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Home My WebLink About04.a. Receive presentation of the annual Capital Improvement Program Review for Fiscal Year (FY) 2023-24Page 1 of 10 Item 4.a. F__1_448�411C_S0 October 2, 2024 TO: ENGINEERING AND OPERATIONS COMMITTEE FROM: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER REVIEWED BY: GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE PRESENTATION OF THE ANNUAL CAPITAL IMPROVEMENT PROGRAM REVIEW FOR FISCAL YEAR (FY) 2023-24 Staff will present the attached FY 2023-24 Capital Improvement Program year in review. EPC Consultants, Inc. will be in attendance. Strategic Plan re -In GOAL ONE: Customer and Community Strategy 1— Deliver high -quality customer service, Strategy 3 - Build neighborhood and industry relations GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations GOAL FOUR: Governance and Fiscal Responsibility Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility GOAL FIVE: Safety and Security Strategy 1 - Reduce and eliminate risks of injury or illness, Strategy 2 - Protect Personnel and assets from threats and emergencies GOAL SIX: Infrastructure Reliability Strategy 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program GOAL SEVEN: Innovation and Agility Strategy 1 - Leverage data analytics to become a more efficient utility ATTACHMENTS: 1. Presentation October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 31 of 42 October 2, 2024 Fiscal Year 2023-24 Capital Improvement Program Year In Review Greg Norby Deputy General Manager - Engineering and Operations Background Purpose of the Annual Capital Improvement Program (CIP) Look Back Annual Review Workshop with 18 Staff - Strengths, Weaknesses, Opportunities, and Threats (SWOT) Framing Takeaways for Current and Future Focus Financial Performance Key Projects Progress Discussion I� Page 2 of 10 Attachment 1 r �-Jwm October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 32 of 42 1 Page 3 of 10 Elements of a Successful CIP We build the right projects for the right reasons, in the right sequence People - pace, training, tools, communication, roles, and collaboration' Program management and reporting systems and processes Set up for maximizing lifecycle value of the assets and P �•� ; systems Adaptable to changing middle to long term needs in a dynamic world` Stakeholder understanding, confidence, and support Strengths District has increased project delivery pace to match program projections, on schedule for $100 million (M) per year Broad progress across all infrastructure systems; treatment plant, pumping stations, and collection systems Project managers' early fiscal year (FY) 2023-24 projections in Oracle Enterprise Project Management (EPM) were realized Financial alignment between revenues, budget, and spend rate improving Funding strategy for state, federal assistance to reduce debt service costs Safety - strong safety record resulting from collaboration between staff, contractors, and construction management teams District staff continue to be our greatest asset. Deep bench of long tenure staff bring expertise, dedication, professional pride, and collaboration October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 33 of 42 2 Page 4 of 10 Strengths Continued Contractor and private party claims from construction activity are minimal Customer and community impacts are low, fostering positive reputation on high visibility projects Regulatory compliance maintained for air, water, collection systems, etc. High quality work and finished products across the CIP Project planning and prioritization evolving to reflect asset management cycle and integrated systems perspective, Asset on boarding workflow and asset health •- monitoring initiatives making steady progress G Weaknesses Senior staff anticipated attrition in next 5 years, loss of institutional knowledge and senior management Recruiting and retaining high quality staff in competitive regional labor market Consulting engineering expertise - regional demands for same resources, notably in specialty areas such as electrical, instrumentation, and controls (EI&C) Supply chain timing for heavy electrical and other key equipment Program and project administration, reporting, and management tools (Oracle EPM/Enterprise Resource Management, Procore Construction Management, etc.) Staying ahead of the assets/systems on -boarding wave Training for Operations & Maintenance (O&M) staff on new systems, balancing baseline work with the CIP r October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 34 of 42 3 Page 5 of 10 Opportunities . iM H i Ili Leverage a complex, sophisticated CIP to recruit talent Mentoring, training, and internal collaboration Technology initiatives that can support the CIP Supply chain planning to minimize procurement risks - Leverage major outside service team capacity to drive - internal initiatives E i Limited duration positions for peak delivery loads Collaborative (alternative) delivery such as Design -Build Threats Supply chain uncertainty Demands on contractors and specialty work in the Bay Area - Nutrients related capital project prioritization and opportunity tradeoffs Attrition and succession planning progressMEW, - Ja October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 35 of 42 4 Page 6 of 10 Recent and Projected Capital Spending by FY $92.4 Million ■Adj,sted Bodpt ■Total Spent ■Collection System ■ Treatment Plant ■General Imp—ments ■Recycled Water Sldl � Slz1 Slm + Sim W. F. I �n L $20 k I L E20 $ 2019-20 2020-21 2021-22 2022.23 Fiscal Vear 2023-24 202425 2025.26 2026-27 2027-28 Rscal Vear 2028.29 202&30 FY 2023-24 CIP by the Numbers $13.9M $64.4M ■ Construction Cormactom (70%) • Consultants (15%) . Lahor& Benefits (12%) e Equipment (2%) ■ Vehicles (11%) . Other{tl%) • Suppliesand Material (<1%) October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 36 of 42 5 Page 7 of 10 Major Project Accomplishments in FY 2023-24 Treatment Plant Solids Handling Facility Improvements (Solids), Phase 1A construction Aeration Basins Diffuser Replacement, Phase 1 construction Return Activated Sludge (RAS) Improvements construction Steam Renovations, Phase 1A, 1B design Filter Plant and Clearwell Improvements, Phase 1A construction, Phase 1B in design Completed construction of the Influent Pump Electrical Improvements and Electric Blower Improvements / Piping Odor Control Systems condition assessment Secondary Clarifiers condition assessment October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 37 of 42 6 Page 8 of 10 Solids 1A, Sludge Blending Tank and Infill Slab Solids 1A - Wet Scrubber October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 38 of 42 Page 9 of 10 Collection Systems - Downtown Walnut Creek Replaced 4,400 linear feet (LF) sewer mains with 10- inch polyvinyl chloride (PVC) by open -cut method Existing sewers were flat, structural defects, and fats, oils, and grease (FOG) issues • Highly congested utility corridor • Commercial area, restaurants, and businesses with heavy traffic • Project coordination with City of Walnut Creek and East Bay Municipal Utility District (EBMUD) AI Pleasant Hill Sewer Renovations, Phase 2 Replaced 8,700 LF of small diameter sewer installed via open cut, horizontal directional drilling (HDD), pilot tube guided auger boring (PTGAB), and cured -in -place -pipe lining (CIPP) methods Existing sewers were flat, substandard, and at the end of their useful life Project deepened sewers and reversed flows to tie into existing 36-inch trunk sewer in Gregory Lane Project coordination with City of Pleasant Hill paving, Contra Costa Water District water line project October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 39 of 42 8 Page 10 of 10 Pump Station Upgrades, Phase 2A Martinez, Fairview, and Maltby Pumping Stations: Unsafe access for O&M Existing steel pumping station cans are corroded Poor electrical safety and reliability equipment, outdated EI&C New pumping station structures, diesel generators, dry -pit submersible pumps, and EI&C equipment Increasing wet weather capacity Final completion in October 2025 October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 40 of 42 9