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FY 2021 - 22 BUDGET
BOARD OF DIRECTORS
` - a
J1
Top Row: Barbara D. Hackett, Mariah N. Lauritzen, Michael R. McGill
Bottom Row: Tad J. Pilecki (Board President), David R. Williams
]EXECUTIVE MANAGEMENT
Roger S.Bailey,General Manager Steve McDonald,Director of operations
Jean-Marc Petit,Director of Kenton Alm,Counsel for the District
Engineering and Technical Services Katie Young,Secretary of the District
Philip Leiper, Director of Finance and
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 http://www.centralsan.arg
TO..
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-dqmb� N�{I 1
UKTW COh"A COSTA UMTAII CdWI
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
i Provide a safe and
I healthful environment
4
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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 01, 2020
0Aa&P-,' P- ;Ofxl�
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, 2020. 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...........................................................................................................................................................17
OrganizationalStructure.................................................................................................................................................24
Budgeting Calendar, Process,and Spending Authorities................................................................................................25
StrategicPlan Summary..................................................................................................................................................30
Financial Overview
FinancialOverview..........................................................................................................................................................35
Financial Planning Policies
FiscalPlanning Policies....................................................................................................................................................37
FiscalReserves Policy......................................................................................................................................................37
Basisfor Budgeting.........................................................................................................................................................38
Debt Management and Continuing Disclosure Policy....................................................................................................42
InvestmentPolicy...........................................................................................................................................................42
CurrentFinancial Plan.....................................................................................................................................................43
Operations and Maintenance.........................................................................................................................................44
Capital.............................................................................................................................................................................44
Financial Summary
FinancialSummary..........................................................................................................................................................45
Sourcesof Funds.............................................................................................................................................................46
SewerService Charge.....................................................................................................................................................53
Useof Funds...................................................................................................................................................................56
Operations and Maintenance Budget Overview............................................................................................................57
Variances in Operations and Maintenance Budget........................................................................................................60
Operations and Maintenance Budget by Operating Department..................................................................................65
Historical Variances in the Operations and Maintenance Spending..............................................................................66
Staffing,Salaries,and Benefits .......................................................................................................................................67
BudgetedFull Time Equivalents......................................................................................................................................68
StaffingChanges.............................................................................................................................................................69
CapitalImprovement Budget..........................................................................................................................................70
Impact of Capital Improvement Budget on Ongoing Operations and Maintenance Budget.........................................73
ReserveProjections........................................................................................................................................................73
DebtService....................................................................................................................................................................77
Long-Term Spending Trend.............................................................................................................................................78
Operating Departments
OperatingDepartments..................................................................................................................................................81
AdministrationDepartment...........................................................................................................................................82
Engineering and Technical Services Department.........................................................................................................125
OperationsDepartment................................................................................................................................................149
Self-Insurance Program
Self-Insurance Program ................................................................................................................................................173
Capital Improvement Program
Capital Improvement Program.....................................................................................................................................181
Ten-Year Capital Improvement Plan
Ten-Year Capital Improvement Plan.............................................................................................................................283
Debt Program
DebtProgram................................................................................................................................................................299
Supplemental Financial Information
Supplemental Financial Information ............................................................................................................................305
Glossary and Acronyms
Terms, Definitions,Acronyms, and Abbreviations Used in Budget Document............................................................313
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General Manager's Message
Honorable Members of the Board of Directors:
I am pleased to present the Central Contra Costa Sanitary District's (Central San's) Fiscal Year (FY)
2021-22 combined budget. As we celebrate our 75th year, this budget represents our 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.
Over the past 75 years, Central San has grown along with the communities we serve. Today we collect
and clean more than 13 billion gallons of wastewater every year for nearly half a million residents and
more than 3,000 businesses. We also provide exceptional customer service through innovative
recycled water and household hazardous waste (HHW) programs, as well as award-winning public
outreach and student educational programs. These services will continue to receive the support they
need in this budget.
Through proactive maintenance, we've extended the lifespan of our facilities and equipment to make
every dollar work harder for our customers. However, parts of our system have reached the end of
their useful lives, and significant capital investments are needed to ensure we can continue to provide
the level of service our customers are accustomed to. This budget reflects these critical infrastructure
needs, including renovations to our solids handling and recycled water production and storage
facilities. We also are investing in upgrades to our pumping stations and replacing aging neighborhood
sewer pipes to ensure reliable, trouble-free service for decades to come.
Innovation and Essential Service
This has been a year like no other in Central San's history. The COVID-19 pandemic has underscored
the centrality of public health to our communities, our economy, and our way of life. We've had to
make significant changes in how we work to help keep our employees and customers healthy and safe.
Yet, we've risen to the challenge, providing uninterrupted wastewater collection and cleaning services
for our customers throughout this critical time.
Through ingenuity and innovation, we developed new ways
to meet our customers' needs, even when we can't meet
them face to face. We implemented enhanced safety
protocols and contactless procedures for our permit counter _
and HHW facilities and launched new virtual public/school
education programs. Through our participation in COVID-19
regional monitoring and research efforts, we're supporting — -
the emerging science of wastewater-based epidemiology,
which is helping scientists and public health officials more
effectively track and combat the virus and prepare for future
pandemics.
C�Nnui �1-
This year's unprecedented events have impacted budgets
j
and revenues for special districts across the state, and
r � .
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Central San is no exception. We're pursuing federal relief to address the emergency expenditures
necessitated by the pandemic. We also recognize the challenges many of our customers are facing,
which is why we waived collecting the rate increase which went into effect July 1, 2020, for residential
and commercial customers, and refunded the sewer service charge for schools for the period when
they were closed. We will continue to monitor the economic impacts of the pandemic and be ready to
respond.
A Year of Milestones
Despite the challenges, we continue to make headway on our strategic goals. We completed
implementation of our new Enterprise Resource Planning (ERP) system, which will streamline
processes, enhance functionality, and provide better reporting tools to help Central San manage our
resources. We also implemented numerous infrastructure projects in alignment with our 20-year
master plan, including:
• Replaced 8 miles of aging neighborhood sewer pipes
"� • Began work on filter plant and clearwell improvements to
ensure the continued reliability of our recycled water
Y system and advance our vision to provide expanded
recycled water capacity
+ • Launched a pilot program using state-of-the-art
technology to assess the condition of our largest sewers
•Completed a series of critical inspections and
improvements to our outfall—the 6-foot diameter, 3.5-mile
k pipe that carries clean, treated water from our plant to
Suisun Bay
•Completed upgrades to the Emergency Sludge Loadout
Facility, a critical step in the planned improvements to our
' solids handling facility
To cap off these successes, we were again honored with a Peak Performance Platinum Award, marking
23 consecutive years 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.
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Accomplishments within our Strategic Plan Goals
As we strive to provide exceptional service at reasonable rates, our two-year Strategic Plan serves as a
guidepost to keep us focused on our vision and goals. Below are some of Central San's major
accomplishments under each of the seven goals in the Strategic Plan:
' ■ CUSTOMER AND COMMUNITY
• Developed digital learning Pipe C30AL
F AGILITY AND CUSTIDIVIERAND
Protectors program, serving 5,800 � ' COMMUNFTY
BILITYPreserve business Provide exceptional
students with ahands-on, science 7 contiinuity during service and maintain
-
F pandemic events an excellent
F, or major natural reputation
based curriculum that was disasters
r F GOAL X6 GOAL 2
presented via online learning INNXCYVATIONENVIRONMENTAL
AND OPTIMIZATION STEWARDSHIP
L Meet regulatory
formats technologies I Fiscal Year requirements
• Implemented a Customer Relief for continuous 2021-22 and promote
improvement sustainability
Program and a Non-ResidentialGOAL GOAL3
GDALS
Capacity Fee Installment PaymentUMRE FSC
RELIABILITY RESPONSIBILITY
Program for customers to address M a intain facilities GOAL,
Managefinances
d equipment to wisely and
the impacts on the economy from
resilientand DEVELOPMENT
COVID-19 long lasting �D�M ig
and engage a highly
a safe
trained ds
• Created a Septic to Sewer (S2S)
Financing Program as a two-year
pilot to encourage single-family houses to connect to nearby sewer mains
• Launched a new drone program to capture photographs and videos of facilities for
education, outreach, and operational assessments, including securing necessary
licenses and authorizations from the Federal Aviation Administration
• Oversaw approximately 40,000 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
• Continued to provide essential wastewater treatment and collection services
without interruption during the COVID-19 pandemic
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■ ■ ENVIRONMENTAL STEWARDSHIP
• Achieved 23 consecutive years of 100% compliance with Central San's National
Pollutant Discharge Elimination System Permit (NPDES), governing wastewater
discharge
• Reduced sanitary sewer overflows to a potential new record low of 18 in
FY 2020-21, up to March 31
• Cleaned 478 miles and televised 81 miles of sanitary sewers, completing 10,604
sewer maintenance work orders on schedule 99.5% of the time
• Collected approximately 2,600,000 pounds of household hazardous waste
• Collected approximately 5,000 pounds of pharmaceuticals
• Actively engaged in regulatory issues through involvement with Bay Area Clean
Water Agencies (BACWA) and the California Special Districts Association (CSDA)
Legislative Committee
• Distributed approximately 130 million gallons of recycled water to businesses and
residents
• Completed construction for the Dublin San Ramon Services District-East Bay
Municipal Utility District Recycled Water Authority (DERWA) temporary
wastewater diversion facility in San Ramon to produce more recycled water and
augment regional water supply
• Completed the procurement process and obtained Board approval for a Power
Purchase Agreement (PPA)for a 1.75-megawatt solar energy project that exceeds the
cost-effectiveness criteria in Central San's Energy Policy and completed the
environmental review process for the project
FISCAL RESPONSIBILITY
• Achieved 20 consecutive years of receiving the Government Finance Officers
Association (GFOA) Certificate of Achievement for Excellence in Financial
Reporting
• Awarded the GFOA Distinguished Budget Presentation Award for the FY 2019-20
Budget for the third consecutive year after applying for the first time three years
ago
• Completed annual Benchmarking Study based on the American Water Works
Association (AWWA) Utility Benchmarking framework, soliciting involvement from 34
California agencies
• Rolled out a completely restructured chart of accounts based on best practice
guidance issued by the GFOA, allowing for greatly improved reporting
functionalities
WORKFORCE DEVELOPMENT
• Launched Employee Recognition Events program to allow managers to
acknowledge extraordinary achievements
• Developed an Innovation Recognition Program, which included the first annual
Innovations Fair, showcasing and celebrating innovative employees going above
and beyond to improve and optimize their work
• Held virtual Q&As on Central San-wide policies and procedures such as bi-weekly
pay transition and COVID-19 Exposure Prevention Plan
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• Continued the third cycle of the BOOST Mentorship Program
• Had a safe year with zero recordable incidents, for an employee injury and illness
lost time incident rate of 0.0
GOAL FIVE INFRASTRUCTURE RELIABILITY
• Received Best Asset Management Program 2020 award from Uptime Magazine
• Renovated sewers in Danville, Martinez, Walnut Creek, Lafayette, Orinda, and other
nearby communities
• Completed several critical infrastructure improvement projects at the treatment
plant, including the Treatment Plant Piping Renovations;Treatment Plant Control
Systems Input/Output(1/0) Replacement, Phase 9; Outfall Improvements, Phase 7;
Emergency Sludge Loading Building; and Concrete and Mechanical Renovations
Project
• Completed comprehensive condition assessments for the Steam and Aeration
Blower Systems Renovations Project and developed business case evaluations to
scope future capital projects
• Completed migration of equipment from outdated data center to newly
constructed and modern data center
INNOVATION AND OPTIMIZATION
• Implemented the new fully integrated cloud-based enterprise resource planning
(ERP) system's Financials, Procurement, Contracts, Projects, Core HR, Employee
Self-Service, Time & Labor, Absences, Benefits, Payroll, Budgeting, Goals &
Performance, and Employee Learning modules, which converted many business
workflows into streamlined paperless processes
• Held quarterly meetings of the Central San Smart Steering Committee and
incorporated projects into the Technology Strategic Plan
• Implemented Central San's first Ethernet controlled variable frequency drives,
resulting in simplified wiring and availability of power monitoring and diagnostic
data
AGILITY AND ADAPTABILITY
• Developed, implemented, and enforced a COVID-19 Exposure Prevention Plan
■ • Allowed employees to work from home where possible based on their job duties
and ability to remote work effectively
• Commissioned an Engineering Controls Plan, developed Return to Office
Protocols, and installed all recommended improvements for a safe workplace
• Participated in and launched wastewater surveillance efforts with Stanford, UC
Berkeley, Contra Costa Health Services, and Department of Human and Health
Services
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Embracing the Future
As we look toward our next 75 years, we're pursuing new technologies and innovations to help us
make 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. Through prudent capital investments, we're ensuring our
system remains reliable and resilient, meets new regulatory requirements, protects the environment,
and is ready for the future.
The priorities identified in this FY 2021-22 Budget will allow us to build upon our successes and meet
our goals for FY 2021-22 as outlined in our two-year Strategic Plan—the guidepost for our budgeting
process. I want to thank the Board of Directors (Board) for providing the vision, resources, and support
necessary to achieve these goals and address current and future challenges. I also want to thank our
staff for working so diligently to develop this budget, ensuring we are financially well-positioned to
meet our goals.
We recognize that our customers rely on us for a basic but essential service, and we look forward to
continuing to provide them with the highest levels of reliability, service, and value.
Y
1
(Roger S. Bailey
neral Manager
I
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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 146 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.
sulsu"fray
Sewage collection and wastewater
.� treatment; household hazardous
Martinez waste (HHW) disposal
Concord ■
PleasantWastewater treatment and HHW
Hill Clayton
disposal for residents in Concord and
Walnut Clayton by contract
E Creek
2a Lafayette
Orinda HHW disposal only
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
Y • 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 2.6 million pounds of household hazardous waste per year,
and reuses or recycles about 90% of those materials
• Collects more than 5,000 pounds of unwanted medications per
year
• Achieves an average 3.7 out of 4.0 customer satisfaction rating for
sewer emergency response (as of Q2 in FY 2020-21)
• 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 almost 75 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, the Cities of 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 %ChangWeq
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%
2020 342,100 141,500 483,600 -2.15%
Population by Community (2010, 2019, 2020)
As of January 1.20 As of January 1,2019 As of January 1,2020
Clayton 10,936 11,653 11,337
Concord 124,442 129,889 130,143
Danville 43,110 45,270 43,876
Lafayette 24,206 26,327 25,604
Martinez 21,078 21,745 20,913
Moraga 14,701 16,939 16,946
Orinda 17,799 19,475 19,009
Pleasant Hill 33,384 35,055 34,267
San Ramon 51,099 69,143 68,824
Walnut Creek 65,443 70,121 70,860
Unincorporated Contra 48,557 48,658
Costa County" 41,850
Total Service Area 454,755 494,275 483,629
Contra Costa County Total 1,073,055 1,155,879 1,156,530
* 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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Household Income by Community (2019)
HouseholdCommunity Average Income
Alamo* $239,545
Clyde * $82,944
Clayton ** $157,768
Concord ** $89,564
Danville $160,808
Lafayette $178,889
Martinez
$107,328
Moraga $140,378
Orinda
$223,217
Pacheco * $72,383
Pleasant Hill $118,947
San Ramon $160,783
Walnut Creek $105,948
Service Area Total (Excluding Concord** &
Clayton**),Weighted by Population $142,181
Source: US Census Data (https://www.census.gov/quickfacts)
* Included in"Unincorporated Contra Costa County"population line item in previous table
** Not included in service territory,Central San provides wastewater treatment and HHW services through a
wholesale contract.
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Ten Largest Customers by Sewer Service Charge (FY 2019-20)
Customer • . Operating Revenue
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 $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 (2020)
User Group Accounts* 2019-20 Sewer Service Charge %of Total
Billings
Residential 114,993 $82,615,906 81%
Mixed Use 426 $6,610,852 6%
Office 712 $2,852,440 3%
Hotel/Motel 23 $1,410,709 1%
Food Service 265 $1,188,731 1%
Government 190 $1,121,289 1%
Schools 173 $1,010,889 1%
Businesses 383 $808,415 1%
Recreation/Entertainment 138 $843,247 1%
Automotive/Car Wash 244 $737,895 1%
Market/Supermarket 39 $567,290 1%
Industrial/Permitted 11 $497,443 1%
All Other User Groups 491 $2,630,906 2%
Partial Year Charges $347,497
Prior Year Adjustments ($4,698)
Total 117,998 $103,238,861 100%
*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 (2020)
Employers Estimated Employees 2020
of Total County Employment
Chevron Corporation 10,000+ 2.11%
St. Mary's College 1,000-4,999 0.63%
Bio-Rad Laboratories 1,000-4,999 0.63%
Job Connections 1,000-4,999 0.63%
John Muir Medical Center 1,000-4,999 0.63%
Kaiser Permanente 1,000-4,999 0. 63%
La Raza Market 1,000-4,999 0.64%
Martinez Medical Offices 1,000-4,999 0. 64%
USS-POSCO Industries 1,000-4,999 0. 64%
All Others 92.82%
In 2020:439,500
Source:County of Contra Costa,California,California Annual Financial Report for June 30,2020,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 11%
2012 1,079,093 $66,772,041,000 $61,878 9.4%
2013 1,096,310 $67,290,115,000 $61,435 7.3%
2014 1,110,971 $71,164,468,000 $64,056 6.0%
2015 1,126,027 $77,914,957,000 $69,195 4.9%
2016 1,138,645 $82,204,425,000 $72,195 4.9%
2017 1,147,439 $87,810,279,000 $76,527 4.1%
2018 1,150,215 $94,900,003,000 $82,506 3.5%
2019 1,155,879 N/A N/A 3.2%
2020 1,153,561 N/A N/A 13.4%
* 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 in 2010 future dates are as of June.
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Organizational Structure
Central San is governed by a Board of Directors whose five members were elected at-large on a non-
partisan basis and serve a four-year term. Commencing with the 2022 election the District will
transition to area-based elections.
Under area-based elections, the
District has been divided into five
separate election areas called
"divisions" and voters residing in each Board of
area will select one representative to Directors
serve on the Board.
General
The Board appoints the General Man I ager
Manager, the Counsel for the District, Director of
and the Secretary of the District. Operatluns
Central San is organized into three
departments: Administration (which
includes HR and Secretary of the Environmental
District), Engineering and Technical Repulatory
Services, and Operations. Compliance
Planning&
Central San currently has 293 budgeted Development
full-time employees. Two additional Services
positions were authorized by the Board
during FY 2019-20 which were
expected to be transitional for a period
of not more than two years, and both _®
such positions have been removed as
of April 2021. The budget for FY 2021-
22 is proposed at 291 positions.
This team of employees is led by a General Manager, three 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.
r
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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 approved
rates for FY 2020-21; however on May 7, 2020, the Board voted to not collect the incremental portion
of the rate that was scheduled for FY 2020-21, thereby continuing the FY 2019-20 rates for FY 2020-21.
The public hearing for FY 2021-22 was conducted on April 15, 2021, where the Board continued the
current course of the rate increase scheduled to take effect for FY 2021-22.
May 20, 2021 Regular Board Meeting Agenda Packet2.5Page 133 of 457
Page 50 of 349
A diagram summarizing the budget and rate development process is provided below.
Identify Key Financial Issues
Place Prior Year Place Pri,
on Tax Roll
Workshops,*Conduct Board of Directors NOVEMBER-JANUARY
DeveloperCommittee Meetings -Refine Issues
171de tify B
*Conduct Capacity& ..
Outreach Develop Financial Projections
-Conduct*Conduct Public Hearings
Developer*Update Capacity&
Workshop-Adopt Final Budget Fees,Rates,and Charges
Prepare.�Receive Board of Directors'
irection
• ... I
Proposition 2 18
L_Outreach
A calendar of key intersecting events during the process for the FY 2021-22 budget is provided below,
comprised of activities from two of the three aforementioned critical business areas of the planning
process: Budget and Rate Setting. Strategic Planning activities were limited to data collection and
reporting on the approved FYs 2020-22 strategic plan. Development related to the FYs 2022-24
strategic plan will take place during early 2022.
Key Strategic Plan, Budget, and Rate Setting Events for FY 2021-22 Budget
Date Budget Rate Setting
January 2021 N/A N/A
February 2021 Departments/divisions develop and submit N/A
operating budget proposals
General Manager reviews operating budget March 25: Board Rate Workshop
March 2021 with departments/divisions (Review of Financial Plan including
updates to the Ten-Year CIP and CIB)
Draft operating budget finalized with
departments/divisions Board Meeting to review potential
April 2021 changes to previously adopted rates for
Draft Ten-Year Capital Improvement Plan (CIP) FY 2021-22
finalized by Department of Engineering and
Technical Services
Draft Operating Budget presented to the
Finance Committee and the Board
May 2021 Draft Capital Improvement Budget(CIB)and N/A
Ten-Year CIP presented to the Engineering and
Operations Committee and Board
Public Hearing on adoption of Capacity
June 2021 Public Hearing on adoption of final budget and Developer-Related Fees, Rates,and
Charges
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Page 51 of 349
Public participation is invited throughout all aspects of these planning processes. Documents are
published on the Central San website for public review. Public input is taken at Committee and Board
meetings, financial workshops, and public hearings on these matters.
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).
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 following tables:
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Page 52 of 349
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 $200,000 or Less Greater than$200,000
Enter Into
Agreements Technical Consulting Services $200,000 or Less Greater than$200,000
Professional Engineering Services $200,000 or Less Greater than$200,000
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 None No limit/Sewer Construction
Budgets and Contingency Account 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 53 of 349
Contracting Authority Limits
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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Page 54 of 349
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, outline 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 FY 2020-21 strategic
accomplishments and performance (based on information available during the publication of this book
in spring 2021), as well as objectives for FY 2021-22. The FY 2019-20 performance against the metrics
included in each of the divisions' sections is measured against the targets included in 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:
May 20, 2021 Regular Board Meeting Agenda Packet3-OPage 138 of 457
.34. • i •
Product Quality- Produces "fit for purpose" water that meets or exceeds full
compliance with regulatory and reliability requirements and is consistent with
customer, public health, ecological, and economic needs.
Customer Satisfaction - Provides reliable, responsive, and affordable services in line
with explicit, customer-derived service levels.
Employee and Leadership Development- Recruits and retains a workforce that is
: =t
competent, motivated,adaptive, and safety focused.
Operational Optimization - Ensures ongoing,timely, cost-effective, reliable,and
sustainable performance improvements in all facets of its operations in service to
public health and environmental protection.
Financial Viability - Understands the full life-cycle cost of utility operations and the
value of water resources.
Infrastructure Strategy and Performance - Understands the condition of and costs
associated with critical infrastructure assets.
lip 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
interests, and regulatory bodies for service levels, rate structures, operating budgets,
capital improvement programs,and risk management decisions.
Page 56 of 349
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:
Response7:ey Budget imary L_ mo-ris
I 71
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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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
OINFRASTRUCTURE RELIABILITY
Maintain facilities and equipment to be dependable,resilient,and long lasting
Aging infrastructure and Make investments in capital improvements Major projects include the Solids
climate resiliency and internal resources to deliver on increased Handling Facility Improvements and
levels of capital spending Filter Plant and Clearwell Improvements
PSystem
INNOVATION AND OPTIMIZATION
Explore new technologies for continuous improvement
ptimization 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
'' AGILITY AND ADAPTABILITY
Preserve business continuity during pandemic events or major natural disasters
T7 li
The COVID-19 pandemic Continue to maintain a safe working Continue to update and enforce the
environment for employees and the public COVID-19 Exposure Prevention Plan
while providing essential services
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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. 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 2021-22, 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. 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 2021-22 is $2.5 million,
unchanged from the amount budgeted in FY 2020-21. The debt service payment 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 require 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 pursuant to GASB 84, commencing with FY 2021-22, this
budgetary "other fund" is no longer reported in Central San's comprehensive annual
financial report 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 (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 2019-20. 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, 2021 and June 30, 2022.
• 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, and an addition contribution of$2.15 million of available monies from the from
FY 2019-20 financial close. 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
comprehensive annual financial report 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 outflow over the course of a fiscal year (July 1 through June 30)
excluding physical and intangible assets such as depreciation expense.
Central San's accounts and transactions are tracked on a full accrual basis, which is the basis of
accounting under 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
financial reporting such as the comprehensive annual financial report, 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 financial reporting such as the comprehensive annual financial report,
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 earned and both Recognized when earned and
measurable and available. measurable
Expenses Recognized when liability has been Recognized when liability has been
incurred,with some exceptions incurred
Depreciation and amortization Excluded Included
Capital outlays Included Excluded
Pension/OPEB expense Excluded Included
Pension/OPEB plan contributions Included Excluded
Debt service interest payments Recognized when due and payable Recognized and accrued in the period
it was incurred
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.
Regulatory Accounting
In April 2021, the Board adopted BP 046— Regulatory Accounting, which, in accordance with GASB 62,
allows for the treatment of specified expenditures as either operating or capitalizable expenditures.
The policy addresses the situation where certain expenditures connected with programs that will
provide benefits to Central San customers over a multi-year period may be amortized or recovered
through rates over a multi-year period, rather than as 0&M expenditures recognized in a single period.
The policy provides for transparency in requiring that items to be so treated are disclosed to the Board,
with an assessment of the rate impact. Expenditures in this proposed budget which are to be subject
to regulatory accounting treatment are:
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Budgetary Treatment Budgetary Treatment
Expenditure Absent BIP 046 with BP 04.
1. Extraordinary waste Recovered through O&M costs in The expenditures are budgeted in the capital
hauling costs during the the years incurred. The project budget for DP 7348. These costs are
construction of the Solids timeline anticipates expenditures of budgeted in FY 2023-24 and FY 2024-25 and
Handling Facility up to$10 million over the period the will be recovered through rates over the
Improvements Project furnaces are not operating,which is term of the funding used for the project,
(District Project(DP) expected to cover FY 2023-24 and FY which is anticipated to be State Revolving
7348) 2024-25 (with cost impact of $5 Fund (SRF) loans,amortized over 20 years
million in each FY). upon completion of the project.
If the costs were instead recovered through
0&M,SSC per single family residence would
need to be higher by$31.25 ($5 million/
$160,000)annually for each of the two
years. Instead, recovered over a 20-year
bond,SSC is higher by only$3.46 per year
over that period,spreading the costs over
the term of the SRF loan.
2. Development of a five- Recovered through O&M costs in The expenditures of$1,137,700 are
year IT Master Plan (DP the years incurred, FY 2021-22. budgeted in the capital budget for DP 8240.
8240, part of IT
Development) Rate impact will depend on the ultimate
funding source for this project during FY
2021-22.
Currently the budget anticipates use of SSC
or ad valorem taxes collected in FY 2021-22.
However,staff is also pursuing a bond
issuance that would replace SSC funding for
FY 2021-22 capital projects with debt. If
debt is used, debt service amortization over
an approximately 7 to 9-year period is
anticipated.
3. Enhanced security Recovered through O&M costs in Expenditures of$100,000 per year growing
staffing while significant the years incurred, FY 2021-22 at 3%annually over the next five FYs are
Capital Projects are through FY 2025-2026. budgeted in the capital budget for DP 7354—
underway(DP 7348 and Treatment Plant Security
others) Improvements. These costs are budgeted in
FY 2021-22 through FY 2025-2026.
Rate impact will depend on the ultimate
funding source for this project during FY
2021-22.
Currently,the budget anticipates use of SSC
or ad valorem taxes collected in FY 2021-
22. However,staff is also pursuing a bond
issuance that would replace SSC funding for
FY 2021-22 capital projects with debt. If
debt is used, debt service amortization over
an approximately 7 to 9-year period is
anticipated.
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Implementation of a New Chart of Accounts
This budget, as with FY 2020-21, has been prepared to reflect the updated chart of accounts
implemented as part of the Oracle Cloud ERP project which went live in FY 2020-21. The updated chart
of accounts was 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 updated chart of accounts also reflects best practice guidance published by the
Government Finance Officers Association (GFOA). For this reason, there may be differences in
expenditure line items and groupings in this book when comparing budgeted expenditures from FY
2020-21 on to prior fiscal years (FY 2019-20 and prior). Examples of changes arising from the
implementation of the new chart of accounts include the following:
Type of Change Examples
Movement of particular • Board of Directors 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.
• Other Post Employment Benefit(OPEB)costs were previously
reported entirely under"retiree expenditures". Commencing
with the new chart of accounts budgeted OPEB costs are being
split between the actuarially determined normal cost and
unfunded actuarial accrued liability(UAAL)cost components.
The normal cost component is reported under the "Benefits"
expense category,while the UAAL cost component is reported
under the"Retirees" expense category.
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
Department 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 and Organizational Development
Division.
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Debt Management and Continuing Disclosure Policy
In August 2017, the Board adopted 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, 2020, total outstanding debt
associated with infrastructure improvements was $19.447 million, which was reduced to $17.707
million on September 1, 2020 through the annual debt service principal payment. As noted in the
"Debt" section of this document, borrowings under a SRF loan are anticipated to begin in FY 2021-22
for the Solids Handling Facilities Improvements Project. The debt service schedule for this loan has not
yet been finalized, so an amortization schedule is not provided in this document. However, no
repayments will be due in FY 2021-22. Staff is also working on a mid-year 2021 bond offering which
may fund a portion of FY 2021-22's capital expenditures. Debt service on this contemplated offering
would replace other budgeted costs. A budget amendment to reflect the impact of this offering may
be proposed after the issuance is complete.
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 0&M, plus tax revenues/total debt service) and 1.25x (gross revenues excluding
capacity fees and after payment of O&M plus tax revenues/total debt service) are adhered to.
Central San's Debt Service Coverage Ratio is strong and benefits from minimal debt service because of
the District's generally practiced pay-as-you-go philosophy for funding capital expenditures. 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, BP No. 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.
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The investment policy is presented to the Board annually, and its priorities are safety, liquidity, and
yield. The policy addresses issues such as permitted investments, banks and dealers, maturities,
diversification, risk, delegation of authority, prudence, controls, reporting, and performance
evaluation.
The GASB 45 (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 March 31, 2021, the GASB 45 (OPEB) Trust had a balance of$80.9
million, an increase from $69.8 million on June 30, 2020.
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 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 O&M Budget
FY 2020-21 $1,250,000 Budgeted funds in O&M Budget
FY 2021-22 $1,250,000 Budgeted funds in 0&M Budget
As of March 31, 2021, the Pension Prefunding Trust had a balance of$12.2 million, an increase from
$10.3 million on June 30, 2020.
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 projecting rates for the first ten years are the
primary focus.
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 25, 2021 Board Financial
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Planning Workshop. The updated financial plan for FY 2021-22 estimated O&M spending at $94.9
million and capital spending at $106.9 million. The original financial plan adopted as the basis for the
4-year rate increase estimated FY 2021-22 0&M spending at $93.9 million and capital spending at
$110.4 million. The updated financial plan was based on the following assumptions:
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
assumptions in the memoranda of understanding with the bargaining units and agreements with
unrepresented employees.
• Other key assumptions were summarized in the March 25, 2021 financial workshop presentation
available on the Central San website.
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 $907.5 million to $926.8 million), with
the updated cost of the Solids Handling Facilities Improvements Project, then inflated by 3%, to $951
million, so that the total is stated in 2021 dollars. The amount was then updated by reshaping cash
flows over the ten-year period to a total of$939.7 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 2021-22 capital budget and the Ten-Year CIP.
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Financial Summary
The FY 2021-22 Budget provides the resources necessary to advance the Strategic Plan and meet the
challenges Central San faces as it continues to provide high quality service while replacing aging
infrastructure. The FY 2021-22 budget also complies with the Financial Policies discussed in the
previous section.
Central San's total budget for FY 2021-22 is $ 202.7 million, representing an increase of$20.4 million,
or 11.2%,compared to the FY 2020-21 budget of$182.4 million, which changes by individual spending
category as follows:
• The FY 2021-22 O&M Budget is $91.0 million, an increase of$0.3 million from the
FY 2020-21 budget of$90.7 million.
• The main driver of the increase in the total budget is a 22.6% increase in sewer construction
investment, from $88.0 million in FY 2020-21 to $108.0 million in FY 2021-22.
• Debt service is essentially unchanged at approximately$2.5 million, consistent with the 2018 bond
amortization schedule.
• The Self-Insurance Fund (SIF) spending budgeted at $1.3 million for the costs of premiums and
estimated losses based on historical trends and represents a slight increase from the $1.2 million
funding level of the FY 2020-21 budget.
Table 1 - FY 2021-22 Total Budget
BudgetExpenditures Trend
Fund FY 2019-20 FY 2019-20 FY 2020-21 FY 2021-22 Budgetto Percent
Budget Actual Budget Budget
Operations and $87,584,775 $81,702,214 $90,666,338 $90,974,103 $307,765 0.3%
Maintenance(0&M)
Sewer Construction 66,176,000 53,662,584 88,024,000 107,955,000 19,931,000 22.6%
Debt Service 2,982,415 2,749,851 2,517,605 2,511,227 (6,378) -0.3%
Self-Insurance 1,073,700 1,153,147 1,153,500 1,285,000 131,500 11.4%
Total Budget $157,816,890 $139,267,796 $182,361,443 $202,725,330 $20,363,887 11.2%
Other Uses of Funds:
CIB Funding Ratio at
90% $ $- $- ($10,795,500)
Contribution to 1,349,926 23,549,844 -
Reserves $842,965
Contribution to Rate Included in _ $5,169,332
Stabilization above
Total Funding Uses $159,166,815 $162,817,640 $182,361,443 $197,942,128
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Sources of Funds
The sources of funds (revenues) for FY 2021-22 are shown in Figure 1. A comparison of the major
revenue sources for FY 2021-22, the current year, and prior years is shown in Figure 2.
Figure 1 — Total Funding Sources — FY 2021-22 Proposed Budget
FY 2021-22 Total Budgeted Funding Sources of$197,942,128
Household Hazardous
Loan Proceeds, Waste, $977,000
$34,120,000
Recycled Water,
$432,000
Other Sources,
$4,187,000
Capacity Fees(Gravity
and Pumped Zone),
$5,950,000 Sewer Service Charge,
$107,943,987
Tax Revenue,
$19,831,227
City of Concord,
$24,500,914
Figure 2 - Total Funding Sources - Three-Year Budget Comparison
FY 2019-20 FY 2020-21 FY 2021-22
$159,166,815 $182,361,443 $197,942,128
Sources of Funds
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000 , son _i m
Sewer Service City of Concord Property Tax Capacity Fees All Other Loan Proceeds Draw from
Charge Revenue Sources Reserves(see
Table 14)
■FY 2019-20 Budget ■FY 2020-21 Budget ■FY 2021-22 Budget
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The SSC is the largest source of revenue for FY 2021-22 at $107.9 million, followed by the
City of Concord at $24.5 million, ad valorem property tax at $19.8 million, and Capacity Fees at
$6.0 million. All other sources of revenue are $5.6 million. Non-revenue sources of funds for FY
2021-22 include expected borrowing of$34.12 million, 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 an 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 review and adjust the allocation of costs to individual customer classes based on
their impact to the sewer system. For residential customers, separate rates are charged to single
family and multi-family residences. Non-residential customers are typically billed based on their
water consumption and business type. For budgetary purposes, the forecast for the SSC is based
on prior year revenue, estimated growth derived from anticipated residential construction, and
predicted changes in non-residential water consumption. Water consumption volumes for
commercial customers was reduced in 2020, which is the basis for FY 2021-22 SSC billing, affecting
revenues by approximately $4.3 million. The financial plan assumes a recovery in water volumes
over a four-year period.
• 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.
Under the current arrangement, the City of Concord reimburses Central San once a year on a fiscal
year basis. Following the close of the fiscal year, the Finance Division submits an invoice to the City
of Concord which is generally paid by August/September.
• 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 (Gravity and Pumped Zone)—Gravity and Pumped Zone Capacity 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. Pumped Zone Fees are collected specifically to cover pumping infrastructure costs
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for new developments or expansion in areas where pump stations are required to move
wastewater to the Central San treatment plant. These fees are budgeted by multiplying the
incremental Pumped Zone Fee times the number of development units anticipated to be subject to
such fees.
• Household Hazardous Waste (HHW) Reimbursement—Central San provides a facility where
residents and businesses within the service area may dispose of specified hazardous wastes.
Additionally, residents from specified cities (Concord, Clayton, San Ramon, and parts of Martinez
served by the Mt. View Sanitary District) also have the right to use the facility, and these Cities pay
a contractually agreed amount for this service. The amounts due are invoiced by the Finance
Division 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 the
Finance Division 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 Program 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 the Finance Division 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 Investment Income—This is based on forecast cash levels multiplied by estimated interest
rates over the course of the fiscal year. Interest rates are anticipated to remain low in
FY 2021-22.
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 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
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SIF, other revenue includes an allocation from the 0&M fund in an amount necessary to
replenish the SIF to the targeted level after projected expenses in the budget year.
• Use of Reserves— Use of, or contribution to, reserves is calculated separately 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 of$34.12 million to fund the Capital
Improvement Budget for FY 2021-22 is shown in Table 13. Central San is currently exploring a mid-
2021 bond offering which may be used to fund a large portion of FY 2021-22 (and potentially
FY 2020-21) capital expenditures. If this occurs, a budget amendment to reflect this change would
be adopted.
Tables 2a, 2b, 2c, 2d below show the overall funding sources of Central San and how those funding
sources are applied to each sub-fund for proposed FY 2021-22 and budgeted and projected FY 2020-21
and actual FY 2019-20 respectively.
Table 2a—Allocation of Funds — FY 2021-22 Budget
Funding Sources Fund 10 Fund 20 Fund 30 Fund 40 Total
FY 2021-22 Budget Self- V Debt Service FY 2021-22
Insurance Budget
Sewer Service Charge $72,259,337 $34,108,232 $1,576,419 $- $107,943,987
City of Concord 151800,000 8,700,914 - - 24,500,914
Tax Revenue - 17,320,000 - 2,511,227 19,831,227
Capacity Fees-Gravity - 5,799,000 - - 5,799,000
Capacity Fees-Pumped Zone - 151,000 - - 151,000
HHW Reimbursement 977,000 - - - 977,000
Recycled Water 432,000 - - - 432,000
Other Revenue Sources Including:
Permit& Inspection Fees 1,882,400 - - - 1,882,400
Lease Rental Income 715,000 - - - 715,000
Stormwater/Pollution Prevention 390,000 - - - 390,000
Investment Income 180,000 319,000 50,000 - 549,000
Developer Fees - 297,600 - - 297,600
Other 328,000 25,000 - 353,000
Total Other Revenue Sources $3,495,400 $616,600 $75,000 $- $4,187,000
Subtotal Funding Sources prior to
$92,963,737 $66,695,746 $1,651,419 $2,511,227 $163,822,128
Reserve Draws and Loan Proceeds
Use of Reserves(See Table 14) $- $- $- $- $_
State Revolving Fund (SRF) Loan
- 34,120,000 - - 34,120,000
Proceeds
Total Funding Sources $92,963,737 $100,815,746 $1,651,419 $2,511,227 $197,942,128
* Fund numbers correspond to the fund designations in the new chart of accounts implemented in FY 2020-21.
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Table 2b -Allocation of Funds - FY 2020-21 Budget
r 91 Fund 10 Fund 20 Fund 30 Fund 40
Funding Sources
FY 2020-21 Budgef---
Sewer Service Charge $44,527,762 $56,673,402 $- $- $101,201,164
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-Gravity - 6,000,000 - - 6,000,000
Capacity Fees-Pumped Zone - 262,000 - - 262,000
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
Investment Income 190,000 293,500 112,050 - 595,550
Developer Fees - 484,000 - - 484,000
Other 409,000 - 470,000 - 879,000
Total Other Revenue Sources $3,660,400 $777,500 $582,050 $- $5,019,950
Subtotal Funding Sources prior to $65,432,162 $94,952,902 $582,050 $2,517,605 $163,484,719
Reserve Draws and Loan Proceeds
Use of(or Contribution to) Reserves $25,234,176 $(9,928,902) $571,450 $- $15,876,724
State Revolving Fund(SRF)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
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Table 2c -Allocation of Funds - FY 2020-21 Projected
Fund 10 Fund 20 Fund 30 Fund 40
Funding Sources-==ME
FY 2020-21 Projected
Sewer Service Charge $44,821,000 $57,045,001 $- $- $101,866,001
City of Concord 15,400,000 16,000,000 - - 31,400,000
Tax Revenue - 16,978,000 - 2,517,605 19,495,605
Capacity Fees-Gravity - 5,630,000 - - 5,630,000
Capacity Fees-Pumped Zone - 147,000 - - 147,000
HHW Reimbursement 936,000 - - - 936,000
Recycled Water 420,000 - - 420,000
Other Revenue Sources Including:
Permit&Inspection Fees 1,897,400 - - - 1,897,400
Lease Rental Income 737,000 - - - 737,000
Stormwater/Pollution Prevention 325,000 - - - 325,000
Investment Income 160,000 310,000 50,000 - 520,000
Developer Fees - 288,600 - - 288,600
Other 300,472 - - - 300,472
Total Other Revenue Sources $3,419,872 $598,600 $50,000 $- $4,068,472
Subtotal Funding Sources prior to $64,996,872 $96,398,601 $50,000 $2,517,605 $163,963,078
Reserve Draws and Loan Proceeds
Use of(or Contribution to) Reserves $20,064,843 $- $625,000 $- $20,689,843
State Revolving Fund(SRF)Loan
Proceeds
Total Funding Sources $85,061,716 $96,398,601 $675,000 $2,517,605 $184,652,922
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Table 2d -Allocation of Funds - FY 2019-20 Actual
Fund 10 Fund 20 Fund 30 Fund 40
FY 2019-20 Actual—
. .
Sewer Service Charge $70,408,903 $32,829,958 $- $- $103,238,861
City of Concord 14,923,591 11,393,000 - - 26,316,591
Tax Revenue - 16,127,444 - 2,749,442 18,876,886
Capacity Fees-Gravity - 6,738,095 - - 6,738,095
Capacity Fees-Pumped Zone - 286,186 - - 286,186
HHW Reimbursement 883,919 - - - 883,919
Recycled Water 503,622 - - 503,622
Other Revenue Sources Including:
Permit&Inspection Fees 1,915,184 - - - 1,915,184
Lease Rental Income 713,683 - - - 713,683
Stormwater/Pollution Prevention 356,755 - - - 356,755
Investment Income 636,685 996,041 141,741 - 1,774,466
Developer Fees - 419,195 - - 419,195
Other 628,405 - 21,035 - 649,440
Total Other Revenue Sources $4,250,712 $1,415,236 $162,776 $- $5,828,723
Subtotal Funding Sources prior to $90,970,747 $68,789,918 $162,776 $2,749,442 $162,672,882
Reserve Draws and Loan Proceeds
Use of Reserves $- $- $144,757 $- $144,757
State Revolving Fund (SRF) Loan
Proceeds
Total Funding Sources $90,970,747 $68,789,918 $307,533 $2,749,442 $162,817,639
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Sewer Service Charge
Tables 3 and 4 show the SSC for FY 2021-22 compared to the FY 2020-21 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, four financial
workshops have been held (on November 4, 2019; March 12, 2020; December 17, 2020; and
March 25, 2021) to discuss Central San's financial outlook and to receive Board direction on key
financial planning matters. As committed to in the adoption of the four-year rate ordinance, on April
15, 2021, the Board deliberated on whether to adjust the previously adopted rates for FY 2021-22. The
Board did not adopt changes, allowing the rates to go into effect for July 2021.
Table 3 —Approved Annual SSC-Residential
Customer Type FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21* FY 2021-22
$629 legal
Single Family Residence $503 $530 $567 $598 rate,while 598 $660
collected
Other Residences—
Apartments, $596 legal
rate,while
Condominiums, Duplexes, $487 $513 $549 $566 $566 $625
Second Living Units, Mobile
collected
Homes
Effective Date 07/01/16 07/01/17 07/01/18 7/01/19 7/01/20 07/01/21
* On May 7,2020 the Board voted to not collect the incremental rate increase for FY 2020-21,while leaving in place the entire rate
structure adopted by Ordinance No.304,effectively creating a rate increase holiday for FY 2021-22.
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. In FY 2020-21, only the
rates from the prior year were collected, providing a rate increase holiday for FY 2020-21.
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Table 4 -Approved Annual SSC-Non-Residential
GroupUser Combined i
Strength Limits
Low Non-residential uses not listed Up to 350 mg/I $6.23 $6.56 $6.87
below(no food service)
Food service without Type 1 hood,
Medium-Low shared water meter with less than 351 to 700 mg/I $6.72 $8.05 $8.43
50%food service
Shared water meter with 50%or 701 to
Medium $9.59 $10.09 $10.57
greater food service 1,000 mg/I
Food service with Type 1 hood,
supermarkets, hotels and motels 1,001 to
Medium-High $10.70 $11.26 $11.79
with food service,shared water 1,300 mg/I
meters with bakery
Mortuaries, bakeries, restaurants
with grinders or emulsifiers, Greater than
High $14.18 $14.92 $15.63
breweries with Best Management 1,300 mg/I
Practices permit
Minimum Annual
$566.00 $596.00 $625.00
Charge
*On May 7,2020 the Board voted to not collect the incremental rate increase for Fiscal Year 2020-21,while leaving in place the entire
rate structure adopted by Ordinance No.304,effectively creating a rate increase holiday for FY 2020-21.
Customer Type IFY 2019-20 FY 2020-21 IFY 2021-22*
Schools
Schools-Daycare, Preschool, University(per hundred
$6.23 $6.56 $6.87
cubic feet)
Schools-Elementary(per student) $7.43 $7.82 $8.19
Schools-Intermediate and High School (per student) $14.68 $15.45 $16.18
Industrial Permit(including food processing)
Wastewater Flow(per hundred cubic feet) $4.82 $5.08 $5.32
Biological Oxygen Demand (BOD) (per 1,000 pounds) $1,275.00 $1,342.00 $1,406.00
Total Suspended Solids(TSS)(per 1,000 pounds) $666.00 $701.00 $734.00
Fixed $93.69 $98.61 $103.29
Special Discharge Permits and Contractual Agreements Determined Determined Determined
Individually Individually Individually
*On May 7,2020 the Board voted to not collect the incremental rate increase for Fiscal Year 2020-21,while leaving in place the entire
rate structure adopted by Ordinance No.304,effectively creating a rate increase holiday for FY 2020-21.
