailed presentation of the estimated budget needed 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 includes
comprehensive condition assessments. The 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
second, 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 and updates the Board
Engineering and Operations Committee on the status of the CIP.
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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 the Clean Water State Revolving Fund Program which offers low cost
financing for a wide variety of water quality projects to spread the payment over time. This is
anticipated for FY 2020-21.
Capital Improvement Budget Project Prioritization
The projects included in the FY 2020-21 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. Criteria fell into three categories: 1) Essential Commitments;
2) Project Benefits; and 3) Operational Reliability, as summarized below:
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
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 . 1
Reduces Environmental Impacts
Supports Timely Adoption of Technology ImprovementsCriteria Category: i
1
Operational Reliability
Consistent with Asset Management Program
Improves Reliability and System Performance
Improves Facility-Wide Resiliency
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Individual Project Drivers
Projects included in the CIP address one or more of the four major drivers for implementing capital
improvement projects: 1) Aging Infrastructure; 2) Regulatory; 3) Capacity; and 4) Sustainability. Most
project scopes include several project elements that address a range of drivers. Below is a description
for each of the four major drivers:
• Aging Infrastructure:This project driver describes projects required to maintain the performance
and reliability of existing assets to ensure reliable conveyance and treatment of wastewater.
Central San operates and maintains several billion dollars of assets, and several projects in each
program have been initiated or are in progress to meet replacement or rehabilitation infrastructure
needs. Most of the existing treatment plant facilities were constructed in the late 1970s and early
1980s following the passage of the Clean Water Act, and some of the collection system facilities
and piping were constructed as early as the 1940s and 1950s. Central San recognizes the need to
address aging infrastructure and has developed an Asset Management system.
• Regulatory:This project driver describes projects required to reliably comply with regulatory
requirements that are designed to protect human health and the environment, and includes
planning needed to anticipate potential future regulatory requirements. Regulatory drivers that
may trigger capital improvement projects include potential changes in future state and/or federal
water, air, and solids regulations. Potential regulatory drivers include: changes to existing final
effluent limits to address nutrients, selenium, contaminants of emerging concern, and others;
changes to California/National Toxics Rules, 303 (d) listed pollutants and micropollutants, and new
virus-based disinfection criterion; reductions in greenhouse gas emission Cap and Trade Program
thresholds; compliance with Federal 129 sewage sludge incineration rules, changes to air emission
limits, and solids handling/management and disposal regulations; recycled water, including
potential coordinated projects with water agencies on Title 22, indirect or direct potable reuse
opportunities; and collection system regulatory requirements such as the reduction of sewer
system overflows. Occasionally, improvements are also required to improve the reliability of
existing facilities to ensure 100% compliance with regulatory permits and to ensure protection of
human health and the environment.
• Capacity:This project driver describes projects required to increase capacity of existing facilities.
Capacity drivers that may trigger capital improvement projects include potential upgrades required
to mitigate hydraulic bottlenecks and increase capacity of existing facilities to accommodate
wastewater flows and loads. Projects that would be required to accommodate planned growth are
not included in the CIP.
• Sustainability/Energy/Optimization:This project driver describes projects to minimize lifecycle
costs, maximize benefits, and achieve economic stability through optimization, resiliency, resource
recovery, and energy projects. Sustainability drivers that may trigger capital improvement projects
include upgrades to strive towards net zero energy, recycled water projects to ensure the reliable
supply of recycled water for use at Central San and for use by Central San's customers, and
upgrades to improve the resiliency of Central San facilities. Improvements to strive towards net
zero energy or energy self-sufficiency include energy efficiency measures such as installing more
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energy efficient equipment or treatment processes, and renewable energy projects such as solar or
wind.
Example of Project Driver(s)
Project Drivers Each project is described on the following pages. Each
project summary includes project name, description,
prioritization, purpose, operating department impact
Aging Infrastructure Capacity 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.
Capital Improvement Budget FY 2019-20 Accomplishments
Collection System Sewer Replacement: Several projects have replaced or rehabilitated up to 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 rights-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 up to 7.0 miles of upcoming
sewer replacement this fiscal year and coordinated the projects with city paving programs and other
utilities throughout the service area.
eke �
- = Ing44
_
Now,
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 in 2020.
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I I
If
3—D Construction Modeling of the Solids Handling Facility Improvements Project
Safety projects included the completion of the Plant Operations Building Seismic Upgrades
construction, and the design and bidding of the Emergency External Stairway for the Solids
Conditioning Building. 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 rehabilitated the odor control towers and associated electrical for
two critical process areas (Headworks and Primary Sedimentation).
• Pumping Station Upgrades—Phase 1: Awarded the construction contract and started construction
for needed replacement of electrical, mechanical, and back-up power equipment at the Moraga,
Orinda Crossroads, and Flush Kleen Pumping Stations.
• Pumping Station Upgrades—Phase 2: Land acquisitions and detailed design is ongoing for needed
electrical and mechanical equipment replacement at the Martinez, Maltby, and Fairview Pumping
Stations and progress into the next fiscal year.
• Filter Plant and Clearwell Improvements— Phase 1A: Completed final design, which includes
replacement of deteriorated electrical infrastructure at the Clearwell, new pumps, recycled water
storage improvements, and filter system modifications. Construction is expected to begin in FY 2020-21.
• 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
treatment plant electrical systems. The planning of this project will continue into next year.
• Projects completed: Several projects are either at the Substantial Completion or Closed phase of
construction, including the Headworks Screenings Upgrade (Closed), Piping Renovation— Phase 9
(Closed), and Recycled Water Clearwell Repairs (Closing in Progress). All of these projects 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.
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A
A
Rehabilitating the odor control tower and temporary bypassing under the Mechanical and Concrete Renovations Project
FY 2020-21 Capital Improvement Budget
The CIB Budget to date is approximately$104.77 million. The budget needed for all ongoing and new
projects in FY 2020-21 is $88.02 million. The future year estimated budget for these projects is at
$380.16 million. Combined the total estimated budget for the identified projects in the FY 2020-21 CIB
is $572.96 million. The 2020 Ten-Year CIP is projected to be $907.55 million as shown below in Table 1:
Table 1 - FY-2020-21 CIB per Program
r Budget
. .2020-21 Future FYs Total Estimated FY 2020
13) Project Budgets Ten Year CIP
Collection System $25,258,527 $40,165,000 $86,066,000 $151,489,527 $335,522,000
Treatment Plant 56,120,451 32,334,000 219,225,000 307,679,451 457,156,000
General Improvements 14,004,283 3,925,000 7,665,000 25,594,283 22,470,000
Recycled Water 9,391,894 9,500,000 57,200,000 76,091,894 67,800,000
CIB Contingency - 2,100,000 10,000,000 12,100,000 24,600,000
Totals: $104,775,155 $88,024,000 $380,156,000 $572,955,155 $907,548,000
The Budget to Date(1)above includes approximately 90%budget already spent for on-going projects.
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FY 2019-20 Capital Improvement Budget Construction Commitments
As of April 30, 2020, the total construction commitments authorized by the Board in FY 2019-20 or
prior is $60.3 million and a total of$46.8 million in future years. This includes all construction
contracts, purchase orders, construction management, and supporting services to complete the
construction phase within the CIB.
Sewer Construction Budget,
$120 Commitments and Capacity $120
$100 j $100
1 1 1
1
1 1 143.41
$80 1
i i 144.31 1i
1
$801
$60 $60
32.0
$40 153.46: $40129 ,
166.11
$20 t $20
19/20 20/21 21/22 22/23
Fiscal Year
OApproved and Projected Budget per FY
Committed already(contracted)
1===1 Remaining capacity with existing rates
Additional capacity with planned increases
-SSC funding capacity from Existing Rates*
* Future years amounts may differ to the extent of reserve drawdowns.Additional analysis required.
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FY 2020-21 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 2020-21, the emphasis will be on
fifteen large projects (those projects over $1.5 million), which together account for$67.4 million or
77% of the total CIB for the year. Each major project budget is shown below:
1. Solids Handling Facility . .
FY-2020-21 Budget: $4,000,000 Estimated total project cost: $128,234,000
Estimated completion date: FY 2025-26
k. Mechanical and Concrete Renovations —=11
FY-2020-21 Budget: $2,603,000 Estimated total project cost: $14,047,000
Estimated completion date: FY 2020-21
3. Pumping Station Upgrades—Phase I
FY-2020-21 Budget: $14,040,000 Estimated total project cost: $35,031,000
Estimated completion date: FY 2022-23
Estimated total project cost: $5,200,000
FY-2020-21 Budget: $4,600,000
Estimated completion date: January 2020
0-21 Budget: $4,573,000 Estimated total project cost: $5,173,000
FY-202
Estimated completion date: January 2020
Y-2020-21 Budget: $4,500,000 Estimated total project cost: $5,100,000
F
Estimated completion date: January 2020
FY-2020-21 Budget: $4,207,000 Estimated total project cost: $25,498,527
Estimated completion date: FY 2021-22
. .
FY-2020-21 Budget: $9,000,000 Estimated total project cost: $38,589,000
Estimated completion date: FY 2022-23
FY-2020-21 Budget: $2,550,000 Estimated total project cost: $63,050,000
Estimated completion date: FY 2025-26
1111!1111111111111111ilillilljlll��illillI IIIIIIIII NO !111 1111 1111111111111111111
FY-2020-21 Budget: $3,500,000 Estimated total project cost: $8,910,000
Estimated completion date: FY 2022-23
.• ..
Estimated total project cost: $30,550,000
FY-2020-21 Budget: $2,400,000
Estimated completion date: FY 2024-25
ProgramLarge Diameter Renovation
Estimated total project cost: $17,000,000
FY-2020-21 Budget: $1,500,000
Estimated completion date: FY 2028-29
FY-2020-21 Budget: $2,550,000 Estimated total project cost: $2,550,000
Estimated completion date: FY 2020-21
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•
Estimated total project cost: $6,200,000
;FY-2020-21
20-21 Budget: $5,100,000
Estimated completion date: FY 2021-22
.
Estimated total project cost: $3,765,000
Budget: $2,500,000
Estimated completion date: FY 2021-22
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 Collection System Sewer Renovation — Phase 1 has been or will be split to fund the
construction of the Walnut Creek Sewer Renovation — Phase 14, Lafayette Sewer Renovation —
Phase 14, South Orinda Sewer Renovation — Phase 8, and Martinez Sewer Renovation — Phase
6 as planned and within budget.
• The Filter Plant and Clearwell Improvements will be completed in two phases; Phase 1A is in
progress while Phase 1B will start predesign this fiscal year.
Modification of Scope and Budget:
• The Pumping Station Upgrades— Phase 1 and Outfall Improvements— Phase 7 budgets were
increased at time of the award. The budgets for these projects and the program have been
updated to reflect the changes presented to the Board.
Renaming Projects:
• None.
1`., 1111 1111 11
16
1
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l A.
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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.
h
7�Y
r
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CEQA Compliance Summary for FY 2020-21
COLLECTION SYSTEM PROGRAM
5991 Pleasant Hill Sewer Renovation—Phase 2 X
8419 Collection System Planning X
8436 Pumping Station Upgrades—Phase 1 X
8442 Pumping Station Equipment and Piping X
Replacement—Phase 2
8443 Large Diameter Pipeline Inspection Program— X
Phase 1
8444 Force Main Inspection Program—Phase 1 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
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.
8458 Martinez Sewer Renovation—Phase 6 X
8459 Lafayette Sewer Renovation—Phase 14 X
8460 Walnut Creek Sewer Renovation—Phase 14 X
8461 South Orinda Sewer Renovation—Phase 8 X
8462 San Ramon Pumping Station DERWA X
TBD Cured-In-Place Pipe Blanket Contract FY 2020-25 X
TBD Contractual Assessment District Project X
Financing
TBD Large Diameter Piping Renovation Program X
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Program/Project • Document Required
TREATMENT PLANT PROGRAM
7304 Programmable Logic Controller Systems X
Upgrades
7315 Applied Research and Innovations X
7317 Plant Control System Network Upgrades X
7322 Fire Protection System—Phase 2 X
7328 Influent Pump Electrical Improvements X
7339 Plant Control System 1/0 Replacement X
Contra Costa County Flood Control and Water
7341 Walnut Creek/Grayson Creek Levee Rehab Conservation District will be the Lead Agency
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
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.
7373 Fire Protection System—Phase 3 X
TBD Laboratory Roof and Seismic Upgrades X
TBD Hearth Replacement X
TBD Air Conditioning and Lighting Renovation X
TBD Plant Electrical Replacement and Rehabilitation X
TBD Contractor Staging Improvements X
TBD UPCCAA Urgent Projects FY 2020-25 X
TBD UV Disinfection Replacement X
TBD UV Hydraulic Improvements X
TBD MRC Building Modifications X
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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
8250 ERP Replacement X
Capital Improvement Program and Budget Planning is exempt; more information is
8251 Improvements X needed on future aspects of this project to
determine appropriate CEQA documentation.
8516 Equipment Acquisition X
8517 Vehicle Replacement Program X
TBD Property Repairs and Improvements X
TBD HOB Exterior Repairs X
RECYCLED WATER PROGRAM
7306 Zone 1 Recycled Water X
7346 Recycled Water Distribution System Surge X
Analysis
7361 Filter Plant and Clearwell Improvements—Phase X
1A
7365 Recycled Water Clearwell Repairs X
7366 Recycled Water Distribution System Renovations X
Program
Planning is exempt; more information is
7368 Water Exchange Project X needed on future aspects of this project to
determine appropriate CEQA documentation.
TBD Filter Plant and Clearwell Improvements—Phase X
113
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Capital Improvement Budget - Collection System Program
The following are the major points of emphasis for the FY 2020-21 Collection System Program:
• Renovate sewers as they reach the end of their useful lives to avoid structural failure, sanitary
sewer overflows, sewer service disruptions, and to control maintenance costs;
• Improve the electrical safety, reliability, and operations of the pumping stations;
• Promote residential septic conversion by providing finance options to protect public health and the
environment; and
• Investigate and plan for potential large diameter sewer renovation.
The process for project identification, prioritization, and scheduling takes into consideration the
following eight major components:
• Reduce impacts to customers/residents and 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 closed-circuit TV Inspection Program that identifies 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 other agencies'/utilities' projects.
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 scope, schedule, and cost improves.
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The Collection System Program is comprised of the following projects and planned expenditures:
CIB Table 2 - FY 2020-21 Collection System Pro ram Budget/Project Summary
Project
• .
Number oil
W,
5991 Pleasant Hill Sewer Renovation- $460,000 $500,000 $1,500,000 $2,460,000
[Phase 2
7367 Concord Main Metering Station 250,000 - - 250,000
Upgrade
8419 Collection System Planning 1,185,000 200,000 400,000 1,785,000
8436 Pumping Station Upgrades-Phase 1 8,347,000 14,040,000 12,644,000 35,031,000
8442 Pumping Station Equipment and Piping 600,000 200,000 400,000 1,200,000
Replacement-Phase 2
8443 Large Diameter Pipeline Inspection 765,000 530,000 546,000 1,841,000
Program-Phase 1
8444 Force Main Inspection Program- 125,000 500,000 700,000 1,325,000
Phase 1
8447 Pumping Station Security 207,000 75,000 300,000 582,000
Improvements
8448 Manhole Modifications 1,021,000 400,000 700,000 2,121,000
8449 Collection System Modeling Support 303,000 120,000 120,000 543,000
8450 Development Sewerage Support 2,030,000 900,000 5,400,000 8,330,000
8451 Collection System Sewer Renovation- 2,535,527 4,207,000 18,756,000 25,498,527
Phase 1
8456 Danville Sewer Renovation-Phase 3 4,280,000 - - 4,280,000
8457 Pumping Stations Upgrades-Phase 2 550,000 2,400,000 27,600,000 30,550,000
8458 Martinez Sewer Renovation-Phase 6 600,000 4,500,000 - 5,100,000
8459 Lafayette Sewer Renovation- 600,000 4,600,000 - 5,200,000
Phase 14
8460 Walnut Creek Sewer Renovation- 600,000 4,573,000 - 5,173,000
Phase 14
8461 South Orinda Sewer Renovation- 600,000 600,000
Phase 8
8462 San Ramon Pumping Station DERWA 200,000 - - 200,000
TBD* Cured-In-Place Pipe Blanket Contract - 600,000 1,000,000 1,600,000
FY 2020-25
Contractual Assessment District
TBD* - 500,000 500,000 1,000,000
Project Financing
TBD* Large Diameter Piping Renovation _ 1,500,000 15,500,000 17,000,000
Program
Total Program $25,258,527 $40,345,000 $86,066,000 $151,669,527
*New Projects in FY 2020-21
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Pleasant Hill Sewer Renovation— Phase 2 — District Project 5991
Program Phase Priority Rank Ranking Score
Collection System Design/Construction Critical 65
Purpose: I Project Drivers
To replace and renovate small diameter sewers within the
city of Pleasant Hill. Aging Capacity
Infrastructure P y
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.
r •
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 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, minimize the number of overflows, limit the quantity of rainfall
entering the collection system, and improve the level of service provided to customers.
Description:
The Pleasant Hill Sewer Renovation Project- Phase 2 will replace or rehabilitate small diameter sewers
located in both public rights-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 Project- Phase 1.
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 2020-21 FY 2021-22 Future FYs Total
Planning $183,000 $- $- $- $183,000
Design 277,000 250,000 - - 527,000
Construction - 250,000 1,000,000 500,000 1,750,000
FY Total $460,000 $500,000 $1,000,000 $500,000 $2,460,000
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Concord Main Metering Station U129rade— District Project 7367
Program Phase Priority Rank Ranking Score
Collection System Construction Critical 75
Purpose:
To improve reliability and accuracy of the Concord Main Metering
Station to provide more accurate operations and maintenance Aging Capacity
costs and billing for the facility.
structure
Infra P y
Drivers: Regulatory Sustainability
This flow meter measures 80% of the City of Concord flows to
Central San and is used for billing. During a study of the
existing venturi meter, it was determined that a new magnetic
flow meter would capture more accurate flow data and
require less maintenance. In addition, upgrades to the facility
and electrical will be implemented. An intrusion alarm and
monitoring system will be installed for the protection and -
safety of the facility. Relocation of the sump pump piping will -
allow for better access and reliability of the station. A new
electrical connection specifically for the meter station is being
installed to provide more accurate electrical billing for the q
station.
I
Description:
i 1 viii
The Concord Main Metering Station Project is installing a new magnetic flow meter, relocate the sump
pump piping, install new stairs, install an intrusion alarm system, and install a new connection directly
to the metering station and its associated electrical equipment and panels. This project was bid as part
of the Concrete and Mechanical Renovations Project, and should be completed this fiscal year FY 2020-
21.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues. The costs associated with the project are shared with the City of Concord.
Location(s): City of Concord
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - -
Construction 250,000 - - 250,000
FY Total $250,000 $- $- $- $250,000
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Collection System Planning— District Project 8419
Program Phase Priority Rank Ranking Score
Collection System Planning Critical 70
Purpose: I Project Drivers
To complete evaluations for upcoming regulatory requirements,
assess collection system renovation needs, evaluate sewer Aging Capacity
capacities, and investigate optimization and pilot opportunities. Infrastructure
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
InfoMaster°sewer replacement risk model is maintained by staff
to identify and prioritize sewer renovation needs. An InfoWorks°
hydrodynamic model is maintained by staff to identify capacity
deficiencies and renovation needs. This project 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 the 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
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $1,185,000 $200,000 $200,000 $200,000 $1,785,000
Design - - - - -
Construction - - - - -
FY Total $1,185,000 $200,000 $200,000 $200,000 $1,785,000
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Pumping Station Upgrades — Phase 1 — District Project 8436
Program Phase Priority Rank Ranking Score
Collection System Construction 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 P y
Drivers:
As part of the Comprehensive Wastewater Master Plan, a detailed Regulatory Sustainability
condition assessment of the pumping stations has identified
several structural, mechanical, electrical, and instrumentation
improvements. An Arc Flash Study has also identified several
improvements that are required at these pumping stations.
Description: "Wi
The following are major elements included in the project w.. f
which is currently in construction:
• Add grinder(s) at the Moraga Pumping Station
• Construct a surge tank canopy at the Orinda Crossroads
Pumping Station --
• Replace wet weather diesel engine driven pumps at the
Moraga and Orinda Crossroads Pumping Stations with electric motors
• New backup generators and automatic transfer switch improvements at all three sites
• 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
BudgetProject
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $450,000 $- $- $- $450,000
Design 3,200,000 - - - 3,200,000
Construction 4,697,000 14,040,000 12,644,000 - 31,381,000
FY Total $8,347,000 $14,040,000 $12,644,000 $- $35,031,000
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Pumping Station E ui ment and Pi in Re 1acement— Phase 2 — District Project 8442
Program Phase Priority Rank Ranking Score
Collection System Construction Critical 75
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 r�
operations during emergency conditions, power failures, and
I
severe wet weather conditions.
7 !i
Selection of equipment is completed by Plant Operations, Plant
Maintenance, and Engineering staff in coordination with the
ongoing Asset Management Program.
Description:
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
• Replace critical equipment at the Lower Orinda Pumping Stations, including variable frequency
drives
• 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
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $-
Design 50,000 - - - 50,000
Construction 550,000 200,000 200,000 200,000 1,150,000
FY Total $600,000 $200,000 $200,000 $200,000 $1,200,000
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Large Diameter Pipeline Inspection Program— District Project 8443
Program Phase Priority Rank Ranking Score
Collection System Planning Critical 80
Purpose:
To assess the condition of large diameter trunks and interceptors Project Drivers
and confirm the timing for renovation needs. Aging
Infrastructure Capacity
Drivers:
Central San owns 76 miles of wastewater trunks and interceptors Regulatory sustainability
ranging from 24 inches to 102 inches in diameter. The typical
lifespan of large 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 ,r
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 to perform
the following:
• Review pipeline data and prioritize large diameter sewers for inspection— initial assessment will be
approximately 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 2020-21 FY 2021-22 Future FYs Total
Planning $765,000 $530,000 $546,000 $- $1,841,000
Design - - - -
Construction - - - -
FY Total $765,000 $530,000 $546,000 $- $1,841,000
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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
Infrastructure Capacity
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 )FU
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 r
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 CCTV inspection, pressure transient monitoring, -_f-
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 Project— 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 2020-21 FY 2021-22 Future FYs Total
Planning $125,000 $500,000 $700,000 $- $1,325,000
Design - - - -
Construction - - - -
FY Total $125,000 $500,000 $700,000 $- $1,325,000
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Pumping Station Security Improvements — District Pro'ect 8447
Program Phase Priority Rank Ranking Score
Collection System Design/Construction Critical 65
Purpose:
To improve physical security at the pumping stations and to Project
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).
