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Presentation on Board Briefing Book FY 20-21 yn ATTACHMENT 3 r BOARD BRIEFING BOOK OVERVIEW 14 I1 i JANUARY 14, 2021 January 1 oard M BOARD BRIEFING BOOK TABLE OF CONTENTS Wy BOARD BRIEFING • i C#NrQ�LSwH2OAG Table of Contents 1 Strategic Plan COVID-19 Response Labor Negotiations Succession Plan for General Counsel Unfunded Actuarial Accrued Liability $ Cost of Service Enterprise Resource Planning Wholesale Contract with City of Concord Q Comprehensive Wastewater Master Plan 10 Solids handling Facilities Improvement Project and Associated State Revolving Fund 11 General Recycled Water Program Refinery Recycled Water Exchange Project DER4VA Temporary Wastewater Diversion Project 14 Diablo Country Club Satellite Water Recycling Facility Demonstration Project AgLantislCoCo Sustainable Farm Bay Area Clean Water Agencies 17 Eight Largest Water Agencies in the Bay Area *January 1 1202 al- oar eeting A7ew*pPacke - Pace 120 of 149 - CENTRALSAN rt Central1 STRATEGIC PLAN developed •-year strategic plans since 2014. - Strategic • I provides • - I direction • • Central , t achieve • I • mission. Each StrategicPlan document • I - components: IGoals, Strategies, Initiatives, Key Success Measures, and Key Metrics. The Goals are set by the Board to identify the key focus areas upon which staff should base the rest of the Strategic Plan. The GOAL7 GOAL1 StrategicIn framework assigns responsibilityI • accountability, AGILITYRND CUSTOMER AND ADAPTABILITY COMMUNITYmonitorsprogress, I • helps guide • - District-wide efforts I Preserve business Provide exceptional continuity during service and maintain pandemiceverrts anexcellem - budget. reputation disasters GOAL 6 GOAL 2The Administration Committee - - - quarterly INNOVATION ENVIRONMENTAL I AND OPTIMI7ATIpN STEWARQSHIP - SuccessMeasures I • - Metrics Explare new Meet regulatory technologies requirements for continuous2020-22OALS and promote improvement sustainability - Board, . — Administration Committee, receivesan annual report GOAL 5 GOAL 3 on progress r- , - • to achieving - Goals, as wellas the performance A - • , - RASTRUCTURE FISCAL in - — Metrics - — • to - targets. RESPONSIBILITY Maintain facilities GOAL 4 Manage finances January 1 Sped oard Meeting Agenda Packet- Page 121 of 149 and equipment to WORKFORCE wisely and be dependable, prudently resilient,and DEVELOPMENT long lasting Recruit,empower, and engage a highly trained and safe ce 20 COVID = 19 RESPONSE • In March 2020, in response to County and State health orders to limit the risk of COVID-19 transmission, the District took steps to modify its operations. • The health and safety of employees and the public remain the highest priority while the District continues to provide critical essential services. • COVID-19 Exposure Prevention Plan includes basic preventative measures, hazard assessment and controls, guidance for exposure reporting, and safe return-to-office protocols. This document is updated as needed to reflect the latest regulations, and staff is continually trained on the Plan. • Engineering Controls Plan identifies proposed workspace modifications to limit the spread of COVID-19. Staff has been implementing the controls identified in the Plan. • Cleaning/Disinfecting Schedule/Matrix defines trigger points based on capacity in employee workspaces and proposes cleaning schedules based on those trigger points. • The Board receives informational updates at every Board meeting, and, when a decision is needed, the item is agendized at a Committee and/or Board meeting. Mk- *Jaiivarji i ectal oar eeting CENTRALSAN 3 . LABOR NEGOTIATIONS • Negotiations will commence in 2021 for successor Memoranda of Understanding (MOUs) with the District's three recognized bargaining units: the Management Group, Management Support/Confidential Group (MS/CG), and Public Employees Union, Local #1 (Local #1 ). • The Management Group's current MOU expires on December 17, 2021 . • Local #1 and MS/CG MOU's expire on April 17, 2022. • The Board of Directors will need to make several decisions throughout the negotiations process. These tasks include but are not limited to the following: • Selecting a negotiator. • Conducting various studies and analyses (i.e. total compensation study). • Developing proposals. • Reviewing bargaining unit proposals. • Ratifying and adopting the MOUs. *Jahuarj 1 , 2021 Special Board Meeting