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Below is a diagram of the five customer classes showing the combined strength limits and the
representative businesses that are contained within each category:
Low Medium Medium Medium High
Low High
Up to 350 mg/1 351 to 700 mg/ 701 to 1,000 miIl 1,001 to 1,300 mg/I Over 1,300 mg/I
DelicatessensStd.Commercial <50%Food Supermarkets Bakeries
(No Food Service)
Churches Restaurants Restaurants with
>50%Food
Daycare,
Preschool,University with Breweries
Automotive,Aviation, Mixed-Use with Mortuaries
Marine Coffee Shops Bakeries
Table 5 indicates the total collected SSC and how such funds are allocated to the sub-funds.
The allocation of the SSC to Capital decreases from 56.0% in FY 2020-21 to 31.6% in FY 2021-22.
The FY 2020-21 allocation of SSC to Capital was temporarily higher than typical, due to the large
reserve balance in the O&M fund that was drawn down in FY 2020-21 to cover 0&M
expenditures. The allocation of the SSC to 0&M increases from 44.0% in FY 2020-21 to 66.9%
in FY 2021-22, which is more in line with the historical 0&M to Capital fund split. Table 5 also
shows a direct allocation of SSC to the self-insurance fund to restore the self-insurance fund
balance to the required $6.5 million level. This is a change in presentation, as in prior years this
replenishment was routed through the O&M fund as an expenditure.
Table 5 —Allocation of SSC
IFY 2019-20 M&6. IFY 2019-20 % FY 2020-21 FY 2021-22 % Change
Budget .1 __ Actual Budget L Budget
To O&M $69,090,870 68.2% $70,408,903 68.2% $44,527,7621 44.0% $72,259,337 66.9% $27,731,575
To Capital 32,219,130 31.8% 32,829,958 31.8% 56,673,402 56.0% 34,108,232 31.6% (22,565,170)
To Self-
1,576,419 1.5% 1,576,419
Insurance
Total $101,310,000 100.0% $103,238,861 100.0% ° °
Collected $101,201,164 100.0/ $107,943,987 100.0/ $6,742,823
The allocation of SSC between the sub-funds fluctuates each year and is based on spending
levels, other revenue sources, and reserve requirements and balances in each fund. The above
allocation is based on the overall budget assumptions as specified in this document. As the
District is currently exploring a bond offering that may be used to fund a portion of FY 2021-22
and FY 2020-21 capital expenditures, the allocation of SSC to O&M and Capital sub-funds may
be revised through a budget amendment if this bond offering proceeds.
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Uses of Funds
The uses of funds (expenditures and contributions to reserves) for FY 2021-22 are shown in Figure 3.
Sewer construction funding is anticipated at 90% of the budgeted level, consistent with the assumption
in the financial plan that was the basis for the FY 2021-22 financial workshop on March 25, 2021. The
use of funds also incorporates a $6.0 million contribution to reserves. This total contribution to
reserves is comprised of a $5.2 million contribution to the Rate Stabilization Account from O&M and a
net contribution to reserves of$0.8 million between the O&M, Sewer Construction and Self-Insurance
Funds to retain reserves at the minimum fund levels defined by the Fiscal Reserves Policy.
Figure 3 — Total Funding Uses— FY 2021-22 Budget
Contribution to
Self-Insurance, Reserves, $842,965
$1,285,000 Planned Contribution
to Rate Stabilization
Debt Service, Account, $5,169,332
$2,511,227
Sewer Construction
Budget at 90%
Funding inFY 22,
$97,159,500 Operations and
Maintenance,
$90,974,103
Total FY 2021-22 Budgeted Expenditures and Contributions of Reserves: $197,942,128
The uses of funds for three budgeted years are shown in Figure 4.
Figure 4 -Where the Money Goes
FY 2019-20 FY 2020-21 FY 2021-22
$159,166,815 $182,361,443 $197,942,128
Use of Funds
S120,0o0,0oa
S100,000,00a
S80,00o,000
Sso,aoo,oao
$20,000,000
Operations and Sewer Construction Budget Debt Service Self-Insurance Contribution to Reserves
$(20'000'000) Maintenance at 90% Funding in FY 22
■FY 2019-20 Budget ■FY 2020-21 Budget O FY 2021.22 Budget
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Operations & Maintenance Budget Overview
Excluding the draw from reserves, total 0&M revenue for FY 2021-22 is projected to be $93.0 million,
compared to the FY 2020-21 budget amount of$65.4 million, as shown in Table 6.
Table 6 - FY 2021-22 Budgeted 0&M Revenues
11JAccount Description FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Budgetto Percent
Budget Actual Budget Projected Budget Budget Variance
Variance
RevenueL AM AL AL
Sewer Service Charge(SSC) $69,090,870 $70,408,903 $44,527,762 $44,821,000 $72,259,337 $27,731,575 62.3%
Concord SSC 14,570,000 14,923,591 15,760,000 15,400,000 15,800,000 40,000 0.3%
Permit&Inspection Fees 1,870,000 1,915,184 1,952,400 1,897,400 1,882,400 (70,000) -3.6%
Lease Rental Income 703,500 713,683 719,000 737,000 715,000 (4,000) -0.6%
HHW Reimbursement 968,000 883,919 1,064,000 936,000 977,000 (87,000) -8.2%
Stormwater/Pollution 370,000 356,755 390,000 325,000 390,000 0.0%
Prevention
Interest Income 1,231,000 636,685 190,000 160,000 180,000 (10,000) -5.3%
Recycled Water 420,000 503,622 420,000 420,000 432,000 12,000 2.9%
Other 337,000 628,405 409,000 300,472 328,000 (81,000) -19.8%
Total Revenue $89,560,370 $90,970,747 $65,432,162 $64,996,872 $92,963,737 $27,531,575 42.1%
O&M revenue increases by $27.5 million, or 42.1%, due primarily to the following:
• For FY 2020-21, the allocation of SSC to O&M was reduced due to a higher than required beginning
reserve level. This was the result of a redefinition of the elements comprising the O&M reserves.
For FY 2021-22, the allocation of SSC to O&M returns to a more typical level after the one-time
impact of the fiscal reserve change noted. Further, a planned transfer of the FY 2020-21 O&M
variances ($5.3 million) to the Rate Stabilization Fund is assumed, so the SSC allocation to O&M is
increased to provide for this and still meet the O&M reserve policy specified level.
• 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 O&M costs is expected to be $15.8 million in
FY 2021-22, essentially unchanged from the FY 2020-21 budgeted level.
As shown in Table 7, total O&M expenses are projected to be $91.0 million in FY 2021-22, an increase
of just $0.3 million from the $90.7 million budget in FY 2020-21. 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 seven
years in a row (FY 2014-15 to FY 2020-21), with only modest increases above $90 million for
FY 2020-21 and FY 2021-22. The budget continues to provide funding for strategic initiatives and key
activities, including ongoing efforts to respond to risks associated with the COVID-19 pandemic. Table
7 and Figure 5 show the FY 2021-22 O&M Budget by expense category.
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Measures which have facilitated the net result of only a relatively minor increase ($0.3 million, or 0.3%)
in the O&M budget from FY 2020-21 include:
• Adoption of a regulatory accounting policy whereby certain expenditures are included in the
capital budget. See "Regulatory Accounting" in section "Financial Planning Policies". For
FY 2021-22, this treatment resulted in approximately $1.2 million of costs being budgeted in
the Capital budget that may otherwise have been budgeted in O&M.
• Budgeting for OPEB expenditures at the actuarially determined contribution (ADC) level, rather
than the pay-as-you go level in previous years. As a result, approximately$1 million of pay-as-
you-go expenditures will be reimbursed from the OPEB Trust, reducing the amount that would
have been budgeted as an O&M expense.
• An increase in the headcount vacancy factor from 2% in the FY 2020-21 budget to 3% in the
FY 2021-22 budget. Compared to the prior year budget, this had the impact of increasing the
vacancy factor credit by$0.6 million, reducing total FY 2021-22 budgeted labor costs (wages,
benefits, UAAL) by a total of$2.5 million.
• Providing direct funding to the self-insurance fund from Sewer Service Charge revenue, rather
than routing such funding through the 0&M sub-fund. This removes $1,576,419 that would
have been included in the 0&M budget (compared with a budgeted $450,000 for FY 2020-21).
This treatment is appropriate in order to avoid "double counting" of spending by including the
transfer from 0&M to self-insurance as an expenditure in the 0&M fund, and the self-insurance
expenditures in the Self-Insurance Fund; this affects budget summary Table 1.
• A March 2021 California Supreme Court ruling regarding the interpretation of State of California
Code may increase the scope of service work for which payment of prevailing wages are to be
paid. This may increase costs in certain O&M spending categories. Any such impacts have not
been reflected in this budget document, as an impact assessment has not yet been completed.
To the extent these are significant, budget modifications may be necessary, or spending
reduced in other areas to fund these additional costs.
0&M salaries and benefits (labeled categories A and B in Table 7) comprise 57.6% of the overall O&M
Budget. Contributions toward unfunded liabilities (category C) are another 15.4%. Total labor-related
costs including Salary, Benefits, and Unfunded Actuarial Accrued Liabilities (UAAL) and additional
contributions are 73.0% of the O&M Budget, slightly less than the 73.8% in FY 2020-21 budget. All
other expenses (category D) comprise 27.0%, up from 26.2% in FY 2020-21.
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Table 7 - FY 2021-22 Budgeted O&M Expenditures and Contribution to / (Draw from)
Reserve
Account Description IFY 2019-20 IFY 2019-20 IFY 2020-21 IFY 2020-21 IFY 2021-22 Budget Percent 22
Budget Actual Budget Projected Budget Variance Variance Percent
of Total
1L �111 W
A.Salaries&Wages
A.Salaries&Wages $38,565,093 $35,697,503 $39,543,191 $37,570,381 $39,711,391 $168,200 0.4% 43.7%
B.Benefits
B.Ben
Credit efits&Cap O/H $11,982,565 $12,306,285 $11,545,173 $11,201,423 $12,682,629 $1,137,456 9.9% 13.9%
Salary&Benefits(Active $50,547,658 $48,003,788 $51,088,364 $48,771,803 $52,394,021 $1,305,657 2.6%
Employees)
C.OPEB and Pension UAAL and Additional Contributions qP
C.OPEB UAAL $2,346,076 $2,312,409 $2,451,000 $2,425,500 $1,260,000 ($1,191,000) -48.6% 1.4%
C.Pension UAAL $11,186,841 $11,240,285 $12,126,016 $11,672,536 $11,531,912 ($594,104) -4.9% 12.7%
C.Additional UAAL $1,250,000 $1,250,000 $1,250,000 $1,250,000 $1,250,000 $0 0.0% 1.4%
Contributions
Total UAAL and
Additional $14,782,917 $14,802,694 $15,827,016 $15,348,036 $14,041,912 ($1,785,104) -11.3% 15.4%
Contributions
Total Labor-Related Costs
(A+B+C) $65,330,575 $62,806,481 $66,915,380 $64,119,839 $66,435,933 ($479,447) 0.7% 73.1%
D.Other O&M Expenses
D.Purchased Property $4,483,744 $5,706,753 $6,334,577 $5,521,051 $5,926,840 ($407,737) -6.4% 6.5%
Services
D.Other Purchased $6,418,232 $3,483,286 $6,305,477 $5,078,578 $6,935,041 $629,564 10.0% 7.6%
Services
D.Supplies&Materials $9,322,677 $8,088,750 $9,466,300 $9,042,918 $10,512,734 $1,046,434 11.1% 11.6%
D.Other Expenses $1,204,547 $791,943 $1,194,604 $749,330 $1,163,556 ($31,048) -2.6% 1.3%
D.Other Expenses-Self $825,000 $825,000 $450,000 $550,000 $0 ($450,000) -100.0% 0.0%
Insurance
**Total Other O&M $22,254,200 $18,895,732 $23,750,958 $20,941,877 $24,538,171 $787,213 3.3% 27.0%
Total Expenditures $87,584,775 $81,702,214 $90,666,338 $85,061,716 $90,974,103 $307,765 0.3% 100.0%
Contribution to(Draw
From)Reserve $1,975,595 $8,674,889 ($25,234,176) ($20,064,843) $1,989,633 $27,223,809 107.9%
*Contributions made to the Section 115 secondary pension trust($1.25 million)are included in category C in this table,despite these
contributions being excluded for financial reporting purposes in the Comprehensive Annual Financial Report,pursuant to GAAP.
**Minor differences in previous year budget amounts due to rounding issues.
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Figure 5 - FY 2021-22 Budgeted O&M Expenditures
D.Other Expenses,1.3% D.Other Expenses-Self
Insurance,U.D%
D.Supplies&Materials,
11.6%
D.Other Purchased Services,
7.6%
D.Purchased Property A.5ataries&Wages,43.7%
Services,6.5%
C.Additional UAAL
Contributions,1.4%
C.Pension UAAL,12.7%
C.OPER UAAL,1.4%
B.Benefits&Cap O/H Credit,
13.9%
Variances in the Operations &Maintenance Budget
0&M costs overall increase from FY 2020-21 to FY 2021-22 by only $0.3 million or 0.3%. Figure 6
illustrates the historical trend of each of each of these major budgetary expense categories.
Figure 6 — 0&M Cost Comparison by Year
$45.0W.OW
$40AOO,OW m LA
$35.OW,OW
$30.OW.000
$25AW,OW
s20000,000
sls000,000
so I
s10.000,000 - R �
d c m u t oa
o
r c
y d
■FY 2019.20 Budget m 9 z
■FY 2019-20 Actual a
u o
■FY 2020.21 Budges
■FY 2020-21 Projected
■FY 2021.22 Budget
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The lettered O&M Fund expense categories in the preceding charts (Figures 5 and 6) correspond to the
descriptions below.
A. Salaries &Wages
Central San's budgeted salaries are $39.7 million in FY 2021-22, compared to $39.5 million in
FY 2020-21, representing an increase of$0.2 million, or 0.4%. The increase reflects a 1.75%
(Managers/Unrepresented) to 2.0% (Local One, MS/CG) salary adjustment effective April 2021, and
an assumed salary adjustment effective April 2022 of 3.75% (the actual adjustment will be based
on the Bay Area Consumer Price Index change from February 2021 to February 2022), and step
increases for newer employees. The vacancy factor has been increased from 2% in FY 2020-21 to
3% in FY 2021-22 based on actual recent experience, which mitigates much of the growth in this
expense category.
B. Benefits and Capitalized Overhead
Total benefits and capitalized labor increased from $11.5 million in FY 2020-21 to $12.7 million in
FY 2021-22, which are discussed as follows:
Table 7a— Benefits and Capitalized Overhead Detail
FY 2020-21 FY 2021-22 Budget to Budget .•
Budget Budget Variance($) Variance(%)
Benefits for Active Employees $16,628,569 $17,202,629 $574,060 3.5%
Capitalized Administrative ($5,083,396) ($4,520,000) $563,396 -11.1%
Overhead
Total, Benefits for Active
Employees net of Capitalized $11,545,173 $12,682,629 $1,137,456 9.9%
Administrative Overhead
Excluding the capitalized administrative overhead credit, benefits for active employees comprise of
healthcare costs, workers' compensation costs, payroll taxes, normal costs for pension and OPEB,
and benefit vacancy factor. These costs were $16.6 million in the FY 2020-21 budget and rise to
$17.2 million in the FY 2021-22 budget, which represents a 3.5% increase.
Changes in benefit cost assumptions are listed below. Given the timing of the budget process,
assumptions were made on program/premium 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 2021 and a 7.0% rate
increase is assumed for the six months starting January 2022.
• CCCERA—The retirement normal cost contribution rate is increasing 0.93%for legacy
employees to 16.96% effective July 1, 2021. The normal cost rate is increasing 0.18%for Public
Employees' Pension Reform Act (PEPRA) employees to 11.06% effective July 1, 2021. The
defined pension normal cost contribution rate changes incorporate numerous factors
pertaining to participant demographics, actuarial assumptions, and investment performance.
• Delta Dental— No rate increase for the six months starting July 2021 and a 3.75% rate increase
is assumed for the six months starting January 2022.
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• Vision— No rate increase for the six months starting July 2021 and a 3.75% rate increase
is assumed for the six months starting January 2022.
• Long-Term Disability—Central San recently transitioned to a new provider and the rate has
remained fixed from calendar year 2020 to 2021.
• Employee Assistance Program— No rate increase for the six months starting July 2021 and a
2.0% rate increase is assumed for the six months starting January 2022.
• 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 increases are being assumed for this benefit category, which is in
alignment with assumptions used by Central San's independent actuary in their most recent
actuarial report.
The Capitalized Administrative Overhead rate, a credit given for capital work to the O&M Budget
for non-work hours and overhead, changes from $5.1 million to $4.5 million in FY 2021-22, with the
reduction attributable to a reduction in the Board-approved Administrative Overhead and Benefits
Rate in FY 2021-22 due to savings arising from the transition to CalPERS healthcare as well as the
completion of most modules of the ERP project in FY 2020-21 (with only Permitting/Community
Development extending into FY 2021-22).
For improved financial planning and transparency purposes, the total budgeted cost for retiree
health, dental, life and vision premiums is now split between its normal cost and UAAL components
of the actuarially determined contribution (ADC) calculated by Central San's independent OPEB
actuary. The normal cost component of OPEB, which is considered an active employee cost (not
UAAL), is projected to increase from $1.6 million in FY 2020-21 to $2.1 million in FY 2021-22. See
Table 4 in Supplemental Financial Information for additional disclosures on OPEB.
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.
In FY 2021-22, the total estimated cost of retiree health premiums is $4.3 million, reflecting a 4.9%
increase from the $4.1 million budgeted in the prior year. However, given the strong funded
position of Central San's OPEB Plan, budgeted OPEB costs are capped at the ADC, which is $3.3
million in FY 2021-22. OPEB costs are "capped" as any costs above the ADC ceiling are eligible for
reimbursement from the OPEB trust. Per Board Policy 17 on Fiscal Reserves, "A planned draw from
the OPEB Trust may be included in a Board adopted budget and executed by the GM." Accordingly,
with adoption of this budget, a draw or reimbursement up to $1.3 million from the OPEB trust for
the pay as you go cost in excess of the ADC is anticipated during FY 2021-22. As a result of this
favorable development, the UAAL cost component of OPEB is decreasing from $3.7 million in FY
2020-21 to $1.3 million in FY 2021-22. It should be noted that reimbursing excess OPEB "pay-go"
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cost above the ADC ceiling will not eliminate Central San's gradual contributions towards paying
down the UAAL as the OPEB ADC is comprised of both a normal cost and UAAL component.
The pension unfunded liability expense to be paid to CCCERA is $11.5 million in FY 2021-22, which,
compared to a budget of$12.1 million in FY 2020-21, is a decrease of$0.6 million, or 4.9%. This is
largely reflective of the pension UAAL contribution rate decreasing from 34.81%to 34.5% in July
2021.
The budget also includes $1.25 million for additional contributions toward either pension or OPEB
obligations, to be determined by the Board during or after the fiscal year (for purposes of the
reserve calculation, this is shown as a contribution to OPEB). This is a continuation of the $1.25
million budgeted in FY 2020-21. To the extent that budget savings are available with the
completion of both FY 2020-21 and FY 2021-22, the Board may choose to direct part of the savings
toward additional unfunded liabilities funding. The amount of the FY 2020-21 budget variance as
shown in the projection in Tables 6 and 7 has already been accounted for in the reserve calculation
(Table 14), with a planned transfer of funds to the Rate Stabilization Account ("RSA") in
FY 2021-22. By assuming a planned transfer to the RSA, this provides maximum flexibility for the
Board to decide upon the disposition of the funds towards any use, which could include: (1)
towards employee pension or OPEB liabilities; (2) use towards 0&M of capital required reserves;
(3) other purposes such as mitigating rate adjustments.
D. All Other O&M Expenses
The remaining O&M non-labor expenses increase, from $23.8 million in FY 2020-21 to $24.5 million
in FY 2021-22, an increase of 3.1%. 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 a decrease of$0.4 million or
6.4%, largely resulting from a decrease in the Repairs & Maintenance sub-category. The
decrease in Repairs & Maintenance was primarily attributable to a reclassification of technology
costs budgeted in the Information Technology division. The reduction in the Repairs &
Maintenance expense category is largely offset by an increase in the Supplies & Materials
expense category, to separate the software license from software-as-a-service (SAAS) costs for
improved tracking and reporting purposes.
• Other Purchased Services—This expense increased by $0.6 million or 10%, largely due to cost
increases in the Human Resources and Information Technology Divisions. The increase in costs
in the Human Resources Division is primarily attributable to an increase in contracted labor
negotiation services with the upcoming expiration of the Management, MS/CG and Local One
labor agreements. The budgeted increase in the Information Technology Division for
contracted technical services associated with new initiatives such as long-term support for the
new state-of-the-art Oracle Cloud Fusion ERP system, new security services to address an
environment of increasing digital threats, a new integrated permit-tracking system, expanded
scanning services, as well as other new information technology-related contracted services.
• Supplies & Materials—This expense increased by $1.0 million, or 11.1%. The increase in
Supplies & Materials was largely attributable to increases in the Utilities & Fuel, Chemicals and
General Supplies & Materials sub-categories. The budgeted increase in Utilities & Fuel is largely
within the Treatment Plant Operations Division for projected increases in natural gas costs. The
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primary explanation for the increase in budgeted chemicals is attributable to budgeted
increases in the Treatment Plant Operations Division for lime. Central San's long-time lime
hauler went out of business after facing difficulties during the COVID-19 pandemic and new
budget estimates reflect a substantial increase in lime hauling costs pursuant to the newly
negotiated supplier contract. The increase in the General Supplies & Materials sub-category is
largely due to a reclassification of costs in the Information Technology Division to separate
software license from software-as-a-service (SAAS) costs for improved tracking and reporting
purposes.
• Other Expenses-This expense category remained largely unchanged, decreasing by only
$31,000, or 2.6%from the prior year's adopted budget. The main driver for this reduction is
within the Memberships sub-category due to a reduction in costs associated with Bay Area
Clean Water Agencies (BACWA) in the Environmental & Regulatory Compliance Division
expected in FY 2021-22.
• Other Expenses (self-insurance)-This line item was reduced by $450,000 due to excluding the
replenishment of self-insurance through the O&M budget, and instead providing a direct
allocation of sewer service charges to the self-insurance fund. An allocation of$1,576,419 is
necessary to replenish the self-insurance fund to the policy required level of$6.5 million.
• Technical Training, Conferences, & Meetings-These costs are an element of the Other
Expenses category and are summarized in Table 8 below. They are reported separately in the
Operating Departments divisional sections. The increases reflect increased technical training
for both new hires and succession planning efforts with existing staff. The amounts now
include tuition reimbursement and professional expense reimbursements, and prior year
amounts have been restated to reflect that.
Table 8 - Technical Training, Conferences, &Meetings
BudgetFY 2019-20 FY 2020-21 FY 2021-22 Budgetto Percent
Budget Budget Budget
Variance
Board of Directors $40,000 $40,000 $25,000 ($15,000) -37.5%
Administration Department $163,200 $169,000 $164,450 ($4,550) -2.7%
Engineering and Technical Services $152,725 $159,350 $165,750 $6,400 4.0%
Department
Operations Department $126,676 $146,725 $170,025 $23,300 15.9%
Total $482,601 $515,075 $525,225 $10,150 2.0%
* Includes tuition and professional expense reimbursements
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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 Budget by Department
Administration
Office of the General Manager $1,110,047 $1,068,263 $1,501,579 $875,875 $1,406,122 ($95,457) -6%
Office of the Secretary of the $1,501,297 $1,775,898 $998,779 $1,161,533 $1,007,942 $9,163 1%
District
Board of Directors $144,650 $153,990 $564,029 $706,732 $421,601 ($142,428) -25%
Office of the Director of Finance $- $- $579,032 $680,332 $737,111 $158,079 27%
&Administration
Communications Services and $1,980,908 $1,803,388 $2,128,081 $1,909,811 $2,184,043 $55,962 3%
Intergovernmental Relations
Finance $2,411,300 $1,714,913 $2,256,811 $1,966,898 $2,132,203 ($124,608) -6%
Human Resources/Retirees/ $9,046,860 $8,357,290 $8,958,488 $9,421,080 $8,212,860 ($745,627) -8%
Safety**
Information Technology $4,093,590 $3,677,401 $4,527,320 $4,558,051 $5,292,090 $764,770 17%
Purchasing and Materials $2,123,488 $1,571,030 $2,006,169 $1,664,420 $2,049,622 $43,453 2%
Services
Risk Management $1,867,875 $1,759,250 $1,628,463 $1,505,617 $1,175,638 ($452,825) -28%
Total $24,280,015 $21,881,424 $25,148,751 $24,450,349 $24,619,232 -$529,519 -2%
gineering and Technical Services 06
Office of the Director of
Engineering&Technical $- $- $1,132,683 $839,283 $1,112,194 ($20,489) -2%
Services
Capital Projects $455,841 $49,966 $883,170 $151,901 $661,852 ($221,318) -25%
Environmental and Regulatory $8,628,203 $8,261,444 $9,159,765 $9,031,798 $9,344,711 $184,946 2%
Compliance
Planning and Development $7,779,898 $7,253,053 $7,447,765 $6,442,526 $7,175,041 ($272,724) -4%
Services
Total $16,863,942 $15,564,463 $18,623,383 $16,465,507 $18,293,799 ($329,584)
Operations
Office of the Director of
Operations $ $ $1,035,340 $405,687 $736,609 ($298,731) 29%
Collection System Operations $14,701,713 $13,761,475 $14,916,566 $14,233,589 $14,982,438 $65,872 0%
Plant Operations $15,520,408 $15,493,822 $13,811,530 $13,615,678 $13,903,316 $91,786 1%
Plant Maintenance $14,610,349 $13,795,507 $15,659,478 $14,368,809 $16,827,960 $1,168,482 7%
Recycled Water Program $1,608,348 $1,205,523 $1,471,290 $1,522,096 $1,610,750 $139,460 9%
Total $46,440,818 $44,256,327 $46,894,204 $44,145,859 $48,061,072 $1,166,868 2%
Total All Departments $87,584,775 $81,702,214 $90,666,338 $85,061,716 $90,974,103 $307,765 0%
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Figure 7 - O&M Budget by Function
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000 -
$10,000,000
$5,000,000
$0 —
Engineering and Plant Operations,
Collection System Recycled Water
Administration Technical Services Operations Maintenance, Program
Department Director of Ops
MFY 2019-20 Budget $24,280,015 $16,863,942 $14,701,713 $30,130,757 $1,608,348
WFY 2020-21 Budget $25,148,751 $18,623,383 $14,916,566 $30,506,348 $1,471,290
NFY 2021-22 Budget $24,619,232 $18,293,799 $14,982,438 $31,467,884 $1,610,750
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). Chart "actual" reflects projection for
FY 2020-21.
Figure 8 - Historic O&M Budget versus Actual Spending in Millions (Multi-Year Trend)
$100 100%
$90
$80 95%
$70 90%
$60
$50 85%
$40
$30 80%
$20 75%
$10
11 11 11 11 1
$0 70%
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BUDGET ACTUAL Achievement%
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Staffing, Salaries, and Benefits (Costs included in both O&M and Sewer Construction)
Overall, total labor, benefit, and UAAL related costs decreased by$1.2 million, or 1.5%, from $79.2
million in FY 2020-21 to $77.9 million in FY 2021-22. Refer to Table 1 in the Supplemental Financial
Information for additional line item details.
Total salaries and benefits for active employees are budgeted at $62.6 million in FY 2021-22, including
both the O&M Fund and the Sewer Construction Fund, compared to $62.0 million in FY 2020-21, a $0.6
million increase. UAAL costs for pension and OPEB (which relate to both active employees and
retirees) are $15.3 million, down from $17.2 million in FY 2020-21.
Major factors affecting overall salaries and benefits include the following:
• Cost-of-living adjustments effective April 2021 based on provisions per memorandums of
understanding (MOUS)/ personnel resolutions with each bargaining unit ranging between 1.75%
and 2.00%, and an estimated placeholder of 3%for April 2022.
• Attrition of approximately 6.5% of the tenured workforce to be replaced by lower step level and
non-longevity eligible PEPRA tier employees.
• Capping the budgeted OPEB expense at the ADC, which is approximately$1 million lower than
estimated pay-as-you-go retiree premiums in FY 2021-22.
• Increasing the projected FTE vacancy factor from 2%to 3%to more-closely reflect recent vacancy
trends.
• Reduction in the employer UAAL contribution rate paid to CCCERA
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 Summary
..-
Active Employees
Budgeted Full-Time Employee Positions * 262.8 28.2 291.0
Budgeted Salaries&Wages $39,711,391 $4,264,151 $43,975,542
Budgeted Benefits $17,202,629 $1,446,384 $18,649,013
Capitalized Admin Overhead ** ($4,520,000) $4,520,000 $_
Benefits After Capitalized Administrative Overhead $12,682,629 $5,966,384 $18,649,013
Total Costs Active Employees*** $52,394,021 $10,230,534 $62,624,555
UAAL/Unfunded Liabilities&Additional Contributions
OPEB UAAL $1,260,000 $- $1,260,000
UAAL/Unfunded Liabilities for Pension&Additional
$12,781,912 $1,268,942 $14,050,854
Contributions
Total UAAL/Unfunded Liabilities&Additional Contributions $14,041,912 $1,268,942 $15,310,854
Total Labor Related Costs $66,435,933 $11,499,476 $77,935,409
OperationsFY 2020-21 Budget
Maintenance Construction
Active Employee Costs
Budgeted Full-Time Employee Positions* 264.60 28.40 293.00
Budgeted Salaries&Wages $39,543,191 $4,247,300 $43,790,491
Budgeted Benefits $16,628,569 $1,541,914 $18,170,483
Capitalized Administrative 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
OPEB UAAL $2,451,000 $- $2,451,000
UAAL/Unfunded Liabilities for Pension&Additional
$13,376,016 $1,364,491 $14,740,507
Contributions****
Total UAAL/Unfunded Liabilities&Additional Contributions $15,827,016 $1,364,491 $17,191,507
Total Labor-Related Costs $66,915,380 $12,237,101 $79,152,481
* 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.
**** UAAL payments were omitted from the Sewer Construction schedule in the published budget book for FY 2020-21;this revised
schedule has been corrected.
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, 2020. In addition to the 291 budgeted positions,
the General Manager has the ability to add five additional "transitional" positions at any given time to
backfill positions vacated due to an extended leave of absence or as necessary to properly address
succession planning. The costs associated with these positions are funded through vacancy savings.
Table 12 shows the positions by bargaining unit and division.
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Table 11 - Budgeted Full-Time Equivalents
Regular Employees
(Excluding Recycled Water Employees) 274.0 293.0 291.0
Limited Duration Employees
District Temporary Employees 16.0 8.0 11.0
Fill Station Attendants 2.0 2.0 2.0
Summer Students 1.0 24.0 12.0
Interns 13.0 13.5 13.0
Table 12 - Full-Time Equivalent Positions by Bargaining Unit and Division
Twoperations
Local One 21.0 38.0 107.0 166.0
Management
25.0 51.0 31.0 107.0
Support/Confidential Group
Management 4.0 4.0 3.0 11.0
Unrepresented 5.0 1.0 1.0 7.0
Total by Department 55.0 94.0 142.0 291.0
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. In January 2021, the Board approved changes
to six positions, based on an internal Classification Study completed by the Human Resources &
Organizational Development Division. Other changes affecting the classification structure are pending
implementation. 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.
Overall, staffing is budgeted at 291 full-time equivalent positions, which is reflective of the 2015
Organization and Staffing Plan recommendation, to add four positions to the then 287 budgeted
positions. While two limited duration positions for the permit counter were approved during
FY 2020-21, those positions are no longer budgeted in FY 2021-22.
Position changes within divisions are summarized below:
• Administrative Technician position was reclassified to Administrative Assistant (Office of the
General Manager)
• Senior Administrative Technician transferred from the Office of the General Manager to the
Director of Finance & Administration
Report is available here: https://www.centralsan.org/post/Organization-and-Staffing-Plan.
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• Senior Administrative Technician position reclassified to Human Resources Analyst (Human
Resources & Organizational Development)
• Vacant Operations Safety Specialist position was deleted and a Staff Engineer position was created
and transferred to the Plant Maintenance Division
• Vacant Senior Engineering Assistant position was deleted and an Assistant Engineer position was
added (Capital Projects)
• Three Engineering Technicians were reclassified to Engineering Assistants (Capital Projects)
• Engineering Assistant position was deleted and an Associate Engineer position was added (Capital
Projects)
• Vacant Deputy General Manager position was deleted and a Director of Operations was added
(Office of the Director of Operations)
• Administrative Assistant position in the Office of the Director of Operations transferred to the Plant
Operations Division
• Administrative Assistant position in the Office of the Director of Operations transferred to the Plant
Maintenance Division
• Two Administrative Technician positions were reclassified to Administrative Assistants (Collection
System Operations)
• Collection System Maintenance Scheduler position was reclassified to Maintenance Planner
• Media Production Technician position was reclassified to a Digital Media Content Specialist
• Assistant Engineer position was deleted and an Associate Engineer position was added in Planning
& Development Services
• Sr. Engineering Assistant was converted to an Assistant Engineer in Capital Projects
Capital Improvement Budget
Sewer Construction Fund revenues are projected to decrease by$28.3 million, from $95 million in
FY 2020-21 to $66.7 million in FY 2021-22.
This decrease is largely attributable to a reduced allocation of SSC compared to the prior year. In the
prior year, revisions to the minimum working capital reserve policy resulted in a one-time increase in
SSC being allocated to the Sewer Construction fund. Additionally, the City of Concord reimbursement
is projected to decrease by$6.6 million. While the budgeted capital expenditures for which the City of
Concord is responsible is increasing, their overall reimbursement amount is decreasing, as much of
these costs will be financed with the SRF loan. The City of Concord, accordingly, will only pay a
proportionate share of debt service on the loan, which is not due in FY 2021-22. The City of Concord's
capital budget responsibility is based on its flow proportionate share of treatment plant, recycled
water and general improvement components of the capital budget. $34.12 million of borrowing from
the SRF is anticipated to fund the Solids Handling Facilities Improvements Project in FY 2021-22.
The $107.955 million budget does not include the anticipated carryforward from FY 2020-21, which will
be communicated to the Board after the close of the current fiscal year. The $19.9 million increase, or
23%, 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.
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A change for FY 2021-22 is the fact that only 90% of the budgeted capital spending will be funded, with
the assumption that capital spending in the year has lagged budget authority. In the 10-Year Financial
Plan, this lagged spending authority is assumed to be "caught up" in the outer years of the plan.
Central San will contribute approximately $3.66 million to capital reserves during FY 2021-22 with
revenues and bond proceeds exceeding expenditures by that amount. Funding the Sewer Construction
Fund (Capital Improvement) Working Capital Reserves exceeds the requirement of the aforementioned
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 $125.5 million in
FY 2024-25.
Table 13 below is a summary of the projected FY 2021-22 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
Fly 2019-20 72019-20 FY 2020-21 FY 2020-21 FY 2021-22 Budget to BudgeC Percent
BudgetBudget Actual NN*udget Projected
venu
Capacity Fees-Gravity $5,750,000 $6,738,095 $6,000,000 $5,630,000 $5,799,000 ($201,000) -3%
Capacity Fees-Pumped Zone 291,000 $286,186 262,000 147,000 151,000 (111,000) -42%
Interest Income 674,000 $996,041 293,500 310,000 319,000 25,500 9%
Ad Valorem Taxes 14,520,000 $16,127,444 15,940,000 16,978,000 17,320,000 1,380,000 9%
Sewer Service Charge 32,219,130 $32,829,958 56,673,402 57,045,001 34,108,232 (22,565,170) -40%
16 Reimbursement
City of Concord $11,630,000 $11,393,000 $15,300,000 $16,000,000 $8,700,914 ($6,599,086) -43%
Recycled Water Sales - - - - - 0%
Developer Fees and Charges 514,000 419,195 484,000 288,600 297,600 (186,400) -39%
Total Revenue $65,598,130 $68,789,918 $94,952,902 $96,398,601 $66,695,746 ($28,257,156) -30%
Loan&Bond Procee s
State Revolving Fund Loan
Proceeds $3,000,000 $34,120,000 $31,120,000 1037%
Total Revenue and Loan $65,598,130 $68,789,918 $97,952,902 $96,398,601 $100,815,746 $2,862,844 3%
Proceeds
Expenditures
Treatment Plant Program $28,330,000 $26,918,408 $32,334,000 $30,350,000 $45,230,000 $12,896,000 40%
Collection System Program 27,130,000 16,554,310 40,165,000 $37,399,000 39,795,000 ($370,000) -1%
General Improvements Program 4,264,000 6,227,401 3,925,000 $3,533,000 3,830,000 ($95,000) -2%
Recycled Water Program 4,452,000 3,962,465 9,100,000 $8,190,000 16,600,000 $7,500,000 82%
Contingency 2,000,000 - 2,500,000 - 2,500,000 $0 0%
Total Expenditures $66,176,000 $53,662,584 $88,024,000 $79,472,000 $107,955,000 $19,931,000 23%
Carryforward 8,493,521 20,571,770 29,123,770
Total Expenditure Authority $74,669,521 $- $108,595,770 $108,595,770 $- $-
Sewer Construction Funds Available
Projected Revenue and Loan
$68,789,918 $97,952,902 $96,398,601 $100,815,746
Proceeds
Expenditures 53,662,584 88,024,000 79,472,000 107,955,000
Less:90%Spending Factor for - - - (10,795,500)
FY 2021-22
Contribution to Reserves $15,127,334 $9,928,902 $16,926,601 $3,656,246
Anticipated Cash Funded Capital $85,024,000 $66,451,500
Expenditures
* Projection as of March 2021.
**The FY 2021-22 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.Capital Projects anticipates closing out and saving about$2—2.5 million from the FY 2020-21 carry-forward.
***Reserve calculation assumes difference between FY 2020-21 budget and projected spending will be spent in FY 2021-22 or future years.
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Impact of Capital Improvement Budget on Ongoing Operations &Maintenance Budget
Central San's Capital Improvement Budget and the extent to which FY 2021-22 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 2021-22 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.
Reserve Projections
BP 017 - Fiscal Reserves set targets for each of Central San's reserve funds. Fiscal reserves provide
working capital for 0&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 year-end FY 2019-20 but are
adjusted annually based on changes in the targeted reserve 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 (BP) targets. The reserve levels are projected to be above the policy-required levels on
June 30, 2020 and 2021. The FY 2021-22 revenue requirement provides for a net $6.2 million increase
in the reserve balances, prior to any planned transfers.
• The reduction in the 0&M reserve is related to higher than policy specified funding in the reserve
at June 30, 2020, including anticipated favorable variances for FY 2020-21. The savings from the
favorable variance (the net revenue and spending variance of$5,169,332) is assumed to be then
transferred to the Rate Stabilization Fund in FY 2021-22. With this planned transfer, the O&M
reserve is projected to decrease by $3.2 million from June 30, 2021 to June 30, 2022.
• The increase in the Sewer Construction reserve of$3.66 million relates to the anticipated increase
in Capital Improvement Budget spending in subsequent years, and planned use of cash in those
years.
• The projected increase in the Self-Insurance Fund reserve of$0.4 million is related to lower than
required funding projected to be available in the reserve at June 30, 2021, due to higher insurance
premiums in the current fiscal year.
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The projected amounts are subject to change based on actual financial results for the current and next
fiscal years.
The primary impact of the status of the reserves is on the allocation of the Sewer Service Charge, as
documented in Table 5 of this Financial Summary section. Absent other actions, to the extent that the
O&M fund has more reserves than are required under the policy, that sub-fund would receive a lower
allocation of SSC.
Also provided on Table 14 is a projection of the Rate Stabilization Fund, Pension Trust Fund, and OPEB
Trust Fund. Assumptions include:
• Rate Stabilization Fund Reserve Account -This account was initially funded with an initial deposit
from the FY 2018-19 fiscal year close-out of$2.61 million. The Board also directed $2.15 from the
FY 2019-20 closeout to this fund in the fall of 2020. This budget document, in the reserve
projection, assumes a FY 2021-22 planned transfer of the projected O&M variance in FY 2020-21 to
the Rate Stabilization Fund of$5,169,332, based on the projected O&M expenses and revenues in
Tables 6, 7, and 13. By assuming this planned transfer, a higher allocation of SSC goes towards
0&M in FY 2021-22 than would otherwise be the case. By directing the funds to the Rate
Stabilization Fund, greater flexibility for future use of the funds by the Board is provided for than
without this assumption. Future uses may include:
o Contributions towards pension or OPEB liabilities
o Funding billing adjustments or other Board specified uses for mitigating rate impacts
• Pension Prefunding Trust Fund -The projected balance as of June 30, 2020 includes earnings
through March 31, 2020. No earnings on the account are projected for FY 2021-22 (although the
account is anticipated to earn long-term average annual returns of 5.82%).
• OPEB Trust Fund -The projected balance as of June 30, 2020 includes earnings through
March 31, 2020, and the $1.25 million budgeted in FY 2019-20 towards employee related liabilities
is deposited here. No earnings on the account are projected for FY 2021-22 (although the account
is anticipated to earn long-term average annual returns of 6.25%).
The Supplemental Financial Information section of this budget document contains a table showing
changes in net position and fund equity.
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Table 14 — Reserve Projections
Sewer. Self-insurance
O&M Fund Construction Fund Totals
Fund(Capital)
Actual Balance as of June 30,2020
$65,959,541 $6,758,581 $146,520,557
Projected Balance as of June 30, 2021 $43,644,698 $6,133,581 $111,383,544
Change in Reserve balances during
FY 2021-22:
Net Increases from Revenue over Expenses: $1,989,633 $73,802,435 $366,419 $6,012,298
Planned Transfers in FY 2021-22 ($5,169,332) $61,605,266 ** $- ($5,169,332)
Projected Balance as of $40,464,998 $6,500,000 $112,226,509
June 30,2022
Change year over year ($3,179,699) $3,656,246 $366,419 $842,965
Reference: Table 7 Table 13 Self-Insurance See Figure 3
Table 1
Percentage change year over year -7.3% 5.9% 6.0% 0.8%
Ending balance
at 6/30/21 is Funds were set
projected to be aside in
above policy Recent years to
Explanation required level be used toward
due to the funding of
projected 0&M future year's
savings in Capital Budgets
FY 2020-21
Comparison to Policy Target-Start of Budget Year
50%of following 3 times
5/12 of annual
Policy Target following year's Year's non-debt deductible of
O&M Budget funded Capital Budget $500,000 plus
$5 million
Reserve Policy Target end of
$37,905,876 $33,225,750 $6,500,000 $77,631,626
June 30,2021
Projected Balance minus Reserve Policy $5,738,821 $28,379,516 ($366,419) $33,751,918
Target at June 30,2021
Comparison to Policy Target-End of Budget Year
Reserve Policy Target end of
June 30,2022 $40,464,998 $32,506,441 $6,500,000 $79,471,439
Projected Balance less Reserve Policy Target
($-) $32,755,070 ($-) $32,755,070
at June 30,2022
Reserve calculations subject to close of financial results for the year and may differ from projection.
** Excludes projected carryforward of$29,123,770(also to be adjusted for any closeout savings). Projected reserves at
6/30/2021 and 6/30/2022 would be that amount higher with inclusion of the carryforward.
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Table 14 - Reserve Projections (continued)
Actual Balance as of June 30, 2020 $2,610,000 $10,322,954 $69,849,380
Projected Balance as of June 30,2021 $4,760,000 $12,019,000 $80,868,359
Change in Reserve balances during FY 2021-22:
Planned Transfers in FY 2021-22 $5,169,332 $- $1,250,000
Projected Balance as of June 30, 2022 $9,929,332 $12,019,000 $82,118,359
Change Year Over Year $5,169,332 $- $1,250,000
Reference:
Percentage Change Year Over Year 108.6% 10.4% 1.5%
$1.25 million
FY 2021-22 budgeted increase
Explanation Planned Transfer Earnings Not assumed.
from O&M. Projected FY 2021-22
Earnings Not
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
$4,760,000 $12,019,000 $80,868,359
June 30,2021
Comparison to Policy Target-End of Budget Year
Reserve Policy Target end of June 30,2022 N/A N/A N/A
Projected Balance minus Reserve Policy Target at
$9,929,332 $12,019,000 $82,118,359
June 30,2022
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Page 101 of 349
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. The SRF loan, when the loan agreement and repayment schedule is finalized, would
also add to these debt repayment amounts. The SRF loan agreement is expected to be finalized prior
to the end of FY 2020-21. Future debt issuances, if any, would add to this debt profile. As discussed
elsewhere, staff are working on a June 2021 debt issuance. The debt service schedule for this
transaction has not been finalized.
Figure 9 - Debt Service Payment Schedule
$3,ODg000
wl Pri nci pal
52,500,000
Wllnterest
$2,000,000
51,500,000
51,000,000
5500,000
50
MEN—.-
FY 2020- FY 2021- FY 2022- FY 2023- FY 2024- FY 2025- FY 2025- FY 2027- FY 2028- FY 2029-
21 22 23 24 25 25 27 28 29 30
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Page 102 of 349
Long-Term Spending Trend
Operations & Maintenance
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 seven years (from FY 2014-15 to FY 2021-22). FY 2021-22 provides for an increase of just 2.1%
above the six-year average ($89,160,195) of the preceding 0&M budgets. Among other factors that
have facilitated this have been decreasing pension UAAL rates assessed by CCCERA since 2015. These
reductions have offset other cost increases in the O&M budget. Pension UAAL rates increased
significantly due to actuarial losses after the great recession of 2008, and due to "depooling"
(separately calculating and assigning costs to specific participating agencies or groups within CCCERA).