RAMCAPI 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: 1) Asset Characterization' 2) Threat
Characterization' 3) Consequence Analysis'4) Vulnerability
Analysis' S) 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 Kleen, and Martinez projects
Location(s): Pumping Stations
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $- $0 $- $- $-
Design 131,000 - - - 131,000
Construction 76,000 75,000 75,000 225,000 451,000
FY Total $207,000 $75,000 $75,000 $225,000 $582,000
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Manhole Modifications - District Project 8448
Program Phase Priority Rank Ranking Score
Collection System Construction Critical 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 other agencies - ,
under joint powers agreements.
Operating Department Impact and Funding Source:
This project does not have an impact on the operating budgets. However, if Collection System
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 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - - -
Construction 1,021,000 400,000 350,000 350,000 2,121,000
FY Total $1,021,000 $400,000 $350,000 $350,000 $2,121,000
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Collection System Modeling Support— District Project 8449
Program Phase Priority Rank Ranking Score
Collection System Planning Critical 65
Purpose:
To maintain and update the InfoWorks° hydrodynamic collectionProject
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 the Geographic 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 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - -
Construction 303,000 120,000 120,000 - 543,000
FY Total $303,000 $120,000 $120,000 $- $543,000
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Development Sewera a Support- District Project 8450
L a= —= Priority 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 p Y
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
Construction. These activities are capitalized under this and Constru lon
project. Ili
MA
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. _
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
Projec
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning
Design - - - - -
Construction 2,030,000 900,000 900,000 4,500,000 8,330,000
FY Total $2,030,000 $900,000 $900,000 $4,500,000 $8,330,000
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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 Capacity
Infrastructure
Drivers:
Nearly all of 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 InfoMaster®sewer replacement risk model was W.ow.�o
developed to prioritize the timing for sewer replacement and to 50.0x.ow
develop a risk-based sewer replacement program. The Collection �.�.
System Sewer Renovation Project- Phase 1 will span the next five 3
fiscal years (FYs 2018-23). Central San was planning to replace up
to 7.6 miles per year with increasing in years 10 through 20 in the
Capital Improvement Program. Phase 1's current approach is to
replace approximately 6-7 miles per year.
•ti ry Forccau few.ry ••r,ry ry
Description:
This project is for sewer selection planning and design work for new sewer replacement projects
totaling up to 14 miles of replacement. These designs will be bid and split into individual projects for
construction and will span two fiscal years. These projects include:
• Lafayette Sewer Renovation - Phase 14
• South Orinda Sewer Renovation- Phase 8
• City of Orinda, Walnut Creek, and other IocationsMiscellaneous 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 2020-21 FY 2021-22 Future FYs Total
Planning $- $400,000 $400,000 $- $800,000
Design - 2,000,000 2,000,000 - 4,000,000
Construction 2,535,527 1,807,000 16,356,000 - 20,698,527
FY Total $2,535,527 $4,207,000 $18,756,000 $0- $25,498,527
188
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Danville Sewer Renovation — Phase 3 — District Project 8456
Program Phase Priority Rank Ranking Score
Collection System Construction Critical 65
Purpose:
To replace and renovate small diameter sewers within the Project
Las Lomitas neighborhood in the town of Danville. 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
rate of infiltration, and/or threat of structural collapse. a4{
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 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 Danville Sewer Renovation Project- Phase 3 is replacing or rehabilitate approximately 5,000 feet
of small diameter sewers and install approximately 40 new private side sewers located in both public
right-of-way and easements within the Las Lomitas neighborhood in the town of Danville in lieu of
renovation in backyard easements. Several sewers will be abandoned and easements quitclaimed.
Operating Department Impact and Funding Source:
This project approach is a cost savings to Central San's capital program and to the operating budgets.
Project expenditures are funded from Capital Revenues.
Location(s):Town of Danville
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 400,000 - - 400,000
Construction - 3,780,000 - - 3,780,000
FY Total $500,000 $3,780,000 $- $- $4,280,000
189
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Pumping Stations Upgrades — Phase 2 — District Project 8457
Program Phase Priority Rank: Ranking Score
Collection System Planning/Design Critical 65
Purpose: I Project Drivers
To address aging infrastructure and reliability needs at the
Martinez, Fairview, and Maltby Pumping Stations. Aging Capacity
Infrastructure P y
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
identified several improvements required at these pumping
stations.
r
Description:
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 brace 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
BudgetProject
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $150,000 $- $- $- $150,000
Design 400,000 2,400,000 100,000 - 2,900,000
Construction - - 2,000,000 25,500,000 27,500,000
FY Total $550,000 $2,400,000 $2,100,000 $25,500,000 $30,550,000
190
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Martinez Sewer Renovation— Phase 6 — District Project 8458
Program Priority Rank Phase Ranking Score E
Collection System Critical Construction 65
Purpose:
To replace and renovate small diameter sewers within the city and roject Drivers
unincorporated areas of Martinez. 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 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 Martinez Sewer Renovation Project- Phase 6 will replace or rehabilitate up to approximately
9,000 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): Martinez
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - - - 500,000
Construction - 4,500,000 - - 4,500,000
FY Total $600,000 $4,500,000 $- $- $5,100,000
191
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Lafayette Sewer Renovation— Phase 14 — District Project 8459
Program Priority Rank Phase Ranking Score E
Collection System Critical Construction 65
Purpose:
To replace and renovate small diameter sewers within the city and roject Drivers
unicorporated areas of Lafayette. Aging Capacity
Infrastructure P y
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 fly r
not currently perform well, and 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 Project— Phase 14 will replace or rehabilitate up to approximately
10,000 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): Lafayette
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - - - 500,000
Construction - 4,600,000 - - 4,600,000
FY Total $600,000 $4,600,000 $- $- $5,200,000
192
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Walnut Creek Sewer Renovation — Phase 14— District Project 8460
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 Capacity
Infrastructure P y
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 are the source of over 90% of f--
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 Walnut Creek Sewer Renovation Project- Phase 14 will replace or rehabilitate up to approximately
10,000 feet of small diameter sewers located in both public right-of-way and easements. This project
includes a creek crossing.
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):Walnut Creek
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - - 500,000
Construction - 4,573,000 - - 4,573,000
FY Total $600,000 $4,573,000 $- $- $5,173,000
193
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South Orinda Sewer Renovation — Phase 8 — District Project 8461
Program Phase Priority Rank Ranking Score
Collection System Construction Critical 65
Purpose: Project Drivers
To replace and renovate small diameter sewers within the
southern portion of the City of Orinda, unincorporated Orinda, and Aging Capacity
Infrastructure
the Town of Moraga.
Drivers: Regulatory Sustainability
Central San's 1,500+ mile collection system has pipe segments
that range in age from new to more than 100 years old. Some
of the pipe segments are at or near the end of their useful 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 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. The construction of this project will be funded by the Collection System Sewer Renovation
Project— Phase 1.
Description:
The South Orinda Sewer Renovation Project— Phase 8 will replace or rehabilitate up to approximately
5,100 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):Orinda and Moraga
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - - 500,000
Construction - - - - -
FY Total $600,000 $- $- $- $600,000
194
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San Ramon Pum )ing Station — District Project 8462
Program Phase Priority Rank Ranking Score
Collection System Construction Critical 75
Purpose: I Project Drivers
Install a Variable Frequency Drive (VFD) and rebuild the 100-hp
pump at the San Ramon Pumping Station. Aging Capacity
Infrastructure P Y
Drivers:
The Dublin San Ramon Services District and East Bay Municipal Regulatory sustainability
Utility District Recycled Water Authority and Dublin San Ramon
Services District Flow Diversion Project, under a
memorandum of understanding and agreement, have
requested diversion of wastewater upstream of the _ L
San Ramon Pumping Station to the Dublin San Ramon
Services District sewer collection system during the
summer months. The small (100-hp) pump must be
r-
rebuilt to operate more reliably at a smaller flow J
regime, during times when the diversion is in effect.
Description:
This project includes bidding and executing a Uniform
Public Construction Cost Accounting Act contract to remove the existing 250-hp VFD, install a 100-hp
VFD, and rebuild the 100-hp pump and motor.
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): San Ramon
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - - -
Construction - - - - -
FY Total $200,000 $- $- $- $200,000
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Cured-In-Place Pipe Contract 2020-2025 — District Project TBD
Program Phase Priority Rank Ranking Score
Collection System Design/Construction Critical 75
Purpose: I Project Drivers
Use cured-in-place pipe (CIPP) technology to repair any urgent
pipelines which require immediate action. Aging Capacity
Infrastructure p y
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 : Mr
that will allow Central San to use a contractor to perform urgent F 40
CIPP work. # IF '
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 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $-
Design - 150,000 - - 150,000
Construction - 450,000 250,000 750,000 1,450,000
FY Total $- $600,000 $250,000 $750,000 $1,600,000
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Contractual Assessment District Project Financing— District Project TBD
Program Phase Priority Rank Ranking Score
Collection System Construction Board Authorized N/A
Purpose:
To provide a financing mechanism for the extension of public Project Drivers
sewers into areas that are currently served by septic tanks, Aging
referred to as Contractual Assessment Districts (CADS) or other Infrastructure capacity
financing authorized by the Board of Directors.
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 �r13
provides a means to finance the cost of sewer improvements over
time at a fixed interest rate. The CAD assessments are placed on
the customers' property tax bills each year until the entire amount
is reimbursed to Central San. Each CAD is presented to the Board
of Directors for approval. '
Description: `s ,
This project will provide funding for potential CADS or other
options. Items which may be financed include:
• Central San's permit application, inspection, and related fees.
• Any Contractual Assessment District, Alhambra Valley
Assessment District or reimbursement fees owed for an existing Contractual Assessment District or
existing reimbursement
• Costs to third-party contractors for septic tank abandonment and connecting to the public sewer
(TBD)
• Costs to third-party contractors or plumbers for sewer lateral or side sewer construction (TBD)
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 will ultimately be paid back to Central San.
Location(s): Collection System
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - -
Construction - 500,000 500,000 - 1,000,000
FY Total $- $500,000 $500,000 $- $1,000,000
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Large Diameter 3iping Renovation Program— District Project TBD
Program Phase Priority Rank Ranking Score
Collection System Design/Construction Critical 75
Purpose: Project Drivers
To plan for and design large diameter trunks and interceptors Aging
replacement projects for collection system sewers that are near Infrastructure capacity
the end of their useful lives. The implementation of the repairs
and replacement will be identified as part of the condition of and
the timing for renovation needs that are identified in the Regulatory sustainability
inspection of large diameter project under District Project 8443.
f
Drivers:
Central San owns 76 miles of wastewater trunks and interceptors
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
will be evaluated under District Project 8443 for remaining life.
The bulk of the replacement is recommended within the Ten-Year
Capital Improvement Plan. Continual replacement will provide the best possible protection against
SSOs. The Large Diameter Piping Renovation Project— Phase 1 will span the next five fiscal years
(FYs 2020-27).
Description:
This project is for sewer selection planning and design work for a phased large diameter pipeline
replacement program that will be developed and prioritized based on pipe age and consequence of
failure. This project is the first of a multi-year phase replacement program and will review pipeline
data and prioritize large diameter sewers for inspection. The initial assessment will be approximately
6,000 feet of large diameter reinforced concrete sewers using enhanced CCTV.
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 2020-21 FY 2021-22 Future FYs Total
Planning $- $400,000 $- $- $400,000
Design - 1,100,000 400,000 - 1,500,000
Construction - - 1,600,000 13,500,000 15,100,000
FY Total $- $1,500,000 $2,000,000 $13,500,000 $17,000,000
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Capital Improvement Budget - Treatment Plant Program
The following are the major points of emphasis for the FY 2020-21 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;
• Rehabilitate aging infrastructure and assure process systems are reliable;
• Meet or exceed safety standards for employees;
• Respond to regulatory requirements related to pending air emissions regulations; and
• Increase sustainability and energy related projects for future sustainability.
Aging Infrastructure (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 repairing concrete structures. Other projects include the Ultraviolet
Disinfection Equipment Upgrades, District Project 7362; Plant-Wide Instrumentation Upgrades, District
Project 7357; and Influent Pump Electrical Improvements, which will extend the useful life of existing
equipment and/or facilities and replace critical infrastructure like the Headworks variable frequency
drives. Another significant project will be the continuation and completion of the final design of the
Solids Handling Facility Improvements, District Project 7348, which includes sludge blending 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 construction
of the Emergency Sludge Loading Facility Improvements, Treatment Plant Safety Enhancements - Phase
5, and the Contractor Staging Improvements projects. The Steam and Aeration Blower Systems
Renovations will continue evaluation of the aging steam systems, secondary treatment processes, and
associated electrical distribution systems. Other aging infrastructure projects include Piping
Renovation - Phase 10, Annual Infrastructure Project, and Uniform Public Construction Cost Accounting
Act Urgent Projects.
Regulatory Compliance (Includes Planning and 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. The Solids Conditioning Building and multiple
hearth furnaces seismic improvements design will continue under the Solids Handling Facility
Improvements Project. The Treatment Plant Safety Enhancement Project— Phase 5, will be
constructed this year and includes a second egress to the third floor of the Solids Conditioning Building.
Capacity(Expansion Projects)
There are no projects in the Expansion Program in FY 2020-21.
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Sustainability (Resiliency and Energy Projects)
Under this subprogram, steam and aeration blower systems at the treatment plant will continue
evaluation through condition assessments of the existing steam and electric blowers (initiate design of
electrical blower replacement), and the Lighting and Air Conditioning Project will replace equipment in
poor condition with high efficiency models.
All projects in this program are summarized, including planned expenditures, in the following Table 3:
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CIB Table 3 - FY 2020-21 Treatment Plant Program Budget/Project Summar
Project Project Budget-to- FY 2020-21 Future FYs Total Project
Number Date Cost
7304 Programmable Logic Control Systems $500,000 $120,000 $120,000 $740,000
Upgrades
7315 Applied Research and Innovations 857,274 500,000 1,000,000 2,357,274
7317 Plant Control System Network 885,000 - - 885,000
Upgrades
7322 Fire Protection System-Phase 2 1,406,000 - - 1,406,000
7328 Influent Pump Electrical Improvements 1,410,000 3,500,000 4,000,000 8,910,000
7339 Plant Control System 1/0 Replacement 2,470,000 1,000,000 1,059,000 4,529,000
7341 Walnut Creek/Grayson Creek Levee 300,000 250,000 1,200,000 1,750,000
Rehab
7348 Solids Handling Facility Improvements 15,984,000 4,000,000 108,250,000 128,234,000
7349 Steam and Aeration Blower Systems 5,000,000 2,550,000 55,500,000 63,050,000
Renovations
7351 Mechanical and Concrete Renovations 11,444,000 2,603,000 - 14,047,000
7352 Ultraviolet(UV) Disinfection Upgrades 1,100,000 250,000 - 1,350,000
7353 Outfall Improvements-Phase 7 600,000 5,100,000 500,000 6,200,000
7354 Treatment Plant Security 855,000 550,000 400,000 1,805,000
Improvements
7355 Odor Control Upgrades-Phase 1 - 300,000 1,300,000 1,600,000
7357 Plant-Wide Instrumentation Upgrades 740,000 281,000 815,000 1,836,000
7362 POB Seismic Upgrades 6,589,177 - - 6,589,177
7363 Treatment Plant Planning 1,400,000 400,000 800,000 2,600,000
7364 TP Safety Enhancement-Phase 5 1,180,000 - - 1,180,000
7369 Piping Renovation-Phase 10 750,000 2,500,000 515,000 3,765,000
7370 Annual Infrastructure Replacement 2,200,000 1,000,000 7,000,000 10,200,000
7371 Condition Assessment of Buried 250,000 250,000 516,000 1,016,000
Pipelines
7373 Fire Protection System-Phase 3 200,000 450,000 450,000 1,100,000
TBD* Laboratory Roof and Seismic Upgrades - 500,000 450,000 950,000
TBD * Hearth Replacement - 500,000 500,000 1,000,000
TBD * Air Conditioning and Lighting - 750,000 750,000 1,500,000
Renovation
TBD * Plant Electrical Replacement and - 400,000 1,600,000 2,000,000
Rehabilitation
TBD * Contractor Staging Improvements - 2,550,000 - 2,550,000
TBD* UPCCAA Urgent Projects FY 2020-25 - 600,000 2,400,000 3,000,000
TBD * UV Disinfection Replacement - 500,000 26,300,000 26,800,000
TBD * UV Hydraulic Improvements - 480,000 3,500,000 3,980,000
TBD* MRC Building Modifications - 450,000 300,000 750,000
Total Program $56,120,451 $32,334,000 $219,225,000 $307,679,451
*New projects in FY 2020-21
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Programmable Logic Control Systems Upgrades - District Project 7304
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 65
Purpose: Q�Wroject Drivers
To upgrade programmable logic control (PLC) systems to current
technology for increased performance and improved compatibility Aging Capacity
to develop and maintain programming standards. Infrastructure
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.
� r
Description:
The following are major elements included in the project: 1 - =-
• Upgrade hardware and software necessary to maintain
new PLC applications '
• Replace older computers with newer computers
capable of running current software
• Upgrade older PLC models to maintain compatibility , t
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 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $-
Design 100,000 - - 100,000
Construction 400,000 120,000 120,000 - 640,000
FY Total $500,000 $120,000 $120,000 $- $740,000
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A lied Research &Innovations — District Project 7315
Program Phase Priority Rank Ranking Score
Treatment Plant Planning/Construction Very High 65
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 _
implement applied research pilots. These pilots will help verify n`
the compatibility with wastewater and facilities, increase _
understanding of the technology, and help determine whether r
to consider the technology.
Description:
This project includes techno-economic evaluations and possible pilot testing of tertiary membrane
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+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 2020-21 FY 2021-22 Future FYs Total
Planning $857,274 $500,000 $500,000 $500,000 $2,357,274
Design - - - - -
Construction - - - - -
FY Total $857,274 $500,000 $500,000 $500,000 $2,357,274
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Plant Control System Network Upgrades — District Project 7317
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 65
Purpose:
To upgrade the Treatment Plant Control System Ethernet Network Project Drivers
to 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 3
expanded to the entire treatment plant, but the
redundancy was not maintained. Currently, the primary
path for treatment plant data traffic runs over the ethernet
system that is neither redundant nor sufficiently reliable to
meet control system standards. y ti J'i
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 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - -
Construction 885,000 - - - 885,000
FY Total $885,000 $- $- $- $885,000
204
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Influent Pump Electrical Improvements — District Project 7328
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 85
Purpose:
To address aging electrical components of the influent pumps and Aging
improve reliability. Infrastructure Capacity
Drivers:
Regulatory Sustainability
The Influent Pump Facility is critical to operations. During wet
weather, some of the pumps convey wastewater to the holding
basins. Without the pumps, wastewater cannot be treated or
k
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
• 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
• Adding submersible sump pump and wetwell isolation gates (bid alternate) for flooding protection
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Influent Pump Station (Headworks Facility)
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 910,000 - - - 910,000
Construction 400,000 3,500,000 4,000,000 - 7,900,000
FY Total $610,000 $3,500,000 $4,000,000 $- $8,910,000
205
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Plant Control System Input and Output Replacement— District Pro'ect 7339
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 70
Purpose: Project Drivers
To upgrade obsolete PLC input and output (1/0) cards and
associated systems with current technology to maintain reliable Aging Capacity
operation and vendor support.
Infrastructure P y
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 Y _
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. t
Description:
This is a multi-phase effort to replace obsolete 1/0 cards
and improve associated control system components. The
following are major elements included in the project.
• Replace obsolete 1/0 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 2020-21 FY 2021-22 Future FYs Total
Planning $200,000 $- $- $- $200,000
Design 570,000 100,000 100,000 - 770,000
Construction 1,700,000 900,000 959,000 - 3,559,000
FY Total $2,470,000 $1,000,000 $1,059,000 $- $4,529,000
206
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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
Infrastructure
Flood Control and Water Conservation District (FCD).
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 t
environment due to discharge of untreated sewage, and
impair the local economy. In 2007, the FCD implemented an
interim flood control measure to desilt the lower Walnut
Creek channel and raise the western levees of Walnut and
Grayson Creeks. Based on recent modeling, the levees
currently provide protection from a 30-year storm. The
current flood protection standard by the California Department of Water Resources is to provide
protection against at least a 200-year storm with three feet of freeboard, consider a rise in sea level,
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 2020-21 FY 2020-21 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 200,000 - - - 200,000
Construction - 250,000 300,000 900,000 1,450,000
FY Total $300,000 $250,000 $300,000 $900,000 $1,750,000
207
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Solids Handling FacifitV Improvements — District Project 7348
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 85
Purpose: Project Drivers
To rehabilitate and replace the sludge dewatering, sludge handling,
sludge blending, ash handling,furnace air pollution control equipment, Aging Capacity
and structural upgrades to the building housing this equipment. Infrastructure
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
be needed to reliably comply with current and future air
regulations. The Solids Conditioning Building that houses the
furnaces, cogeneration unit, and other critical equipment does J
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 the Solids Conditioning Building
• Replace electrical and control systems to accommodate new equipment
Operating Department Impact and Funding Source:
This project will have significant impact on the operating budgets based on staff time, energy and disposal costs.
Project expenditures are funded from Capital Revenues and from a Clean Water State Revolving Fund loan.
Location(s): Solids Conditioning Building
BudgetProject
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $1,000,000 $- $- $- $1,000,000
Design 11,090,000 1,000,000 - - 12,090,000
Construction 3,894,000 3,000,000 29,750,000 78,500,000 115,144,000
FY Total $15,984,000 $4,000,000 $29,750,000 $78,500,000 $128,234,000
208
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Steam and Aeration Blower Systems Renovations — District Project 7349
Program Phase Priority Rank Ranking Score
Treatment Plant Planning/Design/Construction Critical 80
Purpose: Project Drivers
To evaluate the existing steam system, waste heat recovery, steam
turbines, electrical power distribution system, and secondary treatment Aging
systems.
Infrastructure Capacity
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
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.