CENTRALSAN 4 . SUCCESSION PLAN FOR COUNSEL FOR THE DISTRICT KENTON ALM • Counsel for the District Kenton L. Alm, Esq. has announced his intention to work through 2021 , with a mid-year update in 2021 as to his plans for 2022. • The District has been receiving general legal services and Counsel for the District services from Mr. Alm since 1986. Since his retirement from his firm, Meyers Nave, in 2019, Mr. Alm has been contracted directly by the District as Counsel for the District, in addition to a separate contract with Meyers Nave to provide backup services. • Mr. Alm will conduct a solicitation of interest within his personal contacts, focusing on a sole proprietor who would be exclusive to Central San (matching the current arrangement with Mr. Alm), a sole proprietor with more than one client, or a small law firm. • The Board will then be asked to consider two options: • Option 1 - Perform a recruitment and contract with an individual attorney as an independent contractor. • Option 2 - Issue a Request for Proposal (RFP) for legal counsel services and contract with an independent law firm. This would be similar to the District's previous contract with Meyers Nave when Mr. Alm was a principal in the firm. • The Board may then conduct interviews or appoint an Ad Hoc Committee to conduct these interviews, and the Board will enter a contract with the successful candidate. *January 1 , 2021 Special Board Meeting 10-01 CENTRAL 5 ■ UAAL • Significant progress has been made in recent years in bringing pension and OPEB liabilities under control. • Unfunded Pension liabilities have been brought down from a high of $142.5 million (56% funded) in 2012 to $70.7 million as of December CCCEM 315 2019 (and down to $60.4 million inclusive of $10.3 million of CmtraCosuCouMyEmployees assets in a Pension Prefunding Trust established by the Board in Retirerr,"A59o`Uic- 2017). • As of December 31 , 2019, Central San's pension funding status was brought to 84%, or 85.8% inclusive of assets totaling $10.3 million on June 30, 2020, the pension prefunding trust. • Funding for OPEB obligations was 87% (and a URAL of $10.4 million) as of June 30, 2020. This was substantially improved from 22% funded and a UAAL of $78 million as of 2012. • Favorable market returns, normal amortization, and additional discretionary payments have helped. Transition to CaIPERs health helped reduce OPEB UAAL by $35 million in one year (2018 to 019). ` WON Arco *Jahuarj 1 , 2021 Special Board Meeting CENTRAL 6 COST OF SERVICE CENTRSANITARY DISTRICT 01V RA CESTA • Four-year rate plan covers FY2019-20 to FY 2022-23 and is based on a Wastewater Cost of Service 2015 cost of service study updated in 2019. 4.75% increases for the Study 3rd and 4th year of that plan. ro<<m.yai,aoie • In April prior to the implementation of the rate, Board will consider whether to with the adopted rate, or a lesser amount. • Impact to District: SSC rates calculated in accordance with cost-of- service principles and implemented consistent with the requirements of Proposition 218 fund most Central San's costs. • Impact to Customers: The Sewer Service Charge currently generates approximately $100 million towards the District's $182 million budget. Charges to Concord contribute another $31 million. The Cost- of-Service study ensures that each customer class pays their fair share of the District's costs based on their usage of the system. • Impact to Employees: Relevant staff are involved in the process for determining Central San's revenue requirement as part of the financial planning process. Rates are proposed for Board consideration/approval sed on assumptions in the cost-of-service study. 'A I *Jahuarj 1 , 202 eeting CENTRALSAN 7 . ENTERPRISE RESOURCE PLANNING • ERP project commenced in August 2019 and will be during the end of this fiscal year. Module Completed Target Core Human Resources(Phase I—Core System, Onboarding) March 2020 A L Finance(Core Finance,Cash Management,Fixed Assets,General Ledger,Payables, September 2020 ENTERPRISE Project Financials,Receivables,Procurement,Inventory, P-Card, and Travel) RESOURCE PLANNING Permitting&Community Development jafffiafy 2024 CLOUD March 2021 HR Benefits January 2021 Payroll January 2021 Budget February 2021 Goals/Performance,and Learning Management System April 2021 • Oracle Cloud system provides platform that should meet our needs to many years to come. *Jahuarj i 12021 Special