These UAAL costs are projected further towards the end of this decade when the UAAL is scheduled to
be eliminated. Central San is also working with its financial advisor on a potential bond offering that
may be used to fund a portion of capital expenditures in FY 2021-22, and make funding available to pay
down the CCCERA UAAL in that fiscal year, with the objective of producing cost savings over the next
decade.
Figure 10 - Long-Term O&M Spending Trend
S loo,000,aoo
S90,000,000
S80,000,000
$70,000,000
$60,000,000
$50,000,000
sao,000,000
$30,000,000
$20,000,000
$10,000,000
S_
�p�o� s�ti sip sk s�'�. A p Alp � ti° -` �� �3 ti° 1y ti's 4 "O -1 1P titi �
� �^C ~^t�~'C 's)
^C�1^C� q 4, -Fs'-Fs' -P '0' 0' ro, �1°'1. � q v°~�
4Y 4, F� 4� 4y 4r 4ik 4k 4k 4, 4A 40 4y 4r k,
Budget Actual
May 20, 2021 Regular Board Meeting Agenda Packet7$Page 186 of 457
Page 103 of 349
Sewer Construction (Capital)
Capital spending has been ramping up significantly since FY 2016-17, with spending projected to
average $93.9 million per year over the next decade (in 2021 dollars). Over the past 10 years, actual
spending (and projected spending for FY 2021-22) has been $382.1 million, while budgeted spending
(called "estimated expenditures" prior to FY 2017-18) was $427.2 million.
Figure 11 - Infrastructure Investments Over Past Ten Years: $382.1 million (Actual)
Sss.o
$s.2
s�a.n
66 $3.5
Sro.a
S5o.0
45.3 $4'0
$41.2 $42.8 $fi
Soo.o
$29.6
30.8
0. 25.9 'S2.5
s20.0
$26.9 $30.4
Sro.o $20.0
Sao $1 6
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 FY 2020-21
Projected
�Recycled Water Program
�General Improvements Program
M Collection System Program
�Treatment Plant Program
—Budget(FY2017-18 forward)and"Estimated Expenditures"previously
May 20, 2021 Regular Board Meeting Agenda Packet7-gPage 187 of 457
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Page Intentionally Blank
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Operating Departments
On a day-to-day basis, the following three Operating Departments that make up Central San carry out
the mission of protecting public health and the environment:
• Administration
• Engineering and Technical Services
• Operations
The departments work together to provide both exceptional internal and external customer service in
the operation of Central San's wastewater collection, treatment, recycled water, and household
hazardous waste collection facilities. The departments are guided by Central San's Strategic Plan,
which provides direction and initiatives to help achieve the strategic goals and objectives.
The three department directors 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 2020-21 as projected at the time this book was drafted at the end of
March 2021; performance against the FYs 2018-20 Strategic Plan key metrics in FYs 2019-20 and
against the FYs 2020-22 Strategic Plan key metrics in FY 2020-21 as of Q2; and operating budget needs.
For final FY 2020-21 strategic performance data, please refer to the FY 2020-21 Strategic Plan Annual
Report after its publication in fall 2021. The total operating budget for FY 2021-22 is $91 million, a $0.3
million or 0.3% increase over the $90.7 million budget for FY 2020-21.
701
�i '
r
�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; financial management;
human resources (HR) and organizational development; 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
o Office of the General Manager
o Office of the Secretary of the District on
o Board of Directorsf
• HR and Organizational Development @
se
• Office of the Director of Finance &Administration
• Communication Services and Intergovernmental - -°
Relations -
• Finance Ilk
• Information Technology (IT)
• Purchasing and Materials Services
• Risk Management
i
ti g
d
HEADWORKS
r �
iA
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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 and 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 Central San's overall goals and Strategic Plan. The
General Manager reports directly to the Board; acts as Central San's representative to other agencies;
and provides oversight to all operations. This includes interagency relations, legislative activities,
communications, optimization efforts, and the completion of the Strategic Plan goals.
This office also provides direction, support, and resources to internal departments so they may
effectively and efficiently accomplish the Vision, Mission, and Goals of Central San. The
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 performance, as well as the FY 2021-22 targets and
objectives, are embodied in each of the individual division and program sections.
The General Manager's 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 2020-21 Strategic Accomplishments
' ' ' CUSTOMER AND COMMUNITY
9W • Oversaw the effort to continue providing essential services during the COVID-19
pandemic while protecting employees, the public, and the environment.
• Served on the boards of National Association of Clean Water Agencies (NACWA),
California Association of Sanitation Agencies (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.
• Received 72 applications for the next in-person Central San Academy session (the
2020 session was postponed).
• Held a Virtual Central San Academy session to reconnect with past participants and
meet potential new participants.
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ENVIRONMENTAL STEWARDSHIP
F • Continued efforts to augment the region's water supply through the proposed
,i 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.
' FISCAL RESPONSIBILITY
• Regularized internal audit function with hiring of full-time dedicated internal auditor.
• Completed annual Benchmarking Study based on the American Water Works
Association (AWWA) Utility Benchmarking framework and solicited involvement from
34 California agencies.
WORKFORCE DEVELOPMENT
*� • Held virtual town halls with each department to update employees on current issues
and receive feedback.
• 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 frequently with bargaining unit representatives to maintain open communication
and resolve issues early.
INNOVATION AND OPTIMIZATION
• Held the first Innovations Fair, recognizing innovative employees going above and
beyond to improve and optimize their work with a virtual celebration of their projects
over the past three years, and an awards ceremony commemorating their work.
• 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.
AGILITY AND ADAPTABILITY
• Modified operations to balance safety while maintaining essential services, including
■ establishing drop-off and pick-up services, launching electronic payment capabilities,
changing working hours, and transitioning in-person services such as education
programs and recruitment testing to a virtual format.
• Allowed employees to work from home where possible based on their job duties
and ability to remote work effectively.
• Completed productivity assessment during the early months of alternative working
arrangements and adjusted work practices to maximize productivity and ensure
continuity of services to customers to the extent practicable.
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FYs 2019-20 and 2020-21 Strategic Targets and Performance
FY 2019-20 IFY 2019-20 FY 2020-2021
Go Target Performance IFY 2020-21 Target Performance
as of •
.• Participants in Citizens >30 N/A N/A
Academy, Central San (2020 Session >_35 (Virtual Spring 2021
Academy per Session Postponed) Session Not Yet Held)
. Awards or >10 16 ;�r >_10 6 :��
Recognitions Received r , r
Completed (Not a Metric in the >_20 7 jr
Optimizations '�r
FYs 2018-20 Strategic Plan)
N/A i r
Productivity (Not a Metric in the >_95% >95% ; ;
FYs 2018-20 Strategic Plan)
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FY 2021-22 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:
Objective
® Continue to provide staff with resources and high-level guidance needed to maintain
excellence in the industry.
Deliver High-Quality
Customer Service
Represent Central San's best interests in involvement with industry associations and
Maintain a Positive advocacy groups regionwide,statewide, nationwide,and worldwide.
Reputation
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
Continue the development of the internal audit function with workplans presented
Ensure Integrity and annually and internal audit reports presented to the Board.
Transparency in Financial
Management
Continue to meet regularly with labor bargaining unit representatives and division
i`r workgroups to maintain an open channel of communication, address workplace issues,
Foster Relationships Across and assist in adoption of successor memoranda of understanding with the bargaining
All Levels of Central San units in a timely manner.
Continue to inspire performance,efficiency,and effectiveness through the
Improve and Modernize Optimizations Program,the Central San Smart initiative,fulfillment of the Strategic Plan,
Operations through and an employee recognition program.
Technology and Efficiency
Measures
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Budget Overview by Expense Cate or
F Y71�-9 Budgetto Budgetto
u.t 7,c,1,1,V,V. I FY 20-21 FY 20-21 FY 21-22 Budget Budget
Budget Actual Budget Projection Budget Variance Variance
Salaries&Wages $717,134 $709,085 $815,472 $546,565 $701,216 ($114,256) -14.0%
Employee Benefits 187,232 168,751 270,585 139,007 260,376 (10,209) -3.8%
Retiree Costs 198,181 190,427 257,072 122,740 236,130 (20,942) -8.1%
Purchased Property Services - - - 728 600 600
Repairs&Maintenance 728 600 600
Rentals - - - - -
Purchased Professional,Technical& 80,000 106,200 26,200 32.8%
Other Services
Professional Services 50,000 19,200 (30,800) -61.6%
Technical Services 30,000 12,000 (18,000) -60.0%
Other Purchased Services - 75,000 75,000 -
Supplies&Materials 7,800 4,388 9,000 1,200 15.4%
Utilities&Fuel - - - - -
General Supplies 7,800 4,388 9,000 1,200 15.49/o
Other Expenses 7,500 70,650 62,446 92,600 21,950 31.1%
Memberships - 45,900 41,000 46,900 1,000 2.2%
Training&Meetings 7,500 20,750 20,918 35,700 14,950 72.0%
Miscellaneous Other - 4,000 528 10,000 6,000 150.0%
Total Expenses $1,110,047 $1,068,263 $1,501,579 $875,875 $1,406,122 ($95,457) -6.4%
Personnel Requirements IFY 2019-20
Employeesegular Status
Actua�.-J_L
General Manager 1.0 1.0 1.0
Administrative Assistant 1.0 1.0 1.0
Executive Assistant 1.0 1.0 1.0
Internal Auditor - 1.0 1.0
Management Analyst 1.0 - -
Senior Administrative Technician 1.0 1.0 0.0
Total 5.0 5.0 4.0
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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 leads the effort to address all key priorities facing Central San, as
described in the General Manager's Message. The Office of the General Manager's budget for
FY 2021-22 is $1.4 million, a $95,000 or 6.4% decrease from budget of$1.5 million in FY 2020-21. This
decrease is primarily attributable to the transferring of the Senior Administrative Technician position to
the Director of Finance &Administration division in the FY 2021-22 budget. Commencing in
FY 2021-22 the annual contribution to Contra Costa County Local Agency Formation Commission
(LAFCO) is being budgeted in Office of the General Manager org unit as the purpose of LAFCO and its
activities are more closely aligned with the purpose of the Office of the General Manager. Annual
LAFCO contributions were previously budgeted in the Office of the Secretary of the District.
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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 2020-21 Strategic Accomplishments
CUSTOMER AND COMMUNITY
• Conducted 6 California Voting Rights Act (CVRA) Public Hearings to transition to by-
area elections for Central San.
• Coordinated Board Self-Evaluation Workshop, Financial Planning Workshop, and
annual review of Board Member compensation and benefits.
• Facilitated adoption of the new Electronic Signatures policy, Pension Funding policy,
and Other Post-Employment Benefits (OPEB) Policy.
• Coordinated meetings for Board Liaisons with representative cities and agencies.
• Provided Records Program services to all departments, including indexing over 15
new records boxes transferred to storage, creating and printing over 700 new file
folder labels, delivering over 20 boxes requested from storage, and processing
shredding services for over 12 boxes of approved destructions, non-records, copies,
and transitory documents.
ENVIRONMENTAL STEWARDSHIP
• Developed new policy and converted Board Compensation resolution to a new
., Board Policy to generate regular review.
• Facilitated the filing of Statements of Economic Interest (Form 700) for all
designated filers under the Conflict of Interest Code.
• Coordinated biennial review of existing Board policies and facilitated amendments
to six Board policies.
■ WORKFORCE DEVELOPMENT
• Scheduled Board Member attendance at workshops on Ethics Compliance and
Harassment Prevention.
• Staff attended California Clerks Association, California Special District Association
Board Secretary, and Association of Records Managers and Administrators
Conferences.
NovAGILITY AND ADAPTABILITY
• Converted all Board meetings and committee meetings to virtual meetings.
• Held bid openings remotely and live online.
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FYs 2019-20 and 2020-21 Strategic Targets and Performance
Goal Y • • • FY 2020-21 •
Target Performance Target as . .
Biennial Review N/A
of All Existing 100% 100% ��� (Not a Metric in the
Board Policies FYs 2020-22 Strategic Plan)
FY 2021-22 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
Develop procedures for onboarding a new Board Member.
Obtain electronic posting system for agendas and public hearing notices.
Provide
High-Quality Customer Service
Conduct CVRA meetings with updated 2020 Census Data.
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 Complete project with the Information Technology Division to optimize use of
and Efficiency Measures electronic records to improve processes throughout Central San and develop an E-
Records Master Plan.
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Budget Overview by Expense Category
FY 19-20 FY 19-20 FY 20-21 FY 20-21 FY 21-22 Budgetto Budgetto
Account Description Budget Actual Budget Projection Budget Budget Budget
Salaries&Wages $725,381 $882,742 $483,201 $578,515 $575,220 $92,019 19.0%
Employee Benefits 69,255 314,698 160,700 216,931 148,688 (12,012) -7.5%
Retiree Costs 205,081 273,341 165,473 229,592 162,630 (2,843) -1.7%
Purchased Property Services 25,000 21,520 24,850 11,317 24,850 0.0%
Repairs&Maintenance 10,000 7,931 9,850 1,120 9,850 0.0%
Rentals 15,000 13,589 15,000 10,197 15,000 0.0%
Purchased Professional,Technical& 346,000 198,376 132,000 111,897 59,000 (73,000) -55.3%
Other Services
Professional Services 200,000 104,150 50,000 42,031 50,000 0.0%
Technical Services 70,000 23,233 6,000 1,700 6,000 0.0%
Other Purchased Services 76,000 70,994 76,000 68,166 3,000 (73,000) -96.1%
Supplies&Materials
General Supplies 24,950 12,899 11,000 5,981 16,000 5,000 45.5%
Other Expenses 105,630 72,323 21,555 7,300 21,555 - 0.0%
Memberships 57,380 39,395 4,555 1,700 4,555 0.0%
Training&Meetings 33,250 21,156 14,500 3,199 14,500 0.0%
Miscellaneous Other 15,000 11,771 2,500 2,401 2,500 - 0.0%
Total Expenses $1,501,297 $1,775,898 $998,779 $1,161,533 $1,007,942 $9,163 0.9%
*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.
Personnel Re uirements
FY 2019-20
Regular Status Employees Year-End FY 2020-21 FY 2021-22
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
FY 2019-20
Limited Duration Employees
Actual
Temporary Senior Administrative Technician 1.0 - 1.0
Total 1.0 - 1.0
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, new organization units (org unit(s)) 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 &
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Administration. Beginning in FY 2020-21, each of these four previously consolidated cost centers have
been separated.
The Office of the Secretary of the District assures the ongoing flow of information to and from the
Board, facilitating policy direction and oversight. The Office of the Secretary of the District Operating
Budget for FY 2021-22 is $1.0 million, remaining relatively flat with an increase of only 0.9% over last
year's budget. As noted previously, commencing in FY 2021-22 the annual contribution to Contra
Costa County Local Agency Formation Commission (LAFCO) is being budgeted in Office of the General
Manager org unit as the purpose of LAFCO and its activities are more closely aligned with the purpose
of the Office of the General Manager. Annual LAFCO contributions were previously budgeted in the
Office of the Secretary of the District. Largely offsetting this budgetary cost transfer is the inclusion of
a District temporary Senior Administrative Technician to help address an expanded workload during
the retirement of the Assistant to the Secretary of the District as well as ongoing work associated with
the implementation of new districts during FY 2020-21 pursuant to the California Voter Rights Act
(CVRA).
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Board of Directors
OVERVIEW
The Board of Directors (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 19-20 FY 19-20 FY 20-21 FY 20-21 FY 21-22 Budgetto BudgettoAccount DeVariance Variance(%)
scription Budget Actual Budget Projection Budget Budget Budget&Wages $54,650 $44,530 $54,650 $56,240 $54,650 $- 0.0%
Employee Benefits 50,000 89,847 106,229 94,538 82,301 (23,928) -22.5%
Purchased Professional,Technical& - - 350,000 548,281 250,000 (100,000) -28.6%
Other Services
Professional Services 100,000 242,173 250,000 150,000 150.0%
Other Purchased Services 250,000 306,108 - (250,000) -100.0%
Supplies&Materials
General Supplies 5,150 500 5,150 0.0%
Other Expenses 40,000 19,613 48,000 7,173 29,500 (18,500) -38.5%
Memberships - - - 260 500 500
Training&Meetings 40,000 19,613 40,000 5,913 25,000 (15,000) -37.5%
Miscellaneous Other - - 8,000 1,000 4,000 (4,000) -50.0%
Total Expenses $144,650 $153,990 $564,029 $706,732 $421,601 ($142,428) -25.3%
*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.
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 2021-22 is approximately $0.4 million, reflecting a
decrease of 25.3%from a budget of$0.7 million in FY 2020-21. This decrease is nearly entirely
attributable to there not being a general election in FY 2021-22. The budget also reflects fewer Board
members anticipated to take health insurance next fiscal year based on the current Board makeup.
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Human Resources and Organizational Development
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 2020-21 Strategic Accomplishments
' FISCAL RESPONSIBILITY
• Contracted with BCC to administer Medicare reimbursements, saving Finance staff
time on processing these in house.
• Transitioned cafeteria plan benefits program administration to BCC to consolidate
with newly added Medicare reimbursement third-party processing.
WORKFORCE DEVELOPMENT
• Formalized an Organizational Development and Talent Management unit within HR.
AM • Launched Employee Recognition Events program to allow managers to acknowledge
extraordinary achievements.
• Completed and implemented the Classification Study.
• Developed pre- and post-employment testing matrix for all job classifications.
• Developed a biannual Supervisors' Summit to discuss items of interest and receive
brief refreshers on safety directives, HR procedures, workers' comp practices, and
other policies.
• Held virtual Q&As on Central San-wide policies and procedures such as bi-weekly
pay transition and COVID-19 Exposure Prevention Plan.
• Offered financial webinars educating employees on budgeting, investment,
retirement, and other topics related to managing money.
• Offered monthly wellness seminars on topics related to physical and mental health.
• Conducted harassment prevention training for all employees.
• Completed preparation activities to assist in the timely adoption of successor
Memoranda of Understanding for all bargaining groups, including analysis,
development of a tracking Gantt chart, and benchmarking studies.
• Developed an Innovation Recognition Program,which included the first annual
Innovations Fair, showcasing and celebrating innovative employees going above and
beyond to improve and optimize their work.
• Managed the third cycle of the BOOST Mentorship Program.
• Developed the Career Development Program for implementation in FY 2021-22.
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Page 119 of 349
• Continued to meet with Local One and Management Support/Confidential Group
Labor Management Committees quarterly.
• Held ongoing HR and union representative/employee meetings.
• Prepared enhanced performance appraisal forms and training materials for
implementation in FY 2021-22.
• Developed the first ever formal Central San Externship Program for college students
and recent graduates nationwide.
• Worked with BAYWORK to launch a new website with training resources.
• Hosted, in conjunction with BAYWORK, The Wonders of Wastewater Workshop for
Educators 2020.
• Became an active participant in the BAYWORK-sponsored Racial Equity, Diversity,
and Inclusion group, including staff being certified in Diversity, Equity and Inclusion
in the Workplace.
• Continued coordinating with other agencies to support development of the regional
workforce.
• Responded to local wildfires of 2020 by developing Safety Directive 7.1 - Protection
from Wildfire Smoke.
• District Safety Committee implemented Safety Suggestions in less than 60 days.
• Administration and Engineering Departments had zero lost workdays.
• Collection System Operations Division worked 337 continuous days without a lost-
time incident (as of 3/19/21).
INNOVATION AND OPTIMIZATION
r • Configured, tested, launched, and troubleshooted an ERP payroll system.
• Launched benefits module and timekeeping system within the new ERP.
• Launched employee self-service capabilities within the ERP.
AGILITY AND ADAPTABILITY
• Coordinated Central San's response to the COVID-19 pandemic, ensuring essential
■ services remained intact while protecting staff, the public, and the environment.
• Developed, implemented, and enforced a COVID-19 Exposure Prevention Plan.
• Secured COVID-19 testing resources for employees and conducted contact tracing
for all positive cases.
• Assisted in the development and implementation of a short- and long-term
Engineering Controls Plan in conjunction with the Planning group and a consultant.
• Maintained regular and ongoing communication with bargaining unit
representatives and employees on changes, updates, and general information
related to COVID-19.
• Tracked COVID-19 vaccinations among Central San employees.
• Transitioned recruitment activities, including testing, to a virtual format.
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FYs 2019-20 and 2020-21 Strategic Targets and Performance
FY 2019-20 FY 2019-20 IFY 2020-2021
Goal Metric Target Performance IFY 2020-21 Target Performance
as of •
100%
Employees Attending of Staff Due N/A
Customer Service 100% for Training ��� (Not a Metric in the
Training (New Employees FYs 2020-22 Strategic Plan)
within 6 Months
of Employment)
.• . Average Time
to Fill Vacancy <_60 Days 54 Days � <_60 Days 86 Days J�r
(From Request to Hire)
.• Turnover Rate at or
<_4.8% <_7.8%
(FY 2015-16 r r
�#9 Below Industry 5.09% ;�; (FY 2017-18 Industry 2.6% ;H;
Industry
Average Median) Median)
Average Annual ?7.5 Hours >_15 Hours
Training Hours Per Full-Time 23.9 ,or Per Full-Time 2.5 ,Hr
r
Equivalent ; ■
(External and Internal Hours/FTE Equivalent Employee Hours/FTE
Training) Employee (FTE)
(FTE)
Actual Versus N/A
Budgeted Usage of >_80.0% 64%* Jr (Not a Metric in the
Training Dollars FYs 2020-22 Strategic Plan)
Participation in Annual Increase by +14% i Increase by 10% Each N/A
raw Wellness Expo 10%Each Year '�r Year (Expo not held)
.. . Internal Promotions
>_25% 69% r >_25% 67% i�r
(Excludes Entry-Level ,A■ U r
Positions)
Formal Grievances ■ r Zero Grievances Zero r
Zero(0) Zero(0) '�r Grievances
Filed ' ' Processed '
Processed
Performance 100%Completion of
Evaluations 100% 100% �a; Annual Performance 93% �
Completed on Time Evaluations
<_6.8
Employee Injury and (Bureau of Labor <_4.0(via BLS)
Statistics(BLS) � IF
Illness Lost Time 2.57 ,Ar 0.0 , r
%mow California Sewage
Incident Rate Treatment Facilities <_3.4(via AWWA)
Rate)
* Performance may have been affected by travel restrictions and event postponements due to COVID-19, impacting the
fourth quarter of FY 2019-20 and FY 2020-21.
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FY 2021-22 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.
Ensure Adequate Staffing and Implement the Career Development Program.
Training to Meet Current and
Future Operational Levels Implement enhanced performance appraisal forms and process.
Continue to work collaboratively with bargaining units to resolve workplace issues in
,Ir;l� their early stages and prevent formal grievances.
Foster Relationships Across
All Levels of Central San Complete negotiations for successor MOUS.
Investigate additional cost-effective benefits to offer to employees.
Inspire Employee Engagement
Increase visibility in job worksite and facility inspections and contractor project
oversight/design reviews.
■ Continue monitoring safety metrics, including both leading and lagging indicators to
P=i identify trends(incident reports,first aids only, near misses, inspection findings, etc.).
Meet or Exceed Safety Continue involvement in the design,planning,and safety oversight of construction
Standards projects.
Update the public address system in the Treatment Plant and CSO for effective
communication during emergencies.
SEEM
Improve and Modernize Implement a learning management system.
Operations through
Technology and Efficiency
Measures
Maximize employee safety by continuously updating and implementing the COVID-19
Exposure Prevention Plan to mirror changing guidelines.
■
Maintain a Safe Working Work closely with Management and staff to ensure employee safety and continuity
Environment for Employees of operations during the pandemic.
and the Public During the Ensure contractors comply with COVID-19 safety standards when working in the
COVID-19 Pandemic Treatment Plant.
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Budget Overview by Expense Cate o2ry f Includes Human Resources, Retirees, Safe!
FY 19-20 FY 19-20 FY 20-21 FY 20-21 FY 21-22 Budgetto BudgettoAccount DeVariance($) Variance(%
scription Budget Actual Budget Projection Budget Budget Budget&Wages $1,027,648 $865,699 $2,131,990 $2,419,845 $2,125,016 ($6,974) -0.3%
Employee Benefits 5,456,423 5,373,463 1,903,305 2,120,369 2,378,548 475,243 25.0%
Retiree Costs 1,672,359 1,649,865 4,116,343 4,072,533 2,725,597 (1,390,746) -33.8%
Purchased Property Services 131,950 69,151 114,950 87,950 98,450 (16,500) -14.4%
Repairs&Maintenance 77,200 20,412 75,700 75,700 80,700 5,000 6.6%
Hauling&Disposal 8,000 26,219 12,000 12,000 17,500 5,500 45.8%
Security 46,500 22,520 27,000 - - (27,000) -100.0%
Cleaning 250 - 250 250 250 - 0.0%
Purchased Professional,Technical& 609,950 292,091 536,150 590,921 737,900 201,750 37.6%
Other Services
Professional Services 170,950 77,550 122,500 177,530 177,500 55,000 44.9%
Technical Services 341,000 188,126 34,000 71,722 60,000 26,000 76.5%
Other Purchased Services 98,000 26,415 379,650 341,669 500,400 120,750 31.8%
Supplies&Materials
General Supplies 106,100 94,731 101,000 98,523 107,500 6,500 6.4%
Other Expenses 42,430 12,290 54,750 30,939 39,850 (14,900) -27.2%
Memberships 9,880 3,020 10,300 9,950 9,950 (350) -3.4%
Training&Meetings 28,550 6,952 37,450 16,050 21,550 (15,900) -42.5%
Miscellaneous Other 4,000 2,319 7,000 4,939 8,350 1,350 19.3%
Total Expenses $9,046,860 $8,357,290 $8,958,488 $9,421,080 $8,212,860 ($745,627) -8.3%
*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.
Personnel Requirements
EmployeesFY 2019-20
Regular Status
Actual
Human Resources&Organizational Development Manager 1.0 1.0 1.0
Human Resources Analyst 2.0 2.0 3.0
Management Analyst - 1.0 1.0
Operations Safety Specialist 1.0 2.0 1.0
Safety Officer 1.0 1.0 1.0
Senior Administrative Technician 3.0 3.0 2.0
Total 8.0 10.0 9.0
FY 2019-20
d Duration Employeesi
Actual
Temporary Human Resources Analyst 1.0 - -
Temporary Senior Administrative Technician 1.0 1.0 -
Total 2.0 1.0 -
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
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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 Operations Department.
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.
The Human Resources & Organizational Development budget for FY 2021-22 is $8.2 million, reflecting
an 8.3% decrease from a budget of$9.0 million in FY 2020-21. The budget decrease is largely
attributable to an increase in the assumed vacancy factor from 2%to 3% and the capping of other
post-employment benefits (OPEB) contributions at the actuarially determined contribution (ADC)
amount in FY 2021-22. Certain costs relating to all Central San employees or retirees are centrally
budgeted in the Human Resources & Organizational Development Division. The following are items
budgeted in Human Resources but not specific to that division:
• Salaries & Wages includes $750,000 for Accrued Compensated Absences Expenses and $400,000
for Payouts of Accrued Compensated Absence at retirement or termination otherwise of
employment.
• Employee Benefits includes $50,000 for Unemployment Expenses.
• The Normal Cost as well as unfunded actuarial accrued liability (UAAL) attributable to Central San's
OPEB plans are reported solely within this Division in a separate cost center. 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 (reported in "Employee Benefits"), attributable to current active employees, and a
"UAAL" component (reported in "Retiree Costs") attributable largely to unfunded retiree costs. For
improved transparency and cost tracking purposes the budgeted cost of retiree health premiums is
split between its normal cost and UAAL components in accordance with the independently
calculated ADC. In FY 2021-22, the total estimated cost of retiree health premiums is $4.3 million,
reflecting a 4.9% increase from the $4.1 million budgeted in the prior year. However, given the
strong funded position of Central San's OPEB Plan, budgeted OPEB costs are capped at the ADC,
which is $3.3 million in FY 2021-22. OPEB costs are "capped" as any costs above the ADC ceiling are
eligible for reimbursement from the OPEB trust.
• Retiree Costs also includes the costs for supplemental pension and OPEB trust payments. Prior to
FY 2019-20, supplemental OPEB trust payments were needed to meet the annual ADC as retiree
benefit premiums fell short of the independently calculated ADC. With the transition to CalPERS
Health in FY 2019-20, the funded status of Central San's OPEB plan has increased tremendously, to
the point where the retiree health premiums (i.e. the "pay-as-you-go" costs) are over$1 million
higher than the ADC in FY 2021-22. Accordingly, there is no required OPEB trust payment to fully
satisfy the ADC in FY 2020-21. The FY 2021-22 budget does include a $1.25 million supplemental
trust contribution to be directed towards either pension or OPEB at the discretion of the Board
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once Central San's actual financial condition is reviewed upon the acceptance of the FY 2020-21
audited financial statements in November of 2021.
• The Salaries & Wages, Employee Benefits and Retiree Benefits budget line item categories each
include an estimated vacancy factor credit for the Executive Governance and Administration
Departments. The FY 2021-22 budget assumes a 3.0%vacancy factor, compared to 2.0% used in
the prior year.
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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.
During this past challenging year, the Administration Department was able to continue its operations
and services during the COVID-19 pandemic while complying with evolving County and State health
orders as they were updated throughout the year. Many Administration Department staff teleworked
to accomplish their responsibilities.
In FY 2020-21, much of the work under the Office of the Director of Finance &Administration related
to the completion of the effort to replacement the ERP system, which has run Central San's core
business processes since 1993. The Core Financial modules were implemented in the first quarter of
FY 2020-21, with the Budget and Payroll modules implemented in the third quarter. Information
Technology and Engineering staff continued the implementation of a new permitting system, with this
module's go-live date deferred to FY 2021-22. Other important work included exploration of
continued methods for the prudent funding of unfunded liabilities and Other Post-Employment
Benefits, as well as Federal Emergency Management Agency (FEMA) reimbursement for COVID-19
related expenses. This office now also oversees the coordination of Strategic Planning efforts as well
as the Benchmarking Study.
For the avoidance of duplicative material, the FY 2020-21 Strategic Accomplishments and performance
against the key metrics, as well as the FY 2021-22 Strategic Objectives, for the Director of Finance &
Administration 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 Director of Finance and
Administration.
Budget Overview by Expense Category
Account Description FY 19-20 FY 19-20 FY 20-21 FY 20-21 FY 21-22 Budget Budget
Budget Actual Budget Projection Budget Variance($) Variance(%
Salaries&Wages $ $ $382,081 $451,708 $483,997 $101,916 26.7%
Employee Benefits 100,557 109,492 128,480 27,923 27.8%
Retiree Costs 86,869 117,803 121,234 34,364 39.6%
Supplies&Materials
General Supplies 1,000 531 1,000 - 0.0%
Other Expenses 8,525 798 2,400 (6,125) -71.8%
Memberships 925 - 350 (575) -62.2%
Training&Meetings 7,100 798 1,550 (5,550) -78.2%
Miscellaneous Other 500 - 500 - 0.0%
Total Expenses $- $- $579,032 $680,332 $737,111 $158,079 27.3%
*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.
** FY 2019-20 budgeted and actual expenditures for this function were included in other Divisions for that year.
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Personnel Requirements
FY 2019-20
Regular Status Employees Year-End FY 2020-21 FY 2021-22
Actual
Director of Finance &Administration 1.0 1.0 1.0
Senior Administrative Assistant 1.0 1.0 1.0
Senior Administrative Technician - - 1.0
Total 2.0 2.0 3.0
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 2021-22 is $0.7 million,
reflecting a 27.3% increase over the prior year budget. The increase is primarily attributable to a
Senior Administrative Technician position being transferred from the Office of the General Manager in
FY 2021-22 to better reflect the administrative divisions being served by this position. 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 used by all of
Central San.
FY 2020-21 Strategic Accomplishments
GOALONE CUSTOMER AND COMMUNITY
• Developed digital learning Pipe Protectors program, serving 5,800 students with a hands-
on, science-based curriculum that was presented via online learning formats.
• Developed, wrote, and filmed the "Adventures with Toot: Disappearing Act"video to
supplement Central San's elementary school education program.
• Continued to increase followers and impressions on YouTube, Facebook,Twitter,
Instagram, and Linkedln.
• Produced and distributed Pipeline newsletter to inform customers about major
infrastructure projects and share pollution prevention information.
• Received the 2020 Excellence in Public Information and Communications (EPIC) award
for best newsletter from California Association of Public Information Officials.
• Led Central San's advocacy efforts at the national, state, and local levels.
• Launched a new drone program to capture photographs and videos of facilities for
education, outreach, and operational assessments, including securing necessary
licenses and authorizations from the Federal Aviation Administration.
• Supported Central San's transition to by-area elections through assisting with
planning and promotion of public workshops and coordinating community outreach
on the proposed changes.
• Received awards from California Association of Public Information Officials for
Photography and Social Media Campaign.
• Awarded Community Engagement and Outreach Project of the Year from the
California Water Environment Association, San Francisco Bay Section for the virtual
plant tour and virtual student education programs.
• Developed virtual event website supporting the celebration of Central San's 75th
Anniversary.
ENVIRONMENTAL STEWARDSHIP
i�; • 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.
• Worked with the Board of Directors to pursue policy efforts at the state and national
level that promoted pollution prevention, producer responsibility and proper wipes
labeling.
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AGILITY AND ADAPTABILITY
• Co-coordinated Central San's response to the COVID-19 pandemic, ensuring essential
services remained intact while protecting staff,the public, and the environment.
• Adjusted to providing virtual treatment plant tours, speakers bureaus, and student
education programs, thereby maintaining our levels of outreach and education
during COVID-19 pandemic restrictions.
• Provided regular updates at Board meetings on the pandemic and its impacts on
Central San.
• Produced monthly Lateral Connection employee newsletter in new digital magazine
format to keep employees informed and engaged, even while working remotely.
FYs 2019-20 and 2020-21 Strategic Targets and Performance
Goal Metric FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 Performance
Target Performance Target as of •
Students Served by >_4 000 �+
Educational Programs per Year 6,189 ;�; >_6,000 9,167 �;
Participants in Plant/
HHWCF Tours and >_500 783500 463
Central San per Year
H: >
;
Presentations
Participants in >30 N/A
Citizens Academy, N/A* >_35 (Virtual Spring 2021
Central San Academy per Session Session Not Yet Held)
*The 2020 Central San Academy was postponed due to the COVID-19 pandemic.
FY 2021-22 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
Continue to expand outreach with residential and commercial customers, legislators,
elected officials, and sister agencies to grow and maintain relationships and advocate
for the interests of Central San's customers.
Invest in programs to inform the public and students of the need to fund necessary
ma infrastructure improvements to maintain Central San's level of service and protect public
Maintain a health and the environment through the Central San Academy, 75th Anniversary year-long
Positive virtual celebration, student education programs,tours, and more.
Reputation
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.
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Budget Overview by Expense Category
DescriptionFY 19-20 FY 19-20 FY 20-21 FY 20-21 FY 21-22 Budgetto Budgetto
Account L
Budget
Budget Actual Budget Projection Budget i Variance Variance(%
Salaries&Wages $747,972 $752,725 $784,189 $791,245 $817,232 $33,043 4.2%
Employee Benefits 192,229 222,394 194,341 217,349 215,874 21,533 11.1%
Retiree Costs 220,602 232,427 248,971 255,001 253,207 4,236 1.7%
Purchased Property Services
Repairs&Maintenance 1,000 - 1,000 500 1,000 - 0.0%
Purchased Professional,Technical& 705,000 521,249 786,000 555,183 777,500 (8,500) -1.1%
Other Services
Professional Services 3,500 3,278 6,500 4,475 6,500 0.0%
Technical Services 306,000 254,784 263,500 236,378 263,500 0.0%
Other Purchased Services 395,500 263,188 516,000 314,330 507,500 (8,500) -1.6%
Supplies&Materials
General Supplies 61,675 44,538 62,050 68,439 67,050 5,000 8.1%
Other Expenses 52,430 30,055 51,530 22,094 52,180 650 1.3%
Memberships 20,230 13,486 21,280 21,280 21,980 700 3.3%
Training&Meetings 27,200 14,645 26,250 660 26,200 (50) -0.2%
Miscellaneous Other 5,000 1,925 4,000 154 4,000 - 0.0%
Total Expenses $1,980,908 $1,803,388 $2,128,081 $1,909,811 $2,184,043 $55,962 2.6%
*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
Regular Status Employees Year-End IFY 2020-21 IFY 2021-22
Actual
Communication Services and
1.0 1.0 1.0
Intergovernmental Relations Manager
Community Affairs Representative 3.0 3.0 3.0
Graphics Technician 1.0 1.0 1.0
Digital Content Specialist 1.0 1.0 1.0
Total 6.0 6.0 6.0
IFY i
EmployeesLimited Duration
Actual
Graphic Design Summer Student - 1.0 1.0
Intern 1.0 1.0 1.0
Total 1.0 2.0 2.0
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Budget Modifications and Contributions to Key Priorities
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. The Communication Services and Intergovernmental Relations
Division Operating Budget for FY 2020-21 is $2.2 million, reflecting an increase of approximately 2.6%
over the prior year budget. Salaries & Wages include the agency-wide cost-of-living adjustment and
increases due to step advancements.
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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 (SSC) and all other revenues, pension, and
capital assets. It is also responsible for the development and monitoring of the budget and coordinates
this process with all other divisions at Central San. Various interim and annual financial reports are
prepared, reviewed, and analyzed by this division and provided to the Board, Finance Committee, and
management as essential information 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, 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 2020-21 Strategic Accomplishments
•` FISCAL RESPONSIBILITY
• Contributed an additional $2.15 million in budgetary savings to the newly
established Rate Stabilization Fund (RSF) reserve account in the Running Expense
fund to help hedge against the adverse impacts of cost pressure volatility on SSC
stability. The current balance of the Running Expense and Sewer Construction
funds' RSF accounts is now $3.76 million and $1.00 million respectively.
• Fully funded the Other Post-Employment Benefits (OPEB) actuarially determined
contribution (ADC) with an estimated $1.95 million going towards the drawing
down the unfunded actuarial accrued liability (UAAL). The OPEB plan reported a
healthy funded status of 87.1% as of the fiscal year ended 6/30/20.
• 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. With the inclusion of section 115 trust assets, the
pension plan reported a healthy funded status of 85.8% as of the fiscal year ended
6/30/20.
• Rolled out a completely restructured 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 of the budget and accountability with FY 2020-21 projected to close
under budget.
• Received the GFOA Certificate of Achievement for Excellence in Financial Reporting
award for the 20th consecutive year.
• Received the GFOA Distinguished Budget Presentation award for the 3rd
consecutive year following Central San's first ever submission three years ago.
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• Received an unmodified ("clean") audit opinion and zero reported material
weaknesses or significant deficiencies in internal controls as part of the annual
financial audit.
GOAL INNOVATION AND OPTIMIZATION/AGILITY AND ADAPTABILITY
• Spearheaded the implementation of a state-of-the art fully integrated cloud-based
enterprise resource planning (ERP) system. This system was particularly useful
during Central San's response to the COVID-19 pandemic, with the conversion of
several business workflows into streamlined paperless processes (i.e., approvals for
ImI invoices, p-card reports,journal entries, timecards, etc.). The new cloud-based ERP
system also facilitated the streamlined transition to a safer remote work
environment for many of Central San's administrative workforce.
FYs 2019-20 and 2020-21 Strategic Targets and Performance
IFY 2019-20 FY 2020-21 IFY 2020-21
Goal Metric FY 2019-20 Target Performa ce Performance
as . .
SSC less than
average of Bay
Area agencies
SSC Less Than
Average of Bay Area SSC plus Ad
Agencies Valorem tax
Service Affordability , r less than
Target Met ;�� Target Met ;�;
Maintained SSC Plus Ad average of Bay
Valorem Tax Less Area Agencies
Than Average of
Bay Area Agencies :50.78%of
median
household
income
Standard and Poor's AAA(S&P) AAA(S&P) AAA (S&P)
(S&P) and Moddy's AAA (S&P)/Aa1 /Aa1 ;�i / /Aa1 ;A'r
Credit Ratings (Moody's) (Moody's) Aa1 (Moody's) (Moody's) r
Debt Service >_2.0 40* >_2.0 Projected
Coverage Ratio ' r to be >2.0 ' '
174.6%
Actual Reserves as a
(O&M) Projected
100.0% 167.7% 3 r 100.0% Reserves ; ;
Percentage of Target (Sewer >100%
Construction)
Favorable
Operating Expenditures O&M
as a Percentage of >_90.0% 93.3%* ;�; >_95% Spending ���
Operating Budget Variance May
Exceed 5%
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Reported Material
Weaknesses or
Significant Deficiencies , r ;Orr
in Internal Controls as Zero (0) Zero (0) ;�� Zero (0) Zero (0) 4 r
Part of Annual Financial
Audit
Increase in Costs to the O&M
O&M Budget N/A o Spending Is iA�
(Not a Metric in the 0% , r
Beyond What Is FYs 2018-20 Strategic Plan) Below
Approved Budget
Revenue Projections N/A Revenues ,Or
Met (Not a Metric in the 100% Appear to ; r
FYs 2018-20 Strategic Plan) Be on Track
UAAL
Additional Increase in N/A Declined Per ��r
(Not a Metric in the <_5% ; r
Unfunded Liabilities FYs 2018-20 Strategic Plan) 2019
Valuation
Funds granted from N/A 100%of Working to
available state and (Not a Metric in the Requested Prepare ;A:
federal reimbursement FYs 2018-20 Strategic Plan) Funds Project
programs Documents
* Based on pre-audit FY 2019-20 figures.
FY 2021-22 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
Apply for and receive awards for budget and financial reporting from GFOA.
Maintain a Positive
Reputation
Develop and execute a high-quality budget,and ensure costs are managed within
the confines of Board-adopted budgetary constraints.
VOLA
Maintain Financial Stability Continue to support effort to manage unfunded liabilities by reporting on and
and Sustainability offering alternatives for favorable variances towards these obligations or other
priorities.
Continue to deliver reliable and relevant financial reports to decision makers,
Ensure Integrity and including monthly financial overviews, robust quarterly financial packets,the
Transparency in Financial Comprehensive Annual Financial Report, and the annual Budget.
Management
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Following the successful implementation of the state-of-the-art ERP and
Enterprise Performance Management (EPM) systems, conduct extensive staff
i��01 training to improve efficiency and usefulness of accounting, budgeting, and
Inspire Employee financial reporting function.
Engagement Seek feedback from staff on improvement of long-standing accounting and
administrative protocols.
Budget Overview by Expense Category
FY 19-20 FY 19-20 FY 20-21 FY 20-21 FY 21-22 Budgetto Budgetto
Budget Actual Budget Projection Budget Budget Budget
Salaries&Wages $1,232,280 $968,740 $1,144,873 $1,048,450 $1,037,047 ($107,826) -9.4%
Employee Benefits 373,193 286,161 379,502 313,699 405,178 25,676 6.8%
Retiree Costs 311,815 258,389 340,336 313,198 326,978 (13,358) -3.9%
Purchased Property Services
Repairs&Maintenance 1,000 - 1,000 500 1,000 0.0%
Purchased Professional,Technical& 447,700 188,877 361,600 277,634 334,600 (27,000) -7.5%
Other Services
Professional Services 250,500 46,484 170,500 93,163 116,600 (53,900) -31.6%
Technical Services 42,600 3,065 - - - - -
Other Purchased Services 154,600 139,328 191,100 184,471 218,000 26,900 14.1%
Supplies&Materials
General Supplies 10,000 7,360 10,000 5,296 8,400 (1,600) -16.0%
Other Expenses 35,312 5,386 19,500 8,120 19,000 (500) -2.6%
Memberships 22,365 1,666 2,400 2,350 2,000 (400) -16.7%
Training&Meetings 10,250 3,005 16,500 4,830 16,000 (500) -3.0%
Miscellaneous Other 2,697 715 600 940 1,000 400 66.7%
Total Expenses $2,411,300 $1,714,913 $2,256,811 $1,966,898 $2,132,203 ($124,608) -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.
Personnel Re uirements
FY 2019-20
Regular Status Employees Year-End FY 2020-21 FY 2021-22
Actual
Finance Manager 1.0 1.0 1.0
Accounting Supervisor 2.0 2.0 2.0
Accountant 2.0 2.0 2.0
Accounting Technician 2.0 3.0 3.0
Total 7.0 8.0 8.0
EmployeesFY 2019-20
Limited Duration
Temporary Accountant 1.0 - -
Temporary Accounting Technician 1.0 1.0
Temporary Senior Internal Auditor 1.0 -
Total 3.0 1.0
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Budget Modifications and Contributions to Key Priorities
The Finance Division supports Central San by providing accounting, financial reporting, budget,
treasury, and other fiscal services. The Finance Division is responsible for designing and implementing
internal controls to safeguard Central San's public assets, as well as providing relevant and reliable
financial information to internal and external stakeholders. The Finance Division works closely with the
Planning & Development Services Division to ensure sufficient long-term rate and debt financing is
available achieve Central San's strategic objectives. The Finance 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. With the implementation of the new ERP system during FY 2020-21, the Finance
Division will be rolling out extensive staff training to take advantage of capabilities of the modern
system and strive to improve financial reporting and accounting services during FY 2021-22.
The Finance Division Operating Budget for FY 2021-22 is $2.1 million, which represents a reduction of
5.5%from the prior year budget. This reduction is primarily attributable to turnover of tenured staff
and the assumption that a District temporary position will no longer be necessary for much of
FY 2021-22 following the successful "go-live" of the new ERP system during FY 2020-21. Salaries &
Wages also includes the agency-wide cost-of-living adjustment as well as any step advancements
employees may be eligible for. With the hiring of a full-time internal auditor, budgeted in the Office of
the General Manager unit, contracted internal audits included in the prior year's budget are no longer
needed in the Finance Division.
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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 leads the
improvement and automation of business processes agency-wide using technology.
FY 2020-21 Strategic Accomplishments
■ , CUSTOMER AND COMMUNITY
• Awarded Municipal Information Systems Association of California (MISAC) Award
for Excellence in IT Practices for the fourth year in a row. In addition, the IT
Manager received the MISAC President's Award.