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 the future waste heat recovery system
• Evaluate and design the addition of new electrical blowers to supplement and/or replace the existing
electric blower
• Evaluate modifications to existing aeration tanks and the activated sludge system, including the secondary
clarifiers and the hydraulics
• Determine impact from recycled water exchange 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 necessary improvements 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 2020-21 FY 2021-22 Future FYs Total
Planning $2,500,000 $- $- $- $2,500,000
Design 1,750,000 1,250,000 350,000 2,250,000 5,600,000
Construction 750,000 1,750,000 4,150,000 48,750,000 57,200,000
FY Total $5,000,000 $2,550,000 $4,500,000 $51,000,000 $63,050,000
209
May 21, 2020 Regular Board Meeting Agenda Packet- Page 340 of 505
Page 234 of 358
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
Am's
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
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 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $_
Design 1,100,000 - - - 1,100,000
Construction 10,344,000 2,603,000 - - 12,947,000
FY Total $11,444,000 $2,603,000 $- $- $14,047,000
210
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Ultraviolet Disinfection Upgrades — District Pro'ect 7352
Program Phase Priority Rank Ranking Score
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:
Regulatory Sustainability
The UV disinfection system was constructed in the mid-1990s.
One of the old denitrification tanks was re-purposed for
constructing the UV channels, and some piping modifications I
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
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): Ultraviolet Disinfection System
BudgetProject
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - -
Construction 1,100,000 250,000 - 1,350,000
FY Total $1,100,000 $250,000 $- $- $1,350,000
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Outfall Improvements — Phase 7 — District Project 7353
Program Phase Priority Rank Ranking Score
Treatment Plant Construction Critical 70
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 Capacity
Infrastructure
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 over 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 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - - - 500,000
Construction - 5,100,000 500,000 - 5,600,000
FY Total $600,000 $5,100,000 $500,000 $- $6,200,000
212
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Treatment Plant Security Improvements — District Project 7354
Program Phase Priority Rank Ranking Score:
Treatment Plant Design/Construction Critical 65
Purpose:
To improve physical security at the treatment plant and to protect Project
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 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $-
Design 337,000 - - - 337,000
Construction 518,000 550,000 400,000 1,468,000
FY Total $855,000 $550,000 $400,000 $- $1,805,000
213
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Odor Control U 2grades — Phase 1 — District Project 7355
Program Phase Drinritts Rmnle Ranking Score
Treatment Plant Planning Very High 60
Purpose:
To replace existing odor control systems for the Solids
Conditioning Building, Headworks, Pre-Aeration Tanks, and Aging Capacity
Primary Effluent Channel. Infrastructure
Drivers: Regulatory Sustainability
Central San's Odor Control Facilities Plan was last updated in
2006. The update was based on an established odor
threshold of 20 dilutions to threshold. To meet this
threshold goal at the treatment plant and to address aging -
equipment, upgrades are recommended to the Solids ,.
Conditioning Building, Headworks, and Pre-Aeration Odor
Control Units. The existing odor control systems use
outdated technology with corrosive sodium hypochlorite
systems. The odor control towers, piping, panels,
ductwork, and fans are experiencing significant wear and j
require replacement. In addition, nearby surfaces such as
concrete pads and building roofs are experiencing
significant corrosion. Alternative odor control technologies
that do not use sodium hypochlorite and will minimize '
visible misting will be 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 Solids Conditioning Building's 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 2020-21 FY 2021-22 Future FYs Total
Planning $- $100,000 $- $- $100,000
Design - 200,000 - - 200,000
Construction - - 1,300,000 - 1,300,000
FY Total $- $300,000 $1,300,000 $- $1,600,000
214
May 21, 2020 Regular Board Meeting Agenda Packet- Page 345 of 505
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Plant-Wide Instrumentation Upgrades — District Project 7357
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 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
Regulatory Sustainability
wastewater operations, design, and optimization. As Central San
considers future equipment upgrades, potential nutrient removal,
and solids handling technologies, it is important to collect data
that will be useful for the evaluation and design of those facilities.
There are also return streams that Central San has limited data
for but could be helpful when evaluating future needs. In the
meantime, there are opportunities to optimize existing processes — _
and possibly reduce operations and maintenance costs; however,
key instruments are required to evaluate these opportunities.
Energy management and efficiency measures are crucial elements when striving towards net zero
energy. Power meters installed at the motor control centers and key equipment can be useful for
identifying optimization opportunities. The concept of"big data" is becoming increasingly popular and
is aimed at leveraging data to analyze trends to predict how a given process will perform in the future
and proactively make adjustments. This project will likely be constructed with other treatment 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 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 290,000 - - - 290,000
Construction 350,000 281,000 815,000 - 1,446,000
FY Total $740,000 $281,000 $815,000 $- $1,836,000
215
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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
Drivers: Aging Capacity
In January 2008,the State of California adopted the 2007 California Infrastructure
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 workspaces 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 and 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 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $_
Design 500,000 - - - 500,000
Construction 6,089,177 - 6,089,177
FY Total $6,589,177 $- $- $- $6,589,177
216
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Treatment Plant Planning— District Project 7363
Program Phase Priority Rank J6 Ranking Score
Treatment Plant Planning Critical 85
Purpose:
To complete evaluations for upcoming regulatory requirements,
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, 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 2020-21 FY 2021-22 Future FYs Total
Planning $1,400,000 $400,000 $400,000 $400,000 $2,600,000
Design - - - -
Construction - - - - -
FY Total $1,400,000 $400,000 $400,000 $400,000 $2,600,000
217
May 21, 2020 Regular Board Meeting Agenda Packet- Page 348 of 505
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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
concerns at the treatment plant as identified by staff and
to respond to regulatory requirements. Often this
response will require construction of a capital project. -- -
The first three phases of this project addressed various
safety repairs and improvements.
Description: '
- -
The project will include treatment plant facility ` '
improvements for safety, including a second emergency
exit stairway for the control room in the Solids �.
Conditioning Building.
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 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $-
Design 100,000 - - - 100,000
Construction 1,080,000 - - 1,080,000
FY Total $1,180,000 $- $- $- $1,180,000
218
May 21, 2020 Regular Board Meeting Agenda Packet- Page 349 of 505
Page 243 of 358
Piping Renovation— Phase 10 — District Project 7369
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 65
Purpose:
To inspect, rehabilitate, and replace above-grade and below-grade Project Drivers
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. Some
piping systems are leaking due to corrosion and the condition
of some systems is unknown because they have not been
visually inspected.
• � *iLLI
Description:
The following are major elements included in the project:
• Replace piping, valves, and pumps throughout the
treatment plant
• Replace the pneumatic water tanks and associated controls
• Replace water piping in the Plant Operations Building 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 2020-21 FY 2021-22 Future FYs Total
Planning $50,000 $- $- $- $50,000
Design 600,000 - - - 600,000
Construction 100,000 2,500,000 515,000 - 3,115,000
FY Total $750,000 $2,500,000 $515,000 $- $3,765,000
219
May 21, 2020 Regular Board Meeting Agenda Packet- Page 350 of 505
Page 244 of 358
Annual Infrastructure Replacement— District Project 7370
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 65
Purpose:
To fund ongoing rehabilitation and replacement of wastewater Project
treatment plant assets. This program will be continued until Aging Capacity
FY 2024-25. A new project will be set at that time. Infrastructure
Drivers: Regulatory Sustainability
The treatment plant consists of over 4,400 assets with a range of
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.
Examples include:
• Roof replacement program, including the treatment plant warehouse and standby power facility
• Pumps: Replacement or rehabilitation of pumps, chemical system tanks, valves, and piping
• Treatment plant air, process water, and fuel oil system improvements, including piping and valves
• Actuators, control panels, and other instrumentation and electrical replacements
• California Uniform Public Construction Cost Accounting Act projects that are urgent or critical
• Refurbish coating and cathodic protection systems and other miscellaneous items
• Pre-purchase of equipment for projects (e.g. large final effluent valves for the Outfall Project)
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 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $100,000 $200,000 $400,000
Design 250,000 200,000 200,000 500,000 1,150,000
Construction 1,850,000 800,000 1,200,000 4,800,000 8,650,000
FY Total $2,200,000 $1,000,000 $1,500,000 $5,500,000 $10,200,000
220
May 21, 2020 Regular Board Meeting Agenda Packet- Page 351 of 505
Page 245 of 358
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 Capacity
Infrastructure
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: 'f
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 2020-21 FY 2021-22 Future FYs Total
Planning $250,000 $250,000 $258,000 $258,000 $1,016,000
Design - - - - -
Construction - - - - -
FY Total $250,000 $250,000 $258,000 $258,000 $1,016,000
221
May 21, 2020 Regular Board Meeting Agenda Packet- Page 352 of 505
Page 246 of 358
Fire Protection System — Phase 3 — District Project 7373
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 65
Purpose: I Project Drivers
To upgrade or replace the treatment plant fire protection
systems. Aging Capacity
Infrastructure P y
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 occupants of 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 that was completed in 2013 replaced the outdated Headquarters Office
Building fire protection system and corrected limited treatment plant deficiencies
• Phase 2 of the project includes a comprehensive evaluation and implementation of recommended
improvements for life safety of occupied areas (public and staff) of all staffed and critical process
areas in the treatment plant (substantially complete)
• Phase 3 includes replacement of the fire alarm sprinkler system in the Solids Conditioning Building,
which will be a part of the Solids Handling Facility Improvements and other fire alarm
improvements.
Operating Department Impact and Funding Source:
This project will have insignificant impact to the operating budgets. Project expenditures are funded
from Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
BudgetProject
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $_
Design 100,000 150,000 - - 250,000
Construction 100,000 300,000 450,000 - 850,000
FY Total $200,000 $450,000 $450,000 $- $1,100,000
222
May 21, 2020 Regular Board Meeting Agenda Packet- Page 353 of 505
Page 247 of 358
Laboratory Roof and Seismic Upgrades - District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 75
Purpose:
Maintain a functional Laboratory building. Project Drivers
Aging
Capacity
Drivers: Infrastructure
In 2009, a Central San seismic evaluation was completed for the
treatment plant facilities (Wastewater Treatment Plant Seismic Regulatory Sustainability
Vulnerability Assessment of Selected Facilities, December 2009).
Included in the evaluation were recommendations to bring
the Laboratory up to date with current seismic design
standards.
The Laboratory building houses staff under the Environmental
and Regulatory Compliance Division in Engineering. The
Laboratory is located within the Martinez campus and is a+
occupied seven days a week. Since the Laboratory building
was constructed in early 2000 under the 1994 Building Code,
many of the modifications needed are relatively minor. Staff -
is proposing to perform the seismic modification now due to
the deterioration of the roof, which is in very poor condition.
Any floor plan modifications will be done in a cost-effective manner.
Description:
The Laboratory roof and seismic improvements will be made to meet the Damage Control Performance
Level. Modifications and the new roof will likely consist of the following:
• New lateral bracing at the moment frames
• New columns at existing brace locations (two or more) and other modifications as needed
• Replace the existing roof membrane with a roof system that is more suited for the building
• Relocate an existing air-cooled unit in the office area and evaluate the Laboratory flooring
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): Laboratory
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $_
Design 150,000 - - 150,000
Construction - 350,000 450,000 - 800,000
FY Total $- $500,000 $450,000 $- $950,000
223
May 21, 2020 Regular Board Meeting Agenda Packet- Page 354 of 505
Page 248 of 358
Hearth Replacements - District Project TBD
has�rm- Priority Rank Ranking Score
Treatment Plant Construction Critical 70
Purpose:
Continue to maintain an operable the Multiple Hearth Furnaces Project
(MHFs) inside the Solids Conditioning Building. Aging Capacity
Infrastructure
Drivers:
The MHFs are an essential process equipment for the handling and Regulatory Sustainability
disposal of the solids from the treatment process. The Plant
Maintenance Division for the Operations Department has been
monitoring the hearths within the MHFs. Based on the most
recent inspection, replacement of two hearths and possibly
up to three is recommended (one hearth replacement in —_
MHF No. 1 and possibly up to two in MHF No. 2). _ 1:3 -_
Description: -
This project will be performed by a specialty contractor with
the experience needed to rebuild brick and masonry in an _ ��-
existing incinerator. Work includes, but is not limited to, the
following:
• Confined space entry
• Demolish and rebuild a hearth within MHF Nos. 1 and 2
• Other repairs, if identified, as needed
This project will be coordinated or completed during the Solids Handling Facility Improvements 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): Plant Operations Building
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - -
Construction - 500,000 500,000 - 1,000,000
FY Total $- $500,000 $500,000 $- $1,000,000
224
May 21, 2020 Regular Board Meeting Agenda Packet- Page 355 of 505
Page 249 of 358
Air Conditioning and Lighting Renovation — District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 65
Purpose:
To replace and improve the efficiency of air conditioning and Project
lighting equipment at the treatment plant campus. Aging
Infrastructure Capacity
Drivers:
The drivers for this project include aging infrastructure and energy Regulatory Sustainability
efficiency. A number of air conditioning units at the Treatment
Plant campus have reached the end of their useful life. This project will
replace those units with more efficient versions, as well as completing
a lighting retrofit to replace existing indoor and outdoor lighting with
newer generation LED lighting. All energy efficiency investments will
be made in accordance with the payback criteria in Central San's ,.J
Energy Policy and are recommended in advance of the implementation
of Central San's solar energy project on the Lagiss Property.
Description:
• Rehabilitation and replacement work will be packaged into projects
that are scoped and funded from this program. The most likely path
forward for implementation is through a combination of procurements, possibly including the
California Uniform Public Construction Cost Accounting Act for air conditioning units and a best
value procurement for a lighting contractor.
Operating Department Impact and Funding Source:
Project expenditures will be funded from Capital Revenues. The recommended efficiency
improvements have a simple payback period of 9.4 years based on incremental costs (the cost to invest
in additional efficiency for air conditioning units at the end of their useful life) and will save Central San
approximately$84,000 per year in utility costs. Project expenditures will be funded from Capital
Revenues.
Location(s): Treatment Plant campus, including Headquarters Office Building, Plant Operations
Building, and other District buildings
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $-
Design - 150,000 - - 150,000
Construction - 600,000 750,000 - 1,350,000
FY Total $- $750,000 $750,000 $- $1,500,000
225
May 21, 2020 Regular Board Meeting Agenda Packet- Page 356 of 505
Page 250 of 358
Plant Electrical Replacement and Rehabilitation — District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 70
Purpose:
To fund ongoing rehabilitation and replacement of the treatment Project
plant electrical systems assets. Aging
Infrastructure Capacity
Drivers:
To refurbish electrical switchgears to maintain the reliability of Regulatory Sustainability
critical electrical infrastructure at the treatment plant. The
treatment plant consists of thousands of electrical assets with a
range of ages. The majority of existing treatment plant r
equipment was installed around 40 years ago. Over time,
electrical systems and other assets require rehabilitation or
replacement to continue with Central San's high level of service, I .
reliable management, and treatment of wastewater. Some of °
the improvements to be funded from this project were
identified as part of a condition assessment. Ongoing condition ow
assessments will be needed to confirm the timing of other
rehabilitation and replacement work.
Description:
The electrical switchgear throughout the treatment plant was installed in the 1970s and has been well
maintained using preventive techniques, such as thermographic imaging to identify potential problems
and correct them prior to failure. On-going inspections show that several trip units on the circuit
breakers require replacement. Treatment plant electrical rehabilitation and replacement work will be
packaged into projects that are scoped and funded from this program. Examples include the following:
electrical gears replacement program for the treatment plant and standby power facility; replacement
or rehabilitation of motor control centers, switchgears, and transformers; duct banks; conductors;
actuators and control panels; and other instrumentation and electrical replacements.
• California Uniform Public Construction Cost Accounting Act projects that are urgent or critical
• Pre-purchase of equipment for projects (e.g. variable frequency drives)
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 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $_
Design - 50,000 50,000 150,000 250,000
Construction - 350,000 350,000 1,050,000 1,750,000
FY Total $- $400,000 $400,000 $1,200,000 $2,000,000
226
May 21, 2020 Regular Board Meeting Agenda Packet- Page 357 of 505
Page 251 of 358
Contractor Sta in Im rovements — District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 65
Purpose: Project Drivers
To increase security, organize, and prepare the treatment plant for
several large future projects, such as the Solids Handling Facility Aging Capacity
Improvement and Filter Plant and Clearwell Improvements— Phase Infrastructure
1A Projects.
Regulatory Sustainability
Drivers:
Safety and security is the primary driver for this project.
The current contractor staging area is not built to secure
contractor business from normal daily operations. The r
treatment plant's main gate is used for all activities. This
project will provide security and safety improvements so
that the contractor's activities can be separated and
monitored separately from daily operations.
Description:
The project elements to be evaluated, designed and
constructed include:
• Contractor main staging area for construction trailers and contractor use; site grading and paving;
temporary material storage and stockpiling; concrete washout and equipment washing area; access
improvements and other facilities; and increase available space and laydown areas for equipment
and material storage
• Shipping, receiving, parking and designated area for contractors; delivery routes to minimize traffic
disruption, turnarounds, and additional parking areas
• Construction entrance, including a new entrance off Imhoff Drive; widen existing treatment plant
roads, as needed; and a new security guard facility, safety orientation, badging area, and gates
• Improved site lighting, fencing, signage, striping, security cameras, and badging system
• Miscellaneous elements, including demolition of abandoned infrastructure and construction of
additional staging areas throughout the treatment plant
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s):Treatment Plant
BudgetProject
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $- $50,000 $- $- $50,000
Design - 350,000 - 350,000
Construction - 2,150,000 - - 2,150,000
FY Total $- $2,550,000 $- $- $2,550,000
227
May 21, 2020 Regular Board Meeting Agenda Packet- Page 358 of 505
Page 252 of 358
UPCCAA Urgent Projects FY 2020-25 — District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction Critical 70
Purpose:
To fund ongoing rehabilitation and replacement of treatment plant • '
ject Drivers
infrastructure, equipment, and systems that meet the guidelines Aging Capacity
provided by the California Uniform Public Construction Cost Infrastructure
Accounting Act (UPCCAA), adopted by Central San in late 2018.
Regulatory Sustainability
Drivers:
The majority of existing treatment plant equipment was
installed approximately 40 years ago. Over time, electrical,
mechanical, instrumentation, and other systems require =.•.
rehabilitation or replacement to continue with Central San's
high level of service, reliable management, and treatment of
v �
wastewater. The majority of these systems are designed
and scheduled for replacement under other capital projects; 43
however, there are cases where a project is not in place or 0
an asset will need to be addressed sooner than planned.
These cases which are usually smaller construction contracts
(under $200,000) can be informally bid and built under the
UPCCAA. This project will help fund those contracts not
accounted for in other ongoing treatment plant projects.
Description:
The UPCCAA Urgent Projects FY 2020-25 is a five-year program used to fund informal projects in the
treatment plant. Examples include, but not limited to:
• Critical variable frequency drives replacements
• Pumps, piping, and critical valves replacements
• Civil work such as site repaving and concrete repairs
• Other public work type projects
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 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $_
Design - 100,000 100,000 300,000 500,000
Construction - 500,000 500,000 1,500,000 2,500,000
FY Total $- $600,000 $600,000 $1,800,000 $3,000,000
228
May 21, 2020 Regular Board Meeting Agenda Packet- Page 359 of 505
Page 253 of 358
UV Disinfection Replacement- District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Planning Critical 65
Purpose:
To replace the existing ultraviolet (UV) disinfection system. Project Drivers
Aging
Drivers: Infrastructure Capacity
The UV disinfection system was constructed in the mid-1990s to
replace the use of chlorine gas. At the time, existing denitrification Regulatory Sustainability
tanks were re-purposed for the UV channels, and some flow
routing modifications were made to the secondary clarifiers. The
UV disinfection system is now over 20 years old, and a full system
replacement will be required soon. New UV disinfection systems - =
are as much as 10-times more efficient, requiring less space and
less energy, and are equipped with improved controls and built-in
cleaning systems that can reduce maintenance needs.
Description: _
This project includes the evaluation of the following major
elements:
• Replace existing UV disinfection system, includes assessment of existing system
• Upgrades to the UV support facilities
• Expand and modify the UV electrical building and equipment to allow simultaneous construction of
a new UV disinfection system while operating a portion of the existing disinfection system
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- Ultraviolet Disinfection System
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $- $500,000 $- $- $500,000
Design - - 1,500,000 - 1,500,000
Construction - - - 24,800,000 24,800,000
FY Total $- $500,000 $1,500,000 $24,800,000 $26,800,000
229
May 21, 2020 Regular Board Meeting Agenda Packet- Page 360 of 505
Page 254 of 358
UV Hydraulic Improvements — District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Planning Very High 60
Purpose:
To increase hydraulic capacity of the ultraviolet (UV) disinfection
system. Aging
Infrastructure Capacity
Drivers:
The UV disinfection system was constructed in the mid-1990s. At Regulatory sustainability
the time, existing denitrification tanks were re-purposed for the
UV channels, and some flow routing modifications were made to
the secondary clarifiers. To provide reliable hydraulic
capacity for a 20-year wet weather event, the secondary
treatment and disinfection systems require improvements to
increase the hydraulic capacity from the current capacity of -
approximately 100 million gallons per day up to 127 million -
gallons per day. The current capacity is limited by hydraulic ' h
bottlenecks in the UV effluent channel and in the final
Ij
effluent pipeline that cause hydraulic backups in the tl
upstream secondary treatment and disinfection systems. r
Description:
• _ s R
This project includes the following major elements: ,
• Hydraulic Evaluation —Confirm UV and final effluent
hydraulics and hydraulic improvements ., ► w
• Dose Validation Testing—Confirm disinfection capacity of
UV disinfection system using latest disinfection criteria
• Parallel Final Effluent Pipe—Construct a parallel final effluent pipe adjacent to the existing 72-inch
final effluent pipe to relieve hydraulic bottleneck. A parallel pipe also enables isolation and
inspection of existing underground final effluent pipe.