Board Meeting CENTRALSAN 8 . WHOLESALE CONTRACT WITH CITY CONCORD • The City of Concord owned and operated its own . . wastewater treatment plant at the current Six Flags • Waterworld site in downtown Concord ; it also collected . :-h L.111- and treated Clayton sewer flows. .. _- • Since 1974, City of Concord (and town of Clayton) and , Central San have a wholesale service agreement Centrak fan Service Area • FY 2019-20 Concord paid $27 M for O&M , Capital and WholesaI Treatrrsent Are-a HHW. No contribution to collection system • Billing based as percentage of sewer flow vs Central San net influent flow, checked every month . _ 10 *January 1 , 2021 Special Board Meeting CENTRAL 9 . COMPREHENSIVE WASTEWATER MASTER PLAN • Central San has developed a Ten-Year Capital Improvement Plan CENTRAL SAN 000L (Ten-Year CIP) for capital facilities and financing needs. The Ten- %4wSAND: .T?AHQr+o 4�aclTff TINGTin{.£NJG{ixuw.;N,TV.ariO'i,l fM:-:{}Nsnfr!' Year CIP covers the period starting on July 1 , 2020 and ending . . June 30, 2030. It incorporates the recommendations from the June EXECUTIVE SUMRY 2017 Comprehensive Wastewater Master Plan (CWMP). The Ten- Year CIP is updated every year. It includes planning-level cost estimates for proposed projects and projections for the various M.ar,n.4wuiraa .s.w a. 4dr ra _A�a.s,,. .- [.we 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. *Jahuarj 1 12021 Special Board Meeting CENTRAL 10 . SOLIDs HANDLING FAcILITIES AND AssocIATED STATE REVOLVING FUND • Sludge Blending and Mixing • Dewatering and Cake Pumping ' • Ash Handling Equipment µ' • Air Emissions Control Equipment , • � � MHF Improvements � • Seismic Improvements for both the building and MHFs • Electrical and Control Systems Improvements Staff has applied for a $173. 1 Million SRF loan Project expected to bid early 2021 and take up to four years *Jahuarj 1 12021 Special Board Meeting CENTRALSAN ' PHiehurp 11 . GENERAL RW PROGRAM '•� !Martnnez` q -.i Concord �. r4iPlc,+s.ini i lull-" f CiWon • Recycled Treatment facilities constructed in late 70's `cl-t ok Qr6nda Lafayette • In 1996 Central San and CCWD reached an agreement ARemo for Zone 1 (14 miles of recycled water lines MOr$A� "7 Darrrllte • Central San also owns and operates a recycled water distribution system called "Zone 1 " ��' L ;�Cvnpa CpaL Winer 0..tn I A $en Ramon ;�EraS BFY Myrna rsl ytddy D5inp C/�+�■ p cccso sa.+�aro, • In 2019, Central San sold 213.9 million gallons of recycled water • Wastewater Treatment Plant uses about 1 .5 MGD of recycled water r • Auto Truck Fill Station a • Residential Fill Station January 14, 2021 Special Board Meeting Agenda Packet- Page 131 of 149 13 ZONE 1 RW SERVICE AREA �t f. �� CCVlp Pgef■re ` OETA IL Pr4oeedEwupigian AREA % MarlinexWaierSewkeArea !Recycled Waler C ustomen :a:¢a hAk-aies yearly cDr*mrb cn) I '� >t Madam R io 00 E>t41ino CuceonLar • OR R ff10VQ + ,tP1w4 `� hl4riCrlF+■01llnfr riroxcm s f,■ru0wac xrl�, rlrfY W 'a wrri ,< � S � 4SIIl.ILi 111[{pIL-011C i.! M14N'�i1Y]•yRl LYIELIL JwMIR Yi! N.IILMMrGM f'ICT4�.• .. T■IOLTLL {YFf OdI■Y' lY.li2ulrl. �� MlRY■T� rC•9 X,Irr.L /o■Y fii0■� r e* er14L L IrpLlNryi4G ■ Pr•sun•.u: cn xw><' { Ltf¢4 [Y {+kn144}F1� hW�llW.} � �1 uit�lil[For BtriY3h} G.f LC N•1G. - _ a..r. eLY41N4Mi {Yfili Pi PhIcewr GPr[M1iy1r GR�[LV@R6 KFrih I.YVFTTWR.Bk- paWr•�fA�[Lwi uxfn rr�c r.t.wn ri.L YLR. � �lrM41 RiVL fa.co L•:e■L1 0.111 pq hili!!+* -.PL'%!l reaorrcl r„_,tY +aLlt+x.a 40 n,-1 * i"r.�,.t� r{Ir.LtoRPWLLSrrop.L w4rh1 wryer + a11P IThnLw ' r.�P.n�/14L ilyyjrr�, `T� —_---_ ME GMA 710— {rY ■ eolr[durrie I ■ I■ R I rrt#+ ■ a . rtrt . ■ f � s f r ■ CENTRALSAN # ` s� � cccso Recycled waver sratem _ ' *January i 12021 Special Board Meetin a A enda Packet- Pae 132 of 149 RCENTALSAN 12 . REFINERY RECYCLED WATER EXCHANGE PROJECT • The Water Exchange Project seeks to produce and convey recycled water to the nearby PBF (formerly Shell) and Marathon (formerly Tesoro) refineries in Martinez. Central San would produce the recycled water and Contra Costa Water District (CCWD) would provide it to their refinery customers. • In exchange, the raw Delta water supply the refineries are currently using would be freed up and conveyed to Santa Clara Valley Water District (Valley Water) via CCWD's proposed Los Vaqueros 2 Expansion Project (LVE2) Facilities. The LVE2 Facilities include a nine-mile pipeline, called the Transfer-Bethany pipeline, that will