■ i INFRASTRUCTURE RELIABILITY
• Completed migration of equipment from outdated Data Center to newly
constructed and modern Data Center.
• Implemented backup solution for cloud-based documents and infrastructure.
• Replaced wireless access points throughout most buildings.
• Implemented redundant internet access capabilities to facilities and doubled
internet connection speed.
• Improved security with Advanced Threat Protection tools.
• Conducted phishing prevention training exercises for all staff.
•' INNOVATION AND OPTIMIZATION
• Coordinated the implementation of the following ERP modules: Financials,
Procurement, Contracts, Projects, Core HR, Employee Self-Service, Time & Labor,
Absences, Benefits, Payroll, Budgeting, Goals & Performance, and Employee
Learning.
• Replaced and modernized the audio/visual systems in the Board Room and Multi-
Purpose Room (MPR).
• Implemented new video security software used throughout Central San facilities.
• Selected consultant for the Technology Strategic Plan.
' AGILITY AND ADAPTABILITY
• Expanded technology, including adding phone-calling capability to Microsoft Teams,
and swiftly acquired laptops to support teleworking during the COVID-19 pandemic.
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FYs 2019-20 and 2020-21 Strategic Targets and Performance
FY • 2020-21 FY 2020-21
Goal Metric Target Performance Target Performance
as . •
Information System 99.9% , r 100% , r
�
Outages Affecting Normal 100%Uptime Uptime `�' Uptime 100% Uptime �e;
Business Operations
® Data Backup and Zero(0) Zero(0) Zero(0) Zero(0) :A:
It' Recovery Lost Data Lost Data ' 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:
Goal/StrategyObjective
Deliver High-Quality Customer
Service Continue improving and optimizing the newly implemented Oracle ERP System,which is
being used by business units throughout Central San and improves financial reporting
and tracking capabilities.
Maintain Financial Stability
and Sustainability
' Implement new security tools to increase protection against ransomware and other
Protect Personnel and Assets threats.
from Threats and Emergencies
Replace desk phones with new digital phones equipped with advanced mobile and
collaboration features.
Improve and Modernize
Operations through
Technology and Efficiency Explore options to replace billing system.
Measures
Complete District-wide Technology Master Plan.
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Budget Overview by Expense Category
FY 19-20 FY 19-20 FY 20-21 FY 20-21 FY 21-22 Budgetto BudgettoAccount DeVariance($) Variance I%)
scription Budget Actual Budget Projection Budget Budget Budget&Wages $1,661,338 $1,548,763 $1,758,890 $1,620,839 $1,795,621 $36,731 2.1%
Employee Benefits 688,200 572,525 695,355 495,966 729,350 33,995 4.9%
Retiree Costs 524,113 504,405 574,924 540,997 572,097 (2,827) -0.5%
Purchased Property Services
Repairs&Maintenance 957,414 884,364 1,294,101 1,586,426 879,530 (414,571) -32.0%
Purchased Professional,Technical& 110,000 1,704 56,500 4,773 576,496 519,996 920.3%
Other Services
Professional Services - - 6,500 4,475 6,500 - 0.0%
Technical Services 110,000 1,704 50,000 298 569,996 519,996 1040.0%
Supplies&Materials 117,000 153,347 121,500 286,180 711,796 590,296 485.8%
Utilities&Fuel 109,500 143,995 112,000 143,680 142,000 30,000 26.8%
General Supplies 7,500 9,352 9,500 142,500 569,796 560,296 5897.9%
Other Expenses 35,525 12,293 26,050 22,870 27,200 1,150 4.4%
Memberships 375 390 500 1,670 1,650 1,150 230.0%
Training&Meetings 34,950 11,265 24,950 20,500 24,950 - 0.0%
Miscellaneous Other 200 638 600 700 600 - 0.0%
Total Expenses $4,093,590 $3,677,401 $4,527,320 $4,558,051 $5,292,090 $764,770 16.9%
*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.
Personnel Re uirements
FY 2019-20
Regular Status Employees Year-End FY 2020-21 IFY 2021-22
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 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 2021-22 is $5.3 million, reflecting an
increase of 16.9% over the prior year's budget. The increase is mostly attributable to an expansion in
technical services next year to support new initiatives. New initiatives not included in the prior year's
budget include: long-term support for the new state-of-the-art Oracle Cloud Fusion ERP system, new
security services to address an environment of increasing digital threats, a new integrated permit-
tracking system, expanded scanning services, as well as other new information technology-related
contracted services. The reduction in the Repairs & Maintenance line is largely offset by an increase in
the Supplies & Materials line, in an attempt to separate software license from software-as-a-service
(SAAS) costs for improved tracking and reporting purposes.
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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 2020-21 Strategic Accomplishments
CUSTOMER AND COMMUNITY
• Received the Achievement of Excellence in Procurement Award for the 10th
consecutive year, recognizing organizational excellence in public purchasing.
• Processed over 400 procurement requests while maintaining an average five-star
rating on internal customer satisfaction surveys.
• Executed all contract renewals on time, ensuring uninterrupted service and
reducing risk.
• Maintained consistent and timely deliveries throughout Central San for needed
supplies as well as mail delivery services.
• Formalized the process for requesting new items to stock, providing greater
transparency and status updates.
• Continued providing Maintenance staff with inventory usage reports to aid in
budgeting and planning.
FISCAL RESPONSIBILITY
• Leveraged spend through annual requirements contracts for 38% 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.
• Maintained proper inventory levels to avoid depleting inventory of equipment spares
and supplies.
• Continued to collaborate with Maintenance staff to identify and remove obsolete
spare parts from the inventory to reduce storage costs.
M� • • ' WORKFORCE DEVELOPMENT
��� • Implemented business process changes, cross-training, and redistribution of work
IA1
to strategically ensure that procurement resources are being utilized efficiently.
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INNOVATION AND OPTIMIZATION
• Utilized electronic signature technology for all contracts and agreements,
increasing functionality, visibility, and tracking; improving processing time;
reducing the use of paper; and allowing for a seamless telework transition during
COVID-19.
• Assisted the ERP implementation with critical data validation and correction for
successful conversion of all open contracts, purchase orders, and inventory data from
the existing SunGard system into the new Oracle ERP.
• Trained staff agency wide on utilization of the new ERP procurement module.
AGILITY AND ADAPTABILITY
• Prioritized and resolved various urgent requests for procurements related to the
■ COVID-19 pandemic, such as critical technology, workstation alterations,
disinfecting services, filters, personal protective equipment (PPE), sanitizers, and
cleaning products.
• Ensured adequate and sufficient stock levels for required PPE supplies to
accommodate all Central San staff despite the shortages and sourcing challenges
during COVID-19.
FYs 2019-20 and 2020-21 Strategic Targets and Performance
Goal IFY 2019-20 IFY 2019-20 FY 2020-21 2020-21 Performance
Target Performance Target as of •
Purchasing Internal N/A
Customer Survey Rating >_70% 100%Viai r Not a Metric in the
of Satisfactory or Better FYs 2020-22 Strategic Plan
Difference in Inventory
Value in Purchasing „ , 0.62% + F
Database vs.Value <_1% 1.23% ;�; <_1% in Q1* '�r
Submitted to
Accounting
,. Accuracy of Physical
0
Inventory Count >_95% 98.9% ;fl; >_95% 97/** ;�;
vs. Book Value in Q1
Average time to
Execute Engineering
Faffla Agreements from (Not a Metric in the 152 weeks Data not yet available in
Complete Package Oracle
Submittal or Board FYs 2018-20 Strategic Plan)
Approval
* ERP migration performed September 2020 which rendered this metric obsolete since all data now resides in one database in Oracle,as
opposed to the two databases in HTE,which required a monthly reconciliation.
**Data not yet available in Oracle for Q2.
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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:
L;alJLStrgtegy W%,
Ensure that all "request to stock"submittals are reviewed and decided upon
within three business days.
Deliver High-Quality Continue to be a valuable resource by assisting Maintenance and Plant staff with
Customer Service ad hoc inventory needs, including partnering with Maintenance on storeroom best
practices and methods.
Maintain Financial Maintain a physical inventory accuracy count rate of 95%on all inventory class
Stability and items (A, B, and C), supplies, and equipment.
Sustainability
Continue to promote open competition and equal opportunity for qualified
Ensure Integrity and suppliers and service providers by successfully soliciting and awarding high-level
Transparency in Financial service and commodity-based contracts.
Management
Execute Long-Term Assist in relocating the Solids Building inventory to new location.
Capital Renewal and
Replacement Program
Further improve workflow using electronic signature technology and digital
transaction management services to integrate with the document management
system, providing greater efficiency through workflow automation, and electronic
Improve and records storage.
Modernize Operations Continue refining the use of the ERP software to improve procedures, align with
through Technology industry best practices, and develop new administrative procedures to document
and Efficiency the updated processes.
Measures Implement a barcode inventory program to fully automate all issues, receipts, and
inventory cycle counts.
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Budget Overview by Expense Category
FY 19-20 FY 19-20 FY 20-21 FY 20-21 FY 21-22 Budgetto BudgettoAccount Description Budget Actual Budget Projection Budget Budget Budget&Wages $1,165,618 $915,308 $1,108,279 $1,012,941 $1,178,139 $69,860 6.3%
Employee Benefits 475,397 331,607 437,676 257,277 445,199 7,523 1.7%
Retiree Costs 345,573 267,073 333,314 287,100 302,946 (30,368) -9.1%
Purchased Property Services 24,000 10,000 21,000 6,000 6,000 (15,000) -71.4%
Repairs&Maintenance 23,000 10,000 20,000 5,000 5,000 (15,000) -75.0%
Rentals 1,000 - 1,000 1,000 1,000 - 0.0%
Purchased Professional,Technical& 84,000 36,004 77,000 77,000 87,000 10,000 13.0%
Other Services
Professional Services 35,000 32,213 36,000 36,000 36,000 - 0.0%
Technical Services 48,000 3,791 40,000 40,000 50,000 10,000 25.0%
Other Purchased Services 1,000 1,000 1,000 1,000 - 0.0%
Supplies&Materials
General Supplies 14,000 8,026 14,000 13,438 15,438 1,438 10.3%
Other Expenses 14,900 3,013 14,900 10,665 14,900 - 0.0%
Memberships 3,800 2,432 3,700 3,700 3,700 0.0%
Training&Meetings 10,500 581 10,500 10,500 10,500 0.0%
Miscellaneous Other 600 - 700 -3,535 700 - 0.0%
Total Expenses $2,123,488 $1,571,030 $2,006,169 $1,664,420 $2,049,622 $43,453 2.2%
*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.
Personnel Requirements
Regular Status Employees Year-End FY 2020-21 FY 2021-22
Actual
Purchasing and Materials Manager 1.0 1.0 1.0
Senior Buyer 2.0 2.0 2.0
Senior Materials Coordinator 2.0 2.0 2.0
Buyer 1.0 1.0 1.0
Materials Services Supervisor 1.0 1.0 1.0
Materials Coordinator 1.0 1.0 1.0
Total 8.0 8.0 8.0
EmployeesFY 2019-20
Limited Duration
Actual
Temporary Senior Buyer 1.0 1.0 -
Temporary Inventory Specialist - - 1.0
Temporary Materials Coordinator 1.0 1.0 1.0
Warehouse Summer Student - 1.0 -
Total 2.0 3.0 2.0
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Budget Modifications and Contributions to Key Priorities
The Purchasing and Materials Services Division strives to address the overall challenges facing Central
San by working to ensure there is sufficient procurement processing capacity in light of increased
contracting for infrastructure needs. During FY 2020-21, the Purchasing and Materials Services Division
implemented new purchasing and inventory modules of the new ERP system, 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.
The Purchasing and Materials Services Division Operating Budget for FY 2021-22 is $2.0 million, which
represents an increase of 2.2% over the prior year budget. Salaries & Wages include the agency-wide
cost-of-living adjustment as well as assumed merit increases for any eligible employees. The
FY 2021-22 budget also includes two temporary workers in the inventory warehouse to help alleviate
the temporary expanded workload arising from several new initiatives. New initiatives for which the
additional resources are needed include: ongoing troubleshooting and refining of the new ERP
inventory management sub-module, higher volume of inventory management needs arising from the
solids handling capital project, as well as the implementation of an radio frequency (RF) barcode
system to be integrated with the ERP system.
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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 and 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 2020-21 Strategic Accomplishments
• FISCAL RESPONSIBILITY
• Managed claims aggressively to reduce costs and facilitate resolution, resulting in an
average cost per overflow claim of$7,240.
• Continued to debrief after losses to identify and implement preventive measures.
• Updated insurance requirements for goods and services contracts.
• Continued the Enterprise Risk Management program with periodic updates to the Board.
• Implemented EBIX, a certificate management platform to increase compliance and
reduce cost.
` INFRASTRUCTURE RELIABILITY
• Presented an Emergency Management Program report to the Board.
• Implemented Everbridge, an emergency notification system.
• Participated in the Operational Area Council to contribute to creating an effective and
multijurisdictional approach to disaster preparedness and planning.
• Installed additional access control devices.
• Increased security guard presence on main campus.
P' AGILITY AND ADAPTABILITY
M • Updated Pandemic Response Plan and presented to the Board.
■
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FYs 2019-20 and 2020-21 Strategic Targets and Performance
FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21
Goal Metric Target Performance Target Performance
as . .
Workers'
MOM Compensation <_1.0 1.06 J r <_1.0 1.10 J r
Experience Modifier
Temporary Modified >95%of >_95%of
Duty Provided .Ar ,�r
Recordable 93.3%* rr Recordable 100%
(Return to Work Injuries Injuries
Program)
Funds Granted from
.• Available State and N/A 100%of COVID-19 r
Federal (Not a Metric in the Application in ���
■ FYs 2018 20 Strategic Plan Requested Funds Progress Reimbursement g• ) g
Programs
* COVID-19 prevented immediate availability of temporary modified duty for one situation,but it was made available as soon as
circumstances permitted,with temporary modified duty back at 100%at the end of the FY.
FY 2021-22 Strategic Objectives
In the coming fiscal year, this division will play a major part in supporting Strategic Plan Goals and
Strategies through the following objectives:
Objective
'^, Maintain an average cost per overflow claim of:5$25,000.
Maintain Actively seek opportunities to reduce risk in extant and developing business processes.
Financial
Stability and
Sustainability Expand scope of Enterprise Risk Management process.
Incorporate emergency response activities into Emergency Operations Plan and Continuity of
Operations where applicable.
Protect
Personnel and Continue implementation of recommendations from security assessment.
Assets from
Threats and Finalize security system design criteria for use in upcoming capital projects.
Emergencies
Complete review and update of the Continuity of Operations Plan.
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Budget Overview by Expense Category
Budget
FY 19-20 FY 19-20 FY 20-21 FY 20-21 FY 21-22 Budgetto toAccount DeVariance($) Variance
scription Budget Actual Budget Projection Budget Budget Budget&Wages $286,980 $275,257 $305,518 $289,568 $314,792 $9,274 3.0%
Employee Benefits 122,766 112,278 126,307 122,369 135,449 9,142 7.2%
Retiree Costs 91,484 91,925 101,438 99,880 101,697 259 0.3%
Purchased Property Services 89,000 49,070 430,000 392,500 465,000 35,000 8.1%
Repairs&Maintenance 44,000 23,513 45,000 10,000 10,000 (35,000) -77.8%
Security 40,000 21,367 385,000 382,000 455,000 70,000 18.2%
Rentals 5,000 4,189 - 500 - - -
Purchased Professional,Technical&
429,350 386,429 179,000 21,000 85,000 (94,000) 52.5%
Other Services
Professional Services 21,350 47,374 51,000 21,000 45,000 (6,000) -11.8%
Technical Services 408,000 339,055 88,000 - - (88,000) -100.0%
Other Purchased Services - - 40,000 - 40,000 - 0.0%
Supplies&Materials 6,000 6,739 19,000 26,000 54,000 35,000 184.2%
Utilities&Fuel - - 10,500 24,000 35,000 24,500 233.3%
General Supplies 6,000 6,739 8,500 2,000 19,000 10,500 123.5%
Other Expenses 842,295 837,553 467,200 554,300 19,700 (447,500) -95.8%
Insurance&Risk Management 825,000 825,000 450,000 550,000 - (450,000) -100.0%
Memberships 3,295 2,547 3,200 2,700 3,200 - 0.0%
Training&Meetings 11,500 10,006 11,000 - 13,500 2,500 22.7%
Miscellaneous Other 2,500 - 3,000 1,600 3,000 - 0.0%
Total Expenses $1,867,875 $1,759,250 $1,628,463 $1,505,617 $1,175,638 ($452,825) -27.8%
*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.
Personnel Re uirements
FY 2019-20
Regular Status Employees Year-End FY 2020-21 FY 2021-22
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 Division 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. The Risk
Management Division helps Central San meet these and other challenges of the environment in which
the agency operates.
The Risk Management Division's Operating Budget for FY 2021-22 is $1.2 million, reflecting a decrease
of 27.8%from the prior year's budget. This decrease is nearly entirely attributable to the
implementation of a new method to finance the self-insurance program in FY 2021-22. In prior years,
the self-insurance fund's reserves were replenished with an annual transfer/contribution from the
O&M fund. As part of a re-examination of Central San's chart of accounts and the implementation of a
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new ERP system during FY 2020-21, it was identified that total expenses was in effect inflated by
reporting a transfer from the O&M fund to the Self-Insurance fund as well as reporting costs (i.e. self-
insurance claims, insurance premiums, etc.) in the Self-Insurance fund. With each fund being self-
balancing, the aggregate picture of Central San's costs became distorted and overstated. Accordingly,
to prevent this "double counting" effect, commencing with FY 2021-22, staff is proposing to allocate
sewer service charge revenue directly to the self-insurance fund in an amount sufficient to cover
budgeted expenses and close the fiscal year with minimum reserves specified by the Board-adopted
Fiscal Reserves Policy. In doing so, a transfer from the O&M fund to the Self-Insurance fund will no
longer be required.
The total amount of sewer service charges budgeted to be allocated to the Self-Insurance fund in
FY 2021-22 is approximately $1.6 million. This is discussed in greater detail in the Self-Insurance Fund
section of the budget book.
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Page Intentionally Blank
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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
• Planning and Development Services i
,F
w
i
hl
W
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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 Capital Projects, Environmental and
Regulatory Compliance, and Planning and Development Services Divisions and the Resource Recovery
Program. Staff from these divisions make significant contributions to the Recycled Water Program
discussed in the Operations Department section of this document.
During this past challenging year with the COVID-19 pandemic, the Engineering and Technical Services
Department was able to continue providing a high level of services for Central San's customers
including the permit counter, development inspections, design and construction of infrastructure
projects, operating the Household Hazardous Waste (HHW) Collection Facility, operating the
laboratory, and conducting environmental compliance inspections—all while complying with evolving
health orders as they were updated throughout the year in response to changing risk and health
guidelines.
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, HHW, and pharmaceutical collection programs. This office was responsible
for replacing or rehabilitating eight miles of pipes in Danville, Walnut Creek, Lafayette, Martinez, and
Orinda with a 100% customer satisfaction rating (as of March 31, 2021); retrofitting the Emergency
Sludge Hauling Facility in preparation for the Solids Handling Facilities Improvements Project;
constructing major renovations at various Pumping Stations and Central San's Recycled Water Filter
Plant, in addition to completing other projects, such as the Concrete and Mechanical Improvements at
the treatment plant; and preventing 1,577,000 pounds of HHW (collected through January 2021) from
entering local waterways through collection at the HHW Collection Facility. This year also saw the
continued development and implementation of the Central San Smart initiative, which will drive
system-wide optimizations to make Central San a more efficient utility. The Asset Management
Program, overseen by this office, continues to develop innovative tools such as the Geographic
Information System (GIS) Emergency Response Dashboard and Reliability Engineering Tools.
The FY 2020-21 Strategic Accomplishments and performance against the key metrics, as well as the
FY 2021-22 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,
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reducing reliance on non-renewable energy through cost-effective alternative methods such as the
Solar Energy Project on the Lagiss Property, and leveraging data to improve operations by becoming a
smart utility. 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.
FY 2020-21 Strategic Accomplishments — Resource Recovery Program
'' * ENVIRONMENTAL STEWARDSHIP
• Completed the procurement process and obtained Board approval for a Power
1' Purchase Agreement(PPA)for a 1.75-megawatt solar energy project that exceeds the
cost-effectiveness criteria in Central San's Energy Policy and completed the
environmental review process for the project.
• Continued leading the Refinery Recycled Water Exchange Project to augment the
region's water supply.
INNOVATION AND OPTIMIZATION
• Held quarterly meetings of the Central San Smart Steering Committee to identify
projects to optimize operations, improve asset management, increase energy
efficiency and safety, and reduce facility management costs.
• Collaborated with IT staff to incorporate Central San Smart initiative projects into the
upcoming update of the IT Master Plan.
FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets -
Resource Recovery Program
FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21
..
l Metric Target Performance Target Performance
as . .
>_18 Million
kWh (kilowatt hour)of kWh per Year >_18 Million kWh 23.0
Electricity Produced by (Reported as a 22.2 ,or per Year Million qr
Million
Cogeneration Using Rolling kWh t ' (Reported as a kWh ' '
Natural Gas Average) Rolling Average)
>_220,000 kWh >220 000 kWh
kWh of Solar Power Per Year 271,000
Produced at CSO and (Reported as a 284,000 v r Per Year kWh ; ;
the HHWCF Rolling kWh i r (Reported as a
Average) Rolling Average)
kWh of Solar Power
Produced by a New N/A >_2.5 million kWh Construction of the solar
Solar Array Near the (Not a Metric in the FYs 2018-20 (reported as a array is estimated to
Treatment Plant Strategic Plan) rolling average) begin in Fall 2021
Campus
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Projects initiated under N/A ��r
Central San Smart (Not a Metric in the FYs 2018-20 >_3 4
r
Strategic Plan)
FY 2021-22 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
For Central San's solar vendor(REC Solar/Duke Energy)to complete construction of a cost-
effective 1.75 MW solar energy project and for Central San to begin purchasing solar energy
Reduce Reliance on under its PPA.
Non-Renewable Energy
Continue coordination with the IT Master Plan and commence at least three projects as part
Implement the of the Central San Smart initiative.
Central San Smart
Initiative
Budget Overview by Expense Category- Office of the Director of Engineering and Technical
Services (including Resource Recovery Program)
Description Pr FY 19-20 FY.79-20rFFY20-21 FY 20-21 FY 21-22 Budget Budget
Budget Actual rojection Budget Variance($) Variance I%)
Salaries&Wages $- $- $658,616 $503,271 $626,298 ($32,318) -4.9%
Employee Benefits 161,191 47,477 166,428 5,237 3.2%
Retiree Costs 204,462 210,075 208,341 3,879 1.9%
Purchased Professional,Technical& 86,000 69,932 86,100 100 0.1%
Other Services
Technical Services 80,000 69,932 80,100 100 0.1%
Other Purchased Services 6,000 - 6,000 - 0.0%
Supplies&Materials
General Supplies 2,700 2,550 2,550 -
Other Expenses 22,414 5,828 22,477 63 0.3%
Memberships 914 1,032 847 (67) -7.3%
Training&Meetings 21,500 4,646 21,500 - 0.0%
Miscellaneous Other - 150 130 130 -
Total Expenses $- $- $1,132,683 $839,283 $1,112,194 ($20,489) -1.8%
* FY 2019-20 budgeted and actual expenditures for this function were included in other Divisions for that year.
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Personnel Requirements - Office of the Director of Engineering and Technical Services
Administrative Services Supervisor 1.0 1.0 1.0
Director of Engineering&Technical Services 1.0 1.0 1.0
LO
Total 2.0 2.0 12.0
*The above positions were presented as part of Planning and Development Services Division budget in the FY 19-20 budget and prior.
Personnel Requirements - Resource Recovery Program
Engineering Assistant III • 1.0 1.0 1.0
Program Manager 0.5 0.5 0.4
Total 1.5 1.5 1.4
*The above positions were presented as part of Planning and Development Services Division budget in the FY 19-20 budget and prior.
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 organization units were
established for director functions overseeing each department of Central San. Prior to the FY 2020-21
budget, costs associated with Department Director and Resource Recovery Program were reported
within the Planning and Development Services Division. Accordingly, as disclosed in the divisional
budget table, the FY 2019-20 budget and actual columns do not have any information to report here.
The Office of the Director of Engineering and Technical Services Budget for FY 2021-22 is $1.1 million,
reflecting a slight decrease from the prior year's budget of approximately-1.8%. This decrease is
primarily attributable to the assumed recycled water program wage and benefits transfer increasing by
10%for the program manager, increasing from 50%to 60%.
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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 2020-21 Strategic Accomplishments
CUSTOMER AND COMMUNITY
• Received 100%customer satisfaction rating for the Walnut Creek Sewer Renovations,
Phase 14 construction project.
• Received 94%customer satisfaction rating for the South Orinda Sewer Renovations,
Phase 8 construction project.
• Received 93%customer satisfaction rating for the Lafayette Sewer Renovations, Phase
14 construction project.
• Received 93%customer satisfaction rating for the Danville Sewer Renovations, Phase
3 construction project.
• Continued to coordinate construction projects with local jurisdictions and other
agencies to lessen construction impacts to the community.
ENVIRONMENTAL STEWARDSHIP
t • Initiated design of a tertiary membrane filter plant pilot to determine the best
technology to effectively produce Title 22 recycled water.
• Upgraded large standby generators to be Tier 4 Air Emissions Compliant at the
Moraga and Orinda Crossroads Pumping Stations.
• Continued to construct the Filter Plant and Clearwell projects, which will provide
reliable storage and distribution of recycled water.
FISCAL RESPONSIBILITY
• Continued 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.
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' INFRASTRUCTURE RELIABILITY
• Completed several critical projects at the treatment plant, including the Treatment
Plant Control Systems Input/Output (1/0) Replacement; Outfall Improvements, Phase
7; Emergency Sludge Loadout Facility; and Concrete and Mechanical Renovations
Project.
• Made significant construction progress on the Filter Plant and Clearwell—Phase 1A
Project, and construction of the Pump Station Upgrades, Phase 1.
• Completed sewer renovation projects in Danville, Martinez,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 Electric Blower Improvements.
INNOVATION AND OPTIMIZATION
• Completed the design and perform constructability reviews using three-dimensional
modeling under the Solids Handling Facility Improvements Project.
• Implemented online meetings and interactions to reduce travel, reduce COVID risk,
and save time.
AGILITY AND ADAPTABILITY
• Developed and enforced strict safety guidelines within all contracts for COVID-19
■ in compliance with Federal, State, and local requirements.
FYs 2019-20 and 2020-21 Strategic Targets and Performance
FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21
Goal Metric Target Performance Target Performance
as . •
..w, Customer Satisfaction >950/ ■A■ >95% r
1
Rating on Construction 96% ; 100%
Projects
Median Rating Average Rating
>_0.5%of 0.35%* >_6.0 Miles of
Miles of Pipeline Replaced Assets (5.25 :�: Sewers 8.1 Miles
(7.6 Miles miles) r Replaced or ` r
Per Year) Rehabilitated
Average time to Execute
.. Engineering Agreements N/A
Data not yet
from Complete Package (Not a Metric in the <_2 weeks available in Oracle
Submittal or Board FYs 2018-20 Strategic Plan)
Approval
Capital Expenditures as a
® Percentage of Capital 0 0 ** �. .� 0 ; '
Budgeted Cash Flow
>_90% 82/0 4 ,. >_90/a r
Including Carry Forward
89/0
Capital Expenditures as a
N/A
Percentage of Capital 0 . r
NBudgeted Cash Flow FYs 2018-20 Strategic Plan)(Not a Metric in the >_85/ ;��
Including Carry Forward
* FY 2020-21 performance up to Q3 is included in this section since the data was readily available.In the other sections of this budget
book,FY 2020-21 performance is only listed up to Q2.
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FY 2021-22 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 2021-22
KKI Successfully award and begin construction of the Solids Handling Facility Improvements
Achieve 100% Project,which will include air pollution control equipment needed to reliably comply with
Compliance in current air regulations.
All Regulations
L-t-�„ . Complete the construction of the Filter Plant and Clearwell Improvements-Phase 1A
Support Regional Project,which will include replacing critical electrical gear and increase reliability at recycled
Development of water storage facilities.
Local Water Supply
�_ Continue to use the Uniform Public Construction Cost Accounting Act to help streamline
C0-0 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.
Complete the construction of the Influent Pump Electrical Improvements Project,which will
replace the variable frequency drives(VFDs)at the Headworks Facility at the treatment
® plant.
Continue to replace sewers in poor condition and respond to urgent or emergency sewer
Execute repairs throughout the service area in a timely manner.
Long-Term Capital
Renewal and Replace sewers needing difficult or frequent maintenance to allow the Collection System
Replacement Program Operations Division to focus on other sewers and reduce sanitary sewer overflows.
Deliver projects on time and on budget using new construction management software,e-
Builder and Oracle.
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Budget Overview by Expense Category
Account Description Budget Actual Budget Projection Budget Budget Budget&Wages $1,960,752 $1,778,671 $2,135,534 $1,750,115 $2,084,090 ($51,444) -2.4%
Employee Benefits -2,238,431 -2,465,309 -2,310,273 -2,316,565 -2,209,467 100,806
Retiree Costs 595,475 598,706 692,954 625,504 638,575 (54,379) -7.8%
Purchased Property Services 4,000 4,493 223,000 4,000 4,000 (219,000) -98.2%
Repairs&Maintenance 3,000 3,493 3,000 3,000 3,000 0.0%
Security - - 219,000 - - (219,000) -100.0%
Rentals 1,000 1,000 1,000 1,000 1,000 0.0%
Purchased Professional,Technical& 35,325 17,950 35,000 32,000 35,000 0.0%
Other Services
Technical Services 34,325 17,851 34,000 30,000 34,000 0.0%
Other Purchased Services 1,000 99 1,000 2,000 1,000 - 0.0%
Supplies&Materials 52,800 84,620 54,800 44,095 55,500 700 1.3%
Utilities&Fuel 19,200 20,311 21,600 21,600 22,300 700 3.2%
General Supplies 33,600 64,309 33,200 22,495 33,200 - 0.0%
Other Expenses 45,920 30,835 52,155 12,752 54,155 2,000 3.8%
Memberships 8,520 7,266 10,155 4,627 10,155 - 0.0%
Training&Meetings 36,600 23,464 41,000 7,624 43,000 2,000 4.9%
Miscellaneous Other 800 105 1,000 500 1,000 0.0%
Total Expenses $455,841 $49,966 $883,170 $151,901 $661,852 ($221,318) -25.1%
*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.
Note:The staff in this division are budgeted with the Capital Improvements Program. As a result,the bulk 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
EmployeesIFY 2019-20
7eigular Status
Actual
Administrative Assistant 2.0 2.0 2.0
Assistant Engineer(Staff Engineer) 5.0 5.0 6.0
Assistant Land Surveyor 2.0 2.0 2.0
Associate Engineer 7.0 7.0 8.0
Capital Projects Division Manager 1.0 1.0 1.0
Contracts Specialist 1.0 1.0 1.0
Engineering Assistant 1.0 2.0 4.0
Engineering Technician III 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 -
Utility Systems Engineer 1.0 1.0 1.0
Total 28.0 29.0 29.0
EmployeesFY 2019-20
Limited Duration
Actual
Temporary Project Safety Officer - - 1.0
Temporary Senior Engineer - - 1.0
Temporary Staff Engineer 1.0 2.0 -
Temporary Utility Systems Engineer 1.0 - 1.0
Summer Student 1.0 3.0 1.0
Intern 3.0 3.0 4.0
Total 6.0 8.0 8.0
Budget Modifications and Contributions to Key Priorities
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. The Capital Projects Division budget for
FY 2021-22 is $0.7 million, reflecting a 25.1% reduction from the prior year's budget. Salaries & Wages
include the agency-wide cost-of-living adjustment as well as any anticipated increases due to step
advancements, largely offset by additional time being charged to work for capital projects. The
primary driver for this division's overall budgetary decrease is the elimination of expanded on-site
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security services included in last year's budget. Expanded on-site security services were budgeted in
the Capital Projects Division in the prior year to counteract the significant increase in non-employee
foot traffic on the treatment plant premises in conjunction with large-scale treatment plant
improvement projects, particularly for the Solids Handling Facility Improvements Project. While it is
expected these expanded security services will continue to be needed through FY 2021-22, the
adoption of a Regulatory Assets policy by the Board will allow these, and other ordinarily 110MI
non-recurring significant costs associated with capital projects to be capitalized. This year's Capital
Improvement Budget has been updated to incorporate the capitalization of these expanded on-site
security costs. The Financial Summary section includes a more in-depth discussion of the new
Regulatory Assets policy and its fiscal impacts.
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Environmental and Regulatory Compliance
OVERVIEW
This division ensures that Central San is compliant 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 Facility and
Residential Recycled Water Fill Station; generates, 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 2020-21 Strategic Accomplishments
0- ' CUSTOMER AND COMMUNITY
• Oversaw approximately 40,000 visits to the HHW Collection Facility(HHWCF) and
Residential Recycled Water Fill Station by residents, small businesses, retail partners,
and fill station users.
nt, )
ENVIRONMENTAL STEWARDSHIP
• Achieved 23rd year of continuous compliance with all National Pollutant Discharge
Elimination System (NPDES)treatment plant permit requirements governing the
discharge of treated effluent to San Francisco Bay.
• Completed Title V Authority-to-Construct permit applications for treatment plant and
pumping stations improvements and obtained permit from Division of Safety of Dams
for filter plant improvements.
• Completed pretreatment and stormwater inspections with some facility types excluded
due to the COVID-19 pandemic (e.g. medical/dental offices, assisted living facilities).
• Collected approximately 2,600,000 pounds of hazardous waste after reopening the
HHWCF at the end of the last fiscal year and during the COVID-19 pandemic.This is 35%
more than the total collected last fiscal year.The increase is partly due to the COVID-
related facility closure for 25%of last year and pent-up demand after reopening. No
reusable products were given away during the year, due to the Reuse Room remaining
closed until social distancing restrictions are lifted. (Quantities estimated from
quantities received through February 2021.)
• Collected approximately 5,000 pounds of pharmaceuticals.
• Maintained 2020 anthropogenic greenhouse gas (GHG) emissions below the Cap and
Trade inclusion threshold.
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• Reviewed and commented on proposed regulations to ensure they are both practical
and protective.
• Division Manager served on the BACWA Executive Board and staff served in
leadership roles on associated committees.
• Division Manager served as the Co-Chair of California Association of Sanitation Agencies
(CASA)'s Water Regulatory Workgroup and BACWA liaison to CASA's State Legislative
Committee.
• Completed agency-wide Spill Prevention, Control, and Countermeasure Program
revamp efforts.
• Collaborated with the Environmental Protection Agency on Clean Air Act Section 129
requirements.
• Complied with the State Investigative Order for PFAS by participating in the Region 2
PFAS Study coordinated through BACWA and managed by San Francisco Estuary
Institute (SFEI).
• Participated in SARS-CoV2 wastewater studies in collaboration with Stanford University
and the University of California at Berkeley.
INFRASTRUCTURE RELIABILITY
• Completed annual Basin A South soil cap seep repairs.
• Obtained permit for treatment plant 9000 valves replacement.
• Provided regulatory oversight for Outfall Improvements Project, Phase 7.
• Met monitoring requirements during the Outfall Improvement Project.
INNOVATION AND OPTIMIZATION
• With assistance from CSO, set up automatic notifications of Category One Overflows
to the Lab and created a link between Cityworks and GeoPortal.
AGILITY AND ADAPTABILITY
• Participated in sample collection to advance wastewater-based epidemiology model for
COVID-19.
FYs 2019-20 and 2020-21 Strategic Targets and Performance
Goal Metric FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 Performance
Target Performance Target as of •
NPDES Compliance Zero(0) Zero(0) ;�' Zero(0) Zero(0) ;�:
Violations Violations Violations Violations
Zero(0) 5 ygr Zero(0) Zero(0) ,iflr
Title V Compliance * i � �
Violations Violations Violations Violations
Recycled Water Zero(0) Zero(0) qH� Zero(0) Zero(0) �o�
Ell-3 Title 22 Compliance Violations Violations ' ' Violations Violations ' '
May 20, 2021 Regular Board Meeting Agenda Packet3-'age 245 of 457
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23,771 MT CO2e
in Calendar Year
Anthropogenic GHG�- <25,000 23,038 MT 2020 CO2e wHr <25,000 MT Emissions
Emissions Metric Tons ' r ** w r
in Calendar ' r CO2e On Track to , r
�k P.d (Per Calendar Year) (MT)CO2e Year 2019 Meet Target for
Calendar Year
2021
Annual
Environmental
Compliance • r w r
ty 100% 100% w�r 100% 100% w�r
a �' Inspections and ' r , r
Permitting
Completed on Time
r HHW Management Zero(0) Zero(0) J�� Zero(0) Zero(0) ���
Compliance Violations Violations ' r Violations Violations ' r
Permit Compliance NSA 100%(Air)
(Air and Liquid) (Not a Metric in the 2018-20 100% 100%(Liquid) i r
■ Strategic Planan))
*Will be addressed with new wet scrubber planned as part of the Solids Handling Facility Improvements Project.
** Pre-verified figures.
May 20, 2021 Regular Board Meeting Agenda Packel3fage 246 of 457
Page 163 of 349
FY 2021-22 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:
• Y 2021-22
Strive to meet all air permit requirements(Title V and Permit to Operate).
Strive to meet all wastewater-related permit requirements(NPDES Treatment Plant Permit,
Achieve 100% Nutrients Watershed Permit, Polychlorinated Biphenyls, and Mercury Watershed Permit).
Compliance in All
Regulations
Negotiate successful renewal of the NPDES Treatment Plant Permit.
Budget Overview by Expense Category
9-2 Y 19-20 FY 20-21 FY 20-21 FY 21-22 Budgetto Budgetto
lrunt Rescriptnion It]p Budget Budget
get L6 Actual Budget Projection Budget Variance($) Variance(%)
Salaries&Wages $3,831,724 $3,814,075 $3,960,913 $3,911,087 $4,047,781 $86,868 2.2%
Employee Benefits 1,416,357 1,430,363 1,482,826 1,426,093 1,542,299 59,473 4.0%
Retiree Costs 1,205,956 1,254,305 1,307,155 1,309,911 1,294,663 (12,492) -1.0%
Purchased Property Services 693,125 675,258 841,625 976,552 841,010 (615) -0.1%
Repairs&Maintenance 96,500 65,380 94,000 69,942 87,500 (6,500) -6.9%
Hauling&Disposal 551,625 581,114 701,425 851,600 701,500 75 0.0%
Security - - - 3,200 3,200 3,200 -
Rentals 6,500 4,866 5,200 7,650 7,650 2,450 47.1%
Cleaning 38,500 23,898 41,000 44,160 41,160 160 0.4%
Purchased Professional,Technical& 630,300 413,051 724,300 622,190 785,325 61,025 8.4%
Other Services
Professional Services 6,000 5,903 6,000 7,790 9,525 3,525 58.8%
Technical Services 598,500 393,444 696,000 596,000 752,000 56,000 8.0%
Other Purchased Services 25,800 13,704 22,300 18,400 23,800 1,500 6.7%
Supplies&Materials 344,300 293,599 356,700 383,548 395,250 38,550 10.8%
Utilities&Fuel 14,300 9,222 12,700 12,311 12,700 - 0.0%
General Supplies 330,000 284,376 344,000 371,237 382,550 38,550 11.2%
Other Expenses 506,441 380,794 486,246 402,417 438,383 (47,863) -9.8%
Memberships 455,016 359,241 434,671 380,439 389,808 (44,863) -10.3%
Training&Meetings 47,825 20,511 47,975 20,278 44,975 (3,000) -6.3%
Miscellaneous Other 3,600 1,042 3,600 1,700 3,600 - 0.0%
Total Expenses $8,628,203 $8,261,444 $9,159,765 $9,031,798 $9,344,711 $184,946 2.0%
May 20, 2021 Regular Board Meeting Agenda PacketTpage 247 of 457
Page 164 of 349
Personnel Requirements
MOW IFY 2019-20
MENEF"Regular S11 atus Employees Year-End IFY i2021-22
Actual
Administrative Assistant 1.0 1.0 1.0
Assistant Engineer(Staff Engineer) 2.0 2.0 2.0
Associate Engineer 1.0 1.0 1.0
Chemist 4.0 6.0 6.0
Environmental and Regulatory Compliance Division Manager 1.0 1.0 1.0
Environmental Compliance Inspector 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 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 27.0 29.0 29.0
EmployeesFY 2019-20
Limited Duration
Elm Actual
Temporary Chemist 1.0 1.0 1.0
Temporary Household Hazardous Waste Customer Sorter 1.0 - -
Temporary Household Hazardous Waste Technician - - 1.0
Laboratory Assistant Summer Student - 2.0 1.0
Intern 1.0 1.0 1.0
Total 3.0 4.0 4.0
Budget Modifications and Contributions to Key Priorities
The Environmental and Regulatory Compliance Division plays the lead role in monitoring evolving
regulation and environmental compliance requirements promulgated by state and federal agencies to
ensure that Central San is positioned to meet these requirements.
The Environmental and Regulatory Compliance Operating Budget for FY 2021-22 is $9.3 million, a 2.0%
increase over the prior year's budget. Salaries & Wages include the agency-wide cost-of-living
adjustment and increases due to step advancements. The relatively flat-lined budget for hazardous
waste hauling & disposal assumes Central San's reuse room will open during FY 2021-22. Should the
reuse room remain closed as a precautionary measure to address the COVID-19 pandemic, this line
item is projected to increase by as much as $150,000.
May 20, 2021 Regular Board Meeting Agenda Packet4(page 248 of 457
Page 165 of 349
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; leads the
planning and pre-design of Special Projects; 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 adjustments that may be necessary to adequately fund operations,
maintenance, and the sewer construction budget for ever-increasing Capital Improvement Program
needs.
FY 2020-21 Strategic Accomplishments
CUSTOMER AND COMMUNITY
• Updated Chapters 1, 5, 6, and 7 of the District Code.
• Created a pocket guide for Central San's Standard Specifications, which was
published in both English and Spanish for Development Inspectors to distribute to
contractors.
• Updated the Pump Review Application and Applicant Guides (Encroachments &
Resource Protection Areas (RPAs), New Connection, Property Owner Permit,
Reimbursement Program, Sewer Main Extension, Sewer Manhole Installation) for
use at the Permit Counter.
• Created a Septic to Sewer (S2S) Financing Program as a two-year pilot to encourage
single-family houses to connect to nearby sewer mains.
• For California Association of Sanitation Agencies (CASA) outreach coalition efforts,
provided step-by-step process/coaching directions on creating and gathering data for a
Wipes Clog Pipes map for agencies with and without GIS-enabled maintenance
records.
• Created Potential Maintenance Hole (Manhole) Lid Beautification Areas Map to
estimate the number of lids needing replacement in identified "walkability districts."
• Created new Non-Residential Capacity Fee Installment Payment Program to
provide broader financing for businesses struggling in the current economic
climate.
` ■ ENVIRONMENTAL STEWARDSHIP
[- • Provided support to further the Refinery Recycled Water Exchange Project with
' Contra Costa Water District (CCWD) and Valley Water.
• Completed construction for the Dublin San Ramon Services District-East Bay
Municipal Utility District Recycled Water Authority (DERWA) temporary wastewater
diversion facility in San Ramon to produce more recycled water and augment
regional water supply.
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Page 166 of 349
FISCAL RESPONSIBILITY
• Requested an additional $89.5 million from the State Revolving Fund (SRF) for a
total project amount of$173.1 million for the Solids Handling Facility
Improvements Project.
• Completed all SRF paperwork for the $173.1 million loan and signed the Initial
Agreements to allow the start of construction and receipt of loan proceeds.
• Completed a grant application for the Walnut Creek/Grayson Creek Levee Project
through the Federal Emergency Management Agency (FEMA) Building Resilient
Infrastructures and Communities (BRIC) program.
• Implemented a Rate Collection Holiday on sewer service charge and recycled water
charges for all customers to address the impacts on the economy from COVID-19.
• 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 on April 15, 2021.
• Developed Central San Property Management Maps and populated supplementary
spreadsheets to visualize and track Central San-owned properties.
• Prepared Treatment Plant Inundation Exhibit map for a grant proposal for the Walnut
Creek/Grayson Creek Levee Project.
• 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.
' INFRASTRUCTURE RELIABILITY
• Entered a contract with InfoAsset'to start review of vertical asset software for
implementation and to transition from InfoMaster'to InfoAsset'for sewer renovation
risk analysis and renovation projections.
• Completed comprehensive condition assessments for the Steam and Aeration Blower
Systems Renovations Project and developed business case evaluations to scope future
capital projects.As a result,the Electric Blower Project started design early to facilitate
construction of the Solids Handling Facility Project.
• Started a comprehensive condition assessment for the Ultraviolet Disinfection
Replacement Project and Ultraviolet Hydraulic Improvement Project.
• Initiated Sewer Structure Inventory Project to collect manhole and cleanout
conditions, locations in bike lane, road type, and whether there are any structural
issues needing immediate attention and recommending for Collection System
Operations (CSO)review.
• Created a Structure Elevation Safety Project mobile app for CSO to review
manholes and create work orders or locate service request tickets in Cityworks if
necessary.
• Upgraded existing CCTV software ITPipes desktop setup to the newer ITPipes
platform, including upgrades for the server and trucks, setting up Contractor Portal
services/synching and data migration from ITPipes' existing dataset, and upgrading
to ITPipes Mobile in 3 CCTV units.
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Page 167 of 349
• Created a Plant Maintenance Dashboard to provide work order QA/QC, which is
critical for planning future maintenance work and deciding work and resource
allocation.
• Initiated large diameter pipeline inspection project and completed manhole
inspections on critical interceptors.
INNOVATION AND OPTIMIZATION
• Installed 10 manhole monitors for two manufacturers, Smart Cover and ADS, as a pilot
project to evaluate and predict collection system flows and avoid spills.
• Continued development of Oracle Permitting module and initiated use on
encroachment verification forms in November 2020.