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 - Ultraviolet Channel, Final Effluent Channel, Final Effluent Pipe
BudgetProject
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $- $200,000 $- $- $200,000
Design - 280,000 - 500,000 780,000
Construction - - - 3,000,000 3,000,000
FY Total $- $480,000 $- $3,500,000 $3,980,000
230
May 21, 2020 Regular Board Meeting Agenda Packet- Page 361 of 505
Page 255 of 358
MRC Building Modifications — District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction TBD TBD
Purpose:
Update the Maintenance Reliability Center(MRC) Building for improved Project
space planning and to replace outdated facilities. Aging
Infrastructure Capacity
Drivers:
The MRC building is located in the center of the treatment plant and is Regulatory Sustainability
currently occupied by the Plant Maintenance Superintendent,three
Maintenance Planners, and three of the Plant Maintenance Shops. The
MRC building was originally a pump building and laboratory in 1948 and
was remodeled in 1957 and 1972. The last modification was a seismic
remodel in 1997. Central San plans to improve security and reconfigure •' ,
the office space in order to consolidate staff into one building, including
the Plant Maintenance Division Manager and Reliability Engineering's '
Senior and Utility Systems Engineers. Reconfiguring the building's ISL
interior will include evaluating the conference room, lunchroom, and
office space. Updating the shower facilities and restrooms with hands-
free faucets will also be incorporated. Any floorplan modifications will I ..
be completed in a cost-effective manner. In addition, the design will
evaluate past seismic recommendations and bring the building up to
current code requirements.
Description:
The MRC Building Modifications' scope of work will include:
• Evaluate seismic retrofit required to meet current Building Code. The MRC is a complex facility that includes
four building components with distinct structural systems.
• Upgrade the women's and men's communal showers with individual shower partitions
• Upgrade restrooms, including plumbing modifications to hands-free faucets, and recycled water plumbing
for toilets and urinals
• Improved security access with badges, cameras, and Information Technology improvements
• Increase office space (possibly three additional offices)to house the Plant Maintenance Division Manager
and Reliability Engineering's Senior and Utility Systems Engineers, including space for an updated
conference room.
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 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $_
Design - 150,000 - - 150,000
Construction - 300,000 300,000 - 600,000
FY Total $- $450,000 $300,000 $- $750,000
231
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Page 256 of 358
Page Intentionally Blank
232
May 21, 2020 Regular Board Meeting Agenda Packet- Page 363 of 505
Page 257 of 358
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 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—New Equipment items are budgeted and shown in this document.They are
purchased and approved similar to the Vehicle Replacement Program on a yearly basis.
• 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 Enterprise Resource Planning software platform is included in the CIB.
• General Projects— Projects include improvements to Central San's buildings or properties, legal
expenses, easement acquisition, and security systems. 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.
233
May 21, 2020 Regular Board Meeting Agenda Packet- Page 364 of 505
Page 258 of 358
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 2020-21 General Improvements Program Bud
get/Project Summar
Project Project Budget-to- FY 2019-20 Future FYs Total Project
Number Date Cost
8207 General Security and Access $284,777 $200,000 $- $484,777
8230 Capital Legal Services 198,665 10,000 40,000 248,665
8236 District Easement Acquisition 333,047 75,000 75,000 483,047
8240 IT Development 3,238,794 500,000 1,000,000 4,738,794
8243 Server Room Relocation 2,000,000 - - 2,000,000
8250 Enterprise Resource Planning 3,705,000 1,200,000 300,000 5,205,000
Replacement
8251 Capital Improvement Program and 350,000 140,000 400,000 890,000
Budget Improvements
8516 Equipment Acquisition 976,000 250,000 750,000 1,976,000
8517 Vehicle Replacement Program 2,918,000 900,000 4,500,000 8,318,000
TBD * Property Repairs and Improvements - 300,000 600,000 900,000
TBD* HOB Exterior Repairs - 350,000 - 350,000
Total Program $14,004,283 $3,925,000 $7,665,000 $25,594,283
*New Projects in FY 2020-21
234
May 21, 2020 Regular Board Meeting Agenda Packet- Page 365 of 505
Page 259 of 358
General Security and Access — District Project 8207
Program Phase Priority Rank Ranking Score
General Improvements Construction Critical 65
Purpose:
To improve safety for employees and the public, meet safety Project
standards, reduce exposure to liability, reduce property loss, and Aging
reduce operations and maintenance expenses. Infrastructure capacity
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 considering malevolent and l
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): Martinez campus
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - - -
Construction 284,977 200,000 - - 484,977
FY Total $284,977 $200,000 $- $- $484,977
235
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Capital Legal Services — District Project 8230
AIIIIIIIIIIIIIIII115"MMIL ihas�rp Priority Rank Ranking Score
General Improvements All Critical N/A
Purpose:
To streamline the processing of legal bills.
Aging
Capacity
Drivers: Infrastructure
In the past, legal expenses were charged to individual
capital projects. This process required extra staff time Regulatory Sustainability
each month to review legal bills and get approvals from several
different project managers.
Description: .201
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
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $198,665 $10,000 $20,000 $20,000 $248,665
Design - - - - -
Construction - - - - -
FY Total $198,665 $10,000 $20,000 $20,000 $248,665
236
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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
Infrastructure
associated with a current capital project for sewer renovation
work.
Regulatory Sustainability
Drivers:
As capital projects are designed, sanitary sewer
easements may have to be acquired for those specific
projects. This project provides funds for the acquisition
of easements for projects where specific funds are not
identified within the sewer renovation capital
improvement projects in the CIB. 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 service area
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - -
Construction 333,047 75,000 75,000 - 483,047
FY Total $333,047 $75,000 $75,000 $- $483,047
237
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Information Technolo v Develo ment- District Project 8240
Program Phase Priority Rank Ranking Score
General Improvements Construction Critical 70
Purpose:
roject 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.
L
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
• Cybersecurity
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
BudgetProject
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - - -
Construction 3,238,794 500,000 500,000 500,000 4,738,794
FY Total $3,238,794 $500,000 F $500,000 $500,000 $4,738,794
238
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Server Room Relocation — District Project 8243
Program Phase Priority Rank Ranking Score
General Improvements Construction Critical 65
Purpose: Project Drivers
To relocate all servers, network, and other related computer
equipment from its former location in the Plant Operations Aging Capacity
Building (POB) basement to the first level. Infrastructure
Drivers: Regulatory Sustainability
The server and equipment formerly 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. That room was a '1'
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
constructed.
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 (constructed in FY 2019-20)
• 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): Plant Operations Building
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $85,000 $- $- $- $85,000
Design 250,000 - - 250,000
Construction 1,665,000 - - - 1,665,000
FY Total $2,000,000 $- $- $- $2,000,000
239
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Enterprise Resource Planning Replacement— District Project 8250
Program Phase Priority Rank Ranking Score
General Improvements Construction Critical 70
Purpose: I Project Drivers
To replace the legacy Enterprise Resource Planning (ERP) system
that manages Central San's finances, budget, human resources, Aging Capacity
procurement, payroll and other related resources.
Infrastructure p y
Drivers: Regulatory Sustainability
The existing SunGard ERP system uses outdated technology that
does not meet the current and future Central San business needs.
The latest generation of ERP systems has been developed to
implement modern best-practice processes that will help Central San
to streamline and optimize many business processes. * "
This project will eliminate the need for staff to use many manual
processes and workarounds that are currently in use to accomplish ER P
work. It will enable more organizational transparency by providing
visibility into 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, upon the full retirement of the previous ERP system and cessation of maintenance costs for
that legacy system. 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 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 200,000 - - - 200,000
Construction 3,405,000 1,200,000 300,000 - 4,905,000
FY Total $3,705,000 $1,200,000 $300,000 $- $5,205,000
240
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Capital Improvement Program and Budget Improvements - District Project 82,11
General Improvements Planning Very High 60
Purpose:
Provide for the capitalization of the staff time necessary for the Project
data gathering and production of the CIB and CIP, and for upgrades Aging
to the current program management system software, Infrastructure capacity
E-builder, and to standardize specifications and drawings used for
all Capital Projects.
Regulatory Sustainability
Drivers:
Several drivers are included in the CIP; however, the main driver is
aging infrastructure and replacement of critical equipment and CrALIMPuavEMeJrPLAN
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
0
implementation of E-builder. As of July 1, 2019, E-builder will be
done with its pilot stage and go live for all projects. I; = 9=-. CMF' Pi 0IN,
�1'lCKF� C 4iG
Description:
Upgrades of additional processes, such as master commitments ,ore�cmYF��F
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. This project will also fund efforts to standardize
design specifications and drawings for all projects.
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
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design - - - -
Construction 250,000 140,000 150,000 250,000 790,000
FY Total $350,000 $140,000 $150,000 $250,000 $890,000
241
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E ui ment Ac uisition — 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:
• Two Documenting Calibrators
• Certified Instrument Test Bench
• Miller FILTAIR SWX-S Single-Arm Package uR� `
• VIBSCANNER 2, Hybrid Triaxial
• CNC Plasma Cutting System
• Boom Truck Remote Controller
• Electric Scissor Lift
1AL".2
Operating Department Impact and Funding Source:
This project will have an insignificant impact on the operating budgets. Project expenditures are
funded from Capital Revenues.
Location(s): Central San-wide
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - -
Construction 976,000 250,000 250,000 500,000 1,976,000
FY Total $976,000 $250,000 $250,000 $500,000 $1,976,000
242
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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: 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 t
times, especially on specialized vehicles, the budget for this +,r.,
program can carry forward to the next fiscal year when delivery
takes place.
Description:
The following vehicles are being considered in FY 2020-21:
Description Description
Various Carts and Shuttles %Ton 2x4 Truck w/Fuel Tank(1)
Mid-Size Eight Passenger Vehicle(1) %Ton 42 Truck w/Small Crane(1)
Four-Door Sedan (1) %Ton 42 Truck(2)
Sewer Pipe Camera with Transporter(1) %Ton 44 Truck(1)
Trac Steer Loader(1) Y2 Ton 4x4 Truck(2)
Manhole Casting and Cover Replacement Machine(1) Y2 Ton 42 Truck(1)
Midsize Truck(1)
Operating Department Impact and Funding Source:
Project will not have an impact on operating budgets. Expenditures are funded from Capital Revenues.
Location(s): Central San-wide
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - -
Construction 2,918,000 900,000 900,000 3,600,000 8,318,000
FY Total $2,918,000 $900,000 $900,000 $3,600,000 $8,318,000
243
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Properly Repairs and Improvements - District Project TBD
Program Phase Priority Rank Ranking Score
General Improvements Construction Very High 55
Purpose:
Protect and enhance the Central San's property through repairs, Project Drivers
improvements, and needed upgrades. Aging
Infrastructure Capacity
Drivers:
Central San owns various properties surrounding the treatment Regulatory Sustainability
plant that require occasional capital repairs, improvements, and
upgrades, including 4737 Imhoff, the Annex, Headquarters Office
Building, Household Hazardous Waste Collection Facility, and _ ._.0-M-11"ft-110Z
others. The Imhoff Place properties also serve as a buffer _ -
between the treatment plant and nearby neighborhoods, and are -
used as rental property and to house some Central San work
groups and equipment. Central San also owns several buildings at
the Collection System Operations Building and Vehicle .�
Maintenance Shop that houses additional staff and equipment.
Description:
This project will fund needed improvements to Central San's buildings, buffer properties, rental
properties, and the surrounding parking lots and grounds. Items identified include resealing and
stripping the asphalt parking lots, replacing broken concrete walkways, and repairing or upgrading
interior work areas. This project may be combined and or coordinated with the HOB Exterior Repairs
Project.
Operating Department Impact and Funding Source:
This project will have an insignificant impact on the operating budgets. Project expenditures are
funded from Capital Revenues.
Location(s): Central San-wide
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - - - -
Construction 300,000 150,000 450,000 900,000
FY Total $- $300,000 $150,000 $450,000 $900,000
244
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HOB Exterior Repairs — District Project TBD
Program Phase Priority Rank Ranking Score
General Improvements Construction Very High 60
Purpose:
Protect and enhance Central San's property through repairs, Project Drivers
improvements, and needed upgrades. Aging
Infrastructure Capacity
Drivers:
The Headquarters Office Building in Martinez was built in the Regulatory Sustainability
1980's to serve as the main administration building for Central San
and includes a permit counter open to the public, Engineering,
Development Services, IT, Finance, Human Resources, Purchasing,
and other groups. The building exterior paint, caulking, roof
parapet, coatings on steel awnings, and other items are beyond
their useful life and in poor condition.
Description:
This project will re-coat the exterior stucco and perform other
repairs so that the building is watertight for years to come. This
project will be coordinated or combined with the Property Repairs
and Improvements Project.
Operating Department Impact and Funding Source:
This project will have no impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Headquarters Office Building
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $ $- $- $- $-
Design - 30,000 - - 30,000
Construction - 320,000 - 320,000
FY Total $- $350,000 $- $- $350,000
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Page Intentionally Blank
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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. 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 the cities 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, parks, a community college, an elementary "
school, three middle schools, a high school, and the _
city of Pleasant Hill. This project will ultimately deliver
1.5 million gallons per day for irrigation use in the ._
City of Pleasant Hill area. Central San will continue to rt_
collaborate with local water purveyors to identify cost-
effective landscape irrigation and industrial recycled t f
water projects.
Central San currently produces over 500 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 r
recycled water is provided to a variety of customers
in the city of Pleasant Hill, the city of Concord, and
businesses near Central San's treatment plant in
Martinez. Recycled water is used for landscape
irrigation at schools, parks, playgrounds, private
businesses, golf courses, street medians, industrial
processes, and 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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Page 272 of 358
The major emphasis of the Recycled Water Program for the next fiscal year will be to finalize design
and bid the Filter and Clearwell Improvements Project, Phase 1A. This project will improve
Central San's existing recycled water treatment facilities, storage, 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.
All projects in the Recycled Water Program are summarized; including all past, current, and planned
budgets required to complete each project as shown on the following Table 5:
CIB Table 5 — FY 2020-21 Recycled Water Program Budget/Project Summar
Project Project Budget-to- FY 2020-21 Future FYs Total Project
Number Date Cost
7306 Zone 1 Recycled Water $632,894 $100,000 $- $732,894
7346 Recycled Water Distribution System 205,000 - - 205,000
Surge Analysis
7361 Filter Plant and Clearwell 5,989,000 9,000,000 23,600,000 38,589,000
Improvements—Phase 1A
7365 Recycled Water Clearwell Repairs 1,700,000 - - 1,700,000
7366 Recycled Water Distribution System 515,000 - 1,600,000 2,115,000
Renovations Program
7368 Water Exchange Project 350,000 - - 350,000
TBD* Filter Plant and Clearwell - 400,000 32,000,000 32,400,000
Improvements—Phase 16
Total Program $9,391,894 $9,500,000 $57,200,000 $76,091,894
*New Project in FY 2020-21
248
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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 the City of Aging Capacity
Infrastructure
Pleasant Hill and portions of the cities 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
and commercial uses ranges from 200 to 400 million gallons
per year.
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-cities of Pleasant Hill, Concord, and Martinez
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2020-21 Future FYs Total
Planning $117,000 $- $- $- $117,000
Design - - - - -
Construction 515,894 100,000 - - 615,894
FY Total $632,894 $100,000 $- $- $732,894
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Recycled Water Distribution System 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
pressure transient and surge analysis of the Recycled Water Aging Capacity
Infrastructure
Distribution System.
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—cities of Pleasant Hill, Concord, and Martinez
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $205,000 $- $- $- $205,000
Design - - - - -
Construction - - - - -
FY Total $205,000 $- $- $- $205,000
250
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Filter Plant&Clearwell Improvements - Phase 1A- District Project 7361
Program Phase Priority Rank Ranking Score
Recycled Water Design Critical 80
Purpose:
To rehabilitate and replace components of the existing Filter Plant Project
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 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. 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 programmable logic controls
• Replace one filter (bid alternate) 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 (two 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 2020-21 FY 2021-22 Future FYs Total
Planning $1,130,000 $- $- $- $1,130,000
Design 2,870,000 - - - 2,870,000
Construction 1,989,000 9,000,000 12,500,000 11,100,000 34,589,000
FY Total $5,989,000 $9,000,000 $12,500,000 $11,100,000 $38,589,000
251
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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
repairs to the east cell as needed. Aging Capacity
Infrastructure
Drivers:
The Clearwell structure was installed in 1975. A cover was Regulatory Sustainability
installed on the east cell to reduce chlorine usage, prevent algae
growth, and maintain recycled water quality. The east cell
cover has deteriorated rapidly in recent years. However, it is
not feasible to repair the east cell cover due to lack of
redundancy. This project will dewater, clean, and dispose of
solids from the west cell and install a new modular cover on
the west cell to obtain redundancy and ensure reliability of the
recycled water supply system.
Description:
The project includes the following major elements:
• Dewater, clean, and dispose of solids from the west cell
• Installation of a new modular cover on the west cell
• Repair east cell cover as needed
• Minor mechanical modifications to operate the west cell
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Treatment Plant
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $- $- $- $- $-
Design 60,000 - - - 60,000
Construction 1,640,000 - - - 1,640,000
FY Total $1,700,000 $- $- $- $1,700,000
252
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Recycled Water Distribution System Renovations Program — District Project 7366
Ranking Score
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
r �
and now serves over 30 customers. Eventual ;
renovations and upgrades to the distribution system
components will be required to maintain reliable service ' N` N
1 ro �!
to Central San's recycled water customers.
Q
Description: ,
This project includes renovation of recycled water
piping, valves, meters, and other appurtenances. In
addition, this project will include upgrades to overall ' °•
n aMw
system reliability and continued condition assessment P _7
•.5
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—cities of Pleasant Hill, Concord, Martinez
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 200,000 - - 200,000
Construction 215,000 - 200,000 1,400,000 1,815,000
FY Total $515,000 $- $200,000 $1,400,000 $2,115,000
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Water Exchange Project— District Project 7368
"M "IM Priority Rank Ranking Score
Recycled Water Planning Critical 80
Purpose:
To develop a project to recycle as much of Central San's
wastewater supply as possible. Aging capacity
Infrastructure
Drivers:
Central San's Board of Directors is interested in taking Regulatory Sustainability
advantage of Central San's wastewater supply to augment
the region's water supply. This project seeks to
produce recycled water for meeting Central San's
current and future recycled water irrigation customer
demands and for meeting the recycled water quality
Y
and demands of the nearby Shell and Marathon -
refineries in the city of Martinez. ,
Description:
The planning-level effort for this project involves
evaluating a cost-effective treatment train that will,
produce both irrigation-quality recycled water to
meet Central San's current (utility water and Zone 1)
and future (Concord Community Reuse Project) Title
22 demands, in addition to producing approximately 19 million gallons per day of industrial-quality
recycled water to provide to Contra Costa Water District to serve to their City of Martinez refinery
customers. The refineries' current water supply (raw Central Valley Project water) would be freed up
and exchanged through Contra Costa Water District and conveyed to Santa Clara Valley Water District
via the proposed Transfer-Bethany Pipeline and the South Bay Aqueduct.
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 and city of Martinez
if W Project Budget
Phase: Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $350,000 $- $- $- $350,000
Design - - - - -
Construction - - - - -
FY Total $350,000 $- $- $- $350,000
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Filter Plant Improvements — Phase 113 — District Project TBD
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. Some of the Filter and some of the
elements associated with the Clearwell storage and recycled water '
pumping replacement are being implemented under the earlier
phase, Filter and Clearwell Improvement Phase 1A Project, DP
7361. That project is scheduled to go in construction this Fiscal
year. The electrical and instrumentation infrastructure is mostly ,
original, showing signs of significant wear, and requires
replacement to ensure operational reliability.
Description:
The Phase 1B project includes the following major elements:
• Rehabilitate and replace various electrical equipment (motor control centers, switchgear,
substation), and PLCs at the Filter Plant
• Replace the other three filters
• Add a chlorine contact tank to meet the requirements for Title 22 disinfection compliance
• Forebays storage improvements or new storage tanks and related equipment
• Replace pump motors and electrical at the Applied Water 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. This project may be funded using a future SRF loan.
Location(s): Treatment Plant
Project Budget
Phase Budget-to-Date FY 2020-21 FY 2021-22 Future FYs Total
Planning $-
Design - 400,000 400,000 2,200,000 3,000,000
Construction - - - 29,400,000 29,400,000
FY Total $- $400,000 $400,000 $31,600,000 $32,400,000
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Ten-Year Capital Improvement Plan
(FY 2020 - FY 2030)
OVERVIEW
Central San has developed a Ten-Year Capital Improvement Plan (Ten-Year CIP) for capital facilities and
financing needs. The Ten-Year CIP covers the period starting on July 1, 2020 and ending June 30, 2030.
It incorporates the recommendations from the June 2017 Comprehensive Wastewater Master Plan
(CWMP). The Ten-Year CIP is updated every year. Specifically, the plan identifies and prioritizes capital
projects needed to accomplish Central San's Vision, Mission, Values, and Goals. It also includes
planning-level cost estimates for proposed projects and projections for the various sources of revenue
needed to meet the cash flow requirements. The principal purpose of the Ten-Year CIP is to provide
the Board of Directors (Board) with the information needed to formulate a long-range policy regarding:
• Priority and Schedule— Identify, prioritize, and schedule the projects necessary to accomplish
Central San's Vision, Mission, Values, and Goals.
• Financing— Plan for sufficient financial resources to complete the proposed projects.
The CWMP was a critical tool used by Central San to implement the following strategies from
Central San's Strategic Plan (FY 2020-2022):
• Achieve 100% Compliance in all Regulations by meeting all air, water, land, and other
requirements and by striving to minimize sanitary sewer overflows through the implementation of
best management practices.
• Reduce Reliance on Non-Renewable Energy by using sustainable practices that minimize waste,
maximize resources, and improve the community.
• Manage Assets Optimally to Prolong Their Useful Life by facilitating long-term capital renewal and
replacement and by protecting Central San personnel and assets from threats and emergencies.
• Improve and Modernize Operations through Technology and Efficiency Measures by streamlining
workflows, leveraging data, and encouraging the review and pilot testing of new technology to
optimize the way Central San works.
The following Ten-Year CIP section provides a general description of the plan and a discussion of
potential, unbudgeted future capital projects. As projects develop and are prioritized, they are
grouped into the four programs (Treatment Plant, Collection System, General Improvements, and
Recycled Water Program) as shown in the Capital Improvement Budget (CIB).
A brief description of each program and a list of major projects for the Ten-Year CIP are provided in the
Capital Improvement Plan sections for each of the four programs. In total, the estimated costs for all
the projects listed in the Ten-Year CIP is $907.5 million.
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Ten-Year Capital Improvement Plan Budget Process
The Ten-Year CIP assumes that funds will be available to support the plan. These funds come from all
revenue sources as discussed in the Financial Overview section. The only two discretionary sources of
revenue are the sale of bonds or adjustment of the capital component of the Sewer Service Charge.