need to be in place for Valley Water to receive this new water supply. *Jahuarji i , 202 a al aar eeting CENTRALSAN 13 . DERWA TEMPORARY WATER DIVERSION PROJECT • After careful consideration and evaluation by Central San staff and the Real Estate, Environmental, and Planning Committee, on August 16, 2018, the following Guiding Principles were adopted by Central San's Board to set forth the general terms under which Central San would enter into an agreement with DERWA: • Guiding Principle 1 : No Adverse Financial Impact to Central San • Guiding Principle 2: No Adverse Financial Impact to the Cities of Concord and Clayton • Guiding Principle 3: Consistency with Central San's Municipal Bond Covenants • Guiding Principle 4: Consistency with Proposition 218 >; • Guiding Principle 5: Community Acceptance `P'lb9 I.t1'� 11 k 74 RI5 • Guiding Principle 6: Temporary Nature of the Project ,. an r s • Guiding Principle 7: Mitigation of Technical and � .> Operational Impacts Guiding Principle 8: Benefit to Central San Customers iding Principle 9: Facilitate a Sustainable Solution for the Region's Water Supply Shortage *January 1 , 2021 Special Board Meeting CENTRALSAN 14 . DIABLO COUNTY CLUB SATELLITE WATER RECYCLING FACILITY DEMONSTRATION PROJECT DCC's SWRF proposed project would include PROPOSED PROJECT construction of the following. DIABLO COUNTRY CLUB SWRF "VEND • Wastewater diversion structure a; mine a[fiiwF6fb61. - _ M • Small diversion pump station liWn6l6ldi6f1dM6[ N �� . • Force main pipeline • Combined biological filtration treatment facility • Disinfection facility • Odor control • Recycled water pump station and related appurtenances • Expanded storage ponds ew irrigation system 17 WNW_ ' *Jahuarj 1 , 2021 Special- oard- -eeting CENTRAL 15. AGLANTIS / COCO SUSTAINABLE `-` FARM Y{yq 4 r # �. Central San Board of Directors approved the lease agreement for - the CoCo San Sustainable Farm on April 17, 2014 with a 10-year term that expires on April 16, 2024. The rent, which includes the cost of recycled water, is $1 per year. The terms of the Lease provide for an Annual Report and an updated Business Plan to be submitted annually by April 1 st of each year. ,L - A • One of the primary purposes of the CoCo San Sustainable Farm is to grow fresh produce and donate or sell it for a low cost to the Contra Costa/Solano Food Bank, local non-profits who distribute food to poor and/or local schools and students needing food. Y January 14,20 j pecial Board Meeting Agenda Pack of 149 18 16 . BACWA • BACWA is a Joint powers agency, formed in 1984, under theBAY ARF: A �t;&W WAEFa California Government Code. The BACWA membership A -athC I I I includes the many municipalities and special districts that provide sanitary sewer services to more than seven million people in the nine-county Bay Area. BACWA is dedicated to working with its members, state and federal regulatory agencies, and non-governmental organizations to improve and enhance the San Francisco Bay environment. BACWA provides technical expertise, financial support, and a public utility perspective to ensure that regulations affecting its embers are well-informed , thoughtful , and effective. *Jahuarj i , 2021 Special Board Meeting CENTRALSAN There are eight major water supply agencies in the Bay Area: • Alameda County Water District (ACWD) • Bay Area Water Supply and Conservation Agency (BAWSCA) • Contra Costa Water District (CCWD) • East Bay Municipal Utility District (EBMUD) • Marin Municipal Water District (MMWD) • San Francisco Public Utilities Commission (SFPUC) • Santa Clara Valley Water District (Valley Water) • Zone 7 Water Agency (Zone 7) • Two of these water agencies operate within Central San's service area: CCWD and EBMUD. Two other retail 17 , EIGHT water agencies, the City of Martinez and the Dublin San Ramon Services District (DSRSD) . BAY Imported sources serve a substantial portion of the Bay Area's water demands and include the following: • State Water Project AREA Central Valley Project • SFPUC Regional Water System (RWS): SFPUC's RWS serves retail and wholesale customers (including AGENCIESBAWSCA member agencies) • Mokelumne River Watershed • Recycled water represents a local supply of water that water agencies could leverage to reduce reliance on imported water and boost the resilience of the Bay Area's water supply January 14, 2021 Special Board Meeting Agenda Packet- Page 138 of 149 20