• Initiated pilot project design for new tertiary membrane filtration with pressurized
membranes to improve recycled water production in lieu of renovating three
existing filters.
• Developed map services for Oracle Permitting module for public view and Central
San view.
• Upgraded Permit Counter Report with new Oracle permit data and developed data
extract process to import parcel and permit data exported by Oracle.
• Initiated Equipment Summary Forms for capital construction bid packages.
• Provided support for evaluation of food waste and biosolids anaerobic digestion
facility in collaboration with Anaergia.
• Invited by American Council of Engineering Companies Educational Program to
participate on a panel of experts regarding Sustainability of Infrastructure Projects
using Envision.
• Presented paper on "An Adventurous Journey of Implementing Asset Management
Program at a Public Agency" at 2020 Water Environment Federation's Technical
Exhibition and Conference (WEFTEC) conference for seminar focused on Organizational
Culture Change.
• Presented paper on "Wastewater Plant Condition Assessment: Methods and Results"
at 2020 WEFTEC conference for seminar focused on Vertical Asset Management.
• 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 October due to COVID-19.
• Completed Data Schema update for Regulatory Compliance and updated work orders
for Regulatory permits to be automatic based on the assets in Cityworks.
• Piloted Asset Barcode project to streamline work order creations and improve
workflow of Operations inspection rounds from using paper method to digital using
mobile tablet devices.
• Presented "Esri Facilitates and Enables Asset Management at Central San" at Esri
2020 Virtual Esri User conference on Asset Management: Beyond the Asset
Registry.
isR�pi AGILITY AND ADAPTABILITY
Commissioned an Engineering Controls Plan, developed Return to Office protocols, and
installed all recommended improvements for a safe workplace.
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• Participated in and launched wastewater surveillance efforts with Stanford, UC
Berkeley, Contra Costa Health Services, and Department of Health and Human
Services in collaboration with the Dr. Mario Menesini Environmental Laboratory.
• Invited to speak and present on Central San's COVID-19 research efforts at East Bay
Municipal Engineers.
• Invited to speak and present at the Headwater Institute on "Wastewater
Surveillance and Research" for their Science, Technology, Engineering and Math
program.
FYs 2019-20 and 2020-21 Strategic Targets and Performance
FY 2019-20 FY 2020-21 FY 2020-21
Goal Metric Target FY 0 Performance Target Performance
as of •
Median
Customer
® Satisfaction ,�r 100% 100% ,�r
>_95.0% 100% � ■ 4 ■
Rating on Permit ' r (average rating) ' r
Counter
Interactions
Sewer Service
Charge(SSC) SSC Less Than
Less Than Average of Bay
Area Agencies
Median of
Bay Area SSC Plus Ad
Median Service Agencies ,Hr Valorem Tax Less + ■
Target Met j r Target Met iAir
Affordability SSC Plus Ad Than Average of
Valorem Tax Bay Area Agencies
Less Than
Average of <_0.78%of Median
Household
Bay Area
Income
Agencies
Large Diameter N/A >_3 Miles Per Year
and Force Main (Not a Metric in the for the Next 5 0 Miles** ii
Condition FY 2018-20 Strategic Plan) Years Starting in ■
Assessment FY 2020-21
.• Pilot Test New >_3 Pilot Tests i >_3 Pilot Tests or 6 Pilot Tests
and Promising or Reviews 8 ,�■ ,�r
Technology Per Year Reviews or Reviews
Research Papers 7
>_3 Papers Per ,Or <_3 Papers or 3 Papers or ;��
p
and Findings Year papers and , ■ Presentations Presentations ' r
Presented 4 presentations)*
Customer N/A
Hr
Satisfaction (Not a Metric in the FYs 2018-20 >_90% 100% ;�r
Levels Strategic Plan)
Requested Safety
Improvements to N/A a o ; '
NMI the Workplace (Not a Metric in the FYs 2018-20 100/ 100/ ,�r
Strategic Plan)
Fulfilled
* 1 planned presentation was postponed to October 2020 and 1 was canceled due to COVID-19.
**Force Main Inspection Program to start in Q3.
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FY 2021-22 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:
__i79
2021-22
7TSTM Host a Sewer Summit Workshop for partner Cities and County.
Update and publish additional "Applicant Guides"to assist Development Applicants,
Deliver High-Quality including ones focused on the new Oracle web portal for online applications/permitting.
Customer Service
Develop an interactive web map for education outreach programs.
LA 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
g Develop Asset Management Plan.
Optimally Throughout
Their Lifecycle Implement the Large Diameter Pipe and Force Main Inspection and condition
assessment programs.
Complete work on comprehensive two-year program to perform condition assessments
® for the Steam and Aeration Blower Systems Renovations 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 Technical Memos on Resiliency and
Vulnerability.
Implement and train staff on the new Oracle permitting software.
Implement a public portal for Development applications with the Oracle permitting
Improve and Modernize software
Operations through
Technology and Evaluate and review new Sewer Service Billing software to replace SunGard.
Efficiency Measures
Evaluate and review remote manhole level monitoring solutions.
May 20, 2021 Regular Board Meeting Agenda Packet4-Vage 253 of 457
Page 170 of 349
Budget Overview by Expense Category
FY 19"-20W�9-�O FY 20-21 FY 20-21 FY 21-22
F 7Y Budget Budget
Budget Actual Budget Projection Budget Variance($) Variance(%)
Salaries&Wages $4,580,592 $4,407,239 $4,329,561 $3,916,189 $4,112,974 ($216,587) -5.0%
Employee Benefits 488,384 545,427 573,751 530,853 639,864 66,113 11.5%
Retiree Costs 1,434,618 1,481,581 1,459,773 1,305,972 1,290,778 (168,995) -11.6%
Purchased Property Services 40,400 15,126 33,400 40,800 54,800 21,400 64.1%
Repairs&Maintenance 35,400 11,626 28,400 17,400 28,800 400 1.4%
Rentals 5,000 3,500 5,000 17,400 20,000 15,000 300.0%
Construction - - - 6,000 6,000 6,000 0.0%
Purchased Professional,Technical& 929,542 517,763 760,942 429,500 771,525 10,583 1.4%
Other Services
Professional Services 165,000 28,861 102,500 97,500 122,525 20,025 19.5%
Technical Services 650,000 366,026 544,500 200,500 524,500 (20,000) -3.7%
Other Purchased Services 114,542 122,876 113,942 131,500 124,500 10,558 9.3%
Supplies&Materials 207,650 208,668 211,800 191,005 220,100 8,300 3.9%
Utilities&Fuel 149,800 162,143 155,800 150,505 166,500 10,700 6.9%
General Supplies 57,850 46,524 56,000 40,500 53,600 (2,400) -4.3%
Other Expenses 98,712 77,251 78,538 28,208 85,000 6,462 8.2%
Memberships 23,562 20,579 22,813 20,820 22,225 (588) -2.6%
Training&Meetings 68,300 54,700 48,875 6,801 56,275 7,400 15.1%
Miscellaneous Other 6,850 1,971 6,850 587 6,500 (350) -5.1%
Total Expenses $7,779,898 $7,253,053 $7,447,765 $6,442,526 $7,175,041 ($272,724) -3.7%
*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.
Note:Some staff in this division are budgeted with the Capital Improvements Program. As a result,a portion 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.
May 20, 2021 Regular Board Meeting Agenda Packet4(page 254 of 457
Page 171 of 349
Personnel Requirements
EmployeesIFY 2019-20
gular Status
Actual
Administrative Assistant - 1.0 1.0
Asset Management Program Administrator 1.0 1.0 1.0
Assistant Engineer 1.0 2.0 1.0
Associate Engineer 4.0 4.0 5.0
Construction Inspector 4.0 4.0 4.0
Development Services Supervisor 2.0 2.0 2.0
Engineering Assistant 6.0 8.0 7.0
Engineering Technician 1.0 1.0 -
GIS Analyst 2.0 2.0 2.0
Management Analyst 2.0 2.0 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 30.0 34.0 32.0
EmployeesFY 2019-20
Limited Duration
Actual
Temporary Engineering Assistant - - 1.0
Summer Student Intern - 4.0 5.0
Intern 4.0 4.0 4.0
Total 4.0 8.0 10.0
Budget Modifications and Contributions to Key Priorities
The Planning and Development Services Division's budget allows Central San to meet several key
challenges including maintaining customer awareness of Central San's services, the costs involved in
meeting those responsibilities, and meeting service level expectations at responsible rates. This is
accomplished through the division's work in maintaining the financial plan and rate-setting, by
balancing the objectives of setting rates to fund important priorities for Central San, while keeping rate
adjustments moderated and no higher than necessary.
The Planning and Development Services Division's budget for FY 2021-22 is $7.2 million, reflecting a
decrease of approximately 3.7% from the prior year budget. Salaries & Wages include the agency-wide
cost-of-living adjustment and increases due to known step advancements for those eligible. The
budgetary reduction is largely the result of two transitional full-time equivalent positions approved the
prior year's budget no longer being necessary in FY 2021-22 following the anticipated retirement of
two full-time positions. These two transitional positions were necessary for succession planning
purposes as well as to assist at the permit counter during the new ERP Implementation Project.
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Page Intentionally Blank
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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 and treat wastewater, remove pollutants to protect public health and the
environment and meet exceed regulatory requirements. A portion of the wastewater is further treated
to produce recycled water that meets California Title 22 requirements. The Operations Department is
responsible for 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 vi.
~ N 1
z � F
1 111101
• r., I w
May 20, 2021 Regular Board Meeting Agenda Packe14!?age 257 of 457
Page 174 of 349
Office of the Director of Operations
OVERVIEW
The Director of Operations oversees the Collection System Operations, Plant Maintenance, and Plant
Operations Divisions and is responsible for providing these divisions with the resources and guidance
needed to fulfill their missions.
Major accomplishments of the office of the Director of Operations include achievement of a steadily
decreasing sewer overflow rate; the 23rd consecutive National Association of Clean Water Agencies
(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, 2021, Central San could potentially set a 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, design, and construct large-scale capital improvements. Plant 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. For these achievements, Plant Maintenance
was recognized by Uptime Magazine for the second time in two years, this time with the Best Asset
Management Program Award. 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, comply with ever-evolving health orders and regulations, and
continue its high level of uninterrupted wastewater collection and treatment services to Central San's
customers.
Within the Plant Maintenance Division's focus on Asset Management is its overarching vision to build
on today's technology and look toward tomorrow's possibilities, through improvement and
implementation of a broader, fully adaptive, self-learning, and self-healing maintenance philosophy.
The Plant Operations Division aspires to empower its team members to be self-reliant and act as an
authority in their role by cultivating a supportive environment which fosters tight performing units,
capable of making sound critical judgments to adjust and adapt to ever-evolving challenges. As
Central San's most visible employees, the Collection System Operations Division values its role as an
ambassador, projecting Central San's image outward to the community while, at the same time,
understanding and being sensitive to customer expectations and upholding its vision of service to
protect homeowners, public facilities, and local waterways.
The FY 2020-21 Strategic Accomplishments and performance against the key metrics, as well as the
FY 2021-22 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 Director of Operations.
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Budget Overview by Expense Cate or
FA,count Description WrY."9-20 W19-20 FY 20-21 FY 20-21 FY 21-22 Budget Budget
Budget Actual Budget Projection Budget Variance Variance
AmElL - ($) N
Salaries&Wages $ $ $584,505 $223,727 $371,156 ($2131349) -36.5%
Employee Benefits 198,824 47,344 94,342 (104,482) -52.5%
Retiree Costs 201,761 60,605 124,861 (76,900) -38.1%
Purchased Professional, 12,000 - 50,000 38,000 316.7%
Technical&Other Services
Professional Services 5,000 - (5,000) -100.0%
Technical Services 7,000 50,000 43,000 614.3%
Other Purchased Services - - - -
Supplies&Materials 20,400 73,411 80,400 60,000 294.1%
Utilities&Fuel - 48,293 55,000 55,000 -
General Supplies - 20,400 25,118 25,400 5,000 24.5%
Other Expenses 17,850 600 15,850 (2,000) -11.2%
Memberships - - 1,200 - 1,200 0.0%
Training&Meetings 15,700 600 13,700 (2,000) -12.7%
Miscellaneous Other 950 950 0.0%
Total Expenses $- $- $1,035,340 $405,687 $736,609 ($298,731) -28.9%
*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.
** FY 2019-20 budgeted and actual expenditures for this function were included in other Divisions for that year.
Personnel Requirements
Regular Status Employees Year-End FY 2020-21 FY 2021-22
Actual
Administrative Assistant 2.0 2.0 -
Administrative Services Supervisor 1.0 1.0 1.0
Director of Operations 1.0 1.0 1.0
Total 4.0 4.0 2.0
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 Enterprise Resource Planning (ERP) system and revised functions chart of
accounts, new organization 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. Accordingly, the FY 2019-20
budget and actual columns do not contain any information.
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The Office of the Director of Operations budget for FY 2021-22 is approximately$0.7 million, reflecting
a decrease of approximately 28.9%from the prior year's budget. This decrease is primarily attributable
to one Administrative Assistant position being transferred to the Plant Operations Division and the
other Administrative Assistant position being transferred to the Plant Maintenance Division. Each of
those divisions, which report to the Director of Operations, receive substantial support from the
Administrative Assistants,justifying the transferring of these two budgeted positions for improved cost
allocation purposes. The Office of the Director of Operations will continue to retain an Administrative
Services Supervisor for administrative support.
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Collection System Operations
OVERVIEW
This division is responsible for cleaning, maintaining, and repairing over 1,500 miles of collection
sewers, trunk sewers and force mains in Central San's vast collection system, as well as maintaining the
recycled water distribution system. This division also includes an in-house vehicle shop, which is
responsible for the maintenance of all Central San vehicles.
FY 2020-21 Strategic Accomplishments
OEM= CUSTOMER AND COMMUNITY
9%4 • Responded to 253 customer service phone calls.*
• Received and cleared over 20,525 USA locating requests on time.*
• Continued to provide essential services with no interruption during the COVID-19
pandemic.
• Hosted, in conjunction with BAYWORK, a webinar on "Our Journey from Paper to
Digital and Lessons Learned."
` ENVIRONMENTAL STEWARDSHIP
• Responded to 18 sanitary sewer overflows (as of 3/31/21).
• Cleaned 478 miles of sewers.*
• Completed 10,604 work orders on schedule 99.5%of the time.*
• Performed 20%of all cleaning work on "hotspots."*
• Closed circuit televised 80.6 miles of sewers.*
■' FISCAL RESPONSIBILITY
• Optimized 1-, 2-, 3-, and 6-month cleaning schedules to dispatch staff more efficiently
and clean sewers as needed to best prevent overflows.
GOAL FIVE INFRASTRUCTURE RELIABILITY
• Completed 641 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.
' INNOVATION AND OPTIMIZATION
• Sanitary sewer overflow volume estimator received first place for Central San's
innovation awards. This will allow CSO field crews to estimate the volume of an
SSO more accurately.
*(as of the end of February 2021)
May 20, 2021 Regular Board Meeting Agenda Packe15:Page 261 of 457
Page 178 of 349
FYs 2019-20 and 2020-21 Strategic Targets and Performance
FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21
Goal Metric Target Performance Target Performance
as . .
Average Onsite
Response Time for
Collection 520.0 30.46 ,�r 32.33 ■Ar
System Emergency Minutes Minutes i : 530.0 Minutes Minutes • r
Calls,During
Working Hours
Average Onsite
.• Response Time for
530.0 34.32 ■Br 34.2 �Br
Collection ■ r 540.0 Minutes ' r
System Emergency Minutes Minutes ' r Minutes ' r
Calls,After Hours
.• . Average Customer a3.8 out of 3.84 out of r 3.69 out of ■ r
Service Rating for 4.0 4.0 ;�r ?3.8 out of 4.0 4.0 •�r
Emergency Calls
IUMTHITMA 52.5 Spills 1.43 Spills 0.72 Spills
Sanitary Sewer per 100 per 100 flir 52.0 Spills per 100 per 100 g�
Overflows Miles of Miles of • r Miles of Pipeline Miles of ' r
Pipeline Pipeline Pipeline
Spills to Public ¢ :®:
Water 3 6 , r 3 2 i t
Percentage of Spills ° 80.75% ?95% rr
?95/o B 81.82%
WO
¢500 Gallons ' ' ' r
Pipeline Cleaning
Schedules ?95% 94.43%* 'H; ?98% 99.5%* 1 r
LAU71 Completed on Time
On >_3.0%of
Pipelines On >_4%of
Pipeline Cleaning ° * 3.5/■ Pipelines Cleaned ° * r
,
Cleaned on .44/° ■� ' r
r o
QA/QC an Annual ' r on an Annual ' r
2
Basis
Basis
Pipeline Cleaning
QA/QC >_98.0% 96.57%* :ar >_98% 96.3%* "or
i Passing Rate
Recycled Water
® Distribution System N/A
r�r
Maintenance (Not a Metric in the FYs 2018-20 >_98% 100% i ;
Schedules Strategic Plan)
Completed on Time
® Uptime for Vehicles ■ r 100% rAr
100% 100% � r (Uptime for 100% � ;
and Equipment
Vehicles)
May 20, 2021 Regular Board Meeting Agenda Packet54age 262 of 457
Page 179 of 349
Number of 6.79
Sanitary Sewer N/A standard
Overflows <_1 standard deviation 11 r
(Not a Metric in the FYs 2018-20
MM (during the last five deviation (indicating Strategic Plan) i r
years for the same reduced
time period) overflows)**
Permit Compliance N/A
(Collection (Not a Metric in the FYs 2018-20 100% 99.8% i r
System) Strategic Plan)
N/A
Customer (Not a Metric in the FYs 2018-20 >_90% 92%� ;A;Satisfaction Levels
Strategic Plan)
* Performance may have been affected by modified working schedules to adhere to social distancing mandates due to COVID-19,
impacting the fourth quarter of the FY 2019-20 and FY 2020-21.
**The intent of this metric is to measure whether overflows have increased during pandemic events or natural disasters. If increased,
the goal is to have a standard deviation of<_1.Because overflows have been reduced in FY 2020-21 as of Q2 when compared to the same
time period over the past five years,the standard deviation of 6.79 means the target was met and exceeded.
FY 2021-22 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
Wo
Deliver Continue to respond quickly to emergency calls both during and after work hours.
High-Quality
Customer Service
k
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.
gumsBegin using alternative diesel fuels for CSO vehicles, resulting in cleaner emissions, reduced
Maintain Financial maintenance,and improved reliability.
Stability and
Sustainability
May 20, 2021 Regular Board Meeting Agenda Packel5$'age 263 of 457
Page 180 of 349
Budget Overview by Expense Category
FY 19"-20W�9-�O FY 20-21 FY 20-21 FY 21-22
11r.nt D.Icliptil. F 7Y Budget Budget
Budget Actual Budget Projection Budget Variance($) Variance
Salaries&Wages $6,911,769 $6,630,360 $6,948,805 $6,594,634 $7,025,730 $76,925 1.1%
Employee Benefits 3,046,602 2,852,126 3,035,416 2,895,466 3,071,126 35,710 1.2%
Retiree Costs 2,052,083 2,081,712 2,190,179 2,171,216 2,128,352 (61,827) -2.8%
Purchased Property Services 1,653,104 1,197,126 657,501 554,900 651,300 (6,201) -0.9%
Repairs&Maintenance 1,449,503 1,027,783 407,500 340,600 419,000 11,500 2.8%
Hauling&Disposal 40,000 33,497 40,000 47,000 50,000 10,000 25.0%
Security - - 16,500 - - (16,500) -100.0%
Rentals 72,601 70,808 78,501 78,500 78,500 (1) 0.0%
Cleaning 91,000 65,039 1 115,000 88,800 103,800 (11,200) -9.7%
Purchased Professional,Technical& 103,780 87,072 951,880 939,871 957,780 5,900 0.6%
Other Services
Professional Services 7,000 6,959 7,700 7,000 7,700 - 0.0%
Technical Services 63,780 49,592 907,180 903,602 912,080 4,900 0.5%
Other Purchased Services 33,000 30,521 37,000 29,269 38,000 1,000 2.7%
Supplies&Materials 899,852 887,608 1,092,850 1,046,600 1,095,450 2,600 0.2%
Utilities&Fuel 393,100 399,604 393,100 414,100 415,700 22,600 5.7%
General Supplies 506,752 488,004 699,750 632,500 679,750 (20,000) -2.9%
Other Expenses 34,523 25,472 39,935 30,903 52,700 12,765 32.0%
Memberships 14,822 15,380 17,235 14,403 17,200 (35) -0.2%
Training&Meetings 15,801 7,107 18,800 14,000 31,600 12,800 68.1%
Miscellaneous Other 3,900 2,986 3,900 2,500 3,900 0.0%
Total Expenses $14,701,713 $13,761,475 $14,916,566 $14,233,589 $14,982,438 $65,872 0.4%
*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 Requirements
FY 2019-1[FY 2020-21 FY 2021-22
MEN regularStatus Employees Year-En
Actual
Administrative Assistant - 1.0 3.0
Senior Administrative Assistant 1.0 1.0 1.0
Administrative Technician 2.0 2.0 -
Maintenance Planner 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 17.0 18.0 18.0
Maintenance Crew Member 19.0 18.0 20.0
Maintenance Supervisor 4.0 4.0 4.0
Senior Engineer 1.0 1.0 1.0
Utility Worker - 2.0 -
Vehicle and Equipment Mechanic 3.0 3.0 3.0
Vehicle Maintenance and Equipment Maintenance Supervisor1.0 1.0 1.0
Total 53.0 56.0 56.0
Budget Modifications and Contributions to Key Priorities
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The Collection System Operations Division budget for FY 2021-22 is $15.0 million, reflecting an increase
of only 0.4% over the prior year's budget. While this operational division's budget largely remained
steady, the overall net increase was primarily driven by increases in known labor-related costs,
including the agency-wide cost-of-living adjustment as well as known step advancements for eligible
employees. Savings are projected to be realized in retiree/unfunded liability costs pursuant to the
reduction in the Unfunded Actuarial Accrued Liability contribution rate pursuant to the latest actuarial
report published by Contra Costa County Employees' Retirement Association.
May 20, 2021 Regular Board Meeting Agenda Packel5-'age 265 of 457
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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, and all facilities at the Martinez campus. It consists of
five shops: Mechanical Maintenance, Machine, Electrical, Instrument, and Buildings & Grounds. The
Reliability Engineering (RE) section and the Pumping Stations section are also part of the Maintenance
Division. The RE section plans and schedules daily and major yearly maintenance work. It also manages
several service contracts and oversees the asset condition management program. The RE team is also
responsible for reliability strategy development and execution. The Pumping Stations workgroup
operates and maintains the 18 pumping stations throughout the service area. The Plant Maintenance
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 2020-21 Strategic Accomplishments
■ ' ■ CUSTOMER AND COMMUNITY
• Received Best Asset Management Program 2020 award from Uptime Magazine.
ENVIRONMENTAL STEWARDSHIP
• 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 23rd consecutive year.
■ ` ■ WORKFORCE DEVELOPMENT
��A • Improved Mechanical Maintenance Technician Trainee Program by updating the training
material, modifying the curriculum to better suit learning and development in the subject
matter, and adding online TPC learning modules.
• Added new technical learning libraries content.
• Continued to utilize hands-on practical exams for Mechanical Maintenance Shop
recruitments.
• Engaged with community and technical colleges' recruitment and program development.
• Hosted two interns from Los Medanos College in the Mechanical Maintenance Shop as part
of the Technical Trades Internship Program.
• Several staff have gained Level I certification in areas of asset condition monitoring (ACM)
techniques, such as Machinery Lubrication Technician and Infrared Thermography.
• Seven staff members obtained Certified Reliability Leader certification.
■' INFRASTRUCTURE RELIABILITY
• Completed 10 Don't Just Fix It; Improve It (DJFI) initiatives to increase maintenance
effectiveness, lower costs, and increase equipment reliability(projected based on DJFIs
completed as of 3/9/21).
May 20, 2021 Regular Board Meeting Agenda Packel5fage 266 of 457
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• Completed 288 QA/QC Maintenance Planner updates to improve work orders by
incorporating Maintenance staff's suggestions (projected based on updates completed as
of 3/9/21).
• Completed 67 safety work orders (projected based on work orders completed as of
3/9/21).
• Successfully maintained operation of all 18 pumping stations during PG&E Public Safety
Power Shutoff events.
• Continuously reviewed maintenance procedures and identified opportunities for
improvement as part of the 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.
• Completed 37 Planner updates which include improvements to PM program such as
updated asset information, improved standard operating procedures, improvements to
PM task effectiveness or efficiency.
• Increased accessibility of Asset Management and RE 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.
■ INNOVATION AND OPTIMIZATION
• Obtained new ACM/maintenance tools and equipment to increase work efficiency.
• Continued the breaker overload testing program and winding analyzer program,which play
a significant role in lowering equipment downtime costs, increasing reliability of equipment,
increasing effectiveness of the motor management program, and enhancing acceptance
testing of new or overhauled equipment.
• Continued to use dashboards to better monitor, analyze, and act on exceptions; the
Asset Health Monitoring system based on asset condition inspections and ACM program
analysis; and the updated asset handoff workflow which uses new engineering
standards and enhances tracking of steps along the handoff workflow.
NAGILITY AND ADAPTABILITY
• Helped install engineering controls to working areas such as plexiglass barriers, hand
■ sanitizer dispensers, and directional signage.
• Spearheaded daily systematic cleaning efforts to prevent the transmission of COVID-19.
• Continued level of service throughout the pandemic by rearranging work schedules,
adding temporary facilities, and using social distancing measures.
May 20, 2021 Regular Board Meeting Agenda Packel5!page 267 of 457
Page 184 of 349
FYs 2019-20 and 2020-21 Strategic Targets and Performance
FY 2019-20 FY • 2020-21 FY 2020-21
Goal Metric Target Performance Target Performance
as of •
® Safety-Prioritized Work ° ° , r
'
Orders Completed on Time 100% 93/ �O�; 100% 91% ���
Regulatory Title V Work 100% 91% J r 100% 90% ;A�
' Orders Completed on Time 4 r ' r
Meow Planned Treatment Plant ' ' 92% i i>_95% 91% �r >_90%PM Completed on Time ' ' ' '
N/A
Planned Pumping Station NO PM Completed on Time >-95% Data Unavailable* (Not a Metric in the FYs 2020-22
PM Completed on Time
Strategic Plan)
**DJFI work orders N/A J r
PON completed (Not a Metric in the FYs 2018-20 >_35 2
Strategic Plan)
Twice-daily Cleaning of All N/A i r
-� Restroom Facilities (Not a Metric in the FYs 2018-20 100% 100%
Strategic Plan) i r
* Pumping Stations PM data was not yet added to the Cityworks computerized maintenance management system.
** Performance was affected by modified working schedules to adhere to social distancing mandates due to COVID-19.
FY 2021-22 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
Mi_0,
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.
May 20, 2021 Regular Board Meeting Agenda Packet6(Fage 268 of 457
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Continue to work on Technology Master Plan and develop operational technologies such as the
Manage Assets asset health monitoring system, asset handoff process and tracking system, online condition
Optimally to monitoring program,analytics enhancements, RE tools, data management ecosystem, and
Prolong Their updated asset management plan.
Useful Life
Budget Overview by Expense Category
Budgetto
FY 19-20W19-20 FY 20-21 FY 20-21 FY 21-& Budget
Account Description Budget Actual Budget Projection Budget Variance
Salaries&Wages_J� $5,983,974 $5,775,043 $6,481,112 $6,405,949 F $6,907,153 $426,041 6.61%.
Employee Benefits 2,453,090 2,198,543 2,123,173 2,381,035 2,596,238 473,065 22.3%
Retiree Costs 1,801,074 1,819,877 1,932,312 1,943,051 1,992,858 60,546 3.1%
Purchased Property Services 2,755,250 2,517,477 2,344,650 1,607,943 2,499,300 154,650 6.6%
Repairs&Maintenance 2,511,650 2,214,446 2,079,850 1,295,995 2,156,300 76,450 3.7%
Hauling&Disposal - - - 536 - - -
Security 3,300 408 3,300 - 3,300 0.0%
Rentals 76,500 129,099 84,500 97,350 119,700 - 0.0%
Cleaning 163,800 1 173,524 177,000 214,062 220,000 43,000 24.3%
Purchased Professional,Technical 239,285 198,226 234,205 76,326 226,385 (7,820) -3.3%
&Other Services
Professional Services - - - 8,320 -
Technical Services 209,900 184,723 204,900 36,286 197,000 (7,900) -3.9%
Other Purchased Services 29,385 13,503 29,305 31,720 29,385 80 0.3%
Supplies&Materials 1,310,750 1,233,276 2,453,050 1,896,032 2,512,050 59,000 2.4%
Utilities&Fuel 534,550 550,497 555,150 558,461 609,150 54,000 9.7%
Chemicals 200,000 123,405 200,000 190,000 200,000 (0) 0.0%
General Supplies 576,200 559,374 1,697,900 1,147,570 1,702,900 5,000 0.3%
Other Expenses 66,926 53,065 90,976 58,474 93,976 3,000 3.3%
Memberships 11,351 8,584 15,101 6,983 15,101 - 0.0%
Training&Meetings 53,775 44,482 74,075 34,662 77,075 3,000 4.0%
Miscellaneous Other 1,800 - 1,800 16,829 1,800 - 0.0%
Total Expenses $14,610,349 $13,795,507 $15,659,478 $14,368,809 $16,827,960 $1,168,482 7.5%
*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
FY 2019-20
egular Status Employees Year-End FY 2020-21 Y 2021-22
Actual
Administrative Assistant - - 1.0
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 2.0 3.0 3.0
Maintenance Technician, Mechanical 9.0 9.0 9.0
Mechanical Supervisor 2.0 2.0 2.0
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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 6.0 6.0 6.0
Pumping Stations Supervisor 1.0 1.0 1.0
Senior Engineer 1.0 1.0 1.0
Staff Engineer - - 1.0
Utility Systems Engineer - 1.0 1.0
Utility Worker 4.0 7.0 7.0
Total 41.0 46.0 48.0
LimitedFY 2019-20
Duration Employees
Actual
Temporary Utility Worker 4.0 1.0 2.0
Summer Student(Laborer) - 10.0 5.0
Summer Student(Engineering Assistant) - 1.0 -
Intern 3.0 3.5 3.0
Total 7.0 15.5 10.0
Budget Modifications and Contributions to Key Priorities
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.
The Plant Maintenance Operating Budget for FY 2021-22 is $16.8 million, reflecting an increase of 7.5%
over the prior year's budget. Labor costs is the primary driver for the increase in this division. With
low assumed turnover for this relatively large workgroup, the labor budget incorporates the
agency-wide cost-of-living adjustment, step advancements for eligible employees, and the transfer of
an Administrative Assistant position from the Office of the Director of Operations. The budgeted
increase in Utilities & Fuels is primarily attributable to a projected increase in electricity consumption
following the installation of four new electrical motors at the Orinda Cross Road and Moraga pumping
stations. The budgeted increase in Repairs & Maintenance and Cleaning is largely attributable to
efforts to respond to risks associated with the COVID-19 pandemic, including activities such as
expanded cleaning and disinfection of the plant operations and headquarters office buildings as well as
the implementation of various on-site engineering controls (i.e. fabrication and installation of sneeze
guards, cleaning stations, touchless faucets, and other controls). Another driver for the increase in the
Repairs & Maintenance category is the anticipation of rebuilding multiple return active sludge pumps
next year.
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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 33.1 MGD,
2.5 MGD of which is further treated into recycled water and reused within the treatment plant and
distributed to customers for non-potable uses.
FY 2020-21 Strategic Accomplishments
CUSTOMER AND COMMUNITY
• Provided wastewater treatment service with no interruptions during the PG&E
Public Safety Power Shutoffs and the COVID-19 pandemic.
■' ■ ENVIRONMENTAL STEWARDSHIP
` • Maintained eligibility for the National Association of Clean Water Agencies Peak
r
Performance Award Platinum status for the 23rd consecutive year, recognizing 100%
compliance with the wastewater discharge permit.
• Improved reliability of Central San's Solids Conditioning Building by upgrading
obsolete communication equipment to address issues with the monitoring system
which had been the root cause of Title V violations.
GOAL FIVE INFRASTRUCTURE RELIABILITY
• Assisted Engineering in the design, coordination, and construction of the Mechanical
and Concrete Renovations; Influent Pump Electrical Improvements; Piping Renovations,
Phase 10; Filter Plant and Clearwell Improvements, Phase 1A; Steam and Aeration
Blower Systems Renovations; Outfall Improvements, Phase 7; Ultraviolet (UV)
Disinfection Upgrades; Plant Control System (1/0) Replacement; and Solids Handling
Facilities Improvement Projects.
• Developed a detailed control system design document resulting in standard wiring,
documentation, and supervisory control and data acquisition (SCADA) screens
across all capital projects. Historical lack of standards has resulted in disparate
installations which have made maintenance and troubleshooting significantly more
challenging.
GOAL INNOVATION AND OPTIMIZATION
• Implemented Central San's first ethernet controlled variable frequency drives which
resulted in simplified wiring and availability of power monitoring and diagnostic
data.
• Installed infrastructure for mobile SCADA software (Dynac).
• Upgraded Secondary Process, Pump & Blower, UV, Heat Recovery Steam Generator,
and Service Air programmable logic control programs from 1980s-era software to
modern software.
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FYs 2018-19 and 2019-20 Strategic Performance and FY 2020-21 Targets
*Will be addressed with new wet scrubber planned as part of the Solids Handling Facility Improvements Project.
Goal Metric FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 Performance
Target Performance Target as of •
National Pollutant
Discharge Zero(0) Zero(0) + r Zero(0) "or
■�r Zero(0)Violations +®r
Elimination System Violations Violations + r Violations ' '
Compliance
Zero(0) , r Zero(0) • r
Title V Compliance 5 Violations ;�� Zero(0)Violations ;��
Violations Violations
Recycled Water Zero(0) Zero(0) ■ r Zero(0) ■ r
Title 22 Compliance Violations Violations '�r Violations Zero(0)Violations ��;
23,771 MT CO2e
Anthropogenic 23,038 MT in Calendar Year
Greenhouse
Gas <25,000 MT CO2e for i fli <25,000 MT 2020 ** J r
Emissions CO2e Calendar ' r CO2e On Track to Meet r
(Per Calendar Year) Year 2019**
Target for Calendar
Year 2021
** Pre-verified figure.
FY 2021-22 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
Maintain eligibility for the National Association of Clean Water Agencies Peak
Achieve 100%Compliance in Performance Award Platinum status.
All Regulations
a
wWs Perform succession planning successfully and appropriately staff the division to meet
rte®
Proactively Plan for Future the challenges of any upcoming departures.
Operational Staffing Needs
Continue to work with Engineering in the design,coordination,and construction of
Manage Assets Optimally to projects effecting the treatment plant.
Prolong Their Useful Life
May 20, 2021 Regular Board Meeting Agenda Packet6fage 272 of 457
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Budget Overview by Expense Category
FIFY 19_20JW19�20 _ FY 20-21 FY 20-21 FY 21-22 Budget to Budgetto
Km ..t D.sclipti. Budget Actual Budget Projection Budget Budget Budget
Variance($) Variance(%
Salaries&Wages $6,052,856 $5,882,708 $4,984,842 $4,821,270 $4,921,680 ($63,162) -1.3%
Employee Benefits 2,128,325 2,159,573 1,572,429 1,612,597 1,474,758 (97,671) -6.2%
Retiree Costs 1,828,627 1,901,234 1,613,679 1,682,858 1,560,969 (52,710) -3.3%
Purchased Property Services 297,700 263,170 320,500 249,500 374,000 53,500 16.7%
Repairs&Maintenance 4,200 2,308 4,000 500 3,000 (1,000) -25.0%
Hauling&Disposal 243,000 197,888 261,000 175,000 288,000 27,000 10.3%
Rentals 500 - 500 4,000 5,000 4,500 900.0%
Cleaning 50,000 62,974 55,000 1 70,000 78,000 23,000 41.8%
Purchased Professional,Technical& 612,000 528,664 681,700 665,050 726,829 45,129 6.6%
Other Services
Professional Services 1,000 4,663 - 3,580 5,129 5,129 -
Technical Services 22,000 171 6,000 - 5,000 (1,000) -16.7%
Other Purchased Services 589,000 523,830 675,700 661,470 716,700 41,000 6.1%
Supplies&Materials 4,532,500 4,722,892 4,597,300 4,569,460 4,800,500 203,200 4.4%
Utilities&Fuel 3,077,600 3,320,442 3,253,800 3,160,000 3,355,000 101,200 3.1%
Chemicals 1,320,000 1,260,616 1,202,000 1,295,000 1,326,000 124,000 10.3%
General Supplies 134,900 141,834 141,500 114,460 119,500 (22,000) -15.5%
Other Expenses 68,400 35,582 41,080 14,943 44,580 3,500 8.5%
Memberships 17,500 8,997 11,830 9,338 10,330 (1,500) -12.7%
Training&Meetings 46,450 24,664 27,500 5,275 32,500 5,000 18.2%
Miscellaneous Other 4,450 1,921 1,750 330 1,750 - 0.0%
Total Expenses $15,520,408 $15,493,822 $13,811,530 $13,615,678 $13,903,316 $91,786 0.7%
*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
OM.Regular Status Employees Year-End IFY 2020-21 IFY 2021-22
Actual
Administrative Assistant - - 1.0
Control Systems Technician - 1.0 1.0
Plant Operations Division Manager 1.0 1.0 1.0
Plant Operations Superintendent 1.0 1.0 1.0
Plant Operations Training Coordinator 1.0 1.0 1.0
Plant Operator 6.0 5.0 8.0
Senior Engineer 1.0 1.0 1.0
Senior Plant Operator 15.0 16.0 13.0
Shift Supervisor 7.0 7.0 7.0
Utility Systems Engineer 2.0 2.0 2.0
Total 34.0 35.0 36.0
EmployeesIFY 2019-20
Limited Duration
Actual
Summer Engineering Assistant 1.0 -Total 1.0 - -
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Budget Modifications and Contributions to Key Priorities
The Plant Operations Division 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 Division Budget for FY 2021-22 is $13.9 million, reflecting an increase of$0.9 million or
0.7% increase over the $13.8 million budgeted in FY 2020-21. This modest increase is largely
attributable to increases in the Utilities & Fuel and Chemicals categories, offset somewhat by savings in
labor costs. The budgeted increase in Utilities & Fuel pertains to an increase in natural gas capacity
held on site to address ongoing PG&E Public Safety Power Shutoff concerns. The budgeted increase in
Chemicals is largely attributable to an increase for lime. Central San's long-time lime hauler went out
of business after facing economic difficulties brought on by the COVID-19 pandemic. The budget
estimates for lime reflect a substantial increase in hauling costs pursuant to the newly negotiated
supplier contract. Despite an Administrative Assistant position being transferred to this division from
the Office of the Director of Operations in FY 2021-22, labor costs overall are decreasing following the
retirement of several tenured employees being replaced by lower step level PEPRA employees.
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Recycled Water Program
OVERVIEW
The Recycled Water Program reflects 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, a Satellite Water Recycling Facility and the Concord Community Reuse Project
(the redevelopment of the Concord Naval Weapons Station).
FY 2020-21 Strategic Accomplishments
ENVIRONMENTAL STEWARDSHIP
• Continued collaborating with Contra Costa Water District (CCWD) and Valley Water to
j complete a Preliminary Feasibility Evaluation of the Refinery Recycled Water Exchange
Project as agreed upon in the Memorandum of Understanding between the three
agencies.
• Collaborated with Dublin San Ramon Services District (DSRSD) and East Bay Municipal
Utility District Recycled Water Authority(DERWA)to support DSRSD in 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 129 million gallons of recycled water to Zone 1.
• Distributed approximately 2.5 million gallons of recycled water through the Commercial
Truck Fill Program.
• Distributed approximately 1 million gallons of recycled water through the Residential Fill
Station.
GOAL FIVE INFRASTRUCTURE RELIABILITY
• Began utilizing Cityworks to track the valve exercising program for the recycled
water distribution system control valves.
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FYs 2019-20 and 2020-21 Strategic Targets and Performance
Goal Metric FY 2019-20 FY i2020-21 Performance
Target Performance Target as of •
13!3 � Recycled Water Title 22 Zero(0) Zero(0) i fl: Zero(0) Zero(0) :A:
Compliance Violations Violations ' ' Violations Violations
Gallons per Year of >_240 Million >_240 126 **
Recycled Water Gallons 221 Million ;A: Million Million :�►
.! Distributed to External (Goal Six) Gallons ' ' Gallons 47 Gallons ry r
Customers* (Goal Two)
* Performance may have been affected by the Residential Recycled Water Fill Station being closed due to COVID-19,impacting the fourth
quarter of FY 2019-20 and FY 2020-21.
**The irrigation season typically grows in April and peaks in July,so this reported figure not only omits future Q3 usage but also omits a
potentially significant amount of future Q4 usage(April to June).
FY 2021-22 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:
400" Objective for FY 2021-22
Continue working with CCWD and Valley Water to advance the Refinery Recycled Water
Exchange Project.
Continue working with DERWA and its representatives to perform the first operation of
the newly constructed diversion facilities in the summer of 2021, which will allow the
temporary diversion of approximately 1.3 MGD of raw wastewater from Central San to
Support Regional DSRSD for the production of recycled water to meet DERWA's peak summer irrigation
Development of demand.
Local Water
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 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Budgetto Budgetto
Account Description Budget Actual Budget Projected Budget Budget Budget
T Variance($) Variance(%)
Salaries&Wages $207,600 $219,153 $243,700 $328,146 $223,600 ($20,100) -8.2%
Employee Benefits 172,300 172,800 185,200 266,819 158,900 (26,300) -14.2%
Purchased Property Services
Repairs&Maintenance 4,000 - 4,000 1,000 3,000 $(1,000) -25.0%
Other Purchased Services 100,500 71,241 100,500 36,000 102,000 1,500 1.5%
Professional Services - - - 500 1,000 1,000 0.0%
Technical Services $100,500 71,241 $100,500 35,500 101,000 500 0.5%
Supplies&Materials 276,000 321,502 310,000 320,500 333,000 23,000 7.4%
Utilities&Fuel 175,000 196,323 175,000 175,000 175,000 - 0.0%
Chemicals 100,000 125,179 132,000 144,000 156,000 24,000 18.2%
General Supplies 1,000 1 - 3,000 1,500 2,000 (1,000) -33.3%
Other Expenses 28,200 21,299 28,200 18,500 28,200 0.0%
Memberships 21,600 17,508 21,600 17,500 21,600 0.0%
Trainings&Meetings 6,600 3,792 6,600 1,000 6,600 0.0%
Total $790,600 $805,996 $871,600 $970,965 $848,700 ($22,900) -2.6%
Distribution (including Residential Fill Station, Satellite Water Recycling Facilityl
FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Budgetto Budgetto
unt Description Budget Actual Budget Projected Budget Budget Budget
6,L,O-_
Salaries&Wages $364,900 $227,407 $246,460 $300,078 $308,000 $61,540 25.0%
Employee Benefits 246,898 138,466 148,080 223,309 218,700 70,620 47.7%
Purchased Property Services
Repairs&Maintenance 23,000 - 23,000 434 23,000 - 0.0%
Other Purchased Services 160,500 24,589 160,700 21,019 180,200 19,500 12.1%
Professional Services 14,000 - 14,000 15,945 72,000 58,000 141.3%
Technical Services 145,000 24,589 145,000 5,074 105,000 (40,000) -27.6%
Other Services 1,500 - 1,700 - 3,200 1,500 88.2%
Supplies&Materials
General Supplies 17,900 8,945 16,900 6,291 22,600 5,700 33.7%
Other Expenses 4,550 4,550 9,550 5,000 109.9%
Memberships - - -
Trainings&Meetings 4,050 120 4,050 8,550 4,500 111.1%
Miscellaneous Other 500 - 500 1,000 500 100.0%
Total $817,748 $399,527 $599,690 $551,131 $762,050 $162,360 27.1%
*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.
Total Recycled Water
Account=Descript FY 2018920 FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Budget Budget
Budget* Actual* Budget Projected* Budget Variance Variance(%)
Total $1,608,348 $1,205,523 $1,471,290 $1,522,096 $1,610,750 $139,460 9.5%
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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 2.8 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 2019-20
Regular Status
Actual
Program Manager 0.5 0.5 0.6
Engineering and Technical Services* 0.7 0.9 0.9
Operations Department* 1.2 1.0 1.3
Total 2.4 2.4 2.8
*FTE count presented is calculated using split estimates from several employees. The estimated FTE allocation presented is for cost
allocation purposes only and is not included in the total FTE counts presented in Tables 11 or 12 for budgetary position control purposes.
IFY 2019-20
limited Duration Employees Year-End FY 2020-21 FY 2021-22
Actual
Fill Station Temporary 2.0 3.0 1.0
Intern 1.0 1.0 0.5
Total 3.0 4.0 1.0
Budget Modifications and Contributions to Key Priorities
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.
The Recycled Water Program Operating Budget for FY 2021-22 is $1.6 million, reflecting an increase of
9.5% or$0.1 million over the prior year. The increase is primarily driven by labor-related costs, which
are increasing pursuant to increases in time expected to be spent on recycled water initiatives and
activities during FY 2021-22, specifically by the Program Manager and Plant Operations staff. The
Chemicals budget increase is attributable to a projected increase in hypochlorite costs.
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Financial Summary for Recycled Water Program
Recycled Water FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Budgetto %Expense Summary Actual Budget Projected .