The Capital Plan assumes that two bond issuances will occur, but the Board has yet to approve the
issuance of the bonds. Central San has also applied for State Revolving Fund (SRF) loans, which may
offset in part the need for bond proceeds. The Ten-Year CIP is currently funded on a year-by-year basis
when the CIB for the upcoming fiscal year is formally authorized and adopted by the Board. Changes in
capital revenue forecasts or changes in recommended expenditures may result in changes to this
Ten-Year CIP.
2017 Comprehensive Wastewater Master Plan
The CWMP was completed in June 2017. A key deliverable of the CWMP was an updated Capital
Improvement Plan for the next 20-year planning horizon (2017-2037). The CWMP included
descriptions, rationales, and estimated costs for collection system and wastewater treatment plant
capital improvement projects and ongoing programs to address aging infrastructure, meet existing and
anticipated regulatory requirements, accommodate planned growth, optimize energy use, and
implement Central San's vision for the treatment plant that is consistent with Central San's Strategic
Plan.
The CWMP was also a critical tool for maintaining a high level of service, establishing long-term fiscally
responsible policies for Central San's customers, and providing a clear direction for Central San. To
accomplish this, the CWMP:
• Confirmed Capital Improvement Program projects, costs, and site layouts for future facilities
• Identified linkages among the major capital improvement projects and repair and replacement
strategies such that the projects can be resorted and rescheduled as changes in planning
assumptions and needs occur
• Identified triggers for implementing applied research (if applicable), preliminary design, design,
and construction of the recommended capital improvement projects to determine efficient
"just-in-time" project implementation
• Identified new or updated policies, programs, and guidelines for the Board considerations to
address overall program implementation including project prioritizations, implementation costs,
project delivery methods, potential funding sources, and an estimated schedule for implementing
plan elements
• Confirmed and incorporated operations, maintenance, and energy management strategies
• Accelerated and coordinated condition assessments with the implementation of the Asset
Management Plan and confirmed long-term repair and replacement strategies
Some of these potential future projects identified in the CWMP are not currently included in the
Ten-Year CIP. Central San's CIP will be updated annually as projects are clarified. These future projects
are not included in the CIP and amount to about $920.0 million, of which approximately$510.0 million
may be within the next 20 years.
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These projects include the following:
• Nutrient Removal (Nutrient Watershed Permit): Possibly within 10 years **
• Water Exchange (Refinery Recycled Water) Project - 20 million gallons per day
• Advanced Treatment/Contaminants of Emerging Concern Removal **
• Renewable Energy Projects (triggered by increased power demands from nutrient removal) **
• Concord Community Reuse Project Recycled Water Facilities Improvements
• Concord Community Reuse Project Collection System Improvements *
• Concord Community Reuse Project Recycled Water Distribution System (Central San's current plan
is to wholesale recycled water to Contra Costa Water District who will be in charge of the new
distribution system, including storage) *
* Projects expected to be cost neutral to Central San
**Projects identified but not currently required by regulations
Ten-Year Capital Improvement Plan — Collection System Program
The Collection System Program includes projects that will address aging and deteriorating
infrastructure needs, meet regulatory requirements, address any capacity deficiencies, and improve
sustainability or help meet sustainability related goals. The emphasis of the Ten-Year CIP—Collection
System Program will be on rehabilitating and replacing deteriorating sewers, new development and
sewer expansion by developers within Central San's service area, upgrading aging pumping stations,
and implementing large diameter and force main inspection programs. The inspection programs will
help to update the condition of existing infrastructure and to confirm the timing and cost of
rehabilitation or replacement of large diameter sewers and force mains. Overall, these projects are
targeted at reducing the risk of sewer system overflows in Central San's collection system.
Central San staff will continue to update the new collection system hydrodynamic model (InfoWorks°)
to confirm the need and timing for future projects required to alleviate capacity deficiencies and to
determine sewer replacement needs.
The InfoMaster° program uses closed-circuit television inspection scoring results, sewer cleaning
frequency data, pipe age, and other information to assign a likelihood of failure score to each pipe
segment in the collection system. The consequence of failure for each pipe segment was determined
using factors such as pipeline size, flow conditions, and proximity to waterways, hospitals, schools, and
roads. The overall risk of each segment is based on the likelihood of failure and consequence of failure
scores, and a decision matrix developed through workshops with staff were used to prioritize the
replacement of each pipe segment. InfoMaster° then helps to develop a long-term sewer replacement
strategy or program based on the timing/prioritization, and cost for sewer replacement needs. Staff
will then work to group sewers of concern geographically and bid as capital projects.
The following tables identify major projects in the Ten-Year CIP—Collection System Program. The
projects have been grouped into one of five project categories: 1) Collection System Rehabilitation and
Replacement, 2) Pumping Stations, 3) Regulatory Compliance, 4) Collection System Expansion, and
5) Contractual Assessment Districts and Development Sewerage.
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Ten-Year CIP - Collection System Program Projects
Collection System Rehabilitation and Replacement
Project Title Year(s) Location Description
Manhole Present This program will fund manhole modifications and
Modifications through 2030 Collection System replacement throughout the collection system.
Project
Implement cured-in-place pipe repair projects to address
Contract
Cured-in-PlacecPipe Present through 2030 Collection System pipelines that require immediate action. Projects are
completed in 5-year cycles.
This program will fund rehabilitation and replacement of
aging sewers throughout the collection system. Aging
infrastructure needs will continue to be identified,
Collection System prioritized by risk,and packaged into capital projects by
Sewer Renovation— 2022 to 2032 Collection System geographical areas throughout the collection system. This
Phases 2 and 3 program is also coordinated with miscellaneous relief
projects for sewers identified by the hydraulic model as
having wet weather hydraulic capacity deficiencies and
large-diameter renovation.
Force Main Evaluation and potential force main rehabilitation or
Inspection and Present to Collection System replacement for the Acacia, Bates, Maltby,and Martinez
Replacement 2028 Pumping Stations.
Future rehabilitation or replacement of large diameter
sewers based on the inspection program. This program
Large Diameter will fund rehabilitation and replacement of aging large
Renovation Present to 2030 Collection System diameter sewers throughout the collection system. Aging
Program infrastructure needs will continue to be identified,
prioritized by risk,and packaged into capital projects by
priority throughout the collection system.
Ten-Year CIP - Collection System Program Projects
Pumping Stations
Project Title Year(s) Location Description
Martinez, Fairview, Rehabilitation
ehabilitation and replacement of miscellaneous pump
s,
Pumping Station Present and Maltby piping,valveselectricalsystems,and other equipment
Upgrades—Phase 2 through 2025 pumping Stations identified in the field. Acquire necessary pumping station
emergency response equipment and critical spare parts.
Pumping Station 2023 to 2027 Miscellaneous Upgrade outdated programmable logic controller software
PLC Upgrades Pumping Stations language for all pumping stations.
Buchanan North
Pumping Station and South, Implement major pumping station upgrades to address
Improvements
2023 to 2026 Concord Industrial, structural, mechanical, electrical, instrumentation,and
and Other other improvements.
Pumping Stations
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Ten-Year CIP - Collection System Program Projects
Regulatory Compliance
Project Title Year(s) Location Description
Continued planning to identify potential capital
improvement projects required to address aging
Collection System Present Collection System infrastructure needs, regulatory drivers, capacity
Planning through 2030 deficiencies, and sustainability and optimization
opportunities. Projects are performed in 5-year cycles,
includes 5-and 10-year updates to Master Plan.
Collection System Present Continued build-out of the collection system modeled
Modeling Support through 2030 Collection System network to include areas of planned development,and
other major upgrades and updates to the hydraulic model.
Large Diameter Phased inspection program for large-diameter trunks and
Pipeline Inspection Present through 2030 Collection System interceptors to update condition and prioritize
Program rehabilitation and replacement needs.
Phased inspection program for force mains to update
Force Main Present
Inspection Program through 2030 Collection System condition and prioritize rehabilitation and replacement
needs.
Ten-Year CIP - Collection System Program Projects
Contractual Assessment Districts and Development Sewerage
Project Title Year(s) Location Description
Development Present Capitalized staff labor and expenses for the survey, rights-
Sewerage Support through 2030 Central San-wide of-way,and inspection for construction of developer
installed sewer facilities.
Ten-Year Capital Improvement Plan - Treatment Plant Program
The Treatment Plant Program includes projects that will address aging infrastructure needs, meet
regulatory requirements, address any hydraulic or process capacity deficiencies, and improve
sustainability or help meet sustainability related goals. The emphasis of the Ten-Year CIP-
Treatment Plant Program will be on the repair and replacement of aging treatment plant
infrastructure, improving existing facilities to ensure reliable compliance with increasingly stringent
regulatory requirements, improving the resiliency of existing facilities against security threats and
natural hazards such as seismic and flooding events, and improving overall energy efficiency.
Central San staff will continue to evaluate treatment alternatives and applied research projects and
pilots to address potential nutrient removal regulations, confirm the optimal long-term solids handling
strategy, and strive to move closer to net zero energy in support of Board Policy 027- Energy.
The following tables identify all the projects in the Ten-Year CIP-Treatment Plant Program. The
projects have been grouped into one or more of three project categories: 1) Liquid Treatment Process,
2) Solids Handling Process, or 3) General Treatment Plant and Safety Improvements.
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Ten-Year CIP - Treatment Plant Program Projects
Liquid Treatment Process
Project Title Year(s) Location Description
Headworks,Wet Implement improvements for wet weather flow
Wet Weather Flow 2026 to 2030 Weather Holding management and holding basin operation such as raw
Management Basins wastewater diversion pipeline,drain back pumping,sixth
influent pump,and improved basin grading and drainage.
Construct up to two additional primary sedimentation
Primary Expansion 2026 to 2031 Pre-Aeration, tanks and corresponding new pre-aeration(grit removal)
Primaries tank, improve wet weather grit handling,and replace
primary sludge pumps.
If required by regulations,construct chemically enhanced
Nutrient Removal Primary primary treatment and modify aeration and nitrification
Optimizations— 2022 to 2027 Sedimentation tanks and secondary treatment process to operate in a
Level 1 Tanks,A/N Tanks seasonal nitrification/denitrification treatment mode
during dry weather months.
Increase secondary treatment wet weather capacity to
Secondary Secondary Clarifiers accommodate a 20-year wet weather storage event. This
Treatment 2023 to 2028 and Mixed Liquor includes a mixed liquor flow split structure for the
Hydraulic Flow secondary clarifiers, up to two additional secondary
Improvements clarifiers,and mixed liquor channel improvements such as
new gates.
Increase wet weather hydraulic capacity through UV
UV Hydraulic Present to UV Channel, Final disinfection and final effluent channel to accommodate a
Improvements 2025 Effluent Channel 20-year wet weather storage event. This includes low lift
pumps to alleviate UV channel hydraulic bottlenecks and
installing a new parallel final effluent pipe.
UV Disinfection Present to UV Channel Replace the aging existing UV disinfection process with a
Replacement 2027 new, more energy efficient UV disinfection process.
Inspect the condition of several large diameter,critical
Condition pipelines on the treatment plant site such as primary
Assessment of Present to Treatment Plant effluent, mixed liquor,secondary effluent,final effluent
2023 pipelines,and wet weather bypass pipelines. These
Buried Pipelines inspections will require complicated shutdowns and
temporary bypass pumping and piping.
Outfall Inspect outfall pipe and make necessary repairs. This
Improvements— 2026 to 2028 Treatment Plant project will require complicated shutdowns and
Phase 8 temporary bypass pumping and piping.
To replace, rehabilitate,and/or improve the steam
Steam and Aeration Present turbines, aeration blowers,and improve the secondary
Blower System though 2026 Treatment Plant treatment systems related to aeration energy
Renovation Project requirements.Coordinated with the existing steam system
and heat recovery in the Solids Conditioning Building.
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Ten-Year CIP - Treatment Plant Program Projects
Solids Handling Process
Project Title Year(s) Location Description
Steam and Aeration To replace, rehabilitate, and or improve the existing steam
Present system and waste heat recovery in the Solids Conditioning
Renovation Project
Blower System though 2026 Treatment Plant Building. Coordinated with the related aeration blower
systems.
Ten-Year CIP - Treatment Plant Program Projects
General Treatment Plant and Safety Improvements
Project Title Year(s) Location Description
Continued planning to identify potential capital
Treatment Plant Present improvement projects required to address aging
Planning through 2030 Treatment Plant infrastructure needs, regulatory drivers,capacity
deficiencies,and sustainability and optimization
opportunities. Projects performed in five-year cycles.
Applied Research Present Implement applied research projects that evaluate
and Innovations through 2030 Treatment Plant promising and innovative technologies and processes.
Projects performed in five-year cycles.
Surcharge Soil Pile Surcharge Pile, Excavate and relocate surcharge pile soils to Basin A South
Relocation 2025 to 2028 Basin A South and replace soil cap.
Treatment Plant Complete an evaluation and implementation plan for the
Supervisory Control upgrade and replacement of the supervisory control and
and Data 2022 to 2026 Treatment Plant data acquisition, programmable logic controlers,and
Acquisition communications networks, and determine workforce
Improvements planning needs.
Treatment Plant Complete resiliency evaluation of network system and
Network Resiliency 2024 to 2026 Treatment Plant evaluate needs for redundancy in communications,
Evaluation information systems,and process control systems.
Continue phased upgrades and replacement of the fire
Fire Protection Present to alarm systems throughout the treatment plant. Previous
Phases 3 and 4
System— 2023 Treatment Plant plan had six phases,combined to four phase this year due
to critical to safety.
Warehouse Seismic Implement upgrades to the Warehouse building to meet
Upgrades 2022 to 2025 Warehouse current seismic design standards and improve overall
seismic safety.
Filter Plant, UV,
Miscellaneous Headworks, Fuel Implement seismic upgrades to miscellaneous structures
Seismic Upgrades 2022 to 2024 Oil, Hypo Tanks, and process equipment around the treatment plant.
Substations
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Project Title Year(s) Location Description
Treatment Plant Continue to implement safety-related enhancements
Safety Present to Treatment Plant around the treatment plant to proactively address safety
Enhancements— 2028
Phases 5 through 8 concerns.
This program will fund aging infrastructure projects around
the treatment plant. Aging infrastructure needs will
Aging Infrastructure Present continue to be packaged together and implemented
as
Replacement through 2031 Treatment Plant spinoff capital projects from this program (eg. piping
Program replacement projects,equipment replacement,and
electrical/instrumentation/control systems rehabilitation).
Program is performed in five-year cycles.
Ten-Year Capital Improvement Plan — General Improvements Program
The General Improvement Program includes projects that will address aging infrastructure needs, meet
regulatory requirements, and improve sustainability or help meet sustainability related goals. This
includes implementing property and building improvements, addressing equipment needs, acquiring
new properties if required, completing development of the Asset Management Program, information
management system and data management system upgrades, general security improvements
enhancement, and cybersecurity. Many of Central San's buildings are over 25 years of age and are
starting to require general building upgrades to both the interiors and exteriors such as painting,
replacing ceiling tiles, upgrading fixtures, replacing roofs, replacing worn furniture and other
equipment, and upgrading buildings to meet current seismic standards. The emphasis of the
General Improvement Program for the Ten-Year CIP will be on upgrading many of those aging
buildings. In addition, Central San will continue to require routine acquisition of new equipment,
vehicle replacement, security improvements, information technology improvements, and improved
cybersecurity enhancements.
The following tables identify major projects in the Ten-Year CIP—General Improvements Program. The
projects have been grouped into one of three (3) project categories: 1) Vehicles and Equipment
Acquisition, 2) Buildings and District Property, and 3) Information Technology Development.
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Ten-Year CIP - General Improvements Program Projects
Vehicles and Equipment Acquisition
Project Title Year(s) Location Description
Equipment Present Acquisition of new equipment for operation and
Acquisition through 2030 Central San-wide maintenance of Central San assets.
Vehicle Present Continued replacement and acquisition of new Central San
Replacement through 2030 Central San-wide vehicles.
Program
Ten-Year CIP - General Improvements Program Projects
Buildings and District Propert
DescriptionProject Title Year(s) Location
Future Property Improvements to Central San's buildings, buffer
Repairs and 2025 to 2030 Central San-wide properties, rental properties,and the surrounding parking
Improvements lots and grounds.
District Easement Present Improve or acquire new property land rights for existing or
Acquisition through 2030 Central San-wide new sanitary sewers that are located on private properties.
General Security Present Continued implementation of general security
and Access through 2030 Central San-wide improvements for Central San buildings and properties.
Ten-Year CIP - General Improvements Program Projects
Information Technology Development
Project Title Year(s) Location Description
Information Present Continued implementation of Central San-wide
Technology through 2030 Central San-wide information technology improvements.
Development
Ten-Year CIP - Recycled Water Program
The Recycled Water Program includes projects that will address aging infrastructure needs, meet
regulatory requirements, address any capacity deficiencies, and improve sustainability or help meet
sustainability related goals. The emphasis of the Ten-Year CIP- Recycled Water Program will be on
continued expansion of the Zone 1 Recycled Water Program in support of Board Policy 019-
Recycled Water, implementing improvements to the existing recycled water filter plant and related
support facilities to address aging infrastructure to ensure reliable supply of recycled water, replacing
and installing new clearwell liner and covers, and initiating ongoing rehabilitation and replacement of
recycled water distribution system assets.
Central San staff will continue to explore and plan for other potential recycled water projects and
related improvements and expansions that may be required. These other projects will likely involve
the wholesale of recycled water to a water purveyor. The following table identifies major projects in
the Ten-Year CIP- Recycled Water Program.
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Ten-Year CIP — Recycled Water Program Projects
Project Title Year(s) Location Description
Zone 1 Area within Continue to expand Zone 1 Recycled Water Program,where
Zone 1 Recycled Present to the Cities of cost-effective,for landscape irrigation at schools, parks,
Water 2030 Concord, Martinez, private businesses,golf courses,street medians,and for
and Pleasant Hill commercial applications such as truck washing,concrete
manufacturing,dust control,and toilet and urinal flushing.
Recycled Water Zone 1 Area within Implement a recurring rehabilitation and replacement
Distribution System Present the Cities of program for recycled water distribution system assets such
Renovations
through 2030 Concord, Martinez, as the recycled water surge tank,distribution piping,valves,
and Pleasant Hill and flow meters.
Filter Plant& Complete the rehabilitation and replacement of the
Clearwell Present to Treatment Plant recycled water treatment facilities, including two large
Improvements— 2023 storage tanks and related electrical, instrumentations and
Phase 1A control systems.
Filter Plant& Complete the rehabilitation and replacement of the
Clearwell Present to recycled water treatment facilities, including the remaining
Improvements— 2028 Treatment Plant three filters,forebays, applied water pumps,chlorine
Phase 113 contact basins, and related electrical, instrumentations and
control systems.
Ten-Year CIP Expenditures
The Ten-Year CIP provides a basis for policy decisions concerning Central San's long-range CIP and
management of the Sewer Construction Fund. The Ten-Year CIP also serves as the capital
improvement expenditure basis for performing the fee analysis.
This plan includes projected expenditures totaling $907.5 million (in 2020 dollars) over the period from
FY 2020-21 through FY 2029-30. A summary of the planned expenditures by program, without
inflation, for the Ten-Year CIP is included in Tables 1-5.
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Illustration of a Potential Central San Treatment Plant of the Future
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Table 1-Ten-Year Program:Collection SystemFiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028
Project# Project Name 10 Year Total 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
5991 Pleasant Hill Sewer Renovation-Phase 2 2,000,000 500,000 1,000,000 500,000
8419 Collection System Planning 600,000 200,000 200,000 200,000
8436 Pump Station Upgrades-Phase 1 26,684,000 14,040,000 12,644,000
8442 Pump Station Equipment&Piping Replacement-Phase 2 600,000 200,000 200,000 200,000
8443 Large Diameter Pipeline Inspection Program-Phase 1 1,076,000 530,000 546,000
8444 Force Main Inspection Program-Phase 1 1,200,000 500,000 700,000
8447 Pump Station Security Improvements 375,000 75,000 75,000 75,000 75,000 75,000
8448 Manhole Modifications 1,100,000 400,000 350,000 350,000
8449 Collection System Modeling Support 240,000 120,000 120,000
8450 Development Sewerage Support 6,300,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 - - -
8451 Collection System Sewer Renovation-Phase 1 36,456,000 17,700,000 18,756,000
8457 Pump Station Upgrades-Phase 2 30,000,000 2,400,000 2,100,000 9,000,000 10,000,000 6,500,000
TBD Cured-In-Place Pipe Blanket Contract(FY 2021-25) 1,600,000 600,000 250,000 250,000 250,000 250,000 -
TBD Contractual Assesment District Project 1,000,000 500,000 500,000
TBD Large Diameter Renovation Program 17,000,000 1,500,000 2,000,000 4,000,000 4,000,000 2,500,000 1,500,000 1,500,000
TBD Collection System Master Plan(5-Year Update) 500,000 500,000
TBD Collection System Sewer Renovation-Phase 2 103,891,000 - 19,891,000 21,000,000 21,000,000 21,000,000 21,000,000
TBD Large Diameter Pipeline Inspection Program-Phase 2 2,750,000 - 550,000 550,000 550,000 550,000 550,000
TBD Collection System Modeling Support 2022+ 985,000 - - 120,000 120,000 120,000 125,000 125,000 125,000 125,000 125,000
TBD Force Main Inspection Program-Phase 2 1,400,000 - 700,000 700,000
TBD Pump Station Improvements 2,530,000 - 515,000 515,000 1,500,000
TBD Pumping Station SCADA Upgrades 1,675,000 - 175,000 500,000 500,000 500,000
TBD Force Main Replacement Program 12,800,000 - 200,000 700,000 1,500,000 8,200,000 2,200,000
TBD Collection System Planning 2023+ 1,400,000 - 200,000 200,000 200,000 200,000 200,000 200,000 200,000
TBD Pump Station Equipment&Piping Replacement 2023+ 1,400,000 - 200,000 200,000 200,000 200,000 200,000 200,000 200,000
TBD Manhole Modifications 2023+ 2,450,000 - 350,000 350,000 350,000 350,000 350,000 350,000 350,000
TBD Pump Station PLC Upgrades 860,000 - - - 210,000 650,000
TBD Cured-In-Place Pipe(CIPP)Blanket Contract(FY 2026+) 1,800,000 - - 600,000 300,000 300,000 300,000 300,000
TBD Collection System Master Plan(10-Year Update) 1,000,000 - 1,000,000
TBD Large Diameter Renovation Program 2027+ 4,500,000 - 1,500,000 1,500,000 1,500,000
TBD Collection System Sewer Renovation-Phase 3 63,000,000 - 21,000,000 21,000,000 21,000,000
TBD Large Diameter Pipeline Inspection Program-Phase 3 1,650,000 - 550,000 550,000 550,000
TBD Development Sewerage Support 2027+ 2,700,000 900,000 900,000 900,000
TBD Force Main Replacement-Bates 2,000,000 2,000,000
Collection System Total: $ 335,522,000 $ 40,165,000 $ 40,841,000 $ 36,036,000 $ 39,235,000 $ 35,270,000 $ 29,575,000 $ 34,825,000 $ 27,325,000 $ 27,125,000 $ 25,125,000
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Table 2-Ten Year Program:Treatment PlantFiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Project# Project Name 10 Year Total 2021 2022
2023 2024 2025 2026 2027 2028 2029 2030
7304 PLC Systems Upgrades 240,000 120,000 120,000
7315 Applied Research&Innovations 1,500,000 500,000 500,000 500,000
7328 Influent Pump Electrical Improvements 7,500,000 3,500,000 3,500,000 500,000
7339 Plant Control System 1/0 Replacement 2,059,000 1,000,000 1,059,000
7341 Walnut Creek/Grayson Creek Levee Rehab 1,450,000 250,000 300,000 500,000 400,000
7348 Solids Handling Facility Improvements-Phase 1 112,250,000 4,000,000 29,750,000 32,500,000 31,000,000 14,000,000 1,000,000
7349 Steam Aeration&Blower Systems Renovations 58,050,000 2,550,000 4,500,000 13,000,000 15,500,000 15,500,000 7,000,000
7351 Mechanical and Concrete Renovations 2,603,000 2,603,000
7352 UV Disinfection Upgrades 250,000 250,000
7353 Outfall Improvements-Phase 7 5,600,000 5,100,000 500,000
7354 Treatment Plant Security Improvements 950,000 550,000 400,000
7355 Odor Control Upgrades-Phase 1 1,600,000 300,000 1,300,000
7357 Plant-Wide Instrumentation Upgrades 1,096,000 281,000 815,000
7363 Treatment Plant Planning 1,200,000 400,000 400,000 400,000 -
7369 Piping Renovation-Phase 10 3,015,000 2,500,000 515,000
7370 Annual Infrastructure Replacement FY 2019-20+ 8,000,000 1,000,000 1,500,000 1,500,000 2,000,000 2,000,000
7371 Condition Assessment of Buried Yard Pipelines 766,000 250,000 258,000 258,000 - - - - - - -
7373 Fire Protection System-Phase 3 900,000 450,000 450,000 - - - - -
TBD Laboratory Seismic&Roof Upgrades 950,000 500,000 450,000 - - - -
TBD MHF Hearth 1,000,000 500,000 500,000 - - - - - -
TBD MRC Building Improvements 750,000 450,000 300,000 - - - - - - -
TBD Air Conditioning and Lighting Renovations Project 1,500,000 750,000 750,000
TBD Plant Electrical Replacement and Rehabilitaton 2,000,000 400,000 400,000 400,000 400,000 400,000
TBD Solids Preparation Project 2,550,000 2,550,000
TBD UPCCAA Urgent Projects FY 2020-21+ 3,000,000 600,000 600,000 600,000 600,000 600,000
TBD UV Disinfection Replacement 26,800,000 500,000 1,500,000 2,800,000 7,400,000 8,400,000 6,200,000
TBD UV Hydraulic Improvements 3,980,000 480,000 500,000 3,000,000 - - - - -
TBD Piping Renovation-Phase 11 3,265,000 750,000 2,000,000 515,000
TBD TP Safety Enhancements-Phase 6 800,000 200,000 600,000
TBD Fire Protection System-Phase 4 860,000 860,000
TBD Controls System Upgrades-Phase 2 600,000 120,000 120,000 120,000 120,000 120,000
TBD Electrical Infrastructure 18,000,000 2,000,000 2,000,000 2,000,000 2,000,000 5,000,000 5,000,000
TBD Miscellaneous Seismic Upgrades 750,000 250,000 500,000
TBD Nutrient Removal Level 1-Optimization 11,450,000 450,000 1,000,000 4,000,000 5,000,000 1,000,000
TBD Treatment Plant SCADA Upgrades 8,575,000 575,000 2,000,000 3,000,000 3,000,000
TBD Warehouse Seismic Upgrades 1,200,000 300,000 600,000 300,000
TBD WWTP Master Plan(5-Year Update) 500,000 500,000 -
TBD i1seconclary Treatment Hydraulic Improvements 26,850,000 1,850,000 2,000,000 10,000,000 7,000,000 1 6,000,000 1 0
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Table 2-Ten-Yea1111111 r P1111 Jill Pill 1111111111111111111111 11111111111111111 Jill Jill III rogram:Treatment PIII III IIIIIII lant(CIIIII
ontinued) Fiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Project# Project Name 10 Year Total 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
TBD Applied Research&Innovations 2023+ 3,000,000 - - 500,000 500,000 400,000 400,000 400,000 400,000 400,000
TBD Treatment Plant Planning 2023+ 2,800,000 - - 400,000 400,000 400,000 400,000 400,000 400,000 400,000
TBD TP Safety Enhancements-Phase 7 840,000 - - - 40,000 120,000 680,000 -
TBD Treatment Plant Network Resiliency Evaluation 258,000 - - - 52,000 206,000
TBD Annual Infrastructure Replacement FY 2025-26+ 12,500,000 - - - 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
TBD CO-Gen Replacement 24,000,000 - - - 500,000 1,500,000 8,000,000 8,000,000 6,000,000
TBD Surcharge Soil Pile Relocation 15,850,000 - - - 1,450,000 7,200,000 7,200,000
TBD Treatment Plant Seismic Study 300,000 - - - 300,000
TBD Tunnel Improvements 4,500,000 - - - 2,250,000 2,250,000
TBD UPCCAA Urgent Projects FY 2025-26+ 2,500,000 - - - 500,000 500,000 500,000 500,000 500,000
TBD Plant Electrical Replacement and Rehabilitaton 2025+ 2,000,000 - - - 400,000 400,000 400,000 400,000 400,000
TBD Outfall Improvements-Phase 8 4,582,000 - - - 582,000 4,000,000
TBD Primary Expansion 25,500,000 - - - 1,000,000 2,500,000 11,000,000 11,000,000
TBD Standby Generator Expansion 5,200,000 - - - 2,600,000 2,600,000
TBD Wet Weather Flow Management 18,582,000 - - - 800,000 2,000,000 6,782,000 9,000,000
TBD WWTP Master Plan(10-Year Update) 1,000,000 - - - 500,000 500,000
TBD Controls System Upgrades-Phase 3 375,000 - - - 125,000 125,000 125,000
TBD Odor Control Upgrades-Phase 2 7,280,000 - - - 780,000 1,500,000 5,000,000
TBD TP Safety Enhancements-Phase 8 780,000 - - - 50,000 80,000 650,000
TBD ISolids Handling Facility Improvements-DAFT Tanks 900,000 - - -i 900,000
Treatment Plant Total: $ 457,156,000 $ 32,334,000 $ 51,317,000 $ 55,813,000 $ 62,685,000 $ 55,312,000 $ 45,546,000 $ 37,632,000 $ 42,955,000 $ 36,687,000 $ 36,875,000
Table 3 Ten-Year Program:
EEC= M Fiscal Year 2020 2021 2022 2023 2024 2025 .
Project# Project Name 10 Year Total 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
8207 General Security and Access 200,000 200,000
8230 Capital Legal Services 50,000 10,000 20,000 20,000
8236 District Easement Acquisition 150,000 75,000 75,000
8240 IT Development FY 2016-25 1,500,000 500,000 500,000 500,000
8250 ERP Replacement 1,700,000 1,400,000 300,000
8251 Capital Improvement Plan&Budget(Document Management) 540,000 140,000 150,000 150,000 100,000
8516 Equipment Acquisition 1,000,000 250,000 250,000 250,000 250,000
8517 Vehicle Replacement Program FY 2016-26 5,400,000 900,000 900,000 900,000 900,000 900,000 900,000
TBD Property Repairs and Improvements 900,000 300,000 150,000 150,000 150,000 150,000
TBD HOB Exterior Repairs 350,000 350,000
TBD Security Improvements Study(5-Year) 500,000 200,000 100,000 100,000 100,000
TBD District Easement Acquisition 2022+ 600,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
TBD Capital Legal Services 2023+ 180,000 20,000 20,000 20,000 20,000 20,000 20,000 60,000
TBD Equipment Acquisition FY 2024+ 1,600,000 250,000 250,000 250,000 250,000 250,000 350,000
TBD Security Improvements Study(10-Year) 500,000 - - 100,000 100,000 100,000 100,000 100,000
TBD IT Development FY 2023+ 3,100,000 500,000 500,000 400,000 400,000 400,000 400,000 500,000
TBD Future Property Repairs and Improvements 2025+ 1,000,000 150,000 150,000 150,000 150,000 400,000
TBD Vehicle Replacement Program FY 2026+ 3,400,000 800,000 800,000 800,000 1,000,000
General Improvements Total: $ 22,670,000 $ 4,125,000 $ 2,545,000 $ 2,145,000 $ 2,095,000 $ 1,995,000 $ 1,895,000 $ 1,795,000 $ 1,795,000 $ 1,795,000 $ 2,485,000
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Table 4-Ten-Year Program:Recycled WaterFiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Project# Project Name 10 Year Total 2021 2022 2023 2024 2025 2026
2027 2028 2029 2030
7306 Zone 1 Recycled Water 100,000 100,000
7361 Filter Plant and Clearwell Improvements-Phase 1A 32,600,000 9,000,000 12,500,000 11,100,000
7366 Recycled Water Distribution Systems Renovations Program 1,600,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 -
TBD Zone 1 Recycled Water 2021+ 900,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
TBD Filter Plant and Clearwell Improvements-Phase 113 32,400,000 400,000 400,000 1,600,000 5,000,000 11,000,000 13,000,000 1,000,000
TBD Recycled Water Distribution Systems Renovations Program 200,000 - 200,000
Recycled Water Total: $ 67,800,000 $ 9,500,000 $ 13,200,000 $ 13,000,000 $ 300,000 $ 5,300,000 $ 11,300,000 $ 13,300,000 $ 1,300,000 $ 300,000 $ 300,000
Table 5-Ten-Year Program:Totals by ProgramFiscal Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Programs 10 Year Total 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Collection System 335,522,000 40,165,000 40,841,000 36,036,000 39,235,000 35,270,000 29,575,000 34,825,000 27,325,000 27,125,000 25,125,000
Treatment Plant 457,156,000 32,334,000 51,317,000 55,813,000 62,685,000 55,312,000 45,546,000 37,632,000 42,955,000 36,687,000 36,875,000
General Improvements 22,670,000 4,125,000 2,545,000 2,145,000 2,095,000 1,995,000 1,895,000 1,795,000 1,795,000 1,795,000 2,485,000
Recycled Water 67,800,000 9,500,000 13,200,000 13,000,000 300,000 5,300,000 11,300,000 13,300,000 1,300,000 300,000 300,000
Subtotal 883,148,000 86,124,000 107,903,000 106,994,000 104,315,000 97,877,000 88,316,000 87,552,000 73,375,000 65,907,000 64,785,000
Contingency 24,600,000 2,100,000 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 Contigency $ 907,748,000 $ 88,224,000 $ 110,403,000 $ 109,494,000 $ 106,815,000 $ 100,377,000 $ 90,816,000 $ 90,052,000 $ 75,875,000 $ 68,407,000 $ 67,285,000
(Note:All costs in 2020 dollars)
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Debt Program
Since 2009, Central San has utilized a pay-as-you-go philosophy for capital expenditures. In 2009,
and in some earlier years, Central San utilized long-term financing through obligations issued by the
Central Contra Costa Sanitary District Facilities Financing Authority. The 2009 obligations
(certificates of participation) were issued for the purpose of providing funding for new capital
expenditures and to refinance existing debt. In 2018, Central San refinanced the 2009 obligations
by issuing revenue bonds. Both types of financial obligations are referred to in this document as
bonds or debt.
Central San's debt service is presently funded by ad valorem tax and interest income. Debt service is
projected at 2.5 million, a reduction from 3.0 million in FY 2019-20 due a reduction in the principal
repayment schedule for the 2018 bonds (from 2.1 million to 1.7 million). Table 1 summarizes the debt
service sub-fund budget.
Table 1— Debt Service Sub-Fund Budget Summar
Debt Service Sub-Fund FY 201-18 FY 2019-20 FY 2020-21
Actual Budget Budget
Debt Service Revenue:
Reserve Account Bond Interest Income $2,437 $- $_
Ad Valorem Tax(Portion Allocated to Debt Service) 3,502,568 2,982,415 2,517,605
Total Revenue $3,505,005 $2,982,415 $2,517,605
Debt Service Expense:
2009 Bond Interest Payment and Amortized Costs, Less Subsidy on Build $250,355 $- $_
America Bonds(BABs)
2018 Bond Interest Payment and Amortized Costs 774,651 837,415 777,605
Recycled Water Loan Interest Payment - - -
Total Interest Payment and Amortization Costs $1,025,006 $837,415 $777,605
2009 Bond Principal Payment 2,480,000 - -
2018 Bond Principal Payment - 2,145,000 1,740,000
Recycled Water Principal Payment - - -
Total Principal Payments 2,480,000 2,145,000 1,740,000
Total Debt Service Interest,Amortized Cost,and Principal Payments $3,505,006 $2,982,415 $2,517,605
2018 Revenue Bonds
In September 2018, Central San issued 19.5 million of Wastewater Revenue Refunding Bonds in
two series (tax-exempt Series A for 15.1 million and federally taxable Series B for 4.3 million) to refund
outstanding 2009 bonds. The transaction was undertaken to take advantage of lower interest rates
and to reduce risk of reduced credits from the federal government budget related sequestration
affecting the Series 2009 Build America Bonds (BABs). The transaction resulted in 8.2 million of
interest savings through FY 2029-30, from lower interest rates and reducing outstanding principal
through eliminating a debt service reserve fund that was previously held for the 2009 bonds. The
2018 Revenue Bonds have a revised rate covenant as compared to the 2009 bonds, providing for a
Net Revenues Covenant and a Gross Revenues Covenant.
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In short:
• Net Revenues (Gross Revenues excluding capacity fees and after payment of Operations and
Maintenance (O&M) Costs) plus Tax Revenues are to be at least 125% of debt service in a fiscal
year.
• Gross Revenues (Gross Revenues including capacity fees and after payment of O&M Costs) plus Tax
Revenues are to be at least 100% of debt service in a fiscal year.
Figure 2 shows coverage ratios using the pre-2018 covenants and using the 2018 covenants.
2009 Bonds/Certificates of Participation (No Longer Outstanding)
The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B (bonds) were
originally issued for 19.6 million and 34.5 million, respectively, on November 12, 2009 and
December 3, 2009. The proceeds were used in part to finance new capital expenditures
(17.3 million of Series A and 12.7 million of Series B), to refund previous debt (20.2 million of Series B),
and to pay costs of issuance. The Series A Bonds were federally taxable BABs, which received a rate
subsidy from the federal government. Coupons on this series ranged from 5.20%to 5.70%, while yields
ranged from 3.45%to 3.78% net of the subsidy. The Series B bonds were tax-exempt bonds that were
used to refund the 1998 and 2002 bond issuances and raise an additional 30.0 million in new proceeds,
with coupons ranging from 4.0%to 5.0% and yields ranging from 0.40%to 3.79%. The two bonds
originally totaled 54.1 million and were secured by a pledge of tax and net revenues of the wastewater
system. Both bonds had original maturities through September 1, 2029. The Series A bonds were
called through an extraordinary call provision and redeemed in September 2018. The Series B bonds
were advance refunded with the establishment of an escrow account from Series 2018 B bond
proceeds and will be formally retired on the normal call date of September 1, 2019.
Reclamation Loan (No Longer Outstanding)
In FY 2017-18, Central San paid the final installment on a 2.9 million loan from FY 1998-99 with the
California State Water Resources Control Board (SWRCB). The loan advanced Central San funds for the
design and construction costs for projects related to recycled water treatment programs. Central San
repaid advances from the California SWRCB over a 20-year period ending in
FY 2017-18.
Additional Planned Debt Issuance
Central San anticipates utilizing long-term financing in FY 2020-21 to finance certain projects outlined
in the 10-Year CIP, including those specified in the Comprehensive Wastewater Master Plan. A new
Debt Management and Continuing Disclosure Policy was adopted during FY 2017-18, which specifies
the conditions under which debt and other forms of external financing can be used.
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In December 2018, Central San applied for an 89.6 million loan through a competitive process with the
California SWRCB to fund solids handling improvements to the treatment plant. Central San's project
was selected as part of the Intended Use Plan for State Revolving Fund (SRF) funds at a public hearing
on June 18, 2019. Central San has continued to dialogue with SWRCB regarding the project and
anticipates requesting an increase in the funding amount from 89.6 million to reflect higher than
anticipated project costs that those specified upon the completion of the 90% design specifications in
early 2020. After finalization of a loan agreement, borrowings are expected to commence in
FY 2020-21, with 3 million drawn from the loan facility.
Central San's 10-year financial plan also anticipates additional borrowing (subject to Board approval)
which may be in the form of either revenue bonds or an additional loan from the Clean Water SRF and
Water Recycling Funding Programs of the SWRCB.
Figure 1 and Table 2 summarize Central San's historical and currently outstanding debt service
obligations.
Figure 1 — Debt Service by Type
Figure 1 shows annual debt service for past and existing bonds. As described above, potential additional debt issuances
could add to debt service requirements in future years.
$7,000,000
55,000,000
55,000,000
$4,000,000
53,000,000
52,000,000
51,000,000
50 '
En"� a+ cl m IM o 0 0 0 0 0 0 M n r•, rV i�S tr��� pgppi �*t
ifl lD h W O r1 Cy CD N [D CW 6t G� .moi rNy ae-1 -I N rl I M CNV VN N iV N N
X1 F1 6y1 O5 pOp��t 65 pO�i M Ot pOp 0p Q 0Q Ca p O p O �y O0CD Q p O o O p O a p p p p a p p a o R Q O p p 6 o p
*1994/1998/2002 Refunding Revenue Bonds
■2009 Bonds
■Recycled Water Loan
■2019 Bonds
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Table 2 -Debt Summary(Currently Outstanding Debt)
Debt service related to the currently outstanding 2018 Series A and Series B bonds is shown below.
2018 Bonds
Fiscal Year Principal Amortization and Interest Total Debt Service
2019-20 $2,145,000 $837,415 $2,982,415
2020-21 1,740,000 777,605 2,517,605
2021-22 1,805,000 706,227 2,511,227
2022-23 1,885,000 624,797 2,509,797
2023-24 1,965,000 539,267 2,504,267
2024-25 1,465,000 458,875 1,923,875
2025-26 1,535,000 383,875 1,918,875
2026-27 1,610,000 305,520 1,915,520
2027-28 1,685,000 222,875 1,907,875
2028-29 1,765,000 136,625 1,901,625
2029-30 1,850,000 46,250 1,896,250
Debt Related Covenants
An important financial performance metric is the Debt Service Coverage Ratio. The Board's targeted
coverage ratio is 2.0 times. As shown in Figure 2, Central San will more than meet that target.
FY 2018-19 coverage was very high due to several factors including: (1) low debt service in FY 2018-19
due to the refinancing of debt; (2) lower than typical Operating Expenses Less Depreciation due to a
large OPEB adjustment (30.4 million) from the transition to the CalPERS healthcare plan.
Figure 2 - Historic and Projected Debt Service Coverage Ratio
120.0C
——— 2009 Bonds
100.00 Adjusted Net
Revenue Debt
Coverag e R at io
80.00
2009 Bonds Net
60.00 Revenue Debt
Service Coverage
Ratio
40.00
2000 2018 Bonds Gross
Rev enue C oven ant
0.00
yti� Ai��� 2018 Bonds Net
-Lti��oL1°�Z, RevertueCaverant
F F
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As noted previously, the calculation has changed slightly in connection with the 2018 bonds. Through
FY 2018-19, Bond Covenants on 2009 bonds provided for the following covenants:
• Net Revenue: This ratio must be above 1.00 to meet the Debt Rate Covenant
(Net Revenue/Total Debt Service)
• Adjusted Net Revenue: Net Revenue less Capital Improvement Fees (capacity fees) and
City of Concord Capital Charges. This ratio must be above 1.25 to meet the Debt Rate Covenant
(Adjusted Net Revenue/Total Debt Service)
The Series 2018 A and B Revenue Bonds have the following covenants:
• Net Revenues Covenant: Net revenues (gross revenues excluding capacity fees and after payment
of 0&M costs) plus tax revenues are to be at least 125% of debt service in a fiscal year.
• Gross Revenues Covenant: Gross revenues (gross revenues including capacity fees and after
payment of O&M Costs) plus tax revenues are to be at least 100% of debt service in a fiscal year.
Externally Imposed Debt Limits
Central San, as a sanitary district, is subject to certain limits on the direct issuance of bonds payable
from proceeds of taxes levied on taxable property in the district. Total bonds issued by Central San
cannot exceed 15-20% (depending on some factors) of the assessed value of real and personal
property in the District (Health and Safety Code Section 6651). Bond issuances of this nature would
require an election with 2/3 voter approval (H&S Code 6644). Central San has no bonds subject to this
limitation outstanding. Refunding bonds are not subject to the limitation and election requirement. In
2009 (and previously in 1994 and 2002), Central San financed a portion of its capital improvements
through the use of a joint powers authority (JPA), using a form of an installment sale agreement with a
similar payment structure as a bond. In such an arrangement, the financing authority issues bonds or
certificates of participation, with the installment sale agreement supporting the JPA bonds (payments
on the installment agreement received by the JPA pay the JPA's bonds). This structure is typical for
California special districts and is not subject to the bond election and debt limits described in the
preceding paragraph.