.•
Variance
Treatment Plant O&M $805,995 $871,600 $947,745 $848,700 ($22,900) -2.6%
Treatment Plant Capital 3,815,221 9,000,000 2,503,052 16,250,000 7,250,000 80.6%
Distribution O&M 399,526 599,690 612,882 762,050 162,360 27.1%
Distribution Capital 147,244 100,000 150,210 250,000 150,000 150.0%
Total Combined $5,167,986 $10,571,290 $4,213,889 $18,110,750 $7,539,460 71.3%
Expense
BudgetRecycled Water FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Budgetto %
Revenue Summary Actual Budget Projected
Variance
Treatment Plant
(Wastewater Cost) $1,848,573 $4,110,713 $1,326,077 $7,171,125 $3,060,412 74.4%
Zone 1 Revenue 503,622 420,000 488,149 432,000 12,000 2.9%
Distribution 1,035,898 2,357,273 745,230 4,234,826 1,877,553 79.6%
(Wastewater Cost)
Residential Fill 132,826 182,160 228,728 226,555 44,395 24.4%
(Wastewater Cost)
Satellite 4,235 62,000 8,698 103,500 41,500 66.9%
Reimbursement
Recycled Water
Exchange 81,689 109,679 149,495 142,911 33,232 30.3%
(Wastewater Cost)
City of Concord 1,561,143 3,329,465 1,267,512 5,799,833 2,470,368 74.2%
Reimbursement
Total Combined $5,167,986 $10,571,290 $4,213,889 $18,110,750 $7,539,460 71.3%
Revenue
Wastewater Cost $18.05 $39.94 $14.38 $72.12 $32.18 80.6%
per RUE
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 2021-22, primarily due to capital improvements, does not mean that recycled water rates will be
increased in that proportion.
The Zone 1 revenue budget estimate of$432,000 allocated entirely to Operations and Maintenance
(O&M) (see Table 5 in Financial Summary). Furthermore, the $5,799,833 City of Concord
Reimbursement is contained within and split between the total O&M fund City of Concord
Reimbursement (see Table 5 in Financial Summary) and total Sewer Construction fund City of Concord
Reimbursement (see Table 11 in Financial Summary). The $103,500 Satellite Reimbursement is
contained within the 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 2021-22
SIF Budget. The SIF revenue for FY 2021-22 is projected to be $1,651,419, and expenses are projected
to be $1,285,000, resulting in closing net SIF reserves of$6,500,000. The budgeted revenues include a
direct allocation of$1,576,419 of Sewer Service Charge Revenue. Previously, allocations to Self-
Insurance were routed through the Operations and Maintenance (O&M) Fund to the SIF. However,
that approach causes the apparent total spending to overcount this allocation, which is included as an
"expenditure" in the 0&M fund, while the Self-Insurance fund also shows expenditures. Allocating
Sewer Service Charge directly to the Self-Insurance fund avoids this issue.
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 loss data in August 2020, with losses through June 30, 2020. The next actuarial
report will be performed in August 2022 using loss data through June 30, 2022.
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.
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Table 2 shows budgeted revenue for FY 2021-22 of$10,000 with expenses of$300,000, resulting in
revenues over expenses of($290,000). This amount will be transferred from Sub-Fund C in order to
maintain the minimum reserve at $1.5 million.
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 allocation of SSC (previously, an 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$1,641,419, which includes an allocation of Sewer
Service Charge of$1,576,419. The budgeted ending balance for FY 2021-22 is projected to be at the
policy specified level of$5 million.
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Table 1 - SIF Summary Overview
.•
RevenuesAwimiv
Sewer Service Charge $- $ $ $1,576,419
SIF Allocation from 0&M Fund 825,000 450,000 550,000 -
Insurance Allocation from Household Hazardous Waste 20,614 20,000 25,000 25,000
Subrogation Recovery 21,035 - - -
Interest Income 141,741 129,900 50,000 50,000
Total Revenue $1,008,390 $599,900 $625,000 $1,651,419
Expenses
Claims Adjusting $- $2,000 $- $3,000
Insurance Consulting - 6,500 - 7,000
Loss Payments 199,659 275,000 120,000 225,000
Losses:Audit Adjustment for GASB-10 - - - -
Legal Services 165,753 80,000 265,000 140,000
Technical Services 149,355 90,000 90,000 60,000
Insurance Premiums 638,380 700,000 775,000 850,000
Total Expenses $1,153,147 $1,153,500 $1,250,000 $1,285,000
Revenue Over Expense ($144,757) ($553,600) ($625,000) $366,419
Projected Reserves
Beginning of Year $6,903,338 $7,043,316 $6,758,581 $6,133,581
Reserve Policy Transfer -
Revenue over Expense (144,757) (553,600) (625,000) 366,419
End of Year Projected Reserves $6,758,581 $6,489,716 $6,133,581 $6,500,000
Allocated Reserves
Actuarial Reserves-GASB-10(Fund A) $1,157,797 $1,500,000 $1,157,797 $1,500,000
Non-Actuarial Reserves-GAS13-10(Fund C) 5,600,784 4,989,715 4,975,784 5,000,000
Total Allocated Reserves $6,758,581 $6,489,716 $6,133,581 $6,500,000
*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
Projected Reserves-Beginning of Year $1,157,797 $1,500,000 $1,157,7971 $1,157,797
Revenues
0&M $_ $_ $_ $_
Subrogation Recovery 2,699 _ _ _
Interest 29,717 24,900 10,000 10,000
Total Revenue $32,416 $24,900 $10,000 $10,000
Expenses
Losses $193,579 $250,000 $75,000 $150,000
Legal Services 165,753 80,000 250,000 100,000
Technical 137,673 85,000 15,000 50,000
Total Expenses $497,005 $415,000 $340,000 $300,000
Revenue Over Expense ($464,589) ($390,100) ($330,000) ($290,000)
Projected Reserves
Transfer(to)/from Sub-Fund C $464,589 $390,100 $330,000 $632,203
Reserve Increase Transfer from Fund C _ _ _ _
Total Reserves Projected End of Year $1,157,797 $1,500,000 $1,157,797 $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 _
Awns ab"M.
Beginning Reserves $5,745,541 $5,543,315 $5,600,784 $4,975,784
Revenues
Sewer Service Charge Allocation $- $- $- $1,576,419
0&M 825,000 450,000 550,000 -
Subrogation Recovery 18,336 - - -
Insurance Recovery from Household Hazardous Waste
Partners 20,614 20,000 25,000 25,000
Interest 112,024 105,000 40,000 40,000
Total Revenue $975,974 $575,000 $615,000 $1,641,419
Expenses
Losses $6,080 $25,000 $45,000 $75,000
Legal - - 15,000 40,000
Technical 11,682 5,000 75,000 10,000
Insurance Premiums 638,380 700,000 775,000 850,000
Insurance Consulting Services - 6,500 - 7,000
Claims wAdjustment - 2,000 - 3,000
Total Expenses $656,142 $738,500 $910,000 $985,000
Revenue Over(Under)Expense $319,832 ($163,500) ($295,000) $656,419
Projected Reserves
Transfer(to)/from Sub-Fund A ($464,589) ($390,100) ($330,000) ($632,203)
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 $5,600,784 $4,989,715 $4,975,784 $5,000,000
* 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
$1,000,00
$0 Sol
. ■
$
FY 2019-20 Actual FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Budget
■Total Revenue 0Total Expenses ■Tota l Reserves Projected End of Year
Figure 2 - History of Loss Payment and Insurance Premiums
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0 U1 0
FY 2019-20 Actual FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 Budget
■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 2019-20 Actual FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 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 2019-20 Actual FY 2020-21 Budget FY 2020-21 Projected FY 2021-22 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
• Pumped Zone Fees
• Property Taxes
• Interest
• Sewer Service Charges
• 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 2021-22. Additionally, Central San is exploring a debt issuance for June 2021, which
may be used to fund a substantial portion of the FY 2021-22 CIB. If this debt issuance proceeds, a
budget amentment for FY 2021-22 is anticipated.
i
a
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Capital Improvement Budget Project Prioritization
The projects included in the FY 2021-22 CIB have been prioritized to ensure the best use of District
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. Scoring for each project used twenty weighted criteria, with
emphasis on projects currently under construction, those associated with asset management,
regulatory requirements, prior commitments, and those supporting business functions.
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 falls into three categories: 1) Essential Commitments; 2) Project
Benefits; and 3) Operational Reliability, as summarized below:
Criteria Category:Essential Commitments
Complies with Regulatory Requirements and Mandates ;
Meets Commitment with Outside Agency or Existing Contract
Reduces Potential Health or Safety Hazards
Implements Board of Directors' Policy/Priority
Increases Capacity to Meet Projected Build-out
Criteria Category:Project Benefits
Impacts Phasing or Implementation Schedule for Other Projects
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Optimizes Capital and/or Operations and Maintenance Costs
Increases Sustainable Use of Natural or Existing Resources
Reduces Social and or Environmental Impacts
Supports Timely Adoption of Technology Improvements -
Criteria Category: • .
Consistent with Asset Management Program -y .
Improves Reliability and System Performance
Improves Facility-Wide Resiliency
Required for Safe& Reliable Operations
Key Asset Replacement
Project Criticality Ranking
In addition, all projects for FY 2021-22 have been listed in order of priority based on the criteria
described above with other factors that include consequence of failure, project development, potential
contract impacts, and more so that the entire capital program can be assessed. This ranking is
applicable at the time the Budget is adopted. However, the score and the ranking will be continuously
re-evaluated during the year as projects evolve. For example, once a construction contract is awarded
and executed for a project, its score would increase and result in a ranking change. It should also be
noted that the priority ranking is not reflective of the order in which the project is started. The score
and ranking are more a reflection of an importance factor, than timing or a priority in which the project
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is delivered. The project ranking, number, name, program, and score (maximum score is 400) as of
April 23, 2021 are shown below:
Program
.- kL
1 8253 Covid-19 Response GI 345
2 7328 Influent Pump Electrical Improvements TP 330
3 7348 Solids Handling Facility Improvements - Phase 1 TP 325
4 8436 Pump Station Upgrades - Phase 1 CS 325
5 7361 Filter Plant and Clearwell Improvements - Phase 1A RW 315
6 7375 Contractor Staging Improvements TP 305
7 100015 Electric Blower Improvements TP 295
8 7339 Plant Control System I/O Replacement TP 290
9 8250 ERP Replacement GI 280
10 8451 Collection System Sewer Renovation - Phase 1 CS 270
11 8443 Large Diameter Pipeline Inspection Program - Phase 1 CS 255
Uniform Public Construction Cost Accounting Act (UPCCAA)
12 100001 TP 235
Urgent Projects FY 2020-25+
13 7304 Programmable Logic Controller(PLC) Systems Upgrades TP 230
14 7349 Steam Aeration & Blower Systems Renovations TP 225
15 100005 Cured-In-Place Pipe Blanket Contract (FY 2021-25) CS 215
16 P1246 Large Diameter Pipeline Inspection Program - Phase 2 CS 210
7370 Annual Infrastructure Replacement FY 2019-25+ TP 210
17 7369 Piping Renovation - Phase 10 TP 205
18 7315 Applied Research & Innovations TP 200
100012 UV Disinfection Replacement TP 200
100013 UV Hydraulic Improvements TP 200
P1298 Steam Systems Renovations TP 200
8517 Vehicle Replacement Program FY 2016-26 GI 200
19 100007 Large Diameter Renovation Program CS 190
P1283 Aeration Basin Diffusers and Seismic Improvements TP 190
20 8442 Pump Station Equipment& Piping Replacement- Phase 2 CS 185
8444 Force Main Inspection Program - Phase 1 CS 185
8448 Manhole Modifications CS 185
8240 IT Development FY 2016-25 GI 185
21 8457 Pump Station Upgrades - Phase 2 CS 175
22 100008 Laboratory Roof&Seismic Upgrades TP 170
8516 District Equipment Acquisition GI 170
23 8463 North Orinda Sewer Renovation - Phase 8 CS 165
8464 Martinez Sewer Renovation - Phase 7 CS 165
8465 Walnut Creek Sewer Renovation - Phase 15 CS 165
8466 Danville Sewer Renovation - Phase 4 CS 165
100009 MHF Hearth Replacement TP 165
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-7 100011 Plant Electrical Replacement and Rehabilitation TP 165
100002 Filter Plant and Clearwell Improvements- Phase 1B RW 165
24 TBD Collection System Master Plan 2021 Update CS 160
100010 Air Conditioning and Lighting Renovations Project TP 160
25 5991 Pleasant Hill Sewer Renovation - Phase 2 CS 150
7341 Walnut Creek/Grayson Creek Levee Rehab TP 150
7363 Treatment Plant Planning TP 150
7366 Recycled Water Distribution Systems Renovations Program RW 150
7368 Water Exchange Project RW 150
26 8450 Development Sewerage Support CS 145
8230 Capital Legal Services GI 145
27 7357 Plant-Wide Instrumentation Upgrades TP 130
28 TBD Security Improvements Study FY 2021 - 25 GI 125
29 8449 Collection System Modeling Support CS 120
100006 Contractual Assessment District Project CS 120
30 8419 Collection System Planning CS 115
8236 District Easement Acquisition GI 115
100003 Property Repairs and Improvements GI 115
100004 HOB Exterior Repairs GI 115
31 7373 Fire Protection System - Phase 3 TP 110
32 100014 MRC Building and Maintenance Shops Improvements TP 105
33 7355 Odor Control Upgrades - Phase 1 TP 100
TBD Zone 1 Recycled Water 2021+ RW 100
34 7371 Condition Assessment of Buried Yard Pipelines TP 95
TBD TP Safety Enhancements - Phase 6 TP 95
35 8447 Pump Station Security Improvements CS 85
8251 Capital Improvement Plan & Budget (Document Management) GI 85
36 7354 Treatment Plant Security Improvements TP 60
37 8252 POB E.V. Charging Station GI 45
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
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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
energy-efficient equipment or treatment processes, and renewable energy projects such as solar or
wind.
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Example of Project Driver(s)
Project Drivers Each project is described on the following pages. Each
project summary includes project name, description,
IL prioritization, purpose, operating department impact and
funding source, location, budgetary information, and
Aging Infrastructure capacity drivers (i.e., the main impetus for the project). The main
driver(s) for each project is (are) identified by highlighting
in yellow background color and bold text. Driver(s) that is
(are) not as significant or not relevant is (are) displayed in
Regulatory Sustainability gray.
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Capital Improvement Budget FY 2020-21 Accomplishments
Collection System Sewer Replacement: Several projects have replaced or rehabilitated up to 6.8 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.
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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 project is expected to be
awarded in the fall of 2020 with construction completion in 2025.
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3-D Construction Modeling of the Solids Handling Facility Improvements Project
Safety projects include construction of the Emergency External Stairway for the Solids Conditioning
Building, which provides for employee safety for emergency egress.
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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:
• Pump Station Upgrades— Phase 1:This construction project is focused on needed replacement of
electrical, mechanical, and back-up power equipment at the Moraga and Orinda Crossroads
Pumping Stations. The construction for the Flush Kleen Pumping Station was completed last fiscal
year.
• Pump Station Upgrades— Phase 2: Land acquisitions and detailed design are ongoing for needed
electrical and mechanical equipment replacements at the Martinez, Maltby, and Fairview Pumping
Stations. Construction is expected to begin in late FY 2021-22.
• Filter Plant and Clearwell Improvements—Phase 1A: Started construction of this large project which
includes replacement of deteriorated electrical infrastructure at the Clearwell, new pumps, recycled
water storage improvements, and filter system modifications. Construction is expected to continue
through FY 2021-22.
• Steam and Aeration Blower Systems Renovation: Condition assessments are nearing completion for the
steam and heat recovery systems at the treatment plant and several other areas in the aeration system,
as well as the treatment plant electrical systems. Several projects have been identified as a result and
will be implemented in phases over time. The design of the first phase, which consists of the installation
of three electric blowers, is nearing completion and the installation should begin this fiscal year. The
second phase will focus on the Aeration System and will include the replacement of the diffusers and
seismic upgrades. Third and fourth phases will address the Secondary Treatment Facilities and the
Steam System, respectively.
• Solids Handling Facility Improvements Project:Three related solids projects were and will be
constructed ahead of the main project, which include construction of the Emergency Sludge Loading
Facility Improvements Project (Completed), Treatment Plant Safety Enhancements- Phase 5 Project (In
Construction), and the Contractor Staging Improvements (starting construction FY 2021-22).The Solids
Project construction contract is expected to be awarded in FY 2021-22.
• Projects completed: Several projects are either at Substantial Completion or Closed including the
Mechanical and Concrete Renovations (Closed), and Recycled Water Clearwell Repairs (Closed). 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 regulatory
requirements.
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- 1
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Constructing new steel storage tanks and replacing a failed transformer under the Filter Plant and Clearwell
Improvements Project—Phase 1
FY 2021-22 Capital Improvement Budget
The CIB Budget to date is approximately$159.27 million. The budget needed for all ongoing and new
projects in FY 2021-22 is $107.96 million. The future year estimated budget for these projects is at
$389.26 million. Combined the total estimated budget for the identified projects in the FY 2021-22 CIB
is $656.48 million. The 2021 Ten-Year CIP is projected to be $939.71 million as shown below in Table 1:
Table 1 - FY-2021-22 CIB per Program
Budget—to—D. i Total Estimated i
Program (1) (2) (3) Project Budgets Ten Year CIP
Collection System $60,516,768 $39,795,000 $63,673,000 $163,984,768 $334,923,000
Treatment Plant 66,697,274 45,230,000 254,373,000 366,300,274 497,225,000
General Improvements 15,799,506 3,830,000 6,170,000 25,799,506 22,585,000
Recycled Water 16,254,000 16,600,000 42,345,000 75,199,000 59,781,000
CIB Contingency - 2,500,000 22,700,000 25,200,000 25,200,000
Totals: $159,267,548 $107,955,000 $389,261,000 $656,483,548 $939,714,000
The Budget to Date(1)above includes approximately 80%budget already spent for on-going projects.
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FY 2021-22 Capital Improvement Budget Construction Commitments
As of April 30, 2021, the total construction commitments authorized by the Board in FY 2020-21 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 1 1 $100
1 1 1
r—� 1 143.41
$801 1 $80
121.9 1
1 #
$60 j ' i $60
r37 r
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$40 j53 r $40
'66.1 j
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$20 i ; $20
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$0 $0
19/20 0/21 21/22 22/23
Fiscal Year
OApproved and Projected Budget per FY
ti 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.
"To be updated prior to budget adoption."
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FY 2021-22 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 2021-22, the emphasis will be on
thirteen large projects (those projects over $2.0 million), which together account for$85.69 million or
79% of the total CIB for the year. Each major project budget is shown below:
1. Solids Handling Facility Improvements
FY-2021-22 Budget: $21,000,000 Estimated total project cost: $184,984,000
Estimated completion date: FY 2025-26
901
FY-2021-22 Budget: $16,000,000 Estimated total project cost: $38,589,000
Estimated completion date: FY 2022-23
3. Pump Station Upgrades—Phase 1 Uw-
FY-2021-22 Budget: $12,644,000 Estimated total project cost: $35,451,000
Estimated completion date: FY 2022-23
ImprovementsVElectric Blower
FY-2021-22 Budget: $7,400,000 Estimated total project cost: $15,750,000
Estimated completion date: FY 2023-24
FY-2021-22 Budget: $4,900,000 Estimated total project cost: $5,400,000
Estimated completion date: FY 2021-22
FY-2021-22 Budget: $4,600,000 Estimated total project cost: $5,300,000
Estimated completion date: FY 2022-23
South7. Orinda
FY-2021-22 Budget: $4,600,000 Estimated total project cost: $6,100,000
Estimated completion date: FY 2021-22
FY-2021-22 Budget: $3,250,000 Estimated total project cost: $9,586,000
Estimated completion date: FY 2022-23
—1
FY-2021-22 Budget: $3,000,000 Estimated total project cost: $38,950,000
Estimated completion date: FY 2024-25
Y-2021-22 Budget: $2,200,000 Estimated total project cost: $5,950,000
F
Estimated completion date: FY 2022-23
FY-2021-22 Budget: $2,100,000 Estimated total project cost: $25,800,000
Estimated completion date: FY 2026-27
Estimated total project cost: $5,300,000
FY-2021-22 Budget: $2,000,000
Estimated completion date: FY 2022-23
Estimated total project cost: $35,280,000
FY-2021-22 Budget: $2,000,000 o
Estimated completion date: FY 2026-27
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Capital Improvement Budget Modifications
Changes to projects do occur and include rescheduling, consolidation for bidding, 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 15, North Orinda Sewer
Renovation — Phase 8, South Orinda Sewer Renovation — Phase 8, and Martinez Sewer
Renovation — Phase 7, as well as Danville Sewer Renovation — Phase 4 as planned and within
budget.
• The UV Replacement and UV Hydraulic Improvement Projects will be combined into one project
due to the interdependency of the design and construction.
• Steam and Aeration Improvement Project: Elements identified as part of the condition assessment
and will be completed in multiple projects as follows:
a. Phase 1 - Electrical Blower Improvements Project
b. Phase 2 -Aeration Basins Diffusers and Seismic Renovation Project
c. Phase 3 - Secondary Treatment Improvements Project
d. Phase 4 - Steam System Renovation Project
• Combined the Electric Blower Improvements and Piping Renovation- Phase 10 into one
construction contract due to the similar scope and project locations.
• Combined the Contractor Staging project and the Treatment Plant Security Improvements for
bidding purposes into one construction contract.
Modification of Scope or Budget:
• The Pump Station Upgrades— Phase 1 was increased by $420,000 due to a recent and
unexpected change in air regulations.
• Outfall Improvements— Phase 7 budget was transferred to initiate a new project, Outfall
Monitoring improvements at $610,000 to address regulatory concerns and repairs of the
existing level monitoring system.
• The Contractor Staging Improvements project budget was increased by $650,000 to address
contaminated soils issues for the construction project.
• The Solids Handling Facility Improvements, Piping Phase 10, and Electrical Blower Projects
budget were increased. These budgets were increased for scope items such as temporary
dewatering, sludge hauling costs, and temporary electrical systems under the Solids project,
additional electrical work for VFD replacements for Piping Phase 10, and increased scope to
replace the blower filter houses and exterior civil improvements to accommodate the new
transformers for the Electric Blower project.
Renaming Projects:
• UV Disinfection Replacement(DP-100012) and UV Hydraulic Improvements (DP-100013) will be
merged into a single project entitled "UV Disinfection Replacement(DP-100012)".
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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.
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CEQA Compliance Summary for FY 2021-22
• �.
COLLECTION SYSTEM PROGRAM
5991 Pleasant Hill Sewer Renovation—Phase 2 X
8419 Collection System Planning X
8436 Pump 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
Planning is exempt; more information is
8457 Pump Station 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
8463 North Orinda Sewer Renovation-Phase 8 X
8464 Martinez Sewer Renovation-Phase 7 X
8465 Walnut Creek Sewer Renovation-Phase 15 X
8466 Danville Sewer Renovation-Phase 4 X
100005 Cured-in-Place Pipe Blanket Contract FY 2020-25 X
100006 Contractual Assessment District Project X
Financing
100007 Large Diameter Piping Renovation Program X
100017 San Ramon Electrical Improvements X
Planning is exempt; more information is
TBD Collection System Master Plan 2021 Update X needed on future aspects of this project to
determine appropriate CEQA documentation.
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Program/Project • Document Required
TREATMENT PLANT PROGRAM
7304 Programmable Logic Controller Systems X
Upgrades
7315 Applied Research and Innovations 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
7349 Steam and Aeration Blower Systems Renovations X
7352 Ultraviolet 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
7363 Treatment Plant Planning X
7364 Treatment Plant Safety Enhancements—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
7375 Contractor Staging Improvements X
100001 UPCCAA Urgent Projects FY 2020-25 X
100008 Laboratory Roof and Seismic Upgrades X
100009 Hearth Replacement X
100010 Air Conditioning and Lighting Renovation X
100011 Plant Electrical Replacement and Rehabilitation X
100012 UV Disinfection Replacement and Hydraulic X
Improvements
100014 MRC Building and Maintenance Shops X
Improvements
100015 Electric Blower Improvements X
100018 Outfall Monitoring Improvements X
TBD Aeration Basin Diffusers and Seismic X
Improvements
TBD Wet Weather Basins Improvements X
TBD TP Safety Enhancements-Phase 6 X
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GENERAL IMPROVEMENTS PROGRAM
8230 Capital Legal Services X
8236 District Easement Acquisition X
8240 IT Development 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.
8252 POB E.V. Charging Station X
8253 COVID-19 Response X
8516 District Equipment Acquisition X
8517 Vehicle Replacement Program X
100003 Property Repairs and Improvements X
100004 HOB Exterior Repairs X
TBD Security Improvements FY 2021-25 X
Planning is exempt; more information is
TBD Technology Strategic Plan X needed on future aspects of this project to
determine appropriate CEQA documentation.
ECYCLED WATER PROGRAM
7361 Filter Plant and Clearwell Improvements—Phase X
1A
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.
100002 Filter Plant and Clearwell Improvements—Phase X
113
TBD Zone 1 Recycled Water 2021+ X
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Capital Improvement Budget - Collection System Program
The following are the major points of emphasis for the FY 2021-22 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 and force main 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
• 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 2021-22 Collection System Program Budget/Project Summar
Project Project Name Budget-to- FY2021-22 Future Total
D.
5991 Pleasant Hill Sewer Renovation- Phase 2 $960,000 $500,000 $- $1,460,000
8419 Collection System Planning 1,385,000 200,000 200,000 1,785,000
8436 Pump Station Upgrades-Phase 1 22,807,000 12,644,000 - 35,451,000
8442 Pump Station Equipment& Piping 364,000 200,000 200,000 764,000
Replacement-Phase 2
8443 Large Diameter Pipeline Inspection 1,295,000 500,000 - 1,795,000
Program-Phase 1
8444 Force Main Inspection Program- Phase 1 625,000 500,000 - 1,125,000
8447 Pump Station Security Improvements 282,000 75,000 238,000 595,000
8448 Manhole Modifications 1,607,925 400,000 350,000 2,357,925
8449 Collection System Modeling Support 423,000 120,000 - 543,000
8450 Development Sewerage Support 3,132,316 900,000 4,635,000 8,667,316
8451 Collection System Sewer Renovation- 4,562,527 1,136,000 - 5,698,527
Phase 1
8457 Pump Station Upgrades-Phase 2 2,950,000 3,000,000 33,000,000 38,950,000
8458 Martinez Sewer Renovation-Phase 6 4,470,000 - - 4,470,000
8459 Lafayette Sewer Renovation-Phase 14 4,200,000 - - 4,200,000
8460 Walnut Creek Sewer Renovation-Phase 5,173,000 - 5,173,000
14
8461 South Orinda Sewer Renovation-Phase 8 1,500,000 4,600,000 - 6,100,000
8463 North Orinda Sewer Renovation- Phase 8 500,000 4,600,000 200,000 5,300,000
8464 Martinez Sewer Renovation - Phase 7 500,000 2,000,000 2,800,000 5,300,000
8465 Walnut Creek Sewer Renovation-Phase 500,000 4,900,000 - 5,400,000
15
8466 Danville Sewer Renovation-Phase 4 500,000 1,000,000 3,800,000 5,300,000
100005 Cured-In-Place Pipe Blanket Contract 600,000 250,000 750,000 1,600,000
(FY 2021-25)
100006 Contractual Assessment District Project 500,000 500,000 2,000,000 3,000,000
100007 Large Diameter Piping Renovation 1,500,000 500,000 15,000,000 17,000,000
Program
100017 San Ramon Electrical Improvements 180,000 520,000 500,000 1,200,000
TBD* Collection System Master Plan 2021 - 750,000 - 750,000
Update
Collection System Total: $60,516,768 $39,795,000 $63,673,000 $163,984,768
*New Projects in FY 2021-22
May 20, 2021 Regular Board Meeting Agenda PackeJp(Fage 308 of 457
Page 225 of 349
Pleasant Hill Sewer Renovation- Phase 2 - District Project 5991
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 25 150
Purpose:
To replace and renovate small diameter sewers within the roject Drivers
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.
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). a z
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 2021-22 FY 2022-23 Future FYs Total
Planning $183,000 $- $- $- $183,000
Design 527,000 - - 527,000
Construction 250,000 500,000 - 750,000
FY Total $960,000 $500,000 $- $- $1,460,000
May 20, 2021 Regular Board Meeting Agenda Packe$e:Page 309 of 457
Page 226 of 349
Collection System Planning— District Project 8419
Program Phase Priority Rank Ranking Score
Collection System Planning 30 115
Purpose:
To complete evaluations for upcoming regulatory requirements, Project Drivers
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 1,535 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
BudgetProject
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $1,385,000 $200,000 $200,000 $- $1,785,000
Design - - - - -
Construction - - - - -
FY Total $1,385,000 $200,000 $200,000 $- $1,785,000
May 20, 2021 Regular Board Meeting Agenda Packe$e:Fage 310 of 457
Page 227 of 349
Pump Station Upgrades - Phase 1 - District Project 8436
Program Phase Priority Rank Ranking Score
Collection System Construction 4 325
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 (CWMP), a Regulatory Sustainability
detailed condition assessment of the pump 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:
The following are major elements included in the
project, which is currently in construction:
• Add grinder(s) at the Moraga Pumping Station
• Construct a surge tank and canopy at Orinda
wsa
Crossroads
• Replace wet weather diesel engine driven pumps
with electric motors at Moraga and Orinda Crossroads
• 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
• New PG&E Services and entry panels.
Operating Department Impact and Funding Source:
The impacts on the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Moraga, Flush Kleen, and Orinda Crossroads Pumping Stations
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $450,000 $- $- $- $450,000
Design 3,200,000 - - - 3,200,000
Construction 19,157,000 12,644,000 - - 31,801,000
FY Total $22,807,000 $12,644,000 $- $- $35,451,000
May 20, 2021 Regular Board Meeting Agenda Packe$efage 311 of 457
Page 228 of 349
Pump Station E ui ment and Piping-Replacement- Phase 2 - District Project 8442
Program Phase Priority Rank Ranking Score
Collection System Construction 20 185
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.
A
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
• Purchase a portable bypass pump for Lower Orinda Pumping Station
• 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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - - -
Construction 364,000 200,000 200,000 - 764,000
FY Total $364,000 $200,000 $200,000 $- $764,000
May 20, 2021 Regular Board Meeting Agenda Packe$efage 312 of 457
Page 229 of 349
Large Diameter Pipeline Inspection Program- Phase 1 - District Project 8443
Program Phase Priority Rank Ranking Score
Collection System Planning 11 255
Purpose:
To assess the condition of large diameter trunks and interceptors —EmProject 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 2021-22 FY 2022-23 Future FYs Total
Planning $1,295,000 $500,000 $- $- $1,795,000
Design - - -
Construction - - - - -
FY Total $1,295,000 $500,000 $- $- $1,795,000
May 20, 2021 Regular Board Meeting Agenda Packe$e._'age 313 of 457
Page 230 of 349
Force Main Inspection Program — Phase 1 — District Project 8444
Program Phase Priority Rank Ranking Score
Collection System Planning 20 185
Purpose:
To assess the condition of force mains and confirm the timing for Project Drivers
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
Pump Station Upgrades Project- Phase 2)
• Other pump 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 2021-22 FY 2022-23 Future FYs Total
Planning $625,000 $500,000 $- $ $1,125,000
Design - - - -
Construction - - - -
FY Total $625,000 $500,000 $- $- $1,125,000
May 20, 2021 Regular Board Meeting Agenda Packe$e('age 314 of 457
Page 231 of 349
Pump Station Security Improvements — District Project 8447
Program Phase Priority Rank Ranking Score
Collection System Construction 35 85
Purpose:
To improve physical security at the pump stations and to protect t Drivers'
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, 5) Threat Analysis, 6) Risk/Resilience Analysis, and
7) Risk/Resilience Management.
Description:
Findings related to the pump 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): Pump Stations
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $-
Design 131,000 - - - 131,000
Construction 151,000 75,000 82,000 156,000 464,000
FY Total $282,000 $75,000 $82,000 $156,000 $595,000
May 20, 2021 Regular Board Meeting Agenda Packe$e-'age 315 of 457
Page 232 of 349
Manhole Modifications — District Project 8448
Program Phase Priority Rank Ranking Score
Collection System Construction 20 185
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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - - - -
Construction 1,607,925 400,000 350,000 2,357,925
FY Total $1,607,925 $400,000 $350,000 $- $2,357,925
May 20, 2021 Regular Board Meeting Agenda Packe$efage 316 of 457
Page 233 of 349
Collection System Modeling Support— District Project 8449
Program Phase Priority Rank Ranking Score
Collection System Construction 29 120
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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - - -
Construction 423,000 120,000 - - 543,000
FY Total $423,000 $120,000 $- $- $543,000
May 20, 2021 Regular Board Meeting Agenda Packe$epage 317 of 457
Page 234 of 349
Development Sewerage Su ort— District Project 8450
Program Phase Priority Rank Ranking Score
Collection System Construction 26 145
Purpose: I Project Drivers
To capitalize Central San force account labor and other expenses
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 -rz
record drawing/mapping efforts are required to ensure thatT
installed sewers meet Central San's Standard Specifications for
Design and Construction. These activities are capitalized under this Standard
project. Specifications
for Design{s.Construction
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
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - - -
Construction 3,132,316 900,000 927,000 3,708,000 8,667,316
FY Total $3,132,316 $900,000 $927,000 $3,708,000 $8,667,316
May 20, 2021 Regular Board Meeting Agenda Packe$}(Fage 318 of 457
Page 235 of 349
Collection System Sewer Renovation — Phase 1 — District Project 8451
Program Phase PriorilIM6. Ranking Score
Collection System Design/Construction 10 270
Purpose:
To plan for and design sewer replacement projects for collection ect 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
developed to prioritize the timing for sewer replacement and to �•��
develop a risk-based sewer replacement program. The Collection �o.000.a�o
System Sewer Renovation Project— Phase 1 will span the next five 3 30=0W
fiscal years (FYs 2018-23). Central San was planning to replace up
70,000,900
to 7.6 miles per year with increasing in years 10 through 20 in the
19.900.000
Capital Improvement Program. Phase 1's current approach is to
replace approximately 6-7 miles per year.
Forecw*x rv �nrv � N�
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. Future projects in such areas include:
• Lafayette, Moraga, and Orinda;
• Walnut Creek, Alamo, and Diablo;
• Martinez, Pleasant Hill, Pacheco, Concord, and Clyde;
• Danville and San Ramon; and
• Unincorporated areas within Contra Costa County
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $_
Design - 1,000,000 - - 1,000,000
Construction 4,562,527 136,000 - - 4,698,527
FY Total $4,562,527 $1,136,000 $- $- $5,698,527
May 20, 2021 Regular Board Meeting Agenda Packe$}page 319 of 457
Page 236 of 349
Pump Station Upgrade - Phase 2 - District Project 8457
L Priority Rank: Ranking Score
Collection System Design 21 175
Purpose:
To address aging infrastructure and reliability needs at the ect Drivers
Martinez, Fairview, and Maltby Pump Stations. Aging Capacity
Infrastructure P y
Drivers:
As part of the CWMP, a comprehensive condition assessment of Regulatory Sustainability
the pumping stations has identified several structural, mechanical,
electrical, and instrumentation improvements. An Arc Flash
Study has also identified several improvements required at
these pump stations.
Description: '
The following are major elements included in the project:
• Replace corroded steel dry pits with new wet wells at the
Fairview and Maltby Pump Stations
• Replace backup generators and instrumentation
• 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 pump 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 Pump Stations
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $150,000 $- $- $- $150,000
Design 2,800,000 1,100,000 - - 3,900,000
Construction - 1,900,000 10,000,000 23,000,000 34,900,000
FY Total $2,950,000 $3,000,000 $10,000,000 $23,000,000 $38,950,000
May 20, 2021 Regular Board Meeting Agenda Packe$}:page 320 of 457
Page 237 of 349
Martinez Sewer Renovation- Phase 6 - District Project 8458
Program Phase Priority Rank Ranking Score
Collection System Construction 23 165
Purpose: I Project Drivers
To replace and renovate small diameter sewers within the city and
unincorporated areas of Martinez. 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.
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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - - 500,000
Construction 3,970,000- - - 3,870,000
FY Total $4,470,000 $- $- $- $4,470,000
May 20, 2021 Regular Board Meeting Agenda Packe$}fage 321 of 457
Page 238 of 349
Lafayette Sewer Renovation— Phase 14 — District Project 8459
Program Phase Priority Rank Ranking Score
Collection System Construction 23 165
Purpose: I M Project Drivers
To replace and renovate small diameter sewers within the city and
unincorporated areas of Lafayette. Aging Capacity
Infrastructure
Drivers:
Central San's 1,500+ mile collection system has pipe segments Regulatory Sustainability
that range in age from new to more than 100 years old. Some of
the pipe segments are at or near the end of their useful lives
as evidenced by their need for frequent maintenance, high
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 fiy
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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - - 500,000
Construction 3,600,000 - - 3,600,000
FY Total $4,200,000 $- $- $- $4,200,000
May 20, 2021 Regular Board Meeting Agenda Packe$}fage 322 of 457
Page 239 of 349
Walnut Creek Sewer Renovation - Phase 14- District Project 8460
Program Phase Priority Rank Ranking Score
Collection System Construction 23 165
Purpose: M Project Drivers
To replace and renovate small diameter sewers within the
city of Walnut Creek and unincorporated Walnut Creek. 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.
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 r
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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $ $- $- $100,000
Design 500,000 - - 500,000
Construction 4,573,000- - - 4,573,000
FY Total $5,173,000 $- $- $- $5,173,000
May 20, 2021 Regular Board Meeting Agenda Packe$}._'age 323 of 457
Page 240 of 349
South Orinda Sewer Renovation— Phase 8 — District Project 8461
Program Phase Priority Rank Ranking Score
Collection System Construction 23 165
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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - - 500,000
Construction 900,000 4,600,000 - - 5,500,000
FY Total $1,500,000 $4,600,000 $- $- $6,100,000
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Page 241 of 349
North Orinda Sewer Renovation- Phase 8 - District Project 8463
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 23 165
Purpose: M 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 T
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 North Orinda Sewer Renovation - Phase 8 Project will replace or rehabilitate up to approximately
8,000 feet of small diameter sewers located in both public right-of-way and easements within the
northern portion of the city of Orinda, unincorporated Orinda, north of Highway 24.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s):Orinda and Moraga
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 400,000 200,000 - 600,000
Construction - 4,400,000 200,000 - 4,600,000
FY Total $500,000 $4,600,000 $200,000 $- $5,300,000
May 20, 2021 Regular Board Meeting Agenda Packe$}-'age 325 of 457
Page 242 of 349
Martinez Sewer Renovation— Phase 7 — District Project 8464
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 23 165
Purpose:
ect Drivers
To replace and renovate small diameter sewers within the city and
unincorporated areas of Martinez. 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.
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 - Phase 7 Project 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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 400,000 200,000 - - 600,000
Construction - 1,800,000 2,800,000 - 4,600,000
FY Total $500,000 $2,000,000 $2,800,000 $- $5,300,000
May 20, 2021 Regular Board Meeting Agenda Packe$}fage 326 of 457
Page 243 of 349
Walnut Creek Sewer Renovation — Phase 15 — District Project 8465
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 23 165
Purpose:
To replace and renovate small diameter sewers within the M1 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
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- Phase 15 Project 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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 400,000 200,000 - 600,000
Construction - 4,700,000 - - 4,700,000
FY Total $500,000 $4,900,000 $- $- $5,400,000
May 20, 2021 Regular Board Meeting Agenda Packe$}!page 327 of 457
Page 244 of 349
Danville Sewer Renovation — Phase 4 — District Project 8466
. 0- . 11 Nirm lority Rank Ranking Score
Collection System Design 23 165
Purpose:
To replace and renovate small diameter sewers within the Project
town of Danville or nearby areas. 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. � {�. -,a�„
More than 300 miles of the small diameter sewers in the -
collection system were constructed prior to 1956. The . M'
methods and materials of construction used at that time do s
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
M, a
to control future maintenance requirements and costs, to
minimize the number of overflows, to limit the quantity of
rainfall entering the collection system, and to improve the
level of service provided to customers.
Description:
The Danville Sewer Renovation - Phase 4 Project will replace or rehabilitate approximately up to 6,000
feet of small diameter sewers located in both public right-of-way and easements within the town of
Danville.
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
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 400,000 100,000 - 500,000
Construction - 900,000 3,800,000 - 4,700,000
FY Total $500,000 $1,000,000 $3,800,000 $- $5,300,000
May 20, 2021 Regular Board Meeting Agenda Packe$2(Fage 328 of 457
Page 245 of 349
Cured-in-Place Pil2e Blanket Contract 2020-2025 — District Project 100005
Program Phase Priority Rank Ranking Score
Collection System Design/Construction 15 215
Purpose: IN 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
that will allow Central San to use a contractor to perform urgent .
CIPP work. # IF Y ,
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $-
Design 150,000 - - - 150,000
Construction 450,000 250,000 250,000 500,000 1,450,000
FY Total $600,000 $250,000 $250,000 $500,000 $1,600,000
May 20, 2021 Regular Board Meeting Agenda Packe$2:Page 329 of 457
Page 246 of 349
Contractual Assessment District Project Financing— District Project 100006
Program Phase Priority Rank Ranking Score
Collection System Construction 29 120
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: �� � F•
• Central San's permit application, inspection, and related fees. _ a
• Any CAD, Alhambra Valley Assessment District or
reimbursement fees owed for an existing CAD 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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - - -
Construction 500,000 500,000 250,000 1,750,000 3,000,000
FY Total $500,000 $500,000 $250,000 $1,750,000 $3,000,000
May 20, 2021 Regular Board Meeting Agenda Packe$2:Fage 330 of 457
Page 247 of 349
Large Diameter 3iping Renovation Program— District Project 100007
Program Phase Priority Rank Ranking Score
Collection System Design 19 190
Purpose: Project Drivers
To plan for and design large diameter trunk and interceptor 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.
M
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 2021-22 FY 2022-23 Future FYs Total
Planning $400,000 $- $- $- $400,000
Design 1,100,000 500,000 - - 1,600,000
Construction - - 3,000,000 12,000,000 15,000,000
FY Total $1,500,000 $500,000 $3,000,000 $12,000,000 $17,000,000
May 20, 2021 Regular Board Meeting Agenda Packe$2fage 331 of 457
Page 248 of 349
San Ramon Electrical Up rades - District Project 100017
Collection System Design 11 255
Purpose:
Replace and or upgrade electrical equipment which are at the end Project
of its useful life expectancy. Aging
Infrastructure Capacity
Drivers:
This project replaces aging equipment in poor condition at the San Regulatory Sustainability
Ramon Pumping Station. Critical spare parts are identified to
improve resiliency and reliable operations during emergency
conditions, power failures, and severe wet weather i
conditions.
Description:
The following are major elements included in the project:
• The existing Automatic Transfer Switch (ATS) has "
significant limitations in maintainability and needs to
be replaced. To deenergize the ATS or any MCCs, PG&E
has to be called out to shut down power to the entire
station. There is no way that staff can access to shut down power for maintenance. This makes
maintenance on several pieces of electrical equipment very difficult and leaves the station
vulnerable if equipment malfunctions and PG&E can't respond quickly.
• The arc flash hazard is extremely high for the existing ATS and the PG&E service entrance (SE).
To mitigate these issues, staff recommends replacing the existing SE with a unit that has main
rack-out breakers and remote trip functionality.
• Staff also recommends replacing the three remaining Robicon Variable Frequency Drives
(VFDs). Plant Maintenance has had to respond to many failed or malfunctioning Robicon VFDs
throughout the plant and the pump stations.
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
BudgetProject
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $_
Design 180,000 20,000 - - 200,000
Construction - 500,000 500,000 - 1,000,000
FY Total $180,000 $520,000 $500,000 $- $1,200,000
May 20, 2021 Regular Board Meeting Agenda Packe$2fage 332 of 457
Page 249 of 349
Collection System Master Plan 2021 Update — TBD
Program Phase Ranking Score
Collection System Planning 24 160
Purpose:
To update the 2017 CWMP that determines the future direction,
capital improvement needs, and priorities for the District's Aging capacity
collection system's needs. Infrastructure
Drivers: Regulatory Sustainability
Central San maintains 1,540 miles of gravity sewers, 31 force mains
with a combined length of approximately 23 miles, and 18 pumping
stations. This infrastructure is critical for the conveyance of wastewaterI'l CA i e1 5 a o u
and planning for future rehabilitation or replacement is essential.
a
Description: pelow
• The Collection System (CS) Master Plan was one component of the
2019 CWMP. A key deliverable of the CS Master Plan update will be compere�5 ewaStE�ate �aSce Pan
the CIP for replacement of the collection system gravity sewers, large VOLUME 2 OF B
diameter pipelines, and force mains for the next 20-year planning
horizon that provides the descriptions, rationale and estimated costs
for Central San's collection system. A phased inspection program was
developed and prioritized based on age and consequence of failure:
Capital improvement projects and ongoing programs in order to address aging infrastructure, meet
existing and anticipated regulatory requirements, accommodate planned growth, or other critical
collection system needs will be addressed in the update.
• The CS Master Plan update will also review the remaining pump stations that were not renovated
the past five years, including Bates Boulevard, San Ramon, Clyde, and Concord Industrial, and
Acacia Pump Stations (Wagner Ranch Pump Stations)
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $750,000 $- $- $750,000
Design - - - -
Construction - - - - -
FY Total $- $750,000 $- $- $750,000
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Capital Improvement Budget - Treatment Plant Program
The following are the major points of emphasis for the FY 2021-22 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
• 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 Plant-Wide Instrumentation Upgrades and the 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.
The largest and most significant project will be the start of the Solids Handling Facility Improvements,
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.
The design of the Ultraviolet (UV) Disinfection System Improvements will begin and will be merged
with the UV Hydraulic Improvement Project.
The Steam and Aeration Blower Systems Renovations (Steam project) will conclude its condition
assessment of the aging steam systems, secondary treatment processes, and associated electrical
distribution systems. Several of the phases that are derived from the Steam project will be
implemented. These include construction of the Electric Blower Improvement, design of the Aeration
Basins Diffusers Renovation and Seismic Improvement project, and the preliminary design of the Steam
System Improvements.
Other aging infrastructure projects include Piping Renovation - Phase 10, Annual Infrastructure Project,
and Uniform Public Construction Cost Accounting Act (UPCCAA) Urgent Projects.
Regulatory Compliance (Includes Planning and Safety Projects)
This subprogram includes projects that emphasize preparing for future regulations and treatment plant
planning, including 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 design of the UV Disinfection System Improvements will
May 20, 2021 Regular Board Meeting Agenda Packe$2-'age 335 of 457
Page 252 of 349
be implemented to make sure the treatment plant can reliably meet the disinfection National Pollutant
Discharge Elimination System (NPDES) effluent permit requirements. The existing activated sludge
process, which includes the aeration basins. has been added to the CIB because the aeration diffusers
which provide oxygen to the biological system are no longer able to provide adequate oxygen transfer
for a reliable process and could lead to potential permit violations if not attended to in the near future
Capacity(Expansion Projects)
There are no projects in the Expansion Program in FY 2021-22.
Sustainability(Resiliency and Energy Projects)
Under this subprogram, the existing steam and aeration blower systems at the treatment plant will
continue evaluation through condition assessments and the Lighting and Air Conditioning Project will
replace equipment in poor condition with high efficiency models.
• +�4
ti
All projects in this program are summarized, including planned expenditures, in the following Table 3:
May 20, 2021 Regular Board Meeting Agenda Packe$2fage 336 of 457
Page 253 of 349
CIB Table 3 - FY 2021-22 Treatment Plant Program BudgetPro'ect Summar
Project Project Name Budget-to-Date
Number FYs by Project
7304 PLC Systems Upgrades $620,000 $120,000 $- $740,000
7315 Applied Research&Innovations 1,357,274 300,000 700,000 2,357,274
7328 Influent Pump Electrical 4,910,000 3,250,000 1,426,000 9,586,000
Improvements
7339 Plant Control System 1/0 3,470,000 - 1,059,000 4,529,000
Replacement
7341 Walnut Creek/Grayson Creek 550,000 500,000 1,600,000 2,650,000
Levee Rehab
7348 Solids Handling Facility 19,984,000 21,000,000 143,000,000 183,984,000
Improvements-Phase 1
7349 Steam Aeration & Blower 5,800,000 250,000 29,300,000 35,350,000
Systems Renovations
7352 Ultraviolet Disinfection Upgrades 1,350,000 - - 1,350,000
7353 Outfall Improvements-Phase 7 5,920,000 - 5,920,000
7354 Treatment Plant Security 1,255,000 445,000 - 1,700,000
Improvements
7355 Odor Control Upgrades- Phase 1 300,000 - 1,000,000 1,300,000
7357 Plant-Wide Instrumentation 1,021,000 400,000 410,000 1,831,000
Upgrades
7363 Treatment Plant Planning 1,800,000 300,000 300,000 2,400,000
7364 Treatment Plant Safety 1,180,000 - - 1,180,000
Enhancement-Phase 5
7369 Piping Renovation-Phase 10 3,250,000 2,200,000 500,000 5,950,000
7370 Annual Infrastructure 3,000,000 1,255,000 6,500,000 10,755,000
Replacement FY 2019-25
7371 Condition Assessment of Buried 500,000 - 500,000 1,000,000
Yard Pipelines
7373 Fire Protection System-Phase 3 650,000 450,000 - 1,100,000
7375 Contractor Staging 3,350,000 - - 3,350,000
Improvements
100001 25 CCAA Urgent Projects FY 2020- 600,000 600,000 1,800,000 3,000,000
100008 Laboratory Roof&Seismic 500,000 450,000 - 950,000
Upgrades
100009 MHF Hearth Replacement 500,000 - 500,000 1,000,000
100010 Air Conditioning and Lighting 750,000 500,000 500,000 1,750,000
Renovations Project
100011 Plant Electrical Replacement and 400,000 200,000 1,660,000 2,260,000
Rehabilitation
100012 UV Disinfection Replacement and 980,000 2,000,000 32,300,000 35,280,000
Hydraulic Improvements
100014 MRC Building and Maintenance 450,000 300,000 600,000 1,350,000
Shops Improvements
100015 Electric Blower Improvements 1,750,000 7,400,000 6,600,000 15,750,000
100018 Outfall Monitoring 100,000 510,000 - 610,000
Improvements
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Page 254 of 349
Project Project Name Budget-to-D. FY2021-22 Future Total
Number FYs by Project
Aeration Basins Diffuser
TBD* Replacement and Seismic 200,000 2,100,000 23,500,000 25,800,000
Upgrades Project
TBD* TTP Safety Enhancements- Phase - 200,000 618,000 818,000
TBD* Wet Weather Basin 200,000 500,000 - 700,000
Improvements
Treatment Plant Total: $66,697,274 $45,230,000 $254,373,000 $366,300,274
*New projects in FY 2021-22
May 20, 2021 Regular Board Meeting Agenda Packe$3fage 338 of 457
Page 255 of 349
Programmable Logic Control Systems Upgrades - District Project 7304
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 13 230
Purpose: 400=Lroject 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. J
" p
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $-
Design 100,000 - 100,000
Construction 520,000 120,000 - - 640,000
FY Total $620,000 $120,000 $- $- $740,000
May 20, 2021 Regular Board Meeting Agenda Packe$3page 339 of 457
Page 256 of 349
Applied Research &Innovations - District Project 7315
Program Phase Priority Rank Ranking Score
Treatment Plant Planning/Construction 18 200
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 part of its Regulatory Sustainability
vision is to be a 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 4N j
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 the compatibility with wastewater and
facilities, increase understanding of the technology, and help determine whether to consider the
technology.
Description:
This project includes techno-economic evaluations and possible pilot testing of 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 2021-22 FY 2022-23 Future FYs Total
Planning $1,357,274 $150,000 $300,000 $400,000 $2,207,274
Design - - - - -
Construction - 150,000 - - 150,000
FY Total $1,357,274 $300,000 $300,000 $400,000 $2,357,274
May 20, 2021 Regular Board Meeting Agenda Packe$3page 340 of 457
Page 257 of 349
Influent Pump Electrical Improvements - District Project 7328
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 2 330
Purpose: M Project Drivers 61
To address aging electrical components of the influent pumps and Aging
improve reliability. Infrastructure Capacity
Drivers:
Regulatory Sustainability
The Influent Pump Facility is critical to operations. During wet
weather, some of the pumps convey wastewater to the holding
basins. Without the pumps, wastewater cannot be treated or
stored in the basins. The influent pump motors are in a dry pit
room below grade that is susceptible to flooding. A leak in the
piping or flooding of the connected tunnels could 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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 910,000 - - - 910,000
Construction 3,900,000 3,250,000 1,426,000 - 7,900,000
FY Total $4,910,000 $3,250,000 $1,426,000 $- $9,586,000
May 20, 2021 Regular Board Meeting Agenda Packe$3fage 341 of 457
Page 258 of 349
Plant Control System Input and Output Replacement— District Pro'ect 7339
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 8 290
Purpose: 4600kroject 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 2021-22 FY 2022-23 Future FYs Total
Planning $200,000 $- $- $- $200,000
Design 570,000 - 200,000 770,000
Construction 2,700,000 - 859,000 3,559,000
FY Total $3,470,000 $- $- $1,059,000 $4,529,000
May 20, 2021 Regular Board Meeting Agenda Packe$3fage 342 of 457
Page 259 of 349
Walnut Creek/Grayson Creek Levee Rehab — District Project 7341
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 25 150
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
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, and to 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 costs. 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 2021-22 FY 2021-22 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 200,000 - - - 200,000
Construction 250,00 500,000 1,250,000 350,000 2,350,000
FY Total $550,000 $500,000 $1,250,000 $350,000 $2,650,000
May 20, 2021 Regular Board Meeting Agenda Packe$3$'age 343 of 457
Page 260 of 349
Solids Handling Facility Improvements — District Project 7348
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 3 325
Purpose: Project Drivers
To rehabilitate and replace the sludge dewatering, sludge handling,
sludge blending, ash handling, pollution control equipment, Aging
g g' furnace air pInfrastructure Capacity
and structural upgrades to the building housing this equipment.
Drivers: Regulatory Sustainability
The existing furnaces have significant remaining useful life; however,
other solids handling equipment requires replacement. The centrifuges
and cake pumps have been in service for over 25 years, are
costly to maintain, and spare parts are difficult to obtain. Mixing 11
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 • >
• * N
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
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 (already constructed separately)
• 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
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $1,000,000 $- $- $- $1,000,000
Design 12,090,000 - - - 12,090,000
Construction 6,894,000 21,000,000 45,000,000 98,000,000 170,894,000
FY Total $19,984,000 $21,000,000 $45,000,000 $98,000,000 $183,894,000
May 20, 2021 Regular Board Meeting Agenda Packe$3('age 344 of 457
Page 261 of 349
Steam and Aeration Blower Systems Renovations — District Project 7349
Program Phase Prioritv Rank Ranking Score
Treatment Plant Planning/Design 14 225
Purpose: or
To evaluate the existing steam system, waste heat recovery, steam
turbines, electrical power distribution system, and secondary treatment Aging
systems, and to plan and preliminary design of future projects.
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 _ r
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 in the evaluation:
• 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(Currently in design under DP 10015)
• Evaluate modifications to existing aeration tanks and the activated sludge system, including the hydraulics
(Currently in design under new project TBD)
• Evaluate modifications to existing secondary clarifiers and associated return-activated sludge and waste-
activated sludge feed systems.
• Determine impact from Refinery 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
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 2021-22 FY 2022-23 Future FYs Total
Planning $2,500,000 $- $- $- $2,500,000
Design 3,300,000 250,000 250,000 3,750,000 $7,550,000
Construction - - - 25,300,000 $25,300,000
FY Total $5,800,000 $250,000 $250,000 $29,050,000 $35,350,000
May 20, 2021 Regular Board Meeting Agenda Packe$3-'age 345 of 457
Page 262 of 349
Outfall Improvements — Phase 7 — District Project 7353
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 5 305
Purpose:
To inspect the land and submarine portions of the outfall pipeline to Project Drivers
maintain or repair the pipeline and meet regulatory requirements.
Aging
Drivers: Infrastructure Capacity
Central San's NPDES Permit requires proper operation and maintenance
of the outfall pipeline that discharges treated final effluent to Suisun Bay. Regulatory Sustainability
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. w
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
• Make structural and valve modifications to Structure 9000
• Repair two pier structures over submarine section
• Install new safety access hatch
• If needed, include road improvements 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
BudgetProject
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 500,000 - - - 500,000
Construction 5,320,000 - - 5,320,000
FY Total $5,920,000 $- $- $- $5,920,000
May 20, 2021 Regular Board Meeting Agenda Packe$3fage 346 of 457
Page 263 of 349
Treatment Plant Security Improvements — District Project 7354
Program Phase Priority Rank Ranking Score:
Treatment Plant Construction 36 60
Purpose: I Project Drivers
To improve physical security at the treatment plant and to protect
existing critical assets. Aging
Infrastructure Capacity
Drivers:
In addition to worker safety, there are many critical assets that Regulatory Sustainability
require physical security improvements to minimize risk.
In FY 2016-17, a comprehensive security study was completed
for major Central San facilities that utilized the principles of
American Water Works Association J100 Risk Analysis and
Management for Critical Asset Protection methodology
(RAMCAP°J100). RAMCAP°J100 is a comprehensive =- -
approach that enables the estimation of relative risks across
multiple assets while considering both malevolent and
natural hazards. The RAMCAPOJ100 method is a 7-step .-
process including 1) Asset Characterization,
2) Threat Characterization, 3) Consequence Analysis,
4) Vulnerability Analysis, 5) Threat Analysis, 6) Risk Analysis, and 7) Risk Management.
Description:
Findings from this study related to the treatment plant will be implemented under this project. Some
improvements may be implemented in collaboration with the pumping station and general security
improvement projects that were also identified under the same study. In general, recommendations
include:
• Increased surveillance, intrusion detection, and access control improvements
• Project will be bid and constructed with DP 7375
• 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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $-
Design 337,000 - - - 337,000
Construction 918,000 445,000 - 1,363,000
FY Total $1,255,000 $445,000 $- $- $1,700,000
May 20, 2021 Regular Board Meeting Agenda Packe$3!?age 347 of 457
Page 264 of 349
Odor Control U 2grades — Phase 1 — District Project 7355
Program Phase Priority Rank Ranking Score
Treatment Plant Planning 33 100
Purpose:
To replace existing odor control systems for the Solids roject Drivers
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 v
concrete pads and building roofs are experiencing fi ti.
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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 200,000 - - - 200,000
Construction - - - 1,000,000 1,000,000
FY Total $300,000 $- $- $1,000,000 $1,300,000
May 20, 2021 Regular Board Meeting Agenda PackeMpage 348 of 457
Page 265 of 349
Plant-Wide Instrumentation Upgrades — District Project 7357
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 27 130
Purpose:
To install new instrumentation for improved monitoring, control,
and optimization of Central San facilities. Aging
Infrastructure Capacity
Drivers:
Collecting and leveraging data is 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 adjust. 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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 290,000 - - - 290,000
Construction 631,000 400,000 410,000 - 1,441,000
FY Total $1,021,000 $400,000 $410,000 $- $1,831,000
May 20, 2021 Regular Board Meeting Agenda Packe$4:Page 349 of 457
Page 266 of 349
Treatment Plant Planning— District Project 7363
Program Phase Priority Rank Ranking Score
Treatment Plant Planning 25 150
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 NPDES 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 2021-22 FY 2022-23 Future FYs Total
Planning $1,800,000 $300,000 $300,000 $- $2,400,000
Design - - - - -
Construction - - - - -
FY Total $1,800,000 $300,000 $300,000 $- $2,400,000
May 20, 2021 Regular Board Meeting Agenda Packe$4:Page 350 of 457
Page 267 of 349
Treatment Plant Safely Enhancement— Phase 5 — District Project 7364
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 9 275
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. s
The first three phases of this project addressed various
safety repairs and improvements. I�
Description: l
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $-
Design 100,000 - - - 100,000
Construction 1,080,000 - - 1,080,000
FY Total $1,180,000 $- $- $- $1,180,000
May 20, 2021 Regular Board Meeting Agenda Packe$4fage 351 of 457
Page 268 of 349
Piping Renovation- Phase 10 - District Project 7369
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 17 205
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.
• � Y
Description: 46
The following are major elements included in the project:
• Replace piping, valves, and pumps throughout the
treatment plant
• Replace the potable water pneumatic water tanks and associated controls
• Replace water piping in the Plant Operations Building equipment gallery and several pipelines
• Replace the plant hypochlorite chemical feed system and storage and feed pumps, and associated
piping
• Replace electrical and controls
• Replace equipment identified by the Asset Management Program and Operations and Maintenance
staff such as VFDs
Operating Department Impact and Funding Source:
This project will have insignificant impact on the operating budgets. Project expenditures are funded
from Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
BudgetProject
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $50,000 $- $- $- $50,000
Design 600,000 - - - 600,000
Construction 2,600,000 2,200,000 500,000 - 5,300,000
FY Total $3,250,000 $2,200,000 $500,000 $- $5,950,000
May 20, 2021 Regular Board Meeting Agenda Packe$4fage 352 of 457
Page 269 of 349
Annual Infrastructure Replacement— District Project 7370
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 16 210
Purpose:
To fund ongoing rehabilitation and replacement of wastewater '
treatment plant assets. This program will be continued until AgingCapacity
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
• 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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $100,000 $200,000 $200,000 $600,000
Design 450,000 200,000 400,000 500,000 1,550,000
Construction 2,450,000 955,000 1,400,000 3,300,000 8,105,000
FY Total $3,000,000 $1,255,000 $2,000,000 $4,500,000 $10,775,000
May 20, 2021 Regular Board Meeting Agenda Packe$4._'age 353 of 457
Page 270 of 349
Condition Assessment of Buried Pipelines — District Project 7371
Program Phase Priority Rank Ranking Score
Treatment Plant Planning 34 95
Purpose:
Project
To assess the condition and replacement needs of major buried
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 2021-22 FY 2022-23 Future FYs Total
Planning $500,000 $- $- $500,000 $1,000,000
Design - - - -
Construction - - - - -
FY Total $500,000 $- $- $500,000 $1,000,000
May 20, 2021 Regular Board Meeting Agenda Packe$4(page 354 of 457
Page 271 of 349
Fire Protection Systems - Phase 3 - District Project 7373
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 31 110
Purpose: Project Drivers
To upgrade or replace the treatment plant fire protection
systems. Aging Capacity
Infrastructure P y
Drivers:
Most of the fire protection systems were built in the late 1970s, Regulatory sustainability
and 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 I
existing fire protection 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 systems
continue to be problematic and are in frequent need of repair.
Repairs to the fire protection systems have become extremely - +'
complex and difficult; therefore, long-term reliable improvements
to the fire protection systems 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 upgrades to HOB and the laboratory fire panels and other fire protection
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $_
Design 250,000 - - - 250,000
Construction 400,000 450,000 - - 850,000
FY Total $650,000 $450,000 $- $- $1,100,000
May 20, 2021 Regular Board Meeting Agenda Packe$4-'age 355 of 457
Page 272 of 349
Contractor Sta in Im rovements - District Project 7375
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 6 305
Purpose: M Project Drivers
To increase security by organizing and preparing the treatment
plant for several large future projects, such as the Solids Handling Aging Capacity
Facility Improvement and Filter Plant and Clearwell Improvements Infrastructure
— Phase 1A Projects.
Regulatory Sustainability
Drivers:
Safety and security are the primary drivers for this project.
The current contractor staging area is not built to secure
contractor business from normal daily operations. The
treatment plant's main gate is used for all activities. This
project will provide security and safety improvements so
that the contractors' 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 a 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 and the RV Receiving 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
BudgetProject
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $50,000 $- $- $- $50,000
Design 350,000 - - - 350,000
Construction 2,950,000 - - - 2,950,000
FY Total $3,350,000 $- $- $- $3,350,000
May 20, 2021 Regular Board Meeting Agenda Packe$4fage 356 of 457
Page 273 of 349
UPCCAA Urgent Projects FY 2020-25 — District Project 100001
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 12 235
Purpose:
To fund ongoing rehabilitation and replacement of treatment plant Project
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
wastewater. The majority of these systems are designed
and scheduled for replacement under other capital projects, n
however, there are cases where a project is not in place or a
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
• Complete the construction of the POB Conference Room
• 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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $_
Design 100,000 100,000 100,000 200,000 500,000
Construction 500,000 500,000 500,000 1,000,000 2,500,000
FY Total $600,000 $600,000 $600,000 $1,200,000 $3,000,000
May 20, 2021 Regular Board Meeting Agenda PackeM!Fage 357 of 457
Page 274 of 349
Laboratory Roof and Seismic Upgrades - District Project 100008
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 22 170
Purpose:
Project
Maintain a functional Laboratory building.
Aging
Drivers:
Infrastructure Capacity
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
s
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
isosin ro the seismic modification now due to
p p g to perform
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
• Evaluate need for additional space
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $_
Design 150,000 - - - 150,000
Construction 350,000 450,000 - - 800,000
FY Total $500,000 $450,000 $- $- $950,000
May 20, 2021 Regular Board Meeting Agenda Packe$5(Fage 358 of 457
Page 275 of 349
Hearth Replacements - District Project 100009
Pr ority Rank Ranking Score —Treatment Plant Construction 23 165
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 rM_ ��-
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
PFr
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $- $-
Design - - - - -
Construction 500,000 - - 500,000 1,000,000
FY Total $500,000 $- $- $500,000 $1,000,000
May 20, 2021 Regular Board Meeting Agenda Packe$5page 359 of 457
Page 276 of 349
Air Conditioning and Lighting Renovations— District Project 100010
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 24 160
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
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 UPCCAA 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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $-
Design 150,000 - - - 150,000
Construction 600,000 500,000 500,000 - 1,600,000
FY Total $750,000 $500,000 $500,000 $- $1,750,000
May 20, 2021 Regular Board Meeting Agenda PackeMpage 360 of 457
Page 277 of 349
Plant Electrical Replacement and Rehabilitation — District Project 100011
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 23 165
Purpose:
To fund ongoing rehabilitation and replacement of the treatment Project
plant electrical systems assets and to refurbish electrical Aging Capacity
switchgears to maintain the reliability of critical electrical Infrastructure
infrastructure at the treatment plant.
Regulatory Sustainability
Drivers:
The treatment plant consists of thousands of electrical assets with a range of ages. The majority of
existing treatment plant 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, reliable
management, and treatment of wastewater. Some of the I
improvements to be funded from this project were identified as
part of a condition assessment. Ongoing condition assessments I .w• .
will be needed to confirm the timing of other rehabilitation and °
replacement work. 00
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. Ongoing
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 UPCCAA projects that are urgent or critical
• Pre-purchase of equipment for projects (e.g., variable frequency drives or long lead items)
Operating Department Impact and Funding Source:
This project will have insignificant impact on the operating budgets. Project expenditures will be
funded from Capital Revenues.
Location(s): Miscellaneous Areas within the Treatment Plant
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $_
Design 50,000 50,000 50,000 150,000 300,000
Construction 350,000 150,000 365,000 1,095,000 1,960,000
FY Total $400,000 $200,000 $415,000 $1,245,000 $2,260,000
May 20, 2021 Regular Board Meeting Agenda Packe$5fage 361 of 457
Page 278 of 349
UV Disinfection Replacement and Hydraulic Improvements — District Project 100012
Program Phase Priority Rank Ranking Score
Treatment Plant Planning/Design 18 200
Purpose:
To replace the existing ultraviolet (UV) disinfection system and ' ' " Drivers
increase hydraulic capacity of the UV disinfection system. Aging
Infrastructure Capacity
Drivers:
The UV disinfection system was constructed in the mid-1990s to Regulatory Sustainability
replace the use of chlorine gas. At the time, existing denitrification
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. The current
system also has hydraulic restrictions limited the flow that can be
treatment under wet weather conditions.
Description:
This project includes the evaluation of the following major elements:
• Combines the UV Replacement and Hydraulic Improvements projects
• Replace existing UV disinfection system, including assessment of existing system and the 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
• Hydraulic Evaluation -Confirm UV and final effluent hydraulics and hydraulic improvements
• Dose Validation Testing-Confirm disinfection capacity of UV disinfection system using latest
disinfection criteria
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- UV System, Final Effluent Channel and Final Effluent Pipe
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $980,000 $- $- $- $980,000
Design - 1,500,000 500,000 - 2,000,000
Construction - 500,000 1,500,000 30,300,000 32,300,000
FY Total $980,000 $2,000,000 $2,000,000 $30,300,000 $35,280,000
May 20, 2021 Regular Board Meeting Agenda Packe$5fage 362 of 457
Page 279 of 349
MRC Building Modifications and Maintenance Shops Improvements — DP 100014
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 32 105
Purpose:
Update the Maintenance Reliability Center (MRC) Building for Project Drivers
improved space planning and to replace outdated facilities as well Aging
as to increase Maintenance Shops' storage requirements. Infrastructure capacity
Drivers:
Regulatory Sustainability
The MRC building is located in the center of the treatment plant
and is 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. Any floorplan
modifications will 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 showers and 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
• Improve and increase Maintenance Shops' storage requirements
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s):Treatment Plant
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $_
Design 150,000 - - - 150,000
Construction 300,000 300,000 300,000 300,000 1,200,000
FY Total $450,000 $300,000 $300,000 $300,000 $1,350,000
May 20, 2021 Regular Board Meeting Agenda Packe$5._'age 363 of 457
Page 280 of 349
Electric Blower Improvements — District Project 100015
Program Phase Priority Rank Ranking Score
Treatment Plant Construction 7 295
Purpose:
To increase reliability for aeration Blower operations and increase
capacity during emergency outages or planned PG&E events. Aging Capacity
Infrastructure
Drivers:
Three existing aeration blowers supply air to four aeration basins, Regulatory sustainability
pre-aeration system, and other plant locations. Two of the
blowers are steam driven. The third blower is electric and
serves as a backup during maintenance shutdowns or
under emergency scenarios. The findings of a recent
condition assessment and capacity analysis are that the
existing electric blower does not provide adequate
redundancy, has uncertain reliability with the standby -
power generation system, has limited turndown
capabilities, and cannot be operated in with the steam
blowers. New electric blowers would resolve these issues
and run during PG&E Shutoff events and provide the
necessary air while equipment is offline during planned shutdowns during the Solids project.
Description:
This project includes the following major elements:
• Demolition of the existing electric blower system
• Procure and install three new high-efficient electrical blowers and associated electrical, VFDs, and
controls package.
• Construct installation of the blowers including piping, air intake filters, electrical, cooling systems,
maintenance platforms, and other miscellaneous electrical and controls work.
Operating Department Impact and Funding Source:
The impacts to the operating budgets have not yet been determined. Project expenditures are funded
from Capital Revenues.
Location(s): Treatment Plant- Pump and Blower Building
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 1,300,000 - - - 1,300,000
Construction 350,000 7,400,000 6,600,000 - 14,3250,000
FY Total $1,750,000 $7,400,000 $6,600,000 $- $15,750,000
May 20, 2021 Regular Board Meeting Agenda Packe$5(page 364 of 457
Page 281 of 349
Outfall Monitoring Improvements — District Project 100018
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 31 110
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 NPDES Permit requires proper operation and maintenance Regulatory Sustainability
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,
r:J
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
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $-
Design 100,000 10,000 - - 110,000
Construction - 500,000 - - 500,000
FY Total $100,000 $510,000 $- $- $610,000
May 20, 2021 Regular Board Meeting Agenda Packe$5-'age 365 of 457
Page 282 of 349
Aeration Basins Diffuser Replacement and Seismic Upgrades — District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 19 190
Purpose:
To replace the existing aeration tanks diffusers to increase aeration '
system performance and optimize the activated sludge process. Aging Capacity
Infrastructure
Drivers:
Recently, the existing aeration system has not able to reliably Regulatory sustainability
maintain a desired dissolved oxygen levels across the basins. This
has contributed to a steady deterioration (increase) in sludge
volume index (SVI), which is a key secondary process '" ,fi:
operational parameter for activated sludge settleability Hake
and compaction. The increase in the SVI has in turn, led to
44ti��
concerns over the ability to consistently meet NPDES -
discharge limitations. While Central San continues to meet p fe
i sris+aisea
NPDES discharge permit limits, further deterioration in ' sssaia
performance of the aeration system will cause more -_
challenges over time, which also leads to poor settleability gam$
in the secondary clarifiers and impacts the performance of
the UV disinfection system.
Description:
Phase 2 will include mechanical rehabilitation/replacement, concrete repairs, and structural seismic
improvements to prolong the remaining useful life of the aeration basins and diffuser systems. This
project will also replacing all diffusers, some of the air piping, reconfigure the aeration basins (A/N
Tanks) to maximize the use of unused channels to optimize the activated sludge process using available
volume and tankages as well as upgrading instrumentation and controls to improve air flow
distribution.
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-Aeration Basins
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $200,000 $- $- $- $200,000
Design - 2,100,000 400,000 - 2,500,000
Construction - - 800,000 22,300,000 23,100,000
FY Total $200,000 $2,100,000 $1,200,000 $22,300,000 $25,800,000
May 20, 2021 Regular Board Meeting Agenda Packe$5fage 366 of 457
Page 283 of 349
Treatment Plant Safety Enhancement- Phase 6 - District Project TBD
Treatment Plant Design 34 95
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 next phase of this project addresses various safety
repairs and improvements.
Description: . .__ _ — •
r
The project will include treatment plant facility
improvements for safety.
Operating Department Impact and Funding Source: - 1
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $-
Design - 200,000 - - 200,000
Construction - - 618,000 - 618,000
FY Total $- $200,000 $618,000 $- $818,000
May 20, 2021 Regular Board Meeting Agenda Packe$5!?age 367 of 457
Page 284 of 349
Wet Weather Basin Improvements — District Project TBD
Program Phase Priority Rank Ranking Score
Treatment Plant Design/Construction 32 110
Purpose: Project Drivers
To reduce the risk of flood damage to the treatment plant by
improving the wet weather basins berms and levees through a Aging Capacity
Infrastructure
project.
Drivers: Regulatory Sustainability
The treatment plant uses a series of earthen basins that are used
as temporary storage. During extreme wet weather events,
bypassing operations are limited by a common bypass
pipeline used to divert primary effluent and/or raw
screened influent to the wet weather holding basins. When
flow exceeds the treatment hydraulic capacity of
downstream processes, it must be diverted to these �-
.;� :-
basins. These basins must remain in good working order to
avoid limiting the flexibility and handling wet weather
loc..
flows. There are no other options than conveying � -�--
wastewater to the holding basins. _ a►�'- ~ `
L-0ty
Description: '- ,,,;..,.•' 4 -
Due to the critical nature of the treatment plant facilities, a �`' `.����"�.�• "`,i
reliable wet weather basins system is critical as plant ! =
operations divert screened sewer and primary when the downstream capacity is exceeded. That
diverted flow that is temporarily stored in the wet weather basins is then returned to the head of the
plant for treatment when the capacity is available.
• Holding Basin Improvements - improve holding basin grading, drainage, drainpipes and valves
• Weir Structure - replace existing wood stop logs that require manual adjustment with an adjustable
weir structure to provide reliable holding basin level control and maximize holding basin capacity
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): Wet Weather Basins
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2021-22 Future FYs Total
Planning $- $- $- $- $-
Design 200,000 - - - 200,000
Construction - 500,000 - - 500,000
FY Total $200,0000 $500,000 $- $- $700,000
May 20, 2021 Regular Board Meeting Agenda Packe$6(Fage 368 of 457
Page 285 of 349
Capital Improvement Budget (CIB) - General Improvements Program
The General Improvements Program is primarily concerned with property, administrative buildings,
management information systems including information technologies, asset management, and new
equipment and vehicle needs as described in more detail below:
• Vehicle Replacement Program -The CIB includes a yearly allowance for vehicle replacement.
Specific vehicles are replaced each year as approved through the annual budget process.
• Equipment Acquisition- New Equipment items are budgeted and shown in the CIB. They are
purchased and approved similar to the Vehicle Replacement Program on a yearly basis.
• Management Information Systems-This 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 along with a new Strategic IT plan.
• General Projects- Projects include improvements to 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 all CIB program 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.
All projects in the General Improvements Program are summarized, including past, current, and
planned future budgets required to complete each project as shown on the following Table 4:
CIB TABLE 4 - FY 2021-22 General Improvements Program Budget/Project Summary
• Budget-to-9 r I r r) ..
Project Name c
k PMF,�.te FY by Proect
A k
8230 Capital Legal Services $208,665 $20,000 $20,000 $248,665
8236 District Easement Acquisition 408,047 75,000 - 483,047
8240 IT Development FY 2016-25 3,738,794 750,000 500,000 4,988,794
8250 ERP Replacement 5,030,000 300,000 - 5,330,000
8251 Capital Improvement Plan&Budget 490,000 100,000 200,000 790,000
8252 POB E.V. Charging Station 30,000 460,000 - 490,000
8253 COVID-19 Response 200,000 75,000 - 275,000
8516 Equipment Acquisition 1,226,000 250,000 500,000 1,976,000
8517 Vehicle Replacement Program FY 2016-26 3,818,000 900,000 3,600,000 8,318,000
100003 Property Repairs and Improvements 300,000 150,000 450,000 900,000
100004 HOB Exterior Repairs 350,000 50,000 - 400,000
*TBD Security Improvements FY 2021-25 - 200,000 400,000 600,000
*TBD Technology Strategic Plan - 500,000 500,000 1,000,000
General Improvements Program Total: $15,799,506 $3,830,000 $6,170,000 $25,799,506
New Projects in FY 2021-22
May 20, 2021 Regular Board Meeting Agenda Packe26page 369 of 457
Page 286 of 349
Capital Legal Services — District Project 8230
J�, � Priority Rank Ranking Score
General Improvements All 26 145
Purpose:
To streamline the processing of legal bills.
Aging
Capacity
Drivers: FInfrastructure
In the past, legal expenses were charged to individual
capital projects. This process required extra staff time Regulatory Sustainability
each month to review legal bills and get approvals from several
different project managers.
Description: �.
Capital legal service expenses are no longer charged to
individual capital projects. The processing of legal bills has
been streamlined by charging legal expenses to one capital
account with four charge numbers for the four programs.
This reduces the amount of time all parties must spend
processing the legal bill.
Operating Department Impact and Funding Source:
This project will not have an impact on the operating budgets. Project expenditures are funded from
Capital Revenues.
Location(s): Central San-wide
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $208,665 $20,000 $20,000 $- $248,665
Design - - - -
Construction - - - -
FY Total $208,665 $20,000 $20,000 $- $248,665
May 20, 2021 Regular Board Meeting Agenda Packel6page 370 of 457
Page 287 of 349
District Easement Ac uisition— District Project 8236
Program Phase Priority Rank Ranking Score
General Improvements Construction 30 115
Purpose: I 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
3W1-
easements may have to be acquired for those specific
41
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 rights-of-way.
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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - -
Construction 408,047 75,000 - - 483,047
FY Total $408,047 $75,000 $- $- $483,047
May 20, 2021 Regular Board Meeting Agenda Packe$6fage 371 of 457
Page 288 of 349
Information Technolo v Develo ment- District Project 8240
Program Phase Priority Rank Ranking Score
General Improvements Construction 20 185
Purpose:
To replace and upgrade Information Technology (IT) infrastructure
and software as needed. Aging Capacity
Infrastructure
Drivers:
An IT Development Plan was developed to centralize efforts and Regulatory Sustainability
funding in the development of computer and telecommunication
technology within Central San. Central San budgets IT on an
annual basis. — —
The IT Master Plan was approved in 2015 and its
implementation is within the Capital Improvement Program
(CIP) and the Ten-Year Capital Improvement Plan.
Description: - =
This project is the implementation of the IT Master Plan which
includes the following major elements:
• Network infrastructure upgrades
• Disaster recovery/business continuity
• Cloud-based technology improvements
• Business application suite improvements
• Increasing mobile presence
• Desktop technology refreshment
• Web redesign and enhancement
• 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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - - - -
Construction 3,738,794 750,000 500,000 - 4,988,794
FY Total $3,738,794 $750,000 F $500,000
May 20, 2021 Regular Board Meeting Agenda Packe$6fage 372 of 457
Page 289 of 349
Enterprise Resource Planning Re lacement— District Project 8250
Program Phase Priority Rank Ranking Score
General Improvements Construction 9 280
Purpose:
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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 200,000 - - - 200,000
Construction 4,730,000 300,000 5,030,000
FY Total $5,030,000 $300,000 $- $- $5,330,000
May 20, 2021 Regular Board Meeting Agenda PackeWpage 373 of 457
Page 290 of 349
Capital Improvement Program and Budget Improvements— District Project 8251
�Ranking Score 1111111 1
General Improvements Construction 35 85
Purpose:
Provide for the capitalization of the staff time necessary for the M Project Drivers
data gathering and production of the CIB and CIP, and for upgrades Aging
to the current program management system software, Infrastructure capacity
E-builder, 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 GP}FALIMPROVF1r1ENFPLAN
systems at Central San. In order to keep up with the increase in
the CIP, staff has modernized its program and project management
software system to be more effective in delivering project with � .
implementation of E-builder. As of July 1, 2019, E-builder will be
done with its pilot stage and go live for all projects. I —i9 �' °a � ,
Description:
Upgrades of additional processes, such as master commitments I LQ [26--Yw CIP
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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design - - - - -
Construction 390,000 100,000 100,000 100,000 690,000
FY Total $490,000 $100,000 $100,000 $100,000 $790,000
May 20, 2021 Regular Board Meeting Agenda Packe$6(page 374 of 457
Page 291 of 349
POB Electric Vehicles (EVI Charging Station — District Project 8252
Program Phase Priority Rank Ranking Score
General improvements Design/Construction 37 45
Purpose:
To install electric vehicle charging stations (EVCS) in the parking lot Project Drivers
of the Plant Operations Building. Aging
Infrastructure Capacity
Drivers:
The installation of EVCS provides an opportunity for Central San to Regulatory Sustainability
demonstrate its environmental leadership. The transportation
sector is the largest producer of greenhouse gas emissions in
California and the state legislature has established many incentives and
mandates for its electrification. In late 2020, Governor Newsom signed an
order prohibiting the sale of gasoline-driven vehicles after 2035, so electric
vehicles (EVs) will be the future in California. Having the ability to charge I
at work is a major factor in a consumer's decision to purchase an EV, so
Central San can encourage and support our employees' transition to EVs by
installing EVCS, in addition to providing access to EV charging to any
customers and other guests visiting Central San's headquarters in
Martinez.
Description:
This project will extend the appropriate electrical infrastructure from the
Pump and Blower Building and install Level 3 EVCS in the POB parking lot.
Any work to be included at CSO will be done under the General
Improvements Program.
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): POB Parking Lot; CSO Parking Lot (TBD)
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $30,000 $10,000 $- $- $40,000
Design - 100,000 - - 100,000
Construction - 350,000 - - 350,000
FY Total $30,000 $460,000 $- $- $490,000
May 20, 2021 Regular Board Meeting Agenda Packe$6-'age 375 of 457
Page 292 of 349
COVID-19 Response Plan — District Project 8253
Program Phase Priority Rank Ranking Score
General Improvements Planning/Design/Construction 1 345
Purpose:
Provide for the capitalization of a response plan to safely bring Project Drivers
staff back to the office post-pandemic in the workplace. Aging
Infrastructure Capacity
Drivers:
Welcoming employees back to the post-pandemic workplace Regulatory Sustainability
presents a challenging paradox. Traditionally, the office has
functioned as a place for communal activities; often intentionally
designed to bring people together to interact, solve problems, share '
ideas and information. In contrast, returning to the workplace now s -.7
means that we need to find new ways to bring people together,
while simultaneously providing the capability to keep them apart i
safely and responsibly. As the pandemic has turned conventional
thinking on workplace design inside-out, previously normative
approaches to space per person, ratios of open to enclosed space,
collaboration zones, and environmental systems should be
reconsidered to implement, promote, and sustain employee health and wellness at significantly
different levels.
Description:
Actions in the foreseeable future will focus on preparing both the people returning to the workplace
and the space itself. Decisions surrounding workplace modifications will need to be based on thorough
assessment and evaluation in addition to risk/ reward considerations balancing initial costs versus on-
going health and wellness, employee productivity, effectiveness, and business continuity. Vital to the
transition back to the office, and undoubtedly the most immediate to be addressed, is the change
management process that helps enable this transition, i.e., finding effective ways to communicate the
new workplace reality to the business community and their employees.
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): HOB, POB, and CSO, Central San-wide
BudgetProject
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $10,000 $- $- $- $10,000
Design 40,000 - - - 40,000
Construction 150,000 75,000 - 225,000
FY Total $200,000 $75,000 $- $- $275,000
May 20, 2021 Regular Board Meeting Agenda Packe$6fage 376 of 457
Page 293 of 349
E ui ment Ac uisition— District Project 8516
Program Phase Priority Rank Ranking Score
General improvements Construction 22 170
Purpose:
To provide new, safe, and cost-effective equipment for operations Project
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 f __
equipment such as:
• Laboratory equipment such as: an autoclave with
recording device, distilled water units (4), and a new
instrument to automate sample handling for bacterial
enumeration (IDEXX sealer)
• Maintenance Shop equipment such as: a hydraulic
box and pan break and a thermal imaging camera
• Various carts and shuttles
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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - - -
Construction 1,226,000 250,000 250,000 250,000 1,976,000
FY Total $1,226,000 $250,000 $250,000 $250,000 $1,976,000
May 20, 2021 Regular Board Meeting Agenda Packe$6page 377 of 457
Page 294 of 349
Vehicle Replacement Program— District Project 8517
Program: Phase: Priority Rank: Ranking Score
General Improvements Construction 18 200
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 thisA.
program can carry forward to the next fiscal year when delivery
takes place.
Description:
The following vehicles are being considered in FY 2021-22:
Description Description
Mid-Size Eight Passenger Vehicle (1) %Ton 4x4 Truck (1)
F-550 Truck Chassis (1) %Ton 42 Truck (1)
Lift Truck Midsize Truck (1)
Ton 44 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
BudgetProject
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - -
Construction 3,818,000 900,000 900,000 2,700,000 8,318,000
FY Total $3,818,000 $900,000 $900,000 $2,700,000 $8,318,000
May 20, 2021 Regular Board Meeting Agenda Packe$7(page 378 of 457
Page 295 of 349
Properly Repairs and Improvements — District Project 100003
Program Phase Priority Rank Ranking Score
General Improvements Construction 30 115
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
others. The Imhoff Place properties also serve as a buffer
between the treatment plant and nearby neighborhoods and are - _ f
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. _� =s
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 Headquarters Office
Building 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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - - - -
Construction 300,000 150,000 150,000 300,000 900,000
FY Total $300,000 $150,000 $150,000 $300,000 $900,000
May 20, 2021 Regular Board Meeting Agenda Packe$7page 379 of 457
Page 296 of 349
HOB Exterior Repairs — District Project 100004
Program Phase Priority Rank Ranking Score
General Improvements Construction 30 115
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 2021-22 FY 2022-23 Future FYs Total
Planning $- $- $- $- $-
Design 30,000 - - - 30,000
Construction 320,000 50,000 - - 370,000
FY Total $350,000 $50,000 $- $- $400,000
May 20, 2021 Regular Board Meeting Agenda Packe$7:Fage 380 of 457
Page 297 of 349
Security Improvements FY 2 02 1-2 5 — District Project TBD
Program Phase Priority Rank Ranking Score
General Improvements Planning 28 125
Purpose:
To update security and identify improvements for the safety for Project Drivers
employees and the public, meet safety standards, reduce exposure Aging
to liability, reduce property loss, and reduce operations and Infrastructure capacity
maintenance expenses.
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 I
h
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
• Capitalize costs for enhanced security related to capital projects
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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - - -
Construction - 200,000 100,000 300,000 600,000
FY Total $- $200,000 $100,000 $300,000 $600,000
May 20, 2021 Regular Board Meeting Agenda Packe$7fage 381 of 457
Page 298 of 349
Technolo Strate is Plan — District Project TBD
. - . 111 �111100MI!hasiMMr Priority Rank Ranking Score
General Improvements Planning 20 185
Purpose:
The activities performed during the Technology Master Plan
project will include and invite participation from all Central San Aging Capacity
Infrastructure
Departments and Divisions.
Drivers: Regulatory Sustainability
Update the 2015 IT Master Plan to further develop efforts and
funding in the development of computer and
telecommunication technology within Central San.
Central San budgets IT on an annual basis. Application Effectiveness
Constrained by l mplementati on Highly Effective Application
(Low to Medium 1101) (High ROI)
The IT Master Plan was approved in 2015 and its Action:Reimplement Action:Leverage
implementation is within the Capital Improvement
Program (CIP) and the Ten-Year Capital Improvement
Ineffective Application User Effectiveness Con;;,.: ,...
Plan. {Low Ron Application{Low to Medium RDI:
Action:Replace Action: Replace
Description: 11
This project is the implementation of the IT Master Plan
GMI0 N-LLC-Alkh1h.Paerved
which includes the following major elements:
• Smart Utility Initiatives
• Business Intelligence & Analytics
• SCADA roadmap
• Enterprise Asset Management (EAM) —Asset reliability, condition and health monitoring
• Electronic Document Management
• Enterprise systems and architecture
• GIS roadmap
• BIM/CAD standards development
• Security roadmap
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
7Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $- $500,000 $500,000 $- $1,000,000
Design - - - - -
Construction - - - - -
FY Total $- $500,000 $500,000 $- $1,000,000
May 20, 2021 Regular Board Meeting Agenda Packej7Rage 382 of 457
Page 299 of 349
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
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.
May 20, 2021 Regular Board Meeting Agenda Packe$y._'age 383 of 457
Page 300 of 349
The major emphasis of the Recycled Water Program for the next fiscal year will be to finalize
construction of 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 2021-22 Recycled Water Program Budget/Project Summar
Project Project Budget-to- FY 2021-22 Future FYs Total Project
Number Date Cost
7361 Filter Plant and Clearwell
Improvements—Phase 1A $14,989,000 $16,000,000 $7,600,000 $38,589,000
7366 Recycled Water Distribution System 515,000 200,000 1,045,000 1,760,000
Renovations Program
7368 Water Exchange Project 350,000 50,000 - 400,000
100002 Filter Plant and Clearwell 400,000 250,000 32,800,000 33,450,000
Improvements—Phase 16
TBD * Zone 1 Recycled Water 2021+ - 100,000 900,000 1,000,000
Total Program $16,254,000 $16,600,000 $42,345,000 $75,199,000
*New Project in FY 2021-22
May 20, 2021 Regular Board Meeting Agenda Packe$y('age 384 of 457
Page 301 of 349
Filter Plant&Clearwell Improvements — Phase 1A— District Project 7361
Program Phase Priority Rank Ranking Score
Recycled Water Construction 5 315
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 pumped off-site 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 �� z
will be incorporated in a future Phase 1B project.
Description: <
The Phase 1A project is under construction and 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 2021-22 FY 2022-23 Future FYs Total
Planning $1,130,000 $- $- $- $1,130,000
Design 2,870,000 - - - 2,870,000
Construction 10,989,000 16,000,000 7,600,000 - 34,589,000
FY Total $14,989,000 $16,000,000 $7,600,000 $- $38,589,000
May 20, 2021 Regular Board Meeting Agenda Packe$y-'age 385 of 457
Page 302 of 349
Recycled Water Distribution System Renovations Program— District Project 7366
Ranking Score
Recycled Water Planning 25 150
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 ...0e. w
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
4..;
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 2021-22 FY 2022-23 Future FYs Total
Planning $100,000 $- $- $- $100,000
Design 200,000 - - - 200,000
Construction 215,000 200,000 209,000 836,000 1,460,000
FY Total $515,000 $200,000 $209,000 $836,000 $1,760,000
May 20, 2021 Regular Board Meeting Agenda Packe$7fage 386 of 457
Page 303 of 349
Water Exchange Project— District Project 7368
RM — "IM Ar Priority Rank Ranking Score
Recycled Water Planning 25 150
Purpose: Project Drivers
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 •'` :_ ei`x'
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
NKF__� Project Budget
Phase: Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $350,000 $50,000 $- $- $400,000
Design - - - - -
Construction - - - - -
FY Total $350,000 $50,000 $- $- $400,000
May 20, 2021 Regular Board Meeting Agenda Packel7fage 387 of 457
Page 304 of 349
Filter Plant&Clearwell Improvements — Phase 1B — District Project 100002
Program Phase Priority Rank Ranking Score
Recycled Water Design 23 165
Purpose:
To rehabilitate and replace components of the existing Filter Plant Irroject 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 off-site 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 A.
pumping replacement are being implemented under the earlier r •
phase, Filter & Clearwell Improvements- 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 programmable logic controls 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 State Revolving Fund loan.