External financing of part of the capital program is anticipated FY 2020-21 through a loan
from the California SWRCB for the Solids Handling Facility Improvements project. This financing, and
other financing currently anticipated within the 10-year financial planning horizon, is forecast to be
well below the limits noted above.
Agency Debt Limits
Central San's Debt Management and Continuing Disclosure Policy adopted during FY 2017-18 (and
subsequently updated in FY 2019-20) specifies the conditions under which debt and other forms of
external financing can be used. This policy is intended to cover both Central San and the Central
Contra Costa Sanitary District Facilities Financing Authority, for "debt" in a broad sense, as well as
other external financial obligations such as an Installment Sale Agreement, which is not a bond and
technically is not considered a debt. This policy (Board Policy 029) provides certain guidance on the
use of debt and financial obligations, as follows:
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Debt Management and Continuing Disclosure Policy
Standards for Use of Debt Financing
The District shall integrate its debt issuances with the goals of its Capital Improvement Program (CIP) by
timing the issuance of debt to ensure that projects are available when needed in furtherance of the
District's public purposes (as articulated in, inter alia, the District's mission, vision and goals) and are
consistent with the rate and financial planning parameters specified in the District's long-term financial
plans. The Board shall be presented with a long-term financial plan in each instance Sewer Service
Charge rates are to be adjusted.
1. The long-term financial plans will specify an expected debt issuance amount over a
decade or more long-term planning horizon.
a. The District shall target rate or tax revenue funding of, at a minimum, the
value of the collection system replacement program (specifically, pipeline
replacement) component of the CIP.
b. Not more than 60%of the overall CIP shall be financed with debt.
2. All projects in the CIP are eligible to use debt financing, so long as the minimum rate
or tax revenues are generated as described in this section.
This policy does not contemplate the use of debt financing to fund ongoing operating and maintenance
expenditures; exceptions beyond a de-minimis amount would require approval of the Board. With
respect to debt repayment and amortization, the debt repayment period should be structured so that
the weighted average maturity of the debt does not exceed 100% of the expected average useful life of
the project being financed.
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Supplemental Financial Information
This section contains supplemental financial information regarding salaries and benefits, an additional
analysis of Changes in Net Position and Fund Equity, and a chart of Central San ad valorem property tax
collections compared to assessed values.
Table 1 - Salaries, Benefits, Retiree and Unfunded Liabilities Detail
Total Central San
Total Central San
FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21 Budgetto
Budget Actual Budget Budget Budget
Variance
Salaries $37,906,114 $36,317,044 $40,043,011 $41,903,973 $1,860,962
Salary Vacancy (1,193,000) - (585,000) (1,078,000) (493,000)
Overtime 1,222,429 1,220,692 1,481,380 1,695,518 214,138
Standby 375,200 393,510 377,000 419,000 42,000
Compensated Absences Payout 850,000 981,593 850,000 850,000 -
Total Salaries $39,160,743 $37,931,246 $41,316,391 $42,940,491 $1,624,100
Current Employee Benefits $19,395,318 $18,469,890 $18,420,313 $18,751,483 $331,170
Benefit Vacancy (1,006,000) (636,000) (581,000) 55,000
Total Benefits(Active Employees) $18,389,318 $18,469,890 $17,784,313 $18,170,483 $386,170
Total Salaries and Benefits
(Active Employees) $57,550,061 $57,382,729 $59,950,704 $61,960,974 $2,010,270
Capitalized Administrative O/H
Total Salaries and Benefits(Active
Employees)after Capitalized $57,550,061 $57,382,729 $59,950,704 $61,960,974 $2,010,270
Administrative O/H
Retiree Benefit Costs $5,100,284 $4,934,255 $2,346,076 $2,451,000 $104,924
UAAL/Unfunded Liabilities 13,220,478 13,706,313 12,436,841 13,376,016 939,175
Total Benefits and Liabilities for Past
$18,320,762 $18,640,568 $14,782,917 $15,827,016 $1,044,099
Service
Total Salaries,Benefits&Liabilities
for Past Service $75,870,823 $76,023,297 $74,733,621 $77,787,990 $3,054,369
(Active and Retiree)
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Table 2 - Salaries, Benefits, Retiree and Unfunded Liabilities Detail
Operations &Maintenance Sub-Fund
_-q�s�tions&Maintenance Sub-Fund
FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21 Budget to
Budget Actual Budget Budget Budget
Variance
Salaries $34,840,679 $33,323,178 $36,494,440 $37,749,821 $1,255,381
Salary Vacancy (1,111,000) - (538,000) (990,000) (452,000)
Overtime 1,120,808 1,132,231 1,381,653 1,514,370 132,717
Standby 375,200 393,510 377,000 419,000 42,000
Compensated Absences Payout 850,000 981,593 850,000 850,000 -
Total Salaries $36,075,687 $35,830,512 $38,565,093 $39,543,191 $978,098
Current Employee Benefits $18,101,055 $17,239,368 $17,066,934 $17,209,569 $142,635
Benefit Vacancy (1,006,000) (636,000) (581,000) 55,000
Total Benefits(Active Employees) $17,095,055 $17,239,368 $16,430,934 $16,628,569 $197,635
Total Salaries and Benefits $53,170,742 $53,069,880 $54,996,027 $56,171,760 $1,175,733
(Active Employees)
Capitalized Administrative 0/H (3,979,723) (4,012,147) (4,448,369) (5,083,396) (635,027)
Total Salaries and Benefits(Active
Employees)after Capitalized $49,191,019 $49,057,733 $50,547,658 $51,088,364 $540,706
Administrative O/H
Retiree Benefit Costs $5,100,284 $4,934,255 $2,346,076 $2,451,000 $104,924
UAAL/Unfunded Liabilities 13,220,478 13,706,313 12,436,841 13,376,016 939,175
Total Benefits and Liabilities for Past $18,320,762 $18,640,568 $14,782,917 $15,827,016 $1,044,099
Service
Total Salaries,Benefits&Liabilities
for Past Service $67,511,781 $67,698,301 $65,330,575 $66,915,380 $1,584,805
(Active and Retiree)
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Table 3 - Salaries, Benefits, Retiree and Unfunded Liabilities Detail
Sewer Construction Sub-Fund
L Sewer Construction Sub-Fund
FY 2018-19 FY 2018-19 FY 2019-20 FY 2020-21 Budget to
Budget Actual Budget Budget Budget
a MM Variance
Salaries $3,065,435 $2,993,866 $3,548,571 $4,154,152 $605,581
Salary Vacancy (82,000) (47,000) (88,000) (41,000)
Overtime - - - - -
Standby 101,621 88,460 99,727 181,148 81,421
Compensated Absences Payout - - - - -
Total Salaries $3,085,056 $3,082,326 $3,601,298 $4,247,300 $646,002
Current Employee Benefits $1,294,263 $1,230,523 $1,353,379 $1,541,914 $188,535
Benefit Vacancy -
Total Benefits(Active Employees) $1,294,263 $1,230,523 $1,353,379 $1,541,914 $188,535
Total Salaries and Benefits $4,379,319 $4,312,849 $4,954,677 $5,789,214 $834,537
(Active Employees)
Capitalized Administrative Overhead 3,979,723 4,012,147 4,448,369 5,083,396 635,027
Total Salaries and Benefits(Active
Employees)after Capitalized $8,359,042 $8,324,995 $9,403,046 $10,872,610 $1,469,564
Administrative Overhead
Retiree Benefit Costs
UAAL/Unfunded Liabilities
Total Benefits and Liabilities for _
Past Service
IN
Total Salaries,Benefits&Liabilities
for Past Service $8,359,042 $8,324,995 $9,403,046 $10,872,610 $1,469,564
(Active and Retiree)
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Table 4 shows the allocation of Central San Salaries & Benefits to the O&M Fund and the Sewer
Construction Fund.
Table 4- Salaries, Benefits (Detailed), Retiree and Unfunded Liabilities
BudgetFY 2018-19 FY 2018-19 FY 2019-20 FY 2019-20 FY 2020-21 Budgetto Percent
Account Description .• Budget
Variance
O&M Salaries&Benefits
-Active Employees 7
O&M Salaries $36,075,687 $35,830,512 $38,565,093 $36,932,653 $39,543,191 $978,098 2.5%
O&M Benefits
(Active Employees)
0&M Workers' 483,026 419,341 812,844 735,010 826,417 13,573 1.7%
Compensation
0&M Medical,Health, 6,684,177 6,729,164 5,951,499 5,541,422 5,938,569 (12,930) -0.2%
Vision
O&M Dental 531,242 513,811 542,663 478,363 482,595 (60,068) -11.1%
O&M Retirement- 5,291,401 4,715,811 5,345,728 5,187,473 5,181,105 (164,623) -3.1%
Normal Cost
O&M Deferred Comp 1,956,261 1,946,946 1,990,654 2,073,898 2,378,209 387,555 19.5%
0&M Federal 500,940 503,185 527,051 514,465 543,359 16,308 3.1%
Medicare Tax
0&M Other Benefits 230,292 65,124 241,571 155,820 218,315 (23,256) -9.6%
0&M OPEB(Health)- 2,256,262 2,203,115 1,499,089 1,494,000 1,504,000 4,911 0.3%
Normal Cost
O&M OPEB(Dental)- 156,713 132,316 153,836 134,000 135,000 (18,836) -12.2%
Normal Cost
0&M OPEB(Life)
Normal Cost 10,741 10,554 2,000 2,000 2,000 0.0%
0&M Accrued
Compensated Absence
0.0%
(now included in
Salaries)
0&M Benefit Vacancy (1,006,000) - (636,000) - (581,000) 55,000 -8.6%
Factor
O&M Benefits(Active $17,095,055 $17,239,368 $16,430,934 $16,316,451 $16,628,569 $197,635 1.2%
Employees)
O&M Capitalized
Administrative Overhead
Credit(indirect costs
associated with non ($3,979,723) ($4,012,147) ($4,448,369) ($4,681,539) ($5,083,396) ($635,027) 14.3%
productive hours and
Admin Overhead)
O&M Benefits less Cap $13,115,332 $13,227,221 $11,982,565 $11,634,912 $11,545,173 $(437,392) -3.7%
O/H Credit(Active)
O&M Salaries&Benefits $49,191,019 $49,057,733 $50,547,658 $48,567,565 $51,088,364 $540,706 1.1%
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Table 4- Salaries, Benefits (Detailed), Retiree and Unfunded Liabilities (Continued)
Budget-9 FY 2018-11 ' FY 2019-20--FY 2019-20 FY 2020-21 Budgetto Percent]
Account Descriptioln .•et Projected Budget Budget
Variance
Capital
Capital Salary and $4,379,319 $4,312,849 $4,954,677 $5,035,963 $5,789,214 $834,537 16.8%
Benefits*
Portion of Capitalized 31979,723 4,012,147 4,448,369 4,681,539 5,083,396 635,027 14.3%
Overhead from above
Capital Salary,Benefits
and Capitalized Overhead $8,359,042 $8,324,995 $9,403,046 $9,717,502 $10,872,610 $1,469,564 15.6%
O&M and Capital Salaries $57,550,061 $57,382,729 $59,950,704 $58,285,067 $61,960,974 $2,010,270 3.4%
and Benefits(Active)
Benefits-Retiree
O&M OPEB(Health)- $4,616,204 $4,507,467 $2,035,911 $2,029,000 $2,156,000 $120,089 5.9%
UAAL
O&M OPEB(Dental)- 353,394 298,376 195,164 170,000 176,000 (19,164) -9.8%
UAAL
O&M OPEB(Life)-UAAL 130,686 128,412 115,000 115,000 119,000 4,000 3.5%
O&M OPEB(Vision)-
UAAL - 0.0%
Retiree Benefits $5,100,284 $4,934,255 $2,346,076 $2,314,000 $2,451,000 $104,924 4.5%
UAAL/Unfunded
Liabilities 1 0
Pension UAAL/Unfunded
Liabilities $10,720,478 $11,206,313 $11,186,841 $11,254,802 $12,126,016 $939,175 8.4%
Pension Additional UAAL 2,500,000 2,500,000 1,250,000 1,250,000 1,250,000 - 0.0%
Contributions
Total UAAL/Unfunded
Liabilities $13,220,478 $13,706,313 $12,436,841 $12,504,802 $13,376,016 $939,175 7.6%
Total
Total O&M Salaries&
Benefits,Capital,Retiree
Benefits,and Unfunded $75,870,823 $76,023,297 $74,733,621 $73,103,869 $77,787,990 $3,054,369 4.1%
Liabilities
*Comprised of capitalized Salaries& Benefits charged to Central San Capital projects.
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Table 5 — Changes in Net Position and Fund Equity
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Actual Actual Projected Projected
Total Operating Revenue $92,496,435 $85,678,166 $90,705,844 $66,737,311
Total Non-Operating Revenues 22,542,065 24,898,986 23,407,315 22,305,505
Total Revenues $115,038,500 $110,577,152 $114,113,159 $89,040,816
Total Operating Expenses $109,681,078 $73,278,924 $106,901,430 $111,666,338
Non-Operating Expense-Interest 1,230,680 1,025,006 1,521,300 517,250
Total Expenses $110,911,758 $74,303,930 $108,422,730 $112,183,588
Income Before Capital Contributions $4,126,742 $36,273,222 $5,097,429 ($23,266,772)
Total Capital Contributions 31,760,548 46,886,850 68,958,552 84,640,730
Change in Net Position 35,887,290 83,160,072 74,055,981 61,497,958
Beginning Net Position 626,637,016 620,971,490 655,137,322 729,786,303
Restatement-Governmental Accounting
S (41,552,816) - - -
Standards Board 75
Ending Net Position $620,971,490 $704,131,562 $729,193,303 $791,284,261
Net Investment in Capital Assets $623,307,342 $655,586,304 $675,000,000 $699,000,000
Restricted for Debt Service * 4,421,504 (271,370) - -
Unrestricted ** (6,757,356) 48,816,628 54,786,303 92,284,261
Total Net Position $620,971,490 $704,131,562 $729,786,303 $793,284,261
*The$4.4 million restricted for debt service for FY 2017-18 reflected the balance in the debt service reserve fund. Due to a refinancing
of 2009 bonds subsequently in September 2018,this debt service reserve was eliminated during FY 2018-19.
**Central San implemented Governmental Accounting Standards Board Pronouncement No.75 during FY 2017-18 which required a
restatement to reduce beginning Net Position by$41.6 million and resulted in a negative unrestricted Net Position balance of$6.8
million.
Net Position is classified into three categories: Net Investment in Capital Assets, Restricted for Debt
Service, and Unrestricted. The classification is based on availability or accessibility of the resource,
rather than its origin. Net position is a measure of the overall financial condition of Central San.
Over time, trends in net position provide indications of Central San's financial strength. Central San's
financial condition is affected by numerous factors including financial policies, rate and spending
decisions, and external factors such as overall economic trends affecting the service territory, new
regulatory requirements, and accounting pronouncements.
The largest portion of Central San's net position is the investment in capital assets (e.g., land
buildings, machinery, equipment, intangible assets, and sewer line infrastructure), less any related
debt used to acquire those assets that are still outstanding.
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The following figure shows historical Central San ad valorem property tax collections in comparison to
assessed value of taxable property in the District's service territory*. Figure 2 is provided to illustrate
the general correlation between increasing property values and Central San property tax revenues.
Figure 2 - Central San Ad Valorem Tax Collections
Central San Ad Valorem Tax Collections
5120,000 Contrasted Against Net Assessed Value of Taxable Property in Central San Service Territory 520
Amounts in millions
519
510x,000
Slfi
S14
580.900
s12
560.900 510
Ss
W'0 56
520,000 54
52
5o 50
FY20MO9 FY2009.10 FY2010-11 FY2011.12 FY2012-23 FY2013.14 M014-15 FY2015.16 fY2016-17 FY2017.19 FY2019-19 FY2019.20
Assmsed Value of TarabL-Property m Central San Service Territory(Leh Axo
-Central San Ad Valorem Tax Co ka ions iRght"
*The chart in the FY 2019-20 budget book showed Central San ad valorem property tax collections compared to Countywide property
valuations.
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Glossary
Accrual Basis of The basis of accounting under which transactions are recognized when they occur,
Accounting regardless of the timing of related cash flows. An example of accrual basis occurs when an
invoice is sent out for services: a receivable is booked and revenue is recorded even
though no cash has been received at the time the invoice is mailed to the customer. (See
Cash Basis of Accounting and Modified Accrual Basis of Accounting.)
Administration Central San-wide and department operations costs incurred by administration support
of Capital functions which are not directly charged to each capital project but allocated using a rate
applied to direct labor dollars.
Ad Valorem Tax Also referred to as Property Tax. A tax based on the assessed value of taxable property.
Central San receives a portion of the ad valorem taxes levied by Contra Costa County on
properties in the service area.
Amortization The action or process of gradually writing off the initial cost of an asset, the action or
process of reducing or paying off a debt with regular payments, or a period in which debt
is reduced or paid off by regular payments.
Adopted Budget A balanced financial plan for a specific period authorized by the Board for expenditure or
obligation.
Amended An adopted balanced financial plan reflecting budgetary transfers that occurred since
Budget adoption of the budget. The total budget amount must stay within the Board-approved
appropriation limit.
Appointment Indicates the character of a position. The following are examples of appointment types for
Type Central San: Regular, District Temporary, and Consultant.
Arbitrage Borrowing in one market (such as bonds) at one interest rate and investing in another
market (such as certificates of deposit) at a higher interest rate. Such activities are highly
restricted by the federal government, and any excess interest earned in this manner is not
tax-exempt and is subject to rebate to the Federal Government.
Asset An economic resource owned by the entity that is expected to benefit future operations.
Examples of assets are cash, investments, receivables, and capital or fixed assets.
Authorized A position created and established by the Board.
Position
Balanced Budget A budget in which approved funding sources (Le. revenues and authorized uses of excess
reserves) are equal or greater to expenditures.
Balance Sheet See Statement of Net Position, the current term.
Board of The five public officials elected at large to represent Central San's service area. Also
Directors known as the Board.
Bonds A written promise to pay a sum of money(principal or face value) at a future date
(maturity date) along with a periodic interest amount paid at a specified percentage of the
principal (interest rate). Bonds are typically used to finance long-term capital
improvements. Debt service payments are made to repay the bond holders. Central San's
goal is to limit debt-funded capital to no more than 60%of the total Capital Program over
a ten-year period.
Budget A plan of financial operation, embodying an estimate of proposed expenditures for a given
period (typically a fiscal year) and the proposed means of financing them (revenue
estimates).
Build America A type of municipal bond created under the American Recovery and Reinvestment Act of
Bonds (BABs) 2009. These bonds are sold at a taxable rate rather than a lower tax-exempt rate, and
Central San receives cash rebates from the U.S. Treasury to offset the higher interest cost.
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Terms and Definitions Used in the Budget Document 9W
Capacity Fee Also called Facility Capacity Fee, this is a charge paid at the time of connection to
compensate Central San for capital facilities that provide wastewater treatment (i.e.,
interceptors, primary and secondary treatment facilities, and wet weather treatment
plants)to new connections. See Connection Fees and Pumping Capacity Fees.
Capital Referring to the Sewer Construction Fund.
Capital Board-approved funding for capital reference projects for which relatively accurate time
Appropriation estimates can be made. Unspent appropriations carry forward to the next fiscal year.
Capital Assets Land, improvements to land, easements, buildings, building improvements,vehicles,
machinery, equipment, works of art and historical treasures, infrastructure, and all other
tangible or intangible assets that are used in operations and that have initial useful lives
extending beyond a single reporting period.
Capital Budget A financial plan for providing the purchase, construction, or rehabilitation of fixed assets
such as equipment, facilities, and systems. The capital budget is usually enacted as a part
of the complete annual budget, which includes both operating and capital outlays. The
capital budget should be based on a longer-term capital improvement program (CIP).
Capital Cash Projected cash disbursements for capital projects for a given time period. The estimated
Flow capital cash flow is used to determine the amount of revenue required and the rate
impacts, or the amount and timing of borrowings to meet the projected expenditure
needs for a given time period.
Capital Expenditures related to the purchase or construction of equipment, building structures,
Expenditures aqueducts, and water/sewer pipelines that have a useful life greater than one year and a
cost greater than $5,000.
Capital A plan for capital expenditures to be incurred each year over a fixed period of several
Improvement future years setting forth each capital project, identifying the expected beginning and
Plan (CIP) ending date for each project, the amount to be expended in each year, and the method of
financing those expenditures.
Capital Labor The portion of labor costs supporting the capital improvement program.
Cash Basis of A basis of accounting under which transactions are recognized only when cash changes
Accounting hands.
Cash Reserves Easily liquidated cash and investments available to meet operating, capital, self-insurance,
and debt service obligations. Reserves may be restricted or unrestricted. The 0&M and
Capital Funds Available are unrestricted cash reserves, made up of cash and investments
(see Funds Available and Funds Required).
Central Contra A joint powers authority utilized by Central San as a long-term financing vehicle for its
Costa Sanitary capital program.
District Facilities
Financing
Authority
(CCCSD FFA)
Certificates of A form of financing used by municipal or government entities which allows an individual to
Participation buy a share of the lease revenue of an agreement made by these entities.
(COP)
Comprehensive The CAFR is prepared at the close of each fiscal year to show the actual audited condition
Annual Financial of Central San's funds and serves as the official public record of Central San's financial
Report (CAFR) status and activities.
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BudgetTerms and Definitions Used in the Document
Contra Costa The retirement association for 16 local agencies in Contra Costa County, including the
County County itself. CCCERA's retirement benefit structure is based upon the County Employees
Employees' Retirement Law (CERL) of 1937, commonly referred to as the "37 Act."
Retirement
Association
(CCCERA)
CCF One hundred cubic feet, which equals 748 gallons or one unit.
Chart of An index of all the financial accounts in Central San's general ledger. Used as an
Accounts organizational tool that helps provide a digestible breakdown of all the financial transactions
Central San conducted during the fiscal year. At the highest level, the basic categories are
assets, liabilities, revenues, expenses and equity.
Civil Service The system used for the selection, examination, employment, classification, advancement,
System suspension, and discharge of employees. Applies only to Regular and Intermittent
employees or employees who have attained civil service status but are working in a position
excluded from the civil service.
Collection Pipelines and pumping stations that convey wastewater from customers to the treatment
System plant.
Commercial Short-term financing for capital projects.
Paper
Connection Fees A fee charged when new or additional Residential Unit Equivalents (RUE) connect to the
(Capacity Fees. sewer to contribute their fair share of service and facility costs. (See Capacity Fees and
Facility Capacity Pumping Capacity Fees).