Location(s): Treatment Plant
Project Budget
Phase Budget-to-Date FY 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design 400,000 250,000 250,000 2,100,000 3,000,000
Construction - - - 30,450,000 30,450,000
FY Total $400,000 $250,000 $250,000 $32,550,000 $33,450,000
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Page 305 of 349
Zone 1 Recycled Water— District Project TBD
Program Phase Priority Rank Ranking Score
Recycled Water Construction 33 100
Purpose: Project Drivers
To continue providing recycled water for landscape irrigation
customers within the Zone 1 distribution area, which includes the Aging Capacity
Infrastructure
City of Pleasant Hill and portions of the Cities of Concord and
Martinez. This is a continuation of DP 7306.
Regulatory Sustainability
Drivers:
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 -s N
per year. Al
r,
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 2021-22 FY 2022-23 Future FYs Total
Planning $-
Design - - -
Construction - 100,000 100,000 800,000 1,000,000
FY Total $- $100,000 $100,000 $800,000 $1,000,000
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Ten-Year Capital Improvement Plan
(FY 2021 - FY 2031)
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, 2021 and ending June 30, 2031.
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 $939.7 million.
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Page 308 of 349
Ten-Year Capital Improvement Plan Budget Process
The Ten-Year CIP assumes that funds will be available to support the plan. For FY 2021-22, these funds
come from sources as discussed in the Financial Summary section. The only two controllable sources
are issuance of debt or adjustment of the capital component of the Sewer Service Charge. With
respect to debt, the Capital Plan assumes that a 2021 State Revolving Fund (SRF) loan will be finalized
and will fund the Solids Handling Facility Improvements Project from FY 2021-22 through
FY 2025-26.
No other debt offerings are currently assumed in the ten-year financial plan, but others are being
explored. A bond offering for June 2021 may substantially fund the portion of the FY 2021-22 CIB that
is currently to be funded by Sewer Service Charges. If this bond offering proceeds, a budget
amendment will be made to reflect the revised funding overall funding sources of the FY 2021-22
budget. There is also an expectation that Central San will apply for additional SRF loans over the
course of the Ten-Year CIP, but these are not assumed in the financial plan as no assurance is currently
available that this competitive funding will be available. If successful, Central San's financial plan
would be revised accordingly.
The Ten-Year CIP is currently budgeted 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 the future 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
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• Identified new or updated policies, programs, and guidelines for Board consideration to address
overall program implementation including project prioritizations, implementation costs, project
delivery methods, potential funding sources, and an estimated schedule for implementing plan
elements
• 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. These projects include the following:
• Nutrient Removal (Nutrient Watershed Permit): Possibly within 10 years **
• Water Exchange (Refinery Recycled Water) Project— 16-20 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 plan is to
wholesale recycled water to CCWD, who will oversee the new distribution system and 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
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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
then works 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.
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 2031 Collection System replacement throughout the collection system.
Project
Implement cured-in-place pipe repair projects to address
Blanket C
Cured t Colace Pipe Presentontract through 2031 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 2031 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 2027 Pumping Stations.
Rehabilitation or replacement of large diameter sewers
based on the inspection program. This program will fund
Large Diameter rehabilitation and replacement of aging large diameter
Piping Renovation Present to 2031 Collection System 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.
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Page 311 of 349
Ten-Year CIP - Collection System Program Projects
Pumping Stations
Project Title Year(s) Location Description
Rehabilitation and replacement of miscellaneous pumps,
Pump Station Present Martinez, Fairview, piping,valves,electrical systems,and other equipment
Upgrades—Phase 2 through 2025 and Maltby Pumping Stations identified in the field. Acquire necessary pumping station
emergency response equipment and critical spare parts.
Pumping Station
Programmable 2024 to 2027 Miscellaneous Upgrade outdated PLC software language for all pumping
Logic Controller Pumping Stations stations.
(PLC) Upgrades
Buchanan North
and South, Implement major pumping station upgrades to address
Pumping Station
Improvements 2023 to 2026 Concord Industrial, structural, mechanical, electrical, instrumentation,and
and Other other improvements.
Pumping Stations
Ten-Year CIP - Collection System Program Projects
Regulatory Compliance
DescriptionProject Title Year(s) Location
Continued planning to identify potential capital
improvement projects required to address aging
Collection System Present infrastructure needs, regulatory drivers,capacity
Planning through 2031 Collection System 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 2031 Collection System network to include areas of planned development,and
other major upgrades and updates to the hydraulic model.
Large Diameter Present Phased inspection program for large-diameter trunks and
Pipeline Inspection through 2031 Collection System interceptors to update condition and prioritize
Program rehabilitation and replacement needs.
Force Main Present
Phased inspection program for force mains to update
Inspection Program through 2031 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 Central San-wide of-way,and inspection for construction of developer
20310 installed sewer facilities.
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Page 312 of 349
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.
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 2028 to management and holding basin operation such as raw
Management 2031 Weather Holding Basins wastewater diversion pipeline,drain back pumping,sixth
influent pump,and improved basin grading and drainage.
Construct up to two additional primary sedimentation
2028 to Pre-Aeration, tanks and corresponding new pre-aeration(grit removal)
Primary Expansion 2031 Primaries tank, improve wet weather grit handling,and replace
primary sludge pumps.
Aeration Basins
Diffuser 2021 to Design the replacement the existing aeration tanks
Replacement and 2028 A/N Tanks diffusers to increase aeration system performance and
Seismic Upgrades optimize the activated sludge process.
Project
Increase secondary treatment wet weather capacity to
Secondary accommodate a 20-year wet weather storage event. This
Treatment 2024 to Secondary Clarifiers includes a mixed liquor flow split structure for the
Hydraulic 2029 and Mixed Liquor Flow secondary clarifiers, up to two additional secondary
Improvements clarifiers,and mixed liquor channel improvements such as
new gates.
UV Disinfection Replace the aging existing UV disinfection process with a
Replacement Present to UV Channel, Final new, more energy efficient UV disinfection process.
(Includes UV 2027 Effluent Channel Increase wet weather hydraulic capacity through UV
Hydraulic disinfection and final effluent channel to accommodate a
Improvement) 20-year wet weather storage event.
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Project Title Year(s) Location Description
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
2
Improvements— 202 8 to Treatment Plant project will require complicated shutdowns and
Phase 8 202temporary bypass pumping and piping.
Complete the condition assessment of the existing steam
system and waste heat recovery in the Solids Conditioning
Building,secondary process,and associated electrical
Steam and Aeration Present equipment. Replace, rehabilitate,and/or improve the
Blower Systems Treatment Plant steam system, including steam turbines and associated
Renovations Project though 2027 aeration blowers, as related to aeration energy
requirements,and coordinated with the existing steam
system and heat recovery in the Solids Conditioning
Building.
Electric Blower Present Replace the existing electric blower in the Pump and
Improvements though Treatment Plant Blower Building. Coordinated with the Solids Handling
Project 2026 Facility Improvements Project.
Rehabilitate and replace aeration diffusers,air piping,
structural upgrades,and seismic improvements to
reconfigure the aeration basins(a.k.a.A/N Tanks)to
Aeration Basins
Diffuser Present maximize the use of unused channels to optimize the
Replacement and though Treatment Plant activated sludge process using available volume and
Seismic Upgrades 2027 tankages,as well as upgrade instrumentation and controls
to improve air flow distribution. This project will use the
Project budget previously listed for the Nutrient Removal
Optimization—Level 1 project identified in the prior Ten-
Year CIP.
Ten-Year CIP - Treatment Plant Program Projects
Solids Handling Process
Project Title Year(s) Location Description
Solids Handling Rehabilitate and replace the sludge dewatering,sludge
Facility Present Solids Conditioning handling,sludge blending,ash handling,furnace air
Improvements though 2026 Facilities pollution control equipment,and structural upgrades to
Project the building housing this equipment.
Dissolved Air
Flotation Thickeners 2028 though Solids Conditioning Rehabilitate and renovate the DAFT used for waste
Tanks(DAFT) 2031 Facilities activated sludge thickening.
Improvements
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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 2031 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 2031 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
and Data 2022 to 2026 Treatment Plant upgrade and replacement of the SCADA, PLCs, and
Acquisition (SCADA) communications networks, and determine workforce
planning needs.
Improvements
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 4, 5 and 6
System— 2025 Treatment Plant plan had six phases,combined to four phases this year due
to criticality and safety.
Implement upgrades to the Warehouse building to meet
Warehouse Seismic
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
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(e.g.' piping
Program replacement projects,equipment replacement,and
electrical/instrumentation/control systems rehabilitation).
Program is performed in five-year cycles.
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Page 315 of 349
Ten-Year Capital Improvement Plan - General Improvements Program
The General Improvements 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 Improvements 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 project categories: 1) Vehicles and Equipment
Acquisition, 2) Buildings and District Property, and 3) Information Technology Development.
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 2031 Central San-wide maintenance of Central San assets.
Vehicle
Replacement Present Central San-wide Continued replacement and acquisition of new Central San
through 2031 vehicles.
Program
Ten-Year CIP - General Improvements Program Projects
Buildings and District Proper y
Project Title Year(s) Location Description
Future Property Improvements to Central San's buildings, buffer
Repairs and 2025 to 2031 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 2031 Central San-wide new sanitary sewers that are located on private properties.
General Security Present Central San-wide Continued implementation of general security
and Access through 2031 improvements for Central San buildings and properties.
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Page 316 of 349
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 Central San-wide
through 2031 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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Page 317 of 349
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 2031 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 2031 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 $939.71 million (in 2021 dollars) over the period
from FY 2021-22 through FY 2030-31. A summary of the planned expenditures by program, without
inflation, for the Ten-Year CIP is included in Tables 1-5.
Fw�.e�Eo Aemo� !
�ew �e o,9�,ers
DRAFT
n pcenaraEor a a - oo�o TTe� e e ^ PLANT OF FUTURE
I I �,rt Remcli� Ae:Te o eme oMo:Fa :<e_
Illustration of a Potential Central San Treatment Plant of the Future
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Table 1-Ten-Year Program:Collection SystemFiscal Year 2021 2022 2023 2024 2025 2026 2027 20280
Project# Project Name 10 Year Total 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
5991 Pleasant Hill Sewer Renovation-Phase 2 500,000 500,000 -
8419 Collection System Planning 400,000 200,000 200,000
8436 Pump Station Upgrades-Phase 1 12,644,000 12,644,000
8442 Pump Station Equipment&Piping Replacement-Phase 2 406,000 200,000 206,000
8443 Large Diameter Pipeline Inspection Program-Phase 1 500,000 500,000
8444 Force Main Inspection Program-Phase 1 500,000 500,000
8447 Pump Station Security Improvements 313,000 75,000 82,000 78,000 78,000
8448 Manhole Modifications 750,000 400,000 350,000
8449 Collection System Modeling Support 120,000 120,000
8450 Development Sewerage Support 5,535,000 900,000 927,000 927,000 927,000 927,000 927,000
8451 Collection System Sewer Renovation-Phase 1 1,136,000 1,136,000
8457 Pump Station Upgrades-Phase 2 36,000,000 3,000,000 10,000,000 14,000,000 9,000,000
8461 South Orinda Sewer Renovation-Phase 8 4,600,000 4,600,000
8463 North Orinda Sewer Renovation-Phase 8 4,800,000 4,600,000 200,000
8464 Martinez Sewer Renovation-Phase 7 4,800,000 2,000,000 2,800,000
8465 Walnut Creek Sewer Renovation-Phase 15 4,900,000 4,900,000
8466 Danville Sewer Renovation-Phase 4 4,800,000 1,000,000 3,800,000
10005 Cured-In-Place Pipe Blanket Contract(FY 2020-25) 1,000,000 250,000 250,000 250,000 250,000
100006 Contractual Assesment District Project 3,000,000 500,000 500,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000
100007 Large Diameter Renovation Program 15,500,000 500,000 3,000,000 3,000,000 4,000,000 3,500,000 1,500,000
100017 San Ramon Electrical Improvements 1,020,000 520,000 500,000
TBD Collection System Master Plan(5-Year Update) 750,000 750,000
TBD Collection System Master Plan(10-Year Update) 1,000,000 1,000,000
TBD Collection System Sewer Renovation-Phase 2 97,750,000 13,750,000 21,000,000 21,000,000 21,000,000 21,000,000
TBD Large Diameter Pipeline Inspection Program-Phase 2 1,800,000 450,000 450,000 450,000 450,000
TBD Collection System Modeling Support 2022+ 1,110,000 120,000 120,000 120,000 125,000 125,000 125,000 125,000 125,000 125,000
TBD Force Main Inspection Program-Phase 2 1,000,000 250,000 250,000 250,000 250,000
TBD Pump Station Improvements&Rehabilitations 2,606,000 530,000 531,000 1,545,000
TBD Pumping Station SCADA Upgrades 1,745,000 200,000 515,000 515,000 515,000
TBD Force Main Replacement Program 15,174,000 206,000 721,000 1,545,000 7,916,000 2,286,000 2,500,000
TBD Collection System Planning 2023+ 1,600,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
TBD Pump Station Equipment&Piping Replacement 2023+ 2,076,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 676,000
TBD Manhole Modifications 2023+ 2,800,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000
TBD Pump Station PLC Upgrades 930,000 240,000 690,000
TBD Cured-In-Place Pipe(CIPP)Blanket Contract(FY 2026+) 1,750,000 250,000 300,000 300,000 300,000 300,000 300,000
TBD Collection System Master Plan(10-Year Update) 1,000,000 1,000,000
TBD Large Diameter Renovation Program 2027+ 6,000,000 1,500,000 1,500,000 1,500,000 1,500,000
TBD Collection System Sewer Renovation-Phase 3 85,020,000 21,000,000 21,000,000 21,020,000 22,000,000
TBD Large Diameter Pipeline Inspection Program-Phase 3 1,800,000 450,000 450,000 450,000 450,000
TBD Development Sewerage Support 2027+ 3,708,000 927,000 927,000 927,000 927,000
TBD Force Main Replacement-Bates 2,080,000 2,080,000
Collection System Total: $ 334,923,000 $ 39,795,000 $ 37,385,000 $ 42,011,000 $ 39,082,000 $ 31,797,000 $ 35,283,000 $ 27,588,000 $ 29,882,000 $ 25,322,000 $ 26,778,000
295
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Table 2-Ten-Year Program:Treatment PlantFiscal Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 20
Project# Project Name 10 Year Total 2022 2023 2024 2025 2026 2027 2028 2029 2030 203M
7304 PLC Systems Upgrades 120,000 120,000
7315 Applied Research&Innovations 1,000,000 300,000 300,000 400,000
7328 Influent Pump Electrical Improvements 4,676,000 3,250,000 1,426,000
7339 Plant Control System 1/0 Replacement 1,059,000 100,000 959,000
7341 Walnut Creek/Grayson Creek Levee Rehab 2,100,000 500,000 1,250,000 350,000
7348 Solids Handling Facility Improvements-Phase 1 164,000,000 21,000,000 45,000,000 47,000,000 41,000,000 10,000,000
7349 Steam Aeration&Blower Systems Renovations 29,550,000 250,000 250,000 3,500,000 2,285,000 10,920,000 10,900,000 1,445,000
7353 Outfall Improvements 500,000 500,000
7354 Treatment Plant Security Improvements 445,000 445,000
7355 Odor Control Upgrades-Phase 1 1,000,000 500,000 500,000
7357 Plant-Wide Instrumentation Upgrades 820,000 410,000 410,000
7363 Treatment Plant Planning 600,000 300,000 300,000
7369 Piping Renovation-Phase 10 2,700,000 2,200,000 500,000
7370 Annual Infrastructure Replacement FY 2019-25+ 7,755,000 1,255,000 2,000,000 2,000,000 2,500,000
7371 Condition Assessment of Buried Yard Pipelines 500,000 250,000 250,000
7373 Fire Protection System-Phase 3 450,000 450,000
7375 Contractor Staging Improvements 0
10001 UPCCAA Urgent Projects FY 2020-25+ 2,400,000 600,000 600,000 600,000 600,000
10008 Laboratory Seismic&Roof Upgrades 450,000 450,000
10009 MHF Hearth Replacement 500,000 500,000
10010 Air Conditioning and Lighting Renovations Project 750,000 500,000 250,000
10011 Plant Electrical Replacement and Rehabilitaton 1,860,000 200,000 415,000 415,000 415,000 415,000
10012 UV Disinfection Replacement and Hydraulic Improvements 34,300,000 2,000,000 2,000,000 3,600,000 11,200,000 9,000,000 6,500,000
10014 MRC Building and Maintenance Shops Improvements 900,000 300,000 300,000 300,000
10015 Electric Blowers Improvements 14,000,000 7,400,000 6,600,000
TBD Aeration Basin Diffusers and Seismic Improvements 25,800,000 2,100,000 1,400,000 4,000,000 8,700,000 8,600,000 1,000,000
TBD TP Safety Enhancements-Phase 6 818,000 200,000 618,000
TBD Wet Weather Basin Improvements 500,000 500,000
TBD Fire Protection System-Phase 4 860,000 860,000
TBD Controls System Upgrades-Phase 2 620,000 124,000 124,000 124,000 124,000 124,000
TBD Electrical Infrastructure 16,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
TBD Miscellaneous Seismic Upgrades 800,000 300,000 500,000
TBD ITreatment Plant SCADA Upgrades 8,933,000 593,000 2,060,000 3,090,000 3,190,000
TBD Warehouse Seismic Upgrades 1,220,000 300,000 620,000 300,000
TBD WWTP Master Plan(5-Year Update) 550,000 550,000
TBD Secondary Treatment Hydraulic Improvements 29,050,000 1,850,000 2,000,000 12,000,000 7,200,000 6,000,000
296
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Table 2-Ten-Year Program:Treatment Plant(Continued) Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Project# Project Name 10 Year Total 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
TBD Applied Research&Innovations 2023+ 3,200,000 - 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
TBD Treatment Plant Planning 2023+ 3,200,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000
TBD TP Safety Enhancements-Phase 7 867,000 42,000 124,000 701,000
TBD Treatment Plant Network Resiliency Evaluation 267,000 54,000 213,000
TBD Annual Infrastructure Replacement FY 2025-26+ 14,500,000 4,500,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
TBD CO-Gen Replacement 25,115,000 150,000 250,000 515,000 1,540,000 8,240,000 8,240,000 6,180,000
TBD Surcharge Soil Pile Relocation 18,600,000 1,500,000 7,500,000 9,600,000
TBD Treatment Plant Seismic Study 300,000 300,000
TBD Tunnel Improvements 4,928,000 2,400,000 2,528,000
TBD UPCCAA Urgent Projects FY 2025-26+ 3,000,000 500,000 500,000 500,000 500,000 500,000 500,000
TBD Plant Electrical Replacement and Rehabilitaton 2025+ 2,075,000 415,000 415,000 415,000 415,000 415,000
TBD Outfall Improvements-Phase 8 4,800,000 600,000 4,200,000
TBD Primary Expansion 14,935,000 1,030,000 2,575,000 11,330,000
TBD Standby Generator Expansion 5,356,000 2,678,000 2,678,000
TBD Wet Weather Flow Management 8,250,000 250,000 2,500,000 5,500,000
TBD WWTP Master Plan(10-Year Update) 1,115,000 600,000 515,000
TBD Controls System Upgrades-Phase 3 645,000 129,000 129,000 129,000 129,000 129,000
TBD Odor Control Upgrades-Phase 2 14,549,000 780,000 1,500,000 5,000,000 7,269,000
TBD TP Safety Enhancements-Phase 8 805,000 52,000 83,000 670,000
TBD Solids Handling Facility Improvements-DAFT Tanks 2,369,000 100,000 950,000 1,319,000
TBD Fire Protection System-Phase 5 400,000 400,000
TBD Fire Protection System-Phase 6 400,000 400,000
TBD Secondary Clarifiers Improvements 9,921,000 618,000 2,326,000 6,977,000
TBD JTP Safety Enhancements-Phase 9 1 42,000 42,000
Treatment Plant Total: $ 497,225,000 $ 45,230,000 $ 66,346,000 $ 69,319,000 $ 76,460,000 $ 58,810,000 $ 52,515,000 $ 40,554,000 $ 23,665,000 $ 26,045,000 $ 38,281,000
Table 3-Ten-Year Program:General ImprovementsFiscal Year 2021 2022 2023 2024 202S 2026 2027 2028 2029 2030
Project# Project Name 10 Year Total 2022 2023 2024 202S 2026 2027 2028 2029 2030 2031
8230 Capital Legal Services 40,000 20,000 20,000
8236 District Easement Acquisition 75,000 75,000
8240 IT Development FY 2016-25 1,250,000 750,000 500,000
8250 ERP Replacement 300,000 300,000
8251 Capital Improvement Plan&Budget(Document Management) 300,000 100,000 100,000 100,000
8252 POB E.V.Charging Station 460,000 460,000
8253 Covid Response 75,000 75,000
8516 District Equipment Acquisition 750,000 250,000 250,000 250,000
8517 Vehicle Replacement Program FY 2016-26 4,500,000 900,000 900,000 900,000 900,000 900,000
10003 Property Repairs and Improvements 600,000 150,000 150,000 150,000 150,000
10004 HOB Exterior Repairs 50,000 50,000
TBD Security Improvements 600,000 200,000 100,000 100,000 100,000 100,000
TBD Technology Strategic Plan 1,000,000 500,000 500,000
TBD District Easement Acquisition 2022+ 675,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
TBD Equipment Acquisition FY 2024+ 1,750,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000
TBD Security Improvements Study(10-Year) 600,000 100,000 100,000 100,000 1 100,000 100,000 1 100,000
TBD IT Development FY 2023+ 4,000,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000
TBD Property Repairs and Improvements FY 2025+ 900,000 150,000 150,000 150,000 150,000 150,000 150,000
TBD Capital Legal Services 2023+ 160,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
TBD Vehicle Replacement Program FY 2026+ 4,500,000 900,000 900,000 900,000 900,000 900,000
General Improvements Total: $ 22,585,000 $ 3,830,000 $ 2,595,000 $ 2,095,000 $ 1,995,000 $ 2,095,000 $ 1,995,000 $ 1,995,000 $ 1,995,000 $ 1,995,000 $ 1,995,000
297
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Table 4-Ten-Year Program:Recycled WaterFiscal Year 2021 2022 2023 2024 202S 2026i 0
Project# Project Name 10 Year Total 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
7361 Filter Plant and Clearwell Improvements-Phase 1A 23,600,000 16,000,000 7,600,000
7366 Recycled Water Distribution Systems Renovations Program 1,245,000 200,000 209,000 209,000 209,000 209,000 209,000
7368 Water Exchange Project 50,000 50,000
10002 Filter Plant and Clearwell Improvements-Phase 113 33,050,000 250,000 250,000 1,650,000 5,150,000 11,330,000 13,390,000 1,030,000
TBD Zone 1 Recycled Water 2021+ 1,000,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
TBD I Recycled Water Distribution Systems Renovations Program 1836,000 209,000 1 209,000 1 209,000 1 209,000
Recycled Water Total: $ 59,781,000 $ 16,600,000 $ 8,159,000 $ 1,959,000 $ 5,459,000 $ 11,639,000 $ 13,699,000 $ 1,339,000 $ 309,000 $ 309,000 $ 309,000
Table 5-Ten-Year Program:Totals by ProgramFiscal Year 2021 2022 2023 2024 202S 2026 2027 2028 2029 2030
Programs 10 Year Total 2022 2023 2024 202S 2026 2027 20282030 2031
Collection System 334,923,000 39,795,000 37,385,000 42,011,000 39,082,000 31,797,000 35,283,000 27,588,000 29,882,000 25,322,000 26,778,000
Treatment Plant 497,225,000 45,230,000 66,346,000 69,319,000 76,460,000 58,810,000 52,515,000 40,554,000 23,665,000 26,045,000 38,281,000
General Improvements 22,585,000 3,830,000 2,595,000 2,095,000 1,995,000 2,095,000 1,995,000 1,995,000 1,995,000 1,995,000 1,995,000
Recycled Water 59,781,000 16,600,000 8,159,000 1,959,000 5,459,000 11,639,000 13,699,000 1,339,000 309,000 309,000 309,000
Subtotal 914,514,000 105,455,000 114,485,000 115,384,000 122,996,000 104,341,000 103,492,000 71,476,000 55,851,000 53,671,000 67,363,000
Contingency 25,200,000 2,500,000 2,500,000 2,500,000 2,500,000 1 2,500,000 1 2,500,000 1 2,500,000 2,500,000 2,500,000 2,700,000
Total with Contigency $ 939,714,000 $ 107,955,000 $ 116,985,000 $ 117,884,000 $ 125,496,000 1 $ 106,841,000 $ 105,992,000 $ 73,976,000 $ 58,351,000 $ 56,171,000 $ 70,063,000
298
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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 expects to finalize a State Revolving Fund loan application during mid-2021
for a $173.4 million loan for the Solids Handling Facility that funds planning and construction costs for
that project. Repayment would not commence until the completion of the facility; accordingly a debt
service schedule is not included in this document, however a 20 year amortization is expected, with an
interest rate based on a percentage of the latest State of California General Obligation bond prior to
loan finalization (expected to be less than 1%).
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
BudgetDebt Service Sub-Fund FY 2019-20 FY 2020-21 FY 2021-22
Actual d.
Debt Service Revenue:
Reserve Account Bond Interest Income $-
Ad Valorem Tax(Portion Allocated to Debt Service) 2,749,442 2,517,605 2,511,227
Total Revenue $2,749,442 $2,517,605 $2,511,227
Debt Service Expense:
2018 Bond Interest Payment and Amortized Costs $604,851 $777,605 $706,227
SRF Loan Interest Payment(information is pending finalization of loan
application)
Total Interest Payment and Amortization Costs $604,851 $777,605 $706,227
2018 Bond Principal Payment $2,145,000 $1,740,000 $1,805,000
SRF Water Principal Payment - - -
Total Principal Payments $2,145,000 $1,740,000 $1,805,000
Total Debt Service Interest,Amortized Cost,and Principal Payments $2,749,851 $2,517,605 $2,511,227
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.
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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.
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.
Additional Planned Debt Issuance
A 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.
Central San anticipates utilizing long-term financing in FY 2021-22 to finance the Solids Handling
Project. A $3 million draw on this facility was also anticipated in the budget for FY 2020-21, and a
$34.12 million draw is budgeted in FY 2021-22.
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. In 2020, Central San requested an increase in the funding amount from
$89.6 million to $173.4 million to reflect higher than anticipated project costs, and the revised loan
application was accepted by the SWRCB. After finalization of a loan agreement, expected to be
completed in mid-2021, borrowings are expected to commence.
In the 10-year horizon covered by Central San's financial plan, additional SRF borrowing (subject to
Board approval) applications may be submitted to economically finance other projects.
As of April 2021, staff are also pursuing a potential debt issuance that may fund a portion of
FY 2020-21's sewer construction expenditures, the majority of FY 2021-22 sewer construction spending
not already funded by the SRF loan, and potentially, a portion of the following fiscal year's
expenditures. The issuance amount, if it proceeds, is expected to be approximately $60 million, and is
subject to final structuring, and Board approval. A debt service schedule is not included in this
document, as such information is not yet available. A budget amendment would likely be adopted to
reflect the budgetary effects of this transaction, if it proceeds. Anticipated changes to the budget
would include:
• Allocation of Sewer Service Charge between O&M and sewer construction funds
• Revisions to tables showing sewer construction and O&M revenues
• Revisions to tables detailing overall funding sources
• Revisions to the funding sources and uses charts
• Revisions to the Reserve Calculation tables.
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Figure 1 and Table 2 summarize Central San's historical and currently outstanding debt service
obligations.
Figure 1 - Debt Service by Type
Figure 1 shows annual debt service for past and existing bonds. As described above, potential additional debt issuances
could add to debt service requirements in future years.
�I
S7,000,000
S6,000,DOD
II
S5,DD0,000
II
54,000,000
S3,000,o0 D
52,000,000 I I
S1,000,000
41 00ma4A to 00 ,� rYm � ,• �yImp " F$ � �►i
rn m ms v 000000 0004 � r+ p�� � p �YN N MfeNVn N
th kD P+ CO al OA CV r't1 N tD 00 6l r-1 fY [�I if l�0 n ra ICNi N N N N N N
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s 1994/1998/2002 Refunding Revenue Bonds
■2009 Bonds
■Recycled water Loan I_
■2018 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
120.00
2009 Bonds:
100.00 Adjusted Net
Revenue Debt
Coverage Ratio
80.00
2009 Bonds: Net
60.00 Revenue Debt
Service Coverage
40.00 Ratio
20.00 2018 Bonds:Gross
Revenue Covenant
0.00
,y0 ,yti ,y3 ,yR ��
��� � (Z,;V ��� Otis otiti otiti (S otic (S Otis otic otic Otis oeo� �Ja� 2018 Bonds:Net
ti, y Revenue Covenant
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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 for FY 2021-22 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
1w FY 2019-20 FY 2019-20 FY 2020-21 FY 2021-22 Budgetto
Budget * Actual Budget Budget Budget
Variance
Salaries $40,043,011 $38,005,275 $41,903,973 $42,035,642 $131,669
Salary Vacancy (585,000) - (1,078,000) (1,248,000) (170,000)
Overtime 1,481,379 1,024,961 1,695,518 1,640,900 (54,618)
Standby 377,000 425,455 419,000 422,000 3,000
Compensated Absences Payout 850,000 - 850,000 1,125,000 275,000
Total Salaries $42,166,391 $39,455,692 $42,940,491 $42,850,542 ($89,949)
Current Employee Benefits $18,790,306 $18,018,188 $18,751,483 $19,365,013 $613,530
Benefit Vacancy (1,006,000) (581,000) (716,000) (135,000)
Total Benefits(Active Employees) $17,784,306 $18,018,188 $18,170,483 $18,649,013 $478,530
Total Salaries and Benefits
(Active Employees) $59,950,697 $57,473,879 $61,960,974 $62,624,555 $663,581
Capitalized Administrative O/H _
Total Salaries and Benefits(Active
Employees)after Capitalized $59,950,697 $57,473,879 $61,960,974 $62,624,555 $663,581
Administrative O/H
Retiree Benefit Costs $2,346,075 $2,312,409 $2,451,000 $1,260,000 ($1,191,000)
UAAL/Unfunded Liabilities 13,558,168 13,587,148 14,740,507 14,050,854 (6891653)
Total Benefits and Liabilities for Past
$15,904,243 $15,899,557 $17,191,507 $15,310,854 ($1,880,653)
Service
PW
Total Salaries,Benefits&Liabilities
for Past Service $75,854,940 $73,373,436 $79,152,481 $77,935,409 ($1,217,072)
(Active and Retiree)
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Page 330 of 349
Table 2 - Salaries, Benefits, Retiree and Unfunded Liabilities Detail
Operations &Maintenance Sub-Fund
FY 2019-20 FY 2019-20 FY 2020-21 FY 2021-22 Budget to
Budget Actual Budget Budget Budget
idh Variance
Salaries $36,494,440 $34,247,087 $37,749,821 $37,809,817 $59,996
Salary Vacancy (538,000) - (990,000) (1,248,000) (258,000)
Overtime 1,381,652 1,024,961 1,514,370 1,602,574 88,204
Standby 377,000 425,455 419,000 422,000 3,000
Compensated Absences Payout 850,000 - 850,000 1,125,000 275,000
Total Salaries $38,565,092 $35,697,503 $39,543,191 $39,711,391 $168,200
JL
Current Employee Benefits $17,436,927 $16,686,884 $17,209,569 $17,918,629 $709,060
Benefit Vacancy (1,006,000) (581,000) (716,000) (135,000)
Total Benefits(Active Employees) $16,430,927 $16,686,884 $16,628,569 $17,202,629 $574,060
JL
Total Salaries and Benefits
(Active Employees) $54,996,019 $52,384,387 $56,171,760 $56,914,020 $742,260
Capitalized Administrative 0/H (4,448,368) (4,380,599) (5,083,396) (4,520,000) 563,396
Total Salaries and Benefits(Active
Employees)after Capitalized $50,547,651 $48,003,788 $51,088,364 $52,394,021 $1,305,657
Administrative O/H
Retiree Benefit Costs $2,346,075 $2,312,409 $2,451,000 $1,260,000 ($1,191,000)
UAAL/Unfunded Liabilities 12,436,841 12,490,285 13,376,016 12,781,912 (594,104)
Total Benefits and Liabilities for Past $14,782,916 $14,802,694 $15,827,016 $14,041,912 ($1,785,104)
Service
Total Salaries,Benefits&Liabilities
for Past Service $65,330,567 $62,806,481 $66,915,380 $66,435,933 ($479,447)
(Active and Retiree)
May 20, 2021 Regular Board Meeting Agenda Packej&page 414 of 457
Page 331 of 349
Table 3 - Salaries, Benefits, Retiree and Unfunded Liabilities Detail
Sewer Construction Sub-Fund
lir
FY 2019-20 FY 2019-20 FY 2020-21 FY 2021-22 Budget to
Budget Actual Budget Budget Budget
IL Variance
Salaries $3,548,571 $3,758,188 $4,154,152 $4,225,824 $71,672
Salary Vacancy (47,000) (88,000) - 88,000
Overtime 99,727 181,148 38,326 (142,822)
Standby - - -
Compensated Absences Payout -
Total Salaries $3,601,299 $3,758,188 $4,247,300 $4,264,151 $16,851
Current Employee Benefits $1,353,379 $1,331,304 $1,541,914 $1,446,384 ($95,530)
Benefit Vacancy
Total Benefits(Active Employees) $1,353,379 $1,331,304 $1,541,914 $1,446,384 ($95,530)
Total Salaries and Benefits
(Active Employees) $4,954,678 $5,089,493 $5,789,214 $5,710,535 ($78,679)
Capitalized Administrative Overhead 4,448,368 4,380,599 5,083,396 4,520,000 (563,396)
Total Salaries and Benefits(Active
Employees)after Capitalized $9,403,046 $9,470,092 $10,872,610 $10,230,534 ($642,075)
Administrative Overhead
Retiree Benefit Costs
UAAL/Unfunded Liabilities 1,121,327 1,096,863 1,364,491 1,268,942 (95,549)
Total Benefits and Liabilities for $1,121,327 $1,096,863 $1,364,491 $1,268,942 ($95,549)
Past Service
Total Salaries,Benefits&Liabilities
for Past Service $10,524,373 $10,566,955 $12,237,101 $11,499,476 ($737,625)
(Active and Retiree)
May 20, 2021 Regular Board Meeting Agenda PackeIE)-page 415 of 457
Page 332 of 349
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
Budgetto
FY 2019-20 FY 2019-20 FY 0202020-21 FY 2021-22 Budget Percent
Budget Actual Budget Projected Budget Variance Variance
O&M Salaries&Benefits
-Active Employees
O&M Salaries $38,565,092 $35,697,503 $39,543,191 $37,570,381 $39,711,391 $168,200 0.4%
O&M Benefits
(Active Employees)
0&M Workers'
Compensation $812,841 $822,701 $826,417 $700,452 $804,799 ($21,618) 2.6%
0&M Medical,Health, $5,951,497 $4,990,678 $5,938,569 $5,640,612 $6,366,213 $427,644 7.2%
Vision
O&M Dental $542,665 $476,718 $482,595 $554,488 $494,600 $12,005 2.5%
O&M Retirement- $5,345,727 $4,759,088 $5,181,105 $4,681,486 $5,395,262 $214,157 4.1%
Normal Cost
O&M Deferred Comp $1,990,653 $2,230,918 $2,378,209 $2,063,367 $2,054,432 ($323,777) -13.6%
0&M Federal
Medicare Tax $527,051 $518,608 $543,359 $520,766 $539,461 ($3,898) 0.7%
0&M Other Benefits $241,568 $55,742 $218,315 $190,509 $203,864 ($14,451) -6.6%
0&M OPEB(Health)
Normal Cost $1,499,089 $1,499,089 $1,504,000 $1,489,000 $1,863,000 $359,000 23.9%
O&M OPEB(Dental)- $153,836 $153,836 $135,000 $132,400 $180,000 $45,000 33.3%
Normal Cost
0&M OPEB(Life)- $2,000 $2,000 $2,000 $2,000 $17,000 $15,000 750.0%
Normal Cost
0&M Accrued
Compensated Absence
$- $1,177,507 $ ($ ) $ $ 0.0%
(now included in
Salaries)
0&M Benefit Vacancy ($636,000) $- ($581,000) $- ($716,000) ($135,000) 23.2%
Factor
O&M Benefits(Active $16,430,927 $16,686,884 $16,628,569 $15,975,081 $17,202,629 $574,060 3.5%
Employees)
O&M Capitalized
Administrative Overhead
Credit(indirect costs
associated with non ($4,448,368) ($4,380,599) ($5,083,396) ($4,773,658) ($4,520,000) $563,396 11.1%
productive hours and
Admin Overhead)
O&M Benefits less Cap $11,982,559 $12,306,285 $11,545,173 $11,201,423 $12,682,629 $1,137,456 9.9%
O/H Credit(Active)
O&M Salaries&Benefits $50,547,651 $48,003,788 $51,088,364 $48,771,803 $52,394,021 $1,305,657 2.6%
May 20, 2021 Regular Board Meeting Agenda Packe$efage 416 of 457
Page 333 of 349
Table 4 - Salaries, Benefits (Detailed), Retiree and Unfunded Liabilities (Continued)
Account Description FY 2019-20 FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 Budget to Budget Percent
Budget Actual Budget Projected Budget Variance Variance
Capital
Capital Salary and
Benefits* $4,954,677 $5,089,493 $5,789,214 $6,708,573 $6,979,476 $1,190,262 20.6%
Portion of Capitalized 4,448,368 4,380,599 5,083,396 4,773,658 4,520,000 (563,396) -11.1%
Overhead from above
Capital Salary,Benefits 9,403,045 9,470,092 10,872,610 11,482,231 11,499,476 626,866 5.8%
and Capitalized Overhead
O&M and Capital Salaries
and Benefits(Active) $59,950,696 $57,473,879 $61,960,974 $60,254,035 $63,893,497 $1,932,523 3.1%
Benefits-Retiree
O&M OPEB(Health)- $2,035,911 $2,049,927 $2,156,000 $2,134,000 $1,107,000 ($1,049,000) -48.7%
UAAL
O&M OPEB(Dental)- 195,164 149,501 176,000 172,600 102,000 (74,000) -42.0%
UAAL
O&M OPEB(Life)-UAAL 115,000 112,981 119,000 118,900 51,000 (68,000) -57.1%
O&M OPEB(Vision)
UAAL
0.0%
Total OPEB UAAL/ $2,346,075 $2,312,409 $2,451,000 $2,425,500 $1,260,000 ($1,191,000) -48.6%
Unfunded Liabilities
Pension UAAL/Unfunded
Liabilities/Additional
Contributions
Pension UAAL/Unfunded
Liabilities $11,186,841 $11,240,285 $12,126,016 $11,672,536 $11,531,912 ($594,104) -4.9%
Additional UAAL 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 - 0.0%
Contributions
Total Pension UAAL/ $12,436,841 $12,490,285 $13,376,016 $12,922,536 $12,781,912 ($594,104) -4.4%
Unfunded Liabilities
Total O&M Salaries&
Benefits,Capital,Retiree $74,733,612 $72,276,573 $77,787,990 $75,602,070 $77,935,409 $147,419 0.2%
Benefits,and Unfunded
Liabilities
* Comprised of capitalized Salaries& Benefits charged to Central San Capital projects.
May 20, 2021 Regular Board Meeting Agenda Packe$epage 417 of 457
Page 334 of 349
Table 5 - Changes in Net Position and Fund E uity
Actual Actual Projected Projected
Total Operating Revenue $85,678,166 $87,222,779 $64,836,872 $92,963,737
Total Non-Operating Revenues 24,898,986 24,658,211 23,352,505 20,893,733
Total Revenues $110,577,152 $111,880,990 $88,189,377 $113,857,470
Total Operating Expenses $73,278,924 $100,715,441 $106,961,716 $112,974,103
Non-Operating Expense-Interest 1,025,006 604,851 520,000 549,000
Total Expenses $74,303,930 $101,320,292 $107,481,716 $113,523,103
Income Before Capital Contributions $36,273,222 $10,560,698 ($19,292,338) $334,366
Total Capital Contributions 46,886,850 53,068,468 68,586,403 73,086,124
Change in Net Position 83,160,072 63,629,166 49,294,065 73,420,490
Beginning Net Position 620,971,490 704,131,562 767,760,728 817,054,793
Restatement-Governmental Accounting
Standards Board 75
Ending Net Position $704,131,562 $767,760,728 $817,054,793 $890,475,283
Net Investment in Capital Assets $655,586,304 $692,117,172 $709,852,972 $741,302,972
Restricted for Debt Service - 2,639 - -
Unrestricted 48,545,258 75,640,917 107,201,821 149,172,311
Total Net Position $704,131,562 $767,760,728 $817,054,793 $890,475,283
Net Position is classified into three categories: Net Investment in Capital Assets, Restricted for Debt
Service, and Unrestricted. The classification is based on availability or accessibility of the resource,
rather than its origin. Net position is a measure of the overall financial condition of Central San.
Over time, trends in net position provide indications of Central San's financial strength. Central San's
financial condition is affected by numerous factors including financial policies, rate and spending
decisions, and external factors such as overall economic trends affecting the service territory, new
regulatory requirements, and accounting pronouncements.
The largest portion of Central San's net position is the investment in capital assets (e.g., land,
buildings, machinery, equipment, intangible assets, and sewer line infrastructure), less any related
debt used to acquire those assets that are still outstanding.
May 20, 2021 Regular Board Meeting Agenda Packe$}(page 418 of 457
Page 335 of 349
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
Contrasted Against Net Assessed Value of Taxable Property in Central San Service Territory
Amounts in millions
$140,000 $20
$120,000
$100,000 $15
$80,000
$10
$60,000
$40,000 $5
$20,000
$0 $0
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o� OCI do titi titi ti3 ti° yh, ti� y�, ti� tip' yo
o ,,yo ,,yo ,tio ,,yo ,,yo ayo ayo ,tio ,tio ,tio ,,yo
F F F F F F e F F F F F F
Assessed Value of Taxable Property in Central San Service Territory(Left Axis)
Central San Ad Valorem Tax Collections(Right Axis)
May 20, 2021 Regular Board Meeting Agenda Packe$}page 419 of 457
Page 336 of 349
Page Intentionally Blank
May 20, 2021 Regular Board Meeting Agenda PackejjFage 420 of 457
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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 (i.e. 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.
May 20, 2021 Regular Board Meeting Agenda Packe$l:page 421 of 457
Page 338 of 349
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 California non-profit public benefit corporation utilized historically by Central San as a
Costa Sanitary long-term financing vehicle for its 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 comprehensive annual financial report is prepared at the close of each fiscal year to
Annual Financial show the actual audited condition of Central San's funds and serves as the official public
Report record of Central San's financial 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)
May 20, 2021 Regular Board Meeting Agenda Packell Page 423 of 457
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Terms and Definitions • 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 Reserves A document outlining minimum reserve thresholds, identifying current and potential
Policy reserves, and explaining what reserves are, or will be used for.
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
Accounting organizations:The Financial Accounting Standards Board for commercial and not-for-profit
Principles (GAAP) entities, and the Governmental Accounting Standards Board for governmental entities in
the United 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 62 An accounting pronouncement of the GASB issued in 2010 that incorporated into the
GASB's authoritative literature certain accounting and financial reporting guidance that is
included in the following pronouncements issued on or before November 30, 1989,which
does not conflict with or contradict GASB pronouncements: (1) Financial Accounting
Standards Board (FASB) Statements and Interpretations; (2)Accounting Principles Board
Opinions; (3)Accounting Research Bulletins of the American Institute of Certified Public
Accountants' (AICPA) Committee on Accounting Procedure.
Central San's Board adopted the Regulatory Accounting provisions of GASB 62 in April
2021, as described in the Financial Summary section of this budget document.
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.
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BudgetTerms and Definitions Used in the Document
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)
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
Info works° 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.
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BudgetTerms and Definitions Used in the Document
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.).
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 budgetary
Property Services 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.
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BudgetTerms and Definitions Used in the Document
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 against
Fund Reserve 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.
Regular Position Full-time, civil service position.
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).
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BudgetTerms and Definitions Used in the Document
Sinking Fund A method by which a government may set aside money over time to pay for a project or
obligation.
Staffing Plan The classes and positions that have been authorized by the Board and have been
determined necessary to carry out Central San functions. Central San's current staffing
level is based on a 2015 Organization and Staffing Plan, which resulted from a study
conducted by Raftelis Financial Consultants, recommending 290 FTE positions.
Strategic Plan The document that provides a blueprint for how Central San will respond to future
challenges and changing priorities over a two-year period. It outlines specific goals,
strategies, and objectives to guide Central San and establishes criteria to measure
progress.
Strategy Highest level of capital improvement activities, generally a grouping of related programs.
Represents key capital objectives as defined in the Mission Statement, Strategic Plan, and
Board policies and directives.
Statement of Net A statement reporting the present financial position of an entity by disclosing the value of
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.
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BudgetTerms and Definitions Used in the Document
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)
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
ADC Actuarially Determined Contribution
Board Board of Directors
CAD Contractual Assessment Districts, Computer Aided Design
CalPERS California Public Employees' Retirement System
CCCERA 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 Program
CIPP Cured-in-Place Pipe
CPI Consumer Price Index
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
O&M Operations& Maintenance
OPEB Other Post-Employment Benefits
PLC Programmable Logic Controller
POB Plant Operations Building
RAM PCAP J100 Risk Analysis and Management for Critical Asset Protection
RSA Rate Stabilization Account
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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