Fees)
Consent Decree An agreement or settlement to resolve a dispute between two parties.
Cost of Service Equitably assigns cost responsibility to customers through rates and charges developed as
Study part of the study.
Credit Rating A rating assigned by a nationally recognized statistical rating agency, providing an indication
to creditors of the ability of Central San to meet its financial obligations when due. Central
San currently has credit ratings from two firms: Standard & Poor's and Moody's. A better
credit rating allows Central San to borrow at a lower cost than a less favorable credit rating.
Debt-Funded Expenditures for capital projects which are funded by bonds, state loans, or other debt.
Capital
Debt Policy A policy adopted by the Board that discusses when and how bonds and other forms of
indebtedness may be used by Central San.
Debt Service Expenditures for interest and principal repayment on bonds or other debt.
Debt Service The ratio of net revenues to debt service requirements, calculated in accordance with bond
Coverage documents. Central San's debt policy specifies that Central San will target a debt service
coverage ratio of at least 2.0x. Central San's bond covenants require at least 1.00x coverage
on a "gross revenue" basis and 1.25x on a net revenue basis.
Debt Service One of four sub-funds of the enterprise fund used to account for Central San's operations.
Fund This sub-fund accounts for activity associated with the payment of Central San's long-term
bonds and loans.
Defeasement Relieving the agency of a particular liability(such as a specific bond series) by refunding the
liability through an escrow or trust fund. Legally defeased liabilities do not need to be
appropriated each year as the trust fund is removed from the control of the agency.
(Central San defeased its 1994 debt using 1998 Revenue Refunding Bonds, and certain 2009
bonds with the 2018 Series Bonds)
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Terms • Definitions Used in the BudgetDocument
Deficit The excess of expenditures or expenses over revenues during a single accounting period.
Department A major organizational unit with overall managerial responsibility for functional programs.
Central San currently has three Departments: Administration, Engineering&Technical
Services, and Operations. Each Department is overseen by a Director and is comprised of
several separate and distinguishable Divisions.
Depreciation A reduction in the value of an asset with the passage of time, due in particular to wear and
tear.
Distribution Wastewater treatment plants, storage reservoirs, pumping plants, pipelines, and
System appurtenances that treat and transmit water to customers.
District Code A system of rules,which are compiled and arranged by a municipal corporation, and are
adopted and used to regulate the conduct of its inhabitants and government.
District Temporary staffing positions that are restricted to working no more than 12 months, do not
Temporary receive customary benefits, and do not have civil service status.
Division A major organizational unit of a Department responsible for providing different services to
the public as well as other divisions of Central San.
Effective Utility A framework developed in 2007 by the Environmental Protection Agency and water industry
Management leaders that indicates where effectively managed water/wastewater utilities should focus.
(EUM)
Encumbrance The obligated and unspent portion of a contingent liability established through a purchase
order that is chargeable to an account. It ceases to be an encumbrance when it is paid by
the recording of an invoice or a reduction of the purchase order's outstanding balance
occurs.
Pursuant to the law and generally accepted accounting principles, Central San reports its
Enterprise Fund financial activities in a consolidated enterprise fund in its annual financial statements. In
governmental accounting, an enterprise fund is a type of proprietary fund used to report
self-sustaining activities that derive the major portion of its revenue from user fees charged
to external users for goods or services. For financial reporting purposes, Enterprise funds
use the economic resources measurement focus and accrual basis of accounting used for
private-sector business enterprises and not-for-profit organizations. This contrasts from
"governmental funds" used by cities and counties, which use the current financial resources
measurement focus and modified accrual basis of accounting. Central San uses one
enterprise fund with four"sub-funds" (see below)to facilitate improved internal budgeting
and accounting.
Expenditure The payment of an obligation from Central San's cash amounts.
Facility Capacity See Connection Fees above.
Fees
Fiduciary Fund A fund in which assets are held by a governmental unit in a trustee capacity or as an agent
for individuals, private organizations, and/or other governmental units. There are four
types of fiduciary funds: Pension (and other employee benefit), Investment, Private-
Purpose and Agency.
Fiscal Year The 12-month period that begins on July 1 and ends on June 30 of the following year.
Full-Time An employee who works full time counts as 1 FTE.
Equivalent (FTE)
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BudgetTerms and Definitions Used in the Document
Fund An independent fiscal and accounting entity with a self-balancing set of accounts, recording
cash and/or resources together with all related liabilities, obligations, reserves, and equities
which are segregated for the purpose of carrying on specific activities or attaining certain
objectives. One type of government fund is an enterprise fund and is the only type of
government fund used by Central San.
Fund Balance Assets minus liabilities (also called net position).
(Net Position)
Funded Position Authorized position for which the Board has appropriated funding in a fiscal year.
Generally Generally Accepted Accounting Principles are the accounting rules that are required to be
Accepted followed by organizations in the U.S. These Principles are established by two organizations:
Accounting The Financial Accounting Standards Board for commercial and not-for-profit entities, and
Principles the Governmental Accounting Standards Board for governmental entities in the United
(GAAP) States.
Governmental Governmental Accounting Standards Board is the body that specifies the accounting rules
Accounting for governmental agencies in the U.S. The Board issues GASB statements that can require
Standards Board significant changes to an agency's financial reporting.
(GASB)
GASB 45 An accounting requirement published in 2004 by the Governmental Accounting Standards
Board (GASB)that addresses how the accounting and financial reporting for post-
employment benefits other than pensions (OPEB) should be performed. This Statement
establishes standards for the measurement, recognition, and display of OPEB
expense/expenditures and related liabilities (assets), note disclosures, and, if applicable,
required supplementary information (RSI) in the financial reports of state and local
governmental employers.
GASB 68 An accounting requirement of the Governmental Accounting Standards Board effective in
2014 that addresses Accounting and Financial Reporting for Pensions, which revises and
establishes new financial reporting requirements for most state and local governments that
provide their employees with pension benefits.
General Fund An account used to record funds that are not legally restricted for specified purposes, such
Reserves as those committed to repay obligations. General Fund Reserves provide for self-insurance
claims, unplanned revenue changes, working capital,workers' compensation, and
unanticipated contingencies.
General Manager The Chief Executive Officer of Central San, hired by the Board.
General When a government pledges its full faith and credit to the repayment of the bonds it
Obligations (GO) issues,those bonds are general obligation (GO) bonds. Sometimes,the term is also used
Bonds to refer to bonds which are to be repaid from taxes and other general revenues.
Government Government Finance Officers Association represents public finance officials throughout the
Finance Officers U.S. and Canada; it provides best practice guidance, consulting, networking opportunities,
Association publications, training programs, and recognition programs to its members.
(GFOA)
Goal The long-term continuing mission of a department, division, or program. Goals define the
strategic results to be achieved and therefore indicate the relevance, permanence, scope,
and effectiveness of that outcome.
Household The service and facility operated by Central San providing for the safe disposal of items
Hazardous Waste that, in the absence of this service, could be inappropriately disposed of through the sewer
Collection Facility system, risking pollution of the Bay.
(HHWCF)
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BudgetTerms and Definitions Used in the Document
Infrastructure The tangible physical components that ensure delivery of reliable, high-quality wastewater
service now and in the future. Typical components are reservoirs, pumping plants,
pipelines, and anaerobic digesters.
Internal Control The plan of organization and all other coordinated methods and procedures adopted to
safeguard assets; check the operations data; promote operational efficiency, economy,
and effectiveness; and encourage adherence to prescribed managerial policies that will
accomplish the objectives of the organization.
InfoMaster° GIS-based Asset Integrity Management and Capital Planning Tool
InfoWorks° New Sewer System Hydrodynamic Model
Key Performance Indicators with specific targets that measure how well Central San is progressing in
Indicators (KPI) achieving its goals under the Key Metrics of the Strategic Plan.
Liability A debt of the business; an amount owed to creditors, employees,government bodies, and
others; a claim against assets.
Modified Accrual The accrual basis of accounting adapted to the government fund type under which
Basis of revenues are recognized when they become both "measurable" and "available to finance
Accounting expenditures of the current period." Expenditures are generally recognized when the
related fund liability is incurred.
Modified Cash Income and expense accounting method that records revenue when cash is received and
Flow Basis records expenses when cash is paid.
Net Assets See Fund Balance.
One-Time A revenue that cannot reasonably be expected to continue, such as a single-purpose
Revenue federal grant, an interfund transfer, or use of a reserve. Continual use of one-time
revenues to balance the annual budget can indicate that the revenue base is not strong
enough to support current service levels.
Operating Board-approved funding for operating expenses. Unspent appropriations do not rollover
Appropriation to the next fiscal year.
Operating Budget A financial plan to fund ongoing operations costs incurred to operate Central San,
excluding the building of capital assets,which are included in the capital budget.
Operating Deficit When current expenditures exceed current revenues.
Operating The three units of Central San that carry out the mission of the agency: Administration,
Departments Engineering&Technical Services, and Operations.
Operating Labor The portion of Central San's labor costs supporting day-to-day operations.
Operating& One of four sub-funds of the enterprise fund used to account for Central San's operations.
Maintenance This sub-fund provides for the general operations, maintenance, and administration of
(O&M) Fund Central San. Also referred to as the "Running Expense"fund,which is the legal name of
this fund pursuant to the Sanitary Act of 1923.
Organization A group of staff organized into one unit or section working under a division or department.
This is the lowest level at which operating budgets are developed.
Other Post- In addition to pensions, many state and local governmental employers provide other post-
Employment employment benefits (OPEB) as part of the total compensation offered to attract and
Benefits (OPEB) retain the services of qualified employees. OPEB includes post-employment healthcare, as
well as other forms of post-employment benefits (e.g., life insurance)when provided
separately from a pension plan.
Other Purchased Category of expenses at the highest "grandparent" roll-up level for financial and budgetary
Services reporting purposes in the new chart of accounts. Includes services purchased not
connected to property. Includes "parent" roll-up expense categories such as: professional
services,technical services, and other services (i.e. administrative, other public agency
services, etc.).
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BudgetTerms and Definitions Used in the Document
Overhead Administrative Overhead and Non-Work Hours include indirect costs and the value of time
(Administrative off(holidays, sick leave, vacation, etc.). These costs are expressed as a percent of salary.
Overhead and For Central San accounting, salaries and benefits are separate from overhead (whereas
Non-Work Hours) consulting firms typically view employee benefits in "overhead"). Indirect costs are costs
that are incurred for a common or joint purpose benefiting more than one cost objective
or task and are not readily assignable.
Pay as You Go A term used to describe paying expenses as they are incurred, as opposed to pre-paying,
(or PAYGO) pre-funding, or setting money aside for future expenses. Used primarily to refer to the
strategy of paying for capital projects.
Public California's Public Employees' Pension Reform Act established a new less costly retirement
Employees' tier for employees newly hired or which did not have prior service with a reciprocal
Pension Reform retirement system prior to January 1, 2013.
Act (PEPRA)
Performance Specific quantitative measures of work performed within an activity or program (e.g., total
Measures miles of pipes cleaned). Also, a specific quantitative measure of results obtained through a
program or activity(e.g., reduced incidence of vandalism due to a new street lighting
program).
Program Broadly defined group of related reference projects combined to facilitate planning and
decision making.
Project or Project level identified in the CIP comprised of a discrete set of tasks that can be carried
Reference out independently but require coordination with other projects to ensure overall program
Project success. Appropriation requests and projected cash flows are authorized at this level.
Proposed Budget The recommended balanced financial plan for a specific period of time submitted for
consideration to the Board prior to the start of the Proposition 218 notification process.
Proprietary Fund Proprietary funds are used to account for a government's ongoing organizations and
activities that are similar to businesses found in the private sector. These funds are
considered self-supporting in that the services rendered by them are generally financed
through user charges or on a cost reimbursement basis. There are two types of
proprietary funds: Enterprise and Internal Service.
Pumping A component of connection fees for units that are located in areas tributary to one or
Capacity Fees more of Central San's pumping stations. (See Capacity Fees and Connection Fees.)
Purchased Category of expenses at the highest "grandparent" roll-up level for financial and
Property Services budgetary reporting purposes in the new chart of accounts. Includes services purchased
to operate, repair, maintain, and rent property owned or used by Central San. Includes
"parent" roll-up expense categories such as: repairs & maintenance, hauling&disposal,
security, rentals, cleaning and construction.
Rate (or Cash) Annual operations and maintenance expenses as well as the portion of the capital
Funded program that are funded from current revenues.
Expenditures
Rates Charges for services to customers that cover the costs of such services while allowing
Central San to remain reserve neutral.
Rate Stabilization Restricted-use reserves in the O&M and Sewer Construction Funds to help mitigate
Fund Reserve against sewer service charge increases that may otherwise be caused by unforeseen
volatility in operational expenses and/or revenues. Deposits to and from this restricted-
use reserve must be authorized by the Board. Amounts placed in these reserve accounts
are in excess of and separately distinguishable from minimum working capital reserves of
the O&M and Sewer Construction Funds specified by the Reserve Policy.
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BudgetTerms and Definitions Used in the Document
Regular Position Full-time, civil service position.
Fiscal Reserves A document outlining minimum reserve thresholds, identifying current and potential
Policy reserves, and explaining what reserves are, or will be used for.
Reserves See Cash Reserves.
Residential Unit A measure of sewage volume and strength equivalent to a typical residential household.
Equivalent(RUE)
Restricted Monies that, by action of the Board, State Law, or Bond Covenants, are required to be
Reserves spent on specific programs or held for specified purposes.
Restricted Monies that are legally earmarked for a specific use, as may be required by state law,
Revenue bond covenants, or grant requirements. For instance, capacity fees must be used within
the Sewer Construction Fund;the revenue cannot be transferred to O&M.
Revenue Monies received from rates, charges, and other sources. Revenues are used to pay for
expenditures.
Revenue Bonds Bonds (instruments and indebtedness) issued by the public sector to finance a facility or
equipment purchase, which, unlike general obligation bonds, are not backed by the full
faith and credit of the government. Instead,their revenues are generated from the
facility or equipment that they finance. Because they are state or local government
bonds,their interest earnings are typically tax-exempt under the Internal Revenue Code.
Revenue-Funded Expenditures on capital projects which are funded by revenues of Central San rather than
Capital by debt, grants, or other funds.
Running Expense Legal term used by the Sanitary District Action of 1923 (California Health & Safety Code
Fund section 6792)to fund to be used for ongoing running expenses of Sanitary Districts.
Synonymous with Operating& Maintenance (0&M) Fund.
Service Area The cities and areas served by Central San, including Lafayette, Orinda, Moraga, Danville,
Alamo, Walnut Creek, Pacheco, and portions of San Ramon and Martinez. Concord's and
Clayton's residents' and businesses' wastewater is collected by that City and treated by
Central San through a contractual arrangement;therefore, Concord and Clayton are
considered to be in Central San's service area. (Also called Service Territory).
Self-Insurance One of four sub-funds of the enterprise fund used to account for Central San's operations.
Fund This fund covers the cost of claims not covered by Central San's insurance coverage,the
cost of insurance premiums, interest earnings on the fund, and other associated costs.
Sewer One of four sub-funds of the enterprise fund used to account for Central San's operations.
Construction This sub-fund provides for the treatment plant and collection system renewal and
(Capital) Fund replacement expenditures, as well as office facilities renewal, vehicle and equipment
(S/C) replacement, information systems replacement, and miscellaneous capital expansion
needs.
Strategies, The key components of the Strategic Plan that specify the overall goals in the coming
Initiatives, years, consisting of the Strategies (highest level objectives), Initiatives (how the strategies
Metrics (SIM) will be achieved), and Metrics (measurements of progress).
Sinking Fund A method by which a government may set aside money over time to pay for a project or
obligation.
Staffing Plan The classes and positions that have been authorized by the Board and have been
determined necessary to carry out Central San functions. Central San's current staffing
level is based on a 2015 Organization and Staffing Plan, which resulted from a study
conducted by Raftelis Financial Consultants, recommending 290 FTE positions.
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BudgetTerms and Definitions Used in the Document
Strategic Plan The document that provides a blueprint for how Central San will respond to future
challenges and changing priorities over a two-year period. It outlines specific goals,
strategies, and objectives to guide Central San and establishes criteria to measure
progress.
Strategy Highest level of capital improvement activities, generally a grouping of related programs.
Represents key capital objectives as defined in the Mission Statement, Strategic Plan, and
Board policies and directives.
Statement of Net A statement reporting the present financial position of an entity by disclosing the value of
Assets (Balance its assets, liabilities, and equities as of a specified date. Assets minus liabilities equal fund
Sheet prior to balance (also called Net Assets).
GASB 34)
Sub-Funds As noted previously, Central San is considered one enterprise fund with four"sub-funds"
to facilitate improved internal budgeting and accounting. The sub-funds used and
included in this budget document are as follows:
• Running Expense Sub-Fund - (also referred to as Operations and Maintenance,
O&M, or R/E)
accounts for the general operations of Central San. Substantially accounts for all
operating revenues and expenses.
• Sewer Construction Sub-Fund - (also referred to as Capital or S/C)
accounts for non-operating revenues that are to be used for acquisition or
construction of plant, property, and equipment.
• Self-Insurance Sub-Fund - (also referred to as S/1)
accounts for interest earnings on cash balances and cash allocations from other
funds,temporary investments, and costs of insurance premiums and claims not
covered by Central San's insurance policies.
• Debt Service Sub-Fund -A sub-fund that accounts for activity associated with the
payment of Central San's long-term bonds and loans.
Subsidy Payment Relating to Build America Bonds (BABs),the subsidy payment represents funds from the
federal government to offset part of the interest cost paid by Central San as the issuer of
bonds. The BABs were issued in 2009 in lieu of traditional tax-exempt debt. Central San
pays a taxable rate of interest to investors, investors pay the Federal Government Income
Tax on that interest, and the federal government remits a specified percentage of the
interest payment to Central San.
Supplies& Category of expenses at the highest "grandparent" roll-up level for financial and
Materials budgetary reporting purposes in the new chart of accounts. Includes amounts paid for
items that are consumed or deteriorated through use or lose their identity through
fabrication or incorporation into different or more complex units or substances. Includes
"parent" roll-up expense categories such as: utilities &fuel, chemicals, and general
supplies.
Unfunded The difference between the actuarial accrued liability and the actuarial value of assets
Actuarial accumulated to finance that obligation. This is a term used in connection with pension
Accrued Liability plans or commitments to provide other post-employment benefits (OPEB)to employees.
(UAAL)
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BudgetTerms and Definitions Used in the Document
Unfunded Liability that has been incurred during the current or a prior year, that does not have to be
Liability paid until a future year, and for which reserves have not been set aside. This is similar to
a long-term debt in that it represents a legal commitment to pay at some time in the
future.
Vacancy Factor Recognizing that not all Funded Positions will be occupied throughout a fiscal year, this
allowance reduces budgeted funding to reflect such vacancies. While positions are
vacant, some costs are incurred on occasion for temporary staff or consulting resources,
reducing the vacancy factor.
Working Capital The capital of a business which is used in its day-to-day trading operations, calculated as
the current assets minus the current liabilities. The measure of working capital indicates
the relatively liquid portion of total enterprise fund capital, which constitutes a margin or
buffer for meeting obligations.
Working Capital The amount of working capital deemed to be unrestricted and liquid to meet current
Reserves demands. Central San must strive to maintain "working capital reserves" in excess of the
Minimum Working Capital Reserves (see definition above) specified in the Fiscal Reserves
Policy.
Unlike commonly defined "working capital",the calculation of"working capital reserves"
excludes certain current assets with strict purpose restrictions (i.e. Section 115 Prefunding
Pension Trust assets, Rate Stabilization Fund Reserve Account, etc.) and other current
assets that are not expected to be quickly converted to cash or consumed in operations
(i.e. parts and supplies, loans receivable). Generally,the calculation of working capital
reserves incorporates the following current assets and liabilities: unrestricted cash and
investments, receivables, prepaid expenses,trade payables.
Working Capital Central San's Fiscal Reserves Policy specifies minimum working capital reserve targets for
Reserve Target its O&M and Sewer Construction Funds. These policy targets are adjusted annually as
part of the budget adoption process and are based on each fund's respective operating
budget as follows:
• O&M Fund—Five months (41.7%) of gross operating expenses at the start of each
fiscal year.
• Sewer Construction Fund—One half(50%) of the annual Capital Improvement
Budget at the start of each fiscal year, excluding capital projects that are to be
funded with debt proceeds.
The working capital reserve target is used in the 10-year planning process as the amount
net liquidity that is needed on June 30 of any fiscal year to meet cash flow needs through
mid-December, when the first sewer service charge and property tax payments are
received from Contra Costa County. At the entity-wide aggregate level this includes
working capital reserves of the 0&M and Sewer Construction funds but excludes
restricted balances held in the Self-Insurance and Debt Service funds.
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Acronyms and Abbreviations
Acronyms and Abbreviations Used in the Budget Document
Board Board of Directors
CAD Contractual Assessment Districts, Computer Aided Design
CalPERS California Public Employees' Retirement System
CCERA Contra Costa County Employees' Retirement Association
CCTV Closed-Circuit TV
CCWD Contra Costa Water District
Central San Central Contra Costa Sanitary District
CEQA California Environmental Quality Act
CIB Capital Improvement Budget
CIP Capital Improvement Plan --covers 10 years
CIP Capital Improvement Program
CIPP Cured-in-Place Pipe
DERWA Dublin San Ramon Services District- East Bay Municipal Utility District Recycled Water
Authority
ERP Enterprise Resource Planning
FCD Flood Control and Water Conservation District
FY Fiscal Year-July 1 through June 30
GASB Government Accounting Standards Board
GFOA Government Finance Officers Association
HHW Household Hazardous Waste
IT Information Technology
MGD Million Gallons per Day
MPR Multi-Purpose Room
0&M Operations & Maintenance
OPEB Other Post-Employment Benefits
PLC Programmable Logic Controller
POB Plant Operations Building
POPEB Other Post-Employment Benefits
RAM PCAP J100 Risk Analysis and Management for Critical Asset Protection
SCB Solids Conditioning Building
SIF Self-Insurance Fund
SSC Sewer Service Charge
SSO Sanitary Sewer Overflow
Ten-Year CIP Ten-Year Capital Improvement Plan
UV Ultraviolet
VFD Variable Frequency Drives
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